An Act concerning retirement and pensions;
relating to the Kansas public employees re-
tirement system and systems thereunder; making
appropriations for the fiscal year end-
ing June 30, 1999, for the Kansas public
employees retirement system; amending K.S.A.
20-2601a, 20-2606, as amended by section 17 of
1998 Senate Bill No. 382, 20-2609, 20-
2610, 20-2620, as amended by section 20 of
1998 Senate Bill No. 382, 72-5501, as
amended by section 22 of 1998 Senate Bill No.
382, 74-4919i, as amended by section
45 of 1998 Senate Bill No. 382, 74-4924 and
74-4955a and K.S.A. 1998 Supp. 20-2601,
as amended by section 15 of 1998 Senate Bill
No. 382, 46-2201, 74-4902, as amended
by section 26 of 1998 Senate Bill No. 382,
74-4904, 74-4905, 74-4907, 74-4908, 74-
4910, 74-4911, as amended by section 28 of
1998 Senate Bill No. 382, 74-4913, as
amended by section 33 of 1998 Senate Bill No.
382, 74-4914, 74-4914e, 74-4917, 74-
4919a, as amended by section 38 of 1998 Senate
Bill No. 382, 74-4919h, as amended
by section 44 of 1998 Senate Bill No. 382,
74-4919n, as amended by section 49 of 1998
Senate Bill No. 382, 74-4919p, 74-4919q,
74-4920, 74-4921, 74-4927, as amended by
section 53 of 1998 Senate Bill No. 382,
74-4936a, as amended by section 63 of 1998
Senate Bill No. 382, 74-4937, 74-4939,
74-4952, as amended by section 65 of 1998
Senate Bill No. 382, 74-4956, as amended by
section 68 of 1998 Senate Bill No. 382,
74-4957, 74-4957a, 74-4960, as amended by
section 72 of 1998 Senate Bill No. 382, 74-
4960a, as amended by section 73 of 1998 Senate
Bill No. 382, 74-4963, as amended by
section 75 of 1998 Senate Bill No. 382,
74-4963a, as amended by section 76 of 1998
Senate Bill No. 382, 74-4966, 74-4988, 74-4990
and 74-4992 as amended by section 87
of 1998 Senate Bill No. 382, and repealing the
existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 1997 Supp. 20-2601, as amended by
section 15 of
1998 Senate Bill No. 382, is hereby amended to read as follows:
20-2601.
As used in K.S.A. 20-2601 et seq. and amendments thereto, unless
the
context otherwise requires:
(a) ``Fund'' means the Kansas public employees retirement fund
cre-
ated by K.S.A. 74-4921 and amendments thereto;
(b) ``retirement system for judges'' means the system provided
for in
the acts contained in article 26 of chapter 20 of the Kansas
Statutes An-
notated and any acts amendatory thereof or supplemental
thereto;
(c) ``judge'' means any duly elected or appointed justice of
the su-
preme court, judge of the court of appeals or judge of any district
court
of Kansas, who serves in such capacity on and after the effective
date of
this act and commencing with the first day of the first payroll
period of
the fiscal year ending June 30, 1994, any district magistrate judge
who
makes an election as provided in K.S.A. 20-2620 and amendments
thereto
or who is elected or appointed on or after July 1, 1993;
(d) ``member'' means a judge who is making the required
contribu-
tions to the fund, or any former judge who has made the required
con-
tributions to the fund and has not received a refund of the judge's
ac-
cumulated contributions;
(e) ``prior service'' means all the periods of time any judge
has served
in such capacity prior to the effective date of this act except
that district
magistrate judges who have service credit under the Kansas public
em-
ployees retirement system must make application to the board and,
sub-
ject to the provisions of section 83 and amendments thereto, make
pay-
ment as required by the board to transfer service credit from the
Kansas
public employees retirement system to the retirement system for
judges;
(f) ``current service'' means the period of service any judge
serves in
such capacity from and after the effective date of this act;
(g) ``military service'' means service of any judge for which
retirement
benefit credit must be given as provided in the uniformed services
em-
ployment and reemployment rights act of 1994, as in effect on July
1,
1998;
(h) ``total years of service'' means the total number of years
served as
a judge, including prior service, military service and current
service as
defined by this section, computed to the nearest quarter;
(i) ``salary'' means the statutory salary of a judge;
(j) ``final average salary'' means that determined as provided
in sub-
section (b) of K.S.A. 20-2610 and amendments thereto;
(k) ``beneficiary'' means any natural person or persons or
estate des-
ignated by a judge in the latest designation of beneficiary
received in the
retirement system office to receive any benefits as provided for by
this
act. Except as provided in subsection (n), if there is no named
beneficiary
living at the time of the judge's death, any benefits provided for
by this
act shall be paid to: (1) The judge's surviving spouse; (2) the
judge's
dependent child or children; (3) the judge's dependent parent or
parents;
(4) the judge's nondependent child or children; (5) the judge's
nonde-
pendent parent or parents; or (6) the estate of the deceased
member; in
the order of preference as specified in this subsection.
Any payment made to a named beneficiary shall be a full discharge and
release to the system from any further claims. Any payment made to a beneficiary
as provided in clauses (1), (2), (3), (4), (5) or (6) of this
subsection, as determined by the board, shall be a full discharge and release to the
system from any further claims. Whenever any payment is payable to more
than one ben- eficiary such payment shall be made to such beneficiaries
jointly. Any benefits payable to a beneficiary or beneficiaries who are
minor children or incompetent persons shall be made in the name of the
beneficiary or beneficiaries and delivered to the lawfully appointed
conservator of such beneficiaries who was nominated by will or as otherwise
provided by law, except that in those cases where the benefit involves only
the payment of the judge's accumulated contributions with interest as
provided by this act in an amount not to exceed $500, the board is hereby
authorized in its discretion without the appointment of a conservator or
the giving of a bond to pay such amount as is due to the minor or minors
themselves, any payment so made shall be a full discharge and release
to the system from any further claims. Designations of
beneficiaries by a member who
is a member of more than one retirement system made on or after
July
1, 1987, shall be the basis of any benefits payable under all
systems unless
otherwise provided by law;
(l) ``annuity'' means a series of equal monthly payments,
payable at
the end of each calendar month during the life of a retired judge,
of
which payments the first payment shall be made as of the end of
the
calendar month in which such annuity was awarded and the last
payment
shall be at the end of the calendar month in which such judge dies.
The
first payment shall include all amounts accrued since the effective
date
of the award of annuities, including a pro rata portion of the
monthly
amount of any fraction of a month elapsing between the effective
date of
such annuity and the end of the calendar month in which such
annuity
began;
(m) ``board'' means the board of trustees of the Kansas public
em-
ployees retirement system;
(n) ``trust'' means an express trust created by any trust
instrument,
including a will, and designated by a member to receive benefits
and other
amounts payable under K.S.A. 20-2607, 20-2610a and 20-2612, and
amendments thereto, instead of a beneficiary. A designation of a
trust
shall be filed with the board. If there is a designated trust at
the time of
the member's death, all benefits and other amounts payable under
K.S.A.
20-2607, 20-2610a and 20-2612, and amendments thereto, shall be
paid
to the trust instead of the member's beneficiary. If no will is
admitted to
probate within six months after the death of the member or no
trustee
qualifies within such six months or if the designated trust fails,
for any
reason whatsoever, any benefits and other amounts payable under
K.S.A.
20-2607, 20-2610a and 20-2612, and amendments thereto, shall be
paid
to the member's beneficiary and any payments so made shall be a
full
discharge and release to the retirement system for judges from any
fur-
ther claims;
(o) ``accumulated contributions'' means the sum of all
contributions
by a member to the retirement system for judges which are credited
to
the member's account, with interest allowed thereon after June 30,
1982;
(p) ``federal internal revenue code'' means the federal
internal reve-
nue code of 1954 or 1986, as in effect on July 1, 1998, and as
applicable
to a governmental plan; and
(q) except as otherwise provided in K.S.A. 20-2601 et seq.
and
amendments thereto, words and phrases used in K.S.A. 20-2601 et
seq.
and amendments thereto shall have the same meanings ascribed to
them
as are defined in K.S.A. 74-4902 and amendments thereto.
Sec. 2. K.S.A. 20-2601a is hereby amended to read as
follows: 20-
2601a. (a) On and after July 1, 1975, the Kansas judges retirement
board
established pursuant to K.S.A. 20-2604 and amendments
thereto shall be
and is hereby abolished, and on saidsuch
date, except as otherwise pro-
vided in this act, all of the powers, duties and functions of said
Kansas
judges retirement board, whether in its capacity as that board
pursuant
to K.S.A. 20-2604 and amendments thereto or in its capacity
as the Kansas
official court reporters retirement board pursuant to K.S.A.
20-2704, shall
be and are hereby transferred to and conferred and imposed upon
the
board of trustees of the Kansas public employees retirement
system.
(b) Except as otherwise provided in this act, the board of
trustees of
the Kansas public employees retirement system shall be the
successor in
every way to the powers, duties and functions of the Kansas judges
re-
tirement board, whether in its capacity as that board pursuant to
K.S.A.
20-2604 and amendments thereto or in its capacity as the
Kansas official
court reporters retirement board pursuant to K.S.A. 20-2704, in
which
the same were vested prior to July 1, 1975. Every act performed in
the
exercise of such powers, duties and functions by or under the
authority
of the board of trustees of the Kansas public employees retirement
system
shall be deemed to have the same force and effect as if performed
by the
Kansas judges retirement board in which such powers, duties and
func-
tions were vested prior to July 1, 1975.
(c) On and after July 1, 1975, whenever the Kansas judges
retirement
board, or words of like effect, is referred to or designated by a
statute or
contract or other document, such reference or designation shall
be
deemed to apply to the board of trustees of the Kansas public
employees
retirement system.
(d) On and after July 1, 1975, whenever the Kansas official
court
reporters retirement board, or words of like effect, is referred to
or des-
ignated by a statute or contract or other document, such reference
or
designation shall be deemed to apply to the board of trustees of
the
Kansas public employees retirement system.
(e) The board of trustees of the Kansas public employees
retirement system shall adopt rules and regulations necessary for the
administration of the retirement system for judges and for the transaction of
business consistent with law. All rules or regulations of the Kansas
judges retire-
ment board in existence on July 1, 1975, whether adopted when
acting
as that board pursuant to K.S.A. 20-2604 and amendments
thereto or
when acting as the Kansas official court reporters retirement board
pur-
suant to K.S.A. 20-2704, shall continue in force and effect and
shall be
deemed to be duly adopted rules or regulations of the board of
trustees
of the Kansas public employees retirement system, until
revised,
amended, revoked or nullified pursuant to law.
(f) All decisions and determinations of the Kansas judges
retirement
board in effect on July 1, 1975, whether made when acting as that
board
pursuant to K.S.A. 20-2604 and amendments thereto or when
acting as
the Kansas official court reporters retirement board pursuant to
K.S.A.
20-2704, shall continue in force and effect and shall be deemed to
be
decisions and determinations of the board of trustees of the Kansas
public
employees retirement system, until revised, amended, revoked or
nulli-
fied pursuant to law.
Sec. 3. K.S.A. 20-2606, as amended by section 17 of 1998
Senate Bill
No. 382, is hereby amended to read as follows: 20-2606. (a) Any
judge
whose service is terminated prior to retirement, for any cause
other than
death, may, upon written request to the board
and after 30 days after such termination, may have returned the total amount
of accumulated
contributions which the judge has made to the fund after the
retirement
system for judges has a reasonable time to process the application
for
withdrawal. The return of accumulated contributions to a judge
shall pre-
clude that judge from any benefits under the retirement system for
judges
unless and until that judge again serves in such capacity.
(b) Any incumbent judge over 70 years of age with a total
service of
at least eight years at the time the judge's present term of office
expires,
or at the time of retirement if the judge retires before the end of
the
judge's present term, shall receive retirement annuities as
provided in
K.S.A. 20-2608, 20-2609 and 20-2610, and any amendments thereto,
un-
less the judge requests the return of accumulated contributions
under
this section.
(c) In case any judge, who has had such judge's accumulated
contri-
butions returned under this section, serves again in such capacity,
such
judge may return, subject to the provisions of section 83 and
amendments
thereto, the amount refunded under this section without interest or
pen-
alty and regain such judge's original status under the retirement
system
for judges.
(d) Subject to the provisions of section 83 and amendments
thereto,
any member of the retirement system for judges who was previously
a
member of the Kansas public employees retirement system or the
Kansas
police and firemen's retirement system and who forfeited service
credit
under either of those systems by reason of termination of
employment
and withdrawal of their contributions to that system, may elect to
pur-
chase service credit for the previously forfeited service credit by
means
of having employee contributions as provided in K.S.A. 20-2603
and amendments thereto deducted from such judge's compensation at an
ad- ditional rate of contribution, based upon such judge's attained
age at the time of purchase and using actuarial assumptions and tables in
use by the retirement system at such time of purchase for such periods of
service. Such additional rate of contribution shall commence at the
beginning of the quarter following such election and shall remain in effect
until all of the full quarters of such service have been purchased. Such
member may purchase such service by means of a single lump-sum payment
andin lieu of employee contributions as provided in this subsection.
Such service
shall be recredited to that system. The amount of the lump-sum
payment
shall be determined by the actuary using the member's then current
an-
nual rate of compensation and, the
actuarial assumptions and tables then
currently in use by that retirement system and the judge's
attained age.
Sec. 4. K.S.A. 20-2609 is hereby amended to read as
follows: 20-
2609. (a) Any judge who has become permanently physically or
mentally
disabled and who is not entitled to retire under K.S.A. 20-2608
and
amendments thereto may, upon being found so disabled by the
supreme
court, retire under this section, and upon such retirement such
judge
shall be entitled to receive an annuity, each monthly payment of
which
shall be in an amount equal to 3.5% of the final average salary of
the
judge, determined as provided in subsection (b) of K.S.A. 20-2610
and
amendments thereto, multiplied by the number of total years of
service,
but for any judge who becomes disabled as provided in this
section on or after July 1, 1998, such monthly benefits shall be at least
25%50% but
shall not exceed 70% of the final average salary of the judge,
determined
as provided in subsection (b) of K.S.A. 20-2610 and amendments
thereto.
(b) Any judge, or the conservator of any judge, desiring to
retire un-
der the provisions of this section shall file an application for
such retire-
ment with the clerk of the supreme court, which application shall
be in
such form and contain such information as the supreme court shall
re-
quire. The court may require such judge to be examined by a
physician
appointed by the court and may require such other evidence and
proof
of disability as it deems necessary to reach a determination as to
whether
such judge is so permanently disabled. If the supreme court shall
deter-
mine that any such judge is so permanently disabled it shall
promptly
notify the board and thereupon such judge shall be placed on
retirement
by the board and monthly receive the retirement annuity as provided
in
this section.
(c) Any judge receiving an annuity under the provisions of
this section
shall be considered an active judge for the purposes of K.S.A.
20-2608
and amendments thereto and shall, upon reaching age 65 or upon
making
application for retirement, have such judge's retirement under this
sec-
tion terminated and such judge shall be placed on retirement under
the
provisions of K.S.A. 20-2608 and amendments thereto.
(d) In the event that a judge eligible for a disability
annuity authorized
by this section shall be disabled for a period of five years or
more im-
mediately preceding retirement, such judge's final average salary
shall be
adjusted upon retirement by the actuarial salary assumption rates
in ex-
istence during such period of disability. Effective July 1, 1993,
such
judge's final average salary shall be adjusted upon retirement by
5% for
each year of disability after July 1, 1993, but before July 1,
1998. Effective July 1, 1998, such judge's final average salary shall be
adjusted upon retirement by an amount equal to the lesser of: (1) The
percentage in- crease in the consumer price index for all urban consumers as
published by the bureau of labor statistics of the United States
department of labor minus 1%; or (2) four percent per annum, measured from the month
the disability occurs to the month that is two months prior to the
month of retirement, for each year of disability after July 1,
1998.
(e) The provisions of law in effect on the retirement date of
a judge
under the retirement system for judges shall govern the retirement
ben-
efit payable to the judge, any joint annuitant and any
beneficiary.
Sec. 5. K.S.A. 20-2610 is hereby amended to read as
follows: 20-
2610. (a) (1) A judge who retires under K.S.A. 20-2608, and
amendments
thereto, shall be entitled to receive an annual annuity
payable in monthly amounts subject to subsection (b), each monthly
paymentsuch annual annuity of which shall be in an amount equal to the total of
5% of the
final average salary of the judge, determined as provided in
subsection
(b), multiplied by the number of the judge's years of service up to
10
years, and 3.5% of the final average salary of the judge,
determined as
provided in subsection (b), multiplied by the number of the judge's
years
of service in excess of 10 years, but such monthly
benefitsannual annuity
shall not exceed 70% of the final average salary of such judge,
determined
as provided in subsection (b). A judge who retires under K.S.A.
20-2608
and amendments thereto, and who became a member of the system
after
June 30, 1987, shall be entitled to receive an annual
annuity payable in monthly amounts subject to subsection (b), each
monthly paymentsuch annual amount of which shall be in an amount equal to the
total of 3.5%
of the final average salary of the judge, determined as provided in
sub-
section (b), multiplied by the number of the judge's years of
service, but
such monthly benefitsannual annuity shall
not exceed 70% of the final
average salary of the judge, determined as provided in subsection
(b).
(2) For purposes of this subsection, the date of membership
for a district magistrate judge who became a member of the system as
provided by K.S.A. 20-2620 and amendments thereto and who purchased
service as provided in subsection (c) of K.S.A. 20-2620 and amendments
thereto shall be the day such district magistrate judge became a
district magistrate judge and if such district magistrate judge's membership date as
deter- mined in this subsection is earlier than July 1, 1987, such
district mag- istrate judge shall be entitled to the 5% of final average
salary calculation for up to 10 years of service as provided in this subsection.
Any additional cost associated with the provisions of this subsection shall be
paid by such district magistrate judge by means of a single lump-sum payment
or equal annual payments for not to exceed five years. The lump-sum or
annual payments shall be determined by the system's actuary by using
the mem- ber's final average salary at the time of application, actuarial
assumptions and tables currently in use by the system and the member's
attained age. No participating employer shall pay all or any part of any cost
associated with the provisions of this subsection.
(b) For any judge who retires under K.S.A. 20-2608 or 20-2609,
and
amendments thereto, on or after July 1, 1975, the annuity shall be
based
on the final average salary of such judge as provided in this
subsection.
The final average salary of a judge who becomes permanently
physically
or mentally disabled and who is retired under K.S.A. 20-2608 or
20-2609,
and amendments thereto, shall be determined as if such judge had
retired
on the date such judge became permanently physically or mentally
disa-
bled. The final average salary of a former judge whose service is
termi-
nated without retiring and who later retires under K.S.A. 20-2608,
and
amendments thereto, shall be determined as if such former judge
had
retired at the time such service was terminated.
In the case of judges who retire on or after July 1, 1993, the
final
average salary shall mean the average highest annual salary paid to
the
judge for any three years of the last 10 years of service as a
judge im-
mediately preceding retirement or termination of employment, or if
serv-
ice as a judge is less than three years, then the final average
salary shall
be the average annual salary paid to the judge during the full
period of
service as a judge, or if service as a judge is less than one year,
then the
final average salary shall be computed by multiplying the amount
of
monthly salary such judge was receiving at the time of retirement
by 12.
(c) The provisions of law in effect on the retirement date of
a judge
under the retirement system for judges shall govern the retirement
ben-
efit payable to the judge, any joint annuitant and any
beneficiary.
(d) A judge who retires under K.S.A. 20-2608, and
amendments thereto, and who, after such retirement, again is appointed or
elected as a judge, shall have the judge's retirement annuity suspended as
provided in this subsection. Such judge shall become an active member and
make employee contributions to the system and receive service credit
for any service after the date of commencement of service in such
position. Upon again retiring, any credited service such member subsequently
accrues shall be added to all previous service and the retirement
annuity shall be recalculated in accordance with the provisions of this
section.
Sec. 6. K.S.A. 20-2620, as amended by section 20 of 1998
Senate Bill
No. 382, is hereby amended to read as follows: 20-2620. (a)
Except as otherwise provided, each district magistrate judge holding
such position
on the effective date of this act may become a member of the
retirement
system for judges on the first day of the payroll period of the
fiscal year
ending June 30, 1994, only by filing with the board of trustees of
the
Kansas public employees retirement system on or before the first
day of
the payroll period of the fiscal year ending June 30, 1994, a
written elec-
tion to become a member of the system. Failure to file such
written
election shall be presumed to be an election not to become a member
of
the system. Such election, whether to become a member or not to
be-
come a member, shall be irrevocable. In addition, any such district
mag-
istrate judge who makes the election previously provided in this
section,
may elect to transfer such district magistrate judge's service
credit from
the Kansas public employees retirement system as provided in
subsection
(e) of K.S.A. 20-2601 and amendments thereto and subsection (c).
The date of membership for a district magistrate judge who became a
member of the system as provided in this section and who purchased
service as provided in subsection (c) shall be the day that such district
magistrate judge became a district magistrate judge. Such district
magistrate judge shall be subject to the provisions of subsection (a)(2) of
K.S.A. 20-2610 and amendments thereto.
(b) Each person who becomes a district magistrate judge on or
after
the effective date of this act shall become a member of the
retirement
system for judges on the first day such person holds the position
of district
magistrate judge.
(c) The board of trustees of the Kansas public employees
retirement
system shall transfer to the credit of the district magistrate
judge under
the retirement system for judges such amounts as may be presently
cred-
ited to a district magistrate judge's account for contribution
under the
Kansas public employees retirement system and an equivalent amount
to
the employer's account for contributions for such district
magistrate judge
whenever an application for conversion of service under the Kansas
public
employees retirement system is received from a district magistrate
judge.
Subject to the provisions of section 83 and amendments thereto,
any
district magistrate judge may purchase such service by electing
such pur-
chase prior to retirement by means of a single lump-sum payment
or
equal annual payments for not to exceed five years. The lump-sum
or
annual payments shall be determined by the system's actuary by
using
the member's final average salary at the time of application,
actuarial
assumptions and tables currently in use by the system and the
member's
attained age.
Sec. 7. K.S.A. 1997 Supp. 46-2201 is hereby amended to
read as
follows: 46-2201. (a) On January 1, 1993, there is hereby created
the joint
committee on pensions, investments and benefits which shall be
com-
posed of five senators and eight members of the house of
representatives.
The five senate members shall be the chairperson of the standing
com-
mittee on ways and means of the senate, or a member of such
committee
appointed by the chairperson, two members appointed by the
president
and two members appointed by the minority leader. The eight
represen-
tative members shall be the chairperson of the standing committee
on
appropriations of the house of representatives, or a member of such
com-
mittee appointed by the chairperson, four members appointed by
the
speaker and three members appointed by the minority leader.
(b) All members of the joint committee on pensions,
investments and
benefits shall serve for terms ending on the first day of the
regular leg-
islative session in odd-numbered years. After June 30 in
odd-numbered
years, the chairperson shall be one of the representative members
of the
joint committee selected by the speaker and the vice-chairperson
shall
be one of the senate members selected by the president. After June
30
in even-numbered years, the chairperson shall be one of the senate
mem-
bers of the joint committee selected by the president and the
vice-chair-
person shall be one of the representative members of the joint
committee
selected by the speaker. The chairperson and vice-chairperson of
the joint
committee shall serve in such capacities until July 1 of the
ensuing year.
The vice-chairperson shall exercise all of the powers of the
chairperson
in the absence of the chairperson.
(c) The joint committee on pensions, investments and benefits
shall
meet at any time and at any place within the state on call of the
chair-
person. Members of the joint committee shall receive compensation
and
travel expenses and subsistence expenses or allowances as provided
in
K.S.A. 75-3212 and amendments thereto when attending meetings
of
such committee authorized by the legislative coordinating
council.
(d) In accordance with K.S.A. 46-1204 and amendments thereto,
the
legislative coordinating council may provide for such professional
services
as may be requested by the joint committee on pensions, investments
and
benefits.
(e) The joint committee on pensions, investments and benefits
may
introduce such legislation as deemed necessary in performing such
com-
mittee's functions.
(f) The joint committee on pensions, investments and benefits
shall:
(1) Monitor, review and make recommendations regarding
invest-
ment policies and objectives formulated by the board of trustees of
the
Kansas public employees retirement system;
(2) review and make recommendations relating to benefits for
mem-
bers under the Kansas public employees retirement system;
(3) consider and make recommendations to the standing
committee
of the senate specified by the president of the senate relating to
the
confirmation of members of the board of trustees of the Kansas
public
employees retirement system appointed pursuant to K.S.A. 74-4905
and
amendments thereto. On and after July 1, 1993, the information
provided
by the Kansas bureau of investigation or other criminal justice
agency
pursuant to subsection (h) of K.S.A. 74-4905 and amendments
thereto
relating to the confirmation of members of the board to the
standing
committee of the senate specified by the president shall be
forwarded by
the Kansas bureau of investigation or such other criminal justice
agency
to such joint committee for such joint committee's consideration
and
other than conviction data, shall be confidential and shall not be
disclosed
except to members and employees of the joint committee as necessary
to
determine qualifications of such member. The committee, in
accordance
with K.S.A. 75-4319 and amendments thereto shall recess for a
closed or
executive meeting to receive and discuss information received by
the
committee pursuant to this subsection; and
(4) review and make recommendations to the legislature by the
first
day of legislative session commencing in 1997 relating to the
implemen-
tation of a permanent policy regarding adjustments in retirement
benefit
payments to retirants and disabled members. Such
recommendations
should include a review of cost-of-living adjustments, the shared
earnings
proposal presented to the 1996 legislature and other mechanisms for
pre-
funding adjustments in retirement benefit payments to retirants and
dis-
abled members as an alternative to annual cost-of-living
adjustments. In
conducting such review the committee may utilize legislative staff,
Kansas
public employees retirement system staff, the Kansas public
employees
retirement system actuary and other consultants. Any
recommendations
shall include actuarially based cost estimates, including an
assessment of
the impact on the Kansas public employees retirement system
fund's
unfunded actuarial liability; and
(5) review and make recommendations relating to inclusion
of city and county correctional officers as eligible members of the
Kansas police and firemen's retirement system.
Sec. 8. K.S.A. 72-5501, as amended by section 22 of 1998
Senate Bill
No. 382, is hereby amended to read as follows: 72-5501. As used in
this
act, unless the context otherwise requires:
(a) ``Retirement system'' means the state school retirement
system;
(b) ``board'' means the board of trustees of the Kansas public
em-
ployees retirement system;
(c) ``school year'' means either the twelve-month period
beginning on
September first, or the legal school term during such period. In
case of
doubt the board shall decide what constitutes a school year. The
board
shall not give credit for a school year that represents less than
140 days,
except that the board may give credit for a school year if not less
than 80
days of actual service has been rendered and if continuance in
school
service was prevented by illness or other emergency beyond the
control
of the person entitled to such credit. No person shall receive
credit for
more than one school year during any twelve-month period beginning
on
September 1. The board shall give credit for 1/2 of a school year
for 1/2
school year of continuous full-time service;
(d) ``school employees'' means persons who have performed or
who
shall hereafter perform school services as classroom teachers,
adminis-
trators, supervisors, librarians, nurses, clerks, janitors or in
any other full-
time capacity in the public schools, area vocational-technical
schools or
community junior colleges of the state of Kansas and who are
citizens of
the United States and school employees shall include: (1) Persons
who
have performed service as a county superintendent of public
instruction
or as an employee appointed by and under the supervision of a
county
superintendent; (2) persons who have performed service as a state
su-
perintendent of public instruction or as an employee appointed by
and
under supervision of a state superintendent; (3) persons who have
per-
formed services as an employee appointed by the former state board
for
vocational education, except that prior to the time of accepting
such em-
ployment by such county superintendent, state superintendent or
state
board for vocational education such employees had performed
school
service in Kansas as a teacher, principal, supervisor, or
superintendent;
(4) persons who are employees appointed by and under the
supervision
of the constitutional state board of education, including those
employees
transferred to the state department of education at its inception
in January
of 1969, and who prior to the time of accepting such employment by
the
state board of education had performed school service in Kansas as
a
teacher, principal, supervisor, or superintendent; (5) the
commissioner of
education if such commissioner exercises an irrevocable option to
be cov-
ered by the state school retirement system in lieu of being covered
by
the Kansas public employees retirement system, which option shall
be
exercised by written notice of the commissioner of education at the
time
of appointment. Such notice shall be directed to the state school
retire-
ment board and the board of trustees of the Kansas public
employees
retirement system; (6) all instructional employees for the school
for the
blind and such employees shall be excluded from participation in
any
other state retirement system; and (7) teachers and supervisors of
instruc-
tion at the state institutions under the management of the director
of
penal institutions and those under the management of the state
board of
social welfare which provide regular classroom instruction for
their in-
mates or patients if such instructional personnel have valid
certificates
issued by the state board of education, except that the provisions
of this
subsection shall not include such employees who have elected or
shall
elect, irrevocably, at the time of employment by the institution to
partic-
ipate in the Kansas public employees retirement system. The
term
``school employees'' shall not include any employee while a member
of a
separate retirement system operated by any board of education but
if any
such employee at any time becomes eligible to participate in the
state
retirement as provided by this act, the years such person served in
a school
system in Kansas which maintains a separate retirement system shall
be
included in determining years of service of such person under this
act.
