Leaving Employment

Employer Manual

Revised:

2/20



If You Have Questions



  • A position that’s not temporary (less than six months)
  • A position that’s not seasonal (summer mowing, etc.)
  • Non-schools: A position in which an employee works at least 1,000 hours/year (approximately 20 hours/week)
  • Schools: A position in which an employee works at least 630 hours/year (approximately 3.5 hours/day for 180 days)
  • A position covered by Social Security

Situation:

Member on leave of absence is earning 50% or more of full pay.*

Employer Steps:

  1. Leave member on payroll
  2. Deduct KPERS contributions from member's salary
  3. Deduct optional insurance premiums if member has coverage.

*Full pay is based on regular pay, accumulated sick leave, accumulated vacation, or any combination. Full pay does not include workers’ compensation.

Situation:

Member on leave of absence is earning less than 50% of full pay for 10 consecutive days.

Employer Steps:

  1. Give member Leaving Employment Flyer
  2. Login to employer web portal (EWP)
  3. Report disability in portal
  4. Enter end date and select "Leave of Absence" as reason when member is no longer receiving compensation Quick Vid: End Dates
  5. Give member Optional Life Insurance Continuation form (KPERS-79C)

Situation:

Member returns to work after a leave of absence.

Employer Steps:

  1. Login to employer web portal (EWP)
  2. Enter end date and select "Return to Payroll" as reason - The system auto-enrolls Quick Vid: End Dates

Keep in mind: If employee leaves for health reasons, he or she maintains basic group life insurance coverage for the first 180 days, which is the waiting period for long-term disability eligibility. After 180 days, the employee must convert or port to keep coverage.

Situation:

Member on leave of absence is earning 50% or more of full pay.*

Employer Steps:

  1. Leave member on payroll
  2. Deduct KPERS contributions from member's salary
  3. Deduct optional insurance premiums if member has coverage.

*Full pay is based on regular pay, accumulated sick leave, accumulated vacation, or any combination. Full pay does not include workers’ compensation.

Situation:

Member on leave of absence is earning less than 50% of full pay for 10 consecutive days.

Employer Steps:

  1. Give member Leaving Employment Flyer
  2. Give member Optional Life Insurance Continuation form (KPERS-79C)
  3. Login (EWP)
  4. Enter end date and select "Leave of Absence" as reason when member is no longer receiving compensation Quick Vid: End Dates
  5. Give member The Standard Group Conversion Packet and The Standard Life Portability Application to continue basic life coverage

Situation:

Member returns to work after a leave of absence.

Employer Steps:

  1. Login to employer web portal (EWP)
  2. Enter end date and select "Return to Payroll" as reason - The system auto-enrolls Quick Vid: End Dates

Keep in mind: If employee leaves for health reasons, he or she maintains basic group life insurance coverage for the first 180 days, which is the waiting period for long-term disability eligibility. After 180 days, the employee must convert or port to keep coverage.

Situation:

Member is on administrative leave of absence for fewer than 10 consecutive days.

Employer Steps:

  1. Leave member on payroll
  2. Deduct KPERS contributions from member's salary
  3. Deduct optional insurance premiums if member has coverage.

*Full pay is based on regular pay, accumulated sick leave, accumulated vacation, or any combination. Full pay does not include workers’ compensation.

Situation:

Member is on administrative leave of absence (paid or unpaid) after 10 consecutive days.

Employer Steps:

  1. Give member Leaving Employment Flyer
  2. Give member Optional Life Insurance Continuation form (KPERS-79C)
  3. Login (EWP)
  4. Enter end date and select "Leave of Absence" as reason when member is no longer receiving compensation Quick Vid: End Dates
  5. Give member The Standard Group Conversion Packet and The Standard Life Portability Application to continue basic life coverage

Situation:

Member returns to work after a leave of absence.

Employer Steps:

  1. Login to employer web portal (EWP)
  2. Enter end date and select "Return to Payroll" as reason - The system auto-enrolls Quick Vid: End Dates

Keep in mind: If employee leaves for health reasons, he or she maintains basic group life insurance coverage for the first 180 days, which is the waiting period for long-term disability eligibility. After 180 days, the employee must convert or port to keep coverage.

Situation:

Member on military leave of absence

Employer Steps:

  1. Login to EWP
  2. Enter end dates and select "Military Leave" as reason Quick Vid: End Dates
  3. Give member Optional Life Insurance Continuation form (KPERS-79C)

Situation:

Member returns to work after a military leave of absence.

