News

News

State Retirement Systems Overview

CGFA staff has reviewed the State-funded retirement systems’ FY 2018 actuarial reports, which were issued prior
to November 1st, pursuant to P.A. 97-0694, the State Actuary Law. Under the State Actuary Law, the systems must annually submit a proposed certification for the following fiscal year prior to November 1st of the current calendar year. The State Actuary then must issue a
preliminary report concerning the systems’ proposed certification by January 1st. The State Actuary’s report must identify any recommended changes in actuarial assumptions based upon the review of the retirement systems’ actuarial assumptions.
Using the actuarial (smoothed) value of assets, the total unfunded liabilities of the State systems totaled $133.7 billion on June 30, 2018, led by the Teachers’ Retirement System (TRS), whose unfunded liabilities amounted to $75.3 billion. As the largest of the State systems, TRS accounts for approximately 56.3% of the total assets and liabilities of the five State systems combined. The State Employees’
Retirement System (SERS) had unfunded liabilities of $30.4 billion, approximately 22.8% of the total unfunded liabilities of the five systems, followed by the State Universities Retirement System (SURS) with unfunded liabilities of $25.9 billion, which represents 19.4% of the total unfunded liabilities. Table 1, on the following page, provides a summary of the financial condition of each of the five State
retirement systems, showing their respective liabilities and assets as well as their accumulated unfunded liabilities and funded ratios.

Full Article

Read more

KKR, Blackstone lose bid to dismiss Kentucky pension lawsuit

KKR, Blackstone Group and the firms’ founders must face a lawsuit alleging they failed to deliver hedge fund returns as advertised, a judge in Kentucky ruled Nov. 30 in a decision that might present new legal challenges for managers of alternative investments.
The lawsuit, filed in December 2017, claims large asset managers misrepresented expensive and risky “black-box” bundles of hedge funds as safe ways to generate high returns. The suit was filed on behalf of the $12.3 billion Kentucky Retirement Systems and state taxpayers. The plaintiffs group includes a sitting judge, a retired state trooper and a firefighter.

Full Article

Read more

State and Local Public Plans Database

The Public Plans Database (PPD) currently contains plan-level data from 2001 through 2017 for 180 pension plans: 114 administered at a state level and 66 administered locally.  This sample covers 95 percent of public pension membership and assets nationwide.  The sample of plans is a carry-over from the Public Fund Survey (PFS), which was constructed with an eye toward the largest state-administered plans in each state, but also includes some large local plans such as New York City ERS and Chicago Teachers.

The PPD is updated each spring from data available in the most recent Comprehensive Annual Financial Reports (CAFRs) and Actuarial Valuations (AVs). Intermediate updates may occur when new variables are added or data errors are corrected.

To conduct an in-depth analysis requiring full access to the database, download the full PPD.

Full Article

Read more
Top