Kansas 2023-2024 Regular Session

Kansas House Bill HB2195 Compare Versions

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11 Session of 2023
22 HOUSE BILL No. 2195
33 By Committee on Financial Institutions and Pensions
44 1-26
55 AN ACT concerning retirement and pensions; relating to the Kansas public
66 employees retirement system; employment after retirement; increasing
77 the amount of retirant compensation subject to the statutory employer
88 contribution rate; requiring participating employers to pay only the
99 statutory employer contribution rate on all compensation of a retirant
1010 employed in a covered position for a period commencing July 1, 2023,
1111 and ending December 31, 2024; amending K.S.A. 74-4937 and K.S.A.
1212 2022 Supp. 74-4914 and repealing the existing sections.
1313 Be it enacted by the Legislature of the State of Kansas:
1414 Section 1. K.S.A. 2022 Supp. 74-4914 is hereby amended to read as
1515 follows: 74-4914.
1616 (1) The normal retirement date for a member of the system shall be the
1717 first day of the month coinciding with or following termination of
1818 employment with any participating employer not followed by employment
1919 with any participating employer within 60 days, or 180 days as provided in
2020 subsection (10) (9), and without any prearranged agreement for
2121 employment with any participating employer, and the attainment of age 65
2222 or, commencing July 1, 1993, age 62 with the completion of 10 years of
2323 credited service or the first day of the month coinciding with or following
2424 the date that the total of the number of years of credited service and the
2525 number of years of attained age of the member is equal to or more than 85.
2626 In no event shall a normal retirement date for a member be before six
2727 months after the entry date of the participating employer by whom such
2828 member is employed. A member may retire on the normal retirement date
2929 or on the first day of any month thereafter upon the filing with the office of
3030 the retirement system of an application in such form and manner as the
3131 board shall prescribe. Such application shall contain a certification by the
3232 member that the member will not be employed with any participating
3333 employer within 60 days, or 180 days as provided in subsection (10) (9),
3434 of retirement and the member has not entered into a prearranged
3535 agreement for employment with any participating employer. Nothing
3636 herein shall prevent any person, member or retirant from being employed,
3737 appointed or elected as an employee, appointee, officer or member of the
3838 legislature. Elected officers may retire from the system on any date on or
3939 after the attainment of the normal retirement date, but no retirement
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7676 benefits payable under this act shall be paid until the member has
7777 terminated such member's office.
7878 (2) No retirant shall make contributions to the system or receive
7979 service credit for any service after the date of retirement.
8080 (3) Any member who is an employee of an affiliating employer
8181 pursuant to K.S.A. 74-4954b, and amendments thereto, and has not
8282 withdrawn such member's accumulated contributions from the Kansas
8383 police and firemen's retirement system may retire before such member's
8484 normal retirement date on the first day of any month coinciding with or
8585 following the attainment of age 55.
8686 (4) Any member may retire before such member's normal retirement
8787 date on the first day of any month coinciding with or following
8888 termination of employment with any participating employer not followed
8989 by employment with any participating employer within 60 days, or 180
9090 days as provided in subsection (10) (9), and the attainment of age 55 with
9191 the completion of 10 years of credited service, but in no event before six
9292 months after the entry date, upon the filing with the office of the retirement
9393 system of an application for retirement in such form and manner as the
9494 board shall prescribe. The member's application for retirement shall
9595 contain a certification by the member that the member will not be
9696 employed with any participating employer within 60 days, or 180 days as
9797 provided in subsection (10) (9), of retirement and the member has not
9898 entered into a prearranged agreement for employment with any
9999 participating employer.
