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


February 9, 2022


The Honorable Steven Johnson, Chairperson
House Committee on Insurance and Pensions
Statehouse, Room 218-N
Topeka, Kansas 66612
Dear Representative Johnson:
SUBJECT: Fiscal Note for HB 2470 by Representative Proctor, et al.
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2470 is
respectfully submitted to your committee.
HB 2470 would have the Department of Corrections as an eligible employer for the Kansas
Police and Fireman’s Retirement System (KP&F) on July 1, 2022, and would make corrections
officers eligible for KP&F members for future service. The bill would give members who move
the ability to purchase KPERS service as KP&F service, which would be a new type of service
purchase available only to this eligible group. For members who would not purchase service but
would vest with both KPERS and KP&F service, the retirement benefit would include a benefit
from both systems based on the years of service in each system.
The KPERS actuary completed a cost estimate for HB 2470. Using data from the
Department of Corrections, approximately 1,600 KPERS members in the Department of
Corrections would be affected by the bill. Moving corrections officers to KP&F would reduce the
overall KP&F employer contribution rate because of the additional $84.0 million in payroll that
these members would add to the KP&F system. The actuary estimates that the overall state KP&F
employer contribution rate would reduce from 22.86 percent to 21.40 percent from this change.
However, the Department of Corrections as an employer would experience an increase in employer
contributions, as this group of employees would move from the rate of 12.99 percent for KPERS
to 21.40 percent for KP&F in FY 2024. Based on its current payroll base for eligible employees,
the actuary estimates additional KP&F retirement contributions of $7.7 million from the State
General Fund beyond its current estimated KPERS FY 2024 employer contributions.
The actuary notes that other state KP&F employers would have a lower employer
contribution rate, which would reduce employer contribution for these agencies by a combined
The Honorable Steven Johnson, Chairperson
Page 2—HB 2470

$821,000 from all funding sources. The overall effect on state expenditures for KP&F employer
contributions would be an increase of $6.8 million from all funding sources. The Division of the
Budget notes that for the overall increase of $6.8 million from all funding sources, amounts by
fund, including the State General Fund, would be dependent on how each of the other state KP&F
agencies are financed.
KPERS notes that the bill would affect the KP&F employer contribution rate for local
employers because of the addition of corrections officers in the overall group. Local government
affiliated KP&F employers would see a reduction in the calendar year 2023 rate from 22.86 percent
to 21.40 percent. A savings dollar amount was not noted by KPERS.
For administrative costs associated with the bill, KPERS estimates that an additional 1.00
FTE position would be required to provide transition and ongoing support to the Department of
Corrections and its facilities and to assist with the designing and testing of the required KPERS
computer systems. The agency estimates that the cost of the position would be $78,274 from the
KPERS Fund, including $53,922 in salaries and wages, and $24,352 for fringe benefits. The
programing changes and updates to the KPERS computer systems would be made within the
agency’s existing operating budget. Any fiscal effect associated with HB 2470 is not reflected in
The FY 2023 Governor’s Budget Report.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Jarod Waltner, KPERS
Randy Bowman, Corrections