24 Be it enacted by the Legislature of the
State of Kansas:
25 Section 1. K.S.A.
20-2601a is hereby amended to read as follows: 20-
26 2601a. (a) On and after July 1, 1975, the
Kansas judges retirement board
27 established pursuant to K.S.A. 20-2604
and amendments thereto shall be
28 and is hereby abolished, and on
said such date, except as otherwise
pro-
29 vided in this act, all of the powers,
duties and functions of said Kansas
30 judges retirement board, whether in its
capacity as that board pursuant
31 to K.S.A. 20-2604 and amendments
thereto or in its capacity as the Kansas
32 official court reporters retirement board
pursuant to K.S.A. 20-2704, shall
33 be and are hereby transferred to and
conferred and imposed upon the
34 board of trustees of the Kansas public
employees retirement system.
35 (b) Except as otherwise
provided in this act, the board of trustees of
36 the Kansas public employees retirement
system shall be the successor in
37 every way to the powers, duties and
functions of the Kansas judges re-
38 tirement board, whether in its capacity as
that board pursuant to K.S.A.
39 20-2604 and amendments thereto or in
its capacity as the Kansas official
40 court reporters retirement board pursuant
to K.S.A. 20-2704, in which
41 the same were vested prior to July 1, 1975.
Every act performed in the
42 exercise of such powers, duties and
functions by or under the authority
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1 of the board of trustees of the
Kansas public employees retirement system
2 shall be deemed to have the same
force and effect as if performed by the
3 Kansas judges retirement board in
which such powers, duties and func-
4 tions were vested prior to July 1,
1975.
5 (c) On and after
July 1, 1975, whenever the Kansas judges retirement
6 board, or words of like effect, is
referred to or designated by a statute or
7 contract or other document, such
reference or designation shall be
8 deemed to apply to the board of
trustees of the Kansas public employees
9 retirement system.
10 (d) On and after July 1,
1975, whenever the Kansas official court
11 reporters retirement board, or words of
like effect, is referred to or des-
12 ignated by a statute or contract or other
document, such reference or
13 designation shall be deemed to apply to the
board of trustees of the
14 Kansas public employees retirement
system.
15 (e) The board of
trustees of the Kansas public employees retirement
16 system shall adopt rules and regulations
necessary for the administration
17 of the retirement system for judges and
for the transaction of business
18 consistent with law. All rules or
regulations of the Kansas judges retire-
19 ment board in existence on July 1, 1975,
whether adopted when acting
20 as that board pursuant to K.S.A. 20-2604
and amendments thereto or
21 when acting as the Kansas official court
reporters retirement board pur-
22 suant to K.S.A. 20-2704, shall continue in
force and effect and shall be
23 deemed to be duly adopted rules or
regulations of the board of trustees
24 of the Kansas public employees retirement
system, until revised,
25 amended, revoked or nullified pursuant to
law.
26 (f) All decisions and
determinations of the Kansas judges retirement
27 board in effect on July 1, 1975, whether
made when acting as that board
28 pursuant to K.S.A. 20-2604 and
amendments thereto or when acting as
29 the Kansas official court reporters
retirement board pursuant to K.S.A.
30 20-2704, shall continue in force and effect
and shall be deemed to be
31 decisions and determinations of the board
of trustees of the Kansas public
32 employees retirement system, until revised,
amended, revoked or nulli-
33 fied pursuant to law.
34 Sec. 2. K.S.A.
20-2606 is hereby amended to read as follows: 20-
35 2606. (a) Any judge whose service is
terminated prior to retirement, for
36 any cause other than death,
may, upon written request to the board
and
37 after 30 days after such
termination, may have returned the total amount
38 of accumulated contributions which the
judge has made to the fund after
39 the retirement system for judges has a
reasonable time to process the
40 application for withdrawal. The return of
accumulated contributions to a
41 judge shall preclude that judge from any
benefits under the retirement
42 system for judges unless and until that
judge again serves in such capacity.
43 (b) Any incumbent judge
over 70 years of age with a total service of
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1 at least eight years at the time the
judge's present term of office expires,
2 or at the time of retirement if the
judge retires before the end of the
3 judge's present term, shall receive
retirement annuities as provided in
4 K.S.A. 20-2608, 20-2609 and 20-2610,
and any amendments thereto, un-
5 less the judge requests the return of
accumulated contributions under
6 this section.
7 (c) In case any
judge, who has had such judge's accumulated contri-
8 butions returned under this section,
serves again in such capacity, such
9 judge may return the amount refunded
under this section without interest
10 or penalty and regain such judge's original
status under the retirement
11 system for judges.
12 (d) Any member of the
retirement system for judges who was pre-
13 viously a member of the Kansas public
employees retirement system or
14 the Kansas police and firemen's retirement
system and who forfeited
15 service credit under either of those
systems by reason of termination of
16 employment and withdrawal of their
contributions to that system, may
17 elect to purchase service credit for the
previously forfeited service credit
18 by means of a single lump-sum payment and
such service shall be recre-
19 dited to that system. The amount of the
lump-sum payment shall be
20 determined by the actuary using the
member's then current annual rate
21 of compensation and the actuarial
assumptions and tables then currently
22 in use by that retirement system.
23 Sec. 3. K.S.A. 1997
Supp. 74-4902 is hereby amended to read as
24 follows: 74-4902. As used in articles 49
and 49a of chapter 74 and amend-
25 ments thereto, unless otherwise provided or
the context otherwise re-
26 quires:
27 (1) ``Accumulated
contributions'' means the sum of all contributions
28 by a member to the system which are
credited to the member's account,
29 with interest allowed thereon;
30 (2) ``acts'' means
K.S.A. 74-4901 to 74-4929, inclusive, the
provisions
31 of articles 49 and 49a of chapter 74 of
the Kansas Statutes Annotated and
32 amendments thereto;
33 (3) ``actuarial
equivalent'' means an annuity or benefit of equal value
34 to the accumulated contributions, annuity
or benefit, when computed
35 upon the basis of the actuarial tables in
use by the system;
36 (4) ``actuarial tables''
means the actuarial tables approved and in use
37 by the board at any given time;
38 (5) ``actuary'' means
the actuary or firm of actuaries employed or
39 retained by the board at any given
time;
40 (6) ``agent'' means the
individual designated by each participating em-
41 ployer through whom system transactions and
communication are di-
42 rected;
43 (7) ``beneficiary''
means any natural person or persons or estate
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1 named by a member to receive any
benefits as provided for by this act.
2 Designations of beneficiaries by a
member who is a member of more
3 than one retirement system made on or
after July 1, 1987, shall be the
4 basis of any benefits payable under
all systems unless otherwise provided
5 by law. Except as otherwise provided
by subsection (33) of this section,
6 if there is no named beneficiary
living at time of member's death, any
7 benefits provided for by this act
shall be paid to: (A) The member's sur-
8 viving spouse; (B) the member's
dependent child or children; (C) the
9 member's dependent parent or parents;
(D) the member's nondependent
10 child or children; (E) the member's
nondependent parent or parents; (F)
11 the estate of the deceased member; in the
order of preference as specified
12 in this subsection. Any payment made to a
named beneficiary shall be a
13 full discharge and release to the system
from any further claims. Any
14 payment made to a beneficiary as provided
in clauses (A), (B), (C), (D),
15 (E) or (F) of this subsection, as
determined by the board, shall be a full
16 discharge and release to the system from
any further claims. Whenever
17 any payment is payable to more than one
beneficiary such payment shall
18 be made to such beneficiaries jointly. Any
benefits payable to a benefi-
19 ciary or beneficiaries who are minor
children or incompetent persons
20 shall be made in the name of the
beneficiary or beneficiaries and deliv-
21 ered to the lawfully appointed conservator
of such beneficiaries who was
22 nominated by will or as otherwise provided
by law, except that in those
23 cases where the benefit involves only the
payment of the member's ac-
24 cumulated contributions with interest as
provided by this act in an amount
25 not to exceed $500, the board is hereby
authorized in its discretion with-
26 out the appointment of a conservator or the
giving of a bond to pay such
27 amount as is due to the minor or minors
themselves, any payment so
28 made shall be a full discharge and release
to the system from any further
29 claims;
30 (8) ``board of
trustees,'' ``board'' or ``trustees'' means the managing
31 body of the system which is known as the
Kansas public employees re-
32 tirement system board of trustees;
33 (9) ``compensation''
means all salary, wages and other remuneration
34 payable to a member for personal services
performed for a participating
35 employer, including maintenance or any
allowance in lieu thereof pro-
36 vided a member as part of compensation, but
not including reimburse-
37 ment for travel or moving expenses or on
and after July 1, 1994, payment
38 pursuant to an early retirement incentive
program made prior to the
39 retirement of the member. Beginning with
the employer's fiscal year
40 which begins in calendar year 1991 or for
employers other than the state
41 of Kansas, beginning with the fiscal year
which begins in calendar year
42 1992, when the compensation of a member who
remains in substantially
43 the same position during any two
consecutive years of participating serv-
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1 ice used in calculating final average
salary is increased by an amount which
2 exceeds 15%, then the amount of such
increase which exceeds 15% shall
3 not be included in compensation,
except that (A) any amount of com-
4 pensation for accumulated sick leave
or vacation or annual leave paid to
5 the member, (B) any increase in
compensation for any member due to a
6 reclassification or reallocation of
such member's position or a reassign-
7 ment of such member's job
classification to a higher range or level and
8 (C) any increase in compensation as
provided in any contract entered into
9 prior to January 1, 1991, and still
in force on the effective date of this act,
10 pursuant to an early retirement incentive
program as provided in K.S.A.
11 72-5395 et seq. and amendments thereto,
shall be included in the amount
12 of compensation of such member used in
determining such member's
13 final average salary and shall not be
subject to the 15% limitation provided
14 in this subsection. Any contributions by
such member on the amount of
15 such increase which exceeds 15% which is
not included in compensation
16 shall be returned to the member. Unless
otherwise provided by law, be-
17 ginning with the employer's fiscal year
coinciding with or following July
18 1, 1985, compensation shall include any
amounts for tax sheltered an-
19 nuities or deferred compensation plans.
Beginning with the employer's
20 fiscal year which begins in calendar year
1991, compensation shall include
21 amounts under sections 403b, 457 and 125 of
the federal internal revenue
22 code of 1986 and any other section of the
federal internal revenue code
23 of 1986 which defers or excludes amounts
from inclusion in income;
24 (10) ``credited
service'' means the sum of participating service and
25 prior service and in no event shall
credited service include any service
26 which is credited under another retirement
plan authorized under any
27 law of this state;
28 (11) ``dependent'' means
a parent or child of a member who is de-
29 pendent upon the member for at least 1/2 of
such parent or child's support;
30 (12) ``effective date''
means the date upon which the system becomes
31 effective by operation of law;
32 (13) ``eligible
employer'' means the state of Kansas, and any county,
33 city, township, special district or any
instrumentality of any one or several
34 of the aforementioned or any noncommercial
public television or radio
35 station located in this state which
receives state funds allocated by the
36 Kansas public broadcasting commission whose
employees are covered by
37 social security. If a class or several
classes of employees of any above
38 defined employer are not covered by social
security, such employer shall
39 be deemed an eligible employer only with
respect to such class or those
40 classes of employees who are covered by
social security;
41 (14) ``employee'' means
any appointed or elective officer or employee
42 of a participating employer whose
employment is not seasonal or tem-
43 porary and whose employment requires at
least 1,000 hours of work per
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1 year, but not including: (A)
Any person covered by or eligible for or who
2 will become eligible for a
retirement annuity under the provisions of
3 K.S.A. 74-4925 and amendments
thereto except as otherwise specifically
4 provided in subsection (3) of
K.S.A. 74-4925 and amendments thereto
5 and this subsection;
(B) Any employee who is a contributing member of
6 the United States civil service
retirement system; (C) any employee of an
7 eligible employer who is a
participant in public service employment under
8 title II and title VI of the
federal comprehensive employment and training
9 act of 1973; (D)
(B) any employee who is a contributing member of the
10 federal employees retirement system; and
(C) any employee or class of
11 employees specifically exempted by law.
After June 30, 1975, no person
12 who is otherwise eligible for membership in
the Kansas public employees
13 retirement system shall be barred from such
membership by reason of
14 coverage by, eligibility for or future
eligibility for a retirement annuity
15 under the provisions of K.S.A. 74-4925 and
amendments thereto, except
16 that no person shall receive service credit
under the Kansas public em-
17 ployees retirement system for any period of
service for which benefits
18 accrue or are granted under a retirement
annuity plan under the provi-
19 sions of K.S.A. 74-4925 and amendments
thereto. After June 30, 1982,
20 no person who is otherwise eligible for
membership in the Kansas public
21 employees retirement system shall be barred
from such membership by
22 reason of coverage by, eligibility for or
future eligibility for any benefit
23 under another retirement plan authorized
under any law of this state,
24 except that no such person shall receive
service credit under the Kansas
25 public employees retirement system for any
period of service for which
26 any benefit accrues or is granted under any
such retirement plan. Em-
27 ployee shall include persons who are in
training at or employed by, or
28 both, a sheltered workshop for the blind
operated by the secretary of
29 social and rehabilitation services. The
entry date for such persons shall
30 be the beginning of the first pay period of
the fiscal year commencing in
31 calendar year 1986. Such persons shall be
granted prior service credit in
32 accordance with K.S.A. 74-4913 and
amendments thereto. However, such
33 persons classified as home industry
employees shall not be covered by
34 the retirement system;
35 (15) ``entry date''
means the date as of which an eligible employer
36 joins the system. The first entry date
pursuant to this act is January 1,
37 1962;
38 (16) ``executive
secretary'' means the managing officer of the system
39 employed by the board under this act;
40 (17) ``final average
salary'' means in the case of a member who retires
41 prior to January 1, 1977, and in the case
of a member who retires after
42 January 1, 1977, and who has less than five
years of participating service
43 after January 1, 1967, the average highest
annual compensation paid to
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1 such member for any five years of the
last 10 years of participating service
2 immediately preceding retirement or
termination of employment, or in
3 the case of a member who retires on
or after January 1, 1977, and who
4 has five or more years of
participating service after January 1, 1967, the
5 average highest annual compensation
paid to such member on or after
6 January 1, 1967, for any five years
of participating service preceding re-
7 tirement or termination of
employment, or, in any case, if participating
8 service is less than five years, then
the average annual compensation paid
9 to the member during the full period
of participating service, or, in any
10 case, if the member has less than one
calendar year of participating service
11 such member's final average salary shall be
computed by multiplying such
12 member's highest monthly salary received in
that year by 12; in the case
13 of a member who became a member under
subsection (3) of K.S.A. 74-
14 4925 and amendments thereto, or who became
a member with a partic-
15 ipating employer as defined in subsection
(3) of K.S.A. 74-4931 and
16 amendments thereto and who elects to have
compensation paid in other
17 than 12 equal installments, such
compensation shall be annualized as if
18 the member had elected to receive 12 equal
installments for any such
19 periods preceding retirement; in the case
of a member who retires after
20 July 1, 1987, the average highest annual
compensation paid to such mem-
21 ber for any four years of participating
service preceding retirement or
22 termination of employment; in the case of a
member who retires on or
23 after July 1, 1993, who was first hired as
an employee, as defined in
24 subsection (14) of K.S.A. 74-4902 and
amendments thereto, prior to July
25 1, 1993, the average highest annual
compensation, as defined in subsec-
26 tion (9), paid to such member for any four
years of participating service
27 preceding retirement or termination of
employment or the average high-
28 est annual salary, as defined in subsection
(34), paid to such member for
29 any three years of participating service
preceding retirement or termi-
30 nation of employment, whichever is greater;
and in the case of a member
31 who retires on or after July 1, 1993, and
who is first hired as an employee,
32 as defined in subsection (14) of K.S.A.
74-4902 and amendments thereto,
33 on or after July 1, 1993, the average
highest annual salary, as defined in
34 subsection (34), paid to such member for
any three years of participating
35 service preceding retirement or termination
of employment. Final aver-
36 age salary shall not include any purchase
of participating service credit
37 by a member as provided in subsection (2)
of K.S.A. 74-4919h and
38 amendments thereto which is completed
within five years of retirement.
