Employees' Retirement System of Georgia
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2022
A component unit of the State of Georgia
Georgia's Waterfalls
Tallulah Gorge State Park
2
2022
Tallulah Gorge
Tallulah Gorge State Park: Various trails with different levels of difficulty Tallulah Gorge is in Rabun County in Northeast Georgia, at the Georgia and North Carolina border. Five spectacular waterfalls cascade through Tallulah Gorge: L'Eau d'Or, Tempesta, Hurricane, Oceana, and Bridal Veil (Sliding Rock). All waterfalls can be viewed from the overlooks along the rim of the gorge, with the exception of Bridal Veil. Two miles long and nearly 1,000 feet deep, Tallulah Gorge is one of the most dramatic canyons in the eastern United States. There are more than 20 miles of trails ranging from easy to heart-pumping. The trails lead to rim overlooks, waterfalls, Tallulah Lake, and a suspension bridge swaying 80 feet above the views of the river and waterfall below.
Learn more at exploregeorgia.org
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
Employees' Retirement System of Georgia
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2022
A component unit of the State of Georgia
Serving Those Who Serve Georgia
Cascade Falls
James A. Potvin Executive Director
Cascade Falls
Pine Mountain Trail to Cascade Falls: Moderate, 4.5 miles Cascade Falls is located in Harris County, just northeast of Columbus. The Pine Mountain trail wanders through a rocky forest in the Franklin D. Roosevelt State Park. The trail features a tunnel of mountain laurel and joins a creek after 1.25 miles. The trail then passes several small waterfalls and ends at Cascade Falls. The best time to hike the Pine Mountain trail is from April through October. Four-legged companions are welcome on the trail, but must be leashed at all times.
Learn more at atlantatrails.com
Table of Contents
Introductory Section
Boards of Trustees
4
Letter of Transmittal
5
Certificate of Achievement for Excellence in
9
Financial Reporting
PPCC Recognition Award for Funding
10
Administrative Staff and Organization
11
Organizational Chart
12
Financial Section
Independent Auditors' Report
15
Management's Discussion and Analysis (Unaudited)
18
Basic Financial Statements:
Combining Statement of Fiduciary Net Position as of
26
June 30, 2022
Defined Benefit Plans-Combining Statement of
27
Fiduciary Net Position as of June 30, 2022
Combining Statement of Changes in Fiduciary Net
28
Position for the Year Ended June 30, 2022
Defined Benefit Plans-Combining Statement of Changes 29 in Fiduciary Net Position for the Year Ended June 30, 2022
Statement of Net Position-State Employees' Assurance 30 Department Active Members Fund
Statement of Revenues, Expenses, and Changes in Net 31 Position-State Employees' Assurance Department Active Members Fund
Statement of Cash Flows-State Employees' Assurance 32 Department Active Members Fund
Notes to Financial Statements
33
Required Supplementary Information (Unaudited):
Defined Benefit Plans:
Schedule of Employers' and Nonemployer
67
Contributions
Schedules of Employers' and Nonemployer Net
69
Pension/OPEB Liability (Asset) and Related
Ratios
Schedules of Changes in Employers' and
71
Nonemployer Net Pension/OPEB Liability (Asset)
Schedule of Investment Returns
77
Schedules of the System's Proportionate Share
78
of the Net OPEB Liability (Asset)
Schedules of the System's Contributions to OPEB Plans 79
Notes to Required Supplementary Information (Unaudited) 80
Additional Information:
Schedule of Administrative Expenses -
86
Contributions and Expenses
Schedule of Investment Expenses
87
Investment Section
Investment Overview
90
Pooled Investment Fund/Rates of Return
91
Asset Allocation at Fair Value/Investment Summary
92
Schedule of Fees and Commissions
93
Twenty Largest Equity Holdings
94
Top 10 Fixed Income Holdings
95
Actuarial Section
Actuary's Certification Letters
98
Summary of Plan Provisions
110
Summary of Actuarial Assumptions
112
Active Members
124
Member and Employer Contribution Rates
126
Defined Benefit Plans-Schedules of Funding Progress
128
Schedule of Retirees Added to and Removed from Rolls
130
Analysis of Change in Unfunded Accrued Liability (UAL)
132
Solvency Test Results
135
Statistical Section
Introduction
139
Additions by Source-Contribution/Investment Income
140
Deductions by Type
143
Changes in Fiduciary Net Position
147
Number of Retirees
149
Average Monthly Payments to Retirees
150
Annual Benefit
151
Withdrawal Statistics
152
Average Monthly Benefit Payment for New Retirees
153
Retired Members by Retirement Type
158
Retired Members by Optional Form of Benefit
160
Principal Participating Employers
164
Schedule of Revenue and Expenses-State
166
Employees' Assurance Department Active
Members Fund
Schedule of Membership-State Employees'
167
Assurance Department Active Members Fund
Statistical Data at June 30, 2022
168
Introductory Section
Georgia's Waterfalls
DeSoto Falls
DeSoto Falls
DeSoto Falls Trail: Moderate, 2 miles DeSoto Falls is a 30-minute drive north from the charming town of Dahlonega. The 2-mile out-and-back DeSoto Falls Trail packs a lot of punch in a short distance, crossing a beautiful rhododendron and mossy boulder-filled creek. There are two waterfalls to choose from, each trail through a shady forest. This hike's relatively short, kid-friendly distance and moderate elevation change make it one of North Georgia's most popular waterfall hikes.
Learn more at atlantatrails.com
Introductory Section
Boards of Trustees
as of September 30, 2022 Employees' Retirement System, Legislative Retirement System,
Georgia Defined Contribution Plan, and Georgia Military Pension Fund
Eli P. Niepoky Chair
Homer Bryson Vice-Chair
Rebecca Sullivan
Steve McCoy
Greg S. Griffin
Public School Employee Retirement System*
Frank F. Thach, Jr.
Rhonda Wilson
State Employees' Assurance Department**
Michael Lowe
Richard Taylor
Mark Butler
Georgia Judicial Retirement System*
Vacant
Ellen S. Golden
Ron Mullins
Ann Harris
*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 Eli P. Niepoky, Greg S. Griffin, Steve McCoy, Rebecca Sullivan, and Rhonda Wilson serve in addition to the members shown above.
4
Introductory Section
Letter of Transmittal
Two Northside 75 Atlanta, GA 30318
September 30, 2022
I am pleased to present the Annual Comprehensive Financial Report (ACFR) of the retirement systems and programs administered by the Employees' Retirement System of Georgia (the System) for the fiscal year ended June 30, 2022. 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
state. There were 74,098 participants in the 401(k) plan with a total investment balance of $1.5 billion. The 457 plan had 11,718 participants with a total investment balance of $661.2 million. There are 461 participating employers from around the state in the 457 and 401(k) plans.
Legislation
The Georgia General Assembly, which adjourned April 4, 2022, passed several bills directly affecting the Employees' Retirement System (ERS) and other defined benefit and defined contribution programs which it administers.
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 33 through 43 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 governor-appointed members.
As of June 30, 2022, the System's defined benefit (DB) plans served a total of 98,934 active members and 76,608 retirees/beneficiaries from 678 employers around the
Act 790 (SB 343) makes two major changes to the ERS. The first amends forfeited leave provisions so that for retirements prior to July 1, 2022, the last reporting employer before the member's retirement will continue to be responsible for contributing the financial cost associated with such leave. Non-legislative changes made and adopted to the ERS Funding Policy by the Board of Trustees will provide that for all retirements after July 1, 2022, such cost and liabilities will be factored into the actuarial assumptions for ERS and paid as part of the Actuarially Determined Employer Contribution (ADEC).
In addition, SB 343 updates the current 401(k) employer matching structure for all ERS members who first or again became members on or after July 1, 2009. Currently, such members receive a monthly three percent (3%) employer contribution match for contributing five percent (5%), whereas the legislation increases the employer match to a one-for-one basis up to a maximum of five percent (5%) of the employee's pay. This bill also increases the employer match one-half of one percent (0.5%) for each year of Creditable Service after five (5) obtained by eligible members up to a maximum of nine percent (9%) employer contribution for those members with more than 13 years of Creditable Service and who contribute at least five percent (5%) to their 401(k). This is a nonfiscal retirement bill having no financial impact on the system, and became effective July 1, 2022.
(continued) 5
Introductory Section
The Legislative Retirement System (LRS) also saw major legislative changes with the passing and signing of Act 747 (HB 824). This legislation increases the benefit multiplier from $36 to $50, but only for those LRS members who were contributing on or who first or again become LRS members after January 1, 2022. It also amends the employee contribution structure on and after July 1, 2022 so that instead of paying eight and one-half of a percent (8.5%) of their monthly salary, members will instead pay $165 each month. In addition to the general benefit increase and contribution changes, this legislation provides for additional benefits and increased contributions for service as the Speaker of the Georgia House of Representatives. Individuals with "presiding creditable service" over the House of Representatives will be required to contribute an additional $660 on top of the $165 for each month of applicable service, and will in turn receive an increased benefit of $250 ($200 plus regular $50) for each year of presiding creditable service.
The Fiscal Year 2023 Budget (Act 865, HB 911) included funds to increase the benefit multiplier for Public School Employees Retirement System (PSERS) retirees and beneficiaries from $15.75 to $16.00. Such increase became effective July 1, 2022.
Summary of Financial Information
The management of the System is charged with the responsibility of maintaining a sound system of internal accounting controls. The objectives of such a system are to provide management with reasonable assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorizations, and that they are recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. The concept of reasonable assurance recognizes that first, the cost of a control should not exceed the benefits likely to be derived, and second, the evaluation of the cost and benefits requires estimates and judgments by management.
Even though there are inherent limitations in any system of internal control, the management of the System makes every effort to ensure that through systematic reporting and internal reviews, error or fraud would be quickly detected and corrected.
For fiscal year 2022, the pooled investment fund generated a time-weighted rate of return of (11.71)%. The fund continues to invest in a mix of high-quality bonds and stocks which allows the System to participate in rising markets while controlling the downside risks. This has proven to be a successful strategy for other markets and for the System. For further information on investments of the pooled fund, please refer to the Investment Section on pages 88 through 95 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 128 and 129. The latest actuarial valuations as of June 30, 2021 showed the funded ratio of four of the five of the defined benefit plans increasing. The following table shows the change in funding percentage for each of the pension systems:
ERS PSERS LRS GJRS GMPF
FY2020 73.8 % 83.1 %
135.7 % 106.4 %
57.8 %
FY2021 71.6 % 86.3 %
143.5 % 109.0 %
62.9 %
Further information regarding the funding condition of the pension plans can be found in the Actuarial Section of this report, beginning on page 96.
Excellence in Financial Reporting
For the eleventh consecutive year, the Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Employees' Retirement System of Georgia for its annual comprehensive financial report for the fiscal year ended June 30, 2021. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive 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 18 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 annual comprehensive financial report continues to meet the Certificate of Achievement Program's requirements, and we are
(continued) 6
Introductory Section
submitting it to the GFOA to determine its eligibility for another certificate.
Initiatives
Pandemic Impact We attempted to begin our return to the office in the summer of 2021; however, with subsequent spikes in the number of COVID cases we did not get beyond 1 day per week. This was not effective in producing the desired result (namely, more face to face interaction among our staff) because there were too few people in the office on any given day. So we resumed 100% teleworking over the winter.
Communications Visual communication goals have been highly prioritized, with six Retirement Minute plan videos being produced, each featuring unique characters. These videos provide "snack-sized" bites of education to highlight the important plan points. The overarching goal is for every ERSGA plan to have a unique Retirement Minute overview video. Subtitled versions are also available. Virtual presentations were provided to state employees on financial literacy and comprehending plan benefits, with an emphasis on the importance of maximizing the full employer match. We also conducted numerous training sessions throughout the year for our employers regarding ongoing processing and implementation of new processes and legislation.
Beginning in mid-March, we returned to the office on a two days per week schedule. We anticipate that this schedule, with some possible fine-tuning, will be our permanent arrangement going forward. Pre-pandemic, we required three office days per week. Overall we feel better about our employees' ability to handle a disaster situation, should one arise in the future that requires us to be out of the office on short notice. And while some of our members are looking forward to seeing us in person again, we have done a good job of improving our ability to meet most of their needs remotely if necessary.
Technology The IT team continues to be heavily focused on cybersecurity and recently completed a third party security maturity assessment. ERS is developing a security roadmap and project list for moving our security posture forward. One of the major initiatives to come from this exercise is to contract with LexisNexis Risk Solutions for improved identity and authentication services for onboarding portal users. Other initiatives like physical security review, Multi-Factor, and single sign-on projects or technology reviews are on the roadmap.
ERS is also in the final stages of a major upgrade to our on-premises SharePoint environment. This project involved significant infrastructure buildout and end user training on the new platform. Other significant infrastructure changes include upgraded firewalls and deployment of new firewalls at both our primary and Disaster Recovery (DR) facilities.
The IT group is also leading an effort to refresh our Business Impact Analysis (BIA), Business Continuity Plan (BCP), and Disaster Recovery Plan. Sessions to document and capture major functional business processes are underway and will inform the BIA, BCP, and DR Plan.
Other Initiatives Significant legislative implementations included receiving employer contributions for all rehired retirees, new functionality to allow us to receive periodic payments for service purchases, and functionality related to our Supplemental Lifetime Guaranteed Income provision.
Partnerships with fellow State agencies included a video interview featuring the Department of Administrative Services (DOAS) Commissioner and the ERSGA Executive Director discussing the new ERSGA legislative updates to help Employers understand the changes. We also began a comprehensive redesign and update of our secure Employer Portal on our web site.
National Retirement Savings Month (NRSM) took place throughout October. This year's month-long efforts included highly targeted email communications, the promotion of the new plan videos, and a fun, savingthemed interactive crossword puzzle on our website.
Our Information Technology Division took the lead on conducting Business Impact Analysis interviews with the other divisions as we prepare to update our business continuity documentation. They also contracted with an outside partner to conduct an independent overall security posture assessment. This project provided ERSGA with an excellent position from which to begin work on our multi-year security roadmap.
Other Information
Independent Audit The Board of Trustees requires an annual audit of the financial statements of the System by independent, certified public accountants. The accounting firm of KPMG LLP was selected by the Board. The independent auditors'
(continued) 7
Introductory Section
report on the fiduciary activities and the related proprietary activity is included in the Financial Section of this report. Acknowledgments 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 ERSGA accomplish its mission over the years. Respectfully submitted,
James A. Potvin, Executive Director Employees' Retirement System of Georgia
8
Introductory Section
9
Introductory Section
10
Introductory Section
Administrative Staff and Organization
James A. Potvin Executive Director
Angie Surface Deputy Director
Charles W. Cary, Jr. CIO - Investment Services
Eddy A. Hicks Controller
Chris Hackett
Director Information Technology, CIO
Nicole McGlathery
Director Human Resources
Susan Anderson Carolyn Kaplan
Director Member
Director
Services, COO Financial Mgmt
Kelly Moody
Director Legislative
Affairs
Danielle Templeton
Flavia Peynado
Director
Director Quality
Communications
Assurance
Consulting Services
Cavanaugh Macdonald Consulting, LLC - Actuary KPMG LLP - Auditor Alight Solutions - Defined Contribution
Consultant and Administrator
Investment Advisors*
Albritton Capital Management Barrow, Hanley, Mewhinney & Strauss Cooke & Bieler Fisher Investments Mondrian Investment Partners Limited Sands Capital Management WCM Investment Management
Medical Advisors
Harold E. Sours, M.D., Atlanta, GA G. Lee Cross, M.D., Atlanta, GA Pedro F. Garcia, M.D., Atlanta, GA H. Rudolph Warren, M.D., Dunwoody, GA Quinton Pirkle, M.D., Atlanta, GA Joseph S. Wilkes, M.D., Sandy Springs, GA Howard A. McMahan, M.D., Marietta, GA Joseph W. Stubbs, M.D., Albany, GA
*See page 93 in the Investment Section for a summary of fees paid to investment advisors
11
Introductory Section
Organizational Chart
12
Financial Section
Georgia's Waterfalls
Anna Ruby Falls
Anna Ruby Falls
Anna Ruby Falls Trail: 0.9 miles, easy Anna Ruby Falls is a short distance from the festive town of Helen, Georgia. Anna Ruby Falls is a pair of breathtaking waterfalls, cascading in tandem through a scenic slice of North Georgia forest. The twin waterfalls spill from a towering cliff in wispy white tendrils before splashing and pooling over mossy boulders. It's a great North Georgia outdoor destination in any season. The hike is a relatively easy one, and though the outbound trek is mostly uphill, the trail is paved and just under a half mile. The trail is kid-friendly, stroller-friendly, and dog-friendly. While the twin waterfalls are clearly the main attraction, the trail itself is a beautiful one. The trail climbs to the tumbling waterfall alongside a waterfall-filled creek, catching views of the spilling and splashing creek through the forest. With abundant natural beauty, a rare double waterfall, and relatively easy access, this is one of North Georgia's most popular trails, and well worth a visit.
Learn more at atlantatrails.com
Financial Section
KPMG LLP Suite 2000 303 Peachtree Street, NE Atlanta, GA 30308-3210
Independent Auditors' Report
The Board of Trustees Employees' Retirement System of Georgia:
Report on the Audit of the Financial Statements
Opinions We have audited the financial statements of the fiduciary activities and the business-type activities 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, 2022, and the related notes to the financial statements, which collectively comprise the System's basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the fiduciary activities and business-type activities of the System, as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with U.S. generally accepted accounting principles.
Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the System and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with U.S. generally accepted accounting principles, and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the System's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
(continued) 15
Financial Section
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit 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 System's internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the System's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Required Supplementary Information U.S. generally accepted accounting principles require that the management's discussion and analysis on pages 18-25 and the schedules of employers' and nonemployer contributions defined benefit plans, schedules of employers' and nonemployer net pension/OPEB liability (asset) and related ratios defined benefit plans, schedules of changes in employers' and nonemployer net pension/OPEB liability(asset) defined benefit plans, schedule of investment returns, schedules of the System's proportionate share of the net OPEB liability(asset), the schedules of the System's contributions to OPEB plans, and the notes to required supplementary information on pages 67-85 be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 GAAS, 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 Information Our audit was conducted for the purpose of forming opinions 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. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The 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 GAAS. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information Management is responsible for the other information included in the annual comprehensive financial report. The other information comprises the introductory, investment, actuarial, and statistical sections but does not include the basic financial statements and our auditors' report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
16
Financial Section
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
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 solely 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 the effectiveness of the System's 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.
In accordance with Government Auditing Standards, we have also issued our report dated September 30, 2022 on
Atlanta, Georgia September 30, 2022
17
Financial Section
Management's Discussion and Analysis (Unaudited)
June 30, 2022
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, 2022. 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, a defined benefit OPEB plan, three defined contribution plans, and a custodial fund, all of which comprise the fiduciary funds. The System is also responsible for administering an enterprise fund, which comprises the proprietary fund.
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 plan consists of the State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEAD-OPEB).
The defined contribution retirement plans include: Georgia Defined Contribution Plan (GDCP) State of Georgia Employees' Qualified Trust Deferred Compensation Plan (401(k) Plan) State of Georgia Employees' Deferred Compensation Plan (457 Plan)
The custodial fund consists of the Survivors Benefit Fund (SBF).
The enterprise fund consists of the State Employees' Assurance Department Active Members Fund (SEAD-Active).
Overview of Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The System administers two categories of funds: fiduciary funds and a proprietary fund. Information related to the financial statements of the funds is presented in the notes to the financial statements.
Fiduciary funds are used to account for resources held for the benefit of parties outside of the System. The primary focus of the System's fiduciary funds is the accumulation of resources for and the payment of pension and OPEB benefits. The System maintains four types of fiduciary funds: (1) defined benefit pension trust funds which are used to report resources held in trust for pensions for retirees and beneficiaries covered by ERS, PSERS, LRS, GJRS, GMPF, SCJRF, and DARF (2) a defined benefit OPEB trust fund, which is used to report resources held in trust for other postemployment benefits of retirees and beneficiaries covered by SEAD-OPEB (3) defined contribution pension trust funds, which are used to accumulate contributions and earnings in the accounts of participants covered by GDCP, the 401(k) Plan, and the 457 Plan, and (4) a custodial fund, which is used to report resources held by the SBF in a custodial capacity for other plans.
Proprietary funds, which include enterprise and internal services funds, are used to account for the System's activities that are similar to private-sector businesses. The System maintains one proprietary fund, which is an enterprise fund,
(continued) 18
Financial Section
Management's Discussion and Analysis (Unaudited)
SEAD-Active. The primary focus of the System's enterprise fund is the accumulation of resources for, and payment of, group term life insurance benefits for active members of ERS, LRS, and GJRS covered by SEAD-Active.
The basic financial statements comprise statements for both fiduciary and proprietary funds. The fiduciary fund financial statements include (1) Combining Statement of Fiduciary Net Position (2) Defined Benefit Plans Combining Statement of Fiduciary Net Position (3) Combining Statement of Changes in Fiduciary Net Position, and (4) Defined Benefit Plans Combining Statement of Changes in Fiduciary Net Position. The proprietary fund financial statements include (1) Statement of Net Position (2) Statement of Revenues, Expenses, and Changes in Net Position and (3) Statement of Cash Flows.
In addition, the System presents six types of required supplementary schedules, which provide historical trend information about the plan. Four of the schedules are presented from the perspective of the System reporting as the plan and include (1) Schedules of Employers' and Nonemployer Contributions (2) Schedules of Employers' and Nonemployer Net Pension/OPEB Liability (Asset) and Related Ratios (3) Schedules of Changes in Employers' and Nonemployer Net Pension/OPEB Liability (Asset) and (4) Schedule of Investment Returns. Two of the schedules are presented from the perspective of the System reporting as the employer for its employees who participate in the SEAD-OPEB and the Georgia State Employees Postemployment Benefit Fund (State OPEB Fund) and include the (5) Schedules of the System's Proportionate Share of the Net OPEB Liability (Asset) and (6) Schedules of the System's Contributions to OPEB Plans. The System also includes in this report additional information to supplement the financial statements.
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 Governmental Accounting Standards Board (GASB). These statements provide information about the System's overall financial status.
Financial Highlights
The highlights of the fiduciary funds of the System are as follows:
The net position of the fiduciary funds decreased by $3.5 billion, or 15.4%, from $22.8 billion at June 30, 2021 to $19.3 billion at June 30, 2022. The decrease in net position was primarily due to negative equity and bond market returns.
For the year ended June 30, 2022, the total additions to net position resulted in a decrease of $1.6 billion, compared to $6.1 billion increase for the year ended June 30, 2021. For the year ended June 30, 2022, the additions consisted of employer, nonemployer contributing entities (nonemployer), and member contributions totaling $950.5 million, insurance premiums of $2.6 million, net investment loss of $2.6 billion, and participant fees of $629.0 thousand.
Net investment loss of $2.6 billion in 2022 (comprising interest and dividend income, the change in fair value of investments, and other, reduced by investment expenses) represents a decrease of $7.8 billion, or 149.6%, compared to the net investment income of $5.2 billion for the year ended June 30, 2021. The change in net investment income was primarily due to equity and bond market losses in 2022 compared to equity market gains in 2021.
The total deductions from net position increased by $82.0 million to $1.886 billion for the year ended June 30, 2022 compared to $1.804 billion for the year ended June 30, 2021. For the year ended June 30, 2022, the increase in deductions primarily consisted of an increase in benefit payments.
The highlights of the proprietary fund of the System are as follows:
The net position of the proprietary fund decreased by $50.9 million to $357.5 million at June 30, 2022 compared to $408.3 million at June 30, 2021. The decrease in net position was primarily due to negative equity and bond market returns.
(continued) 19
Financial Section
Management's Discussion and Analysis (Unaudited)
For the year ended June 30, 2022, total operating loss was $2.9 million compared to $4.4 million for the year ended June 30, 2021. The decrease relates primarily to an decrease in the number of active members who received death benefits during the year.
Net investment income allocated from the pooled investment fund of $(47.9) million in 2022 represents a decrease of $141.3 million, or 151.3%, compared to net investment income allocated from the pooled investment fund of $93.4 million for the year ended June 30, 2021. The change in investment income allocated from the pooled investment fund was primarily due to equity and bond market losses in 2022 compared to equity market gains in 2021.
Description of the Financial Statements
Fiduciary Funds
The Combining Statement of Fiduciary Net Position is the statement of financial position presenting information that includes the fiduciary funds' assets and liabilities, with the balance representing the Net Position Restricted for Pensions and OPEB and SBF. The investments of the funds in this statement are presented at fair value. This statement is presented on page 26.
The Combining Statement of Changes in Fiduciary Net Position reports how the fiduciary funds' net position changed during the fiscal year. The additions include contributions to the retirement plans from employers, nonemployer, and members; group term 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 28.
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 defined benefit plans administered by the System. These statements are on pages 27 and 29, respectively.
Proprietary Fund
The Statement of Net Position is the statement of financial position presenting information that includes the assets and liabilities, with the balance representing the net position. This statement is presented on page 30.
The Statement of Revenues, Expenses, and Changes in Net Position distinguishes operating revenues and expenses from nonoperating items. Principal operating revenues result from insurance premiums from members, while operating expenses result from death benefit payments and administrative expenses. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. This statement is presented on page 31.
The Statement of Cash Flows provides information about cash receipts and cash payments during the year. When used in conjunction with related disclosures and information in the other financial statements, the statement provides relevant information about the plan's ability to generate future net cash flows, the plan's ability to meet its obligations as they come due, and presents the reasons for differences between operating income and associated cash receipts and payments. This statement is presented on page 32.
Notes to 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 33.
(continued) 20
Financial Section
Management's Discussion and Analysis (Unaudited)
Required Supplementary Information begins on page 67. The required schedules are discussed as follows: The Schedule of Employers' and Nonemployer Contributions presents historical trend information for the last 10 consecutive fiscal years about the required contributions and the percent of required contributions actually contributed. The Schedule of Employers' and Nonemployer Net Pension/OPEB Liability and Related Ratios presents the components of the net pension/OPEB liability as of the fiscal year end and the fiduciary net position as a percentage of the total pension/OPEB liability as of that date. This trend information will be accumulated to display a 10-year presentation. The Schedule of Changes in Employers' and Nonemployer Net Pension/OPEB Liability presents total net pension/OPEB liability and is measured as total pension/OPEB liability less the amount of the fiduciary net position. This trend information will be accumulated to display a 10-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 10-year presentation. The Schedule of the System's Proportionate Share of the Net OPEB Liability presents historical trend information about the System's proportionate share of the net OPEB liability (asset) for its employees who participate in the SEAD-OPEB plan and the State OPEB Fund. This trend information will be accumulated to display a 10-year presentation. The Schedule of the System's Contributions to OPEB Plans presents historical trend information about the System's contributions for its employees who participate in the SEAD-OPEB plan and the State OPEB Fund. This trend information will be accumulated to display a 10-year presentation.
Three of the required schedules above, the Schedules of Employers' and Nonemployer Contributions, the Schedules of Employers' and Nonemployer Net Pension/OPEB Liability and Related Ratios, and the Schedules of Changes in Employers' and Nonemployer Net Pension/OPEB Liability are applicable to five of the defined benefit pension plans (ERS, PSERS, LRS, GJRS, and GMPF) and the defined benefit OPEB plan (SEAD-OPEB).
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 80.
Additional information is presented, beginning on page 86, and includes two schedules. The first schedule is the Schedule of Administrative Expenses Contributions and Expenses and presents the expenses incurred in the administration of the plans and funds, and the contributions from each plan and fund to provide for these expenses. The second schedule is the Schedule of Investment Expenses and presents the expenses incurred in the management of the System's investments.
(continued) 21
Financial Section
Management's Discussion and Analysis (Unaudited)
Financial Analysis of the System
A summary of the System's net position of the fiduciary funds at June 30, 2022 is as follows (dollars in thousands):
Net position
2022
2021
Amount change
Percentage change
Assets:
Cash, cash equivalents, and receivables
$
297,857
491,693
(193,836)
(39.4)%
Investments
19,412,898 22,790,665 (3,377,767)
(14.8)
Capital assets, net
6,313
6,388
(75)
(1.2)
Net OPEB asset
1,426
602
824
136.9
Total assets
19,718,494 23,289,348 (3,570,854)
(15.3)
Deferred outflows of resources
541
764
(223)
(29.2)
Liabilities:
Due to brokers, accounts payable, and insurance premiums payable
Due to other funds/plans and participating systems
Net OPEB liability
Total liabilities
Deferred inflows of resources
Net position
$
36,253 357,357
545 394,155
2,709 19,322,171
31,704 408,125
2,156 441,985
2,227 22,845,900
4,549 (50,768)
(1,611) (47,830)
482 (3,523,729)
14.3 (12.4) (74.7) (10.8) 21.6 (15.4)%
A summary of the System's net position of the proprietary fund at June 30, 2022 is as follows (dollars in thousands):
Net position
2022
2021
Amount change
Percentage change
Assets: Cash, cash equivalents, and receivables Investments Total assets
$
143
357,357
357,500
244 408,125 408,369
(101) (50,768) (50,869)
(41.4)% (12.4) (12.5)
Liabilities: Accounts payable and other Net position
48
$
357,452
46 408,323
2 (50,871)
4.3 (12.5)%
(continued) 22
Financial Section
Management's Discussion and Analysis (Unaudited)
The following table presents the investment allocation at June 30, 2022, and 2021:
Asset allocation at June 30 (in percentages): Equities:
Domestic International Private equity Domestic obligations: U.S. treasuries Corporate and other bonds International obligations: Corporates Commingled funds
2022
46.3 % 13.3
3.3
19.7 5.8
0.5 11.1
2021
47.5 % 15.8
2.3
17.6 5.3
0.9 10.6
Asset allocation at June 30 (in thousands): Equities:
Domestic International Private equity Domestic obligations: U.S. treasuries Corporate and other bonds International obligations: Corporates Mutual funds Commingled funds
$ 8,991,853 $ 10,817,734
2,577,425
3,594,250
631,937
525,508
3,824,614 1,125,699
4,008,672 1,205,160
93,118 7,338
2,160,914
209,045 8,969
2,421,327
$ 19,412,898 $ 22,790,665
The total investment portfolio decreased by $3.4 billion, or 14.8%, from 2021, which is due to negative equity and bond market returns.
Investment performance is calculated using a time-weighted rate of return using the Daily Valuation Method. The timeweighted rate of return for the fiscal year ended June 30, 2022, was (11.7)% with a (15.3)% return for equities, a 32.8% return for private equity, and a (7.4)% return for fixed income. The five-year annualized rate of return at June 30, 2022, was 7.1% with a 8.7% return for equities, a 25.5% return for private equity, and a 1.2% return for fixed income.
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 or out of the fund. The nondiscretionary cash flows for the plan, primarily contributions and benefit payments, have a considerable impact on the money-weighted returns of the portfolio. The money-weighted rate of return for the fiscal year ended June 30, 2022, was (18.7)%, compared to 19.4% for the fiscal year ended June 30, 2021.
