REPORT DIGEST

STATE UNIVERSITIES RETIREMENT SYSTEM

SPECIAL FUNDING SITUATION ALLOCATION
SCHEDULES
FOR THE YEAR ENDED JUNE 30, 2021

Release Date:  Aug. 30, 2022

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 Special Funding
Situation Allocation Schedules as of
and for the year ended June 30, 2021.
The State of Illinois is considered a
non-employer contributing entity to
the community colleges, State
universities, Board of Examiners,
Illinois Community College Trustees’
Association, and Illinois Federation
of Teachers.  The State Universities
Retirement System (System) is the
administrator of a cost-sharing,
multiple-employer defined benefit
public employee retirement plan (DB
Plan) and a cost-sharing, multiple-
employer defined contribution public
employee retirement plan (DC Plan).

Employers participating in a DB Plan
and/or a DC Plan under a special
funding situation must recognize their
proportionate share of the collective
pension expense supported by the non-
employer contributing entity as
pension expense and special funding
situation revenue within their
financial statements.  In addition,
the employers must present certain
information on their DB Plan’s net
pension liability (NPL) associated
with the special funding situation
within their notes to their financial
statement and required supplementary
information disclosures.

GASB Statement No. 68, paragraph 92,
states that in determining an
employer’s proportion of the
collective NPL, the basis should be
consistent with the manner in which
contributions to the pension plan,
excluding those to separately finance
specific liabilities of the individual
employer to the plan, as determined,
which is consistent with paragraphs
48-51.

The NPL as of June 30, 2021, and total
DB Plan pension expense for the year
ended June 30, 2021, are based on a
one-year roll-forward of an actuarial
valuation performed as of June 30,
2020.  For the allocations to be
reflective of the employee census
underpinning that actuarial valuation,
the basis of this allocation is the
proportion of each employer’s employee
contributions to the DB Plan for the
year ended June 30, 2020.  The total
DC Plan pension expense for the year
ended June 30, 2021, is based on
financial statement information for
the same year.  Unlike the DB Plan,
there are no underlying actuarial
inputs and, therefore, no inherent
one-year lag in the employee
population driving these
contributions.  As a result, the
adjusted net contributions to the DC
Plan used for this allocation are for
the year ended June 30, 2021.

Due to the employers’ needing to
report these special funding amounts
in their financial statements prepared
in accordance with GAAP, the System
has prepared the Special Funding
Situation Allocation Schedules, which
provides the necessary financial
information for the employers.  By
having the Special Funding Situation
Allocation Schedules audited, this
will also provide the employers’
auditors an Independent Auditor’s
opinion in regard to the Special
Funding Situation Allocation
Schedules.

AUDITORS' OPINION

Our auditors stated the Special
Funding Situation Allocation Schedules
and the related notes are fairly
presented in all material respects as
of and for the year ended June 30,
2021.

This audit of the Special Funding
Situation Allocation Schedules was
conducted by FORVIS, 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

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