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Kansas Governor Endorses 401(k) Pension Plan For Teachers, Government Workers

A Kansas commission’s proposal to create a 401(k)-style pension plan for new teachers and government workers has received a big public endorsement from Gov. Sam Brownback.

The governor mentioned the proposal during his annual State of the State address Wednesday evening. He called a 401(k)-style plan for new hires, in his words, “honest” and said it would move the state away from having an unsound public pension system.

The Kansas Public Employees Retirement System projects an $8.3 billion gap between anticipated revenues and benefits promised to workers through 2033. Its traditional plans guarantee benefits up front, based on a worker’s salary and years of service, rather than tying them to investment earnings.

Critics contend such a change will shortchange new employees without attacking the long-term KPERS funding gap.

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