39 For any application to purchase or
repurchase service credit for a certain
40 period of service as provided by law
received by the system after May 17,
41 1994, for any member who will have
contributions deducted from such
42 member's compensation at a percentage rate
equal to two or three times
43 the employee's rate of contribution or will
begin paying to the system a
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1 lump-sum amount for such member's
purchase or repurchase and such
2 deductions or lump-sum payment
commences after the commencement
3 of the first payroll period in the
third quarter, ``final average salary'' shall
4 not include any amount of
compensation or salary which is based on such
5 member's purchase or repurchase. Any
application to purchase or repur-
6 chase multiple periods of service
shall be treated as multiple applications.
7 For purposes of this subsection, the
date that such member is first hired
8 as an employee for members who are
employees of employers that
9 elected to participate in the system
on or after January 1, 1994, shall be
10 the date that such employee's employer
elected to participate in the sys-
11 tem. In the case of any former member
who was eligible for assistance
12 pursuant to K.S.A. 74-4925 and
amendments thereto prior to July 1, 1998,
13 for the purpose of calculating the final
average salary of such member,
14 such member's final average salary shall
be based on such member's salary
15 while a member of the system or while
eligible for assistance pursuant to
16 K.S.A. 74-4925 and amendments thereto,
whichever is greater;
17 (18) ``fiscal year''
means, for the Kansas public employees retirement
18 system, the period commencing July 1 of any
year and ending June 30 of
19 the next;
20 (19) ``Kansas public
employees retirement fund'' means the fund cre-
21 ated by this act for payment of expenses
and benefits under the system
22 and referred to as the fund;
23 (20) ``leave of
absence'' means a period of absence from employment
24 without pay, authorized and approved by the
employer, and which after
25 the effective date does not exceed one
year;
26 (21) ``member'' means an
eligible employee who is in the system and
27 is making the required employee
contributions, or any former employee
28 who has made the required contributions to
the system and has not re-
29 ceived a refund;
30 (22) ``military
service'' means service in the armed forces of the
31 United States or in the United States
public health service, which service
32 is immediately preceded by a period of
employment as an employee or
33 by the entering into of an employment
contract with a participating em-
34 ployer and is followed by return to
employment as an employee with the
35 same or another participating employer
within 12 months immediately
36 following discharge from such military
service, except that if the board
37 determines that such return within 12
months was made impossible by
38 reason of a service-connected disability,
the period within which the em-
39 ployee must return to employment with a
participating employer shall be
40 extended not more than two years from the
date of discharge or separa-
41 tion from military service;
42 (23) ``normal retirement
date'' means the date on or after which a
43 member may retire with full retirement
benefits pursuant to K.S.A. 74-
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1 4914 and amendments thereto;
2
(24) ``participating employer'' means an eligible employer who
has
3 agreed to make contributions to the
system on behalf of its employees;
4
(25) ``participating service'' means the period of employment
after
5 the entry date for which credit is
granted a member;
6 (26) ``prior
service'' means the period of employment of a member
7 prior to such member's entry date for
which credit is granted a member
8 under this act;
9 (27) ``prior
service annual salary'' means the highest annual salary,
10 not including any amounts received as
payment for overtime or as re-
11 imbursement for travel or moving expense,
received for personal services
12 by the member from the current employer in
any one of the three cal-
13 endar years immediately preceding January
1, 1962, or the entry date of
14 the employer, whichever is later, except
that if a member entered the
15 employment of the state during the calendar
year 1961, the prior service
16 annual salary shall be computed by
multiplying such member's highest
17 monthly salary received in that year by
12;
18 (28) ``retirant'' means
a member who has retired under this system;
19 (29) ``retirement
benefit'' means a monthly income or the actuarial
20 equivalent thereof paid in such manner as
specified by the member pur-
21 suant to this act or as otherwise allowed
to be paid at the discretion of
22 the board, with benefits accruing from the
first day of the month coin-
23 ciding with or following retirement and
ending on the last day of the
24 month in which death occurs. Upon proper
identification a surviving
25 spouse may negotiate the warrant issued in
the name of the retirant;
26 (30) ``retirement
system'' or ``system'' means the Kansas public em-
27 ployees retirement system as established by
this act and as it may be
28 amended;
29 (31) ``social security''
means the old age, survivors and disability in-
30 surance section of the federal social
security act;
31 (32) ``total
disability'' means a physical or mental disability which pre-
32 vents the member from engaging, for
remuneration or profit, in any oc-
33 cupation for which the member is reasonably
suited by education, training
34 or experience;
35 (33) ``trust'' means an
express trust, created by a trust instrument,
36 including a will, designated by a member to
receive payment of the in-
37 sured death benefit under K.S.A. 74-4927
and amendments thereto and
38 payment of the member's accumulated
contributions under subsection
39 (1) of K.S.A. 74-4916 and amendments
thereto. A designation of a trust
40 shall be filed with the board. If there is
a designated trust at the time of
41 the member's death, the insured death
benefit for the member under
42 K.S.A. 74-4927 and amendments thereto and
the member's accumulated
43 contributions under subsection (1) of
K.S.A. 74-4916 and amendments
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1 thereto shall be paid to the trust in
lieu of the member's beneficiary. If
2 no will is admitted to probate within
six months after the death of the
3 member or no trustee qualifies within
such six months or if the designated
4 trust fails, for any reason
whatsoever, the insured death benefit under
5 K.S.A. 74-4927 and amendments thereto
and the member's accumulated
6 contributions under subsection (1) of
K.S.A. 74-4916 and amendments
7 thereto shall be paid in accordance
with the provisions of subsection (7)
8 of this section as in other cases
where there is no named beneficiary living
9 at the time of the member's death and
any payments so made shall be a
10 full discharge and release to the system
from any further claims; and
11 (34) ``salary'' means
all salary and wages payable to a member for
12 personal services performed for a
participating employer, including main-
13 tenance or any allowance in lieu thereof
provided a member as part of
14 salary. Salary shall not include
reimbursement for travel or moving ex-
15 penses, payment for accumulated sick leave
or vacation or annual leave,
16 severance pay or any other payments to the
member determined by the
17 board to not be payments for personal
services performed for a partici-
18 pating employer constituting salary or on
and after July 1, 1994, payment
19 pursuant to an early retirement incentive
program made prior to the
20 retirement of the member. When the salary
of a member who remains
21 in substantially the same position during
any two consecutive years of
22 participating service used in calculating
final average salary is increased
23 by an amount which exceeds 15%, then the
amount of such increase
24 which exceeds 15% shall not be included in
salary. Any contributions by
25 such member on the amount of such increase
which exceeds 15% which
26 is not included in compensation shall be
returned to the member. Unless
27 otherwise provided by law, salary shall
include any amounts for tax shel-
28 tered annuities or deferred compensation
plans. Salary shall include
29 amounts under sections 403b, 457 and 125 of
the federal internal revenue
30 code of 1986 and any other section of the
federal internal revenue code
31 of 1986 which defers or excludes amounts
from inclusion in income. In
32 any case, if participating service is less
than three years, then the average
33 annual salary paid to the member during the
full period of participating
34 service, or, in any case, if the member has
less than one calendar year of
35 participating service such member's final
average salary shall be com-
36 puted by multiplying such member's highest
monthly salary received in
37 that year by 12.
38 Sec. 4. K.S.A. 1997
Supp. 74-4907 is hereby amended to read as
39 follows: 74-4907. (1) The principal office
of the system shall be in quarters
40 at Topeka, Kansas. Offices shall be
assigned to the system by the secretary
41 of administration.
42 (2) The board shall keep
a complete record of all proceedings which
43 shall be open at all reasonable hours to
inspection. Any agreement in
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1 settlement of litigation involving
the system and the investment of moneys
2 of the fund shall be open for
inspection by any person and suitable facil-
3 ities shall be made available by the
system for this purpose as provided
4 by the provisions of K.S.A. 45-215 et
seq. and amendments thereto. A
5 report covering the operation of the
system for the past fiscal year, in-
6 cluding income and disbursements, and
of the financial condition of the
7 system at the end of such fiscal
year, showing the valuation of assets and
8 investments and liabilities of the
system, shall be delivered after the end
9 of each fiscal year and prior to
January 1 of the next fiscal year to the
10 governor and to the chairperson of the
legislative coordinating council,
11 to the secretary of the senate and to the
chief clerk of the house of rep-
12 resentatives and shall be made readily
available to the members and par-
13 ticipating employers of the system. Such
report shall include the financial
14 statements of the system and supporting
schedules, presented in accord-
15 ance with generally accepted accounting
principles. Such supporting
16 schedules presented in the annual report
shall include a listing which
17 reports the cost and the fiscal year end
lower amount of cost or market
18 value for each individual alternative
investment of the system which was
19 initiated on or after July 1, 1991, and
reports, in aggregate, the cost and
20 the fiscal year end lower amount of cost or
market value for those alter-
21 native investments of the system initiated
prior to July 1, 1991. The re-
22 tirement system shall maintain a listing
which reports the cost and the
23 fiscal year end lower amount of cost or
market value for each individual
24 alternative investment of the system which
was initiated prior to July 1,
25 1991, and such listing shall be available
for review in camera by the joint
26 committee on pensions, investments and
benefits and as may be required
27 under the provisions of the legislative
post audit act.
28 Sec. 5. K.S.A. 1997
Supp. 74-4911 is hereby amended to read as
29 follows: 74-4911. (1) Any employee of a
participating employer other than
30 an elected official on the entry date of
such employer shall be a member
31 of the system on either the entry date or
the first day of the payroll period
32 coinciding with or following the completion
of one year of service, which-
33 ever is later. For purposes of this act
occasional breaks in service which
34 shall not exceed an aggregate of 10 days in
any such year shall not con-
35 stitute a break in service for purposes of
determining the membership
36 date of such employee.
37 (2) Except as otherwise
provided in this subsection, any employee
38 other than an elected official who is
employed by a participating employer
39 after the entry date of such employer shall
be a member of the system
40 on the first day of the payroll period
coinciding with or following com-
41 pletion of one year of continuous service.
For purposes of this act, oc-
42 casional breaks in service which shall not
exceed an aggregate of 10 days
43 in any such year shall not constitute a
break in continuous service for
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1 purposes of determining the
membership date of such employee. For
2 purposes of this subsection, any
employee of a local governmental unit
3 which has its own pension plan who
becomes an employee of a partici-
4 pating employer as a result of a
merger or consolidation of services pro-
5 vided by local governmental units,
which occurred on January 1, 1994,
6 may count service with such local
governmental unit in determining
7 whether such employee has met the one
year of continuous service re-
8 quirement contained in this
subsection.
9 (3) Any employee
who is an elected official and is eligible to join the
10 system shall elect to become or not to
become a member of the system.
11 Such election shall become effective
immediately upon making such elec-
12 tion, if such election is made within 14
days of taking the oath of office
13 or, otherwise, on the first day of
the first payroll period of the first quarter
14 following receipt of the election in the
office of the retirement system.
15 In the event that such elected official
fails to file the election to become
16 a member of the retirement system, it shall
be presumed that such person
17 has elected not to become a member.
18 (4) Any employee other
than an elected official who is in military
19 service or on leave of absence on the entry
date of such employee's em-
20 ployer shall become a member of the system
upon returning to active
21 employment or on the first day of the
payroll period coinciding with or
22 following the completion of one year of
service, whichever is later. For
23 purposes of this act, occasional breaks in
service which shall not exceed
24 an aggregate of 10 days in any such year
shall not constitute a break in
25 service for purposes of determining the
membership date of such em-
26 ployee.
27 (5) Any employee of the
state of Kansas other than an elected official,
28 who is receiving or is eligible for
assistance by the state board of regents
29 in the purchase of a retirement annuity
under K.S.A. 74-4925, and
30 amendments thereto, and who becomes
ineligible for such assistance be-
31 cause such employee's position is
reclassified to a position in the classified
32 service under the Kansas civil service act,
or who becomes ineligible for
33 such assistance because such person accepts
and transfers to a position
34 in the classified service under the Kansas
civil service act shall be a mem-
35 ber of the system on the first day of the
payroll period coinciding with or
36 following the effective date of such
reclassification or transfer. Any such
37 employee who became ineligible for such
assistance prior to the effective
38 date of this act because of such a
reclassification or such a transfer oc-
39 curring prior to the effective date of this
act and who is not a member of
40 the system on the effective date of this
act shall be a member of the
41 system on the first day of the payroll
period coinciding with or following
42 the effective date of this act.
43 (6) Any employee of the
state board of regents or of an educational
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1 institution under its management,
other than an elected official, who is a
2 member of the system and who becomes
ineligible to be a member of
3 the system because such employee's
position is reclassified to a position
4 under the Kansas civil service act
which is eligible for assistance by the
5 state board of regents in the
purchase of a retirement annuity under
6 K.S.A. 74-4925 and amendments
thereto, or who becomes ineligible to
7 be a member of the system because
such employee transfers to a position
8 under the Kansas civil service act
which is eligible for such assistance,
9 shall become eligible for such
assistance in accordance with the provisions
10 of K.S.A. 74-4925 and amendments thereto,
unless such employee files
11 a written election in the office of the
retirement system, in the form and
12 manner prescribed by the board of trustees
thereof, to remain a member
13 of the system prior to the first day of the
first complete payroll period
14 occurring after the effective date of such
reclassification or transfer. Fail-
15 ure to file such written election shall be
presumed to be an election not
16 to remain a member of the system and to
become eligible for assistance
17 by the state board of regents in the
purchase of a retirement annuity
18 under K.S.A. 74-4925 and amendments
thereto. Such election, whether
19 to remain a member of the system or to
become eligible for such assis-
20 tance, shall be effective as of the
effective date of such reclassification or
21 transfer, and shall be irrevocable.
22 (7) Any employee who is
an elected official and is eligible to join the
23 system as a result of being an elected
official, and who at the time of
24 becoming an elected official is already a
member of the system by being
25 or having been an employee of a
participating employer shall elect to
26 continue as a member of the system or not
to continue as a member of
27 the system. Such election shall become
effective on the first day of the
28 first payroll period of the first quarter
following receipt of the election in
29 the office of the retirement system. In the
event that such elected official
30 fails to file the election to continue as a
member of the system or not to
31 continue as a member of the system, it
shall be presumed that such
32 elected official has elected to continue as
a member of the system.
33 Sec. 6. K.S.A. 1997
Supp. 74-4913 is hereby amended to read as
34 follows: 74-4913. (1) Prior service shall
be credited as follows:
35 (a) A member shall
receive full credit for continuous employment
36 prior to the entry date with such member's
employer on the entry date.
37 If the employee was employed on March 15,
1961, by the employer who
38 is the employee's employer on the
employee's entry date, then all such
39 previous employment, whether or not
continuous, shall be credited; oth-
40 erwise no credit shall be granted for
employment prior to a break in
41 continuous employment. Any member or
retirant who has been credited
42 with prior service as hereinbefore provided
and who was employed by
43 any participating employer on March 15,
1961, may apply to the board
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1 on such forms as it may prescribe for
prior service credit with a partici-
2 pating employer other than the
member's entry date employer. Upon
3 receipt of written verification of
such employment from the participating
4 employer, the board may grant such
additional prior service credit and
5 with respect to a retirant, shall
adjust the amount of the retirement ben-
6 efit accordingly commencing with the
next monthly benefit payment due
7 following receipt of the written
verification, except that such retirant shall
8 not be entitled to any retroactive
adjustment in the amount of such re-
9 tirement benefit as a result of the
board granting such additional prior
10 service credit. In the case of any person
other than a retirant receiving a
11 retirement benefit, such person may make
application for an adjustment
12 in the benefit amount in the same manner as
a member or retirant, and
13 in such case the adjustment in the benefit
amount shall be determined
14 by the board upon the advice of the
actuary, and shall commence with
15 the next monthly benefit payment due
following receipt of the written
16 verification;
17 (b) leaves of absence
and military service shall not be counted as
18 breaks in continuous employment; however,
military service which is im-
19 mediately preceded and followed by
employment with a participating
20 employer shall be credited, except that
after July 1, 1974, not more than
21 five years' credit for military service
shall be granted hereunder, but
22 leaves of absence shall not be
credited;
23 (c) any member who was
employed in the Kansas state employment
24 service, now a section of the Kansas
division of employment security,
25 during any of the time the Kansas state
employment service was loaned
26 by the state to the federal government
(January 1, 1942, for the duration
27 of the emergency period of world war II,
which service was returned to
28 the state by the federal government
effective November 16, 1946) shall
29 be entitled to prior service credit for the
time so employed during the
30 period stated for any service rendered
under the jurisdiction of the United
31 States employment service for the federal
government in like manner as
32 if the employment service had remained
under the jurisdiction of the
33 state of Kansas;
34 (d) any member who is
not otherwise eligible for service credit as
35 provided for in subsection (1)(a) may be
granted credit for the service
36 upon the attainment of 38 quarters of
participating service;
37 (e) any member who was
employed by the university of Wichita prior
38 to July 1, 1964, shall be entitled to prior
service credit for such time of
39 employment under the Kansas public
employees retirement system,
40 when such employment is not the basis for
other pension rights.
