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Retired Employees Association News

April 2012 Update

Retired Employees Association members Ernie Claudel and Ron Gardner also serve on the Kansas Coalition of Retired Employees, www.ksretirees.org, and provide updates on action in the Kansas Legislature that may affect district retirees.

They said the coalition has established a Facebook page and Claudel is also on Twitter at @eclaudel1 for those who wish to follow their updates.

The Senate Select Committee on Kansas Public Employees Retirement System (KPERS) will meet April 29, just a few days after the Legislature returns from its spring break.

Claudel and Gardner said the House Substitute for SB259, a not-yet-completed Senate bill, HB2545, and SB338 each cost the state more than HB2194 and provide less benefit for employees. Two state defined-contribution plans have been ignored when including a state contribution of 5 percent in a defined-contribution proposal for those in KPERS.

"In any type of defined contribution plan, the contributions (whether they are individual or employer) must go to the individual employee's fund," they said in the report. "They cannot go to the KPERS trust fund."

Claudel and Gardner encourage KPERS retirees to contact their legislators about bills involving the retirement plan. They suggest asking the following questions:

  • What are the salary replacement projections for employees when they retire?
  • How does that compare to the current plan?
  • How will this plan address the unfunded actuarial liability? Over what time period?
  • What is the increased cost on local employers going to be under the plan?
  • What portion of the investment risk in this plan is shared between the employer and the employee?
  • With such a major concern about the budget, and because all of the purposed bills have a projected cost greater than HB2194, how can legislators consider a more expensive path?

"To move to a defined-contribution plan, which costs $10.9 billion more than the current system, doesn't provide an adequate benefit for KPERS members and does nothing to address the UAL," they wrote in their latest report.

Explanations of the defined contribution and cash balance retirement plans, as well as addresses for the Senate Select Committee on KPERS and other legislators is available on the coalition's website: www.ksretirees.org.

For more information contact Ernie Claudel, eclaudel1@comcast.net, (913) 481-6923 or Ron Gardner, rongardner1811@comcast.net, (913) 782-8175.

September 2011 Update

Retired Employees Association members Ernie Claudel and Ron Gardner provide occasional updates on legislative action affecting retired district employees. The men also serve on the Kansas Coalition of Retired Employees, www.ksretirees.org.

Claudel said the KPERS Study Commission made up of legislative and non-legislative members will meet several times this fall and winter. According to their website, the commission was formed to study the current KPERS retirement system and develop a plan to ensure its long-term sustainability. They're also asked to consider the advantages and disadvantages of implementing a defined benefit, defined contribution, or hybrid contribution retirement plan.

Various testimony and presentation materials, as well as the commission's meeting schedule, are provided on the Kansas Legislative Research Department website, http://skyways.lib.ks.us/ksleg/KLRD/Committees.htm. (Scroll down to the Other Task Forces area to find links to the KPERS Study Commission meeting dates, resources, agenda and minutes.)

Proposed meeting dates are Oct. 25-26, Nov. 7-8 and Dec. 7-8.

For more information contact Ernie Claudel, eclaudel1@comcast.net, (913) 481-6923 or Ron Gardner, rongardner1811@comcast.net, (913) 782-8175.