House Status:
Senate Status:
Senate Status:
Minutes for SB172 - Committee on Ways and Means
Short Title
Increasing the KPERS lump-sum death benefit from $4,000 to $6,000.
Minutes Content for Wed, Feb 15, 2023
Chairperson Billinger opened the hearing on SB 172. David Wiese, Office of the Revisor of Statutes, provided an overview of the bill. (Attachment 14)
Alan Conroy, Executive Director of the Kansas Public Employees Retirement System (KPERS), provided an overview of the financial aspects of the bill. The death benefit is a taxable benefit so members may select a funeral home as the designated benefit. The death benefit was added by the 1982 Legislature and was adjusted five times, with the most recent adjustment being in 1993. In FY 2022, there were approximately 3,500 KPERS retiree deaths, which totals approximately $14.0 million in retiree death benefits. (Attachment 15)
Senator Carolyn McGinn testified as a proponent of the bill. The current amount of the benefit hasn't changed in thirty years while the cost of cremations and burials have increased greatly. This would not cover the full amount but would help reduce the burden. Senator McGinn responded to questions from Committee members. (Attachment 16)
Pam Scott, Kansas Funeral Directors Association, spoke in favor of the bill. The average cost of a funeral with viewing and burial is $9,420 and the average cost of a funeral with viewing and cremation is $6,970. These costs do not include cemetery costs. The death benefit can be assigned to a funeral home prior to death to assure the benefits go towards the cost of a funeral. Ms. Scott responded to questions from Committee members. (Attachment 17)
Timothy Graham, Kansas National Education Association, testified in support of the bill as he represents retired teachers. The cost of living and of funerals continues to rise and this would help make them whole. While his organization supports this bill, they strongly support there being a cost of living adjustment in addition to this change. Mr. Graham responded to questions from Committee members. (Attachment 18)
Ernie Claudel, Kansas Coalition of Public Retirees, testified as a neutral conferee. This would certainly be a benefit to the survivors of retirees, however, their push is for expanding KPERS benefits for the living. There has been no permanent benefit increase in 25 years and they would like to see a cost of living adjustment. (Attachment 19)
There being no further conferees, Chairperson Billinger closed the hearing on SB 172.
Chairperson Billinger adjourned the meeting at 12:02 pm. The next meeting will be February 17, 2023.
