REPORT DIGEST

TEACHERS’ RETIREMENT SYSTEM

OF THE STATE OF ILLINOIS

FINANCIAL AUDIT

For the Year Ended:

June 30, 2001

Release Date:
January 30, 2001

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State of Illinois

Office of the Auditor General

WILLIAM G. HOLLAND

AUDITOR GENERAL

 

 

To obtain a copy of the Report contact:
Office of the Auditor General
Attn: Records Manager
Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703

(217)782-6046 or TDD (217) 524-4646

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 $15,851 million at June 30, 2001. The System’s funded ratio at that date was 59.5%.
  • As of September 30, 2001 the System had incurred an approximate $1,418 million (5.8%) decrease in its investment portfolio since June 30, 2001.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unfunded Liability at June 30, 2001 totals $15,851 million

 

 

 

 

$1,418 million decrease in the investment portfolio from June 30, 2001 to September 30, 2001

 

 

 

 

 

 

 

 

 

 

 

INTRODUCTION

This digest covers our financial audit of the System for the year ended June 30, 2001. A compliance audit covering the year ending June 30, 2001 will be issued separately.

UNDERFUNDING OF THE SYSTEM

The actuarial accrued liability was valued at $39,167 million at June 30, 2001. The actuarial value of assets (at market) totaled approximately $23,316 million at June 30, 2001. The difference between the liability and the assets of $15,851 million reflects the unfunded liability of the System at June 30, 2001. The Teachers’ Retirement System had a funded ratio of 59.5% at June 30, 2001.

MARKET VALUE DECLINE

The System had a decline in its investment portfolio subsequent to June 30, 2001. As of September 30, 2001 the System had incurred an approximate $1,418 million (5.8%) decrease in its investment portfolio since June 30, 2001 due to declines in the domestic and international equity markets.

AUDITORS' OPINION

Our auditors state the June 30, 2001 financial statements of the System are fairly presented in all material respects.

 

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WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

McGladrey & Pullen LLP were our special assistant auditors for this audit.