100100 (5) Except as provided in subsections (7) and (10), on or after July 1,
101101 2006, through December 31, 2017, for any retirant who is first employed
102102 or appointed in or to any position or office by a participating employer
103103 other than a participating employer for which such retirant was employed
104104 or appointed during the final two years of such retirant's participation, and,
105105 on or after April 1, 2009, for any retirant who is employed by a third-party
106106 entity who contracts services with a participating employer other than a
107107 participating employer for which such retirant was employed or appointed
108108 during the final two years of such retirant's participation to fill a position
109109 covered under K.S.A. 72-2215(a), and amendments thereto, with such
110110 retirant, such participating employer shall pay to the system the actuarially
111111 determined employer contribution and the statutorily prescribed employee
112112 contribution based on the retirant's compensation during any such period
113113 of employment or appointment. If a retirant is employed or appointed in or
114114 to any position or office for which compensation for service is paid in an
115115 amount equal to $25,000 or more in any one calendar year between July 1,
116116 2016, and January 1, 2018, by any participating employer for which such
117117 retirant was employed or appointed during the final two years of such
118118 retirant's participation, and, on or after April 1, 2009, by any third-party
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162162 entity who contracts services to fill a position covered under K.S.A. 72-
163163 2215(a), and amendments thereto, with such retirant with a participating
164164 employer for which such retirant was employed or appointed during the
165165 final two years of such retirant's participation, such retirant shall not
166166 receive any retirement benefit for any month for which such retirant serves
167167 in such position or office. The participating employer who employs such
168168 retirant whether by contract directly with the retirant or through an
169169 arrangement with a third-party entity shall report to the system within 30
170170 days of when the compensation paid to the retirant is equal to or exceeds
171171 any limitation provided by this section. Any participating employer who
172172 contracts services with any such third-party entity to fill a position covered
173173 under K.S.A. 72-2215(a), and amendments thereto, shall include in such
174174 contract a provision or condition which requires the third-party entity to
175175 provide the participating employer with the necessary compensation paid
176176 information related to any such position filled by the third-party entity
177177 with a retirant to enable the participating employer to comply with
178178 provisions of this subsection relating to the payment of contributions and
179179 reporting requirements. The provisions and requirements provided for in
180180 amendments made in this act which relate to positions filled with a retirant
181181 or employment of a retirant by a third-party entity shall not apply to any
182182 contract for services entered into prior to April 1, 2009, between a
183183 participating employer and third-party entity as described in this
184184 subsection. Any retirant employed by a participating employer or a third-
185185 party entity as provided in this subsection shall not make contributions nor
186186 receive additional credit under such system for such service except as
187187 provided by this section. Upon request of the executive director of the
188188 system, the secretary of revenue shall provide such information as may be
189189 needed by the executive director to carry out the provisions of this act. The
190190 provisions of this subsection shall not apply to retirants employed as
191191 substitute teachers without a contract or officers, employees or appointees
192192 of the legislature. The provisions of this subsection shall not apply to
193193 members of the legislature. The provisions of this subsection shall not
194194 apply to any other elected officials. Commencing July 1, 2005, the
195195 provisions of this subsection shall not apply to retirants who either retired
196196 under the provisions of subsection (1), or, if they retired under the
197197 provisions of subsection (4), were retired more than 30 days prior to the
198198 effective date of this act and are licensed professional nurses or licensed
199199 practical nurses employed by the state of Kansas in an institution as
200200 defined in K.S.A. 76-12a01(b) or K.S.A. 38-2302(k), and amendments
201201 thereto, the Kansas soldiers' home or the Kansas veterans' home. Nothing
202202 in this subsection shall be construed to create any right, or to authorize the
203203 creation of any right, which is not subject to amendment or nullification by
204204 act of the legislature. The participating employer of such retirant shall pay
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248248 to the system the actuarially determined employer contribution based on
249249 the retirant's compensation during any such period of employment. The
250250 provisions of the subsection shall expire on January 1, 2018.
251251 (6) For purposes of this section, any employee of a local
252252 governmental unit which has its own pension plan who becomes an
253253 employee of a participating employer as a result of a merger or
254254 consolidation of services provided by local governmental units, which
255255 occurred on January 1, 1994, may count service with such local
256256 governmental unit in determining whether such employee has met the
257257 years of credited service requirements contained in this section.
258258 (7)(6) (a) (i) Except as provided in K.S.A. 74-4937(3), (4), or (5), and
259259 amendments thereto, and the provisions of this subsection, commencing
260260 July 1, 2016, and ending January 1, 2018, any retirant who is employed or
261261 appointed in or to any position by a participating employer, an independent
262262 contractor or a third-party entity who contracts services with a
263263 participating employer to fill a position, without any prearranged
264264 agreement with such participating employer and not prior to 60 days after
265265 such retirant's retirement date, shall not receive any retirement benefit for
266266 any month in any calendar year in which the retirant receives
267267 compensation in an amount equal to $25,000 or more, pursuant to this
268268 subsection. Any participating employer who hires a retirant covered by this
269269 subsection shall pay to the system the statutorily prescribed employer
270270 contribution rate for such retirant, without regard to whether the retirant is
271271 receiving benefits.
272272 (ii) Commencing January 1, 2018, for all retirements that occurred
273273 prior to such date, any retirant who is employed or appointed in or to any
274274 position by a participating employer, an independent contractor or a third-
275275 party entity who contracts services with a participating employer to fill a
276276 position, without any prearranged agreement with such participating
277277 employer and not prior to 60 days after such retirant's retirement date, shall
278278 not be subject to an earnings limitation that when met or exceeded requires
279279 that the retirant not receive a retirement benefit for any month for which
280280 such retirant serves in such position. If a retirant is employed in a covered
281281 position, as defined in K.S.A. 74-49,202, and amendments thereto, the
282282 participating employer of such retirant shall pay to the system the
283283 statutorily prescribed employer contribution rate on the first $25,000
284284 $35,000 of such retirant's compensation in a calendar year and a 30%
285285 employer contribution on any compensation in excess of $25,000 $35,000
286286 in a calendar year during any such period of employment. If a retirant is
287287 employed by more than one participating employer or performing duties in
288288 more than one position, contributions shall be made on compensation from
289289 all such employment for that calendar year. If a retirant is employed in a
290290 non-covered position, no employer contribution shall be paid to the
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334334 system.
