Session of 2000
HOUSE BILL No. 2645
By Representative Jenkins
1-19
9 AN ACT concerning retirement; relating to members of the legislature;
10 deferred compensation; amending K.S.A. 74-4991, 74-4993, 74-4994
11 and 74-4995 and K.S.A. 1999 Supp. 74-4911, 74-4911f and 74-4992
12 and repealing the existing sections.
13
14 Be it enacted by the Legislature of the State of Kansas:
15 Section 1. K.S.A. 1999 Supp. 74-4911 is hereby amended to read as
16 follows: 74-4911. (1) Any employee of a participating employer other than
17 an elected official on the entry date of such employer shall be a member
18 of the system on either the entry date or the first day of the payroll period
19 coinciding with or following the completion of one year of service, which-
20 ever is later. For purposes of this act occasional breaks in service which
21 shall not exceed an aggregate of 10 days in any such year shall not con-
22 stitute a break in service for purposes of determining the membership
23 date of such employee.
24 (2) Except as otherwise provided in this subsection, any employee
25 other than an elected official who is employed by a participating employer
26 after the entry date of such employer shall be a member of the system
27 on the first day of the payroll period coinciding with or following com-
28 pletion of one year of continuous service. For purposes of this act, oc-
29 casional breaks in service which shall not exceed an aggregate of 10 days
30 in any such year shall not constitute a break in continuous service for
31 purposes of determining the membership date of such employee. For
32 purposes of this subsection, any employee of a local governmental unit
33 which has its own pension plan who becomes an employee of a partici-
34 pating employer as a result of a merger or consolidation of services pro-
35 vided by local governmental units, which occurred on January 1, 1994,
36 may count service with such local governmental unit in determining
37 whether such employee has met the one year of continuous service re-
38 quirement contained in this subsection.
39 (3) Any employee who is an elected official and is eligible to join the
40 system shall file, within 90 days after taking the oath of office, an irrev-
41 ocable election to become or not to become a member of the system.
42 Such election shall become effective immediately upon making such elec-
43 tion, if such election is made within 14 days of taking the oath of office
2
1 or, otherwise, on the first day of the first payroll period of the first quarter
2 following receipt of the election in the office of the retirement system.
3 In the event that such elected official fails to file the election to become
4 a member of the retirement system, it shall be presumed that such person
5 has elected not to become a member.
6 (4) Except as otherwise required by USERRA, any employee other
7 than an elected official who is in military service or on leave of absence
8 on the entry date of such employee's employer shall become a member
9 of the system upon returning to active employment or on the first day of
10 the payroll period coinciding with or following the completion of one year
11 of service, whichever is later. For purposes of this act, occasional breaks
12 in service which shall not exceed an aggregate of 10 days in any such year
13 shall not constitute a break in service for purposes of determining the
14 membership date of such employee.
15 (5) Any employee of the state of Kansas other than an elected official,
16 who is receiving or is eligible for assistance by the state board of regents
17 in the purchase of a retirement annuity under K.S.A. 74-4925, and
18 amendments thereto, and who becomes ineligible for such assistance be-
19 cause such employee's position is reclassified to a position in the classified
20 service under the Kansas civil service act, or who becomes ineligible for
21 such assistance because such person accepts and transfers to a position
22 in the classified service under the Kansas civil service act shall be a mem-
23 ber of the system on the first day of the payroll period coinciding with or
24 following the effective date of such reclassification or transfer. Any such
25 employee who became ineligible for such assistance prior to the effective
26 date of this act because of such a reclassification or such a transfer oc-
27 curring prior to the effective date of this act and who is not a member of
28 the system on the effective date of this act shall be a member of the
29 system on the first day of the payroll period coinciding with or following
30 the effective date of this act.
