Beliefs

KCPERS exists solely to provide present and future retirement, disability, and survivor benefits to the law enforcement and civilian employees of the Kansas City, Missouri Police Department and to cover reasonable expenses incurred to provide such benefits. The Plan’s overall objective is to achieve the highest level of investment performance that is compatible with its risk tolerance and prudent investment practices. Because of the long-term nature of the Plan’s pension liabilities, the Board maintains a long-term perspective in formulating and implementing the Plan’s investment policies and in evaluating its investment performance.

 

Based on general beliefs about the long-term investment returns available from a well-diversified portfolio, the Board adopted the following Plan Investment Objectives:

 

•     The Plan’s assets will be invested in a manner consistent with generally accepted standards of fiduciary responsibility and with the safeguards that would guide a prudent person/investor.
•     The Plan’s assets will be invested in a manner expected to earn a sufficient total rate of return on average and over time to meet all benefit and expense obligations while striving to reduce the volatility of member and employer contribution rates.
•     Within the framework of prudent risk limitations, the investment objective is to achieve a long-term total rate of return that satisfies, on average, the actuarially assumed rate of return.
•     The Plan shall also strive to achieve investment performance over time that matches or exceeds the rate of inflation thereby sustaining the real value of Plan assets.
•     The Plan costs associated with managing the Plan assets will be carefully considered and should be held at the lowest possible level, all other items equal, consistent with prudent asset management.
•     Individual Investment Management Agreements will define and control each investment manager's discretion and authority within the respective investment strategy or mandate.