WILLIAM G. HOLLAND
Iles Park Plaza
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|Unfunded Liability at June 30, 1998 Totals $390 million||
This digest covers our financial audit of the System for the year ended June 30, 1998. A compliance audit covering the year ending June 30, 1998 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, investments of the System are managed by the Illinois State Board of Investment.
UNDERFUNDING OF THE SYSTEM
The actuarial accrued liability was valued at $747 million at June 30, 1998. The actuarial value of assets (at market) totaled approximately $357 million at June 30, 1998. The difference between the liability and the assets of $390 million reflects the unfunded liability of the System at June 30, 1998. The Judges' Retirement System had a funded ratio of 47.7% at June 30, 1998.
Our auditors state that the June 30, 1998 financial statements of the System are fairly presented.
SPECIAL ASSISTANT AUDITORS
McGladrey & Pullen, LLP were our special assistant auditors for this audit.