Session of 2025
SENATE BILL No. 282
By Committee on Assessment and Taxation
2-28
1AN ACT concerning retirement and pensions; relating to the Kansas public
2employees retirement system; enacting the Kansas retirement
3investment and savings plan act; establishing terms, conditions and
4requirements related thereto; providing for the plan document,
5membership elections, benefits, contributions, distributions and
6prospective plan changes by the legislature; authorizing an employer
7contribution rate to amortize the actuarial costs of the defined benefit
8plan; directing the pooled money investment board to loan moneys to
9provide startup and related administrative costs of the plan upon
10approval of the state finance council; creating the Kansas public
11employees retirement system defined contribution fund; amending
12K.S.A. 2024 Supp. 74-4920 and repealing the existing section.
13
14Be it enacted by the Legislature of the State of Kansas:
15New Section 1. (a) The provisions of sections 1 through 15, and
16amendments thereto, shall be known and may be cited as the Kansas
17retirement investment and savings plan act (KRISP). Such act shall be
18effective on and after July 1, 2027.
19(b) Any employee who is first employed by a participating employer
20on or after July 1, 2027, and who elects to participate in the plan or fails to
21make an election pursuant to section 5, and amendments thereto, shall be a
22member of the plan under the provisions of this act as of the first day of
23employment of such employee with such participating employer.
24(c) (1) The provisions of this act shall not apply to members of the
25Kansas police and firemen's retirement system, K.S.A. 74-4951 et seq.,
26and amendments thereto, the retirement system for judges, K.S.A. 20-2601
27et seq., and amendments thereto, and security officers as provided in
28K.S.A. 74-4914a, and amendments thereto.
29(2) The provisions of this act shall not apply to members of the
30Kansas public employees retirement system as provided in K.S.A. 74-4901
31et seq., 74-49,201 et seq., and 74-49,301 et seq., and amendments thereto,
32first employed by a participating employer prior to July 1, 2027, except for
33members who elect to participate in the Kansas retirement investment and
34savings plan pursuant to section 5, and amendments thereto.
35New Sec. 2. Unless the context requires otherwise, terms that are
36used in this act have the meanings set forth in K.S.A. 74-4902, and
1amendments thereto, and the following definitions apply:
2(a) "Act" means the Kansas retirement investment and savings plan
3act, sections 1 through 15, and amendments thereto;
4(b) "active plan member" or "plan member" means a Kansas
5retirement investment and savings plan member who is actively employed
6by a participating employer;
7(c) "covered position" means a position with an affiliated employer
8that is eligible for membership in the Kansas public employees retirement
9system pursuant to the provisions of K.S.A. 74-4901 et seq., and
10amendments thereto;
11(d) "defined benefit plan" means the defined benefit plan for the
12Kansas public employees retirement system, K.S.A. 74-4901 et seq., 74-
1349,201 et seq. and 74-49,301 et seq., and amendments thereto, the Kansas
14police and firemen's retirement system, K.S.A. 74-4951 et seq., and
15amendments thereto, and the retirement system for judges, K.S.A. 20-2601
16et seq., and amendments thereto;
17(e) "deferred compensation plan" means the same as defined in
18K.S.A. 74-49b08, and amendments thereto;
19(f) "employee" means the same as defined in K.S.A. 74-4902 and 74-
204932, and amendments thereto, except that the provisions of this act shall
21apply only to employees who:
22(1) (A) Are first employed by a participating employer on or after
23July 1, 2027, or are employees of a participating employer that affiliates on
24or after July 1, 2027; and
25(B) elect to participate in the plan or fail to make an election pursuant
26to section 5(a)(1), and amendments thereto; or
27(2) (A) are first employed by a participating employer prior to July 1,
282027; and
29(B) elect to become a member of the plan pursuant to section 5(a)(2),
30and amendments thereto;
31(g) "first employed" means an employee who:
32(1) Has not been an employee in a covered position of any
33participating employer prior to July 1, 2027, and is employed by a
34participating employer in a covered position on or after July 1, 2027;
35(2) is a former member of the system who withdrew contribution
36accounts before July 1, 2027, and who is again employed by a
37participating employer in a covered position on or after July 1, 2027; or
38(3) was an inactive nonvested member and who is again employed by
39a participating employer in a covered position on or after July 1, 2027;
40(h) "inactive nonvested member" means a member who has
41terminated employment with a participating employer and who does not
42have a vested retirement benefit in the system on July 1, 2027;
43(i) "plan" or "Kansas retirement investment and savings plan" means
1the plan established by section 3, and amendments thereto; and
2(j) "qualified Roth contribution program" means a program described
3in section 402A(b)(1) of the federal internal revenue code that meets the
4requirements of section 402A(b)(2) of the federal internal revenue code.
