As Amended by Senate Committee
Session of 2000
SENATE BILL No. 645
By Committee on Ways and Means
2-22
11 AN ACT
concerning retirement and pensions; relating to the Kansas
12 public employees
retirement system and systems thereunder; em-
13 ployer contributions;
application of certain amounts recovered by
14 the system,
postretirement benefit payment and unfunded liabil-
15 ity;
amending K.S.A. 1999 Supp. 74-4920, 74-4927 and 74-4927f and
16 repealing the existing
sections.
17
18 Be it enacted by the Legislature of the
State of Kansas:
19 Section
1. K.S.A. 1999 Supp. 74-4920 is hereby amended to read as
20 follows: 74-4920. (1) (a) Upon the basis of
each annual actuarial valuation
21 and appraisal as provided for in subsection
(3)(a) of K.S.A. 74-4908 and
22 amendments thereto, the board shall
certify, on or before July 15 of each
23 year, to the division of the budget in the
case of the state and to the agent
24 for each other participating employer an
actuarially determined estimate
25 of the rate of contribution which will be
required, together with all ac-
26 cumulated contributions and other assets of
the system, to be paid by
27 each such participating employer to pay all
liabilities which shall exist or
28 accrue under the system, including
amortization of the actuarial accrued
29 liability over a period of 40 years
commencing on July 1, 1993, and the
30 actuarial accrued liability for members of
the faculty and other persons
31 who are employed by the state board of
regents or by educational insti-
32 tutions under its management assisted by
the state board of regents in
33 the purchase of retirement annuities as
provided in K.S.A. 74-4925 and
34 amendments thereto, as provided in this
section. The actuarial accrued
35 liability for all participating employers
other than the state board of re-
36 gents relating to members of the faculty
and other persons described in
37 this section, shall be amortized by annual
payments that increase 4% for
38 each year remaining in the amortization
period. For all participating em-
39 ployers other than the state board of
regents relating to members of the
40 faculty and other persons described in this
section, the projected unit
41 credit actuarial cost method shall be used
in annual actuarial valuations,
42 commencing with the 1993 valuation, to
determine the employer contri-
43 bution rates that shall be certified by the
board. The actuarial accrued
2
1 liability for members of the faculty
and other persons described in this
2 subsection assisted by the state
board of regents in the purchase of re-
3 tirement annuities as provided in
K.S.A. 74-4925 and amendments
4 thereto shall be amortized by annual
level payments over a period of 11
5 years commencing July 1, 1993. Such
certified rate of contribution shall
6 be based on the standards set forth
in subsection (3)(a) of K.S.A. 74-4908
7 and amendments thereto and shall not
be based on any other purpose
8 outside of the needs of the
system.
9 (b)
(i) For employers affiliating on and after January 1, 1999,
upon
10 the basis of an annual actuarial valuation
and appraisal of the system
11 conducted in the manner provided for in
K.S.A. 74-4908 and amend-
12 ments thereto, the board shall certify, on
or before July 15 of each year
13 to each such employer an actuarially
determined estimate of the rate of
14 contribution which shall be required to be
paid by each such employer
15 to pay all of the liabilities which shall
accrue under the system from and
16 after the entry date as determined by the
board, upon recommendation
17 of the actuary. Such rate shall be termed
the employer's participating
18 service contribution and shall be uniform
for all participating employers.
19 Such additional liability shall be
amortized over a period of 34 years com-
20 mencing on July 1, 1999, by annual payments
that increase 4% for each
21 year remaining in the amortization period.
For all participating employers
22 described in this section, the projected
unit credit actuarial cost method
23 shall be used in annual actuarial
valuations to determine the employer
24 contribution rates that shall be certified
by the board.
25 (ii) The board
shall determine for each such employer separately an
26 amount sufficient to amortize over a period
of not to exceed 34 years
27 commencing July 1, l999, all liabilities
for prior service costs which shall
28 have accrued at the time of entry into the
system. On the basis of such
29 determination the board shall annually
certify to each such employer sep-
30 arately an actuarially determined estimate
of the rate of contribution
31 which shall be required to be paid by that
employer to pay all of the
32 liabilities for such prior service costs.
Such rate shall be termed the em-
33 ployer's prior service contribution.
