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Unfunded liability at June 30, 2003, totals $746 million
$142 million of bond proceeds were deposited into the System’s investment account on July 2, 2003
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INTRODUCTION
This digest covers our financial audit of the System for the year ended June 30, 2003. A compliance audit covering the year ending June 30, 2003 is being issued separately.
The System shares administrative staff and common administrative expenses with the General Assembly Retirement System (GARS). The GARS reimburses the System for 40 percent of the administrative costs incurred.
It should be noted that, pursuant to the Illinois Pension Code, the Illinois State Board of Investment manages the investments of the System.
UNDERFUNDING OF THE SYSTEM
The actuarial accrued liability was valued at $1,076 million at June 30, 2003. The actuarial value of assets (at fair value) totaled approximately $330 million at June 30, 2003. The difference between the liability and the assets of $746 million reflects the unfunded liability of the System at June 30, 2003. The Judges’ Retirement System had a funded ratio of 30.7% at June 30, 2003.
SUBSEQUENT EVENT
On April 7, 2003, Governor Rod Blagojevich signed House Bill 2660 into law as Public Act 93-0002. This new law authorized the State of Illinois to issue $10 billion of General Obligation Bonds for the purpose of making contributions to designated retirement systems. The Judges Retirement System is one of the designated retirement systems.
The Judges Retirement System received an allocation of bond proceeds equal to $141,955,483 on July 1, 2003. The monies were deposited into its Master Trust account with the Illinois State Board of Investments, on July 2, 2003.
AUDITORS' OPINION
Our auditors state that the June 30, 2003 financial statements of the System are fairly presented.
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WILLIAM G. HOLLAND, Auditor General
WGH:RPU:pp
SPECIAL ASSISTANT AUDITORS
McGladrey & Pullen LLP were our special assistant auditors for this audit.
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