The Kansas Senate has approved a bill that will allow the state to issue up to one billion dollars in pension bonds.
State Senator Jeff Longbine said the funding will be used to shore up KPERS, the Kansas Public Employees Retirement System, and reduce unfunded liability. “There’s a number of safety measures in the bill which allowed me some comfort on it. First of all we have to be able to borrow the money below five percent.”
Longbine added KPER’s returns over the last 25 to 30 years have always averaged more than eight percent. Projections show if the state can earn eight percent, Kansas will save more than $300 million over the life of the bonds.
Longbine’s 17th Kansas Senate district includes Junction City.