Session of 1998
                   
SENATE BILL No. 620
         
By Joint Committee on Pensions, Investments and Benefits
         
2-10
            9             AN ACT concerning the Kansas public employees retirement system and
10             systems thereunder; relating to benefits; elections; prior service; dis-
11             ability; amending K.S.A. 20-2601a and 74-4953 and K.S.A. 1997 Supp.
12             74-4902, 74-4911, 74-4913, 74-4952, 74-4956, 74-4960, 74-4960a and
13             74-4992 and repealing the existing sections.
14            
15       Be it enacted by the Legislature of the State of Kansas:
16           Section 1. K.S.A. 20-2601a is hereby amended to read as follows: 20-
17       2601a. (a) On and after July 1, 1975, the Kansas judges retirement board
18       established pursuant to K.S.A. 20-2604 and amendments thereto shall be
19       and is hereby abolished, and on   said such date, except as otherwise pro-
20       vided in this act, all of the powers, duties and functions of said Kansas
21       judges retirement board, whether in its capacity as that board pursuant
22       to K.S.A. 20-2604 and amendments thereto or in its capacity as the Kansas
23       official court reporters retirement board pursuant to K.S.A. 20-2704, shall
24       be and are hereby transferred to and conferred and imposed upon the
25       board of trustees of the Kansas public employees retirement system.
26           (b) Except as otherwise provided in this act, the board of trustees of
27       the Kansas public employees retirement system shall be the successor in
28       every way to the powers, duties and functions of the Kansas judges re-
29       tirement board, whether in its capacity as that board pursuant to K.S.A.
30       20-2604 and amendments thereto or in its capacity as the Kansas official
31       court reporters retirement board pursuant to K.S.A. 20-2704, in which
32       the same were vested prior to July 1, 1975. Every act performed in the
33       exercise of such powers, duties and functions by or under the authority
34       of the board of trustees of the Kansas public employees retirement system
35       shall be deemed to have the same force and effect as if performed by the
36       Kansas judges retirement board in which such powers, duties and func-
37       tions were vested prior to July 1, 1975.
38           (c) On and after July 1, 1975, whenever the Kansas judges retirement
39       board, or words of like effect, is referred to or designated by a statute or
40       contract or other document, such reference or designation shall be
41       deemed to apply to the board of trustees of the Kansas public employees
42       retirement system.
43           (d) On and after July 1, 1975, whenever the Kansas official court

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  1       reporters retirement board, or words of like effect, is referred to or des-
  2       ignated by a statute or contract or other document, such reference or
  3       designation shall be deemed to apply to the board of trustees of the
  4       Kansas public employees retirement system.
  5           (e) The board of trustees of the Kansas public employees retirement
  6       system shall adopt rules and regulations necessary for the administration
  7       of the retirement system for judges and for the transaction of business
  8       consistent with law. All rules or regulations of the Kansas judges retire-
  9       ment board in existence on July 1, 1975, whether adopted when acting
10       as that board pursuant to K.S.A. 20-2604 and amendments thereto or
11       when acting as the Kansas official court reporters retirement board pur-
12       suant to K.S.A. 20-2704, shall continue in force and effect and shall be
13       deemed to be duly adopted rules or regulations of the board of trustees
14       of the Kansas public employees retirement system, until revised,
15       amended, revoked or nullified pursuant to law.
16           (f) All decisions and determinations of the Kansas judges retirement
17       board in effect on July 1, 1975, whether made when acting as that board
18       pursuant to K.S.A. 20-2604 and amendments thereto or when acting as
19       the Kansas official court reporters retirement board pursuant to K.S.A.
20       20-2704, shall continue in force and effect and shall be deemed to be
21       decisions and determinations of the board of trustees of the Kansas public
22       employees retirement system, until revised, amended, revoked or nulli-
23       fied pursuant to law.
24           Sec. 2. K.S.A. 1997 Supp. 74-4902 is hereby amended to read as
25       follows: 74-4902. As used in articles 49 and 49a of chapter 74 and amend-
26       ments thereto, unless otherwise provided or the context otherwise re-
27       quires:
28           (1) ``Accumulated contributions'' means the sum of all contributions
29       by a member to the system which are credited to the member's account,
30       with interest allowed thereon;
31           (2) ``acts'' means   K.S.A. 74-4901 to 74-4929, inclusive, the provisions
32       of articles 49 and 49a of chapter 74 of the Kansas Statutes Annotated and
33       amendments thereto;
34           (3) ``actuarial equivalent'' means an annuity or benefit of equal value
35       to the accumulated contributions, annuity or benefit, when computed
36       upon the basis of the actuarial tables in use by the system;
37           (4) ``actuarial tables'' means the actuarial tables approved and in use
38       by the board at any given time;
39           (5) ``actuary'' means the actuary or firm of actuaries employed or
40       retained by the board at any given time;
41           (6) ``agent'' means the individual designated by each participating em-
42       ployer through whom system transactions and communication are di-
43       rected;

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  1           (7) ``beneficiary'' means any natural person or persons or estate
  2       named by a member to receive any benefits as provided for by this act.
  3       Designations of beneficiaries by a member who is a member of more
  4       than one retirement system made on or after July 1, 1987, shall be the
  5       basis of any benefits payable under all systems unless otherwise provided
  6       by law. Except as otherwise provided by subsection (33) of this section,
  7       if there is no named beneficiary living at time of member's death, any
  8       benefits provided for by this act shall be paid to: (A) The member's sur-
  9       viving spouse; (B) the member's dependent child or children; (C) the
10       member's dependent parent or parents; (D) the member's nondependent
11       child or children; (E) the member's nondependent parent or parents; (F)
12       the estate of the deceased member; in the order of preference as specified
13       in this subsection. Any payment made to a named beneficiary shall be a
14       full discharge and release to the system from any further claims. Any
15       payment made to a beneficiary as provided in clauses (A), (B), (C), (D),
16       (E) or (F) of this subsection, as determined by the board, shall be a full
17       discharge and release to the system from any further claims. Whenever
18       any payment is payable to more than one beneficiary such payment shall
19       be made to such beneficiaries jointly. Any benefits payable to a benefi-
20       ciary or beneficiaries who are minor children or incompetent persons
21       shall be made in the name of the beneficiary or beneficiaries and deliv-
22       ered to the lawfully appointed conservator of such beneficiaries who was
23       nominated by will or as otherwise provided by law, except that in those
24       cases where the benefit involves only the payment of the member's ac-
25       cumulated contributions with interest as provided by this act in an amount
26       not to exceed $500, the board is hereby authorized in its discretion with-
27       out the appointment of a conservator or the giving of a bond to pay such
28       amount as is due to the minor or minors themselves, any payment so
29       made shall be a full discharge and release to the system from any further
30       claims;
31           (8) ``board of trustees,'' ``board'' or ``trustees'' means the managing
32       body of the system which is known as the Kansas public employees re-
33       tirement system board of trustees;
34           (9) ``compensation'' means all salary, wages and other remuneration
35       payable to a member for personal services performed for a participating
36       employer, including maintenance or any allowance in lieu thereof pro-
37       vided a member as part of compensation, but not including reimburse-
38       ment for travel or moving expenses or on and after July 1, 1994, payment
39       pursuant to an early retirement incentive program made prior to the
40       retirement of the member. Beginning with the employer's fiscal year
41       which begins in calendar year 1991 or for employers other than the state
42       of Kansas, beginning with the fiscal year which begins in calendar year
43       1992, when the compensation of a member who remains in substantially

