Session of 1998
                   
HOUSE BILL No. 2940
         
By Representatives Nichols, Crow, Dillon, Findley, Flaharty, Flora, Gar-
                ner, Grant, Henderson, Johnston, Kirk, Klein, Kuether, E.Peterson,
                Phelps, Sawyer, Sharp, Showalter, Shriver, Spangler, Storm, Thi-
                mesch, Toelkes and Wells
               
2-13
         
12             AN ACT concerning retirement and pensions; relating to the Kansas pub-
13             lic employees retirement system and systems thereunder; providing a
14             permanent cost-of-living increase; relating to employee and employer
15             contribution rates; amending K.S.A. 20-2603, 20-2605 and 74-4919
16             and K.S.A. 1997 Supp. 74-4920, 74-4939, 74-4965 and 74-4967 and
17             repealing the existing sections.
18            
19       Be it enacted by the Legislature of the State of Kansas:
20           New Section 1. (a) The retirement benefit, pension or annuity pay-
21       ments accruing after June 30, 1998, to each retirant and each local school
22       annuitant, shall be increased by an annual cost-of-living increase in an
23       amount equal to 2/3 of the percentage increase in the consumer price
24       index for all urban consumers published by the United States department
25       of labor for the preceding calendar year, except that such percentage
26       increase shall not exceed 3.0% in any given year, multiplied by the re-
27       tirement benefit, pension or annuity payment in effect on July 1, 1998,
28       and each year thereafter, from the retirant's retirement system and shall
29       be paid by such retirement system to the retirant or to the local school
30       annuitant during such period.
31           (b) As used in this section:
32           (1) ``Retirant'' means (A) any person who is a member of a retirement
33       system and who retires, (B) any person who is a special member of a
34       retirement system and who retires, (C) any person who is a joint annuitant
35       or beneficiary of any member described in clause (A) or any special mem-
36       ber described in clause (B), and (D) any insured disability benefit recip-
37       ient.
38           (2) ``Retirement system'' means the Kansas public employees retire-
39       ment system, the Kansas police and firemen's retirement system, the state
40       school retirement system and the retirement system for judges.
41           (3) ``Local school annuitant'' means (A) any person who is an annui-
42       tant with 10 or more years of service, who is receiving an annuity, whose
43       annuity is not included, in whole or in part, in payments made to such

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  1       school district under K.S.A. 72-5512b and amendments thereto and who
  2       is not a member of a group I or of group II as defined in K.S.A. 72-5518
  3       and amendments thereto, and (B) any person who is receiving an annuity
  4       and who retired prior to September 1, 1981.
  5           (c) ``Insured disability benefit recipient'' means any person receiving
  6       an insured disability benefit under K.S.A. 74-4927 and amendments
  7       thereto.
  8           Sec. 2. K.S.A. 20-2603 is hereby amended to read as follows: 20-
  9       2603. (a) Except as otherwise provided in this section, each judge shall
10       contribute 6% of the judge's salary for each payroll period to the fund,
11       except that commencing the first payroll period coinciding with or follow-
12       ing the effective date of this act, such contribution rate shall increase by
13       an amount equal to .375% and shall increase by an amount equal to .375%
14       each year thereafter for the subsequent three years for a maximum mem-
15       ber contribution rate of 7.5%. Commencing with the first payroll period
16       after 20 years of service by the judge and after the judge reaches 65 years
17       of age, and for each payroll period thereafter, such judge shall contribute
18       2% of such judge's salary to the fund, except that commencing the first
19       payroll period coinciding with or following the effective date of this act,
20       such contribution rate shall increase by an amount equal to .125% and
21       shall increase by an amount equal to .125% each year thereafter for the
22       subsequent three years for a maximum member contribution rate of 2.5%.
23       Commencing with the first payroll period after the judge has enough
24       years of service to entitle such judge upon retirement to the maximum
25       monthly retirement benefit of 70% of the final average salary of such
26       judge provided under the provisions of K.S.A. 20-2610 and amendments
27       thereto, and for each payroll period thereafter, each judge shall contribute
28       4% of such judge's salary to the fund or, commencing on and after the
29       effective date of this act, each such judge shall contribute 2% of such
30       judge's salary to the fund, except that commencing the first payroll period
31       coinciding with or following the effective date of this act, such contribu-
32       tion rate shall increase by an amount equal to .125% and shall increase
33       by an amount equal to .125% each year thereafter for the subsequent
34       three years for a maximum member contribution rate of 2.5%.
35           (b) The director of accounts and reports shall deduct the amount
36       each judge is to contribute to the fund on the payroll of each judge for
37       each payroll period showing the amount deducted and its credit to the
38       fund. Such deductions shall be remitted quarterly, or as the board may
39       otherwise provide, to the executive secretary of the Kansas public em-
40       ployees retirement system for credit to the fund to the credit of the
41       judge's individual account therein.
42           (c) Interest on each judge's accumulated contributions at the rate
43       determined under subsection (a) of K.S.A. 74-4922 and amendments