41 (2) Participating
service shall be credited as follows: (a) A member
42 shall receive credit for participating
service with a participating employer
43 in accordance with the rules and
regulations established by the board of
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1 trustees, except that no more than
one calendar quarter of participating
2 service shall be credited for any
employment within any one calendar
3 quarter;
4 (b) leaves of
absence and military service shall not count as a break
5 in continuous employment provided the
member leaves such member's
6 accumulated contribution on deposit
with the fund; however, the period
7 of military service shall be
credited, except that after July 1, 1974, not
8 more than five years' credit for
military service shall be granted here-
9 under, but leaves of absence shall
not be credited. Employees who enter
10 the military service from their employment
after the employer's entry
11 date and who have not completed one year of
service at the time of their
12 entry into the military service, shall not
become members of the retire-
13 ment system until they return to the
employment of that or another par-
14 ticipating employer. In the case of such
employee whose combined public
15 employment and military service does not
equal one year at the time of
16 such employee's return to employment, the
date of membership shall be
17 the first day of the payroll period
coinciding with or following the com-
18 pletion of one combined public employment
and military year of service.
19 Such service shall be granted in accordance
with this section;
20 (c) a period of
retirement under the system or a period of total dis-
21 ability, immediately followed by employment
with a participating em-
22 ployer, shall not count as a break in
continuous employment, except that
23 such periods while not employed shall not
be credited as participating
24 service;
25 (d) termination of
employment, followed by employment with a par-
26 ticipating employer within five years after
such termination, does not
27 constitute a break in continuous employment
if such person has not with-
28 drawn such person's accumulated
contribution. Such period while not
29 employed shall not be credited as
participating service.
30 (3) In determining the
number of years of credited prior service or
31 participating service a fractional year of
six months or more shall be con-
32 sidered as one year and a fractional year
of less than six months shall be
33 disregarded.
34 Sec. 7. K.S.A. 1997
Supp. 74-4914 is hereby amended to read as
35 follows: 74-4914. (1) The normal retirement
date for a member of the
36 system shall be the first day of the month
coinciding with or following
37 termination of employment with any
participating employer not followed
38 by employment with any participating
employer within 30 days and the
39 attainment of age 65 or, commencing
July 1, 1986, age 65 or age 60 with
40 the completion of 35 years of
credited service or at any age with the
41 completion of 40 years of credited
service, or commencing July 1, 1993,
42 any alternative normal retirement
date already prescribed by law or age
43 62 with the completion of 10 years of
credited service or the first day of
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1 the month coinciding with or
following the date that the total of the
2 number of years of credited service
and the number of years of attained
3 age of the member is equal to or more
than 85. In no event shall a normal
4 retirement date for a member be
before six months after the entry date
5 of the participating employer by whom
such member is employed. A
6 member may retire on the normal
retirement date or on the first day of
7 any month thereafter upon the filing
with the office of the retirement
8 system of an application in such form
and manner as the board shall
9 prescribe. Nothing herein shall
prevent any person, member or retirant
10 from being employed, appointed or elected
as an employee, appointee,
11 officer or member of the legislature.
Elected officers may retire from the
12 system on any date on or after the
attainment of the normal retirement
13 date, but no retirement benefits payable
under this act shall be paid until
14 the member has terminated such member's
office.
15 (2) No retirant shall
make contributions to the system or receive serv-
16 ice credit for any service after the date
of retirement.
17 (3) Any member who is an
employee of an affiliating employer pur-
18 suant to K.S.A. 74-4954b and amendments
thereto and has not withdrawn
19 such member's accumulated contributions
from the Kansas police and
20 firemen's retirement system may retire
before such member's normal
21 retirement date on the first day of any
month coinciding with or following
22 the attainment of age 55.
23 (4) Any member may
retire before such member's normal retirement
24 date on the first day of any month
coinciding with or following termination
25 of employment with any participating
employer not followed by employ-
26 ment with any participating employer
within 30 days and the attainment
27 of age 55 with the completion of 10 years
of credited service, but in no
28 event before six months after the entry
date, upon the filing with the
29 office of the retirement system of an
application for retirement in such
30 form and manner as the board shall
prescribe.
31 (5) If a retirant who
retired on or after July 1, 1988, is employed or
32 appointed in or to any position or office
for which compensation for serv-
33 ice is paid, during calendar years 1988
through 1990, in an amount equal
34 to $6,000 or more in any one such calendar
year; during calendar year
35 1991, in an amount equal to $9,720 or more;
during calendar year 1992,
36 in an amount equal to $10,200 or more;
during calendar year 1993, in an
37 amount equal to $10,560 or more; during
calendar year 1994, in an
38 amount equal to $11,160 or more; or during
calendar year 1995 and all
39 calendar years thereafter, in an amount
equal to $11,280 or more in any
40 one such calendar year, by any
participating employer for which such
41 retirant was employed or appointed during
the final two years of such
42 retirant's participation, such retirant
shall not receive any retirement ben-
43 efit for any month for which such retirant
serves in such position or office.
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17
1 Any retirant employed by a
participating employer shall not make con-
2 tributions nor receive additional
credit under such system for such service
3 except as provided by this section.
Upon request of the executive secretary
4 of the system, the secretary of
revenue shall provide such information as
5 may be needed by the executive
secretary to carry out the provisions of
6 this act. The provisions of this
subsection shall not apply to retirants em-
7 ployed as substitute teachers or
officers, employees, appointees or mem-
8 bers of the legislature or any other
elected officials.
9 (6) For purposes
of this section, any employee of a local governmental
10 unit which has its own pension plan who
becomes an employee of a
11 participating employer as a result of a
merger or consolidation of services
12 provided by local governmental units, which
occurred on January 1, 1994,
13 may count service with such local
governmental unit in determining
14 whether such employee has met the years of
credited service require-
15 ments contained in this section.
16 Sec. 8. K.S.A. 1997
Supp. 74-4917 is hereby amended to read as
17 follows: 74-4917. (1) Upon termination of
employment with a participat-
18 ing employer, not followed by employment
with such participating em-
19 ployer or another participating employer
within 30 days of such termi-
20 nation, the member shall be paid an
amount equal to the member's
21 accumulated contributions then on deposit
with the system after making
22 application in such form as may be
prescribed by the board, except that
23 the system shall have a reasonable time to
process the application for
24 withdrawal. The participating employer
shall, upon giving a terminated
25 employee a withdrawal application, certify
to the system all member con-
26 tributions which have not been reported
previously. In the case of a death
27 of an active member, the participating
employer shall certify to the system
28 all member contributions which have not
been reported previously and
29 remit such contributions if the
participating employer has not submitted
30 a monthly remittance for the terminating
quarter. The participating em-
31 ployer shall be responsible to the system
for any overpayment or under-
32 payment of member contributions made by the
system relating to a with-
33 drawal of accumulated contributions or a
death of an active member
34 which is due to an inaccurate certification
of all member contributions
35 which have not been reported to the system
as required by this section
36 made by the participating employer. A leave
of absence, a period of total
37 disability or military service shall not be
considered a termination of em-
38 ployment unless the member withdraws
accumulated contributions.
39 (2) Except as otherwise
provided by this subsection, if such member
40 has completed 10 years of credited service
at date of termination, such
41 member automatically shall be granted a
vested retirement benefit in the
42 system, except that at any time prior to
the commencement of retirement
43 benefit payments the member may withdraw
accumulated contributions,
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18
1 whereupon no other benefits shall be
payable for such member's prior
2 and participating service credit. For
purposes of this subsection, any em-
3 ployee of a local governmental unit
which has its own pension plan who
4 becomes an employee of a
participating employer as a result of a merger
5 or consolidation of services provided
by local governmental units, which
6 occurred on January 1, 1994, may
count service with such local govern-
7 mental unit in determining whether
such employee has met the 10 years
8 of credited service for vesting
requirement contained in this subsection.
9 Eligibility of such member for
retirement benefits and procedures for
10 making application for retirement benefits
shall be in accordance with
11 K.S.A. 74-4914 and amendments thereto. Such
member shall make ap-
12 plication for retirement in such form as
may be prescribed by the board
13 and retirement benefits shall accrue from
the first day of the month fol-
14 lowing receipt of such application. The
amount of the retirement benefit
15 shall be determined as provided in K.S.A.
74-4915 and amendments
16 thereto.
17 (3) Termination of
employment of a member, followed by employ-
18 ment with a participating employer within
five years after such termina-
19 tion, does not constitute a break in
continuous employment if such mem-
20 ber has not withdrawn accumulated
contributions. Such period while not
21 employed shall not be credited.
22 (4) If, after the
expiration of five years following the termination of
23 employment, a former member becomes an
employee of such former
24 member's former participating employer, or
another participating em-
25 ployer, such former member shall be deemed
to be a new employee. If
26 a member, who has a vested benefit again
becomes an employee of a
27 participating employer, any credited
service such member subsequently
28 accrues shall be added to that which had
been vested by virtue of previous
29 service. Eligibility of such member for
retirement benefits and proce-
30 dures for making application for retirement
benefits shall be in accord-
31 ance with K.S.A. 74-4914 and amendments
thereto.
32 Sec. 9. K.S.A. 1997
Supp. 74-4920 is hereby amended to read as
33 follows: 74-4920. (1) Upon the basis of
each annual actuarial valuation
34 and appraisal as provided for in subsection
(3)(a) of K.S.A. 74-4908 and
35 amendments thereto, the board shall
certify, on or before July 15 of each
36 year, to the division of the budget in the
case of the state and to the agent
37 for each other participating employer an
actuarially determined estimate
38 of the rate of contribution which will be
required, together with all ac-
39 cumulated contributions and other assets of
the system, to be paid by
40 each such participating employer to pay all
liabilities which shall exist or
41 accrue under the system, including
amortization of the actuarial accrued
42 liability over a period of 40 years
commencing on July 1, 1993, and the
43 actuarial accrued liability for members of
the faculty and other persons
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19
1 who are employed by the state board
of regents or by educational insti-
2 tutions under its management assisted
by the state board of regents in
3 the purchase of retirement annuities
as provided in K.S.A. 74-4925 and
4 amendments thereto, as provided in
this section. The actuarial accrued
5 liability for all participating
employers other than the state board of re-
6 gents relating to members of the
faculty and other persons described in
7 this section, shall be amortized by
annual payments that increase 4% for
8 each year remaining in the
amortization period. For all participating em-
9 ployers other than the state board of
regents relating to members of the
10 faculty and other persons described in this
section, the projected unit
11 credit actuarial cost method shall be used
in annual actuarial valuations,
12 commencing with the 1993 valuation, to
determine the employer contri-
13 bution rates that shall be certified by the
board. The actuarial accrued
14 liability for members of the faculty and
other persons described in this
15 subsection assisted by the state board of
regents in the purchase of re-
16 tirement annuities as provided in K.S.A.
74-4925 and amendments
17 thereto shall be amortized by annual level
payments over a period of 10
18 11 years commencing July 1, 1993.
Such certified rate of contribution
19 shall be based on the standards set forth
in subsection (3)(a) of K.S.A.
20 74-4908 and amendments thereto and shall
not be based on any other
21 purpose outside of the needs of the
system.
22 (2) The division of the
budget and the governor shall include in the
23 budget and in the budget request for
appropriations for personal services
24 the sum required to satisfy the state's
obligation under this act as certified
25 by the board and shall present the same to
the legislature for allowance
26 and appropriation.
27 (3) Each other
participating employer shall appropriate and pay to
28 the system a sum sufficient to satisfy the
obligation under this act as
29 certified by the board.
30 (4) Each participating
employer is hereby authorized to pay the em-
31 ployer's contribution from the same fund
that the compensation for which
32 such contribution is made is paid from or
from any other funds available
33 to it for such purpose. Each political
subdivision, other than an instru-
34 mentality of the state, which is by law
authorized to levy taxes for other
35 purposes, may levy annually at the time of
its levy of taxes, a tax which
36 may be in addition to all other taxes
authorized by law for the purpose of
37 making its contributions under this act
and, in the case of cities and coun-
38 ties, to pay a portion of the principal and
interest on bonds issued under
39 the authority of K.S.A. 12-1774 and
amendments thereto by cities located
40 in the county, which tax, together with any
other fund available, shall be
41 sufficient to enable it to make such
contribution. In lieu of levying the
42 tax authorized in this subsection, any
taxing subdivision may pay such
43 costs from any employee benefits
contribution fund established pursuant
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1 to K.S.A. 12-16,102 and amendments
thereto. Each participating em-
2 ployer which is not by law authorized
to levy taxes as described above,
3 but which prepares a budget for its
expenses for the ensuing year and
4 presents the same to a governing body
which is authorized by law to levy
5 taxes as described above, may include
in its budget an amount sufficient
6 to make its contributions under this
act which may be in addition to all
7 other taxes authorized by law. Such
governing body to which the budget
8 is submitted for approval, may levy a
tax sufficient to allow the partici-
9 pating employer to make its
contributions under this act, which tax, to-
10 gether with any other fund available, shall
be sufficient to enable the
11 participating employer to make the
contributions required by this act.
12 (5) The rate of
contribution certified to a participating employer as
13 provided in this section shall apply during
the fiscal year of the partici-
14 pating employer which begins in the second
calendar year following the
15 year of the actuarial valuation. For the
fiscal year commencing in calendar
16 year 1993, the employer rate of
contribution for the state of Kansas and
17 for participating employers under K.S.A.
74-4931 and amendments
18 thereto shall be 3.1% of the amount of
compensation upon which mem-
19 bers contribute during the period. For the
fiscal year commencing in
20 calendar year 1994, the employer rate of
contribution for the state of
21 Kansas and for participating employers
under K.S.A. 74-4931 and amend-
22 ments thereto shall be 3.2% of the amount
of compensation upon which
23 members contribute during the period. For
the fiscal year commencing
24 in calendar year 1994, the employer rate of
contribution for participating
25 employers other than the state of Kansas
shall be 2.2% of the amount of
26 compensation upon which members contribute
during the period. Except
27 as specifically provided in this section,
for the fiscal year commencing in
28 calendar year 1995, the rate of
contribution certified to a participating
29 employer shall in no event exceed such
participating employer's contri-
30 bution rate for the immediately preceding
fiscal year by more than 0.1%
31 of the amount of compensation upon which
members contribute during
32 the period. Except as specifically provided
in this section, for fiscal years
33 commencing in calendar year 1996 and in
each subsequent calendar year,
34 the rate of contribution certified to the
state of Kansas shall in no event
35 exceed the state's contribution rate for
the immediately preceding fiscal
36 year by more than 0.2% of the amount of
compensation upon which
37 members contribute during the period.
Except as specifically provided in
38 this section, for fiscal years commencing
in calendar year 1997 and in
39 each subsequent calendar year, the rate of
contribution certified to par-
40 ticipating employers other than the state
of Kansas shall in no event ex-
41 ceed such participating employer's
contribution rate for the immediately
42 preceding fiscal year by more than 0.15% of
the amount of compensation
43 upon which members contribute during the
period. There shall be an
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21
1 employer rate of contribution
certified to the state of Kansas and partic-
2 ipating employers under K.S.A.
74-4931 and amendments thereto. There
3 shall be a separate employer rate of
contribution certified to all other
4 participating employers other than
the state of Kansas.
