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REPORT DIGEST STATE EMPLOYEES’ RETIREMENT SYSTEM OF FINANCIAL AUDIT For the Year Ended: June 30, 2009 Rele February 16, 2010
State of Ill Office of the Auditor General WILLIAM G. HOLLAND AUDITOR GENERAL
To obtain a copy of the Report
contact: Office of the Auditor
General (217) 782-6046 or TTY (888)
261-2887
This Report Digest and the
Full Report are also available on the worldwide web at http://www.state.il.us/auditor |
INTRODUCTION This digest covers our
financial audit of the State Employees’ Retirement System of Illinois
(System) for the year ended June 30, 2009.
A report on the results of our compliance attestation examination for
the year ending June 30, 2009 is being issued separately. UNDERFUNDING
OF THE SYSTEM The actuarial accrued
liability was valued at $25.3 billion at June 30, 2009. The actuarial value of assets (at smoothed
value) totaled approximately $11.0 billion at June 30, 2009. The method for determining the actuarial
value of assets was changed beginning with the June 30, 2009 valuation. The method was changed from the market value
to a smoothed value where the actuarial investment gains or losses for each
year are recognized in equal amounts over the ensuing five-year period. The difference between the
actuarial accrued liability and the actuarial value of assets of $14.3
billion reflects the unfunded liability of the System at June 30, 2009. The System had a funded ratio (at smoothed
value) of 43.5% at June 30, 2009. When
using the market value (valuation method used June 30, 2008) the System would
have had a funded ratio of 33.5% at June 30, 2009. AUDITORS' OPINION Our auditors state the June 30, 2009
financial statements of the System are fairly presented. ____________________________________ WILLIAM
G. HOLLAND, Auditor General WGH:AKS:pp SPECIAL ASSISTANT AUDITORS BKD LLP were our special assistant auditors for this audit. {Financial data is summarized on the reverse page} |
STATE EMPLOYEES’
RETIREMENT SYSTEM OF ILLINOIS
FINANCIAL
AUDIT
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STATEMENT OF CHANGES IN
PLAN NET ASSETS |
FY 2009 |
FY 2008 |
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ADDITIONS: Contributions -
Participants...................................... Contributions - State Agencies &
Appropriations.......... Total Contributions.................................................. Increase
/ (Decrease) in Fair Value of
Investments..... Investment Income – Net of Management Expenses... Interest Earned on Cash Balances............................. Total Investment Income / (Loss) ............................. Total Revenues................................................. DEDUCTIONS: Benefits.............................................................. Refunds...............................................................
Administrative Expenses......................................... Total Expenses................................................. Revenue Over / (Under) Expenses.......................... |
$ 242,227,432 774,910,344 $ 1,017,137,776 (2,441,040,917) 224,823,314 7,319,968 $(2,208,897,635) $(1,191,759,859) $ 1,300,213,675 14,859,487 10,681,376 $ 1,325,754,538 $(2,517,514,397) |
$
249,955,208 587,732,407 $ 837,687,615 (968,688,184) 274,524,210 13,404,255 $ (680,759,719) $ 156,927,896 $ 1,214,115,627 16,817,433 9,537,305 $ 1,240,470,365 $(1,083,542,469) |
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INVESTMENT SUMMARY – (All investments held in the Illinois State Board
of Investment commingled fund at fair value) |
JUNE 30, 2009 |
JUNE 30, 2008 |
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Foreign Obligations........................................................................... Corporate Obligations....................................................................... Common Stock & Equity Funds
(including Commingled Funds)........... Preferred Stock (Domestic &
Foreign).............................................. Foreign Equity Securities.................................................................. Hedge Funds................................................................................... Real Estate Investments................................................................... Private Equity.................................................................................. Money Market Instruments............................................................... Infrastructure Funds......................................................................... Bank Loans..................................................................................... Forward Foreign Currency
Contracts................................................
Total Investment Portfolio............................................................ Other ISBI Assets Less Liabilities..................................................... ISBI Net Assets.............................................................................. ISBI assets owned by other
retirement systems, JRS & GARS........... State Employees’ Retirement System
Investment in ISBI.............. |
$ 665,018,889 33,237,090 668,047,761 2,945,702,917 334,285 1,482,594,431 880,939,190 875,929,700 450,491,810 235,126,490 305,969,947 197,259,098 (5,594,545) $8,735,057,063 (51,002,791) $8,684,054,272 (483,298,354) $8,200,755,918 |
$ 852,045,701 113,005,430 1,058,164,332 4,241,685,933 5,094,532 1,984,314,463 598,985,402 1,332,081,349 524,628,589 307,481,504 209,975,518 202,137,983 (72,622) $11,429,528,114 (114,474,953) $11,315,053,161 (661,079,640) $10,653,973,521 |
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ADMINISTRATIVE
EXPENSES |
FY 2009 |
FY 2008 |
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Retirement, Insurance & Social Security............................................ Contractual Services........................................................................ Electronic Data Processing............................................................... Printing............................................................................................ Telecommunication.......................................................................... Travel............................................................................................. Commodities.................................................................................... Provision for Depreciation................................................................ Automotive...................................................................................... Other Expenses (Net)...................................................................... Total
Administrative Expenses................................................... |
$ 4,044,917 2,156,065 1,746,425 2,210,406 52,521 67,063 30,581 29,298 244,771 19,305 80,024 $10,681,376 |
$ 3,740,484 1,827,713 1,438,261 2,119,167 77,075 62,341 32,450 27,261 211,508 18,535 (17,490) $9,537,305 |
FUNDING PROGRESS
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JUNE 30,
2009
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JUNE 30,
2008
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Actuarial Accrued
Liability................................................................. Actuarial Value of
Assets................................................................... Unfunded Actuarial Accrued
Liability.................................................. Funded Ratio..................................................................................... |
$25,298,346,092 10,999,953,527 $14,298,392,565
43.5% |
$23,841,280,102 10,995,366,485 $12,845,913,617 46.1% |
EXECUTIVE
SECRETARY
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During Engagement Period: Tim Blair, Acting Currently:
Tim Blair, Acting |
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