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
43 of the board of trustees of the Kansas
public employees retirement system
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1 shall be deemed to have the same
force and effect as if performed by the
2 Kansas judges retirement board in
which such powers, duties and func-
3 tions were vested prior to July 1,
1975.
4 (c) On and after
July 1, 1975, whenever the Kansas judges retirement
5 board, or words of like effect, is
referred to or designated by a statute or
6 contract or other document, such
reference or designation shall be
7 deemed to apply to the board of
trustees of the Kansas public employees
8 retirement system.
9 (d) On and after
July 1, 1975, whenever the Kansas official court
10 reporters retirement board, or words of
like effect, is referred to or des-
11 ignated by a statute or contract or other
document, such reference or
12 designation shall be deemed to apply to the
board of trustees of the
13 Kansas public employees retirement
system.
14 (e) The board of
trustees of the Kansas public employees retirement
15 system shall adopt rules and regulations
necessary for the administration
16 of the retirement system for judges and
for the transaction of business
17 consistent with law. All rules or
regulations of the Kansas judges retire-
18 ment board in existence on July 1, 1975,
whether adopted when acting
19 as that board pursuant to K.S.A. 20-2604
and amendments thereto or
20 when acting as the Kansas official court
reporters retirement board pur-
21 suant to K.S.A. 20-2704, shall continue in
force and effect and shall be
22 deemed to be duly adopted rules or
regulations of the board of trustees
23 of the Kansas public employees retirement
system, until revised,
24 amended, revoked or nullified pursuant to
law.
25 (f) All decisions and
determinations of the Kansas judges retirement
26 board in effect on July 1, 1975, whether
made when acting as that board
27 pursuant to K.S.A. 20-2604 and
amendments thereto or when acting as
28 the Kansas official court reporters
retirement board pursuant to K.S.A.
29 20-2704, shall continue in force and effect
and shall be deemed to be
30 decisions and determinations of the board
of trustees of the Kansas public
31 employees retirement system, until revised,
amended, revoked or nulli-
32 fied pursuant to law.
33 Sec. 2. K.S.A.
20-2603 is hereby amended to read as follows: 20-
34 2603. (a) Except as otherwise provided in
this section, each judge shall
35 contribute 6% of the judge's salary for
each payroll period to the fund,
36 except that commencing the first payroll
period coinciding with or follow-
37 ing the effective date of this act, such
contribution rate shall increase by
38 an amount equal to .375% and shall
increase by an amount equal to .375%
39 each year thereafter for the subsequent
three years for a maximum mem-
40 ber contribution rate of 7.5%.
Commencing with the first payroll period
41 after 20 years of service by the judge and
after the judge reaches 65 years
42 of age, and for each payroll period
thereafter, such judge shall contribute
43 2% of such judge's salary to the fund,
except that commencing the first
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1 payroll period coinciding with or
following the effective date of this act,
2 such contribution rate shall
increase by an amount equal to .125% and
3 shall increase by an amount equal
to .125% each year thereafter for the
4 subsequent three years for a
maximum member contribution rate of 2.5%.
5 Commencing with the first payroll
period after the judge has enough
6 years of service to entitle such
judge upon retirement to the maximum
7 monthly retirement benefit of 70% of
the final average salary of such
8 judge provided under the provisions
of K.S.A. 20-2610 and amendments
9 thereto, and for each payroll period
thereafter, each judge shall contribute
10 4% of such judge's salary to the fund or,
commencing on and after the
11 effective date of this act, each such judge
shall contribute 2% of such
12 judge's salary to the fund, except that
commencing the first payroll period
13 coinciding with or following the
effective date of this act, such contribu-
14 tion rate shall increase by an amount
equal to .125% and shall increase
15 by an amount equal to .125% each year
thereafter for the subsequent
16 three years for a maximum member
contribution rate of 2.5%.
17 (b) The director of
accounts and reports shall deduct the amount
18 each judge is to contribute to the fund on
the payroll of each judge for
19 each payroll period showing the amount
deducted and its credit to the
20 fund. Such deductions shall be remitted
quarterly, or as the board may
21 otherwise provide, to the executive
secretary of the Kansas public em-
22 ployees retirement system for credit to the
fund to the credit of the
23 judge's individual account therein.
24 (c) Interest on each
judge's accumulated contributions at the rate
25 determined under subsection (a) of K.S.A.
74-4922 and amendments
26 thereto shall be added annually to the
judge's individual account in the
27 fund.
28 (d) No member who has
retired under the retirement system for
29 judges shall make contributions to that
system or receive any service
30 credit under that system for any service
after the date of such retirement.
31 (e) (1) 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 (a). The
contributions so picked up shall
35 be treated as employer contributions for
purposes of determining the
36 amounts of federal income taxes to withhold
from the member's com-
37 pensation.
38 (2) 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 retirement
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1 system for judges.
2 (3) Member
contributions picked up by the employer shall be re-
3 mitted quarterly, or as the board may
otherwise provide, to the executive
4 secretary for credit to the Kansas
public employees retirement fund. Such
5 contributions shall be credited to a
separate account within the member's
6 individual account so that amounts
contributed by the member may be
7 distinguished from the member
contributions picked up by the employer.
8 Interest shall be added annually to
members' individual accounts.
9
Sec. 3. K.S.A. 20-2605 is hereby amended to read as
follows: 20-
10 2605. (a) The board shall select and employ
or retain a qualified actuary
11 who shall serve at its pleasure as its
technical advisor on matters regarding
12 operation of the retirement system for
judges. The actuary shall:
13 (1) As soon after the
effective date as practicable and once every three
14 years thereafter, make a general
investigation of the actuarial experience
15 under the retirement system for judges
including mortality, retirement,
16 employment turnover and interest, and
recommend actuarial tables for
17 use in valuations and in calculating
actuarial equivalent values based on
18 such investigation; make a valuation of the
liabilities and reserves of the
19 retirement system for judges, and a
determination of the contributions
20 required by the retirement system for
judges to discharge its liabilities
21 and recommend to the board rates of
employer contributions required
22 to establish and maintain the retirement
system for judges on an actuarial
23 reserve basis.
24 (2) Perform such other
duties as may be assigned by the board.
25 (b) Upon the basis of
the actuarial valuation and appraisal and upon
26 the recommendation of the actuary, the
board shall certify, on or before
27 July 15 of each year, to the division of
budget an actuarially determined
28 estimate of the rate of contribution which
will be required, together with
29 all judges' contributions and other assets
of the retirement system for
30 judges to pay all liabilities which shall
exist or accrue under the retirement
31 system for judges, including amortization
of the unfunded accrued lia-
32 bility over a period of 40 years commencing
on July 1, 1993. The rate of
33 contribution for the state determined under
this section shall not include
34 the costs of administration of the system.
The rate of contribution for the
35 state determined under this section
shall in no event be less than the
36 judge's member contribution rate as
provided in K.S.A. 20-2603 and
37 amendments thereto, exclusive of the
amount of the rate of contribution
38 for employers attributable to the
provisions of K.S.A. 74-4927f and
39 amendments thereto.
40 (c) The division of the
budget and the governor shall include in the
41 budget and in the budget request for
appropriations for personal services
42 the sum required to satisfy the state's
obligation under the retirement
43 system for judges as certified by the board
and shall present the same to
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1 the legislature for allowance and
appropriation.
2
Sec. 4. K.S.A. 20-2606 is hereby amended to read as
follows: 20-
3 2606. (a) Any judge whose service is
terminated prior to retirement, for
4 any cause other than death,
may, upon written request to the board,
may
5 have returned the total amount of
accumulated contributions which the
6 judge has made to the fund after the
retirement system for judges has a
7 reasonable time to process the
application for withdrawal. The return of
8 accumulated contributions to a judge
shall preclude that judge from any
9 benefits under the retirement system
for judges unless and until that
10 judge again serves in such capacity.
11 (b) Any incumbent judge
over 70 years of age with a total service of
12 at least eight years at the time the
judge's present term of office expires,
13 or at the time of retirement if the judge
retires before the end of the
14 judge's present term, shall receive
retirement annuities as provided in
15 K.S.A. 20-2608, 20-2609 and 20-2610, and
any amendments thereto, un-
16 less the judge requests the return of
accumulated contributions under
17 this section.
18 (c) In case any judge,
who has had such judge's accumulated contri-
19 butions returned under this section, serves
again in such capacity, such
20 judge may return the amount refunded under
this section without interest
21 or penalty and regain such judge's original
status under the retirement
22 system for judges.
23 (d) Any member of the
retirement system for judges who was pre-
24 viously a member of the Kansas public
employees retirement system or
25 the Kansas police and firemen's retirement
system and who forfeited
26 service credit under either of those
systems by reason of termination of
27 employment and withdrawal of their
contributions to that system, may
28 elect to purchase service credit for the
previously forfeited service credit
29 by means of having employee
contributions as provided in K.S.A. 20-2603
30 and amendments thereto deducted from
such judge's compensation at an
31 additional rate of contribution, based
upon such judge's attained age at
32 the time of purchase and using actuarial
assumptions and tables in use
33 by the retirement system at such time of
purchase for such periods of
34 service. Such additional rate of
contribution shall commence at the begin-
35 ning of the quarter following such
election and shall remain in effect until
36 all of the full quarters of such service
have been purchased. Such member
37 may purchase such service by means
of a single lump-sum payment and
38 in lieu of employee contributions as
provided in this subsection. Such
39 service shall be recredited to that system.
The amount of the lump-sum
40 payment shall be determined by the actuary
using the member's then
41 current annual rate of compensation
and, the actuarial assumptions and
42 tables then currently in use by that
retirement system and the judge's
43 attained age.
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1
Sec. 5. K.S.A. 20-2610 is hereby amended to read as
follows: 20-
2 2610. (a) (1) A judge who retires
under K.S.A. 20-2608, and amendments
3 thereto, shall be entitled to receive
an annual annuity payable in monthly
4 amounts subject to subsection
(b), each monthly payment such annual
5 annuity of which shall be in
an amount equal to the total of 5% of the
6 final average salary of the judge,
determined as provided in subsection
7 (b), multiplied by the number of the
judge's years of service up to 10
8 years, and 3.5% of the final average
salary of the judge, determined as
9 provided in subsection (b),
multiplied by the number of the judge's years
10 of service in excess of 10 years, but such
monthly benefits annual annuity
11 shall not exceed 70% of the final average
salary of such judge, determined
12 as provided in subsection (b). A judge who
retires under K.S.A. 20-2608
13 and amendments thereto, and who became a
member of the system after
14 June 30, 1987, shall be entitled to receive
an annual annuity payable in
15 monthly amounts subject to
subsection (b), each monthly payment
such
16 annual amount of which shall be in
an amount equal to the total of 3.5%
17 of the final average salary of the judge,
determined as provided in sub-
18 section (b), multiplied by the number of
the judge's years of service, but
19 such monthly benefits
annual annuity shall not exceed 70% of the final
20 average salary of the judge, determined as
provided in subsection (b).
21 (2) For purposes of
this subsection, the date of membership for a
22 district magistrate judge who became a
member of the system as provided
23 by K.S.A. 20-2620 and amendments thereto
and who purchased service
24 as provided in subsection (c) of K.S.A.
20-2620 and amendments thereto
25 shall be the day such district
magistrate judge became a district magistrate
26 judge and if such district magistrate
judge's membership date as deter-
27 mined in this subsection is earlier than
July 1, 1987, such district mag-
28 istrate judge shall be entitled to the
5% of final average salary calculation
29 for up to 10 years of service as
provided in this subsection. Any additional
30 cost associated with the provisions of
this subsection shall be paid by such
31 district magistrate judge by means of a
single lump-sum payment or equal
32 annual payments for not to exceed five
years. The lump-sum or annual
33 payments shall be determined by the
system's actuary by using the mem-
34 ber's final average salary at the time
of application, actuarial assumptions
35 and tables currently in use by the
system and the member's attained age.
36 No participating employer shall pay all
or any part of any cost associated
37 with the provisions of this subsection.
Notwithstanding any other provi-
38 sion of this subsection, any district
magistrate judge, who became a dis-
39 trict magistrate judge earlier than July
1, 1987, and who elected to pur-
40 chase service as provided in subsection
(c) of K.S.A. 20-2620 and
41 amendments thereto prior to the
effective date of this act at the rate of
42 3.5%, may elect to purchase service at
the 5% rate for up to 10 years of
43 service as provided in this subsection
an additional amount of 1.5% of
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1 final average salary for each of
such years of employment of such district
2 magistrate judge as otherwise
provided in this subsection. Such district
3 magistrate judge may purchase such
service by making application there-
4 for prior to date of retirement at
an additional rate of contribution in
5 addition to the district
magistrate judge's rate of contribution as provided
6 in K.S.A. 20-2603 and amendments
thereto, based upon the district mag-
7 istrate judge's attained age at
the time of purchase and using actuarial
8 assumptions and tables in use by
the retirement system at the time of such
9 purchase. Such additional rate of
contribution shall commence at the be-
10 ginning of the quarter following such
election and shall remain in effect
11 until all quarters of such service have
been purchased. No participating
12 employer shall pay the cost, or any part
thereof, of any service authorized
13 to be purchased by a district magistrate
judge under this subsection.
14 (b) For any judge who
retires under K.S.A. 20-2608 or 20-2609, and
15 amendments thereto, on or after July 1,
1975, the annuity shall be based
16 on the final average salary of such judge
as provided in this subsection.
17 The final average salary of a judge who
becomes permanently physically
18 or mentally disabled and who is retired
under K.S.A. 20-2608 or 20-2609,
19 and amendments thereto, shall be determined
as if such judge had retired
20 on the date such judge became permanently
physically or mentally disa-
21 bled. The final average salary of a former
judge whose service is termi-
22 nated without retiring and who later
retires under K.S.A. 20-2608, and
23 amendments thereto, shall be determined as
if such former judge had
24 retired at the time such service was
terminated.
25 In the case of judges who
retire on or after July 1, 1993, the final
26 average salary shall mean the average
highest annual salary paid to the
27 judge for any three years of the last 10
years of service as a judge im-
28 mediately preceding retirement or
termination of employment, or if serv-
29 ice as a judge is less than three years,
then the final average salary shall
30 be the average annual salary paid to the
judge during the full period of
31 service as a judge, or if service as a
judge is less than one year, then the
32 final average salary shall be computed by
multiplying the amount of
33 monthly salary such judge was receiving at
the time of retirement by 12.
34 (c) The provisions of
law in effect on the retirement date of a judge
35 under the retirement system for judges
shall govern the retirement ben-
36 efit payable to the judge, any joint
annuitant and any beneficiary.
37 Sec. 6. K.S.A. 1997
Supp. 74-4902 is hereby amended to read as
38 follows: 74-4902. As used in articles 49
and 49a of chapter 74 and amend-
39 ments thereto, unless otherwise provided or
the context otherwise re-
40 quires:
41 (1) ``Accumulated
contributions'' means the sum of all contributions
42 by a member to the system which are
credited to the member's account,
43 with interest allowed thereon;
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1 (2) ``acts'' means
K.S.A. 74-4901 to 74-4929, inclusive, the
provisions
2 of articles 49 and 49a of chapter
74 of the Kansas Statutes Annotated and
3 amendments thereto;
4 (3) ``actuarial
equivalent'' means an annuity or benefit of equal value
5 to the accumulated contributions,
annuity or benefit, when computed
6 upon the basis of the actuarial
tables in use by the system;
7 (4) ``actuarial
tables'' means the actuarial tables approved and in use
8 by the board at any given time;
9 (5) ``actuary''
means the actuary or firm of actuaries employed or
10 retained by the board at any given
time;
11 (6) ``agent'' means the
individual designated by each participating em-
12 ployer through whom system transactions and
communication are di-
13 rected;
14 (7) ``beneficiary''
means any natural person or persons or estate
15 named by a member to receive any benefits
as provided for by this act.
16 Designations of beneficiaries by a member
who is a member of more
17 than one retirement system made on or after
July 1, 1987, shall be the
18 basis of any benefits payable under all
systems unless otherwise provided
19 by law. Except as otherwise provided by
subsection (33) of this section,
20 if there is no named beneficiary living at
time of member's death, any
21 benefits provided for by this act shall be
paid to: (A) The member's sur-
22 viving spouse; (B) the member's dependent
child or children; (C) the
23 member's dependent parent or parents; (D)
the member's nondependent
24 child or children; (E) the member's
nondependent parent or parents; (F)
25 the estate of the deceased member; in the
order of preference as specified
26 in this subsection. Any payment made to a
named beneficiary shall be a
27 full discharge and release to the system
from any further claims. Any
28 payment made to a beneficiary as provided
in clauses (A), (B), (C), (D),
29 (E) or (F) of this subsection, as
determined by the board, shall be a full
30 discharge and release to the system from
any further claims. Whenever
31 any payment is payable to more than one
beneficiary such payment shall
32 be made to such beneficiaries jointly. Any
benefits payable to a benefi-
33 ciary or beneficiaries who are minor
children or incompetent persons
34 shall be made in the name of the
beneficiary or beneficiaries and deliv-
35 ered to the lawfully appointed conservator
of such beneficiaries who was
36 nominated by will or as otherwise provided
by law, except that in those
37 cases where the benefit involves only the
payment of the member's ac-
38 cumulated contributions with interest as
provided by this act in an amount
39 not to exceed $500, the board is hereby
authorized in its discretion with-
40 out the appointment of a conservator or the
giving of a bond to pay such
41 amount as is due to the minor or minors
themselves, any payment so
42 made shall be a full discharge and release
to the system from any further
43 claims;
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1 (8) ``board of
trustees,'' ``board'' or ``trustees'' means the managing
2 body of the system which is known as
the Kansas public employees re-
3 tirement system board of
trustees;
4
(9) ``compensation'' means all salary, wages and other
remuneration
5 payable to a member for personal
services performed for a participating
6 employer, including maintenance or
any allowance in lieu thereof pro-
7 vided a member as part of
compensation, but not including reimburse-
8 ment for travel or moving expenses or
on and after July 1, 1994, payment
9 pursuant to an early retirement
incentive program made prior to the
10 retirement of the member. Beginning with
the employer's fiscal year
11 which begins in calendar year 1991 or for
employers other than the state
12 of Kansas, beginning with the fiscal year
which begins in calendar year
13 1992, when the compensation of a member who
remains in substantially
14 the same position during any two
consecutive years of participating serv-
15 ice used in calculating final average
salary is increased by an amount which
16 exceeds 15%, then the amount of such
increase which exceeds 15% shall
17 not be included in compensation, except
that (A) any amount of com-
18 pensation for accumulated sick leave or
vacation or annual leave paid to
19 the member, (B) any increase in
compensation for any member due to a
20 reclassification or reallocation of such
member's position or a reassign-
21 ment of such member's job classification to
a higher range or level and
22 (C) any increase in compensation as
provided in any contract entered into
23 prior to January 1, 1991, and still in
force on the effective date of this act,
24 pursuant to an early retirement incentive
program as provided in K.S.A.
25 72-5395 et seq. and amendments thereto,
shall be included in the amount
26 of compensation of such member used in
determining such member's
27 final average salary and shall not be
subject to the 15% limitation provided
28 in this subsection. Any contributions by
such member on the amount of
29 such increase which exceeds 15% which is
not included in compensation
30 shall be returned to the member. Unless
otherwise provided by law, be-
31 ginning with the employer's fiscal year
coinciding with or following July
32 1, 1985, compensation shall include any
amounts for tax sheltered an-
33 nuities or deferred compensation plans.
Beginning with the employer's
34 fiscal year which begins in calendar year
1991, compensation shall include
35 amounts under sections 403b, 457 and 125 of
the federal internal revenue
36 code of 1986 and any other section of the
federal internal revenue code
37 of 1986 which defers or excludes amounts
from inclusion in income;
38 (10) ``credited
service'' means the sum of participating service and
39 prior service and in no event shall
credited service include any service
40 which is credited under another retirement
plan authorized under any
41 law of this state;
42 (11) ``dependent'' means
a parent or child of a member who is de-
43 pendent upon the member for at least 1/2 of
such parent or child's support;
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1 (12) ``effective
date'' means the date upon which the system becomes
2 effective by operation of law;
3 (13) ``eligible
employer'' means the state of Kansas, and any county,
4 city, township, special district or
any instrumentality of any one or several
5 of the aforementioned or any
noncommercial public television or radio
6 station located in this state which
receives state funds allocated by the
7 Kansas public broadcasting commission
whose employees are covered by
8 social security. If a class or
several classes of employees of any above
9 defined employer are not covered by
social security, such employer shall
10 be deemed an eligible employer only with
respect to such class or those
11 classes of employees who are covered by
social security;
12 (14) ``employee'' means
any appointed or elective officer or employee
13 of a participating employer whose
employment is not seasonal or tem-
14 porary and whose employment requires at
least 1,000 hours of work per
15 year, but not including: (A) Any
person covered by or eligible for or who
16 will become eligible for a
retirement annuity under the provisions of
17 K.S.A. 74-4925 and amendments
thereto except as otherwise specifically
18 provided in subsection (3) of
K.S.A. 74-4925 and amendments thereto
19 and this subsection; (B)
Any employee who is a contributing member of
20 the United States civil service retirement
system; (C) any employee of an
21 eligible employer who is a
participant in public service employment under
22 title II and title VI of the
federal comprehensive employment and training
23 act of 1973; (D) (B)
any employee who is a contributing member of the
24 federal employees retirement system; and
(C) any employee or class of
25 employees specifically exempted by law.
After June 30, 1975, no person
26 who is otherwise eligible for membership in
the Kansas public employees
27 retirement system shall be barred from such
membership by reason of
28 coverage by, eligibility for or future
eligibility for a retirement annuity
29 under the provisions of K.S.A. 74-4925 and
amendments thereto, except
30 that no person shall receive service credit
under the Kansas public em-
31 ployees retirement system for any period of
service for which benefits
32 accrue or are granted under a retirement
annuity plan under the provi-
33 sions of K.S.A. 74-4925 and amendments
thereto. After June 30, 1982,
34 no person who is otherwise eligible for
membership in the Kansas public
35 employees retirement system shall be barred
from such membership by
36 reason of coverage by, eligibility for or
future eligibility for any benefit
37 under another retirement plan authorized
under any law of this state,
38 except that no such person shall receive
service credit under the Kansas
39 public employees retirement system for any
period of service for which
40 any benefit accrues or is granted under any
such retirement plan. Em-
41 ployee shall include persons who are in
training at or employed by, or
42 both, a sheltered workshop for the blind
operated by the secretary of
43 social and rehabilitation services. The
entry date for such persons shall
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11
1 be the beginning of the first pay
period of the fiscal year commencing in
2 calendar year 1986. Such persons
shall be granted prior service credit in
3 accordance with K.S.A. 74-4913 and
amendments thereto. However, such
4 persons classified as home industry
employees shall not be covered by
5 the retirement system;
6 (15) ``entry
date'' means the date as of which an eligible employer
7 joins the system. The first entry
date pursuant to this act is January 1,
8 1962;
9 (16) ``executive
secretary'' means the managing officer of the system
10 employed by the board under this act;
11 (17) ``final average
salary'' means in the case of a member who retires
12 prior to January 1, 1977, and in the case
of a member who retires after
13 January 1, 1977, and who has less than five
years of participating service
14 after January 1, 1967, the average highest
annual compensation paid to
15 such member for any five years of the last
10 years of participating service
16 immediately preceding retirement or
termination of employment, or in
17 the case of a member who retires on or
after January 1, 1977, and who
18 has five or more years of participating
service after January 1, 1967, the
19 average highest annual compensation paid to
such member on or after
20 January 1, 1967, for any five years of
participating service preceding re-
21 tirement or termination of employment, or,
in any case, if participating
22 service is less than five years, then the
average annual compensation paid
23 to the member during the full period of
participating service, or, in any
24 case, if the member has less than one
calendar year of participating service
25 such member's final average salary shall be
computed by multiplying such
26 member's highest monthly salary received in
that year by 12; in the case
27 of a member who became a member under
subsection (3) of K.S.A. 74-
28 4925 and amendments thereto, or who became
a member with a partic-
29 ipating employer as defined in subsection
(3) of K.S.A. 74-4931 and
30 amendments thereto and who elects to have
compensation paid in other
31 than 12 equal installments, such
compensation shall be annualized as if
32 the member had elected to receive 12 equal
installments for any such
33 periods preceding retirement; in the case
of a member who retires after
34 July 1, 1987, the average highest annual
compensation paid to such mem-
35 ber for any four years of participating
service preceding retirement or
36 termination of employment; in the case of a
member who retires on or
37 after July 1, 1993, who was first hired as
an employee, as defined in
38 subsection (14) of K.S.A. 74-4902 and
amendments thereto, prior to July
39 1, 1993, the average highest annual
compensation, as defined in subsec-
40 tion (9), paid to such member for any four
years of participating service
41 preceding retirement or termination of
employment or the average high-
42 est annual salary, as defined in subsection
(34), paid to such member for
43 any three years of participating service
preceding retirement or termi-
H Sub. for SB 618--Am. by HCW
12
1 nation of employment, whichever is
greater; and in the case of a member
2 who retires on or after July 1, 1993,
and who is first hired as an employee,
3 as defined in subsection (14) of
K.S.A. 74-4902 and amendments thereto,
4 on or after July 1, 1993, the average
highest annual salary, as defined in
5 subsection (34), paid to such member
for any three years of participating
6 service preceding retirement or
termination of employment. Final aver-
7 age salary shall not include any
purchase of participating service credit
8 by a member as provided in subsection
(2) of K.S.A. 74-4919h and
9 amendments thereto which is completed
within five years of retirement.
