Teachers Retirement System of Georgia, comprehensive annual financial report, fiscal year ended June 30, 2007

Teachers Retirement System of Georgia

A Component Unit of the State of Georgia

For the Fiscal Year Ended June 30,

Our mission is to provide Exceptional Service
in the administration of pension benefits and related services to
TRS members, retirees, and employers.

Teachers Retirement System of Georgia
For the Fiscal Year Ended June 30,
A Component Unit of the State of Georgia
Jeffrey L. Ezell Executive Director

Tableof Contents

Introductory Section Financial Section
Investment Section Actuarial Section Statistical Section

Certificate of Achievement

3

Board of Trustees

4

Letter of Transmittal

5

Your Retirement System

8

System Assets

9

Administrative Staff and Organization 10

Summary of Plan Provisions 11

Independent Auditors' Report 14

Management's Discussion & Analysis 15

Basic Financial Statements:

Statements of Plan Net Assets 19

Statements of Changes in 20

Plan Net Assets

Notes to Financial Statements 21

Required Supplementary Schedules

29

Additional Information--

31

Administrative Expenses

Additional Information--

32

Investment Expenses

Investment Overview

33

Time-Weighted Rates of Return

34

Asset Allocation

35

Investment Summary 35

Portfolio Detail Statistics

36

Actuary's Certification Letter

37

Summary of Actuarial Assumptions 38

and Methods

Actuarial Valuation Data

40

Statistical Section Overview

43

Financial Trends

44

Operating Information

46

Certificateof Achievement

Introductory Section

Teachers Retirement System of Georgia 2007 Comprehensive Annual Financial Report

3

Board of Trustees

Introductory Section

*Dr. Virginia J. Dixon CHAIR
Retired Educator 2415 Carver Drive Fort Valley, Georgia 31030

*Mr. Russell W. Hinton VICE-CHAIR State Auditor
270 Washington Street, S.W. Suite 4-114
Atlanta, Georgia 30334

Mrs. Brenda B. Barrow Instructional Lead Teacher Effingham County Schools Guyton Elementary School 719 Central Blvd., P.O. Box 9
Guyton, Georgia 31312

*Mr. Paul E. DeMersseman Vice President
Peachtree Planning Corporation P.O. Box 5457
Athens, Georgia 30604

*Mr. W. Daniel Ebersole Director
Office of Treasury & Fiscal Services 200 Piedmont Avenue, SE, Suite 1202, West Tower Atlanta, Georgia 30334

Dr. Lorelle C. "Buster" Evans Superintendent
Forsyth County Board of Education 1120 Dahlonega Highway Cumming, Georgia 30040


Professor Dwight R. Lee Economics Department
Brooks Hall The University of Georgia
Athens, Georgia 30602

Mrs. Lisa S. Muldrew Choral Director/Asst. Band Director
Statesboro High School 10 Lester Road
Statesboro, Georgia 30458

* Investment Committee Member
4

*Mr. Thomas W. Norwood Retired Businessman 1190 Crest Valley Drive
Atlanta, GA 30327

*Mr. J. Alvin Wilbanks Superintendent
Gwinnett County Schools 437 Old Peachtree Road, NW
Suwanee, Georgia 30024

Teachers Retirement System of Georgia

Letter of Transmittal

Introductory Section

December 11, 2007
Board of Trustees Teachers Retirement System of Georgia Atlanta, Georgia

I am pleased to present the ComprehensiveAnnual Financial Report of the Teachers Retirement System of Georgia (the "System") for the fiscal year ended June 30, 2007. Responsibility for both the accuracy of the data, and completeness and fairness of the presentation, including all disclosures, rests with the management of the System. To the best of our knowledge and belief, 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. I trust that you will find this report helpful in understanding your retirement system.
Certificate of Achievement
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Teachers Retirement System of Georgia for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2006. This was the nineteenth consecutive year that the System has achieved this prestigious award.
In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current Comprehensive Annual Financial Report continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate.

History and Overview
The System was created in 1943 by an act of the Georgia GeneralAssembly to provide retirement security to those individuals who choose to dedicate their lives to educating the children of the State of Georgia. A summary of the System's benefits is provided on pages 11-13 of this report.
As the largest public retirement system in the State of Georgia and the 27th largest retirement system in the United States, the System pays out $2.2 billion in benefits per year.
The System is administered by a ten-member Board of Trustees. The Executive Director and over 180 employees are responsible for the administration and operations of the System, which serves more than 363,000 active and retired members, and 385 employers.
Legislation
During the 2007 session, the Georgia General Assembly passed a piece of legislation that substantially impacted the System. Effective July 1, 2007, Georgia law was amended allowing the System to invest up to 15% of its assets in corporations or obligations of corporations outside the U.S. and Canada. The previous limitation was 10%.
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

2007 Comprehensive Annual Financial Report

5

Letter of Transmittal

Introductory Section

they are recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Even though there are inherent limitations in any system of internal control, the management of the System makes every effort to ensure that through systematic reporting and internal reviews, errors or fraud would be quickly detected and corrected.
Please refer to Management's Discussion and Analysis starting on page 15 of this report for an overview of the financial status of the System including a summary of the System Net Assets, Changes in Net Assets, and Asset Allocations.
INVESTMENTS -- The System has continued to invest in a mix of high quality bonds and stocks as it historically has done. These types of investments have allowed the System to participate in rising markets, while moderating the risks on the downside. New funds continue to be invested in high quality securities. A high quality balanced fund has proven to be a successful strategy in a variety of markets over a long period of time.
As in previous years, maintaining quality was a primary goal and was successfully met. "Conservation of Capital" and "Conservatism" continue to be the principal guides in investment decisions. The System continued to use a diversified portfolio to accomplish these objectives. In summary, the investment status of the System is excellent.
FUNDING -- The System's funding policy provides for employer contributions at rates that, expressed as a percentage of annual covered payroll, are sufficient to provide resources to pay benefits when due.
A useful indicator of the funded status of a retirement system is the relationship between the actuarial value of assets and the actuarial accrued liabilities. The greater the level of funding, the larger the ratio of the actuarial value of assets to the actuarial accrued liabilities.
The System continues to remain strong as evidenced by the ratio of the actuarial value of assets to

the actuarial accrued liabilities. This ratio changed from 98.0% in the fiscal year ended June 30, 2005, to 96.5% in the fiscal year ended June 30, 2006. The ultimate test of the financial soundness of a retirement system is its ability to pay all promised benefits when due. I am proud to say that through the continued wisdom and the support of Governor Sonny Perdue and the General Assembly of the State of Georgia, the System has been and continues to be funded on an actuarially sound basis, thus providing the membership the comfort and security they expect from their retirement system.
Initiatives
In our continuous effort to make the services we provide to our members faster, friendlier and easier, we continued to develop new ways to conduct business more effectively and efficiently.
This year, the management team participated in Franklin Covey's "The 4 Disciplines of Execution". The goal was to identify the System's Wildly Important Goals and to work together to make sure each one is executed and measured throughout the System. We have always been customer service driven and we have welcomed Governor Perdue's emphasis on making customer service faster, friendlier, and easier throughout State government. The success of everything we do is measured by the satisfaction of our members. Every idea or process must make life faster, friendlier, and easier for not only our members, but also our employers.
We continued to deliver our services throughout the State via our Customer Excellence Program (CEP). The CEP has been expanded to include six full-time retirement planners, a trainer/retirement planner, and a manager in an effort to grow the program and keep up with the demands of our members. Last year, we attended over 190 events, reaching over 25,000 active and retired members via new member, mid-career, pre- and post-retirement workshops and provided pre-retirement counseling to over 5,000 members within five years of retirement.

6

Teachers Retirement System of Georgia

Letter of Transmittal

Introductory Section

We also created a new employer training program for our 385 employers to educate them on our policies and procedures. And we continued to build partnerships with the leadership of various educational organizations, including their regional chapters, and their members.

We continued to enhance the web services we provide our members, allowing them to conduct business with us whenever they choose. We created the ability for our active members to update their beneficiary information online, of which over 18,000 members have taken advantage, dramatically reducing the number of paper forms submitted. We developed an online verification process for employers to submit information on retirees returning to work, making it easier for employers to ensure they are hiring retirees within the limits of Georgia law. For the second year, we posted the annual membership statements online and approximately 54,000 copies have been downloaded, saving our members time and allowing the staff to focus on enhancing production in other areas of the business. We also converted 265 employers to a new online file format that not only provides us with additional important member information, but automates the member enrollment process. Because a lot of business is conducted online, we have taken new and innovative measures to ensure the safety of our member's data. We successfully passed two local area network security audits conducted by an external security firm and continuously monitor our systems to protect against fraudulent activity.
Other Information
INDEPENDENTAUDIT -- 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' report on the statements of plan net assets and the related statements of changes in plan net assets is included in the Financial Section of this report.

the leadership of the Board of Trustees. It is intended to provide complete and reliable information as a basis for making management decisions, as a means of determining compliance with legal provisions, and as a means for determining responsible stewardship of the assets contributed by the System's members, their employers, and the State of Georgia.
Copies of this report can be obtained by contacting the System, or may be downloaded from the System's website.
I would like to take this opportunity to express my gratitude to Governor Sonny Perdue, members of the Georgia General Assembly, the staff, the advisors, and to the many people who have worked so diligently to ensure the successful operation of the System. Sincerely,
Jeffrey L. Ezell Executive Director

ACKNOWLEDGMENTS -- The compilation of this report reflects the combined effort of the staff under

2007 Comprehensive Annual Financial Report

7

Your Retirement System

Financial Highlights
Member Contributions Employer Contributions Interest and Dividend Income Benefits Paid to Retired Members Member Withdrawals Interest Credited to Member Contributions

June 30,

2007

2006

% Change

$ 524,940,000 $ 927,371,000 $ 1,480,105,000 $ 2,282,950,000 $ 52,875,000

$ 485,721,000 $ 855,626,000 $ 1,274,215,000 $ 1,991,431,000 $ 53,138,000

+ 8.1 + 8.4 + 16.2 + 14.6
_
0.5

$ 215,766,000 $ 205,585,000

+ 5.0

Statistical Highlights
Active Membership Members Leaving the System Retired Members Average Monthly Benefit

218,141 8,251 76,133
$ 2,499

209,349 8,649 70,239
$ 2,363

+ 4.2
_ 4.6
+ 8.4 + 5.8

Introductory Section

8

Teachers Retirement System of Georgia

System Assets

Growth of Total System Assets (in billions)

Equities $55

$45
$37.8
$35

$39.3

Fixed Income Other

$42.6

$45.4

$47.4

$53.3

$25

$15

Introductory Section

02

03

04

05 06

07

Total System Assets at June 30 (in thousands)

2002

2003

2004

Equities
Fixed Income Other(1)

$20,142,071
16,446,346 1,248,540

$20,058,758
17,961,576 1,270,063

$25,120,626
16,469,405 1,053,021

Total System Assets

$37,836,957 $39,290,397 $42,643,052

2005
$27,121,761 17,075,215 1,160,906
$45,357,882

2006
$28,654,452 17,243,798 1,489,478
$47,387,728

2007
$32,928,370 17,115,170 3,249,443
$53,292,983

(1) Includes receivables, cash, short-term securities, mortgage loans, and capital assets, net.

