Comprehensive annual financial report [June 30, 2016]

2016

Employees' Retirement System of Georgia
Comprehensive Annual Financial Report

ERS

GMPF

GJRS

ERSGA

LRS

PSR

GDCP

PSERS

Fiscal Year Ended June 30, 2016
A component unit of the State of Georgia

E RSGA

Serving those who serve Georgia

Employees' Retirement System of Georgia

Introductory
Section

Employees' Retirement System of Georgia
Comprehensive Annual Financial Report

ERS

GMPF

GJRS

ERSGA

LRS

PSR

GDCP

PSERS

Fiscal Year Ended June 30, 2016
Prepared by the Financial Services Division
James A. Potvin Executive Director
A component unit of the State of Georgia

E RSGA

Serving those who serve Georgia

Employees' Retirement System of Georgia

Table of Contents

Introductory Section

Boards of Trustees

4

Letter of Transmittal

5

Certificate of Achievement for Excellence in Financial

8

Reporting

PPCC Recognition Award for Funding

9

Administrative Staff and Organization

10

Organizational Chart

11

Financial Section

Independent Auditors' Report

13

Management's Discussion and Analysis (Unaudited)

15

Basic Financial Statements:

Combining Statement of Fiduciary Net Position

22

as of June 30, 2016

Defined Benefit Plans-Combining Statement of

23

Fiduciary Net Position as of June 30, 2016

Combining Statement of Changes in Fiduciary Net

24

Position for the Year Ended June 30, 2016

Defined Benefit Plans-Combining Statement of

25

Changes in Fiduciary Net Position for the

Year Ended June 30, 2016

Notes to Financial Statements

26

Required Supplementary Information (Unaudited):

Defined Benefit Pension Plans:

Schedules of Employers' and Nonemployers'

55

Contributions

Schedules of Employers' and Nonemployers' Net 57

Pension Liability and Related Ratios

Schedules of Changes in Employers' and

58

Nonemployers' Net Pension Liability

Schedule of Investment Returns

63

Defined Benefit OPEB Plans:

Schedules of Funding Progress

64

Schedules of Employer Contributions

65

Notes to Required Supplementary Information (Unaudited) 66

Additional Information:

Schedule of Administrative Expenses - Contributions 69

and Expenses

Schedule of Investment Expenses

70

Investment Section

Investment Overview

72

Pooled Investment Fund/Rates of Return

73

Asset Allocation at Fair Value/Investment Summary

74

Schedule of Fees and Commissions

75

Twenty Largest Equity Holdings

76

Fixed Income Holdings

77

Actuarial Section

Actuary's Certification Letters

79

Summary of Plan Provisions

91

Summary of Actuarial Assumptions

92

Active Members

103

Member and Employer Contribution Rates

105

Defined Benefit Pension Plans

108

Schedules of Funding Progress

Schedule of Retirees Added to and Removed from Rolls 110

Analysis of Change in Unfunded Accrued Liability (UAL) 112

Solvency Test Results

115

Statistical Section

Introduction

119

Additions by Source - Contribution/Investment Income

120

Deductions by Type

123

Changes in Fiduciary Net Position

127

Number of Retirees

129

Average Monthly Payments to Retirees

130

Annual Benefit

131

Withdrawal Statistics

132

Average Monthly Benefit Payment for New Retirees

133

Retired Members by Retirement Type

138

Retired Members by Optional Form of Benefit

140

Top Participatory Employers

143

Statistical Data at June 30, 2016

145

Introductory
FinSeactnioncial
Section

Introductory Section

ERS

GMPF

GJRS

ERSGA

LRS

PSR

GDCP

PSERS

E RSGA

Serving those who serve Georgia

Employees' Retirement System of Georgia

Boards of Trustees

Introductory
Section
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

Greg S. Griffin

Eli P. Niepoky

Public School Employees Retirement System* State Employees' Assurance Department**

Michael Lowe

Richard Taylor

Mark Butler

Georgia Judicial Retirement System*

H. Phillip Bell

Ellen S. Golden

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

Letter of Transmittal
December 21, 2016

Introductory
Section

E RSGA

Serving those who serve Georgia

Employees' Retirement System of Georgia

Two Northside 75 Atlanta, GA 30318

I am pleased to present the Comprehensive Annual Financial Report for the fiscal year ended June 30, 2016 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 System was established in 1949 by an Act of the Georgia General Assembly to provide benefits for all State employees. 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 System is responsible for administering 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 26 through 35 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 governed by a 7-member Board of Trustees (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 governorappointed members.
As of June 30, 2016, the System's defined benefit (DB) plans served a total of 109,272 active members and 67,563 retirees/ beneficiaries from 702 employers around the state. There

were 55,542 participants in the 401(k) plan with a total investment balance of $680 million. The 457 plan had 13,029 participants with a total investment balance of $558 million. There are 486 participating employers from around the state in the 457 and 401(k) plans.
Legislation
In the 2016 session, the following Acts were passed by the General Assembly and signed by the Governor, which impact the System:
Act 400 was a companion bill to HB 310, which created 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 became eligible upon passage.
Act 426 changes the vesting requirement for judges moving from part-time to full-time service and allows for an actuarial calculation of benefits upon transfer to full-time service and subsequent retirement.
Act 432 allows certain law enforcement members to purchase up to five years of certain local government authority service by paying full actuarial cost.
Act 380 adds state chartered banks or trust companies to the allowable list of commingled investments for all retirement systems under Title 47.
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

5

(continued)

Introductory
Section

Letter of Transmittal

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.

Excellence in Financial Reporting
For the sixth consecutive year, the Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate ofAchievement 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, 2015. 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.

Please refer to the Management's Discussion and Analysis starting on page 15 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.

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.

For fiscal year 2016, the pooled investment fund generated a return of 1.4%. The fund continues to invest in a mix of highquality 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 the System. For further information on investments of the pooled fund, please refer to the Investment Section on pages 72 through 77 of this report.
The objective of the System's 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 64, 108, and 109. The latest actuarial valuations as of June 30, 2015 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

FY2014 72.8% 82.8%
122.6% 108.8%
44.8%

FY2015 74.1% 83.2%
123.1% 113.2% 46.7%

Further information regarding the funding condition of the pension plans can be found in the Actuarial Section of this report, beginning on page 79.

Initiatives
Benefit Statements The Georgia State Employees' Pension and Savings (GSEPS) tier of ERS utilizes two benefit plans to deliver a member's retirement benefits. The ERS pension plan is administered in-house by ERS staff, while the Peach State Reserves (PSR) 401(k) and 457 plans are outsourced. Communications pertaining to the two systems have in the past been conducted separately by the two administration platforms, which has been a complicating factor for our membership.
In February 2016, ERS took two major steps towards integration of the two plans' communication strategies. First, we delivered a combined benefit statement to our active membership, which included information on both the pension plan and the PSR plans, as well as a basic Social Security estimate. For the first time, members saw a projection of what their total retirement picture might look like at retirement, and they received basic advice on how to improve their projections going forward. Second, we began sending pension plan data to our PSR outsourced administration provider so that they could load it to their web site and allow members to see combined data when using website tools.
Continuing an initiative begun several years ago, we also created and delivered bi-annual benefit statements to the active members of two of our smaller systems LRS and GJRS.

6

(continued)

Introductory
Section

Letter of Transmittal
Pre-Retirement Workshops For many years ERS has hosted a twice-monthly workshop for members who are within six months of their anticipated retirement dates. The topics have varied somewhat, but have primarily focused on information pertaining to the ERS pension plan and the PSR plans, as well as the application process.
Recognizing that our members' retirement concerns go beyond the plans that the System administers, we significantly enhanced the standing agenda for the workshops. As a result of partnerships with (among others) the Georgia Department of Community Health, the Georgia Department of Administrative Services, and the Georgia Technology Authority, the new agenda provides members with information about the State Health Benefit Plan, the State's Flexible Benefits offerings, Social Security, and the MORE retiree discount program, in addition to the System's plans.
Information Technology The most intensive project completed by the IT Division in fiscal year 2016 was the installation of upgraded core network hardware. Completed with no interruption in service to the rest of the staff or our membership, the upgraded network infrastructure incorporates additional security, redundancy, speed / network capacity, and reliability. Other cyber-security related initiatives included system penetration testing and social engineering, as well as staff security awareness training.

and the new factors were applied for retirements effective July 1, 2016 and later.
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,
James A. Potvin, Executive Director Employees' Retirement System of Georgia

Administration Projects One of the most common inquiries received by our Member Services Division is to provide "benefit verification" letters, which retirees sometimes require in order to verify their retirement income. Rather than having to wait several days for our response, retirees can now go to the self-service section of our website and produce these letters themselves, on-demand and within a matter of minutes. This has saved the System's staff considerable time in processing these requests and greatly sped up the response time experienced by our retirees.

Every five years, the plans are required to undergo an "experience study". These studies compare the actuarial assumptions, including mortality, retirement rates, etc., to the actual experience of the plan over the preceding five-year period. The Board then reviews the advice of our actuaries and makes changes to the assumptions for future years. Among the most significant impacts are changes to the factors we use in our pension calculation system to determine retiree estimated and final benefit amounts. Our most recent experience studies were completed in December 2015,

7

Introductory
Section
8

Introductory
Section
P P CC
Public Pension Coordinating Council Recognition Award for Funding
2016
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
9

Introductory
Section
Administrative Staff and Organization

James A. Potvin Executive Director

Angie Surface 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

Carolyn Kaplan Director
Financial Management 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., Sandy Springs, GA

*See page 75 in the Investment Section for a summary of fees paid to Investment Advisors. 10

Introductory
Section
Organizational Chart

Board of Trustees

Executive Director

Executive Support

Deputy Director

Investment Services Division

Financial Services Division

Information Technology
Division

Chief Operating
Officer

Financial Management
Division

Quality Assurance
Division

Peach State Reserves

Office
Administration

Member Services Division

11

Our Mission
Our mission is to be the guardian of the State of Georgia's retirement plans and promote a dignified retirement for the members, retirees, and their beneficiaries. Our vision is to demonstrate an unwavering commitment to delivering accurate and timely retirement benefits utilizing a knowledgeable staff and state-of-the-art technology to best serve the retirement needs of current and future members.
Our Values
Our Core Values are: Integrity Customer Service Operational Excellence Continuous Improvement and Innovation

E RSGA

Serving those who serve Georgia

Employees' Retirement System of Georgia

Financial
FinSaecntiocn ial
Section

Financial Section

ERS

GMPF

GJRS

ERSGA

LRS

PSR

GDCP

PSERS

E RSGA

Serving those who serve Georgia

Employees' Retirement System of Georgia

Financial Section

Independent Auditors' Report
The Board of Trustees Employees' Retirement System of Georgia:

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

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, 2016, and the related notes to the financial statements, which collectively comprise the System's basic financial statements, as listed in the table of contents.

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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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

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, 2016, and the changes in fiduciary net position for the year then ended in accordance with U.S. generally accepted accounting principles.
Emphasis of Matter As discussed in note 3 to the basic financial statements, the System adopted, in 2016, Governmental Accounting Standards Board Statement No. 72, Fair Value Measurement and Application. Our opinion is not modified with respect to this matter.
Report on Summarized Comparative Information We have previously audited the System's 2015 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated September 30, 2015. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2015 is consistent, in all material respects, with the audited financial statements 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 and related ratios, schedules of changes in employers' and nonemployers' net pension liability,

(continued) 13

Financial Section

schedule of investment returns, schedules of funding progress, and schedules of employer contributions on pages 15-21 and 5565 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 schedule of administrative expenses contributions and expenses and schedule of investment expenses are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The schedule of administrative expenses contributions and expenses and schedule of 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 schedule of administrative expenses contributions and expenses and schedule of investment expenses are fairly stated in all material respects in relation to the basic financial statements as a whole.
The Introductory, Investment, Actuarial, and Statistical sections have not been subject 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, 2016 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, 2016

PIC

14

Financial Section
Management's Discussion and Analysis (Unaudited) June 30, 2016
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, 2016. 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 $576.6 million, or 3.4%, from $17.0 billion at June 30, 2015 to $16.4 billion at June 30, 2016. The decrease in net position from 2015 to 2016 was primarily due to net disbursements exceeding investment returns.
For the year ended June 30, 2016, the total additions to net position were $1.0 billion compared to $1.3 billion for the year ended June 30, 2015. For the year ended June 30, 2016, the additions consisted of employer, nonemployer contributing entities (nonemployer), and member contributions totaling $816.3 million, insurance premiums of $4.5 million, net investment income of $192.8 million, and participant fees of $1.4 million.
Net investment income of $192.8 million in 2016 (comprised of interest and dividend income, the change in fair value of investments, and other, reduced by investment expenses) represents a $416.9 million decrease, compared to the net investment income of $609.6 million for the year ended June 30, 2015. The net investment income was lower in 2016 compared to 2015 due to lower returns in equity markets.
(continued) 15

Financial Section
Management's Discussion and Analysis (Unaudited)
The total deductions were $1.59 billion and $1.64 billion for the years ended June 30, 2016 and 2015, respectively. For the year ended June 30, 2016, the deductions consisted of benefit payments of $1.52 billion, refunds of $19.8 million, death benefits of $37.3 million, and administrative expenses of $16.2 million.
Benefit payments paid to retirees and beneficiaries had a slight decrease of $41.2 million, or 2.6%, from $1.56 billion in 2015 to $1.52 billion in 2016, resulting primarily from a decrease in participating employers in the 401(k) plan in 2016, coupled with a slight increase in the number of retirees and beneficiaries receiving benefits in 2016.
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 and Related Ratios (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 22. 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 24. 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 23 and 25, 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 26.
(continued) 16

Financial Section
Management's Discussion and Analysis (Unaudited)
Required Supplementary Information begins on page 55. 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 and Related Ratios 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 net 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 Related Ratios, 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 information begin on page 66. Additional information is presented, beginning on page 69, 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.
(continued) 17

Financial Section

Management's Discussion and Analysis (Unaudited) Financial Analysis of the System
A summary of the System's net position at June 30, 2016 and 2015 is as follows (dollars in thousands):

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

Net Position

2016

2015

Amount Change

Percentage Change

$

360,297

16,057,818

6,943

16,425,058

283,624 16,704,700
6,850 16,995,174

76,673) (646,882)
93) (570,116)

27.0) % (3.9) 1.4) (3.4)

43,706 $ 16,381,352

37,251 16,957,923

6,455) (576,571)

17.3) (3.4) %

(continued) 18

Financial Section

Management's Discussion and Analysis (Unaudited)
The following table presents the investment allocation at June 30, 2016 and 2015:

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 funds Commingled funds
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 funds Commingled funds

2016
47.8 % 14.5
0.6
13.8 --
14.1
0.5 1.1 -- 7.6

2015
48.8 % 16.5
0.3
11.4 0.1 14.2
0.5 1.0 -- 7.2

$ 7,673,204 2,332,236 93,885

$ 8,150,818 2,754,520 51,767

2,223,199 --
2,257,447

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

77,266 174,512
5,084 1,220,985 $ 16,057,818

77,112 173,609
5,271 1,198,895 $ 16,704,700

The total investment portfolio decreased by $647 million from 2015, which is primarily due to net disbursements exceeding investment returns.

