CHAPTER 112 HOUSE BILL No. 2034 (Amended by Chapter 152) An  Act concerning public employment, public officers and employees; relating to com-
pensation for overtime work; prescribing certain rates and procedures; cost-of-living
adjustments and employer contribution rates under the Kansas public employees retire-
ment system and systems thereunder; postretirement benefit increase; group insurance
reserve fund; relating to reimbursement of moving expenses for certain state officers
and employees; amending K.S.A. 20-2605, 75-5537 and 76-727 and K.S.A. 1999 Supp.
74-4920, 74-4927, 74-4927f and 74-4967 and repealing the existing sections; also re-
pealing K.S.A. 1999 Supp. 75-6801.
Be it enacted by the Legislature of the State of Kansas:

      New Section  1. Each fiscal year commencing after June 30, 2001,
the secretary of administration shall prepare and distribute to each state
officer or employee an annual one-page summary of such officer or em-
ployee's compensation package from the state, including salary, benefits
under the state health care benefits program of the Kansas state employ-
ees health care commission, the cafeteria plan administered by the sec-
retary of administration, retirement, insured and other benefits under the
Kansas public employees retirement system, paid leave and other benefits
provided for under the Kansas civil service act and any other benefits
provided to such officer or employee.

      Sec.  2. On July 11, 2000, K.S.A. 75-5537 is hereby amended to read
as follows: 75-5537. (a) Except as otherwise required by federal law or
by the provisions of this section, after December 31, 1994 June 11, 2000,
any rule and regulation relating to overtime compensation for state em-
ployees adopted by the secretary of administration shall provide that only
hours actually worked may be considered in determining whether over-
time compensation is due and the amount of overtime compensation due,
whether in the form of overtime pay or compensatory time off in lieu of
overtime pay. After December 31, 1994 June 11, 2000, to the extent that
any rule and regulation previously adopted by the secretary of adminis-
tration prior to the effective date of this act contains a provision contrary
to this section, that portion of the rule and regulation, and documents
pertaining to such portion of the rule and regulation, shall have no effect
and shall not be enforced.

      (b) Each official state holiday which occurs within a regularly sched-
uled workweek may be counted as time worked in determining the amount
of overtime work for state employees.

      Sec.  3. K.S.A. 20-2605 is hereby amended to read as follows: 20-
2605. (a) The board 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 retirement system for judges. The actuary shall:

      (1) As soon after the effective date as practicable and once every three
years thereafter, make a general investigation of the actuarial experience
under the retirement system for judges including mortality, retirement,
employment turnover and interest, and recommend actuarial tables for
use in valuations and in calculating actuarial equivalent values based on
such investigation; make a valuation of the liabilities and reserves of the
retirement system for judges, and a determination of the contributions
required by the retirement system for judges to discharge its liabilities
and recommend to the board rates of employer contributions required
to establish and maintain the retirement system for judges on an actuarial
reserve basis.

      (2) Perform such other duties as may be assigned by the board.

      (b) Upon the basis of the actuarial valuation and appraisal and upon
the recommendation of the actuary, the board shall certify, on or before
July 15 of each year, to the division of budget an actuarially determined
estimate of the rate of contribution which will be required, together with
all judges' contributions and other assets of the retirement system for
judges to pay all liabilities which shall exist or accrue under the retirement
system for judges, including amortization of the unfunded accrued lia-
bility over a period of 40 years commencing on July 1, 1993. The rate of
contribution for the state determined under this section shall not include
the costs of administration of the system.

      (c) 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 the retirement
system for judges as certified by the board and shall present the same to
the legislature for allowance and appropriation.

      (d) Except as otherwise provided by law, the actuarial cost of any
legislation enacted by the Kansas legislature, except the actuarial cost of
section 9, shall be reflected in the employer contribution rate in the fiscal
year immediately following such enactment.