5 (6) The actuarial
cost of any legislation enacted in the 1994 session
6 of the Kansas legislature will be
included in the June 30, 1994, actuarial
7 valuation in determining contribution
rates for participating employers.
8 (7) The
actuarial cost of the provisions of section 25 will be
included
9 in the June 30, 1998, actuarial
valuation in determining contribution rates
10 for participating employers. The
actuarial accrued liability incurred for
11 the provisions of section 25 for
participating employers shall be paid over
12 15 years.
13 (8) The board
with the advice of the actuary may fix the contribution
14 rates for participating employers joining
the system after one year from
15 the first entry date or for employers who
exercise the option contained
16 in K.S.A. 74-4912 and amendments thereto at
rates different from the
17 rate fixed for employers joining within one
year of the first entry date.
18 (8)
(9) Employer contributions shall in no way be limited
by any other
19 act which now or in the future establishes
or limits the compensation of
20 any member.
21 (9)
(10) Notwithstanding any provision of law to the
contrary, each
22 participating employer shall remit
quarterly, or as the board may other-
23 wise provide, all employee deductions and
required employer contribu-
24 tions to the executive secretary for credit
to the Kansas public employees
25 retirement fund within 20
three days after the end of the period covered
26 by the remittance or within 25 days
after forms or written instructions
27 from the system were mailed by the
system to such employer, whichever
28 is later by electronic
funds transfer. Remittances of such deductions and
29 contributions received after such date are
delinquent. Delinquent pay-
30 ments due under this subsection shall be
subject to interest at the rate
31 established for interest on judgments under
subsection (a) of K.S.A. 16-
32 204 and amendments thereto. At the request
of the board, delinquent
33 payments which are due or interest owed on
such payments, or both, may
34 be deducted from any other moneys payable
to such employer by any
35 department or agency of the state.
36 Sec. 10. K.S.A.
1997 Supp. 74-4921 is hereby amended to read as
37 follows: 74-4921. (1) There is hereby
created in the state treasury the
38 Kansas public employees retirement fund.
All employee and employer
39 contributions shall be deposited in the
state treasury to be credited to the
40 Kansas public employees retirement fund.
The fund is a trust fund and
41 shall be used solely for the exclusive
purpose of providing benefits to
42 members and member beneficiaries and
defraying reasonable expenses
43 of administering the fund. Investment
income of the fund shall be added
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22
1 or credited to the fund as provided
by law. All benefits payable under the
2 system, refund of contributions and
overpayments, purchases or invest-
3 ments under the law and expenses in
connection with the system unless
4 otherwise provided by law shall be
paid from the fund. The director of
5 accounts and reports is authorized to
draw warrants on the state treasurer
6 and against such fund upon the filing
in the director's office of proper
7 vouchers executed by the chairperson
or the executive secretary of the
8 board. As an alternative, payments
from the fund may be made by credits
9 to the accounts of recipients of
payments in banks, savings and loan as-
10 sociations and credit unions. A payment
shall be so made only upon the
11 written authorization and direction of the
recipient of payment and upon
12 receipt of such authorization such payments
shall be made in accordance
13 therewith. Orders for payment of such
claims may be contained on (a) a
14 letter, memorandum, telegram, computer
printout or similar writing, or
15 (b) any form of communication, other than
voice, which is registered upon
16 magnetic tape, disc or any other medium
designed to capture and contain
17 in durable form conventional signals used
for the electronic communi-
18 cation of messages.
19 (2) The board shall have
the responsibility for the management of
20 the fund and shall discharge the board's
duties with respect to the fund
21 solely in the interests of the members and
beneficiaries of the system for
22 the exclusive purpose of providing benefits
to members and such mem-
23 ber's beneficiaries and defraying
reasonable expenses of administering
24 the fund and shall invest and reinvest
moneys in the fund and acquire,
25 retain, manage, including the exercise of
any voting rights and disposal of
26 investments of the fund within the
limitations and according to the pow-
27 ers, duties and purposes as prescribed by
this section.
28 (3) Moneys in the fund
shall be invested and reinvested to achieve
29 the investment objective which is
preservation of the fund to provide
30 benefits to members and member
beneficiaries, as provided by law and
31 accordingly providing that the moneys are
as productive as possible, sub-
32 ject to the standards set forth in this
act. No moneys in the fund shall be
33 invested or reinvested if the sole or
primary investment objective is for
34 economic development or social purposes or
objectives.
35 (4) In investing and
reinvesting moneys in the fund and in acquiring,
36 retaining, managing and disposing of
investments of the fund, the board
37 shall exercise the judgment, care, skill,
prudence and diligence under the
38 circumstances then prevailing, which
persons of prudence, discretion and
39 intelligence acting in a like capacity and
familiar with such matters would
40 use in the conduct of an enterprise of like
character and with like aims
41 by diversifying the investments of the fund
so as to minimize the risk of
42 large losses, unless under the
circumstances it is clearly prudent not to
43 do so, and not in regard to speculation but
in regard to the permanent
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1 disposition of similar funds,
considering the probable income as well as
2 the probable safety of their
capital.
3
(5) Notwithstanding subsection (4): (a) Total investments in
common
4 stock may be made in the amount of up
to 60% of the total book value
5 of the fund;
6 (b) the board may
invest or reinvest moneys of the fund in alternative
7 investments if the following
conditions are satisfied:
8 (i) The total of
such alternative investments does not exceed more
9 than 5% of the total investment
assets of the fund. If the total of such
10 alternative investments exceeds more than
5% of the total investment
11 assets of the fund on the effective date of
this act, the board shall not
12 invest or reinvest any moneys of the fund
in alternative investments until
13 the total of such alternative investments
is less the 5% of the total in-
14 vestment assets of the fund subject to the
5% limitation contained in this
15 subsection. Nothing in this subsection
requires the board to liquidate or
16 sell the system's holdings in any
alternative investment held by the system
17 on the effective date of this act, unless
such liquidation or sale would be
18 in the best interest of the members and
beneficiaries of the system and
19 be prudent under the standards contained in
this section. The 5% limi-
20 tation contained in this section shall not
have been violated if the total of
21 such alternative investments exceeds 5% of
the total investment assets of
22 the fund as a result of market forces
acting to increase the value of such
23 alternative investments relative to the
rest of the system's investments;
24 however, the board shall not invest or
reinvest any moneys of the fund
25 in alternative investments until the total
of such alternative investments
26 is less than 5% of the total investment
assets of the fund subject to the
27 5% limitation contained in this
subsection;
28 (ii) if in addition to
the system, there are at least two other sophisti-
29 cated investors, as defined by section 301
of the securities and exchange
30 act of 1933;
31 (iii) the system's share
in any individual alternative investment is lim-
32 ited to an investment representing not more
than 20% of any such indi-
33 vidual alternative investment;
34 (iv) the system has
received a favorable and appropriate recommen-
35 dation from a qualified, independent expert
in investment management
36 or analysis in that particular type of
alternative investment;
37 (v) the alternative
investment is consistent with the system's invest-
38 ment policies and objectives as provided in
subsection (6);
39 (vi) the individual
alternative investment does not exceed more than
40 2.5% of the total alternative investments
made under this subsection. If
41 the alternative investment is made pursuant
to participation by the system
42 in a multi-investor pool, the 2.5%
limitation contained in this subsection
43 is applied to the underlying individual
assets of such pool and not to
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24
1 investment in the pool itself. The
total of such alternative investments
2 made pursuant to participation by the
system in any one individual multi-
3 investor pool shall not exceed more
than 20% of the total of alternative
4 investments made by the system
pursuant to this subsection. Nothing in
5 this subsection requires the board to
liquidate or sell the system's holdings
6 in any alternative investments made
pursuant to participation by the sys-
7 tem in any one individual
multi-investor pool held by the system on the
8 effective date of this act, unless
such liquidation or sale would be in the
9 best interest of the members and
beneficiaries of the system and be pru-
10 dent under the standards contained in this
section. The 20% limitation
11 contained in this subsection shall not have
been violated if the total of
12 such investment in any one individual
multi-investor pool exceeds 20%
13 of the total alternative investments of the
fund as a result of market forces
14 acting to increase the value of such a
multi-investor pool relative to the
15 rest of the system's alternative
investments; however, the board shall not
16 invest or reinvest any moneys of the fund
in any such individual multi-
17 investor pool until the value of such
individual multi-investor pool is less
18 than 20% of the total alternative
investments of the fund;
19 (vii) the board has
received and considered the investment manager's
20 due diligence findings submitted to the
board as required by subsection
21 (6)(c); and
22 (viii) prior to the time
the alternative investment is made, the system
23 has in place procedures and systems to
ensure that the investment is
24 properly monitored and investment
performance is accurately measured.
25 For purposes of this act,
``alternative investment'' means nontraditional
26 investments outside the established
nationally recognized public stock
27 exchanges and government securities market.
Alternative investments
28 shall include, but not be limited to,
private placements, venture capital,
29 partnerships, limited partnerships and
leveraged buyout partnerships;
30 (c) except as otherwise
provided, the board may invest or reinvest
31 moneys of the fund in real estate
investments if the following conditions
32 are satisfied:
33 (i) If, in
addition to the system, there are at least two other
sophis-
34 ticated investors, as defined by
section 301 of the securities and exchange
35 act of 1933;
36 (ii) the
system's share in any individual real estate investment is
lim-
37 ited to an investment representing
not more than 20% of any such indi-
38 vidual real estate
investment;
39
(iii) The system has received a favorable and
appropriate recommen-
40 dation from a qualified, independent expert
in investment management
41 or analysis in that particular type of real
estate investment;
42 (iv)
(ii) the real estate investment is consistent with the
system's in-
43 vestment policies and objectives as
provided in subsection (6); and
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1 (v) the
total of such real estate investments made pursuant to
partic-
2 ipation by the system in any
one individual multi-investor pool shall not
3 exceed more than 20% of the
total of real estate investments made by
4 the system pursuant to this
subsection. Nothing in this subsection re-
5 quires the board to liquidate
or sell the system's holdings in any real estate
6 investments made pursuant to
participation by the system in any one
7 individual multi-investor
pool held by the system on the effective date of
8 this act, unless such
liquidation or sale would be in the best interest of
9 the members and beneficiaries
of the system and be prudent under the
10 standards contained in this
section. The 20% limitation contained in this
11 subsection shall not have been
violated if the total of such investment in
12 any one individual multi-investor
pool exceeds 20% of the total real estate
13 investments of the fund as a result
of market forces acting to increase the
14 value of such a multi-investor pool
relative to the rest of the system's real
15 estate investments; however, the
board shall not invest or reinvest any
16 moneys of the fund in any such
individual multi-investor pool until the
17 value of such individual
multi-investor pool is less than 20% of the total
18 real estate investments of the
fund;
19 (vi)
(iii) the board has received and considered the
investment man-
20 ager's due diligence findings submitted to
the board as required by sub-
21 section (6)(c);
22 (vii) prior to
the time the real estate investment is made, the
system
23 has in place procedures and systems
to ensure that the investment is
24 properly monitored and investment
performance is accurately measured;
25 and
26 (viii) the
provisions of this subsection shall not apply to any real
estate
27 investment held by the system on
July 1, 1992; and
28 (d) the board shall not
invest or reinvest moneys of the fund in any
29 banking institution, savings and loan
association or credit union which
30 positions the system as a shareholder or
owner of such banking institution,
31 savings and loan association or credit
union.
32 (6) Subject to the
objective set forth in subsection (3) and the stan-
33 dards set forth in subsections (4) and (5)
the board shall formulate policies
34 and objectives for the investment and
reinvestment of moneys in the fund
35 and the acquisition, retention, management
and disposition of invest-
36 ments of the fund. Such policies and
objectives shall include:
37 (a) Specific asset
allocation standards and objectives;
38 (b) establishment of
criteria for evaluating the risk versus the poten-
39 tial return on a particular investment;
40 (c) a requirement that
all investment managers submit such man-
41 ager's due diligence findings on each
investment to the board or invest-
42 ment advisory committee for approval or
rejection prior to making any
43 alternative investment;
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1 (d) a requirement
that all investment managers shall immediately re-
2 port all instances of default on
investments to the board and provide the
3 board with recommendations and
options, including, but not limited to,
4 curing the default or withdrawal from
the investment; and
5 (e) establishment
of criteria that would be used as a guideline for
6 determining when no additional add-on
investments or reinvestments
7 would be made and when the investment
would be liquidated.
8 The board shall review
such policies and objectives, make changes con-
9 sidered necessary or desirable and
readopt such policies and objectives
10 on an annual basis.
11 (7) The board may enter
into contracts with one or more persons
12 whom the board determines to be qualified,
whereby the persons under-
13 take to perform the functions specified in
subsection (2) to the extent
14 provided in the contract. Performance of
functions under contract so
15 entered into shall be paid pursuant to
rates fixed by the board subject to
16 provisions of appropriation acts and shall
be based on specific contractual
17 fee arrangements. The system shall not pay
or reimburse any expenses of
18 persons contracted with pursuant to this
subsection, except that after
19 approval of the board, the system may pay
approved investment related
20 expenses subject to provisions of
appropriation acts. The board shall re-
21 quire that a person contracted with to
obtain commercial insurance which
22 provides for errors and omissions coverage
for such person in an amount
23 to be specified by the board, provided that
such coverage shall be at least
24 the greater of $500,000 or 1% of the funds
entrusted to such person up
25 to a maximum of $10,000,000. The board
shall require a person con-
26 tracted with to give a fidelity bond in a
penal sum as may be fixed by law
27 or, if not so fixed, as may be fixed by the
board, with corporate surety
28 authorized to do business in this state.
Such persons contracted with the
29 board pursuant to this subsection and any
persons contracted with such
30 persons to perform the functions specified
in subsection (2) shall be
31 deemed to be agents of the board and the
system in the performance of
32 contractual obligations.
33 (8) (a) In the
acquisition or disposition of securities, the board may
34 rely on the written legal opinion of a
reputable bond attorney or attorneys,
35 the written opinion of the attorney of the
investment counselor or man-
36 agers, or the written opinion of the
attorney general certifying the legality
37 of the securities.
38 (b) The board shall
employ or retain qualified investment counsel or
39 counselors or may negotiate with a trust
company to assist and advise in
40 the judicious investment of funds as herein
provided.
41 (9) (a) Except as
provided in subsection (7) and this subsection, the
42 custody of money and securities of the fund
shall remain in the custody
43 of the state treasurer, except that the
board may arrange for the custody
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1 of such money and securities as it
considers advisable with one or more
2 member banks or trust companies of
the federal reserve system or with
3 one or more banks in the state of
Kansas, or both, to be held in safe-
4 keeping by the banks or trust
companies for the collection of the principal
5 and interest or other income or of
the proceeds of sale. The services
6 provided by the banks or trust
companies shall be paid pursuant to rates
7 fixed by the board subject to
provisions of appropriation acts.
8 (b) The state
treasurer and the board shall collect the principal and
9 interest or other income of
investments or the proceeds of sale of secu-
10 rities in the custody of the state
treasurer and pay same when so collected
11 into the fund.
12 (c) The principal and
interest or other income or the proceeds of sale
13 of securities as provided in clause (a) of
this subsection (9) shall be re-
14 ported to the state treasurer and the board
and credited to the fund.
15 (10) The board shall
with the advice of the director of accounts and
16 reports establish the requirements and
procedure for reporting any and
17 all activity relating to investment
functions provided for in this act in order
18 to prepare a record monthly of the
investment income and changes made
19 during the preceding month. The record will
reflect a detailed summary
20 of investment, reinvestment, purchase, sale
and exchange transactions
21 and such other information as the board may
consider advisable to reflect
22 a true accounting of the investment
activity of the fund.
23 (11) The board shall
provide for an examination of the investment
24 program annually. The examination shall
include an evaluation of current
25 investment policies and practices and of
specific investments of the fund
26 in relation to the objective set forth in
subsection (3), the standard set
27 forth in subsection (4) and other criteria
as may be appropriate, and rec-
28 ommendations relating to the fund
investment policies and practices and
29 to specific investments of the fund as are
considered necessary or desir-
30 able. The board shall include in its annual
report to the governor as pro-
31 vided in K.S.A. 74-4907, and amendments
thereto, a report or a summary
32 thereof covering the investments of the
fund.
