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Minutes for SB421 - Committee on Insurance and Pensions
Short Title
Transferring $253,866,022 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 Mon, Mar 7, 2022
Chairperson Johnson opened the hearing on SB421.
David Wiese, Assistant Revisor, Office of the Revisor of Statutes, provided a briefing on SB421. (Attachment6)
Proponent Testimony:
Alan Conroy, Executive Director, KPERS, provided proponent testimony stating SB421 authorizes the transfer of $253.9 million from the State General Fund to the KPERS Trust Fund to pay the remaining balance of delayed employer contributions for Fiscal Year 2017 and Fiscal Year 2019. SB421 authorizes a one-time transfer of $253,866,022 from the State General Fund to the KPERS trust fund to pay off the outstanding balance of both the FY 2017 & 2019 delayed contributions. (Attachment7)
Neutral Testimony:
Adam Proffitt, Director of the Budget, provided neutral testimony stating The administration is in full support of the concept of utilizing the current budget surplus to eliminate the KPERS layering payment, and a nearly identical proposal was included in the Governor’s budget recommendation (GBR) for FY22. Eliminating the KPERS layering payment will provide both immediate and long-term fiscal benefits to the state. It will immediately release $25.8 million of the State General Fund (SGF) annually that would have otherwise been dedicated to debt service for this payment. Over the course of the next 16 years, eliminating this debt will allow the state to save approximately $171.9 million in interest payments, all from the SGF. (Attachment8)
Seeing no other testimony, Chairperson Johnson closed the hearing on SB421.