335335 (b) The provisions of this subsection shall not apply, except as
336336 specifically provided in this subsection, to retirants who are:
337337 (i) Licensed professional nurses or licensed practical nurses
338338 employed by the state of Kansas in an institution as defined in K.S.A. 76-
339339 12a01(b) or 38-2302(k), and amendments thereto, the Kansas soldiers'
340340 home or the Kansas veterans' home. The participating employer of such
341341 retirant shall pay to the system the actuarially determined employer
342342 contribution based on the retirant's compensation and the statutorily
343343 prescribed employee contribution during any such period of employment;
344344 (ii) employed by a school district in a position as provided in K.S.A.
345345 74-4937(3), (4) or (5), and amendments thereto;
346346 (iii) certified law enforcement officers employed by the law
347347 enforcement training center. Such law enforcement officers shall receive
348348 their benefits notwithstanding this subsection. The law enforcement
349349 training center shall pay to the system the actuarially determined employer
350350 contribution and the statutorily prescribed employee contribution based on
351351 the retirant's compensation during any such period of employment;
352352 (iv) members of the Kansas police and firemen's retirement system
353353 pursuant to K.S.A. 74-4951 et seq., and amendments thereto, members of
354354 the retirement system for judges pursuant to K.S.A. 20-2601 et seq., and
355355 amendments thereto, or members of the state board of regents retirement
356356 plan pursuant to K.S.A. 74-4925 et seq., and amendments thereto;
357357 (v) employed as substitute teachers without a contract or officers,
358358 employees or appointees of the legislature;
359359 (vi) a poll worker hired to work an election day for a county election
360360 officer responsible for conducting all official elections held in the county;
361361 (vii) employed by, or have accepted employment from, a participating
362362 employer prior to May 1, 2015. Any break in continuous employment by a
363363 retirant or move to a different position by a retirant during the effective
364364 period of this subsection shall be deemed new employment and shall
365365 subject the retirant to the provisions of this subsection. Commencing
366366 January 1, 2018, the participating employer of a retirant described in this
367367 subsection (7)(b)(vii) subparagraph who is employed in a covered
368368 position, as defined in K.S.A. 74-49,202, and amendments thereto, shall
369369 pay to the system the statutorily prescribed employer contribution rate on
370370 the first $25,000 $35,000 of such retirant's compensation in a calendar year
371371 and a 30% employer contribution on any compensation in excess of
372372 $25,000 $35,000 in a calendar year during any such period of
373373 employment. If a retirant is employed by more than one participating
374374 employer or performing duties in more than one position, contributions
375375 shall be made on compensation from all such employment for that
376376 calendar year. If a retirant is employed in a non-covered position, no
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420420 employer contribution shall be paid to the system;
421421 (viii) state or local elected officials. A retirant shall not be employed
422422 in an elected office within 30 days of such retirant's retirement, except that
423423 if a retirant is filling a vacant elected office, no waiting period shall be
424424 required; or
425425 (ix) employed by the Kansas academies of the United States
426426 department of defense STARBASE program.
427427 (c) The participating employer shall enroll all retirants, including
428428 retirants under subsection (7)(b)(i) (6)(b)(i), (ii), (iii), (vii) and (viii), and
429429 report to the system when compensation is paid to a retirant as provided in
430430 this subsection. Such report shall contain a certification by the appointing
431431 authority of the participating employer that any hired retirant has not been
432432 employed by the participating employer within 60 days of such retirant's
433433 retirement and that there was no prearranged agreement for employment
434434 between the participating employer and the hired retirant. Upon request of
435435 the executive director of the system, the participating employer shall
436436 provide such information as may be needed by the executive director to
437437 carry out the provisions of this subsection. No retirant shall make
438438 contributions to the system or receive credit for service while employed
439439 under the provisions of this subsection.
440440 (d) A participating employer may employ a retirant without regard to
441441 the compensation limitation in this subsection for a period of one calendar
442442 year or one school year, as the case may be, if the following requirements
443443 are met:
444444 (i) The employer certifies to the board that the position being filled
445445 has been vacated due to an unexpected emergency or the employer has
446446 been unsuccessful in filling the position;
447447 (ii) the employer pays to the system a 30% employer contribution
448448 based on the retirant's compensation during any such period of
449449 employment; and
450450 (iii) the employer maintains documentation of its efforts to fill the
451451 position with a non-retirant and provides such documentation to the joint
452452 committee on pensions, investments and benefits upon request of the
453453 committee.
