Session of 2023
HOUSE BILL No. 2272
By Committee on Financial Institutions and Pensions
2-2
AN ACT concerning retirement and pensions; relating to the Kansas public
employees retirement system; employment after retirement; providing
an exemption for retirants employed by a community developmental
disability organization in a licensed professional nurse, licensed
practical nurse or direct support position; amending K.S.A. 2022 Supp.
74-4914 and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2022 Supp. 74-4914 is hereby amended to read as
follows: 74-4914.(1) The normal retirement date for a member of the
system shall be the first day of the month coinciding with or following
termination of employment with any participating employer not followed
by employment with any participating employer within 60 days, or 180
days as provided in subsection (10) (9), and without any prearranged
agreement for employment with any participating employer, and the
attainment of age 65 or, commencing July 1, 1993, age 62 with the
completion of 10 years of credited service or the first day of the month
coinciding with or following the date that the total of the number of years
of credited service and the number of years of attained age of the member
is equal to or more than 85. In no event shall a normal retirement date for a
member be before six months after the entry date of the participating
employer by whom such member is employed. A member may retire on
the normal retirement date or on the first day of any month thereafter upon
the filing with the office of the retirement system of an application in such
form and manner as the board shall prescribe. Such application shall
contain a certification by the member that the member will not be
employed with any participating employer within 60 days, or 180 days as
provided in subsection (10) (9), of retirement and the member has not
entered into a prearranged agreement for employment with any
participating employer. Nothing herein shall prevent any person, member
or retirant from being employed, appointed or elected as an employee,
appointee, officer or member of the legislature. Elected officers may retire
from the system on any date on or after the attainment of the normal
retirement date, but no retirement benefits payable under this act shall be
paid until the member has terminated such member's office.
(2) No retirant shall make contributions to the system or receive
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service credit for any service after the date of retirement.
(3) Any member who is an employee of an affiliating employer
pursuant to K.S.A. 74-4954b, and amendments thereto, and has not
withdrawn such member's accumulated contributions from the Kansas
police and firemen's retirement system may retire before such member's
normal retirement date on the first day of any month coinciding with or
following the attainment of age 55.
(4) Any member may retire before such member's normal retirement
date on the first day of any month coinciding with or following
termination of employment with any participating employer not followed
by employment with any participating employer within 60 days, or 180
days as provided in subsection (10) (9), and the attainment of age 55 with
the completion of 10 years of credited service, but in no event before six
months after the entry date, upon the filing with the office of the retirement
system of an application for retirement in such form and manner as the
board shall prescribe. The member's application for retirement shall
contain a certification by the member that the member will not be
employed with any participating employer within 60 days, or 180 days as
provided in subsection (10) (9), of retirement and the member has not
entered into a prearranged agreement for employment with any
participating employer.
(5) Except as provided in subsections (7) and (10), on or after July 1,
2006, through December 31, 2017, for any retirant who is first employed
or appointed in or to any position or office by a participating employer
other than a participating employer for which such retirant was employed
or appointed during the final two years of such retirant's participation, and,
on or after April 1, 2009, for any retirant who is employed by a third-party
entity who contracts services with a participating employer other than a
participating employer for which such retirant was employed or appointed
during the final two years of such retirant's participation to fill a position
covered under K.S.A. 72-2215(a), and amendments thereto, with such
retirant, such participating employer shall pay to the system the actuarially
determined employer contribution and the statutorily prescribed employee
contribution based on the retirant's compensation during any such period
of employment or appointment. If a retirant is employed or appointed in or
to any position or office for which compensation for service is paid in an
amount equal to $25,000 or more in any one calendar year between July 1,
2016, and January 1, 2018, by any participating employer for which such
retirant was employed or appointed during the final two years of such
retirant's participation, and, on or after April 1, 2009, by any third-party
entity who contracts services to fill a position covered under K.S.A. 72-
2215(a), and amendments thereto, with such retirant with a participating
employer for which such retirant was employed or appointed during the
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final two years of such retirant's participation, such retirant shall not
receive any retirement benefit for any month for which such retirant serves
in such position or office. The participating employer who employs such
