Kansas 2023-2024 Regular Session

Kansas Senate Bill SB388 Compare Versions

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Old	New	Differences
1	1	Session of 2024
2	2	SENATE BILL No. 388
3	3	By Committee on Financial Institutions and Insurance
4	4	1-24
5	5	AN ACT concerning retirement and pensions; relating to the Kansas public
6	6	employees retirement system; employment after retirement; increasing
7	7	the amount of retirant compensation subject to the statutory employer
8	8	contribution rate; amending K.S.A. 74-4937 and K.S.A. 2023 Supp. 74-
9	9	4914 and repealing the existing sections.
10	10	Be it enacted by the Legislature of the State of Kansas:
11	11	Section 1. K.S.A. 2023 Supp. 74-4914 is hereby amended to read as
12	12	follows: 74-4914.(1) The normal retirement date for a member of the
13	13	system shall be the first day of the month coinciding with or following
14	14	termination of employment with any participating employer not followed
15	15	by employment with any participating employer within 60 days, or 180
16	16	days as provided in subsection (10) (9), and without any prearranged
17	17	agreement for employment with any participating employer, and the
18	18	attainment of age 65 or, commencing July 1, 1993, age 62 with the
19	19	completion of 10 years of credited service or the first day of the month
20	20	coinciding with or following the date that the total of the number of years
21	21	of credited service and the number of years of attained age of the member
22	22	is equal to or more than 85. In no event shall a normal retirement date for a
23	23	member be before six months after the entry date of the participating
24	24	employer by whom such member is employed. A member may retire on
25	25	the normal retirement date or on the first day of any month thereafter upon
26	26	the filing with the office of the retirement system of an application in such
27	27	form and manner as the board shall prescribe. Such application shall
28	28	contain a certification by the member that the member will not be
29	29	employed with any participating employer within 60 days, or 180 days as
30	30	provided in subsection (10) (9), of retirement and the member has not
31	31	entered into a prearranged agreement for employment with any
32	32	participating employer. Nothing herein shall prevent any person, member
33	33	or retirant from being employed, appointed or elected as an employee,
34	34	appointee, officer or member of the legislature. Elected officers may retire
35	35	from the system on any date on or after the attainment of the normal
36	36	retirement date, but no retirement benefits payable under this act shall be
37	37	paid until the member has terminated such member's office.
38	38	(2) No retirant shall make contributions to the system or receive
39	39	service credit for any service after the date of retirement.
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76	76	(3) Any member who is an employee of an affiliating employer
77	77	pursuant to K.S.A. 74-4954b, and amendments thereto, and has not
78	78	withdrawn such member's accumulated contributions from the Kansas
79	79	police and firemen's retirement system may retire before such member's
80	80	normal retirement date on the first day of any month coinciding with or
81	81	following the attainment of age 55.
82	82	(4) Any member may retire before such member's normal retirement
83	83	date on the first day of any month coinciding with or following
84	84	termination of employment with any participating employer not followed
85	85	by employment with any participating employer within 60 days, or 180
86	86	days as provided in subsection (10) (9), and the attainment of age 55 with
87	87	the completion of 10 years of credited service, but in no event before six
88	88	months after the entry date, upon the filing with the office of the retirement
89	89	system of an application for retirement in such form and manner as the
90	90	board shall prescribe. The member's application for retirement shall
91	91	contain a certification by the member that the member will not be
92	92	employed with any participating employer within 60 days, or 180 days as
93	93	provided in subsection (10) (9), of retirement and the member has not
94	94	entered into a prearranged agreement for employment with any
95	95	participating employer.
