The Fiduciary Standard
KPERS serves members as a fiduciary, holding assets in trust for them, growing those assets through investments and delivering promised benefits when the time comes.
The fiduciary standard is our driving force, particularly in investments. It is the highest standard of care and accountability. KPERS investments are made and managed for the sole purpose of providing benefits to our members and their beneficiaries.
Investment returns make up the largest source of income for paying benefits. They are a vital part of successful funding. Over the years, investments have paid for about 50% of benefits.
KPERS Funding Sources
Every three years the KPERS Board of Trustees undertakes an asset/liability study to set our asset allocation.
With guidance from the System's investment consultants, the Board reviews liability projections (future benefits) and investment return assumptions across asset classes. Then considers the System's risk tolerance. Our investment goal is for the portfolio to provide the highest returns for the least amount of risk.
The study helps the Board find the target asset allocation that most effectively and efficiently supports future benefit payments when combined with future member and employer contributions.