Kansas Statutes

Chapter 72: Schools

Article 55: State School Retirement System

Statutes:

• 72-5501: Definitions.
• 72-5502: School employees savings fund; state school retirement fund; transfers; uses.
• 72-5503:
• 72-5504:
• 72-5505:
• 72-5506:
• 72-5507:
• 72-5508:
• 72-5509:
• 72-5510: Service records of school employees; establishment of membership, conditions.
• 72-5511: Same; certificate of service record; failure to file annuity claim.
• 72-5512: Eligibility for school annuity; how annuities paid; life annuities and refund annuities at retirement; employment after retirement, when; effect.
• 72-5512a:
• 72-5512b: Computation and payment of certain remaining state obligations; required assumptions and conditions of payment; payment from state general fund.
• 72-5513: Disability annuity; medical examinations; return to service.
• 72-5514: Correction of errors.
• 72-5515: Deductions from salary; disposition of moneys; how credited.
• 72-5516: Same; contracts deemed to include.
• 72-5517: Same; permanent reserves; investment; interest prorated.
• 72-5517a:
• 72-5518: Retirement annuities; early retirement reduction; supplemental benefits for certain retired persons; optional joint annuity.
• 72-5518a: Same; increases inclusive of increases provided by 74-4943.
• 72-5518b: Same; payments made under 72-5512a under provisions of school retirement system.
• 72-5519: Quitting service before age sixty.
• 72-5520: Refund upon quitting service, when; return to service.
• 72-5521: Death of school employee; refunds.
• 72-5522:
• 72-5523:
• 72-5524: Limitation of actions to recover refund or installment; qualifying conditions.
• 72-5525: Audits.
• 72-5526: Unassignability; exemptions.
• 72-5527: Perjury; penalties.
• 72-5528: Ad valorem tax prohibited.
• 72-5529: Right to amend act reserved.
• 72-5530: Invalidity of part.
• 72-5531:
• 72-5532: Income tax exemption of school annuities.
• 72-5533: Employees in school service one-half time; and employed by a nonschool agency of the state one-half time.
• 72-5534: Same; time effective.
• 72-5535:
• 72-5536: Retirement annuities; benefits for noncredited school service for certain special members of Kansas public employees retirement system.

• 72-5501: Definitions. As used in this act, unless the context otherwise requires:

        (a)   "Retirement system" means the state school retirement system;

        (b)   "board" means the board of trustees of the Kansas public employees retirement system;

        (c)   "school year" means either the twelve-month period beginning on September first, or the legal school term during such period. In case of doubt the board shall decide what constitutes a school year. The board shall not give credit for a school year that represents less than 140 days, except that the board may give credit for a school year if not less than 80 days of actual service has been rendered and if continuance in school service was prevented by illness or other emergency beyond the control of the person entitled to such credit. No person shall receive credit for more than one school year during any twelve-month period beginning on September 1. The board shall give credit for 1/2 of a school year for 1/2 school year of continuous full-time service;

        (d)   "school employees" means persons who have performed or who shall hereafter perform school services as classroom teachers, administrators, supervisors, librarians, nurses, clerks, janitors or in any other full-time capacity in the public schools, area vocational-technical schools or community junior colleges of the state of Kansas and who are citizens of the United States and school employees shall include: (1) Persons who have performed service as a county superintendent of public instruction or as an employee appointed by and under the supervision of a county superintendent; (2) persons who have performed service as a state superintendent of public instruction or as an employee appointed by and under supervision of a state superintendent; (3) persons who have performed services as an employee appointed by the former state board for vocational education, except that prior to the time of accepting such employment by such county superintendent, state superintendent or state board for vocational education such employees had performed school service in Kansas as a teacher, principal, supervisor, or superintendent; (4) persons who are employees appointed by and under the supervision of the constitutional state board of education, including those employees transferred to the state department of education at its inception in January of 1969, and who prior to the time of accepting such employment by the state board of education had performed school service in Kansas as a teacher, principal, supervisor, or superintendent; (5) the commissioner of education if such commissioner exercises an irrevocable option to be covered by the state school retirement system in lieu of being covered by the Kansas public employees retirement system, which option shall be exercised by written notice of the commissioner of education at the time of appointment. Such notice shall be directed to the state school retirement board and the board of trustees of the Kansas public employees retirement system; (6) all instructional employees for the school for the blind and such employees shall be excluded from participation in any other state retirement system; and (7) teachers and supervisors of instruction at the state institutions under the management of the director of penal institutions and those under the management of the state board of social welfare which provide regular classroom instruction for their inmates or patients if such instructional personnel have valid certificates issued by the state board of education, except that the provisions of this subsection shall not include such employees who have elected or shall elect, irrevocably, at the time of employment by the institution to participate in the Kansas public employees retirement system. The term "school employees" shall not include any employee while a member of a separate retirement system operated by any board of education but if any such employee at any time becomes eligible to participate in the state retirement as provided by this act, the years such person served in a school system in Kansas which maintains a separate retirement system shall be included in determining years of service of such person under this act. An employee performing service in a school system maintaining its own separate retirement system in Kansas may qualify for service credit in the state system by discontinuing membership in such separate retirement system prior to the time of retirement and accepting a position which is covered by the state retirement system, and continuing in such service for at least one school year. Subject to the provisions of K.S.A. 74-49,123 and amendments thereto, such employee shall contribute to the state retirement system an amount of money equal to that which was deducted from such employee's salary for services rendered after September 1, 1941, in the city maintaining its own retirement system and this amount shall be credited to the savings account of the employee. If such employee was for any reason excluded from participation in the separate retirement system, the board shall give credit for such nonmember service in the public schools in the city maintaining a separate retirement system without the required transfer of funds. After September 1, 1971, no person shall be deemed a school employee for the purposes of this act;

