Why pension bonds are good for KPERS
Governor signs bond legislation
Governor Brownback has signed SB 228, authorizng $1 billion in pension bonds. The State Finance Council will have final approval before the bonds are sold. Bonds can't be sold if the bond interest rate is above 5%.
SB 228 also decreases State contributions for Fiscal Years 2016 and 2017.
- 10.91%, FY16
- 10.81%, FY17
How they work
The State of Kansas sells pension obligation bonds to investors. The State pays back investors annually, with interest, over 30 years. Historically, the State has used general fund money from the State budget to pay investors. It will not come from the KPERS’ Trust Fund. It is a State obligation.
The money the State makes from selling the bonds is deposited into the KPERS Trust Fund. It’s then invested as part of the System’s portfolio. Investment returns over time help fund benefits.
Why is this good for KPERS?
This puts more money into the Trust Fund. It immediately lowers KPERS’ unfunded liability and improves our funding. There are more assets to earn investment returns and pay promised benefits.
Proposed New Rules for Working After Retirement
Current legislation could fundamentally change "working after retirement" rules for KPERS members (not KP&F or Judges). Keep in mind it is still in the legislative process and nothing has been signed into law.
Fact Sheet, HB 2253 (PDF, 156KB)
Flow Chart, HB 2253 (PDF, 610KB)
Flow Chart, SB 299 (PDF, 108KB)
Are you within 5 years of retirement? Wondering when and how to make the dive? Our spring seminars will help you figure it out. Click here for details.
- Crews are working on the 600-block of Kansas Avenue and there will be closures for several weeks.
- 600-BLOCK NOW: Open to one lane in each direction on the west side and parking is limited. Click here for more details and parking options. (PDF 625KB)
- BenefitWise - KPERS Active Member Newsletter, March 2015 (PDF, 478KB)
- VestedInterest - KPERS Retiree Newsletter, February 2015 (PDF, 515KB)
- Fact Sheet: Governor's KPERS Employer Contribution Reduction (PDF, 112KB)
- Issue Brief: Important Changes in Pension Accounting and Financial Reporting for KPERS Employers (PDF, 163KB)