96	96	(5) Except as provided in subsections (7) and (10), on or after July 1,
97	97	2006, through December 31, 2017, for any retirant who is first employed
98	98	or appointed in or to any position or office by a participating employer
99	99	other than a participating employer for which such retirant was employed
100	100	or appointed during the final two years of such retirant's participation, and,
101	101	on or after April 1, 2009, for any retirant who is employed by a third-party
102	102	entity who contracts services with a participating employer other than a
103	103	participating employer for which such retirant was employed or appointed
104	104	during the final two years of such retirant's participation to fill a position
105	105	covered under K.S.A. 72-2215(a), and amendments thereto, with such
106	106	retirant, such participating employer shall pay to the system the actuarially
107	107	determined employer contribution and the statutorily prescribed employee
108	108	contribution based on the retirant's compensation during any such period
109	109	of employment or appointment. If a retirant is employed or appointed in or
110	110	to any position or office for which compensation for service is paid in an
111	111	amount equal to $25,000 or more in any one calendar year between July 1,
112	112	2016, and January 1, 2018, by any participating employer for which such
113	113	retirant was employed or appointed during the final two years of such
114	114	retirant's participation, and, on or after April 1, 2009, by any third-party
115	115	entity who contracts services to fill a position covered under K.S.A. 72-
116	116	2215(a), and amendments thereto, with such retirant with a participating
117	117	employer for which such retirant was employed or appointed during the
118	118	final two years of such retirant's participation, such retirant shall not
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162	162	receive any retirement benefit for any month for which such retirant serves
163	163	in such position or office. The participating employer who employs such
164	164	retirant whether by contract directly with the retirant or through an
165	165	arrangement with a third-party entity shall report to the system within 30
166	166	days of when the compensation paid to the retirant is equal to or exceeds
167	167	any limitation provided by this section. Any participating employer who
168	168	contracts services with any such third-party entity to fill a position covered
169	169	under K.S.A. 72-2215(a), and amendments thereto, shall include in such
170	170	contract a provision or condition which requires the third-party entity to
171	171	provide the participating employer with the necessary compensation paid
172	172	information related to any such position filled by the third-party entity
173	173	with a retirant to enable the participating employer to comply with
174	174	provisions of this subsection relating to the payment of contributions and
175	175	reporting requirements. The provisions and requirements provided for in
176	176	amendments made in this act which relate to positions filled with a retirant
177	177	or employment of a retirant by a third-party entity shall not apply to any
178	178	contract for services entered into prior to April 1, 2009, between a
179	179	participating employer and third-party entity as described in this
180	180	subsection. Any retirant employed by a participating employer or a third-
181	181	party entity as provided in this subsection shall not make contributions nor
182	182	receive additional credit under such system for such service except as
183	183	provided by this section. Upon request of the executive director of the
184	184	system, the secretary of revenue shall provide such information as may be
185	185	needed by the executive director to carry out the provisions of this act. The
186	186	provisions of this subsection shall not apply to retirants employed as
187	187	substitute teachers without a contract or officers, employees or appointees
188	188	of the legislature. The provisions of this subsection shall not apply to
189	189	members of the legislature. The provisions of this subsection shall not
190	190	apply to any other elected officials. Commencing July 1, 2005, the
191	191	provisions of this subsection shall not apply to retirants who either retired
192	192	under the provisions of subsection (1), or, if they retired under the
193	193	provisions of subsection (4), were retired more than 30 days prior to the
194	194	effective date of this act and are licensed professional nurses or licensed
195	195	practical nurses employed by the state of Kansas in an institution as
196	196	defined in K.S.A. 76-12a01(b) or K.S.A. 38-2302(k), and amendments
197	197	thereto, the Kansas soldiers' home or the Kansas veterans' home. Nothing
198	198	in this subsection shall be construed to create any right, or to authorize the
199	199	creation of any right, which is not subject to amendment or nullification by
200	200	act of the legislature. The participating employer of such retirant shall pay
201	201	to the system the actuarially determined employer contribution based on
202	202	the retirant's compensation during any such period of employment. The
203	203	provisions of the subsection shall expire on January 1, 2018.
204	204	(6) For purposes of this section, any employee of a local
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248	248	governmental unit which that has its own pension plan who becomes an
249	249	employee of a participating employer as a result of a merger or
250	250	consolidation of services provided by local governmental units, which that
251	251	occurred on January 1, 1994, may count service with such local
252	252	governmental unit in determining whether such employee has met the
253	253	years of credited service requirements contained in this section.
254	254	(7)(6) (a) (i) Except as provided in K.S.A. 74-4937(3), (4), or (5), and
255	255	amendments thereto, and the provisions of this subsection, commencing
256	256	July 1, 2016, and ending January 1, 2018, any retirant who is employed or
257	257	appointed in or to any position by a participating employer, an independent
258	258	contractor or a third-party entity who contracts services with a
259	259	participating employer to fill a position, without any prearranged
260	260	agreement with such participating employer and not prior to 60 days after
261	261	such retirant's retirement date, shall not receive any retirement benefit for
262	262	any month in any calendar year in which the retirant receives
263	263	compensation in an amount equal to $25,000 or more, pursuant to this
264	264	subsection. Any participating employer who hires a retirant covered by this
265	265	subsection shall pay to the system the statutorily prescribed employer
266	266	contribution rate for such retirant, without regard to whether the retirant is
267	267	receiving benefits.
268	268	(ii) Commencing January 1, 2018, for all retirements that occurred
269	269	prior to such date, any retirant who is employed or appointed in or to any
270	270	position by a participating employer, an independent contractor or a third-
271	271	party entity who contracts services with a participating employer to fill a
272	272	position, without any prearranged agreement with such participating
273	273	employer and not prior to 60 days after such retirant's retirement date, shall
274	274	not be subject to an earnings limitation that when met or exceeded requires
275	275	that the retirant not receive a retirement benefit for any month for which
276	276	such retirant serves in such position. If a retirant is employed in a covered
277	277	position, as defined in K.S.A. 74-49,202, and amendments thereto, the
278	278	participating employer of such retirant shall pay to the system the
279	279	statutorily prescribed employer contribution rate on the first $25,000
280	280	$40,000 of such retirant's compensation in a calendar year and a 30%
281	281	employer contribution on any compensation in excess of $25,000 $40,000
282	282	in a calendar year during any such period of employment. If a retirant is
283	283	employed by more than one participating employer or performing duties in
284	284	more than one position, contributions shall be made on compensation from
285	285	all such employment for that calendar year. If a retirant is employed in a
286	286	non-covered position, no employer contribution shall be paid to the
287	287	system.
