Labor & Employment (Retirement Benefits)

HB 2649 establishes the Kansas Empowerment Savings Program, allowing eligible state employees and workers at small Kansas employers without existing retirement plans to automatically contribute to Roth or traditional IRAs through payroll deductions. It creates a board within the state treasurer’s office to manage the program, with specific eligibility rules requiring employees to work at least 90 days for an employer that hasn’t offered a qualified retirement plan (like 401(k)s) in the past two years. The program will fund contributions via payroll deduction, with the board overseeing investments and administrative rules while prohibiting conflicts of interest. The law takes effect July 1, 2027, and applies directly to participating employees and their eligible employers.

SB 282 creates the Kansas Retirement Investment and Savings Plan (KRISP), a new defined contribution retirement plan for most Kansas public employees hired on or after July 1, 2027. It establishes individual investment accounts for members, includes optional Roth-style savings contributions, and requires participation in a deferred compensation plan unless employees opt out. The plan applies to new hires and existing employees who choose to switch, but excludes current members of the police/fire retirement system, judges' system, and those already enrolled in the existing defined benefit plan before July 2027. KRISP operates alongside, but separately from, Kansas' current retirement systems and becomes effective January 1, 2028.

SB 202 transfers all current and future teachers in Kansas from the KPERS 3 retirement plan (established in 2015) to the older KPERS 2 plan (established in 2009). It affects all teachers, including those currently enrolled in KPERS 3, with the transfer automatic on January 1, 2026, and new teachers hired on or after July 1, 2025, starting directly in KPERS 2. The bill ensures teachers retain all prior service credit and benefits under the new plan, with no reduction in benefits compared to their previous plan, and employer contributions will offset the administrative costs of the transfer.

HB 2129 transfers all Kansas teachers from the KPERS 3 retirement plan (2015) to the KPERS 2 plan (2009). It defines "teacher" broadly to include certified school staff and college instructors, requiring all new teachers hired on or after July 1, 2025, to join KPERS 2 immediately. Existing teachers will automatically transfer to KPERS 2 on January 1, 2026, with all prior contributions and service credits preserved, and guaranteed benefits not reduced. The bill ensures no loss of rights or benefits during the transition, with employer contributions offsetting transfer costs. This affects all K-12 and community college teachers under KPERS.