SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED)
For the fiscal year ended December 31, 1993
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from to
Commission file number 1-707
A. Full title of the Plan:
Kansas City Power & Light Company
Cash or Deferred Arrangement
(Employee Savings Plus) (hereinafter
referred to as "Plan")
B. Name of issuer of the securities held
pursuant to the Plan and the address
of its principal executive office:
Kansas City Power & Light Company
1201 Walnut
Kansas City, Missouri 64106-2124
TABLE OF CONTENTS
Page
FINANCIAL STATEMENTS
Report of Independent Accountants. . . . . . . . . . . . . . .1
Statements of Financial Condition, With Fund Information
December 31, 1993 . . . . . . . . . . . . . . . . . . . . .2
December 31, 1992 . . . . . . . . . . . . . . . . . . . . .4
Statements of Income and Changes in Plan Equity, With Fund
Information for the Year Ended
December 31, 1993 . . . . . . . . . . . . . . . . . . . . .5
December 31, 1992 . . . . . . . . . . . . . . . . . . . . .7
December 31, 1991 . . . . . . . . . . . . . . . . . . . . .8
Notes to Financial Statements. . . . . . . . . . . . . . . . .9
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . 15
Consent of Independent Accountants . . . . . . . . . . . . . 16
REPORT OF INDEPENDENT ACCOUNTANTS
To the Administrative Committee,
Kansas City Power & Light Company
Cash or Deferred Arrangement Employee Savings Plus Plan
We have audited the accompanying statements of financial condition of Kansas
City Power & Light Company Cash or Deferred Arrangement Employee Savings Plus
Plan as of December 31, 1993 and 1992, and the related statements of income
and changes in Plan equity for each of the three years in the period ended
December 31, 1993. These financial statements are the responsibility of the
Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial condition of the Plan as of December 31,
1993 and 1992, and the related statements of income and changes in Plan equity
for each of the three years in the period ended December 31, 1993, in
conformity with generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The Fund Information in the statement
of financial condition and the statement of income and changes in Plan equity
is presented for purposes of additional analysis rather than to present the
statement of financial condition and the statement of income and changes in
Plan equity of each fund. The Fund Information has been subjected to the
auditing procedures applied in the audits of the basic financial statements
and, in our opinion, are fairly stated in all material respects in relation
to the basic financial statements taken as a whole.
/s/Coopers & Lybrand
COOPERS & LYBRAND
Kansas City, Missouri
May 31, 1994
<TABLE>
Kansas City Power & Light Company
Cash or Deferred Arrangement Employee Savings Plus Plan
Statement of Financial Condition, With Fund Information
December 31, 1993
Fidelity Investment Funds
ASSETS Asset OTC
Investments: MIP Puritan Magellan Manager Portfolio Overseas
<S> <C> <C> <C> <C> <C> <C>
Short term money market
Kansas City Power & Light Co. Stock
2,099,174.5222 shares at market
(cost $38,519,177) - - - - - -
Fidelity Managed Income Portfolio
(MIP) at market (cost $6,147,056) 6,147,056 - - - - -
Fidelity Puritan Fund
507,811.4505 shares at market
(cost $7,197,937) - 7,998,031 - - - -
Fidelity Magellan Fund
269,680.8401 shares at market
(cost $16,351,289) - - 19,106,887 - - -
Fidelity Asset Manager Fund
12,700.5360 shares at market
(cost $194,225) - - - 195,588 - -
Fidelity OTC Portfolio
3,156.5401 shares at market
(cost $78,849) - - - - 76,199 -
Fidelity Overseas Fund
3,835.4313 shares at market
(cost $102,625) - - - - - 105,206
Loans receivable from participants - - - - - -
Receivables:
Money market interest 4 15 36 1 - 2
Commission reimbursement - - - - - -
TOTAL ASSETS $6,147,060 $7,998,046 $19,106,923 $195,589 $76,199 $105,208
LIABILITIES AND PLAN EQUITY
Liabilities:
Benefits payable to participants $ 76,477 $ 54,340 $ 64,211 $ - $ - $ -
Plan Equity 6,070,583 7,943,706 19,042,712 195,589 76,199 105,208
TOTAL LIABILITIES AND PLAN EQUITY $6,147,060 $7,998,046 $19,106,923 $195,589 $76,199 $105,208
The accompanying Notes to Financial Statements are an integral part of these statements.