288	288	(b) The provisions of this subsection shall not apply, except as
289	289	specifically provided in this subsection, to retirants who are:
290	290	(i) Licensed professional nurses or licensed practical nurses
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334	334	employed by the state of Kansas in an institution as defined in K.S.A. 76-
335	335	12a01(b) or 38-2302(k), and amendments thereto, the Kansas soldiers'
336	336	home or the Kansas veterans' home. The participating employer of such
337	337	retirant shall pay to the system the actuarially determined employer
338	338	contribution based on the retirant's compensation and the statutorily
339	339	prescribed employee contribution during any such period of employment;
340	340	(ii) employed by a school district in a position as provided in K.S.A.
341	341	74-4937(3), (4) or (5), and amendments thereto;
342	342	(iii) certified law enforcement officers employed by the law
343	343	enforcement training center. Such law enforcement officers shall receive
344	344	their benefits notwithstanding this subsection. The law enforcement
345	345	training center shall pay to the system the actuarially determined employer
346	346	contribution and the statutorily prescribed employee contribution based on
347	347	the retirant's compensation during any such period of employment;
348	348	(iv) members of the Kansas police and firemen's retirement system
349	349	pursuant to K.S.A. 74-4951 et seq., and amendments thereto, members of
350	350	the retirement system for judges pursuant to K.S.A. 20-2601 et seq., and
351	351	amendments thereto, or members of the state board of regents retirement
352	352	plan pursuant to K.S.A. 74-4925 et seq., and amendments thereto;
353	353	(v) employed as substitute teachers without a contract or officers,
354	354	employees or appointees of the legislature;
355	355	(vi) a poll worker hired to work an election day for a county election
356	356	officer responsible for conducting all official elections held in the county;
357	357	(vii) employed by, or have accepted employment from, a participating
358	358	employer prior to May 1, 2015. Any break in continuous employment by a
359	359	retirant or move to a different position by a retirant during the effective
360	360	period of this subsection shall be deemed new employment and shall
361	361	subject the retirant to the provisions of this subsection. Commencing
362	362	January 1, 2018, the participating employer of a retirant described in this
363	363	subsection (7)(b)(vii) subparagraph who is employed in a covered
364	364	position, as defined in K.S.A. 74-49,202, and amendments thereto, shall
365	365	pay to the system the statutorily prescribed employer contribution rate on
366	366	the first $25,000 $40,000 of such retirant's compensation in a calendar year
367	367	and a 30% employer contribution on any compensation in excess of
368	368	$25,000 $40,000 in a calendar year during any such period of
369	369	employment. If a retirant is employed by more than one participating
370	370	employer or performing duties in more than one position, contributions
371	371	shall be made on compensation from all such employment for that
372	372	calendar year. If a retirant is employed in a non-covered position, no
373	373	employer contribution shall be paid to the system;
374	374	(viii) state or local elected officials. A retirant shall not be employed
375	375	in an elected office within 30 days of such retirant's retirement, except that
376	376	if a retirant is filling a vacant elected office, no waiting period shall be
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420	420	required; or
421	421	(ix) employed by the Kansas academies of the United States
422	422	department of defense STARBASE program.
423	423	(c) The participating employer shall enroll all retirants, including
424	424	retirants under subsection (7)(b)(i) (6)(b)(i), (ii), (iii), (vii) and (viii), and
425	425	report to the system when compensation is paid to a retirant as provided in
426	426	this subsection. Such report shall contain a certification by the appointing
427	427	authority of the participating employer that any hired retirant has not been
428	428	employed by the participating employer within 60 days of such retirant's
429	429	retirement and that there was no prearranged agreement for employment
430	430	between the participating employer and the hired retirant. Upon request of
431	431	the executive director of the system, the participating employer shall
432	432	provide such information as may be needed by the executive director to
433	433	carry out the provisions of this subsection. No retirant shall make
434	434	contributions to the system or receive credit for service while employed
435	435	under the provisions of this subsection.
436	436	(d) A participating employer may employ a retirant without regard to
437	437	the compensation limitation in this subsection for a period of one calendar
438	438	year or one school year, as the case may be, if the following requirements
439	439	are met:
440	440	(i) The employer certifies to the board that the position being filled
441	441	has been vacated due to an unexpected emergency or the employer has
442	442	been unsuccessful in filling the position;
443	443	(ii) the employer pays to the system a 30% employer contribution
444	444	based on the retirant's compensation during any such period of
445	445	employment; and
446	446	(iii) the employer maintains documentation of its efforts to fill the
447	447	position with a non-retirant and provides such documentation to the joint
448	448	committee on pensions, investments and benefits upon request of the
449	449	committee.