454454 The provisions of this paragraph shall expire on January 1, 2018.
455455 (e) An employer may submit a written assurance protocol to the
456456 system to extend the exception provided for in subsection (7)(d) by one-
457457 year increments for a total extension not to exceed three years. A written
458458 assurance protocol shall be submitted to the system for each one-year
459459 increment extension. If a school district submits a written assurance
460460 protocol, such written assurance protocol shall be signed by the
461461 superintendent and the board president of such school district. If a
462462 municipality, as defined in K.S.A. 75-1117, and amendments thereto, other
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506506 than a school district, submits a written assurance protocol, such written
507507 assurance protocol shall be signed by the governing body or such
508508 governing body's designee for such municipality. Such written assurance
509509 protocol shall state that the position was advertised on multiple platforms
510510 for a minimum of 30 calendar days and that at least one of the following
511511 conditions occurred:
512512 (i) No applications were submitted for the position;
513513 (ii) if applications were submitted, none of the applicants met the
514514 reference screening criteria of the employer; or
515515 (iii) if applications were submitted, none of the applicants possessed
516516 the appropriate licensure, certification or other necessary credentials for
517517 the position.
518518 The provisions of this paragraph shall expire on January 1, 2018.
519519 (f) Retirants who are independent contractors or employees of third-
520520 party entities who contract with a participating employer, shall not be
521521 subject to the compensation limitation or employer contribution
522522 requirements in this subsection or the requirements of subsection (7)(c)
523523 paragraph (c) regarding enrollment and reporting to the system, so long as
524524 all of the following apply:
525525 (A) The contractual relationship was not created to allow the retirant
526526 to continue employment with the participating employer after retirement in
527527 a position similar to the one such retirant held prior to retirement;
528528 (B) the activities performed by the independent contractor or third-
529529 party entity are not normally performed exclusively by employees of that
530530 participating employer; and
531531 (C) the retirant meets the classification of independent contractor as
532532 provided in K.S.A. 44-768, and amendments thereto, or activities
533533 performed by the third-party entity that employs the retirant are performed
534534 on a limited-term basis and the third-party entity is not a participating
535535 employer in the system.
536536 (g)(e) Nothing in this subsection shall be construed to create any
537537 right, or to authorize the creation of any right, which is not subject to
538538 amendment or nullification by act of the legislature.
539539 (8)(7) (a) Except as provided in subsection (8)(b) paragraph (b), if
540540 determined by the retirement system that a retirant entered into a
541541 prearranged agreement for employment with a participating employer
542542 prior to such retirant's retirement and prior to the end of the subsequent 60-
543543 day waiting period, or the 180-day waiting period under subsection (10)
544544 (9), the monthly retirement benefit of such retirant shall be suspended
545545 during the period that begins on the month in which the retirant is re-
546546 employed and ends six months after the retirant's termination of such
547547 employment. The retirant shall repay to the retirement system all monthly
548548 retirement benefits paid to the retirant by the retirement system that the
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592592 retirant received after such employment began. The participating employer
593593 which hired such retirant shall be required to pay to the system any fees,
594594 fines, penalties or any other cost imposed by the internal revenue service
595595 and indemnify the system for any cost incurred by the system to defend
596596 any action brought by the internal revenue service based on in-service
597597 distributions which are a result of any determined prearranged agreement
598598 and for any cost incurred by the system to collect any monthly retirement
599599 benefit required to be repaid by such retirant pursuant to this subsection.
600600 (b) For members who retired on and after July 1, 2016, and on or
601601 before July 1, 2019, if determined by the retirement system that a retirant
602602 entered into a prearranged agreement for employment with a participating
603603 employer prior to such retirant's retirement date and the subsequent 60-day
604604 waiting period, or the 180-day waiting period under subsection (10) (9),
605605 and upon being notified of the violation, the retirant terminated such
606606 employment, the provisions of subsection paragraph (a) shall not apply. If
607607 any retirant had benefits suspended prior to July 1, 2019, such benefits
608608 shall be reimbursed by the retirement system, if the retirant terminated
609609 such prearranged employment in accordance with the provisions of this
610610 act. On and after July 1, 2019, the executive director may waive such
611611 penalties under this subsection if it is determined by the retirement system
612612 that any of the following conditions were satisfied:
613613 (i) The retirant's total length of reemployment was less than 21
614614 calendar days;
615615 (ii) the retirant's total compensation during the total length of
616616 reemployment was less than 10% of the amount of such retirant's
617617 retirement benefit that would be suspended pursuant to this subsection; or
618618 (iii) other facts and circumstances indicated that the retirant would
619619 not have been reemployed but for an error on the part of the participating
620620 employer or the retirement system in verifying the retirement status of
621621 such retirant and such retirant immediately terminated employment upon
622622 being notified of the violation.