10 For any application to purchase or
repurchase service credit for a certain
11 period of service as provided by law
received by the system after May 17,
12 1994, for any member who will have
contributions deducted from such
13 member's compensation at a percentage rate
equal to two or three times
14 the employee's rate of contribution or will
begin paying to the system a
15 lump-sum amount for such member's purchase
or repurchase and such
16 deductions or lump-sum payment commences
after the commencement
17 of the first payroll period in the third
quarter, ``final average salary'' shall
18 not include any amount of compensation or
salary which is based on such
19 member's purchase or repurchase. Any
application to purchase or repur-
20 chase multiple periods of service shall be
treated as multiple applications.
21 For purposes of this subsection, the date
that such member is first hired
22 as an employee for members who are
employees of employers that
23 elected to participate in the system on or
after January 1, 1994, shall be
24 the date that such employee's employer
elected to participate in the sys-
25 tem;
26 (18) ``fiscal year''
means, for the Kansas public employees retirement
27 system, the period commencing July 1 of any
year and ending June 30 of
28 the next;
29 (19) ``Kansas public
employees retirement fund'' means the fund cre-
30 ated by this act for payment of expenses
and benefits under the system
31 and referred to as the fund;
32 (20) ``leave of
absence'' means a period of absence from employment
33 without pay, authorized and approved by the
employer, and which after
34 the effective date does not exceed one
year;
35 (21) ``member'' means an
eligible employee who is in the system and
36 is making the required employee
contributions, or any former employee
37 who has made the required contributions to
the system and has not re-
38 ceived a refund;
39 (22) ``military
service'' means service in the armed forces of the
40 United States or in the United States
public health service, which service
41 is immediately preceded by a period of
employment as an employee or
42 by the entering into of an employment
contract with a participating em-
43 ployer and is followed by return to
employment as an employee with the
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13
1 same or another participating
employer within 12 months immediately
2 following discharge from such
military service, except that if the board
3 determines that such return within 12
months was made impossible by
4 reason of a service-connected
disability, the period within which the em-
5 ployee must return to employment with
a participating employer shall be
6 extended not more than two years from
the date of discharge or separa-
7 tion from military service;
8 (23) ``normal
retirement date'' means the date on or after which a
9 member may retire with full
retirement benefits pursuant to K.S.A. 74-
10 4914 and amendments thereto;
11 (24) ``participating
employer'' means an eligible employer who has
12 agreed to make contributions to the system
on behalf of its employees;
13 (25) ``participating
service'' means the period of employment after
14 the entry date for which credit is granted
a member;
15 (26) ``prior service''
means the period of employment of a member
16 prior to such member's entry date for which
credit is granted a member
17 under this act;
18 (27) ``prior service
annual salary'' means the highest annual salary,
19 not including any amounts received as
payment for overtime or as re-
20 imbursement for travel or moving expense,
received for personal services
21 by the member from the current employer in
any one of the three cal-
22 endar years immediately preceding January
1, 1962, or the entry date of
23 the employer, whichever is later, except
that if a member entered the
24 employment of the state during the calendar
year 1961, the prior service
25 annual salary shall be computed by
multiplying such member's highest
26 monthly salary received in that year by
12;
27 (28) ``retirant'' means
a member who has retired under this system;
28 (29) ``retirement
benefit'' means a monthly income or the actuarial
29 equivalent thereof paid in such manner as
specified by the member pur-
30 suant to this act or as otherwise allowed
to be paid at the discretion of
31 the board, with benefits accruing from the
first day of the month coin-
32 ciding with or following retirement and
ending on the last day of the
33 month in which death occurs. Upon proper
identification a surviving
34 spouse may negotiate the warrant issued in
the name of the retirant;
35 (30) ``retirement
system'' or ``system'' means the Kansas public em-
36 ployees retirement system as established by
this act and as it may be
37 amended;
38 (31) ``social security''
means the old age, survivors and disability in-
39 surance section of the federal social
security act;
40 (32) ``total
disability'' means a physical or mental disability which pre-
41 vents the member from engaging, for
remuneration or profit, in any oc-
42 cupation for which the member is reasonably
suited by education, training
43 or experience;
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14
1 (33) ``trust''
means an express trust, created by a trust instrument,
2 including a will, designated by a
member to receive payment of the in-
3 sured death benefit under K.S.A.
74-4927 and amendments thereto and
4 payment of the member's accumulated
contributions under subsection
5 (1) of K.S.A. 74-4916 and amendments
thereto. A designation of a trust
6 shall be filed with the board. If
there is a designated trust at the time of
7 the member's death, the insured death
benefit for the member under
8 K.S.A. 74-4927 and amendments thereto
and the member's accumulated
9 contributions under subsection (1) of
K.S.A. 74-4916 and amendments
10 thereto shall be paid to the trust in lieu
of the member's beneficiary. If
11 no will is admitted to probate within six
months after the death of the
12 member or no trustee qualifies within such
six months or if the designated
13 trust fails, for any reason whatsoever, the
insured death benefit under
14 K.S.A. 74-4927 and amendments thereto and
the member's accumulated
15 contributions under subsection (1) of
K.S.A. 74-4916 and amendments
16 thereto shall be paid in accordance with
the provisions of subsection (7)
17 of this section as in other cases where
there is no named beneficiary living
18 at the time of the member's death and any
payments so made shall be a
19 full discharge and release to the system
from any further claims; and
20 (34) ``salary'' means
all salary and wages payable to a member for
21 personal services performed for a
participating employer, including main-
22 tenance or any allowance in lieu thereof
provided a member as part of
23 salary. Salary shall not include
reimbursement for travel or moving ex-
24 penses, payment for accumulated sick leave
or vacation or annual leave,
25 severance pay or any other payments to the
member determined by the
26 board to not be payments for personal
services performed for a partici-
27 pating employer constituting salary or on
and after July 1, 1994, payment
28 pursuant to an early retirement incentive
program made prior to the
29 retirement of the member. When the salary
of a member who remains
30 in substantially the same position during
any two consecutive years of
31 participating service used in calculating
final average salary is increased
32 by an amount which exceeds 15%, then the
amount of such increase
33 which exceeds 15% shall not be included in
salary. Any contributions by
34 such member on the amount of such increase
which exceeds 15% which
35 is not included in compensation shall be
returned to the member. Unless
36 otherwise provided by law, salary shall
include any amounts for tax shel-
37 tered annuities or deferred compensation
plans. Salary shall include
38 amounts under sections 403b, 457 and 125 of
the federal internal revenue
39 code of 1986 and any other section of the
federal internal revenue code
40 of 1986 which defers or excludes amounts
from inclusion in income. In
41 any case, if participating service is less
than three years, then the average
42 annual salary paid to the member during the
full period of participating
43 service, or, in any case, if the member has
less than one calendar year of
H Sub. for SB 618--Am. by HCW
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1 participating service such member's
final average salary shall be com-
2 puted by multiplying such member's
highest monthly salary received in
3 that year by 12.
4
Sec. 7. K.S.A. 1997 Supp. 74-4907 is hereby amended to
read as
5 follows: 74-4907. (1) The principal
office of the system shall be in quarters
6 at Topeka, Kansas. Offices
shall be assigned to the system by the secretary
7 of
administration.
8 (2) The board
shall keep a complete record of all proceedings which
9 shall be open at all reasonable hours
to inspection. Any agreement in
10 settlement of litigation involving the
system and the investment of moneys
11 of the fund shall be open for inspection by
any person and suitable facil-
12 ities shall be made available by the system
for this purpose as provided
13 by the provisions of K.S.A. 45-215 et seq.
and amendments thereto. A
14 report covering the operation of the system
for the past fiscal year, in-
15 cluding income and disbursements, and of
the financial condition of the
16 system at the end of such fiscal year,
showing the valuation of assets and
17 investments and liabilities of the system,
shall be delivered after the end
18 of each fiscal year and prior to January 1
of the next fiscal year to the
19 governor and to the chairperson of the
legislative coordinating council,
20 to the secretary of the senate and to the
chief clerk of the house of rep-
21 resentatives and shall be made readily
available to the members and par-
22 ticipating employers of the system. Such
report shall include the financial
23 statements of the system and supporting
schedules, presented in accord-
24 ance with generally accepted accounting
principles. Such supporting
25 schedules presented in the annual report
shall include a listing which
26 reports the cost and the fiscal year end
lower amount of cost or market
27 value for each individual alternative
investment of the system which was
28 initiated on or after July 1, 1991, and
reports, in aggregate, the cost and
29 the fiscal year end lower amount of cost or
market value for those alter-
30 native investments of the system initiated
prior to July 1, 1991. The re-
31 tirement system shall maintain a listing
which reports the cost and the
32 fiscal year end lower amount of cost or
market value for each individual
33 alternative investment of the system which
was initiated prior to July 1,
34 1991, and such listing shall be available
for review in camera by the joint
35 committee on pensions, investments and
benefits and as may be required
36 under the provisions of the legislative
post audit act.
37 Sec. 8. K.S.A. 1997
Supp. 74-4910 is hereby amended to read as
38 follows: 74-4910. (1) An eligible employer
may join the system on January
39 1 of any year. Application for affiliation
shall be in the form of a resolution
40 approved by the governing or legislative
body of the eligible employer or
41 by any other body or officer authorized by
law or recognized by the board
42 to approve the action. No city or township
shall become a participating
43 employer except by the adoption of a
resolution therefor, which shall be
H Sub. for SB 618--Am. by HCW
16
1 published once in the official city
or township newspaper or, if there is
2 none, in a newspaper of general
circulation in the city or county. No such
3 resolution shall take effect until 60
days after its final publication. If within
4 60 days of its final publication a
petition signed by electors equal in num-
5 ber to not less than 10% of the
electors who voted at the last preceding
6 regular election in the township, in
the case of townships, the last regular
7 city election in the city, in the
case of cities is filed in the office of the
8 clerk of such city, or township
demanding that such resolution be sub-
9 mitted to a vote of the electors, the
resolution shall not take effect until
10 submitted to a referendum and approved by a
majority of the electors
11 voting thereon. A 2/3 vote of the
members-elect of the governing body
12 shall be necessary for the affiliation of
any eligible employer other than
13 a city or township. An application for
affiliation with the system shall be
14 filed with the board not later than 30 days
prior to the date participation
15 is to begin, except as such time limit may
be extended by the board. Upon
16 the filing of a certified copy of such
resolutions with the board an election
17 pursuant to this section shall be
irrevocable, and the employer shall be-
18 come a participating employer on January 1
of the year immediately fol-
19 lowing the filing of such election with the
board.
20 (2) The state of Kansas
in its capacity as an eligible employer, shall
21 become, by operation of law, a
participating employer on the first entry
22 date. The Kansas turnpike authority shall
not become a participating em-
23 ployer nor shall its officers or employees
be covered by the retirement
24 system until such time as its governing
body by a 2/3 vote of the members
25 of such governing body adopts a resolution
for affiliation and files the
26 same in the same manner and on the same
conditions as in the case of
27 an eligible employer other than a city or
township.
28 (3) If a participating
employer is paying or has paid the salary or other
29 compensation of the judge, clerk or any
other employee, whether elective
30 or appointive, such judge, clerk or other
employee of such court or courts,
31 whether elective or appointive, shall be
deemed an employee of the par-
32 ticipating employer. Such employee shall be
governed by the provisions
33 governing other eligible employees of such
participating employer. Any
34 participating employer which has not
heretofore included such employees
35 as eligible employees under the retirement
system shall on the first day
36 of the month coinciding with or following
the effective date of this act
37 include such employees if otherwise
eligible as eligible employees under
38 the retirement system. Such employees,
whether elective or appointive,
39 if employed on the employer's entry date
may elect to pay forthwith the
40 employee contributions from the employer's
entry date and thereby be
41 governed by the provisions governing other
employees employed by the
42 participating employer on entry date except
that no such employee shall
43 be considered to be new employees on the
first day of the month coin-
H Sub. for SB 618--Am. by HCW
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1 ciding with or following the
effective date of this act and commence
2 making employee contributions in
compliance with other provisions gov-
3 erning the retirement system and the
participating employer shall make
4 the employer contributions in
accordance with the alternative elected by
5 the employee and other provisions
governing the retirement system.
6 (4) Any employer
whose employees are covered by social security and
7 who otherwise do not meet the
provisions of subsection (13) of K.S.A.
8 74-4902 and amendments thereto may
elect to affiliate under this section
9 upon meeting the definition of a
governmental entity or instrumentality
10 as determined by the system. If, subsequent
to such determination, the
11 United States internal revenue service
determines that such employer
12 does not meet the definition of a
governmental entity or instrumentality,
13 such affiliation shall be null and void and
all employee accrued rights
14 associated with such affiliation shall be
null and void and the system shall
15 refund such amounts presently credited to
each employee's account and
16 an equivalent amount to the employer for
each employee. The provisions
17 of this subsection shall apply to current
and future participating employ-
18 ers.
19 (5) For affiliations
on and after January 1, 1999, any eligible em-
20 ployer, prior to the filing of an
application for affiliation under this system,
21 shall request the board of trustees to
submit a proposal for such affiliation
22 including an estimate of the employer's
contribution rate necessary to
23 comply with the actuarial standard of
this system. Such eligible employer
24 shall furnish all necessary data from
which such proposal is prepared,
25 and shall pay all costs
involved.
26 Sec. 9. K.S.A. 1997
Supp. 74-4911 is hereby amended to read as
27 follows: 74-4911. (1) Any employee of a
participating employer other than
28 an elected official on the entry date of
such employer shall be a member
29 of the system on either the entry date or
the first day of the payroll period
30 coinciding with or following the completion
of one year of service, which-
31 ever is later. For purposes of this act
occasional breaks in service which
32 shall not exceed an aggregate of 10 days in
any such year shall not con-
33 stitute a break in service for purposes of
determining the membership
34 date of such employee.
35 (2) Except as otherwise
provided in this subsection, any employee
36 other than an elected official who is
employed by a participating employer
37 after the entry date of such employer shall
be a member of the system
38 on the first day of the payroll period
coinciding with or following com-
39 pletion of one year of continuous service.
For purposes of this act, oc-
40 casional breaks in service which shall not
exceed an aggregate of 10 days
41 in any such year shall not constitute a
break in continuous service for
42 purposes of determining the membership date
of such employee. For
43 purposes of this subsection, any employee
of a local governmental unit
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1 which has its own pension plan who
becomes an employee of a partici-
2 pating employer as a result of a
merger or consolidation of services pro-
3 vided by local governmental units,
which occurred on January 1, 1994,
4 may count service with such local
governmental unit in determining
5 whether such employee has met the one
year of continuous service re-
6 quirement contained in this
subsection.
7 (3) Any employee
who is an elected official and is eligible to join the
8 system shall elect to become or not
to become a member of the system.
9 Such election shall become effective
immediately upon making such elec-
10 tion, if such election is made within 14
days of taking the oath of office
11 or, otherwise, on the first day of
the first payroll period of the first quarter
12 following receipt of the election in the
office of the retirement system.
13 In the event that such elected official
fails to file the election to become
14 a member of the retirement system, it shall
be presumed that such person
15 has elected not to become a member.
16 (4) Any employee other
than an elected official who is in military
17 service or on leave of absence on the entry
date of such employee's em-
18 ployer shall become a member of the system
upon returning to active
19 employment or on the first day of the
payroll period coinciding with or
20 following the completion of one year of
service, whichever is later. For
21 purposes of this act, occasional breaks in
service which shall not exceed
22 an aggregate of 10 days in any such year
shall not constitute a break in
23 service for purposes of determining the
membership date of such em-
24 ployee.
25 (5) Any employee of the
state of Kansas other than an elected official,
26 who is receiving or is eligible for
assistance by the state board of regents
27 in the purchase of a retirement annuity
under K.S.A. 74-4925, and
28 amendments thereto, and who becomes
ineligible for such assistance be-
29 cause such employee's position is
reclassified to a position in the classified
30 service under the Kansas civil service act,
or who becomes ineligible for
31 such assistance because such person accepts
and transfers to a position
32 in the classified service under the Kansas
civil service act shall be a mem-
33 ber of the system on the first day of the
payroll period coinciding with or
34 following the effective date of such
reclassification or transfer. Any such
35 employee who became ineligible for such
assistance prior to the effective
36 date of this act because of such a
reclassification or such a transfer oc-
37 curring prior to the effective date of this
act and who is not a member of
38 the system on the effective date of this
act shall be a member of the
39 system on the first day of the payroll
period coinciding with or following
40 the effective date of this act.
41 (6) Any employee of the
state board of regents or of an educational
42 institution under its management, other
than an elected official, who is a
43 member of the system and who becomes
ineligible to be a member of
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19
1 the system because such employee's
position is reclassified to a position
2 under the Kansas civil service act
which is eligible for assistance by the
3 state board of regents in the
purchase of a retirement annuity under
4 K.S.A. 74-4925 and amendments
thereto, or who becomes ineligible to
5 be a member of the system because
such employee transfers to a position
6 under the Kansas civil service act
which is eligible for such assistance,
7 shall become eligible for such
assistance in accordance with the provisions
8 of K.S.A. 74-4925 and amendments
thereto, unless such employee files
9 a written election in the office of
the retirement system, in the form and
10 manner prescribed by the board of trustees
thereof, to remain a member
11 of the system prior to the first day of the
first complete payroll period
12 occurring after the effective date of such
reclassification or transfer. Fail-
13 ure to file such written election shall be
presumed to be an election not
14 to remain a member of the system and to
become eligible for assistance
15 by the state board of regents in the
purchase of a retirement annuity
16 under K.S.A. 74-4925 and amendments
thereto. Such election, whether
17 to remain a member of the system or to
become eligible for such assis-
18 tance, shall be effective as of the
effective date of such reclassification or
19 transfer, and shall be irrevocable.
20 (7) Any employee who is
an elected official and is eligible to join the
21 system as a result of being an elected
official, and who at the time of
22 becoming an elected official is already a
member of the system by being
23 or having been an employee of a
participating employer shall elect to
24 continue as a member of the system or not
to continue as a member of
25 the system. Such election shall become
effective on the first day of the
26 first payroll period of the first quarter
following receipt of the election in
27 the office of the retirement system. In the
event that such elected official
28 fails to file the election to continue as a
member of the system or not to
29 continue as a member of the system, it
shall be presumed that such
30 elected official has elected to continue as
a member of the system.
31 Sec. 10. K.S.A.
1997 Supp. 74-4911f is hereby amended to read as
32 follows: 74-4911f. (a) Subject to
procedures or limitations prescribed by
33 the governor, any state officer may elect
to not become a member of the
34 system.
35 (b) (1) Any such
state officer described in subsection (a) who is a
36 member of the Kansas public employees
retirement system, on or after
37 the effective date of this act, may elect
to not be a member by filing an
38 election with the office of the retirement
system. Each state officer filing
39 such election may withdraw the state
officer's accumulated contributions
40 then on deposit with the system in the same
manner as prescribed in
41 K.S.A. 74-4917 and amendments thereto for
employees upon termina-
42 tion.
43 (2) Any state officer
who has filed an election and received a refund
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1 of contributions shall be entitled to
again become a member of the system
2 upon the filing of proper notice in
such form as prescribed by the system
3 and upon the making of a single
lump-sum payment in an amount equal
4 to all withdrawn contributions, plus
interest at a rate specified by the
5 system.
6 (c) Subject to
limitations prescribed by the secretary of administra-
7 tion, the state agency employing any
employee who has filed an election
8 as provided under subsection (a) or
(b) and who has entered into an
9 employee participation agreement, as
provided in K.S.A. 75-5524 and
10 amendments thereto for deferred
compensation pursuant to the Kansas
11 public employees deferred compensation plan
shall contribute to such
12 plan on such employee's behalf an amount
equal to 8% of the employee's
13 salary, as such salary has been approved
pursuant to K.S.A. 75-2935b and
14 amendments thereto or as otherwise
prescribed by law, except that for a
15 state officer who is a member of the
legislature, the state agency shall
16 contribute 8% of any amounts payable
because the employee is a member
17 of the legislature in accordance with
any statute providing payments for
18 such member of the legislature, but not
including any payment for mileage
19 allowance.
20 (d) As used in this
section and K.S.A. 74-4927k and amendments
21 thereto, ``state officer'' means the
secretary of administration, secretary
22 on aging, secretary of commerce and
housing, secretary of corrections,
23 secretary of health and environment,
secretary of human resources, sec-
24 retary of revenue, secretary of social and
rehabilitation services, secretary
25 of transportation, secretary of wildlife
and parks, superintendent of the
26 Kansas highway patrol, secretary of
agriculture, executive director of the
27 Kansas lottery, executive director of the
Kansas racing commission, pres-
28 ident of the Kansas development finance
authority, state fire marshal,
29 state librarian, securities commissioner,
adjutant general, members of the
30 state board of tax appeals, members of the
Kansas parole board, members
31 of the state corporation commission, any
unclassified employee on the
32 staff of officers of both houses of the
legislature, any unclassified em-
33 ployee appointed to the governor's or
lieutenant governor's staff and, any
34 person employed by the legislative branch
of the state of Kansas, other
35 than any such person receiving service
credited under the Kansas public
36 employees retirement system or any other
retirement system of the state
37 of Kansas therefor, who elected to be
covered by the provisions of this
38 section as provided in subsection (e) of
K.S.A. 46-1302 and amendments
39 thereto or who is first employed on or
after July 1, 1996, by the legislative
40 branch of the state of Kansas, any
member of the legislature and any
41 person employed by the office of revisor
of statutes, the division of legis-
42 lative administrative services, Kansas
legislative research department and
43 legislative division of post
audit.
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21
1 (e) The provisions
of this section shall not apply to any state officer
2 who has elected to remain eligible
for assistance by the state board of
3 regents as provided in subsection (a)
of K.S.A. 74-4925 and amendments
4 thereto.
5
Sec. 11. K.S.A. 1997 Supp. 74-4913 is hereby amended to
read as
6 follows: 74-4913. (1) Prior service
shall be credited as follows:
7 (a) A member shall
receive full credit for continuous employment
8 prior to the entry date with such
member's employer on the entry date.
9 If the employee was employed on March
15, 1961, by the employer who
10 is the employee's employer on the
employee's entry date, then all such
11 previous employment, whether or not
continuous, shall be credited; oth-
12 erwise no credit shall be granted for
employment prior to a break in
13 continuous employment. Any member or
retirant who has been credited
14 with prior service as hereinbefore provided
and who was employed by
15 any participating employer on March 15,
1961, may apply to the board
16 on such forms as it may prescribe for prior
service credit with a partici-
17 pating employer other than the member's
entry date employer. Upon
18 receipt of written verification of such
employment from the participating
19 employer, the board may grant such
additional prior service credit and
20 with respect to a retirant, shall adjust
the amount of the retirement ben-
21 efit accordingly commencing with the next
monthly benefit payment due
22 following receipt of the written
verification, except that such retirant shall
23 not be entitled to any retroactive
adjustment in the amount of such re-
24 tirement benefit as a result of the board
granting such additional prior
25 service credit. In the case of any person
other than a retirant receiving a
26 retirement benefit, such person may make
application for an adjustment
27 in the benefit amount in the same manner as
a member or retirant, and
28 in such case the adjustment in the benefit
amount shall be determined
29 by the board upon the advice of the
actuary, and shall commence with
30 the next monthly benefit payment due
following receipt of the written
31 verification;
32 (b) leaves of absence
and military service shall not be counted as
33 breaks in continuous employment; however,
military service which is im-
34 mediately preceded and followed by
employment with a participating
35 employer shall be credited, except that
after July 1, 1974, not more than
36 five years' credit for military service
shall be granted hereunder, but
37 leaves of absence shall not be
credited;
38 (c) any member who was
employed in the Kansas state employment
39 service, now a section of the Kansas
division of employment security,
40 during any of the time the Kansas state
employment service was loaned
41 by the state to the federal government
(January 1, 1942, for the duration
42 of the emergency period of world war II,
which service was returned to
43 the state by the federal government
effective November 16, 1946) shall
H Sub. for SB 618--Am. by HCW
22
1 be entitled to prior service credit
for the time so employed during the
2 period stated for any service
rendered under the jurisdiction of the United
3 States employment service for the
federal government in like manner as
4 if the employment service had
remained under the jurisdiction of the
5 state of Kansas;
6 (d) any member who
is not otherwise eligible for service credit as
7 provided for in subsection (1)(a) may
be granted credit for the service
8 upon the attainment of 38 quarters of
participating service;
9 (e) any member who
was employed by the university of Wichita prior
10 to July 1, 1964, shall be entitled to prior
service credit for such time of
11 employment under the Kansas public
employees retirement system,
12 when such employment is not the basis for
other pension rights.
13 (2) Participating
service shall be credited as follows: (a) A member
14 shall receive credit for participating
service with a participating employer
15 in accordance with the rules and
regulations established by the board of
16 trustees, except that no more than one
calendar quarter of participating
17 service shall be credited for any
employment within any one calendar
18 quarter;
19 (b) leaves of absence
and military service shall not count as a break
20 in continuous employment provided the
member leaves such member's
21 accumulated contribution on deposit with
the fund; however, the period
22 of military service shall be credited,
except that after July 1, 1974, not
23 more than five years' credit for military
service shall be granted here-
24 under, but leaves of absence shall not be
credited. Employees who enter
25 the military service from their employment
after the employer's entry
26 date and who have not completed one year of
service at the time of their
27 entry into the military service, shall not
become members of the retire-
28 ment system until they return to the
employment of that or another par-
29 ticipating employer. In the case of such
employee whose combined public
30 employment and military service does not
equal one year at the time of
31 such employee's return to employment, the
date of membership shall be
32 the first day of the payroll period
coinciding with or following the com-
33 pletion of one combined public employment
and military year of service.
