Changes on
the horizon for
government employees

Government workers may see changes in retirement funding after Gov. Sam Brownback signed the bill and three others into law May 25.

Senate Substitute for House Bill 2194 became law after being signed, modifying the Kansas Public Employees System retirement plan for current and future public employees of state, school, and local groups.

Funding for KPERS is short $8 billion.

The new law establishes a 13-member KPERS Study Commission to consider alternative retirement plans. The committee will report its recommendations to the 2012 legislature. The House and Senate then will consider two identical bills. Each chamber must vote on the identical bills in 2012 before other provisions in HB 2194 will be implemented.

Those provisions require increased employer contributions, increased employee contributions, increased benefit multiplier for future service, and the transferring of 80 percent of the proceeds from the sale of surplus state real estate to KPERS to reduce the unfunded liability.

The new law also requires a decision from the Internal Revenue Service as to whether current state employees can choose to change their retirement benefits.

Other bills the Governor signed were:

• HB 2054: Abolishing the Kansas Technology Enterprise Corporation (KTEC) and dividing duties and responsibilities between Kansas Department of Commerce and Kansas Board of Regents.
• Sub. SB 154: Allowing the University of Kansas School of Engineering to issue $65 million in bonds for phase two of its expansion project. It also transfers the bonding authority for the state’s National Bio and Agro-Defense Facility-related expenses from the Kansas Biosciences Authority to the Kansas Department of Administration and requires the State Finance Council’s approval before they can be issued.
• Sub. SB 127: Creating the University Engineering Initiative Act to increase the number of engineering graduates at the University of Kansas, Kansas State University, and Wichita State University. It equally distributes $10.5 million as part of a dollar-for-dollar match by the three universities. It directs the commerce secretary to work with board of regents and the schools to develop a plan to target engineering education efforts to fuel economic growth and business success.

Gov. Brownback has signed 96 bills into law this year.