623623 (c) On or before the first day of each regular session of the
624624 legislature, beginning with the 2020 regular session, the executive director
625625 shall submit an annual report on the number of waivers granted pursuant to
626626 subsection (8)(b) paragraph (b) in the prior calendar year to the joint
627627 committee on pensions, investments and benefits, the house of
628628 representatives standing committee on financial institutions and pensions
629629 and the senate standing committee on financial institutions and insurance,
630630 or the successors of such committees.
631631 (9)(8) For the purposes of this section a prearranged agreement for
632632 employment may be determined by whether the facts and circumstances of
633633 the situation indicate that the employer and employee reasonably
634634 anticipated that further services would be performed after the employee's
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678678 retirement.
679679 (10)(9) (a) Notwithstanding the provisions of subsection (5) or (7) (6)
680680 to the contrary, commencing January 1, 2018, any retirant who is retired
681681 more than 60 days, if such retirant's age on the date of retirement is 62 or
682682 older, or is retired more than 180 days, if such retirant's age on the date of
683683 retirement is less than 62, and who is subsequently hired without any
684684 prearranged agreement with the participating employer in a covered
685685 position, as defined in K.S.A. 74-49,202, and amendments thereto, or an
686686 independent contractor or a third-party entity who contracts service to fill
687687 such covered position shall not be subject to an earnings limitation that
688688 when met or exceeded requires that the retirant not receive a retirement
689689 benefit for any month for which such retirant serves in such covered
690690 position. The participating employer of such retirant shall pay to the
691691 system the statutorily prescribed employer contribution rate on the first
692692 $25,000 $35,000 of such retirant's compensation in a calendar year and a
693693 30% employer contribution on any compensation in excess of $25,000
694694 $35,000 in a calendar year during any such period of employment. If a
695695 retirant is employed by more than one participating employer or
696696 performing duties in more than one position, contributions shall be made
697697 on compensation from all such employment for that calendar year.
698698 (b) Notwithstanding the provisions of subsection (5) or (7) (6) to the
699699 contrary, commencing January 1, 2018, any retirant who is retired more
700700 than 60 days, if such retirant's age on the date of retirement is 62 or older,
701701 or is retired more than 180 days, if such retirant's age on the date of
702702 retirement is less than 62, and who is subsequently hired without any
703703 prearranged agreement with the participating employer in a non-covered
704704 position, or an independent contractor or a third-party entity who contracts
705705 service to fill such non-covered position, shall not be subject to an
706706 earnings limitation that when met or exceeded requires that the retirant not
707707 receive a retirement benefit for any month for which such retirant serves in
708708 such non-covered position. No employer contribution shall be paid to the
709709 system on compensation paid to a retirant hired in a non-covered position.
710710 (c) The participating employer shall enroll all retirants, including
711711 retirants under subsection (7)(b)(i) (6)(b)(i), (ii), (iii), (vii) and (viii), and
712712 report to the system when compensation is paid to a retirant as provided in
713713 this subsection. Such report shall contain a certification by the appointing
714714 authority of the participating employer that any hired retirant has not been
715715 employed by the participating employer within 60 days of such retirant's
716716 retirement in the case of a retirant whose age on the date of retirement is
717717 62 or older, or within 180 days of such retirant's retirement in the case of a
718718 retirant whose age on the date of retirement is less than 62, and that there
719719 was no prearranged agreement for employment between the participating
720720 employer and the hired retirant. Upon request of the executive director of
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764764 the system, the participating employer shall provide such information as
765765 may be needed by the executive director to carry out the provisions of this
766766 subsection. No retirant shall make contributions to the system or receive
767767 credit for service while employed under the provisions of this subsection.
768768 (d) Except as provided in this paragraph, notwithstanding the
769769 provisions of this subsection to the contrary, for the period commencing
770770 on July 1, 2023, and ending on December 31, 2024, a participating
771771 employer shall pay to the system the statutorily prescribed employer
772772 contribution rate on all compensation of a retirant employed in a covered
773773 position. The provisions of this subsection relating to an earnings
774774 limitation and employer contributions shall not apply to any retirant
775775 described in subsection (7)(b) (6)(b) or to retirants who are independent
776776 contractors or employees of third-party entities who contract with a
777777 participating employer as described in subsection (7)(f) (6)(d), except as
778778 specifically provided in this subsection.
779779 (e) Nothing in this subsection shall be construed to create any right,
780780 or to authorize the creation of any right that is not subject to amendment or
781781 nullification by act of the legislature.
