Old | New | Differences | |
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1 | + | Session of 2024 | |
1 | 2 | HOUSE BILL No. 2711 | |
2 | - | AN ACT concerning state-managed funds; relating to investment procedures, standards and | |
3 | - | requirements therefor and certain retirement benefits therefrom; enacting the | |
4 | - | countries of concern divestment act; requiring divestment from investments with | |
5 | - | countries of concern and providing exceptions therefor; prohibiting investments and | |
6 | - | deposits with any bank or company domiciled in a country of concern; indemnifying | |
7 | - | state-managed funds with respect to actions taken in compliance with such act; | |
8 | - | providing an expiration date for such act; relating to the Kansas public employees | |
9 | - | retirement system and systems thereunder; Kansas public employees retirement fund; | |
10 | - | increasing the statutory alternative investment percentage limit to 25%; increasing | |
11 | - | the membership waiting period for direct support positions of community service | |
12 | - | providers; increasing the lump-sum death benefit; employment after retirement; | |
13 | - | increasing the amount of retirant compensation subject to the statutory employer | |
14 | - | contribution rate; providing an exemption for retirants employed by a community | |
15 | - | developmental disability organization or a community service provider affiliated with | |
16 | - | a community developmental disability organization in a licensed professional nurse, | |
17 | - | licensed practical nurse or direct support position; increasing the earnings limit for | |
18 | - | members of the Kansas police and firemen's retirement system; amending K.S.A. 74- | |
19 | - | 4937, 74-4957, 74-4957a, 74-4989 and 74-49,315 and K.S.A. 2023 Supp. 74-4911, | |
20 | - | 74-4914 and 74-4921 and repealing the existing sections. | |
3 | + | By Committee on Financial Institutions and Pensions | |
4 | + | Requested by Representative Hoye | |
5 | + | 2-6 | |
6 | + | AN ACT concerning retirement and pensions; relating to the Kansas public | |
7 | + | employees retirement system; employment after retirement; increasing | |
8 | + | the amount of retirant compensation subject to the statutory employer | |
9 | + | contribution rate; amending K.S.A. 74-4937 and K.S.A. 2023 Supp. 74- | |
10 | + | 4914 and repealing the existing sections. | |
21 | 11 | Be it enacted by the Legislature of the State of Kansas: | |
22 | - | New Section 1. The provisions of sections 1 through 7, and | |
23 | - | amendments thereto, shall be known and may be cited as the countries | |
24 | - | of concern divestment act. | |
25 | - | New Sec. 2. As used in this act: | |
26 | - | (a) "Act" means the countries of concern divestment act. | |
27 | - | (b) "Company" means any: | |
28 | - | (1) For-profit corporation, partnership, limited partnership, limited | |
29 | - | liability partnership, limited liability company, joint venture, trust, | |
30 | - | association, sole proprietorship or other organization, including any: | |
31 | - | (A) Subsidiary of such company, a majority ownership interest of | |
32 | - | which is held by such company; | |
33 | - | (B) parent company that holds a majority ownership of such | |
34 | - | company; and | |
35 | - | (C) other affiliate or business association of such company whose | |
36 | - | primary purpose is to make a profit; or | |
37 | - | (2) nonprofit organization. | |
38 | - | (c) (1) "Country of concern" means the following: | |
39 | - | (A) People's republic of China, including the Hong Kong special | |
40 | - | administrative region; | |
41 | - | (B) republic of Cuba; | |
42 | - | (C) islamic republic of Iran; | |
43 | - | (D) democratic people's republic of Korea; | |
44 | - | (E) Russian federation; and | |
45 | - | (F) Bolivarian republic of Venezuela. | |
46 | - | (2) "Country of concern" does not include the republic of China | |
47 | - | (Taiwan). | |
48 | - | (d) "Covered transaction" means the same as defined in 31 C.F.R. | |
49 | - | § 800.213, as in effect on July 1, 2024. | |
50 | - | (e) "Covered control transaction" means the same as defined in 31 | |
51 | - | C.F.R. § 800.210, as in effect on July 1, 2024. | |
52 | - | (f) "Domicile" means the country where: | |
53 | - | (1) A company is organized; | |
54 | - | (2) a company completes a substantial portion of its business; or | |
55 | - | (3) a majority of a company's ownership interest is held. | |
56 | - | (g) "Person" means an individual. | |
57 | - | (h) "Person owned or controlled by or subject to the jurisdiction or | |
58 | - | direction of a country of concern" means any: | |
59 | - | (1) Person, wherever located, who is a citizen of a nation-state | |
60 | - | controlled by a country of concern, unless such person is a lawful | |
61 | - | permanent resident of the United States; or | |
62 | - | (2) corporation, partnership, association or other organization | |
63 | - | organized under the laws of a nation-state controlled by a country of | |
64 | - | concern. | |
65 | - | (i) "State agency" means any department, authority, bureau, | |
66 | - | division, office or other governmental agency of this state. | |
67 | - | (j) "State-managed fund" means: | |
68 | - | (1) The Kansas public employees retirement fund managed by the HOUSE BILL No. 2711—page 2 | |
69 | - | board of trustees of the Kansas public employees retirement system in | |
70 | - | accordance with K.S.A. 74-4921, and amendments thereto; | |
71 | - | (2) the pooled money investment portfolio managed by the pooled | |
72 | - | money investment board in accordance with article 42 of chapter 75 of | |
73 | - | the Kansas Statutes Annotated, and amendments thereto; and | |
74 | - | (3) any other fund that is sponsored or managed by a state agency. | |
75 | - | New Sec. 3. (a) (1) Notwithstanding the provisions of K.S.A. 74- | |
76 | - | 4921, and amendments thereto, or any other statute to the contrary, and | |
77 | - | except as provided in paragraph (2), a state-managed fund shall sell, | |
78 | - | redeem, divest or withdraw all publicly traded securities of any country | |
79 | - | of concern or person owned or controlled by or subject to the | |
80 | - | jurisdiction or direction of a country of concern in accordance with the | |
81 | - | following schedule: | |
82 | - | (A) At least 50% of such assets shall be removed from the state- | |
83 | - | managed fund's assets under management not later than July 1, 2025, or | |
84 | - | one year from the date section 2, and amendments thereto, is amended | |
85 | - | to include such country of concern if amended after July 1, 2024, | |
86 | - | unless the state-managed fund determines that a later date is more | |
87 | - | prudent based on a good faith exercise of the state-managed fund's | |
88 | - | fiduciary discretion and subject to subparagraph (B); and | |
89 | - | (B) 100% of such assets shall be removed from the state-managed | |
90 | - | fund's assets under management not later than January 1, 2026, or one | |
91 | - | year from the date section 2, and amendments thereto, is amended to | |
92 | - | include such country of concern if amended after July 1, 2024. | |
93 | - | (2) If a country of concern takes action to prohibit or restrict the | |
94 | - | selling, redeeming, divesting or withdrawing of publicly traded | |
95 | - | securities of any country of concern or person owned or controlled by | |
96 | - | or subject to the jurisdiction or direction of a country of concern | |
97 | - | beyond the scheduled removal dates provided in paragraph (1), the | |
98 | - | state-managed fund shall remove 100% of such assets from the state- | |
99 | - | managed fund's assets not later than one year from the date that such | |
100 | - | action is ended by such country of concern. | |
101 | - | (b) A state-managed fund shall not knowingly acquire securities of | |
102 | - | any country of concern or person owned or controlled by or subject to | |
103 | - | the jurisdiction or direction of a country of concern. | |
104 | - | (c) A state-managed fund shall not invest or make a deposit in any | |
105 | - | bank that is domiciled in a country of concern. | |
106 | - | New Sec. 4. (a) Notwithstanding the provisions of K.S.A. 74- | |
107 | - | 4921, and amendments thereto, or any other statute to the contrary, a | |
108 | - | state-managed fund shall divest from any indirect holdings in actively | |
109 | - | or passively managed investment funds containing publicly traded | |
110 | - | securities of any country of concern or person owned or controlled by | |
111 | - | or subject to the jurisdiction or direction of a country of concern. Such | |
112 | - | state-managed fund may submit letters to the managers of each | |
113 | - | investment fund containing publicly traded securities of any country of | |
114 | - | concern or person owned or controlled by or subject to the jurisdiction | |
115 | - | or direction of a country of concern requesting that they remove such | |
116 | - | publicly traded securities from the fund or create a similar actively or | |
117 | - | passively managed fund with indirect holdings devoid of such publicly | |
118 | - | traded securities. If a manager creates a similar fund with substantially | |
119 | - | the same management fees and substantially the same level of | |
120 | - | investment risk and anticipated return, the state-managed fund may | |
121 | - | replace all applicable investments with investments in the similar fund | |
122 | - | in a time frame consistent with prudent fiduciary standards but not later | |
123 | - | than the 450 | |
124 | - | th | |
125 | - | day after the date the fund is created. If a manager does | |
126 | - | not create such similar fund, the state-managed fund shall divest from | |
127 | - | such indirect holdings in actively or passively managed investment | |
128 | - | funds. | |
129 | - | (b) (1) The provisions of this act shall not apply to any real estate | |
130 | - | or private equity investment commitment made by a state-managed | |
131 | - | fund prior to July 1, 2024, or to a real estate or private equity | |
132 | - | investment commitment made by a state-managed fund prior to the date | |
133 | - | that section 2, and amendments thereto, is amended to include a | |
134 | - | country of concern, if amended after July 1, 2024. HOUSE BILL No. 2711—page 3 | |
135 | - | (2) On and after July 1, 2024, a state-managed fund shall not make | |
136 | - | any new real estate or private equity investment commitment in a | |
137 | - | person owned or controlled by or subject to the jurisdiction of a country | |
138 | - | of concern. | |
139 | - | New Sec. 5. Not later than the first day of the regular session of | |
140 | - | the legislature, each year, each state-managed fund shall file a report | |
141 | - | with the legislature and the Kansas public employees retirement system | |
142 | - | shall also file such report with the joint committee on pensions, | |
143 | - | investments and benefits that: | |
144 | - | (a) Identifies all securities sold, redeemed, divested or withdrawn | |
145 | - | in compliance with section 3(a), and amendments thereto; | |
146 | - | (b) identifies amendments to section 2, and amendments thereto, | |
147 | - | that add or remove a country of concern after the later of July 1, 2024, | |
148 | - | or the last date such information was reported under this section; and | |
149 | - | (c) summarizes any changes made under section 4, and | |
150 | - | amendments thereto. | |
151 | - | New Sec. 6. In a cause of action based on an action, inaction, | |
152 | - | decision, divestment, investment, report or other determination made or | |
153 | - | taken in compliance with this act, without regard to whether the person | |
154 | - | performed services for compensation, the state shall indemnify and | |
155 | - | hold harmless for actual damages, court costs and attorney fees | |
156 | - | adjudged against members of a state-managed fund or any other | |
157 | - | officers of such state-managed fund related to the act or omission on | |
158 | - | which the damages are based and defend the state-managed fund and | |
159 | - | any of such state-managed fund's current and former employees. | |
160 | - | New Sec. 7. (a) The provisions of this act shall expire on July 1, | |
161 | - | 2029. | |
162 | - | (b) On or after July 1, 2028, but before July 15, 2028, the Kansas | |
163 | - | public employees retirement system shall notify the speaker of the | |
164 | - | house of representatives, the president of the senate and the chairperson | |
165 | - | of the joint committee on pensions, investments and benefits that this | |
166 | - | act is scheduled to expire on July 1, 2029. | |
167 | - | Sec. 8. K.S.A. 2023 Supp. 74-4911 is hereby amended to read as | |
168 | - | follows: 74-4911. (1) Any employee of a participating employer other | |
169 | - | than an elected official on the entry date of such employer shall be a | |
170 | - | member of the system on either the entry date or the first day of the | |
171 | - | payroll period coinciding with or following the completion of one year | |
172 | - | of service, whichever is later, except that an employee of a participating | |
173 | - | employer who was first employed by a participating employer on or | |
174 | - | after July 1, 2008, but before July 1, 2009, shall be a member on July 1, | |
175 | - | 2009, and except that an employee who is first employed by a | |
176 | - | participating employer on or after July 1, 2009, shall be a member of | |
177 | - | the system on the first day of employment of such employee with such | |
178 | - | participating employer. On and after July 1, 2019, employees employed | |
179 | - | in direct support positions of an affiliated employer organized under | |
180 | - | K.S.A. 19-4001, and amendments thereto, and or defined under K.S.A. | |
181 | - | 39-1803, and amendments thereto, may become a member of the | |
182 | - | system on the first day of the payroll period coinciding with or | |
183 | - | following the completion of a two-year period of training, whichever is | |
184 | - | later. For purposes of this act occasional breaks in service which shall | |
185 | - | not exceed an aggregate of 10 days in any such year shall not constitute | |
186 | - | a break in service for purposes of determining the membership date of | |
187 | - | such employee. | |
188 | - | (2) Except as otherwise provided in this subsection, any employee | |
189 | - | other than an elected official who is employed by a participating | |
190 | - | employer after the entry date of such employer shall be a member of | |
191 | - | the system on the first day of the payroll period coinciding with or | |
192 | - | following completion of one year of continuous service. For purposes | |
193 | - | of this act, occasional breaks in service which shall not exceed an | |
194 | - | aggregate of 10 days in any such year shall not constitute a break in | |
195 | - | continuous service for purposes of determining the membership date of | |
196 | - | such employee. For purposes of this subsection, any employee of a | |
197 | - | local governmental unit which has its own pension plan who becomes | |
198 | - | an employee of a participating employer as a result of a merger or HOUSE BILL No. 2711—page 4 | |
199 | - | consolidation of services provided by local governmental units, which | |
200 | - | occurred on January 1, 1994, may count service with such local | |
201 | - | governmental unit in determining whether such employee has met the | |
202 | - | one year of continuous service requirement contained in this | |
203 | - | subsection. | |
204 | - | (3) Any employee who is an elected official and is eligible to join | |
205 | - | the system shall file, within 90 days after taking the oath of office, an | |
206 | - | irrevocable election to become or not to become a member of the | |
207 | - | system. Such election shall become effective immediately upon making | |
208 | - | such election, if such election is made within 14 days of taking the oath | |
209 | - | of office or, otherwise, on the first day of the first payroll period of the | |
210 | - | first quarter following receipt of the election in the office of the | |
211 | - | retirement system. In the event that such elected official fails to file the | |
212 | - | election to become a member of the retirement system, it shall be | |
213 | - | presumed that such person has elected not to become a member. | |
214 | - | (4) Except as otherwise required by USERRA, any employee | |
215 | - | other than an elected official who is in military service or on leave of | |
216 | - | absence on the entry date of such employee's employer shall become a | |
217 | - | member of the system upon returning to active employment or on the | |
218 | - | first day of the payroll period coinciding with or following the | |
219 | - | completion of one year of service, whichever is later. For purposes of | |
220 | - | this act, occasional breaks in service which shall not exceed an | |
221 | - | aggregate of 10 days in any such year shall not constitute a break in | |
222 | - | service for purposes of determining the membership date of such | |
223 | - | employee. | |
224 | - | (5) Any employee of the state of Kansas other than an elected | |
225 | - | official, who is receiving or is eligible for assistance by the state board | |
226 | - | of regents in the purchase of a retirement annuity under K.S.A. 74- | |
227 | - | 4925, and amendments thereto, and who becomes ineligible for such | |
228 | - | assistance because such employee's position is reclassified to a position | |
229 | - | in the classified service under the Kansas civil service act, or who | |
230 | - | becomes ineligible for such assistance because such person accepts and | |
231 | - | transfers to a position in the classified service under the Kansas civil | |
232 | - | service act shall be a member of the system on the first day of the | |
