2022 Financial Reports Now Available

January 3, 2023

PERA is pleased to announce that the 2022 Annual Comprehensive Financial Report (ACFR) and Popular Annual Financial Report (PAFR), which is a summary of the ACFR, are now available online on our Financial Reports page. The reports provide financial, investment, actuarial, statistical, and other related information about PERA and the pension plans it administers.

The reports show that, as of June 30, 2022, PERA’s fiduciary net position decreased by over $3.6 billion, or 8.8 percent, from $41.2 billion as of June 30, 2021, to $37.6 billion. The decrease is a result of sharp decline in investment returns along with negative net cash flow due to benefit payments exceeding contributions. Within the ACFR, PERA’s actuary determined, for the second consecutive year, that the statutorily defined investment return assumption of 7.5 percent deviates materially from the guidance set forth in the Actuarial Standards of Practice and suggests a range of 5.64 to 6.84 percent would be reasonable. The difference in the investment return assumptions have a significant impact on the funding ratio and contribution sufficiency/deficiency, which are used to measure the financial health of the retirement plans and how to fund them. Recent volatility of investment returns and the wide range of future expectations makes current decision making challenging. At the moment, making no changes to benefits or contributions appears to be the most prudent decision. When the assumed direction of the Plans becomes more clear, the urgency for action will increase.