retirant whether by contract directly with the retirant or through an
arrangement with a third-party entity shall report to the system within 30
days of when the compensation paid to the retirant is equal to or exceeds
any limitation provided by this section. Any participating employer who
contracts services with any such third-party entity to fill a position covered
under K.S.A. 72-2215(a), and amendments thereto, shall include in such
contract a provision or condition which requires the third-party entity to
provide the participating employer with the necessary compensation paid
information related to any such position filled by the third-party entity
with a retirant to enable the participating employer to comply with
provisions of this subsection relating to the payment of contributions and
reporting requirements. The provisions and requirements provided for in
amendments made in this act which relate to positions filled with a retirant
or employment of a retirant by a third-party entity shall not apply to any
contract for services entered into prior to April 1, 2009, between a
participating employer and third-party entity as described in this
subsection. Any retirant employed by a participating employer or a third-
party entity as provided in this subsection shall not make contributions nor
receive additional credit under such system for such service except as
provided by this section. Upon request of the executive director of the
system, the secretary of revenue shall provide such information as may be
needed by the executive director to carry out the provisions of this act. The
provisions of this subsection shall not apply to retirants employed as
substitute teachers without a contract or officers, employees or appointees
of the legislature. The provisions of this subsection shall not apply to
members of the legislature. The provisions of this subsection shall not
apply to any other elected officials. Commencing July 1, 2005, the
provisions of this subsection shall not apply to retirants who either retired
under the provisions of subsection (1), or, if they retired under the
provisions of subsection (4), were retired more than 30 days prior to the
effective date of this act and are licensed professional nurses or licensed
practical nurses employed by the state of Kansas in an institution as
defined in K.S.A. 76-12a01(b) or K.S.A. 38-2302(k), and amendments
thereto, the Kansas soldiers' home or the Kansas veterans' home. Nothing
in this subsection shall be construed to create any right, or to authorize the
creation of any right, which is not subject to amendment or nullification by
act of the legislature. The participating employer of such retirant shall pay
to the system the actuarially determined employer contribution based on
the retirant's compensation during any such period of employment. The
provisions of the subsection shall expire on January 1, 2018.
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(6) For purposes of this section, any employee of a local
governmental unit which has its own pension plan who becomes an
employee of a participating employer as a result of a merger or
consolidation of services provided by local governmental units, which
occurred on January 1, 1994, may count service with such local
governmental unit in determining whether such employee has met the
years of credited service requirements contained in this section.
(7)(6) (a) (i) Except as provided in K.S.A. 74-4937(3), (4), or (5), and
amendments thereto, and the provisions of this subsection, commencing
July 1, 2016, and ending January 1, 2018, any retirant who is employed or
appointed in or to any position by a participating employer, an independent
contractor or a third-party entity who contracts services with a
participating employer to fill a position, without any prearranged
agreement with such participating employer and not prior to 60 days after
such retirant's retirement date, shall not receive any retirement benefit for
any month in any calendar year in which the retirant receives
compensation in an amount equal to $25,000 or more, pursuant to this
subsection. Any participating employer who hires a retirant covered by this
subsection shall pay to the system the statutorily prescribed employer
contribution rate for such retirant, without regard to whether the retirant is
receiving benefits.
(ii) Commencing January 1, 2018, for all retirements that occurred
prior to such date, any retirant who is employed or appointed in or to any
position by a participating employer, an independent contractor or a third-
party entity who contracts services with a participating employer to fill a
position, without any prearranged agreement with such participating
employer and not prior to 60 days after such retirant's retirement date, shall
not be subject to an earnings limitation that when met or exceeded requires
that the retirant not receive a retirement benefit for any month for which
such retirant serves in such position. If a retirant is employed in a covered
position, as defined in K.S.A. 74-49,202, and amendments thereto, the
participating employer of such retirant shall pay to the system the
statutorily prescribed employer contribution rate on the first $25,000 of
such retirant's compensation in a calendar year and a 30% employer
contribution on any compensation in excess of $25,000 in a calendar year
during any such period of employment. If a retirant is employed by more
than one participating employer or performing duties in more than one
position, contributions shall be made on compensation from all such
employment for that calendar year. If a retirant is employed in a non-
covered position, no employer contribution shall be paid to the system.
