Session of 1999
         
HOUSE BILL No. 2516
         
By Committee on Appropriations
          
2-17
          
  9             AN  ACT concerning the department of administration; relating to ad-
10             ministration of the deferred compensation plan for public officers and
11             employees; agreements for plan benefits; oversight committee com-
12             position; amending K.S.A. 75-5523 and K.S.A. 1998 Supp. 75-5529c
13             and repealing the existing sections.
14      
15       Be it enacted by the Legislature of the State of Kansas:
16             Section  1. K.S.A. 75-5523 is hereby amended to read as follows: 75-
17       5523. (a) The director is authorized to establish a deferred compensation
18       plan in accordance with the federal revenue act of 1978, Public Law No.
19       95-600, subject to the approval of the secretary of administration. Such
20       plan shall be the Kansas public employees deferred compensation plan.
21       All powers and duties heretofore conferred by such plan upon the advi-
22       sory committee on deferred compensation are hereby transferred to the
23       director of personnel services or the director's designees.
24             (b) The director may shall enter into an agreement or agreements
25       with two or more approved insurers or other contracting parties whereby
26       benefits under the Kansas public employees deferred compensation plan
27       would be are made available to those participants who contract with the
28       director for deferred compensation under K.S.A. 75-5524, and amend-
29       ments thereto. In addition, the director may enter into an agreement with
30       one or more qualified private firms for consolidated billing services, par-
31       ticipant enrollment services, participant accounts and other services re-
32       lated to the administration of the Kansas public employees deferred com-
33       pensation plan.
34             (c) No significant costs shall be incurred by the state as a result of
35       the administration of this act unless such costs are recovered by charging
36       and collecting a service charge from all participants and in addition
37       thereto or in lieu thereof, where the director has entered into agreements
38       with one two or more qualified private firms under subsection (b), are
39       recovered from such firms. The amount of any such significant costs in-
40       curred and to be recovered by the state shall be determined by the
41       director.
42             (d) Subject to the approval of the secretary of administration, the
43       director is authorized to negotiate and enter into contracts with qualified

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  1       insurers and other contracting parties for the purposes of establishing a
  2       deferred compensation plan, including acquisition of actuarial and other
  3       services necessary therefor. The director shall advertise for deferred com-
  4       pensation proposals, shall negotiate with not less than three firms or other
  5       contracting parties submitting such proposals, and shall select from
  6       among those submitting such proposals the firm or firms or other con-
  7       tracting party or parties to contract with for purposes of establishing a
  8       deferred compensation plan. Contracts entered into under this act shall
  9       not be subject to K.S.A. 75-3739, and amendments thereto.
10             (e) As soon as practicable after the effective date of this act, the di-
11       rector shall enter into a contract with one or more additional approved
12       insurers or other contracting parties whereby benefits under the deferred
13       compensation plan are made available to those participants who contract
14       with the director for deferred compensation under K.S.A. 75-5524, and
15       amendments thereto.
16             Sec.  2. K.S.A. 1998 Supp. 75-5529c is hereby amended to read as
17       follows: 75-5529c. (a) The secretary of administration shall establish an
18       administrative oversight committee on deferred compensation. In addi-
19       tion to such persons as are appointed by the secretary of administration,
20       the chief investment officer of the board of trustees of the Kansas public
21       employees retirement system shall be a member of the administrative over-
22       sight committee on deferred compensation. The members of the admin-
23       istrative oversight committee on deferred compensation shall meet at
24       least once each calendar quarter. The members of the administrative
25       oversight committee on deferred compensation shall receive no compen-
26       sation or expenses for service on the committee.
27             (b) The administrative oversight committee on deferred compensa-
28       tion shall:
29             (1) Advise and consult on the implementation and administration of
30       the provisions of the Kansas public employees deferred compensation act
31       and the deferred compensation plan;
32             (2) evaluate the program operations with respect to customer service
33       and operations;
34             (3) evaluate investment performance as it relates to comparable
35       options;
36             (4) evaluate program operations with respect to federal and state stat-
37       utes and contractual requirements and as compared to other deferred
38       compensation programs;
39             (5) review the overall administration of each agreement entered into
40       under K.S.A. 75-5523 and amendments thereto for the deferred com-
41       pensation plan and the overall performance by the qualified insurer or
42       other qualified contracting party entering into such agreement;
43             (6) review the investment management fees under the deferred com-

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  1       pensation plan for reasonableness compared with other deferred com-
  2       pensation programs;
  3             (7) review audits conducted on the deferred compensation plan and
  4       other reports reviewing program operations thereunder to assure oper-
  5       ations are following all applicable statutes and rules and regulations and
  6       to assure coverage of appropriate deferred compensation plan accounts
  7       of participants under the Kansas life and health insurance guaranty as-
  8       sociations act;
  9             (8) review overall performance of the contracting party under the
10       agreement entered into under K.S.A. 75-5523 and amendments thereto
11       for the deferred compensation plan that is in effect on the effective date
12       of this act and determine whether or not competition should be initiated
13       with other qualified insurers and other qualified contracting parties to
14       enter into such agreements;
15             (9) review current procedures for handling complaints about the de-
16       ferred compensation plan to ensure customer satisfaction and sharing of
17       complaint information;
18             (10) evaluate on a continuing basis the need to provide participants
19       with information regarding the provisions, requirements and procedures
20       under the deferred compensation plan; and
21             (11) periodically prepare and present reports of the findings and re-
22       sults of the activities of the committee to the secretary of administration,
23       the governor and the legislature, as appropriate. 
24       Sec.  3. K.S.A. 75-5523 and K.S.A. 1998 Supp. 75-5529c are hereby
25       repealed.
26        Sec.  4. This act shall take effect and be in force from and after its
27       publication in the statute book.