</TABLE>
<TABLE>
Kansas City Power & Light Company
Cash or Deferred Arrangement Employee Savings Plus Plan
Statement of Financial Condition, With Fund Information
December 31, 1993
ASSETS KCPL Loans to Total of
Investments: Stock Fund Participants All Funds
<S> <C> <C> <C>
Short term money market $ (191) $ 122,220 $ 122,029
Kansas City Power & Light Co. Stock
2,099,174.5222 shares at market
(cost $38,519,177) 48,281,014 - 48,281,014
Fidelity Managed Income Portfolio
(MIP) at market (cost $6,147,056) - - 6,147,056
Fidelity Puritan Fund
507,811.4505 shares at market
(cost $7,197,937) - - 7,998,031
Fidelity Magellan Fund
269,680.8401 shares at market
(cost $16,351,289) - - 19,106,887
Fidelity Asset Manager Fund
12,700.5360 shares at market
(cost $194,225) - - 195,588
Fidelity OTC Portfolio
3,156.5401 shares at market
(cost $78,849) - - 76,199
Fidelity Overseas Fund
3,835.4313 shares at market
(cost $102,625) - - 105,206
Loans receivable from participants - 3,938,755 3,938,755
Receivables:
Money market interest 202 - 260
Commission reimbursement 191 - 191
TOTAL ASSETS $48,281,216 $4,060,975 $85,971,216
LIABILITIES AND PLAN EQUITY
Liabilities:
Benefits payable to participants $ 217,724 $ - $ 412,752
Plan Equity 48,063,492 4,060,975 85,558,464
TOTAL LIABILITIES AND PLAN EQUITY $48,281,216 $4,060,975 $85,971,216
The accompanying Notes to Financial Statements are an integral part of these statements.
</TABLE>
<TABLE>
Kansas City Power & Light Company
Cash or Deferred Arrangement Employee Savings Plus Plan
Statement of Financial Condition, With Fund Information
December 31, 1992
KCPL Fidelity Investment Funds Loans to Total of
ASSETS Stock Fund MIP Puritan Magellan Participants All Funds
Investments:
<S> <C> <C> <C> <C> <C> <C>
Short term money market $ 37,733 $ - $ 12,901 $ 23,297 $ 211,447 $ 285,378
Kansas City Power & Light Co. Stock
1,882,042.191 shares at market
(cost $31,644,730) 42,816,460 - - - - 42,816,460
Fidelity Managed Income Portfolio
(MIP) at market (cost $5,744,301) - 5,744,301 - - - 5,744,301
Fidelity Puritan Fund
398,881.683 shares at market
(cost $5,353,484) - - 5,879,516 - - 5,879,516
Fidelity Magellan Fund
224,110.724 shares at market
(cost $12,886,542) - - - 14,121,217 - 14,121,217
Loans receivable from participants - - - - 2,910,345 2,910,345
Receivables:
Money market interest 118 86 15 39 - 258
Commission reimbursement 904 - - - - 904
TOTAL ASSETS $42,855,215 $5,744,387 $5,892,432 $14,144,553 $3,121,792 $71,758,379
LIABILITIES AND PLAN EQUITY
Liabilities:
Benefits payable to participants $ 620,055 $ 165,487 $ 105,415 $ 52,737 $ - $ 943,694
Unapplied forfeiture credits 337 - - - - 337
Plan Equity 42,234,823 5,578,900 5,787,017 14,091,816 3,121,792 70,814,348
TOTAL LIABILITIES AND PLAN EQUITY $42,855,215 $5,744,387 $5,892,432 $14,144,553 $3,121,792 $71,758,379
The accompanying Notes to Financial Statements are an integral part of these statements.