(continued) 19

Financial Section

Management's Discussion and Analysis (Unaudited)
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 moneyweighted rate of return for the fiscal year ended June 30, 2016 was (7.23)%.
The investment rate of return in fiscal year ended June 30, 2016 was 1.4% with a (0.3)% return on equities, a 5.8% return on private equity (inception date of October 3, 2013) and a 5.5% return on fixed income investments. The five-year annualized rate of return on investments at June 30, 2016 was 7.4%, with an 8.9% return on equities and a 3.5% return on fixed income investments.
A summary of the changes in the System's net position for the years ended June 30, 2016 and 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 decrease in net position

Changes in Net Position

2016

2015

Amount Change

Percentage Change

$ 621,058 43,933
151,264 1,429 4,542
192,765 15
1,015,006

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

83,805 1,413
12,393 131 (226)
(416,861) 1
(319,344)

15.6 % 3.3 8.9
10.1 (4.7) (68.4) 7.1 (23.9)

1,518,314 19,762 37,256 16,245
1,591,577 $ (576,571)

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

(41,237) (11,282)
348 629 (51,542) (267,802)

(2.6) (36.3)
0.9 4.0 (3.1) 86.7 %

(continued) 20

Financial Section
Management's Discussion and Analysis (Unaudited)
Additions The System accumulates resources needed to fund benefit payments through contributions and returns on invested funds. In fiscal year 2016, total contributions increased $97.6 million, or 13.6%, primarily because of an increase in the employer contribution rates coupled with modest overall salary increases. Net investment income decreased by $416.9 million, or 68.4%, due to negative returns in foreign equity holdings. Deductions For fiscal year 2016, total deductions decreased 3.1%, primarily because of a 2.6% decrease in benefit payments resulting primarily from a decrease in participating employers in the 401(k) plan in 2015, coupled with a slight increase in the number of retirees and beneficiaries receiving benefits in 2016. Refunds decreased by 36.3%, which was primarily due to a decrease in the number of refunds processed during 2016. Death benefits increased by 0.9%, which was primarily due to an increase in the number of death claims processed during 2016. Administrative expenses increased by 4.0% over the prior year, primarily due to an increase in required employer retirement contributions, contractual services, and temporary services. 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.
21

Financial Section
Combining Statement of Fiduciary Net Position
June 30, 2016 (with comparative totals as of June 30, 2015) (In thousands)
22

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 Commingled funds 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

Defined Benefit Plans

$

29,450

Pooled Investment
Fund
157,913

Defined Contribution Plans

Georgia Defined Contribution
Plan
20,541

401(k) Plan
12,873

457 Plan
1,564

Eliminations

36,545 -- --
1,408 672
38,625

-- 42,131 53,612
14 --

878

2,116

343

355

--

--

--

--

--

--

472

82

--

--

--

95,757

1,233

2,588

425

(672)
(672)

Total
2016 222,341

2015 200,320

39,882 42,486 53,612
1,976 --
137,956

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

-- -- --
-- --
-- -- -- -- -- 14,969,966
14,969,966
6,943
15,044,984

2,181,601 --
2,210,608
77,266 174,512
7,662,885 2,331,018
93,885 -- -- --
14,731,775

14,985,445

41,598 --
46,839
-- --
-- -- -- -- -- --
88,437

110,211



4,970 586 --
2,457 671,872

679,885

695,346



5,349 632
2,627 549,113

557,721

559,710



-- (14,969,966)
(14,969,966)

(14,970,638)

2,223,199
2,257,447
77,266 174,512
7,673,204 2,332,236
93,885 5,084
1,220,985 --
16,057,818
6,943
16,425,058

1,900,292 10,005
2,382,411
77,112 173,609
8,150,818 2,754,520
51,767 5,271
1,198,895 --
16,704,700
6,850
16,995,174

24,767 --
672 --
25,439

$

15,019,545

1,478 14,001
-- 14,969,966
14,985,445


473 -- -- --
473
109,738

2,111
2,111
693,235

876
876
558,834

(672) (14,969,966)
(14,970,638)


29,705 14,001
-- --
43,706
16,381,352

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

See accompanying notes to financial statements.

Financial Section
Defined Benefit Plans Combining Statement of Fiduciary Net Position
June 30, 2016 (In thousands)
23

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 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

Employees' Retirement
System

Public School Employees Retirement System

$

28,592

136

Defined Benefit Pension Plans

Legislative Retirement
System
43

Georgia Judicial Retirement System
464

Georgia Military Pension Fund
78

Superior Court Judges
Retirement Fund
23

District Attorneys Retirement
Fund
3

Defined Benefit OPEB Plans

State Employees' Assurance Department
Active
14

State Employees' Assurance Department
OPEB
4

Survivors Benefit Fund
93

Defined Benefit Plans Total
29,450

35,033

--

28

1,484









--

--

--

--

--









--

--

--

--

--









--

1,341

61

1

5









--

--

--

--

--







80

592

36,374

61

29

1,489







80

592

--

36,545

--

--

--

--

--

1,408

--

672

--

38,625

--

--

--

--







--



--

--

--

--







--



--

--

--

--







--



--

--

--

--

--

--

--

--

--

--







--



--

--

--

--







--



--

--

--

--

--

--

--

--







--



--

--

--

--

--

--







--



--

--

--

--

--

--







--



--

--

12,324,526

804,666

31,088

401,705

17,714





240,948

1,028,448

120,871

14,969,966

12,324,526

804,666

31,088

401,705

17,714





240,948

1,028,448

120,871

14,969,966

6,943

















--

6,943

12,396,435

804,863

31,160

403,658

17,792

23

3

241,042

1,029,044

120,964

15,044,984

22,216

1,088

184

628

75

15

1

57

503

--

--

--

--











652

--

1

19











--

--

--

--











22,868

1,088

185

647

75

15

1

57

503

--

24,767

--

--

--

672

--

--

--

25,439

$ 12,373,567

803,775

30,975

403,011

17,717

8

2

240,985

1,028,541

120,964

15,019,545

See accompanying notes to financial statements.

Financial Section
Combining Statement of Changes in Fiduciary Net Position
Year ended June 30, 2016 (with comparative totals for the year ended June 30, 2015) (In thousands)
24

Additions: Contributions: Employer Nonemployer Member Participant fees Insurance premiums Administrative expense allotment

Defined Benefit Plans

Pooled Investment
Fund

Defined Contribution Plans

Georgia

Defined

Contribution

401(k)

457

Plan

Plan

Plan

$

591,076

43,933

39,271

--

4,542

15





29,982







--





14,708

79,422

17,413





1,429







--







--



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

-- -- -- (10,598) 184,636
174,038
853,325

(147,869) 338,575
-- (6,070) (184,636)



3,913 1,732
(54)
5,591
20,299

7,188 1
485 (2,393)
--
5,281
116,114

7,993
622 (760)

7,855
25,268

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

1,428,483 7,851
37,256 11,827 1,485,417 (632,092)
15,651,637 $ 15,019,545



35

46,508

43,288



11,911

--







--





766

2,832

820



12,712

49,340

44,108



7,587

66,774

(18,840)



102,151

626,461

577,674



109,738

693,235

558,834

Total

2016

2015

621,058 43,933
151,264 1,429 4,542 15

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

(128,775) 340,308
1,107 (19,875)

192,765
1,015,006

278,140 350,813
1,313 (20,640)
--
609,626
1,334,350

1,518,314 19,762 37,256 16,245
1,591,577
(576,571)

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

16,957,923 16,381,352

17,266,692 16,957,923

See accompanying notes to financial statements.

Financial Section
Defined Benefit Plans Combining Statement of Changes in Fiduciary Net Position
Year ended June 30, 2016 (In thousands)
25

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

Defined Benefit Pension Plans

Employees' Retirement
System

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

$ 583,082





4,754

1,990

1,199

51





--

591,076

12,484

28,580



2,869



--







--

43,933

31,961

1,925

328

5,507



--







--

39,721

--









--







--



--









--



611

3,931

--

4,542

10









4

1





--

15

-- -- -- (9,459) 150,751
141,292
768,829

(356) 10,165
9,809
40,314

(14) 377
363
691

(172) 5,227
5,055
18,185

(5) 245
240
2,230

-- -- -- -- --

1,203







--









--









--





(60)

(532)

--

(10,598)



3,169

13,091

1,611

184,636



3,109

12,559

1,611

174,038

52

3,720

16,490

1,611

853,325

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

1,347,633 7,087 -- 8,506
1,363,226

(594,397)

57,903 465
1,321
59,689

(19,375)

1,724 38
313
2,075

(1,384)

19,011 261 754
20,026

(1,841)

963
262
1,225

1,005

1,198 -- -- 4
1,202

1

51













3,345

33,911

1

67

599

52

3,412

34,510

--

1,428,483

--

7,851

--

37,256

--

11,827

--

1,485,417





2

(2)





308

(18,018)

1,609

(632,092)

Net position restricted for pensions and OPEB:

Beginning of year

12,967,964

823,150

32,359

404,852

16,712

7

2

240,677

1,046,559

119,355

15,651,637

End of year

$ 12,373,567

803,775

30,975

403,011

17,717

8

2

240,985

1,028,541

120,964

15,019,545

See accompanying notes to financial statements.

Financial Section

Notes to Financial Statements
June 30, 2016

(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 (SBF), 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 transactions among the various systems, departments, and funds have been eliminated. The Board of Trustees, comprised of active and retired members, ex-officio 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 425 employers and 1 nonemployer contributing entity participating in the plan during 2016.

Membership As of June 30, 2016, 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

48,449 57,995 59,766
166,210

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, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, post-retirement cost-of-living adjustments may also be made to members' benefits, provided the members
(continued) 26

Financial Section

Notes to Financial Statements
June 30, 2016

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. 472-290, the employer contribution for certain State Court employees is funded by the state on behalf of the local county employer.
Employer and nonemployer contributions as a percentage of covered payroll required for fiscal year 2016 were based on the June 30, 2013 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
1.35 % 4.75 18.62 24.72 %

New Plan
6.10 %
18.62 24.72 %

GSEPS
3.07 % --
18.62 21.69 %

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 182 employers and 1 nonemployer contributing entity participating in the plan during 2016.
Membership As of June 30, 2016, 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

17,626 50,672 34,874
103,172

(continued) 27

Financial Section

Notes to Financial Statements
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-ofliving 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, 2016 were $764.97 per active member and were based on the June 30, 2013 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 contributions, 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 2016.

Membership As of June 30, 2016, participation in LRS is as follows:

Inactive members and beneficiaries currently receiving benefits

257

Inactive members entitled to benefits but not yet receiving benefits

154

Active plan members

224

Total

635

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, 2016 based on the June 30, 2013 actuarial valuation.
(continued) 28

Financial Section

Notes to Financial Statements
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 93 employers and 1 nonemployer contributing entity participating in the plan during 2016.
Membership As of June 30, 2016, participation in GJRS is as follows:

Inactive members and beneficiaries currently receiving benefits

295

Inactive members entitled to benefits but not yet receiving benefits

61

Active plan members

526

Total

882

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 66% of state paid salary at retirement for district attorneys and superior court judges and 66% 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 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) 29

Financial Section

Notes to Financial Statements
Employer and nonemployer contributions required for fiscal year 2016 were based on the June 30, 2013 actuarial valuation as follows:

Employer and nonemployer: Normal Accrued liability
Total

14.36 % (2.17)
12.19 %

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, 2016, GMPF had 915 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, 2016 were $146.58 per active member and were based on the June 30, 2013 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 the premiums received from the aforementioned retirement systems, including interest earned on deposits and investments of such payments from active members. There were 477 employers participating in the plan during 2016.

(continued) 30

Financial Section

Notes to Financial Statements
As of June 30, 2016, participation in SEAD-Active is as follows:

Retirees and beneficiaries Terminated employees Active plan members
Total

31,869
31,869

Employee contribution rates as a percentage of member's salaries were appropriated for the fiscal year ending June 30, 2016 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, 2016.

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 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 a 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 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 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 477 employers participating in the plan during 2016.
As of June 30, 2016, participation in SEAD-OPEB is as follows:

Retirees and beneficiaries Terminated employees Active plan members
Total

40,793 918
31,869
73,580

(continued) 31

Financial Section
Notes to Financial Statements
Employee contribution rates as a percentage of member's salaries were appropriated for the fiscal year ending June 30, 2016 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, 2016.
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, 2016, SCJRF had 16 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, 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.
(continued) 32

Financial Section
Notes to Financial Statements
(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, 2016, 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 71 employers participating in the plan during 2016. There were 98,843 members as of June 30, 2016.
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
(continued) 33

Financial Section

Notes to Financial Statements

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 $265,000 base salary for both calendar year 2015 and 2016). 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).

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
34

(continued)

Financial Section
Notes to Financial Statements
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.
Participation As of June 30, 2016, the 401(k) plan had 55,542 participants with a balance. A total of 484 employers transmitted contributions to the plan during 2016.
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.
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.
Participation As of June 30, 2016, the 457 plan had 13,029 participants with a balance. A total of 319 employers transmitted contributions to the plan during 2016.
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.
(continued) 35

Financial Section

Notes to Financial Statements
(3) Significant Accounting Policies and System Asset Matters (a) Basis of Accounting The System's financial statements are prepared on the accrual basis of accounting. Contributions from the employers, nonemployers, and the members are recognized when due, based on statutory requirements. Retirement and refund payments are recognized as deductions when due and payable.

(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 and net asset value (NAV) as a practical expedient to fair value. Equity securities traded on a national or international exchange are valued at the last reported sales price. Investments in private investment companies are valued utilizing the NAVs provided by the underlying private investment companies as a practical expedient. The Fund applies the practical expedient to its investments in private investment companies on an investment by investment basis, and consistent with the Fund's entire position in a particular investment, unless it is probable that the Fund will sell a portion of an investment at an amount different from the NAV of the investment. 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. Fixed income securities are valued 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.

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, 2016:

Asset Class Fixed income Equities Alternative investments Cash and cash equivalents
Total
36

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

(continued)

Financial Section
Notes to Financial Statements
Approximately 13.8% of the investments held in trust for pension benefits are invested in debt securities of the U.S. government. 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, 2016, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was (7.23)%. 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.
(g) New Accounting Pronouncements During fiscal year 2016, the System adopted the provisions of GASB Statement No. 72, Fair Value Measurement and Application. This Statement addresses accounting and financial reporting issues related to fair value measurements and requires disclosures to be made about fair value measurements, the level of fair value hierarchy, and valuation techniques. See note 4(b) for disclosures related to GASB Statement No. 72.
During fiscal year 2016, the System adopted the provisions of GASB Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets that are Not Within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68. The objective is to improve the usefulness of information about pensions included in external financial reports for making decisions and assessing accountability. The implementation of GASB Statement No. 73 did not impact the recorded amounts in the financial statements. However, this statement did provide additional clarification on the reporting requirements of the System's required supplementary information.
During fiscal year 2016, the System adopted the provisions of GASB Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments which supersedes GASB Statement 55, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. The objective of this Statement is to identify the hierarchy of generally accepted accounting principles (GAAP) used to prepare financial statements for the purpose of improving the usefulness and comparability of those statements among governments. The implementation of GASB Statement No. 76 did not impact the recorded amounts in the financial statements.
During fiscal year 2016, the System adopted the provisions of GASB Statement No. 79, Certain External Investment Pools and Pool Participants. The objective of this Statement is to establish criteria for an external investment pool to qualify for making the election to measure all of its investments at amortized cost for financial statement reporting. There are no applicable reporting requirements for the System in fiscal year 2016.
(continued) 37

Financial Section
Notes to Financial Statements
(h) Reclassification Certain reclassifications to the 2015 amounts have been reclassified to conform to the current year presentation.
(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 $222,341,286 at June 30, 2016 with actual bank balances of $221,541,190. The System's bank balances of $192,749,710 are fully insured through the Federal Deposit Insurance Corporation, an independent agency of the U.S. government. The remaining bank deposits of $28,791,480 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.
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, 2016, the System held U.S. Treasury bonds of $2,223,199,350 and international government bonds of $77,266,420.
Obligations unconditionally guaranteed by agencies of the U.S. government. At June 30, 2016, the System did not hold agency bonds.
U.S. and foreign corporate obligations. At June 30, 2016, the System held U.S. corporate bonds of $2,257,446,930 and international corporate bonds of $174,512,200.
Private placements are authorized under the same general restrictions applicable to corporate bonds. At June 30, 2016, the System did not hold private placements.
(continued) 38

Financial Section
Notes to Financial Statements
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 O.C.G.A. to be domiciled in the United States. At June 30, 2016,
the System held domestic equities of $7,662,885,209.
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, 2016, the System held international equities of $560,489,939 and ADRs of $1,770,528,145.
Alternative investments are authorized (in statute) 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, 2016, the System held private equity investments of $93,885,264.
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 commingled funds, as authorized by the Board of Trustees. Participants may also contribute to a self-directed brokerage account that offers investments in various mutual funds and equities. At June 30, 2016, the deferred compensation plans held commingled funds of $1,220,983,650, mutual funds of $5,084,305, domestic equities of $10,319,627, and international equities of $1,217,435.
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) 39

Financial Section

Notes to Financial Statements
The units and fair value of each plan's equity in the pooled common investment fund at June 30, 2016 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
$ 12,324,526 804,666 31,088 401,705 240,948
1,028,448 120,871 17,714
$ 14,969,966

Units
3,059,682 199,766 7,718 99,727 59,818 255,322 30,007 4,398
3,716,438

Fair Value Measurements. The System categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the inputs used in valuation and gives the highest priority to unadjusted quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the hierarchy is based on whether the significant inputs into the valuations are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest level, Level 1, is given to unadjusted quoted prices in active markets and the lowest level, Level 3, to unobservable inputs.
Level 1 Valuations based on unadjusted quoted prices for identical instruments in active markets that the System has the ability to access.
Level 2 Valuations based on quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable.
Level 3 Valuations based on inputs that are unobservable and significant to the overall fair value measurement.
The System also has investments held through limited partnerships for which fair value is estimated using the NAV reported by the investment manager as a practical expedient to fair value. Such investments have not been categorized within the fair value hierarchy.
In instances where inputs used to measure fair value fall into different levels in the fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The System's assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each investment. The table on the following page shows the fair value leveling of the System's investments.