(continued) 23
Financial Section
Management's Discussion and Analysis (Unaudited)
A summary of the changes in the System's net position of the fiduciary funds for the year ended June 30, 2022 is as follows (dollars in thousands):
Additions: Employer contributions Nonemployer contributions Member contributions Participant fees Insurance premiums Net investment income (loss) Other Total additions
Changes in net position
2022
2021
Amount change
Percentage change
$
679,528
43,181
227,829
629
2,641
(2,591,381)
14
(1,637,559)
665,792 41,552
210,177 628
2,817 5,224,908
16 6,145,890
13,736 1,629
17,652 1
(176) (7,816,289)
(2) (7,783,449)
2.1 % 3.9 8.4 0.2 (6.2) (149.6) (12.5) (126.6)
Deductions: Benefit payments Refunds Death benefits Administrative expenses Total deductions Change in net position
1,796,842 17,921 55,053 16,354
1,886,170 $ (3,523,729)
1,715,200 18,043 54,680 16,250
1,804,173 4,341,717
81,642 (122) 373 104
81,997 (7,865,446)
4.8 (0.7) 0.7 0.6 4.5 (181.2)%
Additions The System accumulates resources needed to fund benefit payments through contributions and returns on invested funds. In fiscal year 2022, total contributions increased $33.0 million, or 3.6%, primarily due to overall salary increases offset by a reduction in active membership. Net investment income decreased by $7.8 billion, or 149.6%, due primarily to equity and bond market losses in fiscal year 2022 compared to equity market gains in 2021.
Deductions For fiscal year 2022, total deductions increased $82.0 million, or 4.5%, primarily because of an increase in benefit payments of $81.6 million, or 4.8%, due to an increase in the number of retirees and beneficiaries receiving benefits. Refunds decreased by $122.0 thousand, or 0.7%, which was primarily due to a decrease in the number of refunds processed during 2022. Death benefits increased $373.0 thousand, or 0.7% primarily due to an increase in the number of death claims processed during 2022. Administrative expenses increased by $104.0 thousand, or 0.6%, primarily due to increased contractual services costs.
(continued) 24
Financial Section
Management's Discussion and Analysis (Unaudited)
A summary of the changes in the System's net position of the proprietary fund for the year ended June 30, 2022 is as follows (dollars in thousands):
Changes in net position
2022
2021
Amount change
Percentage change
Operating revenue:
Insurance premiums
$
479
521
(42)
(8.1) %
Total operating revenue
479
521
(42)
(8.1)
Operating expenses: Death benefits Administrative expenses Total operating expenses Total operating loss
3,333 84
3,417 (2,938)
4,870 77
4,947 (4,426)
(1,537) 7
(1,530) 1,488
(31.6) 9.0
(30.9) 33.6
Nonoperating revenue:
Allocation of investment income from pooled investment fund, net
Change in net position
$
(47,933) (50,871)
93,409 88,983
(141,342) (139,854)
(151.3) (157.2) %
Operating and nonoperating revenue The proprietary fund accumulates resources needed to fund death benefit payments through premiums earned and returns on invested funds. In fiscal year 2022, total premiums earned decreased $42 thousand, or 8.1%, primarily due to a reduction of active membership offset by overall salary increases. Effective January 1, 2009, the plan was closed to new members. Allocation of investment income from the pooled investment fund, net of related expenses, decreased by $141.3 million, or 151.3%, primarily due to equity and bond market losses in fiscal year 2022 compared to equity market gains in 2021.
Operating expenses For fiscal year 2022, death benefits decreased by $1.5 million, or 31.6%, which was primarily due to a decrease in the number of death claims processed during 2022. Administrative expenses increased by $7.0 thousand over the prior year, or 9.0%, primarily due to increased contractual services costs.
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.
25
Financial Section
Combining Statement of Fiduciary Net Position
June 30, 2022 (In thousands)
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 Corporate and other bonds International obligations: Corporates Equities: Domestic International Private equity Mutual funds Commingled funds Equity in pooled investment fund
Total investments
Capital assets, net
Net OPEB asset
Total assets Deferred outflows of resources
Liabilities Accounts payable and other Due to brokers for securities purchased Insurance premiums payable Due to participating systems Net OPEB liability
Total liabilities
Deferred inflows of resources Net position restricted for:
Pensions and OPEB Survivors Benefit Fund
Defined benefit plans
$
19,012
31,987 -- --
2,469 412
34,868
-- --
--
-- -- -- -- -- 16,741,116 16,741,116 6,313 1,426 16,802,735 541
21,041 --
473 --
545
22,059
2,709
$
16,778,508
$
--
Pooled Investment
Fund
149,030
Defined contribution plans
Georgia Defined Contribution Plan
401(k) Plan
16,950
16,592
457 Plan
1,134
-- 50,615
3,134 -- --
53,749
990
4,409
436
459
13
6
--
--
--
--
375
160
--
--
--
1,449
4,797
602
3,725,056 1,105,684
93,118
8,966,295 2,575,154
631,937 -- -- --
17,097,244 -- --
17,300,023 --
1,888 8,561
-- 17,289,574
-- 17,300,023
--
-- --
99,558 20,015
--
-- -- -- -- -- -- 119,573 -- -- 137,972 --
565 -- -- -- --
565 --
137,407 --
-- --
--
15,614 1,060 -- 3,816
1,514,432 --
1,534,922 -- --
1,556,311 --
2,871 -- -- -- --
2,871 --
1,553,440 --
-- --
--
9,944 1,211
-- 3,522 646,482
-- 661,159
-- -- 662,895 --
1,266 -- -- -- --
1,266 --
661,629 --
Custodial fund
Survivors Benefit Fund
86
Eliminations --
--
--
--
--
--
--
--
--
--
(412)
--
(412)
-- --
--
-- -- -- -- -- 191,101 191,101 -- -- 191,187 --
-- -- -- -- -- -- --
-- 191,187
-- --
--
-- -- -- -- -- (16,932,217) (16,932,217) -- -- (16,932,629) --
-- -- (412) (16,932,217) -- (16,932,629) --
-- --
See accompanying notes to financial statements.
Total
202,804
37,822 51,093
3,134 3,004
-- 95,053
3,824,614 1,125,699
93,118
8,991,853 2,577,425
631,937 7,338
2,160,914 --
19,412,898 6,313 1,426
19,718,494 541
27,631 8,561 61
357,357 545
394,155 2,709
19,130,984 191,187
26
Financial Section
Defined Benefit Plans - Combining Statement of Fiduciary Net Position
June 30, 2022 (In thousands)
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 Corporate and other bonds International obligations: Corporates Equities: Domestic International Private equity Mutual funds Commingled funds Equity in pooled investment fund
Total investments
Capital assets, net
Net OPEB asset
Total assets
Deferred outflows of resources
Liabilities
Accounts payable and other Due to brokers for securities purchased Insurance premiums payable Due to participating systems Net OPEB liability
Total liabilities
Deferred inflows of resources
Net position restricted for pensions and OPEB
Defined benefit pension plans
Employees' Retirement
System
$
17,889
Public School Employees Retirement System
223
Legislative Retirement
System
45
Georgia Judicial Retirement System
696
Georgia Military Pension
Fund
56
31,104
1
--
882
--
--
--
--
--
--
--
--
--
--
--
2,082
387
--
--
--
--
--
--
--
--
33,186
388
--
882
--
-- --
--
-- -- -- -- -- 13,793,518 13,793,518 6,313 1,426 13,852,332 541
18,645 --
464 --
545 19,654
2,709
$ 13,830,510
-- --
--
-- -- -- -- -- 1,026,546 1,026,546 -- -- 1,027,157 --
925 -- -- -- --
925 --
1,026,232
-- --
--
-- -- -- -- -- 36,112 36,112 -- -- 36,157 --
125 -- 1 -- --
126 --
36,031
-- --
--
-- -- -- -- -- 515,797 515,797 -- -- 517,375 --
813 -- 8 -- --
821 --
516,554
-- --
--
-- -- -- -- -- 34,923 34,923 -- -- 34,979 --
91 -- -- -- -- 91 --
34,888
Superior Court Judges
Retirement Fund 11
-- -- -- -- --
--
-- --
--
-- -- -- -- -- --
-- --
--
11 --
5 -- -- -- -- 5
--
6
District Attorneys Retirement
Fund 4
-- -- -- -- -- --
-- --
--
-- -- -- -- -- -- -- -- -- 4 --
2 -- -- -- -- 2 --
2
Defined benefit OPEB plan
State Employees' Assurance Department
OPEB 88
-- -- -- -- 412
412
-- --
--
-- -- -- -- -- 1,334,220
1,334,220 --
--
1,334,720 --
435 -- -- -- --
435
--
1,334,285
Defined benefit plans
total 19,012
31,987 -- --
2,469 412
34,868
-- --
--
-- -- -- -- -- 16,741,116 16,741,116 6,313 1,426 16,802,735 541
21,041 --
473 --
545 22,059
2,709
16,778,508
See accompanying notes to financial statements.
27
Financial Section
Combining Statement of Changes in Fiduciary Net Position
Year ended June 30, 2022 (In thousands)
Defined contribution plans
Custodial fund
Additions: Contributions: Employer Nonemployer Member Participant fees Insurance premiums Administrative expense allotment
Investment income (loss): Net decrease in fair value of investments Interest and dividends Other Less investment expenses Allocation of investment loss
Net investment loss
Total additions
Deductions: Benefit payments Refunds of member contributions and interest Death benefits Administrative expenses
Total deductions
Change in net position
Net position restricted for pensions and OPEB and SBF:
Beginning of year
End of year
Defined benefit plans
Pooled Investment
Fund
Georgia Defined Contribution
Plan
401(k) Plan
457 Plan
Survivors Benefit Fund
$
621,990
--
43,181
--
44,196
--
--
--
2,641
--
14
--
-- -- -- (10,122) (2,241,862)
(2,251,984)
(1,539,962)
(2,675,000) 369,968 -- (10,308)
2,315,340
--
--
1,608,800
--
7,852
--
55,053
--
11,345
--
1,683,050
--
(3,223,012)
--
20,001,520
--
$ 16,778,508
--
--
57,538
--
--
--
--
--
--
16,228
146,280
21,125
--
--
583
46
--
--
--
--
--
--
--
--
--
(10,356) 2,436 -- (72) --
(7,992)
8,236
(220,752) 35
589 (2,476)
--
(222,604)
(18,203)
(82,861) 17
502 (848)
--
(83,190)
(62,019)
-- -- -- -- (25,611)
(25,611)
(25,611)
9 10,069
-- 987
11,065
(2,829)
137,593 -- --
3,437
141,030
(159,233)
50,440 -- --
585
51,025
(113,044)
-- -- -- --
--
(25,611)
140,236 137,407
1,712,673 1,553,440
774,673 661,629
216,798 191,187
Total
679,528 43,181
227,829 629
2,641 14
(2,988,969) 372,456 1,091 (23,826) 47,867
(2,591,381) (1,637,559)
1,796,842 17,921 55,053 16,354
1,886,170 (3,523,729)
22,845,900 19,322,171
See accompanying notes to financial statements.
28
Financial Section
Defined Benefit Plans - Combining Statement of Changes in Fiduciary Net Position
Year ended June 30, 2022 (In thousands)
Additions: Contributions: Employer Nonemployer Member Participant fees Insurance premiums Administrative expense allotment
Investment income (loss): Net decrease in fair value of investments Interest and dividends Other Less investment expenses Allocation of investment loss
Net investment loss
Total additions
Employees' Retirement
System
Public School Employees Retirement System
Defined benefit pension plans
Legislative Retirement
System
Georgia Judicial Retirement System
Georgia Military Pension
Fund
Superior Court Judges
Retirement Fund
District Attorneys Retirement
Fund
Defined benefit OPEB
plan
State Employees' Assurance Department
OPEB
Defined benefit plans
total
$
611,410
--
--
7,585
2,697
275
8,313
32,491
--
2,377
--
--
36,130
2,256
344
5,466
--
--
--
--
--
--
--
--
--
--
--
--
--
--
10
--
--
--
--
2
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
(8,912)
(399)
(16)
(193)
(6)
--
(1,846,683)
(137,746)
(4,832)
(69,141)
(4,687)
--
(1,855,595)
(138,145)
(4,848)
(69,334)
(4,693)
--
(1,199,732)
(103,398)
(4,504)
(53,906)
(1,996)
277
23
--
621,990
--
--
43,181
--
--
44,196
--
--
--
--
2,641
2,641
2
--
14
--
--
--
--
--
--
--
--
--
--
(596)
(10,122)
--
(178,773)
(2,241,862)
--
(179,369)
(2,251,984)
25
(176,728)
(1,539,962)
Deductions: Benefit payments Refunds of member contributions and interest Death benefits Administrative expenses
Total deductions
Change in net position
Net position restricted for pensions and OPEB:
1,502,904
68,203
1,818
34,050
1,527
275
7,182
614
33
23
--
--
--
--
--
--
--
--
7,577
1,523
327
893
266
2
1,517,663
70,340
2,178
34,966
1,793
277
(2,717,395)
(173,738)
(6,682)
(88,872)
(3,789)
--
Beginning of year End of year
16,547,905
1,199,970
42,713
605,426
38,677
6
$ 13,830,510
1,026,232
36,031
516,554
34,888
6
23
--
1,608,800
--
--
7,852
--
55,053
55,053
2
755
11,345
25
55,808
1,683,050
--
(232,536)
(3,223,012)
2
1,566,821
20,001,520
2
1,334,285
16,778,508
See accompanying notes to financial statements.
29
Financial Section
Statement of Net Position State Employees' Assurance Department Active Members Fund
June 30, 2022 (In thousands)
Assets:
Cash and cash equivalents
$
Receivables: Unremitted insurance premiums
Investments - at fair value: Equity share of pooled investment fund
Total assets
Liabilities:
Accounts payable and other
Total liabilities
Total net position
$
82
61
357,357 357,500
48 48 357,452
See accompanying notes to financial statements.
30
Financial Section
Statement of Revenues, Expenses, and Changes in Net Position State Employees' Assurance Department Active Members Fund
Year ended June 30, 2022 (In thousands)
Operating revenue:
Insurance premiums
$
Total operating revenue
Operating expenses: Death benefits Administrative expenses Total operating expenses Total operating loss
Nonoperating revenues (expenses): Allocation of investment loss from pooled investment fund Less investment expenses Total nonoperating expenses Change in net position
Total net position:
Beginning of year
End of year
$
479 479
3,333 84
3,417 (2,938)
(47,867) (66)
(47,933) (50,871)
408,323 357,452
See accompanying notes to financial statements.
31
Financial Section
Statement of Cash Flows State Employees' Assurance Department Active Members Fund
Year ended June 30, 2022 (In thousands)
Cash flows from operating activities:
Insurance premiums received
$
Death benefits paid
Administrative fees paid
Net cash used in operating activities
Cash flows from investing activities: Withdrawals from pooled investment fund Investment expenses paid Net cash provided by investing activities Net decrease in cash and cash equivalents
Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year
Reconciliation of operating loss to net cash used in operating activities: Operating loss Changes in assets and liabilities:
Unremitted Insurance Premiums
Accounts payable and other
Net cash used in operating activities
$
See accompanying notes to financial statements.
479 (3,333)
(82) (2,936)
2,900 (66)
2,834 (101) 183
82
(2,938)
-- 2 (2,936)
32
Financial Section
Notes to Financial Statements
June 30, 2022
(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), comprise 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), Superior Court Judges Retirement Fund (SCJRF), District Attorneys Retirement Fund (DARF), State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEAD-OPEB), Georgia Defined Contribution Plan (GDCP), State of Georgia Employees' Qualified Trust Deferred Compensation Plan (401(k) Plan), State of Georgia Employees' Deferred Compensation Plan (457 Plan), Survivors Benefit Fund (SBF), and State Employees' Assurance Department Active Members Fund (SEAD-Active). All significant transactions among the various systems, departments, and funds have been eliminated. The Boards of Trustees, comprising 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 (ERS Board) and has the powers and privileges of a corporation. There were 396 employers and 1 nonemployer contributing entity participating in the plan during 2022. Total participation in ERS at June 30, 2022 was 177,693 as detailed in the following chart:
ERS Membership as of June 30, 2022
Inactive members and beneficiaries currently receiving benefits Inactive members entitled to benefits but not yet receiving benefits Active plan members
52,526
54,530
70,637
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 30 years of creditable service,
(continued) 33
Financial Section
Notes to Financial Statements
June 30, 2022
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, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS.
Contributions and Vesting
Member contributions under the Old Plan are 4% of annual compensation, up to $4,200, plus 6% of annual compensation in excess of $4,200. Under the Old Plan, the state pays member contributions in excess of 1.25% of annual compensation. 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 and their employees who took office or were employed prior to July 1, 2012 are funded by the State of Georgia on behalf of the local county employer. Pursuant to O.C.G.A. 47-2-290, 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 2022 were based on the June 30, 2019 actuarial valuation for the Old Plan, New Plan, and GSEPS, as follows:
Old Plan New Plan GSEPS
Employer and nonemployer: Normal Employer paid for member Accrued liability
1.48 % 4.75 % 18.40 %
6.23 % -- %
18.40 %
3.17 % -- %
18.40 %
Total
24.63 % 24.63 % 21.57 %
Members become vested after 10 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, plus two additional trustees, administers PSERS (PSERS Board). There were 188 employers and 1 nonemployer contributing entity participating in the plan during 2022. Total participation in PSERS at June 30, 2022 was 105,412 as detailed in the chart on the following page:
(continued) 34
Financial Section
Notes to Financial Statements
June 30, 2022
PSERS Membership as of June 30, 2022
Inactive members and beneficiaries currently receiving benefits Inactive members entitled to benefits but not yet receiving benefits Active plan members
31,833
19,852
53,727
Benefits A member may retire and elect to receive normal monthly retirement benefits after completion of 10 years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of 10 years of service.
Upon retirement, the member will receive a monthly benefit of $15.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits.
Contributions and Vesting Individuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board.
Employer contributions required for the year ended June 30, 2022 were $888.52 per active member and were based on the June 30, 2019 actuarial valuation.
Members become vested after 10 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 19671971, 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. There was one employer in the plan for 2022. Total participation in LRS at June 30, 2022 was 662 as detailed in the following chart:
LRS Membership as of June 30, 2022
Inactive members and beneficiaries currently receiving benefits Inactive members entitled to benefits but not yet receiving benefits Active plan members
217 281
164
(continued) 35
Financial Section
Notes to Financial Statements
June 30, 2022
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. 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.
There were no employer contributions required for the year ended June 30, 2022 based on the June 30, 2019 actuarial valuation.
Members become vested after eight years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits.
(d) GJRS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1998 for the purpose of providing retirement allowances for judges and solicitors general of the state courts and juvenile court judges in Georgia, and their survivors and other beneficiaries, superior court judges of the State of Georgia, district attorneys of the State of Georgia, and certain other employees of the General Assembly 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 and three additional trustees administer GJRS (GJRS Board). There were 92 employers and 1 nonemployer contributing entity participating in the plan during 2022. Total participation in GJRS at June 30, 2022 was 1,073 as detailed in the following chart:
GJRS Membership as of June 30, 2022
Inactive members and beneficiaries currently receiving benefits Inactive members entitled to benefits but not yet receiving benefits Active plan members
524
467
82
(continued) 36
Financial Section
Notes to Financial Statements
June 30, 2022
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.
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.
Employer and nonemployer contributions required for fiscal year 2022 were based on the June 30, 2019 actuarial valuation, as follows:
Employer and nonemployer: Normal Accrued liability Total
13.93 % (5.12) 8.81 %
Members become vested after 10 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) 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 (the National Guard). The ERS Board administers the GMPF.
Membership As of June 30, 2022, GMPF had 1,472 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.
(continued) 37
Financial Section
Notes to Financial Statements
June 30, 2022
Contributions and Vesting Employer contributions are actuarially determined and approved and certified by the ERS Board. There are no member contributions required.
Employer contributions required for the year ended June 30, 2022 were $196.72 per active member and were based on the June 30, 2019 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) 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 (SCJRF Board). The ERS Board and SCJRF Board entered into a contract for the System to administer the plan effective July 1, 1995.
Membership As of June 30, 2022, SCJRF had four retirees and beneficiaries currently receiving benefits and no active members. No new members are allowed in 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.
(g) 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 (DARF Board). The ERS Board and DARF Board entered into a contract for the System to administer the plan effective July 1, 1995.
Membership As of June 30, 2022, DARF had two 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.
(h) SEAD-OPEB is a cost-sharing multiple-employer defined benefit other postemployment benefit plan created in 2007 by the Georgia General Assembly to amend Title 47 of the O.C.G.A., 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
(continued) 38
Financial Section
Notes to Financial Statements
June 30, 2022
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 389 employers and 1 nonemployer contributing entity participating in the plan during 2022. Total participation in SEAD-OPEB at June 30, 2022 was 62,356 as detailed in the following chart:
SEAD Membership as of June 30, 2022
Retirees and beneficiaries Terminated employees Active plan members
1,059
16,926 44,371
Employee contribution rates as a percentage of member's salaries for the fiscal year ended June 30, 2022 were 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 (SEAD Board) 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, 2022.
According to the policy terms covering the lives of members, insurance coverage is provided on a monthly, renewable term basis, and no return premiums or cash value are earned. The net position represents the excess accumulation of investment income and premiums over benefit payments and expenses, and is held as 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.
(i) 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. There were 65 employers participating in the plan during 2022. There were 137,153 members as of June 30, 2022.
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. If a terminated member has less than $5,000 credited to his/her account, the ERS Board has the option of requiring a lump-sum
(continued) 39
Financial Section
Notes to Financial Statements
June 30, 2022
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 and Vesting Members are required to contribute 7.5% of their annual salary and vest immediately in the plan upon contribution. There are no employer contributions. Earnings will be credited to each member's account as adopted by the ERS Board. Upon termination of employment, the amount of the member's account is refundable upon request by the member.
(j) The 401(k) Plan was established by the State of Georgia Employee Benefit Plan Council in accordance with Georgia Law 1985, as amended, O.C.G.A, 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, however, on July 1, 2020, Fayette County Board of Education discontinued participation; on July 1, 2006, the Plan became available to employees of Walton County Board of Education; on January 1, 2010, the Plan became available to employees of Henry County Board of Education; and on July 1, 2017, the Plan became available to employees of the Baldwin County Board of Education.
Effective July 1, 1998, the State of Georgia Employee's Deferred Compensation Group Trust (the Master Trust) was formed for the State of Georgia Deferred Compensation Program to serve as the funding medium for the 401(k) Plan. At that time, the 401(k) Plan began operating on an employee elective deferral basis for all state employees working at least 1,000 hours in a 12-month period. All assets of the 401(k) Plan are held in trust for the exclusive benefit of the participants and their beneficiaries. The assets of the 401(k) Plan and the 457 Plan are commingled in the Master Trust with the respective trusts owning units of the Master Trust. Participant contributions are invested according to the participant's investment election. If the participant does not make an election, investments are automatically defaulted to a Lifecycle Fund based on the participant's date of birth.
Effective July 1, 2005 (HB275), the ERS Board became the trustee of the 401(k) Plan. Alight Solutions and J.P. Morgan 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 $290,000 base salary in calendar year 2021 and $305,000 in calendar year 2022). 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 contributions above 1% and up to 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 additional 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.
(continued) 40
Financial Section
Notes to Financial Statements
June 30, 2022
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 schedule as follows:
Less than 1 year 1 2 3 4 5 or more years
-- % 20 40 60 80 100
For CSB/GLC participants whose services terminated prior to January 1, 2010 but after December 31, 2001, the following vesting schedule applies:
Less than 2 years 2 3 4 5 6 or more years
-- % 20 40 60 80 100
For CSB/GLC participants whose services terminated prior to January 1, 2002, the following vesting schedule applies:
Less than 3 years 3 4 5 6 7 or more years
-- % 20 40 60 80 100
Employee contributions and earnings thereon are 100% vested at all times. The 401(k) Plan also allows participants to roll over amounts from other qualified plans to their respective account in the 401(k) Plan on approval by the 401(k) plan administrator. Such rollovers are 100% vested at the time of transfer.
Participation As of June 30, 2022, the 401(k) Plan had 74,098 participants with a balance. A total of 461 employers transmitted contributions to the plan during 2022.
Distributions The participant may receive the value of his or her vested accounts upon attaining age 59 , 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.
(k) The 457 Plan was established by the State Personnel Board in accordance with Georgia Law 1974, page 198 as amended, O.C.G.A., Sections 45-18-30 through 45-18-36, and Section 457 of the IRC. The 457 Plan is available to employees of the State of Georgia and county health departments and permits such
(continued) 41
Financial Section
Notes to Financial Statements
June 30, 2022
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), the ERS Board became the trustee of the 457 Plan. Alight Solutions and J.P. Morgan hold, administer, and invest the assets of the Master Trust.
Participation As of June 30, 2022, the 457 Plan had 11,718 participants with a balance. A total of 336 employers transmitted contributions to the plan during 2022.
Distributions The balance in the employee's account in the 457 Plan is not available to the employee until age 70 , 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.
(l) 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 as a custodial fund to reflect ERS's custodial responsibility and to account for assets held for distribution to SEAD-Active and SEAD-OPEB. SBF may only be used to pay benefits or expenses of SEAD-OPEB or SEAD-Active with authorization by the ERS Board. An actuarial valuation is not prepared, as there are no funding requirements.
(m) SEAD-Active is a cost-sharing multiple-employer life insurance plan created in 2007 by the Georgia General Assembly to amend Title 47 of the O.C.G.A., 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 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 389 employers and 1 nonemployer contributing entity participating in the plan during 2022. As of June 30, 2022, there were 16,926 active plan members in SEAD-Active.
Employee contribution rates as a percentage of member's salaries for the fiscal year ended June 30, 2022 were 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 SEAD Board 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, 2022.
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
(continued) 42
Financial Section
Notes to Financial Statements
June 30, 2022
excess accumulation of investment income and premiums over benefit payments and expenses, and is 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 a lump sum to the beneficiary upon death of the member.
Administrative costs for the plan are determined based on the plan's share of overhead costs to accumulate and invest funds, actuarial services, and to process benefit payments to beneficiaries. Administrative fees are financed from the assets of the plan.
(3) Significant Accounting Policies and System Asset Matters
(a) Basis of Accounting The System's financial statements are prepared in accordance with U.S. generally accepted accounting principles as applicable to governmental organizations. The System follows the reporting requirements established by the GASB.
Fiduciary funds include the defined benefit plans and defined contribution plans, which are accounted for on the flow of economic resources measurement focus and the accrual basis of accounting. Contributions to the defined benefit pension plans and OPEB plan are recognized when due, based on statutory requirements. Benefits and refunds are recognized when due and payable in accordance with the terms of each plan. Contributions to the deferred compensation plans are recognized as received. The SBF is a custodial fund and accounted for on the flow of economic resources measurement focus and the accrual basis of accounting. The proprietary fund comprises the SEAD-Active plan. This fund is accounted for on the flow of economic resources measurement focus and uses the accrual basis of accounting. The principal operating revenues are derived from insurance premiums. Operating expenses include the cost of claims and related expenses.
(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 Statements No. 80, Blending Requirements for Certain Component Units, No. 61, The Financial Reporting Entity's Omnibus An Amendment of GASB Statement No. 14 and No. 34, and 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.
(d) Investments Investments are reported at fair value, and in some cases, 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 Pooled Investment Fund (the Fund) applies the practical expedient to its investments in private investment companies on an investment-byinvestment basis, 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
(continued) 43
Financial Section
Notes to Financial Statements
June 30, 2022
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 determinable 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 with 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 and OPEB plans. The following was the System's adopted asset allocation policy as of June 30, 2022:
Asset class Fixed income Equities Alternative investments
Total
Target allocation 25%-45% 55%-75% 0%-5% 100%
Approximately 19.7% of the investments held in trust for pension and OPEB 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 and SBF.
For the year ended June 30, 2022, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was (18.7)%. 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 and reside in ERS. 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 3 to 40 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. The following table summarizes the estimated useful life by class:
Capital Asset Class
Buildings Furniture and fixtures Computer equipment Computer software
Estimated Useful Life
40 years 5-7 years 3-7 years 3-10 years
(continued) 44
Financial Section
Notes to Financial Statements
June 30, 2022
(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
Pronouncements effective for the 2022 financial statements:
In June 2017, the GASB issued Statement No. 87, Leases effective for fiscal years beginning after December 15, 2019. In May 2020, the GASB issued Statement No. 95 which changed the effective date for Statement No. 87 to fiscal years beginning after June 15, 2021. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. The System has evaluated its applicable leases and deemed them immaterial for reporting purposes.
In June 2018, the GASB issued Statement No. 89, Accounting for Interest Costs Incurred before the End of a Construction Period effective for fiscal years beginning after December 15, 2019. In May 2020, the GASB issued Statement No. 95 which changed the effective date for Statement No. 89 to fiscal years beginning after December 15, 2020. The objectives of this Statement are to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period. In addition, this Statement's goal is to simplify accounting for interest cost incurred before the end of a construction period. There are no applicable reporting requirements for the System related to this Statement.
In January 2020, the GASB issued Statement No. 92, Omnibus 2020 effective for fiscal years beginning after June 15, 2020. In May 2020, the GASB issued Statement No. 95 which changed the effective date for Statement No. 92 to fiscal years beginning after June 15, 2021. The objectives of this Statement are to enhance comparability in accounting and financial reporting as well as improve the consistency of authoritative literature. The variety of topics covered include the effective date for Statement No. 87, the reporting of intra-entity transfers, the applicability of certain requirements of Statements No. 73, 74, and 84, and the measurement of liabilities related to asset retirement obligations. There are no applicable reporting requirements for the System related to this Statement.
In March 2020, the GASB issued Statement No. 93, Replacement of Interbank Offered Rates, effective for fiscal years ending after December 31, 2021 for the removal of LIBOR as a benchmark interest rate. The objective of this Statement is to address the accounting and financial reporting implications that result from the replacement of LIBOR. There are no applicable reporting requirements for the System related to this Statement.
In June 2020, the GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans - an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32, effective for fiscal years beginning after June 15, 2021. The objectives of this Statement are to increase consistency and comparability related to the reporting of fiduciary component units when a potential component unit does not have a governing board, mitigate the costs associated with the reporting of defined contribution pension plans or other postemployment benefit plans as fiduciary component units, and enhance the relevance, consistency, and comparability for Internal Revenue Code Section 457 deferred compensation plans. There are no applicable reporting requirements for the System related to this Statement.
(continued) 45
Financial Section
Notes to Financial Statements
June 30, 2022
In April 2022, the GASB issued Statement No. 99, Omnibus 2022, effective upon issuance, except for the requirements related to leases, PPP's, and SBITAs that are effective for fiscal years beginning after June 15, 2022 and for the requirements related to financial guarantees and classification and reporting of derivative instruments that are effective for fiscal years beginning after June 15, 2023. The objective of this Statement is to improve the consistency of authoritative literature and enhance the comparability in accounting and financial reporting. The variety of topics covered include the requirements related to the extension of the use of LIBOR, disclosures of nonmonetary transactions, pledges of future revenues by the pledging governments, clarification of provisions in Statement No. 34, and terminology used in Statement No. 53 and 63. There are no applicable reporting requirements for the System related to this Statement
Pronouncements issued, but not yet effective:
In May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations effective for fiscal years beginning after December 15, 2020. In May 2020, the GASB issued Statement No. 95 which changed the effective date for Statement No. 91 to fiscal years beginning after December 15, 2021. The objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with commitments extended by issuers, arrangements associated with conduit debt obligations, and related note disclosures. The System does not anticipate this statement will impact its financial statements and related reporting.
In March 2020, the GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements effective for fiscal years beginning after June 15, 2022. The objective of this Statement is to improve the comparability of financial statements among governments that enter into public-private and public-public partnership arrangements and availability payment arrangements. The System does not anticipate this pronouncement will impact its financial statements and related reporting.