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  1       the same position during any two consecutive years of participating serv-
  2       ice used in calculating final average salary is increased by an amount which
  3       exceeds 15%, then the amount of such increase which exceeds 15% shall
  4       not be included in compensation, except that (A) any amount of com-
  5       pensation for accumulated sick leave or vacation or annual leave paid to
  6       the member, (B) any increase in compensation for any member due to a
  7       reclassification or reallocation of such member's position or a reassign-
  8       ment of such member's job classification to a higher range or level and
  9       (C) any increase in compensation as provided in any contract entered into
10       prior to January 1, 1991, and still in force on the effective date of this act,
11       pursuant to an early retirement incentive program as provided in K.S.A.
12       72-5395 et seq. and amendments thereto, shall be included in the amount
13       of compensation of such member used in determining such member's
14       final average salary and shall not be subject to the 15% limitation provided
15       in this subsection. Any contributions by such member on the amount of
16       such increase which exceeds 15% which is not included in compensation
17       shall be returned to the member. Unless otherwise provided by law, be-
18       ginning with the employer's fiscal year coinciding with or following July
19       1, 1985, compensation shall include any amounts for tax sheltered an-
20       nuities or deferred compensation plans. Beginning with the employer's
21       fiscal year which begins in calendar year 1991, compensation shall include
22       amounts under sections 403b, 457 and 125 of the federal internal revenue
23       code of 1986 and any other section of the federal internal revenue code
24       of 1986 which defers or excludes amounts from inclusion in income;
25           (10) ``credited service'' means the sum of participating service and
26       prior service and in no event shall credited service include any service
27       which is credited under another retirement plan authorized under any
28       law of this state;
29           (11) ``dependent'' means a parent or child of a member who is de-
30       pendent upon the member for at least 1/2 of such parent or child's support;
31           (12) ``effective date'' means the date upon which the system becomes
32       effective by operation of law;
33           (13) ``eligible employer'' means the state of Kansas, and any county,
34       city, township, special district or any instrumentality of any one or several
35       of the aforementioned or any noncommercial public television or radio
36       station located in this state which receives state funds allocated by the
37       Kansas public broadcasting commission whose employees are covered by
38       social security. If a class or several classes of employees of any above
39       defined employer are not covered by social security, such employer shall
40       be deemed an eligible employer only with respect to such class or those
41       classes of employees who are covered by social security;
42           (14) ``employee'' means any appointed or elective officer or employee
43       of a participating employer whose employment is not seasonal or tem-

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  1       porary and whose employment requires at least 1,000 hours of work per
  2       year, but not including: (A)   Any person covered by or eligible for or who
  3       will become eligible for a retirement annuity under the provisions of
  4       K.S.A. 74-4925 and amendments thereto except as otherwise specifically
  5       provided in subsection (3) of K.S.A. 74-4925 and amendments thereto
  6       and this subsection; (B) Any employee who is a contributing member of
  7       the United States civil service retirement system;   (C) any employee of an
  8       eligible employer who is a participant in public service employment under
  9       title II and title VI of the federal comprehensive employment and training
10       act of 1973; (D) (B) any employee who is a contributing member of the
11       federal employees retirement system; and (C) any employee or class of
12       employees specifically exempted by law. After June 30, 1975, no person
13       who is otherwise eligible for membership in the Kansas public employees
14       retirement system shall be barred from such membership by reason of
15       coverage by, eligibility for or future eligibility for a retirement annuity
16       under the provisions of K.S.A. 74-4925 and amendments thereto, except
17       that no person shall receive service credit under the Kansas public em-
18       ployees retirement system for any period of service for which benefits
19       accrue or are granted under a retirement annuity plan under the provi-
20       sions of K.S.A. 74-4925 and amendments thereto. After June 30, 1982,
21       no person who is otherwise eligible for membership in the Kansas public
22       employees retirement system shall be barred from such membership by
23       reason of coverage by, eligibility for or future eligibility for any benefit
24       under another retirement plan authorized under any law of this state,
25       except that no such person shall receive service credit under the Kansas
26       public employees retirement system for any period of service for which
27       any benefit accrues or is granted under any such retirement plan. Em-
28       ployee shall include persons who are in training at or employed by, or
29       both, a sheltered workshop for the blind operated by the secretary of
30       social and rehabilitation services. The entry date for such persons shall
31       be the beginning of the first pay period of the fiscal year commencing in
32       calendar year 1986. Such persons shall be granted prior service credit in
33       accordance with K.S.A. 74-4913 and amendments thereto. However, such
34       persons classified as home industry employees shall not be covered by
35       the retirement system;
36           (15) ``entry date'' means the date as of which an eligible employer
37       joins the system. The first entry date pursuant to this act is January 1,
38       1962;
39           (16) ``executive secretary'' means the managing officer of the system
40       employed by the board under this act;
41           (17) ``final average salary'' means in the case of a member who retires
42       prior to January 1, 1977, and in the case of a member who retires after
43       January 1, 1977, and who has less than five years of participating service

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  1       after January 1, 1967, the average highest annual compensation paid to
  2       such member for any five years of the last 10 years of participating service
  3       immediately preceding retirement or termination of employment, or in
  4       the case of a member who retires on or after January 1, 1977, and who
  5       has five or more years of participating service after January 1, 1967, the
  6       average highest annual compensation paid to such member on or after
  7       January 1, 1967, for any five years of participating service preceding re-
  8       tirement or termination of employment, or, in any case, if participating
  9       service is less than five years, then the average annual compensation paid
10       to the member during the full period of participating service, or, in any
11       case, if the member has less than one calendar year of participating service
12       such member's final average salary shall be computed by multiplying such
13       member's highest monthly salary received in that year by 12; in the case
14       of a member who became a member under subsection (3) of K.S.A. 74-
15       4925 and amendments thereto, or who became a member with a partic-
16       ipating employer as defined in subsection (3) of K.S.A. 74-4931 and
17       amendments thereto and who elects to have compensation paid in other
18       than 12 equal installments, such compensation shall be annualized as if
19       the member had elected to receive 12 equal installments for any such
20       periods preceding retirement; in the case of a member who retires after
21       July 1, 1987, the average highest annual compensation paid to such mem-
22       ber for any four years of participating service preceding retirement or
23       termination of employment; in the case of a member who retires on or
24       after July 1, 1993, who was first hired as an employee, as defined in
25       subsection (14) of K.S.A. 74-4902 and amendments thereto, prior to July
26       1, 1993, the average highest annual compensation, as defined in subsec-
27       tion (9), paid to such member for any four years of participating service
28       preceding retirement or termination of employment or the average high-
29       est annual salary, as defined in subsection (34), paid to such member for
30       any three years of participating service preceding retirement or termi-
31       nation of employment, whichever is greater; and in the case of a member
32       who retires on or after July 1, 1993, and who is first hired as an employee,
33       as defined in subsection (14) of K.S.A. 74-4902 and amendments thereto,
34       on or after July 1, 1993, the average highest annual salary, as defined in
35       subsection (34), paid to such member for any three years of participating
36       service preceding retirement or termination of employment. Final aver-
37       age salary shall not include any purchase of participating service credit
38       by a member as provided in subsection (2) of K.S.A. 74-4919h and
39       amendments thereto which is completed within five years of retirement.
40       For any application to purchase or repurchase service credit for a certain
41       period of service as provided by law received by the system after May 17,
42       1994, for any member who will have contributions deducted from such
43       member's compensation at a percentage rate equal to two or three times

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  1       the employee's rate of contribution or will begin paying to the system a
  2       lump-sum amount for such member's purchase or repurchase and such
  3       deductions or lump-sum payment commences after the commencement
  4       of the first payroll period in the third quarter, ``final average salary'' shall
  5       not include any amount of compensation or salary which is based on such
  6       member's purchase or repurchase. Any application to purchase or repur-
  7       chase multiple periods of service shall be treated as multiple applications.
  8       For purposes of this subsection, the date that such member is first hired
  9       as an employee for members who are employees of employers that
10       elected to participate in the system on or after January 1, 1994, shall be
11       the date that such employee's employer elected to participate in the sys-
12       tem;
13           (18) ``fiscal year'' means, for the Kansas public employees retirement
14       system, the period commencing July 1 of any year and ending June 30 of
15       the next;
16           (19) ``Kansas public employees retirement fund'' means the fund cre-
17       ated by this act for payment of expenses and benefits under the system
18       and referred to as the fund;
19           (20) ``leave of absence'' means a period of absence from employment
20       without pay, authorized and approved by the employer, and which after
21       the effective date does not exceed one year;
22           (21) ``member'' means an eligible employee who is in the system and
23       is making the required employee contributions, or any former employee
24       who has made the required contributions to the system and has not re-
25       ceived a refund;
26           (22) ``military service'' means service in the armed forces of the
27       United States or in the United States public health service, which service
28       is immediately preceded by a period of employment as an employee or
29       by the entering into of an employment contract with a participating em-
30       ployer and is followed by return to employment as an employee with the
31       same or another participating employer within 12 months immediately
32       following discharge from such military service, except that if the board
33       determines that such return within 12 months was made impossible by
34       reason of a service-connected disability, the period within which the em-
35       ployee must return to employment with a participating employer shall be
36       extended not more than two years from the date of discharge or separa-
37       tion from military service;
38           (23) ``normal retirement date'' means the date on or after which a
39       member may retire with full retirement benefits pursuant to K.S.A. 74-
40       4914 and amendments thereto;
41           (24) ``participating employer'' means an eligible employer who has
42       agreed to make contributions to the system on behalf of its employees;
43           (25) ``participating service'' means the period of employment after

