KPPA Shows 7%+ Interest Earned and Credit for Tier 3 Plans

The Kentucky Public Pensions Authority (KPPA) is announcing impressive interest earned and credited to members in the Tier 3 Hybrid Cash Balance Plan.  

All the plans earned above the 4% mark, with most nearing or exceeding 8% interest earned.  

For the fiscal year, which ended June 30, 2025, the following earned interest has been calculated by KPPA: 

• County Employees Retirement System Nonhazardous       8.42% 

• County Employees Retirement System Hazardous             8.58% 

• Kentucky Employees Retirement System Nonhazardous   7.16% 

• Kentucky Employees Retirement System Hazardous         8.28% 

• State Police Retirement System                                          7.49% 

Tier 3 covers anyone whose original hire date is Jan. 1, 2014, or later. Tier 3 accounts earn a guaranteed 4% each fiscal year. If the five-year Geometric Average Net Investment Return (GANIR) exceeds 4% in the current fiscal year, Tier 3 members’ accounts are also credited with 75% of the GANIR above 4% (the “upside” share). The above percentages reflect both the 4% guaranteed and the calculated upside share for FY 2025. 

There are more than 161,000 KPPA members in the Tier 3 plan, making up 36 % of total membership.  

 Members can view their annual statement by logging in to MyRetirement.ky.gov.