12-5002.Actuarial standards imposed; minimum annual
contribution rate; optional schedule of phased-in contributions; actuarial
services by KPERS or private firm; rules and regulations; actuarial evaluation
of proposed pension plan changes.
(a) From and after January 1, 1978, no city may maintain or fund any local
police or fire pension plan except in accordance with the minimum funding
standards prescribed in this section.
(b) From and after January 1, 1978, and notwithstanding any other provision
of law to the contrary, all cities maintaining and funding any local police
or fire pension plan shall make annual contributions to each local police
or fire pension plan at an annual rate of contribution which is equal to
or greater than the minimum annual rate of contribution which is determined
pursuant to subsections (c) or (d), except as otherwise specifically authorized
pursuant to subsection (g). Such minimum annual rate of contribution shall
be equal to the sum of: (1) The actuarially determined amount required to
amortize over a period of not more than 20 years the accrued unfunded
liabilities of such plan; and (2) the normal or ongoing costs
attributable to active members.
(c) All cities which will maintain and fund one or more local police or
fire pension plans on and after January 1, 1978, and which do not elect
pursuant to subsection (d) to use the services of an actuary or firm of
actuaries other than the actuary of the board of trustees, shall furnish
to the board of trustees all necessary data, as determined by the board
of trustees, at times designated by the board of trustees, but not more
often than annually, from which the minimum annual rate of contribution
for each such plan may be determined. Upon the basis of an
actuarial analysis of such data, the board of trustees shall certify,
commencing on or before June 1, 1977, and at least once every three
years thereafter, to each such city the actuarially determined minimum annual
rate of contribution
which will be required for each such plan in accordance with subsection
(b) for the ensuing calendar year. All costs involved in making certifications
under this subsection shall be paid by each such city.
(d) Any city which will maintain and fund one or more local police or
fire pension plans on and after January 1, 1978, may elect to use and pay
for the services of an actuary or firm of actuaries other than the actuary
of the board of trustees as provided in subsection (c), in order to determine
the minimum annual rate of contribution for such city for all such plans.
Each city so electing shall file a statement of election with the board
of trustees, setting forth the name and address of the actuary or firm of
actuaries selected by such city and requesting approval thereof. The board
of trustees shall approve such actuary or firm of actuaries for performance
of the periodic actuarial evaluation and review of all the local police
or fire pension plans maintained and funded by such city and for determination
of the minimum annual contribution for each such plan in accordance with
this section if the board of trustees finds that such actuary or firm of
actuaries is qualified therefor. The approved actuary or firm of actuaries
shall perform such actuarial evaluation and review and shall determine the
minimum annual contribution for each local police or fire pension plan in
accordance with this section and shall report annually thereon to the board
of trustees in such form and manner as may be prescribed by rules and
regulations of the board of trustees. The approval of an actuary or firm of
actuaries
under this subsection (d) shall be effective until the city requests approval
of another actuary or firm of actuaries or until the city acts to use the
services of the actuary of the board of trustees under subsection (c) by
withdrawing 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 regulations
which establish actuarial standards and assumptions for the purposes of
actuarial evaluation and review of local police or fire pension plans and
determination of the minimum annual rates of contribution for cities
maintaining
and funding such plans. Whenever the amount of any benefit is to be
determined on the basis of actuarial standards and assumptions, the standards
and assumptions shall be specified in a way that precludes employer
discretion.
(f) Prior to the adoption by a city of any proposed changes in the benefit
provisions of a local police or fire pension plan or in the rate of employee
contributions thereto, the governing body of the city shall obtain an actuarial
evaluation of the effect of such changes, including an estimate of the minimum
annual contribution which would be required under this section if such changes
are adopted. Such actuarial evaluation and determination shall be conducted
by the actuary of the board of trustees or by the actuary or firm of actuaries
approved under subsection (d) and all costs incurred therefor shall be paid by
the city.
(g) The governing body of any city which is required to make annual
contributions at a minimum annual rate to each local police or fire pension
plan maintained
and funded by the city in accordance with this section and which determines
that such minimum annual rate of contributions would place an undue initial
hardship on the property taxpayers of such city, may adopt a resolution
to that effect and file a certified copy of such resolution with the
board of trustees prior to January 1, 1978. Any city which has filed a
certified
copy 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 equal
to or greater than the total of: (A) Thirty-three and one-third percent of the
actuarially determined amount required to amortize over
a period of not more than 40 years from January 1, 1978, the
accrued
unfunded liabilities of such plan which are attributable to active members;
(B) 33 1/3% of the
amount required
to amortize over a period of not more than 20 years from
January 1, 1978, the accrued unfunded liabilities of such plan which are
attributable to retired members; and (C) the normal or ongoing costs
attributable to active members.