233 | - | payroll period coinciding with or following the effective date of such | |
234 | - | reclassification or transfer. Any such employee who became ineligible | |
235 | - | for such assistance prior to the effective date of this act April 15, 1977, | |
236 | - | because of such a reclassification or such a transfer occurring prior to | |
237 | - | the effective date of this act April 15, 1977, and who is not a member of | |
238 | - | the system on the effective date of this act April 15, 1977, shall be a | |
239 | - | member of the system on the first day of the payroll period coinciding | |
240 | - | with or following the effective date of this act April 15, 1977. | |
241 | - | (6) Any employee of the state board of regents or of an | |
242 | - | educational institution under its management, other than an elected | |
243 | - | official, who is a member of the system and who becomes ineligible to | |
244 | - | be a member of the system because such employee's position is | |
245 | - | reclassified to a position under the Kansas civil service act which is | |
246 | - | eligible for assistance by the state board of regents in the purchase of a | |
247 | - | retirement annuity under K.S.A. 74-4925, and amendments thereto, or | |
248 | - | who becomes ineligible to be a member of the system because such | |
249 | - | employee transfers to a position under the Kansas civil service act | |
250 | - | which is eligible for such assistance, shall become eligible for such | |
251 | - | assistance in accordance with the provisions of K.S.A. 74-4925, and | |
252 | - | amendments thereto, unless such employee files a written election in | |
253 | - | the office of the retirement system, in the form and manner prescribed | |
254 | - | by the board of trustees thereof, to remain a member of the system prior | |
255 | - | to the first day of the first complete payroll period occurring after the | |
256 | - | effective date of such reclassification or transfer. Failure to file such | |
257 | - | written election shall be presumed to be an election not to remain a | |
258 | - | member of the system and to become eligible for assistance by the state | |
259 | - | board of regents in the purchase of a retirement annuity under K.S.A. | |
260 | - | 74-4925, and amendments thereto. Such election, whether to remain a | |
261 | - | member of the system or to become eligible for such assistance, shall | |
262 | - | be effective as of the effective date of such reclassification or transfer, HOUSE BILL No. 2711—page 5 | |
263 | - | and shall be irrevocable. | |
264 | - | (7) Any elected official who at the time of becoming an elected | |
265 | - | official is already a member of the system by being or having been an | |
266 | - | employee of a participating employer shall continue as a member of the | |
267 | - | system. | |
268 | - | Sec. 9. K.S.A. 2023 Supp. 74-4914 is hereby amended to read as | |
12 | + | Section 1. K.S.A. 2023 Supp. 74-4914 is hereby amended to read as | |
269 | 13 | follows: 74-4914.(1) The normal retirement date for a member of the | |
270 | 14 | system shall be the first day of the month coinciding with or following | |
271 | - | termination of employment with any participating employer not | |
272 | - | followed by employment with any participating employer within 60 | |
273 | - | days, or 180 days as provided in subsection (10) (9), and without any | |
274 | - | prearranged agreement for employment with any participating | |
275 | - | employer, and the attainment of age 65 or, commencing July 1, 1993, | |
276 | - | age 62 with the completion of 10 years of credited service or the first | |
277 | - | day of the month coinciding with or following the date that the total of | |
278 | - | the number of years of credited service and the number of years of | |
279 | - | attained age of the member is equal to or more than 85. In no event | |
280 | - | shall a normal retirement date for a member be before six months after | |
281 | - | the entry date of the participating employer by whom such member is | |
282 | - | employed. A member may retire on the normal retirement date or on the | |
283 | - | first day of any month thereafter upon the filing with the office of the | |
284 | - | retirement system of an application in such form and manner as the | |
285 | - | board shall prescribe. Such application shall contain a certification by | |
286 | - | the member that the member will not be employed with any | |
287 | - | participating employer within 60 days, or 180 days as provided in | |
288 | - | subsection (10) (9), of retirement and the member has not entered into a | |
289 | - | prearranged agreement for employment with any participating | |
290 | - | employer. Nothing herein shall prevent any person, member or retirant | |
291 | - | from being employed, appointed or elected as an employee, appointee, | |
292 | - | officer or member of the legislature. Elected officers may retire from | |
293 | - | the system on any date on or after the attainment of the normal | |
294 | - | retirement date, but no retirement benefits payable under this act shall | |
295 | - | be paid until the member has terminated such member's office. | |
15 | + | termination of employment with any participating employer not followed | |
16 | + | by employment with any participating employer within 60 days, or 180 | |
17 | + | days as provided in subsection (10) (9), and without any prearranged | |
18 | + | agreement for employment with any participating employer, and the | |
19 | + | attainment of age 65 or, commencing July 1, 1993, age 62 with the | |
20 | + | completion of 10 years of credited service or the first day of the month | |
21 | + | coinciding with or following the date that the total of the number of years | |
22 | + | of credited service and the number of years of attained age of the member | |
23 | + | is equal to or more than 85. In no event shall a normal retirement date for a | |
24 | + | member be before six months after the entry date of the participating | |
25 | + | employer by whom such member is employed. A member may retire on | |
26 | + | the normal retirement date or on the first day of any month thereafter upon | |
27 | + | the filing with the office of the retirement system of an application in such | |
28 | + | form and manner as the board shall prescribe. Such application shall | |
29 | + | contain a certification by the member that the member will not be | |
30 | + | employed with any participating employer within 60 days, or 180 days as | |
31 | + | provided in subsection (10) (9), of retirement and the member has not | |
32 | + | entered into a prearranged agreement for employment with any | |
33 | + | participating employer. Nothing herein shall prevent any person, member | |
34 | + | or retirant from being employed, appointed or elected as an employee, | |
35 | + | appointee, officer or member of the legislature. Elected officers may retire | |
36 | + | from the system on any date on or after the attainment of the normal | |
37 | + | retirement date, but no retirement benefits payable under this act shall be | |
38 | + | paid until the member has terminated such member's office. | |
296 | 39 | (2) No retirant shall make contributions to the system or receive | |
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297 | 75 | service credit for any service after the date of retirement. | |
298 | 76 | (3) Any member who is an employee of an affiliating employer | |
299 | 77 | pursuant to K.S.A. 74-4954b, and amendments thereto, and has not | |
300 | 78 | withdrawn such member's accumulated contributions from the Kansas | |
301 | 79 | police and firemen's retirement system may retire before such member's | |
302 | 80 | normal retirement date on the first day of any month coinciding with or | |
303 | 81 | following the attainment of age 55. | |
304 | - | (4) Any member may retire before such member's normal | |
305 | - | retirement date on the first day of any month coinciding with or | |
306 | - | following termination of employment with any participating employer | |
307 | - | not followed by employment with any participating employer within 60 | |
308 | - | days, or 180 days as provided in subsection (10) (9), and the attainment | |
309 | - | of age 55 with the completion of 10 years of credited service, but in no | |
310 | - | event before six months after the entry date, upon the filing with the | |
311 | - | office of the retirement system of an application for retirement in such | |
312 | - | form and manner as the board shall prescribe. The member's | |
313 | - | application for retirement shall contain a certification by the member | |
314 | - | that the member will not be employed with any participating employer | |
315 | - | within 60 days, or 180 days as provided in subsection (10) (9), of | |
316 | - | retirement and the member has not entered into a prearranged | |
317 | - | agreement for employment with any participating employer. | |
318 | - | (5) Except as provided in subsections (7) and (10), on or after July | |
319 | - | 1, 2006, through December 31, 2017, for any retirant who is first | |
320 | - | employed or appointed in or to any position or office by a participating | |
321 | - | employer other than a participating employer for which such retirant | |
322 | - | was employed or appointed during the final two years of such retirant's | |
323 | - | participation, and, on or after April 1, 2009, for any retirant who is | |
324 | - | employed by a third-party entity who contracts services with a | |
325 | - | participating employer other than a participating employer for which | |
326 | - | such retirant was employed or appointed during the final two years of HOUSE BILL No. 2711—page 6 | |
327 | - | such retirant's participation to fill a position covered under K.S.A. 72- | |
328 | - | 2215(a), and amendments thereto, with such retirant, such participating | |
329 | - | employer shall pay to the system the actuarially determined employer | |
330 | - | contribution and the statutorily prescribed employee contribution based | |
331 | - | on the retirant's compensation during any such period of employment | |
332 | - | or appointment. If a retirant is employed or appointed in or to any | |
333 | - | position or office for which compensation for service is paid in an | |
334 | - | amount equal to $25,000 or more in any one calendar year between | |
335 | - | July 1, 2016, and January 1, 2018, by any participating employer for | |
336 | - | which such retirant was employed or appointed during the final two | |
337 | - | years of such retirant's participation, and, on or after April 1, 2009, by | |
338 | - | any third-party entity who contracts services to fill a position covered | |
339 | - | under K.S.A. 72-2215(a), and amendments thereto, with such retirant | |
340 | - | with a participating employer for which such retirant was employed or | |
341 | - | appointed during the final two years of such retirant's participation, | |
342 | - | such retirant shall not receive any retirement benefit for any month for | |
343 | - | which such retirant serves in such position or office. The participating | |
344 | - | employer who employs such retirant whether by contract directly with | |
345 | - | the retirant or through an arrangement with a third-party entity shall | |
346 | - | report to the system within 30 days of when the compensation paid to | |
347 | - | the retirant is equal to or exceeds any limitation provided by this | |
348 | - | section. Any participating employer who contracts services with any | |
349 | - | such third-party entity to fill a position covered under K.S.A. 72- | |
350 | - | 2215(a), and amendments thereto, shall include in such contract a | |
351 | - | provision or condition which requires the third-party entity to provide | |
352 | - | the participating employer with the necessary compensation paid | |
82 | + | (4) Any member may retire before such member's normal retirement | |
83 | + | date on the first day of any month coinciding with or following | |
84 | + | termination of employment with any participating employer not followed | |
85 | + | by employment with any participating employer within 60 days, or 180 | |
86 | + | days as provided in subsection (10) (9), and the attainment of age 55 with | |
87 | + | the completion of 10 years of credited service, but in no event before six | |
88 | + | months after the entry date, upon the filing with the office of the retirement | |
89 | + | system of an application for retirement in such form and manner as the | |
90 | + | board shall prescribe. The member's application for retirement shall | |
91 | + | contain a certification by the member that the member will not be | |
92 | + | employed with any participating employer within 60 days, or 180 days as | |
93 | + | provided in subsection (10) (9), of retirement and the member has not | |
94 | + | entered into a prearranged agreement for employment with any | |
95 | + | participating employer. | |
96 | + | (5) Except as provided in subsections (7) and (10), on or after July 1, | |
97 | + | 2006, through December 31, 2017, for any retirant who is first employed | |
98 | + | or appointed in or to any position or office by a participating employer | |
99 | + | other than a participating employer for which such retirant was employed | |
100 | + | or appointed during the final two years of such retirant's participation, and, | |
101 | + | on or after April 1, 2009, for any retirant who is employed by a third-party | |
102 | + | entity who contracts services with a participating employer other than a | |
103 | + | participating employer for which such retirant was employed or appointed | |
104 | + | during the final two years of such retirant's participation to fill a position | |
105 | + | covered under K.S.A. 72-2215(a), and amendments thereto, with such | |
106 | + | retirant, such participating employer shall pay to the system the actuarially | |
107 | + | determined employer contribution and the statutorily prescribed employee | |
108 | + | contribution based on the retirant's compensation during any such period | |
109 | + | of employment or appointment. If a retirant is employed or appointed in or | |
110 | + | to any position or office for which compensation for service is paid in an | |
111 | + | amount equal to $25,000 or more in any one calendar year between July 1, | |
112 | + | 2016, and January 1, 2018, by any participating employer for which such | |
113 | + | retirant was employed or appointed during the final two years of such | |
114 | + | retirant's participation, and, on or after April 1, 2009, by any third-party | |
115 | + | entity who contracts services to fill a position covered under K.S.A. 72- | |
116 | + | 2215(a), and amendments thereto, with such retirant with a participating | |
117 | + | employer for which such retirant was employed or appointed during the | |
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161 | + | final two years of such retirant's participation, such retirant shall not | |
162 | + | receive any retirement benefit for any month for which such retirant serves | |
163 | + | in such position or office. The participating employer who employs such | |
164 | + | retirant whether by contract directly with the retirant or through an | |
165 | + | arrangement with a third-party entity shall report to the system within 30 | |
166 | + | days of when the compensation paid to the retirant is equal to or exceeds | |
167 | + | any limitation provided by this section. Any participating employer who | |
168 | + | contracts services with any such third-party entity to fill a position covered | |
169 | + | under K.S.A. 72-2215(a), and amendments thereto, shall include in such | |
170 | + | contract a provision or condition which requires the third-party entity to | |
171 | + | provide the participating employer with the necessary compensation paid | |
353 | 172 | information related to any such position filled by the third-party entity | |
354 | 173 | with a retirant to enable the participating employer to comply with | |
355 | - | provisions of this subsection relating to the payment of contributions | |
356 | - | and reporting requirements. The provisions and requirements provided | |
357 | - | for in amendments made in this act which relate to positions filled with | |
358 | - | a retirant or employment of a retirant by a third-party entity shall not | |
359 | - | apply to any contract for services entered into prior to April 1, 2009, | |
360 | - | between a participating employer and third-party entity as described in | |
361 | - | this subsection. Any retirant employed by a participating employer or a | |
362 | - | third-party entity as provided in this subsection shall not make | |
363 | - | contributions nor receive additional credit under such system for such | |
364 | - | service except as provided by this section. Upon request of the | |
365 | - | executive director of the system, the secretary of revenue shall provide | |
366 | - | such information as may be needed by the executive director to carry | |
367 | - | out the provisions of this act. The provisions of this subsection shall not | |
368 | - | apply to retirants employed as substitute teachers without a contract or | |
369 | - | officers, employees or appointees of the legislature. The provisions of | |
370 | - | this subsection shall not apply to members of the legislature. The | |
371 | - | provisions of this subsection shall not apply to any other elected | |
372 | - | officials. Commencing July 1, 2005, the provisions of this subsection | |
373 | - | shall not apply to retirants who either retired under the provisions of | |
374 | - | subsection (1), or, if they retired under the provisions of subsection (4), | |
375 | - | were retired more than 30 days prior to the effective date of this act and | |
376 | - | are licensed professional nurses or licensed practical nurses employed | |
