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
February 14, 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 2272 by House Committee on Financial Institutions and
Pensions
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2272 is
respectfully submitted to your committee.
HB 2272 would make changes to current law regarding KPERS and working after
retirement rules. Under current law, when a KPERS retiree returns to work for a KPERS-
participating employer, if the employee earns greater than $25,000 in a calendar year, this
threshold triggers a KPERS employer contribution rate of 30.0 percent on amounts above $25,000.
For amounts under $25,000 the employer pays the statutory contribution rate, currently 14.33
percent in FY 2023. HB 2272 would add licensed nurses and direct support positions at
community developmental disability organizations (CDDOs) to the statutory list of positions that
would be exempt from the working after retirement employer contributions.
The KPERS actuary indicates that the current working-after-retirement employer
contribution rate’s purpose is to help offset the actuarial cost of KPERS-covered positions being
filled with KPERS retirees who do not make KPERS contributions. The enactment of the bill
would have an actuarial cost to KPERS to the extent that the bill would eliminate future
contributions on the compensation of certain retirees who are employed by CDDOs. However,
the number of KPERS retirees employed by CDDOs is relatively small when compared to the total
number of KPERS members and the enactment of the bill would have a negligible effect on
KPERS.
The Honorable Nick Hoheisel, Chairperson
Page 2—HB 2272
KPERS also indicates that the bill would require additional administrative expenses,
including updating printed materials and minor changes to the KPERS IT systems; however, any
additional administrative costs would be negligible. Any fiscal effect associated with HB 2195 is
not reflected in The FY 2024 Governor’s Budget Report.
Sincerely,
Adam Proffitt
Director of the Budget
cc: Jarod Waltner, KPERS