Comprehensive annual financial report fiscal year ended June 30, 2015

2015 Employees' Retirement System of Georgia Comprehensive Annual Financial Report

ERS

GMPF

GJRS

ERSGA

LRS

PSR

GDCP

PSERS

Fiscal Year Ended June 30, 2015
A component unit of the State of Georgia

E RSGA
Employees' Retirement System of Georgia
Serving those who serve Georgia

Our Mission
Our mission is to be guardian of the retirement plans on behalf of the State of Georgia for the ultimate benefit of the members, retirees and beneficiaries.
Our vision is to use our passion for excellence to become the"Best Managed"retirement system in the country, utilizing stateof-the-art technology, and knowledgeable, customer-focused staff to best serve customers and to protect the retirement system for all of our current and future members.
Our Values
Our Core Values are:
Quality execution Accurate results Continuous improvement Knowledgeable and customer focused staff Sound and secure investment of funds

E RSGA

Serving those who serve Georgia

Employees' Retirement System of Georgia

Employees' Retirement System of Georgia
Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2015

ERS

GMPF

GJRS

ERSGA

LRS

PSR

GDCP

PSERS

James A. Potvin Executive Director
A component unit of the State of Georgia

E RSGA
Employees' Retirement System of Georgia
Serving those who serve Georgia

Table of Contents

Introductory Section

Boards of Trustees

4

Letter of Transmittal

5

Certificate of Achievement for Excellence in Financial Reporting

7

PPCC Recognition Award for Funding

8

Administrative Staff and Organization

9

Organizational Chart

10

Financial Section

Independent Auditors'Report

12

Management's Discussion and Analysis (Unaudited)

14

Basic Financial Statements:

Combining Statement of Fiduciary Net Position as of June 30, 2015

19

Defined Benefit Plans-Combining Statement of Fiduciary Net Position

as of June 30, 2015

20

Combining Statement of Changes in Fiduciary Net Position

for the Year Ended June 30, 2015

21

Defined Benefit Plans-Combining Statement of Changes in Fiduciary Net

Position for the Year Ended June 30, 2015

22

Notes to Financial Statements

23

Required Supplementary Information (Unaudited)

Defined Benefit Pension Plans:

Schedules of Employers' and Nonemployers' Contributions

43

Schedules of Employers' and Nonemployers' Net Pension Liability

45

Schedules of Changes in Employers' and Nonemployers' Net

Pension Liability

46

Schedule of Investment Returns

49

Defined Benefit OPEB Plans

Schedules of Funding Progress

50

Schedules of Employer Contributions

51

Notes to Required Supplementary Information (Unaudited)

52

Additional Information

Schedule of Administrative Expenses - Contributions and Expenses 55

Schedule of Investment Expenses

56

Investment Section

Investment Overview

58

Pooled Investment Fund/Rates of Return

59

Asset Allocation/Investment Summary

60

Schedule of Fees and Commissions/Twenty Largest Equity Holdings 61

Fixed Income Holdings

62

Actuarial Section

Actuary's Certification Letters

64

Summary of Plan Provisions

71

Summary of Actuarial Assumptions

72

Active Members

83

Member and Employer Contribution Rates

85

Defined Benefit Pension Plans

Schedules of Funding Progress

87

Schedule of Retirees Added to and Removed from Rolls

89

Analysis of Change in Unfunded Accrued Liability (UAL)

91

Solvency Test Results

94

Statistical Section

Introduction

98

Additions by Source - Contribution/Investment Income

99

Deductions by Type

102

Changes in Fiduciary Net Position

106

Number of Retirees

108

Average Monthly Payments to Retirees

109

Annual Benefit

110

Withdrawal Statistics

111

Average Monthly Benefit Payment for New Retirees

112

Retired Members by Retirement Type

117

Retired Members by Optional Form of Benefit

119

Top Participatory Employers

122

Statistical Data at June 30, 2015

124

Introductory Section

ERS

GMPF

GJRS

ERSGA

LRS

PSR

GDCP

PSERS

E RSGA
Employees' Retirement System of Georgia
Serving those who serve Georgia

Introductory
Boards of Trustees
Employees'Retirement System, Legislative Retirement System, Georgia Defined Contribution Plan, and Georgia Military Pension Fund

Lonice Barrett Chair

Sid Johnson Vice-Chair

Harold Reheis

Frank F. Thach, Jr.

Steven N. McCoy Public School Employees Retirement System*

Greg S. Griffin

Eli P. Niepoky State Employees'Assurance Department**

Michael Lowe Georgia Judicial Retirement System*

Richard Taylor

Mark Butler

H. Phillip Bell

Daniel J. Craig

Ron Mullins

E. Trenton Brown III

*The PSERS and GJRS boards are comprised of the members of the ERS board and additional members shown under each plan. **SEAD -- ERS Board Members Greg S. Griffin, Steven N. McCoy, Lonice Barrett, and Sid Johnson serve in addition to the two members shown above.
4

Introductory

E RSGA

Serving those who serve Georgia

Employees' Retirement System of Georgia

Letter of Transmittal

Two Northside 75 Atlanta, GA 30318

December 21, 2015

I am pleased to present the Comprehensive Annual Financial Report for the fiscal year ended June 30, 2015 of the retirement systems and programs administered by the Employees' Retirement System of Georgia (the System). The management of the System is responsible for the accuracy, completeness and fairness of the presentation, including all disclosures. It is to the best of our knowledge and belief that the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the System.
Profile of the System
The Employees'Retirement System of Georgia was established to provide benefits for all State employees in 1949. Plans administered by the System include the Employees' Retirement System (ERS), the Legislative Retirement System (LRS) established in 1979, the Public School Employees Retirement System (PSERS) established in 1969, the Georgia Defined Contribution Plan (GDCP) established in 1992, the Georgia Judicial Retirement System (GJRS) established in 1998, and the Georgia Military Pension Fund (GMPF) established in 2002. In addition, the Board of Trustees is responsible for a Group Term Life Insurance Plan (SEAD), the 457 Plan established in 1974 and the 401(k) Plan established in 1994. A summary of each plan can be found on pages 23 through 30 of this report. The investments of all plans are pooled together into one fund except for the three defined contribution (DC) plans, which are maintained individually.
The ERS, LRS, GDCP, GMPF, 401(k) and 457 plans are administered by a 7-member Board made up of 3 ex-officio members, 1 governor-appointed member, and 3 Board-appointed members. PSERS has the same Board as ERS with 2 additional governor-appointed members. GJRS has the same Board as ERS with 3 additional governor-appointed members.
As of June 30, 2015, the System's defined benefit (DB) plans served a total of 125,294 active members and 65,591 retirees/beneficiaries from 898 employers around the state. There were 51,550 participants in the 401(k) plan with a total account balance of $616 million. The 457 plan had 13,135 participants with a balance of $576 million. There are 488 participating employers from around the state in the 457 and 401(k) plans.
Legislation
In the 2015 Session, one bill was passed by the General Assembly and signed by the Governor that could impact ERS and its Systems. Act 126 allows all retirement systems under Title 47 to invest in mutual funds and commingled funds.
The following fiscal retirement bills potentially affecting ERS and its Systems were introduced in the 2015 Session. In accordance with Georgia law, they were forwarded for actuarial study by the House and Senate Retirement Committees, and will be considered for passage during the 2016 Session.

HB 421 is a companion bill to HB 310, which creates a new Department of Community Supervision. Certain employees of the new Department will remain eligible for enhanced disability benefits once transferred. Certain employees of the new Department currently not eligible for enhanced disability benefits would become eligible upon passage.
HB 508 changes the normal retirement age for Appellate Court Judges eligible to receive pension benefits from age 65 to age 60.
HB 605 changes the vesting requirements for judges moving from part-time to full-time service and allows for a proportional calculation of benefits upon transfer to full-time service and subsequent retirement.
HB 687 allows any JRS member who was previously an active memeber of ERS to transfer service to JRS.
HB 690 allows certain law enforcement members to purchase up to five years of certain local government authority service by paying full actuarial cost.
SB 149 allows members with at least two years of ERS service to purchase up to five years of military service performed on or after January 1, 1990.
SB 243 allows Legislative Counsel employees to choose to become JRS members by December 31, 2016 or within 90 days of employment.
Summary of Financial Information
The Management of the System is charged with the responsibility of maintaining a sound system of internal accounting controls. The objectives of such a system are to provide management with reasonable assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorizations, and that they are recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. The concept of reasonable assurance recognizes that first, the cost of a control should not exceed the benefits likely to be derived, and second, the evaluation of the cost and benefits requires estimates and judgments by management.
Even though there are inherent limitations in any system of internal control, the management of the System makes every effort to ensure that through systematic reporting and internal reviews, errors or fraud would be quickly detected and corrected.
Please refer to the Management's Discussion and Analysis starting on page 14 of this report for an overview of the financial status of the System, including a summary of the System's Fiduciary Net Position, Changes in Fiduciary Net Position, and Asset Allocations.

5

Introductory

In FY2015, the pooled fund generated a return of 3.7%. The fund continues to invest in a mix of high-quality bonds and stocks which allows the System to participate in rising markets while controlling the downside risks. This has proven to be a successful strategy for other markets and for our System. For further information on investments of the pooled fund, please refer to pages 58 through 62 of this report.
The objective of ERS pension trust funds is to meet long-term benefit promises through contributions that remain approximately level as a percent of member payroll over time while maintaining an actuarially sound system. Historical information relating to the progress in meeting this objective is presented on pages 50, 87, and 88. The latest actuarial valuations as of June 30, 2014 showed the funded ratio of all five defined benefit plans increasing. The following table shows the change in funding percentage for each of the pension systems:

ERS PSERS LRS GJRS GMPF

FY2013 71.4% 79.9% 118.4%
104.8% 40.4%

FY2014 72.8% 82.8%
122.6% 108.8%
44.8%

Further information regarding the funding condition of the pension plans can be found in the Actuarial Section of this report.

Excellence in Financial Reporting
For the fifth consecutive year, the Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Employees'Retirement System of Georgia for its comprehensive annual financial report for the fiscal year ended June 30, 2014. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate.

Initiatives
In FY2015, ERS completed a number of projects, with particular emphasis on Governmental Accounting Standards Board (GASB) compliance, the Peach State Reserves program, member education, and technology infrastructure.

Peach State Reserves and Member Education More than 40% of our active population in the ERS plan are members of the current tier, known as the Georgia State Employees' Pension and Savings program (GSEPS). As a result of their automatic enrollment into the 401(k) plan upon hire, the 401(k) plan is adding nearly 5,000 net accounts per year. In 2014, new legislation increased the default employee savings rate to 5% of pay, and 48% of the active GSEPS members are saving at least that much (up from 23% just a year ago). In anticipation of continued growth in the number and size of accounts, we have taken a number of steps to help members with the responsibility of managing their accounts.
First, we overhauled our new-hire communication tools. Our initial letters now combine information about both their DB and DC plans in a single place. While we still have separate websites for each type of plan, we made changes designed to make their initial registration more turn-key. Further, we created multiple new videos and a new hire webinar to provide overviews of the plans.
Finally, we are very pleased at the response to our rollout of a new series of financial literacy seminars. The four seminars are designed to improve general financial knowledge, geared toward the various stages of life and/or career, while mixing in information about how our retirement and benefit programs support our members' needs at the different stages. We delivered 68 live seminars in the first 12 months to groups of approximately 20 people. They were so well-received that we have had employers asking us to repeat the sessions.
Technology We kept our IT department busy this year, as always, with hundreds of work items and minor enhancement requests. The development group also provided postlive-date support to a number of new system modules and laid the groundwork for key online functional enhancements to be added over the next year or so. In addition, the operations group upgraded network speed and capacity and implemented a new backup solution providing faster, more reliable data transmission to our backup facility.
Acknowledgements
This report reflects the combined effort of our staff under the Board's leadership. Copies of this report, along with other valuable plan information, can be downloaded from the System's website.
I would like to express my sincere thanks to the Boards of Trustees for their leadership and support. Many thanks are also extended to the offices of the Governor, Lieutenant Governor, members of the House and Senate Retirement Committees and their staff, members of the House and Senate, and the department officials whose support and assistance have helped ERS accomplish its mission over the years.
Respectfully submitted,

GASB Following on the heels of last year's implementation of the GASB Statement No. 67 plan-level reporting standards, in FY 2015 we completed our part in the implementation of GASB Statement No. 68 employer reporting requirements. ERS participated on the statewide GASB Steering Committee, which analyzed the new requirements and coordinated the creation of procedures by which we will provide relevant information for our employers and the State to complete their financial reporting for FY 2015 and future years. We further worked with our actuaries and auditors to develop standardized employer information packages and establish audit timing and procedures for the information prior to distribution.

James A. Potvin, Executive Director Employees' Retirement System of Georgia
6

Introductory
7

Introductory
P P CC
Public Pension Coordinating Council Recognition Award for Funding
2015
Presented to
Employees' Retirement System of Georgia
In recognition of meeting professional standards for plan funding as
set forth in the Public Pension Standards.
Presented by the Public Pension Coordinating Council, a confederation of National Association of State Retirement Administrators (NASRA)
National Conference on Public Employee Retirement Systems (NCPERS) National Council on Teacher Retirement (NCTR)
Alan H. Winkle Program Administrator
8

Introductory

Administrative Staff and Organization

James A. Potvin Executive Director

Carlton Lenoir Deputy Director

Charles W. Cary, Jr. CIO - Investment Services

Laura L. Lanier Controller

Chris Hackett Director
Information Technology

Nicole Paisant Director
Human Resources

Susan Anderson Chief Operating
Officer

Angie Surface Director
Peach State Reserves Quality Assurance

Consulting Services
Cavanaugh Macdonald Consulting, LLC - Actuary KPMG LLP - Auditor JPMorgan Chase Bank, N. A. - Defined Contribution
Custodian Aon Hewitt - Defined Contribution Consultant and Administrator
Investment Advisors*
Albritton Capital Management Baillie Gifford Overseas Limited Barrow, Hanley, Mewhinney & Strauss Cooke & Bieler Fisher Investments Mondrian Investment Partners Limited Sands Capital Management

Medical Advisors
Harold E. Sours, M.D., Atlanta, GA G. Lee Cross, M.D., Atlanta, GA Douglas Smith, M.D., Smyrna, GA William H. Biggers, M.D., Atlanta, GA Pedro F. Garcia, M.D., Atlanta, GA H. Rudolph Warren, M.D., Dunwoody, GA Quinton Pirkle, M.D., Atlanta, GA Marvin Bittinger, M.D., Gainesville, GA Joseph S. Wilkes, M.D., Atlanta, GA

*See page 61 in the Investment Section for a summary of fees paid to Investment Advisors.

9

Introductory

Organizational Chart

Board of Trustees
Executive Director

Executive Support

Deputy Director

Chief Operating
Officer

Investment Services Division

Accounting Division

Financial Management
Division

Member Services Division

Office Administration

Information Technology
Division

Peach State Reserves

Quality Assurance

10

Financial Section

ERS

GMPF

GJRS

ERSGA

LRS

PSR

GDCP

PSERS

E RSGA
Employees' Retirement System of Georgia
Serving those who serve Georgia

Financial

Independent Auditors' Report

KPMG LLP Suite 2000 303 Peachtree Street, NE Atlanta, GA 30308-3210

The Board of Trustees Employees' Retirement System of Georgia:

Report on the Financial Statements We have audited the accompanying financial statements of the Employees' Retirement System of Georgia (the System), a component unit of the State of Georgia, as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the System's basic financial statements, as listed in the table of contents.
Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

Report on Summarized Comparative Information We have previously audited the System's 2014 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated October 31, 2014. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2014 is consistent, in all material respects, with the audited financial statement from which it has been derived.
Other Matters Required Supplementary Information U.S. generally accepted accounting principles require that the management's discussion and analysis, schedules of employers' and nonemployers' contributions, schedules of employers'and nonemployers'net pension liability, schedules of changes in employers' and nonemployers' net pension liability, schedule of investment returns, schedules of funding progress and schedules of employer contributions on pages 1418 and 4351 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary and Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the System's basic financial statements. The schedules of administrative expenses and investment expenses, introductory, investment, actuarial, and statistical sections are presented for purposes of additional analysis and are not a required part of the basic financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the fiduciary net position of the System as of June 30, 2015, and the changes in fiduciary net position for the year then ended in accordance with U.S. generally accepted accounting principles.

The schedules of administrative expenses and investment expenses are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedules of administrative expenses and investment expenses are fairly stated in all material respects in relation to the basic financial statements as a whole.

12

Financial
The introductory, investment, actuarial, and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated September 30, 2015 on our consideration of the System's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the System's internal control over financial reporting and compliance. December 21, 2015
13

Financial
Management's Discussion and Analysis (Unaudited)
June 30, 2015
This section provides a discussion and analysis of the financial performance of the Employees'Retirement System of Georgia (the System) for the year ended June 30, 2015. The discussion and analysis of the System's financial performance is within the context of the accompanying basic financial statements, notes to the financial statements, required supplementary schedules, and additional information following this section.
The System is responsible for administering a cost-sharing, multiple-employer defined benefit pension plan for various employer agencies of Georgia, along with six other defined benefit pension plans, three defined benefit OPEB plans and funds, and three defined contribution plans.
The defined benefit pension plans include:
Employees'Retirement System (ERS) Public School Employees Retirement System (PSERS) Legislative Retirement System (LRS) Georgia Judicial Retirement System (GJRS) Georgia Military Pension Fund (GMPF) Superior Court Judges Retirement Fund (SCJRF) District Attorneys Retirement Fund (DARF)
The defined benefit OPEB plans and funds include:
State Employees'Assurance Department Active Members Trust Fund (SEAD-Active) State Employees'Assurance Department Retired and Vested Inactive Members Trust Fund (SEAD-OPEB) Survivors Benefit Fund (SBF)
The defined contribution retirement plans include:
Georgia Defined Contribution Plan (GDCP) State of Georgia Employees'Deferred Compensation Plan (401(k) Plan) State of Georgia Employees'Deferred Compensation Plan (457 Plan)
Financial Highlights
The following highlights are discussed in more detail later in this analysis:
The net position of the System decreased by $308.8 million, or 1.8%, from $17.3 billion at June 30, 2014 to $17.0 billion at June 30, 2015. The decrease in net position from 2014 to 2015 was due to total deductions exceeding investment income for the year.
For the year ended June 30, 2015, the total additions to net position were $1.3 billion compared to $3.2 billion for the year ended June 30, 2014. For the year ended June 30, 2015, the additions consisted of employer, nonemployer contributing entities (nonemployer), and member contributions totaling $718.6 million, insurance premiums of $4.8 million, net investment income of $609.6 million, and participant fees of $1.3 million.
Net investment income of $609.6 million in 2015 (comprised of interest and dividend income, the change in fair value of investments, and other, reduced by investment expenses) represents a $2.0 billion decrease, compared to the net investment income of $2.6 billion for the year ended June 30, 2014. The net investment income was lower in 2015 compared to 2014 because of lower rates of return in the fixed income and equity markets in 2015.
The total deductions were $1.64 billion and $1.55 billion for the years ended June 30, 2015 and 2014, respectively. For the year ended June 30, 2015, the deductions consisted of benefit payments of $1.56 billion, refunds of $31.0 million, death benefits of $36.9 million, and administrative expenses of $15.6 million.
Benefit payments paid to retirees and beneficiaries had an increase of $86.7 million, or 5.9%, from $1.47 billion in 2014 to $1.56 billion in 2015, resulting primarily from an increase in the number of new retirees and beneficiaries applying for benefits across all plans.

14

(continued)

Financial
Management's Discussion and Analysis (Unaudited)

Overview of the Financial Statements
The basic financial statements include (1) the combining statement of fiduciary net position and changes in fiduciary net position, (2) the defined benefit plans combining statements of fiduciary net position and changes in fiduciary net position, and (3) notes to the financial statements.The System also includes in this report additional information to supplement the financial statements.
In addition, the System presents six types of required supplementary schedules, which provide historical trend information about the plan. The six types of schedules include (1) Schedule of Employers' and Nonemployers' Contributions (2) Schedule of Employers' and Nonemployers' Net Pension Liability (3) Schedule of Changes in Employers' and Nonemployers' Net Pension Liability (4) Schedule of Investment Returns (5) Schedule of Funding Progress and (6) Schedule of Employer Contributions.
The System prepares its financial statements on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles as promulgated by the GASB. These statements provide information about the System's overall financial status.

Description of the Financial Statements

The Combining Statement of Fiduciary Net Position is the statement of financial position presenting information that includes all of the System's assets and liabilities, with the balance representing the Net Position Restricted for Pensions and OPEB. The investments of the System in this statement are presented at fair value. This statement is presented on page 19.

The Combining Statement of Changes in Fiduciary Net Position reports how the System's net position changed during the fiscal year. The additions include contributions to the retirement plans from employers, nonemployers, and members, group life insurance premiums, participant fees, and net investment income, which includes interest and dividends and the net increase in the fair value of investments, net of investment expenses. The deductions include benefit payments, life insurance death benefit payments, refunds of member contributions and interest, and administrative expenses. This statement is presented on page 21.

The Defined Benefit Plans' Combining Statement of Fiduciary Net Position and the Combining Statement of Changes in Fiduciary Net Position present the financial position and changes in financial position for each of the funds administered by the System. These statements are on pages 20 and 22, respectively.

Notes to the Financial Statements are presented to provide the information necessary for a full understanding of the financial statements. The notes to the financial statements begin on page 23.

Required Supplementary Information begins on page 43. The required schedules are discussed as follows: The Schedule of Employers' and Nonemployers' Contributions presents the required contributions and the percent of required contributions actually contributed.

The Schedule of Employers' and Nonemployers' Net Pension Liability presents the components of the net pension liability as of the fiscal year end and the fiduciary net position as a percentage of the total pension liability as of that date. This trend information will be accumulated to display a ten year presentation.

The Schedule of Changes in Employers' and Nonemployers' Net Pension Liability presents total pension liability and is measured as total pension liability less the amount of the fiduciary net position. This trend information will be accumulated to display a ten-year presentation.

The Schedule of Investment Returns presents historical trend information about the annual money-weighted rate of return on plan investments, net of plan investment expense. This trend information will be accumulated to display a ten-year presentation.
Three of the required schedules above, the Schedule of Employers' and Nonemployers' Contributions, the Schedule of Employers' and Nonemployers' Net Pension Liability, and Schedule of Changes in Employers' and Nonemployers' Net Pension Liability are applicable to five of the defined benefit pension plans: ERS, PSERS, LRS, GJRS, and GMPF.

Two additional required schedules, the Schedule of Funding Progress and the Schedule of Employer Contributions relate to defined benefit OPEB plans, which are postemployment benefit plans.The Schedule of Funding Progress presents historical trend information about the actuarially determined funded status of the plans from a long-term, ongoing plan perspective, and the progress made in accumulating sufficient assets to fund benefit payments as they become due. The Schedule of Employer Contributions presents historical trend information about the annual required contributions of employers and percentage of such contributions in relation to actuarially determined requirements for the years presented.

Notes to Required Supplementary Information are presented to provide the information necessary for a full understanding of the supplementary schedules. The notes to required supplementary schedules begin on page 52.

Additional information is presented, beginning on page 55, which includes the Schedule of Administrative Expenses Contributions and Expenses. The Schedule of Administrative

Expenses Contributions and Expenses presents the expenses incurred in the administration of these plans and funds, and the contributions from each plan and fund to provide

for these expenses. On page 56, the Schedule of Investment Expenses summarizes investment advisory and other related costs. 15

(continued)

Financial
Management's Discussion and Analysis (Unaudited)
Financial Analysis of the System
A summary of the System's net position at June 30, 2015 and 2014 is as follows:

Assets: Cash, cash equivalents, and receivables Investments Capital assets, net Total assets
Liabilities: Due to brokers and accounts payable Net position

Net Position (in thousands)

2015

2014

Amount Change

Percentage Change

$

273,602

16,714,722

6,850

16,995,174

384,416 16,917,235
6,797 17,308,448

(110,814) (202,513)
53) (313,274)

(28.8) % (1.2) 0.8) (1.8)

37,251 $ 16,957,923

41,756 17,266,692

(4,505) (308,769)

(10.8) (1.8) %

(continued) 16

Financial
Management's Discussion and Analysis (Unaudited)
The following table presents the investment allocation at June 30, 2015 and 2014:
Asset allocation at June 30 (in percentages): Equities: Domestic International Private equity Domestic obligations: U.S. Treasuries U.S. Agencies Corporate and other bonds International obligations: Governments Corporates Mutual and common collective trust funds and separate accounts
Asset allocation at June 30 (in thousands): Equities: Domestic International Private equity Domestic obligations: U.S. Treasuries U.S. Agencies Corporate and other bonds International obligations: Governments Corporates Mutual and common collective trust funds and separate accounts

2015
48.8 % 16.5
0.3
11.4 0.1 14.2
0.5 1.0 7.2

2014
49.5 % 17.7
0.1
9.3 0.1 14.0
0.5 1.7 7.1

$ 8,161,676
2,753,458 51,767

$ 8,372,234
2,999,387 21,914

1,900,292 10,005
2,382,411

1,573,719 10,028
2,374,957

77,112 173,609 1,204,392
$ 16,714,722

78,652 276,764 1,209,580
$ 16,917,235

The total investment portfolio decreased by $203 million from 2014, which is due to the lower rates of return in the fixed income and equities markets.
GASB Statement No. 67 requires the System to report an annual money-weighted rate of return on plan investments, net of plan investment expense. A money-weighted return is weighted by the amount of dollars in the fund at the beginning and end of the performance period. A money-weighted return is highly influenced by the timing of cash flows into and out of the fund and is a better measure of an entity or person who controls the cash flows into and out of the fund. The nondiscretionary cash flows of the plan, primarily contributions and benefit payments, have a considerable impact on the money-weighted returns of the portfolio. The money-weighted rate of return for the fiscal year ended June 30, 2015 was (5.32)%.
The investment rate of return in fiscal year ended June 30, 2015 was 3.7% with a 4.4% return on equities, a 16.4% return on private equity (inception date of October 3, 2013) and a 2.1% return on fixed income investments. The five-year annualized rate of return on investments at June 30, 2015 was 11.3%, with a 15.3% return on equities and a 3.1% return on fixed income investments.
(continued) 17

Financial
Management's Discussion and Analysis (Unaudited)
A summary of the changes in the System's net position for the year ended June 30, 2015 is as follows (dollars in thousands):

Additions: Employer contributions Nonemployer contributions Member contributions Participant fees Insurance premiums Net investment income Other Total additions
Deductions: Benefit payments Refunds Death benefits Administrative expenses Total deductions Net increase (decrease) in net position

Changes in Net Position (in thousands)

2015

2014

Amount Change

Percentage Change

$ 537,253 42,520
138,871 1,298 4,768
609,626 14
1,334,350

445,214 39,107
126,732 1,122 5,109
2,573,389 7
3,190,680

92,039 3,413
12,139 176 (341)
(1,963,763) 7
(1,856,330)

20.7 % 8.7 9.6
15.7 (6.7) (76.3) 100.0 (58.2)

1,559,551 31,044 36,908 15,616
1,643,119 $ (308,769)

1,472,803 27,044 33,946 14,476
1,548,269 1,642,411

86,748 4,000 2,962 1,140
94,850 (1,951,180)

5.9 14.8
8.7 7.9 6.1 (118.8) %

Additions The System accumulates resources needed to fund benefit payments through contributions and returns on invested funds. In fiscal year 2015, total contributions increased $107.6 million, or 17.6%, primarily because of an increase in the employer contribution rates coupled with modest overall salary increases. Net investment income decreased by $2.0 billion, or 76.3%, because of lower rates of return in the fixed income and equities markets.
Deductions For fiscal year 2015, total deductions increased 6.1%, primarily because of a 5.9% increase in benefit payments. This was due to an increase in the number of retirees receiving benefit payments across all defined benefit pension plans. Refunds increased by 14.8%, which was primarily due to an increase in the number of refunds processed during 2015. Death benefits increased by 8.7%, which was primarily due to an increase in the number of death claims processed during 2015. Administrative expenses increased by 7.9% over the prior year, primarily due to an increase in required employer retirement contributions, contractual services, actuarial services, and professional fees.
Requests for Information
This financial report is designed to provide a general overview of the System's finances for all those with interest in the System's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to Employees' Retirement System of Georgia, Two Northside 75, Suite 300, Atlanta, GA 30318.