</TABLE>
<TABLE>
Kansas City Power & Light Company
Cash or Deferred Arrangement Employee Savings Plus Plan
Statement of Income and Changes in Plan Equity, With Fund Information
for the Year Ended December 31, 1993
Fidelity Investment Funds
Asset OTC
MIP Puritan Magellan Manager Portfolio Overseas
ADDITIONS
Investment income:
Net appreciation (depreciation)
<S> <C> <C> <C> <C> <C> <C>
in the fair value of investments $ - $ 386,089 $ 1,878,094 $ 1,364 $(2,651) $ 2,581
Dividends - 944,052 1,774,945 7,419 4,044 1,493
Interest 336,554 - - - - -
Money market interest 52 164 383 18 3 10
Loan interest - - - - -
Other (2) (341) 5 - - -
Net investment income 336,604 1,329,964 3,653,427 8,801 1,396 4,084
Contributions:
Employee 866,816 1,018,861 2,328,867 6,928 9,923 10,455
Employer - - - - - -
Rollover 865 865 2,594 - - -
Reimbursed commissions - - - - - -
Forfeiture credits - - - - - -
Total contributions 867,681 1,019,726 2,331,461 6,928 9,923 10,455
TOTAL ADDITIONS 1,204,285 2,349,690 5,984,888 15,729 11,319 14,539
DEDUCTIONS
Distributions to participants (260,088) (210,651) (387,729) - - -
Forfeited benefits - - - - - -
TOTAL DEDUCTIONS (260,088) (210,651) (387,729) - - -
TRANSFERS
Due to participant elections (380,219) 103,021 (435,454) 179,624 63,442 88,653
Due to participant loans (72,295) (85,371) (210,809) 236 1,438 2,016
TOTAL TRANSFERS (452,514) 17,650 (646,263) 179,860 64,880 90,669
NET CHANGE IN PLAN EQUITY 491,683 2,156,689 4,950,896 195,589 76,199 105,208
PLAN EQUITY, beginning of year 5,578,900 5,787,017 14,091,816 - - -
PLAN EQUITY, end of year $6,070,583 $7,943,706 $19,042,712 $195,589 $76,199 $105,208
The accompanying Notes to Financial Statements are an integral part of these statements.
</TABLE>
<TABLE>
Kansas City Power & Light Company
Cash or Deferred Arrangement Employee Savings Plus Plan
Statement of Income and Changes in Plan Equity, With Fund Information
for the Year Ended December 31, 1993
KCPL Loans to Total of
Stock Fund Participants All Funds
ADDITIONS
Investment income:
Net appreciation (depreciation)
<S> <C> <C> <C>
in the fair value of investments $ (604,609) $ - $ 1,660,868
Dividends 2,876,576 - 5,608,529
Interest - - 336,554
Money market interest 983 - 1,613
Loan interest - 311,589 311,589
Other 252 - (86)
Net investment income 2,273,202 311,589 7,919,067
Contributions:
Employee 2,783,301 - 7,025,151
Employer 2,704,174 - 2,704,174
Rollover 9,122 - 13,446
Reimbursed commissions 40,266 - 40,266
Forfeiture credits 8,078 - 8,078
Total contributions 5,544,941 - 9,791,115
TOTAL ADDITIONS 7,818,143 311,589 17,710,182
DEDUCTIONS
Distributions to participants (2,015,781) (84,076) (2,958,325)
Forfeited benefits (7,741) - (7,741)
TOTAL DEDUCTIONS (2,023,522) (84,076) (2,966,066)
TRANSFERS
Due to participant elections 380,933 - -
Due to participant loans (346,885) 711,670 -
TOTAL TRANSFERS 34,048 711,670 -
NET CHANGE IN PLAN EQUITY 5,828,669 939,183 14,744,116
PLAN EQUITY, beginning of year 42,234,823 3,121,792 70,814,348
PLAN EQUITY, end of year $48,063,492 $4,060,975 $85,558,464
The accompanying Notes to Financial Statements are an integral part of these statements.
