Kansas House Bill HB2711 Latest Draft

                            HOUSE BILL No. 2711
AN ACT concerning state-managed funds; relating to investment procedures, standards and 
requirements therefor and certain retirement benefits therefrom; enacting the 
countries of concern divestment act; requiring divestment from investments with 
countries of concern and providing exceptions therefor; prohibiting investments and 
deposits with any bank or company domiciled in a country of concern; indemnifying 
state-managed funds with respect to actions taken in compliance with such act; 
providing an expiration date for such act; relating to the Kansas public employees 
retirement system and systems thereunder; Kansas public employees retirement fund; 
increasing the statutory alternative investment percentage limit to 25%; increasing 
the membership waiting period for direct support positions of community service 
providers; increasing the lump-sum death benefit; employment after retirement; 
increasing the amount of retirant compensation subject to the statutory employer 
contribution rate; providing an exemption for retirants employed by a community 
developmental disability organization or a community service provider affiliated with 
a community developmental disability organization in a licensed professional nurse, 
licensed practical nurse or direct support position; increasing the earnings limit for 
members of the Kansas police and firemen's retirement system; amending K.S.A. 74-
4937, 74-4957, 74-4957a, 74-4989 and 74-49,315 and K.S.A. 2023 Supp. 74-4911, 
74-4914 and 74-4921 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. The provisions of sections 1 through 7, and 
amendments thereto, shall be known and may be cited as the countries 
of concern divestment act.
New Sec. 2. As used in this act:
(a) "Act" means the countries of concern divestment act.
(b) "Company" means any:
(1) For-profit corporation, partnership, limited partnership, limited 
liability partnership, limited liability company, joint venture, trust, 
association, sole proprietorship or other organization, including any:
(A) Subsidiary of such company, a majority ownership interest of 
which is held by such company;
(B) parent company that holds a majority ownership of such 
company; and
(C) other affiliate or business association of such company whose 
primary purpose is to make a profit; or
(2) nonprofit organization.
(c) (1) "Country of concern" means the following:
(A) People's republic of China, including the Hong Kong special 
administrative region;
(B) republic of Cuba;
(C) islamic republic of Iran;
(D) democratic people's republic of Korea;
(E) Russian federation; and
(F) Bolivarian republic of Venezuela.
(2) "Country of concern" does not include the republic of China 
(Taiwan).
(d) "Covered transaction" means the same as defined in 31 C.F.R. 
§ 800.213, as in effect on July 1, 2024.
(e) "Covered control transaction" means the same as defined in 31 
C.F.R. § 800.210, as in effect on July 1, 2024.
(f) "Domicile" means the country where:
(1) A company is organized;
(2) a company completes a substantial portion of its business; or
(3) a majority of a company's ownership interest is held.
(g) "Person" means an individual.
(h) "Person owned or controlled by or subject to the jurisdiction or 
direction of a country of concern" means any:
(1) Person, wherever located, who is a citizen of a nation-state 
controlled by a country of concern, unless such person is a lawful 
permanent resident of the United States; or
(2) corporation, partnership, association or other organization 
organized under the laws of a nation-state controlled by a country of 
concern.
(i) "State agency" means any department, authority, bureau, 
division, office or other governmental agency of this state.
(j) "State-managed fund" means:
(1) The Kansas public employees retirement fund managed by the  HOUSE BILL No. 2711—page 2
board of trustees of the Kansas public employees retirement system in 
accordance with K.S.A. 74-4921, and amendments thereto;
(2) the pooled money investment portfolio managed by the pooled 
money investment board in accordance with article 42 of chapter 75 of 
the Kansas Statutes Annotated, and amendments thereto; and
(3) any other fund that is sponsored or managed by a state agency.
New Sec. 3. (a) (1) Notwithstanding the provisions of K.S.A. 74-
4921, and amendments thereto, or any other statute to the contrary, and 
except as provided in paragraph (2), a state-managed fund shall sell, 
redeem, divest or withdraw all publicly traded securities of any country 
of concern or person owned or controlled by or subject to the 
jurisdiction or direction of a country of concern in accordance with the 
following schedule:
(A) At least 50% of such assets shall be removed from the state-
managed fund's assets under management not later than July 1, 2025, or 
one year from the date section 2, and amendments thereto, is amended 
to include such country of concern if amended after July 1, 2024, 
unless the state-managed fund determines that a later date is more 
prudent based on a good faith exercise of the state-managed fund's 
fiduciary discretion and subject to subparagraph (B); and
(B) 100% of such assets shall be removed from the state-managed 
fund's assets under management not later than January 1, 2026, or one 
year from the date section 2, and amendments thereto, is amended to 
include such country of concern if amended after July 1, 2024.
(2) If a country of concern takes action to prohibit or restrict the 
selling, redeeming, divesting or withdrawing of publicly traded 
securities of any country of concern or person owned or controlled by 
or subject to the jurisdiction or direction of a country of concern 
beyond the scheduled removal dates provided in paragraph (1), the 
state-managed fund shall remove 100% of such assets from the state-
managed fund's assets not later than one year from the date that such 
action is ended by such country of concern.
(b) A state-managed fund shall not knowingly acquire securities of 
any country of concern or person owned or controlled by or subject to 
the jurisdiction or direction of a country of concern.
(c) A state-managed fund shall not invest or make a deposit in any 
bank that is domiciled in a country of concern.
New Sec. 4. (a) Notwithstanding the provisions of K.S.A. 74-
4921, and amendments thereto, or any other statute to the contrary, a 
state-managed fund shall divest from any indirect holdings in actively 
or passively managed investment funds containing publicly traded 
securities of any country of concern or person owned or controlled by 
or subject to the jurisdiction or direction of a country of concern. Such 
state-managed fund may submit letters to the managers of each 
investment fund containing publicly traded securities of any country of 
concern or person owned or controlled by or subject to the jurisdiction 
or direction of a country of concern requesting that they remove such 
publicly traded securities from the fund or create a similar actively or 
passively managed fund with indirect holdings devoid of such publicly 
traded securities. If a manager creates a similar fund with substantially 
the same management fees and substantially the same level of 
investment risk and anticipated return, the state-managed fund may 
replace all applicable investments with investments in the similar fund 
in a time frame consistent with prudent fiduciary standards but not later 
than the 450
th
 day after the date the fund is created. If a manager does 
not create such similar fund, the state-managed fund shall divest from 
such indirect holdings in actively or passively managed investment 
funds.
(b) (1) The provisions of this act shall not apply to any real estate 
or private equity investment commitment made by a state-managed 
fund prior to July 1, 2024, or to a real estate or private equity 
investment commitment made by a state-managed fund prior to the date 
that section 2, and amendments thereto, is amended to include a 
country of concern, if amended after July 1, 2024. HOUSE BILL No. 2711—page 3
(2) On and after July 1, 2024, a state-managed fund shall not make 
any new real estate or private equity investment commitment in a 
person owned or controlled by or subject to the jurisdiction of a country 
of concern.
New Sec. 5. Not later than the first day of the regular session of 
the legislature, each year, each state-managed fund shall file a report 
with the legislature and the Kansas public employees retirement system 
shall also file such report with the joint committee on pensions, 
investments and benefits that:
(a) Identifies all securities sold, redeemed, divested or withdrawn 
in compliance with section 3(a), and amendments thereto;
(b) identifies amendments to section 2, and amendments thereto, 
that add or remove a country of concern after the later of July 1, 2024, 
or the last date such information was reported under this section; and
(c) summarizes any changes made under section 4, and 
amendments thereto.
New Sec. 6. In a cause of action based on an action, inaction, 
decision, divestment, investment, report or other determination made or 
taken in compliance with this act, without regard to whether the person 
performed services for compensation, the state shall indemnify and 
hold harmless for actual damages, court costs and attorney fees 
adjudged against members of a state-managed fund or any other 
officers of such state-managed fund related to the act or omission on 
which the damages are based and defend the state-managed fund and 
any of such state-managed fund's current and former employees.
New Sec. 7. (a) The provisions of this act shall expire on July 1, 
2029.
(b) On or after July 1, 2028, but before July 15, 2028, the Kansas 
public employees retirement system shall notify the speaker of the 
house of representatives, the president of the senate and the chairperson 
of the joint committee on pensions, investments and benefits that this 
act is scheduled to expire on July 1, 2029.