        (e)   "school service" means: (1) Service performed as a school employee prior to September 1, 1941, if such years of service include at least six months during the years 1938-39 or 1939-40 or 1940-41; service performed by any employee who was not in school service in any of the school years from 1938 to 1941, but who reentered school service after September 1, 1941, and continued in such service for at least five years; all service prior to September 1, 1941, of any annuitant who retired prior to September 1, 1961, and who was granted a service annuity for one or more years as a contributing member of the school retirement system; all service prior to September 1, 1941, of any employee who served for at least six months during one of the qualifying years from 1938 to 1941 in a school system maintaining its own separate retirement system in Kansas, if such employee has not qualified, nor will in the future qualify, for retirement benefits under the separate retirement system; all service as a school employee, including out-of-state service as a school employee, for a period of 10 or more years prior to September 1, 1938, except that service annuities paid by the state of Kansas to such school employees shall not include such out-of-state service as a school employee, unless otherwise provided by law; (2) service as a school employee after September 1, 1941, as a contributing member of the school retirement system. No service credit shall be granted to a school employee who established or shall hereafter establish membership later than September 1, 1941, for a period of time between September 1, 1941, and the date of becoming a contributing member of the retirement system. School service shall include only full-time employees, except that 1/2 year of credit shall be given to instructional employees who perform school service on at least a 1/2 time basis throughout a school year. No school service credit shall be given in fractional units of less than 1/2 year. The board may grant service credit to employees, who were performing school service at the time of their induction into the armed forces of the United States, equal to the time spent in the armed forces between September 1, 1940, and September 1, 1947, and between June 25, 1950, and July 27, 1953 and between August 5, 1964, and August 15, 1973, but no such service credit shall be granted for a period of more than five years spent in the armed forces between September 1, 1940, and September 1, 1947, or for a period of more than two years spent in the armed forces between June 25, 1950, and July 27, 1953 or for a period of more than two years spent in the armed forces between August 5, 1964 and August 15, 1973. In the event the employee served during the periods between September 1, 1940, and September 1, 1947, and between June 25, 1950, and July 27, 1953, such employee shall be granted a service credit for the actual time spent in the armed forces between June 25, 1950, and July 27, 1953, nor shall such service credit be granted to any employee unless such employee shall reenter school service and continue in such service for at least one school year. The board may grant service credit to an employee who was performing school service prior to the time of becoming employed as a veterans' instructional on-the-farm training instructor equal to the time spent as such instructor between the dates of September 1, 1946, and September 1, 1961. The board may grant service credit to an employee who prior to performing school service was a faculty member of the Kansas vocational school at Topeka, known part of the time as the Kansas technical institute, which operated under the Kansas state board of regents prior to 1956 equal to the time spent as instructor at such school. In case of doubt the board shall decide what constitutes school service; and (3) service for which credit must be given under federal law, including, but not limited to, when applicable, the uniformed services employment and reemployment rights act of 1994, as in effect on July 1, 1998;

        (f)   "school annuitant" means any person who is entitled to receive a school annuity;

        (g)   "school annuity" means the monthly payments due to any school annuitant. Such payments shall continue for life, and be paid in monthly installments;

        (h)   "service annuity" means that part of the school annuity which is based upon the service record of the person concerned, and which is paid by the state;

        (i)   "savings annuity" means that part of the school annuity which results from the accumulated contributions of the school employee and interest thereon less the proportionate share of the expense of the administration of this act;

        (j)   "disability annuity" means a school annuity granted to a school employee who suffers such physical or mental disability as to be unable to perform school service;

        (k)   "standard annuity" means the school annuity which is granted to a school employee at the age of 65 years, as prescribed by this act. The standard annuity shall be used as the basis in computing actuarially equivalent annuities granted at ages prior to 65 years. Whenever the amount of any benefit is to be determined on the basis of actuarial assumptions, the assumption shall be specified in a way that precludes employer discretion;