450	450	The provisions of this paragraph shall expire on January 1, 2018.
451	451	(e) An employer may submit a written assurance protocol to the
452	452	system to extend the exception provided for in subsection (7)(d) by one-
453	453	year increments for a total extension not to exceed three years. A written
454	454	assurance protocol shall be submitted to the system for each one-year
455	455	increment extension. If a school district submits a written assurance
456	456	protocol, such written assurance protocol shall be signed by the
457	457	superintendent and the board president of such school district. If a
458	458	municipality, as defined in K.S.A. 75-1117, and amendments thereto, other
459	459	than a school district, submits a written assurance protocol, such written
460	460	assurance protocol shall be signed by the governing body or such
461	461	governing body's designee for such municipality. Such written assurance
462	462	protocol shall state that the position was advertised on multiple platforms
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506	506	for a minimum of 30 calendar days and that at least one of the following
507	507	conditions occurred:
508	508	(i) No applications were submitted for the position;
509	509	(ii) if applications were submitted, none of the applicants met the
510	510	reference screening criteria of the employer; or
511	511	(iii) if applications were submitted, none of the applicants possessed
512	512	the appropriate licensure, certification or other necessary credentials for
513	513	the position.
514	514	The provisions of this paragraph shall expire on January 1, 2018.
515	515	(f) Retirants who are independent contractors or employees of third-
516	516	party entities who contract with a participating employer, shall not be
517	517	subject to the compensation limitation or employer contribution
518	518	requirements in this subsection or the requirements of subsection (7)(c)
519	519	paragraph (c) regarding enrollment and reporting to the system, so long as
520	520	all of the following apply:
521	521	(A) The contractual relationship was not created to allow the retirant
522	522	to continue employment with the participating employer after retirement in
523	523	a position similar to the one such retirant held prior to retirement;
524	524	(B) the activities performed by the independent contractor or third-
525	525	party entity are not normally performed exclusively by employees of that
526	526	participating employer; and
527	527	(C) the retirant meets the classification of independent contractor as
528	528	provided in K.S.A. 44-768, and amendments thereto, or activities
529	529	performed by the third-party entity that employs the retirant are performed
530	530	on a limited-term basis and the third-party entity is not a participating
531	531	employer in the system.
532	532	(g)(e) Nothing in this subsection shall be construed to create any
533	533	right, or to authorize the creation of any right, which is not subject to
534	534	amendment or nullification by act of the legislature.
535	535	(8)(7) (a) Except as provided in subsection (8)(b) paragraph (b), if
536	536	determined by the retirement system that a retirant entered into a
537	537	prearranged agreement for employment with a participating employer
538	538	prior to such retirant's retirement and prior to the end of the subsequent 60-
539	539	day waiting period, or the 180-day waiting period under subsection (10)
540	540	(9), the monthly retirement benefit of such retirant shall be suspended
541	541	during the period that begins on the month in which the retirant is re-
542	542	employed and ends six months after the retirant's termination of such
543	543	employment. The retirant shall repay to the retirement system all monthly
544	544	retirement benefits paid to the retirant by the retirement system that the
545	545	retirant received after such employment began. The participating employer
546	546	which hired such retirant shall be required to pay to the system any fees,
547	547	fines, penalties or any other cost imposed by the internal revenue service
548	548	and indemnify the system for any cost incurred by the system to defend
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592	592	any action brought by the internal revenue service based on in-service
593	593	distributions which are a result of any determined prearranged agreement
594	594	and for any cost incurred by the system to collect any monthly retirement
595	595	benefit required to be repaid by such retirant pursuant to this subsection.
596	596	(b) For members who retired on and after July 1, 2016, and on or
597	597	before July 1, 2019, if determined by the retirement system that a retirant
598	598	entered into a prearranged agreement for employment with a participating
599	599	employer prior to such retirant's retirement date and the subsequent 60-day
600	600	waiting period, or the 180-day waiting period under subsection (10) (9),
601	601	and upon being notified of the violation, the retirant terminated such
602	602	employment, the provisions of subsection paragraph (a) shall not apply. If
603	603	any retirant had benefits suspended prior to July 1, 2019, such benefits
604	604	shall be reimbursed by the retirement system, if the retirant terminated
605	605	such prearranged employment in accordance with the provisions of this
606	606	act. On and after July 1, 2019, the executive director may waive such
607	607	penalties under this subsection if it is determined by the retirement system
608	608	that any of the following conditions were satisfied:
609	609	(i) The retirant's total length of reemployment was less than 21
610	610	calendar days;
611	611	(ii) the retirant's total compensation during the total length of
612	612	reemployment was less than 10% of the amount of such retirant's
613	613	retirement benefit that would be suspended pursuant to this subsection; or
614	614	(iii) other facts and circumstances indicated that the retirant would
615	615	not have been reemployed but for an error on the part of the participating
616	616	employer or the retirement system in verifying the retirement status of
617	617	such retirant and such retirant immediately terminated employment upon
618	618	being notified of the violation.