782782 Sec. 2. K.S.A. 74-4937 is hereby amended to read as follows: 74-
783783 4937. (1) The normal retirement date of a member of the system who is in
784784 school employment and who is subject to K.S.A. 74-4940, and
785785 amendments thereto, shall be the first day of the month coinciding with or
786786 following termination of employment not followed by employment with
787787 any participating employer within 60 days, or 180 days as provided in
788788 K.S.A. 74-4914(10)(9), and amendments thereto, and without any
789789 prearranged agreement for employment with any participating employer,
790790 and the attainment of age 65 or, commencing July 1, 1986, age 65 or age
791791 60 with the completion of 35 years of credited service or at any age with
792792 the completion of 40 years of credited service, or commencing July 1,
793793 1993, any alternative normal retirement date already prescribed by law or
794794 age 62 with the completion of 10 years of credited service or the first day
795795 of the month coinciding with or following the date that the total of the
796796 number of years of credited service and the number of years of attained
797797 age of the member is equal to or more than 85. Each member upon giving
798798 prior notice to the appointing authority and the retirement system may
799799 retire on the normal retirement date or the first day of any month
800800 thereafter. Such member's application for retirement shall contain a
801801 certification by the member that the member will not be employed with
802802 any participating employer within 60 days, or 180 days as provided in
803803 K.S.A. 74-4914(10)(9), and amendments thereto, of retirement and the
804804 member has not entered into a prearranged agreement for employment
805805 with any participating employer.
806806 (2) Any member who is in school employment and who is subject to
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850850 K.S.A. 74-4940, and amendments thereto, may retire before such
851851 member's normal retirement date on the first day of the month coinciding
852852 with or following termination of employment not followed by employment
853853 with any participating employer within 60 days, or 180 days as provided in
854854 K.S.A. 74-4914(10)(9), and amendments thereto, and the attainment of age
855855 55 with the completion of 10 years of credited service, upon the filing with
856856 the office of the retirement system of an application for retirement in such
857857 form and manner as the board shall prescribe. The member's application
858858 for retirement shall contain a certification by the member that the member
859859 will not be employed with any participating employer within 60 days, or
860860 180 days as provided in K.S.A. 74-4914(10)(9), and amendments thereto,
861861 of retirement and the member has not entered into a prearranged
862862 agreement for employment with any participating employer.
863863 (3) (a) The provisions of K.S.A. 74-4914(5), (7) and (10)(6) and (9),
864864 and amendments thereto, which relate to an earnings limitation which
865865 when met or exceeded requires that the retirant not receive a retirement
866866 benefit for any month for which such retirant serves in a position as
867867 described herein shall not apply to retirants who either retired under the
868868 provisions of K.S.A. 74-4914(l), and amendments thereto, related to
869869 normal retirement, or, if they retired under the provisions of K.S.A. 74-
870870 4914(4), and amendments thereto, related to early retirement, and are
871871 subsequently hired in a position that requires a license under K.S.A. 72-
872872 2157, and amendments thereto, or other provision of law. The provisions
873873 of this subsection shall only apply to retirants who retired prior to January
874874 1, 2018. Except as otherwise provided, when a retirant is employed by the
875875 same school district or a different school district with which such retirant
876876 was employed during the final two years of such retirant's participation or
877877 employed as an independent contractor or by a third-party entity who
878878 contracts services with a school district to fill a position as described in
879879 this subsection, the participating employer of such retirant shall pay to the
880880 system the actuarially determined employer contribution based on the
881881 retirant's compensation during any such period of employment plus 8%.
882882 Commencing January 1, 2018, if a retirant is employed in a covered
883883 position, as defined in K.S.A. 74-49,202, and amendments thereto, the
884884 participating employer shall pay to the system the statutorily prescribed
885885 employer contribution rate on the first $25,000 $35,000 of such retirant's
886886 compensation in a calendar year and a 30% employer contribution on any
887887 compensation in excess of $25,000 $35,000 in a calendar year during any
888888 such period of employment. If a retirant is employed by more than one
889889 participating employer or performing duties in more than one position,
890890 contributions shall be made on compensation from all such employment
891891 for that calendar year. If a retirant is employed in a non-covered position,
892892 no employer contribution shall be paid to the system. The participating
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936936 employer shall enroll all retirants and report to the system when
937937 compensation is paid to a retirant as provided in this subsection. Such
938938 notice shall contain a certification by the appointing authority of the
939939 participating employer that any hired retirant has not been employed by
940940 the participating employer within 60 days of such retirant's retirement and
941941 that there was no prearranged agreement for employment between the
942942 participating employer and the hired retirant. Upon request of the
943943 executive director of the system, the participating employer shall provide
944944 such information as may be needed by the executive director to carry out
945945 the provisions of this subsection. The provisions of this subsection shall
946946 not apply to retirants employed as substitute teachers without a contract.
947947 The provisions of K.S.A. 74-4914(5), and amendments thereto, shall be
948948 applicable to retirants employed as described in this subsection, except as
949949 specifically provided in this subsection. Nothing in this subsection shall be
950950 construed to create any right, or to authorize the creation of any right,
951951 which that is not subject to amendment or nullification by act of the
952952 legislature.
953953 (4) (a) On and after July 1, 2016, a school district may hire a retired
954954 licensed professional to fill a special teacher position as defined in K.S.A.