        (l)   "service record" means the individual record kept by the board for each school employee. It shall show the number of school years of school service, the salary or wages earned, the date of birth, and such other data as the board may require;

        (m)   "age" and "attained age" shall be computed as of September 1 of the calendar year under consideration;

        (n)   "deductions" means the amounts withheld, as provided in this act, from warrants issued in payment for school services;

        (o)   "actuarial computation" means computation in accordance with some standard actuarial table. The board shall determine which one of the standard actuarial tables shall be used. Whenever the amount of any benefit is to be determined on the basis of actuarial assumptions, the assumptions shall be specified in a way that precludes employer discretion; and

        (p)   "compensation" means the same as provided in K.S.A. 74-49,123 and amendments thereto for purposes of nondiscrimination testing pursuant to the federal internal revenue code of 1986, as in effect on July 1, 1998.

        History:   L. 1941, ch. 341, § 1; L. 1947, ch. 373, § 1; L. 1949, ch. 380, § 1; L. 1951, ch. 408, § 1; L. 1953, ch. 339, § 1; L. 1959, ch. 295, § 1; L. 1965, ch. 413, § 1; L. 1968, ch. 392, § 1; L. 1969, ch. 327, § 1; L. 1971, ch. 232, § 1; L. 1974, ch. 332, § 1; L. 1987, ch. 299, § 9; L. 1998, ch.64, § 22; L. 1998, ch. 201, § 8; July 1.

• 72-5502: School employees savings fund; state school retirement fund; transfers; uses. There are hereby created the school employees savings fund and the state school retirement fund.

        (a)   The school employees savings fund shall be the fund in which shall be placed and accumulated the deductions received under this act. The accumulated deductions of the school employee returned to him upon his withdrawal, or paid to his estate, or designated beneficiary, in the event of his death, as provided in this act, shall be paid from this fund. Investments authorized to be made by the board shall be made from this fund and interest received thereon shall be paid into this fund. Transfers from this fund shall be made to the state school retirement fund as needed for the purpose of paying savings annuities. All expenses necessary for the administration of this act shall be paid from this fund.

        (b)   All money transferred or appropriated by the state for the payment of service annuities shall be placed in the school retirement fund.

        (c)   The state school retirement fund shall be the fund from which all school annuities shall be paid.

        History:   L. 1941, ch. 341, § 2; L. 1963, ch. 380, § 1; June 30.

• 72-5503:

        History:   L. 1941, ch. 341, § 3; L. 1969, ch. 327, § 2; Repealed, L. 1973, ch. 286, § 1; July 1.

• 72-5504:

        History:   L. 1941, ch. 341, § 4; Repealed, L. 1973, ch. 286, § 1; July 1.

• 72-5505:

        History:   L. 1941, ch. 341, § 5; L. 1943, ch. 277, § 5; L. 1945, ch. 292, § 1; L. 1949, ch. 380, § 2; L. 1953, ch. 363, § 1; L. 1961, ch. 342, § 1; L. 1965, ch. 414, § 1; Repealed, L. 1973, ch. 286, § 1; July 1.

• 72-5506:

        History:   L. 1941, ch. 341, § 6; L. 1953, ch. 339, § 2; L. 1969, ch. 327, § 3; Repealed, L. 1973, ch. 286, § 1; July 1.

• 72-5507:

        History:   L. 1941, ch. 341, § 7; Repealed, L. 1973, ch. 286, § 1; July 1.

• 72-5508:

        History:   L. 1941, ch. 341, § 8; L. 1965, ch. 414, § 2; L. 1967, ch. 434, § 21; Repealed, L. 1973, ch. 286, § 1; July 1.

• 72-5509:

        History:   L. 1941, ch. 341, § 9; Repealed, L. 1973, ch. 286, § 1; July 1.

• 72-5510: Service records of school employees; establishment of membership, conditions. As soon as practicable after this act goes into effect, the board shall receive, verify, and formally validate service records as submitted by the school employees. So far as possible, reports of school service, of salaries earned, and of dates of birth shall be certified from official records; but when these are not available, the board is authorized and directed to consider other reasonable evidence. Any statement of a date of birth shall be signed under oath by the school employee concerned. The board shall have authority, independently, to secure other evidence affecting service records.

        History:   L. 1941, ch. 341, § 10; L. 1953, ch. 339, § 3; L. 1961, ch. 342, § 2; L. 1965, ch. 414, § 3; July 1.