18

Financial
Combining Statement of Fiduciary Net Position
June 30, 2015 (with comparative totals as of June 30, 2014) (In thousands)
19

Assets
Cash and cash equivalents
Receivables: Contributions Interest and dividends Due from brokers for securities sold Other Unremitted insurance premiums
Total receivables

Defined Benefit Plans

$

25,983

30,512 -- --
1,549 699
32,760

Investments - at fair value: Domestic obligations: U.S. Treasuries U.S. Agencies Corporate and other bonds International obligations: Governments Corporates Equities: Domestic International Private equity Mutual funds, common collective trust funds, and separate accounts Equity in pooled investment fund
Total investments
Capital assets, net
Total assets

-- -- --
-- --
-- -- --
-- 15,610,530
15,610,530 6,850
15,676,123

Liabilities
Accounts payable and other Due to brokers for securities purchased Insurance premiums payable Due to participating systems

Total liabilities

Net position restricted for pensions

and OPEB

$

23,787 --
699 --
24,486
15,651,637

Pooled Investment
Fund
147,489

Defined Contribution Plans

Georgia Defined Contribution
Plan
16,781

401(k) Plan
28

457 Plan
17

-- 45,807
795 -- --

941

1,938

325

335

--

--

--

--

--

4

687

411

--

--

--

46,602

1,280

2,625

736

1,870,707 --
2,337,433
77,112 173,609
8,161,676 2,753,458
51,767
-- --
15,425,762
15,619,853

29,585 10,005 44,978
-- --
-- -- --
-- --
84,568
102,629



--
626,566
626,566
629,219




577,826
577,826
578,579

1,800 7,523
-- 15,610,530
15,619,853


478 -- -- --
478
102,151

2,758
2,758
626,461

905
905
577,674

Eliminations
(699) (699)



(15,610,530) (15,610,530)
(15,611,229)
(699) (15,610,530) (15,611,229)


Total
2015 190,298

2014 304,344

33,716 46,142
795 2,651
--
83,304

27,784 43,192
7,160 1,936
--
80,072

1,900,292 10,005
2,382,411
77,112 173,609
8,161,676 2,753,458
51,767
1,204,392 --
16,714,722 6,850
16,995,174

1,573,719 10,028
2,374,957
78,652 276,764
8,372,234 2,999,387
21,914
1,209,580 --
16,917,235 6,797
17,308,448

29,728 7,523 -- --
37,251
16,957,923

30,045 11,711
-- --
41,756
17,266,692

See accompanying notes to financial statements.

Financial
Defined Benefit Plans Combining Statement of Fiduciary Net Position
June 30, 2015 (In thousands)
20

Assets
Cash and cash equivalents
Receivables: Contributions Interest and dividends Due from brokers for securities sold Other Unremitted insurance premiums
Total receivables
Investments - at fair value: Domestic obligations: U.S. Treasuries U.S. Agencies Corporate and other bonds International obligations: Governments Corporates Equities: Domestic International Private equity Mutual funds, common collective trust funds, and separate accounts Equity in pooled investment fund
Total investments Capital assets, net
Total assets
Liabilities
Accounts payable and other Due to brokers for securities purchased Insurance premiums payable Due to participating systems
Total liabilities
Net position restricted for pensions and OPEB
See accompanying notes to financial statements.

Employees' Retirement
System

$

24,918

Public School Employees Retirement
System
101

Defined Benefit Pension Plans

Legislative Retirement
System
94

Georgia Judicial Retirement System
529

Georgia Military Pension
Fund
84

Superior Court Judges
Retirement Fund
26

District Attorneys Retirement
Fund
3

Defined Benefit OPEB Plans

State Employees' Assurance Department
Active
58

State Employees' Assurance Department
OPEB
75

Survivors Benefit Fund
95

Defined Benefit Plans Total
25,983

29,908

--

27

577







--

--

--

--







--

--

--

--







1,510

38

1

--







--

--

--

--







31,418

38

28

577









--



--



--



--

83

616

83

616

--

30,512

--

--

--

--

--

1,549

--

699

--

32,760

--

--

--

--







--



--

--

--

--

--

--







--



--

--

--

--

--

--







--



--

--

--

--

--

--







--



--

--

--

--

--

--







--



--

--

--

--

--

--







--



--

--

--

--

--

--







--



--

--

--

--

--

--







--



--

--

--

--

--

--







--



--

--

12,926,975

824,101

32,311

404,378

16,669





240,579

1,046,257

119,260

15,610,530

12,926,975

824,101

32,311

404,378

16,669





240,579

1,046,257

119,260

15,610,530

6,850

















--

6,850

12,990,161

824,240

32,433

405,484

16,753

26

3

240,720

1,046,948

119,355

15,676,123

21,514

1,090

72

618

41

19

1

--

--

--

--







683

--

2

14







--

--

--

--







22,197

1,090

74

632

41

19

1

43

389













43

389

--

23,787

--

--

--

699

--

--

--

24,486

$ 12,967,964

823,150

32,359

404,852

16,712

7

2

240,677

1,046,559

119,355

15,651,637

Financial
Combining Statement of Changes in Fiduciary Net Position
Year ended June 30, 2015 (with comparative totals for the year ended June 30, 2014) (In thousands)
21

Additions: Contributions: Employer Nonemployer Member Participant fees Insurance premiums Administrative expense allotment
Investment income: Net increase (decrease) in fair value of investments Interest and dividends Other Less investment expenses Allocation of investment income Net investment income
Total additions
Deductions: Benefit payments Refunds of member contributions and interest Death benefits Administrative expenses Total deductions
Net increase (decrease) in net position
Net position restricted for pensions and OPEB:
Beginning of year
End of year
See accompanying notes to financial statements.

Defined Benefit Plans

Pooled Investment
Fund

Defined Contribution Plans

Georgia

Defined

Contribution

401(k)

457

Plan

Plan

Plan

Total

2015

2014

$

511,638

42,520

40,901

--

4,768

14

-- -- -- (9,985) 581,629
571,644
1,171,485

1,413,644 8,704
36,908 11,005
1,470,261
(298,776)

15,950,413 $ 15,651,637





25,615







--





15,655

64,870

17,445





1,298







--







--



537,253 42,520
138,871 1,298 4,768 14

239,795 349,403
-- (7,569) (581,629)



(31) 1,410
(53)
1,326
16,981

19,326 -- 547
(2,208) --
17,665
109,448

19,050
766 (825)

18,991
36,436

278,140 350,813
1,313 (20,640)

609,626
1,334,350





95,428

50,479

1,559,551



22,340

--



31,044





--



36,908



990

2,755

866

15,616



23,330

98,183

51,345

1,643,119



(6,349)

11,265

(14,909)

(308,769)



108,500

615,196

592,583

17,266,692



102,151

626,461

577,674

16,957,923

445,214 39,107
126,732 1,122 5,109 7
2,257,437 334,052 1,271 (19,371) --
2,573,389 3,190,680
1,472,803 27,044 33,946 14,476
1,548,269 1,642,411
15,624,281 17,266,692

Financial
Defined Benefit Plans Combining Statement of Changes in Fiduciary Net Position
Year ended June 30, 2015 (In thousands)
22

Additions: Contributions: Employer Nonemployer Member Participant fees Insurance premiums Administrative expense allotment
Investment income : Net increase (decrease) in fair value of investments Interest and dividends Other Less investment expenses Allocation of investment income Net investment income
Total additions
Deductions: Benefit payments Refunds of member contributions and interest Death benefits Administrative expenses
Total deductions
Transfers to (from) other plans
Net increase (decrease) in net position
Net position restricted for pensions and OPEB:
Beginning of year
End of year

Employees' Retirement
System

Defined Benefit Pension Plans

Public School Employees Retirement
System

Legislative Retirement
System

Georgia Judicial Retirement System

Georgia Military Pension
Fund

Superior Court Judges
Retirement Fund

District Attorneys Retirement
Fund

Defined Benefit OPEB Plans

State Employees' Assurance Department
Active

State Employees' Assurance Department
OPEB

Survivors Benefit Fund

Defined Benefit Plans Total

$

505,668

12,495

33,713

--

--

10

-- -- -- (8,934) 483,081
474,147
1,026,033

28,461
1,800
(328) 30,457
30,129
60,390

327
(13) 1,202
1,189
1,516

2,696 1,564 5,061

(159) 14,856
14,697
24,018

1,893
(5) 590
585
2,478

1,312 -- -- -- -- 3
-- -- -- -- --

1,315

69

























581

4,187

1





--

511,638

--

42,520

--

40,901

--



--

4,768

--

14







--









--









--





(55)

(491)

--

(9,985)



8,769

38,367

4,307

581,629



8,714

37,876

4,307

571,644

70

9,295

42,063

4,307

1,171,485

1,334,278 7,450 -- 7,872
1,349,600

(323,567)

56,972 456
1,545
58,973

1,417

1,756 26
169
1,951

(435)

18,365 772 819
19,956

4,062

896
121
1,017

1,461

1,308 -- -- 3
1,311

4

69













3,929

32,979

1

47

428

70

3,976

33,407

--

1,413,644

--

8,704

--

36,908

--

11,005

--

1,470,261





2

(2)





5,319

8,658

4,305

(298,776)

13,291,531

821,733

32,794

400,790

15,251

3

2

235,358

1,037,901

115,050

15,950,413

$ 12,967,964

823,150

32,359

404,852

16,712

7

2

240,677

1,046,559

119,355

15,651,637

See accompanying notes to financial statements.

Financial
Notes to Financial Statements
June 30, 2015

(1) General
The accompanying basic financial statements of the Employees' Retirement System of Georgia, including all plans and funds administered by the Employees' Retirement System of Georgia (collectively, the System), is comprised of the Employees' Retirement System of Georgia (ERS), Public School Employees Retirement System (PSERS), Legislative Retirement System (LRS), Georgia Judicial Retirement System (GJRS), Georgia Military Pension Fund (GMPF), State Employees' Assurance Department Active Members Trust Fund (SEAD-Active), State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEAD-OPEB), Survivors Benefit Fund, Superior Court Judges Retirement Fund (SCJRF), District Attorneys Retirement Fund (DARF), Georgia Defined Contribution Plan (GDCP), State of Georgia Employee's Deferred Compensation Plan (401(k) Plan), and the State of Georgia Employees'Deferred Compensation Plan (457 Plan). All significant accounts and transactions among the various systems, departments, and funds have been eliminated. The Boards of Trustees, comprised of active and retired members, exofficio state employees, and appointees by the Governor, are ultimately responsible for the administration of the System.

(2) Authorizing Legislation and Plan Descriptions

Each plan and fund, including benefit and contribution provisions, was established and can be amended by state law.The following summarizes authorizing legislation and the plan description of each retirement fund:
(a) ERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees and has the powers and privileges of a corporation. There were 423 employers and 1 nonemployer contributing entity participating in the plan during 2015.

Membership As of June 30, 2015, participation in ERS is as follows:
Inactive members and beneficiaries currently receiving benefits Inactive members entitled to benefits but not yet receiving benefits Active plan members
Total

47,180 84,791 60,419
192,390

Benefits The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the Old Plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are New Plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS.
Under the Old Plan, the New Plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or after 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60.
Retirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months of earnings, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS.
Contributions and Vesting Member contributions under the Old Plan are 4% of annual compensation, up to $4,200, plus 6% of annual compensation in excess of $4,200. Under the Old Plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the Old Plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the New Plan and GSEPS are 1.25% of annual compensation. The state is required to contribute at a specified percentage of active member payrolls, determined annually by actuarial valuation. The state contributions are not at any time refundable to the member or his/her beneficiary.
Pursuant to The Official Code of Georgia Annotated (O.C.G.A.) 47-2-292, the employer contributions for local tax commissioners are funded by the State of Georgia on behalf of the local county employer and pursuant to O.C.G.A. 47-2-290, the employer contributions for certain State Court employees are funded by the state on behalf of the local county employer.
(continued) 23

Financial

Notes to Financial Statements

Employer and nonemployer contributions as a percentage of covered payroll required for fiscal year 2015 were based on the June 30, 2012 actuarial valuation for the Old Plan, New Plan, and GSEPS as follows:

Employer and nonemployer: Normal Employer paid for member Accrued liability
Total

Old Plan
1.39 % 4.75 15.82 21.96 %

New Plan
6.14 %
15.82 21.96 %

GSEPS
3.05 % --
15.82 18.87 %

Members become vested after ten years of membership service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits.

(b) PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. There were 183 employers and 1 nonemployer contributing entity participating in the plan during 2015.

Membership As of June 30, 2015, participation in PSERS is as follows:
Inactive members and beneficiaries currently receiving benefits Inactive members entitled to benefits but not yet receiving benefits Active plan members
Total

16,994 79,468 35,488
131,950

Benefits A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service.
Upon retirement, the member will receive a monthly benefit of $14.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits.
Contributions and Vesting Individuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year.The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees.
Employer contributions required for the year ended June 30, 2015 were $736.31 per active member and were based on the June 30, 2012 actuarial valuation.
Members become vested after ten years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits.

(c) LRS is a single-employer defined benefit pension plan established by the Georgia General Assembly from 1967-1971, and later reestablished in 1979, for the purpose of providing retirement allowances for all members of the Georgia General Assembly. LRS is administered by the ERS Board of Trustees. There was one employer in the plan for 2015.

Membership As of June 30, 2015, participation in LRS is as follows:
Inactive members and beneficiaries currently receiving benefits Inactive members entitled to benefits but not yet receiving benefits Active plan members
Total
24

260 158 219
637
(continued)

Financial
Notes to Financial Statements
Benefits A member's normal retirement is after eight years of creditable service and attainment of age 65, or eight years of membership service (four legislative terms) and attainment of age 62. A member may retire early and elect to receive a monthly retirement benefit after completion of eight years of membership service and attainment of age 60; however, the retirement benefit is reduced by 5% for each year the member is under age 62.
Upon retirement, the member will receive a monthly service retirement allowance of $36, multiplied by the number of years of creditable service, reduced by age reduction factors, if applicable. Death benefits are also available through the plan.
Contributions and Vesting Member contributions are 8.5% of annual salary. The state pays member contributions in excess of 4.75% of annual compensation. Employer contributions are actuarially determined and approved and certified by the ERS Board of Trustees.
There were no employer contributions required for the year ended June 30, 2015 based on the June 30, 2012 actuarial valuation.
Members become vested after eight years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member.
However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits.

(d) GJRS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1998 for the purpose of providing retirement allowances for judges and solicitors general of the state courts and juvenile court judges in Georgia, and their survivors and other beneficiaries, superior court judges of the State of Georgia, and district attorneys of the State of Georgia.

The GJRS was also created to serve the members and beneficiaries of the Trial Judges and Solicitors Retirement Fund, the Superior Court Judges Retirement System, and the District Attorneys Retirement System (collectively, the Predecessor Retirement Systems). As of June 30, 1998, any person who was an active, inactive, or retired member or beneficiary of the Predecessor Retirement Systems was transferred to GJRS in the same status effective July 1, 1998. All assets of the Predecessor Retirement Systems were transferred to GJRS as of July 1, 1998. The ERS Board of Trustees and three additional trustees administer GJRS. There were 91 employers and 1 nonemployer contributing entity participating in the plan during 2015.

Membership As of June 30, 2015, participation in GJRS is as follows:

Inactive members and beneficiaries currently receiving benefits

290

Inactive members entitled to benefits but not yet receiving benefits

63

Active plan members

516

Total

869

Benefits The normal retirement for GJRS is age 60, with 16 years of creditable service; however, a member may retire at age 60 with a minimum of 10 years of creditable service.
Annual retirement benefits paid to members are computed as 662/3% of state-paid salary at retirement for district attorneys and superior court judges and 662/3% of the average over 24 consecutive months for trial judges and solicitors, plus 1% for each year of credited service over 16 years, not to exceed 24 years. Early retirement benefits paid to members are computed as the pro rata portion of the normal retirement benefit, based on service not to exceed 16 years. Death, disability, and spousal benefits are also available.
Contributions and Vesting Members are required to contribute 7.5% of their annual salary. Those who became members prior to July 1, 2012 must also contribute an additional 2.5% of their annual salary if the spousal benefit is elected. Employer contributions are actuarially determined and approved and certified by the GJRS Board of Trustees.
Pursuant to O.C.G.A. 47-23-81, the employer contributions for state court judges and solicitors are funded by the State of Georgia on behalf of the local county employers and pursuant to O.C.G.A. 47-23-82, the employer contributions for juvenile court judges are funded by the state on behalf of local county employers.

(continued) 25

Financial
Notes to Financial Statements
Employer and nonemployer contributions required for fiscal year 2015 were based on the June 30, 2012 actuarial valuation as follows:

Employer and nonemployer: Normal Accrued liability
Total

13.12 % (6.14)
6.98 %

Members become vested after ten years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits.

(e) The GMPF is a single-employer defined benefit pension plan established on July 1, 2002 by the Georgia General Assembly for the purpose of providing retirement allowances and other benefits for members of the Georgia National Guard (National Guard). The ERS Board of Trustees administers the GMPF.
Membership As of June 30, 2015, GMPF had 844 retirees and beneficiaries currently receiving benefits. Active and inactive plan member information is maintained by one employer, the Georgia Department of Defense.
Benefits A member becomes eligible for benefits upon attainment of age 60, with 20 or more years of creditable service (including at least 15 years of service as a member of the National Guard), having served at least 10 consecutive years as a member of the National Guard immediately prior to discharge, and having received an honorable discharge from the National Guard.
The retirement allowance is payable for life in the amount of $50 per month, plus $5 per month for each year of creditable service in excess of 20 years. The maximum benefit is $100 per month.
Contributions and Vesting Employer contributions are actuarially determined and approved and certified by the ERS Board of Trustees. There are no member contributions required.
Employer contributions required for the year ended June 30, 2015 were $139.98 per active member and were based on the June 30, 2012 actuarial valuation.
A member becomes vested after 20 years of creditable service (including at least 15 years of service as a member of the National Guard), having served at least 10 consecutive years as a member of the National Guard immediately prior to discharge, and having received an honorable discharge from the National Guard.

(f) SEAD-Active is a cost-sharing multiple-employer defined other post employment benefit plan created in 2007 by the Georgia General Assembly to amend Title 47 of the Official Code of Georgia Annotated, relating to retirement, so as to establish a fund for the provision of term life insurance to active members of ERS, LRS, and GJRS. Effective July 1, 2009, no newly hired members of any Georgia public retirement system are eligible for term life insurance under SEAD. The SEAD-Active trust fund accumulates in the fund the premiums received from the aforementioned retirement systems, including interest earned on deposits and investments of such payments from active members. There were 481 employers participating in the plan during 2015.

As of June 30, 2015, participation in SEAD-Active is as follows:
Retirees and beneficiaries Terminated employees Active plan members
Total

35,142
35,142

Employee contribution rates of 0.05% or 0.02% of member's salaries were appropriated for the fiscal year ending June 30, 2015 as follows: ERS Old Plan 0.05% and ERS New Plan, LRS and GJRS 0.02%. ERS Old Plan members were hired prior to July 1, 1982 and New Plan members were hired on or after July 1, 1982, but prior to January 1, 2009.

Georgia law provides that employee contributions to the plan shall be in an amount established by the board of trustees not to exceed one half of 1% of the member's earnable compensation. There were no employer contributions required for the fiscal year ended June 30, 2015.

According to the policy terms covering the lives of members, insurance coverage is provided on a monthly, renewable term basis, and no return premiums or cash

value are earned. The net position represents the excess accumulation of investment income and premiums over benefit payments and expenses and is held as

26

(continued)

Financial
Notes to Financial Statements
a reserve for payment of death benefits under existing policies.
The amount of insurance coverage is equal to 18 times monthly earnable compensation frozen at age 60. For members with no creditable service prior to April 1, 1964, the amount decreases from age 60 by one-half of 1% per month until age 65, at which point the member will be covered for 70% of the age 60 coverage. Life insurance proceeds are paid in a lump sum to the beneficiary upon death of the member.
Administrative costs for the plan are determined based on the plan's share of overhead costs to accumulate and invest funds, actuarial services, and to process benefit payments to beneficiaries. Administrative fees are financed from the assets of the plan.

(g) SEAD-OPEB is a cost-sharing multiple-employer defined other post employment benefit plan created in 2007 by the Georgia General Assembly to amend Title 47 of the Official Code of Georgia Annotated, relating to retirement, so as to establish a fund for the provision of term life insurance to retired and vested inactive members of ERS, LRS, and GJRS. Effective July 1, 2009, no newly hired members of any Georgia public retirement system are eligible for term life insurance under SEAD. The SEAD-OPEB trust fund accumulates in the fund the premiums received from the aforementioned retirement systems, including interest earned on deposits and investments of such payments from retired and vested inactive members. There were 481 employers participating in the plan during 2015.

As of June 30, 2015, participation in SEAD-OPEB is as follows:
Retirees and beneficiaries Terminated employees Active plan members
Total

39,794 1,063
35,142
75,999

Employee contribution rates of 0.45% or 0.23% of member's salaries were appropriated for the fiscal year ending June 30, 2015 as follows: ERS Old Plan 0.45% and ERS New Plan, LRS and GJRS 0.23%. ERS Old Plan members were hired prior to July 1, 1982 and New Plan members were hired on or after July 1, 1982, but prior to January 1, 2009.
Georgia law provides that employee contributions to the plan shall be in an amount established by the board of trustees not to exceed one-half of 1% of the member's earnable compensation. There were no employer contributions required for the fiscal year ended June 30, 2015.
According to the policy terms covering the lives of members, insurance coverage is provided on a monthly, renewable term basis, and no return premiums or cash value are earned. The net position represents the excess accumulation of investment income and premiums over benefit payments and expenses and are held as a reserve for payment of death benefits under existing policies.
The amount of insurance for a retiree with creditable service prior to April 1, 1964 is the full amount of insurance under SEAD-Active in effect on the date of retirement. The amount of insurance for a service retiree with no creditable service prior to April 1, 1964 is 70% of the amount of insurance under SEAD-Active at age 60 or at termination, if earlier. Life insurance proceeds are paid in a lump sum to the beneficiary upon death of the retiree.
Administrative costs for the plan are determined based on the plan's share of overhead costs to accumulate and invest funds, actuarial services, and to process benefit payments to beneficiaries. Administrative fees are financed from the assets of the plan.

(h) Survivors Benefit Fund (SBF) was established under O.C.G.A. 47-2-128(c)(3) within the ERS trust solely for maintaining group term life insurance coverage for members of the plan. All assets of SBF are therefore limited to the payment of benefits and expenses for such coverage and cannot be used to pay pension benefits of ERS. SBF is shown on the financial statements separately with the OPEB plans to closely align with their ultimate purpose. While shown with the OPEB plans for reporting purposes, SBF may only be used to pay benefits or expenses of SEAD-OPEB or SEAD-Active with authorization by the ERS Board of Trustees. There are no liabilities associated with this fund and an actuarial valuation is not prepared, as there are no funding requirements.

(i) SCJRF is a single-employer defined benefit pension plan established by the Georgia General Assembly in 1945 for the purpose of providing retirement benefits to the superior court judges of the State of Georgia. SCJRF is directed by its own Board of Trustees. The Boards of Trustees for ERS and SCJRF entered into a contract for ERS to administer the plan effective July 1, 1995.

Membership As of June 30, 2015, SCJRF had 17 retirees and beneficiaries currently receiving benefits and no active members. No new members are allowed into SCJRF.

Benefits

The normal retirement for SCJRF is age 68, with 19 years of creditable service, with a benefit of two-thirds the salary paid to superior court judges. A member

may also retire at age 65, with a minimum of 10 years of creditable service, with a benefit of one-half the salary paid to superior court judges. Death, disability,

27

(continued)

Financial
Notes to Financial Statements
and spousal benefits are also available.
Contributions and Vesting Employer contributions are not actuarially determined, but are provided on an as-needed basis to fund current benefits.
(j) DARF is a multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1949 for the purpose of providing retirement benefits to the district attorneys of the State of Georgia. DARF is directed by its own Board of Trustees. The Boards of Trustees for ERS and DARF entered into a contract for ERS to administer the plan effective July 1, 1995.
Membership As of June 30, 2015, DARF had 5 retirees and beneficiaries currently receiving benefits and no active members. No new members are allowed into DARF.
Benefits Persons appointed as district attorney emeritus shall receive an annual benefit of $15,000, or one-half of the state salary received by such person as a district attorney for the calendar year immediately prior to the person's retirement, whichever is greater.
Contributions and Vesting Employer contributions are not actuarially determined, but are provided on an as-needed basis to fund current benefits.
(k) GDCP is a defined contribution plan established by the Georgia General Assembly in July 1992 for the purpose of providing retirement allowances for state employees who are not members of a public retirement or pension system and do not participate in Social Security. GDCP is administered by the ERS Board of Trustees. There were 58 employers participating in the plan during 2015. There were 138,126 members as of June 30, 2015.
Benefits A member may retire and elect to receive periodic payments after attainment of age 65. The payments will be based upon mortality tables and interest assumptions adopted by the ERS Board of Trustees. If a terminated member has less than $5,000 credited to his/her account, the ERS Board of Trustees has the option of requiring a lump-sum distribution to the member. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary.
Contributions Members are required to contribute 7.5% of their annual salary. There are no employer contributions. Earnings will be credited to each member's account as adopted by the ERS Board of Trustees. Upon termination of employment, the amount of the member's account is refundable upon request by the member.
(l) The 401(k) Plan was established by the State of Georgia Employee Benefit Plan Council (the Council) in accordance with Georgia Law 1985, as amended, Official Code of Georgia, Sections 45-18-50 through 45-18-58, and Section 401(k) of the Internal Revenue Code (IRC). On October 1, 1994, activity commenced when the 401(k) Plan became available to employees of the State of Georgia Community Service Boards (CSBs). On December 1, 1998, the 401(k) Plan became available to employees of the Georgia Lottery Corporation (GLC). On July 1, 2005, the Plan became available to employees of Fayette County Board of Education; on July 1, 2006, the Plan became available to employees of Walton County Board of Education; and on January 1, 2010, the Plan became available to employees of Henry County Board of Education.
Effective July 1, 1998, the State of Georgia Employee's Deferred Compensation Group Trust (Master Trust) was formed for the State of Georgia Deferred Compensation Program to serve as the funding medium for the 401(k) Plan. At that time, the 401(k) Plan began operating on an employee elective deferral basis for all state employees working at least 1,000 hours in a 12-month period. All assets of the 401(k) Plan are held in trust for the exclusive benefit of the participants and their beneficiaries. The assets of the 401(k) Plan and the 457 Plan are commingled in the Master Trust with the respective trusts owning units of the Master Trust. Participant contributions are invested according to the participant's investment election. If the participant does not make an election, investments are automatically defaulted to a Lifecycle Fund based on the participant's date of birth.
Effective July 1, 2005 (HB275), ERS became the trustee of the 401(k) Plan. Aon Hewitt and JPMorgan Chase hold, administer, and invest the assets of the Master Trust.
Contributions and Vesting Participating CSBs, the GLC, and Walton and Henry County Boards of Education offer employer contributions--some matching, some automatic, and some a combination of both--to eligible employees at various rates (limited to a maximum of $260,000 base salary for calendar year 2014 and $265,000 base salary for calendar year 2015). As of January 1, 2009 individual participants may defer up to 80% of eligible compensation, or up to limits prescribed by the IRC (whichever is less).
(continued) 28

Financial

Notes to Financial Statements

Effective January 1, 2009, in accordance with O.C.G.A. 47-2-350 through 47-2-360, newly hired state employees, as well as rehired state employees who did not maintain eligibility for the ERS Old Plan or New Plan, are members of GSEPS. From January 1, 2009 to June 30, 2014, the GSEPS tier included automatic enrollment in the 401(k) Plan at a contribution rate of 1% of salary. Effective July 1, 2014, in accordance with HB764, the employee contribution rate for automatic enrollment increased from 1% to 5%. The state matches 100% of the employee's initial 1% contribution and 50% of contribution percentages 2 through 5. Therefore, the state will match 3% of salary when an employee contributes at least 5% to the 401(k) Plan. Employee contributions greater than 5% of salary do not receive any matching funds. Plan participants who are not employees of the GLC, a CSB, Walton and Henry County Boards of Education, or who are not GSEPS eligible, do not receive any employer contributions in their 401(k) Plan.

