GingerLewman shares Oct 29, 2009 10:34AM that KPERS has had some negative press. Glen Deck is here to dispel the myths. Kansans, pay attention:
GingerLewman says Oct 29, 2009 02:35PM KPERS provides retirement, disability and survivor benefits to members and beneficiaries. Lots of KS public workers contribute.
GingerLewman says Oct 29, 2009 02:40PM in FY 2009, $765mil was taken in with payment over $1.1billion
GingerLewman says Oct 29, 2009 02:41PM KS Legislature enacts KPERS' retirement plan design. KPERS board can not adjust the plan at all. Only the Legislature.
GingerLewman says Oct 29, 2009 02:43PM eg: final salary of 40K with 30yrs contribution and 1.75% statutory multiplier = annual benefit of $21,000.
GingerLewman says Oct 29, 2009 02:45PM The Legislature has created a cap for how much the employer contributes. So that's where we fall apart. Legislature did this in 1993.
GingerLewman says Oct 29, 2009 02:46PM Employers' contributions are based on actuarial calculations, which have that cap.
GingerLewman says Oct 29, 2009 02:48PM In 2001, the actuarially required contribution rate didn't converge with the statutory rate.
GingerLewman says Oct 29, 2009 02:48PM So in 2003, the legislature raised the statutory caps a fraction of a percent each year til 2008.
GingerLewman says Oct 29, 2009 02:49PM The state also put in $500million in pension obligation bonds in 2004
GingerLewman says Oct 29, 2009 02:49PM In 2007, Legislature has a new plan for new employees, which increased retirement ages and employee contributions.
GingerLewman says Oct 29, 2009 02:50PM as of Dec 31, 2008, ther was a 12% decline in systems funded ration to 59%,
GingerLewman says Oct 29, 2009 02:51PM unfunded actuarial liability $2.7 billion increased to 8.3 billion.
GingerLewman says Oct 29, 2009 02:51PM there are about $2 billion in deferred losses over the next 4 years.
GingerLewman says Oct 29, 2009 02:55PM oh man. I wish I could show you these graphs. School group is in trouble. Pretty soon (in the next 10 years or so),
GingerLewman says Oct 29, 2009 02:56PM New employees, should be ok, but current active employees will have to have a system change.
GingerLewman says Oct 29, 2009 02:58PM Solution: employer rate increases and benefit changes such as decreasing the benefit multiplier for future service.
GingerLewman says Oct 29, 2009 03:00PM such as mandatory, voluntary, or hybrid form of contribution plan
GingerLewman says Oct 29, 2009 03:00PM There must also be some changes in actuarial changes. He's not telling us how those may change.
GingerLewman says Oct 29, 2009 03:01PM KPERS is NOT bankrupt. In fact, the State of KS is more bankrupt than KPERS.
GingerLewman says Oct 29, 2009 03:03PM If KS went to the Regent's plan, it would cost us all massively, going up to 8.4% We've never been to that rate of contribution before.
GingerLewman says Oct 29, 2009 03:05PM Overall, losses have had substantial neg impact on KPERS long term funding outlook.
GingerLewman says Oct 29, 2009 03:05PM Current benefits are safe for a period of time. Assests of about 11billion are available.
GingerLewman says Oct 29, 2009 03:06PM Investment returns alone can't tix funding shortfall. Not immediate crisis, but addressing the funding shortfall is critical.
GingerLewman says Oct 29, 2009 03:06PM KPERS is conducting a comprehensive funding analysis with options for restoring System's financial health.
GingerLewman says Oct 29, 2009 03:07PM Options for the funding solution will be presenting to the Legislature and Governor later this year for their consideration.
GingerLewman says Oct 29, 2009 03:08PM Blake West (KNEA) talking: if this has piqued interest, talk to steering committee abt underlying systemic problems with KS funding on all.
AndyTSDC says Oct 29, 2009 03:45PM My district takes 7 grand/yr OUT of it's contributions if you don't retire when you're supposed to
Desirae says Oct 29, 2009 08:22PM before its time for me to go, they'll up the age. But I have a long time before I have to worry about that.