619	619	(c) On or before the first day of each regular session of the
620	620	legislature, beginning with the 2020 regular session, the executive director
621	621	shall submit an annual report on the number of waivers granted pursuant to
622	622	subsection (8)(b) paragraph (b) in the prior calendar year to the joint
623	623	committee on pensions, investments and benefits, the house of
624	624	representatives standing committee on financial institutions and pensions
625	625	and the senate standing committee on financial institutions and insurance,
626	626	or the successors of such committees.
627	627	(9)(8) For the purposes of this section a prearranged agreement for
628	628	employment may be determined by whether the facts and circumstances of
629	629	the situation indicate that the employer and employee reasonably
630	630	anticipated that further services would be performed after the employee's
631	631	retirement.
632	632	(10)(9) (a) Notwithstanding the provisions of subsection (5) or (7) (6)
633	633	to the contrary, commencing January 1, 2018, any retirant who is retired
634	634	more than 60 days, if such retirant's age on the date of retirement is 62 or
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678	678	older, or is retired more than 180 days, if such retirant's age on the date of
679	679	retirement is less than 62, and who is subsequently hired without any
680	680	prearranged agreement with the participating employer in a covered
681	681	position, as defined in K.S.A. 74-49,202, and amendments thereto, or an
682	682	independent contractor or a third-party entity who contracts service to fill
683	683	such covered position shall not be subject to an earnings limitation that
684	684	when met or exceeded requires that the retirant not receive a retirement
685	685	benefit for any month for which such retirant serves in such covered
686	686	position. The participating employer of such retirant shall pay to the
687	687	system the statutorily prescribed employer contribution rate on the first
688	688	$25,000 $40,000 of such retirant's compensation in a calendar year and a
689	689	30% employer contribution on any compensation in excess of $25,000
690	690	$40,000 in a calendar year during any such period of employment. If a
691	691	retirant is employed by more than one participating employer or
692	692	performing duties in more than one position, contributions shall be made
693	693	on compensation from all such employment for that calendar year.
694	694	(b) Notwithstanding the provisions of subsection (5) or (7) (6) to the
695	695	contrary, commencing January 1, 2018, any retirant who is retired more
696	696	than 60 days, if such retirant's age on the date of retirement is 62 or older,
697	697	or is retired more than 180 days, if such retirant's age on the date of
698	698	retirement is less than 62, and who is subsequently hired without any
699	699	prearranged agreement with the participating employer in a non-covered
700	700	position, or an independent contractor or a third-party entity who contracts
701	701	service to fill such non-covered position, shall not be subject to an
702	702	earnings limitation that when met or exceeded requires that the retirant not
703	703	receive a retirement benefit for any month for which such retirant serves in
704	704	such non-covered position. No employer contribution shall be paid to the
705	705	system on compensation paid to a retirant hired in a non-covered position.
706	706	(c) The participating employer shall enroll all retirants, including
707	707	retirants under subsection (7)(b)(i) (6)(b)(i), (ii), (iii), (vii) and (viii), and
708	708	report to the system when compensation is paid to a retirant as provided in
709	709	this subsection. Such report shall contain a certification by the appointing
710	710	authority of the participating employer that any hired retirant has not been
711	711	employed by the participating employer within 60 days of such retirant's
712	712	retirement in the case of a retirant whose age on the date of retirement is
713	713	62 or older, or within 180 days of such retirant's retirement in the case of a
714	714	retirant whose age on the date of retirement is less than 62, and that there
715	715	was no prearranged agreement for employment between the participating
716	716	employer and the hired retirant. Upon request of the executive director of
717	717	the system, the participating employer shall provide such information as
718	718	may be needed by the executive director to carry out the provisions of this
719	719	subsection. No retirant shall make contributions to the system or receive
720	720	credit for service while employed under the provisions of this subsection.
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764	764	(d) The provisions of this subsection relating to an earnings limitation
765	765	and employer contributions shall not apply to any retirant described in
766	766	subsection (7)(b) (6)(b) or to retirants who are independent contractors or
767	767	employees of third-party entities who contract with a participating
768	768	employer as described in subsection (7)(f) (6)(d), except as specifically
769	769	provided in this subsection.
770	770	(e) Nothing in this subsection shall be construed to create any right,
771	771	or to authorize the creation of any right that is not subject to amendment or
772	772	nullification by act of the legislature.
