CHAPTER 209
HOUSE Substitute for SENATE BILL No. 322
An Act concerning retirement; relating to the Kansas public
employees retirement system
and systems thereunder; assignment of certain positions under the
Kansas civil service
act; employee bonus awards; certain contracts for professional or
consultant services,
procedures and reports; benefits; employer certification of member
contributions; pur-
chase of service credit; postretirement benefit increase; lump-sum
payments; disability
benefits; payments to beneficiaries; executive director; employer
contributions; amend-
ing K.S.A. 74-4934, 74-4978h and 74-49,102 and K.S.A. 2000 Supp.
13-14a07, 14-10a07,
20-2603, 20-2610a, 74-4902, 74-4904, 74-4908, 74-4911e, 74-4914,
74-4914e, 74-4915,
74-4915b, 74-4915c, 74-4916, 74-4918, 74-4918a, 74-4919, 74-4919b,
74-4920, 74-4921,
74-4922, 74-4925, 74-4927, 74-4927f, 74-4927h, 74-4932, 74-4940,
74-4957, 74-4957a,
74-4958, 74-4958a, 74-4959, 74-4960, 74-4960a, 74-4963, 74-4963a,
74-4964, 74-4964a,
74-4965, 74-4967, 74-4989, 74-4998c, 74-49,128, 75-37,132 and
75-37,135 and repealing
the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2000 Supp.
13-14a07 is hereby amended to read
as follows: 13-14a07. (a) If any officer or member of a police or
fire
department, while in the performance of such officer's or member's
du-
ties, is killed or dies as a result of an injury received, or dies
of any disease
contracted by reason of such officer's or member's occupation as a
po-
liceman or fireman, or dies after having retired and leaves a
spouse, such
spouse, shall receive a monthly pension in an amount equal to 50%
of the
monthly salary of such deceased officer or member, if such spouse
was
lawfully married to such policeman or fireman at the time of such
po-
liceman's or fireman's retirement. 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 termination of benefits
by
reason of such surviving spouse's remarriage but before the
effective date
of this act. In the event there is no surviving spouse, then any
child or
children of the deceased shall receive, in equal shares a monthly
amount
equal to 50% of the monthly salary received at the time of
retirement,
such sums to be paid until such child or children attain the age of
18
years or until such child or children attain 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. 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.
(b) Pursuant to the provisions of
K.S.A. 2000 Supp. 74-49,128, and
amendments thereto, If any officer or member of
such fire or police
department, after having become eligible for retirement as provided
in
K.S.A. 13-14a08 and amendments thereto, is killed while not in the
per-
formance of such officer's or member's official duties, or dies, an
amount
equal to 50% of such officer's or member's monthly salary shall be
paid
to such persons for the periods of time provided in subsection (a)
and
shall be subject to all the limitations provided in subsection
(a).
(c) Payments to the surviving spouse,
child or children under the
provisions of subsection (a) or (b) shall begin no later than
December 31
of the calendar year immediately following the calendar year in
which the
member died.
Sec. 2. K.S.A. 2000 Supp. 14-10a07
is hereby amended to read as
follows: 14-10a07. (a) If any officer or member of a police or fire
de-
partment, while in the performance of such officer's or member's
duties,
is killed or dies as a result of an injury received, or dies of any
disease
contracted by reason of such officer's or member's occupation as a
po-
liceman or fireman, or dies after having retired and leaves a
spouse, such
spouse, shall receive a monthly pension in an amount equal to 50%
of the
monthly salary of such deceased officer or member, if such spouse
was
lawfully married to such policeman or fireman at the time of such
po-
liceman's or fireman's retirement. 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 termination of benefits
by
reason of such surviving spouse's remarriage but before the
effective date
of this act. In the event there is no surviving spouse, then any
child or
children of the deceased, shall receive, in equal shares a monthly
amount
equal to 50% of the monthly salary received at the time of death,
such
sums to be paid until such child or children attain the age of 18
years or
until such child or children attain 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. 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.
(b) Pursuant to the provisions of
K.S.A. 2000 Supp. 74-49,128, and
amendments thereto, If any officer or member of
such fire or police
department, after having become eligible for retirement as provided
in
K.S.A. 14-10a08 and amendments thereto, is killed while not in the
per-
formance of such officer's or member's official duties, or dies, an
amount
equal to 50% of such officer's or member's monthly salary shall be
paid
to such persons for the periods of time provided in subsection (a)
and
shall be subject to all the limitations provided in subsection
(a).
(c) Payments to the surviving spouse,
child or children under the
provisions of subsection (a) or (b) must begin no later than
December 31
of the calendar year immediately following the calendar year in
which the
member died.
Sec. 3. K.S.A. 2000 Supp. 20-2603
is hereby amended to read as
follows: 20-2603. (a) Except as otherwise provided in this section,
each
judge shall contribute 6% of the judge's salary for each payroll
period to
the fund. Commencing with the first payroll period after 20 years
of
service by the judge and after the judge reaches 65 years of age,
and for
each payroll period thereafter, such judge shall contribute 2% of
such
judge's salary to the fund. Commencing with the first payroll
period after
the judge has enough years of service to entitle such judge upon
retire-
ment to the maximum monthly retirement benefit of 70% of the
final
average salary of such judge provided under the provisions of
K.S.A. 20-
2610 and amendments thereto, and for each payroll period
thereafter,
each judge shall contribute 4% of such judge's salary to the fund
or,
commencing on and after the effective date of this act, each such
judge
shall contribute 2% of such judge's salary to the fund.
(b) The director of accounts and reports
shall deduct the amount
each judge is to contribute to the fund on the payroll of each
judge for
each payroll period showing the amount deducted and its credit to
the
fund. Such deductions shall be remitted quarterly, or as the board
may
otherwise provide, to the executive secretary
director of the Kansas public
employees retirement system for credit to the fund to the credit of
the
judge's individual account therein.
(c) Interest on each judge's accumulated
contributions at the rate
determined under subsection (a) of K.S.A. 74-4922 and
amendments
thereto shall be added annually to the judge's individual account
in the
fund.
(d) No member who has retired under the
retirement system for
judges shall make contributions to that system or receive any
service
credit under that system for any service after the date of such
retirement.
(e) (1) Subject to the provisions
of K.S.A. 2000 Supp. 74-49,123 and
amendments thereto, each participating employer, pursuant to the
pro-
visions of section 414(h)(2) of the federal internal revenue code,
shall
pick up and pay the contributions which would otherwise be payable
by
members as prescribed in subsection (a). The contributions so
picked up
shall be treated as employer contributions for purposes of
determining
the amounts of federal income taxes to withhold from the member's
com-
pensation.
(2) Member contributions picked up by the
employer shall be paid
from the same source of funds used for the payment of compensation
to
a member. A deduction shall be made from each member's
compensation
equal to the amount of the member's contributions picked up by
the
employer, provided that such deduction shall not reduce the
member's
compensation for purposes of computing benefits under the
retirement
system for judges.
(3) Member contributions picked up by the
employer shall be re-
mitted quarterly, or as the board may otherwise provide, to the
executive
secretary director for credit to the Kansas
public employees retirement
fund. Such contributions shall be credited to a separate account
within
the member's individual account so that amounts contributed by
the
member may be distinguished from the member contributions picked
up
by the employer. Interest shall be added annually to members'
individual
accounts.
Sec. 4. K.S.A. 2000 Supp. 20-2610a
is hereby amended to read as
follows: 20-2610a. (a) A judge may elect to have such judge's
retirement
annuity paid under one of the options provided in this section in
lieu of
having it paid in the form stated in K.S.A. 20-2610 and
amendments
thereto. Such election shall be made before the date of actual
retirement.
A specific person shall be designated as joint annuitant at the
time of
election of the joint and 1/2 to joint annuitant survivor option,
joint and
survivor option and the joint and 3/4 to joint annuitant survivor
option.
Under no circumstances may an option be changed or canceled nor
the
named joint annuitant changed after the date of actual retirement
of the
judge.
(b) The amount of retirement annuity
payable under an option shall
be based on the age of the judge and, if applicable, the age of the
joint
annuitant, and shall be such amount as to be the actuarial
equivalent of
the retirement annuity otherwise payable under K.S.A. 20-2610
and
amendments thereto as prescribed in subsection (c). 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. In no case shall the total amount of
retirement an-
nuity payable under any option provided in this section be more
than
100% of the retirement annuity which would have been otherwise
payable
if no option had been elected under this section.
(c) The following retirement options,
which are subject to the pro-
visions of K.S.A. 2000 Supp. 74-49,123 and amendments thereto,
are
available:
(1) Joint and 1/2 to joint annuitant
survivor. A reduced retirement
annuity payable to the judge during the judge's lifetime in a
monthly
amount equal to the product of (A) the monthly payment of the
retire-
ment annuity otherwise payable under K.S.A. 20-2610 and
amendments
thereto and (B) the percentage equal to 91% minus .4% for each year
by
which the age of the judge's joint annuitant is less than the
judge's age,
computed to the nearest whole year, or plus .4% for each year by
which
the age of the judge's joint annuitant is more than the judge's
age, com-
puted to the nearest whole year, with 1/2 of that monthly amount
contin-
ued to the judge's joint annuitant during such joint annuitant's
remaining
lifetime, if any, after the death of the judge. In the event that
the desig-
nated joint annuitant under this option predeceases the retired
judge, the
amount of the retirement annuity otherwise payable to the judge
under
this option shall be adjusted automatically to the retirement
annuity which
the judge would have received if no option had been elected under
this
section.
(2) Joint and survivor. A reduced
retirement annuity payable to the
judge during the judge's lifetime in a monthly amount equal to the
prod-
uct of (A) the monthly payment of the retirement annuity otherwise
pay-
able under K.S.A. 20-2610 and amendments thereto and (B) the
per-
centage equal to 83% minus .6% for each year by which the age of
the
judge's joint annuitant is less than the judge's age, computed to
the near-
est whole year, or plus .6% for each year by which the age of the
judge's
joint annuitant is more than the judge's age, computed to the
nearest
whole year, with that monthly amount continued to the joint
annuitant
during the joint annuitant's remaining lifetime, if any, after the
death of
judge. In the event that the designated joint annuitant under this
option
predeceases the retired judge, the amount of the retirement annuity
oth-
erwise payable to the judge under this option shall be adjusted
automat-
ically to the retirement annuity which the judge would have
received if
no option had been elected under this section.
(3) Joint and 3/4 to joint annuitant
survivor. A reduced retirement
annuity payable to the judge during the judge's lifetime in a
monthly
amount equal to the product of (A) the monthly payment of the
retire-
ment annuity otherwise payable under K.S.A. 20-2610 and
amendments
thereto and (B) the percentage equal to 87% minus .5% for each year
by
which the age of the judge's joint annuitant is less than the
judge's age,
computed to the nearest whole year, or plus .5% for each year by
which
the age of the judge's joint annuitant is more than the judge's
age, com-
puted to the nearest whole year, with 3/4 of that monthly amount
contin-
ued to the judge's joint annuitant during such joint annuitant's
remaining
lifetime, if any, after the death of the judge. In the event that
the desig-
nated joint annuitant under this option predeceases the retired
judge, the
amount of the retirement annuity otherwise payable to the judge
under
this option shall be adjusted automatically to the retirement
annuity which
the judge would have received if no option had been elected under
this
section.
(4) Life with 5 years certain. A
reduced retirement annuity payable
to the judge during the judge's lifetime in a monthly amount equal
to
98% of the monthly payment of the retirement annuity otherwise
payable
under K.S.A. 20-2610 and amendments thereto and if the judge
dies
within the five-year certain period, measured from the
commencement
of retirement annuity payments, such monthly payments shall be
contin-
ued to such judge's beneficiary during the balance of the five-year
certain
period.
(5) Life with 10 years certain. A
reduced retirement annuity payable
to the judge during the judge's lifetime in a monthly amount equal
to
95% of the monthly payment of the retirement annuity otherwise
payable
under K.S.A. 20-2610 and amendments thereto and if the judge
dies
within the ten-year certain period, measured from the
commencement
of retirement annuity payments, such monthly payments shall be
contin-
ued to such judge's beneficiary during the balance of the ten-year
certain
period.
(6) Life with 15 years certain. A
reduced retirement annuity payable
to the judge during the judge's lifetime in a monthly amount equal
to
88% of the monthly payment of the retirement annuity otherwise
payable
under K.S.A. 20-2610 and amendments thereto and if the judge
dies
within the fifteen-year certain period, measured from the
commence-
ment of retirement annuity payments, such monthly payments shall
be
continued to such judge's beneficiary during the balance of the
fifteen-
year certain period.
(7) Lump sum payment at
retirement. (A) Pursuant to this option,
the judge must specify a lump sum amount to be paid to the judge
upon
the judge's retirement. The lump sum amount will be based on the
ac-
tuarial present value of the benefit as provided in K.S.A. 20-2610,
and
amendments thereto. The lump sum amount designated by the judge
must be in 10% increments and shall not exceed 1/2 of the actuarial
present
value of the benefit provided in K.S.A. 20-2610, and amendments
thereto.
(B) Pursuant to this option, the judge
must elect to have the remain-
ing actuarial present value paid in a monthly amount under the
provisions
of K.S.A. 20-2610, and amendments thereto, or subsections
(c)(1)
through (c)(6) of this section.
(C) The amount of any retirement
benefit payable pursuant to this
subsection shall remain as provided in this subsection even
in the event
that the designated joint annuitant pursuant to subsections
(c)(1), (c)(2)
or (c)(3) predeceases the retirant. In the
event that the designated joint
annuitant pursuant to subsection (c)(1), (c)(2) or (c)(3), under
this option
predeceases the retirant, the amount of the retirement benefit
otherwise
payable to the retirant under the option shall be adjusted
automatically
to the retirement benefit which the retirant would have received
if no
option had been elected under this section.
(D) The provisions of this subsection
shall be effective on and after
July 1, 2001.
(d) If a judge, who is eligible to
retire, dies without having actually
retired, the judge's spouse, if the spouse is the sole beneficiary
for the
judge's accumulated contributions, may elect to receive benefits as
a joint
annuitant under one of the options provided in this section in lieu
of
receiving the judge's accumulated contributions.
(e) On and after July 1, 1993, if a judge
with 15 or more years of
credited service dies before attaining retirement age, the judge's
spouse,
if the spouse is the sole beneficiary for the judge's accumulated
contri-
butions, may elect to receive benefits under one of the options
provided
in this section in lieu of receiving the judge's accumulated
contributions.
Payments under one of the options provided in this section to the
judge's
spouse if so elected, shall commence on the date that the judge
would
have first attained retirement age.
(f) Benefits payable to a joint annuitant
shall accrue from the first
day of the month following the death of a member or retirant and,
in the
case of the joint and 1/2 to joint annuitant survivor option, the
joint and
survivor option and the joint and 3/4 to joint annuitant survivor
option,
shall end on the last day of the month in which the joint annuitant
dies.
(g) The provisions of the law in effect
on the retirement date of a
judge under the retirement system for judges shall govern the
retirement
annuity payable to the retired judge and any joint annuitant,
except, for
retirement benefits payable after July 1, 1993, for judges who
retired prior
to July 1, 1982, in the event that the designated joint annuitant
under the
option provided in subsection (c)(1), (2) or (3), as applicable,
predeceased
the judge, the amount of the retirement benefit otherwise payable
to the
judge under the option provided in subsection (c)(1), (2) or (3),
as appli-
cable, shall be adjusted automatically to the retirement benefit
which the
judge would have received if no option had been elected under this
sec-
tion.
(h) Upon the death of a joint annuitant
who is receiving a retirement
benefit under the provisions of this section, there shall be paid
to such
joint annuitant's beneficiary an amount equal to the excess, if
any, of the
accumulated contributions of the retired judge over the sum of all
retire-
ment benefit payments made to such retired judge and such joint
annu-
itant. Such joint annuitant shall designate a beneficiary by filing
in the
office of the retirement system such designation at the time of
death of
the retired judge. If there is no named beneficiary of such joint
annuitant
living at the time of death of such joint annuitant, any amount
provided
for by this section shall be paid to, in order of preference as
follows:
(1) The joint annuitant's surviving
spouse;
(2) the joint annuitant's dependent child
or children;
(3) the joint annuitant's dependent
parent or parents;
(4) the joint annuitant's nondependent
child or children;
(5) the joint annuitant's nondependent
parent or parents; or
(6) the estate of the deceased joint
annuitant.
(i) In any event, benefits shall be
adjusted as necessary to satisfy the
incidental death benefits regulations under the federal internal
revenue
code.
Sec. 5. K.S.A. 2000 Supp. 74-4902
is hereby amended to read as
follows: 74-4902. As used in articles 49 and 49a of chapter 74 and
amend-
ments thereto, unless otherwise provided or the context otherwise
re-
quires:
(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 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.
(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 K.S.A. 2000 Supp.
74-
49,123 and amendments 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 employee who is a contributing
member
of the United States civil service retirement system; (B) any
employee
who is a contributing member of the federal employees retirement
sys-
tem; (C) any employee who is a leased employee of a participating
em-
ployer. ``Leased employee'' means the same as provided in section
414 of
the federal internal revenue code; and (D) any employee or class of
em-
ployees specifically exempted by law. After June 30, 1975, no
person who
is otherwise eligible for membership in the Kansas public employees
re-
tirement system shall be barred from such membership by reason
of
coverage by, eligibility for or future eligibility 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
em-
ployees retirement system for any period of service for which
benefits
accrue or are granted under a retirement annuity plan under the
provi-
sions 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 period of service for
which
any benefit accrues or is granted under any such retirement plan.
