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Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-be400-b-pa1-b2022-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-be400-b-pa1-b2022-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["annual reports"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"Employees' Retirement System of Georgia \nAnnual Comprehensive Financial Report \n \nFiscal Year Ended June 30, 2022 \nA component unit of the State of Georgia \n \nGeorgia's Waterfalls \n \nTallulah Gorge State Park \n2 \n2022 \n \n Tallulah Gorge \nTallulah Gorge State Park: Various trails with different levels of difficulty Tallulah Gorge is in Rabun County in Northeast Georgia, at the Georgia and North Carolina border. Five spectacular waterfalls cascade through Tallulah Gorge: L'Eau d'Or, Tempesta, Hurricane, Oceana, and Bridal Veil (Sliding Rock). All waterfalls can be viewed from the overlooks along the rim of the gorge, with the exception of Bridal Veil. Two miles long and nearly 1,000 feet deep, Tallulah Gorge is one of the most dramatic canyons in the eastern United States. There are more than 20 miles of trails ranging from easy to heart-pumping. The trails lead to rim overlooks, waterfalls, Tallulah Lake, and a suspension bridge swaying 80 feet above the views of the river and waterfall below. \nLearn more at exploregeorgia.org \n \n Our Mission \nOur mission is to be the guardian of the State of Georgia's retirement plans and promote a dignified retirement for the members, retirees, and their beneficiaries. Our vision is to demonstrate an unwavering commitment to delivering accurate and timely retirement benefits utilizing a knowledgeable staff and state-of-the-art technology to best serve the retirement needs of current and future members. \nOur Values \nOur Core Values are: Integrity Customer Service Operational Excellence Continuous Improvement and Innovation \n \n Employees' Retirement System of Georgia \nAnnual Comprehensive Financial Report \n \nFiscal Year Ended June 30, 2022 \nA component unit of the State of Georgia \n \nServing Those Who Serve Georgia \n \nCascade Falls \nJames A. Potvin Executive Director \n \n Cascade Falls \nPine Mountain Trail to Cascade Falls: Moderate, 4.5 miles Cascade Falls is located in Harris County, just northeast of Columbus. The Pine Mountain trail wanders through a rocky forest in the Franklin D. Roosevelt State Park. The trail features a tunnel of mountain laurel and joins a creek after 1.25 miles. The trail then passes several small waterfalls and ends at Cascade Falls. The best time to hike the Pine Mountain trail is from April through October. Four-legged companions are welcome on the trail, but must be leashed at all times. \nLearn more at atlantatrails.com \n \n Table of Contents \n \nIntroductory Section \n \nBoards of Trustees \n \n4 \n \nLetter of Transmittal \n \n5 \n \nCertificate of Achievement for Excellence in \n \n9 \n \nFinancial Reporting \n \nPPCC Recognition Award for Funding \n \n10 \n \nAdministrative Staff and Organization \n \n11 \n \nOrganizational Chart \n \n12 \n \nFinancial Section \n \nIndependent Auditors' Report \n \n15 \n \nManagement's Discussion and Analysis (Unaudited) \n \n18 \n \nBasic Financial Statements: \n \nCombining Statement of Fiduciary Net Position as of \n \n26 \n \nJune 30, 2022 \n \nDefined Benefit Plans-Combining Statement of \n \n27 \n \nFiduciary Net Position as of June 30, 2022 \n \nCombining Statement of Changes in Fiduciary Net \n \n28 \n \nPosition for the Year Ended June 30, 2022 \n \nDefined Benefit Plans-Combining Statement of Changes 29 in Fiduciary Net Position for the Year Ended June 30, 2022 \n \nStatement of Net Position-State Employees' Assurance 30 Department Active Members Fund \n \nStatement of Revenues, Expenses, and Changes in Net 31 Position-State Employees' Assurance Department Active Members Fund \n \nStatement of Cash Flows-State Employees' Assurance 32 Department Active Members Fund \n \nNotes to Financial Statements \n \n33 \n \nRequired Supplementary Information (Unaudited): \n \nDefined Benefit Plans: \n \nSchedule of Employers' and Nonemployer \n \n67 \n \nContributions \n \nSchedules of Employers' and Nonemployer Net \n \n69 \n \nPension/OPEB Liability (Asset) and Related \n \nRatios \n \nSchedules of Changes in Employers' and \n \n71 \n \nNonemployer Net Pension/OPEB Liability (Asset) \n \nSchedule of Investment Returns \n \n77 \n \nSchedules of the System's Proportionate Share \n \n78 \n \nof the Net OPEB Liability (Asset) \n \nSchedules of the System's Contributions to OPEB Plans 79 \n \nNotes to Required Supplementary Information (Unaudited) 80 \n \nAdditional Information: \n \nSchedule of Administrative Expenses - \n \n86 \n \nContributions and Expenses \n \nSchedule of Investment Expenses \n \n87 \n \nInvestment Section \n \nInvestment Overview \n \n90 \n \nPooled Investment Fund/Rates of Return \n \n91 \n \nAsset Allocation at Fair Value/Investment Summary \n \n92 \n \nSchedule of Fees and Commissions \n \n93 \n \nTwenty Largest Equity Holdings \n \n94 \n \nTop 10 Fixed Income Holdings \n \n95 \n \nActuarial Section \n \nActuary's Certification Letters \n \n98 \n \nSummary of Plan Provisions \n \n110 \n \nSummary of Actuarial Assumptions \n \n112 \n \nActive Members \n \n124 \n \nMember and Employer Contribution Rates \n \n126 \n \nDefined Benefit Plans-Schedules of Funding Progress \n \n128 \n \nSchedule of Retirees Added to and Removed from Rolls \n \n130 \n \nAnalysis of Change in Unfunded Accrued Liability (UAL) \n \n132 \n \nSolvency Test Results \n \n135 \n \nStatistical Section \n \nIntroduction \n \n139 \n \nAdditions by Source-Contribution/Investment Income \n \n140 \n \nDeductions by Type \n \n143 \n \nChanges in Fiduciary Net Position \n \n147 \n \nNumber of Retirees \n \n149 \n \nAverage Monthly Payments to Retirees \n \n150 \n \nAnnual Benefit \n \n151 \n \nWithdrawal Statistics \n \n152 \n \nAverage Monthly Benefit Payment for New Retirees \n \n153 \n \nRetired Members by Retirement Type \n \n158 \n \nRetired Members by Optional Form of Benefit \n \n160 \n \nPrincipal Participating Employers \n \n164 \n \nSchedule of Revenue and Expenses-State \n \n166 \n \nEmployees' Assurance Department Active \n \nMembers Fund \n \nSchedule of Membership-State Employees' \n \n167 \n \nAssurance Department Active Members Fund \n \nStatistical Data at June 30, 2022 \n \n168 \n \n Introductory Section \nGeorgia's Waterfalls \nDeSoto Falls \n \n DeSoto Falls \nDeSoto Falls Trail: Moderate, 2 miles DeSoto Falls is a 30-minute drive north from the charming town of Dahlonega. The 2-mile out-and-back DeSoto Falls Trail packs a lot of punch in a short distance, crossing a beautiful rhododendron and mossy boulder-filled creek. There are two waterfalls to choose from, each trail through a shady forest. This hike's relatively short, kid-friendly distance and moderate elevation change make it one of North Georgia's most popular waterfall hikes. \nLearn more at atlantatrails.com \n \n Introductory Section \nBoards of Trustees \nas of September 30, 2022 Employees' Retirement System, Legislative Retirement System, \nGeorgia Defined Contribution Plan, and Georgia Military Pension Fund \n \nEli P. Niepoky Chair \n \nHomer Bryson Vice-Chair \n \nRebecca Sullivan \n \nSteve McCoy \n \nGreg S. Griffin \n \nPublic School Employee Retirement System* \n \nFrank F. Thach, Jr. \n \nRhonda Wilson \n \nState Employees' Assurance Department** \n \nMichael Lowe \n \nRichard Taylor \n \nMark Butler \n \nGeorgia Judicial Retirement System* \n \nVacant \n \nEllen S. Golden \n \nRon Mullins \n \nAnn Harris \n \n*The PSERS and GJRS boards are comprised of the members of the ERS board and additional members shown under each plan. \n**SEAD -- ERS Board Members Eli P. Niepoky, Greg S. Griffin, Steve McCoy, Rebecca Sullivan, and Rhonda Wilson serve in addition to the members shown above. \n \n4 \n \n Introductory Section \n \nLetter of Transmittal \n \nTwo Northside 75 Atlanta, GA 30318 \n \nSeptember 30, 2022 \n \nI am pleased to present the Annual Comprehensive Financial Report (ACFR) of the retirement systems and programs administered by the Employees' Retirement System of Georgia (the System) for the fiscal year ended June 30, 2022. The management of the System is responsible for the accuracy, completeness, and fairness of the presentation, including all disclosures. It is to the best of our knowledge and belief that the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the System. \nProfile of the System \n \nstate. There were 74,098 participants in the 401(k) plan with a total investment balance of $1.5 billion. The 457 plan had 11,718 participants with a total investment balance of $661.2 million. There are 461 participating employers from around the state in the 457 and 401(k) plans. \nLegislation \nThe Georgia General Assembly, which adjourned April 4, 2022, passed several bills directly affecting the Employees' Retirement System (ERS) and other defined benefit and defined contribution programs which it administers. \n \nThe System was established in 1949 by an Act of the Georgia General Assembly to provide benefits for all State employees. Plans administered by the System include the Employees' Retirement System (ERS), the Legislative Retirement System (LRS) established in 1979, the Public School Employees Retirement System (PSERS) established in 1969, the Georgia Defined Contribution Plan (GDCP) established in 1992, the Georgia Judicial Retirement System (GJRS) established in 1998, and the Georgia Military Pension Fund (GMPF) established in 2002. In addition, the System is responsible for administering a Group Term Life Insurance Plan (SEAD), the 457 Plan established in 1974, and the 401(k) Plan established in 1994. A summary of each plan can be found on pages 33 through 43 of this report. The investments of all plans are pooled together into one fund except for the three defined contribution (DC) plans, which are maintained individually. \nThe ERS, LRS, GDCP, GMPF, 401(k), and 457 plans are governed by a 7-member Board of Trustees (Board) made up of 3 ex-officio members, 1 governor-appointed member, and 3 Board-appointed members. PSERS has the same Board as ERS with 2 additional governor-appointed members. GJRS has the same Board as ERS with 3 additional governor-appointed members. \nAs of June 30, 2022, the System's defined benefit (DB) plans served a total of 98,934 active members and 76,608 retirees/beneficiaries from 678 employers around the \n \nAct 790 (SB 343) makes two major changes to the ERS. The first amends forfeited leave provisions so that for retirements prior to July 1, 2022, the last reporting employer before the member's retirement will continue to be responsible for contributing the financial cost associated with such leave. Non-legislative changes made and adopted to the ERS Funding Policy by the Board of Trustees will provide that for all retirements after July 1, 2022, such cost and liabilities will be factored into the actuarial assumptions for ERS and paid as part of the Actuarially Determined Employer Contribution (ADEC). \nIn addition, SB 343 updates the current 401(k) employer matching structure for all ERS members who first or again became members on or after July 1, 2009. Currently, such members receive a monthly three percent (3%) employer contribution match for contributing five percent (5%), whereas the legislation increases the employer match to a one-for-one basis up to a maximum of five percent (5%) of the employee's pay. This bill also increases the employer match one-half of one percent (0.5%) for each year of Creditable Service after five (5) obtained by eligible members up to a maximum of nine percent (9%) employer contribution for those members with more than 13 years of Creditable Service and who contribute at least five percent (5%) to their 401(k). This is a nonfiscal retirement bill having no financial impact on the system, and became effective July 1, 2022. \n \n(continued) 5 \n \n Introductory Section \n \nThe Legislative Retirement System (LRS) also saw major legislative changes with the passing and signing of Act 747 (HB 824). This legislation increases the benefit multiplier from $36 to $50, but only for those LRS members who were contributing on or who first or again become LRS members after January 1, 2022. It also amends the employee contribution structure on and after July 1, 2022 so that instead of paying eight and one-half of a percent (8.5%) of their monthly salary, members will instead pay $165 each month. In addition to the general benefit increase and contribution changes, this legislation provides for additional benefits and increased contributions for service as the Speaker of the Georgia House of Representatives. Individuals with \"presiding creditable service\" over the House of Representatives will be required to contribute an additional $660 on top of the $165 for each month of applicable service, and will in turn receive an increased benefit of $250 ($200 plus regular $50) for each year of presiding creditable service. \nThe Fiscal Year 2023 Budget (Act 865, HB 911) included funds to increase the benefit multiplier for Public School Employees Retirement System (PSERS) retirees and beneficiaries from $15.75 to $16.00. Such increase became effective July 1, 2022. \nSummary of Financial Information \nThe management of the System is charged with the responsibility of maintaining a sound system of internal accounting controls. The objectives of such a system are to provide management with reasonable assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorizations, and that they are recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. The concept of reasonable assurance recognizes that first, the cost of a control should not exceed the benefits likely to be derived, and second, the evaluation of the cost and benefits requires estimates and judgments by management. \nEven though there are inherent limitations in any system of internal control, the management of the System makes every effort to ensure that through systematic reporting and internal reviews, error or fraud would be quickly detected and corrected. \n \nFor fiscal year 2022, the pooled investment fund generated a time-weighted rate of return of (11.71)%. The fund continues to invest in a mix of high-quality bonds and stocks which allows the System to participate in rising markets while controlling the downside risks. This has proven to be a successful strategy for other markets and for the System. For further information on investments of the pooled fund, please refer to the Investment Section on pages 88 through 95 of this report. \n \nThe objective of the System's pension trust funds is to meet long-term benefit promises through contributions that remain approximately level as a percent of member payroll over time while maintaining an actuarially sound system. Historical information relating to the progress in meeting this objective is presented on pages 128 and 129. The latest actuarial valuations as of June 30, 2021 showed the funded ratio of four of the five of the defined benefit plans increasing. The following table shows the change in funding percentage for each of the pension systems: \n \nERS PSERS LRS GJRS GMPF \n \nFY2020 73.8 % 83.1 % \n135.7 % 106.4 % \n57.8 % \n \nFY2021 71.6 % 86.3 % \n143.5 % 109.0 % \n62.9 % \n \nFurther information regarding the funding condition of the pension plans can be found in the Actuarial Section of this report, beginning on page 96. \n \nExcellence in Financial Reporting \nFor the eleventh consecutive year, the Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Employees' Retirement System of Georgia for its annual comprehensive financial report for the fiscal year ended June 30, 2021. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. \n \nPlease refer to the Management's Discussion and Analysis starting on page 18 of this report for an overview of the financial status of the System, including a summary of the System's Fiduciary Net Position, Changes in Fiduciary Net Position, and Asset Allocations. \n \nA Certificate of Achievement is valid for a period of one year only. We believe our current annual comprehensive financial report continues to meet the Certificate of Achievement Program's requirements, and we are \n \n(continued) 6 \n \n Introductory Section \n \nsubmitting it to the GFOA to determine its eligibility for another certificate. \nInitiatives \nPandemic Impact We attempted to begin our return to the office in the summer of 2021; however, with subsequent spikes in the number of COVID cases we did not get beyond 1 day per week. This was not effective in producing the desired result (namely, more face to face interaction among our staff) because there were too few people in the office on any given day. So we resumed 100% teleworking over the winter. \n \nCommunications Visual communication goals have been highly prioritized, with six Retirement Minute plan videos being produced, each featuring unique characters. These videos provide \"snack-sized\" bites of education to highlight the important plan points. The overarching goal is for every ERSGA plan to have a unique Retirement Minute overview video. Subtitled versions are also available. Virtual presentations were provided to state employees on financial literacy and comprehending plan benefits, with an emphasis on the importance of maximizing the full employer match. We also conducted numerous training sessions throughout the year for our employers regarding ongoing processing and implementation of new processes and legislation. \n \nBeginning in mid-March, we returned to the office on a two days per week schedule. We anticipate that this schedule, with some possible fine-tuning, will be our permanent arrangement going forward. Pre-pandemic, we required three office days per week. Overall we feel better about our employees' ability to handle a disaster situation, should one arise in the future that requires us to be out of the office on short notice. And while some of our members are looking forward to seeing us in person again, we have done a good job of improving our ability to meet most of their needs remotely if necessary. \nTechnology The IT team continues to be heavily focused on cybersecurity and recently completed a third party security maturity assessment. ERS is developing a security roadmap and project list for moving our security posture forward. One of the major initiatives to come from this exercise is to contract with LexisNexis Risk Solutions for improved identity and authentication services for onboarding portal users. Other initiatives like physical security review, Multi-Factor, and single sign-on projects or technology reviews are on the roadmap. \nERS is also in the final stages of a major upgrade to our on-premises SharePoint environment. This project involved significant infrastructure buildout and end user training on the new platform. Other significant infrastructure changes include upgraded firewalls and deployment of new firewalls at both our primary and Disaster Recovery (DR) facilities. \nThe IT group is also leading an effort to refresh our Business Impact Analysis (BIA), Business Continuity Plan (BCP), and Disaster Recovery Plan. Sessions to document and capture major functional business processes are underway and will inform the BIA, BCP, and DR Plan. \n \nOther Initiatives Significant legislative implementations included receiving employer contributions for all rehired retirees, new functionality to allow us to receive periodic payments for service purchases, and functionality related to our Supplemental Lifetime Guaranteed Income provision. \nPartnerships with fellow State agencies included a video interview featuring the Department of Administrative Services (DOAS) Commissioner and the ERSGA Executive Director discussing the new ERSGA legislative updates to help Employers understand the changes. We also began a comprehensive redesign and update of our secure Employer Portal on our web site. \nNational Retirement Savings Month (NRSM) took place throughout October. This year's month-long efforts included highly targeted email communications, the promotion of the new plan videos, and a fun, savingthemed interactive crossword puzzle on our website. \nOur Information Technology Division took the lead on conducting Business Impact Analysis interviews with the other divisions as we prepare to update our business continuity documentation. They also contracted with an outside partner to conduct an independent overall security posture assessment. This project provided ERSGA with an excellent position from which to begin work on our multi-year security roadmap. \nOther Information \nIndependent Audit The Board of Trustees requires an annual audit of the financial statements of the System by independent, certified public accountants. The accounting firm of KPMG LLP was selected by the Board. The independent auditors' \n \n(continued) 7 \n \n Introductory Section \nreport on the fiduciary activities and the related proprietary activity is included in the Financial Section of this report. Acknowledgments This report reflects the combined effort of our staff under the Board's leadership. Copies of this report, along with other valuable plan information, can be downloaded from the System's website. I would like to express my sincere thanks to the Boards of Trustees for their leadership and support. Many thanks are also extended to the offices of the Governor, Lieutenant Governor, members of the House and Senate Retirement Committees and their staff, members of the House and Senate, and the department officials whose support and assistance have helped ERSGA accomplish its mission over the years. Respectfully submitted, \nJames A. Potvin, Executive Director Employees' Retirement System of Georgia \n8 \n \n Introductory Section \n9 \n \n Introductory Section \n10 \n \n Introductory Section \nAdministrative Staff and Organization \n \nJames A. Potvin Executive Director \n \nAngie Surface Deputy Director \n \nCharles W. Cary, Jr. CIO - Investment Services \n \nEddy A. Hicks Controller \n \nChris Hackett \nDirector Information Technology, CIO \n \nNicole McGlathery \nDirector Human Resources \n \nSusan Anderson Carolyn Kaplan \n \nDirector Member \n \nDirector \n \nServices, COO Financial Mgmt \n \nKelly Moody \nDirector Legislative \nAffairs \n \nDanielle Templeton \n \nFlavia Peynado \n \nDirector \n \nDirector Quality \n \nCommunications \n \nAssurance \n \nConsulting Services \nCavanaugh Macdonald Consulting, LLC - Actuary KPMG LLP - Auditor Alight Solutions - Defined Contribution \nConsultant and Administrator \nInvestment Advisors* \nAlbritton Capital Management Barrow, Hanley, Mewhinney \u0026 Strauss Cooke \u0026 Bieler Fisher Investments Mondrian Investment Partners Limited Sands Capital Management WCM Investment Management \n \nMedical Advisors \nHarold E. Sours, M.D., Atlanta, GA G. Lee Cross, M.D., Atlanta, GA Pedro F. Garcia, M.D., Atlanta, GA H. Rudolph Warren, M.D., Dunwoody, GA Quinton Pirkle, M.D., Atlanta, GA Joseph S. Wilkes, M.D., Sandy Springs, GA Howard A. McMahan, M.D., Marietta, GA Joseph W. Stubbs, M.D., Albany, GA \n \n*See page 93 in the Investment Section for a summary of fees paid to investment advisors \n11 \n \n Introductory Section \nOrganizational Chart \n12 \n \n Financial Section \nGeorgia's Waterfalls \nAnna Ruby Falls \n \n Anna Ruby Falls \nAnna Ruby Falls Trail: 0.9 miles, easy Anna Ruby Falls is a short distance from the festive town of Helen, Georgia. Anna Ruby Falls is a pair of breathtaking waterfalls, cascading in tandem through a scenic slice of North Georgia forest. The twin waterfalls spill from a towering cliff in wispy white tendrils before splashing and pooling over mossy boulders. It's a great North Georgia outdoor destination in any season. The hike is a relatively easy one, and though the outbound trek is mostly uphill, the trail is paved and just under a half mile. The trail is kid-friendly, stroller-friendly, and dog-friendly. While the twin waterfalls are clearly the main attraction, the trail itself is a beautiful one. The trail climbs to the tumbling waterfall alongside a waterfall-filled creek, catching views of the spilling and splashing creek through the forest. With abundant natural beauty, a rare double waterfall, and relatively easy access, this is one of North Georgia's most popular trails, and well worth a visit. \nLearn more at atlantatrails.com \n \n Financial Section \n \nKPMG LLP Suite 2000 303 Peachtree Street, NE Atlanta, GA 30308-3210 \n \nIndependent Auditors' Report \n \nThe Board of Trustees Employees' Retirement System of Georgia: \n \nReport on the Audit of the Financial Statements \n \nOpinions We have audited the financial statements of the fiduciary activities and the business-type activities of the Employees' Retirement System of Georgia (the System), a component unit of the State of Georgia, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the System's basic financial statements as listed in the table of contents. \nIn our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the fiduciary activities and business-type activities of the System, as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with U.S. generally accepted accounting principles. \nBasis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the System and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nResponsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with U.S. generally accepted accounting principles, and for the \n \ndesign, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \nIn preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the System's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. \nAuditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. \nIn performing an audit in accordance with GAAS and Government Auditing Standards, we: \n Exercise professional judgment and maintain professional skepticism throughout the audit. \n \n(continued) 15 \n \n Financial Section \n \n Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. \n Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the System's internal control. Accordingly, no such opinion is expressed. \n Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. \n Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the System's ability to continue as a going concern for a reasonable period of time. \nWe are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. \nRequired Supplementary Information U.S. generally accepted accounting principles require that the management's discussion and analysis on pages 18-25 and the schedules of employers' and nonemployer contributions  defined benefit plans, schedules of employers' and nonemployer net pension/OPEB liability (asset) and related ratios  defined benefit plans, schedules of changes in employers' and nonemployer net pension/OPEB liability(asset)  defined benefit plans, schedule of investment returns, schedules of the System's proportionate share of the net OPEB liability(asset), the schedules of the System's contributions to OPEB plans, and the notes to required supplementary information on pages 67-85 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental \n \nAccounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \nSupplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the System's basic financial statements. The schedule of administrative expenses  contributions and expenses and schedule of investment expenses are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. \nOther Information Management is responsible for the other information included in the annual comprehensive financial report. The other information comprises the introductory, investment, actuarial, and statistical sections but does not include the basic financial statements and our auditors' report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. \n \n16 \n \n Financial Section \n \nIn connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. \nOther Reporting Required by Government Auditing Standards \n \nour consideration of the System's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the System's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the System's internal control over financial reporting and compliance. \n \nIn accordance with Government Auditing Standards, we have also issued our report dated September 30, 2022 on \n \nAtlanta, Georgia September 30, 2022 \n \n17 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \nJune 30, 2022 \nThis section provides a discussion and analysis of the financial performance of the Employees' Retirement System of Georgia (the System) for the year ended June 30, 2022. The discussion and analysis of the System's financial performance is within the context of the accompanying basic financial statements, notes to the financial statements, required supplementary schedules, and additional information following this section. \nThe System is responsible for administering a cost-sharing, multiple-employer defined benefit pension plan for various employer agencies of Georgia, along with six other defined benefit pension plans, a defined benefit OPEB plan, three defined contribution plans, and a custodial fund, all of which comprise the fiduciary funds. The System is also responsible for administering an enterprise fund, which comprises the proprietary fund. \nThe defined benefit pension plans include:  Employees' Retirement System (ERS)  Public School Employees Retirement System (PSERS)  Legislative Retirement System (LRS)  Georgia Judicial Retirement System (GJRS)  Georgia Military Pension Fund (GMPF)  Superior Court Judges Retirement Fund (SCJRF)  District Attorneys Retirement Fund (DARF) \nThe defined benefit OPEB plan consists of the State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEAD-OPEB). \nThe defined contribution retirement plans include:  Georgia Defined Contribution Plan (GDCP)  State of Georgia Employees' Qualified Trust Deferred Compensation Plan (401(k) Plan)  State of Georgia Employees' Deferred Compensation Plan (457 Plan) \nThe custodial fund consists of the Survivors Benefit Fund (SBF). \nThe enterprise fund consists of the State Employees' Assurance Department Active Members Fund (SEAD-Active). \nOverview of Financial Statements \nA fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The System administers two categories of funds: fiduciary funds and a proprietary fund. Information related to the financial statements of the funds is presented in the notes to the financial statements. \nFiduciary funds are used to account for resources held for the benefit of parties outside of the System. The primary focus of the System's fiduciary funds is the accumulation of resources for and the payment of pension and OPEB benefits. The System maintains four types of fiduciary funds: (1) defined benefit pension trust funds which are used to report resources held in trust for pensions for retirees and beneficiaries covered by ERS, PSERS, LRS, GJRS, GMPF, SCJRF, and DARF (2) a defined benefit OPEB trust fund, which is used to report resources held in trust for other postemployment benefits of retirees and beneficiaries covered by SEAD-OPEB (3) defined contribution pension trust funds, which are used to accumulate contributions and earnings in the accounts of participants covered by GDCP, the 401(k) Plan, and the 457 Plan, and (4) a custodial fund, which is used to report resources held by the SBF in a custodial capacity for other plans. \nProprietary funds, which include enterprise and internal services funds, are used to account for the System's activities that are similar to private-sector businesses. The System maintains one proprietary fund, which is an enterprise fund, \n(continued) 18 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \nSEAD-Active. The primary focus of the System's enterprise fund is the accumulation of resources for, and payment of, group term life insurance benefits for active members of ERS, LRS, and GJRS covered by SEAD-Active. \nThe basic financial statements comprise statements for both fiduciary and proprietary funds. The fiduciary fund financial statements include (1) Combining Statement of Fiduciary Net Position (2) Defined Benefit Plans  Combining Statement of Fiduciary Net Position (3) Combining Statement of Changes in Fiduciary Net Position, and (4) Defined Benefit Plans  Combining Statement of Changes in Fiduciary Net Position. The proprietary fund financial statements include (1) Statement of Net Position (2) Statement of Revenues, Expenses, and Changes in Net Position and (3) Statement of Cash Flows. \nIn addition, the System presents six types of required supplementary schedules, which provide historical trend information about the plan. Four of the schedules are presented from the perspective of the System reporting as the plan and include (1) Schedules of Employers' and Nonemployer Contributions (2) Schedules of Employers' and Nonemployer Net Pension/OPEB Liability (Asset) and Related Ratios (3) Schedules of Changes in Employers' and Nonemployer Net Pension/OPEB Liability (Asset) and (4) Schedule of Investment Returns. Two of the schedules are presented from the perspective of the System reporting as the employer for its employees who participate in the SEAD-OPEB and the Georgia State Employees Postemployment Benefit Fund (State OPEB Fund) and include the (5) Schedules of the System's Proportionate Share of the Net OPEB Liability (Asset) and (6) Schedules of the System's Contributions to OPEB Plans. The System also includes in this report additional information to supplement the financial statements. \nThe System prepares its financial statements on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board (GASB). These statements provide information about the System's overall financial status. \nFinancial Highlights \nThe highlights of the fiduciary funds of the System are as follows: \n The net position of the fiduciary funds decreased by $3.5 billion, or 15.4%, from $22.8 billion at June 30, 2021 to $19.3 billion at June 30, 2022. The decrease in net position was primarily due to negative equity and bond market returns. \n For the year ended June 30, 2022, the total additions to net position resulted in a decrease of $1.6 billion, compared to $6.1 billion increase for the year ended June 30, 2021. For the year ended June 30, 2022, the additions consisted of employer, nonemployer contributing entities (nonemployer), and member contributions totaling $950.5 million, insurance premiums of $2.6 million, net investment loss of $2.6 billion, and participant fees of $629.0 thousand. \n Net investment loss of $2.6 billion in 2022 (comprising interest and dividend income, the change in fair value of investments, and other, reduced by investment expenses) represents a decrease of $7.8 billion, or 149.6%, compared to the net investment income of $5.2 billion for the year ended June 30, 2021. The change in net investment income was primarily due to equity and bond market losses in 2022 compared to equity market gains in 2021. \n The total deductions from net position increased by $82.0 million to $1.886 billion for the year ended June 30, 2022 compared to $1.804 billion for the year ended June 30, 2021. For the year ended June 30, 2022, the increase in deductions primarily consisted of an increase in benefit payments. \nThe highlights of the proprietary fund of the System are as follows: \n The net position of the proprietary fund decreased by $50.9 million to $357.5 million at June 30, 2022 compared to $408.3 million at June 30, 2021. The decrease in net position was primarily due to negative equity and bond market returns. \n(continued) 19 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \n For the year ended June 30, 2022, total operating loss was $2.9 million compared to $4.4 million for the year ended June 30, 2021. The decrease relates primarily to an decrease in the number of active members who received death benefits during the year. \n Net investment income allocated from the pooled investment fund of $(47.9) million in 2022 represents a decrease of $141.3 million, or 151.3%, compared to net investment income allocated from the pooled investment fund of $93.4 million for the year ended June 30, 2021. The change in investment income allocated from the pooled investment fund was primarily due to equity and bond market losses in 2022 compared to equity market gains in 2021. \nDescription of the Financial Statements \nFiduciary Funds \nThe Combining Statement of Fiduciary Net Position is the statement of financial position presenting information that includes the fiduciary funds' assets and liabilities, with the balance representing the Net Position Restricted for Pensions and OPEB and SBF. The investments of the funds in this statement are presented at fair value. This statement is presented on page 26. \nThe Combining Statement of Changes in Fiduciary Net Position reports how the fiduciary funds' net position changed during the fiscal year. The additions include contributions to the retirement plans from employers, nonemployer, and members; group term life insurance premiums; participant fees; and net investment income, which includes interest and dividends and the net increase in the fair value of investments, net of investment expenses. The deductions include benefit payments, life insurance death benefit payments, refunds of member contributions and interest, and administrative expenses. This statement is presented on page 28. \nThe Defined Benefit Plans' Combining Statement of Fiduciary Net Position and the Combining Statement of Changes in Fiduciary Net Position present the financial position and changes in financial position for each of the defined benefit plans administered by the System. These statements are on pages 27 and 29, respectively. \nProprietary Fund \nThe Statement of Net Position is the statement of financial position presenting information that includes the assets and liabilities, with the balance representing the net position. This statement is presented on page 30. \nThe Statement of Revenues, Expenses, and Changes in Net Position distinguishes operating revenues and expenses from nonoperating items. Principal operating revenues result from insurance premiums from members, while operating expenses result from death benefit payments and administrative expenses. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. This statement is presented on page 31. \nThe Statement of Cash Flows provides information about cash receipts and cash payments during the year. When used in conjunction with related disclosures and information in the other financial statements, the statement provides relevant information about the plan's ability to generate future net cash flows, the plan's ability to meet its obligations as they come due, and presents the reasons for differences between operating income and associated cash receipts and payments. This statement is presented on page 32. \nNotes to Financial Statements are presented to provide the information necessary for a full understanding of the financial statements. The notes to the financial statements begin on page 33. \n(continued) 20 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \nRequired Supplementary Information begins on page 67. The required schedules are discussed as follows:  The Schedule of Employers' and Nonemployer Contributions presents historical trend information for the last 10 consecutive fiscal years about the required contributions and the percent of required contributions actually contributed.  The Schedule of Employers' and Nonemployer Net Pension/OPEB Liability and Related Ratios presents the components of the net pension/OPEB liability as of the fiscal year end and the fiduciary net position as a percentage of the total pension/OPEB liability as of that date. This trend information will be accumulated to display a 10-year presentation.  The Schedule of Changes in Employers' and Nonemployer Net Pension/OPEB Liability presents total net pension/OPEB liability and is measured as total pension/OPEB liability less the amount of the fiduciary net position. This trend information will be accumulated to display a 10-year presentation.  The Schedule of Investment Returns presents historical trend information about the annual money-weighted rate of return on plan investments, net of plan investment expense. This trend information will be accumulated to display a 10-year presentation.  The Schedule of the System's Proportionate Share of the Net OPEB Liability presents historical trend information about the System's proportionate share of the net OPEB liability (asset) for its employees who participate in the SEAD-OPEB plan and the State OPEB Fund. This trend information will be accumulated to display a 10-year presentation.  The Schedule of the System's Contributions to OPEB Plans presents historical trend information about the System's contributions for its employees who participate in the SEAD-OPEB plan and the State OPEB Fund. This trend information will be accumulated to display a 10-year presentation. \nThree of the required schedules above, the Schedules of Employers' and Nonemployer Contributions, the Schedules of Employers' and Nonemployer Net Pension/OPEB Liability and Related Ratios, and the Schedules of Changes in Employers' and Nonemployer Net Pension/OPEB Liability are applicable to five of the defined benefit pension plans (ERS, PSERS, LRS, GJRS, and GMPF) and the defined benefit OPEB plan (SEAD-OPEB). \nNotes to Required Supplementary Information are presented to provide the information necessary for a full understanding of the supplementary schedules. The notes to required supplementary information begin on page 80. \nAdditional information is presented, beginning on page 86, and includes two schedules. The first schedule is the Schedule of Administrative Expenses  Contributions and Expenses and presents the expenses incurred in the administration of the plans and funds, and the contributions from each plan and fund to provide for these expenses. The second schedule is the Schedule of Investment Expenses and presents the expenses incurred in the management of the System's investments. \n(continued) 21 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \n \nFinancial Analysis of the System \n \nA summary of the System's net position of the fiduciary funds at June 30, 2022 is as follows (dollars in thousands): \n \nNet position \n \n2022 \n \n2021 \n \nAmount change \n \nPercentage change \n \nAssets: \n \nCash, cash equivalents, and receivables \n \n$ \n \n297,857 \n \n491,693 \n \n(193,836) \n \n(39.4)% \n \nInvestments \n \n19,412,898 22,790,665 (3,377,767) \n \n(14.8) \n \nCapital assets, net \n \n6,313 \n \n6,388 \n \n(75) \n \n(1.2) \n \nNet OPEB asset \n \n1,426 \n \n602 \n \n824 \n \n136.9 \n \nTotal assets \n \n19,718,494 23,289,348 (3,570,854) \n \n(15.3) \n \nDeferred outflows of resources \n \n541 \n \n764 \n \n(223) \n \n(29.2) \n \nLiabilities: \n \nDue to brokers, accounts payable, and insurance premiums payable \n \nDue to other funds/plans and participating systems \n \nNet OPEB liability \n \nTotal liabilities \n \nDeferred inflows of resources \n \nNet position \n \n$ \n \n36,253 357,357 \n545 394,155 \n2,709 19,322,171 \n \n31,704 408,125 \n2,156 441,985 \n2,227 22,845,900 \n \n4,549 (50,768) \n(1,611) (47,830) \n482 (3,523,729) \n \n14.3 (12.4) (74.7) (10.8) 21.6 (15.4)% \n \nA summary of the System's net position of the proprietary fund at June 30, 2022 is as follows (dollars in thousands): \n \nNet position \n \n2022 \n \n2021 \n \nAmount change \n \nPercentage change \n \nAssets: Cash, cash equivalents, and receivables Investments Total assets \n \n$ \n \n143 \n \n357,357 \n \n357,500 \n \n244 408,125 408,369 \n \n(101) (50,768) (50,869) \n \n(41.4)% (12.4) (12.5) \n \nLiabilities: Accounts payable and other Net position \n \n48 \n \n$ \n \n357,452 \n \n46 408,323 \n \n2 (50,871) \n \n4.3 (12.5)% \n \n(continued) 22 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \n \nThe following table presents the investment allocation at June 30, 2022, and 2021: \nAsset allocation at June 30 (in percentages): Equities: \nDomestic International Private equity Domestic obligations: U.S. treasuries Corporate and other bonds International obligations: Corporates Commingled funds \n \n2022 \n46.3 % 13.3 \n3.3 \n19.7 5.8 \n0.5 11.1 \n \n2021 \n47.5 % 15.8 \n2.3 \n17.6 5.3 \n0.9 10.6 \n \nAsset allocation at June 30 (in thousands): Equities: \nDomestic International Private equity Domestic obligations: U.S. treasuries Corporate and other bonds International obligations: Corporates Mutual funds Commingled funds \n \n$ 8,991,853 $ 10,817,734 \n \n2,577,425 \n \n3,594,250 \n \n631,937 \n \n525,508 \n \n3,824,614 1,125,699 \n \n4,008,672 1,205,160 \n \n93,118 7,338 \n2,160,914 \n \n209,045 8,969 \n2,421,327 \n \n$ 19,412,898 $ 22,790,665 \n \nThe total investment portfolio decreased by $3.4 billion, or 14.8%, from 2021, which is due to negative equity and bond market returns. \nInvestment performance is calculated using a time-weighted rate of return using the Daily Valuation Method. The timeweighted rate of return for the fiscal year ended June 30, 2022, was (11.7)% with a (15.3)% return for equities, a 32.8% return for private equity, and a (7.4)% return for fixed income. The five-year annualized rate of return at June 30, 2022, was 7.1% with a 8.7% return for equities, a 25.5% return for private equity, and a 1.2% return for fixed income. \nA money-weighted return is weighted by the amount of dollars in the fund at the beginning and end of the performance period. A money-weighted return is highly influenced by the timing of cash flows into and out of the fund and is a better measure of an entity or person who controls the cash flows into or out of the fund. The nondiscretionary cash flows for the plan, primarily contributions and benefit payments, have a considerable impact on the money-weighted returns of the portfolio. The money-weighted rate of return for the fiscal year ended June 30, 2022, was (18.7)%, compared to 19.4% for the fiscal year ended June 30, 2021. \n(continued) 23 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \n \nA summary of the changes in the System's net position of the fiduciary funds for the year ended June 30, 2022 is as follows (dollars in thousands): \n \nAdditions: Employer contributions Nonemployer contributions Member contributions Participant fees Insurance premiums Net investment income (loss) Other Total additions \n \nChanges in net position \n \n2022 \n \n2021 \n \nAmount change \n \nPercentage change \n \n$ \n \n679,528 \n \n43,181 \n \n227,829 \n \n629 \n \n2,641 \n \n(2,591,381) \n \n14 \n \n(1,637,559) \n \n665,792 41,552 \n210,177 628 \n2,817 5,224,908 \n16 6,145,890 \n \n13,736 1,629 \n17,652 1 \n(176) (7,816,289) \n(2) (7,783,449) \n \n2.1 % 3.9 8.4 0.2 (6.2) (149.6) (12.5) (126.6) \n \nDeductions: Benefit payments Refunds Death benefits Administrative expenses Total deductions Change in net position \n \n1,796,842 17,921 55,053 16,354 \n1,886,170 $ (3,523,729) \n \n1,715,200 18,043 54,680 16,250 \n1,804,173 4,341,717 \n \n81,642 (122) 373 104 \n81,997 (7,865,446) \n \n4.8 (0.7) 0.7 0.6 4.5 (181.2)% \n \nAdditions  The System accumulates resources needed to fund benefit payments through contributions and returns on invested funds. In fiscal year 2022, total contributions increased $33.0 million, or 3.6%, primarily due to overall salary increases offset by a reduction in active membership. Net investment income decreased by $7.8 billion, or 149.6%, due primarily to equity and bond market losses in fiscal year 2022 compared to equity market gains in 2021. \nDeductions  For fiscal year 2022, total deductions increased $82.0 million, or 4.5%, primarily because of an increase in benefit payments of $81.6 million, or 4.8%, due to an increase in the number of retirees and beneficiaries receiving benefits. Refunds decreased by $122.0 thousand, or 0.7%, which was primarily due to a decrease in the number of refunds processed during 2022. Death benefits increased $373.0 thousand, or 0.7% primarily due to an increase in the number of death claims processed during 2022. Administrative expenses increased by $104.0 thousand, or 0.6%, primarily due to increased contractual services costs. \n \n(continued) 24 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \n \nA summary of the changes in the System's net position of the proprietary fund for the year ended June 30, 2022 is as follows (dollars in thousands): \n \nChanges in net position \n \n2022 \n \n2021 \n \nAmount change \n \nPercentage change \n \nOperating revenue: \n \nInsurance premiums \n \n$ \n \n479 \n \n521 \n \n(42) \n \n(8.1) % \n \nTotal operating revenue \n \n479 \n \n521 \n \n(42) \n \n(8.1) \n \nOperating expenses: Death benefits Administrative expenses Total operating expenses Total operating loss \n \n3,333 84 \n3,417 (2,938) \n \n4,870 77 \n4,947 (4,426) \n \n(1,537) 7 \n(1,530) 1,488 \n \n(31.6) 9.0 \n(30.9) 33.6 \n \nNonoperating revenue: \n \nAllocation of investment income from pooled investment fund, net \n \nChange in net position \n \n$ \n \n(47,933) (50,871) \n \n93,409 88,983 \n \n(141,342) (139,854) \n \n(151.3) (157.2) % \n \nOperating and nonoperating revenue  The proprietary fund accumulates resources needed to fund death benefit payments through premiums earned and returns on invested funds. In fiscal year 2022, total premiums earned decreased $42 thousand, or 8.1%, primarily due to a reduction of active membership offset by overall salary increases. Effective January 1, 2009, the plan was closed to new members. Allocation of investment income from the pooled investment fund, net of related expenses, decreased by $141.3 million, or 151.3%, primarily due to equity and bond market losses in fiscal year 2022 compared to equity market gains in 2021. \nOperating expenses  For fiscal year 2022, death benefits decreased by $1.5 million, or 31.6%, which was primarily due to a decrease in the number of death claims processed during 2022. Administrative expenses increased by $7.0 thousand over the prior year, or 9.0%, primarily due to increased contractual services costs. \nRequests for Information \nThis financial report is designed to provide a general overview of the System's finances for all those with interest in the System's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to Employees' Retirement System of Georgia, Two Northside 75, Suite 300, Atlanta, GA 30318. \n \n25 \n \n Financial Section \nCombining Statement of Fiduciary Net Position \nJune 30, 2022 (In thousands) \n \nAssets \nCash and cash equivalents \nReceivables: Contributions Interest and dividends Due from brokers for securities sold Other Unremitted insurance premiums \nTotal receivables \nInvestments - at fair value: Domestic obligations: U.S. treasuries Corporate and other bonds International obligations: Corporates Equities: Domestic International Private equity Mutual funds Commingled funds Equity in pooled investment fund \nTotal investments \nCapital assets, net \nNet OPEB asset \nTotal assets Deferred outflows of resources \nLiabilities Accounts payable and other Due to brokers for securities purchased Insurance premiums payable Due to participating systems Net OPEB liability \nTotal liabilities \nDeferred inflows of resources Net position restricted for: \nPensions and OPEB Survivors Benefit Fund \n \nDefined benefit plans \n \n$ \n \n19,012 \n \n31,987 -- -- \n2,469 412 \n34,868 \n \n-- -- \n-- \n-- -- -- -- -- 16,741,116 16,741,116 6,313 1,426 16,802,735 541 \n \n21,041 -- \n473 -- \n545 \n22,059 \n2,709 \n \n$ \n \n16,778,508 \n \n$ \n \n-- \n \nPooled Investment \nFund \n149,030 \n \nDefined contribution plans \n \nGeorgia Defined Contribution Plan \n \n401(k) Plan \n \n16,950 \n \n16,592 \n \n457 Plan \n1,134 \n \n-- 50,615 \n3,134 -- -- \n53,749 \n \n990 \n \n4,409 \n \n436 \n \n459 \n \n13 \n \n6 \n \n-- \n \n-- \n \n-- \n \n-- \n \n375 \n \n160 \n \n-- \n \n-- \n \n-- \n \n1,449 \n \n4,797 \n \n602 \n \n3,725,056 1,105,684 \n93,118 \n8,966,295 2,575,154 \n631,937 -- -- -- \n17,097,244 -- -- \n17,300,023 -- \n1,888 8,561 \n-- 17,289,574 \n-- 17,300,023 \n-- \n-- -- \n \n99,558 20,015 \n-- \n-- -- -- -- -- -- 119,573 -- -- 137,972 -- \n565 -- -- -- -- \n565 -- \n137,407 -- \n \n-- -- \n-- \n15,614 1,060 -- 3,816 \n1,514,432 -- \n1,534,922 -- -- \n1,556,311 -- \n2,871 -- -- -- -- \n2,871 -- \n1,553,440 -- \n \n-- -- \n-- \n9,944 1,211 \n-- 3,522 646,482 \n-- 661,159 \n-- -- 662,895 -- \n1,266 -- -- -- -- \n1,266 -- \n661,629 -- \n \nCustodial fund \nSurvivors Benefit Fund \n86 \n \nEliminations -- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n(412) \n \n-- \n \n(412) \n \n-- -- \n-- \n-- -- -- -- -- 191,101 191,101 -- -- 191,187 -- \n-- -- -- -- -- -- -- \n-- 191,187 \n \n-- -- \n-- \n-- -- -- -- -- (16,932,217) (16,932,217) -- -- (16,932,629) -- \n-- -- (412) (16,932,217) -- (16,932,629) -- \n-- -- \n \nSee accompanying notes to financial statements. \n \nTotal \n202,804 \n37,822 51,093 \n3,134 3,004 \n-- 95,053 \n3,824,614 1,125,699 \n93,118 \n8,991,853 2,577,425 \n631,937 7,338 \n2,160,914 -- \n19,412,898 6,313 1,426 \n19,718,494 541 \n27,631 8,561 61 \n357,357 545 \n394,155 2,709 \n19,130,984 191,187 \n \n26 \n \n Financial Section \n \nDefined Benefit Plans - Combining Statement of Fiduciary Net Position \nJune 30, 2022 (In thousands) \n \nAssets \nCash and cash equivalents \nReceivables: Contributions Interest and dividends Due from brokers for securities sold Other Unremitted insurance premiums \nTotal receivables \nInvestments - at fair value: Domestic obligations: U.S. treasuries Corporate and other bonds International obligations: Corporates Equities: Domestic International Private equity Mutual funds Commingled funds Equity in pooled investment fund \nTotal investments \nCapital assets, net \nNet OPEB asset \nTotal assets \nDeferred outflows of resources \nLiabilities \nAccounts payable and other Due to brokers for securities purchased Insurance premiums payable Due to participating systems Net OPEB liability \nTotal liabilities \nDeferred inflows of resources \nNet position restricted for pensions and OPEB \n \nDefined benefit pension plans \n \nEmployees' Retirement \nSystem \n \n$ \n \n17,889 \n \nPublic School Employees Retirement System \n223 \n \nLegislative Retirement \nSystem \n45 \n \nGeorgia Judicial Retirement System \n696 \n \nGeorgia Military Pension \nFund \n56 \n \n31,104 \n \n1 \n \n-- \n \n882 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n2,082 \n \n387 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n33,186 \n \n388 \n \n-- \n \n882 \n \n-- \n \n-- -- \n-- \n-- -- -- -- -- 13,793,518 13,793,518 6,313 1,426 13,852,332 541 \n18,645 -- \n464 -- \n545 19,654 \n2,709 \n$ 13,830,510 \n \n-- -- \n-- \n-- -- -- -- -- 1,026,546 1,026,546 -- -- 1,027,157 -- \n925 -- -- -- -- \n925 -- \n1,026,232 \n \n-- -- \n-- \n-- -- -- -- -- 36,112 36,112 -- -- 36,157 -- \n125 -- 1 -- -- \n126 -- \n36,031 \n \n-- -- \n-- \n-- -- -- -- -- 515,797 515,797 -- -- 517,375 -- \n813 -- 8 -- -- \n821 -- \n516,554 \n \n-- -- \n-- \n-- -- -- -- -- 34,923 34,923 -- -- 34,979 -- \n91 -- -- -- -- 91 -- \n34,888 \n \nSuperior Court Judges \nRetirement Fund 11 \n-- -- -- -- -- \n-- \n-- -- \n-- \n-- -- -- -- -- -- \n-- -- \n-- \n11 -- \n5 -- -- -- -- 5 \n-- \n6 \n \nDistrict Attorneys Retirement \nFund 4 \n-- -- -- -- -- -- \n-- -- \n-- \n-- -- -- -- -- -- -- -- -- 4 -- \n2 -- -- -- -- 2 -- \n2 \n \nDefined benefit OPEB plan \nState Employees' Assurance Department \nOPEB 88 \n-- -- -- -- 412 \n412 \n-- -- \n-- \n-- -- -- -- -- 1,334,220 \n1,334,220 -- \n-- \n1,334,720 -- \n435 -- -- -- -- \n435 \n-- \n1,334,285 \n \nDefined benefit plans \ntotal 19,012 \n31,987 -- -- \n2,469 412 \n34,868 \n-- -- \n-- \n-- -- -- -- -- 16,741,116 16,741,116 6,313 1,426 16,802,735 541 \n21,041 -- \n473 -- \n545 22,059 \n2,709 \n16,778,508 \n \nSee accompanying notes to financial statements. \n27 \n \n Financial Section \nCombining Statement of Changes in Fiduciary Net Position \nYear ended June 30, 2022 (In thousands) \n \nDefined contribution plans \n \nCustodial fund \n \nAdditions: Contributions: Employer Nonemployer Member Participant fees Insurance premiums Administrative expense allotment \nInvestment income (loss): Net decrease in fair value of investments Interest and dividends Other Less investment expenses Allocation of investment loss \nNet investment loss \nTotal additions \nDeductions: Benefit payments Refunds of member contributions and interest Death benefits Administrative expenses \nTotal deductions \nChange in net position \nNet position restricted for pensions and OPEB and SBF: \nBeginning of year \nEnd of year \n \nDefined benefit plans \n \nPooled Investment \nFund \n \nGeorgia Defined Contribution \nPlan \n \n401(k) Plan \n \n457 Plan \n \nSurvivors Benefit Fund \n \n$ \n \n621,990 \n \n-- \n \n43,181 \n \n-- \n \n44,196 \n \n-- \n \n-- \n \n-- \n \n2,641 \n \n-- \n \n14 \n \n-- \n \n-- -- -- (10,122) (2,241,862) \n(2,251,984) \n(1,539,962) \n \n(2,675,000) 369,968 -- (10,308) \n2,315,340 \n-- \n-- \n \n1,608,800 \n \n-- \n \n7,852 \n \n-- \n \n55,053 \n \n-- \n \n11,345 \n \n-- \n \n1,683,050 \n \n-- \n \n(3,223,012) \n \n-- \n \n20,001,520 \n \n-- \n \n$ 16,778,508 \n \n-- \n \n-- \n \n57,538 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n16,228 \n \n146,280 \n \n21,125 \n \n-- \n \n-- \n \n583 \n \n46 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n(10,356) 2,436 -- (72) -- \n(7,992) \n8,236 \n \n(220,752) 35 \n589 (2,476) \n-- \n(222,604) \n(18,203) \n \n(82,861) 17 \n502 (848) \n-- \n(83,190) \n(62,019) \n \n-- -- -- -- (25,611) \n(25,611) \n(25,611) \n \n9 10,069 \n-- 987 \n11,065 \n(2,829) \n \n137,593 -- -- \n3,437 \n141,030 \n(159,233) \n \n50,440 -- -- \n585 \n51,025 \n(113,044) \n \n-- -- -- -- \n-- \n(25,611) \n \n140,236 137,407 \n \n1,712,673 1,553,440 \n \n774,673 661,629 \n \n216,798 191,187 \n \nTotal \n679,528 43,181 \n227,829 629 \n2,641 14 \n(2,988,969) 372,456 1,091 (23,826) 47,867 \n(2,591,381) (1,637,559) \n1,796,842 17,921 55,053 16,354 \n1,886,170 (3,523,729) \n22,845,900 19,322,171 \n \nSee accompanying notes to financial statements. \n \n28 \n \n Financial Section \n \nDefined Benefit Plans - Combining Statement of Changes in Fiduciary Net Position \n \nYear ended June 30, 2022 (In thousands) \nAdditions: Contributions: Employer Nonemployer Member Participant fees Insurance premiums Administrative expense allotment \nInvestment income (loss): Net decrease in fair value of investments Interest and dividends Other Less investment expenses Allocation of investment loss \nNet investment loss \nTotal additions \n \nEmployees' Retirement \nSystem \n \nPublic School Employees Retirement System \n \nDefined benefit pension plans \n \nLegislative Retirement \nSystem \n \nGeorgia Judicial Retirement System \n \nGeorgia Military Pension \nFund \n \nSuperior Court Judges \nRetirement Fund \n \nDistrict Attorneys Retirement \nFund \n \nDefined benefit OPEB \nplan \nState Employees' Assurance Department \nOPEB \n \nDefined benefit plans \ntotal \n \n$ \n \n611,410 \n \n-- \n \n-- \n \n7,585 \n \n2,697 \n \n275 \n \n8,313 \n \n32,491 \n \n-- \n \n2,377 \n \n-- \n \n-- \n \n36,130 \n \n2,256 \n \n344 \n \n5,466 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n10 \n \n-- \n \n-- \n \n-- \n \n-- \n \n2 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n(8,912) \n \n(399) \n \n(16) \n \n(193) \n \n(6) \n \n-- \n \n(1,846,683) \n \n(137,746) \n \n(4,832) \n \n(69,141) \n \n(4,687) \n \n-- \n \n(1,855,595) \n \n(138,145) \n \n(4,848) \n \n(69,334) \n \n(4,693) \n \n-- \n \n(1,199,732) \n \n(103,398) \n \n(4,504) \n \n(53,906) \n \n(1,996) \n \n277 \n \n23 \n \n-- \n \n621,990 \n \n-- \n \n-- \n \n43,181 \n \n-- \n \n-- \n \n44,196 \n \n-- \n \n-- \n \n-- \n \n-- \n \n2,641 \n \n2,641 \n \n2 \n \n-- \n \n14 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n(596) \n \n(10,122) \n \n-- \n \n(178,773) \n \n(2,241,862) \n \n-- \n \n(179,369) \n \n(2,251,984) \n \n25 \n \n(176,728) \n \n(1,539,962) \n \nDeductions: Benefit payments Refunds of member contributions and interest Death benefits Administrative expenses \nTotal deductions \nChange in net position \nNet position restricted for pensions and OPEB: \n \n1,502,904 \n \n68,203 \n \n1,818 \n \n34,050 \n \n1,527 \n \n275 \n \n7,182 \n \n614 \n \n33 \n \n23 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n7,577 \n \n1,523 \n \n327 \n \n893 \n \n266 \n \n2 \n \n1,517,663 \n \n70,340 \n \n2,178 \n \n34,966 \n \n1,793 \n \n277 \n \n(2,717,395) \n \n(173,738) \n \n(6,682) \n \n(88,872) \n \n(3,789) \n \n-- \n \nBeginning of year End of year \n \n16,547,905 \n \n1,199,970 \n \n42,713 \n \n605,426 \n \n38,677 \n \n6 \n \n$ 13,830,510 \n \n1,026,232 \n \n36,031 \n \n516,554 \n \n34,888 \n \n6 \n \n23 \n \n-- \n \n1,608,800 \n \n-- \n \n-- \n \n7,852 \n \n-- \n \n55,053 \n \n55,053 \n \n2 \n \n755 \n \n11,345 \n \n25 \n \n55,808 \n \n1,683,050 \n \n-- \n \n(232,536) \n \n(3,223,012) \n \n2 \n \n1,566,821 \n \n20,001,520 \n \n2 \n \n1,334,285 \n \n16,778,508 \n \nSee accompanying notes to financial statements. \n \n29 \n \n Financial Section \nStatement of Net Position State Employees' Assurance Department Active Members Fund \nJune 30, 2022 (In thousands) \n \nAssets: \n \nCash and cash equivalents \n \n$ \n \nReceivables: Unremitted insurance premiums \n \nInvestments - at fair value: Equity share of pooled investment fund \n \nTotal assets \n \nLiabilities: \n \nAccounts payable and other \n \nTotal liabilities \n \nTotal net position \n \n$ \n \n82 \n61 \n357,357 357,500 \n48 48 357,452 \n \nSee accompanying notes to financial statements. \n \n30 \n \n Financial Section \nStatement of Revenues, Expenses, and Changes in Net Position State Employees' Assurance Department Active Members Fund \nYear ended June 30, 2022 (In thousands) \n \nOperating revenue: \n \nInsurance premiums \n \n$ \n \nTotal operating revenue \n \nOperating expenses: Death benefits Administrative expenses Total operating expenses Total operating loss \n \nNonoperating revenues (expenses): Allocation of investment loss from pooled investment fund Less investment expenses Total nonoperating expenses Change in net position \n \nTotal net position: \n \nBeginning of year \n \nEnd of year \n \n$ \n \n479 479 \n3,333 84 \n3,417 (2,938) \n(47,867) (66) \n(47,933) (50,871) \n408,323 357,452 \n \nSee accompanying notes to financial statements. \n \n31 \n \n Financial Section \nStatement of Cash Flows State Employees' Assurance Department Active Members Fund \nYear ended June 30, 2022 (In thousands) \n \nCash flows from operating activities: \n \nInsurance premiums received \n \n$ \n \nDeath benefits paid \n \nAdministrative fees paid \n \nNet cash used in operating activities \n \nCash flows from investing activities: Withdrawals from pooled investment fund Investment expenses paid Net cash provided by investing activities Net decrease in cash and cash equivalents \n \nCash and cash equivalents, beginning of year Cash and cash equivalents, end of year \n \nReconciliation of operating loss to net cash used in operating activities: Operating loss Changes in assets and liabilities: \n \nUnremitted Insurance Premiums \n \nAccounts payable and other \n \nNet cash used in operating activities \n \n$ \n \nSee accompanying notes to financial statements. \n \n479 (3,333) \n(82) (2,936) \n2,900 (66) \n2,834 (101) 183 \n82 \n(2,938) \n-- 2 (2,936) \n \n32 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \n \n(1) General \nThe accompanying basic financial statements of the Employees' Retirement System of Georgia, including all plans and funds administered by the Employees' Retirement System of Georgia (collectively, the System), comprise the Employees' Retirement System of Georgia (ERS), Public School Employees Retirement System (PSERS), Legislative Retirement System (LRS), Georgia Judicial Retirement System (GJRS), Georgia Military Pension Fund (GMPF), Superior Court Judges Retirement Fund (SCJRF), District Attorneys Retirement Fund (DARF), State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEAD-OPEB), Georgia Defined Contribution Plan (GDCP), State of Georgia Employees' Qualified Trust Deferred Compensation Plan (401(k) Plan), State of Georgia Employees' Deferred Compensation Plan (457 Plan), Survivors Benefit Fund (SBF), and State Employees' Assurance Department Active Members Fund (SEAD-Active). All significant transactions among the various systems, departments, and funds have been eliminated. The Boards of Trustees, comprising active and retired members, ex officio state employees, and appointees by the Governor, are ultimately responsible for the administration of the System. \n(2) Authorizing Legislation and Plan Descriptions \nEach plan and fund, including benefit and contribution provisions, was established and can be amended by state law. The following summarizes authorizing legislation and the plan description of each retirement fund: \n(a) ERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees (ERS Board) and has the powers and privileges of a corporation. There were 396 employers and 1 nonemployer contributing entity participating in the plan during 2022. Total participation in ERS at June 30, 2022 was 177,693 as detailed in the following chart: \nERS Membership as of June 30, 2022 \n \nInactive members and beneficiaries currently receiving benefits Inactive members entitled to benefits but not yet receiving benefits Active plan members \n \n52,526 \n \n54,530 \n \n70,637 \n \nBenefits The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the Old Plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are New Plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \nUnder the Old Plan, the New Plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service, \n(continued) 33 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \n \nregardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \n \nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \n \nContributions and Vesting \nMember contributions under the Old Plan are 4% of annual compensation, up to $4,200, plus 6% of annual compensation in excess of $4,200. Under the Old Plan, the state pays member contributions in excess of 1.25% of annual compensation. These state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the New Plan and GSEPS are 1.25% of annual compensation. The state is required to contribute at a specified percentage of active member payrolls, determined annually by actuarial valuation. The state contributions are not at any time refundable to the member or his/her beneficiary. \n \nPursuant to The Official Code of Georgia Annotated (O.C.G.A.) 47-2-292, the employer contributions for local tax commissioners and their employees who took office or were employed prior to July 1, 2012 are funded by the State of Georgia on behalf of the local county employer. Pursuant to O.C.G.A. 47-2-290, the employer contribution for certain State Court employees is funded by the state on behalf of the local county employer. \n \nEmployer and nonemployer contributions as a percentage of covered payroll required for fiscal year 2022 were based on the June 30, 2019 actuarial valuation for the Old Plan, New Plan, and GSEPS, as follows: \nOld Plan New Plan GSEPS \n \nEmployer and nonemployer: Normal Employer paid for member Accrued liability \n \n1.48 % 4.75 % 18.40 % \n \n6.23 % -- % \n18.40 % \n \n3.17 % -- % \n18.40 % \n \nTotal \n \n24.63 % 24.63 % 21.57 % \n \nMembers become vested after 10 years of membership service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \n(b) PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board, plus two additional trustees, administers PSERS (PSERS Board). There were 188 employers and 1 nonemployer contributing entity participating in the plan during 2022. Total participation in PSERS at June 30, 2022 was 105,412 as detailed in the chart on the following page: \n \n(continued) 34 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \nPSERS Membership as of June 30, 2022 \n \nInactive members and beneficiaries currently receiving benefits Inactive members entitled to benefits but not yet receiving benefits Active plan members \n \n31,833 \n \n19,852 \n \n53,727 \n \nBenefits A member may retire and elect to receive normal monthly retirement benefits after completion of 10 years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of 10 years of service. \nUpon retirement, the member will receive a monthly benefit of $15.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. \nContributions and Vesting Individuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board. \nEmployer contributions required for the year ended June 30, 2022 were $888.52 per active member and were based on the June 30, 2019 actuarial valuation. \nMembers become vested after 10 years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \n(c) LRS is a single-employer defined benefit pension plan established by the Georgia General Assembly from 19671971, and later reestablished in 1979, for the purpose of providing retirement allowances for all members of the Georgia General Assembly. LRS is administered by the ERS Board. There was one employer in the plan for 2022. Total participation in LRS at June 30, 2022 was 662 as detailed in the following chart: \nLRS Membership as of June 30, 2022 \n \nInactive members and beneficiaries currently receiving benefits Inactive members entitled to benefits but not yet receiving benefits Active plan members \n \n217 281 \n164 \n \n(continued) 35 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \nBenefits A member's normal retirement is after eight years of creditable service and attainment of age 65, or eight years of membership service (four legislative terms) and attainment of age 62. A member may retire early and elect to receive a monthly retirement benefit after completion of eight years of membership service and attainment of age 60; however, the retirement benefit is reduced by 5% for each year the member is under age 62. \nUpon retirement, the member will receive a monthly service retirement allowance of $36, multiplied by the number of years of creditable service. Death benefits are also available through the plan. \nContributions and Vesting Member contributions are 8.5% of annual salary. The state pays member contributions in excess of 4.75% of annual compensation. Employer contributions are actuarially determined and approved and certified by the ERS Board. \nThere were no employer contributions required for the year ended June 30, 2022 based on the June 30, 2019 actuarial valuation. \nMembers become vested after eight years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \n(d) GJRS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1998 for the purpose of providing retirement allowances for judges and solicitors general of the state courts and juvenile court judges in Georgia, and their survivors and other beneficiaries, superior court judges of the State of Georgia, district attorneys of the State of Georgia, and certain other employees of the General Assembly of the State of Georgia. \nThe GJRS was also created to serve the members and beneficiaries of the Trial Judges and Solicitors Retirement Fund, the Superior Court Judges Retirement System, and the District Attorneys Retirement System (collectively, the Predecessor Retirement Systems). As of June 30, 1998, any person who was an active, inactive, or retired member or beneficiary of the Predecessor Retirement Systems was transferred to GJRS in the same status effective July 1, 1998. All assets of the Predecessor Retirement Systems were transferred to GJRS as of July 1, 1998. The ERS Board and three additional trustees administer GJRS (GJRS Board). There were 92 employers and 1 nonemployer contributing entity participating in the plan during 2022. Total participation in GJRS at June 30, 2022 was 1,073 as detailed in the following chart: \nGJRS Membership as of June 30, 2022 \n \nInactive members and beneficiaries currently receiving benefits Inactive members entitled to benefits but not yet receiving benefits Active plan members \n \n524 \n \n467 \n \n82 \n \n(continued) 36 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \nBenefits The normal retirement for GJRS is age 60, with 16 years of creditable service; however, a member may retire at age 60 with a minimum of 10 years of creditable service. \nAnnual retirement benefits paid to members are computed as 66% of state-paid salary at retirement for district attorneys and superior court judges and 66% of the average over 24 consecutive months for trial judges and solicitors, plus 1% for each year of credited service over 16 years, not to exceed 24 years. Early retirement benefits paid to members are computed as the pro rata portion of the normal retirement benefit, based on service not to exceed 16 years. Death, disability, and spousal benefits are also available. \nContributions and Vesting Members are required to contribute 7.5% of their annual salary. Those who became members prior to July 1, 2012 must also contribute an additional 2.5% of their annual salary if spousal benefit is elected. Employer contributions are actuarially determined and approved and certified by the GJRS Board. \nPursuant to O.C.G.A. 47-23-81, the employer contributions for state court judges and solicitors are funded by the State of Georgia on behalf of the local county employers and pursuant to O.C.G.A. 47-23-82, the employer contributions for juvenile court judges are funded by the state on behalf of local county employers. \nEmployer and nonemployer contributions required for fiscal year 2022 were based on the June 30, 2019 actuarial valuation, as follows: \n \nEmployer and nonemployer: Normal Accrued liability Total \n \n13.93 % (5.12) 8.81 % \n \nMembers become vested after 10 years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \n(e) GMPF is a single-employer defined benefit pension plan established on July 1, 2002 by the Georgia General Assembly for the purpose of providing retirement allowances and other benefits for members of the Georgia National Guard (the National Guard). The ERS Board administers the GMPF. \nMembership As of June 30, 2022, GMPF had 1,472 retirees and beneficiaries currently receiving benefits. Active and inactive plan member information is maintained by one employer, the Georgia Department of Defense. \nBenefits A member becomes eligible for benefits upon attainment of age 60, with 20 or more years of creditable service (including at least 15 years of service as a member of the National Guard), having served at least 10 consecutive years as a member of the National Guard immediately prior to discharge, and having received an honorable discharge from the National Guard. \nThe retirement allowance is payable for life in the amount of $50 per month, plus $5 per month for each year of creditable service in excess of 20 years. The maximum benefit is $100 per month. \n \n(continued) 37 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \nContributions and Vesting Employer contributions are actuarially determined and approved and certified by the ERS Board. There are no member contributions required. \nEmployer contributions required for the year ended June 30, 2022 were $196.72 per active member and were based on the June 30, 2019 actuarial valuation. \nA member becomes vested after 20 years of creditable service (including at least 15 years of service as a member of the National Guard), having served at least 10 consecutive years as a member of the National Guard immediately prior to discharge, and having received an honorable discharge from the National Guard. \n(f) SCJRF is a single-employer defined benefit pension plan established by the Georgia General Assembly in 1945 for the purpose of providing retirement benefits to the superior court judges of the State of Georgia. SCJRF is directed by its own Board of Trustees (SCJRF Board). The ERS Board and SCJRF Board entered into a contract for the System to administer the plan effective July 1, 1995. \nMembership As of June 30, 2022, SCJRF had four retirees and beneficiaries currently receiving benefits and no active members. No new members are allowed in SCJRF. \nBenefits The normal retirement for SCJRF is age 68, with 19 years of creditable service, with a benefit of two-thirds the salary paid to superior court judges. A member may also retire at age 65, with a minimum of 10 years of creditable service, with a benefit of one-half the salary paid to superior court judges. Death, disability, and spousal benefits are also available. \nContributions and Vesting Employer contributions are not actuarially determined, but are provided on an as-needed basis to fund current benefits. \n(g) DARF is a multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1949 for the purpose of providing retirement benefits to the district attorneys of the State of Georgia. DARF is directed by its own Board of Trustees (DARF Board). The ERS Board and DARF Board entered into a contract for the System to administer the plan effective July 1, 1995. \nMembership As of June 30, 2022, DARF had two retirees and beneficiaries currently receiving benefits and no active members. No new members are allowed into DARF. \nBenefits Persons appointed as district attorney emeritus shall receive an annual benefit of $15,000, or one-half of the state salary received by such person as a district attorney for the calendar year immediately prior to the person's retirement, whichever is greater. \nContributions and Vesting Employer contributions are not actuarially determined, but are provided on an as-needed basis to fund current benefits. \n(h) SEAD-OPEB is a cost-sharing multiple-employer defined benefit other postemployment benefit plan created in 2007 by the Georgia General Assembly to amend Title 47 of the O.C.G.A., relating to retirement, so as to establish a fund for the provision of term life insurance to retired and vested inactive members of ERS, LRS, and GJRS. Effective July 1, 2009, no newly hired members of any Georgia public retirement system are \n(continued) 38 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \neligible for term life insurance under SEAD. The SEAD-OPEB trust fund accumulates the premiums received from the aforementioned retirement systems, including interest earned on deposits and investments of such payments from retired and vested inactive members. There were 389 employers and 1 nonemployer contributing entity participating in the plan during 2022. Total participation in SEAD-OPEB at June 30, 2022 was 62,356 as detailed in the following chart: \nSEAD Membership as of June 30, 2022 \n \nRetirees and beneficiaries Terminated employees Active plan members \n \n1,059 \n \n16,926 44,371 \n \nEmployee contribution rates as a percentage of member's salaries for the fiscal year ended June 30, 2022 were as follows: ERS Old Plan  0.45% and ERS New Plan, LRS, and GJRS  0.23%. ERS Old Plan members were hired prior to July 1, 1982 and New Plan members were hired on or after July 1, 1982, but prior to January 1, 2009. \nGeorgia law provides that employee contributions to the plan shall be in an amount established by the Board of Trustees (SEAD Board) not to exceed one-half of 1% of the member's earnable compensation. There were no employer contributions required for the fiscal year ended June 30, 2022. \nAccording to the policy terms covering the lives of members, insurance coverage is provided on a monthly, renewable term basis, and no return premiums or cash value are earned. The net position represents the excess accumulation of investment income and premiums over benefit payments and expenses, and is held as a reserve for payment of death benefits under existing policies. \nThe amount of insurance for a retiree with creditable service prior to April 1, 1964 is the full amount of insurance under SEAD-Active in effect on the date of retirement. The amount of insurance for a service retiree with no creditable service prior to April 1, 1964 is 70% of the amount of insurance under SEAD-Active at age 60 or at termination, if earlier. Life insurance proceeds are paid in a lump sum to the beneficiary upon death of the retiree. \nAdministrative costs for the plan are determined based on the plan's share of overhead costs to accumulate and invest funds, actuarial services, and to process benefit payments to beneficiaries. Administrative fees are financed from the assets of the plan. \n(i) GDCP is a defined contribution plan established by the Georgia General Assembly in July 1992 for the purpose of providing retirement allowances for state employees who are not members of a public retirement or pension system and do not participate in Social Security. GDCP is administered by the ERS Board. There were 65 employers participating in the plan during 2022. There were 137,153 members as of June 30, 2022. \nBenefits A member may retire and elect to receive periodic payments after attainment of age 65. The payments will be based upon mortality tables and interest assumptions adopted by the ERS Board. If a terminated member has less than $5,000 credited to his/her account, the ERS Board has the option of requiring a lump-sum \n(continued) 39 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \ndistribution to the member. Upon the death of a member, a lump-sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary. \nContributions and Vesting Members are required to contribute 7.5% of their annual salary and vest immediately in the plan upon contribution. There are no employer contributions. Earnings will be credited to each member's account as adopted by the ERS Board. Upon termination of employment, the amount of the member's account is refundable upon request by the member. \n(j) The 401(k) Plan was established by the State of Georgia Employee Benefit Plan Council in accordance with Georgia Law 1985, as amended, O.C.G.A, Sections 45-18-50 through 45-18-58, and Section 401(k) of the Internal Revenue Code (IRC). On October 1, 1994, activity commenced when the 401(k) Plan became available to employees of the State of Georgia Community Service Boards (CSBs). On December 1, 1998, the 401(k) Plan became available to employees of the Georgia Lottery Corporation (GLC). On July 1, 2005, the Plan became available to employees of Fayette County Board of Education, however, on July 1, 2020, Fayette County Board of Education discontinued participation; on July 1, 2006, the Plan became available to employees of Walton County Board of Education; on January 1, 2010, the Plan became available to employees of Henry County Board of Education; and on July 1, 2017, the Plan became available to employees of the Baldwin County Board of Education. \nEffective July 1, 1998, the State of Georgia Employee's Deferred Compensation Group Trust (the Master Trust) was formed for the State of Georgia Deferred Compensation Program to serve as the funding medium for the 401(k) Plan. At that time, the 401(k) Plan began operating on an employee elective deferral basis for all state employees working at least 1,000 hours in a 12-month period. All assets of the 401(k) Plan are held in trust for the exclusive benefit of the participants and their beneficiaries. The assets of the 401(k) Plan and the 457 Plan are commingled in the Master Trust with the respective trusts owning units of the Master Trust. Participant contributions are invested according to the participant's investment election. If the participant does not make an election, investments are automatically defaulted to a Lifecycle Fund based on the participant's date of birth. \nEffective July 1, 2005 (HB275), the ERS Board became the trustee of the 401(k) Plan. Alight Solutions and J.P. Morgan hold, administer, and invest the assets of the Master Trust. \nContributions and Vesting Participating CSBs, the GLC, and Walton and Henry County Boards of Education offer employer contributions, some matching, some automatic, and some a combination of both, to eligible employees at various rates (limited to a maximum of $290,000 base salary in calendar year 2021 and $305,000 in calendar year 2022). As of January 1, 2009, individual participants may defer up to 80% of eligible compensation, or up to limits prescribed by the IRC (whichever is less). \nEffective January 1, 2009, in accordance with O.C.G.A. 47-2-350 through 47-2-360, newly hired state employees, as well as rehired state employees who did not maintain eligibility for the ERS Old Plan or New Plan, are members of GSEPS. From January 1, 2009 to June 30, 2014, the GSEPS tier included automatic enrollment in the 401(k) Plan at a contribution rate of 1% of salary. Effective July 1, 2014, in accordance with HB764, the employee contribution rate for automatic enrollment increased from 1% to 5%. The State matches 100% of the employee's initial 1% contribution and 50% of contributions above 1% and up to 5%. Therefore, the state will match 3% of salary when an employee contributes at least 5% to the 401(k) Plan. Employee contributions greater than 5% of salary do not receive any additional matching funds. Plan participants who are not employees of the GLC, a CSB, Walton and Henry County Boards of Education, or who are not GSEPS eligible, do not receive any employer contributions in their 401(k) Plan. \n(continued) 40 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \n \nAll employer contributions are subject to a vesting schedule, which determines eligibility to receive all or a portion of the employer contribution balance at the time of any distribution from the account after separation from all state service. Vesting is determined based on the schedule as follows: \n \nLess than 1 year 1 2 3 4 5 or more years \n \n-- % 20 40 60 80 100 \n \nFor CSB/GLC participants whose services terminated prior to January 1, 2010 but after December 31, 2001, the following vesting schedule applies: \n \nLess than 2 years 2 3 4 5 6 or more years \n \n-- % 20 40 60 80 100 \n \nFor CSB/GLC participants whose services terminated prior to January 1, 2002, the following vesting schedule applies: \n \nLess than 3 years 3 4 5 6 7 or more years \n \n-- % 20 40 60 80 100 \n \nEmployee contributions and earnings thereon are 100% vested at all times. The 401(k) Plan also allows participants to roll over amounts from other qualified plans to their respective account in the 401(k) Plan on approval by the 401(k) plan administrator. Such rollovers are 100% vested at the time of transfer. \nParticipation As of June 30, 2022, the 401(k) Plan had 74,098 participants with a balance. A total of 461 employers transmitted contributions to the plan during 2022. \nDistributions The participant may receive the value of his or her vested accounts upon attaining age 59 , qualifying financial hardship, or 30 days after retirement or other termination of service (employer contribution balances are only eligible for distribution upon separation from service). Upon the death of a participant, his or her beneficiary shall be entitled to the vested value of his or her accounts. Employees who die while actively employed and eligible for 401(k) Plan employer matching contributions become fully vested in employer contributions upon death. Distributions are made in installments or in a lump sum. \n(k) The 457 Plan was established by the State Personnel Board in accordance with Georgia Law 1974, page 198 as amended, O.C.G.A., Sections 45-18-30 through 45-18-36, and Section 457 of the IRC. The 457 Plan is available to employees of the State of Georgia and county health departments and permits such \n(continued) 41 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \nemployees to defer a portion of their annual salary until future years. Employee contributions and earnings thereon are 100% vested at all times. \nEffective July 1, 1998, the Master Trust was formed for the State of Georgia Deferred Compensation Program to serve as the funding medium for the 457 Plan. All assets of the 457 Plan are held in trust for the exclusive benefit of the participants and their beneficiaries. The assets of the 457 Plan and the 401(k) Plan are commingled in the Master Trust with the respective trusts owning units of the Master Trust. Participant contributions are invested according to the participant's investment election. If the participant does not make an election, investments are automatically defaulted to a Lifecycle Fund based on the participant's date of birth. \nEffective July 1, 2005 (HB275), the ERS Board became the trustee of the 457 Plan. Alight Solutions and J.P. Morgan hold, administer, and invest the assets of the Master Trust. \nParticipation As of June 30, 2022, the 457 Plan had 11,718 participants with a balance. A total of 336 employers transmitted contributions to the plan during 2022. \nDistributions The balance in the employee's account in the 457 Plan is not available to the employee until age 70 , termination, retirement, death, or unforeseeable emergency, as defined in the 457 Plan. Upon the death of a participant, his or her beneficiary shall be entitled to the vested value of his or her accounts. Distributions are made in installments or in a lump sum. \n(l) SBF was established under O.C.G.A. 47-2-128(c)(3) within the ERS trust solely for maintaining group term life insurance coverage for members of the plan. All assets of SBF are therefore limited to the payment of benefits and expenses for such coverage and cannot be used to pay pension benefits of ERS. SBF is shown on the financial statements separately as a custodial fund to reflect ERS's custodial responsibility and to account for assets held for distribution to SEAD-Active and SEAD-OPEB. SBF may only be used to pay benefits or expenses of SEAD-OPEB or SEAD-Active with authorization by the ERS Board. An actuarial valuation is not prepared, as there are no funding requirements. \n(m) SEAD-Active is a cost-sharing multiple-employer life insurance plan created in 2007 by the Georgia General Assembly to amend Title 47 of the O.C.G.A., relating to retirement, so as to establish a fund for the provision of term life insurance to active members of ERS, LRS, and GJRS. Effective July 1, 2009, no newly hired members of any Georgia public retirement system are eligible for term life insurance under SEAD. The SEAD-Active fund accumulates the premiums received from the aforementioned retirement systems, including interest earned on deposits and investments of such payments from active members. There were 389 employers and 1 nonemployer contributing entity participating in the plan during 2022. As of June 30, 2022, there were 16,926 active plan members in SEAD-Active. \nEmployee contribution rates as a percentage of member's salaries for the fiscal year ended June 30, 2022 were as follows: ERS Old Plan  0.05% and ERS New Plan, LRS, and GJRS  0.02%. ERS Old Plan members were hired prior to July 1, 1982 and new plan members were hired on or after July 1, 1982, but prior to January 1, 2009. \nGeorgia law provides that employee contributions to the plan shall be in an amount established by the SEAD Board not to exceed one-half of 1% of the member's earnable compensation. There were no employer contributions required for the fiscal year ended June 30, 2022. \nAccording to the policy terms covering the lives of members, insurance coverage is provided on a monthly, renewable term basis, and no return premiums or cash value are earned. The net position represents the \n(continued) 42 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \nexcess accumulation of investment income and premiums over benefit payments and expenses, and is held as a reserve for payment of death benefits under existing policies. \nThe amount of insurance coverage is equal to 18 times monthly earnable compensation frozen at age 60. For members with no creditable service prior to April 1, 1964, the amount decreases from age 60 by a half of 1% per month until age 65, at which point the member will be covered for 70% of the age 60 coverage. Life insurance proceeds are paid in a lump sum to the beneficiary upon death of the member. \nAdministrative costs for the plan are determined based on the plan's share of overhead costs to accumulate and invest funds, actuarial services, and to process benefit payments to beneficiaries. Administrative fees are financed from the assets of the plan. \n(3) Significant Accounting Policies and System Asset Matters \n(a) Basis of Accounting The System's financial statements are prepared in accordance with U.S. generally accepted accounting principles as applicable to governmental organizations. The System follows the reporting requirements established by the GASB. \nFiduciary funds include the defined benefit plans and defined contribution plans, which are accounted for on the flow of economic resources measurement focus and the accrual basis of accounting. Contributions to the defined benefit pension plans and OPEB plan are recognized when due, based on statutory requirements. Benefits and refunds are recognized when due and payable in accordance with the terms of each plan. Contributions to the deferred compensation plans are recognized as received. The SBF is a custodial fund and accounted for on the flow of economic resources measurement focus and the accrual basis of accounting. The proprietary fund comprises the SEAD-Active plan. This fund is accounted for on the flow of economic resources measurement focus and uses the accrual basis of accounting. The principal operating revenues are derived from insurance premiums. Operating expenses include the cost of claims and related expenses. \n(b) Reporting Entity The System is a component unit of the State of Georgia; however, it is accountable for its own fiscal matters and presentation of its separate financial statements. The System has considered potential component units under GASB Statements No. 80, Blending Requirements for Certain Component Units, No. 61, The Financial Reporting Entity's Omnibus  An Amendment of GASB Statement No. 14 and No. 34, and No. 39, Determining Whether Certain Organizations are Component Units, and determined there were no component units of the System. \n(c) Cash and Cash Equivalents Cash and cash equivalents, reported at cost, include cash on deposit at banks and cash on deposit with the investment custodian. \n(d) Investments Investments are reported at fair value, and in some cases, net asset value (NAV) as a practical expedient to fair value. Equity securities traded on a national or international exchange are valued at the last reported sales price. Investments in private investment companies are valued utilizing the NAVs provided by the underlying private investment companies as a practical expedient. The Pooled Investment Fund (the Fund) applies the practical expedient to its investments in private investment companies on an investment-byinvestment basis, consistent with the Fund's entire position in a particular investment, unless it is probable that the Fund will sell a portion of an investment at an amount different from the NAV of the investment. Private equity fair value is measured using the valuation of the underlying companies as reported by the general partner. These investments, in the form of limited partnerships, reflect values and related \n(continued) 43 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \nperformance on a quarter-lag basis due to the nature of the investments and the time it takes to value them. The estimated fair value of investments without readily determinable market values could differ significantly if a ready market for these assets existed. Fixed income securities are valued based primarily on quoted market prices provided by independent pricing sources. Global foreign exchange holdings are translated using a third-party vendor. Investment income is recognized as earned by the System. There are no investments in, loans to, or leases with parties related to the System. \nThe System utilizes various investment instruments. Investment securities, in general, are exposed to various risks, such as interest rate, credit, foreign currency, and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the financial statements. \nThe System's policy with regard to the allocation of invested assets is established on a cost basis in compliance with Georgia statute. Plan assets are managed on a total return basis with a long-term objective of achieving and maintaining a fully funded status for the benefits provided through the pension and OPEB plans. The following was the System's adopted asset allocation policy as of June 30, 2022: \n \nAsset class Fixed income Equities Alternative investments \nTotal \n \nTarget allocation 25%-45% 55%-75% 0%-5% 100% \n \nApproximately 19.7% of the investments held in trust for pension and OPEB benefits are invested in debt securities of the U.S. government. The System has no investments in any one organization, other than those issued by the U.S. government and its instrumentalities, that represent 5% or more of the System's net position restricted for pensions and OPEB and SBF. \nFor the year ended June 30, 2022, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was (18.7)%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. \n(e) Capital Assets Capital assets, including software development costs, are stated at cost less accumulated depreciation and reside in ERS. The capitalization thresholds are $100,000 for buildings and building improvements and $5,000 for equipment and vehicles. Depreciation on capital assets is computed using the straight-line method over estimated useful lives of 3 to 40 years. Depreciation expense is included in administrative expenses. Maintenance and repairs are charged to administrative expenses when incurred. When assets are retired or otherwise disposed of, the costs and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in the Combining Statement of Changes in Fiduciary Net Position in the period of disposal. The following table summarizes the estimated useful life by class: \n \nCapital Asset Class \nBuildings Furniture and fixtures Computer equipment Computer software \n \nEstimated Useful Life \n40 years 5-7 years 3-7 years 3-10 years \n \n(continued) 44 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \n(f) Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of net position and changes therein. Actual results could differ from those estimates. \n(g) New Accounting Pronouncements \nPronouncements effective for the 2022 financial statements: \nIn June 2017, the GASB issued Statement No. 87, Leases effective for fiscal years beginning after December 15, 2019. In May 2020, the GASB issued Statement No. 95 which changed the effective date for Statement No. 87 to fiscal years beginning after June 15, 2021. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. The System has evaluated its applicable leases and deemed them immaterial for reporting purposes. \nIn June 2018, the GASB issued Statement No. 89, Accounting for Interest Costs Incurred before the End of a Construction Period effective for fiscal years beginning after December 15, 2019. In May 2020, the GASB issued Statement No. 95 which changed the effective date for Statement No. 89 to fiscal years beginning after December 15, 2020. The objectives of this Statement are to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period. In addition, this Statement's goal is to simplify accounting for interest cost incurred before the end of a construction period. There are no applicable reporting requirements for the System related to this Statement. \nIn January 2020, the GASB issued Statement No. 92, Omnibus 2020 effective for fiscal years beginning after June 15, 2020. In May 2020, the GASB issued Statement No. 95 which changed the effective date for Statement No. 92 to fiscal years beginning after June 15, 2021. The objectives of this Statement are to enhance comparability in accounting and financial reporting as well as improve the consistency of authoritative literature. The variety of topics covered include the effective date for Statement No. 87, the reporting of intra-entity transfers, the applicability of certain requirements of Statements No. 73, 74, and 84, and the measurement of liabilities related to asset retirement obligations. There are no applicable reporting requirements for the System related to this Statement. \nIn March 2020, the GASB issued Statement No. 93, Replacement of Interbank Offered Rates, effective for fiscal years ending after December 31, 2021 for the removal of LIBOR as a benchmark interest rate. The objective of this Statement is to address the accounting and financial reporting implications that result from the replacement of LIBOR. There are no applicable reporting requirements for the System related to this Statement. \nIn June 2020, the GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans - an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32, effective for fiscal years beginning after June 15, 2021. The objectives of this Statement are to increase consistency and comparability related to the reporting of fiduciary component units when a potential component unit does not have a governing board, mitigate the costs associated with the reporting of defined contribution pension plans or other postemployment benefit plans as fiduciary component units, and enhance the relevance, consistency, and comparability for Internal Revenue Code Section 457 deferred compensation plans. There are no applicable reporting requirements for the System related to this Statement. \n(continued) 45 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \nIn April 2022, the GASB issued Statement No. 99, Omnibus 2022, effective upon issuance, except for the requirements related to leases, PPP's, and SBITAs that are effective for fiscal years beginning after June 15, 2022 and for the requirements related to financial guarantees and classification and reporting of derivative instruments that are effective for fiscal years beginning after June 15, 2023. The objective of this Statement is to improve the consistency of authoritative literature and enhance the comparability in accounting and financial reporting. The variety of topics covered include the requirements related to the extension of the use of LIBOR, disclosures of nonmonetary transactions, pledges of future revenues by the pledging governments, clarification of provisions in Statement No. 34, and terminology used in Statement No. 53 and 63. There are no applicable reporting requirements for the System related to this Statement \nPronouncements issued, but not yet effective: \nIn May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations effective for fiscal years beginning after December 15, 2020. In May 2020, the GASB issued Statement No. 95 which changed the effective date for Statement No. 91 to fiscal years beginning after December 15, 2021. The objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with commitments extended by issuers, arrangements associated with conduit debt obligations, and related note disclosures. The System does not anticipate this statement will impact its financial statements and related reporting. \nIn March 2020, the GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements effective for fiscal years beginning after June 15, 2022. The objective of this Statement is to improve the comparability of financial statements among governments that enter into public-private and public-public partnership arrangements and availability payment arrangements. The System does not anticipate this pronouncement will impact its financial statements and related reporting. \nIn May 2020, the GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements, effective for fiscal years beginning after June 15, 2022. The objective of this Statement is to better meet the informational needs of financial statement users by establishing uniform accounting and financial reporting requirements and improving the comparability of financial statements among governments that have entered into subscription-based information technology arrangements. The System is in the process of evaluating the impact of this pronouncement on its financial statements. \nIn April 2022, the GASB issued Statement No. 99, Omnibus 2022, effective for fiscal years beginning after June 15, 2022 for the requirements related to leases, PPP's, and SBITAs, and effective for fiscal years beginning after June 15, 2023 for the requirements related to financial guarantees and classification and reporting of derivative instruments. The objective of this Statement is to improve the consistency of authoritative literature and enhance the comparability in accounting and financial reporting. The System is in the process of evaluating the impact of this pronouncement on its financial statements. \nIn June 2022, the GASB issued Statement No. 100, Accounting Changes and Error Corrections -- an amendment of GASB Statement No. 62, effective for fiscal years beginning after June 15, 2023. The objective of this Statement is to improve the clarity of the accounting and financial reporting for accounting changes and error corrections to have greater consistency in the application. The System is in the process of evaluating the impact of this pronouncement on its financial statements. \nIn June 2022, the GASB issued Statement No. 101, Compensated Absences, effective for fiscal years beginning after December 15, 2023. The objective of this Statement is to eliminate potential comparability issues between governments that offer different leave types and enhance the relevance and reliability of the liability for compensated absences. The System is in the process of evaluating the impact of this pronouncement on its financial statements. \n(continued) 46 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \n(4) Investment Program \nThe System maintains sufficient cash to meet its immediate liquidity needs. Cash not immediately needed is invested as directed by the ERS Board. All investments are held by agent custodial banks in the name of the System. State statutes and the System's investment policy authorize the System to invest in a variety of short- term and long-term securities as follows: \n(a) Cash and Cash Equivalents Custodial credit risk is the risk that in the event a depository institution or counterparty fails, the System would not be able to recover the value of its deposits or investments. The System does not have a formal policy relating to custodial credit risk. The carrying amount of the System's deposits totaled $202.8 million at June 30, 2022, with actual bank balances of $208.0 million. The System's bank balances of $191.9 million are fully insured through the Federal Deposit Insurance Corporation, an independent agency of the U.S. government. Deposit amounts not covered under FDIC in the amount of $39.2 thousand are included in the State's Secure Deposit Program (SDP) and are fully insured. In 2018, the State of Georgia implemented the SDP, a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. For disclosure purposes, all deposits of participants in the SDP are considered to be fully insured. The remaining bank deposits of $16.1 million are uninsured and uncollateralized. The System's noncash investments are held in the System's name and are not exposed to custodial credit risk. \nThe System engages in repurchase and reverse repurchase agreements as part of the securities lending program. The System and the broker exchange cash for direct obligations of the U.S. government or obligations unconditionally guaranteed by agencies of the U.S. government or U.S. corporations. The System or broker promises to repay the cash received plus interest at a specific date in the future in exchange for the same securities. \nShort-term securities authorized but not currently used are: \n U.S. Treasury obligations \n Commercial paper, with a maturity of 180 days or less. Commercial paper is an unsecured promissory note issued primarily by corporations for a specific amount and maturing on a specific day. The System considers for investment only commercial paper of the highest quality, rated P-l and/or A-l by national credit rating agencies. \n Master notes, an overnight security administered by a custodian bank and an obligation of a corporation whose commercial paper is rated P-l and/or A-l by national credit rating agencies. \nInvestments in commercial paper or master notes are limited to no more than $500 million in any one name. \n(b) Investments Fixed income investments, managed by the Division of Investment Services (the Division), are authorized in the following instruments: \n U.S. and foreign government obligations. At June 30, 2022, the System held U.S. Treasury bonds of approximately $3.8 billion. \n U.S. and foreign corporate obligations. At June 30, 2022, the System held U.S. corporate bonds of approximately $1.1 billion and international corporate bonds of approximately $93.1 million. \n(continued) 47 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \n Obligations unconditionally guaranteed by agencies of the U.S. government. At June 30, 2022, the System did not hold agency bonds. \n Private placements are authorized under the same general restrictions applicable to corporate bonds. At June 30, 2022, the System did not hold private placements. \nMortgage investments are authorized to the extent that they are secured by first mortgages on improved real property located in the State of Georgia. \nEquity securities are also authorized (in statute) for investment as a complement to the System's fixed income portfolio and as a long-term inflation hedge. By statute, no more than 75% of the total invested assets on a historical cost basis may be placed in equities. Equity holdings in any one corporation may not exceed 5% of the outstanding equity of the issuing corporation. The equity portfolio is managed by the Division, in conjunction with independent advisers. Buy/sell decisions are based on securities meeting rating criteria established by the ERS Board, in-house research considering such matters as yield, growth, and sales statistics, and analysis of independent market research. Equity trades are approved and executed by the Division's staff. Common stocks eligible for investment are approved by the Investment Committee of the ERS Board before being placed on an approved list. \nEquity investments are authorized in the following instruments: \n Domestic equities are those securities considered by O.C.G.A. to be domiciled in the United States. At June 30, 2022, the System held domestic equities of approximately $9.0 billion, excluding the 401(k) and 457 plans. \n International equities, including American Depository Receipts (ADR), are not considered by the O.C.G.A. to be domiciled in the United States. At June 30, 2022, the System held international equities of approximately $1.3 billion and ADRs of approximately $1.3 billion, excluding the 401(k) and 457 plans. \n Alternative investments are authorized (in statute) to provide portfolio diversification and to enhance the risk-adjusted rate of return for the retirement fund that benefits the members of the System. By statute, the allocation to alternative investments shall not, in the aggregate, exceed 5% of the System's plan assets at any time. Further, in any calendar year, new commitments to alternative investments shall not, in the aggregate, exceed 1.0% of the System's plan assets until the first occurrence that 4.5% of the assets have been invested, at which time there shall be no limit on the percentage of commitments that may be made in any calendar year, subject to compliance with other provisions of the statute. At June 30, 2022, the System held private equity investments of approximately $631.9 million. \nThe Master Trust invests in various mutual funds, common collective trust funds, and separate accounts, as selected by participants. Each participant is allowed to select and invest contributions into investment options that own one or more commingled funds, as authorized by the ERS Board. Participants may also contribute to a self-directed brokerage account that offers investments in various mutual funds and equities. At June 30, 2022, the deferred compensation plans held commingled funds of approximately $2.2 billion, mutual funds of approximately $7.3 million, domestic equities of approximately $25.6 million, and international equities of approximately $2.3 million. \nSubstantially all of the investments of ERS, PSERS, LRS, GJRS, GMPF, SEAD-OPEB, SBF, and SEADActive are pooled into one common investment fund. Units in the pooled common investment fund are allocated to the respective plans based upon the cost of assets contributed, and additional units are allocated to the participating plans based on the market value of the pooled common investment fund at the date of contribution. Net income of the pooled common investment fund is allocated monthly to the participating plans, based upon the number of units outstanding during the month. \n(continued) 48 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \n \nThe units and fair value of each plan's equity in the pooled common investment fund at June 30, 2022, were as follows (dollars in thousands): \n \nEmployees' Retirement System Public School Employees Retirement System Legislative Retirement System Georgia Judicial Retirement System Georgia Military Pension Fund State Employees' Assurance Department - OPEB Survivors Benefit Fund \nTotal defined benefit plans \nState Employees' Assurance Department - Active \nTotal in pooled investment funds \n \nFair value $ 13,793,518 \n1,026,546 36,112 \n515,797 34,923 \n1,334,220 191,101 \n16,932,217 \n357,357 \n$ 17,289,574 \n \nUnits 2,165,903 \n161,192 5,670 \n80,992 5,484 \n209,504 30,007 \n2,658,752 \n56,113 \n2,714,865 \n \nFair Value Measurements. The System categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the inputs used in valuation and gives the highest priority to unadjusted quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the hierarchy is based on whether the significant inputs into the valuations are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest level, Level 1, is given to unadjusted quoted prices in active markets and the lowest level, Level 3, to unobservable inputs. \nThe three levels of the fair value hierarchy are as follows: \nLevel 1  Valuations based on unadjusted quoted prices for identical instruments in active markets that the System has the ability to access. \nLevel 2  Valuations based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs are observable. \nLevel 3  Valuations based on inputs that are unobservable and significant to the overall fair value measurement. \nThe System also has investments held through limited partnerships for which fair value is estimated using the NAV reported by the general partner as a practical expedient to fair value. Such investments have not been categorized within the fair value hierarchy. \nIn instances where inputs used to measure fair value fall into different levels in the fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The System's assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each investment. The table on the next page shows the fair value leveling of the System's investments (in thousands): \n \n(continued) 49 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \nInvestments by fair value level Equities: \nDomestic International Obligations: Domestic: \nU.S. treasuries Corporate bonds International: Corporate bonds Mutual funds Commingled funds \nTotal investments by fair value level Investments measured at NAV* Private equity funds \nTotal investments \n \nFair value measures using \n \nQuoted prices in \nactive markets for \nidentical assets \n(Level 1) \n \nSignificant other \nobservable inputs \n(Level 2) \n \nSignificant unobservable \ninputs \n(Level 3) \n \nTotal \n \n$ 8,991,853 2,563,381 \n \n-- 13,690 \n \n-- 8,991,853 355 2,577,425 \n \n3,824,614 -- \n-- 7,338 91,272 \n \n-- 1,125,700 \n93,118 -- \n2,069,642 \n \n$ 15,478,458 3,302,150 \n \n-- 3,824,614 -- 1,125,699 \n \n-- \n \n93,118 \n \n-- \n \n7,338 \n \n-- 2,160,914 \n \n355 18,780,961 \n631,937 $ 19,412,898 \n \n*Certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Combining Statement of Fiduciary Net Position. \nEquity securities classified in Level 1 are valued using prices quoted in active markets for those securities. Equity securities in Level 2 are valued using prices quoted for similar instruments in active markets. Equity securities classified in Level 3, if any, are valued using third-party valuations not currently observable in the market. \nDebt securities classified in Level 1 are valued using prices quoted in active markets. Debt securities classified in Level 2 are valued using either a bid evaluation or a matrix pricing technique. Bid evaluations may include market quotations, yields, maturities, call features, and ratings. Matrix pricing is used to value securities based on the securities' relationship to benchmark quoted prices. These securities have nonproprietary information that was readily available to market participants, from multiple independent sources, which are known to be actively involved in the market. \nMutual funds and commingled funds classified in Level 1 are valued using prices quoted in active markets for those investment types. Commingled funds classified in Level 2 are valued using observable underlying inputs that are market corroborated. \nUnfunded commitments, redemption frequency, and redemption notice period relative to the System's alternative investments for which the System utilized NAV or its equivalent relative to the determination of fair value at June 30, 2022, are noted on the following page (in thousands): \n \n(continued) 50 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \n \nPrivate equity funds \n \nInvestments measured at \nNAV \n$ 631,937 \n \nUnfunded commitments \n256,355 \n \nRedemption frequency (if \ncurrently eligible) \nNot Eligible \n \nRedemption notice period \nN/A \n \nInvestments in privately held limited partnerships are valued using the NAV provided by the general partner as of March 31 of each fiscal year, adjusted by the System for cash flows through June 30. The quarterly values of the partnership investments provided from the general partner are reviewed by the System to determine if any adjustments are necessary. The types of partnership strategies held include growth equity, leveraged buyouts, and mezzanine debt. Two of the 21 partnerships held are secondary investments and are in or nearing the wind up phase of the fund. The remaining investments typically have an approximate life of 810 years. These investments are considered illiquid since the nature of these private investments prohibits redemption with the fund; instead, distributions are received from the general partner through liquidation of the underlying assets of the fund. The System currently has no plans to sell any of the investments prior to their liquidation resulting in these assets being carried at the NAV estimated by the general partner and adjusted for second quarter cash flows by the System. \nCredit Risk: Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations to the System. O.C.G.A. 47-20-84 limits investments to investment-grade securities. It is the System's investment policy to require that the bond portfolio be of high quality and chosen with respect to maturity ranges, coupon levels, refunding characteristics, and marketability. The System's policy is to require that new purchases of bonds be restricted to high-grade bonds rated no lower than \"A\" by any nationally recognized statistical rating organization. Obligations of the U.S. government or obligations explicitly guaranteed by the U.S. government are not considered to have credit risk and do not require disclosure of credit quality. The quality ratings of investments in fixed income securities as described by Standard \u0026 Poor's and by Moody's Investors Service, which are nationally recognized statistical rating organizations, at June 30, 2022, are shown in the table on the following page (in thousands): \n \n(continued) 51 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \n \nQuality ratings of fixed income investments held at June 30, 2022 \n \nInvestment type Domestic obligations: \nU.S. treasuries \n \nStandard and Poor's/ June 30, 2022 \n \nMoody's quality rating \n \nfair value \n \n$ \n \n3,824,614 \n \nCorporates \nTotal domestic corporates International obligations: \nCorporates Total international corporates Total fixed income investments \n \nAAA/Aaa AA/Aaa AA/Aa \nAA/A A/A A/Baa \nAA/A \n \n214,293 171,562 187,347 187,549 273,124 \n91,824 \n1,125,699 \n \n93,118 \n \n93,118 \n \n$ \n \n5,043,431 \n \nMutual funds, commingled funds, and various equities of the deferred compensation plans are not considered to have credit risk and do not require disclosure of credit risk rating. \nConcentration of Credit Risk: Concentration of credit risk is the risk of loss that may be attributed to the magnitude of a government's investment in a single issuer. At June 30, 2022, the System did not have debt or equity investments in any one organization, other than those issued or guaranteed by the U.S. government or its agencies, which represented greater than 5% of total investments. \nInterest Rate Risk: Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. While the System has no formal interest rate risk policy, active management of the bond portfolio incorporates interest rate risk to generate improved returns. This risk is managed within the portfolio using the effective duration method. This method is widely used in the management of fixed income portfolios and quantifies to a much greater degree the sensitivity to interest rate changes when analyzing a bond portfolio with call options, prepayment provisions, and any other cash flows. Effective duration makes assumptions regarding the most likely timing and amounts of variable cash flows and is best utilized to gauge the effect of a change in interest rates on the fair value of a portfolio. It is believed that the reporting of effective duration found in the table on the following page quantifies to the fullest extent possible the interest rate risk of the System's fixed income assets (in thousands): \n \n(continued) 52 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \n \nEffective duration of fixed income assets \n \nFixed income type \nDomestic obligations: U.S. treasuries Corporates \n \nFair value June 30, 2022 \n \nPercent of all fixed \nincome assets \n \nEffective duration (years) \n \n$ 3,824,614 1,125,699 \n \n75.8 % \n \n4.9 \n \n22.3 \n \n5.0 \n \nInternational obligations: Corporates Total \n \n93,118 $ 5,043,431 \n \n1.9 \n \n4.3 \n \n100.0 % \n \n4.9 \n \nForeign Currency Risk: Foreign currency risk is the risk that changes in exchange rates will adversely impact the fair value of an investment. The System's currency risk exposures, or exchange rate risks, primarily reside within the System's international equity investment holdings. The System's asset allocation and investment policies allow for active and passive investments in international securities. The System's Boardadopted foreign exchange risk management policy is to minimize risk and protect the investments from negative impact by hedging foreign currency exposures with foreign exchange instruments when market conditions and circumstances are deemed appropriate. Foreign exchange instruments are used to protect the value of noncash investments from currency movements. The System's foreign exchange risk management policy does not quantify limitations on foreign currency-denominated investments. As of June 30, 2022, the System's exposure to foreign currency risk in U.S. Dollars, excluding the 401(k) and 457 plans, is highlighted in the table on the following page (in thousands): \n \n(continued) 53 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \n \nInternational investment securities at fair value as of June 30, 2022 \n \nCurrency \nAustralian Dollar Brazilian Real British Pound Sterling Canadian Dollar Chilean Peso Chinese Renminbi Yuan Colombian Peso Czech Koruna Danish Krone Euro Hong Kong Dollar Hungarian Forint Indian Rupee Indonesian Rupiah Israeli Shekel Japanese Yen Malaysian Ringgit Mexican Peso New Taiwan Dollar New Zealand Dollar Norwegian Krone Philippine Peso Polish Zloty Qatari Riyal Singapore Dollar South African Rand South Korean Won Swedish Krona Swiss Franc Thai Baht UAE Dirham \n \nCash/cash equivalents \n \n$ \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n158 \n \n-- \n \n33 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n1 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \nEquities \n43,778 16,203 108,377 34,787 \n2,455 5,933 \n773 1,532 13,790 274,194 235,264 1,074 71,261 5,232 3,064 184,233 9,052 7,200 39,276 \n737 2,288 3,295 3,331 3,483 19,966 12,965 63,719 39,578 37,609 13,690 9,576 \n \nFixed income \n-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- \n \nTotal holdings subject to foreign currency risk \n \n192 \n \n1,267,715 \n \n-- \n \nInvestment securities payable in U.S. dollars \n \n-- \n \n1,307,439 \n \n93,118 \n \nTotal international investment securities - at fair value $ \n \n192 \n \n2,575,154 \n \n93,118 \n \nTotal \n43,778 16,203 108,377 34,787 \n2,455 5,933 \n773 1,532 13,790 274,194 235,422 1,074 71,294 5,232 3,064 184,233 9,052 7,200 39,276 \n737 2,288 3,296 3,331 3,483 19,966 12,965 63,719 39,578 37,609 13,690 9,576 \n1,267,907 \n1,400,557 \n2,668,464 \n \n(continued) 54 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \n \n(5) Securities Lending Program \n \nState statutes and ERS Board policies permit the System to lend its securities to broker/dealers with a simultaneous agreement to return the collateral for the same securities in the future. The System is presently involved in securities lending programs or repurchase and reverse repurchase agreements that act as securities lending programs with major brokerage firms. The System lends equity and fixed income securities for varying terms and receives a fee based on the loaned securities' value. The System reports the net loan fee income earned as investment income on the Combining Statement of Changes in Fiduciary Net Position. During a loan, the System continues to receive dividends and interest as the owner of the loaned securities. The brokerage firms pledge collateral securities consisting of U.S. government and agency securities, mortgage-backed securities issued by a U.S. government agency, corporate bonds, and equities. The collateral value must be equal to at least 102% to 109% of the loaned securities' value, depending on the type of collateral security. \nSecurities loaned totaled approximately $2.3 billion at fair value at June 30, 2022. The collateral value was equal to 103.2% of the loaned securities' value at June 30, 2022. The System's lending collateral was held in the System's name by the tri-party custodian. \nLoaned securities are included in the accompanying Combining Statement of Fiduciary Net Position since the System maintains ownership. The related collateral securities are not recorded as assets on the System's Combining Statement of Fiduciary Net Position, and a corresponding liability is not recorded, since the System is deemed not to have the ability to pledge or trade the collateral securities. In accordance with the criteria set forth in GASB Statement No. 28, Accounting and Financial Reporting for Securities Lending Transactions, the System is deemed not to have the ability to pledge or sell the collateral securities, since the System's lending contracts do not address whether the lender can pledge or sell the collateral securities without a borrower default, the System has not previously demonstrated that ability, and there are no indications of the System's ability to pledge or sell the collateral securities. \n(6) Capital Assets \nThe following is a summary of capital assets and depreciation information as of and for the year ended June 30, 2022 (dollars in thousands): \n \nCapital assets: Land Building Equipment Computer software \nAccumulated depreciation for: Building Equipment Computer software \nCapital assets, net \n \nBalance at June 30, 2021 \n \nAdditions \n \nDisposals \n \nBalance at June 30, 2022 \n \n$ \n \n4,350 \n \n12 \n \n238 \n \n4,124 \n \n2,800 \n \n-- \n \n-- \n \n2,800 \n \n2,085 \n \n401 \n \n-- \n \n2,486 \n \n14,345 \n \n-- \n \n-- \n \n14,345 \n \n23,580 \n \n413 \n \n238 \n \n23,755 \n \n(1,190) (1,657) (14,345) (17,192) \n \n$ \n \n6,388 \n \n(70) (180) \n-- (250) \n163 \n \n-- \n \n(1,260) \n \n-- \n \n(1,837) \n \n-- \n \n(14,345) \n \n-- \n \n(17,442) \n \n238 \n \n6,313 \n \n(continued) 55 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \n \n(7) Commitments \n \nAs of June 30, 2022, the System had committed to fund certain private equity partnerships for a total capital commitment of approximately $775.8 million. Of this amount, approximately $256.4 million remained unfunded and is not recorded on the System's Combining Statement of Fiduciary Net Position. \n(8) Net Pension Liability (Asset) of Employers and Nonemployer - ERS, PSERS, LRS, GJRS, GMPF \nThe components of the net pension liability (asset) of the participating employers and nonemployer at June 30, 2022 were as follows (dollars in thousands): \n \nTotal pension liability Plan fiduciary net position \n \nERS $ 20,508,975 \n13,830,510 \n \nPSERS $ 1,263,626 \n1,026,232 \n \nLRS $ 26,697 \n36,031 \n \nGJRS $ 504,908 \n516,554 \n \nGMPF $ 57,458 \n34,888 \n \nEmployers' and nonemployer net pension liability (asset) $ 6,678,465 $ 237,394 $(9,334) $(11,646) $22,570 \n \nPlan fiduciary net position as a percentage of the total pension liability \n \n67.44 % \n \n81.21 % 134.96 % 102.31 % 60.72 % \n \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2021, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases \nInvestment rate of return \nCost-of-living adjustment \n \nERS \n2.5% \n3.00 - 6.75%, including inflation \n7.00%, net of pension plan investment expense, including inflation \n1.05% annually \n \nPSERS \n2.5% n/a \n7.00%, net of pension plan investment expense, including inflation \n1.5% semiannually \n \nLRS \n2.5% n/a \n7.00%, net of pension plan investment expense, including inflation \n1.5% semiannually \n \nGJRS \n2.5% \n3.75%, including inflation \n7.00%, net of pension plan investment expense, including inflation \nN/A \n \nGMPF 2.5% n/a \n7.00%, net of pension plan investment expense, including inflation N/A \n \nMortality rates are as follows:  The Pub-2010 General Employee Table, with no adjustments, projected generationally with the MP-2019 scale is used for both males and females while in active service.  