955955 72-3404, and amendments thereto, if such retirant is hired not prior to 60
956956 days after such retirant's retirement date without any prearrangement with
957957 such school district in the manner prescribed in this subsection. The
958958 participating employer shall enroll all retirants and report to the system
959959 when compensation is paid to a retirant as provided in this subsection.
960960 Such notice shall contain a certification by the appointing authority of the
961961 participating employer that any hired retirant has not been employed by
962962 the participating employer within 60 days of such retirant's retirement and
963963 that there was no prearranged agreement for employment between the
964964 participating employer and the hired retirant. Upon request of the
965965 executive director of the system, the participating employer shall provide
966966 such information as may be needed by the executive director to carry out
967967 the provisions of this subsection.
968968 (b) A retirant hired under the provisions of this subsection may
969969 continue to receive such retirant's full retirement benefit for a period not to
970970 exceed three school years or 36 months, whichever is less, and shall not be
971971 subject to the provisions of K.S.A. 74-4914(5), and amendments thereto,
972972 which relate to a compensation limitation which when met or exceeded
973973 requires that the retirant not receive a retirement benefit for any month for
974974 which such retirant serves in a position as described herein. Such retirant
975975 may be employed by such employer for some or all of a school year, and
976976 in subsequent school years if the employer is unable to permanently fill the
977977 position with active members, so long as the retirant's total term of
978978 employment with all employers under this subsection does not exceed 36
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10221022 months or three school years, whichever is less. After such period, the
10231023 retirant shall be subject to the provisions of K.S.A. 74-4914(7), and
10241024 amendments thereto, which relate to a compensation limitation which
10251025 when met or exceeded requires that the retirant not receive a retirement
10261026 benefit for any month for which such retirant serves in a position as
10271027 described herein. The participating employer of such retirant shall pay to
10281028 the system a 30% employer contribution based on the retirant's
10291029 compensation during any such period of employment. The provisions of
10301030 this subsection shall not apply to retirants employed as substitute teachers
10311031 without a contract. The provisions of K.S.A. 74-4914(5), and amendments
10321032 thereto, shall be applicable to retirants employed as special teachers,
10331033 except as specifically provided in this subsection.
10341034 (c) Each school district that uses the provisions of this subsection to
10351035 hire retirants shall maintain documentation describing their recruiting
10361036 efforts to obtain non-retirant employees to fill the special teacher positions.
10371037 Upon request of the joint committee on pensions, investments and
10381038 benefits, an employer shall provide such documentation to the committee.
10391039 If the committee finds that an employer has not made sufficient efforts to
10401040 hire a non-retirant for the position or if the committee finds evidence of
10411041 prearrangement in violation of this section, the three-year exemption
10421042 provided pursuant to this subsection may be revoked. The committee shall
10431043 notify the executive director of the system that a retirant's exemption has
10441044 been revoked within 30 days of making such a determination.
10451045 (d) An employer may submit a written assurance protocol to the
10461046 system to make a one-time extension to the exception provided for in this
10471047 subsection by one year. Such written assurance protocol shall be signed by
10481048 the superintendent and the board president of the school district. Such
10491049 written assurance protocol shall state that the position was advertised on
10501050 multiple platforms for a minimum of 30 calendar days and that at least one
10511051 of the following conditions occurred:
10521052 (i) No applications were submitted for the position;
10531053 (ii) if applications were submitted, none of the applicants met the
10541054 reference screening criteria of the employer; or
10551055 (iii) if applications were submitted, none of the applicants possessed
10561056 an appropriate teaching license for the state of Kansas or possessed the
10571057 appropriate credentials to receive any type of teaching license from the
10581058 state of Kansas.
10591059 (e) Nothing in this subsection shall be construed to create any right,
10601060 or to authorize the creation of any right, which is not subject to
10611061 amendment or nullification by act of the legislature.
10621062 (f) The provisions of this subsection shall expire on January 1, 2018.
10631063 (5) (a) On and after July 1, 2016, a school district may hire a retired
10641064 licensed professional to fill a non-special teacher position if such retirant is
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11081108 hired not prior to 60 days after such retirant's retirement date without any
11091109 prearrangement with such school district, and if such school district hires a
11101110 retirant for a hard-to-fill position in the manner prescribed in this
11111111 subsection. The participating employer shall enroll all retirants and report
11121112 to the system when compensation is paid to a retirant as provided in this
11131113 subsection. Such notice shall contain a certification by the appointing
11141114 authority of the participating employer that any hired retirant has not been
11151115 employed by the participating employer within 60 days of such retirant's
11161116 retirement and that there was no prearranged agreement for employment
11171117 between the participating employer and the hired retirant. Upon request of
11181118 the executive director of the system, the participating employer shall
11191119 provide such information as may be needed by the executive director to
11201120 carry out the provisions of this subsection.
