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, 1994
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, 1994. . . . . . . . . . . . . . . . . . . . . . 2
December 31, 1993. . . . . . . . . . . . . . . . . . . . . . 4
Statements of Income and Changes in Plan Equity With Fund
Information, for the Year Ended
December 31, 1994. . . . . . . . . . . . . . . . . . . . . . 6
December 31, 1993. . . . . . . . . . . . . . . . . . . . . . 8
December 31, 1992. . . . . . . . . . . . . . . . . . . . . .10
Notes to Financial Statements . . . . . . . . . . . . . . . . .11
Signatures. . . . . . . . . . . . . . . . . . . . . . . . . . .17
Consent of Independent Accountants. . . . . . . . . . . . . . .18
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, 1994 and 1993, and the related statements of income
and changes in Plan equity for each of the three years in the period ended
December 31, 1994. 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,
1994 and 1993, and the income and changes in Plan equity for each of the three
years in the period ended December 31, 1994, 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 L.L.P.
Kansas City, Missouri
May 26, 1995
Kansas City Power & Light Company
Cash or Deferred Arrangement Employee Savings Plus Plan
Statement of Financial Condition, With Fund Information
December 31, 1994
Fidelity Investment Funds
ASSETS Asset OTC
Investments: MIP Puritan Magellan Manager Portfolio Overseas
Short term money market $ - $ - $ - $ - $ - $ -
Kansas City Power & Light Co. Stock
2,180,815.5212 shares at market
(cost $41,924,904) - - - - - -
Fidelity Managed Income Portfolio
(MIP) at market (cost $5,805,034) 5,805,034 - - - - -
Fidelity Puritan Fund
546,184.6638 shares at market
(cost $7,937,852) - 8,088,995 - - - -
Fidelity Magellan Fund
281,382.1699 shares at market
(cost $17,853,039) - - 18,796,329 - - -
Fidelity Asset Manager Fund
26,474.6058 shares at market
(cost $392,460) - - - 366,144 - -
Fidelity OTC Portfolio
10,664.9891 shares at market
(cost $254,399) - - - - 248,174 -
Fidelity Overseas Fund
22,738.8647 shares at market
(cost $641,639) - - - - - 620,771
Loans receivable from participants - - - - - -
Receivables:
Money market interest - 40 104 8 4 10
Commission reimbursement - - - - - -
TOTAL ASSETS $5,805,034 $8,089,035 $18,796,433 $366,152 $248,178 $620,781
LIABILITIES AND PLAN EQUITY
Liabilities:
Benefits payable to participants $ 308,788 $ 193,202 $ 307,364 $ - $ - $ -
Plan Equity 5,496,246 7,895,833 18,489,069 366,152 248,178 620,781
TOTAL LIABILITIES AND PLAN EQUITY $5,805,034 $8,089,035 $18,796,433 $366,152 $248,178 $620,781
The accompanying Notes to Financial Statements are an integral part of these statements.
Kansas City Power & Light Company
Cash or Deferred Arrangement Employee Savings Plus Plan
Statement of Financial Condition, With Fund Information
December 31, 1994
ASSETS KCPL Loans to Total of
Investments: Stock Fund Participants All Funds
Short term money market $ (345) $ 245,000 $ 244,655
Kansas City Power & Light Co. Stock
2,180,815.5212 shares at market
(cost $41,924,904) 50,976,563 - 50,976,563
Fidelity Managed Income Portfolio
(MIP) at market (cost $5,805,034) - - 5,805,034
Fidelity Puritan Fund
546,184.6638 shares at market
(cost $7,937,852) - - 8,088,995
Fidelity Magellan Fund
281,382.1699 shares at market
(cost $17,853,039) - - 18,796,329
Fidelity Asset Manager Fund
26,474.6058 shares at market
(cost $392,460) - - 366,144
Fidelity OTC Portfolio
10,664.9891 shares at market
(cost $254,399) - - 248,174
Fidelity Overseas Fund
22,738.8647 shares at market
(cost $641,639) - - 620,771
Loans receivable from participants - 4,163,820 4,163,820
Receivables:
Money market interest 282 - 448
Commission reimbursement 345 - 345
TOTAL ASSETS $50,976,845 $4,408,820 $89,311,278
LIABILITIES AND PLAN EQUITY
Liabilities:
Benefits payable to participants $ 1,826,849 $ - $ 2,636,203
Plan Equity 49,149,996 4,408,820 86,675,075
TOTAL LIABILITIES AND PLAN EQUITY $50,976,845 $4,408,820 $89,311,278
The accompanying Notes to Financial Statements are an integral part of these statements.