5New Sec. 3. (a) (1) The board shall establish a separate Kansas
6retirement investment and savings plan in accordance with the provisions
7of this act. The plan and related trust shall be established with the primary
8objective of providing a share of the retirement income needed to replace a
9member's preretirement standard of living throughout retirement following
10a full career of employment and to meet participating employers'
11objectives for recruiting and retaining qualified employees. Maintaining
12the member's standard of living in retirement shall include income from
13the plan in addition to social security, personal savings and other
14retirement arrangements including from nonparticipating employers. The
15plan shall be established as a pension plan for the exclusive benefit of
16members and their beneficiaries and as a qualified governmental plan
17pursuant to sections 401(a) and 414(d) of the federal internal revenue code
18and its implementing regulations. Retirement accounts shall be established
19for each plan member. Assets of the plan shall be held in trust for the
20exclusive benefit of participants and their beneficiaries. The plan is
21established in addition to any retirement, pension, deferred compensation
22or other benefit plan administered by the state or a political subdivision
23thereof.
24(2) As a component of the Kansas retirement investment and savings
25plan, the board shall establish a deferred compensation plan in accordance
26with section 457 of the federal internal revenue code. Deferred
27compensation accounts shall be established for each plan member to allow
28for additional elective contributions by members of the Kansas retirement
29investment and savings plan. All moneys deferred, transferred or rolled
30over in accordance with the provisions of the deferred compensation plan
31shall be held in trust in accordance with section 457 of the federal internal
32revenue code for the exclusive benefit of participants and their
33beneficiaries. All employees subject to the provisions of this act shall
34participate in the deferred compensation plan unless an employee elects, in
35a manner prescribed by the board, not to participate in such plan. Any
36amount of the member's salary or compensation that is deferred on a pre-
37tax basis shall not be subject to state income taxes for the year in which
38such sum is contributed but shall be subject to applicable state income
39taxes for the year in which distributions are received by the member. The
40board may utilize the Kansas public employees deferred compensation act,
41K.S.A. 74-49b07 through 74-49b15, and amendments thereto, to
42implement the provisions of this act solely or as one of two or more 457
43plans.
1(3) The board shall establish a qualified Roth contribution program
2for members in both the Kansas retirement investment and savings plan
3and the deferred compensation plan. Any amounts contributed to a
4qualified Roth contribution program shall be subject to state withholding
5and income taxes for the year in which such sum is contributed to the
6program but shall not be subject to applicable state income taxes for the
7year in which distributions are received by the member, unless the
8provisions of article 32 of chapter 79 of the Kansas Statutes Annotated,
9and amendments thereto, provide otherwise.
10(b) The board may enter into agreements with approved insurers,
11investment managers or other contracting parties whereby benefits or
12investment services under the Kansas retirement investment and savings
13plan would be made available to participants. The board may enter into an
14agreement with one or more qualified private firms for consolidated billing
15services, participant enrollment services, communications services,
16participant account recordkeeping services and other services related to the
17administration of the Kansas retirement investment and savings plan.
18(c) No significant costs shall be incurred by the state as a result of the
19administration of this act unless such costs are recovered by the following
20means: (1) A service charge collected from all participants; or (2) credit
21allowances or reimbursement of specified plan expenses as provided under
22agreements with one or more qualified private firms entered into pursuant
23to subsection (b). The amount of any such significant costs incurred and to
24be recovered by the state shall be determined by the board.
25(d) (1) Subject to the provisions of this section, the pooled money
26investment board is authorized and directed to loan to the Kansas public
27employees retirement system sufficient moneys to provide startup and
28related administrative costs of this act upon approval of such loan by the
29state finance council acting on this matter, which is hereby characterized
30as a matter of legislative delegation and subject to the guidelines
31prescribed in K.S.A. 75-3711c(c), and amendments thereto.
32(2) No loan shall be made unless the terms thereof have been
33approved by the director of the budget. A copy of the terms of the loan
34shall be submitted to the director of legislative research. The pooled
35money investment board is authorized and directed to use any moneys in
36the operating accounts, investment accounts or other investments of the
37state of Kansas to provide the funds for such loan. Each such loan shall
38bear interest at a rate equal to the net earnings rate of the pooled money
39investment portfolio at the time of the making of such loan. Such loan
40shall not be deemed to be an indebtedness or debt of the state of Kansas
41within the meaning of section 6 of article 11 of the constitution of the state
42of Kansas.
43(3) Upon certification of the amount of each loan authorized pursuant
1to this subsection to the executive director of the Kansas public employees
2retirement system, the pooled money investment board shall transfer each
3such amount from the state bank account or accounts prescribed in this
4subsection to the Kansas public employees retirement fund.
