Minutes for SB200 - Committee on Financial Institutions and Insurance

Short Title

Increasing retirement benefit cap and decreasing employee contribution rate for members of the Kansas Police and Firemen's Retirement System in certain circumstances.

Minutes Content for Thu, Mar 7, 2019

Chairman Olson opened the hearing on the bill. He called for a Revisor of Statutes overview of the bill. Eileen Ma provided the overview stating that the bill would increase the retirement benefit cap for Kansas Police & Fire (KP&F) members.

Chairman Olson called for proponent testimony on the bill.

Alan Conroy quantified the effect of the proposed benefit cap and the costs of the bill from the perspective of the KPERS and KP&F retirement funds.

(Attachment 1)

Robert Wing compared the implications of a member changing from KPERS to KP&F retirement funds and explained why the proposed changes are needed.

(Attachment 2)

Ed Klumpp pointed out that the primary benefit of the proposed changes would be an increase in department member retention. He asserted that Police and Fire organizations struggle to retain their members to avoid incurring the high costs of having to recruit and retrain new professionals. He addressed the costs to local governments as relatively insignificant compared to the tens of thousands of dollars in training and equipment costs involved with filling a vacancy. He also pointed out that local governmental officials need to be reminded that they do not need to account for both employer and employee social security contributions for members of KP&F programs.

(Attachment 3)

Written Only Proponent Testimony:

Mik Shanks, Kansas State Lodge - Fraternal Order of Police

(Attachment 4)

Chairman Olson closed the hearing on the bill.