34 (2) The division
of the budget and the governor shall include in the
35 budget and in the budget request for
appropriations for personal services
36 the sum required to satisfy the state's
obligation under this act as certified
37 by the board and shall present the same to
the legislature for allowance
38 and appropriation.
39 (3) Each other
participating employer shall appropriate and pay to
40 the system a sum sufficient to satisfy the
obligation under this act as
41 certified by the board.
42 (4) Each
participating employer is hereby authorized to pay the em-
43 ployer's contribution from the same fund
that the compensation for which
3
1 such contribution is made is paid
from or from any other funds available
2 to it for such purpose. Each
political subdivision, other than an instru-
3 mentality of the state, which is by
law authorized to levy taxes for other
4 purposes, may levy annually at the
time of its levy of taxes, a tax which
5 may be in addition to all other taxes
authorized by law for the purpose of
6 making its contributions under this
act and, in the case of cities and coun-
7 ties, to pay a portion of the
principal and interest on bonds issued under
8 the authority of K.S.A. 12-1774 and
amendments thereto by cities located
9 in the county, which tax, together
with any other fund available, shall be
10 sufficient to enable it to make such
contribution. In lieu of levying the
11 tax authorized in this subsection, any
taxing subdivision may pay such
12 costs from any employee benefits
contribution fund established pursuant
13 to K.S.A. 12-16,102 and amendments thereto.
Each participating em-
14 ployer which is not by law authorized to
levy taxes as described above,
15 but which prepares a budget for its
expenses for the ensuing year and
16 presents the same to a governing body which
is authorized by law to levy
17 taxes as described above, may include in
its budget an amount sufficient
18 to make its contributions under this act
which may be in addition to all
19 other taxes authorized by law. Such
governing body to which the budget
20 is submitted for approval, may levy a tax
sufficient to allow the partici-
21 pating employer to make its contributions
under this act, which tax, to-
22 gether with any other fund available, shall
be sufficient to enable the
23 participating employer to make the
contributions required by this act.
24 (5) The rate of
contribution certified to a participating employer as
25 provided in this section shall apply during
the fiscal year of the partici-
26 pating employer which begins in the second
calendar year following the
27 year of the actuarial valuation. For the
fiscal year commencing in calendar
28 year 1993, the employer rate of
contribution for the state of Kansas and
29 for participating employers under K.S.A.
74-4931 and amendments
30 thereto shall be 3.1% of the amount of
compensation upon which mem-
31 bers contribute during the period. For the
fiscal year commencing in
32 calendar year 1994, the employer rate of
contribution for the state of
33 Kansas and for participating employers
under K.S.A. 74-4931 and amend-
34 ments thereto shall be 3.2% of the amount
of compensation upon which
35 members contribute during the period. For
the fiscal year commencing
36 in calendar year 1994, the employer rate of
contribution for participating
37 employers other than the state of Kansas
shall be 2.2% of the amount of
38 compensation upon which members contribute
during the period. Except
39 as specifically provided in this section,
for the fiscal year commencing in
40 calendar year 1995, the rate of
contribution certified to a participating
41 employer shall in no event exceed such
participating employer's contri-
42 bution rate for the immediately preceding
fiscal year by more than 0.1%
43 of the amount of compensation upon which
members contribute during
4
1 the period. Except as specifically
provided in this section, for fiscal years
2 commencing in calendar year 1996 and
in each subsequent calendar year,
3 the rate of contribution certified to
the state of Kansas shall in no event
4 exceed the state's contribution rate
for the immediately preceding fiscal
5 year by more than 0.2% of the amount
of compensation upon which
6 members contribute during the period.
Except as specifically provided in
7 this section, for fiscal years
commencing in calendar year 1997 and in
8 each subsequent calendar year, the
rate of contribution certified to par-
9 ticipating employers other than the
state of Kansas shall in no event ex-
10 ceed such participating employer's
contribution rate for the immediately
11 preceding fiscal year by more than 0.15% of
the amount of compensation
12 upon which members contribute during the
period. For the fiscal year
13 commencing in calendar year 2000, the
employer rate of contribution for
14 the state of Kansas and for
participating employers under K.S.A. 74-4931,
15 and amendments thereto, shall be equal
to the rate certified by the board
16 for the fiscal year commencing in
calendar year 1999. There shall be an
17 employer rate of contribution certified to
the state of Kansas and partic-
18 ipating employers under K.S.A. 74-4931 and
amendments thereto. There
19 shall be a separate employer rate of
contribution certified to all other
20 participating employers other than the
state of Kansas.