Em-
ployee 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
com-
missioner 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 director'' 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; any former employee
who
has made the required contributions to the system and has not
received
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 States public
health
service, which service is immediately preceded by a period of
employ-
ment as an employee or by the entering into of an employment
contract
with a participating employer and is followed by return to
employment
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 pe-
riod within which the employee must return to employment with a
par-
ticipating 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 the entry date for which credit is granted a member 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. If
there is no surviving spouse, the last warrant shall be payable
to the
designated beneficiary;
(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 K.S.A. 2000 Supp. 74-49,123 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
com-
puted 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. 6. K.S.A. 2000 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 director at such
executive secretary's director'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, an employee of the board or any other person
designated
by the board to serve as such presiding officer. Any such
appointment
shall apply to a particular hearing or to a set or class of
hearings as spec-
ified by the board in making such appointment. The board shall
review
an initial order resulting from a hearing under this section. Any
member
of the board who serves as a presiding officer shall be reimbursed
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. 7. K.S.A. 2000 Supp. 74-4908
is hereby amended to read as
follows: 74-4908. (1) The board shall appoint an executive
secretary di-
rector and shall establish the compensation therefor.
Subject to the di-
rection of the board, the executive secretary
director shall be the man-
aging 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 director shall be
in the unclassified service under
the Kansas civil service act.
(2) The executive
secretary director shall recommend to the
board
the administrative organization, the number and qualifications of
em-
ployees necessary to carry out the intent of this act and the
directions of
the board. Upon approval of the board, the executive
secretary director
is authorized to employ 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. 2000 Supp. 74-4908a and
amendments
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 director, an
investment officer, an investment analyst, a real estate manager, a
direct
placement manager, a chief fiscal officer, a member services
officer, an
attorney, an assistant investment officer
and, an information resource of-
ficer and an investment operations analyst to advise and
assist the board
in the performance of powers, duties and functions relating to the
man-
agement 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 Kansas civil service act. The
compen-
sation of such appointed officers and employees shall be
established by
the board.
(7) The board may establish a program
for the paying of bonus
awards to unclassified officers and employees pursuant to
procedures es-
tablished by the board.
Sec. 8. K.S.A. 2000 Supp. 74-4911e
is hereby amended to read as
follows: 74-4911e. (a) Each person who is an elected official on
and after
January 1, 1985, and who is a member of the Kansas public
employees
retirement system, may elect to continue to participate in the
Kansas
public employees retirement system under the provisions of this act
after
the date such person's service as an elected official terminates
unless such
person immediately becomes an employee of another participating
em-
ployer. Such person's election is valid only if such person files
notice of
such election in the office of the executive
secretary director of the Kansas
public employees retirement system, in a form acceptable to the
system,
within 30 days of the termination of such person's service as an
elected
official.
(b) For the purposes of contributions to
and benefits under the Kan-
sas public employees retirement system, compensation of such
members
shall be a monthly amount equal to the greater of (1) the
compensation
to which the elected official was entitled for services as an
elected official
during the period January 15 to February 14, inclusive, of the most
recent
year, or (2) the monthly amount of such person's compensation at
the
time that such person's service as an elected official terminates.
The em-
ployer rate of contribution for the state of Kansas and employee
rate of
contribution shall be applied to such amounts monthly. Such person
shall
remit the required employer and employee contributions to the
system
quarterly in advance with a report as may be required by the
system.
(c) Any election by such person under
subsection (a) shall remain in
effect until revoked in writing and received by the system or such
person
becomes an employee of another participating employer or upon
failure
of such person to remit to the system the employer and employee
con-
tributions required under subsection (b).
(d) This act or acts amendatory thereof
and supplemental thereto
shall become a part of the Kansas public employees retirement act
as
defined in subsection (2) of K.S.A. 74-4902 and amendments thereto
and
shall be governed thereby in all respects, except if words and
phrases
used in this act appear to have a different meaning, the provisions
of this
act shall prevail.
(e) The provisions of subsection (2) of
K.S.A. 74-4916 and amend-
ments thereto are not applicable to any person making an election
under
subsection (a).
(f) No election shall be made as provided
in subsection (a) after June
30, 1998.
Sec. 9. K.S.A. 2000 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, 1993, age 62 with the
com-
pletion of 10 years of credited service or the first day of the
month co-
inciding 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,
ap-
pointed 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
ter-
minated 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 in an amount equal to $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
compen-
sation paid to the retirant is equal to or exceeds any limitation
provided
by this section. Any retirant employed by a participating employer
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 director of the system,
the secretary of revenue shall
provide such information as may be needed by the executive
secretary
director 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 or appointees of the legislature. The
provisions of this
subsection shall not apply to members of the legislature prior to
January
8, 2000. The provisions of this subsection shall not apply to any
other
elected officials prior to the term of office of such elected
official which
commences on or after July 1, 2000. The provisions of this
subsection
shall apply to any other elected official on and after the term of
office of
such other elected official which commences on or after July 1,
2000.
Except as otherwise provided, commencing January 8, 2001, the
provi-
sions of this subsection shall apply to members of the legislature.
For
determination of the amount of compensation paid pursuant to this
sub-
section, for members of the legislature, compensation shall include
any
amount paid as provided pursuant to subsections (a), (b), (c) and
(d) of
K.S.A. 46-137a, and amendments thereto, or pursuant to K.S.A.
46-137b,
and amendments thereto. Notwithstanding any provision of law to
the
contrary, when a member of the legislature is paid an amount of
com-
pensation of $15,000 or more in any one calendar year, the member
may
continue to receive any amount provided in subsections (b) and (d)
of
K.S.A. 46-137a, and amendments thereto, and still be entitled to
receive
such member's retirement benefit.
(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. 10. K.S.A. 2000 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
director 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
employee's authorized representative in the office of the executive
sec-
retary director 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 sub-
section (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
average 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
payable 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 director 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
director 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
director 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.
(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
average 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
payable 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. 11. K.S.A. 2000 Supp. 74-4915
is hereby amended to read as
follows: 74-4915. (1) Any member who retires on or after such
member's
normal retirement date shall be entitled to receive an annual
retirement
benefit equal to the sum obtained by adding an amount for
participating
service and an amount for prior service determined as provided in
this
section. The amount for prior service shall be equal to 1% of the
mem-
ber's prior service annual salary multiplied by the number of years
of
prior service entitled to credit as provided in K.S.A. 74-4913 and
amend-
ments thereto, except that for members retiring on or after July 1,
1981,
who were last employed by a participating employer which had
affiliated
with the system under K.S.A. 74-4910, 74-4912, 74-4929 or 74-4991
and
amendments thereto, and for the period commencing January 1,
1986,
for members retiring before July 1, 1981, who were last employed by
a
participating employer which had affiliated with the system under
K.S.A.
74-4910, 74-4912, 74-4929 or 74-4991 and amendments thereto,
except
that any increase in benefits under this section shall be reduced
by any
postretirement benefit adjustments received by such member prior
to
July 2, 1985, the amount for prior service shall be calculated
using final
average salary in lieu of prior service annual salary and, in the
case of any
such member who became a member under subsection (3) of K.S.A.
74-
4925 and amendments thereto and for whom a final average salary
cannot
be otherwise determined, such member's final average salary shall
be
based on all service for which such member received assistance in a
plan
under subsection (2) of K.S.A. 74-4925 and amendments thereto as
cer-
tified by such employer upon request of the board. For any member
who
retires on or after July 1, 1993, the amount for participating
service shall
be equal to the total of 1.75% of the member's final average salary
mul-
tiplied by the number of years of participating service.
(2) (A) Any member who retires on
or after July 1, 1993, but before
the normal retirement date and has attained age 60 but has not
attained
age 62 with the completion of 10 years of credited service, shall
receive
an annual retirement benefit equal to the annual retirement benefit
pay-
able had the member retired on the normal retirement date but
based
upon the member's final average salary and years of participating
and
prior service credited to the date of actual retirement reduced by
an
amount equal to the product of (i) such annual retirement benefit
payable
had the member retired on the normal retirement date, multiplied by
(ii)
the product of .2% multiplied by the number of months' difference,
to
the nearest whole month, between the member's attained age at the
time
of retirement and age 62.
(B) Any member who retires on or after
July 1, 1993, but before the
normal retirement date and has attained age 55 but has not attained
age
60 with the completion of 10 years of credited service, shall
receive an
annual retirement benefit equal to the annual retirement benefit
payable
had the member retired on the normal retirement date but based
upon
the member's final average salary and years of participating and
prior
service credited to the date of actual retirement reduced by an
amount
equal to the total of: (i) (a) The product of such annual
retirement benefit
payable had the member retired on the normal retirement date,
multi-
plied by (b) the product of .6% multiplied by the number of
months'
difference, to the nearest whole month, between the member's
attained
age at the time of retirement and age 60; and
(ii) on and after July 1, 1993, the
product of such annual retirement
benefit payable had the member retired on the normal retirement
date,
multiplied by 4.8%.
(3) Upon death of a retirant, there shall
be paid to such retirant's
beneficiary an amount equal to the excess, if any, of such
retirant's ac-
cumulated contributions over the sum of all retirement benefit
payments
made.
(4) Such annual retirement benefits shall
be paid in equal monthly
installments except, that the board may provide for the payment of
re-
tirement benefits which total less than $240 a year on other than
a
monthly basis.
(5) In the event that an application in
such form as may be prescribed
by the board for any amount due under the provisions of this act,
is not
filed with the office of the retirement system by the person
entitled to
same within five years of the date such amount became due and
payable,
an amount equal to same shall be transferred to the retirement
benefit
accumulation reserve and such amount shall no longer be due and
pay-
able, except that if any such person shall present evidence
satisfactory to
the board that such person's failure to file such application
within that
time period was due to lack of knowledge or incapacity on such
person's
part, the amount equal to the amount originally due shall be
transferred
from the retirement benefit accumulation reserve to the reserve or
re-
serves from which such transfer was initially made and the amount
orig-
inally due shall be paid to such person.
(6) The participating employer, when
an employee files an application
for retirement, shall certify to the system all member
contributions of such
employee which have not been reported previously. In the event
the
amount certified results in an overpayment of retirement
benefits, the
employer shall be held responsible for the contribution amount
previously
certified from the time of commencement of the overpayment of
retirement
benefits until the time that such overpayment is discovered by
the system.
At the time that such overpayment of retirement benefits is
discovered by
the system, the system shall adjust the amount of retirement
benefits paid
to the employee to the correct amount based on the participating
em-
ployer's certification of member contributions which had not
been pre-
viously reported. The participating employer of the employee who
has
had such member's retirement benefits adjusted as provided in
this sub-
section shall notify such employee of such overpayment and such
adjust-
ment of retirement benefits. If the contributions previously
certified are
lower than the actual amount reported, the employer shall be
responsible
for remitting the correct amount and the member's monthly
benefit shall
be recalculated based on the amount reported by the employer.
When an
employee in school employment files such an application, the
participating
employer responsible for any such amounts as provided in this
subsection
shall be the employee's eligible employer as specified in
subsection (1), (2)
or (3) of K.S.A. 74-4931, and amendments thereto, and shall not
be the
state of Kansas. The provisions of law in effect on the
retirement date of
a member under the system shall govern the retirement benefit
payable
to the retirant, any joint annuitant and any beneficiary.
Sec. 12. K.S.A. 2000 Supp. 74-4915b
is hereby amended to read as
follows: 74-4915b. (a) Notwithstanding any provision of law to the
con-
trary, any member who is a member of the legislature who is also
em-
ployed by another participating employer of the Kansas public
employees
retirement system other than the legislature and is an eligible
employee
as defined in K.S.A. 74-4902, and amendments thereto, may retire
from
service from such other participating employer and may continue to
serve
as a member of the legislature, except that, commencing January 8,
2001,
such member of the legislature shall not receive any retirement
benefit
for any month for which such member of the legislature serves
when
compensation as provided in subsection (e) is paid in an amount
equal to
$15,000 or more in any one such calendar year. Such member's
retire-
ment benefit shall be based on the final average salary of such
member
for service prior to service as a member of the legislature.
(b) No such member who is a member of the
legislature who retires
as provided in subsection (a) and who continues to serve as a
member of
the legislature shall accrue any additional service credit for such
service
as a member of the legislature or be entitled to any benefit
provided in
K.S.A. 74-4916 or 74-4927, and amendments thereto.
(c) When such member who is a member of
the legislature retires as
a member of the legislature, such member's final average salary
shall be
recalculated to include legislative compensation, if such inclusion
of such
compensation increases such member's final average salary, of the
mem-
ber up to the time of retirement from the participating employer
other
than the legislature as provided in subsection (a).
(d) No such member who is a member of the
legislature shall accrue
any additional retirement benefits for the period of time between
the
date the member retired from the participating employer other than
the
legislature and the date such member retires as a member of the
legis-
lature.
(e) 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 in subsection (a). Upon request of the
executive
secretary director of the system, the
secretary of revenue shall provide
such information as may be needed by the executive
secretary director
to carry out the provisions of this section. For determination of
the
amount of legislative compensation, as provided in subsection (a)
and this
subsection, for members of the legislature, compensation shall
include
any amount paid as provided pursuant to subsections (a), (b), (c)
and (d)
of K.S.A. 46-137a, and amendments thereto, or pursuant to K.S.A.
46-
137b, and amendments thereto. Notwithstanding any provision of law
to
the contrary, when a member of the legislature is paid an amount
of
compensation of $15,000 or more in any one calendar year, the
member
may continue to receive any amount provided in subsections (b) and
(d)
of K.S.A. 46-137a, and amendments thereto, and still be entitled to
re-
ceive such member's retirement benefit.
(f) The provisions of this section are
intended to further the public
policy of encouraging persons to serve in elective public office by
per-
mitting a member of the system, who is a member through
employment
with a participating employer in a nonelected position and who
holds an
elected office as a member of the legislature and who is also a
member
of the system for such elected office, to retire under the system
from
such nonelected employment and to continue serving in such
elected
public office.
(g) The words and phrases used in this
section have the meanings
respectively ascribed thereto by K.S.A. 74-4902, and amendments
thereto, unless a different meaning is plainly required by the
context.
(h) The provisions of this section shall
be effective on and after July
1, 2000.
Sec. 13. K.S.A. 2000 Supp. 74-4915c
is hereby amended to read as
follows: 74-4915c. (a) Notwithstanding any provision of law to the
con-
trary, any member who is an elected local official of a
municipality who
is also employed by another participating employer of the Kansas
public
employees retirement system other than the municipality and is an
eli-
gible employee as defined in K.S.A. 74-4902, and amendments
thereto,
may retire from service from such other participating employer and
may
continue to serve as an elected local official, except that such
local official
shall not receive any retirement benefit for any month for which
such
local official serves in such office when compensation is paid in
an amount
equal to $15,000 or more in any one such calendar year. The
participating
employer shall report to the system within 30 days of when the
compen-
sation paid to the retirant is equal to or exceeds any limitation
provided
in this subsection. Upon request of the executive
secretary director of the
system, the secretary of revenue shall provide such information as
may
be needed by the executive secretary
director to carry out the provisions
of this section.
(b) No such member who is an elected
local official who retires as
provided in subsection (a) and who continues to serve as an elected
local
official shall accrue any additional service credit for such
service as an
elected local official or be entitled to any benefit provided in
K.S.A. 74-
4916 or 74-4927, and amendments thereto.
(c) The provisions of this section are
intended to further the public
policy of encouraging persons to serve in elective public office by
per-
mitting a member of the system, who is a member through
employment
with a participating employer in a nonelected position and who
holds an
elected office as an elected local official of a municipality and
who is also
a member of the system for such elected office, to retire under the
system
from such nonelected employment and to continue serving in such
elected public office.
(d) The words and phrases used in this
section have the meanings
respectively ascribed thereto by K.S.A. 74-4902, and amendments
thereto, unless a different meaning is plainly required by the
context.
Sec. 14. K.S.A. 2000 Supp. 74-4916
is hereby amended to read as
follows: 74-4916. (1) Upon the death of a member before retirement,
the
member's accumulated contributions shall be paid to the member's
ben-
eficiary.
(2) (a) In the event that a member
dies before retirement as a result
of an accident arising out of and in the course of the member's
actual
performance of duty in the employ of a participating employer
inde-
pendent of all other causes and not as a result of a willfully
negligent or
intentional act of the member, an accidental death benefit shall be
pay-
able if: (A) A report of the accident, in a form acceptable to the
board, is
filed in the office of the executive secretary
director of the board within
60 days after the date of the accident causing such death and an
appli-
cation for such benefit, in such form and manner as the board shall
pre-
scribe, is filed in the office of the executive
secretary director of the board
within two years of the date of the accident, but the board may
waive
such time limits for a reasonable period if in the judgment of the
board
the failure to meet these limits was due to lack of knowledge or
incapacity;
and (B) the board finds from such evidence as it may require, to
be
submitted in such form and manner as it shall prescribe, that the
natural
and proximate cause of death was the result of an accident arising
out of
and in the course of the member's employment with a participating
em-
ployer independent of all other causes at a definite time and
place. Such
accidental death benefit shall be a lump-sum amount of $50,000 and
an
annual amount of 1/2 of the member's final average salary which
shall
accrue from the first day of the month following the date of death
and
which shall be payable in monthly installments or as the board may
direct,
but, after June 30, 1982, in no case shall the accidental death
benefit be
less than $100 per month. The accidental death benefit payments
shall
be paid to the surviving spouse of such deceased member, such
payments
to continue so long as such surviving spouse lives or if there is
no surviving
spouse, or in the case the spouse dies before the youngest child of
such
deceased member attains age 18 or before the youngest child of
such
deceased member attains age 23 years, if such child is a full-time
student
as provided in K.S.A. 74-49,117 and amendments thereto or if there
are
one or more children of the member who are totally disabled and
de-
pendent on the member or spouse, then to the child or children of
such
member under age 18 or under age 23, if such child or children are
full-
time students as provided in K.S.A. 74-49,117 and amendments
thereto
and to the child or children of the member who are totally disabled
and
dependent on the member or spouse, divided in such manner as the
board
in its discretion shall determine, to continue until the youngest
surviving
child dies or attains age 18 or attains age 23 if such child is a
full-time
student as provided in K.S.A. 79-49,117 and amendments thereto or,
in
the case of the child or children who are totally disabled and
dependent
on the member or spouse, until death or until no longer totally
disabled,
or if there is no surviving spouse or child eligible for accidental
death
benefits under this subsection (2) at the time of the member's
death, then
to the parent or parents of such member who are dependent on
such
member, to continue until the last such parent dies. All payments
due
under this subsection (2) to a minor shall be made to a legally
appointed
conservator of such minor or totally disabled child as provided in
subsec-
tion (7) of K.S.A. 74-4902 and amendments thereto. 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 ben-
efits 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.
