TOPEKA, Kan. (AP) — Public employee groups in Kansas have misgivings about a legislative proposal unveiled Friday for overhauling the state pension system, even though it backs away from starting a 401(k)-style plan for new teachers and government workers.
Details of the proposal were unveiled during a meeting of the House Pensions and Benefits Committee by Chairman Mitch Holmes, a St. John Republican. Its key feature is a new retirement plan for public employees hired starting in 2014, one designed to limit financial risks both for the state and the workers. The committee is expected to debate it next week.
The Kansas Public Employees Retirement System projects an $8.3 billion shortfall between anticipated revenues and benefits promised to employees through 2033. That's led some Republican legislators and GOP Gov. Sam Brownback to advocate moving to a 401(k)-style plan for new hires and away from traditional KPERS plans that provide benefits based on a worker's salary and years of service.
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