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Good compromise on KPERS

Legislative negotiators reached a good compromise on reforming the Kansas Public Employees Retirement System, agreeing to create a commission to study whether the state should switch to a 401(k)-style plan. The House had wanted new public employees hired after July 1, 2013, to be enrolled in a 401(k)-style plan. But such a move would be costly and make it even more difficult to cover KPERS' unfunded liability. Though the state may want to move toward a defined-contribution plan, it first needs to evaluate the legal, financial and administrative issues involved with such a change. It needs to look before it leaps.