5(4) The principal and interest of each loan authorized pursuant to this
6subsection shall be repaid in payments payable on or before June 30, 2030,
7or June 30 of each subsequent year in which a loan to the system has
8occurred pursuant to this section.
9(5) The board of trustees shall report annually on the status of any
10loan made pursuant to this section to the joint committee on pensions,
11investments and benefits.
12(e) The board is authorized to negotiate and enter into contracts with
13qualified insurers, investment managers and other contracting parties for
14the purposes of implementing and providing essential services for the
15Kansas retirement investment and savings plan, including acquisition of
16actuarial, investment, consulting, auditing and other services necessary
17therefor. Contracts entered into under this act shall be subject to the
18provisions of K.S.A. 74-4909(15), and amendments thereto, and shall not
19be negotiated in accordance with the provisions of K.S.A. 75-37,102, and
20amendments thereto, or K.S.A. 75-37,132, and amendments thereto.
21New Sec. 4. The legislature may, from time to time, prospectively
22change the statutory provisions governing the plan and expressly reserve
23the right to do so. The state of Kansas shall not be responsible for any loss
24incurred by any member under the plan established pursuant to this act.
25New Sec. 5. (a) (1) An employee who is first employed by a
26participating employer on or after July 1, 2027, may elect to become a
27member of the Kansas retirement investment and savings plan or a
28member of the Kansas public employees retirement system act of 2015,
29K.S.A. 74-49,301 et seq., and amendments thereto, by making an election
30within 30 days from the first day of employment with a participating
31employer.
32(2) Except as otherwise provided in this act, an active member of the
33defined benefit plan on July 1, 2027, or an inactive vested member of the
34defined benefit plan who is again employed by a participating employer in
35a covered position on or after July 1, 2027, may elect to become a member
36of the Kansas retirement investment and savings plan by making an
37election within a 30-day period established by the board.
38(b) (1) Elections made pursuant to this section shall be made on a
39form and in a manner prescribed by the board.
40(2) (A) A defined benefit plan member failing to make an election
41prescribed by this section remains a member of the defined benefit plan.
42(B) An employee who is first employed by a participating employer
43on or after July 1, 2027, failing to make an election prescribed by this
1section shall become a member of the Kansas retirement investment and
2savings plan under the provisions of this act.
3(3) An election under this section, including the default election
4pursuant to subsection (b)(2), is a one-time irrevocable election.
5(4) Any election made pursuant to this section is for all of such
6member's credited service and for all employee and employer
7contributions. An election to become a Kansas retirement investment and
8savings plan member permanently terminates active membership in the
9defined benefit plan and the service of such member on and after July 1,
102027, in the Kansas retirement investment and savings plan shall not be
11credited for the purposes of the defined benefit plan. The system shall
12calculate the actuarial present value of such member's accrued retirement
13benefit for all credited service prior to July 1, 2027, and shall transfer a
14lump-sum amount equal to such actuarial present value to such member's
15rollover account. For members of the defined benefit plan under K.S.A.
1674-49,301 et seq., and amendment thereto, the amount transferred shall be
17the greater of: (A) An amount equal to the value of the member's annuity
18savings account and retirement annuity account; or (B) the actuarial
19present value of such member's accrued retirement benefit. The actuarial
20present value shall be determined by the actuary using the actuarial
21assumptions and tables currently in use by the system and the member's
22attained age.
23(c) A member in either the defined benefit plan or the Kansas
24retirement investment and savings plan who becomes inactive after an
25election under this section and who returns to active membership remains
26in the plan previously elected.
27(d) A member of the defined benefit plan who is subject to a domestic
28relations order or an execution or income-withholding order may not
29transfer to the Kansas retirement investment and savings plan unless the
30order is modified to apply under the Kansas retirement investment and
31savings plan.
32(e) (1) A member of the defined benefit plan who is purchasing
33service credit through installment payments, either made directly to the
34board or pursuant to a payroll deduction agreement, shall not transfer
35membership to the Kansas retirement investment and savings plan unless
36the member first completes the contract for purchase of service credit.
37(2) A member who files an election to transfer membership may
38make a lump-sum payment for up to the balance of the service credit
39remaining to be purchased prior to transferring, subject to the limitations
40of section 415 of the federal internal revenue code. The lump-sum
41payment, unless made by a rollover, shall be made with after-tax dollars.
42(f) (1) Employee and employer contributions shall be made to the
43retirement system during any 30-day election window and the system shall
1hold such contributions until an election is made, including the default
2election.
3(2) If an employee elects to become a member of the Kansas
4retirement investment and savings plan pursuant to subsection (a)(1),
5employee contributions made during the 30-day election window,
6including any interest earnings thereon, shall be credited as soon as
7practicable by the system to the member's mandatory contribution account.