In May 2020, the GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements, effective for fiscal years beginning after June 15, 2022. The objective of this Statement is to better meet the informational needs of financial statement users by establishing uniform accounting and financial reporting requirements and improving the comparability of financial statements among governments that have entered into subscription-based information technology arrangements. The System is in the process of evaluating the impact of this pronouncement on its financial statements.
In April 2022, the GASB issued Statement No. 99, Omnibus 2022, effective for fiscal years beginning after June 15, 2022 for the requirements related to leases, PPP's, and SBITAs, and effective for fiscal years beginning after June 15, 2023 for the requirements related to financial guarantees and classification and reporting of derivative instruments. The objective of this Statement is to improve the consistency of authoritative literature and enhance the comparability in accounting and financial reporting. The System is in the process of evaluating the impact of this pronouncement on its financial statements.
In June 2022, the GASB issued Statement No. 100, Accounting Changes and Error Corrections -- an amendment of GASB Statement No. 62, effective for fiscal years beginning after June 15, 2023. The objective of this Statement is to improve the clarity of the accounting and financial reporting for accounting changes and error corrections to have greater consistency in the application. The System is in the process of evaluating the impact of this pronouncement on its financial statements.
In June 2022, the GASB issued Statement No. 101, Compensated Absences, effective for fiscal years beginning after December 15, 2023. The objective of this Statement is to eliminate potential comparability issues between governments that offer different leave types and enhance the relevance and reliability of the liability for compensated absences. The System is in the process of evaluating the impact of this pronouncement on its financial statements.
(continued) 46
Financial Section
Notes to Financial Statements
June 30, 2022
(4) Investment Program
The System maintains sufficient cash to meet its immediate liquidity needs. Cash not immediately needed is invested as directed by the ERS Board. 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 $202.8 million at June 30, 2022, with actual bank balances of $208.0 million. The System's bank balances of $191.9 million are fully insured through the Federal Deposit Insurance Corporation, an independent agency of the U.S. government. Deposit amounts not covered under FDIC in the amount of $39.2 thousand are included in the State's Secure Deposit Program (SDP) and are fully insured. In 2018, the State of Georgia implemented the SDP, a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. For disclosure purposes, all deposits of participants in the SDP are considered to be fully insured. The remaining bank deposits of $16.1 million are uninsured and uncollateralized. The System's noncash investments are held in the System's name and are not exposed to custodial credit risk.
The System engages in repurchase and reverse repurchase agreements as part of the securities lending program. The System and the 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.
Short-term securities authorized but not currently used are:
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-l and/or A-l 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-l and/or A-l 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, 2022, the System held U.S. Treasury bonds of approximately $3.8 billion.
U.S. and foreign corporate obligations. At June 30, 2022, the System held U.S. corporate bonds of approximately $1.1 billion and international corporate bonds of approximately $93.1 million.
(continued) 47
Financial Section
Notes to Financial Statements
June 30, 2022
Obligations unconditionally guaranteed by agencies of the U.S. government. At June 30, 2022, the System did not hold agency bonds.
Private placements are authorized under the same general restrictions applicable to corporate bonds. At June 30, 2022, the System did not hold private placements.
Mortgage investments are authorized to the extent that they are secured by first mortgages on improved real property located in the State of Georgia.
Equity securities are also authorized (in statute) 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 advisers. Buy/sell decisions are based on securities meeting rating criteria established by the ERS Board, 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 ERS Board 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, 2022, the System held domestic equities of approximately $9.0 billion, excluding the 401(k) and 457 plans.
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, 2022, the System held international equities of approximately $1.3 billion and ADRs of approximately $1.3 billion, excluding the 401(k) and 457 plans.
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 1.0% of the System's plan assets until the first occurrence that 4.5% 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, 2022, the System held private equity investments of approximately $631.9 million.
The 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 ERS Board. Participants may also contribute to a self-directed brokerage account that offers investments in various mutual funds and equities. At June 30, 2022, the deferred compensation plans held commingled funds of approximately $2.2 billion, mutual funds of approximately $7.3 million, domestic equities of approximately $25.6 million, and international equities of approximately $2.3 million.
Substantially all of the investments of ERS, PSERS, LRS, GJRS, GMPF, SEAD-OPEB, SBF, and SEADActive 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) 48
Financial Section
Notes to Financial Statements
June 30, 2022
The units and fair value of each plan's equity in the pooled common investment fund at June 30, 2022, were as follows (dollars in thousands):
Employees' Retirement System Public School Employees Retirement System Legislative Retirement System Georgia Judicial Retirement System Georgia Military Pension Fund State Employees' Assurance Department - OPEB Survivors Benefit Fund
Total defined benefit plans
State Employees' Assurance Department - Active
Total in pooled investment funds
Fair value $ 13,793,518
1,026,546 36,112
515,797 34,923
1,334,220 191,101
16,932,217
357,357
$ 17,289,574
Units 2,165,903
161,192 5,670
80,992 5,484
209,504 30,007
2,658,752
56,113
2,714,865
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.
The three levels of the fair value hierarchy are as follows:
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 general partner 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 next page shows the fair value leveling of the System's investments (in thousands):
(continued) 49
Financial Section
Notes to Financial Statements
June 30, 2022
Investments by fair value level Equities:
Domestic International Obligations: Domestic:
U.S. treasuries Corporate bonds International: Corporate bonds Mutual funds Commingled funds
Total investments by fair value level Investments measured at NAV* Private equity funds
Total investments
Fair value measures using
Quoted prices in
active markets for
identical assets
(Level 1)
Significant other
observable inputs
(Level 2)
Significant unobservable
inputs
(Level 3)
Total
$ 8,991,853 2,563,381
-- 13,690
-- 8,991,853 355 2,577,425
3,824,614 --
-- 7,338 91,272
-- 1,125,700
93,118 --
2,069,642
$ 15,478,458 3,302,150
-- 3,824,614 -- 1,125,699
--
93,118
--
7,338
-- 2,160,914
355 18,780,961
631,937 $ 19,412,898
*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 Combining Statement of Fiduciary Net Position.
Equity securities classified in Level 1 are valued using prices quoted in active markets for those securities. Equity securities in Level 2 are valued using prices quoted for similar instruments in active markets. Equity securities classified in Level 3, if any, 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.
Unfunded commitments, redemption frequency, and redemption notice period relative to the System's alternative investments for which the System utilized NAV or its equivalent relative to the determination of fair value at June 30, 2022, are noted on the following page (in thousands):
(continued) 50
Financial Section
Notes to Financial Statements
June 30, 2022
Private equity funds
Investments measured at
NAV
$ 631,937
Unfunded commitments
256,355
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. Two of the 21 partnerships held are secondary investments and are in or nearing the wind up phase of the fund. The remaining investments typically have an approximate life of 810 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 System. O.C.G.A. 47-20-84 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. 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, 2022, are shown in the table on the following page (in thousands):
(continued) 51
Financial Section
Notes to Financial Statements
June 30, 2022
Quality ratings of fixed income investments held at June 30, 2022
Investment type Domestic obligations:
U.S. treasuries
Standard and Poor's/ June 30, 2022
Moody's quality rating
fair value
$
3,824,614
Corporates
Total domestic corporates International obligations:
Corporates Total international corporates Total fixed income investments
AAA/Aaa AA/Aaa AA/Aa
AA/A A/A A/Baa
AA/A
214,293 171,562 187,347 187,549 273,124
91,824
1,125,699
93,118
93,118
$
5,043,431
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 issuer. At June 30, 2022, 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 total investments.
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 (in thousands):
(continued) 52
Financial Section
Notes to Financial Statements
June 30, 2022
Effective duration of fixed income assets
Fixed income type
Domestic obligations: U.S. treasuries Corporates
Fair value June 30, 2022
Percent of all fixed
income assets
Effective duration (years)
$ 3,824,614 1,125,699
75.8 %
4.9
22.3
5.0
International obligations: Corporates Total
93,118 $ 5,043,431
1.9
4.3
100.0 %
4.9
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 asset allocation and investment policies allow for active and passive investments in international securities. The System's Boardadopted 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. Foreign exchange instruments are used to protect the value of noncash investments from currency movements. The System's foreign exchange risk management policy does not quantify limitations on foreign currency-denominated investments. As of June 30, 2022, the System's exposure to foreign currency risk in U.S. Dollars, excluding the 401(k) and 457 plans, is highlighted in the table on the following page (in thousands):
(continued) 53
Financial Section
Notes to Financial Statements
June 30, 2022
International investment securities at fair value as of June 30, 2022
Currency
Australian Dollar Brazilian Real British Pound Sterling Canadian Dollar Chilean Peso Chinese Renminbi Yuan Colombian Peso Czech Koruna Danish Krone Euro Hong Kong Dollar Hungarian Forint Indian Rupee Indonesian Rupiah Israeli Shekel Japanese Yen Malaysian Ringgit Mexican Peso New Taiwan Dollar New Zealand Dollar Norwegian Krone Philippine Peso Polish Zloty Qatari Riyal Singapore Dollar South African Rand South Korean Won Swedish Krona Swiss Franc Thai Baht UAE Dirham
Cash/cash equivalents
$
--
--
--
--
--
--
--
--
--
--
158
--
33
--
--
--
--
--
--
--
--
1
--
--
--
--
--
--
--
--
--
Equities
43,778 16,203 108,377 34,787
2,455 5,933
773 1,532 13,790 274,194 235,264 1,074 71,261 5,232 3,064 184,233 9,052 7,200 39,276
737 2,288 3,295 3,331 3,483 19,966 12,965 63,719 39,578 37,609 13,690 9,576
Fixed income
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
Total holdings subject to foreign currency risk
192
1,267,715
--
Investment securities payable in U.S. dollars
--
1,307,439
93,118
Total international investment securities - at fair value $
192
2,575,154
93,118
Total
43,778 16,203 108,377 34,787
2,455 5,933
773 1,532 13,790 274,194 235,422 1,074 71,294 5,232 3,064 184,233 9,052 7,200 39,276
737 2,288 3,296 3,331 3,483 19,966 12,965 63,719 39,578 37,609 13,690 9,576
1,267,907
1,400,557
2,668,464
(continued) 54
Financial Section
Notes to Financial Statements
June 30, 2022
(5) Securities Lending Program
State statutes and ERS Board 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 securities lending programs or repurchase and reverse repurchase agreements that act as securities lending programs 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 net 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 approximately $2.3 billion at fair value at June 30, 2022. The collateral value was equal to 103.2% of the loaned securities' value at June 30, 2022. The System's lending collateral was held in the System's name by the tri-party custodian.
Loaned securities are included in the accompanying Combining Statement of Fiduciary Net Position since the System maintains ownership. The related collateral securities are not recorded as assets on the System's Combining Statement of Fiduciary Net Position, and a corresponding liability is not recorded, since the System is deemed not to have the ability to pledge or trade the collateral securities. In accordance with the criteria set forth in GASB Statement No. 28, Accounting and Financial Reporting for Securities Lending Transactions, 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, 2022 (dollars in thousands):
Capital assets: Land Building Equipment Computer software
Accumulated depreciation for: Building Equipment Computer software
Capital assets, net
Balance at June 30, 2021
Additions
Disposals
Balance at June 30, 2022
$
4,350
12
238
4,124
2,800
--
--
2,800
2,085
401
--
2,486
14,345
--
--
14,345
23,580
413
238
23,755
(1,190) (1,657) (14,345) (17,192)
$
6,388
(70) (180)
-- (250)
163
--
(1,260)
--
(1,837)
--
(14,345)
--
(17,442)
238
6,313
(continued) 55
Financial Section
Notes to Financial Statements
June 30, 2022
(7) Commitments
As of June 30, 2022, the System had committed to fund certain private equity partnerships for a total capital commitment of approximately $775.8 million. Of this amount, approximately $256.4 million remained unfunded and is not recorded on the System's Combining Statement of Fiduciary Net Position.
(8) Net Pension Liability (Asset) of Employers and Nonemployer - ERS, PSERS, LRS, GJRS, GMPF
The components of the net pension liability (asset) of the participating employers and nonemployer at June 30, 2022 were as follows (dollars in thousands):
Total pension liability Plan fiduciary net position
ERS $ 20,508,975
13,830,510
PSERS $ 1,263,626
1,026,232
LRS $ 26,697
36,031
GJRS $ 504,908
516,554
GMPF $ 57,458
34,888
Employers' and nonemployer net pension liability (asset) $ 6,678,465 $ 237,394 $(9,334) $(11,646) $22,570
Plan fiduciary net position as a percentage of the total pension liability
67.44 %
81.21 % 134.96 % 102.31 % 60.72 %
Actuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2021, using the following actuarial assumptions, applied to all periods included in the measurement:
Inflation Salary increases
Investment rate of return
Cost-of-living adjustment
ERS
2.5%
3.00 - 6.75%, including inflation
7.00%, net of pension plan investment expense, including inflation
1.05% annually
PSERS
2.5% n/a
7.00%, net of pension plan investment expense, including inflation
1.5% semiannually
LRS
2.5% n/a
7.00%, net of pension plan investment expense, including inflation
1.5% semiannually
GJRS
2.5%
3.75%, including inflation
7.00%, net of pension plan investment expense, including inflation
N/A
GMPF 2.5% n/a
7.00%, net of pension plan investment expense, including inflation N/A
Mortality rates are as follows: The Pub-2010 General Employee Table, with no adjustments, projected generationally with the MP-2019 scale is used for both males and females while in active service. The Pub-2010 Family of Tables projected generationally with the MP-2019 Scale and with further adjustments are used for post-retirement mortality assumptions as on the following tables:
ERS, LRS, GJRS, & GMPF*:
Participant Type
Membership Table
Service Retirees
General Healthy Annuitant
Disability Retirees
General Disabled
Beneficiaries
General Contingent Survivors
Set Forward (+)/ Setback (-) Male: +1; Female: +1 Male: -3; Female: 0 Male: +2; Female: +2
Adjustment To Rates Male: 105%; Female: 108% Male: 103%; Female: 106% Male: 106%; Female: 105%
*Only Service Retiree Participant Type applies to GMPF 56
(continued)
Financial Section
Notes to Financial Statements
June 30, 2022
PSERS:
Participant Type
Service Retirees
Membership Table
General Healthy Below-Median Annuitant
Disability Retirees
General Disabled
Beneficiaries
General Below-Median Contingent Survivors
Set Forward (+)/ Setback (-) Male: +2; Female: +2 Male: -3; Female: 0 Male: +2; Female: +2
Adjustment To Rates Male: 101%; Female: 103% Male: 103%; Female: 106% Male: 104%; Female: 99%
The actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period July 1, 2014 June 30, 2019. In the experience study, the long-term assumed investment rate of return of 7.00% and the assumed annual rate of inflation of 2.50% were recommended by the actuary and adopted by the Board.
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 small equities International developed market equities International emerging market equities Alternatives
Total
Target allocation 30.00 % 46.30 1.20 12.30 5.20 5.00
100.00 %
Long-term expected real rate of return* 0.20 % 9.40
13.40 9.40
11.40 10.50
* Rates shown are net of inflation
Discount rate: The discount rate used to measure the total pension liability was 7.00% for all defined benefit pension plans. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
(continued) 57
Financial Section
Notes to Financial Statements
June 30, 2022
Sensitivity of the net pension liability (asset) to changes in the discount rate: The following presents the net pension liability (asset), calculated using the discount rate of 7.00%, as well as what the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.00%) or 1percentage-point higher (8.00%) than the current rate (dollars in thousands):
Employers' and nonemployer net pension liability (asset)
Employees' Retirement System Public School Employment Retirement System Legislative Retirement System Georgia Judicial Retirement System Georgia Military Pension Fund
Current
1% Decrease discount rate 1% Increase
(6.00%)
(7.00%)
(8.00%)
8,890,273 383,919 (6,652) 36,971 30,840
6,678,465 237,394 (9,334) (11,646) 22,570
4,818,505 115,123 (11,600) (53,594) 15,912
Actuarial valuation date: June 30, 2021 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2022 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 OPEB Asset of Employers - SEAD-OPEB
The components of the net OPEB asset of the participating employers at June 30, 2022 were as follows (dollars in thousands):
Total OPEB liability Plan fiduciary net position
Employers' net OPEB asset Plan fiduciary net position as a percentage of the total OPEB liability
$
966,698
1,334,285
$
(367,587)
138.03 %
Actuarial assumptions: The total OPEB liability was determined by an actuarial valuation as of June 30, 2021, using the following actuarial assumptions, applied to all periods included in the measurement:
Inflation Salary increases:
ERS GJRS LRS Investment rate of return Healthcare cost trend rate
2.5%
3.00% - 6.75%, including inflation 3.75%, including inflation n/a 7.00%, net of OPEB plan investment expense, including inflation n/a
Mortality rates are as follows: The Pub-2010 General Employee Table, with no adjustments, projected generationally with the MP-2019 scale is used for both males and females while in active service. The Pub-2010 Family of Tables projected generationally with the MP-2019 Scale and with further adjustments are used for post-retirement mortality assumptions as noted on the following page:
(continued) 58
Financial Section
Notes to Financial Statements
June 30, 2022
Participant Type Service Retirees Disability Retirees
Beneficiaries
Membership Table General Healthy Annuitant
General Disabled
General Contingent Survivors
Set Forward (+)/ Setback (-)
Adjustment To Rates
Male: +1; Female: +1 Male: 105%; Female: 108%
Male: -3; Female: 0 Male: 103%; Female: 106%
Male: +2; Female: +2 Male: 106%; Female: 105%
The actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period July 1, 2014 June 30, 2019. In the experience study, the long-term assumed investment rate of return of 7.00% and the assumed annual rate of inflation of 2.50% were recommended by the actuary and adopted by the Board.
The long-term expected rate of return on OPEB 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 OPEB 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 small equities International developed market equities International emerging market equities Alternatives
Total
* Rates shown are net of inflation.
Target allocation 30.00 % 46.30 1.20 12.30 5.20 5.00
100.00 %
Long-term expected real rate of return* 0.20 % 9.40
13.40 9.40
11.40 10.50
Discount rate: The discount rate used to measure the total OPEB liability was 7.00%. 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 OPEB 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 OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.
Sensitivity of the net OPEB asset to changes in the discount rate: The table on the following page presents the net OPEB asset, calculated using the discount rate of 7.00%, as well as what the net OPEB asset would be if it were calculated using a discount rate that is 1-percentage-point lower (6.00%) or 1-percentage-point higher (8.00%) than the current rate (dollars in thousands):
(continued) 59
Financial Section
Notes to Financial Statements
June 30, 2022
Employers' net OPEB asset
1% Decrease (6.00%)
$(237,270)
Current discount
rate (7.00%)
(367,587)
1% Increase (8.00%)
(474,309)
Actuarial valuation date: June 30, 2021 is the actuarial valuation date upon which the total OPEB liability is based. An expected total OPEB liability is determined as of June 30, 2022 using standard roll-forward techniques for the actual total OPEB liability. 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) System Employees' Other Postemployment Benefits (OPEB)
Certain of the System's employees are members of the SEAD-OPEB and the Georgia State Employees Postretirement Benefit Fund. The notes to the financial statements that follow and required supplementary information on pages 78 and 79 are presented from the perspective of the System as an employer.
General Information about SEAD-OPEB
Plan description: SEAD-OPEB was created in 2007 by the Georgia General Assembly to amend Title 47 of the O.C.G.A., 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. The plan is a cost-sharing multiple-employer defined benefit other postemployment benefit plan as defined in GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. The SEAD-OPEB trust fund accumulates the premiums received from the aforementioned retirement plans, including interest earned on deposits and investments of such payments.
Benefits provided: The amount of insurance for a retiree with creditable service prior to April 1, 1964 is the full amount of insurance 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 in effect 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.
Contributions: Georgia law provides that employee contributions to the plan shall be in an amount established by the SEAD Board 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, 2022.
OPEB Asset, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows off Resources Related to OPEB SEAD-OPEB
At June 30, 2022, the System reported an asset of $1,426.3 thousand for its proportionate share of the net OPEB asset. The net OPEB asset was measured as of June 30, 2021. The total OPEB liability used to calculate the net OPEB asset was based on an actuarial valuation as of June 30, 2020. An expected total OPEB liability as of June 30, 2021 was determined using standard roll-forward techniques. The System's proportionate share of the net OPEB asset was based on actual member salaries reported to the SEAD-OPEB plan during the fiscal year ended June 30, 2021. At June 30, 2021, the employer's proportionate share was 0.231607%, which was an increase of 0.019784% from its proportionate share measured as of June 30, 2020. For the year ended June 30, 2022, the System recognized a reduction of OPEB expense of $277.8 thousand.
Actuarial assumptions: The total SEAD-OPEB liability as of June 30, 2021 was determined by an actuarial valuation as of June 30, 2020 using the actuarial assumptions on the following page, applied to all periods included in the measurement:
(continued) 60
Financial Section
Notes to Financial Statements
June 30, 2022
Inflation Salary increase Investment rate of return Healthcare cost trend rate
2.5% 3.00 - 6.75%, including inflation 7.00%, net of OPEB plan investment expense, including inflation n/a
Mortality rates are as follows: The Pub-2010 General Employee Table, with no adjustments, projected generationally with the MP-2019 scale is used for both males and females while in active service. The Pub-2010 Family of Tables projected generationally with the MP-2019 Scale and with further adjustments are used for post-retirement mortality assumptions as follows:
Participant Type Service Retirees Disability Retirees
Beneficiaries
Membership Table General Healthy Annuitant
General Disabled
General Contingent Survivors
Set Forward (+)/ Setback (-)
Adjustment To Rates
Male: +1; Female: +1 Male: 105%; Female: 108%
Male: -3; Female: 0 Male: 103%; Female: 106%
Male: +2; Female: +2 Male: 106%; Female: 105%
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period July 1, 2014 June 30, 2019.
The long-term expected rate of return on SEAD-OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of plan investment expense and the assumed rate of 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 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 small equities International developed market equities International emerging market equities Alternatives
Total
Target allocation
30.00 % 46.40
1.10 11.70
5.80 5.00
100.00 %
Long-term expected real rate of return*
(1.50) % 9.20 13.40 9.20 10.40 10.60
* Rates shown are net of inflation.
Discount rate: The discount rate used to measure the total SEAD-OPEB liability was 7.00%. 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 SEADOPEB plan's fiduciary net position was projected to be available to make all projected future benefit payments of
(continued) 61
Financial Section
Notes to Financial Statements
June 30, 2022
current plan members. Therefore, the long-term expected rate of return on SEAD-OPEB plan investments was applied to all periods of projected benefit payments to determine the total SEAD-OPEB liability.
Sensitivity of the System's proportionate share of the net SEAD-OPEB asset to changes in the discount rate: The following presents the System's proportionate share of the net SEAD-OPEB asset calculated using the discount rate of 7.00%, as well as what the System's proportionate share of the net SEAD-OPEB asset would be if it were calculated using a discount rate that is 1-percentage-point lower (6.00%) or 1-percentage-point higher (8.00%) than the current rate (dollars in thousands):
System's proportionate share of the net OPEB asset
1% Decrease (6.00%)
$(1,122)
Current discount
rate (7.00%)
(1,426)
1% Increase (8.00%)
(1,675)
SEAD-OPEB plan fiduciary net position: Detailed information about the SEAD-OPEB plan's fiduciary net position is available in the Annual Comprehensive Financial Report which is publicly available at https:// www.ers.ga.gov/post/annual-financial-reports.
General Information about the Georgia State Employees Postemployment Benefit Fund (State OPEB Fund)
Plan description: Employees of State of Georgia (State) organizations as defined in 45-18-25 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the State OPEB Fund - a cost-sharing multipleemployer defined benefit postemployment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 45 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board.
Benefits provided: The State OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for employees of State organizations (including technical colleges) and other entities authorized by law to contract with the Department of Community Health (DCH) for inclusion in the plan. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from ERS, LRS, GJRS, Teachers Retirement System (TRS) or PSERS. If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare-eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The State OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the State OPEB Fund is permitted.
Contributions: As established by the DCH Board of Trustees, the State OPEB Fund is funded on a pay-as-you-go basis, with additional contributions by the State as available and deemed necessary; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the State OPEB Fund from the System were $283.6 thousand for the year ended June 30, 2022. Active employees are not required to contribute to the State OPEB Fund.
OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to State OPEB Fund
At June 30, 2022, the System reported a liability of approximately $544.8 thousand for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2021. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2020. An expected total OPEB liability as of June 30, 2021 was determined using standard roll-forward techniques. The System's proportionate
(continued) 62
Financial Section
Notes to Financial Statements
June 30, 2022
share of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2021. At June 30, 2021, the System's proportionate share was 0.198205%, which was a increase of 0.006650% from its proportionate share measured as of June 30, 2020. For the year ended June 30, 2022, the System recognized a reduction in OPEB expense of $1,169.5 thousand.
Actuarial assumptions: The total OPEB liability as of June 30, 2021 was determined by an actuarial valuation as of June 30, 2020 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2021:
Inflation Salary increase Investment rate of return
Healthcare trend rate: Pre-Medicare Eligible Medicare Eligible
Ultimate trend rate: Pre-Medicare Eligible Medicare Eligible
Year of Ultimate trend rate Pre-Medicare Eligible Medicare Eligible
2.5% 3.00 - 6.75%, including inflation 7.00%, compounded annually, net of OPEB plan investment expense, including inflation
6.75% 5.13%
4.50% 4.50%
2029 2023
Mortality rates were based on the Pub-2010 General Employee Mortality Table for Males or Females, as appropriate, with no adjustments and with the MP-2019 Projection scale applied generationally as follows:
For ERS, JRS and LRS members: Post-retirement mortality rates for service retirements were based on the Pub-2010 General Healthy Annuitant Mortality Table (ages set forward one year and adjusted 105% for males and 108% for females) with the MP-2019 Projection scale applied generationally. Post-retirement mortality rates for disability retirements were based on the Pub-2010 General Disabled Mortality Table (ages set back three years for males and adjusted 103% for males and 106% for females) with the MP-2019 Projection scale applied generationally. Post-retirement mortality rates for beneficiaries were based on the Pub-2010 General Contingent Survivor Mortality Table (ages set forward two years and adjusted 106% for males and 108% for females) with the MP-2019 Projection scale applied generationally.
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of the most recent actuarial experience studies for the pension systems, which covered the five-year period ending June 30, 2019, and was adopted by the ERS Board on December 17, 2020.
The remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2020 valuation were based on a review of recent plan experience done concurrently with the June 30, 2020 valuation.
Projection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation.
The long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges
(continued) 63
Financial Section
Notes to Financial Statements
June 30, 2022
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:
Fixed income Equities
Total
Asset class
* Rates shown are net of inflation.
Target allocation 30.00 % 70.00
100.00 %
Long-term expected real rate of return*
0.14 % 9.20
Discount rate: The discount rate used to measure the total State OPEB liability was 7.00%, as compared with last year's discount rate of 7.06%. The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Based on those assumptions, the State OPEB fund'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 State OPEB plan investments was applied to all periods of projected benefit payments to determine the total State OPEB liability.
Sensitivity of the System's proportionate share of the net State OPEB liability to changes in the discount rate: The following presents the System's proportionate share of the net OPEB liability calculated using the discount rate of 7.00%, as well as what the System's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.00%) or 1-percentage-point higher (8.00%) than the current discount rate (dollars in thousands):
System's proportionate share of the net OPEB liability
1% Decrease (6.00%)
$959
Current discount
rate (7.00%)
545
1% Increase (8.00%)
187
Sensitivity of the System's proportionate share of the net State OPEB liability to changes in the healthcare cost trend rates: The following presents the System's proportionate share of the net OPEB liability, as well as what the System's proportionate share of the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates (dollars in thousands):
System's proportionate share of the net OPEB liability
1% Decrease
$127
Current healthcare cost trend
rate
545
1% Increase
1,034
State OPEB plan fiduciary net position: Detailed information about the State OPEB Benefit plan's fiduciary net position is available in the Annual Comprehensive Financial Report, which is publicly available at https:// sao.georgia.gov/swar/acfr.
(continued) 64
Financial Section
Notes to Financial Statements
June 30, 2022
Deferred Outflows of Resources and Deferred Inflows of Resources for SEAD-OPEB and State OPEB Fund
At June 30, 2022, the System reported deferred outflows of resources and deferred inflows of resources related to SEAD-OPEB and the State OPEB Fund from the following sources (dollars in thousands):
Deferred outflows of resources:
Change of assumptions
Net difference between projected and actual earnings on plan investments
Change in proportion and differences between the System's contributions and proportionate share of contributions
System's contributions subsequent to the measurement date
Total deferred outflows of resources
SEAD-OPEB State OPEB
plan
fund
$ --
28
--
--
--
229
--
284
$
--
541
Total 28 --
229 284 541
Deferred inflows of resources: Difference between expected and actual experience Change of assumptions Net difference between projected and actual earnings
on plan investments Change in proportion and differences between the
System's contributions and proportionate share of contributions
Total deferred inflows of resources
SEAD-OPEB State OPEB
plan
fund
$
4
44
476
1,467 574
95
33 $ 558
15 2,151
Total
1,471 619 571
47 2,709
SEAD-OPEB amounts reported as deferred outflows of resources and deferred inflows of resources related to SEAD-OPEB will be recognized in OPEB expense as noted as follows (dollars in thousands):
Year ended June 30: 2023 2024 2025 2026
($196) (120) (116) (126)
(continued) 65
Financial Section
Notes to Financial Statements
June 30, 2022
State OPEB Fund employer contributions subsequent to the measurement date of $283.6 thousand are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to State OPEB Fund will be recognized in OPEB expense as follows (dollars in thousands):
Year ended June 30: 2023 2024 2025 2026
($945) (485) (323) (141)
66
Financial Section
Required Supplementary Information (UNAUDITED)
Schedules of Employers' and Nonemployer Contributions - Defined Benefit Plans Year ended June 30, 2022 (In thousands)
Employees' Retirement System
Public School Employees Retirement System1
Legislative Retirement System2
Year ended
6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022
6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022
6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022
Actuarially determined contribution
(a)
$
358,376
428,982
517,220
595,124
624,623
650,073
649,209
643,857
615,967
619,723
24,829 27,160 28,461 28,580 26,277 29,276 30,263 32,496 30,264 32,491
-- -- -- -- -- -- -- -- -- --
Contributions in relation to the actuarially determined contribution
(b)
358,992 429,752 518,163 595,566 625,281 652,167 649,209 643,857 615,967 619,723
24,829 27,160 28,461 28,580 26,277 29,276 30,263 32,496 30,264 32,491
128 45 -- -- -- -- -- -- -- --
Contribution deficiency (excess) (a-b)
(616) (770) (943) (442) (658) (2,094)
-- -- -- --
-- -- -- -- -- -- -- -- -- --
(128) (45) -- -- -- -- -- -- -- --
Covered payroll
(c)
2,335,773 2,335,773 2,353,225 2,390,457 2,565,918 2,635,896 2,615,491 2,614,856 2,480,422 2,577,449
n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
3,867 3,850 3,764 3,875 3,830 3,844 3,833 3,798 3,371 4,024
Contributions as a
percentage of covered
payroll (b/c)
15.4 % 18.4 22.0 24.9 24.4 24.7 24.8 24.6 24.8 24.0
n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
3.3 1.2 n/a n/a n/a n/a n/a n/a n/a n/a
(continued) 67
Financial Section
Required Supplementary Information (UNAUDITED)
Schedules of Employers' and Nonemployer Contributions - Defined Benefit Plans Year ended June 30, 2022 (In thousands)
Georgia Judicial Retirement System
Georgia Military Pension Fund3
State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund
Year ended
6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022
6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022
6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022
Actuarially determined contribution
(a)
$
2,279
2,375
4,261
7,623
6,684
6,566
5,254
6,464
6,070
9,962
1,703 1,892 1,893 1,990 2,018 2,377 2,537 2,611 2,684 2,697
5,009 -- -- -- -- -- -- -- -- --
Contributions in relation to the actuarially determined contribution
(b)
2,279 2,375 4,261 7,623 6,684 6,566 5,254 6,464 6,070 9,962
1,703 1,892 1,893 1,990 2,018 2,377 2,537 2,611 2,684 2,697
5,009 -- -- -- -- -- -- -- -- --
Contribution deficiency (excess) (a-b)
-- -- -- -- -- -- -- -- -- --
-- -- -- -- -- -- -- -- -- --
-- -- -- -- -- -- -- -- -- --
Covered payroll
(c)
52,807 54,787 54,272 57,401 59,695 60,572 60,532 63,835 63,421 62,426
n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
1,855,185 n/a n/a n/a n/a n/a n/a n/a n/a n/a
Contributions as a
percentage of covered
payroll (b/c)
4.3 % 4.3 7.9 13.3 11.2 10.8 8.7 10.1 9.6 16.0
n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
0.3 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 No statistics regarding covered payroll are available. Contributions are not based upon members' salaries but are simply $4.00 per member, per month, 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. 2 The Georgia General Assembly made contributions in some years that were not required. 3 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.
