Actuarial Valuation

New Valuation Shows Increase in Funding Status

KPERS' new actuarial valuation report (as of December 31, 2022) found an increase in the System’s funding position.

• Funded ratio: 73.4%, up from 71.6% last year
• Unfunded actuarial liability: $9.6B, down from $9.8B last year

Despite negative investment returns in CY 2022, KPERS’ overall funding improved. The net investment return for 2022 was -9.8%, below the long-term target of 7%. However, KPERS 25-year investment return was 7.1% at the time of the valuation on December 31, 2022, exceeding the investment target.

In 2022, KPERS received an additional $1.125B in contributions from the State to the School group. The additional funding resulted in a $260 million decrease in the State/School unfunded liability and a 2.5% improvement in the funded ratio. With this valuation, the KPERS State/School group should reach the 80% funded ratio mark in 2034.

Also of note, the School group funded ratio increased by 5% with this valuation, to 73.6%. This is the highest funded ratio since KPERS began calculating the School group funding separately, up from a low of 49% in 2012.

Overall funding has been gradually improving over the last decade from a System low of 56% in 2012. Continued funding improvements hinge on meeting our investment target over time, in addition to full and consistent employer contributions year after year.

Ever year, KPERS actuary completes a valuation of the Retirement System. The valuation looks at KPERS' financial health. It also helps plan future employer contribution rate and confirm our long-term funding projections.

KPERS 2022 Actuarial Valuation Report | 2022 Actuarial Valuation Report Presentation Slides