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Archive for Wednesday, May 18, 2011

KPERS trustees put off decision on lowering long-term investment earnings projections

May 18, 2011

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— Trustees of the Kansas Public Employees Retirement System are postponing an important decision until at least July.

The board had considered having a discussion at its meeting Friday about lowering the pension system's projections for long-term investment earnings.

KPERS currently assumes it will earn an average of 8 percent annually on its investments. Critics suggest the figure is too high, and the board reviews it every three years.

KPERS executive director Glenn Deck said the board wants to first review a plan approved by legislators this year to address the system's long-term funding shortfall.

The projected gap is $7.7 billion between projected revenues and benefits promised to public employees through 2033. Lowering the assumption for investment earnings would increase the gap.

Comments

jafs 3 years, 7 months ago

They have to lower those projections - they're simply overly optimistic for pension plans, which should be invested in safe investments.

I'd suggest about 5% might be realistic.

Jan Rolls 3 years, 7 months ago

Have to delay so they can get their lies straight.

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