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

funded ratio graph, illustrating the gains KPERS Funded Ratio has made in the last few years

funded ratio graph, illustrating the gains KPERS Funded Ratio has made in the last few years