Employer Steps:

  1. Login to EWP
  2. Enter end dates and select "Return to Payroll" as reason - The system auto enrolls Quick Vid: End Dates

Basic Group Life Insurance continues for employees on active military duty, paid from KPERS fund.

What is a non-covered position?

  • Temporary (less than six months)
  • Seasonal (summer mowing, etc.)
  • Non-schools: A position with less than 1,000 hours per year (approximately 20 hours per week)
  • Schools: A position with less than 630 hours per year (approximately 3.5 hours a day for 180 days)
  • Not covered by Social Security

Some employees might:

  • Stay with an employer but move to a non-covered position.
  • Stay in the same position that is no longer covered.
  • Move back and forth between covered and non-covered from time to time.

It’s important to report these changes to KPERS to avoid refunds or arrearages.

Employer checklist

Benefits & contributions

Non-vested employees moving from covered positions to non-covered positions (same employer):

  • Are no longer eligible for KPERS benefits and cannot withdraw their KPERS contributions. The IRS does not consider this a “distributable event.”
  • Continue to earn interest on their previous contributions.
  • Have five years to withdraw contributions after leaving employment.

Keep in mind: If an employee moves to a non-covered position with a different employer, enter "Termination" as the reason code.

Eligibility expectations

  • Spouses who are active members of KPERS are not eligible for spouse coverage. Even if their employers are not affiliated for optional life
  • Retired members are not eligible for member coverage. They are eligible for spouse coverage
  • Only one parent may have child coverage if both parents are members.

Employer Checklist

Reminder: "Termination" is the reason code use for employees who quit, were dismissed or transferred to another KPERS employer.

Breaking School Contracts

If licensed employees resign before the end of the school year, the following applies:

  • When reporting compensation, KPERS can only accept a prorated contribution amount based on the number of days of service in the last month.
  • Do not report additional pay such as sick leave, vacation leave, etc.
  • Do not give daily per diem or daily rates of pay

For example:

Teacher’s last day is March 10. The teacher’s school contact is $48,000. Report 1/12 of the contract amount for each month in the calendar year through February $48,000/12=$4,000.

Month Compensation Contributions
January $4,000 $240 (6%)
February $4,000 $240 (6%)
March (10 days of service) $1,290.30 $77.42 (6%)
$4,000/31 (days in March) = $129.03 X 10 days of service = $1,290.30

Employer Checklist

Reminder: An end date submitted anywhere in the EWP will populate all other areas, including the optional life premium report. There’s no need to do an Optional Life termination or enter a separate end date.

Employer Checklist

  • Give member an Optional Life Insurance Continuation form (KPERS-79C).
  • Login to the EWP.
  • KPERS & KP&F employers: Complete Report of Disability on portal.
  • Have employees in a service purchases contact KPERS as soon as possible.

Behind the scenes: We notify our disability service provider when we receive a report of disability. The service provider then sends forms to the member for proof of disability.

Employees considering retirement should:

  • Attend a KPERS or KP&F pre-retirement seminar.
  • Find out when they are eligible to retire.
  • Calculate a retirement benefit estimate.
  • Choose a retirement payment option.
  • Complete the Application for Retirement Benefits (KPERS-15) and send it to KPERS.

Employer Checklist

Behind the scenes: KPERS will enter the application and then send a certification request to the EWP with a notification to your regular email. When you complete the retirement certification, KPERS will finish processing the retirement.

Working After Retirement

No Prearrangements

Active KPERS members and KPERS employers cannot make arrangements for the member to return to work after retirement. Retired KPERS members and KPERS employers must wait either 60 or 180 days before arranging to return (length of waiting period based on employee’s age at retirement).

No Employee Contributions

KPERS retirees who work for a KPERS employer are not considered active members and will not make contributions to KPERS again. But as an employer, you will report wages and pay contributions for retirees you’ve hired in KPERS-covered positions.

Working-After-Retirement Details
Types of LOA Coverage affected & employee options
Employee Health Covered for 180 days, paid from KPERS fund
After 180 days, employee must convert or port to keep coverage
Military Coverage continues during active military duty, paid from KPERS fund
All others Coverage ends; employee must convert or port to keep coverage.
Return to work Reinstated

What about a 9-month school schedule? Basic and optional coverage is continued during the summer months for school employees. Premium payments are deducted in advance for optional coverage.