(b) In construction of this section of
the act there shall be no pre-
sumption that the death of the member was the result of an accident
nor
shall there be a liberal interpretation of the law or evidence in
favor of
the person claiming under this subsection (2). In the event of the
death
of a member resulting from a heart, circulatory or respiratory
condition
there must be clear and precise evidence that death was the result
of an
accident independent of all other causes which arose out of and in
the
course of the member's actual performance of duties in the employ
of a
participating employer.
(c) The annual benefit under this
subsection (2) shall be reduced by
any workers compensation benefit payable. If the workers
compensation
benefit is paid in a lump-sum, the amount of such reduction shall
be
calculated on a monthly basis over the period of time for which
workers
compensation benefits would have been payable had such lump-sum
not
been paid. For any recipient already in receipt of such benefits on
the
effective date of this act, no change in the original reduction for
workers
compensation benefits shall be applicable to benefits paid prior to
July 1,
1994. In the event that a member should die as a result of an
accident as
described in this subsection (2), all elections or options
previously made
by the deceased member shall become void and of no effect
whatsoever
and the retirement system shall be liable only for the accidental
death
benefit, refund of accumulated contributions as described in
subsection
(1) and any insured death benefit that may be due. The benefit
payable
under this subsection (2) shall be known and referred to as the
``accidental
death benefit.''
(3) (a) Upon the application of a
member, or the member's appoint-
ing authority acting for the member, a member who is in the employ
of
a participating employer and becomes totally and permanently
disabled
for duty in the employ of a participating employer, by reason of an
acci-
dent which occurred prior to July 1, 1975, may be retired by the
board
if, (A) the board finds the total and permanent disability to be
the natural
and proximate result of an accident causing personal injury or
disease
independent of all other causes and arising out of and in the
course of
the member's actual performance of duties as an employee of a
partici-
pating employer; and (B) a report of the accident, in a form
acceptable
to the board is filed in the office of the executive
secretary director of
the board within 200 days after the date of the accident causing
such
injury; and (C) such application for retirement under this
provision, in
such form and manner as shall be prescribed by the board, is filed
in the
office of the executive secretary director
of the board within two years of
the date of the accident; and (D) after a medical examination of
the
member has been made by or under the direction of a medical
physician
or physicians or any other practitioner holding a valid license to
practice
a branch of the healing arts issued by the state board of healing
arts
designated by the board and the medical physician or physicians or
any
other practitioner holding a valid license to practice a branch of
the heal-
ing arts issued by the state board of healing arts report in
writing to the
board that the member is physically or mentally totally disabled
for duty
in the employ of a participating employer and that such disability
will
probably be permanent; and (E) the board finds that the member
became
permanently and totally disabled on a date certain based on the
evidence
furnished and the professional guidance obtained and that such
disability
was not the result of a willfully negligent or intentional act of
the member.
If the board shall so retire the applicant, the member shall
receive an-
nually an accidental total disability benefit equal to 1/2 of the
member's
final average salary which shall accrue from the first day of the
month
following the date of such accidental total and permanent
disability as
found by the board payable in monthly installments or as the board
may
direct.
(b) In construction of this subsection
(3) there shall be no presump-
tion that the disability of the member was the result of an
accident nor
shall there be a liberal interpretation of the law or evidence in
favor of
the member claiming under this subsection (3). In the event of the
dis-
ability of a member resulting from a heart, circulatory or
respiratory con-
dition there must be clear and precise evidence that disability was
the
result of an accident independent of all other causes which arose
out of
and in the course of the member's actual performance of duties in
the
employ of a participating employer.
(c) A member will continue to receive
such accidental total disability
benefit so long as the member is wholly and continuously disabled
by
such injury and prevented thereby from engaging in any gainful
occu-
pation or employment for which the member is reasonably qualified
by
reason of education, training or experience. The accidental loss of
both
hands by actual severance through or above the wrist joint, or the
acci-
dental loss of both feet by actual severance through or above the
ankle
joint or the entire and irrecoverable accidental loss of sight of
both eyes,
or such severance of one hand and one foot, and such severance of
one
hand or one foot and such loss of sight of one eye, shall be
deemed
accidental total and permanent disability and accidental total
disability
benefits shall be paid so long as the member lives.
(d) Any retirant retired by reason of
such accidental total and per-
manent disability who has been receiving benefits under the
provisions
of this subsection (3) 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 has reasonable grounds to question
whether
the retirant remains totally and permanently disabled, a further
medical
examination or examinations may be required. Refusal or neglect to
sub-
mit to examination shall be sufficient cause for suspending or
discontin-
uing the accidental total disability benefit. If the refusal or
neglect con-
tinues for a period of one year, all of the member's rights with
respect to
such accidental total disability benefit may be revoked by the
board.
(e) In the event that a retirant who is
receiving an accidental total
disability benefit dies within five years after the date of the
retirant's
retirement, an accidental death benefit shall then be payable as
provided
in subsection (2) of this section.
(f) A member who retires under the
provisions of this subsection (3)
shall receive such benefits as provided in this subsection (3) in
lieu of all
other retirement benefits provided under the retirement system
except
that no member shall be entitled to receive any payments under
this
subsection (3) for a period for which insured disability benefits
are re-
ceived.
(g) The value, as determined by the board
upon recommendation of
the actuary, of any workmen's compensation benefits paid or payable
to
the recipient of an accidental total disability benefit shall be
deducted
from the amount payable under this section.
(h) The benefit payable under subsection
(3) of this section shall be
known and referred to as ``accidental total disability
benefit.''
(4) The payment of benefits as provided
in this section is subject to
the provisions of K.S.A. 2000 Supp. 74-49,123 and amendments
thereto.
Sec. 15. K.S.A. 2000 Supp. 74-4918
is hereby amended to read as
follows: 74-4918. (1) A member may elect to have such member's
retire-
ment benefit paid under one of the options provided in this section
in
lieu of having it paid in the form stated in K.S.A. 74-4915 and
amend-
ments thereto. Such election must be made before the date of
actual
retirement. A specific person must be designated as joint annuitant
at the
time of election of the joint and 1/2 to joint annuitant survivor
option, the
joint and survivor option and the joint and 3/4 to joint annuitant
survivor
option. Under no circumstances may an option be changed or
canceled
nor the named joint annuitant changed after the date of actual
retirement
of the member.
(2) The amount of retirement benefit
payable under an option shall
be based on the age of the member and, if applicable, the age of
the joint
annuitant, and shall be such amount as to be the actuarial
equivalent of
the retirement benefit otherwise payable under K.S.A. 74-4915
and
amendments thereto, as prescribed in subsection (3). In no case
shall the
total amount of retirement benefit paid under any option provided
in this
section be more than 100% of the retirement benefit which would
have
been otherwise payable if no option had been elected under this
section.
(3) The following retirement options,
which are subject to the pro-
visions of K.S.A. 2000 Supp. 74-49,123 and amendments thereto,
are
available:
(A) Joint and 1/2 to joint annuitant
survivor. A reduced retirement
benefit is payable to the retirant during the retirant's lifetime
in a monthly
amount equal to the product of (i) the monthly payment of the
retirement
benefit otherwise payable under K.S.A. 74-4915 and amendments
thereto
and (ii) the percentage equal to 91% minus .4% for each year by
which
the age of the retirant's joint annuitant is less than the
retirant's age,
computed to the nearest whole year, or plus .4% for each year by
which
the age of the retirant's joint annuitant is more than the
retirant's age,
computed to the nearest whole year, with 1/2 of that monthly
amount
continued to the retirant's joint annuitant during such joint
annuitant's
remaining lifetime, if any, after the death of the retirant. In the
event that
the designated joint annuitant under this option predeceases the
retirant,
the amount of the retirement benefit otherwise payable to the
retirant
under this option shall be adjusted automatically to the retirement
benefit
which the retirant would have received if no option had been
elected
under this section.
(B) Joint and survivor. A reduced
retirement benefit is payable to
the retirant during the retirant's lifetime in a monthly amount
equal to
the product of (i) the monthly payment of the retirement benefit
other-
wise payable under K.S.A. 74-4915 and amendments thereto and (ii)
the
percentage equal to 83% minus .6% for each year by which the age
of
the retirant's joint annuitant is less than the retirant's age,
computed to
the nearest whole year, or plus .6% for each year by which the age
of the
retirant's joint annuitant is more than the retirant's age,
computed to the
nearest whole year, with that amount continued to the joint
annuitant
during the joint annuitant's remaining lifetime, if any, after the
death of
the retirant. In the event that the designated joint annuitant
under this
option predeceases the retirant, the amount of the retirement
benefit
otherwise payable to the retirant under this option shall be
adjusted au-
tomatically to the retirement benefit which the retirant would have
re-
ceived if no option had been elected under this section.
(C) Joint and 3/4 to joint annuitant
survivor. A reduced retirement
benefit is payable to the retirant during the retirant's lifetime
in a monthly
amount equal to the product of (i) the monthly payment of the
retirement
benefit otherwise payable under K.S.A. 74-4915 and amendments
thereto
and (ii) the percentage equal to 87% minus .5% for each year by
which
the age of the retirant's joint annuitant is less than the
retirant's age,
computed to the nearest whole year, or plus .5% for each year by
which
the age of the retirant's joint annuitant is more than the
retirant's age,
computed to the nearest whole year, with 3/4 of that monthly
amount
continued to the retirant's joint annuitant during such joint
annuitant's
remaining lifetime, if any, after the death of the retirant. In the
event that
the designated joint annuitant under this option predeceases the
retirant,
the amount of the retirement benefit otherwise payable to the
retirant
under this option shall be adjusted automatically to the retirement
benefit
which the retirant would have received if no option had been
elected
under this section.
(D) Life with 5 years certain. A
reduced retirement benefit is payable
to the retirant during the retirant's lifetime in a monthly amount
equal
to 98% of the monthly payment of the retirement benefit otherwise
pay-
able under K.S.A. 74-4915 and amendments thereto and if the
retirant
dies within the five-year certain period, measured from the
commence-
ment of retirement benefit payments, such payments shall be
continued
to the retirant's beneficiary during the balance of the five-year
certain
period.
(E) Life with 10 years certain. A
reduced retirement benefit is pay-
able to the retirant during the retirant's lifetime in a monthly
amount
equal to 95% of the monthly payment of the retirement benefit
otherwise
payable under K.S.A. 74-4915 and amendments thereto and if the
retirant
dies within the ten-year certain period, measured from the
commence-
ment of retirement benefit payments, such payments shall be
continued
to the retirant's beneficiary during the balance of the ten-year
certain
period.
(F) Life with 15 years certain. A
reduced retirement benefit is pay-
able to the retirant during the retirant's lifetime in a monthly
amount
equal to 88% of the monthly payment of the retirement benefit
otherwise
payable under K.S.A. 74-4915 and amendments thereto and if the
retirant
dies within the fifteen-year certain period, measured from the
com-
mencement of retirement benefit payments, such payments shall be
con-
tinued to the retirant's beneficiary during the balance of the
fifteen-year
certain period.
(G) Lump sum payment at
retirement. (i) Pursuant to this option, the
member must specify a lump sum amount to be paid to the member
upon the member's retirement. The lump sum amount will be based
on
the actuarial present value of the benefit as provided in K.S.A.
74-4915,
and amendments thereto. The lump sum amount designated by the
mem-
ber must be in 10% increments and shall not exceed 1/2 of the
actuarial
present value of the benefit provided in K.S.A. 74-4915, and
amendments
thereto.
(ii) Pursuant to this option, the member
must elect to have the re-
maining actuarial present value paid in a monthly amount under the
pro-
visions of K.S.A. 74-4915, and amendments thereto, or subsections
(3)(A)
through (3)(F) of this section.
(iii) The amount of any
retirement benefit payable pursuant to this
subsection shall remain as provided in this subsection even
in the event
that the designated joint annuitant pursuant to subsection
(3)(A), (3)(B)
or (3)(C) predeceases the retirant. In the
event that the designated joint
annuitant pursuant to subsection (3)(A), (3)(B) or (3)(C) under
this option
predeceases the retirant, the amount of the retirement benefit
otherwise
payable to the retirant under this option shall be adjusted
automatically
to the retirement benefit which the retirant would have received
if no
option had been elected under this section.
(iv) The provisions of this subsection
shall be effective on and after
July 1, 2001.
(4) If a member, who is eligible to
retire in accordance with the pro-
visions of K.S.A. 74-4914 and amendments thereto, dies without
having
actually retired, the member's spouse, if the spouse is the sole
beneficiary
for the member's accumulated contributions, may elect to receive
ben-
efits under one of the options provided in this section in lieu of
receiving
the member's accumulated contributions.
(5) The benefits of subsection (4) shall
be available in the case of
death within the first six months after the entry date of the
member's
participating employer.
(6) On and after January 1, 1991, if a
member with 15 or more years
of credited service dies before attaining retirement age, the
member's
spouse, if the spouse is the sole beneficiary for the member's
accumulated
contributions, may elect to receive benefits under one of the
options
provided in this section in lieu of receiving the member's
accumulated
contributions. Payments under one of the options provided in this
section
to the member's spouse if so elected, shall commence on the date
that
the member would have attained retirement age.
(7) Benefits payable to a joint annuitant
shall accrue from the first
day of the month following the death of a member or retirant and,
in the
case of the joint and 1/2 to joint annuitant survivor option, the
joint and
survivor option and the joint and 3/4 to joint annuitant survivor
option,
shall end on the last day of the month in which the joint annuitant
dies.
(8) The provisions of the law in effect
on the retirement date of a
member under the system shall govern the retirement benefit payable
to
the retirant and any joint annuitant, except, for retirement
benefits pay-
able after July 1, 1993, for retirants who retired prior to July 1,
1982, in
the event that the designated joint annuitant under the option
provided
in subsection (3)(A), (B) or (C), as applicable, predeceased the
retirant,
the amount of the retirement benefit otherwise payable to the
retirant
under the option provided in subsection (3)(A), (B) or (C), as
applicable,
shall be adjusted automatically to the retirement benefit which the
retir-
ant would have received if no option had been elected under this
section.
(9) Upon the death of a joint annuitant
who is receiving a retirement
benefit under the provisions of this section, there shall be paid
to such
joint annuitant's beneficiary an amount equal to the excess, if
any, of the
accumulated contributions of the retirant over the sum of all
retirement
benefit payments made to such retirant and such joint annuitant.
Such
joint annuitant shall designate a beneficiary by filing in the
office of the
retirement system such designation at the time of death of the
retirant.
If there is no named beneficiary of such joint annuitant living at
the time
of death of such joint annuitant, any amount provided for by this
section
shall be paid to, in order of preference as follows:
(A) The joint annuitant's surviving
spouse;
(B) the joint annuitant's dependent child
or children;
(C) the joint annuitant's dependent
parent or parents;
(D) the joint annuitant's nondependent
child or children;
(E) the joint annuitant's nondependent
parent or parents; or
(F) the estate of the deceased joint
annuitant.
Sec. 16. K.S.A. 2000 Supp. 74-4918a
is hereby amended to read as
follows: 74-4918a. (a) If the member who is married at the time of
re-
tirement selects or will receive a retirement benefit or annuity
which
would provide to such member's spouse upon the member's death
no
monthly payments or payment which is less than the payment that
the
spouse would receive as a joint annuitant under the joint and 1/2
to joint
annuitant survivor option, as provided in K.S.A. 20-2610a, 74-4918,
74-
4964 or 74-4964a and amendments thereto, or selects the lump sum
pay-
ment at retirement benefit option as provided in subsection
(3)(G) of
K.S.A. 74-4918, and amendments thereto, at the time of such
selection of
a retirement benefit or annuity the member shall submit a notarized
state-
ment of the marital status of the member and, if the member is
currently
married, a statement of the spouse's consent or objection to the
member's
selected retirement benefit or annuity under the provisions of this
section
signed by the spouse and notarized in such form and manner as
provided
by the system.
(b) (i) If the spouse of the member
does not consent to the member's
selection of a retirement benefit or annuity under the provisions
of this
section before the date of actual retirement, the system shall:
(A) Notify the spouse that the spouse has
90 days to consent or have
the member change such member's selected retirement benefit or
an-
nuity; and
(B) pay the retirement benefit or annuity
at the amount as provided
by the joint and 1/2 to joint annuitant survivor option until the
spouse
consents or for 90 days, whichever is less.
(ii) Upon consent of the spouse or at the
end of 90 days, the retire-
ment benefit or annuity must be recalculated and paid as provided
by the
terms of the member's original selected retirement benefit or
annuity
retroactively to the date on which the retirement became
effective.
(iii) The system is not liable for any
damages resulting from false
designation of marital status by a member or retirant.
(c) For purposes of this section,
``retirement system'' or ``system''
means the Kansas public employees retirement system, the Kansas
police
and firemen's retirement system and the retirement system for
judges.
(d) The provisions of this section shall
take effect on and after July
1, 1994.
Sec. 17. K.S.A. 2000 Supp. 74-4919
is hereby amended to read as
follows: 74-4919. (1) Each participating employer, beginning with
the first
payroll for services performed after the entry date, shall deduct
from the
compensation of each member 4% of such member's compensation as
employee contributions. Such deductions shall be remitted
quarterly, or
as the board may otherwise provide, to the executive
secretary director
for deposit in the Kansas public employees retirement fund. Such
de-
ductions shall be credited to the members' individual accounts and
in-
terest shall be added annually to such accounts.
(2) (a) Subject to the provisions
of K.S.A. 2000 Supp. 74-49,123 and
amendments thereto, each participating employer, pursuant to the
pro-
visions of section 414(h)(2) of the federal internal revenue code,
shall
pick up and pay the contributions which would otherwise be payable
by
members as prescribed in subsection (1) commencing with the third
quar-
ter of 1984. The contributions so picked up shall be treated as
employer
contributions for purposes of determining the amounts of federal
income
taxes to withhold from the member's compensation.