• 72-5511: Same; certificate of service record; failure to file annuity claim. Subject to such rules and regulations as the board shall adopt, the board shall issue to each school employee who shall perform school service after September 1, 1940, a certificate of the employee's service record to date, showing length of service, salaries earned, and the date of birth, and such other information as may be pertinent. Such certificate shall be final and conclusive for retirement purposes as to such data unless modified by the board upon application made by the school employee, or upon its own initiative within one year after the date of its issuance or modification. If any school employee shall fail or refuse to file any service record required by the board within three months after being notified to do so, the board shall prepare the service record from information within its knowledge and issue the certificate to the employee. If any school employee shall delay filing claim for any annuity, no payment shall be made for the period of the delay.

        History:   L. 1941, ch. 341, § 11; April 16.

• 72-5512: Eligibility for school annuity; how annuities paid; life annuities and refund annuities at retirement; employment after retirement, when; effect. Except as otherwise provided in this act, any school employee who has attained the age of 65 shall be eligible for a school annuity, but any employee who has attained the age of 60, at such school employee's choice, may be granted an annuity beginning on any September first from age 60. Any school annuity granted prior to age 65 shall not be the standard annuity, but shall be determined in accordance with the early retirement schedule specified in K.S.A. 72-5518 and amendments thereto, except as provided in K.S.A. 72-5513 and amendments thereto for those who retire prior to age 60 because of physical or mental disability. All annuities shall be paid in equal monthly installments beginning on the first of September of that calendar year. The board may provide for types of life annuities and refund annuities to be selected by the school employee at the time of such school employee's retirement.

        No person shall receive a school retirement annuity while employed in any position wherein service credit is being earned toward benefits in another retirement system of the state of Kansas.

        No person shall be employed in school service while receiving a service or disability annuity provided by this act. If any person engaged in school service shall retire and has received one or more installments of a school annuity and thereafter shall reenter school service, such person shall not be entitled to any service credit for the time spent in school service after reentering such service, nor shall such person be entitled to receive any installments of the service annuity withheld from such person while engaged in such school service. Deductions shall not be made from such person's salary for such school service, except that any person who may have reentered school service as a constitutional officer shall be permitted to pay into the state retirement board 4% of the $5,000 of such person's salary as such officer, while in such service after reentry, and thereby become fully reinstated in the school retirement plan as of the time of such reentry into school service. Any person reentering school service as provided in this section and thereafter retiring again shall not be entitled to any installment payments of the service annuity until the first September following such last retirement from school service, except that any school employee retired as provided in this section may perform school service as a substitute employee, not to exceed 90 teaching days in any one school year. If such substitute employee continues in school service longer than 90 teaching days in any one school year, such substitute employee's retirement annuity shall cease and become effective again on the first September following such last retirement. Persons who are suspended annuitants on the day preceding April 25, 1969, shall be paid retroactively all savings annuity installments withheld.

        History:   L. 1941, ch. 341, § 12; L. 1951, ch. 410, § 1; L. 1953, ch. 339, § 4; L. 1957, ch. 398, § 1; L. 1961, ch. 342, § 3; L. 1965, ch. 414, § 4; L. 1967, ch. 383, § 1; L. 1969, ch. 327, § 4; L. 1998, ch. 64, § 23; July 1.

• 72-5512a:

        History:   L. 1963, ch. 380, § 2; Repealed, L. 1974, ch. 293, § 5; July 1.

• 72-5512b: Computation and payment of certain remaining state obligations; required assumptions and conditions of payment; payment from state general fund. On September 1, 1974, and March 1, 1975, the board of trustees of the Kansas public employees retirement system shall make such semiannual payments as would be required under former K.S.A. 72-5512a (repealed by this act) if said statute were not repealed. The actuary for Kansas public employees retirement system shall compute the remaining obligation of the state for employees remaining under the separate retirement system authorized by K.S.A. 72-1758 to 72-1769, inclusive, under former K.S.A. 72-5512a (repealed by this act) effective September 1, 1974, if said statute were not repealed. In making such computation, the actuary shall use the actuarial evaluation as of August 31, 1973, as submitted to the legislative budget committee adjusted for deaths occurring before September 1, 1974, and transfers of employees to the Kansas public employees retirement system under this act. In making such computation, the actuary shall use an interest assumption of six percent (6%), an assumed average retirement age of sixty-four (64) years and other actuarial assumptions in force for the Kansas public employees retirement system on September 1, 1974. Such actuary shall determine the level annual payments over a period of ten (10) years commencing on July 1, 1975, to retire such remaining obligation. The board of trustees of Kansas public employees retirement system shall include in its annual budget request an amount to make such payments on September 1 of each year commencing in 1975. Such board of trustees shall approve vouchers to be paid from appropriations from the state general fund for the purposes specified in this section.

        History:   L. 1974, ch. 293, § 4; July 1.

