KPERS Changes, Deb Haneke (KSSA Talk # 15)

Deb Haneke, CFO, ESSDACKpicture-59-1363280638

Deb joined the ESSDACK staff in 1997.  Before stepping into the role of CFO, Deb provided leadership as the Director of Professional Development.  She received both her undergraduate and graduate degrees from Fort Hays State University.

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2012 Sub House Bill 2333

  • Increases employer contributions
  • Increases current member contributions
  • or possibly decreases benefits
  • Creates a new Tier 3 cash balance retirement plan for new hires beginning January 2015
  • Does not affect KP&F or Judges

Why is there a need for change?

  • For 18+ years, there has been a gap between the actuarial and statutory funding levels
  • Member benefit increases in the ‘90’s were mostly funded through actuarial changes that put off paying for them until later.
  • Recession in 2008 caused unprecedented investment losses.
  • Members are living longer and retiring earlier.

Employer Contribution Increases

  • Part of a shared solution with members
  • Contributions increase faster starting in FY 2014
  • FY 14, 0.9% cap increase
  • FY 16, 1.1% cap increase
  • FY 15, 1% cap increase
  • FY 17+, 1.2% cap increase

Projected Rates

State/School
Year Statutory Actuarial

  • 2013 9.37% 13.46%
  • 2014 10.27% 13.83%
  • 2015 11.27% 14.34%
  • 2016 12.37% 15.34%
  • 2017 13.57% 16.59%
  • 2018 14.77% 16.61%
  • 2019 15.97% 16.62%
  • 2020 16.87% 16.87%
  • 2021 17.06% 17.06%
  • 2022 17.15% 17.15%
  • 2023 17.14% 17.14%

KPERS Tier 1 Changes

  • Member contribution and multiplier increases
  • Tier 1 Changes Contribution Rate Benefit Multiplier
  • Now 4% 1.75%
  • January 1, 2014 5% 1.85%
  • January 1, 2015 and after 6% 1.85%

 KPERS Tier 2 Changes

  • Take effect January 1, 2014
  • Stay at 6% employee contribution rate
  • Increase to1.85% multiplier for all service,  not just future service
  • No longer have a cost-of-living adjustment (COLA)

www.kpers.org/changes

https://essdack.org/pages/employee-benefits-districts

 

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