Message From the Executive Director
Alan Conroy, Executive Director
The state budget and school funding once again headlined the legislative session earlier this spring.
With a tight budget the last few years, the Legislature struggled to fully fund the State’s KPERS obligations. This resulted in several years of delayed or reduced payments to KPERS.
This year, however, was a significant step forward. Legislators and the Governor made KPERS funding an important priority by agreeing to invest additional funds to KPERS in the future. This is good news!
In addition to paying the full amount required by state law, the Legislature passed the following additional payments and renewed its commitment to repaying last year’s delayed payment.
- $82 million in FY 2019
- Conditional contributions of up to $56 million in FY 2019 and FY 2020. Payments depend on if (and by how much) State revenue is more than projected estimates. The payments will be the amount that actual revenue receipts exceed consensus revenue estimates in FY 2018 and FY 2019.
- Last year, the Legislature delayed $194 million in KPERS contributions with a plan to pay for it over 20 years with interest. This plan remains in place.
Assuming all of the FY 2019 payments are made, that will bring the total State/School contributions to $547 million.
The additional payments are definitely a step in the right direction. But it is consistent and full employer contributions over time that will make the most difference in the Retirement System’s long-term soundness and sustainability.
As always, we welcome your comments and questions. Please feel free to contact me anytime at 785-296-1017 or [email protected].