• 72-5513: Disability annuity; medical examinations; return to service. Any participating member in the Kansas school retirement system who has performed school service in Kansas for a period of fifteen (15) years or more, and who prior to age sixty (60) suffers such physical or mental disability as to be unable to perform school service, may be granted a disability annuity, the amount of which shall be a service annuity determined on the assumption that the member retired at age sixty (60) plus a savings annuity in the amount of the actuarial value of the savings account at the attained age. This amendment shall apply from and after July 1, 1967, to those persons who have been granted a disability annuity prior to that date and shall apply to those persons who shall be granted a disability annuity on or after July 1, 1967. In such cases the board is authorized to provide for medical examinations and to secure other evidence at the expense of the board. Such medical examinations shall be repeated at least once in every five (5) years, and may be ordered at any time until the annuitant attains age sixty-five (65). In case any person receiving a disability annuity shall recover, or if he shall refuse to be examined, then the disability annuity shall cease. But employment outside of school service at part-time work or at full-time work suited to a partly disabled person shall not of itself be sufficient reason to cease paying such disability annuity. In case any person receives a disability annuity and later recovers and returns to school service, the service record of that person shall include all school service, both before and after disability, but the retirement annuity finally paid shall be reduced by actuarial computation in proportion to the total amount of the disability annuity paid.

        History:   L. 1941, ch. 341, § 13; L. 1967, ch. 383, § 2; July 1.

• 72-5514: Correction of errors. In case an error has been made and an annuitant has been paid more or less than he is entitled to receive, and other satisfactory arrangements cannot be made, the board, insofar as that may be possible, shall adjust future annuity payments so as to correct the error, in accordance with actuarial computations: Provided, That no adjustment shall be made for an error in the service record not corrected as provided in K.S.A. 72-5511.

        History:   L. 1941, ch. 341, § 14; April 16.

• 72-5515: Deductions from salary; disposition of moneys; how credited. All boards and other agencies of the state of Kansas shall deduct four percent (4%) from the gross salary of any school employee as hereinafter provided. Such deductions shall be applicable only to the first five thousand dollars ($5,000) of the gross salary paid to any contributing full-time school employee in each school year. Such deductions shall be applicable only to the first two thousand five hundred dollars ($2,500) of the gross salary paid during a school year to any contributing school employee who is eligible to receive only one-half year of service credit in such school year. Such boards and other agencies of the state shall transmit quarterly the amounts so deducted, to the state retirement board, in such manner as the board may direct, and the retirement board shall pay the same into the state treasury and the state treasurer shall credit the same to the school employees savings fund.

        History:   L. 1941, ch. 341, § 15; L. 1953, ch. 339, § 5; L. 1965, ch. 413, § 2; L. 1969, ch. 327, § 5; April 25.

• 72-5516: Same; contracts deemed to include. All contracts for school services made after this act goes into effect, and all salaries of school employees set by statute, shall be deemed to include this provision for deductions: Provided, That in any case where an existing contract or legal obstacle forbids a deduction, the school employee concerned is hereby authorized to tender the amount of the deduction to the board for credit: Provided further, This section shall not apply to employees exempted under the provisions of K.S.A. 72-5509.

        History:   L. 1941, ch. 341, § 16; April 16.

• 72-5517: Same; permanent reserves; investment; interest prorated. The funds accumulated in the employees savings fund from such deductions shall be handled as permanent reserves. These reserves shall be invested by the investment committee only in assets eligible for the investment of funds of legal reserve life insurance companies in the state of Kansas as stated in K.S.A. 1968 Supp. 40-403c, with the exception of subsections (d), (i), (j), (k) and (l) of said section or as otherwise provided in this act: Provided, That total investments in common stocks permitted under such section may be made in an amount of up to twenty-five percent (25%) of the total book value of the fund and that the common stock of any bank which is a member of the federal deposit insurance corporation and has capital funds, represented by capital, surplus and undivided profits, of at least twenty million dollars ($20,000,000) shall be deemed eligible for investment under said section without regard to whether the common stock of such bank is registered on a national exchange under the securities exchange act of 1934: Provided further, That the term "admitted assets" stated in such section shall be deemed to mean the amount of the fund, and the provisions relating to limitation of investments as a percent of surplus and loans to policyholders shall be inapplicable with respect to investment of the fund. The board shall employ or retain qualified investment counsel or may negotiate with a trust company to assist and advise in the judicious investment of funds as herein provided for. All interest and income dividends received thereon shall be prorated at least once each twelve (12) months to the individual savings accounts. The board shall turn over all securities purchased to the state treasurer for safekeeping.

        History:   L. 1941, ch. 341, § 17; L. 1965, ch. 415, § 1; L. 1969, ch. 327, § 6; April 25.

• 72-5517a:

        History:   L. 1969, ch. 327, § 7; Repealed, L. 1973, ch. 286, § 1; July 1.