8Employer contributions made during the 30-day election window shall be
9credited as soon as practicable by the system to the member's employer
10contribution account.
11(3) If an employee elects to become a member of the Kansas public
12employees retirement system act of 2015 pursuant to subsection (a)(1),
13employee contributions made during the 30-day election window,
14including any interest earnings thereon, shall be credited as soon as
15practicable by the system to the member's annuity savings account.
16Employer contributions made during the 30-day election window shall be
17credited as soon as practicable by the system to the member's retirement
18annuity account.
19New Sec. 6. The board shall accept the rollover of contributions and
20the income on those contributions from another eligible retirement plan to
21the member's rollover account only to the extent allowed under the federal
22internal revenue code.
23New Sec. 7. (a) A Kansas retirement investment and savings plan
24member's mandatory contribution account includes the member's
25contributions and the income on those contributions and is vested from the
26date that the employee becomes a member of the plan.
27(b) A Kansas retirement investment and savings plan member's
28deferred compensation account includes the member's elective
29contributions and the income on those contributions and is vested from the
30date that the employee becomes a member of the plan.
31(c) A Kansas retirement investment and savings plan member's
32employer contribution account includes the employer's contributions and
33the income on those contributions and is vested only when the member has
34a total of five years of participating service in the Kansas retirement
35investment and savings plan.
36(d) A Kansas retirement investment and savings plan member's
37rollover account includes the member's rollovers of contributions made
38pursuant to section 5 or 6, and amendments thereto, and income on those
39contributions and are vested from the date that the contributions are
40credited to the account.
41(e) If the Kansas retirement investment and savings plan member's
42employer contribution account is not vested upon termination of plan
43membership, as provided in this section, the employer contributions and
1income are forfeited as provided in section 8, and amendments thereto.
2New Sec. 8. (a) (1) An active Kansas retirement investment and
3savings plan member shall contribute 6% of compensation to the member's
4mandatory contribution account.
5(2) Except as provided in subsection (d), an active plan member shall
6initially contribute 1% of compensation to the member's deferred
7compensation account and such contribution rate shall increase annually
8by 1% of the active plan member's compensation until such active plan
9member reaches a maximum contribution rate of 10% of compensation.
10All contributions to a member's deferred compensation account under this
11section shall be subject to the contribution limits under sections 415 and
12457 of the federal internal revenue code. The board may implement this
13subsection as an eligible automatic contribution arrangement under section
14414(w) of the federal internal revenue code.
15(b) (1) All contributions under subsection (a)(1) shall be picked up by
16the employer via a salary reduction as provided in section 414(h)(2) of the
17federal internal revenue code. An employer shall not pick up such
18contributions without a corresponding salary reduction as provided in
19section 414(h)(2) of the federal internal revenue code.
20(2) Each participating employer shall establish a system of regular
21payroll deductions to defer each payroll period the amounts from the
22salary or compensation of each employee who is a member of the deferred
23compensation plan in accordance with this act and the applicable
24provisions of the federal internal revenue code.
25(c) An active plan member's participating employer shall contribute
26the following to each member's employer contribution account:
27(1) 4% of compensation to the active plan member's employer
28contribution account; and
29(2) an additional 0.5% of compensation to the active plan member's
30employer contribution account if such member contributes 1% of
31compensation to the deferred compensation plan or an additional 1% of
32compensation if such member contributes 2% or more of compensation to
33the deferred compensation plan.
34(d) An active plan member shall be permitted to adjust the amount of
35elective contributions to such member's deferred compensation account at
36least annually or on a more frequent basis as established by the board. All
37contribution elections shall be made in 1% increments. An active plan
38member shall be permitted to stop making contributions to such member's
39deferred compensation account. An active plan member shall be permitted
40to resume making contributions to such member's deferred compensation
41account following any previous stoppage. The board shall develop and
42make available to all plan members an electronic means for making
43contribution elections to a member's deferred compensation account.
1(e) Forfeitures of employer contributions and investment income on
2the employer contributions may not be used to increase a plan member's
3retirement account. The board shall allocate the forfeitures under this
4section to meet the plan's administrative expenses, including startup
5expenses. The board may use forfeitures to reduce the employer
6contribution obligation once expenses are met.
7New Sec. 9. (a) (1) The board shall create an investment policy
8structured to meet the primary objective of providing a share, in addition
9to social security, personal savings and other retirement arrangements, of
10the retirement income needed to replace a member's preretirement standard
11of living throughout retirement following a full career of employment. The
12board shall require in any agreement with entities pursuant to section 3,
13and amendments thereto, that the following investment alternatives under
14the Kansas retirement investment and savings plan are offered to members,
15including, but not limited to:
16(A) A government securities investment fund;
17(B) a fixed income index investment fund;
18(C) a common stock index investment fund;
19(D) a small capitalization stock index investment fund;
20(E) an international stock index investment fund; and
21(F) hybrid funds mixing and matching various investment funds,
22tailored to projected retirement years.
