CHAPTER 171
HOUSE BILL No. 2575
An Act concerning early retirement incentive programs;
amending K.S.A. 1998 Supp.
71-212 and 72-5395 and repealing the existing
sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 1998 Supp. 71-212
is hereby amended to read as
follows: 71-212. (a) The board of trustees of any community
college may
establish an early retirement incentive program for the benefit of
the
employees of the community college for the purpose of
reducing, in
whole or in part, the penalty under the federal insurance
contributions
act or the Kansas public employees retirement system, or
both, for re-
tirement of employees prior to the normal retirement age of 65
years. As
used in this act, an ``early retirement incentive program'' is a
program
that provides cash payments, either in the form of a lump-sum
payment
at the beginning of the fiscal year, or in regular payments during
the fiscal
year. No payment pursuant to an early retirement incentive program
as
provided in this section shall be made prior to the retirement
under the
provisions of the Kansas public employees retirement system of any
such
employee of the community college. Commencing in the fiscal year
that
commenced in calendar year 1996 and at least once every three
years
thereafter, each board that has established or
establishes an early retire-
ment incentive program as provided in this section shall employ and
pay
an actuary who is a member of the American academy of actuaries
and
the society of actuaries and is an enrolled actuary under the
employees
retirement income security act to conduct an actuarial valuation of
the
liabilities of the program, except that the initial 1996 actuarial
valuation
shall not be required as provided in this section of any board that
has
conducted such an actuarial valuation of its early retirement
incentive
program within the preceding 18 months of the effective date of
this act.
Any early retirement incentive program established as provided in
this
section after the effective date of this act shall conduct the
actuarial val-
uation as required in this section within six months of such
establishment
and at least once every three years thereafter. Each actuarial
valuation
required by this section shall be reported to the joint committee
on pen-
sions, investments and benefits by such board no later than
January 1,
2000.
(b) The board of trustees of any
community college shall not com-
mence any new early retirement incentive programs from the
effective
date of this act until July 1, 2000.
(c) An early retirement incentive
program established pursuant to
subsection (a) prior to the effective date of this act is hereby
declared
valid.
Sec. 2. K.S.A. 1998 Supp. 72-5395
is hereby amended to read as
follows: 72-5395. (a) The board of education of any school
district may
establish an early retirement incentive program for the benefit of
the
employees of the district for the purpose of reducing, in
whole or in part,
the penalty under the federal insurance contributions act
or the Kansas
public employees retirement system, or both, for
retirement prior to the
normal retirement age of 65 years. As used in this act, an ``early
retirement
incentive program'' is a program that provides cash payments,
either in
the form of a lump-sum payment at the beginning of the fiscal year,
or
in regular payments during the fiscal year. No payment pursuant to
an
early retirement incentive program as provided in this section
shall be
made prior to the retirement under the provisions of the Kansas
public
employees retirement system for any employee of the district.
Com-
mencing in the fiscal year that commenced in calendar year 1996 and
at
least once every three years thereafter, each board that has
established
or establishes an early retirement incentive
program as provided in this
section shall employ and pay an actuary who is a member of the
American
academy of actuaries and the society of actuaries and is an
enrolled ac-
tuary under the employees retirement income security act to conduct
an
actuarial valuation of the liabilities of the program, except that
the initial
1996 actuarial valuation shall not be required as provided in this
section
of any board that has conducted such an actuarial valuation of its
early
retirement incentive program within the preceding 18 months of the
ef-
fective date of this act. Any early retirement incentive program
estab-
lished as provided in this section after the effective date of this
act shall
conduct the actuarial valuation as required in this section within
six
months of such establishment and at least once every three years
there-
after. Each actuarial valuation required by this section shall be
reported
to the joint committee on pensions, investments and benefits by
such
board no later than January 1, 2000.
(b) The board of education of any
school district shall not commence
any new early retirement incentive programs from the effective
date of
this act until July 1, 2000.
(c) An early retirement incentive
program established pursuant to
subsection (a) prior to the effective date of this act is hereby
declared
valid.
Sec. 3. K.S.A. 1998 Supp. 71-212 and 72-5395 are
hereby repealed.
Sec. 4. This act shall take effect and be in force
from and after its
publication in the Kansas register.
Approved May 13, 1999.
Published in the Kansas Register May 20, 1999.
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