(continued) 40

Notes to Financial Statements

Financial Section
Fair Value Measures Using

Investments by Fair Value Level

Quoted prices in active
markets for identical assets
Level 1

Equities: Domestic International
Obligations: Domestic: U.S. Treasuries Corporate bonds International: Governments Corporate bonds
Mutual funds Commingled funds

$ 7,673,126,109 2,315,971,591
2,181,601,250 --
-- -- 5,084,305 68,015,131

Significant other
observable inputs Level 2
-- 16,263,928
41,598,100 2,257,446,930
77,266,420 174,512,200
-- 1,152,968,519

Significant unobservable
inputs Level 3
78,727 --
-- --
-- -- -- --

Total
7,673,204,836 2,332,235,519
2,223,199,350 2,257,446,930
77,266,420 174,512,200
5,084,305 1,220,983,650

Total investments by fair value level

$ 12,243,798,386 3,720,056,097

Investments measured at (NAV)(a) Private equity funds

Total investments

78,727

15,963,933,210

93,885,264 $ 16,057,818,474

(a) Certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position.

Equity securities classified in Level 1 are valued using prices quoted in active markets for those securities. Equity securities classified in Level 3 are valued using third party valuations not currently observable in the market.
Debt securities classified in Level 1 are valued using prices quoted in active markets. Debt securities classified in Level 2 are valued using either a bid evaluation or a matrix pricing technique. Bid evaluations may include market quotations, yields, maturities, call features and ratings. Matrix pricing is used to value securities based on the securities' relationship to benchmark quoted prices. These securities have nonproprietary information that was readily available to market participants, from multiple independent sources, which are known to be actively involved in the market.
Mutual funds and commingled funds classified in Level 1 are valued using prices quoted in active markets for those investment types. Commingled funds classified in Level 2 are valued using observable underlying inputs that are market corroborated.

(continued) 41

Financial Section

Notes to Financial Statements
Private equity funds are valued as described below.

Private Equity Funds

Investments measured at
NAV

$

93,885,264

Unfunded commitments
195,175,510

Redemption frequency (if currently eligible)
Not eligible

Redemption notice period
N/A

Investments in privately held limited partnerships are valued using the NAV provided by the general partner as of March 31 of each fiscal year, adjusted by the System for cash flows through June 30. The quarterly values of the partnership investments provided from the general partner are reviewed by the System to determine if any adjustments are necessary. The types of partnership strategies held include growth equity, leveraged buyouts and mezzanine debt. Three of the thirteen partnerships held are secondary investments and are in or nearing the wind-up phase of the fund. Excluding a debt partnership with a remaining term of approximately two years, the remaining investments typically have an approximate life of eight ten years. These investments are considered illiquid since the nature of these private investments prohibits redemption with the fund; instead, distributions are received from the general partner through liquidation of the underlying assets of the fund. The System currently has no plans to sell any of the investments prior to their liquidation resulting in these assets being carried at the NAV estimated by the general partner and adjusted for second quarter cash flows by the System.
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 holds one bond which was downgraded to a rating below "A". 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, 2016 are shown in the chart on the following page:

(continued) 42

Financial Section

Notes to Financial Statements

Quality Ratings of Fixed Income Investments Held at June 30, 2016

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

Standard & Poor's/ Moody's
Quality Rating

June 30,2016 Fair Value

AAA/Aaa AA/Aaa AA/Aa
A/Aa AA/A A/A BBB/Baa

$ 2,223,199,350
201,737,130 200,927,080 259,330,440
82,543,230 483,142,960 952,642,890
77,123,200
2,257,446,930

A/Aa
AA/Aa A/Aa

77,266,420
76,855,240 97,656,960
174,512,200 $ 4,732,424,900

Mutual funds, commingled funds, and various equities of the deferred compensation plans are not considered to have credit risk and do not require disclosure of credit risk rating.
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, 2016, 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 on the following page quantifies to the fullest extent possible the interest rate risk of the System's fixed income assets.

(continued) 43

Financial Section

Notes to Financial Statements

Effective Duration of Fixed Income Assets

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

Fair Value June 30, 2016

Percent of All Fixed Income Assets

Effective Duration (Years)

$ 2,223,199,350 2,257,446,930
77,266,420 174,512,200 $ 4,732,424,900

47.0 %

6.1

47.7

3.5

1.6

1.3

3.7

1.5

100.0 %

4.6

Mutual funds, commingled funds and various equities of the deferred compensation plans are not considered to have interest rate risk and do not require disclosure of interest rate risk.
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, 2016, the System's exposure to foreign currency risk in U.S. Dollars is highlighted in the table on the following page:

44

(continued)

Notes to Financial Statements

Financial Section

International Investment Securities at Fair Value as of June 30, 2016

Currency
Australian Dollar Brazilian Real British Pound Canadian Dollar Czech Krone Danish Krone Euro Hong Kong Dollar Indonesian Rupiah Japanese Yen Malaysian Ringgit Mexican Peso New Taiwan Dollar 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

Equities
$ 28,346,870 15,742,601 64,127,331 5,972,000 425,552 10,194,781 67,861,200 36,711,100 5,612,989
105,426,652 9,314,555 8,996,447
35,071,268 5,439,930 2,379,753
14,768,950 29,445,741 54,259,633 29,347,199 14,785,191 16,260,196
560,489,939

Fixed Income
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
--

Investment Securities Payable in U.S. Dollars

1,770,528,145

251,778,620

Total International Investment Securities - at Fair Value

$ 2,331,018,084

251,778,620

Total
28,346,870 15,742,601 64,127,331
5,972,000 425,552
10,194,781 67,861,200 36,711,100
5,612,989 105,426,652
9,314,555 8,996,447 35,071,268 5,439,930 2,379,753 14,768,950 29,445,741 54,259,633 29,347,199 14,785,191 16,260,196
560,489,939
2,022,306,765
2,582,796,704

(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 $3,298,466,014 at fair value at June 30, 2016. The collateral value was equal to 105.4% of the loaned securities' value at June 30, 2016. The System's lending collateral was held in the System's name by the tri-party custodian.
(continued) 45

Financial Section

Notes to Financial Statements

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.

(6) Capital Assets

The following is a summary of capital assets and depreciation information as of and for the year ended June 30, 2016:

Capital assets: Land Building Equipment Vehicles Computer software

Balance at June 30, 2015

Additions

Balance at Disposals June 30, 2016

$ 4,320,718 2,800,000 2,638,686 13,382
14,344,609
24,117,395

21,069
399,869
420,938

(32,132)
(32,132)

4,341,787 2,800,000 3,006,423
13,382 14,344,609
24,506,201

Accumulated depreciation for: Building Equipment Vehicles Computer software
Capital assets, net

(770,000) (2,139,481)
(13,382) (14,344,609)
(17,267,472)
$ 6,849,923

(70,000) (249,729)

(319,729)
101,209

23,982

23,982
(8,150)

(840,000) (2,365,228)
(13,382) (14,344,609)
(17,563,219)
6,942,982

During fiscal year 2016, 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, 2016, the System had committed to fund certain private equity partnerships for a total capital commitment of $300,750,000. Of this amount, $195,175,510 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, 2016 were as follows (dollars in thousands):

Total pension liability Plan fiduciary net position

$

17,103,987

12,373,567

Employers' and nonemployers' net pension liability

$

4,730,420

Plan fiduciary net position as a percentage of the total pension liability

72.34%

46

(continued)

Financial Section

Notes to Financial Statements
Actuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2015, using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation Salary increases Investment rate of return

2.75% 3.25 - 7.00%, including inflation 7.50%, net of pension plan investment expense, including inflation

Post-Retirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries projection scale BB and set forward 2 years for both males and females for service retirements and dependent beneficiaries. The RP-2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society of Actuaries projection scale BB and set back 7 years for males and set forward 3 years for females was used for death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB.

The actuarial assumptions used in the June 30, 2015 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014.

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 equities Domestic mid equities Domestic small equities International developed market stocks International emerging market stocks Alternatives
Total

Target Allocation
30.00 % 37.20
3.40 1.40 17.80 5.20 5.00
100.00 %

Long-term Expected Real Rate of Return*
(0.50) % 9.00 12.00 13.50 8.00 12.00 10.50

* Rates shown are net 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.

(continued) 47

Financial Section

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):

Employers' and nonemployers' net pension liability

1% Decrease (6.50%)
$ 6,410,596

Current Discount
Rate (7.50%)
4,730,420

1% Increase (8.50%)
3,298,576

Actuarial valuation date: June 30, 2015 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2016 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, 2016 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

992,292 803,775
188,517
81.00%

Actuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2015, using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation Salary increases Investment rate of return

2.75% n/a 7.50%, net of pension plan investment expense, including inflation

Post-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirement and for dependent beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward 5 years for both males and females) was used for death after disability retirement. Rates of mortality in active service were based on the RP2000 Employee Mortality Table projected to 2025 with projection scale BB.

The actuarial assumptions used in the June 30, 2015 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014.

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 table on the following page:

(continued) 48

Financial Section

Notes to Financial Statements

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

Target Allocation
30.00 % 37.20
3.40 1.40 17.80 5.20 5.00
100.00 %

Long-term Expected Real Rate of Return*
(0.50) % 9.00 12.00 13.50 8.00 12.00 10.50

* Rates shown are net 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%)

$

299,133

Current Discount
Rate (7.50%)
188,517

1% Increase (8.50%)
95,548

Actuarial valuation date: June 30, 2015 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2016 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, 2016 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

26,142 30,975
(4,833)
118.49%

(continued) 49

Financial Section

Notes to Financial Statements
Actuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2015, using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation Salary increases Investment rate of return

2.75% None 7.50%, net of pension plan investment expense, including inflation

Post-retirement mortality rates were based on the RP-2000 Combined Mortality Table projected to 2025 with projection scale BB (set forward 2 years for both males and females) for the period after service retirement. The RP-2000 Employee Mortality Table projected to 2025 using projection scale BB was used for deaths in active service.

The actuarial assumptions used in the June 30, 2015 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014.

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 Alternatives
Total
* Rates shown are net of inflation.

Target Allocation
30.00 % 37.20
3.40 1.40 17.80 5.20 5.00
100.00 %

Long-term Expected Real Rate of Return*
(0.50) % 9.00 12.00 13.50 8.00 12.00 10.50

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%)

$

(2,380)

Current Discount
Rate (7.50%)
(4,833)

1% Increase (8.50%)
(6,902)

(continued) 50

Financial Section

Notes to Financial Statements
Actuarial valuation date: June 30, 2015 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2016 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.

(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, 2016 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

368,669 403,011
(34,342)
109.32%

Actuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2015, using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation Salary increases Investment rate of return

2.75% 4.50%, including inflation 7.50%, net of pension plan investment expense, including inflation

Mortality rates were based on the RP-2000 Combined Mortality Table projected to 2025 with projection scale BB and set forward 2 years for both males and females for the period after retirement and for dependent beneficiaries. For the period after disability retirement, the RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB and set back 7 years for males and set forward 3 year for females is used. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB.

The actuarial assumptions used in the June 30, 2015 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014.

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 Alternatives
Total
* Rates shown are net of inflation.

Target Allocation
30.00 % 37.20
3.40 1.40 17.80 5.20 5.00
100.00 %

Long-term Expected Real Rate of Return*
(0.50) % 9.00 12.00 13.50 8.00 12.00 10.50

(continued) 51

Financial Section

Notes to Financial Statements
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%)

$

1,701

Current Discount
Rate (7.50%)
(34,342)

1% Increase (8.50%)
(65,684)

Actuarial valuation date: June 30, 2015 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2016 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, 2016 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

36,950 17,717
19,233
47.95%

Actuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2015, using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation Salary increases Investment rate of return

2.75% n/a 7.50%, net of pension plan investment expense, including inflation

Post-retirement mortality rates were based on the RP-2000 Combined Mortality Table projected to 2025 with projection scale BB (set forward 2 years for both males and females) for the period after service retirement. The RP-2000 Employee Mortality Table projected to 2025 using projection scale BB was used for deaths in active service.

The actuarial assumptions used in the June 30, 2015 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014.

(continued) 52

Financial Section

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 Alternatives

Target Allocation
30.00 % 37.20
3.40 1.40 17.80 5.20 5.00

Long-term Expected Real Rate of Return*
(0.50) % 9.00 12.00 13.50 8.00 12.00 10.50

Total * Rates shown are net of inflation.

100.00 %

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):

Employers' net pension liability

1% Decrease (6.50%)

$

24,686

Current Discount
Rate (7.50%)
19,233

1% Increase (8.50%)
14,804

Actuarial valuation date: June 30, 2015 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2016 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) 53

Financial Section

Notes to Financial Statements (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, 2015, the most recent actuarial valuation date, are as follows (dollar amounts in thousands):

SEAD - Active SEAD - OPEB

Actuarial Value of Plan Assets
(a)

$

240,677

1,046,559

Actuarial Accrued Liability (AAL) Projected Unit Credit
(b)
21,723 769,747

Unfunded AAL/ (Funded Excess) (b-a)
(218,954) (276,812)

Funded Ratio (a/b)
1,107.9 %
136.0

Annual Covered Payroll
(c)
$ 1,521,741 1,521,741

Unfunded AAL/ (Funded Excess) as Percentage of Covered Payroll
[(b-a)/c]
(14.4) %
(18.2)

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
1 Includes inflation rate of 2.75%.

SEAD-Active
June 30, 2015 Projected Unit Credit Level dollar, open N/A Market value of assets

SEAD-OPEB
June 30, 2015 Projected Unit Credit Level dollar, open N/A Market value of assets

7.50%
3.25-7.00% 4.50% -- N/A

7.50%
3.25-7.00% 4.50% -- N/A

54

Financial Section
Required Supplementary Information (UNAUDITED) Schedules of Employers' and Nonemployers' Contributions - Defined Benefit Pension Plans
For year ended June 30 (In thousands)
(continued) 55

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

Year Ended
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 6/30/2016
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 6/30/2016
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 6/30/2016

Actuarially Determined Contribution
(a)

$

270,141

286,256

282,103

263,064

261,132

273,623

358,376

428,982

517,220

595,124

6,490 2,869 5,529 5,530 7,509 15,884 24,829 27,160 28,461 28,580

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

Contributions in relation to the actuarially determined contribution
(b)
270,141 286,256 281,206 263,064 261,132 274,034 358,992 429,752 518,163 595,566

Contribution deficiency (excess)
(a-b)
-- -- 897 -- -- (411) (616) (770) (943) (442)

6,490

--

2,869

--

5,529

--

5,530

--

7,509

--

15,884

--

24,829

--

27,160

--

28,461

--

28,580

--

62

(62)

73

(73)

71

(71)

75

(75)

75

(75)

76

(76)

128

(128)

45

(45)

--

--

--

--

Covered employee
payroll (c)
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 2,390,457
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)
10.1 % 10.2 10.5 10.2 10.5 11.3 15.4 18.4 22.0 24.9
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 Section
Required Supplementary Information (UNAUDITED) Schedules of Employers' and Nonemployers' Contributions - Defined Benefit Pension Plans
For year ended June 30 (In thousands)
56

Georgia Judicial Retirement System
Georgia Military Pension Fund4

Year Ended
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 6/30/2016
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 6/30/2016

Actuarially Determined Contribution
(a)

$

1,778

2,395

1,703

2,600

1,932

2,083

2,279

2,375

4,261

7,623

1,005 1,103 1,323 1,434 1,282 1,521 1,703 1,892 1,893 1,990

Contributions in relation to the actuarially determined contribution
(b)

Contribution deficiency (excess)
(a-b)

1,778

--

2,395

--

1,703

--

2,600

--

1,932

--

2,083

--

2,279

--

2,375

--

4,261

--

7,623

--

1,005

--

1,103

--

1,323

--

1,434

--

1,282

--

1,521

--

1,703

--

1,892

--

1,893

--

1,990

--

Covered employee
payroll (c)
48,621 51,102 52,803 51,293 52,331 51,898 52,807 54,787 54,272 57,401
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 % 4.7 3.2 5.1 3.7 4.0 4.3 4.3 7.9 13.3
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. 2 No 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 from 2007-2014 that were not required. 4 No 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 Section

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

June 30, 2016 June 30, 2015 June 30, 2014

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

17,103,937 12,373,567
4,730,370
72.34 % 2,390,457
197.89 %

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 %

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

992,292 803,775
188,517
81.00 % n/a n/a

946,200 823,150
123,050
87.00 % n/a n/a

930,745 821,733
109,012
88.29 % n/a n/a

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

$

26,142

30,975

$

(4,833)

118.49 % n/a
n/a

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 % of covered-employee payroll

368,669 403,011
(34,342)
109.32 % 57,401 (59.83) %

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

$

36,950

17,717

$

19,233

47.95 % n/a
n/a

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.

