Post by Logan on Jan 14, 2017 1:48:50 GMT -6
Brownback’s budget remedy dramatically hikes KPERS’ unfunded liability
The fix to Kansas’ budget shortfall submitted by Gov. Sam Brownback would have the consequence of elevating the long-term unfunded liability of the state’s pension system by $6.5 billion, officials said Thursday.
Alan Conroy, executive director of Kansas Public Employees Retirement System, said the governor had recommended repeal of a state law obligating the state to make a deferred $97 million payment to the retirement system. The Republican governor also seeks to freeze annual state contributions to KPERS at 2016 levels, which eliminates the statutory 1.2 percent yearly increase.
He said a result of the changes urged by Brownback would be to deprive the system of nearly $600 million in contributions from the state government. The compounding effect of embracing the governor’s strategy will significantly elevate the unfunded liability at KPERS over the next 30 years, Conroy said.
“You can pay less now. Guess what? If you’re going to refinance, you’re going to pay more down the road,” Conroy told members of the Senate Ways and Means Committee.
Read more: cjonline.com/news/local/2017-01-12/brownback-s-budget-remedy-dramatically-hikes-kpers-unfunded-liability
The fix to Kansas’ budget shortfall submitted by Gov. Sam Brownback would have the consequence of elevating the long-term unfunded liability of the state’s pension system by $6.5 billion, officials said Thursday.
Alan Conroy, executive director of Kansas Public Employees Retirement System, said the governor had recommended repeal of a state law obligating the state to make a deferred $97 million payment to the retirement system. The Republican governor also seeks to freeze annual state contributions to KPERS at 2016 levels, which eliminates the statutory 1.2 percent yearly increase.
He said a result of the changes urged by Brownback would be to deprive the system of nearly $600 million in contributions from the state government. The compounding effect of embracing the governor’s strategy will significantly elevate the unfunded liability at KPERS over the next 30 years, Conroy said.
“You can pay less now. Guess what? If you’re going to refinance, you’re going to pay more down the road,” Conroy told members of the Senate Ways and Means Committee.
Read more: cjonline.com/news/local/2017-01-12/brownback-s-budget-remedy-dramatically-hikes-kpers-unfunded-liability