31 (6) Any employee of the state board of regents or of an educational
32 institution under its management, other than an elected official, who is a
33 member of the system and who becomes ineligible to be a member of
34 the system because such employee's position is reclassified to a position
35 under the Kansas civil service act which is eligible for assistance by the
36 state board of regents in the purchase of a retirement annuity under
37 K.S.A. 74-4925 and amendments thereto, or who becomes ineligible to
38 be a member of the system because such employee transfers to a position
39 under the Kansas civil service act which is eligible for such assistance,
40 shall become eligible for such assistance in accordance with the provisions
41 of K.S.A. 74-4925 and amendments thereto, unless such employee files
42 a written election in the office of the retirement system, in the form and
43 manner prescribed by the board of trustees thereof, to remain a member
3
1 of the system prior to the first day of the first complete payroll period
2 occurring after the effective date of such reclassification or transfer. Fail-
3 ure to file such written election shall be presumed to be an election not
4 to remain a member of the system and to become eligible for assistance
5 by the state board of regents in the purchase of a retirement annuity
6 under K.S.A. 74-4925 and amendments thereto. Such election, whether
7 to remain a member of the system or to become eligible for such assis-
8 tance, shall be effective as of the effective date of such reclassification or
9 transfer, and shall be irrevocable.
10 (7) Any elected official who at the time of becoming an elected official
11 is already a member of the system by being or having been an employee
12 of a participating employer shall continue as a member of the system.
13 (8) The provisions of this section shall not apply to members of the
14 legislature who first serve as members of the legislature on or after Jan-
15 uary 8, 2001.
16 Sec. 2. K.S.A. 1999 Supp. 74-4911f is hereby amended to read as
17 follows: 74-4911f. (a) Subject to procedures or limitations prescribed by
18 the governor and the provisions of section 3, and amendments thereto,
19 any person who is not an employee and who becomes a state officer may
20 elect to not become a member of the system. The election to not become
21 a member of the system must be filed within 90 days of assuming the
22 position of state officer. Such election shall be irrevocable. If such election
23 is not filed by such state officer, such state officer shall be a member of
24 the system.
25 (b) Subject to the provisions of section 3, and amendments thereto,
26 any such state officer who is a member of the Kansas public employees
27 retirement system, on or after the effective date of this act, may elect to
28 not be a member by filing an election with the office of the retirement
29 system. The election to not become a member of the system must be
30 filed within 90 days of assuming the position of state officer. If such
31 election is not filed by such state officer, such state officer shall be a
32 member of the system.
33 (c) Subject to limitations prescribed by the secretary of administra-
34 tion, the state agency employing any employee who has filed an election
35 as provided under subsection (a) or (b) and who has entered into an
36 employee participation agreement, as provided in K.S.A. 75-5524 and
37 amendments thereto for deferred compensation pursuant to the Kansas
38 public employees deferred compensation plan and the state of Kansas for
39 members of the legislature who have entered into an employee partici-
40 pation agreement, as provided in K.S.A. 75-5524, and amendments
41 thereto for deferred compensation pursuant to the Kansas public employ-
42 ees deferred compensation plan shall contribute to such plan on such
43 employee's behalf an amount equal to 8% of the employee's salary, as
4
1 such salary has been approved pursuant to K.S.A. 75-2935b and amend-
2 ments thereto or as otherwise prescribed by law.
3 (d) As used in this section and K.S.A. 74-4927k and amendments
4 thereto, "state officer" means the secretary of administration, secretary
5 on aging, secretary of commerce and housing, secretary of corrections,
6 secretary of health and environment, secretary of human resources, sec-
7 retary of revenue, secretary of social and rehabilitation services, secretary
8 of transportation, secretary of wildlife and parks, superintendent of the
9 Kansas highway patrol, secretary of agriculture, executive director of the
10 Kansas lottery, executive director of the Kansas racing commission, pres-
11 ident of the Kansas development finance authority, state fire marshal,
12 state librarian, securities commissioner, adjutant general, members of the
13 state board of tax appeals, members of the Kansas parole board, members
14 of the state corporation commission, any unclassified employee on the
15 staff of officers of both houses of the legislature, any unclassified em-
16 ployee appointed to the governor's or lieutenant governor's staff and, any
17 person employed by the legislative branch of the state of Kansas, other
18 than any such person receiving service credited under the Kansas public
19 employees retirement system or any other retirement system of the state
20 of Kansas therefor, who elected to be covered by the provisions of this
21 section as provided in subsection (e) of K.S.A. 46-1302 and amendments
22 thereto or who is first employed on or after July 1, 1996, by the legislative
23 branch of the state of Kansas and members of the legislature.
