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PERS reports $9.2 billion preliminary earnings for 2025, funded status rises to ~80%
Summary
The Public Employees Retirement System reported a preliminary $9.2 billion earnings crediting for 2025, lifting reserves to $106.2 billion and reducing the unfunded accrued liability by an estimated $2.5 billion; committee acknowledged the report and members discussed implications for employer contribution rates.
The Public Employees Retirement System reported to the Ways and Means committee that the PERS board approved a preliminary net earnings crediting of $9.2 billion for calendar year 2025, bringing system reserves from $97.1 billion to $106.2 billion.
Representative Gomberg said the $9.2 billion represents an overall return of 9.5% for 2025, which is 2.6 percentage points above the assumed earnings rate of 6.9%. He said preliminary crediting would reduce the unfunded accrued liability from $24.8 billion to $22.3 billion — a $2.5 billion reduction — and increase the system's funded status to about 80%.
Gomberg noted advisory employer contribution rates have been published by the PERS board for the 2729 biennium and that board-adopted employer rates will rely on 2025 actual earnings; he added that, "holding all other PERS board and actuarial variables constant, 2729 employer contribution rates should decline due to the investment returns for 2025 being above the assumed earnings rate." The committee acknowledged receipt of the report with no objection recorded.
Provenance (selected): topicintro: "The PERS board approved net preliminary crediting of $9,200,000,000 for calendar year 2025" (SEG 912–SEG 916). topicfinish: "Your general government subcommittee recommends acknowledging receipt of this report." (SEG 934–SEG 935).