2007 Comprehensive Annual Financial Report

9

Administrative Staff and Organization

Introductory Section

Jeffrey L. Ezell Executive Director

Stephen J. Boyers Chief Financial Officer

R. David McCleskey Chief Operating Officer

Charles W. Cary, Jr. Chief Investment Officer
Investment Services

Diann F. Green Director
Retirement Services

Lisa M. Hajj Director
Communications

M. Cathy Hart Director
Member Services

Dina N. Jones Director
Employer Services

Laura L. Lanier Controller
Financial Services

J. Gregory McQueen Director
Information Technology

Tonia T. Morris Director
Human Resources

Charles P. Warren Director
Contact Management

Consulting Services

Investment Advisors

Actuary Cavanaugh Macdonald
Consulting, LLC
Auditor KPMG LLP
Medical Advisors Gordon J. Azar, M.D. Atlanta, Georgia Arthur S. Booth, Jr., M.D. Atlanta, Georgia Joseph W. Stubbs, M.D. Albany, Georgia

Albritton Capital Management Oak Associates, ltd. Sands Capital Management Montag & Caldwell EARNEST Partners NCM Capital Management
Group Fisher Investments Philadelphia International
Advisors

Trusco Capital Management Barrow, Hanley, Mewhinney
& Strauss Cooke & Bieler Crawford Investment
Counsel Hotchkis and Wiley
Capital Management

10

Teachers Retirement System of Georgia

Summaryof Plan Provisions

Introductory Section

Purpose
The Teachers Retirement System of Georgia (the "System") was established in 1943 by an act of the Georgia General Assembly for the purpose of providing retirement allowances and other benefits for teachers of this state. The System has the power and privileges of a corporation, and the right to bring and defend actions.
The major objectives of the System are (1) to pay monthly benefits due to retirees accurately and in a timely manner, (2) to soundly invest retirement funds to insure adequate financing for future benefits due and for other obligations of the System, (3) to provide statewide educational and counseling services for System members, (4) to accurately account for the status and contributions of all active and inactive members, and (5) to process refunds due terminated members.
Administration
State statutes provide that the administration of the System be vested in a ten-member Board of Trustees comprised as follows:
Ex officio members:
the State Auditor,
the Director of the Office of Treasury and Fiscal Services,
Governor's appointees:
two active members of the System who are classroom teachers and not employees of the Board of Regents,
one active member of the System who is a public school administrator,
one active member of the System who is not an employee of the Board of Regents,
one member to be selected by the Governor, Board of Regents appointee:
one active member of the System who is an employee of the Board of Regents,
Trustee appointees:
one member who has retired under the System,
one individual who is a citizen of the state, not a member of the System and experienced in the investment of money.
A complete listing of the current Board of Trustees is included on page 4 of this report.

Management of the System is the responsibility of the Executive Director who is appointed by the Board and serves at its pleasure. On behalf of the Board, the Executive Director is responsible for the proper operation of the System, engaging such actuarial and other services as shall be necessary to transact business, and paying expenses necessary for operations. A listing of the administrative staff is included on page 10 of this report.
Membership
All personnel in covered positions of the state's public school systems, technical colleges, RESA units and all colleges and universities comprising the University System of Georgia who are employed one-half time or more, except those professors and principal administrators electing to participate in the Board of Regents of the University System of Georgia Optional Retirement Plan, are required to be members of the System as a condition of employment.
Eligibility
Service Retirement Active members may retire and elect to receive
monthly retirement benefits after one of the following conditions: 1) completion of 10 years of creditable service and attainment of age 60, or 2) completion of 25 years of creditable service.

2007 Comprehensive Annual Financial Report

11

Introductory Section

Summaryof Plan Provisions

Disability Retirement
Members are eligible to apply for monthly retirement benefits under the disability provision of the law if they are an active member, have at least 10 years of creditable service, and are permanently disabled.
The Formula
Normal Retirement
Any member who has at least 30 years of creditable service or who has at least 10 years of creditable service and has attained age 60 will receive a benefit calculated by using the percentage of salary formula. Simply stated, two percent (2%) is multiplied by the member's years of creditable service established with the System, including partial years (not to exceed 40 years). The product is then multiplied by the average monthly salary for the two highest consecutive membership years of service. The resulting product is the monthly retirement benefit under the maximum plan of retirement.
Early Retirement
Any member who has not reached the age of 60 and has between 25 and 30 years of creditable service will receive a reduced benefit. The benefit will be calculated using the percentage of salary formula explained above. It will then be reduced by the lessor of 1/12 of 7% for each month the member is below age 60, or 7% for each year or fraction thereof the member has less than 30 years of creditable service. The resulting product is the monthly retirement benefit under the maximum plan of retirement.
Disability Retirement
Disability retirement benefits are also calculated using the percentage of salary formula explained above. The resulting product is the monthly disability retirement benefit under the maximum plan. There is no age requirement for disability retirement.
Plan A - Maximum Plan of Retirement
This plan produces the largest possible monthly benefit payable to the member only during his or her lifetime. There are no survivorship benefits under this plan.

Plan B - Optional Plans of Retirement
Upon retirement, a member of the System may elect one of six optional plans that provide survivorship benefits. The election of an optional form of payment is made upon application for retirement and it becomes irrevocable upon distribution of the first benefit check. The six options are as follows:
Option 1
The retiring member accepts a relatively small reduction from the maximum monthly benefit in order to guarantee to the estate, beneficiary or beneficiaries named on the retirement application, a lump-sum refund of any remaining portion of member contributions and interest.
Option 2
This plan offers the retiring member a reduced monthly benefit, based on the ages of the member and the beneficiary, payable for life. It further provides a guarantee to the surviving named beneficiary that, at the death of the retired member, the beneficiary will receive the same basic monthly retirement allowance the member received at the date of retirement plus any cost-of-living increases the member received up to the time of death.
Option 2 Pop-Up
Any member may elect a reduced retirement allowance to be designated "Option 2 Pop-Up" with the provision that if the beneficiary dies prior to the retiree that the basic benefit payable to the retiree shall increase to an amount as though the retiree had not selected an optional plan of retirement.

12

Teachers Retirement System of Georgia

Introductory Section

Summaryof Plan Provisions

Option 3
This plan of retirement offers a reduced monthly benefit that is based on the ages of the member and the beneficiary. The resulting benefit is paid to the retired member for life, with the guarantee to the surviving named beneficiary that at the time of the retired member's death, the beneficiary will receive a payment for life of one-half of the initial monthly benefit received by the member at the time of retirement plus one-half of any cost-of-living increases the member received up to the time of death.
Option 3 Pop-Up
Any member may elect a reduced retirement allowance to be designated "Option 3 Pop-Up" with the provision that if the beneficiary dies prior to the retiree, the basic benefit payable to the retiree shall increase to an amount as though the retiree had not selected an optional plan of retirement.
Option 4
This plan allows the retiring member to select a specific monthly amount other than provided for in the other options, which will be paid for life following a retiree's death to the living beneficiary. The beneficiary would also receive a pro-rata share of any cost-of-living increases the member received up until the time of death, or the benefit will be divided among the beneficiaries in accordance with the percentage or specific dollar designations made by the member at the time of retirement. One major difference in this plan is that the retiring member may actually elect that following his or her death, a certain amount of money can be paid monthly to a beneficiary rather than a percentage.
Partial Lump-Sum Option Plan
TRS offers a Partial Lump-Sum Option Plan (PLOP) at retirement. In exchange for a permanently reduced lifetime benefit, a member may elect to receive a lump-sum distribution in addition to a monthly retirement benefit. The age of the member and plan of retirement are used to determine the reduction in the benefit.

A member is eligible to participate in the Partial Lump-Sum Option Plan if he or she meets the following criteria. A member must:
have 30 years of creditable service or 10 years of creditable service and attain age 60 (not early retirement).
not retire with disability benefits.
At retirement, a member may elect a lump-sum distribution in an amount between 1 and 36 months of his or her normal monthly retirement benefit. This amount will be calculated under Plan A - Maximum Plan of Retirement and will be rounded up and down to be a multiple of $1,000. If a PLOP distribution is elected, the monthly benefit is actuarially reduced to reflect the value of the PLOP distribution. The combination of both the PLOP distribution and the reduced benefit are the same actuarial value as the unreduced normal benefit alone.
Financing the System
The funds to finance the System come from member contributions, 5% of annual salary; employer contributions, 9.28% of annual salary; and investment income.

2007 Comprehensive Annual Financial Report

13

Independent Auditors' Report

Financial Section

KPMG LLP Suite 2000 303 Peachtree Street, NE Atlanta, GA 30308 www.kpmg.com

The Board of Trustees Teachers Retirement System of Georgia

We have audited the accompanying statements laws, regulations, contracts, and grant agreements

of plan net assets of Teachers Retirement System of and other matters. The purpose of that report is to

Georgia (the System), a component unit of the State describe the scope of our testing of internal control

of Georgia, as of June 30, 2007 and 2006, and the over financial reporting and compliance and the

related statements of changes in plan net assets for results of that testing, and not to provide an opin-

the years then ended. These financial statements are ion on the internal control over financial reporting

the responsibility of the System's management. Our or on compliance. That report is an integral part of

responsibility is to express an opinion on these finan- an audit performed in accordance with Government

cial statements based on our audits.

Auditing Standards and should be considered in as-

We conducted our audits in accordance with

sessing the results of our audits.

auditing standards generally accepted in the United

The management's discussion and analysis and

States of America and the standards applicable to the required supplementary schedules listed in the

financial audits contained in Government Auditing table of contents are not a required part of the basic

Standards, issued by the Comptroller General of the financial statements but is supplementary informa-

United States. Those standards require that we plan tion required by U.S. generally accepted accounting

and perform the audits to obtain reasonable assur- principles. We have applied certain limited proce-

ance about whether the financial statements are free dures, which consisted principally of inquiries of

of material misstatement. An audit includes consid- management, regarding the methods of measure-

eration of internal control over financial reporting as ment and presentation of the required supplemen-

a basis for designing audit procedures that are appro- tary information. However, we did not audit the in-

priate in the circumstances, but not for the purpose formation and express no opinion on it.

of expressing an opinion on the effectiveness of the System's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The schedules of administrative expenses and investment expenses are presented for purposes of additional analysis and are not a required part of the basic financial statements. This additional information is the responsibility of the System's management. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is

In our opinion, the financial statements referred fairly stated in all material respects when considered

to above present fairly, in all material respects, the in relation to the basic financial statements taken as

financial status of the System as of June 30, 2007 a whole. The introductory, investment, actuarial,

and 2006, and the changes in financial status for the and statistical sections have not been subjected to

years then ended in conformity with U.S. generally the auditing procedures applied by us in the audit of

accepted accounting principles.

the basic financial statements and, accordingly, we

In accordance with Government Auditing Stan-

express no opinion on them.

dards, we have also issued our report dated Septem-

ber 27, 2007 on our consideration of the System's

internal control over financial reporting and on our September 27, 2007

tests of its compliance with certain provisions of

14

Teachers Retirement System of Georgia

Management's Discussion and Analysis

Financial Section

This section provides a discussion and analysis of accounting principles promulgated by the Governmen-

the financial performance of the Teachers Retirement tal Accounting Standards Board. These statements pro-

System of Georgia (the "System") for the years ended vide information about the System's overall financial

June 30, 2007 and 2006. The discussion and analysis of status.

the System's financial performance is within the context of the accompanying financial statements and disclosures following this section.

In addition, the System presents two required supplementary schedules, which provide historical trend information about the plan's funding. The two sched-

Financial Highlights
The following highlights are discussed in more detail later in this analysis.
At June 30, 2007, the System's assets exceeded its liabilities by $53.1 billion (reported as "net assets") as compared to the net assets of $47.2 billion at June 30, 2006, representing an increase of $5.9 billion. At June 30, 2006, the System's assets exceeded its liabilities by $47.2 billion (reported as "net assets") as compared to the net assets of $45.3 billion at June 30, 2005, representing an increase of $1.9 billion.
Contributions from members increased by $39.2 million or 8.1% from $485.7 million in 2006 to $524.9 million in 2007. Contributions by employers increased by $71.8 million or 8.4% from $855.6 million in 2006 to $927.4 million in 2007. Contributions from members increased by $20.8 million or 4.5% from $464.9 million in 2005 to $485.7 million in 2006. Contributions by employers increased by $39.9 million or 4.9% from $815.7 million in 2005 to $855.6 million in 2006. These increases are due to increases in membership and higher average payrolls during each of the fiscal years ended June 30, 2007 and 2006.
Pension benefits paid to retirees and beneficiaries for the years ended June 30, 2007 and 2006 were $2.3 billion and $2.0 billion, representing increases of 14.6% and 10.7%, respectively. This is due to increases in the number of retirees and beneficiaries re-

ules include (1) a schedule of funding progress and (2) a schedule of employer contributions.
The Statements of Plan Net Assets The Statement of Plan Net Assets is the statement
of financial position, presenting information that includes all of the System's assets and liabilities, with the balance reported as and representing the Net Assets Held in Trust for Pension Benefits. The investments of the System in this statement are presented at fair value. These statements are presented on page 19.
The Statements of Changes in Plan Net Assets The Statement of Changes in Plan Net Assets re-
ports how the System's net assets changed during the fiscal year. The additions and the deductions to net assets are summarized in this statement. The additions include contributions and investment income, which includes the net increase in the fair value of investments. The deductions include benefit payments, refunds of member contributions, and administrative expenses. These statements are presented on page 20.
Notes to the Financial Statements The accompanying notes to the financial statements
provide information essential to a full understanding of the System's financial statements. The notes to the financial statements begin on page 21 of this report.
Required Supplementary Schedules A brief explanation of the two required schedules
found beginning on page 29 of this report follows:

ceiving benefit payments and postretirement benefit adjustments as well as a contingent liability involving retroactive benefit payments (see note H).

