Message from the Executive Director Regarding Member Concerns about Investments and Continued Operations During Pandemic – June 11, 2020
Some of our members have expressed concern that recent investment market downturns will impact their KCPSRS benefits. It is important to remember that the KCPSRS pension plan is a defined benefit (DB) plan, meaning that the amount of your annual pension benefit is defined by a formula and will be paid over your lifetime. Your KCPSRS pension benefit will not fluctuate with investment market ups and downs.
Like most investors, KCPSRS’ total fund investment portfolio has been negatively impacted during the first quarter of 2020. However, unlike individual investors, the assets of KCPSRS are invested over a very long-term time horizon. The KCPSRS portfolio is well-diversified and designed to weather the volatility of financial markets. The assumed long-term investment rate of return used for the annual actuarial valuation of KCPSRS is 7.50%. As of April 30, 2020, our long term (since July 1989-first available data), investment return average was 7.65%, which includes other downturns in the markets such as in 2000-2002, and 2008. Total fund returns for May are still being compiled, but investment markets rose slightly and continue to offset some of the downturns from the 1st quarter of 2020.
Please know that the KCPRS Board of Trustees and staff are committed to managing KCPSRS’ assets in a prudent manner to ensure the security of your benefits and the sustainability of the System.
Operations During Pandemic
Our staff didn’t miss a beat in getting benefits paid in March, April, and May and they will continue to do so this month, next month, and so on.
The KCPSRS office remains closed to visitors to protect the health of members and staff. While still largely working remotely from home, KCPSRS staff rotate days in the office.
We are continuing to accept retirement applications through mail or email.
KCPSRS staff are available to you by phone and email. Please contact us with any questions you may have about your KCPSRS benefits.
If your call goes to a voice mail, please make sure you leave your phone number and be assured we will call you back. We are all in this together – and we will get through this, together! Thank you for your patience as we continue to serve you. Please be safe and take care.