REPORT DIGEST

STATE UNIVERSITIES RETIREMENT SYSTEM

FINANCIAL AUDIT
FOR THE YEAR ENDED: JUNE 30, 2012



Release Date:   January 16, 2013


Summary of Findings:
Total this audit: 0
Total last audit:  0
Repeated from last audit: 0

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 Full Report are also available on
the worldwide web at www.auditor.illinois.gov

INTRODUCTION

This digest covers our financial audit of the System for
the year ended June 30, 2012.  A compliance examination
report covering the year ending June 30, 2012 will be
issued separately.

FUNDED RATIO

The actuarial accrued liability was valued at $33.1
billion at June 30, 2012.  The actuarial value of assets
(at smoothed value) totaled approximately $13.9 billion
at June 30, 2012.  The method for determining the
actuarial value of assets was changed beginning with the
June 30, 2009 valuation.  The method was changed from
the market value to a smoothed value where the actuarial
gains or losses for each year are recognized in equal
amounts over the ensuing five-year period.

The difference between the actuarial accrued liability
and the actuarial value of assets of $19.2 billion
reflects the unfunded liability of the System at June
30, 2012.  The System had a funded ratio (at smoothed
value) of 42.1% at June 30, 2012.  When using the market
value, the System would have a funded ratio of 41.3%.

AUDITORS’ OPINION

Our auditors state the June 30, 2012 financial
statements of the State Universities Retirement System
are presented fairly in all material respects.


WILLIAM G. HOLLAND
Auditor General

WGH:TLK

SPECIAL ASSISTANT AUDITORS

McGladrey LLP was our Special Assistant Auditors for
this engagement.