An employee performing service in a school system maintaining its
own
separate retirement system in Kansas may qualify for service credit
in the
state system by discontinuing membership in such separate
retirement
system prior to the time of retirement and accepting a position
which is
covered by the state retirement system, and continuing in such
service
for at least one school year. Subject to the provisions of section
83 and
amendments thereto, such employee shall contribute to the state
retire-
ment system an amount of money equal to that which was deducted
from
such employee's salary for services rendered after September 1,
1941, in
the city maintaining its own retirement system and this amount
shall be
credited to the savings account of the employee. If such employee
was
for any reason excluded from participation in the separate
retirement
system, the board shall give credit for such nonmember service in
the
public schools in the city maintaining a separate retirement system
with-
out the required transfer of funds. After September 1, 1971, no
person
shall be deemed a school employee for the purposes of this act;
(e) ``school service'' means: (1) Service performed as a
school em-
ployee prior to September 1, 1941, if such years of service include
at least
six months during the years 1938-39 or 1939-40 or 1940-41; service
per-
formed by any employee who was not in school service in any of the
school
years from 1938 to 1941, but who reentered school service after
Septem-
ber 1, 1941, and continued in such service for at least five years;
all service
prior to September 1, 1941, of any annuitant who retired prior to
Sep-
tember 1, 1961, and who was granted a service annuity for one or
more
years as a contributing member of the school retirement system; all
serv-
ice prior to September 1, 1941, of any employee who served for at
least
six months during one of the qualifying years from 1938 to 1941 in
a
school system maintaining its own separate retirement system in
Kansas,
if such employee has not qualified, nor will in the future qualify,
for
retirement benefits under the separate retirement system; all
service as
a school employee, including out-of-state service as a school
employee,
for a period of 1210 or more years prior
to September 1, 1938, except
that service annuities paid by the state of Kansas to such school
employees
shall not include such out-of-state service as a school employee,
unless
otherwise provided by law; (2) service as a school employee after
Septem-
ber 1, 1941, as a contributing member of the school retirement
system.
No service credit shall be granted to a school employee who
established
or shall hereafter establish membership later than September 1,
1941,
for a period of time between September 1, 1941, and the date of
becom-
ing a contributing member of the retirement system. School service
shall
include only full-time employees, except that 1/2 year of credit
shall be
given to instructional employees who perform school service on at
least
a 1/2 time basis throughout a school year. No school service credit
shall
be given in fractional units of less than 1/2 year. The board may
grant
service credit to employees, who were performing school service at
the
time of their induction into the armed forces of the United States,
equal
to the time spent in the armed forces between September 1, 1940,
and
September 1, 1947, and between June 25, 1950, and July 27, 1953
and
between August 5, 1964, and August 15, 1973, but no such service
credit
shall be granted for a period of more than five years spent in the
armed
forces between September 1, 1940, and September 1, 1947, or for
a
period of more than two years spent in the armed forces between
June
25, 1950, and July 27, 1953 or for a period of more than two years
spent
in the armed forces between August 5, 1964 and August 15, 1973. In
the
event the employee served during the periods between September
1,
1940, and September 1, 1947, and between June 25, 1950, and July
27,
1953, such employee shall be granted a service credit for the
actual time
spent in the armed forces between June 25, 1950, and July 27, 1953,
nor
shall such service credit be granted to any employee unless such
employee
shall reenter school service and continue in such service for at
least one
school year. The board may grant service credit to an employee who
was
performing school service prior to the time of becoming employed as
a
veterans' instructional on-the-farm training instructor equal to
the time
spent as such instructor between the dates of September 1, 1946,
and
September 1, 1961. The board may grant service credit to an
employee
who prior to performing school service was a faculty member of the
Kan-
sas vocational school at Topeka, known part of the time as the
Kansas
technical institute, which operated under the Kansas state board of
re-
gents prior to 1956 equal to the time spent as instructor at such
school.
In case of doubt the board shall decide what constitutes school
service;
and (3) service for which credit must be given under federal law,
includ-
ing, but not limited to, when applicable, the uniformed services
employ-
ment and reemployment rights act of 1994, as in effect on July 1,
1998;
(f) ``school annuitant'' means any person who is entitled to
receive a
school annuity;
(g) ``school annuity'' means the monthly payments due to any
school
annuitant. Such payments shall continue for life, and be paid in
monthly
installments;
(h) ``service annuity'' means that part of the school annuity
which is
based upon the service record of the person concerned, and which is
paid
by the state;
(i) ``savings annuity'' means that part of the school annuity
which re-
sults from the accumulated contributions of the school employee
and
interest thereon less the proportionate share of the expense of the
ad-
ministration of this act;
(j) ``disability annuity'' means a school annuity granted to a
school
employee who suffers such physical or mental disability as to be
unable
to perform school service;
(k) ``standard annuity'' means the school annuity which is
granted to
a school employee at the age of 65 years, as prescribed by this
act. The
standard annuity shall be used as the basis in computing
actuarially equiv-
alent annuities granted at ages prior to 65 years. Whenever the
amount
of any benefit is to be determined on the basis of actuarial
assumptions,
the assumption shall be specified in a way that precludes employer
dis-
cretion;
(l) ``service record'' means the individual record kept by the
board
for each school employee. It shall show the number of school years
of
school service, the salary or wages earned, the date of birth, and
such
other data as the board may require;
(m) ``age'' and ``attained age'' shall be computed as of
September 1
of the calendar year under consideration;
(n) ``deductions'' means the amounts withheld, as provided in
this act,
from warrants issued in payment for school services;
(o) ``actuarial computation'' means computation in accordance
with
some standard actuarial table. The board shall determine which one
of
the standard actuarial tables shall be used. Whenever the amount of
any
benefit is to be determined on the basis of actuarial assumptions,
the
assumptions shall be specified in a way that precludes employer
discre-
tion; and
(p) ``compensation'' means the same as provided in section 83
and
amendments thereto for purposes of nondiscrimination testing
pursuant
to the federal internal revenue code of 1986, as in effect on July
1, 1998.
Sec. 9. K.S.A. 1997 Supp. 74-4902, as amended by section
26 of 1998
Senate Bill No. 382, is hereby amended to read as follows: 74-4902.
As
used in articles 49 and 49a of chapter 74 and amendments thereto,
unless
otherwise provided or the context otherwise requires:
(1) ``Accumulated contributions'' means the sum of all
contributions
by a member to the system which are credited to the member's
account,
with interest allowed thereon;
(2) ``acts'' means K.S.A. 74-4901 to 74-4929,
inclusive,the provisions of articles 49 and 49a of the Kansas Statutes Annotated and
amendments
thereto;
(3) ``actuarial equivalent'' means an annuity or benefit of
equal value
to the accumulated contributions, annuity or benefit, when
computed
upon the basis of the actuarial tables in use by the system.
Whenever the
amount of any benefit is to be determined on the basis of actuarial
as-
sumptions, the assumptions shall be specified in a way that
precludes
employer discretion;
(4) ``actuarial tables'' means the actuarial tables approved
and in use
by the board at any given time;
(5) ``actuary'' means the actuary or firm of actuaries
employed or
retained by the board at any given time;
(6) ``agent'' means the individual designated by each
participating em-
ployer through whom system transactions and communication are
di-
rected;
(7) ``beneficiary'' means any natural person or persons or
estate
named by a member to receive any benefits as provided for by this
act.
Designations of beneficiaries by a member who is a member of
more
than one retirement system made on or after July 1, 1987, shall be
the
basis of any benefits payable under all systems unless otherwise
provided
by law. Except as otherwise provided by subsection (33) of this
section,
if there is no named beneficiary living at time of member's death,
any
benefits provided for by this act shall be paid to: (A) The
member's sur-
viving spouse; (B) the member's dependent child or children; (C)
the
member's dependent parent or parents; (D) the member's
nondependent
child or children; (E) the member's nondependent parent or parents;
(F)
the estate of the deceased member; in the order of preference as
specified
in this subsection. Any payment made to a named beneficiary
shall be a full discharge and release to the system from any further
claims. Any payment made to a beneficiary as provided in clauses (A),
(B), (C), (D), (E) or (F) of this subsection, as determined by the board,
shall be a full discharge and release to the system from any further
claims. Whenever any payment is payable to more than one beneficiary such
payment shall be made to such beneficiaries jointly. Any benefits payable
to a benefi- ciary or beneficiaries who are minor children or
incompetent persons shall be made in the name of the beneficiary or
beneficiaries and deliv- ered to the lawfully appointed conservator of such
beneficiaries who was nominated by will or as otherwise provided by law, except
that in those cases where the benefit involves only the payment of the
member's ac- cumulated contributions with interest as provided by this
act in an amount not to exceed $500, the board is hereby authorized in its
discretion with- out the appointment of a conservator or the giving of a
bond to pay such amount as is due to the minor or minors themselves, any
payment so made shall be a full discharge and release to the system
from any further claims;
(8) ``board of trustees,'' ``board'' or ``trustees'' means the
managing
body of the system which is known as the Kansas public employees
re-
tirement system board of trustees;
(9) ``compensation'' means, except as otherwise provided, all
salary,
wages and other remuneration payable to a member for personal
services
performed for a participating employer, including maintenance or
any
allowance in lieu thereof provided a member as part of
compensation,
but not including reimbursement for travel or moving expenses or on
and
after July 1, 1994, payment pursuant to an early retirement
incentive
program made prior to the retirement of the member. Beginning
with
the employer's fiscal year which begins in calendar year 1991 or
for em-
ployers other than the state of Kansas, beginning with the fiscal
year
which begins in calendar year 1992, when the compensation of a
member
who remains in substantially the same position during any two
consecutive
years of participating service used in calculating final average
salary is
increased by an amount which exceeds 15%, then the amount of
such
increase which exceeds 15% shall not be included in compensation,
ex-
cept that (A) any amount of compensation for accumulated sick leave
or
vacation or annual leave paid to the member, (B) any increase in
com-
pensation for any member due to a reclassification or reallocation
of such
member's position or a reassignment of such member's job
classification
to a higher range or level and (C) any increase in compensation as
pro-
vided in any contract entered into prior to January 1, 1991, and
still in
force on the effective date of this act, pursuant to an early
retirement
incentive program as provided in K.S.A. 72-5395 et seq. and
amendments
thereto, shall be included in the amount of compensation of such
member
used in determining such member's final average salary and shall
not be
subject to the 15% limitation provided in this subsection. Any
contribu-
tions by such member on the amount of such increase which
exceeds
15% which is not included in compensation shall be returned to the
mem-
ber. Unless otherwise provided by law, beginning with the
employer's
fiscal year coinciding with or following July 1, 1985, compensation
shall
include any amounts for tax sheltered annuities or deferred
compensation
plans. Beginning with the employer's fiscal year which begins in
calendar
year 1991, compensation shall include amounts under sections 403b,
457
and 125 of the federal internal revenue code of 1986 and, as the
board deems appropriate, any other section of the federal internal
revenue code
of 1986 which defers or excludes amounts from inclusion in income.
For
purposes of applying limits under the federal internal revenue code
``com-
pensation'' shall have the meaning as provided in section 83 and
amend-
ments thereto;
(10) ``credited service'' means the sum of participating
service and
prior service and in no event shall credited service include any
service
which is credited under another retirement plan authorized under
any
law of this state;
(11) ``dependent'' means a parent or child of a member who is
de-
pendent upon the member for at least 1/2 of such parent or child's
support;
(12) ``effective date'' means the date upon which the system
becomes
effective by operation of law;
(13) ``eligible employer'' means the state of Kansas, and any
county,
city, township, special district or any instrumentality of any one
or several
of the aforementioned or any noncommercial public television or
radio
station located in this state which receives state funds allocated
by the
Kansas public broadcasting commission whose employees are covered
by
social security. If a class or several classes of employees of any
above
defined employer are not covered by social security, such employer
shall
be deemed an eligible employer only with respect to such class or
those
classes of employees who are covered by social security;
(14) ``employee'' means any appointed or elective officer or
employee
of a participating employer whose employment is not seasonal or
tem-
porary and whose employment requires at least 1,000 hours of work
per
year, but not including: (A) Any person covered by or
eligible for or who will become eligible for a retirement annuity under the
provisions of K.S.A. 74-4925 and amendments thereto except as otherwise
specifically provided in subsection (3) of K.S.A. 74-4925 and amendments
thereto and this subsection; (B) Any employee who is a
contributing member of
the United States civil service retirement system; (C) any
employee of an eligible employer who is a participant in public service
employment under title II and title VI of the federal comprehensive
employment and training act of 1973; (D)(B) any employee who is a
contributing member of the federal employees retirement system; (C) any employee who is
a leased
employee of a participating employer. ``Leased employee'' means
the
same as provided in section 414 of the federal internal revenue
code; (E) and (D) any employee or class of employees specifically
exempted by law.
After June 30, 1975, no person who is otherwise eligible for
membership
in the Kansas public employees retirement system shall be barred
from
such membership by reason of coverage by, eligibility for or future
eli-
gibility for a retirement annuity under the provisions of K.S.A.
74-4925
and amendments thereto, except that no person shall receive
service
credit under the Kansas public employees retirement system for any
pe-
riod of service for which benefits accrue or are granted under a
retirement
annuity plan under the provisions of K.S.A. 74-4925 and
amendments
thereto. After June 30, 1982, no person who is otherwise eligible
for
membership in the Kansas public employees retirement system shall
be
barred from such membership by reason of coverage by, eligibility
for or
future eligibility for any benefit under another retirement plan
authorized
under any law of this state, except that no such person shall
receive service
credit under the Kansas public employees retirement system for any
pe-
riod of service for which any benefit accrues or is granted under
any such
retirement plan. Employee shall include persons who are in training
at
or employed by, or both, a sheltered workshop for the blind
operated by
the secretary of social and rehabilitation services. The entry date
for such
persons shall be the beginning of the first pay period of the
fiscal year
commencing in calendar year 1986. Such persons shall be granted
prior
service credit in accordance with K.S.A. 74-4913 and amendments
thereto. However, such persons classified as home industry
employees
shall not be covered by the retirement system. Employees shall
include any member of a board of county commissioners of any county and
any council member or commissioner of a city whose compensation is
equal to or exceeds $5,000 per year;
(15) ``entry date'' means the date as of which an eligible
employer
joins the system. The first entry date pursuant to this act is
January 1,
1962;
(16) ``executive secretary'' means the managing officer of the
system
employed by the board under this act;
(17) ``final average salary'' means in the case of a member
who retires
prior to January 1, 1977, and in the case of a member who retires
after
January 1, 1977, and who has less than five years of participating
service
after January 1, 1967, the average highest annual compensation paid
to
such member for any five years of the last 10 years of
participating service
immediately preceding retirement or termination of employment, or
in
the case of a member who retires on or after January 1, 1977, and
who
has five or more years of participating service after January 1,
1967, the
average highest annual compensation paid to such member on or
after
January 1, 1967, for any five years of participating service
preceding re-
tirement or termination of employment, or, in any case, if
participating
service is less than five years, then the average annual
compensation paid
to the member during the full period of participating service, or,
in any
case, if the member has less than one calendar year of
participating service
such member's final average salary shall be computed by multiplying
such
member's highest monthly salary received in that year by 12; in the
case
of a member who became a member under subsection (3) of K.S.A.
74-
4925 and amendments thereto, or who became a member with a
partic-
ipating employer as defined in subsection (3) of K.S.A. 74-4931
and
amendments thereto and who elects to have compensation paid in
other
than 12 equal installments, such compensation shall be annualized
as if
the member had elected to receive 12 equal installments for any
such
periods preceding retirement; in the case of a member who retires
after
July 1, 1987, the average highest annual compensation paid to such
mem-
ber for any four years of participating service preceding
retirement or
termination of employment; in the case of a member who retires on
or
after July 1, 1993, who was first hired as an employee, as defined
in
subsection (14) of K.S.A. 74-4902 and amendments thereto, prior to
July
1, 1993, the average highest annual compensation, as defined in
subsec-
tion (9), paid to such member for any four years of participating
service
preceding retirement or termination of employment or the average
high-
est annual salary, as defined in subsection (34), paid to such
member for
any three years of participating service preceding retirement or
termi-
nation of employment, whichever is greater; and in the case of a
member
who retires on or after July 1, 1993, and who is first hired as an
employee,
as defined in subsection (14) of K.S.A. 74-4902 and amendments
thereto,
on or after July 1, 1993, the average highest annual salary, as
defined in
subsection (34), paid to such member for any three years of
participating
service preceding retirement or termination of employment. Final
aver-
age salary shall not include any purchase of participating service
credit
by a member as provided in subsection (2) of K.S.A. 74-4919h
and
amendments thereto which is completed within five years of
retirement.
For any application to purchase or repurchase service credit for a
certain
period of service as provided by law received by the system after
May 17,
1994, for any member who will have contributions deducted from
such
member's compensation at a percentage rate equal to two or three
times
the employee's rate of contribution or will begin paying to the
system a
lump-sum amount for such member's purchase or repurchase and
such
deductions or lump-sum payment commences after the commencement
of the first payroll period in the third quarter, ``final average
salary'' shall
not include any amount of compensation or salary which is based on
such
member's purchase or repurchase. Any application to purchase or
repur-
chase multiple periods of service shall be treated as multiple
applications.
For purposes of this subsection, the date that such member is first
hired
as an employee for members who are employees of employers that
elected to participate in the system on or after January 1, 1994,
shall be
the date that such employee's employer elected to participate in
the sys-
tem. In the case of any former member who was eligible for
assistance pursuant to K.S.A. 74-4925 and amendments thereto prior to July
1, 1998, for the purpose of calculating final average salary of such
member, such member's final average salary shall be based on such member's
salary while a member of the system or while eligible for assistance
pursuant to K.S.A. 74-4925 and amendments thereto, whichever is
greater;
(18) ``fiscal year'' means, for the Kansas public employees
retirement
system, the period commencing July 1 of any year and ending June 30
of
the next;
(19) ``Kansas public employees retirement fund'' means the
fund cre-
ated by this act for payment of expenses and benefits under the
system
and referred to as the fund;
(20) ``leave of absence'' means a period of absence from
employment
without pay, authorized and approved by the employer, and which
after
the effective date does not exceed one year;
(21) ``member'' means an eligible employee who is in the
system and
is making the required employee contributions,
or; any former employee
who has made the required contributions to the system and has not
re-
ceived a refund if such member is within five years of
termination of employment with a participating employer; or any former employee
who has made the required contributions to the system, has not yet
received a refund and has been granted a vested benefit;
(22) ``military service'' means service in the uniformed
forces of the
United States, for which retirement benefit credit must be given
under
the provisions of USERRA or service in the armed forces of the
United
States or in the commissioned corps of the United
StateStates public
health service, which service is immediately preceded by a period
of em-
ployment as an employee or by the entering into of an employment
con-
tract with a participating employer and is followed by return to
employ-
ment as an employee with the same or another participating
employer
within 12 months immediately following discharge from such
military
service, except that if the board determines that such return
within 12
months was made impossible by reason of a service-connected
disability,
the period within which the employee must return to employment
with
a participating employer shall be extended not more than two years
from
the date of discharge or separation from military service;
(23) ``normal retirement date'' means the date on or after
which a
member may retire with full retirement benefits pursuant to K.S.A.
74-
4914 and amendments thereto;
(24) ``participating employer'' means an eligible employer who
has
agreed to make contributions to the system on behalf of its
employees;
(25) ``participating service'' means the period of employment
after
the entry date for which credit is granted a member;
(26) ``prior service'' means the period of employment of a
member
prior to such member'sthe entry date for
which credit is granted a mem-
ber under this act;
(27) ``prior service annual salary'' means the highest annual
salary,
not including any amounts received as payment for overtime or as
re-
imbursement for travel or moving expense, received for personal
services
by the member from the current employer in any one of the three
cal-
endar years immediately preceding January 1, 1962, or the entry
date of
the employer, whichever is later, except that if a member entered
the
employment of the state during the calendar year 1961, the prior
service
annual salary shall be computed by multiplying such member's
highest
monthly salary received in that year by 12;
(28) ``retirant'' means a member who has retired under this
system;
(29) ``retirement benefit'' means a monthly income or the
actuarial
equivalent thereof paid in such manner as specified by the member
pur-
suant to this act or as otherwise allowed to be paid at the
discretion of
the board, with benefits accruing from the first day of the month
coin-
ciding with or following retirement and ending on the last day of
the
month in which death occurs. Upon proper identification a
surviving
spouse may negotiate the warrant issued in the name of the
retirant;
(30) ``retirement system'' or ``system'' means the Kansas
public em-
ployees retirement system as established by this act and as it may
be
amended;
(31) ``social security'' means the old age, survivors and
disability in-
surance section of the federal social security act;
(32) ``total disability'' means a physical or mental
disability which pre-
vents the member from engaging, for remuneration or profit, in any
oc-
cupation for which the member is reasonably suited by education,
training
or experience;
(33) ``trust'' means an express trust, created by a trust
instrument,
including a will, designated by a member to receive payment of the
in-
sured death benefit under K.S.A. 74-4927 and amendments thereto
and
payment of the member's accumulated contributions under
subsection
(1) of K.S.A. 74-4916 and amendments thereto. A designation of a
trust
shall be filed with the board. If there is a designated trust at
the time of
the member's death, the insured death benefit for the member
under
K.S.A. 74-4927 and amendments thereto and the member's
accumulated
contributions under subsection (1) of K.S.A. 74-4916 and
amendments
thereto shall be paid to the trust in lieu of the member's
beneficiary. If
no will is admitted to probate within six months after the death of
the
member or no trustee qualifies within such six months or if the
designated
trust fails, for any reason whatsoever, the insured death benefit
under
K.S.A. 74-4927 and amendments thereto and the member's
accumulated
contributions under subsection (1) of K.S.A. 74-4916 and
amendments
thereto shall be paid in accordance with the provisions of
subsection (7)
of this section as in other cases where there is no named
beneficiary living
at the time of the member's death and any payments so made shall be
a
full discharge and release to the system from any further
claims;
(34) ``salary'' means all salary and wages payable to a member
for
personal services performed for a participating employer, including
main-
tenance or any allowance in lieu thereof provided a member as part
of
salary. Salary shall not include reimbursement for travel or moving
ex-
penses, payment for accumulated sick leave or vacation or annual
leave,
severance pay or any other payments to the member determined by
the
board to not be payments for personal services performed for a
partici-
pating employer constituting salary or on and after July 1, 1994,
payment
pursuant to an early retirement incentive program made prior to
the
retirement of the member. When the salary of a member who
remains
in substantially the same position during any two consecutive years
of
participating service used in calculating final average salary is
increased
by an amount which exceeds 15%, then the amount of such
increase
which exceeds 15% shall not be included in salary. Any
contributions by
such member on the amount of such increase which exceeds 15%
which
is not included in compensation shall be returned to the member.
Unless
otherwise provided by law, salary shall include any amounts for tax
shel-
tered annuities or deferred compensation plans. Salary shall
include
amounts under sections 403b, 457 and 125 of the federal internal
revenue
code of 1986 and, as the board deems appropriate, any other
section of
the federal internal revenue code of 1986 which defers or
excludes
amounts from inclusion in income. For purposes of applying limits
under
the federal internal revenue code ``salary'' shall have the meaning
as pro-
vided in section 83 and amendments thereto. In any case, if
participating
service is less than three years, then the average annual salary
paid to the
member during the full period of participating service, or, in any
case, if
the member has less than one calendar year of participating service
such
member's final average salary shall be computed by multiplying
such
member's highest monthly salary received in that year by 12;
(35) ``federal internal revenue code'' means the federal
internal rev-
enue code of 1954 or 1986, as in effect on July 1, 1998, and as
applicable
to a governmental plan; and
(36) ``USERRA'' means the federal uniformed services
employment
and reemployment rights act of 1994 as in effect on July 1,
1998.
Sec. 10. K.S.A. 1997 Supp. 74-4904 is hereby amended to
read as
follows: 74-4904. (1) The system may sue and be sued in its
official name,
but its trustees, officers, employees and agents shall not be
personally
liable for acts of the system unless such person acted with
willful, wanton
or fraudulent misconduct or intentionally tortious conduct. Any
agree-
ment in settlement of litigation involving the system and the
investment
of moneys of the fund is a public record as provided in K.S.A.
45-215 et
seq. and amendments thereto and subject to the provisions of that
act.
The service of all legal process and of all notices which may be
required
to be in writing, whether legal proceedings or otherwise, shall be
had on
the executive secretary at such executive secretary's office. All
actions or
proceedings directly or indirectly against the system shall be
brought in
Shawnee county.
(2) Any person aggrieved by any order or decision of the board
made
without a hearing, may, within 30 days after notice of the order or
decision
of the board make written request to the board for a hearing
thereon.
The board shall hear such party or parties in accordance with the
provi-
sions of the Kansas administrative procedure act at its next
regular meet-
ing or at a special meeting within 60 days after receipt of such
request.
For the purpose of any hearing under this section, the board may
appoint
one or more presiding officers. Any such presiding officer shall be
a mem-
ber of the board or, an employee of the
board or any other person des- ignated by the board to serve as such presiding officer. Any
such appoint-
ment shall apply to a particular hearing or to a set or class of
hearings as
specified by the board in making such appointment. The board shall
re-
view an initial order resulting from a hearing under this section.
Any
member of the board who serves as a presiding officer shall be
reim-
bursed for actual and necessary expenses and shall receive
compensation
in an amount fixed by the board not to exceed the per diem
compensation
allowable for members of the board. The board is hereby
authorized to enter into a contract with any other person designated by the
board to serve as a presiding officer who is not a member or employee of
the board and to provide for reimbursement for actual and necessary
expenses and compensation for such person serving as a presiding
officer.
Sec. 11. K.S.A. 1997 Supp. 74-4905 is hereby amended to
read as
follows: 74-4905. (a) On July 1, 1993, the board of trustees of the
Kansas
public employees retirement system, as such board existed on June
30,
1993, is hereby abolished. On July 1, 1993, there is hereby
established a
new board of trustees of the Kansas public employees retirement
system.
Such board established on July 1, 1993, shall consist of nine
members, as
follows:
(1) Six appointed members, four appointed by the governor
subject
to confirmation by the senate as provided in K.S.A. 75-4315b and
amend-
ments thereto, one appointed by the president of the senate and
one
appointed by the speaker of the house of representatives. Except as
pro-
vided by K.S.A. 19961997 Supp. 46-2601, no
person appointed to the
board whose appointment is subject to confirmation, shall exercise
any
power, duty or function as a member of the board until confirmed by
the
senate. No more than two members of the board whose appointment
is
subject to confirmation shall be from the same political party;
(2) two retirement system members elected by the members and
re-
tirants of the system as provided in subsection (12) of K.S.A.
74-4909 and
amendments thereto. As provided in this subsection, only active and
re-
tired members of the system shall be eligible to be elected to the
board
and only active and retired members of the system shall be eligible
to
elect the two retirement system members pursuant to this
subsection.
Inactive members shall not be eligible to be elected to the board
nor to
elect the two retirement system members elected pursuant to this
sub-
section. If a member elected to the board as provided in this
subsection becomes inactive, such member is disqualified from service on
the board and such member's board position shall be vacant and such
vacancy shall be filled as provided in subsection (b)(1). Of the two
retirement system
members elected pursuant to this subsection, one shall be a member
of
the retirement system who is in school employment as provided in
K.S.A.
74-4931 et seq. and amendments thereto and one shall be a
member of
the retirement system other than a member who is in school
employment.
For purposes of this subsection, retirement system means the
Kansas
public employees retirement system, the Kansas police and firemen's
re-
tirement system and the retirement system for judges; and
(3) the state treasurer.
(b) (1) Except as provided by this paragraph and
paragraph (2), all
members of the board as provided in subsection (a)(1) and (a)(2)
shall
serve four-year terms, except that of the members first appointed
by the
governor, two shall be appointed for two-year terms and the
member
appointed by the speaker of the house of representatives shall be
ap-
pointed for a two-year term. The governor shall designate the term
for
which each of the members first appointed shall serve. All members
ap-
pointed to fill vacancies in the membership of the board and all
members
appointed to succeed members appointed to membership on the
board
shall be appointed in like manner as that provided for the original
ap-
pointment of the member succeeded. All members appointed to fill
va-
cancies of a member of the board appointed by the governor, the
presi-
dent of the senate or the speaker of the house of representatives
shall be
appointed to fill the unexpired term of such member. All vacancies
on
the board by a member elected by the members and retirants of
the
system shall be filled by the board as provided by rules and
regulations
adopted as provided in subsection (12) of K.S.A. 74-4909 and
amend-
ments thereto.
