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Kansas2026Passed Legislature

HB2086

Proposed Changes to KPERS Plan 3 Dividend Interest Credits

Last scannedAug 24, 2026, 9:52 AM

In one sentence

This bill proposes changing how extra interest is calculated for some Kansas public employee retirement accounts by lowering the return threshold and increasing the share of returns given as a credit.

What it does

  • Lowers the investment return threshold from 6% to 5% before extra credits are earned on assets above that amount.
  • Increases the dividend share used in calculations from 75% to 80% for calendar year 2024 and all years after.
  • Updates the law governing how interest is added to annuity savings accounts and retirement annuity accounts by amending K.S.A. 74-49,306 and 74-49,308.

Who it affects

  • Members of the Kansas Public Employees Retirement System (KPERS) Plan 3 with an account balance when credits are posted.
  • The KPERS Board responsible for determining average net rates of return

Limits and unknowns

  • This bill died in a Senate committee and did not become law.
  • No effective date is listed because the legislation was not finalized by all required steps.
  • The text does not specify how much money individual members will receive.

Plain language

Terms to know

Dividend interest credit
Extra money added to a retirement account based on how well the system's investments perform above a specific threshold.
Threshold
The minimum investment return rate (5%) that must be reached before extra credits are calculated under this proposal.

Official record

Sources

Validated
Official bill pageIntroduced textOfficial digestCurrent bill textStored full record

Official summary

Adjusting the KPERS 3 dividend interest credit by lowering the dividend interest credit threshold to 5% and increasing the dividend share to 80%.

Official activity

Bill history

  1. Died in Senate CommitteeSenate
  2. Hearing: Thursday, March 6, 2025, 9:30 AM — Room 546-S eventSenate
  3. Referred to Senate Committee on Financial Institutions and InsuranceSenate
  4. Received and IntroducedSenate
  5. Final Action - Passed; Yea 116, Nay 5, Absent 4House
  6. Committee of the Whole - Be passedHouse
  7. Committee Report recommending bill be passed by House Committee on Financial Institutions and PensionsHouse
  8. Hearing: Wednesday, February 5, 2025, 9:00 AM — Room 582-N eventHouse
  9. Referred to House Committee on Financial Institutions and PensionsHouse
  10. IntroducedHouse