Kansas 2023-2024 Regular Session

Kansas House Bill HB2025 Compare Versions

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1	1	Session of 2023
2	2	HOUSE BILL No. 2025
3	3	By Joint Committee on Pensions, Investments and Benefits
4	4	1-12
5	5	AN ACT concerning retirement and pensions; relating to the Kansas public
6	6	employees retirement system; retirement benefits; authorizing a self-
7	7	funded cost-of-living adjustment option; amending K.S.A. 74-4918 and
8	8	repealing the existing section.
9	9	Be it enacted by the Legislature of the State of Kansas:
10	10	Section 1. K.S.A. 74-4918 is hereby amended to read as follows: 74-
11	11	4918. (1) A member may elect to have such member's retirement benefit
12	12	paid under one of the options provided in this section in lieu of having it
13	13	paid in the form stated in K.S.A. 74-4915, and amendments thereto. Such
14	14	election must be made before the date of actual retirement. A specific
15	15	person must be designated as joint annuitant at the time of election of the
16	16	joint and
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18	18	/2 to joint annuitant survivor option, the joint and survivor option
19	19	and the joint and
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21	21	/4 to joint annuitant survivor option. Except as
22	22	specifically provided in this subsection, an option elected by a member as
23	23	provided in this section shall not be changed or canceled nor shall the
24	24	named joint annuitant be changed after the date of actual retirement of the
25	25	member. If a retirant is divorced after the retirant's date of actual
26	26	retirement, and the retirant has named the retirant's ex-spouse as a joint
27	27	annuitant under subsection (3), the joint annuitant option may be canceled
28	28	and retirant's benefit returned to the maximum amount of such retirant's
29	29	retirement benefit commencing the first month following the date such
30	30	cancellation is ordered by the district court of the county where the divorce
31	31	action was filed. The retirant shall not receive a refund or interest of any
32	32	amounts already paid to fund the original joint annuitant benefit. The
33	33	retirant may not name a subsequent joint annuitant once the original joint
34	34	annuitant option has been cancelled.
35	35	(2) The amount of retirement benefit payable under an option shall be
36	36	based on the age of the member and, if applicable, the age of the joint
37	37	annuitant, and shall be such amount as to be the actuarial equivalent of the
38	38	retirement benefit otherwise payable under K.S.A. 74-4915, and
39	39	amendments thereto, as prescribed in subsection (3). In no case shall the
40	40	total amount of retirement benefit paid under any option provided in this
41	41	section be more than 100% of the retirement benefit which would have
42	42	been otherwise payable if no option had been elected under this section.
43	43	(3) The following retirement options, which are subject to the
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80	80	provisions of K.S.A. 74-49,123, and amendments thereto, are available:
81	81	(A) Joint and
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83	83	/2 to joint annuitant survivor. A reduced retirement
84	84	benefit is payable to the retirant during the retirant's lifetime in a monthly
85	85	amount equal to the product of: (i) The monthly payment of the retirement
86	86	benefit otherwise payable under K.S.A. 74-4915, and amendments
87	87	thereto,; and (ii) the percentage equal to 91% minus .4% for each year by
88	88	which the age of the retirant's joint annuitant is less than the retirant's age,
89	89	computed to the nearest whole year, or plus .4% for each year by which
90	90	the age of the retirant's joint annuitant is more than the retirant's age,
91	91	computed to the nearest whole year, with
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93	93	/2 of that monthly amount
94	94	continued to the retirant's joint annuitant during such joint annuitant's
95	95	remaining lifetime, if any, after the death of the retirant. In the event that
96	96	the designated joint annuitant under this option predeceases the retirant,
97	97	the amount of the retirement benefit otherwise payable to the retirant under
98	98	this option shall be adjusted automatically to the retirement benefit which
99	99	the retirant would have received if no option had been elected under this
100	100	section.
101	101	(B) Joint and survivor. A reduced retirement benefit is payable to the
102	102	retirant during the retirant's lifetime in a monthly amount equal to the
103	103	product of: (i) The monthly payment of the retirement benefit otherwise
104	104	payable under K.S.A. 74-4915, and amendments thereto,; and (ii) the
105	105	percentage equal to 83% minus .6% for each year by which the age of the
106	106	retirant's joint annuitant is less than the retirant's age, computed to the
107	107	nearest whole year, or plus .6% for each year by which the age of the
108	108	retirant's joint annuitant is more than the retirant's age, computed to the
109	109	nearest whole year, with that amount continued to the joint annuitant
110	110	during the joint annuitant's remaining lifetime, if any, after the death of the
111	111	retirant. In the event that the designated joint annuitant under this option
112	112	predeceases the retirant, the amount of the retirement benefit otherwise
113	113	payable to the retirant under this option shall be adjusted automatically to
114	114	the retirement benefit which the retirant would have received if no option
115	115	had been elected under this section.
