Retirement benefits - Kansas

Summary of differences between federal and state regulations

Employee benefits are generally covered under the federal jurisdiction of the Employee Retirement Income Security Act (ERISA).

Federal ERISA plans generally do not have to comply with state laws. ERISA rules preempt or block state laws that relate to ERISA plans. State insurance laws, however, do apply.  Under Kansas laws, if the employee is receiving retirement benefits and has a workers’ compensation claim, the workers’ compensation benefits are reduced by the weekly equivalent amount of the total amount of all retirement benefits less payments or contributions made by the employee.

Pursuant to HB 2669, and effective July 1, 2006, an employer may withhold, deduct or divert wages if the deductions are for contributions attributable to automatic enrollment. Applicable contributions are for automatic enrollment retirement plans, including 401(k) or 403(b) plans; section 457 governmental deferred compensation plans; section 408 or 408A payroll deduction IRA plans.

The bill also provides for an immunity allowance for automatic enrollment requirements for these employee plans by allowing that any employer who provides for automatic enrollment in an employee retirement plan outlined in the bill would be relieved from liability for the actual decisions made by the employer on behalf of any participating employee as to the default investment of contributions made for that employee to the plan or program provided that:

• The plan allows the participating employee at least quarterly opportunities to select investments for the employer’s contributions between investment alternatives available under the plan;
• The employee is given notice of the investment decisions that will be made in the absence of the participant’s direction, a description of all the investment alternatives available for employee investment direction under the plan, and a brief description of the procedures available for the employee to change investments; and
• The employee is given at least annual notice of the actual default investments made of contributions attributable to the employee. Employees contribute through a salary reduction plan.

State

Contact

Kansas Insurance Department

Regulations

Kansas Statutes, §44-501

Federal

Contact

Employee Benefits Security Administration (EBSA), Office of the Assistant Secretary

Regulations

29 CFR chapter XXV (Parts 2509 – 2590)