      Sec.  4. K.S.A. 1998 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 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 amend-
ments 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
contribution 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 K.S.A. 1998 Supp. 74-4950i
will be included in the June 30, 1998, actuarial valuation in determining
contribution rates for participating employers. The actuarial accrued lia-
bility incurred for the provisions of K.S.A. 1998 Supp. 74-4950i shall be
amortized over 15 years.

      (8) Except as otherwise provided by law, the actuarial cost of any
legislation enacted by the Kansas legislature, except the actuarial cost of
section 9, shall be in addition to the employer contribution rates certified
for the employer contribution rate in the fiscal year immediately following
such enactment.

      (9) 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) (10) 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 certification, but the rate of contribution during the first year fol-
lowing 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 respec-
tive employer's prior service liability.

      (10) (11) 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.

      (11) (12) 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 three days after the end of the period covered by
the remittance by electronic funds transfer. Remittances of such deduc-
tions and contributions received after such date are delinquent. Delin-
quent payments 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 em-
ployer by any department or agency of the state.

      Sec.  5. K.S.A. 1999 Supp. 74-4927 is hereby amended to read as
follows: 74-4927. (1) The board may establish a plan of death and long-
term disability benefits 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 installments. 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 formula for establishing a reasonable rate of annual compen-
sation 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 ben-
efits 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 long-term disability benefit
payments under such plan. During the period in which such member is
pursuing such administrative remedies prior to a final decision of the
social security administration, social security disability benefits may be
estimated and may be deducted from the amount of long-term disability
benefit payments under such plan. Such long-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 em-
ployer. 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
long-term disability benefits receive less than $50 per month. As used in
this section, ``workers compensation benefits'' means the total award of
disability benefit payments under the workers compensation act notwith-
standing any payment of attorney 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
long-term disability benefit as described in this section shall not be eli-
gible to receive such benefit due to visual impairment as such impairment
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 ad-
justed 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
disability 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
long-term disability benefit or both such benefits. Each such contract 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 long-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 estab-
lished 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. Except as oth-
erwise provided by this subsection, each participating employer shall ap-
propriate and pay to the system in such manner as the board shall pre-
scribe in addition to the employee and employer retirement contributions
an amount equal to .6% of the amount of compensation on which the
members' contributions to the Kansas public employees retirement sys-
tem are based for deposit in the group insurance reserve fund. Notwith-
standing the provisions of this subsection, no participating employer shall
appropriate and pay to the system any amount provided for by this sub-
section for deposit in the group insurance reserve fund for the period
commencing on April 1, 2000, and ending on June 30, 2001.

      (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 long-term disability
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.  6. K.S.A. 1999 Supp. 74-4927f is hereby amended to read as
follows: 74-4927f. (a) For the purposes of providing the ``insured death
benefit'' as prescribed in K.S.A. 74-4927 and amendments thereto, to all
persons who are members of the retirement system for judges, on and
after the first day of the first payroll period of the fiscal year ending June
30, 1984, the term ``member'' as used in K.S.A. 74-4927 and amendments
thereto, and as used in this section shall include members of the retire-
ment system for judges.

      (b) Except as otherwise provided by this subsection, the employer of
any member who is a member of the retirement system for judges shall
pay to the Kansas public employees retirement system in such manner as
the board of trustees shall prescribe, an amount equal to .4% of the
amount of compensation on which the member's contributions to the
retirement system for judges are based for deposit in the group insurance
reserve of the Kansas public employees retirement fund, beginning with
the first day of the first payroll period of the fiscal year ending June 30,
1984, and each payroll period thereafter, in lieu of the amount required
to be paid under subsection (4) of K.S.A. 74-4927 and amendments
thereto. Notwithstanding the provisions of this subsection, no employer
shall pay to the system any amount provided for by this subsection for
deposit in the group insurance reserve fund for the fiscal year ending June
30, 2001.

      (c) Coverage under the plan of death benefits shall begin with the
first day of the first payroll period of the fiscal year ending June 30, 1984,
for such members and other persons as defined in this section.