All employer contributions are subject to a vesting schedule, which determines eligibility to receive all or a portion of the employer contribution balance at the time of any distribution from the account after separation from all state service. Vesting is determined based on the following schedule:

Less than 1 year 1 2 3 4 5 or more years

--% 20 40 60 80 100

For CSB/GLC participants whose services terminated prior to January 1, 2010 but after December 31, 2001, the following vesting schedule applies:

Less than 2 years 2 3 4 5 6 or more years

--% 20 40 60 80 100

For CSB/GLC participants whose services terminated prior to January 1, 2002, the following vesting schedule applies:

Less than 3 years 3 4 5 6 7 or more years

--% 20 40 60 80 100

Employee contributions and earnings thereon are 100% vested at all times. The 401(k) Plan also allows participants to roll over amounts from other qualified plans to their respective account in the 401(k) Plan on approval by the 401(k) Plan Administrator. Such rollovers are 100% vested at the time of transfer.
Distributions The participant may receive the value of his or her vested accounts upon attaining age 59.5, qualifying financial hardship, or 30 days after retirement or other termination of service (employer contribution balances are only eligible for distribution upon separation from service). Upon the death of a participant, his or her beneficiary shall be entitled to the vested value of his or her accounts. Employees who die while actively employed and eligible for 401(k) Plan employer matching contributions become fully vested in employer contributions upon death. Distributions are made in installments or in a lump sum.

(m) The 457 Plan was established by the State Personnel Board in accordance with Georgia laws 1974, page 198 as amended, Official Code of Georgia, Sections 45-18-30 through 45-18-36, and Section 457 of the Internal Revenue Code (IRC). The 457 Plan is available to employees of the State of Georgia and county health departments and permits such employees to defer a portion of their annual salary until future years. Employee contributions and earnings thereon are 100% vested at all times.
Effective July 1, 1998, the Master Trust was formed for the State of Georgia Deferred Compensation Program to serve as the funding medium for the 457 Plan. All assets of the 457 Plan are held in trust for the exclusive benefit of the participants and their beneficiaries. The assets of the 457 Plan and the 401(k) Plan are commingled in the Master Trust with the respective trusts owning units of the Master Trust. Participant contributions are invested according to the participant's investment election. If the participant does not make an election, investments are automatically defaulted to a Lifecycle Fund based on the participant's date of birth.

(continued) 29

Financial
Notes to Financial Statements
Effective July 1, 2005 (HB275), ERS became the trustee of the 457 Plan. Aon Hewitt and JPMorgan Chase hold, administer, and invest the assets of the Master Trust.
Distributions The balance in the employee's account in the 457 Plan is not available to the employee until age 70.5, termination, retirement, death, or unforeseeable emergency as defined in the 457 Plan. Upon the death of a participant, his or her beneficiary shall be entitled to the vested value of his or her accounts. Distributions are made in installments or in a lump sum.
(3) Significant Accounting Policies and System Asset Matters
(a) Basis of Accounting The System's basic financial statements are prepared on the accrual basis of accounting. Contributions from the employers, nonemployers, and members are recognized when due, based on statutory requirements. Retirement benefits and refund payments are recognized as deductions when due and payable.
During fiscal year 2015, the System adopted the provisions of GASB Statement No. 68, Accounting and Financial Reporting for Pensions, an amendment of GASB Statement No. 27. This Statement improves accounting and financial reporting by state and local governments for pensions. There are no applicable reporting requirements for the System in fiscal year 2015.
During fiscal year 2015, the System adopted the provisions of GASB Statement No. 69, Government Combinations and Disposals of Government Operations. This statement establishes accounting and financial reporting standards related to government combinations and disposals of government operations. There are no applicable reporting requirements for the System in fiscal year 2015.
During fiscal year 2015, the System adopted the provisions of GASB Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees. The objective of this statement is to improve accounting and financial reporting by state and local governments that extend and receive nonexchange financial guarantees. There are no applicable reporting requirements for the System in fiscal year 2015.
During fiscal year 2015, the System adopted the provisions of GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date. This statement improves accounting and financial reporting of pensions by addressing an issue in Statement No. 68, Accounting and Financial Reporting for Pensions, regarding pension contributions made to the pension plan prior to implementation of that Statement. There are no applicable reporting requirements for the System in fiscal year 2015.
(b) Reporting Entity The System is a component unit of the State of Georgia, however, it is accountable for its own fiscal matters and presentation of its separate financial statements. The System has considered potential component units under GASB Statement No. 61, The Financial Reporting Entity's Omnibus An Amendment of GASB Statement No. 14 and No. 34, and GASB Statement No. 39, Determining Whether Certain Organizations are Component Units, and determined there were no component units of the System.
(c) Cash and Cash Equivalents Cash and cash equivalents, reported at cost, include cash on deposit at banks and cash on deposit with the investment custodian earning a credit to offset fees.
(d) Investments Investments are reported at fair value. Equity securities traded on a national or international exchange are valued at the last reported sales price. Private equity fair value is measured using the valuation of the underlying companies as reported by the general partner. These investments, in the form of limited partnerships, reflect values and related performance on a quarter lag basis due to the nature of the investments and the time it takes to value them. The estimated fair value of investments without readily ascertainable market values could differ significantly if a ready market for these assets existed. For fixed income securities, values are based primarily on quoted market prices provided by independent pricing sources. Global foreign exchange holdings are translated using a third party vendor. Investment income is recognized as earned by the System. There are no investments in, loans to, or leases with parties related to the System.
The System utilizes various investment instruments. Investment securities, in general, are exposed to various risks, such as interest rate, credit, foreign currency, and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the financial statements.
(continued) 30

Financial
Notes to Financial Statements
The System's policy in regard to the allocation of invested assets is established on a cost basis in compliance with Georgia statute. Plan assets are managed on a total return basis with a long-term objective of achieving and maintaining a fully-funded status for the benefits provided through the pension plan. The following was the System's adopted asset allocation policy as of June 30, 2015:

Asset Class
Fixed income Equities Alternative investments Cash and cash equivalents
Total

Target Allocation
25%-45% 55%-75%
0%-5%
100%

Approximately 11.5% of the investments held in trust for pension benefits are invested in debt securities of the U.S. government and its instrumentalities, of which 11.4% are U.S. government debt securities and 0.1% are debt securities of the U.S. government instrumentalities. The System has no investments in any one organization, other than those issued by the U.S. government and its instrumentalities, that represent 5% or more of the System's net position restricted for pensions and OPEB.
For the year ended June 30, 2015, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was (5.32)%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested.

(e) Capital Assets Capital assets, including software development costs, are stated at cost less accumulated depreciation. The capitalization thresholds are $100,000 for buildings and building improvements and $5,000 for equipment and vehicles. Depreciation on capital assets is computed using the straight line method over estimated useful lives of five to forty years. Depreciation expense is included in administrative expenses. Maintenance and repairs are charged to administrative expenses when incurred. When assets are retired or otherwise disposed of, the costs and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in the combining statement of changes in fiduciary net position in the period of disposal.

(f) Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of net position and changes therein. Actual results could differ from those estimates.

(4) Investment Program
The System maintains sufficient cash to meet its immediate liquidity needs. Cash not immediately needed is invested as directed by the Board of Trustees. All investments are held by agent custodial banks in the name of the System. State statutes and the System's investment policy authorize the System to invest in a variety of short-term and long-term securities as follows:

(a) Cash and Cash Equivalents Custodial credit risk is the risk that in the event a depository institution or counterparty fails, the System would not be able to recover the value of its deposits or investments. The System does not have a formal policy relating to custodial credit risk. The carrying amount of the System's deposits totaled $190,297,533 at June 30, 2015 with actual bank balances of $181,267,260. The System's bank balances of $168,564,358 are fully insured through the Federal Deposit Insurance Corporation, an independent agency of the U.S. government. The remaining bank deposits of $12,702,902 are uninsured and uncollateralized. The System's noncash investments are held in the System's name and are not exposed to custodial credit risk.

Short-term securities authorized but not currently used, are as follows:
Repurchase and reverse repurchase agreements, whereby the System and a broker exchange cash for direct obligations of the U.S. government or obligations unconditionally guaranteed by agencies of the U.S. government or U.S. corporations. The System or broker promises to repay the cash received, plus interest, at a specific date in the future in exchange for the same securities.

U.S. Treasury obligations.

Commercial paper, with a maturity of 180 days or less. Commercial paper is an unsecured promissory note issued primarily by corporations for a specific amount and maturing on a specific day. The System considers for investment only commercial paper of the highest quality, rated P-1 and/or A-1 by national credit rating agencies.

31

(continued)

Financial
Notes to Financial Statements
Master notes, an overnight security administered by a custodian bank and an obligation of a corporation whose commercial paper is rated P-1 and/or A-1 by national credit rating agencies.
Investments in commercial paper or master notes are limited to no more than $500 million in any one name.
(b) Investments Fixed income investments, managed by the Division of Investment Services (the Division), are authorized in the following instruments: U.S. and foreign government obligations. At June 30, 2015, the System held U.S. Treasury bonds of $1,900,291,770 and international government bonds of $77,112,420.
Obligations unconditionally guaranteed by agencies of the U.S. government. At June 30, 2015, the System held agency bonds of $10,005,150.
U.S. and foreign corporate obligations. At June 30, 2015, the System held U.S. corporate bonds of $2,382,410,600 and international corporate bonds of $173,608,750.
Private placements are authorized under the same general restrictions applicable to corporate bonds. At June 30, 2015, the System did not hold private placements.
Mortgage investments are authorized to the extent that they are secured by first mortgages on improved real property located in the State of Georgia.
Equity securities are also authorized (in statutes) for investment as a complement to the System's fixed-income portfolio and as a long-term inflation hedge. By statute, no more than 75% of the total invested assets on a historical cost basis may be placed in equities. Equity holdings in any one corporation may not exceed 5% of the outstanding equity of the issuing corporation. The equity portfolio is managed by the Division, in conjunction with independent advisors. Buy/ sell decisions are based on securities meeting rating criteria established by the Board of Trustees, in-house research considering such matters as yield, growth, and sales statistics, and analysis of independent market research. Equity trades are approved and executed by the Division's staff. Common stocks eligible for investment are approved by the Investment Committee of the Board of Trustees before being placed on an approved list.
Equity investments are authorized in the following instruments: Domestic equities are those securities considered by the O.C.G.A. to be domiciled in the United States. At June 30, 2015, the System held domestic equities
of $8,161,675,526.
International equities, including American Depository Receipts (ADR), are not considered by the O.C.G.A. to be domiciled in the United States. At June 30, 2015, the System held international equities of $625,175,662 and ADRs of $2,128,282,706.
Alternative investments are authorized (in statutes) to provide portfolio diversification and to enhance the risk-adjusted rate of return for the retirement fund that benefits the members of the System. By statute, the allocation to alternative investments shall not, in the aggregate, exceed 5% of the System's plan assets at any time. Further, in any calendar year, new commitments to alternative investments shall not, in the aggregate, exceed 1% of the System's plan assets until the first occurrence that 4 % of the assets have been invested, at which time there shall be no limit on the percentage of commitments that may be made in any calendar year, subject to compliance with other provisions of the statute. At June 30, 2015, the System held private equity investments of $51,766,923.
The State of Georgia Employee's Deferred Compensation Group Trust (Master Trust) invests in various mutual funds, common collective trust funds, and separate accounts, as selected by participants. Each participant is allowed to select and invest contributions into investment options that own one or more of 3 mutual funds, 14 common collective trust funds, and 1 separate account, as authorized by the Board of Trustees. Mutual funds, common collective trust funds, and separate accounts are reported at the fair value of participant balances.
Substantially all of the investments of ERS, PSERS, LRS, GJRS, GMPF, SBF, SEAD-Active, and SEAD-OPEB are pooled into one common investment fund. Units in the pooled common investment fund are allocated to the respective plans, based upon the cost of assets contributed, and additional units are allocated to the participating plans, based on the market value of the pooled common investment fund at the date of contribution. Net income of the pooled common investment fund is allocated monthly to the participating plans, based upon the number of units outstanding during the month.
(continued) 32

Financial
Notes to Financial Statements
The units and fair value of each plan's equity in the pooled common investment fund at June 30, 2015 were as follows (dollars in thousands):

Employees' Retirement System Public School Employees Retirement System Legislative Retirement System Georgia Judicial Retirement System State Employees'Assurance Department - Active State Employees'Assurance Department - OPEB Survivors Benefit Fund Georgia Military Pension Fund

Fair Value
$ 12,926,975 824,101 32,311 404,378 240,579
1,046,257 119,260 16,669
$ 15,610,530

Units
3,252,585 207,354 8,130 101,747 60,533 263,251 30,007 4,194
3,927,801

Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations to the Employees'Retirement System. State law limits investments to investment grade securities.
It is the System's investment policy to require that the bond portfolio be of high quality and chosen with respect to maturity ranges, coupon levels, refunding characteristics and marketability. The System's policy is to require that new purchases of bonds be restricted to high grade bonds rated no lower than"A"by any nationally recognized statistical rating organization. If a bond is subsequently downgraded to a rating below "A", it is placed on a watch list. The System held one bond which was downgraded to a rating below"A"during the fiscal year ending June 30, 2015. Obligations of the U.S. government or obligations explicitly guaranteed by the U.S. government are not considered to have credit risk and do not require disclosure of credit quality. The quality ratings of investments in fixed income securities as described by Standard & Poor's and by Moody's Investors Service, which are nationally recognized statistical rating organizations, at June 30, 2015 are shown in the following chart:

Quality Ratings of Fixed Income Investments Held at June 30, 2015

Investment Type Domestic obligations:
U.S. Treasuries U.S. Agencies Corporates
Total Corporates International obligations:
Governments Corporates

Standard & Poor's/ Moody's
Quality Rating
AA/Aaa
AAA/Aaa AA/Aa AA/A A/Aa A/A BBB/Baa
A/Aa AA/Aa

June 30,2015 Fair Value
$ 1,900,291,770 10,005,150
365,880,000 313,446,290 597,747,150
80,190,110 948,652,170
76,494,880
2,382,410,600
77,112,420 173,608,750

Total Fixed Income Investments

$ 4,543,428,690

Mutual funds, common collective trust funds, and separate accounts investments of the deferred compensation plans are not considered to have credit risk and do not require disclosure of credit risk rating.

(continued) 33

Financial
Notes to Financial Statements
Concentration of Credit Risk. Concentration of credit risk is the risk of loss that may be attributed to the magnitude of a government's investment in a single issue. At June 30, 2015, the System did not have debt or equity investments in any one organization, other than those issued or guaranteed by the U. S. Government or its agencies, which represented greater than 5% of plan net position.
Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. While the System has no formal interest rate risk policy, active management of the bond portfolio incorporates interest rate risk to generate improved returns. This risk is managed within the portfolio using the effective duration method.This method is widely used in the management of fixed income portfolios and quantifies to a much greater degree the sensitivity to interest rate changes when analyzing a bond portfolio with call options, prepayment provisions, and any other cash flows. Effective duration makes assumptions regarding the most likely timing and amounts of variable cash flows and is best utilized to gauge the effect of a change in interest rates on the fair value of a portfolio. It is believed that the reporting of effective duration found in the table below quantifies to the fullest extent possible the interest rate risk of the System's fixed income assets.

Fixed Income Type
Domestic obligations: U.S. Treasuries U.S. Agencies Corporates
International obligations: Governments Corporates
Total

Effective Duration of Fixed Income Assets

Fair Value June 30, 2015

Percent of All Fixed Income Assets

Effective Duration (Years)

$ 1,900,291,770 10,005,150
2,382,410,600
77,112,420 173,608,750 $ 4,543,428,690

41.8 %

6.2

0.2

0.3

52.5

3.9

1.7

2.3

3.8

2.4

100.0 %

4.8

Mutual funds, common collective trust funds, and separate investments of the deferred compensation plans are not considered to have interest rate risk and do not require disclosure of interest rate risk.

(continued) 34

Financial
Notes to Financial Statements
Foreign Currency Risk. Foreign currency risk is the risk that changes in exchange rates will adversely impact the fair value of an investment. The System's currency risk exposures, or exchange rate risks, primarily reside within the System's international equity investment holdings. The System's foreign exchange risk management policy is to minimize risk and protect the investments from negative impact by hedging foreign currency exposures with foreign exchange instruments when market conditions and circumstances are deemed appropriate. As of June 30, 2015, the System's exposure to foreign currency risk in U.S. Dollars is highlighted in the following table:

International Investment Securities at Fair Value as of June 30, 2015

Currency
Australian Dollar Brazilian Real British Pound Canadian Dollar Danish Krone Euro Hong Kong Dollar Indonesian Rupiah Japanese Yen Malaysian Ringgit Mexican Peso New Taiwan Dollar Norwegian Krone Philippine Peso Polish Zloty Singapore Dollar South African Rand South Korean Won Swedish Krona Swiss Franc Thailand Baht
Total Holdings Subject to Foreign Currency Risk Investment Securities Payable in U.S. Dollars
Total International Investment Securities - at Fair Value

Equities
$ 43,905,092 22,933,815
108,371,525 12,929,015 9,917,072 76,233,489 65,479,876 5,455,766 59,559,248 9,407,840 7,249,077 45,010,401 2,071,297 5,307,393 4,521,457 15,096,642 29,481,033 58,782,988 22,215,773 5,052,347 16,194,516
625,175,662 2,128,282,706
$ 2,753,458,368

Fixed Income
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
-- 250,721,170
250,721,170

Total
43,905,092 22,933,815 108,371,525 12,929,015
9,917,072 76,233,489 65,479,876
5,455,766 59,559,248
9,407,840 7,249,077 45,010,401 2,071,297 5,307,393 4,521,457 15,096,642 29,481,033 58,782,988 22,215,773 5,052,347 16,194,516
625,175,662 2,379,003,876
3,004,179,538

(5) Securities Lending Program
State statutes and Board of Trustees policies permit the System to lend its securities to broker dealers with a simultaneous agreement to return the collateral for the same securities in the future. The System is presently involved in a securities lending program with major brokerage firms. The System lends equity and fixed income securities for varying terms and receives a fee based on the loaned securities'value. The System reports the gross loan fee income earned as investment income on the Combining Statement of Changes in Fiduciary Net Position. During a loan, the System continues to receive dividends and interest as the owner of the loaned securities. The brokerage firms pledge collateral securities consisting of U.S. government and agency securities, mortgage-backed securities issued by a U.S. government agency, corporate bonds, and equities. The collateral value must be equal to at least 102% to 109% of the loaned securities'value, depending on the type of collateral security.
Securities loaned totaled $4,054,032,723 at fair value at June 30, 2015. The collateral value was equal to 104.0% of the loaned securities' value at June 30, 2015. The System's lending collateral was held in the System's name by the tri-party custodian.
Loaned securities are included in the accompanying combining statement of fiduciary net position since the System maintains ownership. The related collateral securities are not recorded as assets on the System's combining statement of fiduciary net position, and a corresponding liability is not recorded, since the System is deemed not to have the ability to pledge or trade the collateral securities. The System is deemed not to have the ability to pledge or sell the collateral securities, since the System's lending contracts do not address whether the lender can pledge or sell the collateral securities without a borrower default, the System has not previously demonstrated that ability, and there are no indications of the System's ability to pledge or sell the collateral securities.
(continued) 35

Financial
Notes to Financial Statements
(6) Capital Assets

The following is a summary of capital assets and depreciation information as of and for the year ended June 30, 2015:

Capital assets: Land Building Equipment Vehicles Computer software

Balance at June 30, 2014
$ 4,072,166 2,800,000 2,482,162 13,382
14,344,609
23,712,319

Additions

Disposals

248,552







156,524











405,076



Accumulated depreciation for: Building Equipment Vehicles Computer software

(700,000)

(70,000)



(1,857,206)

(282,275)



(13,382)





(14,344,609)





(16,915,197)

(352,275)



Capital assets, net

$ 6,797,122

52,801



Balance at June 30, 2015
4,320,718 2,800,000 2,638,686
13,382 14,344,609 24,117,395
(770,000) (2,139,481)
(13,382) (14,344,609) (17,267,472)
6,849,923

During fiscal year 2015, the System did not experience any capital asset impairment loss with respect to the provisions of GASB Statement No. 42, Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries.

(7) Commitments
As of June 30, 2015, the System had committed to fund certain private equity partnerships for a total capital commitment of $190,750,000. Of this amount, $129,969,415 remained unfunded and is not recorded on the System's Combining Statement of Fiduciary Net Position.

(8) Net Pension Liability of Employers and Nonemployers - ERS

The components of the net pension liability of the participating employers and nonemployers at June 30, 2015 were as follows (dollars in thousands):

Total pension liability Plan fiduciary net position
Employers' and nonemployers' net pension liability
Plan fiduciary net position as a percentage of the total pension liability

$

17,019,362

12,967,964

$

4,051,398

76.20%

Actuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2014, using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation Salary increase Investment rate of return

3.0% 5.45-9.25%, including inflation 7.50%, net of pension plan investment expense, including inflation

Mortality rates were based on the RP-2000 Combined Mortality Table for the period after service retirement, for dependent beneficiaries, and for deaths in active service, and the RP-2000 Disabled Mortality Table set back eleven years for males for the period after disability retirement.

The actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2004 June 30, 2009.

(continued) 36

Financial
Notes to Financial Statements
The long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset Class
Fixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks
Total

Target Allocation
30.00 % 39.70
3.70 1.60 18.90 6.10
100.00 %

Long-term Expected Real Rate of Return*
3.00 % 6.50 10.00 13.00 6.50 11.00

* Rates shown are net of the 3.00% assumed rate of inflation

Discount rate: The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Sensitivity of the net pension liability to changes in the discount rate: The following presents the net pension liability, calculated using the discount rate of 7.50%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.50%) or 1 percentage point higher (8.50%) than the current rate (dollars in thousands):

Employers' and nonemployers' net pension liability

1% Decrease (6.50%)
$ 5,743,002

Current Discount
Rate (7.50%)
4,051,398

1% Increase (8.50%)
2,609,240

Actuarial valuation date: June 30, 2014 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2015 using standard roll forward techniques. The roll forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year.

(9) Net Pension Liability of Employers and Nonemployers PSERS

The components of the net pension liability of the participating employers and nonemployers at June 30, 2015 were as follows (dollars in thousands):

Total pension liability Plan fiduciary net position
Employers' and nonemployers' net pension liability
Plan fiduciary net position as a percentage of the total pension liability

$

946,200

823,150

$

123,050

87.00%

Actuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2014, using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation Salary increases Investment rate of return

3.0% n/a 7.50%, net of pension plan investment expense, including inflation

(continued) 37

Financial
Notes to Financial Statements

Mortality rates were based on the RP-2000 Combined MortalityTable set forward one year for males for the period after service retirement, for dependent beneficiaries, and for deaths in active service, and the RP-2000 Disabled Mortality Table set back two years for males and set forward one year for females for the period after disability retirement.

The actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2004 June 30, 2009.

The long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset Class
Fixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks
Total

Target Allocation
30.00 % 39.70
3.70 1.60 18.90 6.10
100.00 %

Long-term Expected Real Rate of Return*
3.00 % 6.50 10.00 13.00 6.50 11.00

* Rates shown are net of the 3.00% assumed rate of inflation
Discount rate: The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Sensitivity of the net pension liability to changes in the discount rate: The following presents the net pension liability, calculated using the discount rate of 7.50%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.50%) or 1 percentage point higher (8.50%) than the current rate (dollars in thousands):

Employers' and nonemployers' net pension liability

1% Decrease (6.50%)

$

226,255

Current Discount
Rate (7.50%)
123,050

1% Increase (8.50%)
36,107

Actuarial valuation date: June 30, 2014 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2015 using standard roll forward techniques. The roll forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year.

(10) Net Pension Liability of Employer LRS

The components of the net pension liability of the participating employer at June 30, 2015 were as follows (dollars in thousands):

Total pension liability Plan fiduciary net position
Employer's net pension liability (asset)
Plan fiduciary net position as a percentage of the total pension liability

$

25,271

32,359

$

(7,088)

128.05%

(continued) 38

Financial
Notes to Financial Statements
Actuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2014, using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation Salary increases Investment rate of return

3.0% None 7.50%, net of pension plan investment expense, including inflation

Mortality rates were based on the RP-2000 Combined Mortality Table for the period after service retirement, for dependent beneficiaries, and for deaths in active service, and the RP-2000 Disabled Mortality Table set back eleven years for males for the period after disability retirement.

The actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2004 June 30, 2009.

The long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset Class Fixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks
Total
* Rates shown are net of the 3.00% assumed rate of inflation

Target Allocation
30.00 % 39.70
3.70 1.60 18.90 6.10
100.00 %

Long-term Expected Real Rate of Return*
3.00 % 6.50 10.00 13.00 6.50 11.00

Discount rate: The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Sensitivity of the net pension liability to changes in the discount rate: The following presents the net pension liability, calculated using the discount rate of 7.50%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.50%) or 1 percentage point higher (8.50%) than the current rate (dollars in thousands):

Employer's net pension liability (asset)

1% Decrease (6.50%)

$

(4,722)

Current Discount
Rate (7.50%)
(7,088)

1% Increase (8.50%)
(9,053)

Actuarial valuation date: June 30, 2014 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2015 using standard roll forward techniques. The roll forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year.

