Session Law

Identifying Information:L. 2002 ch. 063
Other Identifying Information:2002 Senate Bill 375
Tax Type:Other
Brief Description:An Act concerning retirement; relating to schools and community colleges; early retirement incentive programs; amending K.S.A. 2001 Supp. 71-212 and 72-5395 and repealing the existing sections.
Keywords:


Body:

CHAPTER 63

SENATE BILL No. 375


An Act concerning retirement; relating to schools and community colleges; early retire-

ment incentive programs; amending K.S.A. 2001 Supp. 71-212 and 72-5395 and re-


pealing the existing sections.


Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 2001 Supp. 71-212 is hereby amended to read as

follows: 71-212. (a) The board of trustees of any community college may

establish an early retirement incentive program for the benefit of the

employees of the community college for retirement of employees prior

to the normal retirement age of 65 years. As used in this act, an ``early

retirement incentive program'' is a program that provides cash payments,

either in the form of a lump-sum payment at the beginning of the fiscal

year, or in regular payments during the fiscal year. No payment pursuant

to an early retirement incentive program as provided in this section shall

be made prior to the retirement under the provisions of the Kansas public

employees retirement system of any such employee of the community

college. Commencing in the fiscal year that commenced in calendar year

1996 and at least once every three years thereafter, each board that has

established an early retirement incentive program as provided in this sec-

tion shall employ and pay an actuary who is a member of the American

academy of actuaries and the society of actuaries and is an enrolled ac-

tuary under the employees retirement income security act to conduct an

actuarial valuation of the liabilities of the program, except that the initial

1996 actuarial valuation shall not be required as provided in this section

of any board that has conducted such an actuarial valuation of its early

retirement incentive program within the preceding 18 months of the ef-

fective date of this act. Any early retirement incentive program estab-

lished as provided in this section after the effective date of this act shall

conduct the actuarial valuation as required in this section within six

months of such establishment and at least once every three years there-

after. Each actuarial valuation required by this section shall be reported

to the joint committee on pensions, investments and benefits by such

board no later than January 1, 2000.

(b) The board of trustees of any community college shall not com-

mence any new early retirement incentive programs from the effective

date of this act until July 1, 2000.

(c) An early retirement incentive program established pursuant to

subsection (a) prior to the effective date of this act is hereby declared

valid.

(b) Commencing in the fiscal year that commenced in calendar year

2002 and every three years thereafter, each board that has established an

early retirement incentive program shall prepare and submit a report to

the state board of regents related to such early retirement incentive pro-

gram. Such report shall contain: (1) Three years of budget data of such

program, including actual costs, and a current year and future years'

budget data for three to five years; (2) current costs and benefits of such

program and projected costs and benefits of such program for three to

five years; (3) current and projected number of participants in such pro-

gram; and (4) such other information as required by the state board of

regents. The state board of regents shall design and distribute forms to

carry out the provisions of this act to the board of trustees of each com-

munity college that has established an early retirement incentive program.

The state board of regents shall compile and prepare a summary report

which shall be submitted to the joint committee on pensions, investments

and benefits no later than January 1 of the year that follows the end of

the fiscal year in which the reporting is required as provided in this

subsection.

Sec. 2. K.S.A. 2001 Supp. 72-5395 is hereby amended to read as

follows: 72-5395. (a) The board of education of any school district may

establish an early retirement incentive program for the benefit of the

employees of the district for retirement prior to the normal retirement

age of 65 years. As used in this act, an ``early retirement incentive pro-

gram'' is a program that provides cash payments, either in the form of a

lump-sum payment at the beginning of the fiscal year, or in regular pay-

ments during the fiscal year. No payment pursuant to an early retirement

incentive program as provided in this section shall be made prior to the

retirement under the provisions of the Kansas public employees retire-

ment system for any employee of the district. Commencing in the fiscal

year that commenced in calendar year 1996 and at least once every three

years thereafter, each board that has established an early retirement in-

centive program as provided in this section shall employ and pay an ac-

tuary who is a member of the American academy of actuaries and the

society of actuaries and is an enrolled actuary under the employees re-

tirement income security act to conduct an actuarial valuation of the li-

abilities of the program, except that the initial 1996 actuarial valuation

shall not be required as provided in this section of any board that has

conducted such an actuarial valuation of its early retirement incentive

program within the preceding 18 months of the effective date of this act.

Any early retirement incentive program established as provided in this

section after the effective date of this act shall conduct the actuarial val-

uation as required in this section within six months of such establishment

and at least once every three years thereafter. Each actuarial valuation

required by this section shall be reported to the joint committee on pen-

sions, investments and benefits by such board no later than January 1,

2000.

(b) The board of education of any school district shall not commence

any new early retirement incentive programs from the effective date of

this act until July 1, 2000.

(c) An early retirement incentive program established pursuant to

subsection (a) prior to the effective date of this act is hereby declared

valid.

(b) Commencing in the fiscal year that commenced in calendar year

2002 and every three years thereafter, each board that has established an

early retirement incentive program shall prepare and submit a report to

the state board of education related to such early retirement incentive

program. Such report shall contain: (1) Three years of budget data of such

program, including actual costs, and current year and future years'

budget data for three to five years; (2) current costs and benefits of such

program and projected costs and benefits of such program for three to

five years; (3) current and projected number of participants in such pro-

gram; and (4) such other information as required by the state board of

education. The state board of education shall design and distribute forms

to carry out the provisions of this act to the board of education of each

school district that has established an early retirement incentive program.

The state board of education shall compile and prepare a summary report

which shall be submitted to the joint committee on pensions, investments

and benefits no later than January 1 of the year that follows the end of

the fiscal year in which the reporting is required as provided in this

subsection.

Sec. 3. K.S.A. 2001 Supp. 71-212 and 72-5395 are hereby repealed.

Sec. 4. This act shall take effect and be in force from and after its

publication in the statute book.

Approved April 10, 2002.


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Date Composed: 10/10/2002 Date Modified: 10/10/2002