SESSION OF 2023
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2272
As Recommended by House Committee on
Financial Institutions and Pensions
Brief*
HB 2272 would modify the working after retirement
provisions of the Kansas Public Employees Retirement
System (KPERS or the Retirement System) by adding a new
category of positions exempt from working after retirement
employer contributions. The bill would add licensed nurses
and direct support workers at a KPERS-affiliated Community
Developmental Disability Organizations (CDDOs) to the list of
exempted positions.
The bill would also make technical updates to remove
previous working after retirement exceptions that expired
January 1, 2018.
[Note: If exempted from the requirements, the
participating employer (CDDO) would not have to enroll
retirees into KPERS or report compensation to the
Retirement System. The participating employer would not
make contributions to KPERS. However, retirees would still
be required to serve their 60- or 180-day waiting period, as
applicable before returning to covered employment, provided
there is no prearranged agreement for employment.]
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*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org Background
The bill would add a tenth exemption or other
adjustment (employer contribution rate) from the statutory
working after retirement rules. These categories of retirees
permitted to work after retirement include:
●Licensed professional nurses at state institutions
(different employer contribution rate);
●Daily call substitute teachers (exempt);
●Law enforcement officers employed by the Law
Enforcement Training Center (different rate);
●Members of the Regents retirement plan (exempt);
●Poll workers (exempt);
●State or local elected officials (exempt); and
●STARBASE employees (exempt).
The bill was introduced by the House Committee on
Financial Institutions and Pensions at the request of
Representative Hoheisel.
House Committee on Financial Institutions and Pensions
In the House Committee hearing, proponent testimony
was provided by representatives of the Big Lakes
Development Center, Inc.; Starkey, Inc.; and Interhab. The
proponents generally addressed the increasing demand for
direct care support professionals and the challenges in filling
vacancies, including the present cost to hire a KPERS retiree.
The proponents noted the benefits of hiring KPERS retirees
who may be retired school employees, including para
educators and special education teachers whose experience
could benefit the people their organizations serve. One
2- 2272 conferee estimated the bill would enable the organization to
hire three to four more individuals a year.
Written-only proponent testimony was provided by
Developmental Services of Northwest Kansas and Multi
Community Diversified Services.
Neutral information provided by the Executive Director of
KPERS detailed the current working after retirement rules for
members who retire from KPERS and begin receiving
benefits and for KPERS-affiliated employers, the actuarial
impact of the exemption, and administrative costs on the
Retirement System. The conferee noted, under these rules,
employers are required to contribute the statutory contribution
rate (8.43 percent in CY 2023 for local employees) on the first
$25,000 of retiree salary and 30.0 percent for salary above
$25,000.
No other testimony was provided.
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, the KPERS actuary indicates the
current working after retirement employer contribution’s rate
is to help offset the actuarial cost of KPERS-covered
positions being filled with KPERS retirees who do not make
KPERS contributions. 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.
Retirement System; KPERS-affiliated employers; working after retirement rules;
exemption; Community Developmental Disability Organizations
3- 2272