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.
Impact
The core intention behind SB388 is to enhance the sustainability of the retirement system by increasing contributions based on retirants' earnings. This increases the financial obligation of employers when re-hiring retirees, potentially making them more cautious in their hiring practices. Supporters argue that increasing the contribution threshold will bolster the retirement system's funding, ensuring long-term viability and security for all retirants. Conversely, critics might express concerns about the burdens this places on schools and other organizations, which may struggle to meet these increased costs while also fulfilling their staffing needs, especially in hard-to-fill roles.
Summary
Senate Bill 388 aims to amend the Kansas public employees retirement system regulations, particularly concerning the employment of retirants. The bill proposes to increase the amount of retirant compensation that employers must contribute to the retirement system from the first $25,000 to $40,000 earned by a retirant in a calendar year. This adjustment could significantly impact school districts and other employers that rely on hiring retired professionals to fill critical positions. Additionally, the bill retains the framework that applies restrictions on reemployment of retirants, ensuring no prearrangement occurs prior to retirement, which is crucial for compliance with retirement benefit regulations.
Contention
One notable point of contention arises from the implications this bill could have on local school districts' abilities to recruit and retain qualified staff. By reinforcing the financial contributions required from districts hiring retirees, there may be a hesitation to utilize available expertise, particularly in specialized roles where finding active educators can be inherently challenging. Furthermore, the bureaucracy involved in proving recruitment efforts for hard-to-fill positions adds a layer of oversight that some may perceive as unnecessary or stifling to local hiring autonomy. Overall, while SB388 seeks to modernize the retirement system, it prompts vital discussions about striking a balance between financial sustainability and local employment flexibility.
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.
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.
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.
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.
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.
Retirement: public school employees; employment of retirant without forfeiting the retirant's retirement allowance for retirant earning less than a certain dollar amount; allow. Amends sec. 61 of 1980 PA 300 (MCL 38.1361).
Increases accidental death benefit for surviving spouse or surviving children of certain PERS members and retirants; provides accidental death benefit to beneficiary of certain PERS and PFRS members and retirants; redefines child.
Increases accidental death benefit for surviving spouse or surviving children of certain PERS members and retirants; provides accidental death benefit to beneficiary of certain PERS and PFRS members and retirants; redefines child.
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.
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.
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.