Sec. 8. K.S.A. 2023 Supp. 74-4911 is hereby amended to read as 
follows: 74-4911. (1) Any employee of a participating employer other 
than an elected official on the entry date of such employer shall be a 
member of the system on either the entry date or the first day of the 
payroll period coinciding with or following the completion of one year 
of service, whichever is later, except that an employee of a participating 
employer who was first employed by a participating employer on or 
after July 1, 2008, but before July 1, 2009, shall be a member on July 1, 
2009, and except that an employee who is first employed by a 
participating employer on or after July 1, 2009, shall be a member of 
the system on the first day of employment of such employee with such 
participating employer. On and after July 1, 2019, employees employed 
in direct support positions of an affiliated employer organized under 
K.S.A. 19-4001, and amendments thereto, and or defined under K.S.A. 
39-1803, and amendments thereto, may become a member of the 
system on the first day of the payroll period coinciding with or 
following the completion of a two-year period of training, whichever is 
later. For purposes of this act occasional breaks in service which shall 
not exceed an aggregate of 10 days in any such year shall not constitute 
a break in service for purposes of determining the membership date of 
such employee.
(2) Except as otherwise provided in this subsection, any employee 
other than an elected official who is employed by a participating 
employer after the entry date of such employer shall be a member of 
the system on the first day of the payroll period coinciding with or 
following completion of one year of continuous service. For purposes 
of this act, occasional breaks in service which shall not exceed an 
aggregate of 10 days in any such year shall not constitute a break in 
continuous service for purposes of determining the membership date of 
such employee. For purposes of this subsection, any employee of a 
local governmental unit which has its own pension plan who becomes 
an employee of a participating employer as a result of a merger or  HOUSE BILL No. 2711—page 4
consolidation of services provided by local governmental units, which 
occurred on January 1, 1994, may count service with such local 
governmental unit in determining whether such employee has met the 
one year of continuous service requirement contained in this 
subsection.
(3) Any employee who is an elected official and is eligible to join 
the system shall file, within 90 days after taking the oath of office, an 
irrevocable election to become or not to become a member of the 
system. Such election shall become effective immediately upon making 
such election, if such election is made within 14 days of taking the oath 
of office or, otherwise, on the first day of the first payroll period of the 
first quarter following receipt of the election in the office of the 
retirement system. In the event that such elected official fails to file the 
election to become a member of the retirement system, it shall be 
presumed that such person has elected not to become a member.
(4) Except as otherwise required by USERRA, any employee 
other than an elected official who is in military service or on leave of 
absence on the entry date of such employee's employer shall become a 
member of the system upon returning to active employment or on the 
first day of the payroll period coinciding with or following the 
completion of one year of service, whichever is later. For purposes of 
this act, occasional breaks in service which shall not exceed an 
aggregate of 10 days in any such year shall not constitute a break in 
service for purposes of determining the membership date of such 
employee.
(5) Any employee of the state of Kansas other than an elected 
official, who is receiving or is eligible for assistance by the state board 
of regents in the purchase of a retirement annuity under K.S.A. 74-
4925, and amendments thereto, and who becomes ineligible for such 
assistance because such employee's position is reclassified to a position 
in the classified service under the Kansas civil service act, or who 
becomes ineligible for such assistance because such person accepts and 
transfers to a position in the classified service under the Kansas civil 
service act shall be a member of the system on the first day of the 
payroll period coinciding with or following the effective date of such 
reclassification or transfer. Any such employee who became ineligible 
for such assistance prior to the effective date of this act April 15, 1977, 
because of such a reclassification or such a transfer occurring prior to 
the effective date of this act April 15, 1977, and who is not a member of 
the system on the effective date of this act April 15, 1977, shall be a 
member of the system on the first day of the payroll period coinciding 
with or following the effective date of this act April 15, 1977.
(6) Any employee of the state board of regents or of an 
educational institution under its management, other than an elected 
official, who is a member of the system and who becomes ineligible to 
be a member of the system because such employee's position is 
reclassified to a position under the Kansas civil service act which is 
eligible for assistance by the state board of regents in the purchase of a 
retirement annuity under K.S.A. 74-4925, and amendments thereto, or 
who becomes ineligible to be a member of the system because such 
employee transfers to a position under the Kansas civil service act 
which is eligible for such assistance, shall become eligible for such 
assistance in accordance with the provisions of K.S.A. 74-4925, and 
amendments thereto, unless such employee files a written election in 
the office of the retirement system, in the form and manner prescribed 
by the board of trustees thereof, to remain a member of the system prior 
to the first day of the first complete payroll period occurring after the 
effective date of such reclassification or transfer. Failure to file such 
written election shall be presumed to be an election not to remain a 
member of the system and to become eligible for assistance by the state 
board of regents in the purchase of a retirement annuity under K.S.A. 
74-4925, and amendments thereto. Such election, whether to remain a 
member of the system or to become eligible for such assistance, shall 
be effective as of the effective date of such reclassification or transfer,  HOUSE BILL No. 2711—page 5
and shall be irrevocable.
(7) Any elected official who at the time of becoming an elected 
official is already a member of the system by being or having been an 
employee of a participating employer shall continue as a member of the 
system.
Sec. 9. K.S.A. 2023 Supp. 74-4914 is hereby amended to read as 
follows: 74-4914.(1) The normal retirement date for a member of the 
system shall be the first day of the month coinciding with or following 
termination of employment with any participating employer not 
followed by employment with any participating employer within 60 
days, or 180 days as provided in subsection (10) (9), and without any 
prearranged agreement for employment with any participating 
employer, and the attainment of age 65 or, commencing July 1, 1993, 
age 62 with the completion of 10 years of credited service or the first 
day of the month coinciding with or following the date that the total of 
the number of years of credited service and the number of years of 
attained age of the member is equal to or more than 85. In no event 
shall a normal retirement date for a member be before six months after 
the entry date of the participating employer by whom such member is 
employed. A member may retire on the normal retirement date or on the 
first day of any month thereafter upon the filing with the office of the 
retirement system of an application in such form and manner as the 
board shall prescribe. Such application shall contain a certification by 
the member that the member will not be employed with any 
participating employer within 60 days, or 180 days as provided in 
subsection (10) (9), of retirement and the member has not entered into a 
prearranged agreement for employment with any participating 
employer. Nothing herein shall prevent any person, member or retirant 
from being employed, appointed or elected as an employee, appointee, 
officer or member of the legislature. Elected officers may retire from 
the system on any date on or after the attainment of the normal 
retirement date, but no retirement benefits payable under this act shall 
be paid until the member has terminated such member's office.
(2) No retirant shall make contributions to the system or receive 
service credit for any service after the date of retirement.
(3) Any member who is an employee of an affiliating employer 
pursuant to K.S.A. 74-4954b, and amendments thereto, and has not 
withdrawn such member's accumulated contributions from the Kansas 
police and firemen's retirement system may retire before such member's 
normal retirement date on the first day of any month coinciding with or 
following the attainment of age 55.
(4) Any member may retire before such member's normal 
retirement date on the first day of any month coinciding with or 
following termination of employment with any participating employer 
not followed by employment with any participating employer within 60 
days, or 180 days as provided in subsection (10) (9), and the attainment 
of age 55 with the completion of 10 years of credited service, but in no 
event before six months after the entry date, upon the filing with the 
office of the retirement system of an application for retirement in such 
form and manner as the board shall prescribe. The member's 
application for retirement shall contain a certification by the member 
that the member will not be employed with any participating employer 
within 60 days, or 180 days as provided in subsection (10) (9), of 
retirement and the member has not entered into a prearranged 
agreement for employment with any participating employer.