The Pub-2010 Family of Tables projected generationally with the MP-2019 Scale and with further adjustments are used for post-retirement mortality assumptions as on the following tables: \n \nERS, LRS, GJRS, \u0026 GMPF*: \n \nParticipant Type \n \nMembership Table \n \nService Retirees \n \nGeneral Healthy Annuitant \n \nDisability Retirees \n \nGeneral Disabled \n \nBeneficiaries \n \nGeneral Contingent Survivors \n \nSet Forward (+)/ Setback (-) Male: +1; Female: +1 Male: -3; Female: 0 Male: +2; Female: +2 \n \nAdjustment To Rates Male: 105%; Female: 108% Male: 103%; Female: 106% Male: 106%; Female: 105% \n \n*Only Service Retiree Participant Type applies to GMPF 56 \n \n(continued) \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \n \nPSERS: \nParticipant Type \nService Retirees \n \nMembership Table \nGeneral Healthy Below-Median Annuitant \n \nDisability Retirees \n \nGeneral Disabled \n \nBeneficiaries \n \nGeneral Below-Median Contingent Survivors \n \nSet Forward (+)/ Setback (-) Male: +2; Female: +2 Male: -3; Female: 0 Male: +2; Female: +2 \n \nAdjustment To Rates Male: 101%; Female: 103% Male: 103%; Female: 106% Male: 104%; Female: 99% \n \nThe actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period July 1, 2014  June 30, 2019. In the experience study, the long-term assumed investment rate of return of 7.00% and the assumed annual rate of inflation of 2.50% were recommended by the actuary and adopted by the Board. \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. \nThe target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class Fixed income Domestic large equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n \nTarget allocation 30.00 % 46.30 1.20 12.30 5.20 5.00 \n100.00 % \n \nLong-term expected real rate of return* 0.20 % 9.40 \n13.40 9.40 \n11.40 10.50 \n \n* Rates shown are net of inflation \n \nDiscount rate: The discount rate used to measure the total pension liability was 7.00% for all defined benefit pension plans. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \n(continued) 57 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \nSensitivity of the net pension liability (asset) to changes in the discount rate: The following presents the net pension liability (asset), calculated using the discount rate of 7.00%, as well as what the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.00%) or 1percentage-point higher (8.00%) than the current rate (dollars in thousands): \n \nEmployers' and nonemployer net pension liability (asset) \nEmployees' Retirement System Public School Employment Retirement System Legislative Retirement System Georgia Judicial Retirement System Georgia Military Pension Fund \n \nCurrent \n \n1% Decrease discount rate 1% Increase \n \n(6.00%) \n \n(7.00%) \n \n(8.00%) \n \n8,890,273 383,919 (6,652) 36,971 30,840 \n \n6,678,465 237,394 (9,334) (11,646) 22,570 \n \n4,818,505 115,123 (11,600) (53,594) 15,912 \n \nActuarial valuation date: June 30, 2021 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2022 using standard roll-forward techniques. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n(9) Net OPEB Asset of Employers - SEAD-OPEB \n \nThe components of the net OPEB asset of the participating employers at June 30, 2022 were as follows (dollars in thousands): \n \nTotal OPEB liability Plan fiduciary net position \nEmployers' net OPEB asset Plan fiduciary net position as a percentage of the total OPEB liability \n \n$ \n \n966,698 \n \n1,334,285 \n \n$ \n \n(367,587) \n \n138.03 % \n \nActuarial assumptions: The total OPEB liability was determined by an actuarial valuation as of June 30, 2021, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases: \nERS GJRS LRS Investment rate of return Healthcare cost trend rate \n \n2.5% \n3.00% - 6.75%, including inflation 3.75%, including inflation n/a 7.00%, net of OPEB plan investment expense, including inflation n/a \n \nMortality rates are as follows:  The Pub-2010 General Employee Table, with no adjustments, projected generationally with the MP-2019 scale is used for both males and females while in active service.  The Pub-2010 Family of Tables projected generationally with the MP-2019 Scale and with further adjustments are used for post-retirement mortality assumptions as noted on the following page: \n \n(continued) 58 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \n \nParticipant Type Service Retirees Disability Retirees \nBeneficiaries \n \nMembership Table General Healthy Annuitant \nGeneral Disabled \nGeneral Contingent Survivors \n \nSet Forward (+)/ Setback (-) \n \nAdjustment To Rates \n \nMale: +1; Female: +1 Male: 105%; Female: 108% \n \nMale: -3; Female: 0 Male: 103%; Female: 106% \n \nMale: +2; Female: +2 Male: 106%; Female: 105% \n \nThe actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period July 1, 2014  June 30, 2019. In the experience study, the long-term assumed investment rate of return of 7.00% and the assumed annual rate of inflation of 2.50% were recommended by the actuary and adopted by the Board. \nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. \nThe target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class Fixed income Domestic large equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n* Rates shown are net of inflation. \n \nTarget allocation 30.00 % 46.30 1.20 12.30 5.20 5.00 \n100.00 % \n \nLong-term expected real rate of return* 0.20 % 9.40 \n13.40 9.40 \n11.40 10.50 \n \nDiscount rate: The discount rate used to measure the total OPEB liability was 7.00%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. \n \nSensitivity of the net OPEB asset to changes in the discount rate: The table on the following page presents the net OPEB asset, calculated using the discount rate of 7.00%, as well as what the net OPEB asset would be if it were calculated using a discount rate that is 1-percentage-point lower (6.00%) or 1-percentage-point higher (8.00%) than the current rate (dollars in thousands): \n \n(continued) 59 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \nEmployers' net OPEB asset \n \n1% Decrease (6.00%) \n$(237,270) \n \nCurrent discount \nrate (7.00%) \n(367,587) \n \n1% Increase (8.00%) \n(474,309) \n \nActuarial valuation date: June 30, 2021 is the actuarial valuation date upon which the total OPEB liability is based. An expected total OPEB liability is determined as of June 30, 2022 using standard roll-forward techniques for the actual total OPEB liability. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n(10) System Employees' Other Postemployment Benefits (OPEB) \nCertain of the System's employees are members of the SEAD-OPEB and the Georgia State Employees Postretirement Benefit Fund. The notes to the financial statements that follow and required supplementary information on pages 78 and 79 are presented from the perspective of the System as an employer. \nGeneral Information about SEAD-OPEB \nPlan description: SEAD-OPEB was created in 2007 by the Georgia General Assembly to amend Title 47 of the O.C.G.A., relating to retirement, so as to establish a fund for the provision of term life insurance to retired and vested inactive members of ERS, LRS, and GJRS. The plan is a cost-sharing multiple-employer defined benefit other postemployment benefit plan as defined in GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. The SEAD-OPEB trust fund accumulates the premiums received from the aforementioned retirement plans, including interest earned on deposits and investments of such payments. \nBenefits provided: The amount of insurance for a retiree with creditable service prior to April 1, 1964 is the full amount of insurance in effect on the date of retirement. The amount of insurance for a service retiree with no creditable service prior to April 1, 1964 is 70% of the amount of insurance in effect at age 60 or at termination, if earlier. Life insurance proceeds are paid in a lump sum to the beneficiary upon death of the retiree. \nContributions: Georgia law provides that employee contributions to the plan shall be in an amount established by the SEAD Board not to exceed one-half of 1% of the member's earnable compensation. There were no employer contributions required for the fiscal year ended June 30, 2022. \nOPEB Asset, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows off Resources Related to OPEB SEAD-OPEB \nAt June 30, 2022, the System reported an asset of $1,426.3 thousand for its proportionate share of the net OPEB asset. The net OPEB asset was measured as of June 30, 2021. The total OPEB liability used to calculate the net OPEB asset was based on an actuarial valuation as of June 30, 2020. An expected total OPEB liability as of June 30, 2021 was determined using standard roll-forward techniques. The System's proportionate share of the net OPEB asset was based on actual member salaries reported to the SEAD-OPEB plan during the fiscal year ended June 30, 2021. At June 30, 2021, the employer's proportionate share was 0.231607%, which was an increase of 0.019784% from its proportionate share measured as of June 30, 2020. For the year ended June 30, 2022, the System recognized a reduction of OPEB expense of $277.8 thousand. \nActuarial assumptions: The total SEAD-OPEB liability as of June 30, 2021 was determined by an actuarial valuation as of June 30, 2020 using the actuarial assumptions on the following page, applied to all periods included in the measurement: \n(continued) 60 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \n \nInflation Salary increase Investment rate of return Healthcare cost trend rate \n \n2.5% 3.00 - 6.75%, including inflation 7.00%, net of OPEB plan investment expense, including inflation n/a \n \nMortality rates are as follows:  The Pub-2010 General Employee Table, with no adjustments, projected generationally with the MP-2019 scale is used for both males and females while in active service.  The Pub-2010 Family of Tables projected generationally with the MP-2019 Scale and with further adjustments are used for post-retirement mortality assumptions as follows: \n \nParticipant Type Service Retirees Disability Retirees \nBeneficiaries \n \nMembership Table General Healthy Annuitant \nGeneral Disabled \nGeneral Contingent Survivors \n \nSet Forward (+)/ Setback (-) \n \nAdjustment To Rates \n \nMale: +1; Female: +1 Male: 105%; Female: 108% \n \nMale: -3; Female: 0 Male: 103%; Female: 106% \n \nMale: +2; Female: +2 Male: 106%; Female: 105% \n \nThe actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period July 1, 2014  June 30, 2019. \n \nThe long-term expected rate of return on SEAD-OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of plan investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. \n \nThe target asset allocation and estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class \nFixed income Domestic large equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n \nTarget allocation \n30.00 % 46.40 \n1.10 11.70 \n5.80 5.00 \n100.00 % \n \nLong-term expected real rate of return* \n(1.50) % 9.20 13.40 9.20 10.40 10.60 \n \n* Rates shown are net of inflation. \nDiscount rate: The discount rate used to measure the total SEAD-OPEB liability was 7.00%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the SEADOPEB plan's fiduciary net position was projected to be available to make all projected future benefit payments of \n(continued) 61 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \ncurrent plan members. Therefore, the long-term expected rate of return on SEAD-OPEB plan investments was applied to all periods of projected benefit payments to determine the total SEAD-OPEB liability. \nSensitivity of the System's proportionate share of the net SEAD-OPEB asset to changes in the discount rate: The following presents the System's proportionate share of the net SEAD-OPEB asset calculated using the discount rate of 7.00%, as well as what the System's proportionate share of the net SEAD-OPEB asset would be if it were calculated using a discount rate that is 1-percentage-point lower (6.00%) or 1-percentage-point higher (8.00%) than the current rate (dollars in thousands): \n \nSystem's proportionate share of the net OPEB asset \n \n1% Decrease (6.00%) \n$(1,122) \n \nCurrent discount \nrate (7.00%) \n(1,426) \n \n1% Increase (8.00%) \n(1,675) \n \nSEAD-OPEB plan fiduciary net position: Detailed information about the SEAD-OPEB plan's fiduciary net position is available in the Annual Comprehensive Financial Report which is publicly available at https:// www.ers.ga.gov/post/annual-financial-reports. \nGeneral Information about the Georgia State Employees Postemployment Benefit Fund (State OPEB Fund) \nPlan description: Employees of State of Georgia (State) organizations as defined in 45-18-25 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the State OPEB Fund - a cost-sharing multipleemployer defined benefit postemployment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 45 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \nBenefits provided: The State OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for employees of State organizations (including technical colleges) and other entities authorized by law to contract with the Department of Community Health (DCH) for inclusion in the plan. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from ERS, LRS, GJRS, Teachers Retirement System (TRS) or PSERS. If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare-eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The State OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the State OPEB Fund is permitted. \nContributions: As established by the DCH Board of Trustees, the State OPEB Fund is funded on a pay-as-you-go basis, with additional contributions by the State as available and deemed necessary; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the State OPEB Fund from the System were $283.6 thousand for the year ended June 30, 2022. Active employees are not required to contribute to the State OPEB Fund. \nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to State OPEB Fund \nAt June 30, 2022, the System reported a liability of approximately $544.8 thousand for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2021. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2020. An expected total OPEB liability as of June 30, 2021 was determined using standard roll-forward techniques. The System's proportionate \n(continued) 62 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \nshare of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2021. At June 30, 2021, the System's proportionate share was 0.198205%, which was a increase of 0.006650% from its proportionate share measured as of June 30, 2020. For the year ended June 30, 2022, the System recognized a reduction in OPEB expense of $1,169.5 thousand. \n \nActuarial assumptions: The total OPEB liability as of June 30, 2021 was determined by an actuarial valuation as of June 30, 2020 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2021: \n \nInflation Salary increase Investment rate of return \nHealthcare trend rate: Pre-Medicare Eligible Medicare Eligible \nUltimate trend rate: Pre-Medicare Eligible Medicare Eligible \nYear of Ultimate trend rate Pre-Medicare Eligible Medicare Eligible \n \n2.5% 3.00 - 6.75%, including inflation 7.00%, compounded annually, net of OPEB plan investment expense, including inflation \n6.75% 5.13% \n4.50% 4.50% \n2029 2023 \n \nMortality rates were based on the Pub-2010 General Employee Mortality Table for Males or Females, as appropriate, with no adjustments and with the MP-2019 Projection scale applied generationally as follows: \nFor ERS, JRS and LRS members: Post-retirement mortality rates for service retirements were based on the Pub-2010 General Healthy Annuitant Mortality Table (ages set forward one year and adjusted 105% for males and 108% for females) with the MP-2019 Projection scale applied generationally. Post-retirement mortality rates for disability retirements were based on the Pub-2010 General Disabled Mortality Table (ages set back three years for males and adjusted 103% for males and 106% for females) with the MP-2019 Projection scale applied generationally. Post-retirement mortality rates for beneficiaries were based on the Pub-2010 General Contingent Survivor Mortality Table (ages set forward two years and adjusted 106% for males and 108% for females) with the MP-2019 Projection scale applied generationally. \n \nThe actuarial assumptions used in the June 30, 2020 valuation were based on the results of the most recent actuarial experience studies for the pension systems, which covered the five-year period ending June 30, 2019, and was adopted by the ERS Board on December 17, 2020. \n \nThe remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2020 valuation were based on a review of recent plan experience done concurrently with the June 30, 2020 valuation. \nProjection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation. \nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges \n(continued) 63 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \nare combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nFixed income Equities \nTotal \n \nAsset class \n \n* Rates shown are net of inflation. \n \nTarget allocation 30.00 % 70.00 \n100.00 % \n \nLong-term expected real rate of return* \n0.14 % 9.20 \n \nDiscount rate: The discount rate used to measure the total State OPEB liability was 7.00%, as compared with last year's discount rate of 7.06%. The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Based on those assumptions, the State OPEB fund's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on State OPEB plan investments was applied to all periods of projected benefit payments to determine the total State OPEB liability. \n \nSensitivity of the System's proportionate share of the net State OPEB liability to changes in the discount rate: The following presents the System's proportionate share of the net OPEB liability calculated using the discount rate of 7.00%, as well as what the System's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.00%) or 1-percentage-point higher (8.00%) than the current discount rate (dollars in thousands): \n \nSystem's proportionate share of the net OPEB liability \n \n1% Decrease (6.00%) \n$959 \n \nCurrent discount \nrate (7.00%) \n545 \n \n1% Increase (8.00%) \n187 \n \nSensitivity of the System's proportionate share of the net State OPEB liability to changes in the healthcare cost trend rates: The following presents the System's proportionate share of the net OPEB liability, as well as what the System's proportionate share of the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates (dollars in thousands): \n \nSystem's proportionate share of the net OPEB liability \n \n1% Decrease \n$127 \n \nCurrent healthcare cost trend \nrate \n545 \n \n1% Increase \n1,034 \n \nState OPEB plan fiduciary net position: Detailed information about the State OPEB Benefit plan's fiduciary net position is available in the Annual Comprehensive Financial Report, which is publicly available at https:// sao.georgia.gov/swar/acfr. \n \n(continued) 64 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \nDeferred Outflows of Resources and Deferred Inflows of Resources for SEAD-OPEB and State OPEB Fund \nAt June 30, 2022, the System reported deferred outflows of resources and deferred inflows of resources related to SEAD-OPEB and the State OPEB Fund from the following sources (dollars in thousands): \n \nDeferred outflows of resources: \nChange of assumptions \nNet difference between projected and actual earnings on plan investments \nChange in proportion and differences between the System's contributions and proportionate share of contributions \nSystem's contributions subsequent to the measurement date \nTotal deferred outflows of resources \n \nSEAD-OPEB State OPEB \n \nplan \n \nfund \n \n$ -- \n \n28 \n \n-- \n \n-- \n \n-- \n \n229 \n \n-- \n \n284 \n \n$ \n \n-- \n \n541 \n \nTotal 28 -- \n229 284 541 \n \nDeferred inflows of resources: Difference between expected and actual experience Change of assumptions Net difference between projected and actual earnings \non plan investments Change in proportion and differences between the \nSystem's contributions and proportionate share of contributions \nTotal deferred inflows of resources \n \nSEAD-OPEB State OPEB \n \nplan \n \nfund \n \n$ \n \n4 \n \n44 \n \n476 \n \n1,467 574 \n95 \n \n33 $ 558 \n \n15 2,151 \n \nTotal \n1,471 619 571 \n47 2,709 \n \nSEAD-OPEB amounts reported as deferred outflows of resources and deferred inflows of resources related to SEAD-OPEB will be recognized in OPEB expense as noted as follows (dollars in thousands): \n \nYear ended June 30: 2023 2024 2025 2026 \n \n($196) (120) (116) (126) \n \n(continued) 65 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2022 \nState OPEB Fund employer contributions subsequent to the measurement date of $283.6 thousand are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to State OPEB Fund will be recognized in OPEB expense as follows (dollars in thousands): \n \nYear ended June 30: 2023 2024 2025 2026 \n \n($945) (485) (323) (141) \n \n66 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) \nSchedules of Employers' and Nonemployer Contributions - Defined Benefit Plans Year ended June 30, 2022 (In thousands) \n \nEmployees' Retirement System \nPublic School Employees Retirement System1 \nLegislative Retirement System2 \n \nYear ended \n6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 \n6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 \n6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 \n \nActuarially determined contribution \n(a) \n \n$ \n \n358,376 \n \n428,982 \n \n517,220 \n \n595,124 \n \n624,623 \n \n650,073 \n \n649,209 \n \n643,857 \n \n615,967 \n \n619,723 \n \n24,829 27,160 28,461 28,580 26,277 29,276 30,263 32,496 30,264 32,491 \n \n-- -- -- -- -- -- -- -- -- -- \n \nContributions in relation to the actuarially determined contribution \n(b) \n358,992 429,752 518,163 595,566 625,281 652,167 649,209 643,857 615,967 619,723 \n24,829 27,160 28,461 28,580 26,277 29,276 30,263 32,496 30,264 32,491 \n128 45 -- -- -- -- -- -- -- -- \n \nContribution deficiency (excess) (a-b) \n(616) (770) (943) (442) (658) (2,094) \n-- -- -- -- \n-- -- -- -- -- -- -- -- -- -- \n(128) (45) -- -- -- -- -- -- -- -- \n \nCovered payroll \n(c) \n2,335,773 2,335,773 2,353,225 2,390,457 2,565,918 2,635,896 2,615,491 2,614,856 2,480,422 2,577,449 \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n3,867 3,850 3,764 3,875 3,830 3,844 3,833 3,798 3,371 4,024 \n \nContributions as a \npercentage of covered \npayroll (b/c) \n15.4 % 18.4 22.0 24.9 24.4 24.7 24.8 24.6 24.8 24.0 \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n3.3 1.2 n/a n/a n/a n/a n/a n/a n/a n/a \n \n(continued) 67 \n \n Financial Section \n \nRequired Supplementary Information (UNAUDITED) \n \nSchedules of Employers' and Nonemployer Contributions - Defined Benefit Plans Year ended June 30, 2022 (In thousands) \n \nGeorgia Judicial Retirement System \nGeorgia Military Pension Fund3 \nState Employees' Assurance Department Retired and Vested Inactive Members Trust Fund \n \nYear ended \n6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 \n6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 \n6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 \n \nActuarially determined contribution \n(a) \n \n$ \n \n2,279 \n \n2,375 \n \n4,261 \n \n7,623 \n \n6,684 \n \n6,566 \n \n5,254 \n \n6,464 \n \n6,070 \n \n9,962 \n \n1,703 1,892 1,893 1,990 2,018 2,377 2,537 2,611 2,684 2,697 \n \n5,009 -- -- -- -- -- -- -- -- -- \n \nContributions in relation to the actuarially determined contribution \n(b) \n2,279 2,375 4,261 7,623 6,684 6,566 5,254 6,464 6,070 9,962 \n1,703 1,892 1,893 1,990 2,018 2,377 2,537 2,611 2,684 2,697 \n5,009 -- -- -- -- -- -- -- -- -- \n \nContribution deficiency (excess) (a-b) \n-- -- -- -- -- -- -- -- -- -- \n-- -- -- -- -- -- -- -- -- -- \n-- -- -- -- -- -- -- -- -- -- \n \nCovered payroll \n(c) \n52,807 54,787 54,272 57,401 59,695 60,572 60,532 63,835 63,421 62,426 \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n1,855,185 n/a n/a n/a n/a n/a n/a n/a n/a n/a \n \nContributions as a \npercentage of covered \npayroll (b/c) \n4.3 % 4.3 7.9 13.3 11.2 10.8 8.7 10.1 9.6 16.0 \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n0.3 n/a n/a n/a n/a n/a n/a n/a n/a n/a \n \nThis data, except for annual covered payroll, was provided by the System's actuary. \n1 No statistics regarding covered payroll are available. Contributions are not based upon members' salaries but are simply $4.00 per member, per month, for nine months, each fiscal year if hired prior to July 1, 2012 and $10 per month, per member, for nine months, if hired after July 1,2012. 2 The Georgia General Assembly made contributions in some years that were not required. 3 No statistics regarding covered payroll are available. Active and inactive plan member information is maintained by the Georgia Department of Defense. \nSee accompanying notes to required supplementary schedules and accompanying independent auditors' report. \n \n68 \n \n Financial Section \n \nRequired Supplementary Information (UNAUDITED) \n \nSchedules of Employers' and Nonemployer Net Pension/OPEB Liability (Asset) and Related Ratios  Defined Benefit Plans June 30, 2022 (In thousands) \n \nJune 30, June 30, June 30, June 30, June 30, June 30, June 30, June 30, June 30, \n \n2022 \n \n2021 \n \n2020 \n \n2019 \n \n2018 \n \n2017 \n \n2016 \n \n2015 \n \n2014 \n \nEmployees' Retirement System: Total pension liability Plan fiduciary net position \n \n$ 20,508,975 13,830,510 \n \n18,886,809 16,547,905 \n \n17,717,243 13,502,286 \n \n17,744,003 13,617,472 \n \n17,628,219 13,517,186 \n \n17,159,634 13,098,299 \n \n17,103,987 12,373,567 \n \n17,019,362 12,967,964 \n \n17,042,149 13,291,531 \n \nEmployers' and nonemployer net pension liability \n \n$ 6,678,465 2,338,904 4,214,957 4,126,531 4,111,033 4,061,335 4,730,420 4,051,398 \n \n3,750,618 \n \nPlan fiduciary net position as a percentage of the total pension liability Covered payroll \nEmployers' and nonemployer net pension liability as a percentage of covered payroll \n \n67.44 % $ 2,577,449 \n259.11 % \n \n87.62 % 2,480,422 \n94.29 % \n \n76.21 % 2,614,856 \n161.19 % \n \n76.74 % 2,615,491 \n157.77 % \n \n76.68 % 2,635,896 \n155.96 % \n \n76.33 % 2,565,918 \n158.28 % \n \n72.34 % 2,390,457 \n197.89 % \n \n76.20 % 2,353,225 \n172.16 % \n \n77.99 % 2,335,773 \n160.57 % \n \nPublic School Employees Retirement System: Total pension liability Plan fiduciary net position \n \n$ 1,263,626 1,026,232 \n \n1,224,416 1,199,970 \n \n1,134,724 958,248 \n \n1,107,495 941,587 \n \n1,072,165 914,138 \n \n1,013,163 868,134 \n \nEmployers' and nonemployer net pension liability \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability Covered payroll \nEmployers' and nonemployer net pension liability as a percentage of covered payroll \n \n237,394 81.21 % n/a \nn/a \n \n24,446 98.00 % n/a \nn/a \n \n176,476 84.45 % n/a \nn/a \n \n165,908 85.02 % n/a \nn/a \n \n158,027 85.26 % n/a \nn/a \n \n145,029 85.69 % n/a \nn/a \n \n992,292 803,775 188,517 \n81.00 % n/a \nn/a \n \n946,200 823,150 123,050 \n87.00 % n/a \nn/a \n \n930,745 821,733 109,012 \n88.29 % n/a \nn/a \n \nLegislative Retirement System: \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployer's net pension asset \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability Covered payroll \nEmployer's net pension asset as a percentage of covered payroll \n \n26,697 36,031 (9,334) 134.96 % \n4,024 \n(231.96)% \n \n26,695 42,713 (16,018) 160.00 % \n3,371 \n(475.17)% \n \n26,081 34,568 (8,487) 132.54 % \n3,798 \n(223.46)% \n \n26,166 34,540 (8,374) 132.00 % \nn/a \nn/a \n \n26,304 34,189 (7,885) 129.98 % \nn/a \nn/a \n \n25,898 32,981 (7,083) 127.35 % \nn/a \nn/a \n \n26,142 30,975 (4,833) 118.49 % \nn/a \nn/a \n \n25,271 32,359 (7,088) 128.05 % \nn/a \nn/a \n \n25,216 32,794 (7,578) 130.05 % \nn/a \nn/a \n \nGeorgia Judicial Retirement System: Total pension liability Plan fiduciary net position \n \n$ 504,908 516,554 \n \nEmployers' and nonemployer net pension asset \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \nCovered payroll \n \n$ \n \nEmployers' and nonemployer net pension asset as a percentage of covered payroll \n \n(11,646) 102.31 % 62,426 \n(18.66)% \n \n485,387 605,426 (120,039) \n124.73 % 63,421 \n(189.27)% \n \n455,656 485,930 (30,274) \n106.64 % 63,835 \n(47.43)% \n \n440,041 479,372 (39,331) \n108.94 % 60,532 \n(64.98)% \n \n428,624 466,657 (38,033) \n108.87 % 60,572 \n(62.79)% \n \n394,736 441,182 (46,446) \n111.77 % 59,695 \n(77.81)% \n \n368,669 403,011 (34,342) \n109.32 % 57,401 \n(59.83)% \n \n357,081 404,852 (47,771) \n113.38 % 54,272 \n(88.02)% \n \n350,443 400,790 (50,347) \n114.37 % 54,787 \n(91.90)% \n \n69 \n \n(continued) \n \n Financial Section \n \nRequired Supplementary Information (UNAUDITED) \n \nSchedules of Employers' and Nonemployer Net Pension/OPEB Liability (Asset) and Related Ratios  Defined Benefit Plans June 30, 2022 (In thousands) \n \nJune 30, June 30, June 30, June 30, June 30, June 30, June 30, June 30, June 30, \n \n2022 \n \n2021 \n \n2020 \n \n2019 \n \n2018 \n \n2017 \n \n2016 \n \n2015 \n \n2014 \n \nGeorgia Military Pension Fund: Total pension liability Plan fiduciary net position \nEmployers' net pension liability \nPlan fiduciary net position as a percentage of the total pension liability Covered payroll Employers' net pension liability as a percentage of \ncovered payroll \n \n$ 57,458 34,888 \n$ 22,570 60.72 % n/a \nn/a \n \n54,739 38,677 16,062 \n70.66 % n/a \nn/a \n \n47,883 28,967 18,916 \n60.50 % n/a \nn/a \n \n45,639 26,417 19,222 \n57.88 % n/a \nn/a \n \n43,204 23,653 19,551 \n54.75 % n/a \nn/a \n \n40,085 20,711 19,374 \n51.67 % n/a \nn/a \n \n36,950 17,717 19,233 \n47.95 % n/a \nn/a \n \n33,343 16,712 16,631 \n50.12 % n/a \nn/a \n \n31,511 15,251 16,260 \n48.40 % n/a \nn/a \n \nState Employees' Assurance Department - Retired and Vested Inactive Members Trust Fund: \nTotal OPEB liability Plan fiduciary net position \nEmployer's net OPEB asset \nPlan fiduciary net position as a percentage of the total OPEB liability Covered payroll \nEmployers' net OPEB asset as a percentage of covered payroll \n \n$ 966,698 1,334,285 \n \n950,995 1,566,821 \n \n972,700 1,256,718 \n \n951,091 1,233,856 \n \n918,816 1,189,462 \n \n861,346 1,121,251 \n \n$ (367,587) \n \n(615,826) \n \n(284,018) \n \n(282,765) \n \n(270,646) \n \n(259,905) \n \n138.03 % \n \n164.76 % \n \n129.20 % \n \n129.73 % \n \n129.46 % \n \n130.17 % \n \n$ 982,303 1,030,717 1,135,433 1,211,274 1,328,485 1,383,860 \n \n(37.42)% \n \n(59.75)% \n \n(25.01)% \n \n(23.34)% \n \n(20.37)% \n \n(18.78)% \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n-- -- -- -- % -- \n-- % \n \n-- -- -- -- % -- \n-- % \n \n-- -- -- -- % -- \n-- % \n \n70 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) Schedules of Changes in Employers' and Nonemployer Net Pension/OPEB Liability (Asset)  Defined Benefit Plans \nJune 30, 2022 (In thousands) \n \nJune 30, 2022 \n \nJune 30, 2021 \n \nJune 30, 2020 \n \nJune 30, 2019 \n \nJune 30, 2018 \n \nJune 30, 2017 \n \nJune 30, 2016 \n \nJune 30, 2015 \n \nJune 30, 2014 \n \nEmployee's Retirement System: \n \nTotal pension liability: \n \nService cost \n \n$ \n \nInterest \n \nBenefit changes \n \nDifferences between expected and actual experience \n \nChanges of assumptions \n \nBenefit payments \n \nRefunds of contributions \n \n142,949 1,269,224 \n67,351 (107,167) 1,759,895 (1,502,904) \n(7,182) \n \nNet change in total pension liability Total pension liability-beginning \n \n1,622,166 18,886,809 \n \nTotal pension liability-end (a) \n \n20,508,975 \n \nPlan fiduciary net position: Contributions-employer Contributions-nonemployer Contributions-member Administrative expense allotment Net investment income (loss) Benefit payments Administrative expense Refunds of contributions Other1 \n \n611,410 8,313 \n36,130 10 \n(1,855,595) (1,502,904) \n(7,577) (7,182) \n-- \n \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \n \n(2,717,395) 16,547,905 \n \nPlan fiduciary net position-end (b) \n \n13,830,510 \n \nNet pension liability-end (a)-(b) \n \n$ 6,678,465 \n \n129,500 1,240,748 \n-- 86,061 1,154,636 (1,434,775) (6,604) \n1,169,566 17,717,243 \n18,886,809 \n606,919 9,048 \n35,027 10 \n3,843,581 (1,434,775) \n(7,587) (6,604) \n-- \n3,045,619 13,502,286 \n16,547,905 \n2,338,904 \n \n132,004 1,240,887 \n65,702 25,736 \n-- (1,484,445) \n(6,644) \n(26,760) 17,744,003 \n17,717,243 \n634,108 9,749 \n35,837 10 \n703,840 (1,484,445) \n(7,641) (6,644) \n-- \n(115,186) 13,617,472 \n13,502,286 \n4,214,957 \n \n135,679 1,233,882 \n42,097 155,573 \n-- (1,443,756) \n(7,691) \n115,784 17,628,219 \n17,744,003 \n638,989 10,220 36,252 10 \n873,404 (1,443,756) \n(7,142) (7,691) \n-- \n100,286 13,517,186 \n13,617,472 \n4,126,531 \n \n129,294 1,233,689 \n31,097 180,655 314,733 (1,413,298) \n(7,585) \n468,585 17,159,634 \n17,628,219 \n639,302 12,865 37,130 10 \n1,166,013 (1,413,298) \n(8,056) (7,585) (7,494) \n418,887 13,098,299 \n13,517,186 \n4,111,033 \n \n125,910 1,230,175 \n30,563 72,315 \n-- (1,394,283) \n(9,033) \n55,647 17,103,987 \n17,159,634 \n613,201 12,080 35,863 10 \n1,475,626 (1,394,283) \n(8,732) (9,033) \n-- \n724,732 12,373,567 \n13,098,299 \n4,061,335 \n \n143,043 1,225,650 \n-- (238) 70,890 (1,347,633) (7,087) \n84,625 17,019,362 \n17,103,987 \n583,082 12,484 31,961 10 \n141,292 (1,347,633) \n(8,506) (7,087) \n-- \n(594,397) 12,967,964 \n12,373,567 \n4,730,420 \n \n145,045 1,227,846 \n-- (53,950) \n-- (1,334,278) \n(7,450) \n(22,787) 17,042,149 \n17,019,362 \n505,668 12,495 33,713 10 \n474,147 (1,334,278) \n(7,872) (7,450) \n-- \n(323,567) 13,291,531 \n12,967,964 \n4,051,398 \n \n150,075 1,224,380 \n-- -- -- (1,305,998) (8,757) \n59,700 16,982,449 \n17,042,149 \n418,807 10,945 32,423 -- \n2,021,748 (1,305,998) \n(7,440) (8,757) \n-- \n1,161,728 12,129,803 \n13,291,531 \n3,750,618 \n \n1 The System is a participating employer in the Georgia State Employees Postemployment Benefit Fund and the State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund. Pursuant to the requirements of GASB Statement No. 75, the fiscal year 2018 beginning Fiduciary Net Position was restated by $7,494,507. The restatement of net position was made for reporting purposes to reflect the impact of recording the initial deferred outflows of resources, net OPEB liability, and net OPEB asset. For actuarial purposes, this adjustment was recognized in fiscal year 2018 and beginning fiduciary net position was not restated. \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. \nSee accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n(continued) 71 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) Schedules of Changes in Employers' and Nonemployer Net Pension/OPEB Liability (Asset)  Defined Benefit Plans \nJune 30, 2022 (In thousands) \n \nJune 30, 2022 \n \nJune 30, 2021 \n \nJune 30, 2020 \n \nJune 30, 2019 \n \nJune 30, 2018 \n \nJune 30, 2017 \n \nJune 30, 2016 \n \nJune 30, 2015 \n \nJune 30, 2014 \n \nPublic School Employees Retirement System: \n \nTotal pension liability: \n \nService cost \n \n$ \n \nInterest \n \nBenefit changes \n \nDifferences between expected and actual experience \n \nChanges of assumptions \n \nBenefit payments \n \nRefunds of contributions \n \nNet change in total pension liability Total pension liability-beginning \n \nTotal pension liability-end (a) \n \nPlan fiduciary net position: Contributions-employer Contributions-member Net investment income (loss) Benefit payments Administrative expense Refunds of contributions \n \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \n \nPlan fiduciary net position-end (b) \n \nNet pension liability-end (a)-(b) \n \n$ \n \n14,109 83,301 16,044 (5,427) \n-- (68,203) \n(614) 39,210 1,224,416 1,263,626 \n32,491 2,256 \n(138,145) (68,203) (1,523) (614) \n(173,738) 1,199,970 1,026,232 \n237,394 \n \n14,332 80,388 \n-- (12,739) 74,759 (66,415) \n(633) 89,692 1,134,724 1,224,416 \n30,264 2,222 \n277,705 (66,415) \n(1,421) (633) \n241,722 958,248 1,199,970 \n24,446 \n \n14,017 78,414 13,680 (12,220) \n-- (66,090) \n(572) 27,229 1,107,495 1,134,724 \n32,496 2,338 \n49,913 (66,090) \n(1,424) (572) \n16,661 941,587 958,248 176,476 \n \n13,762 75,923 18,050 (8,159) \n-- (63,637) \n(609) 35,330 1,072,165 1,107,495 \n30,263 2,256 \n60,553 (63,637) \n(1,377) (609) \n27,449 914,138 941,587 165,908 \n \n13,180 73,643 17,289 (3,943) 21,354 (61,820) \n(701) 59,002 1,013,163 1,072,165 \n29,276 2,162 \n78,418 (61,820) \n(1,331) (701) \n46,004 868,134 914,138 158,027 \n \n12,788 72,157 \n-- (3,665) \n-- (59,378) \n(1,031) 20,871 992,292 1,013,163 \n26,277 2,084 \n97,715 (59,378) \n(1,308) (1,031) 64,359 803,775 868,134 145,029 \n \n11,952 68,776 \n-- (9,483) 33,215 (57,903) \n(465) 46,092 946,200 992,292 \n28,580 1,925 9,809 \n(57,903) (1,321) (465) \n(19,375) 823,150 803,775 188,517 \n \n12,088 67,652 \n-- (6,858) \n-- (56,972) \n(455) 15,455 930,745 946,200 \n28,461 1,800 \n30,129 (56,972) \n(1,545) (456) 1,417 \n821,733 823,150 123,050 \n \n11,049 66,143 \n-- -- -- (56,189) (514) 20,489 910,256 930,745 \n27,160 1,659 \n123,799 (56,189) \n(1,450) (514) \n94,465 727,268 821,733 109,012 \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n(continued) 72 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) Schedules of Changes in Employers' and Nonemployer Net Pension/OPEB Liability (Asset)  Defined Benefit Plans \nJune 30, 2022 (In thousands) \n \nJune 30, 2022 \n \nJune 30, 2021 \n \nJune 30, 2020 \n \nJune 30, 2019 \n \nJune 30, 2018 \n \nJune 30, 2017 \n \nJune 30, 2016 \n \nJune 30, 2015 \n \nJune 30, 2014 \n \nLegislative Retirement System: \n \nTotal pension liability: \n \nService cost \n \n$ \n \nInterest \n \nBenefit changes \nDifferences between expected and actual experience \n \nChanges of assumptions \n \nBenefit payments \n \nRefunds of contributions \n \nNet change in total pension liability Total pension liability-beginning \n \nTotal pension liability-end (a) \n \nPlan fiduciary net position: Contributions-employer Contributions-member Net investment income (loss) Benefit payments Administrative expense Refunds of contributions \n \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \n \nPlan fiduciary net position-end (b) \n \nNet pension asset-end (a)-(b) \n \n$ \n \n461 1,804 \n-- \n(412) -- \n(1,818) (33) 2 \n26,695 26,697 \n-- 344 (4,848) (1,818) (327) (33) \n(6,682) 42,713 36,031 (9,334) \n \n366 1,840 \n-- \n(643) 813 (1,720) (42) 614 26,081 26,695 \n-- 290 9,928 (1,720) (311) (42) \n8,145 34,568 42,713 (16,018) \n \n372 1,844 \n-- \n(485) -- \n(1,795) (21) (85) \n26,166 26,081 \n-- 325 1,824 (1,795) (305) (21) \n28 34,540 34,568 (8,487) \n \n366 1,850 \n-- \n(428) -- \n(1,856) (70) \n(138) 26,304 26,166 \n-- 339 2,228 (1,856) (290) (70) \n351 34,189 34,540 (8,374) \n \n359 1,875 \n-- \n(481) 447 (1,772) (22) 406 25,898 26,304 \n-- 323 2,962 (1,772) (283) (22) \n1,208 32,981 34,189 (7,885) \n \n357 1,892 \n-- \n(655) -- \n(1,763) (75) \n(244) 26,142 25,898 \n-- 327 3,741 (1,763) (224) (75) \n2,006 30,975 32,981 (7,083) \n \n331 1,829 \n-- \n(465) 938 (1,724) (38) 871 25,271 26,142 \n-- 328 363 (1,724) (313) (38) \n(1,384) 32,359 30,975 (4,833) \n \n338 1,824 \n-- \n(325) -- \n(1,756) (26) 55 \n25,216 25,271 \n-- 327 1,189 (1,756) (169) (26) \n(435) 32,794 32,359 (7,088) \n \n344 1,799 \n-- \n-- -- (1,801) (30) 312 24,904 25,216 \n45 282 4,969 (1,801) (152) (30) \n3,313 29,481 32,794 (7,578) \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n(continued) 73 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) Schedules of Changes in Employers' and Nonemployer Net Pension/OPEB Liability (Asset)  Defined Benefit Plans \nJune 30, 2022 (In thousands) \n \nJune 30, 2022 \n \nJune 30, 2021 \n \nJune 30, 2020 \n \nJune 30, 2019 \n \nJune 30, 2018 \n \nJune 30, 2017 \n \nJune 30, 2016 \n \nJune 30, 2015 \n \nJune 30, 2014 \n \nGeorgia Judicial Retirement System: \n \nTotal pension liability: \n \nService cost \n \n$ \n \nInterest \n \nBenefit changes \nDifferences between expected and actual experience \n \nChanges of assumptions \n \nBenefit payments \n \nRefunds of contributions \n \nNet change in total pension liability Total pension liability-beginning \n \nTotal pension liability-end (a) \n \nPlan fiduciary net position: Contributions-employer Contributions-nonemployer Contributions-member Net investment income (loss) Benefit payments Administrative expense Refunds of contributions \n \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \n \nPlan fiduciary net position-end (b) \n \nNet pension asset-end (a)-(b) \n \n$ \n \n14,428 32,785 \n760 \n5,621 -- \n(34,050) (23) \n19,521 485,387 504,908 \n7,585 2,377 5,466 (69,334) (34,050) (893) \n(23) (88,872) 605,426 516,554 (11,646) \n \n13,494 32,131 \n-- \n(2,712) 17,839 (30,958) \n(63) 29,731 455,656 485,387 \n3,830 2,240 5,190 140,103 (30,958) (846) \n(63) 119,496 485,930 605,426 (120,039) \n \n13,375 31,047 \n693 \n(24) -- (29,263) (213) 15,615 440,041 455,656 \n4,022 2,442 5,005 25,414 (29,263) (849) (213) 6,558 479,372 485,930 (30,274) \n \n13,350 30,267 \n1,065 \n(5,250) -- \n(27,462) (553) \n11,417 428,624 440,041 \n3,117 2,137 5,469 30,827 (27,462) (820) (553) 12,715 466,657 479,372 (39,331) \n \n13,019 28,666 \n3,442 \n6,379 7,466 (24,934) (150) 33,888 394,736 428,624 \n4,725 1,841 4,910 39,877 (24,934) (794) (150) 25,475 441,182 466,657 (38,033) \n \n12,514 26,826 \n3,419 \n5,258 -- \n(21,784) (166) \n26,067 368,669 394,736 \n4,081 2,603 4,906 49,259 (21,784) (728) (166) 38,171 403,011 441,182 (46,446) \n \n12,713 26,058 \n-- \n(3,603) (4,308) (19,011) \n(261) 11,588 357,081 368,669 \n4,754 2,869 5,507 5,055 (19,011) (754) (261) (1,841) 404,852 403,011 (34,342) \n \n7,751 25,566 \n-- \n(7,542) -- \n(18,365) (772) 6,638 \n350,443 357,081 \n2,696 1,564 5,061 14,697 (18,365) (819) (772) 4,062 400,790 404,852 (47,771) \n \n7,584 24,530 \n-- \n-- -- (17,441) (22) 14,651 335,792 350,443 \n1,373 1,002 4,731 60,012 (17,441) (754) \n(22) 48,901 351,889 400,790 (50,347) \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n(continued) 74 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) Schedules of Changes in Employers' and Nonemployer Net Pension/OPEB Liability (Asset)  Defined Benefit Plans \nJune 30, 2022 (In thousands) \n \nGeorgia Military Pension Fund: Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments \nNet change in total pension liability Total pension liability-beginning \nTotal pension liability-end (a) \nPlan fiduciary net position: Contributions-employer Contributions-member Net investment income (loss) Benefit payments Administrative expense \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \nPlan fiduciary net position-end (b) \nNet pension liability-end (a)-(b) \n \nJune 30, June 30, June 30, \n \n2022 \n \n2021 \n \n2020 \n \nJune 30, 2019 \n \nJune 30, 2018 \n \nJune 30, 2017 \n \nJune 30, 2016 \n \nJune 30, 2015 \n \nJune 30, 2014 \n \n$ \n \n155 \n \n3,778 \n \n-- \n \n313 -- \n(1,527) \n2,719 54,739 \n57,458 \n \n2,697 -- \n(4,693) (1,527) \n(266) \n \n(3,789) 38,677 \n \n34,888 \n \n$ \n \n22,570 \n \n106 3,443 \n-- \n142 4,593 (1,428) 6,856 47,883 54,739 \n2,684 -- \n8,709 (1,428) \n(255) 9,710 28,967 38,677 16,062 \n \n95 3,284 \n-- \n162 -- \n(1,297) 2,244 45,639 47,883 \n2,611 -- \n1,485 (1,297) \n(249) 2,550 26,417 28,967 18,916 \n \n97 3,109 \n-- \n449 -- \n(1,220) 2,435 43,204 45,639 \n2,537 -- \n1,683 (1,220) \n(236) 2,764 23,653 26,417 19,222 \n \n84 2,964 \n-- \n116 1,093 (1,138) 3,119 40,085 43,204 \n2,377 -- \n1,928 (1,138) \n(225) 2,942 20,711 23,653 19,551 \n \n89 2,732 \n-- \n1,356 -- \n(1,042) 3,135 36,950 40,085 \n2,018 -- \n2,262 (1,042) \n(244) 2,994 17,717 20,711 19,374 \n \n73 2,465 \n-- \n950 1,082 (963) 3,607 33,343 36,950 \n1,990 -- \n240 (963) (262) 1,005 16,712 17,717 19,233 \n \n73 2,330 \n-- \n326 -- \n(897) 1,832 31,511 33,343 \n1,893 -- \n585 (896) (121) 1,461 15,251 16,712 16,631 \n \n73 2,223 \n-- \n-- -- (841) 1,455 30,056 31,511 \n1,892 -- \n2,179 (841) (110) 3,120 12,131 15,251 16,260 \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n(continued) 75 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) Schedules of Changes in Employers' and Nonemployer Net Pension/OPEB Liability (Asset)  Defined Benefit Plans \nJune 30, 2022 (In thousands) \n \nJune 30, 2022 \n \nJune 30, 2021 \n \nJune 30, 2020 \n \nJune 30, 2019 \n \nJune 30, 2018 \n \nJune 30, 2017 \n \nStatement Employees' Assurance Department Retired and Vested Inactive Members Trust Fund: \nTotal OPEB Liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Death benefits Refunds of contributions \nNet change in total OPEB liability Total OPEB liability-beginning \nTotal OPEB liability-end \nPlan fiduciary net position: Contributions - employer Insurance premiums - member Net investment income (loss) Death benefits Administrative expense Other \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \nPlan fiduciary net position-end (b) \nNet OPEB asset-end (a)-(b) \n \n$ \n \n2,551 \n \n64,643 \n \n-- \n \n3,562 \n \n-- \n \n(55,053) \n \n-- \n \n15,703 950,995 \n \n966,698 \n \n-- 2,641 (179,369) (55,053) (755) \n-- \n \n(232,536) 1,566,821 \n \n1,334,285 \n \n$ \n \n(367,587) \n \n2,957 69,011 \n-- (2,342) (36,651) (54,680) \n-- (21,705) 972,700 950,995 \n-- 2,817 362,663 (54,680) (697) \n-- 310,103 1,256,718 1,566,821 (615,826) \n \n3,237 67,796 \n-- (4,670) \n-- (44,754) \n-- 21,609 951,091 972,700 \n-- 3,088 65,248 (44,754) (720) \n-- 22,862 1,233,856 1,256,718 (284,018) \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n3,617 65,708 \n-- 366 \n-- (37,416) \n-- 32,275 918,816 951,091 \n-- 3,328 79,193 (37,416) (716) \n5 44,394 1,189,462 1,233,856 (282,765) \n \n3,695 63,242 \n-- 4,697 22,085 (36,249) \n-- 57,470 861,346 918,816 \n-- 3,599 101,542 (36,249) (681) \n-- 68,211 1,121,251 1,189,462 (270,646) \n \n3,959 61,076 \n-- -- -- (36,058) -- 28,977 832,369 861,346 \n1 3,793 125,550 (36,058) (576) \n-- 92,710 1,028,541 1,121,251 (259,905) \n \n76 \n \n Financial Section \n \nRequired Supplementary Information (UNAUDITED) \nSchedule of Investment Returns Year ended June 30, 2022 \n \nPooled Investment Fund: \nAnnual money-weighted rate of return, net of investment expense \n \n2022 \n \n2021 \n \n2020 \n \n2019 \n \n(18.7)% 19.4% (3.6)% (1.8)% \n \n2018 0.6% \n \nSchedule is intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n2017 2.9% \n \n2016 \n \n2015 \n \n(7.2)% (5.3)% \n \n2014 6.0% \n \n77 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) Schedules of the System's Proportionate Share of the Net OPEB Liability (Asset) \nYear ended June 30, 2022 (In thousands) \n \nJune 30, 2022 \n \nJune 30, 2021 \n \nJune 30, 2020 \n \nJune 30, 2019 \n \nJune 30, 2018 \n \nSEAD-OPEB: System's proportion of the net OPEB asset System's proportionate share of the net OPEB asset System's covered payroll \n \n0.231607 % $ (1,426) \n2,511 \n \n0.211823 % \n \n$ \n \n(602) \n \n2,524 \n \n0.201267 % \n \n0.200064 % \n \n$ \n \n(569) \n \n$ \n \n(541) \n \n2,567 \n \n2,770 \n \n0.192864 % \n \n$ \n \n(501) \n \n2,809 \n \nSystem's proportionate share of the net OPEB asset as a percentage of its covered payroll \n \n(56.81) % \n \n(23.84) % \n \n(22.17) % \n \n(19.55) % \n \n(17.85) % \n \nPlan fiduciary net position as a percentage of the total OPEB asset \n \n164.76 % \n \n129.2 % \n \n129.73 % \n \n129.46 % \n \n130.17 % \n \nState OPEB Fund: System's proportion of the net OPEB liability System's proportionate share of the net OPEB liability System's covered payroll \n \n0.198205 % \n \n$ \n \n545 \n \n5,713 \n \n0.191555 % $ 2,156 \n5,700 \n \n0.189291 % \n \n0.181584 % \n \n$ \n \n2,350 \n \n$ 4,749 \n \n5,578 \n \n5,415 \n \n0.185830 % $ 7,571 \n5,265 \n \nSystem's proportionate share of the net OPEB liability as a percentage of its covered payroll \n \n9.53 % \n \n37.82 % \n \n42.13 % \n \n87.71 % \n \n143.81 % \n \nSystem's fiduciary net position as a percentage of the total OPEB liability \n \n87.58 % \n \n59.71 % \n \n56.57 % \n \n31.48 % \n \n17.34 % \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedules and accompanying independent auditors' report. \n \n78 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) Schedules of the System's Contributions to OPEB Plans \nYear ended June 30, 2022 (In thousands) \n \nJune 30, 2022 \n \nJune 30, 2021 \n \nJune 30, 2020 \n \nJune 30, 2019 \n \nJune 30, 2018 \n \nSEAD-OPEB: \n \nContractually required contribution* \n \n$ \n \n-- \n \nContributions in relation to the contractually required contribution \n \n-- \n \nContribution deficiency (excess) \n \n-- \n \nSystem's covered payroll \n \n2,607 \n \nContributions as a percentage of a covered payroll \n \n-- % \n \n$ \n \n-- \n \n-- \n \n-- \n \n2,511 \n \n-- % \n \n$ \n \n-- \n \n-- \n \n-- \n \n2,524 \n \n-- % \n \n$ \n \n-- \n \n-- \n \n-- \n \n2,567 \n \n-- % \n \n$ \n \n-- \n \n-- \n \n-- \n \n2,770 \n \n-- % \n \nState OPEB Fund: \n \nContractually required contribution \n \n$ 284 \n \nContributions in relation to the contractually required contribution \n \n284 \n \nContribution deficiency (excess) \n \n-- \n \nSystem's covered payroll \n \n5,929 \n \nContributions as a percentage of a covered payroll \n \n4.78 % \n \n$ 301 301 -- \n5,713 5.26 % \n \n$ 288 288 -- \n5,700 5.05 % \n \n$ 1,012 1,012 -- 5,578 18.15 % \n \n$ 905 905 -- \n5,415 16.71 % \n \n*Employer contributions are not currently required for the SEAD-OPEB plan. Schedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedules and accompanying independent auditors' report. \n \n79 \n \n Financial Section \nNotes to Required Supplementary Information (UNAUDITED) \nJune 30, 2022 \nRequired Supplementary Information Schedules for the System as the Plan: \n(1) Schedule of Employers' and Nonemployer Contributions  Defined Benefit Plans \nThis schedule presents the required contributions and the percent of required contributions actually contributed. \n(2) Schedule of Employers' and Nonemployer Net Pension/OPEB Liability (Asset) and Related Ratios  Defined Benefit Plans \nThe components of the net pension/OPEB liability (asset) as of the fiscal year end and the fiduciary net position as a percentage of the total pension/OPEB liability (asset) as of that date are presented in this schedule. This trend information will be accumulated to display a 10-year presentation. \n(3) Schedule of Changes in Employers' and Nonemployer Net Pension/OPEB Liability (Asset)  Defined Benefit Plans \nNet pension/OPEB liability (asset), which is measured as total pension/OPEB liability less the amount of the fiduciary net position, is presented in this schedule. This trend information will be accumulated to display a 10year presentation. \n(4) Schedule of Investment Returns \nThis schedule presents historical trend information about the annual money-weighted rate of return on plan investments, net of plan investment expense. This trend information will be accumulated to display a 10-year presentation. (5) Individual Plan Information \nThis note provides information about changes of benefit terms, changes of assumptions, and methods and assumptions used in calculations of actuarially determined contributions. \n(a) Employees' Retirement System \nChanges of benefit terms   A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2016.  A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2017.  Two one-time 2% payments were granted to certain retirees and beneficiaries effective July 2018 and January 2019.  Two one-time 3% payments were granted to certain retirees and beneficiaries effective July 2019 and January 2020.  Two one-time 3% payments were granted to certain retirees and beneficiaries effective July 2021 and January 2022. \nChanges of assumptions  On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal, and salary increases. Subsequent to the June 30, 2016 actuarial valuation, the ERS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the ERS Board's new funding policy, the assumed investment rate \n(continued) 80 \n \n Financial Section \nNotes to Required Supplementary Information (UNAUDITED) \nJune 30, 2022 \nof return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date, and remained unchanged for June 30, 2019 and June 30, 2020 measurement dates. On December 17, 2020, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System based on the experience study prepared for the five-year period ending June 30, 2019. Primary among the changes were the updates to rates of mortality, retirement, withdrawal, and salary increases. This also included a change to the long-term assumed investment rate of return to 7.00%. Therefore, a change in assumptions due to the reduction in the assumed investment rate of return from 7.30% to 7.00%, are reflected, along with the assumptions changes due to the experience study, in the calculation of the June 30, 2021 ERS Total Pension Liability. On April 21, 2022, the Board adopted a new funding policy superseding and replacing the funding policy adopted March 15, 2018. This new funding policy, in part, provides that the Actuarial Accrued Liability and Normal Cost of the System will include a prefunded variable COLA for eligible retirees and beneficiaries of the System. Under the new policy, future COLAs are provided through a profit-sharing mechanism using the System's asset performance. After studying the parameters of this new policy, the assumption for future COLAs was set at 1.05%. Previously, no future COLAs were assumed. \n(b) Public School Employees' Retirement System \nChanges of benefit terms  \n A 2% COLA was granted to certain retirees and beneficiaries effective July 2016.  The monthly benefit accrual rate was increased from $14.75 to $15.00 per year of creditable service \neffective July 1, 2017.  A 2% COLA was granted to certain retirees and beneficiaries effective July 2017.  The monthly benefit accrual rate was increased from $15.00 to $15.25 per year of creditable service \neffective July 1, 2018.  A 2% COLA was granted to certain retirees and beneficiaries effective July 2018.  The monthly benefit accrual rate was increased from $15.25 to $15.50 per year of creditable service \neffective July 1, 2019.  Two 1.5% COLAs were granted to certain retirees and beneficiaries effective July 2019 and January \n2020.  The monthly benefit accrual rate was increased from $15.50 to $15.75 per year of credible service \neffective July 1, 2021 for members retiring on or after August 1, 2012.  Two 1.5% COLAs were granted to certain retirees and beneficiaries effective July 2021 and January \n2022. \nChanges of assumptions  On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, and withdrawal. Subsequent to the June 30, 2016 actuarial valuation, the PSERS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the PSERS Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date, and remained unchanged for June 30, 2019 and June 30, 2020 measurement dates. On December 17, 2020, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System based on the experience study prepared for the five-year period ending June 30, 2019. Primary among the changes were the updates to rates of mortality, retirement, withdrawal, and salary increases. This also included a change to the long-term assumed investment rate of return to 7.00%. Therefore, a change in assumptions due to the reduction in the assumed investment rate of return from 7.30% to 7.00%, are reflected, along with the assumptions changes due to the experience study, in the calculation of the June 30, 2021 PSERS Total Pension Liability. \n(continued) 81 \n \n Financial Section \nNotes to Required Supplementary Information (UNAUDITED) \nJune 30, 2022 \n(c) Legislative Retirement System \nChanges of benefit terms  \n Two one-time 3% payments were granted to certain retirees and beneficiaries effective July 2019 and January 2020. \n Two one-time 3% payments were granted to certain retirees and beneficiaries effective July 2021 and January 2022. \nChanges of assumptions  On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, and withdrawal. Subsequent to the June 30, 2016 actuarial valuation, the LRS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the LRS Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date, and remained unchanged for June 30, 2019 and June 30, 2020 measurement dates. On December 17, 2020, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System based on the experience study prepared for the five-year period ending June 30, 2019. Primary among the changes were the updates to rates of mortality, retirement, withdrawal, and salary increases. This also included a change to the long-term assumed investment rate of return to 7.00%. Therefore, a change in assumptions due to the reduction in the assumed investment rate of return from 7.30% to 7.00%, are reflected, along with the assumptions changes due to the experience study, in the calculation of the June 30, 2021 LRS Total Pension Liability. \n(d) Georgia Judicial Retirement System \nChanges of benefit terms  \n A 2% cost-of-living adjustment was granted to certain retirees and beneficiaries effective July 1, 2016. \n A 2% cost-of-living adjustment was granted to certain retirees and beneficiaries effective July 1, 2017. \n Two one-time 2% payments were granted to certain retirees and beneficiaries effective July 2018 and January 2019. \n Two one-time 3% payments were granted to certain retirees and beneficiaries effective July 2019 and January 2020. \n Two one-time 3% payments were granted to certain retirees and beneficiaries effective July 2021 and January 2022. \nChanges of assumptions  On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal, and salary increases. Subsequent to the June 30, 2016 actuarial valuation, the GJRS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the GJRS Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date, and remained unchanged for June 30, 2019 and June 30, 2020 measurement dates. On December 17, 2020, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System based on the experience study prepared for the five-year period ending June 30, 2019. Primary among the changes were the updates to rates of mortality, retirement, withdrawal, and salary increases. This also included a change to the long-term assumed investment rate of return to 7.00%. Therefore, a change in \n(continued) 82 \n \n Financial Section \nNotes to Required Supplementary Information (UNAUDITED) \nJune 30, 2022 \nassumptions due to the reduction in the assumed investment rate of return from 7.30% to 7.00%, are reflected, along with the assumptions changes due to the experience study, in the calculation of the June 30, 2021 GJRS Total Pension Liability. \n(e) Georgia Military Pension Fund \nChanges of benefit terms  none \nChanges of assumptions  On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, and withdrawal. Subsequent to the June 30, 2016 actuarial valuation, the GMPF Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the GMPF Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date, and remained unchanged for June 30, 2019 and June 30, 2020 measurement dates. On December 17, 2020, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System based on the experience study prepared for the five-year period ending June 30, 2019. Primary among the changes were the updates to rates of mortality, retirement, withdrawal, and salary increases. This also included a change to the long-term assumed investment rate of return to 7.00%. Therefore, a change in assumptions due to the reduction in the assumed investment rate of return from 7.30% to 7.00%, are reflected, along with the assumptions changes due to the experience study, in the calculation of the June 30, 2021 GMPF Total Pension Liability. \n(f) State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEADOPEB) as a plan \nChanges of benefit terms  none \nChanges of assumptions  Subsequent to the June 30, 2016 actuarial valuation, the SEAD Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the SEAD Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date, and remained unchanged for June 30, 2019 and June 30, 2020 measurement dates. On December 17, 2020, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System based on the experience study prepared for the fiveyear period ending June 30, 2019. Primary among the changes were the updates to rates of mortality, retirement, withdrawal, and salary increases. This also included a change to the long-term assumed investment rate of return to 7.00%. Therefore, a change in assumptions due to the reduction in the assumed investment rate of return from 7.30% to 7.00%, are reflected, along with the assumptions changes due to the experience study, in the calculation of the June 30, 2021 SEAD Total OPEB Liability. \n(continued) 83 \n \n Financial Section \nNotes to Required Supplementary Information (UNAUDITED) \nJune 30, 2022 \n \nThe following actuarial methods and assumptions were used to determine the most recent contribution rates reported in the schedules of employer and nonemployer contributions calculated as of June 30, three years prior to the end of the first calendar year in which contributions are reported: \n \nERS \n \nPSERS \n \nLRS \n \nActuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases \nInvestment rate of return \nCost of living adjustments \n \nEntry age \nLevel dollar, closed \n15.3 years \nFive-year smoothed fair \n2.75% \n3.25 to 7.00%, including inflation \n7.30% net of pension plan investment expense, including inflation \nNone \n \nEntry age Level dollar, closed 19.6 years Five-year smoothed fair 2.75% n/a \n7.30% net of pension plan investment expense, including inflation 1.50% Semi-annually \n \nEntry age Level dollar, open Infinite Five-year smoothed fair 2.75% n/a \n7.30% net of pension plan investment expense, including inflation 1.50% Semi-annually \n \nActuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases \nInvestment rate of return \nCost of living adjustments \n \nGJRS Entry age Level percent of pay, closed 14.3 years Five-year smoothed fair 2.75% 4.5%, including inflation \n \nGMPF Entry age Level dollar, closed 14.6 years Five-year smoothed fair 2.75% n/a \n \n7.30% net of pension plan investment expense, including inflation \nNone \n \n7.30% net of pension plan investment expense, including inflation \nNone \n \nActuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases \nERS JRS LRS Investment rate of return \nCost of living adjustments \n \nSEAD - OPEB Entry age Level dollar, open Infinite Fair Value of Assets 2.75% \n3.25-7.00%, including inflation 4.5%, including inflation n/a 7.30% net of pension plan investment expense, including inflation None \n \n(continued) 84 \n \n Financial Section \nNotes to Required Supplementary Information (UNAUDITED) \nJune 30, 2022 \nRequired Supplementary Information Schedules for the System as a participating employer: \n(1) Schedules of the System's Proportionate Share of the Net OPEB Liability (Asset) \nThe information in this schedule presents historical information related to the net OPEB liability (asset) that is recognized by the System in the current period financial statements. This trend information will be accumulated to display a 10-year presentation. \n(2) Schedules of the System's Contributions to OPEB Plans This schedule presents the required contributions and the percent of required contributions actually contributed. \n(3) Individual Plan Information This note provides information about changes of benefit terms, changes of assumptions, and methods and assumptions used in calculations of actuarially determined contributions. \n(a) SEAD-OPEB Changes of benefit terms  none \nChanges of assumptions  On December 17, 2015, the SEAD Board adopted recommended changes to the economic and demographic assumptions utilized by the Plan. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for June 30, 2017 actuarial valuation and further reduced from 7.40% to 7.30% for the June 30, 2018 actuarial valuation. \nOn December 17, 2020, the Board adopted recommended changes to the economic and demographic assumptions utilized by the Systems based on the experience study prepared for the five-year period ending June 30, 2019. Primary among the changes were the updates to rates of mortality, retirement, withdrawal, and salary increases. This also included a change to the long-term assumed investment rate of return to 7.00%. Therefore, a change in assumptions due to the reduction in the assumed investment rate of return from 7.30% to 7.00%, are reflected, along with the assumptions changes due to the experience study, in the calculation of the June 30, 2021 SEAD Total OPEB Liability. \n(b) State OPEB Fund Changes of benefit terms  none \nChanges of assumptions  The June 30, 2017 actuarial valuation was revised, for various factors, including the methodology used to determine how employees and retirees were assigned to each of the OPEB Funds and anticipated participation percentages. Current and former employees of State organizations (including technical colleges, community service boards and public health departments) are now assigned to the State OPEB fund based on their last employer payroll location: irrespective of retirement affiliation. In the June 30, 2019 valuation the inflation assumption was lowered from 2.75% to 2.50% in anticipation of the upcoming ERS Experience Study. Additionally, decremental assumptions were changed to reflect the Teachers Retirement Systems experience study. Approximately 6.0% of employees are members of the Teachers Retirement System. In the June 30, 2020 valuation decremental assumptions were changed to reflect the Employees Retirement Systems experience study. The discount rate was updated from 3.09% as of June 30, 2016, to 3.60% as of June 30, 2017, to 5.22% as of June 30, 2018, to 7.30% as of June 30, 2019, to 7.06% as of June 30, 2020, and to 7.00% as of June 30, 2021. \n85 \n \n Financial Section \nAdditional Information \nSchedule of Administrative Expenses - Contributions and Expenses Year ended June 30, 2022 (In thousands) \nContributions from fiduciary funds: Employees' Retirement System Public School Employees Retirement System Legislative Retirement System Georgia Judicial Retirement System Georgia Military Pension Fund Superior Court Judges Retirement Fund District Attorneys Retirement Fund Georgia Defined Contribution Plan 401(k) Plan 457 Plan State Employees' Assurance Department - OPEB Total fiduciary funds \nContributions from proprietary fund: State Employees' Assurance Department Active Members Fund Total contributions \nExpenses: Personal services: Salaries and fringes Retirement contributions FICA Health insurance Miscellaneous \nCommunications: Postage Publications and printing Telecommunications Travel \nProfessional services: Accounting services Computer services Contracts Actuarial services Medical services Audit fees Legal services \nManagement fees: Building maintenance \nOther services and charges: Temporary services Supplies and materials Repairs and maintenance Courier services Depreciation Miscellaneous Office equipment \nTotal expenses Net income \nSee accompanying independent auditors' report. \n \n$ \n \n7,577 \n \n1,523 \n \n327 \n \n893 \n \n266 \n \n2 \n \n2 \n \n987 \n \n3,437 \n \n585 \n \n755 \n \n16,354 \n \n84 16,438 \n \n6,242 1,137 \n452 293 \n44 8,168 \n \n164 12 \n115 13 \n304 \n \n792 1,088 3,455 \n388 52 \n324 32 \n6,131 \n \n635 \n \n763 63 14 5 \n250 103 \n2 1,200 16,438 \n \n$ \n \n-- \n \n86 \n \n(continued) \n \n Financial Section \nAdditional Information \nSchedule of Investment Expenses Year ended June 30, 2022 (In thousands) \n \nInvestment advisory and custodial fees Miscellaneous \n \n$ \n \n9,848 \n \n14,044 \n \nTotal investment expenses* \n \n$ \n \n23,892 \n \n* Total investment expenses are reported on the Combining Statement of Changes in Fiduciary Net Position and are included with the elements of \"Investment income (loss)\" on page 29 under the title \"Less investment expenses\" and the Statement of Revenues, Expenses, and Changes in Net Position - State Employees' Assurance Department Active Members Fund and are included with the elements of \"Nonoperating revenues (expenses)\" on page 31 under the title \"Less investment expenses.\" \nSee accompanying independent auditors' report. \n \n87 \n \n Investment Section \nGeorgia's Waterfalls \nCherokee Falls \n \n Cherokee and Hemlock Falls \nCloudland Canyon Waterfalls Trail: 2.1 miles, difficult Cloudland Canyon State Park lies in the northwest corner of Georgia, near the borders of Tennessee and Alabama. Though this out-and-back hike is only 2 miles, it's a difficult trek. The trail drops over 400 feet to the waterfalls before climbing to return to the trailhead. The hike's many stairs are a workout, although the beauty of the falls make the hike worthwhile. The Cloudland Canyon Waterfalls Trail skirts around the canyon's eastern walls. Views here from the canyon rim are beautiful in any season, though they're especially gorgeous in autumn. Cherokee Falls is the first waterfall, and plunges 60 feet into a clear, blue pool of water. This waterfall is created from Sitton's Gulch Creek dropping from an immense, arced rock outcrop. Cherokee Falls varies in intensity with seasonal rainfall, ranging from roaring to a mere trickle. The trail departs Cherokee Falls, retracing the hike to the second trail intersection and follows the Waterfalls Trail to Hemlock Falls. This next waterfall drops over 90 feet from a rock wall, plunging into the surrounding boulder-filled canyon floor. \nLearn more at atlantatrails.com \n \n Investment Section \n \nInvestment Overview \n \nU.S. real GDP turned negative in the second half of the fiscal year as inflation moved toward record levels. The Federal Reserve began aggressively raising rates and reducing its bond holdings this past year to offset this pressure. The net result was an unusual return paradigm, with both equity and bond returns turning negative for the fiscal year. U.S. equities were down about 11% last year, while foreign equities were down over 19%. Broad domestic bond indexes were down over 8%. \nWe continually emphasize that the pension plan has a long-term investment horizon and that short-term concerns should not drive investment decisions. The System invests primarily in a mix of liquid, high-quality bonds and stocks. In addition, the System continues to build its private markets program in a disciplined manner. These types of investments further diversify the portfolio and allow the System to participate in rising markets while moderating the risks on the downside. A high-quality balanced fund has proven to be a successful strategy in a variety of markets over long periods of time. \nAs in previous years, the bias to quality was a primary goal and was successfully met. \"Conservation of Capital\" and \"Conservatism\" remain the guiding principles for investment decisions. The Board of Trustees continues to use a diversified portfolio to accomplish these objectives. \nFollowing 12.2% real GDP growth last year, the growth rate fell to 1.6% this year, attributable to negative real growth for the second half of the fiscal year. This turn in growth coincided with a spike in inflation, with a reported CPI of 9.1% for June, the largest 12-month increase since November 1981. Nominal GDP growth was 9.3%. Quarterly real GDP growth volatility remains unusually high and dates back to COVID-19-related shutdowns. Globally, foreign economies are as weak as, if not weaker than, the U.S. This was particularly the case in China, where global weakness and its zero-COVID-19 policy significantly slowed its economy. Other sources of weakness included the war between Russia and Ukraine and the growing likelihood of a recession in Europe. \nStudies undertaken to evaluate the investment returns of pension funds over very long-time horizons indicate that the asset allocation decision has the largest impact on the fund's returns. Although the returns for the various asset categories vary from year to year, over the long term, equities typically outperform fixed income and cash by a very wide margin. For example, the ten-year returns for equities was 10.7%, while for bonds it was 1.5%. For that reason, the System has generally maintained significant equity exposure, with the remainder of the fund invested in fixed income securities designed to generate income and preserve capital. \n \nterms and relative to an asset class index, by reducing emphasis on the short-term volatility of markets. The Daily Valuation Method, a time-weighted rate of return, was used to calculate returns in a manner consistent with the CFA Institute's objectives as stated in its publication, \"Global Investment Performance Standards Handbook,\" third edition. \nThe S\u0026P 500 had a return of (10.6%). The S\u0026P MidCap 400 and the S\u0026P SmallCap 500 indexes had returns of (14.6%) and (16.8%), respectively. While negative for the fiscal year, the long-term returns for these indexes are impressive, with all three reporting ten-year annualized performance of over 10%. Growth stocks underperformed value stocks for the year, a reversal from recent trends. On a sector basis, consumer staples, energy and utilities all had a positive return for the year. \nInternational markets were similarly weak. The MSCI EAFE Index had a return of (17.8%) and the Emerging Markets Index had a return of (25.2%). Nearly all countries recorded a negative return over the past year. Japan was the largest negative contributor to the MSCI EAFE index, while China was the largest drag on the Emerging Markets Index performance. The U.S. dollar was particularly strong last year, with the representative United States Dollar Index reporting a 13.3% increase. \nFixed income yields moved meaningfully higher last year as central banks reversed course to focus on inflation. For example, the Federal Reserve began raising rates in March, with the Federal Funds Rate target range moving from 0-0.25% to 1.5-1.75%. These moves caused negative returns on bonds, with yields on the 1-year, 10-year, and 30-year Treasuries increasing by 2.6%, 1.5%, and 1.06%, respectively. The 10-year Treasury had a return of (11.0%) for the year, while the 30-year Treasury had a return of (19.1%). \nWe look at two fixed-income indexes to measure the bond market's performance. The Bloomberg U.S. Government/ Credit Index had a return of (10.9%). It is a broad index containing corporate and government-sponsored bonds as well as Treasuries. The FTSE Gov/Corp AAA/AA had a return of (8.8%). It is also a broad index containing higherrated corporate bonds as well as Treasuries and Government securities. \nIn summary, due to the long-term investment focus, and despite remarkable market volatility and high inflation, the investment status of the System is excellent. The high quality of the System's investments is in keeping with the continued policy of \"Conservatism\" and \"Conservation of Capital.\" \n \nReturns for one, three, five, ten, twenty, and thirty-year periods are presented in this section. Longer periods allow for a more valid evaluation of returns, both in absolute \n \nPrepared by the Division of Investment Services \n \n90 \n \n Investment Section \nPooled Investment Fund \nAs of June 30, 2022 (in thousands) \n \nEmployees' Retirement System (ERS) Public School Employees Retirement System (PSERS) Legislative Retirement System (LRS) Georgia Judicial Retirement System (GJRS) State Employees' Assurance Department (SEAD) - Active State Employees' Assurance Department (SEAD) - OPEB Survivors Benefit Fund (SBF) Georgia Military Pension Fund (GMPF) Total \nRates of Return \n \n15.0 10.0 \n5.0 0.0 -5.0 -10.0 -15.0 -20.0 \n \n1 Year 3 Year 5 Year 10 Year 20 Year 30 Year \n \nEquities MSCI ACWI ex US \n \nS\u0026P 1500 \n \n6.0 4.0 2.0 0.0 -2.0 -4.0 -6.0 -8.0 -10.0 -12.0 \n \n$ \n \n13,793,518 \n \n1,026,546 \n \n36,112 \n \n515,797 \n \n357,357 \n \n1,334,220 \n \n191,101 \n \n34,923 \n \n$ \n \n17,289,574 \n \n1 Year \n \n3 Year 5 Year 10 Year 20 Year 30 Year \nFixed Income Bloomberg US Government/Credit 1 month T bills \n \n10.0 5.0 0.0 -5.0 \n-10.0 -15.0 \n \n1 Year 3 Year 5 Year 10 Year 20 Year 30 Year \n \nTotal Portfolio \n \nCPI \n \nEquities S\u0026P 1500 MSCI ACWI \n \nFixed \n \nBloomberg US \n \n1 Month Total Portfolio CPI \n \nex US \n \nIncome Government / Credit T-Bills \n \n1 year \n \n(15.27)% (11.02)% \n \n(19.42)% \n \n(7.43)% \n \n(10.85)% 0.15 % \n \n(11.71)% \n \n3 year 5 year 10 year \n \n7.93 % 8.72 % 10.73 % \n \n10.29 % 10.92 % 12.79 % \n \n1.35 % 2.50 % 4.83 % \n \n(0.06)% 1.24 % 1.51 % \n \n(0.77)% 1.05 % 1.67 % \n \n0.53 % 1.02 % 0.57 % \n \n6.40 % 7.05 % 8.26 % \n \n20 year 30 year \n \n7.91 % 8.86 % \n \n9.17 % -- % \n \n5.78 % -- % \n \n3.63 % 5.32 % \n \n3.71 % 4.91 % \n \n1.12 % 2.15 % \n \n6.97 % 7.94 % \n \nNote: Time-weighted rates of return are calculated using the Daily Valuation Method based on market rates of return. \n \n9.00 % 4.97 % 3.88 % 2.60 % 2.52 % 2.52 % \n \n91 \n \n Investment Section \nAsset Allocation at Fair Value \n \n70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% \n0.00% \n \n2022 \n \n2021 \n \n2020 \n \nEquities Mutual \u0026 Commingled Funds \n \n2019 \n \n2018 \n \nFixed Income Private Equity \n \n2017 \n \nInvestment Summary \n \nAsset Allocation as of June 30 (in percentages) \n \nEquities Fixed Income Mutual and Commingled Funds Private Equity \n \n2022 59.5 % 26.0 11.2 3.3 \n \n2021 63.2 23.8 10.7 2.3 \n \n2020 60.9 26.9 10.2 2.0 \n \nTotal \n \n100.0 % \n \n100.0 \n \n100.0 \n \n2019 61.1 27.4 9.7 1.8 \n100.0 \n \n2018 61.9 28.1 8.8 1.2 \n100.0 \n \n2017 63.9 27.1 8.2 0.8 \n100.0 \n \nAsset Allocation as of June 30 (in millions) \n \n2022 \n \n2021 \n \nEquities Fixed Income Mutual and Commingled Funds Private Equity \n \n$ 11,569 5,044 2,168 632 \n \n14,412 5,423 2,430 526 \n \nTotal \n \n$ 19,413 22,791 \n \n2020 11,279 \n4,959 1,893 \n365 \n18,496 \n \n2019 11,138 \n4,984 1,769 \n335 \n18,226 \n \n2018 11,140 \n5,040 1,599 \n222 \n18,001 \n \n2017 11,030 \n4,668 1,421 \n134 \n17,253 \n \n92 \n \n Investment Section \nSchedule of Fees and Commissions \nYear ended June 30, 2022 (In thousands) \n \nInvestment Advisors' Fees: \n \nU.S. Equity \n \n$ \n \nInternational Equity \n \nInvestment Commissions: \n \nU.S. Equity \n \nInternational Equity \n \nTransaction Fees: \n \nMiscellaneous*: \n \nTotal Fees and Commissions \n \n$ \n \n*Includes capitalized fees not included in total investment expenses shown on page 93. \n \n3,410 5,760 \n585 1,396 \n556 23,163 \n34,870 \n \n93 \n \n Investment Section \nTwenty Largest Equity Holdings  \nAs of June 30, 2022 (In thousands) \n \nShares \n2,798,956 1,365,384 \n111,603 1,759,830 \n208,989 144,990 310,270 429,620 470,360 1,476,875 834,641 270,489 864,718 457,642 426,317 1,352,157 1,074,990 399,066 133,105 556,598 \n \nCompany \nApple Inc. Microsoft Corp. Alphabet Inc. Amazon.Com Inc. UnitedHealth Group Inc. Tesla Inc. Berkshire Hathaway Inc. Visa Inc. Johnson \u0026 Johnson Pfizer Inc. Merck \u0026 Co. Inc. The Home Depot Inc. Taiwan Semiconductor Manufacturing Company Ltd. Nvidia Corp. Meta Platforms, Inc. Verizon Communications Inc. Coca Cola Co PepsiCo, Inc. Broadcom Inc. JPMorgan Chase \u0026 Co. \n \nTop Twenty Equities Remaining Equities \n \nTotal Equities \nA complete listing is available upon written request, subject to restrictions of O.C.G.A. Section 47-1-14. \n \nFair Value \n \n$ \n \n382,673 \n \n350,672 \n \n243,621 \n \n186,911 \n \n107,343 \n \n97,639 \n \n84,710 \n \n84,588 \n \n83,494 \n \n77,433 \n \n76,094 \n \n74,187 \n \n70,691 \n \n69,374 \n \n68,744 \n \n68,622 \n \n67,628 \n \n66,508 \n \n64,664 \n \n62,678 \n \n$ \n \n2,388,274 \n \n9,181,004 \n \n$ 11,569,278 \n \n94 \n \n Investment Section \nTop 10 Fixed Income Holdings* \nAs of June 30, 2022 \n \nIssuer \nU.S. Treasury Note U.S. Treasury Note U.S. Treasury Note U.S. Treasury Note U.S. Treasury Note U.S. Treasury Note U.S. Treasury Note U.S. Treasury Bond U.S. Treasury Bond U.S. Treasury Note \n \nYear of Maturity \n2024 2030 2025 2025 2025 2024 2027 2039 2028 2028 \n \nInterest Rate \n2.2500 % 0.8750 2.6250 2.5000 2.7500 1.0000 2.2500 3.5000 5.2500 1.5000 \n \nPar Value (in thousands) \n \n$ \n \n313,000 \n \n315,000 \n \n200,000 \n \n200,000 \n \n190,000 \n \n180,000 \n \n160,000 \n \n113,000 \n \n102,000 \n \n120,000 \n \nFair Value (in thousands) \n \n$ \n \n307,695 \n \n265,967 \n \n197,962 \n \n197,376 \n \n188,301 \n \n171,416 \n \n153,394 \n \n118,045 \n \n114,746 \n \n108,966 \n \nTotal of 10 Largest ERS \u0026 GDCP Fixed Income Holdings Remaining Fixed Income Holdings \nTotal ERS and Defined Contribution Fixed Income Securities \n \n1,823,868 $ 3,219,563 \n$ 5,043,431 \n \n*A complete listing is available upon written request, subject to restrictions of O.C.G.A. Section 47-1-14. \n \n95 \n \n Actuarial Section \nGeorgia's Waterfalls \nToccoa Falls \n \n Toccoa Falls \nToccoa Falls: 100 yards, easy Toccoa Falls is located on the campus of Toccoa Falls College. It is nestled in the foothills of the Great Smoky Mountains and near Lake Hartwell. A meandering stream flows through the lower part of the 1,000-acre, wooded campus from the base of the 186-foot high waterfall. The short 100-yard path to the falls is wheelchair and stroller accessible. Toccoa Falls is a spectacular waterfall, higher than Niagara Falls, and is a popular tourist attraction and campus retreat. \nLearn more at stephenscountyga.gov \n \n Actuarial Section \n \nERS \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nApril 21, 2022 \n \nBoard of Trustees Employees' Retirement System of Georgia Two Northside 75, Suite 300 Atlanta, GA 30318-7701 \n \nAttention: Mr. James Potvin, Executive Director \n \nMembers of the Board: \n \nSection 47-2-26 of the law governing the operation of the Employees' Retirement System (ERS) of Georgia provides that the actuary shall make annual valuations of the contingent assets and liabilities of the Retirement System on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2021. The report indicates that annual employer contributions at the rate of 24.60% of compensation for Old Plan Members, 29.35% of compensation for New Plan Members, and 25.51% of compensation for GSEPS Members for the fiscal year ending June 30, 2024 are sufficient to support the benefits of the System. \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2021 session of the General Assembly. In addition, the results of the valuation reflect the two onetime 3% payments to certain retirees and beneficiaries effective July 2021 and January 2022. \nSince the previous valuation, a new funding policy has been adopted by the Board. The new funding policy provides for a new Transitional Unfunded Actuarial Accrued Liability (UAAL) as of June 30, 2021, which will be amortized over a closed 20-year period. All previous Transitional and Incremental UAAL bases have been rolled into this new Transitional UAAL. All future new Incremental \n \nUAAL bases established after this valuation will be amortized over closed 20-year periods as well. \nIn addition, the new funding policy provides that the Actuarial Accrued Liability and Normal Cost of the System will include a prefunded variable Cost-of-Living Adjustment (COLA) for eligible retirees and beneficiaries of the System. Under the new policy, future COLAs are provided through a profit-sharing mechanism using the System's asset performance. More information, including definitions and the methodology used in determining the annual COLA rate, is provided in the Appendix of the Funding Policy in Schedule F of this report. \nBased on the new funding policy, the long-term annual investment rate of return assumption will be 7.20%. Effective with the June 30, 2022 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the actual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of investment expenses. The assumed rate of return used in this valuation was decreased from 7.30% to 7.20%. \nThe System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level as a percent of payroll. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a level percent of payroll. Gains and losses \n \n(continued) 98 \n \n Actuarial Section \nare reflected in the total unfunded accrued liability which is being amortized on a level dollar basis in accordance with the funding policy adopted by the Board. \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports. \nWe have provided the following information and supporting schedules for the Actuarial Section of the Annual Comprehensive Financial Report: \n Summary of Actuarial Assumptions  Schedule of Active Members  Schedule of Funding Progress  Schedule of Retirees Added to and Removed from \nRolls  Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \nThe System is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with \n \naccepted actuarial procedures, based on the current provisions of the System and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System. \nWe note that as we are preparing this report, the world is in the midst of a pandemic. We have considered available information, but do not believe that there is yet sufficient data to warrant the modification of any of our assumptions at this time. \nIn order to prepare the results in this report, we have utilized appropriate actuarial models that were developed for this purpose. These models use assumptions about future contingent events along with recognized actuarial approaches to develop the needed results. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \nSincerely yours, \n \nEdward J. Koebel, EA, FCA, MAAA Chief Executive Officer \n \nCathy Turcot Principal and Managing Director \n \nBen Mobley, ASA, FCA, MAAA Consulting Actuary \n99 \n \n Actuarial Section \n \nPSERS April 21, 2022 \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nBoard of Trustees Georgia Public School Employees Retirement System Two Northside 75, Suite 300 Atlanta, GA 30318-7701 \n \nAttention: Mr. James Potvin, Executive Director \n \nMembers of the Board: \nSection 47-4-60 of the law governing the operation of the Georgia Public School Employees Retirement System (PSERS) provides that the employer contribution shall be actuarially determined and approved by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2021. Based on a monthly benefit accrual rate of $15.75, which became effective July 1, 2021, the valuation indicates that annual employer contributions of $29,531,000 or $918.35 per active member for the fiscal year ending June 30, 2024 are sufficient to support the benefits of the System. \nSince the previous valuation, the monthly benefit accrual rate has been increased from $15.50 to $15.75 per year of creditable service for members retiring on or after August 1, 2012, with an effective date of July 1, 2021. \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \n \ncurrent valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of investment expenses. Since the actual rate of return for the year ending June 30, 2021 was greater than 7.30%, the assumed rate of return used in this valuation was decreased from 7.30% to 7.20%. \nThe System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPS). The funding objective of the plan is that contribution rates over time will remain level as a dollar per active member. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a dollar per active member. Gains and losses are reflected in the total unfunded accrued liability which is being amortized as a level dollar per active member in accordance with the funding policy adopted by the Board. \n \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2021 session of the General Assembly. \nThe valuation reflects that the Board granted 1.5% costof-living adjustments (COLAs) to certain retired members on July 1, 2021 and on January 1, 2022. \nEffective with the June 30, 2017 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the actual rate of return for the fiscal year ending with the \n \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports. \nWe have provided the following information and supporting schedules for the Actuarial Section of the Annual Comprehensive Financial Report: \n Summary of Actuarial Assumptions  Schedule of Active Members  Schedule of Funding Progress  Schedule of Retirees Added to and Removed from \nRolls \n \n(continued) 100 \n \n Actuarial Section \n \n Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \n \ndata to warrant the modification of any of our assumptions prior to the next experience study. \n \nThe System is currently being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is currently operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the System and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System. \nWe note that as we are preparing this report, the world is in the midst of a pandemic. We have considered available information, but do not believe that there is yet sufficient \n \nIn order to prepare the results in this report we have utilized appropriate actuarial models that were developed for this purpose. These models use assumptions about future contingent events along with recognized actuarial approaches to develop the needed results. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \nSincerely yours, \n \nEdward J. Koebel, EA, FCA, MAAA Chief Executive Officer \n \nCathy Turcot Principal and Managing Director \n \nBen Mobley, ASA, FCA, MAAA Consulting Actuary \n \n101 \n \n Actuarial Section \n \nGJRS April 21, 2022 \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nBoard of Trustees Georgia Judicial Retirement System Two Northside 75, Suite 300 Atlanta, GA 30318-7701 \n \nAttention: Mr. James Potvin, Executive Director \n \nMembers of the Board: \nSection 47-23-21 of the law governing the operation of the Georgia Judicial Retirement System provides that the actuary shall make annual valuations of the contingent assets and liabilities of the Retirement System on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2021. The report indicates that annual employer contributions at the rate of 6.90% of compensation for the fiscal year ending June 30, 2024 are sufficient to support the benefits of the System. \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2021 session of the General Assembly. \n \nthe assumed rate of return used in the current valuation was decreased from 7.30% to 7.20%. \nThe System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level as a percent of payroll. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a level percent of payroll. Gains and losses are reflected in the total unfunded accrued liability which is negative and being amortized as a level percent of payroll in accordance with the funding policy adopted by the Board. \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports. \n \nThe results of the valuation reflect the two one-time 3% payments to certain retirees and beneficiaries effective July 2021 and January 2022. \n \nWe have provided the following information and supporting schedules for the Actuarial Section of the Annual Comprehensive Financial Report: \n \nEffective with the June 30, 2017 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the actual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of investment expenses. Since the actual rate of return for the year ending in June 30, 2021 was greater than 7.30%, \n \n Summary of Actuarial Assumptions  Schedule of Active Members  Schedule of Funding Progress  Schedule of Retirees Added to and Removed from \nRolls  Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \n \n(continued) 102 \n \n Actuarial Section \nThe System is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System. \nWe note that as we are preparing this report, the world is in the midst of a pandemic. We have considered available information, but do not believe that there is yet sufficient data to warrant the modification of any of our assumptions at this time. \n \nIn order to prepare the results in this report, we have utilized appropriate actuarial models that were developed for this purpose. These models use assumptions about future contingent events along with recognized actuarial approaches to develop the needed results. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \nSincerely yours, \n \nEdward J. Koebel, EA, FCA, MAAA Chief Executive Officer \n \nCathy Turcot Principal and Managing Director \n \nBen Mobley, ASA, FCA, MAAA Consulting Actuary \n \n103 \n \n Actuarial Section \n \nLRS April 21, 2022 \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nBoard of Trustees Legislative Retirement System of Georgia Two Northside 75, Suite 300 Atlanta, GA 30318-7701 \n \nAttention: Mr. James Potvin, Executive Director \n \nMembers of the Board: \nSection 47-6-22 of the law governing the operation of the Georgia Legislative Retirement System provides that the actuary shall make annual valuations of the contingent assets and liabilities of the Retirement System on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2021. The report indicates that no annual employer contributions for the fiscal year ending June 30, 2024 are required to support the benefits of the System. \nThe results of the valuation reflect that the Board did not grant the anticipated cost-of-living adjustments (COLAs) to retired members on July 1, 2021 and on January 1, 2022. In addition, the results of the valuation reflect the two onetime 3% payments to certain retirees and beneficiaries effective July 2021 and January 2022. \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2021 session of the General Assembly. \nEffective with the June 30, 2017 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the actual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of investment expenses. Since the actual rate of return for \n \nthe year ending June 30, 2021 was greater than 7.30%, the assumed rate of return used in this valuation was decreased from 7.30% to 7.20%. \nThe System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level as a dollar per active member. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a level dollar per active member. Gains and losses are reflected in the total unfunded accrued liability which is negative and being amortized as a level dollar per active member in accordance with the funding policy adopted by the Board. \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports. \nWe have provided the following information and supporting schedules for the Actuarial Section of the Annual Comprehensive Financial Report: \n Summary of Actuarial Assumptions  Schedule of Active Members  Schedule of Funding Progress  Schedule of Retirees Added to and Removed from \nRolls  Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \n \n(continued) 104 \n \n Actuarial Section \nThe System is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System. \nWe note that as we are preparing this report, the world is in the midst of a pandemic. We have considered available information, but do not believe that there is yet sufficient data to warrant the modification of any of our assumptions at this time. \n \nIn order to prepare the results in this report, we have utilized appropriate actuarial models that were developed for this purpose. These models use assumptions about future contingent events along with recognized actuarial approaches to develop the needed results. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \nSincerely yours, \n \nEdward J. Koebel, EA, FCA, MAAA Chief Executive Officer \n \nCathy Turcot Principal and Managing Director \n \nBen Mobley, ASA, FCA, MAAA Consulting Actuary \n \n105 \n \n Actuarial Section \n \nGMPF April 21, 2022 \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nBoard of Trustees Georgia Military Pension Fund Two Northside 75, Suite 300 Atlanta, GA 30318-7701 \n \nAttention: Mr. James Potvin, Executive Director \n \nMembers of the Board: \nSection 47-24-22 of the law governing the operation of the Georgia Military Pension Fund provides that the actuary shall make periodic valuations of the contingent assets and liabilities of the Pension Fund on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the Fund prepared as of June 30, 2021. The report indicates that annual employer contributions of $2,793,161 or $194.20 per active member for the fiscal year ending June 30, 2024 are sufficient to support the benefits of the Fund. \nIn preparing the valuation, the actuary relied on data provided by the Fund. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the Fund enacted through the 2021 session of the General Assembly. \nEffective with the June 30, 2017 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the actual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of investment expenses. Since the actual rate of return for the year ending June 30, 2021 was greater than 7.30%, the assumed rate of return used in this valuation was decreased from 7.30% to 7.20%. \n \nThe Fund is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the Fund and to reasonable expectations of anticipated experience under the Fund. The assumptions and methods used for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level as a dollar per active member. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a dollar per active member. Gains and losses are reflected in the total unfunded accrued liability which is being amortized as a level dollar per active member in accordance with the funding policy adopted by the Board. \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports. \nWe have provided the following information and supporting schedules for the Actuarial Section of the Annual Comprehensive Financial Report: \n Summary of Actuarial Assumptions  Schedule of Active Members  Schedule of Funding Progress  Schedule of Retirees Added to and Removed from \nRolls  Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \n \n(continued) 106 \n \n Actuarial Section \nThe Fund is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the Fund is operating on an actuarially sound basis. Assuming that contributions to the Fund are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the Fund may be safely anticipated. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience is performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the Fund. \nWe note that as we are preparing this report, the world is in the midst of a pandemic. We have considered available information, but do not believe that there is yet sufficient data to warrant the modification of any of our assumptions prior to the next experience study. \n \nIn order to prepare the results in this report we have utilized appropriate actuarial models that were developed for this purpose. These models use assumptions about future contingent events along with recognized actuarial approaches to develop the needed results. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \nSincerely yours, \n \nEdward J. Koebel, EA, FCA, MAAA Chief Executive Officer \n \nCathy Turcot Principal and Managing Director \n \nBen Mobley, ASA, FCA, MAAA Consulting Actuary \n \n107 \n \n Actuarial Section \n \nSEAD Post-Retirement (SEAD-OPEB) April 21, 2022 \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nBoard of Trustees Employees' Retirement System of Georgia Two Northside 75, Suite 300 Atlanta, GA 30318-7701 \n \nAttention: Mr. James Potvin, Executive Director \n \nMembers of the Board: \nChapters 47-2 and 47-19 of the Code of Georgia which govern the operation of the Georgia Employees' Group Term Life Insurance Plan provide that the actuary shall make periodic valuations of the contingent assets and liabilities of the Insurance Plan on the basis of regular interest and the tables last adopted by the Board of Trustees. In this report, we have determined liabilities for life insurance benefits payable upon death after retirement (Post-Retirement). \nWe have submitted the report giving the results of the valuation of the Plan prepared as of June 30, 2021. The report indicates that employee contributions at the rate of 0.45% of active payroll for Old Plan members of the Employees' Retirement System, and 0.23% of active payroll for New Plan members of the Employees' Retirement System, certain members of the Legislative Retirement System and certain members of the Judicial Retirement System are sufficient to support the postretirement benefits of the Plan. No employer contribution is required for the fiscal year ending June 30, 2024 for preretirement benefits. \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the Plan enacted through the 2021 session of the General Assembly. \nEffective with the June 30, 2017 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the \n \nactual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of investment expenses. Since the actual rate of return for the year ending June 30, 2021 was greater than 7.30%, the assumed rate of return used in the current valuation was decreased from 7.30% to 7.20%. \nThe Plan is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the Plan and to reasonable expectations of anticipated experience under the Plan. The assumptions and methods used for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level as a percent of payroll. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a level percent of payroll. Gains and losses are reflected in the total unfunded accrued liability which is being amortized on a level dollar basis in accordance with the funding policy adopted by the Board. In our opinion, the Plan is operating on an actuarially sound basis and the sufficiency of the funds to provide the benefits called for by the Plan may be safely anticipated. \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 74 and 75. The necessary disclosure information is provided in separate supplemental reports. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were \n \n(continued) 108 \n \n Actuarial Section \nperformed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the Plan. \nWe note that as we are preparing this report, the world is in the midst of a pandemic. We have considered available information, but do not believe that there is yet sufficient data to warrant the modification of any of our assumptions at this time. \nIn order to prepare the results in this report, we have utilized appropriate actuarial models that were developed for this purpose. These models use assumptions about future contingent events along with recognized actuarial approaches to develop the needed results. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors \n \nas the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the Plan. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \nSincerely yours, \n \nEdward J. Koebel, EA, FCA, MAAA Chief Executive Officer \n \nCathy Turcot Principal and Managing Director \n \nBen Mobley, ASA, FCA, MAAA Consulting Actuary \n \n109 \n \n Actuarial Section \nSummary of Plan Provisions \nERS  Please see Notes to Financial Statements, (2)(a), pages 33-34. PSERS  Please see Notes to Financial Statements, (2)(b), page 34-35. LRS  Please see Notes to Financial Statements, (2)(c), page 35-36. GJRS  Please see Notes to Financial Statements, (2)(d), pages 36-37. GMPF  Please see Notes to Financial Statements, (2)(e), pages 37-38. SEAD-OPEB  Please see Notes to Financial Statements, (2)(h), pages 38-39. \nThe following Boards are responsible for establishing and maintaining the funding policies of the various defined benefit pension plans administered by the System: \n Board of Trustees of the Employees' Retirement System: ERS, LRS, and GMPF  Board of Trustees of the Public School Employees Retirement System: PSERS  Board of Trustees of the Georgia Judicial Retirement System: GJRS \nThe following Board is responsible for establishing and maintaining the funding policy of the defined benefit postemployment life insurance plan administered by the System: \n Board of Directors of the State Employees' Assurance Department: SEAD-OPEB \nERS, PSERS, LRS, GJRS, and GMPF are all subject to the provisions of GASB Statement No. 67, Financial Reporting for Pension Plans, an amendment of GASB Statement No. 25 (GASB 67). All of the plans covered under GASB 67 use the Entry Age Normal actuarial cost method for both funding and financial reporting purposes. This continues a longstanding practice for all of those plans and provides a point of consistency between the funding provisions and the GASB 67 requirements. \nSEAD-OPEB is subject to the provisions of GASB 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. SEAD-OPEB uses the Entry Age Normal actuarial cost method for both funding and financial reporting purposes. \nFor all of the plans covered under GASB 67, the GASB 67 reports prepared as of June 30, 2022 were largely based on the data, assumptions, and results of the annual funding valuations as of June 30, 2021. The Total Pension Liability (TPL) for each plan, determined using the Entry Age Normal method, was then rolled forward to the June 30, 2022 measurement date. The Net Pension Liability for each plan is equal to the rolled forward TPL less the plan's net position as of June 30, 2022. \nFor the plan covered under GASB 74, the GASB 74 report prepared as of June 30, 2022 was largely based on the data, assumptions, and results of the annual funding valuation as of June 30, 2021. The Total OPEB Liability (TOL) for the plan, determined using the Entry Age Normal method, was then rolled forward to the June 30, 2022 measurement date. The Net OPEB Liability for the plan is equal to the rolled forward TOL less the plan's net position as of June 30, 2022. \nFor the pension plans' funding valuations as of June 30, 2021, the Actuarial Value of Assets is calculated using a fiveyear smoothing methodology, whereby excesses and shortfalls of actual investment income over or under the expected investment return will be recognized over the succeeding five-year periods. \nFor the life insurance plan's funding valuation as of June 30, 2021, the Actuarial Value of Assets is equal to the Fair Value of Assets as of June 30, 2021. \n(continued) 110 \n \n Actuarial Section \nSummary of Plan Provisions \nFor the funding valuations, each plan covered under GASB 67 utilizes a 7.20% assumed rate of return and a 7.20% discount rate for the calculation of the respective plans' liabilities. The Single Equivalent Interest Rate required under GASB 67 has been determined to be 7.00% by the plans' actuaries. The plan covered under GASB 74 utilizes a 7.20% assumed rate of return and a 7.20% discount rate for the calculation of the plan's liabilities. The Single Equivalent Interest Rate required under GASB 74 has been determined to be 7.00% by the plan's actuaries. \n111 \n \n Actuarial Section \nSummary of Actuarial Assumptions \nThe laws governing the Employees' Retirement System and the plans it administers require an actuary to perform an annual valuation of the soundness of the plans. In addition, the actuary must perform at least once every five years an actuarial investigation of the mortality, service, and compensation experience of the members and beneficiaries of the System. The latest valuations were performed as of June 30, 2021 based on actuarial assumptions approved by the ERS Board, PSERS Board, GJRS Board, and SEAD Board during the last experience study on December 17, 2020. \nThe more pertinent facts and significant assumptions underlying the computations included in the June 30, 2021 reports are as follows: \n \nValuation Date Actuarial Cost Method \nAmortization Method \n \nERS \n \nPSERS \n \nGJRS \n \nJune 30, 2021 Entry age \n \nJune 30, 2021 Entry age \n \nJune 30, 2021 Entry age \n \nLevel dollar, closed Level dollar, closed \n \nLevel percent of pay, closed \n \nLRS \nJune 30, 2021 Entry age \nLevel dollar, open \n \nGMPF \nJune 30, 2021 Entry age \nLevel dollar, closed \n \nAmortization Period \nActuarial Asset Valuation Method \nInvestment Rate of Return Inflation Rate Projected Salary Increases COLA \n \n20.0 years \n \n17.5 years \n \n13.7 years \n \nInfinite \n \n13.0 years \n \nThe actuarial value of assets was based on the total fair value income of investments, with the excess or shortfall of actual investment income over or under the expected investment return smoothed over five years. One-fifth of the excess or shortfall is recognized each year for five years. \n \n7.20% 2.50% 3.00 - 6.75% 1.05% annually \n \n7.20% 2.50% \nn/a 1.50% Semi-annually \n \n7.20% 2.50% 3.75% None \n \n7.20% 2.50% \nn/a 1.50% Semi-annually \n \n7.20% 2.50% \nn/a None \n \nValuation Date Actuarial Cost Method \nAmortization Method \nAmortization Period \nActuarial Asset Valuation Method \nInvestment Rate of Return Inflation Rate Projected Salary Increases \nERS GJRS LRS COLA \n \nSEAD-OPEB June 30, 2021 \nEntry age Level dollar, open \nInfinite \nFair Value of Assets \n7.20% 2.50% \n3.00-6.75% 3.75% n/a None \n \n(continued) 112 \n \n Actuarial Section \nSummary of Actuarial Assumptions \nRates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability) ERS \n \nRepresentative values of the assumed annual rates of separation other than retirement for non-law enforcement officers are as follows. Special rates of separation apply to law enforcement officers. \n \nAnnual Rates of Annual Rates of \n \nDeath \n \nDisability \n \nAge Men Women Men Women \n \n20 .0370 % .0130 % -- % -- % \n \n25 .0280 .0090 \n \n-- \n \n-- \n \n30 .0360 .0150 \n \n.010 \n \n.005 \n \n35 .0470 .0230 \n \n.040 \n \n.010 \n \n40 .0660 .0360 \n \n.200 \n \n.085 \n \n45 .0980 .0560 \n \n.375 \n \n.215 \n \n50 .1490 .0830 \n \n.625 \n \n.365 \n \n55 .2190 .1230 \n \n.875 \n \n.565 \n \n60 .3190 .1860 \n \n-- \n \n-- \n \n65 .4680 .2960 \n \n-- \n \n-- \n \nAnnual Rates of Withdrawal Years of Service \n \n0-4 \n \n5-9 \n \n10 \u0026 over \n \nAge \n \nMen Women Men Women Men Women \n \n20 \n \n40.00 % 35.00 % \n \n-- % \n \n-- % \n \n-- % \n \n-- % \n \n25 \n \n30.00 27.00 16.25 18.00 \n \n-- \n \n-- \n \n30 \n \n25.00 23.00 12.50 12.50 \n \n8.00 \n \n9.00 \n \n35 \n \n23.00 20.00 10.50 10.25 \n \n6.25 \n \n6.50 \n \n40 \n \n20.00 18.00 \n \n9.50 \n \n9.00 \n \n4.75 \n \n5.25 \n \n45 \n \n20.00 17.00 \n \n8.50 \n \n8.00 \n \n4.00 \n \n4.25 \n \n50 \n \n17.00 16.00 \n \n7.25 \n \n7.50 \n \n4.50 \n \n4.25 \n \n55 \n \n15.00 15.00 \n \n6.75 \n \n7.25 \n \n4.75 \n \n4.25 \n \n60 \n \n14.50 15.50 \n \n5.50 \n \n7.00 \n \n-- \n \n-- \n \n65 \n \n14.50 16.50 12.50 12.00 \n \n-- \n \n-- \n \n(continued) 113 \n \n Actuarial Section \nSummary of Actuarial Assumptions \nRates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability) PSERS \n \nAnnual Rates of Annual \n \nDeath \n \nRates of \n \nDisability \n \nAge Men Women Both \n \n20 .0410 % .0130 % \n \n-- % \n \n25 .0410 .0120 \n \n-- \n \n30 .0520 .0190 \n \n-- \n \n35 .0680 .0300 \n \n.0018 \n \n40 .0960 .0470 \n \n.0110 \n \n45 .1430 .0720 \n \n.0330 \n \n50 .2180 .1070 \n \n.0770 \n \n55 .3200 .1570 \n \n.2250 \n \n60 .4660 .2380 \n \n.2500 \n \n65 .6820 .3800 \n \n-- \n \nAnnual Rates of Withdrawal Years of Service \n \n0-4 \n \n5-9 \n \n10 \u0026 over \n \nAge Men Women Men Women Men Women \n \n20 34.00 % 35.00 % \n \n-- % \n \n-- % \n \n-- % \n \n-- % \n \n25 31.00 31.00 19.00 20.00 \n \n-- \n \n-- \n \n30 27.50 25.00 17.00 16.50 12.50 10.00 \n \n35 24.50 22.00 15.50 15.00 \n \n9.00 10.00 \n \n40 22.00 20.00 13.50 14.00 \n \n8.25 \n \n9.00 \n \n45 21.00 18.00 12.50 12.00 \n \n7.00 \n \n8.00 \n \n50 18.50 16.25 11.00 10.00 \n \n7.00 \n \n7.00 \n \n55 15.25 13.50 \n \n9.00 \n \n9.00 \n \n6.00 \n \n6.00 \n \n60 13.50 13.00 \n \n9.00 \n \n9.00 \n \n-- \n \n-- \n \n(continued) 114 \n \n Actuarial Section \nSummary of Actuarial Assumptions \nRates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability) GJRS \n \nAnnual Rates of \n \nWithdrawal \n \nDeath \n \nDisability \n \nAge \n \nBoth \n \nMen \n \nWomen \n \nBoth \n \n20 \n \n-- % \n \n.0370 % \n \n.0130 % \n \n-- % \n \n25 \n \n5.00 \n \n.0280 \n \n.0090 \n \n.0125 \n \n30 \n \n5.00 \n \n.0360 \n \n.0150 \n \n.0250 \n \n35 \n \n5.00 \n \n.0470 \n \n.0230 \n \n.0375 \n \n40 \n \n4.00 \n \n.0660 \n \n.0360 \n \n.0500 \n \n45 \n \n3.50 \n \n.0980 \n \n.0560 \n \n.0875 \n \n50 \n \n2.75 \n \n.1490 \n \n.0830 \n \n.1250 \n \n55 \n \n2.75 \n \n.2190 \n \n.1230 \n \n.2250 \n \n60 \n \n2.50 \n \n.3190 \n \n.1860 \n \n.3625 \n \n65 \n \n2.50 \n \n.4680 \n \n.2960 \n \n.5875 \n \nLRS \n \nAnnual Rates of \n \nWithdrawal \n \nDeath \n \nAge \n \nBoth \n \nMen Women \n \n20 \n \n-- % .0370 % .0130 % \n \n25 \n \n9.0 \n \n.0280 .0090 \n \n30 \n \n9.0 \n \n.0360 .0150 \n \n35 \n \n9.0 \n \n.0470 .0230 \n \n40 \n \n10.0 \n \n.0660 .0360 \n \n45 \n \n11.0 \n \n.0980 .0560 \n \n50 \n \n9.0 \n \n.1490 .0830 \n \n55 \n \n8.0 \n \n.2190 .1230 \n \n60 \n \n8.0 \n \n.3190 .1860 \n \n65 \n \n8.0 \n \n.4680 .2960 \n \nGMPF \n \nRates of Withdrawal from Active Service \n \nService 2 or Less 3-7 8-9 10-14 15-19 20 or more \n \nRates 11.5 % 17.0 13.0 11.5 \n8.5 15.5 \n \nAge \n \nRates of Death \n \nMen \n \nWomen \n \n20 \n \n.0370 % .0130 % \n \n25 \n \n.0280 \n \n.0090 \n \n30 \n \n.0360 \n \n.0150 \n \n35 \n \n.0470 \n \n.0230 \n \n40 \n \n.0660 \n \n.0360 \n \n45 \n \n.0980 \n \n.0560 \n \n50 \n \n.1490 \n \n.0830 \n \n55 \n \n.2190 \n \n.1230 \n \n60 \n \n.3190 \n \n.1860 \n \n65 \n \n.4680 \n \n.2960 \n \n(continued) 115 \n \n Actuarial Section \nSummary of Actuarial Assumptions \nRates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability) \nSEAD-OPEB \n \nAll Groups \n \nERS \n \nGJRS \n \nAnnual Rates of Death \n \nAnnual Rates of Disability \n \nAnnual Rates of Disability \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nBoth \n \n20 \n \n.0370 % .0130 % \n \n-- % \n \n-- % \n \n-- % \n \n25 \n \n.0280 \n \n.0090 \n \n-- \n \n-- \n \n.0125 \n \n30 \n \n.0360 \n \n.0150 \n \n.0100 .0050 \n \n.0250 \n \n35 \n \n.0470 \n \n.0230 \n \n.0400 .0100 \n \n.0375 \n \n40 \n \n.0660 \n \n.0360 \n \n.2000 .0850 \n \n.0500 \n \n45 \n \n.0980 \n \n.0560 \n \n.3750 .2150 \n \n.0875 \n \n50 \n \n.1490 \n \n.0830 \n \n.6250 .3650 \n \n.1250 \n \n55 \n \n.2190 \n \n.1230 \n \n.8750 .5650 \n \n.2250 \n \n60 \n \n.3190 \n \n.1860 \n \n-- \n \n-- \n \n.3625 \n \n65 \n \n.4680 \n \n.2960 \n \n-- \n \n-- \n \n.5875 \n \nERS \n \nLRS \n \nGJRS \n \nAnnual Rates of Withdrawal Years of Service \n \nAnnual Rates Annual Rates of Withdrawal of Withdrawal \n \n0-4 \n \n5-9 \n \n10 \u0026 over \n \nAge Men Women Men Women Men Women \n \n20 40.00 % 35.00 % \n \n-- % \n \n-- % \n \n-- % \n \n-- % \n \n25 30.00 \n \n27.00 \n \n16.25 \n \n18.00 \n \n-- \n \n-- \n \n30 25.00 \n \n23.00 \n \n12.50 \n \n12.50 \n \n8.00 \n \n9.00 \n \n35 23.00 \n \n20.00 \n \n10.50 \n \n10.25 \n \n6.25 \n \n6.50 \n \n40 20.00 \n \n18.00 \n \n9.50 \n \n9.00 \n \n4.75 \n \n5.25 \n \n45 20.00 \n \n17.00 \n \n8.50 \n \n8.00 \n \n4.00 \n \n4.25 \n \n50 17.00 \n \n16.00 \n \n7.25 \n \n7.50 \n \n4.50 \n \n4.25 \n \n55 15.00 \n \n15.00 \n \n6.75 \n \n7.25 \n \n4.75 \n \n4.25 \n \n60 14.50 \n \n15.50 \n \n5.50 \n \n7.00 \n \n-- \n \n-- \n \n65 14.50 \n \n16.50 \n \n12.50 \n \n12.00 \n \n-- \n \n-- \n \nBoth 9.00 % 9.00 9.00 9.00 \n10.00 11.00 \n9.25 8.00 8.00 8.00 \n \nBoth 5.00 % 5.00 5.00 5.00 4.00 3.50 2.75 2.75 2.50 2.50 \n \n(continued) 116 \n \n Actuarial Section \nSummary of Actuarial Assumptions \nAnnual Rates of Retirement ERS \n \nOld Plan \n \nEarly Retirement Age 60 or 30 years \n \n34 years \n \nMore than 34 years \n \nAge \n \nMen Women Men Women Men Women Men Women \n \n50 \n \n2.0 % \n \n2.0 % \n \n7.5 % \n \n6.0 % 100.0 % 100.0 % 90.0 % 100.0 % \n \n52 \n \n2.0 \n \n2.0 \n \n7.5 \n \n6.0 \n \n100.0 \n \n100.0 \n \n90.0 \n \n100.0 \n \n55 \n \n3.0 \n \n3.5 \n \n7.5 \n \n10.0 \n \n100.0 \n \n100.0 \n \n75.0 \n \n90.0 \n \n57 \n \n3.0 \n \n5.0 \n \n10.5 \n \n10.0 \n \n100.0 \n \n100.0 \n \n70.0 \n \n70.0 \n \n60 \n \n-- \n \n-- \n \n15.0 \n \n20.0 \n \n97.5 \n \n95.0 \n \n40.0 \n \n55.0 \n \n62 \n \n-- \n \n-- \n \n32.0 \n \n40.0 \n \n97.5 \n \n95.0 \n \n40.0 \n \n65.0 \n \n65 \n \n-- \n \n-- \n \n35.0 \n \n40.0 \n \n35.0 \n \n40.0 \n \n35.0 \n \n40.0 \n \n67 \n \n-- \n \n-- \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n70 \n \n-- \n \n-- \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n75 \n \n-- \n \n-- \n \n100.0 \n \n100.0 \n \n100.0 \n \n100.0 \n \n100.0 \n \n100.0 \n \nNew Plan and GSEPS \n \nEarly Retirement \n \nNormal Retirement \n \nAge \n \nMen \n \nWomen \n \nMen* \n \nWomen** \n \n50 \n \n5.0 % \n \n3.8 % \n \n60.0 % \n \n42.0 % \n \n52 \n \n5.0 \n \n3.8 \n \n50.0 \n \n42.0 \n \n55 \n \n6.0 \n \n5.8 \n \n50.0 \n \n40.0 \n \n57 \n \n6.0 \n \n7.3 \n \n45.0 \n \n37.0 \n \n60 \n \n-- \n \n-- \n \n25.0 \n \n28.0 \n \n62 \n \n-- \n \n-- \n \n37.5 \n \n37.5 \n \n65 \n \n-- \n \n-- \n \n32.0 \n \n33.0 \n \n67 \n \n-- \n \n-- \n \n32.0 \n \n32.0 \n \n70 \n \n-- \n \n-- \n \n30.0 \n \n30.0 \n \n75 \n \n-- \n \n-- \n \n100.0 \n \n100.0 \n \n*An additional 20% are assumed to retire in the first year eligible for unreduced retirement with 30 years of service before age 60. \n**An additional 25% for ages below 53 and 20% for ages 53 to 59 are assumed to retire in the first year eligible for unreduced retirement with 30 years of service before age 60. \n \n(continued) 117 \n \n Actuarial Section \nSummary of Actuarial Assumptions \nAnnual Rates of Retirement PSERS \n \nAge Annual Rate of Retirement \n \nAge \n \nAnnual Rate of Retirement \n \n60 \n \n12.0 % \n \n71 \n \n25.0 % \n \n61 \n \n12.0 \n \n72 \n \n25.0 \n \n62 \n \n21.0 \n \n73 \n \n25.0 \n \n63 \n \n17.0 \n \n74 \n \n25.0 \n \n64 \n \n15.0 \n \n75 \n \n25.0 \n \n65 \n \n26.0 \n \n76 \n \n25.0 \n \n66 \n \n26.0 \n \n77 \n \n25.0 \n \n67 \n \n22.0 \n \n78 \n \n25.0 \n \n68 \n \n22.0 \n \n79 \n \n25.0 \n \n69 \n \n23.5 \n \n80 \u0026 over \n \n100.0 \n \n70 \n \n25.0 \n \nGJRS LRS \n \nAge \n60 61-64 \n65 66-67 68-69 70-77 \n78 \n \nAnnual Rate of Retirement \n15.0 % 10.0 13.0 15.0 18.0 25.0 100.0 \n \nAge Annual Rate of Retirement \n \n60 \n \n8.0 % \n \n61 \n \n8.0 \n \n62 \n \n12.0 \n \n63 \n \n8.0 \n \n64 \n \n8.0 \n \n65 \n \n10.0 \n \nAge 66 67 68 69 70-79 80 \n \nAnnual Rate of Retirement 10.0 % 10.0 10.0 15.0 15.0 \n100.0 \n \n(continued) 118 \n \n Actuarial Section \nSummary of Actuarial Assumptions \nAnnual Rates of Retirement GMPF \n \nAge \n60 61 62 63 64 65 \u0026 over \n \nAnnual Rate of Retirement \n75.0 % 75.0 60.0 50.0 50.0 100.0 \n \nSEAD-OPEB \nERS Members \nAge 50 52 55 57 60 62 65 67 70 75 \n \nOld Plan \n \nEarly Retirement Age 60 or 30 years \n \nMen 2.0 % 2.0 3.0 3.5 -- -- -- -- -- -- \n \nWomen 2.0 % 2.0 3.5 5.0 -- -- -- -- -- -- \n \nMen 7.5 % 7.5 7.5 \n10.5 15.0 32.0 35.0 35.0 35.0 100.0 \n \nWomen 6.0 % 6.0 \n10.0 10.0 20.0 40.0 40.0 35.0 35.0 100.0 \n \n34 years \n \nMore than 34 years \n \nMen 100.0 % 100.0 100.0 100.0 \n97.5 97.5 35.0 35.0 35.0 100.0 \n \nWomen 100.0 % 100.0 100.0 100.0 95.0 95.0 40.0 35.0 35.0 100.0 \n \nMen 90.0 % 90.0 75.0 70.0 40.0 40.0 35.0 35.0 35.0 100.0 \n \nWomen 100.0 % 100.0 90.0 70.0 55.0 65.0 40.0 35.0 35.0 100.0 \n \nNew Plan and GSEPS \n \nEarly Retirement \n \nNormal Retirement \n \nAge \n \nMen \n \nWomen \n \nMen* \n \nWomen** \n \n50 \n \n5.0 % \n \n3.8 % \n \n60.0 % \n \n42.0 % \n \n52 \n \n5.0 \n \n3.8 \n \n50.0 \n \n42.0 \n \n55 \n \n6.0 \n \n5.8 \n \n50.0 \n \n40.0 \n \n57 \n \n6.0 \n \n7.3 \n \n45.0 \n \n37.0 \n \n60 \n \n-- \n \n-- \n \n25.0 \n \n28.0 \n \n62 \n \n-- \n \n-- \n \n37.5 \n \n37.5 \n \n65 \n \n-- \n \n-- \n \n32.0 \n \n33.0 \n \n67 \n \n-- \n \n-- \n \n32.0 \n \n32.0 \n \n70 \n \n-- \n \n-- \n \n30.0 \n \n30.0 \n \n75 \n \n-- \n \n-- \n \n100.0 \n \n100.0 \n \n*An additional 20% of active male New Plan and GSEPS members are expected to retire in the year in which they attain 30 years of service before age 60. **An additional 25% of active female New Plan and GSEPS members less than age 53 and 20% for ages 53 to 59 are expected to retire in the year in which they attain 30 years of service before age 60. \n \n(continued) 119 \n \n Actuarial Section \nSummary of Actuarial Assumptions \n \nAnnual Rates of Retirement LRS Members \n \nAge Annual Rate of Retirement \n \n60 \n \n8.0 % \n \n61 \n \n8.0 \n \n62 \n \n12.0 \n \n63 \n \n8.0 \n \n64 \n \n8.0 \n \n65 \n \n10.0 \n \nAge \n66 67 68 69 70-79 80 \n \nAnnual Rate of Retirement \n10.0 % 10.0 10.0 15.0 15.0 100.0 \n \nGJRS Members \n \nAge \n60 61-64 \n65 66-67 68-69 70-77 \n78 \n \nAnnual Rate of Retirement \n15.0 % 10.0 13.0 15.0 18.0 25.0 100.0 \n \n(continued) 120 \n \n Actuarial Section \nSummary of Actuarial Assumptions \nAnnual Rates of Death After Retirement1 For all plans except PSERS, the Pub-2010 Family of Tables projected generationally with MP-2019 Scale and with further adjustments are used for post-retirement mortality assumptions as follows: \n \nParticipant Type Service Retirees \n \nMembership Table \n \nSet Forward (+)/ Setback (-) \n \nAdjustment To Rates \n \nGeneral Healthy Annuitant \n \nMale: +1; Female: +1 Male: 105%; Female: 108% \n \nDisability Retirees General Disabled Male: -3; Female: 0 Male: 103%; Female: 106% \n \nBeneficiaries \n \nGeneral Contingent Survivors \n \nMale: +2; Female: +2 Male: 106%; Female: 105% \n \nFor PSERS, the Pub-2010 Family of Tables projected generationally with MP-2019 Scale and with further adjustments are used for post-retirement mortality assumptions as follows: \n \nParticipant Type Service Retirees Disability Retirees \nBeneficiaries \n \nMembership Table \nGeneral Healthy Below-Median \nAnnuitant \n \nSet Forward (+)/ Setback (-) \nMale: +2; Female: +2 \n \nAdjustment To Rates Male: 101%; Female: 103% \n \nGeneral Disabled Male: -3; Female: 0 Male: 103%; Female: 106% \n \nGeneral BelowMedian Contingent Male: +2; Female: +2 Male: 104%; Female: 99% \nSurvivors \n \nERS \n \nService Retirement Disability Retirement \n \nBeneficiaries \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \n50 \n \n0.3371 % 0.2516 % 1.2576 % 1.5720 % 0.7918 % 0.3843 % \n \n55 \n \n0.4861 \n \n0.3251 \n \n1.8725 \n \n1.8465 \n \n0.9402 \n \n0.5334 \n \n60 \n \n0.6941 \n \n0.4493 \n \n2.3484 \n \n2.0734 \n \n1.1978 \n \n0.7529 \n \n65 \n \n1.0532 \n \n0.7366 \n \n2.7573 \n \n2.3914 \n \n1.7257 \n \n1.1057 \n \n70 \n \n1.7882 \n \n1.2863 \n \n3.4536 \n \n3.0337 \n \n2.7157 \n \n1.7000 \n \n75 \n \n3.1448 \n \n2.2799 \n \n4.4743 \n \n4.2432 \n \n4.3036 \n \n2.7500 \n \n80 \n \n5.6427 \n \n4.0900 \n \n6.0986 \n \n6.3674 \n \n6.8879 \n \n4.6778 \n \n85 \n \n10.0958 \n \n7.6043 \n \n8.8220 \n \n9.8909 11.3049 \n \n8.4315 \n \n90 \n \n16.9785 13.8596 12.9831 14.4849 18.6083 14.6496 \n \n1Base mortality rates as of 2010 before application of the improvement scale \n \n(continued) 121 \n \n Actuarial Section \nSummary of Actuarial Assumptions \nAnnual Rates of Death After Retirement1 PSERS \n \nService Retirement Disability Retirement \n \nBeneficiaries \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \n50 \n \n0.7989 % 0.4532 % 1.2576 % 1.5720 % 0.9984 % 0.5930 % \n \n55 \n \n0.9837 \n \n0.5037 \n \n1.8725 \n \n1.8465 \n \n1.1523 \n \n0.7742 \n \n60 \n \n1.1726 \n \n0.6015 \n \n2.3484 \n \n2.0734 \n \n1.4258 \n \n1.0237 \n \n65 \n \n1.5736 \n \n0.8827 \n \n2.7573 \n \n2.3914 \n \n1.9978 \n \n1.4147 \n \n70 \n \n2.5785 \n \n1.5296 \n \n3.4536 \n \n3.0337 \n \n3.0680 \n \n2.0731 \n \n75 \n \n4.3329 \n \n2.6770 \n \n4.4743 \n \n4.2432 \n \n4.7414 \n \n3.1878 \n \n80 \n \n7.4043 \n \n4.7679 \n \n6.0986 \n \n6.3674 \n \n7.3944 \n \n5.1450 \n \n85 \n \n12.4301 \n \n8.7849 \n \n8.8220 \n \n9.8909 11.8154 \n \n8.7684 \n \n90 \n \n19.3173 15.3594 12.9831 14.4849 19.0320 14.3778 \n \nGJRS \n \nService Retirement Disability Retirement \n \nBeneficiaries \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \n50 \n \n0.3371 % 0.2516 % 1.2576 % 1.5720 % 0.7918 % 0.3843 % \n \n55 \n \n0.4861 \n \n0.3251 \n \n1.8725 \n \n1.8465 \n \n0.9402 \n \n0.5334 \n \n60 \n \n0.6941 \n \n0.4493 \n \n2.3484 \n \n2.0734 \n \n1.1978 \n \n0.7529 \n \n65 \n \n1.0532 \n \n0.7366 \n \n2.7573 \n \n2.3914 \n \n1.7257 \n \n1.1057 \n \n70 \n \n1.7882 \n \n1.2863 \n \n3.4536 \n \n3.0337 \n \n2.7157 \n \n1.7000 \n \n75 \n \n3.1448 \n \n2.2799 \n \n4.4743 \n \n4.2432 \n \n4.3036 \n \n2.7500 \n \n80 \n \n5.6427 \n \n4.0900 \n \n6.0986 \n \n6.3674 \n \n6.8879 \n \n4.6778 \n \n85 \n \n10.0958 \n \n7.6043 \n \n8.8220 \n \n9.8909 11.3049 \n \n8.4315 \n \n90 \n \n16.9785 13.8596 12.9831 14.4849 18.6083 14.6496 \n \nLRS \n \nService Retirement Disability Retirement \n \nBeneficiaries \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \n50 \n \n0.3371 % 0.2516 % 1.2576 % 1.5720 % 0.7918 % 0.3843 % \n \n55 \n \n0.4861 \n \n0.3251 \n \n1.8725 \n \n1.8465 \n \n0.9402 \n \n0.5334 \n \n60 \n \n0.6941 \n \n0.4493 \n \n2.3484 \n \n2.0734 \n \n1.1978 \n \n0.7529 \n \n65 \n \n1.0532 \n \n0.7366 \n \n2.7573 \n \n2.3914 \n \n1.7257 \n \n1.1057 \n \n70 \n \n1.7882 \n \n1.2863 \n \n3.4536 \n \n3.0337 \n \n2.7157 \n \n1.7000 \n \n75 \n \n3.1448 \n \n2.2799 \n \n4.4743 \n \n4.2432 \n \n4.3036 \n \n2.7500 \n \n80 \n \n5.6427 \n \n4.0900 \n \n6.0986 \n \n6.3674 \n \n6.8879 \n \n4.6778 \n \n85 \n \n10.0958 \n \n7.6043 \n \n8.8220 \n \n9.8909 11.3049 \n \n8.4315 \n \n90 \n \n16.9785 13.8596 12.9831 14.4849 18.6083 14.6496 \n \n1Base mortality rates as of 2010 before application of the improvement scale \n \n122 \n \n(continued) \n \n Actuarial Section \nSummary of Actuarial Assumptions \nAnnual Rates of Death After Retirement1 GMPF \nAge 50 55 60 65 70 75 80 85 90 \n \nService Retirement \n \nMen \n \nWomen \n \n0.3371 % 0.2516 % \n \n0.4861 \n \n0.3251 \n \n0.6941 \n \n0.4493 \n \n1.0532 \n \n0.7366 \n \n1.7882 \n \n1.2863 \n \n3.1448 \n \n2.2799 \n \n5.6427 \n \n4.0900 \n \n10.0958 \n \n7.6043 \n \n16.9785 13.8596 \n \nSEAD-OPEB \n \nService Retirement Disability Retirement \n \nBeneficiaries \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \n50 \n \n0.3371 % 0.2516 % 1.2576 % 1.5720 % 0.7918 % 0.3843 % \n \n55 \n \n0.4861 \n \n0.3251 \n \n1.8725 \n \n1.8465 \n \n0.9402 \n \n0.5334 \n \n60 \n \n0.6941 \n \n0.4493 \n \n2.3484 \n \n2.0734 \n \n1.1978 \n \n0.7529 \n \n65 \n \n1.0532 \n \n0.7366 \n \n2.7573 \n \n2.3914 \n \n1.7257 \n \n1.1057 \n \n70 \n \n1.7882 \n \n1.2863 \n \n3.4536 \n \n3.0337 \n \n2.7157 \n \n1.7000 \n \n75 \n \n3.1448 \n \n2.2799 \n \n4.4743 \n \n4.2432 \n \n4.3036 \n \n2.7500 \n \n80 \n \n5.6427 \n \n4.0900 \n \n6.0986 \n \n6.3674 \n \n6.8879 \n \n4.6778 \n \n85 \n \n10.0958 \n \n7.6043 \n \n8.8220 \n \n9.8909 11.3049 \n \n8.4315 \n \n90 \n \n16.9785 13.8596 12.9831 14.4849 18.6083 14.6496 \n \n1Base mortality rates as of 2010 before application of the improvement scale \n \n123 \n \n Actuarial Section \nActive Members \nERS \n \nYear 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 \n \nEmployers 723 716 425 423 425 427 419 420 417 406 \n \nActive Members 63,942 61,550 60,486 60,416 59,766 60,906 60,405 59,207 57,059 53,330 \n \nAnnual Payroll (in thousands) $ 2,414,884 \n2,335,773 2,315,625 2,352,920 2,384,358 2,546,492 2,634,129 2,611,965 2,612,773 2,477,691 \n \nAverage Pay $ 37,767 \n37,949 38,284 38,945 39,895 41,810 43,608 44,116 45,791 46,460 \n \nChange 0.4 % 0.5 0.9 1.7 2.4 4.8 4.3 1.2 3.8 1.5 \n \nPSERS PSERS is not a compensation based plan. \n \nYear \n2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 \n \nEmployers \n189 187 184 183 182 184 184 187 186 186 \n \nActive Members \n38,654 37,361 36,096 35,477 34,866 35,509 34,953 34,767 34,736 32,157 \n \nGJRS \nYear 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 \n \nEmployers 96 97 92 91 93 94 93 93 92 91 \n \nActive Members 503 506 513 516 526 527 527 521 522 538 \n \nAnnual Payroll (in thousands) \n \n$ \n \n51,898 \n \n52,807 \n \n53,628 \n \n54,272 \n \n57,401 \n \n59,695 \n \n60,572 \n \n60,532 \n \n61,544 \n \n63,421 \n \nAverage Pay $ 103,177 \n104,362 104,539 105,178 109,128 113,273 114,937 116,184 117,900 117,883 \n \nChange 0.0 % 1.1 0.2 0.6 3.8 3.8 1.5 1.1 1.5 (0.0) \n \n(continued) 124 \n \n Actuarial Section \nActive Members \nLRS \n \nLRS is not a compensation based plan. GMPF \n \nYear \n2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 \n \nEmployers \n1 1 1 1 1 1 1 1 1 1 \n \nActive Members \n220 223 222 218 224 222 222 221 219 216 \n \nGMPF is not a compensation based plan. SEAD-OPEB \n \nYear \n2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 \n \nEmployers \n1 1 1 1 1 1 1 1 1 1 \n \nActive Members \n13,526 13,573 13,469 13,754 13,850 13,037 13,804 13,711 14,095 14,383 \n \nYear \n2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 \n \nEmployers \n815 811 482 481 477 455 459 456 444 412 \n \nActive Members \n49,261 43,512 39,101 35,189 32,076 29,024 26,224 23,499 21,144 18,875 \n \nNote: Payroll data on page 124 for fiscal year 2021 will not equal that which is presented in the Financial section in the Schedules of Employers' and Nonemployer Contributions on pages 67-68. Valuation data at that time was a snapshot of the valuation date, annualized for new hires, but does not include those who terminated during the year. \n \n125 \n \n Actuarial Section \nMember and Employer Contribution Rates \n \nERS \n \nYear \n2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nMember \n1.25 % 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 \n \nEmployer Rates \n \nOld Plan* New Plan \n \n14.90 % 18.46 21.96 24.72 24.69 24.69 24.66 24.66 24.66 24.63 \n \n14.90 % 18.46 21.96 24.72 24.69 24.69 24.66 24.66 24.66 24.63 \n \nGSEPS \n11.54 % 15.18 18.87 21.69 21.69 21.66 21.66 21.64 21.57 21.57 \n \n* Old Plan rate includes an employer pick-up of employee contributions. PSERS \n \nGJRS \n \nYear \n2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nPre 7/1/12 Member \n$ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year \n \nPost 7/1/12 Member \n \nEmployer \n \n$ 90 per year $ 90 per year $ 90 per year $ 90 per year $ 90 per year $ 90 per year $ 90 per year $ 90 per year $ 90 per year $ 90 per year \n \n$ 24,829,000 27,160,000 28,461,000 28,580,000 26,277,000 29,276,000 30,263,000 32,496,000 30,264,000 32,491,000 \n \nYear \n2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nMember \n7.50 % 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 \n \nEmployer \n3.90 % 4.23 6.98 12.19 10.48 7.17 7.83 9.13 8.38 8.81 \n \n126 \n \n(continued) \n \n Actuarial Section \nMember and Employer Contribution Rates \nLRS \n \nYear \n \nMember \n \n2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \n8.50 % 8.50 8.50 8.50 8.50 8.50 8.50 8.50 8.50 8.50 \n \n* Member rate includes an employer pick-up of employee contributions. \n \nGMPF \n \nEmployer \n$ 128,000 45,000 -- -- -- -- -- -- -- -- \n \nYear \n2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nMember \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n \nEmployer \n$ 1,703,000 1,892,000 1,893,369 1,989,530 2,017,875 2,377,312 2,537,272 2,611,590 2,683,883 2,697,265 \n \nSEAD-OPEB \n \nYear \n2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nMember - Old Plan \n0.45 % 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45 \n \nMember - New Plan, LRS, GJRS \n0.23 % 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.23 \n \nEmployer \n0.27 % -- -- -- -- -- -- -- -- -- \n \n127 \n \n Actuarial Section \nSchedules of Funding Progress - Defined Benefit Plans \n(in thousands) \n \nEmployees' Retirement System Public School Employees Retirement System1 Legislative Retirement System Georgia Judicial Retirement System \n \nActuarial Valuation \nDate \n6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 \n \n$ \n** * * ** * \n \n6/30/2012 6/30/2013 6/30/2014 6/30/2015 ** 6/30/2016 6/30/2017 * 6/30/2018 * 6/30/2019 6/30/2020 ** 6/30/2021 * \n \n6/30/2012 6/30/2013 6/30/2014 6/30/2015 ** 6/30/2016 6/30/2017 * 6/30/2018 * 6/30/2019 6/30/2020 ** 6/30/2021 * \n \n6/30/2012 6/30/2013 6/30/2014 6/30/2015 ** 6/30/2016 6/30/2017 * 6/30/2018 * 6/30/2019 6/30/2020 ** 6/30/2021 * \n \nActuarial Value of Plan Assets \n(a) \n12,260,595 12,129,804 12,376,120 12,675,649 12,854,518 13,088,185 13,412,046 13,481,219 13,556,622 14,383,600 \n710,915 727,268 765,450 805,277 834,554 865,786 905,046 931,032 961,431 1,042,196 \n28,990 29,481 30,538 31,635 32,171 32,913 33,871 34,153 34,661 37,078 \n335,225 351,889 373,560 396,399 418,412 439,828 461,787 474,003 487,591 525,929 \n \nActuarial Accrued Liability (AAL) Entry-Age \n(b) \n$ 16,777,922 16,982,449 16,991,963 17,099,527 17,199,688 17,514,898 17,812,441 17,829,220 18,375,797 20,085,695 \n895,324 910,256 924,365 967,409 988,883 1,035,935 1,081,184 1,108,658 1,156,997 1,207,955 \n24,966 24,904 24,913 25,690 25,533 25,674 25,905 25,714 25,543 25,838 \n308,862 335,792 343,428 350,298 376,740 407,607 424,724 440,664 458,188 482,619 \n \nUnfunded AAL/ (Funded Excess) \n(b-a) \n \n$ \n \n4,517,327 \n \n4,852,645 \n \n4,615,843 \n \n4,423,878 \n \n4,345,170 \n \n4,426,713 \n \n4,400,395 \n \n4,348,001 \n \n4,819,175 \n \n5,702,095 \n \n184,409 182,988 158,915 162,132 154,329 170,149 176,138 177,626 195,566 165,759 \n \n(4,024) \n(4,577) (5,624) (5,945) (6,638) (7,239) (7,966) (8,439) (9,118) (11,240) \n \n(26,363) (16,097) (30,132) (46,101) (41,672) (32,221) (37,063) (33,339) (29,403) (43,310) \n \nFunded Ratio (a/b) \n73.1 % $ 71.4 72.8 74.1 74.7 74.7 75.3 75.6 73.8 71.6 \n79.4 79.9 82.8 83.2 84.4 83.6 83.7 84.0 83.1 86.3 \n116.1 118.4 122.6 123.1 126.0 128.2 130.7 132.8 135.7 143.5 \n108.5 104.8 108.8 113.2 111.1 107.9 108.7 107.6 106.4 109.0 \n \nAnnual Covered Payroll \n(c) \n2,414,884 2,335,773 2,315,625 2,352,920 2,384,358 2,546,492 2,634,129 2,611,965 2,612,773 2,477,691 \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n3,815 3,867 3,850 3,764 3,875 3,830 3,844 3,833 3,798 3,746 \n51,898 52,807 53,628 54,272 57,401 59,695 60,572 60,532 61,544 63,421 \n \n128 \n \nUnfunded AAL/ (Funded Excess) as Percentage of Covered Payroll \n[(b-a)/c] \n187.1 % 207.8 199.3 188.0 182.2 173.8 167.1 166.5 184.4 230.1 \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n(105.5) (118.4) (146.1) (157.9) (171.3) (189.0) (207.2) (220.2) (240.1) (300.1) \n(50.8) (30.5) (56.2) (84.9) (72.6) (54.0) (61.2) (55.1) (47.8) (68.3) \n(continued) \n \n Actuarial Section \nSchedules of Funding Progress - Defined Benefit Plans \n(in thousands) \n \nGeorgia Military Pension Fund2 \n \nActuarial Valuation \nDate \n6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 \n \n$ \n** * * ** * \n \nActuarial Value of Plan Assets \n(a) \n10,087 12,131 14,264 16,446 18,414 20,604 23,362 26,119 29,083 33,687 \n \nActuarial Accrued Liability (AAL) Entry-Age \n(b) \n \n$ \n \n28,231 \n \n30,056 \n \n31,815 \n \n35,213 \n \n38,211 \n \n40,731 \n \n43,622 \n \n45,790 \n \n50,329 \n \n53,591 \n \nUnfunded AAL/ (Funded Excess) \n(b-a) \n \n$ \n \n18,144 \n \n17,925 \n \n17,551 \n \n18,767 \n \n19,797 \n \n20,127 \n \n20,260 \n \n19,671 \n \n21,246 \n \n19,904 \n \nFunded Ratio (a/b) \n35.7 % 40.4 44.8 46.7 48.2 50.6 53.6 57.0 57.8 62.9 \n \nAnnual Covered Payroll \n(c) \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n \nUnfunded AAL/ (Funded Excess) as Percentage of Covered Payroll \n[(b-a)/c] \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n \nThis data, except for annual covered payroll, was provided by the System's actuary. \n No statistics regarding covered payroll are available. Contributions are not based on members' salaries, but are simply $4.00 per month, per member for nine months each fiscal year if hired prior to July 1, 2012 and $10 per month, per member for nine months if hired after July 1, 2012.  