Schedule of Funding Progress This schedule includes historical trend information for the last six consecutive fiscal years about the ac-

Overview of the Financial Statements

tuarially funded status of the plan from a long term, ongoing plan perspective, and the progress made in ac-

The basic financial statements include (1) the state- cumulating sufficient assets to pay benefits when due.

ments of plan net assets, (2) the statements of changes in plan net assets, and (3) notes to the financial statements. The System also includes in this report additional information to supplement the financial statements.

Schedule of Employer Contributions This schedule presents historical trend information for the last six consecutive fiscal years about the annual required contributions of employers and the con-

The System prepares its financial statements on an tributions made by employers in relation to the requireaccrual basis in accordance with U.S. generally accepted ment.

2007 Comprehensive Annual Financial Report

15

Management's Discussion and Analysis

Financial Analysis of the System
A summary of the System's net assets at June 30, 2007, 2006, and 2005 is as follows:

Net Assets (in thousands) Ju ne 30,

2007

2006

2005

Assets:

Cash and Receivables $ 612,774 $ 570,353 $ 406,080

Investments

52,669,796 46,803,873 44,935,545

Capital Assets, net

10,413

13,502

16,257

2007
Amount Percentage Change Change

$ 42,421 5,865,923
(3,089)

7.4 % 12.5 % (22.9)%

2006
Amount Percentage Change Change
$ 164,27340 .5 % 1,868,328 4.2 % (2,755 ) (1 7.0) %

Total Assets

53,292,983 47,387,728 45,357,882 5,905,255 12.5 %

2,029,846 4.5 %

Liabilities:
Due to Brokers and
Accounts Payable



159,882

141,381

79,202

18,501 13.1 %

62,179 78.5 %

Net Assets

$ 53,133,101 $ 47,246,347 $ 45,278,680 $ 5,886,754 12.5 % $ 1,967,667 4.3 %

As indicated above, the $5.9 billion and $2.0 billion increases in net assets in 2007 and 2006, respectively, are principally related to the increase in the fair value of investments. The increase in investments is analyzed below.

Financial Section

The following table presents the investment allocation at June 30, 2007, 2006, and 2005:

Asset Allocation at June 30
Equities U.S. Treasuries U.S. Agencies Corporate and Other Bonds Short Term
Asset Allocation at June 30
(in thousands)
Equities U.S. Treasuries U.S. Agencies Corporate and Other Bonds Short Term

2007

2006

2005

62.5 % 18.9 % 10.1 % 3.5 % 5.0 %



61.2 % 25.3 %

60.4 % 23.9 %

6.0 % 5.5 %

8.2 % 5.9 %

2.0 %

1.6 %



$ 32,928,370 9,928,110 5,317,895 1,869,165 2,626,256
$ 52,669,796





$ 28,654,452 $ 27,121,761

11,851,904

10,722,363

2,819,958

3,688,954

2,571,936

2,663,898

905,623

738,569

$ 46,803,873 $ 44,935,545



16

Teachers Retirement System of Georgia

Management's Discussion and Analysis

Asset Allocation at June 30 continued
The total investment portfolio at June 30, 2007 increased $5.9 billion from June 30, 2006, which is due primarily to the increase in the fair value of investments.
The total investment portfolio at June 30, 2006 increased $1.9 billion from June 30, 2005, which is due primarily to the increase in the fair value of investments.
The investment rate of return in fiscal year 2007 was 14.6%, with a 20.5% return for equities and a 5.5% return for fixed income compared to an investment rate of return in fiscal year 2006 of 6.0%, with a

10.8% return for equities and a (1.4)% return for fixed income. The five year annualized rate of return on investments at June 30, 2007 was 8.5% with an 11.2% return on equities and a 4.4% return on fixed income.
The investment rate of return in fiscal year 2006 was 6.0%, with a 10.8% return for equities and a (1.4)% return for fixed income compared to an investment rate of return in fiscal year 2005 of 7.9%, with an 8.5% return for equities and a 7.1% return for fixed income. The five year annualized rate of return on investments at June 30, 2006 was 4.8% with a 3.8% return on equities and a 5.4% return on fixed income.

Financial Section

A summary of changes in the System's net assets for the years ended June 30, 2007, 2006, and 2005 is as follows:

Changes in Net Ass ets 2007 2006

(i n thousands)

Amount Percentage Amount Percentage

2007 2006 2005 Cha nge Change Change Change

Additions:

Member Contributions $ 524,940 $ 485,721 $ 464,931 $ 39,219 8.1 % $ 20,790

4.5 %



Employer Contributions

927,371

855,626

815,693

71,745 8.4 %

39,933

4.9 %

Net Investment Income

6,792,341

2,691,062

3,279,505 4,101,279 152.4 %

(588,443) (17.9)%

Total Additions 8,244,65 2 4,032,409

4,560,129 4,212,243 104.5 % (527, 720) (11.6)%

Deductions:



Benefit Payments

2,282,950

1,991,431

1,799,478

291,519 14.6 %

191,953 10.7 %

Refunds

52,875

53,138

50,491

(263) (0.5)%

2,647

5.2 %

Administrative Expenses

22,073

20,173

19,558

1,900 9.4 %

615

3.1 %

Total Deductions

2,357,898

2,064,742

1,869,527

293,156 14.2 %

195,215 10.4 %

Net Increase in Plan Net
Assets

$ 5,886,754 $ 1,967,667 $ 2, 690,602 $ 3,919,087 199.2 % $ (722,935)

(26.9)%

2007 Comprehensive Annual Financial Report

17

Management's Discussion and Analysis

Additions
The System accumulates resources needed to fund benefits through contributions and returns on invested funds. Member contributions increased 8.1% and 4.5% in 2007 and 2006, respectively, primarily because of increased membership and a higher average payroll in both years. Employer contributions likewise increased 8.4% and 4.9% in 2007 and 2006, respectively, also as a result of increased membership and a higher average payroll. The employer contribution rate increased to 9.28% in 2007 from 9.24% in 2006. The employer contribution rate was recommended by the actuary and approved by the System's Board of Trustees. The net investment income is a result of solid investment returns.
Deductions
Deductions increased 14.2% in 2007 and 10.4% in 2006, primarily because of the 14.6% and 10.7% increase in benefit payments resulting from an increase in the number of retirees and beneficiaries receiving benefit payments to 76,133 in 2007 from 70,239 in 2006 and 66,282 in 2005 and postretirement benefit increases in both years as well as a contingent liability involving retroactive benefit payments in 2007.

Funding Status
The schedule of funding progress and schedule of employer contributions provide information regarding how the plan is performing and funded from an actuarial perspective. The information is based upon actuarial valuations conducted by certified actuaries. The funding ratio, which is presented on the schedule of funding progress, indicates the ratio between the actuarial value of assets and the actuarial accrued liabilities. The higher this ratio, the better funded the System is from an actuarial perspective.
The June 30, 2006 actuarial valuation, which is the latest valuation available, indicates that the actuarial value of assets was $49.3 billion and that the actuarial accrued liability was $51.1 billion. This results in a funding ratio of 96.5%. The June 30, 2005 actuarial valuation indicates that the actuarial value of assets was $46.8 billion and that the actuarial accrued liability was $47.8 billion. This results in a funding ratio of 98.0%.
The System continues to be in a strong financial position, as evidenced by the funding ratio.

Financial Section

18

Teachers Retirement System of Georgia

Financial Section

Statementsof Plan Net Assets June 30, 2007 and 2006 (in thousands)

Assets

2007

Cash Receivables:

$ 8,596

Interest and Dividends

253,020

Due from Brokers for Securities Sold

199,616

Member and Employer Contributions

113,527

Due from Fulton County School Employees Pension Fund

38,015





Total Receivables

604,178

Investments - at fair value:
Short-Term U.S Treasuries U.S. Agencies Corporate and Other Bonds Common Stocks

2,626,256 9,928,110 5,317,895 1,869,165 32,928,370



Total Investments

Capital Assets, net

52,669,796 10,413



Total Assets

Liabilities
Due to Brokers for Securities Purchased Accounts Payable and Other

53,292,983
52,613 107,269



Total Liabilities

Net Assets Held in Trust for Pension Benefits
(A Schedule of Funding Progress is presented on page 29.)
See accompanying notes to financial statements.

159,882 $ 53,133,101

2006
$ 855
254,826 168,320 105,225 41,127
569,498
905,623 11,851,904 2,819,958 2,571,936 28,654,452
46,803,873 13,502
47,387,728
132,205 9,176
141,381
$ 47,246,347

2007 Comprehensive Annual Financial Report

19

Financial Section

Statementsof Changes in Plan Net Assets
Years ended June 30, 2007 and 2006 (in thousands)

Net Assets Held in Trust for Pension Benefits - Beginning of year

Additions:

Contributions: Employer Member
Investment Income: Net Increase in Fair Value of Investments Interest, Dividends, and Other



Total

Less Investment Expense



Net Investment Income Total Additions

Deductions:

Benefit Payments Refunds of Member Contributions
Administrative Expenses, net



Total Deductions



Net Increase

Net Assets Held in Trust for Pension Benefits - End of year

2007
$ 47,246,347
927,371 524,940
5,361,759 1,480,105 6,841,864
49,523 6,792,341 8,244,652
2,282,950 52,875 22,073
2,357,898 5,886,754
$ 53,133,101

2006
$ 45,278,680
855,626 485,721
1,459,292 1,274,215 2,733,507
42,445 2,691,062 4,032,409
1,991,431 53,138 20,173
2,064,742 1,967,667
$ 47,246,347

See accompanying notes to financial statements.

20

Teachers Retirement System of Georgia

Financial Section

Notes to Financial Statements June 30, 2007 and 2006

A. Plan Description
Teachers Retirement System of Georgia (the "System") was created in 1943 by an act of the Georgia Legislature (the Act) to provide retirement benefits for teachers who qualify under the Act. The System is administered as a cost sharing, multiple employer plan as defined in Governmental Accounting Standards Board (GASB) Statement No. 25. On October 25, 1996, the Board of Trustees created the Supplemental Retirement Benefit Plan of the Georgia Teachers (SRBP). SRBP was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC 415) as a portion of the System. The purpose of SRBP is to provide retirement benefits to employees covered by the System whose benefits are otherwise limited by IRC 415. Although the System is a component unit of the state of Georgia's financial reporting entity, it is accountable for its own fiscal matters and presentation of its separate financial statements. A Board of Trustees comprised of active and retired members and ex officio state employees is ultimately responsible for the administration of the System.
In evaluating how to define the System for financial reporting purposes, the management of the System has considered all potential component units. The decision to include a potential component unit in the reporting entity is made by applying the criteria set forth by GASB Statement No. 14. The concept underlying the definition of the reporting entity is that elected officials are accountable. The decision to include a potential component unit in the reporting entity is also made by applying specific criteria as outlined in GASB No. 39, including consideration of the nature and significance of the relationship of potential component units. Based on those criteria, the System has not included any other entities in its reporting entity.

Eligibility and Membership
All teachers in the state public schools, the University System of Georgia (except those professors and principal administrators electing to participate in an optional retirement plan), and certain other designated employees in educational related work are eligible for membership.

As of June 30, 2007, participation in the System is as follows:

Retirees and beneficiaries currently receiving benefits
Terminated employees entitled to benefits but not yet receiving
benefits

76,133 69,317

Active plan members

218,141



Total

Employers

363,591 385

Retirement Benefits
The System provides service retirement, disability retirement, and survivor's benefits. Title 47 of the Official Code of Georgia assigns the authority to establish and amend the provisions of the System to the State Legislature. A member is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service.
Normal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of one twelfth of 7% for each month the member is below age 60, or by 7% for each year or fraction thereof by which the member has less than 30 years of service.