(continued) 39

Financial
Notes to Financial Statements

(11) Net Pension Liability of Employers and Nonemployers GJRS

The components of the net pension liability of the participating employers and nonemployers at June 30, 2015 were as follows (dollars in thousands):

Total pension liability Plan fiduciary net position
Employers' and nonemployers' net pension liability (asset)
Plan fiduciary net position as a percentage of the total pension liability

$

357,081

404,852

$

(47,771)

113.38%

Actuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2014, using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation Salary increase Investment rate of return

3.0% 6.00%, including inflation 7.50%, net of pension plan investment expense, including inflation

Mortality rates were based on the RP-2000 Combined Mortality Table for the period after service retirement, for dependent beneficiaries, and for deaths in active service, and the RP-2000 Disabled Mortality Table set back eleven years for males for the period after disability retirement.

The actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2004 June 30, 2009.

The long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset Class
Fixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks
Total

Target Allocation
30.00 % 39.70
3.70 1.60 18.90 6.10
100.00 %

Long-term Expected Real Rate of Return*
3.00 % 6.50 10.00 13.00 6.50 11.00

* Rates shown are net of the 3.00% assumed rate of inflation
Discount rate: The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Sensitivity of the net pension liability to changes in the discount rate: The following presents the net pension liability, calculated using the discount rate of 7.50%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.50%) or 1 percentage point higher (8.50%) than the current rate (dollars in thousands):

Employers' and nonemployers' net pension liability (asset)

1% Decrease (6.50%)

$

(12,669)

Current Discount
Rate (7.50%)
(47,771)

1% Increase (8.50%)
(78,291)

(continued) 40

Financial
Notes to Financial Statements
Actuarial valuation date: June 30, 2014 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2015 using standard roll forward techniques. The roll forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year.

(12) Net Pension Liability of Employer GMPF

The components of the net pension liability of the participating employer at June 30, 2015 were as follows (dollars in thousands):

Total pension liability Plan fiduciary net position
Employer's net pension liability
Plan fiduciary net position as a percentage of the total pension liability

$

33,343

16,712

$

16,631

50.12%

Actuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2014, using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation Salary increase Investment rate of return

3.0% n/a 7.50%, net of pension plan investment expense, including inflation

Mortality rates were based on the RP-2000 Combined Mortality Table for the period after service retirement, for dependent beneficiaries, and for deaths in active service.
The actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2004 June 30, 2009.
The long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset Class
Fixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks
Total

Target Allocation
30.00 % 39.70
3.70 1.60 18.90 6.10
100.00 %

Long-term Expected Real Rate of Return*
3.00 % 6.50 10.00 13.00 6.50 11.00

* Rates shown are net of the 3.00% assumed rate of inflation
Discount rate: The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

(continued) 41

Financial
Notes to Financial Statements
Sensitivity of the net pension liability to changes in the discount rate: The following presents the net pension liability, calculated using the discount rate of 7.50%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.50%) or 1 percentage point higher (8.50%) than the current rate (dollars in thousands):

Employer's net pension liability

1% Decrease (6.50%)

$

21,553

Current Discount
Rate (7.50%)
16,631

1% Increase (8.50%)
12,642

Actuarial valuation date: June 30, 2014 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2015 using standard roll forward techniques. The roll forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year.
(13) Funded Status and Funding Progress - Defined Benefit OPEB Plans
The funded status of the SEAD-Active and SEAD-OPEB plans as of June 30, 2014, the most recent actuarial valuation date, are as follows (dollar amounts in thousands):

SEAD - Active SEAD - OPEB

Actuarial Value of Plan Assets (a)

$

235,358

1,037,901

Actuarial Accrued Liability (AAL) Projected Unit Credit (b)
35,877 788,020

Unfunded AAL/ (Funded Excess) (b-a)
(199,481) (249,881)

Funded Ratio (a/b)
656.0 %
131.7

Annual Covered Payroll
(c)
$ 1,628,712 1,628,712

Unfunded AAL/ (Funded Excess) as Percentage of Covered Payroll
[(b-a)/c]
(12.2) %
(15.3)

The SBF does not have an actuarial valuation as there are no funding requirements and no liabilities related to the fund.

The schedules of funding progress, presented as required supplementary information (RSI) following the notes to the financial statements, present multi-year trend information about whether the actuarial values of plan assets are increasing or decreasing over time relative to the AALs for benefits.
Additional information as of the latest actuarial valuation follows:

Valuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method
Actuarial assumptions: Investment rate of return Projected salary increases: ERS GJRS LRS
Post retirement cost-of-living adjustment

SEAD-Active June 30, 2014 Projected Unit Credit Level dollar, closed N/A Market value of assets
7.50%
5.45-9.25% 6.00% -- N/A

SEAD-OPEB June 30, 2014 Projected Unit Credit Level dollar, closed N/A Market value of assets
7.50%
5.45-9.25% 6.00% -- N/A

1 Includes inflation rate of 3.00%.

42

Financial
Required Supplementary Information (UNAUDITED) Schedules of Employers' and Nonemployers' Contributions - Defined Benefit Pension Plans
For year ended June 30 (In thousands)
(continued) 43

Employees' Retirement System1
Public School Employees Retirement System2
Legislative Retirement System3

Year Ended
6/30/2006 6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015
6/30/2006 6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015
6/30/2006 6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015

Actuarially Determined Contribution
(a)

$

258,482

270,141

286,256

282,103

263,064

261,132

273,623

358,376

428,982

517,220

3,638 6,490 2,869 5,529 5,530 7,509 15,884 24,829 27,160 28,461

-- -- -- -- -- -- -- -- -- --

Contributions in relation to the actuarially determined contribution
(b)
258,482 270,141 286,256 281,206 263,064 261,132 274,034 358,992 429,752 518,163
3,638 6,490 2,869 5,529 5,530 7,509 15,884 24,829 27,160 28,461
54 62 73 71 75 75 76 128 45 --

Contribution deficiency (excess)
(a-b)
-- -- -- 897 -- -- (411) (616) (770) (943)
-- -- -- -- -- -- -- -- -- --
(54) (62) (73) (71) (75) (75) (76) (128) (45)
--

Covered employee payroll
(c)
2,630,167 2,680,972 2,809,199 2,674,155 2,571,042 2,486,780 2,414,884 2,335,773 2,335,773 2,353,225
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Contributions as a percentage
of coveredemployee payroll
(b/c)
9.8 % 10.1 10.2 10.5 10.2 10.5 11.3 15.4 18.4 22.0
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Financial
Required Supplementary Information (UNAUDITED) Schedules of Employers' and Nonemployers' Contributions - Defined Benefit Pension Plans
For year ended June 30 (In thousands)
44

Georgia Judicial Retirement System Georgia Military Pension Fund4

Year Ended
6/30/2006 6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015
6/30/2006 6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015

Actuarially Determined Contribution
(a)

$

1,683

1,778

2,395

1,703

2,600

1,932

2,083

2,279

2,375

4,261

891 1,005 1,103 1,323 1,434 1,282 1,521 1,703 1,892 1,893

Contributions in relation to the actuarially determined contribution
(b)
1,683 1,778 2,395 1,703 2,600 1,932 2,083 2,279 2,375 4,261
891 1,005 1,103 1,323 1,434 1,282 1,521 1,703 1,892 1,893

Contribution deficiency (excess)
(a-b)
-- -- -- -- -- -- -- -- -- --
-- -- -- -- -- -- -- -- -- --

Covered employee payroll
(c)
45,308 48,621 51,102 52,803 51,293 52,331 51,898 52,807 54,787 54,272
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Contributions as a percentage
of coveredemployee payroll
(b/c)
3.7 % 3.7 4.7 3.2 5.1 3.7 4.0 4.3 4.3 7.9
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

This data, except for annual covered payroll, was provided by the System's actuary.
1 An employer group within ERS did not contribute the full actuarially determined contribution. This employer is making additional contributions to repay this shortfall. 2No statistics regarding covered payroll are available. Contributions are not based upon members'salaries, but are simply $4 per member, per month, for nine months, each fiscal year if hired prior to July 1, 2012 and $10 per member, per month, for nine months, if hired after July 1, 2012. 3 The General Assembly of Georgia made contributions each year that were not required. 4No statistics regarding covered payroll are available. Active and inactive plan member information is maintained by the Georgia Department of Defense.
See accompanying notes to required supplementary schedules and accompanying independent auditors'report.

Financial
Required Supplementary Information (UNAUDITED)
Schedules of Employers' and Nonemployers' Net Pension Liability Defined Benefit Pension Plans
(In thousands)
Employees' Retirement System: Total pension liability Plan fiduciary net position Employers' and nonemployers' net pension liability Plan fiduciary net position as a percentage of the total pension liability Covered-employee payroll Employers'and nonemployers'net pension liability as a percentage of covered-employee payroll
Public School Employees Retirement System: Total pension liability Plan fiduciary net position Employers' and nonemployers' net pension liability Plan fiduciary net position as a percentage of the total pension liability Covered-employee payroll Employers'and nonemployers'net pension liability as a percentage of covered-employee payroll
Legislative Retirement System: Total pension liability Plan fiduciary net position Employer's net pension liability (asset) Plan fiduciary net position as a percentage of the total pension liability Covered-employee payroll Employer's net pension liability (asset) as a percentage of covered-employee payroll
Georgia Judicial Retirement System: Total pension liability Plan fiduciary net position Employers' and nonemployers' net pension liability (asset) Plan fiduciary net position as a percentage of the total pension liability Covered-employee payroll Employers'and nonemployers'net pension liability (asset) as a percentage of covered-employee payroll
Georgia Military Pension Fund: Total pension liability Plan fiduciary net position Employer's net pension liability Plan fiduciary net position as a percentage of the total pension liability Covered-employee payroll Employer's net pension liability as a percentage of covered-employee payroll
Schedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors'report.

June 30, 2015

June 30, 2014

$

17,019,362

12,967,964

$

4,051,398

76.20 %

$

2,353,225

172.16 %

17,042,149 13,291,531
3,750,618
77.99 % 2,335,773
160.57 %

$

946,200

823,150

930,745 821,733

$

123,050

109,012

87.00 % n/a n/a

88.29 % n/a n/a

$

25,271

32,359

$

(7,088)

128.05 % n/a n/a

25,216 32,794
(7,578)
130.05 % n/a n/a

$

357,081

404,852

$

(47,771)

113.38 %

$

54,272

(88.02) %

350,443 400,790
(50,347)
114.37 % 54,787 (91.90) %

$

33,343

16,712

$

16,631

50.12 % n/a n/a

31,511 15,251
16,260
48.40 % n/a n/a

(continued) 45

Financial
Required Supplementary Information (UNAUDITED)
Schedules of Changes in Employers' and Nonemployers' Net Pension Liability Defined Benefit Pension Plans
(In thousands)

Employees' Retirement System: Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions
Net change in total pension liability Total pension liability-beginning
Total pension liability-ending (a)
Plan fiduciary net position: Contributions-employer Contributions-nonemployer Contributions-member Administrative expense allotment Net investment income Benefit payments Administrative expense Refunds of contributions Other
Net change in plan fiduciary net position Plan fiduciary net position-beginning
Plan fiduciary net position-ending (b)
Net pension liability-ending (a)-(b)

June 30, 2015 June 30, 2014

$

145,045

1,227,846

--

(53,950)

--

(1,334,278)

(7,450)

(22,787) 17,042,149

17,019,362

505,668 12,495 33,713 10
474,147 (1,334,278)
(7,872) (7,450)
--

(323,657) 13,291,531

12,967,964

$

4,051,398

150,075 1,224,380
-- -- -- (1,305,998) (8,757)
59,700 16,982,449
17,042,149
418,807 10,945 32,423 --
2,021,748 (1,305,998)
(7,440) (8,757)
--
1,161,728 12,129,803
13,291,531
3,750,618

Public School Employees Retirement System: Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions
Net change in total pension liability Total pension liability-beginning
Total pension liability-ending (a)
Plan fiduciary net position: Contributions-nonemployer Contributions-member Net investment income Benefit payments Administrative expense Refunds of contributions Other
Net change in plan fiduciary net position Plan fiduciary net position-beginning
Plan fiduciary net position-ending (b)
Net pension liability-ending (a)-(b)

$

12,088

67,652

--

(6,858)

--

(56,972)

(455)

15,455 930,745

946,200

11,049 66,143
-- -- -- (56,189) (514)
20,489 910,256
930,745

28,461 1,800
30,129 (56,972)
(1,545) (456) --

1,417 821,733

823,150

$

123,050

27,160 1,659
123,799 (56,189)
(1,450) (514) --
94,465 727,268
821,733
109,012

(continued) 46

Financial
Required Supplementary Information (UNAUDITED)
Schedules of Changes in Employers' and Nonemployers' Net Pension Liability Defined Benefit Pension Plans
(In thousands)

Legislative Retirement System: Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions
Net change in total pension liability Total pension liability-beginning
Total pension liability-ending (a)
Plan fiduciary net position: Contributions-employer Contributions-member Net investment income Benefit payments Administrative expense Refunds of contributions Other
Net change in plan fiduciary net position Plan fiduciary net position-beginning
Plan fiduciary net position-ending (b)
Net pension liability (asset)-ending (a)-(b)

June 30, 2015 June 30, 2014

$

338

1,824

--

(325)

--

(1,756)

(26)

55 25,216

25,271

-- 327 1,189 (1,756) (169) (26) --

(435) 32,794

32,359

$

(7,088)

344 1,799
-- -- -- (1,801) (30)
312 24,904
25,216
45 282 4,969 (1,801) (152) (30) --
3,313 29,481
32,794
(7,578)

Georgia Judicial Retirement System: Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions
Net change in total pension liability Total pension liability-beginning
Total pension liability-ending (a)
Plan fiduciary net position: Contributions-employer Contributions-nonemployer Contributions-member Net investment income Benefit payments Administrative expense Refunds of contributions Other
Net change in plan fiduciary net position Plan fiduciary net position-beginning
Plan fiduciary net position-ending (b)
Net pension liability (asset)-ending (a)-(b)

$

7,751

25,566

--

(7,542)

--

(18,365)

(772)

6,638 350,443

357,081

2,696 1,564 5,061 14,697 (18,365)
(819) (772)
--

4,062 400,790

404,852

$

(47,771)

7,584 24,530
-- -- -- (17,441) (22)
14,651 335,792
350,443
1,373 1,002 4,731 60,012 (17,441)
(754) (22) --
48,901 351,889
400,790
(50,347)

47

(continued)

Financial
Required Supplementary Information (UNAUDITED)
Schedules of Changes in Employers' and Nonemployers' Net Pension Liability Defined Benefit Pension Plans
(In thousands)

Georgia Military Pension Fund Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions
Net change in total pension liability Total pension liability-beginning
Total pension liability-ending (a)
Plan fiduciary net position: Contributions-employer Contributions-member Net investment income Benefit payments Administrative expense Refunds of contributions Other
Net change in plan fiduciary net position Plan fiduciary net position-beginning
Plan fiduciary net position-ending (b)
Net pension liability-ending (a)-(b)

June 30, 2015 June 30, 2014

$

73

2,330

--

326

--

(897)

--

1,832 31,511

33,343

1,893 --
585 (896) (121)
-- --

1,461 15,251

16,712

$

16,631

73 2,223
-- -- -- (841) --
1,455 30,056
31,511
1,892 --
2,179 (841) (110) -- --
3,120 12,131
15,251
16,260

Schedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors'report.

48

Financial
Required Supplementary Information (UNAUDITED) Schedule of Investment Returns
For the year ended June 30, 2015
Pooled Investment Fund: Annual money-weighted rate of return, net of investment expense
Schedule is intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedules and accompanying independent auditors'report.

2015
(5.32) %

2014
5.95 %

49

Financial
Required Supplementary Information (UNAUDITED) Schedules of Funding Progress - Defined Benefit OPEB Plans
June 30, 2015 (In thousands)
50

State Employees' Assurance Department-Active State Employees' Assurance Department-OPEB

Actuarial valuation
date
6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014
6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014

Actuarial value of plan assets
(a)

$

144,161

156,132

184,783

183,390

204,779

235,358

628,199 680,449 807,893 818,284 907,831 1,037,901

This data, except for annual covered payroll, was provided by the System's actuary. The SBF does not obtain an actuarial valuation as there are no funding requirements or liabilities related to the fund. See accompanying notes to required supplementary schedules and accompanying independent auditors'report.

Actuarial accrued liability (AAL) projected unit credit
(b)
61,351 40,523 40,145 39,317 37,512 35,877
733,671 691,001 678,421 704,617 754,786 788,020

Unfunded AAL/ (funded excess)
(b-a)
(82,810) (115,609) (144,638) (144,073) (167,267) (199,481)
105,472 10,552
(129,472) (113,667) (153,045) (249,881)

Funded ratio (a/b)
235 % 385 460 466 546 656
86 98 119 116 120 132

Annual covered payroll
(c)
$ 2,653,527 2,401,974 2,166,982 1,962,800 1,767,052 1,628,712
2,653,527 2,401,974 2,166,982 1,962,800 1,767,052 1,628,712

Unfunded AAL/ (funded excess) as percentage of covered payroll
[(b-a)/c]
(3) % (5) (7) (7) (9) (12)
4 -- (6) (6) (9) (15)

Financial
Required Supplementary Information (UNAUDITED)
Schedules of Employer Contributions-Defined Benefit OPEB Plans
June 30, 2015 (In thousands)

State Employees'Assurance Department-Active State Employees'Assurance Department-OPEB

Year ended June 30
2009 2010 2011 2012 2013 2014
2009 2010 2011 20121 20131 2014

State annual required
contribution

Percentage contributed

$

--

--

--

--

--

--

-- -- -- 12,724 5,009 --

N/A N/A N/A N/A N/A N/A
N/A N/A N/A 100.0 % 100.0 % N/A

This data was provided by the System's actuary.
There are no required contributions to the SBF Fund. 1 During fiscal year 2012, in lieu of a required employer contribution, $12,724,000 was transferred from Survivor Benefit Fund to SEAD-OPEB. During fiscal year 2013, in lieu of a required employer contribution, $5,009,000 was transferred from Survivor Benefit Fund to SEAD-OPEB.
See accompanying notes to required supplementary schedules and accompanying independent auditors'report.

51

Financial
Notes to Required Supplementary Information (UNAUDITED)
June 30, 2015
(1) Schedule of Employers' and Nonemployers' Contributions Defined Benefit Pension Plans This schedule presents the required contributions and the percent of required contributions actually contributed.
(2) Schedule of Employers' and Nonemployers' Net Pension Liability Defined Benefit Pension Plans The components of the net pension liability as of the fiscal year end and the fiduciary net position as a percentage of the total pension liability as of that date are presented in this schedule. This trend information will be accumulated to display a ten-year presentation.
(3) Schedule of Changes in Employers' and Nonemployers' Net Pension Liability Defined Benefit Pension Plans Net pension liability, which is measured as total pension liability less the amount of the fiduciary net position, is presented in this schedule. This trend information will be accumulated to display a ten-year presentation.
(4) Schedule of Investment Returns This schedule presents historical trend information about the annual money-weighted rate of return on plan investments, net of plan investment expense. This trend information will be accumulated to display a ten-year presentation.
(5) Individual Plan Information This note provides information about changes of benefit terms, changes of assumptions, and methods and assumptions used in calculations of actuarially determined contributions.
Employees' Retirement System Changes of benefit terms - a new benefit tier was added for members joining the System on and after January 1, 2009.
Changes of assumptions - in 2010 and later, the expectation of retired life mortality was changed to the RP-2000 Mortality Table rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience.
Public School Employees Retirement System Changes of benefit terms - the member contribution rate was increased from $4 to $10 per month for members joining the System on or after July 1, 2012.
Changes of assumptions - in 2010 and later, the expectation of retired life mortality was changed to the RP-2000 Mortality Table rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience.
Legislative Retirement System Changes of benefit terms - none.
Changes of assumptions - in 2010 and later, the expectation of retired life mortality was changed to the RP-2000 Mortality Table rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, and mortality were adjusted to more closely reflect actual experience.
Georgia Judicial Retirement System Changes of benefit terms - spouses benefits were changed for members joining the System on and after July 1, 2012.
Changes of assumptions - in 2010 and later, the expectation of retired life mortality was changed to the RP-2000 Mortality Table rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience.
Georgia Military Pension Fund Changes of benefit terms - none.
Changes of assumptions - in 2010 and later, the expectation of retired life mortality was changed to the RP-2000 Mortality Table rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement and mortality were adjusted to more closely reflect actual experience.
(continued) 52

Financial
Notes to Required Supplementary Information (UNAUDITED)
Method and assumptions used in calculations of actuarially determined contributions. The actuarially determined contribution rates in the schedules of employers' and nonemployers'contributions are calculated as of June 30, 2012, three years prior to the end of the fiscal year in which contributions are reported. The following actuarial methods and assumptions were used to determine the most recent contribution rates reported in those schedules:

Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary Increases:
Fiscal Year 2012-2013 Fiscal Year 2014+, including inflation Investment rate of return

ERS
Entry age Level dollar, open 30 years 7-year smoothed market 3.00%

PSERS
Entry age Level dollar, open 30 years 7-year smoothed market 3.00%

LRS
Entry age Level dollar, open 30 years 7-year smoothed market 3.00%

2.725-4.625% 5.45-9.25% 7.50% net of pension plan investment expense, including inflation

n/a n/a 7.50% net of pension plan investment expense, including inflation

n/a n/a 7.50% net of pension plan investment expense, including inflation

Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary Increases:
Fiscal Year 2012-2013 Fiscal Year 2014+, including inflation Investment rate of return

GJRS
Entry age Level percent of pay, open 10 years 7-year smoothed market 3.00%

GMPF
Entry age Level dollar, open 20 years 7-year smoothed market 3.00%

3.00% 6.00% 7.50% net of pension plan investment expense, including inflation

n/a n/a 7.50% net of pension plan investment expense, including inflation

(6) Schedule of Funding Progress Defined Benefit OPEB Plans The actuarial value of assets is equal to the fair value of assets for the defined benefit OPEB plans.
(7) Schedule of Employer Contributions Defined Benefit OPEB Plans The required employer contributions and percent of those contributions actually made are presented in the schedule.

(continued) 53

Financial
Notes to Required Supplementary Information (UNAUDITED)
(8) Actuarial Assumptions Defined Benefit OPEB Plans The SBF does not have an actuarial valuation as there are no funding requirements and no liabilities related to the fund. The information presented as the required supplementary information was determined as part of the actuarial valuations for the SEAD-Active and SEAD-OPEB plans at the dates indicated. Additional information from the actuarial valuations for the most recent two-year period is as follows:

Valuation date Actuarial cost method Amortization method Remaining amortization period of the funded excess Asset valuation method Actuarial assumptions:
Investment rate of return Projected salary increases:
ERS GJRS LRS

SEAD - Active June 30, 2014 Projected Unit Credit Level dollar, closed n/a Market value of assets
7.50%
5.45-9.25% 6.00% 0.00%

SEAD - Active June 30, 2013 Projected Unit Credit Level dollar, closed n/a Market value of assets
7.50%
5.45-9.25% 6.00% 0.00%

Valuation date Actuarial cost method Amortization method Remaining amortization period of the funded excess Asset valuation method Actuarial assumptions:
Investment rate of return Projected salary increases:
ERS GJRS LRS

SEAD - OPEB June 30, 2014 Projected Unit Credit Level dollar, closed n/a Market value of assets
7.50%
5.45-9.25% 6.00% 0.00%

SEAD - OPEB June 30, 2013 Projected Unit Credit Level dollar, closed n/a Market value of assets
7.50%
5.45-9.25% 6.00% 0.00%

Includes inflation rate of 3.00% in the 2014 and 2013 valuations.

54

Financial
Additional Information
Schedule of Administrative Expenses - Contributions and Expenses
Year ended June 30, 2015 (with comparative amounts for the year ended June 30, 2014) (In thousands)
Contributions: Employees' Retirement System Public School Employees Retirement System Legislative Retirement System Georgia Judicial Retirement System State Employees'Assurance Department - Active State Employees'Assurance Department - OPEB Georgia Defined Contribution Plan 401(k) Plan 457 Plan Georgia Military Pension Fund Superior Court Judges Retirement Fund District Attorneys Retirement Fund
Total contributions
Expenses: Personal services: Salaries and wages Retirement contributions FICA Health insurance Miscellaneous
Communications: Postage Publications and printing Telecommunications Travel
Professional services: Accounting services Computer services Contracts Actuarial services Medical services Professional fees Legal services
Management fees: Building maintenance
Other services and charges: Temporary services Supplies and materials Repairs and maintenance Courier services Depreciation Miscellaneous Office equipment
Total expenses
Net income
See accompanying independent auditors'report.

2015

2014

$

7,872 $

7,440

1,545

1,450

169

152

819

754

47

46

428

414

990

991

2,755

2,300

866

812

121

110

3

6

1

1

15,616

14,476

5,098 1,084
361 1,552
89
8,184
267 39 63 14
383
603 792 3,013 380 187 309
41
5,325

4,961 881 349
1,529 93
7,813
228 11 71 14
324
585 715 2,753 213 177 172
37
4,652

617

617

621

673

57

54

18

17

3

3

352

270

53

50

3

3

1,107

1,070

15,616

14,476

$

$



55

Financial
Additional Information
Schedule of Investment Expenses
Year ended June 30, 2015 (with comparative amounts for the year ended June 30, 2014)
Investment advisory and custodial fees Miscellaneous Total investment expenses
See accompanying independent auditors'report.

2015

2014

$

7,442,722 $

8,254,438

13,196,528

11,116,668

$

20,639,250 $

19,371,106

56

Investment Section

ERS

GMPF

GJRS

ERSGA

LRS

PSR

GDCP

PSERS

E RSGA
Employees' Retirement System of Georgia
Serving those who serve Georgia

Investment
Investment Overview
On the macro front, the concerns are largely the same as the prior year with the addition of the effect of low oil prices on energy related companies. The economy is growing at a pedestrian rate of just above 2% per year and Europe's recovery remains relatively weak. A slowdown in China's rate of growth is having a negative effect on commodities and emerging markets. The Middle East and the Ukraine remain in the headlines. Offsetting these concerns to some extent has been a decent housing market and a good jobs market. Unlike the robust returns of last year, the markets took a bit of a breather. The U.S. stock market returned 7.3% for the fiscal year.
It is difficult not to get caught up in the headlines, but as a pension plan it is more important to stay focused on the long term. The System continues to invest in a mix of liquid, high-quality bonds and stocks. In addition, the System is implementing a private markets program in a disciplined manner. These types of investments allow the System to participate in rising markets while moderating the risks on the downside. A high-quality balanced fund has proven to be a successful strategy in a variety of markets over long periods of time.
As in previous years, the bias to quality was a primary goal and was successfully met. "Conservation of Capital"and "Conservatism"remain the guiding principles for investment decisions. The Board of Trustees continues to use a diversified portfolio to accomplish these objectives.
The domestic economy continued to grow for the fiscal year. Industrial production, personal income and housing all improved last year, while the employment data has been strong. There continues to be general weakness in most foreign economies. A combination of stimulative policies by central bankers and improving developed economies helped those financial markets relative to emerging markets.
Studies undertaken to evaluate the investment returns of pension funds over very long time horizons indicate that the asset allocation decision has the largest impact on the fund's returns. Although the returns for the various asset categories vary from year to year, over the long term equities usually outperform fixed income and cash by a very wide margin. For that reason, the System has generally maintained a significant equity exposure with the remainder of the fund invested in fixed income securities designed to generate income and preserve capital.