(5) Except as provided in subsections (7) and (10), on or after July 
1, 2006, through December 31, 2017, for any retirant who is first 
employed or appointed in or to any position or office by a participating 
employer other than a participating employer for which such retirant 
was employed or appointed during the final two years of such retirant's 
participation, and, on or after April 1, 2009, for any retirant who is 
employed by a third-party entity who contracts services with a 
participating employer other than a participating employer for which 
such retirant was employed or appointed during the final two years of  HOUSE BILL No. 2711—page 6
such retirant's participation to fill a position covered under K.S.A. 72-
2215(a), and amendments thereto, with such retirant, such participating 
employer shall pay to the system the actuarially determined employer 
contribution and the statutorily prescribed employee contribution based 
on the retirant's compensation during any such period of employment 
or appointment. If a retirant is employed or appointed in or to any 
position or office for which compensation for service is paid in an 
amount equal to $25,000 or more in any one calendar year between 
July 1, 2016, and January 1, 2018, by any participating employer for 
which such retirant was employed or appointed during the final two 
years of such retirant's participation, and, on or after April 1, 2009, by 
any third-party entity who contracts services to fill a position covered 
under K.S.A. 72-2215(a), and amendments thereto, with such retirant 
with a participating employer for which such retirant was employed or 
appointed during the final two years of such retirant's participation, 
such retirant shall not receive any retirement benefit for any month for 
which such retirant serves in such position or office. The participating 
employer who employs such retirant whether by contract directly with 
the retirant or through an arrangement with a third-party entity shall 
report to the system within 30 days of when the compensation paid to 
the retirant is equal to or exceeds any limitation provided by this 
section. Any participating employer who contracts services with any 
such third-party entity to fill a position covered under K.S.A. 72-
2215(a), and amendments thereto, shall include in such contract a 
provision or condition which requires the third-party entity to provide 
the participating employer with the necessary compensation paid 
information related to any such position filled by the third-party entity 
with a retirant to enable the participating employer to comply with 
provisions of this subsection relating to the payment of contributions 
and reporting requirements. The provisions and requirements provided 
for in amendments made in this act which relate to positions filled with 
a retirant or employment of a retirant by a third-party entity shall not 
apply to any contract for services entered into prior to April 1, 2009, 
between a participating employer and third-party entity as described in 
this subsection. Any retirant employed by a participating employer or a 
third-party entity as provided in this subsection shall not make 
contributions nor receive additional credit under such system for such 
service except as provided by this section. Upon request of the 
executive director of the system, the secretary of revenue shall provide 
such information as may be needed by the executive director to carry 
out the provisions of this act. The provisions of this subsection shall not 
apply to retirants employed as substitute teachers without a contract or 
officers, employees or appointees of the legislature. The provisions of 
this subsection shall not apply to members of the legislature. The 
provisions of this subsection shall not apply to any other elected 
officials. Commencing July 1, 2005, the provisions of this subsection 
shall not apply to retirants who either retired under the provisions of 
subsection (1), or, if they retired under the provisions of subsection (4), 
were retired more than 30 days prior to the effective date of this act and 
are licensed professional nurses or licensed practical nurses employed 
by the state of Kansas in an institution as defined in K.S.A. 76-
12a01(b) or K.S.A. 38-2302(k), and amendments thereto, the Kansas 
soldiers' home or the Kansas veterans' home. Nothing in this subsection 
shall be construed to create any right, or to authorize the creation of any 
right, which is not subject to amendment or nullification by act of the 
legislature. The participating employer of such retirant shall pay to the 
system the actuarially determined employer contribution based on the 
retirant's compensation during any such period of employment. The 
provisions of the subsection shall expire on January 1, 2018.
(6) For purposes of this section, any employee of a local 
governmental unit which that has its own pension plan who becomes 
an employee of a participating employer as a result of a merger or 
consolidation of services provided by local governmental units, which 
that occurred on January 1, 1994, may count service with such local  HOUSE BILL No. 2711—page 7
governmental unit in determining whether such employee has met the 
years of credited service requirements contained in this section.
(7)(6) (a) (i) Except as provided in K.S.A. 74-4937(3), (4), or (5), 
and amendments thereto, and the provisions of this subsection, 
commencing July 1, 2016, and ending January 1, 2018, any retirant 
who is employed or appointed in or to any position by a participating 
employer, an independent contractor or a third-party entity who 
contracts services with a participating employer to fill a position, 
without any prearranged agreement with such participating employer 
and not prior to 60 days after such retirant's retirement date, shall not 
receive any retirement benefit for any month in any calendar year in 
which the retirant receives compensation in an amount equal to $25,000 
or more, pursuant to this subsection. Any participating employer who 
hires a retirant covered by this subsection shall pay to the system the 
statutorily prescribed employer contribution rate for such retirant, 
without regard to whether the retirant is receiving benefits.
(ii) Commencing January 1, 2018, for all retirements that occurred 
prior to such date, any retirant who is employed or appointed in or to 
any position by a participating employer, an independent contractor or 
a third-party entity who contracts services with a participating 
employer to fill a position, without any prearranged agreement with 
such participating employer and not prior to 60 days after such 
retirant's retirement date, shall not be subject to an earnings limitation 
that when met or exceeded requires that the retirant not receive a 
retirement benefit for any month for which such retirant serves in such 
position. If a retirant is employed in a covered position, as defined in 
K.S.A. 74-49,202, and amendments thereto, the participating employer 
of such retirant shall pay to the system the statutorily prescribed 
employer contribution rate on the first $25,000 $40,000 of such 
retirant's compensation in a calendar year and a 30% employer 
contribution on any compensation in excess of $25,000 $40,000 in a 
calendar year during any such period of employment. If a retirant is 
employed by more than one participating employer or performing 
duties in more than one position, contributions shall be made on 
compensation from all such employment for that calendar year. If a 
retirant is employed in a non-covered position, no employer 
contribution shall be paid to the system.
(b) The provisions of this subsection shall not apply, except as 
specifically provided in this subsection, to retirants who are:
(i) Licensed professional nurses or licensed practical nurses 
employed by the state of Kansas in an institution as defined in K.S.A. 
76-12a01(b) or 38-2302(k), and amendments thereto, the Kansas 
soldiers' home or the Kansas veterans' home. The participating 
employer of such retirant shall pay to the system the actuarially 
determined employer contribution based on the retirant's compensation 
and the statutorily prescribed employee contribution during any such 
period of employment;
(ii) employed by a school district in a position as provided in 
K.S.A. 74-4937(3), (4) or (5), and amendments thereto;
(iii) certified law enforcement officers employed by the law 
enforcement training center. Such law enforcement officers shall 
receive their benefits notwithstanding this subsection. The law 
enforcement training center shall pay to the system the actuarially 
determined employer contribution and the statutorily prescribed 
employee contribution based on the retirant's compensation during any 
such period of employment;
(iv) members of the Kansas police and firemen's retirement 
system pursuant to K.S.A. 74-4951 et seq., and amendments thereto, 
members of the retirement system for judges pursuant to K.S.A. 20-
2601 et seq., and amendments thereto, or members of the state board of 
regents retirement plan pursuant to K.S.A. 74-4925 et seq., and 
amendments thereto;
(v) employed as substitute teachers without a contract or officers, 
employees or appointees of the legislature; HOUSE BILL No. 2711—page 8
(vi) a poll worker hired to work an election day for a county 
election officer responsible for conducting all official elections held in 
the county;
(vii) employed by, or have accepted employment from, a 
participating employer prior to May 1, 2015. Any break in continuous 
employment by a retirant or move to a different position by a retirant 
during the effective period of this subsection shall be deemed new 
employment and shall subject the retirant to the provisions of this 
subsection. Commencing January 1, 2018, the participating employer 
of a retirant described in this subsection (7)(b)(vii) subparagraph who 
is employed in a covered position, as defined in K.S.A. 74-49,202, and 
amendments thereto, shall pay to the system the statutorily prescribed 
employer contribution rate on the first $25,000 $40,000 of such 
retirant's compensation in a calendar year and a 30% employer 
contribution on any compensation in excess of $25,000 $40,000 in a 
calendar year during any such period of employment. If a retirant is 
employed by more than one participating employer or performing 
duties in more than one position, contributions shall be made on 
compensation from all such employment for that calendar year. If a 
retirant is employed in a non-covered position, no employer 
contribution shall be paid to the system;
(viii) state or local elected officials. A retirant shall not be 
employed in an elected office within 30 days of such retirant's 
retirement, except that if a retirant is filling a vacant elected office, no 
waiting period shall be required; or
(ix) employed by the Kansas academies of the United States 
department of defense STARBASE program; or
(x) employed as a licensed professional nurse, licensed practical 
nurse or in a direct support position of an affiliated employer 
organized under K.S.A. 19-4001, and amendments thereto, or defined 
under K.S.A. 39-1803, and amendments thereto.