2007 Comprehensive Annual Financial Report

21

Financial Section

Notes to Financial Statements June 30, 2007 and 2006

A. Plan Description continued
Retirement Benefits It is also assumed that certain cost of living ad-
justments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Options are available for distribution of the member's monthly pension, at a reduced rate, to a designated beneficiary on the member's death.
Death and Disability Benefits
Retirement benefits also include death and disability benefits, whereby the disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The benefit is based on the member's creditable service (minimum of ten years of service) and compensation up to the time of disability.
The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of ten years of service) and compensation up to the date of death.
Contributions
The System is funded by member and employer contributions as adopted and amended by the Board of Trustees.
Contributions required for fiscal year 2007 were based on the June 30, 2004 actuarial valuation as follows:

Member:

5.00 %

Employer:

Normal

9.85 %

Unfunded accrued liability (0.57) %



Total

9.28 %

Contributions
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions with accumulated interest are reported as net assets held in trust for pension benefits.
SRBP
Beginning July 1, 1997, all members and retired former members in the System are eligible to participate in this plan whenever their benefits under the System exceed the limitation on benefits imposed by IRC 415. At June 30, 2007 and 2006, there were 23 and 19 members, respectively, eligible to participate in this portion of the System. Employer contributions of $276,000 and $227,000 and retirement payments of $280,000 and $227,000 under the SRBP are included in the statement of changes in plan net assets for the years ended June 30, 2007 and 2006, respectively.
B. Summary of Significant Accounting Policies and Plan Asset Matters
Basis of Accounting
The System's financial statements are prepared on the accrual basis of accounting. Contributions from the employers and the members are recognized as additions when due, pursuant to formal commitments, as well as statutory or contractual requirements. Retirement and refund payments are recognized as deductions when due and payable.
Investments
Investments are reported at fair value. Short term investments are reported at cost, which approximates fair value. Securities traded on a national or international exchange are valued at the last reported sales price. No investment in any one organization, except the U.S. Government or its agencies, represents 5% or more of the net assets available for pension benefits. There are no investments in, loans to, or leases with parties related to the System.

22

Teachers Retirement System of Georgia

Notes to Financial Statements June 30, 2007 and 2006

Financial Section

B. Summary of Significant Accounting Policies and Plan Asset Matters continued
Capital Assets
Capital assets are stated at cost less accumulated depreciation. Capital assets costing $5,000 or more are capitalized. Depreciation on capital assets is computed using the straight line method over estimated useful lives of three to forty years. Depreciation expense is included in administrative expenses. Maintenance and repairs are charged to administrative expenses when incurred. When assets are retired or otherwise disposed of, the costs and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in the statements of changes in plan net assets in the period of disposal.
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 plan net assets and changes therein. Actual results could differ from those estimates. The System utilizes various investment instruments. Investment securities, in general, are exposed to various risks, such as interest rate, credit, 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.
C. Investment Program
The System maintains sufficient cash to meet its immediate liquidity needs. Cash not immediately needed is invested in either short term or long term investment securities as directed by the Board of Trustees. All investments are held by agent custodial banks in the name of the System.
Cash
Cash balances are fully insured through the Federal Deposit Insurance Corporation, an agency of the U.S. Government. Fiduciary accounts, such as those of the System, are granted $100,000 of insurance coverage per participant in the System. Temporary cash on

hand not committed for a specific purpose is invested overnight.
Investments State statutes authorize the System to invest in a
variety of short-term and long-term securities as follows:
a) Short-Term
Short-term investments are authorized in the following instruments:
Repurchase and reverse repurchase agreements, whereby the System and a broker exchange cash for direct obligations of the U.S. Government or obligations unconditionally guaranteed by agencies of the U.S. Government or U.S. corporations. The System or broker promises to repay the cash received plus interest at a specific date in the future in exchange for the same securities. The System held repurchase agreements of $2,626,256,000 and $905,623,000 at June 30, 2007 and 2006, respectively.
U.S. Treasury obligations with varying terms up to 360 days.
Other short-term securities authorized, but not currently used, are:
Commercial paper, with a maturity of 180 days or less. Commercial paper is an unsecured promissory note issued primarily by corporations for a specific amount and maturing on a specific day. The System considers for investment only commercial paper of the highest quality, rated P-1 and/or A-1 by national credit rating agencies.
Master notes, an overnight security administered by a custodian bank, and an obligation of a corporation whose commercial paper is rated P-1 and/or A-1 by national credit rating agencies.
Investments in commercial paper or master notes are limited to no more than $100 million in any one name.

2007 Comprehensive Annual Financial Report

23

Notes to Financial Statements June 30, 2007 and 2006

Financial Section

C. Investment Program continued
b) Long-Term
Fixed income investments are authorized in the following instruments:
U.S. and foreign government obligations with terms up to 30 years. The System held U.S. Treasuries of $9,928,109,780 and $11,851,904,300 at June 30, 2007 and 2006, respectively.
Obligations unconditionally guaranteed by agencies of the U.S. Government with terms up to 30 years. The System held agency bonds of $5,317,895,120 and $2,819,957,690 at June 30, 2007 and 2006, respectively.
Corporate bonds with at least an "A" rating by a national rating agency and limited to no more than 5% of total System assets in any one name. Maturities of these securities vary up to a period of 40 years. The System held corporate bonds of $1,869,164,970 and $2,571,935,910 at June 30, 2007 and 2006, respectively.
Private placements are authorized under the same general restrictions applicable to corporate bonds.
Mortgage investments are authorized to the extent that they are secured by first mortgages on improved real property located in the state of Georgia having a loan to value ratio no higher than 75%. Mortgages as a group cannot exceed 10% of total assets or 1% for any one loan.
Equity securities are also authorized (in statutes) for investment as a complement to the System's fixed-income portfolio and as a long-term inflation hedge. By statute, no more than 60% of the total invested assets on a historical cost basis may be placed in equities and no more than 5% in any one corporation. 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 of Investment Services (the "Division") in conjunction with independent advisors. Buy/sell decisions are based on securities meeting rating criteria established by the

Board of Trustees; in-house research considering such matters as yield, growth, and sales statistics; and analysis of independent market research. Equity trades are approved and executed by the Division's staff. Common stocks eligible for investment are approved by the Investment Committee of the Board of Trustees before being placed on an approved list.
Credit Risk: Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations to the Teachers Retirement System. State law limits investments to investment grade securities.
It is the System's investment policy to require that the bond portfolio be of high quality and chosen with respect to maturity ranges, coupon levels, refunding characteristics, and marketability. The System's policy is to require that new purchases of bonds be restricted to high grade bonds rated no lower than "A" by any nationally recognized statistical rating organization. The System's investment in U.S. Agencies was 31.1% of total fixed-income securities and was rated AAA by Standard & Poor's and Aaa by Moody's Investors Service. The System's investment in corporate bonds was 10.9% of total fixed-income securities, which consisted of 8.7% rated AAA/Aaa and 2.2% rated AA/Aa.

24

Teachers Retirement System of Georgia

Notes to Financial Statements June 30, 2007 and 2006

The investment policy requires that repurchase agreements be limited to the purchase of U.S. Treasury or Agency obligations or corporate bonds rated no lower than "A" by any nationally recognized statistical rating organization, with a market value in excess of funds advanced. As of June 30, 2007, the System held repurchase agreements of $2,626,256,000.
Concentration of Credit Risk: Concentration of credit risk is the risk of loss that may be attributed to the magnitude of a government's investment in a single issue. State statutes and the System's investment policy limit investments to no more than 5% of total System net assets in any one corporation. On June 30, 2007, the System did not have debt or equity investments in any one organization, other than those issued by the U. S. Government or its agencies, which represented greater than 5% of plan net assets.

Interest Rate Risk: Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. This risk is managed within the portfolio using the effective duration method. This method is widely used in the management of fixed income portfolios and quantifies to a much greater degree the sensitivity to interest rate changes when analyzing a bond portfolio with call options, prepayment provisions, and any other cash flows. Effective duration makes assumptions regarding the most likely timing and amounts of variable cash flows and is best utilized to gauge the effect of a change in interest rates on the fair value of a portfolio. It is believed that the reporting of effective duration found in the table below quantifies to the fullest extent possible the interest rate risk of the System's fixed income assets.

Effective Duration of Fixed Income Assets and Repurchase Agreements by Security Type





Fixed income and repurchase

Market value,

agreements security type

June 30, 2007

U.S. Treasuries U.S. Agencies Corporate Bonds Repurchase Agreements

$ 9,928,109,780 5,317,895,120 1,869,164,970 2,626,256,000

Total

$ 19,741,425,870

Percent of all fixed income assets
and repurchase agreements
50.3 % 26.9 %
9.5 % 13.3 %
100.0 %

Effective duration (years)
6.3 4.2 6.2 0.0
4.9

Financial Section





Fixed income and repurchase

Market value,

agreements security type

June 30, 2006

U.S. Treasuries U.S. Agencies Corporate Bonds Repurchase Agreements

$ 11,851,904,300 2,819,957,690 2,571,935,910 905,623,000

Total

$ 18,149,420,900

Percent of all fixed income assets
and repurchase agreements
65.3 % 15.5 % 14.2 %
5.0 %
100.0 %

Effective duration (years)
5.3 4.2 5.1 0.0
5.0

2007 Comprehensive Annual Financial Report

25

Notes to Financial Statements June 30, 2007 and 2006

D. Investments Lending Program
State statutes and Board of Trustees' policies permit the System to lend its securities to broker dealers with a simultaneous agreement to return the collateral for the same securities in the future. The System is presently involved in a securities lending program with major brokerage firms. The System lends equity and fixed income securities for varying terms and receives a fee based on the loaned securities' value. 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, and corporate bonds. The collateral value must be equal to at least 102% to 110% of the loaned securities' value, depending on the type of collateral security.
Securities loaned totaled $17,067,376,984 and $16,716,869,674 at market value at June 30, 2007 and 2006, respectively. The collateral value was equal to 105.1% and 104.5% of the loaned securities' value at June 30, 2007 and 2006, respectively. The System's lending collateral was held in the System's name by the tri-party custodian.

Loaned securities are included in the accompanying statements of plan net assets since the System maintains ownership. The related collateral securities are not recorded as assets on the System's statements of plan net assets, 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 No. 28, the System is deemed not to have the ability to pledge or sell 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.

Financial Section

26

Teachers Retirement System of Georgia

Notes to Financial Statements June 30, 2007 and 2006

E. Capital Assets

The following is a summary of capital assets and depreciation information as of June 30 and for the years then ended:

Balance

at June, 2006

Additions Disposals

Balance at June, 2007

Capital Assets:
Land Building Furniture and Fixtures Computer Equipment Computer Software

$ 944,225 2,800,000 347,958 1,151,269 14,979,713 20,223,165

$

--

--

65,689

181,576 --

247,265

$

--

--

--

(204,464) --

(204,464)

$ 944,225 2,800,000 413,647 1,128,381 14,979,713 20,265,966

Accumulated Depreciation:
Building Furniture and Fixtures Computer Equipment Computer Software

(140,000) (227,326) (362,304) (5,991,886) (6,721,516)

(70,000)

--

(32,743) --

(212,638)

180,197

(2,995,943)

--

(3,311,324)

180,197

(210,000) (260,069) (394,745) (8,987,829) (9,852,643)

Capital Assets, Net

$13,501,649

$ (3,064,059)

$ (24,267)

$ 10,413,323

Financial Section

During fiscal year 2007, the System did not experience any capital asset impairment loss with respect to the provisions of GASB Statement No. 42, Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries.