377 | - | by the state of Kansas in an institution as defined in K.S.A. 76- | |
378 | - | 12a01(b) or K.S.A. 38-2302(k), and amendments thereto, the Kansas | |
379 | - | soldiers' home or the Kansas veterans' home. Nothing in this subsection | |
380 | - | shall be construed to create any right, or to authorize the creation of any | |
381 | - | right, which is not subject to amendment or nullification by act of the | |
382 | - | legislature. The participating employer of such retirant shall pay to the | |
383 | - | system the actuarially determined employer contribution based on the | |
384 | - | retirant's compensation during any such period of employment. The | |
174 | + | provisions of this subsection relating to the payment of contributions and | |
175 | + | reporting requirements. The provisions and requirements provided for in | |
176 | + | amendments made in this act which relate to positions filled with a retirant | |
177 | + | or employment of a retirant by a third-party entity shall not apply to any | |
178 | + | contract for services entered into prior to April 1, 2009, between a | |
179 | + | participating employer and third-party entity as described in this | |
180 | + | subsection. Any retirant employed by a participating employer or a third- | |
181 | + | party entity as provided in this subsection shall not make contributions nor | |
182 | + | receive additional credit under such system for such service except as | |
183 | + | provided by this section. Upon request of the executive director of the | |
184 | + | system, the secretary of revenue shall provide such information as may be | |
185 | + | needed by the executive director to carry out the provisions of this act. The | |
186 | + | provisions of this subsection shall not apply to retirants employed as | |
187 | + | substitute teachers without a contract or officers, employees or appointees | |
188 | + | of the legislature. The provisions of this subsection shall not apply to | |
189 | + | members of the legislature. The provisions of this subsection shall not | |
190 | + | apply to any other elected officials. Commencing July 1, 2005, the | |
191 | + | provisions of this subsection shall not apply to retirants who either retired | |
192 | + | under the provisions of subsection (1), or, if they retired under the | |
193 | + | provisions of subsection (4), were retired more than 30 days prior to the | |
194 | + | effective date of this act and are licensed professional nurses or licensed | |
195 | + | practical nurses employed by the state of Kansas in an institution as | |
196 | + | defined in K.S.A. 76-12a01(b) or K.S.A. 38-2302(k), and amendments | |
197 | + | thereto, the Kansas soldiers' home or the Kansas veterans' home. Nothing | |
198 | + | in this subsection shall be construed to create any right, or to authorize the | |
199 | + | creation of any right, which is not subject to amendment or nullification by | |
200 | + | act of the legislature. The participating employer of such retirant shall pay | |
201 | + | to the system the actuarially determined employer contribution based on | |
202 | + | the retirant's compensation during any such period of employment. The | |
385 | 203 | provisions of the subsection shall expire on January 1, 2018. | |
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386 | 247 | (6) For purposes of this section, any employee of a local | |
387 | - | governmental unit which that has its own pension plan who becomes | |
388 | - | ||
389 | - | consolidation of services provided by local governmental units, which | |
390 | - | ||
248 | + | governmental unit which that has its own pension plan who becomes an | |
249 | + | employee of a participating employer as a result of a merger or | |
250 | + | consolidation of services provided by local governmental units, which that | |
251 | + | occurred on January 1, 1994, may count service with such local | |
391 | 252 | governmental unit in determining whether such employee has met the | |
392 | 253 | years of credited service requirements contained in this section. | |
393 | - | (7)(6) (a) (i) Except as provided in K.S.A. 74-4937(3), (4), or (5), | |
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254 | + | (7)(6) (a) (i) Except as provided in K.S.A. 74-4937(3), (4), or (5), and | |
255 | + | amendments thereto, and the provisions of this subsection, commencing | |
256 | + | July 1, 2016, and ending January 1, 2018, any retirant who is employed or | |
257 | + | appointed in or to any position by a participating employer, an independent | |
258 | + | contractor or a third-party entity who contracts services with a | |
259 | + | participating employer to fill a position, without any prearranged | |
260 | + | agreement with such participating employer and not prior to 60 days after | |
261 | + | such retirant's retirement date, shall not receive any retirement benefit for | |
262 | + | any month in any calendar year in which the retirant receives | |
263 | + | compensation in an amount equal to $25,000 or more, pursuant to this | |
264 | + | subsection. Any participating employer who hires a retirant covered by this | |
265 | + | subsection shall pay to the system the statutorily prescribed employer | |
266 | + | contribution rate for such retirant, without regard to whether the retirant is | |
267 | + | receiving benefits. | |
407 | 268 | (ii) Commencing January 1, 2018, for all retirements that occurred | |
408 | - | prior to such date, any retirant who is employed or appointed in or to | |
409 | - | any position by a participating employer, an independent contractor or | |
410 | - | a third-party entity who contracts services with a participating | |
411 | - | employer to fill a position, without any prearranged agreement with | |
412 | - | such participating employer and not prior to 60 days after such | |
413 | - | retirant's retirement date, shall not be subject to an earnings limitation | |
414 | - | that when met or exceeded requires that the retirant not receive a | |
415 | - | retirement benefit for any month for which such retirant serves in such | |
416 | - | position. If a retirant is employed in a covered position, as defined in | |
417 | - | K.S.A. 74-49,202, and amendments thereto, the participating employer | |
418 | - | of such retirant shall pay to the system the statutorily prescribed | |
419 | - | employer contribution rate on the first $25,000 $40,000 of such | |
420 | - | retirant's compensation in a calendar year and a 30% employer | |
421 | - | contribution on any compensation in excess of $25,000 $40,000 in a | |
422 | - | calendar year during any such period of employment. If a retirant is | |
423 | - | employed by more than one participating employer or performing | |
424 | - | duties in more than one position, contributions shall be made on | |
425 | - | compensation from all such employment for that calendar year. If a | |
426 | - | retirant is employed in a non-covered position, no employer | |
427 | - | contribution shall be paid to the system. | |
269 | + | prior to such date, any retirant who is employed or appointed in or to any | |
270 | + | position by a participating employer, an independent contractor or a third- | |
271 | + | party entity who contracts services with a participating employer to fill a | |
272 | + | position, without any prearranged agreement with such participating | |
273 | + | employer and not prior to 60 days after such retirant's retirement date, shall | |
274 | + | not be subject to an earnings limitation that when met or exceeded requires | |
275 | + | that the retirant not receive a retirement benefit for any month for which | |
276 | + | such retirant serves in such position. If a retirant is employed in a covered | |
277 | + | position, as defined in K.S.A. 74-49,202, and amendments thereto, the | |
278 | + | participating employer of such retirant shall pay to the system the | |
279 | + | statutorily prescribed employer contribution rate on the first $25,000 | |
280 | + | $50,000 of such retirant's compensation in a calendar year and a 30% | |
281 | + | employer contribution on any compensation in excess of $25,000 $50,000 | |
282 | + | in a calendar year during any such period of employment. If a retirant is | |
283 | + | employed by more than one participating employer or performing duties in | |
284 | + | more than one position, contributions shall be made on compensation from | |
285 | + | all such employment for that calendar year. If a retirant is employed in a | |
286 | + | non-covered position, no employer contribution shall be paid to the | |
287 | + | system. | |
428 | 288 | (b) The provisions of this subsection shall not apply, except as | |
429 | 289 | specifically provided in this subsection, to retirants who are: | |
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430 | 333 | (i) Licensed professional nurses or licensed practical nurses | |
431 | - | employed by the state of Kansas in an institution as defined in K.S.A. | |
432 | - | 76-12a01(b) or 38-2302(k), and amendments thereto, the Kansas | |
433 | - | soldiers' home or the Kansas veterans' home. The participating | |
434 | - | employer of such retirant shall pay to the system the actuarially | |
435 | - | determined employer contribution based on the retirant's compensation | |
436 | - | and the statutorily prescribed employee contribution during any such | |
437 | - | period of employment; | |
438 | - | (ii) employed by a school district in a position as provided in | |
439 | - | K.S.A. 74-4937(3), (4) or (5), and amendments thereto; | |
334 | + | employed by the state of Kansas in an institution as defined in K.S.A. 76- | |
335 | + | 12a01(b) or 38-2302(k), and amendments thereto, the Kansas soldiers' | |
336 | + | home or the Kansas veterans' home. The participating employer of such | |
337 | + | retirant shall pay to the system the actuarially determined employer | |
338 | + | contribution based on the retirant's compensation and the statutorily | |
339 | + | prescribed employee contribution during any such period of employment; | |
340 | + | (ii) employed by a school district in a position as provided in K.S.A. | |
341 | + | 74-4937(3), (4) or (5), and amendments thereto; | |
440 | 342 | (iii) certified law enforcement officers employed by the law | |
441 | - | enforcement training center. Such law enforcement officers shall | |
442 | - | receive their benefits notwithstanding this subsection. The law | |
443 | - | enforcement training center shall pay to the system the actuarially | |
444 | - | determined employer contribution and the statutorily prescribed | |
445 | - | employee contribution based on the retirant's compensation during any | |
446 | - | such period of employment; | |
447 | - | (iv) members of the Kansas police and firemen's retirement | |
448 | - | system pursuant to K.S.A. 74-4951 et seq., and amendments thereto, | |
449 | - | members of the retirement system for judges pursuant to K.S.A. 20- | |
450 | - | 2601 et seq., and amendments thereto, or members of the state board of | |
451 | - | regents retirement plan pursuant to K.S.A. 74-4925 et seq., and | |
452 | - | amendments thereto; | |
343 | + | enforcement training center. Such law enforcement officers shall receive | |
344 | + | their benefits notwithstanding this subsection. The law enforcement | |
345 | + | training center shall pay to the system the actuarially determined employer | |
346 | + | contribution and the statutorily prescribed employee contribution based on | |
347 | + | the retirant's compensation during any such period of employment; | |
348 | + | (iv) members of the Kansas police and firemen's retirement system | |
349 | + | pursuant to K.S.A. 74-4951 et seq., and amendments thereto, members of | |
350 | + | the retirement system for judges pursuant to K.S.A. 20-2601 et seq., and | |
351 | + | amendments thereto, or members of the state board of regents retirement | |
352 | + | plan pursuant to K.S.A. 74-4925 et seq., and amendments thereto; | |
453 | 353 | (v) employed as substitute teachers without a contract or officers, | |
454 | - | employees or appointees of the legislature; HOUSE BILL No. 2711—page 8 | |
455 | - | (vi) a poll worker hired to work an election day for a county | |
456 | - | election officer responsible for conducting all official elections held in | |
457 | - | the county; | |
458 | - | (vii) employed by, or have accepted employment from, a | |
459 | - | participating employer prior to May 1, 2015. Any break in continuous | |
460 | - | employment by a retirant or move to a different position by a retirant | |
461 | - | during the effective period of this subsection shall be deemed new | |
462 | - | employment and shall subject the retirant to the provisions of this | |
463 | - | subsection. Commencing January 1, 2018, the participating employer | |
464 | - | of a retirant described in this subsection (7)(b)(vii) subparagraph who | |
465 | - | is employed in a covered position, as defined in K.S.A. 74-49,202, and | |
466 | - | amendments thereto, shall pay to the system the statutorily prescribed | |
467 | - | employer contribution rate on the first $25,000 $40,000 of such | |
468 | - | retirant's compensation in a calendar year and a 30% employer | |
469 | - | contribution on any compensation in excess of $25,000 $40,000 in a | |
470 | - | calendar year during any such period of employment. If a retirant is | |
471 | - | employed by more than one participating employer or performing | |
472 | - | duties in more than one position, contributions shall be made on | |
473 | - | compensation from all such employment for that calendar year. If a | |
474 | - | retirant is employed in a non-covered position, no employer | |
475 | - | contribution shall be paid to the system; | |
476 | - | (viii) state or local elected officials. A retirant shall not be | |
477 | - | employed in an elected office within 30 days of such retirant's | |
478 | - | retirement, except that if a retirant is filling a vacant elected office, no | |
479 | - | waiting period shall be required; or | |
354 | + | employees or appointees of the legislature; | |
355 | + | (vi) a poll worker hired to work an election day for a county election | |
356 | + | officer responsible for conducting all official elections held in the county; | |
357 | + | (vii) employed by, or have accepted employment from, a participating | |
358 | + | employer prior to May 1, 2015. Any break in continuous employment by a | |
359 | + | retirant or move to a different position by a retirant during the effective | |
360 | + | period of this subsection shall be deemed new employment and shall | |
361 | + | subject the retirant to the provisions of this subsection. Commencing | |
362 | + | January 1, 2018, the participating employer of a retirant described in this | |
363 | + | subsection (7)(b)(vii) subparagraph who is employed in a covered | |
364 | + | position, as defined in K.S.A. 74-49,202, and amendments thereto, shall | |
365 | + | pay to the system the statutorily prescribed employer contribution rate on | |
366 | + | the first $25,000 $50,000 of such retirant's compensation in a calendar year | |
367 | + | and a 30% employer contribution on any compensation in excess of | |
368 | + | $25,000 $50,000 in a calendar year during any such period of | |
369 | + | employment. If a retirant is employed by more than one participating | |
370 | + | employer or performing duties in more than one position, contributions | |
371 | + | shall be made on compensation from all such employment for that | |
372 | + | calendar year. If a retirant is employed in a non-covered position, no | |
373 | + | employer contribution shall be paid to the system; | |
374 | + | (viii) state or local elected officials. A retirant shall not be employed | |
375 | + | in an elected office within 30 days of such retirant's retirement, except that | |
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418 | + | 43 HB 2711 6 | |
419 | + | if a retirant is filling a vacant elected office, no waiting period shall be | |
420 | + | required; or | |
480 | 421 | (ix) employed by the Kansas academies of the United States | |
481 | - | department of defense STARBASE program; or | |
482 | - | (x) employed as a licensed professional nurse, licensed practical | |
483 | - | nurse or in a direct support position of an affiliated employer | |
484 | - | organized under K.S.A. 19-4001, and amendments thereto, or defined | |
485 | - | under K.S.A. 39-1803, and amendments thereto. | |
422 | + | department of defense STARBASE program. | |
486 | 423 | (c) The participating employer shall enroll all retirants, including | |
487 | - | retirants under subsection (7)(b)(i) (6)(b)(i), (ii), (iii), (vii) and (viii), | |
488 | - | and report to the system when compensation is paid to a retirant as | |
489 | - | provided in this subsection. Such report shall contain a certification by | |
490 | - | the appointing authority of the participating employer that any hired | |
491 | - | retirant has not been employed by the participating employer within 60 | |
492 | - | days of such retirant's retirement and that there was no prearranged | |
493 | - | agreement for employment between the participating employer and the | |
494 | - | hired retirant. Upon request of the executive director of the system, the | |
495 | - | participating employer shall provide such information as may be | |
496 | - | needed by the executive director to carry out the provisions of this | |
497 | - | subsection. No retirant shall make contributions to the system or | |
498 | - | receive credit for service while employed under the provisions of this | |
499 | - | subsection. | |
500 | - | (d) A participating employer may employ a retirant without regard | |
501 | - | to the compensation limitation in this subsection for a period of one | |
502 | - | calendar year or one school year, as the case may be, if the following | |
503 | - | requirements are met: | |
504 | - | (i) The employer certifies to the board that the position being | |
