Increasing the amount of retirant compensation subject to the statutory employer contribution rate to the first $50,000 of compensation earned by a retirant in a calendar year and for a period commencing July 1, 2023, and ending December 31, 2024, requiring participating employers to pay only the statutory employer contribution rate on all compensation of a retirant employed in a covered position.
Impact
This change in law serves to encourage retired public employees to return to work without jeopardizing their retirement benefits. By eliminating the earnings limitations for a designated time frame and extending employer contributions to a higher threshold, the bill aims to attract experienced retirees back into the workforce where vacancies exist, especially in critical positions that struggle to find skilled professionals.
Summary
House Bill 2195 aims to amend laws surrounding the Kansas Public Employees Retirement System, particularly focusing on regulations related to re-employment of retirants. The bill requires that participating employers contribute only the statutory employer contribution rate on all compensation of a retirant employed in a covered position for a specified period starting from July 1, 2023, until December 31, 2024. Furthermore, the bill increases the threshold of compensation that determines the statutory employer contribution rate applicable to retirants, raising the limit from $25,000 to $35,000 in a calendar year.
Contention
Notably, the bill seeks to navigate the fine balance between encouraging re-employment and preserving the integrity of the retirement system. Critics may argue this could lead to potential abuse of the retirement system, where individuals may retire temporarily to benefit from the increased contributions while still earning a significant income through re-employment. Local governments and school districts may express concerns about the financial implications and the effectiveness of these policies in improving workforce availability.
Providing a KPERS working after retirement exemption from the employer contribution rate for retirants who are employed as teachers by a school district in a position for which a certificate to teach is required.
Reducing the required waiting period for employment of KPERS retirants hired by a school district for a covered position that requires a teaching license or certificate.
Retirement: county employees; employment of retirant in a county sheriff's office; allow without forfeiting retirement allowance. Amends sec. 12a of 1851 PA 156 (MCL 46.12a).