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
March 1, 2023
The Honorable Sean Tarwater, Chairperson
House Committee on Commerce, Labor and Economic Development
300 SW 10th Avenue, Room 346-S
Topeka, Kansas 66612
Dear Representative Tarwater:
SUBJECT: Fiscal Note for HB 2063 by House Committee on Commerce, Labor and
Economic Development
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2063 is
respectfully submitted to your committee.
HB 2063 would specify that when an employee begins receiving retirement benefits under
the federal Social Security Act after a work-related accident, any compensation for permanent total
disability or permanent partial disability that the employee is eligible to receive under the Workers
Compensation Act for the claim would be reduced by the weekly equivalent amount of the federal
Social Security retirement benefits.
If the employee begins receiving retirement benefits after the accident that are funded by
the employer against whom the claim is being made, other than retirement benefits under the Social
Security Act, any compensation benefits payments for permanent total disability or permanent
partial disability that the employee is eligible to receive under the Workers Compensation Act for
the claim would be reduced by the weekly equivalent amount of the total amount of such retirement
benefits. No portion of these retirement benefits that would be attributable to payments or
contributions made by the employee would be subject to this reduction.
The bill specifies that whether the employee receives retirement benefits under the Social
Security Act or through any other retirement plan, workers compensation benefits for permanent
disability could not be less than the workers compensation benefit payable for the employee’s
percentage of functional impairment.
The Department of Administration estimates additional expenditures of $131,544 from the
State Self Insurance Fund in FY 2024 resulting from the enactment of HB 2063. The Department The Honorable Sean Tarwater, Chairperson
Page 2—HB 2063
estimates six claimants would qualify for benefits under the provisions of the bill with an average
Social Security benefit of $1,827 per month, resulting in a monthly cost of $10,962 for all
claimants (6 claimants x $1,827 = $10,962). The annual cost would be $131,544 from the State
Self Insurance Fund beginning in FY 2024 ($10,962 x 12 months = $131,544). The Department
states the estimated number of claimants is based upon data from the State Self Insurance Fund
over the last three years.
According to the Kansas Department of Labor, enactment of the bill would not have a fiscal
effect on agency operations. Any fiscal effect associated with HB 2063 is not reflected in The FY
2024 Governor’s Budget Report.
The League of Kansas Municipalities states enactment of the bill would not have a fiscal
effect on cities. The Kansas Association of Counties states any fiscal effect would be negligible
on counties.
Sincerely,
Adam Proffitt
Director of the Budget
cc: Dawn Palmberg, Department of Labor
Tamara Emery, Department of Administration
Vicki Jacobsen, Judiciary
Wendi Stark, League of Kansas Municipalities
Jay Hall, Kansas Association of Counties