The proposed bill establishes the Kansas Retirement Investment and Savings Plan Act (KRISP), set to take effect on July 1, 2027. It outlines the membership process, benefits, contributions, and distributions for the new retirement plan, mandating that employees hired by participating employers after this date will automatically be enrolled unless they opt out within a designated timeframe. Certain groups, including members of the Kansas police and firemen's retirement system and judges, are explicitly excluded from this plan. The bill also introduces a defined contribution fund, a deferred compensation plan, and grants the pooled money investment board the authority to loan funds for the plan's startup and administrative costs.

Additionally, the bill amends existing laws to establish new contribution requirements, mandating active members to contribute 6% of their compensation to a mandatory account and an initial 1% to a deferred compensation account, which will increase annually until reaching 10%. Employers are required to match these contributions and provide additional funding based on member contributions. The bill outlines various investment options for the retirement plan, including government securities and stock index funds, and establishes a default investment option for members who do not provide direction. It also details distribution options post-employment, clarifies beneficiary determination processes, and sets employer contribution rates for the Kansas public employees retirement system (KPERS) for upcoming fiscal years, while including provisions for timely remittance of contributions and penalties for late payments.

Statutes affected:
As Introduced: 74-4920
As introduced: 74-4920