Increasing the daily rate of compensation and eliminating the annualization of compensation in determining KPERS benefits and contributions for legislators first serving on or after January 13, 2025, and providing a compensation and KPERS benefits election for legislators with service prior to January 13, 2025.
Impact
The introduction of SB10 is expected to significantly impact state laws related to compensation structures for legislators. The increase in daily compensation aims to align the remuneration of legislators with contemporary standards, potentially incentivizing more individuals to consider serving in public office. The irrevocable election provision introduces flexibility for existing legislators, providing them the opportunity to select a method of compensation that may be more advantageous for their financial planning.
Summary
Senate Bill No. 10 aims to modify compensation and retirement benefits for legislators in Kansas. The bill increases the daily compensation rate for legislators first serving on or after January 13, 2025, to $320 per day for sessions. It eliminates the annualization of compensation when determining benefits and contributions under the Kansas Public Employees Retirement System (KPERS). Furthermore, it introduces a one-time irrevocable election for legislators who served before January 13, 2025, allowing them to choose their compensation calculation method moving forward.
Sentiment
Sentiment around SB10 appears to be mixed among stakeholders. Supporters argue it modernizes the compensation process and assists in retaining qualified individuals in legislative roles. Critics, however, express concerns regarding the financial implications for the state budget and whether such increases are justified in light of public sector funding challenges. The debate reflects broader discussions in Kansas about government accountability and fiscal responsibility.
Contention
One notable point of contention with SB10 is the elimination of annualization of compensation in calculating benefits, potentially impacting the retirement income of legislators. Critics argue this could erode long-term financial security for public officials. Additionally, the decision to increase daily compensation raises questions about the prioritization of governmental salaries against other pressing state needs, such as education and infrastructure funding.
Increasing the amount of retirant compensation subject to the statutory employer contribution rate to the first $50,000 of compensation earned by a retirant in a calendar year and for a period commencing July 1, 2023, and ending December 31, 2024, requiring participating employers to pay only the statutory employer contribution rate on all compensation of a retirant employed in a covered position.
Providing that all members of statutory boards or commissions who are authorized by statute to receive compensation shall receive the amount of per diem compensation paid to legislators.
Increasing the amount of retirant compensation subject to the statutory employer contribution rate to the first $40,000 earned by a retirant in a calendar year.
Legislative Retirement System; match benefit amounts payable to former and current retired legislators to benefits payable to legislators who were in office on or after January 1, 2022
Enacting the countries of concern divestment act, increasing the statutory alternative investment percentage limitation for the KPERS trust fund, increasing the amount of KPERS retirant compensation subject to the statutory employer contribution rate to the first $40,000 earned in a calendar year, providing a KPERS working after retirement exemption for retirants employed by a community developmental disability organization or a community service provider in a licensed professional nurse, licensed practical nurse or direct support position and increasing the working after retirement earnings limit for members of the Kansas police and firemen's retirement system.
Limiting current workers compensation benefit reductions that are based on the receipt of retirement benefits to reductions only to permanent disability compensation and only when retirement benefits begin after the accident.
Establishing a KPERS working after retirement exemption for retirants employed by a community developmental disability organization in a licensed professional nurse, licensed practical nurse or direct support position.
Providing a KPERS working after retirement exemption from the employer contribution rate for retirants who are employed as teachers by a school district in a position for which a certificate to teach is required.
Increasing the amount of retirant compensation subject to the statutory employer contribution rate to the first $40,000 earned by a retirant in a calendar year.
Enacting the countries of concern divestment act, increasing the statutory alternative investment percentage limitation for the KPERS trust fund, increasing the amount of KPERS retirant compensation subject to the statutory employer contribution rate to the first $40,000 earned in a calendar year, providing a KPERS working after retirement exemption for retirants employed by a community developmental disability organization or a community service provider in a licensed professional nurse, licensed practical nurse or direct support position and increasing the working after retirement earnings limit for members of the Kansas police and firemen's retirement system.
Increasing the amount of retirant compensation subject to the statutory employer contribution rate to the first $50,000 of compensation earned by a retirant in a calendar year and for a period commencing July 1, 2023, and ending December 31, 2024, requiring participating employers to pay only the statutory employer contribution rate on all compensation of a retirant employed in a covered position.
Reducing the waiting period for a KPERS retirant to return to work for a participating employer during a period beginning July 1, 2024, and ending July 1, 2029.