KPERS’ unfunded liability falls below $9 billion, revenue tops benchmark

The unfunded liability of the Kansas Public Employees Retirement System declined by more than $150 million in the previous year and return on the pension fund’s investments exceeded the 7.75 percent target, officials said Monday. KPERS executive director Alan Conroy told House and Senate members of the Joint Committee on Pensions, Investments and Benefits that challenges remained in the system serving state employees, judges, teachers, firefighters and law enforcement officers. But the unfunded actuarial liability dropped to $8.907 billion at the end of 2017 from $9.061 billion at the close of 2016, he said. Members of the joint committee, including Rep. Steven Johnson, an Assaria Republican, and Senate Minority Leader Anthony Hensley, a Topeka Democrat, said the annual report offered a promising snapshot of KPERS.

“It’s really great to see the consistency in both funding in the returns and the progress in extinguishing the unfunded liability,” Johnson said.

Hensley said that in 2021 contributions by state government to the combined state and school retirement portions of the system would be equal to the actuarial required rate for the first time in 24 years.