The Legislature adjourned the 2023 Session late on Friday, so this will be the final update email for the year. 

The Legislature passed two bills affecting KPERS during this session.

HB 2196 expands the KP&F DROP to all KP&F employers as of April 27, 2023. In addition, the bill makes the Kansas Department of Wildlife and Parks an affiliated KP&F employer on July 1, 2023 and makes certain law enforcement positions at the agency eligible for KP&F participation. 

HB 2100 defines environmental, social and governance factors and establishes limits on the consideration of those factors when entering into contracts (including investment contracts) and when making proxy votes on behalf of the System.

KPERS FY 2023 and FY 2024 operating budget was approved as requested by the Board of Trustees. In addition, the appropriations bill included:

  • Two positions and funding to administer the expanded DROP and adding Wildlife and Parks to KP&F.
  • $450,000 to contract with a vendor for proxy voting services as part of the new ESG requirements.
  • Language to allow the State Treasurer to restart the program to transfer Unclaimed Property amounts to the KPERS Board of Trustees for investment management. This program was paused in 2018 and can now restart after the bill is published in the Kansas Register. 
The Legislature also approved a pay plan for FY 2024. The pay plan is based on the Department of Administration market study and the adjustments include:
  • Any amount necessary to move a position 15% or more below market to 10% below market.
  • 5% for any position 15% below market to 10% over market.
  • 2.5% for any position more than 10% over market.
  • 5% for any unclassified, benefits eligible position not included in the market study.
At this time we do not have the calculation of how KPERS budget will be adjusted for the pay plan.

If you have any questions, please send me an email at [email protected].
Senate Calendar
Action and Subject Index
House Calendar
KPERS Legislative Page
KPERS Related Bills 
  KP&F coverage for Department of Corrections security officers. Expanding the KPERS 3 self-funded COLA option to KPERS 1 and KPERS 2 members.  Include juvenile corrections officers in the definition of corrections officers for coverage in the KPERS-Correctional plan.
  Environmental, Social and Governance (ESG) Investing restrictions.

House Bill 2103 | KPERS Summary
Eliminating the 15% cap on alternative investments and delegating selection of the alternatives cap to the Board of Trustees.
  Authorizing transfers of unclaimed property funds from the State Treasurer for management by the KPERS Board of Trustees. 
  Working after retirement; Requiring the statutory employer contribution rate for all retiree compensation for a period ending December 31, 2024. Increasing the threshold for 30% employer contribution to $35,000. 
  Expanding the KP&F Deferred Retirement Option Program to all KP&F employers. 
  KP&F affiliation for certain positions within the Kansas Department of Wildlife and Parks.
  Providing a retiree Cost of Living Adjustment (COLA).
  Working after retirement exemption for Community Development Disability Organizations (CDDOs).
  Abolishing KPERS 3; Transferring KPERS 3 members to KPERS 2.
  Environmental, Social, and Governance (ESG) investing; KPERS divestment requirements 
  KP&F Coverage for State Corrections positions and Wildlife and Parks officers. 
  Environmental, Social and Governance (ESG) Investing restrictions.
  Legislator compensation, including eliminating salary annualization for KPERS calculations.
  Eliminating the 15% cap on alternative investments and delegating selection of the alternatives cap to the Board of Trustees. Increasing the KPERS lump-sum death benefit from $4,000 to $6,000. Providing a retiree Cost of Living Adjustment (COLA). Environmental, Social, and Governance (ESG) investing; KPERS divestment requirements
  Enacting the Kansas Thrift Savings Plan
  1% CY 2023 dividend interest credit for KPERS 3 members (total dividend, not additional) Environmental, Social and Governance (ESG) Investing restrictions.