Session of 2000
HOUSE BILL No. 2667
By Kansas 2000 Select Committee
1-20
10 AN ACT
concerning retirement; relating to optional defined contribu-
11 tion plan for certain
unclassified employees who are members of the
12 Kansas public
employees retirement system.
13
14 Be it enacted by the Legislature of the
State of Kansas:
15 Section
1. (a) The board of trustees of the Kansas public
employees
16 retirement system shall offer a defined
contribution retirement plan for
17 officers and employees in the unclassified
service under the Kansas civil
18 service act who are members of the Kansas
public employees retirement
19 system. The retirement plan shall qualify
as a defined contribution plan
20 under the federal internal revenue code of
1986, as amended. Except as
21 otherwise provided by law, participation in
the retirement plan offered
22 pursuant to this section shall be in lieu
of the Kansas public employees
23 retirement system as in effect prior to the
effective date of this act.
24 (b) Each current
officer or employee and each officer or employee
25 who first serves on or after the effective
date of this act shall elect to be
26 a member of the Kansas public employees
retirement system or to par-
27 ticipate in the retirement plan offered
pursuant to this section. The elec-
28 tion must be filed by October 1, 2001, for
current officers and employees
29 and within 90 days of first becoming a
member for officers and employees
30 who first serve on or after the effective
date of this act. Such election is
31 irrevocable. If such election is not filed
by the member, such member
32 shall be a member of the Kansas public
employees retirement system as
33 in effect prior to the effective date of
this act. Each officer or employee
34 who elects to participate in the defined
contribution retirement plan as
35 provided in this section who has accrued
service credit in the Kansas
36 public employees retirement system prior to
the effective date of this act,
37 for the purposes of determination of a
retirement benefit as provided in
38 K.S.A. 74-4915 and amendments thereto for
service prior to the effective
39 date of this act, shall have a final
average salary as provided in K.S.A. 74-
40 4902 and amendment thereto and years of
participating services deter-
41 mined as of the effective date of this act.
No participating service after
42 the effective date of this act shall affect
such determination.
43 (c) Officers or
employees who elect to participate in the defined con-
2
1 tribution retirement plan as provided
in this section shall contribute an
2 amount equal to 4% of such member's
compensation. The state of Kansas
3 shall contribute to each officer's or
employee's account an amount equal
4 to 4% of such officer's or member's
compensation for each payroll period.
5 An officer or employee may make
additional contributions to the plan
6 beyond the amounts provided by law,
except that the total annual con-
7 tributions by an officer or employee
in any calendar year shall not exceed
8 the maximum amount permitted for such
plans under the federal internal
9 revenue code of 1986, as amended.
Contributions shall not be subject to
10 taxation until distribution is actually
made or made available to the officer
11 or employee.
12 (d) Any officer
or employee serving prior to the effective date of this
13 act who: (A) Has not been granted a vested
retirement benefit in the
14 system as provided in K.S.A. 74-4917, and
amendments thereto; (B) is
15 participating in the defined contribution
plan provided by this act; (c) has
16 reached the early or normal retirement
dates as provided in K.S.A. 74-
17 4914, and amendments thereto; and (D) is
still an officer or employee at
18 that time; shall be eligible to receive a
retirement benefit based on such
19 officer's or member's years of service
notwithstanding the fact that such
20 officer or employee has not been granted a
vested retirement benefit as
21 provided in K.S.A. 74-4917, and amendments
thereto. Receipt of such
22 retirement benefit shall be as otherwise
provided by law.
23 (e) If an officer
or employee who elects to participate in the defined
24 contribution retirement plan offered
pursuant to this section has com-
25 pleted two years of credited service, such
officer or employee shall be
26 granted a vested retirement benefit in such
retirement plan.
27 (f) Any officer
or employee who elects to participate in the defined
28 contribution retirement plan offered
pursuant to this section shall be
29 eligible for the death and disability
benefit as provided in K.S.A. 74-4916,
30 and amendments thereto, and the death
benefit, optional death benefit
31 and the long-term disability benefit as
provided in K.S.A. 74-4927 and
32 amendments thereto. The cost of such
officer's or employee's participa-
33 tion shall be paid by the officer's or
employee's participating employer as
34 provided in K.S.A. 74-4927 and amendments
thereto.
35 (g) The board
shall administer the defined contribution retirement
36 plan offered pursuant to this section and
shall establish rules and regu-
37 lations for the administration of the
plan.
38 (h) The
provisions of this section shall not apply to members of the
39 Kansas police and firemen's retirement
system and the retirement system
40 for judges.
41 (i) The
provisions of this section shall be part of and supplemental to
42 the provisions of K.S.A. 74-4901 et
seq. and amendments thereto.
43 Sec. 2. This act shall
take effect and be in force from and after July
3
1 1, 2001, and its publication in the
statute book.