21 (6) The actuarial
cost of any legislation enacted in the 1994 session
22 of the Kansas legislature will be included
in the June 30, 1994, actuarial
23 valuation in determining contribution rates
for participating employers.
24 (7) The actuarial
cost of the provisions of K.S.A. 1999 Supp.
74-4950i,
25 and amendments thereto, will
be included in the June 30, 1998, actu-
26 arial valuation in determining contribution
rates for participating em-
27 ployers. The actuarial accrued liability
incurred for the provisions of
28 K.S.A. 1999 Supp. 74-4950i , and
amendments thereto, shall be amor-
29 tized over 15 years. Any net proceeds
recovered either by settlement
30 or otherwise successful litigation by
the system on and after January
31 1, 2000, pursuant to actions brought
prior to January 1, 2000, to
32 recover damages incurred by the
system related to investments
33 made by the system and after
application of such net proceeds to
34 pay the costs of implementing the
provisions of section 4, and
35 amendments thereto, shall be used to
finance the amount required
36 to fund the actuarial accrued
liability of the state obligation for the
37 postretirement benefit increase
provided by K.S.A. 74-4950i, and
38 amendments thereto.
39 (8) The board
with the advice of the actuary may fix the contribution
40 rates for participating employers joining
the system after one year from
41 the first entry date or for employers who
exercise the option contained
42 in K.S.A. 74-4912 and amendments thereto at
rates different from the
43 rate fixed for employers joining within one
year of the first entry date.
5
1 (9) For
employers affiliating on and after January 1, 1999, the rates
2 of contribution certified to the
participating employer as provided in this
3 section shall apply during the fiscal
year immediately following such cer-
4 tification, but the rate of
contribution during the first year following the
5 employer's entry date shall be equal
to 7% of the amount of compensation
6 on which members contribute during
the year. Any amount of such first
7 year's contribution which may be in
excess of the necessary current serv-
8 ice contribution shall be credited by
the board to the respective em-
9 ployer's prior service liability.
10 (10) Employer
contributions shall in no way be limited by any other
11 act which now or in the future establishes
or limits the compensation of
12 any member.
13
(11) Notwithstanding any provision of law to the contrary,
each par-
14 ticipating employer shall remit quarterly,
or as the board may otherwise
15 provide, all employee deductions and
required employer contributions to
16 the executive secretary for credit to the
Kansas public employees retire-
17 ment fund within three days after the end
of the period covered by the
18 remittance by electronic funds transfer.
Remittances of such deductions
19 and contributions received after such date
are delinquent. Delinquent
20 payments due under this subsection shall be
subject to interest at the rate
21 established for interest on judgments under
subsection (a) of K.S.A. 16-
22 204 and amendments thereto. At the request
of the board, delinquent
23 payments which are due or interest owed on
such payments, or both, may
24 be deducted from any other moneys payable
to such employer by any
25 department or agency of the state.
26 Sec.
2. K.S.A. 1999 Supp. 74-4927 is hereby amended to read as
27 follows: 74-4927. (1) The board may
establish a plan of death and long-
28 term disability benefits to be paid to the
members of the retirement
29 system as provided by this section. The
long-term disability benefit shall
30 not be payable until the member has been
prevented from carrying out
31 each and every duty pertaining to the
member's employment as a result
32 of sickness or injury for a period of 180
days and the annual benefit shall
33 not exceed an amount equal to 662/3% of the
member's annual rate of
34 compensation on the date such disability
commenced and shall be payable
35 in equal monthly installments. In the event
that a member's compensation
36 is not fixed at an annual rate but on an
hourly, weekly, biweekly, monthly
37 or any other basis than annual, the board
shall prescribe by rule and
38 regulation a formula for establishing a
reasonable rate of annual compen-
39 sation to be used in determining the amount
of the death or long-term
40 disability benefit for such member. Such
plan shall provide that:
41 (A) For deaths
occurring prior to January 1, 1987, the right to receive
42 such death benefit shall cease upon the
member's attainment of age 70
43 or date of retirement whichever first
occurs. The right to receive such
6
1 long-term disability benefit shall
cease (i) for a member who becomes
2 eligible for such benefit before
attaining age 60, upon the date that such
3 member attains age 65 or the date of
such member's retirement, which-
4 ever first occurs, (ii) for a member
who becomes eligible for such benefit
5 at or after attaining age 60, the
date that such member has received such
6 benefit for a period of five years,
upon the date that such member attains
7 age 70, or upon the date of such
member's retirement, whichever first
8 occurs, (iii) for all disabilities
incurred on or after January 1, 1987, for a
9 member who becomes eligible for such
benefit at or after attaining age
10 70, the date that such member has received
such benefit for a period of
11 12 months or upon the date of such member's
retirement, whichever first
12 occurs, and (iv) for all disabilities
incurred on or after January 1, 1987,
13 for a member who becomes eligible for such
benefit at or after attaining
14 age 75, the date that such member has
received such benefit for a period
15 of six months or upon the date of such
member's retirement, whichever
16 first occurs.
