Committee presses whether agencies should restore KPERS employer contributions after rate change

A legislative budget committee on Wednesday examined why many agencies show reduced employer contributions to KPERS (Kansas Public Employees Retirement System) in their FY26–FY27 budgets and whether the legislature should direct agencies to restore higher payments.

The chair raised the issue during the Kansas Water Office budget review, asking: “So why are we putting less in? It's not going to improve the unfunded liability.” Luke Drury, the committee’s senior fiscal analyst, responded that Department of Administration adjustments produced the reductions across agencies and that he was “unfamiliar… whether or not that is something the department [of administration] has to do, statutorily,” but he believed the legislature could act.

Several senators urged caution and additional analysis. Senator Alley suggested the committee invite KPERS or the Department of Administration to explain the mechanics of the changes before making a recommendation. Other members, including Senator Francisco, noted that KPERS considerations span many state budgets (including school districts) and urged statutory review and Ways and Means coordination.

The committee chair said he will recommend to Ways and Means that agencies continue contributions to KPERS rather than accept reduced amounts from the Department of Administration’s directive, and he asked staff to prepare statutory and budgetary analyses. No formal committee direction was adopted in the session; members plan follow‑up work tomorrow and in subsequent budget hearings.