The Kentucky Public Pension Authority announced fiscal year 2025 investment returns Wednesday for pension and insurance plans that it manages, with all major investment funds returning more than 11%.
The KPPA’s assets rose $3 billion to $29.8 billion, as of June 30. The system manages the County Employees Retirement System and the Kentucky Employees Retirement System, which each contain two separate pension and insurance funds—a nonhazardous and a hazardous fund—the latter in each case for employees in jobs with higher risks of injury and death, as well as the State Police Retirement System.
CERS nonhazardous and hazardous plans returned 11.6% and 11.7% for the fiscal year, respectively, while their associated insurance plans returned 11.3% and 11.2%, respectively.
KERS nonhazardous and hazardous plans returned 11.2% and 11.9%, respectively, with their respective insurance plans returning 11.8% and 11.2%. The SPRS pension plan returned 11%, while its associated insurance plan returned 11.3%.
Fiscal 2025 is the third consecutive year in which CERS and KERS portfolio returns have neared or exceeded 10%, according to KPPA. The fund exceeded the fiscal year’s median 10.2% return for public plans with at least $1 billion in assets, as tracked by Wilshire Associates.
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Each plan far exceeded its actuarial assumed rate of return, which is 6.5% for CERS pension and insurance funds, SPRS insurance trusts and KERS hazardous pension funds; 6.25% for the KERS hazardous pension; and 5.25% for the SRPS and the KERS nonhazardous pension.
“Despite market volatility and economic uncertainty, our disciplined long-term investment strategy [focuses] on diversification, and the skill of our investment team continued to produce strong relative and risk-adjusted performance for the systems and beneficiaries,” KPPA CIO Steve Willer said in a statement. “All of the funds exceeded their actuarial assumed rates and outperformed their composite benchmarks.”
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