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Minutes for HB2243 - Committee on Insurance and Pensions

Short Title

Adjusting the frequency of the KPERS actuarial experience study.

Minutes Content for Mon, Feb 8, 2021

The Chairperson opened the hearing on HB2243 and asked David Wiese, Assistant Revisor, Office of the Revisor of Statutes, to provide an overview of the bill. (Attachment 1)

The Chairperson asked Melissa Renick, Assistant Director for Research, Kansas Legislative Research Department, to provide an overview of the fiscal note.  Ms. Renick and Ms. Ma responded to Committee questions regarding the fiscal note.

Alan Conroy, Executive Director of Kansas Public Employee Retirement System provided testimony neutral to the bill.  He explained that HB2243 changes the required timing of the KPERS actuarial experience study.  According to Mr. Conroy, current state law requires an actuarial experience study to be performed every three years. HB2243 changes the required timing to every four years, but allows for KPERS board of Trustees, as fiduciaries to the plan, to decide to complete the experience study after three years or five years if they believe it is prudent.  The Director went on to explain that completing an experience study every three years is generally on the shorter end of common practice, but is within the recommended time frame for completing experience studies.  He said that change to a four-year schedule would provide an additional year of data in evaluating the actual experience, thus improving the credibility of the results for certain demographic assumptions. In conclusion, Mr. Conroy stated that this change has very little impact on the System.  Mr. Conroy responded to questions from the Committee.  It was mistakenly listed as proponent testimony on the day's agenda, but the testimony was in fact neutral to the bill. (Attachment 2)

After asking if there were any other conferees and seeing none, Chairperson Johnson closed the hearing on HB2243.