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Report say Iowa public pension fund has $5 billion shortfall

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December 2nd, 2015 by Ric Hanson

DES MOINES, Iowa (AP) – A report says Iowa’s largest public employees’ pension fund has a long-term shortfall of about $5 billion. The Des Moines Register reports that Gov. Terry Branstad was briefed Tuesday on the status of the Iowa Public Employees’ Retirement System (IPERS), which has 346,000 members. The report says the pension fund’s assets total about $28 billion and is nearly 84 percent funded, slightly up from a year ago.

The system serves current, former and retired employees of state government, cities, counties and school districts. The contribution rate by local government and state public employees to the main pension fund has increased in recent years to almost 15 percent of an employee’s earnings.

Donna Mueller, the fund’s chief executive officer, says the report shows progress and stability. Mueller said the system’s $5 billion in unfunded liabilities could be paid off in 23 years.