34 Such service shall be granted in accordance
with this section;
35 (c) a period of
retirement under the system or a period of total dis-
36 ability, immediately followed by employment
with a participating em-
37 ployer, shall not count as a break in
continuous employment, except that
38 such periods while not employed shall not
be credited as participating
39 service;
40 (d) termination of
employment, followed by employment with a par-
41 ticipating employer within five years after
such termination, does not
42 constitute a break in continuous employment
if such person has not with-
43 drawn such person's accumulated
contribution. Such period while not
H Sub. for SB 618--Am. by HCW
23
1 employed shall not be credited as
participating service.
2 (3) In determining
the number of years of credited prior service or
3 participating service a fractional
year of six months or more shall be con-
4 sidered as one year and a fractional
year of less than six months shall be
5 disregarded.
6
Sec. 12. K.S.A. 1997 Supp. 74-4914 is hereby amended to
read as
7 follows: 74-4914. (1) The normal
retirement date for a member of the
8 system shall be the first day of the
month coinciding with or following
9 the attainment of age 65 or,
commencing July 1, 1986, age 65 or age 60
10 with the completion of 35 years of
credited service or at any age with the
11 completion of 40 years of credited
service, or commencing July 1, 1993,
12 any alternative normal retirement
date already prescribed by law or age
13 62 with the completion of 10 years of
credited service or the first day of
14 the month coinciding with or following the
date that the total of the
15 number of years of credited service and the
number of years of attained
16 age of the member is equal to or more than
85. In no event shall a normal
17 retirement date for a member be before six
months after the entry date
18 of the participating employer by whom such
member is employed. A
19 member may retire on the normal retirement
date or on the first day of
20 any month thereafter upon the filing with
the office of the retirement
21 system of an application in such form and
manner as the board shall
22 prescribe. Nothing herein shall prevent any
person, member or retirant
23 from being employed, appointed or elected
as an employee, appointee,
24 officer or member of the legislature.
Elected officers may retire from the
25 system on any date on or after the
attainment of the normal retirement
26 date, but no retirement benefits payable
under this act shall be paid until
27 the member has terminated such member's
office.
28 (2) No retirant shall
make contributions to the system or receive serv-
29 ice credit for any service after the date
of retirement.
30 (3) Any member who is an
employee of an affiliating employer pur-
31 suant to K.S.A. 74-4954b and amendments
thereto and has not withdrawn
32 such member's accumulated contributions
from the Kansas police and
33 firemen's retirement system may retire
before such member's normal
34 retirement date on the first day of any
month coinciding with or following
35 the attainment of age 55.
36 (4) Any member may
retire before such member's normal retirement
37 date on the first day of any month
coinciding with or following the at-
38 tainment of age 55 with the completion of
10 years of credited service,
39 but in no event before six months after the
entry date, upon the filing
40 with the office of the retirement system of
an application for retirement
41 in such form and manner as the board shall
prescribe.
42 (5) If a retirant who
retired on or after July 1, 1988, is employed or
43 appointed in or to any position or office
for which compensation for serv-
H Sub. for SB 618--Am. by HCW
24
1 ice is paid, during calendar
years 1988 through 1990, in an amount equal
2 to $6,000 or more in any one
such calendar year; during calendar year
3 1991, in an amount equal to
$9,720 or more; during calendar year 1992,
4 in an amount equal to $10,200
or more; during calendar year 1993, in an
5 amount equal to $10,560 or
more; during calendar year 1994, in an
6 amount equal to $11,160 or
more; or during calendar year 1995 during
7 calendar year 1998, in an amount
equal to $14,500 or more; during cal-
8 endar year 1999, in an amount
equal to $15,500 or more; during calendar
9 year 2000, in an amount equal to
$17,000 or more; during calendar year
10 2001, in an amount equal to $25,000 or
more; or during calendar year
11 2002 and all calendar years
thereafter, in an amount equal to $11,280
12 $30,000 or more in any one such
calendar year, by any participating em-
13 ployer for which such retirant was employed
or appointed during the final
14 two years of such retirant's participation,
such retirant shall not receive
15 any retirement benefit for any month for
which such retirant serves in
16 such position or office. Any retirant
employed by a participating employer
17 shall not make contributions nor receive
additional credit under such
18 system for such service except as provided
by this section. Upon request
19 of the executive secretary of the system,
the secretary of revenue shall
20 provide such information as may be needed
by the executive secretary to
21 carry out the provisions of this act. The
provisions of this subsection shall
22 not apply to retirants employed as
substitute teachers or officers, em-
23 ployees, appointees or members of the
legislature or any other elected
24 officials.
25 (6) For purposes of this
section, any employee of a local governmental
26 unit which has its own pension plan who
becomes an employee of a
27 participating employer as a result of a
merger or consolidation of services
28 provided by local governmental units, which
occurred on January 1, 1994,
29 may count service with such local
governmental unit in determining
30 whether such employee has met the years of
credited service require-
31 ments contained in this section.
32 Sec. 13. K.S.A.
1997 Supp. 74-4916 is hereby amended to read as
33 follows: 74-4916. (1) Upon the death of a
member before retirement, the
34 member's accumulated contributions shall be
paid to the member's ben-
35 eficiary.
36 (2) (a) In the
event that a member dies before retirement as a result
37 of an accident arising out of and in the
course of the member's actual
38 performance of duty in the employ of a
participating employer inde-
39 pendent of all other causes and not as a
result of a willfully negligent or
40 intentional act of the member, an
accidental death benefit shall be pay-
41 able if: (A) A report of the accident, in a
form acceptable to the board, is
42 filed in the office of the executive
secretary of the board within 60 days
43 after the date of the accident causing such
death and an application for
H Sub. for SB 618--Am. by HCW
25
1 such benefit, in such form and manner
as the board shall prescribe, is
2 filed in the office of the executive
secretary of the board within two years
3 of the date of the accident, but the
board may waive such time limits for
4 a reasonable period if in the
judgment of the board the failure to meet
5 these limits was due to lack of
knowledge or incapacity; and (B) the board
6 finds from such evidence as it may
require, to be submitted in such form
7 and manner as it shall prescribe,
that the natural and proximate cause of
8 death was the result of an accident
arising out of and in the course of the
9 member's employment with a
participating employer independent of all
10 other causes at a definite time and place.
Such accidental death benefit
11 shall be a lump-sum amount of $50,000 and
an annual amount of 1/2 of
12 the member's final average salary which
shall accrue from the first day of
13 the month following the date of death and
which shall be payable in
14 monthly installments or as the board may
direct, but, after June 30, 1982,
15 in no case shall the accidental death
benefit be less than $100 per month.
16 The accidental death benefit payments shall
be paid to the surviving
17 spouse of such deceased member, such
payments to continue so long as
18 such surviving spouse lives or if there is
no surviving spouse, or in the
19 case the spouse dies before the youngest
child of such deceased member
20 attains age 18 or before the youngest child
of such deceased member
21 attains age 23 years, if such child is a
full-time student as provided in
22 K.S.A. 74-49,117 and amendments thereto or
if there are one or more
23 children of the member who are totally
disabled and dependent on the
24 member or spouse, then to the child or
children of such member under
25 age 18 or under age 23, if such child or
children are full-time students as
26 provided in K.S.A. 74-49,117 and amendments
thereto and to the child
27 or children of the member who are totally
disabled and dependent on
28 the member or spouse, divided in such
manner as the board in its dis-
29 cretion shall determine, to continue until
the youngest surviving child
30 dies or attains age 18 or attains age 23 if
such child is a full-time student
31 as provided in K.S.A. 79-49,117 and
amendments thereto or, in the case
32 of the child or children who are totally
disabled and dependent on the
33 member or spouse, until death or until no
longer totally disabled, or if
34 there is no surviving spouse or child
eligible for accidental death benefits
35 under this subsection (2) at the time of
the member's death, then to the
36 parent or parents of such member who are
dependent on such member,
37 to continue until the last such parent
dies. All payments due under this
38 subsection (2) to a minor shall be made to
a legally appointed conservator
39 of such minor or totally disabled child as
provided in subsection (7) of
40 K.S.A. 74-4902 and amendments thereto,
except that such payments may
41 be made to any parent who has primary
residential custody of such minor
42 or a legal guardian of such minor.
Commencing on the effective date of
43 this act, any surviving spouse, who was
receiving benefits pursuant to this
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26
1 section and who had such benefits
terminated by reason of such spouse's
2 remarriage, shall be entitled to once
again receive benefits pursuant to
3 this section, except that such
surviving spouse shall not be entitled to
4 recover any benefits not received
after the termination of benefits by
5 reason of such surviving spouse's
remarriage but before the effective date
6 of this act.
7 (b) In
construction of this section of the act there shall be no pre-
8 sumption that the death of the member
was the result of an accident nor
9 shall there be a liberal
interpretation of the law or evidence in favor of
10 the person claiming under this subsection
(2). In the event of the death
11 of a member resulting from a heart,
circulatory or respiratory condition
12 there must be clear and precise evidence
that death was the result of an
13 accident independent of all other causes
which arose out of and in the
14 course of the member's actual performance
of duties in the employ of a
15 participating employer.
16 (c) The annual benefit
under this subsection (2) shall be reduced by
17 any workers compensation benefit payable.
If the workers compensation
18 benefit is paid in a lump sum, the amount
of such reduction shall be
19 calculated on a monthly basis over the
period of time for which workers
20 compensation benefits would have been
payable had such lump sum not
21 been paid. For any recipient already in
receipt of such benefits on the
22 effective date of this act, no change in
the original reduction for workers
23 compensation benefits shall be applicable
to benefits paid prior to July 1,
24 1994. In the event that a member should die
as a result of an accident as
25 described in this subsection (2), all
elections or options previously made
26 by the deceased member shall become void
and of no effect whatsoever
27 and the retirement system shall be liable
only for the accidental death
28 benefit, refund of accumulated
contributions as described in subsection
29 (1) and any insured death benefit that may
be due. The benefit payable
30 under this subsection (2) shall be known
and referred to as the ``accidental
31 death benefit.''
32 (3) (a) Upon the
application of a member, or the member's appoint-
33 ing authority acting for the member, a
member who is in the employ of
34 a participating employer and becomes
totally and permanently disabled
35 for duty in the employ of a participating
employer, by reason of an acci-
36 dent which occurred prior to July 1, 1975,
may be retired by the board
37 if, (A) the board finds the total and
permanent disability to be the natural
38 and proximate result of an accident causing
personal injury or disease
39 independent of all other causes and arising
out of and in the course of
40 the member's actual performance of duties
as an employee of a partici-
41 pating employer; and (B) a report of the
accident, in a form acceptable
42 to the board is filed in the office of the
executive secretary of the board
43 within 200 days after the date of the
accident causing such injury; and
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27
1 (C) such application for retirement
under this provision, in such form and
2 manner as shall be prescribed by the
board, is filed in the office of the
3 executive secretary of the board
within two years of the date of the ac-
4 cident; and (D) after a medical
examination of the member has been
5 made by or under the direction of a
medical physician or physicians or
6 any other practitioner holding a
valid license issued by the Kansas state
7 board of healing arts designated by
the board and the medical physician
8 or physicians or any other
practitioner holding a valid license issued by
9 the Kansas state board of healing
arts report in writing to the board that
10 the member is physically or mentally
totally disabled for duty in the em-
11 ploy of a participating employer and that
such disability will probably be
12 permanent; and (E) the board finds that the
member became perma-
13 nently and totally disabled on a date
certain based on the evidence fur-
14 nished and the professional guidance
obtained and that such disability
15 was not the result of a willfully negligent
or intentional act of the member.
16 If the board shall so retire the applicant,
the member shall receive an-
17 nually an accidental total disability
benefit equal to 1/2 of the member's
18 final average salary which shall accrue
from the first day of the month
19 following the date of such accidental total
and permanent disability as
20 found by the board payable in monthly
installments or as the board may
21 direct.
22 (b) In construction of
this subsection (3) there shall be no presump-
23 tion that the disability of the member was
the result of an accident nor
24 shall there be a liberal interpretation of
the law or evidence in favor of
25 the member claiming under this subsection
(3). In the event of the dis-
26 ability of a member resulting from a heart,
circulatory or respiratory con-
27 dition there must be clear and precise
evidence that disability was the
28 result of an accident independent of all
other causes which arose out of
29 and in the course of the member's actual
performance of duties in the
30 employ of a participating employer.
31 (c) A member will
continue to receive such accidental total disability
32 benefit so long as the member is wholly and
continuously disabled by
33 such injury and prevented thereby from
engaging in any gainful occu-
34 pation or employment for which the member
is reasonably qualified by
35 reason of education, training or
experience. The accidental loss of both
36 hands by actual severance through or above
the wrist joint, or the acci-
37 dental loss of both feet by actual
severance through or above the ankle
38 joint or the entire and irrecoverable
accidental loss of sight of both eyes,
39 or such severance of one hand and one foot,
and such severance of one
40 hand or one foot and such loss of sight of
one eye, shall be deemed
41 accidental total and permanent disability
and accidental total disability
42 benefits shall be paid so long as the
member lives.
43 (d) Any retirant retired
by reason of such accidental total and per-
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28
1 manent disability who has been
receiving benefits under the provisions
2 of this subsection (3) for a period
of five years shall be deemed finally
3 retired and shall not be subject to
further medical examinations, except
4 that if the board of trustees has
reasonable grounds to question whether
5 the retirant remains totally and
permanently disabled, a further medical
6 examination or examinations may be
required. Refusal or neglect to sub-
7 mit to examination shall be
sufficient cause for suspending or discontin-
8 uing the accidental total disability
benefit. If the refusal or neglect con-
9 tinues for a period of one year, all
of the member's rights with respect to
10 such accidental total disability benefit
may be revoked by the board.
11 (e) In the event that a
retirant who is receiving an accidental total
12 disability benefit dies within five years
after the date of the retirant's
13 retirement, an accidental death benefit
shall then be payable as provided
14 in subsection (2) of this section.
15 (f) A member who retires
under the provisions of this subsection (3)
16 shall receive such benefits as provided in
this subsection (3) in lieu of all
17 other retirement benefits provided under
the retirement system except
18 that no member shall be entitled to receive
any payments under this
19 subsection (3) for a period for which
insured disability benefits are re-
20 ceived.
21 (g) The value, as
determined by the board upon recommendation of
22 the actuary, of any workmen's compensation
benefits paid or payable to
23 the recipient of an accidental total
disability benefit shall be deducted
24 from the amount payable under this
section.
25 (h) The benefit payable
under subsection (3) of this section shall be
26 known and referred to as ``accidental total
disability benefit.''
27 Sec. 14. K.S.A.
74-4919 is hereby amended to read as follows: 74-
28 4919. (1) Each participating employer,
beginning with the first payroll for
29 services performed after the entry date,
shall deduct from the compen-
30 sation of each member 4% of such member's
compensation as employee
31 contributions, except that for employees
of the state of Kansas and par-
32 ticipating employers under K.S.A.
74-4931 and amendments thereto on
33 the first payroll period coinciding with
or following the effective date of
34 this act and for employees of
participating employers other than the state
35 of Kansas on the first payroll period of
the fiscal year commencing in
36 calendar year 1999, such contribution
rate shall increase by an amount
37 equal to .25% and shall increase by an
amount equal to .25% each year
38 thereafter for the subsequent three
years for a maximum member contri-
39 bution rate of 5%. Such deductions
shall be remitted quarterly, or as the
40 board may otherwise provide, to the
executive secretary for deposit in the
41 Kansas public employees retirement fund.
Such deductions shall be cred-
42 ited to the members' individual accounts
and interest shall be added an-
43 nually to such accounts.
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29
1 (2) (a) Each
participating employer, pursuant to the provisions of sec-
2 tion 414(h)(2) of the United States
internal revenue code, shall pick up
3 and pay the contributions which would
otherwise be payable by members
4 as prescribed in subsection (1)
commencing with the third quarter of
5 1984. The contributions so picked up
shall be treated as employer con-
6 tributions for purposes of
determining the amounts of federal income
7 taxes to withhold from the member's
compensation.
8 (b) Member
contributions picked up by the employer shall be paid
9 from the same source of funds used
for the payment of compensation to
10 a member. A deduction shall be made from
each member's compensation
11 equal to the amount of the member's
contributions picked up by the
12 employer, provided that such deduction
shall not reduce the member's
13 compensation for purposes of computing
benefits under the system.
14 (c) Member contributions
picked up by the employer shall be remit-
15 ted quarterly, or as the board may
otherwise provide, to the executive
16 secretary for credit to the Kansas public
employees retirement fund. Such
17 contributions shall be credited to a
separate account within the member's
18 individual account so that amounts
contributed by the member com-
19 mencing with the third quarter of 1984 may
be distinguished from the
20 member contributions picked up by the
employer. Interest shall be added
21 annually to members' individual
accounts.
22 Sec. 15. K.S.A.
74-4919i is hereby amended to read as follows: 74-
23 4919i. Any person who becomes a member of
the Kansas public employ-
24 ees retirement system pursuant to
subsection (14) of K.S.A. 74-4902 and
25 amendments thereto,
subsection (4) of K.S.A. 74-4932 and
amendments
26 thereto, K.S.A. 74-4911c
and amendments thereto or sections 18 and
19,
27 74-4911d or 74-4919k, and amendments
thereto, may elect to purchase
28 additional benefits for any service
performed during the period that such
29 person was barred from membership in the
Kansas public employees
30 retirement system, except that no person
shall purchase additional ben-
31 efits for any service which is the basis or
will become the basis for retire-
32 ment credit or benefits under a retirement
annuity under the provisions
33 of K.S.A. 74-4925 and amendments thereto.
As used in this section, ``an-
34 nual compensation'' means the rate
of annual compensation being paid
35 to such member by the participating
employer on the date of application
36 to purchase additional
benefits. At the election of the member the
benefit
37 for each such year of service shall be
equal to either 1% or 1.75% of the
38 final average salary of any such
member. [For any member who
39 elected to purchase service credit as
provided in this section prior
40 to the effective date of this act at the
1% rate, such member may
41 elect to purchase such service credit at
an additional amount of
42 .75% of final average salary of such
member in a lump-sum amount
43 as otherwise provided in this
subsection.] Such member may pur-
H Sub. for SB 618--Am. by HCW
30
1 chase additional benefits by making
application therefor at least three
2 years prior to date
of retirement and by making at an additional
rate of
3 contribution in addition to the
employee's rate of contribution as provided
4 in K.S.A. 74-4919 and amendments
thereto, based upon the member's
5 attained age at the time of
purchase and using actuarial assumptions and
6 tables in use by the retirement
system at the time of such purchase. Such
7 additional rate of contribution
shall commence at the beginning of the
8 quarter following such election
and shall remain in effect until all quarters
9 of such service have been
purchased. Any such member may purchase
10 service as described in this section by
electing to effect such purchase by
11 means of of a single lump-sum
payment in lieu of employee contribution
12 as provided in this section in an
amount equal to the then present value
13 of the benefits being purchased as
determined by the actuary using the
14 member's attained age, annual compensation
at the time of purchase and
15 the actuarial assumptions and tables then
in use by the system. The lump-
16 sum payment shall be made immediately upon
being notified of the
17 amount due. No participating employer shall
pay all or any part of the
18 cost of any additional benefits authorized
to be purchased by a member
19 under this section. The benefit for
each such year of service shall be equal
20 to 1% of the annual compensation at
the time the member purchases
21 such additional
benefits.
22 Sec. 16. K.S.A.
1997 Supp. 74-4919n is hereby amended to read as
23 follows: 74-4919n. Any employee of a
participating employer who is a
24 member of the Kansas public employees
retirement system, who was
25 previously employed in another state in
nonfederal governmental em-
26 ployment and which service otherwise meets
the requirements of an em-
27 ployee as prescribed in subsection (14) of
K.S.A. 74-4902 or subsection
28 (4) of K.S.A. 74-4932 and amendments
thereto, may elect to purchase
29 prior service for such
out-of-state nonfederal governmental employment.
30 At the election of the member, the
benefit for each such year of employ-
31 ment shall be equal to either 1%
or 1.75% of the final average salary of
32 any such member. [For any member who
elected to purchase service
33 credit as provided in this section prior
to the effective date of this
34 act at the 1% rate, such member may
elect to purchase such service
35 credit at an additional amount of .75%
of final average salary of
36 such member in a lump-sum amount as
otherwise provided in this
37 subsection.] Such member may
purchase such prior service by making
38 application therefor prior to date of
retirement at an additional rate of
39 contribution in addition to the employee's
rate of contribution as provided
40 in K.S.A. 74-4919 and amendments thereto,
based upon the member's
41 attained age at the time of purchase and
using actuarial assumptions and
42 tables in use by the retirement system at
the time of such purchase. Such
43 additional rate of contribution shall
commence at the beginning of the
H Sub. for SB 618--Am. by HCW
31
1 quarter following such election and
shall remain in effect until all quarters
2 of such service have been purchased.
Any such member may purchase
3 such prior service
as described in this section by electing to effect such
4 purchase by means of a single
lump-sum payment in lieu of employee
5 contributions as provided in this
section in an amount equal to the then
6 present value of the benefits being
purchased as determined by the ac-
7 tuary using the member's attained
age, annual compensation at the time
8 of purchase and the actuarial
assumptions and tables then in use by this
9 system. The lump-sum payment shall be
made immediately upon being
10 notified of the amount due. No
participating employer shall pay the cost,
11 or any part thereof, of any
prior service authorized to be purchased by a
12 member under this section.
13 Sec. 17. K.S.A.
1997 Supp. 74-4919p is hereby amended to read as
14 follows: 74-4919p. Any member may purchase
prior service for periods
15 of service in the United States peace corps
which commenced on or after
16 January 1, 1962. At the election of the
member, the benefit for each such
17 period of service shall be equal to
either 1% or 1.75% of the final average
18 salary of any such member. [For any
member who elected to pur-
19 chase service credit as provided in this
section prior to the effective
20 date of this act at the 1% rate, such
member may elect to purchase
21 such service credit at an additional
amount of .75% of final average
22 salary of such member in a lump-sum
amount as otherwise pro-
23 vided in this subsection.] Such
member may purchase such prior serv-
24 ice by making application therefor prior to
date of retirement at an ad-
25 ditional rate of contribution in addition
to the employee's rate of
26 contribution as provided in K.S.A. 74-4919
and amendments thereto,
27 based upon the member's attained age at the
time of purchase and using
28 actuarial assumptions and tables in use by
the retirement system at the
29 time of such purchase. Such additional rate
of contribution shall com-
30 mence at the beginning of the quarter
following such election and shall
31 remain in effect until all quarters of such
service have been purchased.
32 Any such member may purchase
prior service as described in this section
33 by electing to effect such purchase by
means of a single lump-sum pay-
34 ment in lieu of employee contributions as
provided in this section in an
35 amount equal to the then present value of
the benefits being purchased
36 as determined by the actuary using the
member's attained age, annual
37 compensation at the time of purchase and
the actuarial assumptions and
38 tables then in use by this system. The
lump-sum payment shall be made
39 immediately upon being notified of the
amount due. No participating
40 employer shall pay the cost, or any part
thereof, of any prior service
41 authorized to be purchased by a member
under this section. The provi-
42 sions of this section shall be effective on
and after July 1, 1996.
43 Sec. 18. K.S.A.
1997 Supp. 74-4919q is hereby amended to read as
H Sub. for SB 618--Am. by HCW
32
1 follows: 74-4919q. Any employee of a
participating employer who is a
2 member of the Kansas public employees
retirement system, who was
3 previously employed as an employee of
the memorial union corporation
4 which is affiliated with Emporia
state university, may elect to purchase
5 prior service for
such employment. At the election of the member, the
6 benefit for each such year of
employment shall be equal to either 1% or
7 1.75% of the final average
salary of any such member. [For any member
8 who elected to purchase service
credit as provided in this section
9 prior to the effective date of
this act at the 1% rate, such member
10 may elect to purchase such service
credit at an additional amount
11 of .75% of final average salary of such
member in a lump-sum
12 amount as otherwise provided in this
subsection.] Such member may
13 purchase such prior
service by making application therefor prior to date
14 of retirement at an additional rate of
contribution in addition to the em-
15 ployee's rate of contribution as provided
in K.S.A. 74-4919 and amend-
16 ments thereto, based upon the member's
attained age at the time of
17 purchase and using actuarial assumptions
and tables in use by the retire-
18 ment system at the time of such purchase.
Such additional rate of con-
19 tribution shall commence at the beginning
of the quarter following such
20 election and shall remain in effect until
all quarters of such service have
21 been purchased. Any such member may
purchase prior service as de-
22 scribed in this section by electing to
effect such purchase by means of a
23 single lump-sum payment in lieu of employee
contributions as provided
24 in this section in an amount equal to the
then present value of the benefits
25 being purchased as determined by the
actuary using the member's at-
26 tained age, annual compensation at the time
of purchase and the actuarial
27 assumptions and tables then in use by this
system. The lump-sum pay-
28 ment shall be made immediately upon being
notified of the amount due.
29 No participating employer shall pay the
cost, or any part thereof, of any
30 prior service authorized
to be purchased by a member under this section.
31 The provisions of this section shall be
effective on and after July 1, 1996.
32 Sec. 19. K.S.A.
1997 Supp. 74-4920 is hereby amended to read as
33 follows: 74-4920. (1) (a) 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
H Sub. for SB 618--Am. by HCW
33
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 years commencing July 1, 1993. Such
certified rate of contribution shall
19 be based on the standards set forth in
subsection (3)(a) of K.S.A. 74-4908
20 and amendments thereto and shall not be
based on any other purpose
21 outside of the needs of the system.