Balance

at June, 2005

Additions Disposals

Balance at June, 2006

Capital Assets:
Land Building Furniture and Fixtures Computer Equipment Computer Software

$ 944,225 2,800,000 333,975 929,324 14,979,713 19,987,237

$

--

--

39,081

620,997 --

660,078

$

--

--

(25,098)

(399,052) --

(424,150)

$ 944,225 2,800,000 347,958 1,151,269 14,979,713 20,223,165

Accumulated Depreciation:
Building Furniture and Fixtures Computer Equipment Computer Software

(70,000) (208,718) (455,499) (2,995,943) (3,730,160)

(70,000) (39,225) (154,696) (2,995,943) (3,259,864)

-- 20,617 247,891
-- 268,508

(140,000) (227,326) (362,304) (5,991,886) (6,721,516)

Capital Assets, Net

$16,257,077

$ (2,599,786) $ (155,642) $ 13,501,649

2007 Comprehensive Annual Financial Report

27

Financial Section

Notes to Financial Statements June 30, 2007 and 2006

F. Due From Fulton County School Employees Pension Fund
As of July 1, 1988, substantially all members of the Fulton County School Employees Pension Fund became members in the System. The transfer involved 3,990 members, at a total cost to the Fulton County School Employees Pension Fund of $168,976,347. The employer's portion of contributions plus accrued interest (maximum 9%) is payable over 21 remaining annual installments.

G. Administrative Expenses
Administrative expenses are reported in the financial statements; however, the actual accounting for the expenses is performed in a separate expense fund. Administrative expenses paid out of System earnings are as follows:

2007

2006

Salaries and Employee Benefits

$ 18,152,511 $ 15,849,016

Other Operating Expenses 7,991,2 79 8,065,471

Total Administrative Expenses

26,143,790

23,914,487

Less Reimbursement by Other State Retirement Systems for Services Rendered on Their Behalf 4,070,4 62 3,741,845

Net Administrative Expenses $ 22,073,328 $ 20,172,642

H. Commitments and Contingencies
In April, 2004, two retirees filed a civil action in Fulton County Superior Court seeking additional benefits retroactive to the time of their retirement dates for a class of those retirees who elected survivorship options and who retired during the preceding twenty year period. Plaintiffs alleged that the System did not use updated mortality tables in the calculation of their benefits. The Superior Court granted summary judgment for the System; however, the judgment was reversed on appeal by the Georgia Supreme Court in October, 2006. The case was remanded back to the trial court to determine liability to plaintiffs and whether any of their claims are barred by applicable statute of limitations. The case has been transferred to the Fulton County Superior Court's Business Case Division (the Court) for resolution.
The ultimate liability to the System is impacted by certain variables that are uncertain until the final decision by the Court, most notably the applicable statute of limitations and any applicable interest rates on such liability. The System anticipates a decision from the Court within the calendar year. Due to the uncertainty surrounding the variables that will be used to calculate the ultimate liability, management cannot reasonably estimate all of the potential possible outcomes. Management has recorded an estimate of the potential liability of approximately $100 million using a six-year statute of limitation ruling and the interest rates used during that time period. This amount is recorded in accounts payable and other liabilities in the accompanying statement of plan net assets as of June 30, 2007. Although the ultimate liability may significantly exceed the amount recorded, management believes that it will not have a material adverse impact on the financial statements of the System.

28

Teachers Retirement System of Georgia

Financial Section

Required Supplementary Schedules See Independent Auditors' Report Schedule of Funding Progress (Dollars in thousands)





Actuarial

Actuarial

Value of

Valuation

Plan Assets

Date

(a)

Actuarial Accrued Liability (AAL) -Entry Age
(b)

6/30/01 6/30/02 6/30/03 6/30/04 6/30/05 6/30/06

$ 38,584,834 $ 37,153,421 40,502,333 39,706,523 42,372,661 41,905,676 44,617,956 44,230,031 46,836,895 47,811,214 49,263,027 51,059,681

Unfunded

AAL

Annual

(UAAL)

Funding Covered

(Funding Excess) Ratio

Payroll

(b-a)

(a/b)

(c)

UAAL
(Funding Excess) as a
Percentage of Covered Payroll
[(b-a)/c]

$ (1,431,413) (795,810) (466,985) (387,925) 974,319 1,796,654

103.9 % 102.0 101.1 100.9 98.0 96.5

$ 7,306,855 7,617,869 8,261,961 8,038,118 8,252,598 8,785,985

(19.6) % (10.4) (5.7) (4.8) 11.8 20.4

This data, except for annual covered payroll, was provided by the System's actuary.

Schedule of Employer Contributions (Dollars in thousands)

Years Ended June 30,
2001 2002 2003 2004 2005 2006

State Annual Required
Contribution
$ 808,480 716,917 768,673 782,301 815,693 855,626

Percentage Contributed
100 % 100 100 100 100 100

See accompanying notes to required supplementary schedules.

2007 Comprehensive Annual Financial Report

29

Required Supplementary Schedules See Independent Auditors' Report
Notes to Required Supplementary Schedules
Schedule of Funding Progress The actuarial value of assets recognizes a portion of the difference between the market value of assets and
the expected actuarial value of assets, based on the assumed valuation rate of return. The amount recognized each year is 14% of the difference between market value and expected actuarial value. The actuarial value of assets is limited to a range between 80% and 120% of market value.
Schedule of Employer Contributions The required employer contributions and percent of those contributions actually made are presented in the
schedule.
Actuarial Assumptions The information presented in the required supplementary schedules was determined as part of the actuarial
valuations at the dates indicated. Since the previous valuation on June 30, 2005, the rate of salary increases was revised to more closely reflect the actual and anticipated experience of the System and the remaining amortization period was increased from 14 years to 30 years. Additional information from the actuarial valuations for the most recent two year period is as follows:

Valuation Date Actuarial Cost Method Amortization Method Remaining Amortization Period Asset Valuation Method Actuarial Assumption:
Investment Rate of Return Projected Salary Increases Inflation Rate Post-Retirement Cost-of-Living Adjustments

June 30, 2006 Entry Age Level Percent of Pay, Open 30 Years 7-Year Smoothed Market
7.50% 3.20 to 8.60% 3.75% 3% Annually

June 30, 2005 Entry Age Level Percent of Pay, Open 14 Years 5-Year Smoothed Market
7.50% 3.20 to 8.60% 3.75% 3% Annually

Financial Section

30

Teachers Retirement System of Georgia

AdditionalInformationAdministrative Expenses For the Years ended June 30, 2007 and 2006

Financial Section

Personal Services:
Salaries and Wages Retirement Contributions Health Insurance FICA Miscellaneous
Total Personal Services
Communications:
Postage Publications and Printing Telecommunications Travel
Total Communications
Professional Services:
Computer Services Contracts Actuarial Services Audit Fees Legal Services Medical Services
Total Professional Services
Management Fees:
Building Maintenance Total Management Fees
Other Services and Charges:
Temporary Services Repairs and Maintenance Supplies and Materials Courier Services Depreciation Expense Loss on Disposal of Equipment Miscellaneous Office Equipment
Total Other Services and Charges
Total Administrative Expenses
Less Reimbursement by Other State Retirement Systems for Services Rendered on Their Behalf
Net Administrative Expenses

2007
$ 13,596,829 1,408,353 2,256,863 844,744 45,722 18,152,511

2006
$ 12,083,198 1,254,557 1,714,485 754,074 42,702 15,849,016

189,497 327,250 216,065 121,721
854,533

216,351 403,399 184,413 55,107
859,270

2,312,528 2,520
106,156 73,800 46,021 144,416 2,685,441
724,875 724,875

1,712,703 9,944 82,801 86,450 36,000
139,798
2,067,696
723,975 723,975

45,619 27,834 211,077 11,636 3,311,324 24,267 94,673
3,726,430
26,143,790

12,401 20,109 831,768 13,891 3,259,864 155,642 120,060
795
4,414,530
23,914,487

4,070,462 $ 22,073,328

3,741,845 $ 20,172,642

See accompanying independent auditors' report.

2007 Comprehensive Annual Financial Report

31

AdditionalInformationInvestment Expenses
For the Years ended June 30, 2007 and 2006

2007

Investment Advisory and Custodial Fees Commissions and Fees Miscellaneous

$ 26,996,821 19,209,149 3,317,091

Total Investment Expenses

$ 49,523,061

See accompanying independent auditors' report.

2006
$ 23,906,748 16,098,725 2,439,260
$ 42,444,733

Financial Section

32

Teachers Retirement System of Georgia

Investment Overview

Investment Section

The financial markets continued to be volatile, as has been the case over the last ten years. The System has continued to invest in a mix of high quality bonds and stocks as it has historically done.
These types of investments have allowed the System to participate in rising markets while moderating the risks on the downside. New funds continue to be invested in high quality securities. A high quality balanced fund has proven to be a successful strategy in a variety of markets over a long period of time.
As in previous years, maintaining quality was a primary goal and was successfully met. "Conservation of Capital" and "Conservatism" continue to be the principal guides in investment decisions. The Board of Trustees continued to use a diversified portfolio to accomplish these objectives.
U.S. economic growth slowed during the first three quarters of the fiscal year, but ended the last quarter up at an annualized rate of 3.8%. Consumer and business spending remained steady throughout the period, but new housing starts and home sales fell dramatically. Employment levels also showed weakness. Oil prices were very volatile, beginning the year at $73 a barrel, falling to a low of $50 in January, and then climbing back to $71 at the end of the year. Despite these issues, corporate profits were solid, but began to decelerate to single-digit growth.
Studies undertaken to evaluate the investment returns of pension funds over very long time horizons indicate that the asset allocation decision has the most impact on the fund's returns. Although the returns for the various asset categories vary from year to year, over the long term equities have outperformed fixed income and cash by a very wide margin. For that reason, the System has maintained a maximum equity exposure with the remainder of the fund in fixed income securities designed to generate income and preserve capital.
Returns for rolling three and five year periods are presented in this section. These longer time periods, in our opinion, allow for more valid evaluation of returns, both in absolute terms and relative to an asset class index, by reducing emphasis on the short-term volatility of markets.

Equity markets rose significantly during this period. The return for the S&P 500 Index was 21% while the Dow Jones Industrial Average Index rose 23%. Among individual companies, returns varied depending upon the company's size, industry, and exposure to global markets. Foreign stocks clearly outpaced the rest of the markets. The MSCI EAFE Index returned 27% and MSCI Emerging Market Index returned 45%.
In a change from last year, large capitalization domestic stocks outperformed small and medium capitalization domestic stocks. The S&P 600 Small Capitalization Index rose 16%, well above its ten-year average return of 11%, but still below the S&P 500's 21% return.
These good overall returns can be explained by relatively low interest rates, healthy corporate cash flows, and an unprecedented level of merger and acquisition activity. The exceptional foreign returns are a function of both the rapid growth in developing countries and a decline in the U.S. dollar relative to other currencies.
Returns for the fixed-income markets were below average this year. Yields on long-term Treasury bonds began the period at 5.2% and ended the year at 5.1%, but they spent most of the time well below 5%, falling to a low of 4.5% in December. Overall the ten-year U.S. Treasury Bond returned 5.0% and the thirty-year U.S. Treasury Bond returned 5.5%. Similarly, shortterm treasury bills also returned 5.0%.
Our primary benchmark, the Lehman Government/ Credit Index rose 6.0%. It is a shorter maturity index containing higher yielding corporate bonds as well as Treasuries. Lower quality bonds outperformed higher quality bonds as evidenced by the 6.0% return for AAA & AA versus 7.5% for BBB bonds.
In summary, the investment status of the System is excellent. The high quality of the System's investments is in keeping with the continued policy of "Conservatism" and "Conservation of Capital."
Prepared by the Division of Investment Services

2007 Comprehensive Annual Financial Report

33

Time-WeightedRates of Return

2003 20 15 10 5 0 -5 -10 -15
5yr 3yr

2004

Equities S&P 500

2005

2006

2007

3-Year:
Equities S&P 500
5-Year:
Equities S&P 500

5yr 3yr

5yr 3yr

5yr 3yr

5yr 3yr

Equities (%)

3-Year:
Equities S&P 500
5-Year:
Equities S&P 500

2005
8.4% 8.3%

2006 2007
13.0% 13.1% 11.2% 11.7%

-1.4% -2.4%
2003
-10.6% -11.2%

3.8% 2.5%
2004
.1% -.6%

11.2% 10.7%

-1.6% -1.6% -1.6% -2.1%

Investment Section

2003 12 10 8 6 4 2 0
5yr 3yr

Fixed Income Lehman Govt/Credit

2004

2005

2006

2007

5yr 3yr

5yr 3yr

5yr 3yr

5yr 3yr

Fixed Income (%)

