SENATE BILL No. 509
(Amends Chapter 116)
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-
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
(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
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
(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-
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-
(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.
Date Composed: 10/10/2002 Date Modified: 10/10/2002