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  1       thereto shall be added annually to the judge's individual account in the
  2       fund.
  3           (d) No member who has retired under the retirement system for
  4       judges shall make contributions to that system or receive any service
  5       credit under that system for any service after the date of such retirement.
  6           (e) (1) Each participating employer, pursuant to the provisions of
  7       section 414(h)(2) of the United States internal revenue code, shall pick
  8       up and pay the contributions which would otherwise be payable by mem-
  9       bers as prescribed in subsection (a). The contributions so picked up shall
10       be treated as employer contributions for purposes of determining the
11       amounts of federal income taxes to withhold from the member's com-
12       pensation.
13           (2) Member contributions picked up by the employer shall be paid
14       from the same source of funds used for the payment of compensation to
15       a member. A deduction shall be made from each member's compensation
16       equal to the amount of the member's contributions picked up by the
17       employer, provided that such deduction shall not reduce the member's
18       compensation for purposes of computing benefits under the retirement
19       system for judges.
20           (3) Member contributions picked up by the employer shall be re-
21       mitted quarterly, or as the board may otherwise provide, to the executive
22       secretary for credit to the Kansas public employees retirement fund. Such
23       contributions shall be credited to a separate account within the member's
24       individual account so that amounts contributed by the member may be
25       distinguished from the member contributions picked up by the employer.
26       Interest shall be added annually to members' individual accounts.
27           Sec. 3. K.S.A. 20-2605 is hereby amended to read as follows: 20-
28       2605. (a) The board shall select and employ or retain a qualified actuary
29       who shall serve at its pleasure as its technical advisor on matters regarding
30       operation of the retirement system for judges. The actuary shall:
31           (1) As soon after the effective date as practicable and once every three
32       years thereafter, make a general investigation of the actuarial experience
33       under the retirement system for judges including mortality, retirement,
34       employment turnover and interest, and recommend actuarial tables for
35       use in valuations and in calculating actuarial equivalent values based on
36       such investigation; make a valuation of the liabilities and reserves of the
37       retirement system for judges, and a determination of the contributions
38       required by the retirement system for judges to discharge its liabilities
39       and recommend to the board rates of employer contributions required
40       to establish and maintain the retirement system for judges on an actuarial
41       reserve basis.
42           (2) Perform such other duties as may be assigned by the board.
43           (b) Upon the basis of the actuarial valuation and appraisal and upon