3-Year:
Fixed Income Lehman Govt/Credit
5-Year:
Fixed Income Lehman Govt/Credit
3-Year:
Fixed Income Lehman Govt/Credit
5-Year:
Fixed Income Lehman Govt/Credit

2005 2006 2007
6.0% 1.4% 3.7% 6.4% 1.6% 3.8%
7.8% 5.4% 4.4% 7.7% 5.1% 4.7%
2003 2004
11.3% 7.2% 10.8% 6.7%
8.1% 7.7% 7.8% 7.1%

2003 20
15
10
5
0
-5 5yr 3yr

Total Portfolio

2004

2005

CPI
2006

5yr 3yr

5yr 3yr

5yr 3yr

2007 5yr 3yr

3-Year:
Total Portfolio CPI
5-Year:
Total Portfolio CPI
3-Year:
Total Portfolio CPI
5-Year:
Total Portfolio CPI

2005 2006 2007
7.4% 7.9% 9.5% 2.7% 3.4% 3.2%
2.5% 4.8% 8.5% 2.2% 2.7% 3.0%
2003 2004
-1.6% 3.3% 2.2% 2.1%
2.6% 2.4% 2.4% 2.7%

Total Portfolio (%)

34

Teachers Retirement System of Georgia

Asset Allocation

Equities

Fixed Income

70%

Short-term Securities

60%

50%

40%

30%

20%

10%

0%

02

03

04

05

06

07

Asset Allocation at Fair Value

Investment Section

Investment Summary

Asset Allocation at June 30
Equities Fixed Income Short-Term Securities

2002
53.9% 44.0% 2.1%

2003
51.5% 46.2% 2.3%

2004
59.4% 39.0% 1.6%

Asset Allocation at June 30 (in millions)

Equities

$20,142

Fixed Income

16,446

Short-Term Securities 781

Total Investments

$37,369

$20,059 17,961
899 $38,919

$25,121 16,469
677 $42,267

2005 2006 2007

60.4% 38.0% 1.6%

61.2% 36.8% 2.0%

62.5% 32.5% 5.0%

$27,122 17,075
739 $44,936

$28,654 17,244
906 $46,804

$32,929 17,115 2,626
$52,670

2007 Comprehensive Annual Financial Report

35

Portfolio Detail Statistics

Twenty Largest Equity Holdings*

Shares

Company

11,377,800 4,688,278 13,214,900
643,550 6,282,969 5,009,422 3,530,600 5,911,094 9,874,300 6,398,210 5,296,900 3,484,320 8,613,142 1,786,300 3,518,500 3,485,780 3,042,941 4,894,900 4,671,044 2,734,000

General Electric Co. Exxon Mobil Corp. Microsoft Corp. Google Inc. Citigroup Inc. Procter & Gamble Co. Schlumberger Ltd. Bank of America Corp. Cisco Systems Inc. AT&T Inc. Wal-Mart Stores Inc. Pepsico Inc. Pfizer Inc. Apple Inc. American Express Co. Johnson & Johnson American International Group Inc. QUALCOMM Inc. Hewlett-Packard Co. Altria Group Inc.

Fair Value
$ 435,542,184 393,252,759 389,443,103 336,383,585 322,253,480 306,526,532 299,889,164 288,993,386 274,999,255 265,525,715 254,833,859 225,958,152 220,238,041 218,000,052 215,261,830 214,793,764 213,097,158 212,389,711 208,421,983 191,762,760

Total of 20 Largest Equity Holdings

$ 5,487,566,473



Total Equity Holdings

$ 32,928,370,326

Investment Section

Ten Largest Fixed-Income Holdings*



Maturity

Description

Date

U.S. Treasury Note U.S. Treasury Note U.S. Treasury Bond U.S. Treasury Note U.S. Treasury Note U.S. Treasury Bond U.S. Treasury Note General Electric Cap Corp U.S. Treasury Note FNMA

05/15/17 11/15/16 02/15/36 11/30/08 11/30/07 11/15/28 01/15/10 02/02/09 09/30/08 07/25/08

Interest Rate (%)
4.500 % 4.625 4.500 4.625 4.250 5.250 3.625 3.500 4.625 3.750

Par Value

Fair Value

$ 1,753,000,000 1,527,000,000 1,481,000,000 789,000,000 725,000,000 680,000,000 650,000,000 607,000,000 574,000,000 566,000,000

$ 1,680,688,750 1,479,876,780 1,341,001,070 785,796,660 723,071,500 684,678,400 630,500,000 590,428,900 571,445,700 557,159,080

Total of 10 Largest Fixed-Income Holdings $ 9,044,646,840

Total Fixed-Income Holdings $ 17,115,169,870

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

36

Teachers Retirement System of Georgia

Actuary's Certification Letter

Actuarial Section

June 7, 2007
Board of Trustees, Teachers Retirement System of Georgia Suite 100, Two Northside 75 Atlanta, GA 30318
Members of the Board:
Section 47-3-23 of the law governing the operation of the Teachers Retirement System of Georgia provides that the actuary shall make annual valuations of the contingent assets and liabilities of the Retirement System on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2006. The report indicates that annual employer contributions at the rate of 9.28% of compensation for the fiscal year ending June 30, 2009 are sufficient to support the benefits of the System. 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.

actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for funding purposes meet the parameters set for the disclosures presented in the financial section by Governmental Accounting Standards Board (GASB) Statement Nos. 25 and 27. The funding objective of the plan is that contribution rates over time will remain level as a percent of payroll. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a level percent of payroll. Gains and losses are reflected in the unfunded accrued liability, which is amortized as a level percent of payroll within a 30year period.
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. 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.

In our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. Since the previous valuation, the method for determining the actuarial value of assets has been changed from a method that recognizes asset gains or losses over a five-year period to a method that recognizes asset gains or losses over a seven-year period. The valuation takes into account the effect of all amendments to the System enacted through the 2006 session of the General Assembly. The valuation reflects the impact of House Bill 400, which granted increases in allowances effective July 1, 2006 to retired members and beneficiaries retired before July 1, 1987. 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.

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 System.
Sincerely yours,

The System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the

Edward A. Macdonald, ASA, FCA, MAAA President

2007 Comprehensive Annual Financial Report

37

Actuarial Section

Summary ofActuarial Assumptions & Methods

The laws governing the Teachers Retirement System of Georgia (the "System") provide that an actuary perform an annual valuation of the contingent assets and liabilities of the System and 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 actuarial valuation of the System prepared as of June 30, 2006, was made on the basis of the interest rate assumption approved by the Board on November 19, 2003, and the mortality, rates of separation and salary increase tables approved by the Board on March 22, 2006.
The more pertinent facts and significant assumptions underlying the computations included in the June 30, 2006, report are as follows:
a) Actuarial Method UsedThe actuarial cost method used to determine funding is the entry age actuarial cost method. Gains and losses are reflected in the unfunded accrued liability. Adopted December 30, 1976.
b) Investment Return7.50% per annum, compounded annually. Adopted November 19, 2003.
c) Earnings ProgressionSalaries are expected to increase 3.20% to 8.60% annually depending upon the employee's age. Includes inflation at 3.75%. Adopted March 22, 2006.
d) Death, Disability and Withdrawal RatesDeath, disability and withdrawal rates for active employees and service retirement tables are based upon the System's historical experience. The death-after-retirement rates are based on the 1994 GroupAnnuity Mortality Table (set forward one year for males). Adopted March 22, 2006.
e) Asset Valuation Method7-year smoothed market actuarial value. The actuarial value of assets recognizes a portion of the difference between the market value of the assets and the expected value of assets, based on the assumed valuation rate of return. The amount recognized each year is 14% of the difference between market value and actuarial expected value. The actuarial value of assets is limited to a range between 80% and 120% of market value. Adopted March 22, 2006.

f) Service Retirement BenefitThe service benefit (pension) paid to members is an annuity that is owed to them at retirement that will provide a total annual pension equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. It is also assumed that certain cost-of-living adjustments will be made in future years.
g) Actuarially Determined Unfunded Accrued Liability The present value of the unfunded accrued liability, based on unaudited data provided the actuary by the System, was approximately $1.8 billion at June 30, 2006.
h) Required Contributions (% of compensation) Adopted June 20, 2007. Contributions required by the annual actuarial valuation as of June 30, 2006, to be made for the year ended June 30, 2009:

(1) Member
(2) Employer: Normal Unfunded Accrued Liability Total

5.00%
8.15% 1.13% 9.28%

38

Teachers Retirement System of Georgia

Actuarial Section

Summary ofActuarial Assumptions & Methods

Service Retirement
Adopted March 22, 2006

Annual Rate*

Age

Men

50

28%

55

29

60

23

61

23

62

29

63

23

64

25

Women 23% 28 30 25 31 27 26

Annual Rate*

Age

Men

Women

65

32%

30%

66

25

30

67

30

26

68

28

26

69

28

26

70

100

100

*It is also assumed that 10% of eligible active members will retire each year with a reduced early retirement
benefit and that an additional 5% of active members will retire in their first year of eligibility for unreduced retirement with 30 years of service.

Separation Before Service Retirement
Adopted March 22, 2006

Annual Rate of



Age

Death

Disability

0-4 Yrs

MEN

20

0.05%

25

0.06

30

0.08

35

0.09

40

0.10

45

0.15

50

0.23

55

0.40

60

0.71

64

0.11

0.05% 0.05 0.07 0.07 0.09 0.11 0.25 0.53 -- --

39.00% 18.00 16.00 15.00 15.00 13.00 11.00 12.00
-- --

20

0.03%

25

0.03

30

0.03

35

0.05

40

0.07

45

0.09

50

0.13

55

0.21

60

0.39

64

0.67

0.03% 0.03 0.04 0.05 0.07 0.11 0.20 0.63 -- --

WOMEN
30.00% 15.00 16.00 15.00 12.00 11.00 11.00 12.00
-- --

Withdrawal 5-9 Yrs

10+ Yrs

-- %-- %

11.00--

6.00

7.00

6.00

3.00

6.00

2.00

6.00

2.00

4.50

2.00

4.50

2.00

--

--

--

--

--% 13.00 8.00 8.00 6.00 5.00 4.50 4.50
-- --

--% -- 5.00 4.00 3.00 2.00 2.00 3.00 -- --

2007 Comprehensive Annual Financial Report

39

Actuarial Section

Actuarial Valuation Data

Active Members

Active Members



Annual

Fiscal

Payroll

Average

Year(1)

Members

(000's)

Pay

2001 2002 2003 2004 2005 2006

192,654 199,029 205,453 198,572 199,088 206,592

$ 7,306,855 7,617,869 8,261,961 8,083,118 8,252,598 8,785,985

$ 37,927 38,275 40,213 40,706 41,452 42,528

% Increase
0.3 % 0.9 5.1 1.2 1.8 2.6

Retirees and Beneficiaries

Added to Roll Removed from Roll

Roll- End of Year



Annual

Annual

Annual

Fiscal

Allowances

Allowances Allowances

Year(1) Number (000's) Number

(000's)

Number (000's)

2001

5,246 $ 171,642

1,584

$ 26,671

50,767 $ 1,178,295

2002

4,858

169,833

1,403

26,286

54,222 1,321,842

2003

5,097

188,458

1,627

30,581

57,692 1,479,719

2004

5,381

206,251

1,483

29,525

61,590 1,656,445

2005

6,176

230,973

1,594

33,139

66,172 1,854,279

2006

5,691

223,279

1,644

37,087

70,219 2,040,471

% Increase in Annual Allowances
14.0 %
12.2
11.9
11.9
11.9
10.0

Average Annual Allowance $ 23,210
24,378 25,649 26,895 28,022 29,059

(1) Fiscal year refers to the actuarial valuation performed as of June 30 of that year and determines the funding necessary for the fiscal year beginning two years after the valuation date. (Prior to fiscal year 2003 the actuarial valuation performed as of June 30 of that year determined the funding necessary for the subsequent fiscal year.) An actuarial valuation for the fiscal year ended June 30, 2007 is currently in process and was not available for this analysis.

