Friday, March 2, 2012
Public employee groups in Kansas have misgivings about a new legislative proposal for overhauling the state pension system.
Their representatives expressed misgivings Friday even though the proposal backs away from starting a 401(k)-style plan for new teachers and government workers.
The proposal was unveiled during a meeting of the House Pensions and Benefits Committee by its chairman.
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 Kansas Public Employees Retirement System projects an $8.3 billion shortfall between anticipated revenues and benefits promised to employees through 2033.
The new plan attempts to address concerns about a 401(k)-style plan, but public employee groups still worry workers would see diminished retirement benefits.