KPPA Releases Annual Comprehensive Report

The Kentucky Public Pension Authority (KPPA) Board of Trustees recently heard testimony regarding their 2023 Annual Comprehensive Financial Report (ACFR).  

The ACFR report is a set of financial statements that outline the financial position of government entities at the year’s end.  

The report outlined that the County Employees Retirement System (CERS) nonhazardous plan had 255,055 members. Of those members, 31.8% were active, 26.2% were retired, and 41.9% were inactive. The CERS hazardous plan had 22,316 members. Of those, 41.1% were active, 42.3% were retired, and 16.5% were inactive. CERS members comprise 65.8% of the total Kentucky Retirement Systems (KRS) membership. 

The largest participants in CERS were the Jefferson County Board of Education (5,029), the Louisville Jefferson County Metro Government (4,495), the Fayette County Board of Education (2,009), and the Lexington-Fayette Urban County Government (1,635).  

The CERS nonhazardous plan’s funded ratio is 56.1%, and employers will have a total projected contribution rate of 19.71% in July 2024. The CERS hazardous plan is 51.4% funded, and employers will have a total projected contribution rate of 38.61% in July 2024.  

KPPA reports that the total net fiduciary position in CERS nonhazardous and hazardous for the pension and insurance funds was $12.7 billion and $4.7 billion, respectively. The net fiduciary position is the resources that have been accumulated to pay benefits. CERS (both nonhazardous and hazardous) paid retirement benefits of approximately $1.2 billion for both the hazardous and nonhazardous plans.  

Click here to view the KPPA 2023 Annual Comprehensive Financial Report (ACFR).