Kansas 2025-2026 Regular Session

Kansas House Bill HB2086 Compare Versions

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Old	New	Differences
1	1	Session of 2025
2	2	HOUSE BILL No. 2086
3	3	By Committee on Financial Institutions and Pensions
4	4	Requested by Representative Hoheisel
5	5	1-23
6	6	AN ACT relating to the Kansas public employees retirement system;
7	7	pertaining to the Kansas public employees retirement act of 2015;
8	8	adjusting the investment return threshold for the dividend interest credit
9	9	calculation and increasing such dividend share to 80%; amending
10	10	K.S.A. 74-49,306 and 74-49,308 and repealing 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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75	75	for calendar years 2015, 2016 and 2017 on the market value of the
76	76	system's assets that is above 6%, except that such additional interest credit
77	77	shall not exceed 1.5%;
78	78	(4) for the additional interest credit based on the member's annuity
79	79	savings account balance as of December 31, 2018, the dividend shall be
80	80	equal to 75% of the average net rate of return as determined by the board
81	81	for calendar years 2015, 2016, 2017 and 2018 on the market value of the
82	82	system's assets that is above 6%, except that such additional interest credit
83	83	shall not exceed 1.5%; and
84	84	(5) for the additional interest credit based on the member's annuity
85	85	savings account balance as of December 31, 2019 for calendar year 2024,
86	86	and all calendar years thereafter, the dividend shall be equal to 75% 80%
87	87	of the five-year average net compound rate of return as determined by the
88	88	board for that calendar year and the previous four calendar years on the
89	89	market value of the system's assets that is above 6% 5%.
90	90	(c) The member's annuity savings account is vested from the date that
91	91	the employee becomes a member of the plan.
92	92	(d) Interest credits under subsections (a) and (b) shall not be granted
93	93	on the member's annuity savings account following the end of the second
94	94	plan year following the member's termination of employment under the
95	95	plan without vesting in the retirement annuity account as provided in
96	96	K.S.A. 74-49,312, and amendments thereto.
97	97	(e) For a member to be eligible for an additional interest credit, the
98	98	member shall have an account balance at the time the interest credit is
99	99	posted to the account.
100	100	Sec. 2. K.S.A. 74-49,308 is hereby amended to read as follows: 74-
101	101	49,308. (a) A member's retirement annuity account is the sum of all
102	102	employer credits to the account plus the interest credits on the account,
103	103	which shall be credited no less frequently than quarterly, based on the
104	104	account balances as of the last day of the preceding quarter. Effective
105	105	January 1, 2015, the interest credits are 4% per annum. The legislature
106	106	may from time to time prospectively change the interest credits, and
107	107	expressly reserves the right to do so.
108	108	(b) The board shall provide for an annual additional interest credit.
109	109	The additional interest credit shall be posted to the member's retirement
110	110	annuity account on March 31 or as soon as practicable, based on the
111	111	member's account value as of December 31 of the preceding year. The
112	112	additional interest credit shall be determined as follows:
113	113	(1) For the annual additional interest credit based on the member's
114	114	retirement annuity account balance as of December 31, 2015, the dividend
115	115	shall be equal to 75% of the average net rate of return as determined by the
116	116	board for calendar year 2015 on the market value of the system's assets
117	117	that is above 6%, except that such additional interest credit shall not
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161	161	exceed 1.5%;
162	162	(2) for the annual additional interest credit based on the member's
163	163	retirement annuity account balance as of December 31, 2016, the dividend
164	164	shall be equal to 75% of the average net rate of return as determined by the
165	165	board for calendar years 2015 and 2016 on the market value of the
166	166	system's assets that is above 6%, except that such additional interest credit
167	167	shall not exceed 1.5%;
168	168	(3) for the additional interest credit based on the member's retirement
169	169	annuity account balance as of December 31, 2017, the dividend shall be
170	170	equal to 75% of the average net rate of return as determined by the board
171	171	for calendar years 2015, 2016 and 2017 on the market value of the
172	172	system's assets that is above 6%, except that such additional interest credit
173	173	shall not exceed 1.5%;
174	174	(4) for the additional interest credit based on the member's retirement
175	175	annuity account balance as of December 31, 2018, the dividend shall be
176	176	equal to 75% of the average net rate of return as determined by the board
177	177	for calendar years 2015, 2016, 2017 and 2018 on the market value of the
178	178	system's assets that is above 6%, except that such additional interest credit
179	179	shall not exceed 1.5%; and
180	180	(5) for the additional interest credit based on the member's retirement
181	181	annuity account balance as of December 31, 2019 for calendar year 2024,
182	182	and all calendar years thereafter, the dividend shall be equal to 75% 80%
183	183	of the five-year average net compound rate of return as determined by the
184	184	board for that calendar year and the previous four calendar years on the
185	185	market value of the system's assets that is above 6% 5%.
186	186	(c) For a member to be eligible for an additional interest credit, the
187	187	member shall have an account balance at the time the interest credit is
188	188	posted to the account.
189	189	(d) Interest credits under subsections (a) and (b) shall not be granted
190	190	on the member's non-vested retirement annuity account following the end
191	191	of the second plan year following the member's termination of
192	192	employment covered under the plan.
193	193	Sec. 3. K.S.A. 74-49,306 and 74-49,308 are hereby repealed.
194	194	Sec. 4. This act shall take effect and be in force from and after its
195	195	publication in the statute book.
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