An Act concerning early retirement incentive programs; amending K.S.A. 1998 Supp.

71-212 and 72-5395 and repealing the existing sections.

Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 1998 Supp. 71-212 is hereby amended to read as
follows: 71-212. (a) The board of trustees of any community college may
establish an early retirement incentive program for the benefit of the
employees of the community college for the purpose of reducing, in
whole or in part, the penalty under the federal insurance contributions
act or the Kansas public employees retirement system, or both, for re-
tirement of employees prior to the normal retirement age of 65 years. As
used in this act, an "early retirement incentive program" is a program
that provides cash payments, either in the form of a lump-sum payment
at the beginning of the fiscal year, or in regular payments during the fiscal
year. No payment pursuant to an early retirement incentive program as
provided in this section shall be made prior to the retirement under the
provisions of the Kansas public employees retirement system of any such
employee of the community college. Commencing in the fiscal year that
commenced in calendar year 1996 and at least once every three years
thereafter, each board that has established or establishes an early retire-
ment incentive program as provided in this section shall employ and pay
an actuary who is a member of the American academy of actuaries and
the society of actuaries and is an enrolled actuary under the employees
retirement income security act to conduct an actuarial valuation of the
liabilities of the program, except that the initial 1996 actuarial valuation
shall not be required as provided in this section of any board that has
conducted such an actuarial valuation of its early retirement incentive
program within the preceding 18 months of the effective date of this act.
Any early retirement incentive program established as provided in this
section after the effective date of this act shall conduct the actuarial val-
uation as required in this section within six months of such establishment
and at least once every three years thereafter. Each actuarial valuation
required by this section shall be reported to the joint committee on pen-
sions, investments and benefits by such board no later than January 1,
2000.

      (b) The board of trustees of any community college shall not com-
mence any new early retirement incentive programs from the effective
date of this act until July 1, 2000.

      (c) An early retirement incentive program established pursuant to
subsection (a) prior to the effective date of this act is hereby declared
valid.

      Sec.  2. K.S.A. 1998 Supp. 72-5395 is hereby amended to read as
follows: 72-5395. (a) The board of education of any school district may
establish an early retirement incentive program for the benefit of the
employees of the district for the purpose of reducing, in whole or in part,
the penalty under the federal insurance contributions act or the Kansas
public employees retirement system, or both, for retirement prior to the
normal retirement age of 65 years. As used in this act, an "early retirement
incentive program" is a program that provides cash payments, either in
the form of a lump-sum payment at the beginning of the fiscal year, or
in regular payments during the fiscal year. No payment pursuant to an
early retirement incentive program as provided in this section shall be
made prior to the retirement under the provisions of the Kansas public
employees retirement system for any employee of the district. Com-
mencing in the fiscal year that commenced in calendar year 1996 and at
least once every three years thereafter, each board that has established
or establishes an early retirement incentive program as provided in this
section shall employ and pay an actuary who is a member of the American
academy of actuaries and the society of actuaries and is an enrolled ac-
tuary under the employees retirement income security act to conduct an
actuarial valuation of the liabilities of the program, except that the initial
1996 actuarial valuation shall not be required as provided in this section
of any board that has conducted such an actuarial valuation of its early
retirement incentive program within the preceding 18 months of the ef-
fective date of this act. Any early retirement incentive program estab-
lished as provided in this section after the effective date of this act shall
conduct the actuarial valuation as required in this section within six
months of such establishment and at least once every three years there-
after. Each actuarial valuation required by this section shall be reported
to the joint committee on pensions, investments and benefits by such
board no later than January 1, 2000.

      (b) The board of education of any school district shall not commence
any new early retirement incentive programs from the effective date of
this act until July 1, 2000.

      (c) An early retirement incentive program established pursuant to
subsection (a) prior to the effective date of this act is hereby declared
valid.

 Sec.  3. K.S.A. 1998 Supp. 71-212 and 72-5395 are hereby repealed.

 Sec.  4. This act shall take effect and be in force from and after its
publication in the Kansas register.

I hereby certify that the above BILL originated in the
HOUSE, and passed that body

____________________________________

HOUSE adopted
Conference Committee Report ______________________________

Passed the SENATE
     as amended ______________________________
SENATE adopted
Conference Committee Report ______________________________

APPROVED ______________________________