24 (e) The provisions of this section shall not apply to any state officer
25 who has elected to remain eligible for assistance by the state board of
26 regents as provided in subsection (a) of K.S.A. 74-4925 and amendments
27 thereto.
28 New Sec. 3. (a) No member of the legislature who first serves as a
29 member of the legislature on or after January 8, 2001, shall be an eligible
30 employee or become a member of the Kansas public employees retire-
31 ment system.
32 (b) Any member of the legislature who serves prior to January 8,
33 2001, may make any election provided by law pursuant to K.S.A. 74-4911
34 or 74-4991 et seq., and amendments thereto, or elect to be covered under
35 the provisions of K.S.A. 74-4911f, and amendments thereto.
36 Sec. 4. K.S.A. 74-4991 is hereby amended to read as follows: 74-
37 4991. Each person who was a member of the legislature on January 1,
38 1974, and each person who serves as a member of the legislature after
39 January 1, 1974, and each former member of the legislature who is eligible
40 to receive benefits or who will become eligible to receive benefits under
41 the provisions of K.S.A. 1972 Supp. 46-1301, as they existed on the day
42 preceding the effective date of this act, shall become an eligible employee
43 on the entry date or upon taking the oath of office for the office to which
5
1 such person is elected if such election occurs after the entry date of such
2 person's employer. The entry date of the state of Kansas relating to all
3 members of the legislature or former members of the legislature covered
4 by this act shall be January 1, 1974. "Members of the legislature" as used
5 in this act shall mean any person elected or appointed to the legislature.
6 The provisions of this section shall not apply to members of the legislature
7 who first serve as members of the legislature on or after January 8, 2001.
8 Sec. 5. K.S.A. 1999 Supp. 74-4992 is hereby amended to read as
9 follows: 74-4992. (a) Any such member of the legislature or former mem-
10 ber of the legislature as described in K.S.A. 74-4991 and amendments
11 thereto shall become a member on entry date or upon filing with the
12 board an irrevocable election to become or not to become a member of
13 the system. In the event that any such member of the legislature or former
14 member of the legislature fails to file the election to become a member
15 of the retirement system, it shall be presumed that such member of the
16 legislature or former member of the legislature has elected not to become
17 a member. The election to participate shall become effective immediately
18 upon making such election, if such election is made within 14 days of
19 taking the oath of office or, otherwise, on the first day of the first payroll
20 period of the first quarter following receipt of the election in the office
21 of the retirement system.
22 (b) Any member of the legislature who had attained membership in
23 the Kansas public employees retirement system prior to taking the oath
24 of office as a member of the legislature may elect not to participate in
25 the Kansas public employees retirement system for the purpose of service
26 as a member of the legislature. This election, which is irrevocable, must
27 be filed within the offices of the system. Any member of the legislature
28 who is a member of the retirement system on the effective date of this
29 act and was a member of the retirement system at the time of taking the
30 oath of office may elect not to participate in the retirement system for
31 service as a member of the legislature if such irrevocable election is filed
32 within the offices of the system.
33 (c) Subject to the provisions of K.S.A. 1999 Supp. 74-49,123, and
34 amendments thereto, any member of the legislature who elected not to
35 participate in the retirement system, and who is not a contributing mem-
36 ber with any other participating employer, may purchase such participat-
37 ing service by making a single lump-sum payment in an amount deter-
38 mined by the actuary using the then current rate of compensation and
39 the actuarial assumptions and tables currently in use by the system.