(b) Member contributions picked up by the
employer shall be paid
from the same source of funds used for the payment of compensation
to
a member. A deduction shall be made from each member's
compensation
equal to the amount of the member's contributions picked up by
the
employer, provided that such deduction shall not reduce the
member's
compensation for purposes of computing benefits under the
system.
(c) Member contributions picked up by the
employer shall be remit-
ted quarterly, or as the board may otherwise provide, to the
executive
secretary director for credit to the Kansas
public employees retirement
fund. Such contributions shall be credited to a separate account
within
the member's individual account so that amounts contributed by
the
member commencing with the third quarter of 1984 may be
distinguished
from the member contributions picked up by the employer. Interest
shall
be added annually to members' individual accounts.
Sec. 18. K.S.A. 2000 Supp. 74-4919b
is hereby amended to read as
follows: 74-4919b. (a) Any employee of a participating employer
who
becomes a member of the system as provided in K.S.A. 74-4911 or
74-
4935 and amendments thereto, who has previously been a member of
the
system and who has forfeited participating and prior service credit
by
reason of termination of employment with a participating employer
and
withdrawal of such member's accumulated contributions, may have all
or
a part of such forfeited service reinstated as provided in K.S.A.
74-4901
through 74-4930 and amendments thereto.
(b) Any member, if not actively employed,
who has previously been
a member of the system and who has forfeited participating and
prior
service credit by reason of termination of employment with a
participating
employer and withdrawal of such member's accumulated
contributions
may have all or a part of such forfeited service reinstated as
provided in
K.S.A. 74-4901 through 74-4930 and amendments thereto. Subject to
the
provisions of K.S.A. 2000 Supp. 74-49,123 and amendments thereto,
such
member may purchase such service credit by means of a single
lump-
sum payment. The lump-sum payment shall be an amount determined
by the actuary using the member's annual rate of compensation when
last
participating, the actuarial assumptions and tables currently in
use by the
retirement system and the member's attained age. The
provisions of this
subsection shall not apply to repurchase of previously
forfeited service
credit as provided in subsection (b) of K.S.A. 74-4911b and
amendments
thereto.
Sec. 19. K.S.A. 2000 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
2000 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
K.S.A. 2000 Supp. 74-49,114a, and amendments thereto, shall
be in ad-
dition to the employer contribution rates certified for the
employer con-
tribution 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.
(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 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
serv-
ice contribution shall be credited by the board to the respective
em-
ployer's prior service liability.
(11) 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.
(12) Notwithstanding any provision of law
to the contrary, each par-
ticipating employer shall remit quarterly, or as the board may
otherwise
provide, all employee deductions and required employer
contributions to
the executive secretary director 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. 20. K.S.A. 2000 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 director
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 associations 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
ac-
cordance 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 communication 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) 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;
(ii) the real estate investment is
consistent with the system's invest-
ment policies and objectives as provided in subsection (6); and
(iii) the board has received and
considered the investment manager's
due diligence findings submitted to the board as required by
subsection
(6)(c); 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) An annual
financial-compliance audit of the system, includ-
ing any performance audit subjects which are directed to be
included in
such annual audit by the legislative post audit committee,
performance
audits of the system as prescribed under the Kansas governmental
op-
erations law, and such other audits as are directed by the
legislative post
audit committee under the Kansas legislative post audit act shall
be con-
ducted. The annual financial-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
in-
vestments reported by the system pursuant to K.S.A. 74-4907,
and
amendments thereto.
(b) In accordance with this subsection
(12), the annual financial-com-
pliance audit may include one or more performance audit subjects
as
directed by the legislative post audit committee. In considering
perform-
ance audit subjects to be included in any financial-compliance
audit con-
ducted pursuant to this subsection (12), the legislative post audit
com-
mittee shall consider recommendations and requests for
performance
audits, relating to the system or the management thereof, by the
joint
committee on pensions, investments and benefits or by any other
com-
mittee or individual member of the legislature. Commencing with
the
financial-compliance audit for the fiscal year ending June 30,
1998, the
legislative post audit committee shall specify if one or more
performance
audit subjects shall be included in the financial-compliance audit
con-
ducted pursuant to this subsection (12), in addition to such other
subjects
as may be directed to be included in the financial-compliance audit
by
the legislative post audit committee. Except as otherwise
determined by
the legislative post audit committee pursuant to this subsection
(12), com-
mencing with the financial-compliance audit for the fiscal year
ending
June 30, 1998, one or more performance audit subjects specified by
the
legislative post audit committee shall be included at least once
every two
fiscal years in a financial-compliance audit conducted pursuant to
this
subsection (12). The legislative post audit committee may direct
that one
or more performance audit subjects are to be included in a
financial-
compliance audit conducted pursuant to this subsection (12) not
more
than once during a specific period of three fiscal years, in lieu
of once
every two fiscal years.
(c) The auditor to conduct the
financial-compliance audit required
pursuant to this subsection (12) shall be specified in accordance
with
K.S.A. 46-1122, and amendments 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 (12) shall be conducted in
accord-
ance with generally accepted governmental auditing standards. The
fi-
nancial-compliance audit required pursuant to this subsection (12)
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 reasonably
anticipated
cost of providing the financial-compliance audit pursuant to this
subsec-
tion (12), subject to review and approval by the contract audit
committee
established by K.S.A. 46-1120, and amendments thereto. Upon such
ap-
proval, 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 subsection (12) shall
be a
transaction between the legislative post auditor and the system and
shall
be settled in accordance with the provisions of K.S.A. 75-5516,
and
amendments 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
financial-compli-
ance audits conducted pursuant to this subsection (12).
Sec. 21. K.S.A. 2000 Supp. 74-4922
is hereby amended to read as
follows: 74-4922. The executive secretary
director shall maintain such
records as are necessary to determine the following reserves.
(a) Member's accumulated contribution
reserve. This reserve shall be
maintained within the fund for each member and for each member
having
a vested benefit. Each such reserve account shall be credited with
the
employee's contributions upon receipt thereof and shall be credited
on
June 30 each year with interest: (1) At the actuarial assumption
rate
adopted by the board on the balance in the employee's account as of
the
preceding December 31 for those who first became members prior
to
July 1, 1993; and (2) 4% for those who first became members on
and
after July 1, 1993. For the purposes of crediting interest upon
accumu-
lated contributions, the term member shall include the beneficiary
of a
member during the twelve-month period following the death of a
mem-
ber and the beneficiary of a member pursuant to subsection (6) of
K.S.A.
74-4918 and amendments thereto during any period commencing on
the
date of death of such member and ending on the date that the
member
would have attained retirement age. Refunds of employee's
accumulated
contributions prior to retirement shall be made from this reserve.
Upon
commencement of payments of the retirement benefit, the amount
in
this reserve account for the retiring member or members, shall be
trans-
ferred to the retirement benefit payment reserve.
(b) Retirement benefit accumulation
reserve. This reserve within the
fund shall be credited with the portion of employer contributions
for
retirement benefits both for prior service and for participating
service
and with income of the fund not otherwise directed by law to a
different
reserve. The board shall credit interest to all other reserves and
reserve
accounts as provided by law at rates determined by the board.
Interest
so credited shall be transferred from the retirement benefit
accumulation
reserve. Separate reserve accounts shall not be maintained for each
par-
ticipating employer joining the system on the first entry date. The
board
shall determine whether or not separate reserve accounts shall be
main-
tained for each participating employer joining the system after the
first
entry date.
(c) Retirement benefit payment
reserve. (i) This reserve within the
fund will be credited with the amount transferred from the
member's
accumulated contributions reserve and from the retirement benefit
ac-
cumulation reserve and with interest allocated to this reserve at
the rate
determined each year by the board. This reserve shall be charged
with
payments of retirement benefits including payments upon death of
the
excess of member's accumulated contributions over retirement
benefit
payments paid to date of death. Annually, upon receipt of the
actuarial
valuation as of the end of the previous fiscal year the board shall
cause
certain adjustments to be made which shall be made prior to the end
of
the fiscal year immediately following the fiscal year for which the
actuarial
valuation is applicable.
(ii) The amount of these adjustments
shall be the difference between
the amount required by the current actuarial valuation and the
amount
required by the previous year's actuarial valuation plus amounts
trans-
ferred to this reserve less amounts paid out of this reserve during
the
fiscal year to be adjusted. Such adjustments required to maintain
this
reserve on an actuarial reserve basis as of June 30 of the previous
fiscal
year shall be accomplished by transfers to or from, as applicable,
the
retirement benefit accumulation reserve.
(d) Expense reserve. This reserve
within the fund shall be credited
with interest allocated to this reserve at the rate determined each
year by
the board. It shall be charged with payments of all expenses
incurred in
connection with the administration of the system.
Sec. 22. K.S.A. 2000 Supp. 74-4925
is hereby amended to read as
follows: 74-4925. (1) The state board of regents shall:
(a) Assist all those members of the
faculty and other persons who are
employed by the state board of regents or by educational
institutions
under its management and who are in the unclassified service under
the
Kansas civil service act as provided in subsection (1)(f) of K.S.A.
75-2935
and amendments thereto, except health care employees, as defined
by
subsection (1)(f) of K.S.A. 75-2935 and amendments thereto, in the
pur-
chase of retirement annuities for their service rendered after
December
31, 1961. Effective on the first day of the first payroll period
commencing
with or following July 1, 1994, county extension agents employed by
Kan-
sas state university under K.S.A. 2-615 and amendments thereto
shall be
eligible for assistance by the state board of regents in the
purchase of
retirement annuities under this section. The state board of regents
shall
not assist any such person who is employed after December 31,
1961,
until such person has been employed for a waiting period of at
least one
year except that (i) the state board of regents may assist any
newly em-
ployed person immediately if at the time of the commencement of
em-
ployment the person is covered by a valid retirement annuity
contract
issued by a company described in subsection (2) which was entered
into
pursuant to a retirement pension plan adopted for faculty members
or
other persons, or both, employed by an institution of higher
education
and to which such person or such person's employer on such
person's
behalf has been making contributions for at least one year, and
(ii) all
periods of employment with (A) participating employers under the
Kansas
public employees retirement system, for which employment
participating
service credit accrued, or (B) institutions of higher education in
other
states for which employment retirement benefits accrued under a
retire-
ment system or plan provided for such employment, shall be
credited
toward satisfaction of such one-year waiting period if served, in
either
case, during the five years immediately preceding employment with
the
state board of regents or with an educational institution under its
man-
agement in the unclassified service under the Kansas civil service
act as
provided in subsection (1)(f) of K.S.A. 75-2935 and amendments
thereto,
in addition to such employment with the state board of regents or
with
an educational institution under its management; no period of
employ-
ment as a student employee, as a seasonal or temporary employee or
as
a part-time employee, whose employment requires less than 1,000
hours
of work per year, shall be credited toward the one-year waiting
period
under subsection (1)(a); this act shall not apply to persons
employed in
such temporary and part-time positions designated by the state
board of
regents as exceptions hereto;
(b) require such members of the faculty
and others described in sub-
section (1)(a) who are so assisted by the state board of regents to
con-
tribute an amount toward the purchase of such retirement annuities
of
5.5% of their salaries, such contributions to be made through
payroll
deductions and on a pretax basis;
(c) contribute an amount toward the
purchase of such retirement
annuities equal to the percentage amount, as prescribed by K.S.A.
74-
4925e and amendments thereto, of the total amount of the salaries
on
which such members of the faculty and others described in
subsection
(1)(a) contribute during such period for which the contribution of
the
state board of regents is made;
(d) provide, under such rules and
regulations as the state board of
regents may adopt, for the retirement of any such member of the
faculty
or other person described in subsection (1)(a) on account of age or
con-
dition of health, retirement of such member of the faculty or other
person
described in subsection (1)(a) on account of age to be not earlier
than the
55th birthday and prior to January 1, 1994, not later than the end
of the
academic year following the 70th year. On and after January 1,
1994, there
shall be no mandatory retirement on account of age. Any person
who
retires under this section and who receives benefits from the
Kansas pub-
lic employees retirement system for prior service credit shall have
such
benefits calculated in accordance with the applicable provisions of
K.S.A.
74-4914 and 74-4915 and amendments thereto.
(2) For the purposes of this section the
state board of regents may
contract with:
(a) Any life insurance company authorized
to do business in this state;
or
(b) any life insurance company organized
and operated without profit
to any private shareholder or individual exclusively for the
purpose of
aiding and strengthening educational institutions by issuing
insurance and
annuity contracts only to or for the benefit of such institution
and indi-
viduals engaged in the services of such institutions, whether or
not such
company is authorized to do business in Kansas. No premium tax or
in-
come tax shall be due or payable on such annuity contract or
contracts
for such retirement programs issued by a company described in this
sub-
section (2)(b), except that neither the purchase nor the issuance
of such
retirement annuities from or by a company described in this
subsection
(2)(b) shall constitute the effecting of a contract of
insurance.
(3) (a) Such member of the faculty
or other person described in sub-
section (1)(a) shall also be a member of the Kansas public
employees
retirement system, but only for the purpose of granting retirement
ben-
efits based on prior service only which was rendered prior to
January 1,
1962, which shall be credited to the member as provided in
subsection
(1) of K.S.A. 74-4913 and amendments thereto, except that such
member
of the faculty or other person described in subsection (1)(a) who
was
employed prior to July 1, 1962, who has not yet retired and who is
em-
ployed on July 1, 1988, on an academic year contract, shall receive
credit
for 12 months of prior service for each nine months of prior
service for
which such member or person was employed on an academic year
con-
tract prior to July 1, 1962. For the purpose of determining
eligibility for
a vested benefit, service by such a member of the faculty or other
person
after December 31, 1961, shall be construed to be credited service
under
subsection (2) of K.S.A. 74-4917 and amendments thereto.
(b) Any member of the faculty or other
person described in subsec-
tion (1)(a) who retires after 10 years of continuous service
immediately
preceding retirement shall be granted a retirement benefit based on
prior
service only which was rendered prior to January 1, 1962.
Application for
such benefit shall be in such form and manner as the board shall
pre-
scribe.
(4) For the purpose of establishing a
procedure whereby the state
board of regents and any member of the faculty or other person
described
in subsection (1)(a), subject to rules and regulations of the state
board of
regents, may take advantage of section 403(a) or (b) of the federal
internal
revenue code of 1986 or any other section of the federal internal
revenue
code of 1986 which defers or excludes amounts from inclusion in
income,
any member of the faculty or any other person described in
subsection
(1)(a), whether or not such person has satisfied the one-year
waiting pe-
riod requirement under subsection (1)(a), may request in writing
that the
state board of regents reduce such person's annual salary, as fixed
by the
board, in an amount equal to not less than 5% nor more than the
per-
centage allowed under section 403(b) of the federal internal
revenue code
of 1986, as designated by such member of the faculty or other
person
described in subsection (1)(a), of the gross amount of such annual
salary.
In the event of such request by a faculty member or other person
who is
required to make the contribution as provided in subsection (1)(b),
such
person shall not be required to make such contribution and the
state
board of regents shall provide a sum equal to the percentage
amount, as
prescribed by K.S.A. 74-4925e and amendments thereto, of the
gross
annual salary of the member of the faculty or other person and
shall
purchase for and on behalf of each such person whose salary has
been so
reduced a retirement annuity contract or contracts, the annual
premiums
for which shall be equal to the sum of the amount of the salary
reduction
of the member of the faculty or other person and the amount paid by
the
state board of regents. In the event of such request by a faculty
member
or other person who is serving the one-year waiting period pursuant
to
subsection (1)(a) who is not required to make the contribution as
provided
in subsection (1)(b), the state board of regents shall purchase for
and on
behalf of each such person whose salary has been so reduced a
retirement
annuity contract or contracts, the annual premiums for which shall
be
equal to the sum of the amount of the salary reduction of the
member
of the faculty or other person, but the state board of regents
shall not
provide the sum equal to the percentage amount, as prescribed by
K.S.A.
74-4925e and amendments thereto, of the gross annual salary of
such
person as provided for such person who is required to make the
contri-
bution as provided in subsection (1)(b). Such retirement annuity
contracts
may be purchased by the state board of regents from companies
described
in subsection (2)(a) and subsection (2)(b) or from noninsurance
compa-
nies who offer retirement plans that meet the requirements of
section
403(b) of the federal internal revenue code of 1986, except that
the state
board of regents may require that the first 5% of the gross amount
of
such person's annual salary which is reduced under this subsection
(4)
and the amount equal to the percentage amount, as prescribed by
K.S.A.
74-4925e and amendments thereto, of the gross amount of such
person's
annual salary which is provided by the state board of regents for
the
purchase of retirement annuity contracts under this subsection (4),
if
required to be provided under this subsection (4), shall be used to
pur-
chase such retirement annuity contracts from such company or
companies
as may be designated by the state board of regents for such
purposes.
The director of accounts and reports is authorized to draw warrants
on
the state treasurer upon the filing with the director of proper
vouchers
for the amount of the premium on the retirement annuity contract to
be
paid pursuant to the terms of such contracts and this act.
(5) All employees who are described in
subsection (1)(a) and who
commence such employment on and after July 1, 1976, shall receive
as-
sistance under subsection (1) and shall be covered by a valid
retirement
annuity contract issued by a company described in subsection
(2).
(6) Any employee of the state board of
regents or of an educational
institution under its management, 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 this section and who
becomes
ineligible for such assistance because such employee's position is
reclas-
sified to a position in the classified service under the Kansas
civil service
act or who becomes ineligible for such assistance because such
employee
transfers to a position in the classified service under the Kansas
civil serv-
ice act with the state board of regents or an educational
institution under
its management, shall become a member of the Kansas public
employees
retirement system in accordance with the provisions of subsection
(5) of
K.S.A. 74-4911 and amendments thereto, unless such employee files
a
written election in the office of the Kansas public employees
retirement
system, in the form and manner prescribed by the board of
trustees
thereof, to remain eligible for assistance by the state board of
regents
under this section 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 eligible for assistance by the state board of regents
under this
section and to become a member of the Kansas public employees
retire-
ment system under subsection (5) of K.S.A. 74-4911 and
amendments
thereto. Such election, whether to remain eligible for such
assistance or
to become a member of such system, shall be effective as of the
effective
date of such reclassification or transfer and shall be
irrevocable.