33 (12) (a) The
legislative post auditor shall conduct an annual financial-
34 compliance audit of the system, performance
audits of the system as pre-
35 scribed by this section and under the
Kansas governmental operations
36 law, and such other audits as are directed
by the legislative post audit
37 committee under the Kansas legislative post
audit act. The annual finan-
38 cial-compliance audit shall include, but
not be limited to, a review of
39 alternative investments of the system with
any estimates of permanent
40 impairments to the value of such
alternative investments reported by the
41 system pursuant to K.S.A. 74-4907, and
amendments thereto.
42 (b) Except as otherwise
provided by this subsection, the legislative
43 post auditor shall conduct annual
performance audits, as directed by the
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1 legislative post audit committee,
which shall include, but not be limited
2 to, one or more of the following
subjects: An evaluation of the perform-
3 ance of investment managers, an
evaluation of the rates of return of in-
4 vestments reported by the system, an
evaluation of the total compensation
5 received for the planned year by
investment managers by individual in-
6 vestment classification, and a
comparison of the system's investment prac-
7 tices and performance with the
investment practices and performance of
8 other state pension programs by asset
type, including all asset types de-
9 scribed as alternative investments in
subsection (5)(b). Commencing with
10 the performance audit for the fiscal year
ending June 30, 1994, the leg-
11 islative post audit committee shall specify
which of the subjects listed in
12 this subsection shall be included in each
performance audit conducted
13 pursuant to this subsection, in addition to
such other subjects as may be
14 directed to be included in the performance
audit by the legislative post
15 audit committee. Commencing with the
performance audit for the fiscal
16 year ending June 30, 1994, each of the
subjects listed in this subsection
17 shall be included at least once every two
fiscal years in a performance
18 audit conducted pursuant to this
subsection, excluding any fiscal year
19 during which the system and the board are
subject to review and evalu-
20 ation by the legislature under the Kansas
governmental operations ac-
21 countability law. Except as otherwise
directed by the legislative post audit
22 committee, no performance audit shall be
conducted pursuant to this
23 subsection during any fiscal year when the
system and the board are
24 subject to a performance audit and to
review and evaluation under the
25 Kansas governmental operations
accountability law.
26 (c) The auditor to
conduct any audit required pursuant to this sub-
27 section shall be specified in accordance
with K.S.A. 46-1122, and amend-
28 ments thereto. If the legislative post
audit committee specifies under such
29 statute that a firm, as defined by K.S.A.
46-1112, and amendments
30 thereto, is to perform all or part of the
audit work of such audit, such
31 firm shall be selected and shall perform
such audit work as provided in
32 K.S.A. 46-1123, and amendments thereto, and
K.S.A. 46-1125 through
33 46-1127, and amendments thereto. The audits
required pursuant to this
34 subsection shall be conducted in accordance
with generally accepted gov-
35 ernmental auditing standards. The audits
required pursuant to this sub-
36 section shall be conducted as soon after
the close of the fiscal year as
37 practicable, but shall be completed no
later than six months after the
38 close of the fiscal year. The post auditor
shall annually compute the rea-
39 sonably anticipated cost of providing the
financial-compliance audit pur-
40 suant to this section, subject to review
and approval by the contract audit
41 committee established by K.S.A. 46-1120,
and amendments thereto.
42 Upon such approval, the system shall
reimburse the division of post audit
43 for the amount approved by the contract
audit committee. The furnishing
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1 of the financial-compliance audit
pursuant to this section shall be a trans-
2 action between the legislative post
auditor and the system and shall be
3 settled in accordance with the
provisions of K.S.A. 75-5516, and amend-
4 ments thereto.
5 (d) Any internal
assessment or examination of alternative investments
6 of the system performed by any person
or entity employed or retained
7 by the board which evaluates or
monitors the performance of alternative
8 investments shall be reported to the
legislative post auditor so that such
9 report may be reviewed in accordance
with the annual audits provided in
10 subsection (12)(a).
11 Sec. 11. K.S.A.
1997 Supp. 74-4937 is hereby amended to read as
12 follows: 74-4937. (1) The normal retirement
date of a member of the
13 system who is in school employment and who
is subject to K.S.A. 74-
14 4940 and amendments thereto shall be the
first day of the month coin-
15 ciding with or following termination of
employment not followed by em-
16 ployment with any participating employer
within 30 days and the end of
17 the school fiscal year in which the member
attains age 65 or, commencing
18 July 1, 1986, age 65 or age 60 with the
completion of 35 years of credited
19 service or at any age with the completion
of 40 years of credited service,
20 or commencing July 1, 1993, any alternative
normal retirement date al-
21 ready prescribed by law or age 62 with the
completion of 10 years of
22 credited service or the first day of the
month coinciding with or following
23 the date that the total of the number of
years of credited service and the
24 number of years of attained age of the
member is equal to or more than
25 85. Each member upon giving prior notice to
the appointing authority
26 and the retirement system may retire on the
normal retirement date or
27 the first day of any month thereafter.
28 (2) Any member who is in
school employment and who is subject to
29 K.S.A. 74-4940 and amendments thereto may
retire before such mem-
30 ber's normal retirement date on the first
day of the month coinciding with
31 or following termination of employment
not followed by employment with
32 any participating employer within 30
days and the completion of the
33 school fiscal year in which such member
attained age 55 with the com-
34 pletion of 10 years of credited service,
upon the filing with the office of
35 the retirement system of an application for
retirement in such form and
36 manner as the board shall prescribe.
37 (3) No member who begins
a year of school employment and who is
38 subject to K.S.A. 74-4940 and amendments
thereto may retire until the
39 first day of the month coinciding with or
following the end of the current
40 school fiscal year unless good cause is
shown and such retirement is
41 agreed to by the participating employer and
the board.
42 (4) As used in this
section ``school fiscal year'' means the twelve-
43 month period beginning July 1 and ending
June 30.
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1
Sec. 12. K.S.A. 1997 Supp. 74-4952 is hereby amended to
read as
2 follows: 74-4952. As used in K.S.A.
74-4951 et seq. and amendments
3 thereto:
4 (1) ``Accumulated
contributions'' means the sum of all contributions
5 by a member to the system which shall
be credited to the member's
6 account with interest allowed thereon
after June 30, 1982.
7 (2) ``Disability''
means the total inability to perform permanently the
8 duties of the position of a policeman
or fireman.
9 (3) ``Eligible
employer'' means any city, county, township or other
10 political subdivision of the state
employing one or more employees as
11 firemen or policemen.
12 (4) ``Employee'' means
any policeman or fireman employed by a par-
13 ticipating employer whose employment for
police or fireman purposes is
14 not seasonal or temporary and requires at
least 1,000 hours of work per
15 year.
16 (5) ``Entry date'' means
the date as of which an eligible employer
17 joins the system; the first entry date
pursuant to this act is January 1,
18 1967.
19 (6) ``Final average
salary'' means:
20 (a) For members who are
first hired as an employee, as defined in
21 subsection (4), before July 1, 1993, the
average highest annual compen-
22 sation paid to a member for any three of
the last five years of participating
23 service immediately preceding retirement or
termination of employment,
24 or if participating service is less than
three years, then the average annual
25 compensation paid to the member during the
full period of participating
26 service, or if a member has less than one
calendar year of participating
27 service, then the member's final average
salary shall be computed by
28 multiplying the member's highest monthly
salary received in that year by
29 12;
30 (b) for members who are
first hired as an employee, as defined in
31 subsection (4), on and after July 1, 1993,
the average highest annual salary,
32 as defined in subsection (34) of K.S.A.
74-4902 and amendments thereto,
33 paid to a member for any three of the last
five years of participating
34 service immediately preceding retirement or
termination of employment,
35 or if participating service is less than
three years, then the average annual
36 salary, as defined in subsection (34) of
K.S.A. 74-4902 and amendments
37 thereto, paid to the member during the full
period of participating service,
38 or if a member has less than one calendar
year of participating service,
39 then the member's final average salary
shall be computed by multiplying
40 the member's highest monthly salary
received in that year by 12;
41 (c) for purposes of
subparagraphs (a) and (b) of this subsection, the
42 date that such member is first hired as an
employee for members who
43 are employees of employers that elected to
participate in the system on
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31
1 or after January 1, 1994, shall be
the date that such employee's employer
2 elected to participate in the system;
and
3 (d) for any
application to purchase or repurchase service credit for a
4 certain period of service as provided
by law received by the system after
5 May 17, 1994, for any member who will
have contributions deducted from
6 such member's compensation at a
percentage rate equal to two or three
7 times the employee's rate of
contribution or who will have contributions
8 deducted from such member's
compensation at an additional rate of con-
9 tribution, in addition to the
employee's rate of contribution as provided
10 in K.S.A. 74-4919 and amendments thereto or
will begin paying to the
11 system a lump-sum amount for such member's
purchase or repurchase,
12 and such deductions or lump-sum payment
commences after the com-
13 mencement of the first payroll period in
the third quarter, ``final average
14 salary'' shall not include any amount of
compensation or salary which is
15 based on such member's purchase or
repurchase. Any application to pur-
16 chase or repurchase multiple periods of
service shall be treated as mul-
17 tiple applications.
18 (7) ``Retirement
benefit'' means a monthly income or the actuarial
19 equivalent thereof paid in such manner as
specified by the member as
20 provided under the system or as otherwise
allowed to be paid at the
21 discretion of the board, with benefits
accruing from the first day of the
22 month coinciding with or following
retirement and ending on the last day
23 of the month in which death occurs. Upon
proper identification such
24 surviving spouse may negotiate the warrant
issued in the name of the
25 retirant.
26 (8) ``Normal retirement
date'' means the date on or after which a
27 member may retire with eligibility for
retirement benefits for age and
28 service as provided in subsections (1) and
(3) of K.S.A. 74-4957 and
29 amendments thereto;
30 (9) ``Retirement
system'' or ``system'' means the Kansas police and
31 firemen's retirement system as established
by this act and as it may be
32 hereafter amended.
33
(10) ``Service-connected'' means with regard to a death or any
phys-
34 ical or mental disability, any such death
or disability resulting from ex-
35 ternal force, violence or disease
occasioned by an act of duty as a police-
36 man or fireman and, for any member after
five years of credited service,
37 includes there shall be
a rebuttable presumption, that any death or disa-
38 bility resulting from a heart disease or
disease of the lung or respiratory
39 tract or cancer as provided in this
subsection, except that in the event
40 that the member ceases to be a contributing
member except by reason
41 of a service-connected disability for a
period of six months or more and
42 then again becomes a contributing member,
the provision relating to
43 death or disability resulting from a heart
disease, disease of the lung or
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32
1 respiratory tract or cancer as
provided in this subsection shall not apply
2 until such member has again become a
contributing member for a period
3 of not less than two years or unless
clear and precise evidence is presented
4 that the heart disease, disease of
the lung or respiratory tract or cancer
5 as provided in this subsection was in
fact occasioned by an act of duty as
6 a policeman or fireman. If the
retirement system receives evidence to the
7 contrary of such presumption, the
burden of proof shall be on the member
8 or other party to present evidence
that such death or disability was serv-
9 ice-connected. The provisions
of this section relating to the presumption
10 that the death or disability resulting from
cancer is service-connected shall
11 only apply if the condition that caused the
death or disability is a type of
12 cancer which may, in general, result from
exposure to heat, radiation or
13 a known carcinogen.
14 (11) Prior to July 1,
1998, ``fireman'' or ``firemen'' means an employee
15 assigned to the fire department and engaged
in the fighting and extin-
16 guishment of fires and the protection of
life and property therefrom or
17 in support thereof and who is specifically
designated, appointed, com-
18 missioned or styled as such by the
governing body or city manager of the
19 participating employer and certified to the
retirement system as such. On
20 and after July 1, 1998, ``fireman'' or
``firemen'' means an employee as-
21 signed to the fire department whose
principal duties are engagement in
22 the fighting and extinguishment of fires
and the protection of life and
23 property therefrom and who is
specifically designated, appointed, com-
24 missioned or styled as such by the
governing body or city manager of the
25 participating employer and certified to
the retirement system as such.
26 (12) Prior to July 1,
1998, ``police,'' ``policeman'' or ``policemen''
27 means an employee assigned to the police
department and engaged in
28 the enforcement of law and maintenance of
order within the state and its
29 political subdivisions, including sheriffs
and sheriffs' deputies, or in sup-
30 port thereof and who is specifically
designated, appointed, commissioned
31 or styled as such by the governing body or
city manager of the partici-
32 pating employer and certified to the
retirement system as such. On and
33 after July 1, 1998, ``police,''
``policeman'' or ``policemen'' means an em-
34 ployee assigned to the police department
whose principal duties are en-
35 gagement in the enforcement of law and
maintenance of order within the
36 state and its political subdivisions,
including sheriffs and sheriffs' deputies
37 whose position requires certification as
provided pursuant to K.S.A. 74-
38 5601 et seq. and
amendments thereto; and who is specifically designated,
39 appointed, commissioned or styled as
such by the governing body or city
40 manager of the participating employer
and certified to the retirement
41 system as such.
42 (13) Except as otherwise
defined in this act, words and phrases used
43 in K.S.A. 74-4951 et seq. and amendments
thereto, shall have the same
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33
1 meanings ascribed to them as are
defined in K.S.A. 74-4902 and amend-
2 ments thereto.
3
Sec. 13. K.S.A. 74-4953 is hereby amended to read as
follows: 74-
4 4953. There is hereby created the
``Kansas police and firemen's retire-
5 ment system'' which shall be a
division of the Kansas public employees
6 retirement system created by K.S.A.
74-4903, and which shall be and
7 amendments thereto and is
subject to the provisions of K.S.A. 74-4901 to
8 74-4926 et
seq. and amendments thereto.
9
Sec. 14. K.S.A. 1997 Supp. 74-4956 is hereby amended to
read as
10 follows: 74-4956. (1) Prior service shall
be credited as follows:
11 (a) Each member shall
receive:
12 (i) Full credit for all
employment, whether or not continuous, as ei-
13 ther a policeman or fireman prior to the
entry date with such member's
14 employer who is such member's employer on
the entry date;
15 (ii) full credit for all
employment, whether or not continuous, as ei-
16 ther a police or fireman prior to the entry
date of such police or firemen's
17 employer, with a participating employer, if
such member has at least 20
18 years of credited service; and
19 (iii) for all continuous
employment with the same employer other
20 than either as policeman or fireman,
immediately preceding such service
21 as a policeman or fireman, 12
months 1 month of credit for each
24 2
22 months of service. Any member or retirant
who has been credited with
23 prior service as provided in this section
may apply to the board on such
24 forms as the board prescribes for prior
service credit with a participating
25 employer under the Kansas police and
firemen's retirement system other
26 than such member's entry date employer.
Each member shall receive full
27 credit for all employment as either a
policeman or fireman with such
28 other participating employers and shall
receive 12 months 1 month of
29 credit for each 24
2 months of continuous service with other participating
30 employers for continuous employment
preceding service as a policeman
31 or fireman. Upon receipt of written
verification of such employment from
32 such other participating employer, the
board may grant such additional
33 prior service credit. With respect to a
retirant, the board shall adjust the
34 amount of the retirement benefit
accordingly commencing with the next
35 monthly benefit payment due following
receipt of written verification. In
36 the case of any person other than a
retirant receiving a retirement benefit,
37 such person may make application for an
adjustment in the benefit
38 amount in the same manner as a member or
retirant, and in such case
39 the adjustment in the benefit amount shall
be determined by the board
40 upon the advice of the actuary, and shall
commence with the next monthly
41 benefit payment due following receipt of
written verification, except that
42 no additional prior service credit shall be
granted for any service with
43 another participating employer for which
benefits are being received or
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34
1 will be received. A retirant or
any other person receiving a retirement
2 benefit shall not be entitled to
any retroactive adjustment in the amount
3 of retirement benefit as a result
of the board granting such additional
4 prior service credit.
5 If a member was
employed as a fireman (other than as a
volunteer
6 fireman), by
a township which is annexed by a participating employer the
7 member's retirement benefits and
death and disability benefits shall be
8 computed on the basis of credited
service. Continuous service as a fire-
9 man with a township prior to
annexation by a member, who became a
10 member immediately following the
annexation, shall be considered cred-
11 ited service.