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  1       the entry date for which credit is granted a member;
  2           (26) ``prior service'' means the period of employment of a member
  3       prior to such member's entry date for which credit is granted a member
  4       under this act;
  5           (27) ``prior service annual salary'' means the highest annual salary,
  6       not including any amounts received as payment for overtime or as re-
  7       imbursement for travel or moving expense, received for personal services
  8       by the member from the current employer in any one of the three cal-
  9       endar years immediately preceding January 1, 1962, or the entry date of
10       the employer, whichever is later, except that if a member entered the
11       employment of the state during the calendar year 1961, the prior service
12       annual salary shall be computed by multiplying such member's highest
13       monthly salary received in that year by 12;
14           (28) ``retirant'' means a member who has retired under this system;
15           (29) ``retirement benefit'' means a monthly income or the actuarial
16       equivalent thereof paid in such manner as specified by the member pur-
17       suant to this act or as otherwise allowed to be paid at the discretion of
18       the board, with benefits accruing from the first day of the month coin-
19       ciding with or following retirement and ending on the last day of the
20       month in which death occurs. Upon proper identification a surviving
21       spouse may negotiate the warrant issued in the name of the retirant;
22           (30) ``retirement system'' or ``system'' means the Kansas public em-
23       ployees retirement system as established by this act and as it may be
24       amended;
25           (31) ``social security'' means the old age, survivors and disability in-
26       surance section of the federal social security act;
27           (32) ``total disability'' means a physical or mental disability which pre-
28       vents the member from engaging, for remuneration or profit, in any oc-
29       cupation for which the member is reasonably suited by education, training
30       or experience;
31           (33) ``trust'' means an express trust, created by a trust instrument,
32       including a will, designated by a member to receive payment of the in-
33       sured death benefit under K.S.A. 74-4927 and amendments thereto and
34       payment of the member's accumulated contributions under subsection
35       (1) of K.S.A. 74-4916 and amendments thereto. A designation of a trust
36       shall be filed with the board. If there is a designated trust at the time of
37       the member's death, the insured death benefit for the member under
38       K.S.A. 74-4927 and amendments thereto and the member's accumulated
39       contributions under subsection (1) of K.S.A. 74-4916 and amendments
40       thereto shall be paid to the trust in lieu of the member's beneficiary. If
41       no will is admitted to probate within six months after the death of the
42       member or no trustee qualifies within such six months or if the designated
43       trust fails, for any reason whatsoever, the insured death benefit under

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  1       K.S.A. 74-4927 and amendments thereto and the member's accumulated
  2       contributions under subsection (1) of K.S.A. 74-4916 and amendments
  3       thereto shall be paid in accordance with the provisions of subsection (7)
  4       of this section as in other cases where there is no named beneficiary living
  5       at the time of the member's death and any payments so made shall be a
  6       full discharge and release to the system from any further claims; and
  7           (34) ``salary'' means all salary and wages payable to a member for
  8       personal services performed for a participating employer, including main-
  9       tenance or any allowance in lieu thereof provided a member as part of
10       salary. Salary shall not include reimbursement for travel or moving ex-
11       penses, payment for accumulated sick leave or vacation or annual leave,
12       severance pay or any other payments to the member determined by the
13       board to not be payments for personal services performed for a partici-
14       pating employer constituting salary or on and after July 1, 1994, payment
15       pursuant to an early retirement incentive program made prior to the
16       retirement of the member. When the salary of a member who remains
17       in substantially the same position during any two consecutive years of
18       participating service used in calculating final average salary is increased
19       by an amount which exceeds 15%, then the amount of such increase
20       which exceeds 15% shall not be included in salary. Any contributions by
21       such member on the amount of such increase which exceeds 15% which
22       is not included in compensation shall be returned to the member. Unless
23       otherwise provided by law, salary shall include any amounts for tax shel-
24       tered annuities or deferred compensation plans. Salary shall include
25       amounts under sections 403b, 457 and 125 of the federal internal revenue
26       code of 1986 and any other section of the federal internal revenue code
27       of 1986 which defers or excludes amounts from inclusion in income. In
28       any case, if participating service is less than three years, then the average
29       annual salary paid to the member during the full period of participating
30       service, or, in any case, if the member has less than one calendar year of
31       participating service such member's final average salary shall be com-
32       puted by multiplying such member's highest monthly salary received in
33       that year by 12.
34           Sec. 3. K.S.A. 1997 Supp. 74-4911 is hereby amended to read as
35       follows: 74-4911. (1) Any employee of a participating employer other than
36       an elected official on the entry date of such employer shall be a member
37       of the system on either the entry date or the first day of the payroll period
38       coinciding with or following the completion of one year of service, which-
39       ever is later. For purposes of this act occasional breaks in service which
40       shall not exceed an aggregate of 10 days in any such year shall not con-
41       stitute a break in service for purposes of determining the membership
42       date of such employee.
43           (2) Except as otherwise provided in this subsection, any employee

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  1       other than an elected official who is employed by a participating employer
  2       after the entry date of such employer shall be a member of the system
  3       on the first day of the payroll period coinciding with or following com-
  4       pletion of one year of continuous service. For purposes of this act, oc-
  5       casional breaks in service which shall not exceed an aggregate of 10 days
  6       in any such year shall not constitute a break in continuous service for
  7       purposes of determining the membership date of such employee. For
  8       purposes of this subsection, any employee of a local governmental unit
  9       which has its own pension plan who becomes an employee of a partici-
10       pating employer as a result of a merger or consolidation of services pro-
11       vided by local governmental units, which occurred on January 1, 1994,
12       may count service with such local governmental unit in determining
13       whether such employee has met the one year of continuous service re-
14       quirement contained in this subsection.
15           (3) Any employee who is an elected official and is eligible to join the
16       system shall elect to become or not to become a member of the system.
17       Such election shall become effective immediately upon making such elec-
18       tion, if such election is made within 14 days of taking the oath of office
19       or, otherwise, on the first day of the first payroll period of the first quarter
20       following receipt of the election in the office of the retirement system.
21       In the event that such elected official fails to file the election to become
22       a member of the retirement system, it shall be presumed that such person
23       has elected not to become a member.
24           (4) Any employee other than an elected official who is in military
25       service or on leave of absence on the entry date of such employee's em-
26       ployer shall become a member of the system upon returning to active
27       employment or on the first day of the payroll period coinciding with or
28       following the completion of one year of service, whichever is later. For
29       purposes of this act, occasional breaks in service which shall not exceed
30       an aggregate of 10 days in any such year shall not constitute a break in
31       service for purposes of determining the membership date of such em-
32       ployee.
33           (5) Any employee of the state of Kansas other than an elected official,
34       who is receiving or is eligible for assistance by the state board of regents
35       in the purchase of a retirement annuity under K.S.A. 74-4925, and
36       amendments thereto, and who becomes ineligible for such assistance be-
37       cause such employee's position is reclassified to a position in the classified
38       service under the Kansas civil service act, or who becomes ineligible for
39       such assistance because such person accepts and transfers to a position
40       in the classified service under the Kansas civil service act shall be a mem-
41       ber of the system on the first day of the payroll period coinciding with or
42       following the effective date of such reclassification or transfer. Any such
43       employee who became ineligible for such assistance prior to the effective

