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Session of 2025
HOUSE BILL No. 2194
By Representatives Howerton and Howell
1-31
AN ACT concerning retirement and pensions; relating to the Kansas public
employees retirement system; providing an exemption from the
working after retirement employer contribution rate for retirants
employed as teachers by a school district in a position for which a
certificate to teach is required; amending K.S.A. 2024 Supp. 74-4914
and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2024 Supp. 74-4914 is hereby amended to read as
follows: 74-4914. (1) The normal retirement date for a member of the
system shall be the first day of the month coinciding with or following
termination of employment with any participating employer not followed
by employment with any participating employer within 60 days, or 180
days as provided in subsection (9), and without any prearranged agreement
for employment with any participating employer, and the attainment of age
65 or, commencing July 1, 1993, age 62 with the completion of 10 years of
credited service or the first day of the month coinciding with or following
the date that the total of the number of years of credited service and the
number of years of attained age of the member is equal to or more than 85.
In no event shall a normal retirement date for a member be before six
months after the entry date of the participating employer by whom such
member is employed. A member may retire on the normal retirement date
or on the first day of any month thereafter upon the filing with the office of
the retirement system of an application in such form and manner as the
board shall prescribe. Such application shall contain a certification by the
member that the member will not be employed with any participating
employer within 60 days, or 180 days as provided in subsection (9), of
retirement and the member has not entered into a prearranged agreement
for employment with any participating employer. Nothing herein shall
prevent any person, member or retirant from being employed, appointed or
elected as an employee, appointee, officer or member of the legislature.
Elected officers may retire from the system on any date on or after the
attainment of the normal retirement date, but no retirement benefits
payable under this act shall be paid until the member has terminated such
member's office.
(2) No retirant shall make contributions to the system or receive
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HB 2194 2
service credit for any service after the date of retirement.
(3) Any member who is an employee of an affiliating employer
pursuant to K.S.A. 74-4954b, and amendments thereto, and has not
withdrawn such member's accumulated contributions from the Kansas
police and firemen's retirement system may retire before such member's
normal retirement date on the first day of any month coinciding with or
following the attainment of age 55.
(4) Any member may retire before such member's normal retirement
date on the first day of any month coinciding with or following
termination of employment with any participating employer not followed
by employment with any participating employer within 60 days, or 180
days as provided in subsection (9), and the attainment of age 55 with the
completion of 10 years of credited service, but in no event before six
months after the entry date, upon the filing with the office of the retirement
system of an application for retirement in such form and manner as the
board shall prescribe. The member's application for retirement shall
contain a certification by the member that the member will not be
employed with any participating employer within 60 days, or 180 days as
provided in subsection (9), of retirement and the member has not entered
into a prearranged agreement for employment with any participating
employer.
(5) For purposes of this section, any employee of a local
governmental unit that has its own pension plan who becomes an
employee of a participating employer as a result of a merger or
consolidation of services provided by local governmental units, that
occurred on January 1, 1994, may count service with such local
governmental unit in determining whether such employee has met the
years of credited service requirements contained in this section.
(6) (a) Commencing January 1, 2018, for all retirements that occurred
prior to such date, any retirant who is employed or appointed in or to any
position by a participating employer, an independent contractor or a third-
party entity who contracts services with a participating employer to fill a
position, without any prearranged agreement with such participating
employer and not prior to 60 days after such retirant's retirement date, shall
not be subject to an earnings limitation that when met or exceeded requires
that the retirant not receive a retirement benefit for any month for which
such retirant serves in such position. If a retirant is employed in a covered
position, as defined in K.S.A. 74-49,202, and amendments thereto, the
participating employer of such retirant shall pay to the system the
statutorily prescribed employer contribution rate on the first $40,000 of
such retirant's compensation in a calendar year and a 30% employer
contribution on any compensation in excess of $40,000 in a calendar year
during any such period of employment. If a retirant is employed by more
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HB 2194 3
than one participating employer or performing duties in more than one
position, contributions shall be made on compensation from all such
employment for that calendar year. If a retirant is employed in a non-
covered position, no employer contribution shall be paid to the system.
(b) The provisions of this subsection shall not apply, except as
specifically provided in this subsection, to retirants who are:
(i) Licensed professional nurses or licensed practical nurses
employed by the state of Kansas in an institution as defined in K.S.A. 76-
12a01(b) or 38-2302(k), and amendments thereto, the Kansas soldiers'
home or the Kansas veterans' home. The participating employer of such
retirant shall pay to the system the actuarially determined employer
contribution based on the retirant's compensation and the statutorily
prescribed employee contribution during any such period of employment;
(ii) employed by a school district in a position as provided in K.S.A.