12 No such service shall be
considered credited service for the purpose
13 of computing years of service if such
fireman is receiving or will become
14 eligible to receive benefits as a result of
such service with the township.
15 (b) Leaves of absence
and military service shall not be counted as
16 breaks in continuous employment; however,
military service which is pre-
17 ceded within 30 days and followed by
employment with a participating
18 employer shall be credited, except that
after July 1, 1974, not more than
19 five years credit for military service
shall be granted hereunder, but leaves
20 of absence shall not be credited.
21 (2) Participating
service shall be credited as follows: (a) A member
22 shall receive credit for participating
service with a participating employer
23 in accordance with the rules and
regulations established by the board. No
24 more than one calendar quarter of
participating service shall be credited
25 for employment within any one calendar
quarter.
26 (b) Leaves of absence
shall not be counted as a termination of em-
27 ployment provided the member leaves such
member's accumulated con-
28 tributions on deposit with the system and
returns to employment with
29 the employer granting such leave; however,
the period of leave of absence
30 shall not be credited service.
31 (c) Military service
shall not count as a break in continuous employ-
32 ment provided the member leaves such
member's accumulated contri-
33 butions on deposit with the system and
returns to employment within 12
34 months of such member's discharge from
military service without vol-
35 untarily extending such member's service.
Such member shall receive
36 credited service for such period of
military service.
37 (d) Termination of
employment with a participating employer fol-
38 lowed by employment with the same or
another participating employer
39 within two years shall not constitute a
termination of membership pro-
40 vided the member leaves such member's
accumulated contributions on
41 deposit with the system; however, the
period while not employed shall
42 not be credited.
43 (3) In determining the
number of years of credited service for cal-
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35
1 culation of retirement benefits a
fractional year of six months or more of
2 credited service shall be considered
as one year and a fractional year of
3 less than six months of credited
service shall be disregarded.
4
Sec. 15. K.S.A. 1997 Supp. 74-4957 is hereby amended to
read as
5 follows: 74-4957. (1) The normal
retirement date for a member of the
6 system who is appointed or employed
prior to July 1, 1989, and who does
7 not make an election pursuant to
K.S.A. 74-4955a shall be the first day
8 of the month coinciding with or
following termination of employment not
9 followed by employment with any
participating employer within 30 days
10 and the attainment of age 55 and the
completion of 20 years of credited
11 service. Any member may retire on such
member's normal retirement
12 date or on the first day of any month
thereafter.
13 (2) Early
retirement. Any member who is appointed or employed
14 prior to July 1, 1989, and who does not
make an election pursuant to
15 K.S.A. 74-4955a and amendments thereto may
retire before such mem-
16 ber's normal retirement date on the first
day of any month coinciding
17 with or following termination of
employment not followed by employment
18 with any participating employer within
30 days and the attainment of
19 age 50 and the completion of 20 years of
credited service.
20 (3) Notwithstanding the
provisions of subsections (1) and (2) of this
21 section and K.S.A. 74-4955a, 74-4957a,
74-4958a, 74-4960a, 74-4963a and
22 74-4964a and amendments thereto, the normal
retirement date for any
23 member who was, up to the entry date of
such member's employer, cov-
24 ered by a pension system under the
provisions of K.S.A. 13-14a01 to
25 13-14a14, inclusive, or 14-10a01 to
14-10a15, inclusive, and amendments
26 thereto, shall be the first day of the
month coinciding with or following
27 the attainment of age 50 and the completion
of 25 years of credited serv-
28 ice.
29 (4) In no event shall a
member be eligible to retire until such member
30 has been a contributing member of the
system for 12 months of partici-
31 pating service, and shall have given such
member's employer prior notice
32 of retirement.
33 (5) If a retirant who
retired on or after July 1, 1994, is employed,
34 elected or appointed in or to any position
or office for which compensa-
35 tion for service is paid, during calendar
year 1994, in an amount equal to
36 $11,160 or more; or during calendar year
1995 and all calendar years
37 thereafter, in an amount equal to $11,280
or more in any one such cal-
38 endar year, by the same state agency or the
same police or fire department
39 of any county, city, township or special
district or the same sheriff's office
40 of a county during the final two years of
such retirant's participation, such
41 retirant shall not receive any retirement
benefit for any month for which
42 such retirant serves in such position or
office. Any retirant employed by
43 a participating employer in the Kansas
police and firemen's retirement
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36
1 system shall not make contributions
nor receive additional credit under
2 such system for such service except
as provided by this section. Upon
3 request of the executive secretary of
the system, the secretary of revenue
4 shall provide such information as may
be needed by the executive sec-
5 retary to carry out the provisions of
this act.
6
Sec. 16. K.S.A. 1997 Supp. 74-4957a is hereby amended to
read as
7 follows: 74-4957a. (1) The normal
retirement date for a member of the
8 system who is appointed or employed
on or after July 1, 1989, or who
9 makes an election pursuant to K.S.A.
74-4955a and amendments thereto
10 to be covered by the provisions of this act
shall be the first day of the
11 month coinciding with or following
termination of employment not fol-
12 lowed by employment with any
participating employer within 30 days
13 and the attainment of age 55 and the
completion of 20 years of credited
14 service, age 50 and the completion of 25
years of credited service or age
15 60 with the completion of 15 years of
credited service. Any such member
16 may retire on such member's normal
retirement date or on the first day
17 of any month thereafter.
18 (2) Any member may
retire before such member's normal retirement
19 date on the first day of any month
coinciding with or following termination
20 of employment not followed by employment
with any participating em-
21 ployer within 30 days and the
attainment of age 50 and the completion
22 of 20 years of credited service.
23 (3) In no event shall a
member be eligible to retire until such member
24 has been a contributing member of the
system for 12 months of partici-
25 pating service, and shall have given such
member's employer prior notice
26 of retirement.
27 (4) If a retirant who
retired on or after July 1, 1996, is employed,
28 elected or appointed in or to any position
or office for which compensa-
29 tion for service is paid, during calendar
year 1995 and all calendar years
30 thereafter, in an amount equal to $11,280
or more in any one such cal-
31 endar year, by the same state agency or the
same police or fire department
32 of any county, city, township or special
district or the same sheriff's office
33 of a county during the final two years of
such retirant's participation, such
34 retirant shall not receive any retirement
benefit for any month for which
35 such retirant serves in such position or
office. Any retirant employed by
36 a participating employer in the Kansas
police and firemen's retirement
37 system shall not make contributions nor
receive additional credit under
38 such system for such service except as
provided by this section. Upon
39 request of the executive secretary of the
system, the secretary of revenue
40 shall provide such information as may be
needed by the executive sec-
41 retary to carry out the provisions of this
act.
42 (5) The provisions of
this section shall be effective on and after July
43 1, 1989, and shall apply only to members
who were appointed or em-
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37
1 ployed prior to July 1, 1989, and who
made an election pursuant to K.S.A.
2 74-4955a and amendments thereto; and
persons appointed or employed
3 on or after July 1, 1989.
4
Sec. 17. K.S.A. 1997 Supp. 74-4960 is hereby amended to
read as
5 follows: 74-4960. (1) If any active
contributing member becomes totally
6 and permanently disabled due to
service-connected causes as defined in
7 subsection (10) of K.S.A. 74-4952 and
amendments thereto, such mem-
8 ber shall be retired and the
following benefits shall become payable and
9 shall continue until the member's
death or until the member recovers
10 from the disability if: A report of the
event in a form acceptable to the
11 board is filed in the office of the
executive secretary of the board within
12 220 days after the date of the event or act
of duty causing such disability;
13 and an application for such benefit, in
such form and manner as the board
14 prescribes, is filed by the member or the
member's authorized represen-
15 tative in the office of the executive
secretary of the board within two years
16 of the date of disability:
17 (a) On and after July 1,
1993, the member shall receive a retirement
18 benefit equal to 50% of the member's final
average salary or, if the mem-
19 ber has no dependents, as defined in
subsection (1)(b), the retirement
20 benefit the member would have been entitled
to as provided under K.S.A.
21 74-4958 and amendments thereto had the
member retired, whichever is
22 greater. Such benefit shall accrue from the
day upon which the member
23 ceases to draw compensation.
24 (b) Each of the member's
children under the age of 18 years or each
25 of the member's children under the age of
23 years who is a full-time
26 student as provided in K.S.A. 74-49,117 and
amendments thereto shall
27 receive an annual benefit equal to 10% of
the member's final average
28 salary. Such benefit shall accrue from the
day upon which the member
29 ceases to draw compensation and shall end
on the last day of the month
30 in which each such child or children shall
attain the age of 18 years or
31 die, whichever occurs earlier or in which
such children attain the age of
32 23 years, if such child is a full-time
student as provided in K.S.A. 74-
33 49,117 and amendments thereto. Commencing
on the effective date of
34 this act, any child who was receiving
benefits pursuant to this section and
35 who had such benefits terminated by reason
of such child's marriage,
36 shall be entitled to once again receive
benefits pursuant to this section
37 subject to the limitations contained in
this section, except that such child
38 shall not be entitled to recover any
benefits not received after the ter-
39 mination of benefits by reason of such
child's marriage but before the
40 effective date of this act.
41 (c) In no case shall the
total of the benefits payable under paragraphs
42 (a) and (b) of this subsection (1) be in
excess of 75% of the member's
43 final average salary.
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1 (d) In the event a
member who is retired under subsection (1) dies
2 within two years after the date of
such retirement and no benefits are
3 payable under subsection (3) of
K.S.A. 74-4958 and amendments thereto,
4 then benefits may be payable under
subsection (1) of K.S.A. 74-4959 and
5 amendments thereto.
6 (e) In the event a
member who is retired under subsection (1) dies
7 more than two years after the date of
such retirement, and the proximate
8 cause of such death is the
service-connected cause from which the disa-
9 bility resulted and no benefits are
payable under subsection (3) of K.S.A.
10 74-4958 and amendments thereto, then
benefits may be payable under
11 subsection (1) of K.S.A. 74-4959 and
amendments thereto. The provisions
12 of this paragraph (e) of this subsection
(1) shall apply in all cases of such
13 members who die after June 30, 1978.
14 (f) In the event a
member who is retired under subsection (1) dies
15 after the date of such retirement, and no
benefits are payable under
16 paragraphs (d) and (e) of subsection (1),
nor under subsection (3) of
17 K.S.A. 74-4958 and amendments thereto, the
following benefits shall be
18 payable:
19 (i) To the member's
spouse, if lawfully wedded to the member at the
20 time of the member's death, a lump-sum
benefit equal to 50% of the
21 member's final average salary at the time
of the member's retirement.
22 (ii) To the member's
spouse, if lawfully wedded to the member at
23 the time of the member's death, an annual
benefit equal to 50% of the
24 member's retirement benefit payable in
monthly installments, to accrue
25 from the first day of the month following
the member's date of death and
26 ending on the last day of the month in
which the spouse dies. Com-
27 mencing on the effective date of this act,
any surviving spouse, who was
28 receiving benefits pursuant to this section
and who had such benefits
29 terminated by reason of such spouse's
remarriage, shall be entitled to
30 once again receive benefits pursuant to
this section, except that such
31 surviving spouse shall not be entitled to
recover any benefits not received
32 after the termination of benefits by reason
of such surviving spouse's
33 remarriage but before the effective date of
this act. If there is no surviving
34 spouse, or if after the death of the spouse
there remain one or more
35 children under the age of 18 years or one
or more children under the age
36 of 23 years who is a full-time student as
provided in K.S.A. 74-49,117 and
37 amendments thereto, the annual spouse's
benefit shall be payable in equal
38 shares to such children and each child's
share shall end on the last day of
39 the month in which such child attains the
age of 18 years or dies, which-
40 ever occurs earlier or in which such child
attains the age of 23 years, if
41 such child is a full-time student as
provided in K.S.A. 74-49,117 and
42 amendments thereto. Commencing on the
effective date of this act, any
43 child who was receiving benefits pursuant
to this section and who had
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39
1 such benefits terminated by reason of
such child's marriage, shall be en-
2 titled to once again receive benefits
pursuant to this section subject to
3 the limitations contained in this
section, except that such child shall not
4 be entitled to recover any benefits
not received after the termination of
5 benefits by reason of such child's
marriage but before the effective date
6 of this act.
7 The provisions of
paragraph (f) of subsection (1) shall apply in all cases
8 of such members who die after
December 1, 1984.
9 (2) (a) If
any active contributing member, prior to such member's
10 normal retirement, becomes totally and
permanently disabled for a period
11 of 180 days from causes not
service-connected, and not as the result of a
12 willfully negligent or intentional act of
the member, such member shall
13 be retired and the following benefit shall
become payable and shall con-
14 tinue until the member's death or until the
member recovers from such
15 disability, whichever occurs first, if a
report of the disability in a form
16 acceptable to the board is filed in the
office of the executive secretary of
17 the board within 220 days after the date of
the commencement of such
18 disability and if an application for such
benefit in such form and manner
19 as the board shall prescribe is filed in
the office of the executive secretary
20 of the board within two years of the date
of disability:
21 A retirement benefit equal to
2.5% of the member's final average salary
22 multiplied by the number of years of
credited service or the retirement
23 benefit the member would have been entitled
to as provided under K.S.A.
24 74-4958 and amendments thereto had the
member retired, whichever is
25 greater, multiplied by the number of years
of credited service except that
26 such retirement benefit shall be at least
equal to 25% of the member's
27 final average salary but shall not exceed
the amount of the retirement
28 benefit provided in paragraph (a) of
subsection (1). Such benefit shall not
29 become payable until satisfactory evidence
shall be presented to the board
30 that the member is and has been totally and
permanently disabled for a
31 period of 180 days, but benefits shall
accrue from the day upon which
32 the member ceases to draw compensation.
33 (b) In the event a
member who is retired under subsection (2) dies
34 after the date of such retirement, and no
benefits are payable under
35 subsection (3) of K.S.A. 74-4958 and
amendments thereto, the following
36 benefits shall be payable:
37 (i) To the member's
spouse, if lawfully wedded to the member at the
38 time of the member's death, a lump-sum
benefit equal to 50% of the
39 member's final average salary at the time
of the member's retirement.
40 (ii) To the member's
spouse, if lawfully wedded to the member at
41 the time of the member's death, an annual
benefit equal to 50% of the
42 member's retirement benefit payable in
monthly installments, to accrue
43 from the first day of the month following
the member's date of death and
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1 ending on the last day of the month
in which the spouse dies. Com-
2 mencing on the effective date of this
act, any surviving spouse, who was
3 receiving benefits pursuant to this
section and who had such benefits
4 terminated by reason of such spouse's
remarriage, shall be entitled to
5 once again receive benefits pursuant
to this section, except that such
6 surviving spouse shall not be
entitled to recover any benefits not received
7 after the termination of benefits by
reason of such surviving spouse's
8 remarriage but before the effective
date of this act. If there is no surviving
9 spouse, or if after the death of the
spouse there remain one or more
10 children under the age of 18 years or one
or more children under the age
11 of 23 years who are full-time students as
provided in K.S.A. 74-49,117
12 and amendments thereto, the annual spouse's
benefit shall be payable in
13 equal shares to such children and each
child's share shall end on the last
14 day of the month in which such child
attains the age of 18 years or dies,
15 whichever occurs earlier or in which such
child attains the age of 23 years,
16 if such child is a full-time student as
provided in K.S.A. 74-49,117 and
17 amendments thereto. Commencing on the
effective date of this act, any
18 child who was receiving benefits pursuant
to this section and who had
19 such benefits terminated by reason of such
child's marriage, shall be en-
20 titled to once again receive benefits
pursuant to this section subject to
21 the limitations contained in this section,
except that such child shall not
22 be entitled to recover any benefits not
received after the termination of
23 benefits by reason of such child's marriage
but before the effective date
24 of this act.
25 The provisions of paragraph
(b) of subsection (2) shall apply in all cases
26 of such members who die after July 1,
1989.
27 (3) Any member who was
employed for compensation by an em-
28 ployer other than the member's
participating employer and whose disa-
29 bility was incurred in the course of such
other employment shall not be
30 eligible for any of the benefits provided
in subsection (2).
31 (4) If a member becomes
totally and permanently disabled and no
32 benefits are payable under subsection (1)
or (2), the sum of the member's
33 accumulated contributions shall be paid to
the member.