22 (b) (i) For
employers affiliating on and after January 1, 1999, upon
23 the basis of an annual actuarial
valuation and appraisal of the system
24 conducted in the manner provided for in
K.S.A. 74-4908 and amendments
25 thereto, the board shall certify, on or
before July 15 of each year to each
26 such employer an actuarially determined
estimate of the rate of contri-
27 bution which shall be required to be
paid by each such employer to pay
28 all of the liabilities which shall
accrue under the system from and after
29 the entry date as determined by the
board, upon recommendation of the
30 actuary. Such rate shall be termed the
employer's participating service
31 contribution and shall be uniform for
all participating employers. Such
32 additional liability shall be amortized
over a period of 34 years com-
33 mencing on July 1, 1999, by annual
payments that increase 4% for each
34 year remaining in the amortization
period. For all participating employers
35 described in this section, the projected
unit credit actuarial cost method
36 shall be used in annual actuarial
valuations to determine the employer
37 contribution rates that shall be
certified by the board.
38 (ii) The board shall
determine for each such employer separately an
39 amount sufficient to amortize over a
period of not to exceed 34 years
40 commencing July 1, l999, all liabilities
for prior service costs which shall
41 have accrued at the time of entry into
the system. On the basis of such
42 determination the board shall annually
certify to each such employer sep-
43 arately an actuarially determined
estimate of the rate of contribution
H Sub. for SB 618--Am. by HCW
34
1 which shall be required to be paid
by that employer to pay all of the
2 liabilities for such prior service
costs. Such rate shall be termed the em-
3 ployer's prior service
contribution.
4 (2) The division
of the budget and the governor shall include in the
5 budget and in the budget request for
appropriations for personal services
6 the sum required to satisfy the
state's obligation under this act as certified
7 by the board and shall present the
same to the legislature for allowance
8 and appropriation.
9 (3) Each other
participating employer shall appropriate and pay to
10 the system a sum sufficient to satisfy the
obligation under this act as
11 certified by the board.
12 (4) Each participating
employer is hereby authorized to pay the em-
13 ployer's contribution from the same fund
that the compensation for which
14 such contribution is made is paid from or
from any other funds available
15 to it for such purpose. Each political
subdivision, other than an instru-
16 mentality of the state, which is by law
authorized to levy taxes for other
17 purposes, may levy annually at the time of
its levy of taxes, a tax which
18 may be in addition to all other taxes
authorized by law for the purpose of
19 making its contributions under this act
and, in the case of cities and coun-
20 ties, to pay a portion of the principal and
interest on bonds issued under
21 the authority of K.S.A. 12-1774 and
amendments thereto by cities located
22 in the county, which tax, together with any
other fund available, shall be
23 sufficient to enable it to make such
contribution. In lieu of levying the
24 tax authorized in this subsection, any
taxing subdivision may pay such
25 costs from any employee benefits
contribution fund established pursuant
26 to K.S.A. 12-16,102 and amendments thereto.
Each participating em-
27 ployer which is not by law authorized to
levy taxes as described above,
28 but which prepares a budget for its
expenses for the ensuing year and
29 presents the same to a governing body which
is authorized by law to levy
30 taxes as described above, may include in
its budget an amount sufficient
31 to make its contributions under this act
which may be in addition to all
32 other taxes authorized by law. Such
governing body to which the budget
33 is submitted for approval, may levy a tax
sufficient to allow the partici-
34 pating employer to make its contributions
under this act, which tax, to-
35 gether with any other fund available, shall
be sufficient to enable the
36 participating employer to make the
contributions required by this act.
37 (5) The rate of
contribution certified to a participating employer as
38 provided in this section shall apply during
the fiscal year of the partici-
39 pating employer which begins in the second
calendar year following the
40 year of the actuarial valuation. For the
fiscal year commencing in calendar
41 year 1993, the employer rate of
contribution for the state of Kansas and
42 for participating employers under K.S.A.
74-4931 and amendments
43 thereto shall be 3.1% of the amount of
compensation upon which mem-
H Sub. for SB 618--Am. by HCW
35
1 bers contribute during the period.
For the fiscal year commencing in
2 calendar year 1994, the employer rate
of contribution for the state of
3 Kansas and for participating
employers under K.S.A. 74-4931 and amend-
4 ments thereto shall be 3.2% of the
amount of compensation upon which
5 members contribute during the period.
For the fiscal year commencing
6 in calendar year 1994, the employer
rate of contribution for participating
7 employers other than the state of
Kansas shall be 2.2% of the amount of
8 compensation upon which members
contribute during the period. Except
9 as specifically provided in this
section, for the fiscal year commencing in
10 calendar year 1995, the rate of
contribution certified to a participating
11 employer shall in no event exceed such
participating employer's contri-
12 bution rate for the immediately preceding
fiscal year by more than 0.1%
13 of the amount of compensation upon which
members contribute during
14 the period. Except as specifically provided
in this section, for fiscal years
15 commencing in calendar year 1996 and in
each subsequent calendar year,
16 the rate of contribution certified to the
state of Kansas shall in no event
17 exceed the state's contribution rate for
the immediately preceding fiscal
18 year by more than 0.2% of the amount of
compensation upon which
19 members contribute during the period.
For the fiscal year commencing
20 in calendar year 1998, 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 and for the fiscal year
commencing in calendar year 1999,
23 the employer rate of contribution for
participating employers other than
24 the state of Kansas shall be 4.85% of
the amount of compensation upon
25 which members contribute during such
period. Except as specifically pro-
26 vided in this section, for fiscal years
commencing in calendar year 1997
27 and in each subsequent calendar year, the
rate of contribution certified
28 to participating employers other than the
state of Kansas shall in no event
29 exceed such participating employer's
contribution rate for the immedi-
30 ately preceding fiscal year by more than
0.15% of the amount of com-
31 pensation upon which members contribute
during the period. There shall
32 be an employer rate of contribution
certified to the state of Kansas and
33 participating employers under K.S.A.
74-4931 and amendments thereto.
34 There shall be a separate employer rate of
contribution certified to all
35 other participating employers other than
the state of Kansas. The rate of
36 contribution for employers determined
under this section shall in no event
37 be less than the employee contribution
rate as provided in K.S.A. 74-4919
38 and amendments thereto, exclusive of the
amount of the rate of contri-
39 bution for employers attributable to the
provisions of K.S.A. 74-4927 and
40 amendments thereto.
41 (6) The actuarial cost
of any legislation enacted in the 1994 session
42 of the Kansas legislature will be included
in the June 30, 1994, actuarial
43 valuation in determining contribution rates
for participating employers.
H Sub. for SB 618--Am. by HCW
36
1 (7) The
actuarial cost of the provisions of section 44 will be
included
2 in the June 30, 1998, actuarial
valuation in determining contribution rates
3 for participating employers. The
actuarial accrued liability incurred for
4 the provisions of section 44 for
members who retired prior to July 1, 1998,
5 shall be amortized over 15
years.
6 (8) The
board with the advice of the actuary may fix the contribution
7 rates for participating employers
joining the system after one year from
8 the first entry date or for employers
who exercise the option contained
9 in K.S.A. 74-4912 and amendments
thereto at rates different from the
10 rate fixed for employers joining within one
year of the first entry date.
11 (9) For employers
affiliating on and after January 1, 1999, the rates
12 of contribution certified to the
participating employer as provided in this
13 section shall apply during the fiscal
year immediately following such cer-
14 tification, but the rate of contribution
during the first year following the
15 employer's entry date shall be equal to
7% of the amount of compensation
16 on which members contribute during the
year. Any amount of such first
17 year's contribution which may be in
excess of the necessary current service
18 contribution shall be credited by the
board to the respective employer's
19 prior service liability.
20 (8)
(10) Employer contributions shall in no way be limited
by any
21 other act which now or in the future
establishes or limits the compen-
22 sation of any member.
23 (9)
(11) Notwithstanding any provision of law to the
contrary, each
24 participating employer shall remit
quarterly, or as the board may other-
25 wise provide, all employee deductions and
required employer contribu-
26 tions to the executive secretary for credit
to the Kansas public employees
27 retirement fund within 20
three days after the end of the period covered
28 by the remittance or within 25 days
after forms or written instructions
29 from the system were mailed by the
system to such employer, whichever
30 is later by electronic
funds transfer. Remittances of such deductions and
31 contributions received after such date are
delinquent. Delinquent pay-
32 ments due under this subsection shall be
subject to interest at the rate
33 established for interest on judgments under
subsection (a) of K.S.A. 16-
34 204 and amendments thereto. At the request
of the board, delinquent
35 payments which are due or interest owed on
such payments, or both, may
36 be deducted from any other moneys payable
to such employer by any
37 department or agency of the state.
38 Sec. 20. K.S.A.
1997 Supp. 74-4921 is hereby amended to read as
39 follows: 74-4921. (1) There is hereby
created in the state treasury the
40 Kansas public employees retirement fund.
All employee and employer
41 contributions shall be deposited in the
state treasury to be credited to the
42 Kansas public employees retirement fund.
The fund is a trust fund and
43 shall be used solely for the exclusive
purpose of providing benefits to
H Sub. for SB 618--Am. by HCW
37
1 members and member beneficiaries and
defraying reasonable expenses
2 of administering the fund. Investment
income of the fund shall be added
3 or credited to the fund as provided
by law. All benefits payable under the
4 system, refund of contributions and
overpayments, purchases or invest-
5 ments under the law and expenses in
connection with the system unless
6 otherwise provided by law shall be
paid from the fund. The director of
7 accounts and reports is authorized to
draw warrants on the state treasurer
8 and against such fund upon the filing
in the director's office of proper
9 vouchers executed by the chairperson
or the executive secretary of the
10 board. As an alternative, payments from the
fund may be made by credits
11 to the accounts of recipients of payments
in banks, savings and loan as-
12 sociations and credit unions. A payment
shall be so made only upon the
13 written authorization and direction of the
recipient of payment and upon
14 receipt of such authorization such payments
shall be made in accordance
15 therewith. Orders for payment of such
claims may be contained on (a) a
16 letter, memorandum, telegram, computer
printout or similar writing, or
17 (b) any form of communication, other than
voice, which is registered upon
18 magnetic tape, disc or any other medium
designed to capture and contain
19 in durable form conventional signals used
for the electronic communi-
20 cation of messages.
21 (2) The board shall have
the responsibility for the management of
22 the fund and shall discharge the board's
duties with respect to the fund
23 solely in the interests of the members and
beneficiaries of the system for
24 the exclusive purpose of providing benefits
to members and such mem-
25 ber's beneficiaries and defraying
reasonable expenses of administering
26 the fund and shall invest and reinvest
moneys in the fund and acquire,
27 retain, manage, including the exercise of
any voting rights and disposal of
28 investments of the fund within the
limitations and according to the pow-
29 ers, duties and purposes as prescribed by
this section.
30 (3) Moneys in the fund
shall be invested and reinvested to achieve
31 the investment objective which is
preservation of the fund to provide
32 benefits to members and member
beneficiaries, as provided by law and
33 accordingly providing that the moneys are
as productive as possible, sub-
34 ject to the standards set forth in this
act. No moneys in the fund shall be
35 invested or reinvested if the sole or
primary investment objective is for
36 economic development or social purposes or
objectives.
37 (4) In investing and
reinvesting moneys in the fund and in acquiring,
38 retaining, managing and disposing of
investments of the fund, the board
39 shall exercise the judgment, care, skill,
prudence and diligence under the
40 circumstances then prevailing, which
persons of prudence, discretion and
41 intelligence acting in a like capacity and
familiar with such matters would
42 use in the conduct of an enterprise of like
character and with like aims
43 by diversifying the investments of the fund
so as to minimize the risk of
H Sub. for SB 618--Am. by HCW
38
1 large losses, unless under the
circumstances it is clearly prudent not to
2 do so, and not in regard to
speculation but in regard to the permanent
3 disposition of similar funds,
considering the probable income as well as
4 the probable safety of their
capital.
5
(5) Notwithstanding subsection (4): (a) Total investments in
common
6 stock may be made in the amount of up
to 60% of the total book value
7 of the fund;
8 (b) the board may
invest or reinvest moneys of the fund in alternative
9 investments if the following
conditions are satisfied:
10 (i) The total of such
alternative investments does not exceed more
11 than 5% of the total investment assets of
the fund. If the total of such
12 alternative investments exceeds more than
5% of the total investment
13 assets of the fund on the effective date of
this act, the board shall not
14 invest or reinvest any moneys of the fund
in alternative investments until
15 the total of such alternative investments
is less the 5% of the total in-
16 vestment assets of the fund subject to the
5% limitation contained in this
17 subsection. Nothing in this subsection
requires the board to liquidate or
18 sell the system's holdings in any
alternative investment held by the system
19 on the effective date of this act, unless
such liquidation or sale would be
20 in the best interest of the members and
beneficiaries of the system and
21 be prudent under the standards contained in
this section. The 5% limi-
22 tation contained in this section shall not
have been violated if the total of
23 such alternative investments exceeds 5% of
the total investment assets of
24 the fund as a result of market forces
acting to increase the value of such
25 alternative investments relative to the
rest of the system's investments;
26 however, the board shall not invest or
reinvest any moneys of the fund
27 in alternative investments until the total
of such alternative investments
28 is less than 5% of the total investment
assets of the fund subject to the
29 5% limitation contained in this
subsection;
30 (ii) if in addition to
the system, there are at least two other sophisti-
31 cated investors, as defined by section 301
of the securities and exchange
32 act of 1933;
33 (iii) the system's share
in any individual alternative investment is lim-
34 ited to an investment representing not more
than 20% of any such indi-
35 vidual alternative investment;
36 (iv) the system has
received a favorable and appropriate recommen-
37 dation from a qualified, independent expert
in investment management
38 or analysis in that particular type of
alternative investment;
39 (v) the alternative
investment is consistent with the system's invest-
40 ment policies and objectives as provided in
subsection (6);
41 (vi) the individual
alternative investment does not exceed more than
42 2.5% of the total alternative investments
made under this subsection. If
43 the alternative investment is made pursuant
to participation by the system
H Sub. for SB 618--Am. by HCW
39
1 in a multi-investor pool, the 2.5%
limitation contained in this subsection
2 is applied to the underlying
individual assets of such pool and not to
3 investment in the pool itself. The
total of such alternative investments
4 made pursuant to participation by the
system in any one individual multi-
5 investor pool shall not exceed more
than 20% of the total of alternative
6 investments made by the system
pursuant to this subsection. Nothing in
7 this subsection requires the board to
liquidate or sell the system's holdings
8 in any alternative investments made
pursuant to participation by the sys-
9 tem in any one individual
multi-investor pool held by the system on the
10 effective date of this act, unless such
liquidation or sale would be in the
11 best interest of the members and
beneficiaries of the system and be pru-
12 dent under the standards contained in this
section. The 20% limitation
13 contained in this subsection shall not have
been violated if the total of
14 such investment in any one individual
multi-investor pool exceeds 20%
15 of the total alternative investments of the
fund as a result of market forces
16 acting to increase the value of such a
multi-investor pool relative to the
17 rest of the system's alternative
investments; however, the board shall not
18 invest or reinvest any moneys of the fund
in any such individual multi-
19 investor pool until the value of such
individual multi-investor pool is less
20 than 20% of the total alternative
investments of the fund;
21 (vii) the board has
received and considered the investment manager's
22 due diligence findings submitted to the
board as required by subsection
23 (6)(c); and
24 (viii) prior to the time
the alternative investment is made, the system
25 has in place procedures and systems to
ensure that the investment is
26 properly monitored and investment
performance is accurately measured.
27 For purposes of this act,
``alternative investment'' means nontraditional
28 investments outside the established
nationally recognized public stock
29 exchanges and government securities market.
Alternative investments
30 shall include, but not be limited to,
private placements, venture capital,
31 partnerships, limited partnerships and
leveraged buyout partnerships;
32 (c) except as otherwise
provided, the board may invest or reinvest
33 moneys of the fund in real estate
investments if the following conditions
34 are satisfied:
35 (i) If, in addition to
the system, there are at least two other sophis-
36 ticated investors, as defined by section
301 of the securities and exchange
37 act of 1933;
38 (ii) the system's share
in any individual real estate investment is lim-
39 ited to an investment representing not more
than 20% of any such indi-
40 vidual real estate investment;
41 (iii) the system has
received a favorable and appropriate recommen-
42 dation from a qualified, independent expert
in investment management
43 or analysis in that particular type of real
estate investment;
H Sub. for SB 618--Am. by HCW
40
1 (iv) the real
estate investment is consistent with the system's invest-
2 ment policies and objectives as
provided in subsection (6);
3 (v) the total of
such real estate investments made pursuant to partic-
4 ipation by the system in any one
individual multi-investor pool shall not
5 exceed more than 20% of the total of
real estate investments made by
6 the system pursuant to this
subsection. Nothing in this subsection re-
7 quires the board to liquidate or sell
the system's holdings in any real estate
8 investments made pursuant to
participation by the system in any one
9 individual multi-investor pool held
by the system on the effective date of
10 this act, unless such liquidation or sale
would be in the best interest of
11 the members and beneficiaries of the system
and be prudent under the
12 standards contained in this section. The
20% limitation contained in this
13 subsection shall not have been violated if
the total of such investment in
14 any one individual multi-investor pool
exceeds 20% of the total real estate
15 investments of the fund as a result of
market forces acting to increase the
16 value of such a multi-investor pool
relative to the rest of the system's real
17 estate investments; however, the board
shall not invest or reinvest any
18 moneys of the fund in any such individual
multi-investor pool until the
19 value of such individual multi-investor
pool is less than 20% of the total
20 real estate investments of the fund;
21 (vi) the board has
received and considered the investment manager's
22 due diligence findings submitted to the
board as required by subsection
23 (6)(c);
24 (vii) prior to the time
the real estate investment is made, the system
25 has in place procedures and systems to
ensure that the investment is
26 properly monitored and investment
performance is accurately measured;
27 and
28 (viii) the provisions of
this subsection shall not apply to any real estate
29 investment held by the system on July 1,
1992; and
30 (d) the board shall not
invest or reinvest moneys of the fund in any
31 banking institution, savings and loan
association or credit union which
32 positions the system as a shareholder or
owner of such banking institution,
33 savings and loan association or credit
union.
34 (6) Subject to the
objective set forth in subsection (3) and the stan-
35 dards set forth in subsections (4) and (5)
the board shall formulate policies
36 and objectives for the investment and
reinvestment of moneys in the fund
37 and the acquisition, retention, management
and disposition of invest-
38 ments of the fund. Such policies and
objectives shall include:
39 (a) Specific asset
allocation standards and objectives;
40 (b) establishment of
criteria for evaluating the risk versus the poten-
41 tial return on a particular investment;
42 (c) a requirement that
all investment managers submit such man-
43 ager's due diligence findings on each
investment to the board or invest-
H Sub. for SB 618--Am. by HCW
41
1 ment advisory committee for approval
or rejection prior to making any
2 alternative investment;
3 (d) a requirement
that all investment managers shall immediately re-
4 port all instances of default on
investments to the board and provide the
5 board with recommendations and
options, including, but not limited to,
6 curing the default or withdrawal from
the investment; and
7 (e) establishment
of criteria that would be used as a guideline for
8 determining when no additional add-on
investments or reinvestments
9 would be made and when the investment
would be liquidated.
10 The board shall review such
policies and objectives, make changes con-
11 sidered necessary or desirable and readopt
such policies and objectives
12 on an annual basis.
13 (7) The board may enter
into contracts with one or more persons
14 whom the board determines to be qualified,
whereby the persons under-
15 take to perform the functions specified in
subsection (2) to the extent
16 provided in the contract. Performance of
functions under contract so
17 entered into shall be paid pursuant to
rates fixed by the board subject to
18 provisions of appropriation acts and shall
be based on specific contractual
19 fee arrangements. The system shall not pay
or reimburse any expenses of
20 persons contracted with pursuant to this
subsection, except that after
21 approval of the board, the system may pay
approved investment related
22 expenses subject to provisions of
appropriation acts. The board shall re-
23 quire that a person contracted with to
obtain commercial insurance which
24 provides for errors and omissions coverage
for such person in an amount
25 to be specified by the board, provided that
such coverage shall be at least
26 the greater of $500,000 or 1% of the funds
entrusted to such person up
27 to a maximum of $10,000,000. The board
shall require a person con-
28 tracted with to give a fidelity bond in a
penal sum as may be fixed by law
29 or, if not so fixed, as may be fixed by the
board, with corporate surety
30 authorized to do business in this state.
Such persons contracted with the
31 board pursuant to this subsection and any
persons contracted with such
32 persons to perform the functions specified
in subsection (2) shall be
33 deemed to be agents of the board and the
system in the performance of
34 contractual obligations.
35 (8) (a) In the
acquisition or disposition of securities, the board may
36 rely on the written legal opinion of a
reputable bond attorney or attorneys,
37 the written opinion of the attorney of the
investment counselor or man-
38 agers, or the written opinion of the
attorney general certifying the legality
39 of the securities.
40 (b) The board shall
employ or retain qualified investment counsel or
41 counselors or may negotiate with a trust
company to assist and advise in
42 the judicious investment of funds as herein
provided.
43 (9) (a) Except as
provided in subsection (7) and this subsection, the
H Sub. for SB 618--Am. by HCW
42
1 custody of money and securities of
the fund shall remain in the custody
2 of the state treasurer, except that
the board may arrange for the custody
3 of such money and securities as it
considers advisable with one or more
4 member banks or trust companies of
the federal reserve system or with
5 one or more banks in the state of
Kansas, or both, to be held in safe-
6 keeping by the banks or trust
companies for the collection of the principal
7 and interest or other income or of
the proceeds of sale. The services
8 provided by the banks or trust
companies shall be paid pursuant to rates
9 fixed by the board subject to
provisions of appropriation acts.
10 (b) The state treasurer
and the board shall collect the principal and
11 interest or other income of investments or
the proceeds of sale of secu-
12 rities in the custody of the state
treasurer and pay same when so collected
13 into the fund.
14 (c) The principal and
interest or other income or the proceeds of sale
15 of securities as provided in clause (a) of
this subsection (9) shall be re-
16 ported to the state treasurer and the board
and credited to the fund.
17 (10) The board shall
with the advice of the director of accounts and
18 reports establish the requirements and
procedure for reporting any and
19 all activity relating to investment
functions provided for in this act in order
20 to prepare a record monthly of the
investment income and changes made
21 during the preceding month. The record will
reflect a detailed summary
22 of investment, reinvestment, purchase, sale
and exchange transactions
23 and such other information as the board may
consider advisable to reflect
24 a true accounting of the investment
activity of the fund.
25 (11) The board shall
provide for an examination of the investment
26 program annually. The examination shall
include an evaluation of current
27 investment policies and practices and of
specific investments of the fund
28 in relation to the objective set forth in
subsection (3), the standard set
29 forth in subsection (4) and other criteria
as may be appropriate, and rec-
30 ommendations relating to the fund
investment policies and practices and
31 to specific investments of the fund as are
considered necessary or desir-
32 able. The board shall include in its annual
report to the governor as pro-
33 vided in K.S.A. 74-4907, and amendments
thereto, a report or a summary
34 thereof covering the investments of the
fund.
35
(12) (a) The legislative post auditor shall
conduct An annual finan-
36 cial-compliance audit of the system,
including any performance audit sub-
37 jects which are directed to be included
in such annual audit by the leg-
38 islative post audit committee,
performance audits of the system as
39 prescribed by this section
and under the Kansas governmental operations
40 law, and such other audits as are directed
by the legislative post audit
41 committee under the Kansas legislative post
audit act shall be conducted.
42 The annual financial-compliance audit shall
include, but not be limited
43 to, a review of alternative investments of
the system with any estimates
H Sub. for SB 618--Am. by HCW
43
1 of permanent impairments to the value
of such alternative investments
2 reported by the system pursuant to
K.S.A. 74-4907, and amendments
3 thereto.
4 (b) Except
as otherwise provided by In accordance with this
subsec-
5 tion (12), the
legislative post auditor shall conduct annual
financial-com-
6 pliance audit may include one or
more performance audits, audit
subjects
7 as directed by the legislative post
audit committee, which shall include,
8 but not be limited to, one or
more of the following subjects: An evaluation
9 of the performance of
investment managers, an evaluation of the rates of
10 return of investments reported by
the system, an evaluation of the total
11 compensation received for the
planned year by investment managers by
12 individual investment
classification, and a comparison of the system's in-
13 vestment practices and performance
with the investment practices and
14 performance of other state pension
programs by asset type, including all
15 asset types described as
alternative investments in subsection (5)(b).
In
16 considering performance audit subjects
to be included in any financial-
17 compliance audit conducted pursuant to
this subsection (12), the legisla-
18 tive post audit committee shall consider
recommendations and requests
19 for performance audits, relating to the
system or the management thereof,
20 by the joint committee on pensions,
investments and benefits or by any
21 other committee or individual member of
the legislature. Commencing
22 with the performance
financial-compliance audit for the fiscal year ending
23 June 30, 1994 1998,
the legislative post audit committee shall specify
24 which of the if one or
more performance audit subjects listed in
this
25 subsection shall be
included in each performance the
financial-compli-
26 ance audit conducted pursuant to
this subsection (12), in addition to such
27 other subjects as may be directed to be
included in the performance
28 financial-compliance audit by the
legislative post audit committee. Except
29 as otherwise determined by the
legislative post audit committee pursuant
30 to this subsection (12), commencing
with the performance financial-com-
31 pliance audit for the fiscal year
ending June 30, 1994, each of the 1998,
32 one or more performance audit
subjects listed in this subsection
specified
33 by the legislative post audit
committee shall be included at least once
34 every two fiscal years in a
performance financial-compliance audit
con-
35 ducted pursuant to this subsection,
excluding any fiscal year during which
36 the system and the board are
subject to review and evaluation by the
37 legislature under the Kansas
governmental operations accountability law
38 (12). Except as otherwise
directed by the legislative post audit committee,
39 no performance audit shall be
conducted pursuant to this subsection dur-
40 ing any fiscal year when the system
and the board are subject to a per-
41 formance audit and to review and
evaluation under the Kansas govern-
42 mental operations accountability
law. The legislative post audit committee
43 may direct that one or more performance
audit subjects are to be included
H Sub. for SB 618--Am. by HCW
44
1 in a financial-compliance audit
conducted pursuant to this subsection (12)
2 not more than once during a
specific period of three fiscal years, in lieu
3 of once every two fiscal
years.
