Plan for $1.5B in pension bonds stalls

TOPEKA, Kan. (AP) — Legislation authorizing $1.5 billion in bonds to bolster the Kansas pension system for teachers and government workers has stalled in the state Senate.

A leading backer of the measure, House Pensions Committee Chairman Steve Johnson, said Wednesday the measure is now “dead in the water.”

Johnson commented after Senate Ways and Means Committee Chairman Ty Masterson said he won’t bring up the bill unless it’s tied to a plan for starting a 401(k)-style pension plan for public employees.

The House approved the bonding bill last month, but its pensions committee tabled a proposal for a new 401(k)-style public pension plan.

If the bonds were issued, the state would pour the funds into the pension system, quickly boosting its assets.

 

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