SB 215 Modifies the Kansas City police retirement systems
Sponsor: Silvey
LR Number: 1107S.01I Fiscal Note available
Committee: Seniors, Families and Pensions
Last Action: 3/5/2013 - Hearing Conducted S Seniors, Families and Pensions Committee Journal Page:
Title: Calendar Position:
Effective Date: August 28, 2013

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Current Bill Summary


SB 215 - This act modifies provisions of the police retirement system of Kansas City and the civilian employees' retirement system of the police department of Kansas City.

POLICE RETIREMENT SYSTEM OF KANSAS CITY

The act creates a two tier retirement system where Tier I consists of those who became members prior to August 28, 2013, and Tier II consists of members who joined on or after August 28, 2013.

FINAL COMPENSATION

For members of Tier I the average compensation shall be calculated by averaging the highest two years of service, but only compensation obtain during the time in which a member made contributions will be included in the computation.

For Tier II members final compensation shall be computed by averaging the highest three years of annual compensation, and only compensation earned during periods of contributions will be included in the computation.

CITY CONTRIBUTIONS

The act provides that the city's contribution shall be what is necessary to meet actuarial required contributions plus two hundred dollars per month for members entitled to receive supplemental benefits.

PAY DEDUCTIONS

The act states that a member who is accruing creditable service shall have a percentage of compensation deducted to contribute to the member's pension fund. The act removes a provision that requires the compensation deduction to be less than six percent.

CREDITABLE SERVICE

The act provides that no creditable service shall be awarded for times when the member was not making contributions, except in situations where a member is on leave for military service.

Members who are in active service on or after August 28, 2013, may accrue up to thirty-two years of credible service.

Members who are on leave of absence for military service may not accumulate creditable service for unpaid military leave exceeding five years, except in limited situations authorized by federal law.

RETIREMENT AGE AND BASE PENSION

Currently, members may retire after twenty-five years of creditable service and must retire after thirty years of creditable service. This act repeals the mandatory retirement after thirty years provision.

The act also provides that the pension of Tier I members retiring on or after August 28, 2013, shall not exceed eighty-percent of the member's final compensation.

Tier II members may retire after twenty-seven years of creditable service, and the base pension shall be two and one-half percent of a member's final compensation multiplied by the number of years of total creditable service. As with Tier I members, Tier II members' pensions shall not exceed eighty-percent of the member's final compensation. Tier II members may also elect a seventy-five or one hundred percent optional benefit which allows a member's spouse to receive the pension after the member's death.

If a Tier II member is terminated prior to death or retirement and has at least fifteen years of creditable service, then the member may elect to receive a base pension beginning on the first day of the month following the turning of age sixty.

The act states that any member convicted of a felony prior to separation from active service shall not receive retirement benefits, except for the contributions made by the member.

RETIREMENT BASED ON DISABILITY

A member who must retire due to a job related illness or injury on or after August 28, 2013, shall receive eighty percent of the final compensation as a base pension. The base pension may be reduced under workers' compensation law.

PARTIAL LUMP SUM OPTION PAYMENT

Under the act, Tier II members can be eligible for a partial lump sum option plan. For those who choose the partial lump sum option, the normal pension will be reduced as defined in the act.

COST-OF-LIVING ADJUSTMENTS

The act specifies that Tier II members are eligible for a cost-of- living adjustment the year following retirement when the retired member has at least thirty-two years of service, or the year following the year in which the member would have had thirty-two years of service if the member had remained in active service.

Tier II members who retire due to disability caused by performance of duty will receive a cost of living adjustment the year following retirement. Cost of living adjustments for those who retired due to disability not caused by duty performance will be made the year following the fifth year of retirement or the year following the year when the member would have attained thirty-two years of service had the member remained in active service, whichever is earlier.

The act also modifies certain provisions relating to cost-of-living adjustments for surviving spouses of Tier II members.

SUPPLEMENTAL BENEFIT TIER II

The act provides that eligible Tier II members may receive a supplemental retirement benefit of two hundred dollars per month.

SURVIVING SPOUSE BENEFIT

The surviving spouse of Tier II members who have not elected an optional annuity shall be entitled to a base pension payable for life, which will be equal to fifty percent of the member's base pension.

VESTED

A Tier II member's benefit shall be completely vested upon the earlier of completion of twenty seven years of service or age sixty with the completion of fifteen years of creditable service.

CIVILIAN EMPLOYEES' RETIREMENT SYSTEM

The act creates a two tier retirement system for civilian employees. Tier I consists of those who became members prior to August 28, 2013, and Tier II consists of members who joined on or after August 28, 2013.

Members who are on leave of absence for military service may not accumulate creditable service for unpaid military leave exceeding five years, except in limited situations authorized by federal law.

The act provides that the age of normal retirement for Tier II members is sixty-seven or upon the twentieth anniversary of employment.

Tier II members may elect early retirement beginning at age sixty-two if they have five years of creditable service, but benefits will be reduced. Tier II members may also retire early after twenty years of creditable service at age sixty-two with no computation reduction of benefits. Also, at age fifty-five if the total of years of service and age equals of exceeds eighty, and the member is at least fifty-five.

A Tier II member's benefit shall be completely vested upon completion of twenty years of service or age sixty seven, whichever is later. A Tier II member can also be vested when the sum of age and years of creditable service equals eighty, and the member has reached the age of fifty-five.

These provisions are identical to provisions contained in the truly agreed to and finally passed HCS/HB 418 (2013) and SS 2/SCS/HB 116 (2013).

JESSICA BAKER