Kansas Statutes 74-49,308. Retirement annuity account; interest credits; additional interest credits, determination; credits upon termination
Terms Used In Kansas Statutes 74-49,308
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- member: means any member of the Kansas police and firemen's retirement system who is eligible to participate in the DROP and who elects to participate in the DROP as provided in this act;
(7) "monthly DROP accrual" means the amount equal to the monthly retirement benefit that would have been payable to the member had the member terminated service and retired on the day the member elected; and
(8) "system" means the Kansas police and firemen's retirement system. See Kansas Statutes 74-4986l
- retirement annuity account: means the account established for employer credits of members under Kan. See Kansas Statutes 74-49,302
- system: means the Kansas public employees retirement system. See Kansas Statutes 74-49,302
(a) A member‘s retirement annuity account is the sum of all employer credits to the account plus the interest credits on the account, which shall be credited no less frequently than quarterly, based on the account balances as of the last day of the preceding quarter. Effective January 1, 2015, the interest credits are 4% per annum. The legislature may from time to time prospectively change the interest credits, and expressly reserves the right to do so.
(b) The board shall provide for an annual additional interest credit. The additional interest credit shall be posted to the member’s retirement annuity account on March 31 or as soon as practicable, based on the member’s account value as of December 31 of the preceding year. The additional interest credit shall be determined as follows:
(1) For the annual additional interest credit based on the member’s retirement annuity account balance as of December 31, 2015, the dividend shall be equal to 75% of the average net rate of return as determined by the board for calendar year 2015 on the market value of the system‘s assets that is above 6%, except that such additional interest credit shall not exceed 1.5%;
(2) for the annual additional interest credit based on the member’s retirement annuity account balance as of December 31, 2016, the dividend shall be equal to 75% of the average net rate of return as determined by the board for calendar years 2015 and 2016 on the market value of the system’s assets that is above 6%, except that such additional interest credit shall not exceed 1.5%;
(3) for the additional interest credit based on the member’s retirement annuity account balance as of December 31, 2017, the dividend shall be equal to 75% of the average net rate of return as determined by the board for calendar years 2015, 2016 and 2017 on the market value of the system’s assets that is above 6%, except that such additional interest credit shall not exceed 1.5%;
(4) for the additional interest credit based on the member’s retirement annuity account balance as of December 31, 2018, the dividend shall be equal to 75% of the average net rate of return as determined by the board for calendar years 2015, 2016, 2017 and 2018 on the market value of the system’s assets that is above 6%, except that such additional interest credit shall not exceed 1.5%; and
(5) for the additional interest credit based on the member’s retirement annuity account balance as of December 31, 2019, and all calendar years thereafter, the dividend shall be equal to 75% of the five-year average net compound rate of return as determined by the board for that calendar year and the previous four calendar years on the market value of the system’s assets that is above 6%.
(c) For a member to be eligible for an additional interest credit, the member shall have an account balance at the time the interest credit is posted to the account.
(d) Interest credits under subsections (a) and (b) shall not be granted on the member’s non-vested retirement annuity account following the end of the second plan year following the member’s termination of employment covered under the plan.