773	773	Sec. 2. K.S.A. 74-4937 is hereby amended to read as follows: 74-
774	774	4937. (1) The normal retirement date of a member of the system who is in
775	775	school employment and who is subject to K.S.A. 74-4940, and
776	776	amendments thereto, shall be the first day of the month coinciding with or
777	777	following termination of employment not followed by employment with
778	778	any participating employer within 60 days, or 180 days as provided in
779	779	K.S.A. 74-4914(10)(9), and amendments thereto, and without any
780	780	prearranged agreement for employment with any participating employer,
781	781	and the attainment of age 65 or, commencing July 1, 1986, age 65 or age
782	782	60 with the completion of 35 years of credited service or at any age with
783	783	the completion of 40 years of credited service, or commencing July 1,
784	784	1993, any alternative normal retirement date already prescribed by law or
785	785	age 62 with the completion of 10 years of credited service or the first day
786	786	of the month coinciding with or following the date that the total of the
787	787	number of years of credited service and the number of years of attained
788	788	age of the member is equal to or more than 85. Each member upon giving
789	789	prior notice to the appointing authority and the retirement system may
790	790	retire on the normal retirement date or the first day of any month
791	791	thereafter. Such member's application for retirement shall contain a
792	792	certification by the member that the member will not be employed with
793	793	any participating employer within 60 days, or 180 days as provided in
794	794	K.S.A. 74-4914(10)(9), and amendments thereto, of retirement and the
795	795	member has not entered into a prearranged agreement for employment
796	796	with any participating employer.
797	797	(2) Any member who is in school employment and who is subject to
798	798	K.S.A. 74-4940, and amendments thereto, may retire before such
799	799	member's normal retirement date on the first day of the month coinciding
800	800	with or following termination of employment not followed by employment
801	801	with any participating employer within 60 days, or 180 days as provided in
802	802	K.S.A. 74-4914(10)(9), and amendments thereto, and the attainment of age
803	803	55 with the completion of 10 years of credited service, upon the filing with
804	804	the office of the retirement system of an application for retirement in such
805	805	form and manner as the board shall prescribe. The member's application
806	806	for retirement shall contain a certification by the member that the member
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849	849	43 SB 388 11
850	850	will not be employed with any participating employer within 60 days, or
851	851	180 days as provided in K.S.A. 74-4914(10)(9), and amendments thereto,
852	852	of retirement and the member has not entered into a prearranged
853	853	agreement for employment with any participating employer.
854	854	(3) (a) The provisions of K.S.A. 74-4914(5), (7) and (10)(6) and (9),
855	855	and amendments thereto, which that relate to an earnings limitation which
856	856	when met or exceeded requires that the retirant not receive a retirement
857	857	benefit for any month for during which such retirant serves in a position as
858	858	described herein shall not apply to retirants who either retired under the
859	859	provisions of K.S.A. 74-4914(l), and amendments thereto, related to
860	860	normal retirement, or, if they retired under the provisions of K.S.A. 74-
861	861	4914(4), and amendments thereto, related to early retirement, and are
862	862	subsequently hired in a position that requires a license under K.S.A. 72-
863	863	2157, and amendments thereto, or other provision of law. The provisions
864	864	of this subsection shall only apply to retirants who retired prior to January
865	865	1, 2018. Except as otherwise provided, when a retirant is employed by the
866	866	same school district or a different school district with which such retirant
867	867	was employed during the final two years of such retirant's participation or
868	868	employed as an independent contractor or by a third-party entity who
869	869	contracts services with a school district to fill a position as described in
870	870	this subsection, the participating employer of such retirant shall pay to the
871	871	system the actuarially determined employer contribution based on the
872	872	retirant's compensation during any such period of employment plus 8%.
873	873	Commencing January 1, 2018, if a retirant is employed in a covered
874	874	position, as defined in K.S.A. 74-49,202, and amendments thereto, the
875	875	participating employer shall pay to the system the statutorily prescribed
876	876	employer contribution rate on the first $25,000 $40,000 of such retirant's
877	877	compensation in a calendar year and a 30% employer contribution on any
878	878	compensation in excess of $25,000 $40,000 in a calendar year during any
879	879	such period of employment. If a retirant is employed by more than one
880	880	participating employer or performing duties in more than one position,
881	881	contributions shall be made on compensation from all such employment
882	882	for that calendar year. If a retirant is employed in a non-covered position,
883	883	no employer contribution shall be paid to the system. The participating
884	884	employer shall enroll all retirants and report to the system when
885	885	compensation is paid to a retirant as provided in this subsection. Such
886	886	notice shall contain a certification by the appointing authority of the
887	887	participating employer that any hired retirant has not been employed by
888	888	the participating employer within 60 days of such retirant's retirement and
889	889	that there was no prearranged agreement for employment between the
890	890	participating employer and the hired retirant. Upon request of the
891	891	executive director of the system, the participating employer shall provide
892	892	such information as may be needed by the executive director to carry out
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935	935	43 SB 388 12
936	936	the provisions of this subsection. The provisions of this subsection shall
937	937	not apply to retirants employed as substitute teachers without a contract.
938	938	The provisions of K.S.A. 74-4914(5), and amendments thereto, shall be
939	939	applicable to retirants employed as described in this subsection, except as
940	940	specifically provided in this subsection. Nothing in this subsection shall be
941	941	construed to create any right, or to authorize the creation of any right,
942	942	which that is not subject to amendment or nullification by act of the
943	943	legislature.
944	944	(4) (a) On and after July 1, 2016, a school district may hire a retired
945	945	licensed professional to fill a special teacher position as defined in K.S.A.
