Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Adam Proffitt, Director Laura Kelly, Governor


March 22, 2021


The Honorable Steven Johnson, Chairperson
House Committee on Insurance and Pensions
Statehouse, Room 276A-W
Topeka, Kansas 66612
Dear Representative Johnson:
SUBJECT: Fiscal Note for HB 2198 by House Committee on Insurance and Pensions
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2198 is
respectfully submitted to your committee.
HB 2198 would allow certain local government correctional employees to become
members of the Kansas Police and Firemen’s Retirement System (KP&F). Currently, these
employees are part of the Kansas Public Employees Retirement System (KPERS) Local Group.
The provisions would apply to detention deputies, corrections officers, detention officers and
jailers as defined in the bill.
KPERS estimates HB 2198 would have an actuarial effect on KP&F. However, the fiscal
effect cannot be estimated as the number of local employees who would move from KPERS to
KP&F is unknown. The agency does not have position description information of local
government members to be able to discern how many members would be eligible for KP&F.
Additionally, KPERS notes the bill would allow the election of KP&F coverage to be voluntary.
Nevertheless, the number of employers who are not currently affiliated with KP&F but would
choose to do so cannot be estimated. KPERS indicates any change to the KP&F actuarial required
contribution rate would have to be paid by all KP&F employers. Because KP&F uses a single
uniform rate for both state and local employers, HB 2198 has the potential to affect contributions
for KP&F state agencies. KPERS notes that increasing the number of KP&F active members
would result in a high total covered payroll. As a result, the unfunded actuarial liability (UAL)
rate (dollar amount of the UAL payment divided by covered payroll) is expected to decline.
While KPERS does not have the data to determine precisely how many members would be
eligible to become KP&F members, it is estimated that the number of employees would be large.
The agency indicates the bill would require additional expenditures totaling $410,337, all from the
The Honorable Steven Johnson, Chairperson
Page 2—HB 2198

KPERS Trust Fund. This figure includes $130,337 for 2.00 new FTE positions to provide
transition and ongoing support to local employers and members. The total also includes $280,000
to make upgrades across several database systems. Any fiscal effect associated with HB 2198 is
not reflected in The FY 2022 Governor’s Budget Report.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Jarod Waltner, KPERS
Wendi Stark, League of Municipalities
Jay Hall, Association of Counties
Randy Bowman, Corrections