505 | - | filled has been vacated due to an unexpected emergency or the | |
506 | - | employer has been unsuccessful in filling the position; | |
424 | + | retirants under subsection (7)(b)(i) (6)(b)(i), (ii), (iii), (vii) and (viii), and | |
425 | + | report to the system when compensation is paid to a retirant as provided in | |
426 | + | this subsection. Such report shall contain a certification by the appointing | |
427 | + | authority of the participating employer that any hired retirant has not been | |
428 | + | employed by the participating employer within 60 days of such retirant's | |
429 | + | retirement and that there was no prearranged agreement for employment | |
430 | + | between the participating employer and the hired retirant. Upon request of | |
431 | + | the executive director of the system, the participating employer shall | |
432 | + | provide such information as may be needed by the executive director to | |
433 | + | carry out the provisions of this subsection. No retirant shall make | |
434 | + | contributions to the system or receive credit for service while employed | |
435 | + | under the provisions of this subsection. | |
436 | + | (d) A participating employer may employ a retirant without regard to | |
437 | + | the compensation limitation in this subsection for a period of one calendar | |
438 | + | year or one school year, as the case may be, if the following requirements | |
439 | + | are met: | |
440 | + | (i) The employer certifies to the board that the position being filled | |
441 | + | has been vacated due to an unexpected emergency or the employer has | |
442 | + | been unsuccessful in filling the position; | |
507 | 443 | (ii) the employer pays to the system a 30% employer contribution | |
508 | 444 | based on the retirant's compensation during any such period of | |
509 | 445 | employment; and | |
510 | 446 | (iii) the employer maintains documentation of its efforts to fill the | |
511 | - | position with a non-retirant and provides such documentation to the | |
512 | - | ||
513 | - | ||
447 | + | position with a non-retirant and provides such documentation to the joint | |
448 | + | committee on pensions, investments and benefits upon request of the | |
449 | + | committee. | |
514 | 450 | The provisions of this paragraph shall expire on January 1, 2018. | |
515 | 451 | (e) An employer may submit a written assurance protocol to the | |
516 | - | system to extend the exception provided for in subsection (7)(d) by | |
517 | - | one-year increments for a total extension not to exceed three years. A | |
518 | - | written assurance protocol shall be submitted to the system for each HOUSE BILL No. 2711—page 9 | |
519 | - | one-year increment extension. If a school district submits a written | |
520 | - | assurance protocol, such written assurance protocol shall be signed by | |
521 | - | the superintendent and the board president of such school district. If a | |
522 | - | municipality, as defined in K.S.A. 75-1117, and amendments thereto, | |
523 | - | other than a school district, submits a written assurance protocol, such | |
524 | - | written assurance protocol shall be signed by the governing body or | |
525 | - | such governing body's designee for such municipality. Such written | |
526 | - | assurance protocol shall state that the position was advertised on | |
527 | - | multiple platforms for a minimum of 30 calendar days and that at least | |
528 | - | one of the following conditions occurred: | |
452 | + | system to extend the exception provided for in subsection (7)(d) by one- | |
453 | + | year increments for a total extension not to exceed three years. A written | |
454 | + | assurance protocol shall be submitted to the system for each one-year | |
455 | + | increment extension. If a school district submits a written assurance | |
456 | + | protocol, such written assurance protocol shall be signed by the | |
457 | + | superintendent and the board president of such school district. If a | |
458 | + | municipality, as defined in K.S.A. 75-1117, and amendments thereto, other | |
459 | + | than a school district, submits a written assurance protocol, such written | |
460 | + | assurance protocol shall be signed by the governing body or such | |
461 | + | governing body's designee for such municipality. Such written assurance | |
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505 | + | protocol shall state that the position was advertised on multiple platforms | |
506 | + | for a minimum of 30 calendar days and that at least one of the following | |
507 | + | conditions occurred: | |
529 | 508 | (i) No applications were submitted for the position; | |
530 | 509 | (ii) if applications were submitted, none of the applicants met the | |
531 | 510 | reference screening criteria of the employer; or | |
532 | - | (iii) if applications were submitted, none of the applicants | |
533 | - | ||
534 | - | ||
511 | + | (iii) if applications were submitted, none of the applicants possessed | |
512 | + | the appropriate licensure, certification or other necessary credentials for | |
513 | + | the position. | |
535 | 514 | The provisions of this paragraph shall expire on January 1, 2018. | |
536 | - | (f) Retirants who are independent contractors or employees of | |
537 | - | ||
538 | - | ||
515 | + | (f) Retirants who are independent contractors or employees of third- | |
516 | + | party entities who contract with a participating employer, shall not be | |
517 | + | subject to the compensation limitation or employer contribution | |
539 | 518 | requirements in this subsection or the requirements of subsection (7)(c) | |
540 | - | paragraph (c) regarding enrollment and reporting to the system, so | |
541 | - | long as all of the following apply: | |
542 | - | (A) The contractual relationship was not created to allow the | |
543 | - | retirant to continue employment with the participating employer after | |
544 | - | retirement in a position similar to the one such retirant held prior to | |
545 | - | retirement; | |
546 | - | (B) the activities performed by the independent contractor or | |
547 | - | third-party entity are not normally performed exclusively by employees | |
548 | - | of that participating employer; and | |
549 | - | (C) the retirant meets the classification of independent contractor | |
550 | - | as provided in K.S.A. 44-768, and amendments thereto, or activities | |
551 | - | performed by the third-party entity that employs the retirant are | |
552 | - | performed on a limited-term basis and the third-party entity is not a | |
553 | - | participating employer in the system. | |
519 | + | paragraph (c) regarding enrollment and reporting to the system, so long as | |
520 | + | all of the following apply: | |
521 | + | (A) The contractual relationship was not created to allow the retirant | |
522 | + | to continue employment with the participating employer after retirement in | |
523 | + | a position similar to the one such retirant held prior to retirement; | |
524 | + | (B) the activities performed by the independent contractor or third- | |
525 | + | party entity are not normally performed exclusively by employees of that | |
526 | + | participating employer; and | |
527 | + | (C) the retirant meets the classification of independent contractor as | |
528 | + | provided in K.S.A. 44-768, and amendments thereto, or activities | |
529 | + | performed by the third-party entity that employs the retirant are performed | |
530 | + | on a limited-term basis and the third-party entity is not a participating | |
531 | + | employer in the system. | |
554 | 532 | (g)(e) Nothing in this subsection shall be construed to create any | |
555 | 533 | right, or to authorize the creation of any right, which is not subject to | |
556 | 534 | amendment or nullification by act of the legislature. | |
557 | 535 | (8)(7) (a) Except as provided in subsection (8)(b) paragraph (b), if | |
558 | 536 | determined by the retirement system that a retirant entered into a | |
559 | 537 | prearranged agreement for employment with a participating employer | |
560 | - | prior to such retirant's retirement and prior to the end of the subsequent | |
561 | - | 60-day waiting period, or the 180-day waiting period under subsection | |
562 | - | (10) (9), the monthly retirement benefit of such retirant shall be | |
563 | - | suspended during the period that begins on the month in which the | |
564 | - | retirant is re-employed and ends six months after the retirant's | |
565 | - | termination of such employment. The retirant shall repay to the | |
566 | - | retirement system all monthly retirement benefits paid to the retirant by | |
567 | - | the retirement system that the retirant received after such employment | |
568 | - | began. The participating employer which hired such retirant shall be | |
569 | - | required to pay to the system any fees, fines, penalties or any other cost | |
570 | - | imposed by the internal revenue service and indemnify the system for | |
571 | - | any cost incurred by the system to defend any action brought by the | |
572 | - | internal revenue service based on in-service distributions which are a | |
573 | - | result of any determined prearranged agreement and for any cost | |
574 | - | incurred by the system to collect any monthly retirement benefit | |
575 | - | required to be repaid by such retirant pursuant to this subsection. | |
538 | + | prior to such retirant's retirement and prior to the end of the subsequent 60- | |
539 | + | day waiting period, or the 180-day waiting period under subsection (10) | |
540 | + | (9), the monthly retirement benefit of such retirant shall be suspended | |
541 | + | during the period that begins on the month in which the retirant is re- | |
542 | + | employed and ends six months after the retirant's termination of such | |
543 | + | employment. The retirant shall repay to the retirement system all monthly | |
544 | + | retirement benefits paid to the retirant by the retirement system that the | |
545 | + | retirant received after such employment began. The participating employer | |
546 | + | which hired such retirant shall be required to pay to the system any fees, | |
547 | + | fines, penalties or any other cost imposed by the internal revenue service | |
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591 | + | and indemnify the system for any cost incurred by the system to defend | |
592 | + | any action brought by the internal revenue service based on in-service | |
593 | + | distributions which are a result of any determined prearranged agreement | |
594 | + | and for any cost incurred by the system to collect any monthly retirement | |
595 | + | benefit required to be repaid by such retirant pursuant to this subsection. | |
576 | 596 | (b) For members who retired on and after July 1, 2016, and on or | |
577 | - | before July 1, 2019, if determined by the retirement system that a | |
578 | - | retirant entered into a prearranged agreement for employment with a | |
579 | - | participating employer prior to such retirant's retirement date and the | |
580 | - | subsequent 60-day waiting period, or the 180-day waiting period under | |
581 | - | subsection (10) (9), and upon being notified of the violation, the retirant | |
582 | - | terminated such employment, the provisions of subsection paragraph HOUSE BILL No. 2711—page 10 | |
583 | - | (a) shall not apply. If any retirant had benefits suspended prior to July | |
584 | - | 1, 2019, such benefits shall be reimbursed by the retirement system, if | |
585 | - | the retirant terminated such prearranged employment in accordance | |
586 | - | with the provisions of this act. On and after July 1, 2019, the executive | |
587 | - | director may waive such penalties under this subsection if it is | |
588 | - | determined by the retirement system that any of the following | |
589 | - | conditions were satisfied: | |
597 | + | before July 1, 2019, if determined by the retirement system that a retirant | |
598 | + | entered into a prearranged agreement for employment with a participating | |
599 | + | employer prior to such retirant's retirement date and the subsequent 60-day | |
600 | + | waiting period, or the 180-day waiting period under subsection (10) (9), | |
601 | + | and upon being notified of the violation, the retirant terminated such | |
602 | + | employment, the provisions of subsection paragraph (a) shall not apply. If | |
603 | + | any retirant had benefits suspended prior to July 1, 2019, such benefits | |
604 | + | shall be reimbursed by the retirement system, if the retirant terminated | |
605 | + | such prearranged employment in accordance with the provisions of this | |
606 | + | act. On and after July 1, 2019, the executive director may waive such | |
607 | + | penalties under this subsection if it is determined by the retirement system | |
608 | + | that any of the following conditions were satisfied: | |
590 | 609 | (i) The retirant's total length of reemployment was less than 21 | |
591 | 610 | calendar days; | |
592 | 611 | (ii) the retirant's total compensation during the total length of | |
593 | 612 | reemployment was less than 10% of the amount of such retirant's | |
594 | - | retirement benefit that would be suspended pursuant to this subsection; | |
595 | - | or | |
613 | + | retirement benefit that would be suspended pursuant to this subsection; or | |
596 | 614 | (iii) other facts and circumstances indicated that the retirant would | |
597 | - | not have been reemployed but for an error on the part of the | |
598 | - | ||
599 | - | ||
600 | - | ||
615 | + | not have been reemployed but for an error on the part of the participating | |
616 | + | employer or the retirement system in verifying the retirement status of | |
617 | + | such retirant and such retirant immediately terminated employment upon | |
618 | + | being notified of the violation. | |
601 | 619 | (c) On or before the first day of each regular session of the | |
602 | - | legislature, beginning with the 2020 regular session, the executive | |
603 | - | ||
604 | - | ||
605 | - | ||
606 | - | ||
607 | - | ||
608 | - | ||
620 | + | legislature, beginning with the 2020 regular session, the executive director | |
621 | + | shall submit an annual report on the number of waivers granted pursuant to | |
622 | + | subsection (8)(b) paragraph (b) in the prior calendar year to the joint | |
623 | + | committee on pensions, investments and benefits, the house of | |
624 | + | representatives standing committee on financial institutions and pensions | |
625 | + | and the senate standing committee on financial institutions and insurance, | |
626 | + | or the successors of such committees. | |
609 | 627 | (9)(8) For the purposes of this section a prearranged agreement for | |
610 | - | employment may be determined by whether the facts and | |
611 | - | circumstances of the situation indicate that the employer and employee | |
612 | - | reasonably anticipated that further services would be performed after | |
613 | - | the employee's retirement. | |
614 | - | (10)(9) (a) Notwithstanding the provisions of subsection (5) or (7) | |
615 | - | (6) to the contrary, commencing January 1, 2018, any retirant who is | |
616 | - | retired more than 60 days, if such retirant's age on the date of | |
617 | - | retirement is 62 or older, or is retired more than 180 days, if such | |
618 | - | retirant's age on the date of retirement is less than 62, and who is | |
619 | - | subsequently hired without any prearranged agreement with the | |
620 | - | participating employer in a covered position, as defined in K.S.A. 74- | |
621 | - | 49,202, and amendments thereto, or an independent contractor or a | |
622 | - | third-party entity who contracts service to fill such covered position | |
623 | - | shall not be subject to an earnings limitation that when met or exceeded | |
624 | - | requires that the retirant not receive a retirement benefit for any month | |
625 | - | for which such retirant serves in such covered position. The | |
626 | - | participating employer of such retirant shall pay to the system the | |
627 | - | statutorily prescribed employer contribution rate on the first $25,000 | |
628 | - | $40,000 of such retirant's compensation in a calendar year and a 30% | |
629 | - | employer contribution on any compensation in excess of $25,000 | |
630 | - | $40,000 in a calendar year during any such period of employment. If a | |
628 | + | employment may be determined by whether the facts and circumstances of | |
629 | + | the situation indicate that the employer and employee reasonably | |
630 | + | anticipated that further services would be performed after the employee's | |
631 | + | retirement. | |
632 | + | (10)(9) (a) Notwithstanding the provisions of subsection (5) or (7) (6) | |
633 | + | to the contrary, commencing January 1, 2018, any retirant who is retired | |
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677 | + | more than 60 days, if such retirant's age on the date of retirement is 62 or | |
678 | + | older, or is retired more than 180 days, if such retirant's age on the date of | |
679 | + | retirement is less than 62, and who is subsequently hired without any | |
680 | + | prearranged agreement with the participating employer in a covered | |
681 | + | position, as defined in K.S.A. 74-49,202, and amendments thereto, or an | |
682 | + | independent contractor or a third-party entity who contracts service to fill | |
683 | + | such covered position shall not be subject to an earnings limitation that | |
684 | + | when met or exceeded requires that the retirant not receive a retirement | |
685 | + | benefit for any month for which such retirant serves in such covered | |
686 | + | position. The participating employer of such retirant shall pay to the | |
687 | + | system the statutorily prescribed employer contribution rate on the first | |
688 | + | $25,000 $50,000 of such retirant's compensation in a calendar year and a | |
