Kansas Public Employees Retirement System, Topeka, lost almost 30% of its value in just over a year, but benefit payments are safe, according to CIO Robert “Vince” Smith.
The fund is down to $10.1 billion as of Oct. 31 from a high of $14.4 billion on Sept. 30, 2007, Mr. Smith said.
Retirement system officials testified Tuesday before the Kansas Legislature’s Joint Committee on Pensions, Investments and Benefits.
“They (legislative committee members) are looking at solutions,” Mr. Smith said in an interview, though he declined to comment on possible strategies for making up the loss, such as putting a freeze on cost-of-living adjustments for retirees or raising employees’ contributions to the system.
Mr. Smith said the system still has “plenty of cash” to make its payments.
“These returns are driven by the downdraft in the equity markets,” he said. “We’re just in the same boat as everybody else.”