68
Financial Section
Required Supplementary Information (UNAUDITED)
Schedules of Employers' and Nonemployer Net Pension/OPEB Liability (Asset) and Related Ratios Defined Benefit Plans June 30, 2022 (In thousands)
June 30, June 30, June 30, June 30, June 30, June 30, June 30, June 30, June 30,
2022
2021
2020
2019
2018
2017
2016
2015
2014
Employees' Retirement System: Total pension liability Plan fiduciary net position
$ 20,508,975 13,830,510
18,886,809 16,547,905
17,717,243 13,502,286
17,744,003 13,617,472
17,628,219 13,517,186
17,159,634 13,098,299
17,103,987 12,373,567
17,019,362 12,967,964
17,042,149 13,291,531
Employers' and nonemployer net pension liability
$ 6,678,465 2,338,904 4,214,957 4,126,531 4,111,033 4,061,335 4,730,420 4,051,398
3,750,618
Plan fiduciary net position as a percentage of the total pension liability Covered payroll
Employers' and nonemployer net pension liability as a percentage of covered payroll
67.44 % $ 2,577,449
259.11 %
87.62 % 2,480,422
94.29 %
76.21 % 2,614,856
161.19 %
76.74 % 2,615,491
157.77 %
76.68 % 2,635,896
155.96 %
76.33 % 2,565,918
158.28 %
72.34 % 2,390,457
197.89 %
76.20 % 2,353,225
172.16 %
77.99 % 2,335,773
160.57 %
Public School Employees Retirement System: Total pension liability Plan fiduciary net position
$ 1,263,626 1,026,232
1,224,416 1,199,970
1,134,724 958,248
1,107,495 941,587
1,072,165 914,138
1,013,163 868,134
Employers' and nonemployer net pension liability
$
Plan fiduciary net position as a percentage of the total pension liability Covered payroll
Employers' and nonemployer net pension liability as a percentage of covered payroll
237,394 81.21 % n/a
n/a
24,446 98.00 % n/a
n/a
176,476 84.45 % n/a
n/a
165,908 85.02 % n/a
n/a
158,027 85.26 % n/a
n/a
145,029 85.69 % n/a
n/a
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 asset
$
Plan fiduciary net position as a percentage of the total pension liability Covered payroll
Employer's net pension asset as a percentage of covered payroll
26,697 36,031 (9,334) 134.96 %
4,024
(231.96)%
26,695 42,713 (16,018) 160.00 %
3,371
(475.17)%
26,081 34,568 (8,487) 132.54 %
3,798
(223.46)%
26,166 34,540 (8,374) 132.00 %
n/a
n/a
26,304 34,189 (7,885) 129.98 %
n/a
n/a
25,898 32,981 (7,083) 127.35 %
n/a
n/a
26,142 30,975 (4,833) 118.49 %
n/a
n/a
25,271 32,359 (7,088) 128.05 %
n/a
n/a
25,216 32,794 (7,578) 130.05 %
n/a
n/a
Georgia Judicial Retirement System: Total pension liability Plan fiduciary net position
$ 504,908 516,554
Employers' and nonemployer net pension asset
$
Plan fiduciary net position as a percentage of the total pension liability
Covered payroll
$
Employers' and nonemployer net pension asset as a percentage of covered payroll
(11,646) 102.31 % 62,426
(18.66)%
485,387 605,426 (120,039)
124.73 % 63,421
(189.27)%
455,656 485,930 (30,274)
106.64 % 63,835
(47.43)%
440,041 479,372 (39,331)
108.94 % 60,532
(64.98)%
428,624 466,657 (38,033)
108.87 % 60,572
(62.79)%
394,736 441,182 (46,446)
111.77 % 59,695
(77.81)%
368,669 403,011 (34,342)
109.32 % 57,401
(59.83)%
357,081 404,852 (47,771)
113.38 % 54,272
(88.02)%
350,443 400,790 (50,347)
114.37 % 54,787
(91.90)%
69
(continued)
Financial Section
Required Supplementary Information (UNAUDITED)
Schedules of Employers' and Nonemployer Net Pension/OPEB Liability (Asset) and Related Ratios Defined Benefit Plans June 30, 2022 (In thousands)
June 30, June 30, June 30, June 30, June 30, June 30, June 30, June 30, June 30,
2022
2021
2020
2019
2018
2017
2016
2015
2014
Georgia Military Pension Fund: Total pension liability Plan fiduciary net position
Employers' net pension liability
Plan fiduciary net position as a percentage of the total pension liability Covered payroll Employers' net pension liability as a percentage of
covered payroll
$ 57,458 34,888
$ 22,570 60.72 % n/a
n/a
54,739 38,677 16,062
70.66 % n/a
n/a
47,883 28,967 18,916
60.50 % n/a
n/a
45,639 26,417 19,222
57.88 % n/a
n/a
43,204 23,653 19,551
54.75 % n/a
n/a
40,085 20,711 19,374
51.67 % n/a
n/a
36,950 17,717 19,233
47.95 % n/a
n/a
33,343 16,712 16,631
50.12 % n/a
n/a
31,511 15,251 16,260
48.40 % n/a
n/a
State Employees' Assurance Department - Retired and Vested Inactive Members Trust Fund:
Total OPEB liability Plan fiduciary net position
Employer's net OPEB asset
Plan fiduciary net position as a percentage of the total OPEB liability Covered payroll
Employers' net OPEB asset as a percentage of covered payroll
$ 966,698 1,334,285
950,995 1,566,821
972,700 1,256,718
951,091 1,233,856
918,816 1,189,462
861,346 1,121,251
$ (367,587)
(615,826)
(284,018)
(282,765)
(270,646)
(259,905)
138.03 %
164.76 %
129.20 %
129.73 %
129.46 %
130.17 %
$ 982,303 1,030,717 1,135,433 1,211,274 1,328,485 1,383,860
(37.42)%
(59.75)%
(25.01)%
(23.34)%
(20.37)%
(18.78)%
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.
-- -- -- -- % --
-- %
-- -- -- -- % --
-- %
-- -- -- -- % --
-- %
70
Financial Section
Required Supplementary Information (UNAUDITED) Schedules of Changes in Employers' and Nonemployer Net Pension/OPEB Liability (Asset) Defined Benefit Plans
June 30, 2022 (In thousands)
June 30, 2022
June 30, 2021
June 30, 2020
June 30, 2019
June 30, 2018
June 30, 2017
June 30, 2016
June 30, 2015
June 30, 2014
Employee's Retirement System:
Total pension liability:
Service cost
$
Interest
Benefit changes
Differences between expected and actual experience
Changes of assumptions
Benefit payments
Refunds of contributions
142,949 1,269,224
67,351 (107,167) 1,759,895 (1,502,904)
(7,182)
Net change in total pension liability Total pension liability-beginning
1,622,166 18,886,809
Total pension liability-end (a)
20,508,975
Plan fiduciary net position: Contributions-employer Contributions-nonemployer Contributions-member Administrative expense allotment Net investment income (loss) Benefit payments Administrative expense Refunds of contributions Other1
611,410 8,313
36,130 10
(1,855,595) (1,502,904)
(7,577) (7,182)
--
Net change in plan fiduciary net position Plan fiduciary net position-beginning
(2,717,395) 16,547,905
Plan fiduciary net position-end (b)
13,830,510
Net pension liability-end (a)-(b)
$ 6,678,465
129,500 1,240,748
-- 86,061 1,154,636 (1,434,775) (6,604)
1,169,566 17,717,243
18,886,809
606,919 9,048
35,027 10
3,843,581 (1,434,775)
(7,587) (6,604)
--
3,045,619 13,502,286
16,547,905
2,338,904
132,004 1,240,887
65,702 25,736
-- (1,484,445)
(6,644)
(26,760) 17,744,003
17,717,243
634,108 9,749
35,837 10
703,840 (1,484,445)
(7,641) (6,644)
--
(115,186) 13,617,472
13,502,286
4,214,957
135,679 1,233,882
42,097 155,573
-- (1,443,756)
(7,691)
115,784 17,628,219
17,744,003
638,989 10,220 36,252 10
873,404 (1,443,756)
(7,142) (7,691)
--
100,286 13,517,186
13,617,472
4,126,531
129,294 1,233,689
31,097 180,655 314,733 (1,413,298)
(7,585)
468,585 17,159,634
17,628,219
639,302 12,865 37,130 10
1,166,013 (1,413,298)
(8,056) (7,585) (7,494)
418,887 13,098,299
13,517,186
4,111,033
125,910 1,230,175
30,563 72,315
-- (1,394,283)
(9,033)
55,647 17,103,987
17,159,634
613,201 12,080 35,863 10
1,475,626 (1,394,283)
(8,732) (9,033)
--
724,732 12,373,567
13,098,299
4,061,335
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)
--
(323,567) 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
1 The System is a participating employer in the Georgia State Employees Postemployment Benefit Fund and the State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund. Pursuant to the requirements of GASB Statement No. 75, the fiscal year 2018 beginning Fiduciary Net Position was restated by $7,494,507. The restatement of net position was made for reporting purposes to reflect the impact of recording the initial deferred outflows of resources, net OPEB liability, and net OPEB asset. For actuarial purposes, this adjustment was recognized in fiscal year 2018 and beginning fiduciary net position was not restated.
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.
(continued) 71
Financial Section
Required Supplementary Information (UNAUDITED) Schedules of Changes in Employers' and Nonemployer Net Pension/OPEB Liability (Asset) Defined Benefit Plans
June 30, 2022 (In thousands)
June 30, 2022
June 30, 2021
June 30, 2020
June 30, 2019
June 30, 2018
June 30, 2017
June 30, 2016
June 30, 2015
June 30, 2014
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-end (a)
Plan fiduciary net position: Contributions-employer Contributions-member Net investment income (loss) Benefit payments Administrative expense Refunds of contributions
Net change in plan fiduciary net position Plan fiduciary net position-beginning
Plan fiduciary net position-end (b)
Net pension liability-end (a)-(b)
$
14,109 83,301 16,044 (5,427)
-- (68,203)
(614) 39,210 1,224,416 1,263,626
32,491 2,256
(138,145) (68,203) (1,523) (614)
(173,738) 1,199,970 1,026,232
237,394
14,332 80,388
-- (12,739) 74,759 (66,415)
(633) 89,692 1,134,724 1,224,416
30,264 2,222
277,705 (66,415)
(1,421) (633)
241,722 958,248 1,199,970
24,446
14,017 78,414 13,680 (12,220)
-- (66,090)
(572) 27,229 1,107,495 1,134,724
32,496 2,338
49,913 (66,090)
(1,424) (572)
16,661 941,587 958,248 176,476
13,762 75,923 18,050 (8,159)
-- (63,637)
(609) 35,330 1,072,165 1,107,495
30,263 2,256
60,553 (63,637)
(1,377) (609)
27,449 914,138 941,587 165,908
13,180 73,643 17,289 (3,943) 21,354 (61,820)
(701) 59,002 1,013,163 1,072,165
29,276 2,162
78,418 (61,820)
(1,331) (701)
46,004 868,134 914,138 158,027
12,788 72,157
-- (3,665)
-- (59,378)
(1,031) 20,871 992,292 1,013,163
26,277 2,084
97,715 (59,378)
(1,308) (1,031) 64,359 803,775 868,134 145,029
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
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.
(continued) 72
Financial Section
Required Supplementary Information (UNAUDITED) Schedules of Changes in Employers' and Nonemployer Net Pension/OPEB Liability (Asset) Defined Benefit Plans
June 30, 2022 (In thousands)
June 30, 2022
June 30, 2021
June 30, 2020
June 30, 2019
June 30, 2018
June 30, 2017
June 30, 2016
June 30, 2015
June 30, 2014
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-end (a)
Plan fiduciary net position: Contributions-employer Contributions-member Net investment income (loss) Benefit payments Administrative expense Refunds of contributions
Net change in plan fiduciary net position Plan fiduciary net position-beginning
Plan fiduciary net position-end (b)
Net pension asset-end (a)-(b)
$
461 1,804
--
(412) --
(1,818) (33) 2
26,695 26,697
-- 344 (4,848) (1,818) (327) (33)
(6,682) 42,713 36,031 (9,334)
366 1,840
--
(643) 813 (1,720) (42) 614 26,081 26,695
-- 290 9,928 (1,720) (311) (42)
8,145 34,568 42,713 (16,018)
372 1,844
--
(485) --
(1,795) (21) (85)
26,166 26,081
-- 325 1,824 (1,795) (305) (21)
28 34,540 34,568 (8,487)
366 1,850
--
(428) --
(1,856) (70)
(138) 26,304 26,166
-- 339 2,228 (1,856) (290) (70)
351 34,189 34,540 (8,374)
359 1,875
--
(481) 447 (1,772) (22) 406 25,898 26,304
-- 323 2,962 (1,772) (283) (22)
1,208 32,981 34,189 (7,885)
357 1,892
--
(655) --
(1,763) (75)
(244) 26,142 25,898
-- 327 3,741 (1,763) (224) (75)
2,006 30,975 32,981 (7,083)
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)
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.
(continued) 73
Financial Section
Required Supplementary Information (UNAUDITED) Schedules of Changes in Employers' and Nonemployer Net Pension/OPEB Liability (Asset) Defined Benefit Plans
June 30, 2022 (In thousands)
June 30, 2022
June 30, 2021
June 30, 2020
June 30, 2019
June 30, 2018
June 30, 2017
June 30, 2016
June 30, 2015
June 30, 2014
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-end (a)
Plan fiduciary net position: Contributions-employer Contributions-nonemployer Contributions-member Net investment income (loss) Benefit payments Administrative expense Refunds of contributions
Net change in plan fiduciary net position Plan fiduciary net position-beginning
Plan fiduciary net position-end (b)
Net pension asset-end (a)-(b)
$
14,428 32,785
760
5,621 --
(34,050) (23)
19,521 485,387 504,908
7,585 2,377 5,466 (69,334) (34,050) (893)
(23) (88,872) 605,426 516,554 (11,646)
13,494 32,131
--
(2,712) 17,839 (30,958)
(63) 29,731 455,656 485,387
3,830 2,240 5,190 140,103 (30,958) (846)
(63) 119,496 485,930 605,426 (120,039)
13,375 31,047
693
(24) -- (29,263) (213) 15,615 440,041 455,656
4,022 2,442 5,005 25,414 (29,263) (849) (213) 6,558 479,372 485,930 (30,274)
13,350 30,267
1,065
(5,250) --
(27,462) (553)
11,417 428,624 440,041
3,117 2,137 5,469 30,827 (27,462) (820) (553) 12,715 466,657 479,372 (39,331)
13,019 28,666
3,442
6,379 7,466 (24,934) (150) 33,888 394,736 428,624
4,725 1,841 4,910 39,877 (24,934) (794) (150) 25,475 441,182 466,657 (38,033)
12,514 26,826
3,419
5,258 --
(21,784) (166)
26,067 368,669 394,736
4,081 2,603 4,906 49,259 (21,784) (728) (166) 38,171 403,011 441,182 (46,446)
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)
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.
(continued) 74
Financial Section
Required Supplementary Information (UNAUDITED) Schedules of Changes in Employers' and Nonemployer Net Pension/OPEB Liability (Asset) Defined Benefit Plans
June 30, 2022 (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
Net change in total pension liability Total pension liability-beginning
Total pension liability-end (a)
Plan fiduciary net position: Contributions-employer Contributions-member Net investment income (loss) Benefit payments Administrative expense
Net change in plan fiduciary net position Plan fiduciary net position-beginning
Plan fiduciary net position-end (b)
Net pension liability-end (a)-(b)
June 30, June 30, June 30,
2022
2021
2020
June 30, 2019
June 30, 2018
June 30, 2017
June 30, 2016
June 30, 2015
June 30, 2014
$
155
3,778
--
313 --
(1,527)
2,719 54,739
57,458
2,697 --
(4,693) (1,527)
(266)
(3,789) 38,677
34,888
$
22,570
106 3,443
--
142 4,593 (1,428) 6,856 47,883 54,739
2,684 --
8,709 (1,428)
(255) 9,710 28,967 38,677 16,062
95 3,284
--
162 --
(1,297) 2,244 45,639 47,883
2,611 --
1,485 (1,297)
(249) 2,550 26,417 28,967 18,916
97 3,109
--
449 --
(1,220) 2,435 43,204 45,639
2,537 --
1,683 (1,220)
(236) 2,764 23,653 26,417 19,222
84 2,964
--
116 1,093 (1,138) 3,119 40,085 43,204
2,377 --
1,928 (1,138)
(225) 2,942 20,711 23,653 19,551
89 2,732
--
1,356 --
(1,042) 3,135 36,950 40,085
2,018 --
2,262 (1,042)
(244) 2,994 17,717 20,711 19,374
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 schedule and accompanying independent auditors' report.
(continued) 75
Financial Section
Required Supplementary Information (UNAUDITED) Schedules of Changes in Employers' and Nonemployer Net Pension/OPEB Liability (Asset) Defined Benefit Plans
June 30, 2022 (In thousands)
June 30, 2022
June 30, 2021
June 30, 2020
June 30, 2019
June 30, 2018
June 30, 2017
Statement Employees' Assurance Department Retired and Vested Inactive Members Trust Fund:
Total OPEB Liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Death benefits Refunds of contributions
Net change in total OPEB liability Total OPEB liability-beginning
Total OPEB liability-end
Plan fiduciary net position: Contributions - employer Insurance premiums - member Net investment income (loss) Death benefits Administrative expense Other
Net change in plan fiduciary net position Plan fiduciary net position-beginning
Plan fiduciary net position-end (b)
Net OPEB asset-end (a)-(b)
$
2,551
64,643
--
3,562
--
(55,053)
--
15,703 950,995
966,698
-- 2,641 (179,369) (55,053) (755)
--
(232,536) 1,566,821
1,334,285
$
(367,587)
2,957 69,011
-- (2,342) (36,651) (54,680)
-- (21,705) 972,700 950,995
-- 2,817 362,663 (54,680) (697)
-- 310,103 1,256,718 1,566,821 (615,826)
3,237 67,796
-- (4,670)
-- (44,754)
-- 21,609 951,091 972,700
-- 3,088 65,248 (44,754) (720)
-- 22,862 1,233,856 1,256,718 (284,018)
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.
3,617 65,708
-- 366
-- (37,416)
-- 32,275 918,816 951,091
-- 3,328 79,193 (37,416) (716)
5 44,394 1,189,462 1,233,856 (282,765)
3,695 63,242
-- 4,697 22,085 (36,249)
-- 57,470 861,346 918,816
-- 3,599 101,542 (36,249) (681)
-- 68,211 1,121,251 1,189,462 (270,646)
3,959 61,076
-- -- -- (36,058) -- 28,977 832,369 861,346
1 3,793 125,550 (36,058) (576)
-- 92,710 1,028,541 1,121,251 (259,905)
76
Financial Section
Required Supplementary Information (UNAUDITED)
Schedule of Investment Returns Year ended June 30, 2022
Pooled Investment Fund:
Annual money-weighted rate of return, net of investment expense
2022
2021
2020
2019
(18.7)% 19.4% (3.6)% (1.8)%
2018 0.6%
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.
2017 2.9%
2016
2015
(7.2)% (5.3)%
2014 6.0%
77
Financial Section
Required Supplementary Information (UNAUDITED) Schedules of the System's Proportionate Share of the Net OPEB Liability (Asset)
Year ended June 30, 2022 (In thousands)
June 30, 2022
June 30, 2021
June 30, 2020
June 30, 2019
June 30, 2018
SEAD-OPEB: System's proportion of the net OPEB asset System's proportionate share of the net OPEB asset System's covered payroll
0.231607 % $ (1,426)
2,511
0.211823 %
$
(602)
2,524
0.201267 %
0.200064 %
$
(569)
$
(541)
2,567
2,770
0.192864 %
$
(501)
2,809
System's proportionate share of the net OPEB asset as a percentage of its covered payroll
(56.81) %
(23.84) %
(22.17) %
(19.55) %
(17.85) %
Plan fiduciary net position as a percentage of the total OPEB asset
164.76 %
129.2 %
129.73 %
129.46 %
130.17 %
State OPEB Fund: System's proportion of the net OPEB liability System's proportionate share of the net OPEB liability System's covered payroll
0.198205 %
$
545
5,713
0.191555 % $ 2,156
5,700
0.189291 %
0.181584 %
$
2,350
$ 4,749
5,578
5,415
0.185830 % $ 7,571
5,265
System's proportionate share of the net OPEB liability as a percentage of its covered payroll
9.53 %
37.82 %
42.13 %
87.71 %
143.81 %
System's fiduciary net position as a percentage of the total OPEB liability
87.58 %
59.71 %
56.57 %
31.48 %
17.34 %
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.
78
Financial Section
Required Supplementary Information (UNAUDITED) Schedules of the System's Contributions to OPEB Plans
Year ended June 30, 2022 (In thousands)
June 30, 2022
June 30, 2021
June 30, 2020
June 30, 2019
June 30, 2018
SEAD-OPEB:
Contractually required contribution*
$
--
Contributions in relation to the contractually required contribution
--
Contribution deficiency (excess)
--
System's covered payroll
2,607
Contributions as a percentage of a covered payroll
-- %
$
--
--
--
2,511
-- %
$
--
--
--
2,524
-- %
$
--
--
--
2,567
-- %
$
--
--
--
2,770
-- %
State OPEB Fund:
Contractually required contribution
$ 284
Contributions in relation to the contractually required contribution
284
Contribution deficiency (excess)
--
System's covered payroll
5,929
Contributions as a percentage of a covered payroll
4.78 %
$ 301 301 --
5,713 5.26 %
$ 288 288 --
5,700 5.05 %
$ 1,012 1,012 -- 5,578 18.15 %
$ 905 905 --
5,415 16.71 %
*Employer contributions are not currently required for the SEAD-OPEB plan. 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.
79
Financial Section
Notes to Required Supplementary Information (UNAUDITED)
June 30, 2022
Required Supplementary Information Schedules for the System as the Plan:
(1) Schedule of Employers' and Nonemployer Contributions Defined Benefit Plans
This schedule presents the required contributions and the percent of required contributions actually contributed.
(2) Schedule of Employers' and Nonemployer Net Pension/OPEB Liability (Asset) and Related Ratios Defined Benefit Plans
The components of the net pension/OPEB liability (asset) as of the fiscal year end and the fiduciary net position as a percentage of the total pension/OPEB liability (asset) as of that date are presented in this schedule. This trend information will be accumulated to display a 10-year presentation.
(3) Schedule of Changes in Employers' and Nonemployer Net Pension/OPEB Liability (Asset) Defined Benefit Plans
Net pension/OPEB liability (asset), which is measured as total pension/OPEB liability less the amount of the fiduciary net position, is presented in this schedule. This trend information will be accumulated to display a 10year 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 10-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.
(a) Employees' Retirement System
Changes of benefit terms A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2016. A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2017. Two one-time 2% payments were granted to certain retirees and beneficiaries effective July 2018 and January 2019. Two one-time 3% payments were granted to certain retirees and beneficiaries effective July 2019 and January 2020. Two one-time 3% payments were granted to certain retirees and beneficiaries effective July 2021 and January 2022.
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, disability, withdrawal, and salary increases. Subsequent to the June 30, 2016 actuarial valuation, the ERS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the ERS Board's new funding policy, the assumed investment rate
(continued) 80
Financial Section
Notes to Required Supplementary Information (UNAUDITED)
June 30, 2022
of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date, and remained unchanged for June 30, 2019 and June 30, 2020 measurement dates. On December 17, 2020, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System based on the experience study prepared for the five-year period ending June 30, 2019. Primary among the changes were the updates to rates of mortality, retirement, withdrawal, and salary increases. This also included a change to the long-term assumed investment rate of return to 7.00%. Therefore, a change in assumptions due to the reduction in the assumed investment rate of return from 7.30% to 7.00%, are reflected, along with the assumptions changes due to the experience study, in the calculation of the June 30, 2021 ERS Total Pension Liability. On April 21, 2022, the Board adopted a new funding policy superseding and replacing the funding policy adopted March 15, 2018. This new funding policy, in part, provides that the Actuarial Accrued Liability and Normal Cost of the System will include a prefunded variable COLA for eligible retirees and beneficiaries of the System. Under the new policy, future COLAs are provided through a profit-sharing mechanism using the System's asset performance. After studying the parameters of this new policy, the assumption for future COLAs was set at 1.05%. Previously, no future COLAs were assumed.
(b) Public School Employees' Retirement System
Changes of benefit terms
A 2% COLA was granted to certain retirees and beneficiaries effective July 2016. The monthly benefit accrual rate was increased from $14.75 to $15.00 per year of creditable service
effective July 1, 2017. A 2% COLA was granted to certain retirees and beneficiaries effective July 2017. The monthly benefit accrual rate was increased from $15.00 to $15.25 per year of creditable service
effective July 1, 2018. A 2% COLA was granted to certain retirees and beneficiaries effective July 2018. The monthly benefit accrual rate was increased from $15.25 to $15.50 per year of creditable service
effective July 1, 2019. Two 1.5% COLAs were granted to certain retirees and beneficiaries effective July 2019 and January
2020. The monthly benefit accrual rate was increased from $15.50 to $15.75 per year of credible service
effective July 1, 2021 for members retiring on or after August 1, 2012. Two 1.5% COLAs were granted to certain retirees and beneficiaries effective July 2021 and January
2022.
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. Subsequent to the June 30, 2016 actuarial valuation, the PSERS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the PSERS Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date, and remained unchanged for June 30, 2019 and June 30, 2020 measurement dates. On December 17, 2020, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System based on the experience study prepared for the five-year period ending June 30, 2019. Primary among the changes were the updates to rates of mortality, retirement, withdrawal, and salary increases. This also included a change to the long-term assumed investment rate of return to 7.00%. Therefore, a change in assumptions due to the reduction in the assumed investment rate of return from 7.30% to 7.00%, are reflected, along with the assumptions changes due to the experience study, in the calculation of the June 30, 2021 PSERS Total Pension Liability.
(continued) 81
Financial Section
Notes to Required Supplementary Information (UNAUDITED)
June 30, 2022
(c) Legislative Retirement System
Changes of benefit terms
Two one-time 3% payments were granted to certain retirees and beneficiaries effective July 2019 and January 2020.
Two one-time 3% payments were granted to certain retirees and beneficiaries effective July 2021 and January 2022.
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. Subsequent to the June 30, 2016 actuarial valuation, the LRS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the LRS Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date, and remained unchanged for June 30, 2019 and June 30, 2020 measurement dates. On December 17, 2020, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System based on the experience study prepared for the five-year period ending June 30, 2019. Primary among the changes were the updates to rates of mortality, retirement, withdrawal, and salary increases. This also included a change to the long-term assumed investment rate of return to 7.00%. Therefore, a change in assumptions due to the reduction in the assumed investment rate of return from 7.30% to 7.00%, are reflected, along with the assumptions changes due to the experience study, in the calculation of the June 30, 2021 LRS Total Pension Liability.
(d) Georgia Judicial Retirement System
Changes of benefit terms
A 2% cost-of-living adjustment was granted to certain retirees and beneficiaries effective July 1, 2016.
A 2% cost-of-living adjustment was granted to certain retirees and beneficiaries effective July 1, 2017.
Two one-time 2% payments were granted to certain retirees and beneficiaries effective July 2018 and January 2019.
Two one-time 3% payments were granted to certain retirees and beneficiaries effective July 2019 and January 2020.
Two one-time 3% payments were granted to certain retirees and beneficiaries effective July 2021 and January 2022.
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, disability, withdrawal, and salary increases. Subsequent to the June 30, 2016 actuarial valuation, the GJRS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the GJRS Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date, and remained unchanged for June 30, 2019 and June 30, 2020 measurement dates. On December 17, 2020, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System based on the experience study prepared for the five-year period ending June 30, 2019. Primary among the changes were the updates to rates of mortality, retirement, withdrawal, and salary increases. This also included a change to the long-term assumed investment rate of return to 7.00%. Therefore, a change in
(continued) 82
Financial Section
Notes to Required Supplementary Information (UNAUDITED)
June 30, 2022
assumptions due to the reduction in the assumed investment rate of return from 7.30% to 7.00%, are reflected, along with the assumptions changes due to the experience study, in the calculation of the June 30, 2021 GJRS Total Pension Liability.
(e) 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. Subsequent to the June 30, 2016 actuarial valuation, the GMPF Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the GMPF Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date, and remained unchanged for June 30, 2019 and June 30, 2020 measurement dates. On December 17, 2020, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System based on the experience study prepared for the five-year period ending June 30, 2019. Primary among the changes were the updates to rates of mortality, retirement, withdrawal, and salary increases. This also included a change to the long-term assumed investment rate of return to 7.00%. Therefore, a change in assumptions due to the reduction in the assumed investment rate of return from 7.30% to 7.00%, are reflected, along with the assumptions changes due to the experience study, in the calculation of the June 30, 2021 GMPF Total Pension Liability.
(f) State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEADOPEB) as a plan
Changes of benefit terms none
Changes of assumptions Subsequent to the June 30, 2016 actuarial valuation, the SEAD Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the SEAD Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date, and remained unchanged for June 30, 2019 and June 30, 2020 measurement dates. On December 17, 2020, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System based on the experience study prepared for the fiveyear period ending June 30, 2019. Primary among the changes were the updates to rates of mortality, retirement, withdrawal, and salary increases. This also included a change to the long-term assumed investment rate of return to 7.00%. Therefore, a change in assumptions due to the reduction in the assumed investment rate of return from 7.30% to 7.00%, are reflected, along with the assumptions changes due to the experience study, in the calculation of the June 30, 2021 SEAD Total OPEB Liability.