23(2) (A) The board shall select an index that is a commonly recognized
24index comprised of common stock the aggregate market value of which is
25a reasonably complete representation of the United States equity markets.
26(B) The common stock index investment fund shall be invested in a
27portfolio designed to replicate the performance of the index selected under
28subparagraph (A). The portfolio shall be designed such that, to the extent
29practicable, the percentage of the large capitalization stock index
30investment fund that is invested in each stock is the same as the percentage
31determined by dividing the aggregate market value of all shares of that
32stock by the aggregate market value of all shares of all stocks included in
33such index.
34(3) (A) The board shall select an index that is a commonly recognized
35index comprised of common stock, the aggregate market value of which
36represents the United States equity markets excluding the common stocks
37included in the common stock index investment fund.
38(B) The small capitalization stock index investment fund shall be
39invested in a portfolio designed to replicate the performance of the index
40in subparagraph (A). The portfolio shall be designed such that, to the
41extent practicable, the percentage of the small capitalization stock index
42investment fund that is invested in each stock is the same as the percentage
43determined by dividing the aggregate market value of all shares of that
1stock by the aggregate market value of all shares of all stocks included in
2such index.
3(4) (A) The board shall select an index that is a commonly recognized
4index comprised of stock, the aggregate market value of which is a
5reasonably complete representation of the international equity markets
6excluding the United States equity markets.
7(B) The international stock index investment fund shall be invested in
8a portfolio designed to replicate the performance of the index in
9subparagraph (A). The portfolio shall be designed such that, to the extent
10practicable, the percentage of the international stock index investment
11fund that is invested in each stock is the same percentage determined by
12dividing the aggregate market value of all shares of that stock by the
13aggregate market value of all shares of all stocks included in such index.
14(b) The board shall establish a default investment option for any plan
15member who does not have an effective investment direction. The board
16may utilize a hybrid investment fund established pursuant to this section as
17the default investment fund.
18(c) Assets within each member's account shall be invested as directed
19by the member within the investment alternatives established by the board.
20(d) A plan member may elect the investment funds and alternatives
21referred to in this section into which the sums in the member's accounts are
22to be invested or reinvested. The board shall develop and make available
23to all plan members an electronic means for investment allocation
24elections. Elections to allocate existing account balances among the
25various investment alternatives referred to in this section shall be
26permitted on a daily basis. Elections to allocate future contributions among
27the various investment alternatives referred to in this section shall be
28permitted on a monthly basis. All investment elections shall be made in
291% increments. The sum of the percentages elected for all investment
30alternatives shall equal 100%.
31New Sec. 10. Any time after termination of service, a plan member or
32the plan member's beneficiary may terminate plan membership by filing a
33written application with the board and removing the plan member's vested
34account balance from the plan through any combination of the following
35payout options, each of which is subject to the provisions of the plan
36document and the federal internal revenue code and the applicable
37regulations of the federal internal revenue service:
38(a) A direct rollover to an eligible retirement plan;
39(b) an indirect rollover to an eligible retirement plan;
40(c) a lump-sum distribution of the plan member's vested account
41balance; or
42(d) an optional form of distribution offered by the board under section
4311, and amendments thereto.
1New Sec. 11. (a) Subject to the provisions of the plan document, a
2plan member, after termination of service, may leave the plan member's
3vested account balance in the plan, and the plan member is eligible for a
4distribution as provided in this section.
5(b) (1) After termination of service and upon filing a written
6application with the board, a plan member may select any distribution
7option provided by the plan document. The board shall make available
8within the plan lifetime annuity options from an insurer, including:
9(A) Single-life;
10(B) joint and survivor;
11(C) period certain;
12(D) qualified longevity annuity contracts; and
13(E) other annuity forms as the board may choose to provide.
14(2) The board shall create a default distribution option using a
15lifetime annuity form.
16(c) A plan member who is less than 65 years of age, or 701/2 years of
17age if the member was born before July 1, 1949, who returns to service
18may not continue to receive a distribution under this section while actively
19employed in a covered position except as may otherwise be required under
20an applicable annuity contract provided under the plan.
21(d) The plan document shall provide that distributions shall comply
22with the minimum distribution requirements established in the federal
23internal revenue code and applicable under K.S.A. 74-49,123, and
24amendments thereto.
25(e) The plan document may specify minimum account balances for
26purposes of allowing benefit payment options and rollovers in accordance
27with the federal internal revenue code.
28New Sec. 12. A plan member's beneficiary shall be determined as
29provided in the defined benefit plan regulations. Upon filing a written
30application with the board after the death of a plan member, the plan
31member's beneficiary is entitled to the plan member's vested account
32balance.
