REPORT DIGEST

 

JUDGESí

RETIREMENT SYSTEM

OF ILLINOIS

 

FINANCIAL AUDIT

For the Year Ended:

June 30, 2003

 

Release Date:

February 10, 2004

 

 

 

 

 

 

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 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 $746 million at June 30, 2003. The Systemís funded ratio at that date was 30.7%.
  • Approximately $142 million of bond proceeds were deposited into the Systemís investment account on July 2, 2003 as a result of P.A. 93-0002. This new law authorized the State of Illinois to issue $10 billion in General Obligation bonds for the purpose of making contributions to designated retirement systems.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unfunded liability at June 30, 2003, totals $746 million

 

 

 

 

 

 

$142 million of bond proceeds were deposited into the Systemís investment account on July 2, 2003

 

 

 

 

 

 

 

 

 

 

 

 

 

INTRODUCTION

This digest covers our financial audit of the System for the year ended June 30, 2003. A compliance audit covering the year ending June 30, 2003 is being issued separately.

The System shares administrative staff and common administrative expenses with the General Assembly Retirement System (GARS). The GARS reimburses the System for 40 percent of the administrative costs incurred.

It should be noted that, pursuant to the Illinois Pension Code, the Illinois State Board of Investment manages the investments of the System.

 

UNDERFUNDING OF THE SYSTEM

The actuarial accrued liability was valued at $1,076 million at June 30, 2003. The actuarial value of assets (at fair value) totaled approximately $330 million at June 30, 2003. The difference between the liability and the assets of $746 million reflects the unfunded liability of the System at June 30, 2003. The Judgesí Retirement System had a funded ratio of 30.7% at June 30, 2003.

 

SUBSEQUENT EVENT

On April 7, 2003, Governor Rod Blagojevich signed House Bill 2660 into law as Public Act 93-0002. This new law authorized the State of Illinois to issue $10 billion of General Obligation Bonds for the purpose of making contributions to designated retirement systems. The Judges Retirement System is one of the designated retirement systems.

The Judges Retirement System received an allocation of bond proceeds equal to $141,955,483 on July 1, 2003. The monies were deposited into its Master Trust account with the Illinois State Board of Investments, on July 2, 2003.

 

AUDITORS' OPINION

Our auditors state that the June 30, 2003 financial statements of the System are fairly presented.

 

 

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:RPU:pp

 

SPECIAL ASSISTANT AUDITORS

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