Session of 1998
                   
SENATE BILL No. 619
         
By Joint Committee on Pensions, Investments and Benefits
         
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            9             AN ACT concerning the Kansas public employees retirement system;
10             relating to purchase of service credit; amending K.S.A. 74-4919i and
11             K.S.A. 1997 Supp. 74-4919n, 74-4919p, 74-4919q and 74-4936a and
12             repealing the existing sections.
13            
14       Be it enacted by the Legislature of the State of Kansas:
15           Section 1. K.S.A. 74-4919i is hereby amended to read as follows: 74-
16       4919i. Any person who becomes a member of the Kansas public employ-
17       ees retirement system pursuant to subsection (14) of K.S.A. 74-4902   and
18       amendments thereto, subsection (4) of K.S.A. 74-4932   and amendments
19       thereto, K.S.A. 74-4911c   and amendments thereto or sections 18 and 19,
20       74-4911d or 74-4919k, and amendments thereto, may elect to purchase
21       additional benefits for any service performed during the period that such
22       person was barred from membership in the Kansas public employees
23       retirement system, except that no person shall purchase additional ben-
24       efits for any service which is the basis or will become the basis for retire-
25       ment credit or benefits under a retirement annuity under the provisions
26       of K.S.A. 74-4925 and amendments thereto.   As used in this section, ``an-
27       nual compensation'' means the rate of annual compensation being paid
28       to such member by the participating employer on the date of application
29       to purchase additional benefits. At the election of the member the benefit
30       for each such year of service shall be equal to either 1% or 1.75% of the
31       final average salary of any such member. Such member may purchase
32       additional benefits by making application therefor   at least three years
33       prior to date of retirement   and by making at an additional rate of con-
34       tribution in addition to the employee's rate of contribution as provided
35       in K.S.A. 74-4919 and amendments thereto, based upon the member's
36       attained age at the time of purchase and using actuarial assumptions and
37       tables in use by the retirement system at the time of such purchase. Such
38       additional rate of contribution shall commence at the beginning of the
39       quarter following such election and shall remain in effect until all quarters
40       of such service have been purchased. Any such member may purchase
41       service as described in this section by electing to effect such purchase by
42       means of of a single lump-sum payment in lieu of employee contribution
43       as provided in this section in an amount equal to the then present value

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  1       of the benefits being purchased as determined by the actuary using the
  2       member's attained age, annual compensation at the time of purchase and
  3       the actuarial assumptions and tables then in use by the system. The lump-
  4       sum payment shall be made immediately upon being notified of the
  5       amount due. No participating employer shall pay all or any part of the
  6       cost of any additional benefits authorized to be purchased by a member
  7       under this section.   The benefit for each such year of service shall be equal
  8       to 1% of the annual compensation at the time the member purchases
  9       such additional benefits.
10           Sec. 2. K.S.A. 1997 Supp. 74-4919n is hereby amended to read as
11       follows: 74-4919n. Any employee of a participating employer who is a
12       member of the Kansas public employees retirement system, who was
13       previously employed in another state in nonfederal governmental em-
14       ployment and which service otherwise meets the requirements of an em-
15       ployee as prescribed in subsection (14) of K.S.A. 74-4902 or subsection
16       (4) of K.S.A. 74-4932 and amendments thereto, may elect to purchase
17         'ior service for such out-of-state nonfederal governmental employment.
18       At the election of the member, the benefit for each such year of employ-
19       ment shall be equal to either 1% or 1.75% of the final average salary of
20       any such member. Such member may purchase such   'ior service by
21       making application therefor prior to date of retirement at an additional
22       rate of contribution in addition to the employee's rate of contribution as
23       provided in K.S.A. 74-4919 and amendments thereto, based upon the
24       member's attained age at the time of purchase and using actuarial as-
25       sumptions and tables in use by the retirement system at the time of such
26       purchase. Such additional rate of contribution shall commence at the
27       beginning of the quarter following such election and shall remain in effect
28       until all quarters of such service have been purchased. Any such member
29       may purchase such   'ior service as described in this section by electing
30       to effect such purchase by means of a single lump-sum payment in lieu
31       of employee contributions as provided in this section in an amount equal
32       to the then present value of the benefits being purchased as determined
33       by the actuary using the member's attained age, annual compensation at
34       the time of purchase and the actuarial assumptions and tables then in use
35       by this system. The lump-sum payment shall be made immediately upon
36       being notified of the amount due. No participating employer shall pay
37       the cost, or any part thereof, of any   'ior service authorized to be pur-
38       chased by a member under this section.
39           Sec. 3. K.S.A. 1997 Supp. 74-4919p is hereby amended to read as
40       follows: 74-4919p. Any member may purchase   'ior service for periods
41       of service in the United States peace corps which commenced on or after
42       January 1, 1962. At the election of the member, the benefit for each such
43       period of service shall be equal to either 1% or 1.75% of the final average