946	946	72-3404, and amendments thereto, if such retirant is hired not prior to 60
947	947	days after such retirant's retirement date without any prearrangement with
948	948	such school district in the manner prescribed in this subsection. The
949	949	participating employer shall enroll all retirants and report to the system
950	950	when compensation is paid to a retirant as provided in this subsection.
951	951	Such notice shall contain a certification by the appointing authority of the
952	952	participating employer that any hired retirant has not been employed by
953	953	the participating employer within 60 days of such retirant's retirement and
954	954	that there was no prearranged agreement for employment between the
955	955	participating employer and the hired retirant. Upon request of the
956	956	executive director of the system, the participating employer shall provide
957	957	such information as may be needed by the executive director to carry out
958	958	the provisions of this subsection.
959	959	(b) A retirant hired under the provisions of this subsection may
960	960	continue to receive such retirant's full retirement benefit for a period not to
961	961	exceed three school years or 36 months, whichever is less, and shall not be
962	962	subject to the provisions of K.S.A. 74-4914(5), and amendments thereto,
963	963	which relate to a compensation limitation which when met or exceeded
964	964	requires that the retirant not receive a retirement benefit for any month for
965	965	which such retirant serves in a position as described herein. Such retirant
966	966	may be employed by such employer for some or all of a school year, and
967	967	in subsequent school years if the employer is unable to permanently fill the
968	968	position with active members, so long as the retirant's total term of
969	969	employment with all employers under this subsection does not exceed 36
970	970	months or three school years, whichever is less. After such period, the
971	971	retirant shall be subject to the provisions of K.S.A. 74-4914(7), and
972	972	amendments thereto, which relate to a compensation limitation which
973	973	when met or exceeded requires that the retirant not receive a retirement
974	974	benefit for any month for which such retirant serves in a position as
975	975	described herein. The participating employer of such retirant shall pay to
976	976	the system a 30% employer contribution based on the retirant's
977	977	compensation during any such period of employment. The provisions of
978	978	this subsection shall not apply to retirants employed as substitute teachers
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1021	1021	43 SB 388 13
1022	1022	without a contract. The provisions of K.S.A. 74-4914(5), and amendments
1023	1023	thereto, shall be applicable to retirants employed as special teachers,
1024	1024	except as specifically provided in this subsection.
1025	1025	(c) Each school district that uses the provisions of this subsection to
1026	1026	hire retirants shall maintain documentation describing their recruiting
1027	1027	efforts to obtain non-retirant employees to fill the special teacher positions.
1028	1028	Upon request of the joint committee on pensions, investments and
1029	1029	benefits, an employer shall provide such documentation to the committee.
1030	1030	If the committee finds that an employer has not made sufficient efforts to
1031	1031	hire a non-retirant for the position or if the committee finds evidence of
1032	1032	prearrangement in violation of this section, the three-year exemption
1033	1033	provided pursuant to this subsection may be revoked. The committee shall
1034	1034	notify the executive director of the system that a retirant's exemption has
1035	1035	been revoked within 30 days of making such a determination.
1036	1036	(d) An employer may submit a written assurance protocol to the
1037	1037	system to make a one-time extension to the exception provided for in this
1038	1038	subsection by one year. Such written assurance protocol shall be signed by
1039	1039	the superintendent and the board president of the school district. Such
1040	1040	written assurance protocol shall state that the position was advertised on
1041	1041	multiple platforms for a minimum of 30 calendar days and that at least one
1042	1042	of the following conditions occurred:
1043	1043	(i) No applications were submitted for the position;
1044	1044	(ii) if applications were submitted, none of the applicants met the
1045	1045	reference screening criteria of the employer; or
1046	1046	(iii) if applications were submitted, none of the applicants possessed
1047	1047	an appropriate teaching license for the state of Kansas or possessed the
1048	1048	appropriate credentials to receive any type of teaching license from the
1049	1049	state of Kansas.
1050	1050	(e) Nothing in this subsection shall be construed to create any right,
1051	1051	or to authorize the creation of any right, which is not subject to
1052	1052	amendment or nullification by act of the legislature.
1053	1053	(f) The provisions of this subsection shall expire on January 1, 2018.
1054	1054	(5) (a) On and after July 1, 2016, a school district may hire a retired
1055	1055	licensed professional to fill a non-special teacher position if such retirant is
1056	1056	hired not prior to 60 days after such retirant's retirement date without any
1057	1057	prearrangement with such school district, and if such school district hires a
1058	1058	retirant for a hard-to-fill position in the manner prescribed in this
1059	1059	subsection. The participating employer shall enroll all retirants and report
1060	1060	to the system when compensation is paid to a retirant as provided in this
1061	1061	subsection. Such notice shall contain a certification by the appointing
1062	1062	authority of the participating employer that any hired retirant has not been
1063	1063	employed by the participating employer within 60 days of such retirant's
1064	1064	retirement and that there was no prearranged agreement for employment
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1107	1107	43 SB 388 14
1108	1108	between the participating employer and the hired retirant. Upon request of
1109	1109	the executive director of the system, the participating employer shall
1110	1110	provide such information as may be needed by the executive director to
1111	1111	carry out the provisions of this subsection.
