CHAPTER 63
SENATE BILL No. 375
An Act concerning retirement; relating to schools and
community colleges; early retire-
ment incentive programs; amending K.S.A. 2001 Supp. 71-212 and
72-5395 and re-
pealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2001 Supp. 71-212
is hereby amended to read as
follows: 71-212. (a) The board of trustees of any community college
may
establish an early retirement incentive program for the benefit of
the
employees of the community college for retirement of employees
prior
to the normal retirement age of 65 years. As used in this act, an
``early
retirement incentive program'' is a program that provides cash
payments,
either in the form of a lump-sum payment at the beginning of the
fiscal
year, or in regular payments during the fiscal year. No payment
pursuant
to an early retirement incentive program as provided in this
section shall
be made prior to the retirement under the provisions of the Kansas
public
employees retirement system of any such employee of the
community
college. Commencing in the fiscal year that commenced in
calendar year
1996 and at least once every three years thereafter, each
board that has
established an early retirement incentive program as
provided in this sec-
tion shall employ and pay an actuary who is a member of the
American
academy of actuaries and the society of actuaries and is an
enrolled ac-
tuary under the employees retirement income security act to
conduct an
actuarial valuation of the liabilities of the program,
except that the initial
1996 actuarial valuation shall not be required as provided
in this section
of any board that has conducted such an actuarial valuation
of its early
retirement incentive program within the preceding 18 months
of the ef-
fective date of this act. Any early retirement incentive
program estab-
lished as provided in this section after the effective date
of this act shall
conduct the actuarial valuation as required in this section
within six
months of such establishment and at least once every three
years there-
after. Each actuarial valuation required by this section
shall be reported
to the joint committee on pensions, investments and
benefits by such
board no later than January 1, 2000.
(b) The board of trustees of any
community college shall not com-
mence any new early retirement incentive programs from the
effective
date of this act until July 1, 2000.
(c) An early retirement incentive
program established pursuant to
subsection (a) prior to the effective date of this act is
hereby declared
valid.
(b) Commencing in the fiscal year that
commenced in calendar year
2002 and every three years thereafter, each board that has
established an
early retirement incentive program shall prepare and submit a
report to
the state board of regents related to such early retirement
incentive pro-
gram. Such report shall contain: (1) Three years of budget data
of such
program, including actual costs, and a current year and future
years'
budget data for three to five years; (2) current costs and
benefits of such
program and projected costs and benefits of such program for
three to
five years; (3) current and projected number of participants in
such pro-
gram; and (4) such other information as required by the state
board of
regents. The state board of regents shall design and distribute
forms to
carry out the provisions of this act to the board of trustees of
each com-
munity college that has established an early retirement
incentive program.
The state board of regents shall compile and prepare a summary
report
which shall be submitted to the joint committee on pensions,
investments
and benefits no later than January 1 of the year that follows
the end of
the fiscal year in which the reporting is required as provided
in this
subsection.
Sec. 2. K.S.A. 2001 Supp. 72-5395
is hereby amended to read as
follows: 72-5395. (a) The board of education of any school district
may
establish an early retirement incentive program for the benefit of
the
employees of the district for retirement prior to the normal
retirement
age of 65 years. As used in this act, an ``early retirement
incentive pro-
gram'' is a program that provides cash payments, either in the form
of a
lump-sum payment at the beginning of the fiscal year, or in regular
pay-
ments during the fiscal year. No payment pursuant to an early
retirement
incentive program as provided in this section shall be made prior
to the
retirement under the provisions of the Kansas public employees
retire-
ment system for any employee of the district. Commencing in
the fiscal
year that commenced in calendar year 1996 and at least once
every three
years thereafter, each board that has established an early
retirement in-
centive program as provided in this section shall employ
and pay an ac-
tuary who is a member of the American academy of actuaries
and the
society of actuaries and is an enrolled actuary under the
employees re-
tirement income security act to conduct an actuarial
valuation of the li-
abilities of the program, except that the initial 1996
actuarial valuation
shall not be required as provided in this section of any
board that has
conducted such an actuarial valuation of its early
retirement incentive
program within the preceding 18 months of the effective
date of this act.
Any early retirement incentive program established as
provided in this
section after the effective date of this act shall conduct
the actuarial val-
uation as required in this section within six months of
such establishment
and at least once every three years thereafter. Each
actuarial valuation
required by this section shall be reported to the joint
committee on pen-
sions, investments and benefits by such board no later than
January 1,
2000.
(b) The board of education of any
school district shall not commence
any new early retirement incentive programs from the
effective date of
this act until July 1, 2000.
(c) An early retirement incentive
program established pursuant to
subsection (a) prior to the effective date of this act is
hereby declared
valid.
(b) Commencing in the fiscal year that
commenced in calendar year
2002 and every three years thereafter, each board that has
established an
early retirement incentive program shall prepare and submit a
report to
the state board of education related to such early retirement
incentive
program. Such report shall contain: (1) Three years of budget
data of such
program, including actual costs, and current year and future
years'
budget data for three to five years; (2) current costs and
benefits of such
program and projected costs and benefits of such program for
three to
five years; (3) current and projected number of participants in
such pro-
gram; and (4) such other information as required by the state
board of
education. The state board of education shall design and
distribute forms
to carry out the provisions of this act to the board of
education of each
school district that has established an early retirement
incentive program.
The state board of education shall compile and prepare a summary
report
which shall be submitted to the joint committee on pensions,
investments
and benefits no later than January 1 of the year that follows
the end of
the fiscal year in which the reporting is required as provided
in this
subsection.
Sec. 3. K.S.A. 2001 Supp. 71-212
and 72-5395 are hereby repealed.
Sec. 4. This act shall take effect
and be in force from and after its
publication in the statute book.
Approved April 10, 2002.
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