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 criteria, benefits, contributions, and distribution processes for the new retirement plan, automatically enrolling employees hired by participating employers after the effective date unless they opt out within a specified timeframe. Certain groups, including members of the Kansas police and firemen's retirement system and judges, are 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 startup costs associated with KRISP.

Additionally, the bill amends existing retirement investment and savings plan provisions by instituting 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. Employers are required to match these contributions and provide additional funding based on member contributions. The bill also details the investment policy, ensuring a variety of investment options and establishing a default investment for members without direction. It outlines distribution options for members post-service and specifies that beneficiaries receive the vested account balance upon the member's death. Furthermore, the bill sets employer contribution rates for the Kansas public employees retirement system (KPERS) for various fiscal years and emphasizes the importance of timely contribution remittance, allowing for penalties on delinquent payments.

Statutes affected:
As introduced: 74-4920