Brief (1)
The bill would remove a statutory prohibition that the Kansas Public Employees Retirement System (KPERS) Board of Trustees shall not invest funds in any banking institution, savings and loan association, or credit union.
Background
The statutory prohibition against KPERS investments in financial institutions was added in 1992 as a recommendation of the Joint Committee on KPERS Investment Practices after it had reviewed a failed investment in Home Savings Association of Kansas City.
The KPERS Board of Trustees requested HB 2022 and the bill was recommended for introduction by the Joint Committee on Pensions, Investments and Benefits in its annual report to the 2001 Legislature. The bill is considered trailer legislation to a constitutional amendment to Article 13, Section 2 of the Kansas Constitution that was approved by the state's voters at the November 2000 general election. The amendment modified the prohibition against the state being a stockholder in any banking institution and will allow retirement systems, such as KPERS, to own stocks in banking institutions.
1. *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/fulltext.cgi