Lawmakers Mulling Over $1.5B In Bonds For State Pension System
A Kansas House committee is reviewing Governor Sam Brownback's proposal to issue $1.5 billion dollars in bonds, to help lower the state's annual costs in funding pensions for teachers and government workers.
The House Pensions and Benefits Committee's focus today is on a bill authorizing the bonds if the state would pay interest of 5 percent or less to bondholders.
The Kansas Public Employees Retirement System, or KPERS, has a projected long-term funding gap of $9.8 billion dollars, and the state has committed to raising annual contributions to eliminate it by 2033.
The bonds would give KPERS an infusion of cash, boost its investment earnings and allow the state to lower annual contributions of tax dollars.
Brownback also has proposed taking 10 years longer to close the long-term funding gap, until 2043