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Minutes for SB256 - Committee on Financial Institutions and Insurance
Short Title
Providing KPERS 3 members an additional interest credit of 1% for calendar year 2023.
Minutes Content for Wed, Mar 15, 2023
Chairperson Longbine opened the meeting and announced that we had a large number of bills on which to take action, but first he recognized Senator Dietrich, who introduced her four Pages for today from Washburn Rural Middle School: Ryan Austin, Miles Cavitte, Tucker Strathman, and Weston Deister. They were welcomed and acknowledged by applause from the members, staff, and audience.
The Chairperson turned the committee's attention to final action on SB256. He asked if anyone needed a quick brief on the bill, but no one indicated it was necessary. Chairperson Longbine introduced an amendment to the bill that would include the Tier 3 state and school group of the Kansas Public Employees Retirement System (KPERS) with an additional interest credit of 1% and removing the current additional interest credit calculation for calendar year 2022; and making and concerning appropriations for the fiscal year ending June 30, 2024. (Attachment 1)
Chairperson Longbine moved his amendment, seconded by Senator Fagg. There was discussion and the Chairperson responded to a question from Senator Pittman about whether this balloon amendment included the union locals, which it did not. The Chairperson related that looking at this kind of change at this time was setting a bad precedent and would increase the fiscal note about $1.3 million, so the locals were not included at this time. Senator Fagg added some additional comments of concern about any type of enhancements being made to KPERS at this time. Senator Fagg urged for a more holistic look and approach this summer by the Interim Joint Committee on Pensions, Investments, and Benefits. Senator Pittman commented that he supported the amendment as a short-term fix, and he, also, had an amendment he would present. Following the discussion, the Chairperson called for a vote on the amendment. He was not certain on the voice vote and called for Division. The amendment failed.
Senator Pittman presented his amendment (Attachment 2), which increased the interest credit to 2% and removed the current additional interest calculation for calendar years 2022 and 2023. Senator Pittman moved his amendment, seconded by Senator Holscher. There was more discussion and was discovered that the amendment had no appropriation in it and would be paid actuarially by the fund over time. The amendment failed. The Chairperson told the committee without the calendar year 22 piece contained in the amendments, the bills no longer worked. The decision was made to pull SB256 from the agenda with no further action at this time.
