REPORT DIGEST
TEACHERS’ RETIREMENT
SYSTEM OF THE STATE OF ILLINOIS
COMPLIANCE EXAMINATION For the Year Ended: June 30, 2007 Summary of Findings: Total this year -Financial Audit 0 -Compliance Examination 0 Total last year -Financial Audit 0 -Compliance Examination 0 Repeated from last year -Financial Audit 0 -Compliance Examination 0 Release Date: April 30, 2008
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 www.auditor.illinois.gov |
INTRODUCTION This
digest covers our compliance attestation examination of the Teachers’
Retirement System (System) for the year ended June 30, 2007. A financial
audit covering the year ending June 30, 2007 was issued separately. There
were no report findings of noncompliance identified during our testing. FUNDING LEGISLATION
In June 2005, Public Act 94-0004 became
law. This legislation modified the
funding plan of the System by reducing the amount of required employer
(State) contributions for fiscal years 2006 and 2007 that would have
otherwise been required under the previous funding legislation. State required contributions will be
higher in future years to make up for the two-year funding reduction.
ACCOUNTANTS’ REPORT We conducted a compliance attestation
examination of the System for the year ended June 30, 2007 as required by the
Illinois State Auditing Act. The
accountants’ report does not contain any scope limitations, disclaimers or
other significant non-standard language. _____________________________________ WILLIAM
G. HOLLAND, Auditor General WGH:RPU:pp SPECIAL ASSISTANT AUDITORS
BKD LLP were our special assistant auditors for this engagement. {Financial Data and Supplementary Information are summarized on the reverse page.} |
TEACHERS' RETIREMENT SYSTEM OF ILLINOIS
COMPLIANCE
EXAMINATION
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OPERATING STATEMENT ANALYSIS |
FY 2007 |
FY 2006 |
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REVENUES: Contributions -
Members..................................................... Contributions - State of Illinois........................................ Contributions - School Districts.......................................
Total Contributions......................................................... Investment Income - Appreciation in Fair
Value........... Investment Income - Income From
Investments............ Total Investment Income................................................
Investment Expense...........................................................
Total Revenues................................................................ EXPENSES: Benefits...................................................................................
Refunds................................................................................
Administrative Expenses....................................................
Total Expenses.................................................................. Revenue over Expenses.................................................... |
$ 826,249,007 737,670,628 115,915,040 $1,679,834,675
$5,597,334,135 1,384,916,220 $6,982,250,355 150,925,919 $8,511,159,111 $3,111,752,675 59,731,909 15,246,203 $3,186,730,787 $5,324,428,324 |
$ 799,034,336 534,305,256 123,542,608 $1,456,882,200
$2,971,529,661 1,153,956,504 $4,125,486,165 132,196,285 $5,450,172,080 $2,877,230,697 57,967,063 15,303,370 $2,950,501,130 $2,499,670,950 |
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SCHEDULE OF INVESTMENT PORTFOLIO - Fair Value |
JUNE 30, 2007 |
JUNE 30, 2006 |
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Equities: Common Stocks, U.S. Equities......................................... Common Stocks, Non - U.S.
Equities ............................ Preferred Stocks, U.S. Equities
...................................... Preferred Stocks, Non - U.S.
Equities............................ Total Equities............................................................ Fixed Income:
U.S. Government, U.S. Treasuries................................... U.S. Government, Federal
Agencies.............................. U.S. Government, Municipals
(taxable)......................... U.S. Government, Index Linked
Bonds.......................... U.S. Government, Backed
Mortgages........................... U.S. Corporate: Asset Backed
Securities...................... U.S. Corporate: Mortgage Backed
Securities............... U.S. Corporate: Collateralized
Mortgage Obligations. U.S. Corporate: Commingled /
Closed End Funds....... U.S. Corporate: Convertible
Bonds................................ U.S. Corporate: Credit
Obligations................................. International Notes and Bonds...................................... Total Fixed Income................................................... Short Term Investments.............................................................................. Derivatives: Options, Futures
and Swaps................................................ Real Estate..................................................................................................... Private Equity............................................................................................... Absolute Return........................................................................................... Foreign Currency......................................................................................... TOTAL
INVESTMENTS....................................................................... |
$13,908,176,627 9,360,153,385 33,817,240 185,832,865 $23,487,980,117 513,731,037 1,217,042,065 301,251 449,648,751 3,192,471,823 536,240,991 493,727,355 848,151,787 39,010,178 4,492,094 1,945,687,488 900,493,848 $10,140,998,668 1,474,343,766 847,479 4,693,519,131 1,894,311,762 490,000,000
49,081,933 $42,231,082,856 |
$12,575,262,796 7,244,296,966 37,767,710 174,064,874 $20,031,392,346 1,433,704,715 1,612,335,642 11,619,751 263,914,841 2,818,412,775 721,905,881 527,255,346 781,486,169 77,089,595 2,945,437 1,633,589,444 656,883,773 $10,541,143,369 1,526,228,488 (13,134,647) 3,946,280,351 1,513,997,646 0
34,040,496 $37,579,948,049 |
iNVESTMENTS USED
FOR Benefits and Expenses
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FY 2007 |
FY 2006 |
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DEDUCTIONS:
Benefits..................................................................... Refunds.................................................................... Administration........................................................ Total Deductions (2)...................................... Investments used to Pay Benefits and Expenses (1)-(2).......................... |
$ 1,679,834,675
$
3,111,752,675 59,731,909 15,246,203 $ 3,186,730,787 $(1,506,896,112) |
$
1,456,882,200 $ 2,877,230,697 57,967,063 15,303,370 $ 2,950,501,130 $(1,493,618,930) |
SUPPLEMENTARY
INFORMATION
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FY 2007
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FY 2006
|
|
Total time weighted return on investments
(unaudited)........................ New Age Retirement Claims Processed (unaudited).............................. Number of Retirement Annuitants............................................................ Average Monthly Benefit for Retirement Annuitants........................... New Survivor Annuitant Claims Processed (unaudited)....................... Number of Survivor Annuitants................................................................ Average Monthly Benefit for Survivor Annuitants............................... Value of General Obligation Bond, Pension Series 2003 investments. |
19.2% 5,509 79,728 $3,344 646 8,447 $1,196 $6,150,127,638 |
11.8% 4,396 75,747 $3,173 698 8,320 $1,127 $5,444,473,959 |
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EXECUTIVE DIRECTOR |
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During Engagement Period: Jon Bauman Currently:
Jon Bauman |
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