No statistics regarding covered payroll are available. Active and inactive plan member information is maintained by the Georgia Department of Defense. \nNote: Payroll data on page 128 for fiscal year 2021 will not equal that which is presented in the Financial section in the Schedules of Employers' and Nonemployer Contributions on pages 67-68. Valuation data at that time was a snapshot of the valuation date, annualized for new hires, but does not include those who terminated during the year. \n*Reflects change in assumed rate of return **Reflects changes in actuarial assumptions \n \n129 \n \n Actuarial Section \nSchedule of Retirees Added to and Removed from Rolls \nERS \n \nYear Ended 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 \n \nAdded to Rolls \n \nRemoved from Rolls Roll End of Year \n \nNumber 2,956 3,664 2,440 2,656 2,572 2,630 2,612 2,777 2,553 2,724 \n \nAnnual Allowances (in thousands) \n \n$ \n \n71,464 \n \n88,855 \n \n51,178 \n \n54,003 \n \n51,031 \n \n45,833 \n \n50,005 \n \n58,673 \n \n53,509 \n \n58,426 \n \nNumber 1,305 1,176 1,059 1,350 1,342 1,420 1,422 1,357 1,606 1,893 \n \nAnnual Allowances (in thousands) $ 27,696 \n26,334 22,997 30,927 30,724 32,372 33,530 32,574 38,185 45,432 \n \nNumber 41,860 44,348 45,729 47,035 48,265 49,475 50,665 52,085 53,032 53,863 \n \nAnnual Allowances (in thousands) $ 1,198,180 1,260,701 1,288,882 1,311,958 1,332,265 1,345,726 1,362,201 1,388,300 1,403,624 1,416,618 \n \n% Increase in Annual Allowance \n3.8 % 5.2 2.2 1.8 1.5 1.0 1.2 1.9 1.1 0.9 \n \nAverage Annual Allowances \n \n$ \n \n28,624 \n \n28,427 \n \n28,185 \n \n27,893 \n \n27,603 \n \n27,200 \n \n26,886 \n \n26,655 \n \n26,467 \n \n26,300 \n \nPSERS \n \nYear Ended 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 \n \nAdded to Rolls \n \nRemoved from Rolls Roll End of Year \n \nNumber 1,133 1,298 1,345 1,247 1,363 1,253 1,258 1,301 1,165 1,368 \n \nAnnual Allowances (in thousands) \n \n$ \n \n3,192 \n \n3,803 \n \n3,749 \n \n3,482 \n \n3,927 \n \n4,322 \n \n5,436 \n \n5,319 \n \n5,679 \n \n4,185 \n \nNumber 684 650 647 690 763 756 885 795 932 1,087 \n \nAnnual Allowances (in thousands) $ 2,834 \n2,738 2,604 2,679 2,890 2,927 3,354 3,101 3,484 4,195 \n \nNumber 15,049 15,697 16,395 16,952 17,552 18,049 18,422 18,928 19,161 19,442 \n \nAnnual Allowances (in thousands) \n \n$ \n \n54,117 \n \n55,182 \n \n56,327 \n \n57,130 \n \n58,167 \n \n59,562 \n \n61,644 \n \n63,862 \n \n66,057 \n \n66,047 \n \n% Increase in Annual Allowance \n0.7 % 2.0 2.1 1.4 1.8 2.4 3.5 3.6 3.4 (0.0) \n \nAverage Annual Allowances \n \n$ \n \n3,596 \n \n3,515 \n \n3,436 \n \n3,370 \n \n3,314 \n \n3,300 \n \n3,346 \n \n3,374 \n \n3,447 \n \n3,397 \n \nGJRS \n \nAdded to Rolls \n \nRemoved from Rolls Roll End of Year \n \nYear Ended 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 \n \nNumber 22 42 23 21 13 62 23 52 34 43 \n \nAnnual Allowances (in thousands) \n \n$ \n \n1,732 \n \n2,763 \n \n1,175 \n \n1,416 \n \n919 \n \n5,304 \n \n1,950 \n \n3,435 \n \n2,060 \n \n3,669 \n \nNumber 8 \n13 9 \n11 5 \n10 12 12 19 \n9 \n \nAnnual Allowances (in thousands) $ 405 \n629 326 561 269 771 558 562 1,058 402 \n \nNumber 234 263 277 287 295 347 358 398 413 447 \n \nAnnual Allowances (in thousands) \n \n$ \n \n14,827 \n \n16,961 \n \n17,810 \n \n18,665 \n \n19,315 \n \n23,848 \n \n25,240 \n \n28,113 \n \n29,115 \n \n32,382 \n \n% Increase in Annual Allowance \n9.8 % 14.4 \n5.0 4.8 3.5 23.5 5.8 11.4 3.6 11.2 \n \nAverage Annual Allowances \n \n$ \n \n63,363 \n \n64,490 \n \n64,296 \n \n65,035 \n \n65,475 \n \n68,726 \n \n70,503 \n \n70,636 \n \n70,496 \n \n72,443 \n \n(continued) 130 \n \n Actuarial Section \nSchedule of Retirees Added to and Removed from Rolls \nLRS \n \nAdded to Rolls \n \nRemoved from Rolls Roll End of Year \n \nYear Ended 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 \n \nNumber 10 32 6 13 9 13 11 14 14 30 \n \nAnnual Allowances (in thousands) \n \n$ \n \n66 \n \n200 \n \n30 \n \n87 \n \n58 \n \n80 \n \n57 \n \n82 \n \n95 \n \n207 \n \nNumber 11 15 7 12 13 6 7 12 14 21 \n \nAnnual Allowances (in thousands) \n \n$ \n \n82 \n \n140 \n \n61 \n \n112 \n \n111 \n \n74 \n \n56 \n \n96 \n \n123 \n \n157 \n \nNumber 243 260 259 260 256 263 267 269 269 278 \n \nAnnual Allowances (in thousands) $ 1,774 \n1,834 1,803 1,778 1,725 1,731 1,732 1,718 1,690 1,740 \n \n% Increase in Annual Allowance \n(0.9) % 3.4 (1.7) (1.4) (3.0) 0.3 0.4 (0.8) (1.6) 3.0 \n \nAverage Annual Allowances $ 7,300 \n7,054 6,961 6,838 6,738 6,582 6,489 6,386 6,283 6,259 \n \nGMPF \n \nAdded to Rolls \n \nRemoved from Rolls Roll End of Year \n \nYear Ended 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 \n \nNumber 95 83 62 54 79 83 97 91 89 147 \n \nAnnual Allowances (in thousands) \n \n$ \n \n106 \n \n87 \n \n68 \n \n55 \n \n82 \n \n90 \n \n106 \n \n94 \n \n93 \n \n152 \n \nNumber 3 5 5 6 9 \n11 7 \n18 17 \n9 \n \nAnnual Allowances (in thousands) \n \n$ \n \n3 \n \n5 \n \n6 \n \n5 \n \n9 \n \n11 \n \n8 \n \n20 \n \n20 \n \n9 \n \nNumber 660 738 795 843 913 985 \n1,075 1,148 1,220 1,358 \n \nAnnual Allowances (in thousands) \n \n$ \n \n720 \n \n802 \n \n864 \n \n914 \n \n987 \n \n1,066 \n \n1,164 \n \n1,238 \n \n1,311 \n \n1,454 \n \n% Increase in Annual Allowance \n16.7 % 11.4 \n7.7 5.8 8.0 8.0 9.2 6.4 5.9 10.9 \n \nAverage Annual Allowances $ 1,091 \n1,087 1,087 1,084 1,081 1,082 1,083 1,078 1,075 1,071 \n \nSEAD-OPEB is a post-employment life insurance plan which does not have annuity payments. \n \n131 \n \n Actuarial Section \nAnalysis of Change in Unfunded Accrued Liability (UAL) \n \nERS \nInterest (7.30) added to previous UAL Accrued liability contribution Experience: \nValuation asset growth Pensioners' mortality Turnover and retirements New entrants Salary increases Method changes Amendments (COLAs) Assumption changes Programming modification Data changes Misc. changes \nTotal \n \n2021 \n \n2020 \n \n2019 \n \n2018 \n \n2017 \n \n2016 \n \n2015 \n \nAmount of Increase (Decrease) (in millions) \n \n2014 \n \n2013 \n \n2012 \n \n$ \n \n351.8 $ \n \n(524.9) \n \n(664.4) (37.9) 31.4 7.7 \n(104.9) -- \n62.9 1,756.2 \n-- 5.0 -- \n \n$ \n \n882.9 $ \n \n317.4 $ (564.6) \n59.8 13.3 41.6 \n9.3 9.5 -- -- 578.3 -- 6.5 0.1 \n471.2 $ \n \n321.2 $ (567.4) \n108.6 (1.2) 40.7 9.6 \n(43.5) -- \n61.2 -- -- \n18.4 -- \n(52.4) $ \n \n327.6 $ (574.4) \n(130.4) 2.6 \n58.7 12.4 53.5 \n-- 39.2 161.1 \n-- 15.3 \n8.1 \n(26.3) $ \n \n325.9 $ (551.0) \n(48.6) 9.0 \n39.9 7.8 \n127.5 -- \n28.9 158.3 \n-- (16.2) \n-- \n81.5 $ \n \n331.8 $ (514.7) \n8.5 12.8 43.6 \n7.8 (0.6) \n-- 28.4 \n-- -- 3.6 0.1 \n(78.7) $ \n \n346.2 $ (419.4) \n(198.9) 13.9 50.8 10.3 (89.6) -- -- 80.4 -- 14.4 (0.1) \n(192.0) $ \n \n363.9 $ (321.7) \n(228.9) 60.4 45.5 9.3 \n(159.4) -- -- -- -- \n(6.0) 0.1 \n(236.8) $ \n \n338.8 $ (239.1) \n253.7 20.6 \n103.7 14.1 (46.8) \n(128.3) -- -- -- \n18.7 (0.1) \n335.3 $ \n \n299.2 (147.7) \n396.3 15.5 93.8 12.1 (74.2) -- \n(118.8) -- \n26.3 12.9 12.6 \n528.0 \n \nPSERS \nInterest (7.30) added to previous UAL \nAccrued liability contribution Experience: \nValuation asset growth Pensioners' mortality Turnover and retirements New entrants Method changes Amendments COLAs Assumption changes Lawsuit Data Changes Misc. changes \nTotal \n \nAmount of Increase (Decrease) (in thousands) \n \n$ 14,276.3 $ 12,966.7 $ 12,858.1 $ 12,591.0 $ 11,574.7 $ 12,159.9 $ 11,918.7 $ 13,724.1 $ 13,830.7 $ (17,933.0) (20,400.5) (18,303.2) (17,584.7) (15,278.9) (17,394.7) (17,704.8) (15,915.4) (12,497.7) \n \n12,474.4 (4,843.8) \n \n(47,877.0) (5,890.6) 337.8 2,305.0 -- 14,281.2 (1,604.1) 12,742.1 -- (444.5) -- \n \n3,100.0 (2,626.4) \n814.7 3,516.1 \n-- -- (13,371.6) 34,145.2 -- -- (204.7) \n \n5,770.0 (1,104.1) \n(859.2) 3,701.8 \n-- 12,551.0 (8,832.0) \n-- 110.9 \n-- (4,405.3) \n \n(8,805.0) (2,859.3) (1,024.6) 3,206.8 \n-- 16,292.1 (6,469.5) 10,995.2 \n-- -- (352.4) \n \n(3,247.0) (308.6) (879.7) 4,334.7 -- \n15,892.7 (6,786.4) 10,547.5 \n-- -- (29.5) \n \n$ (29,806.8) $ 17,939.5 $ 1,488.0 $ 5,989.6 $ 15,819.5 $ \n \n841.0 (643.8) (228.2) 2,798.1 \n-- -- (5,492.0) -- -- -- 157.2 \n \n(12,207.0) 414.9 \n2,618.5 2,875.9 \n-- -- (14,772.9) 30,030.0 -- -- 43.0 \n \n(14,071.0) 1,286.7 2,580.8 2,786.0 -- -- \n(14,398.9) -- -- -- \n(64.9) \n \n13,868.0 (381.9) 4,772.4 2,757.7 \n(9,259.0) -- \n(14,813.1) -- -- -- \n301.7 \n \n21,922.0 (1,149.5) 4,974.5 2,783.8 \n-- -- (20,664.9) -- -- -- 2,586.9 \n \n(7,802.5) $ 3,216.3 $ (24,072.6) $ (1,421.2) $ 18,083.4 \n \n(continued) 132 \n \n Actuarial Section \nAnalysis of Change in Unfunded Accrued Liability (UAL) \n \nGJRS \nInterest (7.30) added to previous UAL \nAccrued liability contribution Experience: \nValuation asset growth Pensioners' mortality Turnover and retirements New entrants Salary increases Method changes Amendments (COLAs) Assumption changes Data changes Programming modification Misc. changes \nTotal \n \n2021 \n \n2020 \n \n2019 \n \n2018 \n \n2017 \n \n2016 \n \n2015 \n \nAmount of Increase (Decrease) (in thousands) \n \n2014 \n \n2013 \n \n2012 \n \n$ (2,146.4) $ (2,433.7) $ (2,705.6) $ (2,416.5) $ (3,125.4) $ (3,457.6) $ (2,259.9) $ (1,207.3) $ (1,977.2) $ (2,774.8) \n \n2,355.8 \n \n2,367.2 \n \n3,085.8 \n \n2,005.4 \n \n1,245.0 \n \n(746.2) \n \n3,754.1 \n \n5,803.3 \n \n5,187.8 \n \n4,710.8 \n \n(24,103.0) 1,897.6 4,751.0 1,588.3 (4,724.8) -- 710.0 4,255.0 1,509.0 -- -- \n$ (13,907.5) $ \n \n1,470.0 1,109.5 (1,383.9) \n492.4 (4,160.2) \n-- -- 5,058.9 1,416.2 -- -- \n3,936.4 $ \n \n2,721.4 1,456.8 1,100.3 1,774.9 (5,839.7) \n-- 645.9 \n-- 1,484.4 \n-- -- \n3,724.2 $ \n \n(4,346.6) 543.1 (162.6) 338.7 \n(5,756.8) -- \n993.1 3,696.0 \n-- -- 263.6 \n(4,842.6) $ \n \n(1,538.9) (339.7) 2,307.0 2,353.1 187.7 -- 3,345.4 3,615.6 -- -- 1,402.0 \n9,451.8 $ \n \n562.3 1,530.2 \n872.4 1,190.9 \n209.7 -- \n3,179.6 -- -- -- \n1,086.9 \n \n(5,855.8) 639.6 (370.0) \n1,539.1 (8,848.5) \n-- -- (5,030.9) -- -- 464.1 \n \n(6,807.0) 2,138.5 (5,962.8) 1,272.3 (10,382.5) \n-- -- -- -- -- 1,110.1 \n \n4,949.6 533.8 \n3,941.4 3,138.0 (4,620.6) (6,827.0) \n-- -- -- 4,606.4 1,333.8 \n \n8,638.5 376.9 \n2,080.7 442.3 \n(4,536.5) -- \n(870.0) -- -- \n1,648.9 917.5 \n \n4,428.2 $ (15,968.2) $ (14,035.4) $ 10,266.0 $ 10,634.3 \n \nLRS \nInterest (7.30) added to previous UAL Accrued liability contribution Experience: \nValuation asset growth Pensioners' mortality Turnover and retirements New entrants Method changes Amendments COLAs Assumption changes Data changes Misc. changes \nTotal \n \nAmount of Increase (Decrease) (in thousands) \n \n$ \n \n(665.6) $ \n \n405.5 \n \n(1,734.8) (43.5) (65.1) 96.6 -- 99.6 \n(431.8) 220.2 \n(2.8) -- \n$ (2,121.7) $ \n \n(616.1) $ 352.1 \n123.6 (19.8) (119.1) \n3.7 -- -- (444.3) 60.4 (19.8) -- \n(679.3) $ \n \n(581.5) $ 315.2 \n245.1 29.6 \n(180.7) 57.2 -- \n101.9 (457.4) \n-- (3.6) 0.9 \n(473.3) $ \n \n(535.7) $ 322.9 \n(342.2) 118.3 (175.2) \n16.7 -- \n67.6 (462.8) 229.1 \n-- 34.8 \n(726.5) $ \n \n(497.8) $ 250.3 \n(129.2) 245.9 (257.7) \n99.2 -- \n50.4 (458.3) 223.7 \n-- (127.9) \n(601.5) $ \n \n(445.9) $ 338.3 \n24.1 (66.1) (198.9) 26.8 \n-- 51.5 (418.2) \n-- -- (4.7) \n(693.1) $ \n \n(421.9) $ 173.4 \n \n(343.3) $ 161.9 \n \n(491.6) (50.8) (10.1) 35.1 -- -- \n(452.6) 852.3 \n-- 46.2 \n(320.0) $ \n \n(576.5) 323.8 (347.5) 135.2 \n-- -- (470.8) -- -- 69.9 \n(1,047.3) $ \n \n(301.8) $ (62.4) \n513.9 (29.6) 17.4 144.5 (418.0) (488.1) \n-- -- -- 71.1 \n(553.1) $ \n \n(302.5) 33.9 \n829.0 19.1 (84.3) 16.9 -- \n(549.7) -- -- -- \n46.4 \n8.8 \n \n(continued) 133 \n \n Actuarial Section \nAnalysis of Change in Unfunded Accrued Liability (UAL) \n \nGMPF \nInterest (7.30) added to previous UAL Accrued liability contribution Experience: \nValuation asset growth Pensioners' mortality Turnover and retirements New entrants Method changes Assumption changes Data changes Misc. changes \nTotal \n \n2021 \n \n2020 \n \n2019 \n \n2018 \n \n2017 \n \n2016 \n \nAmount of Increase (Decrease) (in thousands) \n \n2015 \n \n2014 \n \n2013 \n \n2012 \n \n$ 1,550.9 $ 1,436.0 $ 1,479.0 $ 1,489.4 $ 1,484.8 $ 1,407.5 $ 1,316.3 $ 1,344.3 $ 1,360.8 $ 1,354.9 \n \n(2,381.5) \n \n(2,348.7) \n \n(2,285.4) \n \n(2,140.6) \n \n(1,747.5) \n \n(1,698.6) \n \n(1,765.6) \n \n(1,775.3) \n \n(1,661.5) \n \n(1,502.4) \n \n(1,443.0) 34.0 \n(136.4) 277.1 \n-- 696.7 \n61.1 (0.4) \n$ (1,341.5) $ \n \n47.0 (36.1) 78.5 331.6 \n-- 2,313.3 (243.0) \n(3.9) \n1,574.7 $ \n \n68.0 (20.1) (17.0) 179.1 \n-- -- 10.4 (3.0) \n(589.0) $ \n \n(181.0) 40.7 \n143.1 208.9 \n-- 570.2 \n-- 2.6 \n133.3 $ \n \n(50.0) (109.2) \n11.0 138.9 \n-- 537.6 \n-- 64.2 \n329.8 $ \n \n59.0 119.3 233.3 165.1 \n-- -- -- 744.4 \n1,030.0 $ \n \n(203.0) 126.1 120.5 236.9 \n-- 985.8 \n-- 398.7 \n1,215.7 $ \n \n(247.0) 88.8 (87.9) \n142.6 -- -- -- \n161.1 \n(373.4) $ \n \n39.3 80.2 186.4 137.8 (393.0) \n-- -- 30.6 \n(219.4) $ \n \n107.0 68.3 17.9 \n127.1 -- -- -- \n(93.6) \n79.2 \n \nSEAD-OPEB: Data is not available. \n \n134 \n \n Actuarial Section \nSolvency Test Results \n(in thousands) \nERS \n \nActuarial Valuation as of 6/30 \n2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 \nPSERS \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n \nActive Member \n \nRetirants \u0026 \n \n(Employer \n \nBeneficiaries Funded Portion) \n \nValuation Assets \n \n(1) \n \n(2) \n \n(3) \n \n$ 460,861 $ 11,420,011 $ 4,897,050 $ 12,260,595 \n \n405,841 \n \n11,935,364 \n \n4,641,244 \n \n12,129,803 \n \n385,058 \n \n12,108,737 \n \n4,498,168 \n \n12,376,120 \n \n367,462 \n \n12,520,321 \n \n4,211,744 \n \n12,675,649 \n \n368,281 \n \n12,592,980 \n \n4,238,427 \n \n12,854,518 \n \n368,935 \n \n12,729,977 \n \n4,415,986 \n \n13,088,185 \n \n372,375 \n \n12,927,796 \n \n4,512,270 \n \n13,412,046 \n \n371,147 \n \n13,077,253 \n \n4,380,820 \n \n13,481,219 \n \n372,510 \n \n13,406,538 \n \n4,596,749 \n \n13,556,622 \n \n371,048 \n \n14,782,338 \n \n4,932,309 \n \n14,383,600 \n \nActuarial Valuation as of 6/30 \n \nGJRS \n \n2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n \nRetirants \u0026 Beneficiaries \n \n(1) \n \n(2) \n \n$ \n \n16,917 $ 537,284 \n \n17,016 \n \n549,796 \n \n16,995 \n \n566,344 \n \n17,196 \n \n585,471 \n \n17,413 \n \n609,807 \n \n18,077 \n \n640,197 \n \n18,570 \n \n674,222 \n \n19,109 \n \n695,624 \n \n19,898 \n \n721,554 \n \n20,188 \n \n763,615 \n \nActive Member (Employer \nFunded Portion) \n \nValuation Assets \n \n(3) \n \n$ 341,123 $ 710,915 \n \n343,444 \n \n727,268 \n \n341,026 \n \n765,450 \n \n364,742 \n \n805,277 \n \n361,663 \n \n834,554 \n \n377,661 \n \n865,786 \n \n388,392 \n \n905,046 \n \n393,925 \n \n931,032 \n \n415,545 \n \n961,431 \n \n424,152 \n \n1,042,196 \n \nActuarial Valuation as of 6/30 \n2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n \nRetirants \u0026 Beneficiaries \n \n(1) \n \n(2) \n \n$ \n \n73,998 $ 141,880 \n \n73,949 \n \n162,364 \n \n80,007 \n \n162,527 \n \n84,170 \n \n174,147 \n \n91,991 \n \n180,107 \n \n84,841 \n \n220,738 \n \n88,890 \n \n231,811 \n \n85,722 \n \n256,060 \n \n89,842 \n \n267,433 \n \n82,116 \n \n303,301 \n \nActive Member (Employer \nFunded Portion) \n \nValuation Assets \n \n(3) \n \n$ \n \n92,984 $ 335,225 \n \n99,479 \n \n351,889 \n \n100,894 \n \n373,560 \n \n91,981 \n \n396,399 \n \n104,642 \n \n418,412 \n \n102,028 \n \n439,828 \n \n104,023 \n \n461,787 \n \n98,882 \n \n474,003 \n \n100,913 \n \n487,591 \n \n97,202 \n \n525,929 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n100.0 % 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 \n \n(2) \n100.0 % 98.2 99.0 98.3 99.2 99.9 \n100.0 100.0 \n98.3 94.8 \n \n(3) \n7.8 % -- -- -- -- -- 2.5 0.7 -- -- \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n100.0 % 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 \n \n(2) \n100.0 % 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 \n \n(3) \n45.9 % 46.7 53.4 55.5 57.3 54.9 54.6 54.9 52.9 60.9 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n100.0 % 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 \n \n(2) \n100.0 % 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 \n \n(3) \n100.0 % 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 \n \n(continued) 135 \n \n Actuarial Section \nSolvency Test Results \n(in thousands) \nLRS \n \nActuarial Valuation as of 6/30 \n \nGMPF \n \n2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n \nRetirants \u0026 Beneficiaries \n \n(1) \n \n(2) \n \n$ \n \n3,185 \n \n$ \n \n2,951 \n \n3,430 \n \n3,287 \n \n3,630 \n \n3,543 \n \n3,862 \n \n3,664 \n \n4,007 \n \n3,628 \n \n19,200 19,623 19,006 19,873 19,202 19,382 19,048 19,204 18,936 20,179 \n \nActive Member (Employer \nFunded Portion) \n \nValuation Assets \n \n(3) \n \n$ \n \n2,581 \n \n$ \n \n2,330 \n \n2,477 \n \n2,530 \n \n2,701 \n \n2,749 \n \n2,995 \n \n2,846 \n \n2,600 \n \n2,031 \n \n28,990 29,481 30,538 31,635 32,171 32,913 33,871 34,153 34,661 37,078 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n100.0 % 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 \n \n(2) \n100.0 % 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 \n \n(3) \n100.0 % 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 \n \nActuarial Valuation as of 6/30 \n2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 \nSEAD-OPEB \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n \nRetirants \u0026 Beneficiaries \n \n(1) \n \n(2) \n \n$ \n \n-- \n \n$ \n \n17,518 \n \n-- \n \n19,396 \n \n-- \n \n21,389 \n \n-- \n \n24,075 \n \n-- \n \n26,337 \n \n-- \n \n28,867 \n \n-- \n \n30,964 \n \n-- \n \n33,435 \n \n-- \n \n37,021 \n \n-- \n \n39,880 \n \nActive Member (Employer \nFunded Portion) \n \nValuation Assets \n \n(3) \n \n$ 10,713 \n \n$ \n \n10,660 \n \n10,426 \n \n11,138 \n \n11,874 \n \n11,864 \n \n12,658 \n \n12,355 \n \n13,308 \n \n13,711 \n \n10,087 12,131 14,264 16,446 18,414 20,604 23,362 26,119 29,083 33,687 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n \n(2) \n \n(3) \n \nn/a \n \n57.6 % \n \n-- % \n \nn/a \n \n62.5 \n \n-- \n \nn/a \n \n66.7 \n \n-- \n \nn/a \n \n68.3 \n \n-- \n \nn/a \n \n69.9 \n \n-- \n \nn/a \n \n71.4 \n \n-- \n \nn/a \n \n75.4 \n \n-- \n \nn/a \n \n78.1 \n \n-- \n \nn/a \n \n78.6 \n \n-- \n \nn/a \n \n84.5 \n \n-- \n \nActuarial Valuation as of 6/30 \n2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n \nActive Member \n \nRetirants \u0026 \n \n(Employer \n \nBeneficiaries Funded Portion) \n \nValuation Assets \n \n(1) \n \n$ \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n(2) \n \n(3) \n \n$ 528,165 $ 176,452 \n \n586,228 \n \n168,558 \n \n621,502 \n \n166,518 \n \n621,426 \n \n148,321 \n \n652,291 \n \n180,078 \n \n693,118 \n \n183,468 \n \n735,214 \n \n183,943 \n \n772,657 \n \n174,082 \n \n757,612 \n \n146,920 \n \n791,437 \n \n139,809 \n \n$ \n \n818,284 \n \n907,831 \n \n1,037,901 \n \n1,046,559 \n \n1,028,541 \n \n1,121,251 \n \n1,189,462 \n \n1,233,856 \n \n1,256,718 \n \n1,566,821 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n \n(2) \n \n(3) \n \nn/a \n \n100.0 % 100.0 % \n \nn/a \n \n100.0 \n \n100.0 \n \nn/a \n \n100.0 \n \n100.0 \n \nn/a \n \n100.0 \n \n100.0 \n \nn/a \n \n100.0 \n \n100.0 \n \nn/a \n \n100.0 \n \n100.0 \n \nn/a \n \n100.0 \n \n100.0 \n \nn/a \n \n100.0 \n \n100.0 \n \nn/a \n \n100.0 \n \n100.0 \n \nn/a \n \n100.0 \n \n100.0 \n \n136 \n \n Statistical Section \nGeorgia's Waterfalls \nAmicalola Falls \n \n Amicalola Falls \nAmicalola Falls Loop Trail: 2.1 miles, difficult Amicalola Falls State Park is in central-north Georgia, near Dawsonville. Amicalola Falls drops over 730 feet, making it Georgia's tallest waterfall. It cascades in multiple tiers of white, misty water from a towering cliff in Georgia's Chattahoochee National Forest. This hike is a 1-mile journey to the crest of this enormous waterfall, grabbing stunning views from the top before descending alongside the falls along bridges and steep stairs. Stunning views of the surrounding mountains emerge on the trail's left side as the hike climbs in elevation, and the sounds of the nearby plunging waterfall become audible as the trail rises toward the crest. The hike descends and then reaches a paved pathway, crossing a bridge spanning the waterfall's upper third. The hike continues its descent, following stairs and landings and catching uninterrupted views of the waterfall and then parallels the waterfall's lower cascades, offering up-close views of the creek as it spills over tumbled boulders in small cascading waterfalls. \nLearn more at atlantatrails.com \n \n Statistical Section \nIntroduction \nThe objective of the statistical section is to provide a historical perspective, context and relevant details to assist readers in evaluating the condition of the plans. All non-accounting data is taken from the System's internal sources except for information which is derived from the actuarial valuations. Due to the adoption of GASB 74 in FY2017, historical detail may not be complete for the Schedule of Revenue and Expense and will be added each year. Statistical information is not presented for SCJRF and DARF as both plans are immaterial, have no active members, and are closed to new members. \nFiduciary Funds Financial Trends \nThe following schedules have been included to help the readers understand how the System's financial position has changed over the past 10 years: \nAdditions by Source Deductions by Type Changes in Fiduciary Net Position Operational Trends The following schedules have been included to help the readers understand how the System's financial report relates to the services provided by the System and the activities it performs: Retiree Information Withdrawal (Refund) Data New Retiree Elections Principal Participating Employers Statistical Data as of June 30, 2022 \nProprietary Fund \nSchedule of Revenue and Expenses 10-year Schedule of Membership \n139 \n \n Statistical Section \n \nAdditions by Source - Contribution/Investment Income \n(in thousands) \n \nERS Member Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \n \n2013 \n \n2014 \n \n2015 \n \n2016 \n \n2017 \n \n2018 \n \n2019 \n \n2020 \n \n2021 \n \n2022 \n \n$ 38,955 $ 32,423 $ 33,713 $ 31,961 $ 35,863 $ 37,130 $ 36,252 $ 35,837 $ 35,027 $ 36,130 \n \n358,992 418,807 505,668 583,082 613,201 639,302 638,989 634,108 606,919 611,410 \n \n-- \n \n10,945 \n \n12,495 \n \n12,484 \n \n12,080 \n \n12,865 \n \n10,220 \n \n9,749 \n \n9,048 \n \n8,313 \n \n1,495,849 2,021,748 474,147 141,292 1,475,626 1,166,013 873,404 703,840 3,843,581 (1,855,595) \n \n-- \n \n-- \n \n10 \n \n10 \n \n10 \n \n10 \n \n10 \n \n10 \n \n10 \n \n10 \n \nTotal Additions to (Deductions from) Fiduciary Net Position \nPSERS Member Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \n \n$1,893,796 $2,483,923 $1,026,033 $ 768,829 $2,136,780 $1,855,320 $1,558,875 $1,383,544 $4,494,585 $(1,199,732) \n \n$ 1,538 $ 1,659 $ 1,800 $ 1,925 $ 2,084 $ 2,162 $ 2,256 $ 2,338 $ 2,222 $ 2,256 \n \n24,829 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n27,160 \n \n28,461 \n \n28,580 \n \n26,277 \n \n29,276 \n \n30,263 \n \n32,496 \n \n30,264 \n \n32,491 \n \n88,067 123,799 \n \n30,129 \n \n9,809 \n \n97,715 \n \n78,418 \n \n60,553 \n \n49,913 277,705 (138,145) \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \nTotal Additions to (Deductions from) Fiduciary Net Position \nGJRS Member Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \n \n$ 114,434 $ 152,618 $ 60,390 $ 40,314 $ 126,076 $ 109,856 $ 93,072 $ 84,747 $ 310,191 $ (103,398) \n \n$ 4,408 $ 4,731 $ 5,061 $ \n \n2,279 \n \n1,373 \n \n2,696 \n \n-- \n \n1,002 \n \n1,564 \n \n42,104 \n \n60,012 \n \n14,697 \n \n-- \n \n-- \n \n-- \n \n5,507 $ 4,754 2,869 5,055 \n-- \n \n4,906 $ 4,081 2,603 49,259 \n-- \n \n4,910 $ 4,725 1,841 39,877 \n-- \n \n5,469 $ 3,117 2,137 30,827 \n-- \n \n5,005 $ 5,190 $ 5,466 \n \n4,022 \n \n3,830 \n \n7,585 \n \n2,442 \n \n2,240 \n \n2,377 \n \n25,414 140,103 \n \n(69,334) \n \n-- \n \n-- \n \n-- \n \nTotal Additions to (Deductions from) Fiduciary Net Position \nLRS Member Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \n \n$ 48,791 $ 67,118 $ 24,018 $ 18,185 $ 60,849 $ 51,353 $ 41,550 $ 36,883 $ 151,363 $ (53,906) \n \n$ \n \n373 $ \n \n282 $ \n \n327 $ \n \n128 \n \n45 \n \n-- \n \n-- \n \n-- \n \n-- \n \n3,573 \n \n4,969 \n \n1,189 \n \n-- \n \n-- \n \n-- \n \n328 $ -- -- \n363 -- \n \n327 $ -- -- \n3,741 -- \n \n323 $ -- -- \n2,962 -- \n \n339 $ -- -- \n2,228 -- \n \n325 $ -- -- \n1,824 -- \n \n290 $ -- -- \n9,928 -- \n \n344 -- -- \n(4,848) -- \n \nTotal Additions to (Deductions from) Fiduciary Net Position \n \n$ 4,074 $ 5,296 $ 1,516 $ \n \n691 $ 4,068 $ 3,285 $ 2,567 $ 2,149 $ 10,218 $ (4,504) \n \n(continued) 140 \n \n Statistical Section \n \nAdditions by Source - Contribution/Investment Income \n(in thousands) \n \nGMPF \nMember Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \n \n2013 \n \n2014 \n \n2015 \n \n2016 \n \n2017 \n \n2018 \n \n2019 \n \n2020 \n \n2021 \n \n2022 \n \n$ \n \n-- $ \n \n-- $ \n \n-- $ \n \n-- $ \n \n-- $ \n \n-- $ \n \n1,703 \n \n1,892 \n \n1,893 \n \n1,990 \n \n2,018 \n \n2,377 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n1,374 \n \n2,179 \n \n585 \n \n240 \n \n2,262 \n \n1,928 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- $ 2,537 \n-- 1,683 \n-- \n \n-- $ 2,611 \n-- 1,485 \n-- \n \n-- $ 2,684 \n-- 8,709 \n-- \n \n-- 2,697 \n-- (4,693) \n-- \n \nTotal Additions to (Deductions from) Fiduciary Net Position \nSEAD - OPEB \nMember Contributions Employer Contributions Insurance Premiums Net Investment Income (Loss) Other \n \n$ 3,077 $ 4,071 $ 2,478 $ 2,230 $ 4,280 $ 4,305 $ 4,220 $ 4,096 $ 11,393 $ (1,996) \n \n$ \n \n-- $ \n \n-- $ \n \n-- \n \n-- \n \n5,075 \n \n4,502 \n \n108,148 154,868 \n \n-- \n \n-- \n \n-- $ -- 4,187 37,876 -- \n \n-- $ \n \n-- $ \n \n-- $ \n \n-- \n \n1 \n \n-- \n \n3,931 \n \n3,793 \n \n3,599 \n \n12,559 125,550 101,542 \n \n-- \n \n-- \n \n-- \n \n-- $ 5 3,328 79,193 -- \n \n-- $ -- 3,088 65,248 -- \n \n-- -- 2,817 362,663 -- \n \n$ \n \n-- \n \n-- \n \n2,641 \n \n(179,369) \n \n-- \n \nTotal Additions to (Deductions from) Fiduciary Net Position \nDefined Contribution Plan - GDCP \nMember Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \n \n$ 113,223 $ 159,370 $ \n \n$ 16,676 $ 16,290 $ \n \n-- \n \n-- \n \n-- \n \n-- \n \n137 \n \n1,368 \n \n-- \n \n-- \n \n42,063 $ \n15,655 $ -- -- \n1,326 -- \n \n16,490 $ 129,344 $ 105,141 $ \n \n14,708 $ -- -- \n5,591 -- \n \n14,921 $ -- -- \n(1,056) -- \n \n14,585 $ -- -- \n(356) -- \n \n82,526 $ \n14,578 $ -- -- \n8,324 -- \n \n68,336 $ 365,480 $ (176,728) \n \n14,658 $ -- -- \n9,078 -- \n \n15,759 $ -- -- \n(1,867) -- \n \n16,228 -- -- \n(7,992) -- \n \nTotal Additions to (Deductions from) Fiduciary Net Position \n \n$ 16,813 $ 17,658 $ 16,981 $ 20,299 $ 13,865 $ 14,229 $ 22,902 $ 23,736 $ 13,892 $ 8,236 \n \n(continued) 141 \n \n Statistical Section \n \nAdditions by Source - Contribution/Investment Income \n(in thousands) \n \nDefined Contribution Plan - 401(k) \nMember Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \n \n2013 \n \n2014 \n \n2015 \n \n2016 \n \n2017 \n \n2018 \n \n2019 \n \n2020 \n \n2021 \n \n2022 \n \n$ 44,428 $ 53,724 $ 64,870 $ 79,422 $ 93,608 $ 110,848 $ 119,770 $ 129,639 $ 132,123 $ 146,280 \n \n18,279 \n \n21,513 \n \n25,615 \n \n29,982 \n \n36,761 \n \n43,176 \n \n47,170 \n \n51,138 \n \n52,023 \n \n57,538 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n52,835 \n \n78,583 \n \n17,665 \n \n5,281 \n \n88,771 \n \n72,671 \n \n61,106 \n \n40,850 371,775 (222,604) \n \n948 \n \n1,122 \n \n1,298 \n \n1,429 \n \n1,584 \n \n1,744 \n \n544 \n \n426 \n \n567 \n \n583 \n \nTotal Additions to (Deductions from) Fiduciary Net Position \nDefined Contribution Plan - 457 \nMember Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \n \n$ 116,490 $ 154,942 $ 109,448 $ 116,114 $ 220,724 $ 228,439 $ 228,590 $ 222,053 $ 556,488 $ (18,203) \n \n$ 18,753 $ 17,623 $ 17,445 $ 17,413 $ 18,899 $ 20,133 $ 20,264 $ 20,216 $ 19,566 $ 21,125 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n55,737 \n \n73,746 \n \n18,991 \n \n7,855 \n \n59,541 \n \n46,748 \n \n39,100 \n \n25,563 162,958 \n \n(83,190) \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n53 \n \n25 \n \n61 \n \n46 \n \nTotal Additions to (Deductions from) Fiduciary Net Position \nSuvivor's Benefit Fund - SBF \nMember Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \n \n$ 74,490 $ 91,369 $ 36,436 $ 25,268 $ 78,440 $ 66,881 $ 59,417 $ 45,804 $ 182,585 $ (62,019) \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a $ \n \n-- $ \n \n-- $ \n \n-- \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \n-- \n \n-- \n \n-- \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \n-- \n \n-- \n \n-- \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \n8,701 \n \n49,353 \n \n(25,611) \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \n-- \n \n-- \n \n-- \n \nTotal Additions to (Deductions from) \n \nFiduciary Net Position \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a $ 8,701 $ 49,353 $ (25,611) \n \n142 \n \n Statistical Section \nDeductions by Type \n(in thousands) \n \nERS \n \nBenefit Payments \n \nFiscal Year Service \n \n2013 $ 1,007,816 \n \n2014 \n \n1,051,993 \n \n2015 \n \n1,076,676 \n \n2016 \n \n1,092,909 \n \n2017 \n \n1,130,996 \n \n2018 \n \n1,146,226 \n \n2019 \n \n1,171,942 \n \n2020 \n \n1,205,502 \n \n2021 \n \n1,164,687 \n \n2022 \n \n1,218,706 \n \nPartial Lump-Sum \nOption $ 35,933 \n24,567 24,391 19,154 19,765 21,624 20,535 19,108 15,991 14,277 \n \nDisability $ 145,152 \n146,245 147,418 147,706 151,772 152,469 155,193 159,443 154,948 161,636 \n \nSurvivor Benefits $ 80,300 83,193 85,794 87,843 91,750 92,979 96,086 100,392 99,149 108,285 \n \nNet \n \nTotal Benefit Administrative \n \nPayments \n \nExpenses \n \nRefunds \n \n$ 1,269,201 $ 12,889 $ 7,390 \n \n1,305,998 \n \n7,440 \n \n8,757 \n \n1,334,278 \n \n7,872 \n \n7,450 \n \n1,347,633 \n \n8,506 \n \n7,087 \n \n1,394,283 \n \n8,732 \n \n9,033 \n \n1,413,298 \n \n8,056 \n \n7,585 \n \n1,443,756 \n \n7,142 \n \n7,691 \n \n1,484,445 \n \n7,641 \n \n6,644 \n \n1,434,775 \n \n7,587 \n \n6,604 \n \n1,502,904 \n \n7,577 \n \n7,182 \n \nTotal Deductions \nfrom Fiduciary Net Position \n$1,289,480 \n1,322,195 \n1,349,600 \n1,363,226 \n1,412,048 \n1,428,939 \n1,458,589 \n1,498,730 \n1,448,966 \n1,517,663 \n \nPSERS \n \nFiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nService $ 47,805 \n48,911 49,704 50,572 52,012 54,257 56,008 58,412 58,744 60,307 \n \nBenefit Payments \n \nDisability $ 5,328 \n5,280 5,227 5,172 5,117 5,114 4,991 5,000 4,850 4,805 \n \nSurvivor Benefits $ 1,908 \n1,998 2,041 2,160 2,249 2,449 2,638 2,678 2,821 3,091 \n \nTotal Benefit Payments \n$ 55,041 56,189 56,972 57,903 59,378 61,820 63,637 66,090 66,415 68,203 \n \nNet Administrative \nExpenses \n \n$ \n \n2,021 \n \n1,450 \n \n1,545 \n \n1,321 \n \n1,308 \n \n1,331 \n \n1,377 \n \n1,424 \n \n1,421 \n \n1,523 \n \nRefunds $ 492 \n514 456 465 1,031 701 609 572 633 614 \n \nTotal Deductions \nfrom Fiduciary Net Position \n$ 57,554 \n58,153 \n58,973 \n59,689 \n61,717 \n63,852 \n65,623 \n68,086 \n68,469 \n70,340 \n \nGJRS \n \nFiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nService $ 14,273 \n15,305 16,084 16,677 19,349 22,239 24,642 26,203 27,870 30,881 \n \nBenefit Payments \n \nDisability $ 112 \n112 112 112 114 117 119 120 117 \n85 \n \nSurvivor Benefits $ 1,865 \n2,024 2,169 2,222 2,321 2,578 2,701 2,940 2,971 3,084 \n \nTotal Benefit Payments \n$ 16,250 17,441 18,365 19,011 21,784 24,934 27,462 29,263 30,958 34,050 \n \nNet Administrative \nExpenses \n \n$ \n \n313 \n \n754 \n \n819 \n \n754 \n \n728 \n \n794 \n \n820 \n \n849 \n \n846 \n \n893 \n \nRefunds $ 105 \n22 772 261 166 150 553 213 \n63 23 \n \nTotal Deductions \nfrom Fiduciary Net Position \n$ 16,668 \n18,217 \n19,956 \n20,026 \n22,678 \n25,878 \n28,835 \n30,325 \n31,867 \n34,966 \n \n(continued) 143 \n \n Statistical Section \nDeductions by Type \n(in thousands) \n \nLRS \n \nBenefit Payments \n \nFiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nService $ 1,376 \n1,336 1,315 1,294 1,323 1,347 1,383 1,362 1,293 1,369 \n \nSurvivor Benefits \n \n$ \n \n448 \n \n465 \n \n441 \n \n429 \n \n440 \n \n425 \n \n473 \n \n433 \n \n427 \n \n449 \n \nTotal Benefit Payments \n$ 1,824 1,801 1,756 1,724 1,763 1,772 1,856 1,795 1,720 1,818 \n \nNet Administrative \nExpenses \n \n$ \n \n119 $ \n \n152 \n \n169 \n \n313 \n \n224 \n \n283 \n \n290 \n \n305 \n \n311 \n \n327 \n \nRefunds 88 30 26 38 75 22 70 21 42 33 \n \nTotal Deductions \nfrom Fiduciary Net Position \n$ 2,031 \n1,983 \n1,951 \n2,075 \n2,062 \n2,077 \n2,216 \n2,121 \n2,073 \n2,178 \n \nGMPF \nFiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nBenefit Payments \n \nService* \n \n$ \n \n772 \n \n841 \n \n896 \n \n963 \n \n1,042 \n \n1,138 \n \n1,221 \n \n1,297 \n \n1,428 \n \n1,527 \n \nTotal Benefit Payments \n \n$ \n \n772 \n \n841 \n \n896 \n \n963 \n \n1,042 \n \n1,138 \n \n1,221 \n \n1,297 \n \n1,428 \n \n1,527 \n \nNet Administrative \nExpenses \n \nTotal Deductions \nfrom Fiduciary Net Position \n \n$ \n \n31 \n \n$ \n \n803 \n \n110 \n \n951 \n \n121 \n \n1,017 \n \n262 \n \n1,225 \n \n244 \n \n1,286 \n \n225 \n \n1,363 \n \n235 \n \n1,456 \n \n249 \n \n1,546 \n \n255 \n \n1,683 \n \n266 \n \n1,793 \n \n*The only type of retirement in GMPF is a service retirement. SEAD-OPEB \n \nFiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nBenefit Payments \n \nDeath Benefits** $ 28,482 \n28,891 32,979 33,911 36,058 36,249 37,416 44,754 54,680 55,053 \n \nTotal Benefit Payments \n$ 28,482 28,891 32,979 33,911 36,058 36,249 37,416 44,754 54,680 55,053 \n \nNet Administrative \nExpenses \n \nTotal Deductions \nfrom Fiduciary Net Position \n \n$ \n \n203 $ 28,685 \n \n414 \n \n29,305 \n \n428 \n \n33,407 \n \n599 \n \n34,510 \n \n576 \n \n36,634 \n \n681 \n \n36,930 \n \n716 \n \n38,132 \n \n720 \n \n45,474 \n \n697 \n \n55,377 \n \n755 \n \n55,808 \n \n**The only type of benefit in SEAD-OPEB is a death benefit. \n \n144 \n \n(continued) \n \n Statistical Section \nDeductions by Type \n(in thousands) \n \nDefined Contribution Plan - GDCP Benefit Payments \n \nFiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nPeriodic Payments \n \n$ \n \n9 \n \n9 \n \n-- \n \n-- \n \n-- \n \n-- \n \n10 \n \n7 \n \n9 \n \n9 \n \nTotal Benefit Payments \n \n$ \n \n9 \n \n9 \n \n-- \n \n35 \n \n-- \n \n-- \n \n10 \n \n7 \n \n9 \n \n9 \n \nNet Administrative \nExpenses $ 1,160 $ \n991 990 766 785 852 882 913 902 987 \n \nRefunds 14,415 17,721 22,340 11,911 11,544 10,080 10,931 10,510 10,701 10,069 \n \nTotal Deductions \nfrom Fiduciary Net Position \n$ 15,584 \n18,721 \n23,330 \n12,712 \n12,329 \n10,932 \n11,823 \n11,430 \n11,612 \n11,065 \n \nDefined Contribution Plan - 401(k) \n \nFiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nBenefit Payments \n \nDistributions \n$ 57,351 43,133 95,428 46,508 55,866 64,103 79,644 92,355 \n127,352 137,593 \n \nTotal Benefit Payments \n$ 57,351 43,133 95,428 46,508 55,866 64,103 79,644 92,355 \n127,352 137,593 \n \nNet Administrative \nExpenses \n \nTotal Deductions \nfrom Fiduciary Net Position \n \n$ \n \n2,457 $ 59,808 \n \n2,300 \n \n45,433 \n \n2,755 \n \n98,183 \n \n2,832 \n \n49,340 \n \n3,096 \n \n58,962 \n \n3,639 \n \n67,742 \n \n3,431 \n \n83,075 \n \n3,816 \n \n96,171 \n \n3,554 \n \n130,906 \n \n3,437 \n \n141,030 \n \nDefined Contribution Plan - 457 \n \nFiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nBenefit Payments \n \nDistributions \n$ 63,388 45,807 50,479 43,288 38,872 40,690 42,081 40,067 52,207 50,440 \n \nTotal Benefit Payments \n$ 63,388 45,807 50,479 43,288 38,872 40,690 42,081 40,067 52,207 50,440 \n \nNet Administrative \nExpenses \n \nTotal Deductions \nfrom Fiduciary Net Position \n \n$ \n \n996 $ 64,384 \n \n812 \n \n46,619 \n \n866 \n \n51,345 \n \n820 \n \n44,108 \n \n789 \n \n39,661 \n \n442 \n \n41,132 \n \n724 \n \n42,805 \n \n745 \n \n40,812 \n \n671 \n \n52,878 \n \n585 \n \n51,025 \n \n145 \n \n(continued) \n \n Statistical Section \nDeductions by Type \n(in thousands) \n \nSurvivors' Benefit Fund Benefit Payments \n \nFiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nDeath Benefits \nn/a n/a n/a n/a n/a n/a n/a -- -- -- \n \nTotal Benefit Payments n/a n/a n/a n/a n/a n/a n/a -- -- -- \n \nNet Administrative \nExpenses n/a n/a n/a n/a n/a n/a n/a -- -- -- \n \nTotal Deductions \nfrom Fiduciary Net Position \nn/a \nn/a \nn/a \nn/a \nn/a \nn/a \nn/a \n-- \n-- -- \n \n146 \n \n Statistical Section \nChanges in Fiduciary Net Position \n(in thousands) \n \nERS \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nPSERS \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nGJRS \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nLRS \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nGMPF \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \n \n2013 \n \n2014 \n \n2015 \n \n2016 \n \n2017 \n \n2018 \n \n2019 \n \n2020 \n \n2021 \n \n2022 \n \n$1,893,796 $2,483,923 $1,026,033 $ 768,829 $2,136,780 $1,855,320 $1,558,875 $1,383,544 $4,494,585 $(1,199,732) \n \n1,289,480 1,322,195 1,349,600 1,363,226 1,412,048 1,428,939 1,458,589 1,498,730 1,448,966 1,517,663 \n \n(5,009) \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n599,307 1,161,728 (323,567) (594,397) 724,732 426,381 100,286 (115,186) 3,045,619 (2,717,395) \n \n114,434 57,554 -- 56,880 \n \n152,618 58,153 -- 94,465 \n \n60,390 58,973 \n-- 1,417 \n \n40,314 59,689 \n-- (19,375) \n \n126,076 61,717 -- 64,359 \n \n109,856 63,852 -- 46,004 \n \n93,072 65,623 \n-- 27,449 \n \n84,747 68,086 \n-- 16,661 \n \n310,191 68,469 -- \n241,722 \n \n(103,398) 70,340 -- \n(173,738) \n \n48,791 16,668 \n-- 32,123 \n \n67,118 18,217 \n-- 48,901 \n \n24,018 19,956 \n-- 4,062 \n \n18,185 20,026 \n-- (1,841) \n \n60,849 22,678 \n-- 38,171 \n \n51,353 25,878 \n-- 25,475 \n \n41,550 28,835 \n-- 12,715 \n \n36,883 30,325 \n-- 6,558 \n \n151,363 31,867 -- \n119,496 \n \n(53,906) 34,966 \n-- (88,872) \n \n4,074 2,031 \n-- 2,043 \n \n5,296 1,983 \n-- 3,313 \n \n1,516 1,951 \n-- (435) \n \n691 2,075 \n-- (1,384) \n \n4,068 2,062 \n-- 2,006 \n \n3,285 2,077 \n-- 1,208 \n \n2,567 2,216 \n-- 351 \n \n2,149 2,121 \n-- 28 \n \n10,218 2,073 -- 8,145 \n \n(4,504) 2,178 \n-- (6,682) \n \n3,077 803 -- \n2,274 \n \n4,071 951 -- \n3,120 \n \n2,478 1,017 \n-- 1,461 \n \n2,230 1,225 \n-- 1,005 \n \n4,280 1,286 \n-- 2,994 \n \n4,305 1,363 \n-- 2,942 \n \n4,220 1,456 \n-- 2,764 \n \n4,096 1,546 \n-- 2,550 \n \n11,393 1,683 -- 9,710 \n \n(1,996) 1,793 \n-- (3,789) \n \n(continued) 147 \n \n Statistical Section \nChanges in Fiduciary Net Position \n(in thousands) \n \nSEAD - OPEB \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nDefined Contribution Plan - GDCP \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nDefined Contribution Plan - 401(k) \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nDefined Contribution Plan - 457 \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position Survivors' Benefit Fund \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \n \n2013 \n \n2014 \n \n2015 \n \n2016 \n \n2017 \n \n2018 \n \n2019 \n \n2020 \n \n2021 \n \n2022 \n \n$ 113,223 $ 159,370 $ \n \n28,685 \n \n29,305 \n \n5,009 \n \n5 \n \n89,547 130,070 \n \n42,063 $ 33,407 \n2 8,658 \n \n16,490 $ 129,344 $ 105,141 $ \n \n34,510 \n \n36,634 \n \n36,930 \n \n2 \n \n-- \n \n-- \n \n(18,018) 92,710 \n \n68,211 \n \n82,526 $ 38,132 \n-- 44,394 \n \n68,336 $ 365,480 $ (176,728) \n \n45,474 \n \n55,377 \n \n55,808 \n \n-- \n \n-- \n \n-- \n \n22,862 310,103 (232,536) \n \n16,813 15,584 \n-- 1,229 \n \n17,658 18,721 \n-- (1,063) \n \n16,981 23,330 \n-- (6,349) \n \n20,299 12,712 \n-- 7,587 \n \n13,865 12,329 \n-- 1,536 \n \n14,229 10,932 \n-- 3,297 \n \n22,902 11,823 \n-- 11,079 \n \n23,736 11,430 \n-- 12,306 \n \n13,892 11,612 \n-- 2,280 \n \n8,236 11,065 \n-- (2,829) \n \n116,490 59,808 -- 56,682 \n \n154,942 45,433 -- \n109,509 \n \n109,448 98,183 -- 11,265 \n \n116,114 49,340 -- 66,774 \n \n220,724 58,962 -- \n161,762 \n \n228,439 67,742 -- \n160,697 \n \n228,590 83,075 -- \n145,515 \n \n222,053 96,171 -- \n125,882 \n \n556,488 130,906 \n-- 425,582 \n \n(18,203) 141,030 \n-- (159,233) \n \n74,490 64,384 \n-- 10,106 \n \n91,369 46,619 \n-- 44,750 \n \n36,436 51,345 \n-- (14,909) \n \n25,268 44,108 \n-- (18,840) \n \n78,440 39,661 \n-- 38,779 \n \n66,881 41,132 \n-- 25,749 \n \n59,417 42,805 \n-- 16,612 \n \n45,804 40,812 \n-- 4,992 \n \n182,585 52,878 -- \n129,707 \n \n(62,019) 51,025 \n-- (113,044) \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \n8,701 \n \n49,353 (25,611) \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \n-- \n \n-- \n \n-- \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \n-- \n \n-- \n \n-- \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \n8,701 \n \n49,353 (25,611) \n \n148 \n \n Statistical Section \nNumber of Retirees \n \nERS Retirees \n \nPSERS Retirees \n \n2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 \n0 \n \n10,000 \n \n20,000 \n \n30,000 \n \n54,530 54,059 53,249 52,275 50,863 49,632 48,449 47,180 45,819 44,546 \n40,000 50,000 60,000 \n \n2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 \n0 \n \nGJRS Retirees \n \n10,000 \nLRS Retirees \n \n19,852 19,509 19,232 18,990 18,492 18,104 17,626 16,994 16,434 15,742 \n20,000 \n \n2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 \n0 \n \n295 290 278 262 \n \n467 449 414 400 358 346 \n \n50 100 150 200 250 300 350 400 450 500 \n \nGMPF Retirees \n \n2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 \n \n269 269 267 263 257 260 259 259 \n \n281 278 \n \n210 \n \n220 \n \n230 \n \n240 \n \n250 \n \n260 \n \n270 \n \n280 \n \n2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 \n0 \n \n1,472 1,362 1,223 1,148 1,076 985 915 844 795 739 \n200 400 600 800 1,000 1,200 1,400 1,600 \n \n149 \n \n Statistical Section \nAverage Monthly Payments to Retirees \n \nERS \n \n$2,600 \n \n$2,400 \n \n$2,200 \n \n$2,000 \n \n$1,800 \n \n$1,600 \n \n$1,400 \n \n$1,200 \n \n$1,000 \n \n2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nGJRS \n \n$6,500 \n \n$6,000 \n \n$5,500 \n \n$5,000 \n \n$4,500 \n \n$4,000 \n \n$3,500 \n \n$3,000 \n \n2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nGMPF \n \n$100 $90 $80 $70 $60 $50 $40 $30 $20 \n \n2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nPSERS \n \n$320 $300 $280 $260 $240 $220 $200 $180 \n \n2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nLRS \n$650 \n \n$600 \n \n$550 \n \n$500 \n \n$450 \n \n$400 \n \n2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \n150 \n \n Statistical Section \nAnnual Benefit \n \n$1,600,000 \n \nERS Annual Benefit \n \n$1,500,000 \n \nThousands \n \n$1,400,000 \n \n$1,300,000 \n \n$1,200,000 \n \nThousands \n \n$1,100,000 \n \n2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \n$35,000 $30,000 \n \nGJRS Annual Benefit \n \n$25,000 $20,000 \n \n$15,000 $10,000 \n \n$5,000 \n \n2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nGMPF Annual Benefit \n \nThousands \n \n$1,600 \n \n$1,400 \n \n$1,200 \n \n$1,000 \n \n$800 \n \n$600 \n \n$400 \n \n2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nThousands \n \nThousands \n \n$80,000 \n \nPSERS Annual Benefit \n \n$70,000 \n \n$60,000 \n \n$50,000 \n \n$40,000 \n \n2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nLRS Annual Benefit \n$2,000 \n \n$1,800 \n \n$1,600 \n \n$1,400 \n \n$1,200 \n \n$1,000 \n \n2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \n151 \n \n Statistical Section \nWithdrawal Statistics \n \nERS Withdrawals \n \n9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 \n0 \n \n2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nPSERS Withdrawals \n7,000 6,000 5,000 4,000 3,000 2,000 1,000 \n0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nGJRS Withdrawals \n14 12 10 \n8 6 4 2 0 \n2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nLRS Withdrawals \n14 12 10 \n8 6 4 2 0 \n2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nERS Average Withdrawal \n \n$2,000 $1,900 $1,800 $1,700 $1,600 $1,500 $1,400 $1,300 $1,200 $1,100 \n \n2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nPSERS Average Withdrawal \n \n$340 $320 $300 $280 $260 $240 $220 $200 $180 $160 \n2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nGJRS Average Withdrawal \n \n$120,000 $110,000 $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 \n$0 \n \n2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nLRS Average Withdrawal \n$14,000 $12,000 $10,000 \n$8,000 $6,000 $4,000 $2,000 \n$0 \n2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nNote: The GMPF Plan does not have a refund feature. \n \nERS Annual Withdrawal (in thousands) \n \n$9,500 $9,000 $8,500 $8,000 $7,500 $7,000 $6,500 $6,000 $5,500 $5,000 \n \n2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nPSERS Annual Withdrawal (in thousands) \n$1,200 $1,000 \n$800 $600 $400 $200 \n$0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nGJRS Annual Withdrawal (in thousands) \n \n$900 $800 $700 $600 $500 $400 $300 $200 $100 \n$0 \n \n2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nLRS Annual Withdrawal (in thousands) \n \n$100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 \n \n2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \n152 \n \n Statistical Section \nAverage Monthly Benefit Payment for New Retirees - ERS \n \nYears of Credited Service \n \n10-15 \n \n16-20 \n \n21-25 \n \n26-30 \n \nOver 30 \n \nTotal \n \n2013 \n \nAverage Monthly Benefit \n \n$ 836.73 $ 1,183.19 $ 1,650.14 $ 2,120.33 $ 3,487.96 $ 2,088.46 \n \nAverage Final Average Salary $ 3,391.36 $ 3,339.84 $ 3,411.24 $ 3,765.16 $ 4,659.17 $ 3,855.98 \n \nNumber of Retirees \n \n684 \n \n453 \n \n466 \n \n780 \n \n1,033 \n \n3,416 \n \n2014 \n \nAverage Monthly Benefit \n \n$ 769.91 $ 1,232.07 $ 1,527.47 $ 2,057.32 $ 3,242.25 $ 1,870.02 \n \nAverage Final Average Salary $ 3,309.44 $ 3,337.66 $ 3,263.54 $ 3,718.37 $ 4,486.34 $ 3,699.86 \n \nNumber of Retirees \n \n483 \n \n306 \n \n311 \n \n477 \n \n542 \n \n2,119 \n \n2015 \n \nAverage Monthly Benefit \n \n$ 750.98 $ 1,224.00 $ 1,620.88 $ 2,068.82 $ 3,074.69 $ 1,837.97 \n \nAverage Final Average Salary $ 3,269.25 $ 3,443.88 $ 3,547.63 $ 3,750.99 $ 4,536.68 $ 3,760.27 \n \nNumber of Retirees \n \n524 \n \n316 \n \n341 \n \n623 \n \n561 \n \n2,365 \n \n2016 \n \nAverage Monthly Benefit \n \n$ 759.54 $ 1,224.52 $ 1,760.28 $ 2,171.75 $ 2,996.81 $ 1,783.98 \n \nAverage Final Average Salary $ 3,189.20 $ 3,376.84 $ 3,657.08 $ 3,935.01 $ 4,618.83 $ 3,764.34 \n \nNumber of Retirees \n \n559 \n \n340 \n \n330 \n \n530 \n \n466 \n \n2,225 \n \n2017 \n \nAverage Monthly Benefit \n \n$ 796.76 $ 1,204.27 $ 1,786.30 $ 2,109.53 $ 2,870.19 $ 1,732.36 \n \nAverage Final Average Salary $ 3,479.90 $ 3,405.67 $ 3,850.73 $ 3,813.78 $ 4,595.25 $ 3,829.66 \n \nNumber of Retirees \n \n551 \n \n395 \n \n359 \n \n453 \n \n470 \n \n2,228 \n \n2018 \n \nAverage Monthly Benefit \n \n$ 794.94 $ 1,318.26 $ 1,679.64 $ 2,302.80 $ 2,879.55 $ 1,791.49 \n \nAverage Final Average Salary $ 3,505.83 $ 3,674.56 $ 3,707.56 $ 4,154.11 $ 4,638.01 $ 3,950.06 \n \nNumber of Retirees \n \n570 \n \n389 \n \n306 \n \n525 \n \n476 \n \n2,266 \n \n2019 \n \nAverage Monthly Benefit \n \n$ 806.32 $ 1,332.96 $ 1,888.94 $ 2,269.75 $ 3,089.58 $ 1,852.26 \n \nAverage Final Average Salary $ 3,624.77 $ 3,867.03 $ 4,173.06 $ 4,178.96 $ 4,954.06 $ 4,153.40 \n \nNumber of Retirees \n \n624 \n \n436 \n \n335 \n \n461 \n \n545 \n \n2,401 \n \n2020 \n \nAverage Monthly Benefit \n \n$ 790.83 $ 1,310.46 $ 1,755.20 $ 2,335.40 $ 3,234.98 $ 1,935.05 \n \nAverage Final Average Salary $ 3,609.89 $ 3,733.97 $ 3,853.51 $ 4,268.19 $ 5,132.48 $ 4,167.37 \n \nNumber of Retirees \n \n469 \n \n368 \n \n341 \n \n441 \n \n501 \n \n2,120 \n \n2021 \n \nAverage Monthly Benefit \n \n$ 796.58 $ 1,418.00 $ 1,900.60 $ 2,530.98 $ 3,365.15 $ 2,011.77 \n \nAverage Final Average Salary $ 3,746.21 $ 3,920.47 $ 4,121.21 $ 4,605.37 $ 5,274.73 $ 4,350.21 \n \nNumber of Retirees \n \n493 \n \n405 \n \n364 \n \n462 \n \n473 \n \n2,197 \n \n2022 \n \nAverage Monthly Benefit \n \n$ 709.09 $ 1,334.42 $ 1,965.53 $ 2,516.64 $ 3,317.22 $ 1,943.10 \n \nAverage Final Average Salary $ 3,787.91 $ 3,960.88 $ 4,361.27 $ 4,733.49 $ 5,277.17 $ 4,415.42 \n \nNumber of Retirees \n \n430 \n \n353 \n \n352 \n \n378 \n \n379 \n \n1,892 \n \n(continued) 153 \n \n Statistical Section \nAverage Monthly Benefit Payment for New Retirees - PSERS \n \n2013 Average Monthly Benefit Number of Retirees 2014 Average Monthly Benefit Number of Retirees 2015 Average Monthly Benefit Number of Retirees 2016 Average Monthly Benefit Number of Retirees 2017 Average Monthly Benefit Number of Retirees 2018 Average Monthly Benefit Number of Retirees 2019 Average Monthly Benefit Number of Retirees 2020 Average Monthly Benefit Number of Retirees 2021 Average Monthly Benefit Number of Retirees 2022 Average Monthly Benefit Number of Retirees \n \n10-15 \n \n16-20 \n \nYears of Credited Service \n \n21-25 \n \n26-30 \n \nOver 30 \n \nTotal \n \n$ 159.34 $ 232.10 $ 300.66 $ 360.75 $ 478.49 $ 245.72 \n \n580 \n \n255 \n \n175 \n \n113 \n \n133 \n \n1,256 \n \n$ 154.20 $ 227.41 $ 297.58 $ 345.98 $ 437.20 $ 233.71 \n \n603 \n \n268 \n \n147 \n \n121 \n \n131 \n \n1,270 \n \n$ 155.20 $ 225.02 $ 290.82 $ 360.11 $ 471.12 $ 233.25 \n \n568 \n \n254 \n \n166 \n \n105 \n \n99 \n \n1,192 \n \n$ 160.28 $ 232.09 $ 298.45 $ 358.11 $ 489.48 $ 242.18 \n \n529 \n \n273 \n \n454 \n \n103 \n \n103 \n \n1,162 \n \n$ 153.93 $ 226.90 $ 286.35 $ 348.16 $ 437.62 $ 228.12 \n \n515 \n \n230 \n \n126 \n \n78 \n \n104 \n \n1,053 \n \n$ 156.77 $ 228.48 $ 293.26 $ 363.46 $ 480.15 $ 238.68 \n \n508 \n \n241 \n \n148 \n \n91 \n \n102 \n \n1,090 \n \n$ 162.22 $ 225.88 $ 301.08 $ 366.63 $ 485.44 $ 245.95 \n \n486 \n \n266 \n \n162 \n \n109 \n \n100 \n \n1,123 \n \n$ 169.11 $ 237.94 $ 306.69 $ 376.31 $ 479.54 $ 257.59 \n \n424 \n \n230 \n \n119 \n \n73 \n \n124 \n \n970 \n \n$ 168.36 $ 232.23 $ 299.31 $ 382.30 $ 486.34 $ 262.55 \n \n454 \n \n270 \n \n185 \n \n94 \n \n147 \n \n1,150 \n \n$ 169.70 $ 241.02 $ 308.05 $ 372.07 $ 503.79 $ 258.35 \n \n500 \n \n298 \n \n177 \n \n101 \n \n119 \n \n1,195 \n \nNote: PSERS is not a final average pay plan. \n \n(continued) 154 \n \n Statistical Section \nAverage Monthly Benefit Payment for New Retirees - GJRS \n \nYears of Credited Service \n \n10-15 \n \n16-20 \n \n21-25 \n \n26-30 \n \nOver 30 \n \nTotal \n \n2013 \n \nAverage Monthly Benefit \n \n$ 5,179.20 $ 5,844.29 $ 6,170.52 $ 7,954.14 $ 6,169.77 $ 6,132.24 \n \nAverage Final Average Salary $ 9,271.48 $ 8,344.35 $ 8,370.72 $ 10,624.52 $ 8,864.27 $ 9,010.27 \n \nNumber of Retirees \n \n8 \n \n7 \n \n7 \n \n5 \n \n7 \n \n34 \n \n2014 \n \nAverage Monthly Benefit \n \n$ 2,989.92 $ 4,468.12 $ 6,496.50 $ \n \nAverage Final Average Salary $ 6,265.39 $ 7,772.95 $ 8,998.48 $ \n \nNumber of Retirees \n \n6 \n \n2 \n \n7 \n \n-- $ 2,703.82 $ 4,470.15 \n \n-- $ 4,289.57 $ 7,166.46 \n \n-- \n \n3 \n \n18 \n \n2015 \n \nAverage Monthly Benefit \n \n$ 4,010.30 $ 6,317.44 $ 7,051.15 $ 7,589.28 $ 2,406.28 $ 6,267.69 \n \nAverage Final Average Salary $ 6,937.39 $ 9,141.51 $ 9,751.01 $ 10,165.12 $ 3,222.98 $ 8,905.45 \n \nNumber of Retirees \n \n2 \n \n5 \n \n7 \n \n2 \n \n1 \n \n17 \n \n2016 \n \nAverage Monthly Benefit \n \n$ \n \nAverage Final Average Salary $ \n \nNumber of Retirees \n \n0.00 $ 6,534.36 $ 8,121.58 $ \n \n0.00 $ 9,655.37 $ 11,204.04 $ \n \n0 \n \n6 \n \n2 \n \n-- $ 8,635.31 $ 7,120.51 \n \n-- $ 11,566.18 $ 10,211.83 \n \n-- \n \n1 \n \n9 \n \n2017 \n \nAverage Monthly Benefit \n \n$4,519.89 \n \nAverage Final Average Salary $9,049.84 \n \nNumber of Retirees \n \n10 \n \n$ 6,690.09 $ 8,737.31 $ 5,895.46 $ 8,026.56 $ 6,964.60 \n \n$ 9,833.21 $ 12,013.62 $ 7,896.41 $ 10,750.81 $ 10,232.13 \n \n18 \n \n13 \n \n4 \n \n10 \n \n55 \n \n2018 \n \nAverage Monthly Benefit \n \n$ 6,056.07 $ 7,565.45 $ 7,700.44 $ 7,979.26 $ \n \nAverage Final Average Salary $ 11,385.55 $ 11,096.74 $ 10,618.33 $ 10,687.46 $ \n \nNumber of Retirees \n \n3 \n \n5 \n \n7 \n \n2 \n \n-- $ 7,403.36 \n \n-- $ 10,902.57 \n \n0 \n \n17 \n \n2019 \n \nAverage Monthly Benefit \n \n$ 4,646.94 $ 6,293.69 $ 8,486.61 $ 7,795.06 $8,348.20 \n \nAverage Final Average Salary $ 8,909.34 $ 9,278.67 $ 11,566.18 $ 11,014.40 $11,181.62 \n \nNumber of Retirees \n \n9 \n \n10 \n \n7 \n \n8 \n \n5 \n \n$ 6,878.64 $ 10,204.03 \n39 \n \n2020 \n \nAverage Monthly Benefit \n \n$ 4,438.61 $ 5,557.00 $ 7,647.49 $ 8,800.28 $ 9,205.45 $ 6,727.54 \n \nAverage Final Average Salary $ 9,230.72 $ 10,079.17 $ 11,629.28 $ 11,787.15 $ 12,329.82 $ 10,805.40 \n \nNumber of Retirees \n \n4 \n \n6 \n \n5 \n \n2 \n \n3 \n \n20 \n \n2021 \n \nAverage Monthly Benefit \n \n$ 4,694.76 $ 7,567.54 $ 8,213.18 $ 7,598.85 $ 8,109.37 $ 7,518.43 \n \nAverage Final Average Salary $ 8,627.67 $ 11,611.51 $ 11,133.07 $ 10,177.95 $ 10,861.73 $ 10,737.85 \n \nNumber of Retirees \n \n5 \n \n10 \n \n12 \n \n7 \n \n8 \n \n42 \n \n2022 \n \nAverage Monthly Benefit \n \n$ 5,644.09 $ 7,158.87 $ 8,329.52 $ 8,800.28 $ 7,179.60 $ 7,233.65 \n \nAverage Final Average Salary $ 11,625.29 $ 10,448.48 $ 11,522.28 $ 11,787.15 $ 9,616.41 $ 10,930.39 \n \nNumber of Retirees \n \n5 \n \n6 \n \n5 \n \n2 \n \n4 \n \n22 \n \n(continued) 155 \n \n Statistical Section \nAverage Monthly Benefit Payment for New Retirees - LRS \n \n2013 Average Monthly Benefit Number of Retirees 2014 Average Monthly Benefit Number of Retirees 2015 Average Monthly Benefit Number of Retirees 2016 Average Monthly Benefit Number of Retirees 2017 Average Monthly Benefit Number of Retirees 2018 Average Monthly Benefit Number of Retirees 2019 Average Monthly Benefit Number of Retirees 2020 Average Monthly Benefit Number of Retirees 2021 Average Monthly Benefit Number of Retirees 2022 Average Monthly Benefit Number of Retirees \n \n8-14 \n \n15-19 \n \nYears of Credited Service \n \n20-24 \n \n25-29 \n \nOver 29 \n \nTotal \n \n$ 308.15 $ 568.93 $ 670.94 $ \n \n14 \n \n4 \n \n2 \n \n-- $ 1,166.93 $ 497.03 \n \n-- \n \n3 \n \n23 \n \n$ 289.25 $ 480.21 $ \n \n3 \n \n1 \n \n-- $ -- \n \n-- $ -- \n \n-- $ 336.99 \n \n-- \n \n4 \n \n$ 341.03 $ 382.95 $ 642.84 $ \n \n5 \n \n1 \n \n3 \n \n-- $ 1,228.50 $ 588.51 \n \n-- \n \n2 \n \n11 \n \n$ 322.51 $ 524.09 $ \n \n5 \n \n2 \n \n-- $ -- \n \n-- $ -- \n \n-- $ 380.11 \n \n-- \n \n7 \n \n$ 362.52 $ 557.02 $ 740.79 $ \n \n6 \n \n3 \n \n2 \n \n-- $ -- \n \n-- $ 484.34 \n \n-- \n \n11 \n \n$ 323.56 $ 476.35 $ 719.16 $ \n \n5 \n \n3 \n \n1 \n \n-- $ -- \n \n-- $ 418.44 \n \n-- \n \n9 \n \n$ 358.24 $ 493.00 $ 658.44 $ 793.55 $ \n \n6 \n \n2 \n \n2 \n \n2 \n \n-- $ 503.28 \n \n-- \n \n12 \n \n$ 374.69 $ 494.79 $ \n \n5 \n \n3 \n \n-- $ 640.36 $ \n \n-- \n \n1 \n \n-- $ 444.25 \n \n-- \n \n9 \n \n$ 303.85 $ 568.87 $ 733.00 $ 922.17 $ 1,080.00 $ 539.53 \n \n10 \n \n3 \n \n3 \n \n3 \n \n1 \n \n20 \n \n$ 312.07 $ 648.00 $ \n \n9 \n \n1 \n \n-- $ -- \n \n-- $ -- \n \n-- $ 345.67 \n \n-- \n \n10 \n \nNote: LRS is not a final average pay plan. \n \n(continued) 156 \n \n Statistical Section \nAverage Monthly Benefit Payment for New Retirees - GMPF \n \n2013 Average Monthly Benefit Number of Retirees 2014 Average Monthly Benefit Number of Retirees 2015 Average Monthly Benefit Number of Retirees 2016 Average Monthly Benefit Number of Retirees 2017 Average Monthly Benefit Number of Retirees 2018 Average Monthly Benefit Number of Retirees 2019 Average Monthly Benefit Number of Retirees 2020 Average Monthly Benefit Number of Retirees 2021 Average Monthly Benefit Number of Retirees 2022 Average Monthly Benefit Number of Retirees \nNote: GMPF is not a final average pay plan. \n \n20-25 \n \nYears of Credited Service \n \n26-30 \n \nOver 30 \n \nTotal \n \n$ 59.44 $ 89.55 $ 100.00 $ 88.29 \n \n18 \n \n22 \n \n42 \n \n82 \n \n$ 61.11 $ 90.53 $ 100.00 $ 91.02 \n \n9 \n \n19 \n \n31 \n \n59 \n \n$ 62.07 $ 94.10 $ 100.00 $ 86.99 \n \n15 \n \n16 \n \n20 \n \n51 \n \n$ 66.30 $ 89.29 $ 100.00 $ 85.07 \n \n27 \n \n14 \n \n30 \n \n71 \n \n$ 65.00 $ 89.05 $ 100.00 $ 91.09 \n \n11 \n \n21 \n \n37 \n \n69 \n \n$ 61.00 $ 87.39 $ 100.00 $ 91.17 \n \n10 \n \n23 \n \n44 \n \n77 \n \n$ 67.14 $ 91.11 $ 100.00 $ 87.38 \n \n21 \n \n36 \n \n23 \n \n80 \n \n$ 61.25 $ 89.29 $ 100.00 $ 86.49 \n \n20 \n \n21 \n \n33 \n \n74 \n \n$ 59.57 $ 90.91 $ 100.00 $ 85.09 \n \n35 \n \n33 \n \n47 \n \n115 \n \n$ 61.05 $ 89.17 $ 100.00 $ 78.98 \n \n57 \n \n24 \n \n37 \n \n118 \n \n157 \n \n Statistical Section \nRetired Members by Retirement Type \nERS June 30, 2022 \n \nAmount of Monthly Benefit \n \n$ \n \n1 - 500 \n \n501 - 1,000 \n \n1,001 - 1,500 \n \n1,501 - 2,000 \n \n2,001 - 2,500 \n \n2,501 - 3,000 \n \n3,001 - 3,500 \n \n3,501 - 4,000 \n \n4,001 - 4,500 \n \n4,501 - 5,000 \n \n5,001 - 5,500 \n \n5,501 - 6,000 \n \nover 6,000 \n \nService \n4,126 9,051 7,630 5,767 4,569 3,479 2,685 2,207 1,689 1,441 1,151 \n754 1,824 \n \nRetirement Type \n \nDisability Survivor \n \n275 \n \n514 \n \n1,039 \n \n435 \n \n1,145 \n \n278 \n \n974 \n \n193 \n \n779 \n \n132 \n \n578 \n \n85 \n \n446 \n \n62 \n \n352 \n \n41 \n \n241 \n \n25 \n \n182 \n \n15 \n \n123 \n \n7 \n \n79 \n \n7 \n \n131 \n \n15 \n \nTotals \n \n46,373 \n \n6,344 \n \n1,809 \n \nSGLI \n4 -- -- -- -- -- -- -- -- -- -- -- -- \n4 \n \nPSERS June 30, 2022 \n \nAmount of Monthly Benefit \n \n$ \n \n1 - 100 \n \n101 - 200 \n \n201 - 300 \n \n301 - 400 \n \n401 - 500 \n \nover 500 \n \nTotals \n \nRetirement Type \n \nService Disability Survivor \n \n116 \n \n4 \n \n236 \n \n5,732 \n \n31 \n \n222 \n \n5,878 \n \n203 \n \n59 \n \n3,030 \n \n362 \n \n9 \n \n1,834 \n \n264 \n \n7 \n \n1,637 \n \n227 \n \n1 \n \n18,227 \n \n1,091 \n \n534 \n \n(continued) 158 \n \n Statistical Section \nRetired Members by Retirement Type \n \nGJRS June 30, 2022 \n \nAmount of Monthly Benefit \n \n$ 1 - 1,000 1,001 - 2,000 2,001 - 3,000 3,001 - 4,000 4,001 - 5,000 5,001 - 6,000 6,001 - 7,000 7,001 - 8,000 over 8,000 \n \nRetirement Type \n \nService Disability Survivor \n \n24 \n \n-- \n \n2 \n \n22 \n \n-- \n \n7 \n \n28 \n \n1 \n \n4 \n \n36 \n \n-- \n \n3 \n \n31 \n \n1 \n \n5 \n \n24 \n \n-- \n \n-- \n \n43 \n \n-- \n \n-- \n \n81 \n \n-- \n \n-- \n \n155 \n \n-- \n \n-- \n \nLRS June 30, 2022 \n \nTotals \n \n444 \n \n2 \n \n21 \n \nAmount of Monthly Benefit \n \n$ \n \n1 - 250 \n \n251 - 500 \n \n501 - 750 \n \n751 - 1,000 \n \nover 1,000 \n \nRetirement Type \n \nService Disability Survivor \n \n22 \n \n-- \n \n-- \n \n137 \n \n-- \n \n10 \n \n66 \n \n-- \n \n2 \n \n23 \n \n-- \n \n3 \n \n17 \n \n-- \n \n1 \n \nGMPF June 30, 2022 \n \nTotals \n \n265 \n \n-- \n \n16 \n \nAmount of Monthly Benefit Retirement Type \n \nService \n \n$ \n \n1 - 49 \n \n50 - 100 \n \nover 100 \n \n-- 1,472 \n-- \n \nTotals \n \n1,472 \n \n159 \n \n Statistical Section \nRetired Members by Optional Form of Benefit \n \nERS June 30, 2022 \nAmount of Monthly Benefit \n \n$ \n \n1 - 500 \n \n501 - 1,000 \n \n1,001 - 1,500 \n \n1,501 - 2,000 \n \n2,001 - 2,500 \n \n2,501 - 3,000 \n \n3,001 - 3,500 \n \n3,501 - 4,000 \n \n4,001 - 4,500 \n \n4,501 - 5,000 \n \n5,001 - 5,500 \n \n5,501 - 6,000 \n \nover 6,000 \n \nSubtotal - not including SGLI \n \nSGLI* Monthly Benefit Amount \n \n$ \n \n1 - 500 \n \nSubtotal - SGLI only Total 2% escalation** \n \nForm of Benefit Maximum Plan Option 1 Option 2 Option 3 Option 4 Option 5A Option 5B \n \n1,322 \n \n408 \n \n1,282 \n \n494 \n \n1,169 \n \n176 \n \n64 \n \n4,287 \n \n1,215 \n \n2,079 \n \n713 \n \n1,559 \n \n456 \n \n216 \n \n3,603 \n \n1,101 \n \n1,611 \n \n663 \n \n1,279 \n \n533 \n \n263 \n \n2,847 \n \n968 \n \n1,074 \n \n591 \n \n762 \n \n377 \n \n315 \n \n2,190 \n \n729 \n \n767 \n \n522 \n \n596 \n \n374 \n \n302 \n \n1,647 \n \n536 \n \n546 \n \n370 \n \n583 \n \n235 \n \n225 \n \n1,151 \n \n393 \n \n374 \n \n306 \n \n585 \n \n200 \n \n184 \n \n908 \n \n271 \n \n295 \n \n199 \n \n631 \n \n142 \n \n154 \n \n629 \n \n188 \n \n187 \n \n175 \n \n576 \n \n70 \n \n130 \n \n503 \n \n111 \n \n141 \n \n167 \n \n569 \n \n64 \n \n83 \n \n321 \n \n108 \n \n97 \n \n106 \n \n552 \n \n47 \n \n50 \n \n214 \n \n44 \n \n68 \n \n97 \n \n339 \n \n33 \n \n45 \n \n445 \n \n115 \n \n177 \n \n224 \n \n873 \n \n51 \n \n85 \n \n20,067 \n \n6,187 \n \n8,698 \n \n4,627 10,073 \n \nForm of Benefit - SGLI \n \n2,758 \n \n2,116 \n \nMaximum Plan Option 1 Option 2 Option 3 Option 4 Option 5A Option 5B \n \n1 \n \n-- \n \n2 \n \n-- \n \n-- \n \n1 \n \n-- \n \n1 20,068 \n99 \n \n-- 6,187 \n-- \n \n2 8,700 \n54 \n \n-- 4,627 \n17 \n \n-- 10,073 \n29 \n \n1 2,759 \n17 \n \n-- 2,116 \n8 \n \nMaximum Plan Single life annuity \n \nOption 1 \n \nReduced single life annuity with a guarantee of the remainder of the annuity savings fund account (contributions and interest), if any, to be paid upon the retiree's death \n \nOption 2 \n \n100% joint and survivor annuity with a popup option upon divorce \n \nOption 3 \n \n50% joint and survivor annuity with a popup option upon divorce \n \nOption 4 \n \nVarious options, including a specified monthly amount payable to a beneficiary upon the retiree's death, several period certain annuities of varying length, and a five-year accelerated benefit \n \nOption 5A \n \n100% joint and survivor annuity with a popup option upon divorce or the death of the beneficiary before the retiree \n \nOption 5B \n \n50% joint and survivor annuity with a popup option upon divorce or the death of the beneficiary before the retiree \n \n*Supplemental Guaranteed Lifetime Income (SGLI) is an in-plan annuity purchase available to ERS retirees. Introduced in FY21, the purchase is made with Peach State Reserves funds and is a separate benefit, in addition to the retiree's service/disability benefit, but has the same optional forms and escalation option available. \n**The option to add an escalating component to the form of benefit selected was added in FY21. When escalation is selected, the monthly benefit amount increases 2% each year. \n \n(continued) 160 \n \n Statistical Section \nRetired Members by Optional Form of Benefit \n \nPSERS June 30, 2022 \nAmount of Monthly Benefit \n \n$ \n \n1 - 100 \n \n101 - 200 \n \n201 - 300 \n \n301 - 400 \n \n401 - 500 \n \nover 500 \n \nForm of Benefit \n \nMaximum Plan Option AA Option AB Option AC Option AD Option B \n \n-- \n \n36 \n \n273 \n \n3,598 \n \n1,331 \n \n439 \n \n4,734 \n \n736 \n \n251 \n \n2,706 \n \n415 \n \n81 \n \n1,761 \n \n188 \n \n68 \n \n1,680 \n \n100 \n \n36 \n \n5 \n \n26 \n \n16 \n \n10 \n \n199 \n \n408 \n \n6 \n \n118 \n \n295 \n \n5 \n \n55 \n \n139 \n \n9 \n \n19 \n \n60 \n \n2 \n \n4 \n \n43 \n \nTotals \n \n14,479 \n \n2,806 \n \n1,148 \n \n37 \n \n421 \n \n961 \n \nMaximum Plan Single life annuity \n \nOption AA \n \n100% joint and survivor annuity \n \nOption AB \n \n50% joint and survivor annuity \n \nOption AC \n \nJoint and survivor annuity with a specified monthly amount payable to a beneficiary \n \nOption AD \n \nJoint and survivor annuity with the amount payable to a beneficiary limited by the age difference between the retiree and the beneficiary \n \nOption B \n \nAnnuity for a guaranteed period of time (5, 10, 15, or 20 years). If retiree outlives guarantee period, there is no benefit due after retiree's death \n \n(continued) 161 \n \n Statistical Section \nRetired Members by Optional Form of Benefit \n \nGJRS June 30, 2022 \n \nAmount of Monthly Benefit \n \nSpousal Maximum Plan Coverage Option 1 \n \nForm of Benefit Option 2 Option 3 Option 4A Option 4B Option 4C \n \n$ 1 - 1,000 \n \n1 \n \n25 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n1,001 - 2,000 \n \n3 \n \n26 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n2,001 - 3,000 \n \n7 \n \n26 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n3,001 - 4,000 \n \n3 \n \n36 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n4,001 - 5,000 \n \n6 \n \n31 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n5,001 - 6,000 \n \n8 \n \n15 \n \n1 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n6,001 - 7,000 \n \n9 \n \n34 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n7,000 - 8,000 \n \n23 \n \n58 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \nover 8,000 \n \n29 \n \n126 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \nTotals \n \n89 \n \n377 \n \n1 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \nMaximum Plan \n \nSingle life annuity \n \nIndicates the member paid additional contributions to provide a 50% joint and survivor annuity at Spousal Coverage* retirement \n \nOption 1** \n \n100% joint and survivor annuity \n \nOption 2** \n \n66 % joint and survivor annuity \n \nOption 3** \n \n50% joint and survivor annuity \n \nOption 4A** \n \n100% joint and survivor annuity with a popup option upon death of beneficiary before the retiree \n \nOption 4B** \n \n66 % joint and survivor annuity with a popup option upon death of beneficiary before the retiree \n \nOption 4C** \n \n50% joint and survivor annuity with a popup option upon death of beneficiary before the retiree \n \n*Only available if membership start date prior to July 1, 2012 **Only available if membership start date on or after July 1, 2012 \n \n(continued) 162 \n \n Statistical Section \nRetired Members by Optional Form of Benefit \n \nLRS June 30, 2022 \n \nAmount of Monthly Benefit \n \n$ \n \n1 - 250 \n \n251 - 500 \n \n501 - 750 \n \n751 - 1,000 \n \nover 1,000 \n \nForm of Benefit \n \nMaximum Plan Option B1 Option B2 \n \n-- \n \n18 \n \n4 \n \n54 \n \n81 \n \n12 \n \n40 \n \n18 \n \n10 \n \n5 \n \n18 \n \n3 \n \n9 \n \n7 \n \n2 \n \nTotals Maximum Plan Single life annuity \n \n108 \n \n142 \n \n31 \n \nOption B1 \n \n100% joint and survivor annuity \n \nOption B2 \n \n50% joint and survivor annuity \n \nGMPF and SEAD - OPEB June 30, 2022 \n \nThe GMPF Plan provides a benefit only in one form, a life annuity. All 1,472 current retirees, therefore, have this same form of benefit. The SEAD-OPEB plan provides only a lump sum death benefit to a member's beneficiary(ies). \n \n163 \n \n Statistical Section \nPrincipal Participating Employers FY13 \nERS \nDepartment of Corrections Department of Behavioral Health and Developmental Disabilities Department of Transportation Department of Juvenile Justice Department of Labor Department of Human Resources Department of Natural Resources Department of Public Safety Department of Revenue Department of Public Health \nTotal Top Employers Total ERS Member Count PSERS \nGwinnett County Schools Cobb County Schools Dekalb County Schools Clayton County Schools Muscogee County Schools Cherokee County Schools Richmond County Schools Forsyth County Schools Henry County Schools Houston County Schools \nTotal Top Employers Total PSERS Member Count GJRS \nCouncil of Superior Courts Council of State Courts Prosecuting Attorney's Council Council of Juvenile Courts \nTotal Top Employers Total GJRS Member Count SEAD - OPEB Department of Corrections Department of Transportation Department of Behavioral Health and Developmental Disabilities Department of Human Resources Department of Juvenile Justice Department of Natural Resources Department of Labor Department of Public Safety Department of Revenue Department of Public Health \nTotal Top Employers Total ERS Member Count \n \nMember Count % of Total Plan \n \n11,770 5,101 4,283 3,472 3,362 1,732 1,724 1,636 1,024 930 \n35,034 61,554 \n \n19.0 % 8.3 7.0 5.6 5.5 2.8 2.8 2.7 1.7 1.5 \n56.9 \n \n3,839 \n \n10.1 \n \n2,547 \n \n6.7 \n \n2,197 \n \n5.8 \n \n1,106 \n \n2.9 \n \n937 \n \n2.5 \n \n879 \n \n2.3 \n \n849 \n \n2.2 \n \n834 \n \n2.2 \n \n750 \n \n2.0 \n \n682 \n \n1.8 \n \n14,620 \n \n38.5 \n \n37,919 \n \n207 \n \n40.9 \n \n115 \n \n22.7 \n \n104 \n \n20.6 \n \n71 \n \n14.0 \n \n497 \n \n98.2 \n \n506 \n \n7,624 3,774 2,911 2,441 2,047 1,462 1,334 1,275 \n673 594 \n24,135 43,127 \n \n17.6% 8.8% 6.7% 5.7% 4.7% 3.4% 3.1% 3.0% 1.6% 1.4% \n56.0% \n \n164 \n \n Statistical Section \nPrincipal Participating Employers FY22 \nERS \nDepartment of Corrections Department of Transportation Department of Behavioral Health and Developmental Disabilities Department of Juvenile Justice Department of Human Services Department of Public Safety Department of Community Supervision Department of Natural Resources Department of Labor Department of Public Health \nTotal Top Employers Total ERS Member Count PSERS \nGwinnett County Schools Cobb County Schools Dekalb County Schools Clayton County Schools Forsyth County Schools Houston County Schools Chatham County Schools Richmond County Schools Cherokee County Schools Muscogee County Schools \nTotal Top Employers Total PSERS Member Count GJRS \nCouncil of Superior Courts Council of State Court Judges Council of Juvenile Courts Solicitor General \nTotal Top Employers Total GJRS Member Count SEAD - OPEB \nDepartment of Corrections Department of Transportation Department of Human Services Department of Behavioral Health and Developmental Disabilities Department of Juvenile Justice Department of Natural Resources Department of Community Supervision Department of Public Safety Department of Labor Superior Courts of Georgia \nTotal Top Employers Total Active Member Count \n \nMember Count % of Total Plan \n \n6,118 3,589 2,995 2,366 2,302 1,732 1,698 1,685 1,058 1,045 \n24,588 52,526 \n \n11.7 % 6.8 5.7 4.5 4.4 3.3 3.2 3.2 2.0 2.0 \n46.8 \n \n3,352 \n \n10.5 \n \n1,934 \n \n6.1 \n \n1,885 \n \n5.9 \n \n1,026 \n \n3.2 \n \n955 \n \n3.0 \n \n834 \n \n2.6 \n \n820 \n \n2.6 \n \n686 \n \n2.2 \n \n657 \n \n2.1 \n \n613 \n \n1.9 \n \n12,762 \n \n40.1 \n \n31,833 \n \n215 \n \n41.1 \n \n117 \n \n22.3 \n \n74 \n \n14.1 \n \n56 \n \n10.7 \n \n462 \n \n88.2 \n \n524 \n \n2,114 \n \n12.5 \n \n1,547 \n \n9.1 \n \n808 \n \n4.8 \n \n777 \n \n4.6 \n \n674 \n \n4.0 \n \n659 \n \n3.9 \n \n623 \n \n3.7 \n \n532 \n \n3.1 \n \n446 \n \n2.6 \n \n317 \n \n1.9 \n \n8,497 \n \n50.2 \n \n16,926 \n \n165 \n \n Statistical Section \nSchedule of Revenue and Expenses State Employees' Assurance Department Active Members Fund \n \nYear ended June 30, 2022 (In thousands) \nOperating revenue: Insurance premiums Total operating revenue \n \n2022 \n \n2021 \n \n2020 \n \n2019 \n \n2018 \n \n2017 \n \n$ 479 $ 521 $ 547 $ 531 $ 540 $ 599 \n \n479 \n \n521 \n \n547 \n \n531 \n \n540 \n \n599 \n \nOperating expenses: Death benefits Administrative expenses Total operating expenses Total operating loss \n \n3,333 84 \n3,417 (2,938) \n \n4,870 77 \n4,947 (4,426) \n \n3,588 80 \n3,668 (3,121) \n \n3,424 80 \n3,504 (2,973) \n \n2,972 76 \n3,048 (2,508) \n \n4,019 64 \n4,083 (3,484) \n \nNonoperating revenues (expenses): Allocation of investment income (loss) from pooled investment fund Investment expenses Total nonoperating revenues Change in net position \n \n(47,867) (66) \n(47,933) (50,871) \n \n93,479 (70) \n93,409 88,983 \n \n16,651 (67) \n16,584 13,463 \n \n19,708 (65) \n19,643 16,670 \n \n24,493 (64) \n24,429 21,921 \n \n29,847 (62) \n29,785 26,301 \n \nTotal net position: Beginning of year End of year \n \n408,323 $ 357,452 \n \n319,340 408,323 \n \n305,877 319,340 \n \n289,207 305,877 \n \n267,286 289,207 \n \n240,985 267,286 \n \nIn fiscal year 2017, the System adopted the provisions of GASB Statement No. 74 and revised its accounting methodology with regard to the presentation of SEAD-Active, and began reporting it as a proprietary fund. In previous years it was reported as a fiduciary fund. Additional years will be displayed as they become available. \n \n166 \n \n Statistical Section \nSchedule of Membership State Employees' Assurance Department Active Members Fund \n \nFiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 \n \nCovered Lives 43,127 38,711 35,142 31,869 28,873 26,032 23,368 21,020 18,772 16,926 \n \n167 \n \n Statistical Section \n \nStatistical Data at June 30, 2022 \n \nSystem \n \nNet Position \n \nEmployer and Nonemployer Contributions \n \nERS \n \n$13.8 billion \n \nOld Plan: 19.88% New Plan: 24.63% \nGSEPS 21.57% ($619.7 million) \n \nEmployee Contributions \nOld Plan: 6% (with 4.75% pickup) \nNew Plan: 1.25% GSEPS: 1.25% ($36.1 million) \n \nActive Members \nOld Plan: (0.03%) 17 New Plan: (32.00%) 16,810 GSEPS: (67.96%) 35,699 \nTotal: 52,526 \n \nInactives 70,637 \n \nPSERS GJRS \n \n$1.0 billion $516.6 million \n \n$32.5 million \n8.81% ($10.0 million) \n \n$36 yr prior July 1, 2012 $90 yr after July 1, 2012 ($2.3 million) \n7.5% +2.5% Spousal, if \napplicable ($5.5 million) \n \n31,833 524 \n \n53,727 82 \n \nLRS \n \n$36.0 million \n \n0% (None) \n \n8.5% (with 4.75% pickup) \n($344 thousand) \n \n217 \n \n164 \n \nRetirees \nTotal: 54,530 Service: 42,094 Beneficiary: 6,472 Disability: 5,421 Inv. Sep.: 392 Law. Enf.: 147 \nSGLI: 4 \n \nAnnual Payment $1.5 billion \n \n19,852 \n \n$68.5 million \n \n467 \n \n$34.1 million \n \n281 \n \n$1.8 million \n \nAverage Monthly Benefit(1) $2,179 \n$290 \n$6,042 \n$512 \n \nGDCP \n \n$137.4 million \n \nNone \n \n7.5% ($16.2 million) \n \n11,825 \n \n125,326 \n \n2 \n \n$10 thousand \n \n$4,928 \n \nSCJRF \n \n$6 thousand \n \n$275 thousand \n \nNone \n \nNone \n \nNone \n \n4 \n \n$275 thousand \n \n$5,332 \n \nDARF \n \n$2 thousand \n \n$23 thousand \n \nNone \n \nSEAD \n \n$1.3 billion \n \nNone \n \nNew Plan: 0.23% Old Plan: 0.45% \n($2.6 million) \n \nGMPF \n \n$34.9 million \n \n$2.7 million \n \n(1) GDCP average benefit payment is an annual amount. \n \nNone \n \nNone No. Insured: \n16,926 13,834 \n168 \n \nNone 1,059 3,635 \n \n2 \nNo. Insured: 44,371 \n1,472 \n \n$23 thousand \n \n$947 \n \nNo. of Claims: 1,534 \nAmt. Pd: $58.1 million \n \nAverage Claim: $37,879 \n \n$1.5 million \n \n$89 \n \n "},{"id":"dlg_ggpd_y-ga-be400-b-pa1-b2021-belec-p-btext","title":"Comprehensive annual financial report, 2021 June 30","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":null,"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Employees' Retirement System of Georgia"],"dc_date":["2021-06-30"],"dcterms_description":["Annual report of the Employees' Retirement System of Georgia."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Employees' Retirement System of Georgia"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Employees' Retirement System of Georgia"],"dcterms_title":["Comprehensive annual financial report, 2021 June 30"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-be400-b-pa1-b2021-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-be400-b-pa1-b2021-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["annual reports"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":null},{"id":"dlg_ggpd_y-ga-be400-b-pa1-b2020-belec-p-btext","title":"Comprehensive annual financial report, 2020 June 30","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":null,"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Employees' Retirement System"],"dc_date":["2020-06-30"],"dcterms_description":["Began with: 2010.","Report year ends June 30.","Description based on: 2010; title from PDF title page (Georgia Government Publications database, viewed September 21, 2016).","Latest issue consulted: 2014 (viewed September 21, 2016)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. Employees' Retirement System"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Employees' Retirement System of Georgia"],"dcterms_title":["Comprehensive annual financial report, 2020 June 30"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-be400-b-pa1-b2020-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-be400-b-pa1-b2020-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["annual reports"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"Employees' Retirement System of Georgia \nComprehensive Annual Financial Report \n \nFiscal Year Ended June 30, 2020 \nA component unit of the State of Georgia \n \nCelebrating 70 Years of Service \n \n2 \n2020 \n \n Our Mission \nOur mission is to be the guardian of the State of Georgia's retirement plans and promote a dignified retirement for the members, retirees, and their beneficiaries. Our vision is to demonstrate an unwavering commitment to delivering accurate and timely retirement benefits utilizing a knowledgeable staff and state-of-the-art technology to best serve the retirement needs of current and future members. \nOur Values \nOur Core Values are: Integrity Customer Service Operational Excellence Continuous Improvement and Innovation \n \n Employees' Retirement System of Georgia \n \nComprehensive Annual Financial Report \n \nFiscal Year Ended June 30, 2020 \nA component unit of the State of Georgia \n \nServing Those Who Serve Georgia \n \nJames A. Potvin Executive Director \n \n Table of Contents \n \nIntroductory Section \n \nBoards of Trustees \n \n4 \n \nLetter of Transmittal \n \n5 \n \nCertificate of Achievement for Excellence in \n \n9 \n \nFinancial Reporting \n \nPPCC Recognition Award for Funding \n \n10 \n \nAdministrative Staff and Organization \n \n11 \n \nOrganizational Chart \n \n12 \n \nFinancial Section \n \nIndependent Auditors' Report \n \n14 \n \nManagement's Discussion and Analysis (Unaudited) \n \n16 \n \nBasic Financial Statements: \n \nCombining Statement of Fiduciary Net Position as of \n \n24 \n \nJune 30, 2020 \n \nDefined Benefit Plans-Combining Statement of \n \n25 \n \nFiduciary Net Position as of June 30, 2020 \n \nCombining Statement of Changes in Fiduciary Net \n \n26 \n \nPosition for the Year Ended June 30, 2020 \n \nDefined Benefit Plans-Combining Statement of Changes 27 in Fiduciary Net Position for the Year Ended June 30, 2020 \n \nStatement of Net Position-State Employees' Assurance 28 Department Active Members Fund \n \nStatement of Revenues, Expenses, and Changes in Net 29 Position-State Employees' Assurance Department Active Members Fund \n \nStatement of Cash Flows-State Employees' Assurance 30 Department Active Members Fund \n \nNotes to Financial Statements \n \n31 \n \nRequired Supplementary Information (Unaudited): \n \nDefined Benefit Plans: \n \nSchedule of Employers' and Nonemployer \n \n70 \n \nContributions \n \nSchedules of Employers' and Nonemployer Net \n \n72 \n \nPension/OPEB Liability and Related Ratios \n \nSchedules of Changes in Employers' and \n \n74 \n \nNonemployer Net Pension/OPEB Liability \n \nSchedule of Investment Returns \n \n80 \n \nSchedules of the Systems' Proportionate Share \n \n81 \n \nof the Net OPEB Liability \n \nSchedules of the System's Contributions to OPEB Plans 82 \n \nNotes to Required Supplementary Information (Unaudited) 83 \n \nAdditional Information: \n \nSchedule of Administrative Expenses \n \n88 \n \nContributions and Expenses \n \nSchedule of Investment Expenses \n \n89 \n \nInvestment Section \n \nInvestment Overview \n \n91 \n \nPooled Investment Fund/Rates of Return \n \n92 \n \nAsset Allocation at Fair Value/Investment Summary \n \n93 \n \nSchedule of Fees and Commissions \n \n94 \n \nTwenty Largest Equity Holdings \n \n95 \n \nTop 10 Fixed Income Holdings \n \n96 \n \nActuarial Section \n \nActuary's Certification Letters \n \n98 \n \nSummary of Plan Provisions \n \n110 \n \nSummary of Actuarial Assumptions \n \n112 \n \nActive Members \n \n124 \n \nMember and Employer Contribution Rates \n \n126 \n \nDefined Benefit Plans-Schedules of Funding Progress \n \n128 \n \nSchedule of Retirees Added to and Removed from Rolls \n \n130 \n \nAnalysis of Change in Unfunded Accrued Liability (UAL) \n \n132 \n \nSolvency Test Results \n \n135 \n \nStatistical Section \n \nIntroduction \n \n138 \n \nAdditions by Source-Contribution/Investment Income \n \n139 \n \nDeductions by Type \n \n142 \n \nChanges in Fiduciary Net Position \n \n146 \n \nNumber of Retirees \n \n148 \n \nAverage Monthly Payments to Retirees \n \n149 \n \nAnnual Benefit \n \n150 \n \nWithdrawal Statistics \n \n151 \n \nAverage Monthly Benefit Payment for New Retirees \n \n152 \n \nRetired Members by Retirement Type \n \n157 \n \nRetired Members by Optional Form of Benefit \n \n159 \n \nPrincipal Participating Employers \n \n163 \n \nSchedule of Revenue and Expenses-State \n \n165 \n \nEmployees' Assurance Department Active \n \nMembers Fund \n \nSchedule of Membership-State Employees' \n \n166 \n \nAssurance Department Active Members Fund \n \nStatistical Data at June 30, 2020 \n \n167 \n \nAppendix \n \n168 \n \n Introductory Section \nCelebrating 70 Years of Service \nBoard Chair Eli Niepoky and Executive Director Jim Potvin \n \n Introductory Section \nBoards of Trustees \nas of September 30, 2020 Employees' Retirement System, Legislative Retirement System, \nGeorgia Defined Contribution Plan, and Georgia Military Pension Fund \n \nEli P. Niepoky Chair \n \nFrank F. Thach, Jr. Vice-Chair \n \nLonice Barrett \n \nSteve McCoy \n \nGreg S. Griffin \n \nPublic School Employee Retirement System* \n \nAlex Atwood \n \nHomer Bryson \n \nState Employees' Assurance Department** \n \nMichael Lowe \n \nRichard Taylor \n \nMark Butler \n \nGeorgia Judicial Retirement System* \n \nVacant \n \nEllen S. Golden \n \nRon Mullins \n \nVacant \n \n*The PSERS and GJRS boards are comprised of the members of the ERS board and additional members shown under each plan. \n**SEAD -- ERS Board Members Greg S. Griffin, Steve McCoy, Eli P. Niepoky, and Alex Atwood serve in addition to the two members shown above. \n \n4 \n \n Introductory Section \n \nLetter of Transmittal \n \nSeptember 30, 2020 \n \nTwo Northside 75 Atlanta, GA 30318 \n \nI am pleased to present the Comprehensive Annual Financial Report of the retirement systems and programs administered by the Employees' Retirement System of Georgia (the System) for the fiscal year ended June 30, 2020. The management of the System is responsible for the accuracy, completeness, and fairness of the presentation, including all disclosures. It is to the best of our knowledge and belief that the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the System. \nProfile of the System \nThe System was established in 1949 by an Act of the Georgia General Assembly to provide benefits for all State employees. Plans administered by the System include the Employees' Retirement System (ERS), the Legislative Retirement System (LRS) established in 1979, the Public School Employees Retirement System (PSERS) established in 1969, the Georgia Defined Contribution Plan (GDCP) established in 1992, the Georgia Judicial Retirement System (GJRS) established in 1998, and the Georgia Military Pension Fund (GMPF) established in 2002. In addition, the System is responsible for administering a Group Term Life Insurance Plan (SEAD), the 457 Plan established in 1974, and the 401(k) Plan established in 1994. A summary of each plan can be found on pages 31 through 41 of this report. The investments of all plans are pooled together into one fund except for the three defined contribution (DC) plans, which are maintained individually. \n \nthe state. There were 71,716 participants in the 401(k) plan with a total investment balance of $1.3 billion. The 457 plan had 12,331 participants with a total investment balance of $644.3 million. There are 470 participating employers from around the state in the 457 and 401(k) plans. \nLegislation \nThe Georgia General Assembly, which adjourned June 26, 2020 after a three-month hiatus due to COVID-19, passed four Acts affecting the System as it relates to the defined benefit and defined contribution programs it administers. \nAct 371 provides for retirement plan membership for the judge and employees of the recently established Statewide Business Court. Specifically, this bill allows individuals employed full-time as a judge for the Business Court to be eligible for JRS membership, while all other Business Court employees are eligible for membership in ERS. This is a fiscal retirement bill which was found to have no cost to either ERS or JRS. \nAct 383 changes the required plan membership of new Legislative Counsel for the General Assembly from ERS to JRS for all those employed on or after July 1, 2020. It also allows for current ERS members of Legislative Counsel to elect and continue membership in JRS for such employment. A fiscal retirement bill, Act 383 has a firstyear cost to ERS of $26,000 which is required by law to be appropriated and was concurrently funded in the FY21 Budget (Act 404). \n \nThe ERS, LRS, GDCP, GMPF, 401(k), and 457 plans are governed by a 7-member Board of Trustees (Board) made up of 3 ex-officio members, 1 governor-appointed member, and 3 Board-appointed members. PSERS has the same Board as ERS with 2 additional governor-appointed members. GJRS has the same Board as ERS with 3 additional governor-appointed members. \nAs of June 30, 2020, the System's defined benefit (DB) plans served a total of 106,628 active members and 74,395 retirees/beneficiaries from 697 employers around \n \nAct 386 allows for ERS members, after meeting specific requirements, to purchase and receive credit for all service under the Georgia Defined Contribution Program (GDCP) which was immediately prior to ERS membership. It also provides for a payment plan option to be implemented in order to pay for such service. This is a fiscal retirement bill which was found to have no cost to either ERS or GDCP as the member is required to cover full actuarial cost. \n \n(continued) 5 \n \n Introductory Section \n \nLetter of Transmittal \n \nAct 510 requires employers who hire retirees of the ERS to pay both the employer and employee contributions associated with such employment. The retiree will not accrue any additional service credit and their retirement benefit will be suspended after working 1,040 hours in a calendar year. Exceptions apply for employment with an independent contractor. This is a nonfiscal retirement bill having no financial impact on the System and is effective January 1, 2021. \nAll fiscal retirement bills are effective July 1, 2020 by law; however, nonfiscal bills become effective when the Governor signs the bill or upon enactment (if the legislation is neither signed nor vetoed). Bills signed before July 1 are effective July 1 of such year, whereas any bills enacted after July 1 and through the end of the calendar year are effective January 1 of the following year. \n \nmarkets while controlling the downside risks. This has proven to be a successful strategy for other markets and for the System. For further information on investments of the pooled fund, please refer to the Investment Section on pages 90 through 96 of this report. \n \nThe objective of the System's pension trust funds is to meet long-term benefit promises through contributions that remain approximately level as a percent of member payroll over time while maintaining an actuarially sound system. Historical information relating to the progress in meeting this objective is presented on pages 128 and 129. The latest actuarial valuations as of June 30, 2019 showed the funded ratio of four of the five of the defined benefit plans increasing. The following table shows the change in funding percentage for each of the pension systems: \n \nFY2018 \n \nFY2019 \n \nSummary of Financial Information \nThe management of the System is charged with the responsibility of maintaining a sound system of internal accounting controls. The objectives of such a system are to provide management with reasonable assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorizations, and that they are recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. The concept of reasonable assurance recognizes that first, the cost of a control should not exceed the benefits likely to be derived, and second, the evaluation of the cost and benefits requires estimates and judgments by management. \nEven though there are inherent limitations in any system of internal control, the management of the System makes every effort to ensure that through systematic reporting and internal reviews, error or fraud would be quickly detected and corrected. \nPlease refer to the Management's Discussion and Analysis starting on page 16 of this report for an overview of the financial status of the System, including a summary of the System's Fiduciary Net Position, Changes in Fiduciary Net Position, and Asset Allocations. \nFor fiscal year 2020, the pooled investment fund generated a time-weighted rate of return of 5.48%. The fund continues to invest in a mix of high-quality bonds and stocks which allows the System to participate in rising \n \nERS PSERS LRS GJRS GMPF \n \n75.3 % 83.7 % 130.7 % 108.7 % 53.6 % \n \n75.6 % 84.0 % 132.8 % 107.6 % 57.0 % \n \nFurther information regarding the funding condition of the pension plans can be found in the Actuarial Section of this report, beginning on page 97. \n \nExcellence in Financial Reporting \nFor the ninth consecutive year, the Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Employees' Retirement System of Georgia for its comprehensive annual financial report for the fiscal year ended June 30, 2019. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. \nA 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. \n \n(continued) 6 \n \n Introductory Section \n \nLetter of Transmittal \n \nInitiatives \nPandemic Impact The System was fortunate in that we already had almost all of the technology infrastructure needed to transition to a mostly-teleworking environment in place before the pandemic began, including critical areas like pension payroll and the call center. We needed about a week to get a handful of individuals set up to work remotely, but the vast majority of our staff was able to telework from the day we decided to leave our office on March 13, 2020. \nManagement quickly identified a number of business processes that required modification. Internal and external meetings are currently being conducted over teleconferencing platforms, primarily Zoom. This applies to Board meetings as well. We have not been able to see visitors in person, so counseling has been done via telephone or teleconference. To hedge against possible US Mail service interruptions, we launched a project to transition individuals who receive paper checks over to direct deposit; as a result, only just over 1% of retirees still receive a paper check. We invested in our network bandwidth to account for the additional remote workers; currently we have 6-8x the capacity we need for a typical day. \nThe area that has been the most difficult to move out of the building is our mail services area, what we call the \"Doc Center\". Despite our efforts to reduce physical mail, including investing in improvements to our secure web site to allow for electronic transfer of many documents, we still see a significant amount of mail. So we divided our Doc Center staff in half, and the two halves alternated one week in the office, and one week out of the office so that mail can be scanned and put in queues for distribution and archiving. Once the mail is sorted and scanned, it can be handled remotely from that point forward. In the event of a total building closure, we have emergency procedures and equipment in place at the staff's homes so they can keep things moving. \n \nprepare for the possibility of the pandemic escalating further and completely shutting down access to our building for a period of time, but we are confident in our ability to keep serving our members at near-peak capacity regardless of the amount of time we will be teleworking. \n \nLong-term, we have a new appreciation for how technology can be used to extend our reach in communicating with our members and other constituents, and we will be able to make much better use of it in the future. This likely also applies to our staff's work schedules as well. Recent events have clearly shown that we have the ability to maintain most of our services at a high level and our long-term working schedules will likely be reflective of that reality. \n \nMember Self Service We launched our online refund application process several years ago and have been working to build awareness of the process by educating our members and employers. Our long-term goal was to ultimately have more than 95% of our refunds processed via the online application. After setting a new high in FY20 of over 75%, in early FY21 we are over 91% and very near to achieving our goal. In addition, our Retirement Online Application process, which went live in late 2018, exceeded 52% usage for ERS retirees in late FY20, a new high water mark. \n \nPlan Changes \n \nERS is currently making two significant changes to the \n \nbenefit options available to our retirees. The first is our \n \ninitial foray into providing guaranteed lifetime income for \n \ndefined contribution plan members. \n \nWith the \n \nSupplemental Guaranteed Lifetime Income, retirees can \n \nroll over a portion or all of their 401(k) or 457 plan \n \nbalances into the ERS pension fund and convert the \n \nrollover into a lifetime annuity payment. The annuity \n \npayment can be taken in any actuarially equivalent form of \n \nbenefit that is offered for the regular pension benefit \n \nthrough the fund. \n \nWe have been in close contact with our outsourcing thirdparty administrator (TPA) for our defined contribution plans and in general, we are pleased with their ability to continue their operations and administration of our plans. \nOverall, we are very proud of the way our staff adjusted to their remote working conditions and with their ability to keep up with all of their work. Over the course of several months, we continued to make modest investments in redundant equipment and system enhancements to \n \nThe second change is the creation of an Escalating Annuity. ERS has not provided a Cost-of-Living Adjustment in about 10 years, so we decided to offer a mechanism for retirees to take a reduction in their initial benefit, but thereafter receive an increase of 2% to their monthly payment each year. Like other actuarially equivalent benefits, the amount of the initial reduction is based on the retiree's age and life expectancy at retirement. This will allow retirees to take their benefit in closer to a \"constant dollar\" annuity stream, thereby \n \n(continued) 7 \n \n Introductory Section \n \nLetter of Transmittal \n \nreducing the erosion of their purchasing power throughout their retirement. \nOther Initiatives During FY20, ERS issued an Request for Proposal for TPA outsourcing services for the Peach State Reserves plans  the state's 401(k) and 457 plans. After reviewing all proposals and selecting two finalists for in-person presentations, we are very pleased to announce that we have retained Alight Solutions to continue as our outsourcing provider. \nAt the April 2020 meeting, the Board decided to amend the ERS Funding Policy with an eye toward the future. Many of the amended provisions are unlikely to have any impact on the contributions or funding ratio of the System in the near term, but the Board regarded them as prudent safeguards for the System at a time when our funding level is higher than it is today. The amendments are: \n The minimum Actuarially Determined Employer Contribution (ADEC) will be no less than the Normal Cost of the system unless the system is at least 105% funded. \n The ADEC will not decrease by more than 2% of active member payroll from one year to the next. \n Any unfunded liability created by the granting of a post-retirement benefit adjustment will be amortized over a closed 15-year period. \n \nOther Information \nIndependent Audit The Board of Trustees requires an annual audit of the financial statements of the System by independent, certified public accountants. The accounting firm of KPMG LLP was selected by the Board. The independent auditors' report on the statement of fiduciary net position and the related statement of changes in fiduciary net position is included in the Financial Section of this report. \nAcknowledgements This report reflects the combined effort of our staff under the Board's leadership. Copies of this report, along with other valuable plan information, can be downloaded from the System's website. \nI would like to express my sincere thanks to the Boards of Trustees for their leadership and support. Many thanks are also extended to the offices of the Governor, Lieutenant Governor, members of the House and Senate Retirement Committees and their staff, members of the House and Senate, and the department officials whose support and assistance have helped ERS accomplish its mission over the years. \nRespectfully submitted, \n \nIn 2019 we implemented a new platform for the creating of our CAFR, called WDesk. The platform provides a much more automated way of loading financial data into the CAFR template and also streamlines the editing process. With the new process, we were able to produce our 2020 CAFR a full two months earlier than we have ever been able to do so in the past. \n \nJames A. Potvin, Executive Director Employees' Retirement System of Georgia \n \n8 \n \n Introductory Section \n9 \n \n Introductory Section \nPublic Pension Coordinating Council Recognition Award for Funding 2019 \nPresented to \nEmployees' Retirement System of Georgia \nIn recognition of meeting professional standards for plan funding as set forth in the Public Pension Standards. \nPresented by the Public Pension Coordinating Council, a confederation of National Association of State Retirement Administrators (NASRA) \nNational Conference on Public Employee Retirement Systems (NCPERS) National Council on Teacher Retirement (NCTR) \nAlan H. Winkle Program Administrator \n10 \n \n Introductory Section \nAdministrative Staff and Organization \n \nJames A. Potvin Executive Director \n \nAngie Surface Deputy Director \n \nCharles W. Cary, Jr. CIO - Investment Services \n \nLaura L. Lanier Controller \n \nChris Hackett \nDirector Information Technology \n \nNicole Paisant \nDirector Human Resources \n \nSusan Anderson \nChief Operating Officer \n \nCarolyn Kaplan \nDirector Financial Mgmt Quality Assurance \n \nKelly Moody \nDirector Legislative Affairs \n \nDanielle Templeton \nDirector Communications \n \nConsulting Services \nCavanaugh Macdonald Consulting, LLC - Actuary KPMG LLP - Auditor Alight Solutions - Defined Contribution \nConsultant and Administrator \nInvestment Advisors* \nAlbritton Capital Management Baillie Gifford Overseas Limited Barrow, Hanley, Mewhinney \u0026 Strauss Cooke \u0026 Bieler Fisher Investments Mondrian Investment Partners Limited Sands Capital Management WCM Investment Management \n \nMedical Advisors \nHarold E. Sours, M.D., Atlanta, GA G. Lee Cross, M.D., Atlanta, GA William H. Biggers, M.D., Atlanta, GA Pedro F. Garcia, M.D., Atlanta, GA H. Rudolph Warren, M.D., Dunwoody, GA Quinton Pirkle, M.D., Atlanta, GA Marvin Bittinger, M.D., Gainesville, GA Joseph S. Wilkes, M.D., Sandy Springs, GA Howard A. McMahan, M.D., Marietta, GA \n \n*See page 94 in the Investment Section for a summary of fees paid to investment advisors \n11 \n \n Introductory Section \nOrganizational Chart \n12 \n \n Financial Section \nCommemorating 70 Years of Service \nERSGA was recognized in the General Assembly with a resolution from both the House and the Senate. See the Appendix for the resolution text. \n \n Financial Section \n \nKPMG LLP Suite 2000 303 Peachtree Street, NE Atlanta, GA 30308-3210 \n \nIndependent Auditors' Report \n \nThe Board of Trustees Employees' Retirement System of Georgia: \n \nReport on the Financial Statements We have audited the accompanying financial statements of the fiduciary activities and the proprietary activity of the Employees' Retirement System of Georgia (the System), a component unit of the State of Georgia, as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the System's basic financial statements for the year then ended as listed in the table of contents. \nManagement's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \nAuditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. \nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but \n \nnot for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nOpinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the fiduciary activities and proprietary activity of the System as of June 30, 2020, and the respective changes in financial position and where applicable, cash flows thereof, for the year then ended in accordance with U.S. generally accepted accounting principles. \nEmphasis of Matter As discussed in Note 3(h) to the financial statements, in fiscal year 2020, the System adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. Our opinions are not modified with respect to this matter. \nOther Matters Required Supplementary Information U.S. generally accepted accounting principles require that the management's discussion and analysis on pages 16-23 and the schedules of employers' and nonemployer contributions  defined benefit plans, schedules of employers' and nonemployer net pension/OPEB liability and related ratios  defined benefit plans, schedules of changes in employers' and nonemployer net pension/ OPEB liability  defined benefit plans, schedule of investment returns, schedules of the System's \n \n(continued) 14 \n \n Financial Section \n \nproportionate share of the net OPEB liability, the schedules of the System's contributions to OPEB plans and the notes to the required supplementary information on pages 70-87, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \nSupplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the System's basic financial statements. The schedules of administrative expenses - contributions and expenses and investment expenses, and introductory, investment, actuarial and statistical sections are presented for purposes of additional analysis and are not a required part of the basic financial statements. \nThe schedules of administrative expenses - contributions and expenses and investment expenses are the responsibility of management and were derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including \n \ncomparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Survivors Benefit Fund statement of changes in assets and liabilities and the schedules of administrative expenses contributions and expenses and investment expenses are fairly stated in all material respects in relation to the basic financial statements as a whole. \nThe introductory, investment, actuarial, and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. \nOther Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated September 30, 2020 on our consideration of the System's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the System's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the System's internal control over financial reporting and compliance. \nAtlanta, Georgia September 30, 2020 \n \n15 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \nJune 30, 2020 \nThis section provides a discussion and analysis of the financial performance of the Employees' Retirement System of Georgia (the System) for the year ended June 30, 2020. The discussion and analysis of the System's financial performance is within the context of the accompanying basic financial statements, notes to the financial statements, required supplementary schedules, and additional information following this section. \nThe System is responsible for administering a cost-sharing, multiple-employer defined benefit pension plan for various employer agencies of Georgia, along with six other defined benefit pension plans, a defined benefit OPEB plan, three defined contribution plans, and a custodial fund, all of which comprise the fiduciary funds. The System is also responsible for administering an enterprise fund, which comprises the proprietary fund. \nThe defined benefit pension plans include:  Employees' Retirement System (ERS)  Public School Employees Retirement System (PSERS)  Legislative Retirement System (LRS)  Georgia Judicial Retirement System (GJRS)  Georgia Military Pension Fund (GMPF)  Superior Court Judges Retirement Fund (SCJRF)  District Attorneys Retirement Fund (DARF) \nThe defined benefit OPEB plan consists of the State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEAD-OPEB). \nThe defined contribution retirement plans include:  Georgia Defined Contribution Plan (GDCP)  State of Georgia Employees' Qualified Trust Deferred Compensation Plan (401(k) Plan)  State of Georgia Employees' Deferred Compensation Plan (457 Plan) \nThe custodial fund consists of the Survivors Benefit Fund (SBF). \nThe enterprise fund consists of the State Employees' Assurance Department Active Members Fund (SEAD-Active). \nOverview of Financial Statements \nA fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The System administers two categories of funds: fiduciary funds and a proprietary fund. Information related to the financial statements of the funds is presented in the notes to the financial statements. \nFiduciary funds are used to account for resources held for the benefit of parties outside of the System. The primary focus of the System's fiduciary funds is the accumulation of resources for and the payment of pension and OPEB benefits. The System maintains four types of fiduciary funds: (1) defined benefit pension trust funds which are used to report resources held in trust for pensions for retirees and beneficiaries covered by ERS, PSERS, LRS, GJRS, GMPF, SCJRF, and DARF (2) a defined benefit OPEB trust fund, which is used to report resources held in trust for other postemployment benefits of retirees and beneficiaries covered by SEAD-OPEB (3) defined contribution pension trust funds, which are used to accumulate contributions and earnings in the accounts of participants covered by GDCP, the 401(k) Plan, and the 457 Plan, and (4) a custodial fund, which is used to report resources held by the SBF in a custodial capacity for other plans. \nProprietary funds, which include enterprise and internal services funds, are used to account for the System's activities that are similar to private-sector businesses. The System maintains one proprietary fund, which is an enterprise fund, \n(continued) 16 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \nSEAD-Active. The primary focus of the System's enterprise fund is the accumulation of resources for, and payment of, group term life insurance benefits for active members of ERS, LRS, and GJRS covered by SEAD-Active. \nThe basic financial statements comprise statements for both fiduciary and proprietary funds. The fiduciary fund financial statements include (1) Combining Statement of Fiduciary Net Position (2) Defined Benefit Plans  Combining Statement of Fiduciary Net Position (3) Combining Statement of Changes in Fiduciary Net Position, and (4) Defined Benefit Plans  Combining Statement of Changes in Fiduciary Net Position. The proprietary fund financial statements include (1) Statement of Net Position (2) Statement of Revenues, Expenses, and Changes in Net Position and (3) Statement of Cash Flows. \nIn addition, the System presents six types of required supplementary schedules, which provide historical trend information about the plan. Four of the schedules are presented from the perspective of the System reporting as the plan and include (1) Schedules of Employers' and Nonemployer Contributions (2) Schedules of Employers' and Nonemployer Net Pension/OPEB Liability and Related Ratios (3) Schedules of Changes in Employers' and Nonemployer Net Pension/OPEB Liability and (4) Schedule of Investment Returns. Two of the schedules are presented from the perspective of the System reporting as the employer for its employees who participate in the SEAD-OPEB and the Georgia State Employees Postemployment Benefit Fund (State OPEB Fund) and include the (5) Schedules of the System's Proportionate Share of the Net OPEB Liability and (6) Schedules of the System's Contributions to OPEB Plans. The System also includes in this report additional information to supplement the financial statements. \nThe System prepares its financial statements on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board (GASB). These statements provide information about the System's overall financial status. \nFinancial Highlights \nThe highlights of the fiduciary funds of the System are as follows: \n The net position of the fiduciary funds increased by $85.4 million, or 0.5%, from $18.4 billion (as restated) at June 30, 2019 to $18.5 billion at June 30, 2020. The increase in net position from 2019 to 2020 was primarily due to positive fixed income and equity market returns. \n For the year ended June 30, 2020, the total additions to net position were $1.9 billion, compared to $2.1 billion for the year ended June 30, 2019. For the year ended June 30, 2020, the additions consisted of employer, nonemployer contributing entities (nonemployer), and member contributions totaling $945.0 million, insurance premiums of $3.1 million, net investment income of $931.9 million, and participant fees of $451.0 thousand. \n Net investment income of $931.9 million in 2020 (comprising interest and dividend income, the change in fair value of investments, and other, reduced by investment expenses) represents a decrease of $234.7 million, or 20.1%, compared to the net investment income of $1.2 billion for the year ended June 30, 2019. The change in net investment income was primarily due to more moderate equity gains in 2020 compared to 2019. \n The total deductions from net position increased by $61.8 million to $1.8 billion for the year ended June 30, 2020 compared to $1.7 billion for the year ended June 30, 2019. For the year ended June 30, 2020, the deductions primarily consisted of benefit payments. \nThe highlights of the proprietary fund of the System are as follows: \n The net position of the proprietary fund increased by $13.5 million to $319.3 million at June 30, 2020 compared to $305.9 million at June 30, 2019. The increase in net position from 2019 to 2020 was primarily due to positive fixed income and equity market returns. \n(continued) 17 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \n For the year ended June 30, 2020, total operating loss was $3.1 million compared to $3.0 million for the year ended June 30, 2019. The increase relates primarily to an increase in the number of active members who received death benefits during the year. \n Net investment income allocated from the pooled investment fund of $16.6 million in 2020 represents a decrease of $3.1 million, or 15.5%, compared to net investment income allocated from the pooled investment fund of $19.6 million for the year ended June 30, 2019. The change in investment income allocated from the pooled investment fund was primarily due to more moderate equity gains in 2020 compared to 2019. \nDescription of the Financial Statements \nFiduciary Funds \nThe Combining Statement of Fiduciary Net Position is the statement of financial position presenting information that includes the fiduciary funds' assets and liabilities, with the balance representing the Net Position Restricted for Pensions and OPEB and SBF. The investments of the funds in this statement are presented at fair value. This statement is presented on page 24. \nThe Combining Statement of Changes in Fiduciary Net Position reports how the fiduciary funds' net position changed during the fiscal year. The additions include contributions to the retirement plans from employers, nonemployer, and members; group term life insurance premiums; participant fees; and net investment income, which includes interest and dividends and the net increase in the fair value of investments, net of investment expenses. The deductions include benefit payments, life insurance death benefit payments, refunds of member contributions and interest, and administrative expenses. This statement is presented on page 26. \nThe Defined Benefit Plans' Combining Statement of Fiduciary Net Position and the Combining Statement of Changes in Fiduciary Net Position present the financial position and changes in financial position for each of the defined benefit plans administered by the System. These statements are on pages 25 and 27, respectively. \nProprietary Funds \nThe Statement of Net Position is the statement of financial position presenting information that includes the assets and liabilities, with the balance representing the net position. This statement is presented on page 28. \nThe Statement of Revenues, Expenses, and Changes in Net Position distinguishes operating revenues and expenses from nonoperating items. Principal operating revenues result from insurance premiums from members, while operating expenses result from death benefit payments and administrative expenses. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. This statement is presented on page 29. \nThe Statement of Cash Flows provides information about cash receipts and cash payments during the year. When used in conjunction with related disclosures and information in the other financial statements, the statement provides relevant information about the plan's ability to generate future net cash flows, the plan's ability to meet its obligations as they come due, and presents the reasons for differences between operating income and associated cash receipts and payments. This statement is presented on page 30. \nNotes to Financial Statements are presented to provide the information necessary for a full understanding of the financial statements. The notes to the financial statements begin on page 31. \n(continued) 18 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \nRequired Supplementary Information begins on page 70. The required schedules are discussed as follows:  The Schedule of Employers' and Nonemployer Contributions presents historical trend information for the last 10 consecutive fiscal years about the required contributions and the percent of required contributions actually contributed.  The Schedule of Employers' and Nonemployer Net Pension/OPEB Liability and Related Ratios presents the components of the net pension/OPEB liability as of the fiscal year end and the fiduciary net position as a percentage of the total pension/OPEB liability as of that date. This trend information will be accumulated to display a 10-year presentation.  The Schedule of Changes in Employers' and Nonemployer Net Pension/OPEB Liability presents total net pension/OPEB liability and is measured as total pension/OPEB liability less the amount of the fiduciary net position. This trend information will be accumulated to display a 10-year presentation.  The Schedule of Investment Returns presents historical trend information about the annual money-weighted rate of return on plan investments, net of plan investment expense. This trend information will be accumulated to display a 10-year presentation.  The Schedule of the System's Proportionate Share of the Net OPEB Liability presents historical trend information about the System's proportionate share of the net OPEB liability (asset) for its employees who participate in the SEAD-OPEB plan and the State OPEB Fund. This trend information will be accumulated to display a 10-year presentation.  