(2) Contributions for the calendar year 1979 shall be at a rate equal
to or greater than the total of: (A) Sixty-six and two-thirds percent
of the actuarially determined amount required to amortize over a period
of not more than 39 years from January 1, 1979, the
accrued
unfunded liabilities of such plan which are attributable to active members;
(B) 66 2/3% of the
amount required
to amortize over a period of not more than 19 years from
January 1, 1979, the accrued unfunded liabilities of such plan which are
attributable
to retired members; and (C) the normal or ongoing costs attributable to active
members.
(3) Contributions for the calendar year 1980 and each year thereafter
shall be at a rate equal to or greater than the total of: (A) One hundred
percent of the actuarially determined amount required to amortize
over a period of not more than 38 years from January
1, 1980,
the accrued unfunded liabilities of such plan which are attributable to
active members; (B) 100% of the amount
required to amortize over a period of not more than 18
years from January
1, 1980, the accrued unfunded liabilities of such plan which are attributable
to retired members; and (C) the normal or ongoing costs attributable to active
members.
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.
12-5002.Actuarial standards imposed; minimum annual
contribution rate; optional schedule of phased-in contributions; actuarial
services by KPERS or private firm; rules and regulations; actuarial evaluation
of proposed pension plan changes.
(a) From and after January 1, 1978, no city may maintain or fund any local
police or fire pension plan except in accordance with the minimum funding
standards prescribed in this section.
(b) From and after January 1, 1978, and notwithstanding any other provision
of law to the contrary, all cities maintaining and funding any local police
or fire pension plan shall make annual contributions to each local police
or fire pension plan at an annual rate of contribution which is equal to
or greater than the minimum annual rate of contribution which is determined
pursuant to subsections (c) or (d), except as otherwise specifically authorized
pursuant to subsection (g). Such minimum annual rate of contribution shall
be equal to the sum of: (1) The actuarially determined amount required to
amortize over a period of not more than 20 years the accrued unfunded
liabilities of such plan; and (2) the normal or ongoing costs
attributable to active members.
(c) All cities which will maintain and fund one or more local police or
fire pension plans on and after January 1, 1978, and which do not elect
pursuant to subsection (d) to use the services of an actuary or firm of
actuaries other than the actuary of the board of trustees, shall furnish
to the board of trustees all necessary data, as determined by the board
of trustees, at times designated by the board of trustees, but not more
often than annually, from which the minimum annual rate of contribution
for each such plan may be determined. Upon the basis of an
actuarial analysis of such data, the board of trustees shall certify,
commencing on or before June 1, 1977, and at least once every three
years thereafter, to each such city the actuarially determined minimum annual
rate of contribution
which will be required for each such plan in accordance with subsection
(b) for the ensuing calendar year. All costs involved in making certifications
under this subsection shall be paid by each such city.
(d) Any city which will maintain and fund one or more local police or
fire pension plans on and after January 1, 1978, may elect to use and pay
for the services of an actuary or firm of actuaries other than the actuary
of the board of trustees as provided in subsection (c), in order to determine
the minimum annual rate of contribution for such city for all such plans.
Each city so electing shall file a statement of election with the board
of trustees, setting forth the name and address of the actuary or firm of
actuaries selected by such city and requesting approval thereof. The board
of trustees shall approve such actuary or firm of actuaries for performance
of the periodic actuarial evaluation and review of all the local police
or fire pension plans maintained and funded by such city and for determination
of the minimum annual contribution for each such plan in accordance with
this section if the board of trustees finds that such actuary or firm of
actuaries is qualified therefor. The approved actuary or firm of actuaries
shall perform such actuarial evaluation and review and shall determine the
minimum annual contribution for each local police or fire pension plan in
accordance with this section and shall report annually thereon to the board
of trustees in such form and manner as may be prescribed by rules and
regulations of the board of trustees. The approval of an actuary or firm of
actuaries
under this subsection (d) shall be effective until the city requests approval
of another actuary or firm of actuaries or until the city acts to use the
services of the actuary of the board of trustees under subsection (c) by
withdrawing 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 regulations
which establish actuarial standards and assumptions for the purposes of
actuarial evaluation and review of local police or fire pension plans and
determination of the minimum annual rates of contribution for cities
maintaining
and funding such plans. Whenever the amount of any benefit is to be
determined on the basis of actuarial standards and assumptions, the standards
and assumptions shall be specified in a way that precludes employer
discretion.
