Kansas committee hears bill to create CRISP defined-contribution option for new state hires

The committee opened a hearing on Senate Bill 282 on the creation of the Kansas Retirement Investment and Savings Plan, or CRISP, which would make a default defined-contribution retirement plan available to new state and local employees beginning July 1, 2027.

Committee advisor Eileen gave a quick overview of the bill, saying it "would establish the Kansas Retirement Investment and Savings Plan Act," would add new statutory sections and would amend KSA 70-44-920. Eileen said the plan would take effect on July 1, 2027, and that the statute reserves the legislature's right to change the plan's provisions prospectively.

The bill would direct the KPERS board to establish a CRISP program and ancillary components, including a deferred compensation plan. According to testimony, the bill would permit employers to fund start-up and administrative costs via a loan from the pooled money investment program (PMIP) repaid with participant fees. The bill text described member and employer contribution rules, vesting, rollover treatment, investment policy requirements, death and disability benefits, and how a member could elect distribution options after termination.

Alan Conroy, a staff member who gave actuarial and technical background, told the committee the core policy choice is who bears investment risk. "It really comes down to the…