Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 http://budget.kansas.gov
Adam Proffitt, Director Laura Kelly, Governor
Division of the Budget
January 26, 2023
The Honorable Nick Hoheisel, Chairperson
House Committee on Financial Institutions and Pensions
300 SW 10th Avenue, Room 582-N
Topeka, Kansas 66612
Dear Representative Hoheisel:
SUBJECT: Fiscal Note for HB 2025 by Joint Committee on Pensions, Investments and
Benefits
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2025 is
respectfully submitted to your committee.
Under current law, KPERS Tier One and Tier Two members do not have an option for a
cost-of-living adjustment (COLA) when choosing a monthly retirement benefit. However, the
KPERS Tier Three plan was designed with a self-funded COLA option. HB 2025 would add an
option for KPERS Tier One and Tier Two members to choose a self-funded COLA benefit that
would be funded with an actuarial reduction to the member’s benefit.
According to KPERS, the enactment of HB 2025 would have no actuarial cost to KPERS,
as any KPERS Tier One or Tier Two member who would choose the new self-funded COLA
option would receive a benefit that would be actuarially reduced to account for the cost of the
COLA. Tier One and Tier Two members would still have the option to select other benefit options
currently available, including a maximum monthly benefit, joint-survivor benefit, or a life-certain
benefit option.
KPERS indicates that the bill would require changes to the KPERS pension administration
system to allow for the new benefit option. However, the cost for any changes would be negligible
and could be absorbed within existing budget resources.
Sincerely,
Adam Proffitt
Director of the Budget
cc: Jarod Waltner, KPERS