Trustees of the Kansas Public Employee Retirement System deferred Friday until at least next month a decision about lowering the assumed rate of return on pension investments below the current 7.75% target and dramatically inflating the system’s unfunded liability. Action by the KPERS board in response to soured market conditions would have practical implications in terms of dealing with the system’s long-term liability as well as political ramifications from state legislators opposed to the adjustment. Kansas Senate President Ty Masterson and Senate budget chairman Rick Billinger, both Republicans, advised trustees they weren’t “convinced about the wisdom” of plans to trim the baseline investment assumption. They argued a reduction of 0.25% would deepen the system’s unfunded liability by $600 million.
Source: The Lawrence Times
