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HB 2129

Exchange of items on roadways; ability of localities to prohibit.

2025 Regular Session Introduced by Paul Milde

HB 2129 moves most Kansas public school teachers from KPERS Tier 3 (2015) to Tier 2 (2009), effective Jan 1, 2026; new hires after 7/1/2025 join Tier 2; employer costs rise.

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Bill Summary · HB 2129

Summary — HB 2129 (Kansas): Transfer teachers from KPERS Tier 3 (2015 plan) to KPERS Tier 2 (2009 plan)

Purpose

HB 2129 would move most public school teachers from the KPERS 2015 cash‑balance plan (often called Tier 3) into the KPERS 2009 plan (Tier 2) for prior and future service, and would define who qualifies as a “teacher” for KPERS purposes. The stated legislative intent is to continue review of KPERS plan design and make changes as necessary following the 2024 KPERS review.

Key provisions

  • Definition: “Teacher” = any professional employee required to hold a teaching certificate in a school district and any teacher/instructor in a technical college or community college.
  • New hires: Any teacher first employed by a participating employer on or after July 1, 2025, would be a member of the KPERS 2009 (Tier 2) plan.
  • Conversion date: On January 1, 2026, all active and inactive teacher members enrolled in the KPERS 2015 (Tier 3) plan would be transferred to the KPERS 2009 (Tier 2) group.
  • Protection: If a current Tier 3 member would receive a higher benefit under Tier 3 at the time of transfer than under Tier 2, that member would remain in Tier 3.
  • Contributions/costs: The cost of the transfer is to be paid from employer contributions; members would bear no cost. Employer contributions and interest may be used by KPERS to offset transfer costs.
  • Administrative authority: KPERS Board of Trustees to execute the transfer and ensure federal qualification requirements are maintained.

Fiscal and actuarial impacts (KPERS / Division of the Budget estimates)

  • One‑time IT/system update costs: ~$1.0 million (KPERS Trust Fund) in FY2026 for technical changes and testing (6 months).
  • Temporary staffing: 5 temporary positions (2 Benefits Representatives, 3 Benefit Analysts). Salary/benefit costs estimated at $373,158 (FY2026) and $389,211 (FY2027).
  • Actuarial liability: Moving Tier 3 teacher members to Tier 2 increases unfunded actuarial liability (UAL) by roughly $220.0 million (amortized over 20 years in the actuary’s estimate).
  • Contribution rates: Normal cost increase of 0.42% and UAL amortization increase of 0.31% for the State/School group — total increase of 0.73 percentage points (from 11.68% to 12.41%), beginning FY2026.
  • Estimated employer contribution increases: ~$43.0 million (FY2026) and ~$44.0 million (FY2027) for the State/School group; ~85% of that is estimated to be funded from the State General Fund (~$36.6M FY26; $37.4M FY27).
  • Option noted: A one‑time State General Fund appropriation of ~$220M to pay the UAL in FY2026 would eliminate the 0.31% amortization increase but leave the 0.42% normal cost increase (resulting employer contribution ~12.1%; ~ $24.8M increase FY2026, ~ $21.1M SGF).

Administrative and operational impacts

  • KPERS must perform extensive data collection (position/teacher status not currently tracked), major pension system changes to calculate Tier 2 benefits, compare member outcomes (to honor protection clause), and provide member education and outreach.
  • The number of affected members is uncertain; KPERS estimates ~43,593 teachers statewide with ~19,096 currently Tier 3 (estimate excludes inactive members who would convert).

Who is affected

  • Primary: Active and inactive public school teachers and community/technical college instructors as defined in the bill.
  • Employers (school districts, technical/community colleges, state): increased employer contribution obligations and administrative responsibilities.
  • State General Fund exposure: substantial share of increased employer contributions likely borne by SGF unless offset.

Timeline & procedure

  • Introduced: January 28, 2025.
  • Committee hearing: February 5, 2025 (House Committee on Financial Institutions and Pensions).
  • Conversion effective dates: new hires on/after July 1, 2025 placed in Tier 2; mass transfer of existing teachers effective January 1, 2026.

Uncertainties / notes

  • KPERS does not currently track “teacher” position data; exact counts (including inactive members) and resulting costs could differ from estimates.
  • Behavioral effects (recruitment or retention changes) are possible but not quantified in the fiscal note and are not reflected in the cost estimates.

Compiled from official sources — confirm details with the bill’s official record.

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