(7) The state board of regents shall
adopt uniform policies applicable
to members of the faculty and other persons, who are employed by
the
state board of regents or by any educational institution under its
man-
agement and who are in the unclassified service under the Kansas
civil
service act as provided in subsection (1)(f) of K.S.A. 75-2935 and
amend-
ments thereto, except health care employees, as defined by
subsection
(1)(f) of K.S.A. 75-2935 and amendments thereto, for the purposes
of
administering the provisions of this section and the provision of
retire-
ment annuities and other benefits hereunder. All assistance
provided by
the state board of regents for such persons, and agreements entered
into
therefor, pursuant to this section prior to the effective date are
hereby
authorized, confirmed and validated.
(8) Any employee described in subsection
(1)(a) who is on leave of
absence and who accepts a position in the executive branch of
govern-
ment may file a written election in the office of the Kansas public
em-
ployees retirement system, in the form and manner prescribed by
the
board, to remain eligible for assistance by the state board of
regents under
this section prior to the first day of the first complete payroll
period
occurring after the commencement of such service in the
executive
branch of government. Failure to file such written election shall
be pre-
sumed to be an election not to remain eligible for assistance by
the state
board of regents. The state board of regents shall contribute an
amount
toward the purchase of retirement annuities on behalf of such
employee
equal to the sum of the amounts provided in subsection (1)(c).
(9) Any employee described in
subsection (1)(a) who is on leave of
absence and who is elected or appointed as a member of the
legislature
may file a written election in the office of the Kansas public
employees
retirement system, in the form and manner prescribed by the
board, to
remain eligible for assistance by the state board of regents
under this
section prior to the first day of the first complete payroll
period occurring
after the commencement of such service in the legislature or for
any em-
ployee who is a member of the legislature on January 8, 2001,
prior to
the first day of the first complete payroll period occurring
after July 1,
2001. Failure to file such written election shall be presumed to
be an
election not to remain eligible for assistance by the state
board of regents.
For any employee who files an election as provided in this
subsection and
who was a member of the legislature on January 8, 2001, such
election
shall be effective on January 8, 2001. The state board of
regents shall
contribute an amount toward the purchase of retirement annuities
on
behalf of such employee equal to the percentage amount, as
prescribed by
K.S.A. 74-4925e, and amendments thereto, on the biweekly rate of
the
salary of such employee with the state board of regents in
effect on the
date preceding such leave of absence and continuing throughout
such
leave of absence. Any such employee who makes an election as
provided
by this subsection shall be eligible for the insured death
benefit and in-
sured disability benefit in the same manner as provided under
the pro-
visions of K.S.A. 74-4927a, and amendments thereto. The
provisions of
this section are intended to further the public policy of
encouraging per-
sons to serve in elective office.
Sec. 23. K.S.A. 2000 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 member's last day on the payroll 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
member's
last day on the payroll 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 December
31, 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. 24. K.S.A. 2000 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, 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 retirement 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, 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 period commencing on
April l, 2000, and end-
ing on December 31, 2001.
Sec. 25. K.S.A. 2000 Supp. 74-4927h
is hereby amended to read as
follows: 74-4927h. (1) The provisions of this section shall apply
to em-
ployees of the state board of regents and institutions under its
manage-
ment covered by the provisions of K.S.A. 74-4925 and 74-4927a
and
amendments thereto. This section shall be administered by the board
of
trustees of the Kansas public employees retirement system.
(2) (a) In the event that a member
dies before retirement as a result
of an accident arising out of and in the course of the member's
actual
performance of duty in the employ of a participating employer
inde-
pendent of all other causes and not as a result of a willfully
negligent or
intentional act of the member, an accidental death benefit shall be
pay-
able if: (A) A report of the accident, in a form acceptable to the
board, is
filed in the office of the executive secretary
director of the board within
60 days of the date of the accident causing such death, and an
application
for such benefit, in such form and manner as the board shall
prescribe,
is filed in the office of the executive secretary
director of the board within
two years of the date of the accident, but the board may waive such
time
limits for a reasonable period if in the judgment of the board the
failure
to meet these limits was due to lack of knowledge or incapacity;
and (B)
the board finds from such evidence as it may require, to be
submitted in
such form and manner as it shall prescribe, that the natural and
proximate
cause of death was the result of an accident arising out of and in
the
course of the member's employment with a participating employer
in-
dependent of all other causes at a definite time and place. Such
accidental
death benefit shall be a lump-sum amount of $50,000 and an
annual
amount of 1/2 of the member's final average salary which shall
accrue from
the first day of the month following the date of death and which
shall be
payable in monthly installments or as the board may direct, but in
no case
shall the accidental death benefit be less than $100 per month. The
ac-
cidental death benefit payments shall be paid to the surviving
spouse of
such deceased member, such payments to continue so long as such
sur-
viving spouse lives or until such surviving spouse remarries. If
there is no
surviving spouse, or in the case the spouse dies or remarries
before the
youngest child of such deceased member attains age 18 years or
before
the youngest child of such deceased member attains age 23, if such
child
is a full-time student as provided in K.S.A. 74-49,117, or if there
are one
or more children of the member who are totally disabled and
dependent
on the member or spouse, the accidental death benefit payments
shall be
paid to the child or children of such member under age 18 years or
under
age 23 years, if such child or children are full-time students as
provided
in K.S.A. 74-49,117 and to the child or children of the member who
are
totally disabled and dependent on the member or spouse, such
payments
to be divided in such manner as the board in its discretion shall
determine
and to continue until the youngest surviving child dies or attains
age 18
years or attains age 23 years, if such child is a full-time student
as provided
in K.S.A. 74-49,117, in the case of the child or children who are
totally
disabled and dependent on the member or spouse, until death or
until
no longer totally disabled. If there is no surviving spouse or
child eligible
for accidental death benefits under this subsection (2) at the time
of the
member's death, the accidental death benefit payments shall be paid
to
the parent or parents of such member who are dependent on such
mem-
ber, such payments to continue until the last such parent dies. All
pay-
ments due under this subsection (2) to a minor shall be made to a
legally
appointed conservator of such minor or totally disabled child as
provided
in subsection (7) of K.S.A. 74-4902 and amendments thereto.
(b) In construction of this section,
there shall be no presumption that
the death of the member was the result of an accident nor shall
there be
a liberal interpretation of the law or evidence in favor of the
person claim-
ing under this subsection (2). In the event of the death of a
member
resulting from a heart, circulatory or respiratory condition, there
must be
clear and precise evidence that death was the result of an accident
in-
dependent of all other causes which arose out of and in the course
of the
member's actual performance of duties in the employ of a
participating
employer.
(c) The value, as determined by the board
upon recommendation of
the actuary, of any worker's compensation benefits paid or payable
to the
recipient or recipients of an annual benefit under this subsection
(2) shall
be deducted from the amounts which become payable under this
section.
In the event that a member should die as a result of an accident as
de-
scribed in this subsection (2), all elections or options previously
made by
the deceased member shall become void and of no effect whatsoever
and
the retirement system shall be liable only for the accidental death
benefit
and any insured death benefit that may be due. The benefit payable
under
this subsection (2) shall be known and referred to as the
``accidental death
benefit.''
(3) Any costs to the board from the
claims arising under this section
shall be included in the rate certified by the board to finance the
costs of
members under subsection (3) of K.S.A. 74-4925 and amendments
thereto.
(4) The payment of benefits as provided
in this section is subject to
the provisions of K.S.A. 2000 Supp. 74-49,123 and amendments
thereto.
Sec. 26. K.S.A. 2000 Supp. 74-4932
is hereby amended to read as
follows: 74-4932. As used in this act, unless the context otherwise
re-
quires:
(1) ``Accumulated contributions'' means
the sum of all contributions
by a member to the system which shall be credited to such
member's
account, with interest allowed thereon, plus such member's
contributions
transferred from the school employees savings fund of the state
school
retirement system;
(2) ``compensation'' means the same as
defined in subsection (9) of
K.S.A. 74-4902 and amendments thereto;
(3) ``school year'' means the
twelve-month period beginning Septem-
ber 1 and ending August 31;
(4) ``employee'' means any employee of a
participating employer
which is an eligible employer, as specified in K.S.A. 74-4931 and
amend-
ments thereto, whose employment is not seasonal or temporary
and
whose employment requires at least 630 hours of work per year or
3.5
hours of work per day for at least 180 days or any employee who is
con-
currently employed by two or more eligible employers, as specified
in
K.S.A. 74-4931 and amendments thereto, whose combined
employment
is not seasonal or temporary and whose combined employment
requires
at least 630 hours of work per year or 3.5 hours of work per day
for at
least 180 days. Employee shall not include:
(a) Any employee who is covered by or
eligible for or who will be-
come eligible for retirement benefits under any retirement plan or
system
provided by K.S.A. 74-4925 and amendments thereto;
(b) any employee who is a contributing
member of the United States
civil service retirement system;
(c) any employee or class of employees
specifically exempt by law,
except those persons who were formerly employees of one or more
of
the participating employers which are eligible employers as
specified in
K.S.A. 74-4931 and amendments thereto, who are covered by and
have
contributions on deposit with the state school retirement system
and who
have not retired under that system on the day next preceding entry
date;
(d) any employee who on entry date is
covered by or eligible for or
will become eligible for retirement benefits under a separate
retirement
system authorized or established under K.S.A. 72-1758 to 72-1769,
inclu-
sive, and amendments thereto, or K.S.A. 72-6780 and amendments
thereto, except that this paragraph (d) shall not include any
employee,
who before September 1, 1974, elects to become a member of the
Kansas
public employees retirement system as provided in K.S.A. 74-4935a
and
amendments thereto; or
(e) on and after July 1, 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 eligibility for a retirement annuity under the provisions of
K.S.A.
74-4925 and amendments thereto. However, no person shall receive
serv-
ice credit under the Kansas public employees retirement system for
any
period of service for which benefits accrue or are granted under a
retire-
ment annuity plan under the provisions of K.S.A. 74-4925 and
amend-
ments thereto;
(5) ``executive
secretary director'' means the managing
officer of the
system as defined in subsection (16) of K.S.A. 74-4902 and
amendments
thereto;
(6) ``military service'' means the same
as defined in subsection (22)
of K.S.A. 74-4902 and amendments thereto, and includes such
service
when followed by return to employment with the same or another
par-
ticipating employer on or before the beginning of the next school
year
following discharge or separation from such military service;
(7) ``normal retirement date'' means the
same as defined in subsec-
tion (23) of K.S.A. 74-4902 and amendments thereto, as modified
by
subsection (1) of K.S.A. 74-4937 and amendments thereto;
(8) ``school employment'' means the
employment of a member when
employed by an eligible employer as specified in any of
subsections sub-
section (1), (2) or (3) of K.S.A. 74-4931 and amendments
thereto; and
(9) ``USERRA'' means the same as defined
in subsection (35) of
K.S.A. 74-4902 and amendments thereto.
Sec. 27. K.S.A. 74-4934 is hereby
amended to read as follows: 74-
4934. (1) On and after July 1, 1970, the state school retirement
board is
abolished and such board shall have no further legal authority or
powers.
On such date all of the powers provided in K.S.A. 72-5501 to
72-5534
and amendments thereto shall devolve upon and be performed by
the
board of trustees of the Kansas public employees retirement system,
and
all powers heretofore exercised by the state school retirement
board, in-
cluding management and control of the assets and funds of the
state
school retirement system, shall be and become vested in the board
of
trustees of the Kansas public employees retirement system. Whenever
in
the statutes of this state the words ``state school retirement
board'' or
words of like effect are used, the same shall be deemed to mean
the
board of trustees of the Kansas public employees retirement system.
The
board of trustees of the Kansas public employees retirement system
is
authorized to execute transfer endorsements for any stock or
security of
the state school retirement system and such endorsements may be in
the
name of the state school retirement board.
(2) On January 1, 1971, there shall be
transferred from the school
employees savings fund of the state school retirement system such
mon-
eys and securities, and accumulated earnings thereon, as are equal
to the
accumulated contributions (savings annuity deductions or
accumulated
deductions) of the members of the state school retirement system
on
deposit with the state school retirement system who become members
of
this system on January 1, 1971, as provided in K.S.A. 74-4935. Such
trans-
fer of securities in the school employees savings fund shall be on
the basis
of the book value of such securities. The member's account in this
system
shall be credited with the amount in his savings annuity account
(savings
annuity deductions or accumulated deductions) so transferred.
(3) ``Executive
secretary director'' as used in K.S.A.
72-5501 to 72-
5534, inclusive, and amendments thereto means the same as is
provided
in subsection (5) of K.S.A. 74-4932. The duties provided in such
statutes
to be performed by the executive secretary
director shall be performed
by the person holding the office defined in subsection (5) of
K.S.A. 74-
4932. Employees of the state school retirement board shall continue
in
state service and retain all their rights under the Kansas civil
service act.
Sec. 28. K.S.A. 2000 Supp. 74-4940
is hereby amended to read as
follows: 74-4940. (a) Subject to the provisions of subsection (b),
all mem-
bers in school employment who are subject to the continuing
contract
law shall be paid their contractual compensation in not less than
12 sub-
stantially equal installments, paid once, or more often, each month
com-
mencing in September of each school year.
(b) Upon written authorization from any
member in school employ-
ment who is subject to the continuing contract law, an employer
shall pay
the balance of such member's contractual compensation for the
school
year in one payment upon completion of all contractual obligations
of the
member. The authorization shall be filed with the employer not
later than
April 1 of the school year in and for which the balance payment is
first
authorized. A written authorization under this subsection shall
remain in
effect until revoked in writing by the member filing the
authorization. So
long as the authorization of such member remains in effect, the
balance
of the member's contractual compensation shall be paid each school
year
in accordance with the provisions of this subsection. Such payment
shall
be made no later than June 30 of the school year. For the purposes
of
the Kansas public employees retirement system, the employer shall
make
the appropriate employee contribution deduction from the payment
and
shall report and remit the amount so deducted to the executive
secretary
director at the time monthly deductions and quarterly
reports would nor-
mally be made under K.S.A. 74-4919, and amendments thereto, if
the
authorization for one payment was not in effect.
(c) Notwithstanding the provisions of
subsections (a) and (b), each
member in school employment who is subject to the continuing
contract
law, who has completed the balance of such member's contractual
obli-
gations and retires prior to the end of a school year under K.S.A.
74-4937,
and amendments thereto, shall be paid the balance of the member's
con-
tractual compensation in one payment during the calendar month
im-
mediately preceding the date of retirement. For the purposes of the
Kan-
sas public employees retirement system, the employer shall make
the
appropriate employee contribution deduction from the payment and
shall
report and remit the amount so deducted to the executive
secretary di-
rector at the time monthly deductions and reports are made
under K.S.A.
74-4919, and amendments thereto, for the period in which the
payment
is made except that such report and remittance shall not include
any
amount which would have been reported normally in the next
ensuing
period under subsection (b). No employee contribution deduction
shall
be made from such amount and such amount shall not be included
as
compensation in determining the member's final average salary.
(d) An employer of members in school
employment who are not sub-
ject to the continuing contract law may adopt a policy providing
that any
or all such members shall be paid their contractual compensation
each
school year in not less than 12 substantially equal installments,
paid once,
or more often, each month commencing in the first month of any
such
member's school employment. A copy of any such policy shall be
provided
to each such member in school employment.
(e) As used in this section, the term
``school employment'' means the
employment of a member when employed by an eligible employer as
specified in any of subsections (1), (2) or (3) of K.S.A. 74-4931,
and
amendments thereto.
Sec. 29. K.S.A. 2000 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
employ-
ment 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 in an amount equal to $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 director of the system,
the secretary of revenue shall
provide such information as may be needed by the executive
secretary
director to carry out the provisions of this act.
Sec. 30. K.S.A. 2000 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
serv-
ice, 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 in an amount equal to $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 director of the system,
the secretary of revenue shall
provide such information as may be needed by the executive
secretary
director 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. 31. K.S.A. 2000 Supp. 74-4958
is hereby amended to read as
follows: 74-4958. (1) Any member who retires on or after July 1,
1993,
shall be entitled to receive an age and service retirement benefit
equal
to 2.5% of such member's final average salary multiplied by the
number
of years of credited service except that in no case shall such
retirement
benefit exceed 80% of such member's final average salary.
(2) Any member who is appointed or
employed prior to July 1, 1989,
who does not make an election pursuant to K.S.A. 74-4955a and
amend-
ments thereto and who retires before such member's normal
retirement
date shall receive an early retirement benefit equal to the annual
retire-
ment benefit payable had the member retired on the normal
retirement
date reduced by an amount equal to the product of (A) such annual
re-
tirement benefit payable had the member retired on the normal
retire-
ment date, multiplied by (B) the product of .4% multiplied by the
number
of months difference, to the nearest whole month, between the
member's
attained age at the time of retirement and age 55.