4 (c) The auditor to
conduct any the financial-compliance audit
re-
5 quired pursuant to this subsection
(12) shall be specified in accordance
6 with K.S.A. 46-1122, and amendments
thereto. If the legislative post audit
7 committee specifies under such
statute that a firm, as defined by K.S.A.
8 46-1112, and amendments thereto, is
to perform all or part of the audit
9 work of such audit, such firm shall
be selected and shall perform such
10 audit work as provided in K.S.A. 46-1123,
and amendments thereto, and
11 K.S.A. 46-1125 through 46-1127, and
amendments thereto. The audits
12 required pursuant to this subsection
(12) shall be conducted in accord-
13 ance with generally accepted governmental
auditing standards. The audits
14 financial-compliance audit required
pursuant to this subsection (12) shall
15 be conducted as soon after the close of the
fiscal year as practicable, but
16 shall be completed no later than six months
after the close of the fiscal
17 year. The post auditor shall annually
compute the reasonably anticipated
18 cost of providing the financial-compliance
audit pursuant to this section
19 subsection (12), subject to review
and approval by the contract audit com-
20 mittee established by K.S.A. 46-1120, and
amendments thereto. Upon
21 such approval, the system shall reimburse
the division of post audit for
22 the amount approved by the contract audit
committee. The furnishing of
23 the financial-compliance audit pursuant to
this section subsection (12)
24 shall be a transaction between the
legislative post auditor and the system
25 and shall be settled in accordance with the
provisions of K.S.A. 75-5516,
26 and amendments thereto.
27 (d) Any internal
assessment or examination of alternative investments
28 of the system performed by any person or
entity employed or retained
29 by the board which evaluates or monitors
the performance of alternative
30 investments shall be reported to the
legislative post auditor so that such
31 report may be reviewed in accordance with
the annual financial-compli-
32 ance audits provided
in conducted pursuant to this subsection
(12)(a) (12).
33 Sec. 21. K.S.A.
74-4924 is hereby amended to read as follows: 74-
34 4924. (1) Any person who shall
knowingly make any false statement, or
35 who shall falsify or permit to be falsified
any record necessary for carrying
36 out the intent of this act for the purpose
of committing fraud, shall be
37 guilty of a misdemeanor, and upon
conviction shall be punished by a fine
38 not exceeding five hundred dollars
($500) or by imprisonment for not
39 exceeding one (1) year
subject to the provisions of K.S.A. 21-3904 and
40 amendments thereto.
41 (2) Should any
error in any records or in any calculation of the Kansas
42 public employees retirement system result
in any member or beneficiary
43 receiving more or less than he would have
been entitled to receive had
H Sub. for SB 618--Am. by HCW
45
1 the records or calculations been
correct, the board shall correct such
2 error, and, as far as practicable,
make future payments in such a manner
3 that the actuarial equivalent of the
benefit to which such member or
4 beneficiary was entitled shall be
paid, and to this end and may recover
5 any overpayments:
Provided,. In the event a member has
withdrawn, all
6 or part of, his
such member's accumulated contributions in a manner not
7 in compliance with the provisions of
this act or the regulations of the
8 system the amount of such withdrawal,
plus interest at a rate specified
9 by the board, shall be deducted from
any amounts, including group in-
10 surance benefits, which shall become due
the member or his such mem-
11 ber's beneficiaries under the
provisions of this act.
12 Sec. 22. K.S.A.
1997 Supp. 74-4927 is hereby amended to read as
13 follows: 74-4927. (1) The board may
establish a plan of death and long-
14 term disability benefits to be paid to the
members of the retirement
15 system as provided by this section. The
long-term disability benefit shall
16 not be payable until the member has been
prevented from carrying out
17 each and every duty pertaining to the
member's employment as a result
18 of sickness or injury for a period of 180
days and the annual benefit shall
19 not exceed an amount equal to 662/3% of the
member's annual rate of
20 compensation on the date such disability
commenced and shall be payable
21 in equal monthly installments. In the event
that a member's compensation
22 is not fixed at an annual rate but on an
hourly, weekly, biweekly, monthly
23 or any other basis than annual, the board
shall prescribe by rule and
24 regulation a formula for establishing a
reasonable rate of annual compen-
25 sation to be used in determining the amount
of the death or long-term
26 disability benefit for such member. Such
plan shall provide that:
27 (A) For deaths occurring
prior to January 1, 1987, the right to receive
28 such death benefit shall cease upon the
member's attainment of age 70
29 or date of retirement whichever first
occurs. The right to receive such
30 long-term disability benefit shall cease
(i) for a member who becomes
31 eligible for such benefit before attaining
age 60, upon the date that such
32 member attains age 65 or the date of such
member's retirement, which-
33 ever first occurs, (ii) for a member who
becomes eligible for such benefit
34 at or after attaining age 60, the date that
such member has received such
35 benefit for a period of five years, upon
the date that such member attains
36 age 70, or upon the date of such member's
retirement, whichever first
37 occurs, (iii) for all disabilities incurred
on or after January 1, 1987, for a
38 member who becomes eligible for such
benefit at or after attaining age
39 70, the date that such member has received
such benefit for a period of
40 12 months or upon the date of such member's
retirement, whichever first
41 occurs, and (iv) for all disabilities
incurred on or after January 1, 1987,
42 for a member who becomes eligible for such
benefit at or after attaining
43 age 75, the date that such member has
received such benefit for a period
H Sub. for SB 618--Am. by HCW
46
1 of six months or upon the date of
such member's retirement, whichever
2 first occurs.
3 (B) Long-term
disability benefit payments shall be in lieu of any ac-
4 cidental total disability benefit
that a member may be eligible to receive
5 under subsection (3) of K.S.A.
74-4916 and amendments thereto. Subject
6 to limitations contained
herein, such plan may provide that any amount
7 which a member receives as a social
security benefit or a disability benefit
8 or compensation from any source by
reason of any employment including,
9 but not limited, to workers
compensation benefits may be deducted from
10 the amount of insured disability benefit
payments under such plan, except
11 that not more than 50% of such workers
compensation benefits shall be
12 deducted therefrom from
such amount of insured disability benefit pay-
13 ments under such plan, nor shall any
amount of any such social security
14 benefit be deducted from such amount of
insured disability benefit pay-
15 ments under such plan when such member
is a quadriplegic. Such insured
16 disability payments shall accrue from the
later of the 181st day of total
17 disability or the first day upon which the
member ceases to draw com-
18 pensation from the employer. If the social
security benefit, workers com-
19 pensation benefit, other income or wages or
other disability benefit by
20 reason of employment, or any part thereof,
is paid in a lump sum, the
21 amount of the reduction shall be calculated
on a monthly basis over the
22 period of time for which the lump sum is
given. In no case shall a member
23 who is entitled to receive insured
disability benefits receive less than $50
24 per month. As used in this section,
``workers compensation benefits''
25 means the total award of disability benefit
payments under the workers
26 compensation act notwithstanding any
payment of attorney fees from
27 such benefits as provided in the workers
compensation act.
28 (C) The plan may include
other provisions relating to qualifications
29 for benefits; schedules and graduation of
benefits; limitations of eligibility
30 for benefits by reason of termination of
employment or membership;
31 conversion privileges; limitations of
eligibility for benefits by reason of
32 leaves of absence, military service or
other interruptions in service; lim-
33 itations on the condition of long-term
disability benefit payment by reason
34 of improved health; requirements for
medical examinations or reports; or
35 any other reasonable provisions as
established by rule and regulation of
36 uniform application adopted by the
board.
37 (D) On and after April
30, 1981, the board may provide under the
38 plan for the continuation of long-term
disability benefit payments to any
39 former member who forfeits the entitlement
to continued service credit
40 under the retirement system or continued
assistance in the purchase of
41 retirement annuities under K.S.A. 74-4925
and amendments thereto and
42 to continued long-term disability benefit
payments and continued death
43 benefit coverage, by reason of the member's
withdrawal of contributions
H Sub. for SB 618--Am. by HCW
47
1 from the retirement system or the
repurchase of retirement annuities
2 which were purchased with assistance
received under K.S.A. 74-4925 and
3 amendments thereto. Such long-term
disability benefit payments may be
4 continued until such individual dies,
attains age 65 or is no longer disa-
5 bled, whichever occurs first.
6 (E) Any visually
impaired person who is in training at and employed
7 by a sheltered workshop for the blind
operated by the secretary of social
8 and rehabilitation services and who
would otherwise be eligible for the
9 insured disability benefit as
described in this section shall not be eligible
10 to receive such benefit due to visual
impairment as such impairment shall
11 be determined to be a preexisting
condition.
12 (2) (A) In the
event that a member becomes eligible for a long-term
13 disability benefit under the plan
authorized by this section such member
14 shall be given participating service credit
for the entire period of such
15 disability. Such member's final average
salary shall be computed in ac-
16 cordance with subsection (17) of K.S.A.
74-4902 and amendments thereto
17 except that the years of participating
service used in such computation
18 shall be the years of salaried
participating service.
19 (B) In the event that a
member eligible for a long-term disability
20 benefit under the plan authorized by this
section shall be disabled for a
21 period of five years or more immediately
preceding retirement, such
22 member's final average salary shall be
adjusted upon retirement by the
23 actuarial salary assumption rates in
existence during such period of dis-
24 ability. Effective July 1, 1993, such
member's final average salary shall be
25 adjusted upon retirement by 5% for each
year of disability after July 1,
26 1993.
27 (C) In the event that a
member eligible for a long-term disability
28 benefit under the plan authorized by this
section shall be disabled for a
29 period of five years or more immediately
preceding death, such member's
30 current annual rate shall be adjusted by
the actuarial salary assumption
31 rates in existence during such period of
disability. Effective July 1, 1993,
32 such member's current annual rate shall be
adjusted upon death by 5%
33 for each year of disability after July 1,
1993.
34 (3) (A) To carry
out the legislative intent to provide, within the funds
35 made available therefor, the broadest
possible coverage for members who
36 are in active employment or involuntarily
absent from such active em-
37 ployment, the plan of death and long-term
disability benefits shall be
38 subject to adjustment from time to time by
the board within the limita-
39 tions of this section. The plan may include
terms and provisions which
40 are consistent with the terms and
provisions of group life and long-term
41 disability policies usually issued to those
employers who employ a large
42 number of employees. The board shall have
the authority to establish and
43 adjust from time to time the procedures for
financing and administering
H Sub. for SB 618--Am. by HCW
48
1 the plan of death and long-term
disability benefits authorized by this
2 section. Either the insured death
benefit or the insured disability benefit
3 or both such benefits may be financed
directly by the system or by one
4 or more insurance companies
authorized and licensed to transact group
5 life and group accident and health
insurance in this state.
6 (B) The board may
contract with one or more insurance companies,
7 which are authorized and licensed to
transact group life and group acci-
8 dent and health insurance in Kansas,
to underwrite or to administer or
9 to both underwrite and administer
either the insured death benefit or the
10 insured disability benefit or both such
benefits. Each such contract with
11 an insurance company under this subsection
shall be entered into on the
12 basis of competitive bids solicited and
administered by the board. Such
13 competitive bids shall be based on
specifications prepared by the board.
14 (i) In the event the
board purchases one or more policies of group
15 insurance from such company or companies to
provide either the insured
16 death benefit or the insured disability
benefit or both such benefits, the
17 board shall have the authority to
subsequently cancel one or more of such
18 policies and, notwithstanding any other
provision of law, to release each
19 company which issued any such canceled
policy from any liability for
20 future benefits under any such policy and
to have the reserves established
21 by such company under any such canceled
policy returned to the system
22 for deposit in the group insurance reserve
of the fund.
23 (ii) In addition, the
board shall have the authority to cancel any policy
24 or policies of group life and long-term
disability insurance in existence
25 on the effective date of this act and,
notwithstanding any other provision
26 of law, to release each company which
issued any such canceled policy
27 from any liability for future benefits
under any such policy and to have
28 the reserves established by such company
under any such canceled policy
29 returned to the system for deposit in the
group insurance reserve of the
30 fund. Notwithstanding any other provision
of law, no premium tax shall
31 be due or payable by any such company or
companies on any such policy
32 or policies purchased by the board nor
shall any brokerage fees or com-
33 missions be paid thereon.
34 (4) (A) The cost of
the plan of death and long-term disability benefits
35 shall be paid from a special reserve hereby
created in the fund, to be
36 known as the group insurance reserve. Each
participating employer shall
37 appropriate and pay to the system in such
manner as the board shall
38 prescribe in addition to the employee and
employer retirement contri-
39 butions an amount equal to .6% of the
amount of compensation on which
40 the members' contributions to the Kansas
public employees retirement
41 system are based for deposit in the group
insurance reserve of the Kansas
42 public employees retirement fund.
43 (B) The director of the
budget and the governor shall include in the
H Sub. for SB 618--Am. by HCW
49
1 budget and in the budget request for
appropriations for personal services
2 a sum to pay the state's contribution
to the group insurance reserve as
3 provided by this section and shall
present the same to the legislature for
4 allowances and appropriation.
5 (C) The provisions
of subsection (4) of K.S.A. 74-4920 and amend-
6 ments thereto shall apply for the
purpose of providing the funds to make
7 the contributions to be deposited to
the group insurance reserve.
8 (D) Any dividend
or retrospective rate credit allowed by an insurance
9 company or companies shall be
credited to the group insurance reserve
10 and the board may take such amounts into
consideration in determining
11 the amounts of the benefits under the plan
authorized by this section.
12 (5) The death benefit
provided under the plan of death and long-
13 term disability benefits authorized by this
section shall be known and
14 referred to as insured death benefit. The
long-term disability benefit pro-
15 vided under the plan of death and long-term
disability benefits authorized
16 by this section shall be known and referred
to as insured disability benefit.
17 (6) The board is hereby
authorized to establish an optional death
18 benefit plan. Except as provided in
subsection (7), such optional death
19 benefit plan shall be made available to all
employees who are covered or
20 may hereafter become covered by the plan of
death and long-term disa-
21 bility benefits authorized by this section.
The cost of the optional death
22 benefit plan shall be paid by the applicant
either by means of a system
23 of payroll deductions or direct payment to
the board. The board shall
24 have the authority and discretion to
establish such terms, conditions, spec-
25 ifications and coverages as it may deem to
be in the best interest of the
26 state of Kansas and its employees which
should include term death ben-
27 efits for the person's period of active
state employment regardless of age,
28 but in no case, on and after January 1,
1989, shall the maximum allowable
29 coverage be less than $200,000. The cost of
the optional death benefit
30 plan shall not be established on such a
basis as to unreasonably discrim-
31 inate against any particular age group. The
board shall have full admin-
32 istrative responsibility, discretion and
authority to establish and continue
33 such optional death benefit plan and the
director of accounts and reports
34 of the department of administration shall
when requested by the board
35 and from funds appropriated or available
for such purpose establish a
36 system to make periodic deductions from
state payrolls to cover the cost
37 of the optional death benefit plan coverage
under the provisions of this
38 subsection (6) and shall remit all
deductions together with appropriate
39 accounting reports to the system. All funds
received by the board,
40 whether in the form of direct payments,
payroll deductions or otherwise,
41 shall be accounted for separately from all
other funds of the retirement
42 system and shall be paid into a special
reserve hereby created in the fund,
43 to be known as the optional death benefit
plan reserve, from which re-
H Sub. for SB 618--Am. by HCW
50
1 serve the board is authorized to make
the appropriate payments and to
2 pay the ongoing costs of
administration of such optional death benefit
3 plan as may be incurred in carrying
out the provisions of this subsection
4 (6).
5 (7) Any employer
other than the state of Kansas which is currently a
6 participating employer of the Kansas
public employees retirement system
7 or is in the process of affiliating
with the Kansas public employees retire-
8 ment system may also elect to
affiliate for the purposes of subsection (6).
9 All such employers shall make
application for affiliation with such system,
10 to be effective on January 1 next following
application. Such optional
11 death benefit plan shall not be available
for employees of employers spec-
12 ified under this subsection until after
July 1, 1988.
13 Sec. 23. K.S.A.
1997 Supp. 74-4936a is hereby amended to read as
14 follows: 74-4936a. Any employee of a
participating employer who is a
15 member of the Kansas public employees
retirement system, who was
16 previously employed in a teaching position
with a public school system of
17 another state, in a foreign teaching
service in an overseas dependents'
18 school, in a recognized teacher exchange
program or in any program
19 where a teacher is chosen by the Kansas
department of education to teach
20 in a foreign country and which service
otherwise meets the requirements
21 of an employee as prescribed in subsection
(14) of K.S.A. 74-4902 or
22 subsection (4) of K.S.A. 74-4932 and
amendments thereto may elect to
23 purchase prior service for
such out-of-state public school or overseas
24 teaching employment. At the election of
the member, the benefit for each
25 such year of employment shall be equal to
either 1% or 1.75% of the final
26 average salary of any such member. [For
any member who elected to
27 purchase service credit as provided in
this section prior to the ef-
28 fective date of this act at the 1% rate,
such member may elect to
29 purchase such service credit at an
additional amount of .75% of
30 final average salary of such member in a
lump-sum amount as oth-
31 erwise provided in this subsection.]
Such member may purchase such
32 prior service by making
application therefor prior to date of retirement
33 at an additional rate of contribution in
addition to the employee's rate of
34 contribution as provided in K.S.A. 74-4919
and amendments thereto,
35 based upon the member's attained age at the
time of purchase and using
36 actuarial assumptions and tables in use by
the retirement system at the
37 time of such purchase. Such additional rate
of contribution shall com-
38 mence at the beginning of the quarter
following such election and shall
39 remain in effect until all quarters of such
service have been purchased.
40 Any such member may purchase such
prior service as described in this
41 section by electing to effect such purchase
by means of a single lump-
42 sum payment in lieu of employee
contributions as provided in this section
43 in an amount equal to the then present
value of the benefits being pur-
H Sub. for SB 618--Am. by HCW
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1 chased as determined by the actuary
using the member's attained age,
2 annual compensation at the time of
purchase and the actuarial assump-
3 tions and tables then in use by this
system. The lump-sum payment shall
4 be made immediately upon being
notified of the amount due. No partic-
5 ipating employer shall pay the cost,
or any part thereof, of any prior
6 service authorized to be purchased by
a member under this section.
7
Sec. 24. K.S.A. 1997 Supp. 74-4939 is hereby
amended to read as
8 follows: 74-4939. (1)
Except as otherwise provided in this section, the
9 provisions of K.S.A.
74-4919 and 74-4920, and amendments thereto, shall
10 apply to employee and employer
contributions and obligations.
11 (2) The
employer contribution rate for participating employers
who
12 are eligible employers as
specified in subsections (1), (2) and (3)
of K.S.A.
13 74-4931 and amendments thereto
shall be as certified by the board. Par-
14 ticipating employers shall
certify to the state board of education before
15 September 15 of each year the
anticipated total compensation to be paid
16 during the next fiscal year to
employees who are or are to become mem-
17 bers. The state board of
education shall transmit the information neces-
18 sary to the division of the
budget and the governor for the fiscal
year
19 commencing in calendar year
1999 who shall include in the budget
and
20 budget document each year
thereafter provisions for the transfer from
21 the state general fund of
sufficient sums to satisfy the participating em-
22 ployer's obligation under this
act. The director of accounts and reports
23 shall make a transfer therefor
to the system each
participating employer
24 quarterly,
at the same time such employee contributions are remitted
by
25 such participating
employers. Such transfer from the general fund
of suf-
26 ficient sums to satisfy the
participating employer's obligation shall not
27 include any adjustments for
individual employee's service in prior periods.
28 The employer's obligation for
such adjustments shall be paid by the par-
29 ticipating employer. Transfers
required by this subsection shall be pro-
30 vided for annually by act of the
legislature.
31
(3) Notwithstanding the provisions
of subsection (11) of K.S.A. 74-
32 4920 and amendments
thereto, participating employers who
are eligible
33 employers as specified
in subsection (4) of
K.S.A. 74-4931 and amend-
34 ments thereto shall
pay monthly
to the system employer contributions at
35 a rate of contribution as
certified by the board.
36
(4) Upon the effective date of this act, the transfers
for the employer's
37 obligation pursuant to subsection
(2) for the quarter commencing on Jan-
38 uary 1, 1987, shall be made on July
1, 1987, together with interest thereon
39 at the rate of 6.72% per annum from
the date the payment would have
40 been made as provided in this
section immediately prior to this amend-
41 ment until the date
paid.
42
Sec. 25. [24.] K.S.A. 1997
Supp. 74-4952 is hereby amended to read
43 as follows: 74-4952. As used in K.S.A.
74-4951 et seq. and amendments
H Sub. for SB 618--Am. by HCW
52
1 thereto:
2 (1) ``Accumulated
contributions'' means the sum of all contributions
3 by a member to the system which shall
be credited to the member's
4 account with interest allowed thereon
after June 30, 1982.
5 (2) ``Disability''
means the total inability to perform permanently the
6 duties of the position of a policeman
or fireman.
7 (3) ``Eligible
employer'' means any city, county, township or other
8 political subdivision of the state
employing one or more employees as
9 firemen or policemen.
10 (4) ``Employee'' means
any policeman or fireman employed by a par-
11 ticipating employer whose employment for
police or fireman purposes is
12 not seasonal or temporary and requires at
least 1,000 hours of work per
13 year.
14 (5) ``Entry date'' means
the date as of which an eligible employer
15 joins the system; the first entry date
pursuant to this act is January 1,
16 1967.
17 (6) ``Final average
salary'' means:
18 (a) For members who are
first hired as an employee, as defined in
19 subsection (4), before July 1, 1993, the
average highest annual compen-
20 sation paid to a member for any three of
the last five years of participating
21 service immediately preceding retirement or
termination of employment,
22 or if participating service is less than
three years, then the average annual
23 compensation paid to the member during the
full period of participating
24 service, or if a member has less than one
calendar year of participating
25 service, then the member's final average
salary shall be computed by
26 multiplying the member's highest monthly
salary received in that year by
27 12;
28 (b) for members who are
first hired as an employee, as defined in
29 subsection (4), on and after July 1, 1993,
the average highest annual salary,
30 as defined in subsection (34) of K.S.A.
74-4902 and amendments thereto,
31 paid to a member for any three of the last
five years of participating
32 service immediately preceding retirement or
termination of employment,
33 or if participating service is less than
three years, then the average annual
34 salary, as defined in subsection (34) of
K.S.A. 74-4902 and amendments
35 thereto, paid to the member during the full
period of participating service,
36 or if a member has less than one calendar
year of participating service,
37 then the member's final average salary
shall be computed by multiplying
38 the member's highest monthly salary
received in that year by 12;
39 (c) for purposes of
subparagraphs (a) and (b) of this subsection, the
40 date that such member is first hired as an
employee for members who
41 are employees of employers that elected to
participate in the system on
42 or after January 1, 1994, shall be the date
that such employee's employer
43 elected to participate in the system;
and
H Sub. for SB 618--Am. by HCW
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1 (d) for any
application to purchase or repurchase service credit for a
2 certain period of service as provided
by law received by the system after
3 May 17, 1994, for any member who will
have contributions deducted from
4 such member's compensation at a
percentage rate equal to two or three
5 times the employee's rate of
contribution or who will have contributions
6 deducted from such member's
compensation at an additional rate of con-
7 tribution, in addition to the
employee's rate of contribution as provided
8 in K.S.A. 74-4919 and amendments
thereto or will begin paying to the
9 system a lump-sum amount for such
member's purchase or repurchase,
10 and such deductions or lump-sum payment
commences after the com-
11 mencement of the first payroll period in
the third quarter, ``final average
12 salary'' shall not include any amount of
compensation or salary which is
13 based on such member's purchase or
repurchase. Any application to pur-
14 chase or repurchase multiple periods of
service shall be treated as mul-
15 tiple applications.
16 (7) ``Retirement
benefit'' means a monthly income or the actuarial
17 equivalent thereof paid in such manner as
specified by the member as
18 provided under the system or as otherwise
allowed to be paid at the
19 discretion of the board, with benefits
accruing from the first day of the
20 month coinciding with or following
retirement and ending on the last day
21 of the month in which death occurs. Upon
proper identification such
22 surviving spouse may negotiate the warrant
issued in the name of the
23 retirant.
24 (8) ``Normal retirement
date'' means the date on or after which a
25 member may retire with eligibility for
retirement benefits for age and
26 service as provided in subsections (1) and
(3) of K.S.A. 74-4957 and
27 amendments thereto;
28 (9) ``Retirement
system'' or ``system'' means the Kansas police and
29 firemen's retirement system as established
by this act and as it may be
30 hereafter amended.
