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Adjustments to Prior Contributions

Employer Manual

Revised:

2/22

Frequently Viewed

If You Have Questions

Related Quick Vids

KPERS Glossary
  • When you need to increase wages that have already been reported

    Some reasons for an increase:

    • reported incorrect pay
    • reporting additional pay
    • reporting missed pay
    • reporting leave payouts
  • When you need to decrease wages that have already been reported

    Some reasons for an decrease:

    • reported incorrect pay
    • withheld from leave payouts by mistake
  • When you need to change contribution amounts because of a service purchase
  • When you need to make new contributions that were not made while mistakenly waiting to begin employee’s membership
  • When you need to refund all employee contributions

    Some reasons for refunding all contributions:

    • employee is earning less than 50% of pay
    • employee is not working in a KPERS-eligible position (non-covered)

Make an adjustment as soon as the error is discovered. KPERS may discover the error and contact you, or you may find it through your own audit. Pay any arrearages for unpaid contributions.

Report adjustments in the employer web portal (EWP). Quick Vid: Adjustments

For arrearage period that is 6 months or less Who Pays?
Contribution Type Period of arrearage Employee Employer
Employee Quarter in which error was found yes no
Remaining quarter(s) optional 1/2 no
Service Purchase Entire period yes no
Employer Entire period no yes

1. If employee chooses to pay remaining quarter(s), he or she will earn service credit.

2. If employee chooses to NOT pay remaining quarter (s), he or she will not receive the service credit. credit.

Note:Employees always pay adjustments related to service purchases for entire period contributions were owed.

Example

An employee began working on February 4, 2021. On May 24, 2021, the employer realized the employee should have been a member and should have started contributing to KPERS from his or her hire date in February. This arrearage is less than 6 months.

Quarters of Service Who Pays Employee Contribution?
Q1 01/01/2021 to 03/20/2021
Feb 4 (hired) to Mar 20 (end Q1) 		Employee has option
Q2 03/21/2021 to 06/20/2021
May 24 (error discovered)
Arrearage was 3 months, 20 days (Feb 4 - May 24) 		Employee must pay arrearage
Q3 06/21/2021 to 09/20/2021 Employee pays
Q4 09/21/2021 to 12/31/2021 Employee pays

The member has the option to pay the arrearage in the first quarter but must pay the arrearage in the second quarter since error was found in the second quarter. If member does not pay, he or she would not receive service credit for first quarter.

Employer must pay employer contributions for entire period regardless of what the employee chooses. Enter a separate adjustment on the employer portal for each calendar year of the arrearage. For 2014 and before, contact KPERS.

Note: e: Adjustments change the member record. They’re NOT payments. After you submit an adjustment, KPERS processes the adjustment and generates an invoice. You must then make a payment using the EWP payment process.

If the duration of the arrearage is more than 6 months, employer pays employee AND employer contributions.

Contribution Type Period Who Pays?
Employee contribution Entire period of arrearage Employer*
Employee contribution Entire period of arrearage Employer
Interest Entire period of arrearage Possibly Employer
Actuarial cost of retirement benefit If employee retires within 24 months Employer

*Employee will receive service credit only. Contributions will be deposited into the KPERS trust fund but not credited to the employee’s account.

Example

An employee began working on February 4, 2021. On August 30, 2021, the employer realized the employee should have been a member and should have started contributing to KPERS from his or her hire date in February.

Quarters of Service Who Pays Employee Contribution?
Q1 01/10/2021 to 03/20/2021
Feb 4 (hired) to Mar 20(end Q1) 		Employer
Q2 03/21/2021 to 06/20/2021
All of Q2 		Employer
Q3 06/21/2021 to 09/20/2021
Aug 30 (error discovered)
Arrearage was 6 months, 27 days (Feb 4 - Aug 30) 		Employee pays 6/21 - 8/30
Employee pays 08/31 - 9/20
Q4 9/21/2021 to 12/31/2021 Employee pays

Since the duration of the arrearage is more than 6 months, the employer is required to pay both employee and employer contributions for each pay period between Feb 4 and Aug 30.

Interest may be assessed for arrearage period. Employer must pay actuarial cost of retirement benefit if member retires within 24 months.