The Schedule of the System's Contributions to OPEB Plans presents historical trend information about the System's contributions for its employees who participate in the SEAD-OPEB plan and the State OPEB Fund. This trend information will be accumulated to display a 10-year presentation. \nThree of the required schedules above, the Schedules of Employers' and Nonemployer Contributions, the Schedules of Employers' and Nonemployer Net Pension/OPEB Liability and Related Ratios, and the Schedules of Changes in Employers' and Nonemployer Net Pension/OPEB Liability are applicable to five of the defined benefit pension plans (ERS, PSERS, LRS, GJRS, and GMPF) and the defined benefit OPEB plan (SEAD-OPEB). \nNotes to Required Supplementary Information are presented to provide the information necessary for a full understanding of the supplementary schedules. The notes to required supplementary information begin on page 83. \nAdditional information is presented, beginning on page 88, and includes two schedules. The first schedule is the Schedule of Administrative Expenses  Contributions and Expenses and presents the expenses incurred in the administration of the plans and funds, and the contributions from each plan and fund to provide for these expenses. The second schedule is the Schedule of Investment Expenses and presents the expenses incurred in the management of the System's investments. \n(continued) 19 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \n \nFinancial Analysis of the System \n \nA summary of the System's net position of the fiduciary funds at June 30, 2020 is as follows (dollars in thousands): \n \nAssets: Cash, cash equivalents, and receivables Investments Capital assets, net Net OPEB asset Total assets \nDeferred outflows of resources \n \nNet position \n \n2020 \n \n2019 (as restated)1 \n \nAmount change \n \nPercentage change \n \n$ \n \n360,965 \n \n18,495,992 \n \n6,568 \n \n569 \n \n18,864,094 \n \n681 \n \n533,422 18,226,094 \n6,552 541 \n18,766,609 1,156 \n \n(172,457) 269,898 \n16 28 97,485 (475) \n \n(32.3)% 1.5 0.2 5.2 0.5 \n(41.1) \n \nLiabilities: \n \nDue to brokers, accounts payable, and insurance premiums payable \n \nDue to other funds/plans and participating systems \n \nNet OPEB liability \n \nTotal liabilities \n \nDeferred inflows of resources \n \nNet position \n \n$ \n \n35,902 319,146 \n2,350 357,398 \n3,194 18,504,183 \n \n36,003 305,795 \n4,749 346,547 \n2,389 18,418,829 \n \n(101) 13,351 (2,399) 10,851 \n805 85,354 \n \n1Refer to Significant Accounting Policies and System Asset Matters - Changes in Accounting Principal section for details. \n \n(0.3) 4.4 (50.5) 3.1 33.7 0.5 % \n \nA summary of the System's net position of the proprietary fund at June 30, 2020 is as follows (dollars in thousands): \n \nAssets: Cash, cash equivalents, and receivables Investments Total assets \nLiabilities: Accounts payable and other Net position \n \nNet position \n \n2020 \n \n2019 \n \nAmount change \n \nPercentage change \n \n$ \n \n241 \n \n319,146 \n \n319,387 \n \n124 305,795 305,919 \n \n117 13,351 13,468 \n \n94.4 % 4.4 4.4 \n \n47 \n \n$ \n \n319,340 \n \n42 305,877 \n \n5 13,463 \n \n11.9 4.4 % \n \n(continued) 20 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \n \nThe following table presents the investment allocation at June 30, 2020, and 2019: \n \nAsset allocation at June 30 (in percentages): Equities: \nDomestic International Private equity Domestic obligations: U.S. treasuries Corporate and other bonds International obligations: Corporates Commingled funds \nAsset allocation at June 30 (in thousands): Equities: \nDomestic International Private equity Domestic obligations: U.S. treasuries Corporate and other bonds International obligations: Corporates Mutual funds Commingled funds \n \n2020 \n46.7 % 14.3 \n2.0 \n19.4 6.3 \n1.1 10.2 \n \n2019 \n45.8 % 15.3 \n1.8 \n20.8 6.1 \n0.5 9.7 \n \n$ 8,641,627 $ 8,350,863 \n \n2,636,114 \n \n2,786,569 \n \n365,458 \n \n335,306 \n \n3,584,895 1,162,433 \n \n3,784,262 1,104,643 \n \n212,119 7,498 \n1,885,848 \n \n95,134 8,114 \n1,761,203 \n \n$ 18,495,992 $ 18,226,094 \n \nThe total investment portfolio increased by $269.9 million, or 1.5%, from 2019, which is due to positive fixed income and equity market returns. \nInvestment performance is calculated using a time-weighted rate of return using the Daily Valuation Method. The timeweighted rate of return for the fiscal year ended June 30, 2020, was 5.5% with a 3.2% return for equities, a 6.4% return for private equity, and a 9.9% return for fixed income. The five-year annualized rate of return at June 30, 2020, was 7.0% with an 8.2% return for equities, an 11.4% return for private equity, and a 4.1% return for fixed income. \nA money-weighted return is weighted by the amount of dollars in the fund at the beginning and end of the performance period. A money-weighted return is highly influenced by the timing of cash flows into and out of the fund and is a better measure of an entity or person who controls the cash flows into or out of the fund. The nondiscretionary cash flows for the plan, primarily contributions and benefit payments, have a considerable impact on the money-weighted returns of the portfolio. The money-weighted rate of return for the fiscal year ended June 30, 2020, was (3.6)%, compared to (1.8)% for the fiscal year ended June 30, 2019. \n(continued) 21 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \n \nA summary of the changes in the System's net position of the fiduciary funds for the year ended June 30, 2020 is as follows (dollars in thousands): \n \nAdditions: Employer contributions Nonemployer contributions Member contributions Participant fees Insurance premiums Net investment income Other Total additions \n \nChanges in net position \n \n2020 \n \n2019 (as restated)1 \n \nAmount change \n \nPercentage change \n \n$ \n \n692,253 \n \n44,687 \n \n208,018 \n \n451 \n \n3,088 \n \n931,916 \n \n14 \n \n1,880,427 \n \n692,481 42,620 \n198,928 597 \n3,328 1,166,626 \n13 2,104,593 \n \n(228) 2,067 9,090 (146) (240) (234,710) \n1 (224,166) \n \n-- % 4.9 4.6 (24.5) (7.2) (20.1) 7.7 (10.7) \n \nDeductions: Benefit payments Refunds Death benefits Administrative expenses Total deductions Net increase in net position \n \n1,715,693 \n \n17,960 \n \n44,754 \n \n16,666 \n \n1,795,073 \n \n$ \n \n85,354 \n \n1,660,330 19,854 37,421 15,620 \n1,733,225 371,368 \n \n55,363 (1,894) 7,333 1,046 61,848 (286,014) \n \n3.3 (9.5) 19.6 6.7 3.6 (77.0)% \n \n1 Refer to Significant Accounting Policies and System Asset Matters - Changes in Accounting Principal section for details. \n \nAdditions  The System accumulates resources needed to fund benefit payments through contributions and returns on invested funds. In fiscal year 2020, total contributions increased $10.9 million, or 1.2%, primarily due to modest overall salary increases. Net investment income decreased by $234.7 million, or 20.1%, due primarily to equity returns moderating somewhat in fiscal year 2020 compared to 2019. \nDeductions  For fiscal year 2020, total deductions increased $61.8 million, or 3.6%, primarily because of an increase of $55.4 million, or 3.3%, in benefit payments. Pension benefit payments increased due to an increase in the number of retirees and beneficiaries receiving benefits in 2020 in addition to cost of living adjustments of 1.5% for PSERS members and two one-time benefit payments of 3% for ERS, JRS, and LRS members. Death benefits increased by $7.3 million, or 19.6%, which was primarily due to an increase in the number of death claims processed during 2020. Refunds decreased by $1.9 million, or 9.5%, which was primarily due to a decrease in the number of refunds processed during 2020. Administrative expenses increased by $1.0 million over the prior year, or 6.7%, primarily due to increased contractual services costs and health insurance costs related to a payment holiday given in the prior year. \n \n(continued) 22 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \n \nA summary of the changes in the System's net position of the proprietary fund for the year ended June 30, 2020 is as follows (dollars in thousands): \n \nOperating revenue: Insurance premiums Total operating revenue \n \nChanges in net position \n \n2020 \n \n2019 \n \nAmount change \n \nPercentage change \n \n$ \n \n547 \n \n531 \n \n547 \n \n531 \n \n14 \n \n2.7 % \n \n14 \n \n2.7 \n \nOperating expenses: Death benefits Administrative expenses Total operating expenses Total operating loss \n \n3,588 80 \n3,668 (3,121) \n \n3,424 80 \n3,504 (2,973) \n \n164 1 \n164 (150) \n \n4.8 1.0 4.7 (5.0) \n \nNonoperating revenue: \n \nAllocation of investment income from pooled investment fund, net \n \nChange in net position \n \n$ \n \n16,584 13,463 \n \n19,643 16,670 \n \n(3,059) (3,209) \n \n(15.6) (19.2) % \n \nOperating and nonoperating revenue  The proprietary fund accumulates resources needed to fund death benefit payments through premiums earned and returns on invested funds. In fiscal year 2020, total premiums earned increased $14 thousand, or 2.7%, primarily due to modest overall salary increases. Effective January 1, 2009, the plan was closed to new members. Allocation of investment income from the pooled investment fund, net of related expenses, decreased by $3.1 million, or 15.6%, primarily due to equity returns moderating somewhat in fiscal year 2020 compared to 2019. \nOperating expenses  For fiscal year 2020, death benefits increased by $164 thousand, or 4.8%, which was primarily due to an increase in the number of death claims processed during 2020. Administrative expenses increased by $783.30 over the prior year, or 1.0%, primarily due to increased contractual services costs. \nRequests for Information \nThis financial report is designed to provide a general overview of the System's finances for all those with interest in the System's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to Employees' Retirement System of Georgia, Two Northside 75, Suite 300, Atlanta, GA 30318. \n \n23 \n \n Financial Section \nCombining Statement of Fiduciary Net Position \nJune 30, 2020 (In thousands) \n \nAssets \nCash and cash equivalents \nReceivables: Contributions Interest and dividends Due from brokers for securities sold Other Unremitted insurance premiums \nTotal receivables \nInvestments - at fair value: Domestic obligations: U.S. treasuries Corporate and other bonds International obligations: Corporates Equities: Domestic International Private equity Mutual funds Commingled funds Equity in pooled investment fund \nTotal investments \nCapital assets, net \nNet OPEB asset \nTotal assets Deferred outflows of resources \nLiabilities Accounts payable and other Due to brokers for securities purchased Insurance premiums payable Due to participating systems Net OPEB liability \nTotal liabilities \nDeferred inflows of resources Net position restricted for: \nPensions and OPEB Survivors Benefit Fund \nSee accompanying notes to financial statements. \n \nDefined benefit plans \n \n$ \n \n33,024 \n \nPooled Investment \nFund \n202,930 \n \nDefined contribution plans \n \nGeorgia Defined Contribution Plan \n \n401(k) Plan \n \n22,768 \n \n16,213 \n \n457 Plan \n1,297 \n \n30,309 -- -- \n2,640 449 \n33,398 \n \n-- 41,704 \n4,030 -- -- \n45,734 \n \n740 \n \n3,641 \n \n405 \n \n425 \n \n2 \n \n5 \n \n-- \n \n-- \n \n-- \n \n-- \n \n487 \n \n259 \n \n-- \n \n-- \n \n-- \n \n1,165 \n \n4,130 \n \n669 \n \nCustodial fund \nSurvivors Benefit Fund \n86 \n \nEliminations -- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n(449) \n \n-- \n \n(449) \n \n-- -- \n-- \n-- -- -- -- -- 16,220,640 16,220,640 6,568 569 16,294,199 681 \n \n22,093 -- \n518 -- \n2,350 \n24,961 \n3,194 \n \n$ \n \n16,266,725 \n \n$ \n \n-- \n \n3,492,304 1,140,493 \n212,119 \n8,622,857 2,634,196 \n365,458 -- -- -- \n16,467,427 -- -- \n16,716,091 -- \n2,106 6,840 \n-- 16,707,145 \n-- 16,716,091 \n-- \n-- -- \n \n92,591 21,940 \n-- \n-- -- -- -- -- -- 114,531 -- -- 138,464 -- \n508 -- -- -- -- \n508 -- \n137,956 -- \n \n-- -- \n-- \n11,466 582 -- \n3,506 1,254,153 \n-- 1,269,707 \n-- -- 1,290,050 -- \n2,959 -- -- -- -- \n2,959 -- \n1,287,091 -- \n \n-- -- \n-- \n7,304 1,336 \n-- 3,992 631,695 \n-- 644,327 \n-- -- 646,293 -- \n1,327 -- -- -- -- \n1,327 -- \n644,966 -- \n \n-- -- \n-- \n-- -- -- -- -- 167,359 167,359 -- -- 167,445 -- \n-- -- -- -- -- -- -- \n-- 167,445 \n \n-- -- \n-- \n-- -- -- -- -- (16,387,999) (16,387,999) -- -- (16,388,448) -- \n-- -- (449) (16,387,999) -- (16,388,448) -- \n-- -- \n \nTotal \n276,318 \n35,095 42,136 \n4,030 3,386 \n-- 84,647 \n3,584,895 1,162,433 \n212,119 \n8,641,627 2,636,114 \n365,458 7,498 \n1,885,848 -- \n18,495,992 6,568 569 \n18,864,094 681 \n28,993 6,840 69 \n319,146 2,350 \n357,398 3,194 \n18,336,738 167,445 \n \n24 \n \n Financial Section \n \nDefined Benefit Plans - Combining Statement of Fiduciary Net Position \nJune 30, 2020 (In thousands) \n \nAssets \nCash and cash equivalents \nReceivables: Contributions Interest and dividends Due from brokers for securities sold Other Unremitted insurance premiums \nTotal receivables \nInvestments - at fair value: Domestic obligations: U.S. treasuries Corporate and other bonds International obligations: Corporates Equities: Domestic International Private equity Mutual funds Commingled funds Equity in pooled investment fund \nTotal investments \nCapital assets, net \nNet OPEB asset \nTotal assets \nDeferred outflows of resources \nLiabilities \nAccounts payable and other Due to brokers for securities purchased Insurance premiums payable Due to participating systems Net OPEB liability \nTotal liabilities \nDeferred inflows of resources \nNet position restricted for pensions and OPEB \n \nDefined benefit pension plans \n \nEmployees' Retirement \nSystem \n \n$ \n \n31,734 \n \nPublic School Employees Retirement System \n266 \n \nLegislative Retirement \nSystem \n80 \n \nGeorgia Judicial Retirement System \n601 \n \nGeorgia Military Pension \nFund \n48 \n \n29,843 \n \n1 \n \n-- \n \n465 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n2,375 \n \n265 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n32,218 \n \n266 \n \n-- \n \n465 \n \n-- \n \n-- -- \n-- \n-- -- -- -- -- 13,456,293 \n13,456,293 6,568 \n569 \n13,527,382 681 \n \n19,726 -- \n507 -- \n2,350 \n22,583 \n3,194 \n \n$ \n \n13,502,286 \n \n-- -- \n-- \n-- -- -- -- -- 958,718 958,718 -- -- 959,250 -- \n1,002 -- -- -- -- \n1,002 -- \n958,248 \n \n-- -- \n-- \n-- -- -- -- -- 34,599 34,599 -- -- 34,679 -- \n110 -- 1 -- -- \n111 -- \n34,568 \n \n-- -- \n-- \n-- -- -- -- -- 485,633 485,633 -- -- 486,699 -- \n759 -- 10 -- -- \n769 -- \n485,930 \n \n-- -- \n-- \n-- -- -- -- -- 28,995 28,995 -- -- 29,043 -- \n76 -- -- -- -- 76 -- \n28,967 \n \nSuperior Court Judges \nRetirement Fund 10 \n-- -- -- -- -- \n-- \n-- -- \n-- \n-- -- -- -- -- -- \n-- -- \n-- \n10 -- \n4 -- -- -- -- 4 \n-- \n6 \n \nDistrict Attorneys Retirement \nFund 2 \n-- -- -- -- -- -- \n-- -- \n-- \n-- -- -- -- -- -- -- -- -- 2 -- \n-- -- -- -- -- -- -- \n2 \n \nDefined benefit OPEB plan \nState Employees' Assurance Department \nOPEB 283 \n-- -- -- -- 449 \n449 \n-- -- \n-- \n-- -- -- -- -- 1,256,402 \n1,256,402 -- \n-- \n1,257,134 -- \n416 -- -- -- -- \n416 \n-- \n1,256,718 \n \nDefined benefit plans \ntotal 33,024 \n30,309 -- -- \n2,640 449 \n33,398 \n-- -- \n-- \n-- -- -- -- -- 16,220,640 16,220,640 6,568 569 16,294,199 681 \n22,093 -- \n518 -- \n2,350 24,961 \n3,194 \n16,266,725 \n \nSee accompanying notes to financial statements. \n \n25 \n \n Financial Section \nCombining Statement of Changes in Fiduciary Net Position \nYear ended June 30, 2020 (In thousands) \n \nDefined contribution plans \n \nCustodial fund \n \nAdditions: Contributions: Employer Nonemployer Member Participant fees Insurance premiums Administrative expense allotment \nInvestment income: Net increase in fair value of investments Interest and dividends Other Less investment expenses Allocation of investment income \nNet investment income \nTotal additions \nDeductions: Benefit payments Refunds of member contributions and interest Death benefits Administrative expenses \nTotal deductions \nChange in net position \nNet position restricted for pension and OPEB and SBF: \nBeginning of year (as restated) \nEnd of year \n \nDefined benefit plans \n \nPooled Investment \nFund \n \nGeorgia Defined Contribution \nPlan \n \n401(k) Plan \n \n457 Plan \n \nSurvivors Benefit Fund \n \n$ \n \n641,115 \n \n44,687 \n \n43,505 \n \n-- \n \n3,088 \n \n14 \n \n-- 10 -- (10,186) 857,900 \n847,724 \n1,580,133 \n \n1,583,264 7,450 \n44,754 11,192 \n1,646,660 \n(66,527) \n \n16,333,252 $ 16,266,725 \n \n-- -- -- -- -- -- \n525,960 364,852 \n-- (7,560) (883,252) \n-- -- \n-- -- -- -- -- -- \n-- -- \n \n-- \n \n51,138 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n14,658 \n \n129,639 \n \n20,216 \n \n-- \n \n-- \n \n426 \n \n25 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n6,323 2,823 \n-- (68) -- \n9,078 \n23,736 \n \n42,324 170 713 \n(2,357) -- \n40,850 \n222,053 \n \n25,677 95 \n703 (912) \n-- \n25,563 \n45,804 \n \n-- -- -- -- 8,701 \n8,701 \n8,701 \n \n7 10,510 \n-- 913 \n11,430 \n12,306 \n \n92,355 -- -- \n3,816 \n96,171 \n125,882 \n \n40,067 -- -- \n745 \n40,812 \n4,992 \n \n-- -- -- -- \n-- \n8,701 \n \n125,650 137,956 \n \n1,161,209 1,287,091 \n \n639,974 644,966 \n \n158,744 167,445 \n \nSee accompanying notes to financial statements. \n \nTotal \n692,253 44,687 \n208,018 451 \n3,088 14 \n600,284 367,950 \n1,416 (21,083) (16,651) 931,916 1,880,427 \n1,715,693 17,960 44,754 16,666 \n1,795,073 85,354 \n18,418,829 18,504,183 \n \n26 \n \n Financial Section \n \nDefined Benefit Plans - Combining Statement of Changes in Fiduciary Net Position \n \nYear ended June 30, 2020 (In thousands) \nAdditions: Contributions: Employer Nonemployer Member Participant fees Insurance premiums Administrative expense allotment \nInvestment income: Net increase in fair value of investments Interest and dividends Other Less investment expenses Allocation of investment income \nNet investment income \nTotal additions \n \nEmployees' Retirement \nSystem \n \nPublic School Employees Retirement System \n \nDefined benefit pension plans \n \nLegislative Retirement \nSystem \n \nGeorgia Judicial Retirement System \n \nGeorgia Military Pension \nFund \n \nSuperior Court Judges \nRetirement Fund \n \nDistrict Attorneys Retirement \nFund \n \nDefined benefit OPEB \nplan \nState Employees' Assurance Department \nOPEB \n \nDefined benefit plans \ntotal \n \n$ \n \n634,108 \n \n-- \n \n-- \n \n4,022 \n \n2,611 \n \n340 \n \n9,749 \n \n32,496 \n \n-- \n \n2,442 \n \n-- \n \n-- \n \n35,837 \n \n2,338 \n \n325 \n \n5,005 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n10 \n \n-- \n \n-- \n \n-- \n \n-- \n \n2 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n10 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n(8,961) \n \n(404) \n \n(16) \n \n(195) \n \n(6) \n \n-- \n \n712,791 \n \n50,317 \n \n1,840 \n \n25,609 \n \n1,491 \n \n-- \n \n703,840 \n \n49,913 \n \n1,824 \n \n25,414 \n \n1,485 \n \n-- \n \n1,383,544 \n \n84,747 \n \n2,149 \n \n36,883 \n \n4,096 \n \n342 \n \n34 \n \n-- \n \n641,115 \n \n-- \n \n-- \n \n44,687 \n \n-- \n \n-- \n \n43,505 \n \n-- \n \n-- \n \n-- \n \n-- \n \n3,088 \n \n3,088 \n \n2 \n \n-- \n \n14 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n10 \n \n-- \n \n-- \n \n-- \n \n-- \n \n(604) \n \n(10,186) \n \n-- \n \n65,852 \n \n857,900 \n \n-- \n \n65,248 \n \n847,724 \n \n36 \n \n68,336 \n \n1,580,133 \n \nDeductions: Benefit payments Refunds of member contributions and interest Death benefits Administrative expenses \nTotal deductions \nChange in net position \nNet position restricted for pensions and OPEB: \n \n1,484,445 \n \n66,090 \n \n1,795 \n \n29,263 \n \n1,297 \n \n340 \n \n6,644 \n \n572 \n \n21 \n \n213 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n7,641 \n \n1,424 \n \n305 \n \n849 \n \n249 \n \n2 \n \n1,498,730 \n \n68,086 \n \n2,121 \n \n30,325 \n \n1,546 \n \n342 \n \n(115,186) \n \n16,661 \n \n28 \n \n6,558 \n \n2,550 \n \n-- \n \nBeginning of year End of year \n \n13,617,472 \n \n941,587 \n \n34,540 \n \n479,372 \n \n26,417 \n \n6 \n \n$ 13,502,286 \n \n958,248 \n \n34,568 \n \n485,930 \n \n28,967 \n \n6 \n \n34 \n \n-- \n \n1,583,264 \n \n-- \n \n-- \n \n7,450 \n \n-- \n \n44,754 \n \n44,754 \n \n2 \n \n720 \n \n11,192 \n \n36 \n \n45,474 \n \n1,646,660 \n \n-- \n \n22,862 \n \n(66,527) \n \n2 \n \n1,233,856 \n \n16,333,252 \n \n2 \n \n1,256,718 \n \n16,266,725 \n \nSee accompanying notes to financial statements. \n \n27 \n \n Financial Section \nStatement of Net Position State Employees' Assurance Department Active Members Fund \nJune 30, 2020 (In thousands) \n \nAssets: \n \nCash and cash equivalents \n \n$ \n \nReceivables: Unremitted insurance premiums \n \nInvestments - at fair value: Equity share of pooled investment fund \n \nTotal assets \n \nLiabilities: \n \nAccounts payable and other \n \nTotal liabilities \n \nTotal net position \n \n$ \n \n172 \n69 \n319,146 319,387 \n47 47 319,340 \n \nSee accompanying notes to financial statements. \n \n28 \n \n Financial Section \nStatement of Revenues, Expenses, and Changes in Net Position State Employees' Assurance Department Active Members Fund \nYear ended June 30, 2020 (In thousands) \n \nOperating revenue: \n \nInsurance premiums \n \n$ \n \nTotal operating revenue \n \nOperating expenses: Death benefits Administrative expenses Total operating expenses Total operating loss \n \nNonoperating revenues (expenses): Allocation of investment income from pooled investment fund Investment expenses Total nonoperating revenues Change in net position \n \nTotal net position: \n \nBeginning of year \n \nEnd of year \n \n$ \n \n547 547 \n3,588 80 \n3,668 (3,121) \n16,651 (67) \n16,584 13,463 \n305,877 319,340 \n \nSee accompanying notes to financial statements. \n \n29 \n \n Financial Section \nStatement of Cash Flows State Employees' Assurance Department Active Members Fund \nYear ended June 30, 2020 (In thousands) \n \nCash flows from operating activities: \n \nInsurance premiums received \n \n$ \n \nDeath benefits paid \n \nAdministrative fees paid \n \nNet cash used in operating activities \n \nCash flows from investing activities: Withdrawals from pooled investment fund Investment expenses paid Net cash provided by investing activities Net increase in cash and cash equivalents \n \nCash and cash equivalents, beginning of year Cash and cash equivalents, end of year \n \nReconciliation of operating loss to net cash used in operating activities: Operating loss Changes in assets and liabilities: \n \nUnremitted Insurance Premiums \n \nAccounts payable and other \n \nNet cash used in operating activities \n \n$ \n \nSee accompanying notes to financial statements. \n \n550 (3,588) \n(75) (3,113) \n3,300 (67) \n3,233 120 52 172 \n(3,121) \n3 5 (3,113) \n \n30 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \n \n(1) General \nThe accompanying basic financial statements of the Employees' Retirement System of Georgia, including all plans and funds administered by the Employees' Retirement System of Georgia (collectively, the System), comprises the Employees' Retirement System of Georgia (ERS), Public School Employees Retirement System (PSERS), Legislative Retirement System (LRS), Georgia Judicial Retirement System (GJRS), Georgia Military Pension Fund (GMPF), Superior Court Judges Retirement Fund (SCJRF), District Attorneys Retirement Fund (DARF), State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEAD-OPEB), Georgia Defined Contribution Plan (GDCP), State of Georgia Employees' Qualified Trust Deferred Compensation Plan (401(k) Plan), State of Georgia Employees' Deferred Compensation Plan (457 Plan), Survivors Benefit Fund (SBF), and State Employees' Assurance Department Active Members Fund (SEAD-Active). All significant transactions among the various systems, departments, and funds have been eliminated. The Boards of Trustees, comprising active and retired members, ex officio state employees, and appointees by the Governor, are ultimately responsible for the administration of the System. \n(2) Authorizing Legislation and Plan Descriptions \nEach plan and fund, including benefit and contribution provisions, was established and can be amended by state law. The following summarizes authorizing legislation and the plan description of each retirement fund: \n(a) ERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees (ERS Board) and has the powers and privileges of a corporation. There were 417 employers and 1 nonemployer contributing entity participating in the plan during 2020. Total participation in ERS at June 30, 2020 was 173,803 as detailed in the following chart: \nERS Membership as of June 30, 2020 \n \nInactive members and beneficiaries currently receiving benefits Inactive members entitled to benefits but not yet receiving benefits Active plan members \n \n57,059 53,249 63,495 \n \nBenefits The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the Old Plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are New Plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \nUnder the Old Plan, the New Plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service, regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \n(continued) 31 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \nContributions and Vesting Member contributions under the Old Plan are 4% of annual compensation, up to $4,200, plus 6% of annual compensation in excess of $4,200. Under the Old Plan, the state pays member contributions in excess of 1.25% of annual compensation. These state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the New Plan and GSEPS are 1.25% of annual compensation. The state is required to contribute at a specified percentage of active member payrolls, determined annually by actuarial valuation. The state contributions are not at any time refundable to the member or his/her beneficiary. \nPursuant to The Official Code of Georgia Annotated (O.C.G.A.) 47-2-292, the employer contributions for local tax commissioners and their employees who took office or were employed prior to July 1, 2012 are funded by the State of Georgia on behalf of the local county employer. Pursuant to O.C.G.A. 47-2-290, the employer contribution for certain State Court employees is funded by the state on behalf of the local county employer. \nEmployer and nonemployer contributions as a percentage of covered payroll required for fiscal year 2020 were based on the June 30, 2017 actuarial valuation for the Old Plan, New Plan, and GSEPS, as follows: \n \nEmployer and nonemployer: Normal Employer paid for member Accrued liability \nTotal \n \nOld Plan New Plan GSEPS \n \n1.31 % 4.75 % 18.60 % \n24.66 % \n \n6.06 % -- % \n18.60 % \n24.66 % \n \n3.04 % -- % \n18.60 % \n21.64 % \n \nMembers become vested after 10 years of membership service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \n(b) PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board, plus two additional trustees, administers PSERS (PSERS Board). There were 186 employers and 1 nonemployer contributing entity participating in the plan during 2020. Total participation in PSERS at June 30, 2020 was 104,244 as detailed in the chart on the following page: \n \n(continued) 32 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \nPSERS Membership as of June 30, 2020 \n \nInactive members and beneficiaries currently receiving benefits Inactive members entitled to benefits but not yet receiving benefits Active plan members \n \n34,736 \n \n19,232 \n \n50,276 \n \nBenefits A member may retire and elect to receive normal monthly retirement benefits after completion of 10 years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of 10 years of service. \nUpon retirement, the member will receive a monthly benefit of $15.50, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. \nContributions and Vesting Individuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board. \nEmployer contributions required for the year ended June 30, 2020 were $825.03 per active member and were based on the June 30, 2017 actuarial valuation. \nMembers become vested after 10 years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \n(c) LRS is a single-employer defined benefit pension plan established by the Georgia General Assembly from 19671971, and later reestablished in 1979, for the purpose of providing retirement allowances for all members of the Georgia General Assembly. LRS is administered by the ERS Board. There was one employer in the plan for 2020. Total participation in LRS at June 30, 2020 was 658 as detailed in the following chart : \nLRS Membership as of June 30, 2020 \n \nInactive members and beneficiaries currently receiving benefits Inactive members entitled to benefits but not yet receiving benefits Active plan members \n \n219 269 \n170 \n \n(continued) 33 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \nBenefits A member's normal retirement is after eight years of creditable service and attainment of age 65, or eight years of membership service (four legislative terms) and attainment of age 62. A member may retire early and elect to receive a monthly retirement benefit after completion of eight years of membership service and attainment of age 60; however, the retirement benefit is reduced by 5% for each year the member is under age 62. \nUpon retirement, the member will receive a monthly service retirement allowance of $36, multiplied by the number of years of creditable service. Death benefits are also available through the plan. \nContributions and Vesting Member contributions are 8.5% of annual salary. The state pays member contributions in excess of 4.75% of annual compensation. Employer contributions are actuarially determined and approved and certified by the ERS Board. \nThere were no employer contributions required for the year ended June 30, 2020 based on the June 30, 2017 actuarial valuation. \nMembers become vested after eight years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \n(d) GJRS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1998 for the purpose of providing retirement allowances for judges and solicitors general of the state courts and juvenile court judges in Georgia, and their survivors and other beneficiaries, superior court judges of the State of Georgia, and district attorneys of the State of Georgia. \nThe GJRS was also created to serve the members and beneficiaries of the Trial Judges and Solicitors Retirement Fund, the Superior Court Judges Retirement System, and the District Attorneys Retirement System (collectively, the Predecessor Retirement Systems). As of June 30, 1998, any person who was an active, inactive, or retired member or beneficiary of the Predecessor Retirement Systems was transferred to GJRS in the same status effective July 1, 1998. All assets of the Predecessor Retirement Systems were transferred to GJRS as of July 1, 1998. The ERS Board and three additional trustees administer GJRS (GJRS Board). There were 92 employers and 1 nonemployer contributing entity participating in the plan during 2020. Total participation in GJRS at June 30, 2020 was 1,000 as detailed in the following chart: \nGJRS Membership as of June 30, 2020 \n \nInactive members and beneficiaries currently receiving benefits Inactive members entitled to benefits but not yet receiving benefits Active plan members \n \n414 522 \n64 \n \n(continued) 34 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \n \nBenefits The normal retirement for GJRS is age 60, with 16 years of creditable service; however, a member may retire at age 60 with a minimum of 10 years of creditable service. \n \nAnnual retirement benefits paid to members are computed as 66% of state-paid salary at retirement for district attorneys and superior court judges and 66% of the average over 24 consecutive months for trial judges and solicitors, plus 1% for each year of credited service over 16 years, not to exceed 24 years. Early retirement benefits paid to members are computed as the pro rata portion of the normal retirement benefit, based on service not to exceed 16 years. Death, disability, and spousal benefits are also available. \n \nContributions and Vesting Members are required to contribute 7.5% of their annual salary. Those who became members prior to July 1, 2012 must also contribute an additional 2.5% of their annual salary if spousal benefit is elected. Employer contributions are actuarially determined and approved and certified by the GJRS Board. \n \nPursuant to O.C.G.A. 47-23-81, the employer contributions for state court judges and solicitors are funded by the State of Georgia on behalf of the local county employers and pursuant to O.C.G.A. 47-23-82, the employer contributions for juvenile court judges are funded by the state on behalf of local county employers. \n \nEmployer and nonemployer contributions required for fiscal year 2020 were based on the June 30, 2017 actuarial valuation, as follows: \n \nEmployer and nonemployer: Normal Accrued liability Total \n \n13.76 % (4.63) 9.13 % \n \nMembers become vested after 10 years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \n(e) GMPF is a single-employer defined benefit pension plan established on July 1, 2002 by the Georgia General Assembly for the purpose of providing retirement allowances and other benefits for members of the Georgia National Guard (the National Guard). The ERS Board administers the GMPF. \nMembership As of June 30, 2020, GMPF had 1,223 retirees and beneficiaries currently receiving benefits. Active and inactive plan member information is maintained by one employer, the Georgia Department of Defense. \nBenefits A member becomes eligible for benefits upon attainment of age 60, with 20 or more years of creditable service (including at least 15 years of service as a member of the National Guard), having served at least 10 consecutive years as a member of the National Guard immediately prior to discharge, and having received an honorable discharge from the National Guard. \nThe retirement allowance is payable for life in the amount of $50 per month, plus $5 per month for each year of creditable service in excess of 20 years. The maximum benefit is $100 per month. \n \n(continued) 35 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \nContributions and Vesting Employer contributions are actuarially determined and approved and certified by the ERS Board. There are no member contributions required. \nEmployer contributions required for the year ended June 30, 2020 were $200.32 per active member and were based on the June 30, 2017 actuarial valuation. \nA member becomes vested after 20 years of creditable service (including at least 15 years of service as a member of the National Guard), having served at least 10 consecutive years as a member of the National Guard immediately prior to discharge, and having received an honorable discharge from the National Guard. \n(f) SCJRF is a single-employer defined benefit pension plan established by the Georgia General Assembly in 1945 for the purpose of providing retirement benefits to the superior court judges of the State of Georgia. SCJRF is directed by its own Board of Trustees (SCJRF Board). The ERS Board and SCJRF Board entered into a contract for the System to administer the plan effective July 1, 1995. \nMembership As of June 30, 2020, SCJRF had five retirees and beneficiaries currently receiving benefits and no active members. No new members are allowed in SCJRF. \nBenefits The normal retirement for SCJRF is age 68, with 19 years of creditable service, with a benefit of two-thirds the salary paid to superior court judges. A member may also retire at age 65, with a minimum of 10 years of creditable service, with a benefit of one-half the salary paid to superior court judges. Death, disability, and spousal benefits are also available. \nContributions and Vesting Employer contributions are not actuarially determined, but are provided on an as-needed basis to fund current benefits. \n(g) DARF is a multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1949 for the purpose of providing retirement benefits to the district attorneys of the State of Georgia. DARF is directed by its own Board of Trustees (DARF Board). The ERS Board and DARF Board entered into a contract for the System to administer the plan effective July 1, 1995. \nMembership As of June 30, 2020, DARF had three retirees and beneficiaries currently receiving benefits and no active members. No new members are allowed into DARF. \nBenefits Persons appointed as district attorney emeritus shall receive an annual benefit of $15,000, or one-half of the state salary received by such person as a district attorney for the calendar year immediately prior to the person's retirement, whichever is greater. \nContributions and Vesting Employer contributions are not actuarially determined, but are provided on an as-needed basis to fund current benefits. \n(h) SEAD-OPEB is a cost-sharing multiple-employer defined benefit other postemployment benefit plan created in 2007 by the Georgia General Assembly to amend Title 47 of the O.C.G.A., relating to retirement, so as to establish a fund for the provision of term life insurance to retired and vested inactive members of ERS, LRS, and GJRS. Effective July 1, 2009, no newly hired members of any Georgia public retirement system are \n(continued) 36 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \neligible for term life insurance under SEAD. The SEAD-OPEB trust fund accumulates the premiums received from the aforementioned retirement systems, including interest earned on deposits and investments of such payments from retired and vested inactive members. There were 444 employers and 1 nonemployer contributing entity participating in the plan during 2020. Total participation in SEAD-OPEB at June 30, 2020 was 66,166 as detailed in the following chart: \nSEAD Membership as of June 30, 2020 \n \nRetirees and beneficiaries Terminated employees Active plan members \n \n1,016 \n \n21,020 44,130 \n \nEmployee contribution rates as a percentage of member's salaries for the fiscal year ended June 30, 2020 were as follows: ERS Old Plan  0.45% and ERS New Plan, LRS, and GJRS  0.23%. ERS Old Plan members were hired prior to July 1, 1982 and New Plan members were hired on or after July 1, 1982, but prior to January 1, 2009. \nGeorgia law provides that employee contributions to the plan shall be in an amount established by the Board of Trustees (SEAD Board) not to exceed one-half of 1% of the member's earnable compensation. There were no employer contributions required for the fiscal year ended June 30, 2020. \nAccording to the policy terms covering the lives of members, insurance coverage is provided on a monthly, renewable term basis, and no return premiums or cash value are earned. The net position represents the excess accumulation of investment income and premiums over benefit payments and expenses, and is held as a reserve for payment of death benefits under existing policies. \nThe amount of insurance for a retiree with creditable service prior to April 1, 1964 is the full amount of insurance under SEAD-Active in effect on the date of retirement. The amount of insurance for a service retiree with no creditable service prior to April 1, 1964 is 70% of the amount of insurance under SEAD-Active at age 60 or at termination, if earlier. Life insurance proceeds are paid in a lump sum to the beneficiary upon death of the retiree. \nAdministrative costs for the plan are determined based on the plan's share of overhead costs to accumulate and invest funds, actuarial services, and to process benefit payments to beneficiaries. Administrative fees are financed from the assets of the plan. \n(i) GDCP is a defined contribution plan established by the Georgia General Assembly in July 1992 for the purpose of providing retirement allowances for state employees who are not members of a public retirement or pension system and do not participate in Social Security. GDCP is administered by the ERS Board. There were 69 employers participating in the plan during 2020. There were 128,662 members as of June 30, 2020. \nBenefits A member may retire and elect to receive periodic payments after attainment of age 65. The payments will be based upon mortality tables and interest assumptions adopted by the ERS Board. If a terminated member has less than $5,000 credited to his/her account, the ERS Board has the option of requiring a lump-sum distribution to the member. Upon the death of a member, a lump-sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary. \n(continued) 37 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \nContributions and Vesting Members are required to contribute 7.5% of their annual salary and vest immediately in the plan upon contribution. There are no employer contributions. Earnings will be credited to each member's account as adopted by the ERS Board. Upon termination of employment, the amount of the member's account is refundable upon request by the member. \n(j) The 401(k) Plan was established by the State of Georgia Employee Benefit Plan Council in accordance with Georgia Law 1985, as amended, O.C.G.A, Sections 45-18-50 through 45-18-58, and Section 401(k) of the Internal Revenue Code (IRC). On October 1, 1994, activity commenced when the 401(k) Plan became available to employees of the State of Georgia Community Service Boards (CSBs). On December 1, 1998, the 401(k) Plan became available to employees of the Georgia Lottery Corporation (GLC). On July 1, 2005, the Plan became available to employees of Fayette County Board of Education; on July 1, 2006, the Plan became available to employees of Walton County Board of Education; on January 1, 2010, the Plan became available to employees of Henry County Board of Education; and on July 1, 2017, the Plan became available to employees of the Baldwin County Board of Education. \nEffective July 1, 1998, the State of Georgia Employee's Deferred Compensation Group Trust (the Master Trust) was formed for the State of Georgia Deferred Compensation Program to serve as the funding medium for the 401(k) Plan. At that time, the 401(k) Plan began operating on an employee elective deferral basis for all state employees working at least 1,000 hours in a 12-month period. All assets of the 401(k) Plan are held in trust for the exclusive benefit of the participants and their beneficiaries. The assets of the 401(k) Plan and the 457 Plan are commingled in the Master Trust with the respective trusts owning units of the Master Trust. Participant contributions are invested according to the participant's investment election. If the participant does not make an election, investments are automatically defaulted to a Lifecycle Fund based on the participant's date of birth. \nEffective July 1, 2005 (HB275), the ERS Board became the trustee of the 401(k) Plan. Alight Solutions and J.P. Morgan hold, administer, and invest the assets of the Master Trust. \nContributions and Vesting Participating CSBs, the GLC, and Walton and Henry County Boards of Education offer employer contributions, some matching, some automatic, and some a combination of both, to eligible employees at various rates (limited to a maximum of $280,000 base salary in calendar year 2019 and $285,000 in calendar year 2020). As of January 1, 2009, individual participants may defer up to 80% of eligible compensation, or up to limits prescribed by the IRC (whichever is less). \nEffective January 1, 2009, in accordance with O.C.G.A. 47-2-350 through 47-2-360, newly hired state employees, as well as rehired state employees who did not maintain eligibility for the ERS Old Plan or New Plan, are members of GSEPS. From January 1, 2009 to June 30, 2014, the GSEPS tier included automatic enrollment in the 401(k) Plan at a contribution rate of 1% of salary. Effective July 1, 2014, in accordance with HB764, the employee contribution rate for automatic enrollment increased from 1% to 5%. The State matches 100% of the employee's initial 1% contribution and 50% of contributions above 1% and up to 5%. Therefore, the state will match 3% of salary when an employee contributes at least 5% to the 401(k) Plan. Employee contributions greater than 5% of salary do not receive any additional matching funds. Plan participants who are not employees of the GLC, a CSB, Walton and Henry County Boards of Education, or who are not GSEPS eligible, do not receive any employer contributions in their 401(k) Plan. \nAll employer contributions are subject to a vesting schedule, which determines eligibility to receive all or a portion of the employer contribution balance at the time of any distribution from the account after separation from all state service. Vesting is determined based on the schedule on the following page: \n(continued) 38 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \nLess than 1 year 1 2 3 4 5 or more years \n \n-- % 20 40 60 80 100 \n \nFor CSB/GLC participants whose services terminated prior to January 1, 2010 but after December 31, 2001, \n \nthe following vesting schedule applies: \n \nLess than 2 years \n \n-- % \n \n2 \n \n20 \n \n3 \n \n40 \n \n4 \n \n60 \n \n5 \n \n80 \n \n6 or more years \n \n100 \n \nFor CSB/GLC participants whose services terminated prior to January 1, 2002, the following vesting schedule applies: \n \nLess than 3 years 3 4 5 6 7 or more years \n \n-- % 20 40 60 80 100 \n \nEmployee contributions and earnings thereon are 100% vested at all times. The 401(k) Plan also allows participants to roll over amounts from other qualified plans to their respective account in the 401(k) Plan on approval by the 401(k) plan administrator. Such rollovers are 100% vested at the time of transfer. \nParticipation As of June 30, 2020, the 401(k) Plan had 71,716 participants with a balance. A total of 470 employers transmitted contributions to the plan during 2020. \nDistributions The participant may receive the value of his or her vested accounts upon attaining age 59 , qualifying financial hardship, or 30 days after retirement or other termination of service (employer contribution balances are only eligible for distribution upon separation from service). Upon the death of a participant, his or her beneficiary shall be entitled to the vested value of his or her accounts. Employees who die while actively employed and eligible for 401(k) Plan employer matching contributions become fully vested in employer contributions upon death. Distributions are made in installments or in a lump sum. \n(k) The 457 Plan was established by the State Personnel Board in accordance with Georgia Law 1974, page 198 as amended, O.C.G.A., Sections 45-18-30 through 45-18-36, and Section 457 of the IRC. The 457 Plan is available to employees of the State of Georgia and county health departments and permits such employees to defer a portion of their annual salary until future years. Employee contributions and earnings thereon are 100% vested at all times. \nEffective July 1, 1998, the Master Trust was formed for the State of Georgia Deferred Compensation Program to serve as the funding medium for the 457 Plan. All assets of the 457 Plan are held in trust for the exclusive benefit of the participants and their beneficiaries. The assets of the 457 Plan and the 401(k) Plan are \n(continued) 39 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \ncommingled in the Master Trust with the respective trusts owning units of the Master Trust. Participant contributions are invested according to the participant's investment election. If the participant does not make an election, investments are automatically defaulted to a Lifecycle Fund based on the participant's date of birth. \nEffective July 1, 2005 (HB275), the ERS Board became the trustee of the 457 Plan. Alight Solutions and J.P. Morgan hold, administer, and invest the assets of the Master Trust. \nParticipation As of June 30, 2020, the 457 Plan had 12,331 participants with a balance. A total of 330 employers transmitted contributions to the plan during 2020. \nDistributions The balance in the employee's account in the 457 Plan is not available to the employee until age 70 , termination, retirement, death, or unforeseeable emergency, as defined in the 457 Plan. Upon the death of a participant, his or her beneficiary shall be entitled to the vested value of his or her accounts. Distributions are made in installments or in a lump sum. \n(l) SBF was established under O.C.G.A. 47-2-128(c)(3) within the ERS trust solely for maintaining group term life insurance coverage for members of the plan. All assets of SBF are therefore limited to the payment of benefits and expenses for such coverage and cannot be used to pay pension benefits of ERS. SBF is shown on the financial statements separately as a custodial fund to reflect ERS's custodial responsibility and to account for assets held for distribution to SEAD-Active and SEAD-OPEB. SBF may only be used to pay benefits or expenses of SEAD-OPEB or SEAD-Active with authorization by the ERS Board. An actuarial valuation is not prepared, as there are no funding requirements. \n(m) SEAD-Active is a cost-sharing multiple-employer life insurance plan created in 2007 by the Georgia General Assembly to amend Title 47 of the O.C.G.A., relating to retirement, so as to establish a fund for the provision of term life insurance to active members of ERS, LRS, and GJRS. Effective July 1, 2009, no newly hired members of any Georgia public retirement system are eligible for term life insurance under SEAD. The SEAD-Active fund accumulates the premiums received from the aforementioned retirement systems, including interest earned on deposits and investments of such payments from active members. There were 444 employers and 1 nonemployer contributing entity participating in the plan during 2020. As of June 30, 2020, there were 21,020 active plan members in SEAD-Active. \nEmployee contribution rates as a percentage of member's salaries for the fiscal year ended June 30, 2020 were as follows: ERS Old Plan  0.05% and ERS New Plan, LRS, and GJRS  0.02%. ERS Old Plan members were hired prior to July 1, 1982 and new plan members were hired on or after July 1, 1982, but prior to January 1, 2009. \nGeorgia law provides that employee contributions to the plan shall be in an amount established by the SEAD Board not to exceed one-half of 1% of the member's earnable compensation. There were no employer contributions required for the fiscal year ended June 30, 2020. \nAccording to the policy terms covering the lives of members, insurance coverage is provided on a monthly, renewable term basis, and no return premiums or cash value are earned. The net position represents the excess accumulation of investment income and premiums over benefit payments and expenses, and is held as a reserve for payment of death benefits under existing policies. \nThe amount of insurance coverage is equal to 18 times monthly earnable compensation frozen at age 60. For members with no creditable service prior to April 1, 1964, the amount decreases from age 60 by a half of 1% \n(continued) 40 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \nper month until age 65, at which point the member will be covered for 70% of the age 60 coverage. Life insurance proceeds are paid in a lump sum to the beneficiary upon death of the member. \nAdministrative costs for the plan are determined based on the plan's share of overhead costs to accumulate and invest funds, actuarial services, and to process benefit payments to beneficiaries. Administrative fees are financed from the assets of the plan. \n(3) Significant Accounting Policies and System Asset Matters \n(a) Basis of Accounting The System's financial statements are prepared in accordance with U.S. generally accepted accounting principles as applicable to governmental organizations. The System follows the reporting requirements established by the GASB. \nFiduciary funds include the defined benefit plans and defined contribution plans, which are accounted for on the flow of economic resources measurement focus and the accrual basis of accounting. Contributions to the defined benefit pension plans and OPEB plan are recognized when due, based on statutory requirements. Benefits and refunds are recognized when due and payable in accordance with the terms of each plan. Contributions to the deferred compensation plans are recognized as received. The SBF is a custodial fund and accounted for on the flow of economic resources measurement focus and the accrual basis of accounting. The proprietary fund comprises the SEAD-Active plan. This fund is accounted for on the flow of economic resources measurement focus and uses the accrual basis of accounting. The principal operating revenues are derived from insurance premiums. Operating expenses include the cost of claims and related expenses. \n(b) Reporting Entity The System is a component unit of the State of Georgia; however, it is accountable for its own fiscal matters and presentation of its separate financial statements. The System has considered potential component units under GASB Statements No. 80, Blending Requirements for Certain Component Units, No. 61, The Financial Reporting Entity's Omnibus  An Amendment of GASB Statement No. 14 and No. 34, and No. 39, \nDetermining Whether Certain Organizations are Component Units, and determined there were no component units of the System. \n(c) Cash and Cash Equivalents Cash and cash equivalents, reported at cost, include cash on deposit at banks and cash on deposit with the investment custodian. \n(d) Investments Investments are reported at fair value, and in some cases, net asset value (NAV) as a practical expedient to fair value. Equity securities traded on a national or international exchange are valued at the last reported sales price. Investments in private investment companies are valued utilizing the NAVs provided by the underlying private investment companies as a practical expedient. The Pooled Investment Fund (the Fund) applies the practical expedient to its investments in private investment companies on an investment by investment basis, consistent with the Fund's entire position in a particular investment, unless it is probable that the Fund will sell a portion of an investment at an amount different from the NAV of the investment. Private equity fair value is measured using the valuation of the underlying companies as reported by the general partner. These investments, in the form of limited partnerships, reflect values and related performance on a quarter-lag basis due to the nature of the investments and the time it takes to value them. The estimated fair value of investments without readily determinable market values could differ significantly if a ready market for these assets existed. Fixed income securities are valued based primarily on quoted market prices provided by independent pricing sources. Global foreign exchange holdings are translated \n(continued) 41 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \nusing a third-party vendor. Investment income is recognized as earned by the System. There are no investments in, loans to, or leases with parties related to the System. \nThe System utilizes various investment instruments. Investment securities, in general, are exposed to various risks, such as interest rate, credit, foreign currency, and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the financial statements. \nThe System's policy with regard to the allocation of invested assets is established on a cost basis in compliance with Georgia statute. Plan assets are managed on a total return basis with a long-term objective of achieving and maintaining a fully funded status for the benefits provided through the pension and OPEB plans. The following was the System's adopted asset allocation policy as of June 30, 2020: \n \nAsset class Fixed income Equities Alternative investments \nTotal \n \nTarget allocation 25%-45% 55%-75% 0%-5% 100% \n \nApproximately 19.4% of the investments held in trust for pension and OPEB benefits are invested in debt securities of the U.S. government. The System has no investments in any one organization, other than those issued by the U.S. government and its instrumentalities, that represent 5% or more of the System's net position restricted for pensions and OPEB and SBF. \nFor the year ended June 30, 2020, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was (3.6)%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. \n(e) Capital Assets Capital assets, including software development costs, are stated at cost less accumulated depreciation and reside in ERS. The capitalization thresholds are $100,000 for buildings and building improvements and $5,000 for equipment and vehicles. Depreciation on capital assets is computed using the straight-line method over estimated useful lives of 3 to 40 years. Depreciation expense is included in administrative expenses. Maintenance and repairs are charged to administrative expenses when incurred. When assets are retired or otherwise disposed of, the costs and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in the Combining Statement of Changes in Fiduciary Net Position in the period of disposal. \n(f) Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of net position and changes therein. Actual results could differ from those estimates. \n \n(continued) 42 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \n(g) New Accounting Pronouncements \nPronouncements effective for the 2020 financial statements: \nIn May 2020, the GASB issued Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance effective immediately. The primary objective of this Statement is to provide temporary relief to governments and stakeholders as a result of the COVID-19 pandemic. This Statement postpones the effective dates of certain provisions in the Statements and Implementation Guides that first became effective or are scheduled to become effective for periods beginning after June 15, 2018 and later. \nPronouncements issued and not yet effective, but early implemented for the 2020 financial statements: \nIn January 2017, the GASB issued Statement No. 84, Fiduciary Activities effective for fiscal years beginning after December 15, 2018. In May 2020, the GASB issued Statement No. 95 which changed the effective date for Statement No. 84 to fiscal years beginning after December 15, 2019. The objective of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. See Change in Accounting Principle section for the impact to the System. \nPronouncements issued, but not yet effective: \nIn June 2017, the GASB issued Statement No. 87, Leases effective for fiscal years beginning after December 15, 2019. In May 2020, the GASB issued Statement No. 95 which changed the effective date for Statement No. 87 to fiscal years beginning after June 15, 2021. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. The System is in the process of evaluating the impact of this pronouncement on its financial statements. \nIn June 2018, the GASB issued Statement No. 89, Accounting for Interest Costs Incurred before the End of a Construction Period effective for fiscal years beginning after December 15, 2019. In May 2020, the GASB issued Statement No. 95 which changed the effective date for Statement No. 89 to fiscal years beginning after December 15, 2020. The objectives of this Statement are to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period. In addition, this Statement's goal is to simplify accounting for interest cost incurred before the end of a construction period. The System does not anticipate this pronouncement will impact its financial statements and related reporting. \nIn August 2018, the GASB issued Statement No. 90, Majority Equity Interests-an amendment of GASB Statements No. 14 and No. 61 for fiscal years beginning after December 15, 2018. In May 2020, the GASB issued Statement No. 95 which changed the effective date for Statement No. 90 to fiscal years beginning after December 15, 2019. The objectives of this Statement are to improve the consistency and comparability of reporting a government's majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. The System is in the process of evaluating the impact of this pronouncement on its financial statements. \nIn May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations effective for fiscal years beginning after December 15, 2020. In May 2020, the GASB issued Statement No. 95 which changed the effective date for Statement No. 91 to fiscal years beginning after December 15, 2021. The objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with commitments extended by issuers, arrangements associated with conduit debt obligations, and related note disclosures. The System does not anticipate this statement will impact its financial statements and related reporting. \n(continued) 43 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 In January 2020, the GASB issued Statement No. 92, Omnibus 2020 effective for fiscal years beginning after June 15, 2020. In May 2020, the GASB issued Statement No. 95 which changed the effective date for Statement No. 92 to fiscal years beginning after June 15, 2021. The objectives of this Statement are to enhance comparability in accounting and financial reporting as well as improve the consistency of authoritative literature. The variety of topics covered include the effective date for Statement No. 87, the reporting of intra-entity transfers, the applicability of certain requirements of Statements No. 73, 74, and 84, and the measurement of liabilities related to asset retirement obligations. The System is in the process of evaluating the impact of this pronouncement on its financial statements. In March 2020, the GASB issued Statement No. 93, Replacement of Interbank Offered Rates effective for fiscal years beginning after June 15, 2020. In May 2020, the GASB issued Statement No. 95 which changed the effective date for Statement No. 93 to fiscal years beginning after June 15, 2021. The objective of this Statement is to address the accounting and financial reporting implications that result from the replacement of an interbank offered rate (IBOR). The System does not anticipate this pronouncement will impact its financial statements and related reporting. In March 2020, the GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements effective for fiscal years beginning after June 15, 2022. The objective of this Statement is to improve the comparability of financial statements among governments that enter into public-private and public-public partnership arrangements (PPP) and availability payment arrangements (APAs). The System does not anticipate this pronouncement will impact its financial statements and related reporting. In May 2020, the GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements, effective for fiscal years beginning after June 15, 2022. The objective of this Statement is to better meet the informational needs of financial statement users by establishing uniform accounting and financial reporting requirements and improving the comparability of financial statements among governments that have entered into subscription based information technology arrangements (SBITAs). The System is in the process of evaluating the impact of this pronouncement on its financial statements. \n(continued) 44 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \n(h) Change in Accounting Principle \n \nDuring fiscal year 2020, the System adopted the provisions of GASB Statement No. 84, Fiduciary Activities. The impact on the financial statements and related schedules included changing the previously reported agency fund to a custodial fund. The net position of this newly classified SBF is required to be included on the Combining Statement of Changes in Fiduciary Net Position resulting in a restated beginning fund balance. Additionally, the previously reported agency fund Statement of Changes in Assets and Liabilities for SBF has been removed from the Additional Information section. \nA summary of the changes to beginning net position is as follows (amounts in thousands): \n \nCombining Statement of Fiduciary Net Position: \n \nTotal liabilities as of 6/30/19, as previously reported $ \n \nAdoption of GASB Statement No. 84 \n \nTotal liabilities as of 6/30/19, as restated $ \n \nCombining Statement of Changes in Fiduciary Net Position: \n \nTotal additions as of 6/30/19, as previously reported $ \n \nAdoption of GASB Statement No. 84 \n \nTotal additions as of 6/30/19, as restated $ \n \nTotal deductions as of 6/30/19, as previously reported $ \n \nAdoption of GASB Statement No. 84 \n \nTotal deductions as of 6/30/19, as restated $ \n \nNet Position, as of 6/30/19 as previously reported \n \n$ \n \nAdoption of GASB Statement No. 84 \n \nNet Position as of 6/30/19, as restated $ \n \nSBF \n \nSystem Total \n \n158,744 $ (158,744) \n-- $ \n \n505,291 (158,744) 346,547 \n \n-- 10,208 10,208 \n-- 5 5 -- 158,744 158,744 \n \n$ 2,094,385 10,208 \n$ 2,104,593 $ 1,733,220 \n5 $ 1,733,225 $ 18,260,085 \n158,744 $ 18,418,829 \n \n(4) Investment Program \n \nThe System maintains sufficient cash to meet its immediate liquidity needs. Cash not immediately needed is invested as directed by the ERS Board. All investments are held by agent custodial banks in the name of the System. State statutes and the System's investment policy authorize the System to invest in a variety of shortterm and long-term securities as follows: \n(a) Cash and Cash Equivalents Custodial credit risk is the risk that in the event a depository institution or counterparty fails, the System would not be able to recover the value of its deposits or investments. The System does not have a formal policy relating to custodial credit risk. The carrying amount of the System's deposits totaled $276.3 million at June 30, 2020, with actual bank balances of $275.0 million. The System's bank balances of $253.8 million are fully insured through the Federal Deposit Insurance Corporation, an independent agency of the U.S. government. The remaining bank deposits of $21.2 million are uninsured and uncollateralized. The System's noncash investments are held in the System's name and are not exposed to custodial credit risk. \nShort-term securities authorized but not currently used are as follows: \n 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. \n(continued) 45 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \n U.S. Treasury obligations \n Commercial paper, with a maturity of 180 days or less. Commercial paper is an unsecured promissory note issued primarily by corporations for a specific amount and maturing on a specific day. The System considers for investment only commercial paper of the highest quality, rated P-l and/or A-l by national credit rating agencies. \n Master notes, an overnight security administered by a custodian bank and an obligation of a corporation whose commercial paper is rated P-l and/or A-l by national credit rating agencies. \nInvestments in commercial paper or master notes are limited to no more than $500 million in any one name. \n(b) Investments Fixed income investments, managed by the Division of Investment Services (the Division), are authorized in the following instruments: \n U.S. and foreign government obligations. At June 30, 2020, the System held U.S. Treasury bonds of approximately $3.6 billion. \n U.S. and foreign corporate obligations. At June 30, 2020, the System held U.S. corporate bonds of approximately $1.2 billion and international corporate bonds of approximately $212.1 million. \n Obligations unconditionally guaranteed by agencies of the U.S. government. At June 30, 2020, the System did not hold agency bonds. \n Private placements are authorized under the same general restrictions applicable to corporate bonds. At June 30, 2020, the System did not hold private placements. \nMortgage investments are authorized to the extent that they are secured by first mortgages on improved real property located in the State of Georgia. \nEquity securities are also authorized (in statute) for investment as a complement to the System's fixed income portfolio and as a long-term inflation hedge. By statute, no more than 75% of the total invested assets on a historical cost basis may be placed in equities. Equity holdings in any one corporation may not exceed 5% of the outstanding equity of the issuing corporation. The equity portfolio is managed by the Division, in conjunction with independent advisers. Buy/sell decisions are based on securities meeting rating criteria established by the ERS Board, in-house research considering such matters as yield, growth, and sales statistics, and analysis of independent market research. Equity trades are approved and executed by the Division's staff. Common stocks eligible for investment are approved by the Investment Committee of the ERS Board before being placed on an approved list. \nEquity investments are authorized in the following instruments: \n Domestic equities are those securities considered by O.C.G.A. to be domiciled in the United States. At June 30, 2020, the System held domestic equities of approximately $8.6 billion, excluding the 401(k) and 457 plans. \n International equities, including American Depository Receipts (ADR), are not considered by the O.C.G.A. to be domiciled in the United States. At June 30, 2020, the System held international equities of approximately $1.1 billion and ADRs of approximately $1.5 billion, excluding the 401(k) and 457 plans. \n(continued) 46 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \n Alternative investments are authorized (in statute) to provide portfolio diversification and to enhance the risk-adjusted rate of return for the retirement fund that benefits the members of the System. By statute, the allocation to alternative investments shall not, in the aggregate, exceed 5% of the System's plan assets at any time. Further, in any calendar year, new commitments to alternative investments shall not, in the aggregate, exceed 1.0% of the System's plan assets until the first occurrence that 4.5% of the assets have been invested, at which time there shall be no limit on the percentage of commitments that may be made in any calendar year, subject to compliance with other provisions of the statute. At June 30, 2020, the System held private equity investments of approximately $365.5 million. \n \nThe Master Trust invests in various mutual funds, common collective trust funds, and separate accounts, as selected by participants. Each participant is allowed to select and invest contributions into investment options that own one or more commingled funds, as authorized by the ERS Board. Participants may also contribute to a self-directed brokerage account that offers investments in various mutual funds and equities. At June 30, 2020, the deferred compensation plans held commingled funds of approximately $1.9 billion, mutual funds of approximately $7.5 million, domestic equities of approximately $18.8 million, and international equities of approximately $1.9 million. \nSubstantially all of the investments of ERS, PSERS, LRS, GJRS, GMPF, SEAD-OPEB, SBF, and SEADActive are pooled into one common investment fund. Units in the pooled common investment fund are allocated to the respective plans based upon the cost of assets contributed, and additional units are allocated to the participating plans based on the market value of the pooled common investment fund at the date of contribution. Net income of the pooled common investment fund is allocated monthly to the participating plans, based upon the number of units outstanding during the month. \n \nThe units and fair value of each plan's equity in the pooled common investment fund at June 30, 2020, were as follows (dollars in thousands): \n \nEmployees' Retirement System Public School Employees Retirement System Legislative Retirement System Georgia Judicial Retirement System Georgia Military Pension Fund State Employees' Assurance Department - OPEB Survivors Benefit Fund \n \nFair value $ 13,456,293 \n958,718 34,599 \n485,633 28,995 \n1,256,402 167,359 \n \nUnits 2,412,710 \n171,898 6,204 \n87,074 5,199 \n225,273 30,007 \n \nTotal defined benefit plans State Employees' Assurance Department - Active \nTotal in pooled investment funds \n \n16,387,999 319,146 \n$ 16,707,145 \n \n2,938,365 57,223 \n2,995,588 \n \nFair Value Measurements. The System categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the inputs used in valuation and gives the highest priority to unadjusted quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the hierarchy is based on whether the significant inputs into the valuations are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest level, Level 1, is given to unadjusted quoted prices in active markets and the lowest level, Level 3, to unobservable inputs. \n \n(continued) 47 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \nThe three levels of the fair value hierarchy are as follows: \nLevel 1  Valuations based on unadjusted quoted prices for identical instruments in active markets that the System has the ability to access. \n \nLevel 2  Valuations based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs are observable. \nLevel 3  Valuations based on inputs that are unobservable and significant to the overall fair value measurement. \nThe System also has investments held through limited partnerships for which fair value is estimated using the NAV reported by the general partner as a practical expedient to fair value. Such investments have not been categorized within the fair value hierarchy. \nIn instances where inputs used to measure fair value fall into different levels in the fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The System's assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each investment. The table below shows the fair value leveling of the System's investments (in thousands): \n \nInvestments by fair value level \nEquities: Domestic International \nObligations: Domestic: U.S. treasuries Corporate bonds International: Corporate bonds \nMutual funds Commingled funds \nTotal investments by fair value level Investments measured at NAV* Private equity funds \nTotal investments \n \nFair value measures using \n \nprices in active markets for identical assets \n \nSignificant other \nobservable inputs \n \nSignificant unobservabl \ne inputs \n \n(Level 1) \n \n(Level 2) \n \n(Level 3) \n \nTotal \n \n$ 8,641,627 2,615,352 \n \n-- 20,762 \n \n-- 8,641,627 -- 2,636,114 \n \n3,584,895 -- \n-- 7,498 70,297 \n \n-- 1,162,433 \n212,119 -- \n1,815,551 \n \n$ 14,919,669 3,210,865 \n \n-- 3,584,895 -- 1,162,433 \n \n-- \n \n212,119 \n \n-- \n \n7,498 \n \n-- 1,885,848 \n \n-- 18,130,534 \n365,458 $ 18,495,992 \n \n*Certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Combining Statement of Fiduciary Net Position. \n \n(continued) 48 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \nEquity securities classified in Level 1 are valued using prices quoted in active markets for those securities. Equity securities in Level 2 are valued using prices quoted for similar instruments in active markets. Equity securities classified in Level 3, if any, are valued using third-party valuations not currently observable in the market. \nDebt securities classified in Level 1 are valued using prices quoted in active markets. Debt securities classified in Level 2 are valued using either a bid evaluation or a matrix pricing technique. Bid evaluations may include market quotations, yields, maturities, call features, and ratings. Matrix pricing is used to value securities based on the securities' relationship to benchmark quoted prices. These securities have nonproprietary information that was readily available to market participants, from multiple independent sources, which are known to be actively involved in the market. \nMutual funds and commingled funds classified in Level 1 are valued using prices quoted in active markets for those investment types. Commingled funds classified in Level 2 are valued using observable underlying inputs that are market corroborated. \nUnfunded commitments, redemption frequency, and redemption notice period relative to the System's alternative investments for which the System utilized NAV or its equivalent relative to the determination of fair value at June 30, 2020, are as follows (in thousands): \n \nPrivate equity funds \n \nInvestments measured at \nNAV \n$ 365,458 \n \nUnfunded commitments \n289,352 \n \nRedemption frequency (if \ncurrently eligible) \nNot Eligible \n \nRedemption notice period \nN/A \n \nInvestments in privately held limited partnerships are valued using the NAV provided by the general partner as of March 31 of each fiscal year, adjusted by the System for cash flows through June 30. The quarterly values of the partnership investments provided from the general partner are reviewed by the System to determine if any adjustments are necessary. The types of partnership strategies held include growth equity, leveraged buyouts, and mezzanine debt. Two of the 21 partnerships held are secondary investments and are in or nearing the wind up phase of the fund. The remaining investments typically have an approximate life of 810 years. These investments are considered illiquid since the nature of these private investments prohibits redemption with the fund; instead, distributions are received from the general partner through liquidation of the underlying assets of the fund. The System currently has no plans to sell any of the investments prior to their liquidation resulting in these assets being carried at the NAV estimated by the general partner and adjusted for second quarter cash flows by the System. \nCredit Risk: Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations to the System. O.C.G.A. 47-20-84 limits investments to investment grade securities. It is the System's investment policy to require that the bond portfolio be of high quality and chosen with respect to maturity ranges, coupon levels, refunding characteristics, and marketability. The System's policy is to require that new purchases of bonds be restricted to high-grade bonds rated no lower than \"A\" by any nationally recognized statistical rating organization. If a bond is subsequently downgraded to a rating below \"A,\" it is placed on a watch list. The System holds two bonds that were downgraded to a rating below \"A.\" Obligations of the U.S. government or obligations explicitly guaranteed by the U.S. government are not considered to have credit risk and do not require disclosure of credit quality. The quality ratings of investments in fixed income securities as described by Standard \u0026 Poor's and by Moody's Investors Service, which are nationally recognized statistical rating organizations, at June 30, 2020, are shown in the table on the following page (in thousands). \n \n(continued) 49 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \n \nQuality Ratings of Fixed Income Investments Held at June 30, 2020 \n \nInvestment type Domestic obligations: \nU.S. treasuries \n \nStandard and Poor's/ June 30, 2020 \n \nMoody's quality rating \n \nfair value \n \n$ \n \n3,584,895 \n \nCorporates \n \nAAA/Aaa AA/Aa AA/A A/A A/Baa BBB/A \n \n185,401 267,962 105,112 408,400 102,518 \n93,040 \n \nTotal domestic corporates \n \n1,162,433 \n \nInternational obligations: Corporates \nTotal international corporates Total fixed income investments \n \nAA/Aa AA/A \n \n106,153 105,966 \n \n212,119 \n \n$ \n \n4,959,447 \n \nMutual funds, commingled funds, and various equities of the deferred compensation plans are not considered to have credit risk and do not require disclosure of credit risk rating. \nConcentration of Credit Risk: Concentration of credit risk is the risk of loss that may be attributed to the magnitude of a government's investment in a single issuer. At June 30, 2020, the System did not have debt or equity investments in any one organization, other than those issued or guaranteed by the U.S. government or its agencies, which represented greater than 5% of total investments. \nInterest Rate Risk: Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. While the System has no formal interest rate risk policy, active management of the bond portfolio incorporates interest rate risk to generate improved returns. This risk is managed within the portfolio using the effective duration method. This method is widely used in the management of fixed income portfolios and quantifies to a much greater degree the sensitivity to interest rate changes when analyzing a bond portfolio with call options, prepayment provisions, and any other cash flows. Effective duration makes assumptions regarding the most likely timing and amounts of variable cash flows and is best utilized to gauge the effect of a change in interest rates on the fair value of a portfolio. It is believed that the reporting of effective duration found in the table on the following page quantifies to the fullest extent possible the interest rate risk of the System's fixed income assets (in thousands). \n \n(continued) 50 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \n \nEffective Duration of Fixed Income Assets \n \nFixed income type \nDomestic obligations: U.S. treasuries Corporates \n \nFair value June 30, 2020 \n \nPercent of all fixed \nincome assets \n \nEffective duration (years) \n \n$ 3,584,895 1,162,433 \n \n72.3 % \n \n6.8 \n \n23.4 \n \n3.9 \n \nInternational obligations: Corporates Total \n \n212,119 $ 4,959,447 \n \n4.3 \n \n5.3 \n \n100 % \n \n6.0 \n \nForeign Currency Risk: Foreign currency risk is the risk that changes in exchange rates will adversely impact the fair value of an investment. The System's currency risk exposures, or exchange rate risks, primarily reside within the System's international equity investment holdings. The System's asset allocation and investment policies allow for active and passive investments in international securities. The System's Boardadopted foreign exchange risk management policy is to minimize risk and protect the investments from negative impact by hedging foreign currency exposures with foreign exchange instruments when market conditions and circumstances are deemed appropriate. Foreign exchange instruments are used to protect the value of noncash investments from currency movements. The System's foreign exchange risk management policy does not quantify limitations on foreign currency-denominated investments. As of June 30, 2020, the System's exposure to foreign currency risk in U.S. Dollars, excluding the 401(k) and 457 plans, is highlighted in the table on the following page (in thousands). \n \n(continued) 51 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \n \nInternational Investment Securities at Fair Value as of June 30, 2020 \n \nCurrency \nAustralian dollar Brazilian real British pound Canadian dollar Chilean peso Colombian peso Czech krone Danish krone Euro Hong Kong dollar Indian rupee Indonesian rupiah Israeli shekel Japanese yen Malaysian ringgit Mexican peso New Taiwan dollar New Zealand dollar Norwegian krone Philippine peso Polish zloty Qatari riyal Singapore dollar South African rand South Korean won Swedish krona Swiss franc Thailand baht UAE dirham \n \nCash/cash equivalents \n \n$ \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \nEquities \n40,080 20,461 78,488 32,609 \n1,892 698 \n1,133 18,708 302,113 107,113 51,555 \n4,184 1,847 219,848 9,178 9,218 35,284 2,112 1,989 3,662 3,387 2,644 16,481 22,607 67,365 39,606 27,143 20,763 3,976 \n \nFixed income \n-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- \n \nTotal holdings subject to foreign currency risk \n \n-- \n \n1,146,144 \n \n-- \n \nInvestment securities payable in U.S. dollars \n \n-- \n \n1,488,052 \n \n212,119 \n \nTotal international investment securities - at fair value $ \n \n-- \n \n2,634,196 \n \n212,119 \n \nTotal \n40,080 20,461 78,488 32,609 \n1,892 698 \n1,133 18,708 302,113 107,113 51,555 \n4,184 1,847 219,848 9,178 9,218 35,284 2,112 1,989 3,662 3,387 2,644 16,481 22,607 67,365 39,606 27,143 20,763 3,976 \n1,146,144 \n1,700,171 \n2,846,315 \n \n(continued) 52 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \n \n(5) Securities Lending Program \n \nState statutes and ERS Board policies permit the System to lend its securities to broker/dealers with a simultaneous agreement to return the collateral for the same securities in the future. The System is presently involved in a securities lending program with major brokerage firms. The System lends equity and fixed income securities for varying terms and receives a fee based on the loaned securities' value. The System reports the gross loan fee income earned as investment income on the Combining Statement of Changes in Fiduciary Net Position. During a loan, the System continues to receive dividends and interest as the owner of the loaned securities. The brokerage firms pledge collateral securities consisting of U.S. government and agency securities, mortgage-backed securities issued by a U.S. government agency, corporate bonds, and equities. The collateral value must be equal to at least 102% to 109% of the loaned securities' value, depending on the type of collateral security. \nSecurities loaned totaled approximately $3.3 billion at fair value at June 30, 2020. The collateral value was equal to 105.1% of the loaned securities' value at June 30, 2020. The System's lending collateral was held in the System's name by the tri-party custodian. \nLoaned securities are included in the accompanying Combining Statement of Fiduciary Net Position since the System maintains ownership. The related collateral securities are not recorded as assets on the System's Combining Statement of Fiduciary Net Position, and a corresponding liability is not recorded, since the System is deemed not to have the ability to pledge or trade the collateral securities. In accordance with the criteria set forth in GASB Statement No. 28, Accounting and Financial Reporting for Securities Lending Transactions, the System is deemed not to have the ability to pledge or sell the collateral securities, since the System's lending contracts do not address whether the lender can pledge or sell the collateral securities without a borrower default, the System has not previously demonstrated that ability, and there are no indications of the System's ability to pledge or sell the collateral securities. \n(6) Capital Assets \nThe following is a summary of capital assets and depreciation information as of and for the year ended June 30, 2020 (dollars in thousands): \n \nCapital assets: Land Building Equipment Vehicles Computer software \nAccumulated depreciation for: Building Equipment Vehicles Computer software \nCapital assets, net \n \nBalance at June 30, 2019 \n \nAdditions \n \nDisposals \n \nBalance at June 30, 2020 \n \n$ \n \n4,350 \n \n2,800 \n \n3,511 \n \n-- \n \n14,345 \n \n25,006 \n \n-- \n \n-- \n \n4,350 \n \n-- \n \n-- \n \n2,800 \n \n326 \n \n(1,596) \n \n2,241 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n14,345 \n \n326 \n \n(1,596) \n \n23,736 \n \n(1,050) (3,059) \n-- (14,345) (18,454) \n \n$ \n \n6,552 \n \n53 \n \n(70) (240) \n-- -- (310) \n16 \n \n-- 1,596 \n-- -- 1,596 \n-- \n \n(1,120) (1,703) \n-- (14,345) (17,168) \n6,568 \n(continued) \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \n \n(7) Commitments \nAs of June 30, 2020, the System had committed to fund certain private equity partnerships for a total capital commitment of approximately $647.8 million. Of this amount, approximately $289.4 million remained unfunded and is not recorded on the System's Combining Statement of Fiduciary Net Position. \n(8) Net Pension Liability of Employers and Nonemployer - ERS \nThe components of the net pension liability of the participating employers and nonemployer at June 30, 2020 were as follows (dollars in thousands): \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployers' and nonemployer net pension liability \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \n17,717,243 13,502,286 \n4,214,957 76.21 % \n \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2019, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases Investment rate of return \n \n2.75% 3.25 - 7.00%, including inflation 7.30%, net of pension plan investment expense, including inflation \n \nPostretirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward two years for both males and females for service retirements and dependent beneficiaries. The RP-2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB and set back seven years for males and set forward three years for females was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the ERS Board on December 17, 2015, the numbers of expected future deaths are 9-12% less than the actual number of deaths that occurred during the study period for service retirements and beneficiaries and for disability retirements. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \nThe actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the investment rate of return. Subsequent to the June 30, 2017 measurement date, the ERS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the ERS Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 actuarial valuation. The assumed investment rate of return remained at 7.30% for the June 30, 2019 actuarial valuation. \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. \n \n54 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \nThe target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class Fixed income Domestic large equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n* Rates shown are net of inflation \n \nTarget allocation 30.00 % 46.20 1.30 12.40 5.10 5.00 \n100.00 % \n \nLong-term expected real rate of return* (0.10)% 8.90 13.20 8.90 10.90 12.00 \n \nDiscount rate: The discount rate used to measure the total pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \nSensitivity of the net pension liability to changes in the discount rate: The following presents the net pension liability, calculated using the discount rate of 7.30%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.30%) or 1-percentage-point higher (8.30%) than the current rate (dollars in thousands): \n \nEmployers' and nonemployer net pension liability \n \n1% Decrease \n(6.30%) \n$5,929,704 \n \nCurrent discount \nrate (7.30%) \n4,214,957 \n \n1% Increase (8.30%) \n2,751,621 \n \nActuarial valuation date: June 30, 2019 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2020 using standard roll-forward techniques for the actual total pension liability both before and after reflecting the two one-time 3% payments to certain retirees and beneficiaries effective July 2019 and January 2020. The difference between these two amounts is shown as a change in benefit terms. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n(9) Net Pension Liability of Employers and Nonemployer  PSERS \nThe components of the net pension liability of the participating employers and nonemployer at June 30, 2020 were as follows (dollars in thousands): \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployers' and nonemployer net pension liability \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \n1,134,724 958,248 176,476 \n84.45 % \n \n55 \n \n(continued) \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2019, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases Investment rate of return Cost-of-living adjustment \n \n2.75% n/a 7.30%, net of pension plan investment expense, including inflation 1.5% semi-annually \n \nPostretirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward three years for males and two years for females) for the period after service retirement and for dependent beneficiaries. The RP-2000 Disabled Mortality projected to 2025 with projection scale BB (set forward five years for both males and females) was used for death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-12% less than the actual number of deaths that occurred during the study period for service retirements and beneficiaries and for disability retirements. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \nThe actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the investment rate of return. Subsequent to the June 30, 2017 measurement date, the PSERS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the PSERS Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 actuarial valuation. The assumed investment rate of return remained at 7.30% for the June 30, 2019 actuarial valuation. \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class Fixed income Domestic large equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n \nTarget allocation 30.00 % 46.20 1.30 12.40 5.10 5.00 \n100.00 % \n \nLong-term expected real rate of return* (0.10)% 8.90 13.20 8.90 10.90 12.00 \n \n* Rates shown are net of inflation. \nDiscount rate: The discount rate used to measure the total pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments \n(continued) 56 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \nof current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \nSensitivity of the net pension liability to changes in the discount rate: The following presents the net pension liability, calculated using the discount rate of 7.30%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.30%) or 1-percentage-point higher (8.30%) than the current rate (dollars in thousands): \n \nEmployers' and nonemployer net pension liability \n \n1% Decrease \n(6.30%) \n$300,027 \n \nCurrent discount \nrate (7.30%) \n176,476 \n \n1% Increase (8.30%) \n72,356 \n \nActuarial valuation date: June 30, 2019 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2020 using standard roll-forward techniques for the actual total pension liability before and after any benefit changes, reflecting the increase in the monthly benefit accrual rate from $15.25 to $15.50 per year of creditable service. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n(10) Net Pension Liability of Employer  LRS \nThe components of the net pension liability (asset) of the participating employer at June 30, 2020 were as follows (dollars in thousands): \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployer's net pension liability (asset) \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \n26,081 34,568 (8,487) 132.54 % \n \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2019, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases Investment rate of return Cost-of-living adjustment \n \n2.75% n/a 7.30%, net of pension plan investment expense, including inflation 1.5% semi-annually \n \nPostretirement mortality rates were based on the RP-2000 Combined Mortality Table projected to 2025 with projection scale BB (set forward two years for both males and females) for the period after service retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the ERS Board on December 17, 2015, the numbers of expected future deaths are 9-12% less than the actual number of deaths that occurred during the study period for service retirements and beneficiaries and for disability retirements. The RP-2000 Employee Mortality table projected to 2025 using projection scale BB was used for deaths in active service. \n \n(continued) 57 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \nThe actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the investment rate of return. Subsequent to the June 30, 2017 measurement date, the ERS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the ERS Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 actuarial valuation. The assumed investment rate of return remained at 7.30% for the June 30, 2019 actuarial valuation. \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class Fixed income Domestic large equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n* Rates shown are net of inflation. \n \nTarget allocation 30.00 % 46.20 1.30 12.40 5.10 5.00 \n100.00 % \n \nLong-term expected real rate of return* (0.10)% 8.90 13.20 8.90 10.90 12.00 \n \nDiscount rate: The discount rate used to measure the total pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \nSensitivity of the net pension liability to changes in the discount rate: The following table presents the net pension liability (asset), calculated using the discount rate of 7.30%, as well as what the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.30%) or 1-percentage-point higher (8.30%) than the current rate (dollars in thousands): \n \nEmployers' and nonemployer net pension liability (asset) \n \n1% Decrease \n(6.30%) \n$(6,047) \n \nCurrent discount \nrate (7.30%) \n(8,487) \n \n1% Increase (8.30%) \n(10,567) \n \nActuarial valuation date: June 30, 2019 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2020 using standard roll-forward techniques. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n(continued) 58 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \n \n(11) Net Pension Liability of Employers and Nonemployer  GJRS \nThe components of the net pension liability (asset) of the participating employers and nonemployer at June 30, 2020 were as follows (dollars in thousands): \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployer's net pension liability (asset) \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \n455,656 485,930 (30,274) \n106.64 % \n \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2019, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases Investment rate of return \n \n2.75% 4.50%, including inflation 7.30%, net of pension plan investment expense, including inflation \n \nMortality rates were based on the RP-2000 Combined Mortality Table projected to 2025 with projection scale BB and set forward two years for both males and females for the period after retirement and for dependent beneficiaries. For the period after disability retirement, the RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB and set back seven years for males and set forward three years for females is used. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the GJRS Board on December 17, 2015, the numbers of expected future deaths are 9-12% less than the actual number of deaths that occurred during the study period for service retirements and beneficiaries and for disability retirements. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \nThe actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the investment rate of return. Subsequent to the June 30, 2017 measurement date, the GJRS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the GJRS Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 actuarial valuation. The assumed investment rate of return remained at 7.30% for the June 30, 2019 actuarial valuation. \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the table on the following page: \n \n(continued) 59 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \n \nAsset class Fixed income Domestic large equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n* Rates shown are net of inflation. \n \nTarget allocation 30.00 % 46.20 1.30 12.40 5.10 5.00 \n100.00 % \n \nLong-term expected real rate of return* (0.10)% 8.90 13.20 8.90 10.90 12.00 \n \nDiscount rate: The discount rate used to measure the total pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \nSensitivity of the net pension liability to changes in the discount rate: The following table presents the net pension liability (asset), calculated using the discount rate of 7.30%, as well as what the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.30%) or 1-percentage-point higher (8.30%) than the current rate (dollars in thousands): \n \nEmployers' and nonemployer net pension liability (asset) \n \n1% Decrease \n(6.30%) \n$11,449 \n \nCurrent discount \nrate (7.30%) \n(30,274) \n \n1% Increase (8.30%) \n(66,607) \n \nActuarial valuation date: June 30, 2019 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2020 using standard roll-forward techniques for the actual total pension liability both for and after reflecting two one-time 3% payments that were granted to certain retired members and beneficiaries effective July 2019 and January 2020. The difference between these two amounts is shown as a change in benefit terms. The roll forward calculation adds the annual normal cost (also called the service cost), subtracts the actual benefit payments and refunds for the plan year and then applies the expected investment rate of return for the year. \n \n(12) Net Pension Liability of Employer  GMPF \nThe components of the net pension liability of the participating employer at June 30, 2020 were as follows (dollars in thousands): \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployer's net pension liability \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \n47,883 28,967 18,916 \n60.50 % \n \n(continued) 60 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \nActuarial assumptions: The total pension liability was detemined by an actuarial valuation as of June 30, 2019, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases Investment rate of return \n \n2.75% n/a 7.30%, net of pension plan investment expense, including inflation \n \nPostretirement mortality rates were based on the RP-2000 Combined Mortality Table projected to 2025 with projection scale BB (set forward two years for both males and females) for the period after service retirement. The RP-2000 Employee Mortality Table projected to 2025 using projection scale BB was used for deaths in active service. \n \nThe actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the investment rate of return. Subsequent to the June 30, 2017 measurement date, the ERS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the ERS Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 actuarial valuation. The assumed investment rate of return remained at 7.30% for the June 30, 2019 actuarial valuation. \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class Fixed income Domestic large equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n* Rates shown are net of inflation. \n \nTarget allocation 30.00 % 46.20 1.30 12.40 5.10 5.00 \n100.00 % \n \nLong-term expected real rate of return* (0.10)% 8.90 13.20 8.90 10.90 12.00 \n \nDiscount rate: The discount rate used to measure the total pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \nSensitivity of the net pension liability to changes in the discount rate: The following table presents the net pension liability (asset), calculated using the discount rate of 7.30%, as well as what the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.30%) or 1-percentage-point higher (8.30%) than the current rate (dollars in thousands): \n \n(continued) 61 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \n \nEmployers' net pension liability \n \n1% Decrease \n(6.30%) \n$25,519 \n \nCurrent discount \nrate (7.30%) \n18,916 \n \n1% Increase (8.30%) \n13,537 \n \nActuarial valuation date: June 30, 2019 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2020 using standard roll-forward techniques. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n(13) Net OPEB Liability of Employers - SEAD-OPEB \n \nThe components of the net OPEB liability (asset) of the participating employers at June 30, 2020 were as follows (dollars in thousands): \n \nTotal OPEB liability Plan fiduciary net position \nEmployers' net OPEB liability (asset) Plan fiduciary net position as a percentage of the total OPEB liability \n \n$ \n \n972,700 \n \n1,256,718 \n \n$ \n \n(284,018) \n \n129.20 % \n \nActuarial assumptions: The total OPEB liability was determined by an actuarial valuation as of June 30, 2019, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases: \nERS GJRS LRS Investment rate of return Healthcare cost trend rate \n \n2.75% \n3.25% - 7.00% 4.50% n/a 7.30%, net of OPEB plan investment expense, including inflation n/a \n \nPostretirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward two years for both males and females for service retirements and dependent beneficiaries. There is a margin for future mortality improvement in the tables used by the plan. \nThe actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the investment rate of return. Subsequent to the June 30, 2017 measurement date, the SEAD Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the SEAD Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 actuarial valuation. The assumed investment rate of return remained at 7.30% for the June 30, 2019 actuarial valuation. \nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan \n(continued) 62 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \ninvestment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class Fixed income Domestic large equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n* Rates shown are net of inflation. \n \nTarget allocation 30.00 % 46.20 1.30 12.40 5.10 5.00 \n100.00 % \n \nLong-term expected real rate of return* (0.10)% 8.90 13.20 8.90 10.90 12.00 \n \nDiscount rate: The discount rate used to measure the total OPEB liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. \n \nSensitivity of the net OPEB liability to changes in the discount rate: The following table presents the net OPEB liability (asset), calculated using the discount rate of 7.30%, as well as what the net OPEB liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.30%) or 1-percentage-point higher (8.30%) than the current rate (dollars in thousands): \n \nEmployers' net OPEB liability (asset) \n \n1% Decrease \n(6.30%) \n$(157,545) \n \nCurrent discount \nrate (7.30%) \n(284,018) \n \n1% Increase (8.30%) \n(388,280) \n \nActuarial valuation date: June 30, 2019 is the actuarial valuation date upon which the total OPEB liability is based. An expected total OPEB liability is determined as of June 30, 2020 using standard roll-forward techniques. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n(14) System Employees' Other Postemployment Benefits (OPEB) \nCertain of the System's employees are members of the SEAD-OPEB and the Georgia State Employees Postretirement Benefit Fund. The notes to the financial statements that follow and required supplementary information on pages 81 and 82 are presented from the perspective of the System as an employer. \nGeneral Information about the SEAD-OPEB \nPlan description: SEAD-OPEB was created in 2007 by the Georgia General Assembly to amend Title 47 of the O.C.G.A., relating to retirement, so as to establish a fund for the provision of term life insurance to retired and vested inactive members of ERS, LRS, and GJRS. The plan is a cost-sharing multiple-employer defined benefit \n(continued) 63 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \nother postemployment benefit plan as defined in GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. The SEAD-OPEB trust fund accumulates the premiums received from the aforementioned retirement plans, including interest earned on deposits and investments of such payments. \nBenefits provided: The amount of insurance for a retiree with creditable service prior to April 1, 1964 is the full amount of insurance in effect on the date of retirement. The amount of insurance for a service retiree with no creditable service prior to April 1, 1964 is 70% of the amount of insurance in effect at age 60 or at termination, if earlier. Life insurance proceeds are paid in a lump sum to the beneficiary upon death of the retiree. \nContributions: Georgia law provides that employee contributions to the plan shall be in an amount established by the SEAD Board not to exceed one-half of 1% of the member's earnable compensation. There were no employer contributions required for the fiscal year ended June 30, 2020. \nOPEB Liabilities and OPEB Expense related to SEAD-OPEB \nAt June 30, 2020, the System reported an asset of $569.1 thousand for its proportionate share of the net OPEB asset. The net OPEB asset was measured as of June 30, 2019. The total OPEB asset used to calculate the net OPEB asset was based on an actuarial valuation as of June 30, 2018. An expected total OPEB asset as of June 30, 2019 was determined using standard roll-forward techniques. The System's proportionate share of the net OPEB asset was based on actual member salaries reported to the SEAD-OPEB plan during the fiscal year ended June 30, 2019. At June 30, 2019, the employer's proportionate share was 0.201267%, which was an increase of 0.001203% from its proportionate share measured as of June 30, 2018. For the year ended June 30, 2020, the System recognized a reduction of OPEB expense of $51.7 thousand. \nActuarial assumptions: The total SEAD-OPEB asset as of June 30, 2019 was determined by an actuarial valuation as of June 30, 2018 using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increase Investment rate of return Healthcare cost trend rate \n \n2.75% 3.25 - 7.00%, including inflation 7.30%, net of OPEB plan investment expense, including inflation n/a \n \nPostretirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward 2 years for both males and females for service retirements and dependent beneficiaries. There is a margin for future mortality improvement in the tables used by the plan. \nThe actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the investment rate of return. \nThe long-term expected rate of return on SEAD-OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of plan investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and estimates of arithmetic real rates of return for each major asset class are summarized in the table on the following page: \n \n(continued) 64 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \n \nAsset class \nFixed income Domestic large equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n \nTarget allocation \n30.00 % 46.20 \n1.30 12.40 \n5.10 5.00 \n100.00 % \n \nLong-term expected real rate of return* \n(0.10)% 8.90 13.20 8.90 10.90 12.00 \n \n* Rates shown are net of inflation. \nDiscount rate: The discount rate used to measure the total SEAD-OPEB liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the SEADOPEB plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on SEAD-OPEB plan investments was applied to all periods of projected benefit payments to determine the total SEAD-OPEB liability. \nSensitivity of the System's proportionate share of the net SEAD-OPEB liability to changes in the discount rate: The following presents the System's proportionate share of the net SEAD-OPEB liability (asset) calculated using the discount rate of 7.30%, as well as what the System's proportionate share of the net SEAD-OPEB liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower 6.30% or 1-percentage-point higher 8.30% than the current rate (dollars in thousands): \n \nSystem's proportionate share of the net OPEB liability (asset) \n \n1% Decrease \n(6.30%) \n$(315) \n \nCurrent discount \nrate (7.30%) \n(569) \n \n1% Increase (8.30%) \n(778) \n \nSEAD-OPEB plan fiduciary net position: Detailed information about the SEAD-OPEB plan's fiduciary net position is presented in the Combining Statement of Fiduciary Net Position on page 25 and the Combining Statement of Changes in Fiduciary Net Postion on page 27. \nGeneral Information about the Georgia State Employees Postemployment Benefit Fund (State OPEB Fund) \nPlan description: Employees of State of Georgia (State) organizations as defined in 45-18-25 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the State OPEB Fund - a cost-sharing multipleemployer defined benefit postemployment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 45 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \nBenefits provided: The State OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for employees of State organizations (including technical colleges) and other entities authorized by law to contract with the Department of Community Health (DCH) for inclusion in the plan. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from ERS, LRS, GJRS, Teachers Retirement System (TRS) or PSERS. If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare-eligible retiree plan options include Health Reimbursement Arrangement \n(continued) 65 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \n(HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The State OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the State OPEB Fund is permitted. \nContributions: As established by the DCH Board of Trustees, the State OPEB Fund is funded on a pay-as-you-go basis, with additional contributions by the State as available and deemed necessary; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the State OPEB Fund from the System were $288.3 thousand for the year ended June 30, 2020. Active employees are not required to contribute to the State OPEB Fund. \nOPEB Liabilities and OPEB Expense related to State OPEB Fund \nAt June 30, 2020, the System reported a liability of approximately $2.4 million for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2019. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2018. An expected total OPEB liability as of June 30, 2019 was determined using standard roll-forward techniques. The System's proportionate share of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2019. At June 30, 2019, the System's proportionate share was 0.189291%, which was a decrease of 0.007707% from its proportionate share measured as of June 30, 2018. For the year ended June 30, 2020, the System recognized a reduction in OPEB expense of $807.8 thousand. \nActuarial assumptions: The total OPEB liability as of June 30, 2019 was determined by an actuarial valuation as of June 30, 2018 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2019: \n \nInflation Salary increase Investment rate of return \nHealthcare trend rate: Pre-Medicare Eligible Medicare Eligible \nUltimate trend rate: Pre-Medicare Eligible Medicare Eligible \nYear of Ultimate trend rate Pre-Medicare Eligible Medicare Eligible \n \n2.75% 3.25 - 7.00%, including inflation 7.30%, compounded annually, net of OPEB plan investment expense, including inflation \n7.25% 5.38% \n4.75% 4.75% \n2028 2022 \n \nMortality rates were based on the RP-2000 Combined Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale BB. The RP-2000 Combined Mortality Table projected to 2025 with projection scale BB and set forward 2 years or both males and females is used for the period after service retirement and for dependent beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB and set back 7 years for males and set forward 3 years for females is used for the period after disability retirement. \n \nThe actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2014, and was adopted by the ERS Board on December 17, 2015. The next experience study for ERS will be for the period ending June 30, 2019. \n \n(continued) 66 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \nThe remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2018 valuation were based on a review of recent plan experience done concurrently with the June 30, 2018 valuation. \nProjection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation. \nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class \nFixed income Domestic large equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n \nTarget allocation \n30.00 % 46.20 \n1.30 12.40 \n5.10 5.00 \n100.00 % \n \nLong-term expected real rate of return* \n(0.10)% 8.90 13.20 8.90 10.90 12.00 \n \n* Rates shown are net of inflation. \nDiscount rate: The discount rate has changed since the prior measurement date from 5.22% to 7.30%. In order to measure the total OPEB liability for the State OPEB Fund, a single equivalent interest rate of 7.30% was used as the discount rate. The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2120. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be available to make OPEB payments for inactive employees indefinitely. Therefore, the calculated discount rate of 7.30% was applied to all periods of projected benefit payments to determine the total OPEB liability. \nSensitivity of the System's proportionate share of the net State OPEB liability to changes in the discount rate: The following presents the System's proportionate share of the net OPEB liability calculated using the discount rate of 7.30%, as well as what the System's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.30%) or 1-percentage-point higher (8.30%) than the current discount rate (dollars in thousands): \n \nSystem's proportionate share of the net OPEB liability \n \n1% Decrease \n(6.30%) \n$2,909 \n \nCurrent discount \nrate (7.30%) \n2,350 \n \n1% Increase (8.30%) \n1,874 \n \n(continued) 67 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \nSensitivity of the System's proportionate share of the net State OPEB liability to changes in the healthcare cost trend rates: The following presents the System's proportionate share of the net OPEB liability, as well as what the System's proportionate share of the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates (dollars in thousands): \n \nSystem's proportionate share of the net OPEB liability \n \n1% Decrease \n$1,806 \n \nCurrent healthcare cost trend \nrate \n2,350 \n \n1% Increase \n2,995 \n \nState OPEB plan fiduciary net position: Detailed information about the State OPEB Benefit plan's fiduciary net position is available in the Comprehensive Annual Financial Report (CAFR) which is publicly available at https:// sao.georgia.gov/comprehensive-annual-financial-reports. \nDeferred Outflows of Resources and Deferred Inflows of Resources for SEAD-OPEB and State OPEB Fund \nAt June 30, 2020, the System reported deferred outflows of resources and deferred inflows of resources related to SEAD-OPEB and the State OPEB Fund from the following sources (dollars in thousands): \n \nDeferred outflows of resources: Difference between expected and actual experience Change of assumptions Net difference between projected and actual earnings \non plan investments Change in proportion and differences between the \nSystem's contributions and proportionate share of contributions System's contributions subsequent to the measurement date \nTotal deferred outflows of resources \n \nSEAD-OPEB State OPEB \n \nplan \n \nfund \n \n$ \n \n3 \n \n-- \n \n12 \n \n-- \n \n-- \n \n158 \n \n-- \n \n220 \n \n-- \n \n288 \n \n$ \n \n15 \n \n666 \n \nTotal \n3 12 158 \n220 288 681 \n \nDeferred inflows of resources: Difference between expected and actual experience Change of assumptions Net difference between projected and actual earnings \non plan investments Change in proportion and differences between the \nSystem's contributions and proportionate share of contributions \nTotal deferred inflows of resources \n \nSEAD-OPEB State OPEB \n \nplan \n \nfund \n \n$ \n \n-- \n \n-- \n \n52 \n \n815 2,193 \n-- \n \n6 \n \n$ \n \n58 \n \n128 3,136 \n \nTotal \n815 2,193 \n52 \n134 3,194 \n \n(continued) 68 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2020 \n \nSEAD-OPEB amounts reported as deferred outflows of resources and deferred inflows of resources related to SEAD-OPEB will be recognized in OPEB expense as follows (dollars in thousands): \n \nYear ended June 30: 2021 2022 2023 2024 \n \n($16) (25) (5) 3 \n \nState OPEB Fund employer contributions subsequent to the measurement date of $288.3 thousand are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to State OPEB Fund will be recognized in OPEB expense as follows (dollars in thousands): \n \nYear ended June 30: 2021 2022 2023 2024 \n \n($1,110) (981) (553) (114) \n \n69 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) \nSchedules of Employers' and Nonemployer Contributions - Defined Benefit Plans Year ended June 30, 2020 (In thousands) \n \nEmployees' Retirement System \nPublic School Employees Retirement System1 \nLegislative Retirement System2 \n \nYear ended \n6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 \n6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 \n6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 \n \nActuarially determined contribution \n(a) \n \n$ \n \n261,132 \n \n273,623 \n \n358,376 \n \n428,982 \n \n517,220 \n \n595,124 \n \n624,623 \n \n650,073 \n \n649,209 \n \n643,857 \n \n7,509 15,884 24,829 27,160 28,461 28,580 26,277 29,276 30,263 32,496 \n \n-- -- -- -- -- -- -- -- -- -- \n \nContributions in relation to the actuarially determined contribution \n(b) \n261,132 274,034 358,992 429,752 518,163 595,566 625,281 652,167 649,209 643,857 \n7,509 15,884 24,829 27,160 28,461 28,580 26,277 29,276 30,263 32,496 \n75 76 128 45 -- -- -- -- -- -- \n \nContribution deficiency (excess) (a-b) \n-- (411) (616) (770) (943) (442) (658) (2,094) \n-- -- \n-- -- -- -- -- -- -- -- -- -- \n(75) (76) (128) (45) \n-- -- -- -- -- -- \n \nCovered payroll \n(c) \n2,486,780 2,414,884 2,335,773 2,335,773 2,353,225 2,390,457 2,565,918 2,635,896 2,615,491 2,614,856 \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n3,780 3,815 3,867 3,850 3,764 3,875 3,830 3,844 3,833 3,798 \n \nContributions as a \npercentage of covered \npayroll (b/c) \n10.5 % 11.3 15.4 18.4 22.0 24.9 24.4 24.7 24.8 24.6 \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n2.0 2.0 3.3 1.2 n/a n/a n/a n/a n/a n/a \n \n(continued) 70 \n \n Financial Section \n \nRequired Supplementary Information (UNAUDITED) \n \nSchedules of Employers' and Nonemployer Contributions - Defined Benefit Plans Year ended June 30, 2020 (In thousands) \n \nGeorgia Judicial Retirement System \nGeorgia Military Pension Fund3 \nState Employees' Assurance Department Retired and Vested Inactive Members Trust Fund \n \nYear ended \n6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 \n6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 \n6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 \n \nActuarially determined contribution \n(a) \n \n$ \n \n1,932 \n \n2,083 \n \n2,279 \n \n2,375 \n \n4,261 \n \n7,623 \n \n6,684 \n \n6,566 \n \n5,254 \n \n6,464 \n \n1,282 1,521 1,703 1,892 1,893 1,990 2,018 2,377 2,537 2,611 \n \n-- 12,724 \n5,009 -- -- -- -- -- -- -- \n \nContributions in relation to the actuarially determined contribution \n(b) \n1,932 2,083 2,279 2,375 4,261 7,623 6,684 6,566 5,254 6,464 \n1,282 1,521 1,703 1,892 1,893 1,990 2,018 2,377 2,537 2,611 \n-- 12,724 \n5,009 -- -- -- -- -- -- -- \n \nContribution deficiency (excess) (a-b) \n-- -- -- -- -- -- -- -- -- -- \n-- -- -- -- -- -- -- -- -- -- \n-- -- -- -- -- -- -- -- -- -- \n \nCovered payroll \n(c) \n52,331 51,898 52,807 54,787 54,272 57,401 59,695 60,572 60,532 63,835 \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \nn/a 2,085,902 1,855,185 \nn/a n/a n/a n/a n/a n/a n/a \n \nContributions as a \npercentage of covered \npayroll (b/c) \n3.7 % 4.0 4.3 4.3 7.9 13.3 11.2 10.8 8.7 10.1 \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \nn/a 0.6 0.3 n/a n/a n/a n/a n/a n/a n/a \n \nThis data, except for annual covered payroll, was provided by the System's actuary. \n1 No statistics regarding covered payroll are available. Contributions are not based upon members' salaries but are simply $4.00 per member, per month, for nine months, each fiscal year if hired prior to July 1, 2012 and $10 per month, per member, for nine months, if hired after July 1,2012. 2 The Georgia General Assembly made contributions in some years that were not required. 3 No statistics regarding covered payroll are available. Active and inactive plan member information is maintained by the Georgia Department of Defense. \nSee accompanying notes to required supplementary schedules and accompanying independent auditors' report. \n \n71 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) \nSchedules of Employers' and Nonemployer Net Pension/OPEB Liability and Related Ratios  Defined Benefit Plans June 30, 2020 (In thousands) \nJune 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 \n \nEmployees' Retirement System: Total pension liability Plan fiduciary net position \nEmployers' and nonemployer net pension liability \nPlan fiduciary net position as a percentage of the total pension liability Covered payroll Employers' and nonemployer net pension liability as a percentage of \ncovered payroll \n \n$ 17,717,243 13,502,286 \n$ 4,214,957 76.21 % \n$ 2,614,856 \n161.19 % \n \n17,744,003 13,617,472 \n4,126,531 76.74 % \n2,615,491 \n157.77 % \n \n17,628,219 13,517,186 \n4,111,033 76.68 % \n2,635,896 \n155.96 % \n \n17,159,634 13,098,299 \n4,061,335 76.33 % \n2,565,918 \n158.28 % \n \n17,103,987 12,373,567 \n4,730,420 72.34 % \n2,390,457 \n197.89 % \n \n17,019,362 12,967,964 \n4,051,398 76.20 % \n2,353,225 \n172.16 % \n \n17,042,149 13,291,531 \n3,750,618 77.99 % \n2,335,773 \n160.57 % \n \nPublic School Employees Retirement System: \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployers' and nonemployer net pension liability \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability Covered payroll \n \nEmployers' and nonemployer net pension liability as a percentage of covered payroll \n \n1,134,724 958,248 176,476 84.45 % n/a \nn/a \n \n1,107,495 941,587 165,908 85.02 % n/a \nn/a \n \n1,072,165 914,138 158,027 85.26 % n/a \nn/a \n \n1,013,163 868,134 145,029 85.69 % n/a \nn/a \n \n992,292 803,775 188,517 \n81.00 % n/a \nn/a \n \n946,200 823,150 123,050 \n87.00 % n/a \nn/a \n \n930,745 821,733 109,012 \n88.29 % n/a \nn/a \n \nLegislative Retirement System: \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployer's net pension asset \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability Covered payroll \nEmployer's net pension asset as a percentage of covered payroll \n \n26,081 34,568 (8,487) 132.54 % \n3,798 \n(223.46)% \n \n26,166 34,540 (8,374) 132.00 % \nn/a \nn/a \n \n26,304 34,189 (7,885) 129.98 % \nn/a \nn/a \n \n25,898 32,981 (7,083) 127.35 % \nn/a \nn/a \n \n26,142 30,975 (4,833) 118.49 % \nn/a \nn/a \n \n25,271 32,359 (7,088) 128.05 % \nn/a \nn/a \n \n25,216 32,794 (7,578) 130.05 % \nn/a \nn/a \n \nGeorgia Judicial Retirement System: \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployers' and nonemployer net pension asset \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \nCovered payroll \n \n$ \n \nEmployers' and nonemployer net pension asset as a percentage of covered payroll \n \n455,656 485,930 (30,274) \n106.64 % 63,835 \n47.43 % \n \n440,041 479,372 (39,331) \n108.94 % 60,532 \n64.98 % \n \n428,624 466,657 (38,033) \n108.87 % 60,572 \n62.79 % \n \n394,736 441,182 (46,446) \n111.77 % 59,695 \n77.81 % \n \n368,669 403,011 (34,342) \n109.32 % 57,401 \n59.83 % \n \n357,081 404,852 (47,771) \n113.38 % 54,272 \n88.02 % \n \n350,443 400,790 (50,347) \n114.37 % 54,787 \n91.90 % \n \n(continued) 72 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) \nSchedules of Employers' and Nonemployer Net Pension/OPEB Liability and Related Ratios  Defined Benefit Plans June 30, 2020 (In thousands) \n \nJune 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 \n \nGeorgia Military Pension Fund: \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployers' net pension liability \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability Covered payroll \n \nEmployers' net pension liability as a percentage of covered payroll \n \n47,883 28,967 18,916 \n60.50 % n/a \nn/a \n \n45,639 26,417 19,222 \n57.88 % n/a \nn/a \n \n43,204 23,653 19,551 \n54.75 % n/a \nn/a \n \n40,085 20,711 19,374 \n51.67 % n/a \nn/a \n \n36,950 17,717 19,233 \n47.95 % n/a \nn/a \n \n33,343 16,712 16,631 \n50.12 % n/a \nn/a \n \n31,511 15,251 16,260 \n48.40 % n/a \nn/a \n \nState Employees' Assurance Department - Retired and Vested Inactive Members Trust Fund: \nTotal pension liability Plan fiduciary net position \nEmployer's net OPEB asset \nPlan fiduciary net position as a percentage of the total OPEB liability Covered payroll \nEmployers' net OPEB asset as a percentage of covered payroll \n \n$ \n \n972,700 \n \n1,256,718 \n \n$ \n \n(284,018) \n \n129.20 % $ 1,135,433 \n \n25.01 % \n \n951,091 1,233,856 (282,765) \n129.73 % 1,211,274 \n23.34 % \n \n918,816 1,189,462 (270,646) \n129.46 % 1,328,485 \n20.37 % \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n861,346 1,121,251 \n(259,905) 130.17 % \n1,383,860 \n18.78 % \n \n-- -- -- -- % -- \n-- \n \n-- -- -- -- % -- \n-- \n \n-- -- -- -- % -- \n-- \n \n73 \n \n Financial Section \n \nRequired Supplementary Information (UNAUDITED) Schedules of Changes in Employers' and Nonemployer Net Pension/OPEB Liability  Defined Benefit Plans \nJune 30, 2020 (In thousands) \nJune 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 \n \nEmployee's Retirement System: Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions \nNet change in total pension liability Total pension liability-beginning \nTotal pension liability-end (a) \nPlan fiduciary net position: Contributions-employer Contributions-nonemployer Contributions-member Administrative expense allotment Net investment income Benefit payments Administrative expense Refunds of contributions Other1 \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \nPlan fiduciary net position-end (b) \nNet pension liability-end (a)-(b) \n \n$ \n \n132,004 \n \n1,240,887 \n \n65,702 \n \n25,736 \n \n-- \n \n(1,484,445) \n \n(6,644) \n \n(26,760) 17,744,003 \n \n17,717,243 \n \n634,108 9,749 \n35,837 10 \n703,840 (1,484,445) \n(7,641) (6,644) \n-- \n(115,186) 13,617,472 \n13,502,286 \n$ 4,214,957 \n \n135,679 1,233,882 \n42,097 155,573 \n-- (1,443,756) \n(7,691) \n115,784 17,628,219 \n17,744,003 \n638,989 10,220 36,252 10 \n873,404 (1,443,756) \n(7,142) (7,691) \n-- \n100,286 13,517,186 \n13,617,472 \n4,126,531 \n \n129,294 1,233,689 \n31,097 180,655 314,733 (1,413,298) \n(7,585) \n468,585 17,159,634 \n17,628,219 \n639,302 12,865 37,130 10 \n1,166,013 (1,413,298) \n(8,056) (7,585) (7,494) \n418,887 13,098,299 \n13,517,186 \n4,111,033 \n \n125,910 1,230,175 \n30,563 72,315 \n-- (1,394,283) \n(9,033) \n55,647 17,103,987 \n17,159,634 \n613,201 12,080 35,863 10 \n1,475,626 (1,394,283) \n(8,732) (9,033) \n-- \n724,732 12,373,567 \n13,098,299 \n4,061,335 \n \n143,043 1,225,650 \n-- (238) 70,890 (1,347,633) (7,087) \n84,625 17,019,362 \n17,103,987 \n583,082 12,484 31,961 10 \n141,292 (1,347,633) \n(8,506) (7,087) \n-- \n(594,397) 12,967,964 \n12,373,567 \n4,730,420 \n \n145,045 1,227,846 \n-- (53,950) \n-- (1,334,278) \n(7,450) \n(22,787) 17,042,149 \n17,019,362 \n505,668 12,495 33,713 10 \n474,147 (1,334,278) \n(7,872) (7,450) \n-- \n(323,567) 13,291,531 \n12,967,964 \n4,051,398 \n \n150,075 1,224,380 \n-- -- -- (1,305,998) (8,757) \n59,700 16,982,449 \n17,042,149 \n418,807 10,945 32,423 -- \n2,021,748 (1,305,998) \n(7,440) (8,757) \n-- \n1,161,728 12,129,803 \n13,291,531 \n3,750,618 \n \n1 The System is a participating employer in the Georgia State Employees Postemployment Benefit Fund and the State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund. Pursuant to the requirements of GASB Statement No. 75, the fiscal year 2018 beginning Fiduciary Net Position was restated by $7,494,507. The restatement of net position was made for reporting purposes to reflect the impact of recording the initial deferred outflows of resources, net OPEB liability, and net OPEB asset. For actuarial purposes, this adjustment iwas recognized in fiscal year 2018 and beginning fiduciary net position was not restated. \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. \nSee accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n(continued) 74 \n \n Financial Section \n \nRequired Supplementary Information (UNAUDITED) Schedules of Changes in Employers' and Nonemployer Net Pension/OPEB Liability  Defined Benefit Plans \nJune 30, 2020 (In thousands) \nJune 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 \n \nPublic School Employees Retirement System: Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions \nNet change in total pension liability Total pension liability-beginning \nTotal pension liability-end (a) \nPlan fiduciary net position: Contributions-employer Contributions-member Net investment income Benefit payments Administrative expense Refunds of contributions \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \nPlan fiduciary net position-end (b) \nNet pension liability-end (a)-(b) \n \n$ \n \n14,017 \n \n78,414 \n \n13,680 \n \n(12,220) \n \n-- \n \n(66,090) \n \n(572) \n \n27,229 1,107,495 \n \n1,134,724 \n \n32,496 2,338 \n49,913 (66,090) \n(1,424) (572) \n \n16,661 941,587 \n \n958,248 \n \n$ \n \n176,476 \n \n13,762 75,923 18,050 (8,159) \n-- (63,637) \n(609) \n35,330 1,072,165 \n1,107,495 \n30,263 2,256 \n60,553 (63,637) \n(1,377) (609) \n27,449 914,138 \n941,587 \n165,908 \n \n13,180 73,643 17,289 (3,943) 21,354 (61,820) \n(701) \n59,002 1,013,163 \n1,072,165 \n29,276 2,162 \n78,418 (61,820) \n(1,331) (701) \n46,004 868,134 \n914,138 \n158,027 \n \n12,788 72,157 \n-- (3,665) \n-- (59,378) \n(1,031) \n20,871 992,292 \n1,013,163 \n26,277 2,084 \n97,715 (59,378) \n(1,308) (1,031) \n64,359 803,775 \n868,134 \n145,029 \n \n11,952 68,776 \n-- (9,483) 33,215 (57,903) \n(465) \n46,092 946,200 \n992,292 \n28,580 1,925 9,809 \n(57,903) (1,321) (465) \n(19,375) 823,150 \n803,775 \n188,517 \n \n12,088 67,652 \n-- (6,858) \n-- (56,972) \n(455) \n15,455 930,745 \n946,200 \n28,461 1,800 \n30,129 (56,972) \n(1,545) (456) \n1,417 821,733 \n823,150 \n123,050 \n \n11,049 66,143 \n-- -- -- (56,189) (514) \n20,489 910,256 \n930,745 \n27,160 1,659 \n123,799 (56,189) \n(1,450) (514) \n94,465 727,268 \n821,733 \n109,012 \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n(continued) 75 \n \n Financial Section \n \nRequired Supplementary Information (UNAUDITED) Schedules of Changes in Employers' and Nonemployer Net Pension/OPEB Liability  Defined Benefit Plans \nJune 30, 2020 (In thousands) \nJune 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 \n \nLegislative Retirement System: \n \nTotal pension liability: \n \nService cost \n \n$ \n \nInterest \n \nBenefit changes \n \nDifferences between expected and actual experience \n \nChanges of assumptions \n \nBenefit payments \n \nRefunds of contributions \n \nNet change in total pension liability Total pension liability-beginning \n \nTotal pension liability-end (a) \n \nPlan fiduciary net position: Contributions-employer Contributions-member Net investment income Benefit payments Administrative expense Refunds of contributions \n \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \n \nPlan fiduciary net position-end (b) \n \nNet pension asset-end (a)-(b) \n \n$ \n \n372 1,844 \n-- (485) \n-- (1,795) \n(21) \n(85) 26,166 \n26,081 \n-- 325 1,824 (1,795) (305) (21) \n28 34,540 \n34,568 \n(8,487) \n \n366 1,850 \n-- (428) \n-- (1,856) \n(70) \n(138) 26,304 \n26,166 \n-- 339 2,228 (1,856) (290) (70) \n351 34,189 \n34,540 \n(8,374) \n \n359 1,875 \n-- (481) 447 (1,772) \n(22) \n406 25,898 \n26,304 \n-- 323 2,962 (1,772) (283) (22) \n1,208 32,981 \n34,189 \n(7,885) \n \n357 1,892 \n-- (655) \n-- (1,763) \n(75) \n(244) 26,142 \n25,898 \n-- 327 3,741 (1,763) (224) (75) \n2,006 30,975 \n32,981 \n(7,083) \n \n331 1,829 \n-- (465) 938 (1,724) \n(38) \n871 25,271 \n26,142 \n-- 328 363 (1,724) (313) (38) \n(1,384) 32,359 \n30,975 \n(4,833) \n \n338 1,824 \n-- (325) \n-- (1,756) \n(26) \n55 25,216 \n25,271 \n-- 327 1,189 (1,756) (169) (26) \n(435) 32,794 \n32,359 \n(7,088) \n \n344 1,799 \n-- -- -- (1,801) (30) \n312 24,904 \n25,216 \n45 282 4,969 (1,801) (152) (30) \n3,313 29,481 \n32,794 \n(7,578) \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n(continued) 76 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) Schedules of Changes in Employers' and Nonemployer Net Pension/OPEB Liability  Defined Benefit Plans \nJune 30, 2020 (In thousands) \n \nJune 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 \n \nGeorgia Judicial Retirement System: \n \nTotal pension liability: \n \nService cost \n \n$ \n \nInterest \n \nBenefit changes \n \nDifferences between expected and actual experience \n \nChanges of assumptions \n \nBenefit payments \n \nRefunds of contributions \n \nNet change in total pension liability Total pension liability-beginning \n \nTotal pension liability-end (a) \n \nPlan fiduciary net position: Contributions-employer Contributions-nonemployer Contributions-member Net investment income Benefit payments Administrative expense Refunds of contributions \n \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \n \nPlan fiduciary net position-end (b) \n \nNet pension asset-end (a)-(b) \n \n$ \n \n13,375 31,047 \n693 (24) -- (29,263) (213) \n15,615 440,041 \n455,656 \n4,022 2,442 5,005 25,414 (29,263) (849) (213) \n6,558 479,372 \n485,930 \n(30,274) \n \n13,350 30,267 \n1,065 (5,250) \n-- (27,462) \n(553) \n11,417 428,624 \n440,041 \n3,117 2,137 5,469 30,827 (27,462) (820) (553) \n12,715 466,657 \n479,372 \n(39,331) \n \n13,019 28,666 \n3,442 6,379 7,466 (24,934) (150) \n33,888 394,736 \n428,624 \n4,725 1,841 4,910 39,877 (24,934) (794) (150) \n25,475 441,182 \n466,657 \n(38,033) \n \n12,514 26,826 \n3,419 5,258 \n-- (21,784) \n(166) \n26,067 368,669 \n394,736 \n4,081 2,603 4,906 49,259 (21,784) (728) (166) \n38,171 403,011 \n441,182 \n(46,446) \n \n12,713 26,058 \n-- (3,603) (4,308) (19,011) \n(261) \n11,588 357,081 \n368,669 \n4,754 2,869 5,507 5,055 (19,011) (754) (261) \n(1,841) 404,852 \n403,011 \n(34,342) \n \n7,751 25,566 \n-- (7,542) \n-- (18,365) \n(772) \n6,638 350,443 \n357,081 \n2,696 1,564 5,061 14,697 (18,365) (819) (772) \n4,062 400,790 \n404,852 \n(47,771) \n \n7,584 24,530 \n-- -- -- (17,441) (22) \n14,651 335,792 \n350,443 \n1,373 1,002 4,731 60,012 (17,441) (754) \n(22) \n48,901 351,889 \n400,790 \n(50,347) \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n(continued) 77 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) Schedules of Changes in Employers' and Nonemployer Net Pension/OPEB Liability  Defined Benefit Plans \nJune 30, 2020 (In thousands) \n \nJune 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 \n \nGeorgia Military Pension Fund: \n \nTotal pension liability: \n \nService cost \n \n$ \n \nInterest \n \nBenefit changes \n \nDifferences between expected and actual experience \n \nChanges of assumptions \n \nBenefit payments \n \nRefunds of contributions \n \nNet change in total pension liability Total pension liability-beginning \n \nTotal pension liability-end (a) \n \nPlan fiduciary net position: Contributions-employer Contributions-member Net investment income Benefit payments Administrative expense Refunds of contributions Other \n \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \n \nPlan fiduciary net position-end (b) \n \nNet pension liability-end (a)-(b) \n \n$ \n \n95 3,284 \n-- 162 \n-- (1,297) \n-- \n2,244 45,639 \n47,883 \n2,611 -- \n1,485 (1,297) \n(249) -- -- \n2,550 26,417 \n28,967 \n18,916 \n \n97 3,109 \n-- 449 \n-- (1,220) \n-- \n2,435 43,204 \n45,639 \n2,537 -- \n1,683 (1,220) \n(236) -- -- \n2,764 23,653 \n26,417 \n19,222 \n \n84 2,964 \n-- 116 1,093 (1,138) \n-- \n3,119 40,085 \n43,204 \n2,377 -- \n1,928 (1,138) \n(225) -- -- \n2,942 20,711 \n23,653 \n19,551 \n \n89 2,732 \n-- 1,356 \n-- (1,042) \n-- \n3,135 36,950 \n40,085 \n2,018 -- \n2,262 (1,042) \n(244) -- -- \n2,994 17,717 \n20,711 \n19,374 \n \n73 2,465 \n-- 950 1,082 (963) \n-- \n3,607 33,343 \n36,950 \n1,990 -- \n240 (963) (262) \n-- -- \n1,005 16,712 \n17,717 \n19,233 \n \n73 2,330 \n-- 326 \n-- (897) \n-- \n1,832 31,511 \n33,343 \n1,893 -- \n585 (896) (121) \n-- -- \n1,461 15,251 \n16,712 \n16,631 \n \n73 2,223 \n-- -- -- (841) -- \n1,455 30,056 \n31,511 \n1,892 -- \n2,179 (841) (110) \n-- -- \n3,120 12,131 \n15,251 \n16,260 \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n(continued) 78 \n \n Financial Section \n \nRequired Supplementary Information (UNAUDITED) \nSchedules of Changes in Employers' and Nonemployer Net Pension/OPEB Liability  Defined Benefit Plans June 30, 2020 (In thousands) \n \nJune 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 \n \nStatement Employees' Assurance Department Retired and Vested Inactive Members Trust Fund: \n \nTotal OPEB Liability: \n \nService cost \n \n$ \n \nInterest \n \nBenefit changes \n \nDifferences between expected and actual experience \n \nChanges of assumptions \n \nBenefit payments \n \nRefunds of contributions \n \nNet change in total OPEB liability Total OPEB liability-beginning \n \nTotal OPEB liability-end \n \nPlan fiduciary net position: Contributions - employer Insurance premiums - member Net investment income Benefit payments Administrative expense Refunds of contributions Other \n \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \n \nPlan fiduciary net position-end (b) \n \nNet OPEB asset-end (a)-(b) \n \n$ \n \n3,237 67,796 \n-- (4,670) \n-- (44,754) \n-- \n21,609 951,091 \n972,700 \n-- 3,088 65,248 (44,754) (720) \n-- -- \n22,862 1,233,856 \n1,256,718 \n(284,018) \n \n3,617 65,708 \n-- 366 \n-- (37,416) \n-- \n32,275 918,816 \n951,091 \n-- 3,328 79,193 (37,416) (716) \n-- 5 \n44,394 1,189,462 \n1,233,856 \n(282,765) \n \n3,695 63,242 \n-- 4,697 22,085 (36,249) \n-- \n57,470 861,346 \n918,816 \n-- 3,599 101,542 (36,249) (681) \n-- -- \n68,211 1,121,251 \n1,189,462 \n(270,646) \n \n3,959 61,076 \n-- -- -- (36,058) -- \n28,977 832,369 \n861,346 \n1 3,793 125,550 (36,058) (576) \n-- -- \n92,710 1,028,541 \n1,121,251 \n(259,905) \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n79 \n \n Financial Section \n \nRequired Supplementary Information (UNAUDITED) \nSchedule of Investment Returns Year ended June 30, 2020 \n \nPooled Investment Fund: \nAnnual money-weighted rate of return, net of investment expense \n \n2020 \n \n2019 \n \n2018 \n \n(3.6)% (1.8)% \n \n0.6% \n \nSchedule is intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n2017 2.9% \n \n2016 \n \n2015 \n \n2014 \n \n(7.2)% (5.3)% \n \n6.0% \n \n80 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) Schedules of the System's Proportionate Share of the Net OPEB Liability \nYear ended June 30, 2020 (In thousands) \n \nJune 30, 2020 \n \nJune 30, 2019 June 30, 2018 \n \nSEAD-OPEB: \n \nSystem's proportion of the net OPEB asset \n \nSystem's proportionate share of the net OPEB asset \n \n$ \n \nSystem's covered payroll \n \nSystem's proportionate share of the net OPEB asset as a percentage of its covered payroll \n \nPlan fiduciary net position as a percentage of the total OPEB asset \n \n0.201267 % (569) $ \n2,567 \n(22.17) % 129.73 % \n \n0.200064 % \n \n(541) $ \n \n2,770 \n \n$ \n \n(19.55) % 129.46 % \n \n0.192864 % (501) \n2,809 \n(17.85) % 130.17 % \n \nState OPEB Fund: \n \nSystem's proportion of the net OPEB liability \n \nSystem's proportionate share of the net OPEB liability \n \n$ \n \nSystem's covered payroll \n \nSystem's proportionate share of the net OPEB liability as a percentage of its covered payroll \n \nSystem's fiduciary net position as a percentage of the total OPEB liability \n \n0.189291 % \n \n2,350 \n \n$ \n \n5,578 \n \n42.13 % \n \n56.57 % \n \n0.181584 % \n \n4,749 \n \n$ \n \n5,415 \n \n$ \n \n87.71 % \n \n31.48 % \n \n0.185830 % 7,571 5,265 \n143.81 % \n17.34 % \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedules and accompanying independent auditors' report. \n \n81 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) Schedules of the System's Contributions to OPEB Plans \nYear ended June 30, 2020 (In thousands) \n \nJune 30, 2020 June 30, 2019 June 30, 2018 \n \nSEAD-OPEB: Contractually required contribution* Contributions in relation to the contractually required contribution Contribution deficiency (excess) \nSystem's covered payroll Contributions as a percentage of a covered payroll \n \n$ \n \n-- \n \n$ \n \n-- \n \n$ \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n2,524 \n \n2,567 \n \n2,770 \n \n-- % \n \n-- % \n \n-- % \n \nState OPEB Fund: Contractually required contribution Contributions in relation to the contractually required contribution Contribution deficiency (excess) \nSystem's covered payroll Contributions as a percentage of a covered payroll \n \n$ \n \n288 \n \n$ 1,012 \n \n$ \n \n905 \n \n288 \n \n1,012 \n \n905 \n \n-- \n \n-- \n \n-- \n \n5,716 \n \n5,578 \n \n5,415 \n \n5.04 % \n \n18.15 % \n \n16.71 % \n \n*Employer contributions are not currently required for the SEAD-OPEB plan. Schedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedules and accompanying independent auditors' report. \n \n82 \n \n Financial Section \nNotes to Required Supplementary Information (UNAUDITED) \nJune 30, 2020 \nRequired Supplementary Information Schedules for the System as the Plan: \n(1) Schedule of Employers' and Nonemployer Contributions  Defined Benefit Plans \nThis schedule presents the required contributions and the percent of required contributions actually contributed. \n(2) Schedule of Employers' and Nonemployer Net Pension/OPEB Liability and Related Ratios  Defined Benefit Plans \nThe components of the net pension/OPEB liability as of the fiscal year end and the fiduciary net position as a percentage of the total pension/OPEB liability as of that date are presented in this schedule. This trend information will be accumulated to display a 10-year presentation. \n(3) Schedule of Changes in Employers' and Nonemployer Net Pension/OPEB Liability  Defined Benefit Plans \nNet pension/OPEB liability, which is measured as total pension/OPEB liability less the amount of the fiduciary net position, is presented in this schedule. This trend information will be accumulated to display a 10-year presentation. \n(4) Schedule of Investment Returns \nThis schedule presents historical trend information about the annual money-weighted rate of return on plan investments, net of plan investment expense. This trend information will be accumulated to display a 10-year presentation. (5) Individual Plan Information \nThis note provides information about changes of benefit terms, changes of assumptions, and methods and assumptions used in calculations of actuarially determined contributions. \n(a) Employees' Retirement System \nChanges of benefit terms   A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2016.  