Improved returns and shifts to allocations aim to protect retirement security for Iowa’s public employees
December 5, 2025 (Des Moines, IA) – At today’s meeting, the Iowa Public Employees’ Retirement System’s (IPERS) Investment Board announced that the system’s funded ratio reached 92.17% at the end of FY2025, improving from 90.75% at the end of FY2024. Strong investment returns precipitated the funding growth.
In September, IPERS reported a 9.87% return on its investment program in FY2025, surpassing the assumed return of 7.00% and generating approximately $4.3 billion of income. At the end of FY2025, the IPERS Trust Fund was valued at $46.68 billion, the highest amount its history.
“I’m proud that IPERS continues to deliver strong investment performances that ensure the fund’s long-term fiscal sustainability for the thousands of Iowans who rely on IPERS benefits,” IPERS’ CEO Greg Samorajski said. “IPERS’ funded ratio is among the best in the nation and proves IPERS’ commitment to delivering on the promise to provide reliable, lifetime retirement benefits to Iowa’s public employees.”
Asset allocation plan amendments
The IPERS Investment Board approved amendments to the system’s asset allocation plan. The Board adjusted allocations in three asset groups: Total Growth Assets, Total Defensive Growth Assets and Total Defensive/Rate Sensitive Assets. These changes were made to reduce exposure to growth assets by reallocating the current 5% Smart Beta allocation into more defensive asset classes. This shift is intended to reduce volatility and better position the fund to weather market downturns without compromising its ability to meet benefit obligations.
The Board annually reviews the asset allocation plan.
Asset allocation plan
| Asset Class | Current Policy | New Policy (Effective 1-1-26) |
|---|---|---|
| U.S. Equity | 21.0% | 21.0% |
| International Equity | 13.0% | 13.0% |
| Private Equity | 17.0% | 17.0% |
| Global Smart Beta | 5.0% | 0.0% |
| Total Growth Assets | 56.0% | 51.0% |
| Public Credit | 3.0% | 6.0% |
| Private Credit | 8.0% | 8.0% |
| Total Credit Assets | 11.0% | 14.0% |
| Core (Plus) Fixed Income | 22.5% | 24.5% |
| Cash | 1.0% | 1.0% |
| Total Defensive Assets | 23.5% | 25.5% |
| Private Real Assets | 9.5% | 9.5% |
| Total Inflation Hedging Assets | 9.5% | 9.5% |
| Total | 100% | 100% |
Complete materials from today’s meeting are available online on IPERS’ website. Recordings of today’s meeting are available by request. The next board meeting is scheduled for March 27, 2026.
The Iowa Legislature created IPERS in 1953 to provide a dependable and economical retirement plan for Iowa's public employees. IPERS is the state’s largest public retirement system, serving more than 400,000 current and former members.