17 (B) Long-term
disability benefit payments shall be in lieu of any ac-
18 cidental total disability benefit that a
member may be eligible to receive
19 under subsection (3) of K.S.A. 74-4916 and
amendments thereto. The
20 member must make an initial application for
social security disability ben-
21 efits and, if denied such benefits, the
member must pursue and exhaust
22 all administrative remedies of the social
security administration which
23 include, but are not limited to,
reconsideration and hearings. Such plan
24 may provide that any amount which a member
receives as a social security
25 benefit or a disability benefit or
compensation from any source by reason
26 of any employment including, but not
limited to, workers compensation
27 benefits may be deducted from the amount of
long-term disability benefit
28 payments under such plan. During the period
in which such member is
29 pursuing such administrative remedies prior
to a final decision of the
30 social security administration, social
security disability benefits may be
31 estimated and may be deducted from the
amount of long-term disability
32 benefit payments under such plan. Such
long-term disability payments
33 shall accrue from the later of the 181st
day of total disability or the first
34 day upon which the member ceases to draw
compensation from the em-
35 ployer. If the social security benefit,
workers compensation benefit, other
36 income or wages or other disability benefit
by reason of employment, or
37 any part thereof, is paid in a lump-sum,
the amount of the reduction shall
38 be calculated on a monthly basis over the
period of time for which the
39 lump-sum is given. In no case shall a
member who is entitled to receive
40 long-term disability benefits receive less
than $50 per month. As used in
41 this section, ``workers compensation
benefits'' means the total award of
42 disability benefit payments under the
workers compensation act notwith-
43 standing any payment of attorney fees from
such benefits as provided in
7
1 the workers compensation act.
2 (C) The
plan may include other provisions relating to qualifications
3 for benefits; schedules and
graduation of benefits; limitations of eligibility
4 for benefits by reason of termination
of employment or membership;
5 conversion privileges; limitations of
eligibility for benefits by reason of
6 leaves of absence, military service
or other interruptions in service; lim-
7 itations on the condition of
long-term disability benefit payment by reason
8 of improved health; requirements for
medical examinations or reports; or
9 any other reasonable provisions as
established by rule and regulation of
10 uniform application adopted by the
board.
11 (D) On and after
April 30, 1981, the board may provide under the
12 plan for the continuation of long-term
disability benefit payments to any
13 former member who forfeits the entitlement
to continued service credit
14 under the retirement system or continued
assistance in the purchase of
15 retirement annuities under K.S.A. 74-4925
and amendments thereto and
16 to continued long-term disability benefit
payments and continued death
17 benefit coverage, by reason of the member's
withdrawal of contributions
18 from the retirement system or the
repurchase of retirement annuities
19 which were purchased with assistance
received under K.S.A. 74-4925 and
20 amendments thereto. Such long-term
disability benefit payments may be
21 continued until such individual dies,
attains age 65 or is no longer disa-
22 bled, whichever occurs first.
23 (E) Any visually
impaired person who is in training at and employed
24 by a sheltered workshop for the blind
operated by the secretary of social
25 and rehabilitation services and who would
otherwise be eligible for the
26 long-term disability benefit as described
in this section shall not be eli-
27 gible to receive such benefit due to visual
impairment as such impairment
28 shall be determined to be a preexisting
condition.
29 (2) (A) In
the event that a member becomes eligible for a long-term
30 disability benefit under the plan
authorized by this section such member
31 shall be given participating service credit
for the entire period of such
32 disability. Such member's final average
salary shall be computed in ac-
33 cordance with subsection (17) of K.S.A.
