Message From the Executive Director
Your Benefits Will Be There
Members sometimes express concern whether their KPERS benefits will be there when they retire.
When they call in, or ask questions during a KPERS presentation, here is what we tell them: “Please don’t worry. There is certainly reason for all of us to increase our attention on KPERS’ funding, but not enough to make you doubt if your benefits will be there for you when it’s time.”
KPERS is a prefunded system. That means contributions and investment returns come in during your career to pay for your benefits when you retire. Right now about $1 billion in contributions come in each year. This alone would almost cover the annual cost of current benefits. And then there’s investment income. Over time, it accounts for more than half of income to the Trust Fund.
KPERS manages over $20 billion in assets. Your assets. The System has continued to earn a long-term investment average of over 8%, a bit more than our 7% target. The Trust Fund is your money. And no one can take it out except to pay your benefits.
The Trust Fund has more than doubled over the last two decades. However, KPERS does have a long-term funding shortfall. And it’s been more than two decades in the making. We cannot invest our way out. It will take both time and the right level of employer contributions to fix it.
You are likely to continue to hear about KPERS in the media in the months and years to come. But we are your fiduciary. But know we are here to watch out for your best financial interest and keep funding needs in front of the Legislature. Rest assured, your benefit will be there.
Alan D. Conroy, Executive Director
KPERS Trust Fund Growth Over Time