689 | + | 30% employer contribution on any compensation in excess of $25,000 | |
690 | + | $50,000 in a calendar year during any such period of employment. If a | |
631 | 691 | retirant is employed by more than one participating employer or | |
632 | - | performing duties in more than one position, contributions shall be | |
633 | - | made on compensation from all such employment for that calendar | |
634 | - | year. | |
635 | - | (b) Notwithstanding the provisions of subsection (5) or (7) (6) to | |
636 | - | the contrary, commencing January 1, 2018, any retirant who is retired | |
637 | - | more than 60 days, if such retirant's age on the date of retirement is 62 | |
638 | - | or older, or is retired more than 180 days, if such retirant's age on the | |
639 | - | date of retirement is less than 62, and who is subsequently hired | |
640 | - | without any prearranged agreement with the participating employer in a | |
641 | - | non-covered position, or an independent contractor or a third-party | |
642 | - | entity who contracts service to fill such non-covered position, shall not | |
643 | - | be subject to an earnings limitation that when met or exceeded requires | |
644 | - | that the retirant not receive a retirement benefit for any month for | |
645 | - | which such retirant serves in such non-covered position. No employer | |
646 | - | contribution shall be paid to the system on compensation paid to a HOUSE BILL No. 2711—page 11 | |
647 | - | retirant hired in a non-covered position. | |
692 | + | performing duties in more than one position, contributions shall be made | |
693 | + | on compensation from all such employment for that calendar year. | |
694 | + | (b) Notwithstanding the provisions of subsection (5) or (7) (6) to the | |
695 | + | contrary, commencing January 1, 2018, any retirant who is retired more | |
696 | + | than 60 days, if such retirant's age on the date of retirement is 62 or older, | |
697 | + | or is retired more than 180 days, if such retirant's age on the date of | |
698 | + | retirement is less than 62, and who is subsequently hired without any | |
699 | + | prearranged agreement with the participating employer in a non-covered | |
700 | + | position, or an independent contractor or a third-party entity who contracts | |
701 | + | service to fill such non-covered position, shall not be subject to an | |
702 | + | earnings limitation that when met or exceeded requires that the retirant not | |
703 | + | receive a retirement benefit for any month for which such retirant serves in | |
704 | + | such non-covered position. No employer contribution shall be paid to the | |
705 | + | system on compensation paid to a retirant hired in a non-covered position. | |
648 | 706 | (c) The participating employer shall enroll all retirants, including | |
649 | - | retirants under subsection (7)(b)(i) (6)(b)(i), (ii), (iii), (vii) and (viii), | |
650 | - | and report to the system when compensation is paid to a retirant as | |
651 | - | provided in this subsection. Such report shall contain a certification by | |
652 | - | the appointing authority of the participating employer that any hired | |
653 | - | retirant has not been employed by the participating employer within 60 | |
654 | - | days of such retirant's retirement in the case of a retirant whose age on | |
655 | - | the date of retirement is 62 or older, or within 180 days of such | |
656 | - | retirant's retirement in the case of a retirant whose age on the date of | |
657 | - | retirement is less than 62, and that there was no prearranged agreement | |
658 | - | for employment between the participating employer and the hired | |
659 | - | retirant. Upon request of the executive director of the system, the | |
660 | - | participating employer shall provide such information as may be | |
661 | - | needed by the executive director to carry out the provisions of this | |
662 | - | subsection. No retirant shall make contributions to the system or | |
663 | - | receive credit for service while employed under the provisions of this | |
664 | - | subsection. | |
665 | - | (d) The provisions of this subsection relating to an earnings | |
666 | - | limitation and employer contributions shall not apply to any retirant | |
667 | - | described in subsection (7)(b) (6)(b) or to retirants who are independent | |
668 | - | contractors or employees of third-party entities who contract with a | |
669 | - | participating employer as described in subsection (7)(f) (6)(d), except | |
670 | - | as specifically provided in this subsection. | |
671 | - | (e) Nothing in this subsection shall be construed to create any | |
672 | - | right, or to authorize the creation of any right that is not subject to | |
673 | - | amendment or nullification by act of the legislature. | |
674 | - | Sec. 10. K.S.A. 2023 Supp. 74-4921 is hereby amended to read as | |
675 | - | follows: 74-4921. (1) There is hereby created in the state treasury the | |
676 | - | Kansas public employees retirement fund. All employee and employer | |
677 | - | contributions shall be deposited in the state treasury to be credited to | |
678 | - | the Kansas public employees retirement fund. The fund is a trust fund | |
679 | - | and shall be used solely for the exclusive purpose of providing benefits | |
680 | - | to members and member beneficiaries and defraying reasonable | |
681 | - | expenses of administering the fund. Investment income of the fund | |
682 | - | shall be added or credited to the fund as provided by law. All benefits | |
683 | - | payable under the system, refund of contributions and overpayments, | |
684 | - | purchases or investments under the law and expenses in connection | |
685 | - | with the system unless otherwise provided by law shall be paid from | |
686 | - | the fund. The director of accounts and reports is authorized to draw | |
687 | - | warrants on the state treasurer and against such fund upon the filing in | |
688 | - | the director's office of proper vouchers executed by the chairperson or | |
689 | - | the executive director of the board. As an alternative, payments from | |
690 | - | the fund may be made by credits to the accounts of recipients of | |
691 | - | payments in banks, savings and loan associations and credit unions. A | |
692 | - | payment shall be so made only upon the written authorization and | |
693 | - | direction of the recipient of payment and upon receipt of such | |
694 | - | authorization such payments shall be made in accordance therewith. | |
695 | - | Orders for payment of such claims may be contained on: | |
696 | - | (a) A letter, memorandum, telegram, computer printout or similar | |
697 | - | writing; or | |
698 | - | (b) any form of communication, other than voice, which is | |
699 | - | registered upon magnetic tape, disc or any other medium designed to | |
700 | - | capture and contain in durable form conventional signals used for the | |
701 | - | electronic communication of messages. | |
702 | - | (2) The board shall have the responsibility for the management of | |
703 | - | the fund and shall discharge the board's duties with respect to the fund | |
704 | - | solely in the interests of the members and beneficiaries of the system | |
705 | - | for the exclusive purpose of providing benefits to members and such | |
706 | - | member's beneficiaries and defraying reasonable expenses of | |
707 | - | administering the fund and shall invest and reinvest moneys in the fund | |
708 | - | and acquire, retain, manage, including the exercise of any voting rights | |
709 | - | and disposal of investments of the fund within the limitations and | |
710 | - | according to the powers, duties and purposes as prescribed by this HOUSE BILL No. 2711—page 12 | |
711 | - | section. | |
712 | - | (3) Moneys in the fund shall be invested and reinvested to achieve | |
713 | - | the investment objective which is preservation of the fund to provide | |
714 | - | benefits to members and member beneficiaries, as provided by law and | |
715 | - | accordingly providing that the moneys are as productive as possible, | |
716 | - | subject to the standards set forth in this act. No moneys in the fund | |
717 | - | shall be invested or reinvested if any investment objective is for | |
718 | - | economic development or social purposes or objectives. | |
719 | - | (4) In investing and reinvesting moneys in the fund and in | |
720 | - | acquiring, retaining, managing and disposing of investments of the | |
721 | - | fund, the board shall exercise the judgment, care, skill, prudence and | |
722 | - | diligence under the circumstances then prevailing, which persons of | |
723 | - | prudence, discretion and intelligence acting in a like capacity and | |
724 | - | familiar with such matters would use in the conduct of an enterprise of | |
725 | - | like character and with like aims by diversifying the investments of the | |
726 | - | fund so as to minimize the risk of large losses, unless under the | |
727 | - | circumstances it is clearly prudent not to do so, and not in regard to | |
728 | - | speculation but in regard to the permanent disposition of similar funds, | |
729 | - | considering the probable income as well as the probable safety of their | |
730 | - | capital. | |
731 | - | (5) Notwithstanding subsection (4): | |
732 | - | (a) Total investments in common stock may be made in the | |
733 | - | amount of up to 60% of the total book value of the fund; | |
734 | - | (b) the board may invest or reinvest moneys of the fund in | |
735 | - | alternative investments if the following conditions are satisfied: | |
736 | - | (i) The total of the annual net commitment to alternative | |
737 | - | investments does not exceed 5% of the total market value of investment | |
738 | - | assets of the fund as measured from the end of the preceding calendar | |
739 | - | year; | |
740 | - | (ii) if in addition to the system, there are at least two other | |
741 | - | qualified institutional buyers, as defined by section (a)(1)(i) of rule | |
742 | - | 144A, securities act of 1933; | |
743 | - | (iii) the system's share in any individual alternative investment is | |
744 | - | limited to an investment representing not more than 20% of any such | |
745 | - | individual alternative investment; | |
746 | - | (iv) the system has received a favorable and appropriate | |
747 | - | recommendation from a qualified, independent expert in investment | |
748 | - | management or analysis in that particular type of alternative | |
749 | - | investment; | |
750 | - | (v) the alternative investment is consistent with the system's | |
751 | - | investment policies and objectives as provided in subsection (6); | |
752 | - | (vi) the individual alternative investment does not exceed more | |
753 | - | than 2.5% of the total alternative investments made under this | |
754 | - | subsection. If the alternative investment is made pursuant to | |
755 | - | participation by the system in a multi-investor pool, the 2.5% limitation | |
756 | - | contained in this subsection is applied to the underlying individual | |
757 | - | assets of such pool and not to investment in the pool itself. The total of | |
758 | - | such alternative investments made pursuant to participation by the | |
759 | - | system in any one individual multi-investor pool shall not exceed more | |
760 | - | than 20% of the total of alternative investments made by the system | |
761 | - | pursuant to this subsection. Nothing in this subsection requires the | |
762 | - | board to liquidate or sell the system's holdings in any alternative | |
763 | - | investments made pursuant to participation by the system in any one | |
764 | - | individual multi-investor pool held by the system on the effective date | |
765 | - | of this act, unless such liquidation or sale would be in the best interest | |
766 | - | of the members and beneficiaries of the system and be prudent under | |
767 | - | the standards contained in this section. The 20% limitation contained in | |
768 | - | this subsection shall not have been violated if the total of such | |
769 | - | investment in any one individual multi-investor pool exceeds 20% of | |
770 | - | the total alternative investments of the fund as a result of market forces | |
771 | - | acting to increase the value of such a multi-investor pool relative to the | |
772 | - | rest of the system's alternative investments; however, the board shall | |
773 | - | not invest or reinvest any moneys of the fund in any such individual | |
774 | - | multi-investor pool until the value of such individual multi-investor HOUSE BILL No. 2711—page 13 | |
775 | - | pool is less than 20% of the total alternative investments of the fund; | |
776 | - | (vii) the board has received and considered the investment | |
777 | - | manager's due diligence findings submitted to the board as required by | |
778 | - | subsection (6); | |
779 | - | (viii) prior to the time the alternative investment is made, the | |
780 | - | system has in place procedures and systems to ensure that the | |
781 | - | investment is properly monitored and investment performance is | |
782 | - | accurately measured; and | |
783 | - | (ix) the total of alternative investments does not exceed 15% 25% | |
784 | - | of the total investment assets of the fund. The 15% 25% limitation | |
785 | - | contained in this subsection shall not have been violated if the total of | |
786 | - | such alternative investments exceeds 15% 25% of the total investment | |
787 | - | assets of the fund, based on the fund total market value, as a result of | |
788 | - | market forces acting to increase the value of such alternative | |
789 | - | investments relative to the rest of the system's investments. However, | |
790 | - | the board shall not invest or reinvest any moneys of the fund in | |
791 | - | alternative investments until the total value of such alternative | |
792 | - | investments is less than 15% 25% of the total investment assets of the | |
793 | - | fund based on the market value. If the total value of the alternative | |
794 | - | investments exceeds 15% 25% of the total investment assets of the | |
795 | - | fund, the board shall not be required to liquidate or sell the system's | |
796 | - | holdings in any alternative investment held by the system, unless such | |
797 | - | liquidation or sale would be in the best interest of the members and | |
798 | - | beneficiaries of the system and is prudent under the standards contained | |
799 | - | in this section; | |
800 | - | (c) for purposes of this section, "alternative investment" includes a | |
801 | - | broad group of investments that are not one of the traditional asset | |
802 | - | types of public equities, fixed income, cash or real estate. Alternative | |
803 | - | investments are generally made through limited partnership or similar | |
804 | - | structures, are not regularly traded on nationally recognized exchanges | |
805 | - | and thus are relatively illiquid, and exhibit lower correlations with more | |
806 | - | liquid asset types such as stocks and bonds. Alternative investments | |
807 | - | generally include, but are not limited to, private equity, private credit, | |
808 | - | hedge funds, infrastructure, commodities and other investments that | |
809 | - | have the characteristics described in this paragraph; and | |
810 | - | (d) except as otherwise provided, the board may invest or reinvest | |
811 | - | moneys of the fund in real estate investments if the following | |
812 | - | conditions are satisfied: | |
813 | - | (i) The system has received a favorable and appropriate | |
814 | - | recommendation from a qualified, independent expert in investment | |
815 | - | management or analysis in that particular type of real estate investment; | |
816 | - | (ii) the real estate investment is consistent with the system's | |
817 | - | investment policies and objectives as provided in subsection (6); and | |
818 | - | (iii) the system has received and considered the investment | |
819 | - | manager's due diligence findings. | |
820 | - | (6) (a) Subject to the objective set forth in subsection (3) and the | |
821 | - | standards set forth in subsections (4) and (5) the board shall formulate | |
822 | - | policies and objectives for the investment and reinvestment of moneys | |
823 | - | in the fund and the acquisition, retention, management and disposition | |
824 | - | of investments of the fund. Such policies and objectives shall include: | |
825 | - | (i) Specific asset allocation standards and objectives; | |
826 | - | (ii) establishment of criteria for evaluating the risk versus the | |
827 | - | potential return on a particular investment; | |
828 | - | (iii) a requirement that all investment managers submit such | |
829 | - | manager's due diligence findings on each investment to the board or | |
830 | - | investment advisory committee for approval or rejection prior to | |
831 | - | making any alternative investment; | |
832 | - | (iv) a requirement that all investment managers shall immediately | |
833 | - | report all instances of default on investments to the board and provide | |
834 | - | the board with recommendations and options, including, but not limited | |
835 | - | to, curing the default or withdrawal from the investment; and | |
836 | - | (v) establishment of criteria that would be used as a guideline for | |
837 | - | determining when no additional add-on investments or reinvestments | |
838 | - | would be made and when the investment would be liquidated. HOUSE BILL No. 2711—page 14 | |
839 | - | (b) The board shall review such policies and objectives, make | |
840 | - | changes considered necessary or desirable and readopt such policies | |
841 | - | and objectives on an annual basis. | |
842 | - | (7) The board may enter into contracts with one or more persons | |
843 | - | whom the board determines to be qualified, whereby the persons | |
844 | - | undertake to perform the functions specified in subsection (2) to the | |