25,271 32,359 (7,088) 128.05 %
n/a n/a
357,081 404,852 (47,771)
113.38 % 54,272 (88.02) %
33,343 16,712 16,631
50.12 % n/a n/a

25,216 32,794 (7,578) 130.05 %
n/a n/a
350,443 400,790 (50,347)
114.37 % 54,787 (91.90) %
31,511 15,251 16,260
48.40 % n/a n/a

57

Financial Section
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, 2016 June 30, 2015 June 30, 2014

$

143,043

1,225,650

--

(238)

70,890

(1,347,633)

(7,087)

84,625

17,019,362

17,103,987

583,082 12,484 31,961 10
141,292 (1,347,633)
(8,506) (7,087)
--
(594,397)
12,967,964

12,373,567

$

4,730,420

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

(continued) 58

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

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)

June 30, 2016 June 30, 2015 June 30, 2014

$

11,952

68,776

--

(9,483)

33,215

(57,903)

(465)

46,092

946,200

992,292

28,580 1,925 9,809
(57,903) (1,321) (465) --
(19,375)
823,150

803,775

$

188,517

12,088 67,652
-- (6,858)
-- (56,972)
(455)
15,455
930,745
946,200
28,461 1,800
30,129 (56,972)
(1,545) (456) --
1,417
821,733
823,150
123,050

11,049 66,143
-- -- -- (56,189) (514)
20,489
910,256
930,745
27,160 1,659
123,799 (56,189)
(1,450) (514) --
94,465
727,268
821,733
109,012

(continued) 59

Financial Section
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, 2016 June 30, 2015 June 30, 2014

$

331

1,829

--

(465)

938

(1,724)

(38)

871

25,271

26,142

-- 328 363 (1,724) (313) (38) --
(1,384)
32,359

30,975

$

(4,833)

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)

(continued) 60

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

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)

June 30, 2016 June 30, 2015 June 30, 2014

$

12,713

26,058

--

(3,603)

(4,308)

(19,011)

(261)

11,588

357,081

368,669

4,754 2,869 5,507 5,055 (19,011)
(754) (261)
--
(1,841)
404,852

403,011

$

(34,342)

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)

(continued) 61

Financial Section
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, 2016 June 30, 2015 June 30, 2014

$

73

2,465

--

950

1,082

(963)

--

3,607

33,343

36,950

1,990 -- 240
(963) (262)
-- --
1,005
16,712

17,717

$

19,233

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 schedules and accompanying independent auditors' report.

62

Financial Section

Required Supplementary Information (UNAUDITED)
Schedule of Investment Returns For the year ended June 30, 2016

2016

Pooled Investment Fund: Annual money-weighted rate of return, net of investment expense

(7.23) %

Schedule is 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.

2015
(5.23) %

2014
(5.95) %

63

Financial Section
Required Supplementary Information (UNAUDITED) Schedules of Funding Progress - Defined Benefit OPEB Plans
June 30, 2016 (In thousands)
64

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

Actuarial valuation
date
6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015
6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015

Actuarial value of plan assets
(a)

$

156,132

184,783

183,390

204,779

235,358

240,677

680,449 807,893 818,284 907,831 1,037,901 1,046,559

Actuarial accrued liability (AAL) projected unit credit
(b)
40,523 40,145 39,317 37,512 35,877 21,723
691,001 678,421 704,617 754,786 788,020 769,747

Unfunded AAL/ (funded excess)
(b-a)
(115,609) (144,638) (144,073) (167,267) (199,481) (218,954)
10,552 (129,472) (113,667) (153,045) (249,881) (276,812)

Funded ratio (a/b)
385.3 % 460.3 466.4 545.9 656.0 1,107.9
98.5 119.1 116.1 120.3 131.7 136.0

Annual covered payroll
(c)
$ 2,401,974 2,166,982 1,962,800 1,767,052 1,628,712 1,521,741
2,401,974 2,166,982 1,962,800 1,767,052 1,628,712 1,521,741

Unfunded AAL/ (funded excess) as percentage of covered payroll
[(b-a)/c]
(4.8) % (6.7) (7.3) (9.5) (12.2) (14.4)
0.4 (6.0) (5.8) (8.7) (15.3) (18.2)

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.

Financial Section

Required Supplementary Information (UNAUDITED)

Schedules of Employer Contributions-Defined Benefit OPEB Plans June 30, 2016 (In thousands)

Year ended June 30

State annual required
contribution

Percentage contributed

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

2010 2011 2012 2013 2014 2015
2010 2011 20121 20131 2014 2015

$

--

--

--

--

--

--

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

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

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

65

Financial Section
Notes to Required Supplementary Information (UNAUDITED)
June 30, 2016
(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 and Related Ratios 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 - on December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal.
Legislative Retirement System Changes of benefit terms - none.
Changes of assumptions - on December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, and withdrawal. The expectation of retired life mortality was changed to the RP-2000 Combined Mortality Table projected to 2025 with projection scale BB and set forward 2 years for both males and females.
(continued) 66

Financial Section

Notes to Required Supplementary Information (UNAUDITED)
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 - on December 17, 2015, the board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, and withdrawal.
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, 2013, 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 Investment rate of return

ERS
Entry age Level dollar, closed 25 years 5-year smoothed market 3.00% 5.45-9.25% 7.50% net of pension plan investment expense, including inflation

PSERS
Entry age Level dollar, closed 25 years 5-year smoothed market 3.00% n/a 7.50% net of pension plan investment expense, including inflation

LRS
Entry age Level dollar, closed n/a 5-year smoothed market 3.00% 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 Investment rate of return

GJRS
Entry age Level percent of pay, closed 20 years 5-year smoothed market 3.00% 6.00% 7.50% net of pension plan investment expense, including inflation

GMPF
Entry age Level dollar, closed 20 years 5-year smoothed market 3.00% 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 recognizes a portion of the difference between the fair value of assets and the expected actuarial value of assets, based on the assumed valuation rate of return. The amount recognized each year is 1/7th of the difference between fair value and expected actuarial value.
(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) 67

Financial Section

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 SEADActive 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, 2015 Projected Unit Credit Level dollar, open n/a Market value of assets
7.50%
3.25-7.00% 4.50% 0.00%

SEAD - Active June 30, 2014 Projected Unit Credit Level dollar, open 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, 2015 Projected Unit Credit Level dollar, open n/a Market value of assets
7.50%
3.25-7.00% 4.50% 0.00%

SEAD - OPEB June 30, 2014 Projected Unit Credit Level dollar, open 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 2.75% in the 2015 valuations.

68

Financial Section

Additional Information

Schedule of Administrative Expenses - Contributions and Expenses Year ended June 30, 2016 (with comparative amounts for the year ended June 30, 2015) (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 fringes 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.

2016

2015

$

8,506 $

7,872

1,321

1,545

313

169

754

819

67

47

599

428

766

990

2,832

2,755

820

866

262

121

4

3

1

1

16,245

15,616

5,074 1,211
360 1,546
73
8,264
245 14 64 14
337
709 792 3,175 428 180 260
39
5,583

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

617

617

966

621

77

57

20

18

3

3

320

352

55

53

3

3

1,444

1,107

16,245

15,616

$

$



69

Financial Section

Additional Information
Schedule of Investment Expenses Year ended June 30, 2016 (with comparative amounts for the year ended June 30, 2015)

Investment advisory and custodial fees Miscellaneous
Total investment expenses

2016

2015

$

6,070,210 $

7,442,722

13,805,757

13,196,528

$

19,875,967 $

20,639,250

See accompanying independent auditors' report.

70

Investment
FinSaecntiocn ial
Section

Investment Section

ERS

GMPF

GJRS

ERSGA

LRS

PSR

GDCP

PSERS

E RSGA

Serving those who serve Georgia

Employees' Retirement System of Georgia

Investment Section

Investment Overview

While worldwide economic concerns remain in the forefront of investors' minds, it is politics that seems to have moved to the forefront of market worries. The concerns are too numerous to name, but the biggest problems currently seem to be Brexit and the U.S. election. The economy continued its slow growth with real GDP increasing 1.3% year over year. Generally, global growth remains concentrated in Asia and emerging markets. Despite relatively slow growth, low inflation and political uncertainty, the U.S. economy is performing better than most developed economies. The U.S. stock market had a subpar return of 3.6% for the fiscal year.
It is important to remember the pension plan has a long-term investment horizon and that short-term concerns should not drive the investment decisions. The System continues to invest in a mix of liquid, high quality bonds and stocks. In addition, the System continues to build its 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.

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 3.6%. 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 1.3% and 0.0%, respectively. The search for yield led to outsized returns for the Utilities and Telecom sectors while Financials and Energy had negative returns.
International markets, on the other hand, had negative returns. The MSCI EAFE Index had a (10.2)% return and the MSCI Emerging Market Index had a return of (12.1)%. In a reversal from the prior year, the dollar was down about 1% against foreign currencies.

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 although there was not broad based strength. Industrial production has been erratic and decreased slightly on a year over year basis. Employment and consumer demand remained relatively strong. Likewise, foreign economies presented a mixed bag of strength and weakness. For the most part central banks remained accommodative, though the Federal Reserve Bank did raise short term rates by 0.25% in December of 2015.
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.

Interest rates declined again so the longer the maturity of the bond the better the performance. The total return on the 10-year Treasury Note was 9.5% and the 30-year Treasury Bond had a 20.6% return. The return on short-term Treasury bills was 0.1%.
We look at two fixed income indexes to measure the bond market's performance. The Barclays Government / Credit Index had a return of 6.7%. 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 6.1% and is a broad index containing higher rated corporate bonds as well as Treasuries and Government securities. In another change from the prior year, higher quality bonds underperformed lower quality bonds as evidenced by a 1.5% outperformance of BBB rated bonds versus AA 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

72

Pooled Investment Fund
As of June 30, 2016 (Dollar amounts in thousands)
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

Investment Section

$

12,324,526

804,666

31,088

401,705

240,948

1,028,448

120,871

17,714

$

14,969,966

1 year 3 year 5 year 10 year 20 year

Equities
(0.3)% 8.7 % 8.9 % 6.1 % 7.1 %

S&P 1500
3.6 % 11.5 % 11.9 % 7.5 % 8.2 %

MSCI ACWI ex US

Fixed Income

(10.2)%

5.5 %

1.2 %

3.5 %

0.1 %

3.5 %

1.9 %

5.1 %

--

6.1 %

Barclay's Govt/Credit
6.7 % 4.2 % 4.1 % 5.2 % 5.7 %

1 Month T-Bills

Total Portfolio

0.1 %

1.4 %

0.1 %

7.3 %

--

7.4 %

0.9 %

6.4 %

2.2 %

7.1 %

Note: Time-weighted rates of return are calculated using the Daily Valuation method based on market rates of return. 73

CPI
1.1 % 1.1 % 1.3 % 1.7 % 2.2 %

Asset Allocation at Fair Value

Investment Section

Investment Summary
Asset Allocation as of June 30 (in percentages)
Equities Fixed Income Mutual and Commingled Funds Private Equity Total

2016
62.3% 29.5
7.6 0.6
100%

2015
65.3 27.2
7.2 0.3

2014
67.2 25.6
7.1 0.1

2013
68.1 25.0
6.9 --

2012
65.9 27.3
6.8 --

2011
67.2 26.2
6.6 --

100

100

100

100

100

Asset Allocation as of June 30 (in millions)
Equities Fixed Income Mutual and Commingled Funds Private Equity Total

2016
$ 10,005 4,733 1,226 94

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 --

$ 16,058 16,714 16,917 15,242 14,567 14,954

74

Investment Section

Schedule of Fees and Commissions
For the Year Ended June 30, 2016
Investment Advisors' Fees:* U.S. Equity International Equity Fixed Income
Investment Commissions: U.S. Equity International Equity
Transaction Fees: Miscellaneous:*
Total Fees and Commissions
*Amount included in total investment expenses shown on page 70.

$

2,841,919

2,808,609

--

1,477,338 3,082,867
452,923 16,707,650

$

27,371,306

75

Investment Section

Twenty Largest Equity Holdings
As of June 30, 2016

Shares
1,589,926 207,161
2,774,194 1,481,213 1,069,460
929,100 137,051 1,684,892 2,610,994 853,019 1,018,488 2,694,270 565,700 1,274,088 1,812,294 1,641,243 969,700 1,543,390 2,037,324 600,486

Company
Apple Inc. Alphabet Inc. Microsoft Corp. Exxon Mobil Corp. Johnson & Johnson Facebook, Inc. Amazon.Com Inc. Verizon Communications Inc. Pfizer Inc. Chevron Corp. Procter & Gamble Co. General Electric Co. Berkshire Hathaway Inc. JPMorgan Chase & Co. AT&T Inc. Wells Fargo & Co. Visa Inc. Coca Cola Co. Intel Corp. PepsiCo 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.

Fair Value $ 151,996,926
144,640,743 141,955,507 138,848,907 129,725,498 106,177,548
98,076,437 94,084,369 91,933,099 89,421,982 86,235,379 84,815,620 81,907,703 79,171,828 78,309,224 77,680,031 71,922,649 69,961,869 66,824,227 63,615,485
$ 1,947,305,031 8,046,598,263
$ 9,993,903,294

76

Investment Section

Fixed Income Holdings*
As of June 30, 2016

Issuer

Year of Maturity

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

2024 2017 2023 2021 2022 2024 2039 2028 2026 2020 2019 2019 2022 2021 2025 2019 2020 2018 2019 2018 2019 2016 2018 2018 2017 2017 2017 2021 2021 2017 2017 2017 2017 2022 2021 2021 2021 2035 2018 2018 2019 2017 2020 2019 2045 2022 2022 2017

ERS Fixed Income Securities Defined Contribution Fixed Income Securities

Interest Rate
2.2500 1.8750 1.5000 2.1250 2.7000 2.3750 3.5000 5.2500 5.5500 2.6500 1.6250 1.6250 1.8750 2.2220 2.7000 1.6250 2.5210 1.6000 1.8190 1.9000 1.9000 0.8750 1.6620 1.2000 1.1000 1.1250 1.2500 3.1250 3.1250 1.1000 1.1250 1.4000 1.1700 1.6250 3.3000 2.2500 3.3000 3.5000 1.6500 1.5000 1.9500 0.9000 2.4500 1.0000 2.8750 1.7500 1.7500 0.8750

Total ERS and Defined Contribution Fixed Income Securities

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

77

Par Value

$

309,000,000

254,000,000

200,000,000

155,000,000

145,000,000

136,000,000

115,000,000

102,000,000

92,000,000

112,000,000

102,000,000

102,000,000

100,000,000

100,000,000

97,000,000

97,000,000

96,000,000

96,000,000

96,000,000

96,000,000

96,000,000

97,000,000

96,000,000

96,000,000

96,000,000

96,000,000

96,000,000

79,000,000

77,000,000

77,000,000

77,000,000

77,000,000

77,000,000

64,000,000

59,000,000

60,000,000

58,000,000

58,000,000

58,000,000

58,000,000

48,000,000

48,000,000

39,000,000

34,000,000

30,000,000

30,000,000

30,000,000

20,000,000

$ 4,433,000,000

85,000,000

$ 4,518,000,000

Fair Value

$

329,616,480

258,157,980

202,882,000

163,343,650

152,177,500

146,391,760

145,133,450

143,573,160

114,685,360

106,908,480

104,721,360

104,606,100

103,934,000

103,105,000

100,279,570

99,633,550

99,036,480

98,043,840

97,822,080

97,656,960

97,536,000

97,110,580

97,108,800

96,245,760

96,238,080

96,084,480

95,992,320

86,915,800

82,543,230

77,266,420

77,189,420

77,123,200

76,855,240

65,630,080

63,963,670

61,732,800

61,463,180

60,010,860

58,872,900

58,578,840

49,128,480

48,031,200

40,680,900

34,261,800

33,686,700

31,005,600

30,997,200

20,026,000

$ 4,643,988,300

88,436,600

$ 4,732,424,900

Actuarial
FinSeactnioncial
Section

Actuarial Section

ERS

GMPF

GJRS

ERSGA

LRS

PSR

GDCP

PSERS

E RSGA

Serving those who serve Georgia

Employees' Retirement System of Georgia

Actuarial Section

ERS April 21, 2016

3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700 Fax (678) 388-1730 www.CavMacConsulting.com

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, 2015. 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 21.66% of compensation for GSEPS Members for the fiscal year ending June 30, 2018 are sufficient to support the benefits of the System.
Since the previous valuation, various assumptions and methods have been revised to reflect the results of the experience investigation for the five-year period ending June 30, 2014.

under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). 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.
The Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports.

