TOPEKA (AP) – Kansas House members are getting their first look at a proposal to create a 401(k)-style pension plan for new teachers and government workers.
The House Appropriations Committee is scheduled to review the proposal during a meeting Tuesday. The measure was drafted by a commission studying pension issues.
Supporters of the proposal contend the state can’t sustain its current public system, which guarantee benefits up front based on a worker’s salary and years of service. The 401(k) plans that are common among private businesses tie benefits to investment earnings.
The Kansas Public Employees Retirement System projects an $8.3 billion gap between anticipated revenues and the benefits promised to public employees.
Critics say starting a 401(k)-style plan for new hires won’t do anything to close the long-term funding gap.