Kansas Gov. Laura Kelly signed into a law a bill that will provide contributions totaling $1.125 billion this year to the $26 billion Kansas Public Employees Retirement System, Topeka.
The bill, signed by Ms. Kelly on May 12, provides for additional contributions from the state general fund, which include $253.9 million in delayed contributions from fiscal years 2017 and 2019.
According to a summary of the legislation on the KPERS website, the Kansas Legislature in 2016 had delayed $64 million in contributions for FY2017 and $194 million for FY2019, for which the state had scheduled annual payments of $6.4 million and $19.4 million, respectively, with interest for 20 years.
KPERS Executive Director Alan D. Conroy said in a Feb. 10 memo to the state Senate Ways and Means Committee that the immediate payments on those delayed contributions will save the state of Kansas about $172 million in interest costs over 17 years.
The total contributions, which include the remaining $871.1 million, will be made in four payments: $553.9 million on the effective date of the bill, $300 million on June 1, $146.1 million on Aug. 1 and $125 million on Dec. 1.
According to KPERS' most recent available actuarial valuation report, the pension fund had a funding ratio of 72.5% as of Dec. 31, 2020.
The bill, SB 421, had passed the state House of Representatives 106-10 on March 31 and the state Senate 26-10 on April 28.
The pension fund said in a statement emailed by KPERS spokeswoman Kristen Basso that the state will save $464 million in employer contributions over the next five years as a result of the contributions made this year.