(b) The provisions of this subsection shall not apply, except as
specifically provided in this subsection, to retirants who are:
(i) Licensed professional nurses or licensed practical nurses employed
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by the state of Kansas in an institution as defined in K.S.A. 76-12a01(b) or
38-2302(k), and amendments thereto, the Kansas soldiers' home or the
Kansas veterans' home. The participating employer of such retirant shall
pay to the system the actuarially determined employer contribution based
on the retirant's compensation and the statutorily prescribed employee
contribution during any such period of employment;
(ii) employed by a school district in a position as provided in K.S.A.
74-4937(3), (4) or (5), and amendments thereto;
(iii) certified law enforcement officers employed by the law
enforcement training center. Such law enforcement officers shall receive
their benefits notwithstanding this subsection. The law enforcement
training center shall pay to the system the actuarially determined employer
contribution and the statutorily prescribed employee contribution based on
the retirant's compensation during any such period of employment;
(iv) members of the Kansas police and firemen's retirement system
pursuant to K.S.A. 74-4951 et seq., and amendments thereto, members of
the retirement system for judges pursuant to K.S.A. 20-2601 et seq., and
amendments thereto, or members of the state board of regents retirement
plan pursuant to K.S.A. 74-4925 et seq., and amendments thereto;
(v) employed as substitute teachers without a contract or officers,
employees or appointees of the legislature;
(vi) a poll worker hired to work an election day for a county election
officer responsible for conducting all official elections held in the county;
(vii) employed by, or have accepted employment from, a participating
employer prior to May 1, 2015. Any break in continuous employment by a
retirant or move to a different position by a retirant during the effective
period of this subsection shall be deemed new employment and shall
subject the retirant to the provisions of this subsection. Commencing
January 1, 2018, the participating employer of a retirant described in this
subsection (7)(b)(vii) subparagraph who is employed in a covered
position, as defined in K.S.A. 74-49,202, and amendments thereto, shall
pay to the system the statutorily prescribed employer contribution rate on
the first $25,000 of such retirant's compensation in a calendar year and a
30% employer contribution on any compensation in excess of $25,000 in a
calendar year during any such period of employment. If a retirant is
employed by more than one participating employer or performing duties in
more than one position, contributions shall be made on compensation from
all such employment for that calendar year. If a retirant is employed in a
non-covered position, no employer contribution shall be paid to the
system;
(viii) state or local elected officials. A retirant shall not be employed
in an elected office within 30 days of such retirant's retirement, except that
if a retirant is filling a vacant elected office, no waiting period shall be
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required; or
(ix) employed by the Kansas academies of the United States
department of defense STARBASE program; or
(x) employed as a licensed professional nurse, licensed practical
nurse or in a direct support position of an affiliated employer organized
under K.S.A. 19-4001, and amendments thereto, and defined under K.S.A.
39-1803, and amendments thereto.
(c) The participating employer shall enroll all retirants, including
retirants under subsection (7)(b)(i) (6)(b)(i), (ii), (iii), (vii) and (viii), and
report to the system when compensation is paid to a retirant as provided in
this subsection. Such report shall contain a certification by the appointing
authority of the participating employer that any hired retirant has not been
employed by the participating employer within 60 days of such retirant's
retirement and that there was no prearranged agreement for employment
between the participating employer and the hired retirant. Upon request of
the executive director of the system, the participating employer shall
provide such information as may be needed by the executive director to
carry out the provisions of this subsection. No retirant shall make
contributions to the system or receive credit for service while employed
under the provisions of this subsection.
(d) A participating employer may employ a retirant without regard to
the compensation limitation in this subsection for a period of one calendar
year or one school year, as the case may be, if the following requirements
are met:
(i) The employer certifies to the board that the position being filled
has been vacated due to an unexpected emergency or the employer has
been unsuccessful in filling the position;
(ii) the employer pays to the system a 30% employer contribution
based on the retirant's compensation during any such period of
employment; and
(iii) the employer maintains documentation of its efforts to fill the
position with a non-retirant and provides such documentation to the joint
committee on pensions, investments and benefits upon request of the
committee.