• 72-5518: Retirement annuities; early retirement reduction; supplemental benefits for certain retired persons; optional joint annuity. (a) On retirement each school annuitant shall receive:

        (1)   A savings annuity which shall be the actuarial equivalent of the amount credited to such annuitant's savings account, with due consideration of the option provisions in K.S.A. 72-5512 and amendments thereto, and

        (2)   a service annuity to be paid by the state of Kansas.

        The amount of any such service annuity shall be for persons who have: One to 9 1/2 years of school service in Kansas, $2.00 per month for each year. The service annuity of those having served for more than 9 1/2 years shall be the total of $6.85 per month for each year of the first 35 years of school service in Kansas, $3.50 per month for each year of school service in Kansas in excess of 35 years for benefits accruing during the period from September 1, 1979, to August 31, 1980, inclusive, and $6.85 per month for each year of school service in Kansas in excess of 35 years for benefits accruing on and after September 1, 1980.

        Those retiring with 25 or more years of school employment may count up to 10 years out-of-state service as a school employee if the last five years of school service immediately prior to retirement is in Kansas, but such persons who attain the 25 or more years benefit schedule by counting out-of-state service and those who attain said benefit schedule by counting nonmember service shall receive the total of $6.85 per month for each year of the first 35 years of Kansas school service, $3.50 per month for each year of Kansas school service in excess of 35 years for benefits accruing during the period from September 1, 1979, to August 31, 1980, inclusive, and $6.85 per month for each year of Kansas school service in excess of 35 years for benefits accruing on and after September 1, 1980. The service annuity for school employees who retire on or after September 1, 1969, between ages 60 and 64 shall be computed by applying a percentage to the standard rate allowable at age 65; such percentages according to age at the time of early retirement shall be:
  

  Age 60 ................. 80%
  Age 61 ................. 84%
  Age 62 ................. 88%
  Age 63 ................. 92%
  Age 64 ................. 96%
  
   
  

  Except that those who first become school employees after September 1, 1965, cannot qualify for any service annuity unless such employee accumulates at least 10 years of school service. Certain annuitants and former school employees shall be grouped for the purpose of granting extraordinary benefits, as follows:

        (A)   Group I shall consist of school annuitants and former employees who left school service prior to September 1, 1959, were born before 1895, and were school employees for at least 25 years. Any person in group I shall be entitled to have all years as a school employee counted as school service and a service annuity shall be granted in the total amount of $6.85 per month for each year of the first 35 years of Kansas school service, $3.50 per month for each year of Kansas school service in excess of 35 years for benefits accruing during the period from September 1, 1979, to August 31, 1980, inclusive, and $6.85 per month for each year of Kansas school service in excess of 35 years for benefits accruing on and after September 1, 1980.

        (B)   Group II shall consist of annuitants with at least 25 years of school employment, who were born before March 1, 1895, who retired prior to September 1, 1959, and are receiving a retirement annuity from a city board of education maintaining a separate retirement system. Any person in group II who is receiving an annuity from such city retirement system of a lesser amount per month than the total amount obtained by (i) multiplying $6.85 by the number of years engaged as a school employee in Kansas not exceeding 35 years and (ii) multiplying $3.50 by the number of years engaged as a school employee in Kansas in excess of 35 years for benefits accruing during the period from September 1, 1979, to August 31, 1980, inclusive, or multiplying $6.85 by the number of years engaged as a school employee in Kansas in excess of 35 years for benefits accruing on and after September 1, 1980, shall be entitled to receive monthly the difference in such amounts as a service annuity. After September 1, 1965, no additional group II annuitants shall be established; instead such separate city retirement systems are hereby authorized to increase the benefits of any such annuitant, whose membership has not heretofore been established in the Kansas school retirement system, to the amount of the service annuity an eligible annuitant with the same school service would be entitled to receive under the state school retirement system.

        (C)   Group III shall consist of annuitants who retired before September 1, 1956, with school service in excess of 35 years and who have not qualified for any social security benefits. Notwithstanding the limitations elsewhere imposed in this section, any person in group III shall be paid by the retirement system in which such person has established membership $6.85 per month for each year of school service, except that in the event any person who retires from school service qualifies for more than one service annuity under the provisions of this section, such person shall only be entitled to receive one service annuity which shall be the one which is the largest.

        (b)   Subject to the provisions of K.S.A. 74-49,123 and amendments thereto, the board shall provide for a joint annuity at the option of the school employee exercised at the time of, or prior to, the date of retirement from school service whereby the service annuity shall be actuarially reduced according to the age of the individual named by the school employee as the joint annuitant. The reduced service annuity will then be paid to the annuitant during such annuitant's lifetime and a like amount continued for the life of the joint annuitant should the joint annuitant survive the annuitant. In case the amount available in any fiscal year is not sufficient to pay all service annuities in full, the amount available shall be prorated among the claimants, but the deficiency shall not constitute a claim against the state of Kansas.