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  1       the recommendation of the actuary, the board shall certify, on or before
  2       July 15 of each year, to the division of budget an actuarially determined
  3       estimate of the rate of contribution which will be required, together with
  4       all judges' contributions and other assets of the retirement system for
  5       judges to pay all liabilities which shall exist or accrue under the retirement
  6       system for judges, including amortization of the unfunded accrued lia-
  7       bility over a period of 40 years commencing on July 1, 1993. The rate of
  8       contribution for the state determined under this section shall not include
  9       the costs of administration of the system. The rate of contribution for the
10       state determined under this section shall in no event be less than the
11       judge's member contribution rate as provided in K.S.A. 20-2603 and
12       amendments thereto.
13           (c) The division of the budget and the governor shall include in the
14       budget and in the budget request for appropriations for personal services
15       the sum required to satisfy the state's obligation under the retirement
16       system for judges as certified by the board and shall present the same to
17       the legislature for allowance and appropriation.
18           Sec. 4. K.S.A. 74-4919 is hereby amended to read as follows: 74-
19       4919. (1) Each participating employer, beginning with the first payroll for
20       services performed after the entry date, shall deduct from the compen-
21       sation of each member 4% of such member's compensation as employee
22       contributions, except that for the first payroll period coinciding with or
23       following the effective date of this act, such contribution rate shall increase
24       by an amount equal to .25% and shall increase by an amount equal to
25       .25% each year thereafter for the subsequent three years for a maximum
26       member contribution rate of 5%. Such deductions shall be remitted quar-
27       terly, or as the board may otherwise provide, to the executive secretary
28       for deposit in the Kansas public employees retirement fund. Such de-
29       ductions shall be credited to the members' individual accounts and in-
30       terest shall be added annually to such accounts.
31           (2) (a) Each participating employer, pursuant to the provisions of
32       section 414(h)(2) of the United States internal revenue code, shall pick
33       up and pay the contributions which would otherwise be payable by mem-
34       bers as prescribed in subsection (1) commencing with the third quarter
35       of 1984. The contributions so picked up shall be treated as employer
36       contributions for purposes of determining the amounts of federal income
37       taxes to withhold from the member's compensation.
38           (b) Member contributions picked up by the employer shall be paid
39       from the same source of funds used for the payment of compensation to
40       a member. A deduction shall be made from each member's compensation
41       equal to the amount of the member's contributions picked up by the
42       employer, provided that such deduction shall not reduce the member's
43       compensation for purposes of computing benefits under the system.

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  1           (c) Member contributions picked up by the employer shall be remit-
  2       ted quarterly, or as the board may otherwise provide, to the executive
  3       secretary for credit to the Kansas public employees retirement fund. Such
  4       contributions shall be credited to a separate account within the member's
  5       individual account so that amounts contributed by the member com-
  6       mencing with the third quarter of 1984 may be distinguished from the
  7       member contributions picked up by the employer. Interest shall be added
  8       annually to members' individual accounts.
  9           Sec. 5. K.S.A. 1997 Supp. 74-4920 is hereby amended to read as
10       follows: 74-4920. (1) Upon the basis of each annual actuarial valuation
11       and appraisal as provided for in subsection (3)(a) of K.S.A. 74-4908 and
12       amendments thereto, the board shall certify, on or before July 15 of each
13       year, to the division of the budget in the case of the state and to the agent
14       for each other participating employer an actuarially determined estimate
15       of the rate of contribution which will be required, together with all ac-
16       cumulated contributions and other assets of the system, to be paid by
17       each such participating employer to pay all liabilities which shall exist or
18       accrue under the system, including amortization of the actuarial accrued
19       liability over a period of 40 years commencing on July 1, 1993, and the
20       actuarial accrued liability for members of the faculty and other persons
21       who are employed by the state board of regents or by educational insti-
22       tutions under its management assisted by the state board of regents in
23       the purchase of retirement annuities as provided in K.S.A. 74-4925 and
24       amendments thereto, as provided in this section. The actuarial accrued
25       liability for all participating employers other than the state board of re-
26       gents relating to members of the faculty and other persons described in
27       this section, shall be amortized by annual payments that increase 4% for
28       each year remaining in the amortization period. For all participating em-
29       ployers other than the state board of regents relating to members of the
30       faculty and other persons described in this section, the projected unit
31       credit actuarial cost method shall be used in annual actuarial valuations,
32       commencing with the 1993 valuation, to determine the employer contri-
33       bution rates that shall be certified by the board. The actuarial accrued
34       liability for members of the faculty and other persons described in this
35       subsection assisted by the state board of regents in the purchase of re-
36       tirement annuities as provided in K.S.A. 74-4925 and amendments
37       thereto shall be amortized by annual level payments over a period of 10
38       years commencing July 1, 1993. Such certified rate of contribution shall
39       be based on the standards set forth in subsection (3)(a) of K.S.A. 74-4908
40       and amendments thereto and shall not be based on any other purpose
41       outside of the needs of the system.
42           (2) The division of the budget and the governor shall include in the
43       budget and in the budget request for appropriations for personal services