845 | - | extent provided in the contract. Performance of functions under | |
846 | - | contract so entered into shall be paid pursuant to rates fixed by the | |
847 | - | board subject to provisions of appropriation acts and shall be based on | |
848 | - | specific contractual fee arrangements. The system shall not pay or | |
849 | - | reimburse any expenses of persons contracted with pursuant to this | |
850 | - | subsection, except that after approval of the board, the system may pay | |
851 | - | approved investment related expenses subject to provisions of | |
852 | - | appropriation acts. The board shall require that a person contracted with | |
853 | - | to obtain commercial insurance which provides for errors and | |
854 | - | omissions coverage for such person in an amount to be specified by the | |
855 | - | board, provided that such coverage shall be at least the greater of | |
856 | - | $500,000 or 1% of the funds entrusted to such person up to a maximum | |
857 | - | of $10,000,000. The board shall require a person contracted with to | |
858 | - | give a fidelity bond in a penal sum as may be fixed by law or, if not so | |
859 | - | fixed, as may be fixed by the board, with corporate surety authorized to | |
860 | - | do business in this state. Such persons contracted with the board | |
861 | - | pursuant to this subsection and any persons contracted with such | |
862 | - | persons to perform the functions specified in subsection (2) shall be | |
863 | - | deemed to be agents of the board and the system in the performance of | |
864 | - | contractual obligations. | |
865 | - | (8) (a) In the acquisition or disposition of securities, the board | |
866 | - | may rely on the written legal opinion of a reputable bond attorney or | |
867 | - | attorneys, the written opinion of the attorney of the investment | |
868 | - | counselor or managers, or the written opinion of the attorney general | |
869 | - | certifying the legality of the securities. | |
870 | - | (b) The board shall employ or retain qualified investment counsel | |
871 | - | or counselors or may negotiate with a trust company to assist and | |
872 | - | advise in the judicious investment of funds as herein provided. | |
873 | - | (9) (a) Except as provided in subsection (7) and this subsection, | |
874 | - | the custody of money and securities of the fund shall remain in the | |
875 | - | custody of the state treasurer, except that the board may arrange for the | |
876 | - | custody of such money and securities as it considers advisable with one | |
877 | - | or more member banks or trust companies of the federal reserve system | |
878 | - | or with one or more banks in the state of Kansas, or both, to be held in | |
879 | - | safekeeping by the banks or trust companies for the collection of the | |
880 | - | principal and interest or other income or of the proceeds of sale. The | |
881 | - | services provided by the banks or trust companies shall be paid | |
882 | - | pursuant to rates fixed by the board subject to provisions of | |
883 | - | appropriation acts. | |
884 | - | (b) The state treasurer and the board shall collect the principal and | |
885 | - | interest or other income of investments or the proceeds of sale of | |
886 | - | securities in the custody of the state treasurer and pay same when so | |
887 | - | collected into the fund. | |
888 | - | (c) The principal and interest or other income or the proceeds of | |
889 | - | sale of securities as provided in this subsection shall be reported to the | |
890 | - | state treasurer and the board and credited to the fund. | |
891 | - | (10) The board shall with the advice of the director of accounts | |
892 | - | and reports establish the requirements and procedure for reporting any | |
893 | - | and all activity relating to investment functions provided for in this act | |
894 | - | in order to prepare a record monthly of the investment income and | |
895 | - | changes made during the preceding month. The record will reflect a | |
896 | - | detailed summary of investment, reinvestment, purchase, sale and | |
897 | - | exchange transactions and such other information as the board may | |
898 | - | consider advisable to reflect a true accounting of the investment | |
899 | - | activity of the fund. | |
900 | - | (11) The board shall provide for an examination of the investment | |
901 | - | program annually. The examination shall include an evaluation of | |
902 | - | current investment policies and practices and of specific investments of HOUSE BILL No. 2711—page 15 | |
903 | - | the fund in relation to the objective set forth in subsection (3), the | |
904 | - | standard set forth in subsection (4) and other criteria as may be | |
905 | - | appropriate, and recommendations relating to the fund investment | |
906 | - | policies and practices and to specific investments of the fund as are | |
907 | - | considered necessary or desirable. The board shall include in its annual | |
908 | - | report to the governor as provided in K.S.A. 74-4907, and amendments | |
909 | - | thereto, a report or a summary thereof covering the investments of the | |
910 | - | fund. | |
911 | - | (12) Any internal assessment or examination of alternative | |
912 | - | investments of the system performed by any person or entity employed | |
913 | - | or retained by the board which evaluates or monitors the performance | |
914 | - | of alternative investments shall be reported to the legislative post | |
915 | - | auditor so that such report may be reviewed in accordance with the | |
916 | - | annual financial-compliance audits conducted pursuant to K.S.A. 74- | |
917 | - | 49,136, and amendments thereto. | |
918 | - | Sec. 11. K.S.A. 74-4937 is hereby amended to read as follows: 74- | |
919 | - | 4937. (1) The normal retirement date of a member of the system who is | |
920 | - | in school employment and who is subject to K.S.A. 74-4940, and | |
921 | - | amendments thereto, shall be the first day of the month coinciding with | |
922 | - | or following termination of employment not followed by employment | |
923 | - | with any participating employer within 60 days, or 180 days as | |
924 | - | provided in K.S.A. 74-4914(10)(9), and amendments thereto, and | |
925 | - | without any prearranged agreement for employment with any | |
926 | - | participating employer, and the attainment of age 65 or, commencing | |
927 | - | July 1, 1986, age 65 or age 60 with the completion of 35 years of | |
928 | - | credited service or at any age with the completion of 40 years of | |
929 | - | credited service, or commencing July 1, 1993, any alternative normal | |
930 | - | retirement date already prescribed by law or age 62 with the completion | |
931 | - | of 10 years of credited service or the first day of the month coinciding | |
932 | - | with or following the date that the total of the number of years of | |
933 | - | credited service and the number of years of attained age of the member | |
934 | - | is equal to or more than 85. Each member upon giving prior notice to | |
935 | - | the appointing authority and the retirement system may retire on the | |
936 | - | normal retirement date or the first day of any month thereafter. Such | |
937 | - | member's application for retirement shall contain a certification by the | |
938 | - | member that the member will not be employed with any participating | |
939 | - | employer within 60 days, or 180 days as provided in K.S.A. 74- | |
940 | - | 4914(10)(9), and amendments thereto, of retirement and the member | |
941 | - | has not entered into a prearranged agreement for employment with any | |
942 | - | participating employer. | |
943 | - | (2) Any member who is in school employment and who is subject | |
944 | - | to K.S.A. 74-4940, and amendments thereto, may retire before such | |
945 | - | member's normal retirement date on the first day of the month | |
946 | - | coinciding with or following termination of employment not followed | |
947 | - | by employment with any participating employer within 60 days, or 180 | |
948 | - | days as provided in K.S.A. 74-4914(10)(9), and amendments thereto, | |
949 | - | and the attainment of age 55 with the completion of 10 years of | |
950 | - | credited service, upon the filing with the office of the retirement system | |
951 | - | of an application for retirement in such form and manner as the board | |
952 | - | shall prescribe. The member's application for retirement shall contain a | |
707 | + | retirants under subsection (7)(b)(i) (6)(b)(i), (ii), (iii), (vii) and (viii), and | |
708 | + | report to the system when compensation is paid to a retirant as provided in | |
709 | + | this subsection. Such report shall contain a certification by the appointing | |
710 | + | authority of the participating employer that any hired retirant has not been | |
711 | + | employed by the participating employer within 60 days of such retirant's | |
712 | + | retirement in the case of a retirant whose age on the date of retirement is | |
713 | + | 62 or older, or within 180 days of such retirant's retirement in the case of a | |
714 | + | retirant whose age on the date of retirement is less than 62, and that there | |
715 | + | was no prearranged agreement for employment between the participating | |
716 | + | employer and the hired retirant. Upon request of the executive director of | |
717 | + | the system, the participating employer shall provide such information as | |
718 | + | may be needed by the executive director to carry out the provisions of this | |
719 | + | subsection. No retirant shall make contributions to the system or receive | |
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763 | + | credit for service while employed under the provisions of this subsection. | |
764 | + | (d) The provisions of this subsection relating to an earnings limitation | |
765 | + | and employer contributions shall not apply to any retirant described in | |
766 | + | subsection (7)(b) (6)(b) or to retirants who are independent contractors or | |
767 | + | employees of third-party entities who contract with a participating | |
768 | + | employer as described in subsection (7)(f) (6)(d), except as specifically | |
769 | + | provided in this subsection. | |
770 | + | (e) Nothing in this subsection shall be construed to create any right, | |
771 | + | or to authorize the creation of any right that is not subject to amendment or | |
772 | + | nullification by act of the legislature. | |
773 | + | Sec. 2. K.S.A. 74-4937 is hereby amended to read as follows: 74- | |
774 | + | 4937. (1) The normal retirement date of a member of the system who is in | |
775 | + | school employment and who is subject to K.S.A. 74-4940, and | |
776 | + | amendments thereto, shall be the first day of the month coinciding with or | |
777 | + | following termination of employment not followed by employment with | |
778 | + | any participating employer within 60 days, or 180 days as provided in | |
779 | + | K.S.A. 74-4914(10)(9), and amendments thereto, and without any | |
780 | + | prearranged agreement for employment with any participating employer, | |
781 | + | and the attainment of age 65 or, commencing July 1, 1986, age 65 or age | |
782 | + | 60 with the completion of 35 years of credited service or at any age with | |
783 | + | the completion of 40 years of credited service, or commencing July 1, | |
784 | + | 1993, any alternative normal retirement date already prescribed by law or | |
785 | + | age 62 with the completion of 10 years of credited service or the first day | |
786 | + | of the month coinciding with or following the date that the total of the | |
787 | + | number of years of credited service and the number of years of attained | |
788 | + | age of the member is equal to or more than 85. Each member upon giving | |
789 | + | prior notice to the appointing authority and the retirement system may | |
790 | + | retire on the normal retirement date or the first day of any month | |
791 | + | thereafter. Such member's application for retirement shall contain a | |
953 | 792 | certification by the member that the member will not be employed with | |
954 | 793 | any participating employer within 60 days, or 180 days as provided in | |
955 | 794 | K.S.A. 74-4914(10)(9), and amendments thereto, of retirement and the | |
956 | 795 | member has not entered into a prearranged agreement for employment | |
957 | 796 | with any participating employer. | |
958 | - | (3) The provisions of K.S.A. 74-4914(5), (7) and (10)(6) and (9), | |
959 | - | and amendments thereto, which that relate to an earnings limitation | |
960 | - | which when met or exceeded requires that the retirant not receive a | |
961 | - | retirement benefit for any month for during which such retirant serves | |
962 | - | in a position as described herein shall not apply to retirants who either | |
963 | - | retired under the provisions of K.S.A. 74-4914(l), and amendments | |
964 | - | thereto, related to normal retirement, or, if they retired under the | |
965 | - | provisions of K.S.A. 74-4914(4), and amendments thereto, related to | |
966 | - | early retirement, and are subsequently hired in a position that requires a HOUSE BILL No. 2711—page 16 | |
967 | - | license under K.S.A. 72-2157, and amendments thereto, or other | |
968 | - | provision of law. The provisions of this subsection shall only apply to | |
969 | - | retirants who retired prior to January 1, 2018. Except as otherwise | |
970 | - | provided, when a retirant is employed by the same school district or a | |
971 | - | different school district with which such retirant was employed during | |
972 | - | the final two years of such retirant's participation or employed as an | |
973 | - | independent contractor or by a third-party entity who contracts services | |
974 | - | with a school district to fill a position as described in this subsection, | |
975 | - | the participating employer of such retirant shall pay to the system the | |
976 | - | actuarially determined employer contribution based on the retirant's | |
977 | - | compensation during any such period of employment plus 8%. | |
797 | + | (2) Any member who is in school employment and who is subject to | |
798 | + | K.S.A. 74-4940, and amendments thereto, may retire before such | |
799 | + | member's normal retirement date on the first day of the month coinciding | |
800 | + | with or following termination of employment not followed by employment | |
801 | + | with any participating employer within 60 days, or 180 days as provided in | |
802 | + | K.S.A. 74-4914(10)(9), and amendments thereto, and the attainment of age | |
803 | + | 55 with the completion of 10 years of credited service, upon the filing with | |
804 | + | the office of the retirement system of an application for retirement in such | |
805 | + | form and manner as the board shall prescribe. The member's application | |
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849 | + | for retirement shall contain a certification by the member that the member | |
850 | + | will not be employed with any participating employer within 60 days, or | |
851 | + | 180 days as provided in K.S.A. 74-4914(10)(9), and amendments thereto, | |
852 | + | of retirement and the member has not entered into a prearranged | |
853 | + | agreement for employment with any participating employer. | |
854 | + | (3) The provisions of K.S.A. 74-4914(5), (7) and (10)(6) and (9), and | |
855 | + | amendments thereto, which that relate to an earnings limitation which | |
856 | + | when met or exceeded requires that the retirant not receive a retirement | |
857 | + | benefit for any month for during which such retirant serves in a position as | |
858 | + | described herein shall not apply to retirants who either retired under the | |
859 | + | provisions of K.S.A. 74-4914(l), and amendments thereto, related to | |
860 | + | normal retirement, or, if they retired under the provisions of K.S.A. 74- | |
861 | + | 4914(4), and amendments thereto, related to early retirement, and are | |
862 | + | subsequently hired in a position that requires a license under K.S.A. 72- | |
863 | + | 2157, and amendments thereto, or other provision of law. The provisions | |
864 | + | of this subsection shall only apply to retirants who retired prior to January | |
865 | + | 1, 2018. Except as otherwise provided, when a retirant is employed by the | |
866 | + | same school district or a different school district with which such retirant | |
867 | + | was employed during the final two years of such retirant's participation or | |
868 | + | employed as an independent contractor or by a third-party entity who | |
869 | + | contracts services with a school district to fill a position as described in | |
870 | + | this subsection, the participating employer of such retirant shall pay to the | |
871 | + | system the actuarially determined employer contribution based on the | |
872 | + | retirant's compensation during any such period of employment plus 8%. | |
978 | 873 | Commencing January 1, 2018, if a retirant is employed in a covered | |
979 | 874 | position, as defined in K.S.A. 74-49,202, and amendments thereto, the | |
980 | 875 | participating employer shall pay to the system the statutorily prescribed | |
981 | - | employer contribution rate on the first $25,000 $40,000 of such | |
982 | - | retirant's compensation in a calendar year and a 30% employer | |
983 | - | contribution on any compensation in excess of $25,000 $40,000 in a | |
984 | - | calendar year during any such period of employment. If a retirant is | |
985 | - | employed by more than one participating employer or performing | |
986 | - | duties in more than one position, contributions shall be made on | |
987 | - | compensation from all such employment for that calendar year. If a | |
988 | - | retirant is employed in a non-covered position, no employer | |
989 | - | contribution shall be paid to the system. The participating employer | |