Returns for one, three, five, ten and twenty year periods are presented in this section. Longer time periods, such as the twenty-year period, allow for more valid evaluation of returns, both in absolute terms and relative to an asset class index, by reducing emphasis on the short-term volatility of markets. The Daily Valuation Method was used to calculate rates of return in a manner consistent with the CFA Institute's objectives as stated in its publication "Global Investment Performance Standards Handbook," third edition.
The return for the S&P 500 was 7.4%. U.S. large cap stocks outperformed small cap and mid cap stocks last year. The S&P MidCap 400 and the S&P SmallCap 600 indexes had returns of 6.4% and 6.7%, respectively. The Healthcare and Consumer Discretionary sectors had the best performance, while Energy and Utilities lagged.
International markets, on the other hand, had negative returns. The MSCI EAFE Index had a -4.2% return and the MSCI Emerging Market Index had a return of -5.1%. The returns were much stronger in local currency terms with only Canada suffering a negative return in its own currency. The strength of the dollar reduced those returns, in some cases by over 20%.
The longer the maturity of the bond, the better the performance. In contrast to the previous year, the spread on corporate bonds widened, which lowered their returns. The total return on the 10-year Treasury Note was 3.8% and the 30-year Treasury Bond had a 6.9% return. The return on short-term Treasury bills was negligible again due to the Federal Reserve's policies to stimulate the economy.
We look at two fixed income indexes to measure the bond market's performance. The Barclays Government / Credit Index had a return of 1.7%. It is a broad index containing corporate and government sponsored bonds as well as Treasuries. The Citigroup Treasury / Sponsored / AAA/AA had a return of 2.2% and is a broad index containing higher rated corporate bonds as well as Treasuries and Government securities. Higher quality bonds outperformed lower quality bonds as evidenced by the 2.0% return for AA rated bonds versus 0.3% for BBB rated bonds.
In summary, the investment status of the System is excellent. The high quality of the System's investments is in keeping with the continued policy of "Conservatism" and "Conservation of Capital."
Prepared by the Division of Investment Services

58

Investment
Pooled Investment Fund
As of June 30, 2015
Employees' Retirement System (ERS) Public School Employees Retirement System (PSERS) Legislative Retirement System (LRS) Georgia Judicial Retirement System (GJRS) State Employees'Assurance Department (SEAD) - Active State Employees'Assurance Department (SEAD) - OPEB Survivors Benefit Fund (SBF) Georgia Military Pension Fund (GMPF)
Total
Rates of Return

$

12,926,975,325

824,101,248

32,310,792

404,378,302

240,578,781

1,046,257,156

119,260,307

16,668,905

$

15,610,530,816

1 year 3 year 5 year 10 year 20 year

Equities
4.35 % 15.40 % 15.17 %
7.22 % 8.40 %

S&P 1500
7.31 % 17.47 % 17.43 %
8.10 % 9.19 %

MSCI ACWI ex US (5.26)% 9.44 % 7.76 % 5.54 % --

Fixed Income
2.13 % 1.49 % 2.98 % 4.42 % 6.01 %

Barclay's Govt/Credit
1.69 % 1.76 % 3.52 % 4.38 % 5.63 %

1 Month T-Bills
0.02 % 0.03 % 0.05 % 1.26 % 2.41 %

Total Portfolio
3.74 % 11.31 % 11.32 % 6.86 % 7.82 %

Note: Time-weighted rates of return are calculated using the Daily Valuation method based on market rates of return. 59

CPI
0.18 % 1.32 % 1.83 % 2.07 % 2.25 %

Investment
Asset Allocation at Fair Value

Investment Summary
Asset Allocation as of June 30 (in percentages)
Equities Fixed Income Mutual and Common Collective Trust Funds and Separate Accounts Private Equity Total
Asset Allocation as of June 30 (in millions)
Equities Fixed Income Mutual and Common Collective Trust Funds and Separate Accounts Private Equity Total

2015
65.3% 27.2
7.2 0.3

2014 2013

67.2 68.1

25.6 25.0

7.1

6.9

0.1

--

2012
65.9 27.3
6.8 --

2011
67.2 26.2
6.6 --

2010
59.4 34.1
6.5 --

100%

100 100

100

100

100

2015
$ 10,915 4,543 1,204 52

2014
11,372 4,314 1,209
22

2013
10,374 3,811 1,057 --

2012
9,600 3,972
995 --

2011
10,060 3,902 992 --

2010
7,870 4,506
867 --

$ 16,714 16,917 15,242 14,567 14,954 13,243

60

Investment
Schedule of Fees and Commissions
For the Year Ended June 30, 2015
Investment Advisors' Fees:* U.S. Equity International Equity Fixed Income
Investment Commissions: U.S. Equity International Equity
Transaction Fees: Miscellaneous:*
Total Fees and Commissions

*A portion of these amounts are included in total investment expenses shown on page 56.

Twenty Largest Equity Holdings
As of June 30, 2015

Shares
1,689,826 3,062,394 1,565,813 1,167,960
207,361 1,749,243 1,375,688 2,741,694 1,097,688 1,839,192
863,919 3,111,870
585,500 901,900 1,018,200 3,763,973 2,038,924 1,560,790 371,741 1,666,019

Company
Apple Inc. Microsoft Corp. Exxon Mobil Corp. Johnson & Johnson Google Inc. Wells Fargo & Co. JPMorgan Chase & Co. Pfizer Inc. Procter & Gamble Co. Verizon Communications Inc. Chevron Corp. General Electric Co. Berkshire Hathaway Inc. Facebook, Inc. Visa Inc. Bank of America Corp. Intel Corp. Coca Cola Co. International Business Machines Corp. AT&T Inc.
Top 20 Equities Remaining Equities

Total Equities

A complete listing is available upon written request, subject to restrictions of O.C.G.A. Section 47-1-14. 61

$

3,385,606

3,635,882

--

1,369,511 3,216,469
417,009 15,352,884

$

27,377,361

Fair Value $ 211,946,426
135,204,695 130,275,642 113,829,382 110,104,038
98,377,426 93,216,619 91,929,000 85,883,109 85,724,739 83,342,266 82,682,386 79,692,405 77,351,454 68,372,130 64,062,820 62,013,873 61,229,792 60,467,391 59,176,995
$ 1,854,882,588 9,060,251,306
$ 10,915,133,894

Investment
Fixed Income Holdings*
As of June 30, 2015

Issuer
US TREAS. NOTE US TREAS. NOTE US TREAS. NOTE GENERAL ELECTRIC CO US TREAS. NOTE US TREAS. BOND US TREAS. BOND EMC CORP US TREAS. NOTE GENERAL ELECTRIC CAP CORP US TREAS. NOTE US TREAS. NOTE US TREAS. NOTE US TREAS. NOTE SHELL INTERNATIONAL FIN PROCTER & GAMBLE CO BP CAPITAL MARKETS CISCO SYSTEMS INC GENERAL ELECTRIC CAP CORP ANHEUSER-BUSCH COMCAST-NBC EXXON MOBIL CORP JPMORGAN CHASE & CO PRAXAIR INC PRAXAIR INC MICROSOFT CORP US TREAS. NOTE MICROSOFT CORP UNITED PARCEL SERVICE WALT DISNEY COMPANY ONTARIO (PROVINCE OF) ROYAL BANK OF CANADA AT&T INC US TREAS. NOTE INTEL CORP SCHLUMBERGER INVESTMENT WAL-MART STORES INC COCA COLA CO PFIZER INC MICROSOFT CORP GENERAL ELECTRIC CAP CORP GENERAL ELECTRIC CAP CORP ILLINOIS TOOL WORKS INC ILLINOIS TOOL WORKS INC COCA COLA CO US TREAS. NOTE US TREAS. NOTE US TREAS. NOTE MICROSOFT CORP

Year of Maturity
2024 2017 2021 2022 2024 2028 2039 2020 2017 2026 2019 2019 2019 2016 2018 2018 2020 2017 2018 2017 2018 2019 2017 2019 2018 2025 2021 2015 2021 2017 2017 2017 2017 2022 2021 2021 2016 2018 2018 2035 2020 2016 2019 2017 2020 2019 2022 2022 2017

ERS Fixed Income Securities Defined Contribution Fixed Income Securities

Total ERS and Defined Contribution Fixed Income Securities

Interest Rate
2.2500 1.8750 2.1250 2.7000 2.3750 5.2500 3.5000 2.6500 3.1250 5.5500 1.6250 1.6250 1.6250 0.8750 1.9000 1.6000 2.5210 1.1000 1.6250 1.1250 1.6620 1.8190 1.2500 1.9000 1.2000 2.7000 3.1250 1.6250 3.1250 1.1250 1.1000 1.1700 1.4000 1.6250 3.3000 3.3000 2.8000 1.6500 1.5000 3.5000 3.2500 1.4500 1.9500 0.9000 2.4500 1.0000 1.7500 1.7500 0.8750

*A complete listing is available upon written request, subject to restrictions of O.C.G.A. Section 47-1-14. 62

Par Value

$

309,000,000

254,000,000

155,000,000

145,000,000

136,000,000

102,000,000

115,000,000

112,000,000

108,000,000

92,000,000

102,000,000

102,000,000

97,000,000

97,000,000

96,000,000

96,000,000

96,000,000

96,000,000

96,000,000

96,000,000

96,000,000

96,000,000

96,000,000

96,000,000

96,000,000

97,000,000

79,000,000

83,000,000

77,000,000

77,000,000

77,000,000

77,000,000

77,000,000

64,000,000

59,000,000

58,000,000

58,000,000

58,000,000

58,000,000

58,000,000

49,000,000

48,000,000

48,000,000

48,000,000

39,000,000

34,000,000

30,000,000

30,000,000

20,000,000

$ 4,385,000,000 85,000,000

$ 4,470,000,000

Fair Value

$

307,118,190

260,428,740

156,743,750

141,747,650

136,733,040

132,950,880

123,966,550

113,148,000

112,437,720

106,880,080

103,139,340

102,963,900

97,780,850

97,560,660

96,936,000

96,797,760

96,672,960

96,338,880

96,279,360

96,266,880

96,196,800

96,124,800

95,981,760

95,690,880

94,523,520

93,473,080

84,499,190

83,260,620

80,190,110

77,381,150

77,112,420

76,672,750

76,494,880

62,040,320

61,581,250

59,697,660

59,062,560

58,306,820

58,040,020

53,023,600

50,154,440

48,306,720

48,241,920

48,031,200

39,581,490

33,410,440

29,477,400

29,456,400

19,955,800

$ 4,458,861,190 84,567,500

$ 4,543,428,690

Actuarial Section

ERS

GMPF

GJRS

ERSGA

LRS

PSR

GDCP

PSERS

E RSGA
Employees' Retirement System of Georgia
Serving those who serve Georgia

Actuarial

ERS
April 16, 2015
Board of Trustees Employees' Retirement System of Georgia Two Northside 75, Suite 300 Atlanta, GA 30318-7701
Attn: Mr. James Potvin, Executive Director
Members of the Board:
Section 47-2-26 of the law governing the operation of the Employees' Retirement System of Georgia provides that the actuary shall make annual valuations of the contingent assets and liabilities of the Retirement System on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2014. The report indicates that annual employer contributions at the rate of 19.94% of compensation for Old Plan Members, 24.69% of compensation for New Plan Members, and 21.69% of compensation for GSEPS Members for the fiscal year ending June 30, 2017 are sufficient to support the benefits of the System.
In preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report.
In our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2014 session of the General Assembly.
The System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for funding purposes meet the parameters set for the disclosures presented in the financial section by Governmental Accounting Standards Board (GASB) Statement No. 27. The funding objective of the plan is that contribution rates over time will remain level as a percent of payroll. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a level percent of payroll. Gains and losses are reflected in the total unfunded accrued liability which is being amortized on a level dollar basis in accordance with the funding policy adopted by the Board.

3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700 Fax (678) 388-1730 www.CavMacConsulting.com
Effective this fiscal year, the Plan was required to comply with the financial reporting requirements of GASB Statement No. 67. The necessary disclosure information has been provided in a separate supplemental report.
The System is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated.
This is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the System and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System.
Future actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein.

Edward A. Macdonald, ASA, FCA MAAA President

Sincerely yours,
Edward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary
64

Cathy Turcot Principal and Managing Director

Actuarial

PSERS
April 16, 2015
Board of Trustees Georgia Public School Employees Retirement System Two Northside 75, Suite 300 Atlanta, GA 30318-7701
Attn: Mr. James Potvin, Executive Director
Members of the Board:
Section 47-4-60 of the law governing the operation of the Georgia Public School Employees Retirement System provides that the employer contribution shall be actuarially determined and approved by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2014. Based on a monthly benefit accrual rate of $14.75, the valuation indicates that annual employer contributions of $26,277,000 or $727.97 per active member for the fiscal year ending June 30, 2017 are sufficient to support the benefits of the System.
The results of the valuation reflect that the Board did not grant the anticipated cost-of-living increases (COLAs) to retired members on July 1, 2014 and on January 1, 2015.
In preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report.
In our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2014 session of the General Assembly.
The System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for funding purposes meet the parameters set for the disclosures presented in the financial section by Governmental Accounting Standards Board (GASB) Statement No. 27. The funding objective of the plan is that contribution rates over time will remain level as a dollar per active member. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a dollar per active member. Gains and losses are reflected in the total unfunded accrued liability which is being amortized as a level dollar per active member in accordance with the funding policy adopted by the Board.

3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700 Fax (678) 388-1730 www.CavMacConsulting.com
Effective this fiscal year, the Plan will be required to comply with the financial reporting requirements of GASB Statement No. 67. The necessary disclosure information has been provided in a separate supplemental report.
The System is currently being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is currently operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated.
This is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the System and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System.
Future actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein.

Edward A. Macdonald, ASA, FCA MAAA President

Sincerely yours,
Edward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary
65

Cathy Turcot Principal and Managing Director

Actuarial

GJRS
April 16, 2015
Board of Trustees Georgia Judicial Retirement System Two Northside 75, Suite 300 Atlanta, GA 30318-7701
Attn: Mr. James Potvin, Executive Director
Members of the Board:
Section 47-23-21 of the law governing the operation of the Georgia Judicial Retirement System provides that the actuary shall make annual valuations of the contingent assets and liabilities of the Retirement System on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2014. The report indicates that annual employer contributions at the rate of 10.48% of compensation for the fiscal year ending June 30, 2017 are sufficient to support the benefits of the System.
In preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report.
In our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2014 session of the General Assembly.
The System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for funding purposes meet the parameters set for the disclosures presented in the financial section by Governmental Accounting Standards Board (GASB) Statement No. 27. The funding objective of the plan is that contribution rates over time will remain level as a percent of payroll. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a level percent of payroll. Gains and losses are reflected in the total unfunded accrued liability which is negative and being amortized as a level percent of payroll in accordance with the funding policy adopted by the Board.

3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700 Fax (678) 388-1730 www.CavMacConsulting.com
Effective this fiscal year, the Plan will be required to comply with the financial reporting requirements of GASB Statement No. 67. The necessary disclosure information has been provided in a separate supplemental report.
The System is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated.
This is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System.
Future actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein.

Edward A. Macdonald, ASA, FCA MAAA President

Sincerely yours,
Edward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary
66

Cathy Turcot Principal and Managing Director

Actuarial

LRS
April 16, 2015
Board of Trustees Legislative Retirement System of Georgia Two Northside 75, Suite 300 Atlanta, GA 30318-7701
Attn: Mr. James Potvin, Executive Director
Members of the Board:
Section 47-6-22 of the law governing the operation of the Georgia Legislative Retirement System provides that the actuary shall make periodic valuations of the contingent assets and liabilities of the Retirement System on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2014. The report indicates that no annual employer contributions for the fiscal year ending June 30, 2017 are required to support the benefits of the System.
The results of the valuation reflect that the Board did not grant the anticipated cost-of-living increases (COLAs) to retired members on July 1, 2014 and on January 1, 2015.
In preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report.
In our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2014 session of the General Assembly.
The System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for funding purposes meet the parameters set for the disclosures presented in the financial section by Governmental Accounting Standards Board (GASB) Statement No. 27. The funding objective of the plan is that contribution rates over time will remain level as a dollar per active member. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a level dollar per active member. Gains and losses are reflected in the total unfunded accrued liability which is negative and being amortized as a level dollar per active member in accordance with the funding policy adopted by the Board.

3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700 Fax (678) 388-1730 www.CavMacConsulting.com
Effective this fiscal year, the Plan will be required to comply with the financial reporting requirements of GASB Statement No. 67. The necessary disclosure information has been provided in a separate supplemental report.
The System is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated.
This is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System.
Future actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein.

Edward A. Macdonald, ASA, FCA MAAA President

Sincerely yours,
Edward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary
67

Cathy Turcot Principal and Managing Director

Actuarial

GMPF
April 16, 2015
Board of Trustees Georgia Military Pension Fund Two Northside 75, Suite 300 Atlanta, GA 30318-7701
Attn: Mr. James Potvin, Executive Director
Members of the Board:
Section 47-24-22 of the law governing the operation of the Georgia Military Pension Fund provides that the actuary shall make periodic valuations of the contingent assets and liabilities of the Pension Fund on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the Fund prepared as of June 30, 2014. The report indicates that annual employer contributions of $2,017,875 or $149.82 per active member for the fiscal year ending June 30, 2017 are sufficient to support the benefits of the Fund.
In preparing the valuation, the actuary relied on data provided by the Fund. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report.
In our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the Fund enacted through the 2014 session of the General Assembly.
The Fund is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the Fund and to reasonable expectations of anticipated experience under the Fund. The assumptions and methods used for funding purposes meet the parameters set for the disclosures presented in the financial section by Governmental Accounting Standards Board (GASB) Statement No. 27. The funding objective of the plan is that contribution rates over time will remain level as a dollar per active member. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a dollar per active member. Gains and losses are reflected in the total unfunded accrued liability which is being amortized as a level dollar per active member in accordance with the funding policy adopted by the Board.

3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700 Fax (678) 388-1730 www.CavMacConsulting.com
Effective this fiscal year, the Plan will be required to comply with the financial reporting requirements of GASB Statement No. 67. The necessary disclosure information has been provided in a separate supplemental report.
The Fund is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the Fund is operating on an actuarially sound basis. Assuming that contributions to the Fund are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the Fund may be safely anticipated.
This is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience is performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the Fund.
Future actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein.

Edward A. Macdonald, ASA, FCA MAAA President

Sincerely yours,
Edward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary
68

Cathy Turcot Principal and Managing Director

Actuarial

SEAD Pre-Retirement
April 16, 2015
Board of Trustees Employees' Retirement System of Georgia Two Northside 75, Suite 300 Atlanta, GA 30318-7701
Attention: Mr. James Potvin, Executive Director
Members of the Board:
Chapters 47-2 and 47-19 of the Code of Georgia which govern the operation of the Georgia Employees' Group Term Life Insurance Plan provide that the actuary shall make periodic valuations of the contingent assets and liabilities of the Insurance Plan on the basis of regular interest and the tables last adopted by the Board of Trustees. In this report, we have determined liabilities for life insurance benefits payable upon death in active service (PreRetirement).
We have submitted the report giving the results of the valuation of the Plan prepared as of June 30, 2014. The report indicates that employee contributions at the rate of 0.05% of active payroll for Old Plan members of the Employees' Retirement System, and 0.02% of active payroll for New Plan members of the Employees' Retirement System, members of the Legislative Retirement System and members of the Judicial Retirement System are sufficient to support the pre-retirement benefits of the Plan. No employer contribution is required for the fiscal year ending June 30, 2017 for pre-retirement benefits.
The funding method used for this valuation is the unit credit actuarial cost method with projected benefits. Gains and losses are reflected in the unfunded accrued liability. The actuarial assumptions used are in the aggregate reasonably related to the experience under the Plan and to reasonable expectations of anticipated experience under the Plan. In our opinion, the Plan is operating on an actuarially sound basis and the sufficiency of the funds to provide the benefits called for by the Plan may be safely anticipated.

3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700 Fax (678) 388-1730 www.CavMacConsulting.com
This is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the Plan.
Future actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein.

Edward A. Macdonald, ASA, FCA MAAA President

Sincerely yours,
Edward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary
69

Cathy Turcot Principal and Managing Director

Actuarial

SEAD Post-Retirement
April 16, 2015
Board of Trustees Employees' Retirement System of Georgia Two Northside 75, Suite 300 Atlanta, GA 30318-7701
Attention: Mr. James Potvin, Executive Director
Members of the Board:
Chapters 47-2 and 47-19 of the Code of Georgia which govern the operation of the Georgia Employees' Group Term Life Insurance Plan provide that the actuary shall make periodic valuations of the contingent assets and liabilities of the Insurance Plan on the basis of regular interest and the tables last adopted by the Board of Trustees. In this report, we have determined liabilities for life insurance benefits payable upon death after retirement (PostRetirement).
In accordance with GASB 43 and 45, we have determined the liabilities for life insurance benefits payable upon death after retirement. We have submitted the report giving the results of the valuation of the Plan prepared as of June 30, 2014. The report indicates, for post-retirement benefits, there is no employer annual required contribution for the fiscal year ending June 30, 2017.
The funding method used for this valuation is the unit credit actuarial cost method with projected benefits. Gains and losses are reflected in the unfunded accrued liability. The actuarial assumptions used are in the aggregate reasonably related to the experience under the Plan and to reasonable expectations of anticipated experience under the Plan. In our opinion, the Plan is operating on an actuarially sound basis and the sufficiency of the funds to provide the benefits called for by the Plan may be safely anticipated assuming future annual required contributions (ARC) are contributed when due.

3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700 Fax (678) 388-1730 www.CavMacConsulting.com
This is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the Plan.
Future actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein.

Edward A. Macdonald, ASA, FCA MAAA President

Sincerely yours,
Edward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary
70

Cathy Turcot Principal and Managing Director

Actuarial
Summary of Plan Provisions
ERS Please see Notes to Financial Statements, (2)(a), pages 23-24. PSERS Please see Notes to Financial Statements, (2)(b), page 24. LRS Please see Notes to Financial Statements, (2)(c), pages 24-25. GJRS Please see Notes to Financial Statements, (2)(d), pages 25-26. GMPF Please see Notes to Financial Statements, (2)(e), page 26. SEAD-Active Please see Notes to Financial Statements, (2)(f), pages 26-27. SEAD-OPEB Please see Notes to Financial Statements, (2)(g), page 27. The following Boards are responsible for establishing and maintaining the funding policies of the various defined benefit systems administered by ERSGA: Board of Trustees of the Employees' Retirement System: ERS, LRS, and GMPF Board of Trustees of the Public School Employees Retirement System: PSERS Board of Trustees of the Georgia Judicial Retirement System: GJRS Board of Directors of the State Employees Assurance Department: SEAD-Active and SEAD-OPEB ERS, PSERS, LRS, GJRS, and GMPF are all subject to the provisions of GASB Statement No. 67 (GASB 67); SEAD-Active and SEAD-OPEB are not. All of the systems covered under GASB 67 use the Entry Age Normal actuarial cost method for both funding and financial reporting purposes. This continues a long-standing practice for all of those systems and provides a point of consistency between the funding provisions and the new GASB 67 requirements. For all of the systems covered under GASB 67, the GASB 67 reports prepared as of June 30, 2015 were largely based on the data, assumptions, and results of the annual funding valuations as of June 30, 2014 (detailed in reports dated April 16, 2015). The Total Pension Liability (TPL) for each system, determined using the Entry Age Normal method, was then rolled forward to the June 30, 2015 measurement date. The Net Pension Liability for each system is equal to the rolled forward TPL less the market value of assets as of June 30, 2015. For the funding valuations as of June 30, 2014, the Actuarial Value of Assets is calculated using a five-year smoothing methodology, whereby excesses and shortfalls of actual investment income over or under the expected investment return will be recognized over the succeeding five-year periods. For the funding valuations, each system covered under GASB 67 utilizes a 7.5% assumed rate of return and a 7.5% discount rate for the calculation of the respective systems' liabilities. The Single Equivalent Interest Rate required under GASB 67 has also been determined to be 7.5% by the systems'actuaries.
71

Actuarial
The laws governing the Employees' Retirement System and the plans it administers require an actuary to perform an annual valuation of the soundness of the systems. In addition, the actuary must perform at least once every five years an actuarial investigation of the mortality, service, and compensation experience of the members and beneficiaries of the System. The latest valuation was performed as of June 30, 2014 based on actuarial assumptions approved by the Board during the last experience study on December 16, 2010.
The more pertinent facts and significant assumptions underlying the computations included in the June 30, 2014 reports are as follows:

Summary of Actuarial Assumptions

Valuation Date Actuarial Cost Method
Amortization Method
Amortization Period

ERS June 30, 2014
Entry age
Level dollar, closed 22.6 years

PSERS June 30, 2014
Entry age
Level dollar, closed 23.9 years

GJRS June 30, 2014
Entry age
Level percent of pay, closed 19.5 years

LRS June 30, 2014
Entry age
Level dollar, closed Infinite

GMPF June 30, 2014
Entry age
Level dollar, closed 19.0 years

Actuarial Asset Valuation Method
Investment Rate of Return Inflation Rate Projected Salary Increases COLA

The actuarial value of assets was based on the total fair value income of investments, with the excess or shortfall of actual investment income over or under the expected investment return smoothed over 5 years. One-fifth of the excess or shortfall is recognized each year for five years.

7.50% 3.00% 5.45-9.25% None

7.50% 3.00% n/a 1.50% Semi-annually

7.50% 3.00% 6.00% None

7.50% 3.00% n/a 3.0% Annually

7.50% 3.00% n/a None

Valuation Date Actuarial Cost Method
Amortization Method
Amortization Period
Actuarial Asset Valuation Method
Investment Rate of Return Inflation Rate Projected Salary Increases
ERS GJRS LRS COLA

SEAD (Active & OPEB)
June 30, 2014 Projected unit credit
Level dollar, closed
Infinite
Market Value of Assets
7.50% 3.00%
5.45-9.25% 6.00% 0.00 n/a

72

Actuarial
Summary of Actuarial Assumptions

Rates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability)

ERS

Representative values of the assumed annual rates of separation other than retirement for non-law enforcement officers are as follows. Special rates of separation apply to law enforcement officers.