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  1       the sum required to satisfy the state's obligation under this act as certified
  2       by the board and shall present the same to the legislature for allowance
  3       and appropriation.
  4           (3) Each other participating employer shall appropriate and pay to
  5       the system a sum sufficient to satisfy the obligation under this act as
  6       certified by the board.
  7           (4) Each participating employer is hereby authorized to pay the em-
  8       ployer's contribution from the same fund that the compensation for which
  9       such contribution is made is paid from or from any other funds available
10       to it for such purpose. Each political subdivision, other than an instru-
11       mentality of the state, which is by law authorized to levy taxes for other
12       purposes, may levy annually at the time of its levy of taxes, a tax which
13       may be in addition to all other taxes authorized by law for the purpose of
14       making its contributions under this act and, in the case of cities and coun-
15       ties, to pay a portion of the principal and interest on bonds issued under
16       the authority of K.S.A. 12-1774 and amendments thereto by cities located
17       in the county, which tax, together with any other fund available, shall be
18       sufficient to enable it to make such contribution. In lieu of levying the
19       tax authorized in this subsection, any taxing subdivision may pay such
20       costs from any employee benefits contribution fund established pursuant
21       to K.S.A. 12-16,102 and amendments thereto. Each participating em-
22       ployer which is not by law authorized to levy taxes as described above,
23       but which prepares a budget for its expenses for the ensuing year and
24       presents the same to a governing body which is authorized by law to levy
25       taxes as described above, may include in its budget an amount sufficient
26       to make its contributions under this act which may be in addition to all
27       other taxes authorized by law. Such governing body to which the budget
28       is submitted for approval, may levy a tax sufficient to allow the partici-
29       pating employer to make its contributions under this act, which tax, to-
30       gether with any other fund available, shall be sufficient to enable the
31       participating employer to make the contributions required by this act.
32           (5) The rate of contribution certified to a participating employer as
33       provided in this section shall apply during the fiscal year of the partici-
34       pating employer which begins in the second calendar year following the
35       year of the actuarial valuation.   For the fiscal year commencing in calendar
36       year 1993, the employer rate of contribution for the state of Kansas and
37       for participating employers under K.S.A. 74-4931 and amendments
38       thereto shall be 3.1% of the amount of compensation upon which mem-
39       bers contribute during the period. For the fiscal year commencing in
40       calendar year 1994, the employer rate of contribution for the state of
41       Kansas and for participating employers under K.S.A. 74-4931 and amend-
42       ments thereto shall be 3.2% of the amount of compensation upon which
43       members contribute during the period. For the fiscal year commencing

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  1       in calendar year 1994, the employer rate of contribution for participating
  2       employers other than the state of Kansas shall be 2.2% of the amount of
  3       compensation upon which members contribute during the period. Except
  4       as specifically provided in this section, for the fiscal year commencing in
  5       calendar year 1995, the rate of contribution certified to a participating
  6       employer shall in no event exceed such participating employer's contri-
  7       bution rate for the immediately preceding fiscal year by more than 0.1%
  8       of the amount of compensation upon which members contribute during
  9       the period. Except as specifically provided in this section, for fiscal years
10       commencing in calendar year 1996 and in each subsequent calendar year,
11       the rate of contribution certified to the state of Kansas shall in no event
12       exceed the state's contribution rate for the immediately preceding fiscal
13       year by more than 0.2% of the amount of compensation upon which
14       members contribute during the period. Except as specifically provided in
15       this section, for fiscal years commencing in calendar year 1997 and in
16       each subsequent calendar year, the rate of contribution certified to par-
17       ticipating employers other than the state of Kansas shall in no event ex-
18       ceed such participating employer's contribution rate for the immediately
19       preceding fiscal year by more than 0.15% of the amount of compensation
20       upon which members contribute during the period. For the fiscal year
21       commencing in calendar year 1998, the employer rate of contribution for
22       the state of Kansas and for participating employers under K.S.A. 74-4931
23       and amendments thereto and for the fiscal year commencing in calendar
24       year 1999, the employer rate of contribution for participating employers
25       other than the state of Kansas shall be 4.25% of the amount of compen-
26       sation upon which members contribute during the period and such rate
27       of contribution shall increase by an amount equal to .25% each year for
28       the ensuing three fiscal years, except that the increase in the rate of con-
29       tribution attributable to this provision shall be 1.0%. There shall be an
30       employer rate of contribution certified to   (tri-stars)e state of Kansas and partic-
31       ipating employers under K.S.A. 74-4931 and amendments thereto. There
32       shall be a separate employer rate of contribution certified to all other
33       participating employers other than the state of Kansas. The rate of con-
34       tribution for employers determined under this section shall in no event be
35       less than the employee contribution rate as provided in K.S.A. 74-4919
36       and amendments thereto.
37           (6) The actuarial cost of any legislation enacted in the 1994 session
38       of the Kansas legislature will be included in the June 30, 1994, actuarial
39       valuation in determining contribution rates for participating employers.
40           (7) The actuarial cost of any postretirement benefit adjustment en-
41       acted in the 1998 session of the Kansas legislature shall be amortized over
42       15 years.
43           (8) The actuarial cost of any legislation enacted in the 1998 session