(continued) 83
Financial Section
Notes to Required Supplementary Information (UNAUDITED)
June 30, 2022
The following actuarial methods and assumptions were used to determine the most recent contribution rates reported in the schedules of employer and nonemployer contributions calculated as of June 30, three years prior to the end of the first calendar year in which contributions are reported:
ERS
PSERS
LRS
Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases
Investment rate of return
Cost of living adjustments
Entry age
Level dollar, closed
15.3 years
Five-year smoothed fair
2.75%
3.25 to 7.00%, including inflation
7.30% net of pension plan investment expense, including inflation
None
Entry age Level dollar, closed 19.6 years Five-year smoothed fair 2.75% n/a
7.30% net of pension plan investment expense, including inflation 1.50% Semi-annually
Entry age Level dollar, open Infinite Five-year smoothed fair 2.75% n/a
7.30% net of pension plan investment expense, including inflation 1.50% Semi-annually
Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases
Investment rate of return
Cost of living adjustments
GJRS Entry age Level percent of pay, closed 14.3 years Five-year smoothed fair 2.75% 4.5%, including inflation
GMPF Entry age Level dollar, closed 14.6 years Five-year smoothed fair 2.75% n/a
7.30% net of pension plan investment expense, including inflation
None
7.30% net of pension plan investment expense, including inflation
None
Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases
ERS JRS LRS Investment rate of return
Cost of living adjustments
SEAD - OPEB Entry age Level dollar, open Infinite Fair Value of Assets 2.75%
3.25-7.00%, including inflation 4.5%, including inflation n/a 7.30% net of pension plan investment expense, including inflation None
(continued) 84
Financial Section
Notes to Required Supplementary Information (UNAUDITED)
June 30, 2022
Required Supplementary Information Schedules for the System as a participating employer:
(1) Schedules of the System's Proportionate Share of the Net OPEB Liability (Asset)
The information in this schedule presents historical information related to the net OPEB liability (asset) that is recognized by the System in the current period financial statements. This trend information will be accumulated to display a 10-year presentation.
(2) Schedules of the System's Contributions to OPEB Plans This schedule presents the required contributions and the percent of required contributions actually contributed.
(3) 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.
(a) SEAD-OPEB Changes of benefit terms none
Changes of assumptions On December 17, 2015, the SEAD Board adopted recommended changes to the economic and demographic assumptions utilized by the Plan. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for June 30, 2017 actuarial valuation and further reduced from 7.40% to 7.30% for the June 30, 2018 actuarial valuation.
On December 17, 2020, the Board adopted recommended changes to the economic and demographic assumptions utilized by the Systems based on the experience study prepared for the five-year period ending June 30, 2019. Primary among the changes were the updates to rates of mortality, retirement, withdrawal, and salary increases. This also included a change to the long-term assumed investment rate of return to 7.00%. Therefore, a change in assumptions due to the reduction in the assumed investment rate of return from 7.30% to 7.00%, are reflected, along with the assumptions changes due to the experience study, in the calculation of the June 30, 2021 SEAD Total OPEB Liability.
(b) State OPEB Fund Changes of benefit terms none
Changes of assumptions The June 30, 2017 actuarial valuation was revised, for various factors, including the methodology used to determine how employees and retirees were assigned to each of the OPEB Funds and anticipated participation percentages. Current and former employees of State organizations (including technical colleges, community service boards and public health departments) are now assigned to the State OPEB fund based on their last employer payroll location: irrespective of retirement affiliation. In the June 30, 2019 valuation the inflation assumption was lowered from 2.75% to 2.50% in anticipation of the upcoming ERS Experience Study. Additionally, decremental assumptions were changed to reflect the Teachers Retirement Systems experience study. Approximately 6.0% of employees are members of the Teachers Retirement System. In the June 30, 2020 valuation decremental assumptions were changed to reflect the Employees Retirement Systems experience study. The discount rate was updated from 3.09% as of June 30, 2016, to 3.60% as of June 30, 2017, to 5.22% as of June 30, 2018, to 7.30% as of June 30, 2019, to 7.06% as of June 30, 2020, and to 7.00% as of June 30, 2021.
85
Financial Section
Additional Information
Schedule of Administrative Expenses - Contributions and Expenses Year ended June 30, 2022 (In thousands)
Contributions from fiduciary funds: 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 Georgia Defined Contribution Plan 401(k) Plan 457 Plan State Employees' Assurance Department - OPEB Total fiduciary funds
Contributions from proprietary fund: State Employees' Assurance Department Active Members 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 Audit 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.
$
7,577
1,523
327
893
266
2
2
987
3,437
585
755
16,354
84 16,438
6,242 1,137
452 293
44 8,168
164 12
115 13
304
792 1,088 3,455
388 52
324 32
6,131
635
763 63 14 5
250 103
2 1,200 16,438
$
--
86
(continued)
Financial Section
Additional Information
Schedule of Investment Expenses Year ended June 30, 2022 (In thousands)
Investment advisory and custodial fees Miscellaneous
$
9,848
14,044
Total investment expenses*
$
23,892
* Total investment expenses are reported on the Combining Statement of Changes in Fiduciary Net Position and are included with the elements of "Investment income (loss)" on page 29 under the title "Less investment expenses" and the Statement of Revenues, Expenses, and Changes in Net Position - State Employees' Assurance Department Active Members Fund and are included with the elements of "Nonoperating revenues (expenses)" on page 31 under the title "Less investment expenses."
See accompanying independent auditors' report.
87
Investment Section
Georgia's Waterfalls
Cherokee Falls
Cherokee and Hemlock Falls
Cloudland Canyon Waterfalls Trail: 2.1 miles, difficult Cloudland Canyon State Park lies in the northwest corner of Georgia, near the borders of Tennessee and Alabama. Though this out-and-back hike is only 2 miles, it's a difficult trek. The trail drops over 400 feet to the waterfalls before climbing to return to the trailhead. The hike's many stairs are a workout, although the beauty of the falls make the hike worthwhile. The Cloudland Canyon Waterfalls Trail skirts around the canyon's eastern walls. Views here from the canyon rim are beautiful in any season, though they're especially gorgeous in autumn. Cherokee Falls is the first waterfall, and plunges 60 feet into a clear, blue pool of water. This waterfall is created from Sitton's Gulch Creek dropping from an immense, arced rock outcrop. Cherokee Falls varies in intensity with seasonal rainfall, ranging from roaring to a mere trickle. The trail departs Cherokee Falls, retracing the hike to the second trail intersection and follows the Waterfalls Trail to Hemlock Falls. This next waterfall drops over 90 feet from a rock wall, plunging into the surrounding boulder-filled canyon floor.
Learn more at atlantatrails.com
Investment Section
Investment Overview
U.S. real GDP turned negative in the second half of the fiscal year as inflation moved toward record levels. The Federal Reserve began aggressively raising rates and reducing its bond holdings this past year to offset this pressure. The net result was an unusual return paradigm, with both equity and bond returns turning negative for the fiscal year. U.S. equities were down about 11% last year, while foreign equities were down over 19%. Broad domestic bond indexes were down over 8%.
We continually emphasize that the pension plan has a long-term investment horizon and that short-term concerns should not drive investment decisions. The System invests primarily 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 further diversify the portfolio and allow the System to participate in rising markets while moderating the risks on the downside. A high-quality balanced fund has proven to be a successful strategy in a variety of markets over long periods of time.
As in previous years, the bias to quality was a primary goal and was successfully met. "Conservation of Capital" and "Conservatism" remain the guiding principles for investment decisions. The Board of Trustees continues to use a diversified portfolio to accomplish these objectives.
Following 12.2% real GDP growth last year, the growth rate fell to 1.6% this year, attributable to negative real growth for the second half of the fiscal year. This turn in growth coincided with a spike in inflation, with a reported CPI of 9.1% for June, the largest 12-month increase since November 1981. Nominal GDP growth was 9.3%. Quarterly real GDP growth volatility remains unusually high and dates back to COVID-19-related shutdowns. Globally, foreign economies are as weak as, if not weaker than, the U.S. This was particularly the case in China, where global weakness and its zero-COVID-19 policy significantly slowed its economy. Other sources of weakness included the war between Russia and Ukraine and the growing likelihood of a recession in Europe.
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 typically outperform fixed income and cash by a very wide margin. For example, the ten-year returns for equities was 10.7%, while for bonds it was 1.5%. For that reason, the System has generally maintained significant equity exposure, with the remainder of the fund invested in fixed income securities designed to generate income and preserve capital.
terms and relative to an asset class index, by reducing emphasis on the short-term volatility of markets. The Daily Valuation Method, a time-weighted rate of return, was used to calculate returns in a manner consistent with the CFA Institute's objectives as stated in its publication, "Global Investment Performance Standards Handbook," third edition.
The S&P 500 had a return of (10.6%). The S&P MidCap 400 and the S&P SmallCap 500 indexes had returns of (14.6%) and (16.8%), respectively. While negative for the fiscal year, the long-term returns for these indexes are impressive, with all three reporting ten-year annualized performance of over 10%. Growth stocks underperformed value stocks for the year, a reversal from recent trends. On a sector basis, consumer staples, energy and utilities all had a positive return for the year.
International markets were similarly weak. The MSCI EAFE Index had a return of (17.8%) and the Emerging Markets Index had a return of (25.2%). Nearly all countries recorded a negative return over the past year. Japan was the largest negative contributor to the MSCI EAFE index, while China was the largest drag on the Emerging Markets Index performance. The U.S. dollar was particularly strong last year, with the representative United States Dollar Index reporting a 13.3% increase.
Fixed income yields moved meaningfully higher last year as central banks reversed course to focus on inflation. For example, the Federal Reserve began raising rates in March, with the Federal Funds Rate target range moving from 0-0.25% to 1.5-1.75%. These moves caused negative returns on bonds, with yields on the 1-year, 10-year, and 30-year Treasuries increasing by 2.6%, 1.5%, and 1.06%, respectively. The 10-year Treasury had a return of (11.0%) for the year, while the 30-year Treasury had a return of (19.1%).
We look at two fixed-income indexes to measure the bond market's performance. The Bloomberg U.S. Government/ Credit Index had a return of (10.9%). It is a broad index containing corporate and government-sponsored bonds as well as Treasuries. The FTSE Gov/Corp AAA/AA had a return of (8.8%). It is also a broad index containing higherrated corporate bonds as well as Treasuries and Government securities.
In summary, due to the long-term investment focus, and despite remarkable market volatility and high inflation, 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."
Returns for one, three, five, ten, twenty, and thirty-year periods are presented in this section. Longer periods allow for a more valid evaluation of returns, both in absolute
Prepared by the Division of Investment Services
90
Investment Section
Pooled Investment Fund
As of June 30, 2022 (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
15.0 10.0
5.0 0.0 -5.0 -10.0 -15.0 -20.0
1 Year 3 Year 5 Year 10 Year 20 Year 30 Year
Equities MSCI ACWI ex US
S&P 1500
6.0 4.0 2.0 0.0 -2.0 -4.0 -6.0 -8.0 -10.0 -12.0
$
13,793,518
1,026,546
36,112
515,797
357,357
1,334,220
191,101
34,923
$
17,289,574
1 Year
3 Year 5 Year 10 Year 20 Year 30 Year
Fixed Income Bloomberg US Government/Credit 1 month T bills
10.0 5.0 0.0 -5.0
-10.0 -15.0
1 Year 3 Year 5 Year 10 Year 20 Year 30 Year
Total Portfolio
CPI
Equities S&P 1500 MSCI ACWI
Fixed
Bloomberg US
1 Month Total Portfolio CPI
ex US
Income Government / Credit T-Bills
1 year
(15.27)% (11.02)%
(19.42)%
(7.43)%
(10.85)% 0.15 %
(11.71)%
3 year 5 year 10 year
7.93 % 8.72 % 10.73 %
10.29 % 10.92 % 12.79 %
1.35 % 2.50 % 4.83 %
(0.06)% 1.24 % 1.51 %
(0.77)% 1.05 % 1.67 %
0.53 % 1.02 % 0.57 %
6.40 % 7.05 % 8.26 %
20 year 30 year
7.91 % 8.86 %
9.17 % -- %
5.78 % -- %
3.63 % 5.32 %
3.71 % 4.91 %
1.12 % 2.15 %
6.97 % 7.94 %
Note: Time-weighted rates of return are calculated using the Daily Valuation Method based on market rates of return.
9.00 % 4.97 % 3.88 % 2.60 % 2.52 % 2.52 %
91
Investment Section
Asset Allocation at Fair Value
70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00%
0.00%
2022
2021
2020
Equities Mutual & Commingled Funds
2019
2018
Fixed Income Private Equity
2017
Investment Summary
Asset Allocation as of June 30 (in percentages)
Equities Fixed Income Mutual and Commingled Funds Private Equity
2022 59.5 % 26.0 11.2 3.3
2021 63.2 23.8 10.7 2.3
2020 60.9 26.9 10.2 2.0
Total
100.0 %
100.0
100.0
2019 61.1 27.4 9.7 1.8
100.0
2018 61.9 28.1 8.8 1.2
100.0
2017 63.9 27.1 8.2 0.8
100.0
Asset Allocation as of June 30 (in millions)
2022
2021
Equities Fixed Income Mutual and Commingled Funds Private Equity
$ 11,569 5,044 2,168 632
14,412 5,423 2,430 526
Total
$ 19,413 22,791
2020 11,279
4,959 1,893
365
18,496
2019 11,138
4,984 1,769
335
18,226
2018 11,140
5,040 1,599
222
18,001
2017 11,030
4,668 1,421
134
17,253
92
Investment Section
Schedule of Fees and Commissions
Year ended June 30, 2022 (In thousands)
Investment Advisors' Fees:
U.S. Equity
$
International Equity
Investment Commissions:
U.S. Equity
International Equity
Transaction Fees:
Miscellaneous*:
Total Fees and Commissions
$
*Includes capitalized fees not included in total investment expenses shown on page 93.
3,410 5,760
585 1,396
556 23,163
34,870
93
Investment Section
Twenty Largest Equity Holdings
As of June 30, 2022 (In thousands)
Shares
2,798,956 1,365,384
111,603 1,759,830
208,989 144,990 310,270 429,620 470,360 1,476,875 834,641 270,489 864,718 457,642 426,317 1,352,157 1,074,990 399,066 133,105 556,598
Company
Apple Inc. Microsoft Corp. Alphabet Inc. Amazon.Com Inc. UnitedHealth Group Inc. Tesla Inc. Berkshire Hathaway Inc. Visa Inc. Johnson & Johnson Pfizer Inc. Merck & Co. Inc. The Home Depot Inc. Taiwan Semiconductor Manufacturing Company Ltd. Nvidia Corp. Meta Platforms, Inc. Verizon Communications Inc. Coca Cola Co PepsiCo, Inc. Broadcom Inc. JPMorgan Chase & Co.
Top Twenty 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
$
382,673
350,672
243,621
186,911
107,343
97,639
84,710
84,588
83,494
77,433
76,094
74,187
70,691
69,374
68,744
68,622
67,628
66,508
64,664
62,678
$
2,388,274
9,181,004
$ 11,569,278
94
Investment Section
Top 10 Fixed Income Holdings*
As of June 30, 2022
Issuer
U.S. Treasury Note U.S. Treasury Note U.S. Treasury Note U.S. Treasury Note U.S. Treasury Note U.S. Treasury Note U.S. Treasury Note U.S. Treasury Bond U.S. Treasury Bond U.S. Treasury Note
Year of Maturity
2024 2030 2025 2025 2025 2024 2027 2039 2028 2028
Interest Rate
2.2500 % 0.8750 2.6250 2.5000 2.7500 1.0000 2.2500 3.5000 5.2500 1.5000
Par Value (in thousands)
$
313,000
315,000
200,000
200,000
190,000
180,000
160,000
113,000
102,000
120,000
Fair Value (in thousands)
$
307,695
265,967
197,962
197,376
188,301
171,416
153,394
118,045
114,746
108,966
Total of 10 Largest ERS & GDCP Fixed Income Holdings Remaining Fixed Income Holdings
Total ERS and Defined Contribution Fixed Income Securities
1,823,868 $ 3,219,563
$ 5,043,431
*A complete listing is available upon written request, subject to restrictions of O.C.G.A. Section 47-1-14.
95
Actuarial Section
Georgia's Waterfalls
Toccoa Falls
Toccoa Falls
Toccoa Falls: 100 yards, easy Toccoa Falls is located on the campus of Toccoa Falls College. It is nestled in the foothills of the Great Smoky Mountains and near Lake Hartwell. A meandering stream flows through the lower part of the 1,000-acre, wooded campus from the base of the 186-foot high waterfall. The short 100-yard path to the falls is wheelchair and stroller accessible. Toccoa Falls is a spectacular waterfall, higher than Niagara Falls, and is a popular tourist attraction and campus retreat.
Learn more at stephenscountyga.gov
Actuarial Section
ERS
3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700 Fax (678) 388-1730 www.CavMacConsulting.com
April 21, 2022
Board of Trustees Employees' Retirement System of Georgia Two Northside 75, Suite 300 Atlanta, GA 30318-7701
Attention: Mr. James Potvin, Executive Director
Members of the Board:
Section 47-2-26 of the law governing the operation of the Employees' Retirement System (ERS) 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, 2021. The report indicates that annual employer contributions at the rate of 24.60% of compensation for Old Plan Members, 29.35% of compensation for New Plan Members, and 25.51% of compensation for GSEPS Members for the fiscal year ending June 30, 2024 are sufficient to support the benefits of the System.
In preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report.
In our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2021 session of the General Assembly. In addition, the results of the valuation reflect the two onetime 3% payments to certain retirees and beneficiaries effective July 2021 and January 2022.
Since the previous valuation, a new funding policy has been adopted by the Board. The new funding policy provides for a new Transitional Unfunded Actuarial Accrued Liability (UAAL) as of June 30, 2021, which will be amortized over a closed 20-year period. All previous Transitional and Incremental UAAL bases have been rolled into this new Transitional UAAL. All future new Incremental
UAAL bases established after this valuation will be amortized over closed 20-year periods as well.
In addition, the new funding policy provides that the Actuarial Accrued Liability and Normal Cost of the System will include a prefunded variable Cost-of-Living Adjustment (COLA) for eligible retirees and beneficiaries of the System. Under the new policy, future COLAs are provided through a profit-sharing mechanism using the System's asset performance. More information, including definitions and the methodology used in determining the annual COLA rate, is provided in the Appendix of the Funding Policy in Schedule F of this report.
Based on the new funding policy, the long-term annual investment rate of return assumption will be 7.20%. Effective with the June 30, 2022 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the actual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of investment expenses. The assumed rate of return used in this valuation was decreased from 7.30% to 7.20%.
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 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
(continued) 98
Actuarial Section
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.
We have provided the following information and supporting schedules for the Actuarial Section of the Annual Comprehensive 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 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.
We note that as we are preparing this report, the world is in the midst of a pandemic. We have considered available information, but do not believe that there is yet sufficient data to warrant the modification of any of our assumptions at this time.
In order to prepare the results in this report, we have utilized appropriate actuarial models that were developed for this purpose. These models use assumptions about future contingent events along with recognized actuarial approaches to develop the needed results.
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.
The actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate.
Sincerely yours,
Edward J. Koebel, EA, FCA, MAAA Chief Executive Officer
Cathy Turcot Principal and Managing Director
Ben Mobley, ASA, FCA, MAAA Consulting Actuary
99
Actuarial Section
PSERS April 21, 2022
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
Attention: 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 (PSERS) 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, 2021. Based on a monthly benefit accrual rate of $15.75, which became effective July 1, 2021, the valuation indicates that annual employer contributions of $29,531,000 or $918.35 per active member for the fiscal year ending June 30, 2024 are sufficient to support the benefits of the System.
Since the previous valuation, the monthly benefit accrual rate has been increased from $15.50 to $15.75 per year of creditable service for members retiring on or after August 1, 2012, with an effective date of July 1, 2021.
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.
current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of investment expenses. Since the actual rate of return for the year ending June 30, 2021 was greater than 7.30%, the assumed rate of return used in this valuation was decreased from 7.30% to 7.20%.
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 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.
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 2021 session of the General Assembly.
The valuation reflects that the Board granted 1.5% costof-living adjustments (COLAs) to certain retired members on July 1, 2021 and on January 1, 2022.
Effective with the June 30, 2017 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the actual rate of return for the fiscal year ending with the
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 Annual Comprehensive Financial Report:
Summary of Actuarial Assumptions Schedule of Active Members Schedule of Funding Progress Schedule of Retirees Added to and Removed from
Rolls
(continued) 100
Actuarial Section
Analysis of Change in Unfunded Accrued Liability Solvency Test Results
data to warrant the modification of any of our assumptions prior to the next experience study.
The System is currently being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is currently operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated.
This is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the System and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System.
We note that as we are preparing this report, the world is in the midst of a pandemic. We have considered available information, but do not believe that there is yet sufficient
In order to prepare the results in this report we have utilized appropriate actuarial models that were developed for this purpose. These models use assumptions about future contingent events along with recognized actuarial approaches to develop the needed results.
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.
The actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate.
Sincerely yours,
Edward J. Koebel, EA, FCA, MAAA Chief Executive Officer
Cathy Turcot Principal and Managing Director
Ben Mobley, ASA, FCA, MAAA Consulting Actuary
101
Actuarial Section
GJRS April 21, 2022
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
Attention: 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, 2021. The report indicates that annual employer contributions at the rate of 6.90% of compensation for the fiscal year ending June 30, 2024 are sufficient to support the benefits of the System.
In preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report.
In our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2021 session of the General Assembly.
the assumed rate of return used in the current valuation was decreased from 7.30% to 7.20%.
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 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.
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.
The results of the valuation reflect the two one-time 3% payments to certain retirees and beneficiaries effective July 2021 and January 2022.
We have provided the following information and supporting schedules for the Actuarial Section of the Annual Comprehensive Financial Report:
Effective with the June 30, 2017 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the actual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of investment expenses. Since the actual rate of return for the year ending in June 30, 2021 was greater than 7.30%,
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
(continued) 102
Actuarial Section
The System is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated.
This is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System.
We note that as we are preparing this report, the world is in the midst of a pandemic. We have considered available information, but do not believe that there is yet sufficient data to warrant the modification of any of our assumptions at this time.
In order to prepare the results in this report, we have utilized appropriate actuarial models that were developed for this purpose. These models use assumptions about future contingent events along with recognized actuarial approaches to develop the needed results.
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.
The actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate.
Sincerely yours,
Edward J. Koebel, EA, FCA, MAAA Chief Executive Officer
Cathy Turcot Principal and Managing Director
Ben Mobley, ASA, FCA, MAAA Consulting Actuary
103
Actuarial Section
LRS April 21, 2022
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
Attention: 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 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, 2021. The report indicates that no annual employer contributions for the fiscal year ending June 30, 2024 are required to support the benefits of the System.
The results of the valuation reflect that the Board did not grant the anticipated cost-of-living adjustments (COLAs) to retired members on July 1, 2021 and on January 1, 2022. In addition, the results of the valuation reflect the two onetime 3% payments to certain retirees and beneficiaries effective July 2021 and January 2022.
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 2021 session of the General Assembly.
Effective with the June 30, 2017 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the actual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of investment expenses. Since the actual rate of return for
the year ending June 30, 2021 was greater than 7.30%, the assumed rate of return used in this valuation was decreased from 7.30% to 7.20%.
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 Annual Comprehensive 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
(continued) 104
Actuarial Section
The System is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated.
This is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System.
We note that as we are preparing this report, the world is in the midst of a pandemic. We have considered available information, but do not believe that there is yet sufficient data to warrant the modification of any of our assumptions at this time.
In order to prepare the results in this report, we have utilized appropriate actuarial models that were developed for this purpose. These models use assumptions about future contingent events along with recognized actuarial approaches to develop the needed results.
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.
The actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate.
Sincerely yours,
Edward J. Koebel, EA, FCA, MAAA Chief Executive Officer
Cathy Turcot Principal and Managing Director
Ben Mobley, ASA, FCA, MAAA Consulting Actuary
105
Actuarial Section
GMPF April 21, 2022
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
Attention: 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, 2021. The report indicates that annual employer contributions of $2,793,161 or $194.20 per active member for the fiscal year ending June 30, 2024 are sufficient to support the benefits of the Fund.
In preparing the valuation, the actuary relied on data provided by the Fund. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report.
In our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the Fund enacted through the 2021 session of the General Assembly.
Effective with the June 30, 2017 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the actual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of investment expenses. Since the actual rate of return for the year ending June 30, 2021 was greater than 7.30%, the assumed rate of return used in this valuation was decreased from 7.30% to 7.20%.
The Fund is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the Fund and to reasonable expectations of anticipated experience under the Fund. The assumptions and methods used for 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.
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 Annual Comprehensive 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
(continued) 106
Actuarial Section
The Fund is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the Fund is operating on an actuarially sound basis. Assuming that contributions to the Fund are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the Fund may be safely anticipated.
This is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience is performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the Fund.
We note that as we are preparing this report, the world is in the midst of a pandemic. We have considered available information, but do not believe that there is yet sufficient data to warrant the modification of any of our assumptions prior to the next experience study.
In order to prepare the results in this report we have utilized appropriate actuarial models that were developed for this purpose. These models use assumptions about future contingent events along with recognized actuarial approaches to develop the needed results.
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.
The actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate.
Sincerely yours,
Edward J. Koebel, EA, FCA, MAAA Chief Executive Officer
Cathy Turcot Principal and Managing Director
Ben Mobley, ASA, FCA, MAAA Consulting Actuary
107
Actuarial Section
SEAD Post-Retirement (SEAD-OPEB) April 21, 2022
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
Attention: Mr. James Potvin, Executive Director
Members of the Board:
Chapters 47-2 and 47-19 of the Code of Georgia which govern the operation of the Georgia Employees' Group Term Life Insurance Plan provide that the actuary shall make periodic valuations of the contingent assets and liabilities of the Insurance Plan on the basis of regular interest and the tables last adopted by the Board of Trustees. In this report, we have determined liabilities for life insurance benefits payable upon death after retirement (Post-Retirement).
We have submitted the report giving the results of the valuation of the Plan prepared as of June 30, 2021. The report indicates that employee contributions at the rate of 0.45% of active payroll for Old Plan members of the Employees' Retirement System, and 0.23% of active payroll for New Plan members of the Employees' Retirement System, certain members of the Legislative Retirement System and certain members of the Judicial Retirement System are sufficient to support the postretirement benefits of the Plan. No employer contribution is required for the fiscal year ending June 30, 2024 for preretirement benefits.
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 Plan enacted through the 2021 session of the General Assembly.
Effective with the June 30, 2017 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the
actual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of investment expenses. Since the actual rate of return for the year ending June 30, 2021 was greater than 7.30%, the assumed rate of return used in the current valuation was decreased from 7.30% to 7.20%.
The Plan 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 Plan and to reasonable expectations of anticipated experience under the Plan. 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. 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.
The Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 74 and 75. The necessary disclosure information is provided in separate supplemental reports.
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
(continued) 108
Actuarial Section
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.
We note that as we are preparing this report, the world is in the midst of a pandemic. We have considered available information, but do not believe that there is yet sufficient data to warrant the modification of any of our assumptions at this time.
In order to prepare the results in this report, we have utilized appropriate actuarial models that were developed for this purpose. These models use assumptions about future contingent events along with recognized actuarial approaches to develop the needed results.
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.
The actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the Plan. Use of these computations for purposes other than meeting these requirements may not be appropriate.
Sincerely yours,
Edward J. Koebel, EA, FCA, MAAA Chief Executive Officer
Cathy Turcot Principal and Managing Director
Ben Mobley, ASA, FCA, MAAA Consulting Actuary
109
Actuarial Section
Summary of Plan Provisions
ERS Please see Notes to Financial Statements, (2)(a), pages 33-34. PSERS Please see Notes to Financial Statements, (2)(b), page 34-35. LRS Please see Notes to Financial Statements, (2)(c), page 35-36. GJRS Please see Notes to Financial Statements, (2)(d), pages 36-37. GMPF Please see Notes to Financial Statements, (2)(e), pages 37-38. SEAD-OPEB Please see Notes to Financial Statements, (2)(h), pages 38-39.
The following Boards are responsible for establishing and maintaining the funding policies of the various defined benefit pension plans administered by the System:
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
The following Board is responsible for establishing and maintaining the funding policy of the defined benefit postemployment life insurance plan administered by the System:
Board of Directors of the State Employees' Assurance Department: SEAD-OPEB
ERS, PSERS, LRS, GJRS, and GMPF are all subject to the provisions of GASB Statement No. 67, Financial Reporting for Pension Plans, an amendment of GASB Statement No. 25 (GASB 67). All of the plans covered under GASB 67 use the Entry Age Normal actuarial cost method for both funding and financial reporting purposes. This continues a longstanding practice for all of those plans and provides a point of consistency between the funding provisions and the GASB 67 requirements.
SEAD-OPEB is subject to the provisions of GASB 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. SEAD-OPEB uses the Entry Age Normal actuarial cost method for both funding and financial reporting purposes.
For all of the plans covered under GASB 67, the GASB 67 reports prepared as of June 30, 2022 were largely based on the data, assumptions, and results of the annual funding valuations as of June 30, 2021. The Total Pension Liability (TPL) for each plan, determined using the Entry Age Normal method, was then rolled forward to the June 30, 2022 measurement date. The Net Pension Liability for each plan is equal to the rolled forward TPL less the plan's net position as of June 30, 2022.
For the plan covered under GASB 74, the GASB 74 report prepared as of June 30, 2022 was largely based on the data, assumptions, and results of the annual funding valuation as of June 30, 2021. The Total OPEB Liability (TOL) for the plan, determined using the Entry Age Normal method, was then rolled forward to the June 30, 2022 measurement date. The Net OPEB Liability for the plan is equal to the rolled forward TOL less the plan's net position as of June 30, 2022.
For the pension plans' funding valuations as of June 30, 2021, the Actuarial Value of Assets is calculated using a fiveyear 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 life insurance plan's funding valuation as of June 30, 2021, the Actuarial Value of Assets is equal to the Fair Value of Assets as of June 30, 2021.
(continued) 110
Actuarial Section
Summary of Plan Provisions
For the funding valuations, each plan covered under GASB 67 utilizes a 7.20% assumed rate of return and a 7.20% discount rate for the calculation of the respective plans' liabilities. The Single Equivalent Interest Rate required under GASB 67 has been determined to be 7.00% by the plans' actuaries. The plan covered under GASB 74 utilizes a 7.20% assumed rate of return and a 7.20% discount rate for the calculation of the plan's liabilities. The Single Equivalent Interest Rate required under GASB 74 has been determined to be 7.00% by the plan's actuaries.
111
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 plans. 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 valuations were performed as of June 30, 2021 based on actuarial assumptions approved by the ERS Board, PSERS Board, GJRS Board, and SEAD Board during the last experience study on December 17, 2020.
The more pertinent facts and significant assumptions underlying the computations included in the June 30, 2021 reports are as follows:
Valuation Date Actuarial Cost Method
Amortization Method
ERS
PSERS
GJRS
June 30, 2021 Entry age
June 30, 2021 Entry age
June 30, 2021 Entry age
Level dollar, closed Level dollar, closed
Level percent of pay, closed
LRS
June 30, 2021 Entry age
Level dollar, open
GMPF
June 30, 2021 Entry age
Level dollar, closed
Amortization Period
Actuarial Asset Valuation Method
Investment Rate of Return Inflation Rate Projected Salary Increases COLA
20.0 years
17.5 years
13.7 years
Infinite
13.0 years
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 five years. One-fifth of the excess or shortfall is recognized each year for five years.