</TABLE>
<TABLE>
Kansas City Power & Light Company
Cash or Deferred Arrangement Employee Savings Plus Plan
Statement of Income and Changes in Plan Equity, With Fund Information
for the Year Ended December 31, 1992
Fidelity Investment Funds
KCPL Loans to Total of
Stock Fund MIP Puritan Magellan Participants All Funds
ADDITIONS
Investment income:
Net appreciation (depreciation)
<S> <C> <C> <C> <C> <C> <C>
in fair value of investments $(1,933,699) $ 47 $ 209,679 $(1,054,800) $ - $(2,778,773)
Dividends 2,500,502 - 548,997 1,960,870 - 5,010,369
Interest - 371,725 - - - 371,725
Money market interest 6,563 366 272 752 1,670 9,623
Loan interest - - - - 230,178 230,178
Other 3,495 66 388 859 1 4,809
Net investment income 576,861 372,204 759,336 907,681 231,849 2,847,931
Contributions:
Employee 2,505,821 960,783 915,189 2,276,078 - 6,657,871
Employer 2,610,717 - - - - 2,610,717
Rollover 22,236 239 238 715 - 23,428
Reimbursed commissions 35,709 - - - - 35,709
Forfeiture credits 2,374 - - - - 2,374
Total contributions 5,176,857 961,022 915,427 2,276,793 - 9,330,099
TOTAL ADDITIONS 5,753,718 1,333,226 1,674,763 3,184,474 231,849 12,178,030
DEDUCTIONS
Distributions to participants (1,872,679) (491,565) (274,775) (230,213) (30,174) (2,899,406)
Forfeited benefits (2,711) - - - - (2,711)
TOTAL DEDUCTIONS (1,875,390) (491,565) (274,775) (230,213) (30,174) (2,902,117)
TRANSFERS
Due to participant elections 1,616,747 (580,070) (283,038) (753,639) - -
Due to participant loans (447,489) (161,682) (153,422) (382,865) 1,145,458 -
TOTAL TRANSFERS 1,169,258 (741,752) (436,460) (1,136,504) 1,145,458 -
NET CHANGE IN PLAN EQUITY 5,047,586 99,909 963,528 1,817,757 1,347,133 9,275,913
PLAN EQUITY, beginning of year 37,187,237 5,478,991 4,823,489 12,274,059 1,774,659 61,538,435
PLAN EQUITY, end of year $42,234,823 $5,578,900 $5,787,017 $14,091,816 $3,121,792 $70,814,348
The accompanying Notes to Financial Statements are an integral part of these statements.
</TABLE>
<TABLE>
Kansas City Power & Light Company
Cash or Deferred Arrangement Employee Savings Plus Plan
Statement of Income and Changes in Plan Equity, With Fund Information
for the Year Ended December 31, 1991
Fidelity Investment Funds
KCPL Loans to Total of
Stock Fund MIP Puritan Magellan Participants All Funds
ADDITIONS
Investment income:
Net appreciation (depreciation)
<S> <C> <C> <C> <C> <C> <C>
in fair value of investments $ 8,852,076 $ - $ 626,843 $ 2,170,627 $ - $11,649,546
Dividends 1,968,828 - 249,873 1,066,074 - 3,284,775
Interest - 371,299 - - - 371,299
Money market interest 11,087 720 458 1,320 3,501 17,086
Loan interest - - - - 149,386 149,386
Other 474 1 13 204 - 692
Net investment income 10,832,465 372,020 877,187 3,238,225 152,887 15,472,784
Contributions:
Employee 1,925,221 1,047,012 911,514 2,054,868 - 5,938,615
Employer 2,382,067 - - - - 2,382,067
Rollover 7,797 30,280 19,782 17,683 - 75,542
Reimbursed commissions 20,411 - - - - 20,411
Forfeiture credits 6,003 - - - - 6,003
Total contributions 4,341,499 1,077,292 931,296 2,072,551 - 8,422,638
TOTAL ADDITIONS 15,173,964 1,449,312 1,808,483 5,310,776 152,887 23,895,422
DEDUCTIONS
Distributions to participants (704,758) (134,464) (79,855) (144,869) (13,053) (1,076,999)
Forfeited benefits (4,800) - - - - (4,800)
TOTAL DEDUCTIONS (709,558) (134,464) (79,855) (144,869) (13,053) (1,081,799)
TRANSFERS
Due to participant elections 342,390 126,562 (308,716) (160,236) - -
Due to participant loans (99,202) (118,669) (73,061) (165,360) 456,292 -
TOTAL TRANSFERS 243,188 7,893 (381,777) (325,596) 456,292 -
NET CHANGE IN PLAN EQUITY 14,707,594 1,322,741 1,346,851 4,840,311 596,126 22,813,623
PLAN EQUITY, beginning of year 22,479,643 4,156,250 3,476,638 7,433,748 1,178,533 38,724,812
PLAN EQUITY, end of year $37,187,237 $5,478,991 $4,823,489 $12,274,059 $1,774,659 $61,538,435
The accompanying Notes to Financial Statements are an integral part of these statements.
</TABLE>
DESCRIPTION OF THE PLAN
The following description of the Kansas City Power & Light Company's Cash
or Deferred Arrangement, alternatively known as Employee Savings Plus Plan
(the Plan) provides only general information regarding the Plan. Participants
should refer to the Plan Agreement for more complete information.