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  1       of the Kansas legislature and any session thereafter will be included in
  2       the next June 30, actuarial valuation in determining contribution rates for
  3       participating employers and shall be in addition to any increase in the
  4       employer rate of contribution in subsection (5) as provided by this act.
  5           (9) The board with the advice of the actuary may fix the contribution
  6       rates for participating employers joining the system after one year from
  7       the first entry date or for employers who exercise the option contained
  8       in K.S.A. 74-4912 and amendments thereto at rates different from the
  9       rate fixed for employers joining within one year of the first entry date.
10             (8) (10) Employer contributions shall in no way be limited by any
11       other act which now or in the future establishes or limits the compen-
12       sation of any member.
13             (9) (11) Each participating employer shall remit quarterly, or as the
14       board may otherwise provide, all employee deductions and required em-
15       ployer contributions to the executive secretary for credit to the Kansas
16       public employees retirement fund within 20 days after the end of the
17       period covered by the remittance or within 25 days after forms or written
18       instructions from the system were mailed by the system to such employer,
19       whichever is later. Remittances of such deductions and contributions re-
20       ceived after such date are delinquent. Delinquent payments due under
21       this subsection shall be subject to interest at the rate established for in-
22       terest on judgments under subsection (a) of K.S.A. 16-204 and amend-
23       ments thereto. At the request of the board, delinquent payments which
24       are due or interest owed on such payments, or both, may be deducted
25       from any other moneys payable to such employer by any department or
26       agency of the state.
27           Sec. 6. K.S.A. 1997 Supp. 74-4939 is hereby amended to read as
28       follows: 74-4939. (1) Except as otherwise provided in this section, the
29       provisions of K.S.A. 74-4919 and 74-4920, and amendments thereto, shall
30       apply to employee and employer contributions and obligations.
31           (2) The employer contribution rate for participating employers who
32       are eligible employers as specified in   subsections (1), (2) and (3) of K.S.A.
33       74-4931 and amendments thereto shall be as certified by the board. Par-
34       ticipating employers shall certify to the state board of education before
35       September 15 of each year the anticipated total compensation to be paid
36       during the next fiscal year to employees who are or are to become mem-
37       bers.   The state board of education shall transmit the information neces-
38       sary to the division of the budget and the governor who shall include in
39       the budget and budget document each year thereafter provisions for the
40       transfer from the state general fund of sufficient sums to satisfy the par-
41       ticipating employer's obligation under this act. The director of accounts
42       and reports shall make a transfer therefor to the system quarterly, at the
43       same time such employee contributions are remitted by such participating

