Benefits March 28, 2011

KS House OKs Pension Change Bill

March 28, 2011 (PLANSPONSOR.com) – The Kansas State House has approved a bill that would start a new 401(k)-style pension plan for teachers and government workers.
Reported by

The Associated Press reported that the measure, approved on a 68-54 vote Monday, also would cut the future retirement benefits of public employees who don’t join the new plan. The bill requires teachers and government workers hired on or after July 1, 2013, to join the new 401(k)-style plan. Other workers could join, too.

According to the report, the House’s action sends the measure to the Senate, which already has approved its own plan for dealing with long-term funding problems faced by the Kansas Public Employees Retirement System (see Kansas Lawmakers Put Forth More Pensions Proposals).

Senators are wary of moving toward a 401(k)-style plan for public employees, and the final version of pension legislation is likely to be drafted by negotiators for the two chambers. Earlier this month, a House committee tabled the 401(k) conversion bill (see KS House Panel Tables 401(k) Conversion Bill).

«