Session Law

Identifying Information:L. 2002 ch. 192
Other Identifying Information:2002 Senate Bill 509
Tax Type:Other
Brief Description:(Amends Chapter 116)An Act relating to state officers and employees; relating to compensation benefits and periods of reduced or suspended compensation; amending K.S.A. 74-49,115, 75-5521, 75-5523, 75-5524, as amended by section 10 of 2002 Senate Substitute for House Bill No. 2621, 75-5530 and 75-5531 and K.S.A. 2001 Supp. 75-5525 and repealing the existing sections.
Keywords:


Body:

CHAPTER 192

SENATE BILL No. 509

(Amends Chapter 116)


An Act relating to state officers and employees; relating to compensation benefits and

periods of reduced or suspended compensation; amending K.S.A. 74-49,115, 75-5521,

75-5523, 75-5524, as amended by section 10 of 2002 Senate Substitute for House Bill

No. 2621, 75-5530 and 75-5531 and K.S.A. 2001 Supp. 75-5525 and repealing the ex-


isting sections.


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

Section 1. K.S.A. 74-49,115 is hereby amended to read as follows:

74-49,115. (a) When the rate of compensation for any officer or employee

of the state, who retires, becomes disabled or dies during the period com-

mencing on the effective date of this act and ending June 30, 2007, is

reduced pursuant to law or, when such officer or employee voluntarily

agrees to reduce such officer or employee's rate of compensation for the

period commencing on January 1, 1987, and ending on June 30, 1987, or

when any officer or employee of the state is placed on a furlough without

pay, the amount of salary which compensation that would have been paid

if the rate of compensation had not been reduced or if the officer or

employee had not been placed on the furlough shall continue to be in-

cluded as compensation for all purposes of computing retirement and

pension benefits and death and disability benefits as provided in article

26 of chapter 20 and article 49 of chapter 74 of the Kansas Statutes

Annotated earned by such salaried officer or employee as provided by

the Kansas public employees retirement system, the Kansas police and

firemen's retirement system and the retirement system for judges. Sub-

ject to the approval of the secretary of administration, the director of

accounts and reports shall prescribe procedures for the payment and re-

mittance of employer and employee contributions by the state agency

employing such employees. The board shall administer the provisions of

this section, with the cooperation of the director of personnel services.

(b) The provisions of subsection (a) shall not be applicable to salary

compensation reductions attributable to: (1) Voluntary demotions of em-

ployees in the classified service; (2) deferred compensation pursuant to

the plan authorized by K.S.A. 75-5523 and amendments thereto; or (3)

to salary compensation reductions attributable to the cafeteria plan au-

thorized by K.S.A. 75-6512 and amendments thereto.

(c) For the purposes of this section, ``officer'' and ``employee'' means

any officer or employee of the state, any member of the legislature or any

employee of an institution under the supervision of the board of regents.

Sec. 2. K.S.A. 75-5521 is hereby amended to read as follows: 75-

5521. As used in this act:

(a) ``Beneficiary'' means any person designated to receive benefits

under a deferred compensation plan.

(b) ``Deferred compensation plan'' means a plan developed and ap-

proved as provided in this act and under which an employee sets aside a

specified amount of salary or compensation which may not be subject to

state or federal taxation until receipt thereof by the employee under

stated conditions in the future a participant elects to defer, transfer or

rollover amounts as permitted by the plan.

(c) ``Director'' means the director of accounts and reports.

(d) ``Employee'' means any person who is an elected or appointed

officer or any employee of the state in the classified service or unclassified

service under the Kansas civil service act, other than persons who are

employed on a seasonal or temporary basis.

(e) ``Participant'' means an eligible employee who has entered into

an agreement with the director as provided in K.S.A. 75-5524, to defer

an amount of the employee's salary or compensation under the Kansas

public employees deferred compensation plan.

(f) ``State'' means the state of Kansas and any state agency as defined

in subsection (3) of K.S.A. 75-3701, and amendments thereto.

Sec. 3. K.S.A. 75-5523 is hereby amended to read as follows: 75-

5523. (a) The director is authorized to establish a deferred compensation

plan in accordance with the federal revenue act of 1978, Public Law No.

95-600 section 457 of the federal internal revenue code of 1986, and

amendments thereto, subject to the approval of the secretary of admin-

istration. Such plan shall be the Kansas public employees deferred com-

pensation plan. All powers and duties heretofore conferred by such plan

upon the advisory committee on deferred compensation are hereby trans-

ferred to the director of personnel services or the director's designees.

(b) The director may enter into an agreement or agreements with

approved insurers or other contracting parties whereby benefits under

the Kansas public employees deferred compensation plan would be made

available to those participants who contract with the director for deferred

compensation under K.S.A. 75-5524, and amendments thereto. In addi-

tion, the director may enter into an agreement with one or more qualified

private firms for consolidated billing services, participant enrollment serv-

ices, participant accounts and other services related to the administration

of the Kansas public employees deferred compensation plan.