Annual Rates of Death

Annual Rates of Disability

Age

Men Women Men Women

20

.035 % .019 % .05 %

.02 %

25

.038

.021

.05

.02

30

.044

.026

.05

.02

35

.077

.048

.05

.02

40

.108

.071

.25

.10

45

.151

.112

.50

.25

50

.214

.168

.75

.50

55

.362

.272

1.10

.82

60

.675

.506

--

--

65 1.274

.971

--

--

69 1.980

1.486

--

--

Annual Rates of Withdrawal Years of Service

0-4

5-9

10 & over

Age

Men

Women

Men

Women

Men

Women

20

31.00 % 31.00 %

--%

--%

--%

--%

25

26.00

24.00

17.00

19.00

--

--

30

22.50

21.00

12.00

13.00

7.50

7.75

35

21.00

19.50

10.00

10.50

7.00

6.75

40

19.00

17.50

9.50

9.00

5.00

4.50

45

18.00

15.50

9.00

8.00

3.75

3.50

50

15.50

15.00

7.00

7.00

3.75

3.50

55

13.00

12.50

6.50

6.50

4.00

4.00

60

15.00

12.50

7.00

6.50

--

--

65

15.00

17.00

9.50

10.00

--

--

73

PSERS

Actuarial

Annual Rates of Death

Annual Rate of Disability

Age

Men

Women

Both

20

.036 % .019 %

--%

25

.038

.021

--

30

.050

.026

--

35

.084

.048

--

40

.114

.071

.01

45

.162

.112

.04

50

.245

.168

.09

55

.420

.272

.23

60

.778

.506

.35

65

1.441

.971

--

Annual Rates of Withdrawal Years of Service

0-4

5-9

10 & over

Age

Men

Women

Men

Women

Men

Women

20

35.00 % 34.00 %

--%

--%

--%

--%

25

30.00

29.00

17.00

19.00

--

--

30

27.00

24.00

16.00

15.00

14.00

11.00

35

24.00

20.00

14.00

13.00

9.00

10.00

40

21.00

17.00

12.00

12.00

7.00

8.00

45

20.00

16.00

11.00

10.00

6.50

7.00

50

18.00

14.00

11.00

9.00

6.50

6.50

55

15.00

12.00

9.00

8.00

6.00

6.00

60

13.00

11.00

9.00

7.00

--

--

74

Actuarial
GJRS

Withdrawal

Annual Rates of Death

Disability

Age

Both

Men

Women

Both

20

8.0 %

.035 %

.019 %

.05 %

25

8.0

.038

.021

.05

30

8.0

.044

.026

.10

35

8.0

.077

.048

.15

40

8.0

.108

.071

.20

45

4.0

.151

.112

.35

50

3.0

.214

.168

.50

55

3.0

.362

.272

.90

60

3.0

.675

.506

1.45

65

3.0

1.274

.971

2.35

LRS

Withdrawal

Age

Both

Annual Rates of

Death

Men

Women

Disability Both

20

6.0 %

.035 %

.019 %

.1 %

25

6.0

.038

.021

.1

30

6.0

.044

.026

.2

35

6.0

.077

.048

.3

40

6.0

.108

.071

.4

45

7.5

.151

.112

.7

50

8.5

.214

.168

1.0

55

10.0

.362

.272

1.8

60

10.0

.675

.506

2.9

65

10.0

1.274

.971

--

GMPF

Rates of Withdrawal from Active Service

Service

Rates

10 or less

17.5 %

11-13

15.0

14-19

9.5

20 or more

14.5

Age

Rates of Death

Men

Women

25

.038 %

.021 %

30

.044

.026

35

.077

.048

40

.108

.071

45

.151

.112

50

.214

.168

55

.362

.272

60

.675

.506

75

Actuarial
SEAD-Active and SEAD-OPEB
Age 20 25 30 35 40 45 50 55 60 65 69

All Groups Annual Rates of Death

Men

Women

ERS

Annual Rates of Disability

Men

Women

.035 % .019 % .05 % .02 %

.038

.021

.05

.02

.044

.026

.05

.02

.077

.048

.05

.02

.108

.071

.25

.10

.151

.112

.50

.25

.214

.168

.75

.50

.362

.272

1.10

.82

.675

.506

--

--

1.274

.971

--

--

1.980

1.486

--

--

LRS Annual Rates of
Disability Both .1 % .1 .2 .3 .4 .7 1.0 1.8 2.9 -- --

GJRS Annual Rates of
Disability Both
.05 % .05 .10 .15 .20 .35 .50 .90 1.45 2.35 --

ERS

LRS

GJRS

Annual Rates of Withdrawal Years of Service

Annual Rates of Withdrawal

Annual Rates of Withdrawal

0-4

5-9

10 & over

Age

Men

Women

Men

Women

Men

Women

Both

Both

20

31.00 % 31.00 %

--%

--%

--%

--%

6.00 %

8.00 %

25

26.00

24.00

17.00

19.00

--

--

6.00

8.00

30

22.50

21.00

12.00

13.00

7.50

7.75

6.00

8.00

35

21.00

19.50

10.00

10.50

7.00

6.75

6.00

8.00

40

19.00

17.50

9.50

9.00

5.00

4.50

6.00

8.00

45

18.00

15.50

9.00

8.00

3.75

3.50

7.50

4.00

50

15.50

15.00

7.00

7.00

3.75

3.50

8.50

3.00

55

13.00

12.50

6.50

6.50

4.00

4.00

10.00

3.00

60

15.00

12.50

7.00

6.50

--

--

10.00

3.00

65

15.00

17.00

9.50

10.00

--

--

10.00

3.00

76

Actuarial
Annual Rates of Retirement
ERS

Early Retirement

Age

Men

Women

55

3.0 %

4.0 %

56

3.5

6.0

57

4.0

6.0

58

5.0

6.0

59

6.0

6.0

60

--

--

62

--

--

64

--

--

66

--

--

68

--

--

70

--

--

75

--

--

Old Plan

Age 60 or 30 years

34 years

Men 11.5 %

Women 9.0 %

Men 100.0 %

Women 100.0 %

12.0

11.0

100.0

100.0

12.0

13.0

100.0

100.0

13.0

15.0

95.0

95.0

16.0

16.0

95.0

95.0

17.0

20.0

95.0

95.0

37.0

40.0

90.0

90.0

20.0

30.0

90.0

90.0

30.0

35.0

30.0

35.0

20.0

25.0

20.0

25.0

45.0

35.0

45.0

35.0

100.0

100.0

100.0

100.0

More than 34 years

Men 90.0 %

Women 90.0 %

70.0

70.0

70.0

70.0

70.0

70.0

70.0

70.0

50.0

60.0

50.0

60.0

15.0

60.0

30.0

35.0

20.0

25.0

45.0

35.0

100.0

100.0

New Plan and GSEPS

Early Retirement

Normal Retirement*

Age

Men

Women

Men

Women

55

10.0 %

8.0 %

50.0 %

40.0 %

56

10.0

8.0

50.0

40.0

57

10.0

9.0

50.0

40.0

58

10.0

10.0

30.0

40.0

59

10.0

15.0

30.0

40.0

60

--

--

17.0

20.0

62

--

--

38.0

36.0

64

--

--

25.0

28.0

66

--

--

35.0

35.0

68

--

--

20.0

25.0

70

--

--

20.0

25.0

75

--

--

100.0

100.0

*An additional 10% of active New Plan and GSEPS members less than age 60 are expected to retire in the year in which they attain 30 years of service.

77

PSERS GJRS LRS GMPF

Actuarial
Age 60 61 62 63 64 65 66 67

Annual Rate of Retirement 15 % 15 22 18 18 28 25 25

Age 68 69 70 71 72 73 74 75 & over

Annual Rate of Retirement 25 % 25 25 25 25 25 25
100

Age 60 61-64 65-66 67-69 70-74 75

Annual Rate of Retirement 12 % 12 15 20 30 100

Age

Annual Rate of Retirment

Age

Annual Rate of Retirement

60 - 69

10 %

73

70

35

74

25 % 40

71

15

75

100

72

15

--

--

Age 60 61 62 63 64 65 & over

Annual Rate of Retirement 65.0 % 65.0 65.0 65.0 65.0 100.0

78

Actuarial
SEAD-Active and SEAD-OPEB ERS Members

Old Plan

Early Retirement

Age 60 or 30 years

34 years

Age

Men

Women

Men

Women

Men

Women

55

3.0 %

4.0 %

11.5 %

9.0 % 100.0 %

100.0 %

56

3.5

6.0

12.0

11.0

100.0

100.0

57

4.0

6.0

12.0

13.0

100.0

100.0

58

5.0

6.0

13.0

15.0

95.0

95.0

59

6.0

6.0

16.0

16.0

95.0

95.0

60

--

--

17.0

20.0

95.0

95.0

62

--

--

37.0

40.0

90.0

90.0

64

--

--

20.0

30.0

90.0

90.0

66

--

--

30.0

35.0

30.0

35.0

68

--

--

20.0

25.0

20.0

25.0

70

--

--

45.0

35.0

45.0

35.0

More than 34 years

Men

Women

90.0 %

90.0 %

70.0

70.0

70.0

70.0

70.0

70.0

70.0

70.0

50.0

60.0

50.0

60.0

15.0

60.0

30.0

35.0

20.0

25.0

45.0

35.0

New Plan and GSEPS

Early Retirement

Normal Retirement*

Age

Men

Women

Men

Women

55

10.0 %

8.0 %

50.0 %

40.0 %

56

10.0

8.0

50.0

40.0

57

10.0

9.0

50.0

40.0

58

10.0

10.0

30.0

40.0

59

10.0

15.0

30.0

40.0

60

--

--

17.0

20.0

62

--

--

38.0

36.0

64

--

--

25.0

28.0

66

--

--

35.0

35.0

68

--

--

20.0

25.0

70

--

--

20.0

25.0

*An additional 10% of active New Plan and GSEPS members less than age 65 are expected to retire in the year in which they attain 30 years of service.

LRS Members

Age

Annual Rate of Retirement

Age

Annual Rate of Retirement

60 - 69

10 %

73

70

35

74

25 % 40

71

15

75

100

72

15

--

--

79

Actuarial
SEAD-Active and SEAD-OPEB GJRS Members

Age 60-64 65-66 67-69 70-74 75

Annual Rates of Retirement 12 % 15 20 30 100

80

Actuarial
Annual Rates of Death After Retirement
For all plans except PSERS, the RP-2000 Combined Mortality Table is used for the period after retirement and for dependent beneficiaries. The RP-2000 Disabled Mortality Table set back eleven years for males is used for the period after disability retirement. For PSERS, the RP-2000 Combined Table set forward one year for males is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table set back two years for males and set forward one year for females is used for the period after disability retirement. For all plans, there is a margin for future mortality improvement in the tables used by the Systems.

ERS

Age

Men

Women

Age

Men

Women

40

.108 %

.071 %

65

1.274 %

.971 %

45

.151

.112

70

2.221

1.674

50

.214

.168

75

3.783

2.811

55

.362

.272

80

6.437

4.588

60

.675

.506

85

11.076

7.745

PSERS

Age

Men

Women

Age

Men

Women

40

.114 %

.071 %

65

1.441 %

.971 %

45

.162

.112

70

2.457

1.674

50

.245

.168

75

4.217

2.811

55

.420

.272

80

7.204

4.588

60

.768

.506

85

12.280

7.745

GJRS

Age

Men

Women

Age

Men

Women

40

.108 %

.071 %

65

1.274 %

.971 %

45

.151

.112

70

2.221

1.674

50

.214

.168

75

3.783

2.811

55

.362

.272

80

6.437

4.588

60

.675

.506

85

11.076

7.745

LRS

Age

Men

Women

Age

Men

Women

40

.108 %

.071 %

65

1.274 %

.971 %

45

.151

.112

70

2.221

1.674

50

.214

.168

75

3.783

2.811

55

.362

.272

80

6.437

4.588

60

.675

.506

85

11.076

7.745

81

Actuarial
GMPF Age
40 45 50 55 60
SEAD-OPEB Age
40 45 50 55 60

Men .108 % .151 .214 .362 .675
Men .108 % .151 .214 .362 .675

Women .071 % .112 .168 .272 .506
Women .071 % .112 .168 .272 .506

Age

Men

Women

65

1.274 %

.971 %

70

2.221

1.674

75

3.783

2.811

80

6.437

4.588

85

11.076

7.745

Age

Men

Women

65

1.274 %

.971 %

70

2.221

1.674

75

3.783

2.811

80

6.437

4.588

85

11.076

7.745

82

Actuarial
Active Members
ERS
Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Active Members
72,716 74,089 73,985 75,293 71,272 68,566 66,081 63,942 61,550 60,486

Annual Payroll (in thousands)

$

2,514,430

2,630,167

2,680,972

2,809,199

2,674,155

2,571,042

2,486,780

2,414,884

2,335,773

2,315,625

Average Pay

$

34,579

35,500

36,237

37,310

37,520

37,497

37,632

37,767

37,949

38,284

Change
2.0 % 2.7 2.1 3.0 0.6 (0.1) 0.4 0.4 0.5 0.9

PSERS PSERS is not a compensation based plan.

Year
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Active Members
36,704 37,587 39,086 40,121 40,581 39,962 39,249 38,654 37,361 36,096

GJRS

Year
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Active Members
468 478 480 482 502 495 507 503 506 513

Annual Payroll (in thousands) Average Pay

$

42,916 $ 91,701

45,308

94,787

48,621

101,294

51,102

106,021

52,083

103,751

51,293

103,622

52,331

103,216

51,898

103,177

52,807

104,362

53,628

104,539

Change
1.1 % 3.4 6.9 4.7 (2.1) (0.1) (0.4) (0.0) 1.1 0.2

LRS LRS is not a compensation based plan.

Year
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Active Members
217 218 218 218 218 216 218 220 223 222

83

Actuarial
GMPF
GMPF is not a compensation based plan.

Year
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Active Members
8,870 10,320 12,017 11,623 12,019 13,032 13,776 13,526 13,573 13,469

SEAD-Active and SEAD-OPEB
SEAD-Active and SEAD-OPEB began in 2007.

Year
2008 2009 2010 2011 2012 2013 2014

Active Members
75,859 69,745 62,305 55,516 49,261 43,512 39,101

Note: Payroll data for FY14 may not equal that wich is presented in the Financial section in the Schdules of Employers'and Nonemployers'Contributions on pages 43-44. Valuation data at that time was a snapshot of the valuation date, annualized for new hires, but does not include those who terminated during the year.

84

Actuarial
Member and Employer Contribution Rates
ERS

Year
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Member
1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25%

* Old Plan Rate includes an employer pick-up of employee contributions. ** GSEPS Plan began on January 1, 2009

Old Plan*
10.41% 10.41% 10.41% 10.41% 10.41% 10.41% 11.63% 14.90% 18.46% 21.96%

Employer Rates
New Plan
10.41% 10.41% 10.41% 10.41% 10.41% 10.41% 11.63% 14.90% 18.46% 21.96%

GSEPS**
n/a n/a n/a 6.54% 6.54% 6.54% 7.42% 11.54% 15.18% 18.87%

PSERS

Year
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Pre 7/1/12 Member
$ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year

Post 7/1/12 Member
$ 90 per year $ 90 per year $ 90 per year

Employer

$

3,638,000

6,484,000

2,866,000

5,680,000

5,529,000

7,509,000

15,884,000

24,829,000

27,160,000

28,461,000

GJRS LRS

Year
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Member
7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50%

Employer
3.85% 3.85% 3.85% 3.85% 3.85% 3.85% 3.90% 3.90% 4.23% 6.98%

Year
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Member
8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50%

Employer

$

54,000

62,000

73,000

71,000

75,000

75,000

75,000

128,000

45,000

0

85

Actuarial
GMPF

SEAD-Active*

Year
2008 2009 2010 2011 2012 2013 2014 2015

SEAD-OPEB*

Year
2008 2009 2010 2011 2012 2013 2014 2015

*SEAD-Active and SEAD-OPEB began in 2007.

Year
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Member
n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

Employer

$

891,000

1,005,000

1,103,000

1,323,000

1,434,000

1,282,000

1,521,000

1,703,000

1,892,000

1,893,369

Member - Old Plan
0.05% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05%

Member - New Plan, LRS, GJRS
0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02%

Employer
0% 0% 0% 0% 0% 0% 0% 0%

Member - Old Plan
0.45% 0.45% 0.45% 0.45% 0.45% 0.45% 0.45% 0.45%

Member - New Plan, LRS, GJRS
0.23% 0.23% 0.23% 0.23% 0.23% 0.23% 0.23% 0.23%

Employer
0% 0% 0% 0% 0.61% 0.27% 0% 0%

86

Actuarial
Schedules of Funding Progress - Defined Benefit Pension Plans
(In thousands)
87

Employees' Retirement System Public School Employees Retirement System Legislative Retirement System Georgia Judicial Retirement System

Actuarial valuation
date
6/30/2005 6/30/2006 6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014
6/30/2005 6/30/2006 6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014
6/30/2005 6/30/2006 6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014
6/30/2005 6/30/2006 6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014

Actuarial value of plan assets
(a)
$ 13,134,472 13,461,132 13,843,689 14,017,346 13,613,606 13,046,193 12,667,557 12,260,595 12,129,804 12,376,120
753,767 766,277 785,460 791,855 769,618 737,406 719,601 710,915 727,268 765,450
28,462 29,172 30,049 30,706 30,303 29,581 29,278 28,990 29,481 30,538
264,924 279,564 297,090 313,315 317,624 320,050 327,483 335,225 351,889 373,560

Actuarial accrued liablility (AAL) entry age (b)
13,512,773 14,242,845 14,885,179 15,680,857 15,878,022 16,295,352 16,656,905 16,777,922 16,982,449 16,991,963
671,040 691,651 746,078 770,950 823,232 875,396 885,927 895,324 910,256 924,365
23,531 23,407 24,357 24,454 23,523 25,003 25,245 24,966 24,904 24,913
213,060 229,837 249,278 268,516 282,474 281,496 290,486 308,862 335,792 343,428

Unfunded AAL/ (funded excess)
(b-a)
378,301 781,713 1,041,490 1,663,511 2,264,416 3,249,159 3,989,348 4,517,327 4,852,645 4,615,843
(82,727) (74,626) (39,382) (20,905)
53,614 137,990 166,326 184,409 182,988 158,915
(4,931) (5,765) (5,692) (6,252) (6,780) (4,578) (4,033) (4,024) (4,577) (5,624)
(51,864) (49,727) (47,812) (44,799) (35,150) (38,554) (36,997) (26,363) (16,097) (30,132)

Funded ratio (a/b)
97.2 % 94.5 93.0 89.4 85.7 80.1 76.0 73.1 71.4 72.8
112.3 110.8 105.3 102.7 93.5 84.2 81.2 79.4 79.9 82.8
121.0 124.6 123.4 125.6 128.8 118.3 116.0 116.1 118.4 122.6
124.3 121.6 119.2 116.7 112.4 113.7 112.7 108.5 104.8 108.8

Annual covered payroll
(c)
$ 2,514,430 2,630,167 2,680,972 2,809,199 2,674,155 2,571,042 2,486,780 2,414,884 2,335,773 2,315,625
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
3,586 3,602 3,688 3,778 3,780 3,745 3,780 3,815 3,867 3,850
42,916 45,308 48,621 51,102 52,083 51,293 52,331 51,898 52,807 53,628

Unfunded AAL/ (funded excess) as percentage of covered payroll
[(b-a)/c]
15.0 % 29.7 38.8 59.2 84.7 126.4 160.4 187.1 207.8 199.3
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
(137.5) (160.0) (154.3) (165.5) (179.4) (122.2) (106.7) (105.5) (118.4) (146.1)
(120.9) (109.8)
(98.3) (87.7) (67.5) (75.2) (70.7) (50.8) (30.5) (56.2)

Actuarial
Schedules of Funding Progress - Defined Benefit Pension Plans
(In thousands)
88

Georgia Military Pension Fund

Actuarial valuation
date
6/30/2005 6/30/2006 6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014

Actuarial value of plan assets
(a)

$

2,176

3,100

4,165

5,269

6,413

7,558

8,702

10,087

12,131

14,264

Actuarial accrued liability (AAL) entry-age
(b)
14,454 17,625 19,887 19,124 21,021 23,773 26,767 28,231 30,056 31,815

Unfunded AAL/ (funded excess)
(b-a)
12,278 14,525 15,722 13,855 14,608 16,215 18,065 18,144 17,925 17,551

Funded ratio (a/b)
15.1 % 17.6 20.9 27.6 30.5 31.8 32.5 35.7 40.4 44.8

This data, except for annual covered payroll, was provided by the System's actuary.
No statistics regarding covered payroll are available. Contributions are not based on members'salaries, but are simply $4.00 per month, per member for nine months each fiscal year if hired prior to July 1,2012 and $10 per month, per member for nine months if hired after July 1, 2012. No statistics regarding covered payroll are available. Active and inactive plan member information is maintained by the Georgia Department of Defense.

Annual covered payroll
(c)
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Unfunded AAL/ (funded excess) as percentage of covered payroll
[(b-a)/c]
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

See accompanying notes to required supplementary schedules and accompanying independent auditors'report.
Note: Payroll data for FY14 may not equal that wich is presented in the Financial section in the Schdules of Employers'and Nonemployers'Contributions on pages 43-44. Valuation data at that time was a snapshot of the valuation date, annualized for new hires, but does not include those who terminated during the year.

Actuarial
Schedule of Retirees Added to and Removed from Rolls
ERS

Year Ended
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Added to Rolls

Removed from Rolls

Roll End of Year

Number
n/a 2,338 2,410 2,422 2,444 2,665 2,797 2,956 3,664 2,440

Annual Allowances (in thousands)

$

n/a

84,982

114,719

82,644

85,329

70,383

69,031

71,464

88,855

51,178

Number
n/a 854 1,075 1,017 1,055 1,051 1,170 1,305 1,176 1,059

Annual Allowances (in thousands)

$

n/a

16,270

20,598

21,299

20,194

22,413

25,347

27,696

26,334

22,997

Number
31,355 32,839 34,174 35,579 36,968 38,582 40,209 41,860 44,348 45,729

Annual Allowances (in thousands)

$

773,445

842,157

936,278

997,623

1,062,758

1,110,728

1,154,412

1,198,180

1,260,701

1,288,882

% Increase in Annual Allowance
n/a % 8.9 11.2 6.6 6.5 4.5 3.9 3.8 5.2 2.2

Average Annual Allowances
$ 24,667 25,645 27,397 28,040 28,748 28,789 28,710 28,624 28,427 28,185

PSERS

Year Ended
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Added to Rolls

Removed from Rolls

Roll End of Year

Number
n/a 870 816 899 886 1,001 1,174 1,133 1,298 1,345

Annual Allowances (in thousands)

Number

$

n/a n/a

4,835 531

4,749 637

4,514 605

5,290 575

4,494 642

3,168 731

3,192 684

3,803 650

3,749 647

Annual Allowances (in thousands)

Number

$

n/a 12,675

1,885 13,014

2,353 13,193

2,371 13,487

2,260 13,798

2,666 14,157

3,072 14,600

2,834 15,049

2,738 15,697

2,604 16,395

Annual Allowances (in thousands)

$

41,316

44,266

46,662

48,805

51,835

53,663

53,759

54,117

55,182

56,327

% Increase in Annual Allowance
n/a % 7.1 5.4 4.6 6.2 3.5 0.2 0.7 2.0 2.1

Average Annual Allowances
$ 3,260 3,401 3,537 3,619 3,757 3,791 3,682 3,596 3,515 3,436

GJRS

Year Ended
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Added to Rolls

Removed from Rolls

Roll End of Year

Number
n/a 5 13 14 29 16 15 22 42 23

Annual Allowances (in thousands)

Number

$

n/a n/a

144

14

853

7

902

7

2,238

6

933

10

1,168

2

1,732

8

2,763

13

1,175

9

Annual Allowances (in thousands)

Number

$

n/a 174

687 165

297 171

410 178

191 201

508 207

105 220

405 234

629 263

326 277

Annual Allowances (in thousands)

$

9,460

8,917

9,473

9,965

12,012

12,437

13,500

14,827

16,961

17,810

% Increase in Annual Allowance
n/a % (5.7) 6.2 5.2 20.5 3.5 8.5 9.8 14.4 5.0

Average Annual Allowances
$ 54,368 54,042 55,398 55,983 59,761 60,082 61,364 63,363 64,490 64,296

89

Actuarial
LRS

Year Ended
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Added to Rolls

Removed from Rolls

Roll End of Year

Number
n/a 13 17 13 10 10 18 10 32 6

Annual Allowances (in thousands)

Number

$

n/a n/a

103

21

151

9

130

11

117

7

106

3

104

10

66

11

200

15

30

7

Annual Allowances (in thousands)

Number

$

n/a 224

165 216

74 224

100 226

54 229

36 236

86 244

82 243

140 260

61 259

Annual Allowances (in thousands)

$

1,594

1,532

1,609

1,639

1,702

1,772

1,790

1,774

1,834

1,803

% Increase in Annual Allowance
n/a % (3.9) 5.0 1.9 3.8 4.1 1.0 (0.9) 3.4 (1.7)

Average Annual Allowances
$ 7,116 7,093 7,183 7,252 7,432 7,508 7,336 7,300 7,054 6,961

GMPF

Year Ended
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Added to Rolls

Removed from Rolls

Roll End of Year

Number
n/a 61 73 71 85 92 94 95 83 62

Annual Allowances (in thousands)

Number

$

n/a n/a

69

1

83

1

76

2

91

3

100

1

101

3

106

3

87

5

68

5

Annual Allowances (in thousands)

Number

$

n/a 103

1 163

1 235

2 304

4 386

1 477

4 568

3 660

5 738

6 795

Annual Allowances (in thousands)

$

110

178

260

334

421

520

617

720

802

864

% Increase in Annual Allowance
n/a % 61.8 46.1 28.5 26.0 23.5 18.7 16.7 11.4 7.7

Average Annual Allowances
$ 1,068 1,092 1,106 1,099 1,091 1,090 1,086 1,091 1,087 1,087

SEAD-Active and SEAD-OPEB are life insurance plans which do not have annuity payments.

