The Kansas Public Employee Retirement System (KPERS) has been a major topic of discussion for the last several years. As your State Treasurer, I am a member of the KPERS Board. The Board has a fiduciary responsibility to manage the assets for the benefits of the members, and not to make positions on the legal structure. But as State Treasurer (and a Tier 1 KPERS member), I encourage the Legislature and the Governor to pass some necessary changes this year.

KPERS is a valuable benefit for state employees, local school employees, and most local government employees. It serves over 260,000 active and inactive members and retirees. As you have heard, KPERS is projected to be $8.3 Billion short in paying promised benefits to all current employees and retirees. But let me reassure you that KPERS has $13.5 Billion in assets (approximately 62% of what is needed) today – enough to pay benefits for all current retirees and most employees that will retire in the next 10-15 years. KPERS needs a solution that addresses two critical issues: (1) makes the system solvent for all current employees and (2) provides a stable plan for all future employees. If we don’t take action now, we are at risk of having our bond rating lowered and KPERS will consume even more of our state budget at the expense of other vital state services to Kansans in the future.

Several things have caused our retirement system to get in this condition, but the primary reason is the Legislature was given some bad advice in 1993. They were told the benefits could be raised and the contributions held low for the employers and the employees (at 4% of salary). By the late 1990’s the Legislature saw contribution levels were not high enough, and began to raise them. In order to not impact the state and local budgets too harshly they limited the annual increases. Finally, in 2009 they were forced to raise the employee contributions and created the Tier 2 level.

Even though the KPERS investments have achieved the 8% investment rate of return over the last 30 years, these changes have not been enough to adequately fund the plan.

I have followed the process in the legislature and the Study Commission very closely and provided input as the process has moved forward. Recently, the House of Representatives passed a bill that addresses these critical issues. House Substitute for Senate Bill 259 increases the contribution amount for the state and local government employers. It also sets requirements for Tier 1 and Tier 2 employees to be equal. Tier 1 employees will contribute at a 6% rate in exchange for an increase in benefits to 1.85% times each year worked. Tier 2 employees will continue to contribute 6% and will receive an increase in benefits to 1.85% times each year worked in exchange for the cost of living adjustment.

In addition, the bill creates a Tier 3 for new employees hired after 2014. These new employees would have a choice to pick a Defined Contribution (DC) Option similar to a 401(k) in private industry or a Cash Balance Option. The DC Option would allow employees to contribute 6% to their own account and make their own investment decisions. In today’s world it is imperative that we give state employees the freedom and flexibility to control their retirement future.

In the Cash Balance Option, an employee contributes 6% and the employer adds up to 4%. The employee is guaranteed a 5% return as their benefit. This is an option for employees who plan a long term career with a state or local government employer.

I encourage the Legislature to pass and the Governor to sign a bill like 259. It is not the exact solution I would have preferred and I expect further changes as this process moves forward, but it provides choices for future employees and continues benefits promised to existing employees. It addresses both critical issues by not digging the hole any deeper for future employees, empowers those employees who wish to take control of their own retirement by giving them the flexibility to do so, and begins to close the existing funding gap. Significant structural KPERS reform must happen this year. Our state cannot afford to put this off yet again.

Ron Estes
Kansas State Treasurer

I have reviewed HUNDREDS of resumes & cover letters (i.e. applications). This may not make me an expert, but it does provide me experience to share, especially with those new to the workplace or simply struggling to schedule that elusive interview.

Let me first make two comments:
-A great resume/cover letter rarely gets you the job – it gets you the interview. I consider my own applications successful if it opened the door to a positive discussion about my qualities, skills and experience.
-During my 5 years as customer service supervisor for a local telecommunications company, I averaged hiring one new employee per month. After you do the math (I led an entry-level department where often my employees were “stolen” by other departments within the company, so I experienced HIGH turnover), keep in mind the gobs of applications I read in my effort to select each candidate. I now also teach a college course so students can best promote themselves in the marketplace – and yes, one assignment is to prepare a cover letter with resume.

Those applying with sloppy, grammatically-incorrect materials are a waste of time both in the workplace and in this column. However, I love to help those who want to help themselves. So when I review materials, I always make sure to stress these are my suggestions only…I am not the expert on your skills, your experience, your goals or your life plan. I’m also not the expert on your target audience – but you should be! Researching the company you are interested in is one VITAL step often overlooked in our desire to have a typo-free resume. Whether you Google the company, speak to an employee, or actually step into the building to pick up brochures/materials, observe everything from dress code to the look-and-feel of the environment (i.e. office culture). Some of these cues will aid you in presenting yourself most appropriately for the position and environment.

Here are some other specific tips to consider:

Your Cover Letter:
-Truly consider what makes you outstanding compared to others – stress those aspects.
-Explain how education, talent, skills, etc. prepares you for this job. Don’t just list your past experiences.
-Getting an interview is the PURPOSE of the letter – don’t put limitations on when people can contact you.
-Be creative and interesting – this is your opportunity to shine, even if for a few seconds.
-Be as specific about the job you are applying for – a “shotgun” approach to sending out resumes is often not successful and appears lazy to the potential employer.

Your Resume:
-Punch your skills or job duties with action verbs. Start each “bullet” after specific work experience with powerful words.
-For routine jobs, focus on skills gained versus the duty itself. For instance “taking the trash out” can be written as “developed discipline and strong work ethic.”
-Consider the order of importance – should you list in chronological order or jobs most pertinent?

Your References:
-Always ask permission to use others for a reference!
-Ask if they will provide you a GOOD reference.
-Don’t use a reference who has fired you.
(No joke, this has happened to me!)

I don’t hire people with bad references and may choose not to hire based on whether the applicant first asked the reference for permission. (I consider this to be both an aspect of respect as well as attention to details.) I can also assure you if someone used me as a reference without my consent, he/she rarely got the job.