REPORT DIGEST STATE EMPLOYEES’ RETIREMENT SYSTEM FINANCIAL AUDIT FOR THE YEAR ENDED JUNE 30, 2018 Release Date: January 23, 2018 FINDINGS THIS AUDIT: 0 FINDINGS LAST AUDIT: 0 State of Illinois, Office of the Auditor General FRANK J. MAUTINO, AUDITOR GENERAL To obtain a copy of the Report 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 and Full Report are also available on the worldwide web at www.auditor.illinois.gov INTRODUCTION This digest covers the financial statement audit of the State Employees’ Retirement System of the State of Illinois (System) as of and for the year ended June 30, 2018. The State Employees’ Retirement System’s Compliance Examination covering the year ended June 30, 2018 will be issued in a separate report at a later date. The System’s total pension liability is $50.5 billion at June 30, 2018, an increase of $1.1 billion from $49.4 billion at June 30, 2017. The System’s net pension liability at June 30, 2018 is $33.0 billion, which is the difference between the System’s fiduciary net position of $17.5 billion and the total pension liability. The System’s net position as a percentage of the total pension liability is 34.57% at June 30, 2018 as compared to 33.44% at June 30, 2017. The criteria used for computing pension liability information in the financial report in accordance with GASB Statement No. 67 differs from the criteria used to compute the actuarial accrued liability and actuarial unfunded liability under the State’s funding plan, therefore this information under the State’s funding plan is no longer reported in the financial statements. There were no findings reported under Government Auditing Standards in our audit. AUDITOR’S OPINION The auditors stated the financial statements of the System as of and for the year ended June 30, 2018 are fairly stated in all material respects. This financial audit was conducted by RSM LLP. JANE CLARK Division Director This report is transmitted in accordance with Section 3-14 of the Illinois State Auditing Act. FRANK J. MAUTINO Auditor General FJM:JAF