(2) Except as provided in K.S.A. 19961997 Supp. 46-2601, no person
appointed to the board by the governor shall exercise any power,
duty or
function as a member of the board until confirmed by the senate.
The
terms of members appointed by the governor who are serving on
the
board on the effective date of this act shall expire on January 15,
of the
year in which such member's term would have expired under the
provi-
sions of this section prior to amendment by this act. Thereafter,
members
shall be appointed for terms of four years and until their
successors are
appointed and confirmed.
(c) The board shall elect a chairperson of the board at the
first regular
meeting held on or after July 1, 1993, and at each annual meeting
there-
after from the members of the board. The chairperson shall preside
over
meetings of the board and perform such other duties as required by
the
board.
(d) The chairperson shall appoint another board member as
vice-
chairperson, and the vice-chairperson shall perform the duties of
chair-
person in the absence of the chairperson or upon the chairperson's
ina-
bility or refusal to act.
(e) The six members appointed pursuant to subsection (a)(1)
shall
have demonstrated experience in the financial affairs of a public
or private
organization or entity which employs 100 or more employees or had
at
least five years' experience in the field of investment management
or
analysis, actuarial analysis or administration of an employee
benefit plan.
(f) No person shall serve on the board if such person has
knowingly
acquired a substantial interest in any nonpublicly traded
investment made
with moneys of the fund. Any such person who knowingly acquires
such
an interest shall vacate such member's position on the board and
shall be
guilty of a class A misdemeanor. For purposes of this subsection,
``sub-
stantial interest'' means any of the following:
(1) If an individual or an individual's spouse, either
individually or
collectively, has owned within the preceding 12 months a legal or
equi-
table interest exceeding $5,000 or 5% of any business, whichever is
less,
the individual has a substantial interest in that business.
(2) If an individual or an individual's spouse, either
individually or
collectively, has received during the preceding calendar year
compensa-
tion which is or will be required to be included as taxable income
on
federal income tax returns of the individual and spouse in an
aggregate
amount of $2,000 from any business or combination of businesses,
the
individual has a substantial interest in that business or
combination of
businesses.
(3) If an individual or an individual's spouse holds the
position of
officer, director, associate, partner or proprietor of any
business, the in-
dividual has a substantial interest in that business, irrespective
of the
amount of compensation received by the individual or individual's
spouse.
(4) If an individual or an individual's spouse receives
compensation
which is a portion or percentage of each separate fee or commission
paid
to a business or combination of businesses, the individual has a
substantial
interest in any client or customer who pays fees or commissions to
the
business or combination of businesses from which fees or
commissions
the individual or the individual's spouse, either individually or
collectively,
received an aggregate of $2,000 or more in the preceding calendar
year.
(5) If an individual or an individual's spouse has received a
loan from
or received financing from any bank, savings and loan, credit union
or
any other financial institution in an amount which exceeds $2,000,
the
individual has a substantial interest in that financial
institution.
As used in this subsection, ``client or customer'' means a business
or
combination of businesses.
Any person who serves on the board shall fully disclose any
substantial
interest that such person has in any publicly traded investment
made with
moneys of the fund.
(g) No person who serves on the board shall be employed for a
period
of two years commencing on the date the person no longer serves on
the
board and ending two years after such date with any organization in
which
moneys of the fund were invested, except that the employment
limitation
contained in this subsection shall not apply if such person's
employment
is with an organization whose stock or other evidences of ownership
are
traded on the public stock or bond exchanges.
(h) All members of the board named, appointed or elected to
the
board shall be subject to an investigation by the Kansas bureau of
inves-
tigation or other criminal justice agencies. Information to be
obtained
during such investigation shall include criminal history record
informa-
tion, including arrest and conviction data, criminal intelligence
informa-
tion and information relating to criminal and background
investigations
as necessary to determine qualifications of such member. Such
infor-
mation shall be forwarded to the senate committee specified by the
pres-
ident of the senate for such committee's consideration and other
than
conviction data, shall be confidential and shall not be disclosed
except to
members and employees of the committee as necessary to
determine
qualifications of such member. The committee, in accordance with
K.S.A.
75-4319 and amendments thereto shall recess for a closed or
executive
meeting to receive and discuss information received by the
committee
pursuant to this subsection.
(i) All of the powers, duties and functions of the board of
trustees of
the Kansas public employees retirement system as such board
existed
prior to July 1, 1993, are hereby transferred to and conferred and
imposed
upon the board of trustees established pursuant to this act. The
board of
trustees of the Kansas public employees retirement system
established
pursuant to this act shall be the successor in every way of the
powers,
duties and functions of the board of trustees existing prior to
July 1, 1993,
in which the same were vested prior to July 1, 1993.
Sec. 12. K.S.A. 1997 Supp. 74-4907 is hereby amended to
read as
follows: 74-4907. (1) The principal office of the system shall be
in quarters
at Topeka, Kansas. Offices shall be assigned to the system
by the secretary of administration.
(2) The board shall keep a complete record of all proceedings
which
shall be open at all reasonable hours to inspection. Any agreement
in
settlement of litigation involving the system and the investment of
moneys
of the fund shall be open for inspection by any person and suitable
facil-
ities shall be made available by the system for this purpose as
provided
by the provisions of K.S.A. 45-215 et seq. and amendments thereto.
A
report covering the operation of the system for the past fiscal
year, in-
cluding income and disbursements, and of the financial condition of
the
system at the end of such fiscal year, showing the valuation of
assets and
investments and liabilities of the system, shall be delivered after
the end
of each fiscal year and prior to January 1 of the next fiscal year
to the
governor and to the chairperson of the legislative coordinating
council,
to the secretary of the senate and to the chief clerk of the house
of rep-
resentatives and shall be made readily available to the members and
par-
ticipating employers of the system. Such report shall include the
financial
statements of the system and supporting schedules, presented in
accord-
ance with generally accepted accounting principles. Such
supporting
schedules presented in the annual report shall include a listing
which
reports the cost and the fiscal year end lower amount of cost or
market
value for each individual alternative investment of the system
which was
initiated on or after July 1, 1991, and reports, in aggregate, the
cost and
the fiscal year end lower amount of cost or market value for those
alter-
native investments of the system initiated prior to July 1, 1991.
The re-
tirement system shall maintain a listing which reports the cost and
the
fiscal year end lower amount of cost or market value for each
individual
alternative investment of the system which was initiated prior to
July 1,
1991, and such listing shall be available for review in camera by
the joint
committee on pensions, investments and benefits and as may be
required
under the provisions of the legislative post audit act.
Sec. 13. K.S.A. 1997 Supp. 74-4908 is hereby amended to
read as
follows: 74-4908. (1) The board shall appoint an executive
secretary and
shall establish the compensation therefor. Subject to the direction
of the
board, the executive secretary shall be the managing officer of the
system
and as such shall have charge of the office, records and
supervision and
direction of the employees of the system. The executive secretary
shall
be in the unclassified service under the Kansas civil service
act.
(2) The executive secretary shall recommend to the board the
ad-
ministrative organization, the number and qualifications of
employees
necessary to carry out the intent of this act and the directions of
the board.
Upon approval of the board, the executive secretary is authorized
to em-
ploy such persons in accordance with the Kansas civil service
act.
(3) The board of trustees shall select and employ or retain a
qualified
actuary who shall serve at its pleasure as its technical advisor on
matters
regarding operation of the system. The actuary shall:
(a) Make an annual valuation of the liabilities and reserves
of the
system, and a determination of the contributions required by the
system
to discharge its liabilities and administrative costs under this
act, and
recommend to the board rates of employer contributions required
to
establish and maintain the system on an actuarial reserve basis.
Such
recommended employer contributions shall not be based on any
other
purpose outside of the needs of the system as prescribed by this
subsec-
tion.
(b) As soon after the effective date as practicable and once
every
three years thereafter, make a general investigation of the
actuarial ex-
perience under the system including mortality, retirement,
employment
turnover and interest, and recommend actuarial tables for use in
valua-
tions and in calculating actuarial equivalent values based on such
inves-
tigation.
(c) Cooperate with and provide any assistance to the actuary,
the
legislative coordinating council and the joint committee on
pensions, in-
vestments and benefits related to the independent actuarial audit
and
evaluation as provided in K.S.A. 19961997
Supp. 74-4908a and amend-
ments thereto.
(d) Perform such other duties as may be assigned by the
board.
(4) The attorney general of the state shall furnish such legal
services
as may be necessary upon receipt of a request from the board,
except
that legal services may be furnished by other counsel as the board
in its
discretion deems necessary and prudent.
(5) The board shall employ or retain qualified investment
counsel or
counselors or may negotiate with a trust company to assist and
advise in
the judicious investment of funds as herein provided.
(6) The board may appoint a deputy executive secretary,
an invest-
ment officer, an investment analyst, a real estate manager, a
direct place-
ment manager, a chief fiscal officer, a member services officer, an
attor-
ney, an assistant investment officer and an information resource
officer
to advise and assist the board in the performance of powers, duties
and
functions relating to the management and investment of the fund and
in
such other matters as may be directed by the board. Such
appointed
officers and employees shall be in the unclassified service under
the Kan-
sas civil service act. The compensation of such appointed officers
and
employees shall be established by the board.
Sec. 14. K.S.A. 1997 Supp. 74-4910 is hereby amended to
read as
follows: 74-4910. (1) An eligible employer may join the system on
January
1 of any year. Application for affiliation shall be in the form of
a resolution
approved by the governing or legislative body of the eligible
employer or
by any other body or officer authorized by law or recognized by the
board
to approve the action. No city or township shall become a
participating
employer except by the adoption of a resolution therefor, which
shall be
published once in the official city or township newspaper or, if
there is
none, in a newspaper of general circulation in the city or county.
No such
resolution shall take effect until 60 days after its final
publication. If within
60 days of its final publication a petition signed by electors
equal in num-
ber to not less than 10% of the electors who voted at the last
preceding
regular election in the township, in the case of townships, the
last regular
city election in the city, in the case of cities is filed in the
office of the
clerk of such city, or township demanding that such resolution be
sub-
mitted to a vote of the electors, the resolution shall not take
effect until
submitted to a referendum and approved by a majority of the
electors
voting thereon. A 2/3 vote of the members-elect of the governing
body
shall be necessary for the affiliation of any eligible employer
other than
a city or township. An application for affiliation with the system
shall be
filed with the board not later than 30 days prior to the date
participation
is to begin, except as such time limit may be extended by the
board. Upon
the filing of a certified copy of such resolutions with the board
an election
pursuant to this section shall be irrevocable, and the employer
shall be-
come a participating employer on January 1 of the year immediately
fol-
lowing the filing of such election with the board.
(2) The state of Kansas in its capacity as an eligible
employer, shall
become, by operation of law, a participating employer on the first
entry
date. The Kansas turnpike authority shall not become a
participating em-
ployer nor shall its officers or employees be covered by the
retirement
system until such time as its governing body by a 2/3 vote of the
members
of such governing body adopts a resolution for affiliation and
files the
same in the same manner and on the same conditions as in the case
of
an eligible employer other than a city or township.
(3) If a participating employer is paying or has paid the
salary or other
compensation of the judge, clerk or any other employee, whether
elective
or appointive, such judge, clerk or other employee of such court or
courts,
whether elective or appointive, shall be deemed an employee of the
par-
ticipating employer. Such employee shall be governed by the
provisions
governing other eligible employees of such participating employer.
Any
participating employer which has not heretofore included such
employees
as eligible employees under the retirement system shall on the
first day
of the month coinciding with or following the effective date of
this act
include such employees if otherwise eligible as eligible employees
under
the retirement system. Such employees, whether elective or
appointive,
if employed on the employer's entry date may elect to pay forthwith
the
employee contributions from the employer's entry date and thereby
be
governed by the provisions governing other employees employed by
the
participating employer on entry date except that no such employee
shall
be considered to be new employees on the first day of the month
coin-
ciding with or following the effective date of this act and
commence
making employee contributions in compliance with other provisions
gov-
erning the retirement system and the participating employer shall
make
the employer contributions in accordance with the alternative
elected by
the employee and other provisions governing the retirement
system.
(4) Any employer whose employees are covered by social
security and
who otherwise do not meet the provisions of subsection (13) of
K.S.A.
74-4902 and amendments thereto may elect to affiliate under this
section
upon meeting the definition of a governmental entity or
instrumentality
as determined by the system. If, subsequent to such determination,
the
United States internal revenue service determines that such
employer
does not meet the definition of a governmental entity or
instrumentality,
such affiliation shall be null and void and all employee accrued
rights
associated with such affiliation shall be null and void and the
system shall
refund such amounts presently credited to each employee's account
and
an equivalent amount to the employer for each employee. The
provisions
of this subsection shall apply to current and future participating
employ-
ers.
(5) For affiliations on and after January 1, 1999, any
eligible em- ployer, prior to the filing of an application for affiliation
under this system, shall request the board of trustees to submit a proposal for
such affiliation including an estimate of the employer's contribution rate
necessary to comply with the actuarial standard of this system. Such eligible
employer shall furnish all necessary data from which such proposal is
prepared, and shall pay all costs involved.
Sec. 15. K.S.A. 1997 Supp. 74-4911, as amended by section
28 of
1998 Senate Bill No. 382, is hereby amended to read as follows:
74-4911.
(1) Any employee of a participating employer other than an elected
of-
ficial on the entry date of such employer shall be a member of the
system
on either the entry date or the first day of the payroll period
coinciding
with or following the completion of one year of service, whichever
is later.
For purposes of this act occasional breaks in service which shall
not ex-
ceed an aggregate of 10 days in any such year shall not constitute
a break
in service for purposes of determining the membership date of such
em-
ployee.
(2) Except as otherwise provided in this subsection, any
employee
other than an elected official who is employed by a participating
employer
after the entry date of such employer shall be a member of the
system
on the first day of the payroll period coinciding with or following
com-
pletion of one year of continuous service. For purposes of this
act, oc-
casional breaks in service which shall not exceed an aggregate of
10 days
in any such year shall not constitute a break in continuous service
for
purposes of determining the membership date of such employee.
For
purposes of this subsection, any employee of a local governmental
unit
which has its own pension plan who becomes an employee of a
partici-
pating employer as a result of a merger or consolidation of
services pro-
vided by local governmental units, which occurred on January 1,
1994,
may count service with such local governmental unit in
determining
whether such employee has met the one year of continuous service
re-
quirement contained in this subsection.
(3) Any employee who is an elected official and is eligible to
join the
system shall file, within 90 days after taking the oath of office,
an irrev-
ocable election to become or not to become a member of the
system.
Such election shall become effective immediately upon making
such elec- tion, if such election is made within 14 days of taking the oath
of office or, otherwise, on the first day of the first payroll period
of the first quarter
following receipt of the election in the office of the retirement
system.
In the event that such elected official fails to file the election
to become
a member of the retirement system, it shall be presumed that such
person
has elected not to become a member.
(4) Except as otherwise required by USERRA, any employee
other
than an elected official who is in military service or on leave of
absence
on the entry date of such employee's employer shall become a
member
of the system upon returning to active employment or on the first
day of
the payroll period coinciding with or following the completion of
one year
of service, whichever is later. For purposes of this act,
occasional breaks
in service which shall not exceed an aggregate of 10 days in any
such year
shall not constitute a break in service for purposes of determining
the
membership date of such employee.
(5) Any employee of the state of Kansas other than an elected
official,
who is receiving or is eligible for assistance by the state board
of regents
in the purchase of a retirement annuity under K.S.A. 74-4925,
and
amendments thereto, and who becomes ineligible for such assistance
be-
cause such employee's position is reclassified to a position in the
classified
service under the Kansas civil service act, or who becomes
ineligible for
such assistance because such person accepts and transfers to a
position
in the classified service under the Kansas civil service act shall
be a mem-
ber of the system on the first day of the payroll period coinciding
with or
following the effective date of such reclassification or transfer.
Any such
employee who became ineligible for such assistance prior to the
effective
date of this act because of such a reclassification or such a
transfer oc-
curring prior to the effective date of this act and who is not a
member of
the system on the effective date of this act shall be a member of
the
system on the first day of the payroll period coinciding with or
following
the effective date of this act.
(6) Any employee of the state board of regents or of an
educational
institution under its management, other than an elected official,
who is a
member of the system and who becomes ineligible to be a member
of
the system because such employee's position is reclassified to a
position
under the Kansas civil service act which is eligible for assistance
by the
state board of regents in the purchase of a retirement annuity
under
K.S.A. 74-4925 and amendments thereto, or who becomes ineligible
to
be a member of the system because such employee transfers to a
position
under the Kansas civil service act which is eligible for such
assistance,
shall become eligible for such assistance in accordance with the
provisions
of K.S.A. 74-4925 and amendments thereto, unless such employee
files
a written election in the office of the retirement system, in the
form and
manner prescribed by the board of trustees thereof, to remain a
member
of the system prior to the first day of the first complete payroll
period
occurring after the effective date of such reclassification or
transfer. Fail-
ure to file such written election shall be presumed to be an
election not
to remain a member of the system and to become eligible for
assistance
by the state board of regents in the purchase of a retirement
annuity
under K.S.A. 74-4925 and amendments thereto. Such election,
whether
to remain a member of the system or to become eligible for such
assis-
tance, shall be effective as of the effective date of such
reclassification or
transfer, and shall be irrevocable.
(7) Any elected official who at the time of becoming an
elected official
is already a member of the system by being or having been an
employee
of a participating employer shall continue as a member of the
system.
Sec. 16. K.S.A. 1997 Supp. 74-4913, as amended by section
33 of
1998 Senate Bill No. 382, is hereby amended to read as follows:
74-4913.
(1) Prior service shall be credited as follows:
(a) A member shall receive full credit for continuous
employment
prior to the entry date with such member's employer on the entry
date.
If the employee was also employed on March 15, 1961,
by the employer who is the employee's employer on the employee's entry
dateof the year immediately preceding the entry date of that employer, then
all such pre-
vious employment, whether or not continuous, shall be credited;
other-
wise no credit shall be granted for employment prior to a break in
con-
tinuous employment. Any member or retirant who has been
credited with prior service as hereinbefore provided and who was
employed by any
participating employer on March 15, 1961of the
year immediately pre- ceding the entry date of that employer, may apply to the
board on such
forms as it may prescribe for prior service credit with a
participating
employer other than the member's entry date employer. Upon receipt
of
written verification of such employment from the participating
employer,
the board mayshall grant such additional
prior service credit and with
respect to a retirant, shall adjust the amount of the retirement
benefit
accordingly commencing with the next monthly benefit payment due
fol-
lowing receipt of the written verification, except that such
retirant shall
not be entitled to any retroactive adjustment in the amount of such
re-
tirement benefit as a result of the board granting such additional
prior
service credit. In the case of any person other than a retirant
receiving a
retirement benefit, such person may make application for an
adjustment
in the benefit amount in the same manner as a member or retirant,
and
in such case the adjustment in the benefit amount shall be
determined
by the board upon the advice of the actuary, and shall commence
with
the next monthly benefit payment due following receipt of the
written
verification;
(b) leaves of absence and military service shall not be
counted as
breaks in continuous employment; however, military service which is
im-
mediately preceded and followed by employment with a
participating
employer shall be credited, except that after July 1, 1974, not
more than
five years' credit for military service shall be granted hereunder
to the
extent required under USERRA, but leaves of absence shall not be
cred-
ited;
(c) any member who was employed in the Kansas state
employment
service, now a section of the Kansas division of employment
security,
during any of the time the Kansas state employment service was
loaned
by the state to the federal government (January 1, 1942, for the
duration
of the emergency period of world war II, which service was returned
to
the state by the federal government effective November 16, 1946)
shall
be entitled to prior service credit for the time so employed during
the
period stated for any service rendered under the jurisdiction of
the United
States employment service for the federal government in like manner
as
if the employment service had remained under the jurisdiction of
the
state of Kansas;
(d) any member who is not otherwise eligible for service
credit as
provided for in subsection (1)(a) may be granted credit for the
service
upon the attainment of 38 quarters of participating service;
(e) any member who was employed by the university of Wichita
prior
to July 1, 1964, shall be entitled to prior service credit for such
time of
employment under the Kansas public employees retirement system,
when such employment is not the basis for other pension rights.
(2) Participating service shall be credited as follows: (a) A
member
shall receive credit for participating service with a participating
employer
in accordance with the rules and regulations established by the
board of
trustees, except that no more than one calendar quarter of
participating
service shall be credited for any employment within any one
calendar
quarter;
(b) leaves of absence and military service shall not count as
a break
in continuous employment. In the case of a leave of absence, the
member
shall leave such member's accumulated contribution on deposit with
the
fund; however, the period of military service shall be credited,
except that
after July 1, 1974, not more than five years' credit for military
service
shall be granted hereunder to the extent required under USERRA,
but
leaves of absence shall not be credited. Employees who enter the
military
service from their employment after the employer's entry date and
who
have not completed one year of service at the time of their entry
into the
military service, shall not become members of the retirement system
until
they return to the employment of that or another
participating employer.
In the case of such employee whose combined public employment
and
military service does not equal one year at the time of such
employee's
return to employment, the date of membership shall be the first day
of
the payroll period coinciding with or following the completion of
one
combined public employment and military year of service. Such
service
shall be granted in accordance with this section;
(c) a period of retirement under the system or a period of
total dis-
ability, immediately followed by employment with a participating
em-
ployer, shall not count as a break in continuous employment, except
that
such periods while not employed shall not be credited as
participating
service;
(d) termination of employment, followed by employment with a
par-
ticipating employer within five years after such termination, does
not
constitute a break in continuous employment if such person has not
with-
drawn such person's accumulated contribution. Such period while
not
employed shall not be credited as participating service.
(3) In determining the number of years of credited prior
service or
participating service a fractional year of six months or more shall
be con-
sidered as one year and a fractional year of less than six months
shall be
disregarded.
Sec. 17. K.S.A. 1997 Supp. 74-4914 is hereby amended to
read as
follows: 74-4914. (1) The normal retirement date for a member of
the
system shall be the first day of the month coinciding with or
following termination of employment with any participating employer not
followed by employment with any participating employer within 30 days
and the
attainment of age 65 or, commencing July 1, 1986, age 65 or
age 60 with the completion of 35 years of credited service or at any
age with the completion of 40 years of credited service, or
commencing July 1, 1993, any alternative normal retirement date already prescribed
by law or age
62 with the completion of 10 years of credited service or the first
day of
the month coinciding with or following the date that the total of
the
number of years of credited service and the number of years of
attained
age of the member is equal to or more than 85. In no event shall a
normal
retirement date for a member be before six months after the entry
date
of the participating employer by whom such member is employed.
A
member may retire on the normal retirement date or on the first day
of
any month thereafter upon the filing with the office of the
retirement
system of an application in such form and manner as the board
shall
prescribe. Nothing herein shall prevent any person, member or
retirant
from being employed, appointed or elected as an employee,
appointee,
officer or member of the legislature. Elected officers may retire
from the
system on any date on or after the attainment of the normal
retirement
date, but no retirement benefits payable under this act shall be
paid until
the member has terminated such member's office.
(2) No retirant shall make contributions to the system or
receive serv-
ice credit for any service after the date of retirement.
(3) Any member who is an employee of an affiliating employer
pur-
suant to K.S.A. 74-4954b and amendments thereto and has not
withdrawn
such member's accumulated contributions from the Kansas police
and
firemen's retirement system may retire before such member's
normal
retirement date on the first day of any month coinciding with or
following
the attainment of age 55.
(4) Any member may retire before such member's normal
retirement
date on the first day of any month coinciding with or following
termination of employment with any participating employer not followed by
employ- ment with any participating employer within 30 days and the
attainment
of age 55 with the completion of 10 years of credited service, but
in no
event before six months after the entry date, upon the filing with
the
office of the retirement system of an application for retirement in
such
form and manner as the board shall prescribe.
(5) If a retirant who retired on or after July 1, 1988, is
employed or
appointed in or to any position or office for which compensation
for serv-
ice is paid, during calendar years 1988 through 1990, in an
amount equal to $6,000 or more in any one such calendar year; during
calendar year 1991, in an amount equal to $9,720 or more; during calendar
year 1992, in an amount equal to $10,200 or more; during calendar year
1993, in an amount equal to $10,560 or more; during calendar year 1994,
in an amount equal to $11,160 or more; or during calendar year
1995 and all calendar years thereafter, in an amount equal to
$11,280$15,000 or more
in any one such calendar year, by any participating employer for
which
such retirant was employed or appointed during the final two years
of
such retirant's participation, such retirant shall not receive any
retirement
benefit for any month for which such retirant serves in such
position or
office. The participating employer shall report to the system
within 30 days of when the compensation paid to the retirant is equal to
or exceeds any limitation provided by this section. Any retirant
employed by a par-
ticipating employer shall not make contributions nor receive
additional
credit under such system for such service except as provided by
this sec-
tion. Upon request of the executive secretary of the system, the
secretary
of revenue shall provide such information as may be needed by the
ex-
ecutive secretary to carry out the provisions of this act. The
provisions of
this subsection shall not apply to retirants employed as substitute
teachers
or officers, employees, appointees or members of the legislature or
any
other elected officials.
(6) For purposes of this section, any employee of a local
governmental
unit which has its own pension plan who becomes an employee of
a
participating employer as a result of a merger or consolidation of
services
provided by local governmental units, which occurred on January 1,
1994,
may count service with such local governmental unit in
determining
whether such employee has met the years of credited service
require-
ments contained in this section.
Sec. 18. K.S.A. 1997 Supp. 74-4914e is hereby amended to
read as
follows: 74-4914e. (1) As used in this section:
(a) ``Correctional employee'' means any member of the system
who
is a security officer or other employee of the department of
corrections
and who is in a position for which the duties and responsibilities
involve
regular contact with inmates as certified by the secretary of
corrections;
(b) ``disability'' means the total inability to perform
permanently the
duties of the position of a correctional employee in which the
correctional
employee was employed at the time of disability;
(c) ``service-connected'' means any physical or mental
disability re-
sulting from external force, violence or disease occasioned by an
act of
duty as a correctional employee and includes, for any correctional
em-
ployee after five years of credited service, any death or
disability resulting
from a heart disease or disease of the lung or respiratory tract,
except that
in the event that the correctional employee ceases to be a
contributing
member except by reason of a service-connected disability for a
period
of six months or more and then again becomes a contributing
member
the provision relating to death or disability resulting from a
heart disease
or disease of the lung or respiratory tract shall not apply until
such cor-
rectional employee has again become a contributing member for a
period
of not less than two years or unless clear and precise evidence is
presented
that the heart disease or disease of the lung or respiratory tract
was in
fact occasioned by an act of duty as a correctional employee;
and
(d) ``final average salary'' means the average highest annual
compen-
sation paid to a correctional employee for any three of the last
five years
of participating service immediately preceding the date of
disability, or if
participating service is less than three years, then the average
annual
compensation paid to the correctional employee during the full
period of
participating service or if a correctional employee has less than
one cal-
endar year of participating service the correctional employee's
final av-
erage salary shall be computed by multiplying the correctional
employee's
highest monthly salary received in that year by 12.
(2) If any active contributing correctional employee becomes
totally
and permanently disabled due to service-connected causes as defined
in
subsection (1), such correctional employee shall be retired and the
fol-
lowing benefits shall become payable and shall continue until the
correc-
tional employee's death or until the correctional employee recovers
from
the disability if a report of the event in a form acceptable to the
board is
filed in the office of the executive secretary of the board within
220 days
after the date of the event or act of duty causing such disability
and an
application for such benefit, in such form and manner as the board
shall
prescribe, is filed by the correctional employee or the
correctional em-
ployee's authorized representative in the office of the executive
secretary
of the board within two years of the date of disability:
(a) The correctional employee shall receive a retirement
benefit
equal to 50% of the correctional employee's final average salary.
Such
benefit shall accrue from the day upon which the correctional
employee
ceases to draw compensation.
(b) Each of the correctional employee's unmarried children
under
the age of 18 years or each of the correctional employee's children
under
the age of 23 years who are full-time students as provided in
K.S.A. 74-
49,117 and amendments thereto shall receive an annual benefit equal
to
10% of the correctional employee's final average salary. Such
benefit shall
accrue from the day upon which the correctional employee ceases to
draw
compensation and shall end on the first day of the month in which
each
such child or children attains the age of 18 years, die or marry,
whichever
occurs earlier or in which each such child or children attains the
age of
23 years, if such child or children are full-time students as
provided in
K.S.A. 74-49,117 and amendments thereto.
