CHAPTER 3 SENATE BILL No. 41 An Act concerning retirement and pensions; relating to the Kansas public employees re-
tirement system; employer contributions; amending K.S.A. 1998 Supp. 74-49,126 and
repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 1998 Supp. 74-49,126 is hereby amended to read
as follows: 74-49,126. (1) Notwithstanding the provisions of subsection
(9) of K.S.A. 74-4902 and amendments thereto, any payment for accu-
mulated 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% or require the participating employer
to pay the system as provided in subsection (2).

      (2) In lieu of a lump-sum amount as provided in subsection (1), such
participating employer may elect to pay the system in an amount sufficient
to amortize over a period of no more than 15 years commencing January
1, 2000, the system's actuarial liability for such benefits attributable to
and payable on account of such excess over the 15%. The board shall
determine for each such participating employer the amount sufficient for
amortization. On the basis of such determination the board shall annually
certify to each such participating employer separately an actuarially de-
termined rate of contribution which shall be required to be paid by that
participating employer. Such rate shall be termed the participating em-
ployer's excess liability contribution.

      (2) (3) As used in this section, ``system'' means the Kansas public
employees retirement system, the Kansas police and firemen's retirement
system and the retirement system for judges. 
Sec.  2. K.S.A. 1998 Supp. 74-49,126 is hereby repealed.
 Sec.  3. This act shall take effect and be in force from and after its
publication in the statute book.

Approved February 24, 1999.
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