A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2017.  Two one-time 2% payments were granted to certain retirees and beneficiaries effective July 2018 and January 2019.  Two one-time 3% payments were granted to certain retirees and beneficiaries effective July 2019 and January 2020. \nChanges of assumptions  On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, withdrawal, and salary increases. Subsequent to the June 30, 2017 measurement date, the ERS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the ERS Board's new funding policy, the assumed investment rate of return was reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date, and remained unchanged for June 30, 2019. \n(continued) 83 \n \n Financial Section \nNotes to Required Supplementary Information (UNAUDITED) \nJune 30, 2020 \n(b) Public School Employees' Retirement System \nChanges of benefit terms  \n The member contribution rate was increased from $4 to $10 per month for members joining the System on or after July 1, 2012. \n A 2% COLA was granted to certain retirees and beneficiaries effective July 2016.  The monthly benefit accrual rate was increased from $14.75 to $15.00 per year of creditable service \neffective July 1, 2017.  A 2% COLA was granted to certain retirees and beneficiaries effective July 2017.  The monthly benefit accrual rate was increased from $15.00 to $15.25 per year of creditable service \neffective July 1, 2018.  A 2% COLA was granted to certain retirees and beneficiaries effective July 2018.  The monthly benefit accrual rate was increased from $15.25 to $15.50 per year of creditable service \neffective July 1, 2019.  Two 1.5% COLAs were granted to certain retirees and beneficiaries effective July 2019 and January \n2020. \nChanges of assumptions  On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, withdrawal, and salary increases. Subsequent to the June 30, 2017 measurement date, the PSERS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the PSERS Board's new funding policy, the assumed investment rate of return was reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date, and remained unchanged for June 30, 2019. \n(c) Legislative Retirement System \nChanges of benefit terms  \n Two one-time 3% payments were granted to certain retirees and beneficiaries effective July 2019 and January 2020. \nChanges of assumptions  On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, withdrawal, and salary increases. Subsequent to the June 30, 2017 measurement date, the LRS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the LRS Board's new funding policy, the assumed investment rate of return was reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date, and remained unchanged for June 30, 2019. \n(d) Georgia Judicial Retirement System \nChanges of benefit terms  \n Spouses' benefits were changed for members joining the System on and after July 1, 2012.  A 2% cost-of-living adjustment was granted to certain retired members and beneficiaries effective \nJuly 1, 2016.  A 2% cost-of-living adjustment was granted to certain retired members and beneficiaries effective \nJuly 1, 2017. \n(continued) 84 \n \n Financial Section \nNotes to Required Supplementary Information (UNAUDITED) \nJune 30, 2020 \n Two one-time 2% payments were granted to certain retired members and beneficiaries effective July 2018 and January 2019. \n Two one-time 3% payments were granted to certain retired members and beneficiaries effective July 2019 and January 2020. \nChanges of assumptions  On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, withdrawal, and salary increases. Subsequent to the June 30, 2017 measurement date, the GJRS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation.In addition, based on the GJRS Board's new funding policy, the assumed investment rate of return was reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date, and remained unchanged for June 30, 2019. \n(e) Georgia Military Pension Fund \nChanges of benefit terms  none \nChanges of assumptions  On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, withdrawal, and salary increases. Subsequent to the June 30, 2017 measurement date, the GMPF Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the GMPF Board's new funding policy, the assumed investment rate of return was reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date, and remained unchanged for June 30, 2019. \n(f) State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEADOPEB) as a plan \nChanges of benefit terms  none \nChanges of assumptions  Subsequent to the June 30, 2017 measurement date, the SEAD Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the SEAD Board's new funding policy, the assumed investment rate of return was reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date, and remained unchanged for June 30, 2019. \n(continued) 85 \n \n Financial Section \nNotes to Required Supplementary Information (UNAUDITED) \nJune 30, 2020 \nThe following actuarial methods and assumptions were used to determine the most recent contribution rates reported in the schedules of employer and nonemployer contributions calculated as of June 30, three years prior to the end of the first calendar year in which contributions are reported: \n \nActuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases Investment rate of return \nCost of living adjustments \n \nERS \nEntry age Level dollar, closed 16.5 years Five-year smoothed fair 2.75% 3.25 to 7.00% 7.50% net of pension plan investment expense, including inflation None \n \nPSERS \nEntry age Level dollar, closed 21.2 years Five-year smoothed fair 2.75% n/a 7.50% net of pension plan investment expense, including inflation 1.50% Semi-annually \n \nLRS \nEntry age Level dollar, open Infinite Five-year smoothed fair 2.75% n/a 7.50% net of pension plan investment expense, including inflation 3.00% Annually \n \nActuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases Investment rate of return \nCost of living adjustments \n \nGJRS Entry age Level percent of pay, closed 16.1 years Five-year smoothed fair 2.75% 4.50% 7.50% net of pension plan investment expense, including inflation None \n \nGMPF Entry age Level dollar, closed 16.5 years Five-year smoothed fair 2.75% n/a 7.50% net of pension plan investment expense, including inflation None \n \nActuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases \nERS JRS LRS Investment rate of return \nCost of living adjustments \n \nSEAD - OPEB Entry age Level percent, open Infinite Fair Value of Assets 2.75% \n3.25-7.00% 4.50% n/a 7.50% net of pension plan investment expense, including inflation None \n \n(continued) 86 \n \n Financial Section \nNotes to Required Supplementary Information (UNAUDITED) \nJune 30, 2020 Required Supplementary Information Schedules for the System as a participating employer: (1) Schedules of the System's Proportionate Share of the Net OPEB Liability \nThe information in this schedule presents historical information related to the OPEB liability that is recognized by the System in the current period financial statements. This trend information will be accumulated to display a 10 year presentation. \n(2) Schedules of the System's Contributions to OPEB Plans This schedule presents the required contributions and the percent of required contributions actually contributed. \n(3) Individual Plan Information This note provides information about changes of benefit terms, changes of assumptions, and methods and assumptions used in calculations of actuarially determined contributions. \n(a) SEAD-OPEB Changes of benefit terms  none Changes of assumptions  On December 17, 2015, the SEAD Board adopted recommended changes to the economic and demographic assumptions utilized by the Plan. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for June 30, 2017 actuarial valuation.In addition, based on the SEAD Board's new funding policy, the assumed investment rate of return was reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date, and remained unchanged for June 30, 2019. \n(b) State OPEB Fund Changes of benefit terms  none Changes of assumptions  The June 30, 2017 actuarial valuation was revised, for various factors, including the methodology used to determine how employees and retirees were assigned to each of the OPEB Funds and anticipated participation percentages. Current and former employees of State organizations (including technical colleges, community service boards and public health departments) are now assigned to the State OPEB fund based on their last employer payroll location: irrespective of retirement affiliation. The discount rate was updated from 3.09% as of June 30, 2016 to 3.60% as of June 30, 2017 to 5.22% as of June 30, 2018, and to 7.30% as of June 30, 2019. \n87 \n \n Financial Section \nAdditional Information \nSchedule of Administrative Expenses - Contributions and Expenses Year ended June 30, 2020 (In thousands) \n \nContributions from fiduciary funds: Employees' Retirement System Public School Employees Retirement System Legislative Retirement System Georgia Judicial Retirement System Georgia Military Pension Fund Superior Court Judges Retirement Fund District Attorneys Retirement Fund Georgia Defined Contribution Plan 401(k) Plan 457 Plan State Employees' Assurance Department - OPEB Total fiduciary funds \nContributions from proprietary fund: State Employees' Assurance Department Active Members Fund Total contributions \nExpenses: Personal services: Salaries and fringes Retirement contributions FICA Health insurance Miscellaneous \nCommunications: Postage Publications and printing Telecommunications Travel \nProfessional services: Accounting services Computer services Contracts Actuarial services Medical services Audit fees Legal services \nManagement fees: Building maintenance \nOther services and charges: Temporary services Supplies and materials Repairs and maintenance Courier services Depreciation Miscellaneous Office equipment \nTotal expenses Net income \nSee accompanying independent auditors' report. \n \n$ \n \n7,641 \n \n1,424 \n \n305 \n \n849 \n \n249 \n \n2 \n \n2 \n \n913 \n \n3,816 \n \n745 \n \n720 \n \n16,666 \n \n80 16,746 \n \n5,702 1,297 \n411 583 \n51 8,044 \n \n294 4 \n116 13 \n427 \n \n782 907 3,923 317 108 354 \n33 6,424 \n \n635 \n \n697 91 22 5 \n310 89 2 \n1,216 16,746 \n \n$ \n \n-- \n \n88 \n \n(continued) \n \n Financial Section \nAdditional Information \nSchedule of Investment Expenses Year ended June 30, 2020 (In thousands) \nInvestment advisory and custodial fees Miscellaneous Total investment expenses \nSee accompanying independent auditors' report. \n \n$ \n \n8,359 \n \n12,791 \n \n$ \n \n21,150 \n \n89 \n \n Investment Section \nInvesting in Our Community \nERSGA Staff volunteering with Habitat for Humanity \n \n Investment Section \n \nInvestment Overview \n \nThe first half of the fiscal year was essentially a continuation of the prior year, steady global growth and increasing geopolitical tensions. The second half of the year turned tumultuous as the markets first reacted to the economic effects of the COVID-19 pandemic, and then the monetary and fiscal response which followed. U.S. Real GDP ended up being down 9.5% for the fiscal year after an astonishing decline in the June quarter of 32.9% annualized. The sharp drop in global growth was truly a black swan type of event. In spite of the pandemic, U.S. equities returned 6% over the past year, while foreign markets were down less than 5%, as central banks flooded the world economies with liquidity. Longer-term periods for total equities were generally quite positive. \nWe continually emphasize that the pension plan has a long-term investment horizon and that short-term concerns should not drive investment decisions. The System invests primarily in a mix of liquid, high-quality bonds and stocks. In addition, the System continues to build its private markets program in a disciplined manner. These types of investments further diversify the portfolio and allow the System to participate in rising markets while moderating the risks on the downside. A high-quality balanced fund has proven to be a successful strategy in a variety of markets over long periods of time. \nAs in previous years, the bias to quality was a primary goal and was successfully met. \"Conservation of Capital\" and \"Conservatism\" remain the guiding principles for investment decisions. The Board of Trustees continues to use a diversified portfolio to accomplish these objectives. \nU.S. economic growth plummeted in the final six months of the year, pulling the year over year Real GDP down almost 10%. The sharp decline in the economy transitioned into a vigorous rebound by the end of the year as the nation began to open back up and the economy responded to the massive fiscal and monetary stimulus. Globally, the developed countries have largely followed a similar pattern to the U.S. The emerging markets were more differentiated in their responses, impacts and recoveries from the global shutdown. Economic and earnings growth for the next year are highly dependent on the course the COVID-19 virus takes. \nStudies undertaken to evaluate the investment returns of pension funds over very long-time horizons indicate that the asset allocation decision has the largest impact on the fund's returns. Although the returns for the various asset categories vary from year-to-year, over the long term, equities typically outperform fixed income and cash by a very wide margin. For that reason, the System has generally maintained significant equity exposure with the remainder of the fund invested in fixed income securities designed to generate income and preserve capital. \n \nterms and relative to an asset class index, by reducing emphasis on the short-term volatility of markets. The Daily Valuation Method, a time-weighted rate of return, was used to calculate returns in a manner consistent with the CFA Institute's objectives as stated in its publication \"Global Investment Performance Standards Handbook,\" third edition. \nThe return for the S\u0026P 500 was 7.5%. The S\u0026P MidCap 400 and the S\u0026P SmallCap 600 indexes had returns of (6.7%) and (11.3%), respectively. Growth stocks generally outperformed value stocks by a wide margin for the year, while by sector, information technology had the best performance. Energy was the worst-performing sector again as energy prices collapsed due to high inventories and an oil price war by major producers. \nInternational market returns were negative. The MSCI EAFE Index returned (5.1%) and the Emerging Market Index had a return of (3.4%). Interestingly, although the emerging markets index outperformed the developed markets index, only 3 of the 26 emerging markets country indexes had positive performance compared to 9 of the 22 countries in the developed index. The three emerging market countries with positive performance, China, Korea and Taiwan, have the largest weightings in the index. \nInterest rates declined dramatically last year particularly on the short end of the yield curve, again in response to central bank policies. Nominal rates were barely positive, driving real rates into negative territory. The decline in yields drove bond prices higher resulting in the 10-year Treasury having a total return of 14.0% and the 30-year Treasury bond returning nearly 30% compared to the 1.4% return in Treasury bills. Higher quality corporate bonds also provided decent returns. \nWe look at two fixed-income indexes to measure the bond market's performance. The Bloomberg Barclays Government / Credit Index had a return of 10.0%. It is a broad index containing corporate and governmentsponsored bonds as well as Treasuries. The FTSE Gov/ Corp AAA/AA had a return of 10.2% and is a broad index containing higher-rated corporate bonds as well as Treasuries and Government securities. \nIn summary, despite unprecedented upheavals related to a global pandemic, 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.\" \nPrepared by the Division of Investment Services \n \nReturns for one, three, five, ten, twenty, and thirty-year periods are presented in this section. Longer periods allow for a more valid evaluation of returns, both in absolute \n \n91 \n \n Investment Section \nPooled Investment Fund \nAs of June 30, 2020 (in thousands) \n \nEmployees' Retirement System (ERS) Public School Employees Retirement System (PSERS) Legislative Retirement System (LRS) Georgia Judicial Retirement System (GJRS) State Employees' Assurance Department (SEAD) - Active State Employees' Assurance Department (SEAD) - OPEB Survivors Benefit Fund (SBF) Georgia Military Pension Fund (GMPF) Total \nRates of Return \n \n14.0 \n \n10.0 \n \n12.0 \n \n10.0 \n \n8.0 \n \n8.0 \n \n6.0 \n \n6.0 \n \n4.0 \n \n2.0 \n \n4.0 \n \n0.0 \n \n-2.0 \n \n2.0 \n \n-4.0 \n \n-6.0 \n \n0.0 \n \n1 Year \n \n3 Year \n \n5 Year 10 Year 20 Year 30 Year \n \nEquities MSCI ACWI ex US \n \nS\u0026P 1500 \n \n$ \n \n13,456,293 \n \n958,718 \n \n34,599 \n \n485,633 \n \n319,146 \n \n1,256,402 \n \n167,359 \n \n28,995 \n \n$ \n \n16,707,145 \n \n1 Year \n \n3 Year \n \n5 Year 10 Year 20 Year 30 Year \n \nFixed Income 1 month T bills \n \nBarclays Govt/Credit \n \n10.0 \n \n8.0 \n \n6.0 \n \n4.0 \n \n2.0 \n \n0.0 \n \n1 Year \n \n3 Year \n \n5 Year 10 Year 20 Year 30 Year \n \nTotal Portfolio \n \nCPI \n \nEquities \n \nS\u0026P 1500 MSCI ACWI ex US \n \nFixed Income \n \nBarclay's Govt/Credit \n \n1 Month T-Bills \n \nTotal Portfolio \n \n1 year 3 year 5 year 10 year 20 year 30 year \n \n3.23 % 7.64 % 8.17 % 11.61 % 5.16 % 8.93 % \n \n6.08 % 9.91 % 10.20 % 13.75 % 6.20 % \n \n(4.80)% 1.13 % 2.26 % 4.97 % \n \n9.87 % 5.40 % 4.11 % 3.54 % 5.17 % 6.54 % \n \n10.02 % 5.87 % 4.74 % 4.13 % 5.30 % 6.14 % \n \n1.37 % 1.64 % 1.09 % 0.57 % 1.49 % 2.49 % \n \n5.48 % 7.18 % 7.02 % 9.15 % 5.72 % 8.31 % \n \nNote: Time-weighted rates of return are calculated using the Daily Valuation Method based on market rates of return. \n \nCPI \n0.71 % 1.75 % 1.59 % 1.71 % 2.03 % 2.30 % \n \n92 \n \n Investment Section \nAsset Allocation at Fair Value \n \n80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% \n0.00% \n \n2020 \n \n2019 \n \n2018 \n \nEquities Mutual \u0026 Commingled Funds \n \n2017 \n \n2016 \n \nFixed Income Private Equity \n \n2015 \n \nInvestment Summary \n \nAsset Allocation as of June 30 (in percentages) \n \nEquities Fixed Income Mutual and Commingled Funds Private Equity \n \n2020 60.9 % 26.9 10.2 2.0 \n \n2019 61.1 27.4 9.7 1.8 \n \nTotal \n \n100.0 % \n \n100.0 \n \n2018 61.9 28.1 8.8 1.2 \n100.0 \n \n2017 63.9 27.1 8.2 0.8 \n100.0 \n \n2016 62.3 29.5 7.6 0.6 \n100.0 \n \n2015 65.3 27.2 7.2 0.3 \n100.0 \n \nAsset Allocation as of June 30 (in millions) \n \nEquities Fixed Income Mutual and Commingled Funds Private Equity \n \n2020 \n$ 11,279 4,959 1,893 365 \n \n2019 \n11,138 4,984 1,769 335 \n \nTotal \n \n$ 18,496 18,226 \n \n2018 11,140 \n5,040 1,599 \n222 \n18,001 \n \n2017 11,030 \n4,668 1,421 \n134 \n17,253 \n \n2016 10,005 \n4,733 1,226 \n94 \n16,058 \n \n2015 10,915 \n4,543 1,204 \n52 \n16,714 \n \n93 \n \n Investment Section \nSchedule of Fees and Commissions \nYear ended June 30, 2020 (In thousands) \n \nInvestment Advisors' Fees: \n \nU.S. Equity \n \n$ \n \nInternational Equity \n \nFixed Income \n \nInvestment Commissions: \n \nU.S. Equity \n \nInternational Equity \n \nTransaction Fees: \n \nMiscellaneous*: \n \nTotal Fees and Commissions \n \n$ \n \n*Includes capitalized fees not included in total investment expenses shown on page 89. \n \n3,073 4,746 \n-- \n947 1,332 \n376 21,565 \n32,039 \n \n94 \n \n Investment Section \nTwenty Largest Equity Holdings  \nAs of June 30, 2020 (In thousands) \n \nShares \n1,751,724 897,334 107,051 147,578 671,180 581,207 549,150 600,710 179,300 261,899 428,480 786,248 \n1,274,504 1,071,830 1,244,257 \n288,610 142,379 518,208 164,254 1,310,513 \n \nCompany \n \nFair Value \n \nMicrosoft Corp. \n \n$ \n \nApple Inc. \n \nAmazon.Com Inc. \n \nAlphabet Inc. \n \nSPDR S\u0026P 500 Trust ETF \n \nFacebook Inc. \n \nVisa Inc. \n \nJohnson \u0026 Johnson \n \nNetflix Inc. \n \nUnitedHealth Group \n \nBerkshire Hathaway Inc. \n \nJPMorgan Chase \u0026 Co. \n \nTaiwan Semiconductor Manufacturing Company Limited \n \nTencent Holdings Ltd. \n \nVerizon Communications Inc. \n \nAlibaba Group Holding Ltd. \n \nAdobe Inc. \n \nProcter \u0026 Gamble Co. \n \nASML Holding NV \n \nExxon Mobil Corp. \n \n356,493 327,347 295,334 208,979 206,965 131,975 106,079 \n84,478 81,589 77,247 76,488 73,954 72,354 68,953 68,597 62,253 61,979 61,962 60,450 58,606 \n \nTop Twenty Equities Remaining Equities \n \n$ \n \n2,542,082 \n \n8,735,659 \n \nTotal Equities \nA complete listing is available upon written request, subject to restrictions of O.C.G.A. Section 47-1-14. \n \n$ 11,277,741 \n \n95 \n \n Investment Section \nTop 10 Fixed Income Holdings* \nAs of June 30, 2020 \n \nIssuer \nUS TREAS. NOTE US TREAS. NOTE US TREAS. NOTE US TREAS. NOTE US TREAS. NOTE US TREAS. NOTE US TREAS. BOND US TREAS. BOND US TREAS. BOND INTEL CORP \n \nYear of Maturity \n2024 2025 2025 2025 2023 2027 2039 2028 2049 2024 \n \nInterest Rate \n2.2500 % 2.6250 2.5000 2.7500 1.5000 2.2500 3.5000 5.2500 3.0000 2.7000 \n \nPar Value (in thousands) \n \n$ \n \n313,000 \n \n200,000 \n \n200,000 \n \n190,000 \n \n195,000 \n \n160,000 \n \n113,000 \n \n102,000 \n \n100,000 \n \n120,000 \n \nFair Value (in thousands) \n \n$ \n \n340,278 \n \n222,164 \n \n220,406 \n \n213,684 \n \n202,092 \n \n180,200 \n \n159,869 \n \n141,190 \n \n138,063 \n \n128,963 \n \nTotal of 10 Largest ERS \u0026 GDCP Fixed Income Holdings Remaining Fixed Income Holdings \nTotal ERS and Defined Contribution Fixed Income Securities \n \n1,946,909 $ 3,012,538 \n$ 4,959,447 \n \n*A complete listing is available upon written request, subject to restrictions of O.C.G.A. Section 47-1-14. \n \n96 \n \n Actuarial Section \nServing Our Members for 70 Years \nERSGA Outreach and Recognition See the Appendix for staff SCCP awards. \n \n Actuarial Section \n \nERS \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nApril 16, 2020 \n \nBoard of Trustees Employees' Retirement System of Georgia Two Northside 75, Suite 300 Atlanta, GA 30318 \n \nAttn: Mr. James Potvin, Executive Director \n \nMembers of the Board: \nSection 47-2-26 of the law governing the operation of the Employees' Retirement System of Georgia provides that the actuary shall make annual valuations of the contingent assets and liabilities of the Retirement System on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2019. The report indicates that annual employer contributions at the rate of 19.88% of compensation for Old Plan Members, 24.63% of compensation for New Plan Members, and 21.57% of compensation for GSEPS Members for the fiscal year ending June 30, 2022 are sufficient to support the benefits of the System. \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2019 session of the General Assembly. The valuation reflects two one-time 3% payments to certain retirees and beneficiaries effective July 2019 and January 2020. \nEffective with the June 30, 2017 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the actual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return \n \nfrom the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of investment expenses. Since the actual rate of return for the year ending June 30, 2019 was less than 7.30%, the assumed rate of return used in the current valuation remained at 7.30%. \nThe System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level as a percent of payroll. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a level percent of payroll. Gains and losses are reflected in the total unfunded accrued liability which is being amortized on a level dollar basis in accordance with the funding policy adopted by the Board. \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports. \nWe have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report: \n Summary of Actuarial Assumptions  Schedule of Active Members  Schedule of Funding Progress \n \n(continued) 98 \n \n Actuarial Section \n \n Schedule of Retirees Added to and Removed from Rolls \n Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \nThe System is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the System and on actuarial assumptions \n \nthat are internally consistent and reasonably based on the actual experience of the System. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \nSincerely yours, \n \nEdward J. Koebel, EA, FCA, MAAA Chief Executive Officer \n \nCathy Turcot Principal and Managing Director \n \nBen Mobley, ASA, FCA, MAAA Senior Actuary \n \n99 \n \n Actuarial Section \n \nPSERS April 16, 2020 \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nBoard of Trustees Georgia Public School Employees Retirement System Two Northside 75, Suite 300 Atlanta, GA 30318 \n \nAttn: Mr. James Potvin, Executive Director \n \nMembers of the Board: \n \nSection 47-4-60 of the law governing the operation of the Georgia Public School Employees Retirement System provides that the employer contribution shall be actuarially determined and approved by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2019. Based on a monthly benefit accrual rate of $15.50, which is effective July 1, 2019, the valuation indicates that annual employer contributions of $30,891,000 or $888.52 per active member for the fiscal year ending June 30, 2022 are sufficient to support the benefits of the System. \nSince the previous valuation, the monthly benefit accrual rate has been increased from $15.25 to $15.50 per year of creditable service with an effective date of July 1, 2019 for members retiring after August 1, 2012. In addition, the results of the valuation reflect that the Board granted a 1.50% cost-of-living adjustment (COLA) on January 1, 2020 to certain retired members and beneficiaries rather than the 1.50% anticipated cost-of-living adjustments to retired members on both July 1, 2019 and on January 1, 2020. \nEffective with the June 30, 2017 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the actual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of investment expenses. Since the actual rate of return for the year ending June 30, 2019 was less than 7.30%, the assumed rate of return used in the current valuation remained at 7.30%. \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all \n \nof the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2019 session of the General Assembly. \nThe System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level as a dollar per active member. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a dollar per active member. Gains and losses are reflected in the total unfunded accrued liability which is being amortized as a level dollar per active member in accordance with the funding policy adopted by the Board. \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports. \nWe have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report: \n Summary of Actuarial Assumptions  Schedule of Active Members \n \n(continued) 100 \n \n Actuarial Section \n \n Schedule of Funding Progress  Schedule of Retirees Added to and Removed from \nRolls  Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \nThe System is currently being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is currently operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with \n \naccepted actuarial procedures, based on the current provisions of the System and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \nSincerely yours, \n \nEdward J. Koebel, EA, FCA, MAAA Chief Executive Officer \n \nCathy Turcot Principal and Managing Director \n \nBen Mobley, ASA, FCA, MAAA Senior Actuary \n \n101 \n \n Actuarial Section \n \nGJRS April 16, 2020 \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nBoard of Trustees Georgia Judicial Retirement System Two Northside 75, Suite 300 Atlanta, GA 30318 \n \nAttn: Mr. James Potvin, Executive Director \n \nMembers of the Board: \nSection 47-23-21 of the law governing the operation of the Georgia Judicial Retirement System provides that the actuary shall make annual valuations of the contingent assets and liabilities of the Retirement System on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2019. The report indicates that annual employer contributions at the rate of 8.81% of compensation for the fiscal year ending June 30, 2022 are sufficient to support the benefits of the System. \nThe results of the valuation reflect the two one-time payments to certain retirees and beneficiaries effective July 2019 and January 2020. \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2019 session of the General Assembly. \n \nassumed rate of return used in the current valuation remained at 7.30%. \nThe System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level as a percent of payroll. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a level percent of payroll. Gains and losses are reflected in the total unfunded accrued liability which is negative and being amortized as a level percent of payroll in accordance with the funding policy adopted by the Board. \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports. \nWe have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report: \n \nEffective with the June 30, 2017 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the actual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of investment expenses. Since the actual rate of return for the year ending in June 30, 2019 was less than 7.30%, the \n \n Summary of Actuarial Assumptions  Schedule of Active Members  Schedule of Funding Progress  Schedule of Retirees Added to and Removed from \nRolls  Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \n \n(continued) 102 \n \n Actuarial Section \n \nThe System is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System. \n \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \nSincerely yours, \n \nEdward J. Koebel, EA, FCA, MAAA Chief Executive Officer \n \nCathy Turcot Principal and Managing Director \n \nBen Mobley, ASA, FCA, MAAA Senior Actuary \n \n103 \n \n Actuarial Section \n \nLRS April 16, 2020 \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nBoard of Trustees Legislative Retirement System of Georgia Two Northside 75, Suite 300 Atlanta, GA 30318 \n \nAttn: Mr. James Potvin, Executive Director \n \nMembers of the Board: \nSection 47-6-22 of the law governing the operation of the Georgia Legislative Retirement System provides that the actuary shall make periodic valuations of the contingent assets and liabilities of the Retirement System on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2019. The report indicates that no annual employer contributions for the fiscal year ending June 30, 2022 are required to support the benefits of the System. \nThe results of the valuation reflect that the Board did not grant the anticipated cost-of-living adjustments (COLAs) to retired members on July 1, 2019 and on January 1, 2020. In addition, the results of the valuation reflect the two onetime payments to certain retirees and beneficiaries effective July 2019 and January 2020. \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2019 session of the General Assembly. \n \ninvestment expenses. Since the actual rate of return for the year ending June 30, 2019 was less than 7.30%, the assumed rate of return used in the current valuation remained at 7.30%. \nThe System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level as a dollar per active member. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a level dollar per active member. Gains and losses are reflected in the total unfunded accrued liability which is negative and being amortized as a level dollar per active member in accordance with the funding policy adopted by the Board. \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports. \nWe have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report: \n \nEffective with the June 30, 2017 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the actual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of \n \n Summary of Actuarial Assumptions  Schedule of Active Members  Schedule of Funding Progress  Schedule of Retirees Added to and Removed from \nRolls  Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \n \n(continued) 104 \n \n Actuarial Section \n \nThe System is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System. \n \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \nSincerely yours, \n \nEdward J. Koebel, EA, FCA, MAAA Chief Executive Officer \n \nCathy Turcot Principal and Managing Director \n \nBen Mobley, ASA, FCA, MAAA Senior Actuary \n \n105 \n \n Actuarial Section \n \nGMPF April 16, 2020 \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nBoard of Trustees Georgia Military Pension Fund Two Northside 75, Suite 300 Atlanta, GA 30318 \n \nAttn: Mr. James Potvin, Executive Director \n \nMembers of the Board: \n \nSection 47-24-22 of the law governing the operation of the Georgia Military Pension Fund provides that the actuary shall make periodic valuations of the contingent assets and liabilities of the Pension Fund on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the Fund prepared as of June 30, 2019. The report indicates that annual employer contributions of $2,697,265 or $196.72 per active member for the fiscal year ending June 30, 2022 are sufficient to support the benefits of the Fund. \nIn preparing the valuation, the actuary relied on data provided by the Fund. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the Fund enacted through the 2019 session of the General Assembly. \nEffective with the June 30, 2017 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the actual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of investment expenses. Since the actual rate of return for the year ending June 30, 2019 was less than 7.30%, the assumed rate of return used in the current valuation remained at 7.30%. \n \nThe Fund is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the Fund and to reasonable expectations of anticipated experience under the Fund. The assumptions and methods used for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level as a dollar per active member. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a dollar per active member. Gains and losses are reflected in the total unfunded accrued liability which is being amortized as a level dollar per active member in accordance with the funding policy adopted by the Board. \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports. \nWe have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report: \n Summary of Actuarial Assumptions  Schedule of Active Members  Schedule of Funding Progress  Schedule of Retirees Added to and Removed from \nRolls  Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \nThe Fund is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board . In our opinion the \n \n(continued) 106 \n \n Actuarial Section \n \nFund is operating on an actuarially sound basis. Assuming that contributions to the Fund are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the Fund may be safely anticipated. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience is performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the Fund. \n \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \nSincerely yours, \n \nEdward J. Koebel, EA, FCA, MAAA Chief Executive Officer \n \nCathy Turcot Principal and Managing Director \n \nBen Mobley, ASA, FCA, MAAA Senior Actuary \n \n107 \n \n Actuarial Section \n \nSEAD Post-Retirement (SEAD-OPEB) April 16, 2020 \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nBoard of Trustees Employees' Retirement System of Georgia Two Northside 75, Suite 300 Atlanta, GA 30318 \n \nAttn: Mr. James Potvin, Executive Director \n \nMembers of the Board: \nChapters 47-2 and 47-19 of the Code of Georgia which govern the operation of the Georgia Employees' Group Term Life Insurance Plan provide that the actuary shall make periodic valuations of the contingent assets and liabilities of the Insurance Plan on the basis of regular interest and the tables last adopted by the Board of Trustees. In this report, we have determined liabilities for life insurance benefits payable upon death after retirement (Post-Retirement). \nWe have determined the liabilities for life insurance benefits payable upon death after retirement. We have submitted the report giving the results of the valuation of the Plan prepared as of June 30, 2019. The report indicates, for post-retirement benefits, there is no employer annual required contribution for the fiscal year ending June 30, 2022. \nEffective with the June 30, 2017 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the actual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of investment expenses. Since the actual rate of return for the year ending June 30, 2019 was less than 7.30%, the assumed rate of return used in the current valuation remained at 7.30%. Gains and losses are reflected in the unfunded accrued liability. The actuarial assumptions used are in the aggregate reasonably related to the experience under the Plan and to reasonable expectations of anticipated experience under the Plan. In our opinion, the Plan is operating on an actuarially sound basis and the sufficiency of the funds to provide the benefits called for by the Plan may be safely anticipated assuming future actuarially determined contributions (ADC) are contributed when due. \n \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 74 and 75. The necessary disclosure information is provided in separate supplemental reports. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the Plan. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \n(continued) 108 \n \n Actuarial Section \nSincerely yours, \n \nEdward J. Koebel, EA, FCA, MAAA Chief Executive Officer \n \nCathy Turcot Principal and Managing Director \n \nBen Mobley, ASA, FCA, MAAA Senior Actuary \n \n109 \n \n Actuarial Section \nSummary of Plan Provisions \nERS  Please see Notes to Financial Statements, (2)(a), pages 31-32. PSERS  Please see Notes to Financial Statements, (2)(b), page 32-33. LRS  Please see Notes to Financial Statements, (2)(c), page 33-34. GJRS  Please see Notes to Financial Statements, (2)(d), pages 34-35. GMPF  Please see Notes to Financial Statements, (2)(e), pages 35-36. SEAD-OPEB  Please see Notes to Financial Statements, (2)(h), pages 36-37. \nThe following Boards are responsible for establishing and maintaining the funding policies of the various defined benefit pension plans administered by the System: \n Board of Trustees of the Employees' Retirement System: ERS, LRS, and GMPF  Board of Trustees of the Public School Employees Retirement System: PSERS  Board of Trustees of the Georgia Judicial Retirement System: GJRS \nThe following Board is responsible for establishing and maintaining the funding policy of the defined benefit postemployment life insurance plan administered by the System: \n Board of Directors of the State Employees' Assurance Department: SEAD-OPEB \nERS, PSERS, LRS, GJRS, and GMPF are all subject to the provisions of GASB Statement No. 67, Financial Reporting for Pension Plans, an amendment of GASB Statement No. 25 (GASB 67). All of the plans covered under GASB 67 use the Entry Age Normal actuarial cost method for both funding and financial reporting purposes. This continues a longstanding practice for all of those plans and provides a point of consistency between the funding provisions and the GASB 67 requirements. \nSEAD-OPEB is subject to the provisions of GASB 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. SEAD-OPEB uses the Entry Age Normal actuarial cost method for both funding and financial reporting purposes. \nFor all of the plans covered under GASB 67, the GASB 67 reports prepared as of June 30, 2020 were largely based on the data, assumptions, and results of the annual funding valuations as of June 30, 2019. The Total Pension Liability (TPL) for each plan, determined using the Entry Age Normal method, was then rolled forward to the June 30, 2020 measurement date. The Net Pension Liability for each plan is equal to the rolled forward TPL less the plan's net position as of June 30, 2020. \nFor the plan covered under GASB 74, the GASB 74 report prepared as of June 30, 2020 was largely based on the data, assumptions, and results of the annual funding valuation as of June 30, 2019. The Total OPEB Liability (TOL) for the plan, determined using the Entry Age Normal method, was then rolled forward to the June 30, 2020 measurement date. The Net OPEB Liability for the plan is equal to the rolled forward TOL less the plan's net position as of June 30, 2020. \nFor the pension plans' funding valuations as of June 30, 2019, the Actuarial Value of Assets is calculated using a fiveyear smoothing methodology, whereby excesses and shortfalls of actual investment income over or under the expected investment return will be recognized over the succeeding five-year periods. \nFor the life insurance plan's funding valuation as of June 30, 2019, the Actuarial Value of Assets is equal to the Fair Value of Assets as of June 30, 2019. \n(continued) 110 \n \n Actuarial Section \nSummary of Plan Provisions \nFor the funding valuations, each plan covered under GASB 67 utilizes a 7.30% assumed rate of return and a 7.30% discount rate for the calculation of the respective plans' liabilities. The Single Equivalent Interest Rate required under GASB 67 has been determined to be 7.30% by the plans' actuaries. The plan covered under GASB 74 utilizes a 7.30% assumed rate of return and a 7.30% discount rate for the calculation of the plan's liabilities. The Single Equivalent Interest Rate required under GASB 74 has been determined to be 7.30% by the plan's actuaries. \n111 \n \n Actuarial Section \nSummary of Actuarial Assumptions \nThe laws governing the Employees' Retirement System and the plans it administers require an actuary to perform an annual valuation of the soundness of the plans. In addition, the actuary must perform at least once every five years an actuarial investigation of the mortality, service, and compensation experience of the members and beneficiaries of the System. The latest valuations were performed as of June 30, 2019 based on actuarial assumptions approved by the ERS Board, PSERS Board, GJRS Board, and SEAD Board during the last experience study on December 17, 2015. \nThe more pertinent facts and significant assumptions underlying the computations included in the June 30, 2019 reports are as follows: \n \nValuation Date Actuarial Cost Method \nAmortization Method \n \nERS \n \nPSERS \n \nGJRS \n \nJune 30, 2019 Entry age \n \nJune 30, 2019 Entry age \n \nJune 30, 2019 Entry age \n \nLevel dollar, closed Level dollar, closed Level percent of pay, closed \n \nLRS \nJune 30, 2019 Entry age \nLevel dollar, open \n \nGMPF \nJune 30, 2019 Entry age \nLevel dollar, closed \n \nAmortization Period \nActuarial Asset Valuation Method \nInvestment Rate of Return Inflation Rate Projected Salary Increases COLA \n \n15.3 years \n \n19.6 years \n \n14.3 years \n \nInfinite \n \n14.6 years \n \nThe actuarial value of assets was based on the total fair value income of investments, with the excess or shortfall of actual investment income over or under the expected investment return smoothed over five years. One-fifth of the excess or shortfall is recognized each year for five years. \n \n7.30% 2.75% 3.25 to 7.00% None \n \n7.30% 2.75% \nn/a 1.50% Semi-annually \n \n7.30% 2.75% 4.50% None \n \n7.30% 2.75% \nn/a 3.00% Annually \n \n7.30% 2.75% \nn/a None \n \nValuation Date Actuarial Cost Method \nAmortization Method \nAmortization Period \nActuarial Asset Valuation Method \nInvestment Rate of Return Inflation Rate Projected Salary Increases \nERS GJRS LRS COLA \n \nSEAD-OPEB June 30, 2019 \nEntry age Level dollar, open \nInfinite \nFair Value of Assets \n7.30% 2.75% \n3.25-7.00% 4.50% n/a None \n \n(continued) 112 \n \n Actuarial Section \nSummary of Actuarial Assumptions \nRates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability) \n \nERS \n \nRepresentative values of the assumed annual rates of separation other than retirement for non-law enforcement officers are as follows. Special rates of separation apply to law enforcement officers. \n \nAnnual Rates of Annual Rates of \n \nDeath \n \nDisability \n \nAge Men Women Men Women \n \n20 .0320 % .0177 % .05 % .02 % \n \n25 .0349 .0192 \n \n.05 \n \n.02 \n \n30 .0412 .0245 \n \n.05 \n \n.02 \n \n35 .0717 .0441 \n \n.05 \n \n.02 \n \n40 .1001 .0655 \n \n.25 \n \n.10 \n \n45 .1399 .1043 \n \n.48 \n \n.25 \n \n50 .1983 .1555 \n \n.70 \n \n.45 \n \n55 .2810 .2228 \n \n1.05 \n \n.73 \n \n60 .4092 .3058 \n \n-- \n \n-- \n \n65 .5600 .4304 \n \n-- \n \n-- \n \nAnnual Rates of Withdrawal Years of Service \n \n0-4 \n \n5-9 \n \n10 \u0026 over \n \nAge \n \nMen Women Men Women Men Women \n \n20 \n \n35.00 % 30.00 % \n \n-- % \n \n-- % \n \n-- % \n \n-- % \n \n25 \n \n27.50 25.00 15.00 17.50 \n \n-- \n \n-- \n \n30 \n \n23.00 21.50 11.50 12.50 \n \n7.50 \n \n8.25 \n \n35 \n \n21.50 19.50 10.00 10.50 \n \n6.00 \n \n6.00 \n \n40 \n \n19.50 18.25 \n \n9.50 \n \n9.50 \n \n4.75 \n \n5.00 \n \n45 \n \n18.60 16.50 \n \n9.00 \n \n8.00 \n \n4.00 \n \n4.00 \n \n50 \n \n16.60 15.00 \n \n7.25 \n \n7.25 \n \n4.25 \n \n4.25 \n \n55 \n \n14.50 14.00 \n \n7.00 \n \n7.00 \n \n4.75 \n \n4.50 \n \n60 \n \n14.00 14.50 \n \n6.00 \n \n6.25 \n \n-- \n \n-- \n \n65 \n \n15.00 17.00 10.00 11.00 \n \n-- \n \n-- \n \n(continued) 113 \n \n Actuarial Section \nSummary of Actuarial Assumptions \nRates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability) \nPSERS \n \nAnnual Rates of Annual \n \nDeath \n \nRates of \n \nDisability \n \nAge Men Women Both \n \n20 .0320 % .0177 % \n \n-- % \n \n25 .0349 .0192 \n \n-- \n \n30 .0412 .0245 \n \n-- \n \n35 .0717 .0441 \n \n.0025 \n \n40 .1001 .0655 \n \n.0110 \n \n45 .1399 .1043 \n \n.0370 \n \n50 .1983 .1555 \n \n.0865 \n \n55 .2810 .2228 \n \n.2250 \n \n60 .4092 .3058 \n \n.3500 \n \n65 .5600 .4304 \n \n-- \n \nAnnual Rates of Withdrawal Years of Service \n \n0-4 \n \n5-9 \n \n10 \u0026 over \n \nAge Men Women Men Women Men Women \n \n20 37.00 % 32.00 % \n \n-- % \n \n-- % \n \n-- % \n \n-- % \n \n25 28.00 28.00 17.00 18.00 \n \n-- \n \n-- \n \n30 25.00 23.00 15.00 15.00 12.00 10.00 \n \n35 23.00 19.00 13.00 13.00 \n \n9.00 10.00 \n \n40 21.00 17.00 12.00 12.00 \n \n7.50 \n \n8.00 \n \n45 19.00 15.50 11.00 10.00 \n \n6.50 \n \n7.00 \n \n50 17.00 14.00 \n \n9.00 \n \n8.50 \n \n6.50 \n \n6.00 \n \n55 15.00 12.00 \n \n9.00 \n \n8.00 \n \n6.00 \n \n5.50 \n \n60 12.00 11.00 \n \n7.50 \n \n7.50 \n \n-- \n \n-- \n \n(continued) 114 \n \n Actuarial Section \nSummary of Actuarial Assumptions \nRates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability) \n \nGJRS \n \nAnnual Rates of \n \nWithdrawal \n \nDeath \n \nDisability \n \nAge \n \nBoth \n \nMen Women Both \n \n20 \n \n4.0 % .032 % .018 % \n \n.03 % \n \n25 \n \n4.0 .035 .019 \n \n.03 \n \n30 \n \n4.0 .041 .025 \n \n.05 \n \n35 \n \n4.0 .072 .044 \n \n.08 \n \n40 \n \n6.0 .100 .066 \n \n.10 \n \n45 \n \n4.0 .140 .104 \n \n.18 \n \n50 \n \n3.0 .198 .156 \n \n.25 \n \n55 \n \n2.5 .281 .223 \n \n.45 \n \n60 \n \n2.5 .409 .306 \n \n.73 \n \n65 \n \n2.5 .560 .430 \n \n1.18 \n \nLRS \n \nAnnual Rates of \n \nWithdrawal \n \nDeath \n \nAge \n \nBoth \n \nMen Women \n \n20 \n \n8.0 % .032 % .018 % \n \n25 \n \n8.0 .035 .019 \n \n30 \n \n8.0 .041 .025 \n \n35 \n \n8.0 .072 .044 \n \n40 \n \n8.0 .100 .066 \n \n45 \n \n8.5 .140 .104 \n \n50 \n \n8.5 .198 .156 \n \n55 \n \n9.0 .281 .223 \n \n60 \n \n9.0 .409 .306 \n \n65 \n \n9.0 .560 .430 \n \nGMPF \n \nRates of Withdrawal from Active Service \n \nService 2 or Less 3-7 8-9 10-14 15-19 20 or more \n \nRates 13.0 % 17.5 14.0 13.5 \n8.5 14.5 \n \n115 \n \nAge \n \nRates of Death \n \nMen \n \nWomen \n \n25 \n \n.0349 % .0192 % \n \n30 \n \n.0412 \n \n.0245 \n \n35 \n \n.0717 \n \n.0441 \n \n40 \n \n.1001 \n \n.0655 \n \n45 \n \n.1399 \n \n.1043 \n \n50 \n \n.1983 \n \n.1555 \n \n55 \n \n.2810 \n \n.2228 \n \n60 \n \n.4092 \n \n.3058 \n \n(continued) \n \n Actuarial Section \nSummary of Actuarial Assumptions \nRates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability) \nSEAD-OPEB \n \nAll Groups \n \nERS \n \nGJRS \n \nAnnual Rates of Death \n \nAnnual Rates of Disability \n \nAnnual Rates of Disability \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nBoth \n \n20 \n \n.0320 % .0177 % .05 % .02 % \n \n25 \n \n.0349 \n \n.0192 \n \n.05 \n \n.02 \n \n30 \n \n.0412 \n \n.0245 \n \n.05 \n \n.02 \n \n35 \n \n.0717 \n \n.0441 \n \n.05 \n \n.02 \n \n40 \n \n.1001 \n \n.0655 \n \n.25 \n \n.10 \n \n45 \n \n.1399 \n \n.1043 \n \n.48 \n \n.25 \n \n50 \n \n.1983 \n \n.1555 \n \n.70 \n \n.45 \n \n55 \n \n.2810 \n \n.2228 \n \n1.05 \n \n.73 \n \n60 \n \n.4092 \n \n.3058 \n \n-- \n \n-- \n \n65 \n \n.5600 \n \n.4304 \n \n-- \n \n-- \n \n.03 % .03 .05 .08 .10 .18 .25 .45 .73 1.18 \n \nERS \n \nLRS \n \nGJRS \n \nAnnual Rates of Withdrawal Years of Service \n \nAnnual Rates Annual Rates of Withdrawal of Withdrawal \n \n0-4 \n \n5-9 \n \n10 \u0026 over \n \nAge Men Women Men Women Men Women \n \n20 35.00 % 30.00 % \n \n-- % \n \n-- % \n \n-- % \n \n-- % \n \n25 27.50 \n \n25.00 \n \n15.00 \n \n17.50 \n \n-- \n \n-- \n \n30 23.00 \n \n21.50 \n \n11.50 \n \n12.50 \n \n7.50 \n \n8.25 \n \n35 21.50 \n \n19.50 \n \n10.00 \n \n10.50 \n \n6.00 \n \n6.00 \n \n40 19.50 \n \n18.25 \n \n9.50 \n \n9.50 \n \n4.75 \n \n5.00 \n \n45 18.60 \n \n16.50 \n \n9.00 \n \n8.00 \n \n4.00 \n \n4.00 \n \n50 16.60 \n \n15.00 \n \n7.25 \n \n7.25 \n \n4.25 \n \n4.25 \n \n55 14.50 \n \n14.00 \n \n7.00 \n \n7.00 \n \n4.75 \n \n4.50 \n \n60 14.00 \n \n14.50 \n \n6.00 \n \n6.25 \n \n-- \n \n-- \n \n65 15.00 \n \n17.00 \n \n10.00 \n \n11.00 \n \n-- \n \n-- \n \nBoth 8.00 % 8.00 8.00 8.00 8.00 8.50 8.50 9.00 9.00 9.00 \n \nBoth 4.00 % 4.00 4.00 4.00 6.00 4.00 3.00 2.50 2.50 2.50 \n \n(continued) 116 \n \n Actuarial Section \nSummary of Actuarial Assumptions \nAnnual Rates of Retirement \nERS \n \nOld Plan \n \nEarly Retirement Age 60 for 30 years \n \n34 years \n \nMore than 34 years \n \nAge \n \nMen Women Men Women Men Women Men Women \n \n50 \n \n2.0 % \n \n2.0 % \n \n7.5 % \n \n6.0 % 100.0 % 100.0 % 90.0 % 100.0 % \n \n52 \n \n2.0 \n \n2.0 \n \n7.5 \n \n6.0 \n \n100.0 \n \n100.0 \n \n90.0 \n \n100.0 \n \n55 \n \n3.0 \n \n3.5 \n \n7.5 \n \n10.0 \n \n100.0 \n \n100.0 \n \n75.0 \n \n90.0 \n \n57 \n \n3.5 \n \n5.0 \n \n10.5 \n \n10.0 \n \n100.0 \n \n100.0 \n \n70.0 \n \n70.0 \n \n60 \n \n-- \n \n-- \n \n15.0 \n \n20.0 \n \n97.5 \n \n95.0 \n \n40.0 \n \n55.0 \n \n62 \n \n-- \n \n-- \n \n32.0 \n \n40.0 \n \n97.5 \n \n95.0 \n \n40.0 \n \n65.0 \n \n65 \n \n-- \n \n-- \n \n35.0 \n \n40.0 \n \n35.0 \n \n40.0 \n \n35.0 \n \n40.0 \n \n67 \n \n-- \n \n-- \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n70 \n \n-- \n \n-- \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n75 \n \n-- \n \n-- \n \n100.0 \n \n100.0 \n \n100.0 \n \n100.0 \n \n100.0 \n \n100.0 \n \nNew Plan and GSEPS \n \nEarly Retirement \n \nNormal Retirement \n \nAge \n \nMen \n \nWomen \n \nMen* \n \nWomen** \n \n50 \n \n7.0 % \n \n4.5 % \n \n70.0 % \n \n50.0 % \n \n52 \n \n7.0 \n \n4.5 \n \n70.0 \n \n45.0 \n \n55 \n \n7.0 \n \n6.5 \n \n60.0 \n \n50.0 \n \n57 \n \n8.0 \n \n8.0 \n \n50.0 \n \n40.0 \n \n60 \n \n-- \n \n-- \n \n25.0 \n \n30.0 \n \n62 \n \n-- \n \n-- \n \n40.0 \n \n40.0 \n \n65 \n \n-- \n \n-- \n \n32.0 \n \n35.0 \n \n67 \n \n-- \n \n-- \n \n32.0 \n \n32.0 \n \n70 \n \n-- \n \n-- \n \n30.0 \n \n30.0 \n \n75 \n \n-- \n \n-- \n \n100.0 \n \n100.0 \n \n*An additional 10% of active male New Plan and GSEPS members less than age 55 and 20% between ages 55-59, inclusive, are expected to retire in the year in which they attain 30 years of service. \n**An additional 20% of active female New Plan and GSEPS members less than age 60 are expected to retire in the year in which they attain 30 years of service. \n \n(continued) 117 \n \n Actuarial Section \nSummary of Actuarial Assumptions \nAnnual Rates of Retirement \nPSERS \n \nAge Annual Rate of Retirement \n \nAge \n \nAnnual Rate of Retirement \n \n60 \n \n13.0 % \n \n68 \n \n23.0 % \n \n61 \n \n13.0 \n \n69 \n \n26.0 \n \n62 \n \n22.0 \n \n70 \n \n27.0 \n \n63 \n \n17.5 \n \n71 \n \n27.0 \n \n64 \n \n17.0 \n \n72 \n \n27.0 \n \n65 \n \n28.0 \n \n73 \n \n27.0 \n \n66 \n \n27.0 \n \n74 \n \n27.0 \n \n67 \n \n23.0 \n \n75 \u0026 over \n \n100.0 \n \nGJRS LRS \n \nAge \n60 61 62 63-64 65-69 70-74 75 \n \nAnnual Rate of Retirement \n15.0 % 10.0 12.0 10.0 15.0 25.0 100.0 \n \nAge Annual Rate of Retirement \n \n60 \n \n10.0 % \n \n61 \n \n10.0 \n \n62 \n \n15.0 \n \n63 \n \n10.0 \n \n64 \n \n10.0 \n \n65 \n \n12.0 \n \nAge 66 67 68 69 70-74 75 \n \nAnnual Rate of Retirement 12.0 % 15.0 12.0 12.0 20.0 100.0 \n \n(continued) 118 \n \n Actuarial Section \nSummary of Actuarial Assumptions \nAnnual Rates of Retirement GMPF \n \nAge \n60 61 62 63 64 65 \u0026 over \n \nAnnual Rate of Retirement \n75.0 % 60.0 70.0 60.0 60.0 100.0 \n \n(continued) 119 \n \n Actuarial Section \nSummary of Actuarial Assumptions \nAnnual Rates of Retirement \n \nSEAD-OPEB ERS Members \nAge 50 52 55 57 60 62 65 67 70 75 \n \nOld Plan \n \nEarly Retirement Age 60 or 30 years \n \nMen 2.0 % 2.0 3.0 3.5 -- -- -- -- -- -- \n \nWomen 2.0 % 2.0 3.5 5.0 -- -- -- -- -- -- \n \nMen 7.5 % 7.5 7.5 \n10.5 15.0 32.0 35.0 35.0 35.0 100.0 \n \nWomen 6.0 % 6.0 \n10.0 10.0 20.0 40.0 40.0 35.0 35.0 100.0 \n \n34 years \n \nMore than 34 years \n \nMen 100.0 % 100.0 100.0 100.0 \n97.5 97.5 35.0 35.0 35.0 100.0 \n \nWomen 100.0 % 100.0 100.0 100.0 95.0 95.0 40.0 35.0 35.0 100.0 \n \nMen 90.0 % 90.0 75.0 70.0 40.0 40.0 35.0 35.0 35.0 100.0 \n \nWomen 100.0 % 100.0 90.0 70.0 55.0 65.0 40.0 35.0 35.0 100.0 \n \nNew Plan and GSEPS \n \nEarly Retirement \n \nNormal Retirement \n \nAge \n \nMen \n \nWomen \n \nMen* \n \nWomen** \n \n50 \n \n7.0 % \n \n4.5 % \n \n70.0 % \n \n50.0 % \n \n52 \n \n7.0 \n \n4.5 \n \n70.0 \n \n45.0 \n \n55 \n \n7.0 \n \n6.5 \n \n60.0 \n \n50.0 \n \n57 \n \n8.0 \n \n8.0 \n \n50.0 \n \n40.0 \n \n60 \n \n-- \n \n-- \n \n25.0 \n \n30.0 \n \n62 \n \n-- \n \n-- \n \n40.0 \n \n40.0 \n \n65 \n \n-- \n \n-- \n \n32.0 \n \n35.0 \n \n67 \n \n-- \n \n-- \n \n32.0 \n \n32.0 \n \n70 \n \n-- \n \n-- \n \n30.0 \n \n30.0 \n \n75 \n \n-- \n \n-- \n \n100.0 \n \n100.0 \n \n*An additional 10% of active male New Plan and GSEPS members less than age 55 and 20% between ages 55-59, inclusive, are expected to retire in the year in which they attain 30 years of service. \n \n**An additional 20% of active female New Plan and GSEPS members less than age 60 are expected to retire in the year in which they attain 30 years of service. \nLRS Members \n \nAge \n60 61 62 63-64 65-66 \n \nAnnual Rate of Retirement \n10.0 % 10.0 15.0 10.0 12.0 \n \nAge \n67 68-69 70-74 75 \n \nAnnual Rate of Retirement \n15.0 % 12.0 20.0 100.0 \n \n(continued) 120 \n \n Actuarial Section \nSummary of Actuarial Assumptions \nAnnual Rates of Retirement \n \nSEAD-OPEB GJRS Members \n \nAge \n60 61 62 63-64 65-66 67 68-69 70-74 75 \n \nAnnual Rate of Retirement \n15.0 % 10.0 12.0 10.0 15.0 15.0 15.0 25.0 100.0 \n \n(continued) 121 \n \n Actuarial Section \nSummary of Actuarial Assumptions \nAnnual Rates of Death After Retirement For all plans except PSERS, the RP-2000 Combined Mortality Table (projected to 2025 with projection scale BB and set forward two years for both males and females) is used for the period after retirement and for dependent beneficiaries. The RP-2000 Disabled Mortality Table (projected to 2025 with projection scale BB and and set back seven years for males and set forward three years for females) is used for the period after disability retirement. For PSERS, the RP-2000 Blue-Collar Mortality Table (projected to 2025 with projection scale BB and set forward three years for males and two years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table (projected to 2025 with projection scale BB and set forward five years for both males and females) is used for the period after disability retirement. For all plans, there is a margin for future mortality improvement in the tables. \nERS \n \nAge \n \nMen \n \nWomen \n \nAge \n \nMen \n \nWomen \n \n40 \n \n0.1127% 0.0790% \n \n65 \n \n1.1300% 0.8994% \n \n45 \n \n0.1609 \n \n0.1230 \n \n70 \n \n1.8697 \n \n1.5281 \n \n50 \n \n0.2474 \n \n0.1872 \n \n75 \n \n3.2147 \n \n2.5220 \n \n55 \n \n0.4246 \n \n0.2918 \n \n80 \n \n5.5160 \n \n4.1628 \n \n60 \n \n0.6985 \n \n0.4923 \n \n85 \n \n9.5631 \n \n7.1239 \n \nPSERS \n \nAge \n \nMen \n \nWomen \n \nAge \n \nMen \n \nWomen \n \n40 \n \n0.1476% 0.0995% \n \n65 \n \n1.4859 % 0.9774% \n \n45 \n \n0.1974 \n \n0.1484 \n \n70 \n \n2.4262 \n \n1.7054 \n \n50 \n \n0.3057 \n \n0.2084 \n \n75 \n \n3.9830 \n \n2.7288 \n \n55 \n \n0.5644 \n \n0.2844 \n \n80 \n \n6.5238 \n \n4.4542 \n \n60 \n \n0.9575 \n \n0.5014 \n \n85 \n \n10.9551 \n \n7.5727 \n \nGJRS \n \nAge \n \nMen \n \nWomen \n \nAge \n \nMen \n \nWomen \n \n40 \n \n0.1130% 0.0790% \n \n65 \n \n1.1300% 0.8994% \n \n45 \n \n0.1610 \n \n0.1230 \n \n70 \n \n1.8697 \n \n1.5281 \n \n50 \n \n0.2470 \n \n0.1872 \n \n75 \n \n3.2147 \n \n2.5220 \n \n55 \n \n0.4250 \n \n0.2918 \n \n80 \n \n5.5160 \n \n4.1628 \n \n60 \n \n0.6985 \n \n0.4923 \n \n85 \n \n9.5631 \n \n7.1239 \n \n(continued) 122 \n \n Actuarial Section \nSummary of Actuarial Assumptions \nAnnual Rates of Death After Retirement \nLRS \n \nAge \n \nMen \n \nWomen \n \nAge \n \n40 \n \n0.1127% 0.0790% \n \n65 \n \n45 \n \n0.1609 \n \n0.1230 \n \n70 \n \n50 \n \n0.2474 \n \n0.1872 \n \n75 \n \n55 \n \n0.4246 \n \n0.2918 \n \n80 \n \n60 \n \n0.6985 \n \n0.4923 \n \n85 \n \nGMPF \n \nSEAD-OPEB \n \nAge \n \nMen \n \nWomen \n \nAge \n \n40 \n \n0.1127% 0.0790% \n \n65 \n \n45 \n \n0.1609 \n \n0.1230 \n \n70 \n \n50 \n \n0.2474 \n \n0.1872 \n \n75 \n \n55 \n \n0.4246 \n \n0.2918 \n \n80 \n \n60 \n \n0.6985 \n \n0.4923 \n \n85 \n \nAge \n \nMen \n \nWomen \n \nAge \n \n40 \n \n0.1127% 0.0790% \n \n65 \n \n45 \n \n0.1609 \n \n0.1230 \n \n70 \n \n50 \n \n0.2474 \n \n0.1872 \n \n75 \n \n55 \n \n0.4246 \n \n0.2918 \n \n80 \n \n60 \n \n0.6985 \n \n0.4923 \n \n85 \n \nMen \n1.1300% 1.8697 3.2147 5.5160 9.5631 \n \nWomen \n0.8994% 1.5281 2.5220 4.1628 7.1239 \n \nMen \n1.1300% 1.8697 3.2147 5.5160 9.5631 \n \nWomen \n0.8994% 1.5281 2.5220 4.1628 7.1239 \n \nMen \n1.1300% 1.8697 3.2147 5.5160 9.5631 \n \nWomen \n0.8994% 1.5281 2.5220 4.1628 7.1239 \n \n123 \n \n Actuarial Section \nActive Members \n \nERS \n \nYear 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nActive Members 68,566 66,081 63,942 61,550 60,486 60,416 59,766 60,906 60,405 59,207 \n \nAnnual Payroll (in thousands) $ 2,571,042 \n2,486,780 2,414,884 2,335,773 2,315,625 2,352,920 2,384,358 2,546,492 2,634,129 2,611,965 \n \nAverage Pay $ 37,497 \n37,632 37,767 37,949 38,284 38,945 39,895 41,810 43,608 44,116 \n \nChange (0.1)% 0.4 0.4 0.5 0.9 1.7 2.4 4.8 4.3 1.2 \n \nPSERS PSERS is not a compensation based plan. \n \nYear \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nActive Members \n39,962 39,249 38,654 37,361 36,096 35,477 34,866 35,509 34,953 34,767 \n \nGJRS \n \nYear 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nActive Members 495 507 503 506 513 516 526 527 527 521 \n \nAnnual Payroll (in thousands) \n \n$ \n \n51,293 \n \n52,331 \n \n51,898 \n \n52,807 \n \n53,628 \n \n54,272 \n \n57,401 \n \n59,695 \n \n60,572 \n \n60,532 \n \nAverage Pay $ 103,622 \n103,216 103,177 104,362 104,539 105,178 109,128 113,273 114,937 116,184 \n \nChange (0.1)% (0.4) 0.0 1.1 0.2 0.6 3.8 3.8 1.5 1.1 \n \n(continued) 124 \n \n Actuarial Section \nActive Members \n \nLRS \n \nLRS is not a compensation based plan. \n \nYear \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nActive Members \n216 218 220 223 222 218 224 222 222 221 \n \nGMPF GMPF is not a compensation based plan. \n \nYear \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nActive Members \n13,032 13,776 13,526 13,573 13,469 13,754 13,850 13,037 13,804 13,711 \n \nSEAD-OPEB \n \nYear \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nActive Members \n62,305 55,516 49,261 43,512 39,101 35,189 32,076 29,024 26,224 23,499 \n \nNote: Payroll data on page 124 for fiscal year 2019 will not equal that which is presented in the Financial section in the Schedules of Employers' and Nonemployer Contributions on pages 70-71. Valuation data at that time was a snapshot of the valuation date, annualized for new hires, but does not include those who terminated during the year. \n \n125 \n \n Actuarial Section \nMember and Employer Contribution Rates \n \nERS \n \nYear \n2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nEmployer Rates \n \nMember \n \nOld Plan* New Plan \n \n1.25 % 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 \n \n10.41 % 11.63 14.90 18.46 21.96 24.72 24.69 24.69 24.66 24.66 \n \n10.41 % 11.63 14.90 18.46 21.96 24.72 24.69 24.69 24.66 24.66 \n \nGSEPS \n6.54 % 7.42 11.54 15.18 18.87 21.69 21.69 21.66 21.66 21.64 \n \n* Old Plan rate includes an employer pick-up of employee contributions. \n \nPSERS \n \nPre 7/1/12 Year \n2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nMember \n$ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year \n \nPost 7/1/12 Member \n \nEmployer \n \nn/a n/a n/a n/a n/a $ 90 per year $ 90 per year $ 90 per year $ 90 per year $ 90 per year \n \n$ 7,509,000 15,884,000 24,829,000 27,160,000 28,461,000 28,580,000 26,277,000 29,276,000 30,263,000 32,496,000 \n \nGJRS \n \nYear \n2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nMember \n7.50 % 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 \n \nEmployer \n3.85 % 3.90 3.90 4.23 6.98 12.19 10.48 7.17 7.83 9.13 \n \n126 \n \n(continued) \n \n Actuarial Section \nMember and Employer Contribution Rates \n \nLRS \n \nYear \n2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nMember \n8.50 % 8.50 8.50 8.50 8.50 8.50 8.50 8.50 8.50 8.50 \n \nEmployer \n \n$ \n \n75,000 \n \n75,000 \n \n128,000 \n \n45,000 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \nGMPF \n \nYear \n2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nMember \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n \nEmployer \n$ 1,282,000 1,521,000 1,703,000 1,892,000 1,893,369 1,989,530 2,017,875 2,377,312 2,537,272 2,611,590 \n \nSEAD-OPEB \n \nYear \n2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nMember - Old Plan Member - New Plan, LRS, GJRS \n \n0.45% 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45 \n \n0.23 % 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.23 \n \nEmployer \n-- % 0.61 0.27 \n-- -- -- -- -- -- -- \n \n127 \n \n Actuarial Section \nSchedules of Funding Progress - Defined Benefit Plans \n(in thousands) \n \nEmployees' Retirement System Public School Employees Retirement System1 Legislative Retirement System Georgia Judicial Retirement System \n \nActuarial Valuation \nDate \n6/30/2010 $ 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 \n6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 \n6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 \n6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 \n \nActuarial Value of Plan Assets \n(a) \n13,046,193 12,667,577 12,260,595 12,129,804 12,376,120 12,675,649 12,854,518 13,088,185 13,412,046 13,481,219 \n737,406 719,601 710,915 727,268 765,450 805,277 834,554 865,786 905,046 931,032 \n29,581 29,278 28,990 29,481 30,538 31,635 32,171 32,913 33,871 34,153 \n320,050 327,483 335,225 351,889 373,560 396,399 418,412 439,828 461,787 474,003 \n \nActuarial Accrued Liability (AAL) Entry-Age \n(b) \n$ 16,295,352 16,656,905 16,777,922 16,982,449 16,991,963 17,099,527 17,199,688 17,514,898 17,812,441 17,829,220 \n875,396 885,927 895,324 910,256 924,365 967,409 988,883 1,035,935 1,081,184 1,108,658 \n25,003 25,245 24,966 24,904 24,913 25,690 25,533 25,674 25,905 25,714 \n281,496 290,486 308,862 335,792 343,428 350,298 376,740 407,607 424,724 440,664 \n \nUnfunded AAL/ (Funded Excess) \n(b-a) \n \n$ \n \n3,249,159 \n \n3,989,348 \n \n4,517,327 \n \n4,852,645 \n \n4,615,843 \n \n4,423,878 \n \n4,345,170 \n \n4,426,713 \n \n4,400,395 \n \n4,348,001 \n \n137,990 166,326 184,409 182,988 158,915 162,132 154,329 170,149 176,138 177,626 \n \n(4,578) \n(4,033) (4,024) (4,577) (5,624) (5,945) (6,638) (7,239) (7,966) (8,439) \n \n(38,554) (36,997) (26,363) (16,097) (30,132) (46,101) (41,672) (32,221) (37,063) (33,339) \n \nFunded Ratio (a/b) \n80.1 % $ 76.0 73.1 71.4 72.8 74.1 74.7 74.7 75.3 75.6 \n84.2 81.2 79.4 79.9 82.8 83.2 84.4 83.6 83.7 84.0 \n118.3 116.0 116.1 118.4 122.6 123.1 126.0 128.2 130.7 132.8 \n113.7 112.7 108.5 104.8 108.8 113.2 111.1 107.9 108.7 107.6 \n \nAnnual Covered Payroll \n(c) \n2,571,042 2,486,780 2,414,884 2,335,773 2,315,625 2,352,920 2,384,358 2,546,492 2,634,129 2,611,965 \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n3,745 3,780 3,815 3,867 3,850 3,764 3,875 3,830 3,844 3,833 \n51,293 52,331 51,898 52,807 53,628 54,272 57,401 59,695 60,572 60,532 \n \n128 \n \nUnfunded AAL/ (Funded Excess) as Percentage of Covered Payroll \n[(b-a)/c] \n126.4 % 160.4 187.1 207.8 199.3 188.0 182.2 173.8 167.1 166.5 \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n(122.2) (106.7) (105.5) (118.4) (146.1) (157.9) (171.3) (189.0) (207.2) (220.2) \n(75.2) (70.7) (50.8) (30.5) (56.2) (84.9) (72.6) (54.0) (61.2) (55.1) \n(continued) \n \n Actuarial Section \nSchedules of Funding Progress - Defined Benefit Plans \n(in thousands) \n \nGeorgia Military Pension Fund2 \n \nActuarial Valuation \nDate \n6/30/2010 $ 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 \n \nActuarial Value of Plan Assets \n(a) \n7,558 8,702 10,087 12,131 14,264 16,446 18,414 20,604 23,362 26,119 \n \nActuarial Accrued Liability (AAL) Entry-Age \n(b) \n \n$ \n \n23,773 \n \n26,767 \n \n28,231 \n \n30,056 \n \n31,815 \n \n35,213 \n \n38,211 \n \n40,731 \n \n43,622 \n \n45,790 \n \nUnfunded AAL/ (Funded Excess) \n(b-a) \n \n$ \n \n16,215 \n \n18,065 \n \n18,144 \n \n17,925 \n \n17,551 \n \n18,767 \n \n19,797 \n \n20,127 \n \n20,260 \n \n19,671 \n \nFunded Ratio (a/b) \n31.8 % 32.5 35.7 40.4 44.8 46.7 48.2 50.6 53.6 57.0 \n \nAnnual Covered Payroll \n(c) \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n \nUnfunded AAL/ (Funded Excess) as Percentage of Covered Payroll \n[(b-a)/c] \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n \nThis data, except for annual covered payroll, was provided by the System's actuary. \n No statistics regarding covered payroll are available. Contributions are not based on members' salaries, but are simply $4.00 per month, per member for nine months each fiscal year if hired prior to July 1, 2012 and $10 per month, per member for nine months if hired after July 1, 2012.  No statistics regarding covered payroll are available. Active and inactive plan member information is maintained by the Georgia Department of Defense. \nNote: Payroll data on page 128 for fiscal year 2019 will not equal that which is presented in the Financial section in the Schedules of Employers' and Nonemployer Contributions on pages 70-71. Valuation data at that time was a snapshot of the valuation date, annualized for new hires, but does not include those who terminated during the year. \n \n129 \n \n Actuarial Section \nSchedule of Retirees Added to and Removed from Rolls \n \nERS \n \nYear Ended 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nAdded to Rolls \n \nRemoved from Rolls Roll End of Year \n \nNumber 2,665 2,797 2,956 3,664 2,440 2,656 2,572 2,630 2,612 2,777 \n \nAnnual Allowances (in thousands) \n \n$ \n \n70,383 \n \n69,031 \n \n71,464 \n \n88,855 \n \n51,178 \n \n54,003 \n \n51,031 \n \n45,833 \n \n50,005 \n \n58,673 \n \nNumber 1,051 1,170 1,305 1,176 1,059 1,350 1,342 1,420 1,422 1,357 \n \nAnnual Allowances (in thousands) $ 22,413 \n25,347 27,696 26,334 22,997 30,927 30,724 32,372 33,530 32,574 \n \nNumber 38,582 40,209 41,860 44,348 45,729 47,035 48,265 49,475 50,665 52,085 \n \nAnnual Allowances (in thousands) $ 1,110,728 1,154,412 1,198,180 1,260,701 1,288,882 1,311,958 1,332,265 1,345,726 1,362,201 1,388,300 \n \n% Increase in Annual Allowance \n4.5 % 3.9 3.8 5.2 2.2 1.8 1.5 1.0 1.2 1.9 \n \nAverage Annual Allowances \n \n$ \n \n28,789 \n \n28,710 \n \n28,624 \n \n28,427 \n \n28,185 \n \n27,893 \n \n27,603 \n \n27,200 \n \n26,886 \n \n26,655 \n \nPSERS \n \nYear Ended 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nAdded to Rolls \n \nRemoved from Rolls Roll End of Year \n \nNumber 1,001 1,174 1,133 1,298 1,345 1,247 1,363 1,253 1,258 1,301 \n \nAnnual Allowances (in thousands) \n \n$ \n \n4,494 \n \n3,168 \n \n3,192 \n \n3,803 \n \n3,749 \n \n3,482 \n \n3,927 \n \n4,322 \n \n5,436 \n \n5,319 \n \nNumber 642 731 684 650 647 690 763 756 885 795 \n \nAnnual Allowances (in thousands) $ 2,666 \n3,072 2,834 2,738 2,604 2,679 2,890 2,927 3,354 3,101 \n \nNumber 14,157 14,600 15,049 15,697 16,395 16,952 17,552 18,049 18,422 18,928 \n \nAnnual Allowances (in thousands) \n \n$ \n \n53,663 \n \n53,759 \n \n54,117 \n \n55,182 \n \n56,327 \n \n57,130 \n \n58,167 \n \n59,562 \n \n61,644 \n \n63,862 \n \n% Increase in Annual Allowance \n3.5 % 0.2 0.7 2.0 2.1 1.4 1.8 2.4 3.5 3.6 \n \nAverage Annual Allowances \n \n$ \n \n3,791 \n \n3,682 \n \n3,596 \n \n3,515 \n \n3,436 \n \n3,370 \n \n3,314 \n \n3,300 \n \n3,346 \n \n3,374 \n \nGJRS \n \nAdded to Rolls \n \nRemoved from Rolls Roll End of Year \n \nYear Ended 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nNumber 16 15 22 42 23 21 13 62 23 52 \n \nAnnual Allowances (in thousands) \n \n$ \n \n933 \n \n1,168 \n \n1,732 \n \n2,763 \n \n1,175 \n \n1,416 \n \n919 \n \n5,304 \n \n1,950 \n \n3,435 \n \nNumber 10 2 8 13 9 11 5 10 12 12 \n \nAnnual Allowances (in thousands) $ 508 \n105 405 629 326 561 269 771 558 562 \n \nNumber 207 220 234 263 277 287 295 347 358 398 \n \nAnnual Allowances (in thousands) \n \n$ \n \n12,437 \n \n13,500 \n \n14,827 \n \n16,961 \n \n17,810 \n \n18,665 \n \n19,315 \n \n23,848 \n \n25,240 \n \n28,113 \n \n% Increase in Annual Allowance \n3.5 % \n8.5 9.8 14.4 5.0 4.8 3.5 23.5 5.8 11.4 \n \nAverage Annual Allowances \n \n$ \n \n60,082 \n \n61,364 \n \n63,363 \n \n64,490 \n \n64,296 \n \n65,035 \n \n65,475 \n \n68,726 \n \n70,503 \n \n70,636 \n \n(continued) 130 \n \n Actuarial Section \nSchedule of Retirees Added to and Removed from Rolls \n \nLRS \n \nAdded to Rolls \n \nRemoved from Rolls Roll End of Year \n \nYear Ended 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nNumber 10 18 10 32 6 13 9 13 11 14 \n \nAnnual Allowances (in thousands) \n \n$ \n \n106 \n \n104 \n \n66 \n \n200 \n \n30 \n \n87 \n \n58 \n \n80 \n \n57 \n \n82 \n \nNumber 3 \n10 11 15 \n7 12 13 \n6 7 12 \n \nAnnual Allowances (in thousands) \n \n$ \n \n36 \n \n86 \n \n82 \n \n140 \n \n61 \n \n112 \n \n111 \n \n74 \n \n56 \n \n96 \n \nNumber 236 244 243 260 259 260 256 263 267 269 \n \nAnnual Allowances (in thousands) $ 1,772 \n1,790 1,774 1,834 1,803 1,778 1,725 1,731 1,732 1,718 \n \n% Increase in Annual Allowance \n4.1 % 1.0 (0.9) 3.4 (1.7) (1.4) (3.0) 0.3 0.4 (0.8) \n \nAverage Annual Allowances $ 7,508 \n7,336 7,300 7,054 6,961 6,838 6,738 6,582 6,489 6,386 \n \nGMPF \n \nAdded to Rolls \n \nRemoved from Rolls Roll End of Year \n \nYear Ended 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nNumber 92 94 95 83 62 54 79 83 97 91 \n \nAnnual Allowances (in thousands) \n \n$ \n \n100 \n \n101 \n \n106 \n \n87 \n \n68 \n \n55 \n \n82 \n \n90 \n \n106 \n \n94 \n \nNumber 1 3 3 5 5 6 9 \n11 7 \n18 \n \nAnnual Allowances (in thousands) \n \n$ \n \n1 \n \n4 \n \n3 \n \n5 \n \n6 \n \n5 \n \n9 \n \n11 \n \n8 \n \n20 \n \nNumber 477 568 660 738 795 843 913 985 \n1,075 1,148 \n \nAnnual Allowances (in thousands) \n \n$ \n \n520 \n \n617 \n \n720 \n \n802 \n \n864 \n \n914 \n \n987 \n \n1,066 \n \n1,164 \n \n1,238 \n \n% Increase in Annual Allowance \n23.5 % 18.7 16.7 11.4 \n7.7 5.8 8.0 8.0 9.2 6.4 \n \nAverage Annual Allowances \n \n$ \n \n1,090 \n \n1,086 \n \n1,091 \n \n1,087 \n \n1,087 \n \n1,084 \n \n1,081 \n \n1,082 \n \n1,083 \n \n1,078 \n \nSEAD-OPEB is a post-employment life insurance plan which does not have annuity payments. \n \n131 \n \n Actuarial Section \nAnalysis of Change in Unfunded Accrued Liability (UAL) \n \nERS \nInterest (7.30) added to previous UAL Accrued liability contribution Experience: \nValuation asset growth Pensioners' mortality Turnover and retirements New entrants Salary increases Method changes Amendments (COLAs) Assumption changes Programming modification Data changes Misc. changes \nTotal \n \n2019 \n \n2018 \n \n2017 \n \n2016 \n \n2015 \n \n2014 \n \n2013 \n \nAmount of Increase (Decrease) (in millions) \n \n2012 \n \n2011 \n \n2010 \n \n$ \n \n321.2 $ \n \n327.6 $ \n \n325.9 $ \n \n331.8 $ \n \n346.2 $ \n \n363.9 $ \n \n338.8 $ \n \n299.2 $ \n \n243.7 $ \n \n(567.4) \n \n(574.4) \n \n(551.0) \n \n(514.7) \n \n(419.4) \n \n(321.7) \n \n(239.1) \n \n(147.7) \n \n(122.9) \n \n169.8 (89.4) \n \n108.6 (1.2) 40.7 9.6 \n(43.5) -- \n61.2 -- -- \n18.4 -- \n \n(130.4) 2.6 \n58.7 12.4 53.5 \n-- 39.2 161.1 \n-- 15.3 \n8.1 \n \n(48.6) 9.0 \n39.9 7.8 \n127.5 -- \n28.9 158.3 \n-- (16.2) \n-- \n \n$ \n \n(52.4) $ \n \n(26.3) $ \n \n81.5 $ \n \n8.5 12.8 43.6 \n7.8 (0.6) \n-- 28.4 \n-- -- 3.6 0.1 \n(78.7) $ \n \n(198.9) 13.9 50.8 10.3 (89.6) -- -- 80.4 -- 14.4 (0.1) \n(192.0) $ \n \n(228.9) 60.4 45.5 9.3 \n(159.4) -- -- -- -- \n(6.0) 0.1 \n(236.8) $ \n \n253.7 20.6 \n103.7 14.1 (46.8) \n(128.3) -- -- -- \n18.7 (0.1) \n335.3 $ \n \n396.3 15.5 93.8 12.1 (74.2) -- \n(118.8) -- \n26.3 12.9 12.6 \n528.0 $ \n \n433.6 16.4 91.4 28.4 49.0 -- -- -- (28.7) 9.1 20.2 \n740.2 $ \n \n710.1 49.2 \n118.4 15.0 \n(259.2) -- -- \n250.7 -- \n(2.4) 22.5 \n984.7 \n \nPSERS \nInterest (7.30) added to previous UAL \nAccrued liability contribution Experience: \nValuation asset growth Pensioners' mortality Turnover and retirements New entrants Method changes Amendments COLAs Assumption changes Data Changes Allotment for Expenses Misc. changes \nTotal \n \nAmount of Increase (Decrease) (in thousands) \n \n$ 12,858.1 $ 12,591.0 $ 11,574.7 $ 12,159.9 $ 11,918.7 $ 13,724.1 $ 13,830.7 $ (18,303.2) (17,584.7) (15,278.9) (17,394.7) (17,704.8) (15,915.4) (12,497.7) \n \n12,474.4 $ (4,843.8) \n \n10,349.3 $ 4,022.8 \n \n4,021.0 6,403.4 \n \n5,770.0 (1,104.1) \n(859.2) 3,701.8 \n-- 12,551.0 (8,832.0) \n-- 110.9 \n-- (4,405.3) \n \n(8,805.0) (2,859.3) (1,024.6) 3,206.8 \n-- 16,292.1 (6,469.5) 10,995.2 \n-- -- (352.4) \n \n(3,247.0) (308.6) (879.7) 4,334.7 -- \n15,892.7 (6,786.4) 10,547.5 \n-- -- (29.5) \n \n$ 1,488.0 $ 5,989.6 $ 15,819.5 $ \n \n841.0 (643.8) (228.2) 2,798.1 \n-- -- (5,492.0) -- -- -- 157.2 \n \n(12,207.0) 414.9 \n2,618.5 2,875.9 \n-- -- (14,772.9) 30,030.0 -- -- 43.0 \n \n(14,071.0) 1,286.7 2,580.8 2,786.0 -- -- \n(14,398.9) -- -- -- \n(64.9) \n \n13,868.0 (381.9) 4,772.4 2,757.7 \n(9,259.0) -- \n(14,813.1) -- -- -- \n301.7 \n \n21,922.0 (1,149.5) 4,974.5 2,783.8 \n-- -- (20,664.9) -- -- -- 2,586.9 \n \n24,002.0 (3,000.5) 3,403.6 3,167.0 \n-- -- (16,603.6) -- -- 2,122.7 872.4 \n \n39,729.0 (828.9) \n12,375.8 3,047.8 -- -- \n(14,121.2) 33,717.7 (2,192.3) \n2,029.0 195.0 \n \n(7,802.5) $ 3,216.3 $ (24,072.6) $ (1,421.2) $ 18,083.4 $ 28,335.7 $ 84,376.3 \n \n(continued) 132 \n \n Actuarial Section \nAnalysis of Change in Unfunded Accrued Liability (UAL) \n \nGJRS \nInterest (7.30) added to previous UAL \nAccrued liability contribution Experience: \nValuation asset growth Pensioners' mortality Turnover and retirements New entrants Salary increases Method changes Amendments (COLAs) Assumption changes Data changes Programming modification Misc. changes \nTotal \n \n2019 \n \n2018 \n \n2017 \n \n2016 \n \n2015 \n \n2014 \n \n2013 \n \nAmount of Increase (Decrease) (in thousands) \n \n2012 \n \n2011 \n \n2010 \n \n$ (2,705.6) $ (2,416.5) $ (3,125.4) $ (3,457.6) $ (2,259.9) $ (1,207.3) $ (1,977.2) $ (2,774.8) $ (2,891.5) $ (2,636.2) \n \n3,085.8 \n \n2,005.4 \n \n1,245.0 \n \n(746.2) \n \n3,754.1 \n \n5,803.3 \n \n5,187.8 \n \n4,710.8 \n \n4,079.8 \n \n4,592.1 \n \n2,721.4 1,456.8 1,100.3 1,774.9 (5,839.7) \n-- 645.9 \n-- 1,484.4 \n-- -- \n \n(4,346.6) 543.1 (162.6) 338.7 \n(5,756.8) -- \n993.1 3,696.0 \n-- -- 263.6 \n \n(1,538.9) (339.7) 2,307.0 2,353.1 187.7 -- 3,345.4 3,615.6 -- -- 1,402.0 \n \n$ 3,724.2 $ (4,842.6) $ 9,451.8 $ \n \n562.3 1,530.2 \n872.4 1,190.9 \n209.7 -- \n3,179.6 -- -- -- \n1,086.9 \n \n(5,855.8) 639.6 (370.0) \n1,539.1 (8,848.5) \n-- -- (5,030.9) -- -- 464.1 \n \n(6,807.0) 2,138.5 (5,962.8) 1,272.3 (10,382.5) \n-- -- -- -- -- 1,110.1 \n \n4,949.6 533.8 \n3,941.4 3,138.0 (4,620.6) (6,827.0) \n-- -- -- 4,606.4 1,333.8 \n \n8,638.5 376.9 \n2,080.7 442.3 \n(4,536.5) -- \n(870.0) -- -- \n1,648.9 917.5 \n \n9,404.0 2,076.8 (276.3) \n750.1 1,265.9 \n-- -- -- -- -- (12,852.1) \n \n16,228.0 560.9 \n2,290.6 -- \n(10,213.5) -- -- \n(14,826.5) 579.1 -- 21.3 \n \n4,428.2 $ (15,968.2) $ (14,035.4) $ 10,266.0 $ 10,634.3 $ 1,556.7 $ (3,404.2) \n \nLRS \nInterest (7.30) added to previous UAL Accrued liability contribution Experience: \nValuation asset growth Pensioners' mortality Turnover and retirements New entrants Method changes Amendments No COLAs Assumption changes Data changes Misc. changes \nTotal \n \nAmount of Increase (Decrease) (in thousands) \n \n$ \n \n(581.5) $ \n \n(535.7) $ \n \n(497.8) $ \n \n(445.9) $ \n \n(421.9) $ \n \n(343.3) $ \n \n(301.8) $ \n \n(302.5) $ \n \n(343.4) $ \n \n(508.5) \n \n315.2 \n \n322.9 \n \n250.3 \n \n338.3 \n \n173.4 \n \n161.9 \n \n(62.4) \n \n33.9 \n \n107.1 \n \n(32.5) \n \n245.1 29.6 \n(180.7) 57.2 -- \n101.9 (457.4) \n-- (3.6) 0.9 \n \n(342.2) 118.3 (175.2) \n16.7 -- \n67.6 (462.8) 229.1 \n-- 34.8 \n \n(129.2) 245.9 (257.7) \n99.2 -- \n50.4 (458.3) 223.7 \n-- (127.9) \n \n24.1 (66.1) (198.9) 26.8 \n-- 51.5 (418.2) \n-- -- (4.7) \n \n(491.6) (50.8) (10.1) 35.1 -- -- \n(452.6) 852.3 \n-- 46.2 \n \n(576.5) 323.8 (347.5) 135.2 \n-- -- (470.8) -- -- 69.9 \n \n513.9 (29.6) 17.4 144.5 (418.0) (488.1) \n-- -- -- 71.1 \n \n829.0 19.1 (84.3) 16.9 -- \n(549.7) -- -- -- \n46.4 \n \n906.2 (18.7) 254.5 74.0 \n-- (481.8) \n-- -- -- 46.9 \n \n1,534.0 339.2 105.1 98.8 -- (465.3) -- 975.2 114.8 41.6 \n \n$ \n \n(473.3) $ \n \n(726.5) $ \n \n(601.5) $ \n \n(693.1) $ \n \n(320.0) $ (1,047.3) $ \n \n(553.1) $ \n \n8.8 $ \n \n544.9 $ 2,202.4 \n \n(continued) 133 \n \n Actuarial Section \nAnalysis of Change in Unfunded Accrued Liability (UAL) \n \nGMPF* \nInterest (7.30) added to previous UAL Accrued liability contribution Experience: \nValuation asset growth Pensioners' mortality Turnover and retirements New entrants Method changes Assumption changes Expense deficit Misc. changes \n \n2019 \n \n2018 \n \n2017 \n \n2016 \n \n2015 \n \n2014 \n \nAmount of Increase (Decrease) (in thousands) \n \n2013 \n \n2012 \n \n2011 \n \n$ 1,479.0 $ 1,489.4 $ 1,484.8 $ 1,407.5 $ 1,316.3 $ 1,344.3 $ 1,360.8 $ 1,354.9 $ 1,216.1 \n \n(2,285.4) \n \n(2,140.6) \n \n(1,747.5) \n \n(1,698.6) \n \n(1,765.6) \n \n(1,775.3) \n \n(1,661.5) \n \n(1,502.4) \n \n(1,173.3) \n \n68.0 (20.1) (17.0) 179.1 \n-- -- -- (3.0) \n \n(181.0) 40.7 \n143.1 208.9 \n-- 570.2 \n-- 2.6 \n \n(50.0) (109.2) \n11.0 138.9 \n-- 537.6 \n-- 64.2 \n \n59.0 119.3 233.3 165.1 \n-- -- -- 744.4 \n \n(203.0) 126.1 120.5 236.9 \n-- 985.8 \n-- 398.7 \n \n(247.0) 88.8 (87.9) \n142.6 -- -- -- \n161.1 \n \n39.3 80.2 186.4 137.8 (393.0) \n-- -- 30.6 \n \n107.0 68.3 17.9 \n127.1 -- -- -- \n(93.6) \n \n113.8 58.5 \n205.4 1,469.6 \n-- -- 37.0 (77.0) \n \nTotal \n \n$ \n \n(589.0) $ \n \n133.3 $ \n \n329.8 $ 1,030.0 $ 1,215.7 $ \n \n(373.4) $ \n \n(219.4) $ \n \n79.2 $ 1,850.1 \n \n*Note: Data prior to 2011 is not available for GMPF. \n \nSEAD-OPEB: Data is not available. \n \n134 \n \n Actuarial Section \nSolvency Test Results \n(in thousands) \nERS \n \nActuarial Valuation as of 6/30 \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n \nActive Member \n \nRetirants \u0026 \n \n(Employer \n \nBeneficiaries Funded Portion) \n \nValuation Assets \n \n(1) \n \n(2) \n \n(3) \n \n$ 551,607 $ 10,652,040 $ 5,091,705 $ 13,046,193 \n \n503,867 \n \n11,058,344 \n \n5,094,694 \n \n12,667,557 \n \n460,861 \n \n11,420,011 \n \n4,897,050 \n \n12,260,595 \n \n405,841 \n \n11,935,364 \n \n4,641,244 \n \n12,129,803 \n \n385,058 \n \n12,108,737 \n \n4,498,168 \n \n12,376,120 \n \n367,462 \n \n12,520,321 \n \n4,211,744 \n \n12,675,649 \n \n368,281 \n \n12,592,980 \n \n4,238,427 \n \n12,854,518 \n \n368,935 \n \n12,729,977 \n \n4,415,986 \n \n13,088,185 \n \n372,375 \n \n12,927,796 \n \n4,512,270 \n \n13,412,046 \n \n371,147 \n \n13,077,253 \n \n4,380,820 \n \n13,481,219 \n \nPSERS \n \nActuarial Valuation as of 6/30 \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n \nRetirants \u0026 Beneficiaries \n \n(1) \n \n(2) \n \n$ \n \n16,361 $ 528,808 \n \n16,627 \n \n532,509 \n \n16,917 \n \n537,284 \n \n17,016 \n \n549,796 \n \n16,995 \n \n566,344 \n \n17,196 \n \n585,471 \n \n17,413 \n \n609,807 \n \n18,077 \n \n640,197 \n \n18,570 \n \n674,222 \n \n19,109 \n \n695,624 \n \nActive Member (Employer \nFunded Portion) \n \nValuation Assets \n \n(3) \n \n$ 330,227 $ 737,406 \n \n336,790 \n \n719,601 \n \n341,123 \n \n710,915 \n \n343,444 \n \n727,268 \n \n341,026 \n \n765,450 \n \n364,742 \n \n805,277 \n \n361,663 \n \n834,554 \n \n377,661 \n \n865,786 \n \n388,392 \n \n905,046 \n \n393,925 \n \n931,032 \n \nGJRS \n \nActuarial Valuation as of 6/30 \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n \nRetirants \u0026 Beneficiaries \n \n(1) \n \n(2) \n \n$ \n \n67,293 $ 117,730 \n \n71,047 \n \n128,991 \n \n73,998 \n \n141,880 \n \n73,949 \n \n162,364 \n \n80,007 \n \n162,527 \n \n84,170 \n \n174,147 \n \n91,991 \n \n180,107 \n \n84,841 \n \n220,738 \n \n88,890 \n \n231,811 \n \n85,722 \n \n256,060 \n \nActive Member (Employer \nFunded Portion) \n \nValuation Assets \n \n(3) \n \n$ \n \n96,473 $ 320,050 \n \n90,440 \n \n327,483 \n \n92,984 \n \n335,225 \n \n99,479 \n \n351,889 \n \n100,894 \n \n373,560 \n \n91,981 \n \n396,399 \n \n104,642 \n \n418,412 \n \n102,028 \n \n439,828 \n \n104,023 \n \n461,787 \n \n98,882 \n \n474,003 \n \n135 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n100.0 % 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 \n \n(2) \n100.0 % 100.0 100.0 \n98.2 99.0 98.3 99.2 99.9 100.0 100.0 \n \n(3) \n36.2 % 21.7 \n7.8 -- -- -- -- -- 2.5 0.7 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n100.0 % 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 \n \n(2) \n100.0 % 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 \n \n(3) \n58.2 % 50.6 45.9 46.7 53.4 55.5 57.3 54.9 54.6 54.9 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n100.0 % 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 \n \n(2) \n100.0 % 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 \n \n(3) \n100.0 % 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 \n \n(continued) \n \n Actuarial Section \nSolvency Test Results \n(in thousands) \nLRS \n \nActuarial Valuation as of 6/30 \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n \nActive Member \n \nRetirants \u0026 \n \n(Employer \n \nBeneficiaries Funded Portion) \n \nValuation Assets \n \n(1) \n \n$ \n \n3,166 \n \n$ \n \n2,921 \n \n3,185 \n \n2,951 \n \n3,430 \n \n3,287 \n \n3,630 \n \n3,543 \n \n3,862 \n \n3,664 \n \n(2) \n \n(3) \n \n19,208 $ \n \n2,629 \n \n$ \n \n19,759 \n \n2,564 \n \n19,200 \n \n2,581 \n \n19,623 \n \n2,330 \n \n19,006 \n \n2,477 \n \n19,873 \n \n2,530 \n \n19,202 \n \n2,701 \n \n19,382 \n \n2,749 \n \n19,048 \n \n2,995 \n \n19,204 \n \n2,846 \n \n29,581 29,278 28,990 29,481 30,538 31,635 32,171 32,913 33,871 34,153 \n \nGMPF \n \nActuarial Valuation as of 6/30 \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n \nRetirants \u0026 Beneficiaries \n \n(1) \n \n$ \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n(2) \n \n$ \n \n14,015 \n \n15,379 \n \n17,518 \n \n19,396 \n \n21,389 \n \n24,075 \n \n26,337 \n \n28,867 \n \n30,964 \n \n33,435 \n \nActive Member (Employer \nFunded Portion) \n \nValuation Assets \n \n(3) \n \n$ \n \n9,758 \n \n$ \n \n11,388 \n \n10,713 \n \n10,660 \n \n10,426 \n \n11,138 \n \n11,874 \n \n11,864 \n \n12,658 \n \n12,355 \n \n7,558 8,702 10,087 12,131 14,264 16,446 18,414 20,604 23,362 26,119 \n \nSEAD-OPEB \n \nActuarial Valuation as of 6/30 \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n \nRetirants \u0026 Beneficiaries \n \n(1) \n \n$ \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n(2) \n$ 516,633 503,327 528,165 586,228 621,502 621,426 652,291 693,118 735,214 772,657 \n \nActive Member (Employer \nFunded Portion) \n \nValuation Assets \n \n(3) \n$ 174,368 175,093 176,452 168,558 166,518 148,321 180,078 183,468 183,943 174,082 \n \n$ \n \n680,449 \n \n807,893 \n \n818,284 \n \n907,831 \n \n1,037,901 \n \n1,046,559 \n \n1,028,541 \n \n1,121,251 \n \n1,189,462 \n \n1,233,856 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n100.0 % 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 \n \n(2) \n100.0 % 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 \n \n(3) \n100.0 % 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n \n(2) \n \n(3) \n \nn/a \n \n53.9 % \n \n-- % \n \nn/a \n \n56.6 \n \n-- \n \nn/a \n \n57.6 \n \n-- \n \nn/a \n \n62.5 \n \n-- \n \nn/a \n \n66.7 \n \n-- \n \nn/a \n \n68.3 \n \n-- \n \nn/a \n \n69.9 \n \n-- \n \nn/a \n \n71.4 \n \n-- \n \nn/a \n \n75.4 \n \n-- \n \nn/a \n \n78.1 \n \n-- \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n \n(2) \n \n(3) \n \nn/a \n \n100.0 % \n \n93.9 % \n \nn/a \n \n100.0 \n \n100.0 \n \nn/a \n \n100.0 \n \n100.0 \n \nn/a \n \n100.0 \n \n100.0 \n \nn/a \n \n100.0 \n \n100.0 \n \nn/a \n \n100.0 \n \n100.0 \n \nn/a \n \n100.0 \n \n100.0 \n \nn/a \n \n100.0 \n \n100.0 \n \nn/a \n \n100.0 \n \n100.0 \n \nn/a \n \n100.0 \n \n100.0 \n \n136 \n \n Statistical Section \nCelebrating Together \nERSGA 70th Anniversary Party See the Appendix for kind words from our members and retirees. \n \n Statistical Section \nIntroduction \nThe objective of the statistical section is to provide a historical perspective, context and relevant details to assist readers in evaluating the condition of the plans. All non-accounting data is taken from the System's internal sources except for information which is derived from the actuarial valuations. Due to the adoption of GASB 74 in FY2017, historical detail may not be complete for the Schedule of Revenue and Expense and will be added each year. Statistical information is not presented for SCJRF and DARF as both plans are immaterial, have no active members, and are closed to new members. \nFiduciary Funds Financial Trends \nThe following schedules have been included to help the reader understand how the System's financial position has changed over the past 10 years: \nAdditions by Source Deductions by Type Changes in Fiduciary Net Position Operational Trends The following schedules have been included to help the readers understand how the System's financial report relates to the services provided by the System and the activities it performs: Retiree Information Withdrawal (Refund) Data New Retiree Elections Principal Participating Employers Statistical Data as of June 30, 2020 \nProprietary Fund \nSchedule of Revenue and Expenses 10-year Schedule of Membership \n138 \n \n Statistical Section \n \nAdditions by Source - Contribution/Investment Income \n(in thousands) \n \nERS Member Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \n \n2011 \n \n2012 \n \n2013 \n \n2014 \n \n2015 \n \n2016 \n \n2017 \n \n2018 \n \n2019 \n \n2020 \n \n$ 39,480 $ 36,561 $ 38,955 $ 32,423 $ 33,713 $ 31,961 $ 35,863 $ 37,130 $ 36,252 $ 35,837 \n \n261,132 274,034 358,992 418,807 505,668 583,082 613,201 639,302 638,989 634,108 \n \n-- \n \n-- \n \n-- \n \n10,945 \n \n12,495 \n \n12,484 \n \n12,080 \n \n12,865 \n \n10,220 \n \n9,749 \n \n2,269,270 231,782 1,495,849 2,021,748 474,147 141,292 1,475,626 1,166,013 873,404 703,840 \n \n-- \n \n-- \n \n-- \n \n-- \n \n10 \n \n10 \n \n10 \n \n10 \n \n10 \n \n10 \n \nTotal Additions to (Deductions from) Fiduciary Net Position \nPSERS Member Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \n \n$2,569,882 $ 542,377 $1,893,796 $2,483,923 $1,026,033 $ 768,829 $2,136,780 $1,855,320 $1,558,875 $1,383,544 \n \n$ 1,451 $ 7,509 -- \n128,096 -- \n \n1,426 $ 15,884 \n-- 13,554 \n-- \n \n1,538 $ 1,659 $ \n \n24,829 \n \n-- \n \n-- \n \n27,160 \n \n88,067 123,799 \n \n-- \n \n-- \n \n1,800 $ -- \n28,461 30,129 \n-- \n \n1,925 $ -- \n28,580 9,809 -- \n \n2,084 $ -- \n26,277 97,715 \n-- \n \n2,162 $ -- \n29,276 78,418 \n-- \n \n2,256 $ -- \n30,263 60,553 \n-- \n \n2,338 -- \n32,496 49,913 \n-- \n \nTotal Additions to (Deductions from) Fiduciary Net Position \nGJRS Member Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \n \n$ 137,056 $ 30,864 $ 114,434 $ 152,618 $ 60,390 $ 40,314 $ 126,076 $ 109,856 $ 93,072 $ 84,747 \n \n$ 4,721 $ 1,163 -- \n57,330 -- \n \n4,904 $ 2,083 \n-- 6,571 \n-- \n \n4,408 $ 2,279 \n-- 42,104 \n-- \n \n4,731 $ 1,373 1,002 60,012 \n-- \n \n5,061 $ 2,696 1,564 14,697 \n-- \n \n5,507 $ 4,754 2,869 5,055 \n-- \n \n4,906 $ 4,081 2,603 49,259 \n-- \n \n4,910 $ 4,725 1,841 39,877 \n-- \n \n5,469 $ 3,117 2,137 30,827 \n-- \n \n5,005 4,022 2,442 25,414 \n-- \n \nTotal Additions to (Deductions from) Fiduciary Net Position \nLRS Member Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \n \n$ 63,214 $ 13,558 $ 48,791 $ 67,118 $ 24,018 $ 18,185 $ 60,849 $ 51,353 $ 41,550 $ 36,883 \n \n$ \n \n320 $ \n \n75 \n \n-- \n \n5,194 \n \n-- \n \n323 $ 76 -- \n550 -- \n \n373 $ 128 \n-- 3,573 \n-- \n \n282 $ 45 -- \n4,969 -- \n \n327 $ -- -- \n1,189 -- \n \n328 $ -- -- \n363 -- \n \n327 $ -- -- \n3,741 -- \n \n323 $ -- -- \n2,962 -- \n \n339 $ -- -- \n2,228 -- \n \n325 -- -- \n1,824 -- \n \nTotal Additions to (Deductions from) Fiduciary Net Position \n \n$ 5,589 $ \n \n949 $ 4,074 $ 5,296 $ 1,516 $ \n \n691 $ 4,068 $ 3,285 $ 2,567 $ 2,149 \n \n(continued) 139 \n \n Statistical Section \n \nAdditions by Source - Contribution/Investment Income \n(in thousands) \n \nGMPF \nMember Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \n \n2011 \n \n2012 \n \n2013 \n \n2014 \n \n2015 \n \n2016 \n \n2017 \n \n2018 \n \n2019 \n \n2020 \n \n$ \n \n-- $ \n \n-- $ \n \n-- $ \n \n-- $ \n \n-- $ \n \n-- $ \n \n1,282 \n \n1,521 \n \n1,703 \n \n1,892 \n \n1,893 \n \n1,990 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n1,465 \n \n221 \n \n1,374 \n \n2,179 \n \n585 \n \n240 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- $ 2,018 \n-- 2,262 \n-- \n \n-- $ 2,377 \n-- 1,928 \n-- \n \n-- $ 2,537 \n-- 1,683 \n-- \n \n-- 2,611 \n-- 1,485 \n-- \n \nTotal Additions to (Deductions from) Fiduciary Net Position \nSEAD - OPEB \nMember Contributions Employer Contributions Insurance Premiums Net Investment Income (Loss) Other \n \n$ 2,747 $ 1,742 $ 3,077 $ 4,071 $ 2,478 $ 2,230 $ 4,280 $ 4,305 $ 4,220 $ 4,096 \n \n$ \n \n-- $ \n \n-- \n \n6,437 \n \n144,270 \n \n-- \n \n-- $ \n \n-- $ \n \n-- $ \n \n-- \n \n-- \n \n-- \n \n5,532 \n \n5,075 \n \n4,502 \n \n17,193 108,148 154,868 \n \n-- \n \n-- \n \n-- \n \n-- $ -- 4,187 37,876 -- \n \n-- $ \n \n-- $ \n \n-- $ \n \n-- \n \n1 \n \n-- \n \n3,931 \n \n3,793 \n \n3,599 \n \n12,559 \n \n125,550 101,542 \n \n-- \n \n-- \n \n-- \n \n-- $ 5 3,328 79,193 -- \n \n-- -- 3,088 65,248 -- \n \nTotal Additions to (Deductions from) Fiduciary Net Position \nDefined Contribution Plan - GDCP \nMember Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \n \n$ 150,707 $ \n$ 17,656 $ -- -- \n775 -- \n \n22,725 $ 113,223 $ 159,370 $ \n \n17,171 $ -- -- \n652 -- \n \n16,676 $ -- -- \n137 -- \n \n16,290 $ -- -- \n1,368 -- \n \n42,063 $ \n15,655 $ -- -- \n1,326 -- \n \n16,490 $ 129,344 $ 105,141 $ \n \n14,708 $ -- -- \n5,591 -- \n \n14,921 $ -- -- \n(1,056) -- \n \n14,585 $ -- -- \n(356) -- \n \n82,526 $ \n14,578 $ -- -- \n8,324 -- \n \n68,336 \n14,658 -- -- \n9,078 -- \n \nTotal Additions to (Deductions from) Fiduciary Net Position \n \n$ 18,431 $ 17,823 $ 16,813 $ 17,658 $ 16,981 $ 20,299 $ 13,865 $ 14,229 $ 22,902 $ 23,736 \n \n(continued) 140 \n \n Statistical Section \n \nAdditions by Source - Contribution/Investment Income \n(in thousands) \n \nDefined Contribution Plan - 401(k) \nMember Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \n \n2011 \n \n2012 \n \n2013 \n \n2014 \n \n2015 \n \n2016 \n \n2017 \n \n2018 \n \n2019 \n \n2020 \n \n$ 38,006 $ 40,331 $ 44,428 $ 53,724 $ 64,870 $ 79,422 $ 93,608 $ 110,848 $ 119,770 $ 129,639 \n \n25,442 \n \n4,355 \n \n18,279 \n \n21,513 \n \n25,615 \n \n29,982 \n \n36,761 \n \n43,176 \n \n47,170 \n \n51,138 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n59,581 \n \n3,112 \n \n52,835 \n \n78,583 \n \n17,665 \n \n5,281 \n \n88,771 \n \n72,671 \n \n61,106 \n \n40,850 \n \n446 \n \n800 \n \n948 \n \n1,122 \n \n1,298 \n \n1,429 \n \n1,584 \n \n1,744 \n \n544 \n \n426 \n \nTotal Additions to (Deductions from) Fiduciary Net Position \nDefined Contribution Plan - 457 \nMember Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \n \n$ 123,475 $ 48,598 $ 116,490 $ 154,942 $ 109,448 $ 116,114 $ 220,724 $ 228,439 $ 228,590 $ 222,053 \n \n$ 20,108 $ 19,551 $ 18,753 $ 17,623 $ 17,445 $ 17,413 $ 18,899 $ 20,133 $ 20,264 $ 20,216 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n70,963 \n \n7,785 \n \n55,737 \n \n73,746 \n \n18,991 \n \n7,855 \n \n59,541 \n \n46,748 \n \n39,100 \n \n25,563 \n \n339 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n53 \n \n25 \n \nTotal Additions to (Deductions from) Fiduciary Net Position \nSuvivor's Benefit Fund - SBF \nMember Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \n \n$ 91,410 $ 27,336 $ 74,490 $ 91,369 $ 36,436 $ 25,268 $ 78,440 $ 66,881 $ 59,417 $ 45,804 \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a $ \n \n-- \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \n-- \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \n-- \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \n8,701 \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \n-- \n \nTotal Additions to (Deductions from) Fiduciary Net Position \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a $ 8,701 \n \n141 \n \n Statistical Section \nDeductions by Type \n(in thousands) \n \nERS \n \nBenefit Payments \n \nFiscal Year Service \n \n2011 $ 921,136 \n \n2012 \n \n964,485 \n \n2013 \n \n1,007,816 \n \n2014 \n \n1,051,993 \n \n2015 \n \n1,076,676 \n \n2016 \n \n1,092,909 \n \n2017 \n \n1,130,996 \n \n2018 \n \n1,146,226 \n \n2019 \n \n1,171,942 \n \n2020 \n \n1,205,502 \n \nPartial Lump-Sum \nOption $ 30,946 \n31,963 35,933 24,567 24,391 19,154 19,765 21,624 20,535 19,108 \n \nDisability $ 140,849 \n143,317 145,152 146,245 147,418 147,706 151,772 152,469 155,193 159,443 \n \nSurvivor Benefits $ 75,891 76,973 80,300 83,193 85,794 87,843 91,750 92,979 96,086 100,392 \n \nNet \n \nTotal Benefit Administrative \n \nPayments \n \nExpenses \n \nRefunds \n \n$ 1,168,822 $ 14,431 $ 7,515 \n \n1,216,738 \n \n12,051 \n \n7,767 \n \n1,269,201 \n \n12,889 \n \n7,390 \n \n1,305,998 \n \n7,440 \n \n8,757 \n \n1,334,278 \n \n7,872 \n \n7,450 \n \n1,347,633 \n \n8,506 \n \n7,087 \n \n1,394,283 \n \n8,732 \n \n9,033 \n \n1,413,298 \n \n8,056 \n \n7,585 \n \n1,443,756 \n \n7,142 \n \n7,691 \n \n1,484,445 \n \n7,641 \n \n6,644 \n \nTotal Deductions \nfrom Fiduciary Net Position \n$1,190,768 \n1,236,556 \n1,289,480 \n1,322,195 \n1,349,600 \n1,363,226 \n1,412,048 \n1,428,939 \n1,458,589 \n1,498,730 \n \nPSERS \n \nFiscal Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nService $ 46,548 \n46,911 47,805 48,911 49,704 50,572 52,012 54,257 56,008 58,412 \n \nBenefit Payments \n \nDisability $ 5,369 \n5,369 5,328 5,280 5,227 5,172 5,117 5,114 4,991 5,000 \n \nSurvivor Benefits $ 2,063 \n1,903 1,908 1,998 2,041 2,160 2,249 2,449 2,638 2,678 \n \nTotal Benefit Payments \n$ 53,980 54,183 55,041 56,189 56,972 57,903 59,378 61,820 63,637 66,090 \n \nNet Administrative \nExpenses \n \n$ \n \n2,046 \n \n2,040 \n \n2,021 \n \n1,450 \n \n1,545 \n \n1,321 \n \n1,308 \n \n1,331 \n \n1,377 \n \n1,424 \n \nRefunds $ 267 \n349 492 514 456 465 1,031 701 609 572 \n \nTotal Deductions \nfrom Fiduciary Net Position \n$ 56,293 \n56,572 \n57,554 \n58,153 \n58,973 \n59,689 \n61,717 \n63,852 \n65,623 \n68,086 \n \nGJRS \n \nFiscal Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nService $ 11,245 \n12,608 14,273 15,305 16,084 16,677 19,349 22,239 24,642 26,203 \n \nBenefit Payments \n \nDisability $ 112 \n113 112 112 112 112 114 117 119 120 \n \nSurvivor Benefits $ 1,654 \n1,695 1,865 2,024 2,169 2,222 2,321 2,578 2,701 2,940 \n \nTotal Benefit Payments \n$ 13,011 14,416 16,250 17,441 18,365 19,011 21,784 24,934 27,462 29,263 \n \nNet Administrative \nExpenses \n \n$ \n \n290 \n \n310 \n \n313 \n \n754 \n \n819 \n \n754 \n \n728 \n \n794 \n \n820 \n \n849 \n \nRefunds $ 260 \n146 105 \n22 772 261 166 150 553 213 \n \nTotal Deductions \nfrom Fiduciary Net Position \n$ 13,561 \n14,872 \n16,668 \n18,217 \n19,956 \n20,026 \n22,678 \n25,878 \n28,835 \n30,325 \n \n(continued) 142 \n \n Statistical Section \nDeductions by Type \n(in thousands) \n \nLRS \n \nBenefit Payments \n \nFiscal Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nService $ 1,309 \n1,364 1,376 1,336 1,315 1,294 1,323 1,347 1,383 1,362 \n \nSurvivor Benefits \n \n$ \n \n452 \n \n446 \n \n448 \n \n465 \n \n441 \n \n429 \n \n440 \n \n425 \n \n473 \n \n433 \n \nTotal Benefit Payments \n$ 1,761 1,810 1,824 1,801 1,756 1,724 1,763 1,772 1,856 1,795 \n \nNet Administrative \nExpenses \n \n$ \n \n131 $ \n \n110 \n \n119 \n \n152 \n \n169 \n \n313 \n \n224 \n \n283 \n \n290 \n \n305 \n \nRefunds 60 74 88 30 26 38 75 22 70 21 \n \nTotal Deductions \nfrom Fiduciary Net Position \n$ 1,952 \n1,994 \n2,031 \n1,983 \n1,951 \n2,075 \n2,062 \n2,077 \n2,216 \n2,121 \n \nGMPF \n \nFiscal Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nBenefit Payments \n \nService* \n \n$ \n \n579 \n \n678 \n \n772 \n \n841 \n \n896 \n \n963 \n \n1,042 \n \n1,138 \n \n1,221 \n \n1,297 \n \nTotal Benefit Payments \n \n$ \n \n579 \n \n678 \n \n772 \n \n841 \n \n896 \n \n963 \n \n1,042 \n \n1,138 \n \n1,221 \n \n1,297 \n \nNet Administrative \nExpenses \n \nTotal Deductions \nfrom Fiduciary Net Position \n \n$ \n \n37 \n \n$ \n \n616 \n \n34 \n \n712 \n \n31 \n \n803 \n \n110 \n \n951 \n \n121 \n \n1,017 \n \n262 \n \n1,225 \n \n244 \n \n1,286 \n \n225 \n \n1,363 \n \n235 \n \n1,456 \n \n249 \n \n1,546 \n \n*The only type of retirement in GMPF is a service retirement. \n \nSEAD-OPEB \n \nFiscal Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nBenefit Payments \n \nDeath Benefits** $ 23,060 \n24,855 28,482 28,891 32,979 33,911 36,058 36,249 37,416 44,754 \n \nTotal Benefit Payments \n$ 23,060 24,855 28,482 28,891 32,979 33,911 36,058 36,249 37,416 44,754 \n \nNet Administrative \nExpenses \n \nTotal Deductions \nfrom Fiduciary Net Position \n \n$ \n \n203 $ 23,263 \n \n203 \n \n25,058 \n \n203 \n \n28,685 \n \n414 \n \n29,305 \n \n428 \n \n33,407 \n \n599 \n \n34,510 \n \n576 \n \n36,634 \n \n681 \n \n36,930 \n \n716 \n \n38,132 \n \n720 \n \n45,474 \n \n**The only type of benefit in SEAD-OPEB is a death benefit. \n \n143 \n \n(continued) \n \n Statistical Section \nDeductions by Type \n(in thousands) \n \nDefined Contribution Plan - GDCP Benefit Payments \n \nFiscal Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nPeriodic Payments \n \n$ \n \n9 \n \n11 \n \n9 \n \n9 \n \n-- \n \n-- \n \n-- \n \n-- \n \n10 \n \n7 \n \nTotal Benefit Payments \n \n$ \n \n9 \n \n11 \n \n9 \n \n9 \n \n-- \n \n35 \n \n-- \n \n-- \n \n10 \n \n7 \n \nNet Administrative \nExpenses $ 1,180 $ \n1,138 1,160 \n991 990 766 785 852 882 913 \n \nRefunds 11,390 12,749 14,415 17,721 22,340 11,911 11,544 10,080 10,931 10,510 \n \nTotal Deductions \nfrom Fiduciary Net Position \n$ 12,579 \n13,898 \n15,584 \n18,721 \n23,330 \n12,712 \n12,329 \n10,932 \n11,823 \n11,430 \n \nDefined Contribution Plan - 401(k) \n \nFiscal Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nBenefit Payments \n \nDistributions \n$ 42,457 36,986 57,351 43,133 95,428 46,508 55,866 64,103 79,644 92,355 \n \nTotal Benefit Payments \n$ 42,457 36,986 57,351 43,133 95,428 46,508 55,866 64,103 79,644 92,355 \n \nNet Administrative \nExpenses \n \nTotal Deductions \nfrom Fiduciary Net Position \n \n$ \n \n2,054 $ 44,511 \n \n2,111 \n \n39,097 \n \n2,457 \n \n59,808 \n \n2,300 \n \n45,433 \n \n2,755 \n \n98,183 \n \n2,832 \n \n49,340 \n \n3,096 \n \n58,962 \n \n3,639 \n \n67,742 \n \n3,431 \n \n83,075 \n \n3,816 \n \n96,171 \n \nDefined Contribution Plan - 457 \n \nFiscal Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nBenefit Payments \n \nDistributions \n$ 44,773 41,835 63,388 45,807 50,479 43,288 38,872 40,690 42,081 40,067 \n \nTotal Benefit Payments \n$ 44,773 41,835 63,388 45,807 50,479 43,288 38,872 40,690 42,081 40,067 \n \nNet Administrative \nExpenses \n \nTotal Deductions \nfrom Fiduciary Net Position \n \n$ \n \n1,064 $ 45,837 \n \n910 \n \n42,745 \n \n996 \n \n64,384 \n \n812 \n \n46,619 \n \n866 \n \n51,345 \n \n820 \n \n44,108 \n \n789 \n \n39,661 \n \n442 \n \n41,132 \n \n724 \n \n42,805 \n \n745 \n \n40,812 \n \n144 \n \n(continued) \n \n Statistical Section \nDeductions by Type \n(in thousands) \n \nSurvivors' Benefit Fund Benefit Payments \n \nFiscal Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nDeath Benefits \nn/a n/a n/a n/a n/a n/a n/a n/a n/a -- \n \nTotal Benefit Payments n/a n/a n/a n/a n/a n/a n/a n/a n/a -- \n \nNet Administrative \nExpenses n/a n/a n/a n/a n/a n/a n/a n/a n/a -- \n \nTotal Deductions \nfrom Fiduciary Net Position \nn/a \nn/a \nn/a \nn/a \nn/a \nn/a \nn/a \nn/a \nn/a -- \n \n145 \n \n Statistical Section \nChanges in Fiduciary Net Position \n(in thousands) \n \nERS \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nPSERS \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nGJRS \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nLRS \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nGMPF \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \n \n2011 \n \n2012 \n \n2013 \n \n2014 \n \n2015 \n \n2016 \n \n2017 \n \n2018 \n \n2019 \n \n2020 \n \n$2,569,882 $ 542,377 $1,893,796 $2,483,923 $1,026,033 $ 768,829 $2,136,780 $1,855,320 $1,558,875 $1,383,544 \n \n1,190,768 1,236,556 1,289,480 1,322,195 1,349,600 1,363,226 1,412,048 1,428,939 1,458,589 1,498,730 \n \n-- (12,724) (5,009) \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n1,379,114 (706,903) 599,307 1,161,728 (323,567) (594,397) 724,732 426,381 100,286 (115,186) \n \n137,056 56,293 -- 80,763 \n \n30,864 56,572 \n-- (25,708) \n \n114,434 57,554 -- 56,880 \n \n152,618 58,153 -- 94,465 \n \n60,390 58,973 \n-- 1,417 \n \n40,314 59,689 \n-- (19,375) \n \n126,076 61,717 -- 64,359 \n \n109,856 63,852 -- 46,004 \n \n93,072 65,623 \n-- 27,449 \n \n84,747 68,086 \n-- 16,661 \n \n63,214 13,561 \n-- 49,653 \n \n13,558 14,872 \n-- (1,314) \n \n48,791 16,668 \n-- 32,123 \n \n67,118 18,217 \n-- 48,901 \n \n24,018 19,956 \n-- 4,062 \n \n18,185 20,026 \n-- (1,841) \n \n60,849 22,678 \n-- 38,171 \n \n51,353 25,878 \n-- 25,475 \n \n41,550 28,835 \n-- 12,715 \n \n36,883 30,325 \n-- 6,558 \n \n5,589 1,952 \n-- 3,637 \n \n949 1,994 \n-- (1,045) \n \n4,074 2,031 \n-- 2,043 \n \n5,296 1,983 \n-- 3,313 \n \n1,516 1,951 \n-- (435) \n \n691 2,075 \n-- (1,384) \n \n4,068 2,062 \n-- 2,006 \n \n3,285 2,077 \n-- 1,208 \n \n2,567 2,216 \n-- 351 \n \n2,149 2,121 \n-- 28 \n \n2,747 616 -- \n2,131 \n \n1,742 712 -- \n1,030 \n \n3,077 803 -- \n2,274 \n \n4,071 951 -- \n3,120 \n \n2,478 1,017 \n-- 1,461 \n \n2,230 1,225 \n-- 1,005 \n \n4,280 1,286 \n-- 2,994 \n \n4,305 1,363 \n-- 2,942 \n \n4,220 1,456 \n-- 2,764 \n \n4,096 1,546 \n-- 2,550 \n \n(continued) 146 \n \n Statistical Section \nChanges in Fiduciary Net Position \n(in thousands) \n \nSEAD - OPEB \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nDefined Contribution Plan - GDCP \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nDefined Contribution Plan - 401(k) \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nDefined Contribution Plan - 457 \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position Survivors' Benefit Fund \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \n \n2011 \n \n2012 \n \n2013 \n \n2014 \n \n2015 \n \n2016 \n \n2017 \n \n2018 \n \n2019 \n \n2020 \n \n$ 150,707 $ 23,263 -- \n127,444 \n \n22,725 $ 113,223 $ 159,370 $ \n \n25,058 \n \n28,685 \n \n29,305 \n \n12,724 \n \n5,009 \n \n5 \n \n10,391 \n \n89,547 130,070 \n \n42,063 $ 33,407 \n2 8,658 \n \n16,490 $ 129,344 $ 105,141 $ \n \n34,510 \n \n36,634 \n \n36,930 \n \n2 \n \n-- \n \n-- \n \n(18,018) 92,710 \n \n68,211 \n \n82,526 $ 38,132 \n-- 44,394 \n \n68,336 45,474 \n-- 22,862 \n \n18,431 12,579 \n-- 5,852 \n \n17,823 13,898 \n-- 3,925 \n \n16,813 15,584 \n-- 1,229 \n \n17,658 18,721 \n-- (1,063) \n \n16,981 23,330 \n-- (6,349) \n \n20,299 12,712 \n-- 7,587 \n \n13,865 12,329 \n-- 1,536 \n \n14,229 10,932 \n-- 3,297 \n \n22,902 11,823 \n-- 11,079 \n \n23,736 11,430 \n-- 12,306 \n \n123,475 44,511 -- 78,964 \n \n48,598 39,097 \n-- 9,501 \n \n116,490 59,808 -- 56,682 \n \n154,942 45,433 -- \n109,509 \n \n109,448 98,183 -- 11,265 \n \n116,114 49,340 -- 66,774 \n \n220,724 58,962 -- \n161,762 \n \n228,439 67,742 -- \n160,697 \n \n228,590 83,075 -- \n145,515 \n \n222,053 96,171 -- \n125,882 \n \n91,410 45,837 \n-- 45,573 \n \n27,336 42,745 \n-- (15,409) \n \n74,490 64,384 \n-- 10,106 \n \n91,369 46,619 \n-- 44,750 \n \n36,436 51,345 \n-- (14,909) \n \n25,268 44,108 \n-- (18,840) \n \n78,440 39,661 \n-- 38,779 \n \n66,881 41,132 \n-- 25,749 \n \n59,417 42,805 \n-- 16,612 \n \n45,804 40,812 \n-- 4,992 \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \n8,701 \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \n-- \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \n-- \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \nn/a \n \n8,701 \n \n147 \n \n Statistical Section \nNumber of Retirees \n \nERS Retirees \n \n2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 \n0 \n \n10,000 \n \n20,000 \n \n30,000 \n \n53,249 52,275 50,863 49,632 48,449 47,180 45,819 44,546 42,053 40,250 \n40,000 50,000 60,000 \n \nGJRS Retirees \n \n2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 \n0 \n \n2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 \n0 \n \n295 290 278 262 235 220 \n \n414 400 358 346 \n \n50 100 150 200 250 300 350 400 450 \n \nGMPF Retirees \n \n2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 \n210 \n \n2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 \n0 \n \n1,223 1,148 1,076 985 915 844 795 739 660 568 \n \n200 \n \n400 \n \n600 \n \n800 1,000 1,200 1,400 \n \nPSERS Retirees \n \n10,000 \n \n19,232 18,990 18,492 18,104 17,626 16,994 16,434 15,742 15,106 14,613 \n20,000 \n \nLRS Retirees \n \n269 269 267 263 257 260 259 259 244 244 \n \n220 \n \n230 \n \n240 \n \n250 \n \n260 \n \n270 \n \n148 \n \n Statistical Section \nAverage Monthly Payments to Retirees \n \nERS \n \n$2,600 $2,400 \n \n$2,200 $2,000 \n \n$1,800 \n \n$1,600 $1,400 \n \n$1,200 \n \n$1,000 \n \n2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \n$6,500 \n \nGJRS \n \n$6,000 \n \n$5,500 \n \n$5,000 \n \n$4,500 \n \n$4,000 \n \n$3,500 \n \n$3,000 \n \n2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nGMPF \n$100 $90 $80 $70 $60 $50 $40 $30 $20 \n2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nPSERS \n \n$320 $300 $280 $260 $240 $220 $200 $180 \n \n2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nLRS \n$650 \n \n$600 \n \n$550 \n \n$500 \n \n$450 \n \n$400 \n \n2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \n149 \n \n Statistical Section \nAnnual Benefit \n \n$1,500,000 \n \nERS Annual Benefit \n \n$1,400,000 \n \nThousands \n \n$1,300,000 \n \n$1,200,000 $1,100,000 \n \nThousands \n \n$1,000,000 \n \n2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \n$30,000 \n \nGJRS Annual Benefit \n \n$25,000 \n \n$20,000 \n \n$15,000 \n \n$10,000 \n \n$5,000 \n \n2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \nGMPF Annual Benefit \n \nThousands \n \n$1,400 \n \n$1,200 \n \n$1,000 \n \n$800 \n \n$600 \n \n$400 \n \n$200 \n \n2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nThousands \n \nThousands \n \n$70,000 \n \nPSERS Annual Benefit \n \n$60,000 \n \n$50,000 \n \n$40,000 \n \n$30,000 \n \n2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nLRS Annual Benefit \n$2,000 \n \n$1,800 \n \n$1,600 \n \n$1,400 \n \n$1,200 \n \n$1,000 \n \n2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \n150 \n \n Statistical Section \nWithdrawal Statistics \n \nERS Withdrawals \n \n9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 \n0 \n \n2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nPSERS Withdrawals \n7,000 6,000 5,000 4,000 3,000 2,000 1,000 \n0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nGJRS Withdrawals 14 12 10 8 6 4 2 0 \n2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nLRS Withdrawals 14 12 10 8 6 4 2 0 \n2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nERS Average Withdrawal \n \n$1,800 \n \n$1,700 \n \n$1,600 \n \n$1,500 \n \n$1,400 \n \n$1,300 \n \n$1,200 \n \n$1,100 \n \n$1,000 \n \n2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nPSERS Average Withdrawal \n \n$250 $240 $230 $220 $210 $200 $190 $180 $170 $160 $150 \n \n2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nGJRS Average Withdrawal \n \n$120,000 $110,000 $100,000 \n$90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 \n$0 \n \n2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nLRS Average Withdrawal $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 \n$0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nNote: The GMPF Plan does not have a refund feature. \n \nERS Annual Withdrawal (in thousands) \n \n$9,500 $9,000 $8,500 $8,000 $7,500 $7,000 $6,500 $6,000 $5,500 $5,000 \n \n2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nPSERS Annual Withdrawal (in thousands) \n$1,200 $1,000 \n$800 $600 $400 $200 \n$0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nGJRS Annual Withdrawal (in thousands) \n \n$900 $800 $700 $600 $500 $400 $300 $200 $100 \n$0 \n \n2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nLRS Annual Withdrawal (in thousands) \n \n$100 $90 $80 $70 $60 $50 $40 $30 $20 $10 \n$0 \n \n2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \n151 \n \n Statistical Section \n \nAverage Monthly Benefit Payment for New Retirees - ERS \n \nYears of Credited Service \n \n10-15 \n \n16-20 \n \n21-25 \n \n26-30 \n \nOver 30 \n \nTotal \n \n2011 \n \nAverage Monthly Benefit \n \n$ 734.74 $ 1,107.16 $ 1,504.51 $ 1,995.24 $ 3,575.54 $ 2,143.95 \n \nAverage Final Average Salary $ 3,228.07 $ 3,205.88 $ 3,478.73 $ 3,762.88 $ 4,532.07 $ 3,825.88 \n \nNumber of Retirees \n \n437 \n \n322 \n \n389 \n \n461 \n \n885 \n \n2,494 \n \n2012 \n \nAverage Monthly Benefit \n \n$ 729.60 $ 1,247.16 $ 1,624.82 $ 2,125.35 $ 3,708.26 $ 2,109.84 \n \nAverage Final Average Salary $ 3,040.00 $ 3,275.37 $ 3,388.85 $ 3,807.26 $ 4,702.47 $ 3,775.94 \n \nNumber of Retirees \n \n518 \n \n385 \n \n414 \n \n486 \n \n776 \n \n2,578 \n \n2013 \n \nAverage Monthly Benefit \n \n$ 836.73 $ 1,183.19 $ 1,650.14 $ 2,120.33 $ 3,487.96 $ 2,088.46 \n \nAverage Final Average Salary $ 3,391.36 $ 3,339.84 $ 3,411.24 $ 3,765.16 $ 4,659.17 $ 3,855.98 \n \nNumber of Retirees \n \n684 \n \n453 \n \n466 \n \n780 \n \n1,033 \n \n3,416 \n \n2014 \n \nAverage Monthly Benefit \n \n$ 769.91 $ 1,232.07 $ 1,527.47 $ 2,057.32 $ 3,242.25 $ 1,870.02 \n \nAverage Final Average Salary $ 3,309.44 $ 3,337.66 $ 3,263.54 $ 3,718.37 $ 4,486.34 $ 3,699.86 \n \nNumber of Retirees \n \n483 \n \n306 \n \n311 \n \n477 \n \n542 \n \n2,119 \n \n2015 \n \nAverage Monthly Benefit \n \n$ 750.98 $ 1,224.00 $ 1,620.88 $ 2,068.82 $ 3,074.69 $ 1,837.97 \n \nAverage Final Average Salary $ 3,269.25 $ 3,443.88 $ 3,547.63 $ 3,750.99 $ 4,536.68 $ 3,760.27 \n \nNumber of Retirees \n \n524 \n \n316 \n \n341 \n \n623 \n \n561 \n \n2,365 \n \n2016 \n \nAverage Monthly Benefit \n \n$ 759.54 $ 1,224.52 $ 1,760.28 $ 2,171.75 $ 2,996.81 $ 1,783.98 \n \nAverage Final Average Salary $ 3,189.20 $ 3,376.84 $ 3,657.08 $ 3,935.01 $ 4,618.83 $ 3,764.34 \n \nNumber of Retirees \n \n559 \n \n340 \n \n330 \n \n530 \n \n466 \n \n2,225 \n \n2017 \n \nAverage Monthly Benefit \n \n$ 796.76 $ 1,204.27 $ 1,786.30 $ 2,109.53 $ 2,870.19 $ 1,732.36 \n \nAverage Final Average Salary $ 3,479.90 $ 3,405.67 $ 3,850.73 $ 3,813.78 $ 4,595.25 $ 3,829.66 \n \nNumber of Retirees \n \n551 \n \n395 \n \n359 \n \n453 \n \n470 \n \n2,228 \n \n2018 \n \nAverage Monthly Benefit \n \n$ 794.94 $ 1,318.26 $ 1,679.64 $ 2,302.80 $ 2,879.55 $ 1,791.49 \n \nAverage Final Average Salary $ 3,505.83 $ 3,674.56 $ 3,707.56 $ 4,154.11 $ 4,638.01 $ 3,950.06 \n \nNumber of Retirees \n \n570 \n \n389 \n \n306 \n \n525 \n \n476 \n \n2,266 \n \n2019 \n \nAverage Monthly Benefit \n \n$ 806.32 $ 1,332.96 $ 1,888.94 $ 2,269.75 $ 3,089.58 $ 1,852.26 \n \nAverage Final Average Salary $ 3,624.77 $ 3,867.03 $ 4,173.06 $ 4,178.96 $ 4,954.06 $ 4,153.40 \n \nNumber of Retirees \n \n624 \n \n436 \n \n335 \n \n461 \n \n545 \n \n2,401 \n \n2020 \n \nAverage Monthly Benefit \n \n$ 790.83 $ 1,310.46 $ 1,755.20 $ 2,335.40 $ 3,234.98 $ 1,935.05 \n \nAverage Final Average Salary $ 3,609.89 $ 3,733.97 $ 3,853.51 $ 4,268.19 $ 5,132.48 $ 4,167.37 \n \nNumber of Retirees \n \n469 \n \n368 \n \n341 \n \n441 \n \n501 \n \n2,120 \n \n(continued) 152 \n \n Statistical Section \nAverage Monthly Benefit Payment for New Retirees - PSERS \n \n2011 Average Monthly Benefit Number of Retirees 2012 Average Monthly Benefit Number of Retirees 2013 Average Monthly Benefit Number of Retirees 2014 Average Monthly Benefit Number of Retirees 2015 Average Monthly Benefit Number of Retirees 2016 Average Monthly Benefit Number of Retirees 2017 Average Monthly Benefit Number of Retirees 2018 Average Monthly Benefit Number of Retirees 2019 Average Monthly Benefit Number of Retirees 2020 Average Monthly Benefit Number of Retirees \n \n10-15 \n \n16-20 \n \nYears of Credited Service \n \n21-25 \n \n26-30 \n \nOver 30 \n \nTotal \n \n$ 158.67 $ 227.68 $ 297.01 $ 374.01 $ 479.42 $ 245.04 \n \n463 \n \n200 \n \n126 \n \n79 \n \n114 \n \n982 \n \n$ 159.25 $ 236.46 $ 303.66 $ 362.36 $ 476.51 $ 238.59 \n \n480 \n \n182 \n \n136 \n \n74 \n \n87 \n \n958 \n \n$ 159.34 $ 232.10 $ 300.66 $ 360.75 $ 478.49 $ 245.72 \n \n580 \n \n255 \n \n175 \n \n113 \n \n133 \n \n1,256 \n \n$ 154.20 $ 227.41 $ 297.58 $ 345.98 $ 437.20 $ 233.71 \n \n603 \n \n268 \n \n147 \n \n121 \n \n131 \n \n1,270 \n \n$ 155.20 $ 225.02 $ 290.82 $ 360.11 $ 471.12 $ 233.25 \n \n568 \n \n254 \n \n166 \n \n105 \n \n99 \n \n1,192 \n \n$ 160.28 $ 232.09 $ 298.45 $ 358.11 $ 489.48 $ 242.18 \n \n529 \n \n273 \n \n454 \n \n103 \n \n103 \n \n1,162 \n \n$ 153.93 $ 226.90 $ 286.35 $ 348.16 $ 437.62 $ 228.12 \n \n515 \n \n230 \n \n126 \n \n78 \n \n104 \n \n1,053 \n \n$ 156.77 $ 228.48 $ 293.26 $ 363.46 $ 480.15 $ 238.68 \n \n508 \n \n241 \n \n148 \n \n91 \n \n102 \n \n1,090 \n \n$ 162.22 $ 225.88 $ 301.08 $ 366.63 $ 485.44 $ 245.95 \n \n486 \n \n266 \n \n162 \n \n109 \n \n100 \n \n1,123 \n \n$ 169.11 $ 237.94 $ 306.69 $ 376.31 $ 479.54 $ 257.59 \n \n424 \n \n230 \n \n119 \n \n73 \n \n124 \n \n970 \n \nNote: PSERS is not a final average pay plan. \n \n(continued) 153 \n \n Statistical Section \n \nAverage Monthly Benefit Payment for New Retirees - GJRS \n \nYears of Credited Service \n \n10-15 \n \n16-20 \n \n21-25 \n \n26-30 \n \nOver 30 \n \nTotal \n \n2011 \n \nAverage Monthly Benefit \n \n$ 4,632.24 $ 10,170.24 $ 9,799.81 $ 8,428.40 $ \n \nAverage Final Average Salary $ 9,211.23 $ 14,910.13 $ 13,052.66 $ 11,264.63 $ \n \nNumber of Retirees \n \n4 \n \n2 \n \n2 \n \n3 \n \n-- $ 7,614.02 \n \n-- $ 11,505.85 \n \n-- \n \n11 \n \n2012 \n \nAverage Monthly Benefit \n \n$ 4,204.95 $ 6,610.26 $ 7,565.84 $ 8,791.96 $ 7,831.84 $ 6,915.64 \n \nAverage Final Average Salary $ 7,788.39 $ 9,887.17 $ 10,361.29 $ 11,714.95 $ 10,490.01 $ 10,035.77 \n \nNumber of Retirees \n \n5 \n \n4 \n \n4 \n \n7 \n \n1 \n \n20 \n \n2013 \n \nAverage Monthly Benefit \n \n$ 5,179.20 $ 5,844.29 $ 6,170.52 $ 7,954.14 $ 6,169.77 $ 6,132.24 \n \nAverage Final Average Salary $ 9,271.48 $ 8,344.35 $ 8,370.72 $ 10,624.52 $ 8,864.27 $ 9,010.27 \n \nNumber of Retirees \n \n8 \n \n7 \n \n7 \n \n5 \n \n7 \n \n34 \n \n2014 \n \nAverage Monthly Benefit \n \n$ 2,989.92 $ 4,468.12 $ 6,496.50 $ \n \nAverage Final Average Salary $ 6,265.39 $ 7,772.95 $ 8,998.48 $ \n \nNumber of Retirees \n \n6 \n \n2 \n \n7 \n \n-- $ 2,703.82 $ 4,470.15 \n \n-- $ 4,289.57 $ 7,166.46 \n \n-- \n \n3 \n \n18 \n \n2015 \n \nAverage Monthly Benefit \n \n$ 4,010.30 $ 6,317.44 $ 7,051.15 $ 7,589.28 $ 2,406.28 $ 6,267.69 \n \nAverage Final Average Salary $ 6,937.39 $ 9,141.51 $ 9,751.01 $ 10,165.12 $ 3,222.98 $ 8,905.45 \n \nNumber of Retirees \n \n2 \n \n5 \n \n7 \n \n2 \n \n1 \n \n17 \n \n2016 \n \nAverage Monthly Benefit \n \n$ \n \nAverage Final Average Salary $ \n \nNumber of Retirees \n \n-- $ 6,534.36 $ 8,121.58 $ \n \n-- $ 9,655.37 $ 11,204.04 $ \n \n-- \n \n6 \n \n2 \n \n-- $ 8,635.31 $ 7,120.51 \n \n-- $ 11,566.18 $ 10,211.83 \n \n-- \n \n1 \n \n9 \n \n2017 \n \nAverage Monthly Benefit \n \n$ 4,519.89 $ 6,690.09 $ 8,737.31 $ 5,895.46 $ 8,026.56 $ 6,964.60 \n \nAverage Final Average Salary $ 9,049.84 $ 9,833.21 $ 12,013.62 $ 7,896.41 $ 10,750.81 $ 10,232.13 \n \nNumber of Retirees \n \n10 \n \n18 \n \n13 \n \n4 \n \n10 \n \n55 \n \n2018 \n \nAverage Monthly Benefit \n \n$ 6,056.07 $ 7,565.45 $ 7,700.44 $ 7,979.26 $ \n \nAverage Final Average Salary $ 11,385.55 $ 11,096.74 $ 10,618.33 $ 10,687.46 $ \n \nNumber of Retirees \n \n3 \n \n5 \n \n7 \n \n2 \n \n-- $ 7,403.36 \n \n-- $ 10,902.57 \n \n-- \n \n17 \n \n2019 \n \nAverage Monthly Benefit \n \n$ 4,646.94 $ 6,293.69 $ 8,486.61 $ 7,795.06 $ 8,348.20 $ 6,878.64 \n \nAverage Final Average Salary $ 8,909.34 $ 9,278.67 $ 11,566.18 $ 11,014.40 $ 11,181.62 $ 10,204.03 \n \nNumber of Retirees \n \n9 \n \n10 \n \n7 \n \n8 \n \n5 \n \n39 \n \n2020 \n \nAverage Monthly Benefit \n \n$ 4,438.61 $ 5,557.00 $ 7,647.49 $ 8,800.28 $ 9,205.45 $ 6,727.54 \n \nAverage Final Average Salary $ 9,230.72 $ 10,079.17 $ 11,629.28 $ 11,787.15 $ 12,329.82 $ 10,805.40 \n \nNumber of Retirees \n \n4 \n \n6 \n \n5 \n \n2 \n \n3 \n \n20 \n \n(continued) 154 \n \n Statistical Section \nAverage Monthly Benefit Payment for New Retirees - LRS \n \n2011 Average Monthly Benefit Number of Retirees 2012 Average Monthly Benefit Number of Retirees 2013 Average Monthly Benefit Number of Retirees 2014 Average Monthly Benefit Number of Retirees 2015 Average Monthly Benefit Number of Retirees 2016 Average Monthly Benefit Number of Retirees 2017 Average Monthly Benefit Number of Retirees 2018 Average Monthly Benefit Number of Retirees 2019 Average Monthly Benefit Number of Retirees 2020 Average Monthly Benefit Number of Retirees \n \n8-14 \n \n15-19 \n \nYears of Credited Service \n \n20-24 \n \n25-29 \n \nOver 29 \n \nTotal \n \n$ 341.79 $ 589.12 $ \n \n12 \n \n1 \n \n-- $ 843.26 $ 934.73 $ 456.99 \n \n-- \n \n2 \n \n1 \n \n16 \n \n$ 363.66 $ 549.08 $ \n \n4 \n \n2 \n \n-- $ -- \n \n-- $ 1,286.43 $ 548.46 \n \n-- \n \n1 \n \n7 \n \n$ 308.15 $ 568.93 $ 670.94 $ \n \n14 \n \n4 \n \n2 \n \n-- $ 1,166.93 $ 497.03 \n \n-- \n \n3 \n \n23 \n \n$ 289.25 $ 480.21 $ \n \n3 \n \n1 \n \n-- $ -- \n \n-- $ -- \n \n-- $ 336.99 \n \n-- \n \n4 \n \n$ 341.03 $ 382.95 $ 642.84 $ \n \n5 \n \n1 \n \n3 \n \n-- $ 1,228.50 $ 588.51 \n \n-- \n \n2 \n \n11 \n \n$ 322.51 $ 524.09 $ \n \n5 \n \n2 \n \n-- $ -- \n \n-- $ -- \n \n-- $ 380.11 \n \n-- \n \n7 \n \n$ 362.52 $ 557.02 $ 740.79 $ \n \n6 \n \n3 \n \n2 \n \n-- $ -- \n \n-- $ 484.34 \n \n-- \n \n11 \n \n$ 323.56 $ 476.35 $ 719.16 $ \n \n5 \n \n3 \n \n1 \n \n-- $ -- \n \n-- $ 418.44 \n \n-- \n \n9 \n \n$ 358.24 $ 493.00 $ 658.44 $ 793.55 $ \n \n6 \n \n2 \n \n2 \n \n2 \n \n-- $ 503.28 \n \n-- \n \n12 \n \n$ 374.69 $ 494.79 $ \n \n5 \n \n3 \n \n-- $ 640.36 $ \n \n-- \n \n1 \n \n-- $ 444.25 \n \n-- \n \n9 \n \nNote: LRS is not a final average pay plan. \n \n(continued) 155 \n \n Statistical Section \nAverage Monthly Benefit Payment for New Retirees - GMPF \n \n2011 Average Monthly Benefit Number of Retirees 2012 Average Monthly Benefit Number of Retirees 2013 Average Monthly Benefit Number of Retirees 2014 Average Monthly Benefit Number of Retirees 2015 Average Monthly Benefit Number of Retirees 2016 Average Monthly Benefit Number of Retirees 2017 Average Monthly Benefit Number of Retirees 2018 Average Monthly Benefit Number of Retirees 2019 Average Monthly Benefit Number of Retirees 2020 Average Monthly Benefit Number of Retirees \nNote: GMPF is not a final average pay plan. \n \n20-25 \n \nYears of Credited Service \n \n26-30 \n \nOver 30 \n \nTotal \n \n$ 63.16 $ 91.47 $ 100.00 $ 90.40 \n \n19 \n \n17 \n \n52 \n \n88 \n \n$ 61.54 $ 90.33 $ 100.00 $ 92.83 \n \n13 \n \n15 \n \n63 \n \n90 \n \n$ 59.44 $ 89.55 $ 100.00 $ 88.29 \n \n18 \n \n22 \n \n42 \n \n82 \n \n$ 61.11 $ 90.53 $ 100.00 $ 91.02 \n \n9 \n \n19 \n \n31 \n \n59 \n \n$ 62.07 $ 94.10 $ 100.00 $ 86.99 \n \n15 \n \n16 \n \n20 \n \n51 \n \n$ 66.30 $ 89.29 $ 100.00 $ 85.07 \n \n27 \n \n14 \n \n30 \n \n71 \n \n$ 65.00 $ 89.05 $ 100.00 $ 91.09 \n \n11 \n \n21 \n \n37 \n \n69 \n \n$ 61.00 $ 87.39 $ 100.00 $ 91.17 \n \n10 \n \n23 \n \n44 \n \n77 \n \n$ 67.14 $ 91.11 $ 100.00 $ 87.38 \n \n21 \n \n36 \n \n23 \n \n80 \n \n$ 61.25 $ 89.29 $ 100.00 $ 86.49 \n \n20 \n \n21 \n \n33 \n \n74 \n \n156 \n \n Statistical Section \nRetired Members by Retirement Type \n \nERS June 30, 2020 \n \nAmount of Monthly Benefit \n \n$ \n \n1 - 500 \n \n501 - 1,000 \n \n1,001 - 1,500 \n \n1,501 - 2,000 \n \n2,001 - 2,500 \n \n2,501 - 3,000 \n \n3,001 - 3,500 \n \n3,501 - 4,000 \n \n4,001 - 4,500 \n \n4,501 - 5,000 \n \n5,001 - 5,500 \n \n5,501 - 6,000 \n \nover 6,000 \n \nRetirement Type \n \nService Disability Survivor \n \n3,851 \n \n262 \n \n533 \n \n8,770 \n \n1,047 \n \n421 \n \n7,255 \n \n1,171 \n \n286 \n \n5,548 \n \n977 \n \n187 \n \n4,424 \n \n792 \n \n127 \n \n3,419 \n \n601 \n \n83 \n \n2,650 \n \n455 \n \n58 \n \n2,163 \n \n334 \n \n45 \n \n1,694 \n \n240 \n \n26 \n \n1,494 \n \n183 \n \n15 \n \n1,165 \n \n126 \n \n7 \n \n783 \n \n78 \n \n8 \n \n1,857 \n \n103 \n \n11 \n \nTotals \n \n45,073 \n \n6,369 \n \n1,807 \n \nPSERS June 30, 2020 \n \nAmount of Monthly Benefit \n \n$ \n \n1 - 100 \n \n101 - 200 \n \n201 - 300 \n \n301 - 400 \n \n401 - 500 \n \nover 500 \n \nTotals \n \nRetirement Type \n \nService Disability Survivor \n \n87 \n \n5 \n \n225 \n \n5,780 \n \n33 \n \n194 \n \n5,526 \n \n220 \n \n54 \n \n2,880 \n \n374 \n \n9 \n \n1,799 \n \n278 \n \n6 \n \n1,534 \n \n227 \n \n1 \n \n17,606 \n \n1,137 \n \n489 \n \n(continued) 157 \n \n Statistical Section \nRetired Members by Retirement Type \n \nGJRS June 30, 2020 \nLRS June 30, 2020 \nGMPF June 30, 2020 \n \nAmount of Monthly Benefit \n$ 1 - 1,000 1,001 - 2,000 2,001 - 3,000 3,001 - 4,000 4,001 - 5,000 5,001 - 6,000 6,001 - 7,000 7,001 - 8,000 over 8,000 \nTotals \n \nRetirement Type \n \nService Disability Survivor \n \n20 \n \n-- \n \n2 \n \n22 \n \n-- \n \n8 \n \n26 \n \n-- \n \n5 \n \n40 \n \n-- \n \n3 \n \n27 \n \n2 \n \n4 \n \n17 \n \n-- \n \n-- \n \n37 \n \n-- \n \n-- \n \n70 \n \n-- \n \n-- \n \n131 \n \n-- \n \n-- \n \n390 \n \n2 \n \n22 \n \nAmount of Monthly Benefit \n \n$ \n \n1 - 250 \n \n251 - 500 \n \n501 - 750 \n \n751 - 1,000 \n \nover 1,000 \n \nTotals \n \nRetirement Type \n \nService Disability Survivor \n \n20 \n \n-- \n \n-- \n \n126 \n \n-- \n \n10 \n \n66 \n \n-- \n \n3 \n \n23 \n \n-- \n \n3 \n \n16 \n \n-- \n \n2 \n \n251 \n \n-- \n \n18 \n \nAmount of Monthly Benefit Retirement Type \n \nService \n \n$ \n \n1 - 49 \n \n50 - 100 \n \nover 100 \n \n-- 1,223 \n-- \n \nTotals \n \n1,223 \n \n158 \n \n Statistical Section \nRetired Members by Optional Form of Benefit \n \nERS June 30, 2020 \n \nAmount of Monthly Benefit \n \nForm of Benefit \n \nMaximum Plan Option 1 Option 2 Option 3 Option 4 Option 5A Option 5B \n \n$ \n \n1 - 500 \n \n501 - 1,000 \n \n1,001 - 1,500 \n \n1,501 - 2,000 \n \n2,001 - 2,500 \n \n2,501 - 3,000 \n \n3,001 - 3,500 \n \n3,501 - 4,000 \n \n4,001 - 4,500 \n \n4,501 - 5,000 \n \n5,001 - 5,500 \n \n5,501 - 6,000 \n \nover 6,000 \n \n1,332 \n \n419 \n \n1,261 \n \n433 \n \n970 \n \n170 \n \n61 \n \n4,249 \n \n1,260 \n \n1,997 \n \n689 \n \n1,405 \n \n430 \n \n208 \n \n3,511 \n \n1,137 \n \n1,511 \n \n648 \n \n1,152 \n \n502 \n \n251 \n \n2,766 \n \n995 \n \n983 \n \n574 \n \n730 \n \n356 \n \n308 \n \n2,137 \n \n751 \n \n700 \n \n511 \n \n604 \n \n353 \n \n287 \n \n1,637 \n \n552 \n \n502 \n \n348 \n \n634 \n \n214 \n \n216 \n \n1,135 \n \n410 \n \n344 \n \n308 \n \n618 \n \n174 \n \n174 \n \n870 \n \n266 \n \n280 \n \n206 \n \n640 \n \n134 \n \n146 \n \n624 \n \n196 \n \n177 \n \n174 \n \n602 \n \n63 \n \n124 \n \n498 \n \n120 \n \n136 \n \n173 \n \n617 \n \n63 \n \n85 \n \n320 \n \n112 \n \n92 \n \n110 \n \n569 \n \n44 \n \n51 \n \n208 \n \n48 \n \n65 \n \n112 \n \n360 \n \n28 \n \n48 \n \n421 \n \n118 \n \n163 \n \n219 \n \n924 \n \n47 \n \n79 \n \nTotals \n \n19,708 \n \n6,384 \n \n8,211 \n \n4,505 \n \n9,825 \n \n2,578 \n \n2,038 \n \nMaximum Plan Single life annuity \n \nOption 1 \n \nReduced single life annuity with a guarantee of the remainder of the annuity savings fund account (contributions and interest), if any, to be paid upon the retiree's death \n \nOption 2 \n \n100% joint and survivor annuity with a popup option upon divorce \n \nOption 3 \n \n50% joint and survivor annuity with a popup option upon divorce \n \nOption 4 \n \nVarious options, including a specified monthly amount payable to a beneficiary upon the retiree's death, several period certain annuities of varying length, and a five-year accelerated benefit \n \nOption 5A \n \n100% joint and survivor annuity with a popup option upon divorce or the death of the beneficiary before the retiree \n \nOption 5B \n \n50% joint and survivor annuity with a popup option upon divorce or the death of the beneficiary before the retiree \n \n(continued) 159 \n \n Statistical Section \nRetired Members by Optional Form of Benefit \n \nPSERS June 30, 2020 \n \nAmount of Monthly Benefit \n \n$ \n \n1 - 100 \n \n101 - 200 \n \n201 - 300 \n \n301 - 400 \n \n401 - 500 \n \nover 500 \n \nForm of Benefit \n \nMaximum Plan Option AA Option AB Option AC Option AD Option B \n \n-- \n \n33 \n \n249 \n \n3,876 \n \n1,210 \n \n390 \n \n4,638 \n \n619 \n \n216 \n \n2,659 \n \n361 \n \n90 \n \n1,808 \n \n153 \n \n51 \n \n1,617 \n \n77 \n \n32 \n \n6 \n \n22 \n \n7 \n \n10 \n \n154 \n \n367 \n \n4 \n \n84 \n \n239 \n \n7 \n \n36 \n \n110 \n \n6 \n \n13 \n \n52 \n \n4 \n \n2 \n \n30 \n \nTotals \n \n14,598 \n \n2,453 \n \n1,028 \n \n37 \n \n311 \n \n805 \n \nMaximum Plan Single life annuity \n \nOption AA \n \n100% joint and survivor annuity \n \nOption AB \n \n50% joint and survivor annuity \n \nOption AC \n \nJoint and survivor annuity with a specified monthly amount payable to a beneficiary \n \nOption AD \n \nJoint and survivor annuity with the amount payable to a beneficiary limited by the age difference between the retiree and the beneficiary \n \nOption B \n \nAnnuity for a guaranteed period of time (5, 10, 15, or 20 years). If retiree outlives guarantee period, there is no benefit due after retiree's death \n \n(continued) 160 \n \n Statistical Section \nRetired Members by Optional Form of Benefit \n \nGJRS June 30, 2020 \n \nAmount of Monthly Benefit \n \nSpousal Maximum Plan Coverage Option 1 \n \nForm of Benefit Option 2 Option 3 Option 4A Option 4B Option 4C \n \n$ 1 - 1,000 1,001 - 2,000 2,001 - 3,000 3,001 - 4,000 4,001 - 5,000 5,001 - 6,000 6,001 - 7,000 7,000 - 8,000 over 8,000 \n \n1 \n \n21 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n3 \n \n27 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n5 \n \n26 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n3 \n \n40 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n5 \n \n28 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n7 \n \n9 \n \n1 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n8 \n \n29 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n22 \n \n48 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n25 106 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \nTotals \n \n79 334 \n \n1 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \nMaximum Plan \n \nSingle life annuity \n \nIndicates the member paid additional contributions to provide a 50% joint and survivor annuity at Spousal Coverage* retirement \n \nOption 1** \n \n100% joint and survivor annuity \n \nOption 2** \n \n66 % joint and survivor annuity \n \nOption 3** \n \n50% joint and survivor annuity \n \nOption 4A** \n \n100% joint and survivor annuity with a popup option upon death of beneficiary before the retiree \n \nOption 4B** \n \n66 % joint and survivor annuity with a popup option upon death of beneficiary before the retiree \n \nOption 4C** \n \n50% joint and survivor annuity with a popup option upon death of beneficiary before the retiree \n \n*Only available if membership start date prior to July 1, 2012 **Only available if membership start date on or after July 1, 2012 \n \n(continued) 161 \n \n Statistical Section \nRetired Members by Optional Form of Benefit \n \nLRS June 30, 2020 \n \nAmount of Monthly Benefit \n \n$ \n \n1 - 250 \n \n251 - 500 \n \n501 - 750 \n \n751 - 1,000 \n \nover 1,000 \n \nForm of Benefit \n \nMaximum Plan Option B1 Option B2 \n \n-- \n \n16 \n \n4 \n \n50 \n \n76 \n \n10 \n \n39 \n \n20 \n \n10 \n \n6 \n \n17 \n \n3 \n \n7 \n \n8 \n \n3 \n \nTotals \n \n102 \n \n137 \n \n30 \n \nMaximum Plan Single life annuity \n \nOption B1 \n \n100% joint and survivor annuity \n \nOption B2 \n \n50% joint and survivor annuity \n \nGMPF and SEAD - OPEB June 30, 2020 \nThe GMPF Plan provides a benefit only in one form, a life annuity. All 1,223 current retirees, therefore, have this same form of benefit. The SEAD-OPEB plan provides only a lump sum death benefit to a member's beneficiary(ies). \n \n162 \n \n Statistical Section \nPrincipal Participating Employers FY11 \nERS Department of Corrections Department of Behavioral Health and Developmental Disabilities Department of Transportation Department of Labor Department of Juvenile Justice Department of Natural Resources Department of Human Services Department of Public Safety Department of Community Health Department of Revenue \nTotal Top Employers Total ERS Member Count PSERS Gwinnett County Schools Cobb County Schools Dekalb County Schools Clayton County Schools Muscogee County Schools Cherokee County Schools Henry County Schools Forsyth County Schools Richmond County Schools Houston County Schools \nTotal Top Employers Total PSERS Member Count GJRS Council of Superior Court Judges Council of State Court Judges Prosecuting Attorney's Council Council of Juvenile Judges \nTotal Top Employers Total GJRS Member Count \nData for SEAD-OPEB is not available. \n \nMember Count % of Total Plan \n \n12,102 6,533 4,599 3,687 3,494 1,991 1,918 1,630 1,574 1,069 \n38,597 66,081 \n \n18.3 % 9.9 7.0 5.6 5.3 3.0 2.9 2.5 2.4 1.6 \n58.4 \n \n3,936 \n \n10.0 \n \n2,458 \n \n6.3 \n \n2,269 \n \n5.8 \n \n1,279 \n \n3.3 \n \n942 \n \n2.4 \n \n904 \n \n2.3 \n \n892 \n \n2.3 \n \n881 \n \n2.2 \n \n859 \n \n2.2 \n \n722 \n \n1.8 \n \n15,142 \n \n38.6 \n \n39,255 \n \n202 \n \n39.8 \n \n114 \n \n22.4 \n \n95 \n \n18.7 \n \n72 \n \n14.2 \n \n483 \n \n95.1 \n \n508 \n \n163 \n \n Statistical Section \nPrincipal Participating Employers FY20 \nERS Department of Corrections Department of Behavioral Health and Developmental Disabilities Department of Transportation Department of Human Services Department of Juvenile Justice Department of Community Supervision Department of Public Safety Department of Natural Resources Department of Labor Department of Public Health \nTotal Top Employers Total ERS Member Count PSERS Gwinnett County Schools Cobb County Schools Dekalb County Schools Clayton County Schools Forsyth County Schools Chatham County Schools Houston County Schools Muscogee County Schools Richmond County Schools Cherokee County Schools \nTotal Top Employers Total PSERS Member Count GJRS Council of Superior Court Judges Council of State Court Judges Council of Juvenile Judges Solicitor General \nTotal Top Employers Total GJRS Member Count SEAD - OPEB Department of Corrections Department of Transportation Department of Human Services Department of Behavioral Health and Developmental Disabilities Department of Juvenile Justice Department of Natural Resources Department of Community Supervision Department of Public Safety Department of Labor Georgia Bureau of Investigation \nTotal Top Employers Total Active Member Count \n164 \n \nMember Count % of Total Plan \n \n8,110 3,980 3,808 3,459 2,842 1,877 1,779 1,728 1,000 \n936 \n29,519 57,059 \n \n14.2 % 7.0 6.7 6.1 5.0 3.3 3.1 3.0 1.8 1.6 \n51.7 \n \n3,489 \n \n10.0 \n \n2,323 \n \n6.7 \n \n2,120 \n \n6.1 \n \n1,192 \n \n3.4 \n \n1,037 \n \n3.0 \n \n921 \n \n2.7 \n \n810 \n \n2.3 \n \n765 \n \n2.2 \n \n749 \n \n2.2 \n \n715 \n \n2.1 \n \n14,121 \n \n40.7 \n \n34,736 \n \n210 \n \n40.2 \n \n125 \n \n24.0 \n \n74 \n \n14.2 \n \n58 \n \n11.1 \n \n467 \n \n89.5 \n \n522 \n \n2,844 \n \n13.5 \n \n1,886 \n \n9.0 \n \n1,349 \n \n6.4 \n \n1,077 \n \n5.1 \n \n825 \n \n3.9 \n \n801 \n \n3.8 \n \n752 \n \n3.6 \n \n685 \n \n3.3 \n \n529 \n \n2.5 \n \n363 \n \n1.7 \n \n11,111 \n \n52.9 \n \n21,020 \n \n Statistical Section \nSchedule of Revenue and Expenses State Employees' Assurance Department Active Members Fund \n \nYear ended June 30, 2020 (In thousands) \nOperating revenue: Insurance premiums Total operating revenue \n \n2020 \n \n$ \n \n547 \n \n547 \n \n2019 \n531 531 \n \n2018 \n540 540 \n \nOperating expenses: Death benefits Administrative expenses Total operating expenses Total operating loss \n \n3,588 80 \n3,668 (3,121) \n \n3,424 80 \n3,504 (2,973) \n \n2,972 76 \n3,048 (2,508) \n \nNonoperating revenues (expenses): Allocation of investment income from pooled investment fund \nInvestment expenses \nTotal nonoperating revenues \nChange in net position \n \n16,651 (67) \n16,584 13,463 \n \n19,708 (65) \n19,643 16,670 \n \n24,493 (64) \n24,429 21,921 \n \nTotal net position: Beginning of year End of year \n \n305,877 $ 319,340 \n \n289,207 305,877 \n \n267,286 289,207 \n \n2017 \n599 599 \n4,019 64 \n4,083 (3,484) \n29,847 (62) \n29,785 26,301 \n240,985 267,286 \n \nIn fiscal year 2017, the System adopted the provisions of GASB Statement No. 74 and revised its accounting methodology with regard to the presentation of SEAD-Active, and began reporting it as a proprietary fund. In previous years it was reported as a fiduciary fund. Additional years will be displayed as they become available. \n \n165 \n \n Statistical Section \nSchedule of Membership State Employees' Assurance Department Active Members Fund \n \nFiscal Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 \n \nCovered Lives 55,412 49,212 43,127 38,711 35,142 31,869 28,873 26,032 23,368 21,020 \n \n166 \n \n Statistical Section \nStatistical Data at June 30, 2020 \n \nSystem ERS \nPSERS GJRS LRS \n \nNet Position $13.5 billion $958.2 million $485.9 million \n \nEmployer and Nonemployer Contributions \nOld Plan: 19.91% New Plan: 24.66% \nGSEPS 21.64% ($643.9 million) \n \nEmployee Contributions \nOld Plan: 6% (with 4.75% pickup) \nNew Plan: 1.25% GSEPS: 1.25% ($35.8 million) \n \nActive Members \nOld Plan: (0.05%) 29 New Plan: (36.54%) 20,850 \nGSEPS: (63.41%) 36,180 Total: 57,059 \n \n$32.5 million \n7.83% ($6.5 million) \n \n$36 yr prior July 1, 2012 $90 yr after July 1, 2012 ($2.3 million) \n7.5% +2.5% Spousal, if \napplicable ($5.0 million) \n \n34,736 522 \n \nInactives 63,495 50,276 64 \n \n$34.6 million \n \n0% (None) \n \n8.5% (with 4.75% pickup) \n($325 thousand) \n \n219 \n \n170 \n \nRetirees \nTotal: 53,249 Service: 41,100 Beneficiary: 6,065 Disability: 5,494 Inv. Sep.: 435 Law. Enf.: 155 \n \nAnnual Payment $1.5 billion \n \n19,232 \n \n$66.2 million \n \n414 \n \n$29.3 million \n \n269 \n \n$1.8 million \n \nAverage Monthly Benefit(1) $2,206 \n$288 \n$5,868 \n$526 \n \nGDCP \n \n$138.0 million \n \nNone \n \n7.5% ($14.7 million) \n \n9,633 \n \n119,029 \n \n2 \n \n$10 thousand \n \n$4,868 \n \nSCJRF \n \n$6 thousand \n \n$340 thousand \n \nNone \n \nNone \n \nNone \n \n5 \n \n$340 thousand \n \n$5,035 \n \nDARF \n \n$2 thousand \n \n$34 thousand \n \nNone \n \nSEAD \n \n$1.3 billion \n \nNone \n \nNew Plan: 0.25% Old Plan: 0.50% \n($3.1 million) \n \nGMPF \n \n$29.0 million \n \n$2.6 million \n \n(1) GDCP average benefit payment is an annual amount. \n \nNone \n \nNone No. Insured: \n21,020 14,092 \n167 \n \nNone 1,016 \n66 \n \n3 \nNo. Insured: 44,130 \n1,223 \n \n$34 thousand \n \n$953 \n \nNo. of Claims: 1,298 \nAmt. Pd: $48.0 million \n \nAverage Claim: $36,989 \n \n$1.3 million \n \n$92 \n \n Appendix \nHouse Resolution 1126 \nBy: Representatives Benton of the 31st, Greene of the 151st, Frye of the 118th, Bentley of the 139th, and Erwin of the 28th \nA RESOLUTION \n1 Recognizing and commending the Employees' Retirement System of Georgia on the grand 2 occasion of its 70th anniversary; and for other purposes. \n3 WHEREAS, the Employees' Retirement System of Georgia (ERSGA) was established on 4 January 1, 1950, by an Act of the Georgia General Assembly to provide retirement benefits 5 for all state employees and is governed by a seven-member board of trustees; and \n6 WHEREAS, as of January 2020, ERSGA pension plans serve over 108,000 active members 7 and 72,000 retirees and beneficiaries from over 700 employers around the state; and \n8 WHEREAS, through their mission to be the guardian of the State of Georgia's retirement 9 plans, ERSGA employees strive to best serve the retirement needs of current and retired state 10 employees; and \n11 WHEREAS, ERSGA demonstrates an unwavering commitment to integrity, operational 12 excellence, and customer service to deliver accurate and timely retirement benefits; and \n13 WHEREAS, ERSGA also demonstrates leadership with legislative issues, continuous 14 improvement through the areas of data security and communications, and innovation with 15 process improvements to best serve the retirement needs of current and future members; and \n16 WHEREAS, ERSGA promotes retirement education to enhance the lives of Georgia's 17 dedicated state employees and to promote a dignified retirement for members, retirees, and 18 their beneficiaries; and \n19 WHEREAS, this remarkable organization has established a glowing reputation of renown 20 throughout Georgia for its ability to accommodate changes in retirement service, and it 21 continues to meet the diversified needs of its members with efficient and professional 22 service; and \n23 WHEREAS, it is abundantly fitting and proper that the outstanding accomplishments of this 24 extraordinary organization be appropriately recognized. \n25 NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES that 26 the members of this body recognize and commend the Employees' Retirement System of 27 Georgia on the grand occasion of its 70th anniversary. \n28 BE IT FURTHER RESOLVED that the Clerk of the House of Representatives is authorized 29 and directed to make an appropriate copy of this resolution available for distribution to the 30 Employees' Retirement System of Georgia. \n168 \n \n Appendix \nSenate Resolution 760 \nBy: Senators Black of the 8th, Robertson of the 29th, Hufstetler of the 52nd, Rhett of the 33rd and Henson of the 41st \nA RESOLUTION \n1 Recognizing and commending the Employees' Retirement System of Georgia on the grand 2 occasion of its 70th anniversary; and for other purposes. \n3 WHEREAS, the Employees' Retirement System of Georgia (ERSGA) was established on 4 January 1, 1950, by an Act of the Georgia General Assembly to provide retirement benefits 5 for all state employees and is governed by a seven-member board of trustees; and \n6 WHEREAS, as of January 2020, ERSGA pension plans serve over 108,000 active members 7 and 72,000 retirees and beneficiaries from over 700 employers around the state; and \n8 WHEREAS, through their mission to be the guardian of the State of Georgia's retirement 9 plans, ERSGA employees strive to best serve the retirement needs of current and retired state 10 employees; and \n11 WHEREAS, this distinguished organization demonstrates an unwavering commitment to 12 integrity, operational excellence, and customer service to deliver accurate and timely 13 retirement benefits; and \n14 WHEREAS, ERSGA also demonstrates leadership with legislative issues, continuous 15 improvement through the areas of data security and communications, and innovation with 16 process improvements to best serve the retirement needs of current and future members; and \n17 WHEREAS, ERSGA promotes retirement education to enhance the lives of Georgia's 18 dedicated state employees and to promote a dignified retirement for members, retirees, and 19 their beneficiaries; and \n20 WHEREAS, it is abundantly fitting and proper that the outstanding accomplishments of this 21 organization be appropriately recognized. \n22 NOW, THEREFORE, BE IT RESOLVED BY THE SENATE that the members of this body 23 recognize and commend the Employees' Retirement System of Georgia on the grand 24 occasion of its 70th anniversary. \n25 BE IT FURTHER RESOLVED that the Secretary of the Senate is authorized and directed 26 to make an appropriate copy of this resolution available for distribution to the Employees' 27 Retirement System of Georgia. \n169 \n \n Appendix \nCongratulations from Our Members and Retirees! \n\"Happy Birthday! You guys have a big, and often thankless, job. I can only say that while I was working you were very positive and helpful when I called you with questions. Now that I am retired I get the same friendliness and helpfulness. Y'all are good people, competent people, and deserving of accolades. It just occurred to me that your 70th year is also my 70th year (born 10-04-50). I never confess that (except my barber). I only confess to 29 of those years. Last year my son sent me a \"Happy 50th anniversary of your 29th birthday\" card. Again, I say \"Thank you.