(c) In no case shall the total benefits payable under
paragraphs (a)
and (b) of this subsection (2) be in excess of 75% of the
correctional
employee's final average salary.
(d) In the event a correctional employee who is retired under
para-
graph (a) of this subsection (2), dies within two years after the
date of
such retirement, then benefits may be payable under subsection (2)
of
K.S.A. 74-4916 and amendments thereto.
(e) In the event a correctional employee who is retired under
para-
graph (a) of this subsection (2), dies more than two years after
the date
of such retirement, and the proximate cause of such death is the
service-
connected cause from which the disability resulted, then benefits
may be
payable under subsection (2) of K.S.A. 74-4916 and amendments
thereto.
(f) In the event a correctional employee who is retired
under subsec- tion (2) dies after the date of retirement and no benefits are
payable under paragraphs (d) and (e) the following benefits shall be
payable:
(i) To the correctional employee's spouse, if lawfully
wedded to the correctional employee at the time of the correctional employee's
death, a lump-sum benefit equal to 50% of the correctional employee's
final av- erage salary at the time of the correctional employee's
retirement.
(ii) To the correctional employee's spouse, if lawfully
wedded to the correctional employee at the time of the correctional employee's
death, an annual benefit equal to 50% of the correctional employee's
retirement benefit payable in monthly installments, to accrue from the
first day of the month following the correctional employee's date of death
and ending on the first day of the month in which the spouse dies. If there
is no surviving spouse, or if after the death of the spouse there
remain one or more children under the age of 18 years or one or more children
under the age of 23 years who is a full-time student as provided in
K.S.A. 74- 49,117, and amendments thereto, the annual spouse's benefit
shall be pay- able in equal shares to such children and each child's share
shall end on the first day of the month in which such child attains the age
of 18 years or dies, whichever occurs earlier or in which such child attains
the age of 23 years, if such child is a full-time student as provided in
K.S.A. 74- 49,117, and amendments thereto.
The provisions of this subsection shall apply in all cases of
such cor- rectional employees who die after October 1, 1996.
(3) If any correctional employee who is an active contributing
mem-
ber prior to such correctional employee's normal retirement
becomes
totally and permanently disabled for a period of 180 days from
causes not
service-connected, and not as the result of a willfully negligent
or inten-
tional act of the correctional employee, such correctional employee
shall
be retired and the following benefit shall become payable and shall
con-
tinue until the correctional employee's death or until the
correctional
employee recovers from such disability whichever occurs first if a
report
of the disability in a form acceptable to the board is filed in the
office of
the executive secretary of the board within 220 days after the date
of the
commencement of such disability and if an application for such
benefit
in such form and manner as the board shall prescribe is filed in
the office
of the executive secretary of the board within two years of the
date of
disability:
A retirement benefit equal to 2% of the correctional employee's
final
average salary multiplied by the number of years of credited
service, ex-
cept that such retirement benefit shall be at least equal to 25% of
the
member's final average salary but not to exceed the amount of the
re-
tirement benefit provided in paragraph (a) of subsection (2). Such
benefit
shall not become payable until satisfactory evidence is presented
to the
board that the correctional employee is and has been for a period
of 180
days totally and permanently disabled, but benefits shall accrue
from the
day upon which the correctional employee ceases to draw
compensation.
(4) Any correctional employee who is employed for compensation
by
an employer other than the department of corrections and whose
disa-
bility is incurred in the course of such other employment shall not
be
eligible for any of the benefits provided in subsection (3).
(5) If a correctional employee becomes totally and permanently
dis-
abled and no benefits are payable under subsections (2) or (3), the
sum
of the correctional employee's accumulated contributions shall be
paid to
the correctional employee.
(6) Any correctional employee receiving benefits under this
section
shall submit to medical examination, not oftener than annually, by
one or
more physicians or any other practitioners of the healing arts
holding a
valid license issued by Kansas state board of healing arts, as the
board of
trustees may direct. If upon such medical examination the examiners
re-
port to the board that the retirant is physically able and capable
of resum-
ing employment with the participating employer from whose
employment
the correctional employee retired, the disability benefits shall
terminate.
A retirant who has been receiving benefits under the provisions of
this
section and who returns to employment of a participating employer
shall
immediately commence accruing service credit which shall be added
to
that which has been accrued by virtue of previous service.
(7) Any retirant who has been receiving benefits under the
provisions
of this section for a period of five years shall be deemed finally
retired
and shall not be subject to further medical examinations, except
that if
the board of trustees shall have reasonable grounds to question
whether
the retirant remains totally and permanently disabled, a further
medical
examination or examinations may be required.
(8) Refusal or neglect to submit to examination as provided in
sub-
section (6) shall be sufficient cause for suspending or
discontinuing ben-
efit payments under this section and if such refusal or neglect
shall con-
tinue for a period of one year, the correctional employee's rights
in and
to all benefits under the system may be revoked by the board.
(9) Any retirement benefits payable under the provisions of
this sec-
tion shall be in lieu of all other benefits under the system.
(10) Each correctional employee shall report to such member's
par-
ticipating employer any event or act of duty causing disability
within 200
days after such event or act of duty. The department of corrections
shall
file in the office of the executive secretary of the board, in a
form ac-
ceptable to the board, a report of the event or act of duty causing
disability
within 220 days after the event or act of duty.
(11) Benefits payable under this section shall be reduced by
the orig-
inal amount of any disability benefits received under the federal
social
security act or the workers compensation act. For any correctional
em-
ployee already retired on the effective date of this act, no
reduction of
the original social security benefits shall be applicable to
benefits paid
prior to the effective date of this act. In no case shall a
correctional em-
ployee who is entitled to receive benefits under this section
receive less
than $100 per month.
(12) The provisions of this section shall apply to
disabilities occurring
after June 30, 1982, and prior to July 1, 1995. At the direction of
the
board of trustees, the actuary shall conduct an experience
evaluation of
benefits payable under this section and the board shall provide
copies of
such study to the governor and members of the legislature.
(13) The provisions of K.S.A. 74-4927 and amendments thereto
re-
lating to insured disability benefits shall not be applicable to
correctional
employees subject to the provisions of this section.
(14) In the event a correctional employee who is retired
under sub- section (3) dies after the date of retirement and no benefits
are payable under that subsection, the following benefits shall be
payable:
(i) To the correctional employee's spouse, if lawfully
wedded to the correctional employee at the time of the correctional employee's
death, a lump-sum benefit equal to 50% of the correctional employee's
final av- erage salary at the time of the correctional employee's
retirement.
(ii) To the correctional employee's spouse, if lawfully
wedded to the correctional employee at the time of the correctional employee's
death, an annual benefit equal to 50% of the correctional employee's
retirement benefit payable in monthly installments, to accrue from the
first day of the month following the correctional employee's date of death
and ending on the first day of the month in which the spouse dies. If there
is no surviving spouse, or if after the death of the spouse there
remain one or more children under the age of 18 years or one or more children
under the age of 23 years who is a full-time student as provided in
K.S.A. 74- 49,117, and amendments thereto, the annual spouse's benefit
shall be pay- able in equal shares to such children and each child's share
shall end on the first day of the month in which such child attains the age
of 18 years or dies, whichever occurs earlier or in which such child attains
the age of 23 years, if such child is a full-time student as provided in
K.S.A. 74- 49,117, and amendments thereto.
The provisions of this subsection shall apply in all cases of
such cor- rectional employees who die after October 1, 1996.
Sec. 19. K.S.A. 1997 Supp. 74-4917 is hereby amended to
read as
follows: 74-4917. (1) Upon termination of employment with a
participat-
ing employer, not followed by employment with such participating
em-
ployer or another participating employer within 30 days of such
termi- nation, the member shall be paid an amount equal to the
member's
accumulated contributions then on deposit with the system after
making
application in such form as may be prescribed by the board, except
that
the system shall have a reasonable time to process the application
for
withdrawal. The participating employer shall, upon giving a
terminated
employee a withdrawal application, certify to the system all member
con-
tributions which have not been reported previously. In the case of
a death
of an active member, the participating employer shall certify to
the system
all member contributions which have not been reported previously
and
remit such contributions if the participating employer has not
submitted
a monthly remittance for the terminating quarter. The participating
em-
ployer shall be responsible to the system for any overpayment or
under-
payment of member contributions made by the system relating to a
with-
drawal of accumulated contributions or a death of an active
member
which is due to an inaccurate certification of all member
contributions
which have not been reported to the system as required by this
section
made by the participating employer. A leave of absence, a period of
total
disability or military service shall not be considered a
termination of em-
ployment unless the member withdraws accumulated contributions.
(2) Except as otherwise provided by this subsection, if such
member
has completed 10 years of credited service at date of termination,
such
member automatically shall be granted a vested retirement benefit
in the
system, except that at any time prior to the commencement of
retirement
benefit payments the member may withdraw accumulated
contributions,
whereupon no other benefits shall be payable for such member's
prior
and participating service credit. For purposes of this subsection,
any em-
ployee of a local governmental unit which has its own pension plan
who
becomes an employee of a participating employer as a result of a
merger
or consolidation of services provided by local governmental units,
which
occurred on January 1, 1994, may count service with such local
govern-
mental unit in determining whether such employee has met the 10
years
of credited service for vesting requirement contained in this
subsection.
Eligibility of such member for retirement benefits and procedures
for
making application for retirement benefits shall be in accordance
with
K.S.A. 74-4914 and amendments thereto. Such member shall make
ap-
plication for retirement in such form as may be prescribed by the
board
and retirement benefits shall accrue from the first day of the
month fol-
lowing receipt of such application. The amount of the retirement
benefit
shall be determined as provided in K.S.A. 74-4915 and
amendments
thereto.
(3) Termination of employment of a member, followed by
employ-
ment with a participating employer within five years after such
termina-
tion, does not constitute a break in continuous employment if such
mem-
ber has not withdrawn accumulated contributions. Such period while
not
employed shall not be credited.
(4) If, after the expiration of five years following the
termination of
employment, a former member becomes an employee of such former
member's former participating employer, or another participating
em-
ployer, such former member shall be deemed to be a new employee.
If
a member, who has a vested benefit again becomes an employee of
a
participating employer, any credited service such member
subsequently
accrues shall be added to that which had been vested by virtue of
previous
service. Eligibility of such member for retirement benefits and
proce-
dures for making application for retirement benefits shall be in
accord-
ance with K.S.A. 74-4914 and amendments thereto.
Sec. 20. K.S.A. 1997 Supp. 74-4919a, as amended by
section 38 of
1998 Senate Bill No. 382, is hereby amended to read as follows:
74-4919a.
(1) An employee of a participating employer who becomes a member
as
provided in K.S.A. 74-4911 and amendments thereto, after
completion
of one year of continuous employment as therein provided may
purchase
participating service credit for such year of employment by making
ap-
plication therefor. Such application and payment may be made at
any
time after the employee becomes a member and continues to be
em-
ployed by a participating employer. Any member of the system who
has
not retired may purchase, subject to the provisions of section 83
and
amendments thereto, such service credit by paying the then present
value
of the retirement benefits based on such service by means of a
single
lump-sum payment in the amount determined by the actuary using
the
member's attained age and the actuarial assumptions and tables
currently
in use by this retirement system. If an employee was employed
before
the participating employer's entry date and did not become a
member
until the first day of the month or the first day of the first
payroll period,
whichever is applicable, coinciding with or following the
completion of
one year continuous employment, the member may purchase, subject
to
the provisions of section 83 and amendments thereto, participating
serv-
ice credit for the period from the participating employer's entry
date until
such member became a member by paying to the system the then
present
value of the retirement benefits based on such service by means of
a
single lump-sum payment in the amount determined by the actuary
using
the member's attained age and the actuarial assumptions and tables
cur-
rently in use by this retirement system.
Notwithstanding any other provision of this subsection, if an
employee purchases such participating service credit within 12 months of
such em- ployee's membership in the system, such employee may purchase
such participating service credit by making application therefor and
paying to the system a lump-sum amount equivalent to 4% of the
compensation paid to such member for personal services during such period. If
an employee
was employed for a partial year after the participating employer's
entry
date and did not become a member at that time, but became a
member
at a later date, the member may purchase, subject to the provisions
of
section 83 and amendments thereto, participating service credit for
such
partial year of employment by paying the then present value of the
re-
tirement benefits based on such service by means of a single
lump-sum
payment in the amount determined by the actuary using the
member's
attained age and the actuarial assumptions and tables currently in
use by
this retirement system.
(2) Any employee of the state of Kansas who was receiving or
was
eligible for assistance by the state board of regents in the
purchase of a
retirement annuity under K.S.A. 74-4925 and amendments thereto,
and
who became ineligible for such assistance prior to the effective
date of
this act because such employee's position was reclassified to a
position in
the classified service under the Kansas civil service act, or who
became
ineligible for such assistance because such person accepted and
trans-
ferred to a position in the classified service under the Kansas
civil service
act, and who becomes a member of the system on the first day of
the
payroll period coinciding with or following the effective date of
this act
in accordance with subsection (5) of K.S.A. 74-4911 and
amendments
thereto, may purchase, subject to the provisions of section 83 and
amend-
ments thereto, participating service credit for the period of
employment
from the effective date of such reclassification or transfer to the
date of
such employee's membership in the system. Such employee may
pur-
chase such participating service credit by making application
therefor and
paying to the system a lump-sum amount equivalent to 4% of the
com-
pensation paid to such member for personal services during such
period
by the state of Kansas or as provided in subsection (3). Such
application
and payment may be made at any time after the employee becomes
a
member and continues to be employed by a participating
employer.
(3) Except as otherwise provided in this subsection, any
member of
the retirement system may purchase, subject to the provisions of
section
83 and amendments thereto, participating service credit for
employment
service as described in this section, if first commenced prior to
January
1, 1996, by electing to effect such purchase by means of having
employee
contributions as provided in K.S.A. 74-4919 and amendments
thereto
deducted from such member's compensation at a percentage rate
equal
to two times or three times the employee's rate of contribution as
pro-
vided in K.S.A. 74-4919 and amendments thereto for such periods
of
service, in lieu of a lump-sum amount as provided in this section.
Such
deductions shall commence at the beginning of the quarter following
such
election and shall remain in effect until all quarters of such
service have
been purchased. Subject to the provisions of section 83 and
amendments
thereto, any person may make any such purchase as described in
this
section, if first commenced in calendar year 1996 or thereafter, at
an
additional rate of contribution, in addition to the employee's rate
of con-
tribution as provided in K.S.A. 74-4919 and amendments thereto,
based
upon the member's attained age at the time of purchase and using
ac-
tuarial assumptions and tables in use by the retirement system at
such
time of purchase, for such periods of service, in lieu of a
lump-sum
amount as provided in this section. Such additional rate of
contribution
shall commence at the beginning of the quarter following such
election
and shall remain in effect until all quarters of such service have
been
purchased. Notwithstanding any other provision of this
subsection, any member of the retirement system, within 12 months of such
member's membership date in the system, may purchase participating
service credit for employment service as described in this section, by electing
to effect such purchase by means of having employee contributions as
provided in K.S.A. 74-4919, and amendments thereto, deducted from such
member's compensation at a percentage rate equal to two times or three
times the employee's rate of contribution as provided in K.S.A. 74-4910,
and amendments thereto, for such periods of service, in lieu of a
lump-sum amount as provided in this section. Such deductions shall
commence at the beginning of the quarter following such election and shall
remain in effect until all quarters of such service have been purchased.
Such pur- chase must be completed within 24 months of such membership date
in the system.
Sec. 21. K.S.A. 1997 Supp. 74-4919h, as amended by
section 44 of
1998 Senate Bill No. 382, is hereby amended to read as follows:
74-4919h.
(1) In addition to any military service credited under the
provisions of
K.S.A. 74-4913 or 74-4936 and amendments thereto, or in the event
that
an active contributing member does not qualify for credit for
military
service as defined in subsection (22) of K.S.A. 74-4902 and
amendments
thereto, such member may purchase, subject to the provisions of
section
83 and amendments thereto, participating credit for periods of
active
service in the armed forces of the United States or in the
commissioned corps of the United States public health service and for
periods of service
required to fulfill the requirements of section 651 of title 10,
United
States code, which are not otherwise creditable, which when added
to
any creditable military service do not exceed six years. Except as
provided
in subsection (4)(a) for such purchase of participating credit for
such
periods of such military service which is the basis for military
pension
rights, such member shall be entitled to purchase one quarter of
partic-
ipating service credit for each year of service required to fulfill
the
requirements of section 651 of title 10, United States code. Except
as
otherwise provided in this section, such purchase shall be effected
by the
member submitting proof of such service acceptable to the board
and, if
first commenced prior to January 1, 1996, electing in writing to
have
employee contributions as provided in K.S.A. 74-4919 and
amendments
thereto deducted from such member's compensation at a percentage
rate
equal to two times or three times the employee's rate of
contribution as
provided in K.S.A. 74-4919 and amendments thereto for such periods
of
service. Such deductions shall commence at the beginning of the
quarter
following such election and shall remain in effect until all of the
full
quarters of such service have been purchased. Any person may make
any
such purchase as described in this section, subject to the
provisions of
section 83 and amendments thereto, if first commenced in calendar
year
1996 or thereafter, at an additional rate of contribution, in
addition to the
employee's rate of contribution as provided in K.S.A. 74-4919 and
amend-
ments thereto, based upon the member's attained age at the time
of
purchase and using actuarial assumptions and tables in use by the
retire-
ment system at such time of purchase, for such periods of service,
in lieu
of a lump-sum amount as provided in this section. Such additional
rate
of contribution shall commence at the beginning of the quarter
following
such election and shall remain in effect until all quarters of such
service
have been purchased.
(2) (a) Such purchase of participating service credit
must be com-
pleted prior to such member's retirement.
(b) For members purchasing such participating service credit on
or
after July 1, 1993, whose purchase is completed within five years
before
such member's retirement, subject to the provisions of section 83
and
amendments thereto, such member shall pay the actuarially
determined
amount by means of a single lump-sum payment or equal annual
pay-
ments which shall be completed prior to retirement. The lump-sum
pay-
ment or annual payments shall be determined by the system's actuary
by
using the member's current annual salary at the time, actuarial
assump-
tions and tables currently in use by the system and the member's
attained
age. Any member who purchases such participating service credit
and
who does not make the lump-sum payment or annual payments as
re-
quired by this subsection shall have any previously credited
service under
this section voided and such member shall be refunded such
member's
payments previously made for such purchase plus interest. The
provisions
of this subsection shall not apply to any member who is employed by
an
institution that is closed or abolished or otherwise ceases
operations or
that is scheduled for such closure, abolition or cessation of
operations and
has a budget reduction imposed that is associated with such
closure, ab-
olition or cessation of operations, and who is laid off from
employment
with such institution for the reason of such closure, abolition or
cessation.
As used in this subsection, ``institution'' means Topeka state
hospital or
Winfield state hospital and training center; and ``laid off''
means, in the
case of a state officer or employee in the classified service under
the
Kansas civil service act, being laid off under K.S.A. 75-2948 and
amend-
ments thereto and in the case of a state officer or employee in the
un-
classified service under the Kansas civil service act, being
terminated from
employment with the state agency by the appointing authority,
except
that ``laid off'' shall not include any separation from employment
pursuant
to budget reduction or expenditure authority reduction and
reduction of
F.T.E. positions under K.S.A. 75-6801 and amendments thereto.
(3) In the event such member has elected to purchase
participating
service credit as provided in K.S.A. 74-4919a to 74-4919e,
inclusive, and
any amendments thereto, the increased employee contributions and
pur-
chase of participating service credit provided herein shall not
commence
until after the purchase of participating service credit under
K.S.A. 74-
4919a to 74-4919e, inclusive, and any amendments thereto, has
been
completed. If a member terminates employment before completing
the
purchase of all participating service credit as such member may be
enti-
tled to, such member shall only receive such credit for those full
quarters
as the percentage rate equal to two times or three times the
employee's
rate of contribution as provided in K.S.A. 74-4919 and
amendments
thereto or those full quarters as the additional rate of
contribution, in
addition to the employee's rate of contribution as provided in
K.S.A. 74-
4919 and amendments thereto has been deducted from such
member's
compensation.
(4) (a) Any member of the system who has not yet retired
may pur-
chase participating service credit for military service as
described in this
section which is the basis for military pension rights at an
additional rate
of contribution in addition to the employee's rate of contribution
as pro-
vided in K.S.A. 74-4919 and amendments thereto, based upon the
mem-
ber's attained age at the time of purchase and using actuarial
assumptions
and tables in use by the retirement system at the time of such
purchase.
Such additional rate of contribution shall commence at the
beginning of
the quarter following such election and shall remain in effect
until all
quarters of such service have been purchased. Any such member
may
purchase, subject to the provisions of section 83 and amendments
thereto,
participating service credit for military service as described in
this section
by electing to effect such purchase by means of a single lump-sum
pay-
ment in lieu of employee contributions as provided in this section.
The
lump-sum payment shall be an amount determined by the actuary
using
the member's then current annual rate of compensation, or if not
actively
employed, the member's annual rate of compensation when last
partici-
pating, the actuarial assumptions and tables currently in use by
the re-
tirement system and the member's attained age.
(b) Any member of the retirement system who has not retired
may
purchase, subject to the provisions of section 83 and amendments
thereto,
participating service credit for military service as described in
this section
which is not the basis for military pension rights by electing to
effect such
purchase by means of a single lump-sum payment in lieu of
employee
contributions as provided in this section. The lump-sum payment
shall
be an amount determined by the actuary using the member's then
current
annual rate of compensation, or if not actively employed, the
member's
annual rate of compensation when last participating, the actuarial
as-
sumptions and tables currently in use by the retirement system and
the
member's attained age.
Sec. 22. K.S.A. 74-4919i, as amended by section 45 of
1998 Senate
Bill No. 382, is hereby amended to read as follows: 74-4919i. Any
person
who becomes a member of the Kansas public employees retirement
sys-
tem pursuant to subsection (14) of K.S.A. 74-4902, subsection (4)
of
K.S.A. 74-4932, K.S.A. 74-4911c, K.S.A. 74-4911d or K.S.A.
74-4919k
and amendments thereto, may elect to purchase additional benefits
for
any service performed during the period that such person was
barred
from membership in the Kansas public employees retirement
system,
except that no person shall purchase additional benefits for any
service
which is the basis or will become the basis for retirement credit
or benefits
under a retirement annuity under the provisions of K.S.A. 74-4925
and
amendments thereto. As used in this section, ``annual
compensation'' means the rate of annual compensation being paid to such
member by the participating employer on the date of application to
purchase addi- tional benefits.At the election of the member
the benefit for each year of service shall be equal to either 1% or 1.75% of the final
average salary of any such member. For any member who elected to purchase service
credit as provided in this section prior to the effective date of this
act at the 1% rate, such member may elect to purchase such service credit at
an addi- tional amount of .75% of final average salary of such member in
a lump- sum amount as otherwise provided in this subsection. Such
member may
purchase additional benefits by making application therefor
at least three years prior to date of retirement and, subject to
the provisions of section
83 and amendments thereto, by makingat an
additional rate of contri- bution in addition to the employee's rate of contribution as
provided in K.S.A. 74-4919 and amendments thereto, based upon the member's
at- tained age at the time of purchase and using actuarial
assumptions and tables in use by the retirement system at the time of such
purchase. Such additional rate of contribution shall commence at the beginning
of the quarter following such election and shall remain in effect until
all quarters of such service have been purchased. Any such member may
purchase service as described in this section by electing to effect such
purchase by means of a single lump-sum payment in lieu of employee
contributions as provided in this section in an amount equal to the then
present value of
the benefits being purchased as determined by the actuary using
the
member's attained age, annual compensation at the time of purchase
and
the actuarial assumptions and tables then in use by the system. The
lump-
sum payment shall be made immediately upon being notified of
the
amount due. The benefit for each such year of service shall
be equal to 1% of the annual compensation at the time the member
purchases such additional benefits.
Sec. 23. K.S.A. 1997 Supp. 74-4919n, as amended by
section 49 of
1998 Senate Bill No. 382, is hereby amended to read as follows:
74-4919n.
Any employee of a participating employer who is a member of the
Kansas
public employees retirement system, who was previously employed
in
another state in nonfederal governmental employment and which
service
otherwise meets the requirements of an employee as prescribed in
sub-
section (14) of K.S.A. 74-4902 or subsection (4) of K.S.A. 74-4932
and
amendments thereto, may elect to purchase, subject to the
provisions of
section 83 and amendments thereto, prior service
for such out-of-state
nonfederal governmental employment. At the election of the
member, the
benefit for each such year of employment shall be equal to
either 1% or 1.75% of the final average salary of any such member. For
any member who elected to purchase service credit as provided in this
section prior to the effective date of this act at the 1% rate, such member may
elect to purchase such service credit at an additional amount of .75% of
final average salary of such member in a lump-sum amount as otherwise
pro- vided in this subsection. Such member may purchase such
prior service
by making application therefor prior to date of retirement at an
additional
rate of contribution in addition to the employee's rate of
contribution as
provided in K.S.A. 74-4919 and amendments thereto, based upon
the
member's attained age at the time of purchase and using actuarial
as-
sumptions and tables in use by the retirement system at the time of
such
purchase. Such additional rate of contribution shall commence at
the
beginning of the quarter following such election and shall remain
in effect
until all quarters of such service have been purchased. Subject to
the
provisions of section 83 and amendments thereto, any such member
may
purchase such prior service as described in this
section by electing to
effect such purchase by means of a single lump-sum payment in lieu
of
employee contributions as provided in this section in an amount
equal to
the then present value of the benefits being purchased as
determined by
the actuary using the member's attained age, annual compensation at
the
time of purchase and the actuarial assumptions and tables then in
use by
this system. The lump-sum payment shall be made immediately
upon
being notified of the amount due.
Sec. 24. K.S.A. 1997 Supp. 74-4919p is hereby amended to
read as
follows: 74-4919p. Any member may purchase prior
service for periods
of service in the United States peace corps which commenced on or
after
January 1, 1962. At the election of the member, the benefit
for each such
period of service shall be equal to either 1% or
1.75% of the final average
salary of any such member. For any member who elected to
purchase service credit as provided in this section prior to the
effective date of this act at the 1% rate, such member may elect to purchase such
service credit at an additional amount of .75% of final average salary of such
member in a lump-sum amount as otherwise provided in this
subsection. Such
member may purchase such prior service by making
application therefor
prior to date of retirement at an additional rate of contribution
in addition
to the employee's rate of contribution as provided in K.S.A.
74-4919 and
amendments thereto, based upon the member's attained age at the
time
of purchase and using actuarial assumptions and tables in use by
the
retirement system at the time of such purchase. Such additional
rate of
contribution shall commence at the beginning of the quarter
following
such election and shall remain in effect until all quarters of such
service
have been purchased. Any such member may purchase
prior service as
described in this section by electing to effect such purchase by
means of
a single lump-sum payment in lieu of employee contributions as
provided
in this section in an amount equal to the then present value of the
benefits
being purchased as determined by the actuary using the member's
at-
tained age, annual compensation at the time of purchase and the
actuarial
assumptions and tables then in use by this system. The lump-sum
pay-
ment shall be made immediately upon being notified of the amount
due.
No participating employer shall pay the cost, or any part thereof,
of any prior service authorized to be purchased by a
member under this section.
The provisions of this section shall be effective on and after July
1, 1996.
Sec. 25. K.S.A. 1997 Supp. 74-4919q is hereby amended to
read as
follows: 74-4919q. Any employee of a participating employer who is
a
member of the Kansas public employees retirement system, who
was
previously employed as an employee of the memorial union
corporation
which is affiliated with Emporia state university, may elect to
purchase prior service for such employment. At the
election of the member, the
benefit for each such year of employment shall be equal to
either 1% or 1.75% of the final average salary of any such member. For
any member who elected to purchase service credit as provided in this
section prior to the effective date of this act at the 1% rate, such member may
elect to purchase such service credit at an additional amount of .75% of
final average salary of such member in a lump-sum amount as otherwise
pro- vided in this subsection. Such member may purchase such
prior service
by making application therefor prior to date of retirement at an
additional
rate of contribution in addition to the employee's rate of
contribution as
provided in K.S.A. 74-4919 and amendments thereto, based upon
the
member's attained age at the time of purchase and using actuarial
as-
sumptions and tables in use by the retirement system at the time of
such
purchase. Such additional rate of contribution shall commence at
the
beginning of the quarter following such election and shall remain
in effect
until all quarters of such service have been purchased. Any such
member
may purchase prior service as described in this
section by electing to
effect such purchase by means of a single lump-sum payment in lieu
of
employee contributions as provided in this section in an amount
equal to
the then present value of the benefits being purchased as
determined by
the actuary using the member's attained age, annual compensation at
the
time of purchase and the actuarial assumptions and tables then in
use by
this system. The lump-sum payment shall be made immediately
upon
being notified of the amount due. No participating employer shall
pay
the cost, or any part thereof, of any prior
service authorized to be pur-
chased by a member under this section. The provisions of this
section
shall be effective on and after July 1, 1996.
