December 1, 2022 (Des Moines, IA) - According to an annual report from its actuary, the funded ratio of the Iowa Public Employees’ Retirement System (IPERS) grew more than 1% between FY2021 and FY2022. Strong investment returns in FY2021 buoyed the funded ratio, which grew to 89.5% in FY2022, compared to 88.3% in FY2021. The same report showed IPERS’ unfunded actuarial liability decreased from $4.9 billion in FY2021 to $4.6 billion in FY2022. As of June 30, 2022, the market value of the IPERS Trust Fund equaled $40.2 billion.
“IPERS is proud to achieve continued growth and maintain our position as one of the best-funded public pension plans in the country,” IPERS CEO Greg Samorajski said. “Even as we continue to navigate challenging investment markets, IPERS’ Board and staff are committed to implementing revenuegenerating strategies intended to ensure the ongoing strength of the IPERS Trust Fund.”
At today’s meeting IPERS staff also outlined plans to commit up to $1.95 billion to private market investments in CY2023. Staff anticipates making commitments of up to $700 million to private equity investments, $850 million to private credit investments and $400 million to private real asset investments in CY2023. At its meeting in September 2022, the Investment Board updated IPERS’ asset allocation plan and increased the private equity allocation from 13% to 17% and the private real assets allocation from 8.5% to 9.5%. IPERS continue to add mandates to meet the allocations to private markets.
Complete materials from the IPERS Investment Board meeting are available. The next meeting is scheduled for March 24, 2023.
The Iowa Legislature created IPERS in 1953 to provide a dependable and economical retirement plan for Iowa's public employees.