Actuarial Valuation
Latest Valuation Shows Increase in Funding Status, Slight Decrease in Unfunded Liability
KPERS' most recent actuarial valuation report (as of December 31, 2025) found System’s funding position to be holding steady.
- Funded ratio: 75%, inreased about 1% from last year
- Unfunded actuarial liability: $10.00B, a slight decrease from $10.05B last year
KPERS’ unfunded actuarial liability decreased by about $46 million this year. Overall, strong investment performance along with full actuarial contributions ultimately lowered the unfunded liability in 2025.
Like 2024, CY 2025 showed strong performance in KPERS’ investments. The System’s investment return for 2025 was 13.4%, exceeding the long-term target of 7%. This high investment return contributed to the steady funded ratio. At the time of the valuation on December 31, 2025, KPERS’ 20-year investment return was 7.5%, exceeding the 7.0% investment target.
The State/School group funded ratio also increased in 2025 to 76%, compared to 75% in the 2024 valuation. This is the highest funded ratio since KPERS began calculating the State/School group funding separately, up from a low of 49% in 2012. With this valuation, the KPERS State/School group should reach the 80% funded ratio mark in 2028, if all assumptions are met.
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 valuation is the eighth valuation in a row that all employer groups have contributed the actuarially required amount.
Every year, KPERS actuary completes a valuation of the Retirement System. The valuation looks at KPERS' financial health. It also sets future employer contribution rates and updates our long-term funding projections.