      Sec.  7. K.S.A. 1998 Supp. 74-4967 is hereby amended to read as
follows: 74-4967. (1) 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 participating employer an actuarially deter-
mined estimate of the rate of contribution which shall be required to be
paid by each such participating 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
uniform for all participating employers, and shall be comprised of a rate
for benefits accruing after June 30, 1993, and a rate for amortization of
the additional liability for benefits provided by this act which is attribut-
able to service rendered before July 1, 1993. Such additional liability shall
be amortized over a period of 40 years commencing on July 1, 1993, by
annual payments that increase 4% for each year remaining in the amor-
tization period. The employer's rate of contribution determined under
this section shall not include the costs of administration of the system.

      (2) The board shall determine for each employer separately an
amount sufficient to amortize over a period of not to exceed 40 years all
liabilities for past 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 participating employer separately an actuarially
determined estimate of the rate of contribution which shall be required
to be paid by that participating employer to pay all of the liabilities for
such past service costs. Such rate shall be termed the employer's prior
service contribution. The board may enter into agreements with any par-
ticipating employer which has employees or retirants under the special
pension systems established under K.S.A. 13-14a01 to 13-14a14, inclu-
sive, and amendments thereto or K.S.A. 14-10a01 to 14-10a15, inclusive,
and amendments thereto, for the purpose of scheduling the payment of
such past service costs in an orderly manner which will tend to stabilize
the annual total financial burden on such employers in meeting their
present and future obligations under this system and such special systems,
but in no event shall the annual prior service contribution be less than
the interest cost on the total of such past service liability.

      (3) Each participating employer shall appropriate and pay to the sys-
tem a sum sufficient to satisfy the obligations 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 employer 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 counties, to pay a portion of the principal and in-
terest on bonds issued by cities under the authority of K.S.A. 12-1774,
and amendments thereto, for the financing of redevelopment projects
upon property located in such 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 subdi-
vision may pay such costs from any employee benefits contribution fund
established pursuant to K.S.A. 12-16,102 and amendments thereto.

      (5) Employer contributions shall in no way be limited by any other
act which now or in the future establishes or limits the compensation of
any member.

      (6) The rate of contribution certified to each participating employer
as provided in this section shall apply during the fiscal year of such par-
ticipating employer which begins in the second calendar year following
the year of the actuarial valuation, but the rate of contribution during the
first year following the employer's entry date shall be equal to 16% of the
amount of compensation on which members contribute during the year.

      (7) Each participating employer shall remit quarterly, or as the board
may otherwise provide, all employee deductions and required employer
contributions to the executive secretary for credit to the Kansas public
employees retirement fund within 20 days after the end of the period
covered by the remittance or within 25 days after forms or written in-
structions from the system were mailed by the system to such employer,
whichever is later. Remittances of such deductions and contributions re-
ceived after such date are delinquent. Delinquent payments due under
this subsection (7) shall be subject to interest at the rate established for
interest on judgments under subsection (a) of K.S.A. 16-204 and amend-
ments 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.

      (8) Except as otherwise provided by law, the actuarial cost of any
legislation enacted by the Kansas legislature, except the actuarial cost of
section 9, shall be reflected in the employer contribution rate in the fiscal
year immediately following such enactment.

      Sec.  8. K.S.A. 76-727 is hereby amended to read as follows: 76-727.
(a) The chief executive officer of any state educational institution, when
approved by the state board of regents, may extend an invitation to any
person to meet with representatives of such state educational institution
for the purpose of consultation preliminary to such person's possible se-
lection as a member of the unclassified staff at such state educational
institution, and in such case, such state educational institution may pay
the actual and necessary travel and subsistence expenses of such invitee
in meeting with such representatives. The state board of regents may
extend an invitation to any person to meet with the state board of regents
or with representatives of such board for the purpose of consultation
preliminary to such person's possible selection as chief executive officer
of a state educational institution under the control and supervision of the
state board of regents or as executive officer of the state board of regents,
and in such case, the state board of regents may pay the actual and nec-
essary travel and subsistence expenses of such invitee and such invitee's
spouse in meeting with the board or with such representatives. The travel
and subsistence expenses shall be paid from funds available or appropri-
ated for travel and subsistence.