Sec. 26. K.S.A. 1997 Supp. 74-4920 is hereby amended to
read as
follows: 74-4920. (1) (a) Upon the basis of each annual
actuarial valuation
and appraisal as provided for in subsection (3)(a) of K.S.A.
74-4908 and
amendments thereto, the board shall certify, on or before July 15
of each
year, to the division of the budget in the case of the state and to
the agent
for each other participating employer an actuarially determined
estimate
of the rate of contribution which will be required, together with
all ac-
cumulated contributions and other assets of the system, to be paid
by
each such participating employer to pay all liabilities which shall
exist or
accrue under the system, including amortization of the actuarial
accrued
liability over a period of 40 years commencing on July 1, 1993, and
the
actuarial accrued liability for members of the faculty and other
persons
who are employed by the state board of regents or by educational
insti-
tutions under its management assisted by the state board of regents
in
the purchase of retirement annuities as provided in K.S.A. 74-4925
and
amendments thereto, as provided in this section. The actuarial
accrued
liability for all participating employers other than the state
board of re-
gents relating to members of the faculty and other persons
described in
this section, shall be amortized by annual payments that increase
4% for
each year remaining in the amortization period. For all
participating em-
ployers other than the state board of regents relating to members
of the
faculty and other persons described in this section, the projected
unit
credit actuarial cost method shall be used in annual actuarial
valuations,
commencing with the 1993 valuation, to determine the employer
contri-
bution rates that shall be certified by the board. The actuarial
accrued
liability for members of the faculty and other persons described in
this
subsection assisted by the state board of regents in the purchase
of re-
tirement annuities as provided in K.S.A. 74-4925 and amendments
thereto shall be amortized by annual level payments over a period
of 10 11 years commencing July 1, 1993. Such certified rate of
contribution
shall be based on the standards set forth in subsection (3)(a) of
K.S.A.
74-4908 and amendments thereto and shall not be based on any
other
purpose outside of the needs of the system.
(b) (i) For employers affiliating on and after January
1, 1999, upon the basis of an annual actuarial valuation and appraisal of the
system conducted in the manner provided for in K.S.A. 74-4908 and
amendments thereto, the board shall certify, on or before July 15 of each
year to each such employer an actuarially determined estimate of the rate of
contri- bution which shall be required to be paid by each such employer
to pay all of the liabilities which shall accrue under the system from
and after the entry date as determined by the board, upon recommendation
of the actuary. Such rate shall be termed the employer's participating
service contribution and shall be uniform for all participating
employers. Such additional liability shall be amortized over a period of 34
years com- mencing on July 1, 1999, by annual payments that increase 4% for
each year remaining in the amortization period. For all participating
employers described in this section, the projected unit credit actuarial
cost method shall be used in annual actuarial valuations to determine the
employer contribution rates that shall be certified by the
board.
(ii) The board shall determine for each such employer
separately an amount sufficient to amortize over a period of not to exceed 34
years commencing July 1, l999, all liabilities for prior service costs
which shall have accrued at the time of entry into the system. On the basis
of such determination the board shall annually certify to each such
employer sep- arately an actuarially determined estimate of the rate of
contribution which shall be required to be paid by that employer to pay all
of the liabilities for such prior service costs. Such rate shall be
termed the em- ployer's prior service contribution.
(2) The division of the budget and the governor shall include
in the
budget and in the budget request for appropriations for personal
services
the sum required to satisfy the state's obligation under this act
as certified
by the board and shall present the same to the legislature for
allowance
and appropriation.
(3) Each other participating employer shall appropriate and
pay to
the system a sum sufficient to satisfy the obligation under this
act as
certified by the board.
(4) Each participating employer is hereby authorized to pay
the em-
ployer's contribution from the same fund that the compensation for
which
such contribution is made is paid from or from any other funds
available
to it for such purpose. Each political subdivision, other than an
instru-
mentality of the state, which is by law authorized to levy taxes
for other
purposes, may levy annually at the time of its levy of taxes, a tax
which
may be in addition to all other taxes authorized by law for the
purpose of
making its contributions under this act and, in the case of cities
and coun-
ties, to pay a portion of the principal and interest on bonds
issued under
the authority of K.S.A. 12-1774 and amendments thereto by cities
located
in the county, which tax, together with any other fund available,
shall be
sufficient to enable it to make such contribution. In lieu of
levying the
tax authorized in this subsection, any taxing subdivision may pay
such
costs from any employee benefits contribution fund established
pursuant
to K.S.A. 12-16,102 and amendments thereto. Each participating
em-
ployer which is not by law authorized to levy taxes as described
above,
but which prepares a budget for its expenses for the ensuing year
and
presents the same to a governing body which is authorized by law to
levy
taxes as described above, may include in its budget an amount
sufficient
to make its contributions under this act which may be in addition
to all
other taxes authorized by law. Such governing body to which the
budget
is submitted for approval, may levy a tax sufficient to allow the
partici-
pating employer to make its contributions under this act, which
tax, to-
gether with any other fund available, shall be sufficient to enable
the
participating employer to make the contributions required by this
act.
(5) The rate of contribution certified to a participating
employer as
provided in this section shall apply during the fiscal year of the
partici-
pating employer which begins in the second calendar year following
the
year of the actuarial valuation. For the fiscal year commencing in
calendar
year 1993, the employer rate of contribution for the state of
Kansas and
for participating employers under K.S.A. 74-4931 and amendments
thereto shall be 3.1% of the amount of compensation upon which
mem-
bers contribute during the period. For the fiscal year commencing
in
calendar year 1994, the employer rate of contribution for the state
of
Kansas and for participating employers under K.S.A. 74-4931 and
amend-
ments thereto shall be 3.2% of the amount of compensation upon
which
members contribute during the period. For the fiscal year
commencing
in calendar year 1994, the employer rate of contribution for
participating
employers other than the state of Kansas shall be 2.2% of the
amount of
compensation upon which members contribute during the period.
Except
as specifically provided in this section, for the fiscal year
commencing in
calendar year 1995, the rate of contribution certified to a
participating
employer shall in no event exceed such participating employer's
contri-
bution rate for the immediately preceding fiscal year by more than
0.1%
of the amount of compensation upon which members contribute
during
the period. Except as specifically provided in this section, for
fiscal years
commencing in calendar year 1996 and in each subsequent calendar
year,
the rate of contribution certified to the state of Kansas shall in
no event
exceed the state's contribution rate for the immediately preceding
fiscal
year by more than 0.2% of the amount of compensation upon which
members contribute during the period. Except as specifically
provided in
this section, for fiscal years commencing in calendar year 1997 and
in
each subsequent calendar year, the rate of contribution certified
to par-
ticipating employers other than the state of Kansas shall in no
event ex-
ceed such participating employer's contribution rate for the
immediately
preceding fiscal year by more than 0.15% of the amount of
compensation
upon which members contribute during the period. There shall be
an
employer rate of contribution certified to the state of Kansas and
partic-
ipating employers under K.S.A. 74-4931 and amendments thereto.
There
shall be a separate employer rate of contribution certified to all
other
participating employers other than the state of Kansas.
(6) The actuarial cost of any legislation enacted in the 1994
session
of the Kansas legislature will be included in the June 30, 1994,
actuarial
valuation in determining contribution rates for participating
employers.
(7) The actuarial cost of the provisions of section 50 will
be included in the June 30, 1998, actuarial valuation in determining
contribution rates for participating employers. The actuarial accrued liability
incurred for the provisions of section 50 shall be amortized over 15
years.
(8) The board with the advice of the actuary may fix
the contribution
rates for participating employers joining the system after one year
from
the first entry date or for employers who exercise the option
contained
in K.S.A. 74-4912 and amendments thereto at rates different from
the
rate fixed for employers joining within one year of the first entry
date.
(9) For employers affiliating on and after January 1, 1999,
the rates of contribution certified to the participating employer as
provided in this section shall apply during the fiscal year immediately following
such cer- tification, but the rate of contribution during the first year
following the employer's entry date shall be equal to 7% of the amount of
compensation on which members contribute during the year. Any amount of such
first year's contribution which may be in excess of the necessary
current service contribution shall be credited by the board to the respective
employer's prior service liability.
(8)(10) Employer contributions shall
in no way be limited by any
other act which now or in the future establishes or limits the
compen-
sation of any member.
(9)(11) Notwithstanding any provision of
law to the contrary, each
participating employer shall remit quarterly, or as the board may
other-
wise provide, all employee deductions and required employer
contribu-
tions to the executive secretary for credit to the Kansas public
employees
retirement fund within 20three days after
the end of the period covered
by the remittance or within 25 days after forms or written
instructions from the system were mailed by the system to such employer,
whichever is laterby electronic funds transfer.
Remittances of such deductions and
contributions received after such date are delinquent. Delinquent
pay-
ments due under this subsection shall be subject to interest at the
rate
established for interest on judgments under subsection (a) of
K.S.A. 16-
204 and amendments thereto. At the request of the board,
delinquent
payments which are due or interest owed on such payments, or both,
may
be deducted from any other moneys payable to such employer by
any
department or agency of the state.
Sec. 27. K.S.A. 1997 Supp. 74-4921 is hereby amended to
read as
follows: 74-4921. (1) There is hereby created in the state treasury
the
Kansas public employees retirement fund. All employee and
employer
contributions shall be deposited in the state treasury to be
credited to the
Kansas public employees retirement fund. The fund is a trust fund
and
shall be used solely for the exclusive purpose of providing
benefits to
members and member beneficiaries and defraying reasonable
expenses
of administering the fund. Investment income of the fund shall be
added
or credited to the fund as provided by law. All benefits payable
under the
system, refund of contributions and overpayments, purchases or
invest-
ments under the law and expenses in connection with the system
unless
otherwise provided by law shall be paid from the fund. The director
of
accounts and reports is authorized to draw warrants on the state
treasurer
and against such fund upon the filing in the director's office of
proper
vouchers executed by the chairperson or the executive secretary of
the
board. As an alternative, payments from the fund may be made by
credits
to the accounts of recipients of payments in banks, savings and
loan as-
sociations and credit unions. A payment shall be so made only upon
the
written authorization and direction of the recipient of payment and
upon
receipt of such authorization such payments shall be made in
accordance
therewith. Orders for payment of such claims may be contained on
(a) a
letter, memorandum, telegram, computer printout or similar writing,
or
(b) any form of communication, other than voice, which is
registered upon
magnetic tape, disc or any other medium designed to capture and
contain
in durable form conventional signals used for the electronic
communi-
cation of messages.
(2) The board shall have the responsibility for the management
of
the fund and shall discharge the board's duties with respect to the
fund
solely in the interests of the members and beneficiaries of the
system for
the exclusive purpose of providing benefits to members and such
mem-
ber's beneficiaries and defraying reasonable expenses of
administering
the fund and shall invest and reinvest moneys in the fund and
acquire,
retain, manage, including the exercise of any voting rights and
disposal of
investments of the fund within the limitations and according to the
pow-
ers, duties and purposes as prescribed by this section.
(3) Moneys in the fund shall be invested and reinvested to
achieve
the investment objective which is preservation of the fund to
provide
benefits to members and member beneficiaries, as provided by law
and
accordingly providing that the moneys are as productive as
possible, sub-
ject to the standards set forth in this act. No moneys in the fund
shall be
invested or reinvested if the sole or primary investment objective
is for
economic development or social purposes or objectives.
(4) In investing and reinvesting moneys in the fund and in
acquiring,
retaining, managing and disposing of investments of the fund, the
board
shall exercise the judgment, care, skill, prudence and diligence
under the
circumstances then prevailing, which persons of prudence,
discretion and
intelligence acting in a like capacity and familiar with such
matters would
use in the conduct of an enterprise of like character and with like
aims
by diversifying the investments of the fund so as to minimize the
risk of
large losses, unless under the circumstances it is clearly prudent
not to
do so, and not in regard to speculation but in regard to the
permanent
disposition of similar funds, considering the probable income as
well as
the probable safety of their capital.
(5) Notwithstanding subsection (4): (a) Total investments in
common
stock may be made in the amount of up to 60% of the total book
value
of the fund;
(b) the board may invest or reinvest moneys of the fund in
alternative
investments if the following conditions are satisfied:
(i) The total of such alternative investments does not exceed
more
than 5% of the total investment assets of the fund. If the total of
such
alternative investments exceeds more than 5% of the total
investment
assets of the fund on the effective date of this act, the board
shall not
invest or reinvest any moneys of the fund in alternative
investments until
the total of such alternative investments is less the 5% of the
total in-
vestment assets of the fund subject to the 5% limitation contained
in this
subsection. Nothing in this subsection requires the board to
liquidate or
sell the system's holdings in any alternative investment held by
the system
on the effective date of this act, unless such liquidation or sale
would be
in the best interest of the members and beneficiaries of the system
and
be prudent under the standards contained in this section. The 5%
limi-
tation contained in this section shall not have been violated if
the total of
such alternative investments exceeds 5% of the total investment
assets of
the fund as a result of market forces acting to increase the value
of such
alternative investments relative to the rest of the system's
investments;
however, the board shall not invest or reinvest any moneys of the
fund
in alternative investments until the total of such alternative
investments
is less than 5% of the total investment assets of the fund subject
to the
5% limitation contained in this subsection;
(ii) if in addition to the system, there are at least two
other sophisti-
cated investors, as defined by section 301 of the securities and
exchange
act of 1933;
(iii) the system's share in any individual alternative
investment is lim-
ited to an investment representing not more than 20% of any such
indi-
vidual alternative investment;
(iv) the system has received a favorable and appropriate
recommen-
dation from a qualified, independent expert in investment
management
or analysis in that particular type of alternative investment;
(v) the alternative investment is consistent with the system's
invest-
ment policies and objectives as provided in subsection (6);
(vi) the individual alternative investment does not exceed
more than
2.5% of the total alternative investments made under this
subsection. If
the alternative investment is made pursuant to participation by the
system
in a multi-investor pool, the 2.5% limitation contained in this
subsection
is applied to the underlying individual assets of such pool and not
to
investment in the pool itself. The total of such alternative
investments
made pursuant to participation by the system in any one individual
multi-
investor pool shall not exceed more than 20% of the total of
alternative
investments made by the system pursuant to this subsection. Nothing
in
this subsection requires the board to liquidate or sell the
system's holdings
in any alternative investments made pursuant to participation by
the sys-
tem in any one individual multi-investor pool held by the system on
the
effective date of this act, unless such liquidation or sale would
be in the
best interest of the members and beneficiaries of the system and be
pru-
dent under the standards contained in this section. The 20%
limitation
contained in this subsection shall not have been violated if the
total of
such investment in any one individual multi-investor pool exceeds
20%
of the total alternative investments of the fund as a result of
market forces
acting to increase the value of such a multi-investor pool relative
to the
rest of the system's alternative investments; however, the board
shall not
invest or reinvest any moneys of the fund in any such individual
multi-
investor pool until the value of such individual multi-investor
pool is less
than 20% of the total alternative investments of the fund;
(vii) the board has received and considered the investment
manager's
due diligence findings submitted to the board as required by
subsection
(6)(c); and
(viii) prior to the time the alternative investment is made,
the system
has in place procedures and systems to ensure that the investment
is
properly monitored and investment performance is accurately
measured.
For purposes of this act, ``alternative investment'' means
nontraditional
investments outside the established nationally recognized public
stock
exchanges and government securities market. Alternative
investments
shall include, but not be limited to, private placements, venture
capital,
partnerships, limited partnerships and leveraged buyout
partnerships;
(c) except as otherwise provided, the board may invest or
reinvest
moneys of the fund in real estate investments if the following
conditions
are satisfied:
(i) If, in addition to the system, there are at least
two other sophis- ticated investors, as defined by section 301 of the
securities and exchange act of 1933;
(ii) the system's share in any individual real estate
investment is lim- ited to an investment representing not more than 20% of any
such indi- vidual real estate investment;
(iii) The system has received a favorable and
appropriate recommen-
dation from a qualified, independent expert in investment
management
or analysis in that particular type of real estate investment;
(iv)(ii) the real estate investment
is consistent with the system's in-
vestment policies and objectives as provided in subsection (6);
and
(v) the total of such real estate investments made
pursuant to partic- ipation by the system in any one individual multi-investor
pool shall not exceed more than 20% of the total of real estate
investments made by the system pursuant to this subsection. Nothing in this
subsection re- quires the board to liquidate or sell the system's holdings
in any real estate investments made pursuant to participation by the system in
any one individual multi-investor pool held by the system on the
effective date of this act, unless such liquidation or sale would be in the
best interest of the members and beneficiaries of the system and be prudent
under the standards contained in this section. The 20% limitation
contained in this subsection shall not have been violated if the total of
such investment in any one individual multi-investor pool exceeds 20% of the
total real estate investments of the fund as a result of market forces acting
to increase the value of such a multi-investor pool relative to the rest of
the system's real estate investments; however, the board shall not invest or
reinvest any moneys of the fund in any such individual multi-investor
pool until the value of such individual multi-investor pool is less than
20% of the total real estate investments of the fund;
(vi)(iii) the board has received and
considered the investment man-
ager's due diligence findings submitted to the board as required by
sub-
section (6)(c);
(vii) prior to the time the real estate investment is
made, the system has in place procedures and systems to ensure that the
investment is properly monitored and investment performance is accurately
measured; and
(viii) the provisions of this subsection shall not
apply to any real estate investment held by the system on July 1, 1992;
and
(d) the board shall not invest or reinvest moneys of the fund
in any
banking institution, savings and loan association or credit union
which
positions the system as a shareholder or owner of such banking
institution,
savings and loan association or credit union.
(6) Subject to the objective set forth in subsection (3) and
the stan-
dards set forth in subsections (4) and (5) the board shall
formulate policies
and objectives for the investment and reinvestment of moneys in the
fund
and the acquisition, retention, management and disposition of
invest-
ments of the fund. Such policies and objectives shall include:
(a) Specific asset allocation standards and objectives;
(b) establishment of criteria for evaluating the risk versus
the poten-
tial return on a particular investment;
(c) a requirement that all investment managers submit such
man-
ager's due diligence findings on each investment to the board or
invest-
ment advisory committee for approval or rejection prior to making
any
alternative investment;
(d) a requirement that all investment managers shall
immediately re-
port all instances of default on investments to the board and
provide the
board with recommendations and options, including, but not limited
to,
curing the default or withdrawal from the investment; and
(e) establishment of criteria that would be used as a
guideline for
determining when no additional add-on investments or
reinvestments
would be made and when the investment would be liquidated.
The board shall review such policies and objectives, make changes
con-
sidered necessary or desirable and readopt such policies and
objectives
on an annual basis.
(7) The board may enter into contracts with one or more
persons
whom the board determines to be qualified, whereby the persons
under-
take to perform the functions specified in subsection (2) to the
extent
provided in the contract. Performance of functions under contract
so
entered into shall be paid pursuant to rates fixed by the board
subject to
provisions of appropriation acts and shall be based on specific
contractual
fee arrangements. The system shall not pay or reimburse any
expenses of
persons contracted with pursuant to this subsection, except that
after
approval of the board, the system may pay approved investment
related
expenses subject to provisions of appropriation acts. The board
shall re-
quire that a person contracted with to obtain commercial insurance
which
provides for errors and omissions coverage for such person in an
amount
to be specified by the board, provided that such coverage shall be
at least
the greater of $500,000 or 1% of the funds entrusted to such person
up
to a maximum of $10,000,000. The board shall require a person
con-
tracted with to give a fidelity bond in a penal sum as may be fixed
by law
or, if not so fixed, as may be fixed by the board, with corporate
surety
authorized to do business in this state. Such persons contracted
with the
board pursuant to this subsection and any persons contracted with
such
persons to perform the functions specified in subsection (2) shall
be
deemed to be agents of the board and the system in the performance
of
contractual obligations.
(8) (a) In the acquisition or disposition of securities,
the board may
rely on the written legal opinion of a reputable bond attorney or
attorneys,
the written opinion of the attorney of the investment counselor or
man-
agers, or the written opinion of the attorney general certifying
the legality
of the securities.
(b) The board shall employ or retain qualified investment
counsel or
counselors or may negotiate with a trust company to assist and
advise in
the judicious investment of funds as herein provided.
(9) (a) Except as provided in subsection (7) and this
subsection, the
custody of money and securities of the fund shall remain in the
custody
of the state treasurer, except that the board may arrange for the
custody
of such money and securities as it considers advisable with one or
more
member banks or trust companies of the federal reserve system or
with
one or more banks in the state of Kansas, or both, to be held in
safe-
keeping by the banks or trust companies for the collection of the
principal
and interest or other income or of the proceeds of sale. The
services
provided by the banks or trust companies shall be paid pursuant to
rates
fixed by the board subject to provisions of appropriation acts.
(b) The state treasurer and the board shall collect the
principal and
interest or other income of investments or the proceeds of sale of
secu-
rities in the custody of the state treasurer and pay same when so
collected
into the fund.
(c) The principal and interest or other income or the proceeds
of sale
of securities as provided in clause (a) of this subsection (9)
shall be re-
ported to the state treasurer and the board and credited to the
fund.
(10) The board shall with the advice of the director of
accounts and
reports establish the requirements and procedure for reporting any
and
all activity relating to investment functions provided for in this
act in order
to prepare a record monthly of the investment income and changes
made
during the preceding month. The record will reflect a detailed
summary
of investment, reinvestment, purchase, sale and exchange
transactions
and such other information as the board may consider advisable to
reflect
a true accounting of the investment activity of the fund.
(11) The board shall provide for an examination of the
investment
program annually. The examination shall include an evaluation of
current
investment policies and practices and of specific investments of
the fund
in relation to the objective set forth in subsection (3), the
standard set
forth in subsection (4) and other criteria as may be appropriate,
and rec-
ommendations relating to the fund investment policies and practices
and
to specific investments of the fund as are considered necessary or
desir-
able. The board shall include in its annual report to the governor
as pro-
vided in K.S.A. 74-4907, and amendments thereto, a report or a
summary
thereof covering the investments of the fund.
(12) (a) The legislative post auditor shall conduct an
annual financial-
compliance audit of the system, performance audits of the system as
pre-
scribed by this section and under the Kansas governmental
operations
law, and such other audits as are directed by the legislative post
audit
committee under the Kansas legislative post audit act. The annual
finan-
cial-compliance audit shall include, but not be limited to, a
review of
alternative investments of the system with any estimates of
permanent
impairments to the value of such alternative investments reported
by the
system pursuant to K.S.A. 74-4907, and amendments thereto.
(b) Except as otherwise provided by this subsection, the
legislative
post auditor shall conduct annual performance audits, as directed
by the
legislative post audit committee, which shall include, but not be
limited
to, one or more of the following subjects: An evaluation of the
perform-
ance of investment managers, an evaluation of the rates of return
of in-
vestments reported by the system, an evaluation of the total
compensation
received for the planned year by investment managers by individual
in-
vestment classification, and a comparison of the system's
investment prac-
tices and performance with the investment practices and performance
of
other state pension programs by asset type, including all asset
types de-
scribed as alternative investments in subsection (5)(b). Commencing
with
the performance audit for the fiscal year ending June 30, 1994, the
leg-
islative post audit committee shall specify which of the subjects
listed in
this subsection shall be included in each performance audit
conducted
pursuant to this subsection, in addition to such other subjects as
may be
directed to be included in the performance audit by the legislative
post
audit committee. Commencing with the performance audit for the
fiscal
year ending June 30, 1994, each of the subjects listed in this
subsection
shall be included at least once every two fiscal years in a
performance
audit conducted pursuant to this subsection, excluding any fiscal
year
during which the system and the board are subject to review and
evalu-
ation by the legislature under the Kansas governmental operations
ac-
countability law. Except as otherwise directed by the legislative
post audit
committee, no performance audit shall be conducted pursuant to
this
subsection during any fiscal year when the system and the board
are
subject to a performance audit and to review and evaluation under
the
Kansas governmental operations accountability law.
(c) The auditor to conduct any audit required pursuant to this
sub-
section shall be specified in accordance with K.S.A. 46-1122, and
amend-
ments thereto. If the legislative post audit committee specifies
under such
statute that a firm, as defined by K.S.A. 46-1112, and
amendments
thereto, is to perform all or part of the audit work of such audit,
such
firm shall be selected and shall perform such audit work as
provided in
K.S.A. 46-1123, and amendments thereto, and K.S.A. 46-1125
through
46-1127, and amendments thereto. The audits required pursuant to
this
subsection shall be conducted in accordance with generally accepted
gov-
ernmental auditing standards. The audits required pursuant to this
sub-
section shall be conducted as soon after the close of the fiscal
year as
practicable, but shall be completed no later than six months after
the
close of the fiscal year. The post auditor shall annually compute
the rea-
sonably anticipated cost of providing the financial-compliance
audit pur-
suant to this section, subject to review and approval by the
contract audit
committee established by K.S.A. 46-1120, and amendments
thereto.
Upon such approval, the system shall reimburse the division of post
audit
for the amount approved by the contract audit committee. The
furnishing
of the financial-compliance audit pursuant to this section shall be
a trans-
action between the legislative post auditor and the system and
shall be
settled in accordance with the provisions of K.S.A. 75-5516, and
amend-
ments thereto.
(d) Any internal assessment or examination of alternative
investments
of the system performed by any person or entity employed or
retained
by the board which evaluates or monitors the performance of
alternative
investments shall be reported to the legislative post auditor so
that such
report may be reviewed in accordance with the annual audits
provided in
subsection (12)(a).
Sec. 28. K.S.A. 74-4924 is hereby amended to read as
follows: 74-
4924. (1) Any person who shall knowingly make any false
statement, or
who shall falsify or permit to be falsified any record necessary
for carrying
out the intent of this act for the purpose of committing fraud,
shall be guilty of a misdemeanor, and upon conviction shall be
punished by a fine not exceeding five hundred dollars ($500) or by
imprisonment for not exceeding one (1) yearsubject to the
provisions of K.S.A. 21-3904 and amendments thereto.
(2) Should any error in any records or in any
calculation of the Kansas
public employees retirement system result in any member or
beneficiary
receiving more or less than he would have been entitled to receive
had
the records or calculations been correct, the board shall correct
such
error, and, as far as practicable, make future payments in such a
manner
that the actuarial equivalent of the benefit to which such member
or
beneficiary was entitled shall be paid, and to this
endand may recover
any overpayments:Provided,. In the event a member has
withdrawn, all
or part of, hissuch member's accumulated
contributions in a manner not
in compliance with the provisions of this act or the regulations of
the
system the amount of such withdrawal, plus interest at a rate
specified
by the board, shall be deducted from any amounts, including group
in-
surance benefits, which shall become due the member or
hissuch mem- ber's beneficiaries under the provisions of this act.
Sec. 29. K.S.A. 1997 Supp. 74-4927, as amended by section
53 of
1998 Senate Bill No. 382, is hereby amended to read as follows:
74-4927.
(1) The board may establish a plan of death and long-term
disability ben-
efits to be paid to the members of the retirement system as
provided by
this section. The long-term disability benefit shall not be payable
until
the member has been prevented from carrying out each and every
duty
pertaining to the member's employment as a result of sickness or
injury
for a period of 180 days and the annual benefit shall not exceed an
amount
equal to 662/3% of the member's annual rate of compensation on the
date
such disability commenced and shall be payable in equal monthly
install-
ments. In the event that a member's compensation is not fixed at
an
annual rate but on an hourly, weekly, biweekly, monthly or any
other
basis than annual, the board shall prescribe by rule and regulation
a for-
mula for establishing a reasonable rate of annual compensation to
be used
in determining the amount of the death or long-term disability
benefit
for such member. Such plan shall provide that:
(A) For deaths occurring prior to January 1, 1987, the right
to receive
such death benefit shall cease upon the member's attainment of age
70
or date of retirement whichever first occurs. The right to receive
such
long-term disability benefit shall cease (i) for a member who
becomes
eligible for such benefit before attaining age 60, upon the date
that such
member attains age 65 or the date of such member's retirement,
which-
ever first occurs, (ii) for a member who becomes eligible for such
benefit
at or after attaining age 60, the date that such member has
received such
benefit for a period of five years, upon the date that such member
attains
age 70, or upon the date of such member's retirement, whichever
first
occurs, (iii) for all disabilities incurred on or after January 1,
1987, for a
member who becomes eligible for such benefit at or after attaining
age
70, the date that such member has received such benefit for a
period of
12 months or upon the date of such member's retirement, whichever
first
occurs, and (iv) for all disabilities incurred on or after January
1, 1987,
for a member who becomes eligible for such benefit at or after
attaining
age 75, the date that such member has received such benefit for a
period
of six months or upon the date of such member's retirement,
whichever
first occurs.
