12-5002.   Actuarial standards imposed; minimum annualcontribution rate; optional schedule of phased-in contributions; actuarialservices by KPERS or private firm; rules and regulations; actuarial evaluationof proposed pension plan changes.(a) From and after January 1, 1978, no city may maintain or fund any localpolice or fire pension plan except in accordance with the minimum fundingstandards prescribed in this section.

      (b)   From and after January 1, 1978, and notwithstanding any other provisionof law to the contrary, all cities maintaining and funding any local policeor fire pension plan shall make annual contributions to each local policeor fire pension plan at an annual rate of contribution which is equal toor greater than the minimum annual rate of contribution which is determinedpursuant to subsections (c) or (d), except as otherwise specifically authorizedpursuant to subsection (g). Such minimum annual rate of contribution shallbe equal to the sum of: (1) The actuarially determined amount required toamortize over a period of not more than 20 years the accrued unfundedliabilities of such plan; and (2) the normal or ongoing costsattributable to active members.

      (c)   All cities which will maintain and fund one or more local police orfire pension plans on and after January 1, 1978, and which do not electpursuant to subsection (d) to use the services of an actuary or firm ofactuaries other than the actuary of the board of trustees, shall furnishto the board of trustees all necessary data, as determined by the boardof trustees, at times designated by the board of trustees, but not moreoften than annually, from which the minimum annual rate of contributionfor each such plan may be determined. Upon the basis of anactuarial analysis of such data, the board of trustees shall certify,commencing on or before June 1, 1977, and at least once every threeyears thereafter, to each such city the actuarially determined minimum annualrate of contributionwhich will be required for each such plan in accordance with subsection(b) for the ensuing calendar year. All costs involved in making certificationsunder this subsection shall be paid by each such city.

      (d)   Any city which will maintain and fund one or more local police orfire pension plans on and after January 1, 1978, may elect to use and payfor the services of an actuary or firm of actuaries other than the actuaryof the board of trustees as provided in subsection (c), in order to determinethe minimum annual rate of contribution for such city for all such plans.Each city so electing shall file a statement of election with the boardof trustees, setting forth the name and address of the actuary or firm ofactuaries selected by such city and requesting approval thereof. The boardof trustees shall approve such actuary or firm of actuaries for performanceof the periodic actuarial evaluation and review of all the local policeor fire pension plans maintained and funded by such city and for determinationof the minimum annual contribution for each such plan in accordance withthis section if the board of trustees finds that such actuary or firm ofactuaries is qualified therefor. The approved actuary or firm of actuariesshall perform such actuarial evaluation and review and shall determine theminimum annual contribution for each local police or fire pension plan inaccordance with this section and shall report annually thereon to the boardof trustees in such form and manner as may be prescribed by rules andregulations of the board of trustees. The approval of an actuary or firm ofactuariesunder this subsection (d) shall be effective until the city requests approvalof another actuary or firm of actuaries or until the city acts to use theservices of the actuary of the board of trustees under subsection (c) bywithdrawing the statement of election filed under this subsection (d).

      (e)   In accordance with the provisions of K.S.A. 77-415 et seq.and amendments thereto, the board of trustees shall adopt rules and regulationswhich establish actuarial standards and assumptions for the purposes ofactuarial evaluation and review of local police or fire pension plans anddetermination of the minimum annual rates of contribution for citiesmaintainingand funding such plans. Whenever the amount of any benefit is to bedetermined on the basis of actuarial standards and assumptions, the standardsand assumptions shall be specified in a way that precludes employerdiscretion.

      (f)   Prior to the adoption by a city of any proposed changes in the benefitprovisions of a local police or fire pension plan or in the rate of employeecontributions thereto, the governing body of the city shall obtain an actuarialevaluation of the effect of such changes, including an estimate of the minimumannual contribution which would be required under this section if such changesare adopted. Such actuarial evaluation and determination shall be conductedby the actuary of the board of trustees or by the actuary or firm of actuariesapproved under subsection (d) and all costs incurred therefor shall be paid bythe city.

      (g)   The governing body of any city which is required to make annualcontributions at a minimum annual rate to each local police or fire pensionplan maintainedand funded by the city in accordance with this section and which determinesthat such minimum annual rate of contributions would place an undue initialhardship on the property taxpayers of such city, may adopt a resolutionto that effect and file a certified copy of such resolution with theboard of trustees prior to January 1, 1978. Any city which has filed acertifiedcopy of such resolution with the board of trustees prior to January 1, 1978,may make annual contributions in accordance with the following schedule:

      (1)   Contributions for the calendar year 1978 shall be at a rate equalto or greater than the total of: (A) Thirty-three and one-third percent of theactuarially determined amount required to amortize overa period of not more than 40 years from January 1, 1978, theaccruedunfunded liabilities of such plan which are attributable to active members;(B) 33 1/3% of theamount requiredto amortize over a period of not more than 20 years fromJanuary 1, 1978, the accrued unfunded liabilities of such plan which areattributable to retired members; and (C) the normal or ongoing costsattributable to active members.

      (2)   Contributions for the calendar year 1979 shall be at a rate equalto or greater than the total of: (A) Sixty-six and two-thirds percentof the actuarially determined amount required to amortize over a periodof not more than 39 years from January 1, 1979, theaccruedunfunded liabilities of such plan which are attributable to active members;(B) 66 2/3% of theamount requiredto amortize over a period of not more than 19 years fromJanuary 1, 1979, the accrued unfunded liabilities of such plan which areattributableto retired members; and (C) the normal or ongoing costs attributable to activemembers.

      (3)   Contributions for the calendar year 1980 and each year thereaftershall be at a rate equal to or greater than the total of: (A) One hundredpercent of the actuarially determined amount required to amortizeover a period of not more than 38 years from January1, 1980,the accrued unfunded liabilities of such plan which are attributable toactive members; (B) 100% of the amountrequired to amortize over a period of not more than 18years from January1, 1980, the accrued unfunded liabilities of such plan which are attributableto retired members; and (C) the normal or ongoing costs attributable to activemembers.

      History:   L. 1976, ch. 348, § 2;L. 1977, ch. 65, § 1;L. 1996, ch. 266, § 1;L. 1998, ch. 64, § 1;L. 2002, ch. 3, § 1; July 1.