The Truth about IPERS

Iowa Public Employees’ Retirement System (IPERS) is the state's largest retirement system and is committed to transparent communication with our members, lawmakers and all Iowans.

IPERS Grows Iowa's Economy

The legislature created IPERS in 1953 to provide a dependable and economical retirement plan for Iowa's public employees who teach our children, maintain our roads and parks, care for our most vulnerable residents and protect our citizens. Today, IPERS is a $34 billion trust fund that pays more than $2.2 billion in annual benefits.

IPERS PAYS OVER $2 BILLION
TO RETIREES ANNUALLY.

IPERS is Committed to Sustainability

Recessions in 2001 and 2008 negatively impacted investment revenue for retirement systems like IPERS. Combined with the Legislature's decision to delay a necessary contribution rate increase, a shortfall, or unfunded actuarial liability (UAL), developed. This shortfall means that if all retirement benefits had to be paid today, there wouldn't be enough money. IPERS' Benefits Advisory Committee worked quickly to propose important pension reform that aimed to eliminate the shortfall within 30 years. The Legislature instituted this reform in 2012.

IPERS IS ON TRACK TO
CLOSE THE SHORTFALL.

IPERS is Fiscally Sound

The pension reform implemented in 2012 resulted in an immediate savings of $674 million, and IPERS continues to administer the system to exceed important benchmarks of fiscal soundness. For example, a funded ratio of 80% indicates a strong and secure pension plan. In FY18, IPERS' funded ratio was 83.7%

*Source: CEM Benchmarking Inc., FY18

PENSION REFORM, ENACTED
IN 2012, WILL ELIMINATE THE
SHORTFALL WITHIN 30 YEARS.

IPERS Creates a Secure Retirement

IPERS takes seriously its responsibility to educate members about the plan, its attributes and how it differs from other retirement savings plans. A defined benefit plan, IPERS benefits are guaranteed for life, meaning once a member retires, he/she will receive the same monthly benefit for the remainder of his/her life. This should not be confused with a defined contribution plan, such as a 401(k), 457, or 403(b) plan. Benefits from these plans may fluctuate, based on the amount of money invested and the performance of the stock market.

**Source: National Institute on Retirement Security

***Source: National Association of State Retirement Administrators