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  1       date of this act because of such a reclassification or such a transfer oc-
  2       curring prior to the effective date of this act and who is not a member of
  3       the system on the effective date of this act shall be a member of the
  4       system on the first day of the payroll period coinciding with or following
  5       the effective date of this act.
  6           (6) Any employee of the state board of regents or of an educational
  7       institution under its management, other than an elected official, who is a
  8       member of the system and who becomes ineligible to be a member of
  9       the system because such employee's position is reclassified to a position
10       under the Kansas civil service act which is eligible for assistance by the
11       state board of regents in the purchase of a retirement annuity under
12       K.S.A. 74-4925 and amendments thereto, or who becomes ineligible to
13       be a member of the system because such employee transfers to a position
14       under the Kansas civil service act which is eligible for such assistance,
15       shall become eligible for such assistance in accordance with the provisions
16       of K.S.A. 74-4925 and amendments thereto, unless such employee files
17       a written election in the office of the retirement system, in the form and
18       manner prescribed by the board of trustees thereof, to remain a member
19       of the system prior to the first day of the first complete payroll period
20       occurring after the effective date of such reclassification or transfer. Fail-
21       ure to file such written election shall be presumed to be an election not
22       to remain a member of the system and to become eligible for assistance
23       by the state board of regents in the purchase of a retirement annuity
24       under K.S.A. 74-4925 and amendments thereto. Such election, whether
25       to remain a member of the system or to become eligible for such assis-
26       tance, shall be effective as of the effective date of such reclassification or
27       transfer, and shall be irrevocable.
28           (7) Any employee who is an elected official and is eligible to join the
29       system as a result of being an elected official, and who at the time of
30       becoming an elected official is already a member of the system by being
31       or having been an employee of a participating employer shall elect to
32       continue as a member of the system or not to continue as a member of
33       the system. Such election shall become effective on the first day of the
34       first payroll period of the first quarter following receipt of the election in
35       the office of the retirement system. In the event that such elected official
36       fails to file the election to continue as a member of the system or not to
37       continue as a member of the system, it shall be presumed that such
38       elected official has elected to continue as a member of the system.
39           Sec. 4. K.S.A. 1997 Supp. 74-4913 is hereby amended to read as
40       follows: 74-4913. (1) Prior service shall be credited as follows:
41           (a) A member shall receive full credit for continuous employment
42       prior to the entry date with such member's employer on the entry date.
43       If the employee was employed on March 15, 1961, by the employer who

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  1       is the employee's employer on the employee's entry date, then all such
  2       previous employment, whether or not continuous, shall be credited; oth-
  3       erwise no credit shall be granted for employment prior to a break in
  4       continuous employment. Any member or retirant who has been credited
  5       with prior service as hereinbefore provided and who was employed by
  6       any participating employer on March 15, 1961, may apply to the board
  7       on such forms as it may prescribe for prior service credit with a partici-
  8       pating employer other than the member's entry date employer. Upon
  9       receipt of written verification of such employment from the participating
10       employer, the board may grant such additional prior service credit and
11       with respect to a retirant, shall adjust the amount of the retirement ben-
12       efit accordingly commencing with the next monthly benefit payment due
13       following receipt of the written verification, except that such retirant shall
14       not be entitled to any retroactive adjustment in the amount of such re-
15       tirement benefit as a result of the board granting such additional prior
16       service credit. In the case of any person other than a retirant receiving a
17       retirement benefit, such person may make application for an adjustment
18       in the benefit amount in the same manner as a member or retirant, and
19       in such case the adjustment in the benefit amount shall be determined
20       by the board upon the advice of the actuary, and shall commence with
21       the next monthly benefit payment due following receipt of the written
22       verification;
23           (b) leaves of absence and military service shall not be counted as
24       breaks in continuous employment; however, military service which is im-
25       mediately preceded and followed by employment with a participating
26       employer shall be credited, except that after July 1, 1974, not more than
27       five years' credit for military service shall be granted hereunder, but
28       leaves of absence shall not be credited;
29           (c) any member who was employed in the Kansas state employment
30       service, now a section of the Kansas division of employment security,
31       during any of the time the Kansas state employment service was loaned
32       by the state to the federal government (January 1, 1942, for the duration
33       of the emergency period of world war II, which service was returned to
34       the state by the federal government effective November 16, 1946) shall
35       be entitled to prior service credit for the time so employed during the
36       period stated for any service rendered under the jurisdiction of the United
37       States employment service for the federal government in like manner as
38       if the employment service had remained under the jurisdiction of the
39       state of Kansas;
40           (d) any member who is not otherwise eligible for service credit as
41       provided for in subsection (1)(a) may be granted credit for the service
42       upon the attainment of 38 quarters of participating service;
43           (e) any member who was employed by the university of Wichita prior

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  1       to July 1, 1964, shall be entitled to prior service credit for such time of
  2       employment under the Kansas public employees retirement system,
  3       when such employment is not the basis for other pension rights.
  4           (2) Participating service shall be credited as follows: (a) A member
  5       shall receive credit for participating service with a participating employer
  6       in accordance with the rules and regulations established by the board of
  7       trustees, except that no more than one calendar quarter of participating
  8       service shall be credited for any employment within any one calendar
  9       quarter;
10           (b) leaves of absence and military service shall not count as a break
11       in continuous employment provided the member leaves such member's
12       accumulated contribution on deposit with the fund; however, the period
13       of military service shall be credited, except that after July 1, 1974, not
14       more than five years' credit for military service shall be granted here-
15       under, but leaves of absence shall not be credited. Employees who enter
16       the military service from their employment after the employer's entry
17       date and who have not completed one year of service at the time of their
18       entry into the military service, shall not become members of the retire-
19       ment system until they return to the employment of that or another par-
20       ticipating employer. In the case of such employee whose combined public
21       employment and military service does not equal one year at the time of
22       such employee's return to employment, the date of membership shall be
23       the first day of the payroll period coinciding with or following the com-
24       pletion of one combined public employment and military year of service.
25       Such service shall be granted in accordance with this section;
26           (c) a period of retirement under the system or a period of total dis-
27       ability, immediately followed by employment with a participating em-
28       ployer, shall not count as a break in continuous employment, except that
29       such periods while not employed shall not be credited as participating
30       service;
31           (d) termination of employment, followed by employment with a par-
32       ticipating employer within five years after such termination, does not
33       constitute a break in continuous employment if such person has not with-
34       drawn such person's accumulated contribution. Such period while not
35       employed shall not be credited as participating service.
36           (3) In determining the number of years of credited prior service or
37       participating service a fractional year of six months or more shall be con-
38       sidered as one year and a fractional year of less than six months shall be
39       disregarded.
40           Sec. 5. K.S.A. 1997 Supp. 74-4952 is hereby amended to read as
41       follows: 74-4952. As used in K.S.A. 74-4951 et seq. and amendments
42       thereto:
43           (1) ``Accumulated contributions'' means the sum of all contributions

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  1       by a member to the system which shall be credited to the member's
  2       account with interest allowed thereon after June 30, 1982.
  3           (2) ``Disability'' means the total inability to perform permanently the
  4       duties of the position of a policeman or fireman.
  5           (3) ``Eligible employer'' means any city, county, township or other
  6       political subdivision of the state employing one or more employees as
  7       firemen or policemen.
  8           (4) ``Employee'' means any policeman or fireman employed by a par-
  9       ticipating employer whose employment for police or fireman purposes is
10       not seasonal or temporary and requires at least 1,000 hours of work per
11       year.
12           (5) ``Entry date'' means the date as of which an eligible employer
13       joins the system; the first entry date pursuant to this act is January 1,
14       1967.
15           (6) ``Final average salary'' means:
16           (a) For members who are first hired as an employee, as defined in
17       subsection (4), before July 1, 1993, the average highest annual compen-
18       sation paid to a member for any three of the last five years of participating
19       service immediately preceding retirement or termination of employment,
20       or if participating service is less than three years, then the average annual
21       compensation paid to the member during the full period of participating
22       service, or if a member has less than one calendar year of participating
23       service, then the member's final average salary shall be computed by
24       multiplying the member's highest monthly salary received in that year by
25       12;
26           (b) for members who are first hired as an employee, as defined in
27       subsection (4), on and after July 1, 1993, the average highest annual salary,
28       as defined in subsection (34) of K.S.A. 74-4902 and amendments thereto,
29       paid to a member for any three of the last five years of participating
30       service immediately preceding retirement or termination of employment,
31       or if participating service is less than three years, then the average annual
32       salary, as defined in subsection (34) of K.S.A. 74-4902 and amendments
33       thereto, paid to the member during the full period of participating service,
34       or if a member has less than one calendar year of participating service,
35       then the member's final average salary shall be computed by multiplying
36       the member's highest monthly salary received in that year by 12;
37           (c) for purposes of subparagraphs (a) and (b) of this subsection, the
38       date that such member is first hired as an employee for members who
39       are employees of employers that elected to participate in the system on
40       or after January 1, 1994, shall be the date that such employee's employer
41       elected to participate in the system; and
42           (d) for any application to purchase or repurchase service credit for a
43       certain period of service as provided by law received by the system after