        History:   L. 1941, ch. 341, § 18; L. 1945, ch. 292, § 2; L. 1947, ch. 373, § 2; L. 1949, ch. 380, § 3; L. 1951, ch. 408, § 2; L. 1953, ch. 339, § 6; L. 1959, ch. 296, § 1; L. 1961, ch. 342, § 4; L. 1963, ch. 381, § 1; L. 1965, ch. 413, § 3; L. 1969, ch. 327, § 9; L. 1970, ch. 285, § 1; L. 1973, ch. 287, § 1; L. 1973, ch. 288, § 1; L. 1978, ch. 293, § 2; L. 1979, ch. 227, § 1; L. 1985, ch. 254, § 6; L. 1998, ch. 64, § 24; July 1.

• 72-5518a: Same; increases inclusive of increases provided by 74-4943. Benefit increases provided by this act shall be inclusive of increases provided by K.S.A. 74-4943 and shall accrue from July 1, 1973.

        History:   L. 1973, ch. 287, § 2; July 1.

• 72-5518b: Same; payments made under 72-5512a under provisions of school retirement system. Any aggregate payment made to a board of education under the provisions of K.S.A. 72-5512a shall be under the provisions of the state school retirement system on the day preceding the effective date of this act.

        History:   L. 1973, ch. 287, § 3; July 1.

• 72-5519: Quitting service before age sixty. In case any school employee shall quit school service before age sixty (60) (except as provided otherwise in this act) the board shall on request issue to him a certified statement of his service record and his savings account. No refund shall be made; no further payments shall be required from the employee (unless he returns to school service); interest shall continue to be credited to his account; and none of his retirement rights shall be canceled. At age sixty-five (65) such person shall become eligible to receive the annuity indicated by his service record and his savings account at the time of retirement. In case any school employee quits school service and moves from Kansas but continues in public school employment, and while so employed suffers so as to qualify under the provisions of K.S.A. 72-5513, such person shall become eligible to receive the annuity provided in K.S.A. 72-5513.

        History:   L. 1941, ch. 341, § 19; L. 1967, ch. 383, § 3; July 1.

• 72-5520: Refund upon quitting service, when; return to service. In case any school employee quits school service at any time, notwithstanding the provisions of K.S.A. 72-5519 and amendments thereto, the amount credited to such school employee's savings account, at the option of the school employee, shall be refunded to such school employee and such school employee's claims upon the retirement fund, service annuity fund and employees savings fund shall be terminated. In case any such school employee who has two or more years of service in Kansas later returns to school service, subject to the provisions of K.S.A. 74-49,123 and amendments thereto, such school employee may return the amount refunded to such school employee without either interest or penalty, and regain such school employee's original status with the retirement system if such employee returns the amount so refunded within 12 months after the date such school employee reenters school service and if such school employee continues in school service for at least one school year, except that such person withdrawing from school service shall not be permitted to make application for funds credited to such person's savings account until six months shall have expired after such person's withdrawal from school service.

        History:   L. 1941, ch. 341, § 20; L. 1953, ch. 339, § 7; L. 1963, ch. 381, § 2; L. 1998, ch. 64, § 25; July 1.

• 72-5521: Death of school employee; refunds. In case of the death of any school employee or annuitant before any installment of any annuity has been paid, the amount credited to his savings account shall be refunded to the estate of the deceased unless beneficiaries have been specifically designated by said school employee or annuitant. In case of the death of a school employee or annuitant after he has retired and selected the type of annuity as provided in K.S.A. 72-5512, the provisions of such annuity shall govern any refunds to be made except that any unpaid service annuity shall be paid to the estate of the deceased unless beneficiaries have been specifically designated by said annuitant. Except as provided in K.S.A. 72-5520 and in this section, there shall be no refunds or payments to the heirs of any school employee or annuitant.

        History:   L. 1941, ch. 341, § 21; L. 1951, ch. 408, § 3; April 2.

• 72-5522:

        History:   L. 1941, ch. 341, § 22; L. 1947, ch. 373, § 3; L. 1967, ch. 383, § 4; L. 1969, ch. 327, § 8; Repealed, L. 1973, ch. 286, § 1; July 1.

• 72-5523:

        History:   L. 1941, ch. 341, § 23; Repealed, L. 1947, ch. 373, § 4; July 1.

• 72-5524: Limitation of actions to recover refund or installment; qualifying conditions. In case no claim or suit is filed for the recovery of any refund or annuity installment due under the provisions of this act within five years after the same is due and payable, the amount of any such refund or annuity installment due and payable from the school employees savings fund shall be transferred to the state school service annuity fund: Provided, If any such person shall present satisfactory evidence to the board that his failure to file such application within said time period was due to lack of knowledge or incapacity on his part, the total amount originally due shall be paid such person from the state school service annuity fund.