31
(10) ``Service-connected'' means with regard to a death or any
phys-
32 ical or mental disability, any such death
or disability resulting from ex-
33 ternal force, violence or disease
occasioned by an act of duty as a police-
34 man or fireman and, for any member after
five years of credited service,
35 includes there shall be
a rebuttable presumption, that any death or disa-
36 bility resulting from a heart disease or
disease of the lung or respiratory
37 tract or cancer as provided in this
subsection, except that in the event
38 that the member ceases to be a contributing
member except by reason
39 of a service-connected disability for a
period of six months or more and
40 then again becomes a contributing member,
the provision relating to
41 death or disability resulting from a heart
disease, disease of the lung or
42 respiratory tract or cancer as provided in
this subsection shall not apply
43 until such member has again become a
contributing member for a period
H Sub. for SB 618--Am. by HCW
54
1 of not less than two years or unless
clear and precise evidence is presented
2 that the heart disease, disease of
the lung or respiratory tract or cancer
3 as provided in this subsection was in
fact occasioned by an act of duty as
4 a policeman or fireman. If the
retirement system receives evidence to the
5 contrary of such presumption, the
burden of proof shall be on the member
6 or other party to present evidence
that such death or disability was serv-
7 ice-connected. The provisions
of this section relating to the presumption
8 that the death or disability
resulting from cancer is service-connected shall
9 only apply if the condition that
caused the death or disability is a type of
10 cancer which may, in general, result from
exposure to heat, radiation or
11 a known carcinogen.
12 (11) Prior to July 1,
1998, ``fireman'' or ``firemen'' means an employee
13 assigned to the fire department and engaged
in the fighting and extin-
14 guishment of fires and the protection of
life and property therefrom or
15 in support thereof and who is specifically
designated, appointed, com-
16 missioned or styled as such by the
governing body or city manager of the
17 participating employer and certified to the
retirement system as such. On
18 and after July 1, 1998, ``fireman'' or
``firemen'' means an employee as-
19 signed to the fire department whose
principal duties are engagement in
20 the fighting and extinguishment of fires
and the protection of life and
21 property therefrom and who is
specifically designated, appointed, com-
22 missioned or styled as such by the
governing body or city manager of the
23 participating employer and certified to
the retirement system as such.
24 (12) Prior to July 1,
1998, ``police,'' ``policeman'' or ``policemen''
25 means an employee assigned to the police
department and engaged in
26 the enforcement of law and maintenance of
order within the state and its
27 political subdivisions, including sheriffs
and sheriffs' deputies, or in sup-
28 port thereof and who is specifically
designated, appointed, commissioned
29 or styled as such by the governing body or
city manager of the partici-
30 pating employer and certified to the
retirement system as such. On and
31 after July 1, 1998, ``police,''
``policeman'' or ``policemen'' means an em-
32 ployee assigned to the police department
whose principal duties are en-
33 gagement in the enforcement of law and
maintenance of order within the
34 state and its political subdivisions,
including sheriffs and sheriffs' deputies;
35 who has successfully completed the
required course of instruction for law
36 enforcement officers approved by the
Kansas law enforcement training
37 center and is certified pursuant to the
provisions of K.S.A. 74-5607a and
38 amendments thereto; and who is
specifically designated, appointed, com-
39 missioned or styled as such by the
governing body or city manager of the
40 participating employer and certified to
the retirement system as such.
41 [Notwithstanding any other provisions of
this subsection, ``police,''
42 ``policeman'' or ``policemen'' shall
include a city or county correc-
43 tional officer who is specifically
designated, appointed, commis-
H Sub. for SB 618--Am. by HCW
55
1 sioned or styled as such by the
governing body or city manager of
2 the participating employer and
certified to the retirement system
3 as such commencing on July 1,
1998, and ending on June 30, 1999.]
4 (13) Except as
otherwise defined in this act, words and phrases used
5 in K.S.A. 74-4951 et seq. and
amendments thereto, shall have the same
6 meanings ascribed to them as are
defined in K.S.A. 74-4902 and amend-
7 ments thereto.
8
Sec. 26. [25.] K.S.A.
74-4953 is hereby amended to read as follows:
9 74-4953. There is hereby created the
``Kansas police and firemen's re-
10 tirement system'' which shall be a division
of the Kansas public employees
11 retirement system created by K.S.A.
74-4903, and which shall be and
12 amendments thereto and is subject to
the provisions of K.S.A. 74-4901 to
13 74-4926 et seq. and
amendments thereto.
14
Sec. 27. [26.] K.S.A.
74-4954 is hereby amended to read as follows:
15 74-4954. (1) Any eligible employer may join
the system on January 1 of
16 any year on or after January 1, 1967.
Application for affiliation shall be
17 by resolution approved by the governing
body of the eligible employer
18 and shall be submitted to the board of
trustees in such form as the board
19 shall determine, not later than 30 days
prior to the date participation is
20 to begin, except as such time limit is
extended by the board. Such appli-
21 cation may be for participation with regard
to: (a) All policemen or fire-
22 men, or both, who are employed by the
participating employer on or after
23 the employer's entry date; (b) all
policemen or firemen, or both, em-
24 ployed by the participating employer
immediately prior to and on the
25 employer's entry date and all retired
members of all local police or fire
26 pension plans which are maintained and
funded by the employer, as those
27 terms are defined in K.S.A. 12-5001 and
amendments thereto; or (c) all
28 individuals which are referred to in
subsections (a) and (b). The appli-
29 cation shall include a statement of the
group or groups to be covered.
30 Any such application, upon approval by the
board of trustees, shall be
31 irrevocable, except that extension of
coverage to any of the above named
32 employee groups not covered in the
employer's initial application may be
33 obtained by supplemental application to the
board, in such form as may
34 be provided by the board, with such
coverage to be effective on January
35 1 of any succeeding year.
36 (2) Any eligible
employer whose police or firemen, or both, are cov-
37 ered by the Kansas public employees
retirement system may provide for
38 the transfer of such police or firemen, or
both, to the Kansas police and
39 firemen's retirement system in the same
manner as provided in subsec-
40 tion (1). Such transferred employees shall
receive credit only for prior
41 service as police or firemen, or both,
except as otherwise provided in this
42 act. Upon notice of such transfer
authorization, the board of trustees shall
43 transfer to the credit of the employee
under the Kansas police and fire-
H Sub. for SB 618--Am. by HCW
56
1 men's retirement system such amounts
as may be presently credited to
2 the employee's account for
contribution under the Kansas public em-
3 ployees retirement system and an
equivalent amount to the employer's
4 account for contributions for such
employee.
5 (3) Any eligible
employer, prior to the filing of an application for
6 coverage under this system, may
request the board of trustees to submit
7 a proposal for such coverage
including an estimate of the employer's
8 contribution rate necessary to comply
with the actuarial standard of this
9 system. Such eligible employer shall
furnish all necessary data from which
10 such proposal may be prepared, and shall
pay all costs involved.
11 (4) Any fire district
which is a participating employer and has con-
12 solidated with another fire district under
the provisions of K.S.A. 19-3601
13 et seq. and amendments thereto, may
affiliate for prior service coverage
14 for the employees of the fire district
consolidated with the participating
15 employer. The participating employer may
cause the value of any defined
16 benefit pension plan or policy maintained
by the district consolidated with
17 the participating employer to be
transferred to the Kansas police and
18 firemen's retirement system, and any such
amounts transferred shall be
19 applied to the cost of affiliating for
prior service coverage for the em-
20 ployees of the fire district consolidated
with the participating employer.
21 (5) Any participating
employer which affiliated with the system pur-
22 suant to the provisions of K.S.A.
74-4954b and amendments thereto may
23 affiliate with the system pursuant to
the provisions of this section.
24
Sec. 28. [27.] K.S.A.
74-4955a is hereby amended to read as follows:
25 74-4955a. (1) Except as provided in
subsection (4), each member of the
26 system who was appointed or employed prior
to July 1, 1989, may elect
27 to be covered by the provisions of K.S.A.
74-4957a, 74-4958a, 74-4960a,
28 74-4963a and 74-4964a, and amendments
thereto, on the first day of the
29 first payroll period of such member
coinciding with or following the re-
30 ceipt of such election in the office of the
retirement system, only by filing
31 with the board of trustees of the system
prior to January 1, 1990, a written
32 election to be covered by such provisions.
Failure to file such written
33 election shall be presumed to be an
election not to be covered by such
34 provisions. Such election, whether to
become a member or not to become
35 a member, shall be irrevocable.
36 (2) Each person
appointed or employed on or after July 1, 1989, shall
37 be covered by the provisions of K.S.A.
74-4957a, 74-4958a, 74-4960a, 74-
38 4963a and 74-4964a, and amendments
thereto.
39 (3) The provisions of
this section shall be effective on and after July
40 1, 1989.
41 (4) Each member of the
system who was appointed or employed prior
42 to July 1, 1989, and who did not elect to
be covered by the provisions
43 specified in subsection (1) prior to
January 1, 1990, may elect to be cov-
H Sub. for SB 618--Am. by HCW
57
1 ered by such provisions by filing a
written election as provided in sub-
2 section (1) during the period
commencing July 1, 1990, and ending Sep-
3 tember 30, 1990.
4 (5) Except as
provided in this subsection, each member of the system
5 who was appointed or employed
prior to July 1, 1989, and who did not
6 elect to be covered by the
provisions specified in subsection (1) as provided
7 in this section, may elect to be
covered by such provisions by filing a
8 written election as provided in
subsection (1). The provisions of this sub-
9 section shall take effect on and
after the date the system receives a private
10 letter ruling from the internal revenue
service that the provisions of this
11 subsection do not contravene federal
law. The period of such election as
12 provided by this subsection shall
commence on the date of receipt by the
13 system of such private letter ruling,
and shall end 90 days thereafter. Any
14 member who elects as provided by this
subsection shall pay the cost of
15 such election by means of a single
lump-sum payment in an amount equal
16 to the then present value of the
benefits being purchased as determined
17 by the actuary using the member's
attained age, annual compensation at
18 the time of the purchase and the
actuarial assumptions and tables then in
19 use by the system.
20
Sec. 29. [28.] K.S.A. 1997
Supp. 74-4956 is hereby amended to read
21 as follows: 74-4956. (1) Prior service
shall be credited as follows:
22 (a) Each member shall
receive:
23 (i) Full credit for all
employment, whether or not continuous, as ei-
24 ther a policeman or fireman prior to the
entry date with such member's
25 employer who is such member's employer on
the entry date;
26 (ii) full credit for all
employment, whether or not continuous, as ei-
27 ther a police or fireman prior to the entry
date of such police or firemen's
28 employer, with a participating employer, if
such member has at least 20
29 years of credited service; and
30 (iii) for all continuous
employment with the same employer other
31 than either as policeman or fireman,
immediately preceding such service
32 as a policeman or fireman, 12
months 1 month of credit for each
24 2
33 months of service. Any member or retirant
who has been credited with
34 prior service as provided in this section
may apply to the board on such
35 forms as the board prescribes for prior
service credit with a participating
36 employer under the Kansas police and
firemen's retirement system other
37 than such member's entry date employer.
Each member shall receive full
38 credit for all employment as either a
policeman or fireman with such
39 other participating employers and shall
receive 12 months 1 month of
40 credit for each 24
2 months of continuous service with other participating
41 employers for continuous employment
preceding service as a policeman
42 or fireman. Upon receipt of written
verification of such employment from
43 such other participating employer, the
board may grant such additional
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58
1 prior service credit. With respect to
a retirant, the board shall adjust the
2 amount of the retirement benefit
accordingly commencing with the next
3 monthly benefit payment due following
receipt of written verification. In
4 the case of any person other than a
retirant receiving a retirement benefit,
5 such person may make application for
an adjustment in the benefit
6 amount in the same manner as a member
or retirant, and in such case
7 the adjustment in the benefit amount
shall be determined by the board
8 upon the advice of the actuary, and
shall commence with the next monthly
9 benefit payment due following receipt
of written verification, except that
10 no additional prior service credit shall be
granted for any service with
11 another participating employer for which
benefits are being received or
12 will be received. A retirant or any
other person receiving a retirement
13 benefit shall not be entitled to any
retroactive adjustment in the amount
14 of retirement benefit as a result of the
board granting such additional
15 prior service credit.
16 If a member was employed as a
fireman (other than as a volunteer
17 fireman), by a
township which is annexed by a participating employer the
18 member's retirement benefits and death and
disability benefits shall be
19 computed on the basis of credited service.
Continuous service as a fire-
20 man with a township prior to annexation by
a member, who became a
21 member immediately following the
annexation, shall be considered cred-
22 ited service.
23 No such service shall be
considered credited service for the purpose
24 of computing years of service if such
fireman is receiving or will become
25 eligible to receive benefits as a result of
such service with the township.
26 (b) Leaves of absence
and military service shall not be counted as
27 breaks in continuous employment; however,
military service which is pre-
28 ceded within 30 days and followed by
employment with a participating
29 employer shall be credited, except that
after July 1, 1974, not more than
30 five years credit for military service
shall be granted hereunder, but leaves
31 of absence shall not be credited.
32 (2) Participating
service shall be credited as follows: (a) A member
33 shall receive credit for participating
service with a participating employer
34 in accordance with the rules and
regulations established by the board. No
35 more than one calendar quarter of
participating service shall be credited
36 for employment within any one calendar
quarter.
37 (b) Leaves of absence
shall not be counted as a termination of em-
38 ployment provided the member leaves such
member's accumulated con-
39 tributions on deposit with the system and
returns to employment with
40 the employer granting such leave; however,
the period of leave of absence
41 shall not be credited service.
42 (c) Military service
shall not count as a break in continuous employ-
43 ment provided the member leaves such
member's accumulated contri-
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59
1 butions on deposit with the system
and returns to employment within 12
2 months of such member's discharge
from military service without vol-
3 untarily extending such member's
service. Such member shall receive
4 credited service for such period of
military service.
5 (d) Termination of
employment with a participating employer fol-
6 lowed by employment with the same or
another participating employer
7 within two years shall not constitute
a termination of membership pro-
8 vided the member leaves such member's
accumulated contributions on
9 deposit with the system; however, the
period while not employed shall
10 not be credited.
11 (3) In determining the
number of years of credited service for cal-
12 culation of retirement benefits a
fractional year of six months or more of
13 credited service shall be considered as one
year and a fractional year of
14 less than six months of credited service
shall be disregarded.
15
Sec. 30. [29.] K.S.A. 1997
Supp. 74-4957 is hereby amended to read
16 as follows: 74-4957. (1) The normal
retirement date for a member of the
17 system who is appointed or employed prior
to July 1, 1989, and who does
18 not make an election pursuant to K.S.A.
74-4955a and amendments
19 thereto shall be the first day of
the month coinciding with or following
20 the attainment of age 55 and the completion
of 20 years of credited serv-
21 ice. Any member may retire on such member's
normal retirement date
22 or on the first day of any month
thereafter.
23 (2) Early
retirement. Any member who is appointed or employed
24 prior to July 1, 1989, and who does not
make an election pursuant to
25 K.S.A. 74-4955a and amendments thereto may
retire before such mem-
26 ber's normal retirement date on the first
day of any month coinciding
27 with or following the attainment of age 50
and the completion of 20 years
28 of credited service.
29 (3) Notwithstanding the
provisions of subsections (1) and (2) of this
30 section and K.S.A. 74-4955a, 74-4957a,
74-4958a, 74-4960a, 74-4963a and
31 74-4964a and amendments thereto, the normal
retirement date for any
32 member who was, up to the entry date of
such member's employer, cov-
33 ered by a pension system under the
provisions of K.S.A. 13-14a01 to
34 13-14a14, inclusive, or 14-10a01 to
14-10a15, inclusive, and amendments
35 thereto, shall be the first day of the
month coinciding with or following
36 the attainment of age 50 and the completion
of 25 years of credited serv-
37 ice.
38 (4) In no event shall a
member be eligible to retire until such member
39 has been a contributing member of the
system for 12 months of partici-
40 pating service, and shall have given such
member's employer prior notice
41 of retirement.
42 (5) If a retirant who
retired on or after July 1, 1994, is employed,
43 elected or appointed in or to any position
or office for which compensa-
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60
1 tion for service is paid,
during calendar year 1994, in an amount equal
to
2 $11,160 or more; or during
calendar year 1995 during calendar year 1998,
3 in an amount equal to $14,500 or
more; during calendar year 1999, in an
4 amount equal to $15,500 or more;
during calendar year 2000, in an
5 amount equal to $17,000 or more;
during calendar year 2001, in an
6 amount equal to $25,000 or more;
or during calendar year 2002 and all
7 calendar years thereafter, in an
amount equal to $11,280 $30,000 or more
8 in any one such calendar year, by the
same state agency or the same police
9 or fire department of any county,
city, township or special district or the
10 same sheriff's office of a county during
the final two years of such retir-
11 ant's participation, such retirant shall
not receive any retirement benefit
12 for any month for which such retirant
serves in such position or office.
13 Any retirant employed by a participating
employer in the Kansas police
14 and firemen's retirement system shall not
make contributions nor receive
15 additional credit under such system for
such service except as provided
16 by this section. Upon request of the
executive secretary of the system,
17 the secretary of revenue shall provide such
information as may be needed
18 by the executive secretary to carry out the
provisions of this act.
19
Sec. 31. [30.] K.S.A. 1997
Supp. 74-4957a is hereby amended to
20 read as follows: 74-4957a. (1) The normal
retirement date for a member
21 of the system who is appointed or employed
on or after July 1, 1989, or
22 who makes an election pursuant to K.S.A.
74-4955a and amendments
23 thereto to be covered by the provisions of
this act shall be the first day
24 of the month coinciding with or following
the attainment of age 55 and
25 the completion of 20 years of credited
service, age 50 and the completion
26 of 25 years of credited service or age 60
with the completion of 15 years
27 of credited service. Any such member may
retire on such member's nor-
28 mal retirement date or on the first day of
any month thereafter.
29 (2) Any member may
retire before such member's normal retirement
30 date on the first day of any month
coinciding with or following the at-
31 tainment of age 50 and the completion of 20
years of credited service.
32 (3) In no event shall a
member be eligible to retire until such member
33 has been a contributing member of the
system for 12 months of partici-
34 pating service, and shall have given such
member's employer prior notice
35 of retirement.
36 (4) If a retirant who
retired on or after July 1, 1996, is employed,
37 elected or appointed in or to any position
or office for which compensa-
38 tion for service is paid, during calendar
year 1995 1998, in an amount
39 equal to $14,500 or more; during
calendar year 1999, in an amount equal
40 to $15,500 or more; during calendar year
2000, in an amount equal to
41 $17,000 or more; during calendar year
2001, in an amount equal to
42 $25,000 or more; or during calendar year
2002 and all calendar years
43 thereafter, in an amount equal to
$11,280 $30,000 or more in any one
H Sub. for SB 618--Am. by HCW
61
1 such calendar year, by the same state
agency or the same police or fire
2 department of any county, city,
township or special district or the same
3 sheriff's office of a county during
the final two years of such retirant's
4 participation, such retirant shall
not receive any retirement benefit for
5 any month for which such retirant
serves in such position or office. Any
6 retirant employed by a participating
employer in the Kansas police and
7 firemen's retirement system shall not
make contributions nor receive ad-
8 ditional credit under such system for
such service except as provided by
9 this section. Upon request of the
executive secretary of the system, the
10 secretary of revenue shall provide such
information as may be needed by
11 the executive secretary to carry out the
provisions of this act.
12 (5) The provisions of
this section shall be effective on and after July
13 1, 1989, and shall apply only to members
who were appointed or em-
14 ployed prior to July 1, 1989, and who made
an election pursuant to K.S.A.
15 74-4955a and amendments thereto; and
persons appointed or employed
16 on or after July 1, 1989.
17
Sec. 32. [31.] K.S.A. 1997
Supp. 74-4958 is hereby amended to read
18 as follows: 74-4958. (1) Any member who
retires on or after July 1, 1993,
19 shall be entitled to receive an age and
service retirement benefit equal
20 to 2.5% of such member's final average
salary multiplied by the number
21 of years of credited service except that in
no case shall such retirement
22 benefit exceed 80% of such member's final
average salary.
23 (2) Any member who is
appointed or employed prior to July 1, 1989,
24 who does not make an election pursuant to
K.S.A. 74-4955a and amend-
25 ments thereto and who retires before such
member's normal retirement
26 date shall receive an early retirement
benefit equal to the annual retire-
27 ment benefit payable had the member retired
on the normal retirement
28 date reduced by an amount equal to the
product of (A) such annual re-
29 tirement benefit payable had the member
retired on the normal retire-
30 ment date, multiplied by (B) the product of
.4% multiplied by the number
31 of months difference, to the nearest whole
month, between the member's
32 attained age at the time of retirement and
age 55.
33 (3) Upon the death after
retirement of a member who was covered,
34 up to the entry date of the member's
employer, by a pension system under
35 the provisions of K.S.A. 12-5001 to
12-5007, inclusive, and amendments
36 thereto, or K.S.A. 13-14a01 to 13-14a14,
inclusive, and amendments
37 thereto, or K.S.A. 14-10a01 to 14-10a15,
inclusive, and amendments
38 thereto, and who had not elected to retire
under one of the options pro-
39 vided under K.S.A. 74-4964 and amendments
thereto, the member's
40 spouse, if such spouse was the member's
lawfully wedded spouse for a
41 period of not less than one year at the
time of the member's retirement
42 or if such spouse had been the member's
lawfully wedded spouse for at
43 least three years after the time of the
member's retirement, shall receive
H Sub. for SB 618--Am. by HCW
62
1 a lump-sum benefit equal to 1/2 the
member's final average salary at the
2 time of the member's retirement and
shall receive an annual spouse's
3 benefit equal to 75% of the member's
retirement benefit payable in
4 monthly installments, to accrue from
the last day of the month following
5 the member's date of death and ending
on the last day of the month in
6 which the spouse dies. Commencing on
the effective date of this act, any
7 surviving spouse, who was receiving
benefits pursuant to this section and
8 who had such benefits terminated by
reason of such spouse's remarriage,
9 shall be entitled to once again
receive benefits pursuant to this section,
10 except that such surviving spouse shall not
be entitled to recover any
11 benefits not received after the termination
of benefits by reason of such
12 surviving spouse's remarriage but before
the effective date of this act. If
13 there is no surviving spouse, or if after
the death of the spouse there
14 remain one or more children under the age
of 18 years or one or more
15 children under the age of 23 years who is a
full-time student as provided
16 in K.S.A. 74-49,117 and amendments thereto,
the annual spouse's benefit
17 shall be payable in equal shares to such
children and each child's share
18 shall end on the last day of the month in
which such child attains the age
19 of 18 years or dies, whichever occurs
earlier or in which such child attains
20 the age of 23 years if such child is a
full-time student as provided in K.S.A.
21 74-49,117 and amendments thereto.
Commencing on the effective date
22 of this act, any child who was receiving
benefits pursuant to this section
23 and who had such benefits terminated by
reason of such child's marriage,
24 shall be entitled to once again receive
benefits pursuant to this section
25 subject to the limitations contained in
this section, except that such child
26 shall not be entitled to recover any
benefits not received after the ter-
27 mination of benefits by reason of such
child's marriage but before the
28 effective date of this act. All payments
due under this section to a minor
29 shall be made to a legally appointed
conservator of such minor as provided
30 in subsection (7) of K.S.A. 74-4902 and
amendments thereto, except that
31 such payments may be made to any parent
who has primary residential
32 custody of such minor or a legal
guardian of such minor. No person shall
33 be entitled to receive more than one
benefit under the provisions of this
34 subsection. Any person who otherwise meets
the qualifications to receive
35 more than one benefit under this subsection
shall elect the benefit such
36 person shall receive.
37 (4) Upon the death after
retirement of a member who had not elected
38 to retire under one of the options provided
under K.S.A. 74-4964 and
39 amendments thereto, such member's
beneficiary shall receive an amount
40 equal to the excess, if any, of such
member's accumulated contributions
41 over the sum of all retirement benefit
payments made.
42 (5) The provisions of
law in effect on the retirement date of a member
43 under the system shall govern the
retirement benefit payable to the re-
H Sub. for SB 618--Am. by HCW
63
1 tirant, any joint annuitant and any
beneficiary.
2
Sec. 33. [32.] K.S.A. 1997
Supp. 74-4958a is hereby amended to
3 read as follows: 74-4958a. (1) Any
member who retires on or after July
4 1, 1993, shall be entitled to receive
an age and service retirement benefit
5 equal to 2.5% of such member's final
average salary multiplied by the
6 number of years of credited service
except that in no case shall such
7 retirement benefit exceed 80% of such
member's final average salary.
8 (2) Any member who
retires before such member's normal retire-
9 ment date shall receive an early
retirement benefit equal to the annual
10 retirement benefit payable had the member
retired on the normal retire-
11 ment date reduced by an amount equal to the
product of (A) such annual
12 retirement benefit payable had the member
retired on the normal retire-
13 ment date, multiplied by (B) the product of
.4% multiplied by the number
14 of months difference, to the nearest whole
month, between the member's
15 attained age at the time of retirement and
age 55.