74-4937(3), and amendments thereto;
(iii) certified law enforcement officers employed by the law
enforcement training center. Such law enforcement officers shall receive
their benefits notwithstanding this subsection. The law enforcement
training center shall pay to the system the actuarially determined employer
contribution and the statutorily prescribed employee contribution based on
the retirant's compensation during any such period of employment;
(iv) members of the Kansas police and firemen's retirement system
pursuant to K.S.A. 74-4951 et seq., and amendments thereto, members of
the retirement system for judges pursuant to K.S.A. 20-2601 et seq., and
amendments thereto, or members of the state board of regents retirement
plan pursuant to K.S.A. 74-4925 et seq., and amendments thereto;
(v) employed as substitute teachers without a contract or officers,
employees or appointees of the legislature;
(vi) a poll worker hired to work an election day for a county election
officer responsible for conducting all official elections held in the county;
(vii) employed by, or have accepted employment from, a participating
employer prior to May 1, 2015. Any break in continuous employment by a
retirant or move to a different position by a retirant during the effective
period of this subsection shall be deemed new employment and shall
subject the retirant to the provisions of this subsection. Commencing
January 1, 2018, the participating employer of a retirant described in this
subparagraph who is employed in a covered position, as defined in K.S.A.
74-49,202, and amendments thereto, shall pay to the system the statutorily
prescribed employer contribution rate on the first $40,000 of such retirant's
compensation in a calendar year and a 30% employer contribution on any
compensation in excess of $40,000 in a calendar year during any such
period of employment. If a retirant is employed by more than one
participating employer or performing duties in more than one position,
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HB 2194 4
contributions shall be made on compensation from all such employment
for that calendar year. If a retirant is employed in a non-covered position,
no employer contribution shall be paid to the system;
(viii) state or local elected officials. A retirant shall not be employed
in an elected office within 30 days of such retirant's retirement, except that
if a retirant is filling a vacant elected office, no waiting period shall be
required;
(ix) employed by the Kansas academies of the United States
department of defense STARBASE program; or
(x) employed as a licensed professional nurse, licensed practical
nurse or in a direct support position of an affiliated employer organized
under K.S.A. 19-4001, and amendments thereto, or defined under K.S.A.
39-1803, and amendments thereto; or
(xi) employed as a teacher by a school district in a position for which
a certificate to teach is required.
(c) The participating employer shall enroll all retirants, including
retirants under subsection (6)(b)(i), (ii), (iii), (vii) and (viii), and report to
the system when compensation is paid to a retirant as provided in this
subsection. Such report shall contain a certification by the appointing
authority of the participating employer that any hired retirant has not been
employed by the participating employer within 60 days of such retirant's
retirement and that there was no prearranged agreement for employment
between the participating employer and the hired retirant. Upon request of
the executive director of the system, the participating employer shall
provide such information as may be needed by the executive director to
carry out the provisions of this subsection. No retirant shall make
contributions to the system or receive credit for service while employed
under the provisions of this subsection.
(d) Retirants who are independent contractors or employees of third-
party entities who contract with a participating employer, shall not be
subject to the compensation limitation or employer contribution
requirements in this subsection or the requirements of paragraph (c)
regarding enrollment and reporting to the system, so long as all of the
following apply:
(A) The contractual relationship was not created to allow the retirant
to continue employment with the participating employer after retirement in
a position similar to the one such retirant held prior to retirement;
(B) the activities performed by the independent contractor or third-
party entity are not normally performed exclusively by employees of that
participating employer; and
(C) the retirant meets the classification of independent contractor as
provided in K.S.A. 44-768, and amendments thereto, or activities
performed by the third-party entity that employs the retirant are performed
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on a limited-term basis and the third-party entity is not a participating
employer in the system.
(e) Nothing in this subsection shall be construed to create any right,
or to authorize the creation of any right, which is not subject to
amendment or nullification by act of the legislature.
(7) (a) Except as provided in paragraph (b), if determined by the
retirement system that a retirant entered into a prearranged agreement for
employment with a participating employer prior to such retirant's
retirement and prior to the end of the subsequent 60-day waiting period, or
the 180-day waiting period under subsection (9), the monthly retirement
benefit of such retirant shall be suspended during the period that begins on
the month in which the retirant is re-employed and ends six months after
the retirant's termination of such employment. The retirant shall repay to
the retirement system all monthly retirement benefits paid to the retirant by
the retirement system that the retirant received after such employment
began. The participating employer which hired such retirant shall be
required to pay to the system any fees, fines, penalties or any other cost
imposed by the internal revenue service and indemnify the system for any
cost incurred by the system to defend any action brought by the internal
revenue service based on in-service distributions which are a result of any
determined prearranged agreement and for any cost incurred by the system
to collect any monthly retirement benefit required to be repaid by such
retirant pursuant to this subsection.
