This bill establishes the Liability Reduction Fund within the Kansas Public Employees Retirement System (KPERS) and allocates $1 billion from the budget stabilization fund to this new fund. The primary purpose of the Liability Reduction Fund is to reduce the unfunded actuarial liability of KPERS. A portion of the interest earnings from this fund will be used to provide a 2% cost-of-living adjustment to retirees who retired on or before July 1, 2020, effective from July 1, 2025. The bill also outlines the management and investment responsibilities of the board of trustees of KPERS regarding the fund, ensuring that all expenditures are made in accordance with legislative appropriations.

Additionally, the bill amends existing law regarding the budget stabilization fund, specifically changing the date for certain provisions and establishing new requirements for the expenditure and transfer of funds. It repeals the previous section of K.S.A. 2024 Supp. 75-6706 and introduces new guidelines for the management of the budget stabilization fund, including the conditions under which funds can be expended or transferred. The bill emphasizes the need for legislative approval for any expenditures from the budget stabilization fund, particularly in response to extraordinary occasions such as financial emergencies or significant downturns in state revenues.

Statutes affected:
As introduced: 74-4907, 74-4901, 75-6706