Kan. Senate to debate 401(k)-style pension plan
Published on -5/3/2012, 6:48 AM
TOPEKA, Kan. (AP) -- The Kansas Senate's leading advocate of starting a 401(k)-style pension plan for new teachers and government workers says he'll push fellow senators to endorse the idea.
Sen. Jeff King, an Independence Republican, says he'll offer such a proposal during Thursday's debate on legislation designed to bolster the long-term financial health of the Kansas Public Employees Retirement System.
The pension system projects an $8.3 billion gap between its anticipated revenues and the benefits promised to public employees through 2033.
The bill before the Senate would require new hires to join a plan that's not a traditional one guaranteeing benefits up front based on their salaries and years of service. But it's also not a 401(k)-style plan, in which benefits are tied to investment earnings.