        History:   L. 1941, ch. 341, § 24; L. 1974, ch. 302, § 1; July 1.

• 72-5525: Audits. The retirement system shall be subject to supervision and audit in the same manner and by the same agencies as other departments of the state. The board shall have authority either to conduct or to require audits of those accounts of the boards and agencies designated by this act to make deductions which affect the retirement system.

        History:   L. 1941, ch. 341, § 25; April 16.

• 72-5526: Unassignability; exemptions. Annuities and refunds provided herein shall not be assignable. Any credit due any school employee or any payments made or to be made, as provided in this act, shall not be subject to sale or execution and shall not be subject to garnishment or attachment.

        History:   L. 1941, ch. 341, § 26; April 16.

• 72-5527: Perjury; penalties. Any person who shall, with intent to defraud, make any false statement or falsify any record required by virtue of the provisions of this act or any rule or regulation of the board, shall be deemed guilty of perjury and upon conviction thereof shall be punished by a fine not exceeding five hundred dollars, or by imprisonment for a term of not less than one year nor more than five years, or by both such fine and imprisonment.

        History:   L. 1941, ch. 341, § 27; April 16.

• 72-5528: Ad valorem tax prohibited. It is hereby determined and expressly provided that no ad valorem tax shall ever be levied to provide funds for the administration of this act or for the payment of any benefits hereunder.

        History:   L. 1941, ch. 341, § 28; April 16.

• 72-5529: Right to amend act reserved. The legislature hereby reserves the right to amend any section, paragraph, or any and all provisions of this act, as it may from time to time deem necessary.

        History:   L. 1941, ch. 341, § 29; April 16.

• 72-5530: Invalidity of part. If any section or part of a section of this act shall be held unconstitutional by any court, it shall be conclusively presumed that the legislature would have passed this act without such invalid section or part of a section, and the remaining provisions shall be given full force as if the part held unconstitutional had not been included herein.

        History:   L. 1941, ch. 341, § 30; April 16.

• 72-5531:

        History:   L. 1941, ch. 341, § 31; L. 1963, ch. 381, § 3; L. 1965, ch. 413, § 4; Repealed, L. 1998, ch. 64, § 95; July 1.

• 72-5532: Income tax exemption of school annuities. All school annuities paid under this act and the act to which this act is amendatory shall not be subject to taxation under the Kansas income tax act.

        History:   L. 1953, ch. 339, § 8; April 3.

• 72-5533: Employees in school service one-half time; and employed by a nonschool agency of the state one-half time. If a school employee as provided in K.S.A. 72-5515, is eligible to receive only one-half of service credit in a school year and deductions are applicable only to the first two thousand five hundred dollars ($2,500) of the gross salary paid during a school year for school service, is also employed at least one-half time by an agency of the state of Kansas in nonschool service such school employee may request in writing to the school employer on such forms as may be required by the retirement board, that the four percent (4%) deduction be applicable to the first five thousand dollars ($5,000) of the combined gross salaries. Such deduction shall be made by the school employer entirely from the salary for school service and remitted and credited the same as other such deductions. Upon receipt of such written request and deductions the retirement board shall grant full service credit as provided in K.S.A. 72-5501. In the event such nonschool service does not extend over the full school year the retirement board shall have sole discretion to determine if full service credit shall be granted.

        History:   L. 1969, ch. 329, § 1; July 1.

• 72-5534: Same; time effective. This act may be applicable to such school and nonschool service performed on and after July 1, 1967, provided the employee remits the required amount not previously deducted: Provided, however, On and after the beginning of the school year 1969 the request must be made within fifteen (15) days following the beginning of the school year.

        History:   L. 1969, ch. 329, § 2; July 1.

• 72-5535:

        History:   L. 1972, ch. 304, § 1; L. 1973, ch. 289, § 1; L. 1974, ch. 303, § 1; L. 1979, ch. 228, § 1; L. 1983, ch. 239, § 1; Repealed, L. 1984, ch. 289, § 28; July 1.

• 72-5536: Retirement annuities; benefits for noncredited school service for certain special members of Kansas public employees retirement system. (a) Notwithstanding the provisions of subsection (e) of K.S.A. 72-5501 and subsection (b) of K.S.A. 72-5518 and amendments thereto, any special member receiving benefits under the state school retirement system, whose combined years of credited and noncredited service equal 10 or more, shall receive a full service annuity of $6.85 per month for each year of credited service and a service annuity of $3.00 per month for each year of Kansas school service not previously used in the calculation of the member's benefit.

        (b)   Any special member entitled to any annuity for noncredited service shall notify the office of the Kansas public employees retirement system of such service and the benefit shall commence the first day of the month following receipt of verification of such service.

        History:   L. 1985, ch. 254, § 28; July 1.