116	116	(C) Joint and
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118	118	/4 to joint annuitant survivor. A reduced retirement
119	119	benefit is payable to the retirant during the retirant's lifetime in a monthly
120	120	amount equal to the product of: (i) The monthly payment of the retirement
121	121	benefit otherwise payable under K.S.A. 74-4915, and amendments
122	122	thereto,; and (ii) the percentage equal to 87% minus .5% for each year by
123	123	which the age of the retirant's joint annuitant is less than the retirant's age,
124	124	computed to the nearest whole year, or plus .5% for each year by which
125	125	the age of the retirant's joint annuitant is more than the retirant's age,
126	126	computed to the nearest whole year, with
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128	128	/4 of that monthly amount
129	129	continued to the retirant's joint annuitant during such joint annuitant's
130	130	remaining lifetime, if any, after the death of the retirant. In the event that
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174	174	the designated joint annuitant under this option predeceases the retirant,
175	175	the amount of the retirement benefit otherwise payable to the retirant under
176	176	this option shall be adjusted automatically to the retirement benefit which
177	177	the retirant would have received if no option had been elected under this
178	178	section.
179	179	(D) Life with 5 years certain. A reduced retirement benefit is payable
180	180	to the retirant during the retirant's lifetime in a monthly amount equal to
181	181	98% of the monthly payment of the retirement benefit otherwise payable
182	182	under K.S.A. 74-4915, and amendments thereto, and if the retirant dies
183	183	within the five-year certain period, measured from the commencement of
184	184	retirement benefit payments, such payments shall be continued to the
185	185	retirant's beneficiary during the balance of the five-year certain period.
186	186	(E) Life with 10 years certain. A reduced retirement benefit is payable
187	187	to the retirant during the retirant's lifetime in a monthly amount equal to
188	188	95% of the monthly payment of the retirement benefit otherwise payable
189	189	under K.S.A. 74-4915, and amendments thereto, and if the retirant dies
190	190	within the ten-year certain period, measured from the commencement of
191	191	retirement benefit payments, such payments shall be continued to the
192	192	retirant's beneficiary during the balance of the ten-year certain period.
193	193	(F) Life with 15 years certain. A reduced retirement benefit is payable
194	194	to the retirant during the retirant's lifetime in a monthly amount equal to
195	195	88% of the monthly payment of the retirement benefit otherwise payable
196	196	under K.S.A. 74-4915, and amendments thereto, and if the retirant dies
197	197	within the fifteen-year certain period, measured from the commencement
198	198	of retirement benefit payments, such payments shall be continued to the
199	199	retirant's beneficiary during the balance of the fifteen-year certain period.
200	200	(G) Lump sum payment at retirement. (i) Pursuant to this option, the
201	201	member must specify a lump sum amount to be paid to the member upon
202	202	the member's retirement. The lump sum amount will be based on the
203	203	actuarial present value of the benefit as provided in K.S.A. 74-4915, and
204	204	amendments thereto. The lump sum amount designated by the member
205	205	must be in 10% increments and shall not exceed
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207	207	/2 of the actuarial present
208	208	value of the benefit provided in K.S.A. 74-4915, and amendments thereto.
209	209	If the member's spouse elects a lump sum payment as provided in this
210	210	section pursuant to the provisions of subsection (4), the lump sum payment
211	211	will be based on the present value of the retirement option selected by the
212	212	spouse. The lump sum amount designated by the spouse must be in 10%
213	213	increments and shall not exceed
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215	215	/2 of the actuarial present value of the
216	216	option selected in this section.
217	217	(ii) Pursuant to this option, the member must elect to have the
218	218	remaining actuarial present value paid in a monthly amount under the
219	219	provisions of K.S.A. 74-4915, and amendments thereto, or subsections (3)
220	220	(A) through (3)(F) of this section.
