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 the investments are made prudently and in the best interest of the fund.

Additionally, the bill amends existing law regarding the budget stabilization fund, specifically changing the conditions under which funds can be expended or transferred. It specifies that, starting July 1, 2025, no funds from the budget stabilization fund can be used without legislative approval, except for the transfer of $1 billion to the Liability Reduction Fund. The bill also repeals a previous section of law related to the budget stabilization fund, streamlining the process for managing state funds in response to extraordinary occasions. Overall, the legislation aims to enhance the financial stability of the Kansas public employees' retirement system while ensuring responsible management of state funds.

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