DA Memo – December 4, 2007

1. Important reminders
2. “Working after retirement” EFT payments for local employers
3. Update on forms
4. What compensation to include in contributions
5. IRS compensation limits for contributions
6. Change in optional group life insurance for military leave

1. Important Reminders

Important to Login to the Employer Web Portal
If you haven’t used the portal recently, please take a few minutes in the next week to login to be sure everything is working well for you. Encourage other staff at your organization with access to do the same. Call or e-mail if you need help with a password. Preparing now will ease help line congestion when annual reporting begins in January. Thank you for making the time to login soon.

EFT Touch-Tone Phone System Cutoff is December 31
December 31 is the final cutoff date to make contribution payments by electronic fund transfer (EFT) with the touch-tone phone system. Beginning January 1, all EFT payments will go through the employer web portal. The toll-free phone number for EFT will not be available after December 31.

January Rate Change for Local Employers
Employer contribution rates increase January 1 for local KPERS and KP&F employers. Please refer to the rate letter you received in June 2007 for your employer’s contribution rate. Rates are also available at www.kpers.org in the employer section by clicking “Contribution Rates.”

2. “Working After Retirement” EFT Payments for Local Employers

This information is only for local employers.

When KPERS retirees return to work for a different employer, generally the employer makes contributions if the position is covered by KPERS benefits. “Working After Retirement” contributions are remitted by payroll period just like regular employer contributions, but at a special rate. Late payment penalties also apply.

If you haven’t already, over the next month, you will switch from making contribution payments by electronic fund transfer (EFT) on a touch-tone phone to making EFT payments through the employer web portal. In the past, using the phone system you selected “8” as the category to report working after retirement payments. This has changed with the employer web portal. At login, be sure to select “6” with your employer ID to remit working after retirement contributions. Whenever you see “6” with your employer ID in the portal, it is referring to working after retirement.

For example
Sedgwick County ’s employer ID number is 0080.
0080-1 is for regular KPERS
0080-3 is for regular KP&F
0080-6 is for KPERS working after retirement

3. Update on Forms

In the past, employers used the same form to report a member disability or a death. In September, KPERS split the form into two new forms.

1. Employer’s Report of Disability (KPERS-60)
2. Employer’s Report of Death (KPERS-61)

Employer Web Portal Forms
Just a reminder that three functions are available on the employer web portal. You can use the portal instead of sending paper forms.

1. Adjustment: replaces the KPERS-17 EPD and the KPERS-17 OPT
2. Enrollment: replaces the KPERS-1
3. Certification: replaces verification of most recent contributions letter for a retirement

The Adjustment function is especially helpful because you no longer need to figure out which KPERS-17 form to use. The system decides for you based on information you enter. Another benefit of all three online functions is that you can see any issues right away.

Detailed instructions on how to use the functions are available for download at www.kpers.org in the employer section. They are also available under the help section of the web portal.

4. What Compensation to Include in Contributions

Often employers are told to make contributions on Social Security wages. This may work for some employers, but not everyone. Some employers have types of compensation that may not be included for Social Security, but should be included for KPERS.

Note: Be sure to withhold employer and employee contributions from gross compensation before any
deductions or reductions.

5. IRS Compensation Limits for Contributions

The Internal Revenue Service sets a contribution limit based on annual earnings and when someone was hired. Do not send contributions for any earnings over the annual limit. Please see section #4 on what compensation to include in Retirement System contributions.

6. Change in Optional Group Life Insurance for Military Leave

In the past, employees with optional group life insurance could continue their coverage for up to 12 months while on military leave. This limit has increased to 16 months. Employees on military leave can now continue their optional group life insurance for up to 16 months.

After the continuation period, the employee needs to “convert” or “port” to keep coverage. See the Optional Group Life Insurance How-to Guide for Designated Agents at www.kpers.org in the employer section.

Questions?

If you have any questions, please contact the KPERS InfoLine.

• Toll-free, 1-888-275-5737
• In Topeka, 296-6166
• E-mail, kpers@kpers.org