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
Adam Proffitt, Director Laura Kelly, Governor


January 28, 2021


The Honorable Sean Tarwater, Chairperson
House Committee on Commerce, Labor and Economic Development
Statehouse, Room 151D-S
Topeka, Kansas 66612
Dear Representative Tarwater:
SUBJECT: Fiscal Note for HB 2041 by Representative Carmichael
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2041 is
respectfully submitted to your committee.
HB 2041 would amend workers compensation law related to workers compensation
benefits and retirement benefits. Under current law, if an employee receives retirement benefits
from federal social security or any other retirement plan provided by an employer, any workers
compensation benefit payments the employee is eligible to receive are reduced by the weekly
equivalent amount of total retirement benefits. The bill would specify that if an employee begins
receiving federal social security retirement benefits after a work-related accident, any workers
compensation benefits for permanent disability would be reduced by the weekly equivalent amount
of the federal social security retirement benefits. Likewise, if an employee begins receiving
employer-funded retirement benefits after an accident for which a claim is brought against the
employer, any workers compensation benefits for permanent disability would be reduced by the
weekly equivalent amount of the total amount of the retirement benefits. No portion of employer
retirement plan benefits attributable to employee contributions would be subject to reduction.
Whether the employee receives retirement benefits under the federal Social Security Act
or through any other retirement plan, the workers compensation benefits for permanent disability
would not be less than the workers compensation benefit payable for the employee’s percentage
of functional impairment.
According to the Kansas Department of Labor, HB 2041 would have no fiscal effect on the
Workers Compensation Program. The Department of Administration estimates the bill would
increase expenditures for the State Self Insurance Fund by $30,000 in FY 2022. The Department
notes that changing applicability of retirement benefits to “any workers compensation benefits for
The Honorable Sean Tarwater, Chairperson
Page 2—HB 2041

permanent disability” rather than “any compensation benefit payments” would reduce the claims
in which retirement benefits could be used in place of workers compensation payments from the
State Self Insurance Fund. The Department of Administration estimates expenditures would
increase to $30,390 in FY 2023. Any fiscal effect associated with HB 2041 is not reflected in The
FY 2022 Governor’s Budget Report.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Dawn Palmberg, Department of Labor
Jeff Scannell, Department of Administration


Statutes affected:
As introduced: 44-501