SESSION OF 2001


SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2523


As Recommended by House Committee on
Appropriations




Brief (1)



The bill would allow any former member of the Kansas Police and Firemen's (KP&F) Retirement System, who withdraws contributions after leaving covered KP&F employment, and then reenters covered KP&F employment, to purchase any forfeited service credit at an actuarially determined amount, either by paying a lump sum contribution or by making additional contributions through payroll deductions.





Background



Under current law, purchases can be made only by a lump sum. A representative of the Kansas Fire Service Alliance spoke in favor the HB 2523 in order to allow repurchases of service credit through payroll deduction, as currently allowed for regular KPERS repurchases. The House Budget Committee recommended this bill. HB 2523 would have a positive actuarial impact since current law allows lump sum purchases that are not based on an actuarially determined amount. The bill would clarify that all purchases must be based upon actuarially determined payments, whether as a lump sum or over time.



1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext.cgi