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  1       May 17, 1994, for any member who will have contributions deducted from
  2       such member's compensation at a percentage rate equal to two or three
  3       times the employee's rate of contribution or who will have contributions
  4       deducted from such member's compensation at an additional rate of con-
  5       tribution, in addition to the employee's rate of contribution as provided
  6       in K.S.A. 74-4919 and amendments thereto or will begin paying to the
  7       system a lump-sum amount for such member's purchase or repurchase,
  8       and such deductions or lump-sum payment commences after the com-
  9       mencement of the first payroll period in the third quarter, ``final average
10       salary'' shall not include any amount of compensation or salary which is
11       based on such member's purchase or repurchase. Any application to pur-
12       chase or repurchase multiple periods of service shall be treated as mul-
13       tiple applications.
14           (7) ``Retirement benefit'' means a monthly income or the actuarial
15       equivalent thereof paid in such manner as specified by the member as
16       provided under the system or as otherwise allowed to be paid at the
17       discretion of the board, with benefits accruing from the first day of the
18       month coinciding with or following retirement and ending on the last day
19       of the month in which death occurs. Upon proper identification such
20       surviving spouse may negotiate the warrant issued in the name of the
21       retirant.
22           (8) ``Normal retirement date'' means the date on or after which a
23       member may retire with eligibility for retirement benefits for age and
24       service as provided in subsections (1) and (3) of K.S.A. 74-4957 and
25       amendments thereto;
26           (9) ``Retirement system'' or ``system'' means the Kansas police and
27       firemen's retirement system as established by this act and as it may be
28       hereafter amended.
29           (10) ``Service-connected'' means with regard to a death or any phys-
30       ical or mental disability, any such death or disability resulting from ex-
31       ternal force, violence or disease occasioned by an act of duty as a police-
32       man or fireman and, for any member after five years of credited service,
33         includes there shall be a rebuttable presumption, that any death or disa-
34       bility resulting from a heart disease or disease of the lung or respiratory
35       tract or cancer as provided in this subsection, except that in the event
36       that the member ceases to be a contributing member   except by reason
37       of a service-connected disability for a period of six months or more and
38       then again becomes a contributing member, the provision relating to
39       death or disability resulting from a heart disease, disease of the lung or
40       respiratory tract or cancer as provided in this subsection shall not apply
41       until such member has again become a contributing member for a period
42       of not less than two years or unless clear and precise evidence is presented
43       that the heart disease, disease of the lung or respiratory tract or cancer

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  1       as provided in this subsection was in fact occasioned by an act of duty as
  2       a policeman or fireman. If the retirement system receives evidence to the
  3       contrary of such presumption, the burden of proof shall be on the member
  4       or other party to present evidence that such death or disability was serv-
  5       ice-connected. The provisions of this section relating to the presumption
  6       that the death or disability resulting from cancer is service-connected shall
  7       only apply if the condition that caused the death or disability is a type of
  8       cancer which may, in general, result from exposure to heat, radiation or
  9       a known carcinogen.
10           (11) ``Fireman'' or ``firemen'' means an employee assigned to the fire
11       department and engaged in the fighting and extinguishment of fires and
12       the protection of life and property therefrom or in support thereof and
13       who is specifically designated, appointed, commissioned or styled as such
14       by the governing body or city manager of the participating employer and
15       certified to the retirement system as such.
16           (12) ``Police,'' ``policeman'' or ``policemen'' means an employee as-
17       signed to the police department and engaged in the enforcement of law
18       and maintenance of order within the state and its political subdivisions,
19       including sheriffs and sheriffs' deputies, or in support thereof and who is
20       specifically designated, appointed, commissioned or styled as such by the
21       governing body or city manager of the participating employer and certi-
22       fied to the retirement system as such.
23           (13) Except as otherwise defined in this act, words and phrases used
24       in K.S.A. 74-4951 et seq. and amendments thereto, shall have the same
25       meanings ascribed to them as are defined in K.S.A. 74-4902 and amend-
26       ments thereto.
27           Sec. 6. K.S.A. 74-4953 is hereby amended to read as follows: 74-
28       4953. There is hereby created the ``Kansas police and firemen's retire-
29       ment system'' which shall be a division of the Kansas public employees
30       retirement system created by K.S.A. 74-4903  , and which shall be and
31       amendments thereto and is subject to the provisions of K.S.A. 74-4901   ø
32       74-4926 et seq. and amendments thereto.
33           Sec. 7. K.S.A. 1997 Supp. 74-4956 is hereby amended to read as
34       follows: 74-4956. (1) Prior service shall be credited as follows:
35           (a) Each member shall receive:
36           (i) Full credit for all employment, whether or not continuous, as ei-
37       ther a policeman or fireman prior to the entry date with such member's
38       employer who is such member's employer on the entry date;
39           (ii) full credit for all employment, whether or not continuous, as ei-
40       ther a police or fireman prior to the entry date of such police or firemen's
41       employer, with a participating employer, if such member has at least 20
42       years of credited service; and
43           (iii) for all continuous employment with the same employer other

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  1       than either as policeman or fireman, immediately preceding such service
  2       as a policeman or fireman,   12 months 1 month of credit for each   24 2
  3       months of service. Any member or retirant who has been credited with
  4       prior service as provided in this section may apply to the board on such
  5       forms as the board prescribes for prior service credit with a participating
  6       employer under the Kansas police and firemen's retirement system other
  7       than such member's entry date employer. Each member shall receive full
  8       credit for all employment as either a policeman or fireman with such
  9       other participating employers and shall receive   12 months 1 month of
10       credit for each   24 2 months of continuous service with other participating
11       employers for continuous employment preceding service as a policeman
12       or fireman. Upon receipt of written verification of such employment from
13       such other participating employer, the board may grant such additional
14       prior service credit. With respect to a retirant, the board shall adjust the
15       amount of the retirement benefit accordingly commencing with the next
16       monthly benefit payment due following receipt of written verification. In
17       the case of any person other than a retirant receiving a retirement benefit,
18       such person may make application for an adjustment in the benefit
19       amount in the same manner as a member or retirant, and in such case
20       the adjustment in the benefit amount shall be determined by the board
21       upon the advice of the actuary, and shall commence with the next monthly
22       benefit payment due following receipt of written verification, except that
23       no additional prior service credit shall be granted for any service with
24       another participating employer for which benefits are being received or
25       will be received. A retirant or any other person receiving a retirement
26       benefit shall not be entitled to any retroactive adjustment in the amount
27       of retirement benefit as a result of the board granting such additional
28       prior service credit.
29           If a member was employed as a fireman   (other than as a volunteer
30       fireman  ), by a township which is annexed by a participating employer the
31       member's retirement benefits and death and disability benefits shall be
32       computed on the basis of credited service. Continuous service as a fire-
33       man with a township prior to annexation by a member, who became a
34       member immediately following the annexation, shall be considered cred-
35       ited service.
36           No such service shall be considered credited service for the purpose
37       of computing years of service if such fireman is receiving or will become
38       eligible to receive benefits as a result of such service with the township.
39           (b) Leaves of absence and military service shall not be counted as
40       breaks in continuous employment; however, military service which is pre-
41       ceded within 30 days and followed by employment with a participating
42       employer shall be credited, except that after July 1, 1974, not more than
43       five years credit for military service shall be granted hereunder, but leaves

