The bill enacts the Kansas Retirement Investment and Savings Plan Act (KRISP), establishing a new retirement plan for public employees in Kansas, effective July 1, 2027. It outlines the membership process, benefits, contributions, and distributions for employees hired by participating employers after this date, who will automatically become members unless they opt out within a specified timeframe. The act creates a defined contribution fund, allows employer contributions to cover costs of the existing defined benefit plan, and directs the pooled money investment board to provide loans for the new plan's startup and administrative costs, pending state finance council approval. Certain groups, such as members of the Kansas police and firemen's retirement system and judges, are excluded from KRISP provisions.

The bill also amends contribution requirements and investment options for active members, mandating a 6% contribution to a mandatory account and an initial 1% to a deferred compensation account, which will increase annually until reaching 10%. Employers must contribute 4% of the member's compensation to their employer contribution account. The bill outlines benefit distribution options upon service termination, establishes a new fund within the state treasury for administration, and sets specific employer contribution rates for the Kansas public employees retirement system (KPERS) for various fiscal years. It mandates electronic remittance of employee deductions and contributions by participating employers and repeals K.S.A. 2024 Supp. 74-4920, with the act taking effect upon publication in the statute book.

Statutes affected:
As introduced: 74-4920