40 (d) Subject to the provisions of K.S.A. 1999 Supp. 74-49,123, and
41 amendments thereto, except as otherwise provided in this section, any
42 member of the retirement system may purchase participating service
43 credit for employment service as described in this section, if first com-
6
1 menced prior to January 1, 1996, by electing to effect such purchase by
2 means of having employee contributions as provided in K.S.A. 74-4919
3 and amendments thereto deducted from such member's compensation
4 at a percentage rate equal to two times or three times the employee's rate
5 of contribution as provided in K.S.A. 74-4919 and amendments thereto
6 for such periods of service in lieu of a lump-sum amount as provided in
7 this section. Such deductions shall commence at the beginning of the
8 quarter following such election and shall remain in effect until all quarters
9 of such service have been purchased. Any person may make any such
10 purchase as described in this section, if first commenced in calendar year
11 1996 or thereafter, at an additional rate of contribution, in addition to the
12 employee's rate of contribution as provided in K.S.A. 74-4919 and amend-
13 ments thereto, based upon the member's attained age at the time of
14 purchase and using actuarial assumptions and tables in use by the retire-
15 ment system at such time of purchase, for such periods of service, in lieu
16 of a lump-sum amount as provided in this section. Such additional rate
17 of contribution shall commence at the beginning of the quarter following
18 such election and shall remain in effect until all quarters of such service
19 have been purchased.
20 (e) The provisions of this section shall not apply to any member of
21 the legislature who first serves as a member of the legislature on or after
22 January 8, 2001.
23 Sec. 6. K.S.A. 74-4993 is hereby amended to read as follows: 74-
24 4993. Upon becoming a member as that term is defined in subsection
25 (21) of K.S.A. 74-4902, and amendments thereto, members of the legis-
26 lature or former members of the legislature as described in K.S.A. 74-
27 4991, and amendments thereto, shall be entitled to and governed by all
28 the provisions relating to rights, powers, duties, liabilities and benefits for
29 members, their dependents and beneficiaries. For the purposes of this
30 act the member's prior service annual salary shall be computed by mul-
31 tiplying by twelve (12) 12 the highest monthly compensation received as
32 such member of the legislature in the year immediately preceding the
33 entry date as defined in this act or in the last year during which he or she
34 the member served as a member of the legislature. The provisions of this
35 section shall not apply to any member of the legislature who first serves
36 as a member of the legislature on or after January 8, 2001.
37 Sec. 7. K.S.A. 74-4994 is hereby amended to read as follows: 74-
38 4994. (1) No person who becomes a member as provided in this act shall
39 be entitled to a duplication of service credit or benefits under the Kansas
40 public employees retirement system.
41 (2) If a member of the legislature or former member of the legislature
42 who becomes a member as provided in this act is or becomes a member
43 of the Kansas public employees retirement system by reason of other
7
1 employment such member or former member's compensation received
2 from all participating employers shall be combined to compute the prior
3 service annual salary and the final average salary as those terms are de-
4 fined herein and in K.S.A. 74-4902 and amendments thereto in the man-
5 ner prescribed by the board.
6 (3) Service credit shall be granted as prescribed in K.S.A. 74-4913
7 and amendments thereto except that:
8 (a) No more than one calendar month of prior service credit shall be
9 granted for employment with all employers within any one calendar
10 month of prior service;
11 (b) no more than one calendar quarter of participating service credit
12 shall be granted for employment with all employers in any one calendar
13 quarter of participating service; and
14 (c) prior service credit shall be granted for all service as a member
15 of the legislature prior to entry date.
16 (4) If a member of the legislature or former member of the legislature
17 becomes a member as provided in this act and was also a member of
18 another retirement plan or system authorized by the laws of this state in
19 operation on the entry date such member shall be entitled to all rights
20 and privileges including but not limited to crediting of service and re-
21 ceiving of benefits under such other retirement plan notwithstanding at-
22 tainment of membership in the Kansas public employees retirement sys-
23 tem as provided herein.
