According to the Associated Press, Brownback mentioned a Kansas commission’s proposal for the new public worker retirement plan during his annual State of the State address on Wednesday. He said the 401(k)-style plan for new hires would move the state away from having an unsound public pension system. (See Commission to Recommend DC Plan for Kansas State Workers).
The Kansas Public Employees Retirement System projects an $8.3 billion gap between anticipated revenues and benefits promised to workers through 2033. Its traditional plans guarantee benefits up front, based on a worker’s salary and years of service, rather than tying them to investment earnings.