33New Sec. 13. Before termination of service, a plan member shall not
34receive a refund of any portion of the plan member's vested account
35balance.
36New Sec. 14. A Kansas retirement investment and savings plan
37member shall be eligible for death and disability benefits provided to
38members of the defined benefit plan under K.S.A. 74-4927, and
39amendments thereto.
40New Sec. 15. There is hereby created in the state treasury the Kansas
41public employees retirement system defined contribution fund. The fund
42shall be administered by the Kansas public employees retirement system in
43accordance with the provisions of this act. All expenditures from the fund
1shall be made in accordance with appropriation acts upon warrants of the
2director of accounts and reports issued pursuant to vouchers approved by
3the chairperson of the board, the executive director of the system or the
4executive director's designee.
5Sec. 16. K.S.A. 2024 Supp. 74-4920 is hereby amended to read as
6follows: 74-4920. (1) (a) Upon the basis of each annual actuarial valuation
7and appraisal as provided for in K.S.A. 74-4908(3)(a), and amendments
8thereto, the board shall certify, on or before July 15 of each year, to the
9division of the budget in the case of the state and to the agent for each
10other participating employer an actuarially determined estimate of the rate
11of contribution that will be required, together with all accumulated
12contributions and other assets of the system, to be paid by each such
13participating employer to pay all liabilities that shall exist or accrue under
14the system, including amortization of the actuarial accrued liability as
15determined by the board. The board shall determine the actuarial cost
16method to be used in annual actuarial valuations, to determine the
17employer contribution rates that shall be certified by the board. Such
18certified rate of contribution, amortization methods and periods and
19actuarial cost method shall be based on the standards set forth in K.S.A.
2074-4908(3)(a), and amendments thereto, and shall not be based on any
21other purpose outside of the needs of the system.
22(b) (i) For employers affiliating on and after January 1, 1999, upon
23the basis of an annual actuarial valuation and appraisal of the system
24conducted in the manner provided for in K.S.A. 74-4908, and amendments
25thereto, the board shall certify, on or before July 15 of each year to each
26such employer an actuarially determined estimate of the rate of
27contribution that shall be required to be paid by each such employer to pay
28all of the liabilities that shall accrue under the system from and after the
29entry date as determined by the board, upon recommendation of the
30actuary. Such rate shall be termed the employer's participating service
31contribution and shall be uniform for all participating employers. Such
32additional liability shall be amortized as determined by the board. For all
33participating employers described in this section, the board shall determine
34the actuarial cost method to be used in annual actuarial valuations to
35determine the employer contribution rates that shall be certified by the
36board.
37(ii) The board shall determine for each such employer separately an
38amount sufficient to amortize all liabilities for prior service costs that shall
39have accrued at the time of entry into the system. On the basis of such
40determination the board shall annually certify to each such employer
41separately an actuarially determined estimate of the rate of contribution
42that shall be required to be paid by that employer to pay all of the
43liabilities for such prior service costs. Such rate shall be termed the
1employer's prior service contribution.
2(c) On and after July 1, 2027, the board shall certify a contribution
3rate required to amortize the unfunded actuarial liability of the defined
4benefit plan. Such certified rate of contribution, amortization methods,
5periods and actuarial cost method shall be based on the standards set
6forth in K.S.A. 74-4908(3)(a), and amendments thereto, and shall not be
7based on any other purpose outside of the needs of the system. Each
8participating employer shall appropriate and pay such certified
9contribution rate as applied to the total compensation of employees
10participating in the Kansas retirement investment and savings plan act
11and the defined benefit plan.
12(2) The division of the budget and the governor shall include in the
13budget and in the budget request for appropriations for personal services
14the sum required to satisfy the state's obligation under this act as certified
15by the board and shall present the same to the legislature for allowance and
16appropriation.
17(3) Each other participating employer shall appropriate and pay to the
18system a sum sufficient to satisfy the obligation under this act as certified
19by the board.
20(4) Each participating employer is hereby authorized to pay the
21employer's contribution from the same fund that the compensation for
22which such contribution is made is paid from or from any other funds
23available to it for such purpose. Each political subdivision, other than an
24instrumentality of the state, that is by law authorized to levy taxes for other
25purposes, may levy annually at the time of its levy of taxes, a tax that may
26be in addition to all other taxes authorized by law for the purpose of
27making its contributions under this act and, in the case of cities and
28counties, to pay a portion of the principal and interest on bonds issued
29under the authority of K.S.A. 12-1774, and amendments thereto, by cities
30located in the county, which tax, together with any other fund available,
31shall be sufficient to enable it to make such contribution. In lieu of levying
32the tax authorized in this subsection, any taxing subdivision may pay such
33costs from any employee benefits contribution fund established pursuant to
34K.S.A. 12-16,102, and amendments thereto. Each participating employer
35that is not by law authorized to levy taxes as described above, but that
36prepares a budget for its expenses for the ensuing year and presents the
37same to a governing body that is authorized by law to levy taxes as
38described above, may include in its budget an amount sufficient to make
39its contributions under this act, which may be in addition to all other taxes
40authorized by law. Such governing body to which the budget is submitted
41for approval, may levy a tax sufficient to allow the participating employer
42to make its contributions under this act, which tax, together with any other
43fund available, shall be sufficient to enable the participating employer to
1make the contributions required by this act.