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
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.
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
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.
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, 1994
Fidelity Investment Funds
Asset OTC
MIP Puritan Magellan Manager Portfolio Overseas
ADDITIONS
Investment income:
Net depreciation
in the fair value of investments $ - $ (516,284) $(1,102,236) $(32,159) $ (5,169) $(22,666)
Dividends - 646,039 758,758 12,035 1,963 9,773
Interest 338,676 - - - - -
Money market interest 221 366 1,199 47 29 67
Loan interest - - - - - -
Other - 1,488 (1,504) (1) - 2
Net investment income (loss) 338,897 131,609 (343,783) (20,078) (3,177) (12,824)
Contributions:
Employee 738,913 1,011,049 2,310,016 93,693 86,493 177,998
Employer - - - - - -
Rollover 6,407 981 981 - - 14,951
Reimbursed commissions - - - - - -
Forfeiture credits - - - - - -
Total contributions 745,320 1,012,030 2,310,997 93,693 86,493 192,949
TOTAL ADDITIONS 1,084,217 1,143,639 1,967,214 73,615 83,316 180,125
DEDUCTIONS
Distributions to participants (1,348,692) (1,175,832) (1,926,499) (57,286) (20,310) (20,136)
Forfeited benefits - - - - - -
TOTAL DEDUCTIONS (1,348,692) (1,175,832) (1,926,499) (57,286) (20,310) (20,136)
TRANSFERS
Due to participant elections (227,974) (6,188) (483,042) 142,660 100,084 322,192
Due to participant loans (81,888) (9,492) (111,316) 11,574 8,889 33,392
TOTAL TRANSFERS (309,862) (15,680) (594,358) 154,234 108,973 355,584
NET CHANGE IN PLAN EQUITY (574,337) (47,873) (553,643) 170,563 171,979 515,573
PLAN EQUITY, beginning of year 6,070,583 7,943,706 19,042,712 195,589 76,199 105,208
PLAN EQUITY, end of year $5,496,246 $7,895,833 $18,489,069 $366,152 $248,178 $620,781
The accompanying Notes to Financial Statements are an integral part of these statements.
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, 1994
KCPL Loans to Total of
Stock Fund Participants All Funds
ADDITIONS
Investment income:
Net depreciation
in the fair value of investments $ (237,684) $ - $(1,916,198)
Dividends 3,201,956 - 4,630,524
Interest - - 338,676
Money market interest 1,997 - 3,926
Loan interest - 354,178 354,178
Other (4) - (19)
Net investment income (loss) 2,966,265 354,178 3,411,087
Contributions:
Employee 2,592,423 - 7,010,585
Employer 2,658,993 - 2,658,993
Rollover 3,196 - 26,516
Reimbursed commissions 45,999 - 45,999
Forfeiture credits 4,637 - 4,637
Total contributions 5,305,248 - 9,746,730
TOTAL ADDITIONS 8,271,513 354,178 13,157,817
DEDUCTIONS
Distributions to participants (7,319,343) (168,471) (12,036,569)
Forfeited benefits (4,637) - (4,637)
TOTAL DEDUCTIONS (7,323,980) (168,471) (12,041,206)
TRANSFERS
Due to participant elections 152,268 - -
Due to participant loans (13,297) 162,138 -
TOTAL TRANSFERS 138,971 162,138 -
NET CHANGE IN PLAN EQUITY 1,086,504 347,845 1,116,611
PLAN EQUITY, beginning of year 48,063,492 4,060,975 85,558,464
PLAN EQUITY, end of year $49,149,996 $4,408,820 $86,675,075
The accompanying Notes to Financial Statements are an integral part of these statements.
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)
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.
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)
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.
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)
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.
