TOPEKA, Kan. (AP) – A commission agreed Wednesday to consider proposing that Kansas start a 401(k)-style pension plan for new teachers and government workers. But members also expect to mull over a less aggressive alternative that creates such a plan only for higher-wage employees.
The pension study commission also promised to discuss other ideas for improving the future financial stability of Kansas’ public pension system. The possibilities include issuing up to $5 billion in bonds to close a long-term gap in the system’s funding and additional increases in the state’s contributions to retirement benefits.
Kansas’ Governor Sam Brownback tells the Associated Press the state can’t sustain its current pension system, known as “defined benefit” because benefits are guaranteed up front, regardless of the system’s revenues and investment earnings.