74-4902 and amendments thereto
34 except that the years of participating
service used in such computation
35 shall be the years of salaried
participating service.
36 (B) In the event
that a member eligible for a long-term disability
37 benefit under the plan authorized by this
section shall be disabled for a
38 period of five years or more immediately
preceding retirement, such
39 member's final average salary shall be
adjusted upon retirement by the
40 actuarial salary assumption rates in
existence during such period of dis-
41 ability. Effective July 1, 1993, such
member's final average salary shall be
42 adjusted upon retirement by 5% for each
year of disability after July 1,
43 1993, but before July 1, 1998. Effective
July 1, 1998, such member's final
8
1 average salary shall be adjusted upon
retirement by an amount equal to
2 the lesser of: (i) The percentage
increase in the consumer price index for
3 all urban consumers as published by
the bureau of labor statistics of the
4 United States department of labor
minus 1%; or (ii) four percent per
5 annum, measured from the month the
disability occurs to the month that
6 is two months prior to the month of
retirement, for each year of disability
7 after July 1, 1998.
8 (C) In the
event that a member eligible for a long-term disability
9 benefit under the plan authorized by
this section shall be disabled for a
10 period of five years or more immediately
preceding death, such member's
11 current annual rate shall be adjusted by
the actuarial salary assumption
12 rates in existence during such period of
disability. Effective July 1, 1993,
13 such member's current annual rate shall be
adjusted upon death by 5%
14 for each year of disability after July 1,
1993, but before July 1, 1998.
15 Effective July 1, 1998, such member's
current annual rate shall be ad-
16 justed upon death by an amount equal to the
lesser of: (i) The percentage
17 increase in the consumer price index for
all urban consumers published
18 by the bureau of labor statistics of the
United States department of labor
19 minus 1%; or (ii) four percent per annum,
measured from the month the
20 disability occurs to the month that is two
months prior to the month of
21 death, for each year of disability after
July 1, 1998.
22 (3) (A) To
carry out the legislative intent to provide, within the funds
23 made available therefor, the broadest
possible coverage for members who
24 are in active employment or involuntarily
absent from such active em-
25 ployment, the plan of death and long-term
disability benefits shall be
26 subject to adjustment from time to time by
the board within the limita-
27 tions of this section. The plan may include
terms and provisions which
28 are consistent with the terms and
provisions of group life and long-term
29 disability policies usually issued to those
employers who employ a large
30 number of employees. The board shall have
the authority to establish and
31 adjust from time to time the procedures for
financing and administering
32 the plan of death and long-term disability
benefits authorized by this
33 section. Either the insured death benefit
or the insured disability benefit
34 or both such benefits may be financed
directly by the system or by one
35 or more insurance companies authorized and
licensed to transact group
36 life and group accident and health
insurance in this state.
37 (B) The board may
contract with one or more insurance companies,
38 which are authorized and licensed to
transact group life and group acci-
39 dent and health insurance in Kansas, to
underwrite or to administer or
40 to both underwrite and administer either
the insured death benefit or the
41 long-term disability benefit or both such
benefits. Each such contract with
42 an insurance company under this subsection
shall be entered into on the
43 basis of competitive bids solicited and
administered by the board. Such
9
1 competitive bids shall be based on
specifications prepared by the board.
2 (i) In the
event the board purchases one or more policies of group
3 insurance from such company or
companies to provide either the insured
4 death benefit or the long-term
disability benefit or both such benefits,
5 the board shall have the authority to
subsequently cancel one or more of
6 such policies and, notwithstanding
any other provision of law, to release
7 each company which issued any such
canceled policy from any liability
8 for future benefits under any such
policy and to have the reserves estab-
9 lished by such company under any such
canceled policy returned to the
10 system for deposit in the group insurance
reserve of the fund.
11 (ii) In addition,
the board shall have the authority to cancel any policy
12 or policies of group life and long-term
disability insurance in existence
13 on the effective date of this act and,
notwithstanding any other provision
14 of law, to release each company which
issued any such canceled policy
15 from any liability for future benefits
under any such policy and to have
16 the reserves established by such company
under any such canceled policy
17 returned to the system for deposit in the
group insurance reserve of the
18 fund. Notwithstanding any other provision
of law, no premium tax shall
19 be due or payable by any such company or
companies on any such policy
20 or policies purchased by the board nor
shall any brokerage fees or com-
21 missions be paid thereon.
