Despite legislative efforts to reform the Kansas Public Employees Retirement System (KPERS) in 2011, the plan’s funding status remains seriously low. A new paper from Kansas Policy Institute scholar Barry Poulson, Ph.D., makes clear that the reforms undertaken thus far were not enough to address the structural deficiencies in KPERS. In fact, new Government Accounting Standards Board (GASB) standards will make the current deficiencies much worse.
While a funding ratio (value of assets in the plan divided by a measure of the pension obligation) of 80 percent is generally considered a barometer of a pension system’s health, KPERS has a 59 percent funded ratio as of the most recent KPERS year-end report, and that will decrease to 46.1 percent under the new GASB standards.
(Read more: Gardner News)