1112	1112	(b) The state board of education shall annually certify the top five
1113	1113	types of licensed positions that are hard to fill. A school district may hire a
1114	1114	retirant to fill a hard-to-fill position for some or all of a school year and in
1115	1115	subsequent school years if the employer is unable to permanently fill the
1116	1116	position with an active member. A retirant first hired under the provisions
1117	1117	of this subsection may be retained by an employer even if such retirant's
1118	1118	type of position is no longer one of the five types of positions certified by
1119	1119	the state board of education. A retirant hired under the provisions of this
1120	1120	subsection may continue to receive such retirant's full retirement benefit
1121	1121	for a period not to exceed three school years or 36 months, whichever is
1122	1122	less, and shall not be subject to the provisions of K.S.A. 74-4914(5), and
1123	1123	amendments thereto, which relate to a compensation limitation which
1124	1124	when met or exceeded requires that the retirant not receive a retirement
1125	1125	benefit for any month for which such retirant serves in a position as
1126	1126	described herein. Such retirant may be employed by such employer for
1127	1127	some or all of a school year, and in subsequent school years if the
1128	1128	employer is unable to permanently fill the position with active members,
1129	1129	so long as the retirant's total term of employment with all employers under
1130	1130	this subsection does not exceed 36 months or three school years,
1131	1131	whichever is less. After such period, the retirant shall be subject to the
1132	1132	provisions of K.S.A. 74-4914(7), and amendments thereto, which relate to
1133	1133	a compensation limitation which when met or exceeded requires that the
1134	1134	retirant not receive a retirement benefit for any month for which such
1135	1135	retirant serves in a position as described herein. The participating
1136	1136	employer of such retirant shall pay to the system a 30% employer
1137	1137	contribution based on the retirant's compensation during any such period
1138	1138	of employment. The provisions of this subsection shall not apply to
1139	1139	retirants employed as substitute teachers without a contract. The provisions
1140	1140	of K.S.A. 74-4914(5), and amendments thereto, shall be applicable to
1141	1141	retirants employed as described in this subsection, except as specifically
1142	1142	provided in this subsection.
1143	1143	(c) Each school district that uses the provisions of this subsection to
1144	1144	hire retirants for hard-to-fill positions shall maintain documentation
1145	1145	describing their recruiting efforts to obtain non-retirant employees to fill
1146	1146	the hard-to-fill positions. Upon request of the joint committee on pensions,
1147	1147	investments and benefits, a school district shall provide such
1148	1148	documentation to the committee. If the committee finds that a school
1149	1149	district has not made sufficient efforts to hire a non-retirant for the position
1150	1150	or if the committee finds evidence of prearrangement in violation of this
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1194	1194	section, the three-year exemption provided pursuant to this subsection may
1195	1195	be revoked. The committee shall notify the executive director of the
1196	1196	system that a retirant's exemption has been revoked within 30 days of
1197	1197	making such a determination.
1198	1198	(d) An employer may submit a written assurance protocol to the
1199	1199	system to make a one-time extension to the exception provided for in this
1200	1200	subsection by one year. Such written assurance protocol shall be signed by
1201	1201	the superintendent and the board president of the school district. Such
1202	1202	written assurance protocol shall state that the position was advertised on
1203	1203	multiple platforms for a minimum of 30 calendar days and that at least one
1204	1204	of the following conditions occurred:
1205	1205	(i) No applications were submitted for the position;
1206	1206	(ii) if applications were submitted, none of the applicants met the
1207	1207	reference screening criteria of the employer; or
1208	1208	(iii) if applications were submitted, none of the applicants possessed
1209	1209	an appropriate teaching license for the state of Kansas or possessed the
1210	1210	appropriate credentials to receive any type of teaching license from the
1211	1211	state of Kansas.
1212	1212	(e) Nothing in this subsection shall be construed to create any right,
1213	1213	or to authorize the creation of any right, which is not subject to
1214	1214	amendment or nullification by act of the legislature.
1215	1215	(f) The provisions of this subsection shall expire on January 1, 2018.
1216	1216	(6)(4) The provisions of K.S.A. 74-4914(8)(7), and amendments
1217	1217	thereto, shall apply to retirants under the provisions of this section.
1218	1218	(7)(5) For the purposes of this section a prearranged agreement for
1219	1219	employment may be determined by whether the facts and circumstances of
1220	1220	the situation indicate that the employer and employee reasonably
1221	1221	anticipated that further services would be performed after the employee's
1222	1222	retirement.
1223	1223	Sec. 3. K.S.A. 74-4937 and K.S.A. 2023 Supp. 74-4914 are hereby
1224	1224	repealed.
1225	1225	Sec. 4. This act shall take effect and be in force from and after its
1226	1226	publication in the statute book.
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