(B) Long-term disability benefit payments shall be in lieu of
any ac-
cidental total disability benefit that a member may be eligible to
receive
under subsection (3) of K.S.A. 74-4916 and amendments thereto.
The member must make an initial application for social security
disability benefits and, if denied such benefits, the member must pursue
and exhaust all administrative remedies of the social security
administration which include, but are not limited to, reconsideration and
hearings. Such plan
may provide that any amount which a member receives as a social
security
benefit or a disability benefit or compensation from any source by
reason
of any employment including, but not limited,
to, workers compensation
benefits may be deducted from the amount of
insuredlong-term disability
benefit payments under such plan, except that not more than
50% of such workers compensation benefits shall be deducted
therefrom. During the period in which such member is pursuing such administrative
remedies prior to a final decision of the social security administration,
social se- curity disability benefits may be estimated and may be deducted
from the amount of long-term disability benefit payments under such
plan. Such insuredlong-term disability payments shall
accrue from the later of the
181st day of total disability or the first day upon which the
member ceases
to draw compensation from the employer. If the social security
benefit,
workers compensation benefit, other income or wages or other
disability
benefit by reason of employment, or any part thereof, is paid in a
lump-
sum, the amount of the reduction shall be calculated on a monthly
basis
over the period of time for which the lump-sum is given. In no case
shall
a member who is entitled to receive insuredlong-term disability benefits
receive less than $50 per month. As used in this section, ``workers
com-
pensation benefits'' means the total award of disability benefit
payments
under the workers compensation act notwithstanding any payment of
at-
torney fees from such benefits as provided in the workers
compensation
act.
(C) The plan may include other provisions relating to
qualifications
for benefits; schedules and graduation of benefits; limitations of
eligibility
for benefits by reason of termination of employment or
membership;
conversion privileges; limitations of eligibility for benefits by
reason of
leaves of absence, military service or other interruptions in
service; lim-
itations on the condition of long-term disability benefit payment
by reason
of improved health; requirements for medical examinations or
reports; or
any other reasonable provisions as established by rule and
regulation of
uniform application adopted by the board.
(D) On and after April 30, 1981, the board may provide under
the
plan for the continuation of long-term disability benefit payments
to any
former member who forfeits the entitlement to continued service
credit
under the retirement system or continued assistance in the purchase
of
retirement annuities under K.S.A. 74-4925 and amendments thereto
and
to continued long-term disability benefit payments and continued
death
benefit coverage, by reason of the member's withdrawal of
contributions
from the retirement system or the repurchase of retirement
annuities
which were purchased with assistance received under K.S.A. 74-4925
and
amendments thereto. Such long-term disability benefit payments may
be
continued until such individual dies, attains age 65 or is no
longer disa-
bled, whichever occurs first.
(E) Any visually impaired person who is in training at and
employed
by a sheltered workshop for the blind operated by the secretary of
social
and rehabilitation services and who would otherwise be eligible for
the insuredlong-term disability benefit as
described in this section shall not
be eligible to receive such benefit due to visual impairment as
such im-
pairment shall be determined to be a preexisting condition.
(2) (A) In the event that a member becomes eligible for a
long-term
disability benefit under the plan authorized by this section such
member
shall be given participating service credit for the entire period
of such
disability. Such member's final average salary shall be computed in
ac-
cordance with subsection (17) of K.S.A. 74-4902 and amendments
thereto
except that the years of participating service used in such
computation
shall be the years of salaried participating service.
(B) In the event that a member eligible for a long-term
disability
benefit under the plan authorized by this section shall be disabled
for a
period of five years or more immediately preceding retirement,
such
member's final average salary shall be adjusted upon retirement by
the
actuarial salary assumption rates in existence during such period
of dis-
ability. Effective July 1, 1993, such member's final average salary
shall be
adjusted upon retirement by 5% for each year of disability after
July 1,
1993, but before July 1, 1998. Effective July 1, 1998, such
member's final average salary shall be adjusted upon retirement by an amount
equal to the lesser of: (i) The percentage increase in the consumer price
index for all urban consumers as published by the bureau of labor
statistics of the United States department of labor minus 1%; or (ii) four percent
per annum, measured from the month the disability occurs to the
month that is two months prior to the month of retirement, for each year of
disability after July 1, 1998.
(C) In the event that a member eligible for a long-term
disability
benefit under the plan authorized by this section shall be disabled
for a
period of five years or more immediately preceding death, such
member's
current annual rate shall be adjusted by the actuarial salary
assumption
rates in existence during such period of disability. Effective July
1, 1993,
such member's current annual rate shall be adjusted upon death by
5%
for each year of disability after July 1, 1993, but before July
1, 1998. Effective July 1, 1998, such member's current annual rate shall
be adjusted upon death by an amount equal to the lesser of: (i) The
percentage increase in the consumer price index for all urban consumers published by
the bureau of labor statistics of the United States department of
labor minus 1%; or (ii) four percent per annum, measured from the month the
disa- bility occurs to the month that is two months prior to the month
of death, for each year of disability after July 1, 1998.
(3) (A) To carry out the legislative intent to provide,
within the funds
made available therefor, the broadest possible coverage for members
who
are in active employment or involuntarily absent from such active
em-
ployment, the plan of death and long-term disability benefits shall
be
subject to adjustment from time to time by the board within the
limita-
tions of this section. The plan may include terms and provisions
which
are consistent with the terms and provisions of group life and
long-term
disability policies usually issued to those employers who employ a
large
number of employees. The board shall have the authority to
establish and
adjust from time to time the procedures for financing and
administering
the plan of death and long-term disability benefits authorized by
this
section. Either the insured death benefit or the insured disability
benefit
or both such benefits may be financed directly by the system or by
one
or more insurance companies authorized and licensed to transact
group
life and group accident and health insurance in this state.
(B) The board may contract with one or more insurance
companies,
which are authorized and licensed to transact group life and group
acci-
dent and health insurance in Kansas, to underwrite or to administer
or
to both underwrite and administer either the insured death benefit
or the insuredlong-term disability benefit or
both such benefits. Each such con-
tract with an insurance company under this subsection shall be
entered
into on the basis of competitive bids solicited and administered by
the
board. Such competitive bids shall be based on specifications
prepared
by the board.
(i) In the event the board purchases one or more policies of
group
insurance from such company or companies to provide either the
insured
death benefit or the insuredlong-term
disability benefit or both such
benefits, the board shall have the authority to subsequently cancel
one
or more of such policies and, notwithstanding any other provision
of law,
to release each company which issued any such canceled policy from
any
liability for future benefits under any such policy and to have the
reserves
established by such company under any such canceled policy returned
to
the system for deposit in the group insurance reserve of the
fund.
(ii) In addition, the board shall have the authority to cancel
any policy
or policies of group life and long-term disability insurance in
existence
on the effective date of this act and, notwithstanding any other
provision
of law, to release each company which issued any such canceled
policy
from any liability for future benefits under any such policy and to
have
the reserves established by such company under any such canceled
policy
returned to the system for deposit in the group insurance reserve
of the
fund. Notwithstanding any other provision of law, no premium tax
shall
be due or payable by any such company or companies on any such
policy
or policies purchased by the board nor shall any brokerage fees or
com-
missions be paid thereon.
(4) (A) There is hereby created in the state treasury the
group in-
surance reserve fund. Investment income of the fund shall be added
or
credited to the fund as provided by law. The cost of the plan of
death
and long-term disability benefits shall be paid from the group
insurance
reserve fund, which shall be administered by the board. Each
participat-
ing employer shall appropriate and pay to the system in such manner
as
the board shall prescribe in addition to the employee and employer
re-
tirement contributions an amount equal to .6% of the amount of
com-
pensation on which the members' contributions to the Kansas public
em-
ployees retirement system are based for deposit in the group
insurance
reserve fund.
(B) The director of the budget and the governor shall include
in the
budget and in the budget request for appropriations for personal
services
a sum to pay the state's contribution to the group insurance
reserve fund
as provided by this section and shall present the same to the
legislature
for allowances and appropriation.
(C) The provisions of subsection (4) of K.S.A. 74-4920 and
amend-
ments thereto shall apply for the purpose of providing the funds to
make
the contributions to be deposited to the group insurance reserve
fund.
(D) Any dividend or retrospective rate credit allowed by an
insurance
company or companies shall be credited to the group insurance
reserve
fund and the board may take such amounts into consideration in
deter-
mining the amounts of the benefits under the plan authorized by
this
section.
(5) The death benefit provided under the plan of death and
long-
term disability benefits authorized by this section shall be known
and
referred to as insured death benefit. The long-term disability
benefit pro-
vided under the plan of death and long-term disability benefits
authorized
by this section shall be known and referred to as
insuredlong-term dis-
ability benefit.
(6) The board is hereby authorized to establish an optional
death
benefit plan. Except as provided in subsection (7), such optional
death
benefit plan shall be made available to all employees who are
covered or
may hereafter become covered by the plan of death and long-term
disa-
bility benefits authorized by this section. The cost of the
optional death
benefit plan shall be paid by the applicant either by means of a
system
of payroll deductions or direct payment to the board. The board
shall
have the authority and discretion to establish such terms,
conditions, spec-
ifications and coverages as it may deem to be in the best interest
of the
state of Kansas and its employees which should include term death
ben-
efits for the person's period of active state employment regardless
of age,
but in no case, on and after January 1, 1989, shall the maximum
allowable
coverage be less than $200,000. The cost of the optional death
benefit
plan shall not be established on such a basis as to unreasonably
discrim-
inate against any particular age group. The board shall have full
admin-
istrative responsibility, discretion and authority to establish and
continue
such optional death benefit plan and the director of accounts and
reports
of the department of administration shall when requested by the
board
and from funds appropriated or available for such purpose establish
a
system to make periodic deductions from state payrolls to cover the
cost
of the optional death benefit plan coverage under the provisions of
this
subsection (6) and shall remit all deductions together with
appropriate
accounting reports to the system. There is hereby created in the
state
treasury the optional death benefit plan reserve fund. Investment
income
of the fund shall be added or credited to the fund as provided by
law. All
funds received by the board, whether in the form of direct
payments,
payroll deductions or otherwise, shall be accounted for separately
from
all other funds of the retirement system and shall be paid into the
optional
death benefit plan reserve fund, from which the board is authorized
to
make the appropriate payments and to pay the ongoing costs of
admin-
istration of such optional death benefit plan as may be incurred in
carrying
out the provisions of this subsection (6).
(7) Any employer other than the state of Kansas which is
currently a
participating employer of the Kansas public employees retirement
system
or is in the process of affiliating with the Kansas public
employees retire-
ment system may also elect to affiliate for the purposes of
subsection (6).
All such employers shall make application for affiliation with such
system,
to be effective on January 1 next following application. Such
optional
death benefit plan shall not be available for employees of
employers spec-
ified under this subsection until after July 1, 1988.
Sec. 30. K.S.A. 1997 Supp. 74-4936a, as amended by
section 63 of
1998 Senate Bill No. 382, is hereby amended to read as follows:
74-4936a.
Any employee of a participating employer who is a member of the
Kansas
public employees retirement system, who was previously employed in
a
teaching position with a public school system of another state, in
a foreign
teaching service in an overseas dependents' school, in a
recognized
teacher exchange program or in any program where a teacher is
chosen
by the Kansas department of education to teach in a foreign country
and
which service otherwise meets the requirements of an employee as
pre-
scribed in subsection (14) of K.S.A. 74-4902 or subsection (4) of
K.S.A.
74-4932 and amendments thereto may elect to purchase
prior service for
such out-of-state public school or overseas teaching employment.
At the election of the member, the benefit for each such year of
employment
shall be equal to either 1% or 1.75% of the final
average salary of any
such member. For any member who elected to purchase service
credit as provided in this section prior to the effective date of this act
at the 1% rate, such member may elect to purchase such service credit at
an addi- tional amount of .75% of final average salary of such member in
a lump- sum amount as otherwise provided in this subsection. Subject
to the pro-
visions of section 83 and amendments thereto, such member may
pur-
chase such prior service credit by making
application therefor prior to
date of retirement at an additional rate of contribution in
addition to the
employee's rate of contribution as provided in K.S.A. 74-4919 and
amend-
ments thereto, based upon the member's attained age at the time
of
purchase and using actuarial assumptions and tables in use by the
retire-
ment system at the time of such purchase. Such additional rate of
con-
tribution shall commence at the beginning of the quarter following
such
election and shall remain in effect until all quarters of such
service have
been purchased. Subject to the provisions of section 83 and
amendments
thereto, any such member may purchase such prior
service credit as de-
scribed in this section by electing to effect such purchase by
means of a
single lump-sum payment in lieu of employee contributions as
provided
in this section in an amount equal to the then present value of the
benefits
being purchased as determined by the actuary using the member's
at-
tained age, annual compensation at the time of purchase and the
actuarial
assumptions and tables then in use by this system. The lump-sum
pay-
ment shall be made immediately upon being notified of the amount
due.
Sec. 31. K.S.A. 1997 Supp. 74-4937 is hereby amended to
read as
follows: 74-4937. (1) The normal retirement date of a member of
the
system who is in school employment and who is subject to K.S.A.
74-
4940 and amendments thereto shall be the first day of the month
coin-
ciding with or following termination of employment not followed
by em- ployment with any participating employer within 30 days and
the end of
the school fiscal year in which the member attains age 65 or,
commencing
July 1, 1986, age 65 or age 60 with the completion of 35 years of
credited
service or at any age with the completion of 40 years of credited
service,
or commencing July 1, 1993, any alternative normal retirement date
al-
ready prescribed by law or age 62 with the completion of 10 years
of
credited service or the first day of the month coinciding with or
following
the date that the total of the number of years of credited service
and the
number of years of attained age of the member is equal to or more
than
85. Each member upon giving prior notice to the appointing
authority
and the retirement system may retire on the normal retirement date
or
the first day of any month thereafter.
(2) Any member who is in school employment and who is subject
to
K.S.A. 74-4940 and amendments thereto may retire before such
mem-
ber's normal retirement date on the first day of the month
coinciding with
or following termination of employment not followed by
employment with any participating employer within 30 days and the completion
of the
school fiscal year in which such member attained age 55 with the
com-
pletion of 10 years of credited service, upon the filing with the
office of
the retirement system of an application for retirement in such form
and
manner as the board shall prescribe.
(3) No member who begins a year of school employment and who
is
subject to K.S.A. 74-4940 and amendments thereto may retire until
the
first day of the month coinciding with or following the end of the
current
school fiscal year unless good cause is shown and such retirement
is
agreed to by the participating employer and the board.
(4) As used in this section ``school fiscal year'' means the
twelve-
month period beginning July 1 and ending June 30.
Sec. 32. K.S.A. 1997 Supp. 74-4939 is hereby amended to
read as
follows: 74-4939. (1) Except as otherwise provided in this section,
the
provisions of K.S.A. 74-4919 and 74-4920, and amendments thereto,
shall
apply to employee and employer contributions and obligations.
(2) The employer contribution rate for participating employers
who
are eligible employers as specified in subsections (1), (2) and (3)
of K.S.A.
74-4931 and amendments thereto shall be as certified by the board.
Par-
ticipating employers shall certify to the state board of education
before
September 15 of each year the anticipated total compensation to be
paid
during the next fiscal year to employees who are or are to become
mem-
bers. The state board of education shall transmit the information
neces-
sary to the division of the budget and the governor who shall
include in
the budget and budget document each year thereafter provisions for
the
transfer from the state general fund of sufficient sums to satisfy
the par-
ticipating employer's obligation under this act. The director of
accounts
and reports shall make a transfer therefor to the system quarterly,
at the
same time such employee contributions are remitted by such
participating
employers. Such transfer from the general fund of sufficient sums
to
satisfy the participating employer's obligation shall not include
any ad-
justments for individual employee's service in prior periods and
any re- quired payment by a participating employer pursuant to K.S.A.
74-4990 and amendments thereto and section 52 and amendments
thereto. The
employer's obligation for such adjustments shall be paid by the
partici-
pating employer. Transfers required by this subsection shall be
provided
for annually by act of the legislature.
(3) Participating employers who are eligible employers as
specified
in subsection (4) of K.S.A. 74-4931 and amendments thereto shall
pay to
the system employer contributions at a rate of contribution as
certified
by the board.
(4) Upon the effective date of this act, the transfers for the
employer's
obligation pursuant to subsection (2) for the quarter commencing on
Jan-
uary 1, 1987, shall be made on July 1, 1987, together with interest
thereon
at the rate of 6.72% per annum from the date the payment would
have
been made as provided in this section immediately prior to this
amend-
ment until the date paid.
Sec. 33. K.S.A. 1997 Supp. 74-4952, as amended by section
65 of
1998 Senate Bill No. 382, is hereby amended to read as follows:
74-4952.
As used in K.S.A. 74-4951 et seq. and amendments thereto:
(1) ``Accumulated contributions'' means the sum of all
contributions
by a member to the system which shall be credited to the
member's
account with interest allowed thereon after June 30, 1982.
(2) ``Disability'' means the total inability to perform
permanently the
duties of the position of a policeman or fireman.
(3) ``Eligible employer'' means any city, county, township or
other
political subdivision of the state employing one or more employees
as
firemen or policemen.
(4) ``Employee'' means any policeman or fireman employed by a
par-
ticipating employer whose employment for police or fireman purposes
is
not seasonal or temporary and requires at least 1,000 hours of work
per
year.
(5) ``Entry date'' means the date as of which an eligible
employer
joins the system; the first entry date pursuant to this act is
January 1,
1967.
(6) ``Final average salary'' means:
(a) For members who are first hired as an employee, as defined
in
subsection (4), before July 1, 1993, the average highest annual
compen-
sation paid to a member for any three of the last five years of
participating
service immediately preceding retirement or termination of
employment,
or if participating service is less than three years, then the
average annual
compensation paid to the member during the full period of
participating
service, or if a member has less than one calendar year of
participating
service, then the member's final average salary shall be computed
by
multiplying the member's highest monthly salary received in that
year by
12;
(b) for members who are first hired as an employee, as defined
in
subsection (4), on and after July 1, 1993, the average highest
annual salary,
as defined in subsection (34) of K.S.A. 74-4902 and amendments
thereto,
paid to a member for any three of the last five years of
participating
service immediately preceding retirement or termination of
employment,
or if participating service is less than three years, then the
average annual
salary, as defined in subsection (34) of K.S.A. 74-4902 and
amendments
thereto, paid to the member during the full period of participating
service,
or if a member has less than one calendar year of participating
service,
then the member's final average salary shall be computed by
multiplying
the member's highest monthly salary received in that year by
12;
(c) for purposes of subparagraphs (a) and (b) of this
subsection, the
date that such member is first hired as an employee for members
who
are employees of employers that elected to participate in the
system on
or after January 1, 1994, shall be the date that such employee's
employer
elected to participate in the system; and
(d) for any application to purchase or repurchase service
credit for a
certain period of service as provided by law received by the system
after
May 17, 1994, for any member who will have contributions deducted
from
such member's compensation at a percentage rate equal to two or
three
times the employee's rate of contribution or who will have
contributions
deducted from such member's compensation at an additional rate of
con-
tribution, in addition to the employee's rate of contribution as
provided
in K.S.A. 74-4919 and amendments thereto or will begin paying to
the
system a lump-sum amount for such member's purchase or
repurchase,
and such deductions or lump-sum payment commences after the
com-
mencement of the first payroll period in the third quarter, ``final
average
salary'' shall not include any amount of compensation or salary
which is
based on such member's purchase or repurchase. Any application to
pur-
chase or repurchase multiple periods of service shall be treated as
mul-
tiple applications.
(e) Notwithstanding any other provision of this section, for
purposes
of applying limits as provided by the federal internal revenue
code, salary
shall have the meaning as determined pursuant to section 83 and
amend-
ments thereto.
(7) ``Retirement benefit'' means a monthly income or the
actuarial
equivalent thereof paid in such manner as specified by the member
as
provided under the system or as otherwise allowed to be paid at
the
discretion of the board, with benefits accruing from the first day
of the
month coinciding with or following retirement and ending on the
last day
of the month in which death occurs. Upon proper identification
such
surviving spouse may negotiate the warrant issued in the name of
the
retirant.
(8) ``Normal retirement date'' means the date on or after
which a
member may retire with eligibility for retirement benefits for age
and
service as provided in subsections (1) and (3) of K.S.A. 74-4957
and
amendments thereto;
(9) ``Retirement system'' or ``system'' means the Kansas
police and
firemen's retirement system as established by this act and as it
may be
hereafter amended.
(10) ``Service-connected'' means with regard to a death or any
phys-
ical or mental disability, any such death or disability resulting
from ex-
ternal force, violence or disease occasioned by an act of duty as a
police-
man or fireman and, for any member after five years of credited
service, includesthere shall be a rebuttable
presumption, that any death or disa-
bility resulting from a heart disease or disease of the lung or
respiratory
tract or cancer as provided in this subsection, except that in the
event
that the member ceases to be a contributing member
except by reason
of a service-connected disability for a period of six months or
more and
then again becomes a contributing member, the provision relating
to
death or disability resulting from a heart disease, disease of the
lung or
respiratory tract or cancer as provided in this subsection shall
not apply
until such member has again become a contributing member for a
period
of not less than two years or unless clear and precise evidence is
presented
that the heart disease, disease of the lung or respiratory tract or
cancer
as provided in this subsection was in fact occasioned by an act of
duty as
a policeman or fireman. If the retirement system receives
evidence to the contrary of such presumption, the burden of proof shall be on
the member or other party to present evidence that such death or disability
was serv- ice-connected. The provisions of this section relating to
the presumption
that the death or disability resulting from cancer is
service-connected shall
only apply if the condition that caused the death or disability is
a type of
cancer which may, in general, result from exposure to heat,
radiation or
a known carcinogen.
(11) Prior to July 1, 1998, ``fireman'' or ``firemen''
means an employee
assigned to the fire department and engaged in the fighting and
extin-
guishment of fires and the protection of life and property
therefrom or
in support thereof and who is specifically designated, appointed,
com-
missioned or styled as such by the governing body or city manager
of the
participating employer and certified to the retirement system as
such. On and after July 1, 1998, ``fireman'' or ``firemen'' means an
employee as- signed to the fire department whose principal duties are
engagement in the fighting and extinguishment of fires and the protection of
life and property therefrom and who is specifically designated,
appointed, com- missioned or styled as such by the governing body or city
manager of the participating employer and certified to the retirement system as
such.
(12) Prior to July 1, 1998, ``police,'' ``policeman''
or ``policemen''
means an employee assigned to the police department and engaged
in
the enforcement of law and maintenance of order within the state
and its
political subdivisions, including sheriffs and sheriffs' deputies,
or in sup-
port thereof and who is specifically designated, appointed,
commissioned
or styled as such by the governing body or city manager of the
partici-
pating employer and certified to the retirement system as such.
On and after July 1, 1998, ``police,'' ``policeman'' or ``policemen''
means an em- ployee assigned to the police department whose principal duties
are en- gagement in the enforcement of law and maintenance of order
within the state and its political subdivisions, including sheriffs and
sheriffs' deputies; who has successfully completed the required course of
instruction for law enforcement officers approved by the Kansas law enforcement
training center and is certified pursuant to the provisions of K.S.A.
74-5607a and amendments thereto; and who is specifically designated,
appointed, com- missioned or styled as such by the governing body or city
manager of the participating employer and certified to the retirement system as
such. Notwithstanding any other provisions of this subsection,
``police,'' ``po- liceman'' or ``policemen'' shall include a city or county
correctional officer who is specifically designated, appointed, commissioned or
styled as such by the governing body or city manager of the participating
employer and certified to the retirement system as such commencing on July 1,
1998, and ending on June 30, 1999.
(13) Except as otherwise defined in this act, words and
phrases used
in K.S.A. 74-4951 et seq. and amendments thereto, shall have the
same
meanings ascribed to them as are defined in K.S.A. 74-4902 and
amend-
ments thereto.
Sec. 34. K.S.A. 74-4955a is hereby amended to read as
follows: 74-
4955a. (1) Except as provided in subsection (4), each member of
the
system who was appointed or employed prior to July 1, 1989, may
elect
to be covered by the provisions of K.S.A. 74-4957a, 74-4958a,
74-4960a,
74-4963a and 74-4964a, and amendments thereto, on the first day of
the
first payroll period of such member coinciding with or following
the re-
ceipt of such election in the office of the retirement system, only
by filing
with the board of trustees of the system prior to January 1, 1990,
a written
election to be covered by such provisions. Failure to file such
written
election shall be presumed to be an election not to be covered by
such
provisions. Such election, whether to become a member or not to
become
a member, shall be irrevocable.
(2) Each person appointed or employed on or after July 1,
1989, shall
be covered by the provisions of K.S.A. 74-4957a, 74-4958a,
74-4960a, 74-
4963a and 74-4964a, and amendments thereto.
(3) The provisions of this section shall be effective on and
after July
1, 1989.
(4) Each member of the system who was appointed or employed
prior
to July 1, 1989, and who did not elect to be covered by the
provisions
specified in subsection (1) prior to January 1, 1990, may elect to
be cov-
ered by such provisions by filing a written election as provided in
sub-
section (1) during the period commencing July 1, 1990, and ending
Sep-
tember 30, 1990.
(5) Except as provided in this subsection, each member of
the system who was appointed or employed prior to July 1, 1989, and who did
not elect to be covered by the provisions specified in subsection
(1) as provided in this section, may elect to be covered by such provisions by
filing a written election as provided in subsection (1). The provisions
of this sub- section shall take effect on and after the date the system
receives a private letter ruling from the internal revenue service that the
provisions of this subsection do not contravene federal law. The period of such
election as provided by this subsection shall commence on the date of
receipt by the system of such private letter ruling, and shall end 90 days
thereafter. Any member who elects as provided by this subsection shall pay the
cost of such election by means of a single lump-sum payment in an amount
equal to the then present value of the benefits being purchased as
determined by the actuary using the member's attained age, annual
compensation at the time of the purchase and the actuarial assumptions and
tables then in use by the system.
Sec. 35. K.S.A. 1997 Supp. 74-4956, as amended by section
68 of
1998 Senate Bill No. 382, is hereby amended to read as follows:
74-4956.
(1) Prior service shall be credited as follows:
(a) Each member shall receive:
(i) Full credit for all employment, whether or not continuous,
as ei-
ther a policeman or fireman prior to the entry date with such
member's
employer who is such member's employer on the entry date;
(ii) full credit for all employment, whether or not
continuous, as ei-
ther a police or fireman prior to the entry date of such police or
firemen's
employer, with a participating employer, if such member has at
least 20
years of credited service; and
(iii) for all continuous employment with the same employer
other
than either as policeman or fireman, immediately preceding such
service
as a policeman or fireman, 12 monthsone
month of credit for each 24 two months of service. Any member or retirant who has been
credited
with prior service as provided in this section may apply to the
board on
such forms as the board prescribes for prior service credit with a
partic-
ipating employer under the Kansas police and firemen's retirement
sys-
tem other than such member's entry date employer. Each member
shall
receive full credit for all employment as either a policeman or
fireman
with such other participating employers and shall receive
12 monthsone month of credit for each 24two
months of continuous service with other
participating employers for continuous employment preceding service
as
a policeman or fireman. Upon receipt of written verification of
such em-
ployment from such other participating employer, the board may
grant
such additional prior service credit. With respect to a retirant,
the board
shall adjust the amount of the retirement benefit accordingly
commenc-
ing with the next monthly benefit payment due following receipt of
writ-
ten verification. In the case of any person other than a retirant
receiving
a retirement benefit, such person may make application for an
adjustment
in the benefit amount in the same manner as a member or retirant,
and
in such case the adjustment in the benefit amount shall be
determined
by the board upon the advice of the actuary, and shall commence
with
the next monthly benefit payment due following receipt of written
veri-
fication, except that no additional prior service credit shall be
granted for
any service with another participating employer for which benefits
are
being received or will be received. A retirant or any other
person receiv- ing a retirement benefit shall not be entitled to any
retroactive adjustment in the amount of retirement benefit as a result of the board
granting such additional prior service credit.
If a member was employed as a fireman, other than as a
volunteer
fireman, by a township which is annexed by a participating employer
the
member's retirement benefits and death and disability benefits
shall be
computed on the basis of credited service. Continuous service as a
fire-
man with a township prior to annexation by a member, who became
a
member immediately following the annexation, shall be considered
cred-
ited service.
No such service shall be considered credited service for the
purpose
of computing years of service if such fireman is receiving or will
become
eligible to receive benefits as a result of such service with the
township.