\" You guys are great.\" - cwalters150 \n\"Congratulations!!\" - Mary C. \n\"Congratulations!! 70 years is a long time for good service. Please continue making our retirement a pleasant transition. God Bless You.\" - Sandra \n\"Thank you for all that is being done to protect our retirement!\" - Dee Dee R. \n\"CONGRATULATIONS!!! And thank you for your service to to the State Retirees.\" - Bernice B., December 1, 2000 Retiree \n\"I retired from the Department of Family and Children Services in 2004. I am thankful everyday for my retirement benefits and the guardians of ERSGA.\" - Gratefully, Doris B. \n\"Thank you for having employees that are very helpful when I have a question. Keep up the great work.\" - A retiree. Dale H. \n\"Great results \u0026 good communications. Appreciated the recent COLA bonus. Thanks!\" - Carl E. \n\"Happy 70th Birthday!!\" - Larry S. \n\"Congrats to ERSGA for 70 Years for us Current Retires. I am thankful for having retired on May, 2001. I worked for the State of Georgia for 32 years and 7 months. I am a pride retiree and so congratulations again. Please continue with the great work for our future retirees.\" - Josephine S. of Americus, Georgia. \n170 \n \n Appendix \nState Charitable Contributions Program (SCCP) Awards \n171 \n \n "},{"id":"dlg_ggpd_y-ga-be400-b-pa1-b2019-belec-p-btext","title":"Comprehensive annual financial report, 2019 June 30","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":null,"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Employees' Retirement System"],"dc_date":["2019-06-30"],"dcterms_description":["Began with: 2010.","Report year ends June 30.","Description based on: 2010; title from PDF title page (Georgia Government Publications database, viewed September 21, 2016).","Latest issue consulted: 2014 (viewed September 21, 2016)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. Employees' Retirement System"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Employees' Retirement System of Georgia"],"dcterms_title":["Comprehensive annual financial report, 2019 June 30"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-be400-b-pa1-b2019-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-be400-b-pa1-b2019-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["annual reports"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"Employees' Retirement System of Georgia \nComprehensive Annual Financial Report \n \nFiscal Year Ended June 30, 2019 \nA component unit of the State of Georgia \n \nFinding the Hidden Gems in Georgia \n \n2 \nProvidence Canyon, Lumpkin \n2019 \na \n \n Our Mission \nOur mission is to be the guardian of the State of Georgia's retirement plans and promote a dignified retirement for the members, retirees, and their beneficiaries. Our vision is to demonstrate an unwavering commitment to delivering accurate and timely retirement benefits utilizing a knowledgeable staff and state-of-the-art technology to best serve the retirement needs of current and future members. \nOur Values \nOur Core Values are: Integrity Customer Service Operational Excellence Continuous Improvement and Innovation \n \n Employees' Retirement System of Georgia \nComprehensive Annual Financial Report \n \nFiscal Year Ended June 30, 2019 \nA component unit of the State of Georgia \n \nFinding the Hidden Gems in Georgia \n \nGoats on the Roof - Tiger (photo: Jerry Jaynes) \nJames A. Potvin Executive Director \nA component unit of the State of Georgia \n \n Table of Contents \n \nIntroductory Section \n \nBoards of Trustees \n \n4 \n \nLetter of Transmittal \n \n5 \n \nCertificate of Achievement for Excellence in \n \n8 \n \nFinancial Reporting \n \nPPCC Recognition Award for Funding \n \n9 \n \nAdministrative Staff and Organization \n \n10 \n \nOrganizational Chart \n \n11 \n \nFinancial Section \n \nIndependent Auditors' Report \n \n13 \n \nManagement's Discussion and Analysis (Unaudited) \n \n15 \n \nBasic Financial Statements: \n \nCombining Statement of Fiduciary Net Position as of \n \n23 \n \nJune 30, 2019 \n \nDefined Benefit Plans-Combining Statement of \n \n24 \n \nFiduciary Net Position as of June 30, 2019 \n \nCombining Statement of Changes in Fiduciary Net \n \n25 \n \nPosition for the Year Ended June 30, 2019 \n \nDefined Benefit Plans-Combining Statement of \n \n26 \n \nChanges in Fiduciary Net Position for the Year \n \nEnded June 30, 2019 \n \nStatement of Net Position-State Employees' Assurance 27 Department Active Members Fund \n \nStatement of Revenues, Expenses, and Changes in \n \n28 \n \nNet Position-State Employees' Assurance \n \nDepartment Active Members Fund \n \nStatement of Cash Flows-State Employees' Assurance 29 Department Active Members Fund \n \nNotes to Financial Statements \n \n30 \n \nRequired Supplementary Information (Unaudited): \n \nDefined Benefit Plans: \n \nSchedule of Employers' and Nonemployers' \n \n68 \n \nContributions \n \nSchedules of Employers' and Nonemployers' Net \n \n70 \n \nPension/OPEB Liability and Related Ratios \n \nSchedules of Changes in Employers' and \n \n72 \n \nNonemployers' Net Pension/OPEB Liability \n \nSchedule of Investment Returns \n \n78 \n \nSchedules of the Systems' Proportionate Share \n \n79 \n \nof the Net OPEB Liability \n \nSchedules of the System's Contributions to OPEB \n \n80 \n \nPlans \n \nNotes to Required Supplementary Information (Unaudited) 81 \n \nAdditional Information: \n \nStatement of Changes in Assets and Liabilities- \n \n86 \n \nSurvivors Benefit Fund \n \nSchedule of Administrative Expenses \n \n87 \n \nContributions and Expenses \n \nSchedule of Investment Expenses \n \n88 \n \nInvestment Section \n \nInvestment Overview \n \n90 \n \nPooled Investment Fund/Rates of Return \n \n91 \n \nAsset Allocation at Fair Value/Investment Summary \n \n92 \n \nSchedule of Fees and Commissions \n \n93 \n \nTwenty Largest Equity Holdings \n \n94 \n \nTop 10 Fixed Income Holdings \n \n95 \n \nActuarial Section \n \nActuary's Certification Letters \n \n97 \n \nSummary of Plan Provisions \n \n109 \n \nSummary of Actuarial Assumptions \n \n111 \n \nActive Members \n \n122 \n \nMember and Employer Contribution Rates \n \n124 \n \nDefined Benefit Plans-Schedules of Funding Progress \n \n126 \n \nSchedule of Retirees Added to and Removed from Rolls \n \n128 \n \nAnalysis of Change in Unfunded Accrued Liability (UAL) \n \n130 \n \nSolvency Test Results \n \n133 \n \nStatistical Section \n \nIntroduction \n \n136 \n \nAdditions by Source-Contribution/Investment Income \n \n137 \n \nDeductions by Type \n \n140 \n \nChanges in Fiduciary Net Position \n \n143 \n \nNumber of Retirees \n \n145 \n \nAverage Monthly Payments to Retirees \n \n146 \n \nAnnual Benefit \n \n147 \n \nWithdrawal Statistics \n \n148 \n \nAverage Monthly Benefit Payment for New Retirees \n \n149 \n \nRetired Members by Retirement Type \n \n154 \n \nRetired Members by Optional Form of Benefit \n \n156 \n \nTop Participatory Employers \n \n160 \n \nSchedule of Revenue and Expenses-State \n \n162 \n \nEmployees' Assurance Department Active \n \nMembers Fund \n \nSchedule of Membership-State Employees' \n \n163 \n \nAssurance Department Active Members Fund \n \nStatistical Data at June 30, 2019 \n \n164 \n \n Introductory Section \n \nIntroductory Section \n \nFinding the Hidden Gems in Georgia \n \nTree Spirits - St. Simons Island \n \n Introductory Section \nBoards of Trustees \nEmployees' Retirement System, Legislative Retirement System, Georgia Defined Contribution Plan, and Georgia Military Pension Fund \n \nEli P. Niepoky Chair \n \nFrank F. Thach, Jr. Vice-Chair \n \nLonice Barrett \n \nLynne Riley \n \nGreg S. Griffin \n \nPublic School Employee Retirement System* \n \nAlex Atwood \n \nVacant \n \nState Employees' Assurance Department** \n \nMichael Lowe \n \nRichard Taylor \n \nMark Butler \n \nGeorgia Judicial Retirement System* \n \nVacant \n \nEllen S. Golden \n \nRon Mullins \n \nVacant \n \n*The PSERS and GJRS boards are comprised of the members of the ERS board and additional members shown under each plan. \n**SEAD -- ERS Board Members Greg S. Griffin, Lynne Riley, Eli P. Niepoky, and Alex Atwood serve in addition to the two members shown above. \n \n4 \n \n Introductory Section \n \nLetter of Transmittal \n \nTwo Northside 75 Atlanta, GA 30318 \n \nNovember 27, 2019 \n \nI am pleased to present the Comprehensive Annual Financial Report of the retirement systems and programs administered by the Employees' Retirement System of Georgia (the System) for the fiscal year ended June 30, 2019. The management of the System is responsible for the accuracy, completeness, and fairness of the presentation, including all disclosures. It is to the best of our knowledge and belief that the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the System. \nProfile of the System \nThe System was established in 1949 by an Act of the Georgia General Assembly to provide benefits for all State employees. Plans administered by the System include the Employees' Retirement System (ERS), the Legislative Retirement System (LRS) established in 1979, the Public School Employees Retirement System (PSERS) established in 1969, the Georgia Defined Contribution Plan (GDCP) established in 1992, the Georgia Judicial Retirement System (GJRS) established in 1998, and the Georgia Military Pension Fund (GMPF) established in 2002. In addition, the System is responsible for administering a Group Term Life Insurance Plan (SEAD), the 457 Plan established in 1974, and the 401(k) Plan established in 1994. A summary of each plan can be found on pages 30 through 40 of this report. The investments of all plans are pooled together into one fund except for the three defined contribution (DC) plans, which are maintained individually. \nThe ERS, LRS, GDCP, GMPF, 401(k), and 457 plans are governed by a 7-member Board of Trustees (Board) made up of 3 ex-officio members, 1 governor-appointed member, and 3 Board-appointed members. PSERS has the same Board as ERS with 2 additional governor- appointed members. GJRS has the same Board as ERS with 3 additional governor-appointed members. \nAs of June 30, 2019, the System's defined benefit (DB) plans served a total of 107,285 active members and 71,944 retirees/beneficiaries from 702 employers around \n \nthe state. There were 69,662 participants in the 401(k) plan with a total investment balance of $1.1 billion. The 457 plan had 12,567 participants with a total investment balance of $639.0 million. There are 470 participating employers from around the state in the 457 and 401(k) plans. \nLegislation \nIn the 2019 session, three Acts were passed by the General Assembly and signed by the Governor, which impact the System: \nAct 244 requires trustees of public retirement systems to complete fiduciary training and educational courses in specified retirement areas beginning July 1, 2019. \nEffective January 1, 2021, Act 256 will allow ERS members to use money from their Peach State Reserves 401(k) and 457 plan to purchase a Supplemental Guaranteed Lifetime Income amount to increase their monthly lifetime retirement income from the ERS pension plan. \nAct 319 is the FY 2020 Appropriations Act and provides funding for an increase in the PSERS multiplier from $15.25 per year of service to $15.50 per year of service beginning July 1, 2019. \nSummary of Financial Information \nThe management of the System is charged with the responsibility of maintaining a sound system of internal accounting controls. The objectives of such a system are to provide management with reasonable assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorizations, and that they are recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. The concept of reasonable assurance recognizes that first, the cost of a control should not exceed the benefits likely to be derived, and second, the evaluation of the cost and benefits requires estimates and judgments by management. \n \n(continued) 5 \n \n Introductory Section \n \nLetter of Transmittal \n \nEven though there are inherent limitations in any system of internal control, the management of the System makes every effort to ensure that through systematic reporting and internal reviews, error or fraud would be quickly detected and corrected. \nPlease refer to the Management's Discussion and Analysis starting on page 15 of this report for an overview of the financial status of the System, including a summary of the System's Fiduciary Net Position, Changes in Fiduciary Net Position, and Asset Allocations. \n \nFor fiscal year 2019, the pooled investment fund generated a return of 6.9%. The fund continues to invest in a mix of high-quality bonds and stocks which allows the System to participate in rising markets while controlling the downside risks. This has proven to be a successful strategy for other markets and for the System. For further information on investments of the pooled fund, please refer to the Investment Section on pages 89 through 95 of this report. \n \nThe objective of the System's pension trust funds is to meet long-term benefit promises through contributions that remain approximately level as a percent of member payroll over time while maintaining an actuarially sound system. Historical information relating to the progress in meeting this objective is presented on pages 126 and 127. The latest actuarial valuations as of June 30, 2018 showed the funded ratio of all of the defined benefit plans increasing. The following table shows the change in funding percentage for each of the pension systems: \n \nERS PSERS LRS GJRS GMPF \n \nFY2017 74.7% 83.6% \n128.2% 107.9% \n50.6% \n \nFY2018 75.3% 83.7% \n130.7% 108.7% \n53.6% \n \nFurther information regarding the funding condition of the pension plans can be found in the Actuarial Section of this report, beginning on page 96. \n \nExcellence in Financial Reporting \nFor the ninth consecutive year, the Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Employees' Retirement System of Georgia for its comprehensive annual financial report for the fiscal year ended June 30, 2018. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. \nA 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. \nInitiatives \nMember Self Service In December of 2018, we launched our new Retirement Online Application (ROLA) process. The new process allows members to fully complete their application process on our secure member web portal (with the exception of a few signature-required items), and the member elections are automatically loaded to our PARIS pension application. This reduces processing time and effort, as well as the potential for keypunching errors by staff. For the months, of March, April, and May, slightly over 1/3 of our Employees' Retirement System retirement applications were completed online. We plan to open the process to the Public School Employees Retirement System next year. \nCommunications and Outreach New outreach initiatives included targeting key agencies for educational presentations and organizing the first Presentation Tour, which was conducted in remote areas of state. The presentations were broken out to better reach the target audiences, and a Financial Literacy section was incorporated into each. In addition, a first full-day Webinara-thon was held during National Retirement Security Week, offering webinars on pension plans and other topics. \n \n(continued) 6 \n \n Introductory Section \n \nLetter of Transmittal \n \nOutreach to members, retirees, and employers was also conducted through the release of newsletters to each group. Aligned with best practices, the outdated long-form newsletter was reformatted with CEM recommendations where applicable to our organization. The new title of \"Retirement Minute\" empathizes the quick nature of the educational and informational e-communications. Email communications were sent to members, employers, and retirees, including a notice regarding the yearly benefit statements. \nTo enhance branding consistently throughout our organization, the new Brand Graphic Standards Manual was completed. The new standards were incorporated into the 2018 Comprehensive Annual Financial Report (CAFR), which was updated with a new theme concept of \"Building a Bridge to a More Comfortable Retirement,\" and featured images of bridges located all over the state. Additionally, the interactive legislative maps were once again produced in an effort to visually highlight ERSGA's impact throughout the state. \n \nrelated statement of changes in fiduciary net position is included in the Financial Section of this report. \nAcknowledgements This report reflects the combined effort of our staff under the Board's leadership. Copies of this report, along with other valuable plan information, can be downloaded from the System's website. \nI would like to express my sincere thanks to the Boards of Trustees for their leadership and support. Many thanks are also extended to the offices of the Governor, Lieutenant Governor, members of the House and Senate Retirement Committees and their staff, members of the House and Senate, and the department officials whose support and assistance have helped ERS accomplish its mission over the years. \nRespectfully submitted, \n \nOther Initiatives In April of this year, we began a collaboration with the Carl Vinson Institute of Government at the University of Georgia to present a nine-month development course to our entire management team. The course will cover such areas as Essentials of Leadership, Communication Skills, Emotional Intelligence, Team Building, and Conflict Management. Those who complete the course will be recognized with certificates at a graduation-style ceremony in January. \nThe new website launched at the end of FY18 and has been an area of ongoing focus in FY19. A secure portal for the Board of Trustees was created, and a common term glossary was developed to help make the information on our website more accessible for our members and retirees. \nPursuant to the funding policies as amended last year, the assumed investment rate of return and discount rate for all of the defined benefit plans were changed. Effective with the June 30, 2018 valuations, the rates were reduced by 0.10% (10 basis points) to 7.3%. Since the actual investment return in FY 2019 (6.9%) was less than the assumed rate of return, the assumed rate is not expected to be changed for the FY 2019 actuarial valuations. \n \nJames A. Potvin, Executive Director Employees' Retirement System of Georgia \n \nOther Information \nIndependent Audit The Board of Trustees requires an annual audit of the financial statements of the System by independent, certified public accountants. The accounting firm of KPMG LLP was selected by the Board. The independent auditors' report on the statement of fiduciary net position and the \n \n7 \n \n Introductory Section \n8 \n \n Introductory Section \nPublic Pension Coordinating Council Recognition Award for Funding 2019 \nPresented to \nEmployees' Retirement System of Georgia \nIn recognition of meeting professional standards for plan funding as set forth in the Public Pension Standards. \nPresented by the Public Pension Coordinating Council, a confederation of National Association of State Retirement Administrators (NASRA) \nNational Conference on Public Employee Retirement Systems (NCPERS) National Council on Teacher Retirement (NCTR) \nAlan H. Winkle Program Administrator \n9 \n \n Introductory Section Administrative Staff and Organization \n \nJames A. Potvin Executive Director \n \nAngie Surface Deputy Director \n \nCharles W. Cary, Jr. CIO - Investment Services \n \nLaura L. Lanier Controller \n \nChris Hackett \nDirector Information Technology \n \nNicole Paisant \nDirector Human Resources \n \nSusan Anderson \nChief Operating Officer \n \nCarolyn Kaplan \nDirector Financial Mgmt Quality Assurance \n \nKelly Moody \nDirector Legislative Affairs \n \nDanielle Jordan \nDirector Communications \n \nConsulting Services \nCavanaugh Macdonald Consulting, LLC - Actuary KPMG LLP - Auditor Alight Solutions - Defined Contribution \nConsultant and Administrator \nInvestment Advisors* \nAlbritton Capital Management Baillie Gifford Overseas Limited Barrow, Hanley, Mewhinney \u0026 Strauss Cooke \u0026 Bieler Fisher Investments Mondrian Investment Partners Limited Sands Capital Management WCM Investment Management \n \nMedical Advisors \nHarold E. Sours, M.D., Atlanta, GA G. Lee Cross, M.D., Atlanta, GA William H. Biggers, M.D., Atlanta, GA Pedro F. Garcia, M.D., Atlanta, GA H. Rudolph Warren, M.D., Dunwoody, GA Quinton Pirkle, M.D., Atlanta, GA Marvin Bittinger, M.D., Gainesville, GA Joseph S. Wilkes, M.D., Sandy Springs, GA Howard A. McMahan, M.D., Marietta, GA \n \n*See page 93 in the Investment Section for a summary of fees paid to investment Advisors \n10 \n \n Organizational Chart \n \nIntroductory Section \n \n11 \n \n Financial Section \nFinding the Hidden Gems in Georgia \nThe Rock Garden, Calhoun \n \n Financial Section \n \nKPMG LLP Suite 2000 303 Peachtree Street, NE Atlanta, GA 30308-3210 \n \nIndependent Auditors' Report \nThe Board of Trustees Employees' Retirement System of Georgia: \n \nReport on the Financial Statements We have audited the accompanying financial statements of the fiduciary activities and the proprietary activity of the Employees' Retirement System of Georgia (the System), a component unit of the State of Georgia, as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the System's basic financial statements as listed in the table of contents. \nManagement's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \nAuditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. \nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk \n \nassessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nOpinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the fiduciary activities and proprietary activity of the System as of June 30, 2019, and the respective changes in financial position and where applicable, cash flows thereof, for the year then ended in accordance with U.S. generally accepted accounting principles. \nOther Matters Required Supplementary Information U.S. generally accepted accounting principles require that the management's discussion and analysis, schedules of employers' and nonemployers' contributions  defined benefit plans, schedules of employers' and nonemployers' net pension/OPEB liability and related ratios  defined benefit plans, schedules of changes in employers' and \n \n13 \n \n Financial Section \n \nnonemployers' net pension/OPEB liability  defined benefit plans, schedule of investment returns, schedules of the System's proportionate share of the Net OPEB Liability, and schedules of the System's contributions to OPEB plans on pages 15-22 and 68-85, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \nSupplementary and Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the System's basic financial statements. The Survivors Benefit Fund statement of changes in assets and liabilities, the schedules of administrative expensescontributions and expense and investment expenses, and introductory, investment, actuarial and statistical sections are presented for purposes of additional analysis and are not a required part of the basic financial statements. \nThe Survivors Benefit Fund statement of changes in assets and liabilities and schedules of administrative expenses - contributions and expenses and investment expenses are the responsibility of management and were derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit \n \nof the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Survivors Benefit Fund statement of changes in assets and liabilities and the schedules of administrative expenses - contributions and expenses and investment expenses are fairly stated in all material respects in relation to the basic financial statements as a whole. \nThe Introductory, Investment, Actuarial, and Statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide an assurance on them. \nOther Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated September 30, 2019 on our consideration of the System's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the System's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the System's internal control over financial reporting and compliance. \nAtlanta, Georgia September 30, 2019 except for the Introductory, Investment, Actuarial, and Statistical sections and the Schedule of Investment Expenses, which are as of November 27, 2019. \n \n(continued) 14 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \nJune 30, 2019 \nThis section provides a discussion and analysis of the financial performance of the Employees' Retirement System of Georgia (the System) for the year ended June 30, 2019. The discussion and analysis of the System's financial performance is within the context of the accompanying basic financial statements, notes to the financial statements, required supplementary schedules, and additional information following this section. \nThe System is responsible for administering a cost-sharing, multiple-employer defined benefit pension plan for various employer agencies of Georgia, along with six other defined benefit pension plans, a defined benefit OPEB plan, three defined contribution plans, and an agency fund, all of which comprise the fiduciary funds. The System is also responsible for administering an enterprise fund, which comprises the proprietary fund. \nThe defined benefit pension plans include: \n Employees' Retirement System (ERS)  Public School Employees Retirement System (PSERS)  Legislative Retirement System (LRS)  Georgia Judicial Retirement System (GJRS)  Georgia Military Pension Fund (GMPF)  Superior Court Judges Retirement Fund (SCJRF)  District Attorneys Retirement Fund (DARF) \nThe defined benefit OPEB plan consists of the State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEAD-OPEB). \nThe defined contribution retirement plans include:  Georgia Defined Contribution Plan (GDCP)  State of Georgia Employees' Qualified Trust Deferred Compensation Plan (401(k) Plan)  State of Georgia Employees' Deferred Compensation Plan (457 Plan) \nThe agency fund consists of the Survivors Benefit Fund (SBF). \nThe enterprise fund consists of the State Employees' Assurance Department Active Members Fund (SEAD-Active). \nOverview of Financial Statements \nA fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The System administers two categories of funds: fiduciary funds and a proprietary fund. Information related to the financial statements of the funds is presented in the notes to the financial statements. \nFiduciary funds are used to account for resources held for the benefit of parties outside of the System. The primary focus of the System's fiduciary funds is the accumulation of resources for and the payment of pension and OPEB benefits. The System maintains four types of fiduciary funds: (1) defined benefit pension trust funds which are used to report resources held in trust for pensions for retirees and beneficiaries covered by ERS, PSERS, LRS, GJRS, GMPF, SCJRF, and DARF (2) a defined benefit OPEB trust fund, which is used to report resources held in trust for other postemployment benefits of retirees and beneficiaries covered by SEAD-OPEB (3) defined contribution pension trust funds, which are used to accumulate contributions and earnings in the accounts of participants covered by GDCP, the 401(k) Plan, and the 457 Plan, and (4) an agency fund, which is used to report resources held by the SBF in a custodial capacity for other plans. \nProprietary funds, which include enterprise and internal services funds, are used to account for the System's activities that are similar to private-sector businesses. The System maintains one proprietary fund, which is an enterprise fund, SEAD-Active. The primary focus of the System's enterprise fund is the accumulation of resources for, \n(continued) 15 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \nand payment of, group term life insurance benefits for active members of ERS, LRS, and GJRS covered by SEADActive. \nThe basic financial statements comprise statements for both fiduciary and proprietary funds. The fiduciary fund financial statements include (1) Combining Statement of Fiduciary Net Position (2) Defined Benefit Plans  Combining Statement of Fiduciary Net Position (3) Combining Statement of Changes in Fiduciary Net Position, and (4) Defined Benefit Plans  Combining Statement of Changes in Fiduciary Net Position. The proprietary fund financial statements include (1) Statement of Net Position (2) Statement of Revenues, Expenses, and Changes in Net Position and (3) Statement of Cash Flows. \nIn addition, the System presents six types of required supplementary schedules, which provide historical trend information about the plan. Four of the schedules are presented from the perspective of the System reporting as the plan and include (1) Schedules of Employers' and Nonemployers' Contributions (2) Schedules of Employers' and Nonemployers' Net Pension/OPEB Liability and Related Ratios (3) Schedules of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability and (4) Schedule of Investment Returns. Two of the schedules are presented from the perspective of the System reporting as the employer for its employees who participate in the State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEAD-OPEB) and the Georgia State Employees Postemployment Benefit Fund (State OPEB Fund) and include the (5) Schedules of the System's Proportionate Share of the Net OPEB Liability and (6) Schedules of the System's Contributions to OPEB Plans. The System also includes in this report additional information to supplement the financial statements. \nThe System prepares its financial statements on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board (GASB). These statements provide information about the System's overall financial status. \nFinancial Highlights \nThe highlights of the fiduciary funds of the System are as follows: \n The net position of the fiduciary funds increased by $361.2 million, or 2.0%, from $17.9 billion at June 30, 2018 to $18.3 billion at June 30, 2019. The increase in net position from 2018 to 2019 was primarily due to positive fixed income and equity market returns. \n For the year ended June 30, 2019, the total additions to net position were $2.1 billion compared to $2.4 billion for the year ended June 30, 2018. For the year ended June 30, 2019, the additions consisted of employer, nonemployer contributing entities (nonemployer), and member contributions totaling $934.0 million, insurance premiums of $3.3 million, net investment income of $1.2 billion, and participant fees of $0.6 million. \n Net investment income of $1.2 billion in 2019 (comprising interest and dividend income, the change in fair value of investments, and other, reduced by investment expenses) represents a decrease of $353.4 million, or 23.4%, compared to the net investment income of $1.5 billion for the year ended June 30, 2018. The change in net investment income was primarily due to more moderate equity gains in 2019 compared to 2018. \n The total deductions from net position were $1.7 billion for the years ended June 30, 2019 and 2018. For the year ended June 30, 2019, the deductions primarily consisted of benefit payments. \nThe highlights of the proprietary fund of the System are as follows:  The net position of the proprietary fund increased by $16.7 million to $305.9 million at June 30, 2019 compared to $289.2 million at June 30, 2018. The increase in net position from 2018 to 2019 was primarily due to positive fixed income and equity market returns.  For the year ended June 30, 2019, total operating loss was $3.0 million compared to $2.5 million for the year ended June 30, 2018. The increase relates primarily to an increase in the number of active members who received death benefits during the year. \n(continued) 16 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \n Net investment income allocated from the pooled investment fund of $19.6 million in 2019 represents a decrease of $4.8 million, or 19.6%, compared to net investment income allocated from the pooled investment fund of $24.4 million for the year ended June 30, 2018. The change in investment income allocated from the pooled investment fund was primarily due to more moderate equity gains in 2019 compared to 2018. \nDescription of the Financial Statements \nFiduciary Funds \nThe Combining Statement of Fiduciary Net Position is the statement of financial position presenting information that includes the fiduciary funds' assets and liabilities, with the balance representing the Net Position Restricted for Pensions and OPEB. The investments of the funds in this statement are presented at fair value. This statement is presented on page 23. \nThe Combining Statement of Changes in Fiduciary Net Position reports how the fiduciary funds' net position changed during the fiscal year. The additions include contributions to the retirement plans from employers, nonemployers, and members; group term life insurance premiums; participant fees; and net investment income, which includes interest and dividends and the net increase in the fair value of investments, net of investment expenses. The deductions include benefit payments, life insurance death benefit payments, refunds of member contributions and interest, and administrative expenses. This statement is presented on page 25. \nThe Defined Benefit Plans' Combining Statement of Fiduciary Net Position and the Combining Statement of Changes in Fiduciary Net Position present the financial position and changes in financial position for each of the defined benefit plans administered by the System. These statements are on pages 24 and 26, respectively. \nProprietary Funds \nThe Statement of Net Position is the statement of financial position presenting information that includes the assets and liabilities, with the balance representing the net position. This statement is presented on page 27. \nThe Statement of Revenues, Expenses, and Changes in Net Position distinguishes operating revenues and expenses from nonoperating items. Principal operating revenues result from insurance premiums from members, while operating expenses result from death benefit payments and administrative expenses. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. This statement is presented on page 28. \nThe Statement of Cash Flows provides information about cash receipts and cash payments during the year. When used in conjunction with related disclosures and information in the other financial statements, the statement provides relevant information about the plan's ability to generate future net cash flows, the plan's ability to meet its obligations as they come due, and presents the reasons for differences between operating income and associated cash receipts and payments. This statement is presented on page 29. \nNotes to Financial Statements are presented to provide the information necessary for a full understanding of the financial statements. The notes to the financial statements begin on page 30. \nRequired Supplementary Information begins on page 68. The required schedules are discussed as follows:  The Schedule of Employers' and Nonemployers' Contributions presents historical trend information for the last 10 consecutive fiscal years about the required contributions and the percent of required contributions actually contributed. \n The Schedule of Employers' and Nonemployers' Net Pension/OPEB Liability and Related Ratios presents the components of the net pension/OPEB liability as of the fiscal year end and the fiduciary net position as a \n(continued) 17 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \nRequired Supplementary Information (continued) percentage of the total pension/OPEB liability as of that date. This trend information will be accumulated to display a 10-year presentation. \n The Schedule of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability presents total net pension/OPEB liability and is measured as total pension/OPEB liability less the amount of the fiduciary net position. This trend information will be accumulated to display a 10-year presentation. \n The Schedule of Investment Returns presents historical trend information about the annual money-weighted rate of return on plan investments, net of plan investment expense. This trend information will be accumulated to display a 10-year presentation. \n The Schedule of the System's Proportionate Share of the Net OPEB Liability presents historical trend information about the System's proportionate share of the net OPEB liability (asset) for its employees who participate in the SEAD-OPEB plan and the State OPEB Fund. This trend information will be accumulated to display a 10-year presentation. \n The Schedule of the System's Contributions to OPEB Plans presents historical trend information about the System's contributions for its employees who participate in the SEAD-OPEB plan and the State OPEB Fund. This trend information will be accumulated to display a 10-year presentation. \nThree of the required schedules above, the Schedules of Employers' and Nonemployers' Contributions, the Schedules of Employers' and Nonemployers' Net Pension/OPEB Liability and Related Ratios, and the Schedules of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability are applicable to five of the defined benefit pension plans (ERS, PSERS, LRS, GJRS, and GMPF) and the defined benefit OPEB plan (SEAD-OPEB). Notes to Required Supplementary Information are presented to provide the information necessary for a full understanding of the supplementary schedules. The notes to required supplementary information begin on page 81. Additional information is presented, beginning on page 86, and includes the Statement of Changes in Assets and Liabilities for the Survivors Benefit Fund, which presents additions to and deductions from the fund and the Schedule of Administrative Expenses  Contributions and Expenses which presents the expenses incurred in the administration of the plans and funds, and the contributions from each plan and fund to provide for these expenses. \n(continued) 18 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) Financial Analysis of the System \nA summary of the System's net position of the fiduciary funds at June 30, 2019 is as follows (dollars in thousands): \n \nAssets: Cash, cash equivalents, and receivables Investments Capital assets, net Net OPEB asset Total assets \nDeferred outflows of resources \nLiabilities: Due to brokers, accounts payable, and insurance premiums payable Due to other funds/plans and participating systems Net OPEB liability Total liabilities \nDeferred inflows of resources Net position \n \nNet position \n \n2019 \n \n2018 \n \n$ 533,422 18,226,094 6,552 541 18,766,609 1,156 \n \n366,532 18,000,993 \n6,738 501 \n18,374,764 938 \n \n36,003 \n \n30,882 \n \n464,539 \n \n437,628 \n \n4,749 \n \n7,571 \n \n505,291 \n \n476,081 \n \n2,389 \n \n701 \n \n$ 18,260,085 17,898,920 \n \nAmount change \n \nPercentage change \n \n166,890 225,101 \n(186) 40 \n391,845 218 \n \n45.5% 1.3 (2.8) 8.0 2.1 \n23.2 \n \n5,121 26,911 (2,822) 29,210 \n1,688 361,165 \n \n16.6 6.1 \n(37.3) 6.1 \n240.8 2.0 \n \nA summary of the System's net position of the proprietary fund at June 30, 2019 is as follows (dollars in thousands): \n \nAssets: Cash, cash equivalents, and receivables Investments Total assets \nLiabilities: Accounts payable and other Net position \n \nNet position 2019 2018 \n \nAmount change \n \nPercentage change \n \n$ \n \n124 \n \n305,795 \n \n305,919 \n \n162 289,087 289,249 \n \n(38) 16,708 16,670 \n \n(23.5)% 5.8 5.8 \n \n42 \n \n42 \n \n-- \n \n-- \n \n$ 305,877 289,207 \n \n16,670 \n \n5.8 \n \n(continued) 19 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \nThe following table presents the investment allocation at June 30, 2019, and 2018: \n \nAsset allocation at June 30 (in percentages): Equities: Domestic International Private equity Domestic obligations: U.S. treasuries Corporate and other bonds International obligations: Corporates Commingled funds \nAsset allocation at June 30 (in thousands): Equities: Domestic International Private equity Domestic obligations: U.S. treasuries Corporate and other bonds International obligations: Corporates Mutual funds Commingled funds \n \n2019 \n45.8 % 15.3 \n1.8 \n20.8 6.1 \n0.5 9.7 \n \n2018 \n46.3 % 15.6 \n1.2 \n18.8 8.2 \n1.1 8.8 \n \n$ 8,350,863 $ 8,332,421 \n \n2,786,569 \n \n2,807,854 \n \n335,306 \n \n221,904 \n \n3,784,262 1,104,643 \n \n3,374,310 1,475,432 \n \n95,134 8,114 \n1,761,203 \n \n190,353 7,228 \n1,591,491 \n \n$ 18,226,094 $ 18,000,993 \n \nThe total investment portfolio increased by $225.1 million, or 1.3%, from 2018, which is due to positive fixed income and equity market returns. \nInvestment performance is calculated using a time-weighted rate of return using the Daily Valuation Method. The time-weighted rate of return for the fiscal year ended June 30, 2019, was 6.9% with a 6.5% return for equities, a 19.6% return for private equity, and a 7.1% return for fixed income. The five-year annualized rate of return at June 30, 2019, was 6.7% with an 8.4% return for equities, a 13.5% return for private equity, and a 2.6% return for fixed income. \n \n(continued) 20 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \nA money-weighted return is weighted by the amount of dollars in the fund at the beginning and end of the performance period. A money-weighted return is highly influenced by the timing of cash flows into and out of the fund and is a better measure of an entity or person who controls the cash flows into or out of the fund. The nondiscretionary cash flows for the plan, primarily contributions and benefit payments, have a considerable impact on the money-weighted returns of the portfolio. The money-weighted rate of return for the fiscal year ended June 30, 2019, was (1.8)%, compared to 0.6% for the fiscal year ended June 30, 2018. \nA summary of the changes in the System's net position of the fiduciary funds for the year ended June 30, 2019 is as follows (dollars in thousands): \n \nAdditions: Employer contributions Nonemployer contributions Member contributions Participant fees Insurance premiums Net investment income Other Total additions \nDeductions: Benefit payments Refunds Death benefits Administrative expenses Total deductions Net increase in net position \n \nChanges in net position \n \n2019 \n \n2018 \n \nAmount change \n \nPercentage change \n \n$ 692,481 42,620 \n198,928 597 \n3,328 1,156,418 \n13 2,094,385 \n \n690,516 43,982 \n190,091 1,744 3,599 \n1,509,803 15 \n2,439,750 \n \n1,965 (1,362) \n8,837 (1,147) \n(271) (353,385) \n(2) (345,365) \n \n0.3 % (3.1) 4.6 (65.8) (7.5) (23.4) (13.3) (14.2) \n \n1,660,330 19,854 37,416 15,620 \n1,733,220 $ 361,165 \n \n1,608,691 18,538 36,249 16,308 \n1,679,786 759,964 \n \n51,639 1,316 1,167 (688) \n53,434 (398,799) \n \n3.2 7.1 3.2 (4.2) 3.2 (52.5) \n \nAdditions  The System accumulates resources needed to fund benefit payments through contributions and returns on invested funds. In fiscal year 2019, total contributions increased $9.4 million, or 1.0%, primarily due to modest overall salary increases. Net investment income decreased by $353.4 million, or 23.4%, due primarily to equity returns moderating somewhat in fiscal year 2019 compared to 2018. \nDeductions  For fiscal year 2019, total deductions increased $53.4 million, or 3.2%, primarily because of an increase of $51.6 million, or 3.2%, in benefit payments. Pension benefit payments increased due to an increase in the number of retirees and beneficiaries receiving benefits in 2019 in addition to cost of living adjustments of 2% for PSERS members and two one-time benefit payments of 2% for ERS, JRS, and LRS members. Refunds increased by $1.3 million, or 7.1%, which was primarily due to an increase in the number of refunds processed during 2019. \n \n(continued) 21 \n \n Financial Section \n \nManagement's Discussion and Analysis (Unaudited) \nA summary of the changes in the System's net position of the proprietary fund for the year ended June 30, 2019 is as follows (dollars in thousands): \n \nOperating revenue: Insurance premiums Total operating revenue \n \nChanges in net position \n \n2019 \n \n2018 \n \nAmount change \n \nPercentage change \n \n$ \n \n531 \n \n540 \n \n531 \n \n540 \n \n(9) \n \n(1.7) % \n \n(9) \n \n(1.7) \n \nOperating expenses: Death benefits Administrative expenses Total operating expenses Total operating loss \n \n3,424 80 \n3,504 (2,973) \n \n2,972 76 \n3,048 (2,508) \n \n452 4 \n456 (465) \n \n15.2 5.3 \n15.0 (18.5) \n \nNonoperating revenue: \nAllocation of investment income from pooled investment fund, net \nChange in net position \n \n19,643 \n \n$ \n \n16,670 \n \n24,429 21,921 \n \n(4,786) (5,251) \n \n(19.6) (24.0) \n \nOperating and nonoperating revenue  The proprietary fund accumulates resources needed to fund death benefit payments through premiums earned and returns on invested funds. In fiscal year 2019, total premiums earned decreased $9.0 thousand, or 1.7%, primarily due to a decrease in the number of participating members allowed in the plan. Effective January 1, 2009, the plan was closed to new members. Allocation of investment income from the pooled investment fund, net of related expenses, decreased by $4.8 million, or 19.6%, primarily due to equity returns moderating somewhat in fiscal year 2019 compared to 2018. \nOperating expenses  For fiscal year 2019, death benefits increased by $0.5 million, or 15.2%, which was primarily due to an increase in the number of death claims processed during 2019. Administrative expenses increased by $4.0 thousand over the prior year, or 5.3%, primarily due to increased contractual services costs. \nRequests for Information \nThis financial report is designed to provide a general overview of the System's finances for all those with interest in the System's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to Employees' Retirement System of Georgia, Two Northside 75, Suite 300, Atlanta, GA 30318. \n \n(continued) 22 \n \n Financial Section \n \nCombining Statement of Fiduciary Net Position \nJune 30, 2019 (In thousands) \n \nAssets \nCash and cash equivalents \nReceivables: Contributions Interest and dividends Due from brokers for securities sold Other Unremitted insurance premiums \nTotal receivables \nInvestments - at fair value: Domestic obligations: U.S. treasuries Corporate and other bonds International obligations: Corporates Equities: Domestic International Private equity Mutual funds Commingled funds Equity in pooled investment fund \nTotal investments \nCapital assets, net \nNet OPEB asset \nTotal assets \nDeferred outflows of resources \nLiabilities \nAccounts payable and other Due to brokers for securities purchased Insurance premiums payable Due to other funds/plans Due to participating systems Net OPEB liability \nTotal liabilities \nDeferred inflows of resources \nNet position restricted for pensions and OPEB \nSee accompanying notes to financial statements. \n \nDefined benefit plans \n \n$ \n \n28,021 \n \nDefined contribution plans \n \nPooled Investment \nFund \n381,322 \n \nGeorgia Defined Contribution \nPlan \n16,425 \n \n401(k) Plan \n11,633 \n \n457 Plan \n1,549 \n \nAgency fund \n \nSurvivors Benefit Fund \n86 \n \nEliminations -- \n \n38,124 \n \n-- \n \n1,051 \n \n3,946 \n \n492 \n \n-- \n \n46,236 \n \n454 \n \n20 \n \n13 \n \n-- \n \n1,374 \n \n-- \n \n-- \n \n-- \n \n2,318 \n \n-- \n \n-- \n \n246 \n \n112 \n \n478 \n \n-- \n \n-- \n \n-- \n \n-- \n \n40,920 \n \n47,610 \n \n1,505 \n \n4,212 \n \n617 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n(478) \n \n-- \n \n(478) \n \nTotal 439,036 \n43,613 46,723 \n1,374 2,676 \n-- 94,386 \n \n-- -- \n-- \n-- -- -- -- -- 16,282,939 16,282,939 6,552 541 16,358,973 1,156 \n \n19,189 -- \n550 -- -- \n4,749 \n24,488 \n2,389 \n \n$ \n \n16,333,252 \n \n3,696,962 1,083,735 \n95,134 \n8,334,829 2,784,803 \n335,306 -- -- -- \n16,330,769 -- -- \n16,759,701 -- \n2,160 10,149 \n-- -- 16,747,392 -- 16,759,701 -- \n-- \n \n87,300 20,908 \n-- \n-- -- -- -- -- -- 108,208 -- -- 126,138 -- \n488 -- -- -- -- -- \n488 -- \n125,650 \n \n-- -- \n-- \n9,133 740 -- \n3,821 1,134,398 \n-- 1,148,092 \n-- -- 1,163,937 -- \n2,728 -- -- -- -- -- \n2,728 -- \n1,161,209 \n \n-- -- \n-- \n6,901 1,026 \n-- 4,293 626,805 \n-- 639,025 \n-- -- 641,191 -- \n1,217 -- -- -- -- -- \n1,217 -- \n639,974 \n \n-- -- \n-- \n-- -- -- -- -- 158,658 158,658 -- -- 158,744 -- \n-- -- -- 158,744 -- -- 158,744 -- \n-- \n \n-- -- \n-- \n-- -- -- -- -- (16,441,597) (16,441,597) -- -- (16,442,075) -- \n-- -- (478) -- (16,441,597) -- (16,442,075) -- \n-- \n \n3,784,262 1,104,643 \n95,134 \n8,350,863 2,786,569 \n335,306 8,114 \n1,761,203 -- \n18,226,094 6,552 541 \n18,766,609 1,156 \n25,782 10,149 \n72 158,744 305,795 \n4,749 505,291 \n2,389 \n18,260,085 \n \n23 \n \n Financial Section \n \nDefined Benefit Plans - Combining Statement of Fiduciary Net Position \n \nJune 30, 2019 (In thousands) \n \nAssets \nCash and cash equivalents \nReceivables: Contributions Interest and dividends Due from brokers for securities sold Other Unremitted insurance premiums \nTotal receivables \nInvestments - at fair value: Domestic obligations: U.S. treasuries Corporate and other bonds International obligations: Corporates Equities: Domestic International Private equity Mutual funds Commingled funds Equity in pooled investment fund \nTotal investments \nCapital assets, net \nNet OPEB asset \nTotal assets \nDeferred outflows of resources \nLiabilities \nAccounts payable and other Due to brokers for securities purchased Insurance premiums payable Due to other funds/plans Due to participating systems Net OPEB liability \nTotal liabilities \nDeferred inflows of resources \nNet position restricted for pensions and OPEB \nSee accompanying notes to financial statements. \n \nEmployees' Retirement \nSystem \n \n$ \n \n27,147 \n \nPublic School Employees Retirement System \n211 \n \nDefined benefit pension plans \n \nLegislative Retirement \nSystem \n51 \n \nGeorgia Judicial Retirement System \n512 \n \nGeorgia Military Pension \nFund \n84 \n \nSuperior Court Judges \nRetirement Fund \n11 \n \nDistrict Attorneys Retirement \nFund \n2 \n \nDefined benefit OPEB plan \nState Employees' Assurance Department \nOPEB \n3 \n \n37,328 \n \n2 \n \n28 \n \n766 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n2,059 \n \n259 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n478 \n \n39,387 \n \n261 \n \n28 \n \n766 \n \n-- \n \n-- \n \n-- \n \n478 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n13,567,302 \n \n942,101 \n \n34,559 \n \n478,823 \n \n26,404 \n \n-- \n \n-- \n \n1,233,750 \n \n13,567,302 \n \n942,101 \n \n34,559 \n \n478,823 \n \n26,404 \n \n-- \n \n-- \n \n1,233,750 \n \n6,552 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n541 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n13,640,929 \n \n942,573 \n \n34,638 \n \n480,101 \n \n26,488 \n \n11 \n \n2 \n \n1,234,231 \n \n1,156 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n16,936 \n \n986 \n \n97 \n \n719 \n \n71 \n \n5 \n \n-- \n \n375 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n539 \n \n-- \n \n1 \n \n10 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n4,749 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n22,224 \n \n986 \n \n98 \n \n729 \n \n71 \n \n5 \n \n-- \n \n375 \n \n2,389 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n$ \n \n13,617,472 \n \n941,587 \n \n34,540 \n \n479,372 \n \n26,417 \n \n6 \n \n2 \n \n1,233,856 \n \nDefined benefit plans \ntotal \n28,021 \n38,124 -- -- \n2,318 478 \n40,920 \n-- -- \n-- \n-- -- -- -- -- 16,282,939 \n16,282,939 \n6,552 541 \n16,358,973 \n1,156 \n19,189 -- \n550 -- -- \n4,749 \n24,488 2,389 \n16,333,252 \n \n24 \n \n Combining Statement of Changes in Fiduciary Net Position \nYear ended June 30, 2019 (In thousands) \n \nFinancial Section \nDefined contribution plans \n \nAdditions: Contributions: Employer Nonemployer Member Participant fees Insurance premiums Administrative expense allotment \nInvestment income: Net increase in fair value of investments Interest and dividends Other Less investment expenses Allocation of investment income \nNet investment income \nTotal additions \nDeductions: Benefit payments Refunds of member contributions and interest Death benefits Administrative expenses \nTotal deductions \nNet increase in net position \nNet position restricted for pension and OPEB: \nBeginning of year \nEnd of year \nSee accompanying notes to financial statements. \n \nDefined benefit plans \n \nPooled Investment \nFund \n \nGeorgia Defined Contribution \nPlan \n \n401(k) Plan \n \n457 Plan \n \nTotal \n \n$ \n \n645,311 \n \n-- \n \n42,620 \n \n-- \n \n44,316 \n \n-- \n \n-- \n \n-- \n \n3,328 \n \n-- \n \n13 \n \n-- \n \n-- -- -- (9,243) 1,057,131 \n1,047,888 \n1,783,476 \n \n726,417 368,772 \n-- (8,142) (1,087,047) \n-- \n-- \n \n1,538,595 \n \n-- \n \n8,923 \n \n-- \n \n37,416 \n \n-- \n \n10,583 \n \n-- \n \n1,595,517 \n \n-- \n \n187,959 \n \n-- \n \n16,145,293 \n \n-- \n \n$ 16,333,252 \n \n-- \n \n-- -- 14,578 -- -- -- \n \n47,170 -- \n119,770 544 -- -- \n \n-- -- 20,264 53 -- -- \n \n692,481 42,620 \n198,928 597 \n3,328 13 \n \n5,627 2,759 \n-- (62) -- \n8,324 \n22,902 \n \n62,954 252 (67) \n(2,033) -- \n61,106 \n228,590 \n \n38,546 116 \n1,216 (778) -- \n39,100 \n59,417 \n \n833,543 371,899 \n1,149 (20,258) (29,916) \n1,156,418 \n2,094,385 \n \n10 10,931 \n-- 882 \n11,823 \n11,079 \n \n79,644 -- -- \n3,431 \n83,075 \n145,515 \n \n42,081 -- -- \n724 \n42,805 \n16,612 \n \n1,660,330 19,854 37,416 15,620 \n1,733,220 \n361,165 \n \n114,571 125,650 \n \n1,015,694 1,161,209 \n \n623,362 639,974 \n \n17,898,920 18,260,085 \n \n25 \n \n Financial Section \n \nDefined Benefit Plans - Combining Statement of Changes in Fiduciary Net Position \n \nYear ended June 30, 2019 (In thousands) \n \nAdditions: Contributions: Employer Nonemployer Member Participant fees Insurance premiums Administrative expense allotment \nInvestment income: Net increase in fair value of investments Interest and dividends Other Less investment expenses Allocation of investment income \nNet investment income \nTotal additions \n \nEmployees' Retirement \nSystem \n \nPublic School Employees Retirement System \n \nDefined benefit pension plans \n \nLegislative Retirement \nSystem \n \nGeorgia Judicial Retirement System \n \nGeorgia Military Pension \nFund \n \nSuperior Court Judges \nRetirement Fund \n \nDistrict Attorneys Retirement \nFund \n \nDefined benefit OPEB plan \nState Employee's Assurance Department \nOPEB \n \nDefined benefit plans \ntotal \n \n$ \n \n638,989 \n \n-- \n \n-- \n \n3,117 \n \n2,537 \n \n626 \n \n10,220 \n \n30,263 \n \n-- \n \n2,137 \n \n-- \n \n-- \n \n36,252 \n \n2,256 \n \n339 \n \n5,469 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n10 \n \n-- \n \n-- \n \n-- \n \n-- \n \n2 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n(8,058) \n \n(391) \n \n(15) \n \n(189) \n \n(6) \n \n-- \n \n881,462 \n \n60,944 \n \n2,243 \n \n31,016 \n \n1,689 \n \n-- \n \n873,404 \n \n60,553 \n \n2,228 \n \n30,827 \n \n1,683 \n \n-- \n \n1,558,875 \n \n93,072 \n \n2,567 \n \n41,550 \n \n4,220 \n \n628 \n \n37 \n \n5 \n \n645,311 \n \n-- \n \n-- \n \n42,620 \n \n-- \n \n-- \n \n44,316 \n \n-- \n \n-- \n \n-- \n \n-- \n \n3,328 \n \n3,328 \n \n1 \n \n-- \n \n13 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n(584) \n \n(9,243) \n \n-- \n \n79,777 \n \n1,057,131 \n \n-- \n \n79,193 \n \n1,047,888 \n \n38 \n \n82,526 \n \n1,783,476 \n \nDeductions: Benefit payments Refunds of member contributions and interest Death benefits Administrative expenses \nTotal deductions \nNet increase in net position \nNet position restricted for pensions and OPEB: \nBeginning of year \n \n1,443,756 \n \n63,637 \n \n1,856 \n \n27,462 \n \n1,221 \n \n626 \n \n7,691 \n \n609 \n \n70 \n \n553 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n7,142 \n \n1,377 \n \n290 \n \n820 \n \n235 \n \n2 \n \n1,458,589 \n \n65,623 \n \n2,216 \n \n28,835 \n \n1,456 \n \n628 \n \n100,286 \n \n27,449 \n \n351 \n \n12,715 \n \n2,764 \n \n-- \n \n13,517,186 \n \n914,138 \n \n34,189 \n \n466,657 \n \n23,653 \n \n6 \n \nEnd of year \n \n$ 13,617,472 \n \n941,587 \n \n34,540 \n \n479,372 \n \n26,417 \n \n6 \n \nSee accompanying notes to financial statements. \n \n37 \n \n-- \n \n1,538,595 \n \n-- \n \n-- \n \n8,923 \n \n-- \n \n37,416 \n \n37,416 \n \n1 \n \n716 \n \n10,583 \n \n38 \n \n38,132 \n \n1,595,517 \n \n-- \n \n44,394 \n \n187,959 \n \n2 \n \n1,189,462 \n \n16,145,293 \n \n2 \n \n1,233,856 \n \n16,333,252 \n \n26 \n \n Financial Section \nStatement of Net Position State Employees' Assurance Department Active Members Fund \nJune 30, 2019 (In thousands) \n \nAssets: \n \nCash and cash equivalents \n \n$ \n \nReceivables: Unremitted insurance premiums \n \nInvestments - at fair value: Equity share of pooled investment fund \n \nTotal assets \n \nLiabilities: \n \nAccounts payable and other \n \nTotal liabilities \n \nTotal net position \n \n$ \n \nSee accompanying notes to financial statements. \n \n52 \n72 \n305,795 305,919 \n42 42 305,877 \n \n27 \n \n Statement of Revenues, Expenses, and Changes in Net Position State Employees' Assurance Department Active Members Fund \nYear ended June 30, 2019 (In thousands) \n \nFinancial Section \n \nOperating revenue: Insurance premiums Total operating revenue \nOperating expenses: Death benefits Administrative expenses Total operating expenses Total operating loss \nNonoperating revenues (expenses): Allocation of investment income from pooled investment fund Investment expenses Total nonoperating revenues Change in net position \nTotal net position: Beginning of year End of year \nSee accompanying notes to financial statements. \n \n$ \n \n531 \n \n531 \n \n3,424 80 \n3,504 (2,973) \n \n19,708 (65) \n19,643 16,670 \n \n289,207 \n \n$ \n \n305,877 \n \n28 \n \n Financial Section \nStatement of Cash Flows State Employees' Assurance Department Active Members Fund \nYear ended June 30, 2019 (In thousands) \n \nCash flows from operating activities: \n \nInsurance premiums received \n \n$ \n \nDeath benefits paid \n \nAdministrative fees paid \n \nNet cash used in operating activities \n \nCash flows from investing activities: Withdrawals from pooled investment fund Investment expenses paid Net cash provided by investing activities Net increase in cash and cash equivalents \n \nCash and cash equivalents, beginning of year \n \nCash and cash equivalents, end of year \n \n$ \n \nReconciliation of operating loss to net cash used in operating activities: \n \nOperating loss \n \n$ \n \nChanges in assets and liabilities \n \nNet cash used in operating activities \n \n$ \n \nSee accompanying notes to financial statements. \n \n531 (3,424) \n(80) (2,973) \n3,000 (65) \n2,935 (38) \n90 52 \n(2,973) -- \n(2,973) \n \n29 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \n(1) General \n \nThe accompanying basic financial statements of the Employees' Retirement System of Georgia, including all plans and funds administered by the Employees' Retirement System of Georgia (collectively, the System), comprises the Employees' Retirement System of Georgia (ERS), Public School Employees Retirement System (PSERS), Legislative Retirement System (LRS), Georgia Judicial Retirement System (GJRS), Georgia Military Pension Fund (GMPF), Superior Court Judges Retirement Fund (SCJRF), District Attorneys Retirement Fund (DARF), State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEAD-OPEB), Georgia Defined Contribution Plan (GDCP), State of Georgia Employees' Qualified Trust Deferred Compensation Plan (401 (k) Plan), State of Georgia Employees' Deferred Compensation Plan (457 Plan), Survivors Benefit Fund (SBF), and State Employees' Assurance Department Active Members Fund (SEAD-Active). All significant transactions among the various systems, departments, and funds have been eliminated. The Boards of Trustees, comprising active and retired members, ex officio state employees, and appointees by the Governor, are ultimately responsible for the administration of the System. \n(2) Authorizing Legislation and Plan Descriptions \n \nEach plan and fund, including benefit and contribution provisions, was established and can be amended by state law. The following summarizes authorizing legislation and the plan description of each retirement fund: \n(a) ERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees (ERS Board) and has the powers and privileges of a corporation. There were 420 employers and 1 nonemployer contributing entity participating in the plan during 2019. Total participation in ERS at June 30, 2019 was 172,056 as detailed in the following chart: \n \nERS Membership as of June 30, 2019 \n \nInactive members and beneficiaries currently receiving benefits \nInactive members entitled to benefits but not yet receiving benefits \n \n59,207 52,275 60,574 \n \nActive plan members \n \nBenefits \nThe ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the Old Plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are New Plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \n \nUnder the Old Plan, the New Plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service, regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \n \nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the \n(continued) 30 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \napplicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \n \nContributions and Vesting \nMember contributions under the Old Plan are 4% of annual compensation, up to $4,200, plus 6% of annual compensation in excess of $4,200. Under the Old Plan, the state pays member contributions in excess of 1.25% of annual compensation. These state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the New Plan and GSEPS are 1.25% of annual compensation. The state is required to contribute at a specified percentage of active member payrolls, determined annually by actuarial valuation. The state contributions are not at any time refundable to the member or his/her beneficiary. \n \nPursuant to The Official Code of Georgia Annotated (O.C.G.A.) 47-2-292, the employer contributions for local tax commissioners and their employees who took office or were employed prior to July 1, 2012 are funded by the State of Georgia on behalf of the local county employer. Pursuant to O.C.G.A. 47-2-290, the employer contribution for certain State Court employees is funded by the state on behalf of the local county employer. \n \nEmployer and nonemployer contributions as a percentage of covered payroll required for fiscal year 2019 were based on the June 30, 2016 actuarial valuation for the Old Plan, New Plan, and GSEPS, as follows: \n \nEmployer and nonemployer: Normal Employer paid for member Accrued liability \nTotal \n \nOld Plan New Plan GSEPS \n \n1.23 % 4.75 % 18.68 % \n24.66 % \n \n5.98 % --% \n18.68 % \n24.66 % \n \n2.98 % --% \n18.68 % \n21.66 % \n \nMembers become vested after 10 years of membership service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \n \n(continued) 31 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \n(b) PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board, plus two additional trustees, administers PSERS (PSERS Board). There were 187 employers and 1 nonemployer contributing entity participating in the plan during 2019. Total participation in PSERS at June 30, 2019 was 102,971 as detailed in the following chart: \nPSERS Membership as of June 30, 2019 \n \nInactive members and beneficiaries currently receiving benefits \nInactive members entitled to benefits but not yet receiving benefits \nActive plan members \n \n34,768 \n \n18,990 \n \n49,213 \n \nBenefits A member may retire and elect to receive normal monthly retirement benefits after completion of 10 years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of 10 years of service. \nUpon retirement, the member will receive a monthly benefit of $15.25, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. \nContributions and Vesting Individuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board. \nEmployer contributions required for the year ended June 30, 2019 were $777.04 per active member and were based on the June 30, 2016 actuarial valuation. \nMembers become vested after 10 years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \n \n(continued) 32 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \n(c) LRS is a single-employer defined benefit pension plan established by the Georgia General Assembly from 19671971, and later reestablished in 1979, for the purpose of providing retirement allowances for all members of the Georgia General Assembly. LRS is administered by the ERS Board. There was one employer in the plan for 2019. Total participation in LRS at June 30, 2019 was 670 as detailed in the following chart: \nLRS Membership as of June 30, 2019 \n \nInactive members and beneficiaries currently receiving benefits \nInactive members entitled to benefits but not yet receiving benefits \nActive plan members \n \n221 269 \n180 \n \nBenefits A member's normal retirement is after eight years of creditable service and attainment of age 65, or eight years of membership service (four legislative terms) and attainment of age 62. A member may retire early and elect to receive a monthly retirement benefit after completion of eight years of membership service and attainment of age 60; however, the retirement benefit is reduced by 5% for each year the member is under age 62. \nUpon retirement, the member will receive a monthly service retirement allowance of $36, multiplied by the number of years of creditable service. Death benefits are also available through the plan. \n \nContributions and Vesting Member contributions are 8.5% of annual salary. The state pays member contributions in excess of 4.75% of annual compensation. Employer contributions are actuarially determined and approved and certified by the ERS Board. \nThere were no employer contributions required for the year ended June 30, 2019 based on the June 30, 2016 actuarial valuation. \nMembers become vested after eight years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. \nHowever, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \n \n(d) GJRS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1998 for the purpose of providing retirement allowances for judges and solicitors generals of the state courts and juvenile court judges in Georgia, and their survivors and other beneficiaries, superior court judges of the State of Georgia, and district attorneys of the State of Georgia. \nThe GJRS was also created to serve the members and beneficiaries of the Trial Judges and Solicitors Retirement Fund, the Superior Court Judges Retirement System, and the District Attorneys Retirement System (collectively, the Predecessor Retirement Systems). As of June 30, 1998, any person who was an active, inactive, or retired member or beneficiary of the Predecessor Retirement Systems was transferred to GJRS in the same status effective July 1, 1998. All assets of the Predecessor Retirement Systems were transferred to GJRS as of July 1, 1998. The ERS Board and three additional trustees administer GJRS \n(continued) 33 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \n(GJRS Board). There were 93 employers and 1 nonemployer contributing entity participating in the plan during 2019. Total participation in GJRS at June 30, 2019 was 985 as detailed in the following chart: \n \nGJRS Membership as of June 30, 2019 \n \nInactive members and beneficiaries currently receiving benefits \nInactive members entitled to benefits but not yet receiving benefits \nActive plan members \n \n400 521 \n64 \n \nBenefits The normal retirement for GJRS is age 60, with 16 years of creditable service; however, a member may retire at age 60 with a minimum of 10 years of creditable service. \nAnnual retirement benefits paid to members are computed as 66% of state-paid salary at retirement for district attorneys and superior court judges and 66% of the average over 24 consecutive months for trial judges and solicitors, plus 1% for each year of credited service over 16 years, not to exceed 24 years. Early retirement benefits paid to members are computed as the pro rata portion of the normal retirement benefit, based on service not to exceed 16 years. Death, disability, and spousal benefits are also available. \n \nContributions and Vesting Members are required to contribute 7.5% of their annual salary. Those who became members prior to July 1, 2012 must also contribute an additional 2.5% of their annual salary if spousal benefit is elected. Employer contributions are actuarially determined and approved and certified by the GJRS Board. \n \nPursuant to O.C.G.A. 47-23-81, the employer contributions for state court judges and solicitors are funded by the State of Georgia on behalf of the local county employers and pursuant to O.C.G.A. 47-23-82, the employer contributions for juvenile court judges are funded by the state on behalf of local county employers. \nEmployer and nonemployer contributions required for fiscal year 2019 were based on the June 30, 2016 actuarial valuation, as follows: \n \nEmployer and nonemployer: Normal Accrued liability Total \n \n13.67% (5.84) 7.83% \n \nMembers become vested after 10 years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \n \n(e) GMPF is a single-employer defined benefit pension plan established on July 1, 2002 by the Georgia General Assembly for the purpose of providing retirement allowances and other benefits for members of the Georgia National Guard (the National Guard). The ERS Board administers the GMPF. \n \n(continued) 34 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \nMembership As of June 30, 2019, GMPF had 1,148 retirees and beneficiaries currently receiving benefits. Active and inactive plan member information is maintained by one employer, the Georgia Department of Defense. \n \nBenefits A member becomes eligible for benefits upon attainment of age 60, with 20 or more years of creditable service (including at least 15 years of service as a member of the National Guard), having served at least 10 consecutive years as a member of the National Guard immediately prior to discharge, and having received an honorable discharge from the National Guard. \nThe retirement allowance is payable for life in the amount of $50 per month, plus $5 per month for each year of creditable service in excess of 20 years. The maximum benefit is $100 per month. \n \nContributions and Vesting Employer contributions are actuarially determined and approved and certified by the ERS Board. There are no member contributions required. \n \nEmployer contributions required for the year ended June 30, 2019 were $183.20 per active member and were based on the June 30, 2016 actuarial valuation. \n \nA member becomes vested after 20 years of creditable service (including at least 15 years of service as a member of the National Guard), having served at least 10 consecutive years as a member of the National Guard immediately prior to discharge, and having received an honorable discharge from the National Guard. \n \n(f) SCJRF is a single-employer defined benefit pension plan established by the Georgia General Assembly in 1945 for the purpose of providing retirement benefits to the superior court judges of the State of Georgia. SCJRF is directed by its own Board of Trustees (SCJRF Board). The ERS Board and SCJRF Board entered into a contract for ERS to administer the plan effective July 1, 1995. \n \nMembership \nAs of June 30, 2019, SCJRF had seven retirees and beneficiaries currently receiving benefits and no active members. No new members are allowed in SCJRF. \n \nBenefits The normal retirement for SCJRF is age 68, with 19 years of creditable service, with a benefit of two-thirds the salary paid to superior court judges. A member may also retire at age 65, with a minimum of 10 years of creditable service, with a benefit of one-half the salary paid to superior court judges. Death, disability, and spousal benefits are also available. \nContributions and Vesting Employer contributions are not actuarially determined, but are provided on an as-needed basis to fund current benefits. \n(g) DARF is a multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1949 for the purpose of providing retirement benefits to the district attorneys of the state of Georgia. DARF is directed by its own Board of Trustees (DARF Board). The ERS Board and DARF Board entered into a contract for ERS to administer the plan effective July 1, 1995. \nMembership As of June 30, 2019, DARF had three retirees and beneficiaries currently receiving benefits and no active members. No new members are allowed into DARF. \n(continued) 35 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \nBenefits Persons appointed as district attorney emeritus shall receive an annual benefit of $15,000, or one-half of the state salary received by such person as a district attorney for the calendar year immediately prior to the person's retirement, whichever is greater. \nContributions and Vesting Employer contributions are not actuarially determined, but are provided on an as-needed basis to fund current benefits. \n(h) SEAD-OPEB is a cost-sharing multiple-employer defined benefit other postemployment benefit plan created in 2007 by the Georgia General Assembly to amend Title 47 of the O.C.G.A., relating to retirement, so as to establish a fund for the provision of term life insurance to retired and vested inactive members of ERS, LRS, and GJRS. Effective July 1, 2009, no newly hired members of any Georgia public retirement system are eligible for term life insurance under SEAD. The SEAD-OPEB trust fund accumulates the premiums received from the aforementioned retirement systems, including interest earned on deposits and investments of such payments from retired and vested inactive members. There were 456 employers and 1 nonemployer contributing entity participating in the plan during 2019. Total participation in SEAD-OPEB at June 30, 2019 was 67,982 as detailed in the following chart: \n \nSEAD Membership as of June 30, 2019 \n \nRetirees and beneficiaries Terminated employees Active plan members \n \n1,018 \n \n23,368 \n \n43,596 \n \nEmployee contribution rates as a percentage of member's salaries were appropriated for the fiscal year ended June 30, 2019 as follows: ERS Old Plan  0.45% and ERS New Plan, LRS, and GJRS  0.23%. ERS Old Plan members were hired prior to July 1, 1982 and New Plan members were hired on or after July 1, 1982, but prior to January 1, 2009. \nGeorgia law provides that employee contributions to the plan shall be in an amount established by the Board of Trustees (SEAD Board) not to exceed one-half of 1% of the member's earnable compensation. There were no employer contributions required for the fiscal year ended June 30, 2019. \nAccording to the policy terms covering the lives of members, insurance coverage is provided on a monthly, renewable term basis, and no return premiums or cash value are earned. The net position represents the excess accumulation of investment income and premiums over benefit payments and expenses, and is held as a reserve for payment of death benefits under existing policies. \nThe amount of insurance for a retiree with creditable service prior to April 1, 1964 is the full amount of insurance under SEAD-Active in effect on the date of retirement. The amount of insurance for a service retiree with no creditable service prior to April 1, 1964 is 70% of the amount of insurance under SEAD-Active at age 60 or at termination, if earlier. Life insurance proceeds are paid in a lump sum to the beneficiary upon death of the retiree. \n \n(continued) 36 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \nAdministrative costs for the plan are determined based on the plan's share of overhead costs to accumulate and invest funds, actuarial services, and to process benefit payments to beneficiaries. Administrative fees are financed from the assets of the plan. \n(i) GDCP is a defined contribution plan established by the Georgia General Assembly in July 1992 for the purpose of providing retirement allowances for state employees who are not members of a public retirement or pension system and do not participate in Social Security. GDCP is administered by the ERS Board. There were 69 employers participating in the plan during 2019. There were 125,959 members as of June 30, 2019. \n \nBenefits A member may retire and elect to receive periodic payments after attainment of age 65. The payments will be based upon mortality tables and interest assumptions adopted by the ERS Board. If a terminated member has less than $5,000 credited to his/her account, the ERS Board has the option of requiring a lump-sum distribution to the member. Upon the death of a member, a lump-sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary. \n \nContributions and Vesting Members are required to contribute 7.5% of their annual salary and vest immediately in the plan upon contribution. There are no employer contributions. Earnings will be credited to each member's account as adopted by the ERS Board. Upon termination of employment, the amount of the member's account is refundable upon request by the member. \n(j) The 401(k) Plan was established by the State of Georgia Employee Benefit Plan Council in accordance with Georgia Law 1985, as amended, O.C.G.A, Sections 45-18-50 through 45-18-58, and Section 401(k) of the Internal Revenue Code (IRC). On October 1, 1994, activity commenced when the 401(k) Plan became available to employees of the State of Georgia Community Service Boards (CSBs). On December 1, 1998, the 401(k) Plan became available to employees of the Georgia Lottery Corporation (GLC). On July 1, 2005, the Plan became available to employees of Fayette County Board of Education; on July 1, 2006, the Plan became available to employees of Walton County Board of Education; on January 1, 2010, the Plan became available to employees of Henry County Board of Education; and on July 1, 2017, the Plan became available to employees of the Baldwin County Board of Education. \nEffective July 1, 1998, the State of Georgia Employee's Deferred Compensation Group Trust (the Master Trust) was formed for the State of Georgia Deferred Compensation Program to serve as the funding medium for the 401(k) Plan. At that time, the 401(k) Plan began operating on an employee elective deferral basis for all state employees working at least 1,000 hours in a 12-month period. All assets of the 401(k) Plan are held in trust for the exclusive benefit of the participants and their beneficiaries. The assets of the 401(k) Plan and the 457 Plan are commingled in the Master Trust with the respective trusts owning units of the Master Trust. Participant contributions are invested according to the participant's investment election. If the participant does not make an election, investments are automatically defaulted to a Lifecycle Fund based on the participant's date of birth. \nEffective July 1, 2005 (HB275), ERS became the trustee of the 401(k) Plan. Alight Solutions and JPMorgan Chase hold, administer, and invest the assets of the Master Trust. \nContributions and Vesting Participating CSBs, the GLC, and Walton and Henry County Boards of Education offer employer contributions, some matching, some automatic, and some a combination of both, to eligible employees at various rates (limited to a maximum of $275,000 base salary in calendar year 2018 and $280,000 in calendar year 2019). As of January 1, 2009, individual participants may defer up to 80% of eligible compensation, or up to limits prescribed by the IRC (whichever is less). \n \nEffective January 1, 2009, in accordance with O.C.G.A. 47-2-350 through 47-2-360, newly hired state employees, as well as rehired state employees who did not maintain eligibility for the ERS Old Plan or New Plan, are members of GSEPS. From January 1, 2009 to June 30, 2014, the GSEPS tier included \n(continued) 37 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \nautomatic enrollment in the 401(k) Plan at a contribution rate of 1% of salary. Effective July 1, 2014, in accordance with HB764, the employee contribution rate for automatic enrollment increased from 1% to 5%. The state matches 100% of the employee's initial 1% contribution and 50% of contributions above 1% and up to 5%. Therefore, the state will match 3% of salary when an employee contributes at least 5% to the 401(k) Plan. Employee contributions greater than 5% of salary do not receive any additional matching funds. Plan participants who are not employees of the GLC, a CSB, Walton and Henry County Boards of Education, or who are not GSEPS eligible do not receive any employer contributions in their 401(k) Plan. \n \nAll employer contributions are subject to a vesting schedule, which determines eligibility to receive all or a portion of the employer contribution balance at the time of any distribution from the account after separation from all state service. Vesting is determined based on the following schedule: \n \nLess than 1 year 1 2 3 4 5 or more years \n \n--% 20 40 60 80 100 \n \nFor CSB/GLC participants whose services terminated prior to January 1, 2010 but after December 31, 2001, the following vesting schedule applies: \n \nLess than 2 years 2 3 4 5 6 or more years \n \n--% 20 40 60 80 100 \n \nFor CSB/GLC participants whose services terminated prior to January 1, 2002, the following vesting schedule applies: \n \nLess than 3 years 3 4 5 6 7 or more years \n \n--% 20 40 60 80 100 \n \nEmployee contributions and earnings thereon are 100% vested at all times. The 401(k) Plan also allows participants to roll over amounts from other qualified plans to their respective account in the 401(k) Plan on approval by the 401(k) plan administrator. Such rollovers are 100% vested at the time of transfer. \nParticipation As of June 30, 2019, the 401(k) Plan had 69,662 participants with a balance. A total of 468 employers transmitted contributions to the plan during 2019. \nDistributions The participant may receive the value of his or her vested accounts upon attaining age 59.5, qualifying financial hardship, or 30 days after retirement or other termination of service (employer contribution balances are only eligible for distribution upon separation from service). Upon the death of a participant, his or her beneficiary shall be entitled to the vested value of his or her accounts. Employees who die while actively \n \n(continued) 38 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \nemployed and eligible for 401(k) Plan employer matching contributions become fully vested in employer contributions upon death. Distributions are made in installments or in a lump sum. \n \n(k) The 457 Plan was established by the State Personnel Board in accordance with Georgia Law 1974, page 198 as amended, O.C.G.A., Sections 45-18-30 through 45-18-36, and Section 457 of the IRC. The 457 Plan is available to employees of the State of Georgia and county health departments and permits such employees to defer a portion of their annual salary until future years. Employee contributions and earnings thereon are 100% vested at all times. \n \nEffective July 1, 1998, the Master Trust was formed for the State of Georgia Deferred Compensation Program to serve as the funding medium for the 457 Plan. All assets of the 457 Plan are held in trust for the exclusive benefit of the participants and their beneficiaries. The assets of the 457 Plan and the 401(k) Plan are commingled in the Master Trust with the respective trusts owning units of the Master Trust. Participant contributions are invested according to the participant's investment election. If the participant does not make an election, investments are automatically defaulted to a Lifecycle Fund based on the participant's date of birth. \n \nEffective July 1, 2005 (HB275), ERS became the trustee of the 457 Plan. Alight Solutions and JPMorgan Chase hold, administer, and invest the assets of the Master Trust. \n \nParticipation As of June 30, 2019, the 457 Plan had 12,567 participants with a balance. A total of 298 employers transmitted contributions to the plan during 2019. \n \nDistributions The balance in the employee's account in the 457 Plan is not available to the employee until age 70.5, termination, retirement, death, or unforeseeable emergency, as defined in the 457 Plan. Upon the death of a participant, his or her beneficiary shall be entitled to the vested value of his or her accounts. Distributions are made in installments or in a lump sum. \n(l) SBF was established under O.C.G.A. 47-2-128(c)(3) within the ERS trust solely for maintaining group term life insurance coverage for members of the plan. All assets of SBF are therefore limited to the payment of benefits and expenses for such coverage and cannot be used to pay pension benefits of ERS. SBF is shown on the financial statements separately as an agency fund to reflect ERS's custodial responsibility and to account for assets held for distribution to SEAD-Active and SEAD-OPEB. SBF may only be used to pay benefits or expenses of SEAD-OPEB or SEAD-Active with authorization by the ERS Board. An actuarial valuation is not prepared, as there are no funding requirements. \n \n(m) SEAD-Active is a cost-sharing multiple-employer life insurance plan created in 2007 by the Georgia General Assembly to amend Title 47 of the O.C.G.A., relating to retirement, so as to establish a fund for the provision of term life insurance to active members of ERS, LRS, and GJRS. Effective July 1, 2009, no newly hired members of any Georgia public retirement system are eligible for term life insurance under SEAD. The SEAD-Active fund accumulates the premiums received from the aforementioned retirement systems, including interest earned on deposits and investments of such payments from active members. There were 456 employers and 1 nonemployer contributing entity participating in the plan during 2019. As of \nJune 30, 2019, there were 23,368 active plan members in SEAD-Active. \n \nEmployee contribution rates as a percentage of member's salaries were appropriated for the fiscal year ended June 30, 2019 as follows: ERS Old Plan  0.05% and ERS New Plan, LRS, and GJRS  0.02%. ERS Old Plan members were hired prior to July 1, 1982 and new plan members were hired on or after July 1, 1982, but prior to January 1, 2009. \n \n(continued) 39 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \nGeorgia law provides that employee contributions to the plan shall be in an amount established by the SEAD Board not to exceed one-half of 1% of the member's earnable compensation. There were no employer contributions required for the fiscal year ended June 30, 2019. \n \nAccording to the policy terms covering the lives of members, insurance coverage is provided on a monthly, renewable term basis, and no return premiums or cash value are earned. The net position represents the excess accumulation of investment income and premiums over benefit payments and expenses, and is held as a reserve for payment of death benefits under existing policies. \n \nThe amount of insurance coverage is equal to 18 times monthly earnable compensation frozen at age 60. For members with no creditable service prior to April 1, 1964, the amount decreases from age 60 by a half of 1% per month until age 65, at which point the member will be covered for 70% of the age 60 coverage. Life insurance proceeds are paid in lump sum to the beneficiary upon death of the member. \n \nAdministrative costs for the plan are determined based on the plan's share of overhead costs to accumulate and invest funds, actuarial services, and to process benefit payments to beneficiaries. Administrative fees are financed from the assets of the plan. \n(3) Significant Accounting Policies and System Asset Matters \n \n(a) Basis of Accounting The System's financial statements are prepared in accordance with U.S. generally accepted accounting principles as applicable to governmental organizations. The System follows the reporting requirements established by GASB. \nFiduciary funds include the defined benefit plans and defined contribution plans, which are accounted for on the flow of economic resources measurement focus and the accrual basis of accounting. Contributions to the defined benefit pension plans and OPEB plan are recognized in the period in which the contributions are due. Benefits and refunds are recognized when due and payable in accordance with the terms of each plan. Contributions to the deferred compensation plans are recognized as received. The SBF is an agency fund and is custodial in nature and does not measure the results of operations. Assets and liabilities are recorded using the accrual basis of accounting. The proprietary fund comprises the SEAD-Active plan. This fund is accounted for on the flow of economic resources measurement focus and uses the accrual basis of accounting. The principal operating revenues are derived from insurance premiums. Operating expenses include the cost of claims and related expenses. \n \n(continued) 40 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \n(b) Reporting Entity The System is a component unit of the State of Georgia; however, it is accountable for its own fiscal matters and presentation of its separate financial statements. The System has considered potential component units under GASB Statements No. 80, Blending Requirements for Certain Component Units, No. 61, The Financial Reporting Entity's Omnibus  An Amendment of GASB Statement No. 14 and No. 34, and No. 39, Determining Whether Certain Organizations are Component Units, and determined there were no component units of the System. \n \n(c) Cash and Cash Equivalents Cash and cash equivalents, reported at cost, include cash on deposit at banks and cash on deposit with the investment custodian. \n \n(d) Investments \nInvestments are reported at fair value, and in some cases, net asset value (NAV) as a practical expedient to fair value. Equity securities traded on a national or international exchange are valued at the last reported sales price. Investments in private investment companies are valued utilizing the NAVs provided by the underlying private investment companies as a practical expedient. The Pooled Investment Fund (the Fund) applies the practical expedient to its investments in private investment companies on an investment by investment basis, consistent with the Fund's entire position in a particular investment, unless it is probable that the Fund will sell a portion of an investment at an amount different from the NAV of the investment. Private equity fair value is measured using the valuation of the underlying companies as reported by the general partner. These investments, in the form of limited partnerships, reflect values and related performance on a quarter-lag basis due to the nature of the investments and the time it takes to value them. The estimated fair value of investments without readily determinable market values could differ significantly if a ready market for these assets existed. Fixed income securities are valued based primarily on quoted market prices provided by independent pricing sources. Global foreign exchange holdings are translated using a third-party vendor. Investment income is recognized as earned by the System. There are no investments in, loans to, or leases with parties related to the System. \n \nThe System utilizes various investment instruments. Investment securities, in general, are exposed to various risks, such as interest rate, credit, foreign currency, and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the financial statements. \n \nThe System's policy with regard to the allocation of invested assets is established on a cost basis in compliance with Georgia statute. Plan assets are managed on a total return basis with a long-term objective of achieving and maintaining a fully funded status for the benefits provided through the pension and OPEB plans. The following was the System's adopted asset allocation policy as of June 30, 2019: \n \nAsset class Fixed income Equities Alternative investments \nTotal \n \nTarget allocation 25%-45% 55%-75% 0%-5% 100% \n \nApproximately 20.8% of the investments held in trust for pension and OPEB benefits are invested in debt securities of the U.S. government. The System has no investments in any one organization, other than those issued by the U.S. government and its instrumentalities, that represent 5% or more of the System's net position restricted for pensions and OPEB. \n \n(continued) 41 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \nFor the year ended June 30, 2019, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was (1.8)%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. \n \n(e) Capital Assets \nCapital assets, including software development costs, are stated at cost less accumulated depreciation and reside in ERS. The capitalization thresholds are $100,000 for buildings and building improvements and $5,000 for equipment and vehicles. Depreciation on capital assets is computed using the straight-line method over estimated useful lives of 3 to 40 years. Depreciation expense is included in administrative expenses. Maintenance and repairs are charged to administrative expenses when incurred. When assets are retired or otherwise disposed of, the costs and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in the combining statement of changes in fiduciary net position in the period of disposal. \n \n(f) Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of net position and changes therein. Actual results could differ from those estimates. \n \n(g) New Accounting Pronouncements \n \nPronouncements effective for the 2019 financial statements: \n \nIn November 2016, the GASB issued Statement No. 83, Certain Asset Retirement Obligations, effective for fiscal years beginning after June 15, 2018. This Statement addresses accounting and financial reporting for certain asset retirement obligations (AROs). An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset. There are no applicable reporting requirements for the system related to this statement. \n \nIn April 2018, the GASB issued Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowing and Direct Placements effective for fiscal years beginning after June 15, 2018. The primary objective of this statement is to improve the information that is disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements. It also clarifies which liabilities governments should include when disclosing information related to debt. There are no applicable reporting requirements for the system related to this statement. \nPronouncements issued, but not yet effective: \n \nIn January 2017, the GASB issued Statement No. 84, Fiduciary Activities, effective for fiscal years beginning after December 15, 2018. The objective of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. The System is in the process of evaluating the impact of this pronouncement on its financial statements. \nIn June 2017, the GASB issued Statement No. 87, Leases, effective for fiscal years beginning after December 15, 2019. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. The System is in the process of evaluating the impact of this pronouncement on its financial statements. \n \nIn June 2018, the GASB issued Statement No. 89, Accounting for Interest Costs Incurred before the End of a Construction Period, effective for fiscal years beginning after December 15, 2019, which establishes guidance designed to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period. It also simplifies accounting for interest costs incurred before the \n \n(continued) 42 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \nend of a construction period. The System does not anticipate this pronouncement will impact its financial statements and related reporting. \n \nIn August 2018, the GASB issued Statement No. 90, Majority Equity Interests-an amendment of GASB Statements No. 14 and No. 61 for fiscal years beginning after December 15, 2018. The objectives of this Statement are to improve the consistency and comparability of reporting a government's majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. The System does not anticipate this statement will impact its financial statements and related reporting. \n \nIn May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations effective for fiscal years beginning after December 15, 2020. The objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with commitments extended by issuers, arrangements associated with conduit debt obligations, and related note disclosures.The System does not anticipate this statement will impact its financial statements and related reporting. \n(4) Investment Program \n \nThe System maintains sufficient cash to meet its immediate liquidity needs. Cash not immediately needed is invested as directed by the ERS Board. All investments are held by agent custodial banks in the name of the System. State statutes and the System's investment policy authorize the System to invest in a variety of shortterm and long-term securities as follows: \n \n(a) Cash and Cash Equivalents Custodial credit risk is the risk that in the event a depository institution or counterparty fails, the System would not be able to recover the value of its deposits or investments. The System does not have a formal policy relating to custodial credit risk. The carrying amount of the System's deposits totaled $439.0 million at June 30, 2019, with actual bank balances of $341.9 million. The System's bank balances of $313.6 million are fully insured through the Federal Deposit Insurance Corporation, an independent agency of the U.S. government. The remaining bank deposits of $28.3 million are uninsured and uncollateralized. The System's noncash investments are held in the System's name and are not exposed to custodial credit risk. \nShort-term securities authorized but not currently used are as follows: \n 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. \n U.S. Treasury obligations \n Commercial paper, with a maturity of 180 days or less. Commercial paper is an unsecured promissory note issued primarily by corporations for a specific amount and maturing on a specific day. The System considers for investment only commercial paper of the highest quality, rated P-l and/or A-l by national credit rating agencies. \n Master notes, an overnight security administered by a custodian bank and an obligation of a corporation whose commercial paper is rated P-l and/or A-l by national credit rating agencies. \nInvestments in commercial paper or master notes are limited to no more than $500 million in any one name. \n \n(continued) 43 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \n(b) Investments Fixed income investments, managed by the Division of Investment Services (the Division), are authorized in the following instruments: \n U.S. and foreign government obligations. At June 30, 2019, the System held U.S. Treasury bonds of approximately $3.8 billion. \n \n U.S. and foreign corporate obligations. At June 30, 2019, the System held U.S. corporate bonds of approximately $1.1 billion and international corporate bonds of approximately $95.1 million. \n \n Obligations unconditionally guaranteed by agencies of the U.S. government. At June 30, 2019, the System did not hold agency bonds. \n \n Private placements are authorized under the same general restrictions applicable to corporate bonds. At June 30, 2019, the System did not hold private placements. \n \nMortgage investments are authorized to the extent that they are secured by first mortgages on improved real property located in the state of Georgia. \n \nEquity securities are also authorized (in statute) for investment as a complement to the System's fixed income portfolio and as a long-term inflation hedge. By statute, no more than 75% of the total invested assets on a historical cost basis may be placed in equities. Equity holdings in any one corporation may not exceed 5% of the outstanding equity of the issuing corporation. The equity portfolio is managed by the Division, in conjunction with independent advisers. Buy/sell decisions are based on securities meeting rating criteria established by the ERS Board, in-house research considering such matters as yield, growth, and sales statistics, and analysis of independent market research. Equity trades are approved and executed by the Division's staff. Common stocks eligible for investment are approved by the Investment Committee of the ERS Board before being placed on an approved list. \nEquity investments are authorized in the following instruments: \n Domestic equities are those securities considered by O.C.G.A. to be domiciled in the United States. At June 30, 2019, the System held domestic equities of approximately $8.3 billion, excluding the 401(k) and 457 plans. \n International equities, including American Depository Receipts (ADR), are not considered by the O.C.G.A. to be domiciled in the United States. At June 30, 2019, the System held international equities of approximately $1.2 billion and ADRs of approximately $1.6 billion, excluding the 401(k) and 457 plans. \n Alternative investments are authorized (in statute) to provide portfolio diversification and to enhance the risk-adjusted rate of return for the retirement fund that benefits the members of the System. By statute, the allocation to alternative investments shall not, in the aggregate, exceed 5% of the System's plan assets at any time. Further, in any calendar year, new commitments to alternative investments shall not, in the aggregate exceed 1.0% of the System's plan assets until the first occurrence that 4.5% of the assets have been invested, at which time there shall be no limit on the percentage of commitments that may be made in any calendar year, subject to compliance with other provisions of the statute. At June 30, 2019, the System held private equity investments of approximately $335.3 million. \nThe Master Trust invests in various mutual funds, common collective trust funds, and separate accounts, as selected by participants. Each participant is allowed to select and invest contributions into investment options that own one or more commingled funds, as authorized by the ERS Board. Participants may also contribute to a self-directed brokerage account that offers investments in various mutual funds and equities. At June 30, 2019, the deferred compensation plans held commingled funds of approximately $1.8 billion, mutual funds of approximately $8.1 million, domestic equities of approximately $16.0 million, and international equities of approximately $1.8 million. \n \n(continued) 44 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \nSubstantially all of the investments of ERS, PSERS, LRS, GJRS, GMPF, SEAD-OPEB, SBF, and SEADActive are pooled into one common investment fund. Units in the pooled common investment fund are allocated to the respective plans based upon the cost of assets contributed, and additional units are allocated to the participating plans based on the market value of the pooled common investment fund at the date of contribution. Net income of the pooled common investment fund is allocated monthly to the participating plans, based upon the number of units outstanding during the month. \n \nThe units and fair value of each plan's equity in the pooled common investment fund at June 30, 2019, were as follows (dollars in thousands): \n \nEmployees' Retirement System Public School Employees Retirement System Legislative Retirement System Georgia Judicial Retirement System Georgia Military Pension Fund State Employees' Assurance Department - OPEB Survivors Benefit Fund \nTotal defined benefit plans \nState Employees' Assurance Department - Active \nTotal in pooled investment funds \n \nFair value $ 13,567,302 \n942,101 34,559 \n478,823 26,404 \n1,233,750 158,658 \n16,441,597 \n305,795 \n$ 16,747,392 \n \nUnits 2,566,020 \n178,182 6,536 \n90,561 4,994 \n233,342 30,007 \n3,109,642 \n57,836 \n3,167,478 \n \nFair Value Measurements. The System categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the inputs used in valuation and gives the highest priority to unadjusted quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the hierarchy is based on whether the significant inputs into the valuations are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest level, Level 1, is given to unadjusted quoted prices in active markets and the lowest level, Level 3, to unobservable inputs. \nThe three levels of the fair value hierarchy are as follows: \nLevel 1  Valuations based on unadjusted quoted prices for identical instruments in active markets that the System has the ability to access. \nLevel 2  Valuations based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs are observable. \nLevel 3  Valuations based on inputs that are unobservable and significant to the overall fair value measurement. \nThe System also has investments held through limited partnerships for which fair value is estimated using the NAV reported by the general partner as a practical expedient to fair value. Such investments have not been categorized within the fair value hierarchy. \nIn instances where inputs used to measure fair value fall into different levels in the fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the \n(continued) 45 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \nvaluation. The System's assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each investment. The table below shows the fair value leveling of the System's investments (in thousands): \n \nInvestments by fair value level \nEquities: Domestic International \nObligations: Domestic: U.S. treasuries Corporate bonds International: Corporate bonds \nMutual funds Commingled funds \nTotal investments by fair value level Investments measured at NAV* Private equity funds \nTotal investments \n \nFair value measures using \n \nQuoted prices in \nactive markets for identical assets \n(Level 1) \n \nSignificant other \nobservable inputs \n(Level 2) \n \nSignificant unobservable \ninputs \n(Level 3) \n \nTotal \n \n$ 8,350,863 2,760,042 \n \n-- 26,527 \n \n-- \n \n8,350,863 \n \n-- \n \n2,786,569 \n \n3,784,262 -- \n-- 8,114 79,080 \n$ 14,982,361 \n \n-- 1,104,643 \n95,134 -- \n1,682,123 \n2,908,427 \n \n-- \n \n3,784,262 \n \n-- \n \n1,104,643 \n \n-- \n \n95,134 \n \n-- \n \n8,114 \n \n-- \n \n1,761,203 \n \n-- 17,890,788 \n335,306 $ 18,226,094 \n \n*Certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the combining statement of fiduciary net position. \nEquity securities classified in Level 1 are valued using prices quoted in active markets for those securities. Equity securities in Level 2 are valued using prices quoted for similar instruments in active markets. Equity securities classified in Level 3, if any, are valued using third-party valuations not currently observable in the market. \nDebt securities classified in Level 1 are valued using prices quoted in active markets. Debt securities classified in Level 2 are valued using either a bid evaluation or a matrix pricing technique. Bid evaluations may include market quotations, yields, maturities, call features, and ratings. Matrix pricing is used to value securities based on the securities' relationship to benchmark quoted prices. These securities have nonproprietary information that was readily available to market participants, from multiple independent sources, which are known to be actively involved in the market. \nMutual funds and commingled funds classified in Level 1 are valued using prices quoted in active markets for those investment types. Commingled funds classified in Level 2 are valued using observable underlying inputs that are market corroborated. \n \n(continued) 46 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \nUnfunded commitments, redemption frequency, and redemption notice period relative to the System's alternative investments for which the System utilized NAV or its equivalent relative to the determination of fair value at June 30, 2019, are as follows (in thousands): \n \nPrivate equity funds \n \nInvestments measured at \nNAV \n$335,306 \n \nUnfunded commitments \n270,957 \n \nRedemption frequency (if \ncurrently eligible) \nNot Eligible \n \nRedemption notice period \nN/A \n \nInvestments in privately held limited partnerships are valued using the NAV provided by the general partner as of March 31 of each fiscal year, adjusted by the System for cash flows through June 30. The quarterly values of the partnership investments provided from the general partner are reviewed by the System to determine if any adjustments are necessary. The types of partnership strategies held include growth equity, leveraged buyouts, and mezzanine debt. Two of the 21 partnerships held are secondary investments and are in or nearing the wind up phase of the fund. The remaining investments typically have an approximate life of 810 years. These investments are considered illiquid since the nature of these private investments prohibits redemption with the fund; instead, distributions are received from the general partner through liquidation of the underlying assets of the fund. The System currently has no plans to sell any of the investments prior to their liquidation resulting in these assets being carried at the NAV estimated by the general partner and adjusted for second quarter cash flows by the System. \n \nCredit Risk: Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations to the System. O.C.G.A. 47-20-84 limits investments to investment grade securities. It is the System's investment policy to require that the bond portfolio be of high quality and chosen with respect to maturity ranges, coupon levels, refunding characteristics, and marketability. The System's policy is to require that new purchases of bonds be restricted to high-grade bonds rated no lower than \"A\" by any nationally recognized statistical rating organization. If a bond is subsequently downgraded to a rating below \"A,\" it is placed on a watch list. The System holds two bonds that were downgraded to a rating below \"A.\" Obligations of the U.S. government or obligations explicitly guaranteed by the U.S. government are not considered to have credit risk and do not require disclosure of credit quality. The quality ratings of investments in fixed income securities as described by Standard \u0026 Poor's and by Moody's Investors Service, which are nationally recognized statistical rating organizations, at June 30, 2019, are shown in the table on the following page (in thousands). \n \n(continued) 47 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \nQuality Ratings of Fixed Income Investments Held at June 30, 2019 \n \nInvestment type Domestic obligations: \nU.S. treasuries Corporates \nTotal domestic corporates International obligations: \nCorporates Total international corporates Total fixed income investments \n \nStandard and Poor's/ June 30, 2019 \n \nMoody's quality rating \n \nfair value \n \nAAA/Aaa AA/Aaa AA/Aa \nAA/A A/A BBB/Baa \n \n$ \n \n3,784,262 \n \n170,770 96,266 58,207 95,599 \n448,956 234,845 \n \n1,104,643 \n \nA/A \n \n95,134 \n \n95,134 \n \n$ \n \n4,984,039 \n \nMutual funds, commingled funds, and various equities of the deferred compensation plans are not considered to have credit risk and do not require disclosure of credit risk rating. \nConcentration of Credit Risk: Concentration of credit risk is the risk of loss that may be attributed to the magnitude of a government's investment in a single issue. At June 30, 2019, the System did not have debt or equity investments in any one organization, other than those issued or guaranteed by the U.S. government or its agencies, which represented greater than 5% of total investments. \nInterest Rate Risk: Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. While the System has no formal interest rate risk policy, active management of the bond portfolio incorporates interest rate risk to generate improved returns. This risk is managed within the portfolio using the effective duration method. This method is widely used in the management of fixed income portfolios and quantifies to a much greater degree the sensitivity to interest rate changes when analyzing a bond portfolio with call options, prepayment provisions, and any other cash flows. Effective duration makes assumptions regarding the most likely timing and amounts of variable cash flows and is best utilized to gauge the effect of a change in interest rates on the fair value of a portfolio. It is believed that the reporting of effective duration found in the table on the following page quantifies to the fullest extent possible the interest rate risk of the System's fixed income assets (in thousands). \n \n(continued) 48 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \nEffective Duration of Fixed Income Assets \n \nFixed income type Domestic obligations: \nU.S. treasuries Corporates \nInternational obligations: Corporates Total \n \nFair value June 30, 2019 \n \nPercent of all fixed \nincome assets \n \nEffective duration (years) \n \n$ 3,784,262 \n \n75.9% \n \n5.7 \n \n1,104,643 \n \n22.2 \n \n3.9 \n \n95,134 \n \n1.9 \n \n0.5 \n \n$ 4,984,039 \n \n100% \n \n5.2 \n \nForeign Currency Risk: Foreign currency risk is the risk that changes in exchange rates will adversely impact the fair value of an investment. The System's currency risk exposures, or exchange rate risks, primarily reside within the System's international equity investment holdings. The System's asset allocation and investment policies allow for active and passive investments in international securities. The System's Board-adopted foreign exchange risk management policy is to minimize risk and protect the investments from negative impact by hedging foreign currency exposures with foreign exchange instruments when market conditions and circumstances are deemed appropriate. Foreign exchange instruments are used to protect the value of noncash investments from currency movements. The System's foreign exchange risk management policy does not quantify limitations on foreign currency-denominated investments. As of June 30, 2019, the System's exposure to foreign currency risk in U.S. Dollars, excluding the 401(k) and 457 plans, is highlighted in the table on the following page (in thousands). \n \n(continued) 49 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \nInternational Investment Securities at Fair Value as of June 30, 2019 \n \nCurrency \nAustralian dollar Brazilian real British pound Canadian dollar Chilean peso Chinese renminbi Colombian peso Czech krone Danish krone Euro Hong Kong dollar Indian rupee Indonesian rupiah Israeli shekel Japanese yen Malaysian ringgit Mexican peso New Taiwan dollar Norwegian krone Philippine peso Polish zloty Qatari riyal Singapore dollar South African rand South Korean won Swedish krona Swiss franc Thailand baht UAE Dirham \n \nCash/cash equivalents \n \n$ \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n19 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n47 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \nEquities \n42,445 26,253 103,475 34,070 \n3,312 8,000 2,037 1,982 18,818 287,497 95,446 69,506 6,098 2,288 194,315 14,066 9,801 35,607 2,074 4,619 2,997 3,771 22,411 32,631 62,573 31,653 31,739 26,527 4,006 \n \nFixed income \n-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- \n \nTotal holdings subject to foreign currency risk \n \n66 \n \n1,180,017 \n \n-- \n \nInvestment securities payable in U.S. dollars \n \n-- \n \n1,604,785 \n \n95,134 \n \nTotal international investment securities - at fair value \n \n$ \n \n66 \n \n2,784,802 \n \n95,134 \n \nTotal \n42,445 26,253 103,475 34,070 \n3,312 8,019 2,037 1,982 18,818 287,497 95,446 69,553 6,098 2,288 194,315 14,066 9,801 35,607 2,074 4,619 2,997 3,771 22,411 32,631 62,573 31,653 31,739 26,527 4,006 \n1,180,083 \n1,699,919 \n2,880,002 \n \n(5) Securities Lending Program \nState statutes and ERS Board policies permit the System to lend its securities to broker/dealers with a simultaneous agreement to return the collateral for the same securities in the future. The System is presently involved in a securities lending program with major brokerage firms. The System lends equity and fixed income \n(continued) 50 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \nsecurities for varying terms and receives a fee based on the loaned securities' value. The System reports the gross loan fee income earned as investment income on the combining statement of changes in fiduciary net position. During a loan, the System continues to receive dividends and interest as the owner of the loaned securities. The brokerage firms pledge collateral securities consisting of U.S. government and agency securities, mortgage-backed securities issued by a U.S. government agency, corporate bonds, and equities. The collateral value must be equal to at least 102% to 109% of the loaned securities' value, depending on the type of collateral security. \n \nSecurities loaned totaled approximately $4.8 billion at fair value at June 30, 2019. The collateral value was equal to 104.4% of the loaned securities' value at June 30, 2019. The System's lending collateral was held in the System's name by the tri-party custodian. \nLoaned securities are included in the accompanying combining statement of fiduciary net position since the System maintains ownership. The related collateral securities are not recorded as assets on the System's combining statement of fiduciary net position, and a corresponding liability is not recorded, since the System is deemed not to have the ability to pledge or trade the collateral securities. In accordance with the criteria set forth in GASB Statement No. 28, Accounting and Financial Reporting for Securities Lending Transactions, the System is deemed not to have the ability to pledge or sell the collateral securities, since the System's lending contracts do not address whether the lender can pledge or sell the collateral securities without a borrower default, the System has not previously demonstrated that ability, and there are no indications of the System's ability to pledge or sell the collateral securities. \n(6) Capital Assets \n \nThe following is a summary of capital assets and depreciation information as of and for the year ended June 30, 2019 (dollars in thousands): \n \nCapital assets: Land Building Equipment Vehicles Computer software \nAccumulated depreciation for: Building Equipment Vehicles Computer software \nCapital assets, net \n \nBalance at June 30, 2018 \n \nAdditions \n \nDisposals \n \nBalance at June 30, 2019 \n \n$ \n \n4,350 \n \n-- \n \n2,800 \n \n-- \n \n3,407 \n \n104 \n \n-- \n \n-- \n \n14,345 \n \n-- \n \n24,902 \n \n104 \n \n-- \n \n4,350 \n \n-- \n \n2,800 \n \n-- \n \n3,511 \n \n-- \n \n-- \n \n-- \n \n14,345 \n \n-- \n \n25,006 \n \n(980) (2,839) \n-- (14,345) \n \n(18,164) \n \n$ \n \n6,738 \n \n(70) (220) \n-- -- \n(290) \n(186) \n \n-- \n \n(1,050) \n \n-- \n \n(3,059) \n \n-- \n \n-- \n \n-- \n \n(14,345) \n \n-- \n \n(18,454) \n \n-- \n \n6,552 \n \n(continued) 51 \n \n Notes to Financial Statements \nJune 30, 2019 \n(7) Commitments \n \nFinancial Section \n \nAs of June 30, 2019, the System had committed to fund certain private equity partnerships for a total capital commitment of approximately $577.8 million. Of this amount, approximately $271.0 million remained unfunded and is not recorded on the System's combining statement of fiduciary net position. \n(8) Net Pension Liability of Employers and Nonemployers - ERS \n \nThe components of the net pension liability of the participating employers and nonemployers at June 30, 2019 were as follows (dollars in thousands): \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployers' and nonemployers' net pension liability \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \n17,744,003 13,617,472 \n4,126,531 76.74% \n \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2018, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases Investment rate of return \n \n2.75% 3.25 - 7.00%, including inflation 7.30%, net of pension plan investment expense, including inflation \n \nPostretirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward two years for both males and females for service retirements and dependent beneficiaries. The RP-2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB and set back seven years for males and set forward three years for females was used for death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. There is a margin for future mortality improvement in the tables used by the plan. \n \nThe actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the investment rate of return. Subsequent to the June 30, 2017 measurement date, the ERS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the ERS Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. \n \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the table on the following page: \n \n(continued) 52 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \nAsset class Fixed income Domestic large equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n* Rates shown are net of inflation \n \nTarget allocation 30.00% 46.20 1.30 12.40 5.10 5.00 \n100.00% \n \nLong-term expected real rate of return* \n(0.10)% 8.90 13.20 8.90 10.90 12.00 \n \nDiscount rate: The discount rate used to measure the total pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \nSensitivity of the net pension liability to changes in the discount rate: The following presents the net pension liability, calculated using the discount rate of 7.30%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.30%) or 1-percentage-point higher (8.30%) than the current rate (dollars in thousands): \n \nEmployers' and nonemployers' net pension liability \n \n1% Decrease (6.30%) \n$5,864,180 \n \nCurrent discount \nrate (7.30%) \n4,126,531 \n \n1% Increase (8.30%) \n2,645,214 \n \nActuarial valuation date: June 30, 2018 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2019 using standard roll-forward techniques. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n(9) Net Pension Liability of Employers and Nonemployers  PSERS \nThe components of the net pension liability of the participating employers and nonemployers at June 30, 2019 were as follows (dollars in thousands): \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployers' and nonemployers' net pension liability \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \n1,107,495 941,587 165,908 85.02% \n \n(continued) 53 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2018, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases Investment rate of return Cost-of-living adjustment \n \n2.75% n/a 7.30%, net of pension plan investment expense, including inflation 1.5% semi-annually \n \nPostretirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward three years for males and two years for females) for the period after service retirement and for dependent beneficiaries. The RP-2000 Disabled Mortality projected to 2025 with projection scale BB (set forward five years for both males and females) was used for death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. There is a margin for future mortality improvement in the tables used by the plan. \n \nThe actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the investment rate of return. Subsequent to the June 30, 2017 measurement date, the PSERS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the PSERS Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. \n \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class Fixed income Domestic large equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n \nTarget allocation 30.00% 46.20 1.30 12.40 5.10 5.00 \n100.00% \n \nLong-term expected real rate of return* \n(0.10)% 8.90 13.20 8.90 10.90 12.00 \n \n* Rates shown are net of inflation. \nDiscount rate: The discount rate used to measure the total pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \n(continued) 54 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \nSensitivity of the net pension liability to changes in the discount rate: The following presents the net pension liability, calculated using the discount rate of 7.30%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.30%) or 1-percentage-point higher (8.30%) than the current rate (dollars in thousands): \n \nEmployers' and nonemployers' net pension liability \n \n1% Decrease (6.30%) \n$287,322 \n \nCurrent discount \nrate (7.30%) \n165,908 \n \n1% Increase (8.30%) \n63,677 \n \nActuarial valuation date: June 30, 2018 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2019 using standard roll-forward techniques for the actual total pension liability before and after any benefit changes, reflecting the increase in the monthly benefit accrual rate from $15.00 to $15.25 per year of creditable service. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n(10) Net Pension Liability of Employer  LRS \nThe components of the net pension liability (asset) of the participating employer at June 30, 2019 were as follows (dollars in thousands): \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployer's net pension liability (asset) \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \n26,166 34,540 (8,374) 132.00% \n \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2018, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases Investment rate of return Cost-of-living adjustment \n \n2.75% n/a 7.30%, net of pension plan investment expense, including inflation 1.5% semi-annually \n \nPostretirement mortality rates were based on the RP-2000 Combined Mortality Table projected to 2025 with projection scale BB (set forward two years for both males and females) for the period after service retirement. The RP-2000 Employee Mortality table projected to 2025 using projection scale BB was used for deaths in active service. \nThe actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the investment rate of return. Subsequent to the June 30, 2017 measurement date, the ERS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the ERS Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. \n \n(continued) 55 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class Fixed income Domestic large equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n* Rates shown are net of inflation. \n \nTarget allocation 30.00% 46.20 1.30 12.40 5.10 5.00 \n100.00% \n \nLong-term expected real rate of return* \n(0.10)% 8.90 13.20 8.90 10.90 12.00 \n \nDiscount rate: The discount rate used to measure the total pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \nSensitivity of the net pension liability to changes in the discount rate: The following table presents the net pension liability (asset), calculated using the discount rate of 7.30%, as well as what the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.30%) or 1percentage-point higher (8.30%) than the current rate (dollars in thousands): \n \nEmployers' and nonemployers' net pension liability (asset) \n \n1% Decrease (6.30%) \n$(5,918) \n \nCurrent discount \nrate (7.30%) \n(8,374) \n \n1% Increase (8.30%) \n(10,451) \n \nActuarial valuation date: June 30, 2018 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2019 using standard roll-forward techniques. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n \n(continued) 56 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \n(11) Net Pension Liability of Employers and Nonemployers  GJRS \n \nThe components of the net pension liability (asset) of the participating employers and nonemployers at June 30, 2019 were as follows (dollars in thousands): \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployer's net pension liability (asset) \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \n440,041 479,372 (39,331) \n108.94% \n \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2018, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases Investment rate of return \n \n2.75% 4.50%, including inflation 7.30%, net of pension plan investment expense, including inflation \n \nMortality rates were based on the RP-2000 Combined Mortality Table projected to 2025 with projection scale BB and set forward two years for both males and females for the period after retirement and for dependent beneficiaries. For the period after disability retirement, the RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB and set back seven years for males and set forward three years for females is used. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \n \nThe actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the investment rate of return. Subsequent to the June 30, 2017 measurement date, the GJRS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the GJRS Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. \n \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class Fixed income Domestic large equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n* Rates shown are net of inflation. \n \nTarget allocation 30.00% 46.20 1.30 12.40 5.10 5.00 \n100.00% \n \nLong-term expected real rate of return* (0.10)% 8.90 13.20 8.90 10.90 12.00 \n \n(continued) 57 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \nDiscount rate: The discount rate used to measure the total pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \nSensitivity of the net pension liability to changes in the discount rate: The following table presents the net pension liability (asset), calculated using the discount rate of 7.30%, as well as what the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.30%) or 1percentage-point higher (8.30%) than the current rate (dollars in thousands): \n \nEmployers' and nonemployers' net pension liability (asset) \n \n1% Decrease (6.30%) \n$1,681 \n \nCurrent discount \nrate (7.30%) \n(39,331) \n \n1% Increase (8.30%) \n(75,029) \n \nActuarial valuation date: June 30, 2018 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2019 using standard roll-forward techniques for the actual total pension liability both for and after reflecting the 2% cost-of-living adjustment granted to certain retired members and beneficiaries effective July 1, 2019. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n(12) Net Pension Liability of Employer  GMPF \nThe components of the net pension liability of the participating employer at June 30, 2019 were as follows (dollars in thousands): \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployer's net pension liability \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \n45,639 26,417 19,222 \n57.88% \n \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2018, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases Investment rate of return \n \n2.75% n/a 7.30%, net of pension plan investment expense, including inflation \n \nPostretirement mortality rates were based on the RP-2000 Combined Mortality Table projected to 2025 with projection scale BB (set forward two years for both males and females) for the period after service retirement. The RP-2000 Employee Mortality Table projected to 2025 using projection scale BB was used for deaths in active service. \n \n(continued) 58 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \nThe actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the investment rate of return. Subsequent to the June 30, 2017 measurement date, the ERS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the ERS Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the \nJune 30, 2018 measurement date. \n \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class Fixed income Domestic large equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n* Rates shown are net of inflation. \n \nTarget allocation 30.00% 46.20 1.30 12.40 5.10 5.00 \n100.00% \n \nLong-term expected real rate of return* (0.10)% 8.90 13.20 8.90 10.90 12.00 \n \nDiscount rate: The discount rate used to measure the total pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \nSensitivity of the net pension liability to changes in the discount rate: The following table presents the net pension liability (asset), calculated using the discount rate of 7.30%, as well as what the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.30%) or 1percentage-point higher (8.30%) than the current rate (dollars in thousands): \n \nEmployers' net pension liability \n \n1% Decrease (6.30%) \n$25,666 \n \nCurrent discount \nrate (7.30%) \n19,222 \n \n1% Increase (8.30%) \n13,980 \n \nActuarial valuation date: June 30, 2018 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2019 using standard roll-forward techniques. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n \n(continued) 59 \n \n Notes to Financial Statements \nJune 30, 2019 \n(13) Net OPEB Liability of Employers - SEAD-OPEB \n \nFinancial Section \n \nThe components of the net OPEB liability (asset) of the participating employers at June 30, 2019 were as follows (dollars in thousands): \n \nTotal OPEB liability Plan fiduciary net position \n \n$ \n \n951,091 \n \n1,233,856 \n \nEmployers' net OPEB liability (asset) \n \n$ \n \n(282,765) \n \nPlan fiduciary net position as a percentage of the total OPEB liability \n \n129.73% \n \nActuarial assumptions: The total OPEB liability was determined by an actuarial valuation as of June 30, 2018, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases: \nERS GJRS LRS Investment rate of return Healthcare cost trend rate \n \n2.75% \n3.25% - 7.00% 4.50% n/a 7.30%, net of OPEB plan investment expense, including inflation n/a \n \nPostretirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward two years for both males and females for service retirements and dependent beneficiaries. There is a margin for future mortality improvement in the tables used by the plan. \n \nThe actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the investment rate of return. Subsequent to the June 30, 2017 measurement date, the SEAD Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the SEAD Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. \n \nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class Fixed income Domestic large equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n* Rates shown are net of inflation. \n \nTarget allocation 30.00% 46.20 1.30 12.40 5.10 5.00 \n100.00% \n \nLong-term expected real rate of return* \n(0.10)% 8.90 13.20 8.90 10.90 12.00 \n \n(continued) 60 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \nDiscount rate: The discount rate used to measure the total OPEB liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. \n \nSensitivity of the net OPEB liability to changes in the discount rate: The following table presents the net OPEB liability (asset), calculated using the discount rate of 7.30%, as well as what the net OPEB liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.30%) or 1-percentage-point higher (8.30%) than the current rate (dollars in thousands): \n \nEmployers' net OPEB liability (asset) \n \n1% Decrease (6.30%) \n$(156,471) \n \nCurrent discount \nrate (7.30%) \n(282,765) \n \n1% Increase (8.30%) \n(386,551) \n \nActuarial valuation date: June 30, 2018 is the actuarial valuation date upon which the total OPEB liability is based. An expected total OPEB liability is determined as of June 30, 2019 using standard roll-forward techniques. The rollforward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n(14) System Employees' Other Postemployment Benefits (OPEB) \nCertain of the System's employees are members of the State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund and the Georgia State Employees Postretirement Benefit Fund. The notes to the financial statements that follow and required supplementary information on pages 79 and 80 are presented from the perspective of the System as an employer. \nGeneral Information about the State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEAD-OPEB) \nPlan description: SEAD-OPEB was created in 2007 by the Georgia General Assembly to amend Title 47 of the O.C.G.A., relating to retirement, so as to establish a fund for the provision of term life insurance to retired and vested inactive members of ERS, LRS, and GJRS. The plan is a cost-sharing multiple-employer defined benefit other postemployment benefit plan as defined in GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than OPEB Plans. The SEAD-OPEB trust fund accumulates the premiums received from the aforementioned retirement plans, including interest earned on deposits and investments of such payments. \nBenefits provided: The amount of insurance for a retiree with creditable service prior to April 1, 1964 is the full amount of insurance in effect on the date of retirement. The amount of insurance for a service retiree with no creditable service prior to April 1, 1964 is 70% of the amount of insurance in effect at age 60 or at termination, if earlier. Life insurance proceeds are paid in a lump sum to the beneficiary upon death of the retiree. \nContributions: Georgia law provides that employee contributions to the plan shall be in an amount established by the SEAD Board not to exceed one-half of 1% of the member's earnable compensation. There were no employer contributions required for the fiscal year ended June 30, 2019. \n \n(continued) 61 \n \n Notes to Financial Statements \nJune 30, 2019 \nOPEB Liabilities and OPEB Expense related to SEAD-OPEB \n \nFinancial Section \n \nAt June 30, 2019, the System reported an asset of $541.5 thousand for its proportionate share of the net OPEB asset. The net OPEB asset was measured as of June 30, 2018. The total OPEB asset used to calculate the net OPEB asset was based on an actuarial valuation as of June 30, 2017. An expected total OPEB asset as of June 30, 2018 was determined using standard roll-forward techniques. The System's proportionate share of the net OPEB asset was based on actual member salaries reported to the SEAD-OPEB plan during the fiscal year ended June 30, 2018. At June 30, 2018, the employer's proportionate share was 0.200064%, which was an increase of 0.007200% from its proportionate share measured as of June 30, 2017. For the year ended June 30, 2019, the employer recognized a reduction of OPEB expense of $53.0 thousand. \n \nActuarial assumptions: The total SEAD-OPEB asset as of June 30, 2018 was determined by an actuarial valuation as of June 30, 2017 using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increase: Investment rate of return Healthcare cost trend rate \n \n2.75% 3.25 - 7.00%, including inflation 7.30%, net of OPEB plan investment expense, including inflation n/a \n \nPostretirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward 2 years for both males and females for service retirements and dependent beneficiaries. There is a margin for future mortality improvement in the tables used by the plan. \n \nThe actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the investment rate of return. Subsequent to the June 30, 2017 measurement date, the SEAD Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the SEAD Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. \n \nThe long-term expected rate of return on SEAD-OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of plan investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class \nFixed income Domestic large equities Domestic mid equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n \nTarget allocation \n30.00% 37.20 \n3.40 1.40 17.80 5.20 5.00 \n100.00% \n \nLong-term expected real rate of return* \n(0.50)% 9.00 12.00 13.50 8.00 12.00 10.50 \n \n* Rates shown are net of inflation. \n \n(continued) 62 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \nDiscount rate: The discount rate used to measure the total SEAD-OPEB liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employers and State of Georgia contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the SEAD-OPEB plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on SEAD-OPEB plan investments was applied to all periods of projected benefit payments to determine the total SEAD-OPEB liability. \n \nSensitivity of the System's proportionate share of the net SEAD-OPEB liability to changes in the discount rate: The following presents the System's proportionate share of the net SEAD-OPEB liability (asset) calculated using the discount rate of 7.30%, as well as what the System's proportionate share of the net SEAD-OPEB liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower 6.30% or 1percentage-point higher 8.30% than the current rate (dollars in thousands): \n \nSystem's proportionate share of the net OPEB liability (asset) \n \n1% Decrease (6.30%) \n$(292) \n \nCurrent discount \nrate (7.30%) \n(541) \n \n1% Increase (8.30%) \n(746) \n \nSEAD-OPEB plan fiduciary net position: Detailed information about the SEAD-OPEB plan's fiduciary net position is presented in the Combining Statement of Fiduciary Net Position on page 24 and the Combining Statement of Changes in Fiduciary Net Postion on page 26. \nGeneral Information about the Georgia State Employees Postemployment Benefit Fund (State OPEB Fund) \nPlan description: The State OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for employees of State organizations (including technical colleges) and other entities authorized by law to contract with the Department of Community Health (DCH) for inclusion in the plan. \nBenefits provided: Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from ERS, LRS, GJRS, Teachers Retirement System (TRS) or PSERS. If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare-eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The State OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the State OPEB Fund is permitted. \nContributions: As established by the DCH Board of Trustees, the State OPEB Fund is substantially funded on a pay-as-you-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the State OPEB Fund from the System were $1.012 million for the year ended June 30, 2019. Active employees are not required to contribute to the State OPEB Fund. \nOPEB Liabilities and OPEB Expense related to State OPEB Fund \nAt June 30, 2019, the System reported a liability of approximately $4.7 million for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2018. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2017. An expected total OPEB liability as of June 30, 2018 was determined using standard roll-forward techniques. The System's proportionate share of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year \n \n(continued) 63 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \nended June 30, 2018. At June 30, 2018, the System's proportionate share was 0.181584%, which was a decrease of 0.004246% from its proportionate share measured as of June 30, 2017. For the year ended June 30, 2019, the System's recognized OPEB expense was $320.7 thousand. \n \nActuarial assumptions: The total OPEB liability as of June 30, 2018 was determined by an actuarial valuation as of June 30, 2017 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2018: \n \nInflation Salary increase: \nInvestment rate of return \n \n2.75% 3.25 - 7.00%, including inflation \n7.30%, compounded annually, net of OPEB plan investment expense, including inflation \n \nHealthcare trend rate: Pre-Medicare Eligible Medicare Eligible \nUltimate trend rate: Pre-Medicare Eligible Medicare Eligible \nYear of Ultimate trend rate Pre-Medicare Eligible \nMedicare Eligible \n \n7.50% 5.50% \n4.75% 4.75% \n2028 2022 \n \nMortality rates were based on the RP-2000 Combined Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale BB. The RP-2000 Combined Mortality Table projected to 2025 with projection scale BB and set forward 2 years or both males and females is used for the period after service retirement and for dependent beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB and set back 7 years for males and set forward 3 years for females is used for the period after disability retirement. \n \nThe actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2014. \n \nProjection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of shortterm volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation. \n \nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the table on the following page: \n \n(continued) 64 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \nAsset class \nFixed income Domestic large equities Domestic mid equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n* Rates shown are net of inflation. \n \nTarget allocation \n30.00% 37.20 \n3.40 1.40 17.80 5.20 5.00 \n100.00% \n \nLong-term expected real rate of return* \n(0.50)% 9.00 12.00 13.50 8.00 12.00 10.50 \n \nDiscount rate: The discount rate has changed since the prior measurement date from 3.60% to 5.22%. In order to measure the total OPEB liability for the State OPEB Fund, a single equivalent interest rate of 5.22% was used as the discount rate. This is comprised mainly of the yield or index rate for 20-year tax-exempt general obligation municipal bonds with an average rating of AA or higher (3.87% per the Bond Buyers Index). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2118. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be available to make OPEB payments for inactive employees through year 2040. Therefore, the calculated discount rate of 5.22% was applied to all periods of projected benefit payments to determine the total OPEB liability. \nSensitivity of the System's proportionate share of the net State OPEB liability to changes in the discount rate: The following presents the System's proportionate share of the net OPEB liability calculated using the discount rate of 5.22%, as well as what the System's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (4.22%) or 1-percentage-point higher (6.22%) than the current discount rate (dollars in thousands): \n \nSystem's proportionate share of the net OPEB liability \n \n1% Decrease (4.22%) \n$5,643 \n \nCurrent discount \nrate (5.22%) \n4,749 \n \n1% Increase (6.22%) \n4,012 \n \nSensitivity of the System's proportionate share of the net State OPEB liability to changes in the healthcare cost trend rates: The following presents the System's proportionate share of the net OPEB liability, as well as what the System's proportionate share of the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates (dollars in thousands): \n \nSystem's proportionate share of the net OPEB liability \n \n1% Decrease \n$3,918 \n \nCurrent healthcare cost trend \nrate \n4,749 \n \n1% Increase \n5,766 \n \nState OPEB plan fiduciary net position: Detailed information about the State OPEB Benefit plan's fiduciary net position is available in the Comprehensive Annual Financial Report (CAFR) which is publicly available at https:// sao.georgia.gov/comprehensive-annual-financial-reports. \n(continued) 65 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \nDeferred Outflows of Resources and Deferred Inflows of Resources for SEAD-OPEB and State OPEB Fund \nAt June 30, 2019, the System reported deferred outflows of resources and deferred inflows of resources related to SEAD-OPEB and the State OPEB Fund from the following sources (dollars in thousands): \n \nDeferred outflows of resources: Difference between expected and actual experience Change of assumptions Net different between projected and actual earnings on plan investments Change in proportion and differences between the System's contributions and proportionate share of contributions System's contributions subsequent to the measurement date \nTotal deferred outflows of resources \n \nSEAD-OPEB State OPEB \n \nplan \n \nfund \n \n$ \n \n6 \n \n-- \n \n28 \n \n-- \n \n-- \n \n110 \n \n-- \n \n-- \n \n$ \n \n34 \n \n-- 1,012 1,122 \n \nTotal \n6 28 110 \n-- 1,012 1,156 \n \nDeferred inflows of resources: Difference between expected and actual experience Change of assumptions Net different between projected and actual earnings on plan investments Change in proportion and differences between the System's contributions and proportionate share of contributions System's contributions subsequent to the measurement date \nTotal deferred inflows of resources \n \nSEAD-OPEB State OPEB \n \nplan \n \nfund \n \n$ \n \n-- \n \n-- \n \n89 \n \n12 \n \n-- \n \n$ \n \n101 \n \n373 1,722 \n-- 193 \n-- 2,288 \n \nTotal \n373 1,722 \n89 205 \n-- 2,389 \n \n(continued) 66 \n \n Notes to Financial Statements \nJune 30, 2019 \n \nFinancial Section \n \nSEAD-OPEB amounts reported as deferred outflows of resources and deferred inflows of resources related to SEAD-OPEB will be recognized in OPEB expense as follows (dollars in thousands): \n \nYear ended June 30: 2020 2021 2022 2023 \n \n($15) (18) (27) (7) -- \n \nState OPEB Fund employer contributions subsequent to the measurement date of $1.012 million are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to State OPEB Fund will be recognized in OPEB expense as follows (dollars in thousands): \n \nYear ended June 30: 2020 2021 2022 2023 \n \n($710) (710) (585) (173) \n \n67 \n \n Required Supplementary Information (UNAUDITED) \nSchedules of Employers' and Nonemployers' Contributions - Defined Benefit Plans Year ended June 30, 2019 (In thousands) \n \nFinancial Section \n \nEmployees' Retirement System \nPublic School Employees Retirement System1 \nLegislative Retirement System2 \n \nYear ended \n6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 \n6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 \n6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 \n \nActuarially determined contribution \n(a) \n \n$ \n \n263,064 \n \n261,132 \n \n273,623 \n \n358,376 \n \n428,982 \n \n517,220 \n \n595,124 \n \n624,623 \n \n650,073 \n \n649,209 \n \n5,530 7,509 15,884 24,829 27,160 28,461 28,580 26,277 29,276 30,263 \n \n-- -- -- -- -- -- -- -- -- -- \n \nContributions in relation to the actuarially determined contribution \n(b) \n263,064 261,132 274,034 358,992 429,752 518,163 595,566 625,281 652,167 649,209 \n5,530 7,509 15,884 24,829 27,160 28,461 28,580 26,277 29,276 30,263 \n75 75 76 128 45 -- -- -- -- -- \n \nContribution deficiency (excess) (a-b) \n-- -- (411) (616) (770) (943) (442) (658) (2,094) -- \n-- -- -- -- -- -- -- -- -- -- \n(75) (75) (76) (128) (45) -- -- -- -- -- \n \nCovered payroll \n(c) \n2,571,042 2,486,780 2,414,884 2,335,773 2,335,773 2,353,225 2,390,457 2,565,918 2,635,896 2,615,491 \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n \nContributions as a percentage \nof covered payroll (b/c) \n10.2% 10.5 11.3 15.4 18.4 22.0 24.9 24.4 24.7 24.8 \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n \n(continued) 68 \n \n Financial Section \n \nRequired Supplementary Information (UNAUDITED) \nSchedules of Employers' and Nonemployers' Contributions - Defined Benefit Plans Year ended June 30, 2019 (In thousands) \n \nGeorgia Judicial Retirement System \nGeorgia Military Pension Fund3 \nState Employees' Assurance Department Retired and Vested Inactive Members Trust Fund \n \nYear ended \n6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 \n6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 \n6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 \n \nActuarially determined contribution \n(a) \n \n$ \n \n2,600 \n \n1,932 \n \n2,083 \n \n2,279 \n \n2,375 \n \n4,261 \n \n7,623 \n \n6,684 \n \n6,566 \n \n5,254 \n \n1,434 1,282 1,521 1,703 1,892 1,893 1,990 2,018 2,377 2,537 \n \n-- -- 12,724 5,009 -- -- -- -- -- -- \n \nContributions in relation to the actuarially determined contribution \n(b) \n2,600 1,932 2,083 2,279 2,375 4,261 7,623 6,684 6,566 5,254 \n1,434 1,282 1,521 1,703 1,892 1,893 1,990 2,018 2,377 2,537 \n-- -- 12,724 5,009 -- -- -- -- -- -- \n \nContribution deficiency (excess) (a-b) \n-- -- -- -- -- -- -- -- -- -- \n-- -- -- -- -- -- -- -- -- -- \n-- -- -- -- -- -- -- -- -- -- \n \nCovered payroll \n(c) \n51,293 52,331 51,898 52,807 54,787 54,272 57,401 59,695 60,572 60,532 \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \nn/a n/a 2,085,902 1,855,185 n/a n/a n/a n/a n/a n/a \n \nThis data, except for annual covered payroll, was provided by the System's actuary. \n1 No statistics regarding covered payroll are available. Contributions are not based upon members' salaries but are simply $4.00 per member, per month, for nine months, each fiscal year if hired prior to July 1, 2012 and $10 per month, per member, for nine months, if hired after July 1,2012. \n2 The Georgia General Assembly made contributions in some years that were not required. 3 No statistics regarding covered payroll are available. Active and inactive plan member information is maintained by the Georgia Department of Defense. \nSee accompanying notes to required supplementary schedules and accompanying independent auditors' report. \n \nContributions as a percentage \nof covered payroll (b/c) \n5.1% 3.7 4.0 4.3 4.3 7.9 13.3 11.2 10.8 8.7 \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \nn/a n/a 0.6 0.3 n/a n/a n/a n/a n/a n/a \n \n69 \n \n Financial Section \n \nRequired Supplementary Information (UNAUDITED) \nSchedules of Employers' and Nonemployers' Net Pension/OPEB Liability and Related Ratios  Defined Benefit Plans June 30, 2019 (In thousands) \nJune 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 \n \nEmployees' Retirement System: \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployers' and nonemployers' net pension liability \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \nCovered payroll \n \n$ \n \nEmployers' and nonemployers' net pension liability as a percentage of covered payroll \n \n17,744,003 13,617,472 \n4,126,531 \n76.74 % 2,615,491 \n157.77 % \n \n17,628,219 13,517,186 \n4,111,033 \n76.68 % 2,635,896 \n155.96 % \n \n17,159,634 13,098,299 \n4,061,335 \n76.33 % 2,565,918 \n158.28 % \n \n17,103,987 12,373,567 \n4,730,420 \n72.34 % 2,390,457 \n197.89 % \n \n17,019,362 12,967,964 \n4,051,398 \n76.20 % 2,353,225 \n172.16 % \n \n17,042,149 13,291,531 \n3,750,618 \n77.99 % 2,335,773 \n160.57 % \n \nPublic School Employees Retirement System: \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployers' and nonemployers' net pension liability \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \nCovered payroll \nEmployers' and nonemployers' net pension liability as a percentage of covered payroll \n \n1,107,495 941,587 165,908 \n85.02 % n/a \nn/a \n \n1,072,165 914,138 158,027 \n85.26 % n/a \nn/a \n \n1,013,163 868,134 145,029 \n85.69 % n/a \nn/a \n \n992,292 803,775 188,517 \n81.00 % n/a \nn/a \n \n946,200 823,150 123,050 \n87.00 % n/a \nn/a \n \n930,745 821,733 109,012 \n88.29 % n/a \nn/a \n \nLegislative Retirement System: \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployer's net pension asset \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \nCovered payroll \nEmployer's net pension asset as a percentage of covered payroll \n \n26,166 34,540 (8,374) \n132.00 % n/a \nn/a \n \n26,304 34,189 (7,885) \n129.98 % n/a \nn/a \n \n25,898 32,981 (7,083) \n127.35 % n/a \nn/a \n \n26,142 30,975 (4,833) \n118.49 % n/a \nn/a \n \n25,271 32,359 (7,088) \n128.05 % n/a \nn/a \n \n25,216 32,794 (7,578) \n130.05 % n/a \nn/a \n \nGeorgia Judicial Retirement System: \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployers' and nonemployers' net pension asset \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \nCovered payroll \n \n$ \n \nEmployers' and nonemployers' net pension asset as a percentage of covered payroll \n \n440,041 479,372 (39,331) \n108.94 % 60,532 \n64.98 % \n \n428,624 466,657 (38,033) \n108.87 % 60,572 \n62.79 % \n \n394,736 441,182 (46,446) \n111.77 % 59,695 \n77.81 % \n \n368,669 403,011 (34,342) \n109.32 % 57,401 \n59.83 % \n \n357,081 404,852 (47,771) \n113.38 % 54,272 \n88.02 % \n \n350,443 400,790 (50,347) \n114.37 % 54,787 \n91.90 % \n \n(continued) 70 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) \nSchedules of Employers' and Nonemployers' Net Pension/OPEB Liability and Related Ratios  Defined Benefit Plans June 30, 2019 (In thousands) \n \nJune 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 \n \nGeorgia Military Pension Fund: \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployers' net pension liability \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \nCovered payroll \nEmployers' net pension liability as a percentage of covered payroll \n \n45,639 26,417 19,222 \n57.88% n/a \nn/a \n \n43,204 23,653 19,551 \n54.75% n/a \nn/a \n \n40,085 20,711 19,374 \n51.67% n/a \nn/a \n \n36,950 17,717 19,233 \n47.95% n/a \nn/a \n \n33,343 16,712 16,631 \n50.12% n/a \nn/a \n \n31,511 15,251 16,260 \n48.4% n/a \nn/a \n \nState Employees' Assurance Department - Retired and Vested Inactive Members Trust Fund: \n \nTotal pension liability Plan fiduciary net position \n \n$ \n \n951,091 \n \n918,816 \n \n861,346 \n \n-- \n \n-- \n \n-- \n \n1,233,856 \n \n1,189,462 \n \n1,121,251 \n \n-- \n \n-- \n \n-- \n \nEmployer's net OPEB asset \n \n$ \n \n(282,765) \n \n(270,646) \n \n(259,905) \n \n-- \n \n-- \n \n-- \n \nPlan fiduciary net position as a percentage of the total OPEB liability \n \n129.73% \n \n129.46% \n \n130.17% \n \n--% \n \n--% \n \n--% \n \nCovered payroll \n \n$ \n \n1,211,274 \n \n1,328,485 \n \n1,383,860 \n \n-- \n \n-- \n \n-- \n \nEmployers' net OPEB asset as a percentage of covered payroll \n \n23.34% \n \n20.37% \n \n18.78% \n \n-- \n \n-- \n \n-- \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n71 \n \n Financial Section \n \nRequired Supplementary Information (UNAUDITED) \nSchedules of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability  Defined Benefit Plans June 30, 2019 (In thousands) \n \nJune 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 \n \nEmployee's Retirement System: Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions \nNet change in total pension liability Total pension liability-beginning \nTotal pension liability-end (a) \nPlan fiduciary net position: Contributions-employer Contributions-nonemployer Contributions-member Administrative expense allotment Net investment income Benefit payments Administrative expense Refunds of contributions Other1 \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \nPlan fiduciary net position-end(b) \nNet pension liability-end (a)-(b) \n \n$ \n \n135,679 \n \n1,233,882 \n \n42,097 \n \n155,573 \n \n-- \n \n(1,443,756) \n \n(7,691) \n \n115,784 17,628,219 \n \n17,744,003 \n \n638,989 10,220 36,252 10 \n873,404 (1,443,756) \n(7,142) (7,691) \n-- \n \n100,286 13,517,186 \n \n13,617,472 \n \n$ \n \n4,126,531 \n \n129,294 1,233,689 \n31,097 180,655 314,733 (1,413,298) \n(7,585) \n468,585 17,159,634 \n17,628,219 \n639,302 12,865 37,130 10 \n1,166,013 (1,413,298) \n(8,056) (7,585) (7,494) \n418,887 13,098,299 \n13,517,186 \n4,111,033 \n \n125,910 1,230,175 \n30,563 72,315 \n-- (1,394,283) \n(9,033) \n55,647 17,103,987 \n17,159,634 \n613,201 12,080 35,863 10 \n1,475,626 (1,394,283) \n(8,732) (9,033) \n-- \n724,732 12,373,567 \n13,098,299 \n4,061,335 \n \n143,043 1,225,650 \n-- (238) 70,890 (1,347,633) (7,087) \n84,625 17,019,362 \n17,103,987 \n583,082 12,484 31,961 10 \n141,292 (1,347,633) \n(8,506) (7,087) \n-- \n(594,397) 12,967,964 \n12,373,567 \n4,730,420 \n \n145,045 1,227,846 \n-- (53,950) \n-- (1,334,278) \n(7,450) \n(22,787) 17,042,149 \n17,019,362 \n505,668 12,495 33,713 10 \n474,147 (1,334,278) \n(7,872) (7,450) \n-- \n(323,567) 13,291,531 \n12,967,964 \n4,051,398 \n \n150,075 1,224,380 \n-- -- -- (1,305,998) (8,757) \n59,700 16,982,449 \n17,042,149 \n418,807 10,945 32,423 -- \n2,021,748 (1,305,998) \n(7,440) (8,757) \n-- \n1,161,728 12,129,803 \n13,291,531 \n3,750,618 \n \n1 The System is a participating employer in the Georgia State Employees Postemployment Benefit Fund and the State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund. Pursuant to the requirements of GASB Statement No. 75, the fiscal year 2018 beginning Fiduciary Net Position was restated by $7,494,507. The restatement of net position was made for reporting purposes to reflect the impact of recording the initial deferred outflows of resources, net OPEB liability, and net OPEB asset. For actuarial purposes, this adjustment is being recognized in fiscal year 2018 and beginning fiduciary net position was not restated. \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. \nSee accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n(continued) 72 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) \nSchedules of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability  Defined Benefit Plans June 30, 2019 (In thousands) \n \nPublic School Employees Retirement System: Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions \nNet change in total pension liability Total pension liability-beginning \nTotal pension liability-end (a) \nPlan fiduciary net position: Contributions-employer Contributions-member Net investment income Benefit payments Administrative expense Refunds of contributions \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \nPlan fiduciary net position-end(b) \nNet pension liability-end (a)-(b) \n \nJune 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 \n \n$ \n \n13,762 \n \n75,923 \n \n18,050 \n \n(8,159) \n \n-- \n \n(63,637) \n \n(609) \n \n35,330 1,072,165 \n \n1,107,495 \n \n30,263 2,256 \n60,553 (63,637) \n(1,377) (609) \n \n27,449 914,138 \n \n941,587 \n \n$ \n \n165,908 \n \n13,180 73,643 17,289 (3,943) 21,354 (61,820) \n(701) \n59,002 1,013,163 \n1,072,165 \n29,276 2,162 \n78,418 (61,820) \n(1,331) (701) \n46,004 868,134 \n914,138 \n158,027 \n \n12,788 72,157 \n-- (3,665) \n-- (59,378) \n(1,031) \n20,871 992,292 \n1,013,163 \n26,277 2,084 \n97,715 (59,378) \n(1,308) (1,031) \n64,359 803,775 \n868,134 \n145,029 \n \n11,952 68,776 \n-- (9,483) 33,215 (57,903) \n(465) \n46,092 946,200 \n992,292 \n28,580 1,925 9,809 \n(57,903) (1,321) (465) \n(19,375) 823,150 \n803,775 \n188,517 \n \n12,088 67,652 \n-- (6,858) \n-- (56,972) \n(455) \n15,455 930,745 \n946,200 \n28,461 1,800 \n30,129 (56,972) \n(1,545) (456) \n1,417 821,733 \n823,150 \n123,050 \n \n11,049 66,143 \n-- -- -- (56,189) (514) \n20,489 910,256 \n930,745 \n27,160 1,659 \n123,799 (56,189) \n(1,450) (514) \n94,465 727,268 \n821,733 \n109,012 \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n(continued) 73 \n \n Financial Section \n \nRequired Supplementary Information (UNAUDITED) \nSchedules of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability  Defined Benefit Plans June 30, 2019 (In thousands) \nJune 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 \n \nLegislative Retirement System: \n \nTotal pension liability: \n \nService cost \n \n$ \n \nInterest \n \nBenefit changes \n \nDifferences between expected and actual experience \n \nChanges of assumptions \n \nBenefit payments \n \nRefunds of contributions \n \nNet change in total pension liability Total pension liability-beginning \n \nTotal pension liability-end (a) \n \nPlan fiduciary net position: Contributions-employer Contributions-member Net investment income Benefit payments Administrative expense Refunds of contributions \n \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \n \nPlan fiduciary net position-end(b) \n \nNet pension liability-end (a)-(b) \n \n$ \n \n366 1,850 \n-- (428) \n-- (1,856) \n(70) \n(138) 26,304 \n26,166 \n-- 339 2,228 (1,856) (290) (70) \n351 34,189 \n34,540 \n(8,374) \n \n359 1,875 \n-- (481) 447 (1,772) \n(22) \n406 25,898 \n26,304 \n-- 323 2,962 (1,772) (283) (22) \n1,208 32,981 \n34,189 \n(7,885) \n \n357 1,892 \n-- (655) \n-- (1,763) \n(75) \n(244) 26,142 \n25,898 \n-- 327 3,741 (1,763) (224) (75) \n2,006 30,975 \n32,981 \n(7,083) \n \n331 1,829 \n-- (465) 938 (1,724) \n(38) \n871 25,271 \n26,142 \n-- 328 363 (1,724) (313) (38) \n(1,384) 32,359 \n30,975 \n(4,833) \n \n338 1,824 \n-- (325) \n-- (1,756) \n(26) \n55 25,216 \n25,271 \n-- 327 1,189 (1,756) (169) (26) \n(435) 32,794 \n32,359 \n(7,088) \n \n344 1,799 \n-- -- -- (1,801) (30) \n312 24,904 \n25,216 \n45 282 4,969 (1,801) (152) (30) \n3,313 29,481 \n32,794 \n(7,578) \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n(continued) 74 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) \nSchedules of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability  Defined Benefit Plans June 30, 2019 (In thousands) \n \nGeorgia Judicial Retirement System: Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions \nNet change in total pension liability Total pension liability-beginning \nTotal pension liability-end (a) \nPlan fiduciary net position: Contributions-employer Contributions-nonemployer Contributions-member Net investment income Benefit payments Administrative expense Refunds of contributions \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \nPlan fiduciary net position-end(b) \nNet pension liability-end (a)-(b) \n \nJune 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 \n \n$ \n \n13,350 \n \n30,267 \n \n1,065 \n \n(5,250) \n \n-- \n \n(27,462) \n \n(553) \n \n11,417 428,624 \n \n440,041 \n \n3,117 2,137 5,469 30,827 (27,462) \n(820) (553) \n \n12,715 466,657 \n \n479,372 \n \n$ \n \n(39,331) \n \n13,019 28,666 \n3,442 6,379 7,466 (24,934) \n(150) \n33,888 394,736 \n428,624 \n4,725 1,841 4,910 39,877 (24,934) \n(794) (150) \n25,475 441,182 \n466,657 \n(38,033) \n \n12,514 26,826 \n3,419 5,258 \n-- (21,784) \n(166) \n26,067 368,669 \n394,736 \n4,081 2,603 4,906 49,259 (21,784) \n(728) (166) \n38,171 403,011 \n441,182 \n(46,446) \n \n12,713 26,058 \n-- (3,603) (4,308) (19,011) \n(261) \n11,588 357,081 \n368,669 \n4,754 2,869 5,507 5,055 (19,011) \n(754) (261) \n(1,841) 404,852 \n403,011 \n(34,342) \n \n7,751 25,566 \n-- (7,542) \n-- (18,365) \n(772) \n6,638 350,443 \n357,081 \n2,696 1,564 5,061 14,697 (18,365) \n(819) (772) \n4,062 400,790 \n404,852 \n(47,771) \n \n7,584 24,530 \n-- -- -- (17,441) (22 \n14,651 335,792 \n350,443 \n1,373 1,002 4,731 60,012 (17,441) \n(754) (22) \n48,901 351,889 \n400,790 \n(50,347) \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n(continued) 75 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) \nSchedules of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability  Defined Benefit Plans June 30, 2019 (In thousands) \n \nGeorgia Military Pension Fund: Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions \nNet change in total pension liability Total pension liability-beginning \nTotal pension liability-end (a) \nPlan fiduciary net position: Contributions-employer Contributions-member Net investment income Benefit payments Administrative expense Refunds of contributions Other \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \nPlan fiduciary net position-end(b) \nNet pension liability-end (a)-(b) \n \nJune 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 \n \n$ \n \n97 \n \n3,109 \n \n-- \n \n449 \n \n-- \n \n(1,220) \n \n-- \n \n2,435 43,204 \n \n45,639 \n \n2,537 -- \n1,683 (1,220) \n(236) -- -- \n \n2,764 23,653 \n \n26,417 \n \n$ \n \n19,222 \n \n84 2,964 \n-- 116 1,093 (1,138) \n-- \n3,119 40,085 \n43,204 \n2,377 -- \n1,928 (1,138) \n(225) -- -- \n2,942 20,711 \n23,653 \n19,551 \n \n89 2,732 \n-- 1,356 \n-- (1,042) \n-- \n3,135 36,950 \n40,085 \n2,018 -- \n2,262 (1,042) \n(244) -- -- \n2,994 17,717 \n20,711 \n19,374 \n \n73 2,465 \n-- 950 1,082 (963) \n-- \n3,607 33,343 \n36,950 \n1,990 -- \n240 (963) (262) \n-- -- \n1,005 16,712 \n17,717 \n19,233 \n \n73 2,330 \n-- 326 \n-- (897) \n-- \n1,832 31,511 \n33,343 \n1,893 -- \n585 (896) (121) \n-- -- \n1,461 15,251 \n16,712 \n16,631 \n \n73 2,223 \n-- -- -- (841) -- \n1,455 30,056 \n31,511 \n1,892 -- \n2,179 (841) (110) -- -- \n3,120 12,131 \n15,251 \n16,260 \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n(continued) 76 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) \nSchedules of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability  Defined Benefit Plans June 30, 2019 (In thousands) \n \nJune 30, 2019 June 30, 2018 June 30, 2017 \n \nStatement Employees' Assurance Department Retired and Vested Inactive Members Trust Fund: \n \nTotal OPEB Liability: \n \nService cost \n \n$ \n \nInterest \n \nBenefit changes \n \nDifferences between expected and actual experience \n \nChanges of assumptions \n \nBenefit payments \n \nRefunds of contributions \n \nNet change in total OPEB liability Total OPEB liability-beginning \n \nTotal OPEB liability-end \n \nPlan fiduciary net position: Contributions - employer Insurance premiums - member Net investment income Benefit payments Administrative expense Refunds of contributions Other \n \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \n \nPlan fiduciary net position-end(b) \n \nNet OPEB asset-end (a)-(b) \n \n$ \n \n3,617 65,708 \n-- 366 \n-- (37,416) \n-- \n32,275 918,816 \n951,091 \n-- 3,328 79,193 (37,416) \n(716) -- 5 \n44,394 1,189,462 \n1,233,856 \n(282,765) \n \n3,695 63,242 \n-- 4,697 22,085 (36,249) \n-- \n57,470 861,346 \n918,816 \n-- 3,599 101,542 (36,249) \n(681) -- -- \n68,211 1,121,251 \n1,189,462 \n(270,646) \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n3,959 61,076 \n-- -- -- (36,058) -- \n28,977 832,369 \n861,346 \n1 3,793 125,550 (36,058) \n(576) -- -- \n92,710 1,028,541 \n1,121,251 \n(259,905) \n \n77 \n \n Required Supplementary Information (UNAUDITED) \nSchedule of Investment Returns Year ended June 30, 2019 \n \nFinancial Section \n \nPooled Investment Fund: Annual money-weighted rate of return, net of investment expense \n \n2019 \n \n2018 \n \n2017 \n \n(1.8)% \n \n0.6% \n \n2.9% \n \nSchedule is intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n2016 \n \n2015 \n \n(7.2)% (5.3)% \n \n2014 6.0% \n \n78 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) \nSchedules of the System's Proportionate Share of the Net OPEB Liability Year ended June 30, 2019 (In thousands) \n \nJune 30, 2019 June 30, 2018 \n \nSEAD-OPEB: System's proportionate share of the net OPEB liability (asset) System's proportionate share of the net OPEB liability (asset) System's covered payroll \nSystem's proportionate share of the net OPEB liability (asset) as a percentage of its covered payroll \nPlan fiduciary net position as a percentage of the total OPEB liability \n \n0.200064 % \n \n0.192864 % \n \n$ \n \n(541) $ \n \n(501) \n \n2,770 \n \n2,809 \n \n(19.55)% 129.46 % \n \n(17.85)% 130.17 % \n \nState OPEB Fund: System's proportion of the net OPEB liability System's proportionate share of the net OPEB liability System's covered payroll \nSystem's proportionate share of the net OPEB liability as a percentage of its covered payroll \nSystem's fiduciary net position as a percentage of the total OPEB liability \n \n0.181584 % \n \n0.185830 % \n \n$ \n \n4,749 $ \n \n7,571 \n \n5,415 \n \n5,265 \n \n87.71 % 31.48 % \n \n143.81 % 17.34 % \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedules and accompanying independent auditors' report. \n \n79 \n \n Required Supplementary Information (UNAUDITED) \nSchedules of the System's Contributions to OPEB Plans Year ended June 30, 2019 (In thousands) \n \nFinancial Section \n \nJune 30, 2019 June 30, 2018 \n \nSEAD-OPEB: Contractually required contribution* Contributions in relation to the contractually required contribution \nContribution deficiency (excess) System's covered payroll Contributions as a percentage of a covered payroll \n \n$ \n \n--$ \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n2,567 \n \n2,770 \n \n--% \n \n--% \n \nState OPEB Fund: \n \nContractually required contribution \n \n$ \n \nContributions in relation to the contractually required contribution \n \nContribution deficiency (excess) \n \nSystem's covered payroll \n \nContributions as a percentage of a covered payroll \n \n*Employer contributions are not currently required for the SEAD-OPEB plan. Schedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedules and accompanying independent auditors' report. \n \n1,012 $ 1,012 \n-- 5,578 18.15% \n \n905 905 \n-- 5,415 16.71% \n \n80 \n \n Financial Section \nNotes to Required Supplementary Information (UNAUDITED) \nJune 30, 2019 \nRequired Supplementary Information Schedules for the System as the Plan: \n(1) Schedule of Employers' and Nonemployers' Contributions  Defined Benefit Plans \nThis schedule presents the required contributions and the percent of required contributions actually contributed. (2) Schedule of Employers' and Nonemployers' Net Pension/OPEB Liability and Related Ratios \n Defined Benefit Plans \nThe components of the net pension/OPEB liability as of the fiscal year end and the fiduciary net position as a percentage of the total pension/OPEB liability as of that date are presented in this schedule. This trend information will be accumulated to display a 10-year presentation. (3) Schedule of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability  Defined Benefit Plans \nNet pension/OPEB liability, which is measured as total pension/OPEB liability less the amount of the fiduciary net position, is presented in this schedule. This trend information will be accumulated to display a 10-year presentation. (4) Schedule of Investment Returns \nThis schedule presents historical trend information about the annual money-weighted rate of return on plan investments, net of plan investment expense. This trend information will be accumulated to display a 10year presentation. (5) Individual Plan Information \nThis note provides information about changes of benefit terms, changes of assumptions, and methods and assumptions used in calculations of actuarially determined contributions. \n(a) Employees' Retirement System \nChanges of benefit terms   A new benefit tier was added for members joining the System on and after July 1, 2009.  A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2016.  A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2017.  Two one-time 2% payments were granted to certain retirees and beneficiaries effective July 2018 and January 2019. \nChanges of assumptions  Subsequent to the June 30, 2017 measurement date, the ERS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the ERS Board's new funding policy, the assumed investment rate of return was reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. \n(continued) 81 \n \n Notes to Required Supplementary Information (UNAUDITED) \nJune 30, 2019 \n \nFinancial Section \n \n(b) Public School Employees' Retirement System \nChanges of benefit terms  The member contribution rate was increased from $4 to $10 per month for members joining the System on or after July 1, 2012. The monthly benefit accrual rate was increased from $14.75 to $15.00 per year of creditable service effective July 1, 2017. The monthly benefit accrual rate was increased from $15.00 to $15.25 per year of creditable service effective July 1, 2018. \nChanges of assumptions  Subsequent to the June 30, 2017 measurement date, the PSERS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the PSERS Board's new funding policy, the assumed investment rate of return was reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. \n(c) Legislative Retirement System \nChanges of benefit terms  none \nChanges of assumptions  Subsequent to the June 30, 2017 measurement date, the ERS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the ERS Board's new funding policy, the assumed investment rate of return was reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. \n(d) Georgia Judicial Retirement System \nChanges of benefit terms  Spouses' benefits were changed for members joining the System on and after July 1, 2012. A 2% cost-of-living adjustment was granted to certain retired members and beneficiaries effective July 1, 2016. A 2% cost-of-living adjustment was granted to certain retired members and beneficiaries effective July 1, 2018. A 2% cost-of-living adjustment was granted to certain retired members and beneficiaries effective July 1, 2019. \nChanges of assumptions  Subsequent to the June 30, 2017 measurement date, the GJRS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the GJRS Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. \n(e) Georgia Military Pension Fund \nChanges of benefit terms  none \nChanges of assumptions  Subsequent to the June 30, 2017 measurement date, the ERS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the ERS Board's new funding policy, the assumed investment rate of return was reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. \n \n(continued) 82 \n \n Financial Section \nNotes to Required Supplementary Information (UNAUDITED) \nJune 30, 2019 (f) State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEADOPEB) as a plan Changes of benefit terms  none Changes of assumptions  Subsequent to the June 30, 2017 measurement date, the SEAD Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the SEAD Board's new funding policy, the assumed investment rate of return was reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. \n(continued) 83 \n \n Financial Section \nNotes to Required Supplementary Information (UNAUDITED) \nJune 30, 2019 \nThe following actuarial methods and assumptions were used to determine the most recent contribution rates reported in the schedules of employer and nonemployer contributions calculated as of June 30, three years prior to the end of the first calendar year in which contributions are reported: \n \nActuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases Investment rate of return \nCost of living adjustments \n \nERS \nEntry age Level dollar, closed 18.2 years Five-year smoothed fair 2.75% 3.25 to 7.00% 7.50% net of pension plan investment expense, including inflation None \n \nPSERS \nEntry age Level dollar, closed 21.9 years Five-year smoothed fair 2.75% n/a 7.50% net of pension plan investment expense, including inflation 1.50% Semi-annually \n \nLRS \nEntry age Level dollar, open Infinite Five-year smoothed fair 2.75% n/a 7.50% net of pension plan investment expense, including inflation 1.50% Semi-annually \n \nActuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases Investment rate of return \nCost of living adjustments \n \nGJRS Entry age Level percent of pay, closed 17.8 years Five-year smoothed fair 2.75% 4.50% 7.50% net of pension plan investment expense, including inflation None \n \nGMPF Entry age Level dollar, closed 17.3 years Five-year smoothed fair 2.75% n/a 7.50% net of pension plan investment expense, including inflation None \n \nActuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases \nERS JRS LRS Investment rate of return \nCost of living adjustments \n \nSEAD - OPEB Entry age Level percent, open Infinite Fair value of assets 2.75% \n3.25-7.00% 4.50% n/a 7.50% net of pension plan investment expense, including inflation None \n \n(continued) 84 \n \n Financial Section \nNotes to Required Supplementary Information (UNAUDITED) \nJune 30, 2019 Required Supplementary Information Schedules for the System as a participating employer: (1) Schedules of the System's Proportionate Share of the Net OPEB Liability \nThe information in this schedule presents historical information related to the OPEB liability that is recognized by the System in the current period financial statements. This trend information will be accumulated to display a 10 year presentation. \n(2) Schedules of the System's Contributions to OPEB Plans This schedule presents the required contributions and the percent of required contributions actually contributed. \n(3) Individual Plan Information This note provides information about changes of benefit terms, changes of assumptions, and methods and assumptions used in calculations of actuarially determined contributions. \n(a) SEAD-OPEB Changes of benefit terms  none Changes of assumptions  On December 17, 2015, the SEAD Board adopted recommended changes to the economic and demographic assumptions utilized by the Plan. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 Measurement Date. \n(b) State OPEB Fund Changes of benefit terms  In the June 30, 2010 actuarial valuation, there was a change of benefit terms to require Medicare-eligible recipients to enroll in a Medicare Advantage plan to receive the State subsidy. Changes of assumptions  In the revised June 30, 2017 actuarial valuation, there was a change relating to employee allocation. Employees were previously allocated based on their Retirement System membership, and currently employees are allocated based on their current employer payroll location. In the June 30, 2015 actuarial valuation, decremental and underlying inflation assumptions were changed to reflect the Retirement Systems' experience studies. In the June 30, 2012 actuarial valuation, a data audit was performed and data collection procedures and assumptions were changed. \n85 \n \n Additional Information \n \nFinancial Section \n \nStatement of Changes in Assets and Liabilities - Survivors Benefit Fund Year ended June 30, 2019 (In thousands) \n \nAssets: Cash and cash equivalents Equity in pooled investment fund Total assets \nLiabilities: Due to other funds/plans \nTotal liabilities \n \nBalance 6/30/2018 \n \nAdditions Deductions \n \nBalance 6/30/2019 \n \n$ \n \n91 \n \n148,450 \n \n148,541 \n \n-- 10,208 \n10,208 \n \n5 \n \n86 \n \n-- \n \n158,658 \n \n5 \n \n158,744 \n \n148,541 \n \n$ \n \n148,541 \n \n10,208 10,208 \n \n(5) \n \n158,744 \n \n(5) \n \n158,744 \n \nSee accompanying independent auditors' report. \n \n(continued) 86 \n \n Financial Section \nAdditional Information \nSchedule of Administrative Expenses - Contributions and Expenses Year ended June 30, 2019 (In thousands) \n \nContributions from fiduciary funds: Employees' Retirement System Public School Employees Retirement System Legislative Retirement System Georgia Judicial Retirement System Georgia Military Pension Fund Superior Court Judges Retirement Fund District Attorneys Retirement Fund Georgia Defined Contribution Plan 401(k) Plan 457 Plan State Employees' Assurance Department - OPEB \nTotal fiduciary funds \nContributions from proprietary fund: State Employees' Assurance Department Active Members Fund \nTotal contributions \nExpenses: Personal services: Salaries and fringes Retirement contributions FICA Health insurance Miscellaneous \nCommunications: Postage Publications and printing Telecommunications Travel \nProfessional services: Accounting services Computer services Contracts Actuarial services Medical services Audit fees Legal services \nManagement fees: Building maintenance \nOther services and charges: Temporary services Supplies and materials Repairs and maintenance Courier services Depreciation Miscellaneous Office equipment \nTotal expenses Net income \nSee accompanying independent auditors' report. \n \n$ \n \n7,142 \n \n1,377 \n \n290 \n \n820 \n \n235 \n \n2 \n \n1 \n \n882 \n \n3,431 \n \n724 \n \n716 \n \n15,620 \n \n80 15,700 \n \n5,581 1,307 \n403 220 \n51 7,562 \n \n253 9 \n98 18 378 \n \n714 877 3,691 298 111 368 \n27 6,086 \n \n635 \n \n560 \n \n84 \n \n29 \n \n4 \n \n290 \n \n70 \n \n2 \n \n1,039 \n \n15,700 \n \n$ \n \n0 \n \n87 \n \n Additional Information Schedule of Investment Expenses \nYear ended June 30, 2019 (In thousands) \nInvestment advisory and custodial fees Miscellaneous Total investment expenses \nSee accompanying independent auditors' report. \n \nFinancial Section \n \n$ \n \n8,124 \n \n12,199 \n \n$ \n \n20,323 \n \n88 \n \n Investment Section \nFinding the Hidden Gems in Georgia \nSchool Bus Graveyard - Alto \n \n Investment Section \n \nInvestment Overview \nSlowing global growth and heightened geopolitical tensions are key themes as a new fiscal year begins. For the U.S., annual economic growth as measured by Real GDP rose 2.3%. This is a deceleration from last fiscal year, a trend that is generally consistent across the world. Overall, U.S. equity returns this past year were up over 9%, while foreign markets lagged with a modest 1% return. Longer-term periods for total equities were generally quite positive. \nWe continually emphasize that the pension plan has a long-term investment horizon and that short-term concerns should not drive investment decisions. The System invests primarily in a mix of liquid, high-quality bonds and stocks. In addition, the System continues to build its private markets program in a disciplined manner. These types of investments further diversify the portfolio and allow the System to participate in rising markets while moderating the risks on the downside. A high-quality balanced fund has proven to be a successful strategy in a variety of markets over long periods of time. \nAs in previous years, the bias to quality was a primary goal and was successfully met. \"Conservation of Capital\" and \"Conservatism\" remain the guiding principles for investment decisions. The Board of Trustees continues to use a diversified portfolio to accomplish these objectives. \nU.S. economic growth has slowed somewhat to slightly over 2% with a strong consumer sector offsetting a slowing manufacturing sector. A relatively low inflation rate, strong employment, and rising wages are keeping consumer spending strong. The international economic situation is not as resilient, which has prompted central banks worldwide to shift to a policy of accommodation after broadly raising rates the last few years. Globally, most surprising has been the continued aggressive bond-buying program in Europe where the overall deposit rate is negative and a shockingly large number of corporate issues are selling at negative rates. One emerging trend is a decline in the outlook for corporate earnings. \nStudies undertaken to evaluate the investment returns of pension funds over very long-time horizons indicate that the asset allocation decision has the largest impact on the fund's returns. Although the returns for the various asset categories vary from year to year, over the long term, equities typically outperform fixed income and cash by a very wide margin. For that reason, the System has generally maintained significant equity exposure with the remainder of the fund invested in fixed income securities designed to generate income and preserve capital. \nReturns for one, three, five, ten and twenty-year periods are presented in this section. Longer periods, such as the twentyyear, allow for a more valid evaluation of returns, both in absolute terms and relative to an asset class index, by reducing emphasis on the short-term volatility of markets. The Daily Valuation Method, a time-weighted rate of return, was used to calculate returns in a manner consistent with the CFA Institute's objectives as stated in its publication \"Global Investment Performance Standards Handbook,\" third edition. \n \nThe return for the S\u0026P 500 was 10.4%. The S\u0026P MidCap 400 and the S\u0026P SmallCap 600 indexes had returns of 1.4% and (4.9%), respectively. Growth stocks generally outperformed value stocks for the year, while, by sector, utilities edged out information technology for the best performance. Energy was the worst-performing sector and was one of only two sectors that declined this past fiscal year. \nInternational market returns were positive but weak. The MSCI EAFE Index returned 1.3%, and the Emerging Market Index had a return of 1.2%. For reference, the ICE U.S. Dollar Index was up 1.6% for the year. \nInterest rates declined the last year across the maturity spectrum. Parts of the yield curve inverted this year as the ten-year treasury yield dropped. In fact, the ten-year Treasury return was 10.3% as compared to returns of 2.3%, 3.0%, and 7.4% for the threemonth, one-year, and five-year Treasuries, respectively. During the fiscal year, the Federal Reserve raised rates twice for a total of 50 basis points. \nWe look at two fixed income indexes to measure the bond market's performance. The Bloomberg Barclays Government / Credit Index had a return of 8.5%. It is a broad index containing corporate and government-sponsored bonds as well as Treasuries. The FTSE Gov/Corp AAA/AA had a return of 7.4% and is a broad index containing higher-rated corporate bonds as well as Treasuries and government securities. The spread between corporate bonds and Treasury bonds widened during the first half of the fiscal year as the Federal Reserve pushed rates higher. This trend reversed in the second half of the fiscal year, leading to better corporate performance. \nIn 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.\" \nPrepared by the Division of Investment Services \n \n90 \n \n Pooled Investment Fund \nAs of June 30, 2019 (dollar amounts in thousands) \nEmployees' Retirement System (ERS) Public School Employees Retirement System (PSERS) Legislative Retirement System (LRS) Georgia Judicial Retirement System (GJRS) State Employees' Assurance Department (SEAD) - Active State Employees' Assurance Department (SEAD) - OPEB Survivors Benefit Fund (SBF) Georgia Military Pension Fund (GMPF) \nTotal \n \nInvestment Section \n \n$ \n \n13,567,302 \n \n942,101 \n \n34,559 \n \n478,823 \n \n305,795 \n \n1,233,750 \n \n158,658 \n \n26,404 \n \n$ \n \n16,747,392 \n \nRates of Return \n \n16.0 14.0 12.0 10.0 \n8.0 6.0 4.0 2.0 0.0 \n \n1 Year \n \n3 Year \n \n5 Year 10 Year 20 Year \n \nEquities MSCI ACWI ex US \n \nS\u0026P 1500 \n \n10.0 \n \n8.0 \n \n6.0 \n \n4.0 \n \n2.0 \n \n0.0 \n \n1 Year \n \n3 Year \n \n5 Year 10 Year 20 Year \n \nFixed Income 1 month T bills \n \nBarclays Govt/Credit \n \n10.0 \n \n8.0 \n \n6.0 \n \n4.0 \n \n2.0 \n \n0.0 \n \n1 Year \n \n3 Year \n \n5 Year 10 Year 20 Year \n \nTotal Portfolio \n \nCPI \n \nEquities \n \nS\u0026P 1500 MSCI ACWI ex US \n \nFixed Income \n \nBarclay's Govt/Credit \n \n1 Month T-Bills \n \nTotal Portfolio \n \n1 year 3 year 5 year 10 year 20 year \n \n6.54% 12.92% \n8.40% 12.69% \n5.36% \n \n9.32% 13.91% 10.45% 14.73% \n6.30% \n \n1.29% 9.39% 2.16% 6.54% \n--% \n \n7.08% 1.80% 2.60% 3.42% 5.01% \n \n8.52% 2.41% 3.11 % 4.09% 5.02% \n \n2.28% 1.32% 0.81% 0.44% 1.66% \n \n6.90% 9.49% 6.66% 9.70% 5.79% \n \nNote: Time-weighted rates of return are calculated using the Daily Valuation Method based on market rates of return. \n \nCPI \n1.66% 2.06% 1.48% 1.74% 2.18% \n \n91 \n \n Asset Allocation at Fair Value \n \nInvestment Section \n \n80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% \n0.00% \n \n2019 \n \n2018 \n \n2017 \n \nEquities Mutual \u0026 Commingled Funds \n \n2016 \n \n2015 \n \nFixed Income Private Equity \n \n2014 \n \nInvestment Summary \n \nAsset Allocation as of June 30 (in percentages) \n \nEquities Fixed Income Mutual and Commingled Funds Private Equity \n \n2019 61.1% 27.4 9.7 1.8 \n \n2018 61.9 28.1 8.8 1.2 \n \n2017 63.9 27.1 8.2 0.8 \n \n2016 62.3 29.5 7.6 0.6 \n \n2015 65.3 27.2 7.2 0.3 \n \n2014 67.2 25.6 7.1 0.1 \n \nTotal \n \n100.0% 100.0 \n \n100.0 \n \n100.0 \n \n100.0 \n \n100.0 \n \nAsset Allocation as of June 30 (in millions) \n \nEquities Fixed Income Mutual and Commingled Funds Private Equity \n \n2019 \n$ 11,138 4,984 1,769 335 \n \n2018 \n11,140 5,040 1,599 222 \n \n2017 \n11,030 4,668 1,421 134 \n \n2016 \n10,005 4,733 1,226 94 \n \n2015 \n10,915 4,543 1,204 52 \n \n2014 \n11,372 4,314 1,209 22 \n \nTotal \n \n$ 18,226 18,001 17,253 16,058 16,714 16,917 \n \n92 \n \n Schedule of Fees and Commissions (In thousands) \nYear ended June 30, 2019 \n \nInvestment Advisors' Fees: \n \nU.S. Equity \n \n$ \n \nInternational Equity \n \nFixed Income \n \nInvestment Commissions: \n \nU.S. Equity \n \nInternational Equity \n \nTransaction Fees: \n \nMiscellaneous*: \n \nTotal Fees and Commissions \n \n$ \n \n*Includes capitalized fees not included in total investment expenses shown on page 88. \n \nInvestment Section \n3,190 4,351 \n-- \n1,690 1,150 \n648 19,061 30,090 \n \n93 \n \n Twenty Largest Equity Holdings  (In thousands) \nAs of June 30, 2019 \n \nShares \n1,763,294 113,471 974,584 162,341 624,287 652,410 850,168 438,470 616,940 1,106,213 464,800 293,419 625,698 185,950 1,150,157 1,445,785 284,612 469,999 411,837 1,947,386 \n \nCompany \nMicrosoft Corp. Amazon.Com Inc. Apple Inc. Alphabet Inc. Facebook Inc. Visa Inc. JPMorgan Chase \u0026 Co. Berkshire Hathaway Inc. Johnson \u0026 Johnson Exxon Mobil Corp. Alibaba Group Holding Ltd. UnitedHealth Group Procter \u0026 Gamble Co. Netflix Inc. Verizon Communications Inc. Pfizer Inc. The Home Depot Inc. Chevron Corp. The Walt Disney Co. Bank of America Corp. \n \nInvestment Section \n \nFair Value \n \n$ \n \n236,211 \n \n214,872 \n \n192,890 \n \n175,646 \n \n120,487 \n \n113,226 \n \n95,049 \n \n93,469 \n \n85,927 \n \n84,769 \n \n78,760 \n \n71,597 \n \n68,608 \n \n68,303 \n \n65,709 \n \n62,631 \n \n59,191 \n \n58,487 \n \n57,509 \n \n56,474 \n \nTop Twenty Equities Remaining Equities \n \n$ \n \n2,059,815 \n \n9,077,616 \n \nTotal Equities \nA complete listing is available upon written request, subject to restrictions of O.C.G.A. Section 47-1-14. \n \n$ \n \n11,137,431 \n \n94 \n \n Top 10 Fixed Income Holdings* \nAs of June 30, 2019 \n \nInvestment Section \n \nIssuer \nUS TREAS. NOTE US TREAS. NOTE US TREAS. NOTE US TREAS. NOTE US TREAS. NOTE US TREAS. NOTE US TREAS. NOTE US TREAS. NOTE GENERAL ELECTRIC COMPANY US TREAS. BOND \n \nYear of Maturity \n2024 2025 2025 2025 2027 2023 2027 2021 2022 2039 \n \nInterest Rate \n \nPar Value (in thousands) \n \n2.2500% $ 2.6250 2.5000 2.7500 2.2500 1.5000 2.2500 2.1250 2.7000 3.5000 \n \n313,000 200,000 200,000 190,000 192,000 195,000 160,000 153,000 141,000 113,000 \n \nFair Value (in thousands) \n \n$ \n \n320,287 \n \n208,836 \n \n207,406 \n \n200,108 \n \n196,658 \n \n193,378 \n \n163,800 \n \n154,166 \n \n140,843 \n \n134,227 \n \nTotal of 10 Largest ERS \u0026 GDCP Fixed Income Holdings Remaining Fixed Income Holdings \nTotal ERS and Defined Contribution Fixed Income Securities \n \n1,919,709 $ 3,064,330 \n$ 4,984,039 \n \n*A complete listing is available upon written request, subject to restrictions of O.C.G.A. Section 47-1-14. \n \n95 \n \n Actuarial Section \nFinding the Hidden Gems in Georgia \nLunch Box Museum - Columbus \n \n Actuarial Section \n \nERS April 18, 2019 \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nBoard of Trustees Employees' Retirement System of Georgia Two Northside 75, Suite 300 Atlanta, GA 30318 \n \nAttn: Mr. James Potvin, Executive Director \nMembers of the Board: \nSection 47-2-26 of the law governing the operation of the Employees' Retirement System of Georgia provides that the actuary shall make annual valuations of the contingent assets and liabilities of the Retirement System on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2018. The report indicates that annual employer contributions at the rate of 19.91% of compensation for Old Plan Members, 24.66% of compensation for New Plan Members, and 21.57% of compensation for GSEPS Members for the fiscal year ending June 30, 2021 are sufficient to support the benefits of the System. \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2018 session of the General Assembly. The valuation reflects two one-time 2% payments to certain retirees and beneficiaries effective July 2018 and January 2019. Effective with the June 30, 2017 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the actual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of investment expenses. Since the actual rate of return for the year ending June 30, 2018 was greater than 7.40%, the assumed rate of return used in the current valuation was decreased from 7.40% to 7.30%. \n \nThe System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level as a percent of payroll. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a level percent of payroll. Gains and losses are reflected in the total unfunded accrued liability which is being amortized on a level dollar basis in accordance with the funding policy adopted by the Board. \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports. \nWe have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report: \n Summary of Actuarial Assumptions  Schedule of Active Members  Schedule of Funding Progress  Schedule of Retirees Added to and Removed from Rolls  Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \nThe System is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive valuations, the continued sufficiency \n \n(continued) 97 \n \n Actuarial Section \n \nof the retirement fund to provide the benefits called for under the System may be safely anticipated. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the System and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that \n \nanticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \nSincerely yours, \n \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n \nCathy Turcot Principal and Managing Director \n \nBen Mobley, EA, FCA, MAAA Senior Actuary \n \n(continued) 98 \n \n Actuarial Section \n \nPSERS April 18, 2019 \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nBoard of Trustees Georgia Public School Employees Retirement System Two Northside 75, Suite 300 Atlanta, GA 30318 \n \nAttn: Mr. James Potvin, Executive Director \nMembers of the Board: \nSection 47-4-60 of the law governing the operation of the Georgia Public School Employees Retirement System provides that the employer contribution shall be actuarially determined and approved by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2018. Based on a monthly benefit accrual rate of $15.25, which is effective July 1, 2018, the valuation indicates that annual employer contributions of $30,264,000 or $865.85 per active member for the fiscal year ending June 30, 2021 are sufficient to support the benefits of the System. \nSince the previous valuation, the monthly benefit rate has been increased from $15.00 to $15.25 per year of creditable service with an effective date of July 1, 2018. In addition, the results of the valuation reflect that the Board granted a 2% cost-of-living adjustment (COLA) on July 1, 2018 to certain retired members and beneficiaries rather than the 1.50% anticipated cost-of-living adjustments to retired members on July 1, 2018 and on January 1, 2019. \nEffective with the June 30, 2017 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the actual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of investment expenses. Since the actual rate of return for the year ending June 30, 2018 was greater than 7.40%, the assumed rate of return used in the current valuation was decreased from 7.40% to 7.30%. \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \n \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2018 session of the General Assembly. \nThe System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level as a dollar per active member. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a dollar per active member. Gains and losses are reflected in the total unfunded accrued liability which is being amortized as a level dollar per active member in accordance with the funding policy adopted by the Board. \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports. \nWe have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report: \n Summary of Actuarial Assumptions  Schedule of Active Members  Schedule of Funding Progress  Schedule of Retirees Added to and Removed from Rolls  Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \n \n(continued) 99 \n \n Actuarial Section \n \nThe System is currently being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is currently operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the System and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System. \n \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \nSincerely yours, \n \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n \nCathy Turcot Principal and Managing Director \n \nBen Mobley, EA, FCA, MAAA Senior Actuary \n \n100 \n \n Actuarial Section \n \nGJRS April 18, 2019 \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nBoard of Trustees Georgia Judicial Retirement System Two Northside 75, Suite 300 Atlanta, GA 30318 \n \nAttn: Mr. James Potvin, Executive Director \nMembers of the Board: \nSection 47-23-21 of the law governing the operation of the Georgia Judicial Retirement System provides that the actuary shall make annual valuations of the contingent assets and liabilities of the Retirement System on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2018. The report indicates that annual employer contributions at the rate of 8.38% of compensation for the fiscal year ending June 30, 2021 are sufficient to support the benefits of the System. \nThe results of the valuation reflect the two one-time payments to certain retirees and beneficiaries effective July 2018 and January 2019. \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2018 session of the General Assembly. Effective with the June 30, 2017 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the actual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of investment expenses. Since the actual rate of return for the year ending June 30, 2018 was greater than 7.40%, the assumed rate of return used in the current valuation was decreased from 7.40% to 7.30%. \n \nThe System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level as a percent of payroll. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a level percent of payroll. Gains and losses are reflected in the total unfunded accrued liability which is negative and being amortized as a level percent of payroll in accordance with the funding policy adopted by the Board. \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports. \nWe have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report: \n Summary of Actuarial Assumptions  Schedule of Active Members  Schedule of Funding Progress  Schedule of Retirees Added to and Removed from Rolls  Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \nThe System is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the \n \n(continued) 101 \n \n Actuarial Section \n \nbasis 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. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors \n \nas the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \nSincerely yours, \n \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n \nCathy Turcot Principal and Managing Director \n \nBen Mobley, EA, FCA, MAAA Senior Actuary \n \n102 \n \n Actuarial Section \n \nLRS April 18, 2019 \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nBoard of Trustees Legislative Retirement System of Georgia Two Northside 75, Suite 300 Atlanta, GA 30318 \n \nAttn: Mr. James Potvin, Executive Director \nMembers of the Board: \nSection 47-6-22 of the law governing the operation of the Georgia Legislative Retirement System provides that the actuary shall make periodic valuations of the contingent assets and liabilities of the Retirement System on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2018. The report indicates that no annual employer contributions for the fiscal year ending June 30, 2021 are required to support the benefits of the System. \nThe results of the valuation reflect that the Board did not grant the anticipated cost-of-living adjustments (COLAs) to retired members on July 1, 2018 and on January 1, 2019. In addition, the results of the valuation reflect the two one-time payments to certain retirees and beneficiaries effective July 2018 and January 2019. \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2018 session of the General Assembly. Effective with the June 30, 2017 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the actual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of investment expenses. Since the actual rate of return for the year ending June 30, 2018 was greater \n \nthan 7.40%, the assumed rate of return used in the current valuation was decreased from 7.40% to 7.30%. \nThe System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level as a dollar per active member. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a level dollar per active member. Gains and losses are reflected in the total unfunded accrued liability which is negative and being amortized as a level dollar per active member in accordance with the funding policy adopted by the Board. \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports. \nWe have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report: \n Summary of Actuarial Assumptions  Schedule of Active Members  Schedule of Funding Progress  Schedule of Retirees Added to and Removed from Rolls  Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \nThe System is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is \n \n(continued) 103 \n \n Actuarial Section \n \noperating 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. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System. \n \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \nSincerely yours, \n \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n \nCathy Turcot Principal and Managing Director \n \nBen Mobley, EA, FCA, MAAA Senior Actuary \n \n104 \n \n Actuarial Section \n \nGMPF April 18, 2019 \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nBoard of Trustees Georgia Military Pension Fund Two Northside 75, Suite 300 Atlanta, GA 30318 \n \nAttn: Mr. James Potvin, Executive Director \n \nMembers of the Board: \n \nSection 47-24-22 of the law governing the operation of the Georgia Military Pension Fund provides that the actuary shall make periodic valuations of the contingent assets and liabilities of the Pension Fund on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the Fund prepared as of June 30, 2018. The report indicates that annual employer contributions of $2,683,883 or $194.43 per active member for the fiscal year ending June 30, 2021 are sufficient to support the benefits of the Fund. \nEffective with the June 30, 2017 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the actual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of investment expenses. Since the actual rate of return for the year ending June 30, 2018 was greater than 7.40%, the assumed rate of return used in the current valuation was decreased from 7.40% to 7.30%. \nIn preparing the valuation, the actuary relied on data provided by the Fund. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the Fund enacted through the 2018 session of the General Assembly. \nThe Fund is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the Fund and to reasonable \n \nexpectations of anticipated experience under the Fund. The assumptions and methods used for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level as a dollar per active member. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a dollar per active member. Gains and losses are reflected in the total unfunded accrued liability which is being amortized as a level dollar per active member in accordance with the funding policy adopted by the Board. \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports. \nWe have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report: \n Summary of Actuarial Assumptions  Schedule of Active Members  Schedule of Funding Progress  Schedule of Retirees Added to and Removed from Rolls  Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \nThe Fund is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the Fund is operating on an actuarially sound basis. Assuming that contributions to the Fund are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the Fund may be safely anticipated. \n \n(continued) 105 \n \n Actuarial Section \n \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience is performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the Fund. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; \n \nchanges in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \nSincerely yours, \n \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n \nCathy Turcot Principal and Managing Director \n \nBen Mobley, EA, FCA, MAAA Senior Actuary \n \n106 \n \n Actuarial Section \n \nSEAD Post-Retirement (SEAD-OPEB) April 18, 2019 \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nBoard of Trustees Employees' Retirement System of Georgia Two Northside 75, Suite 300 Atlanta, GA 30318 \n \nAttn: Mr. James Potvin, Executive Director \nMembers of the Board: \nChapters 47-2 and 47-19 of the Code of Georgia which govern the operation of the Georgia Employees' Group Term Life Insurance Plan provide that the actuary shall make periodic valuations of the contingent assets and liabilities of the Insurance Plan on the basis of regular interest and the tables last adopted by the Board of Trustees. In this report, we have determined liabilities for life insurance benefits payable upon death after retirement (Post-Retirement). \nWe have determined the liabilities for life insurance benefits payable upon death after retirement. We have submitted the report giving the results of the valuation of the Plan prepared as of June 30, 2018. The report indicates, for post-retirement benefits, there is no employer annual required contribution for the fiscal year ending June 30, 2021. \nSince the previous valuation, the Board has amended the funding policy to change the long-term assumed rate of return assumption. Effective with the June 30, 2017 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the actual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of investment expenses. Since the actual rate of return for the year ending June 30, 2018 was greater than 7.40%, the assumed rate of return used in the current valuation was decreased from 7.40% to 7.30%. Gains and losses are reflected in the unfunded accrued liability. The actuarial assumptions used are in the aggregate reasonably related to the experience under the Plan and to reasonable expectations of anticipated experience under the Plan. In our opinion, the Plan is operating on an actuarially sound basis and the sufficiency of the funds to provide the benefits called for by the Plan may be safely anticipated assuming future actuarially determined contributions (ADC) are contributed when due. \n \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 74 and 75. The necessary disclosure information is provided in separate supplemental reports. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the Plan. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \n(continued) 107 \n \n Sincerely yours, \n \nActuarial Section \n \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n \nCathy Turcot Principal and Managing Director \n \nBen Mobley, EA, FCA, MAAA Senior Actuary \n \n108 \n \n Actuarial Section \nSummary of Plan Provisions \nERS  Please see Notes to Financial Statements, (2)(a), pages 30-31. PSERS  Please see Notes to Financial Statements, (2)(b), page 32. LRS  Please see Notes to Financial Statements, (2)(c), page 33. GJRS  Please see Notes to Financial Statements, (2)(d), pages 33-34. GMPF  Please see Notes to Financial Statements, (2)(e), pages 34-35. SEAD-OPEB  Please see Notes to Financial Statements, (2)(h), pages 36-37. \nThe following Boards are responsible for establishing and maintaining the funding policies of the various defined benefit pension plans administered by the System: \n Board of Trustees of the Employees' Retirement System: ERS, LRS, and GMPF  Board of Trustees of the Public School Employees Retirement System: PSERS  Board of Trustees of the Georgia Judicial Retirement System: GJRS \nThe following Board is responsible for establishing and maintaining the funding policy of the defined benefit post-employment life insurance plan administered by the System: \n Board of Directors of the State Employees' Assurance Department: SEAD-OPEB \nERS, PSERS, LRS, GJRS, and GMPF are all subject to the provisions of GASB Statement No. 67, Financial Reporting for Pension Plans, an amendment of GASB Statement No. 25 (GASB 67). All of the plans covered under GASB 67 use the Entry Age Normal actuarial cost method for both funding and financial reporting purposes. This continues a long-standing practice for all of those plans and provides a point of consistency between the funding provisions and the GASB 67 requirements. \nSEAD-OPEB is subject to the provisions of GASB 74. SEAD-OPEB uses the Entry Age Normal actuarial cost method for both funding and financial reporting purposes. \nFor all of the plans covered under GASB 67, the GASB 67 reports prepared as of June 30, 2019 were largely based on the data, assumptions, and results of the annual funding valuations as of June 30, 2018. The Total Pension Liability (TPL) for each plan, determined using the Entry Age Normal method, was then rolled forward to the June 30, 2019 measurement date. The Net Pension Liability for each plan is equal to the rolled forward TPL less the plan's net position as of June 30, 2019. \nFor the plan covered under GASB 74, the GASB 74 report prepared as of June 30, 2019 was largely based on the data, assumptions, and results of the annual funding valuation as of June 30, 2018. The Total OPEB Liability (TOL) for the plan, determined using the Entry Age Normal method, was then rolled forward to the June 30, 2019 measurement date. The Net OPEB Liability for the plan is equal to the rolled forward TOL less the plan's net position as of June 30, 2019. \nFor the funding valuations as of June 30, 2018, the Actuarial Value of Assets is calculated using a five-year smoothing methodology, whereby excesses and shortfalls of actual investment income over or under the expected investment return will be recognized over the succeeding five-year periods. \nFor the life insurance plan's funding valuation as of June 30, 2018, the Actuarial Value of Assets is equal to the Fair Value of Assets as of June 30, 2018. \n(continued) 109 \n \n Actuarial Section \nSummary of Plan Provisions \nFor the funding valuations, each plan covered under GASB 67 utilizes a 7.30% assumed rate of return and a 7.30% discount rate for the calculation of the respective plans' liabilities. The Single Equivalent Interest Rate required under GASB 67 has been determined to be 7.30% by the plans' actuaries. The plan covered under GASB 74 utilizes a 7.30% assumed rate of return and a 7.30% discount rate for the calculation of the plan's liabilities. The Single Equivalent Interest Rate required under GASB 74 has been determined to be 7.30% by the plan's actuaries. \n110 \n \n Summary of Actuarial Assumptions \n \nActuarial Section \n \nThe laws governing the Employees' Retirement System and the plans it administers require an actuary to perform an annual valuation of the soundness of the plans. In addition, the actuary must perform at least once every five years an actuarial investigation of the mortality, service, and compensation experience of the members and beneficiaries of the System. The latest valuation was performed as of June 30, 2018 based on actuarial assumptions approved by the Board during the last experience study on December 17, 2015. \nThe more pertinent facts and significant assumptions underlying the computations included in the June 30, 2018 reports are as follows: \n \nValuation Date Actuarial Cost Method \nAmortization Method \nAmortization Period \nActuarial Asset Valuation Method \nInvestment Rate of Return Inflation Rate Projected Salary Increases COLA \n \nERS \n \nPSERS \n \nGJRS \n \nJune 30, 2018 Entry age \n \nJune 30, 2018 Entry age \n \nJune 30, 2018 Entry age \n \nLevel dollar, closed Level dollar, closed \n \nLevel percent of pay, closed \n \nLRS \nJune 30, 2018 Entry age \nLevel dollar, open \n \nGMPF \nJune 30, 2018 Entry age \nLevel dollar, closed \n \n15.3 years \n \n20.4 years \n \n15.6 years \n \nInfinite \n \n15.6 years \n \nThe actuarial value of assets was based on the total fair value income of investments, with the excess or shortfall of actual investment income over or under the expected investment return smoothed over five years. One-fifth of the excess or shortfall is recognized each year for five years. \n \n7.30% 2.75% 3.25 to 7.00% None \n \n7.30% 2.75% \nn/a 1.50% Semi-annually \n \n7.30% 2.75% 4.50% None \n \n7.30% 2.75% \nn/a 3.00% Annually \n \n7.30% 2.75% \nn/a None \n \nValuation Date Actuarial Cost Method \nAmortization Method \nAmortization Period \nActuarial Asset Valuation Method \nInvestment Rate of Return Inflation Rate Projected Salary Increases \nERS GJRS LRS COLA \n \nSEAD-OPEB June 30, 2018 \nEntry age Level percent, open \nInfinite \nFair Value of Assets \n7.30% 2.75% \n3.25-7.00% 4.50% n/a None \n \n(continued) 111 \n \n Summary of Actuarial Assumptions \n \nActuarial Section \n \nRates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability) \n \nERS \nRepresentative values of the assumed annual rates of separation other than retirement for non-law enforcement officers are as follows. Special rates of separation apply to law enforcement officers. \n \nAnnual Rates of Annual Rates of \n \nDeath \n \nDisability \n \nAge Men Women Men Women \n \n20 .0320% .0177% .05% .02% \n \n25 .0349 .0192 \n \n.05 \n \n.02 \n \n30 .0412 .0245 \n \n.05 \n \n.02 \n \n35 .0717 .0441 \n \n.05 \n \n.02 \n \n40 .1001 .0655 \n \n.25 \n \n.10 \n \n45 .1399 .1043 \n \n.48 \n \n.25 \n \n50 .1983 .1555 \n \n.70 \n \n.45 \n \n55 \n \n.2810 .2228 \n \n1.05 \n \n.73 \n \n60 .4092 .3058 \n \n-- \n \n-- \n \n65 .5600 .4304 \n \n-- \n \n-- \n \nAnnual Rates of Withdrawal Years of Service \n \n0-4 \n \n5-9 \n \n10 \u0026 over \n \nAge \n \nMen Women Men Women Men Women \n \n20 \n \n35.00% 30.00% \n \n--% \n \n--% \n \n--% \n \n--% \n \n25 \n \n27.50 25.00 15.00 17.50 \n \n-- \n \n-- \n \n30 \n \n23.00 21.50 11.50 12.50 \n \n7.50 \n \n8.25 \n \n35 \n \n21.50 19.50 10.00 10.50 \n \n6.00 \n \n6.00 \n \n40 \n \n19.50 18.25 \n \n9.50 \n \n9.50 \n \n4.75 \n \n5.00 \n \n45 \n \n18.60 16.50 \n \n9.00 \n \n8.00 \n \n4.00 \n \n4.00 \n \n50 \n \n16.60 15.00 \n \n7.25 \n \n7.25 \n \n4.25 \n \n4.25 \n \n55 \n \n14.50 14.00 \n \n7.00 \n \n7.00 \n \n4.75 \n \n4.50 \n \n60 \n \n14.00 14.50 \n \n6.00 \n \n6.25 \n \n-- \n \n-- \n \n65 \n \n15.00 17.00 10.00 11.00 \n \n-- \n \n-- \n \n(continued) 112 \n \n Summary of Actuarial Assumptions \n \nActuarial Section \n \nRates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability) \n \nPSERS \n \nAnnual Rates of Annual \n \nDeath \n \nRates of \n \nDisability \n \nAge Men Women Both \n \n20 .0320% .0177% \n \n--% \n \n25 .0349 .0192 \n \n-- \n \n30 .0412 .0245 \n \n-- \n \n35 .0717 .0441 \n \n.0025 \n \n40 .1001 .0655 \n \n.0110 \n \n45 .1399 .1043 \n \n.0370 \n \n50 .1983 .1555 \n \n.0865 \n \n55 .2810 .2228 \n \n.2250 \n \n60 .4092 .3058 \n \n.3500 \n \n65 .5600 .4304 \n \n-- \n \nAnnual Rates of Withdrawal Years of Service \n \n0-4 \n \n5-9 \n \n10 \u0026 over \n \nAge Men Women Men Women Men Women \n \n20 \n \n37.00% 32.00% \n \n--% \n \n--% \n \n--% \n \n--% \n \n25 \n \n28.00 28.00 17.00 18.00 \n \n-- \n \n-- \n \n30 \n \n25.00 23.00 15.00 15.00 12.00 10.00 \n \n35 \n \n23.00 19.00 13.00 13.00 \n \n9.00 10.00 \n \n40 \n \n21.00 17.00 12.00 12.00 \n \n7.50 \n \n8.00 \n \n45 \n \n19.00 \n \n15.50 \n \n11.00 \n \n10.00 \n \n6.50 \n \n7.00 \n \n50 \n \n17.00 14.00 \n \n9.00 \n \n8.50 \n \n6.50 \n \n6.00 \n \n55 \n \n15.00 12.00 \n \n9.00 \n \n8.00 \n \n6.00 \n \n5.50 \n \n60 \n \n12.00 11.00 \n \n7.50 \n \n7.50 \n \n-- \n \n-- \n \n(continued) 113 \n \n Summary of Actuarial Assumptions \n \nActuarial Section \n \nRates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability) \n \nGJRS \n \nAnnual Rates of \n \nWithdrawal \n \nDeath \n \nDisability \n \nAge \n \nBoth \n \nMen Women Both \n \n20 \n \n4.0% \n \n.032% .018% \n \n.03% \n \n25 \n \n4.0 \n \n.035 .019 \n \n.03 \n \n30 \n \n4.0 \n \n.041 .025 \n \n.05 \n \n35 \n \n4.0 \n \n.072 .044 \n \n.08 \n \n40 \n \n6.0 \n \n.100 .066 \n \n.10 \n \n45 \n \n4.0 \n \n.140 .104 \n \n.18 \n \n50 \n \n3.0 \n \n.198 .156 \n \n.25 \n \n55 \n \n2.5 \n \n.281 .223 \n \n.45 \n \n60 \n \n2.5 \n \n.409 .306 \n \n.73 \n \n65 \n \n2.5 \n \n.560 .430 \n \n1.18 \n \nLRS \n \nAnnual Rates of \n \nWithdrawal \n \nDeath \n \nAge \n \nBoth \n \nMen Women \n \n20 \n \n8.0% \n \n.032% .018% \n \n25 \n \n8.0 \n \n.035 .019 \n \n30 \n \n8.0 \n \n.041 .025 \n \n35 \n \n8.0 \n \n.072 .044 \n \n40 \n \n8.0 \n \n.100 .066 \n \n45 \n \n8.5 \n \n.140 .104 \n \n50 \n \n8.5 \n \n.198 .156 \n \n55 \n \n9.0 \n \n.281 .223 \n \n60 \n \n9.0 \n \n.409 .306 \n \n65 \n \n9.0 \n \n.560 .430 \n \nGMPF \n \nRates of Withdrawal from Active Service \n \nService 2 or Less 3-7 8-9 10-14 15-19 20 or more \n \nRates 13.0% 17.5 14.0 13.5 \n8.5 14.5 \n \nAge \n \nRates of Death \n \nMen \n \nWomen \n \n25 \n \n.0349% .0192% \n \n30 \n \n.0412 \n \n.0245 \n \n35 \n \n.0717 \n \n.0441 \n \n40 \n \n.1001 \n \n.0655 \n \n45 \n \n.1399 \n \n.1043 \n \n50 \n \n.1983 \n \n.1555 \n \n55 \n \n.2810 \n \n.2228 \n \n60 \n \n.4092 \n \n.3058 \n \n(continued) 114 \n \n Summary of Actuarial Assumptions \n \nActuarial Section \n \nRates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability) \n \nSEAD-OPEB \n \nAll Groups \n \nERS \n \nGJRS \n \nAnnual Rates of Death \n \nAnnual Rates of Disability \n \nAnnual Rates of Disability \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nBoth \n \n20 \n \n.0320% .0177% \n \n.05% \n \n.02% \n \n25 \n \n.0349 \n \n.0192 \n \n.05 \n \n.02 \n \n30 \n \n.0412 \n \n.0245 \n \n.05 \n \n.02 \n \n35 \n \n.0717 \n \n.0441 \n \n.05 \n \n.02 \n \n40 \n \n.1001 \n \n.0655 \n \n.25 \n \n.10 \n \n45 \n \n.1399 \n \n.1043 \n \n.48 \n \n.25 \n \n50 \n \n.1983 \n \n.1555 \n \n.70 \n \n.45 \n \n55 \n \n.2810 \n \n.2228 \n \n1.05 \n \n.73 \n \n60 \n \n.4092 \n \n.3058 \n \n-- \n \n-- \n \n65 \n \n.5600 \n \n.4304 \n \n-- \n \n-- \n \n.03% .03 .05 .08 .10 .18 .25 .45 .73 1.18 \n \nERS \n \nLRS \n \nGJRS \n \nAnnual Rates of Withdrawal Years of Service \n \nAnnual Rates Annual Rates of Withdrawal of Withdrawal \n \n0-4 \n \n5-9 \n \n10 \u0026 over \n \nAge Men Women Men Women Men Women \n \n20 \n \n35.00% 30.00% \n \n--% \n \n--% \n \n--% \n \n--% \n \n25 \n \n27.50 \n \n25.00 \n \n15.00 \n \n17.50 \n \n-- \n \n-- \n \n30 \n \n23.00 \n \n21.50 \n \n11.50 \n \n12.50 \n \n7.50 \n \n8.25 \n \n35 \n \n21.50 \n \n19.50 \n \n10.00 \n \n10.50 \n \n6.00 \n \n6.00 \n \n40 \n \n19.50 \n \n18.25 \n \n9.50 \n \n9.50 \n \n4.75 \n \n5.00 \n \n45 \n \n18.60 \n \n16.50 \n \n9.00 \n \n8.00 \n \n4.00 \n \n4.00 \n \n50 \n \n16.60 \n \n15.00 \n \n7.25 \n \n7.25 \n \n4.25 \n \n4.25 \n \n55 \n \n14.50 \n \n14.00 \n \n7.00 \n \n7.00 \n \n4.75 \n \n4.50 \n \n60 \n \n14.00 \n \n14.50 \n \n6.00 \n \n6.25 \n \n-- \n \n-- \n \n65 \n \n15.00 \n \n17.00 \n \n10.00 \n \n11.00 \n \n-- \n \n-- \n \nBoth 8.00% 8.00 8.00 8.00 8.00 8.50 8.50 9.00 9.00 9.00 \n \nBoth 4.00% 4.00 4.00 4.00 6.00 4.00 3.00 2.50 2.50 2.50 \n \n(continued) 115 \n \n Summary of Actuarial Assumptions \nAnnual Rates of Retirement ERS \n \nActuarial Section \n \nOld Plan \n \nEarly Retirement Age 60 for 30 years \n \n34 years \n \nMore than 34 years \n \nAge \n \nMen Women Men Women Men Women Men Women \n \n50 \n \n2.0% \n \n2.0% \n \n7.5% \n \n6.0% 100.0% 100.0% 90.0% 100.0% \n \n52 \n \n2.0 \n \n2.0 \n \n7.5 \n \n6.0 \n \n100.0 \n \n100.0 \n \n90.0 \n \n100.0 \n \n55 \n \n3.0 \n \n3.5 \n \n7.5 \n \n10.0 \n \n100.0 \n \n100.0 \n \n75.0 \n \n90.0 \n \n57 \n \n3.5 \n \n5.0 \n \n10.5 \n \n10.0 \n \n100.0 \n \n100.0 \n \n70.0 \n \n70.0 \n \n60 \n \n-- \n \n-- \n \n15.0 \n \n20.0 \n \n97.5 \n \n95.0 \n \n40.0 \n \n55.0 \n \n62 \n \n-- \n \n-- \n \n32.0 \n \n40.0 \n \n97.5 \n \n95.0 \n \n40.0 \n \n65.0 \n \n65 \n \n-- \n \n-- \n \n35.0 \n \n40.0 \n \n35.0 \n \n40.0 \n \n35.0 \n \n40.0 \n \n67 \n \n-- \n \n-- \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n70 \n \n-- \n \n-- \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n75 \n \n-- \n \n-- \n \n100.0 \n \n100.0 \n \n100.0 \n \n100.0 \n \n100.0 \n \n100.0 \n \nNew Plan and GSEPS \n \nEarly Retirement \n \nNormal Retirement \n \nAge \n \nMen \n \nWomen \n \nMen* \n \nWomen** \n \n50 \n \n7.0% \n \n4.5% \n \n70.0% \n \n50.0% \n \n52 \n \n7.0 \n \n4.5 \n \n70.0 \n \n45.0 \n \n55 \n \n7.0 \n \n6.5 \n \n60.0 \n \n50.0 \n \n57 \n \n8.0 \n \n8.0 \n \n50.0 \n \n40.0 \n \n60 \n \n-- \n \n-- \n \n25.0 \n \n30.0 \n \n62 \n \n-- \n \n-- \n \n40.0 \n \n40.0 \n \n65 \n \n-- \n \n-- \n \n32.0 \n \n35.0 \n \n67 \n \n-- \n \n-- \n \n32.0 \n \n32.0 \n \n70 \n \n-- \n \n-- \n \n30.0 \n \n30.0 \n \n75 \n \n-- \n \n-- \n \n100.0 \n \n100.0 \n \n*An additional 10% of active male New Plan and GSEPS members less than age 55 and 20% between ages 55-59, inclusive, are expected to retire in the year in which they attain 30 years of service. \n**An additional 20% of active female New Plan and GSEPS members less than age 60 are expected to retire in the year in which they attain 30 years of service. \n \n(continued) 116 \n \n Summary of Actuarial Assumptions \nAnnual Rates of Retirement \n \nActuarial Section \n \nPSERS GJRS LRS GMPF \n \nAge Annual Rate of Retirement \n \nAge \n \nAnnual Rate of Retirement \n \n60 \n \n13.0% \n \n68 \n \n23.0% \n \n61 \n \n13.0 \n \n69 \n \n26.0 \n \n62 \n \n22.0 \n \n70 \n \n27.0 \n \n63 \n \n17.5 \n \n71 \n \n27.0 \n \n64 \n \n17.0 \n \n72 \n \n27.0 \n \n65 \n \n28.0 \n \n73 \n \n27.0 \n \n66 \n \n27.0 \n \n74 \n \n27.0 \n \n67 \n \n23.0 \n \n75 \u0026 over \n \n100.0 \n \nAge \n60 61 62 63-64 65-69 70-74 75 \n \nAnnual Rate of Retirement \n15.0% 10.0 12.0 10.0 15.0 25.0 100.0 \n \nAge Annual Rate of Retirement \n \n60 \n \n10.0% \n \n61 \n \n10.0 \n \n62 \n \n15.0 \n \n63 \n \n10.0 \n \n64 \n \n10.0 \n \n65 \n \n12.0 \n \nAge 66 67 68 69 70-74 75 \n \nAnnual Rate of Retirement 12.0% 15.0 12.0 12.0 20.0 \n100.0 \n \nAge \n60 61 62 63 64 65 \u0026 over \n \nAnnual Rate of Retirement \n75.0% 60.0 70.0 60.0 60.0 100.0 \n \n(continued) 117 \n \n Summary of Actuarial Assumptions \nAnnual Rates of Retirement \n \nActuarial Section \n \nSEAD-OPEB ERS Members \nAge 50 52 55 57 60 62 65 67 70 75 \n \nEarly Retirement \n \nMen \n2.0% 2.0 3.0 3.5 -- -- -- -- -- -- \n \nWomen \n2.0% 2.0 3.5 5.0 -- -- -- -- -- -- \n \nOld Plan \n \nAge 60 or 30 years \n \nMen \n7.5% 7.5 7.5 10.5 15.0 32.0 35.0 35.0 35.0 100.0 \n \nWomen \n6.0% 6.0 10.0 10.0 20.0 40.0 40.0 35.0 35.0 100.0 \n \n34 years \n \nMen \n100.0% 100.0 100.0 100.0 \n97.5 97.5 35.0 35.0 35.0 100.0 \n \nWomen \n100.0% 100.0 100.0 100.0 \n95.0 95.0 40.0 35.0 35.0 100.0 \n \nMore than 34 years \n \nMen \n90.0% 90.0 75.0 70.0 40.0 40.0 35.0 35.0 35.0 100.0 \n \nWomen \n100.0% 100.0 \n90.0 70.0 55.0 65.0 40.0 35.0 35.0 100.0 \n \nNew Plan and GSEPS \n \nEarly Retirement \n \nNormal Retirement \n \nAge \n \nMen \n \nWomen \n \nMen* \n \nWomen** \n \n50 \n \n7.0% \n \n4.5% \n \n70.0% \n \n50.0% \n \n52 \n \n7.0 \n \n4.5 \n \n70.0 \n \n45.0 \n \n55 \n \n7.0 \n \n6.5 \n \n60.0 \n \n50.0 \n \n57 \n \n8.0 \n \n8.0 \n \n50.0 \n \n40.0 \n \n60 \n \n-- \n \n-- \n \n25.0 \n \n30.0 \n \n62 \n \n-- \n \n-- \n \n40.0 \n \n40.0 \n \n65 \n \n-- \n \n-- \n \n32.0 \n \n35.0 \n \n67 \n \n-- \n \n-- \n \n32.0 \n \n32.0 \n \n70 \n \n-- \n \n-- \n \n30.0 \n \n30.0 \n \n75 \n \n-- \n \n-- \n \n100.0 \n \n100.0 \n \n*An additional 10% of active male New Plan and GSEPS members less than age 55 and 20% between ages 55-59, inclusive, are expected to retire in the year in which they attain 30 years of service. \n**An additional 20% of active female New Plan and GSEPS members less than age 60 are expected to retire in the year in which they attain 30 years of service. \nLRS Members \n \nAge \n60 61 62 63-64 65-66 \n \nAnnual Rate of Retirement \n10.0% 10.0 15.0 10.0 12.0 \n \nAge \n67 68-69 70-74 \n75 \n \nAnnual Rate of Retirement \n15.0% 12.0 20.0 100.0 \n \n(continued) 118 \n \n Summary of Actuarial Assumptions \nAnnual Rates of Retirement \nSEAD-OPEB GJRS Members \n \nActuarial Section \n \nAge \n60 61 62 63-64 65-66 67 68-69 70-74 75 \n \nAnnual Rate of Retirement \n15.0% 10.0 12.0 10.0 15.0 15.0 15.0 25.0 100.0 \n \n119 \n \n Summary of Actuarial Assumptions \nAnnual Rates of Death After Retirement \n \nActuarial Section \n \nFor all plans except PSERS, the RP-2000 Combined Mortality Table (projected to 2025 with projection scale BB and set forward two years for both males and females) is used for the period after retirement and for dependent beneficiaries. The RP-2000 Disabled Mortality Table (projected to 2025 with projection scale BB and and set back seven years for males and set forward three years for females) is used for the period after disability retirement. For PSERS, the RP-2000 BlueCollar Mortality Table (projected to 2025 with projection scale BB and set forward three years for males and two years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table (projected to 2025 with projection scale BB and set forward five years for both males and females) is used for the period after disability retirement. For all plans, there is a margin for future mortality improvement in the tables. \n \nERS \n \nAge \n \nMen \n \nWomen \n \nAge \n \nMen \n \nWomen \n \n40 \n \n0.1127% 0.0790% \n \n65 \n \n1.1300% 0.8994% \n \n45 \n \n0.1609 \n \n0.1230 \n \n70 \n \n1.8697 \n \n1.5281 \n \n50 \n \n0.2474 \n \n0.1872 \n \n75 \n \n3.2147 \n \n2.5220 \n \n55 \n \n0.4246 \n \n0.2918 \n \n80 \n \n5.5160 \n \n4.1628 \n \n60 \n \n0.6985 \n \n0.4923 \n \n85 \n \n9.5631 \n \n7.1239 \n \nPSERS \n \nAge \n \nMen \n \nWomen \n \nAge \n \nMen \n \nWomen \n \n40 \n \n0.1476% 0.0995% \n \n65 \n \n1.4859% 0.9774% \n \n45 \n \n0.1974 \n \n0.1484 \n \n70 \n \n2.4262 1.7054 \n \n50 \n \n0.3057 \n \n0.2084 \n \n75 \n \n3.9830 2.7288 \n \n55 \n \n0.5644 \n \n0.2844 \n \n80 \n \n6.5238 4.4542 \n \n60 \n \n0.9575 \n \n0.5014 \n \n85 \n \n10.9551 7.5727 \n \nGJRS \n \nAge \n \nMen \n \nWomen \n \nAge \n \nMen \n \nWomen \n \n40 \n \n0.1127% 0.0790% \n \n65 \n \n1.1300% 0.8994% \n \n45 \n \n0.1609 \n \n0.1230 \n \n70 \n \n1.8697 \n \n1.5281 \n \n50 \n \n0.2474 \n \n0.1872 \n \n75 \n \n3.2147 \n \n2.5220 \n \n55 \n \n0.4246 \n \n0.2918 \n \n80 \n \n5.5160 \n \n4.1628 \n \n60 \n \n0.6985 \n \n0.4923 \n \n85 \n \n9.5631 \n \n7.1239 \n \n(continued) 120 \n \n Summary of Actuarial Assumptions \nAnnual Rates of Death After Retirement \n \nLRS GMPF \n \nAge \n \nMen \n \nWomen \n \nAge \n \n40 \n \n0.1127% 0.0790% \n \n65 \n \n45 \n \n0.1609 \n \n0.1230 \n \n70 \n \n50 \n \n0.2474 \n \n0.1872 \n \n75 \n \n55 \n \n0.4246 \n \n0.2918 \n \n80 \n \n60 \n \n0.6985 \n \n0.4923 \n \n85 \n \nSEAD-OPEB \n \nAge \n \nMen \n \nWomen \n \nAge \n \n40 \n \n0.1127% 0.0790% \n \n65 \n \n45 \n \n0.1609 \n \n0.1230 \n \n70 \n \n50 \n \n0.2474 \n \n0.1872 \n \n75 \n \n55 \n \n0.4246 \n \n0.2918 \n \n80 \n \n60 \n \n0.6985 \n \n0.4923 \n \n85 \n \nAge \n \nMen \n \nWomen \n \nAge \n \n40 \n \n0.1127% 0.0790% \n \n65 \n \n45 \n \n0.1609 \n \n0.1230 \n \n70 \n \n50 \n \n0.2474 \n \n0.1872 \n \n75 \n \n55 \n \n0.4246 \n \n0.2918 \n \n80 \n \n60 \n \n0.6985 \n \n0.4923 \n \n85 \n \nActuarial Section \n \nMen \n1.1300% 1.8697 3.2147 5.5160 9.5631 \n \nWomen \n0.8994% 1.5281 2.5220 4.1628 7.1239 \n \nMen \n1.1300% 1.8697 3.2147 5.5160 9.5631 \n \nWomen \n0.8994% 1.5281 2.5220 4.1628 7.1239 \n \nMen \n1.1300% 1.8697 3.2147 5.5160 9.5631 \n \nWomen \n0.8994% 1.5281 2.5220 4.1628 7.1239 \n \n121 \n \n Active Members \n \nActuarial Section \n \nERS \n \nYear 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nActive Members 71,272 68,566 66,081 63,942 61,550 60,486 60,416 59,766 60,906 60,405 \n \nAnnual Payroll (in thousands) $ 2,674,155 \n2,571,042 2,486,780 2,414,884 2,335,773 2,315,625 2,352,920 2,384,358 2,546,492 2,634,129 \n \nAverage Pay $ 37,520 \n37,497 37,632 37,767 37,949 38,284 38,945 39,895 41,810 43,608 \n \nChange 0.6% (0.1) 0.4 0.4 0.5 0.9 1.7 2.4 4.8 4.3 \n \nPSERS PSERS is not a compensation based plan. \n \nYear \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nActive Members \n40,581 39,962 39,249 38,654 37,361 36,096 35,477 34,866 35,509 34,953 \n \nGJRS \n \nYear 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nActive Members 502 495 507 503 506 513 516 526 527 527 \n \nAnnual Payroll (in thousands) \n \n$ \n \n52,083 \n \n51,293 \n \n52,331 \n \n51,898 \n \n52,807 \n \n53,628 \n \n54,272 \n \n57,401 \n \n59,695 \n \n60,572 \n \nAverage Pay $ 103,751 \n103,622 103,216 103,177 104,362 104,539 105,178 109,128 113,273 114,937 \n \nChange (2.1)% (0.1) (0.4) -- 1.1 0.2 0.6 3.8 3.8 1.5 \n \n(continued) 122 \n \n Active Members \n \nActuarial Section \n \nLRS LRS is not a compensation based plan. \nGMPF GMPF is not a compensation based plan. \n \nYear 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \nYear 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nActive Members 218 216 218 220 223 222 218 224 222 222 \nActive Members 12,019 13,032 13,776 13,526 13,573 13,469 13,754 13,850 13,037 13,804 \n \nSEAD-OPEB \n \nYear \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nActive Members \n69,745 62,305 55,516 49,261 43,512 39,101 35,189 32,076 29,024 26,224 \n \nNote: Payroll data on page 122 for fiscal year 2018 will not equal that which is presented in the Financial section in the Schedules of Employers' and Nonemployers' Contributions on pages 68-69. Valuation data at that time was a snapshot of the valuation date, annualized for new hires, but does not include those who terminated during the year. \n \n123 \n \n Member and Employer Contribution Rates \n \nActuarial Section \n \nERS \n \nYear \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nEmployer Rates \n \nMember \n \nOld Plan* New Plan \n \n1.25% 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 \n \n10.41% 10.41 11.63 14.90 18.46 21.96 24.72 24.69 24.69 24.66 \n \n10.41% 10.41 11.63 14.90 18.46 21.96 24.72 24.69 24.69 24.66 \n \nGSEPS \n6.54% 6.54 7.42 11.54 15.18 18.87 21.69 21.69 21.66 21.66 \n \n* Old Plan rate includes an employer pick-up of employee contributions. \n \nPSERS \n \nYear \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nPre 7/1/12 Member \n$ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year \n \nPost 7/1/12 Member \n \nEmployer \n \nn/a n/a n/a n/a n/a $ 90 per year $ 90 per year $ 90 per year $ 90 per year $ 90 per year \n \n$ 5,529,000 7,509,000 \n15,884,000 24,829,000 27,160,000 28,461,000 28,580,000 26,277,000 29,276,000 30,263,000 \n \nGJRS \n \nYear \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nMember \n7.50% 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 \n124 \n \nEmployer \n3.85% 3.85 3.90 3.90 4.23 6.98 12.19 10.48 7.17 7.83 \n \n(continued) \n \n Member and Employer Contribution Rates \n \nActuarial Section \n \nLRS \n \nYear \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nMember \n8.50% 8.50 8.50 8.50 8.50 8.50 8.50 8.50 8.50 8.50 \n \nEmployer \n$ 75,000 75,000 75,000 \n128,000 45,000 -- -- -- -- -- \n \nGMPF \n \nYear \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nMember \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n \nEmployer \n$ 1,434,000 1,282,000 1,521,000 1,703,000 1,892,000 1,893,369 1,989,530 2,017,875 2,377,312 2,537,272 \n \nSEAD-OPEB \n \nYear \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nMember - Old Plan \n0.45% 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45 \n \nMember - New Plan, LRS, GJRS \n0.23% 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.23 \n \nEmployer \n--% -- 0.61 0.27 -- -- -- -- -- -- \n \n125 \n \n Schedules of Funding Progress - Defined Benefit Plans \n(in thousands) \n \nEmployees' Retirement System Public School Employees Retirement System1 Legislative Retirement System Georgia Judicial Retirement System \n \nActuarial Valuation \nDate \n6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 \n6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 \n6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 \n6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 \n \nActuarial Value of Plan Assets \n(a) \n \n$ \n \n13,613,606 \n \n13,046,193 \n \n12,667,577 \n \n12,260,595 \n \n12,129,804 \n \n12,376,120 \n \n12,675,649 \n \n12,854,518 \n \n13,088,185 \n \n13,412,046 \n \n769,618 737,406 719,601 710,915 727,268 765,450 805,277 834,554 865,786 905,046 \n \n30,303 29,581 29,278 28,990 29,481 30,538 31,635 32,171 32,913 33,871 \n \n317,624 320,050 327,483 335,225 351,889 373,560 396,399 418,412 439,828 461,787 \n \nActuarial Accrued Liability (AAL) Entry-Age \n(b) \n$ 15,878,022 16,295,352 16,656,905 16,777,922 16,982,449 16,991,963 17,099,527 17,199,688 17,514,898 17,812,441 \n823,232 875,396 885,927 895,324 910,256 924,365 967,409 988,883 1,035,935 1,081,184 \n23,523 25,003 25,245 24,966 24,904 24,913 25,690 25,533 25,674 25,905 \n282,474 281,496 290,486 308,862 335,792 343,428 350,298 376,740 407,607 424,724 \n \nUnfunded AAL/ (Funded Excess) \n(b-a) \n \n$ \n \n2,264,416 \n \n3,249,159 \n \n3,989,348 \n \n4,517,327 \n \n4,852,645 \n \n4,615,843 \n \n4,423,878 \n \n4,345,170 \n \n4,426,713 \n \n4,400,395 \n \n53,614 137,990 166,326 184,409 182,988 158,915 162,132 154,329 170,149 176,138 \n \n(6,780) (4,578) (4,033) (4,024) (4,577) (5,624) (5,945) (6,638) (7,239) (7,966) \n \n(35,150) (38,554) (36,997) (26,363) (16,097) (30,132) (46,101) (41,672) (32,221) (37,063) \n \nActuarial Section \n \nFunded Ratio (a/b) \n \n85.7% \n \n$ \n \n80.1 \n \n76.0 \n \n73.1 \n \n71.4 \n \n72.8 \n \n74.1 \n \n74.7 \n \n74.7 \n \n75.3 \n \n93.5 84.2 81.2 79.4 79.9 82.8 83.2 84.4 83.6 83.7 \n \n128.8 118.3 116.0 116.1 118.4 122.6 123.1 126.0 128.2 130.7 \n \n112.4 113.7 112.7 108.5 104.8 108.8 113.2 111.1 107.9 108.7 \n \nAnnual Covered Payroll \n(c) \n2,674,155 2,571,042 2,486,780 2,414,884 2,335,773 2,315,625 2,352,920 2,384,358 2,546,492 2,634,129 \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n3,780 3,745 3,780 3,815 3,867 3,850 3,764 3,875 3,830 3,844 \n52,083 51,293 52,331 51,898 52,807 53,628 54,272 57,401 59,695 60,572 \n \nUnfunded AAL/ (Funded Excess) as Percentage of Covered Payroll \n[(b-a)/c] \n84.7% 126.4 160.4 187.1 207.8 199.3 188.0 182.2 173.8 167.1 \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n(179.4) (122.2) (106.7) (105.5) (118.4 ) (146.1) (157.9) (171.3) (189.0) (207.2) \n(67.5) (75.2) (70.7) (50.8) (30.5) (56.2) (84.9) (72.6) (54.0) (61.2) \n \n(continued) 126 \n \n Schedules of Funding Progress - Defined Benefit Plans \n(in thousands) \n \nActuarial Section \n \nGeorgia Military Pension Fund2 \n \nActuarial Valuation \nDate \n6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 \n \nActuarial Value of Plan Assets \n(a) \n \n$ \n \n6,413 \n \n7,558 \n \n8,702 \n \n10,087 \n \n12,131 \n \n14,264 \n \n16,446 \n \n18,414 \n \n20,604 \n \n23,362 \n \nActuarial Accrued Liability (AAL) Entry-Age \n(b) \n \n$ \n \n21,021 \n \n23,773 \n \n26,767 \n \n28,231 \n \n30,056 \n \n31,815 \n \n35,213 \n \n38,211 \n \n40,731 \n \n43,622 \n \nUnfunded AAL/ (Funded Excess) \n(b-a) \n \n$ \n \n14,608 \n \n16,215 \n \n18,065 \n \n18,144 \n \n17,925 \n \n17,551 \n \n18,767 \n \n19,797 \n \n20,127 \n \n20,260 \n \nFunded Ratio (a/b) \n30.5% 31.8 32.5 35.7 40.4 44.8 46.7 48.2 50.6 53.6 \n \nAnnual Covered Payroll \n(c) \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n \nUnfunded AAL/ (Funded Excess) as Percentage of Covered Payroll \n[(b-a)/c] \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n \nThis data, except for annual covered payroll, was provided by the System's actuary. \n No statistics regarding covered payroll are available. Contributions are not based on members' salaries, but are simply $4.00 per month, per member for nine months each fiscal year if hired prior to July 1, 2012 and $10 per month, per member for nine months if hired after July 1, 2012.  