HCS/HBs 1509 & 1510 - This act revises provisions relating to the Kansas City Police and Police Employees' Retirement Systems. The act makes changes which are in compliance with the Internal Revenue Code. The retirement board is required to administer the system in a matter in which it will remain qualified under the IRS. However, the board may not adopt a policy which would impose an increase in contributions to the city without consent of the city and any board policy which contradicts state law will remain valid only until the expiration of the next General Session unless such statutes are amended. A member's benefit shall be 100 percent vested and nonforfeitable upon attainment of normal retirement age, which is specified. Distributions of benefits must begin by April 1 in the year following when the member reached 70 1/2 . It also limits benefits and total salary taken into account for any purpose for any member pursuant to IRS regulations. The board is authorized to change actuarial assumptions. Members may make eligible rollovers from the plan. The board is also authorized to purchase fiduciary liability insurance.

This act allows members with at least 26 years of service to receive an optional distribution under a partial lump-sum option plan. Requirements to make the election are provided. The method for calculating the amount of the lump sum distribution is provided. If a member chooses a lump sum distribution the base pension amount will be reduced according to the provisions in the act.

Portions of this act are similar to HCS/SB 961 (TAT)(2002).
CINDY KADLEC