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HB 2194

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.

2025-2026 Regular Session Introduced by Leah Howell and 1 co-sponsor

HB 2194 exempts KPERS employer contributions for retirees returning as certificated teachers, cutting district costs but boosting KPERS unfunded liability and future rate needs.

Died in Committee
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Bill Summary · HB 2194

Summary — HB 2194 (Kansas, 2025)

Title: Providing a KPERS working-after-retirement exemption from the employer contribution rate for retirants employed as teachers by a school district in positions requiring a teaching certificate

Main purpose

HB 2194 would amend K.S.A. 2024 Supp. 74-4914 to create a new exemption from the Kansas Public Employees Retirement System (KPERS) “working after retirement” employer contribution requirement. Specifically, the bill would exempt KPERS employer contributions for retirants who return to work as certificated teachers for a school district (positions that require a teaching certificate).

Key provisions

  • Adds a targeted exemption so that when a KPERS retirant is employed by a school district in a position requiring a teaching certificate, the participating employer (the school district) would not be required to pay the KPERS employer contribution rate on that retirant’s compensation under the working-after-retirement rules.
  • Leaves other working-after-retirement rules and exceptions intact except as modified by this new exemption.
  • Amends K.S.A. 2024 Supp. 74-4914 and repeals the existing section as necessary to reflect the change.

Who is affected

  • Retired KPERS members who return to work as certificated teachers: they would continue to receive retirement benefits while working, and their employing school district would no longer remit the KPERS employer contribution for that service.
  • School districts (participating employers): would experience reduced employer contribution obligations for such rehired retirants.
  • KPERS and current active/paying employers: KPERS would experience reduced contribution inflows, which would reduce assets and increase the system’s unfunded actuarial liability (UAL); that could raise required future employer contributions systemwide over time to amortize the increased UAL.
  • State/local budgets: near-term savings for affected school districts; potential long‑term fiscal effects for employers contributing to KPERS.

Fiscal impact (from Division of the Budget / KPERS actuary)

  • Administrative costs: negligible. KPERS staff would need to update systems and publications; no additional staff or material cost expected.
  • Estimated reduction in employer contributions to KPERS: between $7.0 million and $9.0 million per year beginning in FY2026 (analysis based on KPERS December 31, 2023 valuation and data for School Group members working after retirement). If all working-after-retirement School Group members were teachers, the upper estimate is approximately $9.0 million.
  • Long-term actuarial effect: decreased contribution inflows would reduce market and actuarial asset values and increase the UAL; the lost annual revenue would require additional future employer contributions to amortize the additional UAL.
  • The fiscal effects are not reflected in the FY2026 Governor’s Budget Report.

Procedural / timeline

  • Introduced: January 29, 2025 (by Representatives Howerton and Howell).
  • Amends: K.S.A. 2024 Supp. 74-4914.
  • Committee hearing: House Committee on Financial Institutions and Pensions — Friday, February 14, 2025, 9:00 AM, Room 218‑N.
  • Related/companion measures noted: HB 1485, HB 2220.

Notes / considerations

  • The fiscal estimate is based on available aggregate data for School Group members working after retirement; the actuary cannot isolate certificated teachers in the dataset, hence the estimated range.
  • While the bill provides immediate employer savings for affected school districts, the long-term pension funding consequences (higher UAL and possible future employer rate pressure) should be weighed in policy deliberations.

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

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