(3) Pursuant to the provisions of
K.S.A. 2000 Supp. 74-49,128, and
amendments thereto, Upon the death after
retirement of a member who
was covered, up to the entry date of the member's employer, by a
pension
system under the provisions of K.S.A. 12-5001 to 12-5007,
inclusive, and
amendments thereto, or K.S.A. 13-14a01 to 13-14a14, inclusive,
and
amendments thereto, or K.S.A. 14-10a01 to 14-10a15, inclusive,
and
amendments thereto, and who had not elected to retire under one of
the
options provided under K.S.A. 74-4964 and amendments thereto,
the
member's spouse, if such spouse was the member's lawfully
wedded
spouse for a period of not less than one year at the time of the
member's
retirement or if such spouse had been the member's lawfully
wedded
spouse for at least three years after the time of the member's
retirement,
shall receive: (A) Pursuant to the provisions of K.S.A. 2000
Supp. 74-
49,128, and amendments thereto, a lump-sum benefit equal to
1/2 the
member's final average salary at the time of the member's
retirement;
and shall receive (B) an annual spouse's
benefit equal to 75% of the
member's retirement benefit payable in monthly installments, to
accrue
from the last 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 K.S.A. 2000 Supp. 74-49,123 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 ter-
mination of benefits by reason of such child's marriage but before
the
effective date of this act. All payments due under this section to
a minor
shall be made to a legally appointed conservator of such minor as
provided
in subsection (7) of K.S.A. 74-4902 and amendments thereto. No
person
shall be entitled to receive more than one benefit under the
provisions
of this subsection. Any person who otherwise meets the
qualifications to
receive more than one benefit under this subsection shall elect the
benefit
such person shall receive.
(4) Upon the death after retirement of a
member who had not elected
to retire under one of the options provided under K.S.A. 74-4964
and
amendments thereto, such member's beneficiary shall receive an
amount
equal to the excess, if any, of such member's accumulated
contributions
over the sum of all retirement benefit payments made.
(5) The provisions of law in effect on
the retirement date of a member
under the system shall govern the retirement benefit payable to the
re-
tirant, any joint annuitant and any beneficiary.
Sec. 32. K.S.A. 2000 Supp. 74-4958a
is hereby amended to read as
follows: 74-4958a. (1) Any member who retires on or after July 1,
1993,
shall be entitled to receive an age and service retirement benefit
equal
to 2.5% of such member's final average salary multiplied by the
number
of years of credited service except that in no case shall such
retirement
benefit exceed 80% of such member's final average salary.
(2) Any member who retires before such
member's normal retire-
ment date shall receive an early retirement benefit equal to the
annual
retirement benefit payable had the member retired on the normal
retire-
ment date reduced by an amount equal to the product of (A) such
annual
retirement benefit payable had the member retired on the normal
retire-
ment date, multiplied by (B) the product of .4% multiplied by the
number
of months difference, to the nearest whole month, between the
member's
attained age at the time of retirement and age 55.
(3) Pursuant to the provisions of K.S.A.
2000 Supp. 74-49,128, and
amendments thereto, upon the death after retirement of a member
who
was covered, up to the entry date of the member's employer, by a
pension
system under the provisions of K.S.A. 12-5001 to 12-5007,
inclusive, and
amendments thereto, or K.S.A. 13-14a01 to 13-14a14, inclusive,
and
amendments thereto, or K.S.A. 14-10a01 to 14-10a15, inclusive,
and
amendments thereto, and who had not elected to retire under one of
the
options provided under K.S.A. 74-4964 and amendments thereto,
the
member's spouse, if such spouse was the member's lawfully
wedded
spouse for a period of not less than one year at the time of the
member's
retirement or if such spouse had been the member's lawfully
wedded
spouse for at least three years after the time of the member's
retirement,
shall receive: (A) Pursuant to the provisions of K.S.A. 2000
Supp. 74-
49,128, and amendments thereto, a lump-sum benefit equal to
1/2 the
member's final average salary at the time of the member's
retirement;
and shall receive (B) an annual spouse's
benefit equal to 75% 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 K.S.A. 2000 Supp. 74-49,123 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 ter-
mination of benefits by reason of such child's marriage but before
the
effective date of this act. All payments due under this section to
a minor
shall be made to a legally appointed conservator of such minor as
provided
in subsection (7) of K.S.A. 74-4902 and amendments thereto. No
person
shall be entitled to receive more than one benefit under the
provisions
of this subsection. Any person who otherwise meets the
qualifications to
receive more than one benefit under this subsection shall elect the
benefit
such person shall receive.
(4) Upon the death after retirement of a
member who had not elected
to retire under one of the options provided under K.S.A. 74-4964
and
amendments thereto, such member's beneficiary shall receive an
amount
equal to the excess, if any, of such member's accumulated
contributions
over the sum of all retirement benefit payments made.
(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
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.
(6) The provisions of law in effect on
the retirement date of a member
under the system shall govern the retirement benefit payable to the
re-
tirant, any joint annuitant and any beneficiary.
Sec. 33. K.S.A. 2000 Supp. 74-4959
is hereby amended to read as
follows: 74-4959. (1) Upon the death from service-connected causes
as
defined in this act, of an active contributing member prior to
retirement,
the following benefits shall be payable if a report of the event,
in a form
acceptable to the board, is filed in the office of the executive
secretary
director of the board within 200 days after the date of the
act of duty
causing such death and an application for such benefits, in such
form and
manner as prescribed by the board, is filed in the office of the
executive
secretary director of the board within two
years of the date of death, but
the board may waive such time limits for a reasonable period if in
the
judgment of the board the failure to meet these limits was due to
lack of
knowledge or incapacity:
(a) To the member's spouse, if lawfully
wedded to the member at the
time of the member's death, an annual spouse's benefit equal to 50%
of
the member's final average salary, which shall accrue from the
first day
of the month coinciding with or following the member's death and
shall
end on the first day of the month in which the spouse's death
occurs.
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 termination of benefits by reason of such surviving
spouse's
remarriage but before the effective date of this act.
(b) Subject to the provisions of K.S.A.
2000 Supp. 74-49,123 and
amendments thereto, to the member's children under the age of 18
years
or under the age of 23 years, if such children are full-time
students as
provided in K.S.A. 74-49,117 and amendments thereto an annual
chil-
dren's benefit equal to 10% of the member's final average salary
for each
such child, which shall accrue from the first day of the month
coinciding
with or following the member's death and 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, except that if there is no eligible spouse, or if
upon the
death of the spouse there remain one or more children under the age
of
18 years or under the age of 23 years, if such children are
full-time stu-
dents as provided in K.S.A. 74-49,117 and amendments thereto, the
an-
nual spouse's benefit shall be paid 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.
Com-
mencing 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.
(c) In no case shall benefits payable
under the provisions of para-
graphs (a) and (b) of this subsection (1) exceed 75% of the
member's
final average salary.
(2) Pursuant to the provisions of K.S.A.
2000 Supp. 74-49,128, and
amendments thereto, upon the death from causes not
service-connected
of an active contributing member prior to retirement, the
member's
spouse, if lawfully wedded to the member at the time of the
member's
death, shall receive immediately a lump-sum benefit equal to 100%
of
the member's final average salary and shall be entitled to receive
an an-
nual death benefit equal to the member's retirement benefit
calculated
as if the member had retired on the member's normal retirement
date,
but based upon the member's final average salary and years of
credited
service on the date of death but not to exceed the amount of the
annual
spouse's benefit provided in paragraph (a) of subsection (1). An
applica-
tion for such benefits in such form and manner as prescribed by the
board
must be filed in the office of the executive
secretary director of the board
within two years of the date of death, but the board may waive such
time
limit for a reasonable period if in the judgment of the board the
failure
to meet this limit was due to the lack of knowledge or incapacity.
On and
after July 1, 1993, the annual spouse's benefit under this
subsection (2)
shall accrue from the first day of the month coinciding with or
following
the member's death and shall continue until the spouse's death.
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 eligible
spouse or if after the death of the spouse there remain one or
more
children of the member under the age of 18 years or one or more
children
of the member under the age of 23 years, if such children are
full-time
students as provided in K.S.A. 74-49,117 and amendments thereto,
the
spouse's benefit shall be payable, subject to the provisions of
K.S.A. 2000
Supp. 74-49,123 and amendments thereto, in equal shares to such
chil-
dren 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.
(3) Upon the death of a member prior to
retirement, if no benefits
are payable under the provisions of subsection (1) or (2), the sum
of the
following shall be paid to the member's beneficiary: (a) The
member's
accumulated contributions; and (b) a lump sum death benefit equal
to
100% of the member's current annual salary reduced by the sum of
the
member's accumulated contributions paid as provided by this
section.
(4) All payments due under this section
to a minor shall be made to
a legally appointed conservator of such minor as provided in
subsection
(7) of K.S.A. 74-4902 and amendments thereto.
Sec. 34. K.S.A. 2000 Supp. 74-4960
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
mem-
ber 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 director 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
author-
ized representative in the office of the executive
secretary director of the
board within two years of the date of disability, except the
board may
waive such two-year requirement if the board is presented with
evidence
that clearly warrants such a waiver:
(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) Except as otherwise provided by
this subsection, each of the mem-
ber'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 termination of benefits by reason of such
child's mar-
riage but before the effective date of this act. For a member
who becomes
totally and permanently disabled as provided in this section on
and after
July 1, 2001, only the member's children who were born,
conceived or
adopted prior to the commencement of the member's disability are
entitled
to the annual benefit as provided in this subsection.
(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 K.S.A. 2000 Supp. 74-49,123 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 ter-
mination 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
director 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 director of the board within two
years of the date of disability:,
except that the board may waive such two-year requirement, if
the board
is presented with evidence that clearly warrants such a
waiver.
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) Pursuant to the provisions of
K.S.A. 2000 Supp. 74-49,128, and
amendments there, In the event a member who is
retired under subsec-
tion (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) Pursuant to the provisions of
K.S.A. 2000 Supp. 74-49,128, and
amendments thereto, to the member's spouse, if lawfully
wedded to the
member at the time of the member's death and if no benefits are
payable
under subsection (3) of K.S.A. 74-4958, and amendments
thereto, 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 K.S.A. 2000 Supp. 74-49,123 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 ter-
mination 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 more 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 trus-
tees may direct. If upon such medical examination, the examiner's
report
to the board states that the retirant is physically able and
capable of re-
suming employment with the same or a different participating
employer,
the disability benefits shall terminate. A retirant who has been
receiving
benefits under the provisions of this section and who returns to
employ-
ment, as defined in subsection (4) of K.S.A. 74-4952 and
amendments
thereto, of a participating employer shall immediately commence
accru-
ing 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
director 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'
workers compensation in ac-
cordance with K.S.A. 44-557 and amendments thereto, such report to
the
director of workers' 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
re-
quirement 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.
(14) Upon the death of a member after
retirement, if no benefits are
payable under the provisions of this section, the excess, if
any, of the
retirant's accumulated contributions over the sum of all
benefits paid shall
be paid to the member's beneficiary.
Sec. 35. K.S.A. 2000 Supp. 74-4960a
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
pro-
visions 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 installments, 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 ex-
ecutive secretary director of the board
within 220 days after the date of
the commencement of such disability and if an application for such
ben-
efit in such form and manner as the board shall prescribe is filed
in the
office of the executive secretary director
of the board within two years of
the date of the commencement of such disability, except that the
board
may waive such two-year requirement, if the board is presented
with
evidence that clearly warrants such a waiver.
(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) Pursuant to the provisions of
K.S.A. 2000 Supp. 74-49,128, and
amendments thereto, In the event a member who is
disabled and entitled
to such benefits 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) Pursuant to the provisions of
K.S.A. 2000 Supp. 74-49,128, and
amendments thereto, to the member's spouse, if lawfully
wedded to the
member at the time of the member's death, and if no benefits are
payable
under subsection (3) of K.S.A. 74-4958a, and amendments
thereto, 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 K.S.A. 2000 Supp. 74-49,123 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 more frequent than annually, by one or
more
physicians or any other practitioners of the healing arts holding a
valid
license issued by the state board of healing arts to practice a
branch of
the 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 employer, 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
immediately 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
mem-
ber'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 member's last day on the
payroll
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.
(16) Upon the death of a member after
retirement, if no benefits are
payable under the provisions of this section, the excess, if
any, of the
retirant's accumulated contributions over the sum of all
benefits paid shall
be paid to the member's beneficiary.
Sec. 36. K.S.A. 2000 Supp. 74-4963
is hereby amended to read as
follows: 74-4963. (1) Upon termination of employment prior to the
com-
pletion 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 member does not return to covered employment within
five
years, such member 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 prescribed 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 K.S.A. 2000 Supp.
74-49,123 and
amendments thereto, members who do not elect to repay
within 31 days
of return to covered employment may elect to purchase
previously for-
feited 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 member elects to repurchase. purchase
service credit for such pre-
viously forfeited service credit, subject to the provisions of
K.S.A. 2000
Supp. 74-49,123, and amendments thereto, 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, 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. 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 K.S.A. 2000 Supp. 74-49,123, and
amendments
thereto, such member may elect to effect such purchase by means
of a
single lump-sum payment in lieu of the increased amount of the
em-
ployee's contribution rate otherwise provided for in this act in
an amount
equal to the then present value of the benefits being purchased
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 retirement system. The lump-sum payment shall be made
imme-
diately upon being notified of the amount due. Upon receipt
of such pay-
ment 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 repurchase. Any member who repurchases all of the
mem-
ber's previously forfeited 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
K.S.A. 2000
Supp. 74-49,123 and amendments thereto, to purchase service credit
for
the previously forfeited 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. 37. K.S.A. 2000 Supp. 74-4963a
is hereby amended to read as
follows: 74-4963a. (1) Upon termination of employment prior to the
com-
pletion 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 member does not return to covered employment within
five
years, such member 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 prescribed 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 K.S.A. 2000 Supp.
74-49,123 and
amendments thereto, members who do not elect to repay
within 31 days
of return to covered employment may elect to purchase
previously for-
feited 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 member elects to repurchase. purchase
service credit for such pre-
viously forfeited service credit, subject to the provisions of
K.S.A. 2000
Supp. 74-49,123, and amendments thereto, 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, 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. 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 K.S.A. 2000 Supp. 74-49,123, and
amendments
thereto, such member may elect to effect such purchase by means
of a
single lump-sum payment in lieu of the increased amount of the
em-
ployee's contribution rate otherwise provided for in this act in
an amount
equal to the then present value of the benefits being purchased
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 retirement system. The lump-sum payment shall be made
imme-
diately upon being notified of the amount due. Upon receipt
of such pay-
ment 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 repurchase. Any member who repurchases all of the
mem-
ber's previously forfeited 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
K.S.A. 2000
Supp. 74-49,123 and amendments thereto, to purchase service credit
for
the previously forfeited 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. 38. K.S.A. 2000 Supp. 74-4964
is hereby amended to read as
follows: 74-4964. (1) A member may elect to have such member's
retire-
ment benefit paid under one of the options provided in this section
in
lieu of having it paid in the form stated in subsections (1) and
(2) of K.S.A.
74-4958 and amendments thereto. Such election must be made
before
the date of actual retirement. Only a specific individual person
may be
designated as a joint annuitant at the time of election of the
joint and 1/2
to joint annuitant survivor option, the joint and survivor option
and the
joint and 3/4 to joint annuitant survivor option. Under no
circumstances
may an option be changed or canceled nor the named joint
annuitant
changed after the date of actual retirement of the member.
(2) The amount of a retirement benefit
payable under an option shall
be based on the age of the member and, if applicable, the age of
the joint
annuitant, and shall be such amount as to be the actuarial
equivalent of
the retirement benefit otherwise payable under subsections (1) or
(2) of
K.S.A. 74-4958 and amendments thereto as prescribed under
subsection
(5). In no case shall the total amount of retirement benefit paid
under
any option provided in this section be more than 100% of the
retirement
benefit which would have been otherwise payable if no option had
been
elected under this section.
(3) If a member who was, up to the entry
date of such member's
employer, covered by a pension system under the provisions of
K.S.A.
13-14a01 to 13-14a14, inclusive or 14-10a01 through 14-10a15,
inclusive,
and amendments thereto so elects one of the options under this
section,
payment of such option shall be in lieu of any payments provided
in
subsection (3) of K.S.A. 74-4958 and amendments thereto.
(4) Such election of an option shall
become null and void upon the
death of a member prior to such member's retirement, except that if
a
member, who is eligible to retire in accordance with the provisions
of
subsections (1) and (2) of K.S.A. 74-4958 and amendments thereto,
dies
without having actually retired the member's spouse, if the spouse
is
beneficiary for the member's accumulated contributions, and no
benefits
are payable under subsections (1) and (2) of K.S.A. 74-4959 and
amend-
ments thereto, may elect to receive benefits under one of the
options
provided in this section, in lieu of receiving the member's
accumulated
contributions.
(5) The following retirement options
which are subject to the provi-
sions of K.S.A. 2000 Supp. 74-49,123 and amendments thereto, are
avail-
able:
(A) Joint and 1/2 to joint annuitant
survivor. A reduced retirement
benefit is payable to the retirant during the retirant's lifetime
in a monthly
amount equal to the product of (A) the monthly payment of the
retire-
ment annuity otherwise payable under K.S.A. 74-4958 and
amendments
thereto and (B) the percentage equal to 94.5% minus .2% for each
year
by which the age of the retirant's joint annuitant is less than the
retirant's
age, computed to the nearest whole year, or plus .2% for each year
by
which the age of the retirant's joint annuitant is more than the
retirant's
age, computed to the nearest whole year, with 1/2 of that monthly
amount
continued to the retirant's joint annuitant during such joint
annuitant's
remaining lifetime, if any, after the death of the retirant. In the
event that
the designated joint annuitant under this option predeceases the
retirant,
the amount of the retirement benefit otherwise payable to the
retirant
under this option shall be adjusted automatically to the retirement
benefit
which the retirant would have received if no option had been
elected
under this section.
(B) Joint and survivor. A reduced
retirement benefit is payable to
the retirant during the retirant's lifetime in a monthly amount
equal to
the product of (A) the monthly payment of the retirement annuity
oth-
erwise payable under K.S.A. 74-4958 and amendments thereto and
(B)
the percentage equal to 88% minus .4% for each year by which the
age
of the retirant's joint annuitant is less than the retirant's age,
computed
to the nearest whole year, or plus .4% for each year by which the
age of
the retirant's joint annuitant is more than the retirant's age,
computed to
the nearest whole year, with that monthly amount continued to the
joint
annuitant during the joint annuitant's remaining lifetime, if any,
after the
death of retirant. In the event that the designated joint annuitant
under
this option predeceases the retirant, the amount of the retirement
benefit
otherwise payable to the retirant under this option shall be
adjusted au-
tomatically to the retirement benefit which the retirant would have
re-
ceived if no option had been elected under this section.
