Brief (1)
House Sub. for SB 138 would incorporate a number of different policy changes regarding public employee retirement and benefits. It also would codify a Supreme Court decision relative to the State Civil Service Board and appeal procedures.
First, the original provisions of SB 138 as passed by the Senate are retained. The legislation would clarify that the State Civil Service Board has the authority to modify agency disciplinary actions proposed against classified state employees. It also would clarify that additional time will not be granted beyond the current deadline of 30 days from the effective date of the proposed disciplinary action to file an appeal with the Civil Service Board so long as the notice of the effective date was mailed to the state employee.
Second, new provisions would address the closure of the Kansas Industries for the Blind (KIB) and the transfer of the Reception and Diagnostic Unit (RDU) to El Dorado. The legislation would prescribe procedures and provide benefits for state employees who are laid off, terminated, or transferred from employment at the KIB, or at the RDU. In addition, the disposition of KIB assets would be addressed and a KIB Contingency Fund would be established in the State Treasury. A grant program administered by the SRS Division of Services to the Blind would be funded from this source in order to provide a facility offering industrial employment for persons who are blind. Special benefits would be authorized for state employees at both institutions who are affected: compensation for 20 percent of sick leave; state-paid heath care; an extended death benefit; in-state moving expenses if transferred to another location; and compensation for 40 to 160 hours of pay, depending upon length of state service, if laid off. An exemption from the prohibition on certain contracts to former state employees who are laid off also would be included.
Third, other new provisions would allow certain legislative and other local public officials to retire from a second KPERS participating employer and be able to continue serving in an elective position. Current KPERS law requires a member, in order to retire, to be off the payroll of all KPERS participating employers for at least 30 days, thus requiring that a member resign from both participating employers. The first provision added to the bill would permit members of the Legislature, who also are employed by another KPERS participating employer, to retire from the other job and to continue to serve in the Legislature. The other provision would allow local elected officials to retire from a KPERS participating employer and to continue to serve as an elected public official. Only members of the Legislature would have their retirement benefit recalculated after leaving the Legislature under provisions added to the bill.
Fourth, additional provisions were added to allow state corrections personnel who are covered by KPERS to retire under an 85-point plan. Currently, all other state and school employees covered by KPERS may retire without penalty if they meet the requirement based on a combination of age and years of service equaling 85. Group A and Group B correctional employees are covered by different provisions of KPERS law that allow retirement at age 55 or 60 without penalty for members of the different groups.
Background
In a 1998 case, Kansas Department of Transportation vs. Humphreys, the Kansas Supreme Court ruled that the Civil Service Board has the authority to modify disciplinary actions proposed by a state agency against classified state employees. An earlier District Court decision had held the Board only had the authority to accept or reject the proposed action. SB 138 was requested by the Board to bring the statutory language in line with the Humphreys decision.
Hearings on the bill during last year and this year included proponents from the State Civil Service Board and the Division of Personnel Services. A representative of the Kansas Association of Public Employees expressed cautious support.
An amendment adopted by the Senate Ways and Means Committee was suggested by the Revisor of Statutes staff to make the language more consistent with the Humphreys decision.
The Kansas Select 2000 Committee recommended the SB 138 provisions as passed by the Senate and also added additional provisions not specifically related to the original version of the bill. House Sub. for SB 138 reflects both the original and additional provisions. The House Committee amendments included provisions from HB 3018, HB 2839, HB 3029, and SB 275. The Budget Director had submitted fiscal notes for SB 138 (CY 1999), SB 275 (CY 1999), and HB 2839 (CY 2000). The original fiscal note on SB 138 indicates that the bill may result in somewhat lower costs for back pay in cases where a disciplinary action is modified instead of rejected. The original fiscal note on SB 275 shows both an actuarial impact of $500,000 and an annual fiscal impact of approximately $71,000 in order to pay for an increased employer contribution rate to finance an 85-point plan for correctional employees. The fiscal note on HB 2839 indicates that actuarial ramifications would be to benefit the System, according to KPERS. The initial retirement benefit would be based on a salary that is lower than it would be if it included legislative compensation. In addition, legislators would give up these higher benefits while they remained in the Legislature. After retiring from the Legislature, the benefit would be recalculated to take into account legislative compensation at the time of the original, earlier retirement from the other KPERS participating employer. No fiscal note was available on HB 3018 or HB 3029. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html