(c) No significant costs shall be incurred by the state as a result of

the administration of this act unless such costs are recovered by charging

and collecting a service charge from all participants and in addition

thereto or in lieu thereof, where the director has entered into agreements

with one or more qualified private firms under subsection (b), are recov-

ered from such firms. The amount of any such significant costs incurred

and to be recovered by the state shall be determined by the director.

(d) Subject to the approval of the secretary of administration, the

director is authorized to negotiate and enter into contracts with qualified

insurers and other contracting parties for the purposes of establishing a

deferred compensation plan, including acquisition of actuarial and other

services necessary therefor. The director shall advertise for deferred com-

pensation proposals, shall negotiate with not less than three firms or other

contracting parties submitting such proposals, and shall select from

among those submitting such proposals the firm or firms or other con-

tracting party or parties to contract with for purposes of establishing a

deferred compensation plan. Contracts entered into under this act shall

not be subject to K.S.A. 75-3739 and amendments thereto.

Sec. 4. K.S.A. 75-5524, as amended by section 10 of 2002 Senate

Substitute for House Bill No. 2621, is hereby amended to read as follows:

75-5524. (a) The director is authorized to enter into a voluntary agree-

ment with any employee whereby the director agrees to defer and deduct

each payroll period a portion of the employee's salary or compensation

from the state in accordance with the Kansas public employees deferred

compensation plan. Such agreement may require each participant to pay

a service charge to defray all or part of any significant costs incurred and

to be recovered by the state pursuant to subsection (c) of K.S.A. 75-5523,

and amendments thereto, as a result of the administration of this act.

Pursuant to this act and such agreements the director is authorized to

deduct amounts authorized in such agreements from the salary or com-

pensation of such employee each payroll period, as part of the system of

regular payroll deduction. On and after July 1, 2002, pursuant to section

401(a) of the federal internal revenue code, the director may establish a

qualified plan under which the state may contribute a specified amount,

subject to appropriations, to the deferred compensation plan for state

employees who have entered into a voluntary agreement with the director

under this section.

(b) The minimum amount and the maximum amount which may be

deferred in any one payroll period shall be established by rules and reg-

ulations adopted under K.S.A. 75-5529, and amendments thereto.

(c) The Kansas public employees deferred compensation plan shall

exist and be in addition to, and shall not be a part of any retirement or

pension system for employees. The state shall not be responsible for any

loss incurred by an employee a participant under the Kansas public em-

ployees deferred compensation plan established and approved pursuant

to this act.

(d) Any amount of the employee's salary or compensation that is de-

ferred under such authorized agreement shall continue to be included as

regular compensation for all purposes of computing retirement and pen-

sion benefits earned by any such employee, but any sum deferred or

deducted shall not be subject to any state or local income taxes for the

year in which such sum is earned but shall be subject to applicable state

and local income taxes for the year in which such sum is received by the

employee.

(e) The director is hereby authorized to establish a deferred com-

pensation clearing fund in the state treasury in which shall be placed

temporarily all compensation deferred, deducted or contributed in ac-

cordance with this act, as provided for in any agreement between an

employee a participant and the director.

Sec. 5. K.S.A. 2001 Supp. 75-5525 is hereby amended to read as

follows: 75-5525. (a) All moneys which are deferred and, deducted by the

director transferred or rolled-over in accordance with the provisions of

an agreement entered into under K.S.A. 75-5524, and amendments

thereto the deferred compensation plan, and the provisions of this act,

shall remain assets of the state, shall be held in trust in accordance with

section 457 of the federal internal revenue code of 1986, and amendments

thereto, for the exclusive benefit of participants and their beneficiaries,

and shall be disposed of in accordance with the terms of the agreement

between the employee and the director with the participant. The obli-

gation of the state to the employee and approved insurers or other con-

tractors shall be a contractual obligation only and no preferred or special

interest in the deferred moneys shall accrue to such employee or to such

approved insurer or other contractor. No part of the assets of the plan

may be used for, or diverted to, purposes other than for the exclusive

benefit of participants and the participant's beneficiaries and for defray-

ing reasonable expenses of the plan.

(b) Contributions Amounts payable to the deferred compensation

plan pursuant to the plan shall not be subject to any premium tax or other

charges arising under the insurance laws of this state. If any such tax or

charge has been paid prior to the effective date of this act, the same shall

be refunded.

Sec. 6. K.S.A. 75-5530 is hereby amended to read as follows: 75-

5530. (a) Upon receipt of written authorization by any state employee,

the director of accounts and reports shall make periodic deductions of

amounts as specified in such authorization from the salary or wages of

such state employee for the purposes of purchasing United States savings

bonds and. The director of accounts and reports shall make payments of

such amounts in accordance with such authorization and the payroll de-

duction plan adopted pursuant to subsection (b). Any amounts deducted

from the salary or wages of such state employee pursuant to such au-

thorization shall be subject to the maximum and minimum amounts es-

tablished by rules and regulations adopted pursuant to subsection (c).