34 (5) Any member receiving
benefits under this section shall submit to
35 medical examination, not
oftener more frequent than annually, by one
or
36 more physicians or any other practitioners
of the healing arts holding a
37 valid license issued by Kansas state board
of healing arts, as the board of
38 trustees may direct. If upon such medical
examination, the examiner's
39 report to the board states that the
retirant is physically able and capable
40 of resuming employment with the same or
a different participating em-
41 ployer from whose employment such
member retired, the disability ben-
42 efits shall terminate. A retirant who has
been receiving benefits under
43 the provisions of this section and who
returns to employment, as defined
S Sub. for HB 2149--Am. by SCW
41
1 in subsection (4) of K.S.A.
74-4952 and amendments thereto, of a partic-
2 ipating employer shall immediately
commence accruing service credit
3 which shall be added to that which
has been accrued by virtue of previous
4 service.
5 (6) Any retirant
who has been receiving benefits under the provisions
6 of this section for a period of five
years shall be deemed finally retired
7 and shall not be subject to further
medical examinations, except that if
8 the board of trustees shall have
reasonable grounds to question whether
9 the retirant remains totally and
permanently disabled, a further medical
10 examination or examinations may be
required.
11 (7) Refusal or neglect
to submit to examination as provided in sub-
12 section (5) shall be sufficient cause for
suspending or discontinuing ben-
13 efit payments under this section and if
such refusal or neglect shall con-
14 tinue for a period of one year, the
member's rights in and to all benefits
15 under this system may be revoked by the
board.
16 (8) Any retirement
benefits payable under the provisions of this sec-
17 tion shall be in lieu of normal retirement
benefits as provided in subsec-
18 tions (1) and (2) of K.S.A. 74-4958 and
amendments thereto.
19 (9) Each member shall
report to such member's participating em-
20 ployer any event or act of duty causing
disability within 200 days after
21 such event or act of duty. The member's
participating employer shall file
22 in the office of the executive secretary of
the board, in a form acceptable
23 to the board, a report of the event or act
of duty causing disability within
24 220 days after the event or act of
duty.
25 (10) In any case of any
event occurring prior to July 1, 1979, and after
26 June 30, 1998, for which a report of
the event was made by the partici-
27 pating employer to the director of workers'
compensation in accordance
28 with K.S.A. 44-557 and amendments thereto,
such report to the director
29 of workers' compensation shall satisfy the
requirement under subsection
30 (1) of this section to file a report of
such event, in a form acceptable to
31 the board within 220 days. No such report
to the director of workers'
32 compensation shall be deemed to satisfy
such requirement with respect
33 to events occurring on or after July 1,
1979, and prior to July 1, 1998.
34 (11) All payments due
under this section to a minor shall be made to
35 a legally appointed conservator of such
minor.
36 (12) The provisions of
this section shall apply only to members who
37 were appointed or employed prior to July 1,
1989, and who did not make
38 an election pursuant to K.S.A. 74-4955a and
amendments thereto.
39 (13) Any retirant who
has been receiving benefits under the provi-
40 sions of this section and who returns to
employment with the same or
41 different participating employer in the
system shall be deemed no longer
42 retired.
43 Sec. 18. K.S.A.
1997 Supp. 74-4960a is hereby amended to read as
S Sub. for HB 2149--Am. by SCW
42
1 follows: 74-4960a. (1) If any active
contributing member who is appointed
2 or employed on or after July 1, 1989,
or who makes an election pursuant
3 to K.S.A. 74-4955a and amendments
thereto to be covered by the pro-
4 visions of this act becomes disabled
as defined in subsection (2), such
5 member shall receive a monthly
benefit equal to 50% of the member's
6 final average salary at the time such
member was disabled payable in
7 monthly installments, accruing from
the first day upon which the member
8 ceases to draw compensation, if a
report of the disability in such form
9 and manner as the board shall
prescribe is filed in the office of the ex-
10 ecutive secretary of the board within 220
days after the date of the com-
11 mencement of such disability and if an
application for such benefit in
12 such form and manner as the board shall
prescribe is filed in the office
13 of the executive secretary of the board
within two years of the date of the
14 commencement of such disability.
15 (2) For the purposes of
this section, ``disabled'' means total inability
16 to perform permanently the duties of the
position of policeman or fire-
17 man.
18 (3) In the event a
member who is disabled and entitled to such ben-
19 efits as provided in subsection (1) dies
after the date of such disability,
20 and no benefits are payable under
subsection (3) of K.S.A. 74-4958 and
21 amendments thereto, the following benefits
shall be payable:
22 (i) To the member's
spouse, if lawfully wedded to the member at the
23 time of the member's death, a lump-sum
benefit equal to 50% of the
24 member's final average salary at the time
such member was disabled.
25 (ii) To the member's
spouse, if lawfully wedded to the member at
26 the time of the member's death, an annual
benefit equal to 50% of the
27 member's benefit payable in monthly
installments, to accrue from the
28 first day of the month following the
member's date of death and ending
29 on the last day of the month in which the
spouse dies. Commencing on
30 the effective date of this act, any
surviving spouse, who was receiving
31 benefits pursuant to this section and who
had such benefits terminated
32 by reason of such spouse's remarriage,
shall be entitled to once again
33 receive benefits pursuant to this section,
except that such surviving spouse
34 shall not be entitled to recover any
benefits not received after the ter-
35 mination of benefits by reason of such
surviving spouse's remarriage but
36 before the effective date of this act. If
there is no surviving spouse, or if
37 after the death of the spouse there remain
one or more children under
38 the age of 18 years or one or more children
under the age of 23 years
39 who is a full-time student as provided in
K.S.A. 74-49,117 and amend-
40 ments thereto, the annual spouse's benefit
shall be payable in equal shares
41 to such children and each child's share
shall end on the last day of the
42 month in which such child attains the age
of 18 years or dies, whichever
43 occurs earlier or in which such child
attains the age of 23 years, if such
S Sub. for HB 2149--Am. by SCW
43
1 child is a full-time student as
provided in K.S.A. 74-49,117 and amend-
2 ments thereto. Commencing on the
effective date of this act, any child
3 who was receiving benefits pursuant
to this section and who had such
4 benefits terminated by reason of such
child's marriage, shall be entitled
5 to once again receive benefits
pursuant to this section subject to the lim-
6 itations contained in this section,
except that such child shall not be en-
7 titled to recover any benefits not
received after the termination of benefits
8 by reason of such child's marriage
but before the effective date of this
9 act.
10 (4) Any member who was
employed for compensation by an em-
11 ployer other than the member's
participating employer and whose disa-
12 bility was incurred in the course of such
other employment shall not be
13 eligible for any of the benefits provided
in subsection (1) or (3).
14 (5) If a member becomes
totally and permanently disabled and no
15 benefits are payable under subsection (1),
the sum of the member's ac-
16 cumulated contributions shall be paid to
the member.
17 (6) Any member receiving
benefits under this section shall submit to
18 medical examination, not
oftener more frequent than annually, by one
or
19 more physicians or any other practitioners
of the healing arts holding a
20 valid license issued by Kansas state board
of healing arts, as the board of
21 trustees may direct. If upon such medical
examination, the examiner's
22 report to the board states that the
member is physically able and capable
23 of resuming employment with the same or
different participating em-
24 ployer from whose employment such
member was employed prior to such
25 member's disability, the
disability benefits shall terminate. A member
26 who has been receiving benefits under the
provisions of this section and
27 who returns to employment, as defined in
subsection (4) of K.S.A. 74-
28 4952 and amendments thereto, of a
participating employer shall imme-
29 diately commence accruing service credit
which shall be added to that
30 which has been accrued by virtue of
previous service.
31 (7) Any member who has
been receiving benefits under the provi-
32 sions of this section for a period of five
years shall be deemed permanent
33 and shall not be subject to further medical
examinations, except that if
34 the board of trustees shall have reasonable
grounds to question whether
35 the member remains totally and permanently
disabled, a further medical
36 examination or examinations may be
required.
37 (8) Refusal or neglect
to submit to examination as provided in sub-
38 section (6) shall be sufficient cause for
suspending or discontinuing ben-
39 efit payments under this section and if
such refusal or neglect shall con-
40 tinue for a period of one year, the
member's rights in and to all benefits
41 under this system may be revoked by the
board.
42 (9) In the event that a
member becomes disabled and is eligible for
43 benefits provided in this section, such
member shall be given participating
S Sub. for HB 2149--Am. by SCW
44
1 service credit for the entire period
of such disability.
2 (10) Any member
who is receiving benefits pursuant to this section
3 shall file annually a statement of
earnings for the previous year in such
4 form and manner as the board shall
prescribe. Any disability benefit paid
5 to a member entitled to such benefit
pursuant to this section shall be
6 reduced by the board in an amount
equal to a $1 reduction in such benefit
7 for every $2 of earnings of such
member which were earned during the
8 previous year while such member was
disabled. Such reduction shall ap-
9 ply only to a member's earnings which
exceed $10,000.
10 (11) Any benefits
provided pursuant to this section and any partici-
11 pating service credit given pursuant to
subsection (9) shall terminate upon
12 the earliest date such member is eligible
for retirement upon attainment
13 of the normal retirement date as provided
in K.S.A. 74-4964a and amend-
14 ments thereto.
15 (12) Any member who has
received benefits under the provisions of
16 this section for a period of five years or
more immediately preceding
17 retirement shall have such member's final
average salary adjusted upon
18 retirement by the actuarial salary
assumption rates in existence during
19 such period. Effective July 1, 1993, each
member's current annual rate
20 shall be adjusted upon retirement by 5% for
each year of disability after
21 July 1, 1993.
22 (13) All payments due
under this section to a minor shall be made to
23 a legally appointed conservator of such
minor.
24 (14) The provisions of
this section shall be effective on and after July
25 1, 1989 and shall apply only to members who
were appointed or employed
26 prior to July 1, 1989, and who made an
election pursuant to K.S.A. 74-
27 4955a and amendments thereto; and persons
appointed or employed on
28 or after July 1, 1989.
29 (15) Any retirant who
has been receiving benefits under the provi-
30 sions of this section and who returns to
employment with the same or
31 different participating employer in the
system shall be deemed no longer
32 retired.
33 Sec. 19. K.S.A.
1997 Supp. 74-4963 is hereby amended to read as
34 follows: 74-4963. (1) Upon termination of
employment prior to the com-
35 pletion of 20 years of credited service,
after 30 days after such termination
36 a member may withdraw such member's
accumulated contributions or
37 elect to leave such accumulated
contributions on deposit with the system.
38 If the member elects to leave the
accumulated contributions on deposit
39 with the system and if the member returns
to employment with the same
40 or another participating employer within
five years, such member shall
41 receive credit for such member's service
prior to such termination. If the
42 member does not elect to leave the
accumulated contributions on deposit
43 or if the member does not return to covered
employment within five
S Sub. for HB 2149--Am. by SCW
45
1 years, such member shall no longer be
a member of the system and the
2 sum of such member's accumulated
contributions then on deposit with
3 this system shall be paid to such
member after making application in a
4 form prescribed by the board and
after the system has a reasonable time
5 to process the application for
withdrawal. Upon proper notification by
6 the system, member contributions not
on deposit with the system shall
7 be paid to the member by the
participating employer.
8 (2) If, after
termination and withdrawal of accumulated contribu-
9 tions, a former member returns to
covered employment, except as oth-
10 erwise provided in subsection (1), the
former member shall become a
11 member of the system as provided in
subsection (2) of K.S.A. 74-4955
12 and amendments thereto. Any former member
returning to covered em-
13 ployment may, at the former member's
option, pay to the system within
14 31 days of the former member's return to
covered employment, the total
15 of the former member's withdrawn
accumulated contributions plus in-
16 terest at a rate specified by the board, in
which case the member shall
17 receive full credit for the member's
service prior to the member's ter-
18 mination. Members who do not elect to repay
within 31 days of return
19 to covered employment may elect to purchase
previously forfeited service
20 any time prior to retirement. Such purchase
shall be made by a lump-
21 sum payment equal to 1.75% of the member's
current annual salary for
22 each quarter of previously forfeited
participating service which the mem-
23 ber elects to repurchase. Upon receipt of
such payment by the system
24 the member shall receive full credit for
the number of previously forfeited
25 quarters of participating service which the
member has elected to repur-
26 chase. Any member who repurchases all of
the member's previously for-
27 feited participating service credit shall
also receive all of the member's
28 previously forfeited prior service
credit.
29 (3) Upon termination and
withdrawal of accumulated contributions,
30 any member whose employment was, up to the
member's employer's
31 entry date, covered by a pension system
established under the provisions
32 of K.S.A. 13-14a01 through 13-14a14, and
amendments thereto, or K.S.A.
33 14-10a01 through 14-10a15, and amendments
thereto, shall be entitled
34 to receive from the member's employer the
sum of the member's accu-
35 mulated contributions to the previous
pension system.
36 (4) If a member has
completed 20 years of credited service at date
37 of termination, the member shall be granted
automatically a vested re-
38 tirement benefit in the system, but any
time prior to the commencement
39 of retirement benefit payments and before
attaining age 55 the member
40 may withdraw the member's accumulated
contributions, whereupon the
41 member's membership in this system ceases
and no other amounts shall
42 be payable for the member's prior and
participating service credit. Eli-
43 gibility of such member, who has not
withdrawn the member's accumu-
S Sub. for HB 2149--Am. by SCW
46
1 lated contributions, for retirement
benefits and procedures for making
2 application for retirement benefits
shall be in accordance with K.S.A. 74-
3 4957 and amendments thereto, except
that in lieu of the three-month
4 notice of intention to retire being
made to the employer, such member
5 shall make application for retirement
in a form prescribed by the board
6 and retirement benefits shall accrue
from the first day of the month fol-
7 lowing receipt of such application.
The amount of the retirement benefit
8 shall be determined as provided in
K.S.A. 74-4958 and amendments
9 thereto.
10 (5) If a member, who has
a vested retirement benefit, again becomes
11 an employee of a participating employer,
the amount of the member's
12 vested retirement benefit shall remain in
effect, and any retirement ben-
13 efit such member subsequently accrues shall
be calculated separately
14 based on credited service after again
becoming an employee and shall be
15 added to that which had been vested by
virtue of previous service. Eli-
16 gibility of such member for retirement
benefits and procedures for mak-
17 ing application for retirement benefits
shall be in accordance with K.S.A.
18 74-4957 and amendments thereto.
19 (6) Any member of this
system who was previously a member of the
20 Kansas public employees retirement system
or the retirement system for
21 judges and who forfeited service credit
under either of those systems by
22 reason of termination of employment and
withdrawal of their contribu-
23 tions to that system, may elect to purchase
service credit for the previously
24 forfeited service credit by means of a
single lump-sum payment and such
25 service shall be recredited to that system.
The amount of the lump-sum
26 payment shall be determined by the actuary
using the member's then
27 current annual rate of compensation and the
actuarial assumptions and
28 tables then currently in use by that
retirement system.
29 (7) The provisions of
this section shall apply only to members who
30 were appointed or employed prior to July 1,
1989, and who did not make
31 an election pursuant to K.S.A. 74-4955a and
amendments thereto.
32 Sec. 20. K.S.A.
1997 Supp. 74-4963a is hereby amended to read as
33 follows: 74-4963a. (1) Upon termination of
employment prior to the com-
34 pletion of 15 years of credited service,
after 30 days after such termination
35 a member may withdraw such member's
accumulated contributions or
36 elect to leave such accumulated
contributions on deposit with the system.
37 If the member elects to leave the
accumulated contributions on deposit
38 with the system and if the member returns
to employment with the same
39 or another participating employer within
five years, such member shall
40 receive credit for such member's service
prior to such termination. If the
41 member does not elect to leave the
accumulated contributions on deposit
42 or if the member does not return to covered
employment within five
43 years, such member shall no longer be a
member of the system and the
S Sub. for HB 2149--Am. by SCW
47
1 sum of such member's accumulated
contributions then on deposit with
2 this system shall be paid to such
member after making application in a
3 form prescribed by the board and
after the system has a reasonable time
4 to process the application for
withdrawal. Upon proper notification by
5 the system, member contributions not
on deposit with the system shall
6 be paid to the member by the
participating employer.
