Session of 2000
HOUSE BILL No. 2668 By Kansas 2000 Select Committee 1-20

10 AN ACT concerning retirement; relating to defined contribution plan
11 for employees who are members of the Kansas public employees re-
12 tirement 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 who are members of the Kansas public employees
18 retirement system. The retirement plan shall qualify as a defined contri-
19 bution plan under the federal internal revenue code of 1986, as amended.
20 Participation in the retirement plan offered pursuant to this section shall
21 be in lieu of the Kansas public employees retirement system as in effect
22 prior to the effective date of this act.
23 (b) Each such officer or employee who is a member prior to the
24 effective date of this act shall elect to be a member of the Kansas public
25 employees retirement system or to participate in the retirement plan of-
26 fered pursuant to this section. The election must be filed by October 1,
27 2001. Such election is irrevocable. If such election is not filed by the
28 member, such member shall be a member of the Kansas public employ-
29 ees retirement system as in effect prior to the effective date of this act.
30 Each officer or employee who elects to participate in the defined contri-
31 bution retirement plan as provided in this section who has accrued service
32 credit in the Kansas public employees retirement system prior to the
33 effective date of this act, for the purposes of determination of a retirement
34 benefit as provided in K.S.A. 74-4915 and amendments thereto for service
35 prior to the effective date of this act, shall have a final average salary as
36 provided in K.S.A. 74-4902 and amendments thereto and years of partic-
37 ipating services determined as of the effective date of this act. No partic-
38 ipating service after the effective date of this act shall affect such
39 determination.
40 (c) Each officer or employee first employed on or after the effective
41 date of this act shall participate in the retirement plan offered pursuant
42 to this section.
43 (d) Members who elect to participate in the defined contribution re-

2
1 tirement plan as provided in this section and officers and employees first
2 employed on or after the effective date of this act shall contribute an
3 amount equal to 4% of such member's or officer's or employee's com-
4 pensation. The state of Kansas shall contribute to each member's or of-
5 ficer's or employee's account an amount equal to 4% of such member's
6 or officer's or employee's compensation for each payroll period. A mem-
7 ber or officer or employee may make additional contributions to the plan
8 beyond the amounts provided by law, except that the total annual con-
9 tributions by a member or officer or employee in any calendar year shall
10 not exceed the maximum amount permitted for such plans under the
11 federal internal revenue code of 1986, as amended. Contributions shall
12 not be subject to taxation until distribution is actually made or made
13 available to the member or officer or employee.
14 (e) Any officer or employee serving prior to the effective date of this
15 act who: (A) Has not been granted a vested retirement benefit in the
16 system as provided in K.S.A. 74-4917, and amendments thereto; (B) is
17 participating in the defined contribution plan provided by this act; (C)
18 has reached the early or normal retirement dates as provided in K.S.A.
19 74-4914, and amendments thereto; and (D) is still an officer or employee
20 at that time; shall be eligible to receive a retirement benefit based on
21 such officer's or employee's years of service notwithstanding the fact that
22 such officer or employee has not been granted a vested retirement benefit
23 as provided in K.S.A. 74-4917, and amendments thereto. Receipt of such
24 retirement benefit shall be as otherwise provided by law.
25 (f) If a member who elects to participate in the defined contribution
26 retirement plan offered pursuant to this section or if an officer or em-
27 ployee first employed after the effective date of this act has completed
28 two years of credited service, such member or officer or employee shall
29 be granted a vested retirement benefit in such retirement plan.
30 (g) Any member who elects to participate in the defined contribution
31 retirement plan offered pursuant to this section or any officer or em-
32 ployee first employed after the effective date of this act shall be eligible
33 for the death and disability benefit as provided in K.S.A. 74-4916, and
34 amendments thereto, death benefit, optional death benefit and long-term
35 disability benefit as provided in K.S.A. 74-4927 and amendments thereto.
36 The cost of such member's or officer's or employee's participation shall
37 be paid by such member's or officer's or employee's participating em-
38 ployer as provided in K.S.A. 74-4927 and amendments thereto.
39 (h) The board shall administer the defined contribution retirement
40 plan offered pursuant to this section and shall establish rules and regu-
41 lations for the administration of the plan.
42 (i) The provisions of this section shall not apply to members of the
43 Kansas police and firemen's retirement system and the retirement system

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1 for judges.
2 (j) The provision of this section shall be part of and supplemental to
3 the provisions of K.S.A. 74-4901 et seq. and amendments thereto.
4 Sec. 2. This act shall take effect and be in force from and after July
5 1, 2001, and its publication in the statute book.