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REPORT DIGEST TEACHERS’ RETIREMENT SYSTEM OF THE STATE OF FINANCIAL AUDIT For the Year Ended: June 30, 2009
Rele February 16, 2010
State of Illi 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.auditor.illinois.gov |
INTRODUCTION This digest covers our
financial audit of the Teachers’ Retirement System of the State of UNDERFUNDING OF THE SYSTEM
The actuarial accrued
liability was valued at $73.0 billion at June 30, 2009. The actuarial value of assets (at smoothed
value) totaled approximately $38.0 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 $35.0 billion reflects the
unfunded liability of the System at June 30, 2009. The System had a funded ratio (at smoothed
value) of 52.1% at June 30, 2009. When
using the market value (valuation method used June 30, 2008) the System would
have had a funded ratio of 39.1% 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:RPU:pp SPECIAL
ASSISTANT AUDITORS BKD, LLP were our special assistant auditors for this audit.
{Financial data is summarized on the reverse page.} |
TEACHERS' RETIREMENT SYSTEM OF
FINANCIAL
AUDIT
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OPERATING
STATEMENT ANALYSIS |
FY 2009 |
FY 2008 |
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REVENUES:
Contributions - Members...............................................
Contributions
- State of Illinois.......................................
Contributions
- School Districts / Employers...................
Total Contributions.....................................................
Investment Income – (Decrease) in Fair Value...............
Investment
Income - Income From Investments............. Investment Expense.................................................... Total
Investment (Loss)..............................................
Total Revenues / (Loss)............................................ EXPENSES:
Benefits........................................................................
Refunds.......................................................................
Administrative Expenses................................................
Total Expenses.........................................................
Revenue (Under) Expenses............................................ |
$ 876,182,122 1,451,591,716 152,328,853 $
2,480,102,691 (9,453,113,362)
957,642,297 (192,814,446) $(8,688,285,511) $(6,208,182,820) $ 3,653,713,951 53,709,137 17,387,936 $ 3,724,811,024
$(9,932,993,844) |
$ 865,400,168 1,041,114,825 130,673,629
$
2,037,188,622 (3,235,738,717)
1,409,751,363 (188,915,012) $(2,014,902,366) $ 22,286,256 $ 3,423,981,732 60,285,624 16,613,364 $ 3,500,880,720
(3,478,594,464) |
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INVESTMENT PORTFOLIO ANALYSIS - Fair Value |
JUNE 30, 2009 |
JUNE 30, 2008 |
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Fixed
Income.................................................................................... Equities............................................................................................. Real Estate....................................................................................... Short Term Investments..................................................................... Private Equity.................................................................................... Real Return....................................................................................... Absolute Return................................................................................ Foreign Currency............................................................................... Derivatives........................................................................................ Total
Investment Portfolio.................................................................. |
$ 6,374,168,717 13,519,469,802 3,380,826,272 1,062,916,049 2,344,035,473 1,531,130,405 719,854,863 35,797,184 (6,846,436) $28,961,352,329 |
$ 8,970,063,123
19,343,733,243 4,794,916,293 1,043,222,891 2,399,224,145 2,118,735,890 504,224,094 60,605,839 (25,678,522) $39,209,046,996 |
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ADMINISTRATIVE EXPENSES |
FY 2009 |
FY 2008 |
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Personal Services.............................................................................. Professional Services......................................................................... Postage............................................................................................. Machine Repair and Rental................................................................ Other Contractual Services................................................................ Commodities..................................................................................... Occupancy Expense.......................................................................... Provision for Depreciation.................................................................. (Gain) / Loss on Disposal of Equipment............................................... Total Administrative Expenses.................................................... |
$12,860,131 1,428,771 430,707 642,351 830,099 474,844 250,955 481,614 (11,536) $17,387,936 |
$12,190,988 1,164,400 481,642 660,156 1,062,093 457,052 210,654 386,165 214 $16,613,364 |
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SELECTED ACCOUNT BALANCES |
JUNE 30, 2009 |
JUNE 30, 2008 |
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Cash................................................................................................. Total Accounts Receivable & Prepaid
Expenses................................. Property and Equipment, net............................................................... Benefits and Refunds Payable............................................................ Administrative and Investment Expenses
Payable................................ Payable to Brokers for
Unsettled Trades, net...................................... |
$ 3,849,113 $267,580,363 $ 3,707,543 $ 5,317,072 $104,848,696 $628,594,137 |
$ 3,668,043 $ 404,110,007 $ 2,548,814 $ 3,996,767 $ 148,806,825 $1,035,846,981 |
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FUNDING PROGRESS |
JUNE 30, 2009 |
JUNE 30, 2008 |
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Actuarial
Accrued Liability................................................................... Actuarial
Value of Assets.................................................................... Unfunded
Actuarial Accrued Liability................................................... Funded
Ratio....................................................................................... |
$73,027,198,000 38,026,044,000 $35,001,154,000 52.1% |
$68,632,367,000 38,430,723,000 $30,201,644,000 56.0% |
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EXECUTIVE DIRECTOR |
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During Engagement Period: Jon Bauman (through April 8, 2009), Stan
Rupnik, Acting (effective April 9, 2009) Currently: Stan
Rupnik, Acting |
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