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Minutes for SB274 - Committee on Ways and Means
Short Title
Eliminating KPERS working-after-retirement employer contribution requirement when first employing retirants aged 65 or older.
Minutes Content for Tue, Mar 10, 2020
Chairperson McGinn opened the hearing on SB 274. David Wiese provided an overview of the bill and responded to questions from Committee members. (Attachment 1)
Senator Bruce Givens, 14th District, testified as a proponent of the bill. He became aware of this situation because of an educator he knows returned to work after retiring and then found out there was a salary penalty for returning to work. Every entity has to pay the surcharge but some pay by reducing the employee's salary and others pay out of operating funds. Senator Givens responded to questions from Committee members. (Attachment 2)
Debra Barnes, League of Kansas Municipalities, spoke in support of the bill. She doesn't believe Kansas municipalities will change their recruiting procedures based on this but it would be a useful tool for cities to use when filling interim manager positions. The skill sets in this age group would help them fill in on short notice to cover gaps. (Attachment 3)
Alan Conroy, Executive Director, Kansas Public Employees Retirement System, spoke as a neutral conferee. This only applies to KPERS retirees who retire after 65 and then come back to work. There are also IRS requirements that this cannot be arranged ahead of time. Previous changes made by the legislature from 2015 to 2017 made things very complicated with various categories and rates so in 2017 the legislature simplified things. There is no earnings limitation but the employer does have to pay the assessment back to KPERS. Mr. Conroy responded to questions from Committee members. (Attachment 4)
There being no further conferees, Chairperson McGinn closed the hearing on SB 274.