(c) The participating employer shall enroll all retirants, including 
retirants under subsection (7)(b)(i) (6)(b)(i), (ii), (iii), (vii) and (viii), 
and report to the system when compensation is paid to a retirant as 
provided in this subsection. Such report shall contain a certification by 
the appointing authority of the participating employer that any hired 
retirant has not been employed by the participating employer within 60 
days of such retirant's retirement and that there was no prearranged 
agreement for employment between the participating employer and the 
hired retirant. Upon request of the executive director of the system, the 
participating employer shall provide such information as may be 
needed by the executive director to carry out the provisions of this 
subsection. No retirant shall make contributions to the system or 
receive credit for service while employed under the provisions of this 
subsection.
(d) A participating employer may employ a retirant without regard 
to the compensation limitation in this subsection for a period of one 
calendar year or one school year, as the case may be, if the following 
requirements are met:
(i) The employer certifies to the board that the position being 
filled has been vacated due to an unexpected emergency or the 
employer has been unsuccessful in filling the position;
(ii) the employer pays to the system a 30% employer contribution 
based on the retirant's compensation during any such period of 
employment; and
(iii) the employer maintains documentation of its efforts to fill the 
position with a non-retirant and provides such documentation to the 
joint committee on pensions, investments and benefits upon request of 
the committee.
The provisions of this paragraph shall expire on January 1, 2018.
(e) An employer may submit a written assurance protocol to the 
system to extend the exception provided for in subsection (7)(d) by 
one-year increments for a total extension not to exceed three years. A 
written assurance protocol shall be submitted to the system for each  HOUSE BILL No. 2711—page 9
one-year increment extension. If a school district submits a written 
assurance protocol, such written assurance protocol shall be signed by 
the superintendent and the board president of such school district. If a 
municipality, as defined in K.S.A. 75-1117, and amendments thereto, 
other than a school district, submits a written assurance protocol, such 
written assurance protocol shall be signed by the governing body or 
such governing body's designee for such municipality. Such written 
assurance protocol shall state that the position was advertised on 
multiple platforms for a minimum of 30 calendar days and that at least 
one of the following conditions occurred:
(i) No applications were submitted for the position;
(ii) if applications were submitted, none of the applicants met the 
reference screening criteria of the employer; or
(iii) if applications were submitted, none of the applicants 
possessed the appropriate licensure, certification or other necessary 
credentials for the position.
The provisions of this paragraph shall expire on January 1, 2018.
(f) Retirants who are independent contractors or employees of 
third-party entities who contract with a participating employer, shall not 
be subject to the compensation limitation or employer contribution 
requirements in this subsection or the requirements of subsection (7)(c) 
paragraph (c) regarding enrollment and reporting to the system, so 
long as all of the following apply:
(A) The contractual relationship was not created to allow the 
retirant to continue employment with the participating employer after 
retirement in a position similar to the one such retirant held prior to 
retirement;
(B) the activities performed by the independent contractor or 
third-party entity are not normally performed exclusively by employees 
of that participating employer; and
(C) the retirant meets the classification of independent contractor 
as provided in K.S.A. 44-768, and amendments thereto, or activities 
performed by the third-party entity that employs the retirant are 
performed on a limited-term basis and the third-party entity is not a 
participating employer in the system.
(g)(e) Nothing in this subsection shall be construed to create any 
right, or to authorize the creation of any right, which is not subject to 
amendment or nullification by act of the legislature.
(8)(7) (a) Except as provided in subsection (8)(b) paragraph (b), if 
determined by the retirement system that a retirant entered into a 
prearranged agreement for employment with a participating employer 
prior to such retirant's retirement and prior to the end of the subsequent 
60-day waiting period, or the 180-day waiting period under subsection 
(10) (9), the monthly retirement benefit of such retirant shall be 
suspended during the period that begins on the month in which the 
retirant is re-employed and ends six months after the retirant's 
termination of such employment. The retirant shall repay to the 
retirement system all monthly retirement benefits paid to the retirant by 
the retirement system that the retirant received after such employment 
began. The participating employer which hired such retirant shall be 
required to pay to the system any fees, fines, penalties or any other cost 
imposed by the internal revenue service and indemnify the system for 
any cost incurred by the system to defend any action brought by the 
internal revenue service based on in-service distributions which are a 
result of any determined prearranged agreement and for any cost 
incurred by the system to collect any monthly retirement benefit 
required to be repaid by such retirant pursuant to this subsection.
(b) For members who retired on and after July 1, 2016, and on or 
before July 1, 2019, if determined by the retirement system that a 
retirant entered into a prearranged agreement for employment with a 
participating employer prior to such retirant's retirement date and the 
subsequent 60-day waiting period, or the 180-day waiting period under 
subsection (10) (9), and upon being notified of the violation, the retirant 
terminated such employment, the provisions of subsection paragraph  HOUSE BILL No. 2711—page 10
(a) shall not apply. If any retirant had benefits suspended prior to July 
1, 2019, such benefits shall be reimbursed by the retirement system, if 
the retirant terminated such prearranged employment in accordance 
with the provisions of this act. On and after July 1, 2019, the executive 
director may waive such penalties under this subsection if it is 
determined by the retirement system that any of the following 
conditions were satisfied:
(i) The retirant's total length of reemployment was less than 21 
calendar days;
(ii) the retirant's total compensation during the total length of 
reemployment was less than 10% of the amount of such retirant's 
retirement benefit that would be suspended pursuant to this subsection; 
or
(iii) other facts and circumstances indicated that the retirant would 
not have been reemployed but for an error on the part of the 
participating employer or the retirement system in verifying the 
retirement status of such retirant and such retirant immediately 
terminated employment upon being notified of the violation.
(c) On or before the first day of each regular session of the 
legislature, beginning with the 2020 regular session, the executive 
director shall submit an annual report on the number of waivers granted 
pursuant to subsection (8)(b) paragraph (b) in the prior calendar year 
to the joint committee on pensions, investments and benefits, the house 
of representatives standing committee on financial institutions and 
pensions and the senate standing committee on financial institutions 
and insurance, or the successors of such committees.
(9)(8) For the purposes of this section a prearranged agreement for 
employment may be determined by whether the facts and 
circumstances of the situation indicate that the employer and employee 
reasonably anticipated that further services would be performed after 
the employee's retirement.
(10)(9) (a) Notwithstanding the provisions of subsection (5) or (7) 
(6) to the contrary, commencing January 1, 2018, any retirant who is 
retired more than 60 days, if such retirant's age on the date of 
retirement is 62 or older, or is retired more than 180 days, if such 
retirant's age on the date of retirement is less than 62, and who is 
subsequently hired without any prearranged agreement with the 
participating employer in a covered position, as defined in K.S.A. 74-
49,202, and amendments thereto, or an independent contractor or a 
third-party entity who contracts service to fill such covered position 
shall not be subject to an earnings limitation that when met or exceeded 
requires that the retirant not receive a retirement benefit for any month 
for which such retirant serves in such covered position. The 
participating employer of such retirant shall pay to the system the 
statutorily prescribed employer contribution rate on the first $25,000 
$40,000 of such retirant's compensation in a calendar year and a 30% 
employer contribution on any compensation in excess of $25,000 
$40,000 in a calendar year during any such period of employment. If a 
retirant is employed by more than one participating employer or 
performing duties in more than one position, contributions shall be 
made on compensation from all such employment for that calendar 
year.
(b) Notwithstanding the provisions of subsection (5) or (7) (6) to 
the contrary, commencing January 1, 2018, any retirant who is retired 
more than 60 days, if such retirant's age on the date of retirement is 62 
or older, or is retired more than 180 days, if such retirant's age on the 
date of retirement is less than 62, and who is subsequently hired 
without any prearranged agreement with the participating employer in a 
non-covered position, or an independent contractor or a third-party 
entity who contracts service to fill such non-covered position, shall not 
be subject to an earnings limitation that when met or exceeded requires 
that the retirant not receive a retirement benefit for any month for 
which such retirant serves in such non-covered position. No employer 
contribution shall be paid to the system on compensation paid to a  HOUSE BILL No. 2711—page 11
retirant hired in a non-covered position.
