Kansas Senate Bill SB238

Kansas 2025-2026 Regular Session

• Filed/Introduced: 8/8/26
• Introduced: 2/6/25
• Refer: 2/7/25

Caption

Providing a postretirement cost-of-living adjustment for certain KPERS 1 and KPERS 2 retirants and making appropriations for fiscal year 2026 for KPERS to pay the actuarial cost of such cost-of-living adjustment.

Summary

SB 238 would provide a one-time postretirement cost-of-living adjustment (COLA) for certain Kansas Public Employees Retirement System (KPERS) retirants, including eligible joint annuitants, beneficiaries, and insured disability benefit recipients. The adjustment would apply to benefit payments accruing after June 30, 2025, and would be tiered based on retirement date: 1% for those retired on or before July 1, 2015; 2% for on or before July 1, 2011; 3% for on or before July 1, 2007; 4% for on or before July 1, 2003; and 5% for on or before July 1, 1999. In all cases, the monthly increase is capped at $100. The bill also appropriates $136.4 million from the state general fund for fiscal year 2026 to KPERS to cover the actuarial cost of the COLA. The appropriation is specifically earmarked for the cost-of-living adjustment payment account and must be used to pay the retirement system’s actuarial cost for the benefit increase. The measure is supplemental to the existing KPERS statutes and would take effect upon publication in the statute book. In terms of state law, SB 238 would amend the operation of KPERS by creating a new statutory COLA for a defined class of retirees and related beneficiaries, while also adding a significant state funding obligation for the 2026 fiscal year. It would affect the retirement benefits of long-retired public employees and certain disability recipients, but only those meeting the bill’s eligibility criteria tied to retirement dates and benefit status. The available context shows no recorded committee transcript, vote history, or formal action, so there is no documented debate or recorded sentiment from legislative proceedings in the provided materials. Based on the bill’s structure, it appears designed to provide targeted financial relief to older KPERS retirees while balancing the cost through a dedicated appropriation. The main point of potential contention is fiscal impact: the bill requires a substantial general fund appropriation, which may raise concerns about budget priorities and the long-term actuarial cost to the retirement system. Support would likely come from retirees and public employee advocates seeking inflation relief, while opposition could come from lawmakers focused on state spending, pension liabilities, or the fairness of granting benefits only to retirees meeting older retirement-date thresholds.

Impact

SB 238 would create a new postretirement COLA for certain KPERS retirees, beneficiaries, and insured disability recipients and would appropriate $136.4 million from the state general fund in FY 2026 to cover the actuarial cost. It would directly affect KPERS administration and the monthly benefit amounts paid to eligible retirants, while adding a new funding obligation in state law tied to the retirement system’s benefit structure.

Sentiment

No committee discussion or vote history is provided, so there is no recorded legislative sentiment in the materials. On its face, the bill appears supportive of retirees by increasing benefits for long-term KPERS recipients, but it also carries a significant fiscal cost that could generate budgetary concern among lawmakers.

Contention

The primary likely contention is the size of the state general fund appropriation and the resulting actuarial cost to KPERS. Supporters would likely emphasize inflation relief and assistance to long-retired public employees, while critics may question the affordability, the impact on the state budget, and the fairness of limiting the COLA to retirees based on retirement date and a $100 monthly cap.