22 (4)
(A) There is hereby created in the state treasury the group
in-
23 surance reserve fund. Investment income of
the fund shall be added or
24 credited to the fund as provided by law.
The cost of the plan of death
25 and long-term disability benefits shall be
paid from the group insurance
26 reserve fund, which shall be administered
by the board. Except as oth-
27 erwise provided by this subsection,
each participating employer shall ap-
28 propriate and pay to the system in such
manner as the board shall pre-
29 scribe in addition to the employee and
employer retirement contributions
30 an amount equal to .6% of the amount of
compensation on which the
31 members' contributions to the Kansas public
employees retirement sys-
32 tem are based for deposit in the group
insurance reserve fund. Notwith-
33 standing the provisions of this
subsection, no participating employer shall
34 appropriate and pay to the system any
amount provided for by this sub-
35 section for deposit in the group
insurance reserve fund for the fiscal
year
36 period commencing on April 1, 2000,
and ending on June 30, 2001.
37 (B) The director
of the budget and the governor shall include in the
38 budget and in the budget request for
appropriations for personal services
39 a sum to pay the state's contribution to
the group insurance reserve fund
40 as provided by this section and shall
present the same to the legislature
41 for allowances and appropriation.
42 (C) The
provisions of subsection (4) of K.S.A. 74-4920 and amend-
43 ments thereto shall apply for the purpose
of providing the funds to make
10
1 the contributions to be deposited to
the group insurance reserve fund.
2 (D) Any
dividend or retrospective rate credit allowed by an insurance
3 company or companies shall be
credited to the group insurance reserve
4 fund and the board may take such
amounts into consideration in deter-
5 mining the amounts of the benefits
under the plan authorized by this
6 section.
7 (5) The
death benefit provided under the plan of death and long-
8 term disability benefits authorized
by this section shall be known and
9 referred to as insured death benefit.
The long-term disability benefit pro-
10 vided under the plan of death and long-term
disability benefits authorized
11 by this section shall be known and referred
to as long-term disability
12 benefit.
13 (6) The board is
hereby authorized to establish an optional death
14 benefit plan. Except as provided in
subsection (7), such optional death
15 benefit plan shall be made available to all
employees who are covered or
16 may hereafter become covered by the plan of
death and long-term disa-
17 bility benefits authorized by this section.
The cost of the optional death
18 benefit plan shall be paid by the applicant
either by means of a system
19 of payroll deductions or direct payment to
the board. The board shall
20 have the authority and discretion to
establish such terms, conditions, spec-
21 ifications and coverages as it may deem to
be in the best interest of the
22 state of Kansas and its employees which
should include term death ben-
23 efits for the person's period of active
state employment regardless of age,
24 but in no case, on and after January 1,
1989, shall the maximum allowable
25 coverage be less than $200,000. The cost of
the optional death benefit
26 plan shall not be established on such a
basis as to unreasonably discrim-
27 inate against any particular age group. The
board shall have full admin-
28 istrative responsibility, discretion and
authority to establish and continue
29 such optional death benefit plan and the
director of accounts and reports
30 of the department of administration shall
when requested by the board
31 and from funds appropriated or available
for such purpose establish a
32 system to make periodic deductions from
state payrolls to cover the cost
33 of the optional death benefit plan coverage
under the provisions of this
34 subsection (6) and shall remit all
deductions together with appropriate
35 accounting reports to the system. There is
hereby created in the state
36 treasury the optional death benefit plan
reserve fund. Investment income
37 of the fund shall be added or credited to
the fund as provided by law. All
38 funds received by the board, whether in the
form of direct payments,
39 payroll deductions or otherwise, shall be
accounted for separately from
40 all other funds of the retirement system
and shall be paid into the optional
41 death benefit plan reserve fund, from which
the board is authorized to
42 make the appropriate payments and to pay
the ongoing costs of admin-
43 istration of such optional death benefit
plan as may be incurred in carrying
11
1 out the provisions of this subsection
(6).
2 (7) Any
employer other than the state of Kansas which is currently a
3 participating employer of the Kansas
public employees retirement system
4 or is in the process of affiliating
with the Kansas public employees retire-
5 ment system may also elect to
affiliate for the purposes of subsection (6).
