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Minutes for HB2481 - Committee on Insurance and Pensions
Short Title
Authorizing KP&F participating service credit purchase for certain in-state nonfederal governmental employment.
Minutes Content for Mon, Jan 24, 2022
The Chairperson opened the hearing on HB2481.
David Wiese, Office of Revisor of Statutes, presented an overview of the bill. The legislation would authorize any member of the Kansas Police and Firemen's Retirement System (KP&F), who were previously employed in in-state nonfederal governmental employment, to purchase service credit for such employment. The option to purchase service credit is similar to what is permitted for members of KPERS. The legislation would go into effect on and after July 1, 2022. (Attachment 1)
The revisor responded to questions.
Alan Conroy, Kansas Public Employees Retirement System, stated for members of the KP&F system, credited service is one factor in calculating retirement benefits. Mr. Conroy explained a member cannot purchase service that is already credited as service time in another pension plan, unless the member withdrew their contributions related to the service, from the previous plan. He noted the member may elect to purchase the service either in a single, lump sum payment or an additional payroll deduction. Mr. Conroy discussed the actuarial costs and administrative costs. He noted a small number of KP&F members would be eligible for the service credit purchase. (Attachment 2)
The conferee stood for questions.
Ed Klumpp, stated his group brought the bill to bring consistency to the eligible purchase of past service time in the KPERS and the KP& F retirement systems. About one third of officers are members of KPERS because they are in local government and they are able to purchase certain service credit from non-federal governmental in-state employer, while the KP&F members are not. The legislation would put the two retirement systems on the same prior service time purchase and qualifications standards. Mr. Klumpp noted the legislation does not create a cost to the system. (Attachment 3)
The conferee stood for questions.
Sgt. Ahsens discussed his situation. As an employee of a previous police department for four years, in which the department was not part of the KP&F system, he would not be able to purchase such service time into his current KP&F retirement system. He stated passage of the bill would help him and other colleagues. (Attachment 4)
The conferee stood for questions.
There were no opponent or neutral conferees.
The Chairperson noted the written only testimony:
Dennis Phillips, Kansas State Council of Firefighters (Attachment 5)
Casey Slaughter, Kansas State Lodge, Fraternal Order of Police (Attachment 6)
Greg Smith, Sheriff's liaison/Special Deputy Sheriff for Government, Veteran, Crime Victim Affairs (Attachment 7)
The Chairperson closed the hearing on HB2481.
The committee was adjourned at 3:58 pm.