16 (3) Upon the death after
retirement of a member who was covered,
17 up to the entry date of the member's
employer, by a pension system under
18 the provisions of K.S.A. 12-5001 to
12-5007, inclusive, and amendments
19 thereto, or K.S.A. 13-14a01 to 13-14a14,
inclusive, and amendments
20 thereto, or K.S.A. 14-10a01 to 14-10a15,
inclusive, and amendments
21 thereto, and who had not elected to retire
under one of the options pro-
22 vided under K.S.A. 74-4964 and amendments
thereto, the member's
23 spouse, if such spouse was the member's
lawfully wedded spouse for a
24 period of not less than one year at the
time of the member's retirement
25 or if such spouse had been the member's
lawfully wedded spouse for at
26 least three years after the time of the
member's retirement, shall receive
27 a lump-sum benefit equal to 1/2 the
member's final average salary at the
28 time of the member's retirement and shall
receive an annual spouse's
29 benefit equal to 75% of the member's
retirement benefit payable in
30 monthly installments, to accrue from the
first day of the month following
31 the member's date of death and ending on
the last day of the month in
32 which the spouse dies. Commencing on the
effective date of this act, any
33 surviving spouse, who was receiving
benefits pursuant to this section and
34 who had such benefits terminated by reason
of such spouse's remarriage,
35 shall be entitled to once again receive
benefits pursuant to this section,
36 except that such surviving spouse shall not
be entitled to recover any
37 benefits not received after the termination
of benefits by reason of such
38 surviving spouse's remarriage but before
the effective date of this act. If
39 there is no surviving spouse, or if after
the death of the spouse there
40 remain one or more children under the age
of 18 years or one or more
41 children under the age of 23 years who is a
full-time student as provided
42 in K.S.A. 74-49,117 and amendments thereto,
the annual spouse's benefit
43 shall be payable in equal shares to such
children and each child's share
H Sub. for SB 618--Am. by HCW
64
1 shall end on the last day of the
month in which such child attains the age
2 of 18 years or dies, whichever occurs
earlier or in which such child attains
3 the age of 23 years, if such child is
a full-time student as provided in
4 K.S.A. 74-49,117 and amendments
thereto. Commencing on the effective
5 date of this act, any child who was
receiving benefits pursuant to this
6 section and who had such benefits
terminated by reason of such child's
7 marriage, shall be entitled to once
again receive benefits pursuant to this
8 section subject to the limitations
contained in this section, except that
9 such child shall not be entitled to
recover any benefits not received after
10 the termination of benefits by reason of
such child's marriage but before
11 the effective date of this act. All
payments due under this section to a
12 minor shall be made to a legally appointed
conservator of such minor as
13 provided in subsection (7) of K.S.A.
74-4902 and amendments thereto,
14 except that such payments may be made to
any parent who has primary
15 residential custody of such minor or a
legal guardian of such minor. No
16 person shall be entitled to receive more
than one benefit under the pro-
17 visions of this subsection. Any person who
otherwise meets the qualifi-
18 cations to receive more than one benefit
under this subsection shall elect
19 the benefit such person shall receive.
20 (4) Upon the death after
retirement of a member who had not elected
21 to retire under one of the options provided
under K.S.A. 74-4964 and
22 amendments thereto, such member's
beneficiary shall receive an amount
23 equal to the excess, if any, of such
member's accumulated contributions
24 over the sum of all retirement benefit
payments made.
25 (5) The provisions of
this section shall be effective on and after July
26 1, 1989 and shall apply only to members who
were appointed or employed
27 prior to July 1, 1989, and who made an
election pursuant to K.S.A. 74-
28 4955a and amendments thereto; and persons
appointed or employed on
29 or after July 1, 1989.
30 (6) The provisions of
law in effect on the retirement date of a member
31 under the system shall govern the
retirement benefit payable to the re-
32 tirant, any joint annuitant and any
beneficiary.
33
Sec. 34. [33.] K.S.A. 1997
Supp. 74-4959 is hereby amended to read
34 as follows: 74-4959. (1) Upon the death
from service-connected causes
35 as defined in this act, of an active
contributing member prior to retire-
36 ment, the following benefits shall be
payable if a report of the event, in
37 a form acceptable to the board, is filed in
the office of the executive
38 secretary of the board within 200 days
after the date of the act of duty
39 causing such death and an application for
such benefits, in such form and
40 manner as prescribed by the board, is filed
in the office of the executive
41 secretary of the board within two years of
the date of death, but the board
42 may waive such time limits for a reasonable
period if in the judgment of
43 the board the failure to meet these limits
was due to lack of knowledge
H Sub. for SB 618--Am. by HCW
65
1 or incapacity:
2 (a) To the
member's spouse, if lawfully wedded to the member at the
3 time of the member's death, an annual
spouse's benefit equal to 50% of
4 the member's final average salary,
which shall accrue from the first day
5 of the month coinciding with or
following the member's death and shall
6 end on the first day of the month in
which the spouse's death occurs.
7 Commencing on the effective date of
this act, any surviving spouse, who
8 was receiving benefits pursuant to
this section and who had such benefits
9 terminated by reason of such spouse's
remarriage, shall be entitled to
10 once again receive benefits pursuant to
this section, except that such
11 surviving spouse shall not be entitled to
recover any benefits not received
12 after the termination of benefits by reason
of such surviving spouse's
13 remarriage but before the effective date of
this act.
14 (b) To the member's
children under the age of 18 years or under the
15 age of 23 years, if such children are
full-time students as provided in
16 K.S.A. 74-49,117 and amendments thereto an
annual children's benefit
17 equal to 10% of the member's final average
salary for each such child,
18 which shall accrue from the first day of
the month coinciding with or
19 following the member's death and shall end
on the last day of the month
20 in which such child attains the age of 18
years or dies, whichever occurs
21 earlier or in which such child attains the
age of 23 years, if such child is
22 a full-time student as provided in K.S.A.
74-49,117 and amendments
23 thereto, except that if there is no
eligible spouse, or if upon the death of
24 the spouse there remain one or more
children under the age of 18 years
25 or under the age of 23 years, if such
children are full-time students as
26 provided in K.S.A. 74-49,117 and amendments
thereto, the annual
27 spouse's benefit shall be paid in equal
shares to such children and each
28 child's share shall end on the last day of
the month in which such child
29 attains the age of 18 years or dies,
whichever occurs earlier or in which
30 such child attains the age of 23 years, if
such child is a full-time student
31 as provided in K.S.A. 74-49,117 and
amendments thereto. Commencing
32 on the effective date of this act, any
child who was receiving benefits
33 pursuant to this section and who had such
benefits terminated by reason
34 of such child's marriage, shall be entitled
to once again receive benefits
35 pursuant to this section subject to the
limitations contained in this section,
36 except that such child shall not be
entitled to recover any benefits not
37 received after the termination of benefits
by reason of such child's mar-
38 riage but before the effective date of this
act.
39 (c) In no case shall
benefits payable under the provisions of para-
40 graphs (a) and (b) of this subsection (1)
exceed 75% of the member's
41 final average salary.
42 (2) Upon the death from
causes not service-connected of an active
43 contributing member prior to retirement,
the member's spouse, if law-
H Sub. for SB 618--Am. by HCW
66
1 fully wedded to the member at the
time of the member's death, shall
2 receive immediately a lump-sum
benefit equal to 100% of the member's
3 final average salary and shall be
entitled to receive an annual death benefit
4 equal to the member's retirement
benefit calculated as if the member
5 had retired on the member's normal
retirement date, but based upon the
6 member's final average salary and
years of credited service on the date
7 of death but not to exceed the amount
of the annual spouse's benefit
8 provided in paragraph (a) of
subsection (1). An application for such ben-
9 efits in such form and manner as
prescribed by the board must be filed
10 in the office of the executive secretary of
the board within two years of
11 the date of death, but the board may waive
such time limit for a reason-
12 able period if in the judgment of the board
the failure to meet this limit
13 was due to the lack of knowledge or
incapacity. On and after July 1, 1993,
14 the annual spouse's benefit under this
subsection (2) shall accrue from
15 the first day of the month coinciding with
or following the member's
16 death and shall continue until the spouse's
death. Commencing on the
17 effective date of this act, any surviving
spouse, who was receiving benefits
18 pursuant to this section and who had such
benefits terminated by reason
19 of such spouse's remarriage, shall be
entitled to once again receive ben-
20 efits pursuant to this section, except that
such surviving spouse shall not
21 be entitled to recover any benefits not
received after the termination of
22 benefits by reason of such surviving
spouse's remarriage but before the
23 effective date of this act. If there is no
eligible spouse or if after the death
24 of the spouse there remain one or more
children of the member under
25 the age of 18 years or one or more children
of the member under the
26 age of 23 years, if such children are
full-time students as provided in
27 K.S.A. 74-49,117 and amendments thereto,
the spouse's benefit shall be
28 payable in equal shares to such children
and each child's share shall end
29 on the last day of the month in which such
child attains the age of 18
30 years or dies, whichever occurs earlier or
in which such child attains the
31 age of 23 years, if such child is a
full-time student as provided in K.S.A.
32 74-49,117 and amendments thereto.
Commencing on the effective date
33 of this act, any child who was receiving
benefits pursuant to this section
34 and who had such benefits terminated by
reason of such child's marriage,
35 shall be entitled to once again receive
benefits pursuant to this section
36 subject to the limitations contained in
this section, except that such child
37 shall not be entitled to recover any
benefits not received after the ter-
38 mination of benefits by reason of such
child's marriage but before the
39 effective date of this act.
40 (3) Upon the death of a
member prior to retirement, if no benefits
41 are payable under the provisions of
subsection (1) or (2), the sum of the
42 member's accumulated contributions shall be
paid to the member's ben-
43 eficiary.
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67
1 (4) All payments
due under this section to a minor shall be made to
2 a legally appointed conservator of
such minor as provided in subsection
3 (7) of K.S.A. 74-4902 and amendments
thereto, except that such pay-
4 ments may be made to any parent
who has primary residential custody
5 of such minor or a legal guardian
of such minor.
6
Sec. 35. [34.] K.S.A. 1997
Supp. 74-4960 is hereby amended to read
7 as follows: 74-4960. (1) If any
active contributing member becomes totally
8 and permanently disabled due to
service-connected causes as defined in
9 subsection (10) of K.S.A. 74-4952 and
amendments thereto, such mem-
10 ber shall be retired and the following
benefits shall become payable and
11 shall continue until the member's death or
until the member recovers
12 from the disability if: A report of the
event in a form acceptable to the
13 board is filed in the office of the
executive secretary of the board within
14 220 days after the date of the event or act
of duty causing such disability;
15 and an application for such benefit, in
such form and manner as the board
16 prescribes, is filed by the member or the
member's authorized represen-
17 tative in the office of the executive
secretary of the board within two years
18 of the date of disability:
19 (a) On and after July 1,
1993, the member shall receive a retirement
20 benefit equal to 50% of the member's final
average salary or, if the mem-
21 ber has no dependents, as defined in
subsection (1)(b), the retirement
22 benefit the member would have been entitled
to as provided under K.S.A.
23 74-4958 and amendments thereto had the
member retired, whichever is
24 greater. Such benefit shall accrue from the
day upon which the member
25 ceases to draw compensation.
26 (b) Each of the member's
children under the age of 18 years or each
27 of the member's children under the age of
23 years who is a full-time
28 student as provided in K.S.A. 74-49,117 and
amendments thereto shall
29 receive an annual benefit equal to 10% of
the member's final average
30 salary. Such benefit shall accrue from the
day upon which the member
31 ceases to draw compensation and shall end
on the last day of the month
32 in which each such child or children shall
attain the age of 18 years or
33 die, whichever occurs earlier or in which
such children attain the age of
34 23 years, if such child is a full-time
student as provided in K.S.A. 74-
35 49,117 and amendments thereto. Commencing
on the effective date of
36 this act, any child who was receiving
benefits pursuant to this section and
37 who had such benefits terminated by reason
of such child's marriage,
38 shall be entitled to once again receive
benefits pursuant to this section
39 subject to the limitations contained in
this section, except that such child
40 shall not be entitled to recover any
benefits not received after the ter-
41 mination of benefits by reason of such
child's marriage but before the
42 effective date of this act.
43 (c) In no case shall the
total of the benefits payable under paragraphs
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68
1 (a) and (b) of this subsection (1) be
in excess of 75% of the member's
2 final average salary.
3 (d) In the event a
member who is retired under subsection (1) dies
4 within two years after the date of
such retirement and no benefits are
5 payable under subsection (3) of
K.S.A. 74-4958 and amendments thereto,
6 then benefits may be payable under
subsection (1) of K.S.A. 74-4959 and
7 amendments thereto.
8 (e) In the event a
member who is retired under subsection (1) dies
9 more than two years after the date of
such retirement, and the proximate
10 cause of such death is the
service-connected cause from which the disa-
11 bility resulted and no benefits are payable
under subsection (3) of K.S.A.
12 74-4958 and amendments thereto, then
benefits may be payable under
13 subsection (1) of K.S.A. 74-4959 and
amendments thereto. The provisions
14 of this paragraph (e) of this subsection
(1) shall apply in all cases of such
15 members who die after June 30, 1978.
16 (f) In the event a
member who is retired under subsection (1) dies
17 after the date of such retirement, and no
benefits are payable under
18 paragraphs (d) and (e) of subsection (1),
nor under subsection (3) of
19 K.S.A. 74-4958 and amendments thereto, the
following benefits shall be
20 payable:
21 (i) To the member's
spouse, if lawfully wedded to the member at the
22 time of the member's death, a lump-sum
benefit equal to 50% of the
23 member's final average salary at the time
of the member's retirement.
24 (ii) To the member's
spouse, if lawfully wedded to the member at
25 the time of the member's death, an annual
benefit equal to 50% of the
26 member's retirement benefit payable in
monthly installments, to accrue
27 from the first day of the month following
the member's date of death and
28 ending on the last day of the month in
which the spouse dies. Com-
29 mencing on the effective date of this act,
any surviving spouse, who was
30 receiving benefits pursuant to this section
and who had such benefits
31 terminated by reason of such spouse's
remarriage, shall be entitled to
32 once again receive benefits pursuant to
this section, except that such
33 surviving spouse shall not be entitled to
recover any benefits not received
34 after the termination of benefits by reason
of such surviving spouse's
35 remarriage but before the effective date of
this act. If there is no surviving
36 spouse, or if after the death of the spouse
there remain one or more
37 children under the age of 18 years or one
or more children under the age
38 of 23 years who is a full-time student as
provided in K.S.A. 74-49,117 and
39 amendments thereto, the annual spouse's
benefit shall be payable in equal
40 shares to such children and each child's
share shall end on the last day of
41 the month in which such child attains the
age of 18 years or dies, which-
42 ever occurs earlier or in which such child
attains the age of 23 years, if
43 such child is a full-time student as
provided in K.S.A. 74-49,117 and
H Sub. for SB 618--Am. by HCW
69
1 amendments thereto. Commencing on the
effective date of this act, any
2 child who was receiving benefits
pursuant to this section and who had
3 such benefits terminated by reason of
such child's marriage, shall be en-
4 titled to once again receive benefits
pursuant to this section subject to
5 the limitations contained in this
section, except that such child shall not
6 be entitled to recover any benefits
not received after the termination of
7 benefits by reason of such child's
marriage but before the effective date
8 of this act.
9 The provisions of
paragraph (f) of subsection (1) shall apply in all cases
10 of such members who die after December 1,
1984.
11 (2) (a) If any
active contributing member, prior to such member's
12 normal retirement, becomes totally and
permanently disabled for a period
13 of 180 days from causes not
service-connected, and not as the result of a
14 willfully negligent or intentional act of
the member, such member shall
15 be retired and the following benefit shall
become payable and shall con-
16 tinue until the member's death or until the
member recovers from such
17 disability, whichever occurs first, if a
report of the disability in a form
18 acceptable to the board is filed in the
office of the executive secretary of
19 the board within 220 days after the date of
the commencement of such
20 disability and if an application for such
benefit in such form and manner
21 as the board shall prescribe is filed in
the office of the executive secretary
22 of the board within two years of the date
of disability:
23 A retirement benefit equal to
2.5% of the member's final average salary
24 multiplied by the number of years of
credited service or the retirement
25 benefit the member would have been entitled
to as provided under K.S.A.
26 74-4958 and amendments thereto had the
member retired, whichever is
27 greater, multiplied by the number of years
of credited service except that
28 such retirement benefit shall be at least
equal to 25% of the member's
29 final average salary but shall not exceed
the amount of the retirement
30 benefit provided in paragraph (a) of
subsection (1). Such benefit shall not
31 become payable until satisfactory evidence
shall be presented to the board
32 that the member is and has been totally and
permanently disabled for a
33 period of 180 days, but benefits shall
accrue from the day upon which
34 the member ceases to draw compensation.
35 (b) In the event a
member who is retired under subsection (2) dies
36 after the date of such retirement, and no
benefits are payable under
37 subsection (3) of K.S.A. 74-4958 and
amendments thereto, the following
38 benefits shall be payable:
39 (i) To the member's
spouse, if lawfully wedded to the member at the
40 time of the member's death, a lump-sum
benefit equal to 50% of the
41 member's final average salary at the time
of the member's retirement.
42 (ii) To the member's
spouse, if lawfully wedded to the member at
43 the time of the member's death, an annual
benefit equal to 50% of the
H Sub. for SB 618--Am. by HCW
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1 member's retirement benefit payable
in monthly installments, to accrue
2 from the first day of the month
following the member's date of death and
3 ending on the last day of the month
in which the spouse dies. Com-
4 mencing on the effective date of this
act, any surviving spouse, who was
5 receiving benefits pursuant to this
section and who had such benefits
6 terminated by reason of such spouse's
remarriage, shall be entitled to
7 once again receive benefits pursuant
to this section, except that such
8 surviving spouse shall not be
entitled to recover any benefits not received
9 after the termination of benefits by
reason of such surviving spouse's
10 remarriage but before the effective date of
this act. If there is no surviving
11 spouse, or if after the death of the spouse
there remain one or more
12 children under the age of 18 years or one
or more children under the age
13 of 23 years who are full-time students as
provided in K.S.A. 74-49,117
14 and amendments thereto, the annual spouse's
benefit shall be payable in
15 equal shares to such children and each
child's share shall end on the last
16 day of the month in which such child
attains the age of 18 years or dies,
17 whichever occurs earlier or in which such
child attains the age of 23 years,
18 if such child is a full-time student as
provided in K.S.A. 74-49,117 and
19 amendments thereto. Commencing on the
effective date of this act, any
20 child who was receiving benefits pursuant
to this section and who had
21 such benefits terminated by reason of such
child's marriage, shall be en-
22 titled to once again receive benefits
pursuant to this section subject to
23 the limitations contained in this section,
except that such child shall not
24 be entitled to recover any benefits not
received after the termination of
25 benefits by reason of such child's marriage
but before the effective date
26 of this act.
27 The provisions of paragraph
(b) of subsection (2) shall apply in all cases
28 of such members who die after July 1,
1989.
29 (3) Any member who was
employed for compensation by an em-
30 ployer other than the member's
participating employer and whose disa-
31 bility was incurred in the course of such
other employment shall not be
32 eligible for any of the benefits provided
in subsection (2).
33 (4) If a member becomes
totally and permanently disabled and no
34 benefits are payable under subsection (1)
or (2), the sum of the member's
35 accumulated contributions shall be paid to
the member.
36 (5) Any member receiving
benefits under this section shall submit to
37 medical examination, not
oftener more frequent than annually, by one
or
38 more physicians or any other practitioners
of the healing arts holding a
39 valid license issued by Kansas state board
of healing arts, as the board of
40 trustees may direct. If upon such medical
examination, the examiner's
41 report to the board states that the
retirant is physically able and capable
42 of resuming employment with the same or
a different participating em-
43 ployer from whose employment such
member retired, the disability ben-
H Sub. for SB 618--Am. by HCW
71
1 efits shall terminate. A retirant who
has been receiving benefits under
2 the provisions of this section and
who returns to employment, as defined
3 in subsection (4) of K.S.A.
74-4952 and amendments thereto, of a partic-
4 ipating employer shall immediately
commence accruing service credit
5 which shall be added to that which
has been accrued by virtue of previous
6 service.
7 (6) Any retirant
who has been receiving benefits under the provisions
8 of this section for a period of five
years shall be deemed finally retired
9 and shall not be subject to further
medical examinations, except that if
10 the board of trustees shall have reasonable
grounds to question whether
11 the retirant remains totally and
permanently disabled, a further medical
12 examination or examinations may be
required.
13 (7) Refusal or neglect
to submit to examination as provided in sub-
14 section (5) shall be sufficient cause for
suspending or discontinuing ben-
15 efit payments under this section and if
such refusal or neglect shall con-
16 tinue for a period of one year, the
member's rights in and to all benefits
17 under this system may be revoked by the
board.
18 (8) Any retirement
benefits payable under the provisions of this sec-
19 tion shall be in lieu of normal retirement
benefits as provided in subsec-
20 tions (1) and (2) of K.S.A. 74-4958 and
amendments thereto.
21 (9) Each member shall
report to such member's participating em-
22 ployer any event or act of duty causing
disability within 200 days after
23 such event or act of duty. The member's
participating employer shall file
24 in the office of the executive secretary of
the board, in a form acceptable
25 to the board, a report of the event or act
of duty causing disability within
26 220 days after the event or act of
duty.
27 (10) In any case of any
event occurring prior to July 1, 1979, and after
28 June 30, 1998, for which a report of
the event was made by the partici-
29 pating employer to the director of workers'
compensation in accordance
30 with K.S.A. 44-557 and amendments thereto,
such report to the director
31 of workers' compensation shall satisfy the
requirement under subsection
32 (1) of this section to file a report of
such event, in a form acceptable to
33 the board within 220 days. No such report
to the director of workers'
34 compensation shall be deemed to satisfy
such requirement with respect
35 to events occurring on or after July 1,
1979, and prior to July 1, 1998.
36 (11) All payments due
under this section to a minor shall be made to
37 a legally appointed conservator of such
minor, except that such payments
38 may be made to any parent who has
primary residential custody of such
39 minor or a legal guardian of such
minor.
40 (12) The provisions of
this section shall apply only to members who
41 were appointed or employed prior to July 1,
1989, and who did not make
42 an election pursuant to K.S.A. 74-4955a and
amendments thereto.
43 (13) Any retirant who
has been receiving benefits under the provi-
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72
1 sions of this section and who
returns to employment with the same or
2 different participating employer
in the system shall be deemed no longer
3 retired.
4
Sec. 36. [35.] K.S.A. 1997
Supp. 74-4960a is hereby amended to
5 read as follows: 74-4960a. (1) If any
active contributing member who is
6 appointed or employed on or after
July 1, 1989, or who makes an election
7 pursuant to K.S.A. 74-4955a and
amendments thereto to be covered by
8 the provisions of this act becomes
disabled as defined in subsection (2),
9 such member shall receive a monthly
benefit equal to 50% of the mem-
10 ber's final average salary at the time such
member was disabled payable
11 in monthly installments, accruing from the
first day upon which the mem-
12 ber ceases to draw compensation, if a
report of the disability in such form
13 and manner as the board shall prescribe is
filed in the office of the ex-
14 ecutive secretary of the board within 220
days after the date of the com-
15 mencement of such disability and if an
application for such benefit in
16 such form and manner as the board shall
prescribe is filed in the office
17 of the executive secretary of the board
within two years of the date of the
18 commencement of such disability.
19 (2) For the purposes of
this section, ``disabled'' means total inability
20 to perform permanently the duties of the
position of policeman or fire-
21 man.
22 (3) In the event a
member who is disabled and entitled to such ben-
23 efits as provided in subsection (1) dies
after the date of such disability,
24 and no benefits are payable under
subsection (3) of K.S.A. 74-4958 and
25 amendments thereto, the following benefits
shall be payable:
26 (i) To the member's
spouse, if lawfully wedded to the member at the
27 time of the member's death, a lump-sum
benefit equal to 50% of the
28 member's final average salary at the time
such member was disabled.
29 (ii) To the member's
spouse, if lawfully wedded to the member at
30 the time of the member's death, an annual
benefit equal to 50% of the
31 member's benefit payable in monthly
installments, to accrue from the
32 first day of the month following the
member's date of death and ending
33 on the last day of the month in which the
spouse dies. Commencing on
34 the effective date of this act, any
surviving spouse, who was receiving
35 benefits pursuant to this section and who
had such benefits terminated
36 by reason of such spouse's remarriage,
shall be entitled to once again
37 receive benefits pursuant to this section,
except that such surviving spouse
38 shall not be entitled to recover any
benefits not received after the ter-
39 mination of benefits by reason of such
surviving spouse's remarriage but
40 before the effective date of this act. If
there is no surviving spouse, or if
41 after the death of the spouse there remain
one or more children under
42 the age of 18 years or one or more children
under the age of 23 years
43 who is a full-time student as provided in
K.S.A. 74-49,117 and amend-
H Sub. for SB 618--Am. by HCW
73
1 ments thereto, the annual spouse's
benefit shall be payable in equal shares
2 to such children and each child's
share shall end on the last day of the
3 month in which such child attains the
age of 18 years or dies, whichever
4 occurs earlier or in which such child
attains the age of 23 years, if such
5 child is a full-time student as
provided in K.S.A. 74-49,117 and amend-
6 ments thereto. Commencing on the
effective date of this act, any child
7 who was receiving benefits pursuant
to this section and who had such
8 benefits terminated by reason of such
child's marriage, shall be entitled
9 to once again receive benefits
pursuant to this section subject to the lim-
10 itations contained in this section, except
that such child shall not be en-
11 titled to recover any benefits not received
after the termination of benefits
12 by reason of such child's marriage but
before the effective date of this
13 act.
14 (4) Any member who was
employed for compensation by an em-
15 ployer other than the member's
participating employer and whose disa-
16 bility was incurred in the course of such
other employment shall not be
17 eligible for any of the benefits provided
in subsection (1) or (3).
18 (5) If a member becomes
totally and permanently disabled and no
19 benefits are payable under subsection (1),
the sum of the member's ac-
20 cumulated contributions shall be paid to
the member.