(b) For members who retired on and after July 1, 2016, and on or
before July 1, 2019, if determined by the retirement system that a retirant
entered into a prearranged agreement for employment with a participating
employer prior to such retirant's retirement date and the subsequent 60-day
waiting period, or the 180-day waiting period under subsection (9), and
upon being notified of the violation, the retirant terminated such
employment, the provisions of paragraph (a) shall not apply. If any retirant
had benefits suspended prior to July 1, 2019, such benefits shall be
reimbursed by the retirement system, if the retirant terminated such
prearranged employment in accordance with the provisions of this act. On
and after July 1, 2019, the executive director may waive such penalties
under this subsection if it is determined by the retirement system that any
of the following conditions were satisfied:
(i) The retirant's total length of reemployment was less than 21
calendar days;
(ii) the retirant's total compensation during the total length of
reemployment was less than 10% of the amount of such retirant's
retirement benefit that would be suspended pursuant to this subsection; or
(iii) other facts and circumstances indicated that the retirant would
not have been reemployed but for an error on the part of the participating
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HB 2194 6
employer or the retirement system in verifying the retirement status of
such retirant and such retirant immediately terminated employment upon
being notified of the violation.
(c) On or before the first day of each regular session of the
legislature, beginning with the 2020 regular session, the executive director
shall submit an annual report on the number of waivers granted pursuant to
paragraph (b) in the prior calendar year to the joint committee on pensions,
investments and benefits, the house of representatives standing committee
on financial institutions and pensions and the senate standing committee
on financial institutions and insurance, or the successors of such
committees.
(8) For the purposes of this section a prearranged agreement for
employment may be determined by whether the facts and circumstances of
the situation indicate that the employer and employee reasonably
anticipated that further services would be performed after the employee's
retirement.
(9) (a) Notwithstanding the provisions of subsection (6) to the
contrary, commencing January 1, 2018, any retirant who is retired more
than 60 days, if such retirant's age on the date of retirement is 62 or older,
or is retired more than 180 days, if such retirant's age on the date of
retirement is less than 62, and who is subsequently hired without any
prearranged agreement with the participating employer in a covered
position, as defined in K.S.A. 74-49,202, and amendments thereto, or an
independent contractor or a third-party entity who contracts service to fill
such covered position shall not be subject to an earnings limitation that
when met or exceeded requires that the retirant not receive a retirement
benefit for any month for which such retirant serves in such covered
position. The participating employer of such retirant shall pay to the
system the statutorily prescribed employer contribution rate on the first
$40,000 of such retirant's compensation in a calendar year and a 30%
employer contribution on any compensation in excess of $40,000 in a
calendar year during any such period of employment. If a retirant is
employed by more than one participating employer or performing duties in
more than one position, contributions shall be made on compensation from
all such employment for that calendar year.
(b) Notwithstanding the provisions of subsection (6) to the contrary,
commencing January 1, 2018, any retirant who is retired more than 60
days, if such retirant's age on the date of retirement is 62 or older, or is
retired more than 180 days, if such retirant's age on the date of retirement
is less than 62, and who is subsequently hired without any prearranged
agreement with the participating employer in a non-covered position, or an
independent contractor or a third-party entity who contracts service to fill
such non-covered position, shall not be subject to an earnings limitation
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HB 2194 7
that when met or exceeded requires that the retirant not receive a
retirement benefit for any month for which such retirant serves in such
non-covered position. No employer contribution shall be paid to the
system on compensation paid to a retirant hired in a non-covered position.
(c) The participating employer shall enroll all retirants, including
retirants under subsection (6)(b)(i), (ii), (iii), (vii) and (viii), and report to
the system when compensation is paid to a retirant as provided in this
subsection. Such report shall contain a certification by the appointing
authority of the participating employer that any hired retirant has not been
employed by the participating employer within 60 days of such retirant's
retirement in the case of a retirant whose age on the date of retirement is
62 or older, or within 180 days of such retirant's retirement in the case of a
retirant whose age on the date of retirement is less than 62, and that there
was no prearranged agreement for employment between the participating
employer and the hired retirant. Upon request of the executive director of
the system, the participating employer shall provide such information as
may be needed by the executive director to carry out the provisions of this
subsection. No retirant shall make contributions to the system or receive
credit for service while employed under the provisions of this subsection.
(d) The provisions of this subsection relating to an earnings limitation
and employer contributions shall not apply to any retirant described in
subsection (6)(b) or to retirants who are independent contractors or
employees of third-party entities who contract with a participating
employer as described in subsection (6)(d), except as specifically provided
in this subsection.
(e) Nothing in this subsection shall be construed to create any right,
or to authorize the creation of any right that is not subject to amendment or
nullification by act of the legislature.
Sec. 2. K.S.A. 2024 Supp. 74-4914 is hereby repealed.
Sec. 3. This act shall take effect and be in force from and after its
publication in the statute book.
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