11211121 (b) The state board of education shall annually certify the top five
11221122 types of licensed positions that are hard to fill. A school district may hire a
11231123 retirant to fill a hard-to-fill position for some or all of a school year and in
11241124 subsequent school years if the employer is unable to permanently fill the
11251125 position with an active member. A retirant first hired under the provisions
11261126 of this subsection may be retained by an employer even if such retirant's
11271127 type of position is no longer one of the five types of positions certified by
11281128 the state board of education. A retirant hired under the provisions of this
11291129 subsection may continue to receive such retirant's full retirement benefit
11301130 for a period not to exceed three school years or 36 months, whichever is
11311131 less, and shall not be subject to the provisions of K.S.A. 74-4914(5), and
11321132 amendments thereto, which relate to a compensation limitation which
11331133 when met or exceeded requires that the retirant not receive a retirement
11341134 benefit for any month for which such retirant serves in a position as
11351135 described herein. Such retirant may be employed by such employer for
11361136 some or all of a school year, and in subsequent school years if the
11371137 employer is unable to permanently fill the position with active members,
11381138 so long as the retirant's total term of employment with all employers under
11391139 this subsection does not exceed 36 months or three school years,
11401140 whichever is less. After such period, the retirant shall be subject to the
11411141 provisions of K.S.A. 74-4914(7), and amendments thereto, which relate to
11421142 a compensation limitation which when met or exceeded requires that the
11431143 retirant not receive a retirement benefit for any month for which such
11441144 retirant serves in a position as described herein. The participating
11451145 employer of such retirant shall pay to the system a 30% employer
11461146 contribution based on the retirant's compensation during any such period
11471147 of employment. The provisions of this subsection shall not apply to
11481148 retirants employed as substitute teachers without a contract. The provisions
11491149 of K.S.A. 74-4914(5), and amendments thereto, shall be applicable to
11501150 retirants employed as described in this subsection, except as specifically
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11941194 provided in this subsection.
11951195 (c) Each school district that uses the provisions of this subsection to
11961196 hire retirants for hard-to-fill positions shall maintain documentation
11971197 describing their recruiting efforts to obtain non-retirant employees to fill
11981198 the hard-to-fill positions. Upon request of the joint committee on pensions,
11991199 investments and benefits, a school district shall provide such
12001200 documentation to the committee. If the committee finds that a school
12011201 district has not made sufficient efforts to hire a non-retirant for the position
12021202 or if the committee finds evidence of prearrangement in violation of this
12031203 section, the three-year exemption provided pursuant to this subsection may
12041204 be revoked. The committee shall notify the executive director of the
12051205 system that a retirant's exemption has been revoked within 30 days of
12061206 making such a determination.
12071207 (d) An employer may submit a written assurance protocol to the
12081208 system to make a one-time extension to the exception provided for in this
12091209 subsection by one year. Such written assurance protocol shall be signed by
12101210 the superintendent and the board president of the school district. Such
12111211 written assurance protocol shall state that the position was advertised on
12121212 multiple platforms for a minimum of 30 calendar days and that at least one
12131213 of the following conditions occurred:
12141214 (i) No applications were submitted for the position;
12151215 (ii) if applications were submitted, none of the applicants met the
12161216 reference screening criteria of the employer; or
12171217 (iii) if applications were submitted, none of the applicants possessed
12181218 an appropriate teaching license for the state of Kansas or possessed the
12191219 appropriate credentials to receive any type of teaching license from the
12201220 state of Kansas.
12211221 (e) Nothing in this subsection shall be construed to create any right,
12221222 or to authorize the creation of any right, which is not subject to
12231223 amendment or nullification by act of the legislature.
12241224 (f) The provisions of this subsection shall expire on January 1, 2018.
12251225 (6)(b) Notwithstanding the provisions of K.S.A. 74-4914, and
12261226 amendments thereto, or this section to the contrary, for the period
12271227 commencing on July 1, 2023, and ending on December 31, 2024, the
12281228 participating employer shall pay to the system the statutorily prescribed
12291229 employer contribution rate on all compensation of a retirant employed in
12301230 a covered position. Nothing in this paragraph shall be construed to create
12311231 any right, or to authorize the creation of any right that is not subject to
12321232 amendment or nullification by act of the legislature.
12331233 (4) The provisions of K.S.A. 74-4914(8)(7), and amendments thereto,
12341234 shall apply to retirants under the provisions of this section.
12351235 (7)(5) For the purposes of this section a prearranged agreement for
12361236 employment may be determined by whether the facts and circumstances of
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12801280 the situation indicate that the employer and employee reasonably
12811281 anticipated that further services would be performed after the employee's
12821282 retirement.
12831283 Sec. 3. K.S.A. 74-4937 and K.S.A. 2022 Supp. 74-4914 are hereby
12841284 repealed.
12851285 Sec. 4. This act shall take effect and be in force from and after its
12861286 publication in the statute book.
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