40

Teachers Retirement System of Georgia

Actuarial Section

Actuarial Valuation Data

Solvency Test (in thousands)


Fiscal
Year*

Aggregate Actuarial Accrued Liabilities For

(1) Active Member

(2) Retirees
and

(3) Active Members Actuarial (Employer-Financed Value of

Contributions Beneficiaries

Portion)

Assets

Portion of Accrued Liabilities Covered by Assets
(1) (2) (3)

2001 2002

$ 4,251,816 4,487,248

$ 14,075,798 15,915,320

$ 18,825,807 19,303,955

$ 38,584,834 100.0% 100.0% 100.0% 40,502,333 100.0 100.0 100.0

2003 2004 2005 2006

4,739,109 4,923,415 5,171,813 5,417,408

17,581,264 19,870,020 23,229,592 25,653,251

19,585,303 19,436,596 19,409,809 19,989,022

42,372,661 44,617,956 46,836,895 49,263,027

100.0 100.0 100.0 100.0

100.0 100.0 100.0 100.0

100.0 100.0 95.0 91.0

* Fiscal year refers to the actuarial valuation performed as of June 30 of that year and determines the funding necessary for the fiscal year beginning two years after the valuation date. (Prior to fiscal year 2003 the actuarial valuation performed as of June 30 of that year determined the funding necessary for the subsequent fiscal year.) An actuarial valuation for the fiscal year ended June 30, 2007 is currently in process and was not available for this analysis.

Member and Employer Contribution Rates

Fiscal Year
2003 2004 2005 2006 2007 2008

Member
5.00% 5.00 5.00 5.00 5.00 5.00

Employer
9.24% 9.24 9.24 9.24 9.28 9.28

2007 Comprehensive Annual Financial Report

41

Actuarial Section

Actuarial Valuation Data

Analysis of Financial Experience (in millions)

Item
Interest Added to Previous Unfunded Accrued Liability
Accrued liability contribution Experience:
Valuation Asset Growth Pensioners' Mortality Turnover and Retirements (1) New Entrants Salary Increases Method Changes Amendments (2) Assumption Changes (3)
Total Increase (Decrease)

Analysis of the Change in Unfunded Accrued Liability Increase (Decrease) During the Years Ended June 30,

2006

2005

2004

2003

2002

2001

$ 73.1 51.9

$ (29.1) $ (35.0) $ (57.7)

49.4

79.6

77.4

675.3 (40.7) 65.8 143.5 144.1 (339.2) 48.5 --
$ 822.3

516.4 (14.0) 59.9 104.0 (227.5) 313.7 -- 589.4
$1,362.2

507.5 48.8 26.8 118.5
(667.1) -- -- --
$ 79.1

788.5 (30.0) 277.0 149.1 372.4 -- 78.7 (1,326.6)
$ 328.8

$ (103.8) $ (60.0)

41.1

(169.1)

667.7 (35.1) (236.5) 99.9 202.3 -- -- --
$ 635.6

(269.4) (10.9) (553.8) 92.7 (319.3) -- -- 657.9
$ (631.9)

(1) Turnover and Retirements 2004 - Reflects impact of change in reported data due to a change in computer system. Previous years' data reported active members as any participant who contributed during the fiscal year. The 2004 data reported active members as only those who were contributing any of the last three months of the fiscal year.
(2) Amendments 2003 - Reflects an ad hoc cost-of-living adjustment of 0.5% to all retirees as of July 1, 2002.
2006 - Reflects the impact of House Bill 400 which increased allowances effective July 1, 2006 to retirees and beneficiaries retired before July 1, 1987.
(3) Assumption Changes 2001 - Reflects a reduction in interest rate assumption from 7.50%, to 7.25% and a decrease in the salary increase assumption by 0.25% at each age.
2003 - Reflects an increase in interest rate assumption from 7.25% to 7.50% and an increase in the salary increase assumption by 0.25% at each age.
2005 - The assumed rates of withdrawal, disability, retirement, and mortality and the assumed rates of salary increase have been revised to more closely reflect the actual and anticipated experience of the System. In addition, the administration expense load was increased to 0.25% from 0.15% of active payroll.

42

Teachers Retirement System of Georgia

Statistical Section Overview

The statistical section presents additional information to provide financial statement users with added historical perspective, context, and detail to assist in using the information in the financial statements, notes to financial statements, and required supplementary information to understand and assess the System's financial condition.

Operating Information
The schedules presented on pages 46 through 52 contain benefits, service and employer data to help the reader understand how the System's financial report relates to the services of the System and the activities it performs.

Financial Trends
The schedules presented on page 44 and page 45 contain trend information to help the reader understand how the System's financial position has changed over time.

Statistical Section

2007 Comprehensive Annual Financial Report

43

Statistical Section

Financial Trends
Additions by Source (in thousands)





Net

Fiscal

Member

Employer

Investment

Year

Contributions

Contributions Income (Loss)

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

$ 305,752 330,517 355,948 369,006 403,952 438,998 448,929 464,931 485,721 524,940

$ 710,409 776,178 779,571 808,480 716,917 768,673 782,301 815,693 855,626 927,371

$ 6,561,731 3,889,927 2,788,202 (2,099,972) (1,610,477) 1,669,768 3,794,733 3,279,505 2,691,062 6,792,341

Total Additions to (Deductions From) Plan Net Assets
$ 7,577,892 4,996,622 3,923,721 ( 922,486) ( 489,608) 2,877,439 5,025,963 4,560,129 4,032,409 5,244,652

Contributions were made in accordance with actuarially determined contribution requirements.

Deductions by Type (in thousands)

Fiscal Year

Service

Benefit Payments

Partial Lump-Sum Option (1)

Lump-Sum

Survivor Supplemental Death

Disability Benefits

(2)
Payments Settlement

Total Benefit Payments

Net Administrative
Expense

Refunds

Total Deductions From Plan Net Assets



1998 $ 707,595 $ -- $ 27,700 $ 38,760 $ 4,949 $ 1,578 $ 780,582 $ 6,637 $ 42,098 $ 829,317

1999 786,963

--

30,302 41,852 4,628 1,446

865,191 7,810 42,911

915,912

2000 923,049

--

34,160 48,063 4,334 1,962 1,011,568 9,058 44,718 1,065,344

2001 1,058,683

--

37,118 52,528 3,881 1,166 1,153,376 10,502 58,831 1,222,709

2002 1,181,838

--

40,418 57,178 3,582 1,355 1,284,371 15,966 41,250 1,341,587

2003 1,323,871

--

43,545 62,223 3,120 1,881 1,434,640 14,804 40,883 1,490,327

2004 1,481,710

--

47,002 65,821 2,757 1,177 1,598,467 15,378 42,580 1,656,425

2005 1,656,652 15,653 50,959 72,025 2,398 1,791 1,799,478 19,558 50,491 1,869,527

2006 1,863,194 26,601 62,773 35,394 2,093 1,376 1,991,431 20,173 53,138 2,064,742

2007 2,128,927 33,378 70,431 46,670 1,842 1,702 2,282,950 22,073 52,875 2,357,898

(1) Partial Lump-Sum Option Plan became effective July 1, 2004. (2) Supplemental payments to retirees who belong to a local retirement system.



44

Teachers Retirement System of Georgia

Financial Trends

Changes in Net Assets (in thousands)





Total



Additions

Fiscal

to Plan

Year

Net Assets

1998

$ 7,577,892

1999

4,996,622

2000

3,923,721

2001

(922,486)

2002

(489,608)

2003

2,877,439

2004

5,025,963

2005

4,560,129

2006

4,032,409

2007

8,244,652

Total Deductions from Plan Net Assets $ 829,317
915,912 1,065,344 1,222,709
1,341,587 1,490,327
1,656,425 1,869,527 2,064,742 2,357,898

Changes in Plan Net Assets $ 6,748,575 4,080,710 2,858,377 (2,145,195) (1,831,195) 1,387,112 3,369,538 2,690,602 1,967,667 5,886,754

Statistical Section

2007 Comprehensive Annual Financial Report

45

Operating Information

Benefit Payment Statistics

2007 2006 2005 2004 2003 2002 2001 2000 1999 1998

10

20

Number of Retirees

76,133

70,239 66,282

61,590 57,692 54,222

50,767 47,105

43,732

41,420

30

40

50

60

70

80

Statistical Section

46

$25

$2,283.0

$20

$1,991.4 $1,799.5

$1,598.5

$15

$1,434.6

$10

$865.2 $1,011.6 $1,153.4 $1,284.4

$780.6

$5

$0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Annual Benefit (in millions)

$2,600

Average Monthly Benefit (1)

$2,499

$2,300 $2,000

$1,893

$2,072 $1,974

$2,363 $2,262 $2,163

$1,790

$1,700

$1,649

$1,570

$1,400 1998

1999

2000 2001

2002

2003

2004

2005

2006

2007

(1) Retirees who belonged to a local retirement system and who receive supplemental payments are not included.
Teachers Retirement System of Georgia

Operating Information

Member Withdrawal Statistics

2007 2006 2005 2004 2003 2002 2001 2000 1999 1998
$25 6

Number of Members
8,251 8,649
8,518 7,805 7,714
9,120

9,923

9,828

9,803

7

8

9

10

11

12,563

12

13

Statistical Section

$60

$58.8

$55

$50

$45 $42.1 $42.9
$40

$44.7

$50.5

$53.1

$52.3

$41.3

$42.6 $40.9

$35 1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Annual Withdrawal (in millions)

$6,500 $6,000

Average Withdrawal

$5,929

$6,338 $6,139

$5,500

$5,000
$4,500 $4,294
$4,000

$4,366

$4,507

$4,683

$5,458 $5,302
$4,523

$3,500 1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2007 Comprehensive Annual Financial Report

47

Statistical Section

Operating Information

Average Monthly Benefit Payments





As of Fiscal Years Ended

June 30,

10 - 15

Years Credited Service

16 - 20 21 - 25

26 - 30 Over 30

1998 Average monthly benefit Average final average salary Number of retirees

$ 565.70 $2,020.00
575

$ 943.30 $2,739.24
419

$1,370.06 $3,044.12
485

$2,197.00 $3,798.56
1,013

$2,718.23 $4,398.57
896

1999

Average monthly benefit

$ 633.00 $ 995.24 $1,417.05

$2,265.15 $2,901.89

Average final average salary

$2,261.00 $2,854.55 $3,177.89

$3,675.51 $4,564.05

Number of retirees

591

426

522

1,147

928



2000

Average monthly benefit

$ 631.36 $1,074.51 $1,432.55

$2,373.56

Average final average salary

$2,253.00 $3,096.25 $3,178.02

$3,947.94

Number of retirees

687

414

657

1,819



$3,121.26 $4,786.21
1,237

2001

Average monthly benefit

$ 639.66 $1,184.73 $1,549.76

$2,474.70 $3,198.55

Average final average salary

$2,295.08 $3,103.29 $3,403.14

$4,251.56 $5,069.71

Number of retirees

751

447

633

2,017

1,398



2002

Average monthly benefit

$ 669.01 $1,129.23 $1,646.88

$2,624.62

Average final average salary

$2,499.32 $3,627.31 $3,545.14

$4,433.46

Number of retirees

721

445

614

1,795



$3,322.04 $5,070.61
1,283

2003

Average monthly benefit

$ 783.71 $1,526.45 $1,859.12

$2,604.05

Average final average salary

$2,673.99 $3,339.27 $3,745.58

$4,401.55

Number of retirees

807

483

545

1,714



$3,462.68 $5,216.65
1,661

2004

Average monthly benefit

$1,405.03 $1,351.04 $1,895.12

$2,763.31 $3,557.04

Average final average salary

$5,017.00 $3,283.34 $3,823.40

$4,471.74 $5,389.07

Number of retirees

906

579

630

1,864

1,611



2005

Average monthly benefit

$ 729.34 $1,216.78 $1,751.04

$2,575.64 $3,474.65

Average final average salary

$2,960.22 $3,315.00 $4,014.56

$4,511.41 $5,345.03

Number of retirees

907

689

693

1,379

2,545



2006

Average monthly benefit

$ 759.49 $1,236.93 $1,874.90

$2,356.35 $3,361.85

Average final average salary

$3,002.19 $3,273.99 $4,036.61

$4,571.12 $5,338.88

Number of retirees

815

651

653

718

2,780



2007

Average monthly benefit Average final average salary Number of retirees

$ 757.50 $3,193.24
975

$1,246.18 $3,580.49
704

$1,782.60 $4,061.53
758

$2,350.01 $4,669.55
729

$3,330.98 $5,406.13
2,725



48

Teachers Retirement System of Georgia

Statistical Section

Operating Information

Retired Members by Type of Benefit

Amount of Number of Type of Retirement (1)