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 2015 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

We have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report:
Summary of Actuarial Assumptions Schedule of Active Members Schedule of Funding Progress Schedule of Retirees Added to and Removed from Rolls Analysis of Change in Unfunded Accrued Liability Solvency Test Results
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

(continued) 79

Actuarial Section

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.

Sincerely yours,

Edward A. Macdonald, ASA, FCA MAAA President

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

Cathy Turcot Principal and Managing Director

80

Actuarial Section

PSERS April 21, 2016

3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700 Fax (678) 388-1730 www.CavMacConsulting.com

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, 2015. Based on a monthly benefit accrual rate of $14.75, the valuation indicates that annual employer contributions of $27,705,000 or $780.92 per active member for the fiscal year ending June 30, 2018 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, 2015 and on January 1, 2016.

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 financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). 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.

Since the previous valuation, various assumptions and methods have been revised to reflect the results of the experience investigation for the five-year period ending June 30, 2014.
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 2015 session of the General Assembly.
The System is funded on an actuarial reserve basis. The actuarial

The Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports.
We have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report:
Summary of Actuarial Assumptions Schedule of Active Members Schedule of Funding Progress Schedule of Retirees Added to and Removed from Rolls Analysis of Change in Unfunded Accrued Liability Solvency Test Results
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

(continued) 81

Actuarial Section

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.

Sincerely yours,

Edward A. Macdonald, ASA, FCA MAAA President

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

Cathy Turcot Principal and Managing Director

82

Actuarial Section

GJRS April 21, 2016

3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700 Fax (678) 388-1730 www.CavMacConsulting.com

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, 2015. The report indicates that annual employer contributions at the rate of 7.17% of compensation for the fiscal year ending June 30, 2018 are sufficient to support the benefits of the System.

used for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). 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.

Since the previous valuation, various assumptions and methods have been revised to reflect the results of the experience investigation for the five-year period ending June 30, 2014.
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 2015 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

The Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No.67 and 68. The necessary disclosure information is provided in separate supplemental reports.
We have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report:
Summary of Actuarial Assumptions Schedule of Active Members Schedule of Funding Progress Schedule of Retirees Added to and Removed from Rolls Analysis of Change in Unfunded Accrued Liability Solvency Test Results
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

(continued) 83

Actuarial Section

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.

Sincerely yours,

Edward A. Macdonald, ASA, FCA MAAA President

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

Cathy Turcot Principal and Managing Director

84

Actuarial Section

LRS April 21, 2016

3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700 Fax (678) 388-1730 www.CavMacConsulting.com

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, 2015. The report indicates that no annual employer contributions for the fiscal year ending June 30, 2018 are required to support the benefits of the System.
Since the previous valuation, various assumptions and methods have been revised to reflect the results of the experience investigation for the five-year period ending June 30, 2014. In addition, 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, 2015 and on January 1, 2016.
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 2015 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 financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). 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.
The Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports.
We have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report:
Summary of Actuarial Assumptions Schedule of Active Members Schedule of Funding Progress Schedule of Retirees Added to and Removed from Rolls Analysis of Change in Unfunded Accrued Liability Solvency Test Results
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

(continued) 85

Actuarial Section

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.

Sincerely yours,

Edward A. Macdonald, ASA, FCA MAAA President

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

Cathy Turcot Principal and Managing Director

86

Actuarial Section

GMPF April 21, 2016

3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700 Fax (678) 388-1730 www.CavMacConsulting.com

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, 2015. The report indicates that annual employer contributions of $2,377,312 or $172.85 per active member for the fiscal year ending June 30, 2018 are sufficient to support the benefits of the Fund.

for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). 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.

Since the previous valuation, various assumptions and methods have been revised to reflect the results of the experience investigation for the five-year period ending June 30, 2014.
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 2015 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

The Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports.
We have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report:
Summary of Actuarial Assumptions Schedule of Active Members Schedule of Funding Progress Schedule of Retirees Added to and Removed from Rolls Analysis of Change in Unfunded Accrued Liability Solvency Test Results
The Fund is being funded in conformity with the minimum funding standard set forth in Code Section 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

(continued) 87

Actuarial Section

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 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 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.

Sincerely yours,

Edward A. Macdonald, ASA, FCA MAAA President

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

Cathy Turcot Principal and Managing Director

88

Actuarial Section

SEAD Pre-Retirement April 21, 2016

3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700 Fax (678) 388-1730 www.CavMacConsulting.com

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:

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, 2015. 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, 2018 for pre-retirement benefits.
Since the previous valuation, various assumptions and methods have been revised to reflect the results of the experience investigation for the five-year period ending June 30, 2014.
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.
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.

Sincerely yours,

Edward A. Macdonald, ASA, FCA MAAA President

Edward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary
89

Cathy Turcot Principal and Managing Director

Actuarial Section

SEAD Post-Retirement April 21, 2016

3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700 Fax (678) 388-1730 www.CavMacConsulting.com

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:

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, 2015. The report indicates, for post-retirement benefits, there is no employer annual required contribution for the fiscal year ending June 30, 2018.
Since the previous valuation, various assumptions and methods have been revised to reflect the results of the experience investigation for the five-year period ending June 30, 2014.
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.
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.

Sincerely yours,

Edward A. Macdonald, ASA, FCA MAAA President

Edward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary
90

Cathy Turcot Principal and Managing Director

Actuarial Section
Summary of Plan Provisions
ERS Please see Notes to Financial Statements, (2)(a), pages 26-27. PSERS Please see Notes to Financial Statements, (2)(b), page 27-28. LRS Please see Notes to Financial Statements, (2)(c), pages 28-29. GJRS Please see Notes to Financial Statements, (2)(d), pages 29-30. GMPF Please see Notes to Financial Statements, (2)(e), page 30. SEAD-Active Please see Notes to Financial Statements, (2)(f), pages 30-31. SEAD-OPEB Please see Notes to Financial Statements, (2)(g), page 31-32. 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 GASB 67 requirements. For all of the systems covered under GASB 67, the GASB 67 reports prepared as of June 30, 2016 were largely based on the data, assumptions, and results of the annual funding valuations as of June 30, 2015 (detailed in reports dated April 21, 2015). The Total Pension Liability (TPL) for each system, determined using the Entry Age Normal method, was then rolled forward to the June 30, 2016 measurement date. The Net Pension Liability for each system is equal to the rolled forward TPL less the system's net position as of June 30, 2016. For the funding valuations as of June 30, 2015, 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.
91

Actuarial Section

Summary of Actuarial Assumptions
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, 2015 based on actuarial assumptions approved by the Board during the last experience study on December 17, 2015.
The more pertinent facts and significant assumptions underlying the computations included in the June 30, 2015 reports are as follows:

Valuation Date Actuarial Cost Method Amortization Method
Amortization Period

ERS June 30, 2015
Entry age Level dollar, closed
19.4 years

PSERS June 30, 2015
Entry age Level dollar, closed
22.9 years

GJRS
June 30, 2015 Entry age
Level percent of pay, closed
19.0 years

LRS June 30, 2015
Entry age Level dollar, closed
Infinite

GMPF June 30, 2015
Entry age Level dollar, closed
18.2 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% 2.75% 3.25-7.00% None

7.50% 2.75%
n/a 1.50% Semi-annually

7.50% 2.75% 4.50% None

7.50% 2.75%
n/a 3.0% Annually

7.50% 2.75%
n/a None

Valuation Date Actuarial Cost Method
Amortization Method
Amortization Period

SEAD (Active & OPEB)
June 30, 2015 Projected unit credit
Level dollar, closed
Infinite

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

Market Value of Assets
7.50% 2.75%
3.25-7.00% 4.50% 0.00% n/a

(continued) 92

Actuarial Section

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

.0320 % .0177 % .05 %

.02 %

25

.0349

.0192

.05

.02

30

.0412

.0245

.05

.02

35

.0717

.0441

.05

.02

40

.1001

.0655

.25

.10

45

.1399

.1043

.48

.25

50

.1983

.1555

.70

.45

55

.2810

.2228

1.05

.73

60

.4092

.3058

--

--

65

.5600

.4304

--

--

Annual Rates of Withdrawal Years of Service

0-4

5-9

10 & over

Age

Men

Women

Men

Women

Men

Women

20

35.00 % 30.00 %

--%

--%

--%

--%

25

27.50

25.00

15.00

17.50

--

--

30

23.00

21.50

11.50

12.50

7.50

8.25

35

21.50

19.50

10.00

10.50

6.00

6.00

40

19.50

18.25

9.50

9.50

4.75

5.00

45

18.60

16.50

9.00

8.00

4.00

4.00

50

16.60

15.00

7.25

7.25

4.25

4.25

55

14.50

14.00

7.00

7.00

4.75

4.50

60

14.00

14.50

6.00

6.25

--

--

65

15.00

17.00

10.00

11.00

--

--

(continued) 93

Actuarial Section

Summary of Actuarial Assumptions Rates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability)
PSERS

Annual Rates of Death

Annual Rates of Disability

Age

Men

Women

Both

20

.0320 % .0177 %

--%

25

.0349

.0192

--

30

.0412

.0245

--

35

.0717

.0441

.0025

40

.1001

.0655

.0110

45

.1399

.1043

.0370

50

.1983

.1555

.0865

55

.2810

.2228

.2250

60

.4092

.3058

.3500

65

.5600

.4304

--

Annual Rates of Withdrawal Years of Service

0-4

5-9

10 & over

Age

Men

Women

Men

Women

Men

Women

20

37.00 % 32.00 %

--%

--%

--%

--%

25

28.00

28.00

17.00

18.00

--

--

30

25.00

23.00

15.00

15.00

12.00

10.00

35

23.00

19.00

13.00

13.00

9.00

10.00

40

21.00

17.00

12.00

12.00

7.50

8.00

45

19.00

15.50

11.00

10.00

6.50

7.00

50

17.00

14.00

9.00

8.50

6.50

6.00

55

15.00

12.00

9.00

8.00

6.00

5.50

60

12.00

11.00

7.50

7.50

--

--

(continued) 94

Actuarial Section

Summary of Actuarial Assumptions

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

Annual Rates of

Withdrawal

Death

Disability

Age

Both

Men

Women

Both

20

4.0 %

.032 %

.018 %

.03 %

25

4.0

.035

.019

.03

30

4.0

.041

.025

.05

35

4.0

.072

.044

.08

40

6.0

.100

.066

.10

45

4.0

.140

.104

.18

50

3.0

.198

.156

.25

55

2.5

.281

.223

.45

60

2.5

.409

.306

.73

65

2.5

.560

.430

1.18

LRS

Annual Rates of

Withdrawal

Death

Age

Both

Men

Women

20

8.0 %

.032 %

.018 %

25

8.0

.035

.019

30

8.0

.041

.025

35

8.0

.072

.044

40

8.0

.100

.066

45

8.5

.140

.104

50

8.5

.198

.156

55

9.0

.281

.223

60

9.0

.409

.306

65

9.0

.560

.430

GMPF

Rates of Withdrawal from Active Service

Service

Rates

2 or less 3-7 8-9 10-14 15-19 20 or more

13.0 % 17.5 14.0 13.5 8.5 14.5

95

Age

Rates of Death

Men

Women

25

.0349%

.0192%

30

.0412

.0245

35

.0717

.0441

40

.1001

.0655

45

.1339

.1043

50

.1983

.1555

55

.2810

.2228

60

.4092

.3058

(continued)

Actuarial Section

Summary of Actuarial Assumptions
Rates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability) SEAD-Active and SEAD-OPEB

All Groups Annual Rates of Death

Age

Men

Women

ERS

Annual Rates of Disability

Men

Women

GJRS
Annual Rates of Disability
Both

20

.0320 % .0177 %

.05 %

.02 %

.03 %

25

.0349

.0192

.05

.02

.03

30

.0412

.0245

.05

.02

.05

35

.0717

.0441

.05

.02

.08

40

.1001

.0655

.25

.10

.10

45

.1399

.1043

.48

.25

.18

50

.1983

.1555

.70

.45

.25

55

.2810

.2228

1.05

.73

.45

60

.4092

.3058

--

--

.73

65

.5600

.4304

--

--

1.18

ERS

LRS

GJRS

Annual Rates of Withdrawal Years of Service

Annual Rates of Annual Rates of

Withdrawal

Withdrawal

0-4

5-9

10 & over

Age

Men

Women

Men

Women

Men

Women

20

35.00 % 30.00 %

--%

--%

--%

--%

25

27.50

25.00

15.00

17.50

--

--

30

23.00

21.50

11.50

12.50

7.50

8.25

35

21.50

19.50

10.00

10.50

6.00

6.00

40

19.50

18.25

9.50

9.50

4.75

5.00

45

18.60

16.50

9.00

8.00

4.00

4.00

50

16.60

15.00

7.25

7.25

4.25

4.25

55

14.50

14.00

7.00

7.00

4.75

4.50

60

14.00

14.50

6.00

6.25

--

--

65

15.00

17.00

10.00

11.00

--

--

Both
8.00 % 8.00 8.00 8.00 8.00 8.50 8.50 9.00 9.00 9.00

Both
4.00 % 4.00 4.00 4.00 6.00 4.00 3.00 2.50 2.50 2.50

96

Actuarial Section

Summary of Actuarial Assumptions
Annual Rates of Retirement ERS

Old Plan

Early Retirement

Age 60 or 30 years

34 years

More than 34 years

Age

Men

Women

Men

Women

Men

Women

Men

Women

50

2.0 %

2.0 %

7.5 %

6.0 % 100.0 %

100.0 %

90.0 %

100.0 %

52

2.0

2.0

7.5

6.0

100.0

100.0

90.0

100.0

55

3.0

3.5

7.5

10.0

100.0

100.0

75.0

90.0

57

3.5

60

--

--

62

--

65

--

67

--

--

70

--

75

--

5.0

10.5

10.0

100.0

--

15.0

20.0

97.5

--

--

32.0

40.0

97.5

--

35.0

40.0

35.0

--

35.0

35.0

35.0

--

--

35.0

35.0

35.0

--

100.0

100.0

100.0

100.0 95.0 95.0 40.0 35.0 35.0
100.0

70.0 40.0 40.0 35.0 35.0 35.0 100.0

70.0 55.0 65.0 40.0 35.0 35.0 100.0

New Plan and GSEPS

Early Retirement

Normal Retirement

Age

Men

50

7.0 %

52

7.0

55

7.0

57

8.0

60

--

62

--

65

--

67

--

70

--

75

--

Women
4.5 % 4.5 6.5 8.0 -- -- -- -- -- --

Men*
70.0 % 70.0 60.0 50.0 25.0 40.0 32.0 32.0 30.0 100.0

Women**
50.0 % 45.0 50.0 40.0 30.0 40.0 35.0 32.0 30.0 100.0

*An additional 10% of active male New Plan and GSEPS members less than age 55 and 20% between ages 55-59, inclusive, are expected to retire in the year in which they attain 30 years of service.
**An additional 20% of active female New Plan and GSEPS members less than age 60 are expected to retire in the year in which they attain 30 years of service.

