Iowa Public Employees' Retirement System, Des Moines, faces a $1.3 billion shortfall and possible contribution rate increase, according to a report on its website. The 9.45% current statutory rate "will not be sufficient to provide all the future benefits promised to current members," the report noted, adding that some increase will be necessary. The $14 billion system has not endorsed an increase.
According to the report, IPERS is 92.6% funded. "IPERS has long had an unfunded liability," the report said, noting that the system was $1.6 billion underfunded in fiscal year 1996. "Over time ... the size of the unfunded liability has both waxed and waned," the report said.
Officials at the fund didn't return calls by press time seeking comment.