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Nov. 24, 2017
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Minutes for HB2268 - Committee on Financial Institutions and Insurance

Short Title

Extending the sunset date on certain working after retirement exemptions.

Minutes Content for Tue, Mar 14, 2017

The Chairperson opened the hearing on HB2268.  David Wiese presented a short summary of the bill.    (Attachment 9)

Alan Conroy presented a KPERS summary of HB2268 and the House Committee recommendations and amendments as follows:

  • Working after retirement sunset date
  • Third party and independent contractors
  • Regents provision
  • Consolidating exemptions
  • Legislative earnings cap
  • Technical amendment
  • Age 62 exemption

Director Conroy remarked that most of the amendments are not expected to have a material fiscal impact on KPERS.  He discussed the three amendments that may, in some way, affect the ability of retirees to return to work without an earnings limit, the factors for such an impact, the assumptions that might be expected, and other relevant factors associated with determining long-term actuarial costs.   (Attachment 10) 

Elaine Frisbie testified in support of  HB2268.  She told the committee that KBOR has over 26,000 active employees in their KPERS plan.  She explained that KBOR testified in September 2016 before the Joint Select Committee on Pensions, Investments, and Benefits and asked for an exemption identical to that provided for KP&F and judicial branch employees, so that if a KPERS retiree is hired into a Regents Mandatory Retirement Plan position, the employee is not affected by the earnings cap, and the employer is not impacted by the KPERS new contribution requirement.   (Attachment 11)     

Amanda Stanley also spoke in support of HB2268.  She told the committee that LKM specifically supports the provisions regarding exempting independent contractors and employees of third party entities from the specified working after retirement provisions.  She explained that the proposed language offers a clear mechanism to ensure that if a municipality hired an independent contractor or third-party entity, it would not be penalized for seeking the most qualified contractor.  (Attachment 12)

The proponents stood for questions from the committee.  Alan Conroy answered a question from Senator Givens; there were no other questions.

Chairperson Longbine pointed the committee's attention to the supportive written-only testimony from Hannes Zacharias, County Manager, Johnson County, Kansas.  (Attachment 13) 

There being no other questions or discussion, and no other conferees or written-only testimony submitted, Chairperson Longbine closed the hearing on HB2268.

Due to expiration of the meeting time, the Chairperson announced the hearing on HB2111 was cancelled and another hearing would be scheduled for a future date.  The meeting adjourned at 10:30 am.  The next scheduled meeting is Wednesday, March 15, 2017, at 9:30 am.