Kansas 2023-2024 Regular Session

Kansas Senate Bill SB256 Compare Versions

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Old	New	Differences
1	1	Session of 2023
2	2	SENATE BILL No. 256
3	3	By Committee on Ways and Means
4	4	2-15
5	5	AN ACT concerning retirement and pensions; relating to the Kansas public
6	6	employees retirement system; Kansas public employees retirement
7	7	system act of 2015; providing an additional interest credit of 1% and
8	8	removing the current additional interest credit calculation for calendar
9	9	year 2023; amending K.S.A. 74-49,306 and 74-49,308 and repealing
10	10	the existing sections.
11	11	Be it enacted by the Legislature of the State of Kansas:
12	12	Section 1. K.S.A. 74-49,306 is hereby amended to read as follows:
13	13	74-49,306. (a) A member's annuity savings account is the sum of the
14	14	member's mandatory contributions plus the interest credits on those
15	15	contributions, which shall be credited no less frequently than quarterly
16	16	based on the account balances as of the last day of the preceding quarter.
17	17	Effective January 1, 2015, The interest credits are 4% per annum. The
18	18	legislature may from time to time prospectively change the interest credits,
19	19	and expressly reserves the right to do so.
20	20	(b) The board shall provide for an annual additional interest credit.
21	21	The additional interest credit shall be posted to the member's annuity
22	22	savings account on March 31 or as soon thereafter as practicable, based on
23	23	the member's account value as of December 31 of the preceding year. The
24	24	additional interest credit shall be determined as follows:
25	25	(1) For the additional interest credit based on the member's annuity
26	26	savings account balance as of December 31, 2015, the dividend shall be
27	27	equal to 75% of the average net rate of return as determined by the board
28	28	for calendar year 2015 on the market value of the system's assets that is
29	29	above 6%, except that such additional interest credit shall not exceed
30	30	1.5%;
31	31	(2) for the additional interest credit based on the member's annuity
32	32	savings account balance as of December 31, 2016, the dividend shall be
33	33	equal to 75% of the average net rate of return as determined by the board
34	34	for calendar years 2015 and 2016 on the market value of the system's
35	35	assets that is above 6%, except that such additional interest credit shall not
36	36	exceed 1.5%;
37	37	(3) for the additional interest credit based on the member's annuity
38	38	savings account balance as of December 31, 2017, the dividend shall be
39	39	equal to 75% of the average net rate of return as determined by the board
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76	76	for calendar years 2015, 2016 and 2017 on the market value of the
77	77	system's assets that is above 6%, except that such additional interest credit
78	78	shall not exceed 1.5%;
79	79	(4) For the additional interest credit based on the member's annuity
80	80	savings account balance as of December 31, 2018 2023, the dividend shall
81	81	be equal to 75% of the average net rate of return as determined by the
82	82	board for calendar years 2015, 2016, 2017 and 2018 on the market value
83	83	of the system's assets that is above 6%, except that such additional interest
84	84	credit shall not exceed 1.5% 1%; and
85	85	(5)(2) for the additional interest credit based on the member's annuity
86	86	savings account balance as of December 31, 2019 2024, and all calendar
87	87	years thereafter, the dividend shall be equal to 75% of the five-year
88	88	average net compound rate of return as determined by the board for that
89	89	calendar year and the previous four calendar years on the market value of
90	90	the system's assets that is above 6%.
91	91	(c) The member's annuity savings account is vested from the date that
92	92	the employee becomes a member of the plan.
93	93	(d) Interest credits under subsections (a) and (b) shall not be granted
94	94	on the member's annuity savings account following the end of the second
95	95	plan year following the member's termination of employment under the
96	96	plan without vesting in the retirement annuity account as provided in
97	97	K.S.A. 74-49,312, and amendments thereto.
98	98	(e) For a member to be eligible for an additional interest credit, the
99	99	member shall have an account balance at the time the interest credit is
100	100	posted to the account.
101	101	Sec. 2. K.S.A. 74-49,308 is hereby amended to read as follows: 74-
102	102	49,308. (a) A member's retirement annuity account is the sum of all
103	103	employer credits to the account plus the interest credits on the account,
104	104	which shall be credited no less frequently than quarterly, based on the
105	105	account balances as of the last day of the preceding quarter. Effective
106	106	January 1, 2015, The interest credits are 4% per annum. The legislature
107	107	may from time to time prospectively change the interest credits, and
108	108	expressly reserves the right to do so.
109	109	(b) The board shall provide for an annual additional interest credit.
110	110	The additional interest credit shall be posted to the member's retirement
111	111	annuity account on March 31 or as soon as practicable, based on the
112	112	member's account value as of December 31 of the preceding year. The
113	113	additional interest credit shall be determined as follows:
114	114	(1) For the annual additional interest credit based on the member's
115	115	retirement annuity account balance as of December 31, 2015, the dividend
116	116	shall be equal to 75% of the average net rate of return as determined by the
117	117	board for calendar year 2015 on the market value of the system's assets
118	118	that is above 6%, except that such additional interest credit shall not
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162	162	exceed 1.5%;
163	163	(2) for the annual additional interest credit based on the member's
164	164	retirement annuity account balance as of December 31, 2016, the dividend
165	165	shall be equal to 75% of the average net rate of return as determined by the
166	166	board for calendar years 2015 and 2016 on the market value of the
167	167	system's assets that is above 6%, except that such additional interest credit
168	168	shall not exceed 1.5%;
169	169	(3) for the additional interest credit based on the member's retirement
170	170	annuity account balance as of December 31, 2017, the dividend shall be
171	171	equal to 75% of the average net rate of return as determined by the board
172	172	for calendar years 2015, 2016 and 2017 on the market value of the
173	173	system's assets that is above 6%, except that such additional interest credit
174	174	shall not exceed 1.5%;
175	175	(4) For the additional interest credit based on the member's retirement
176	176	annuity account balance as of December 31, 2018 2023, the dividend shall
177	177	be equal to 75% of the average net rate of return as determined by the
178	178	board for calendar years 2015, 2016, 2017 and 2018 on the market value
179	179	of the system's assets that is above 6%, except that such additional interest
180	180	credit shall not exceed 1.5% 1%; and
181	181	(5)(2) for the additional interest credit based on the member's
182	182	retirement annuity account balance as of December 31, 2019 2024, and all
183	183	calendar years thereafter, the dividend shall be equal to 75% of the five-
184	184	year average net compound rate of return as determined by the board for
185	185	that calendar year and the previous four calendar years on the market value
186	186	of the system's assets that is above 6%.
187	187	(c) For a member to be eligible for an additional interest credit, the
188	188	member shall have an account balance at the time the interest credit is
189	189	posted to the account.
190	190	(d) Interest credits under subsections (a) and (b) shall not be granted
191	191	on the member's non-vested retirement annuity account following the end
192	192	of the second plan year following the member's termination of
193	193	employment covered under the plan.
194	194	Sec. 3. K.S.A. 74-49,306 and 74-49,308 are hereby repealed.
195	195	Sec. 4. This act shall take effect and be in force from and after its
196	196	publication in the statute book.
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