(C) Joint and 3/4 to joint annuitant
survivor. A reduced retirement
benefit is payable to the retirant during the retirant's lifetime
in a monthly
amount equal to the product of (A) the monthly payment of the
retire-
ment annuity otherwise payable under K.S.A. 74-4958 and
amendments
thereto and (B) the percentage equal to 91% minus .3% for each year
by
which the age of the retirant's joint annuitant is less than the
retirant's
age, computed to the nearest whole year, or plus .3% for each year
by
which the age of the retirant's joint annuitant is more than the
retirant's
age, computed to the nearest whole year, with 3/4 of that monthly
amount
continued to the retirant's joint annuitant during such joint
annuitant's
remaining lifetime, if any, after the death of the retirant. In the
event that
the designated joint annuitant under this option predeceases the
retirant,
the amount of the retirement benefit otherwise payable to the
retirant
under this option shall be adjusted automatically to the retirement
benefit
which the retirant would have received if no option had been
elected
under this section.
(D) Life with 5 years certain. A
reduced retirement benefit is payable
to the retirant during the retirant's lifetime in a monthly amount
equal
to 99% of the monthly payment of the retirement benefit otherwise
pay-
able under K.S.A. 74-4958 and amendments thereto, and if the
retirant
dies within the five-year certain period, measured from the
commence-
ment of retirement benefit payments, such payments will be
continued
to the retirant's beneficiary during the balance of the five-year
certain
period.
(E) Life with 10 years certain. A
reduced retirement benefit is pay-
able to the retirant during the retirant's lifetime in a monthly
amount
equal to 98% of the monthly payment of the retirement benefit
otherwise
payable under K.S.A. 74-4958 and amendments thereto, and if the
retir-
ant dies within the ten-year certain period, measured from the
com-
mencement of retirement benefit payments, such payments will be
con-
tinued to the retirant's beneficiary during the balance of the
ten-year
certain period.
(F) Life with 15 years certain. A
reduced retirement benefit is pay-
able to the retirant during the retirant's lifetime in a monthly
amount
equal to 92% of the monthly payment of the retirement benefit
otherwise
payable under K.S.A. 74-4958 and amendments thereto, and if the
retir-
ant dies within the fifteen-year certain period, measured from the
com-
mencement of retirement benefit payments, such payments will be
con-
tinued to the retirant's beneficiary during the balance of the
fifteen-year
certain period.
(G) Lump sum payment at
retirement. (i) Pursuant to this option, the
member must specify a lump sum amount to be paid to the member
upon the member's retirement. The lump sum amount will be based
on
the actuarial present value of the benefit as provided in K.S.A.
74-4958,
and amendments thereto. The lump sum amount designated by the
mem-
ber must be in 10% increments and shall not exceed 1/2 of the
actuarial
present value of the benefit provided in K.S.A. 74-4958, and
amendments
thereto.
(ii) Pursuant to this option, the member
must elect to have the re-
maining actuarial present value paid in a monthly amount under the
pro-
visions of K.S.A. 74-4958, and amendments thereto, or subsections
(5)(A)
through (5)(F) of this section.
(iii) The amount of any
retirement benefit payable pursuant to this
subsection shall remain as provided in this subsection even
in the event
that the designated joint annuitant pursuant to subsections
(5)(A), (5)(B)
or (5)(C) predeceases the retirant. In the
event that the designated joint
annuitant pursuant to subsection (5)(A), (5)(B) or (5)(C) under
this option
predeceases the retirant, the amount of the retirement benefit
otherwise
payable to the retirant under this option shall be adjusted
automatically
to the retirement benefit which the retirant would have received
if no
option had been elected under this section.
(iv) The provisions of this subsection
shall be effective on and after
July 1, 2001.
(6) On and after July 1, 1996, if a
member with 20 or more years of
credited service dies before attaining retirement age, the
member's
spouse, if the spouse is the sole beneficiary for the member's
accumulated
contributions, may elect to receive benefits under one of the
options
provided in this section in lieu of receiving the member's
accumulated
contributions or in lieu of receiving benefits as provided in
K.S.A. 74-
4959 and amendments thereto. Payments under one of the options
pro-
vided in this section to the member's spouse if so elected, shall
commence
on the date that the member would have attained retirement age.
(7) Benefits payable to a joint annuitant
shall accrue from the first
day of the month following the death of a member or retirant and,
in the
case of the joint and 1/2 to joint annuitant survivor option, the
joint and
survivor option and the joint and 3/4 to joint annuitant survivor
option,
shall end on the last day of the month in which the joint annuitant
dies.
(8) The provisions of the law in effect
on the retirement date of a
member under the system shall govern the retirement benefit payable
to
the retirant and any joint annuitant, except, for retirement
benefits pay-
able after July 1, 1993, for retirants who retired prior to July 1,
1982, in
the event that the designated joint annuitant under the option
provided
in subsection (5)(A), (B) or (C), as applicable, predeceased the
retirant,
the amount of the retirement benefit otherwise payable to the
retirant
under the option provided in subsection (5)(A), (B) or (C), as
applicable,
shall be adjusted automatically to the retirement benefit which the
retir-
ant would have received if no option had been elected under this
section.
(9) Upon the death of a joint annuitant
who is receiving a retirement
benefit under the provisions of this section, there shall be paid
to such
joint annuitant's beneficiary an amount equal to the excess, if
any, of the
accumulated contributions of the retirant over the sum of all
retirement
benefit payments made to such retirant and such joint annuitant.
Such
joint annuitant shall designate a beneficiary by filing in the
office of the
retirement system such designation at the time of death of the
retirant.
If there is no named beneficiary of such joint annuitant living at
the time
of death of such joint annuitant, any amount provided for by this
section
shall be paid to, in order of preference as follows:
(A) The joint annuitant's surviving
spouse;
(B) the joint annuitant's dependent child
or children;
(C) the joint annuitant's dependent
parent or parents;
(D) the joint annuitant's nondependent
child or children;
(E) the joint annuitant's nondependent
parent or parents; or
(F) the estate of the deceased joint
annuitant.
(10) 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. 39. K.S.A. 2000 Supp. 74-4964a
is hereby amended to read as
follows: 74-4964a. (1) A member may elect to have such member's
re-
tirement benefit paid under one of the options provided in this
section
in lieu of having it paid in the form stated in subsections (1) and
(2) of
K.S.A. 74-4958 and amendments thereto. Such election must be
made
before the date of actual retirement. Only a specific individual
person
may be designated as a joint annuitant at the time of election of
the joint
and 1/2 to joint annuitant survivor option, the joint and survivor
option
and the joint and 3/4 to joint annuitant survivor option. Under no
circum-
stances may an option be changed or canceled nor the named joint
an-
nuitant changed after the date of actual retirement of the
member.
(2) The amount of a retirement benefit
payable under an option shall
be based on the age of the member and, if applicable, the age of
the joint
annuitant, and shall be such amount as to be the actuarial
equivalent of
the retirement benefit otherwise payable under subsections (1) or
(2) of
K.S.A. 74-4958 and amendments thereto as prescribed under
subsection
(5). In no case shall the total amount of retirement benefit paid
under
any option provided in this section be more than 100% of the
retirement
benefit which would have been otherwise payable if no option had
been
elected under this section.
(3) If a member who was, up to the entry
date of such member's
employer, covered by a pension system under the provisions of
K.S.A.
13-14a01 through 13-14a14, inclusive or 14-10a01 through 14-10a15,
in-
clusive, and amendments thereto so elects one of the options under
this
section, payment of such option shall be in lieu of any payments
provided
in subsection (3) of K.S.A. 74-4958 and amendments thereto.
(4) Such election of an option shall
become null and void upon the
death of a member prior to such member's retirement, except that if
a
member, who is eligible to retire in accordance with the provisions
of
subsections (1) and (2) of K.S.A. 74-4958 and amendments thereto,
dies
without having actually retired the member's spouse, if the spouse
is
beneficiary for the member's accumulated contributions, and no
benefits
are payable under subsections (1) and (2) of K.S.A. 74-4959 and
amend-
ments thereto, may elect to receive benefits under one of the
options
provided in this section, in lieu of receiving the member's
accumulated
contributions.
(5) The following retirement options
which are subject to the provi-
sions of K.S.A. 2000 Supp. 74-49,123 and amendments thereto, are
avail-
able:
(A) Joint and 1/2 to joint annuitant
survivor. A reduced retirement
benefit is payable to the retirant during the retirant's lifetime
in a monthly
amount equal to the product of (A) the monthly payment of the
retire-
ment annuity otherwise payable under K.S.A. 74-4958 and
amendments
thereto and (B) the percentage equal to 94.5% minus .2% for each
year
by which the age of the retirant's joint annuitant is less than the
retirant's
age, computed to the nearest whole year, or plus .2% for each year
by
which the age of the retirant's joint annuitant is more than the
retirant's
age, computed to the nearest whole year, with 1/2 of that monthly
amount
continued to the retirant's joint annuitant during such joint
annuitant's
remaining lifetime, if any, after the death of the retirant. In the
event that
the designated joint annuitant under this option predeceases the
retirant,
the amount of the retirement benefit otherwise payable to the
retirant
under this option shall be adjusted automatically to the retirement
benefit
which the retirant would have received if no option had been
elected
under this section.
(B) Joint and survivor. A reduced
retirement benefit is payable to
the retirant during the retirant's lifetime in a monthly amount
equal to
the product of (A) the monthly payment of the retirement annuity
oth-
erwise payable under K.S.A. 74-4958 and amendments thereto and
(B)
the percentage equal to 88% minus .4% for each year by which the
age
of the retirant's joint annuitant is less than the retirant's age,
computed
to the nearest whole year, or plus .4% for each year by which the
age of
the retirant's joint annuitant is more than the retirant's age,
computed to
the nearest whole year, with that monthly amount continued to the
joint
annuitant during the joint annuitant's remaining lifetime, if any,
after the
death of retirant. In the event that the designated joint annuitant
under
this option predeceases the retirant, the amount of the retirement
benefit
otherwise payable to the retirant under this option shall be
adjusted au-
tomatically to the retirement benefit which the retirant would have
re-
ceived if no option had been elected under this section.
(C) Joint and 3/4 to joint annuitant
survivor. A reduced retirement
benefit is payable to the retirant during the retirant's lifetime
in a monthly
amount equal to the product of (A) the monthly payment of the
retire-
ment annuity otherwise payable under K.S.A. 74-4958 and
amendments
thereto and (B) the percentage equal to 91% minus .3% for each year
by
which the age of the retirant's joint annuitant is less than the
retirant's
age, computed to the nearest whole year, or plus .3% for each year
by
which the age of the retirant's joint annuitant is more than the
retirant's
age, computed to the nearest whole year, with 3/4 of that monthly
amount
continued to the retirant's joint annuitant during such joint
annuitant's
remaining lifetime, if any, after the death of the retirant. In the
event that
the designated joint annuitant under this option predeceases the
retirant,
the amount of the retirement benefit otherwise payable to the
retirant
under this option shall be adjusted automatically to the retirement
benefit
which the retirant would have received if no option had been
elected
under this section.
(D) Life with 5 years certain. A
reduced retirement benefit is payable
to the retirant during the retirant's lifetime in a monthly amount
equal
to 99% of the monthly payment of the retirement benefit otherwise
pay-
able under K.S.A. 74-4958 and amendments thereto, and if the
retirant
dies within the five-year certain period, measured from the
commence-
ment of retirement benefit payments, such payments will be
continued
to the retirant's beneficiary during the balance of the five-year
certain
period.
(E) Life with 10 years certain. A
reduced retirement benefit is pay-
able to the retirant during the retirant's lifetime in a monthly
amount
equal to 98% of the monthly payment of the retirement benefit
otherwise
payable under K.S.A. 74-4958 and amendments thereto, and if the
retir-
ant dies within the ten-year certain period, measured from the
com-
mencement of retirement benefit payments, such payments will be
con-
tinued to the retirant's beneficiary during the balance of the
ten-year
certain period.
(F) Life with 15 years certain. A
reduced retirement benefit is pay-
able to the retirant during the retirant's lifetime in a monthly
amount
equal to 92% of the monthly payment of the retirement benefit
otherwise
payable under K.S.A. 74-4958 and amendments thereto, and if the
retir-
ant dies within the fifteen-year certain period, measured from the
com-
mencement of retirement benefit payments, such payments will be
con-
tinued to the retirant's beneficiary during the balance of the
fifteen-year
certain period.
(G) Lump sum payment at
retirement. (i) Pursuant to this option, the
member must specify a lump sum amount to be paid to the member
upon the member's retirement. The lump sum amount will be based
on
the actuarial present value of the benefit as provided in K.S.A.
74-4958a,
and amendments thereto. The lump sum amount designated by the
mem-
ber must be in 10% increments and shall not exceed 1/2 of the
actuarial
present value of the benefit provided in K.S.A. 74-4958a, and
amend-
ments thereto.
(ii) Pursuant to this option, the member
must elect to have the re-
maining actuarial present value paid in a monthly amount under the
pro-
visions of K.S.A. 74-4958a, and amendments thereto, or
subsections
(5)(A) through (5)(F) of this section.
(iii) The amount of any
retirement benefit payable pursuant to this
subsection shall remain as provided in this subsection even
in the event
that the designated joint annuitant pursuant to subsections
(5)(A), (5)(B)
or (5)(C) predeceases the retirant. In the
event that the designated joint
annuitant pursuant to subsection (5)(A), (5)(B) or (5)(C) under
this option
predeceases the retirant, the amount of the retirement benefit
otherwise
payable to the retirant under this option shall be adjusted
automatically
to the retirement benefit which the retirant would have received
if no
option had been elected under this section.
(iv) The provisions of this subsection
shall be effective on and after
July 1, 2001.
(6) On and after July 1, 1996, if a
member with 20 or more years of
credited service dies before attaining retirement age, the
member's
spouse, if the spouse is the sole beneficiary for the member's
accumulated
contributions, may elect to receive benefits under one of the
options
provided in this section in lieu of receiving the member's
accumulated
contributions or in lieu of receiving benefits as provided in
K.S.A. 74-
4959 and amendments thereto. Payments under one of the options
pro-
vided in this section to the member's spouse if so elected, shall
commence
on the date that the member would have attained retirement age.
(7) Benefits payable to a joint annuitant
shall accrue from the first
day of the month following the death of a member or retirant and,
in the
case of the joint and 1/2 to joint annuitant survivor option, the
joint and
survivor option and the joint and 3/4 to joint annuitant survivor
option,
shall end on the last day of the month in which the joint annuitant
dies.
(8) The provisions of the law in effect
on the retirement date of a
member under the system shall govern the retirement benefit payable
to
the retirant and any joint annuitant, except, for retirement
benefits pay-
able after July 1, 1993, for retirants who retired prior to July 1,
1982, in
the event that the designated joint annuitant under the option
provided
in subsection (5)(A), (B) or (C), as applicable, predeceased the
retirant,
the amount of the retirement benefit otherwise payable to the
retirant
under the option provided in subsection (5)(A), (B) or (C), as
applicable,
shall be adjusted automatically to the retirement benefit which the
retir-
ant would have received if no option had been elected under this
section.
(9) Upon the death of a joint annuitant
who is receiving a retirement
benefit under the provisions of this section, there shall be paid
to such
joint annuitant's beneficiary an amount equal to the excess, if
any, of the
accumulated contributions of the retirant over the sum of all
retirement
benefit payments made to such retirant and such joint annuitant.
Such
joint annuitant shall designate a beneficiary by filing in the
office of the
retirement system such designation at the time of death of the
retirant.
If there is no named beneficiary of such joint annuitant living at
the time
of death of such joint annuitant, any amount provided for by this
section
shall be paid to, in order of preference as follows:
(A) The joint annuitant's surviving
spouse;
(B) the joint annuitant's dependent child
or children;
(C) the joint annuitant's dependent
parent or parents;
(D) the joint annuitant's nondependent
child or children;
(E) the joint annuitant's nondependent
parent or parents; or
(F) the estate of the deceased joint
annuitant.
(10) 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. 40. K.S.A. 2000 Supp. 74-4965
is hereby amended to read as
follows: 74-4965. (1) Except as otherwise provided in this section,
each
participating employer shall, beginning with the first payroll
period for
services performed after the entry date, deduct from the
compensation
of each member 7% of such member's compensation as employee
con-
tributions, except that in the case of a member whose employment
is
covered by social security and the member is a member of the class
cer-
tified in the case of Brazelton v. Kansas public employees
retirement
system, 227 K. 443, 607 P.2d 510 (1980), the deduction from such
mem-
ber's compensation shall be reduced by the amount of such
member's
contributions to social security.
(2) 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 employee
contributions
shall be reduced because of contributions to social security.
(3) All such deductions shall be remitted
quarterly, or as the board
may otherwise provide, to the executive secretary
director for credit to
the Kansas public employees retirement fund and shall be credited
to the
members' individual accounts. Interest on each member's
accumulated
contributions at the rate determined under subsection (a) of K.S.A.
74-
4922 and amendments thereto shall be added annually to the
member's
individual account.
(4) For all payroll periods commencing on
or after the effective date
of this act, each participating employer shall deduct from the
compen-
sation of each member who has received 32 years of credited
service, 2%
of such member's compensation as employee contributions.
(5) (a) Subject to the provisions
of K.S.A. 2000 Supp. 74-49,123 and
amendments thereto, each participating employer, pursuant to the
pro-
visions of section 414(h)(2) of the federal internal revenue code,
shall
pick up and pay the contributions which would otherwise be payable
by
members as prescribed in subsection (1) commencing with the third
quar-
ter of 1984. The contributions so picked up shall be treated as
employer
contributions for purposes of determining the amounts of federal
income
taxes to withhold from the member's compensation.
(b) Member contributions picked up by the
employer shall be paid
from the same source of funds used for the payment of compensation
to
a member. A deduction shall be made from each member's
compensation
equal to the amount of the member's contributions picked up by
the
employer, provided that such deduction shall not reduce the
member's
compensation for purposes of computing benefits under the
system.
