Senate Committee advances two retirement billsDebbie Dyche
Senate Financial Institutions and Insurance on Thursday advanced two working after retirement bills that will likely be the subject of conference committee deliberations later this session.
Committee members amended SB 138, which exempts KPERS licensed school retirees from the working after retirement earnings limitation, to create a new working after retirement subsection for those who retire on or after Jan. 1, 2018. If those retirees are under age 62, they would have to wait 180 days before they could return to work for a KPERS employer. If they are 62 or over, the retirees would have to wait 60 days before returning to KPERS employment.
Retirees who are hired into a KPERS covered position would have no earnings limitation. Their employer would pay a 30 percent surcharge. Those hired into a non-covered position would have no earnings limit and there would be no employer surcharge requirement.
The amended bill eliminates the special hardship exemption in current law. Additionally, it removes all references to substitute teachers in the law, making them non-covered employees for KPERS purposes.
The committee also advanced HB 2268, which previously passed the House of Representatives. That bill makes numerous changes to the KPERS working after retirement rules and earnings limitations.
Committee chair Sen. Jeff Longbine said he intends to discuss the provisions of SB 138 after it passes the Senate and those in HB 2268 and arrive at a simplified bill more closely resembling SB 138 as amended and passed out of committee while protecting the KPERS fund and assuring compliance with IRS regulations.