Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 larry.campbell@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Larry L. Campbell, Director Laura Kelly, Governor


February 20, 2019


The Honorable Robert Olson, Chairperson
Senate Committee on Financial Institutions and Insurance
Statehouse, Room 236-E
Topeka, Kansas 66612
Dear Senator Olson:
SUBJECT: Fiscal Note for SB 200 by Senate Committee on Federal and State Affairs
In accordance with KSA 75-3715a, the following fiscal note concerning SB 200 is
respectfully submitted to your committee.
Under current law, a Kansas Police and Firemen’s Retirement System (KP&F) member’s
retirement benefit cannot exceed 90.0 percent of the member’s final average salary. SB 200 would
increase the cap on benefits to 95.0 percent of the member’s final average salary.
Currently, the KP&F employee contribution rate is 7.15 percent. SB 200 would reduce the
employee contribution rate to 2.0 percent for members who reach 38 years of service. Members
who contributed 7.15 percent between July 1, 2013 and July 1, 2019 would receive a refund of the
difference in contributions between 2.0 percent and 7.15 percent. Members who retired after July
1, 2018 and contributed 7.15 percent after reaching 38 years of service would have his or her
benefit recalculated based on the 95.0 percent cap.
KPERS indicates that the bill would change the benefit plan design for KP&F members,
which would result in a higher cost to fully fund benefits. The cost increases would be funded by
increases to KP&F employer contributions. KPERS estimates that the bill would increase the
KP&F unfunded actuarial liability by $2.2 million. The increase in benefits plus the increase in
the KP&F unfunded actuarial liability would increase the KP&F contribution rate by 0.05
percentage points. SB 200 would require additional contributions from both state and local KP&F
employers totaling approximately $254,000. The additional employer contributions would begin
in FY 2020 for state KP&F employers and in CY 2020 for local KP&F employers.
The Honorable Robert Olson, Chairperson
Page 2—SB 200

KPERS estimates the bill could be implemented within existing operating expenditures.
Any fiscal effect associated with SB 200 is not reflected in The FY 2020 Governor’s Budget
Report.


Sincerely,

Larry L. Campbell
Director of the Budget


cc: Jarod Waltner, KPERS


Statutes affected:
As introduced: 74-4958, 74-4958a, 74-4965