21 (6) Any member receiving
benefits under this section shall submit to
22 medical examination, not
oftener more frequent than annually, by one
or
23 more physicians or any other practitioners
of the healing arts holding a
24 valid license issued by Kansas state board
of healing arts, as the board of
25 trustees may direct. If upon such medical
examination, the examiner's
26 report to the board states that the
member is physically able and capable
27 of resuming employment with the same or
different participating em-
28 ployer from whose employment such
member was employed prior to such
29 member's disability, the
disability benefits shall terminate. A member
30 who has been receiving benefits under the
provisions of this section and
31 who returns to employment, as defined in
subsection (4) of K.S.A. 74-
32 4952 and amendments thereto, of a
participating employer shall imme-
33 diately commence accruing service credit
which shall be added to that
34 which has been accrued by virtue of
previous service.
35 (7) Any member who has
been receiving benefits under the provi-
36 sions of this section for a period of five
years shall be deemed permanent
37 and shall not be subject to further medical
examinations, except that if
38 the board of trustees shall have reasonable
grounds to question whether
39 the member remains totally and permanently
disabled, a further medical
40 examination or examinations may be
required.
41 (8) Refusal or neglect
to submit to examination as provided in sub-
42 section (6) shall be sufficient cause for
suspending or discontinuing ben-
43 efit payments under this section and if
such refusal or neglect shall con-
H Sub. for SB 618--Am. by HCW
74
1 tinue for a period of one year, the
member's rights in and to all benefits
2 under this system may be revoked by
the board.
3 (9) In the event
that a member becomes disabled and is eligible for
4 benefits provided in this section,
such member shall be given participating
5 service credit for the entire period
of such disability.
6 (10) Any member
who is receiving benefits pursuant to this section
7 shall file annually a statement of
earnings for the previous year in such
8 form and manner as the board shall
prescribe. Any disability benefit paid
9 to a member entitled to such benefit
pursuant to this section shall be
10 reduced by the board in an amount equal to
a $1 reduction in such benefit
11 for every $2 of earnings of such member
which were earned during the
12 previous year while such member was
disabled. Such reduction shall ap-
13 ply only to a member's earnings which
exceed $10,000.
14 (11) Any benefits
provided pursuant to this section and any partici-
15 pating service credit given pursuant to
subsection (9) shall terminate upon
16 the earliest date such member is eligible
for retirement upon attainment
17 of the normal retirement date as provided
in K.S.A. 74-4964a and amend-
18 ments thereto.
19 (12) Any member who has
received benefits under the provisions of
20 this section for a period of five years or
more immediately preceding
21 retirement shall have such member's final
average salary adjusted upon
22 retirement by the actuarial salary
assumption rates in existence during
23 such period. Effective July 1, 1993, each
member's current annual rate
24 shall be adjusted upon retirement by 5% for
each year of disability after
25 July 1, 1993.
26 (13) All payments due
under this section to a minor shall be made to
27 a legally appointed conservator of such
minor, except that such payments
28 may be made to any parent who has
primary residential custody of such
29 minor or a legal guardian of such
minor.
30 (14) The provisions of
this section shall be effective on and after July
31 1, 1989 and shall apply only to members who
were appointed or employed
32 prior to July 1, 1989, and who made an
election pursuant to K.S.A. 74-
33 4955a and amendments thereto; and persons
appointed or employed on
34 or after July 1, 1989.
35 (15) Any retirant who
has been receiving benefits under the provi-
36 sions of this section and who returns to
employment with the same or
37 different participating employer in the
system shall be deemed no longer
38 retired.
39
Sec. 37. [36.] K.S.A. 1997
Supp. 74-4965 is hereby amended to read
40 as follows: 74-4965. (1) Except as
otherwise provided in this section, each
41 participating employer shall, beginning
with the first payroll period for
42 services performed after the entry date,
deduct from the compensation
43 of each member 7% of such member's
compensation as employee con-
H Sub. for SB 618--Am. by HCW
75
1 tributions, except that in the case
of a member whose employment is
2 covered by social security and the
member is a member of the class cer-
3 tified in the case of Brazelton v.
Kansas public employees retirement
4 system, 227 K. 443, 607 P.2d 510
(1980), the deduction from such mem-
5 ber's compensation shall be reduced
by the amount of such member's
6 contributions to social security.
Commencing the first payroll period co-
7 inciding with or following the
effective date of this act, such contribution
8 rate shall increase by an amount
equal to .4375% and shall increase by
9 an amount equal to .4375% each
year thereafter for the subsequent three
10 years for a maximum member contribution
rate of 8.75%.
11 (2) For any member other
than a member who is a member of the
12 class certified in the case of Brazelton v.
Kansas public employees retire-
13 ment system, 227 K. 443, 607 P.2d 510
(1980), no employee contributions
14 shall be reduced because of contributions
to social security.
15 (3) All such deductions
shall be remitted quarterly, or as the board
16 may otherwise provide, to the executive
secretary for credit to the Kansas
17 public employees retirement fund and shall
be credited to the members'
18 individual accounts. Interest on each
member's accumulated contribu-
19 tions at the rate determined under
subsection (a) of K.S.A. 74-4922 and
20 amendments thereto shall be added annually
to the member's individual
21 account.
22 (4) For all payroll
periods commencing on or after the effective date
23 of this act, each participating employer
shall deduct from the compen-
24 sation of each member who has received 32
years of credited service, 2%
25 of such member's compensation as employee
contributions. Commencing
26 with the first payroll period coinciding
with or following the effective date
27 of this act, such contribution rate
shall increase by an amount equal to
28 .125% and shall increase by an amount
equal to .125% each year there-
29 after for the subsequent three years for
a maximum member's contribution
30 rate of 2.5%.
31 (5) (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.
H Sub. for SB 618--Am. by HCW
76
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. 38. [37.] K.S.A. 1997
Supp. 74-4967 is hereby amended to read
10 as follows: 74-4967. (1) Upon the basis of
an annual actuarial valuation
11 and appraisal of the system conducted in
the manner provided for in
12 K.S.A. 74-4908 and amendments thereto, the
board shall certify, on or
13 before July 15 of each year to each
participating employer an actuarially
14 determined estimate of the rate of
contribution which shall be required
15 to be paid by each such participating
employer to pay all of the liabilities
16 which shall accrue under the system from
and after the entry date as
17 determined by the board, upon
recommendation of the actuary. Such
18 rate shall be uniform for all participating
employers, and shall be com-
19 prised of a rate for benefits accruing
after June 30, 1993, and a rate for
20 amortization of the additional liability
for benefits provided by this act
21 which is attributable to service rendered
before July 1, 1993. Such ad-
22 ditional liability shall be amortized over
a period of 40 years commencing
23 on July 1, 1993, by annual payments that
increase 4% for each year re-
24 maining in the amortization period. The
employer's rate of contribution
25 determined under this section shall not
include the costs of administration
26 of the system. The rate of contribution
for employers determined under
27 this section shall in no event be less
than the member contribution rate
28 as provided in K.S.A. 74-4965 and
amendments thereto.
29 (2) The board shall
determine for each employer separately an
30 amount sufficient to amortize over a period
of not to exceed 40 years all
31 liabilities for past service costs which
shall have accrued at the time of
32 entry into the system. On the basis of such
determination the board shall
33 annually certify to each participating
employer separately an actuarially
34 determined estimate of the rate of
contribution which shall be required
35 to be paid by that participating employer
to pay all of the liabilities for
36 such past service costs. Such rate shall be
termed the employer's prior
37 service contribution. The board may enter
into agreements with any par-
38 ticipating employer which has employees or
retirants under the special
39 pension systems established under K.S.A.
13-14a01 to 13-14a14, inclu-
40 sive, and amendments thereto or K.S.A.
14-10a01 to 14-10a15, inclusive,
41 and amendments thereto, for the purpose of
scheduling the payment of
42 such past service costs in an orderly
manner which will tend to stabilize
43 the annual total financial burden on such
employers in meeting their
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77
1 present and future obligations under
this system and such special systems,
2 but in no event shall the annual
prior service contribution be less than
3 the interest cost on the total of
such past service liability.
4 (3) Each
participating employer shall appropriate and pay to the sys-
5 tem a sum sufficient to satisfy the
obligations under this act as certified
6 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 employer may
levy annually at the time of
11 its levy of taxes, a tax which may be in
addition to all other taxes authorized
12 by law for the purpose of making its
contributions under this act, and, in
13 the case of cities and counties, to pay a
portion of the principal and in-
14 terest on bonds issued by cities under the
authority of K.S.A. 12-1774,
15 and amendments thereto, for the financing
of redevelopment projects
16 upon property located in such county which
tax, together with any other
17 fund available, shall be sufficient to
enable it to make such contribution.
18 In lieu of levying the tax authorized in
this subsection, any taxing subdi-
19 vision may pay such costs from any employee
benefits contribution fund
20 established pursuant to K.S.A. 12-16,102
and amendments thereto.
21 (5) Employer
contributions shall in no way be limited by any other
22 act which now or in the future establishes
or limits the compensation of
23 any member.
24 (6) The rate of
contribution certified to each participating employer
25 as provided in this section shall apply
during the fiscal year of such par-
26 ticipating employer which begins in the
second calendar year following
27 the year of the actuarial valuation, but
the rate of contribution during the
28 first year following the employer's entry
date shall be equal to 16% of the
29 amount of compensation on which members
contribute during the year.
30 (7) Each participating
employer shall remit quarterly, or as the board
31 may otherwise provide, all employee
deductions and required employer
32 contributions to the executive secretary
for credit to the Kansas public
33 employees retirement fund within 20 days
after the end of the period
34 covered by the remittance or within 25 days
after forms or written in-
35 structions from the system were mailed by
the system to such employer,
36 whichever is later. Remittances of such
deductions and contributions re-
37 ceived after such date are delinquent.
Delinquent payments due under
38 this subsection (7) shall be subject to
interest at the rate established for
39 interest on judgments under subsection (a)
of K.S.A. 16-204 and amend-
40 ments thereto. At the request of the board,
delinquent payments which
41 are due or interest owed on such payments,
or both, may be deducted
42 from any other moneys payable to such
employer by any department or
43 agency of the state.
H Sub. for SB 618--Am. by HCW
78
1
Sec. 39. [38.] K.S.A. 1997
Supp. 74-4988 is hereby amended to read
2 as follows: 74-4988. (1) (a)
Each person who is a member of a retirement
3 system and who becomes a member of
another retirement system shall
4 receive credit under each such
retirement system for credited service
5 under the other retirement system for
the purpose of satisfying any re-
6 quirement for such person to complete
certain periods of service to be-
7 come eligible to receive a retirement
benefit or disability benefit or for
8 such person's beneficiaries to
receive a death benefit. The retirement
9 benefit which a person becomes
eligible to receive under a retirement
10 system shall be based only on credited
service under such retirement
11 system, except that the determination of
final average salary under such
12 retirement system shall include the
compensation received as a member
13 of each other retirement system if such
compensation is higher. Except
14 as provided in subsection (1)(b),
such retirement benefit shall become
15 payable upon the member submitting an
application to retire under each
16 system, except that a member who is not
eligible to retire under the
17 retirement system to which such member is
not currently making con-
18 tributions because such member does not
meet the age requirements of
19 the earliest retirement date of such system
may retire, upon meeting the
20 requirements for retirement, under the
provisions of the retirement sys-
21 tem which the member had been most recently
making contributions.
22 No further rights and benefits will accrue
under the retirement system
23 to which the member is not currently making
contributions after the date
24 the member retires from the system from
which the member had been
25 most recently making contributions and the
member will be retired and
26 benefits shall commence on the date that
the member would first have
27 attained retirement age from the system to
which the member is not
28 currently making contributions.
29 (b) The requirement
that a member shall submit an application to
30 retire under each system before becoming
eligible to receive any retire-
31 ment system benefits shall not apply to
any member who was active and
32 contributing to one retirement system
and who was inactive in another
33 retirement system on July 1,
1995.
34 (2) Any member who is
not otherwise eligible for service credit as
35 provided for in subsection (1)(a) of K.S.A.
74-4913 or subsection (1)(a)
36 of K.S.A. 74-4936 and amendments thereto,
may be granted credit for
37 the service upon the attainment of 38
quarters of participating service in
38 any retirement system as defined in
subsection (3)(b) or upon retirement.
39 (3) As used in this
section:
40 (a) ``Member'' means a
person who has attained membership in a
41 retirement system, who has not retired
under such retirement system and
42 who has not withdrawn such person's
accumulated contributions for such
43 retirement system; and
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1 (b) ``retirement
system'' means the Kansas public employees retire-
2 ment system, the Kansas police and
firemen's retirement system and the
3 retirement system for judges.
4
Sec. 40. [39.] K.S.A. 1997
Supp. 74-4992 is hereby amended to read
5 as follows: 74-4992. (a) Any such
member of the legislature or former
6 member of the legislature as
described in K.S.A. 74-4991 and amend-
7 ments thereto shall become a member
on entry date or upon filing with
8 the board an election to become or
not to become a member of the
9 system. In the event that any such
member of the legislature or former
10 member of the legislature fails to file the
election to become a member
11 of the retirement system, it shall be
presumed that such member of the
12 legislature or former member of the
legislature has elected not to become
13 a member. The election to participate shall
become effective immediately
14 upon making such election, if such
election is made within 14 days of
15 taking the oath of office or,
otherwise, on the first day of the first payroll
16 period of the first quarter following
receipt of the election in the office
17 of the retirement system.
18 (b) Any member of the
legislature who had attained membership in
19 the Kansas public employees retirement
system prior to taking the oath
20 of office as a member of the legislature
may elect not to participate in
21 the Kansas public employees retirement
system for the purpose of service
22 as a member of the legislature. Any member
of the legislature who is a
23 member of the retirement system on the
effective date of this act and
24 was a member of the retirement system at
the time of taking the oath of
25 office may elect not to participate in the
retirement system for service as
26 a member of the legislature if such
election is filed within the offices of
27 the system. Upon filing such election such
member of the legislature shall
28 receive a refund of all contributions made
to the retirement system by
29 filing a withdrawal application with the
system.
30 (c) Any member of the
legislature who elected not to participate in
31 the retirement system, and who is not a
contributing member with any
32 other participating employer, may purchase
such participating service by
33 making a single lump-sum payment in an
amount determined by the
34 actuary using the then current rate of
compensation and the actuarial
35 assumptions and tables currently in use by
the system.
36 (d) Except as otherwise
provided in this section, any member of the
37 retirement system may purchase
participating service credit for employ-
38 ment service as described in this section,
if first commenced prior to
39 January 1, 1996, by electing to effect such
purchase by means of having
40 employee contributions as provided in
K.S.A. 74-4919 and amendments
41 thereto deducted from such member's
compensation at a percentage rate
42 equal to two times or three times the
employee's rate of contribution as
43 provided in K.S.A. 74-4919 and amendments
thereto for such periods of
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80
1 service in lieu of a lump-sum amount
as provided in this section. Such
2 deductions shall commence at the
beginning of the quarter following such
3 election and shall remain in effect
until all quarters of such service have
4 been purchased. Any person may make
any such purchase as described
5 in this section, if first commenced
in calendar year 1996 or thereafter, at
6 an additional rate of contribution,
in addition to the employee's rate of
7 contribution as provided in K.S.A.
74-4919 and amendments thereto,
8 based upon the member's attained age
at the time of purchase and using
9 actuarial assumptions and tables in
use by the retirement system at such
10 time of purchase, for such periods of
service, in lieu of a lump-sum
11 amount as provided in this section. Such
additional rate of contribution
12 shall commence at the beginning of the
quarter following such election
13 and shall remain in effect until all
quarters of such service have been
14 purchased.
15 New
Sec. 41. [40.] The
retirement system for judges is a division of
16 the Kansas public employees retirement
system created by K.S.A. 74-
17 4903 and amendments thereto and is subject
to the provisions of K.S.A.
18 74-4901 et seq. and amendments
thereto.
19 New
Sec. 42. [41.] (1) Any
member of the retirement system for
20 judges may purchase participating credit
for periods of active service in
21 the armed forces of the United States or in
the commissioned corps of
22 the United States public health service and
for periods of service required
23 to fulfill the requirements of section 651
of title 10, United States code,
24 which does not exceed six years. Such judge
shall be entitled to purchase
25 one quarter of participating service credit
for each year of service required
26 to fulfill the requirements of section 651
of title 10, United States code.
27 Such purchase shall be effected by the
judge submitting proof of such
28 service acceptable to the board and
electing in writing to have employee
29 contributions as provided in K.S.A. 20-2603
and amendments thereto
30 deducted from such judge's compensation at
an additional rate of con-
31 tribution, in addition to the employee's
rate of contribution as provided
32 in K.S.A. 20-2603 and amendments thereto,
based upon the judge's at-
33 tained age at the time of purchase and
using actuarial assumptions and
34 tables in use by the retirement system at
such time of purchase for such
35 periods of service. Such additional rate of
contribution shall commence
36 at the beginning of the quarter following
such election and shall remain
37 in effect until all of the full quarters of
such service have been purchased.
38 (2) Any member of the
retirement system who has not retired may
39 purchase participating service credit for
military service as described in
40 this section by electing to effect such
purchase by means of a single lump-
41 sum payment in lieu of employee
contributions as provided in this section.
42 The lump-sum payment shall be an amount
determined by the actuary
43 using the judge's then current annual rate
of compensation, the actuarial
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1 assumptions and tables currently in
use by the retirement system and the
2 judge's attained age. No
participating employer shall pay all or any part
3 of the cost of any additional
participating service credit to be purchased
4 by means of a lump-sum payment by a
judge under this section.
5 New
Sec. 43. [42.] The
retirement benefit, pension or annuity pay-
6 ments accruing after June 30, 1998,
to each retirant of the state school
7 retirement system who retired prior
to January 1, 1971, and who had at
8 least 25 years or more of service
credit, shall be increased by an amount
9 equal to $100.
10 New
Sec. 44. [43.] (a) The
retirement benefit, pension or annuity
11 payments accruing after June 30, 1998, to
each retirant and each local
12 school annuitant, shall be increased by an
annual cost-of-living increase
13 in an amount equal to 2/3 of the percentage
increase in the consumer
14 price index for all urban consumers
published by the United States de-
15 partment of labor for the preceding
calendar year, except that such per-
16 centage increase shall not exceed 2.0% in
any given year, multiplied by
17 the retirement benefit, pension or annuity
payment in effect on July 1,
18 1998, and each year thereafter, from the
retirant's retirement system and
19 shall be paid by such retirement system to
the retirant or to the local
20 school annuitant during such period.
21 (b) As used in this
section:
22 (1) ``Retirant'' means
(A) any person who is a member of a retirement
23 system, who retires and who has been
retired for at least five years, (B)
24 any person who is a special member of a
retirement system, who retires
25 and who has been retired for at least five
years, (C) any person who is a
26 joint annuitant or beneficiary of any
member described in clause (A) or
27 any special member described in clause (B)
at a time when such member
28 would have been retired for at least five
years, and (D) any insured dis-
29 ability benefit recipient who has been
disabled for at least five years.
30 (2) ``Retirement
system'' means the Kansas public employees retire-
31 ment system, the Kansas police and
firemen's retirement system, the state
32 school retirement system and the retirement
system for judges.
33 (3) ``Local school
annuitant'' means (A) any person who is an annui-
34 tant with 10 or more years of service, who
is receiving an annuity, whose
35 annuity is not included, in whole or in
part, in payments made to such
36 school district under K.S.A. 72-5512b and
amendments thereto and who
37 is not a member of a group I or of group II
as defined in K.S.A. 72-5518
38 and amendments thereto, and (B) any person
who is receiving an annuity
39 and who retired prior to September 1,
1981.
40 (c) ``Insured disability
benefit recipient'' means any person receiving
41 an insured disability benefit under K.S.A.
74-4927 and amendments
42 thereto.
43 [New
Sec. 44. The board of trustees of the Kansas public
em-
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1 ployees retirement system shall
employ a qualified actuary to con-
2 duct a study as provided in this
section which shall be reported to
3 the legislature at the beginning
of the 1999 regular session of the
4 legislature. The study shall be
conducted to determine and analyze
5 the effects of converting the
retirement systems administered by
6 the board of trustees from defined
benefit plans to defined con-
7 tribution plans with respect to
current or future state employee
8 members of such systems, or
both.]
9
[Sec. 45. K.S.A. 1997 Supp. 46-2201 is hereby amended
to
10 read as follows: 46-2201. (a) On January
1, 1993, there is hereby
11 created the joint committee on pensions,
investments and benefits
12 which shall be composed of five senators
and eight members of
13 the house of representatives. The five
senate members shall be the
14 chairperson of the standing committee on
ways and means of the
15 senate, or a member of such committee
appointed by the chair-
16 person, two members appointed by the
president and two mem-
17 bers appointed by the minority leader.
The eight representative
18 members shall be the chairperson of the
standing committee on
19 appropriations of the house of
representatives, or a member of
20 such committee appointed by the
chairperson, four members ap-
21 pointed by the speaker and three members
appointed by the mi-
22 nority leader.
23 [(b) All members of
the joint committee on pensions, invest-
24 ments and benefits shall serve for terms
ending on the first day of
25 the regular legislative session in
odd-numbered years. After June
26 30 in odd-numbered years, the
chairperson shall be one of the
27 representative members of the joint
committee selected by the
28 speaker and the vice-chairperson shall
be one of the senate mem-
29 bers selected by the president. After
June 30 in even-numbered
30 years, the chairperson shall be one of
the senate members of the
31 joint committee selected by the
president and the vice-chairperson
32 shall be one of the representative
members of the joint committee
33 selected by the speaker. The chairperson
and vice-chairperson of
34 the joint committee shall serve in such
capacities until July 1 of the
35 ensuing year. The vice-chairperson shall
exercise all of the powers
36 of the chairperson in the absence of the
chairperson.
37 [(c) The joint
committee on pensions, investments and benefits
38 shall meet at any time and at any place
within the state on call of
39 the chairperson. Members of the joint
committee shall receive
40 compensation and travel expenses and
subsistence expenses or al-
41 lowances as provided in K.S.A. 75-3212
and amendments thereto
42 when attending meetings of such
committee authorized by the leg-
43 islative coordinating council.
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1 [(d) In
accordance with K.S.A. 46-1204 and amendments
2 thereto, the legislative
coordinating council may provide for such
3 professional services as may be
requested by the joint committee
4 on pensions, investments and
benefits.
5 [(e) The joint
committee on pensions, investments and benefits
6 may introduce such legislation as
deemed necessary in performing
7 such committee's
functions.
8 [(f) The joint
committee on pensions, investments and benefits
9 shall:
10 [(1) Monitor, review
and make recommendations regarding in-
11 vestment policies and objectives
formulated by the board of trus-
12 tees of the Kansas public employees
retirement system;
13 [(2) review and make
recommendations relating to benefits for
14 members under the Kansas public
employees retirement system;
15 [(3) consider and
make recommendations to the standing com-
16 mittee of the senate specified by the
president of the senate relat-
17 ing to the confirmation of members of
the board of trustees of the
18 Kansas public employees retirement
system appointed pursuant to
19 K.S.A. 74-4905 and amendments thereto.
On and after July 1,
20 1993, the information provided by the
Kansas bureau of investi-
21 gation or other criminal justice agency
pursuant to subsection (h)
22 of K.S.A. 74-4905 and amendments thereto
relating to the confir-
23 mation of members of the board to the
standing committee of the
24 senate specified by the president shall
be forwarded by the Kansas
25 bureau of investigation or such other
criminal justice agency to
26 such joint committee for such joint
committee's consideration and
27 other than conviction data, shall be
confidential and shall not be
28 disclosed except to members and
employees of the joint committee
29 as necessary to determine qualifications
of such member. The
30 committee, in accordance with K.S.A.
75-4319 and amendments
31 thereto shall recess for a closed or
executive meeting to receive
32 and discuss information received by the
committee pursuant to this
33 subsection; and
34 [(4) review and make
recommendations to the legislature by
35 the first day of legislative session
commencing in 1997 relating to
36 the implementation of a permanent policy
regarding adjustments
37 in retirement benefit payments to
retirants and disabled members.
38 Such recommendations should include a
review of cost-of-living
39 adjustments, the shared earnings
proposal presented to the 1996
40 legislature and other mechanisms for
prefunding adjustments in
41 retirement benefit payments to retirants
and disabled members as
42 an alternative to annual cost-of-living
adjustments. In conducting
43 such review the committee may utilize
legislative staff, Kansas
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1 public employees retirement system
staff, the Kansas public em-
2 ployees retirement system actuary
and other consultants. Any rec-
3 ommendations shall include
actuarially based cost estimates, in-
4 cluding an assessment of the
impact on the Kansas public
5 employees retirement system fund's
unfunded actuarial liability;
6 and
7
[(5) review and make recommendations relating to
inclusion of city
8 and county correctional officers
as eligible members of the Kansas police
9 and firemen's retirement
system].
10
Sec. 45. [46.] K.S.A.
20-2601a, 20-2603, 20-2605, 20-2606, 20-2610,
11 74-4919, 74-4919i, 74-4924, 74-4953,
74-4954 and 74-4955a and K.S.A.
12 1997 Supp. [46,2201,] 74-4902,
74-4907, 74-4910, 74-4911, 74-4911f,
13 74-4913, 74-4914, 74-4916, 74-4919n,
74-4919p, 74-4919q, 74-4920,
14 74-4921, 74-4927, 74-4936a,
74-4939, 74-4952, 74-4956, 74-4957, 74-
15 4957a, 74-4958, 74-4958a, 74-4959, 74-4960,
74-4960a, 74-4965,
16 74-4967, 74-4988 and 74-4992 are hereby
repealed.
17
Sec. 46. [47.] This act
shall take effect and be in force from and after
18 its publication in the statute book.
19