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  1       of absence shall not be credited.
  2           (2) Participating service shall be credited as follows: (a) A member
  3       shall receive credit for participating service with a participating employer
  4       in accordance with the rules and regulations established by the board. No
  5       more than one calendar quarter of participating service shall be credited
  6       for employment within any one calendar quarter.
  7           (b) Leaves of absence shall not be counted as a termination of em-
  8       ployment provided the member leaves such member's accumulated con-
  9       tributions on deposit with the system and returns to employment with
10       the employer granting such leave; however, the period of leave of absence
11       shall not be credited service.
12           (c) Military service shall not count as a break in continuous employ-
13       ment provided the member leaves such member's accumulated contri-
14       butions on deposit with the system and returns to employment within 12
15       months of such member's discharge from military service without vol-
16       untarily extending such member's service. Such member shall receive
17       credited service for such period of military service.
18           (d) Termination of employment with a participating employer fol-
19       lowed by employment with the same or another participating employer
20       within two years shall not constitute a termination of membership pro-
21       vided the member leaves such member's accumulated contributions on
22       deposit with the system; however, the period while not employed shall
23       not be credited.
24           (3) In determining the number of years of credited service for cal-
25       culation of retirement benefits a fractional year of six months or more of
26       credited service shall be considered as one year and a fractional year of
27       less than six months of credited service shall be disregarded.
28           Sec. 8. K.S.A. 1997 Supp. 74-4960 is hereby amended to read as
29       follows: 74-4960. (1) If any active contributing member becomes totally
30       and permanently disabled due to service-connected causes as defined in
31       subsection (10) of K.S.A. 74-4952 and amendments thereto, such mem-
32       ber shall be retired and the following benefits shall become payable and
33       shall continue until the member's death or until the member recovers
34       from the disability if: A report of the event in a form acceptable to the
35       board is filed in the office of the executive secretary of the board within
36       220 days after the date of the event or act of duty causing such disability;
37       and an application for such benefit, in such form and manner as the board
38       prescribes, is filed by the member or the member's authorized represen-
39       tative in the office of the executive secretary of the board within two years
40       of the date of disability:
41           (a) On and after July 1, 1993, the member shall receive a retirement
42       benefit equal to 50% of the member's final average salary or, if the mem-
43       ber has no dependents, as defined in subsection (1)(b), the retirement

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  1       benefit the member would have been entitled to as provided under K.S.A.
  2       74-4958 and amendments thereto had the member retired, whichever is
  3       greater. Such benefit shall accrue from the day upon which the member
  4       ceases to draw compensation.
  5           (b) Each of the member's children under the age of 18 years or each
  6       of the member's children under the age of 23 years who is a full-time
  7       student as provided in K.S.A. 74-49,117 and amendments thereto shall
  8       receive an annual benefit equal to 10% of the member's final average
  9       salary. Such benefit shall accrue from the day upon which the member
10       ceases to draw compensation and shall end on the last day of the month
11       in which each such child or children shall attain the age of 18 years or
12       die, whichever occurs earlier or in which such children attain the age of
13       23 years, if such child is a full-time student as provided in K.S.A. 74-
14       49,117 and amendments thereto. Commencing on the effective date of
15       this act, any child who was receiving benefits pursuant to this section and
16       who had such benefits terminated by reason of such child's marriage,
17       shall be entitled to once again receive benefits pursuant to this section
18       subject to the limitations contained in this section, except that such child
19       shall not be entitled to recover any benefits not received after the ter-
20       mination of benefits by reason of such child's marriage but before the
21       effective date of this act.
22           (c) In no case shall the total of the benefits payable under paragraphs
23       (a) and (b) of this subsection (1) be in excess of 75% of the member's
24       final average salary.
25           (d) In the event a member who is retired under subsection (1) dies
26       within two years after the date of such retirement and no benefits are
27       payable under subsection (3) of K.S.A. 74-4958 and amendments thereto,
28       then benefits may be payable under subsection (1) of K.S.A. 74-4959 and
29       amendments thereto.
30           (e) In the event a member who is retired under subsection (1) dies
31       more than two years after the date of such retirement, and the proximate
32       cause of such death is the service-connected cause from which the disa-
33       bility resulted and no benefits are payable under subsection (3) of K.S.A.
34       74-4958 and amendments thereto, then benefits may be payable under
35       subsection (1) of K.S.A. 74-4959 and amendments thereto. The provisions
36       of this paragraph (e) of this subsection (1) shall apply in all cases of such
37       members who die after June 30, 1978.
38           (f) In the event a member who is retired under subsection (1) dies
39       after the date of such retirement, and no benefits are payable under
40       paragraphs (d) and (e) of subsection (1), nor under subsection (3) of
41       K.S.A. 74-4958 and amendments thereto, the following benefits shall be
42       payable:
43           (i) To the member's spouse, if lawfully wedded to the member at the

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  1       time of the member's death, a lump-sum benefit equal to 50% of the
  2       member's final average salary at the time of the member's retirement.
  3           (ii) To the member's spouse, if lawfully wedded to the member at
  4       the time of the member's death, an annual benefit equal to 50% of the
  5       member's retirement benefit payable in monthly installments, to accrue
  6       from the first day of the month following the member's date of death and
  7       ending on the last day of the month in which the spouse dies. Com-
  8       mencing on the effective date of this act, any surviving spouse, who was
  9       receiving benefits pursuant to this section and who had such benefits
10       terminated by reason of such spouse's remarriage, shall be entitled to
11       once again receive benefits pursuant to this section, except that such
12       surviving spouse shall not be entitled to recover any benefits not received
13       after the termination of benefits by reason of such surviving spouse's
14       remarriage but before the effective date of this act. If there is no surviving
15       spouse, or if after the death of the spouse there remain one or more
16       children under the age of 18 years or one or more children under the age
17       of 23 years who is a full-time student as provided in K.S.A. 74-49,117 and
18       amendments thereto, the annual spouse's benefit shall be payable in equal
19       shares to such children and each child's share shall end on the last day of
20       the month in which such child attains the age of 18 years or dies, which-
21       ever occurs earlier or in which such child attains the age of 23 years, if
22       such child is a full-time student as provided in K.S.A. 74-49,117 and
23       amendments thereto. Commencing on the effective date of this act, any
24       child who was receiving benefits pursuant to this section and who had
25       such benefits terminated by reason of such child's marriage, shall be en-
26       titled to once again receive benefits pursuant to this section subject to
27       the limitations contained in this section, except that such child shall not
28       be entitled to recover any benefits not received after the termination of
29       benefits by reason of such child's marriage but before the effective date
30       of this act.
31           The provisions of paragraph (f) of subsection (1) shall apply in all cases
32       of such members who die after December 1, 1984.
33           (2) (a) If any active contributing member, prior to such member's
34       normal retirement, becomes totally and permanently disabled for a period
35       of 180 days from causes not service-connected, and not as the result of a
36       willfully negligent or intentional act of the member, such member shall
37       be retired and the following benefit shall become payable and shall con-
38       tinue until the member's death or until the member recovers from such
39       disability, whichever occurs first, if a report of the disability in a form
40       acceptable to the board is filed in the office of the executive secretary of
41       the board within 220 days after the date of the commencement of such
42       disability and if an application for such benefit in such form and manner
43       as the board shall prescribe is filed in the office of the executive secretary