(c) The participating employer shall enroll all retirants, including 
retirants under subsection (7)(b)(i) (6)(b)(i), (ii), (iii), (vii) and (viii), 
and report to the system when compensation is paid to a retirant as 
provided in this subsection. Such report shall contain a certification by 
the appointing authority of the participating employer that any hired 
retirant has not been employed by the participating employer within 60 
days of such retirant's retirement in the case of a retirant whose age on 
the date of retirement is 62 or older, or within 180 days of such 
retirant's retirement in the case of a retirant whose age on the date of 
retirement is less than 62, and that there was no prearranged agreement 
for employment between the participating employer and the hired 
retirant. Upon request of the executive director of the system, the 
participating employer shall provide such information as may be 
needed by the executive director to carry out the provisions of this 
subsection. No retirant shall make contributions to the system or 
receive credit for service while employed under the provisions of this 
subsection.
(d) The provisions of this subsection relating to an earnings 
limitation and employer contributions shall not apply to any retirant 
described in subsection (7)(b) (6)(b) or to retirants who are independent 
contractors or employees of third-party entities who contract with a 
participating employer as described in subsection (7)(f) (6)(d), except 
as specifically provided in this subsection.
(e) Nothing in this subsection shall be construed to create any 
right, or to authorize the creation of any right that is not subject to 
amendment or nullification by act of the legislature.
Sec. 10. K.S.A. 2023 Supp. 74-4921 is hereby amended to read as 
follows: 74-4921. (1) There is hereby created in the state treasury the 
Kansas public employees retirement fund. All employee and employer 
contributions shall be deposited in the state treasury to be credited to 
the Kansas public employees retirement fund. The fund is a trust fund 
and shall be used solely for the exclusive purpose of providing benefits 
to members and member beneficiaries and defraying reasonable 
expenses of administering the fund. Investment income of the fund 
shall be added or credited to the fund as provided by law. All benefits 
payable under the system, refund of contributions and overpayments, 
purchases or investments under the law and expenses in connection 
with the system unless otherwise provided by law shall be paid from 
the fund. The director of accounts and reports is authorized to draw 
warrants on the state treasurer and against such fund upon the filing in 
the director's office of proper vouchers executed by the chairperson or 
the executive director of the board. As an alternative, payments from 
the fund may be made by credits to the accounts of recipients of 
payments in banks, savings and loan associations and credit unions. A 
payment shall be so made only upon the written authorization and 
direction of the recipient of payment and upon receipt of such 
authorization such payments shall be made in accordance therewith. 
Orders for payment of such claims may be contained on:
(a) A letter, memorandum, telegram, computer printout or similar 
writing; or
(b) any form of communication, other than voice, which is 
registered upon magnetic tape, disc or any other medium designed to 
capture and contain in durable form conventional signals used for the 
electronic communication of messages.
(2) The board shall have the responsibility for the management of 
the fund and shall discharge the board's duties with respect to the fund 
solely in the interests of the members and beneficiaries of the system 
for the exclusive purpose of providing benefits to members and such 
member's beneficiaries and defraying reasonable expenses of 
administering the fund and shall invest and reinvest moneys in the fund 
and acquire, retain, manage, including the exercise of any voting rights 
and disposal of investments of the fund within the limitations and 
according to the powers, duties and purposes as prescribed by this  HOUSE BILL No. 2711—page 12
section.
(3) Moneys in the fund shall be invested and reinvested to achieve 
the investment objective which is preservation of the fund to provide 
benefits to members and member beneficiaries, as provided by law and 
accordingly providing that the moneys are as productive as possible, 
subject to the standards set forth in this act. No moneys in the fund 
shall be invested or reinvested if any investment objective is for 
economic development or social purposes or objectives.
(4) In investing and reinvesting moneys in the fund and in 
acquiring, retaining, managing and disposing of investments of the 
fund, the board shall exercise the judgment, care, skill, prudence and 
diligence under the circumstances then prevailing, which persons of 
prudence, discretion and intelligence acting in a like capacity and 
familiar with such matters would use in the conduct of an enterprise of 
like character and with like aims by diversifying the investments of the 
fund so as to minimize the risk of large losses, unless under the 
circumstances it is clearly prudent not to do so, and not in regard to 
speculation but in regard to the permanent disposition of similar funds, 
considering the probable income as well as the probable safety of their 
capital.
(5) Notwithstanding subsection (4):
(a) Total investments in common stock may be made in the 
amount of up to 60% of the total book value of the fund;
(b) the board may invest or reinvest moneys of the fund in 
alternative investments if the following conditions are satisfied:
(i) The total of the annual net commitment to alternative 
investments does not exceed 5% of the total market value of investment 
assets of the fund as measured from the end of the preceding calendar 
year;
(ii) if in addition to the system, there are at least two other 
qualified institutional buyers, as defined by section (a)(1)(i) of rule 
144A, securities act of 1933;
(iii) the system's share in any individual alternative investment is 
limited to an investment representing not more than 20% of any such 
individual alternative investment;
(iv) the system has received a favorable and appropriate 
recommendation from a qualified, independent expert in investment 
management or analysis in that particular type of alternative 
investment;
(v) the alternative investment is consistent with the system's 
investment policies and objectives as provided in subsection (6);
(vi) the individual alternative investment does not exceed more 
than 2.5% of the total alternative investments made under this 
subsection. If the alternative investment is made pursuant to 
participation by the system in a multi-investor pool, the 2.5% limitation 
contained in this subsection is applied to the underlying individual 
assets of such pool and not to investment in the pool itself. The total of 
such alternative investments made pursuant to participation by the 
system in any one individual multi-investor pool shall not exceed more 
than 20% of the total of alternative investments made by the system 
pursuant to this subsection. Nothing in this subsection requires the 
board to liquidate or sell the system's holdings in any alternative 
investments made pursuant to participation by the system in any one 
individual multi-investor pool held by the system on the effective date 
of this act, unless such liquidation or sale would be in the best interest 
of the members and beneficiaries of the system and be prudent under 
the standards contained in this section. The 20% limitation contained in 
this subsection shall not have been violated if the total of such 
investment in any one individual multi-investor pool exceeds 20% of 
the total alternative investments of the fund as a result of market forces 
acting to increase the value of such a multi-investor pool relative to the 
rest of the system's alternative investments; however, the board shall 
not invest or reinvest any moneys of the fund in any such individual 
multi-investor pool until the value of such individual multi-investor  HOUSE BILL No. 2711—page 13
pool is less than 20% of the total alternative investments of the fund;
(vii) the board has received and considered the investment 
manager's due diligence findings submitted to the board as required by 
subsection (6);
(viii) prior to the time the alternative investment is made, the 
system has in place procedures and systems to ensure that the 
investment is properly monitored and investment performance is 
accurately measured; and
(ix) the total of alternative investments does not exceed 15% 25% 
of the total investment assets of the fund. The 15% 25% limitation 
contained in this subsection shall not have been violated if the total of 
such alternative investments exceeds 15% 25% of the total investment 
assets of the fund, based on the fund total market value, as a result of 
market forces acting to increase the value of such alternative 
investments relative to the rest of the system's investments. However, 
the board shall not invest or reinvest any moneys of the fund in 
alternative investments until the total value of such alternative 
investments is less than 15% 25% of the total investment assets of the 
fund based on the market value. If the total value of the alternative 
investments exceeds 15% 25% of the total investment assets of the 
fund, the board shall not be required to liquidate or sell the system's 
holdings in any alternative investment held by the system, unless such 
liquidation or sale would be in the best interest of the members and 
beneficiaries of the system and is prudent under the standards contained 
in this section;
(c) for purposes of this section, "alternative investment" includes a 
broad group of investments that are not one of the traditional asset 
types of public equities, fixed income, cash or real estate. Alternative 
investments are generally made through limited partnership or similar 
structures, are not regularly traded on nationally recognized exchanges 
and thus are relatively illiquid, and exhibit lower correlations with more 
liquid asset types such as stocks and bonds. Alternative investments 
generally include, but are not limited to, private equity, private credit, 
hedge funds, infrastructure, commodities and other investments that 
have the characteristics described in this paragraph; and
(d) except as otherwise provided, the board may invest or reinvest 
moneys of the fund in real estate investments if the following 
conditions are satisfied:
(i) The system has received a favorable and appropriate 
recommendation from a qualified, independent expert in investment 
management or analysis in that particular type of real estate investment;
(ii) the real estate investment is consistent with the system's 
investment policies and objectives as provided in subsection (6); and
(iii) the system has received and considered the investment 
manager's due diligence findings.
