Transferring $1,000,000,000 from the budget stabilization fund to the liability reduction fund of KPERS, using a portion of the interest earnings of the liability reduction fund to provide a 2% COLA for retirants who have been retired for more than 5 years, transferring annually certain amounts from the state general fund to the budget stabilization fund and establishing requirements for the expenditure or transfer of moneys from the budget stabilization fund.

HB 2298 transfers $1 billion from Kansas' budget stabilization fund to a new liability reduction fund for the Kansas Public Employees Retirement System (KPERS). It uses a portion of the interest earned by this new fund to provide a 2% cost-of-living adjustment to KPERS retirees who retired on or before July 1, 2020, and have been retired for more than five years as of July 1, 2025. The bill also establishes annual transfers from the state general fund to the budget stabilization fund and sets clear rules for when and how money can be spent from that fund.