Enacting the Kansas retirement investment and savings plan (KRISP) act and establishing terms, conditions, requirements, membership elections, accounts, benefits, contributions and distributions related to such plan.
One of the significant impacts of the bill is that it introduces a defined contribution plan, differing from the traditional defined benefit plans. Active employees hired on or after July 1, 2027, will automatically be enrolled in KRISP unless they opt for the existing defined benefit system. This shift has the potential to alter the retirement landscape for new public employees, affecting how retirement benefits are accumulated and disbursed. Current members of defined benefit plans are allowed to elect to become KRISP members, giving them access to different contribution arrangements.
Senate Bill 282, known as the Kansas Retirement Investment and Savings Plan Act (KRISP), establishes a new retirement plan for public employees in Kansas, effective July 1, 2027. The bill outlines the conditions for membership, benefits, contributions, and distribution options for new employees who join participating employers after this date. The legislation aims to provide a modernized retirement system that complements existing provisions while allowing for elective contributions to a deferred compensation plan, offering members the chance to increase their retirement income through various investment options.
The introduction of KRISP has raised concerns among existing members of the Kansas public employees retirement system. Critics argue that shifting to a defined contribution framework could undermine the financial stability provided by the traditional defined benefit plans, which guarantee a specific retirement payout. Additionally, the bill allows adjustments of retirement system parameters by the legislature, which some view as a risk that could lead to reduced benefits in the future. The ongoing discussions regarding the bill reflect a divide in perspectives over the necessity and implications of reforming Kansas’s public retirement systems.