(c) Member contributions picked up by the
employer shall be remit-
ted quarterly, or as the board may otherwise provide, to the
executive
secretary director for credit to the Kansas
public employees retirement
fund. Such contributions shall be credited to a separate account
within
the member's individual account so that amounts contributed by
the
member commencing with the third quarter of 1984 may be
distinguished
from the member contributions picked up by the employer. Interest
shall
be added annually to members' individual accounts.
Sec. 41. K.S.A. 2000 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
director 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
instructions 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
K.S.A. 2000 Supp. 74-49,114a, shall be reflected in the employer
contri-
bution rate in the fiscal year immediately following such
enactment.
Sec. 42. K.S.A. 74-4978h is hereby
amended to read as follows: 74-
4978h. Beginning with the first payment of compensation for
services of
a patrolman after becoming a special member of the Kansas police
and
firemen's retirement system, the employer shall deduct from the
com-
pensation of such special member 8% as employee contribution.
Such
deductions shall be remitted, as the board may provide, to the
executive
secretary director for credit to the Kansas
public employees retirement
fund, and such deduction shall be credited to the member's
individual
account.
Sec. 43. K.S.A. 2000 Supp. 74-4989
is hereby amended to read as
follows: 74-4989. (1) (a) Except as provided in (b), pursuant to
the pro-
visions of K.S.A. 2000 Supp. 74-49,128, and amendments thereto,
upon
the death of a retirant, the board of trustees of the Kansas public
em-
ployees retirement system shall pay a lump-sum death benefit
to: The
retirant's beneficiary which shall not exceed $4,000 for such
retirant, less
any amount payable for funeral benefits under the applicable
provisions
of any local police or fire pension plan, as defined by subsection
(c) of
K.S.A. 12-5001 and amendments thereto; or to a funeral
establishment
as directed by the retirant and filed in the office of the
system prior to
such retirant's death.
(b) Notwithstanding the provisions of
K.S.A. 74-4923 and amend-
ments thereto, any amounts owed the system shall be deducted from
such
lump-sum death benefit.
(2) As used in this section, ``retirant''
means any person who is a
member or special member of the Kansas public employees
retirement
system, the Kansas police and firemen's retirement system, the
state
school retirement system or the retirement system for judges and
who
has retired.
Sec. 44. K.S.A. 2000 Supp. 74-4998c
is hereby amended to read as
follows: 74-4998c. (a) Except as otherwise provided in this
section, for all
payroll periods commencing on or after July 1, 1988, but prior to
the end
of the term of office in which such elected official is serving on
the ef-
fective date of this act, each elected state official shall
contribute 5% of
the elected state official's salary for each payroll period to the
fund. For
all payroll periods commencing on or after July 1, 1988, but prior
to the
end of the term of office in which such elected official is serving
on the
effective date of this act, the employer shall deduct from the
compen-
sation of each member who has received 30 years of credited service
2%
of such member's compensation as employee contributions. Each
elected
state official shall make contributions as provided in K.S.A.
74-4919 and
amendments thereto in lieu of contributions as provided in this
section,
for all payroll periods during any term of office of such elected
state
official which commences after the effective date of this act. The
provi-
sions of K.S.A. 74-4919c, 74-4919d, 74-4919e, 74-4919h or 74-4919j
and
amendments thereto shall apply to elected state officials, except
that,
subject to the provisions of K.S.A. 2000 Supp. 74-49,123 and
amendments
thereto, such elected state officials shall purchase prior and
participating
service credit at the rate of 10% or 15% for the payroll periods
com-
mencing on or after July 1, 1988, but prior to the end of the term
of
office in which such elected official is serving on the effective
date of this
act.
(b) The director of accounts and reports
shall deduct the amount
each elected state official is to contribute to the fund on the
payroll of
each elected state official for each payroll period showing the
amount
deducted and its credit to the fund. Such deductions shall be
remitted as
the board may provide, to the executive secretary
director of the Kansas
public employees retirement system for credit to the fund to the
credit
of the elected state official's individual account therein.
(c) For purposes of contributions to and
benefits under the Kansas
public employees retirement system of such elected state officials
who
are members of the legislature, the salary or compensation of such
elected
state official shall be as provided in K.S.A. 74-4995 and
amendments
thereto.
(d) (1) Subject to the provisions
of K.S.A. 2000 Supp. 74-49,123 and
amendments thereto, the state of Kansas pursuant to the provisions
of
section 414(h)(2) of the federal internal revenue code of 1986, as
in effect
on July 1, 1998, shall pick up and pay the contributions which
would
otherwise be payable by elected state officials as prescribed in
subsection
(a) commencing with the effective date of this act. Contributions
so
picked up shall be treated as employer contributions for purposes
of de-
termining the amounts of federal income taxes to withhold from
the
elected state official's compensation.
(2) Member contributions picked up by the
state shall be paid from
the same source of funds used for the payment of compensation to
an
elected state official. A deduction shall be made from each elected
state
official's compensation equal to the amount of the elected state
official's
contributions picked up by the state, provided that such deduction
shall
not reduce the elected state official's compensation for purposes
of com-
puting benefits under the retirement system.
(3) Member contributions picked up by the
state shall be remitted as
the board may provide, to the executive secretary
director for credit to
the Kansas public employees retirement fund.
(e) No former member of the legislature
shall be required to make
contributions as otherwise required by this section.
Sec. 45. K.S.A. 74-49,102 is hereby
amended to read as follows: 74-
49,102. Beginning with the first payroll for services performed
after July
1, 1975, of each person who is a member of the Kansas public
employees
retirement system pursuant to subsection (b) of K.S.A. 74-4999
and
amendments thereto, the employer shall deduct from the
compensation
of such person 4% of such person's compensation as employee
contri-
butions. Such deductions shall be remitted quarterly, or as the
board of
trustees of the Kansas public employees retirement system may
otherwise
provide, to the executive secretary
director of the system for credit to the
Kansas public employees retirement fund. Such deductions shall be
cred-
ited to the members' individual accounts and interest shall be
added an-
nually to such accounts beginning as provided in subsection (d) of
K.S.A.
74-49,103 and amendments thereto.
Sec. 46. K.S.A. 2000 Supp.
74-49,128 is hereby amended to read as
follows: 74-49,128. The lump sum death benefits, survivor benefits
and
funeral expenses that are provided to surviving spouses, minor
children
and other beneficiaries as a result of a nonduty related
death or retirant
death pursuant to K.S.A. 13-14a07, 13-14a11,
14-10a07, 14-10a11, 74-
4958, 74-4958a, 74-4959, 74-4960, 74-4960a and 74-4989, and
amend-
ments thereto, are in the nature of life insurance; are provided by
the
participating employers for the protection of members' spouses,
survivors
or beneficiaries as provided in those sections; and are not subject
to reg-
ulation of the state of Kansas department of insurance. The
provisions of
this section shall be effective on and after July 1, 2000.
Sec. 47. K.S.A. 2000 Supp.
75-37,132 is hereby amended to read as
follows: 75-37,132. (a) Except as provided in this section, all
contracts for
professional and consultant services, shall be negotiated in
accordance
with the provisions of K.S.A. 75-37,102, and amendments
thereto.
(b) The provisions of subsection (a)
shall not apply to any contract
for professional or consultant services that the director of
purchases de-
termines meets one or more of the criteria established in
subsections (a)
and (h) of K.S.A. 75-3739, and amendments thereto. When the
director
of purchases approves a contract for professional or consultant
services
under this subsection, the director may delegate authority to the
agency
to enter into the contract under conditions and procedures
prescribed by
the director.
(c) The provisions of subsection (a)
shall not apply to any contract for
professional or consultant services that is not anticipated to
exceed
$25,000 in any fiscal year. Such a contract shall be entered into
by the
state agency on the basis of competitive negotiations with at least
two
individuals or firms unless the head of the agency determines that
com-
petitive negotiations are not in the best interest of the state.
The agency
head shall make a report to the director of purchases at least once
in each
calendar quarter during the term of each contract for professional
or
consultant services that exceeds $5,000 and that was entered into
without
competitive negotiations.
(d) The director of purchases shall
prepare a detailed report at least
once in each calendar quarter during the term of each contract for
pro-
fessional or consultant services that exceeds $5,000 that is
entered into
under subsection (b) and all contracts for professional or
consultant serv-
ices reported to the director under subsection (c). The director of
pur-
chases shall submit such report to the legislative coordinating
council, the
chairperson of the committee on ways and means of the senate, the
chair-
person of the committee on appropriations of the house of
representatives
and the chairperson of the Kansas performance review board.
(e) All contracts for architectural
services, engineering services, con-
struction management or ancillary technical services entered into
by a
state agency shall be entered into in accordance with the
provisions of
K.S.A. 75-430a, 75-1250 through 75-1266 and 75-5801 through
75-5807,
and amendments thereto.
(f) All contracts for professional
services entered into by the board of
governors of the health care stabilization fund shall be entered
into in
accordance with the provisions of K.S.A. 40-3410 and 40-3411,
and
amendments thereto.
(g) Upon written certification from the
commissioner of insurance to
the director of purchases and the legislative budget committee that
an
emergency exists and the best interests of the state would be
jeopardized
by compliance with subsection (a), the provisions of subsections
(a) and
(c) shall not apply to contracts for legal services performed under
article
36 of chapter 40 of the Kansas Statutes Annotated.
(h) In the case of any contract for
professional services or consultant
services for the board of trustees of the Kansas public
employees retire-
ment system that is negotiated in accordance with the provisions
of K.S.A.
75-37,102, and amendments thereto:
(1) The negotiating committee shall be
composed of the members of
the board of trustees, notwithstanding the provisions of
subsection (b) of
K.S.A. 75-37,102, and amendments thereto, to the contrary;
and
(2) the board of trustees shall report
each contract for professional
services or consultant services entered pursuant to this
subsection to the
director of purchases, including the rationale of the board of
trustees if
the bid or proposal selected by the board of trustees was not
the lowest
cost bid or proposal submitted and a report of such contract and
such
rationale shall be included in the report submitted by the
director of pur-
chases pursuant to subsection (e) of K.S.A. 75-37,102, and
amendments
thereto.
Sec. 48. K.S.A. 2000 Supp.
75-37,135 is hereby amended to read as
follows: 75-37,135. (a) (1) Prior to entering a contract for
legal services
where the amount of the fees paid to an attorney or firm of
attorneys
reasonably may exceed $1,000,000, the director of purchases shall
submit
the proposed request for proposal to the legislative budget
committee.
Within 30 days after submission of such request for proposal, the
com-
mittee may hold a public hearing on the proposed request for
proposal
and shall issue a report to the director of purchases. The report
shall
include any proposed changes to the proposed request for proposal
sug-
gested by the committee. The committee is not authorized to waive
the
evidentiary privileges of the state, or any of the persons or
entities that
state attorneys are representing or acting in concert with in any
litigation
or anticipated litigation. The committee, the director of purchases
and
their employees shall take all reasonable steps to protect such
privileges.
The director of purchases shall review the report and adopt a final
request
for proposal as deemed appropriate in view of the report and shall
file
the final request for proposal with the legislative budget
committee.
(2) If the proposed request for
proposal does not contain the changes
proposed by the committee, the director of purchases shall submit
with
the final request for proposal a letter stating the reasons why
such pro-
posed changes were not adopted. The director of purchases shall
not
release the final request for proposal until at least 10 days after
the date
of submission of the final request for proposal to the legislative
budget
committee.
(3) If the legislative budget
committee makes no suggested changes
to the proposed request for proposal or fails to report any
suggested
changes within 60 days of the submission of the proposed request
for
proposal to such committee, the director of purchases may release
the
request for proposal.
(b) After awarding a contract for legal
services where the amount of
the fees paid to an attorney or firm of attorneys reasonably may
exceed
$1,000,000, the director of purchases shall submit the contract to
the
legislative budget committee. Within 30 days after submission of
such
contract, the committee may hold a public hearing on the contract
and
shall issue a report to the director of purchases. The report shall
include
any concerns of the committee.
(c) The provisions of this section shall
not apply in any action in which
the state of Kansas or any state agency, officer or employee is a
defendant
and a contract for legal services is to be entered. The director of
purchases
shall prepare a report each calendar quarter while such legal
proceeding
is in progress. Such report shall include the case citation and the
date
upon which the action was filed. The director of purchases shall
submit
the report to the legislative coordinating council, the chairperson
of the
committee on ways and means of the senate, the chairperson of the
com-
mittee on appropriations of the house of representatives and the
chair-
person of the Kansas performance review board.
(d) The director of purchases shall
prepare a detailed report at least
once in each calendar quarter of each legal proceeding which has
been
completed and for which a contingency fee arrangement was
entered.
Such report shall disclose the hours worked on the case, the
expenses
incurred, the aggregate fee amount and a breakdown as to the
hourly
rate, based on hours worked divided into fee recovered, less
expenses.
The director of purchases shall submit the report to the
legislative coor-
dinating council, the chairperson of the committee on ways and
means
of the senate, the chairperson of the committee on appropriations
of the
house of representatives and the chairperson of the Kansas
performance
review board.
(e) Reasonable attorney fees to be paid
by the state or defendant in
an action where the attorney was hired by the state with a
contingency
fee agreement shall be approved by the judge after an evidentiary
hearing
and prior to final disposition of the case by the district court.
Any indi-
vidual may provide information to the court and be heard before the
court
with regard to the reasonableness of attorney fees paid by the
state or
defendant under the contingency fee agreement. Compensation for
rea-
sonable attorney fees for services performed in an appeal of a
judgment
in any such action to the court of appeals shall be approved after
an
evidentiary hearing by the chief judge or by the presiding judge of
the
panel hearing the case. Compensation for reasonable attorney fees
for
services performed in an appeal of a judgment in any such action to
the
supreme court shall be approved after an evidentiary hearing by the
de-
partmental justice for the department in which the appeal
originated. In
determining the reasonableness of such compensation, the judge or
jus-
tice shall consider the following:
(1) The time and labor required, the
novelty and difficulty of the
questions involved and the skill requisite to perform the legal
service
properly.
(2) The likelihood, if apparent to the
client, that the acceptance of
the particular employment will preclude other employment by the
attor-
ney.
(3) The fee customarily charged in the
locality for similar legal serv-
ices.
(4) The amount involved and the results
obtained.
(5) The time limitations imposed by the
client or by the circum-
stances.
(6) The nature and length of the
professional relationship with the
client.
(7) The experience, reputation and
ability of the attorney or attorneys
performing the services.
(8) Whether the fee is fixed or
contingent.
(f) In the case of any contract for
legal services for the board of trus-
tees of the Kansas public employees retirement system negotiated
or to be
negotiated in accordance with the provisions of K.S.A.
75-37,102, and
amendments thereto, where the amount of fees paid to an attorney
or to
a firm of attorneys reasonably may exceed $1,000,000, references
to the
``director of purchases'' in subsections (a), (b) and (c) of
this section shall
be construed to apply to the board of trustees of the Kansas
public em-
ployees retirement system and each duty or function prescribed
in such
subsections shall be assumed and performed by the board of
trustees of
the Kansas public employees retirement system.
New Sec. 49. The retirement
benefit, pension or annuity payments
to each retirant of the state school retirement system who retired
prior
to January 1, 1971, and who had at least 20 years or more of
service credit,
shall for retirement benefit, pension or annuity payments accruing
after
June 30, 2001, be in an amount as otherwise provided by law but
shall
be an amount at least equal to $500.
New Sec. 50. Any judge who has
retired or who retires as provided
in K.S.A. 20-2608, and amendments thereto, and who has entered
into
agreement with the Kansas supreme court to perform assigned
judicial
duties as provided pursuant to K.S.A. 20-2622, and amendments
thereto,
may elect to purchase, subject to the provisions of K.S.A. Supp.
74-
49,123, service credit for such service under the retirement system
for
judges. Such purchase shall be by means of a single lump-sum
payment.
Such lump-sum payment shall be an amount determined by the
actuary
using the judge's current age, the final average salary of such
judge at the
time of such judge's retirement, the form of the payment of the
annuity
to such judge including any retirement option elected by such judge
pur-
suant to K.S.A. 20-2610a, and amendments thereto, and the
actuarial
assumptions and tables then in use by the system.
New Sec. 51. Except as otherwise
provided, any active contributing
member of the retirement system who at one time had the state
board
of regents assist such member in the purchase of retirement
annuities as
provided in K.S.A. 74-4925, and amendments thereto and who
withdrew
such member's accumulated contributions upon the termination of
such
employment as provided in K.S.A. 74-4925, and amendments
thereto,
may purchase participating service credit for any waiting period
required
pursuant to K.S.A. 74-4925, and amendments thereto. Such member
may
purchase, subject to the provisions of K.S.A. 2000 Supp. 74-49,123,
and
amendments thereto, such service credit by making a single
lump-sum
payment in an amount determined by the actuary using (1) the
member's
then current annual rate of compensation, (2) the actuarial
assumptions
and tables currently in use by the system and (3) the member's
attained
age.
Sec. 52. K.S.A. 74-4934, 74-4978h and 74-49,102
and K.S.A. 2000
Supp. 13-14a07, 14-10a07, 20-2603, 20-2610a, 74-4902, 74-4904,
74-
4908, 74-4911e, 74-4914, 74-4914e, 74-4915, 74-4915b, 74-4915c,
74-
4916, 74-4918, 74-4918a, 74-4919, 74-4919b, 74-4920, 74-4921,
74-4922,
74-4925, 74-4927, 74-4927f, 74-4927h, 74-4932, 74-4940, 74-4957,
74-
4957a, 74-4958, 74-4958a, 74-4959, 74-4960, 74-4960a, 74-4963,
74-
4963a, 74-4964, 74-4964a, 74-4965, 74-4967, 74-4989, 74-4998c,
74-
49,128, 75-37,132 and 75-37,135 are hereby repealed.
Sec. 53. This act shall take effect and be in
force from and after its
publication in the Kansas register.
Approved May 22, 2001.
Published in the Kansas Register May 31, 2001.
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