Signed by Governor Sam Brownback

Vote Smart's Synopsis:

Vote to pass a bill that amends certain retirement plans for public employees.

Highlights:

• Requires all public employees, hired on or before July 1, 2014, to contribute a mandatory 6 percent of compensation funds to the public employee’s retirement system via a salary reduction (Sec. 5).

• Prohibits public employees’ from voluntary contributing to their retirement plans (Sec. 5).

• Requires all public employers to credit, on a quarterly basis, 4 percent of compensations to each member’s retirement annuity account and to designate a portion of those funds to the employee’s long-term disability and death plan (Sec. 7).

• Establishes a quarterly interest rate guaranteed by the state is placed on an employee’s retirement plan, based as follows (Sec. 8):
• Employed for 20 years or less: 6 percent compound interest;
• Employed for 20 to 30 years: 6.25 percent compound interest; and
• Employed for 30 or more years: 6.5 percent compound interest.

• Specifies that a member of the public employees’ retirement plan is “vested” when they have completed five years of service (Sec. 12).

• Authorizes public employees’ to select any of the following benefits, including but not limited to (Sec. 13):
• A retirement plan account lump-sum payment of no less than 10% and no more than 30 percent; or
• A retirement plan account, which in the case of death before retirement age allows a spouse, named primary beneficiary, to receive annuity based credits within the account at the time of death.

• Requires that beginning on January 1, 2014 public employees’ retirement plan members hired before July 1, 2009 adhere to contribution regulations, including but not limited to (Sec. 21):
• Members that had elected to gain credit for 1.4 percent of their final salary must begin making 4 percent employee contributions; and
• Members that had elected to gain credit for 1.85 percent of their final salary must begin making 5 percent employee contributions.

• Requires that public employees’ retirement plan members hired before July 1, 2009 make 6 percent employee contributions beginning on January 1, 2015 and continuing every following year (Sec. 25).

Full Bill Text