REPORT DIGEST

 

STATE UNIVERSITIES RETIREMENT SYSTEM

 

 

 

 

FINANCIAL AUDIT

For the Year Ended:

June 30, 2004

 

Release Date:

February 2, 2005

 

 

 

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 is also available on

the worldwide web at

http://www.state.il.us/auditor

 

 

 

 

 

 

 

 

SYNOPSIS

 

 

®      The unfunded liability of the System was $6,492 million at June 30, 2004.The Systemís funded ratio at that date was 66%.

 

®      Approximately $1.4 billion of bond proceeds were deposited in the System's 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 of General Obligation bonds for the purpose of making contributions to designated retirement systems.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 


Unfunded Liability at June 30, 2004 totals $6,492 million

 

 

 

 

 

 

 

$1.4 billion of bond proceeds deposited in System's investment account on July 2, 2003

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTRODUCTION

 

††††† This digest covers our financial audit of the System for the year ended June 30, 2004.A compliance examination report covering the year ending June 30, 2004 will be issued separately.

†††††

UNDERFUNDING OF THE SYSTEM

 

††††† The actuarial accrued liability was valued at $19,078 million at June 30, 2004.The actuarial value of assets (at market) totaled approximately $12,586 million at June 30, 2004.The difference between the liability and the assets of $6,492 million reflects the unfunded liability of the System at June 30, 2004.The State Universities Retirement System had a funded ratio of 66% at June 30, 2004.

 

PENSION BOND FUNDING

 

††††† In fiscal year 2003, Governor Rod Blagojevich and the General Assembly agreed to issue $10 billion of General Obligation Bonds for the purpose of making contributions to designated retirement systems.The State Universities Retirement System was one of the designated retirement systems.

 

††††† The State Universities Retirement System received an allocation of bond proceeds equal to $1,431,994,224 on July 1, 2003.The monies were deposited into its Master Trust account with The Northern Trust on July 2, 2003.

 

AUDITORS' OPINION

 

††††† Our auditors state the June 30, 2004 financial statements of the System are fairly presented in all material respects.

 

 

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

 

WGH:KMA:pp

 

SPECIAL ASSISTANT AUDITORS

 

††††† BKD, LLP were our special assistant auditors for this audit.