90

Actuarial
Analysis of Change in Unfunded Accrued Liability (UAL)
91

ERS
Interest (7.50) added to previous UAL
Accrued liability contribution
Experience: Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Salary increases Method changes Amendments (COLAs) Assumption changes Lawsuit Programming modification Data changes Misc. changes
Total
PSERS
Interest (7.50) added to previous UAL
Accrued liability contribution
Experience: Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Salary increases Method changes Amendments No COLAs Assumption changes Lawsuit Data changes Allotment for expenses Misc. changes
Total

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

Amount of Increase (Decrease) (in Millions)

$

363.9 $

338.8 $

299.2 $

243.7 $

169.8 $

124.8 $

78.1 $

(321.7)

(239.1)

(147.7)

(122.9)

(89.4)

(99.7)

(86.3)

(228.9) 60.4 45.5 9.3
(159.4) 0.0 0.0 0.0 0.0 0.0 (6.0) 0.1

253.7 20.6
103.7 14.1 (46.8)
(128.3) 0.0 0.0 0.0 0.0
18.7 (0.1)

396.3 15.5 93.8 12.1 (74.2) 0.0
(118.8) 0.0 0.0
26.3 12.9 12.6

$

(236.8) $

335.3 $

528.0 $

433.6 16.4 91.4 28.4 49.0 0.0 0.0 0.0 0.0 (28.7) 9.1 20.2
740.2 $

710.1 49.2 118.4 15.0
(259.2) 0.0 0.0
250.7 0.0 0.0 (2.4)
22.5
984.7 $

609.1 65.4
107.3 16.7
(296.9) 0.0
(358.6) 0.0
75.9 0.0
270.5 86.4
600.9 $

Amount of Increase (Decrease) (in Thousands)

129.3 51.3
103.0 22.9 (22.7) 0.0
188.8 0.0 0.0 0.0 0.0
157.6
622.0 $

58.6 $
(35.3)
(59.5) 51.0 115.7 35.7 (33.2)
0.0 5.9 0.0 0.0 0.0 0.0 120.9
259.8 $

28.4 $

23.2

7.4
140.2 50.1 28.1 34.4 (84.2) (69.0)
245.2 0.0 0.0 0.0 0.0
22.8
403.4 $

7.0
102.4 (24.2) 39.1 39.4 (109.2) (66.0) 225.8 (168.5)
0.0 0.0 0.0 0.0
69.0

$ 13,724.1 $ 13,830.7 $ 12,474.4 $ 10,349.3 $ 4,021.0 $ (1,567.9) $ (2,953.7) $ (5,596.9) $ (6,204.6) $ (5,769.9)

(15,915.4)

(12,497.7)

(4,843.8)

4,022.8

6,403.4

5,026.0

7,267.0

4,729.2

6,961.2

9,691.0

(14,071.0) 1,286.7 2,580.8 2,786.0 0.0 0.0 0.0
(14,398.9) 0.0 0.0 0.0 0.0
(64.9)

13,868.0 (381.9)
4,772.4 2,757.7
0.0 (9,259.0)
0.0 (14,813.1)
0.0 0.0 0.0 0.0 301.7

21,922.0 (1,149.5) 4,974.5 2,783.8
0.0 0.0 0.0 (20,664.9) 0.0 0.0 0.0 0.0 2,586.9

24,002.0 (3,000.5) 3,403.6 3,167.0
0.0 0.0 0.0 (16,603.6) 0.0 0.0 0.0 2,122.7 872.4

39,729.0 (828.9)
12,375.8 3,047.8 0.0 0.0 0.0
(14,121.2) 33,717.7
0.0 (2,192.3) 2,029.0
195.0

$ (24,072.6) $ 1,421.2 $ 18,083.4 $ 28,335.7 $ 84,376.3 $

34,015.0 973.7
6,201.3 3,267.7
0.0 0.0 0.0 0.0 0.0 2,168.0 24,199.5 433.0 (197.3)
74,519.0 $

6,623.0 420.3
3,381.4 4,021.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (281.8)
18,477.2 $

(3,737.0) (320.5)
1,053.3 3,556.9
0.0 0.0 0.0 36,404.3 0.0 0.0 0.0 0.0 (846.1)
35,243.2 $

7,359.0 1,146.2 (1,717.5) 4,151.6
0.0 (3,594.0)
0.0 0.0 0.0 0.0 0.0 0.0 0.0

5,256.0 (3,354.4) 4,608.2 4,121.2
0.0 (1,559.2)
0.0 23,008.5 (41,797.1)
0.0 0.0 0.0 0.0

8,101.9 $ (5,795.4)

Actuarial
92

GJRS
Interest (7.50) added to previous UAL
Accrued liability contribution
Experience: Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Salary increases Method changes Amendments (COLAs) Assumption changes Lawsuit Data changes Programming modification Misc. changes
Total
LRS
Interest (7.50) added to previous UAL
Accrued liability contribution
Experience: Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Salary increases Method changes Amendments No COLAs Assumption changes Lawsuit Data changes Misc. changes
Total

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

Amount of Increase (Decrease) (in Thousands)

$ (1,207.3) $ (1,977.2) $ (2,774.8) $ (2,891.5) $ (2,636.2) $ (3,360.0) $ (3,585.9) $ (3,729.5) $ (3,889.8) $ (4,035.8)

5,803.3

5,187.8

4,710.8

4,079.8

4,592.1

3,596.2

4,498.3

3,953.2

6,928.7

6,330.0

(6,807.0) 2,138.5 (5,962.8) 1,272.3 (10,382.5)
0.0 0.0 0.0 0.0 0.0 0.0 1,110.1
$ (14,035.4) $

4,949.6 533.8
3,941.4 3,138.0 (4,620.6) (6,827.0)
0.0 0.0 0.0 0.0 4,606.4 1,333.8
10,266.0 $

8,638.5 376.9
2,080.7 442.3
(4,536.5) 0.0
(870.0) 0.0 0.0 0.0
1,648.9 917.5

9,404.0 2,076.8
(276.3) 750.1 1,265.9
0.0 0.0 0.0 0.0 0.0 0.0 (12,852.1)

16,228.0 560.9
2,290.6 0.0
(10,213.5) 0.0 0.0
(14,826.5) 0.0
579.1 0.0
21.3

13,941.0 1,102.3 1,982.9 967.2
(10,561.2) 0.0
(2,359.4) 0.0 0.0
4,581.2 0.0
(240.6)

10,634.3 $ 1,556.7 $ (3,404.2) $ 9,649.6 $

3,164.0 409.3
1,243.3 354.2
(3,432.4) 0.0
1,265.0 0.0 0.0 0.0 0.0
(903.4)
3,102.3 $

Amount of Increase (Decrease) (in Thousands)

(1,026.0) (154.4)
(1,614.7) 659.5 369.8 0.0 24.1 0.0 0.0 0.0 0.0
3,433.5
1,915.5 $

3,464.0 709.7
1,649.8 322.6
(3,293.9) (1,738.0) 2,383.8
0.0 0.0 0.0 0.0 (4,400.5)
2,136.4 $

2,648.0 (950.0)
(2,694.5) 1,638.0 (5,002.0) 1,702.3 5,036.8 (2,725.8)
0.0 0.0 0.0 0.0
1,915.5

$

(343.3) $

(301.8) $

(302.5) $

(343.4) $

(508.5) $

(468.9) $

(426.9) $

(432.3) $

(369.8) $

(440.1)

161.9

(62.4)

33.9

107.1

(32.5)

(21.1)

(26.3)

(31.1)

(43.1)

43.1

(576.5) 323.8 (347.5) 135.2
0.0 0.0 0.0 (470.8) 0.0 0.0 0.0 69.9
$ (1,047.3) $

513.9 (29.6) 17.4 144.5
0.0 (418.0) (488.1)
0.0 0.0 0.0 0.0 71.1
(553.1) $

829.0 19.1 (84.3) 16.9 0.0 0.0
(549.7) 0.0 0.0 0.0 0.0
46.4
8.8 $

906.2 (18.7) 254.5 74.0
0.0 0.0 (481.8) 0.0 0.0 0.0 0.0 46.9
544.9 $

1,534.0 339.2 105.1 98.8 0.0 0.0 (465.3) 0.0 975.2 0.0 114.8 41.6
2,202.4 $

1,307.4 240.7 (5.7) 0.0 0.0 0.0 0.0 0.0 0.0 0.0
(1,529.1) (51.7)
(528.4) $

241.7 (2.2)
(429.8) 35.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 47.4
(560.2) $

(155.0) 119.4 423.8
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 147.9
72.7 $

289.0 (412.7) (154.7)
0.0 0.0 (142.0) 0.0 0.0 0.0 0.0 0.0 0.0
(833.3) $

208.0 172.6 350.0 158.5
0.0 291.1 1,491.7
0.0 (1,337.6)
0.0 0.0 0.0
937.3

Actuarial
93

GMPF*
Interest (7.50) added to previous UAL
Accrued liability contribution
Experience: Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Method changes Assumption changes Expense Deficit Misc. changes
Total

2014

2013

2012

2011

Amount of Increase (Decrease) (in Thousands)

$

1,344.3 $

1,360.8 $

1,354.9

(1,775.3)

(1,661.5)

(1,502.4)

(247.0) 88.8 (87.9)
142.6 0.0 0.0 0.0
161.1

$

(373.4) $

39.3 80.2 186.4 137.8 (393.0)
0.0 0.0 30.6
(219.4) $

107.0 68.3 17.9
127.1 0.0 0.0 0.0
(93.6)
79.2

1,216.1
(1,173.3)
113.8 58.5 205.4 1,469.6
0.0 0.0 37.0 (77.0) 1,850.1

*Note: Data prior to 2011 is not available for GMPF.

SEAD-Active and SEAD-OPEB: Data is not available.

Actuarial
Solvency Test Results
Dollar amounts in thousands
ERS

Actuarial Valuation as of 7/1
2006 2007 2008 2009 2010 2011 2012 2013 2014

Actuarial Accrued Liability for:

Active Member Contributions

Retirants & Beneficiaries

Active Member (Employer Funded
Portion)

Valuation Assets

(1)

(2)

$ 672,679 $ 8,462,884 $

645,907

9,020,890

616,177

9,756,529

589,012

10,034,939

551,607

10,652,040

503,867

11,058,344

460,861

11,420,011

405,841

11,935,364

385,058

12,108,737

(3)

5,107,282 $ 12,376,120

5,218,382

13,843,689

5,308,151

14,017,346

5,254,071

13,613,606

5,091,705

13,046,193

5,094,694

12,667,557

4,897,050

12,260,595

4,641,244

12,129,803

4,498,168

12,376,120

Portion of Aggregate Accrued Liabilities Covered by Assets

(1)
100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

(2)
100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
98.2% 99.0%

(3)
84.7% 80.0% 68.7% 56.9% 36.2% 21.7%
7.8% 0.0% 0.0%

PSERS

Actuarial Valuation as of 7/1
2006 2007 2008 2009 2010 2011 2012 2013 2014

Actuarial Accrued Liability for:

Active Member Contributions

Retirants & Beneficiaries

Active Member (Employer Funded
Portion)

Valuation Assets

(1)
$ 14,321 $ 14,796 15,285 15,862 16,361 16,627 16,917 17,016 16,995

(2)
428,543 $ 456,868 469,601 506,659 528,808 532,509 537,284 549,796 566,344

(3)
248,787 $ 274,414 286,064 300,711 330,227 336,790 341,123 343,444 341,026

766,277 785,460 791,855 769,618 737,406 719,601 710,915 727,268 765,450

Portion of Aggregate Accrued Liabilities Covered by Assets

(1)
100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

(2)
100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

(3)
100.0% 100.0% 100.0%
82.2% 58.2% 50.6% 45.9% 46.7% 53.4%

GJRS

Actuarial Valuation as of 7/1
2006 2007 2008 2009 2010 2011 2012 2013 2014

Actuarial Accrued Liability for:

Active Member Contributions
(1)
$ 48,896 52,707 59,838 61,188 67,293 71,047 73,998 73,949 80,007

Retirants & Beneficiaries

Active Member (Employer Funded
Portion)

(2)

(3)

$

86,194 $

87,333

90,601

108,923

117,730

128,991

141,880

162,364

162,527

94,747 109,238 118,077 112,363
96,473 90,440 92,984 99,479 100,894

Valuation Assets
$ 279,564 297,090 313,315 317,624 320,050 327,483 335,225 351,889 373,560

Portion of Aggregate Accrued Liabilities Covered by Assets

(1)
100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

(2)
100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

(3)
100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

94

Actuarial
LRS

Actuarial Valuation as of 7/1
2006 2007 2008 2009 2010 2011 2012 2013 2014

Actuarial Accrued Liability for:

Active Member Contributions
(1)
$ 2,507 2,484 2,853 2,908 3,166 2,921 3,185 2,951 3,430

Retirants & Beneficiaries

Active Member (Employer Funded
Portion)

(2)

(3)

$ 18,734 $ 19,847 19,366 18,465 19,208 19,759 19,200 19,623 19,006

2,166 2,026 2,235 2,150 2,629 2,564 2,581 2,330 2,477

Valuation Assets
$ 29,172 30,049 30,706 30,303 29,581 29,278 28,990 29,481 30,538

Portion of Aggregate Accrued Liabilities Covered by Assets

(1)
100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

(2)
100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

(3)
100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

GMPF

Actuarial Valuation as of 7/1
2006 2007 2008 2009 2010 2011 2012 2013 2014

Actuarial Accrued Liability for:

Active Member Contributions

(1)

$

0

0

0

0

0

0

0

0

0

Retirants & Beneficiaries

Active Member (Employer Funded
Portion)

(2)
$ 6,392 7,655 9,449
12,742 14,015 15,379 17,518 19,396 21,389

(3)
$ 11,233 12,232 9,675 8,279 9,758 11,388 10,713 10,660 10,426

Valuation Assets
$ 3,100 4,165 5,269 6,413 7,558 8,702
10,087 12,131 14,264

Portion of Aggregate Accrued Liabilities Covered by Assets

(1)

(2)

(3)

n/a

48.5%

0.0%

n/a

54.4%

0.0%

n/a

55.8%

0.0%

n/a

50.3%

0.0%

n/a

53.9%

0.0%

n/a

56.6%

0.0%

n/a

57.6%

0.0%

n/a

62.5%

0.0%

n/a

66.7%

0.0%

SEAD-Active 2
Actuarial Valuation as of 7/1
2007 2008 2009 2010 2011 2012 2013 2014

Actuarial Accrued Liability for:

Active Member Contributions

(1)

$

0

0

0

0

0

0

0

0

Retirants & Beneficiaries

Active Member (Employer Funded
Portion)

(2)

$

0

0

0

0

0

0

0

0

(3)
$ 59,509 62,171 61,351 40,523 40,145 39,317 37,512 35,877

Valuation Assets
$ 185,335 172,595 144,161 156,132 184,783 183,390 204,779 235,358

Portion of Aggregate Accrued Liabilities Covered by Assets

(1)

(2)

(3)

n/a

n/a

100.0%

n/a

n/a

100.0%

n/a

n/a

100.0%

n/a

n/a

100.0%

n/a

n/a

100.0%

n/a

n/a

100.0%

n/a

n/a

100.0%

n/a

n/a

100.0%

95

Actuarial
SEAD-OPEB 2

Actuarial Valuation as of 7/1
2007 2008 2009 2010 2011 2012 2013 2014

Actuarial Accrued Liability for:

Active Member Contributions
(1)
$ 0 0 0 0 0 0 0 0

Retirants & Beneficiaries

Active Member (Employer Funded
Portion)

(2)
$ 436,530 486,569 524,718 516,633 503,327 528,165 586,228 621,502

(3)
$ 206,001 213,315 208,953 174,368 175,093 176,452 168,558 166,518

Valuation Assets
$ 778,048 737,114 628,199 680,449 807,893 818,284 907,831
1,037,901

Portion of Aggregate Accrued Liabilities Covered by Assets

(1)

(2)

(3)

N/A

100.0%

100.0%

N/A

100.0%

100.0%

N/A

100.0%

49.5%

N/A

100.0%

93.9%

N/A

100.0%

100.0%

N/A

100.0%

100.0%

N/A

100.0%

100.0%

N/A

100.0%

100.0%

Data prior to 2006 is not available for Defined Benefit Pension Plans. 2 SEAD-Active and SEAD-OPEB were created effective July 1, 2007.

96

Statistical Section

ERS

GMPF

GJRS

ERSGA

LRS

PSR

GDCP

PSERS

E RSGA
Employees' Retirement System of Georgia
Serving those who serve Georgia

Statistical
Introduction
The objective of the statistical section is to provide a historical perspective, context and relevant details to assist readers in evaluating the condition of the plans. All nonaccounting data is taken from ERSGA's internal sources except for information which is derived from the actuarial valuations. FY2010 was the first year ERSGA added this information in their Annual Financial Report. Therefore, historical detail may not be complete for some schedules. Statistical information is not presented for SCJRF and DARF as both plans are immaterial, have no active members, and are closed to new members.
Financial Trends
The following schedules have been included to help the reader understand how the System's financial position has changed over the past 10 years: Additions by Source Deductions by Type Changes in Fiduciary Net Position
Operational Trends
The following schedules have been included to help the readers understand how the System's financial report relates to the services provided by the System and the activities it performs:
Retiree Information Withdrawal (Refund) Data New Retiree Elections Overall Plan Statistics
98

Statistical
Additions by Source - Contribution/Investment Income (in thousands)
99

ERS
Employee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other
Total Additions to (Deductions from) Fiduciary Net Position
PSERS
Employee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other
Total Additions to (Deductions from) Fiduciary Net Position
GJRS
Employee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other
Total Additions to (Deductions from) Fiduciary Net Position
LRS
Employee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other
Total Additions to (Deductions from) Fiduciary Net Position

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

$

50,963

49,250

48,324

43,978

42,052

39,480

36,561

38,955

32,423

33,713

258,482

270,141 286,256

281,206

263,064

261,132 274,034

358,992

418,807

505,668

--

--

--

--

--

--

--

--

10,945

12,495

774,724 1,869,113 (482,679) (1,726,302) 1,176,741 2,269,270

231,782 1,495,849 2,021,748

474,147

--

90,333

--

--

--

--

--

--

--

10

$ 1,084,169 2,278,837 (148,099) (1,401,118) 1,481,857 2,569,882 542,377 1,893,796 2,483,923 1,026,033

$

1,380

1,420

1,451

1,472

1,483

1,451

1,426

1,538

1,659

1,800

3,638

6,490

2,869

5,096

5,530

7,509

15,884

24,829

--

--

--

--

--

--

--

--

--

--

27,160

28,461

44,561

106,833

(27,052)

(97,156)

66,404

128,096

13,554

88,067

123,799

30,129

588

588

588

588

--

--

--

--

--

--

$

50,167

115,331

(22,144)

(90,000)

73,417

137,056

30,864

114,434

152,618

60,390

$

4,221

4,040

4,698

4,612

5,018

4,721

4,904

4,408

4,731

5,061

1,683

1,778

2,395

1,703

3,369

1,163

2,083

2,279

1,373

2,696

--

--

--

--

--

--

--

--

1,002

1,564

15,665

39,324

(10,702)

(38,164)

27,378

57,330

6,571

42,104

60,012

14,697

175

175

175

175

175

--

--

--

--

--

$

21,744

45,317

(3,434)

(31,674)

35,940

63,214

13,558

48,791

67,118

24,018

$

324

320

320

320

318

320

54

62

73

71

75

75

--

--

--

--

--

--

1,684

4,072

(1,051)

(3,772)

2,610

5,194

110

110

110

110

110

--

$

2,172

4,564

(548)

(3,271)

3,113

5,589

323 76 -- 550 --
949

373 128
-- 3,573
--
4,074

282 45 --
4,969 --
5,296

327 -- -- 1,189 --
1,516

Statistical
100

GMPF
Employee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other
Total Additions to (Deductions from) Fiduciary Net Position

2006

$

--

891

--

103

--

$

994

2007
-- 1,005
-- 503
--
1,508

2008
-- 1,103
-- (191)
--
912

2009
-- 1,323
-- (657)
--
666

2010
-- 1,434
-- 565
--
1,999

2011
-- 1,282
-- 1,465
--
2,747

2012
-- 1,521
-- 221
--
1,742

2013
-- 1,703
-- 1,374
--
3,077

2014
-- 1,892
-- 2,179
--
4,071

SEAD - Active*

Employee Contributions Employer Contributions

$

Insurance Premiums

Net Investment Income (Loss)

Other

Total Additions to (Deductions from) Fiduciary Net

Position

$

SEAD - OPEB*

Employee Contributions Employer Contributions

$

Insurance Premiums

Net Investment Income (Loss)

Other

Total Additions to (Deductions from) Fiduciary Net

Position

$

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

864

880

900

847

771

699

607

--

--

(6,321)

(22,656)

15,910

33,023

3,876

24,274

35,073

--

--

--

--

--

--

--

--

--

--

--

(5,457)

(21,776)

16,810

33,870

4,647

24,973

35,680

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

7,756

7,551

6,755

6,437

5,532

5,075

4,502

--

--

(27,032)

(96,424)

69,340

144,270

17,193

108,148

154,868

--

--

--

--

--

--

--

--

--

--

--

(19,276)

(88,873)

76,095

150,707

22,725

113,223

159,370

*Plans began in fiscal year 2008.

2015
-- 1,893
-- 585
--
2,478
-- -- 581 8,714 --
9,295
-- -- 4,187 37,876 --
42,063

Statistical
101

Defined Contribution Plan - GDCP
Employee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other
Total Additions to (Deductions from) Fiduciary Net Position
Defined Contribution Plan - 401(k)
Employee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other
Total Additions to (Deductions from) Fiduciary Net Position
Defined Contribution Plan - 457
Employee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other
Total Additions to (Deductions from) Fiduciary Net Position

2006

$

14,677

--

--

3,501

--

$

18,178

$

34,557

15,378

--

19,889

252

$

70,076

$

28,967

--

--

41,897

197

$

71,061

2007
15,060 -- --
7,938 --
22,998
34,956 14,774
-- 39,927
674
90,331
28,116 -- --
72,425 537
101,078

2008
15,860 -- --
(331) --
15,529
38,927 14,193
-- (21,302)
921
32,739
26,466 -- --
(31,343) 761
(4,116)

2009
15,608 -- --
(5,294) --
10,314
33,432 6,939 --
(50,330) 750
(9,209)
24,087 -- --
(70,066) 626
(45,353)

2010
16,002 -- --
10,319 --
26,321
33,899 15,664
-- 25,283
385
75,231
21,171 -- --
35,806 468
57,445

2011
17,656 -- --
775 --
18,431
38,006 25,442
-- 59,581
446
123,475
20,108 -- --
70,963 339
91,410

2012
17,171 -- --
652 --
17,823
40,331 4,355 -- 3,112 800
48,598
19,551 -- --
7,785 --
27,336

2013
16,676 -- --
137 --
16,813
44,428 18,279
-- 52,835
948
116,490
18,753 -- --
55,737 --
74,490

2014
16,290 -- --
1,368 --
17,658
53,724 21,513
-- 78,583
1,122
154,942
17,623 -- --
73,746 --
91,369

2015
15,655 -- --
1,326 --
16,981
64,870 25,615
-- 17,665
1,298
109,448
17,445 -- --
18,991 --
36,436

Statistical
Deductions by Type (in thousands)

ERS
Fiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Benefit Payments

Service

Partial LumpSum Option

$

664,891

721,869

797,052

889,669

878,482

921,136

964,485

1,007,816

1,051,993

1,076,676

14,360 17,821 24,792 22,011 23,480 30,946 31,963 35,933 24,567 24,391

Disability
120,315 127,091 131,709 135,743 146,031 140,849 143,317 145,152 146,245 147,418

Survivor Benefits
58,294 61,873 66,397 69,735 82,676 75,891 76,973 80,300 83,193 85,794

Total Benefit Payments

$

857,860

928,654

1,019,950

1,117,158

1,130,669

1,168,822

1,216,738

1,269,201

1,305,998

1,334,278

Net Administrative
Expenses
10,596 14,901 18,805 16,809 14,505 14,431 12,051 12,889
7,440 7,872

Refunds
6,978 6,696 7,815 6,597 6,483 7,515 7,767 7,390 8,757 7,450

Total Deductions from
Fiduciary Net Position

$

875,434

950,251

1,046,570

1,140,564

1,151,657

1,190,768

1,236,556

1,289,480

1,322,195

1,349,600

PSERS
Fiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Benefit Payments

Service

$

37,505

40,070

41,607

45,159

45,741

46,548

46,911

47,805

48,911

49,704

Disability
4,534 4,814 4,956 5,232 5,402 5,369 5,369 5,328 5,280 5,227

Survivor Benefits
1,465 1,580 1,682 1,806 2,052 2,063 1,903 1,908 1,998 2,041

Total Benefit Payments

$

43,504

46,464

48,245

52,197

53,195

53,980

54,183

55,041

56,189

56,972

Net Administrative
Expenses
588 588 588 588 1,956 2,046 2,040 2,021 1,450 1,545

Refunds
316 319 308 261 251 267 349 492 514 456

Total Deductions from
Fiduciary Net Position

$

44,408

47,371

49,141

53,046

55,402

56,293

56,572

57,554

58,153

58,973

GJRS
Fiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Benefit Payments

Service

$

7,663

7,908

8,259

9,453

10,633

11,245

12,608

14,273

15,305

16,084

Disability
103 106 110 112 114 112 113 112 112 112

Survivor Benefits
1,136 1,285 1,498 1,546 1,618 1,654 1,695 1,865 2,024 2,169

Total Benefit Payments

$

8,902

9,299

9,867

11,111

12,365

13,011

14,416

16,250

17,441

18,365

Net Administrative
Expenses
175 175 175 175 270 290 310 313 754 819

Refunds
379 76 14
263 139 260 146 105
22 772

Total Deductions from
Fiduciary Net Position

$

9,456

9,550

10,056

11,549

12,774

13,561

14,872

16,668

18,217

19,956

102

Statistical
LRS Benefit Payments

Fiscal Year
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Service

$

1,210

1,187

1,228

1,265

1,308

1,309

1,364

1,376

1,336

1,315

Survivor Benefits
381 401 406 425 436 452 446 448 465 441

Total Benefit Payments

$

1,591

1,588

1,634

1,690

1,744

1,761

1,810

1,824

1,801

1,756

Net Administrative
Expenses
110 110 110 110 120 131 110 119 152 169

Refunds
18 33 65 49 47 60 74 88 30 26

Total Deductions from
Fiduciary Net Position

$

1,719

1,731

1,809

1,849

1,911

1,952

1,994

2,031

1,983

1,951

GMPF
Fiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Benefit Payments

Service*

Total Benefit Payments

$

150 $

150

225

225

303

303

382

382

489

489

579

579

678

678

772

772

841

841

896

896

Net Administrative
Expenses
43 37 34 31 110 121

Total Deductions from
Fiduciary Net Position

$

150

225

303

382

532

616

712

803

951

1,017

*The only type of retirement in GMPF is a service retirement.

