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Minutes for HB2561 - Committee on Insurance and Pensions
Short Title
Transferring $1,000,000,000 from the state general fund to the Kansas public employees retirement fund during fiscal year 2022 and eliminating certain level-dollar KPERS employer contribution payments.
Minutes Content for Wed, Feb 9, 2022
Chairperson opened the hearing on HB2561
David Weise, Assistant Revisor, Office of Revisor of Statutes provided an overview of the bill. (Attachment8) Revisor stood for questions.
Adam Proffitt, Kansas Division of the Budget, Director, gave neutral testimony stating the bill would transfer $1.0 billion from the State General Fund to KPERS. The first $253.8 million of this transfer would be to pay off the outstanding balance of the state's skipped payments from FY17 and FY19 (layering payments). The remaining funds would be used to pay down a portion of the remaining legacy unfunded actuarial liablility of the KPERS state-school group. (Attachment9) Mr. Proffitt stood for questions.
Alan Conroy, Executive Director, KPERS, provided information on the impact of an extra $1.0 billion to the committee. (Attachment 10) Mr. Conroy stood for questions.
Vice Chairperson Croft introduced Representative Steven Johnson provided testimony in support of the bill stating passing this legislation would result in a landmark achievement of restoring the trust fund to over 80% funded under our current assumptions. Taking this step together to immediately reduce debt, solidify the balance sheet, and reduce future cash flow requirements will pay dividends long into the future.(Attachment11) Rep. Johnson stood for questions.
Vice chairperson directed the committee to written proponent testimony from Attorney General Derek Schmidt. (Attachment12)
Vice chairperson asked for any further proponent, opponent or neutral testimony. There were none. Vice chairperson closed the hearing on HB2561.