The Plan was established January 1, 1988 and was designed to encourage
and assist employees of Kansas City Power & Light Company (the Company) to
adopt a regular savings and investment program for long term needs, especially
retirement. The Company is the Plan Administrator and United Missouri Bank,
n.a. (UMB) is the Trustee. The Administrative Committee is the fiduciary of
the Plan and has the responsibility of establishing the rules under which the
Plan is run.
1. Eligibility and Employee Contributions - Employees become eligible to
participate on the first day of each month coincident with or following
their completion of one year of service. Effective January 1, 1992,
participants may change the amount of their elective contribution
effective the first day of each month. A participant may cease elective
contributions at any time.
Participants can contribute any whole percentage of their base pay from
2% up to 10% to the Plan, except that contributions may not exceed the
maximum allowable under the law. The maximum individual contribution
allowed for 1993, 1992 and 1991 was $8,994, $8,728, and $8,475,
respectively. Other special limitations may reduce the participant
elective and Company matching maximum contribution amounts for highly
compensated employees.
2. Company Matching Contributions - The Company contributes an amount equal
to 50% of the employee's elective contribution, not to exceed three
percent of base pay plus any shift differential. Company contributions
may be made in cash, Company stock, or a combination thereof. Company
contributions will at all times be invested in the common stock of the
Company.
3. Rollovers - Participants may elect to transfer funds from another
qualified retirement plan to the Plan, with permission from the
Administrative Committee.
4. Vesting and Forfeitures
(a) Elective Contribution and Rollover Accounts - Participants are at
all times 100% vested in their elective contribution and rollover
accounts.
(b) Company Match Account - Participants who retire after age 55, die,
or become totally and permanently disabled while an employee of the
Company are considered 100% vested in the Company Match Account,
regardless of their length of service with the Company.
Vesting of the Company Match Account for participants who leave the
Company for a reason other than death, disability, or retirement is based
upon Years of Service for Vesting. A year of service for Plan purposes
is defined as any year in which an employee completes at least 1,000
hours of service with the Company. Generally, all years of service with
the Company are taken into account in computing Years of Service for
Vesting. Participants who accrue two years of service prior to
termination of employment are 20% vested. Participants are credited with
20% additional vesting each year thereafter, with full vesting after six
years of service.
The portion of Company Match Accounts that is not vested is forfeited by
terminating participants. Forfeitures are used to reduce future Company
matching contributions. The 1993, 1992 and 1991 forfeited benefits were
$7,741, $2,711, and $4,800, respectively. Forfeited benefits that have
not been used by the Company against future matching contributions are
represented as unapplied forfeiture credits. The unapplied forfeiture
credits for 1992 were $337. There were no unapplied forfeiture credits
for 1993. The Company used forfeiture credits of $8,078, $2,374 and
$6,003 for 1993, 1992 and 1991, respectively, to reduce the matching
contributions.
5. Investment of Accounts
(a) Investment of Elective Contribution and Rollover Accounts
On October 1, 1993 the Company added the Fidelity Asset Manager,
Fidelity OTC Portfolio and Fidelity Overseas Funds to the Plan's
investment options. Participants may direct (in 5% increments) the
investment of their elective contribution and rollover accounts in
one or more of the following seven investment funds:
(1) KCPL Stock Fund - a fund designed to invest solely in the
Company's common stock,
(2) Fidelity Managed Income Portfolio (MIP) Fund - a fund that
seeks to preserve capital and provide a competitive level of
income over time.
(3) Fidelity Puritan Fund - a growth and income fund that seeks
income consistent with preservation of capital by investing in
a broadly diversified portfolio of common stocks, preferred
stocks, and bonds, including lower-quality, high-yield debt
securities.
(4) Fidelity Magellan Fund - a growth fund that seeks long term
capital appreciation by investing in stocks of companies with
potentially above average growth potential and a corresponding
higher level of risk.
(5) Fidelity Asset Manager Fund - an asset allocation fund that
seeks high total return with reduced risk over the long term
by investing in domestic and foreign equities, bonds and short
term instruments.
(6) Fidelity OTC Portfolio Fund - a growth fund that seeks long
term capital appreciation by investing in securities traded on
the over-the-counter securities market.
(7) Fidelity Overseas Fund - an international growth fund that
seeks long term capital growth by investing in foreign
securities that includes common stock, securities convertible
into common stock and debt instruments.