2(5) (a) The rate of contribution certified to a participating employer as
3provided in this section shall apply during the fiscal year of the
4participating employer that begins in the second calendar year following
5the year of the actuarial valuation.
6(b) (i) Except as specifically provided in this section, for fiscal years
7commencing in calendar year 1996 and in each subsequent calendar year,
8the rate of contribution certified to the state of Kansas shall in no event
9exceed the state's contribution rate for the immediately preceding fiscal
10year by more than 0.2% of the amount of compensation upon which
11members contribute during the period.
12(ii) Except as specifically provided in this subsection, for the fiscal
13years commencing in the following calendar years, the rate of contribution
14certified to the state of Kansas and to the participating employers under
15K.S.A. 74-4931, and amendments thereto, shall in no event exceed the
16state's contribution rate for the immediately preceding fiscal year by more
17than the following amounts expressed as a percentage of compensation
18upon which members contribute during the period: (A) For the fiscal year
19commencing in calendar years 2010 through 2012, an amount not to
20exceed more than 0.6% of the amount of the immediately preceding fiscal
21year; (B) for the fiscal year commencing in calendar year 2013, an amount
22not to exceed more than 0.9% of the amount of the immediately preceding
23fiscal year; (C) for the fiscal year commencing in calendar year 2014, an
24amount not to exceed more than 1% of the amount of the immediately
25preceding fiscal year; (D) for the fiscal year commencing in calendar year
262015, the employer rate of contribution shall be 10.91%; (E) for the fiscal
27year commencing in calendar year 2016, the employer rate of contribution
28shall be 10.81%, except as provided by section 37(b) of chapter 54 of 2017
29Session Laws of Kansas, and amendments thereto, for the participating
30employers under K.S.A. 74-4931, and amendments thereto; (F) for the
31fiscal year commencing in calendar year 2017, the employer rate of
32contribution shall be 12.01%; (G) for the fiscal year commencing in
33calendar year 2021, the employer rate of contribution shall be 13.33%; (H)
34for the fiscal year commencing in calendar year 2022, the employer rate of
35contribution shall be 13.11%; and (I) in each subsequent calendar year, an
36amount not to exceed more than 1.2% of the amount of the immediately
37preceding fiscal year.
38(iii) Except as specifically provided in this section, for fiscal years
39commencing in calendar year 1997 and in each subsequent calendar year,
40the rate of contribution certified to participating employers other than the
41state of Kansas shall in no event exceed such participating employer's
42contribution rate for the immediately preceding fiscal year by more than
430.15% of the amount of compensation upon which members contribute
1during the period.
2(iv) Except as specifically provided in this subsection, for the fiscal
3years commencing in the following calendar years, the rate of contribution
4certified to participating employers other than the state of Kansas shall in
5no event exceed the contribution rate for such employers for the
6immediately preceding fiscal year by more than the following amounts
7expressed as a percentage of compensation upon which members
8contribute during the period: (A) For the fiscal year commencing in
9calendar years 2010 through 2013, an amount not to exceed more than
100.6% of the amount of the immediately preceding fiscal year; (B) for the
11fiscal year commencing in calendar year 2014, an amount not to exceed
12more than 0.9% of the amount of the immediately preceding fiscal year;
13(C) for the fiscal year commencing in calendar year 2015, an amount not
14to exceed more than 1% of the amount of the immediately preceding fiscal
15year; (D) for the fiscal year commencing in calendar year 2016, an amount
16not to exceed more than 1.1% of the amount of the immediately preceding
17fiscal year; and (E) for the fiscal year commencing in calendar year 2017,
18and in each subsequent calendar year, an amount not to exceed more than
191.2% of the amount of the immediately preceding fiscal year. On and after
20July 1, 2027, for the purposes of this section, member compensation shall
21include compensation of members of the Kansas retirement investment and
22savings plan established under sections 1 through 15, and amendments
23thereto.
24(v) As part of the annual actuarial valuation, there shall be a separate
25employer rate of contribution calculated for the state of Kansas, a separate
26employer rate of contribution calculated for participating employers under
27K.S.A. 74-4931, and amendments thereto, a combined employer rate of
28contribution calculated for the state of Kansas and participating employers
29under K.S.A. 74-4931, and amendments thereto, and a separate employer
30rate of contribution calculated for all other participating employers.
