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Kansas House Advances Retirement Plan Proposal

The Kansas House has advanced a bill that would move the state toward 401(k)-style retirement plans for teachers and government workers. The state pension system faces a nearly 8 billion dollar deficit over the next 30 years. The bill would require employees hired after July 1st, 2013, to join a 401(k)-style plan, instead of the state pension plan. Representative Ed Trimmer, a Winfield Democrat, opposed the bill. He said keeping new employees out of the pension system would make the funding problem worse.

After the new 401(k) plan started, current employees would be able to opt-in, or see their benefits lowered. Supporters of the bill say it’s a step in the right direction to help Kansas solve its pension problem.

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