(f) Prior to the adoption by a city of any proposed changes in the benefit
provisions of a local police or fire pension plan or in the rate of employee
contributions thereto, the governing body of the city shall obtain an actuarial
evaluation of the effect of such changes, including an estimate of the minimum
annual contribution which would be required under this section if such changes
are adopted. Such actuarial evaluation and determination shall be conducted
by the actuary of the board of trustees or by the actuary or firm of actuaries
approved under subsection (d) and all costs incurred therefor shall be paid by
the city.
(g) The governing body of any city which is required to make annual
contributions at a minimum annual rate to each local police or fire pension
plan maintained
and funded by the city in accordance with this section and which determines
that such minimum annual rate of contributions would place an undue initial
hardship on the property taxpayers of such city, may adopt a resolution
to that effect and file a certified copy of such resolution with the
board of trustees prior to January 1, 1978. Any city which has filed a
certified
copy 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 equal
to or greater than the total of: (A) Thirty-three and one-third percent of the
actuarially determined amount required to amortize over
a period of not more than 40 years from January 1, 1978, the
accrued
unfunded liabilities of such plan which are attributable to active members;
(B) 33 1/3% of the
amount required
to amortize over a period of not more than 20 years from
January 1, 1978, the accrued unfunded liabilities of such plan which are
attributable to retired members; and (C) the normal or ongoing costs
attributable to active members.
(2) Contributions for the calendar year 1979 shall be at a rate equal
to or greater than the total of: (A) Sixty-six and two-thirds percent
of the actuarially determined amount required to amortize over a period
of not more than 39 years from January 1, 1979, the
accrued
unfunded liabilities of such plan which are attributable to active members;
(B) 66 2/3% of the
amount required
to amortize over a period of not more than 19 years from
January 1, 1979, the accrued unfunded liabilities of such plan which are
attributable
to retired members; and (C) the normal or ongoing costs attributable to active
members.
(3) Contributions for the calendar year 1980 and each year thereafter
shall be at a rate equal to or greater than the total of: (A) One hundred
percent of the actuarially determined amount required to amortize
over a period of not more than 38 years from January
1, 1980,
the accrued unfunded liabilities of such plan which are attributable to
active members; (B) 100% of the amount
required to amortize over a period of not more than 18
years from January
1, 1980, the accrued unfunded liabilities of such plan which are attributable
to retired members; and (C) the normal or ongoing costs attributable to active
members.
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.
12-5002.Actuarial standards imposed; minimum annual
contribution rate; optional schedule of phased-in contributions; actuarial
services by KPERS or private firm; rules and regulations; actuarial evaluation
of proposed pension plan changes.
(a) From and after January 1, 1978, no city may maintain or fund any local
police or fire pension plan except in accordance with the minimum funding
standards prescribed in this section.
(b) From and after January 1, 1978, and notwithstanding any other provision
of law to the contrary, all cities maintaining and funding any local police
or fire pension plan shall make annual contributions to each local police
or fire pension plan at an annual rate of contribution which is equal to
or greater than the minimum annual rate of contribution which is determined
pursuant to subsections (c) or (d), except as otherwise specifically authorized
pursuant to subsection (g). Such minimum annual rate of contribution shall
be equal to the sum of: (1) The actuarially determined amount required to
amortize over a period of not more than 20 years the accrued unfunded
liabilities of such plan; and (2) the normal or ongoing costs
attributable to active members.
(c) All cities which will maintain and fund one or more local police or
fire pension plans on and after January 1, 1978, and which do not elect
pursuant to subsection (d) to use the services of an actuary or firm of
actuaries other than the actuary of the board of trustees, shall furnish
to the board of trustees all necessary data, as determined by the board
of trustees, at times designated by the board of trustees, but not more
often than annually, from which the minimum annual rate of contribution
for each such plan may be determined. Upon the basis of an
actuarial analysis of such data, the board of trustees shall certify,
commencing on or before June 1, 1977, and at least once every three
years thereafter, to each such city the actuarially determined minimum annual
rate of contribution
which will be required for each such plan in accordance with subsection
(b) for the ensuing calendar year. All costs involved in making certifications
under this subsection shall be paid by each such city.
