Bill > HB2298

This bill creates a new liability reduction fund for the Kansas Public Employees Retirement System (KPERS) by transferring $1 billion from the state's budget stabilization fund. The bill provides a 2% cost-of-living adjustment (COLA) for retirees who retired on or before July 1, 2020 and have been retired for more than 5 years, which will be funded using interest earnings from the new liability reduction fund. The legislation establishes specific guidelines for managing the fund, including investment strategies focused on preserving capital and minimizing investment risks. Additionally, the bill creates a mechanism for annually transferring any employer contribution savings from the state general fund back to the budget stabilization fund, with the goal of maintaining a fund balance between 15-20% of the previous year's state general fund expenditures. The bill also defines specific extraordinary circumstances under which the budget stabilization fund can be accessed, such as natural disasters, significant revenue downturns, or major healthcare emergencies. The purpose of these changes is to strengthen the financial stability of the state's public employee retirement system and provide some financial relief to long-term retirees through the modest cost-of-living increase.

Labor and Employment

https://kslegislature.gov/li/b2025_26/measures/hb2298/