(continued) 97

Actuarial Section

Summary of Actuarial Assumptions

Annual Rates of Retirement PSERS

Age

Annual Rate of Retirement

60

13.0 %

61

13.0

62

22.0

63

17.5

64

17.0

65

28.0

66

27.0

67

23.0

Age
68 69 70 71 72 73 74 75 & over

Annual Rate of Retirement
23.0 % 26.0 27.0 27.0 27.0 27.0 27.0 100.0

GJRS LRS

Age
60 61 62 63-64 65-69 70-74 75

Annual Rate of Retirement
15.0 % 10.0 12.0 10.0 15.0 25.0 100.0

Age
60 61 62 63 64 65

Annual Rate of Retirment
10.0 % 10.0 15.0 10.0 10.0 12.0

Age
66 67 68 69 70-74 75

Annual Rate of Retirement
12.0 % 15.0 12.0 12.0 20.0 100.0

GMPF

Age
60 61 62 63 64 65 & over

Annual Rate of Retirement
75.0 % 60.0 70.0 60.0 60.0 100.0

98

(continued)

Actuarial Section

Summary of Actuarial Assumptions

Annual Rates of Retirement SEAD-Active and SEAD-OPEB ERS Members

Old Plan

Early Retirement

Age 60 or 30 years

34 years

More than 34 years

Age

Men

Women

Men

Women

Men

Women

Men

Women

50

2.0 %

2.0 %

7.5 %

6.0 % 100.0 %

100.0 %

90.0 %

100.0 %

52

2.0

2.0

7.5

6.0

100.0

100.0

90.0

100.0

55

3.0

3.5

7.5

10.0

100.0

100.0

75.0

90.0

57

3.5

60

--

--

62

--

65

--

67

--

--

70

--

75

--

5.0

10.5

10.0

100.0

--

15.0

20.0

97.5

--

--

32.0

40.0

97.5

--

35.0

40.0

35.0

--

35.0

35.0

35.0

--

--

35.0

35.0

35.0

--

100.0

100.0

100.0

100.0 95.0 95.0 40.0 35.0 35.0
100.0

70.0 40.0 40.0 35.0 35.0 35.0 100.0

70.0 55.0 65.0 40.0 35.0 35.0 100.0

New Plan and GSEPS

Early Retirement

Normal Retirement

Age

Men

Women

Men*

Women**

50

7.0 %

4.5 %

70.0 %

50.0 %

52

7.0

4.5

70.0

45.0

55

7.0

6.5

60.0

50.0

57

8.0

60

--

--

62

--

65

--

67

--

--

70

--

75

--

8.0

50.0

--

25.0

--

--

40.0

--

32.0

--

32.0

--

--

30.0

--

100.0

40.0 30.0 40.0 35.0 32.0 30.0 100.0

*An additional 10% of active male New Plan and GSEPS members less than age 55 and 20% between ages 55-59, inclusive, are expected to retire in the year in which they attain 30 years of service.
**An additional 20% of active female New Plan and GSEPS members less than age 60 are expected to retire in the year in which they attain 30 years of service.
LRS Members

Age 60 61 62 63-64 65-66

Annual Rate of Retirement
10.0 % 10.0 15.0 10.0 12.0

Age 67 68-69 70-74 75

Annual Rate of Retirement
15.0 % 12.0 20.0 100.0

(continued) 99

Actuarial Section

Summary of Actuarial Assumptions
Annual Rates of Retirement SEAD-Active and SEAD-OPEB GJRS Members

Age
60 61 62 63-64 65-66 67 68-69 70-74 75

Annual Rates of Retirement
15.0 % 10.0 12.0 10.0 15.0 15.0 15.0 25.0 100.0

100

Actuarial Section
Summary of Actuarial Assumptions
Annual Rates of Death After Retirement
For all plans except PSERS, the RP-2000 Combined Mortality Table (projected to 2025 with projection scale BB and set forward two years for both males and females) is used for the period after retirement and for dependent beneficiaries. The RP-2000 Disabled Mortality Table (projected to 2025 with projection scale BB and and set back seven years for males and set forward three years for females) is used for the period after disability retirement. For PSERS, the RP-2000 Blue-Collar Mortality Table (projected to 2025 with projection scale BB and set forward three years for males and two years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table (projected to 2025 with projection scale BB and set forward five years for both males and 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 PSERS GJRS

Age

Men

Women

40

0.1127 %

0.0790 %

45

0.1609

0.1230

50

0.2474

0.1872

55

0.4246

0.2918

60

0.6985

0.4923

Age

Men

Women

65

1.1300 % 0.8994 %

70

1.8697

1.5281

75

3.2147

2.5220

80

5.5160

4.1628

85

9.5631

7.1239

Age

Men

Women

40

0.1476 %

0.0995 %

45

0.1974

0.1484

50

0.3057

0.2084

55

0.5644

0.2844

60

0.9575

0.5014

Age

Men

Women

65

1.4859 % 0.9774 %

70

2.4262

1.7054

75

3.9830

2.7288

80

6.5238

4.4542

85

10.9551

7.5727

Age

Men

Women

40

0.1127 %

0.0790 %

45

0.1609

0.1230

50

0.2474

0.1872

55

0.4246

0.2918

60

0.6985

0.4923

Age

Men

Women

65

1.1300 % 0.8994 %

70

1.8697

1.5281

75

3.2147

2.5220

80

5.5160

4.1628

85

9.5631

7.1239

(continued) 101

Actuarial Section

Summary of Actuarial Assumptions

Annual Rates of Death After Retirement LRS

Age

Men

Women

40

0.1127 %

0.0790 %

45

0.1609

0.1230

50

0.2474

0.1872

55

0.4246

0.2918

60

0.6985

0.4923

Age

Men

Women

65

1.1300 % 0.8994 %

70

1.8697

1.5281

75

3.2147

2.5220

80

5.5160

4.1628

85

9.5631

7.1239

GMPF

Age

Men

Women

40

0.1127 %

0.0790 %

45

0.1609

0.1230

50

0.2474

0.1872

55

0.4246

0.2918

60

0.6985

0.4923

Age

Men

Women

65

1.1300 % 0.8994 %

70

1.8697

1.5281

75

3.2147

2.5220

80

5.5160

4.1628

85

9.5631

7.1239

SEAD-OPEB

Age

Men

Women

40

0.1127 %

0.0790 %

45

0.1609

0.1230

50

0.2474

0.1872

55

0.4246

0.2918

60

0.6985

0.4923

Age

Men

Women

65

1.1300 % 0.8994 %

70

1.8697

1.5281

75

3.2147

2.5220

80

5.5160

4.1628

85

9.5631

7.1239

102

Active Members
ERS

Actuarial Section

Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Active Members 74,089 73,985 75,293 71,272 68,566 66,081 63,942 61,550 60,486 60,416

Annual Payroll (in thousands)

$

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

2,352,920

Average Pay

$

35,500

36,237

37,310

37,520

37,497

37,632

37,767

37,949

38,284

38,945

Change 2.7 % 2.1 3.0 0.6 (0.1) 0.4 0.4 0.5 0.9 1.7

PSERS PSERS is not a compensation based plan.

Year
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Active Members
37,587 39,086 40,121 40,581 39,962 39,249 38,654 37,361 36,096 35,477

GJRS

Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Active Members 478 480 482 502 495 507 503 506 513 516

Annual Payroll (in thousands)

$

45,308

48,621

51,102

52,083

51,293

52,331

51,898

52,807

53,628

54,272

Average Pay $ 94,787
101,294 106,021 103,751 103,622 103,216 103,177 104,362 104,539 105,178

Change 3.4 % 6.9 4.7 (2.1) (0.1) (0.4) (0.0) 1.1 0.2 0.6

103

(continued)

Active Members
LRS LRS is not a compensation based plan.

Actuarial Section

Year
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

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

GMPF GMPF is not a compensation based plan.

Year
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Active Members
10,320 12,017 11,623 12,019 13,032 13,776 13,526 13,573 13,469 13,754

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

Year
2008 2009 2010 2011 2012 2013 2014 2015

Active Members
75,859 69,745 62,305 55,516 49,261 43,512 39,101 35,189

Note: Payroll data on page 103 for fiscal year 2015 will not equal that which is presented in the Financial section in the Schedules of Employers' and Nonemployers' Contributions on pages 55-56. 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.

104

Actuarial Section

Member and Employer Contribution Rates
ERS

Year
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

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

Employer Rates

Old Plan*

New Plan

10.41% 10.41% 10.41% 10.41% 10.41% 11.63% 14.90% 18.46% 21.96% 24.72%

10.41% 10.41% 10.41% 10.41% 10.41% 11.63% 14.90% 18.46% 21.96% 24.72%

GSEPS**
n/a n/a 6.54% 6.54% 6.54% 7.42% 11.54% 15.18% 18.87% 21.69%

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

PSERS

Year
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

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 $ 90 per year

Employer

$

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

28,580,000

GJRS

Year
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Member 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50%
105

Employer
3.85% 3.85% 3.85% 3.85% 3.85% 3.90% 3.90% 4.23% 6.98% 12.19%I)

(continued)

Member and Employer Contribution Rates
LRS
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Actuarial Section

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

Employer

$

62,000

73,000

71,000

75,000

75,000

75,000

128,000

45,000

0

0

GMPF SEAD-Active*

Year
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

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

Employer
$ 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 1,989,530

Year
2008 2009 2010 2011 2012 2013 2014 2015 2016

Member - Old Plan
0.05% 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% 0.02%

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

106

(continued)

Actuarial Section

Member and Employer Contribution Rates
SEAD-OPEB*

Year
2008 2009 2010 2011 2012 2013 2014 2015 2016

Member - Old Plan
0.45% 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% 0.23%

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

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

107

Actuarial Section
Schedules of Funding Progress - Defined Benefit Pension Plans
(Dollar amounts in thousands)
(continued) 108

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

Actuarial valuation
date
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
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

Actuarial value of plan assets
(a)
$ 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 12,675,649
766,277 785,460 791,855 769,618 737,406 719,601 710,915 727,268 765,450 805,277
29,172 30,049 30,706 30,303 29,581 29,278 28,990 29,481 30,538 31,635
279,564 297,090 313,315 317,624 320,050 327,483 335,225 351,889 373,560 396,399

Actuarial accrued liablility (AAL) entry age (b)
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 17,099,527
691,651 746,078 770,950 823,232 875,396 885,927 895,324 910,256 924,365 967,409
23,407 24,357 24,454 23,523 25,003 25,245 24,966 24,904 24,913 25,690
229,837 249,278 268,516 282,474 281,496 290,486 308,862 335,792 343,428 350,298

Unfunded AAL/ (funded excess)
(b-a)
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 4,423,878
(74,626) (39,382) (20,905)
53,614 137,990 166,326 184,409 182,988 158,915 162,132
(5,765) (5,692) (6,252) (6,780) (4,578) (4,033) (4,024) (4,577) (5,624) (5,945)
(49,727) (47,812) (44,799) (35,150) (38,554) (36,997) (26,363) (16,097) (30,132) (46,101)

Funded ratio (a/b)
94.5 % 93.0 89.4 85.7 80.1 76.0 73.1 71.4 72.8 74.1
110.8 105.3 102.7
93.5 84.2 81.2 79.4 79.9 82.8 83.2
124.6 123.4 125.6 128.8 118.3 116.0 116.1 118.4 122.6 123.1
121.6 119.2 116.7 112.4 113.7 112.7 108.5 104.8 108.8 113.2

Annual covered 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 2,315,625 2,352,920
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
3,602 3,688 3,778 3,780 3,745 3,780 3,815 3,867 3,850 3,764
45,308 48,621 51,102 52,083 51,293 52,331 51,898 52,807 53,628 54,272

Unfunded AAL/ (funded excess) as percentage of covered payroll
[(b-a)/c]
29.7 % 38.8 59.2 84.7 126.4 160.4 187.1 207.8 199.3 188.0
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
(160.0) (154.3) (165.5) (179.4) (122.2) (106.7) (105.5) (118.4) (146.1) (157.9)
(109.8) (98.3) (87.7) (67.5) (75.2) (70.7) (50.8) (30.5) (56.2) (84.9)

Actuarial Section
Schedules of Funding Progress - Defined Benefit Pension Plans
(Dollar amounts in thousands)
109

Georgia Military Pension Fund

Actuarial valuation
date
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

Actuarial value of plan assets
(a)

$

3,100

4,165

5,269

6,413

7,558

8,702

10,087

12,131

14,264

16,446

Actuarial accrued liability (AAL) entry-age
(b)
17,625 19,887 19,124 21,021 23,773 26,767 28,231 30,056 31,815 35,213

Unfunded AAL/ (funded excess)
(b-a)
14,525 15,722 13,855 14,608 16,215 18,065 18,144 17,925 17,551 18,767

Funded ratio (a/b)
17.6 % 20.9 27.6 30.5 31.8 32.5 35.7 40.4 44.8 46.7

Annual covered payroll
(c)
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.
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.

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 on page 108 for fiscal year 2015 will not equal that which is presented in the Financial section in the Schedules of Employers' and Nonemployers' Contributions on pages 55-56. 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 Section
Schedule of Retirees Added to and Removed from Rolls
ERS

Added to Rolls

Removed from Rolls

Roll End of Year

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

Number
2,338 2,410 2,422 2,444 2,665 2,797 2,956 3,664 2,440 2,656

Annual Allowances (in thousands) Number

Annual Allowances (in thousands)

Number

$

84,982

854 $

114,719

1,075

82,644

1,017

85,329

1,055

70,383

1,051

69,031

1,170

71,464

1,305

88,855

1,176

51,178

1,059

54,003

1,350

16,270 20,598 21,299 20,194 22,413 25,347 27,696 26,334 22,997 30,927

32,839 34,174 35,579 36,968 38,582 40,209 41,860 44,348 45,729 47,035

Annual Allowances (in thousands)

$

842,157

936,278

997,623

1,062,758

1,110,728

1,154,412

1,198,180

1,260,701

1,288,882

1,311,958

% Increase in Annual Allowance
8.9 % 11.2 6.6 6.5 4.5 3.9 3.8 5.2 2.2 1.8

Average Annual Allowances
$ 25,645 27,397 28,040 28,748 28,789 28,710 28,624 28,427 28,185 27,893

PSERS

Added to Rolls

Removed from Rolls

Roll End of Year

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

Number
870 816 899 886 1,001 1,174 1,133 1,298 1,345 1,247

Annual Allowances (in thousands) Number

$

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

3,482 690

Annual Allowances (in thousands)

Number

$

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

2,679 16,952

Annual Allowances (in thousands)

$

44,266

46,662

48,805

51,835

53,663

53,759

54,117

55,182

56,327

57,130

% Increase in Annual Allowance
7.1 % 5.4 4.6 6.2 3.5 0.2 0.7 2.0 2.1 1.4

Average Annual Allowances
$ 3,401 3,537 3,619 3,757 3,791 3,682 3,596 3,515 3,436 3,370

GJRS

Added to Rolls

Removed from Rolls

Roll End of Year

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

Number
5 13 14 29 16 15 22 42 23 21

Annual Allowances (in thousands) Number

$

144

14

853

7

902

7

2,238

6

933

10

1,168

2

1,732

8

2,763

13

1,175

9

1,416

11

Annual Allowances (in thousands)

Number

$

687 165

297 171

410 178

191 201

508 207

105 220

405 234

629 263

326 277

561 287

Annual Allowances (in thousands)

$

8,917

9,473

9,965

12,012

12,437

13,500

14,827

16,961

17,810

18,665

% Increase in Annual Allowance
(5.7) % 6.2 5.2 20.5 3.5 8.5 9.8 14.4 5.0 4.8

Average Annual Allowances
$ 54,042 55,398 55,983 59,761 60,082 61,364 63,363 64,490 64,296 65,035

(continued) 110

Actuarial Section
Schedule of Retirees Added to and Removed from Rolls
LRS

Added to Rolls

Removed from Rolls

Roll End of Year

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

Number
13 17 13 10 10 18 10 32 6 13

Annual Allowances (in thousands) Number

$

103

21

151

9

130

11

117

7

106

3

104

10

66

11

200

15

30

7

87

12

Annual Allowances (in thousands)

Number

$

165 216

74 224

100 226

54 229

36 236

86 244

82 243

140 260

61 259

112 260

Annual Allowances (in thousands)

$

1,532

1,609

1,639

1,702

1,772

1,790

1,774

1,834

1,803

1,778

% Increase in Annual Allowance
(3.9) % 5.0 1.9 3.8 4.1 1.0 (0.9) 3.4 (1.7) (1.4)

Average Annual Allowances
$ 7,093 7,183 7,252 7,432 7,508 7,336 7,300 7,054 6,961 6,838

