Session Law

Identifying Information:L. 2002 ch. 003
Other Identifying Information:2002 House Bill 2622
Tax Type:Other
Brief Description:An Act concerning retirement; relating to local police and fire pension plans;contribution rates; amending K.S.A. 12-5002 and repealing the existing section.
Keywords:


Body:

CHAPTER 3

HOUSE BILL No. 2622

An Act concerning retirement; relating to local police and fire pension plans;

contribution rates; amending K.S.A. 12-5002 and repealing the existing section.


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

Section 1. K.S.A. 12-5002 is hereby amended to read as follows: 12-

5002. (a) From and after January 1, 1978, no city may maintain or fund

any local police or fire pension plan except in accordance with the min-

imum funding standards prescribed in this section.

(b) From and after January 1, 1978, and notwithstanding any other

provision of law to the contrary, all cities maintaining and funding any

local police or fire pension plan shall make annual contributions to each

local police or fire pension plan at an annual rate of contribution which

is equal to or greater than the minimum annual rate of contribution which

is determined pursuant to subsections (c) or (d), except as otherwise spe-

cifically authorized pursuant to subsection (g). Such minimum annual rate

of contribution shall be equal to the sum of: (1) The actuarially deter-

mined amount required to amortize over a period of not more than 40

20 years from January 1, 1978, the accrued unfunded liabilities of such

plan which are attributable to active members; and (2) the amount re-

quired to amortize over a period of not more than 20 years from January

1, 1978, the accrued unfunded liabilities of such plan which are attrib-

utable to retired members; and (3) the normal or ongoing costs attrib-

utable to active members. In each year until the local police or fire pen-

sion plan is funded on an actuarial reserve basis as required by this section

and has no accrued unfunded liability attributable to active members or

retired members, the total of such annual contributions shall not be less

than the total amount of pension benefits paid in such year.

(c) All cities which will maintain and fund one or more local police

or fire pension plans on and after January 1, 1978, and which do not elect

pursuant to subsection (d) to use the services of an actuary or firm of

actuaries other than the actuary of the board of trustees, shall furnish to

the board of trustees all necessary data, as determined by the board of

trustees, at times designated by the board of trustees, but not more often

than annually, from which the minimum annual rate of contribution for

each such plan may be determined. Upon the basis of an actuarial analysis

of such data, the board of trustees shall certify, commencing on or before

June 1, 1977, and at least once every three years thereafter, to each such

city the actuarially determined minimum annual rate of contribution

which will be required for each such plan in accordance with subsection

(b) for the ensuing calendar year. All costs involved in making certifica-

tions under this subsection shall be paid by each such city.

(d) Any city which will maintain and fund one or more local police

or fire pension plans on and after January 1, 1978, may elect to use and

pay for the services of an actuary or firm of actuaries other than the

actuary of the board of trustees as provided in subsection (c), in order to

determine the minimum annual rate of contribution for such city for all

such plans. Each city so electing shall file a statement of election with the

board of trustees, setting forth the name and address of the actuary or

firm of actuaries selected by such city and requesting approval thereof.

The board of trustees shall approve such actuary or firm of actuaries for

performance of the periodic actuarial evaluation and review of all the local

police or fire pension plans maintained and funded by such city and for

determination of the minimum annual contribution for each such plan in

accordance with this section if the board of trustees finds that such actuary

or firm of actuaries is qualified therefor. The approved actuary or firm of

actuaries shall perform such actuarial evaluation and review and shall

determine the minimum annual contribution for each local police or fire

pension plan in accordance with this section and shall report annually

thereon to the board of trustees in such form and manner as may be

prescribed by rules and regulations of the board of trustees. The approval

of an actuary or firm of actuaries under this subsection (d) shall be ef-

fective until the city requests approval of another actuary or firm of ac-

tuaries or until the city acts to use the services of the actuary of the board

of trustees under subsection (c) by withdrawing the statement of election

filed under this subsection (d).

(e) In accordance with the provisions of K.S.A. 77-415 et seq. and

amendments thereto, the board of trustees shall adopt rules and regula-

tions which establish actuarial standards and assumptions for the purposes

of actuarial evaluation and review of local police or fire pension plans and

determination of the minimum annual rates of contribution for cities

maintaining and funding such plans. Whenever the amount of any benefit

is to be determined on the basis of actuarial standards and assumptions,

the standards and assumptions shall be specified in a way that precludes

employer discretion.

(f) Prior to the adoption by a city of any proposed changes in the

benefit provisions of a local police or fire pension plan or in the rate of

employee contributions thereto, the governing body of the city shall ob-

tain an actuarial evaluation of the effect of such changes, including an

estimate of the minimum annual contribution which would be required

under this section if such changes are adopted. Such actuarial evaluation

and determination shall be conducted by the actuary of the board of

trustees or by the actuary or firm of actuaries approved under subsection

(d) and all costs incurred therefor shall be paid by the city.

(g) The governing body of any city which is required to make annual

contributions at a minimum annual rate to each local police or fire pension

plan maintained and funded by the city in accordance with this section

and which determines that such minimum annual rate of contributions

would place an undue initial hardship on the property taxpayers of such

city, may adopt a resolution to that effect and file a certified copy of such

resolution with the board of trustees prior to January 1, 1978. Any city

which has filed a certified copy of such resolution with the board of trus-

tees prior to January 1, 1978, may make annual contributions in accord-

ance with the following schedule:

(1) Contributions for the calendar year 1978 shall be at a rate equal

to or greater than the total of: (A) Thirty-three and one-third percent of

the actuarially determined amount required to amortize over a period of

not more than 40 years from January 1, 1978, the accrued unfunded

liabilities of such plan which are attributable to active members; (B)

331/3% of the amount required to amortize over a period of not more than

20 years from January 1, 1978, the accrued unfunded liabilities of such

plan which are attributable to retired members; and (C) the normal or

ongoing costs attributable to active members.

(2) Contributions for the calendar year 1979 shall be at a rate equal

to or greater than the total of: (A) Sixty-six and two-thirds percent of the

actuarially determined amount required to amortize over a period of not

more than 39 years from January 1, 1979, the accrued unfunded liabilities

of such plan which are attributable to active members; (B) 662/3% of the

amount required to amortize over a period of not more than 19 years

from January 1, 1979, the accrued unfunded liabilities of such plan which

are attributable to retired members; and (C) the normal or ongoing costs

attributable to active members.

(3) Contributions for the calendar year 1980 and each year thereafter

shall be at a rate equal to or greater than the total of: (A) One hundred

percent of the actuarially determined amount required to amortize over

a period of not more than 38 years from January 1, 1980, the accrued

unfunded liabilities of such plan which are attributable to active members;

(B) 100% of the amount required to amortize over a period of not more

than 18 years from January 1, 1980, the accrued unfunded liabilities of

such plan which are attributable to retired members; and (C) the normal

or ongoing costs attributable to active members.

(4) In each year until the local police or fire pension plan is funded

on an actuarial reserve basis as required by this section in accordance

with this schedule and has no accrued unfunded liability attributable to

active members or retired members, the total of such annual contribu-

tions shall not be less than the total amount of pension benefits paid in

such year.

Sec. 2. K.S.A. 12-5002 is hereby repealed.

Sec. 3. This act shall take effect and be in force from and after its

publication in the statute book.

Approved March 15, 2002.


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