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  1       of the board within two years of the date of disability:
  2           A retirement benefit equal to 2.5% of the member's final average salary
  3       multiplied by the number of years of credited service or the retirement
  4       benefit the member would have been entitled to as provided under K.S.A.
  5       74-4958 and amendments thereto had the member retired, whichever is
  6       greater, multiplied by the number of years of credited service except that
  7       such retirement benefit shall be at least equal to 25% of the member's
  8       final average salary but shall not exceed the amount of the retirement
  9       benefit provided in paragraph (a) of subsection (1). Such benefit shall not
10       become payable until satisfactory evidence shall be presented to the board
11       that the member is and has been totally and permanently disabled for a
12       period of 180 days, but benefits shall accrue from the day upon which
13       the member ceases to draw compensation.
14           (b) In the event a member who is retired under subsection (2) dies
15       after the date of such retirement, and no benefits are payable under
16       subsection (3) of K.S.A. 74-4958 and amendments thereto, the following
17       benefits shall be payable:
18           (i) To the member's spouse, if lawfully wedded to the member at the
19       time of the member's death, a lump-sum benefit equal to 50% of the
20       member's final average salary at the time of the member's retirement.
21           (ii) To the member's spouse, if lawfully wedded to the member at
22       the time of the member's death, an annual benefit equal to 50% of the
23       member's retirement benefit payable in monthly installments, to accrue
24       from the first day of the month following the member's date of death and
25       ending on the last day of the month in which the spouse dies. Com-
26       mencing on the effective date of this act, any surviving spouse, who was
27       receiving benefits pursuant to this section and who had such benefits
28       terminated by reason of such spouse's remarriage, shall be entitled to
29       once again receive benefits pursuant to this section, except that such
30       surviving spouse shall not be entitled to recover any benefits not received
31       after the termination of benefits by reason of such surviving spouse's
32       remarriage but before the effective date of this act. If there is no surviving
33       spouse, or if after the death of the spouse there remain one or more
34       children under the age of 18 years or one or more children under the age
35       of 23 years who are full-time students as provided in K.S.A. 74-49,117
36       and amendments thereto, the annual spouse's benefit shall be payable in
37       equal shares to such children and each child's share shall end on the last
38       day of the month in which such child attains the age of 18 years or dies,
39       whichever occurs earlier or in which such child attains the age of 23 years,
40       if such child is a full-time student as provided in K.S.A. 74-49,117 and
41       amendments thereto. Commencing on the effective date of this act, any
42       child who was receiving benefits pursuant to this section and who had
43       such benefits terminated by reason of such child's marriage, shall be en-

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  1       titled to once again receive benefits pursuant to this section subject to
  2       the limitations contained in this section, except that such child shall not
  3       be entitled to recover any benefits not received after the termination of
  4       benefits by reason of such child's marriage but before the effective date
  5       of this act.
  6           The provisions of paragraph (b) of subsection (2) shall apply in all cases
  7       of such members who die after July 1, 1989.
  8           (3) Any member who was employed for compensation by an em-
  9       ployer other than the member's participating employer and whose disa-
10       bility was incurred in the course of such other employment shall not be
11       eligible for any of the benefits provided in subsection (2).
12           (4) If a member becomes totally and permanently disabled and no
13       benefits are payable under subsection (1) or (2), the sum of the member's
14       accumulated contributions shall be paid to the member.
15           (5) Any member receiving benefits under this section shall submit to
16       medical examination, not   oftener more frequent than annually, by one or
17       more physicians or any other practitioners of the healing arts holding a
18       valid license issued by Kansas state board of healing arts, as the board of
19       trustees may direct. If upon such medical examination, the examiner's
20       report to the board states that the retirant is physically able and capable
21       of resuming employment with the same or a different participating em-
22       ployer   from whose employment such member retired, the disability ben-
23       efits shall terminate. A retirant who has been receiving benefits under
24       the provisions of this section and who returns to employment, as defined
25       in subsection (4) of K.S.A. 74-4952 and amendments thereto, of a partic-
26       ipating employer shall immediately commence accruing service credit
27       which shall be added to that which has been accrued by virtue of previous
28       service.
29           (6) Any retirant who has been receiving benefits under the provisions
30       of this section for a period of five years shall be deemed finally retired
31       and shall not be subject to further medical examinations, except that if
32       the board of trustees shall have reasonable grounds to question whether
33       the retirant remains totally and permanently disabled, a further medical
34       examination or examinations may be required.
35           (7) Refusal or neglect to submit to examination as provided in sub-
36       section (5) shall be sufficient cause for suspending or discontinuing ben-
37       efit payments under this section and if such refusal or neglect shall con-
38       tinue for a period of one year, the member's rights in and to all benefits
39       under this system may be revoked by the board.
40           (8) Any retirement benefits payable under the provisions of this sec-
41       tion shall be in lieu of normal retirement benefits as provided in subsec-
42       tions (1) and (2) of K.S.A. 74-4958 and amendments thereto.
43           (9) Each member shall report to such member's participating em-

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  1       ployer any event or act of duty causing disability within 200 days after
  2       such event or act of duty. The member's participating employer shall file
  3       in the office of the executive secretary of the board, in a form acceptable
  4       to the board, a report of the event or act of duty causing disability within
  5       220 days after the event or act of duty.
  6           (10) In any case of any event occurring prior to July 1, 1979, and after
  7       June 30, 1998, for which a report of the event was made by the partici-
  8       pating employer to the director of workers' compensation in accordance
  9       with K.S.A. 44-557 and amendments thereto, such report to the director
10       of workers' compensation shall satisfy the requirement under subsection
11       (1) of this section to file a report of such event, in a form acceptable to
12       the board within 220 days. No such report to the director of workers'
13       compensation shall be deemed to satisfy such requirement with respect
14       to events occurring on or after July 1, 1979, and prior to July 1, 1998.
15           (11) All payments due under this section to a minor shall be made to
16       a legally appointed conservator of such minor.
17           (12) The provisions of this section shall apply only to members who
18       were appointed or employed prior to July 1, 1989, and who did not make
19       an election pursuant to K.S.A. 74-4955a and amendments thereto.
20           (13) Any retirant who has been receiving benefits under the provi-
21       sions of this section and who returns to employment with the same or
22       different participating employer in the system shall be deemed no longer
23       retired.
24           Sec. 9. K.S.A. 1997 Supp. 74-4960a is hereby amended to read as
25       follows: 74-4960a. (1) If any active contributing member who is appointed
26       or employed on or after July 1, 1989, or who makes an election pursuant
27       to K.S.A. 74-4955a and amendments thereto to be covered by the pro-
28       visions of this act becomes disabled as defined in subsection (2), such
29       member shall receive a monthly benefit equal to 50% of the member's
30       final average salary at the time such member was disabled payable in
31       monthly installments, accruing from the first day upon which the member
32       ceases to draw compensation, if a report of the disability in such form
33       and manner as the board shall prescribe is filed in the office of the ex-
34       ecutive secretary of the board within 220 days after the date of the com-
35       mencement of such disability and if an application for such benefit in
36       such form and manner as the board shall prescribe is filed in the office
37       of the executive secretary of the board within two years of the date of the
38       commencement of such disability.
39           (2) For the purposes of this section, ``disabled'' means total inability
40       to perform permanently the duties of the position of policeman or fire-
41       man.
42           (3) In the event a member who is disabled and entitled to such ben-
43       efits as provided in subsection (1) dies after the date of such disability,