GMPF

Added to Rolls

Removed from Rolls

Roll End of Year

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

Number
61 73 71 85 92 94 95 83 62 54

Annual Allowances (in thousands) Number

$

69

1

83

1

76

2

91

3

100

1

101

3

106

3

87

5

68

5

55

6

Annual Allowances (in thousands)

Number

$

1 163

1 235

2 304

4 386

1 477

4 568

3 660

5 738

6 795

5 843

Annual Allowances (in thousands)

$

178

260

334

421

520

617

720

802

864

914

% Increase in Annual Allowance
61.8 % 46.1 28.5 26.0 23.5 18.7 16.7 11.4
7.7 5.8

Average Annual Allowances
$ 1,092 1,106 1,099 1,091 1,090 1,086 1,091 1,087 1,087 1,084

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

111

Actuarial Section
Analysis of Change in Unfunded Accrued Liability (UAL)
(continued) 112

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

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

$

346.2 $
(419.4)
(198.9) 13.9 50.8 10.3 (89.6) 0.0 0.0 80.4 0.0 0.0 14.4 (0.1)
(192.0) $

363.9 $
(321.7)
(228.9) 60.4 45.5 9.3
(159.4) 0.0 0.0 0.0 0.0 0.0 (6.0) 0.1
(236.8) $

338.8 $
(239.1)
253.7 20.6
103.7 14.1 (46.8)
(128.3) 0.0 0.0 0.0 0.0
18.7 (0.1)
335.3 $

Amount of Increase (Decrease) (in Millions)

299.2 $

243.7 $

169.8 $

124.8 $

(147.7)
396.3 15.5 93.8 12.1 (74.2) 0.0
(118.8) 0.0 0.0
26.3 12.9 12.6
528.0 $

(122.9)
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 $

(89.4)
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 $

(99.7)
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 $

78.1 $
(86.3)
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 $

PSERS Interest (7.50) added to previous UAL
Accrued liability contribution

$ 11,918.7 $ 13,724.1 $ 13,830.7 $

(17,704.8)

(15,915.4)

(12,497.7)

Amount of Increase (Decrease) (in Thousands)

12,474.4 $ 10,349.3 $ 4,021.0 $ (1,567.9) $

(4,843.8)

4,022.8

6,403.4

5,026.0

(2,953.7) $ 7,267.0

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 $
(5,596.9) $
4,729.2

28.4
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
(6,204.6)
6,961.2

Experience: Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Method changes Amendments No COLAs Assumption changes Lawsuit Data changes Allotment for expenses Misc. changes
Total

(12,207.0) 414.9
2,618.5 2,875.9
0.0 0.0 (14,772.9) 30,030.0 0.0 0.0 0.0 43.0

(14,071.0) 1,286.7 2,580.8 2,786.0 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 (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 (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 (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
(14,121.2) 33,717.7
0.0 (2,192.3) 2,029.0
195.0

$ 3,216.3 $ (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 2,168.0 24,199.5 433.0 (197.3)

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 (281.8)

74,519.0 $ 18,477.2 $

(3,737.0) (320.5)
1,053.3 3,556.9
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 (3,594.0)
0.0 0.0 0.0 0.0 0.0 0.0 0.0
8,101.9

Actuarial Section
Analysis of Change in Unfunded Accrued Liability (UAL)
(continued) 113

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

GJRS

Interest (7.50) added to

$

previous UAL

Accrued liability contribution

(2,259.9) $ 3,754.1

(1,207.3) $ 5,803.3

(1,977.2) $ 5,187.8

Amount of Increase (Decrease) (in Thousands)

(2,774.8) $ (2,891.5) $ (2,636.2) $ (3,360.0) $ (3,585.9) $

4,710.8

4,079.8

4,592.1

3,596.2

4,498.3

(3,729.5) $ 3,953.2

(3,889.8) 6,928.7

Experience: Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Salary increases Method changes Amendments (COLAs) Assumption changes Data changes Programming modification Misc. changes

(5,855.8) 639.6 (370.0)
1,539.1 (8,848.5)
0.0 0.0 (5,030.9) 0.0 0.0 464.1

(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 1,110.1

Total

$ (15,968.2) $ (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 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
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 (12,852.1)

16,228.0 560.9
2,290.6 0.0
(10,213.5) 0.0 0.0
(14,826.5) 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
4,581.2 0.0
(240.6)

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

10,634.3 $ 1,556.7 $ (3,404.2) $ 9,649.6 $ 3,102.3 $

(1,026.0) (154.4)
(1,614.7) 659.5 369.8 0.0 24.1 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 (4,400.5)
2,136.4

LRS

Interest (7.50) added to

$

previous UAL

Accrued liability contribution

(421.9) $ 173.4

(343.3) $ 161.9

(301.8) $ (62.4)

Amount of Increase (Decrease) (in Thousands)

(302.5) $

(343.4) $

(508.5) $

(468.9) $ (426.9) $

33.9

107.1

(32.5)

(21.1)

(26.3)

(432.3) $ (31.1)

(369.8) (43.1)

Experience: Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Method changes Amendments No COLAs Assumption changes Data changes Misc. changes

Total

$

(491.6) (50.8) (10.1) 35.1 0.0 0.0
(452.6) 852.3
0.0 46.2
(320.0) $

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

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

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

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

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

1,307.4 240.7 (5.7) 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 47.4
(560.2) $

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

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

Actuarial Section
Analysis of Change in Unfunded Accrued Liability (UAL)
114

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

2015

2014

2013

2012

2011

Amount of Increase (Decrease) (in Thousands)

$ 1,316.3 $

1,344.3 $

1,360.8 $

1,354.9 $

1,216.1

(1,765.6)

(1,775.3)

(1,661.5)

(1,502.4)

(1,173.3)

(203.0) 126.1 120.5 236.9
0.0 985.8
0.0 398.7
$ 1,215.7 $

(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 $

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 Section

Solvency Test Results
(Dollar amounts in thousands)
ERS

Actuarial Valuation as of 7/1
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

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

367,462

12,520,321

(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

4,211,744

12,675,649

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% 100.0%

(2)
100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
98.2% 99.0% 98.3%

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

PSERS

Actuarial Valuation as of 7/1
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

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 17,196

(2)
428,543 $ 456,868 469,601 506,659 528,808 532,509 537,284 549,796 566,344 585,471

(3)
248,787 $ 274,414 286,064 300,711 330,227 336,790 341,123 343,444 341,026 364,742

766,277 785,460 791,855 769,618 737,406 719,601 710,915 727,268 765,450 805,277

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% 100.0%

(2)
100.0% 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% 55.5%

GJRS

Actuarial Valuation as of 7/1
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

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 84,170

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

174,147

94,747 109,238 118,077 112,363
96,473 90,440 92,984 99,479 100,894 91,981

Valuation Assets
$ 279,564 297,090 313,315 317,624 320,050 327,483 335,225 351,889 373,560 396,399

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% 100.0%

(2)
100.0% 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% 100.0%

(continued) 115

Actuarial Section

Solvency Test Results
(Dollar amounts in thousands)
LRS

Actuarial Valuation as of 7/1
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

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 3,287

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 19,873

2,166 2,026 2,235 2,150 2,629 2,564 2,581 2,330 2,477 2,530

Valuation Assets

Portion of Aggregate Accrued Liabilities Covered by Assets

(1)

(2)

(3)

$ 29,172 100.0% 100.0% 100.0% 30,049 100.0% 100.0% 100.0% 30,706 100.0% 100.0% 100.0% 30,303 100.0% 100.0% 100.0% 29,581 100.0% 100.0% 100.0% 29,278 100.0% 100.0% 100.0% 28,990 100.0% 100.0% 100.0% 29,481 100.0% 100.0% 100.0% 30,538 100.0% 100.0% 100.0% 31,635 100.0% 100.0% 100.0%

GMPF

Actuarial Valuation as of 7/1
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Actuarial Accrued Liability for:

Active Member Contributions

(1)

$

0

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 24,075

(3)
$ 11,233 12,232 9,675 8,279 9,758 11,388 10,713 10,660 10,426 11,138

Valuation Assets
$ 3,100 4,165 5,269 6,413 7,558 8,702
10,087 12,131 14,264 16,446

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%

n/a

68.3%

0.0%

SEAD-Active 2

Actuarial Valuation as of 7/1
2007 2008 2009 2010 2011 2012 2013 2014 2015

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)

$

0

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 21,723

Valuation Assets
$ 185,335 172,595 144,161 156,132 184,783 183,390 204,779 235,358 240,677

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%

n/a

n/a

100.0%

(continued) 116

Actuarial Section

Solvency Test Results
(Dollar amounts in thousands)
SEAD-OPEB 2

Actuarial Valuation as of 7/1
2007 2008 2009 2010 2011 2012 2013 2014 2015

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)
$ 436,530 486,569 524,718 516,633 503,327 528,165 586,228 621,502 621,426

(3)
$ 206,001 213,315 208,953 174,368 175,093 176,452 168,558 166,518 148,321

Valuation Assets
$ 778,048 737,114 628,199 680,449 807,893 818,284 907,831
1,037,901 1,046,559

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%

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.

117

FinSStaaetcisntitoiccnalial Section

Statistical Section

ERS

GMPF

GJRS

ERSGA

LRS

PSR

GDCP

PSERS

E RSGA

Serving those who serve Georgia

Employees' Retirement System of Georgia

Statistical Section
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
119

120

(continued)

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

2007

$

49,250

270,141

--

1,869,113

90,333

$ 2,278,837

$

1,420

6,490

--

106,833

588

$ 115,331

$

4,040

1,778

--

39,324

175

$

45,317

$

320

62

--

4,072

110

$

4,564

2008

2009

2010

2011

48,324 286,256
-- (482,679)
--

43,978 281,206
-- (1,726,302)
--

42,052 263,064
-- 1,176,741
--

39,480 261,132
-- 2,269,270
--

(148,099) (1,401,118) 1,481,857 2,569,882

1,451 2,869
-- (27,052)
588

1,472 5,096
-- (97,156)
588

(22,144)

(90,000)

1,483 5,530
-- 66,404
--

1,451 7,509
-- 128,096
--

73,417 137,056

4,698 2,395
-- (10,702)
175

4,612 1,703
-- (38,164)
175

(3,434)

(31,674)

5,018 3,369
-- 27,378
175
35,940

4,721 1,163
-- 57,330
--
63,214

320 73 --
(1,051) 110
(548)

320 71 --
(3,772) 110
(3,271)

318 75 --
2,610 110
3,113

320 75 --
5,194 --
5,589

2012

2013

2014

2015

36,561 274,034
-- 231,782
--

38,955 358,992
-- 1,495,849
--

32,423 418,807
10,945 2,021,748
--

33,713 505,668
12,495 474,147
10

542,377 1,893,796 2,483,923 1,026,033

1,426 15,884
-- 13,554
--

1,538 24,829
-- 88,067
--

1,659 --
27,160 123,799
--

1,800 --
28,461 30,129
--

30,864 114,434 152,618

60,390

4,904 2,083
-- 6,571
--

4,408 2,279
-- 42,104
--

4,731 1,373 1,002 60,012
--

5,061 2,696 1,564 14,697
--

13,558

48,791

67,118

24,018

323 76 -- 550 --
949

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

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

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

2016
31,961 583,082
12,484 141,292
10
768,829
1,925 --
28,580 9,809 --
40,314
5,507 4,754 2,869 5,055
--
18,185
328 -- -- 363 --
691

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

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

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

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

$

--

--

--

--

--

--

--

--

--

--

1,005

1,103

1,323

1,434

1,282

1,521

1,703

1,892

1,893

1,990

--

--

--

--

--

--

--

--

--

--

503

(191)

(657)

565

1,465

221

1,374

2,179

585

240

--

--

--

--

--

--

--

--

--

--

$

1,508

912

666

1,999

2,747

1,742

3,077

4,071

2,478

2,230

121

SEAD - Active*

Employee Contributions Employer Contributions

$

Insurance Premiums

Net Investment Income (Loss)

Other

Total Additions to (Deductions from) Fidu-

ciary Net Position

$

SEAD - OPEB*

Employee Contributions Employer Contributions

$

Insurance Premiums

Net Investment Income (Loss)

Other

Total Additions to (Deductions from) Fidu-

ciary Net Position

$

--

--

--

--

--

--

--

--

--

--

--

864

880

900

847

--

(6,321) (22,656)

15,910

33,023

--

--

--

--

--

--

(5,457) (21,776)

16,810

33,870

-- -- 771 3,876 --

-- -- 699 24,274 --

-- -- 607 35,073 --

4,647

24,973 35,680

-- -- 581 8,714 --
9,295

-- -- 611 3,109 --
3,720

--

--

--

--

--

--

--

7,756

7,551

-- (27,032) (96,424)

--

--

--

-- -- 6,755 69,340 --

-- -- 6,437 144,270 --

-- -- 5,532 17,193 --

-- -- 5,075 108,148 --

-- -- 4,502 154,868 --

-- -- 4,187 37,876 --

-- -- 3,931 12,559 --

-- (19,276) (88,873)

76,095 150,707 22,725

113,223 159,370

42,063

16,490

*Plans began in fiscal year 2008.

(continued)

Statistical Section
Additions by Source - Contribution/Investment Income (in thousands)
122

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

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

$

15,060 15,860

15,608

16,002

--

--

--

--

--

--

--

--

7,938

(331) (5,294) 10,319

--

--

--

--

$

22,998 15,529

10,314

26,321

17,656 -- --
775 --

17,171 -- --
652 --

16,676 -- --
137 --

16,290 -- --
1,368 --

15,655 -- --
1,326 --

14,708 -- --
5,591 --

18,431

17,823

16,813

17,658

16,981

20,299

$

34,956 38,927

33,432

14,774 14,193

6,939

33,899 15,664

38,006 25,442

40,331 4,355

44,428 18,279

53,724 21,513

64,870 25,615

79,422 29,982

--

--

--

--

--

--

--

--

--

--

39,927 (21,302) (50,330)

25,283

59,581

3,112

52,835

78,583

17,665

5,281

674

921

750

385

446

800

948

1,122

--

1,429

$

90,331 32,739

(9,209)

75,231 123,475

48,598 116,490 154,942 109,448 116,114

$

28,116

26,466

24,087

21,171

20,108

19,551

18,753

17,623

17,445

17,413

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

72,425 (31,343) (70,066)

35,806

70,963

7,785

55,737

73,746

18,991

7,855

537

761

626

468

339

--

--

--

--

--

$ 101,078

(4,116) (45,353)

57,445

91,410

27,336

74,490

91,369

36,436

25,268

Statistical Section

Deductions by Type (in thousands)

ERS
Fiscal Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Benefit Payments

Service

Partial Lump-Sum
Option

$

721,869

797,052

889,669

878,482

921,136

964,485

1,007,816

1,051,993

1,076,676

1,092,909

17,821 24,792 22,011 23,480 30,946 31,963 35,933 24,567 24,391 19,154

Disability
127,091 131,709 135,743 146,031 140,849 143,317 145,152 146,245 147,418 147,706

Survivor Benefits
61,873 66,397 69,735 82,676 75,891 76,973 80,300 83,193 85,794 87,843

Total Benefit Payments

$

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

1,347,633

Net Administrative
Expenses
14,901 18,805 16,809 14,505 14,431 12,051 12,889
7,440 7,872 8,506

Refunds

Total Deductions
from Fiduciary Net Position

6,696 $ 7,815 6,597 6,483 7,515 7,767 7,390 8,757 7,450 7,087

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 1,363,226

PSERS

Benefit Payments

Fiscal Year
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Service

$

40,070

41,607

45,159

45,741

46,548

46,911

47,805

48,911

49,704

50,572

Disability
4,814 4,956 5,232 5,402 5,369 5,369 5,328 5,280 5,227 5,172

Survivor Benefits
1,580 1,682 1,806 2,052 2,063 1,903 1,908 1,998 2,041 2,160

Total Benefit Payments

$

46,464

48,245

52,197

53,195

53,980

54,183

55,041

56,189

56,972

57,903

Net Administrative
Expenses
588 588 588 1,956 2,046 2,040 2,021 1,450 1,545 1,321

