May 3, 2012
The Kansas Senate has rejected a proposal for a 401(k)-style retirement plan for some public employees but approved other changes for the state pension system.
An amendment creating a 401(k)-type plan for teachers and
government workers hired after 2013 failed Thursday on a 20-20
But a larger bill meant to bolster the state pension system's
long-term health passed on a vote of 32-8 and now goes to the
House. The measure is not a 401(k)-type system, but it does require
new hires to join a plan that departs from the traditional
guarantee of benefits based on salaries and years of service.
Officials of the pension system expect an $8.3 billion gap
between anticipated revenues and benefits through 2033.