REPORT DIGEST

 

 

GENERAL ASSEMBLY RETIREMENT SYSTEM,

STATE OF ILLINOIS

 

FINANCIAL AUDIT

For the Year Ended:

June 30, 2009

 

 

 

 

Release Date:

February 16, 2010

 

 

 

 

 

 

 

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

Iles Park Plaza

740 E. Ash Street

Springfield, IL 62703

(217) 782-6046 or TTY (888) 261-2887

 

This Report Digest and the Full Report are also available on

the worldwide web at

http://www.auditor.illinois.gov

 

 

 

 

INTRODUCTION

 

This digest covers our financial audit of the General Assembly Retirement System, State of Illinois (System) for the year ended June 30, 2009. A report on the results of our compliance attestation examination for the year ending June 30, 2009 is being issued separately.

 

UNDERFUNDING OF THE SYSTEM

 

The actuarial accrued liability was valued at $245.2 million at June 30, 2009. The actuarial value of assets (at smoothed value) totaled approximately $71.6 million at June 30, 2009. The method for determining the actuarial value of assets was changed beginning with the June 30, 2009 valuation. The method was changed from the market value to a smoothed value where the actuarial investment gains or losses for each year are recognized in equal amounts over the ensuing five-year period.

 

The difference between the actuarial accrued liability and the actuarial value of assets of $173.6 million reflects the unfunded liability of the System at June 30, 2009. The System had a funded ratio (at smoothed value) of 29.2% at June 30, 2009. When using the market value (valuation method used June 30, 2008) the System would have had a funded ratio of 22.5% at June 30, 2009.

 

 

AUDITORS' OPINION

 

Our auditors state the June 30, 2009 financial statements of the System are fairly presented.

 

 

 

____________________________________

WILLIAM G. HOLLAND, Auditor General

 

WGH:AKS:pp

 

SPECIAL ASSISTANT AUDITORS

 

BKD LLP were our special assistant auditors for this audit.

 

{Financial data is summarized on the reverse page}

 

 

 

 

 

GENERAL ASSEMBLY RETIREMENT SYSTEM, STATE OF ILLINOIS

FINANCIAL AUDIT

FOR THE YEAR ENDED JUNE 30, 2009
 

STATEMENT OF CHANGES IN PLAN NET ASSETS

FY 2009

FY 2008

ADDITIONS: Contributions - Participants......................................

Contributions Employer / Appropriations...................

Total Contributions...............................................

Increase / (Decrease) in Fair Value of Investments......

Investment Income Net of Management Expenses...... Interest Earned on Cash Balances...............................

Total Revenues.................................................

DEDUCTIONS: Benefits...............................................................

Refunds................................................................

Administrative Expenses.........................................

Total Expenses................................................

Revenue Over / (Under) Expenses.........................

$ 1,697,575

8,856,422

$ 10,553,997

(16,141,323)

1,411,133

67,905

$ (4,108,288)

$ 15,857,219

71,589

276,722

$ 16,205,530

$(20,313,818)

$ 1,772,860

6,809,800

$ 8,582,660

(6,734,639)

1,893,640

132,702

$ 3,874,363

$ 15,258,621

147,804

244,170

$ 15,650,595

$(11,776,232)

INVESTMENT SUMMARY (All investments held in the Illinois State Board of Investment commingled fund at fair value)

JUNE 30, 2009

JUNE 30, 2008

Government and Agency Obligations.................................................

Foreign Obligations...........................................................................

Corporate Obligations.......................................................................

Common Stock & Equity Funds (including Commingled Funds)...........

Preferred Stock...............................................................................

Foreign Equity Securities..................................................................

Hedge Funds...................................................................................

Real Estate Investments...................................................................

Private Equity..................................................................................

Money Market Instruments...............................................................

Infrastructure Funds.........................................................................

Bank Loans.....................................................................................

Forward Foreign Currency Contracts................................................

Total Investment Portfolio............................................................

Other ISBI Assets Less Liabilities.....................................................

ISBI Net Assets........................................................................

Investments owned by other retirement systems, SERS & JRS...........

General Assembly Retirement System Investments.......................

$ 665,018,889

33,237,090

668,047,761

2,945,702,917

334,285

1,482,594,431

880,939,190

875,929,700

450,491,810

235,126,490

305,969,947

197,259,098

 (5,594,545)

$ 8,735,057,063

(51,002,791)

$ 8,684,054,272

(8,636,360,519)

$ 47,693,753

$ 852,045,701

113,005,430

1,058,164,332

4,241,685,933

5,094,532

1,984,314,463

598,985,402

1,332,081,349

524,628,589

307,481,504

209,975,518

202,137,983

(72,622)

$11,429,528,114

(114,474,953)

$11,315,053,161 (11,243,129,218)

$ 71,923,943

ADMINISTRATIVE EXPENSES

FY 2009

FY 2008

Personal Services.............................................................................

Retirement, Insurance & Social Security............................................

Contractual Services........................................................................

Electronic Data Processing...............................................................

Printing............................................................................................

Telecommunication..........................................................................

Travel.............................................................................................

Commodities....................................................................................

Operation of Automotive Equipment..................................................

Provision for Depreciation................................................................

Change in Accrued Compensated Absences......................................

Total Administrative Expenses...................................................

$117,817

60,722

88,043

2,682

1,910

999

608

303

648

663

2,327

$276,722

$107,733

52,785

71,960

4,313

2,097

982

830

218

450

880

1,922

$244,170

FUNDING PROGRESS

JUNE 30, 2009

JUNE 30, 2008

Actuarial Accrued Liability.................................................................

Actuarial Value of Assets...................................................................

Unfunded Actuarial Accrued Liability..................................................

Funded Ratio.....................................................................................

$245,226,299

71,573,865

$173,652,434

29.2%

$235,780,071

75,405,943

$160,374,128

32.0%

EXECUTIVE SECRETARY

 

 

During Engagement Period: Tim Blair, Acting

Currently: Tim Blair, Acting