Friday, May 4, 2007

Kansas Public Employees Retirement System for employees hired after July 1, 2009.

Kansas Public Employees Retirement Systems changes affect future hires

The Lawrence Journal World & News reports changes are in store for future Kansas state employees.

It wasn’t a sexy topic, but one of the major pieces of work in the just-completed legislative session will bring a substantial change to the state’s public employee pension system.

Senate Bill 362 increases the retirement age and employee contribution rate in the
Currently, KPERS members can retire under the 85-point rule, when their age plus years of service equal 85. For those hired after July 1, 2009, that rule is removed and the normal retirement age will be 60 with 30 years of service, or 65 with five years of service.

“Over the long-term this will save a significant amount of money,” KPERS executive director Glenn Deck said Thursday.

KPERS has assets of more than $12 billion, but the gap between its value and future obligations — called the unfunded liability — has grown to $5.1 billion. KPERS includes state employees, teachers and many local government workers.

In addition to the unfunded liability concerns, KPERS needed to adapt to the fact that members were living and working longer, and that baby boomers — a large proportion of members — are hitting retirement age, Deck said.