S.B. 15, as amended, relates to the Kansas Public Employees Deferred Compensation Plan, and would amend K.S.A. 40-3003 and 40-3008 to make statutory the responsibility of the Kansas Life and Health Insurance Guaranty Association to provide coverage up to the $100,000 limit for unallocated annuity contracts of individual state employees participating in the deferred compensation plan. Guaranty coverage would be provided for only those certificates under direct group policies and contracts issued by an insurance company that is a member of the Guaranty Association.
S.B. 15 was introduced by the Legislative Post Audit Committee in response to a performance audit report entitled "Reviewing the Kansas Public Employees' Deferred Compensation Program." The audit found that statutes relating to the state deferred compensation program do not address the issue of liability of the Kansas Life and Health Insurance Guaranty Association for moneys invested by state employees in fixed accounts (unallocated annuity contracts) if the investment provider should ever become insolvent. The bill would make clear that the Guaranty Association would be liable for losses on unallocated annuity contracts up to the limit of coverage provided in the Guaranty act. The House Committee amendment was technical in nature.
The Division of the Budget indicates the bill would have no fiscal effect.
1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext-bill.html.