UPDATE: Tuesday, May 15, 2012
Negotiators for the Kansas House and Senate have agreed on a proposal creating a new retirement plan for teachers and government workers hired after 2014.
Three senators and three House members resolved the last of their disagreements Tuesday on the pensions legislation.
It would move away from traditional state plans that guarantee retirement benefits up front, based on a worker's salary and years of service. But it would not go as far as 401(k) plans that tie benefits solely to the plan's investment earnings.
The state would pay 5.25 percent interest on contributions from workers and the state to employees' retirement benefits. Workers
would get a lump sum upon retirement, which could be converted into
Tuesday, May 15, 2012
Negotiators for the Kansas House and Senate have settled some key issues on pensions legislation but they're still haggling over the details of a new retirement plan for future public employees.
Three senators and three House members met Tuesday to work on the final version of a pensions bill.
They agreed on using some revenues from state-owned casinos to bolster the long-term health of the state pension system. And House members dropped a proposal to create a new, voluntary 401(k)-style plan for new hires.
But they haven't agreed on details of new plan for public employees hired after 2014. It would move away from guaranteeing benefits based on a worker's salary and years of service, but it doesn't go as far as a 401(k)-style plan.