Session of 1999
         
SENATE BILL No. 365
         
By Committee on Federal and State Affairs
         
4-29
         
  9             AN  ACT concerning early retirement incentive programs; amending
10             K.S.A. 1998 Supp. 71-212 and 72-5395 and repealing the existing
11             sections.
12      
13       Be it enacted by the Legislature of the State of Kansas:
14             Section  1. K.S.A. 1998 Supp. 71-212 is hereby amended to read as
15       follows: 71-212. (a) The board of trustees of any community college may
16       establish an early retirement incentive program for the benefit of the
17       employees of the community college for the purpose of reducing, in
18       whole or in part, the penalty under the federal insurance contributions
19       act or the Kansas public employees retirement system, or both, for re-
20       tirement of employees prior to the normal retirement age of 65 years. As
21       used in this act, an "early retirement incentive program" is a program
22       that provides cash payments, either in the form of a lump-sum payment
23       at the beginning of the fiscal year, or in regular payments during the fiscal
24       year. No payment pursuant to an early retirement incentive program as
25       provided in this section shall be made prior to the retirement under the
26       provisions of the Kansas public employees retirement system of any such
27       employee of the community college. Commencing in the fiscal year that
28       commenced in calendar year 1996 and at least once every three years
29       thereafter, each board that has established or establishes an early retire-
30       ment incentive program as provided in this section shall employ and pay
31       an actuary who is a member of the American academy of actuaries and
32       the society of actuaries and is an enrolled actuary under the employees
33       retirement income security act to conduct an actuarial valuation of the
34       liabilities of the program, except that the initial 1996 actuarial valuation
35       shall not be required as provided in this section of any board that has
36       conducted such an actuarial valuation of its early retirement incentive
37       program within the preceding 18 months of the effective date of this act.
38       Any early retirement incentive program established as provided in this
39       section after the effective date of this act shall conduct the actuarial val-
40       uation as required in this section within six months of such establishment
41       and at least once every three years thereafter. Each actuarial valuation
42       required by this section shall be reported to the joint committee on pen-
43       sions, investments and benefits by such board.

SB 365

2

  1             (b) An early retirement incentive program established pursuant to
  2       subsection (a) prior to the effective date of this act is hereby declared
  3       valid.
  4             Sec.  2. K.S.A. 1998 Supp. 72-5395 is hereby amended to read as
  5       follows: 72-5395. (a) The board of education of any school district may
  6       establish an early retirement incentive program for the benefit of the
  7       employees of the district for the purpose of reducing, in whole or in part,
  8       the penalty under the federal insurance contributions act or the Kansas
  9       public employees retirement system, or both, for retirement prior to the
10       normal retirement age of 65 years. As used in this act, an "early retirement
11       incentive program" is a program that provides cash payments, either in
12       the form of a lump-sum payment at the beginning of the fiscal year, or
13       in regular payments during the fiscal year. No payment pursuant to an
14       early retirement incentive program as provided in this section shall be
15       made prior to the retirement under the provisions of the Kansas public
16       employees retirement system for any employee of the district. Com-
17       mencing in the fiscal year that commenced in calendar year 1996 and at
18       least once every three years thereafter, each board that has established
19       or establishes an early retirement incentive program as provided in this
20       section shall employ and pay an actuary who is a member of the American
21       academy of actuaries and the society of actuaries and is an enrolled ac-
22       tuary under the employees retirement income security act to conduct an
23       actuarial valuation of the liabilities of the program, except that the initial
24       1996 actuarial valuation shall not be required as provided in this section
25       of any board that has conducted such an actuarial valuation of its early
26       retirement incentive program within the preceding 18 months of the ef-
27       fective date of this act. Any early retirement incentive program estab-
28       lished as provided in this section after the effective date of this act shall
29       conduct the actuarial valuation as required in this section within six
30       months of such establishment and at least once every three years there-
31       after. Each actuarial valuation required by this section shall be reported
32       to the joint committee on pensions, investments and benefits by such
33       board.
34             (b) An early retirement incentive program established pursuant to
35       subsection (a) prior to the effective date of this act is hereby declared
36       valid. 
37       Sec.  3. K.S.A. 1998 Supp. 71-212 and 72-5395 are hereby repealed.
38        Sec.  4. This act shall take effect and be in force from and after its
39       publication in the statute book.