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) and
KLT Inc. (a wholly-owned subsidiary of the Company) to adopt a regular savings
and investment program for long term needs, especially retirement. The
Company is the Plan Administrator and UMB 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 1994, 1993 and 1992 was $9,240, $8,994, and $8,728,
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 as defined in the Plan. 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 1994, 1993 and 1992 forfeited benefits were
$4,637, $7,741, and $2,711, respectively. Forfeited benefits that have
not been used by the Company against future matching contributions are
represented as unapplied forfeiture credits. There were no unapplied
forfeiture credits for 1994 and 1993. The Company used forfeiture
credits of $4,637, $8,078, and $2,374 for 1994, 1993 and 1992,
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.
(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, 1994 1,906 employees were participating in the Plan,
1,122 of whom had invested their elective contributions in more than one
of the available options of the Plan. There were 80 employees
contributing only to the Fidelity MIP Fund, 24 employees contributing
only to the Fidelity Puritan Fund, 189 employees contributing only to the
Fidelity Magellan Fund, 6 employees contributing only to the Fidelity
Asset Manager Fund, 3 employees contributing only to the Fidelity OTC
Portfolio Fund, 33 employees contributing only to the Fidelity Overseas
Fund, and 449 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.
The non-participant directed portion of the KCPL Stock Fund consisted of
914,307.7292 shares for $21,371,943 and 821,049.7892 shares for
$18,884,145 at December 31, 1994 and 1993, respectively.
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. Subsequent to
September 1992, share accounting allows the income to be 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 1994 and 1993.
7. Termination Payments - Beginning 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 1995 and 1994. The deferred to age 62 totals for
participants not required to receive distributions in the next calendar
year are $9,864,430 and $1,431,059 for December 31, 1994 and 1993,
respectively.
8. Loans to Participants - The Plan allows 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 1994 Loans
Receivable from Participants total of $4,163,820 was comprised of
$561,788 of residential and $3,602,032 of installment loans. 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.
9. Commissions and Administrative Expenses - Total 1994, 1993 and 1992
commissions were $45,999, $40,266 and $35,709, respectively, of which the
Company owed the Plan $345 at December 31, 1994, and $191 at December 31,
1993. 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, 1994, a total of $55,516 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 1993 and 1992
were $52,806 and $121,632, respectively.
10. Voluntary Early Retirement Program - On March 8, 1994, the Board of
Directors of the Company authorized the Company to offer a Voluntary
Early Retirement Program. Of the 411 eligible employees, 312 employees
with a Plan account elected to participate in the program and retired
from the Company on June 30, 1994. Retiring employees who participated
in the Plan could elect any of the termination payment options described
in Note 7.
11. Related Party and Party-In-Interest Transactions - The Trustee is
authorized under contract provisions and ERISA regulations, to invest in
funds under its control and in securities of the Company.
In 1994 there were 484,176 shares purchased and 182,818 shares sold in
the KCPL Stock Fund under the Trustee's control totaling $10,480,132 and
$3,900,346, respectively. In 1993 there were 429,681 shares purchased
and 125,736 shares sold totaling $10,385,210 and $3,014,642,
respectively.
Temporary cash balances are invested on a daily basis in short-term
investment funds under the Trustee's control. Although those temporary
cash balances are not material to the Plan's financial statements, there
were 532 purchases and 521 sales in the UMB Money Market Fund totaling
$19,618,315 and $19,549,256, respectively in 1994. In 1993 there were
418 purchases and 402 sales totaling $13,228,780 and $13,253,747,
respectively.
12. 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.
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. The Plan
has been amended since receiving the last tax determination letter from
the Internal Revenue Service. However, the Administrative Committee
believes the Plan is currently designed and operated in compliance with
the applicable requirements of the Code. The Administrative Committee
believes the Plan is qualified and tax-exempt, as described above, as of
December 31, 1994 and 1993.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Administrative 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/ B. M. Tate, Member
(
(
( /s/ S. W. Cattron, Member
(
(
( /s/ J. S. Latz, Member
June 15, 1995
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. 33-58917) of our
report dated May 26, 1995, 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, 1994, and 1993, and for the years ended
December 31, 1994, 1993, and 1992, which report is included in this Annual
Report on Form 11-K.
/s/ Coopers & Lybrand L.L.P.
Kansas City, Missouri
June 15, 1995