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HB 2130

Relating to setting the rate the Public Employees Insurance Agency shall pay for services

2025 Regular Session Introduced by Geno Chiarelli and 3 co-sponsors

House Bill 2130 allows Kansas public employees to choose biweekly retirement payments starting July 2026, enhancing financial flexibility but increasing employer costs.

To House Finance
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WeVote Research Nonpartisan
Bill Summary · HB 2130

Summary of House Bill 2130 (HB 2130)

Purpose and Intent

House Bill 2130 (HB 2130) aims to amend the Kansas Public Employees Retirement System (KPERS) by allowing members and benefit recipients the option to receive their retirement and disability benefits on a biweekly basis instead of the current monthly payment schedule. This change is intended to provide more flexibility for retirees in managing their finances.

Key Provisions

  • Payment Frequency Change: Starting July 1, 2026, members of KPERS will have the option to elect to receive their benefits either biweekly or monthly.
  • Election Process: Members must make their election within 60 days after receiving their first month's benefit payment. If no election is made, benefits will continue to be paid monthly.
  • Administrative Changes: The bill requires updates to the pension administration system to accommodate biweekly payments, which will incur an estimated cost of $800,000 for system modifications and additional staffing needs.
  • Staffing Needs: KPERS anticipates needing three additional full-time equivalent (FTE) positions to manage the increased payment cycles, with projected costs of $153,426 for FY 2026 and $265,768 for FY 2027.

Financial Implications

  • Actuarial Impact: The shift to biweekly payments is expected to increase the unfunded actuarial liability (UAL) due to earlier disbursement of funds. The estimated UAL increases under various scenarios (50%, 75%, and 100% of retirees opting for biweekly payments) range from approximately $19.9 million to $37.1 million for state groups and $9.2 million to $17.1 million for local groups.
  • Contribution Increases: The bill may necessitate increased contributions from the state and local employers to cover the additional liabilities, with estimated increases ranging from $2.06 million to $3.31 million for state groups and $960,000 to $1.61 million for local groups in FY 2026.

Affected Parties

  • KPERS Members: The primary beneficiaries of this bill are KPERS members and retirees who will have the option to choose their payment frequency.
  • State and Local Employers: Employers participating in KPERS will be affected by potential increases in their contribution rates due to the increased actuarial liabilities.

Procedural Timeline

  • Introduced: January 29, 2025
  • Referred to Committee: The bill was referred to the House Committee on Financial Institutions and Pensions and has undergone various legislative actions, including hearings and discussions.
  • Implementation Date: If passed, the changes will take effect on July 1, 2026.

Conclusion

HB 2130 represents a significant change in how retirement benefits are administered within KPERS, providing members with more flexibility while also introducing potential financial implications for the system and its stakeholders. The bill is currently under consideration in the House Finance Committee.

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

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