31(vi) There shall be a combined employer rate of contribution certified
32to the state of Kansas and participating employers under K.S.A. 74-4931,
33and amendments thereto. There shall be a separate employer rate of
34contribution certified to all other participating employers.
35(vii) If the combined employer rate of contribution calculated for the
36state of Kansas and participating employers under K.S.A. 74-4931, and
37amendments thereto, is greater than the separate employer rate of
38contribution for the state of Kansas, the difference in the two rates applied
39to the actual payroll of the state of Kansas for the applicable fiscal year
40shall be calculated. This amount shall be certified by the board for deposit
41as additional employer contributions to the retirement benefit
42accumulation reserve for the participating employers under K.S.A. 74-
434931, and amendments thereto.
1(6) The actuarial cost of any legislation enacted in the 1994 session of
2the Kansas legislature will be included in the June 30, 1994, actuarial
3valuation in determining contribution rates for participating employers.
4(7) The actuarial cost of the provisions of K.S.A. 74-4950i, and
5amendments thereto, will be included in the June 30, 1998, actuarial
6valuation in determining contribution rates for participating employers.
7The actuarial accrued liability incurred for the provisions of K.S.A. 74-
84950i, and amendments thereto, shall be amortized over 15 years.
9(8) Except as otherwise provided by law, the actuarial cost of any
10legislation enacted by the Kansas legislature, except the actuarial cost of
11K.S.A. 74-49,114a, and amendments thereto, shall be in addition to the
12employer contribution rates certified for the employer contribution rate in
13the fiscal year immediately following such enactment. Such actuarial cost
14shall be determined by the qualified actuary employed or retained by the
15system pursuant to K.S.A. 74-4908, and amendments thereto, and reported
16to the system and the joint committee on pensions, investments and
17benefits.
18(9) Notwithstanding the provisions of subsection (8), the actuarial
19cost of the provisions of K.S.A. 74-49,109 et seq., and amendments
20thereto, shall be first reflected in employer contribution rates effective with
21the first day of the first payroll period for the fiscal year 2005. The
22actuarial accrued liability incurred for the provisions of K.S.A. 74-49,109
23et seq., and amendments thereto, shall be amortized over 10 years.
24(10) The cost of the postretirement benefit payment provided
25pursuant to the provisions of K.S.A. 74-49,114b, and amendments thereto,
26for retirants other than local retirants as described in subsection (11) or
27insured disability benefit recipients shall be paid in the fiscal year
28commencing on July 1, 2007.
29(11) The actuarial accrued liability incurred for the provisions of
30K.S.A. 74-49,114b, and amendments thereto, for the KPERS local group
31and retirants who were employees of local employers that affiliated with
32the Kansas police and firemen's retirement system shall be amortized over
3310 years.
34(12) The cost of the postretirement benefit payment provided
35pursuant to the provisions of K.S.A. 74-49,114c, and amendments thereto,
36for retirants other than local retirants as described in subsection (13) or
37insured disability benefit recipients shall be paid in the fiscal year
38commencing on July 1, 2008.
39(13) The actuarial accrued liability incurred for the provisions of
40K.S.A. 74-49,114c, and amendments thereto, for the KPERS local group
41and retirants who were employees of local employers that affiliated with
42the Kansas police and firemen's retirement system shall be amortized over
4310 years.
1(14) The board with the advice of the actuary may fix the contribution
2rates for participating employers joining the system after one year from the
3first entry date or for employers who exercise the option contained in
4K.S.A. 74-4912, and amendments thereto, at rates different from the rate
5fixed for employers joining within one year of the first entry date.
6(15) Employer contributions shall in no way be limited by any other
7act that now or in the future establishes or limits the compensation of any
8member.
9(16) Notwithstanding any provision of law to the contrary, each
10participating employer shall remit quarterly, or as the board may otherwise
11provide, all employee deductions and required employer contributions to
12the executive director for credit to the Kansas public employees retirement
13fund within three days after the end of the period covered by the
14remittance by electronic funds transfer. Remittances of such deductions
15and contributions received after such date are delinquent. Delinquent
16payments due under this subsection shall be subject to interest at the rate
17established for interest on judgments under K.S.A. 16-204(a), and
18amendments thereto. At the request of the board, delinquent payments that
19are due or interest owed on such payments, or both, may be deducted from
20any other moneys payable to such employer by any department or agency
21of the state.
22Sec. 17. K.S.A. 2024 Supp. 74-4920 is hereby repealed.
23Sec. 18. This act shall take effect and be in force from and after its
24publication in the statute book.