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Session of 2000
          HOUSE BILL No. 2664           By Kansas 2000 Select Committee           1-20          

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10             AN  ACT concerning retirement; relating to deferred compensation and
11             tax sheltered annuities; amending K.S.A. 72-8603, 75-5523, 75-5524
12             and 75-5529a and repealing the existing sections.
13      
14       Be it enacted by the Legislature of the State of Kansas:
15             Section  1. K.S.A. 72-8603 is hereby amended to read as follows: 72-
16       8603. (a) The board of education of any school district or the board of
17       trustees of any community junior college shall contract with any of its
18       employees so requesting, who request for reductions in compensation and
19       the contribution thereof for tax sheltered annuities as permitted under
20       the United States internal revenue code, for the benefit of such employ-
21       ees. Any employee desiring to contract under the provisions of this section
22       shall express his or her wishes in writing to his or her send written notice
23       of such employee's desire to contract under the provisions of this act to
24       such employee's employer within semiannual thirty-day periods in ac-
25       cordance with rules and regulations of such employer.
26             (b) The board of education of any school district or the board of trus-
27       tees of any community college may contribute to such employee's tax shel-
28       tered annuity an amount to match the employee's contribution as pro-
29       vided in subsection (a), except that any such contribution by such board
30       shall not exceed an amount equal to 1% of the employee's compensation.
31             Sec.  2. K.S.A. 75-5523 is hereby amended to read as follows: 75-
32       5523. (a) The director is authorized to establish a deferred compensation
33       plan in accordance with the federal revenue act of 1978, Public Law No.
34       95-600, subject to the approval of the secretary of administration. Such
35       plan shall be the Kansas public employees deferred compensation plan.
36       All powers and duties heretofore conferred by such plan upon the advi-
37       sory committee on deferred compensation are hereby transferred to the
38       director of personnel services or the director's designees.
39             (b) The director may enter into an agreement or agreements with
40       approved insurers or other contracting parties whereby benefits under
41       the Kansas public employees deferred compensation plan would be made
42       available to those participants who contract with the director for deferred
43       compensation under K.S.A. 75-5524, and amendments thereto. In addi-

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  1       tion, the director may enter into an agreement with one or more qualified
  2       private firms for consolidated billing services, participant enrollment serv-
  3       ices, participant accounts and other services related to the administration
  4       of the Kansas public employees deferred compensation plan.
  5             (c) Except as provided by K.S.A. 75-5524 and amendments thereto,
  6       no significant costs shall be incurred by the state as a result of the ad-
  7       ministration of this act unless such costs are recovered by charging and
  8       collecting a service charge from all participants and in addition thereto
  9       or in lieu thereof, where the director has entered into agreements with
10       one or more qualified private firms under subsection (b), are recovered
11       from such firms. The amount of any such significant costs incurred and
12       to be recovered by the state shall be determined by the director.
13             (d) Subject to the approval of the secretary of administration, the
14       director is authorized to negotiate and enter into contracts with qualified
15       insurers and other contracting parties for the purposes of establishing a
16       deferred compensation plan, including acquisition of actuarial and other
17       services necessary therefor. The director shall advertise for deferred com-
18       pensation proposals, shall negotiate with not less than three firms or other
19       contracting parties submitting such proposals, and shall select from
20       among those submitting such proposals the firm or firms or other con-
21       tracting party or parties to contract with for purposes of establishing a
22       deferred compensation plan. Contracts entered into under this act shall
23       not be subject to K.S.A. 75-3739 and amendments thereto.
24             Sec.  3. K.S.A. 75-5524 is hereby amended to read as follows: 75-
25       5524. (a) The director is authorized to enter into a voluntary agreement
26       with any employee whereby the director agrees to defer and deduct each
27       payroll period a portion of the employee's salary or compensation from
28       the state in accordance with the Kansas public employees deferred com-
29       pensation plan. Such agreement may require each participant to pay a
30       service charge to defray all or part of any significant costs incurred and
31       to be recovered by the state pursuant to subsection (c) of K.S.A. 75-5523,
32       as a result of the administration of this act. Pursuant to this act and such
33       agreements the director is authorized to deduct amounts authorized in
34       such agreements from the salary or compensation of such employee each
35       payroll period, as part of the system of regular payroll deduction.
36             (b) The minimum amount and the maximum amount which may be
37       deferred in any one payroll period shall be established by rules and reg-
38       ulations adopted under K.S.A. 75-5529.
39             (c) The state of Kansas shall contribute to the Kansas public employ-
40       ees deferred compensation plan on behalf of any employee who has en-
41       tered into an employee participation agreement as provided in this section
42       an amount to match the employee's contribution as provided in this sec-
43       tion, except that any such contribution by the state of Kansas shall not

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  1       exceed an amount equal to 1% of the employee's compensation. The Kan-
  2       sas public employees deferred compensation plan shall exist and be in
  3       addition to, and shall not be a part of any retirement or pension system
  4       for employees. The state shall not be responsible for any loss incurred by
  5       an employee under the Kansas public employees deferred compensation
  6       plan established and approved pursuant to this act.
  7             (d) Any amount of the employee's salary or compensation that is de-
  8       ferred under such authorized agreement shall continue to be included as
  9       regular compensation for all purposes of computing retirement and pen-
10       sion benefits earned by any such employee, but any sum deferred or
11       deducted shall not be subject to any state or local income taxes for the
12       year in which such sum is earned but shall be subject to applicable state
13       and local income taxes for the year in which such sum is received by the
14       employee.
15             (e) The director is hereby authorized to establish a deferred com-
16       pensation clearing fund in the state treasury in which shall be placed
17       temporarily all compensation deferred and deducted in accordance with
18       this act, as provided for in any agreement between an employee and the
19       director.
20             Sec.  4. K.S.A. 75-5529a is hereby amended to read as follows: 75-
21       5529a. Subject to the approval of the secretary of administration, the
22       director of accounts and reports may enter into agreements for the par-
23       ticipation of local governments of the state of Kansas, which are defined
24       as eligible employers by subsection (13) of K.S.A. 74-4902 and amend-
25       ments thereto, and their employees, as defined by subsection (14) of
26       K.S.A. 74-4902 and amendments thereto except that such employees
27       need not be employed by a participating employer under the Kansas
28       public employees retirement system, within the deferred compensation
29       plan for state employees established under K.S.A. 75-5523 and amend-
30       ments thereto. Such participation may include any such eligible employer
31       and employees when authorized by the governing body of the eligible
32       employer by ordinance or resolution. Such participation may include a
33       contribution by any such local government of the state of Kansas on behalf
34       of any employee who has entered into an employee participation agree-
35       ment pursuant to this section in an amount to match the employee's con-
36       tribution as provided in this section, except that any such contribution by
37       any such local government of the state of Kansas shall not exceed an
38       amount equal to 1% of the employee's compensation. Except for such
39       participation agreements, the director of accounts and reports or any
40       other state officer or employee shall not be involved nor incur any expense
41       in the administration of such plan as it applies to local governments or
42       their employees. 
43       Sec.  5. K.S.A. 72-8603, 75-5523, 75-5524 and 75-5529a are hereby

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  1       repealed.
  2        Sec.  6. This act shall take effect and be in force from and after July
  3       1, 2001, and its publication in the statute book.