Thursday, March 3, 2011

Illinois Auditor General’s Report on Retirements

For the years ending June 30, 2009, and June 30, 2010 According to figures provided by the retirement systems, the cumulative unfunded actuarial accrued liability for the five State financed retirement systems as of June 30, 2010 was $75.7 billion when using the “smoothed” valuation of assets. The unfunded actuarial accrued liability increased $13.3 billion (21.3%) during FY2010 when using this method. Pursuant to Public Act 96-0043,during FY2009 the State changed from valuing retirement system assets for actuarial purposes from fair value for the calculation of annual required contributions to a methodology which “smoothes” gains or losses incurred during a fiscal year in equal amounts over a five year period, beginning with the year the gains or losses were first incurred. When using the fair value of assets, the unfunded accrued liability increased $7.7 billion (9.9%) during FY2010.

Click on the photocopy to enlarge:

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Click on the following to read the entire report:  http://www.auditor.illinois.gov/Audit-Reports/Compliance-Agency-List/Retirement-Systems/RetSysSuppDig/FY10-RetSysSuppDigest.pdf

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