Series of November 2019 Capital Bonds
SEAL OF
THE STATE
AUG. 96 1818
Pension Overview
• The State provides funding for five systems - the
Teachers' Retirement System, the State Universities
Retirement System, the State Employees' Retirement
System, the Judges' Retirement System and the
General Assembly Retirement System
History of Employer Contributions ($millions)
Actuarially
Fiscal
Amount
Year
Contributed¹
Required
Contribution
Percentage
Contributed²
2015
7,020.1
7,896.8
88.9%
2016
7,501.9
8,388.4
89.4%
• Actuarial Assets as of FY 2018 for the 5 systems
combined are $89.6 billion and the Asset Market Value
is $89.8 billion
2017
7,803.6
10,422.7
74.9%
2018
7,788.9
11,882.4
65.5%
• The State Retirement Systems, in aggregate, were
funded at 40.1% as of FY 2018 based on the asset
smoothing method and 40.2% using asset market
value; individual percentages for each fund vary
Investment Rate of Return Assumptions Used by the
Retirement Systems
2009
2018
TRS
8.50%
7.00%
FY 2018 State contributions to the retirement systems
totaled $7.8 billion
SURS
8.50%
6.75%
SERS
8.50%
7.00%
GARS
8.00%
6.75%
• The systems are required to be 90% funded by 2045
JRS
8.00%
6.75%
National Median³
7.25%
Notes: Annual Actuarial valuations of the Retirement Systems as of June 30, 2018. Comprehensive Annual Financial Reports of the Retirement Systems for the fiscal years ending June 30, 2009 and June 30, 2018.
1. Includes all State Funds. TRS also includes local employers and federal funds that count towards the Actuarially Required Contribution (ARC). 2. The State's percentage contributed declined in Fiscal Year 2017 primarily as a result of
TRS establishing a 20-year closed amortization period in calculating its Actuarially Required Contribution (ADC). This amortization period, which is shorter than that used in calculating the Required Annual Statutory Contribution, causes the
ADC for TRS to substantially exceed the Required Annual Statutory Contribution which the State is authorized to pay under the Pension Code. 3. NASRA Issue Brief: Public Pension Plan Investment Return Assumptions, February 2019
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