Annual Statements on the Way

Each spring the Retirement System sends you a snapshot of your account for the previous year. Your annual statement is a great tool for you to use in your financial planning. You should receive your annual statement through your employer sometime in March or April.

The Nuts and Bolts of Your Statement

• Beneficiaries for retirement and life insurance benefits
• Personal information including your membership date, vested status and final average salary
• Account balance
• Years of service
• Benefit estimates if you are a vested member

To learn more, visit www.kpers.org/annualstatement.htm for a helpful 6-minute video that explains the various sections of your annual statement. While you’re there, you can estimate your retirement benefits using various scenarios with our online calculator. Your annual statement has all the information you need to calculate your own estimate.
With your benefit estimate in hand, you’ve taken an important step in retirement planning. You can use the American Savings Education Council’s “Ballpark Estimate” worksheet at www.choosetosave.org/ballpark to get a rough estimate of how much you’ll need to save for retirement. The worksheet helps you factor in Social Security, pensions, personal savings and the effects of inflation.

Benefits Remain Secure in the Face of Stormy Financial Markets

As upheaval in the financial market continues, it’s only natural for you to be concerned about your benefits. Rest assured, your benefits are dependable and guaranteed by law, even during a bumpy economy. KPERS’ portfolio is built to withstand the ups and downs of the market and to stand the test of time.

We’re Diversified. That means we don’t put all our eggs in one basket. KPERS invests in many broad investment sectors, and we intentionally limit the amount we put in any one company. This strategy can help offset some of the potential losses in the portfolio during times of negative volatility like we are experiencing now.

We’re Long-Term. KPERS has a steady, long-term investment strategy. Our time horizon is longer than most investors. We have time to wait for the markets to recover. As we weather the storm, we also look for opportunities to invest while prices are low. In the meantime, the System’s total assets are about $10 billion, enough to pay benefits for years.
We’re Professional. KPERS has a professional investment staff and uses 19 different investment managers with proven track records. This team carefully monitors the portfolio every step of the way.

Unlike most financial service providers, we are not in business for a profit. The fiduciary standard is our driving force. That means we put the interest of our members first.

We’ve Weathered Other Storms. You’ll probably remember the market weakness after 9/11 in 2001. It was somewhat similar to what is going on now. KPERS’ portfolio had significant losses for two years. But our investment strategy worked. We also weathered the Enron and WorldCom debacles, investment bank failures in the 1990s, the market crash of 1987, and back-to-back years of staggering inflation in the 1970s.

But This Storm Isn’t Like the Others. This has been the worst year for the stock market since 1931. We can’t predict how long this market decline will go on. But historically, markets have recovered, even after the Great Depression. It’s important to remember that we have time. Not all benefits are due at once. Most members are still working and contributing and will not retire for years. Those in retirement are paid over a lifetime. After our country works through the financial issues facing us, we expect the stock market to eventually respond. We’ll continue to carefully manage members’ assets and work with the Kansas Legislature and Governor to shore up long-term funding. We are in the position to wait for the storm to pass. Until then, you can count on KPERS for dependable benefits and for us to be a trusted partner during this time of uncertainty.