TOPEKA, Kan. (AP) — A Kansas House committee is reviewing Gov. Sam Brownback’s proposal to issue $1.5 billion in bonds to help lower the state’s annual costs in funding pensions for teachers and government workers.
The House Pensions and Benefits Committee’s will discuss a bill authorizing the bonds if the state would pay interest of 5 percent or less to bondholders. A meeting scheduled for Monday was postponed so members could attend a funeral.
The Kansas Public Employees Retirement System has a projected long-term funding gap of $9.8 billion, and the state has committed to raising annual contributions to eliminate it by 2033.
The bonds would give KPERS an infusion of cash, boost its investment earnings and allow the state to lower annual contributions of tax dollars.
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