Governor Sam Brownback and Administration Secretary Jim Clark Issue Statements on SEC Settlement

Press Release

Today Governor Sam Brownback and Secretary of Administration Jim Clark issued statements following an announcement by the Securities & Exchange Commission that it issued a Notice of Settlement for claims occurring from August 2009 to July 2010.

Statement from Governor Sam Brownback

"Since taking office, I have made restoring the health of our KPERS system a priority. Reforms passed by the legislature in 2012 resulted in an improved KPERS system, benefiting our teachers and other public employees. Through reforms that included boosting employer and employee contributions and creating a new cash balance plan for individuals hired after 2015, we have taken what was once the second-worst funded pension system in the nation and made significant strides, including reducing its projected debt by almost $500 million. Under my administration, we have improved transparency in the reporting system and taken decisive actions to meet our existing obligations and maintain the trust of our state workers and retirees."

Statement from Kansas Secretary of Administration, Jim Clark

"The SEC spent several years obtaining documents and reviewing bond disclosures made under prior administrations between August 2009 and July 2010 and determined that Kansas did not properly disclose pension liabilities and other KPERS information in the Comprehensive Annual Financial Report (CAFR) or bond offerings. Governor Brownback's administration took prompt action in 2011 to adopt new disclosure policies and procedures and to include the relevant KPERS information in the CAFR. The SEC has considered these changes and we are pleased that the SEC did not seek any financial penalties or make any claims of intentional misconduct based on the actions of former administrations. We remain committed to complying with all disclosure requirements and require training and updating of the policies and procedures annually."

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