New Rules for Working After Retirement
The Governor has recently signed new legislation changing "working after retirement" rules for KPERS members and employers (not KP&F or Judges) beginning July 1, 2016. We'll send more information to employers and members soon.
A high-level summary: Flowchart, New Working After Retirement Rules revised 6/1/15 (PDF, 120KB)
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 it works
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.
- Crews are working on Kansas Avenue and I-70 near downtown. There will be closures for several weeks. See our contact page for more details.
- BenefitWise - KPERS Active Member Newsletter, May 2015 (PDF, 218KB)
- Vested Interest - 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)