TEACHERS RETIREMENT SYSTEM
For the Year Ended:
State of Illinois
Office of the Auditor General
WILLIAM G. HOLLAND
To obtain a copy of the Report contact:
(217)782-6046 or TDD (217) 524-4646
This Report Digest is also available on
Unfunded Liability at June 30, 2002 totals $20,682 million
$1,221 million decrease in the investment portfolio from June 30, 2002 to October 31, 2002
This digest covers our financial audit of the System for the year ended June 30, 2002. A compliance audit covering the year ending June 30, 2002 will be issued separately.
UNDERFUNDING OF THE SYSTEM
The actuarial accrued liability was valued at $43,048 million at June 30, 2002. The actuarial value of assets (at market) totaled approximately $22,366 million at June 30, 2002. The difference between the liability and the assets of $20,682 million reflects the unfunded liability of the System at June 30, 2002. The Teachers Retirement System had a funded ratio of 52.0% at June 30, 2002.
MARKET VALUE DECLINE
The System had a decline in its investment portfolio subsequent to June 30, 2002. As of October 31, 2002 the System had incurred an approximate $1,221 million (4.9%) decrease in its investment portfolio since June 30, 2002.
NEW ACCOUNTING PRONOUNCEMENTS
The System adopted Government Auditing Standard Board (GASB) Statements 34, 37 & 38. The adoption of these standards, effective July 1, 2001, had no impact on the Systems financial statements or its net assets. As a result of the adoption of these standards the System now presents a section on Managements Discussion and Analysis which precedes the financial statements.
Our auditors state the June 30, 2002 financial statements of the System are fairly presented in all material respects.
WILLIAM G. HOLLAND, Auditor General
SPECIAL ASSISTANT AUDITORS
McGladrey & Pullen LLP were our special assistant auditors for this audit.