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  1       employers. Such transfer from the general fund of sufficient sums to
  2       satisfy the participating employer's obligation shall not include any ad-
  3       justments for individual employee's service in prior periods. The em-
  4       ployer's obligation for such adjustments shall be paid by the participating
  5       employer. Transfers required by this subsection shall be provided for
  6       annually by act of the legislature.
  7           (3) Participating employers who are eligible employers as specified
  8       in subsection (4) of K.S.A. 74-4931 and amendments thereto shall pay to
  9       the system employer contributions at a rate of contribution as certified
10       by the board.
11           (4) Upon the effective date of this act, the transfers for the employer's
12       obligation pursuant to subsection (2) for the quarter commencing on Jan-
13       uary 1, 1987, shall be made on July 1, 1987, together with interest thereon
14       at the rate of 6.72% per annum from the date the payment would have
15       been made as provided in this section immediately prior to this amend-
16       ment until the date paid.
17           Sec. 7. K.S.A. 1997 Supp. 74-4965 is hereby amended to read as
18       follows: 74-4965. (1) Except as otherwise provided in this section, each
19       participating employer shall, beginning with the first payroll period for
20       services performed after the entry date, deduct from the compensation
21       of each member 7% of such member's compensation as employee con-
22       tributions, except that in the case of a member whose employment is
23       covered by social security and the member is a member of the class cer-
24       tified in the case of Brazelton v. Kansas public employees retirement
25       system, 227 K. 443, 607 P.2d 510 (1980), the deduction from such mem-
26       ber's compensation shall be reduced by the amount of such member's
27       contributions to social security. Commencing the first payroll period co-
28       inciding with or following the effective date of this act, such contribution
29       rate shall increase by an amount equal to .4375% and shall increase by
30       an amount equal to .4375% each year thereafter for the subsequent three
31       years for a maximum member contribution rate of 8.75%.
32           (2) For any member other than a member who is a member of the
33       class certified in the case of Brazelton v. Kansas public employees retire-
34       ment system, 227 K. 443, 607 P.2d 510 (1980), no employee contributions
35       shall be reduced because of contributions to social security.
36           (3) All such deductions shall be remitted quarterly, or as the board
37       may otherwise provide, to the executive secretary for credit to the Kansas
38       public employees retirement fund and shall be credited to the members'
39       individual accounts. Interest on each member's accumulated contribu-
40       tions at the rate determined under subsection (a) of K.S.A. 74-4922 and
41       amendments thereto shall be added annually to the member's individual
42       account.
43           (4) For all payroll periods commencing on or after the effective date

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  1       of this act, each participating employer shall deduct from the compen-
  2       sation of each member who has received 32 years of credited service, 2%
  3       of such member's compensation as employee contributions. Commencing
  4       with the first payroll period coinciding with or following the effective date
  5       of this act, such contribution rate shall increase by an amount equal to
  6       .125% and shall increase by an amount equal to .125% each year there-
  7       after for the subsequent three years for a maximum member's contribution
  8       rate of 2.5%.
  9           (5) (a) Each participating employer, pursuant to the provisions of
10       section 414(h)(2) of the United States internal revenue code, shall pick
11       up and pay the contributions which would otherwise be payable by mem-
12       bers as prescribed in subsection (1) commencing with the third quarter
13       of 1984. The contributions so picked up shall be treated as employer
14       contributions for purposes of determining the amounts of federal income
15       taxes to withhold from the member's compensation.
16           (b) Member contributions picked up by the employer shall be paid
17       from the same source of funds used for the payment of compensation to
18       a member. A deduction shall be made from each member's compensation
19       equal to the amount of the member's contributions picked up by the
20       employer, provided that such deduction shall not reduce the member's
21       compensation for purposes of computing benefits under the system.
22           (c) Member contributions picked up by the employer shall be remit-
23       ted quarterly, or as the board may otherwise provide, to the executive
24       secretary for credit to the Kansas public employees retirement fund. Such
25       contributions shall be credited to a separate account within the member's
26       individual account so that amounts contributed by the member com-
27       mencing with the third quarter of 1984 may be distinguished from the
28       member contributions picked up by the employer. Interest shall be added
29       annually to members' individual accounts.
30           Sec. 8. K.S.A. 1997 Supp. 74-4967 is hereby amended to read as
31       follows: 74-4967. (1) Upon the basis of an annual actuarial valuation and
32       appraisal of the system conducted in the manner provided for in K.S.A.
33       74-4908 and amendments thereto, the board shall certify, on or before
34       July 15 of each year to each participating employer an actuarially deter-
35       mined estimate of the rate of contribution which shall be required to be
36       paid by each such participating employer to pay all of the liabilities which
37       shall accrue under the system from and after the entry date as determined
38       by the board, upon recommendation of the actuary. Such rate shall be
39       uniform for all participating employers, and shall be comprised of a rate
40       for benefits accruing after June 30, 1993, and a rate for amortization of
41       the additional liability for benefits provided by this act which is attribut-
42       able to service rendered before July 1, 1993. Such additional liability shall
43       be amortized over a period of 40 years commencing on July 1, 1993, by