Refunds
319 308 261 251 267 349 492 514 456 465

Total Deductions from
Fiduciary Net Position

$

47,371

49,141

53,046

55,402

56,293

56,572

57,554

58,153

58,973

59,689

GJRS

Benefit Payments

Fiscal Year
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Service

$

7,908

8,259

9,453

10,633

11,245

12,608

14,273

15,305

16,084

16,677

Disability
106 110 112 114 112 113 112 112 112 112

Survivor Benefits
1,285 1,498 1,546 1,618 1,654 1,695 1,865 2,024 2,169 2,222

Total Benefit Payments

$

9,299

9,867

11,111

12,365

13,011

14,416

16,250

17,441

18,365

19,011

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

Refunds
76 14 263 139 260 146 105 22 772 261

Total Deductions from
Fiduciary Net Position

$

9,550

10,056

11,549

12,774

13,561

14,872

16,668

18,217

19,956

20,026

123

(continued)

Statistical Section

Deductions by Type (in thousands)

LRS Benefit Payments

Fiscal Year
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Service

$

1,187

1,228

1,265

1,308

1,309

1,364

1,376

1,336

1,315

1,294

Survivor Benefits
401 406 425 436 452 446 448 465 441 429

Total Benefit Payments

$

1,588

1,634

1,690

1,744

1,761

1,810

1,824

1,801

1,756

1,724

Net Administrative
Expenses
110 110 110 120 131 110 119 152 169 313

Refunds

Total Deductions from
Fiduciary Net Position

33 $ 65 49 47 60 74 88 30 26 38

1,731 1,809 1,849 1,911 1,952 1,994 2,031 1,983 1,951 2,075

GMPF

Fiscal Year
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Benefit Payments

Service*

Total Benefit Payments

$

225 $

225

303

303

382

382

489

489

579

579

678

678

772

772

841

841

896

896

963

963

Net Administrative
Expenses

Total Deductions from
Fiduciary Net Position

-- $ -- -- 43 37 34 31 110 121 262

225 303 382 532 616 712 803 951 1,017 1,225

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

(continued) 124

Statistical Section

Deductions by Type (in thousands)

SEAD-Active

Fiscal Year
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Benefit Payments

Death Benefits**

$

--

7,261

6,636

4,817

5,197

6,018

3,562

5,055

3,929

3,345

Total Benefit Payments

$

--

7,261

6,636

4,817

5,197

6,018

3,562

5,055

3,929

3,345

Net Administrative
Expenses

Total Deductions from
Fiduciary Net Position

-- $ 22 22 22 22 22 22 46 47 67

-- 7,283 6,658 4,839 5,219 6,040 3,584 5,101 3,976 3,412

SEAD-OPEB

Fiscal Year
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Benefit Payments

Death Benefits**

Total Benefit Payments

$

-- $

--

21,455

21,455

19,839

19,839

23,642

23,642

23,060

23,060

24,855

24,855

28,482

28,482

28,891

28,891

32,979

32,979

33,911

33,911

Net Administrative
Expenses

Total Deductions from
Fiduciary Net Position

--$ 203 203 203 203 203 203 414 428 599

-- 21,658 20,042 23,845 23,263 25,058 28,685 29,305 33,407 34,510

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

(continued) 125

Statistical Section

Deductions by Type (in thousands)

Defined Contribution Plan - GDCP

Fiscal Year
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Benefit Payments

Periodic Payments

Total Benefit Payments

Net Administrative
Expenses

$

-- $

--

9

9

9

9

9

9

9

9

11

11

9

9

9

9

--

--

--

35

310 310 310 1,110 1,180 1,138 1,160 991 990 766

Refunds

Total Deductions from
Fiduciary Net Position

12,464 $ 11,514 10,377 10,613 11,390 12,749 14,415 17,721 22,340 11,911

12,774 11,833 10,696 11,732 12,579 13,898 15,584 18,721 23,330 12,712

Defined Contribution Plan - 401(k)

Fiscal Year
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Benefit Payments

Distributions

$

25,785

26,548

21,105

23,618

42,457

36,986

57,351

43,133

95,428

46,508

Total Benefit Payments

$

25,785

26,548

21,105

23,618

42,457

36,986

57,351

43,133

95,428

46,508

Net Administrative
Expenses

Total Deductions from
Fiduciary Net Position

1,050 $ 1,472 1,028
829 2,054 2,111 2,457 2,300 2,755 2,832

26,835 28,020 22,133 24,447 44,511 39,097 59,808 45,433 98,183 49,340

Defined Contribution Plan - 457

Fiscal Year
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Benefit Payments

Distributions

$

53,097

41,555

37,257

37,014

44,773

41,835

63,388

45,807

50,479

43,288

Total Benefit Payments

$

53,097

41,555

37,257

37,014

44,773

41,835

63,388

45,807

50,479

43,288

Net Administrative
Expenses

Total Deductions from
Fiduciary Net Position

921 $ 1,169 1,769 2,115 1,064
910 996 812 866 820

54,018 42,724 39,026 39,129 45,837 42,745 64,384 46,619 51,345 44,108

126

Statistical Section
Changes in Fiduciary Net Position (in thousands)
(continued) 127

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

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

$ 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

768,829

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 1,363,226

--

--

--

--

--

(12,724)

(5,009)

--

--

--

1,328,586 (1,194,669) (2,541,682) 330,200 1,379,114 (706,903) 599,307 1,161,728 (323,567) (594,397)

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

40,314 59,689
-- (19,375)

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

18,185 20,026
-- (1,841)

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)

691 2,075
-- (1,384)

1,508

912

225

303

--

--

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

2,230 1,225
-- 1,005

Statistical Section
Changes in Fiduciary Net Position (in thousands)
128

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
Survivors Benefit Fund**
Total Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

$

--

(5,457) (21,776)

16,810

33,870

4,647

24,973

35,680

9,295

3,720

--

7,283

6,658

4,839

5,219

6,040

3,584

5,101

3,976

3,412

--

--

--

--

--

--

--

--

--

--

-- (12,740) (28,434)

11,971

28,651

(1,393)

21,389

30,579

5,319

308

-- (19,276) (88,873)

--

21,658

20,042

--

--

--

-- (40,934) (108,915)

76,095 23,845
-- 52,250

150,707 23,263 --
127,444

22,725 25,058 12,724 10,391

113,223 28,685
5,009 89,547

159,370 29,305 5
130,070

42,063 33,407
2 8,658

16,490 34,510
2 (18,018)

--

--

--

--

--

--

--

17,044

4,307

1,611

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

(5)

(2)

(2)

--

--

--

--

--

--

--

17,039

4,305

1,609

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

$

22,998

12,774

--

10,224

15,529 11,833
-- 3,696

10,314 10,696
-- (382)

90,331 26,835
-- 63,496

32,739 28,020
-- 4,719

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

101,078 54,018 -- 47,060

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

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

* Plan began in fiscal year 2008. **Plan reported separately from ERS pension trust beginning in fiscal year 2014.

26,321 11,732
-- 14,589

18,431 12,579
-- 5,852

17,823 13,898
-- 3,925

16,813 15,584
-- 1,229

17,658 18,721
-- (1,063)

16,981 23,330
-- (6,349)

20,299 12,712
-- 7,587

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

116,114 49,340
-- 66,774

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)

25,268 44,108
-- (18,840)

Number of Retirees

Statistical Section

129

Average Monthly Payments to Retirees

Statistical Section

130

Annual Benefit

Statistical Section

131

Withdrawal Statistics

Statistical Section

Note: The GMPF Plan does not have a refund feature. 132

Statistical Section

Average Monthly Benefit Payment for New Retirees - ERS

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
2016
Average Monthly Benefit Average Final Average Salary Number of Retirees

10-15

Years of Credited Service

16-20

21-25

26-30

Over 30

Total

$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

$769.91 $3,309.44
483

$1,232.07 $3,337.66
306

$1,527.47 $3,263.54
311

$2,057.32 $3,718.37
477

$3,242.25 $4,486.34
542

$1,870.02 $3,699.86
2,119

$750.98 $3,269.25
524

$1,224.00 $3,443.88
316

$1,620.88 $3,547.63
341

$2,068.82 $3,750.99
623

$3,074.69 $4,536.68
561

$1,837.97 $3,760.27
2,365

$759.54 $3,189.20
559

$1,224.52 $3,376.84
340

$1,760.28 $3,657.08
330

$2,171.75 $3,935.01
530

$2,996.81 $4,618.83
466

$1,783.98 $3,764.34
2,225

133

(continued)

Statistical Section

Average Monthly Benefit Payment for New Retirees - PSERS

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
2016
Average Monthly Benefit Number of Retirees

10-15

Years of Credited Service

16-20

21-25

26-30

Over 30

Total

$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

$154.20 603

$227.41 268

$297.58 147

$345.98 121

$437.20 131

$233.71 1,270

$155.20 568

$225.02 254

$290.82 166

$360.11 105

$471.12 99

$233.25 1,192

$160.28 529

$232.09 273

$298.45 454

$358.11 103

$489.48 103

$242.18 1,162

Note: PSERS is not a final average pay plan.

(continued) 134

Statistical Section

Average Monthly Benefit Payment for New Retirees - GJRS

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
2016
Average Monthly Benefit Average Final Average Salary Number of Retirees

10-15

Years of Credited Service

16-20

21-25

26-30

Over 30

Total

$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

0

$6,534.36

$8,121.58

0

$9,655.37 $11,204.04

0

6

2

0

$8,635.31

$7,120.51

0 $11,566.18 $10,211.83

0

1

9

(continued) 135

Statistical Section

Average Monthly Benefit Payment for New Retirees - LRS

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
2016
Average Monthly Benefit Number of Retirees

8 - 14

Years of Credited Service

15 - 19

20 - 24

25 - 29 30 & over

Total

$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

$322.51 $524.09

0

0

0 $380.11

5

2

0

0

0

7

Note: LRS is not a final average pay plan.

(continued) 136

Statistical Section

Average Monthly Benefit Payment for New Retirees - GMPF

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
2016
Average Monthly Benefit Number of Retirees

Years of Credited Service

20-25

26 - 30

Over 30

Total

$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

$66.30 27

$89.29 14

$100.00 30

$85.07 71

Note: GMPF is not a final average pay plan.

137

Retired Members by Retirement Type
ERS June 30, 2016

Statistical Section

PSERS June 30, 2016

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

3,563

254

322

7,609

1,005

324

6,138

1,147

231

4,796

933

158

3,784

773

107

3,143

589

72

2,560

422

51

2,150

318

44

1,729

229

23

1,540

182

12

3,935

279

27

40,947

6,131

1,371

Amount of Monthly Benefit
$ 1 - 100 101 - 200 201 - 300 301 - 400 401 - 500 over 500
Totals

Retirement Type Service Disability Survivor

93

6

220

5,915

37

146

4,590

314

43

2,642

419

6

1,567

294

2

1,157

175

--

15,964

1,245

417

(continued) 138

Retired Members by Retirement Type
GJRS June 30, 2016

Statistical Section

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

26

--

1

34

--

1

21

2

1

17

--

--

29

--

--

90

--

--

34

--

--

284

2

9

LRS June 30, 2016

Amount of Monthly Benefit
$ 1 - 250 251 - 500 501 - 750 751 - 1,000 over 1,000
Totals

Retirement Type

Service Disability Survivor

21

--

--

109

--

4

66

--

--

33

--

--

23

--

1

252

0

5

GMPF June 30, 2016

Amount of Monthly Benefit

$

1 - 49

50 - 100

over 100

Totals

Retirement Type Service -- 915 --
915

139

Statistical Section
Retired Members by Optional Form of Benefit
ERS June 30, 2016

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
1,297 4,010 3,235 2,480 1,934 1,543 1,078 838 604 496 952

Option 1
383 1,132 1,029 938 674 534 386 272 199 122 278

Form of Benefit Option 2 Option 3

1,211

413

1,783

620

1,276

623

841

547

573

458

442

334

302

317

253

219

167

187

133

183

318

453

Option 4
643 860 774 563 543 605 645 686 661 671 2,017

Option 5A
133 338 363 252 248 142 138 105 49 47 89

Option 5B
59 195 216 266 234 204 167 139 114 82 162

18,467

5,947

7,271

4,354

8,668

1,904

1,838

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

140

(continued)

Statistical Section
Retired Members by Optional Form of Benefit
PSERS June 30, 2016

Amount of Monthly Benefit
$ 1 - 100 101 - 200 201 - 300 301 - 400 401 - 500 over 500
Totals

Maximum Plan
-- 4,410 4,100 2,681 1,702 1,251

Form of Benefit Option AA Option AB Option AC Option AD

55

236

6

8

954

329

9

83

475

171

5

30

237

57

10

13

95

36

3

2

42

16

5

--

Option B
14 313 166 69 25 18

14,144

1,858

845

38

136

605

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

141

(continued)

Statistical Section
Retired Members by Optional Form of Benefit
GJRS June 30, 2016

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

Form of Benefit Maximum Plan Spousal Coverage

--

13

2

24

2

25

2

33

6

18

6

11

6

23

16

74

5

29

Totals

45

250

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

LRS June 30, 2016

Amount of Monthly Benefit

$ 1 - 250 251 - 500 501 - 750 751 - 1,000 over 1,000
Totals

Maximum Plan Option B1 Option B2

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

Form of Benefit

Maximum Plan Option B1

--

17

41

64

35

19

8

20

8

13

Option B2
4 8 12 5 3

92

133

32

GMPF and SEAD-Active and SEAD-OPEB June 30, 2016
The GMPF Plan provides a benefit only in one form, a life annuity. All 915 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).

142

Top Participatory Employers FY10

Statistical Section

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.
Data for SEAD-Active and SEAD-OPEB is not 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

143

Top Participatory Employers FY16

Statistical Section

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 Houston County Schools Muscogee County Schools Cherokee County Schools Coweta 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 Human Services Department of Behavioral Health and Developmental Disabilities Department of Juvenile Justice Department of Natural Resources Department of Public Safety Department of Labor Department of Revenue Department of Community Health
Total Top Employers Total Active Member Count

Member Count % of total plan

11,133 4,118 3,967 3,528 3,327 1,723 1,638 1,346 970 949
32,699 59,766
3,531 2,280 2,219 1,346
864 801 758 753 688 618
13,858 34,874
212 126 110
75
523 526
5,473 2,799 1,909 1,713 1,479 1,138 1,022
913 517 490
17,453 31,869

18.63% 6.89% 6.64% 5.90% 5.57% 2.88% 2.74% 2.25% 1.62% 1.59%
54.71%
10.13% 6.54% 6.36% 3.86% 2.48% 2.30% 2.17% 2.16% 1.97% 1.77%
39.74%
40.30% 23.95% 20.91% 14.26%
99.43%
17.17% 8.78% 5.99% 5.38% 4.64% 3.57% 3.21% 2.86% 1.62% 1.54%
54.76%

144

145

System ERS
PSERS GJRS LRS GDCP SCJRF DARF SEAD GMPF

Net Position $ 12.4 billion
$ 804 million $403 million $ 31 million $ 109.7 million

Employer and Nonemployer Contributions Old Plan: 19.97% New Plan: 24.72% GSEPS 21.69%
($595 mil)
$28.6 million
6.98% ($7.6 million)
0% (None)
None

Employee Contributions
Old Plan: 6% (with 4.75% pickup) New Plan: 1.25%
GSEPS: 1.25% ($32 mil)
$36 yr prior July 1, 2012 $90 yr after July 1, 2012 ($1.9 million)
7.5% +2.5% Spousal ($5.5 million)
8.5% (with 4.75% pickup)
($328 thousand)

Active Members Old Plan: (0.20%) 100 New Plan: (52.8%) 31,571 GSEPS: (47%) 28,095 Total: 59,766
34,874
526
224

7.5% ($14.7 million)

13,533

$ 8 thousand

$1.2 million

None

None

Inactives
57,995
50,672 61 154
85,310 None

$ 2 thousand

$51 thousand

None

None

None

$1.4 billion

None

New Plan: 0.25% Old Plan: 0.50%
($4.5 million)

No. Insured: 31,869

918

$ 17.7 million

$2 million

None

13,882

None

Retirees Total: 48,449
Service: 36,843 Beneficiary: 5,573 Disability: 5,380
Inv. Sep.: 506 Law. Enf.: 147
17,626

Annual Payment

Average Monthly Benefit

$1.3 billion

$2,299

$58 million

$276

295

$19 million

$5,456

257

$1.7 million

$563

1

$9 thousand

Paid Annually

16

$1.2 million

$5,750

5

$51 thousand

$855

No. Insured: 40,793

No. of Claims: 1,117 Amt. Pd: $37.2 mil

Average Claim: $33,353

915

$963 thousand

$91

Statistical Data at June 30, 2016

Statistical Section