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KPERS Funding

Get the latest on your Retirement System's funding status.

Trust Fund Assets - $23.4 Billion - Graphic
Investments 25 year Return - 6.9% - Target 7% - Graphic
Assets vs Liabilities - 72% Funded Ratio - Graphic
Unfunded Liability - $9.8 Billion - Graphic

Your Benefit is Secure.

It will be there when the time comes.

KPERS is a prefunded system made up of contributions from you, your employer and investment income. You put part of every paycheck into the Retirement System. And your employer contributes, too. Then we invest the money to pay you a monthly benefit when you retire.

Dollar Contribution Graphic, 47% KPERS Investments, 36% Employer Contributions, 17% Member Contributions Dollar Contribution Graphic, 47% KPERS Investments, 36% Employer Contributions, 17% Member Contributions

Contributions and Benefit Payments

Contributions and KPERS investments cover paid annual benefits.

In FY 2023, we had $1.6 billion in contributions. That's about enough to cover the cost of annual benefits, which was $2.1 billion in FY 2023. And then there's investment income, which was about $1.7 billion in FY 2023. Over time, investments have paid for almost half of members' benefits.

Money In: 1.6 billion total annual contributions FY 2023 + 1.7 Billion Annual Investment Income Money Out: 2.1 Billion total benefit payments paid FY 2023

How We're Doing

Trust Fund assets have more than doubled in last two decades.

The KPERS Trust Fund is your money. It's not going anywhere except to pay your benefits. It can never be withdrawn for any other purpose.

At about $26 billion*, Trust Fund assets have more than doubled in the last two decades. And our 25-year investment is 7.0%*, on track with our 7% target. Remember, investment returns each year are important. But healthy returns over time are essential for proper funding.

*as of the latest valuation on July 31, 2023

Dollar Contribution Graphic, 47% KPERS Investments, 36% Employer Contributions, 17% Member Contributions Dollar Contribution Graphic, 47% KPERS Investments, 36% Employer Contributions, 17% Member Contributions

Making Progress for Sound Funding

KPERS funding is on the right track, but it will take time.

KPERS is 73.4% funded – up more than 17% since 2012. While we're making progress toward full funding, it's important to remember that 80% and rising is good for pensions like ours, with the goal of 100%. So we're on the right track! But there's no getting around it. We have a long-term funding shortfall and we can't invest our way out.

The difference between our Trust Fund assets and projected future benefits is the unfunded actuarial liability. Currently at $9.6 billion, it's mainly from two recessions and KPERS receiving less than the required employer contributions for more than 25 years. It will take time and the right amount of employer contributions to improve the System's funded status. As your fiduciary, we're working with employers and State leaders to ensure sound funding for your promised benefits.

KPERS Funded Ratio From 2013-2022