6 All such employers shall make
application for affiliation with such system,
7 to be effective on January 1 next
following application. Such optional
8 death benefit plan shall not be
available for employees of employers spec-
9 ified under this subsection until
after July 1, 1988.
10 Sec.
3. K.S.A. 1999 Supp. 74-4927f is hereby amended to read as
11 follows: 74-4927f. (a) For the purposes of
providing the ``insured death
12 benefit'' as prescribed in K.S.A. 74-4927
and amendments thereto, to all
13 persons who are members of the retirement
system for judges, on and
14 after the first day of the first
payroll period of the fiscal year ending June
15 30, 1984, the term
``member'' as used in K.S.A. 74-4927 and amendments
16 thereto, and as used in this section shall
include members of the retire-
17 ment system for judges.
18 (b) Except as
otherwise provided by this subsection, the employer of
19 any member who is a member of the
retirement system for judges shall
20 pay to the Kansas public employees
retirement system in such manner as
21 the board of trustees shall prescribe, an
amount equal to .4% of the
22 amount of compensation on which the
member's contributions to the
23 retirement system for judges are based for
deposit in the group insurance
24 reserve of the Kansas public employees
retirement fund, beginning with
25 the first day of the first payroll
period of the fiscal year ending June 30,
26 1984, and each payroll period
thereafter, in lieu of the amount required
27 to be paid under subsection (4) of K.S.A.
74-4927 and amendments
28 thereto. Notwithstanding the provisions
of this subsection, no employer
29 shall pay to the system any amount
provided for by this subsection for
30 deposit in the group insurance reserve
fund for the fiscal year ending June
31 30, 2001.
32
(c) Coverage under the plan of death benefits shall
begin with the
33 first day of the first payroll
period of the fiscal year ending June 30, 1984,
34 for such members and other persons
as defined in this section.
35 New Sec.
4. (a) Each retirant who is entitled to receive a
re-
36 tirement benefit, pension or annuity
payment from a retirement sys-
37 tem or who is a local school
annuitant shall be entitled to receive a
38 retirant dividend payment as
specified in this section. Such retirant
39 dividend payment shall be paid in
addition to the amount of the
40 annual retirement benefit, pension or
annuity payment to which the
41 retirant is otherwise entitled and
shall be paid in the form of an
42 additional payment which shall be
made on October 1, 2000.
43 (b) Each
such retirement dividend payment as provided in this
12
1 section shall be payable to the
retirant in an amount equal to 50%
2 of the retirement benefit
payment such retirant is entitled to receive
3 on July 1, 2000.
4
(c) Each such retirant dividend payment shall be paid by
the
5 retirement system to the
retirant and the local school annuitant and
6 shall be payable from any net
proceeds recovered either by settle-
7 ment or otherwise successful
litigation by the retirement system on
8 or after January 1, 2000,
pursuant to actions brought prior to Jan-
9 uary 1, 2000, to recover
damages incurred by the retirement system
10 related to investments made by the
retirement system.
11 (d) As used
in this section:
12
(1) ``Retirant'' means (A) any person who is a member of a
re-
13 tirement system and who retired prior
to July 1, 1999, (B) any per-
14 son who is a special member of a
retirement system and who retired
15 prior to July 1, 1999, and (C) any
person who is a joint annuitant
16 or beneficiary of any member
described in clause (A) or any special
17 member described in clause
(B).
18
(2) ``Retirement system'' means the Kansas public
employees
19 retirement system, the Kansas police
and firemen's retirement sys-
20 tem, the state school retirement
system and the retirement system
21 for judges.
22 (3) ``Local
school annuitant'' means (A) any person who is an
23 annuitant with 10 or more years of
service, who is receiving an
24 annuity, whose annuity is not
included, in whole or in part, in pay-
25 ments made to such school district
under K.S.A. 72-5512b and
26 amendments thereto, and who is not a
member of a group I or of
27 group II as defined in K.S.A. 72-5518
and amendments thereto, and
28 (B) any person who is receiving an
annuity and who retired prior
29 to September 1, 1981.
30 Sec.
4 5. K.S.A. 1999 Supp. 74-4920,
74-4927 and 74-4927f are
31 hereby repealed.
32 Sec.
5 6. This act shall take effect
and be in force from and after its
33 publication in the statute book.