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  1       annual payments that increase 4% for each year remaining in the amor-
  2       tization period. The employer's rate of contribution determined under
  3       this section shall not include the costs of administration of the system.
  4       The rate of contribution for employers determined under this section shall
  5       in no event be less than the member contribution rate as provided in
  6       K.S.A. 74-4965 and amendments thereto.
  7           (2) The board shall determine for each employer separately an
  8       amount sufficient to amortize over a period of not to exceed 40 years all
  9       liabilities for past service costs which shall have accrued at the time of
10       entry into the system. On the basis of such determination the board shall
11       annually certify to each participating employer separately an actuarially
12       determined estimate of the rate of contribution which shall be required
13       to be paid by that participating employer to pay all of the liabilities for
14       such past service costs. Such rate shall be termed the employer's prior
15       service contribution. The board may enter into agreements with any par-
16       ticipating employer which has employees or retirants under the special
17       pension systems established under K.S.A. 13-14a01 to 13-14a14, inclu-
18       sive, and amendments thereto or K.S.A. 14-10a01 to 14-10a15, inclusive,
19       and amendments thereto, for the purpose of scheduling the payment of
20       such past service costs in an orderly manner which will tend to stabilize
21       the annual total financial burden on such employers in meeting their
22       present and future obligations under this system and such special systems,
23       but in no event shall the annual prior service contribution be less than
24       the interest cost on the total of such past service liability.
25           (3) Each participating employer shall appropriate and pay to the sys-
26       tem a sum sufficient to satisfy the obligations under this act as certified
27       by the board.
28           (4) Each participating employer is hereby authorized to pay the em-
29       ployer's contribution from the same fund that the compensation for which
30       such contribution is made is paid from or from any other funds available
31       to it for such purpose. Each employer may levy annually at the time of
32       its levy of taxes, a tax which may be in addition to all other taxes authorized
33       by law for the purpose of making its contributions under this act, and, in
34       the case of cities and counties, to pay a portion of the principal and in-
35       terest on bonds issued by cities under the authority of K.S.A. 12-1774,
36       and amendments thereto, for the financing of redevelopment projects
37       upon property located in such county which tax, together with any other
38       fund available, shall be sufficient to enable it to make such contribution.
39       In lieu of levying the tax authorized in this subsection, any taxing subdi-
40       vision may pay such costs from any employee benefits contribution fund
41       established pursuant to K.S.A. 12-16,102 and amendments thereto.
42           (5) Employer contributions shall in no way be limited by any other
43       act which now or in the future establishes or limits the compensation of

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  1       any member.
  2           (6) The rate of contribution certified to each participating employer
  3       as provided in this section shall apply during the fiscal year of such par-
  4       ticipating employer which begins in the second calendar year following
  5       the year of the actuarial valuation, but the rate of contribution during the
  6       first year following the employer's entry date shall be equal to 16% of the
  7       amount of compensation on which members contribute during the year.
  8           (7) Each participating employer shall remit quarterly, or as the board
  9       may otherwise provide, all employee deductions and required employer
10       contributions to the executive secretary for credit to the Kansas public
11       employees retirement fund within 20 days after the end of the period
12       covered by the remittance or within 25 days after forms or written in-
13       structions from the system were mailed by the system to such employer,
14       whichever is later. Remittances of such deductions and contributions re-
15       ceived after such date are delinquent. Delinquent payments due under
16       this subsection (7) shall be subject to interest at the rate established for
17       interest on judgments under subsection (a) of K.S.A. 16-204 and amend-
18       ments thereto. At the request of the board, delinquent payments which
19       are due or interest owed on such payments, or both, may be deducted
20       from any other moneys payable to such employer by any department or
21       agency of the state.
22           Sec. 9. K.S.A. 20-2603, 20-2605 and 74-4919 and K.S.A. 1997 Supp.
23       74-4920, 74-4939, 74-4965 and 74-4967 are hereby repealed.
24           Sec. 10. This act shall take effect and be in force from and after its
25       publication in the statute book.
26      
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