990 | - | shall enroll all retirants and report to the system when compensation is | |
991 | - | paid to a retirant as provided in this subsection. Such notice shall | |
992 | - | contain a certification by the appointing authority of the participating | |
993 | - | employer that any hired retirant has not been employed by the | |
994 | - | participating employer within 60 days of such retirant's retirement and | |
876 | + | employer contribution rate on the first $25,000 $50,000 of such retirant's | |
877 | + | compensation in a calendar year and a 30% employer contribution on any | |
878 | + | compensation in excess of $25,000 $50,000 in a calendar year during any | |
879 | + | such period of employment. If a retirant is employed by more than one | |
880 | + | participating employer or performing duties in more than one position, | |
881 | + | contributions shall be made on compensation from all such employment | |
882 | + | for that calendar year. If a retirant is employed in a non-covered position, | |
883 | + | no employer contribution shall be paid to the system. The participating | |
884 | + | employer shall enroll all retirants and report to the system when | |
885 | + | compensation is paid to a retirant as provided in this subsection. Such | |
886 | + | notice shall contain a certification by the appointing authority of the | |
887 | + | participating employer that any hired retirant has not been employed by | |
888 | + | the participating employer within 60 days of such retirant's retirement and | |
995 | 889 | that there was no prearranged agreement for employment between the | |
996 | 890 | participating employer and the hired retirant. Upon request of the | |
997 | - | executive director of the system, the participating employer shall | |
998 | - | provide such information as may be needed by the executive director to | |
999 | - | carry out the provisions of this subsection. The provisions of this | |
1000 | - | subsection shall not apply to retirants employed as substitute teachers | |
1001 | - | without a contract. The provisions of K.S.A. 74-4914(5), and | |
1002 | - | amendments thereto, shall be applicable to retirants employed as | |
1003 | - | described in this subsection, except as specifically provided in this | |
1004 | - | subsection. Nothing in this subsection shall be construed to create any | |
1005 | - | right, or to authorize the creation of any right, which that is not subject | |
1006 | - | to amendment or nullification by act of the legislature. | |
1007 | - | (4) (a) On and after July 1, 2016, a school district may hire a | |
1008 | - | retired licensed professional to fill a special teacher position as defined | |
1009 | - | in K.S.A. 72-3404, and amendments thereto, if such retirant is hired not | |
1010 | - | prior to 60 days after such retirant's retirement date without any | |
1011 | - | prearrangement with such school district in the manner prescribed in | |
1012 | - | this subsection. The participating employer shall enroll all retirants and | |
1013 | - | report to the system when compensation is paid to a retirant as provided | |
1014 | - | in this subsection. Such notice shall contain a certification by the | |
1015 | - | appointing authority of the participating employer that any hired | |
1016 | - | retirant has not been employed by the participating employer within 60 | |
1017 | - | days of such retirant's retirement and that there was no prearranged | |
1018 | - | agreement for employment between the participating employer and the | |
1019 | - | hired retirant. Upon request of the executive director of the system, the | |
1020 | - | participating employer shall provide such information as may be | |
1021 | - | needed by the executive director to carry out the provisions of this | |
1022 | - | subsection. | |
891 | + | executive director of the system, the participating employer shall provide | |
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935 | + | such information as may be needed by the executive director to carry out | |
936 | + | the provisions of this subsection. The provisions of this subsection shall | |
937 | + | not apply to retirants employed as substitute teachers without a contract. | |
938 | + | The provisions of K.S.A. 74-4914(5), and amendments thereto, shall be | |
939 | + | applicable to retirants employed as described in this subsection, except as | |
940 | + | specifically provided in this subsection. Nothing in this subsection shall be | |
941 | + | construed to create any right, or to authorize the creation of any right, | |
942 | + | which that is not subject to amendment or nullification by act of the | |
943 | + | legislature. | |
944 | + | (4) (a) On and after July 1, 2016, a school district may hire a retired | |
945 | + | licensed professional to fill a special teacher position as defined in K.S.A. | |
946 | + | 72-3404, and amendments thereto, if such retirant is hired not prior to 60 | |
947 | + | days after such retirant's retirement date without any prearrangement with | |
948 | + | such school district in the manner prescribed in this subsection. The | |
949 | + | participating employer shall enroll all retirants and report to the system | |
950 | + | when compensation is paid to a retirant as provided in this subsection. | |
951 | + | Such notice shall contain a certification by the appointing authority of the | |
952 | + | participating employer that any hired retirant has not been employed by | |
953 | + | the participating employer within 60 days of such retirant's retirement and | |
954 | + | that there was no prearranged agreement for employment between the | |
955 | + | participating employer and the hired retirant. Upon request of the | |
956 | + | executive director of the system, the participating employer shall provide | |
957 | + | such information as may be needed by the executive director to carry out | |
958 | + | the provisions of this subsection. | |
1023 | 959 | (b) A retirant hired under the provisions of this subsection may | |
1024 | - | continue to receive such retirant's full retirement benefit for a period | |
1025 | - | not to exceed three school years or 36 months, whichever is less, and | |
1026 | - | shall not be subject to the provisions of K.S.A. 74-4914(5), and | |
960 | + | continue to receive such retirant's full retirement benefit for a period not to | |
961 | + | exceed three school years or 36 months, whichever is less, and shall not be | |
962 | + | subject to the provisions of K.S.A. 74-4914(5), and amendments thereto, | |
963 | + | which relate to a compensation limitation which when met or exceeded | |
964 | + | requires that the retirant not receive a retirement benefit for any month for | |
965 | + | which such retirant serves in a position as described herein. Such retirant | |
966 | + | may be employed by such employer for some or all of a school year, and | |
967 | + | in subsequent school years if the employer is unable to permanently fill the | |
968 | + | position with active members, so long as the retirant's total term of | |
969 | + | employment with all employers under this subsection does not exceed 36 | |
970 | + | months or three school years, whichever is less. After such period, the | |
971 | + | retirant shall be subject to the provisions of K.S.A. 74-4914(7), and | |
1027 | 972 | amendments thereto, which relate to a compensation limitation which | |
1028 | 973 | when met or exceeded requires that the retirant not receive a retirement | |
1029 | 974 | benefit for any month for which such retirant serves in a position as | |
1030 | - | described herein. Such retirant may be employed by such employer for HOUSE BILL No. 2711—page 17 | |
1031 | - | some or all of a school year, and in subsequent school years if the | |
1032 | - | employer is unable to permanently fill the position with active | |
1033 | - | members, so long as the retirant's total term of employment with all | |
1034 | - | employers under this subsection does not exceed 36 months or three | |
1035 | - | school years, whichever is less. After such period, the retirant shall be | |
1036 | - | subject to the provisions of K.S.A. 74-4914(7), and amendments | |
1037 | - | thereto, which relate to a compensation limitation which when met or | |
1038 | - | exceeded requires that the retirant not receive a retirement benefit for | |
1039 | - | any month for which such retirant serves in a position as described | |
1040 | - | herein. The participating employer of such retirant shall pay to the | |
1041 | - | system a 30% employer contribution based on the retirant's | |
1042 | - | compensation during any such period of employment. The provisions | |
1043 | - | of this subsection shall not apply to retirants employed as substitute | |
1044 | - | teachers without a contract. The provisions of K.S.A. 74-4914(5), and | |
1045 | - | amendments thereto, shall be applicable to retirants employed as | |
1046 | - | special teachers, except as specifically provided in this subsection. | |
1047 | - | (c) Each school district that uses the provisions of this subsection | |
1048 | - | to hire retirants shall maintain documentation describing their | |
1049 | - | recruiting efforts to obtain non-retirant employees to fill the special | |
1050 | - | teacher positions. Upon request of the joint committee on pensions, | |
1051 | - | investments and benefits, an employer shall provide such | |
1052 | - | documentation to the committee. If the committee finds that an | |
1053 | - | employer has not made sufficient efforts to hire a non-retirant for the | |
1054 | - | position or if the committee finds evidence of prearrangement in | |
1055 | - | violation of this section, the three-year exemption provided pursuant to | |
1056 | - | this subsection may be revoked. The committee shall notify the | |
1057 | - | executive director of the system that a retirant's exemption has been | |
1058 | - | revoked within 30 days of making such a determination. | |
975 | + | described herein. The participating employer of such retirant shall pay to | |
976 | + | the system a 30% employer contribution based on the retirant's | |
977 | + | compensation during any such period of employment. The provisions of | |
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1021 | + | this subsection shall not apply to retirants employed as substitute teachers | |
1022 | + | without a contract. The provisions of K.S.A. 74-4914(5), and amendments | |
1023 | + | thereto, shall be applicable to retirants employed as special teachers, | |
1024 | + | except as specifically provided in this subsection. | |
1025 | + | (c) Each school district that uses the provisions of this subsection to | |
1026 | + | hire retirants shall maintain documentation describing their recruiting | |
1027 | + | efforts to obtain non-retirant employees to fill the special teacher positions. | |
1028 | + | Upon request of the joint committee on pensions, investments and | |
1029 | + | benefits, an employer shall provide such documentation to the committee. | |
1030 | + | If the committee finds that an employer has not made sufficient efforts to | |
1031 | + | hire a non-retirant for the position or if the committee finds evidence of | |
1032 | + | prearrangement in violation of this section, the three-year exemption | |
1033 | + | provided pursuant to this subsection may be revoked. The committee shall | |
1034 | + | notify the executive director of the system that a retirant's exemption has | |
1035 | + | been revoked within 30 days of making such a determination. | |
1059 | 1036 | (d) An employer may submit a written assurance protocol to the | |
1060 | - | system to make a one-time extension to the exception provided for in | |
1061 | - | ||
1062 | - | ||
1063 | - | ||
1064 | - | ||
1065 | - | ||
1037 | + | system to make a one-time extension to the exception provided for in this | |
1038 | + | subsection by one year. Such written assurance protocol shall be signed by | |
1039 | + | the superintendent and the board president of the school district. Such | |
1040 | + | written assurance protocol shall state that the position was advertised on | |
1041 | + | multiple platforms for a minimum of 30 calendar days and that at least one | |
1042 | + | of the following conditions occurred: | |
1066 | 1043 | (i) No applications were submitted for the position; | |
1067 | 1044 | (ii) if applications were submitted, none of the applicants met the | |
1068 | 1045 | reference screening criteria of the employer; or | |
1069 | - | (iii) if applications were submitted, none of the applicants | |
1070 | - | ||
1071 | - | ||
1072 | - | ||
1073 | - | (e) Nothing in this subsection shall be construed to create any | |
1074 | - | ||
1046 | + | (iii) if applications were submitted, none of the applicants possessed | |
1047 | + | an appropriate teaching license for the state of Kansas or possessed the | |
1048 | + | appropriate credentials to receive any type of teaching license from the | |
1049 | + | state of Kansas. | |
1050 | + | (e) Nothing in this subsection shall be construed to create any right, | |
1051 | + | or to authorize the creation of any right, which is not subject to | |
1075 | 1052 | amendment or nullification by act of the legislature. | |
1076 | - | (f) The provisions of this subsection shall expire on January 1, | |
1077 | - | 2018. | |
1078 | - | (5) (a) On and after July 1, 2016, a school district may hire a | |
1079 | - | retired licensed professional to fill a non-special teacher position if | |
1080 | - | such retirant is hired not prior to 60 days after such retirant's retirement | |
1081 | - | date without any prearrangement with such school district, and if such | |
1082 | - | school district hires a retirant for a hard-to-fill position in the manner | |
1083 | - | prescribed in this subsection. The participating employer shall enroll all | |
1084 | - | retirants and report to the system when compensation is paid to a | |
1085 | - | retirant as provided in this subsection. Such notice shall contain a | |
1086 | - | certification by the appointing authority of the participating employer | |
1087 | - | that any hired retirant has not been employed by the participating | |
1088 | - | employer within 60 days of such retirant's retirement and that there was | |
1089 | - | no prearranged agreement for employment between the participating | |
1090 | - | employer and the hired retirant. Upon request of the executive director | |
1091 | - | of the system, the participating employer shall provide such | |
1092 | - | information as may be needed by the executive director to carry out the | |
1093 | - | provisions of this subsection. | |
1094 | - | (b) The state board of education shall annually certify the top five HOUSE BILL No. 2711—page 18 | |
1095 | - | types of licensed positions that are hard to fill. A school district may | |
1096 | - | hire a retirant to fill a hard-to-fill position for some or all of a school | |
1097 | - | year and in subsequent school years if the employer is unable to | |
1098 | - | permanently fill the position with an active member. A retirant first | |
1099 | - | hired under the provisions of this subsection may be retained by an | |
1100 | - | employer even if such retirant's type of position is no longer one of the | |
1101 | - | five types of positions certified by the state board of education. A | |
1102 | - | retirant hired under the provisions of this subsection may continue to | |
1103 | - | receive such retirant's full retirement benefit for a period not to exceed | |
1104 | - | three school years or 36 months, whichever is less, and shall not be | |
1105 | - | subject to the provisions of K.S.A. 74-4914(5), and amendments | |
1106 | - | thereto, which relate to a compensation limitation which when met or | |
1107 | - | exceeded requires that the retirant not receive a retirement benefit for | |
1108 | - | any month for which such retirant serves in a position as described | |
1109 | - | herein. Such retirant may be employed by such employer for some or | |
1110 | - | all of a school year, and in subsequent school years if the employer is | |
1111 | - | unable to permanently fill the position with active members, so long as | |
1112 | - | the retirant's total term of employment with all employers under this | |
1113 | - | subsection does not exceed 36 months or three school years, whichever | |
1114 | - | is less. After such period, the retirant shall be subject to the provisions | |
1115 | - | of K.S.A. 74-4914(7), and amendments thereto, which relate to a | |
1116 | - | compensation limitation which when met or exceeded requires that the | |
1053 | + | (f) The provisions of this subsection shall expire on January 1, 2018. | |
1054 | + | (5) (a) On and after July 1, 2016, a school district may hire a retired | |
1055 | + | licensed professional to fill a non-special teacher position if such retirant is | |
1056 | + | hired not prior to 60 days after such retirant's retirement date without any | |
1057 | + | prearrangement with such school district, and if such school district hires a | |
1058 | + | retirant for a hard-to-fill position in the manner prescribed in this | |
1059 | + | subsection. The participating employer shall enroll all retirants and report | |
1060 | + | to the system when compensation is paid to a retirant as provided in this | |
1061 | + | subsection. Such notice shall contain a certification by the appointing | |
1062 | + | authority of the participating employer that any hired retirant has not been | |
1063 | + | employed by the participating employer within 60 days of such retirant's | |
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1107 | + | retirement and that there was no prearranged agreement for employment | |
1108 | + | between the participating employer and the hired retirant. Upon request of | |
1109 | + | the executive director of the system, the participating employer shall | |
1110 | + | provide such information as may be needed by the executive director to | |
1111 | + | carry out the provisions of this subsection. | |