7.20% 2.50% 3.00 - 6.75% 1.05% annually
7.20% 2.50%
n/a 1.50% Semi-annually
7.20% 2.50% 3.75% None
7.20% 2.50%
n/a 1.50% Semi-annually
7.20% 2.50%
n/a None
Valuation Date Actuarial Cost Method
Amortization Method
Amortization Period
Actuarial Asset Valuation Method
Investment Rate of Return Inflation Rate Projected Salary Increases
ERS GJRS LRS COLA
SEAD-OPEB June 30, 2021
Entry age Level dollar, open
Infinite
Fair Value of Assets
7.20% 2.50%
3.00-6.75% 3.75% n/a None
(continued) 112
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 Annual Rates of
Death
Disability
Age Men Women Men Women
20 .0370 % .0130 % -- % -- %
25 .0280 .0090
--
--
30 .0360 .0150
.010
.005
35 .0470 .0230
.040
.010
40 .0660 .0360
.200
.085
45 .0980 .0560
.375
.215
50 .1490 .0830
.625
.365
55 .2190 .1230
.875
.565
60 .3190 .1860
--
--
65 .4680 .2960
--
--
Annual Rates of Withdrawal Years of Service
0-4
5-9
10 & over
Age
Men Women Men Women Men Women
20
40.00 % 35.00 %
-- %
-- %
-- %
-- %
25
30.00 27.00 16.25 18.00
--
--
30
25.00 23.00 12.50 12.50
8.00
9.00
35
23.00 20.00 10.50 10.25
6.25
6.50
40
20.00 18.00
9.50
9.00
4.75
5.25
45
20.00 17.00
8.50
8.00
4.00
4.25
50
17.00 16.00
7.25
7.50
4.50
4.25
55
15.00 15.00
6.75
7.25
4.75
4.25
60
14.50 15.50
5.50
7.00
--
--
65
14.50 16.50 12.50 12.00
--
--
(continued) 113
Actuarial Section
Summary of Actuarial Assumptions
Rates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability) PSERS
Annual Rates of Annual
Death
Rates of
Disability
Age Men Women Both
20 .0410 % .0130 %
-- %
25 .0410 .0120
--
30 .0520 .0190
--
35 .0680 .0300
.0018
40 .0960 .0470
.0110
45 .1430 .0720
.0330
50 .2180 .1070
.0770
55 .3200 .1570
.2250
60 .4660 .2380
.2500
65 .6820 .3800
--
Annual Rates of Withdrawal Years of Service
0-4
5-9
10 & over
Age Men Women Men Women Men Women
20 34.00 % 35.00 %
-- %
-- %
-- %
-- %
25 31.00 31.00 19.00 20.00
--
--
30 27.50 25.00 17.00 16.50 12.50 10.00
35 24.50 22.00 15.50 15.00
9.00 10.00
40 22.00 20.00 13.50 14.00
8.25
9.00
45 21.00 18.00 12.50 12.00
7.00
8.00
50 18.50 16.25 11.00 10.00
7.00
7.00
55 15.25 13.50
9.00
9.00
6.00
6.00
60 13.50 13.00
9.00
9.00
--
--
(continued) 114
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
-- %
.0370 %
.0130 %
-- %
25
5.00
.0280
.0090
.0125
30
5.00
.0360
.0150
.0250
35
5.00
.0470
.0230
.0375
40
4.00
.0660
.0360
.0500
45
3.50
.0980
.0560
.0875
50
2.75
.1490
.0830
.1250
55
2.75
.2190
.1230
.2250
60
2.50
.3190
.1860
.3625
65
2.50
.4680
.2960
.5875
LRS
Annual Rates of
Withdrawal
Death
Age
Both
Men Women
20
-- % .0370 % .0130 %
25
9.0
.0280 .0090
30
9.0
.0360 .0150
35
9.0
.0470 .0230
40
10.0
.0660 .0360
45
11.0
.0980 .0560
50
9.0
.1490 .0830
55
8.0
.2190 .1230
60
8.0
.3190 .1860
65
8.0
.4680 .2960
GMPF
Rates of Withdrawal from Active Service
Service 2 or Less 3-7 8-9 10-14 15-19 20 or more
Rates 11.5 % 17.0 13.0 11.5
8.5 15.5
Age
Rates of Death
Men
Women
20
.0370 % .0130 %
25
.0280
.0090
30
.0360
.0150
35
.0470
.0230
40
.0660
.0360
45
.0980
.0560
50
.1490
.0830
55
.2190
.1230
60
.3190
.1860
65
.4680
.2960
(continued) 115
Actuarial Section
Summary of Actuarial Assumptions
Rates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability)
SEAD-OPEB
All Groups
ERS
GJRS
Annual Rates of Death
Annual Rates of Disability
Annual Rates of Disability
Age
Men
Women
Men
Women
Both
20
.0370 % .0130 %
-- %
-- %
-- %
25
.0280
.0090
--
--
.0125
30
.0360
.0150
.0100 .0050
.0250
35
.0470
.0230
.0400 .0100
.0375
40
.0660
.0360
.2000 .0850
.0500
45
.0980
.0560
.3750 .2150
.0875
50
.1490
.0830
.6250 .3650
.1250
55
.2190
.1230
.8750 .5650
.2250
60
.3190
.1860
--
--
.3625
65
.4680
.2960
--
--
.5875
ERS
LRS
GJRS
Annual Rates of Withdrawal Years of Service
Annual Rates Annual Rates of Withdrawal of Withdrawal
0-4
5-9
10 & over
Age Men Women Men Women Men Women
20 40.00 % 35.00 %
-- %
-- %
-- %
-- %
25 30.00
27.00
16.25
18.00
--
--
30 25.00
23.00
12.50
12.50
8.00
9.00
35 23.00
20.00
10.50
10.25
6.25
6.50
40 20.00
18.00
9.50
9.00
4.75
5.25
45 20.00
17.00
8.50
8.00
4.00
4.25
50 17.00
16.00
7.25
7.50
4.50
4.25
55 15.00
15.00
6.75
7.25
4.75
4.25
60 14.50
15.50
5.50
7.00
--
--
65 14.50
16.50
12.50
12.00
--
--
Both 9.00 % 9.00 9.00 9.00
10.00 11.00
9.25 8.00 8.00 8.00
Both 5.00 % 5.00 5.00 5.00 4.00 3.50 2.75 2.75 2.50 2.50
(continued) 116
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
3.0
5.0
10.5
10.0
100.0
100.0
70.0
70.0
60
--
--
15.0
20.0
97.5
95.0
40.0
55.0
62
--
--
32.0
40.0
97.5
95.0
40.0
65.0
65
--
--
35.0
40.0
35.0
40.0
35.0
40.0
67
--
--
35.0
35.0
35.0
35.0
35.0
35.0
70
--
--
35.0
35.0
35.0
35.0
35.0
35.0
75
--
--
100.0
100.0
100.0
100.0
100.0
100.0
New Plan and GSEPS
Early Retirement
Normal Retirement
Age
Men
Women
Men*
Women**
50
5.0 %
3.8 %
60.0 %
42.0 %
52
5.0
3.8
50.0
42.0
55
6.0
5.8
50.0
40.0
57
6.0
7.3
45.0
37.0
60
--
--
25.0
28.0
62
--
--
37.5
37.5
65
--
--
32.0
33.0
67
--
--
32.0
32.0
70
--
--
30.0
30.0
75
--
--
100.0
100.0
*An additional 20% are assumed to retire in the first year eligible for unreduced retirement with 30 years of service before age 60.
**An additional 25% for ages below 53 and 20% for ages 53 to 59 are assumed to retire in the first year eligible for unreduced retirement with 30 years of service before age 60.
(continued) 117
Actuarial Section
Summary of Actuarial Assumptions
Annual Rates of Retirement PSERS
Age Annual Rate of Retirement
Age
Annual Rate of Retirement
60
12.0 %
71
25.0 %
61
12.0
72
25.0
62
21.0
73
25.0
63
17.0
74
25.0
64
15.0
75
25.0
65
26.0
76
25.0
66
26.0
77
25.0
67
22.0
78
25.0
68
22.0
79
25.0
69
23.5
80 & over
100.0
70
25.0
GJRS LRS
Age
60 61-64
65 66-67 68-69 70-77
78
Annual Rate of Retirement
15.0 % 10.0 13.0 15.0 18.0 25.0 100.0
Age Annual Rate of Retirement
60
8.0 %
61
8.0
62
12.0
63
8.0
64
8.0
65
10.0
Age 66 67 68 69 70-79 80
Annual Rate of Retirement 10.0 % 10.0 10.0 15.0 15.0
100.0
(continued) 118
Actuarial Section
Summary of Actuarial Assumptions
Annual Rates of Retirement GMPF
Age
60 61 62 63 64 65 & over
Annual Rate of Retirement
75.0 % 75.0 60.0 50.0 50.0 100.0
SEAD-OPEB
ERS Members
Age 50 52 55 57 60 62 65 67 70 75
Old Plan
Early Retirement Age 60 or 30 years
Men 2.0 % 2.0 3.0 3.5 -- -- -- -- -- --
Women 2.0 % 2.0 3.5 5.0 -- -- -- -- -- --
Men 7.5 % 7.5 7.5
10.5 15.0 32.0 35.0 35.0 35.0 100.0
Women 6.0 % 6.0
10.0 10.0 20.0 40.0 40.0 35.0 35.0 100.0
34 years
More than 34 years
Men 100.0 % 100.0 100.0 100.0
97.5 97.5 35.0 35.0 35.0 100.0
Women 100.0 % 100.0 100.0 100.0 95.0 95.0 40.0 35.0 35.0 100.0
Men 90.0 % 90.0 75.0 70.0 40.0 40.0 35.0 35.0 35.0 100.0
Women 100.0 % 100.0 90.0 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
5.0 %
3.8 %
60.0 %
42.0 %
52
5.0
3.8
50.0
42.0
55
6.0
5.8
50.0
40.0
57
6.0
7.3
45.0
37.0
60
--
--
25.0
28.0
62
--
--
37.5
37.5
65
--
--
32.0
33.0
67
--
--
32.0
32.0
70
--
--
30.0
30.0
75
--
--
100.0
100.0
*An additional 20% of active male New Plan and GSEPS members are expected to retire in the year in which they attain 30 years of service before age 60. **An additional 25% of active female New Plan and GSEPS members less than age 53 and 20% for ages 53 to 59 are expected to retire in the year in which they attain 30 years of service before age 60.
(continued) 119
Actuarial Section
Summary of Actuarial Assumptions
Annual Rates of Retirement LRS Members
Age Annual Rate of Retirement
60
8.0 %
61
8.0
62
12.0
63
8.0
64
8.0
65
10.0
Age
66 67 68 69 70-79 80
Annual Rate of Retirement
10.0 % 10.0 10.0 15.0 15.0 100.0
GJRS Members
Age
60 61-64
65 66-67 68-69 70-77
78
Annual Rate of Retirement
15.0 % 10.0 13.0 15.0 18.0 25.0 100.0
(continued) 120
Actuarial Section
Summary of Actuarial Assumptions
Annual Rates of Death After Retirement1 For all plans except PSERS, the Pub-2010 Family of Tables projected generationally with MP-2019 Scale and with further adjustments are used for post-retirement mortality assumptions as follows:
Participant Type Service Retirees
Membership Table
Set Forward (+)/ Setback (-)
Adjustment To Rates
General Healthy Annuitant
Male: +1; Female: +1 Male: 105%; Female: 108%
Disability Retirees General Disabled Male: -3; Female: 0 Male: 103%; Female: 106%
Beneficiaries
General Contingent Survivors
Male: +2; Female: +2 Male: 106%; Female: 105%
For PSERS, the Pub-2010 Family of Tables projected generationally with MP-2019 Scale and with further adjustments are used for post-retirement mortality assumptions as follows:
Participant Type Service Retirees Disability Retirees
Beneficiaries
Membership Table
General Healthy Below-Median
Annuitant
Set Forward (+)/ Setback (-)
Male: +2; Female: +2
Adjustment To Rates Male: 101%; Female: 103%
General Disabled Male: -3; Female: 0 Male: 103%; Female: 106%
General BelowMedian Contingent Male: +2; Female: +2 Male: 104%; Female: 99%
Survivors
ERS
Service Retirement Disability Retirement
Beneficiaries
Age
Men
Women
Men
Women
Men
Women
50
0.3371 % 0.2516 % 1.2576 % 1.5720 % 0.7918 % 0.3843 %
55
0.4861
0.3251
1.8725
1.8465
0.9402
0.5334
60
0.6941
0.4493
2.3484
2.0734
1.1978
0.7529
65
1.0532
0.7366
2.7573
2.3914
1.7257
1.1057
70
1.7882
1.2863
3.4536
3.0337
2.7157
1.7000
75
3.1448
2.2799
4.4743
4.2432
4.3036
2.7500
80
5.6427
4.0900
6.0986
6.3674
6.8879
4.6778
85
10.0958
7.6043
8.8220
9.8909 11.3049
8.4315
90
16.9785 13.8596 12.9831 14.4849 18.6083 14.6496
1Base mortality rates as of 2010 before application of the improvement scale
(continued) 121
Actuarial Section
Summary of Actuarial Assumptions
Annual Rates of Death After Retirement1 PSERS
Service Retirement Disability Retirement
Beneficiaries
Age
Men
Women
Men
Women
Men
Women
50
0.7989 % 0.4532 % 1.2576 % 1.5720 % 0.9984 % 0.5930 %
55
0.9837
0.5037
1.8725
1.8465
1.1523
0.7742
60
1.1726
0.6015
2.3484
2.0734
1.4258
1.0237
65
1.5736
0.8827
2.7573
2.3914
1.9978
1.4147
70
2.5785
1.5296
3.4536
3.0337
3.0680
2.0731
75
4.3329
2.6770
4.4743
4.2432
4.7414
3.1878
80
7.4043
4.7679
6.0986
6.3674
7.3944
5.1450
85
12.4301
8.7849
8.8220
9.8909 11.8154
8.7684
90
19.3173 15.3594 12.9831 14.4849 19.0320 14.3778
GJRS
Service Retirement Disability Retirement
Beneficiaries
Age
Men
Women
Men
Women
Men
Women
50
0.3371 % 0.2516 % 1.2576 % 1.5720 % 0.7918 % 0.3843 %
55
0.4861
0.3251
1.8725
1.8465
0.9402
0.5334
60
0.6941
0.4493
2.3484
2.0734
1.1978
0.7529
65
1.0532
0.7366
2.7573
2.3914
1.7257
1.1057
70
1.7882
1.2863
3.4536
3.0337
2.7157
1.7000
75
3.1448
2.2799
4.4743
4.2432
4.3036
2.7500
80
5.6427
4.0900
6.0986
6.3674
6.8879
4.6778
85
10.0958
7.6043
8.8220
9.8909 11.3049
8.4315
90
16.9785 13.8596 12.9831 14.4849 18.6083 14.6496
LRS
Service Retirement Disability Retirement
Beneficiaries
Age
Men
Women
Men
Women
Men
Women
50
0.3371 % 0.2516 % 1.2576 % 1.5720 % 0.7918 % 0.3843 %
55
0.4861
0.3251
1.8725
1.8465
0.9402
0.5334
60
0.6941
0.4493
2.3484
2.0734
1.1978
0.7529
65
1.0532
0.7366
2.7573
2.3914
1.7257
1.1057
70
1.7882
1.2863
3.4536
3.0337
2.7157
1.7000
75
3.1448
2.2799
4.4743
4.2432
4.3036
2.7500
80
5.6427
4.0900
6.0986
6.3674
6.8879
4.6778
85
10.0958
7.6043
8.8220
9.8909 11.3049
8.4315
90
16.9785 13.8596 12.9831 14.4849 18.6083 14.6496
1Base mortality rates as of 2010 before application of the improvement scale
122
(continued)
Actuarial Section
Summary of Actuarial Assumptions
Annual Rates of Death After Retirement1 GMPF
Age 50 55 60 65 70 75 80 85 90
Service Retirement
Men
Women
0.3371 % 0.2516 %
0.4861
0.3251
0.6941
0.4493
1.0532
0.7366
1.7882
1.2863
3.1448
2.2799
5.6427
4.0900
10.0958
7.6043
16.9785 13.8596
SEAD-OPEB
Service Retirement Disability Retirement
Beneficiaries
Age
Men
Women
Men
Women
Men
Women
50
0.3371 % 0.2516 % 1.2576 % 1.5720 % 0.7918 % 0.3843 %
55
0.4861
0.3251
1.8725
1.8465
0.9402
0.5334
60
0.6941
0.4493
2.3484
2.0734
1.1978
0.7529
65
1.0532
0.7366
2.7573
2.3914
1.7257
1.1057
70
1.7882
1.2863
3.4536
3.0337
2.7157
1.7000
75
3.1448
2.2799
4.4743
4.2432
4.3036
2.7500
80
5.6427
4.0900
6.0986
6.3674
6.8879
4.6778
85
10.0958
7.6043
8.8220
9.8909 11.3049
8.4315
90
16.9785 13.8596 12.9831 14.4849 18.6083 14.6496
1Base mortality rates as of 2010 before application of the improvement scale
123
Actuarial Section
Active Members
ERS
Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Employers 723 716 425 423 425 427 419 420 417 406
Active Members 63,942 61,550 60,486 60,416 59,766 60,906 60,405 59,207 57,059 53,330
Annual Payroll (in thousands) $ 2,414,884
2,335,773 2,315,625 2,352,920 2,384,358 2,546,492 2,634,129 2,611,965 2,612,773 2,477,691
Average Pay $ 37,767
37,949 38,284 38,945 39,895 41,810 43,608 44,116 45,791 46,460
Change 0.4 % 0.5 0.9 1.7 2.4 4.8 4.3 1.2 3.8 1.5
PSERS PSERS is not a compensation based plan.
Year
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Employers
189 187 184 183 182 184 184 187 186 186
Active Members
38,654 37,361 36,096 35,477 34,866 35,509 34,953 34,767 34,736 32,157
GJRS
Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Employers 96 97 92 91 93 94 93 93 92 91
Active Members 503 506 513 516 526 527 527 521 522 538
Annual Payroll (in thousands)
$
51,898
52,807
53,628
54,272
57,401
59,695
60,572
60,532
61,544
63,421
Average Pay $ 103,177
104,362 104,539 105,178 109,128 113,273 114,937 116,184 117,900 117,883
Change 0.0 % 1.1 0.2 0.6 3.8 3.8 1.5 1.1 1.5 (0.0)
(continued) 124
Actuarial Section
Active Members
LRS
LRS is not a compensation based plan. GMPF
Year
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Employers
1 1 1 1 1 1 1 1 1 1
Active Members
220 223 222 218 224 222 222 221 219 216
GMPF is not a compensation based plan. SEAD-OPEB
Year
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Employers
1 1 1 1 1 1 1 1 1 1
Active Members
13,526 13,573 13,469 13,754 13,850 13,037 13,804 13,711 14,095 14,383
Year
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Employers
815 811 482 481 477 455 459 456 444 412
Active Members
49,261 43,512 39,101 35,189 32,076 29,024 26,224 23,499 21,144 18,875
Note: Payroll data on page 124 for fiscal year 2021 will not equal that which is presented in the Financial section in the Schedules of Employers' and Nonemployer Contributions on pages 67-68. 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.
125
Actuarial Section
Member and Employer Contribution Rates
ERS
Year
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
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
14.90 % 18.46 21.96 24.72 24.69 24.69 24.66 24.66 24.66 24.63
14.90 % 18.46 21.96 24.72 24.69 24.69 24.66 24.66 24.66 24.63
GSEPS
11.54 % 15.18 18.87 21.69 21.69 21.66 21.66 21.64 21.57 21.57
* Old Plan rate includes an employer pick-up of employee contributions. PSERS
GJRS
Year
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
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
Employer
$ 90 per year $ 90 per year $ 90 per year $ 90 per year $ 90 per year $ 90 per year $ 90 per year $ 90 per year $ 90 per year $ 90 per year
$ 24,829,000 27,160,000 28,461,000 28,580,000 26,277,000 29,276,000 30,263,000 32,496,000 30,264,000 32,491,000
Year
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Member
7.50 % 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50
Employer
3.90 % 4.23 6.98 12.19 10.48 7.17 7.83 9.13 8.38 8.81
126
(continued)
Actuarial Section
Member and Employer Contribution Rates
LRS
Year
Member
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
8.50 % 8.50 8.50 8.50 8.50 8.50 8.50 8.50 8.50 8.50
* Member rate includes an employer pick-up of employee contributions.
GMPF
Employer
$ 128,000 45,000 -- -- -- -- -- -- -- --
Year
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Member
n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Employer
$ 1,703,000 1,892,000 1,893,369 1,989,530 2,017,875 2,377,312 2,537,272 2,611,590 2,683,883 2,697,265
SEAD-OPEB
Year
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Member - Old Plan
0.45 % 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 0.23
Employer
0.27 % -- -- -- -- -- -- -- -- --
127
Actuarial Section
Schedules of Funding Progress - Defined Benefit Plans
(in thousands)
Employees' Retirement System Public School Employees Retirement System1 Legislative Retirement System Georgia Judicial Retirement System
Actuarial Valuation
Date
6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021
$
** * * ** *
6/30/2012 6/30/2013 6/30/2014 6/30/2015 ** 6/30/2016 6/30/2017 * 6/30/2018 * 6/30/2019 6/30/2020 ** 6/30/2021 *
6/30/2012 6/30/2013 6/30/2014 6/30/2015 ** 6/30/2016 6/30/2017 * 6/30/2018 * 6/30/2019 6/30/2020 ** 6/30/2021 *
6/30/2012 6/30/2013 6/30/2014 6/30/2015 ** 6/30/2016 6/30/2017 * 6/30/2018 * 6/30/2019 6/30/2020 ** 6/30/2021 *
Actuarial Value of Plan Assets
(a)
12,260,595 12,129,804 12,376,120 12,675,649 12,854,518 13,088,185 13,412,046 13,481,219 13,556,622 14,383,600
710,915 727,268 765,450 805,277 834,554 865,786 905,046 931,032 961,431 1,042,196
28,990 29,481 30,538 31,635 32,171 32,913 33,871 34,153 34,661 37,078
335,225 351,889 373,560 396,399 418,412 439,828 461,787 474,003 487,591 525,929
Actuarial Accrued Liability (AAL) Entry-Age
(b)
$ 16,777,922 16,982,449 16,991,963 17,099,527 17,199,688 17,514,898 17,812,441 17,829,220 18,375,797 20,085,695
895,324 910,256 924,365 967,409 988,883 1,035,935 1,081,184 1,108,658 1,156,997 1,207,955
24,966 24,904 24,913 25,690 25,533 25,674 25,905 25,714 25,543 25,838
308,862 335,792 343,428 350,298 376,740 407,607 424,724 440,664 458,188 482,619
Unfunded AAL/ (Funded Excess)
(b-a)
$
4,517,327
4,852,645
4,615,843
4,423,878
4,345,170
4,426,713
4,400,395
4,348,001
4,819,175
5,702,095
184,409 182,988 158,915 162,132 154,329 170,149 176,138 177,626 195,566 165,759
(4,024)
(4,577) (5,624) (5,945) (6,638) (7,239) (7,966) (8,439) (9,118) (11,240)
(26,363) (16,097) (30,132) (46,101) (41,672) (32,221) (37,063) (33,339) (29,403) (43,310)
Funded Ratio (a/b)
73.1 % $ 71.4 72.8 74.1 74.7 74.7 75.3 75.6 73.8 71.6
79.4 79.9 82.8 83.2 84.4 83.6 83.7 84.0 83.1 86.3
116.1 118.4 122.6 123.1 126.0 128.2 130.7 132.8 135.7 143.5
108.5 104.8 108.8 113.2 111.1 107.9 108.7 107.6 106.4 109.0
Annual Covered Payroll
(c)
2,414,884 2,335,773 2,315,625 2,352,920 2,384,358 2,546,492 2,634,129 2,611,965 2,612,773 2,477,691
n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
3,815 3,867 3,850 3,764 3,875 3,830 3,844 3,833 3,798 3,746
51,898 52,807 53,628 54,272 57,401 59,695 60,572 60,532 61,544 63,421
128
Unfunded AAL/ (Funded Excess) as Percentage of Covered Payroll
[(b-a)/c]
187.1 % 207.8 199.3 188.0 182.2 173.8 167.1 166.5 184.4 230.1
n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
(105.5) (118.4) (146.1) (157.9) (171.3) (189.0) (207.2) (220.2) (240.1) (300.1)
(50.8) (30.5) (56.2) (84.9) (72.6) (54.0) (61.2) (55.1) (47.8) (68.3)
(continued)
Actuarial Section
Schedules of Funding Progress - Defined Benefit Plans
(in thousands)
Georgia Military Pension Fund2
Actuarial Valuation
Date
6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021
$
** * * ** *
Actuarial Value of Plan Assets
(a)
10,087 12,131 14,264 16,446 18,414 20,604 23,362 26,119 29,083 33,687
Actuarial Accrued Liability (AAL) Entry-Age
(b)
$
28,231
30,056
31,815
35,213
38,211
40,731
43,622
45,790
50,329
53,591
Unfunded AAL/ (Funded Excess)
(b-a)
$
18,144
17,925
17,551
18,767
19,797
20,127
20,260
19,671
21,246
19,904
Funded Ratio (a/b)
35.7 % 40.4 44.8 46.7 48.2 50.6 53.6 57.0 57.8 62.9
Annual Covered Payroll
(c)
n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Unfunded AAL/ (Funded Excess) as Percentage of Covered Payroll
[(b-a)/c]
n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
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.
Note: Payroll data on page 128 for fiscal year 2021 will not equal that which is presented in the Financial section in the Schedules of Employers' and Nonemployer Contributions on pages 67-68. 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.
*Reflects change in assumed rate of return **Reflects changes in actuarial assumptions
129
Actuarial Section
Schedule of Retirees Added to and Removed from Rolls
ERS
Year Ended 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Added to Rolls
Removed from Rolls Roll End of Year
Number 2,956 3,664 2,440 2,656 2,572 2,630 2,612 2,777 2,553 2,724
Annual Allowances (in thousands)
$
71,464
88,855
51,178
54,003
51,031
45,833
50,005
58,673
53,509
58,426
Number 1,305 1,176 1,059 1,350 1,342 1,420 1,422 1,357 1,606 1,893
Annual Allowances (in thousands) $ 27,696
26,334 22,997 30,927 30,724 32,372 33,530 32,574 38,185 45,432
Number 41,860 44,348 45,729 47,035 48,265 49,475 50,665 52,085 53,032 53,863
Annual Allowances (in thousands) $ 1,198,180 1,260,701 1,288,882 1,311,958 1,332,265 1,345,726 1,362,201 1,388,300 1,403,624 1,416,618
% Increase in Annual Allowance
3.8 % 5.2 2.2 1.8 1.5 1.0 1.2 1.9 1.1 0.9
Average Annual Allowances
$
28,624
28,427
28,185
27,893
27,603
27,200
26,886
26,655
26,467
26,300
PSERS
Year Ended 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Added to Rolls
Removed from Rolls Roll End of Year
Number 1,133 1,298 1,345 1,247 1,363 1,253 1,258 1,301 1,165 1,368
Annual Allowances (in thousands)
$
3,192
3,803
3,749
3,482
3,927
4,322
5,436
5,319
5,679
4,185
Number 684 650 647 690 763 756 885 795 932 1,087
Annual Allowances (in thousands) $ 2,834
2,738 2,604 2,679 2,890 2,927 3,354 3,101 3,484 4,195
Number 15,049 15,697 16,395 16,952 17,552 18,049 18,422 18,928 19,161 19,442
Annual Allowances (in thousands)
$
54,117
55,182
56,327
57,130
58,167
59,562
61,644
63,862
66,057
66,047
% Increase in Annual Allowance
0.7 % 2.0 2.1 1.4 1.8 2.4 3.5 3.6 3.4 (0.0)
Average Annual Allowances
$
3,596
3,515
3,436
3,370
3,314
3,300
3,346
3,374
3,447
3,397
GJRS
Added to Rolls
Removed from Rolls Roll End of Year
Year Ended 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Number 22 42 23 21 13 62 23 52 34 43
Annual Allowances (in thousands)
$
1,732
2,763
1,175
1,416
919
5,304
1,950
3,435
2,060
3,669
Number 8
13 9
11 5
10 12 12 19
9
Annual Allowances (in thousands) $ 405
629 326 561 269 771 558 562 1,058 402
Number 234 263 277 287 295 347 358 398 413 447
Annual Allowances (in thousands)
$
14,827
16,961
17,810
18,665
19,315
23,848
25,240
28,113
29,115
32,382
% Increase in Annual Allowance
9.8 % 14.4
5.0 4.8 3.5 23.5 5.8 11.4 3.6 11.2
Average Annual Allowances
$
63,363
64,490
64,296
65,035
65,475
68,726
70,503
70,636
70,496
72,443
(continued) 130
Actuarial Section
Schedule of Retirees Added to and Removed from Rolls
LRS
Added to Rolls
Removed from Rolls Roll End of Year
Year Ended 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Number 10 32 6 13 9 13 11 14 14 30
Annual Allowances (in thousands)
$
66
200
30
87
58
80
57
82
95
207
Number 11 15 7 12 13 6 7 12 14 21
Annual Allowances (in thousands)
$
82
140
61
112
111
74
56
96
123
157
Number 243 260 259 260 256 263 267 269 269 278
Annual Allowances (in thousands) $ 1,774
1,834 1,803 1,778 1,725 1,731 1,732 1,718 1,690 1,740
% Increase in Annual Allowance
(0.9) % 3.4 (1.7) (1.4) (3.0) 0.3 0.4 (0.8) (1.6) 3.0
Average Annual Allowances $ 7,300
7,054 6,961 6,838 6,738 6,582 6,489 6,386 6,283 6,259
GMPF
Added to Rolls
Removed from Rolls Roll End of Year
Year Ended 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Number 95 83 62 54 79 83 97 91 89 147
Annual Allowances (in thousands)
$
106
87
68
55
82
90
106
94
93
152
Number 3 5 5 6 9
11 7
18 17
9
Annual Allowances (in thousands)
$
3
5
6
5
9
11
8
20
20
9
Number 660 738 795 843 913 985
1,075 1,148 1,220 1,358
Annual Allowances (in thousands)
$
720
802
864
914
987
1,066
1,164
1,238
1,311
1,454
% Increase in Annual Allowance
16.7 % 11.4
7.7 5.8 8.0 8.0 9.2 6.4 5.9 10.9
Average Annual Allowances $ 1,091
1,087 1,087 1,084 1,081 1,082 1,083 1,078 1,075 1,071
SEAD-OPEB is a post-employment life insurance plan which does not have annuity payments.