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  1       and no benefits are payable under subsection (3) of K.S.A. 74-4958 and
  2       amendments thereto, the following benefits shall be payable:
  3           (i) To the member's spouse, if lawfully wedded to the member at the
  4       time of the member's death, a lump-sum benefit equal to 50% of the
  5       member's final average salary at the time such member was disabled.
  6           (ii) To the member's spouse, if lawfully wedded to the member at
  7       the time of the member's death, an annual benefit equal to 50% of the
  8       member's benefit payable in monthly installments, to accrue from the
  9       first day of the month following the member's date of death and ending
10       on the last day of the month in which the spouse dies. Commencing on
11       the effective date of this act, any surviving spouse, who was receiving
12       benefits pursuant to this section and who had such benefits terminated
13       by reason of such spouse's remarriage, shall be entitled to once again
14       receive benefits pursuant to this section, except that such surviving spouse
15       shall not be entitled to recover any benefits not received after the ter-
16       mination of benefits by reason of such surviving spouse's remarriage but
17       before the effective date of this act. If there is no surviving spouse, or if
18       after the death of the spouse there remain one or more children under
19       the age of 18 years or one or more children under the age of 23 years
20       who is a full-time student as provided in K.S.A. 74-49,117 and amend-
21       ments thereto, the annual spouse's benefit shall be payable in equal shares
22       to such children and each child's share shall end on the last day of the
23       month in which such child attains the age of 18 years or dies, whichever
24       occurs earlier or in which such child attains the age of 23 years, if such
25       child is a full-time student as provided in K.S.A. 74-49,117 and amend-
26       ments thereto. Commencing on the effective date of this act, any child
27       who was receiving benefits pursuant to this section and who had such
28       benefits terminated by reason of such child's marriage, shall be entitled
29       to once again receive benefits pursuant to this section subject to the lim-
30       itations contained in this section, except that such child shall not be en-
31       titled to recover any benefits not received after the termination of benefits
32       by reason of such child's marriage but before the effective date of this
33       act.
34           (4) Any member who was employed for compensation by an em-
35       ployer other than the member's participating employer and whose disa-
36       bility was incurred in the course of such other employment shall not be
37       eligible for any of the benefits provided in subsection (1) or (3).
38           (5) If a member becomes totally and permanently disabled and no
39       benefits are payable under subsection (1), the sum of the member's ac-
40       cumulated contributions shall be paid to the member.
41           (6) Any member receiving benefits under this section shall submit to
42       medical examination, not   oftener more frequent than annually, by one or
43       more physicians or any other practitioners of the healing arts holding a

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  1       valid license issued by Kansas state board of healing arts, as the board of
  2       trustees may direct. If upon such medical examination, the examiner's
  3       report to the board states that the member is physically able and capable
  4       of resuming employment with the same or different participating em-
  5       ployer   from whose employment such member was employed prior to such
  6       member's disability, the disability benefits shall terminate. A member
  7       who has been receiving benefits under the provisions of this section and
  8       who returns to employment, as defined in subsection (4) of K.S.A. 74-
  9       4952 and amendments thereto, of a participating employer shall imme-
10       diately commence accruing service credit which shall be added to that
11       which has been accrued by virtue of previous service.
12           (7) Any member who has been receiving benefits under the provi-
13       sions of this section for a period of five years shall be deemed permanent
14       and shall not be subject to further medical examinations, except that if
15       the board of trustees shall have reasonable grounds to question whether
16       the member remains totally and permanently disabled, a further medical
17       examination or examinations may be required.
18           (8) Refusal or neglect to submit to examination as provided in sub-
19       section (6) shall be sufficient cause for suspending or discontinuing ben-
20       efit payments under this section and if such refusal or neglect shall con-
21       tinue for a period of one year, the member's rights in and to all benefits
22       under this system may be revoked by the board.
23           (9) In the event that a member becomes disabled and is eligible for
24       benefits provided in this section, such member shall be given participating
25       service credit for the entire period of such disability.
26           (10) Any member who is receiving benefits pursuant to this section
27       shall file annually a statement of earnings for the previous year in such
28       form and manner as the board shall prescribe. Any disability benefit paid
29       to a member entitled to such benefit pursuant to this section shall be
30       reduced by the board in an amount equal to a $1 reduction in such benefit
31       for every $2 of earnings of such member which were earned during the
32       previous year while such member was disabled. Such reduction shall ap-
33       ply only to a member's earnings which exceed $10,000.
34           (11) Any benefits provided pursuant to this section and any partici-
35       pating service credit given pursuant to subsection (9) shall terminate upon
36       the earliest date such member is eligible for retirement upon attainment
37       of the normal retirement date as provided in K.S.A. 74-4964a and amend-
38       ments thereto.
39           (12) Any member who has received benefits under the provisions of
40       this section for a period of five years or more immediately preceding
41       retirement shall have such member's final average salary adjusted upon
42       retirement by the actuarial salary assumption rates in existence during
43       such period. Effective July 1, 1993, each member's current annual rate

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  1       shall be adjusted upon retirement by 5% for each year of disability after
  2       July 1, 1993.
  3           (13) All payments due under this section to a minor shall be made to
  4       a legally appointed conservator of such minor.
  5           (14) The provisions of this section shall be effective on and after July
  6       1, 1989 and shall apply only to members who were appointed or employed
  7       prior to July 1, 1989, and who made an election pursuant to K.S.A. 74-
  8       4955a and amendments thereto; and persons appointed or employed on
  9       or after July 1, 1989.
10           (15) Any retirant who has been receiving benefits under the provi-
11       sions of this section and who returns to employment with the same or
12       different participating employer in the system shall be deemed no longer
13       retired.
14           Sec. 10. K.S.A. 1997 Supp. 74-4992 is hereby amended to read as
15       follows: 74-4992. (a) Any such member of the legislature or former mem-
16       ber of the legislature as described in K.S.A. 74-4991 and amendments
17       thereto shall become a member on entry date or upon filing with the
18       board an election to become or not to become a member of the system.
19       In the event that any such member of the legislature or former member
20       of the legislature fails to file the election to become a member of the
21       retirement system, it shall be presumed that such member of the legis-
22       lature or former member of the legislature has elected not to become a
23       member. The election to participate shall become effective immediately
24       upon making such election, if such election is made within 14 days of
25       taking the oath of office or, otherwise, on the first day of the first payroll
26       period of the first quarter following receipt of the election in the office
27       of the retirement system.
28           (b) Any member of the legislature who had attained membership in
29       the Kansas public employees retirement system prior to taking the oath
30       of office as a member of the legislature may elect not to participate in
31       the Kansas public employees retirement system for the purpose of service
32       as a member of the legislature. Any member of the legislature who is a
33       member of the retirement system on the effective date of this act and
34       was a member of the retirement system at the time of taking the oath of
35       office may elect not to participate in the retirement system for service as
36       a member of the legislature if such election is filed within the offices of
37       the system. Upon filing such election such member of the legislature shall
38       receive a refund of all contributions made to the retirement system by
39       filing a withdrawal application with the system.
40           (c) Any member of the legislature who elected not to participate in
41       the retirement system, and who is not a contributing member with any
42       other participating employer, may purchase such participating service by
43       making a single lump-sum payment in an amount determined by the

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  1       actuary using the then current rate of compensation and the actuarial
  2       assumptions and tables currently in use by the system.
  3           (d) Except as otherwise provided in this section, any member of the
  4       retirement system may purchase participating service credit for employ-
  5       ment service as described in this section, if first commenced prior to
  6       January 1, 1996, by electing to effect such purchase by means of having
  7       employee contributions as provided in K.S.A. 74-4919 and amendments
  8       thereto deducted from such member's compensation at a percentage rate
  9       equal to two times or three times the employee's rate of contribution as
10       provided in K.S.A. 74-4919 and amendments thereto for such periods of
11       service in lieu of a lump-sum amount as provided in this section. Such
12       deductions shall commence at the beginning of the quarter following such
13       election and shall remain in effect until all quarters of such service have
14       been purchased. Any person may make any such purchase as described
15       in this section, if first commenced in calendar year 1996 or thereafter, at
16       an additional rate of contribution, in addition to the employee's rate of
17       contribution as provided in K.S.A. 74-4919 and amendments thereto,
18       based upon the member's attained age at the time of purchase and using
19       actuarial assumptions and tables in use by the retirement system at such
20       time of purchase, for such periods of service, in lieu of a lump-sum
21       amount as provided in this section. Such additional rate of contribution
22       shall commence at the beginning of the quarter following such election
23       and shall remain in effect until all quarters of such service have been
24       purchased.
25           New Sec. 11. The retirement system for judges is a division of the
26       Kansas public employees retirement system created by K.S.A. 74-4903
27       and amendments thereto and is subject to the provisions of K.S.A. 74-
28       4901 et seq. and amendments thereto.
29           Sec. 12. K.S.A. 20-2601a and 74-4953 and K.S.A. 1997 Supp. 74-
30       4902, 74-4911, 74-4913, 74-4952, 74-4956, 74-4960, 74-4960a and 74-
31       4992 are hereby repealed.
32           Sec. 13. This act shall take effect and be in force from and after its
33       publication in the statute book.
34      
35