(6) (a) Subject to the objective set forth in subsection (3) and the 
standards set forth in subsections (4) and (5) the board shall formulate 
policies and objectives for the investment and reinvestment of moneys 
in the fund and the acquisition, retention, management and disposition 
of investments of the fund. Such policies and objectives shall include:
(i) Specific asset allocation standards and objectives;
(ii) establishment of criteria for evaluating the risk versus the 
potential return on a particular investment;
(iii) a requirement that all investment managers submit such 
manager's due diligence findings on each investment to the board or 
investment advisory committee for approval or rejection prior to 
making any alternative investment;
(iv) a requirement that all investment managers shall immediately 
report all instances of default on investments to the board and provide 
the board with recommendations and options, including, but not limited 
to, curing the default or withdrawal from the investment; and
(v) establishment of criteria that would be used as a guideline for 
determining when no additional add-on investments or reinvestments 
would be made and when the investment would be liquidated. HOUSE BILL No. 2711—page 14
(b) The board shall review such policies and objectives, make 
changes considered necessary or desirable and readopt such policies 
and objectives on an annual basis.
(7) The board may enter into contracts with one or more persons 
whom the board determines to be qualified, whereby the persons 
undertake to perform the functions specified in subsection (2) to the 
extent provided in the contract. Performance of functions under 
contract so entered into shall be paid pursuant to rates fixed by the 
board subject to provisions of appropriation acts and shall be based on 
specific contractual fee arrangements. The system shall not pay or 
reimburse any expenses of persons contracted with pursuant to this 
subsection, except that after approval of the board, the system may pay 
approved investment related expenses subject to provisions of 
appropriation acts. The board shall require that a person contracted with 
to obtain commercial insurance which provides for errors and 
omissions coverage for such person in an amount to be specified by the 
board, provided that such coverage shall be at least the greater of 
$500,000 or 1% of the funds entrusted to such person up to a maximum 
of $10,000,000. The board shall require a person contracted with to 
give a fidelity bond in a penal sum as may be fixed by law or, if not so 
fixed, as may be fixed by the board, with corporate surety authorized to 
do business in this state. Such persons contracted with the board 
pursuant to this subsection and any persons contracted with such 
persons to perform the functions specified in subsection (2) shall be 
deemed to be agents of the board and the system in the performance of 
contractual obligations.
(8) (a) In the acquisition or disposition of securities, the board 
may rely on the written legal opinion of a reputable bond attorney or 
attorneys, the written opinion of the attorney of the investment 
counselor or managers, or the written opinion of the attorney general 
certifying the legality of the securities.
(b) The board shall employ or retain qualified investment counsel 
or counselors or may negotiate with a trust company to assist and 
advise in the judicious investment of funds as herein provided.
(9) (a) Except as provided in subsection (7) and this subsection, 
the custody of money and securities of the fund shall remain in the 
custody of the state treasurer, except that the board may arrange for the 
custody of such money and securities as it considers advisable with one 
or more member banks or trust companies of the federal reserve system 
or with one or more banks in the state of Kansas, or both, to be held in 
safekeeping by the banks or trust companies for the collection of the 
principal and interest or other income or of the proceeds of sale. The 
services provided by the banks or trust companies shall be paid 
pursuant to rates fixed by the board subject to provisions of 
appropriation acts.
(b) The state treasurer and the board shall collect the principal and 
interest or other income of investments or the proceeds of sale of 
securities in the custody of the state treasurer and pay same when so 
collected into the fund.
(c) The principal and interest or other income or the proceeds of 
sale of securities as provided in this subsection shall be reported to the 
state treasurer and the board and credited to the fund.
(10) The board shall with the advice of the director of accounts 
and reports establish the requirements and procedure for reporting any 
and all activity relating to investment functions provided for in this act 
in order to prepare a record monthly of the investment income and 
changes made during the preceding month. The record will reflect a 
detailed summary of investment, reinvestment, purchase, sale and 
exchange transactions and such other information as the board may 
consider advisable to reflect a true accounting of the investment 
activity of the fund.
(11) The board shall provide for an examination of the investment 
program annually. The examination shall include an evaluation of 
current investment policies and practices and of specific investments of  HOUSE BILL No. 2711—page 15
the fund in relation to the objective set forth in subsection (3), the 
standard set forth in subsection (4) and other criteria as may be 
appropriate, and recommendations relating to the fund investment 
policies and practices and to specific investments of the fund as are 
considered necessary or desirable. The board shall include in its annual 
report to the governor as provided in K.S.A. 74-4907, and amendments 
thereto, a report or a summary thereof covering the investments of the 
fund.
(12) Any internal assessment or examination of alternative 
investments of the system performed by any person or entity employed 
or retained by the board which evaluates or monitors the performance 
of alternative investments shall be reported to the legislative post 
auditor so that such report may be reviewed in accordance with the 
annual financial-compliance audits conducted pursuant to K.S.A. 74-
49,136, and amendments thereto.
Sec. 11. K.S.A. 74-4937 is hereby amended to read as follows: 74-
4937. (1) The normal retirement date of a member of the system who is 
in school employment and who is subject to K.S.A. 74-4940, and 
amendments thereto, shall be the first day of the month coinciding with 
or following termination of employment not followed by employment 
with any participating employer within 60 days, or 180 days as 
provided in K.S.A. 74-4914(10)(9), and amendments thereto, and 
without any prearranged agreement for employment with any 
participating employer, and the attainment of age 65 or, commencing 
July 1, 1986, age 65 or age 60 with the completion of 35 years of 
credited service or at any age with the completion of 40 years of 
credited service, or commencing July 1, 1993, any alternative normal 
retirement date already prescribed by law or age 62 with the completion 
of 10 years of credited service or the first day of the month coinciding 
with or following the date that the total of the number of years of 
credited service and the number of years of attained age of the member 
is equal to or more than 85. Each member upon giving prior notice to 
the appointing authority and the retirement system may retire on the 
normal retirement date or the first day of any month thereafter. Such 
member's application for retirement shall contain a certification by the 
member that the member will not be employed with any participating 
employer within 60 days, or 180 days as provided in K.S.A. 74-
4914(10)(9), and amendments thereto, of retirement and the member 
has not entered into a prearranged agreement for employment with any 
participating employer.
(2) Any member who is in school employment and who is subject 
to K.S.A. 74-4940, and amendments thereto, may retire before such 
member's normal retirement date on the first day of the month 
coinciding with or following termination of employment not followed 
by employment with any participating employer within 60 days, or 180 
days as provided in K.S.A. 74-4914(10)(9), and amendments thereto, 
and the attainment of age 55 with the completion of 10 years of 
credited service, upon the filing with the office of the retirement system 
of an application for retirement in such form and manner as the board 
shall prescribe. The member's application for retirement shall contain a 
certification by the member that the member will not be employed with 
any participating employer within 60 days, or 180 days as provided in 
K.S.A. 74-4914(10)(9), and amendments thereto, of retirement and the 
member has not entered into a prearranged agreement for employment 
with any participating employer.
(3) The provisions of K.S.A. 74-4914(5), (7) and (10)(6) and (9), 
and amendments thereto, which that relate to an earnings limitation 
which when met or exceeded requires that the retirant not receive a 
retirement benefit for any month for during which such retirant serves 
in a position as described herein shall not apply to retirants who either 
retired under the provisions of K.S.A. 74-4914(l), and amendments 
thereto, related to normal retirement, or, if they retired under the 
provisions of K.S.A. 74-4914(4), and amendments thereto, related to 
early retirement, and are subsequently hired in a position that requires a  HOUSE BILL No. 2711—page 16
license under K.S.A. 72-2157, and amendments thereto, or other 
provision of law. The provisions of this subsection shall only apply to 
retirants who retired prior to January 1, 2018. Except as otherwise 
provided, when a retirant is employed by the same school district or a 
different school district with which such retirant was employed during 
the final two years of such retirant's participation or employed as an 
independent contractor or by a third-party entity who contracts services 
with a school district to fill a position as described in this subsection, 
the participating employer of such retirant shall pay to the system the 
actuarially determined employer contribution based on the retirant's 
compensation during any such period of employment plus 8%. 