131
Actuarial Section
Analysis of Change in Unfunded Accrued Liability (UAL)
ERS
Interest (7.30) 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 Programming modification Data changes Misc. changes
Total
2021
2020
2019
2018
2017
2016
2015
Amount of Increase (Decrease) (in millions)
2014
2013
2012
$
351.8 $
(524.9)
(664.4) (37.9) 31.4 7.7
(104.9) --
62.9 1,756.2
-- 5.0 --
$
882.9 $
317.4 $ (564.6)
59.8 13.3 41.6
9.3 9.5 -- -- 578.3 -- 6.5 0.1
471.2 $
321.2 $ (567.4)
108.6 (1.2) 40.7 9.6
(43.5) --
61.2 -- --
18.4 --
(52.4) $
327.6 $ (574.4)
(130.4) 2.6
58.7 12.4 53.5
-- 39.2 161.1
-- 15.3
8.1
(26.3) $
325.9 $ (551.0)
(48.6) 9.0
39.9 7.8
127.5 --
28.9 158.3
-- (16.2)
--
81.5 $
331.8 $ (514.7)
8.5 12.8 43.6
7.8 (0.6)
-- 28.4
-- -- 3.6 0.1
(78.7) $
346.2 $ (419.4)
(198.9) 13.9 50.8 10.3 (89.6) -- -- 80.4 -- 14.4 (0.1)
(192.0) $
363.9 $ (321.7)
(228.9) 60.4 45.5 9.3
(159.4) -- -- -- --
(6.0) 0.1
(236.8) $
338.8 $ (239.1)
253.7 20.6
103.7 14.1 (46.8)
(128.3) -- -- --
18.7 (0.1)
335.3 $
299.2 (147.7)
396.3 15.5 93.8 12.1 (74.2) --
(118.8) --
26.3 12.9 12.6
528.0
PSERS
Interest (7.30) added to previous UAL
Accrued liability contribution Experience:
Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Method changes Amendments COLAs Assumption changes Lawsuit Data Changes Misc. changes
Total
Amount of Increase (Decrease) (in thousands)
$ 14,276.3 $ 12,966.7 $ 12,858.1 $ 12,591.0 $ 11,574.7 $ 12,159.9 $ 11,918.7 $ 13,724.1 $ 13,830.7 $ (17,933.0) (20,400.5) (18,303.2) (17,584.7) (15,278.9) (17,394.7) (17,704.8) (15,915.4) (12,497.7)
12,474.4 (4,843.8)
(47,877.0) (5,890.6) 337.8 2,305.0 -- 14,281.2 (1,604.1) 12,742.1 -- (444.5) --
3,100.0 (2,626.4)
814.7 3,516.1
-- -- (13,371.6) 34,145.2 -- -- (204.7)
5,770.0 (1,104.1)
(859.2) 3,701.8
-- 12,551.0 (8,832.0)
-- 110.9
-- (4,405.3)
(8,805.0) (2,859.3) (1,024.6) 3,206.8
-- 16,292.1 (6,469.5) 10,995.2
-- -- (352.4)
(3,247.0) (308.6) (879.7) 4,334.7 --
15,892.7 (6,786.4) 10,547.5
-- -- (29.5)
$ (29,806.8) $ 17,939.5 $ 1,488.0 $ 5,989.6 $ 15,819.5 $
841.0 (643.8) (228.2) 2,798.1
-- -- (5,492.0) -- -- -- 157.2
(12,207.0) 414.9
2,618.5 2,875.9
-- -- (14,772.9) 30,030.0 -- -- 43.0
(14,071.0) 1,286.7 2,580.8 2,786.0 -- --
(14,398.9) -- -- --
(64.9)
13,868.0 (381.9) 4,772.4 2,757.7
(9,259.0) --
(14,813.1) -- -- --
301.7
21,922.0 (1,149.5) 4,974.5 2,783.8
-- -- (20,664.9) -- -- -- 2,586.9
(7,802.5) $ 3,216.3 $ (24,072.6) $ (1,421.2) $ 18,083.4
(continued) 132
Actuarial Section
Analysis of Change in Unfunded Accrued Liability (UAL)
GJRS
Interest (7.30) 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 Data changes Programming modification Misc. changes
Total
2021
2020
2019
2018
2017
2016
2015
Amount of Increase (Decrease) (in thousands)
2014
2013
2012
$ (2,146.4) $ (2,433.7) $ (2,705.6) $ (2,416.5) $ (3,125.4) $ (3,457.6) $ (2,259.9) $ (1,207.3) $ (1,977.2) $ (2,774.8)
2,355.8
2,367.2
3,085.8
2,005.4
1,245.0
(746.2)
3,754.1
5,803.3
5,187.8
4,710.8
(24,103.0) 1,897.6 4,751.0 1,588.3 (4,724.8) -- 710.0 4,255.0 1,509.0 -- --
$ (13,907.5) $
1,470.0 1,109.5 (1,383.9)
492.4 (4,160.2)
-- -- 5,058.9 1,416.2 -- --
3,936.4 $
2,721.4 1,456.8 1,100.3 1,774.9 (5,839.7)
-- 645.9
-- 1,484.4
-- --
3,724.2 $
(4,346.6) 543.1 (162.6) 338.7
(5,756.8) --
993.1 3,696.0
-- -- 263.6
(4,842.6) $
(1,538.9) (339.7) 2,307.0 2,353.1 187.7 -- 3,345.4 3,615.6 -- -- 1,402.0
9,451.8 $
562.3 1,530.2
872.4 1,190.9
209.7 --
3,179.6 -- -- --
1,086.9
(5,855.8) 639.6 (370.0)
1,539.1 (8,848.5)
-- -- (5,030.9) -- -- 464.1
(6,807.0) 2,138.5 (5,962.8) 1,272.3 (10,382.5)
-- -- -- -- -- 1,110.1
4,949.6 533.8
3,941.4 3,138.0 (4,620.6) (6,827.0)
-- -- -- 4,606.4 1,333.8
8,638.5 376.9
2,080.7 442.3
(4,536.5) --
(870.0) -- --
1,648.9 917.5
4,428.2 $ (15,968.2) $ (14,035.4) $ 10,266.0 $ 10,634.3
LRS
Interest (7.30) added to previous UAL Accrued liability contribution Experience:
Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Method changes Amendments COLAs Assumption changes Data changes Misc. changes
Total
Amount of Increase (Decrease) (in thousands)
$
(665.6) $
405.5
(1,734.8) (43.5) (65.1) 96.6 -- 99.6
(431.8) 220.2
(2.8) --
$ (2,121.7) $
(616.1) $ 352.1
123.6 (19.8) (119.1)
3.7 -- -- (444.3) 60.4 (19.8) --
(679.3) $
(581.5) $ 315.2
245.1 29.6
(180.7) 57.2 --
101.9 (457.4)
-- (3.6) 0.9
(473.3) $
(535.7) $ 322.9
(342.2) 118.3 (175.2)
16.7 --
67.6 (462.8) 229.1
-- 34.8
(726.5) $
(497.8) $ 250.3
(129.2) 245.9 (257.7)
99.2 --
50.4 (458.3) 223.7
-- (127.9)
(601.5) $
(445.9) $ 338.3
24.1 (66.1) (198.9) 26.8
-- 51.5 (418.2)
-- -- (4.7)
(693.1) $
(421.9) $ 173.4
(343.3) $ 161.9
(491.6) (50.8) (10.1) 35.1 -- --
(452.6) 852.3
-- 46.2
(320.0) $
(576.5) 323.8 (347.5) 135.2
-- -- (470.8) -- -- 69.9
(1,047.3) $
(301.8) $ (62.4)
513.9 (29.6) 17.4 144.5 (418.0) (488.1)
-- -- -- 71.1
(553.1) $
(302.5) 33.9
829.0 19.1 (84.3) 16.9 --
(549.7) -- -- --
46.4
8.8
(continued) 133
Actuarial Section
Analysis of Change in Unfunded Accrued Liability (UAL)
GMPF
Interest (7.30) added to previous UAL Accrued liability contribution Experience:
Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Method changes Assumption changes Data changes Misc. changes
Total
2021
2020
2019
2018
2017
2016
Amount of Increase (Decrease) (in thousands)
2015
2014
2013
2012
$ 1,550.9 $ 1,436.0 $ 1,479.0 $ 1,489.4 $ 1,484.8 $ 1,407.5 $ 1,316.3 $ 1,344.3 $ 1,360.8 $ 1,354.9
(2,381.5)
(2,348.7)
(2,285.4)
(2,140.6)
(1,747.5)
(1,698.6)
(1,765.6)
(1,775.3)
(1,661.5)
(1,502.4)
(1,443.0) 34.0
(136.4) 277.1
-- 696.7
61.1 (0.4)
$ (1,341.5) $
47.0 (36.1) 78.5 331.6
-- 2,313.3 (243.0)
(3.9)
1,574.7 $
68.0 (20.1) (17.0) 179.1
-- -- 10.4 (3.0)
(589.0) $
(181.0) 40.7
143.1 208.9
-- 570.2
-- 2.6
133.3 $
(50.0) (109.2)
11.0 138.9
-- 537.6
-- 64.2
329.8 $
59.0 119.3 233.3 165.1
-- -- -- 744.4
1,030.0 $
(203.0) 126.1 120.5 236.9
-- 985.8
-- 398.7
1,215.7 $
(247.0) 88.8 (87.9)
142.6 -- -- --
161.1
(373.4) $
39.3 80.2 186.4 137.8 (393.0)
-- -- 30.6
(219.4) $
107.0 68.3 17.9
127.1 -- -- --
(93.6)
79.2
SEAD-OPEB: Data is not available.
134
Actuarial Section
Solvency Test Results
(in thousands)
ERS
Actuarial Valuation as of 6/30
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
PSERS
Actuarial Accrued Liability for:
Active Member Contributions
Active Member
Retirants &
(Employer
Beneficiaries Funded Portion)
Valuation Assets
(1)
(2)
(3)
$ 460,861 $ 11,420,011 $ 4,897,050 $ 12,260,595
405,841
11,935,364
4,641,244
12,129,803
385,058
12,108,737
4,498,168
12,376,120
367,462
12,520,321
4,211,744
12,675,649
368,281
12,592,980
4,238,427
12,854,518
368,935
12,729,977
4,415,986
13,088,185
372,375
12,927,796
4,512,270
13,412,046
371,147
13,077,253
4,380,820
13,481,219
372,510
13,406,538
4,596,749
13,556,622
371,048
14,782,338
4,932,309
14,383,600
Actuarial Valuation as of 6/30
GJRS
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Actuarial Accrued Liability for:
Active Member Contributions
Retirants & Beneficiaries
(1)
(2)
$
16,917 $ 537,284
17,016
549,796
16,995
566,344
17,196
585,471
17,413
609,807
18,077
640,197
18,570
674,222
19,109
695,624
19,898
721,554
20,188
763,615
Active Member (Employer
Funded Portion)
Valuation Assets
(3)
$ 341,123 $ 710,915
343,444
727,268
341,026
765,450
364,742
805,277
361,663
834,554
377,661
865,786
388,392
905,046
393,925
931,032
415,545
961,431
424,152
1,042,196
Actuarial Valuation as of 6/30
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Actuarial Accrued Liability for:
Active Member Contributions
Retirants & Beneficiaries
(1)
(2)
$
73,998 $ 141,880
73,949
162,364
80,007
162,527
84,170
174,147
91,991
180,107
84,841
220,738
88,890
231,811
85,722
256,060
89,842
267,433
82,116
303,301
Active Member (Employer
Funded Portion)
Valuation Assets
(3)
$
92,984 $ 335,225
99,479
351,889
100,894
373,560
91,981
396,399
104,642
418,412
102,028
439,828
104,023
461,787
98,882
474,003
100,913
487,591
97,202
525,929
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 % 98.2 99.0 98.3 99.2 99.9
100.0 100.0
98.3 94.8
(3)
7.8 % -- -- -- -- -- 2.5 0.7 -- --
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)
45.9 % 46.7 53.4 55.5 57.3 54.9 54.6 54.9 52.9 60.9
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) 135
Actuarial Section
Solvency Test Results
(in thousands)
LRS
Actuarial Valuation as of 6/30
GMPF
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Actuarial Accrued Liability for:
Active Member Contributions
Retirants & Beneficiaries
(1)
(2)
$
3,185
$
2,951
3,430
3,287
3,630
3,543
3,862
3,664
4,007
3,628
19,200 19,623 19,006 19,873 19,202 19,382 19,048 19,204 18,936 20,179
Active Member (Employer
Funded Portion)
Valuation Assets
(3)
$
2,581
$
2,330
2,477
2,530
2,701
2,749
2,995
2,846
2,600
2,031
28,990 29,481 30,538 31,635 32,171 32,913 33,871 34,153 34,661 37,078
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
Actuarial Valuation as of 6/30
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
SEAD-OPEB
Actuarial Accrued Liability for:
Active Member Contributions
Retirants & Beneficiaries
(1)
(2)
$
--
$
17,518
--
19,396
--
21,389
--
24,075
--
26,337
--
28,867
--
30,964
--
33,435
--
37,021
--
39,880
Active Member (Employer
Funded Portion)
Valuation Assets
(3)
$ 10,713
$
10,660
10,426
11,138
11,874
11,864
12,658
12,355
13,308
13,711
10,087 12,131 14,264 16,446 18,414 20,604 23,362 26,119 29,083 33,687
Portion of Aggregate Accrued Liabilities Covered by Assets
(1)
(2)
(3)
n/a
57.6 %
-- %
n/a
62.5
--
n/a
66.7
--
n/a
68.3
--
n/a
69.9
--
n/a
71.4
--
n/a
75.4
--
n/a
78.1
--
n/a
78.6
--
n/a
84.5
--
Actuarial Valuation as of 6/30
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Actuarial Accrued Liability for:
Active Member Contributions
Active Member
Retirants &
(Employer
Beneficiaries Funded Portion)
Valuation Assets
(1)
$
--
--
--
--
--
--
--
--
--
--
(2)
(3)
$ 528,165 $ 176,452
586,228
168,558
621,502
166,518
621,426
148,321
652,291
180,078
693,118
183,468
735,214
183,943
772,657
174,082
757,612
146,920
791,437
139,809
$
818,284
907,831
1,037,901
1,046,559
1,028,541
1,121,251
1,189,462
1,233,856
1,256,718
1,566,821
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
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
n/a
100.0
100.0
n/a
100.0
100.0
n/a
100.0
100.0
136
Statistical Section
Georgia's Waterfalls
Amicalola Falls
Amicalola Falls
Amicalola Falls Loop Trail: 2.1 miles, difficult Amicalola Falls State Park is in central-north Georgia, near Dawsonville. Amicalola Falls drops over 730 feet, making it Georgia's tallest waterfall. It cascades in multiple tiers of white, misty water from a towering cliff in Georgia's Chattahoochee National Forest. This hike is a 1-mile journey to the crest of this enormous waterfall, grabbing stunning views from the top before descending alongside the falls along bridges and steep stairs. Stunning views of the surrounding mountains emerge on the trail's left side as the hike climbs in elevation, and the sounds of the nearby plunging waterfall become audible as the trail rises toward the crest. The hike descends and then reaches a paved pathway, crossing a bridge spanning the waterfall's upper third. The hike continues its descent, following stairs and landings and catching uninterrupted views of the waterfall and then parallels the waterfall's lower cascades, offering up-close views of the creek as it spills over tumbled boulders in small cascading waterfalls.
Learn more at atlantatrails.com
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 non-accounting data is taken from the System's internal sources except for information which is derived from the actuarial valuations. Due to the adoption of GASB 74 in FY2017, historical detail may not be complete for the Schedule of Revenue and Expense and will be added each year. Statistical information is not presented for SCJRF and DARF as both plans are immaterial, have no active members, and are closed to new members.
Fiduciary Funds Financial Trends
The following schedules have been included to help the readers 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 Principal Participating Employers Statistical Data as of June 30, 2022
Proprietary Fund
Schedule of Revenue and Expenses 10-year Schedule of Membership
139
Statistical Section
Additions by Source - Contribution/Investment Income
(in thousands)
ERS Member Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
$ 38,955 $ 32,423 $ 33,713 $ 31,961 $ 35,863 $ 37,130 $ 36,252 $ 35,837 $ 35,027 $ 36,130
358,992 418,807 505,668 583,082 613,201 639,302 638,989 634,108 606,919 611,410
--
10,945
12,495
12,484
12,080
12,865
10,220
9,749
9,048
8,313
1,495,849 2,021,748 474,147 141,292 1,475,626 1,166,013 873,404 703,840 3,843,581 (1,855,595)
--
--
10
10
10
10
10
10
10
10
Total Additions to (Deductions from) Fiduciary Net Position
PSERS Member Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other
$1,893,796 $2,483,923 $1,026,033 $ 768,829 $2,136,780 $1,855,320 $1,558,875 $1,383,544 $4,494,585 $(1,199,732)
$ 1,538 $ 1,659 $ 1,800 $ 1,925 $ 2,084 $ 2,162 $ 2,256 $ 2,338 $ 2,222 $ 2,256
24,829
--
--
--
--
--
--
--
--
--
--
27,160
28,461
28,580
26,277
29,276
30,263
32,496
30,264
32,491
88,067 123,799
30,129
9,809
97,715
78,418
60,553
49,913 277,705 (138,145)
--
--
--
--
--
--
--
--
--
--
Total Additions to (Deductions from) Fiduciary Net Position
GJRS Member Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other
$ 114,434 $ 152,618 $ 60,390 $ 40,314 $ 126,076 $ 109,856 $ 93,072 $ 84,747 $ 310,191 $ (103,398)
$ 4,408 $ 4,731 $ 5,061 $
2,279
1,373
2,696
--
1,002
1,564
42,104
60,012
14,697
--
--
--
5,507 $ 4,754 2,869 5,055
--
4,906 $ 4,081 2,603 49,259
--
4,910 $ 4,725 1,841 39,877
--
5,469 $ 3,117 2,137 30,827
--
5,005 $ 5,190 $ 5,466
4,022
3,830
7,585
2,442
2,240
2,377
25,414 140,103
(69,334)
--
--
--
Total Additions to (Deductions from) Fiduciary Net Position
LRS Member Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other
$ 48,791 $ 67,118 $ 24,018 $ 18,185 $ 60,849 $ 51,353 $ 41,550 $ 36,883 $ 151,363 $ (53,906)
$
373 $
282 $
327 $
128
45
--
--
--
--
3,573
4,969
1,189
--
--
--
328 $ -- --
363 --
327 $ -- --
3,741 --
323 $ -- --
2,962 --
339 $ -- --
2,228 --
325 $ -- --
1,824 --
290 $ -- --
9,928 --
344 -- --
(4,848) --
Total Additions to (Deductions from) Fiduciary Net Position
$ 4,074 $ 5,296 $ 1,516 $
691 $ 4,068 $ 3,285 $ 2,567 $ 2,149 $ 10,218 $ (4,504)
(continued) 140
Statistical Section
Additions by Source - Contribution/Investment Income
(in thousands)
GMPF
Member Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
$
-- $
-- $
-- $
-- $
-- $
-- $
1,703
1,892
1,893
1,990
2,018
2,377
--
--
--
--
--
--
1,374
2,179
585
240
2,262
1,928
--
--
--
--
--
--
-- $ 2,537
-- 1,683
--
-- $ 2,611
-- 1,485
--
-- $ 2,684
-- 8,709
--
-- 2,697
-- (4,693)
--
Total Additions to (Deductions from) Fiduciary Net Position
SEAD - OPEB
Member Contributions Employer Contributions Insurance Premiums Net Investment Income (Loss) Other
$ 3,077 $ 4,071 $ 2,478 $ 2,230 $ 4,280 $ 4,305 $ 4,220 $ 4,096 $ 11,393 $ (1,996)
$
-- $
-- $
--
--
5,075
4,502
108,148 154,868
--
--
-- $ -- 4,187 37,876 --
-- $
-- $
-- $
--
1
--
3,931
3,793
3,599
12,559 125,550 101,542
--
--
--
-- $ 5 3,328 79,193 --
-- $ -- 3,088 65,248 --
-- -- 2,817 362,663 --
$
--
--
2,641
(179,369)
--
Total Additions to (Deductions from) Fiduciary Net Position
Defined Contribution Plan - GDCP
Member Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other
$ 113,223 $ 159,370 $
$ 16,676 $ 16,290 $
--
--
--
--
137
1,368
--
--
42,063 $
15,655 $ -- --
1,326 --
16,490 $ 129,344 $ 105,141 $
14,708 $ -- --
5,591 --
14,921 $ -- --
(1,056) --
14,585 $ -- --
(356) --
82,526 $
14,578 $ -- --
8,324 --
68,336 $ 365,480 $ (176,728)
14,658 $ -- --
9,078 --
15,759 $ -- --
(1,867) --
16,228 -- --
(7,992) --
Total Additions to (Deductions from) Fiduciary Net Position
$ 16,813 $ 17,658 $ 16,981 $ 20,299 $ 13,865 $ 14,229 $ 22,902 $ 23,736 $ 13,892 $ 8,236
(continued) 141
Statistical Section
Additions by Source - Contribution/Investment Income
(in thousands)
Defined Contribution Plan - 401(k)
Member Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
$ 44,428 $ 53,724 $ 64,870 $ 79,422 $ 93,608 $ 110,848 $ 119,770 $ 129,639 $ 132,123 $ 146,280
18,279
21,513
25,615
29,982
36,761
43,176
47,170
51,138
52,023
57,538
--
--
--
--
--
--
--
--
--
--
52,835
78,583
17,665
5,281
88,771
72,671
61,106
40,850 371,775 (222,604)
948
1,122
1,298
1,429
1,584
1,744
544
426
567
583
Total Additions to (Deductions from) Fiduciary Net Position
Defined Contribution Plan - 457
Member Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other
$ 116,490 $ 154,942 $ 109,448 $ 116,114 $ 220,724 $ 228,439 $ 228,590 $ 222,053 $ 556,488 $ (18,203)
$ 18,753 $ 17,623 $ 17,445 $ 17,413 $ 18,899 $ 20,133 $ 20,264 $ 20,216 $ 19,566 $ 21,125
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
55,737
73,746
18,991
7,855
59,541
46,748
39,100
25,563 162,958
(83,190)
--
--
--
--
--
--
53
25
61
46
Total Additions to (Deductions from) Fiduciary Net Position
Suvivor's Benefit Fund - SBF
Member Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other
$ 74,490 $ 91,369 $ 36,436 $ 25,268 $ 78,440 $ 66,881 $ 59,417 $ 45,804 $ 182,585 $ (62,019)
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
n/a
--
--
--
n/a
n/a
n/a
n/a
n/a
n/a
n/a
8,701
49,353
(25,611)
n/a
n/a
n/a
n/a
n/a
n/a
n/a
--
--
--
Total Additions to (Deductions from)
Fiduciary Net Position
n/a
n/a
n/a
n/a
n/a
n/a
n/a $ 8,701 $ 49,353 $ (25,611)
142
Statistical Section
Deductions by Type
(in thousands)
ERS
Benefit Payments
Fiscal Year Service
2013 $ 1,007,816
2014
1,051,993
2015
1,076,676
2016
1,092,909
2017
1,130,996
2018
1,146,226
2019
1,171,942
2020
1,205,502
2021
1,164,687
2022
1,218,706
Partial Lump-Sum
Option $ 35,933
24,567 24,391 19,154 19,765 21,624 20,535 19,108 15,991 14,277
Disability $ 145,152
146,245 147,418 147,706 151,772 152,469 155,193 159,443 154,948 161,636
Survivor Benefits $ 80,300 83,193 85,794 87,843 91,750 92,979 96,086 100,392 99,149 108,285
Net
Total Benefit Administrative
Payments
Expenses
Refunds
$ 1,269,201 $ 12,889 $ 7,390
1,305,998
7,440
8,757
1,334,278
7,872
7,450
1,347,633
8,506
7,087
1,394,283
8,732
9,033
1,413,298
8,056
7,585
1,443,756
7,142
7,691
1,484,445
7,641
6,644
1,434,775
7,587
6,604
1,502,904
7,577
7,182
Total Deductions
from Fiduciary Net Position
$1,289,480
1,322,195
1,349,600
1,363,226
1,412,048
1,428,939
1,458,589
1,498,730
1,448,966
1,517,663
PSERS
Fiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Service $ 47,805
48,911 49,704 50,572 52,012 54,257 56,008 58,412 58,744 60,307
Benefit Payments
Disability $ 5,328
5,280 5,227 5,172 5,117 5,114 4,991 5,000 4,850 4,805
Survivor Benefits $ 1,908
1,998 2,041 2,160 2,249 2,449 2,638 2,678 2,821 3,091
Total Benefit Payments
$ 55,041 56,189 56,972 57,903 59,378 61,820 63,637 66,090 66,415 68,203
Net Administrative
Expenses
$
2,021
1,450
1,545
1,321
1,308
1,331
1,377
1,424
1,421
1,523
Refunds $ 492
514 456 465 1,031 701 609 572 633 614
Total Deductions
from Fiduciary Net Position
$ 57,554
58,153
58,973
59,689
61,717
63,852
65,623
68,086
68,469
70,340
GJRS
Fiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Service $ 14,273
15,305 16,084 16,677 19,349 22,239 24,642 26,203 27,870 30,881
Benefit Payments
Disability $ 112
112 112 112 114 117 119 120 117
85
Survivor Benefits $ 1,865
2,024 2,169 2,222 2,321 2,578 2,701 2,940 2,971 3,084
Total Benefit Payments
$ 16,250 17,441 18,365 19,011 21,784 24,934 27,462 29,263 30,958 34,050
Net Administrative
Expenses
$
313
754
819
754
728
794
820
849
846
893
Refunds $ 105
22 772 261 166 150 553 213
63 23
Total Deductions
from Fiduciary Net Position
$ 16,668
18,217
19,956
20,026
22,678
25,878
28,835
30,325
31,867
34,966
(continued) 143
Statistical Section
Deductions by Type
(in thousands)
LRS
Benefit Payments
Fiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Service $ 1,376
1,336 1,315 1,294 1,323 1,347 1,383 1,362 1,293 1,369
Survivor Benefits
$
448
465
441
429
440
425
473
433
427
449
Total Benefit Payments
$ 1,824 1,801 1,756 1,724 1,763 1,772 1,856 1,795 1,720 1,818
Net Administrative
Expenses
$
119 $
152
169
313
224
283
290
305
311
327
Refunds 88 30 26 38 75 22 70 21 42 33
Total Deductions
from Fiduciary Net Position
$ 2,031
1,983
1,951
2,075
2,062
2,077
2,216
2,121
2,073
2,178
GMPF
Fiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Benefit Payments
Service*
$
772
841
896
963
1,042
1,138
1,221
1,297
1,428
1,527
Total Benefit Payments
$
772
841
896
963
1,042
1,138
1,221
1,297
1,428
1,527
Net Administrative
Expenses
Total Deductions
from Fiduciary Net Position
$
31
$
803
110
951
121
1,017
262
1,225
244
1,286
225
1,363
235
1,456
249
1,546
255
1,683
266
1,793
*The only type of retirement in GMPF is a service retirement. SEAD-OPEB
Fiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Benefit Payments
Death Benefits** $ 28,482
28,891 32,979 33,911 36,058 36,249 37,416 44,754 54,680 55,053
Total Benefit Payments
$ 28,482 28,891 32,979 33,911 36,058 36,249 37,416 44,754 54,680 55,053
Net Administrative
Expenses
Total Deductions
from Fiduciary Net Position
$
203 $ 28,685
414
29,305
428
33,407
599
34,510
576
36,634
681
36,930
716
38,132
720
45,474
697
55,377
755
55,808
**The only type of benefit in SEAD-OPEB is a death benefit.
144
(continued)
Statistical Section
Deductions by Type
(in thousands)
Defined Contribution Plan - GDCP Benefit Payments
Fiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Periodic Payments
$
9
9
--
--
--
--
10
7
9
9
Total Benefit Payments
$
9
9
--
35
--
--
10
7
9
9
Net Administrative
Expenses $ 1,160 $
991 990 766 785 852 882 913 902 987
Refunds 14,415 17,721 22,340 11,911 11,544 10,080 10,931 10,510 10,701 10,069
Total Deductions
from Fiduciary Net Position
$ 15,584
18,721
23,330
12,712
12,329
10,932
11,823
11,430
11,612
11,065
Defined Contribution Plan - 401(k)
Fiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Benefit Payments
Distributions
$ 57,351 43,133 95,428 46,508 55,866 64,103 79,644 92,355
127,352 137,593
Total Benefit Payments
$ 57,351 43,133 95,428 46,508 55,866 64,103 79,644 92,355
127,352 137,593
Net Administrative
Expenses
Total Deductions
from Fiduciary Net Position
$
2,457 $ 59,808
2,300
45,433
2,755
98,183
2,832
49,340
3,096
58,962
3,639
67,742
3,431
83,075
3,816
96,171
3,554
130,906
3,437
141,030
Defined Contribution Plan - 457
Fiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Benefit Payments
Distributions
$ 63,388 45,807 50,479 43,288 38,872 40,690 42,081 40,067 52,207 50,440
Total Benefit Payments
$ 63,388 45,807 50,479 43,288 38,872 40,690 42,081 40,067 52,207 50,440
Net Administrative
Expenses
Total Deductions
from Fiduciary Net Position
$
996 $ 64,384
812
46,619
866
51,345
820
44,108
789
39,661
442
41,132
724
42,805
745
40,812
671
52,878
585
51,025
145
(continued)
Statistical Section
Deductions by Type
(in thousands)
Survivors' Benefit Fund Benefit Payments
Fiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Death Benefits
n/a n/a n/a n/a n/a n/a n/a -- -- --
Total Benefit Payments n/a n/a n/a n/a n/a n/a n/a -- -- --
Net Administrative
Expenses n/a n/a n/a n/a n/a n/a n/a -- -- --
Total Deductions
from Fiduciary Net Position
n/a
n/a
n/a
n/a
n/a
n/a
n/a
--
-- --
146
Statistical Section
Changes in Fiduciary Net Position
(in thousands)
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
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
$1,893,796 $2,483,923 $1,026,033 $ 768,829 $2,136,780 $1,855,320 $1,558,875 $1,383,544 $4,494,585 $(1,199,732)
1,289,480 1,322,195 1,349,600 1,363,226 1,412,048 1,428,939 1,458,589 1,498,730 1,448,966 1,517,663
(5,009)
--
--
--
--
--
--
--
--
--
599,307 1,161,728 (323,567) (594,397) 724,732 426,381 100,286 (115,186) 3,045,619 (2,717,395)
114,434 57,554 -- 56,880
152,618 58,153 -- 94,465
60,390 58,973
-- 1,417
40,314 59,689
-- (19,375)
126,076 61,717 -- 64,359
109,856 63,852 -- 46,004
93,072 65,623
-- 27,449
84,747 68,086
-- 16,661
310,191 68,469 --
241,722
(103,398) 70,340 --
(173,738)
48,791 16,668
-- 32,123
67,118 18,217
-- 48,901
24,018 19,956
-- 4,062
18,185 20,026
-- (1,841)
60,849 22,678
-- 38,171
51,353 25,878
-- 25,475
41,550 28,835
-- 12,715
36,883 30,325
-- 6,558
151,363 31,867 --
119,496
(53,906) 34,966
-- (88,872)
4,074 2,031
-- 2,043
5,296 1,983
-- 3,313
1,516 1,951
-- (435)
691 2,075
-- (1,384)
4,068 2,062
-- 2,006
3,285 2,077
-- 1,208
2,567 2,216
-- 351
2,149 2,121
-- 28
10,218 2,073 -- 8,145
(4,504) 2,178
-- (6,682)
3,077 803 --
2,274
4,071 951 --
3,120
2,478 1,017
-- 1,461
2,230 1,225
-- 1,005
4,280 1,286
-- 2,994
4,305 1,363
-- 2,942
4,220 1,456
-- 2,764
4,096 1,546
-- 2,550
11,393 1,683 -- 9,710
(1,996) 1,793
-- (3,789)
(continued) 147
Statistical Section
Changes in Fiduciary Net Position
(in thousands)
SEAD - OPEB
Total Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position
Defined Contribution Plan - GDCP
Total Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position
Defined Contribution Plan - 401(k)
Total Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position
Defined Contribution Plan - 457
Total Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position Survivors' Benefit Fund
Total Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
$ 113,223 $ 159,370 $
28,685
29,305
5,009
5
89,547 130,070
42,063 $ 33,407
2 8,658
16,490 $ 129,344 $ 105,141 $
34,510
36,634
36,930
2
--
--
(18,018) 92,710
68,211
82,526 $ 38,132
-- 44,394
68,336 $ 365,480 $ (176,728)
45,474
55,377
55,808
--
--
--
22,862 310,103 (232,536)
16,813 15,584
-- 1,229
17,658 18,721
-- (1,063)
16,981 23,330
-- (6,349)
20,299 12,712
-- 7,587
13,865 12,329
-- 1,536
14,229 10,932
-- 3,297
22,902 11,823
-- 11,079
23,736 11,430
-- 12,306
13,892 11,612
-- 2,280
8,236 11,065
-- (2,829)
116,490 59,808 -- 56,682
154,942 45,433 --
109,509
109,448 98,183 -- 11,265
116,114 49,340 -- 66,774
220,724 58,962 --
161,762
228,439 67,742 --
160,697
228,590 83,075 --
145,515
222,053 96,171 --
125,882
556,488 130,906
-- 425,582
(18,203) 141,030
-- (159,233)
74,490 64,384
-- 10,106
91,369 46,619
-- 44,750
36,436 51,345
-- (14,909)
25,268 44,108
-- (18,840)
78,440 39,661
-- 38,779
66,881 41,132
-- 25,749
59,417 42,805
-- 16,612
45,804 40,812
-- 4,992
182,585 52,878 --
129,707
(62,019) 51,025
-- (113,044)
n/a
n/a
n/a
n/a
n/a
n/a
n/a
8,701
49,353 (25,611)
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
n/a
8,701
49,353 (25,611)
148
Statistical Section
Number of Retirees
ERS Retirees
PSERS Retirees
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
0
10,000
20,000
30,000
54,530 54,059 53,249 52,275 50,863 49,632 48,449 47,180 45,819 44,546
40,000 50,000 60,000
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
0
GJRS Retirees
10,000
LRS Retirees
19,852 19,509 19,232 18,990 18,492 18,104 17,626 16,994 16,434 15,742
20,000
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
0
295 290 278 262
467 449 414 400 358 346
50 100 150 200 250 300 350 400 450 500
GMPF Retirees
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
269 269 267 263 257 260 259 259
281 278
210
220
230
240
250
260
270
280
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
0
1,472 1,362 1,223 1,148 1,076 985 915 844 795 739
200 400 600 800 1,000 1,200 1,400 1,600
149
Statistical Section
Average Monthly Payments to Retirees
ERS
$2,600
$2,400
$2,200
$2,000
$1,800
$1,600
$1,400
$1,200
$1,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
GJRS
$6,500
$6,000
$5,500
$5,000
$4,500
$4,000
$3,500
$3,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
GMPF
$100 $90 $80 $70 $60 $50 $40 $30 $20
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
PSERS
$320 $300 $280 $260 $240 $220 $200 $180
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
LRS
$650
$600
$550
$500
$450
$400
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
150
Statistical Section
Annual Benefit
$1,600,000
ERS Annual Benefit
$1,500,000
Thousands
$1,400,000
$1,300,000
$1,200,000
Thousands
$1,100,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
$35,000 $30,000
GJRS Annual Benefit
$25,000 $20,000
$15,000 $10,000
$5,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
GMPF Annual Benefit
Thousands
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Thousands
Thousands
$80,000
PSERS Annual Benefit
$70,000
$60,000
$50,000
$40,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
LRS Annual Benefit
$2,000
$1,800
$1,600
$1,400
$1,200
$1,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
151
Statistical Section
Withdrawal Statistics
ERS Withdrawals
9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000
0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
PSERS Withdrawals
7,000 6,000 5,000 4,000 3,000 2,000 1,000
0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
GJRS Withdrawals
14 12 10
8 6 4 2 0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
LRS Withdrawals
14 12 10
8 6 4 2 0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
ERS Average Withdrawal
$2,000 $1,900 $1,800 $1,700 $1,600 $1,500 $1,400 $1,300 $1,200 $1,100
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
PSERS Average Withdrawal
$340 $320 $300 $280 $260 $240 $220 $200 $180 $160
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
GJRS Average Withdrawal
$120,000 $110,000 $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000
$0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
LRS Average Withdrawal
$14,000 $12,000 $10,000
$8,000 $6,000 $4,000 $2,000
$0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Note: The GMPF Plan does not have a refund feature.
