Kan. public employees work against 401(k) move
Published on -2/10/2012, 8:51 AM
Printer-friendly version
E-Mail This Story
TOPEKA, Kan. (AP) -- Teachers, other school workers and public employee groups tried Thursday to build pressure on legislators to abandon a proposal to create a 401(k)-style pension plan for new school and government hires.
A Senate committee on pension issues heard testimony from opponents of a plan drafted by a study commission last year to overhaul the pension system for teachers and government workers. The plan would put new hires into a 401(k)-style plan, in which retirement benefits would be tied to investment earnings on contributions from the workers and the state.
Plans operated by the Kansas Public Employees Retirement System now guarantee benefits up front, based on a worker's salary and service time.
KPERS projects an $8.3 billion shortfall between its anticipated revenues and the benefits it has promised through 2033. Supporters of starting a 401(k)-style plan say it will prevent the gap from getting larger, but opponents told senators the state would actually face higher costs from starting the new plan, with benefits less secure.
The Senate committee met after teachers from Kansas City-area school districts in Johnson County delivered to the Statehouse petitions on pension issues signed by more than 6,400 school employees.
The signers are protesting the proposal for a 401(k)-style pension plan. They presented the petitions Thursday to their legislators and to the office of Republican Gov. Sam Brownback's, who supports the idea.