Commencing January 1, 2018, if a retirant is employed in a covered 
position, as defined in K.S.A. 74-49,202, and amendments thereto, the 
participating employer shall pay to the system the statutorily prescribed 
employer contribution rate on the first $25,000 $40,000 of such 
retirant's compensation in a calendar year and a 30% employer 
contribution on any compensation in excess of $25,000 $40,000 in a 
calendar year during any such period of employment. If a retirant is 
employed by more than one participating employer or performing 
duties in more than one position, contributions shall be made on 
compensation from all such employment for that calendar year. If a 
retirant is employed in a non-covered position, no employer 
contribution shall be paid to the system. The participating employer 
shall enroll all retirants and report to the system when compensation is 
paid to a retirant as provided in this subsection. Such notice shall 
contain a certification by the appointing authority of the participating 
employer that any hired retirant has not been employed by the 
participating employer within 60 days of such retirant's retirement and 
that there was no prearranged agreement for employment between the 
participating employer and the hired retirant. Upon request of the 
executive director of the system, the participating employer shall 
provide such information as may be needed by the executive director to 
carry out the provisions of this subsection. The provisions of this 
subsection shall not apply to retirants employed as substitute teachers 
without a contract. The provisions of K.S.A. 74-4914(5), and 
amendments thereto, shall be applicable to retirants employed as 
described in this subsection, except as specifically provided in this 
subsection. Nothing in this subsection shall be construed to create any 
right, or to authorize the creation of any right, which that is not subject 
to amendment or nullification by act of the legislature.
(4) (a) On and after July 1, 2016, a school district may hire a 
retired licensed professional to fill a special teacher position as defined 
in K.S.A. 72-3404, and amendments thereto, if such retirant is hired not 
prior to 60 days after such retirant's retirement date without any 
prearrangement with such school district in the manner prescribed in 
this subsection. The participating employer shall enroll all retirants and 
report to the system when compensation is paid to a retirant as provided 
in this subsection. Such notice shall contain a certification by the 
appointing authority of the participating employer that any hired 
retirant has not been employed by the participating employer within 60 
days of such retirant's retirement and that there was no prearranged 
agreement for employment between the participating employer and the 
hired retirant. Upon request of the executive director of the system, the 
participating employer shall provide such information as may be 
needed by the executive director to carry out the provisions of this 
subsection.
(b) A retirant hired under the provisions of this subsection may 
continue to receive such retirant's full retirement benefit for a period 
not to exceed three school years or 36 months, whichever is less, and 
shall not be subject to the provisions of K.S.A. 74-4914(5), and 
amendments thereto, which relate to a compensation limitation which 
when met or exceeded requires that the retirant not receive a retirement 
benefit for any month for which such retirant serves in a position as 
described herein. Such retirant may be employed by such employer for  HOUSE BILL No. 2711—page 17
some or all of a school year, and in subsequent school years if the 
employer is unable to permanently fill the position with active 
members, so long as the retirant's total term of employment with all 
employers under this subsection does not exceed 36 months or three 
school years, whichever is less. After such period, the retirant shall be 
subject to the provisions of K.S.A. 74-4914(7), and amendments 
thereto, which relate to a compensation limitation which when met or 
exceeded requires that the retirant not receive a retirement benefit for 
any month for which such retirant serves in a position as described 
herein. The participating employer of such retirant shall pay to the 
system a 30% employer contribution based on the retirant's 
compensation during any such period of employment. The provisions 
of this subsection shall not apply to retirants employed as substitute 
teachers without a contract. The provisions of K.S.A. 74-4914(5), and 
amendments thereto, shall be applicable to retirants employed as 
special teachers, except as specifically provided in this subsection.
(c) Each school district that uses the provisions of this subsection 
to hire retirants shall maintain documentation describing their 
recruiting efforts to obtain non-retirant employees to fill the special 
teacher positions. Upon request of the joint committee on pensions, 
investments and benefits, an employer shall provide such 
documentation to the committee. If the committee finds that an 
employer has not made sufficient efforts to hire a non-retirant for the 
position or if the committee finds evidence of prearrangement in 
violation of this section, the three-year exemption provided pursuant to 
this subsection may be revoked. The committee shall notify the 
executive director of the system that a retirant's exemption has been 
revoked within 30 days of making such a determination.
(d) An employer may submit a written assurance protocol to the 
system to make a one-time extension to the exception provided for in 
this subsection by one year. Such written assurance protocol shall be 
signed by the superintendent and the board president of the school 
district. Such written assurance protocol shall state that the position was 
advertised on multiple platforms for a minimum of 30 calendar days 
and that at least one of the following conditions occurred:
(i) No applications were submitted for the position;
(ii) if applications were submitted, none of the applicants met the 
reference screening criteria of the employer; or
(iii) if applications were submitted, none of the applicants 
possessed an appropriate teaching license for the state of Kansas or 
possessed the appropriate credentials to receive any type of teaching 
license from the state of Kansas.
(e) Nothing in this subsection shall be construed to create any 
right, or to authorize the creation of any right, which is not subject to 
amendment or nullification by act of the legislature.
(f) The provisions of this subsection shall expire on January 1, 
2018.
(5) (a) On and after July 1, 2016, a school district may hire a 
retired licensed professional to fill a non-special teacher position if 
such retirant is hired not prior to 60 days after such retirant's retirement 
date without any prearrangement with such school district, and if such 
school district hires a retirant for a hard-to-fill position in the manner 
prescribed in this subsection. The participating employer shall enroll all 
retirants and report to the system when compensation is paid to a 
retirant as provided in this subsection. Such notice shall contain a 
certification by the appointing authority of the participating employer 
that any hired retirant has not been employed by the participating 
employer within 60 days of such retirant's retirement and that there was 
no prearranged agreement for employment between the participating 
employer and the hired retirant. Upon request of the executive director 
of the system, the participating employer shall provide such 
information as may be needed by the executive director to carry out the 
provisions of this subsection.
(b) The state board of education shall annually certify the top five  HOUSE BILL No. 2711—page 18
types of licensed positions that are hard to fill. A school district may 
hire a retirant to fill a hard-to-fill position for some or all of a school 
year and in subsequent school years if the employer is unable to 
permanently fill the position with an active member. A retirant first 
hired under the provisions of this subsection may be retained by an 
employer even if such retirant's type of position is no longer one of the 
five types of positions certified by the state board of education. A 
retirant hired under the provisions of this subsection may continue to 
receive such retirant's full retirement benefit for a period not to exceed 
three school years or 36 months, whichever is less, and shall not be 
subject to the provisions of K.S.A. 74-4914(5), and amendments 
thereto, which relate to a compensation limitation which when met or 
exceeded requires that the retirant not receive a retirement benefit for 
any month for which such retirant serves in a position as described 
herein. Such retirant may be employed by such employer for some or 
all of a school year, and in subsequent school years if the employer is 
unable to permanently fill the position with active members, so long as 
the retirant's total term of employment with all employers under this 
subsection does not exceed 36 months or three school years, whichever 
is less. After such period, the retirant shall be subject to the provisions 
of K.S.A. 74-4914(7), and amendments thereto, which relate to a 
compensation limitation which when met or exceeded requires that the 
retirant not receive a retirement benefit for any month for which such 
retirant serves in a position as described herein. The participating 
employer of such retirant shall pay to the system a 30% employer 
contribution based on the retirant's compensation during any such 
period of employment. The provisions of this subsection shall not apply 
to retirants employed as substitute teachers without a contract. The 
provisions of K.S.A. 74-4914(5), and amendments thereto, shall be 
applicable to retirants employed as described in this subsection, except 
as specifically provided in this subsection.
(c) Each school district that uses the provisions of this subsection 
to hire retirants for hard-to-fill positions shall maintain documentation 
describing their recruiting efforts to obtain non-retirant employees to 
fill the hard-to-fill positions. Upon request of the joint committee on 
pensions, investments and benefits, a school district shall provide such 
documentation to the committee. If the committee finds that a school 
district has not made sufficient efforts to hire a non-retirant for the 
position or if the committee finds evidence of prearrangement in 
violation of this section, the three-year exemption provided pursuant to 
this subsection may be revoked. The committee shall notify the 
executive director of the system that a retirant's exemption has been 
revoked within 30 days of making such a determination.
