KPERS Study Commission Results
For pension changes passed in 2011 to take effect, a KPERS Study Commission had to study pension plan design and submit a report to the 2012 Legislature, which it did.
The Study Commission was just one step in the process. The Legislature would have to pass new legislation to make any benefit changes beyond what was passed in 2011. (HB 2194 overview)
Commission Report Highlights
Current Retirees
No changes.
Vested Members
No retirement benefit changes beyond what was already included in HB 2194.
Non-Vested Members and New Hires
The Commission is recommending a new tier 3 retirement plan with two elements:
- 6% employee contributions to a defined contribution plan
- Employer contributions based on employee service to a cash-balance like plan
that pays a lifetime annuity benefit at retirement
Each employee would have both elements. This would affect current members who are not vested as of the effective date. No other details yet. The recommendation will be in a bill presented to the legislature and would trigger HB 2194.
Other Recommendations
As part of the main "trigger" legislation, all legislators would move to the new tier 3 plan and have the same benefits as other employees, including how their salaries are calculated for retirement benefits.
Additional recommended legislation would:
- Require employers to make the full actuarial contribution.
- Eliminate future service purchases as of an effective date.
The Study Commission also suggested the legislature consider pension obligation bonds to pay for some or all of the unfunded actuarial liability.
Final Study Commission Report (PDF, 420KB, on Legislature's website)
Next Steps
Base on the Study Commission report, the Legislature is working with two bills.
At least one needs to be voted on in a House committee and a Senate committee, then in either the full House or full Senate. Final legislation could look like it does now, have different changes or not pass at all.
Benefits are designed and funded by the legislature. The best place to bring concerns about plan design and funding is to your legislator and legislative leadership. Kansas Legislature web site