(d) Any city which will maintain and fund one or more local police or
fire pension plans on and after January 1, 1978, may elect to use and pay
for the services of an actuary or firm of actuaries other than the actuary
of the board of trustees as provided in subsection (c), in order to determine
the minimum annual rate of contribution for such city for all such plans.
Each city so electing shall file a statement of election with the board
of trustees, setting forth the name and address of the actuary or firm of
actuaries selected by such city and requesting approval thereof. The board
of trustees shall approve such actuary or firm of actuaries for performance
of the periodic actuarial evaluation and review of all the local police
or fire pension plans maintained and funded by such city and for determination
of the minimum annual contribution for each such plan in accordance with
this section if the board of trustees finds that such actuary or firm of
actuaries is qualified therefor. The approved actuary or firm of actuaries
shall perform such actuarial evaluation and review and shall determine the
minimum annual contribution for each local police or fire pension plan in
accordance with this section and shall report annually thereon to the board
of trustees in such form and manner as may be prescribed by rules and
regulations of the board of trustees. The approval of an actuary or firm of
actuaries
under this subsection (d) shall be effective until the city requests approval
of another actuary or firm of actuaries or until the city acts to use the
services of the actuary of the board of trustees under subsection (c) by
withdrawing 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 regulations
which establish actuarial standards and assumptions for the purposes of
actuarial evaluation and review of local police or fire pension plans and
determination of the minimum annual rates of contribution for cities
maintaining
and funding such plans. Whenever the amount of any benefit is to be
determined on the basis of actuarial standards and assumptions, the standards
and assumptions shall be specified in a way that precludes employer
discretion.
(f) Prior to the adoption by a city of any proposed changes in the benefit
provisions of a local police or fire pension plan or in the rate of employee
contributions thereto, the governing body of the city shall obtain an actuarial
evaluation of the effect of such changes, including an estimate of the minimum
annual contribution which would be required under this section if such changes
are adopted. Such actuarial evaluation and determination shall be conducted
by the actuary of the board of trustees or by the actuary or firm of actuaries
approved under subsection (d) and all costs incurred therefor shall be paid by
the city.
(g) The governing body of any city which is required to make annual
contributions at a minimum annual rate to each local police or fire pension
plan maintained
and funded by the city in accordance with this section and which determines
that such minimum annual rate of contributions would place an undue initial
hardship on the property taxpayers of such city, may adopt a resolution
to that effect and file a certified copy of such resolution with the
board of trustees prior to January 1, 1978. Any city which has filed a
certified
copy 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 equal
to or greater than the total of: (A) Thirty-three and one-third percent of the
actuarially determined amount required to amortize over
a period of not more than 40 years from January 1, 1978, the
accrued
unfunded liabilities of such plan which are attributable to active members;
(B) 33 1/3% of the
amount required
to amortize over a period of not more than 20 years from
January 1, 1978, the accrued unfunded liabilities of such plan which are
attributable to retired members; and (C) the normal or ongoing costs
attributable to active members.
(2) Contributions for the calendar year 1979 shall be at a rate equal
to or greater than the total of: (A) Sixty-six and two-thirds percent
of the actuarially determined amount required to amortize over a period
of not more than 39 years from January 1, 1979, the
accrued
unfunded liabilities of such plan which are attributable to active members;
(B) 66 2/3% of the
amount required
to amortize over a period of not more than 19 years from
January 1, 1979, the accrued unfunded liabilities of such plan which are
attributable
to retired members; and (C) the normal or ongoing costs attributable to active
members.
(3) Contributions for the calendar year 1980 and each year thereafter
shall be at a rate equal to or greater than the total of: (A) One hundred
percent of the actuarially determined amount required to amortize
over a period of not more than 38 years from January
1, 1980,
the accrued unfunded liabilities of such plan which are attributable to
active members; (B) 100% of the amount
required to amortize over a period of not more than 18
years from January
1, 1980, the accrued unfunded liabilities of such plan which are attributable
to retired members; and (C) the normal or ongoing costs attributable to active
members.
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.