SB 115 – This act modifies provisions relating to the Public School Retirement System of Kansas City. This act requires that any formulas and tables in effect upon which the computation of actuarial equivalent is based be maintained as part of a written document and treated as part of the plan document. The formulas and tables may be changed if recommended by the system's actuary and upon approval of the board of trustees. (Section 169.270)
This act provides that the retirement system is intended to be a qualified plan. The Board of Trustees must interpret statutes governing the system and administer the system consistent with a qualified plan. The system's assets must be held in trust for the exclusive benefit of the members and beneficiaries and for defraying reasonable administrative costs. No part of the system's assets may be used or diverted to any purpose other than benefits or purpose of the system. (Section 169.280)
If the retirement system is completely terminated or contributions to the system are discontinued, the rights of all members to benefits accrued to such date, to the extent funded, will be fully vested and non-forfeitable.
For a member who leaves employment with an employer in the retirement system to perform qualified military service and dies during such service, the retirement system must count the qualified military service as creditable service for purposes of vesting. Qualified military service in this circumstance will not be counted as creditable service for purposes of benefits. (Section 169.301)
A retired member of the system who performs substitute, part-time, or temporary employment for an employer in the system cannot earn more than fifty percent of the annual salary or wages he or she was last paid by the employer prior to retirement and receiving a retirement allowance. If a person exceeds these limits, his or her retirement allowance will be suspended for the month in which the limit was exceeded and any subsequent month in the school year the person receives remuneration from any employer in the retirement system. (Section 169.324)
Any member or beneficiary who is entitled to receive a distribution that is an eligible rollover distribution under federal law may elect to have that distribution transferred to another eligible retirement plan. An eligible rollover distribution will include a distribution to a nonspouse beneficiary that is treated as an eligible rollover distribution. These transfers must be made in compliance with the Internal Revenue Code. (Section 169.328)
This act is substantially similar to HB 229 (2011), SB 938 (2010), HB 2221 (2010) and is similar to provisions also contained in SS/HCS/HB 2357 (2010), HCS/SS/SCS/SB 580 (2010), and SS/SB 714 (2010).
MICHAEL RUFF