      (b)  (1) Subject to the limitations of rules and regulations adopted by
the secretary of administration, the state board of regents may agree to
reimburse an applicant for the position of chief executive officer of a state
educational institution or an applicant for any position in the office of the
state board of regents for all or part of the applicant's moving expenses
from the applicant's usual place of residence to the applicant's new place
of residence as an inducement to the applicant to accept such position of
employment.

      (2) The amount to be paid for moving expenses shall not exceed the
amount of the actual moving expenses verified by receipts or the amount
of moving expenses for moving 12,000 pounds of household goods, which-
ever is the lesser amount. The applicant shall be required to sign an
agreement that if the applicant leaves the position of employment within
one year from the beginning date of employment, the applicant will re-
imburse the state board of regents the full amount so paid for moving
expenses, and the obligation to repay shall constitute a lien and setoff by
the state against the applicant employee's unpaid wages or salary. The
moving expenses shall be paid from funds available or appropriated for
moving expenses.

      (3) Reimbursement for moving expenses may be made to applicants
for positions in the unclassified service under the Kansas civil service act
at state educational institutions other than chief executive officers in ac-
cordance with this section if such reimbursement is from private funds
provided to the state educational institutions by the endowment associa-
tions or other affiliated corporations of such state educational institutions.

      (c) The provisions of K.S.A. 75-3218, and amendments thereto, and
subsection (a) of K.S.A. 75-3225, shall not apply to state educational in-
stitutions.

      (d) The chief executive officer of any state educational institution, or
any person or persons designated by such officer for the purpose, with
the approval of the state board of regents, may travel to any place or
places in the United States for the purpose of interviewing persons as
prospective members of the faculty of such state educational institution,
and in such case, such state educational institution shall pay the trans-
portation and subsistence expenses of persons making such trips. The
travel and subsistence shall be paid at the same rates and subject to the
same limitations as now provided for state employees for out-of-state
travel. The travel and subsistence shall be paid from funds available or
appropriated for travel and subsistence.

      New Sec.  9. (a) Each retirant who is entitled to receive a retirement
benefit, pension or annuity payment from a retirement system or who is
a local school annuitant shall be entitled to receive a retirant dividend
payment as specified in this section. Such retirant dividend payment shall
be paid in addition to the amount of the annual retirement benefit, pen-
sion or annuity payment to which the retirant is otherwise entitled and
shall be paid in the form of an additional payment which shall be made
on October 1, 2000.

      (b) Each such retirement dividend payment as provided in this sec-
tion shall be payable to the retirant in an amount equal to 50% of the
retirement benefit payment such retirant is entitled to receive on July 1,
2000.

      (c) Each such retirant dividend payment shall be paid by the retire-
ment system to the retirant and the local school annuitant and shall be
payable from the Kansas public employees retirement fund.

      (d) 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, 1999, (B) any person who is a
special member of a retirement system and who retired prior to July 1,
1999, (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 insured 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) ``Insured disability benefit recipient'' means any person receiving
an insured disability benefit under K.S.A. 74-4927, and amendments
thereto, prior to July 1, 1999.

      Sec.  10. On July 11, 2000, K.S.A. 75-5537 is hereby repealed.

      Sec.  11. K.S.A. 20-2605 and 76-727 and K.S.A. 1999 Supp. 74-4920,
74-4927, 74-4927f, 74-4967 and 75-6801 are hereby repealed.

      Sec.  12. This act shall take effect and be in force from and after its
publication in the Kansas register.

Approved April 19, 2000.
 Published in the Kansas Register April 27, 2000.
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