1112 | + | (b) The state board of education shall annually certify the top five | |
1113 | + | types of licensed positions that are hard to fill. A school district may hire a | |
1114 | + | retirant to fill a hard-to-fill position for some or all of a school year and in | |
1115 | + | subsequent school years if the employer is unable to permanently fill the | |
1116 | + | position with an active member. A retirant first hired under the provisions | |
1117 | + | of this subsection may be retained by an employer even if such retirant's | |
1118 | + | type of position is no longer one of the five types of positions certified by | |
1119 | + | the state board of education. A retirant hired under the provisions of this | |
1120 | + | subsection may continue to receive such retirant's full retirement benefit | |
1121 | + | for a period not to exceed three school years or 36 months, whichever is | |
1122 | + | less, and shall not be subject to the provisions of K.S.A. 74-4914(5), and | |
1123 | + | amendments thereto, which relate to a compensation limitation which | |
1124 | + | when met or exceeded requires that the retirant not receive a retirement | |
1125 | + | benefit for any month for which such retirant serves in a position as | |
1126 | + | described herein. Such retirant may be employed by such employer for | |
1127 | + | some or all of a school year, and in subsequent school years if the | |
1128 | + | employer is unable to permanently fill the position with active members, | |
1129 | + | so long as the retirant's total term of employment with all employers under | |
1130 | + | this subsection does not exceed 36 months or three school years, | |
1131 | + | whichever is less. After such period, the retirant shall be subject to the | |
1132 | + | provisions of K.S.A. 74-4914(7), and amendments thereto, which relate to | |
1133 | + | a compensation limitation which when met or exceeded requires that the | |
1117 | 1134 | retirant not receive a retirement benefit for any month for which such | |
1118 | 1135 | retirant serves in a position as described herein. The participating | |
1119 | 1136 | employer of such retirant shall pay to the system a 30% employer | |
1120 | - | contribution based on the retirant's compensation during any such | |
1121 | - | ||
1122 | - | ||
1123 | - | ||
1124 | - | ||
1125 | - | ||
1126 | - | (c) Each school district that uses the provisions of this subsection | |
1127 | - | ||
1128 | - | describing their recruiting efforts to obtain non-retirant employees to | |
1129 | - | ||
1130 | - | ||
1137 | + | contribution based on the retirant's compensation during any such period | |
1138 | + | of employment. The provisions of this subsection shall not apply to | |
1139 | + | retirants employed as substitute teachers without a contract. The provisions | |
1140 | + | of K.S.A. 74-4914(5), and amendments thereto, shall be applicable to | |
1141 | + | retirants employed as described in this subsection, except as specifically | |
1142 | + | provided in this subsection. | |
1143 | + | (c) Each school district that uses the provisions of this subsection to | |
1144 | + | hire retirants for hard-to-fill positions shall maintain documentation | |
1145 | + | describing their recruiting efforts to obtain non-retirant employees to fill | |
1146 | + | the hard-to-fill positions. Upon request of the joint committee on pensions, | |
1147 | + | investments and benefits, a school district shall provide such | |
1131 | 1148 | documentation to the committee. If the committee finds that a school | |
1132 | - | district has not made sufficient efforts to hire a non-retirant for the | |
1133 | - | position or if the committee finds evidence of prearrangement in | |
1134 | - | violation of this section, the three-year exemption provided pursuant to | |
1135 | - | this subsection may be revoked. The committee shall notify the | |
1136 | - | executive director of the system that a retirant's exemption has been | |
1137 | - | revoked within 30 days of making such a determination. | |
1149 | + | district has not made sufficient efforts to hire a non-retirant for the position | |
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1193 | + | or if the committee finds evidence of prearrangement in violation of this | |
1194 | + | section, the three-year exemption provided pursuant to this subsection may | |
1195 | + | be revoked. The committee shall notify the executive director of the | |
1196 | + | system that a retirant's exemption has been revoked within 30 days of | |
1197 | + | making such a determination. | |
1138 | 1198 | (d) An employer may submit a written assurance protocol to the | |
1139 | - | system to make a one-time extension to the exception provided for in | |
1140 | - | ||
1141 | - | ||
1142 | - | ||
1143 | - | ||
1144 | - | ||
1199 | + | system to make a one-time extension to the exception provided for in this | |
1200 | + | subsection by one year. Such written assurance protocol shall be signed by | |
1201 | + | the superintendent and the board president of the school district. Such | |
1202 | + | written assurance protocol shall state that the position was advertised on | |
1203 | + | multiple platforms for a minimum of 30 calendar days and that at least one | |
1204 | + | of the following conditions occurred: | |
1145 | 1205 | (i) No applications were submitted for the position; | |
1146 | 1206 | (ii) if applications were submitted, none of the applicants met the | |
1147 | 1207 | reference screening criteria of the employer; or | |
1148 | - | (iii) if applications were submitted, none of the applicants | |
1149 | - | ||
1150 | - | ||
1151 | - | ||
1152 | - | (e) Nothing in this subsection shall be construed to create any | |
1153 | - | ||
1208 | + | (iii) if applications were submitted, none of the applicants possessed | |
1209 | + | an appropriate teaching license for the state of Kansas or possessed the | |
1210 | + | appropriate credentials to receive any type of teaching license from the | |
1211 | + | state of Kansas. | |
1212 | + | (e) Nothing in this subsection shall be construed to create any right, | |
1213 | + | or to authorize the creation of any right, which is not subject to | |
1154 | 1214 | amendment or nullification by act of the legislature. | |
1155 | - | (f) The provisions of this subsection shall expire on January 1, | |
1156 | - | 2018. | |
1215 | + | (f) The provisions of this subsection shall expire on January 1, 2018. | |
1157 | 1216 | (6)(4) The provisions of K.S.A. 74-4914(8)(7), and amendments | |
1158 | - | thereto, shall apply to retirants under the provisions of this section. | |
1217 | + | thereto, shall apply to retirants under the provisions of this section. | |
1159 | 1218 | (7)(5) For the purposes of this section a prearranged agreement for | |
1160 | - | employment may be determined by whether the facts and | |
1161 | - | circumstances of the situation indicate that the employer and employee | |
1162 | - | reasonably anticipated that further services would be performed after | |
1163 | - | the employee's retirement. | |
1164 | - | Sec. 12. K.S.A. 74-4957 is hereby amended to read as follows: 74- | |
1165 | - | 4957. (1) The normal retirement date for a member of the system who | |
1166 | - | is appointed or employed prior to July 1, 1989, and who does not make | |
1167 | - | an election pursuant to K.S.A. 74-4955a, and amendments thereto, shall | |
1168 | - | be the first day of the month coinciding with or following termination | |
1169 | - | of employment not followed by employment with any participating | |
1170 | - | employer within 30 days, and the attainment of age 55 and the | |
1171 | - | completion of 20 years of credited service or the completion of 32 | |
1172 | - | years of credited service regardless of the age of the member. Any | |
1173 | - | member may retire on such member's normal retirement date or on the | |
1174 | - | first day of any month thereafter. | |
1175 | - | (2) Early retirement. Any member who is appointed or employed | |
1176 | - | prior to July 1, 1989, and who does not make an election pursuant to | |
1177 | - | K.S.A. 74-4955a, and amendments thereto, may retire before such | |
1178 | - | member's normal retirement date on the first day of any month | |
1179 | - | coinciding with or following termination of employment not followed | |
1180 | - | by employment with any participating employer within 30 days and the | |
1181 | - | attainment of age 50 and the completion of 20 years of credited service. | |
1182 | - | (3) Notwithstanding the provisions of subsections (1) and (2) of | |
1183 | - | this section and K.S.A. 74-4955a, 74-4957a, 74-4958a, 74-4960a, 74- | |
1184 | - | 4963a and 74-4964a, and amendments thereto, the normal retirement | |
1185 | - | date for any member who was, up to the entry date of such member's | |
1186 | - | employer, covered by a pension system under the provisions of K.S.A. | |
1187 | - | 13-14a01 to through 13-14a14, inclusive, or 14-10a01 to through 14- | |
1188 | - | 10a15, inclusive, and amendments thereto, shall be the first day of the | |
1189 | - | month coinciding with or following the attainment of age 50 and the | |
1190 | - | completion of 25 years of credited service. | |
1191 | - | (4) In no event shall a member be eligible to retire until such | |
1192 | - | member has been a contributing member of the system for 12 months | |
1193 | - | of participating service, and shall have given such member's employer | |
1194 | - | prior notice of retirement. | |
1195 | - | (5) If a retirant who retired on or after July 1, 1994, is employed, | |
1196 | - | elected or appointed in or to any position or office for which | |
1197 | - | compensation for service is paid in an amount equal to $25,000 | |
1198 | - | $40,000 or more in any one such calendar year, by the same state | |
1199 | - | agency or the same police or fire department of any county, city, | |
1200 | - | township or special district or the same sheriff's office of a county | |
1201 | - | during the final two years of such retirant's participation, such retirant | |
1202 | - | shall not receive any retirement benefit for any month for which such | |
1203 | - | retirant serves in such position or office. The participating employer | |
1204 | - | shall report to the system within 30 days of when the compensation | |
1205 | - | paid to the retirant is equal to or exceeds any limitation provided by this | |
1206 | - | section. Any retirant employed by a participating employer in the | |
1207 | - | Kansas police and firemen's retirement system shall not make | |
1208 | - | contributions nor receive additional credit under such system for such | |
1209 | - | service except as provided by this section. Upon request of the | |
1210 | - | executive director of the system, the secretary of revenue shall provide | |
1211 | - | such information as may be needed by the executive director to carry | |
1212 | - | out the provisions of this act. | |
1213 | - | Sec. 13. K.S.A. 74-4957a is hereby amended to read as follows: | |
1214 | - | 74-4957a. (1) The normal retirement date for a member of the system | |
1215 | - | who is appointed or employed on or after July 1, 1989, or who makes | |
1216 | - | an election pursuant to K.S.A. 74-4955a, and amendments thereto, to | |
1217 | - | be covered by the provisions of this act shall be the first day of the | |
1218 | - | month coinciding with or following termination of employment not | |
1219 | - | followed by employment with any participating employer within 30 | |
1220 | - | days and the attainment of age 55 and the completion of 20 years of | |
1221 | - | credited service, age 50 and the completion of 25 years of credited | |
1222 | - | service or age 60 with the completion of 15 years of credited service. HOUSE BILL No. 2711—page 20 | |
1223 | - | Any such member may retire on such member's normal retirement date | |
1224 | - | or on the first day of any month thereafter. | |
1225 | - | (2) Any member may retire before such member's normal | |
1226 | - | retirement date on the first day of any month coinciding with or | |
1227 | - | following termination of employment not followed by employment | |
1228 | - | with any participating employer within 30 days and the attainment of | |
1229 | - | age 50 and the completion of 20 years of credited service. | |
1230 | - | (3) In no event shall a member be eligible to retire until such | |
1231 | - | member has been a contributing member of the system for 12 months | |
1232 | - | of participating service, and shall have given such member's employer | |
1233 | - | prior notice of retirement. | |
1234 | - | (4) If a retirant who retired on or after July 1, 1996, is employed, | |
1235 | - | elected or appointed in or to any position or office for which | |
1236 | - | compensation for service is paid in an amount equal to $25,000 | |
1237 | - | $40,000 or more in any one such calendar year, by the same state | |
1238 | - | agency or the same police or fire department of any county, city, | |
1239 | - | township or special district or the same sheriff's office of a county | |
1240 | - | during the final two years of such retirant's participation, such retirant | |
1241 | - | shall not receive any retirement benefit for any month for which such | |
1242 | - | retirant serves in such position or office. The participating employer | |
1243 | - | shall report to the system within 30 days of when the compensation | |
1244 | - | paid to the retirant is equal to or exceeds any limitation provided by this | |
1245 | - | section. Any retirant employed by a participating employer in the | |
1246 | - | Kansas police and firemen's retirement system shall not make | |
1247 | - | contributions nor receive additional credit under such system for such | |
1248 | - | service except as provided by this section. Upon request of the | |
1249 | - | executive director of the system, the secretary of revenue shall provide | |
1250 | - | such information as may be needed by the executive director to carry | |
1251 | - | out the provisions of this act. | |
1252 | - | (5) The provisions of this section shall be effective on and after | |
1253 | - | July 1, 1989, and shall apply only to members who were appointed or | |
1254 | - | employed prior to July 1, 1989, and who made an election pursuant to | |
1255 | - | K.S.A. 74-4955a, and amendments thereto; and persons appointed or | |
1256 | - | employed on or after July 1, 1989. | |
1257 | - | Sec. 14. K.S.A. 74-4989 is hereby amended to read as follows: 74- | |
1258 | - | 4989. (1) (a) Except as provided in paragraph (b), pursuant to the | |
1259 | - | provisions of K.S.A. 74-49,128, and amendments thereto, upon the | |
1260 | - | death of a retirant, the board of trustees of the Kansas public employees | |
1261 | - | retirement system shall pay a lump-sum death benefit to: (i) The | |
1262 | - | retirant's beneficiary which that shall not exceed $4,000 $6,000 for | |
1263 | - | such retirant, less any amount payable for funeral benefits under the | |
1264 | - | applicable provisions of any local police or fire pension plan, as | |
1265 | - | defined by subsection (c) of K.S.A. 12-5001(c), and amendments | |
1266 | - | thereto; or to (ii) a funeral establishment as directed by the retirant and | |
1267 | - | filed in the office of the system prior to such retirant's death. | |
1268 | - | (b) Notwithstanding the provisions of K.S.A. 74-4923, and | |
1269 | - | amendments thereto, any amounts owed the system shall be deducted | |
1270 | - | from such lump-sum death benefit. | |
1271 | - | (2) As used in this section, "retirant" means any person who is a | |
1272 | - | member or special member of the Kansas public employees retirement | |
1273 | - | system, the Kansas police and firemen's retirement system, the state | |
1274 | - | school retirement system or the retirement system for judges and who | |
1275 | - | has retired. | |
1276 | - | Sec. 15. K.S.A. 74-49,315 is hereby amended to read as follows: | |
1277 | - | 74-49,315. A member's beneficiary shall be determined as provided in | |
1278 | - | the pre-2015 plan. Upon filing a written application with the board after | |
1279 | - | the death of a member receiving a benefit under subsections (a) or (b) | |
1280 | - | of K.S.A. 74-49,313(a) or (b), and amendments thereto, the member's | |
1281 | - | beneficiary is entitled to a $4,000 the lump-sum death benefit as | |
1282 | - | provided in K.S.A. 74-4989, and amendments thereto. HOUSE BILL No. 2711—page 21 | |
1283 | - | Sec. 16. K.S.A. 74-4937, 74-4957, 74-4957a, 74-4989 and 74- | |
1284 | - | 49,315 and K.S.A. 2023 Supp. 74-4911, 74-4914 and 74-4921 are | |
1285 | - | hereby repealed. | |
1286 | - | Sec. 17. This act shall take effect and be in force from and after its | |
1219 | + | employment may be determined by whether the facts and circumstances of | |
1220 | + | the situation indicate that the employer and employee reasonably | |
1221 | + | anticipated that further services would be performed after the employee's | |
1222 | + | retirement. | |
1223 | + | Sec. 3. K.S.A. 74-4937 and K.S.A. 2023 Supp. 74-4914 are hereby | |
1224 | + | repealed. | |
1225 | + | Sec. 4. This act shall take effect and be in force from and after its | |
1287 | 1226 | publication in the statute book. | |
1288 | - | I hereby certify that the above BILL originated in the HOUSE, and was | |
1289 | - | adopted by that body | |
1290 | - | ||
1291 | - | HOUSE adopted | |
1292 | - | Conference Committee Report | |
1293 | - | ||
1294 | - | Speaker of the House. | |
1295 | - | ||
1296 | - | Chief Clerk of the House. | |
1297 | - | Passed the SENATE | |
1298 | - | as amended | |
1299 | - | SENATE adopted | |
1300 | - | Conference Committee Report | |
1301 | - | ||
1302 | - | President of the Senate. | |
1303 | - | ||
1304 | - | Secretary of the Senate. | |
1305 | - | APPROVED | |
1306 | - | ||
1307 | - | ||
1308 | - | Governor. | |
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