(b) Leaves of absence and military service shall not be
counted as
breaks in continuous employment; however, military service which is
pre-
ceded within 30 days and followed by employment with a
participating
employer shall be credited, except that after July 1, 1974, not
more than
five years credit for military service shall be granted hereunder
to the
extent required by the provisions of USERRA, but leaves of absence
shall
not be credited.
(2) Participating service shall be credited as follows: (a) A
member
shall receive credit for participating service with a participating
employer
in accordance with the rules and regulations established by the
board. No
more than one calendar quarter of participating service shall be
credited
for employment within any one calendar quarter.
(b) Leaves of absence shall not be counted as a termination of
em-
ployment provided the member leaves such member's accumulated
con-
tributions on deposit with the system and returns to employment
with
the employer granting such leave; however, the period of leave of
absence
shall not be credited service.
(c) To the extent required under the provisions of USERRA,
military
service shall not count as a break in continuous employment.
(d) Termination of employment with a participating employer
fol-
lowed by employment with the same or another participating
employer
within two years shall not constitute a termination of membership
pro-
vided the member leaves such member's accumulated contributions
on
deposit with the system; however, the period while not employed
shall
not be credited.
(3) In determining the number of years of credited service for
cal-
culation of retirement benefits a fractional year of six months or
more of
credited service shall be considered as one year and a fractional
year of
less than six months of credited service shall be disregarded.
Sec. 36. K.S.A. 1997 Supp. 74-4957 is hereby amended to
read as
follows: 74-4957. (1) The normal retirement date for a member of
the
system who is appointed or employed prior to July 1, 1989, and who
does
not make an election pursuant to K.S.A. 74-4955a and
amendments thereto shall be the first day of the month coinciding with
or following termination of employment not followed by employment with any
partic- ipating employer within 30 days and the attainment of age 55
and the
completion of 20 years of credited service. Any member may retire
on
such member's normal retirement date or on the first day of any
month
thereafter.
(2) Early retirement. Any member who is appointed or
employed
prior to July 1, 1989, and who does not make an election pursuant
to
K.S.A. 74-4955a and amendments thereto may retire before such
mem-
ber's normal retirement date on the first day of any month
coinciding
with or following termination of employment not followed by
employment with any participating employer within 30 days and the
attainment of
age 50 and the completion of 20 years of credited service.
(3) Notwithstanding the provisions of subsections (1) and (2)
of this
section and K.S.A. 74-4955a, 74-4957a, 74-4958a, 74-4960a, 74-4963a
and
74-4964a and amendments thereto, the normal retirement date for
any
member who was, up to the entry date of such member's employer,
cov-
ered by a pension system under the provisions of K.S.A. 13-14a01 to
13-
14a14, inclusive, or 14-10a01 to 14-10a15, inclusive, and
amendments
thereto, shall be the first day of the month coinciding with or
following
the attainment of age 50 and the completion of 25 years of credited
serv-
ice.
(4) In no event shall a member be eligible to retire until
such member
has been a contributing member of the system for 12 months of
partici-
pating service, and shall have given such member's employer prior
notice
of retirement.
(5) If a retirant who retired on or after July 1, 1994, is
employed,
elected or appointed in or to any position or office for which
compensa-
tion for service is paid, during calendar year 1994, in an
amount equal to $11,160 or more; or during calendar year 1995 and all
calendar years thereafter, in an amount equal to
$11,280$15,000 or more in any one
such calendar year, by the same state agency or the same police or
fire
department of any county, city, township or special district or the
same
sheriff's office of a county during the final two years of such
retirant's
participation, such retirant shall not receive any retirement
benefit for
any month for which such retirant serves in such position or
office. The participating employer shall report to the system within 30 days
of when the compensation paid to the retirant is equal to or exceeds any
limitation provided by this section. Any retirant employed by a
participating em- ployer in the Kansas police and firemen's retirement system
shall not make contributions nor receive additional credit under such system
for such service except as provided by this section. Upon request of
the executive
secretary of the system, the secretary of revenue shall provide
such in-
formation as may be needed by the executive secretary to carry out
the
provisions of this act.
Sec. 37. K.S.A. 1997 Supp. 74-4957a is hereby amended to
read as
follows: 74-4957a. (1) The normal retirement date for a member of
the
system who is appointed or employed on or after July 1, 1989, or
who
makes an election pursuant to K.S.A. 74-4955a and amendments
thereto
to be covered by the provisions of this act shall be the first day
of the
month coinciding with or following termination of employment not
fol- lowed by employment with any participating employer within 30
days and the attainment of age 55 and the completion of 20 years
of credited
service, age 50 and the completion of 25 years of credited service
or age
60 with the completion of 15 years of credited service. Any such
member
may retire on such member's normal retirement date or on the first
day
of any month thereafter.
(2) Any member may retire before such member's normal
retirement
date on the first day of any month coinciding with or following
termination of employment not followed by employment with any participating
em- ployer within 30 days and the attainment of age 50 and the
completion
of 20 years of credited service.
(3) In no event shall a member be eligible to retire until
such member
has been a contributing member of the system for 12 months of
partici-
pating service, and shall have given such member's employer prior
notice
of retirement.
(4) If a retirant who retired on or after July 1, 1996, is
employed,
elected or appointed in or to any position or office for which
compensa-
tion for service is paid, during calendar year 1995 and all
calendar years thereafter, in an amount equal to
$11,280$15,000 or more in any one
such calendar year, by the same state agency or the same police or
fire
department of any county, city, township or special district or the
same
sheriff's office of a county during the final two years of such
retirant's
participation, such retirant shall not receive any retirement
benefit for
any month for which such retirant serves in such position or
office. The participating employer shall report to the system within 30 days
of when the compensation paid to the retirant is equal to or exceeds any
limitation provided by this section. Any retirant employed by a
participating em-
ployer in the Kansas police and firemen's retirement system shall
not
make contributions nor receive additional credit under such system
for
such service except as provided by this section. Upon request of
the ex-
ecutive secretary of the system, the secretary of revenue shall
provide
such information as may be needed by the executive secretary to
carry
out the provisions of this act.
(5) The provisions of this section shall be effective on and
after July
1, 1989, and shall apply only to members who were appointed or
em-
ployed prior to July 1, 1989, and who made an election pursuant to
K.S.A.
74-4955a and amendments thereto; and persons appointed or
employed
on or after July 1, 1989.
Sec. 38. K.S.A. 1997 Supp. 74-4960, as amended by section
72 of
1998 Senate Bill No. 382, is hereby amended to read as follows:
74-4960.
(1) If any active contributing member becomes totally and
permanently
disabled due to service-connected causes as defined in subsection
(10) of
K.S.A. 74-4952 and amendments thereto, such member shall be
retired
and the following benefits shall become payable and shall continue
until
the member's death or until the member recovers from the disability
if:
A report of the event in a form acceptable to the board is filed in
the
office of the executive secretary of the board within 220 days
after the
date of the event or act of duty causing such disability; and an
application
for such benefit, in such form and manner as the board prescribes,
is filed
by the member or the member's authorized representative in the
office
of the executive secretary of the board within two years of the
date of
disability:
(a) On and after July 1, 1993, the member shall receive a
retirement
benefit equal to 50% of the member's final average salary or, if
the mem-
ber has no dependents, as defined in subsection (1)(b), the
retirement
benefit the member would have been entitled to as provided under
K.S.A.
74-4958 and amendments thereto had the member retired, whichever
is
greater. Such benefit shall accrue from the day upon which the
member
ceases to draw compensation.
(b) Each of the member's children under the age of 18 years or
each
of the member's children under the age of 23 years who is a
full-time
student as provided in K.S.A. 74-49,117 and amendments thereto
shall
receive an annual benefit equal to 10% of the member's final
average
salary. Such benefit shall accrue from the day upon which the
member
ceases to draw compensation and shall end on the last day of the
month
in which each such child or children shall attain the age of 18
years or
die, whichever occurs earlier or in which such children attain the
age of
23 years, if such child is a full-time student as provided in
K.S.A. 74-
49,117 and amendments thereto. Commencing on the effective date
of
this act, any child who was receiving benefits pursuant to this
section and
who had such benefits terminated by reason of such child's
marriage,
shall be entitled to once again receive benefits pursuant to this
section
subject to the limitations contained in this section, except that
such child
shall not be entitled to recover any benefits not received after
the ter-
mination of benefits by reason of such child's marriage but before
the
effective date of this act.
(c) In no case shall the total of the benefits payable under
paragraphs
(a) and (b) of this subsection (1) be in excess of 75% of the
member's
final average salary.
(d) In the event a member who is retired under subsection (1)
dies
within two years after the date of such retirement and no benefits
are
payable under subsection (3) of K.S.A. 74-4958 and amendments
thereto,
then benefits may be payable under subsection (1) of K.S.A. 74-4959
and
amendments thereto.
(e) In the event a member who is retired under subsection (1)
dies
more than two years after the date of such retirement, and the
proximate
cause of such death is the service-connected cause from which the
disa-
bility resulted and no benefits are payable under subsection (3) of
K.S.A.
74-4958 and amendments thereto, then benefits may be payable
under
subsection (1) of K.S.A. 74-4959 and amendments thereto. The
provisions
of this paragraph (e) of this subsection (1) shall apply in all
cases of such
members who die after June 30, 1978.
(f) In the event a member who is retired under subsection (1)
dies
after the date of such retirement, and no benefits are payable
under
paragraphs (d) and (e) of subsection (1), nor under subsection (3)
of
K.S.A. 74-4958 and amendments thereto, the following benefits shall
be
payable:
(i) To the member's spouse, if lawfully wedded to the member
at the
time of the member's death, a lump-sum benefit equal to 50% of
the
member's final average salary at the time of the member's
retirement.
(ii) To the member's spouse, if lawfully wedded to the member
at
the time of the member's death, an annual benefit equal to 50% of
the
member's retirement benefit payable in monthly installments, to
accrue
from the first day of the month following the member's date of
death and
ending on the last day of the month in which the spouse dies.
Com-
mencing on the effective date of this act, any surviving spouse,
who was
receiving benefits pursuant to this section and who had such
benefits
terminated by reason of such spouse's remarriage, shall be entitled
to
once again receive benefits pursuant to this section, except that
such
surviving spouse shall not be entitled to recover any benefits not
received
after the termination of benefits by reason of such surviving
spouse's
remarriage but before the effective date of this act. If there is
no surviving
spouse, or if after the death of the spouse there remain one or
more
children under the age of 18 years or one or more children under
the age
of 23 years who is a full-time student as provided in K.S.A.
74-49,117 and
amendments thereto, the annual spouse's benefit shall be payable,
subject
to the provisions of section 83 and amendments thereto, in equal
shares
to such children and each child's share shall end on the last day
of the
month in which such child attains the age of 18 years or dies,
whichever
occurs earlier or in which such child attains the age of 23 years,
if such
child is a full-time student as provided in K.S.A. 74-49,117 and
amend-
ments thereto. Commencing on the effective date of this act, any
child
who was receiving benefits pursuant to this section and who had
such
benefits terminated by reason of such child's marriage, shall be
entitled
to once again receive benefits pursuant to this section subject to
the lim-
itations contained in this section, except that such child shall
not be en-
titled to recover any benefits not received after the termination
of benefits
by reason of such child's marriage but before the effective date of
this
act.
The provisions of paragraph (f) of subsection (1) shall apply in
all cases
of such members who die after December 1, 1984.
(2) (a) If any active contributing member, prior to such
member's
normal retirement, becomes totally and permanently disabled for a
period
of 180 days from causes not service-connected, and not as the
result of a
willfully negligent or intentional act of the member, such member
shall
be retired and the following benefit shall become payable and shall
con-
tinue until the member's death or until the member recovers from
such
disability, whichever occurs first, if a report of the disability
in a form
acceptable to the board is filed in the office of the executive
secretary of
the board within 220 days after the date of the commencement of
such
disability and if an application for such benefit in such form and
manner
as the board shall prescribe is filed in the office of the
executive secretary
of the board within two years of the date of disability:
A retirement benefit equal to 2.5% of the member's final average
salary
multiplied by the number of years of credited service or the
retirement
benefit the member would have been entitled to as provided under
K.S.A.
74-4958 and amendments thereto had the member retired, whichever
is
greater, multiplied by the number of years of credited service
except that
such retirement benefit shall be at least equal to 25% of the
member's
final average salary but shall not exceed the amount of the
retirement
benefit provided in paragraph (a) of subsection (1). Such benefit
shall not
become payable until satisfactory evidence shall be presented to
the board
that the member is and has been totally and permanently disabled
for a
period of 180 days, but benefits shall accrue from the day upon
which
the member ceases to draw compensation.
(b) In the event a member who is retired under subsection (2)
dies
after the date of such retirement, and no benefits are payable
under
subsection (3) of K.S.A. 74-4958 and amendments thereto, the
following
benefits shall be payable:
(i) To the member's spouse, if lawfully wedded to the member
at the
time of the member's death, a lump-sum benefit equal to 50% of
the
member's final average salary at the time of the member's
retirement.
(ii) To the member's spouse, if lawfully wedded to the member
at
the time of the member's death, an annual benefit equal to 50% of
the
member's retirement benefit payable in monthly installments, to
accrue
from the first day of the month following the member's date of
death and
ending on the last day of the month in which the spouse dies.
Com-
mencing on the effective date of this act, any surviving spouse,
who was
receiving benefits pursuant to this section and who had such
benefits
terminated by reason of such spouse's remarriage, shall be entitled
to
once again receive benefits pursuant to this section, except that
such
surviving spouse shall not be entitled to recover any benefits not
received
after the termination of benefits by reason of such surviving
spouse's
remarriage but before the effective date of this act. If there is
no surviving
spouse, or if after the death of the spouse there remain one or
more
children under the age of 18 years or one or more children under
the age
of 23 years who are full-time students as provided in K.S.A.
74-49,117
and amendments thereto, the annual spouse's benefit shall be
payable,
subject to the provisions of section 83 and amendments thereto, in
equal
shares to such children and each child's share shall end on the
last day of
the month in which such child attains the age of 18 years or dies,
which-
ever occurs earlier or in which such child attains the age of 23
years, if
such child is a full-time student as provided in K.S.A. 74-49,117
and
amendments thereto. Commencing on the effective date of this act,
any
child who was receiving benefits pursuant to this section and who
had
such benefits terminated by reason of such child's marriage, shall
be en-
titled to once again receive benefits pursuant to this section
subject to
the limitations contained in this section, except that such child
shall not
be entitled to recover any benefits not received after the
termination of
benefits by reason of such child's marriage but before the
effective date
of this act.
The provisions of paragraph (b) of subsection (2) shall apply in
all cases
of such members who die after July 1, 1989.
(3) Any member who was employed for compensation by an em-
ployer other than the member's participating employer and whose
disa-
bility was incurred in the course of such other employment shall
not be
eligible for any of the benefits provided in subsection (2).
(4) If a member becomes totally and permanently disabled and
no
benefits are payable under subsection (1) or (2), the sum of the
member's
accumulated contributions shall be paid to the member.
(5) Any member receiving benefits under this section shall
submit to
medical examination, not oftenermore
frequent than annually, by one or
more physicians or any other practitioners of the healing arts
holding a
valid license issued by Kansas state board of healing arts, as the
board of
trustees may direct. If upon such medical examination, the
examiner's
report to the board states that the retirant is physically
able and capable
of resuming employment with the same or a different
participating em-
ployer from whose employment such member retired,
the disability ben-
efits shall terminate. A retirant who has been receiving benefits
under
the provisions of this section and who returns to employment, as
defined in subsection (4) of K.S.A. 74-4952 and amendments thereto,
of a partic-
ipating employer shall immediately commence accruing service
credit
which shall be added to that which has been accrued by virtue of
previous
service.
(6) Any retirant who has been receiving benefits under the
provisions
of this section for a period of five years shall be deemed finally
retired
and shall not be subject to further medical examinations, except
that if
the board of trustees shall have reasonable grounds to question
whether
the retirant remains totally and permanently disabled, a further
medical
examination or examinations may be required.
(7) Refusal or neglect to submit to examination as provided in
sub-
section (5) shall be sufficient cause for suspending or
discontinuing ben-
efit payments under this section and if such refusal or neglect
shall con-
tinue for a period of one year, the member's rights in and to all
benefits
under this system may be revoked by the board.
(8) Any retirement benefits payable under the provisions of
this sec-
tion shall be in lieu of normal retirement benefits as provided in
subsec-
tions (1) and (2) of K.S.A. 74-4958 and amendments thereto.
(9) Each member shall report to such member's participating
em-
ployer any event or act of duty causing disability within 200 days
after
such event or act of duty. The member's participating employer
shall file
in the office of the executive secretary of the board, in a form
acceptable
to the board, a report of the event or act of duty causing
disability within
220 days after the event or act of duty.
(10) In any case of any event occurring prior to July 1, 1979,
and after June 30, 1998, for which a report of the event was made by
the partici-
pating employer to the director of workers' compensation in
accordance
with K.S.A. 44-557 and amendments thereto, such report to the
director
of workers' compensation shall satisfy the requirement under
subsection
(1) of this section to file a report of such event, in a form
acceptable to
the board within 220 days. No such report to the director of
workers'
compensation shall be deemed to satisfy such requirement with
respect
to events occurring on or after July 1, 1979, and prior to July
1, 1998.
(11) All payments due under this section to a minor shall be
made to
a legally appointed conservator of such minor.
(12) The provisions of this section shall apply only to
members who
were appointed or employed prior to July 1, 1989, and who did not
make
an election pursuant to K.S.A. 74-4955a and amendments thereto.
(13) Any retirant who has been receiving benefits under the
provi- sions of this section and who returns to employment with the
same or different participating employer in the system shall be deemed
no longer retired.
Sec. 39. K.S.A. 1997 Supp. 74-4960a, as amended by
section 73 of
1998 Senate Bill No. 382, is hereby amended to read as follows:
74-4960a.
(1) If any active contributing member who is appointed or employed
on
or after July 1, 1989, or who makes an election pursuant to K.S.A.
74-
4955a and amendments thereto to be covered by the provisions of
this
act becomes disabled as defined in subsection (2), such member
shall
receive a monthly benefit equal to 50% of the member's final
average
salary at the time such member was disabled payable in monthly
install-
ments, accruing from the first day upon which the member ceases
to
draw compensation, if a report of the disability in such form and
manner
as the board shall prescribe is filed in the office of the
executive secretary
of the board within 220 days after the date of the commencement of
such
disability and if an application for such benefit in such form and
manner
as the board shall prescribe is filed in the office of the
executive secretary
of the board within two years of the date of the commencement of
such
disability.
(2) For the purposes of this section, ``disabled'' means total
inability
to perform permanently the duties of the position of policeman or
fire-
man.
(3) In the event a member who is disabled and entitled to such
ben-
efits as provided in subsection (1) dies after the date of such
disability,
and no benefits are payable under subsection (3) of K.S.A. 74-4958
and
amendments thereto, the following benefits shall be payable:
(i) To the member's spouse, if lawfully wedded to the member
at the
time of the member's death, a lump-sum benefit equal to 50% of
the
member's final average salary at the time such member was
disabled.
(ii) To the member's spouse, if lawfully wedded to the member
at
the time of the member's death, an annual benefit equal to 50% of
the
member's benefit payable in monthly installments, to accrue from
the
first day of the month following the member's date of death and
ending
on the last day of the month in which the spouse dies. Commencing
on
the effective date of this act, any surviving spouse, who was
receiving
benefits pursuant to this section and who had such benefits
terminated
by reason of such spouse's remarriage, shall be entitled to once
again
receive benefits pursuant to this section, except that such
surviving spouse
shall not be entitled to recover any benefits not received after
the ter-
mination of benefits by reason of such surviving spouse's
remarriage but
before the effective date of this act. If there is no surviving
spouse, or if
after the death of the spouse there remain one or more children
under
the age of 18 years or one or more children under the age of 23
years
who is a full-time student as provided in K.S.A. 74-49,117 and
amend-
ments thereto, the annual spouse's benefit shall be payable,
subject to
the provisions of section 83 and amendments thereto, in equal
shares to
such children and each child's share shall end on the last day of
the month
in which such child attains the age of 18 years or dies, whichever
occurs
earlier or in which such child attains the age of 23 years, if such
child is
a full-time student as provided in K.S.A. 74-49,117 and
amendments
thereto. Commencing on the effective date of this act, any child
who was
receiving benefits pursuant to this section and who had such
benefits
terminated by reason of such child's marriage, shall be entitled to
once
again receive benefits pursuant to this section subject to the
limitations
contained in this section, except that such child shall not be
entitled to
recover any benefits not received after the termination of benefits
by
reason of such child's marriage but before the effective date of
this act.
(4) Any member who was employed for compensation by an em-
ployer other than the member's participating employer and whose
disa-
bility was incurred in the course of such other employment shall
not be
eligible for any of the benefits provided in subsection (1) or
(3).
(5) If a member becomes totally and permanently disabled and
no
benefits are payable under subsection (1), the sum of the member's
ac-
cumulated contributions shall be paid to the member.
(6) Any member receiving benefits under this section shall
submit to
medical examination, not oftenermore
frequent than annually, by one or
more physicians or any other practitioners of the healing arts
holding a
valid license issued by Kansas state board of healing arts, as the
board of
trustees may direct. If upon such medical examination, the
examiner's
report to the board states that the member is physically
able and capable
of resuming employment with the same or a different
participating em-
ployer from whose employment such member was employed prior
to such member's disability, the disability benefits shall
terminate. A member
who has been receiving benefits under the provisions of this
section and
who returns to employment, as defined in subsection (4) of
K.S.A. 74- 4952 and amendments thereto, of a participating employer
shall imme-
diately commence accruing service credit which shall be added to
that
which has been accrued by virtue of previous service.
(7) Any member who has been receiving benefits under the
provi-
sions of this section for a period of five years shall be deemed
permanent
and shall not be subject to further medical examinations, except
that if
the board of trustees shall have reasonable grounds to question
whether
the member remains totally and permanently disabled, a further
medical
examination or examinations may be required.
(8) Refusal or neglect to submit to examination as provided in
sub-
section (6) shall be sufficient cause for suspending or
discontinuing ben-
efit payments under this section and if such refusal or neglect
shall con-
tinue for a period of one year, the member's rights in and to all
benefits
under this system may be revoked by the board.
(9) In the event that a member becomes disabled and is
eligible for
benefits provided in this section, such member shall be given
participating
service credit for the entire period of such disability.
(10) Any member who is receiving benefits pursuant to this
section
shall file annually a statement of earnings for the previous year
in such
form and manner as the board shall prescribe. Any disability
benefit paid
to a member entitled to such benefit pursuant to this section shall
be
reduced by the board in an amount equal to a $1 reduction in such
benefit
for every $2 of earnings of such member which were earned during
the
previous year while such member was disabled. Such reduction shall
ap-
ply only to a member's earnings which exceed $10,000.
(11) Any benefits provided pursuant to this section and any
partici-
pating service credit given pursuant to subsection (9) shall
terminate upon
the earliest date such member is eligible for retirement upon
attainment
of the normal retirement date as provided in K.S.A. 74-4964a and
amend-
ments thereto.
(12) Any member who has received benefits under the provisions
of
this section for a period of five years or more immediately
preceding
retirement shall have such member's final average salary adjusted
upon
retirement by the actuarial salary assumption rates in existence
during
such period. Effective July 1, 1993, each member's current annual
rate
shall be adjusted upon retirement by 5% for each year of disability
after
July 1, 1993, but before July 1, 1998. Effective July 1, 1998,
such member's current annual rate shall be adjusted upon retirement by an
amount equal to the lesser of: (1) The percentage increase in the consumer
price index for all urban consumers as published by the bureau of labor
statistics of the United States department of labor minus one percent; or (2)
four percent per annum, measured from the month the disability occurs
to the month that is two months prior to the month of retirement, for
each year of disability after July 1, 1998.
(13) All payments due under this section to a minor shall be
made to
a legally appointed conservator of such minor.
(14) The provisions of this section shall be effective on and
after July
1, 1989 and shall apply only to members who were appointed or
employed
prior to July 1, 1989, and who made an election pursuant to K.S.A.
74-
4955a and amendments thereto; and persons appointed or employed
on
or after July 1, 1989.
(15) Any retirant who has been receiving benefits under the
provi- sions of this section and who returns to employment with the
same or different participating employer in the system shall be deemed
no longer retired.
Sec. 40. K.S.A. 1997 Supp. 74-4963, as amended by section
75 of
1998 Senate Bill No. 382, is hereby amended to read as follows:
74-4963.
(1) Upon termination of employment prior to the completion of 20
years
of credited service, after 30 days after such termination a
member may
withdraw such member's accumulated contributions or elect to leave
such
accumulated contributions on deposit with the system. If the
member
elects to leave the accumulated contributions on deposit with the
system
and if the member returns to employment with the same or
another
participating employer within five years, such member shall receive
credit
for such member's service prior to such termination. If the member
does
not elect to leave the accumulated contributions on deposit or if
the mem-
ber does not return to covered employment within five years, such
mem-
ber shall no longer be a member of the system and the sum of
such
member's accumulated contributions then on deposit with this
system
shall be paid to such member after making application in a form
pre-
scribed by the board and after the system has a reasonable time to
process
the application for withdrawal. Upon proper notification by the
system,
member contributions not on deposit with the system shall be paid
to the
member by the participating employer.
(2) If, after termination and withdrawal of accumulated
contribu-
tions, a former member returns to covered employment, except as
oth-
erwise provided in subsection (1), the former member shall become
a
member of the system as provided in subsection (2) of K.S.A.
74-4955
and amendments thereto. Any former member returning to covered
em-
ployment may, at the former member's option, pay to the system
within
31 days of the former member's return to covered employment, the
total
of the former member's withdrawn accumulated contributions plus
in-
terest at a rate specified by the board, in which case the member
shall
receive full credit for the member's service prior to the member's
ter-
mination. Subject to the provisions of section 83 and
amendments
thereto, members who do not elect to repay within 31 days of return
to
covered employment may elect to purchase previously forfeited
service
any time prior to retirement. Such purchase shall be made by a
lump-
sum payment equal to 1.75% of the member's current annual salary
for
each quarter of previously forfeited participating service which
the mem-
ber elects to repurchase. Upon receipt of such payment by the
system
the member shall receive full credit for the number of previously
forfeited
quarters of participating service which the member has elected to
repur-
chase. Any member who repurchases all of the member's previously
for-
feited participating service credit shall also receive all of the
member's
previously forfeited prior service credit.
(3) Upon termination and withdrawal of accumulated
contributions,
any member whose employment was, up to the member's employer's
entry date, covered by a pension system established under the
provisions
of K.S.A. 13-14a01 through 13-14a14, and amendments thereto, or
K.S.A.
14-10a01 through 14-10a15, and amendments thereto, shall be
entitled
to receive from the member's employer the sum of the member's
accu-
mulated contributions to the previous pension system.
(4) If a member has completed 20 years of credited service at
date
of termination, the member shall be granted automatically a vested
re-
tirement benefit in the system, but any time prior to the
commencement
of retirement benefit payments and before attaining age 55 the
member
may withdraw the member's accumulated contributions, whereupon
the
member's membership in this system ceases and no other amounts
shall
be payable for the member's prior and participating service credit.
Eli-
gibility of such member, who has not withdrawn the member's
accumu-
lated contributions, for retirement benefits and procedures for
making
application for retirement benefits shall be in accordance with
K.S.A. 74-
4957 and amendments thereto, except that in lieu of the
three-month
notice of intention to retire being made to the employer, such
member
shall make application for retirement in a form prescribed by the
board
and retirement benefits shall accrue from the first day of the
month fol-
lowing receipt of such application. The amount of the retirement
benefit
shall be determined as provided in K.S.A. 74-4958 and
amendments
thereto.
(5) If a member, who has a vested retirement benefit, again
becomes
an employee of a participating employer, the amount of the
member's
vested retirement benefit shall remain in effect, and any
retirement ben-
efit such member subsequently accrues shall be calculated
separately
based on credited service after again becoming an employee and
shall be
added to that which had been vested by virtue of previous service.
Eli-
gibility of such member for retirement benefits and procedures for
mak-
ing application for retirement benefits shall be in accordance with
K.S.A.
74-4957 and amendments thereto.
(6) Any member of this system who was previously a member of
the
Kansas public employees retirement system or the retirement system
for
judges and who forfeited service credit under either of those
systems by
reason of termination of employment and withdrawal of their
contribu-
tions to that system, may elect, subject to the provisions of
section 83 and
amendments thereto, to purchase service credit for the previously
for-
feited service credit by means of a single lump-sum payment and
such
service shall be recredited to that system. The amount of the
lump-sum
payment shall be determined by the actuary using the member's
then
current annual rate of compensation and the actuarial assumptions
and
tables then currently in use by that retirement system.
(7) The provisions of this section shall apply only to members
who
were appointed or employed prior to July 1, 1989, and who did not
make
an election pursuant to K.S.A. 74-4955a and amendments thereto.
