Iowa Public Employees' Retirement System unfunded liability nears $5.6 billion [View all]

Iowa's largest public employees' pension fund has a long-term unfunded liability of nearly $5.6 billion, but steps are being taken to address the shortfall and have it paid off in 28 years, an independent actuary told state officials Thursday.

A report prepared for the Iowa Public Employees' Retirement System, which has 350,000 members, showed the pension fund had a market value of $28.3 billion on June 30, 2016. State officials said there is no problem providing monthly benefit checks for current retirees and they do not anticipate any difficulties meeting the pension fund's promises in the future.

"The unfunded actuarial liability is a big number, but it is not an obligation that is due right now," said Patrice Beckham, a consulting actuary with Cavanaugh Macdonald Consulting, LLC, of Bellevue, Neb. "There is time to pay it off and you need a plan to pay it off, and that is exactly what is in place here."

The report was released as conservative policy groups and taxpayers organizations have been urging the Iowa Legislature to shift IPERS away from traditional defined benefit pension plans, which guaranteed monthly checks to retirees.

Read more: http://www.desmoinesregister.com/story/news/politics/2016/12/01/ipers-unfunded-liability-nears-56-billion/94735470/