The provisions of this paragraph shall expire on January 1, 2018.
(e) An employer may submit a written assurance protocol to the
system to extend the exception provided for in subsection (7)(d) by one-
year increments for a total extension not to exceed three years. A written
assurance protocol shall be submitted to the system for each one-year
increment extension. If a school district submits a written assurance
protocol, such written assurance protocol shall be signed by the
superintendent and the board president of such school district. If a
municipality, as defined in K.S.A. 75-1117, and amendments thereto, other
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than a school district, submits a written assurance protocol, such written
assurance protocol shall be signed by the governing body or such
governing body's designee for such municipality. Such written assurance
protocol shall state that the position was advertised on multiple platforms
for a minimum of 30 calendar days and that at least one of the following
conditions occurred:
(i) No applications were submitted for the position;
(ii) if applications were submitted, none of the applicants met the
reference screening criteria of the employer; or
(iii) if applications were submitted, none of the applicants possessed
the appropriate licensure, certification or other necessary credentials for
the position.
The provisions of this paragraph shall expire on January 1, 2018.
(f) Retirants who are independent contractors or employees of third-
party entities who contract with a participating employer, shall not be
subject to the compensation limitation or employer contribution
requirements in this subsection or the requirements of subsection
paragraph (7)(c) regarding enrollment and reporting to the system, so long
as all of the following apply:
(A) The contractual relationship was not created to allow the retirant
to continue employment with the participating employer after retirement in
a position similar to the one such retirant held prior to retirement;
(B) the activities performed by the independent contractor or third-
party entity are not normally performed exclusively by employees of that
participating employer; and
(C) the retirant meets the classification of independent contractor as
provided in K.S.A. 44-768, and amendments thereto, or activities
performed by the third-party entity that employs the retirant are performed
on a limited-term basis and the third-party entity is not a participating
employer in the system.
(g)(e) Nothing in this subsection shall be construed to create any
right, or to authorize the creation of any right, which is not subject to
amendment or nullification by act of the legislature.
(8)(7) (a) Except as provided in subsection (8)(b) paragraph (b), if
determined by the retirement system that a retirant entered into a
prearranged agreement for employment with a participating employer
prior to such retirant's retirement and prior to the end of the subsequent 60-
day waiting period, or the 180-day waiting period under subsection (10)
(9), the monthly retirement benefit of such retirant shall be suspended
during the period that begins on the month in which the retirant is re-
employed and ends six months after the retirant's termination of such
employment. The retirant shall repay to the retirement system all monthly
retirement benefits paid to the retirant by the retirement system that the
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retirant received after such employment began. The participating employer
which hired such retirant shall be required to pay to the system any fees,
fines, penalties or any other cost imposed by the internal revenue service
and indemnify the system for any cost incurred by the system to defend
any action brought by the internal revenue service based on in-service
distributions which are a result of any determined prearranged agreement
and for any cost incurred by the system to collect any monthly retirement
benefit required to be repaid by such retirant pursuant to this subsection.
(b) For members who retired on and after July 1, 2016, and on or
before July 1, 2019, if determined by the retirement system that a retirant
entered into a prearranged agreement for employment with a participating
employer prior to such retirant's retirement date and the subsequent 60-day
waiting period, or the 180-day waiting period under subsection (10) (9),
and upon being notified of the violation, the retirant terminated such
employment, the provisions of subsection paragraph (a) shall not apply. If
any retirant had benefits suspended prior to July 1, 2019, such benefits
shall be reimbursed by the retirement system, if the retirant terminated
such prearranged employment in accordance with the provisions of this
act. On and after July 1, 2019, the executive director may waive such
penalties under this subsection if it is determined by the retirement system
that any of the following conditions were satisfied:
(i) The retirant's total length of reemployment was less than 21
calendar days;
(ii) the retirant's total compensation during the total length of
reemployment was less than 10% of the amount of such retirant's
retirement benefit that would be suspended pursuant to this subsection; or
(iii) other facts and circumstances indicated that the retirant would
not have been reemployed but for an error on the part of the participating
employer or the retirement system in verifying the retirement status of
such retirant and such retirant immediately terminated employment upon
being notified of the violation.