7 (2) If, after
termination and withdrawal of accumulated contribu-
8 tions, a former member returns to
covered employment, except as oth-
9 erwise provided in subsection (1),
the former member shall become a
10 member of the system as provided in
subsection (2) of K.S.A. 74-4955
11 and amendments thereto. Any former member
returning to covered em-
12 ployment may, at the former member's
option, pay to the system within
13 31 days of the former member's return to
covered employment, the total
14 of the former member's withdrawn
accumulated contributions plus in-
15 terest at a rate specified by the board, in
which case the member shall
16 receive full credit for the member's
service prior to the member's ter-
17 mination. Members who do not elect to repay
within 31 days of return
18 to covered employment may elect to purchase
previously forfeited service
19 any time prior to retirement. Such purchase
shall be made by a lump-
20 sum payment equal to 1.75% of the member's
current annual salary for
21 each quarter of previously forfeited
participating service which the mem-
22 ber elects to repurchase. Upon receipt of
such payment by the system
23 the member shall receive full credit for
the number of previously forfeited
24 quarters of participating service which the
member has elected to repur-
25 chase. Any member who repurchases all of
the member's previously for-
26 feited participating service credit shall
also receive all of the member's
27 previously forfeited prior service
credit.
28 (3) Upon termination and
withdrawal of accumulated contributions,
29 any member whose employment was, up to the
member's employer's
30 entry date, covered by a pension system
established under the provisions
31 of K.S.A. 13-14a01 to 13-14a14, and
amendments thereto, or K.S.A. 14-
32 10a01 to 14-10a15, and amendments thereto,
shall be entitled to receive
33 from the member's employer the sum of the
member's accumulated con-
34 tributions to the previous pension
system.
35 (4) If a member has
completed 15 years of credited service at date
36 of termination, the member shall be granted
automatically a vested re-
37 tirement benefit in the system, but any
time prior to the commencement
38 of retirement benefit payments and before
attaining age 55 the member
39 may withdraw the member's accumulated
contributions, whereupon the
40 member's membership in this system ceases
and no other amounts shall
41 be payable for the member's prior and
participating service credit. Eli-
42 gibility of such member, who has not
withdrawn the member's accumu-
43 lated contributions, for retirement
benefits and procedures for making
S Sub. for HB 2149--Am. by SCW
48
1 application for retirement benefits
shall be in accordance with K.S.A. 74-
2 4957 and amendments thereto, except
that in lieu of the three-month
3 notice of intention to retire being
made to the employer, such member
4 shall make application for retirement
in a form prescribed by the board
5 and retirement benefits shall accrue
from the first day of the month fol-
6 lowing receipt of such application.
The amount of the retirement benefit
7 shall be determined as provided in
K.S.A. 74-4958 and amendments
8 thereto.
9 (5) If a member,
who has a vested retirement benefit, again becomes
10 an employee of a participating employer,
the amount of the member's
11 vested retirement benefit shall remain in
effect, and any retirement ben-
12 efit such member subsequently accrues shall
be calculated separately
13 based on credited service after again
becoming an employee and shall be
14 added to that which had been vested by
virtue of previous service. Eli-
15 gibility of such member for retirement
benefits and procedures for mak-
16 ing application for retirement benefits
shall be in accordance with K.S.A.
17 74-4957 and amendments thereto.
18 (6) Any member of this
system who was previously a member of the
19 Kansas public employees retirement system
or the retirement system for
20 judges and who forfeited service credit
under either of those systems by
21 reason of termination of employment and
withdrawal of their contribu-
22 tions to that system, may elect to purchase
service credit for the previously
23 forfeited service credit by means of a
single lump-sum payment and such
24 service shall be recredited to that system.
The amount of the lump-sum
25 payment shall be determined by the actuary
using the member's then
26 current annual rate of compensation and the
actuarial assumptions and
27 tables then currently in use by that
retirement system.
28 (7) The provisions of
this section shall be effective on and after July
29 1, 1989 and shall apply only to members who
were appointed or employed
30 prior to July 1, 1989, and who made an
election pursuant to K.S.A. 74-
31 4955a and amendments thereto; and persons
appointed or employed on
32 or after July 1, 1989.
33 Sec. 21. K.S.A.
1997 Supp. 74-4988 is hereby amended to read as
34 follows: 74-4988. (1) (a) Each
person who is a member of a retirement
35 system and who becomes a member of another
retirement system shall
36 receive credit under each such retirement
system for credited service
37 under the other retirement system for the
purpose of satisfying any re-
38 quirement for such person to complete
certain periods of service to be-
39 come eligible to receive a retirement
benefit or disability benefit or for
40 such person's beneficiaries to receive a
death benefit. The retirement
41 benefit which a person becomes eligible to
receive under a retirement
42 system shall be based only on credited
service under such retirement
43 system, except that the determination of
final average salary under such
S Sub. for HB 2149--Am. by SCW
49
1 retirement system shall include the
compensation received as a member
2 of each other retirement system if
such compensation is higher. Except
3 as provided in subsection
(1)(b), such retirement benefit shall become
4 payable upon the member submitting an
application to retire under each
5 system, except that a member who is
not eligible to retire under the
6 retirement system to which such
member is not currently making con-
7 tributions because such member does
not meet the age requirements of
8 the earliest retirement date of such
system may retire, upon meeting the
9 requirements for retirement, under
the provisions of the retirement sys-
10 tem which the member had been most recently
making contributions.
11 No further rights and benefits will accrue
under the retirement system
12 to which the member is not currently making
contributions after the date
13 the member retires from the system from
which the member had been
14 most recently making contributions and the
member will be retired and
15 benefits shall commence on the date that
the member would first have
16 attained retirement age from the system to
which the member is not
17 currently making contributions.
18 (b) The
requirement that a member shall submit an application
to
19 retire under each system
before becoming eligible to receive any
retire-
20 ment system benefits shall
not apply to any member who was active and
21 contributing to one
retirement system and who was inactive in
another
22 retirement system on July 1,
1995.
23 [(b) Notwithstanding the
provisions of subsection (a) relating to
24 the member's requirement of
retirement under each system before
25 being paid a retirement benefit under
one system, and not earlier
26 than six months prior to attaining
eligibility for retirement under a
27 retirement system in which a member
became an inactive member
28 prior to July 1, 1995, any member
participating in another retire-
29 ment system may apply to the board of
trustees for retirement under
30 the system in which the member is
inactive subject to the provisions
31 of this subsection. The board shall
adopt rules and regulations to
32 establish procedures and criteria to
determine whether an individ-
33 ual member has suffered significant
financial disadvantages due to
34 such provisions of subsection (a). If
upon a determination that such
35 member has suffered significant
financial disadvantages due to such
36 provisions of subsection (a), then
the board may grant the individ-
37 ual member's application for
retirement under the system in which
38 the member is inactive and the
individual member may elect to con-
39 tinue working and accruing service
credit under another system
40 without having to retire from such
system. In such a case, such
41 provisions of subsection (a) shall
not apply after the board has cer-
42 tified its finding that such
individual member would suffer signifi-
43 cant financial disadvantages if
required to retire under both sys-
S Sub. for HB 2149--Am. by SCW
50
1 tems as provided in subsection
(a).]
2 (2) Any member who
is not otherwise eligible for service credit as
3 provided for in subsection (1)(a) of
K.S.A. 74-4913 or subsection (1)(a)
4 of K.S.A. 74-4936 and amendments
thereto, may be granted credit for
5 the service upon the attainment of 38
quarters of participating service in
6 any retirement system as defined in
subsection (3)(b) or upon retirement.
7 (3) As used in
this section:
8 (a) ``Member''
means a person who has attained membership in a
9 retirement system, who has not
retired under such retirement system and
10 who has not withdrawn such person's
accumulated contributions for such
11 retirement system; and
12 (b) ``retirement
system'' means the Kansas public employees retire-
13 ment system, the Kansas police and
firemen's retirement system and the
14 retirement system for judges.
15 Sec. 22. K.S.A.
1997 Supp. 74-4992 is hereby amended to read as
16 follows: 74-4992. (a) Any such member of
the legislature or former mem-
17 ber of the legislature as described in
K.S.A. 74-4991 and amendments
18 thereto shall become a member on entry date
or upon filing with the
19 board an election to become or not to
become a member of the system.
20 In the event that any such member of the
legislature or former member
21 of the legislature fails to file the
election to become a member of the
22 retirement system, it shall be presumed
that such member of the legis-
23 lature or former member of the legislature
has elected not to become a
24 member. The election to participate shall
become effective immediately
25 upon making such election, if such
election is made within 14 days of
26 taking the oath of office or,
otherwise, on the first day of the first payroll
27 period of the first quarter following
receipt of the election in the office
28 of the retirement system.
29 (b) Any member of the
legislature who had attained membership in
30 the Kansas public employees retirement
system prior to taking the oath
31 of office as a member of the legislature
may elect not to participate in
32 the Kansas public employees retirement
system for the purpose of service
33 as a member of the legislature. Any member
of the legislature who is a
34 member of the retirement system on the
effective date of this act and
35 was a member of the retirement system at
the time of taking the oath of
36 office may elect not to participate in the
retirement system for service as
37 a member of the legislature if such
election is filed within the offices of
38 the system. Upon filing such election such
member of the legislature shall
39 receive a refund of all contributions made
to the retirement system by
40 filing a withdrawal application with the
system.
41 (c) Any member of the
legislature who elected not to participate in
42 the retirement system, and who is not a
contributing member with any
43 other participating employer, may purchase
such participating service by
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51
1 making a single lump-sum payment in
an amount determined by the
2 actuary using the then current rate
of compensation and the actuarial
3 assumptions and tables currently in
use by the system.
4 (d) Except as
otherwise provided in this section, any member of the
5 retirement system may purchase
participating service credit for employ-
6 ment service as described in this
section, if first commenced prior to
7 January 1, 1996, by electing to
effect such purchase by means of having
8 employee contributions as provided in
K.S.A. 74-4919 and amendments
9 thereto deducted from such member's
compensation at a percentage rate
10 equal to two times or three times the
employee's rate of contribution as
11 provided in K.S.A. 74-4919 and amendments
thereto for such periods of
12 service in lieu of a lump-sum amount as
provided in this section. Such
13 deductions shall commence at the beginning
of the quarter following such
14 election and shall remain in effect until
all quarters of such service have
15 been purchased. Any person may make any
such purchase as described
16 in this section, if first commenced in
calendar year 1996 or thereafter, at
17 an additional rate of contribution, in
addition to the employee's rate of
18 contribution as provided in K.S.A. 74-4919
and amendments thereto,
19 based upon the member's attained age at the
time of purchase and using
20 actuarial assumptions and tables in use by
the retirement system at such
21 time of purchase, for such periods of
service, in lieu of a lump-sum
22 amount as provided in this section. Such
additional rate of contribution
23 shall commence at the beginning of the
quarter following such election
24 and shall remain in effect until all
quarters of such service have been
25 purchased.
26 New Sec. 23. The
retirement system for judges is a division of the
27 Kansas public employees retirement system
created by K.S.A. 74-4903
28 and amendments thereto and is subject to
the provisions of K.S.A. 74-
29 4901 et seq. and amendments
thereto.
30 New Sec. 24. The
provisions of K.S.A. 74-4999 et seq. and amend-
31 ments thereto shall apply to any member of
the Kansas public employees
32 retirement system who was a court reporter
for a magistrate judge prior
33 to July 1, 1975, and who is a full-time
court reporter on the effective date
34 of this act.
35 New Sec. 25. (a)
The retirement benefit, pension or annuity pay-
36 ments accruing after June 30, 1998, to each
retirant and each local school
37 annuitant shall be increased by an amount
equal to 2.0% of the retirement
38 benefit, pension or annuity payment in
effect on July 1, 1998, from the
39 retirant's retirement system and shall be
paid by such retirement system
40 to the retirant and the local school
annuitant during such period.
41 (b) As used in this
section:
42 (1) ``Retirant'' means
(A) any person who is a member of a retirement
43 system and who retired prior to July 1,
1993, (B) any person who is a
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52
1 special member of a retirement system
and who retired prior to July 1,
2 1993, and (C) any person who is a
joint annuitant or beneficiary of any
3 member described in clause (A) or any
special member described in
4 clause (B).
5 (2) ``Retirement
system'' means the Kansas public employees retire-
6 ment system, the Kansas police and
firemen's retirement system, the state
7 school retirement system and the
retirement system for judges.
8 (3) ``Local school
annuitant'' means (A) any person who is an annui-
9 tant with 10 or more years of
service, who is receiving an annuity, whose
10 annuity is not included, in whole or in
part, in payments made to such
11 school district under K.S.A. 72-5512b and
amendments thereto, and who
12 is not a member of a group I or of group II
as defined in K.S.A. 72-5518
13 and amendments thereto, and (B) any person
who is receiving an annuity
14 and who retired prior to September 1,
1981.
15 New Sec. 26.
16
KANSAS PUBLIC EMPLOYEES RETIREMENT SYSTEM
17 (a) There is
appropriated for the above agency from the state general
18 fund for the fiscal year ending June 30,
1999, the following:
| 19 |
Actuarial funding -- 2% postretirement
benefit increase |
$18,895,173 |
20 Provided, That all expenditures from
the actuarial funding -- 2% postretirement benefit
21 increase account shall be to finance the
amount required to fund the actuarial liability of
22 the state obligation for the one-time
postretirement benefit increase for persons who retired
23 prior to July 1, 1993, and for whom the
state paid employer contributions (1) under the
24 Kansas public employees retirement system
for those persons who were eligible for assis-
25 tance from the state board of regents in
the purchase of annuities as provided in K.S.A. 74-
26 4925, and amendments thereto, (2) under the
Kansas public employees retirement system
27 for those persons who were employed by
eligible employers described by K.S.A. 74-4931,
28 and amendments thereto, and for whom
employer contributions were paid as provided by
29 K.S.A. 74-4939, and amendments thereto, (3)
under the Kansas police and firemen's re-
30 tirement system as provided by K.S.A.
74-4951 et seq., and amendments thereto, or (4)
31 under the retirement system for judges as
provided by K.S.A. 20-2601 et seq., and amend-
32 ments thereto.
33 [Sec. 27. K.S.A.
74-4924 is hereby amended to read as follows:
34 74-4924. (1) Any
person who shall knowingly make any false state-
35 ment, or who shall falsify or permit
to be falsified any record nec-
36 essary for carrying out the intent of
this act for the purpose of com-
37 mitting fraud, shall be
guilty of a misdemeanor, and upon conviction
38 shall be punished by a fine not
exceeding five hundred dollars ($500) or
39 by imprisonment for not exceeding
one (1) year subject to the provisions
40 of K.S.A. 21-3904 and amendments
thereto.
41
[(2) Should any error in any records or
in any calculation of the
42 Kansas public employees retirement
system result in any member
43 or beneficiary receiving more or less
than he would have been en-
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53
1 titled to receive had the
records or calculations been correct, the
2 board shall correct such error,
and, as far as practicable, make
3 future payments in such a
manner that the actuarial equivalent of
4 the benefit to which such
member or beneficiary was entitled shall
5 be paid, and to
this end and may recover any
overpayments:
Pro-
6
vided,. In the event a member
has withdrawn, all or part of, his
such
7 member's accumulated
contributions in a manner not in compliance
8 with the provisions of this act
or the regulations of the system the
9 amount of such withdrawal, plus
interest at a rate specified by the
10 board, shall be deducted from any
amounts, including group insur-
11 ance benefits, which shall become due
the member or his such mem-
12 ber's beneficiaries under the
provisions of this act.]
13
Sec. 27
[28]. K.S.A. 20-2601a, 20-2606[,
74-4924] and 74-4953 and
14 K.S.A. 1997 Supp. 74-4902, 74-4907,
74-4911, 74-4913, 74-4914, 74-
15 4917, 74-4920, 74-4921, 74-4937, 74-4952,
74-4956, 74-4957, 74-4957a,
16 74-4960, 74-4960a, 74-4963, 74-4963a,
74-4988 and 74-4992 are hereby
17 repealed.
18
Sec. 28 [29]. This
act shall take effect and be in force from and after
19 its publication in the statute book.
20