24 (5) After January 14, 1991, if a member of the legislature is or be-
25 comes a member of the Kansas public employees retirement system, the
26 retirement system for judges or the Kansas police and firemen's retire-
27 ment system by reason of other employment, compensation received as
28 a member or special member of the system as a result of service as a
29 member of the legislature shall not be added to or included with com-
30 pensation from other employment for the purpose of any benefits re-
31 sulting from service credit under any of the aforementioned systems for
32 service which was not as a member of the legislature. Any amounts de-
33 ducted and remitted from compensation for such service while also re-
34 ceiving compensation as a member of the legislature shall be refunded
35 to the member or special member. The provisions of this subsection shall
36 not apply to service of a member of the legislature which was not service
37 as a member of the legislature when such service not as a member of the
38 legislature is required or mandated by law for a member or officer of the
39 legislature.
40 (6) The provisions of this section shall not apply to any member of
41 the legislature who first serves as a member of the legislature on or after
42 January 8, 2001.
43 Sec. 8. K.S.A. 74-4995 is hereby amended to read as follows: 74-
8
1 4995. (1) Employer and employee contributions shall be governed by the
2 provisions of K.S.A. 74-4919 and 74-4920 and amendments thereto. For
3 purposes of contributions to and benefits under the Kansas public em-
4 ployees retirement system, except as provided in subsection (2), (3) or
5 (4), compensation of members under this act shall be a monthly amount
6 equal to the compensation to which the member was entitled for services
7 as a member of the legislature during the period January 15 to February
8 14, inclusive, of the most recent session in which the member has served
9 and employer and employee rate of contribution shall be applied to such
10 amounts monthly. The employee and employer contributions shall be
11 remitted to the system quarterly with a report of same as may be required
12 by the board. The employee contributions may be deducted from either
13 any compensation of the member or any expense allowance or reimburse-
14 ment of the member, or any combination thereof.
15 (2) For service as a member after July 18, 1982, a member of the
16 legislature may elect to participate with a rate of compensation that in-
17 cludes a monthly amount equal to 1/12 of the annualized amount received
18 for monthly allowance under subsection (c) of K.S.A. 46-137a and amend-
19 ments thereto. Such changes in the member's rate of compensation and
20 contributions shall be effective the first day of the payroll period coincid-
21 ing with or following the calendar quarter in which the election is received
22 by the board of trustees of the system. All elections shall be in the form
23 and manner prescribed by the board of trustees.
24 (3) For service as a member after July 18, 1982, and prior to the
25 effective date of this act, a member of the legislature may elect to partic-
26 ipate with a rate of compensation that includes a monthly amount equal
27 to 1/12th the annualized amount received for expenses allowance under
28 subsection (b) of K.S.A. 46-137a and amendments thereto. Upon such
29 election, such member of the legislature shall make a lump-sum payment
30 equivalent to 4% of such compensation, and the member's final average
31 salary shall be based on compensation added thereto.
32 (4) A member of the legislature may elect to participate with a rate
33 of compensation that includes a monthly amount equal to 1/12th the an-
34 nualized amount received for expenses allowance under subsection (b) of
35 K.S.A. 46-137a and amendments thereto. Such changes in the member's
36 rate of compensation and contributions shall be effective the first day of
37 the payroll period coinciding with or following the calendar quarter in
38 which the election is received by the board of trustees of the system. All
39 elections shall be in the form and manner prescribed by the board of
40 trustees.
41 (5) Any member of the legislature making one or more of the elec-
42 tions provided in this section may not revoke such election or elections
43 while they remain a participating employee for service as a member of
9
1 the legislature.
2 (6) The provisions of this section shall not apply to any member of
3 the legislature who first serves as a member of the legislature on or after
4 January 8, 2001.
5 Sec. 9. K.S.A. 74-4991, 74-4993, 74-4994 and 74-4995 and K.S.A.
6 1999 Supp. 74-4911, 74-4911f and 74-4992 are hereby repealed.
7 Sec. 10. This act shall take effect and be in force from and after its
8 publication in the statute book.