KPERS Is Not Bankrupt

Recent news articles have quoted a report issued by the Center for Applied Economics at the University of Kansas calling KPERS bankrupt.

KPERS is not bankrupt. The System has more than $10 billion in assets, enough to continue paying benefits for decades. It is important to remember that 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.

Financial markets have seen unprecedented declines over the last year. The resulting investment losses have had a substantial, negative impact on KPERS’ long-term funding outlook. While not an immediate crisis, the depth of the impact is serious. The longer we wait to fix the problem, the worse it will get.

Over the last year, we have presented information to Legislative committees about the current funding outlook and the need for a new comprehensive, cooperative solution. The KPERS Board and staff are currently working on a top-to-bottom analysis of funding, projections and options.

Benefits must equal contributions (employer and employee) plus investments minus expenses. We're looking at all these areas and plan to develop funding and benefit options for consideration by the Governor and Legislative committees this fall.

Even through this time of analysis and possible changes, members can rest assured that the benefits they’ve earned are dependable and guaranteed by current law.

September 23, 2009