REPORT DIGEST STATE EMPLOYEES’ RETIREMENT SYSTEM OF ILLINOIS FINANCIAL AUDIT For the Year Ended: June 30, 2004 Release Date: February 2, 2005
State of Illinois Office of the Auditor General WILLIAM G. HOLLAND AUDITOR GENERAL
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contact: Office of the Auditor
General Iles Park Plaza 740 E. Ash Street Springfield, IL 62703 (217) 782-6046 or TTY (888) 261-2887 This Report Digest is also
available on the worldwide web at http://www.state.il.us/auditor |
SYNOPSIS ¨
The unfunded liability of the System was $8,453 million at June 30,
2004. The System’s funded ratio at
that date was 54.2%. ¨
Approximately $1,386
million of bond proceeds were deposited into the System’s investment account
on July 2, 2003 as a result of P.A. 93-0002.
This new law authorized the State of Illinois to issue $10 billion in
General Obligation bonds for the purpose of making contributions to
designated retirement systems. |
Unfunded liability at June 30, 2004 totals $8,453 million $1,386
million of bond proceeds were deposited into the System’s investment account
on July 2, 2003 |
INTRODUCTION
This
digest covers our financial audit of the System for the year ended June 30,
2004. A report on the results of our
compliance attestation examination for the year ending June 30, 2004 is being
issued separately. 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 $18,443 million at June 30,
2004. The actuarial value of assets
(at fair value) totaled approximately $9,990 million at June 30, 2004. The difference between the liability and
the assets of $8,453 million reflects the unfunded liability of the System at
June 30, 2004. The State Employees’
Retirement System had a funded ratio of 54.2% at June 30, 2004. PENSION BOND
FUNDING
In fiscal year 2003,
Governor Rod Blagojevich and the General Assembly agreed to issue bonds in
order to provide funding to the State pension systems. The State Employees’ Retirement System is
one of the designated retirement systems. The State Employees’
Retirement System received an allocation of bond proceeds equal to
$1,385,895,278 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, 2004 financial statements of the System are fairly
presented. ____________________________________ WILLIAM G. HOLLAND, Auditor General WGH:RPU:pp SPECIAL ASSISTANT AUDITORS McGladrey & Pullen LLP were our special assistant auditors for this audit. |