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264	264	(iii) In the event that the designated joint annuitant pursuant to
265	265	subsection (3)(A), (3)(B) or (3)(C) under this option predeceases the
266	266	retirant, the amount of the retirement benefit otherwise payable to the
267	267	retirant under this option shall be adjusted automatically to the retirement
268	268	benefit which the retirant would have received if no option had been
269	269	elected under this section.
270	270	(iv) The provisions of this subsection shall be effective on and after
271	271	July 1, 2001.
272	272	(H) Self-funded cost-of-living adjustment. A reduced retirement
273	273	benefit is payable to the retirant under K.S.A. 74-4915, and amendments
274	274	thereto, in a monthly amount reduced in accordance with actuarial factors
275	275	established by the board from time to time, and thereafter, such retirement
276	276	benefit increases by a fixed percentage over time. One or more fixed
277	277	percentages shall be established by the board.
278	278	(4) If a member, who is eligible to retire in accordance with the
279	279	provisions of K.S.A. 74-4914, and amendments thereto, dies without
280	280	having actually retired, the member's spouse, if the spouse is the sole
281	281	beneficiary for the member's accumulated contributions, may elect to
282	282	receive benefits under one of the options provided in this section in lieu of
283	283	receiving the member's accumulated contributions.
284	284	(5) The benefits of subsection (4) shall be available in the case of
285	285	death within the first six months after the entry date of the member's
286	286	participating employer.
287	287	(6) On and after May 1, 2004, if a member with 10 or more years of
288	288	credited service dies before attaining retirement age, the member's spouse,
289	289	if the spouse is the sole beneficiary for the member's accumulated
290	290	contributions, may elect to receive benefits under one of the options
291	291	provided in this section in lieu of receiving the member's accumulated
292	292	contributions. Payments under one of the options provided in this section
293	293	to the member's spouse if so elected, shall commence on the date that the
294	294	member would have been eligible for normal retirement pursuant to
295	295	subsection (1) of K.S.A. 74-4914(1), and amendments thereto, or would
296	296	have been eligible for early retirement pursuant to subsection (4) of K.S.A.
297	297	74-4914(4), and amendments thereto, if such early retirement date occurs
298	298	earlier.
299	299	(7) Benefits payable to a joint annuitant shall accrue from the first
300	300	day of the month following the death of a member or retirant and, in the
301	301	case of the joint and
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303	303	/2 to joint annuitant survivor option, the joint and
304	304	survivor option and the joint and
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306	306	/4 to joint annuitant survivor option, shall
307	307	end on the last day of the month in which the joint annuitant dies.
308	308	(8) The provisions of the law in effect on the retirement date of a
309	309	member under the system shall govern the retirement benefit payable to
310	310	the retirant and any joint annuitant, except, for retirement benefits payable
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354	354	after July 1, 1993, for retirants who retired prior to July 1, 1982, in the
355	355	event that the designated joint annuitant under the option provided in
356	356	subsection (3)(A), (B) or (C), as applicable, predeceased the retirant, the
357	357	amount of the retirement benefit otherwise payable to the retirant under the
358	358	option provided in subsection (3)(A), (B) or (C), as applicable, shall be
359	359	adjusted automatically to the retirement benefit which the retirant would
360	360	have received if no option had been elected under this section.
361	361	(9) Upon the death of a joint annuitant who is receiving a retirement
362	362	benefit under the provisions of this section, there shall be paid to such joint
363	363	annuitant's beneficiary an amount equal to the excess, if any, of the
364	364	accumulated contributions of the retirant over the sum of all retirement
365	365	benefit payments made to such retirant and such joint annuitant. Such joint
366	366	annuitant shall designate a beneficiary by filing in the office of the
367	367	retirement system such designation at the time of death of the retirant. If
368	368	there is no named beneficiary of such joint annuitant living at the time of
369	369	death of such joint annuitant, any amount provided for by this section shall
370	370	be paid to, in order of preference as follows:
371	371	(A) The joint annuitant's surviving spouse;
372	372	(B) the joint annuitant's dependent child or children;
373	373	(C) the joint annuitant's dependent parent or parents;
374	374	(D) the joint annuitant's nondependent child or children;
375	375	(E) the joint annuitant's nondependent parent or parents; or
376	376	(F) the estate of the deceased joint annuitant.
377	377	Sec. 2. K.S.A. 74-4918 is hereby repealed.
378	378	Sec. 3. This act shall take effect and be in force from and after its
379	379	publication in the statute book.
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