Monthly Benefit Retirees A

B

C

D Maximum Opt-1

Option Selected (2) Opt-2 Opt-3 Opt-4

Opt-2 Pop-Up

Opt-3 Pop-Up

$ 1 - 1,250 943 434 89 174

251 - 1,500 4,164 3,271 513 366

501 - 1,750 4,904 3,990 512 370

751 - 1,000 4,760 3,862 510 332

1,001 - 1,250 3,899 3,199 411 256

1,251 - 1,500 3,674 3,073 366 220

1,501 - 1,750 3,568 3,075 325 164

1,751 - 2,000 3,644 3,208 309 126

2,001 - 2,250 3,898 3,473 317 108

2,251 - 2,500 4,653 4,326 235 92

2,501 - 2,750 5,023 4,759 190 74

2,751 - 3,000 5,621 5,474 104 43

3,001 - 3,250 5,132 5,039 57 36

3,251 - 3,500 4,414 4,345 33 36

3,501 - 3,750 3,380 3,334 22 24

3,751 - 4,000 2,631 2,609

8 14

4,001 - 4,250 1,923 1,899 15

9

4,251 - 4,500 1,534 1,512

7 15

4,501 - 4,750 1,284 1,271

4

9

4,751 - 5,000 1,044 1,029

2 13

Over 5,000 4,384 4,341 11 32

Totals 74,477 67,523 4,040 2,513

246 281

11 264

14 2,893

85

718

32 3,453 133 798

56 3,250 138 721

33 2,605 119 618

15 2,376 110 626

4 2,423 111 497

1 2,463 125

503

0 2,673 138 462

0 3,270 159 496

0 3,541 209 494

0 4,095 268 411

0 3,786 239 370

0 3,252 236 312

0 2,508 163 245

0 1,912 136 184

0 1,376

97

172

0 1,054

89

135

0 844

67

124

0 685

70

89

0 2,625 235 516

401 51,365 2,938 8,755

48

53

29

163

72 150

217

46 150

257

36 185

228

33 159

231

42 163

220

39 165

231

44 165

262

56 188

265

80 226

246

71 280

271 105 271

229

87 226

241

70 162

158

66 115

177

54

93

114

38

66

110

32

57

112

40

51

94

27

36

492 196 135

4,366 1,287 3,072

11 69 75 117 104 111 109 112 119 157 182 200 195 141 125 75 60 57 46 43 183 2,291

(1) Type of Retirement A - Service B - Disability C - Survivor benefit D - Supplemental payments to retirees who belonged to a local retirement system.
(2) Refer to Introductory Section, pages 12 and 13 for descriptions of Options.

2007 Comprehensive Annual Financial Report

49

Operating Information

Principal Participating Employers






2007

Employers

Covered Employees Rank

Percentage of Total System







2000(1)

Employers

Covered Employees Rank

Percentage of Total System

Gwinnett County Schools Cobb County Schools DeKalb County Schools Fulton County Schools University of Georgia Clayton County Schools Atlanta City Schools Chatham County Schools Muscogee County School District Richmond County Schools
All Others
Total

15,626

1

11,996

2

11,726

3

9,407

4

8,059

5

5,560

6

5,487

7

4,058

8

3,894

9

3,828 10

7.16% Gwinnett County Schools

5.50 DeKalb County Schools

5.38 Cobb County Schools

4.31 University of Georgia

3.69 Fulton County Schools

2.55 Medical College of Georgia

2.52 Atlanta City Schools

1.86 Clayton County Schools

1.79 Chatham County Schools

1.75

Muscogee County School District

138,500

63.33 All Others

218,141

100.00% Total

10,438

1

10,349

2

9,766

3

8,575

4

7,354

5

6,338

6

6,131

7

5,075

8

4,070

9

4,025 10

5.44% 5.39 5.09 4.47 3.83 3.30 3.19 2.64 2.12 2.10

119,787

62.43

191,908

100.00%

(1) Data by employer is unavailable prior to fiscal year 2000.

Statistical Section

Participating Employers
Universities and Colleges
Abraham Baldwin Agricultural College
Albany State University Armstrong Atlantic State
University Atlanta Metropolitan College Augusta State University Bainbridge College Clayton College and State
University Coastal Georgia Community
College Columbus State University Dalton State College Darton College East Georgia College Fort Valley State University Gainesville College Georgia College and State
University Georgia Gwinnett College Georgia Highlands College Georgia Institute of Technology Georgia Perimeter College

Georgia Southern University Georgia Southwestern College Georgia State University Gordon College
Kennesaw State University Macon State College Medical College of Georgia Middle Georgia College North Georgia College and State
University Savannah State University Skidaway Institute of
Oceanography South Georgia College
Southern Polytechnic State University
University of Georgia Valdosta State University Waycross College State University of West Georgia

Boards of Education
Appling County Atkinson County Atlanta City Bacon County Baker County Baldwin County Banks County Barrow County Bartow County Ben Hill County Berrien County Bibb County Bleckley County Brantley County Bremen City Brooks County Bryan County Buford City Bulloch County Burke County Butts County Calhoun City Calhoun County Camden County Candler County

50

Teachers Retirement System of Georgia

Operating Information

Statistical Section

Participating Employers

Boards of Education continued

Carroll County Carrollton City Cartersville City Catoosa County Charlton County Chatham County Chattahoochee County Chattooga County Cherokee County Chickamauga City Clarke County Clay County Clayton County Clinch County Cobb County Coffee County Colquitt County Columbia County Commerce City Cook County Coweta County Crawford County Crisp County Dade County Dalton City Dawson County Decatur City Decatur County
DeKalb County Dodge County Dooly County Dougherty County Douglas County Dublin City
Early County Echols County Effingham County Elbert County Emanuel County Evans County Fannin County Fayette County Floyd County Forsyth County Franklin County Fulton County Gainesville City
Georgia Military College Gilmer County Glascock County Glynn County Gordon County Grady County Greene County
Griffin-Spalding County Gwinnett County Habersham County Hall County Hancock County Haralson County Harris County

Hart County
Heard County
Henry County
Houston County
Irwin County
Jackson County Jasper County Jeff Davis County Jefferson City Jefferson County Jenkins County Johnson County Jones County Lamar County
Lanier County
Laurens County
Lee County
Liberty County
Lincoln County
Long County
Lowndes County
Lumpkin County
Macon County Madison County Marietta City Marion County McDuffie County McIntosh County Meriwether County Miller County Mitchell County Monroe County Montgomery County Morgan County Murray County Muscogee County Newton County
Oconee County
Oglethorpe County
Paulding County Peach County Pelham City Pickens County Pierce County Pike County Polk School District Pulaski County Putnam County Quitman County
Rabun County
Randolph County
Richmond County
Rockdale County
Rome City
Schley County
Screven County
Seminole County
Social Circle City
Stephens County
Stewart County
Sumter County

Talbot County Taliaferro County Tattnall County Taylor County Telfair County Terrell County Thomas County Thomasville City Thomaston-Upson County Tift County Toombs County Towns County Treutlen County Trion City Troup County Turner County Twiggs County Union County Valdosta City Vidalia City Walker County Walton County Ware County Warren County Washington County Wayne County Webster County Wheeler County White County Whitfield County Wilcox County Wilkes County Wilkinson County Worth County
Public Libraries
Athens Regional Library Barnesville-Lamar County Bartow County Library Bartram Trail Regional Library Brooks County Library Camden County Library Chatsworth-Murray County
Library Chattooga County Library Cherokee Regional Library Chestatee Regional Library Clayton County Regional Library Coastal Plains Regional Library Cobb County Public Library Conyers-Rockdale Library DeKalb County Public Library Desota Trail Regional Library Dougherty County Public Library East Central Georgia Regional
Library Elbert County Public Library Fitzgerald-Ben Hill County
Library

2007 Comprehensive Annual Financial Report

51

Operating Information

Statistical Section

Participating Employers

Public Libraries continued

Flint River Regional Library Forsyth County Public Library Gwinnett County Public Library Hall County Library Hart County Library Hawkes Library Henry County Library Houston County Public Library Jefferson County Library Kinchafoonee Regional Library Lake Blackshear Regional Library Lee County Public Library Lincoln County Library Live Oak Public Library M.E. Roden Memorial Library Mary Vinson Memorial Library Middle Georgia Regional Library Moultrie-Colquitt County Library Mountain Regional Library Newnan-Coweta Public Library Newton County Library Northeast Georgia Regional
Library Northwest Georgia Regional
Library Ocmulgee Regional Library Oconee Regional Library Ohoopee Regional Library Okefenokee Regional Library Peach Public Library Piedmont Regional Library Pine Mountain Regional Library Roddenberry Memorial Library Sara Hightower Regional Library Satilla Regional Library Screven-Jenkins Regional Library Sequoyah Regional Library South Georgia Regional Library Southwest Georgia
Regional Library Statesboro Regional Library Thomas County Public Library Three Rivers Regional Library Troup-Harris-Coweta
Regional Library Uncle Remus Regional Library Warren County Public Library West Georgia Regional Library
Technical Colleges
Albany Technical College Altamaha Technical College Applachian Technical College Athens Technical College Atlanta Technical College Augusta Technical College Central Georgia Technical College Chattahoochee Technical College Columbus Technical College

Coosa Valley Technical College DeKalb Technical College East Central Technical College Flint River Technical College Georgia Aviation & Technical College Griffin Technical College Gwinnett Technical College Heart of Georgia Technical College Lanier Technical College Middle Georgia Technical College Moultrie Technical College North Georgia Technical College North Metro Technical College Northwestern Technical College Ogeechee Technical College Okefenokee Technical College Sandersville Technical College Savannah Technical College South Georgia Technical College Southeastern Technical College Southwest GA Technical College Swainsboro Technical College Valdosta Technical College West Central Technical College West Georgia Technical College
Regional Educational Service Agencies
Central Savannah River Area RESA Chattahoochee Flint RESA Coastal Plains RESA First District RESA Griffin RESA Heart of Georgia RESA Metro RESA Middle Georgia RESA North Georgia RESA Northeast Georgia RESA Northwest Georgia RESA Oconee RESA Okefenokee RESA Pioneer RESA Southwest Georgia RESA West Georgia RESA
Other
Academy of Lithonia Charter Achieve Academy Amana Academy Baconton Community Charter
School Baldwin County Board of Health Board of Regents Brighten Academy Chancellor Beacon Academy Charles Drew Charter School

Charter Conservatory for Liberal
Arts and Technology, Inc.
Cooperative Extension Service DeKalb Academy of Technology DeKalb Path Academy Destiny Academy of Excellence Fulton County DFACS
Fulton Science Academy Charter
School
Georgia Association of Educators Georgia Department of
Administrative Service
Georgia Department of Agriculture
Georgia Department of Audits
Georgia Department of
Community Health
Georgia Department of
Driver Services
Georgia Department of Early Care and Learning
Georgia Department of Economic Development
Georgia Department of Education Georgia Department of Human
Resources
Georgia Department of
Juvenile Justice Georgia Department of Labor
Georgia Department of
Natural Resources
Georgia Department of
Public Safety Georgia Department of Revenue
Georgia Department of Technical
and Adult Education Georgia Student Finance
Commission
Georgia High School Association
Georgia Magnet Charter School Georgia Public Defender Council Georgia Public
Telecommunications
International Community
Charter School
Kidspeace Charter School Kipp South Fulton Academy Kipp Ways Academy Lewis Academy of Excellence Marietta Charter School Neighborhood Charter School
Odyssey Charter School
Office of Planning and Budget Secretary of State
South East Atlanta Charter Schools State Accounting Office T.E.A.C.H. Charter School Teachers Retirement System
of Georgia
Tech High School
University Community Academy
Ware County Health Department

52

Teachers Retirement System of Georgia

Two Northside 75 Atlanta GA 30318 (800)-352-0650 or (404)-352-6500 www.trsga.com