Kan. House panel backs away from 401(k)

TOPEKA, Kan. (AP) - A Kansas House committee appears to be backing away from a proposal to start a 401(k)-style plan for new teachers and government workers.

The House Pension and Benefits Committee began work Monday on a new plan for overhauling the Kansas Public Employees Retirement System.

Chairman Mitch Holmes, a St. John Republican, and Vice Chairman John Grange, an El Dorado Republican, outlined separate proposals for a retirement plan for new hires.

Their proposals wouldn't continue existing KPERS plans that guarantee benefits up front based on a worker's salary and years of experience. But benefits also wouldn't be based solely on investment earnings, as they are in a 401(k) plan.

Public employee groups saw it as significant movement toward a compromise. The groups strongly oppose creating a 401(k)-style plan.