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  1       salary of any such member. Such member may purchase such   'ior serv-
  2       ice by making application therefor prior to date of retirement at an ad-
  3       ditional rate of contribution in addition to the employee's rate of contri-
  4       bution as provided in K.S.A. 74-4919 and amendments thereto, based
  5       upon the member's attained age at the time of purchase and using ac-
  6       tuarial assumptions and tables in use by the retirement system at the time
  7       of such purchase. Such additional rate of contribution shall commence at
  8       the beginning of the quarter following such election and shall remain in
  9       effect until all quarters of such service have been purchased. Any such
10       member may purchase   'ior service as described in this section by elect-
11       ing to effect such purchase by means of a single lump-sum payment in
12       lieu of employee contributions as provided in this section in an amount
13       equal to the then present value of the benefits being purchased as deter-
14       mined by the actuary using the member's attained age, annual compen-
15       sation at the time of purchase and the actuarial assumptions and tables
16       then in use by this system. The lump-sum payment shall be made im-
17       mediately upon being notified of the amount due. No participating em-
18       ployer shall pay the cost, or any part thereof, of any   'ior service author-
19       ized to be purchased by a member under this section. The provisions of
20       this section shall be effective on and after July 1, 1996.
21           Sec. 4. K.S.A. 1997 Supp. 74-4919q is hereby amended to read as
22       follows: 74-4919q. Any employee of a participating employer who is a
23       member of the Kansas public employees retirement system, who was
24       previously employed as an employee of the memorial union corporation
25       which is affiliated with Emporia state university, may elect to purchase
26         'ior service for such employment. At the election of the member, the
27       benefit for each such year of employment shall be equal to either 1% or
28       1.75% of the final average salary of any such member. Such member may
29       purchase such   'ior service by making application therefor prior to date
30       of retirement at an additional rate of contribution in addition to the em-
31       ployee's rate of contribution as provided in K.S.A. 74-4919 and amend-
32       ments thereto, based upon the member's attained age at the time of
33       purchase and using actuarial assumptions and tables in use by the retire-
34       ment system at the time of such purchase. Such additional rate of con-
35       tribution shall commence at the beginning of the quarter following such
36       election and shall remain in effect until all quarters of such service have
37       been purchased. Any such member may purchase   'ior service as de-
38       scribed in this section by electing to effect such purchase by means of a
39       single lump-sum payment in lieu of employee contributions as provided
40       in this section in an amount equal to the then present value of the benefits
41       being purchased as determined by the actuary using the member's at-
42       tained age, annual compensation at the time of purchase and the actuarial
43       assumptions and tables then in use by this system. The lump-sum pay-

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  1       ment shall be made immediately upon being notified of the amount due.
  2       No participating employer shall pay the cost, or any part thereof, of any
  3         'ior service authorized to be purchased by a member under this section.
  4       The provisions of this section shall be effective on and after July 1, 1996.
  5           Sec. 5. K.S.A. 1997 Supp. 74-4936a is hereby amended to read as
  6       follows: 74-4936a. Any employee of a participating employer who is a
  7       member of the Kansas public employees retirement system, who was
  8       previously employed in a teaching position with a public school system of
  9       another state, in a foreign teaching service in an overseas dependents'
10       school, in a recognized teacher exchange program or in any program
11       where a teacher is chosen by the Kansas department of education to teach
12       in a foreign country and which service otherwise meets the requirements
13       of an employee as prescribed in subsection (14) of K.S.A. 74-4902 or
14       subsection (4) of K.S.A. 74-4932 and amendments thereto may elect to
15       purchase   'ior service for such out-of-state public school or overseas
16       teaching employment. At the election of the member, the benefit for each
17       such year of employment shall be equal to either 1% or 1.75% of the final
18       average salary of any such member. Such member may purchase such
19         'ior service by making application therefor prior to date of retirement
20       at an additional rate of contribution in addition to the employee's rate of
21       contribution as provided in K.S.A. 74-4919 and amendments thereto,
22       based upon the member's attained age at the time of purchase and using
23       actuarial assumptions and tables in use by the retirement system at the
24       time of such purchase. Such additional rate of contribution shall com-
25       mence at the beginning of the quarter following such election and shall
26       remain in effect until all quarters of such service have been purchased.
27       Any such member may purchase such   'ior service as described in this
28       section by electing to effect such purchase by means of a single lump-
29       sum payment in lieu of employee contributions as provided in this section
30       in an amount equal to the then present value of the benefits being pur-
31       chased as determined by the actuary using the member's attained age,
32       annual compensation at the time of purchase and the actuarial assump-
33       tions and tables then in use by this system. The lump-sum payment shall
34       be made immediately upon being notified of the amount due. No partic-
35       ipating employer shall pay the cost, or any part thereof, of any   'ior
36       service authorized to be purchased by a member under this section.
37           Sec. 6. K.S.A. 74-4919i and K.S.A. 1997 Supp. 74-4919n, 74-4919p,
38       74-4919q and 74-4936a are hereby repealed.
39           Sec. 7. This act shall take effect and be in force from and after its
40       publication in the statute book.
41      
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