103

Statistical

SEAD-Active
Fiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Benefit Payments

Death Benefits**

$

-

-

7,261

6,636

4,817

5,197

6,018

3,562

5,055

3,929

Total Benefit Payments

$

-

-

7,261

6,636

4,817

5,197

6,018

3,562

5,055

3,929

Net Administrative
Expenses
22 22 22 22 22 22 46 47

Total Deductions from
Fiduciary Net Position

$

-

-

7,283

6,658

4,839

5,219

6,040

3,584

5,101

3,976

SEAD-OPEB
Fiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Benefit Payments

Death Benefits**

$

-

-

21,455

19,839

23,642

23,060

24,855

28,482

28,891

32,979

Total Benefit Payments
21,455 19,839 23,642 23,060 24,855 28,482 28,891 32,979

Net Administrative
Expenses
203 203 203 203 203 203 414 428

Total Deductions from
Fiduciary Net Position

$

-

-

21,658

20,042

23,845

23,263

25,058

28,685

29,305

33,407

**The only type of benefit in SEAD-Active and SEAD-OPEB is a death benefit. Plan began in fiscal year 2008.

104

Statistical

Defined Contribution Plan - GDCP Benefit Payments

Fiscal Year
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Periodic Payments

Total Benefit Payments

$

- $

-

-

-

9

9

9

9

9

9

9

9

11

11

9

9

9

9

-

-

Net Administrative
Expenses
310 310 310 310 1,110 1,180 1,138 1,160 991 990

Refunds
13,216 12,464 11,514 10,377 10,613 11,390 12,749 14,415 17,721 22,340

Total Deductions from
Fiduciary Net Position

$

13,526

12,774

11,833

10,696

11,732

12,579

13,898

15,584

18,721

23,330

Defined Contribution Plan - 401(k) Benefit Payments

Fiscal Year
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Distributions

Total Benefit Payments

$

17,566 $

17,566

25,785

25,785

26,548

26,548

21,105

21,105

23,618

23,618

42,457

42,457

36,986

36,986

57,351

57,351

43,133

43,133

95,428

95,428

Net Administrative
Expenses
1,305 1,050 1,472 1,028
829 2,054 2,111 2,457 2,300 2,755

Total Deductions from
Fiduciary Net Position

$

18,871

26,835

28,020

22,133

24,447

44,511

39,097

59,808

45,433

98,183

Defined Contribution Plan - 457 Benefit Payments

Fiscal Year
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Distributions

Total Benefit Payments

$

34,055 $

34,055

53,097

53,097

41,555

41,555

37,257

37,257

37,014

37,014

44,773

44,773

41,835

41,835

63,388

63,388

45,807

45,807

50,479

50,479

Net Administrative
Expenses
1,222 921
1,169 1,769 2,115 1,064
910 996 812 866

Total Deductions from
Fiduciary Net Position

$

35,277

54,018

42,724

39,026

39,129

45,837

42,745

64,384

46,619

51,345

105

Statistical
Changes in Fiduciary Net Position (in thousands)
106

ERS
Total Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position
PSERS
Total Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position
GJRS
Total Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position
LRS
Total Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position
GMPF
Total Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

$ 1,084,169 2,278,837 (148,099) (1,401,118) 1,481,857 2,569,882

542,377 1,893,796

2,483,923 1,026,033

875,434

950,251 1,046,570 1,140,564

1,151,657 1,190,768 1,236,556 1,289,480

1,322,195 1,349,600

--

--

--

--

--

--

(12,724)

(5,009)

--

--

208,735 1,328,586 (1,194,669) (2,541,682)

330,200 1,379,114 (706,903)

599,307

1,161,728 (323,567)

50,167 44,408
-- 5,759

115,331 47,371
-- 67,960

(22,144) 49,141
-- (71,285)

(90,000) 53,046
-- (143,046)

73,417 55,402
-- 18,015

137,056 56,293 -- 80,763

30,864 56,572
-- (25,708)

114,434 57,554
-- 56,880

152,618 58,153 -- 94,465

60,390 58,973
-- 1,417

21,744 9,456 --
12,288

45,317 9,550 --
35,767

(3,434) 10,056
-- (13,490)

(31,674) 11,549
-- (43,223)

35,940 12,774
-- 23,166

63,214 13,561
-- 49,653

13,558 14,872
-- (1,314)

48,791 16,668
-- 32,123

67,118 18,217
-- 48,901

24,018 19,956
-- 4,062

2,172 1,719
-- 453

4,564 1,731
-- 2,833

(548) 1,809
-- (2,357)

(3,271) 1,849
-- (5,120)

3,113 1,911
-- 1,202

5,589 1,952
-- 3,637

949 1,994
-- (1,045)

4,074 2,031
-- 2,043

5,296 1,983
-- 3,313

1,516 1,951
-- (435)

1,022

1,508

912

150

225

303

--

--

--

872

1,283

609

666

1,999

2,747

1,742

3,077

4,071

2,478

382

532

616

712

803

951

1,017

--

--

--

--

--

--

--

284

1,467

2,131

1,030

2,274

3,120

1,461

Statistical
107

SEAD - Active*
Total Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position
SEAD - OPEB*
Total Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position
Defined Contribution Plan - GDCP
Total Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position
Defined Contribution Plan - 401(k)
Total Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position
Defined Contribution Plan - 457
Total Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position
* Plan began in fiscal year 2008.

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

$

--

--

(5,457)

(21,776)

16,810

33,870

4,647

24,973

35,680

9,295

--

--

7,283

6,658

4,839

5,219

6,040

3,584

5,101

3,976

--

--

--

--

--

--

--

--

--

--

--

--

(12,740)

(28,434)

11,971

28,651

(1,393)

21,389

30,579

5,319

--

--

(19,276)

(88,873)

76,095

150,707

22,725

113,223

159,370

42,063

--

--

21,658

20,042

23,845

23,263

25,058

28,685

29,305

33,407

--

--

--

--

--

--

12,724

5,009

5

2

--

--

(40,934) (108,915)

52,250

127,444

10,391

89,547

130,070

8,658

$

18,178

22,998

15,529

10,314

26,321

18,431

17,823

16,813

17,658

16,981

13,526

12,774

11,833

10,696

11,732

12,579

13,898

15,584

18,721

23,330

-

-

-

-

-

-

-

-

-

-

4,652

10,224

3,696

(382)

14,589

5,852

3,925

1,229

(1,063)

(6,349)

70,076 18,871
51,205

90,331 26,835
63,496

32,739 28,020
4,719

(9,209) 22,133
(31,342)

75,231 24,447
50,784

123,475 44,511 78,964

48,598 39,097
9,501

116,490 59,808
56,682

154,942 45,433 -
109,509

109,448 98,183 11,265

71,061 35,277
35,784

101,078 54,018 47,060

(4,116) 42,724
(46,840)

(45,353) 39,026
(84,379)

57,445 39,129
18,316

91,410 45,837
45,573

27,336 42,745
(15,409)

74,490 64,384
10,106

91,369 46,619
44,750

36,436 51,345
(14,909)

Statistical
Number of Retirees
108

Statistical
Average Monthly Payments to Retirees
109

Statistical
Annual Benefit (in thousands)
110

Statistical
Withdrawal Statistics
Note: The GMPF Plan does not have a refund feature.
111

Statistical
Average Monthly Benefit Payment for New Retirees - ERS

2006
Average Monthly Benefit Average Final Average Salary Number of Retirees
2007
Average Monthly Benefit Average Final Average Salary Number of Retirees
2008
Average Monthly Benefit Average Final Average Salary Number of Retirees
2009
Average Monthly Benefit Average Final Average Salary Number of Retirees
2010
Average Monthly Benefit Average Final Average Salary Number of Retirees
2011
Average Monthly Benefit Average Final Average Salary Number of Retirees
2012
Average Monthly Benefit Average Final Average Salary Number of Retirees
2013
Average Monthly Benefit Average Final Average Salary Number of Retirees
2014
Average Monthly Benefit Average Final Average Salary Number of Retirees
2015
Average Monthly Benefit Average Final Average Salary Number of Retirees

Years of Credited Service

10-15

16-20

21-25

26-30

Over 30

Total

$632.54 $2,867.00
281

$1,022.68 $2,971.73
299

$1,347.20 $3,087.80
219

$1,789.67 $3,587.30
298

$3,458.78 $4,345.99
1,011

$2,281.17 $3,715.95
2,108

$655.86 $2,935.70
307

$961.27 $3,071.63
303

$1,317.36 $3,265.26
247

$1,789.83 $3,745.37
292

$3,423.26 $4,373.83
1,022

$2,229.02 $3,778.07
2,171

$701.03 $3,025.39
309

$1,068.51 $3,181.44
306

$1,457.03 $3,408.23
280

$1,899.48 $3,767.28
290

$3,576.69 $4,489.73
1,032

$2,342.60 $3,873.97
2,217

$717.65 $3,109.07
344

$1,059.22 $3,179.28
320

$1,458.18 $3,483.90
301

$1,910.75 $3,875.27
324

$3,627.21 $4,548.96
949

$2,272.58 $3,891.02
2,238

$694.23 $3,023.45
391

$1,086.00 $3,345.36
324

$1,502.32 $3,555.21
332

$1,849.65 $3,802.65
375

$3,653.29 $4,588.73
981

$2,247.01 $3,900.93
2,403

$734.74 $3,228.07
437

$1,107.16 $3,205.88
322

$1,504.51 $3,478.73
389

$1,995.24 $3,762.88
461

$3,575.54 $4,532.07
885

$2,143.95 $3,825.88
2,494

$729.60 $3,040.00
518

$1,247.16 $3,275.37
385

$1,624.82 $3,388.85
414

$2,125.35 $3,807.26
486

$3,708.26 $4,702.47
776

$2,109.84 $3,775.94
2,578

$836.73 $3,391.36
684

$1,183.19 $3,339.84
453

$1,650.14 $3,411.24
466

$2,120.33 $3,765.16
780

$3,487.96 $4,659.17
1,033

$2,088.46 $3,855.98
3,416

$770.41 $3,319.05
475

$1,229.79 $3,336.74
305

$1,518.77 $3,258.94
309

$2,060.46 $3,717.87
476

$3,239.79 $4,484.41
542

$1,873.22 $3,702.67
2,107

$741.89 $3,277.84
511

$1,151.49 $3,430.71
313

$1,675.19 $3,565.09
334

$2,302.55 $3,740.35
617

$3,822.81 $4,545.17
559

$2,080.83 $3,765.24
2,334

112

Statistical
Average Monthly Benefit Payment for New Retirees - PSERS

2006
Average Monthly Benefit Number of Retirees
2007
Average Monthly Benefit Number of Retirees
2008
Average Monthly Benefit Number of Retirees
2009
Average Monthly Benefit Number of Retirees
2010
Average Monthly Benefit Number of Retirees
2011
Average Monthly Benefit Number of Retirees
2012
Average Monthly Benefit Number of Retirees
2013
Average Monthly Benefit Number of Retirees
2014
Average Monthly Benefit Number of Retirees
2015
Average Monthly Benefit Number of Retirees

Years of Credited Service

10-15

16-20

21-25

26-30

Over 30

Total

$137.90 347

$206.87 206

$265.04 127

$324.20 84

$413.20 115

$226.26 879

$143.42 323

$208.47 174

$265.12 106

$331.55 89

$426.70 93

$229.16 785

$149.91 362

$219.81 199

$279.58 116

$349.05 99

$439.31 98

$238.04 874

$156.52 391

$224.92 200

$289.93 157

$357.58 91

$460.04 90

$242.89 929

$157.66 448

$224.92 200

$300.93 162

$359.24 76

$464.07 105

$243.41 1,001

$158.67 463

$227.68 200

$297.01 126

$374.01 79

$479.42 114

$245.04 982

$159.25 480

$236.46 182

$303.66 136

$362.36 74

$476.51 87

$238.59 958

$159.34 580

$232.10 255

$300.66 175

$360.75 113

$478.49 133

$245.72 1,256

$155.47 566

$227.56 246

$293.83 139

$352.25 107

$436.25 118

$232.98 1,176

$155.47 511

$227.56 226

$293.83 143

$352.25 97

$436.25 86

$230.75 1,063

Note: PSERS is not a final average pay plan.

113

Statistical
Average Monthly Benefit Payment for New Retirees - GJRS

2006
Average Monthly Benefit Average Final Average Salary Number of Retirees
2007
Average Monthly Benefit Average Final Average Salary Number of Retirees
2008
Average Monthly Benefit Average Final Average Salary Number of Retirees
2009
Average Monthly Benefit Average Final Average Salary Number of Retirees
2010
Average Monthly Benefit Average Final Average Salary Number of Retirees
2011
Average Monthly Benefit Average Final Average Salary Number of Retirees
2012
Average Monthly Benefit Average Final Average Salary Number of Retirees
2013
Average Monthly Benefit Average Final Average Salary Number of Retirees
2014
Average Monthly Benefit Average Final Average Salary Number of Retirees
2015
Average Monthly Benefit Average Final Average Salary Number of Retirees

Years of Credited Service

10-15

16-20

21-25

26-30

Over 30

Total

$1,648.42

0

$7,018.67

0

0

$4,333.55

$3,680.42

0

$8,421.30

0

0

$6,050.86

1

0

1

0

0

2

$4,635.56 $7,888.25
4

$1,821.81 $8,213.52
3

$5,338.65 $7,150.62
3

$7,603.57 $10,184.26
1

0

$4,849.90

0

$8,359.16

0

11

$2,485.43 $6,662.15
4

0

$7,368.55

$4,735.08

0

$9,934.33

$6,342.20

0

2

2

0

$4,863.02

0

$7,646.23

0

8

$4,874.28 $9,519.58
8

$5,883.17 $8,825.88
5

$7,366.55 $10,071.58
7

$6,630.61 $8,881.08
5

$7,639.64 $10,232.57
2

$6,478.85 $9,506.14
27

$6,337.43 $10,490.01
1

$4,563.90 $7,018.08
5

$7,643.86 $10,490.01
2

$6,422.80 $8,602.74
4

0

$6,242.00

0

$9,150.21

0

12

$4,632.24 $9,211.23
4

$10,170.24 $14,910.13
2

$9,799.81 $13,052.66
2

$8,428.40 $11,264.63
3

0

$7,614.02

0 $11,505.85

0

11

$4,204.95 $7,788.39
5

$6,610.26 $9,887.17
4

$7,565.84 $10,361.29
4

$8,791.96 $11,714.95
7

$7,831.84 $10,490.01
1

$6,915.64 $10,035.77
20

$5,179.20 $9,271.48
8

$5,844.29 $8,344.35
7

$6,170.52 $8,370.72
7

$7,954.14 $10,624.52
5

$6,169.77 $8,864.27
7

$6,132.24 $9,010.27
34

$2,989.92 $6,265.39
6

$4,468.12 $7,772.95
2

$6,496.50 $8,998.48
7

0

$2,703.82

$4,470.15

0

$4,289.57

$7,166.46

0

3

18

$4,010.30 $6,937.39
2

$6,317.44 $9,141.51
5

$7,051.15 $9,751.01
7

$7,589.28 $10,165.12
2

$2,406.28 $3,222.98
1

$6,267.69 $8,905.45
17

114

Statistical
Average Monthly Benefit Payment for New Retirees - LRS

2006
Average Monthly Benefit Number of Retirees
2007
Average Monthly Benefit Number of Retirees
2008
Average Monthly Benefit Number of Retirees
2009
Average Monthly Benefit Number of Retirees
2010
Average Monthly Benefit Number of Retirees
2011
Average Monthly Benefit Number of Retirees
2012
Average Monthly Benefit Number of Retirees
2013
Average Monthly Benefit Number of Retirees
2014
Average Monthly Benefit Number of Retirees
2015
Average Monthly Benefit Number of Retirees

Years of Credited Service

8 - 14

15 - 19

20 - 24

25 - 29

30 & over

Total

$355.63 $517.30

0

0

0 $436.47

3

3

0

0

0

6

$256.96 5

$476.39 5

$762.02 2

$939.00 $1,195.52

1

1

$725.98 14

$324.74 $604.63 $698.86

0

0 $542.74

4

4

2

0

0

10

$425.39 2

$650.99 1

0 $921.00 $1,203.00 $800.10

0

2

3

8

$372.93 $558.00

0

0

0 $465.47

8

1

0

0

0

9

$341.79 12

$589.12 1

0 $843.26 $934.73 $456.99

0

2

1

16

$363.66 $549.08

0

0 $1,286.43 $548.46

4

2

0

0

1

7

$308.15 14

$568.93 4

$670.94 2

0 $1,166.93

0

3

$497.03 23

$289.25 $480.21

0

0

0 $336.99

3

1

0

0

0

4

$341.03 5

$382.95 1

$642.84 3

0 $1,228.50

0

2

$588.51 11

Note: LRS is not a final average pay plan.

115

Statistical
Average Monthly Benefit Payment for New Retirees - GMPF

2006
Average Monthly Benefit Number of Retirees
2007
Average Monthly Benefit Number of Retirees
2008
Average Monthly Benefit Number of Retirees
2009
Average Monthly Benefit Number of Retirees
2010
Average Monthly Benefit Number of Retirees
2011
Average Monthly Benefit Number of Retirees
2012
Average Monthly Benefit Number of Retirees
2013
Average Monthly Benefit Number of Retirees
2014
Average Monthly Benefit Number of Retirees
2015
Average Monthly Benefit Number of Retirees

Years of Credited Service

20-25

26 - 30

Over 30

Total

$61.25 4

$85.00 13

$100.00 44

$94.26 61

$60.83 6

$83.46 13

$100.00 54

$93.84 73

$55.63 8

$83.61 18

$100.00 47

$91.10 73

$59.50 20

$87.63 19

$100.00 53

$88.64 92

$63.82 17

$85.83 18

$100.00 56

$90.44 91

$63.16 19

$91.47 17

$100.00 52

$90.40 88

$61.54 13

$90.33 15

$100.00 63

$92.83 90

$59.44 18

$89.55 22

$100.00 42

$88.29 82

$61.11 9

$90.53 19

$100.00 31

$91.02 59

$62.07 15

$94.10 16

$100.00 20

$86.99 51

Note: GMPF is not a final average pay plan.

116

Statistical
Retired Members by Retirement Type
ERS June 30, 2015

PSERS June 30, 2015

Amount of Monthly Benefit

$

1 - 500

501 - 1,000

1,001 - 1,500

1,501 - 2,000

2,001 - 2,500

2,501 - 3,000

3,001 - 3,500

3,501 - 4,000

4,001 - 4,500

4,501 - 5,000

over 5,000

Totals

Retirement Type

Service

Disability

Survivor

3,481

260

315

7,312

977

325

5,847

1,133

234

4,574

932

153

3,576

758

109

3,018

599

74

2,498

425

49

2,160

329

43

1,755

230

22

1,552

185

13

3,909

282

51

39,682

6,110

1,388

Amount of Monthly Benefit

$

1 - 100

101 - 200

201 - 300

301 - 400

401 - 500

over 500

Totals

Retirement Type

Service

Disability

Survivor

87

6

212

5,476

37

142

4,458

287

44

2,588

423

6

1,595

300

1

1,154

178

0

15,358

1,231

405

117

Statistical
Retired Members by Retirement Type
GJRS June 30, 2015

LRS June 30, 2015

Amount of Monthly Benefit
$ 1 - 1,000 1,001 - 2,000 2,001 - 3,000 3,001 - 4,000 4,001 - 5,000 5,001 - 6,000 6,001 - 7,000 7,001 - 8,000 over 8,000
Totals

Retirement Type

Service

Disability

Survivor

13

-

-

20

-

6

24

-

1

34

-

1

22

2

1

17

-

-

28

-

-

90

-

-

31

-

-

279

2

9

GMPF June 30, 2015

Amount of Monthly Benefit

$

1 - 250

251 - 500

501 - 750

751 - 1,000

over 1,000

Totals

Service
21 109
67 35 24

Retirement Type

Disability

Survivor

-

-

-

3

-

-

-

1

-

-

256

0

4

Amount of Monthly Benefit

$

1 - 49

50 - 100

over 100

Totals

Retirement Type Service 844 -
844

118

Statistical
Retired Members by Optional Form of Benefit
ERS June 30, 2015

Amount of Monthly Benefit

$

1 - 500

501 - 1,000

1,001 - 1,500

1,501 - 2,000

2,001 - 2,500

2,501 - 3,000

3,001 - 3,500

3,501 - 4,000

4,001 - 4,500

4,501 - 5,000

over 5,000

Totals

Maximum Plan
1,294 3,937 3,152 2,420 1,860 1,507 1,064 845 608 494 918
18,099

Option 1
377 1,103 989 916 664 528 387 276 205 128 282
5,855

Form of Benefit

Option 2

Option 3

1,213

410

1,731

612

1,238

609

797

539

544

443

422

331

290

321

247

232

167

194

135

184

285

456

7,069

4,331

Option 4
581 739 679 505 493 594 637 695 673 684 2,053
8,333

Option 5A
123 313 335 233 217 125 117 96 46 46 86

Option 5B
58 179 212 249 222 184 156 141 114 79 162

1,737

1,756

Maximum Plan Option 1
Option 2 Option 3 Option 4
Option 5A Option 5B

Single life annuity Reduced single life annuity with a guarantee of the remainder of the annuity savings fund account (contributions and interest), if any, to be paid upon the retiree's death
100% joint and survivor annuity with a popup option upon divorce 50% joint and survivor annuity with a popup option upon divorce Various options, including a specified monthly amount payable to a beneficiary upon the retiree's death, several period certain annuities of varying length, and a five-year accelerated benefit
100% joint and survivor annuity with a popup option upon divorce or the death of the beneficiary before the retiree 50% joint and survivor annuity with a popup option upon divorce or the death of the beneficiary before the retiree

119

Statistical
Retired Members by Optional Form of Benefit
PSERS June 30, 2015

Amount of Monthly Benefit

$

1 - 100

101 - 200

201 - 300

301 - 400

401 - 500

over 500

Totals

Maximum Plan
0 4,128 4,015 2,659 1,739 1,260
13,801

Option AA
51 883 444 228 94 37

Form of Benefit Option AB Option AC

227

8

305

8

156

5

52

9

34

3

14

5

Option AD
6 60 25 10 1 0

1,737

788

38

102

Option B
13 271 144 59 25 16
528

Maximum Plan Option AA Option AB Option AC Option AD Option B

Single life annuity 100% joint and survivor annuity 50% joint and survivor annuity Joint and survivor annuity with a specified monthly amount payable to a beneficiary Joint and survivor annuity with the amount payable to a beneficiary limited by the age difference between the retiree and the beneficiary Annuity for a guaranteed period of time (5, 10,15, or 20 years). If retiree outlives guarantee period, there is no benefit due after retiree's death

120

Statistical
Retired Members by Optional Form of Benefit
GJRS June 30, 2015
Amount of Monthly Benefit
$ 1 - 1,000 1,001 - 2,000 2,001 - 3,000 3,001 - 4,000 4,001 - 5,000 5,001 - 6,000 6,001 - 7,000 7,001 - 8,000 over 8,000
Totals

Form of Benefit

Maximum Plan

Spousal Coverage

0

13

2

24

1

24

2

33

6

19

6

11

6

22

16

74

6

25

45

245

Maximum Plan Spousal Coverage

Single life annuity Indicates the member elected at enrollment that a survivor annuity be paid to a surviving spouse

LRS June 30, 2015

Amount of Monthly Benefit

$

1 - 250

251 - 500

501 - 750

751 - 1,000

over 1,000

Totals

Form of Benefit

Maximum Plan

Option B1

0

16

40

63

35

20

10

21

9

12

94

132

Option B2
5 9 12 5 3
34

Maximum Plan Option B1 Option B2

Single life annuity 100% joint and survivor annuity 50% joint and survivor annuity

GMPF and SEAD-Active and SEAD-OPEB June 30, 2015
The GMPF Plan provides a benefit only in one form, a life annuity. All 844 current retirees, therefore, have this same form of benefit. The SEAD-Active and SEAD-OPEB plans provide only a lump sum death benefit to a member's beneficiary(ies).

121

Statistical
Top Participatory Employers FY10
ERS
Department of Corrections Department of Behavioral Health and Developmental Disability Department of Transportation Department of Labor Department of Juvenile Justice Department of Natural Resources Department of Human Resources Department of Driver Services Department of Community Health Department of Revenue
Total Top Employers Total ERS Member Count
PSERS
Gwinnett County Schools Cobb County Schools Dekalb County Schools Clayton County Schools Muscogee County Schools Henry County Schools Cherokee County Schools Forsyth County Schools Richmond County Schools Paulding County Schools
Total Top Employers Total PSERS Member Count
GJRS
Council of Superior Court Judges Council of State Court Judges Prosecuting Attorney's Council Council of Juvenile Judges
Total Top Employers Total GJRS Member Count
Data from 9 years prior is unavailable. FY10 data is the first available.

Member Count % of total plan

12,527 6,869 4,846 3,867 3,679 2,079 1,942 1,674 1,351 1,154
39,988 68,567

18.2% 10.0%
7.1% 5.7% 5.4% 3.0% 2.8% 2.4% 2.0% 1.7%
58.3%

3,931 2,471 2,234 1,382
970 909 902 894 877 715
15,285 39,962

9.8% 6.2% 5.6% 3.4% 2.4% 2.3% 2.3% 2.2% 2.2% 1.8%
38.2%

203

41.0%

108

21.8%

96

19.4%

71

14.4%

478

96.6%

495

122

Statistical
Top Participatory Employers FY15
ERS
Department of Corrections Department of Behavioral Health and Developmental Disabilities Department of Transportation Department of Juvenile Justice Department of Human Services Department of Public Safety Department of Natural Resources Department of Labor Department of Revenue Department of Community Health
Total Top Employers Total ERS Member Count
PSERS
Gwinnett County Schools Cobb County Schools Dekalb County Schools Clayton County Schools Forsyth County Schools Richmond County Schools Muscogee County Schools Houston County Schools Cherokee County Schools Bibb County Schools
Total Top Employers Total PSERS Member Count
GJRS
Council of Superior Courts Council of State Court Judges Prosecuting Attorney's Council Council of Juvenile Courts
Total Top Employers Total GJRS Member Count
SEAD-Active and SEAD-OPEB
Department of Corrections Department of Transportation Department of Behavioral Health and Developmental Disability Department of Labor Department of Juvenile Justice Department of Natural Resources Department of Human Services Department of Public Safety Department of Revenue Department of Public Health
Total Top Employers Total Active Member Count

Member Count % of total plan

11,452 4,203 4,065 3,659 3,218 1,720 1,640 1,367
961 915
33,200 60,419
3,579 2,335 2,172 1,294
856 780 778 752 685 635
13,866 35,488
210 121
94 69
494 514
6,079 3,130 1,933 1,770 1,642 1,227 1,156 1,090
507 474
19,008 35,142

18.95% 6.96% 6.73% 6.06% 5.33% 2.85% 2.71% 2.26% 1.59% 1.51%
54.95%
10.09% 6.58% 6.12% 3.65% 2.41% 2.20% 2.19% 2.12% 1.93% 1.79%
39.07%
40.86% 23.54% 18.29% 13.42%
96.11%
17.30% 8.91% 5.50% 5.04% 4.67% 3.49% 3.29% 3.10% 1.44% 1.35%
54.09%

123

Statistical
Statistical Data at June 30, 2015
124

System ERS
PSERS GJRS LRS GDCP SCJRF DARF SEAD GMPF

Net Position $ 13 billion
$ 823 million $405 million $ 32 million $ 102.2 millon $ 7 thousand

Employer Contributions Old Plan: 21.96% New Plan: 21.96% GSEPS 18.87%
($518 mil)
$28.5 million
6.98% ($4.3 million)
0% (None)
None
$1.3 million

Employee Contributions
Old Plan: 6% (with 4.75% pickup)
New Plan: 1.25% GSEPS: 1.25% ($33.7 mil)
$36 yr prior July 1, 2012 $90 yr after July 1, 2012 (1.8 million)
7.5% +2.5% Spousal ($5.1 million)
8.5% (with 4.75% pickup)
($327 thousand)
7.5% ($15.7 million)
None

Active Members Old Plan: (<1%) 171 New Plan: (57%) 34,579 GSEPS: (42%) 25,669 Total: 60,419
35,488
516
219
14,712
None

$ 2 thousand $1.3 billion $ 17.0 million

$69 thousand None
$1.9 million

None
New Plan: 0.25% Old Plan: 0.50% ($4.8 million)
None

None
No. Insured: 35,142
13,940

Inactives
84,791
79,468 63 158
123,413 None None 1,063 None

Retirees Total: 47,180
Service: 35,672 Beneficiary: 5,489 Disability: 5,335
Inv. Sep.: 534 Law. Enf.: 150
16,994

Annual Payment

Average Monthly Benefit

$1.3 billion

$2,325

$57 million

$281

290 260 1 17 5 No. Insured: 39,794 844

$18.4 million

$5,428

$1.8 million $9 thousand $1.3 million

$572
Paid Annually
$5,926

$69 thousand
No. of Claims: 1,100 Amt.Pd: $36.9 mil
$896 thousand

$855
Average Claim: $33,414
$90