The Associated Press reports that the bill now goes to the State House where most members of its Republican majority favor moving the state toward a 401(k)-style retirement plan for public employees (see KS House OKs Pension Change Bill).
According to the AP, the compromise bill boosts the state’s annual contributions to the Kansas Public Employees Retirement System, starting in July 2013, phasing in a $28 million annual increase over four years. It requires public employees to choose between paying a higher percentage of their salaries toward their retirement benefits or having their future benefits cut.
The proposal also sets up a commission to study whether the state should move toward a 401(k)-style plan.The Kansas Public Employees Retirement System projects a gap of $7.7 billion between its anticipated revenues and benefits promised to teachers, judges, police, fire fighters and other government workers through 2033, the news report said.
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