Optional Life Insurance

Types of LOA Coverage affected & employee options
Employee Health (under age 65) Coverage ends with option to continue on self-pay basis until employee recovers, retires, reaches age 65 or withdraws from KPERS, whichever is first – employee must convert or port to keep coverage
Age 65 & older Coverage ends & employee must covert or port to keep coverage
Others Coverage ends with option to continue up to 12 months on a self-pay basis – after 12 months, employee must convert or port to keep coverage
Return to work Coverage reinstated if
  • Employee continued coverage within 60 days of leaving
  • Employee returned to work within 3 months
Optional terminated if
  • Employee did NOT continue coverage & returned to work after 3 months
    Can reapply, but no GI1 and must submit EOI.2
Military Coverage ends with option to continue up to 16 months on self-pay basis — employee must convert or port to keep coverage
Return to work Coverage reinstated if
Employee returned to work within 5 years, per USERRA3 even if employee did not previously elect continuation

1GI = Guaranteed Insurance

2EOI = Evidence of Insurability

3USERRA = Uniformed Services Employment and Reemployment Rights Act

Optional life insurance

Optional life ends when employment ends. In many cases, employees can elect to continue on a self-pay basis, convert or port optional life coverage within 60 days from the last day of the month in which the premium was paid.

Basic life insurance

Basic life coverage ends when employment ends.* Employees can elect to convert or port basic life coverage within 60 days from the last day of the pay period in which the employee goes off payroll.

When employees leave KPERS-covered employment, they can choose to:

  • Convert (change) their KPERS group life policy into individual whole-life policy, or
  • Port (make portable) their KPERS group term life policy and take it with them.

Did you know? Employees can convert or port their basic life insurance or their optional life insurance policies or both. Give employees The Standard Group Conversion Packet and Life Portability Application for rates, restrictions and other information

Spouse coverage

Employees can continue any current coverage for their spouse. Spouse coverage can only be ported if they also port some of their own coverage. Spouse coverage may be converted to a whole life policy regardless of whether employees covert or port their own coverage.

Converting to an individual policy

An employee can convert his or her coverage to an individual policy within:

  • Basic 60 days from last day of pay period which employee goes off payroll
  • Optional 60 days from last day of month in which premium was paid

This will change the employee's group term insurance to an individual whole life policy.

The employee can convert up to the full amount of his or her current insurance coverage without proof of good health but cannot convert anymore than he or she already has. The employee can covert spouse coverage regardless of whether he covert his own.

Completing the life insurance conversion form

The employee fills in his or her personal information in the section “To Be Completed by Member” of the conversion form. The conversion form will not be accepted without the employee’s signature and the first premium payment. You will complete the conversion form section: “To Be Completed By Designated Agent”

Portability (porting life insurance)

When leaving KPERS-covered employment, members have the option to port their term life insurance coverage by completing The Standard Life Portability Application. You do not need to sign the form.

  • Portability allows employees to continue part or all of their current basic optional group life insurance coverage as term insurance.
  • Employees can port any spousal coverage if they also port their own coverage.
  • Portable group term life insurance provides a more limited benefit than whole-life insurance
  • The cost is generally less expensive.
  • Employees must “port” their coverage within: – (Basic) 60 days from the last day of the pay period in which the employee goes off payroll. – (Optional) 60 days from the last day of the month in which the premium was paid.
  • All employees who are under age 80 may port their coverage
  • Employees do not have to provide proof of good health.
  • Employees are not eligible to port coverage if they were not actively at work on their last day due sickness or injury. To continue, these employees must convert coverage.
  • The coverage reduces to 65% at age 65.
  • Coverage ends at age 80.
  • Premiums increase as the employee gets older.

A vested employee who leaves a KPERS-covered position before retirement has two options:

  1. Leave contributions in KPERS, earning interest, and then receive a monthly retirement benefit when eligible.
  2. Withdraw contributions and interest, using the Application for Withdrawal of Contributions form (KPERS-13). Employees must wait 31 days after ending employment to withdraw.

All non-vested employees who leave covered positions must withdraw contributions and interest within five years. KPERS 1 and KPERS 2 employee contributions stop earning interest after five years, and KPERS 3 contributions stop earning interest after two years.

Employer contributions are part of the KPERS trust fund and are not credited to member accounts

Remember: A non-vested employee who moves from a covered position to a non-covered position (same employer) can no longer contribute to KPERS, but cannot withdraw his/her KPERS contributions. The IRS does not consider this a “distributable event.” His or her contributions will continue to earn interest while the employee is in the non-covered position at your employer.