The committee held an informational hearing on Senate Bill 282, which would create a Kansas Retirement Investment and Savings Plan (CRISP) — a defined‑contribution (DC) retirement plan that staff said would be effective July 1, 2027 for most new hires who do not opt out and available by election to some current KPERS members.

What SB 282 would do (staff summary): David (KPERS staff) and Executive Director Alan Conroy summarized the bill, saying it would establish a separate DC fund administered by KPERS, permit rollovers, and require a separate defined‑contribution fund in the state treasury. Key design points in the draft language included: a mandatory 6% member contribution to a mandatory account, an initial 1% deferred‑compensation auto‑enrollment that would escalate by 1% annually up to 10% (members may change or stop the deferred‑comp contribution), and a base employer contribution of 4% with an additional 0.5% or 1% employer match if the member participates at certain levels in the deferred‑comp account. Employer contributions would vest after five years. Staff emphasized that the existing unfunded actuarial liability (UAL) for the defined‑benefit plan would remain an employer obligation under the bill.

Exclusions and elections: SB 282 as drafted would exclude members of the police and fire retirement system, judges, and security officers defined in statute. The bill would allow one‑time, irrevocable elections by existing KPERS members to switch into CRISP; it would also set a default for new hires who fail to elect (CRISP default for first employment on or after the effective date).

Costs and transition modeling: KPERS staff told the committee preliminary scenarios in which 10% of members elect CRISP would transfer about $800 million out of the trust fund, while a 50% election scenario could transfer about $4 billion (representing roughly 3–13% of the trust fund depending on the scenario). Staff noted a planned implementation runway (about 18 months in the draft) and the need to manage liquidity if large transfers occurred.

Outside testimony — proponents and opponents: Reason Foundation policy analyst Zachary Christiansen testified that a DC option increases portability for a mobile workforce, meets DC best‑practice contribution targets and would reduce the growth of pension liabilities over the long term; he recommended offering a robust, well‑designed DC option. Scott Colangelo, an investment‑industry witness, told the committee modern DC plans can be designed with guaranteed income features that protect retirees (he described collective trust/insurance structures used in the private sector). Americans for Tax Reform state affairs manager Dennis Hall testified for taxpayers, saying DB plans are a “deferred taxpayer liability” and that DC plans better protect taxpayers and increase worker autonomy.

Concerns and committee questions: Committee members raised questions about liquidity and the implementation runway, whether the trust fund could liquidate assets quickly without realized losses, and whether employer contributions could be guaranteed year to year. Witnesses and staff described hedging and implementation steps that would mitigate immediate market impacts but acknowledged there is practical stress if very large, rapid transfer volumes occur. Lawmakers also asked about who would be allowed to change elections, whether members could switch back if markets move, and how beneficiary and annuity options would be offered under CRISP. Staff said the draft provides one‑time, irrevocable elections and that members could purchase guaranteed annuities at retirement through plan options.

Committee outcome and recommendations from the hearing: The committee concluded the informational hearing with several internal recommendations to the 2026 legislative session. The committee voted to recommend a one‑time $500 million payment into the KPERS unfunded actuarial liability as a committee recommendation to the Legislature; additionally the committee recorded support or asked the Legislature to consider (1) passage of HB2086 (changes to the CAPERS 3 dividend interest credit), (2) exploring expansion of the DROP program to school employees in the interim, and (3) exploring options to address cost‑of‑living adjustment concerns and possible pay‑fors. Several legislators said the outcomes of any CRISP proposal would turn on transition mechanics, the exact contribution design and protections for existing liabilities.

Ending: Committee staff recorded the hearing and distributed written testimony from multiple parties. Committee members asked staff to provide additional modeling and implementation detail if the bill is filed in the 2026 session.