Any such written authorization may be withdrawn or modified by such

state employee upon filing written notice of such withdrawal or modifi-

cation in the manner and at the times prescribed in rules and regulations

adopted pursuant to subsection (c).

(b) The director of accounts and reports shall establish a payroll de-

duction plan for the purchase of United States savings bonds by state

employees. Such plan shall be administered by the director of accounts

and reports in accordance with rules and regulations adopted pursuant to

subsection (c) and such additional accounting procedures as may be pre-

scribed by the director of accounts and reports.

(c) The secretary of administration, upon the recommendation of the

director of accounts and reports, shall adopt rules and regulations as pro-

vided in K.S.A. 75-3706, and amendments thereto, for the implementation

and administration of this act. Such rules and regulations shall include

maximum and minimum limitations on the amounts to be deducted from

the salary or wages of any state employee and provisions for the modifi-

cation or withdrawal of any authorization to make periodic deductions for

the purchase of United States savings bonds under this act.

(d) As used in this act, the term ``state employee'' or ``employee''

means any appointed or elective officer or any employee of the state of

Kansas whose employment is not seasonal or temporary and whose em-

ployment requires at least one thousand (1,000) hours of work per year.

Sec. 7. K.S.A. 75-5531 is hereby amended to read as follows: 75-

5531. As used in K.S.A. 75-5531 to 75-5534, inclusive, and amendments

thereto:

(a) ``State employee'' or ``employee'' means any appointed or elective

officer or any employee of the state of Kansas whose employment is not

seasonal or temporary and whose employment requires at least one thou-

sand (1,000) hours of work per year; and

(b) ``united way organization'' means the organization conducting a

single, annual, consolidated effort to secure funds for distribution to agen-

cies engaged in charitable or, public health, welfare or service purposes,

which commonly is known as the united way. Such term includes the

united fund, the community chest or any other organization which serves

in communities or areas of the state where the united way is not organ-

ized.

New Sec. 8. (a) The governor is hereby authorized and directed to

modify the pay plan for fiscal year 2003 in accordance with this section

and to adopt such pay plan as so modified. The existing pay plan for fiscal

year 2003 shall be modified to authorize and provide for a recruitment,

hiring and retention incentive package by executive directive which may

include salary bonus payments and which shall be targeted to critical and

specific staffing needs for persons employed as physician assistants, ad-

vanced registered nurse practitioners, registered nurses, physical thera-

pists and occupational therapists at department of social and rehabilitation

services facilities and persons employed as registered nurses at a state

veterans' home operated by the Kansas commission on veterans affairs as

described in K.S.A. 76-1901 et seq., and amendments thereto, or K.S.A.

76-1951 et seq., and amendments thereto. The pay plan adopted by the

governor under this section shall be the pay plan for the classified service

under the Kansas civil service act and such pay plan shall be subject to

modification and approval as provided under K.S.A. 75-2938 and amend-

ments thereto.

(b) The provisions of subsection (q) of section 169 of 2002 Senate

Bill No. 517 shall not apply to any salary bonus payments under the re-

cruitment, hiring and retention incentive package prescribed by this sec-

tion that are chargeable to biweekly payroll periods chargeable to the

fiscal year ending June 30, 2003.

New Sec. 9. (a) The director of personnel services shall conduct a

classification and job rate study of all health care professional and para-

professional jobs and job classes under the Kansas civil service act to

compare salaries among comparable jobs and job classes in both public

and private sector entities within the state and within states adjacent to

Kansas. The health care professional and paraprofessional jobs and job

classes under the Kansas civil service act in such classification and job

rate study shall include physician assistants, advanced registered nurse

practitioners, registered nurses, physical therapists and occupational ther-

apists. The director of personnel services shall present a report on the

results of such classification and job rate study, including any estimates

of costs required to implement any findings, to the legislative budget

committee during the interim period prior to the 2003 regular session of

the legislature and to the committee on appropriations of the house of

representatives and the committee on ways and means of the senate at

the beginning of the 2003 regular session of the legislature.

(b) Upon request of the director of personnel services, each public

and private health care facility located in Kansas shall provide salary sur-

vey data for the purposes of the classification and job rate study of all

health care professional and paraprofessional jobs and job classes pre-

scribed by this section. Salary and survey data and other information col-

lected pursuant to this section shall be confidential, shall be disseminated

only for statistical purposes for the purposes of the classification and job

rate study and shall not be disclosed or made public in any manner which

would identify individuals.

Sec. 10. K.S.A. 74-49,115, 75-5521, 75-5523, 75-5524, as amended

by section 10 of 2002 Senate Substitute for House Bill No. 2621, 75-5530

and 75-5531 and K.S.A. 2001 Supp. 75-5525 are hereby repealed.

Sec. 11. This act shall take effect and be in force from and after its

publication in the Kansas register.

Approved May 29, 2002.

Published in the Kansas Register June 6, 2002.


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