(d) An employer may submit a written assurance protocol to the 
system to make a one-time extension to the exception provided for in 
this subsection by one year. Such written assurance protocol shall be 
signed by the superintendent and the board president of the school 
district. Such written assurance protocol shall state that the position was 
advertised on multiple platforms for a minimum of 30 calendar days 
and that at least one of the following conditions occurred:
(i) No applications were submitted for the position;
(ii) if applications were submitted, none of the applicants met the 
reference screening criteria of the employer; or
(iii) if applications were submitted, none of the applicants 
possessed an appropriate teaching license for the state of Kansas or 
possessed the appropriate credentials to receive any type of teaching 
license from the state of Kansas.
(e) Nothing in this subsection shall be construed to create any 
right, or to authorize the creation of any right, which is not subject to 
amendment or nullification by act of the legislature.
(f) The provisions of this subsection shall expire on January 1, 
2018.
(6)(4) The provisions of K.S.A. 74-4914(8)(7), and amendments 
thereto, shall apply to retirants under the provisions of this section. HOUSE BILL No. 2711—page 19
(7)(5) For the purposes of this section a prearranged agreement for 
employment may be determined by whether the facts and 
circumstances of the situation indicate that the employer and employee 
reasonably anticipated that further services would be performed after 
the employee's retirement.
Sec. 12. K.S.A. 74-4957 is hereby amended to read as follows: 74-
4957. (1) The normal retirement date for a member of the system who 
is appointed or employed prior to July 1, 1989, and who does not make 
an election pursuant to K.S.A. 74-4955a, and amendments thereto, shall 
be the first day of the month coinciding with or following termination 
of employment not followed by employment with any participating 
employer within 30 days, and the attainment of age 55 and the 
completion of 20 years of credited service or the completion of 32 
years of credited service regardless of the age of the member. Any 
member may retire on such member's normal retirement date or on the 
first day of any month thereafter.
(2) Early retirement. Any member who is appointed or employed 
prior to July 1, 1989, and who does not make an election pursuant to 
K.S.A. 74-4955a, and amendments thereto, may retire before such 
member's normal retirement date on the first day of any month 
coinciding with or following termination of employment not followed 
by employment with any participating employer within 30 days and the 
attainment of age 50 and the completion of 20 years of credited service.
(3) Notwithstanding the provisions of subsections (1) and (2) of 
this section and K.S.A. 74-4955a, 74-4957a, 74-4958a, 74-4960a, 74-
4963a and 74-4964a, and amendments thereto, the normal retirement 
date for any member who was, up to the entry date of such member's 
employer, covered by a pension system under the provisions of K.S.A. 
13-14a01 to through 13-14a14, inclusive, or 14-10a01 to through 14-
10a15, inclusive, and amendments thereto, shall be the first day of the 
month coinciding with or following the attainment of age 50 and the 
completion of 25 years of credited service.
(4) In no event shall a member be eligible to retire until such 
member has been a contributing member of the system for 12 months 
of participating service, and shall have given such member's employer 
prior notice of retirement.
(5) If a retirant who retired on or after July 1, 1994, is employed, 
elected or appointed in or to any position or office for which 
compensation for service is paid in an amount equal to $25,000 
$40,000 or more in any one such calendar year, by the same state 
agency or the same police or fire department of any county, city, 
township or special district or the same sheriff's office of a county 
during the final two years of such retirant's participation, such retirant 
shall not receive any retirement benefit for any month for which such 
retirant serves in such position or office. The participating employer 
shall report to the system within 30 days of when the compensation 
paid to the retirant is equal to or exceeds any limitation provided by this 
section. Any retirant employed by a participating employer in the 
Kansas police and firemen's retirement system shall not make 
contributions nor receive additional credit under such system for such 
service except as provided by this section. Upon request of the 
executive director of the system, the secretary of revenue shall provide 
such information as may be needed by the executive director to carry 
out the provisions of this act.
Sec. 13. K.S.A. 74-4957a is hereby amended to read as follows: 
74-4957a. (1) The normal retirement date for a member of the system 
who is appointed or employed on or after July 1, 1989, or who makes 
an election pursuant to K.S.A. 74-4955a, and amendments thereto, to 
be covered by the provisions of this act shall be the first day of the 
month coinciding with or following termination of employment not 
followed by employment with any participating employer within 30 
days and the attainment of age 55 and the completion of 20 years of 
credited service, age 50 and the completion of 25 years of credited 
service or age 60 with the completion of 15 years of credited service.  HOUSE BILL No. 2711—page 20
Any such member may retire on such member's normal retirement date 
or on the first day of any month thereafter.
(2) Any member may retire before such member's normal 
retirement date on the first day of any month coinciding with or 
following termination of employment not followed by employment 
with any participating employer within 30 days and the attainment of 
age 50 and the completion of 20 years of credited service.
(3) In no event shall a member be eligible to retire until such 
member has been a contributing member of the system for 12 months 
of participating service, and shall have given such member's employer 
prior notice of retirement.
(4) If a retirant who retired on or after July 1, 1996, is employed, 
elected or appointed in or to any position or office for which 
compensation for service is paid in an amount equal to $25,000 
$40,000 or more in any one such calendar year, by the same state 
agency or the same police or fire department of any county, city, 
township or special district or the same sheriff's office of a county 
during the final two years of such retirant's participation, such retirant 
shall not receive any retirement benefit for any month for which such 
retirant serves in such position or office. The participating employer 
shall report to the system within 30 days of when the compensation 
paid to the retirant is equal to or exceeds any limitation provided by this 
section. Any retirant employed by a participating employer in the 
Kansas police and firemen's retirement system shall not make 
contributions nor receive additional credit under such system for such 
service except as provided by this section. Upon request of the 
executive director of the system, the secretary of revenue shall provide 
such information as may be needed by the executive director to carry 
out the provisions of this act.
(5) The provisions of this section shall be effective on and after 
July 1, 1989, and shall apply only to members who were appointed or 
employed prior to July 1, 1989, and who made an election pursuant to 
K.S.A. 74-4955a, and amendments thereto; and persons appointed or 
employed on or after July 1, 1989.
Sec. 14. K.S.A. 74-4989 is hereby amended to read as follows: 74-
4989. (1) (a) Except as provided in paragraph (b), pursuant to the 
provisions of K.S.A. 74-49,128, and amendments thereto, upon the 
death of a retirant, the board of trustees of the Kansas public employees 
retirement system shall pay a lump-sum death benefit to: (i) The 
retirant's beneficiary which that shall not exceed $4,000 $6,000 for 
such retirant, less any amount payable for funeral benefits under the 
applicable provisions of any local police or fire pension plan, as 
defined by subsection (c) of K.S.A. 12-5001(c), and amendments 
thereto; or to (ii) a funeral establishment as directed by the retirant and 
filed in the office of the system prior to such retirant's death.
(b) Notwithstanding the provisions of K.S.A. 74-4923, and 
amendments thereto, any amounts owed the system shall be deducted 
from such lump-sum death benefit.
(2) As used in this section, "retirant" means any person who is a 
member or special member of the Kansas public employees retirement 
system, the Kansas police and firemen's retirement system, the state 
school retirement system or the retirement system for judges and who 
has retired.
Sec. 15. K.S.A. 74-49,315 is hereby amended to read as follows: 
74-49,315. A member's beneficiary shall be determined as provided in 
the pre-2015 plan. Upon filing a written application with the board after 
the death of a member receiving a benefit under subsections (a) or (b) 
of K.S.A. 74-49,313(a) or (b), and amendments thereto, the member's 
beneficiary is entitled to a $4,000 the lump-sum death benefit as 
provided in K.S.A. 74-4989, and amendments thereto. HOUSE BILL No. 2711—page 21
Sec. 16. K.S.A. 74-4937, 74-4957, 74-4957a, 74-4989 and 74-
49,315 and K.S.A. 2023 Supp. 74-4911, 74-4914 and 74-4921 are 
hereby repealed.
Sec. 17. This act shall take effect and be in force from and after its 
publication in the statute book.
I hereby certify that the above BILL originated in the HOUSE, and was 
adopted by that body
                                                                            
HOUSE adopted
Conference Committee Report                                                     
                                                                               
Speaker of the House.          
                                                                               
Chief Clerk of the House.     
Passed the SENATE
          as amended                                                      
SENATE adopted
Conference Committee Report                                                             
                                                                               
President of the Senate.       
                                                                               
Secretary of the Senate.       
APPROVED                                                                 
     
                                                                                                              
Governor.