ERS Annual Withdrawal (in thousands)
$9,500 $9,000 $8,500 $8,000 $7,500 $7,000 $6,500 $6,000 $5,500 $5,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
PSERS Annual Withdrawal (in thousands)
$1,200 $1,000
$800 $600 $400 $200
$0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
GJRS Annual Withdrawal (in thousands)
$900 $800 $700 $600 $500 $400 $300 $200 $100
$0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
LRS Annual Withdrawal (in thousands)
$100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
152
Statistical Section
Average Monthly Benefit Payment for New Retirees - ERS
Years of Credited Service
10-15
16-20
21-25
26-30
Over 30
Total
2013
Average Monthly Benefit
$ 836.73 $ 1,183.19 $ 1,650.14 $ 2,120.33 $ 3,487.96 $ 2,088.46
Average Final Average Salary $ 3,391.36 $ 3,339.84 $ 3,411.24 $ 3,765.16 $ 4,659.17 $ 3,855.98
Number of Retirees
684
453
466
780
1,033
3,416
2014
Average Monthly Benefit
$ 769.91 $ 1,232.07 $ 1,527.47 $ 2,057.32 $ 3,242.25 $ 1,870.02
Average Final Average Salary $ 3,309.44 $ 3,337.66 $ 3,263.54 $ 3,718.37 $ 4,486.34 $ 3,699.86
Number of Retirees
483
306
311
477
542
2,119
2015
Average Monthly Benefit
$ 750.98 $ 1,224.00 $ 1,620.88 $ 2,068.82 $ 3,074.69 $ 1,837.97
Average Final Average Salary $ 3,269.25 $ 3,443.88 $ 3,547.63 $ 3,750.99 $ 4,536.68 $ 3,760.27
Number of Retirees
524
316
341
623
561
2,365
2016
Average Monthly Benefit
$ 759.54 $ 1,224.52 $ 1,760.28 $ 2,171.75 $ 2,996.81 $ 1,783.98
Average Final Average Salary $ 3,189.20 $ 3,376.84 $ 3,657.08 $ 3,935.01 $ 4,618.83 $ 3,764.34
Number of Retirees
559
340
330
530
466
2,225
2017
Average Monthly Benefit
$ 796.76 $ 1,204.27 $ 1,786.30 $ 2,109.53 $ 2,870.19 $ 1,732.36
Average Final Average Salary $ 3,479.90 $ 3,405.67 $ 3,850.73 $ 3,813.78 $ 4,595.25 $ 3,829.66
Number of Retirees
551
395
359
453
470
2,228
2018
Average Monthly Benefit
$ 794.94 $ 1,318.26 $ 1,679.64 $ 2,302.80 $ 2,879.55 $ 1,791.49
Average Final Average Salary $ 3,505.83 $ 3,674.56 $ 3,707.56 $ 4,154.11 $ 4,638.01 $ 3,950.06
Number of Retirees
570
389
306
525
476
2,266
2019
Average Monthly Benefit
$ 806.32 $ 1,332.96 $ 1,888.94 $ 2,269.75 $ 3,089.58 $ 1,852.26
Average Final Average Salary $ 3,624.77 $ 3,867.03 $ 4,173.06 $ 4,178.96 $ 4,954.06 $ 4,153.40
Number of Retirees
624
436
335
461
545
2,401
2020
Average Monthly Benefit
$ 790.83 $ 1,310.46 $ 1,755.20 $ 2,335.40 $ 3,234.98 $ 1,935.05
Average Final Average Salary $ 3,609.89 $ 3,733.97 $ 3,853.51 $ 4,268.19 $ 5,132.48 $ 4,167.37
Number of Retirees
469
368
341
441
501
2,120
2021
Average Monthly Benefit
$ 796.58 $ 1,418.00 $ 1,900.60 $ 2,530.98 $ 3,365.15 $ 2,011.77
Average Final Average Salary $ 3,746.21 $ 3,920.47 $ 4,121.21 $ 4,605.37 $ 5,274.73 $ 4,350.21
Number of Retirees
493
405
364
462
473
2,197
2022
Average Monthly Benefit
$ 709.09 $ 1,334.42 $ 1,965.53 $ 2,516.64 $ 3,317.22 $ 1,943.10
Average Final Average Salary $ 3,787.91 $ 3,960.88 $ 4,361.27 $ 4,733.49 $ 5,277.17 $ 4,415.42
Number of Retirees
430
353
352
378
379
1,892
(continued) 153
Statistical Section
Average Monthly Benefit Payment for New Retirees - PSERS
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 2017 Average Monthly Benefit Number of Retirees 2018 Average Monthly Benefit Number of Retirees 2019 Average Monthly Benefit Number of Retirees 2020 Average Monthly Benefit Number of Retirees 2021 Average Monthly Benefit Number of Retirees 2022 Average Monthly Benefit Number of Retirees
10-15
16-20
Years of Credited Service
21-25
26-30
Over 30
Total
$ 159.34 $ 232.10 $ 300.66 $ 360.75 $ 478.49 $ 245.72
580
255
175
113
133
1,256
$ 154.20 $ 227.41 $ 297.58 $ 345.98 $ 437.20 $ 233.71
603
268
147
121
131
1,270
$ 155.20 $ 225.02 $ 290.82 $ 360.11 $ 471.12 $ 233.25
568
254
166
105
99
1,192
$ 160.28 $ 232.09 $ 298.45 $ 358.11 $ 489.48 $ 242.18
529
273
454
103
103
1,162
$ 153.93 $ 226.90 $ 286.35 $ 348.16 $ 437.62 $ 228.12
515
230
126
78
104
1,053
$ 156.77 $ 228.48 $ 293.26 $ 363.46 $ 480.15 $ 238.68
508
241
148
91
102
1,090
$ 162.22 $ 225.88 $ 301.08 $ 366.63 $ 485.44 $ 245.95
486
266
162
109
100
1,123
$ 169.11 $ 237.94 $ 306.69 $ 376.31 $ 479.54 $ 257.59
424
230
119
73
124
970
$ 168.36 $ 232.23 $ 299.31 $ 382.30 $ 486.34 $ 262.55
454
270
185
94
147
1,150
$ 169.70 $ 241.02 $ 308.05 $ 372.07 $ 503.79 $ 258.35
500
298
177
101
119
1,195
Note: PSERS is not a final average pay plan.
(continued) 154
Statistical Section
Average Monthly Benefit Payment for New Retirees - GJRS
Years of Credited Service
10-15
16-20
21-25
26-30
Over 30
Total
2013
Average Monthly Benefit
$ 5,179.20 $ 5,844.29 $ 6,170.52 $ 7,954.14 $ 6,169.77 $ 6,132.24
Average Final Average Salary $ 9,271.48 $ 8,344.35 $ 8,370.72 $ 10,624.52 $ 8,864.27 $ 9,010.27
Number of Retirees
8
7
7
5
7
34
2014
Average Monthly Benefit
$ 2,989.92 $ 4,468.12 $ 6,496.50 $
Average Final Average Salary $ 6,265.39 $ 7,772.95 $ 8,998.48 $
Number of Retirees
6
2
7
-- $ 2,703.82 $ 4,470.15
-- $ 4,289.57 $ 7,166.46
--
3
18
2015
Average Monthly Benefit
$ 4,010.30 $ 6,317.44 $ 7,051.15 $ 7,589.28 $ 2,406.28 $ 6,267.69
Average Final Average Salary $ 6,937.39 $ 9,141.51 $ 9,751.01 $ 10,165.12 $ 3,222.98 $ 8,905.45
Number of Retirees
2
5
7
2
1
17
2016
Average Monthly Benefit
$
Average Final Average Salary $
Number of Retirees
0.00 $ 6,534.36 $ 8,121.58 $
0.00 $ 9,655.37 $ 11,204.04 $
0
6
2
-- $ 8,635.31 $ 7,120.51
-- $ 11,566.18 $ 10,211.83
--
1
9
2017
Average Monthly Benefit
$4,519.89
Average Final Average Salary $9,049.84
Number of Retirees
10
$ 6,690.09 $ 8,737.31 $ 5,895.46 $ 8,026.56 $ 6,964.60
$ 9,833.21 $ 12,013.62 $ 7,896.41 $ 10,750.81 $ 10,232.13
18
13
4
10
55
2018
Average Monthly Benefit
$ 6,056.07 $ 7,565.45 $ 7,700.44 $ 7,979.26 $
Average Final Average Salary $ 11,385.55 $ 11,096.74 $ 10,618.33 $ 10,687.46 $
Number of Retirees
3
5
7
2
-- $ 7,403.36
-- $ 10,902.57
0
17
2019
Average Monthly Benefit
$ 4,646.94 $ 6,293.69 $ 8,486.61 $ 7,795.06 $8,348.20
Average Final Average Salary $ 8,909.34 $ 9,278.67 $ 11,566.18 $ 11,014.40 $11,181.62
Number of Retirees
9
10
7
8
5
$ 6,878.64 $ 10,204.03
39
2020
Average Monthly Benefit
$ 4,438.61 $ 5,557.00 $ 7,647.49 $ 8,800.28 $ 9,205.45 $ 6,727.54
Average Final Average Salary $ 9,230.72 $ 10,079.17 $ 11,629.28 $ 11,787.15 $ 12,329.82 $ 10,805.40
Number of Retirees
4
6
5
2
3
20
2021
Average Monthly Benefit
$ 4,694.76 $ 7,567.54 $ 8,213.18 $ 7,598.85 $ 8,109.37 $ 7,518.43
Average Final Average Salary $ 8,627.67 $ 11,611.51 $ 11,133.07 $ 10,177.95 $ 10,861.73 $ 10,737.85
Number of Retirees
5
10
12
7
8
42
2022
Average Monthly Benefit
$ 5,644.09 $ 7,158.87 $ 8,329.52 $ 8,800.28 $ 7,179.60 $ 7,233.65
Average Final Average Salary $ 11,625.29 $ 10,448.48 $ 11,522.28 $ 11,787.15 $ 9,616.41 $ 10,930.39
Number of Retirees
5
6
5
2
4
22
(continued) 155
Statistical Section
Average Monthly Benefit Payment for New Retirees - LRS
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 2017 Average Monthly Benefit Number of Retirees 2018 Average Monthly Benefit Number of Retirees 2019 Average Monthly Benefit Number of Retirees 2020 Average Monthly Benefit Number of Retirees 2021 Average Monthly Benefit Number of Retirees 2022 Average Monthly Benefit Number of Retirees
8-14
15-19
Years of Credited Service
20-24
25-29
Over 29
Total
$ 308.15 $ 568.93 $ 670.94 $
14
4
2
-- $ 1,166.93 $ 497.03
--
3
23
$ 289.25 $ 480.21 $
3
1
-- $ --
-- $ --
-- $ 336.99
--
4
$ 341.03 $ 382.95 $ 642.84 $
5
1
3
-- $ 1,228.50 $ 588.51
--
2
11
$ 322.51 $ 524.09 $
5
2
-- $ --
-- $ --
-- $ 380.11
--
7
$ 362.52 $ 557.02 $ 740.79 $
6
3
2
-- $ --
-- $ 484.34
--
11
$ 323.56 $ 476.35 $ 719.16 $
5
3
1
-- $ --
-- $ 418.44
--
9
$ 358.24 $ 493.00 $ 658.44 $ 793.55 $
6
2
2
2
-- $ 503.28
--
12
$ 374.69 $ 494.79 $
5
3
-- $ 640.36 $
--
1
-- $ 444.25
--
9
$ 303.85 $ 568.87 $ 733.00 $ 922.17 $ 1,080.00 $ 539.53
10
3
3
3
1
20
$ 312.07 $ 648.00 $
9
1
-- $ --
-- $ --
-- $ 345.67
--
10
Note: LRS is not a final average pay plan.
(continued) 156
Statistical Section
Average Monthly Benefit Payment for New Retirees - GMPF
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 2017 Average Monthly Benefit Number of Retirees 2018 Average Monthly Benefit Number of Retirees 2019 Average Monthly Benefit Number of Retirees 2020 Average Monthly Benefit Number of Retirees 2021 Average Monthly Benefit Number of Retirees 2022 Average Monthly Benefit Number of Retirees
Note: GMPF is not a final average pay plan.
20-25
Years of Credited Service
26-30
Over 30
Total
$ 59.44 $ 89.55 $ 100.00 $ 88.29
18
22
42
82
$ 61.11 $ 90.53 $ 100.00 $ 91.02
9
19
31
59
$ 62.07 $ 94.10 $ 100.00 $ 86.99
15
16
20
51
$ 66.30 $ 89.29 $ 100.00 $ 85.07
27
14
30
71
$ 65.00 $ 89.05 $ 100.00 $ 91.09
11
21
37
69
$ 61.00 $ 87.39 $ 100.00 $ 91.17
10
23
44
77
$ 67.14 $ 91.11 $ 100.00 $ 87.38
21
36
23
80
$ 61.25 $ 89.29 $ 100.00 $ 86.49
20
21
33
74
$ 59.57 $ 90.91 $ 100.00 $ 85.09
35
33
47
115
$ 61.05 $ 89.17 $ 100.00 $ 78.98
57
24
37
118
157
Statistical Section
Retired Members by Retirement Type
ERS June 30, 2022
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
5,001 - 5,500
5,501 - 6,000
over 6,000
Service
4,126 9,051 7,630 5,767 4,569 3,479 2,685 2,207 1,689 1,441 1,151
754 1,824
Retirement Type
Disability Survivor
275
514
1,039
435
1,145
278
974
193
779
132
578
85
446
62
352
41
241
25
182
15
123
7
79
7
131
15
Totals
46,373
6,344
1,809
SGLI
4 -- -- -- -- -- -- -- -- -- -- -- --
4
PSERS June 30, 2022
Amount of Monthly Benefit
$
1 - 100
101 - 200
201 - 300
301 - 400
401 - 500
over 500
Totals
Retirement Type
Service Disability Survivor
116
4
236
5,732
31
222
5,878
203
59
3,030
362
9
1,834
264
7
1,637
227
1
18,227
1,091
534
(continued) 158
Statistical Section
Retired Members by Retirement Type
GJRS June 30, 2022
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
Retirement Type
Service Disability Survivor
24
--
2
22
--
7
28
1
4
36
--
3
31
1
5
24
--
--
43
--
--
81
--
--
155
--
--
LRS June 30, 2022
Totals
444
2
21
Amount of Monthly Benefit
$
1 - 250
251 - 500
501 - 750
751 - 1,000
over 1,000
Retirement Type
Service Disability Survivor
22
--
--
137
--
10
66
--
2
23
--
3
17
--
1
GMPF June 30, 2022
Totals
265
--
16
Amount of Monthly Benefit Retirement Type
Service
$
1 - 49
50 - 100
over 100
-- 1,472
--
Totals
1,472
159
Statistical Section
Retired Members by Optional Form of Benefit
ERS June 30, 2022
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
5,001 - 5,500
5,501 - 6,000
over 6,000
Subtotal - not including SGLI
SGLI* Monthly Benefit Amount
$
1 - 500
Subtotal - SGLI only Total 2% escalation**
Form of Benefit Maximum Plan Option 1 Option 2 Option 3 Option 4 Option 5A Option 5B
1,322
408
1,282
494
1,169
176
64
4,287
1,215
2,079
713
1,559
456
216
3,603
1,101
1,611
663
1,279
533
263
2,847
968
1,074
591
762
377
315
2,190
729
767
522
596
374
302
1,647
536
546
370
583
235
225
1,151
393
374
306
585
200
184
908
271
295
199
631
142
154
629
188
187
175
576
70
130
503
111
141
167
569
64
83
321
108
97
106
552
47
50
214
44
68
97
339
33
45
445
115
177
224
873
51
85
20,067
6,187
8,698
4,627 10,073
Form of Benefit - SGLI
2,758
2,116
Maximum Plan Option 1 Option 2 Option 3 Option 4 Option 5A Option 5B
1
--
2
--
--
1
--
1 20,068
99
-- 6,187
--
2 8,700
54
-- 4,627
17
-- 10,073
29
1 2,759
17
-- 2,116
8
Maximum Plan Single life annuity
Option 1
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
Option 2
100% joint and survivor annuity with a popup option upon divorce
Option 3
50% joint and survivor annuity with a popup option upon divorce
Option 4
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
Option 5A
100% joint and survivor annuity with a popup option upon divorce or the death of the beneficiary before the retiree
Option 5B
50% joint and survivor annuity with a popup option upon divorce or the death of the beneficiary before the retiree
*Supplemental Guaranteed Lifetime Income (SGLI) is an in-plan annuity purchase available to ERS retirees. Introduced in FY21, the purchase is made with Peach State Reserves funds and is a separate benefit, in addition to the retiree's service/disability benefit, but has the same optional forms and escalation option available.
**The option to add an escalating component to the form of benefit selected was added in FY21. When escalation is selected, the monthly benefit amount increases 2% each year.
(continued) 160
Statistical Section
Retired Members by Optional Form of Benefit
PSERS June 30, 2022
Amount of Monthly Benefit
$
1 - 100
101 - 200
201 - 300
301 - 400
401 - 500
over 500
Form of Benefit
Maximum Plan Option AA Option AB Option AC Option AD Option B
--
36
273
3,598
1,331
439
4,734
736
251
2,706
415
81
1,761
188
68
1,680
100
36
5
26
16
10
199
408
6
118
295
5
55
139
9
19
60
2
4
43
Totals
14,479
2,806
1,148
37
421
961
Maximum Plan Single life annuity
Option AA
100% joint and survivor annuity
Option AB
50% joint and survivor annuity
Option AC
Joint and survivor annuity with a specified monthly amount payable to a beneficiary
Option AD
Joint and survivor annuity with the amount payable to a beneficiary limited by the age difference between the retiree and the beneficiary
Option B
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
(continued) 161
Statistical Section
Retired Members by Optional Form of Benefit
GJRS June 30, 2022
Amount of Monthly Benefit
Spousal Maximum Plan Coverage Option 1
Form of Benefit Option 2 Option 3 Option 4A Option 4B Option 4C
$ 1 - 1,000
1
25
--
--
--
--
--
--
1,001 - 2,000
3
26
--
--
--
--
--
--
2,001 - 3,000
7
26
--
--
--
--
--
--
3,001 - 4,000
3
36
--
--
--
--
--
--
4,001 - 5,000
6
31
--
--
--
--
--
--
5,001 - 6,000
8
15
1
--
--
--
--
--
6,001 - 7,000
9
34
--
--
--
--
--
--
7,000 - 8,000
23
58
--
--
--
--
--
--
over 8,000
29
126
--
--
--
--
--
--
Totals
89
377
1
--
--
--
--
--
Maximum Plan
Single life annuity
Indicates the member paid additional contributions to provide a 50% joint and survivor annuity at Spousal Coverage* retirement
Option 1**
100% joint and survivor annuity
Option 2**
66 % joint and survivor annuity
Option 3**
50% joint and survivor annuity
Option 4A**
100% joint and survivor annuity with a popup option upon death of beneficiary before the retiree
Option 4B**
66 % joint and survivor annuity with a popup option upon death of beneficiary before the retiree
Option 4C**
50% joint and survivor annuity with a popup option upon death of beneficiary before the retiree
*Only available if membership start date prior to July 1, 2012 **Only available if membership start date on or after July 1, 2012
(continued) 162
Statistical Section
Retired Members by Optional Form of Benefit
LRS June 30, 2022
Amount of Monthly Benefit
$
1 - 250
251 - 500
501 - 750
751 - 1,000
over 1,000
Form of Benefit
Maximum Plan Option B1 Option B2
--
18
4
54
81
12
40
18
10
5
18
3
9
7
2
Totals Maximum Plan Single life annuity
108
142
31
Option B1
100% joint and survivor annuity
Option B2
50% joint and survivor annuity
GMPF and SEAD - OPEB June 30, 2022
The GMPF Plan provides a benefit only in one form, a life annuity. All 1,472 current retirees, therefore, have this same form of benefit. The SEAD-OPEB plan provides only a lump sum death benefit to a member's beneficiary(ies).
163
Statistical Section
Principal Participating Employers FY13
ERS
Department of Corrections Department of Behavioral Health and Developmental Disabilities Department of Transportation Department of Juvenile Justice Department of Labor Department of Human Resources Department of Natural Resources Department of Public Safety Department of Revenue Department of Public Health
Total Top Employers Total ERS Member Count PSERS
Gwinnett County Schools Cobb County Schools Dekalb County Schools Clayton County Schools Muscogee County Schools Cherokee County Schools Richmond County Schools Forsyth County Schools Henry County Schools Houston County Schools
Total Top Employers Total PSERS Member Count GJRS
Council of Superior Courts Council of State Courts Prosecuting Attorney's Council Council of Juvenile Courts
Total Top Employers Total GJRS Member Count SEAD - OPEB Department of Corrections Department of Transportation Department of Behavioral Health and Developmental Disabilities Department of Human Resources Department of Juvenile Justice Department of Natural Resources Department of Labor Department of Public Safety Department of Revenue Department of Public Health
Total Top Employers Total ERS Member Count
Member Count % of Total Plan
11,770 5,101 4,283 3,472 3,362 1,732 1,724 1,636 1,024 930
35,034 61,554
19.0 % 8.3 7.0 5.6 5.5 2.8 2.8 2.7 1.7 1.5
56.9
3,839
10.1
2,547
6.7
2,197
5.8
1,106
2.9
937
2.5
879
2.3
849
2.2
834
2.2
750
2.0
682
1.8
14,620
38.5
37,919
207
40.9
115
22.7
104
20.6
71
14.0
497
98.2
506
7,624 3,774 2,911 2,441 2,047 1,462 1,334 1,275
673 594
24,135 43,127
17.6% 8.8% 6.7% 5.7% 4.7% 3.4% 3.1% 3.0% 1.6% 1.4%
56.0%
164
Statistical Section
Principal Participating Employers FY22
ERS
Department of Corrections Department of Transportation Department of Behavioral Health and Developmental Disabilities Department of Juvenile Justice Department of Human Services Department of Public Safety Department of Community Supervision Department of Natural Resources Department of Labor Department of Public Health
Total Top Employers Total ERS Member Count PSERS
Gwinnett County Schools Cobb County Schools Dekalb County Schools Clayton County Schools Forsyth County Schools Houston County Schools Chatham County Schools Richmond County Schools Cherokee County Schools Muscogee County Schools
Total Top Employers Total PSERS Member Count GJRS
Council of Superior Courts Council of State Court Judges Council of Juvenile Courts Solicitor General
Total Top Employers Total GJRS Member Count 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 Community Supervision Department of Public Safety Department of Labor Superior Courts of Georgia
Total Top Employers Total Active Member Count
Member Count % of Total Plan
6,118 3,589 2,995 2,366 2,302 1,732 1,698 1,685 1,058 1,045
24,588 52,526
11.7 % 6.8 5.7 4.5 4.4 3.3 3.2 3.2 2.0 2.0
46.8
3,352
10.5
1,934
6.1
1,885
5.9
1,026
3.2
955
3.0
834
2.6
820
2.6
686
2.2
657
2.1
613
1.9
12,762
40.1
31,833
215
41.1
117
22.3
74
14.1
56
10.7
462
88.2
524
2,114
12.5
1,547
9.1
808
4.8
777
4.6
674
4.0
659
3.9
623
3.7
532
3.1
446
2.6
317
1.9
8,497
50.2
16,926
165
Statistical Section
Schedule of Revenue and Expenses State Employees' Assurance Department Active Members Fund
Year ended June 30, 2022 (In thousands)
Operating revenue: Insurance premiums Total operating revenue
2022
2021
2020
2019
2018
2017
$ 479 $ 521 $ 547 $ 531 $ 540 $ 599
479
521
547
531
540
599
Operating expenses: Death benefits Administrative expenses Total operating expenses Total operating loss
3,333 84
3,417 (2,938)
4,870 77
4,947 (4,426)
3,588 80
3,668 (3,121)
3,424 80
3,504 (2,973)
2,972 76
3,048 (2,508)
4,019 64
4,083 (3,484)
Nonoperating revenues (expenses): Allocation of investment income (loss) from pooled investment fund Investment expenses Total nonoperating revenues Change in net position
(47,867) (66)
(47,933) (50,871)
93,479 (70)
93,409 88,983
16,651 (67)
16,584 13,463
19,708 (65)
19,643 16,670
24,493 (64)
24,429 21,921
29,847 (62)
29,785 26,301
Total net position: Beginning of year End of year
408,323 $ 357,452
319,340 408,323
305,877 319,340
289,207 305,877
267,286 289,207
240,985 267,286
In fiscal year 2017, the System adopted the provisions of GASB Statement No. 74 and revised its accounting methodology with regard to the presentation of SEAD-Active, and began reporting it as a proprietary fund. In previous years it was reported as a fiduciary fund. Additional years will be displayed as they become available.
166
Statistical Section
Schedule of Membership State Employees' Assurance Department Active Members Fund
Fiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Covered Lives 43,127 38,711 35,142 31,869 28,873 26,032 23,368 21,020 18,772 16,926
167
Statistical Section
Statistical Data at June 30, 2022
System
Net Position
Employer and Nonemployer Contributions
ERS
$13.8 billion
Old Plan: 19.88% New Plan: 24.63%
GSEPS 21.57% ($619.7 million)
Employee Contributions
Old Plan: 6% (with 4.75% pickup)
New Plan: 1.25% GSEPS: 1.25% ($36.1 million)
Active Members
Old Plan: (0.03%) 17 New Plan: (32.00%) 16,810 GSEPS: (67.96%) 35,699
Total: 52,526
Inactives 70,637
PSERS GJRS
$1.0 billion $516.6 million
$32.5 million
8.81% ($10.0 million)
$36 yr prior July 1, 2012 $90 yr after July 1, 2012 ($2.3 million)
7.5% +2.5% Spousal, if
applicable ($5.5 million)
31,833 524
53,727 82
LRS
$36.0 million
0% (None)
8.5% (with 4.75% pickup)
($344 thousand)
217
164
Retirees
Total: 54,530 Service: 42,094 Beneficiary: 6,472 Disability: 5,421 Inv. Sep.: 392 Law. Enf.: 147
SGLI: 4
Annual Payment $1.5 billion
19,852
$68.5 million
467
$34.1 million
281
$1.8 million
Average Monthly Benefit(1) $2,179
$290
$6,042
$512
GDCP
$137.4 million
None
7.5% ($16.2 million)
11,825
125,326
2
$10 thousand
$4,928
SCJRF
$6 thousand
$275 thousand
None
None
None
4
$275 thousand
$5,332
DARF
$2 thousand
$23 thousand
None
SEAD
$1.3 billion
None
New Plan: 0.23% Old Plan: 0.45%
($2.6 million)
GMPF
$34.9 million
$2.7 million
(1) GDCP average benefit payment is an annual amount.
None
None No. Insured:
16,926 13,834
168
None 1,059 3,635
2
No. Insured: 44,371
1,472
$23 thousand
$947
No. of Claims: 1,534
Amt. Pd: $58.1 million
Average Claim: $37,879
$1.5 million
$89