Message From the Executive Director Alan Conroy

I am pleased to share with you an update about KPERS’ recent funding results.

Our actuary conducts an annual valuation on December 31 each year to assess funding levels, compare Trust Fund assets to liabilities, and estimate future benefit costs. This process also sets employer contribution rates, and projects future funded ratios and contribution rates based on investment returns.

KPERS received the latest valuation report in July 2025 (as of December 31, 2024). Two of the most important measures of the valuation are the funded ratio and the unfunded actuarial liability (UAL).

The UAL is the difference between Trust Fund assets and the cost of future benefits. In 2024, the UAL increased slightly from $9.69 billion to about $10.05 billion. Higher-than-expected salaries and the ongoing effects of negative returns from CY 2022 are the main reasons for this increase.

Although there was a slight increase in the UAL, KPERS’ overall funded ratio (assets/liabilities) remained steady at 74.0%. For pension systems like KPERS, a funded ratio of 80% and rising is good, on the way to the goal of 100%.

The KPERS Trust Fund is now over $29 billion (as of June 30, 2025) and our most recent annual rate of return is 10.4%. This is about a $1 billion increase since the time of the 2024 valuation, when Trust Fund assets totaled $27.9 billion. For 2024, the System’s net investment return was 9.3%, exceeding the long-term target of 7%. This high investment return contributed to the steady funded ratio.

The Legislature’s efforts to address funding have put us on the right path. Overall funding has gradually improved 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. This marks the seventh consecutive valuation in which the State/School employer contributions have met the actuarially required amount. These payments are key to KPERS’ long-term funding position.

Please do not hesitate to let me know if you have any questions (aconroy@kspers.gov or 785-296-6880). Thank you for your public service.

Alan D. Conroy, Executive Director