The Company added the MIP Fund in January 1990. The MIP Fund was in
addition to the Fidelity GIC Group Trust. The MIP Fund is a commingled
pool of funds and, as such, the Portfolio's yield fluctuates. All 1993,
1992 and 1991 participant contributions to the fund were made to the MIP
Fund. The GIC Group Trust remained an asset of the fund and contributed
to the earnings until it closed in 1993. Participants who have monies
invested in the fund receive a blended rate of return based upon the
interest earned by both the GIC Group Trust and the MIP Fund. The
December 31, 1992, GIC Group Trust and the MIP Fund balances were
$369,280 and $5,375,021, respectively.
(b) Investment of Company Match Account - This account will at all
times be invested in the common stock of the Company.
As of December 31, 1993, 2,211 employees were participating in the Plan,
1289 of whom had invested their elective contributions in more than one
of the available options of the Plan. There were 99 employees
contributing only to the Fidelity MIP Fund, 28 employees contributing
only to the Fidelity Puritan Fund, 222 employees contributing only to the
Fidelity Magellan Fund, 2 employees contributing only to the Fidelity
Asset Manager Fund, 5 employees contributing only to the Fidelity OTC
Portfolio Fund, 6 employees contributing only to the Fidelity Overseas
Fund, and 560 employees contributing only to the KCPL Stock Fund.
Participants also have the opportunity to change how their past savings
in their elective and rollover accounts are invested. Effective
September 1, 1992, participants can make such changes on a daily basis.
Participants making such elections will have their fund shares sold, and
the proceeds transferred and fund shares purchased per their request.
6. Allocation of Investment Income - Prior to September 1992, monthly
investment income (including the appreciation/depreciation in the fair
value of investments) was allocated to each participant's individual
account at the end of each calendar month by the Trustee. With the
introduction of share accounting, the income is allocated based on shares
held by the participants in their individual accounts.
If contributions or participant transfers received by the Trustee cannot
be immediately invested in the investment funds, the monies are held in
an interest bearing UMB Money Market Fund. Some distributions may also
be invested in the money market fund prior to payment to the participant.
Any interest earned is allocated back to the investment accounts based
on the amounts originally transferred.
The money market interest receivable represents interest earned in the
money market accounts for December 1993 and 1992.
7. Termination Payments - In 1993 participants who leave the Company as a
result of termination, retirement, or permanent disability may receive
the entire amount of their account in one lump-sum payment, rollover
their account to another trustee, or they may elect to defer distribution
until age 62 or retirement, whichever is later. Participants leaving the
Company as a result of termination, retirement, or permanent disability
can no longer elect to defer distribution until 60 days after the
December 31 coinciding with or next following the date employment
terminates.
Prior to 1993 participants leaving the Company as a result of
termination, retirement or permanent disability could receive their
entire account in a lump-sum payment, defer the distribution until age
62 or retirement, whichever is later, or defer distribution until 60 days
after the December 31 coinciding with or next following the date
employment terminates.
Upon death, distributions will be made to beneficiaries in a lump sum or
in installment payments over a period of no more than three years.
Payment will commence no later than 60 days after the December 31
coinciding with or next following the date of the participant's death.
Benefits Payable to Participants represents an accrual for those
participants who had terminated service during the year and had not
received their distribution by December 31. This amount, however, does
not include an accrual for those terminated employees that elected to
defer their distribution until age 62, except for those that will reach
age 62 during 1994 and 1993.
8. Loans to Participants - Beginning January 1, 1989, the Plan allowed
participants to borrow against their vested account balance to obtain
either an installment or residential loan. Other than by obtaining a
loan, the Plan does not provide for in-service withdrawals from elective
accounts, rollover accounts, or Company Match accounts. Distributions
are made only upon retirement, disability, termination of employment, or
death.
An installment loan may be used for any purpose, whereas a residential
loan must be used for the purchase of the participant's primary
residence. The maximum loan terms for installment and residential loans
are 5 and 15 years, respectively. A participant may have no more than
one of each type of loan outstanding at the same time.
For all loans issued through October 1989, if the participant's account
balance was $20,000 or less, then a maximum of 80% of the vested account
balance, not to exceed $10,000, could be borrowed. If the account
balance was more than $20,000, then 50% of the vested account balance,
not to exceed $50,000 could be borrowed. The interest rate for these
loans was based on the Fidelity GIC Group Trust interest rate of 8.31%.