Sec. 41. K.S.A. 1997 Supp. 74-4963a, as amended by
section 76 of
1998 Senate Bill No. 382, is hereby amended to read as follows:
74-4963a.
(1) Upon termination of employment prior to the completion of 15
years
of credited service, after 30 days after such termination a
member may
withdraw such member's accumulated contributions or elect to leave
such
accumulated contributions on deposit with the system. If the
member
elects to leave the accumulated contributions on deposit with the
system
and if the member returns to employment with the same or
another
participating employer within five years, such member shall receive
credit
for such member's service prior to such termination. If the member
does
not elect to leave the accumulated contributions on deposit or if
the mem-
ber does not return to covered employment within five years, such
mem-
ber shall no longer be a member of the system and the sum of
such
member's accumulated contributions then on deposit with this
system
shall be paid to such member after making application in a form
pre-
scribed by the board and after the system has a reasonable time to
process
the application for withdrawal. Upon proper notification by the
system,
member contributions not on deposit with the system shall be paid
to the
member by the participating employer.
(2) If, after termination and withdrawal of accumulated
contribu-
tions, a former member returns to covered employment, except as
oth-
erwise provided in subsection (1), the former member shall become
a
member of the system as provided in subsection (2) of K.S.A.
74-4955
and amendments thereto. Any former member returning to covered
em-
ployment may, at the former member's option, pay to the system
within
31 days of the former member's return to covered employment, the
total
of the former member's withdrawn accumulated contributions plus
in-
terest at a rate specified by the board, in which case the member
shall
receive full credit for the member's service prior to the member's
ter-
mination. Subject to the provisions of section 83 and
amendments
thereto, members who do not elect to repay within 31 days of return
to
covered employment may elect to purchase previously forfeited
service
any time prior to retirement. Such purchase shall be made by a
lump-
sum payment equal to 1.75% of the member's current annual salary
for
each quarter of previously forfeited participating service which
the mem-
ber elects to repurchase. Upon receipt of such payment by the
system
the member shall receive full credit for the number of previously
forfeited
quarters of participating service which the member has elected to
repur-
chase. Any member who repurchases all of the member's previously
for-
feited participating service credit shall also receive all of the
member's
previously forfeited prior service credit.
(3) Upon termination and withdrawal of accumulated
contributions,
any member whose employment was, up to the member's employer's
entry date, covered by a pension system established under the
provisions
of K.S.A. 13-14a01 through 13-14a14, and amendments thereto, or
K.S.A.
14-10a01 through 14-10a15, and amendments thereto, shall be
entitled
to receive from the member's employer the sum of the member's
accu-
mulated contributions to the previous pension system.
(4) If a member has completed 15 years of credited service at
date
of termination, the member shall be granted automatically a vested
re-
tirement benefit in the system, but any time prior to the
commencement
of retirement benefit payments and before attaining age 55 the
member
may withdraw the member's accumulated contributions, whereupon
the
member's membership in this system ceases and no other amounts
shall
be payable for the member's prior and participating service credit.
Eli-
gibility of such member, who has not withdrawn the member's
accumu-
lated contributions, for retirement benefits and procedures for
making
application for retirement benefits shall be in accordance with
K.S.A. 74-
4957 and amendments thereto, except that in lieu of the
three-month
notice of intention to retire being made to the employer, such
member
shall make application for retirement in a form prescribed by the
board
and retirement benefits shall accrue from the first day of the
month fol-
lowing receipt of such application. The amount of the retirement
benefit
shall be determined as provided in K.S.A. 74-4958 and
amendments
thereto.
(5) If a member, who has a vested retirement benefit, again
becomes
an employee of a participating employer, the amount of the
member's
vested retirement benefit shall remain in effect, and any
retirement ben-
efit such member subsequently accrues shall be calculated
separately
based on credited service after again becoming an employee and
shall be
added to that which had been vested by virtue of previous service.
Eli-
gibility of such member for retirement benefits and procedures for
mak-
ing application for retirement benefits shall be in accordance with
K.S.A.
74-4957 and amendments thereto.
(6) Any member of this system who was previously a member of
the
Kansas public employees retirement system or the retirement system
for
judges and who forfeited service credit under either of those
systems by
reason of termination of employment and withdrawal of their
contribu-
tions to that system, may elect, subject to the provisions of
section 83 and
amendments thereto, to purchase service credit for the previously
for-
feited service credit by means of a single lump-sum payment and
such
service shall be recredited to that system. The amount of the
lump-sum
payment shall be determined by the actuary using the member's
then
current annual rate of compensation and the actuarial assumptions
and
tables then currently in use by that retirement system.
(7) The provisions of this section shall be effective on and
after July
1, 1989 and shall apply only to members who were appointed or
employed
prior to July 1, 1989, and who made an election pursuant to K.S.A.
74-
4955a and amendments thereto; and persons appointed or employed
on
or after July 1, 1989.
Sec. 42. K.S.A. 1997 Supp. 74-4966 is hereby amended to
read as
follows: 74-4966. (a) In the case of any member whose employment
shall
be covered by social security and who is a member of the class
certified
in the case of Brazelton v. Kansas public employees retirement
system,
227 K. 443, 607 P.2d 510 (1980), any benefits payable under the
provi-
sions of K.S.A. 74-4958, 74-4959 and 74-4960 shall be reduced by
an
amount equal to 1/2 of the original social security benefits
accruing from
employment with the participating employer at the time the
member
retired. For any member already retired on the effective date of
this act,
no reduction of the original social security benefits shall be
applicable to
benefits paid prior to the effective date of this act. The
member must make an initial application for social security benefits from
employment with the participating employer and, if denied such benefits,
the member must pursue and exhaust all administrative remedies of the
social security administration which include, but are not limited to,
reconsideration and hearings. Until such initial application for benefits has been
approved by the social security administration, social security benefits may
be esti- mated and may be deducted from the amount of any benefits
payable as provided in this subsection.
(b) For any member other than a member who is a member of
the
class certified in the case of Brazelton v. Kansas public employees
retire-
ment system, 227 K. 443, 607 P.2d 510 (1980), no benefits shall be
re-
duced because of social security benefits. Any benefits which first
become
payable on or after January 1, 1976, by reason of employment with
a
participating employer participating in the Kansas police and
firemen's
retirement system, which employment was also covered by social
security,
shall be reduced by an amount equal to the value of the difference
be-
tween contributions actually made by the member and
contributions
which would have been made had there been no reduction for
contri-
butions to social security. The amount of reduction shall be made
by the
board upon the advice of the actuary at the time benefits become
payable
and shall continue until benefits are no longer payable. Should a
member,
whose employment prior to January 1, 1976, with a participating
employer
participating in the Kansas police and firemen's retirement system,
such
employment also being covered by social security, repay in a
lump-sum
prior to January 1, 1977, or on date of retirement, whichever is
earlier,
an amount equal to the difference between contributions actually
made
by the member and contributions which would have been made had
there
been no reduction for contributions to social security, there shall
be no
reduction as heretofore provided. If the payment is made after
January
1, 1977, but prior to retirement, the member will pay the actual
amount
plus interest which shall accrue from January 1, 1976, at a rate
specified
by the board of trustees.
Sec. 43. K.S.A. 1997 Supp. 74-4988 is hereby amended to
read as
follows: 74-4988. (1) (a) Each person who is a member of a
retirement
system and who becomes a member of another retirement system
shall
receive credit under each such retirement system for credited
service
under the other retirement system for the purpose of satisfying any
re-
quirement for such person to complete certain periods of service to
be-
come eligible to receive a retirement benefit or disability benefit
or for
such person's beneficiaries to receive a death benefit. The
retirement
benefit which a person becomes eligible to receive under a
retirement
system shall be based only on credited service under such
retirement
system, except that the determination of final average salary under
such
retirement system shall include the compensation received as a
member
of each other retirement system if such compensation is higher.
Except as provided in subsection (1)(b), such retirement benefit
shall become
payable upon the member submitting an application to retire under
each
system, except that a member who is not eligible to retire under
the
retirement system to which such member is not currently making
con-
tributions because such member does not meet the age requirements
of
the earliest retirement date of such system may retire, upon
meeting the
requirements for retirement, under the provisions of the retirement
sys-
tem which the member had been most recently making
contributions.
No further rights and benefits will accrue under the retirement
system
to which the member is not currently making contributions after the
date
the member retires from the system from which the member had
been
most recently making contributions and the member will be retired
and
benefits shall commence on the date that the member would first
have
attained retirement age from the system to which the member is
not
currently making contributions.
(b) The requirement that a member shall submit an
application to retire under each system before becoming eligible to receive any
retire- ment system benefits shall not apply to any member who was
active and contributing to one retirement system and who was inactive in
another retirement system on July 1, 1995.
(2) Any member who is not otherwise eligible for service
credit as
provided for in subsection (1)(a) of K.S.A. 74-4913 or subsection
(1)(a)
of K.S.A. 74-4936 and amendments thereto, may be granted credit
for
the service upon the attainment of 38 quarters of participating
service in
any retirement system as defined in subsection (3)(b) or upon
retirement.
(3) As used in this section:
(a) ``Member'' means a person who has attained membership in
a
retirement system, who has not retired under such retirement system
and
who has not withdrawn such person's accumulated contributions for
such
retirement system; and
(b) ``retirement system'' means the Kansas public employees
retire-
ment system, the Kansas police and firemen's retirement system and
the
retirement system for judges.
Sec. 44. K.S.A. 1997 Supp. 74-4990 is hereby amended to
read as
follows: 74-4990. (1) An arrearage obligation shall arise when it
is ascer-
tained that required contributions have not been made to the
Kansas
public employees retirement system at the required time. Such
arrearage
obligation shall be met by the employer by preparing a report on
the
appropriate form to correct all previous quarterly
reports affected by the
arrearage obligation. Such report shall be submitted by the
employer with
the first quarterly report after such an arrearage
obligation is discovered
or as the board of trustees of the system may otherwise prescribe.
The
proper remittance to cover employer and employee
contributions in ar-
rearage shall accompany such report or as the board of trustees of
the
system may otherwise prescribe for all arrearages other than for
the year of service as provided in K.S.A. 74-4911 and amendments thereto.
In addition, the employer will pay to the system, interest at the
current ac- tuarial interest rate assumption adopted by the board. If the
employee retires within 24 months of the employer first reporting this
arrearage, the employer will pay to the system a lump-sum amount equal to
the difference of the actuarial present value of the retirement
benefit and the accumulated value of any contributions represented by the
arrearage. No employee shall pay all or any part of the arrearage. The
amounts due for
an arrearage obligation shall be based upon the compensation paid
to the
member and at the rates in effect at the time the contributions
were
originally due to be paid to the system. The employer shall not
be required to pay the employee contributions or interest on arrearages of
six month or less.
(2) An arrearage obligation shall arise when it is
ascertained that the employee and employer should have made contributions to the
Kansas public employees retirement system for all or part of the year
of service as provided in K.S.A. 74-4911 and amendments thereto. Such
arrearage obligation shall be met by the employer by preparing a report on
the appropriate form to correct all previous reports affected by the
arrearage obligation. Such report shall be submitted by the employer with
the first report after such an arrearage obligation is discovered or as
the board of trustees of the system may otherwise prescribe. The proper
remittance to cover employer contributions in arrearage shall accompany such
report or as the board of trustees of the system may otherwise
prescribe. The amounts due for an arrearage obligation shall be based upon
compensa- tion paid to the member and at the rates in effect at the time
contributions were originally due to be paid to the system.
(2)(3) In the event the proper
remittance to cover employee contri-
butions in arrearage does not accompany such report, service
credits for
that period of employment involving the arrearage obligation may be
pur-
chased by the member as participating service at any time prior to
re-
tirement by making application therefor and paying to the system a
single
lump-sum amount determined by the system's actuary using (a) the
mem-
ber's then current annual rate of compensation, or if not actively
em-
ployed, the member's annual rate of compensation when last
participating
and (b) the actuarial assumptions and tables currently in use by
the sys-
tem.
(3)(4) Except as otherwise provided in
this section, any member may
purchase participating service credits for that period of
employment in-
volving the arrearage obligation as described in this section, if
first com-
menced prior to January 1, 1996, by electing to effect such
purchase by
means of having employee contributions as provided in K.S.A.
74-4919
and amendments thereto deducted from such member's compensation
at a percentage rate equal to two times or three times the
employee's rate
of contribution as provided in K.S.A. 74-4919 and amendments
thereto
for such periods of service, in lieu of a lump-sum amount as
provided in
this section. Such deductions shall commence at the beginning of
the
quarter following such election and shall remain in effect until
all quarters
of such service have been purchased. Any person may make any
such
purchase as described in this section, if first commenced in
calendar year
1996 or thereafter, at an additional rate of contribution, in
addition to the
employee's rate of contribution as provided in K.S.A. 74-4919 and
amend-
ments thereto, based upon the member's attained age at the time
of
purchase and using actuarial assumptions and tables in use by the
retire-
ment system at such time of purchase, for such periods of service,
in lieu
of a lump-sum amount as provided in this section. Such additional
rate
of contribution shall commence at the beginning of the quarter
following
such election and shall remain in effect until all quarters of such
service
have been purchased.
(4)(5) Notwithstanding the provisions
of this section, no employee
contributions shall be due and owing for stipulated
compensation
amounts paid to any employee or former employee of a city of the
first
class whose dispute with such city was settled by stipulation of
settlement
either in Case No. 90-2328-0 in the United States District Court
for the
District of Kansas or in Case No. 91-1182 in the Supreme Court of
the
United States. Any such employee or former employee may elect to
remit
such employee contributions to the system. No employee or former
em-
ployee whose contributions are deemed not to be due or owing or
who
did not elect to remit such employee contributions to the system as
pro-
vided in this section according to this provision shall have any
claim
against the Kansas public employees retirement system for any
retire-
ment, disability, death or survivors benefit or any return of
accumulated
contributions based on such contributions or on the
compensation
amounts that would have been reflected by such contributions.
Sec. 45. K.S.A. 1997 Supp. 74-4992, as amended by section
87 of
1998 Senate Bill No. 382, is hereby amended to read as follows:
74-4992.
(a) Any such member of the legislature or former member of the
legis-
lature as described in K.S.A. 74-4991 and amendments thereto shall
be-
come a member on entry date or upon filing with the board an
irrevocable
election to become or not to become a member of the system. In
the
event that any such member of the legislature or former member of
the
legislature fails to file the election to become a member of the
retirement
system, it shall be presumed that such member of the legislature or
for-
mer member of the legislature has elected not to become a member.
The
election to participate shall become effective immediately upon
making such election, if such election is made within 14 days of taking
the oath of office or, otherwise, on the first day of the first
payroll period of the
first quarter following receipt of the election in the office of
the retire-
ment system.
(b) Any member of the legislature who had attained membership
in
the Kansas public employees retirement system prior to taking the
oath
of office as a member of the legislature may elect not to
participate in
the Kansas public employees retirement system for the purpose of
service
as a member of the legislature. This election, which is
irrevocable, must
be filed within the offices of the system. Any member of the
legislature
who is a member of the retirement system on the effective date of
this
act and was a member of the retirement system at the time of taking
the
oath of office may elect not to participate in the retirement
system for
service as a member of the legislature if such irrevocable election
is filed
within the offices of the system.
(c) Subject to the provisions of section 83, and amendments
thereto,
any member of the legislature who elected not to participate in the
re-
tirement system, and who is not a contributing member with any
other
participating employer, may purchase such participating service by
mak-
ing a single lump-sum payment in an amount determined by the
actuary
using the then current rate of compensation and the actuarial
assumptions
and tables currently in use by the system.
(d) Subject to the provisions of section 83, and amendments
thereto,
except as otherwise provided in this section, any member of the
retire-
ment system may purchase participating service credit for
employment
service as described in this section, if first commenced prior to
January
1, 1996, by electing to effect such purchase by means of having
employee
contributions as provided in K.S.A. 74-4919 and amendments
thereto
deducted from such member's compensation at a percentage rate
equal
to two times or three times the employee's rate of contribution as
pro-
vided in K.S.A. 74-4919 and amendments thereto for such periods
of
service in lieu of a lump-sum amount as provided in this section.
Such
deductions shall commence at the beginning of the quarter following
such
election and shall remain in effect until all quarters of such
service have
been purchased. Any person may make any such purchase as
described
in this section, if first commenced in calendar year 1996 or
thereafter, at
an additional rate of contribution, in addition to the employee's
rate of
contribution as provided in K.S.A. 74-4919 and amendments
thereto,
based upon the member's attained age at the time of purchase and
using
actuarial assumptions and tables in use by the retirement system at
such
time of purchase, for such periods of service, in lieu of a
lump-sum
amount as provided in this section. Such additional rate of
contribution
shall commence at the beginning of the quarter following such
election
and shall remain in effect until all quarters of such service have
been
purchased.
New Sec. 46. The retirement system for judges is a
division of the
Kansas public employees retirement system created by K.S.A.
74-4903
and amendments thereto and is subject to the provisions of K.S.A.
74-
4901 et seq. and amendments thereto.
New Sec. 47. (1) Any member of the retirement system for
judges
may purchase participating credit for periods of active service in
the
armed forces of the United States or in the commissioned corps of
the
United States public health service and for periods of service
required to
fulfill the requirements of section 651 of title 10, United States
code,
which does not exceed six years. Such judge shall be entitled to
purchase
one quarter of participating service credit for each year of
service required
to fulfill the requirements of section 651 of title 10, United
States code.
Such purchase shall be effected by the judge submitting proof of
such
service acceptable to the board and electing in writing to have
employee
contributions as provided in K.S.A. 20-2603 and amendments
thereto
deducted from such judge's compensation at an additional rate of
con-
tribution, in addition to the employee's rate of contribution as
provided
in K.S.A. 20-2603 and amendments thereto, based upon the judge's
at-
tained age at the time of purchase and using actuarial assumptions
and
tables in use by the retirement system at such time of purchase for
such
periods of service. Such additional rate of contribution shall
commence
at the beginning of the quarter following such election and shall
remain
in effect until all of the full quarters of such service have been
purchased.
(2) Any member of the retirement system who has not retired
may
purchase participating service credit for military service as
described in
this section by electing to effect such purchase by means of a
single lump-
sum payment in lieu of employee contributions as provided in this
section.
The lump-sum payment shall be an amount determined by the
actuary
using the judge's then current annual rate of compensation, the
actuarial
assumptions and tables currently in use by the retirement system
and the
judge's attained age. No participating employer shall pay all or
any part
of the cost of any additional participating service credit to be
purchased
by means of a lump-sum payment by a judge under this section.
New Sec. 48. The retirement benefit, pension or annuity
payments
accruing after June 30, 1998, to each retirant of the state school
retire-
ment system who retired prior to January 1, 1971, and who had at
least
25 years or more of service credit, shall be increased by an amount
equal
to $100.
New Sec. 49. The provisions of K.S.A. 74-4999 et
seq. and amend-
ments thereto shall apply to any member of the Kansas public
employees
retirement system who was a court reporter for a magistrate court
prior
to July 1, 1975, and who is a full-time court reporter on the
effective date
of this act.
New Sec. 50. (a) The retirement benefit, pension or
annuity pay-
ments accruing after June 30, 1998, to each retirant and each local
school
annuitant shall be increased by an amount equal to 3.0% of the
retirement
benefit, pension or annuity payment in effect on July 1, 1998, from
the
retirant's retirement system and shall be paid by such retirement
system
to the retirant and the local school annuitant during such
period.
(b) As used in this section:
(1) ``Retirant'' means (A) any person who is a member of a
retirement
system and who retired prior to July 1, 1997, (B) any person who is
a
special member of a retirement system and who retired prior to July
1,
1997, (C) any person who is a joint annuitant or beneficiary of any
mem-
ber described in clause (A) or any special member described in
clause
(B) and (D) any long-term disability benefit recipient.
(2) ``Retirement system'' means the Kansas public employees
retire-
ment system, the Kansas police and firemen's retirement system, the
state
school retirement system and the retirement system for judges.
(3) ``Local school annuitant'' means (A) any person who is an
annui-
tant with 10 or more years of service, who is receiving an annuity,
whose
annuity is not included, in whole or in part, in payments made to
such
school district under K.S.A. 72-5512b and amendments thereto, and
who
is not a member of a group I or of group II as defined in K.S.A.
72-5518
and amendments thereto, and (B) any person who is receiving an
annuity
and who retired prior to September 1, 1981.
(4) ``Long-term disability recipient'' means any person
receiving a
long-term disability benefit under K.S.A. 74-4927 and
amendments
thereto prior to July 1, 1997.
New Sec. 51.
KANSAS PUBLIC EMPLOYEES RETIREMENT SYSTEM
(a) There is appropriated for the above agency from the state
general
fund for the fiscal year ending June 30, 1999, the following:
Provided, That all expenditures from the actuarial
funding--3% postretirement benefit in-
crease account shall be to finance the amount required to fund the
actuarial liability of the
state obligation for the one-time postretirement benefit increase
for persons who retired
prior to July 1, 1997, and for whom the state paid employer
contributions (1) under the
Kansas public employees retirement system for those persons who
were eligible for assis-
tance from the state board of regents in the purchase of annuities
as provided in K.S.A. 74-
4925, and amendments thereto, (2) under the Kansas public employees
retirement system
for those persons who were employed by eligible employers described
by K.S.A. 74-4931,
and amendments thereto, and for whom employer contributions were
paid as provided by
K.S.A. 74-4939, and amendments thereto, (3) under the Kansas police
and firemen's re-
tirement system as provided by K.S.A. 74-4951 et seq., and
amendments thereto, or (4)
under the retirement system for judges as provided by K.S.A.
20-2601 et seq., and amend-
ments thereto.
New Sec. 52. (1) Notwithstanding the provisions of
subsection (9)
of K.S.A. 74-4902 and amendments thereto, any payment for
accumu-
lated sick leave, vacation or annual leave, severance pay or any
other
payments to the member which, when upon retirement, increases
the
member's final average salary by more than 15%, shall require the
par-
ticipating employer to pay the system a lump-sum amount equal to
the
system's actuarial liability for benefits attributable to and
payable on ac-
count of such excess over the 15%.
(2) As used in this section, ``system'' means the Kansas
public em-
ployees retirement system, the Kansas police and firemen's
retirement
system and the retirement system for judges.
New Sec. 53. (1) Any payment made to a named beneficiary
as pro-
vided in this section, shall be a full discharge and release to the
system
from any further claims. Any payment made to a beneficiary as
provided
in clauses (A), (B), (C), (D), (E) or (F) of subsection (7) of
K.S.A. 74-
4902 or in clauses (1), (2), (3), (4), (5) or (6) of subsection (k)
of K.S.A.
20-2601, and amendments thereto, as determined by the board, shall
be
a full discharge and release to the system from any further claims.
When-
ever any payment is payable to more than one beneficiary such
payment
shall be made to such beneficiaries jointly.
(2) Any benefits payable to a beneficiary or beneficiaries who
are
incompetent shall be made in the name of the beneficiary or
beneficiaries
and delivered to the lawfully appointed conservator of such
beneficiaries
who was nominated by will or as otherwise provided by law, except
that
in those cases where the benefit involves an amount not to exceed
$500,
the board is hereby authorized in its discretion without the
appointment
of a conservator or in the giving of a bond to pay such amount as
is due
to the incompetent person or persons themselves.
(3) Any lump-sum benefits payable to a beneficiary or
beneficiaries
who are minor children and which amount totals $10,000 or more
shall
be made in the name of the beneficiary or beneficiaries and
delivered to
the lawfully appointed conservator of such beneficiaries who was
nomi-
nated by will or as otherwise provided by law except that in those
cases
where the benefit involves an amount not to exceed $500, the board
is
hereby authorized in its discretion without the appointment of a
conser-
vator or the giving of a bond to pay such amount as is due to the
minor
or minors themselves. If no conservator is lawfully appointed, the
system
will credit interest at 4% on all benefits due and payable and
shall pay all
benefits plus interest to the beneficiary or beneficiaries who are
minor
children when they attain age 18 years. Any benefits payable to a
bene-
ficiary or beneficiaries who are minor children and which amount
which
totals more than $500 but less than $10,000, may be made in the
name
of the beneficiary or beneficiaries and paid under the uniform
transfers
to minors act as provided in K.S.A. 38-1701 et seq. and
amendments
thereto.
(4) Any monthly benefits payable to a beneficiary or
beneficiaries who
are minor children shall be made in the name of the beneficiary or
ben-
eficiaries and delivered to the lawfully appointed conservator of
such ben-
eficiaries who was nominated by will or as otherwise provided by
law. If
no conservator is lawfully appointed, the system will credit
interest at 4%
on all benefits due and payable and shall pay all benefits plus
interest to
the beneficiary or beneficiaries who are minor children when they
attain
age 18 years.
(5) As used in this section, ``system'' means the Kansas
public em-
ployees retirement system, the Kansas police and firemen's
retirement
system and the retirement system for judges.
New Sec. 54. Any employee of a participating employer who
is a
member of the Kansas public employees retirement system, who
was
previously employed in Kansas in nonfederal governmental
employment
with an employer who has not affiliated with the system under
K.S.A. 74-
4910 and amendments thereto, and which service otherwise meets
the
requirements of an employee as prescribed in subsection (14) of
K.S.A.
74-4902 or subsection (4) of K.S.A. 74-4932 and amendments
thereto,
may elect to purchase service credit for such in-state nonfederal
govern-
mental employment. At the election of the member, the benefit for
each
such year of employment shall be either 1% or 1.75% of the final
average
salary of any such member. For any member who elects to
purchase
service credit as provided in this section at the 1% rate, such
member
may elect to purchase such service credit at an additional amount
of .75%
of final average salary of such member in a lump-sum amount as
other-
wise provided in this subsection. Such member may purchase such
service
credit by making application therefor prior to the date of
retirement at
an additional rate of contribution in addition to the employee's
rate of
contribution as provided in K.S.A. 74-4919 and amendments
thereto,
based upon the member's attained age at the time of purchase and
using
actuarial assumptions and tables in use by the retirement system at
the
time of such purchase. Such additional rate of contribution shall
com-
mence at the beginning of the quarter following such election and
shall
remain in effect until all quarters of such service have been
purchased.
Any such member may purchase such service credit as described in
this
section by electing to effect such purchase by means of a single
lump-
sum payment in lieu of employee contributions as provided in this
section
in an amount equal to the then present value of the benefits being
pur-
chased as determined by the actuary using the member's attained
age,
annual compensation at the time of purchase and the actuarial
assump-
tions and tables then in use by this system. The lump-sum payment
shall
be made immediately upon being notified of the amount due. No
pur-
chase of service or any part thereof will be nullified by the
subsequent
affiliation of an employer with the system.
Sec. 55. K.S.A. 20-2601a, 20-2606, as amended by section
17 of 1998
Senate Bill No. 382, 20-2609, 20-2610, 20-2620, as amended by
section
20 of 1998 Senate Bill No. 382, 72-5501, as amended by section 22
of
1998 Senate Bill No. 382, 74-4919i, as amended by section 45 of
1998
Senate Bill No. 382, 74-4924 and 74-4955a and K.S.A. 1998 Supp.
20-
2601, as amended by section 15 of 1998 Senate Bill No. 382,
46-2201,
74-4902, as amended by section 26 of 1998 Senate Bill No. 382,
74-4904,
74-4905, 74-4907, 74-4908, 74-4910, 74-4911, as amended by section
28
of 1998 Senate Bill No. 382, 74-4913, as amended by section 33 of
1998
Senate Bill No. 382, 74-4914, 74-4914e, 74-4917, 74-4919a, as
amended
by section 38 of 1998 Senate Bill No. 382, 74-4919h, as amended
by
section 44 of 1998 Senate Bill No. 382, 74-4919n, as amended by
section
49 of 1998 Senate Bill No. 382, 74-4919p, 74-4919q, 74-4920,
74-4921,
74-4927, as amended by section 53 of 1998 Senate Bill No. 382,
74-4936a,
as amended by section 63 of 1998 Senate Bill No. 382, 74-4937,
74-4939,
74-4952, as amended by section 65 of 1998 Senate Bill No. 382,
74-4956,
as amended by section 68 of 1998 Senate Bill No. 382, 74-4957,
74-4957a,
74-4960, as amended by section 72 of 1998 Senate Bill No. 382,
74-4960a,
as amended by section 73 of 1998 Senate Bill No. 382, 74-4963,
as
amended by section 75 of 1998 Senate Bill No. 382, 74-4963a, as
amended by section 76 of 1998 Senate Bill No. 382, 74-4966,
74-4988,
74-4990 and 74-4992, as amended by section 87 of 1998 Senate Bill
No.
382, are hereby repealed.
Sec. 56. This act shall take effect and be in force from
and after its
publication in the statute book.