(c) On or before the first day of each regular session of the
legislature, beginning with the 2020 regular session, the executive director
shall submit an annual report on the number of waivers granted pursuant to
subsection (8)(b) paragraph (b) in the prior calendar year to the joint
committee on pensions, investments and benefits, the house of
representatives standing committee on financial institutions and pensions
and the senate standing committee on financial institutions and insurance,
or the successors of such committees.
(9)(8) For the purposes of this section a prearranged agreement for
employment may be determined by whether the facts and circumstances of
the situation indicate that the employer and employee reasonably
anticipated that further services would be performed after the employee's
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retirement.
(10)(9) (a) Notwithstanding the provisions of subsection (5) or (7) (6)
to the contrary, commencing January 1, 2018, any retirant who is retired
more than 60 days, if such retirant's age on the date of retirement is 62 or
older, or is retired more than 180 days, if such retirant's age on the date of
retirement is less than 62, and who is subsequently hired without any
prearranged agreement with the participating employer in a covered
position, as defined in K.S.A. 74-49,202, and amendments thereto, or an
independent contractor or a third-party entity who contracts service to fill
such covered position shall not be subject to an earnings limitation that
when met or exceeded requires that the retirant not receive a retirement
benefit for any month for which such retirant serves in such covered
position. The participating employer of such retirant shall pay to the
system the statutorily prescribed employer contribution rate on the first
$25,000 of such retirant's compensation in a calendar year and a 30%
employer contribution on any compensation in excess of $25,000 in a
calendar year during any such period of employment. If a retirant is
employed by more than one participating employer or performing duties in
more than one position, contributions shall be made on compensation from
all such employment for that calendar year.
(b) Notwithstanding the provisions of subsection (5) or (7) (6) to the
contrary, commencing January 1, 2018, any retirant who is retired more
than 60 days, if such retirant's age on the date of retirement is 62 or older,
or is retired more than 180 days, if such retirant's age on the date of
retirement is less than 62, and who is subsequently hired without any
prearranged agreement with the participating employer in a non-covered
position, or an independent contractor or a third-party entity who contracts
service to fill such non-covered position, shall not be subject to an
earnings limitation that when met or exceeded requires that the retirant not
receive a retirement benefit for any month for which such retirant serves in
such non-covered position. No employer contribution shall be paid to the
system on compensation paid to a retirant hired in a non-covered position.
(c) The participating employer shall enroll all retirants, including
retirants under subsection (7)(b)(i) (6)(b)(i), (ii), (iii), (vii) and (viii), and
report to the system when compensation is paid to a retirant as provided in
this subsection. Such report shall contain a certification by the appointing
authority of the participating employer that any hired retirant has not been
employed by the participating employer within 60 days of such retirant's
retirement in the case of a retirant whose age on the date of retirement is
62 or older, or within 180 days of such retirant's retirement in the case of a
retirant whose age on the date of retirement is less than 62, and that there
was no prearranged agreement for employment between the participating
employer and the hired retirant. Upon request of the executive director of
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the system, the participating employer shall provide such information as
may be needed by the executive director to carry out the provisions of this
subsection. No retirant shall make contributions to the system or receive
credit for service while employed under the provisions of this subsection.
(d) The provisions of this subsection relating to an earnings limitation
and employer contributions shall not apply to any retirant described in
subsection (7)(b) (6)(b) or to retirants who are independent contractors or
employees of third-party entities who contract with a participating
employer as described in subsection (7)(f) (6)(d), except as specifically
provided in this subsection.
(e) Nothing in this subsection shall be construed to create any right,
or to authorize the creation of any right that is not subject to amendment or
nullification by act of the legislature.
Sec. 2. K.S.A. 2022 Supp. 74-4914 is hereby repealed.
Sec. 3. This act shall take effect and be in force from and after its
publication in the statute book.
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