For loans issued after November 1, 1989, the maximum amount that a
participant can borrow is 50% of their vested account balance, not to
exceed $50,000. The interest rate for these loans is UMB's prime rate
plus 2%. The minimum amount a participant can borrow is $1,000.
Principal and interest on all loans is repaid to the participant's
individual accounts based on their current contribution allocation
election. All loans are repaid by payroll deduction except when paid in
full in advance or the unpaid principal is deducted from a total
distribution which results from a death, disability, retirement, or
termination.
Loans Receivable from Participants represents the total of the
outstanding loans issued from the investment funds. The 1993 Loans
Receivable from Participants total of $3,938,755 was comprised of
$455,936 of residential and $3,482,819 of installment loans. The 1992
Loans Receivable from Participants total of $2,910,345 was comprised of
$259,872 of residential and $2,650,473 of installment loans.
9. Commissions and Administrative Expenses - Total 1993, 1992 and 1991
commissions were $40,266, $35,709 and $20,411, respectively, of which the
Company owed the Plan $191 at December 31, 1993, and $904 at December 31,
1992. Commissions paid by the Plan for purchases and sales of Company
common stock are reimbursed by the Company.
Administrative expenses are also paid by the Company. During the year
ended December 31, 1993, a total of $52,806 in costs for the
administration of the Plan were billed to the Company by the Trustee.
The total administrative costs billed to the Company for 1992 and 1991
were $121,632 and $154,106, respectively.
10. Subsequent Event - On March 8, 1994, the Board of Directors of the
Company authorized the Company to offer a Voluntary Early Retirement
Program to 411 eligible employees. Employees participating in the
program will retire from the Company on June 30, 1994. Retiring
employees participating in the Plan can elect any of the termination
payment options. As of May 31, 1994, 312 employees who have a Plan
account elected to participate in the program. The account balances of
these employees total $17,849,883 at May 31, 1994.
11. Summary of Other Significant Accounting Policies
Basis of Accounting - The Plan's financial statements are maintained on
the accrual basis. Plan records are maintained on a calendar year basis.
Investments are valued at quoted market prices on the last business day
of the Plan year. In accordance with the policy of stating investments
at fair market value, the Plan presents in the Statement of Income and
Changes in Plan Equity, the net appreciation (depreciation) in the fair
value of its investments which consists of the realized gains and losses
and the unrealized appreciation (depreciation) on those investments.
Reclassification - Certain amounts in the 1991 financial statements have
been reclassified to conform to the 1993 and 1992 presentations.
KCPL Common Stock - On May 29, 1992 the Company's common stock split two-
for-one to shareholders of record on May 13, 1992.
Amendment and Termination - Although the Company intends to continue the
Plan indefinitely, it reserves the right to amend or terminate the Plan
or cease Company contributions to it. If the Plan is terminated,
participants will receive the amounts credited to their accounts and will
automatically be fully vested in the Company Match Account regardless of
the participant's years of service for vesting.
Tax Status - The Plan has been approved by the Internal Revenue Service
as a "qualified" plan under the Internal Revenue Code. The Plan is
exempt from Federal taxes on its income, and the participants in the Plan
are not subject to taxes on either the income or the Company's
contributions until such time as distributions are received.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Administration Committee of the Employee Savings Plus Plan has duly caused
this annual report to be signed on its behalf by the undersigned hereunto duly
authorized.
EMPLOYEE SAVINGS PLUS PLAN
(
(
(By: /s/ S. P. Cowley
( S. P. Cowley, Chairman
(
(
( /s/ B. J. Beaudoin
( B. J. Beaudoin, Member
(
(
( /s/ B. M. Tate
( B. M. Tate, Member
June 15, 1994
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in the registration statement of
Kansas City Power & Light Company on Form S-8 (File No. 33-62942) of our
report dated May 31, 1994, on our audit of the financial statements of the
Kansas City Power & Light Company Cash or Deferred Arrangement Employee
Savings Plus Plan as of December 31, 1993, and 1992, and for the years ended
December 31, 1993, 1992, and 1991, which report is included in this Annual
Report on Form 11-K.
/s/Coopers & Lybrand
COOPERS & LYBRAND
Kansas City, Missouri
June 15, 1994