No statistics regarding covered payroll are available. Active and inactive plan member information is maintained by the Georgia Department of Defense. \nNote: Payroll data on page 122 for fiscal year 2018 will not equal that which is presented in the Financial section in the Schedules of Employers' and Nonemployers' Contributions on pages 68-69. Valuation data at that time was a snapshot of the valuation date, annualized for new hires, but does not include those who terminated during the year. \n \n127 \n \n Actuarial Section \nSchedule of Retirees Added to and Removed from Rolls \n \nERS \n \nAdded to Rolls \n \nRemoved from Rolls Roll End of Year \n \nYear Ended 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nNumber 2,444 2,665 2,797 2,956 3,664 2,440 2,656 2,572 2,630 2,612 \n \nAnnual Allowances (in thousands) \n$ 85,329 70,383 69,031 71,464 88,855 51,178 54,003 51,031 45,833 50,005 \n \nNumber 1,055 1,051 1,170 1,305 1,176 1,059 1,350 1,342 1,420 1,422 \n \nAnnual Allowances (in thousands) \n$ 20,194 22,413 25,347 27,696 26,334 22,997 30,927 30,724 32,372 33,530 \n \nNumber 36,968 38,582 40,209 41,860 44,348 45,729 47,035 48,265 49,475 50,665 \n \nAnnual Allowances (in thousands) \n$ 1,062,758 1,110,728 1,154,412 1,198,180 1,260,701 1,288,882 1,311,958 1,332,265 1,345,726 1,362,201 \n \n% Increase in Annual Allowance \n6.5% 4.5 3.9 3.8 5.2 2.2 1.8 1.5 1.0 1.2 \n \nAverage Annual Allowances \n$ 28,748 28,789 28,710 28,624 28,427 28,185 27,893 27,603 27,200 26,886 \n \nPSERS \n \nYear Ended 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nAdded to Rolls \n \nRemoved from Rolls Roll End of Year \n \nNumber 886 \n1,001 1,174 1,133 1,298 1,345 1,247 1,363 1,253 1,258 \n \nAnnual Allowances (in thousands) \n \n$ \n \n5,290 \n \n4,494 \n \n3,168 \n \n3,192 \n \n3,803 \n \n3,749 \n \n3,482 \n \n3,927 \n \n4,322 \n \n5,436 \n \nNumber 575 642 731 684 650 647 690 763 756 885 \n \nAnnual Allowances (in thousands) \n$ 2,260 2,666 3,072 2,834 2,738 2,604 2,679 2,890 2,927 3,354 \n \nNumber 13,798 14,157 14,600 15,049 15,697 16,395 16,952 17,552 18,049 18,422 \n \nAnnual Allowances (in thousands) \n$ 51,835 53,663 53,759 54,117 55,182 56,327 57,130 58,167 59,562 61,644 \n \n% Increase in Annual Allowance \n6.2% 3.5 0.2 0.7 2.0 2.1 1.4 1.8 2.4 3.5 \n \nAverage Annual Allowances \n \n$ \n \n3,757 \n \n3,791 \n \n3,682 \n \n3,596 \n \n3,515 \n \n3,436 \n \n3,370 \n \n3,314 \n \n3,300 \n \n3,346 \n \nGJRS \n \nAdded to Rolls \n \nRemoved from Rolls \n \nRoll End of Year \n \nYear Ended 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nNumber 29 16 15 22 42 23 21 13 62 23 \n \nAnnual Allowances (in thousands) \n$ 2,238 933 \n1,168 1,732 2,763 1,175 1,416 \n919 5,304 1,950 \n \nNumber 6 10 2 8 13 9 11 5 10 12 \n \nAnnual Allowances (in thousands) \n$ 191 508 105 405 629 326 561 269 771 558 \n \nNumber 201 207 220 234 263 277 287 295 347 358 \n \nAnnual Allowances (in thousands) \n$ 12,012 12,437 13,500 14,827 16,961 17,810 18,665 19,315 23,848 25,240 \n \n% Increase in Annual Allowance \n20.5% 3.5 8.5 9.8 \n14.4 5.0 4.8 3.5 \n23.5 5.8 \n \nAverage Annual Allowances \n$ 59,761 60,082 61,364 63,363 64,490 64,296 65,035 65,475 68,726 70,503 \n \n(continued) 128 \n \n Actuarial Section \nSchedule of Retirees Added to and Removed from Rolls \n \nLRS \n \nAdded to Rolls \n \nRemoved from Rolls \n \nRoll End of Year \n \nYear Ended 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nNumber 10 10 18 10 32 6 13 9 13 11 \n \nAnnual Allowances (in thousands) \n \n$ \n \n117 \n \n106 \n \n104 \n \n66 \n \n200 \n \n30 \n \n87 \n \n58 \n \n80 \n \n57 \n \nNumber 7 3 \n10 11 15 \n7 12 13 \n6 7 \n \nAnnual Allowances (in thousands) \n \n$ \n \n54 \n \n36 \n \n86 \n \n82 \n \n140 \n \n61 \n \n112 \n \n111 \n \n74 \n \n56 \n \nNumber 229 236 244 243 260 259 260 256 263 267 \n \nAnnual Allowances (in thousands) \n \n$ \n \n1,702 \n \n1,772 \n \n1,790 \n \n1,774 \n \n1,834 \n \n1,803 \n \n1,778 \n \n1,725 \n \n1,731 \n \n1,732 \n \n% Increase in Annual Allowance \n3.8% 4.1 1.0 (0.9) 3.4 (1.7) (1.4) (3.0) 0.3 0.4 \n \nAverage Annual Allowances \n$ 7,432 7,508 7,336 7,300 7,054 6,961 6,838 6,738 6,582 6,489 \n \nGMPF \n \nAdded to Rolls \n \nRemoved from Rolls \n \nRoll End of Year \n \nYear Ended 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nNumber 85 92 94 95 83 62 54 79 83 97 \n \nAnnual Allowances (in thousands) \n \n$ \n \n91 \n \n100 \n \n101 \n \n106 \n \n87 \n \n68 \n \n55 \n \n82 \n \n90 \n \n106 \n \nNumber 3 1 3 3 5 5 6 9 \n11 7 \n \nAnnual Allowances (in thousands) \n \n$ \n \n4 \n \n1 \n \n4 \n \n3 \n \n5 \n \n6 \n \n5 \n \n9 \n \n11 \n \n8 \n \nNumber 386 477 568 660 738 795 843 913 985 \n1,075 \n \nAnnual Allowances (in thousands) \n \n$ \n \n421 \n \n520 \n \n617 \n \n720 \n \n802 \n \n864 \n \n914 \n \n987 \n \n1,066 \n \n1,164 \n \n% Increase in Annual Allowance \n26.0% 23.5 18.7 16.7 11.4 \n7.7 5.8 8.0 8.0 9.2 \n \nAverage Annual Allowances \n$ 1,091 1,090 1,086 1,091 1,087 1,087 1,084 1,081 1,082 1,083 \n \nSEAD-OPEB is a post-employment life insurance plan which does not have annuity payments. \n \n129 \n \n Analysis of Change in Unfunded Accrued Liability (UAL) \n \nActuarial Section \n \n2018 \n \n2017 \n \n2016 \n \n2015 \n \n2014 \n \n2013 \n \n2012 \n \n2011 \n \n2010 \n \n2009 \n \nAmount of Increase (Decrease) (in millions) \n \nERS \n \nInterest (7.40) added to \n \nprevious UAL \n \n$ \n \nAccrued liability contribution \n \nExperience: \n \nValuation asset growth Pensioners' mortality Turnover and retirements New entrants Salary increases Method changes Amendments (COLAs) Assumption changes Lawsuit Programming modification Data changes Misc. changes \n \n327.6 $ \n(574.4) \n(130.4) 2.6 \n58.7 12.4 53.5 \n-- 39.2 161.1 \n-- -- 15.3 8.1 \n \n325.9 $ \n(551.0) \n(48.6) 9.0 \n39.9 7.8 \n127.5 -- \n28.9 158.3 \n-- -- (16.2) -- \n \n331.8 $ \n(514.7) \n8.5 12.8 43.6 \n7.8 (0.6) \n-- 28.4 \n-- -- -- 3.6 0.1 \n \n346.2 $ \n(419.4) \n(198.9) 13.9 50.8 10.3 (89.6) -- -- 80.4 -- -- 14.4 (0.1) \n \n363.9 $ \n(321.7) \n(228.9) 60.4 45.5 9.3 \n(159.4) -- -- -- -- -- \n(6.0) 0.1 \n \n338.8 \n(239.1) \n253.7 20.6 \n103.7 14.1 (46.8) \n(128.3) -- -- -- -- \n18.7 (0.1) \n \n$ 299.2 $ \n(147.7) \n396.3 15.5 93.8 12.1 (74.2) -- \n(118.8) -- -- \n26.3 12.9 12.6 \n \n243.7 $ \n(122.9) \n433.6 16.4 91.4 28.4 49.0 -- -- -- -- (28.7) 9.1 20.2 \n \n169.8 $ \n(89.4) \n710.1 49.2 \n118.4 15.0 \n(259.2) -- -- \n250.7 -- -- \n(2.4) 22.5 \n \n124.8 \n(99.7) \n609.1 65.4 \n107.3 16.7 \n(296.9) -- \n(358.6) -- \n75.9 -- \n270.5 86.4 \n \nTotal \n \n$ (26.3) $ \n \n81.5 $ (78.7) $ (192.0) $ (236.8) $ 335.3 $ 528.0 $ 740.2 $ 984.7 $ 600.9 \n \nPSERS \n \nAmount of Increase (Decrease) (in thousands) \n \nInterest (7.40) added to previous UAL \n \n$ 12,591.0 $ 11,574.7 $ 12,159.9 $ 11,918.7 $ 13,724.1 $ 13,830.7 $ 12,474.4 $ 10,349.3 $ 4,021.0 $ \n \nAccrued liability contribution \nExperience: \nValuation asset growth Pensioners' mortality Turnover and retirements New entrants Method changes Amendments COLAs Assumption changes Lawsuit Data Changes Allotment for Expenses Misc. changes \n \n(17,584.7) \n(8,805.0) (2,859.3) (1,024.6) 3,206.8 \n-- 16,292.1 (6,469.5) 10,995.2 \n-- -- -- (352.4) \n \n(15,278.9) \n(3,247.0) (308.6) (879.7) \n4,334.7 -- \n15,892.7 (6,786.4) 10,547.5 \n-- -- -- (29.5) \n \n(17,394.7) \n841.0 (643.8) (228.2) 2,798.1 \n-- -- (5,492.0) -- -- -- -- 157.2 \n \n(17,704.8) \n(12,207.0) 414.9 \n2,618.5 2,875.9 \n-- -- (14,772.9) 30,030.0 -- -- -- 43.0 \n \n(15,915.4) \n(14,071.0) 1,286.7 2,580.8 2,786.0 -- -- \n(14,398.9) -- -- -- -- \n(64.9) \n \n(12,497.7) \n13,868.0 (381.9) \n4,772.4 2,757.7 (9,259.0) \n-- (14,813.1) \n-- -- -- -- 301.7 \n \n(4,843.8) \n21,922.0 (1,149.5) 4,974.5 2,783.8 \n-- -- (20,664.9) -- -- -- -- 2,586.9 \n \n4,022.8 \n24,002.0 (3,000.5) 3,403.6 3,167.0 \n-- -- (16,603.6) -- -- -- 2,122.7 872.4 \n \n6,403.4 \n39,729.0 (828.9) \n12,375.8 3,047.8 -- -- \n(14,121.2) 33,717.7 \n-- (2,192.3) 2,029.0 \n195.0 \n \n(1,567.9) \n5,026.0 \n34,015.0 973.7 \n6,201.3 3,267.7 \n-- -- -- -- 2,168.0 24,199.5 433.0 (197.3) \n \nTotal \n \n$ 5,989.6 $ 15,819.5 $ (7,802.5) $ 3,216.3 $ (24,072.6) $ (1,421.2) $ 18,083.4 $ 28,335.7 $ 84,376.3 $ 74,519.0 \n \n(continued) 130 \n \n Analysis of Change in Unfunded Accrued Liability (UAL) \n \nActuarial Section \n \n2018 \n \n2017 \n \n2016 \n \n2015 \n \n2014 \n \n2013 \n \n2012 \n \n2011 \n \n2010 \n \n2009 \n \nGJRS \n \nInterest (7.40) added to previous UAL \n \n$ (2,416.5) \n \nAccrued liability contribution Experience: \nValuation asset growth Pensioners' mortality Turnover and retirements New entrants Salary increases Method changes Amendments (COLAs) Assumption changes Data changes Programming modification Misc. changes \n \n2,005.4 \n(4,346.6) 543.1 (162.6) 338.7 \n(5,756.8) -- \n993.1 3,696.0 \n-- -- 263.6 \n \nTotal \n \n$ (4,842.6) \n \n$ (3,125.4) \n1,245.0 \n(1,538.9) (339.7) \n2,307.0 2,353.1 \n187.7 -- \n3,345.4 3,615.6 \n-- -- 1,402.0 \n$ 9,451.8 \n \nAmount of Increase (Decrease) (in thousands) \n \n$ (3,457.6) (746.2) \n \n$ (2,259.9) 3,754.1 \n \n$ (1,207.3) 5,803.3 \n \n$ (1,977.2) 5,187.8 \n \n562.3 1,530.2 \n872.4 1,190.9 \n209.7 -- \n3,179.6 -- -- -- \n1,086.9 \n$ 4,428.2 \n \n(5,855.8) 639.6 (370.0) \n1,539.1 (8,848.5) \n-- -- (5,030.9) -- -- 464.1 \n$ (15,968.2) \n \n(6,807.0) 2,138.5 (5,962.8) 1,272.3 (10,382.5) \n-- -- -- -- -- 1,110.1 \n$ (14,035.4) \n \n4,949.6 533.8 \n3,941.4 3,138.0 (4,620.6) (6,827.0) \n-- -- -- 4,606.4 1,333.8 \n$ 10,266.0 \n \n$ (2,774.8) \n4,710.8 \n8,638.5 376.9 \n2,080.7 442.3 \n(4,536.5) -- \n(870.0) -- -- \n1,648.9 917.5 \n$ 10,634.3 \n \n$ (2,891.5) \n4,079.8 \n9,404.0 2,076.8 \n(276.3) 750.1 1,265.9 \n-- -- -- -- -- (12,852.1) \n$ 1,556.7 \n \n$ (2,636.2) \n4,592.1 \n16,228.0 560.9 \n2,290.6 -- \n(10,213.5) -- -- \n(14,826.5) 579.1 -- 21.3 \n$ (3,404.2) \n \n$ (3,360.0) \n3,596.2 \n13,941.0 1,102.3 1,982.9 967.2 \n(10,561.2) -- \n(2,359.4) -- \n4,581.2 -- \n(240.6) \n$ 9,649.6 \n \nAmount of Increase (Decrease) (in thousands) \n \nLRS \n \nInterest (7.40) added to previous UAL \n \n$ (535.7) $ (497.8) $ (445.9) $ (421.9) $ (343.3) $ (301.8) $ (302.5) $ (343.4) $ (508.5) $ (468.9) \n \nAccrued liability contribution \n \n322.9 \n \n250.3 \n \n338.3 \n \n173.4 \n \n161.9 \n \n(62.4) \n \n33.9 \n \n107.1 \n \n(32.5) \n \n(21.1) \n \nExperience: \n \nValuation asset growth \n \n(342.2) \n \n(129.2) \n \n24.1 \n \n(491.6) \n \n(576.5) \n \n513.9 \n \n829.0 \n \n906.2 \n \n1,534.0 \n \n1,307.4 \n \nPensioners' mortality \n \n118.3 \n \n245.9 \n \n(66.1) \n \n(50.8) \n \n323.8 \n \n(29.6) \n \n19.1 \n \n(18.7) \n \n339.2 \n \n240.7 \n \nTurnover and retirements \n \n(175.2) \n \n(257.7) \n \n(198.9) \n \n(10.1) \n \n(347.5) \n \n17.4 \n \n(84.3) \n \n254.5 \n \n105.1 \n \n(5.7) \n \nNew entrants \n \n16.7 \n \n99.2 \n \n26.8 \n \n35.1 \n \n135.2 \n \n144.5 \n \n16.9 \n \n74.0 \n \n98.8 \n \n-- \n \nMethod changes \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n(418.0) \n \n-- \n \n-- \n \n-- \n \n-- \n \nAmendments \n \n67.6 \n \n50.4 \n \n51.5 \n \n-- \n \n-- \n \n(488.1) \n \n(549.7) \n \n(481.8) \n \n(465.3) \n \n-- \n \nNo COLAs \n \n(462.8) \n \n(458.3) \n \n(418.2) \n \n(452.6) \n \n(470.8) \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \nAssumption changes \n \n229.1 \n \n223.7 \n \n-- \n \n852.3 \n \n-- \n \n-- \n \n-- \n \n-- \n \n975.2 \n \n-- \n \nData changes \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n114.8 \n \n(1,529.1) \n \nMisc. changes \n \n34.8 \n \n(127.9) \n \n(4.7) \n \n46.2 \n \n69.9 \n \n71.1 \n \n46.4 \n \n46.9 \n \n41.6 \n \n(51.7) \n \nTotal \n \n$ (726.5) $ (601.5) $ (693.1) $ (320.0) $ (1,047.3) $ (553.1) $ \n \n8.8 $ 544.9 $ 2,202.4 $ (528.4) \n \n(continued) 131 \n \n Analysis of Change in Unfunded Accrued Liability (UAL) \n \nActuarial Section \n \nGMPF* \nInterest (7.40) added to previous UAL Accrued liability contribution Experience: \nValuation asset growth Pensioners' mortality Turnover and retirements New entrants Method changes Assumption changes Expense deficit Misc. changes \nTotal \n \n2018 \n \n2017 \n \n2016 \n \n2015 \n \n2014 \n \nAmount of Increase (Decrease) (in thousands) \n \n2013 \n \n2012 \n \n2011 \n \n$ 1,489.4 $ 1,484.8 $ 1,407.5 $ 1,316.3 $ 1,344.3 $ 1,360.8 $ 1,354.9 $ 1,216.1 \n \n(2,140.6) \n \n(1,747.5) \n \n(1,698.6) \n \n(1,765.6) \n \n(1,775.3) \n \n(1,661.5) \n \n(1,502.4) \n \n(1,173.3) \n \n(181.0) 40.7 \n143.1 208.9 \n-- 570.2 \n-- 2.6 \n \n(50.0) (109.2) \n11.0 138.9 \n-- 537.6 \n-- 64.2 \n \n59.0 119.3 233.3 165.1 \n-- -- -- 744.4 \n \n(203.0) 126.1 120.5 236.9 \n-- 985.8 \n-- 398.7 \n \n(247.0) 88.8 (87.9) \n142.6 -- -- -- \n161.1 \n \n39.3 80.2 186.4 137.8 (393.0) \n-- -- 30.6 \n \n$ \n \n133.3 $ \n \n329.8 $ 1,030.0 $ 1,215.7 $ \n \n(373.4) $ \n \n(219.4) $ \n \n107.0 68.3 17.9 \n127.1 -- -- -- \n(93.6) \n79.2 $ \n \n113.8 58.5 \n205.4 1,469.6 \n-- -- 37.0 (77.0) \n1,850.1 \n \n*Note: Data prior to 2011 is not available for GMPF. SEAD-OPEB: Data is not available. \n \n132 \n \n Solvency Test Results \n(in thousands) \n \nActuarial Section \n \nERS \n \nActuarial Valuation as of 6/30 \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n \nActive Member \n \nRetirants \u0026 \n \n(Employer \n \nBeneficiaries Funded Portion) \n \nValuation Assets \n \n(1) \n \n(2) \n \n(3) \n \n$ 589,012 $ 10,034,939 $ 5,254,071 $ 13,613,606 \n \n551,607 \n \n10,652,040 \n \n5,091,705 \n \n13,046,193 \n \n503,867 \n \n11,058,344 \n \n5,094,694 \n \n12,667,557 \n \n460,861 \n \n11,420,011 \n \n4,897,050 \n \n12,260,595 \n \n405,841 \n \n11,935,364 \n \n4,641,244 \n \n12,129,803 \n \n385,058 \n \n12,108,737 \n \n4,498,168 \n \n12,376,120 \n \n367,462 \n \n12,520,321 \n \n4,211,744 \n \n12,675,649 \n \n368,281 \n \n12,592,980 \n \n4,238,427 \n \n12,854,518 \n \n368,935 \n \n12,729,977 \n \n4,415,986 \n \n13,088,185 \n \n372,375 \n \n12,927,796 \n \n4,512,270 \n \n13,412,046 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n \n(2) \n \n(3) \n \n100.0% 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 \n \n100.0% 100.0 100.0 100.0 \n98.2 99.0 98.3 99.2 99.9 100.0 \n \n56.9% 36.2 21.7 \n7.8 -- -- -- -- -- 2.5 \n \nPSERS \n \nActuarial Valuation as of 6/30 \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n \nActive Member \n \nRetirants \u0026 \n \n(Employer \n \nBeneficiaries Funded Portion) \n \nValuation Assets \n \n(1) \n \n(2) \n \n(3) \n \n$ \n \n15,862 $ 506,659 $ 300,711 $ 769,618 \n \n16,361 \n \n528,808 \n \n330,227 \n \n737,406 \n \n16,627 \n \n532,509 \n \n336,790 \n \n719,601 \n \n16,917 \n \n537,284 \n \n341,123 \n \n710,915 \n \n17,016 \n \n549,796 \n \n343,444 \n \n727,268 \n \n16,995 \n \n566,344 \n \n341,026 \n \n765,450 \n \n17,196 \n \n585,471 \n \n364,742 \n \n805,277 \n \n17,413 \n \n609,807 \n \n361,663 \n \n834,554 \n \n18,077 \n \n640,197 \n \n377,661 \n \n865,786 \n \n18,570 \n \n674,222 \n \n388,392 \n \n905,046 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n \n(2) \n \n(3) \n \n100.0% 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 \n \n100.0% 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 \n \n82.2% 58.2 50.6 45.9 46.7 53.4 55.5 57.3 54.9 54.6 \n \nGJRS \n \nActuarial Valuation as of 6/30 \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n \nActive Member \n \nRetirants \u0026 \n \n(Employer \n \nBeneficiaries Funded Portion) \n \nValuation Assets \n \n(1) \n \n(2) \n \n(3) \n \n$ \n \n61,188 $ 108,923 $ 112,363 $ 317,624 \n \n67,293 \n \n117,730 \n \n96,473 \n \n320,050 \n \n71,047 \n \n128,991 \n \n90,440 \n \n327,483 \n \n73,998 \n \n141,880 \n \n92,984 \n \n335,225 \n \n73,949 \n \n162,364 \n \n99,479 \n \n351,889 \n \n80,007 \n \n162,527 \n \n100,894 \n \n373,560 \n \n84,170 \n \n174,147 \n \n91,981 \n \n396,399 \n \n91,991 \n \n180,107 \n \n104,642 \n \n418,412 \n \n84,841 \n \n220,738 \n \n102,028 \n \n439,828 \n \n88,890 \n \n231,811 \n \n104,023 \n \n461,787 \n \n133 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n \n(2) \n \n(3) \n \n100.0% 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 \n \n100.0% 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 \n \n100.0% 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 \n \n(continued) \n \n Solvency Test Results \n(in thousands) \n \nLRS \n \nActuarial Valuation as of 6/30 \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nActuarial Accrued Liability for: \n \nActive \n \nActive Member \n \nMember \n \nRetirants \u0026 \n \n(Employer \n \nContributions Beneficiaries Funded Portion) \n \nValuation Assets \n \n(1) \n \n(2) \n \n$ 2,908 $ 18,465 $ \n \n3,166 \n \n19,208 \n \n2,921 \n \n19,759 \n \n3,185 \n \n19,200 \n \n2,951 \n \n19,623 \n \n3,430 \n \n19,006 \n \n3,287 \n \n19,873 \n \n3,630 \n \n19,202 \n \n3,543 \n \n19,382 \n \n3,862 \n \n19,048 \n \n(3) \n2,150 2,629 2,564 2,581 2,330 2,477 2,530 2,701 2,749 2,995 \n \n$ 30,303 29,581 29,278 28,990 29,481 30,538 31,635 32,171 32,913 33,871 \n \nGMPF \n \nActuarial Valuation as of 6/30 \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nActuarial Accrued Liability for: \n \nActive \n \nActive Member \n \nMember \n \nRetirants \u0026 \n \n(Employer \n \nContributions Beneficiaries Funded Portion) \n \nValuation Assets \n \n(1) \n \n(2) \n \n$ \n \n-- $ 12,742 $ \n \n-- \n \n14,015 \n \n-- \n \n15,379 \n \n-- \n \n17,518 \n \n-- \n \n19,396 \n \n-- \n \n21,389 \n \n-- \n \n24,075 \n \n-- \n \n26,337 \n \n-- \n \n28,867 \n \n-- \n \n30,964 \n \n(3) \n8,279 9,758 11,388 10,713 10,660 10,426 11,138 11,874 11,864 12,658 \n \n$ 6,413 7,558 8,702 \n10,087 12,131 14,264 16,446 18,414 20,604 23,362 \n \nSEAD-OPEB \n \nActuarial Valuation as of 6/30 \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nActuarial Accrued Liability for: \n \nActive \n \nActive Member \n \nMember \n \nRetirants \u0026 \n \n(Employer \n \nContributions Beneficiaries Funded Portion) \n \nValuation Assets \n \n(1) \n \n$ \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n(2) \n \n(3) \n \n$ 524,718 $ 208,953 $ 628,199 \n \n516,633 \n \n174,368 \n \n680,449 \n \n503,327 \n \n175,093 \n \n807,893 \n \n528,165 \n \n176,452 \n \n818,284 \n \n586,228 \n \n168,558 \n \n907,831 \n \n621,502 \n \n166,518 \n \n1,037,901 \n \n621,426 \n \n148,321 \n \n1,046,559 \n \n652,291 \n \n180,078 \n \n1,028,541 \n \n693,118 \n \n183,468 \n \n1,121,251 \n \n735,214 \n \n183,943 \n \n1,189,462 \n \nActuarial Section \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n \n(2) \n \n(3) \n \n100.0% 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 \n \n100.0% 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 \n \n100.0% 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n \n(2) \n \n(3) \n \nn/a \n \n50.3% \n \n--% \n \nn/a \n \n53.9 \n \n-- \n \nn/a \n \n56.6 \n \n-- \n \nn/a \n \n57.6 \n \n-- \n \nn/a \n \n62.5 \n \n-- \n \nn/a \n \n66.7 \n \n-- \n \nn/a \n \n68.3 \n \n-- \n \nn/a \n \n69.9 \n \n-- \n \nn/a \n \n71.4 \n \n-- \n \nn/a \n \n75.4 \n \n-- \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n \n(2) \n \n(3) \n \nn/a \n \n100.0% \n \n49.5% \n \nn/a \n \n100.0 \n \n93.9 \n \nn/a \n \n100.0 \n \n100.0 \n \nn/a \n \n100.0 \n \n100.0 \n \nn/a \n \n100.0 \n \n100.0 \n \nn/a \n \n100.0 \n \n100.0 \n \nn/a \n \n100.0 \n \n100.0 \n \nn/a \n \n100.0 \n \n100.0 \n \nn/a \n \n100.0 \n \n100.0 \n \nn/a \n \n100.0 \n \n100.0 \n \n134 \n \n Statistical Section \nFinding the Hidden Gems in Georgia \nDriftwood Beach - Jekyll Island \n \n Statistical Section \nIntroduction \nThe objective of the statistical section is to provide a historical perspective, context and relevant details to assist readers in evaluating the condition of the plans. All non-accounting data is taken from ERSGA's internal sources except for information which is derived from the actuarial valuations. FY2010 was the first year ERSGA added this information in their Annual Financial Report. Therefore, historical detail may not be complete for some schedules. Statistical information is not presented for SCJRF and DARF as both plans are immaterial, have no active members, and are closed to new members. \nFiduciary Funds Financial Trends \nThe following schedules have been included to help the reader understand how the System's financial position has changed over the past 10 years: \nAdditions by Source Deductions by Type Changes in Fiduciary Net Position Operational Trends The following schedules have been included to help the readers understand how the System's financial report relates to the services provided by the System and the activities it performs: Retiree Information Withdrawal (Refund) Data New Retiree Elections Statistical Data as of June 30, 2019 \nProprietary Fund \nSchedule of Revenue and Expenses 10-year Schedule of Membership \n136 \n \n Additions by Source - Contribution/Investment Income \n(in thousands) \n \nStatistical Section \n \nERS Member Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \nPSERS Member Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \nGJRS Member Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \nLRS Member Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \n \n2010 \n \n2011 \n \n2012 \n \n2013 \n \n2014 \n \n2015 \n \n2016 \n \n2017 \n \n2018 \n \n2019 \n \n$ 42,052 $ 39,480 $ 36,561 $ 38,955 $ 32,423 $ 33,713 $ 31,961 $ 35,863 $ 37,130 $ 36,252 \n \n263,064 261,132 274,034 358,992 418,807 505,668 583,082 613,201 639,302 638,989 \n \n-- \n \n-- \n \n-- \n \n-- \n \n10,945 \n \n12,495 \n \n12,484 \n \n12,080 \n \n12,865 \n \n10,220 \n \n1,176,741 2,269,270 231,782 1,495,849 2,021,748 474,147 141,292 1,475,626 1,166,013 873,404 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n10 \n \n10 \n \n10 \n \n10 \n \n10 \n \n$ 1,481,857 $ 2,569,882 $ 542,377 $ 1,893,796 $ 2,483,923 $ 1,026,033 $ 768,829 $ 2,136,780 $ 1,855,320 $ 1,558,875 \n \n$ 1,483 $ 1,451 $ 1,426 $ 1,538 $ 1,659 $ 1,800 $ 1,925 $ 2,084 $ 2,162 $ 2,256 \n \n5,530 \n \n7,509 \n \n15,884 \n \n24,829 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n27,160 \n \n28,461 \n \n28,580 \n \n26,277 \n \n29,276 \n \n30,263 \n \n66,404 128,096 \n \n13,554 \n \n88,067 123,799 \n \n30,129 \n \n9,809 \n \n97,715 \n \n78,418 \n \n60,553 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n$ 73,417 $ 137,056 $ 30,864 $ 114,434 $ 152,618 $ 60,390 $ 40,314 $ 126,076 $ 109,856 $ 93,072 \n \n$ 5,018 $ 4,721 $ 4,904 $ 4,408 $ 4,731 $ 5,061 $ 5,507 $ 4,906 $ 4,910 $ 5,469 \n \n3,369 \n \n1,163 \n \n2,083 \n \n2,279 \n \n1,373 \n \n2,696 \n \n4,754 \n \n4,081 \n \n4,725 \n \n3,117 \n \n-- \n \n-- \n \n-- \n \n-- \n \n1,002 \n \n1,564 \n \n2,869 \n \n2,603 \n \n1,841 \n \n2,137 \n \n27,378 \n \n57,330 \n \n6,571 \n \n42,104 \n \n60,012 \n \n14,697 \n \n5,055 \n \n49,259 \n \n39,877 \n \n30,827 \n \n175 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n$ 35,940 $ 63,214 $ 13,558 $ 48,791 $ 67,118 $ 24,018 $ 18,185 $ 60,849 $ 51,353 $ 41,550 \n \n$ \n \n318 $ 320 $ 323 $ 373 $ 282 $ 327 $ 328 $ 327 $ 323 $ 339 \n \n75 \n \n75 \n \n76 \n \n128 \n \n45 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n2,610 \n \n5,194 \n \n550 \n \n3,573 \n \n4,969 \n \n1,189 \n \n363 \n \n3,741 \n \n2,962 \n \n2,228 \n \n110 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n$ 3,113 $ 5,589 $ 949 $ 4,074 $ 5,296 $ 1,516 $ 691 $ 4,068 $ 3,285 $ 2,567 \n \n(continued) 137 \n \n Additions by Source - Contribution/Investment Income \n(in thousands) \n \nStatistical Section \n \nGMPF \nMember Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \nSEAD - OPEB \nMember Contributions Employer Contributions Insurance Premiums Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \nDefined Contribution Plan - GDCP \nMember Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \n \n2010 \n \n2011 \n \n2012 \n \n2013 \n \n2014 \n \n2015 \n \n2016 \n \n2017 \n \n2018 \n \n2019 \n \n$ \n \n--$ \n \n--$ \n \n--$ \n \n--$ \n \n--$ \n \n--$ \n \n--$ \n \n--$ \n \n--$ \n \n-- \n \n1,434 \n \n1,282 \n \n1,521 \n \n1,703 \n \n1,892 \n \n1,893 \n \n1,990 \n \n2,018 \n \n2,377 \n \n2,537 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n565 \n \n1,465 \n \n221 \n \n1,374 \n \n2,179 \n \n585 \n \n240 \n \n2,262 \n \n1,928 \n \n1,683 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n$ 1,999 $ 2,747 $ 1,742 $ 3,077 $ 4,071 $ 2,478 $ 2,230 $ 4,280 $ 4,305 $ 4,220 \n \n$ \n \n-- \n \n-- \n \n6,755 \n \n69,340 \n \n-- \n \n$ \n \n-- \n \n-- \n \n6,437 \n \n144,270 \n \n-- \n \n$ \n \n-- \n \n-- \n \n5,532 \n \n17,193 \n \n-- \n \n$ \n \n-- \n \n-- \n \n5,075 \n \n108,148 \n \n-- \n \n$ \n \n-- \n \n-- \n \n4,502 \n \n154,868 \n \n-- \n \n$ \n \n-- \n \n-- \n \n4,187 \n \n37,876 \n \n-- \n \n$ \n \n-- \n \n-- \n \n3,931 \n \n12,559 \n \n-- \n \n$ \n \n-- \n \n1 \n \n3,793 \n \n125,550 \n \n-- \n \n$ \n \n-- \n \n-- \n \n3,599 \n \n101,542 \n \n-- \n \n$ \n \n-- \n \n5 \n \n3,328 \n \n79,193 \n \n-- \n \n$ 76,095 $ 150,707 $ 22,725 $ 113,223 $ 159,370 $ 42,063 $ 16,490 $ 129,344 $ 105,141 $ 82,526 \n \n$ 16,002 -- -- \n10,319 -- \n \n$ 17,656 -- -- \n775 -- \n \n$ 17,171 -- -- \n652 -- \n \n$ 16,676 -- -- \n137 -- \n \n$ 16,290 -- -- \n1,368 -- \n \n$ 15,655 -- -- \n1,326 -- \n \n$ 14,708 -- -- \n5,591 -- \n \n$ 14,921 $ 14,585 $ 14,578 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n(1,056) \n \n(356) \n \n8,324 \n \n-- \n \n-- \n \n-- \n \n$ 26,321 $ 18,431 $ 17,823 $ 16,813 $ 17,658 $ 16,981 $ 20,299 $ 13,865 $ 14,229 $ 22,902 \n \n(continued) 138 \n \n Additions by Source - Contribution/Investment Income \n(in thousands) \n \nStatistical Section \n \nDefined Contribution Plan - 401(k) \nMember Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \nDefined Contribution Plan - 457 \nMember Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \n \n2010 \n \n2011 \n \n2012 \n \n2013 \n \n2014 \n \n2015 \n \n2016 \n \n2017 \n \n2018 \n \n2019 \n \n$ 33,899 15,664 -- 25,283 385 \n \n$ 38,006 25,442 -- 59,581 446 \n \n$ 40,331 4,355 -- 3,112 800 \n \n$ 44,428 18,279 -- 52,835 948 \n \n$ 53,724 21,513 -- 78,583 1,122 \n \n$ 64,870 25,615 -- 17,665 1,298 \n \n$ 79,422 29,982 -- 5,281 1,429 \n \n$ 93,608 36,761 -- 88,771 1,584 \n \n$ 110,848 43,176 -- 72,671 1,744 \n \n$ 119,770 47,170 -- 61,106 544 \n \n$ 75,231 $ 123,475 $ 48,598 $ 116,490 $ 154,942 $ 109,448 $ 116,114 $ 220,724 $ 228,439 $ 228,590 \n \n$ 21,171 -- -- \n35,806 468 \n \n$ 20,108 -- -- \n70,963 339 \n \n$ 19,551 -- -- \n7,785 -- \n \n$ 18,753 -- -- \n55,737 -- \n \n$ 17,623 -- -- \n73,746 -- \n \n$ 17,445 -- -- \n18,991 -- \n \n$ 17,413 -- -- \n7,855 -- \n \n$ 18,899 -- -- \n59,541 -- \n \n$ 20,133 -- -- \n46,748 -- \n \n$ 20,264 -- -- \n39,100 53 \n \n$ 57,445 $ 91,410 $ 27,336 $ 74,490 $ 91,369 $ 36,436 $ 25,268 $ 78,440 $ 66,881 $ 59,417 \n \n139 \n \n Deductions by Type \n(in thousands) \n \nStatistical Section \n \nERS \n \nFiscal Year Service \n \n2010 $ 878,482 \n \n2011 \n \n921,136 \n \n2012 \n \n964,485 \n \n2013 \n \n1,007,816 \n \n2014 \n \n1,051,993 \n \n2015 \n \n1,076,676 \n \n2016 \n \n1,092,909 \n \n2017 \n \n1,130,996 \n \n2018 \n \n1,146,226 \n \n2019 \n \n1,171,942 \n \nBenefit Payments \n \nPartial Lump-Sum \nOption \n$ 23,480 30,946 31,963 35,933 24,567 24,391 19,154 19,765 21,624 20,535 \n \nDisability \n$ 146,031 140,849 143,317 145,152 146,245 147,418 147,706 151,772 152,469 155,193 \n \nSurvivor Benefits \n$ 82,676 75,891 76,973 80,300 83,193 85,794 87,843 91,750 92,979 96,086 \n \nTotal Benefit Payments \n$ 1,130,669 1,168,822 1,216,738 1,269,201 1,305,998 1,334,278 1,347,633 1,394,283 1,413,298 1,443,756 \n \nNet Administrative \nExpenses Refunds \n \n$ \n \n14,505 $ 6,483 \n \n14,431 \n \n7,515 \n \n12,051 \n \n7,767 \n \n12,889 \n \n7,390 \n \n7,440 \n \n8,757 \n \n7,872 \n \n7,450 \n \n8,506 \n \n7,087 \n \n8,732 \n \n9,033 \n \n8,056 \n \n7,585 \n \n7,142 \n \n7,691 \n \nTotal Deductions \nfrom Fiduciary Net Position \n$ 1,151,657 \n1,190,768 \n1,236,556 \n1,289,480 \n1,322,195 \n1,349,600 \n1,363,226 \n1,412,048 \n1,428,939 \n1,458,589 \n \nPSERS \n \nBenefit Payments \n \nFiscal Year \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nService \n$ 45,741 46,548 46,911 47,805 48,911 49,704 50,572 52,012 54,257 56,008 \n \nDisability \n$ 5,402 5,369 5,369 5,328 5,280 5,227 5,172 5,117 5,114 4,991 \n \nSurvivor Benefits \n$ 2,052 2,063 1,903 1,908 1,998 2,041 2,160 2,249 2,449 2,638 \n \nTotal Benefit Payments \n$ 53,195 53,980 54,183 55,041 56,189 56,972 57,903 59,378 61,820 63,637 \n \nNet Administrative \nExpenses \n \n$ \n \n1,956 \n \n2,046 \n \n2,040 2,021 \n \n1,450 \n \n1,545 1,321 \n \n1,308 \n \n1,331 1,377 \n \nRefunds \n$ 251 267 349 492 514 456 465 \n1,031 701 609 \n \nTotal Deductions \nfrom Fiduciary Net Position \n$ 55,402 \n56,293 \n56,572 \n57,554 \n58,153 \n58,973 \n59,689 \n61,717 \n63,852 \n65,623 \n \nGJRS \n \nBenefit Payments \n \nFiscal Year \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nService \n$ 10,633 11,245 12,608 14,273 15,305 16,084 16,677 19,349 22,239 24,642 \n \nDisability \n$ 114 112 113 112 112 112 112 114 117 119 \n \nSurvivor Benefits \n$ 1,618 1,654 1,695 1,865 2,024 2,169 2,222 2,321 2,578 2,701 \n \nTotal Benefit Payments \n$ 12,365 13,011 14,416 16,250 17,441 18,365 19,011 21,784 24,934 27,462 \n \nNet Administrative \nExpenses \n \n$ \n \n270 \n \n290 310 \n \n313 \n \n754 819 \n \n754 \n \n728 794 \n \n820 \n \nRefunds \n$ 139 260 146 105 22 772 261 166 150 553 \n \nTotal Deductions \nfrom Fiduciary Net Position \n$ 12,774 \n13,561 \n14,872 \n16,668 \n18,217 \n19,956 \n20,026 \n22,678 \n25,878 \n28,835 \n \n(continued) 140 \n \n Deductions by Type \n(in thousands) \n \nStatistical Section \n \nLRS \n \nBenefit Payments \n \nFiscal Year \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nService \n \n$ \n \n1,308 \n \n1,309 1,364 \n \n1,376 \n \n1,336 1,315 \n \n1,294 \n \n1,323 1,347 \n \n1,383 \n \nSurvivor Benefits \n \n$ \n \n436 \n \n452 446 \n \n448 \n \n465 441 \n \n429 \n \n440 425 \n \n473 \n \nTotal Benefit Payments \n \n$ \n \n1,744 \n \n1,761 1,810 \n \n1,824 \n \n1,801 1,756 \n \n1,724 \n \n1,763 1,772 \n \n1,856 \n \nNet Administrative \nExpenses \n \n$ 120 \n \n$ \n \n131 110 \n \n119 \n \n152 169 \n \n313 \n \n224 283 \n \n290 \n \nRefunds \n47 60 74 88 30 26 38 75 22 70 \n \nTotal Deductions \nfrom Fiduciary Net Position \n \n$ \n \n1,911 \n \n1,952 1,994 \n \n2,031 \n \n1,983 1,951 \n \n2,075 \n \n2,062 2,077 \n \n2,216 \n \nGMPF \n \nFiscal Year \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nBenefit Payments \n \nService* \n \n$ \n \n489 \n \n579 \n \n678 \n \n772 \n \n841 \n \n896 \n \n963 \n \n1,042 \n \n1,138 \n \n1,221 \n \nTotal Benefit Payments \n \n$ \n \n489 \n \n579 \n \n678 \n \n772 \n \n841 \n \n896 \n \n963 \n \n1,042 \n \n1,138 \n \n1,221 \n \nNet Administrative \nExpenses \n \n$ \n \n43 \n \n37 \n \n34 \n \n31 \n \n110 \n \n121 \n \n262 \n \n244 \n \n225 \n \n235 \n \nTotal Deductions \nfrom Fiduciary Net Position \n \n$ \n \n532 \n \n616 \n \n712 \n \n803 \n \n951 \n \n1,017 \n \n1,225 \n \n1,286 \n \n1,363 \n \n1,456 \n \n*The only type of retirement in GMPF is a service retirement. \n \nSEAD-OPEB \n \nFiscal Year \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nBenefit Payments \n \nDeath Benefits** \n$ 23,642 23,060 24,855 28,482 28,891 32,979 33,911 36,058 36,249 37,416 \n \nTotal Benefit Payments \n$ 23,642 23,060 24,855 28,482 28,891 32,979 33,911 36,058 36,249 37,416 \n \nNet Administrative \nExpenses \n \nTotal Deductions \nfrom Fiduciary Net Position \n \n$ 203 203 203 203 414 428 599 576 681 716 \n \n$ 23,845 23,263 25,058 28,685 29,305 33,407 34,510 36,634 36,930 38,132 \n \n**The only type of benefit in SEAD-OPEB is a death benefit. \n \n141 \n \n(continued) \n \n Deductions by Type \n(in thousands) \n \nStatistical Section \n \nDefined Contribution Plan - GDCP Benefit Payments \n \nFiscal Year \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nPeriodic Payments \n \n$ \n \n9 \n \n9 \n \n11 \n \n9 \n \n9 \n \n-- \n \n-- \n \n-- \n \n-- \n \n10 \n \nTotal Benefit Payments \n \n$ \n \n9 \n \n9 \n \n11 \n \n9 \n \n9 \n \n-- \n \n35 \n \n-- \n \n-- \n \n10 \n \nNet Administrative \nExpenses \n \n$ \n \n1,110 $ \n \n1,180 \n \n1,138 \n \n1,160 \n \n991 \n \n990 \n \n766 \n \n785 \n \n852 \n \n882 \n \nRefunds \n10,613 11,390 12,749 14,415 17,721 22,340 11,911 11,544 10,080 10,931 \n \nTotal Deductions \nfrom Fiduciary Net Position \n$ 11,732 \n12,579 \n13,898 \n15,584 \n18,721 \n23,330 \n12,712 \n12,329 \n10,932 \n11,823 \n \nDefined Contribution Plan - 401(k) \n \nFiscal Year \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nBenefit Payments \n \nDistributions \n$ 23,618 42,457 36,986 57,351 43,133 95,428 46,508 55,866 64,103 79,644 \n \nTotal Benefit Payments \n$ 23,618 42,457 36,986 57,351 43,133 95,428 46,508 55,866 64,103 79,644 \n \nNet Administrative \nExpenses \n \n$ \n \n829 \n \n2,054 \n \n2,111 \n \n2,457 \n \n2,300 \n \n2,755 \n \n2,832 \n \n3,096 \n \n3,639 \n \n3,431 \n \nTotal Deductions \nfrom Fiduciary Net Position \n$ 24,447 \n44,511 \n39,097 \n59,808 \n45,433 \n98,183 \n49,340 \n58,962 \n67,742 \n83,075 \n \nDefined Contribution Plan - 457 \n \nFiscal Year \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nBenefit Payments \n \nDistributions \n$ 37,014 44,773 41,835 63,388 45,807 50,479 43,288 38,872 40,690 42,081 \n \nTotal Benefit Payments \n$ 37,014 44,773 41,835 63,388 45,807 50,479 43,288 38,872 40,690 42,081 \n \nNet Administrative \nExpenses \n \nTotal Deductions \nfrom Fiduciary Net Position \n \n$ 2,115 \n \n$ 39,129 \n \n1,064 \n \n45,837 \n \n910 \n \n42,745 \n \n996 \n \n64,384 \n \n812 \n \n46,619 \n \n866 \n \n51,345 \n \n820 \n \n44,108 \n \n789 \n \n39,661 \n \n442 \n \n41,132 \n \n724 \n \n42,805 \n \n142 \n \n Changes in Fiduciary Net Position \n(in thousands) \n \nStatistical Section \n \nERS \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nPSERS \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nGJRS \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nLRS \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nGMPF \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \n \n2010 \n \n2011 \n \n2012 \n \n2013 \n \n2014 \n \n2015 \n \n2016 \n \n2017 \n \n2018 \n \n2019 \n \n$ 1,481,857 $ 2,569,882 $ 542,377 $ 1,893,796 $ 2,483,923 $ 1,026,033 $ 768,829 $ 2,136,780 $ 1,855,320 $ 1,558,875 \n \n1,151,657 1,190,768 1,236,556 1,289,480 1,322,195 1,349,600 1,363,226 1,412,048 1,428,939 1,458,589 \n \n-- \n \n-- (12,724) \n \n(5,009) \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n330,200 1,379,114 (706,903) 599,307 1,161,728 (323,567) (594,397) 724,732 426,381 100,286 \n \n73,417 55,402 \n-- 18,015 \n \n137,056 56,293 -- 80,763 \n \n30,864 56,572 \n-- (25,708) \n \n114,434 57,554 -- 56,880 \n \n152,618 58,153 -- 94,465 \n \n60,390 58,973 \n-- 1,417 \n \n40,314 59,689 \n-- (19,375) \n \n126,076 61,717 -- 64,359 \n \n109,856 63,852 -- 46,004 \n \n93,072 65,623 \n-- 27,449 \n \n35,940 12,774 \n-- 23,166 \n \n63,214 13,561 \n-- 49,653 \n \n13,558 14,872 \n-- (1,314) \n \n48,791 16,668 \n-- 32,123 \n \n67,118 18,217 \n-- 48,901 \n \n24,018 19,956 \n-- 4,062 \n \n18,185 20,026 \n-- (1,841) \n \n60,849 22,678 \n-- 38,171 \n \n51,353 25,878 \n-- 25,475 \n \n41,550 28,835 \n-- 12,715 \n \n3,113 1,911 \n-- 1,202 \n \n5,589 1,952 \n-- 3,637 \n \n949 1,994 \n-- (1,045) \n \n4,074 2,031 \n-- 2,043 \n \n5,296 1,983 \n-- 3,313 \n \n1,516 1,951 \n-- (435) \n \n691 2,075 \n-- (1,384) \n \n4,068 2,062 \n-- 2,006 \n \n3,285 2,077 \n-- 1,208 \n \n2,567 2,216 \n-- 351 \n \n1,999 532 -- \n1,467 \n \n2,747 616 -- \n2,131 \n \n1,742 712 -- \n1,030 \n \n3,077 803 -- \n2,274 \n \n4,071 951 -- \n3,120 \n \n2,478 1,017 \n-- 1,461 \n \n2,230 1,225 \n-- 1,005 \n \n4,280 1,286 \n-- 2,994 \n \n4,305 1,363 \n-- 2,942 \n \n4,220 1,456 \n-- 2,764 \n \n(continued) 143 \n \n Changes in Fiduciary Net Position \n(in thousands) \n \nStatistical Section \n \nSEAD - OPEB \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nDefined Contribution Plan - GDCP \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nDefined Contribution Plan - 401(k) \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nDefined Contribution Plan - 457 \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \n \n2010 \n \n2011 \n \n2012 \n \n2013 \n \n2014 \n \n2015 \n \n2016 \n \n2017 \n \n2018 \n \n2019 \n \n$ 76,095 $ 150,707 $ 22,725 $ 113,223 $ 159,370 $ 42,063 $ 16,490 $ 129,344 $ 105,141 $ 82,526 \n \n23,845 \n \n23,263 \n \n25,058 \n \n28,685 \n \n29,305 \n \n33,407 \n \n34,510 \n \n36,634 \n \n36,930 \n \n38,132 \n \n-- \n \n-- \n \n12,724 \n \n5,009 \n \n5 \n \n2 \n \n2 \n \n-- \n \n-- \n \n-- \n \n52,250 127,444 \n \n10,391 \n \n89,547 130,070 \n \n8,658 (18,018) 92,710 \n \n68,211 \n \n44,394 \n \n26,321 11,732 \n-- 14,589 \n \n18,431 12,579 \n-- 5,852 \n \n17,823 13,898 \n-- 3,925 \n \n16,813 15,584 \n-- 1,229 \n \n17,658 18,721 \n-- (1,063) \n \n16,981 23,330 \n-- (6,349) \n \n20,299 12,712 \n-- 7,587 \n \n13,865 12,329 \n-- 1,536 \n \n14,229 10,932 \n-- 3,297 \n \n22,902 11,823 \n-- 11,079 \n \n75,231 24,447 \n-- 50,784 \n \n123,475 44,511 -- 78,964 \n \n48,598 39,097 \n-- 9,501 \n \n116,490 59,808 -- 56,682 \n \n154,942 45,433 -- \n109,509 \n \n109,448 98,183 -- 11,265 \n \n116,114 49,340 -- 66,774 \n \n220,724 58,962 -- \n161,762 \n \n228,439 67,742 -- \n160,697 \n \n228,590 83,075 -- \n145,515 \n \n57,445 39,129 \n-- 18,316 \n \n91,410 45,837 \n-- 45,573 \n \n27,336 42,745 \n-- (15,409) \n \n74,490 64,384 \n-- 10,106 \n \n91,369 46,619 \n-- 44,750 \n \n36,436 51,345 \n-- (14,909) \n \n25,268 44,108 \n-- (18,840) \n \n78,440 39,661 \n-- 38,779 \n \n66,881 41,132 \n-- 25,749 \n \n59,417 42,805 \n-- 16,612 \n \n144 \n \n Number of Retirees \n \nStatistical Section \n \nERS Retirees \n \n2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 \n0 \n \n52,275 50,863 49,632 48,449 47,180 45,819 44,546 42,053 40,250 38,518 \n10,000 20,000 30,000 40,000 50,000 60,000 \n \nGJRS Retirees \n \n2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 \n150 \n \n295 290 278 262 235 220 206 \n \n200 \n \n250 \n \n300 \n \n400 358 346 \n \n350 \n \n400 \n \n450 \n \nGMPF Retirees \n \n2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 \n200 \n \n1,148 1,076 985 915 844 795 739 660 568 480 \n \n400 \n \n600 \n \n800 1,000 1,200 1,400 \n \n2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 \n0 \n \nPSERS Retirees \n \n10,000 \n \n18,990 18,492 18,104 17,626 16,994 16,434 15,742 15,106 14,613 13,995 \n20,000 \n \nLRS Retirees \n \n2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 \n \n244 244 235 \n \n269 267 263 257 260 259 259 \n \n210 \n \n220 \n \n230 \n \n240 \n \n250 \n \n260 \n \n270 \n \n145 \n \n Average Monthly Payments to Retirees \n \nERS \n \n$2,600 $2,400 $2,200 $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 \n \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nGJRS \n \n$6,500 $6,000 $5,500 $5,000 $4,500 $4,000 $3,500 $3,000 \n \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nGMPF \n \n$100 $90 $80 $70 $60 $50 $40 $30 $20 \n \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nStatistical Section \n \nPSERS \n \n$335 $315 $295 $275 $255 $235 $215 $195 $175 \n \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nLRS \n \n$650 \n \n$600 \n \n$550 \n \n$500 \n \n$450 \n \n$400 \n \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \n146 \n \n Annual Benefit \n \nThousands \n \nThousands \n \nERS Annual Benefit \n \n$1,500,000 \n \n$1,400,000 \n \n$1,300,000 \n \n$1,200,000 \n \n$1,100,000 \n \n$1,000,000 \n \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nGJRS Annual Benefit \n \n$27,000 \n \n$22,000 \n \n$17,000 \n \n$12,000 \n \n$7,000 \n \n$2,000 \n \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nGMPF Annual Benefit \n \n$1,200 \n \n$1,000 \n \n$800 \n \n$600 \n \n$400 \n \n$200 \n \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nThousands \n \nThousands \n \nThousands \n \nStatistical Section \n \nPSERS Annual Benefit \n$70,000 \n \n$60,000 \n \n$50,000 \n \n$40,000 \n \n$30,000 \n \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nLRS Annual Benefit \n \n$2,000 \n \n$1,800 \n \n$1,600 \n \n$1,400 \n \n$1,200 \n \n$1,000 \n \n2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \n147 \n \n Withdrawal Statistics \n \nStatistical Section \n \nERS Withdrawals \n \n9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 \n0 \n \n2010201120122013201420152016201720182019 \n \nERS Average Withdrawal \n \n$1,800 $1,700 $1,600 $1,500 $1,400 $1,300 $1,200 $1,100 $1,000 \n \n2010201120122013201420152016201720182019 \n \nPSERS Withdrawals \n \n7,000 6,000 5,000 4,000 3,000 2,000 1,000 \n0 \n \n2010201120122013201420152016201720182019 \n \nPSERS Average Withdrawal \n \n$250 $240 $230 $220 $210 $200 $190 $180 $170 $160 $150 \n \n2010 20112012 2013 2014 2015 2016 2017 2018 2019 \n \nGJRS Withdrawals \n14 12 10 \n8 6 4 2 0 \n2010 20112012 2013 2014 2015 2016 2017 2018 2019 \n \nGJRS Average Withdrawal \n \n$120,000 $110,000 $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 \n$0 \n \n2010201120122013201420152016201720182019 \n \nLRS Withdrawals \n14 12 10 \n8 6 4 2 0 \n2010 20112012 2013 2014 2015 2016 2017 2018 2019 \n \nLRS Average Withdrawal \n \n$14,000 $12,000 $10,000 \n$8,000 $6,000 $4,000 $2,000 \n$0 \n \n2010201120122013201420152016201720182019 \n \nNote: The GMPF Plan does not have a refund feature. 148 \n \nERS Annual Withdrawal (in thousands) \n \n$9,500 $9,000 $8,500 $8,000 $7,500 $7,000 $6,500 $6,000 $5,500 $5,000 \n \n2010201120122013201420152016201720182019 \n \nPSERS Annual Withdrawal (in thousands) \n \n$1,200 $1,000 \n$800 $600 $400 $200 \n$0 \n \n2010201120122013201420152016201720182019 \n \nGJRS Annual Withdrawal (in thousands) \n \n$900 $800 $700 $600 $500 $400 $300 $200 $100 \n$0 \n \n2010201120122013201420152016201720182019 \n \nLRS Annual Withdrawal (in thousands) \n \n$100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 \n \n2010201120122013201420152016201720182019 \n \n Statistical Section \n \nAverage Monthly Benefit Payment for New Retirees - ERS \n \nYears of Credited Service \n \n10-15 \n \n16-20 \n \n21-25 \n \n26-30 \n \nOver 30 \n \nTotal \n \n2010 \n \nAverage Monthly Benefit \n \n$ \n \nAverage Final Average Salary $ \n \nNumber of Retirees \n \n694.23 $ 3,023.45 $ \n391 \n \n1,086.00 $ 3,345.36 $ \n324 \n \n1,502.32 $ 3,555.21 $ \n332 \n \n1,849.65 $ 3,802.65 $ \n375 \n \n3,653.29 $ 4,588.73 $ \n981 \n \n2,247.01 3,900.93 \n2,403 \n \n2011 \n \nAverage Monthly Benefit \n \n$ \n \nAverage Final Average Salary $ \n \nNumber of Retirees \n \n734.74 $ 3,228.07 $ \n437 \n \n1,107.16 $ 3,205.88 $ \n322 \n \n1,504.51 $ 3,478.73 $ \n389 \n \n1,995.24 $ 3,762.88 $ \n461 \n \n3,575.54 $ 4,532.07 $ \n885 \n \n2,143.95 3,825.88 \n2,494 \n \n2012 \n \nAverage Monthly Benefit \n \n$ \n \nAverage Final Average Salary $ \n \nNumber of Retirees \n \n729.60 $ 3,040.00 $ \n518 \n \n1,247.16 $ 3,275.37 $ \n385 \n \n1,624.82 $ 3,388.85 $ \n414 \n \n2,125.35 $ 3,807.26 $ \n486 \n \n3,708.26 $ 4,702.47 $ \n776 \n \n2,109.84 3,775.94 \n2,578 \n \n2013 \n \nAverage Monthly Benefit \n \n$ \n \nAverage Final Average Salary $ \n \nNumber of Retirees \n \n836.73 $ 3,391.36 $ \n684 \n \n1,183.19 $ 3,339.84 $ \n453 \n \n1,650.14 $ 3,411.24 $ \n466 \n \n2,120.33 $ 3,765.16 $ \n780 \n \n3,487.96 $ 4,659.17 $ \n1,033 \n \n2,088.46 3,855.98 \n3,416 \n \n2014 \n \nAverage Monthly Benefit \n \n$ \n \nAverage Final Average Salary $ \n \nNumber of Retirees \n \n769.91 $ 3,309.44 $ \n483 \n \n1,232.07 $ 3,337.66 $ \n306 \n \n1,527.47 $ 3,263.54 $ \n311 \n \n2,057.32 $ 3,718.37 $ \n477 \n \n3,242.25 $ 4,486.34 $ \n542 \n \n1,870.02 3,699.86 \n2,119 \n \n2015 \n \nAverage Monthly Benefit \n \n$ \n \nAverage Final Average Salary $ \n \nNumber of Retirees \n \n750.98 $ 3,269.25 $ \n524 \n \n1,224.00 $ 3,443.88 $ \n316 \n \n1,620.88 $ 3,547.63 $ \n341 \n \n2,068.82 $ 3,750.99 $ \n623 \n \n3,074.69 $ 4,536.68 $ \n561 \n \n1,837.97 3,760.27 \n2,365 \n \n2016 \n \nAverage Monthly Benefit \n \n$ \n \nAverage Final Average Salary $ \n \nNumber of Retirees \n \n759.54 $ 3,189.20 $ \n559 \n \n1,224.52 $ 3,376.84 $ \n340 \n \n1,760.28 $ 3,657.08 $ \n330 \n \n2,171.75 $ 3,935.01 $ \n530 \n \n2,996.81 $ 4,618.83 $ \n466 \n \n1,783.98 3,764.34 \n2,225 \n \n2017 \n \nAverage Monthly Benefit \n \n$ \n \nAverage Final Average Salary $ \n \nNumber of Retirees \n \n796.76 $ 3,479.90 $ \n551 \n \n1,204.27 $ 3,405.67 $ \n395 \n \n1,786.30 $ 3,850.73 $ \n359 \n \n2,109.53 $ 3,813.78 $ \n453 \n \n2,870.19 $ 4,595.25 $ \n470 \n \n1,732.36 3,829.66 \n2,228 \n \n2018 \n \nAverage Monthly Benefit \n \n$ \n \nAverage Final Average Salary $ \n \nNumber of Retirees \n \n794.94 $ 3,505.83 $ \n570 \n \n1,318.26 $ 3,674.56 $ \n389 \n \n1,679.64 $ 3,707.56 $ \n306 \n \n2,302.80 $ 4,154.11 $ \n525 \n \n2,879.55 $ 4,638.01 $ \n476 \n \n1,791.49 3,950.06 \n2,266 \n \n2019 \n \nAverage Monthly Benefit \n \n$ \n \nAverage Final Average Salary $ \n \nNumber of Retirees \n \n806.32 $ 3,624.77 $ \n624 \n \n1,332.96 $ 3,867.03 $ \n436 \n \n1,888.94 $ 4,173.06 $ \n335 \n \n2,269.75 $ 4,178.96 $ \n461 \n \n3,089.58 $ 4,954.06 $ \n545 \n \n1,852.26 4,153.40 \n2,401 \n \n(continued) 149 \n \n Statistical Section \n \nAverage Monthly Benefit Payment for New Retirees - PSERS \n \n2010 Average Monthly Benefit Number of Retirees 2011 Average Monthly Benefit Number of Retirees 2012 Average Monthly Benefit Number of Retirees 2013 Average Monthly Benefit Number of Retirees 2014 Average Monthly Benefit Number of Retirees 2015 Average Monthly Benefit Number of Retirees 2016 Average Monthly Benefit Number of Retirees 2017 Average Monthly Benefit Number of Retirees 2018 Average Monthly Benefit Number of Retirees 2019 Average Monthly Benefit Number of Retirees \n \n10-15 \n \n16-20 \n \nYears of Credited Service \n \n21-25 \n \n26-30 \n \nOver 30 \n \nTotal \n \n$ 157.66 $ 224.92 $ 300.93 $ 359.24 $ 464.07 $ 243.41 \n \n448 \n \n200 \n \n162 \n \n76 \n \n105 \n \n1,001 \n \n$ 158.67 $ 227.68 $ 297.01 $ 374.01 $ 479.42 $ 245.04 \n \n463 \n \n200 \n \n126 \n \n79 \n \n114 \n \n982 \n \n$ 159.25 $ 236.46 $ 303.66 $ 362.36 $ 476.51 $ 238.59 \n \n480 \n \n182 \n \n136 \n \n74 \n \n87 \n \n958 \n \n$ 159.34 $ 232.10 $ 300.66 $ 360.75 $ 478.49 $ 245.72 \n \n580 \n \n255 \n \n175 \n \n113 \n \n133 \n \n1,256 \n \n$ 154.20 $ 227.41 $ 297.58 $ 345.98 $ 437.20 $ 233.71 \n \n603 \n \n268 \n \n147 \n \n121 \n \n131 \n \n1,270 \n \n$ 155.20 $ 225.02 $ 290.82 $ 360.11 $ 471.12 $ 233.25 \n \n568 \n \n254 \n \n166 \n \n105 \n \n99 \n \n1,192 \n \n$ 160.28 $ 232.09 $ 298.45 $ 358.11 $ 489.48 $ 242.18 \n \n529 \n \n273 \n \n454 \n \n103 \n \n103 \n \n1,162 \n \n$ 153.93 $ 226.90 $ 286.35 $ 348.16 $ 437.62 $ 228.12 \n \n515 \n \n230 \n \n126 \n \n78 \n \n104 \n \n1,053 \n \n$ 156.77 $ 228.48 $ 293.26 $ 363.46 $ 480.15 $ 238.68 \n \n508 \n \n241 \n \n148 \n \n91 \n \n102 \n \n1,090 \n \n$ 162.22 $ 225.88 $ 301.08 $ 366.63 $ 485.44 $ 245.95 \n \n486 \n \n266 \n \n162 \n \n109 \n \n100 \n \n1,123 \n \nNote: PSERS is not a final average pay plan. \n \n(continued) 150 \n \n Statistical Section \n \nAverage Monthly Benefit Payment for New Retirees - GJRS \n \nYears of Credited Service \n \n10-15 \n \n16-20 \n \n21-25 \n \n26-30 \n \nOver 30 \n \nTotal \n \n2010 \n \nAverage Monthly Benefit \n \n$ 6,337.43 $ 4,563.90 $ 7,643.86 $ 6,422.80 $ \n \nAverage Final Average Salary $ 10,490.01 $ 7,018.08 $ 10,490.01 $ 8,602.74 $ \n \nNumber of Retirees \n \n1 \n \n5 \n \n2 \n \n4 \n \n-- $ 6,242.00 \n \n-- $ 9,150.21 \n \n-- \n \n12 \n \n2011 \n \nAverage Monthly Benefit \n \n$ 4,632.24 $ 10,170.24 $ 9,799.81 $ 8,428.40 $ \n \nAverage Final Average Salary $ 9,211.23 $ 14,910.13 $ 13,052.66 $ 11,264.63 $ \n \nNumber of Retirees \n \n4 \n \n2 \n \n2 \n \n3 \n \n-- $ 7,614.02 \n \n-- $ 11,505.85 \n \n-- \n \n11 \n \n2012 \n \nAverage Monthly Benefit \n \n$ 4,204.95 $ 6,610.26 $ 7,565.84 $ 8,791.96 $ 7,831.84 $ 6,915.64 \n \nAverage Final Average Salary $ 7,788.39 $ 9,887.17 $ 10,361.29 $ 11,714.95 $ 10,490.01 $ 10,035.77 \n \nNumber of Retirees \n \n5 \n \n4 \n \n4 \n \n7 \n \n1 \n \n20 \n \n2013 \n \nAverage Monthly Benefit \n \n$ \n \nAverage Final Average Salary $ \n \nNumber of Retirees \n \n5,179.20 $ 9,271.48 $ \n8 \n \n5,844.29 $ 8,344.35 $ \n7 \n \n6,170.52 $ 7,954.14 $ \n \n8,370.72 $ 10,624.52 $ \n \n7 \n \n5 \n \n6,169.77 $ 8,864.27 $ \n7 \n \n6,132.24 9,010.27 \n34 \n \n2014 \n \nAverage Monthly Benefit \n \n$ \n \nAverage Final Average Salary $ \n \nNumber of Retirees \n \n2,989.92 $ 6,265.39 $ \n6 \n \n4,468.12 $ 7,772.95 $ \n2 \n \n6,496.50 $ 8,998.48 $ \n7 \n \n-- $ 2,703.82 $ 4,470.15 \n \n-- $ 4,289.57 $ 7,166.46 \n \n-- \n \n3 \n \n18 \n \n2015 \n \nAverage Monthly Benefit \n \n$ \n \nAverage Final Average Salary $ \n \nNumber of Retirees \n \n4,010.30 $ 6,937.39 $ \n2 \n \n6,317.44 $ 9,141.51 $ \n5 \n \n7,051.15 $ 7,589.28 $ \n \n9,751.01 $ 10,165.12 $ \n \n7 \n \n2 \n \n2,406.28 $ 3,222.98 $ \n1 \n \n6,267.69 8,905.45 \n17 \n \n2016 \n \nAverage Monthly Benefit \n \n$ \n \nAverage Final Average Salary $ \n \nNumber of Retirees \n \n-- $ 6,534.36 $ 8,121.58 $ \n \n-- $ 9,655.37 $ 11,204.04 $ \n \n-- \n \n6 \n \n2 \n \n-- $ 8,635.31 $ 7,120.51 \n \n-- $ 11,566.18 $ 10,211.83 \n \n-- \n \n1 \n \n9 \n \n2017 \n \nAverage Monthly Benefit \n \n$ 4,519.89 $ 6,690.09 $ 8,737.31 $ 5,895.46 $ 8,026.56 $ 6,964.60 \n \nAverage Final Average Salary $ 9,049.84 $ 9,833.21 $ 12,013.62 $ 7,896.41 $ 10,750.81 $ 10,232.13 \n \nNumber of Retirees \n \n10 \n \n18 \n \n13 \n \n4 \n \n10 \n \n55 \n \n2018 \n \nAverage Monthly Benefit \n \n$ 6,056.07 $ 7,565.45 $ 7,700.44 $ 7,979.26 $ \n \nAverage Final Average Salary $ 11,385.55 $ 11,096.74 $ 10,618.33 $ 10,687.46 $ \n \nNumber of Retirees \n \n3 \n \n5 \n \n7 \n \n2 \n \n-- $ 7,403.36 \n \n-- $ 10,902.57 \n \n-- \n \n17 \n \n2019 \n \nAverage Monthly Benefit \n \n$ 4,646.94 $ 6,293.69 $ 8,486.61 $ 7,795.06 $ 8,348.20 $ 6,878.64 \n \nAverage Final Average Salary $ 8,909.34 $ 9,278.67 $ 11,566.18 $ 11,014.40 $ 11,181.62 $ 10,204.03 \n \nNumber of Retirees \n \n9 \n \n10 \n \n7 \n \n8 \n \n5 \n \n39 \n \n(continued) 151 \n \n Statistical Section \n \nAverage Monthly Benefit Payment for New Retirees - LRS \n \n2010 Average Monthly Benefit Number of Retirees 2011 Average Monthly Benefit Number of Retirees 2012 Average Monthly Benefit Number of Retirees 2013 Average Monthly Benefit Number of Retirees 2014 Average Monthly Benefit Number of Retirees 2015 Average Monthly Benefit Number of Retirees 2016 Average Monthly Benefit Number of Retirees 2017 Average Monthly Benefit Number of Retirees 2018 Average Monthly Benefit Number of Retirees 2019 Average Monthly Benefit Number of Retirees \n \n8-14 \n \n15-19 \n \nYears of Credited Service \n \n20-24 \n \n25-29 \n \nOver 29 \n \nTotal \n \n$ 372.93 $ 558.00 $ \n \n8 \n \n1 \n \n--$ -- \n \n--$ -- \n \n-- $ 465.47 \n \n-- \n \n9 \n \n$ 341.79 $ 589.12 $ \n \n12 \n \n1 \n \n-- $ 843.26 $ 934.73 $ 456.99 \n \n-- \n \n2 \n \n1 \n \n16 \n \n$ 363.66 $ 549.08 $ \n \n4 \n \n2 \n \n--$ -- \n \n-- $ 1,286.43 $ 548.46 \n \n-- \n \n1 \n \n7 \n \n$ 308.15 $ 568.93 $ 670.94 $ \n \n14 \n \n4 \n \n2 \n \n-- $ 1,166.93 $ 497.03 \n \n-- \n \n3 \n \n23 \n \n$ 289.25 $ 480.21 $ \n \n3 \n \n1 \n \n--$ -- \n \n--$ -- \n \n-- $ 336.99 \n \n-- \n \n4 \n \n$ 341.03 $ 382.95 $ 642.84 $ \n \n5 \n \n1 \n \n3 \n \n-- $ 1,228.50 $ 588.51 \n \n-- \n \n2 \n \n11 \n \n$ 322.51 $ 524.09 $ \n \n5 \n \n2 \n \n--$ -- \n \n--$ -- \n \n-- $ 380.11 \n \n-- \n \n7 \n \n$ 362.52 $ 557.02 $ 740.79 $ \n \n6 \n \n3 \n \n2 \n \n--$ -- \n \n-- $ 484.34 \n \n-- \n \n11 \n \n$ 323.56 $ 476.35 $ 719.16 $ \n \n5 \n \n3 \n \n1 \n \n--$ -- \n \n-- $ 418.44 \n \n-- \n \n9 \n \n$ 358.24 $ 493.00 $ 658.44 $ 793.55 $ \n \n6 \n \n2 \n \n2 \n \n2 \n \n-- $ 503.28 \n \n-- \n \n12 \n \nNote: LRS is not a final average pay plan. \n \n(continued) 152 \n \n Statistical Section \n \nAverage Monthly Benefit Payment for New Retirees - GMPF \n \n2010 Average Monthly Benefit Number of Retirees 2011 Average Monthly Benefit Number of Retirees 2012 Average Monthly Benefit Number of Retirees 2013 Average Monthly Benefit Number of Retirees 2014 Average Monthly Benefit Number of Retirees 2015 Average Monthly Benefit Number of Retirees 2016 Average Monthly Benefit Number of Retirees 2017 Average Monthly Benefit Number of Retirees 2018 Average Monthly Benefit Number of Retirees 2019 Average Monthly Benefit Number of Retirees \nNote: GMPF is not a final average pay plan. \n \n20-25 \n \nYears of Credited Service \n \n26-30 \n \nOver 30 \n \nTotal \n \n$ 63.82 17 \n \n$ 85.83 18 \n \n$ 100.00 56 \n \n$ 90.44 91 \n \n$ 63.16 19 \n \n$ 91.47 17 \n \n$ 100.00 52 \n \n$ 90.40 88 \n \n$ 61.54 13 \n \n$ 90.33 15 \n \n$ 100.00 63 \n \n$ 92.83 90 \n \n$ 59.44 18 \n \n$ 89.55 22 \n \n$ 100.00 42 \n \n$ 88.29 82 \n \n$ 61.11 9 \n \n$ 90.53 19 \n \n$ 100.00 31 \n \n$ 91.02 59 \n \n$ 62.07 15 \n \n$ 94.10 16 \n \n$ 100.00 20 \n \n$ 86.99 51 \n \n$ 66.30 27 \n \n$ 89.29 14 \n \n$ 100.00 30 \n \n$ 85.07 71 \n \n$ 65.00 11 \n \n$ 89.05 21 \n \n$ 100.00 37 \n \n$ 91.09 69 \n \n$ 61.00 10 \n \n$ 87.39 23 \n \n$ 100.00 44 \n \n$ 91.17 77 \n \n$ 67.14 21 \n \n$ 91.11 36 \n \n$ 100.00 23 \n \n$ 87.38 80 \n \n(continued) 153 \n \n Retired Members by Retirement Type \nERS June 30, 2019 \n \nStatistical Section \n \nAmount of Monthly Benefit \n \n$ \n \n1 - 500 \n \n501 - 1,000 \n \n1,001 - 1,500 \n \n1,501 - 2,000 \n \n2,001 - 2,500 \n \n2,501 - 3,000 \n \n3,001 - 3,500 \n \n3,501 - 4,000 \n \n4,001 - 4,500 \n \n4,501 - 5,000 \n \n5,001 - 5,500 \n \n5,501 - 6,000 \n \nover 6,000 \n \nRetirement Type \n \nService Disability Survivor \n \n3,742 \n \n267 \n \n543 \n \n8,524 \n \n1,046 \n \n417 \n \n7,022 \n \n1,162 \n \n281 \n \n5,413 \n \n970 \n \n191 \n \n4,271 \n \n790 \n \n128 \n \n3,371 \n \n608 \n \n85 \n \n2,620 \n \n447 \n \n58 \n \n2,157 \n \n332 \n \n46 \n \n1,680 \n \n237 \n \n26 \n \n1,499 \n \n176 \n \n17 \n \n1,172 \n \n127 \n \n8 \n \n790 \n \n71 \n \n9 \n \n1,861 \n \n100 \n \n11 \n \nTotals \n \n44,122 \n \n6,333 \n \n1,820 \n \nPSERS June 30, 2019 \n \nAmount of Monthly Benefit \n \n$ \n \n1 - 100 \n \n101 - 200 \n \n201 - 300 \n \n301 - 400 \n \n401 - 500 \n \nover 500 \n \nRetirement Type \n \nService Disability Survivor \n \n84 \n \n6 \n \n232 \n \n6,108 \n \n34 \n \n185 \n \n5,239 \n \n260 \n \n51 \n \n2,808 \n \n382 \n \n12 \n \n1,719 \n \n273 \n \n5 \n \n1,384 \n \n207 \n \n1 \n \nTotals \n \n17,342 \n \n1,162 \n \n486 \n \n(continued) 154 \n \n Retired Members by Retirement Type \nGJRS June 30, 2019 \n \nStatistical Section \n \nAmount of Monthly Benefit \n$ 1 - 1,000 1,001 - 2,000 2,001 - 3,000 3,001 - 4,000 4,001 - 5,000 5,001 -,6,000 6,001 - 7,000 7,001 - 8,000 over 8,000 \nTotals \n \nRetirement Type \n \nService Disability Survivor \n \n19 \n \n-- \n \n2 \n \n19 \n \n-- \n \n8 \n \n27 \n \n-- \n \n5 \n \n39 \n \n-- \n \n2 \n \n26 \n \n2 \n \n2 \n \n16 \n \n-- \n \n-- \n \n38 \n \n-- \n \n-- \n \n71 \n \n-- \n \n-- \n \n124 \n \n-- \n \n-- \n \n379 \n \n2 \n \n19 \n \nLRS June 30, 2019 \n \nGMPF June 30, 2019 \n \nAmount of Monthly Benefit \n \n$ \n \n1 - 250 \n \n251 - 500 \n \n501 - 750 \n \n751 - 1,000 \n \nover 1,000 \n \nTotals \n \nRetirement Type \n \nService Disability Survivor \n \n20 \n \n-- \n \n-- \n \n121 \n \n-- \n \n11 \n \n66 \n \n-- \n \n3 \n \n25 \n \n-- \n \n4 \n \n17 \n \n-- \n \n2 \n \n249 \n \n-- \n \n20 \n \nAmount of Monthly Benefit \n \n$ \n \n1 - 49 \n \n50 - 100 \n \nover 100 \n \nRetirement Type Service \n-- 1,148 \n-- \n \nTotals \n \n1,148 \n \n155 \n \n Retired Members by Optional Form of Benefit \n \nStatistical Section \n \nERS June 30, 2019 \n \nAmount of Monthly Benefit \n \nForm of Benefit \n \nMaximum Plan Option 1 Option 2 Option 3 Option 4 Option 5A Option 5B \n \n$ \n \n1 - 500 \n \n501 - 1,000 \n \n1,001 - 1,500 \n \n1,501 - 2,000 \n \n2,001 - 2,500 \n \n2,501 - 3,000 \n \n3,001 - 3,500 \n \n3,501 - 4,000 \n \n4,001 - 4,500 \n \n4,501 - 5,000 \n \n5,001 - 5,500 \n \n5,501 - 6,000 \n \nover 6,000 \n \n1,332 \n \n416 1,260 \n \n412 \n \n905 \n \n165 \n \n62 \n \n4,225 1,234 1,961 \n \n661 1,281 \n \n417 \n \n208 \n \n3,443 1,123 1,452 \n \n646 1,077 \n \n475 \n \n249 \n \n2,697 1,001 \n \n961 \n \n567 \n \n716 \n \n332 \n \n300 \n \n2,093 \n \n738 \n \n657 \n \n486 \n \n603 \n \n335 \n \n277 \n \n1,618 \n \n554 \n \n485 \n \n345 \n \n648 \n \n197 \n \n217 \n \n1,126 \n \n399 \n \n333 \n \n311 \n \n622 \n \n164 \n \n170 \n \n865 \n \n269 \n \n270 \n \n213 \n \n649 \n \n127 \n \n142 \n \n613 \n \n194 \n \n174 \n \n173 \n \n612 \n \n56 \n \n121 \n \n487 \n \n119 \n \n136 \n \n176 \n \n626 \n \n61 \n \n87 \n \n321 \n \n111 \n \n94 \n \n112 \n \n576 \n \n44 \n \n49 \n \n204 \n \n46 \n \n62 \n \n114 \n \n368 \n \n27 \n \n49 \n \n422 \n \n115 \n \n158 \n \n217 \n \n944 \n \n40 \n \n76 \n \nTotals \n \n19,446 6,319 8,003 4,433 9,627 \n \n2,440 \n \n2,007 \n \nMaximum Plan Single life annuity \n \nOption 1 \n \nReduced single life annuity with a guarantee of the remainder of the annuity savings fund account (contributions and interest), if any, to be paid upon the retiree's death \n \nOption 2 \n \n100% joint and survivor annuity with a popup option upon divorce \n \nOption 3 \n \n50% joint and survivor annuity with a popup option upon divorce \n \nOption 4 \n \nVarious options, including a specified monthly amount payable to a beneficiary upon the retiree's death, several period certain annuities of varying length, and a five-year accelerated benefit \n \nOption 5A \n \n100% joint and survivor annuity with a popup option upon divorce or the death of the beneficiary before the retiree \n \nOption 5B \n \n50% joint and survivor annuity with a popup option upon divorce or the death of the beneficiary before the retiree \n \n(continued) 156 \n \n Retired Members by Optional Form of Benefit \n \nStatistical Section \n \nPSERS June 30, 2019 \n \nAmount of Monthly Benefit \n \n$ \n \n1 - 100 \n \n101 - 200 \n \n201 - 300 \n \n301 - 400 \n \n401 - 500 \n \nover 500 \n \nForm of Benefit \n \nMaximum Plan Option AA Option AB Option AC Option AD Option B \n \n-- \n \n40 \n \n249 \n \n4,246 \n \n1,172 \n \n387 \n \n4,472 \n \n582 \n \n204 \n \n2,648 \n \n335 \n \n88 \n \n1,762 \n \n136 \n \n43 \n \n1,468 \n \n67 \n \n29 \n \n7 \n \n19 \n \n7 \n \n8 \n \n139 \n \n375 \n \n6 \n \n68 \n \n218 \n \n6 \n \n28 \n \n97 \n \n4 \n \n8 \n \n44 \n \n5 \n \n1 \n \n22 \n \nTotals \n \n14,596 \n \n2,332 \n \n1,000 \n \n36 \n \n263 \n \n763 \n \nMaximum Plan Single life annuity \n \nOption AA \n \n100% joint and survivor annuity \n \nOption AB \n \n50% joint and survivor annuity \n \nOption AC \n \nJoint and survivor annuity with a specified monthly amount payable to a beneficiary \n \nOption AD \n \nJoint and survivor annuity with the amount payable to a beneficiary limited by the age difference between the retiree and the beneficiary \n \nOption B \n \nAnnuity for a guaranteed period of time (5, 10, 15, or 20 years). If retiree outlives guarantee period, there is no benefit due after retiree's death \n \n(continued) 157 \n \n Retired Members by Optional Form of Benefit \n \nStatistical Section \n \nGJRS June 30, 2019 \n \nAmount of Monthly Benefit \n \nSpousal Maximum Plan Coverage Option 1 \n \nForm of Benefit Option 2 Option 3 Option 4A Option 4B Option 4C \n \n$ 1 - 1000 \n \n1 \n \n1,001 - 2,000 \n \n3 \n \n2,001 - 3,000 \n \n4 \n \n3,001 - 4,000 \n \n3 \n \n4,001 - 5,000 \n \n5 \n \n5,001 - 6,000 \n \n7 \n \n6,001 - 7,000 \n \n8 \n \n7,000 - 8,000 \n \n23 \n \nover 8,000 \n \n24 \n \n20 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n24 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n28 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n38 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n25 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n8 \n \n1 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n30 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n48 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n100 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \nTotals \n \n78 \n \n321 \n \n1 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \nMaximum Plan \n \nSingle life annuity \n \nIndicates the member paid additional contributions to provide a 50% joint and survivor annuity at Spousal Coverage* retirement \n \nOption 1** \n \n100% joint and survivor annuity \n \nOption 2** \n \n66 % joint and survivor annuity \n \nOption 3** \n \n50% joint and survivor annuity \n \nOption 4A** \n \n100% joint and survivor annuity with a popup option upon death of beneficiary before the retiree \n \nOption 4B** \n \n66 % joint and survivor annuity with a popup option upon death of beneficiary before the retiree \n \nOption 4C** \n \n50% joint and survivor annuity with a popup option upon death of beneficiary before the retiree \n \n*Only available if membership start date prior to July 1, 2012 **Only available if membership start date on or after July 1, 2012 \n \n(continued) 158 \n \n Retired Members by Optional Form of Benefit \n \nStatistical Section \n \nLRS June 30, 2019 \n \nAmount of Monthly Benefit \n \n$ \n \n1 - 250 \n \n251 - 500 \n \n501 - 750 \n \n751 - 1,000 \n \nover 1,000 \n \nForm of Benefit \n \nMaximum Plan Option B1 Option B2 \n \n-- \n \n16 \n \n4 \n \n46 \n \n75 \n \n11 \n \n38 \n \n21 \n \n10 \n \n7 \n \n19 \n \n3 \n \n7 \n \n9 \n \n3 \n \nTotals \n \n98 \n \n140 \n \n31 \n \nMaximum Plan Single life annuity \n \nOption B1 \n \n100% joint and survivor annuity \n \nOption B2 \n \n50% joint and survivor annuity \n \nGMPF and SEAD - OPEB June 30, 2019 \nThe GMPF Plan provides a benefit only in one form, a life annuity. All 1,148 current retirees, therefore, have this same form of benefit. The SEAD-OPEB plan provides only a lump sum death benefit to a member's beneficiary(ies). \n \n159 \n \n Top Participatory Employers FY10 \n \nStatistical Section \n \nERS \n \nMember Count % of Total Plan \n \nDepartment of Corrections Department of Behavioral Health and Developmental Disability Department of Transportation Department of Labor Department of Juvenile Justice Department of Natural Resources Department of Human Services Department of Driver Services Department of Community Health Department of Revenue \n \n12,527 6,869 4,846 3,867 3,679 2,079 1,942 1,674 1,351 1,154 \n \n18.2% 10.0 \n7.1 5.7 5.4 3.0 2.8 2.4 2.0 1.7 \n \nTotal Top Employers Total ERS Member Count PSERS \nGwinnett County Schools Cobb County Schools Dekalb County Schools Clayton County Schools Muscogee County Schools Henry County Schools Cherokee County Schools Forsyth County Schools Richmond County Schools Paulding County Schools \n \n39,988 \n \n58.3 \n \n68,567 \n \n3,931 \n \n9.8 \n \n2,471 \n \n6.2 \n \n2,234 \n \n5.6 \n \n1,382 \n \n3.4 \n \n970 \n \n2.4 \n \n909 \n \n2.3 \n \n902 \n \n2.3 \n \n894 \n \n2.2 \n \n877 \n \n2.2 \n \n715 \n \n1.8 \n \nTotal Top Employers Total PSERS Member Count GJRS \nCouncil of Superior Court Judges Council of State Court Judges Prosecuting Attorney's Council Council of Juvenile Judges \n \n15,285 \n \n38.2 \n \n39,962 \n \n203 \n \n41.0 \n \n108 \n \n21.8 \n \n96 \n \n19.4 \n \n71 \n \n14.4 \n \nTotal Top Employers Total GJRS Member Count \n \n478 \n \n96.6 \n \n495 \n \nFY10 data is the first available. Data for SEAD-OPEB is not available. \n \n160 \n \n Top Participatory Employers FY19 \n \nStatistical Section \n \nERS \nDepartment of Corrections Department of Behavioral Health and Developmental Disability Department of Transportation Department of Human Services Department of Juvenile Justice Department of Community Supervision Department of Public Safety Department of Natural Resources Department of Labor Department of Revenue \n \nMember Count % of Total Plan \n \n9,072 4,093 3,956 3,502 3,118 1,979 1,871 1,743 \n999 975 \n \n15.32% 6.91 6.68 5.91 5.27 3.34 3.16 2.95 1.69 1.65 \n \nTotal Top Employers Total ERS Member Count PSERS \nGwinnett County Schools Cobb County Schools Dekalb County Schools Clayton County Schools Forsyth County Schools Chatham County Schools Houston County Schools Muscogee County Schools Richmond County Schools Cherokee County Schools \n \n31,308 59,207 \n3,503 2,266 2,158 1,201 \n978 930 774 737 732 709 \n \n52.88 \n10.08 6.52 6.21 3.45 2.81 2.67 2.23 2.12 2.10 2.04 \n \nTotal Top Employers Total PSERS Member Count GJRS \nCouncil of Superior Court Judges Council of State Court Judges Council of Juvenile Judges Solicitor General \n \n13,988 34,768 \n210 127 \n73 56 \n \n40.23 \n40.31 24.37 14.01 10.75 \n \nTotal Top Employers Total GJRS Member Count SEAD - OPEB \nDepartment of Corrections Department of Transportation Department of Human Services Department of Behavioral Health and Developmental Disability Department of Juvenile Justice Department of Natural Resources Department of Community Supervision Department of Public Safety Department of Labor Department of Community Health \n \n466 521 \n3,324 2,087 1,488 1,207 \n932 881 829 776 584 388 \n \n89.44 \n14.22 8.93 6.37 5.17 3.99 3.77 3.55 3.32 2.50 1.66 \n \nTotal Top Employers Total Active Member Count \n \n12,496 23,368 \n \n53.48 \n \n161 \n \n Statistical Section \n \nSchedule of Revenue and Expenses State Employees' Assurance Department Active Members Fund \n \nYear ended June 30, 2019 (In thousands) \nOperating revenue: Insurance premiums Total operating revenue \n \n2019 \n \n$ \n \n531 \n \n531 \n \n2018 \n540 540 \n \nOperating expenses: Death benefits Administrative expenses Total operating expenses Total operating loss \n \n3,424 80 \n3,504 (2,973) \n \n2,972 76 \n3,048 (2,508) \n \nNonoperating revenues (expenses): Allocation of investment income from pooled investment fund Investment expenses Total nonoperating revenues Change in net position \n \n19,708 (65) \n19,643 16,670 \n \n24,493 (64) \n24,429 21,921 \n \nTotal net position: Beginning of year End of year \n \n289,207 \n \n$ \n \n305,877 \n \n267,286 289,207 \n \n2017 \n599 599 \n4,019 64 \n4,083 (3,484) \n29,847 (62) \n29,785 26,301 \n240,985 267,286 \n \nIn fiscal year 2017, the System adopted the provisions of GASB Statement No. 74 and revised its accounting methodology with regard to the presentation of SEAD-Active, and began reporting it as a proprietary fund. In previous years it was reported as a fiduciary fund. Additional years will be displayed as they become available. \n \n162 \n \n Statistical Section \nSchedule of Membership State Employees' Assurance Department Active Members Fund \n \nFiscal Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \n \nCovered Lives 62,305 55,412 49,212 43,127 38,711 35,142 31,869 28,873 26,032 23,368 \n \n163 \n \n Statistical Data at June 30, 2019 \n \nStatistical Section \n \nSystem ERS \nPSERS GJRS \n \nNet Position $13.6 billion $941.6 million $479.4 million \n \nEmployer and Nonemployer Contributions \nOld Plan: 19.91% New Plan: 24.66% \nGSEPS 21.66% ($649.2 million) \n \nEmployee Contributions \nOld Plan: 6% (with 4.75% pickup) \nNew Plan: 1.25% GSEPS: 1.25% ($36.3 million) \n \nActive Members \nOld Plan: (0.07%) 39 New Plan: (39.15% 23,180) GSEPS: (60,78%) 35,988 \nTotal: 59,207 \n \n$30.3 million \n \n$36 yr prior July 1, 2012 $90 yr after July 1, 2012 ($2.3 million) \n \n34,768 \n \n7.83% ($5.3 million) \n \n7.5% +2.5% Spousal \n($5.5 million) \n \n521 \n \nInactives 60,574 49,213 64 \n \nRetirees \nTotal: 52,275 Service: 40,271 Beneficiary: 5,926 Disability: 5,478 Inv. Sep.: 446 Law. Enf.: 154 \n \nAnnual Payment $1.4 billion \n \n18,990 \n \n$63.6 million \n \n400 \n \n$27.5 million \n \nAverage Monthly Benefit $2,222 \n$282 \n$5,884 \n \nLRS \n \n$34.5 million \n \n0% (None) \n \n8.5% (with 4.75% pickup) \n($339 thousand) \n \n221 \n \n180 \n \n269 \n \n$1.9 million \n \n$532 \n \nGDCP \n \n$125.7 million \n \nNone \n \n7.5% ($14.6 million) \n \n13,025 \n \n112,934 \n \n2 \n \n$9.7 thousand \n \n$4,866 \n \nSCJRF \n \n$6 thousand \n \n$626 thousand \n \nNone \n \nNone \n \nNone \n \n7 \n \n$626 thousand \n \n$4,551 \n \nDARF SEAD GMPF \n \n$2 thousand \n \n$37 thousand \n \nNone \n \n$1.2 billion \n \n$5 thousand \n \nNew Plan: 0.25% Old Plan: 0.50% \n($3.3 million) \n \n$26.4 million \n \n$2.5 million \n \nNone \n \nNone \nNo. Insured: 23,368 \n13,715 \n \nNone 1,018 None \n \n3 \n \n$37 thousand \n \n$953 \n \nNo. Insured: 43,596 \n \nNo. of Claims: 1,113 \nAmt. Pd: $40.5 mil \n \nAverage Claim: $36,430 \n \n1,148 \n \n$1.2 million \n \n$91 \n \n164 \n \n "},{"id":"dlg_ggpd_y-ga-be400-b-pa1-b2018-belec-p-btext","title":"Comprehensive annual financial report, 2018 June 30","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":null,"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Employees' Retirement System"],"dc_date":["2018-06-30"],"dcterms_description":["Began with: 2010.","Report year ends June 30.","Description based on: 2010; title from PDF title page (Georgia Government Publications database, viewed September 21, 2016).","Latest issue consulted: 2014 (viewed September 21, 2016)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. Employees' Retirement System"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Employees' Retirement System of Georgia"],"dcterms_title":["Comprehensive annual financial report, 2018 June 30"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-be400-b-pa1-b2018-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-be400-b-pa1-b2018-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["annual reports"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"Employees' Retirement System of Georgia \nComprehensive Annual Financial Report \nFiscal Year Ended June 30, 2018 \nA component unit of the State of Georgia \nBuilding a Bridge to a More Comfortable Retirement \nTalmadge Memorial Bridge - Savannah \n2018 \n \n Our Mission \nOur mission is to be the guardian of the State of Georgia's retirement plans and promote a dignified retirement for the members, retirees, and their beneficiaries. Our vision is to demonstrate an unwavering commitment to delivering accurate and timely retirement benefits utilizing a knowledgeable staff and state-of-the-art technology to best serve the retirement needs of current and future members. \nOur Values \nOur Core Values are: Integrity Customer Service Operational Excellence Continuous Improvement and Innovation \n \nE RSGA \n \nServing those who serve Georgia \n \nEmployees' Retirement System of Georgia \n \n Employees' Retirement System of Georgia \nComprehensive Annual Financial Report \nFiscal Year Ended June 30, 2018 \nPrepared by the Financial Services Division \nBuilding a Bridge to a More Comfortable Retirement \nWatson Mill Bridge - Comer \nJames A. Potvin Executive Director \nA component unit of the State of Georgia \n \n Table of Contents \n \nIntroductory Section \n \nBoards of Trustees \n \n4 \n \nLetter of Transmittal \n \n5 \n \nCertificate of Achievement for Excellence in Financial 8 \n \nReporting \n \nPPCC Recognition Award for Funding \n \n9 \n \nAdministrative Staff and Organization \n \n10 \n \nOrganizational Chart \n \n11 \n \nFinancial Section \n \nIndependent Auditors' Report \n \n13 \n \nManagement's Discussion and Analysis (Unaudited) 15 \n \nBasic Financial Statements: \n \nCombining Statement of Fiduciary Net Position \n \n23 \n \nas of June 30, 2018 \n \nDefined Benefit Plans-Combining Statement of \n \n24 \n \nFiduciary Net Position as of June 30, 2018 \n \nCombining Statement of Changes in Fiduciary Net 25 \n \nPosition for the Year Ended June 30, 2018 \n \nDefined Benefit Plans-Combining Statement of \n \n26 \n \nChanges in Fiduciary Net Position for the Year \n \nEnded June 30, 2018 \n \nStatement of Net Position-State Employees' \n \n27 \n \nAssurance Department Active Members Fund \n \nStatement of Revenues, Expenses, and Changes 28 \n \nin Net Position-State Employees' Assurance \n \nDepartment Active Members Fund \n \nStatement of Cash Flows-State Employees' \n \n29 \n \nAssurance Department Active Members Fund \n \nNotes to Financial Statements \n \n30 \n \nRequired Supplementary Information (Unaudited): \n \nDefined Benefit Plans: \n \nSchedules of Employers' and Nonemployers' \n \n68 \n \nContributions \n \nSchedules of Employers' and Nonemployers' \n \n70 \n \nNet Pension/OPEB Liability and Related \n \nRatios \n \nSchedules of Changes in Employers' and \n \n72 \n \nNonemployers' Net Pension/OPEB Liability \n \nSchedule of Investment Returns \n \n78 \n \nSchedules of the System's Proportionate Share 79 \n \nof the Net OPEB Liability \n \nSchedules of the System's Contributions to OPEB 80 \n \nPlans \n \nNotes to Required Supplementary Information \n \n81 \n \n(Unaudited) \n \nAdditional Information: \n \nStatement of Changes in Assets and Liabilities- \n \n85 \n \nSurvivors Benefit Fund \n \nSchedule of Administrative Expenses- \n \n86 \n \nContributions and Expenses \n \nSchedule of Investment Expenses \n \n87 \n \nInvestment Section \n \nInvestment Overview \n \n89 \n \nPooled Investment Fund/Rates of Return \n \n90 \n \nAsset Allocation at Fair Value/Investment Summary \n \n91 \n \nSchedule of Fees and Commissions \n \n92 \n \nTwenty Largest Equity Holdings \n \n93 \n \nTop 10 Fixed Income Holdings \n \n94 \n \nActuarial Section \n \nActuary's Certification Letters \n \n96 \n \nSummary of Plan Provisions \n \n108 \n \nSummary of Actuarial Assumptions \n \n110 \n \nActive Members \n \n121 \n \nMember and Employer Contribution Rates \n \n123 \n \nDefined Benefit Plans-Schedules of Funding \n \n125 \n \nProgress \n \nSchedule of Retirees Added to and Removed \n \n127 \n \nfrom Rolls \n \nAnalysis of Change in Unfunded Accrued \n \n129 \n \nLiability (UAL) \n \nSolvency Test Results \n \n132 \n \nStatistical Section \n \nIntroduction Additions by Source-Contribution/Investment Income Deductions by Type Changes in Fiduciary Net Position Number of Retirees Average Monthly Payments to Retirees Annual Benefit Withdrawal Statistics Average Monthly Benefit Payment for New Retirees Retired Members by Retirement Type Retired Members by Optional Form of Benefit Top Participatory Employers Schedule of Revenue and Expenses-State \n \n135 136 139 142 144 145 146 147 148 153 155 159 161 \n \nEmployees' Assurance Department Active \n \nMembers Fund Schedule of Membership-State Employees' \n \n162 \n \nAssurance Department Active Members Fund Statistical Data at June 30, 2018 \n \n163 \n \n Introductory Section \nBuilding a Bridge to a More Comfortable Retirement \nSuspension Bridge over Tallulah Gorge - Rabun County \n \n Boards of Trustees \n \nIntroductory Section \n \nEmployees' Retirement System, Legislative Retirement System, Georgia Defined Contribution Plan, and Georgia Military Pension Fund \n \nLonice Barrett Chair \n \nEli P. Niepoky Vice-Chair \n \nHarold Reheis \n \nFrank F. Thach, Jr. \n \nSteven N. McCoy \n \nGreg S. Griffin \n \nShawn Ryan \n \nPublic School Employees Retirement System* \n \nState Employees' Assurance Department** \n \nMichael Lowe \n \nRichard Taylor \n \nMark Butler \n \nGeorgia Judicial Retirement System* \n \nVacant \n \nEllen S. Golden \n \nRon Mullins \n \nVacant \n \n*The PSERS and GJRS boards are comprised of the members of the ERS board and additional members shown under each plan. \n**SEAD -- ERS Board Members Greg S. Griffin, Steven N. McCoy, Lonice Barrett, and Shawn Ryan serve in addition to the two members shown above. \n4 \n \n Introductory Section \n \nLetter of Transmittal \n \nE RSGA \n \nServing those who serve Georgia \n \nEmployees' Retirement System of Georgia \n \nTwo Northside 75 Atlanta, GA 30318 \n \nDecember 21, 2018 \n \nI am pleased to present the Comprehensive Annual Financial Report of the retirement systems and programs administered by the Employees' Retirement System of Georgia (the System) for the fiscal year ended June 30, 2018. The management of the System is responsible for the accuracy, completeness, and fairness of the presentation, including all disclosures. It is to the best of our knowledge and belief that the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the System. \nProfile of the System \nThe System was established in 1949 by an Act of the Georgia General Assembly to provide benefits for all State employees. Plans administered by the System include the Employees' Retirement System (ERS), the Legislative Retirement System (LRS) established in 1979, the Public School Employees Retirement System (PSERS) established in 1969, the Georgia Defined Contribution Plan (GDCP) established in 1992, the Georgia Judicial Retirement System (GJRS) established in 1998, and the Georgia Military Pension Fund (GMPF) established in 2002. In addition, the System is responsible for administering a Group Term Life Insurance Plan (SEAD), the 457 Plan established in 1974, and the 401(k) Plan established in 1994. A summary of each plan can be found on pages 30 through 39 of this report. The investments of all plans are pooled together into one fund except for the three defined contribution (DC) plans, which are maintained individually. \nThe ERS, LRS, GDCP, GMPF, 401(k), and 457 plans are governed by a 7-member Board of Trustees (Board) made up of 3 ex-officio members, 1 governor-appointed member, and 3 Board-appointed members. PSERS has the same Board as ERS with 2 additional governorappointed members. GJRS has the same Board as ERS with 3 additional governor-appointed members. \n \n401(k) plan with a total investment balance of $992 million. The 457 plan had 12,882 participants with a total investment balance of $623 million. There are 475 participating employers from around the state in the 457 and 401(k) plans. \nLegislation \nIn the 2018 session, two Acts were passed by the General Assembly and signed by the Governor, which impact the System: \nAct 303 allows certain law enforcement members of ERS with at least ten years of service to purchase up to five years of certain non-vested local government law enforcement service, provided such members are not eligible to receive a present or future benefit from the local government, beginning July 1, 2018. Members must pay full actuarial cost for the service. \nAct 301 is the FY 2019 Appropriations Act and provides funding for an increase in the PSERS multiplier from $15.00 per year of service to $15.25 per year of service, beginning July 1, 2018. \nSummary of Financial Information \nThe management of the System is charged with the responsibility of maintaining a sound system of internal accounting controls. The objectives of such a system are to provide management with reasonable assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorizations, and that they are recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. The concept of reasonable assurance recognizes that first, the cost of a control should not exceed the benefits likely to be derived, and second, the evaluation of the cost and benefits requires estimates and judgments by management. \n \nAs of June 30, 2018, the System's defined benefit (DB) plans served a total of 110,007 active members and 71,072 retirees/beneficiaries from 698 employers around the state. There were 65,874 participants in the \n \nEven though there are inherent limitations in any system of internal control, the management of the System makes every effort to ensure that through systematic reporting and internal reviews, error or fraud \n \n5 \n \n(continued) \n \n Introductory Section \n \nLetter of Transmittal \n \nwould be quickly detected and corrected. \nPlease refer to the Management's Discussion and Analysis starting on page 15 of this report for an overview of the financial status of the System, including a summary of the System's Fiduciary Net Position, Changes in Fiduciary Net Position, and Asset Allocations. \nFor fiscal year 2018, the pooled investment fund generated a return of 9.2%. The fund continues to invest in a mix of high-quality bonds and stocks which allows the System to participate in rising markets while controlling the downside risks. This has proven to be a successful strategy for other markets and for the System. For further information on investments of the pooled fund, please refer to the Investment Section on pages 89 through 94 of this report. \nThe objective of the System's pension trust funds is to meet long-term benefit promises through contributions that remain approximately level as a percent of member payroll over time while maintaining an actuarially sound system. Historical information relating to the progress in meeting this objective is presented on pages 125 and 126. The latest actuarial valuations as of June 30, 2017 showed the funded ratio of two of the five defined benefit plans increasing. The following table shows the change in funding percentage for each of the pension systems: \n \nERS PSERS LRS GJRS GMPF \n \nFY2016 74.7% 84.4% \n126.0% 111.1% 48.2% \n \nFY2017 74.7% 83.6% \n128.2% 107.9% \n50.6% \n \nFurther information regarding the funding condition of the pension plans can be found in the Actuarial Section of this report, beginning on page 96. \n \nExcellence in Financial Reporting \nFor the eighth consecutive year, the Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Employees' Retirement System of Georgia for its comprehensive annual financial report for the fiscal year ended June 30, 2017. In order to be awarded a Certificate of Achievement, a government must publish an easily \n \nreadable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. \nA 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. \nInitiatives \nFunding Policies At a series of special meetings, the Boards of the various defined benefit systems approved a change to their respective funding policies. For the June 30, 2016 actuarial valuation, the assumed investment rate of return and discount rate were 7.5%. Effective with the June 30, 2017 valuation, the return assumption / discount rate will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, provided the actual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The reductions will continue until the rate of return assumption reaches 7.0%. \nThe actual rate of return for FY 2017 was 12.4%; therefore, for the June 30, 2017 valuation, the rate of return / discount rate was reduced to 7.4%. Similarly, the actual rate of return for FY 2018 was 9.2%; therefore, the June 30, 2018 valuations will use a new assumption of 7.3%. \nCommunications In early 2018, ERS hired our first dedicated Communications Director, with a goal of expanding our outreach and more effectively broadcasting our most important messaging around the state. \nThe first project we subsequently completed was the launch of a new version of our external website, ers.ga.gov. Besides being more aesthetically pleasing than the prior version, the new website has a much more intuitive organization, features new content, and resides on a platform that is much easier to update and maintain. We will continue to work over the next year to enhance our member education tools and materials on the new site. \nERS is also beginning to focus more on working with our employers to reach their employees with information earlier and more frequently. This is \n \n6 \n \n(continued) \n \n Introductory Section \n \nLetter of Transmittal \nespecially important early in their careers with the state, as our members need to take an active role in managing their defined contribution accounts in order to maximize their retirement savings. \nFinally, ERS is working on the creation of a Branding Guide, which will help us to present a consistent look externally via our various communication platforms. As a spinoff to that project, we are also beginning a comprehensive review of our forms, handbooks, and standard letters for consistency and clarity. \nInformation Technology Behind the scenes, our Applications Development team supported the rollout of the new external website by completing a comprehensive redesign and relaunch of the member portal desktop in the secure area of the website. Though it is not yet apparent to the user that any change occurred (other than some topical changes), the new desktop was a preliminary project that will pave the way for future enhancements to the functionality available through the member portal. The team also enhanced our customer service tools by integrating our CRM module, which had previously been a standalone application, into our PARIS pension administration system. This allows all Member Services staff (not just the Customer Care Group) to access complete call history information for our membership. \nOther Initiatives Effective January 2018, the Peach State Reserves 401(k) and 457 plans began accepting Roth contributions for the first time. We also enhanced our operational effectiveness by automating calculations related to anti-pension spiking restrictions that were \n \nlegislated several years ago, as well as calculations for members who transfer from the Teachers Retirement System of Georgia into the current ERS benefits tier, known as GSEPS. Finally, we improved our regression testing process for system enhancements by creating a special website for our Quality Assurance group to utilize. \nAcknowledgements \nThis report reflects the combined effort of our staff under the Board's leadership. Copies of this report, along with other valuable plan information, can be downloaded from the System's website. \nI would like to express my sincere thanks to the Boards of Trustees for their leadership and support. Many thanks are also extended to the offices of the Governor, Lieutenant Governor, members of the House and Senate Retirement Committees and their staff, members of the House and Senate, and the department officials whose support and assistance have helped ERS accomplish its mission over the years. \nRespectfully submitted, \nJames A. Potvin, Executive Director Employees' Retirement System of Georgia \n \n7 \n \n Introductory Section \n8 \n \n Introductory Section \nP P CC \nPublic Pension Coordinating Council Recognition Award for Funding \n2018 \nPresented to \nEmployees' Retirement System of Georgia \nIn recognition of meeting professional standards for plan funding as \nset forth in the Public Pension Standards. Presented by the Public Pension Coordinating Council, a confederation of \nNational Association of State Retirement Administrators (NASRA) National Conference on Public Employee Retirement Systems (NCPERS) \nNational Council on Teacher Retirement (NCTR) \nAlan H. Winkle Program Administrator \n9 \n \n Introductory Section \nAdministrative Staff and Organization \n \nJames A. Potvin Executive Director \n \nAngie Surface Deputy Director \n \nCharles W. Cary, Jr. CIO - Investment Services \n \nLaura L. Lanier Controller \n \nChris Hackett Director \nInformation Technology \n \nNicole Paisant Director \nHuman Resources \n \nSusan Anderson Chief Operating \nOfficer \n \nCarolyn Kaplan Director \nFinancial Mgmt Quality Assurance \n \nKelly Moody Director \nLegislative Affairs \n \nDanielle Jordan Director \nCommunications \n \nConsulting Services \nCavanaugh Macdonald Consulting, LLC - Actuary KPMG LLP - Auditor JPMorgan Chase Bank, N. A. - Defined Contribution \nCustodian Alight Solutions - Defined Contribution \nConsultant and Administrator \nInvestment Advisors* \nAlbritton Capital Management Baillie Gifford Overseas Limited Barrow, Hanley, Mewhinney \u0026 Strauss Cooke \u0026 Bieler Fisher Investments Mondrian Investment Partners Limited Sands Capital Management \n \nMedical Advisors \nHarold E. Sours, M.D., Atlanta, GA G. Lee Cross, M.D., Atlanta, GA Douglas Smith, M.D., Smyrna, GA William H. Biggers, M.D., Atlanta, GA Pedro F. Garcia, M.D., Atlanta, GA H. Rudolph Warren, M.D., Dunwoody, GA Quinton Pirkle, M.D., Atlanta, GA Marvin Bittinger, M.D., Gainesville, GA Joseph S. Wilkes, M.D., Sandy Springs, GA \n \n*See page 92 in the Investment Section for a summary of fees paid to Investment Advisors. \n \n10 \n \n Organizational Chart \n \nBoard of Trustees \n \nExecutive Director \n \nExecutive Support \n \n11 \n \nHuman Resources \n \nDeputy Director \n \nInvestment Services Division \n \nFinancial Services Division \n \nInformation Technology \nDivision \n \nChief Operating \nOfficer \n \nLegislative Affairs \n \nCommunications \n \nFinancial Management \nDivision \n \nQuality Assurance \nDivision \n \nPeach State Reserves \n \nOffice Administration \n \nMember Services Division \n \nIntroductory Section \n \n Financial Section \nBuilding a Bridge to a More Comfortable Retirement \nRail Bridge over Chattahoochee River - Metro Atlanta \n \n Financial Section \n \nKPMG LLP Suite 2000 303 Peachtree Street, NE Atlanta, GA 30308-3210 \n \nIndependent Auditors' Report \n \nThe Board of Trustees Employees' Retirement System of Georgia: \n \nReport on the Financial Statements We have audited the accompanying financial statements of the fiduciary activities and the proprietary activity of the Employees' Retirement System of Georgia (the System), a component unit of the State of Georgia, as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the System's basic financial statements as listed in the table of contents. \nManagement's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \nAuditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. \nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes \n \nevaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nOpinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the fiduciary activities and proprietary activity of the System as of June 30, 2018, and the respective changes in financial position and where applicable, cash flows thereof, for the year then ended in accordance with U.S. generally accepted accounting principles. \nEmphasis of Matter As discussed in note 3(h) to the basic financial statements, the System adopted, in 2018, Governmental Accounting Standards Board Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Our opinions are not modified with respect to this matter. \nOther Matters Required Supplementary Information U.S. generally accepted accounting principles require that the management's discussion and analysis, schedules of employers' and nonemployers' contributions  defined benefit plans, schedules of employers' and nonemployers' net pension/OPEB liability and related ratios  defined benefit plans, schedules of changes in employers' and nonemployers' net pension/OPEB liability  defined benefit plans, schedule of investment returns, schedules of the System's proportionate share of the Net OPEB Liability, and schedules of the System's contributions to OPEB plans on pages 1522 and 6880, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential \n \n(continued) 13 \n \n Financial Section \n \npart of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \nSupplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the System's basic financial statements. The Survivors Benefit Fund statement of changes in assets and liabilities and schedule of administrative expenses contributions and expenses are presented for purposes of additional analysis and are not a required part of the basic financial statements. \nThe Survivors Benefit Fund statement of changes in assets and liabilities and schedules of administrative expenses  contributions and expenses and investment expenses are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures \n \nin accordance with auditing standards generally accepted in the United States of America. In our opinion, the Survivors Benefit Fund statement of changes in assets and liabilities and the schedules of administrative expenses  contributions and expenses and investment expeses are fairly stated in all material respects in relation to the basic financial statements as a whole. \nThe Introductory, Investment, Actuarial, and Statistical sections have not be subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opion or provide an assurance on them. \nOther Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 5, 2018 on our consideration of the System's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the System's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the System's internal control over financial reporting and compliance. \nAtlanta, GA October 5, 2018 except for the Introductory, Investment, Actuarial, and Statistical sections and the Schedule of Investment Expenses, which are as of December 21, 2018. \n \n14 \n \n Management's Discussion and Analysis (Unaudited) June 30, 2018 \n \nFinancial Section \n \nThis section provides a discussion and analysis of the financial performance of the Employees' Retirement System of Georgia (the System) for the year ended June 30, 2018. The discussion and analysis of the System's financial performance is within the context of the accompanying basic financial statements, notes to the financial statements, required supplementary schedules, and additional information following this section. \nThe System is responsible for administering a cost-sharing, multiple-employer defined benefit pension plan for various employer agencies of Georgia, along with six other defined benefit pension plans, a defined benefit OPEB plan, three defined contribution plans, and an agency fund, which comprise the fiduciary funds. The System is also responsible for administering an enterprise fund, which comprises the proprietary fund. \nThe defined benefit pension plans include: \n Employees' Retirement System (ERS)  Public School Employees Retirement System (PSERS)  Legislative Retirement System (LRS)  Georgia Judicial Retirement System (GJRS)  Georgia Military Pension Fund (GMPF)  Superior Court Judges Retirement Fund (SCJRF)  District Attorneys Retirement Fund (DARF) \nThe defined benefit OPEB plan consists of the State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEAD-OPEB). \nThe defined contribution retirement plans include: \n Georgia Defined Contribution Plan (GDCP)  State of Georgia Employees' Qualified Trust Deferred Compensation Plan (401(k) Plan)  State of Georgia Employees' Deferred Compensation Plan (457 Plan) \nThe agency fund consists of the Survivors Benefit Fund (SBF). \nThe enterprise fund consists of the State Employees' Assurance Department Active Members Fund (SEAD-Active). \nOverview of Financial Statements \nA fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The System administers two categories of funds: fiduciary funds and a proprietary fund. Information related to the financial statements of the funds is presented in the notes to the financial statements. \nFiduciary funds are used to account for resources held for the benefit of parties outside of the System. The primary focus of the System's fiduciary funds is the accumulation of resources for and the payment of pension and OPEB benefits. The System maintains four types of fiduciary funds: (1) defined benefit pension trust funds which are used to report resources held in trust for pensions for retirees and beneficiaries covered by ERS, PSERS, LRS, GJRS, GMPF, SCJRF, and DARF (2) a defined benefit OPEB trust fund which is used to report resources held in trust for other postemployment benefits of retirees and beneficiaries of SEAD-OPEB (3) defined contribution pension trust funds which are used to accumulate contributions and earnings in the accounts of participants covered by GDCP, the 401(k) Plan, and the 457 Plan, and (4) an agency fund which is used to report resources held by the SBF in a custodial capacity for other plans. \nProprietary funds, which include enterprise and internal services funds, are used to account for the System's activities that are similar to private-sector businesses. The System maintains one proprietary fund, an enterprise fund. The primary focus of the System's enterprise fund is the accumulation of resources for, and payment of, group term life insurance benefits for active members of ERS, LRS, and GJRS covered by SEAD-Active. \n \n(continued) 15 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \nThe basic financial statements comprise statements for both fiduciary and proprietary funds. The fiduciary fund financial statements include (1) Combining Statement of Fiduciary Net Position (2) Defined Benefit Plans  Combining Statement of Fiduciary Net Position (3) Combining Statement of Changes in Fiduciary Net Position, and (4) Defined Benefit Plans  Combining Statement of Changes in Fiduciary Net Position. The proprietary fund financial statements include (1) Statement of Net Position (2) Statement of Revenues, Expenses, and Changes in Net Position and (3) Statement of Cash Flows. \nIn addition, the System presents six types of required supplementary schedules, which provide historical trend information about the plan. Four of the schedules are presented from the perspective of the System reporting as the plan and included (1) Schedules of Employers' and Nonemployers' Contributions (2) Schedules of Employers' and Nonemployers' Net Pension/OPEB Liability and Related Ratios (3) Schedules of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability and (4) Schedule of Investment Returns. Two of the schedules are presented from the perspective of the System reporting as the employer for its employees who participate in the State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEAD-OPEB) and the Georgia State Employees Postemployment Benefit Fund (State OPEB Fund) and include the (5) Schedules of the System's Proportionate Share of the Net OPEB Liability and (6) Schedules of the System's Contributions to OPEB Plans. The System also includes in this report additional information to supplement the financial statements. \nThe System prepares its financial statements on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board (GASB). These statements provide information about the System's overall financial status. \nFinancial Highlights \nThe highlights of the fiduciary funds of the System are as follows: \n The net position of the fiduciary funds increased by $760.0 million, or 4.4%, from $17.1 billion at June 30, 2017 to $17.9 billion at June 30, 2018. The increase in net position from 2017 to 2018 was primarily due to strong equity returns. \n For the year ended June 30, 2018, the total additions to net position were $2.4 billion compared to $2.8 billion for the year ended June 30, 2017. For the year ended June 30, 2018, the additions consisted of employer, nonemployer contributing entities (nonemployer), and member contributions totaling $924.6 million, insurance premiums of $3.6 million, net investment income of $1.5 billion, and participant fees of $1.7 million. \n Net investment income of $1.5 billion in 2018 (comprising interest and dividend income, the change in fair value of investments, and other, reduced by investment expenses) represents a decrease of $391.6 million, or 20.6%, compared to the net investment income of $1.9 billion for the year ended June 30, 2017. The change in net investment income was primarily due to equity returns moderating somewhat in 2018 compared to 2017. \n The total deductions from net position were $1.7 billion for the year ended June 30, 2018 and $1.6 billion for 2017. For the year ended June 30, 2018, the deductions consisted of benefit payments of $1.6 billion, refunds of $18.5 million, death benefits related to SEAD-OPEB of $36.2 million, and administrative expenses of $16.3 million. \nThe highlights of the proprietary fund of the System are as follows:  The net position of the proprietary fund increased by $21.9 million to $289.2 million at June 30, 2018 compared to $267.3 million at June 30, 2017. The increase in net position from 2017 to 2018 was primarily due to strong equity returns. \n For the year ended June 30, 2018, total operating loss was $2.5 million compared to $3.5 million for the year ended June 30, 2017. The decrease relates primarily to the decrease in the number of active members who received death benefits during the year. \n Investment income allocated from the pooled investment fund of $24.4 million in 2018 represents a decrease of $5.4 million, or 18.0%, compared to investment income allocated from the pooled investment fund of $29.8 million for the year ended June 30, 2017. The change in investment income allocated from the pooled investment fund was primarily due to equity returns moderating somewhat in 2018 compared to 2017. \n(continued) 16 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \nDescription of the Financial Statements \nFiduciary Funds \nThe Combining Statement of Fiduciary Net Position is the statement of financial position presenting information that includes the fiduciary funds' assets and liabilities, with the balance representing the Net Position Restricted for Pensions and OPEB. The investments of the funds in this statement are presented at fair value. This statement is presented on page 23. \nThe Combining Statement of Changes in Fiduciary Net Position reports how the fiduciary funds' net position changed during the fiscal year. The additions include contributions to the retirement plans from employers, nonemployers, and members; group term life insurance premiums; participant fees; and net investment income, which includes interest and dividends and the net increase in the fair value of investments, net of investment expenses. The deductions include benefit payments, life insurance death benefit payments, refunds of member contributions and interest, and administrative expenses. This statement is presented on page 25. \nThe Defined Benefit Plans' Combining Statement of Fiduciary Net Position and the Combining Statement of Changes in Fiduciary Net Position present the financial position and changes in financial position for each of the defined benefit plans administered by the System. These statements are on pages 24 and 26, respectively. \nProprietary Funds \nThe Statement of Net Position is the statement of financial position presenting information that includes the assets and liabilities, with the balance representing the net position. This statement is presented on page 27. \nThe Statement of Revenues, Expenses, and Changes in Net Position distinguishes operating revenues and expenses from nonoperating items. Principal operating revenues result from insurance premiums from members, while operating expenses result from death benefit payments and administrative expenses. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. This statement is presented on page 28. \nThe Statement of Cash Flows provides relevant information about cash receipts and cash payments during the year. When used in conjunction with related disclosures and information in the other financial statements, the statement provides relevant information about the plan's ability to generate future net cash flows, the plan's ability to meet its obligations as they come due, and presents the reasons for differences between operating income and associated cash receipts and payments. This statement is presented on page 29. \nNotes to Financial Statements are presented to provide the information necessary for a full understanding of the financial statements. The notes to the financial statements begin on page 30. \nRequired Supplementary Information begins on page 68. The required schedules are discussed as follows:  The Schedule of Employers' and Nonemployers' Contributions presents historical trend information for the last 10 consecutive fiscal years about the required contributions and the percent of required contributions actually contributed. \n The Schedule of Employers' and Nonemployers' Net Pension/OPEB Liability and Related Ratios presents the components of the net pension/OPEB liability as of the fiscal year end and the fiduciary net position as a percentage of the total pension/OPEB liability as of that date. This trend information will be accumulated to display a 10-year presentation. \n The Schedule of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability presents total net pension/OPEB liability and is measured as total pension/OPEB liability less the amount of the fiduciary net position. This trend information will be accumulated to display a 10-year presentation. \n The Schedule of Investment Returns presents historical trend information about the annual money-weighted rate of return on plan investments, net of plan investment expense. This trend information will be accumulated to display a 10-year presentation. \n(continued) 17 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) Required Supplementary Information (continued) \n The Schedule of the System's Proportionate Share of the Net OPEB Liability presents historical trend information about the System's proportionate share of the net OPEB liability (asset) for its employees who participate in the SEAD-OPEB plan and the State OPEB Fund. This trend information will be accumulated to display a 10-year presentation. \n The Schedule of the System's Contributions to OPEB Plans presents historical trend information about the System's contributions for its employees who participate in the SEAD-OPEB plan and the State OPEB Fund. This trend information will be accumulated to display a 10-year presentation. \nThree of the required schedules above, the Schedules of Employers' and Nonemployers' Contributions, the Schedules of Employers' and Nonemployers' Net Pension/OPEB Liability and Related Ratios, and the Schedules of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability are applicable to five of the defined benefit pension plans (ERS, PSERS, LRS, GJRS, and GMPF) and the defined benefit OPEB plan (SEAD-OPEB). Notes to Required Supplementary Information are presented to provide the information necessary for a full understanding of the supplementary schedules. The notes to required supplementary information begin on page 81. Additional information is presented, beginning on page 85, and includes the Statement of Changes in Assets and Liabilities for the Survivors Benefit Fund which presents additions to and deductions from the fund, the Schedule of Administrative Expenses  Contributions and Expenses which presents the expenses incurred in the administration of the plans and funds, and the contributions from each plan and fund to provide for these expenses, and the Schedule of Investment Expenses which presents the investment advisor, custodial, and miscellaneous fees. \n(continued) 18 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) Financial Analysis of the System \nA summary of the System's net position of the fiduciary funds at June 30, 2018 is as follows (dollars in thousands): \n \nNet position \n \nAssets: Cash, cash equivalents, and receivables Investments Capital assets, net Net OPEB asset Total assets \nDeferred outflows of resources \n \n2018 \n \n$ \n \n366,532 \n \n18,000,993 \n \n6,738 \n \n501 \n \n18,374,764 \n \n938 \n \nLiabilities: \n \nDue to brokers, accounts payable, and insurance premiums payable \n \n30,882 \n \nDue to other funds/plans and participating systems \n \n437,628 \n \nNet OPEB liability \n \n7,571 \n \nTotal liabilities \n \n476,081 \n \nDeferred inflows of resources \n \n701 \n \nNet position, as restated (Note 3(h)) \n \n$ 17,898,920 \n \n2017 \n330,585 17,253,626 \n6,904 372 \n17,591,487 926 \n41,428 403,237 \n8,792 453,457 \n-- 17,138,956 \n \nAmount change \n \nPercentage change \n \n35,947) 747,367) \n(166) 129) 783,277) \n12) \n \n10.9) % 4.3) (2.4) \n34.7) 4.5) 1.3) \n \n(10,546) 34,391) (1,221) 22,624) \n701) 759,964) \n \n(25.5) 8.5) \n(13.9) 5.0) \n100.0) 4.4) ) \n \nA summary of the System's net position of the proprietary fund at June 30, 2018 is as follows (dollars in thousands): \n \nAssets: Cash, cash equivalents, and receivables Investments Total assets \nLiabilities: Accounts payable and other Net position \n \nNet position \n \n2018 \n \n2017 \n \nAmount change \n \nPercentage change \n \n$ \n \n162 \n \n289,087 \n \n289,249 \n \n127 267,194 267,321 \n \n35) 21,893) 21,928) \n \n27.6) % 8.2) 8.2) \n \n42 \n \n$ \n \n289,207 \n \n35 267,286 \n \n7) 21,921) \n \n20.0) 8.2) ) \n \n(continued) 19 \n \n Management's Discussion and Analysis (Unaudited) \nThe following table presents the investment allocation at June 30, 2018 and 2017: \n \nFinancial Section \n \nAsset allocation at June 30 (in percentages): Equities: Domestic International Private equity Domestic obligations: U.S. Treasuries Corporate and other bonds International obligations: Governments Corporates Commingled funds \nAsset allocation at June 30 (in thousands): Equities: Domestic International Private equity Domestic obligations: U.S. Treasuries Corporate and other bonds International obligations: Governments Corporates Mutual funds Commingled funds \n \n2018 \n46.3 % 15.6 \n1.2 \n18.8 8.2 \n-- 1.1 8.8 \n \n2017 \n47.8 % 16.1 \n0.8 \n14.6 10.9 \n0.5 1.1 8.2 \n \n$ 8,332,421 2,807,854 221,904 \n \n$ 8,249,643 2,780,668 134,213 \n \n3,374,310 1,475,432 \n \n2,516,114 1,882,175 \n \n-- 190,353 \n7,228 1,591,491 $ 18,000,993 \n \n76,935 192,589 \n5,601 1,415,688 $ 17,253,626 \n \nThe total investment portfolio increased by $747.4 million, or 4.3%, from 2017, which is primarily due to strong equity market returns. \nInvestment performance is calculated using a time-weighted rate of return using the Daily Valuation Method. The time-weighted rate of return for the fiscal year ended June 30, 2018 was 9.2% with a 13.4% return for equities, a 18.5% return for private equity (inception date of October 3, 2013), and a (0.5)% return for fixed income. The five-year annualized rate of return at June 30, 2018 was 8.7%, with an 11.6% return for equities and a 1.8% return for fixed income. \n \n(continued) 20 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \nA money-weighted return is weighted by the amount of dollars in the fund at the beginning and end of the performance period. A money-weighted return is highly influenced by the timing of cash flows into and out of the fund and is a better measure of an entity or person who controls the cash flows into or out of the fund. The nondiscretionary cash flows for the plan, primarily contributions and benefit payments, have a considerable impact on the money-weighted returns of the portfolio. The money-weighted rate of return for the fiscal year ended June 30, 2018 was 0.6%, compared to 2.9% for the fiscal year ended June 30, 2017. \nA summary of the changes in the System's net position of the fiduciary funds for the year ended June 30, 2018 is as follows (dollars in thousands): \n \nChanges in net position \n \nAdditions: Employer contributions Nonemployer contributions Member contributions Participant fees Insurance premiums Net investment income Other Total additions \nDeductions: Benefit payments Refunds Death benefits Administrative expenses Total deductions Net increase (decrease) in net position \n \n2018 \n$ 690,516 43,982 \n190,091 1,744 3,599 \n1,509,803 15 \n2,439,750 \n1,608,691 18,538 36,249 16,308 \n1,679,786 $ 759,964 \n \n2017 \n657,190 40,960 \n170,608 1,584 3,793 \n1,901,409 15 \n2,775,559 \n1,574,118 21,849 36,058 16,487 \n1,648,512 1,127,047 \n \nAmount change \n \nPercentage change \n \n33,326 3,022 \n19,483 160 (194) \n(391,606) -- \n(335,809) \n \n5.1 % 7.4 11.4 10.1 (5.1) (20.6) -- (12.1) \n \n34,573 (3,311) \n191 (179) 31,274 (367,083) \n \n2.2 (15.2) \n0.5 (1.1) 1.9 (32.6) \n \nAdditions  The System accumulates resources needed to fund benefit payments through contributions and returns on invested funds. In fiscal year 2018, total contributions increased $55.8 million, or 6.4%, primarily because of an increase in the number of active members coupled with modest overall salary increases. Net investment income decreased by $391.6 million, or 20.6%, due primarily to equity returns moderating somewhat in fiscal year 2018 compared to 2017. \nDeductions  For fiscal year 2018, total deductions increased $31.3 million, or 1.9%, primarily because of an increase of $34.6 million, or 2.2%, in benefit payments. Pension benefit payments increased due to an increase in the number of retirees and beneficiaries receiving benefits in 2018 in addition to cost of living adjustments of 1.5% for LRS members and 2% for JRS members, and a one-time benefit payment of 3% for ERS members. Refunds decreased by $3.3 million, or 15.2%, which was primarily due to a decrease in the number of refunds processed during 2018. \n \n(continued) 21 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \nA summary of the changes in the System's net position of the proprietary fund for the year ended June 30, 2018 is as follows (dollars in thousands): \n \nOperating revenue: Insurance premiums Total operating revenue \nOperating expenses: Death benefits Administrative expenses Total operating expenses Total operating loss \nNonoperating revenue: Allocation of investment income from pooled investment fund, net Change in net position \n \nChanges in net position \n \n2018 \n \n2017 \n \nAmount change \n \nPercentage change \n \n$ \n \n540 \n \n599 \n \n540 \n \n599 \n \n(59) \n \n(9.8) % \n \n(59) \n \n(9.8) \n \n2,972 76 \n3,048 (2,508) \n \n4,019 64 \n4,083 (3,484) \n \n(1,047) 12 \n(1,035) 976 \n \n(26.1) 18.8 (25.3) (28.0) \n \n24,429 \n \n$ \n \n21,921 \n \n29,785 26,301 \n \n(5,356) (4,380) \n \n(18.0) (16.7) \n \nOperating and nonoperating revenue  The proprietary fund accumulates resources needed to fund death benefit payments through premiums earned and returns on invested funds. In fiscal year 2018, total premiums earned decreased $59.0 thousand, or 9.8%, primarily due to a decrease in the number of participating members allowed in the plan. Effective January 1, 2009, the plan was closed to new members. Allocation of investment income from the pooled investment fund, net of related expenses, decreased by $5.3 million, or 18%, primarily due to equity returns moderating somewhat in fiscal year 2018 compared to 2017. \nOperating expenses  For fiscal year 2018, death benefits decreased by $1.0 million, or 26.1%, which was primarily due to a decrease in the number of death claims processed during 2018. Administrative expenses increased by $12.0 thousand over the prior year, or 18.8%, primarily due to increased contractual services costs. \nRequests for Information \nThis financial report is designed to provide a general overview of the System's finances for all those with interest in the System's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to Employees' Retirement System of Georgia, Two Northside 75, Suite 300, Atlanta, GA 30318. \n \n22 \n \n Combining Statement of Fiduciary Net Position \nJune 30, 2018 (In thousands) \n \nAssets \nCash and cash equivalents \nReceivables: Contributions Interest and dividends Due from brokers for securities sold Other Unremitted insurance premiums \nTotal receivables \nInvestments - at fair value: Domestic obligations: U.S. Treasuries Corporate and other bonds International obligations: Corporates Equities: Domestic International Private equity Mutual funds Commingled funds Equity in pooled investment fund \nTotal investments \nCapital assets, net \nNet OPEB asset \nTotal assets \nDeferred outflows of resources \nLiabilities \nAccounts payable and other Due to brokers for securities purchased Insurance premiums payable Due to other funds/plans Due to participating systems Net OPEB Liability \nTotal liabilities \nDeferred inflows of resources \nNet position restricted for pensions and OPEB \n \nDefined Contribution Plans \n \nAgency Fund \n \nDefined Benefit Plans \n \n$ \n \n33,849 \n \nPooled Investment \nFund \n \nGeorgia Defined Contribution \nPlan \n \n203,702 \n \n16,023 \n \n401(k) Plan \n21,799 \n \n457 Plan \n1,164 \n \nSurvivors Benefit Fund \n91 \n \nEliminations  \n \n35,364 -- -- \n2,135 533 \n \n-- 46,365 \n22 -- -- \n \n921 \n \n3,638 \n \n502 \n \n-- \n \n363 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n545 \n \n49 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n38,032 \n \n46,387 \n \n1,284 \n \n4,183 \n \n551 \n \n-- \n \n    (533) \n(533) \n \n-- -- \n-- \n-- -- -- -- -- 16,096,708 \n16,096,708 6,738 501 \n16,175,828 938 \n \n3,311,274 1,440,709 \n190,353 \n8,317,533 2,806,432 \n221,904 -- -- -- \n16,288,205 -- -- \n16,538,294 -- \n \n22,596 -- \n605 -- -- \n7,571 \n30,772 701 \n$ 16,145,293 \n \n1,994 2,055 \n-- -- 16,534,245 -- \n16,538,294 -- \n \n \n63,036 34,723 \n-- \n-- -- -- -- -- -- \n97,759   \n115,066 -- \n \n-- -- \n-- \n8,208 705 -- \n3,280 980,157 \n-- \n992,350   \n1,018,332 -- \n \n-- -- \n-- \n6,680 717 -- \n3,948 611,334 \n-- \n622,679   \n624,394 -- \n \n-- -- \n-- \n-- -- -- -- -- 148,450 \n148,450 -- -- \n148,541 -- \n \n-- -- \n-- \n-- -- -- -- -- (16,245,158) \n(16,245,158)  -- \n(16,245,691) -- \n \n495 -- -- -- -- -- \n495 -- \n114,571 \n \n2,638 -- -- -- -- -- \n2,638 -- \n1,015,694 \n \n1,032 -- -- -- -- -- \n1,032 -- \n623,362 \n \n-- -- -- 148,541 -- -- \n148,541 -- \n \n \n-- -- (533) -- (16,245,158) -- \n(16,245,691) -- \n \n \nTotal 276,628 \n40,425 46,728 \n22 2,729 \n-- 89,904 \n3,374,310 1,475,432 \n190,353 \n8,332,421 2,807,854 \n221,904 7,228 \n1,591,491 -- \n18,000,993 6,738 501 \n18,374,764 938 \n28,755 2,055 72 \n148,541 289,087 \n7,571 476,081 \n701 \n17,898,920 \n \n23 \n \nFinancial Section \n \nSee accompanying notes to financial statements. \n \n Financial Section \nDefined Benefit Plans  Combining Statement of Fiduciary Net Position \nJune 30, 2018 (In thousands) \n24 \n \nAssets \nCash and cash equivalents \nReceivables: Contributions Interest and dividends Due from brokers for securities sold Other Unremitted insurance premiums \nTotal receivables \nInvestments - at fair value: Domestic obligations: U.S. Treasuries Corporate and other bonds International obligations: Corporates Equities: Domestic International Private equity Mutual funds Commingled funds Equity in pooled investment fund \nTotal investments \nCapital assets, net \nNet OPEB asset \nTotal assets \nDeferred outflows of resources \nLiabilities \nAccounts payable and other Due to brokers for securities purchased Insurance premiums payable Due to other funds/plans Due to participating systems Net OPEB Liability \nTotal liabilities \nDeferred inflows of resources \nNet position restricted for pensions and OPEB \n \nDefined Benefit Pension Plans \n \nDefined Benefit OPEB Plan \n \nEmployees' Retirement \nSystem \n \nPublic School Employees Retirement System \n \nLegislative Retirement \nSystem \n \nGeorgia Judicial Retirement System \n \n$ \n \n33,007 \n \n105 \n \n48 \n \n523 \n \nGeorgia Military Pension \nFund \n \nSuperior Court Judges \nRetirement Fund \n \nDistrict Attorneys Retirement \nFund \n \n8 \n \n17 \n \n3 \n \nState Employees' Assurance Department \nOPEB \n138 \n \n34,831 \n \n-- \n \n28 \n \n505 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n2,018 \n \n116 \n \n1 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n533 \n \n36,849 \n \n116 \n \n29 \n \n505 \n \n-- \n \n-- \n \n-- \n \n533 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n13,468,340 \n \n914,957 \n \n34,216 \n \n466,307 \n \n23,715 \n \n-- \n \n-- \n \n1,189,173 \n \n13,468,340 \n \n914,957 \n \n34,216 \n \n466,307 \n \n23,715 \n \n-- \n \n-- \n \n1,189,173 \n \n6,738 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n501 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n13,545,435 \n \n915,178 \n \n34,293 \n \n467,335 \n \n23,723 \n \n17 \n \n3 \n \n1,189,844 \n \n938 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n20,323 \n \n1,040 \n \n103 \n \n666 \n \n70 \n \n11 \n \n1 \n \n382 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n592 \n \n-- \n \n1 \n \n12 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n7,571 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n28,486 \n \n1,040 \n \n104 \n \n678 \n \n70 \n \n11 \n \n1 \n \n382 \n \n701 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n$ 13,517,186 \n \n914,138 \n \n34,189 \n \n466,657 \n \n23,653 \n \n6 \n \n2 \n \n1,189,462 \n \nDefined Benefit Plans \nTotal 33,849 \n35,364 -- -- \n2,135 533 \n38,032 \n-- -- \n-- \n-- -- -- -- -- 16,096,708 16,096,708 6,738 501 16,175,828 938 \n22,596 -- \n605 -- -- \n7,571 30,772 \n701 \n16,145,293 \n \nSee accompanying notes to financial statements. \n \n Combining Statement of Changes in Fiduciary Net Position \nYear ended June 30, 2018 (In thousands) \n \nDefined Contribution Plans \n \nAdditions: Contributions: Employer Nonemployer Member Participant fees Insurance premiums Administrative expense allotment \n \nDefined Benefit Plans \n \nPooled Investment \nFund \n \nGeorgia Defined Contribution \nPlan \n \n$ \n \n647,340 \n \n43,982 \n \n44,525 \n \n-- \n \n3,599 \n \n15 \n \n \n \n \n \n \n \n \n \n \n \n14,585 \n \n \n \n \n \n \n \n \n \n \n \n \n \nInvestment income: Net increase (decrease) in fair value of investments Interest and dividends Other Less investment expenses Allocation of investment income \nNet investment income (loss) \nTotal additions \n \n-- -- -- (9,691) 1,400,431 \n1,390,740 \n2,130,201 \n \n1,097,281 348,489 -- (8,347) \n(1,437,423) \n \n \n \n(2,403) 2,105 \n-- (58) -- \n(356) \n14,229 \n \n401(k) Plan \n43,176 -- \n110,848 1,744 -- -- \n75,052 8 \n578 (2,967) \n-- 72,671 228,439 \n \n457 Plan \n  20,133    \n46,811  \n520 (583) \n 46,748 66,881 \n \nDeductions: Benefit payments Refunds of member contributions and interest Death benefits Administrative expenses Total deductions \nNet increase in net position \nNet position restricted for pensions and OPEB: \nBeginning of year, as restated (Note 3(h)) \nEnd of year \n \n1,503,898 8,458 \n36,249 11,375 1,559,980 570,221 \n15,575,072 $ 16,145,293 \n \n \n \n-- \n \n \n \n10,080 \n \n \n \n-- \n \n \n \n852 \n \n \n \n10,932 \n \n \n \n3,297 \n \n64,103 -- -- \n3,639 \n67,742 \n160,697 \n \n40,690   \n442 \n41,132 \n25,749 \n \n \n \n111,274 \n \n \n \n114,571 \n \n854,997 1,015,694 \n \n597,613 623,362 \n \nTotal \n690,516 43,982 \n190,091 1,744 3,599 15 \n1,216,741 350,602 1,098 (21,646) (36,992) \n1,509,803 2,439,750 \n1,608,691 18,538 36,249 16,308 \n1,679,786 759,964 \n17,138,956 17,898,920 \n \n25 \n \nFinancial Section \n \nSee accompanying notes to financial statements. \n \n Financial Section \nDefined Benefit Plans  Combining Statement of Changes in Fiduciary Net Position \nYear ended June 30, 2018 (In thousands) \n26 \n \nAdditions: Contributions: Employer Nonemployer Member Participant fees Insurance premiums Administrative expense allotment \nInvestment income: Net increase (decrease) in fair value of investments Interest and dividends Other Less investment expenses Allocation of investment income \nNet investment income \nTotal additions \n \nEmployees' Retirement \nSystem \n \nDefined Benefit Pension Plans \n \nPublic School Employees Retirement System \n \nLegislative Retirement \nSystem \n \nGeorgia Judicial Retirement System \n \nGeorgia Military Pension \nFund \n \nDefined Benefit OPEB Plan \n \nSuperior Court Judges \nRetirement Fund \n \nDistrict Attorneys Retirement \nFund \n \nState Employees' Assurance Department \nOPEB \n \nDefined Benefit Plans \nTotal \n \n$ \n \n639,302 \n \n-- \n \n \n \n4,725 \n \n2,377 \n \n890 \n \n12,865 \n \n29,276 \n \n \n \n1,841 \n \n \n \n-- \n \n37,130 \n \n2,162 \n \n323 \n \n4,910 \n \n \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n-- \n \n10 \n \n-- \n \n \n \n \n \n \n \n2 \n \n-- \n \n-- \n \n \n \n \n \n \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n-- \n \n(8,518) \n \n(387) \n \n(15) \n \n(187) \n \n(6) \n \n-- \n \n1,174,531 \n \n78,805 \n \n2,977 \n \n40,064 \n \n1,934 \n \n-- \n \n1,166,013 \n \n78,418 \n \n2,962 \n \n39,877 \n \n1,928 \n \n \n \n1,855,320 \n \n109,856 \n \n3,285 \n \n51,353 \n \n4,305 \n \n892 \n \n46 \n \n \n \n647,340 \n \n \n \n \n \n43,982 \n \n \n \n \n \n44,525 \n \n \n \n \n \n \n \n \n \n3,599 \n \n3,599 \n \n3 \n \n \n \n15 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n(578) \n \n(9,691) \n \n \n \n102,120 \n \n1,400,431 \n \n \n \n101,542 \n \n1,390,740 \n \n49 \n \n105,141 \n \n2,130,201 \n \nDeductions: Benefit payments Refunds of member contributions and interest Death benefits Administrative expenses \nTotal deductions \nNet increase in net position \n \n1,413,298 \n \n61,820 \n \n1,772 \n \n24,934 \n \n1,138 \n \n890 \n \n46 \n \n \n \n1,503,898 \n \n7,585 \n \n701 \n \n22 \n \n150 \n \n \n \n-- \n \n \n \n \n \n8,458 \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n-- \n \n \n \n36,249 \n \n36,249 \n \n8,056 \n \n1,331 \n \n283 \n \n794 \n \n225 \n \n2 \n \n3 \n \n681 \n \n11,375 \n \n1,428,939 \n \n63,852 \n \n2,077 \n \n25,878 \n \n1,363 \n \n892 \n \n49 \n \n36,930 \n \n1,559,980 \n \n426,381 \n \n46,004 \n \n1,208 \n \n25,475 \n \n2,942 \n \n \n \n \n \n68,211 \n \n570,221 \n \nNet position restricted for pensions and OPEB: \n \nBeginning of year, as restated (Note 3(h)) \n \n13,090,805 \n \n868,134 \n \n32,981 \n \n441,182 \n \n20,711 \n \n6 \n \n2 \n \n1,121,251 \n \n15,575,072 \n \nEnd of year \n \n$ 13,517,186 \n \n914,138 \n \n34,189 \n \n466,657 \n \n23,653 \n \n6 \n \n2 \n \n1,189,462 \n \n16,145,293 \n \nSee accompanying notes to financial statements. \n \n Statement of Net Position State Employees' Assurance Department Active Members Fund \nJune 30, 2018 (In thousands) \n \nFinancial Section \n \nAssets Cash and cash equivalents Receivables: Unremitted insurance premiums Investments - at fair value: Equity share of pooled investment fund Total assets \nLiabilities Accounts payable and other Total liabilities Total net position \nSee accompanying notes to financial statements. \n \n$ \n \n90 \n \n72 \n \n289,087 289,249 \n \n42 42 $ 289,207 \n \n27 \n \n Financial Section \nStatement of Revenues, Expenses, and Changes in Net Position State Employees' Assurance Department Active Members Fund \nYear ended June 30, 2018 (In thousands) \n \nOperating revenue: \n \nInsurance premiums \n \n$ \n \nTotal operating revenue \n \nOperating expenses: Death benefits Administrative expenses Total operating expenses Total operating loss \n \nNonoperating revenues (expenses): Allocation of investment income from pooled investment fund Investment expenses Total nonoperating revenues Change in net position \n \nTotal net position: \n \nBeginning of year \n \nEnd of year \n \n$ \n \n540 540 \n2,972 76 \n3,048 (2,508) \n24,493 (64) \n24,429 21,921 \n267,286 289,207 \n \nSee accompanying notes to financial statements. \n \n28 \n \n Statement of Cash Flows State Employees' Assurance Department Active Members Fund \nYear ended June 30, 2018 (In thousands) \n \nFinancial Section \n \nCash flows from operating activities: Insurance premiums received Death benefits paid Administrative fees paid Net cash used in operating activities \nCash flows from investing activities: Withdrawals from pooled investment fund Investment expenses paid Net cash provided by investing activities Net increase in cash and cash equivalents \nCash and cash equivalents, beginning of year Cash and cash equivalents, end of year \nReconciliation of operating loss to net cash used in operating activities: Operating loss Changes in assets and liabilities: Accounts payable and other Net cash used in operating activities \nSee accompanying notes to financial statements. \n \n$ \n \n540 \n \n(2,972) \n \n(69) \n \n(2,501) \n \n2,600 (64) \n2,536 35 \n \n55 \n \n$ \n \n90 \n \n$ \n \n(2,508) \n \n7 \n \n$ \n \n(2,501) \n \n29 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \n(1) General \nThe accompanying basic financial statements of the Employees' Retirement System of Georgia, including all plans and funds administered by the Employees' Retirement System of Georgia (collectively, the System), comprises the Employees' Retirement System of Georgia (ERS), Public School Employees Retirement System (PSERS), Legislative Retirement System (LRS), Georgia Judicial Retirement System (GJRS), Georgia Military Pension Fund (GMPF), Superior Court Judges Retirement Fund (SCJRF), District Attorneys Retirement Fund (DARF), State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEAD-OPEB), Georgia Defined Contribution Plan (GDCP), State of Georgia Employees' Qualified Trust Deferred Compensation Plan (401(k) Plan), State of Georgia Employees' Deferred Compensation Plan (457 Plan), Survivors Benefit Fund (SBF), and State Employees' Assurance Department Active Members Fund (SEAD-Active). All significant transactions among the various systems, departments, and funds have been eliminated. The Boards of Trustees, comprising active and retired members, ex officio state employees, and appointees by the Governor, are ultimately responsible for the administration of the System. \n(2) Authorizing Legislation and Plan Descriptions \nEach plan and fund, including benefit and contribution provisions, was established and can be amended by state law. The following summarizes authorizing legislation and the plan description of each retirement fund: \n(a) ERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees (ERS Board) and has the powers and privileges of a corporation. There were 419 employers and 1 nonemployer contributing entity participating in the plan during 2018. \nERS Membership as of June 30, 2018 \n \nTotal: 169,601 \nInactive members and beneficiaries currently receiving benefits Inactive members entitled to benefits but not yet receiving benefits Active plan members \n \n60,406 \n \n50,863 \n \n58,332 \n \nBenefits The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the Old Plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are New Plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \nUnder the Old Plan, the New Plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service, regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' \n(continued) 30 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nbenefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \nContributions and Vesting Member contributions under the Old Plan are 4% of annual compensation, up to $4,200, plus 6% of annual compensation in excess of $4,200. Under the Old Plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the Old Plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the New Plan and GSEPS are 1.25% of annual compensation. The state is required to contribute at a specified percentage of active member payrolls, determined annually by actuarial valuation. The state contributions are not at any time refundable to the member or his/her beneficiary. \nPursuant to The Official Code of Georgia Annotated (O.C.G.A.) 47-2-292, the employer contributions for local tax commissioners and their employees who took office or were employed prior to July 1, 2012 are funded by the State of Georgia on behalf of the local county employer. Pursuant to O.C.G.A. 47-2-290, the employer contribution for certain State Court employees is funded by the state on behalf of the local county employer. \nEmployer and nonemployer contributions as a percentage of covered payroll required for fiscal year 2018 were based on the June 30, 2015 actuarial valuation for the Old Plan, New Plan, and GSEPS, as follows: \n \nEmployer and nonemployer: Normal Employer paid for member Accrued liability \nTotal \n \nOld Plan \n1.24 % 4.75 18.70 24.69 % \n \nNew Plan \n5.99 %  \n18.70 24.69 % \n \nGSEPS \n2.96 % -- \n18.70 21.66 % \n \nMembers become vested after 10 years of membership service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \n(b) PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board, plus two additional trustees, administers PSERS (PSERS Board). There were 184 employers and 1 nonemployer contributing entity participating in the plan during 2018. \n \nPSERS Membership as of June 30, 2018 \n \nTotal: 101,801 \nInactive members and beneficiaries currently receiving benefits Inactive members entitled to benefits but not yet receiving benefits Active plan members \n \n34,956 \n \n18,492 \n \n48,353 \n \n(continued) 31 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nBenefits A member may retire and elect to receive normal monthly retirement benefits after completion of 10 years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of 10 years of service. \nUpon retirement, the member will receive a monthly benefit of $15.00, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. \nContributions and Vesting Individuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board. \nEmployer contributions required for the year ended June 30, 2018 were $780.92 per active member and were based on the June 30, 2015 actuarial valuation. \nMembers become vested after 10 years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \n(c) LRS is a single-employer defined benefit pension plan established by the Georgia General Assembly from 19671971, and later reestablished in 1979, for the purpose of providing retirement allowances for all members of the Georgia General Assembly. LRS is administered by the ERS Board. There was one employer in the plan for 2018. \nLRS Membership as of June 30, 2018 \n \nTotal: 647 \nInactive members and beneficiaries currently receiving benefits Inactive members entitled to benefits but not yet receiving benefits Active plan members \n \n222 267 \n158 \n \nBenefits A member's normal retirement is after eight years of creditable service and attainment of age 65, or eight years of membership service (four legislative terms) and attainment of age 62. A member may retire early and elect to receive a monthly retirement benefit after completion of eight years of membership service and attainment of age 60; however, the retirement benefit is reduced by 5% for each year the member is under age 62. \nUpon retirement, the member will receive a monthly service retirement allowance of $36, multiplied by the number of years of creditable service. Death benefits are also available through the plan. \nContributions and Vesting Member contributions are 8.5% of annual salary. The state pays member contributions in excess of 4.75% of annual compensation. Employer contributions are actuarially determined and approved and certified by the ERS Board. \n(continued) 32 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nThere were no employer contributions required for the year ended June 30, 2018 based on the June 30, 2015 actuarial valuation. \nMembers become vested after eight years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. \nHowever, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \n(d) GJRS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1998 for the purpose of providing retirement allowances for judges and solicitors generals of the state courts and juvenile court judges in Georgia, and their survivors and other beneficiaries, superior court judges of the State of Georgia, and district attorneys of the State of Georgia. \nThe GJRS was also created to serve the members and beneficiaries of the Trial Judges and Solicitors Retirement Fund, the Superior Court Judges Retirement System, and the District Attorneys Retirement System (collectively, the Predecessor Retirement Systems). As of June 30, 1998, any person who was an active, inactive, or retired member or beneficiary of the Predecessor Retirement Systems was transferred to GJRS in the same status effective July 1, 1998. All assets of the Predecessor Retirement Systems were transferred to GJRS as of July 1, 1998. The ERS Board and three additional trustees administer GJRS (GJRS Board). There were 93 employers and 1 nonemployer contributing entity participating in the plan during 2018. \nGJRS Membership as of June 30, 2018 \n \nTotal: 946 \nInactive members and beneficiaries currently receiving benefits Inactive members entitled to benefits but not yet receiving benefits Active plan members \n \n358 527 \n61 \n \nBenefits The normal retirement for GJRS is age 60, with 16 years of creditable service; however, a member may retire at age 60 with a minimum of 10 years of creditable service. \nAnnual retirement benefits paid to members are computed as 66% of state-paid salary at retirement for district attorneys and superior court judges and 66% of the average over 24 consecutive months for trial judges and solicitors, plus 1% for each year of credited service over 16 years, not to exceed 24 years. Early retirement benefits paid to members are computed as the pro rata portion of the normal retirement benefit, based on service not to exceed 16 years. Death, disability, and spousal benefits are also available. \nContributions and Vesting Members are required to contribute 7.5% of their annual salary. Those who became members prior to July 1, 2012 must also contribute an additional 2.5% of their annual salary if spousal benefit is elected. Employer contributions are actuarially determined and approved and certified by the GJRS Board. \nPursuant to O.C.G.A. 47-23-81, the employer contributions for state court judges and solicitors are funded by the State of Georgia on behalf of the local county employers and pursuant to O.C.G.A. 47-23-82, the employer contributions for juvenile court judges are funded by the state on behalf of local county employers. \n \n(continued) 33 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nEmployer and nonemployer contributions required for fiscal year 2018 were based on the June 30, 2015 actuarial valuation, as follows: \n \nEmployer and nonemployer: Normal Accrued liability \nTotal \n \n13.71 % (6.54) \n7.17 % \n \nMembers become vested after 10 years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \n \n(e) GMPF is a single-employer defined benefit pension plan established on July 1, 2002 by the Georgia General Assembly for the purpose of providing retirement allowances and other benefits for members of the Georgia National Guard (the National Guard). The ERS Board administers the GMPF. \nMembership As of June 30, 2018, GMPF had 1,076 retirees and beneficiaries currently receiving benefits. Active and inactive plan member information is maintained by one employer, the Georgia Department of Defense. \nBenefits A member becomes eligible for benefits upon attainment of age 60, with 20 or more years of creditable service (including at least 15 years of service as a member of the National Guard), having served at least 10 consecutive years as a member of the National Guard immediately prior to discharge, and having received an honorable discharge from the National Guard. \nThe retirement allowance is payable for life in the amount of $50 per month, plus $5 per month for each year of creditable service in excess of 20 years. The maximum benefit is $100 per month. \nContributions and Vesting Employer contributions are actuarially determined and approved and certified by the ERS Board. There are no member contributions required. \nEmployer contributions required for the year ended June 30, 2018 were $172.85 per active member and were based on the June 30, 2015 actuarial valuation. \nA member becomes vested after 20 years of creditable service (including at least 15 years of service as a member of the National Guard), having served at least 10 consecutive years as a member of the National Guard immediately prior to discharge, and having received an honorable discharge from the National Guard. \n \n(f) SCJRF is a single-employer defined benefit pension plan established by the Georgia General Assembly in 1945 for the purpose of providing retirement benefits to the superior court judges of the State of Georgia. SCJRF is directed by its own Board of Trustees (SCJRF Board). The ERS Board and SCJRF Board entered into a contract for ERS to administer the plan effective July 1, 1995. \nMembership As of June 30, 2018, SCJRF had 12 retirees and beneficiaries currently receiving benefits and no active members. No new members are allowed into SCJRF. \n \n(continued) 34 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nBenefits The normal retirement for SCJRF is age 68, with 19 years of creditable service, with a benefit of two-thirds the salary paid to superior court judges. A member may also retire at age 65, with a minimum of 10 years of creditable service, with a benefit of one-half the salary paid to superior court judges. Death, disability, and spousal benefits are also available. \nContributions and Vesting Employer contributions are not actuarially determined, but are provided on an as-needed basis to fund current benefits. \n(g) DARF is a multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1949 for the purpose of providing retirement benefits to the district attorneys of the state of Georgia. DARF is directed by its own Board of Trustees (DARF Board). The ERS Board and DARF Board entered into a contract for ERS to administer the plan effective July 1, 1995. \nMembership As of June 30, 2018, DARF had four retirees and beneficiaries currently receiving benefits and no active members. No new members are allowed into DARF. \nBenefits Persons appointed as district attorney emeritus shall receive an annual benefit of $15,000, or one-half of the state salary received by such person as a district attorney for the calendar year immediately prior to the person's retirement, whichever is greater. \nContributions and Vesting Employer contributions are not actuarially determined, but are provided on an as-needed basis to fund current benefits. \n(h) SEAD-OPEB is a cost-sharing multiple-employer defined benefit other postemployment benefit plan created in 2007 by the Georgia General Assembly to amend Title 47 of the O.C.G.A., relating to retirement, so as to establish a fund for the provision of term life insurance to retired and vested inactive members of ERS, LRS, and GJRS. Effective July 1, 2009, no newly hired members of any Georgia public retirement system are eligible for term life insurance under SEAD. The SEAD-OPEB trust fund accumulates the premiums received from the aforementioned retirement systems, including interest earned on deposits and investments of such payments from retired and vested inactive members. There were 459 employers and 1 nonemployer contributing entity participating in the plan during 2018. \n \nSEAD Membership as of June 30, 2018 \n \nTotal: 69,633 \nRetirees and beneficiaries Terminated employees Active plan members \n \n26,032 \n \n42,654 \n \n947 \n \nEmployee contribution rates as a percentage of member's salaries were appropriated for the fiscal year ended June 30, 2018 as follows: ERS Old Plan  0.45% and ERS New Plan, LRS, and GJRS  0.23%. ERS Old Plan members were hired prior to July 1, 1982 and New Plan members were hired on or after July 1, 1982, but prior to January 1, 2009. \n(continued) 35 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nGeorgia law provides that employee contributions to the plan shall be in an amount established by the Board of Trustees (SEAD Board) not to exceed one-half of 1% of the member's earnable compensation. There were no employer contributions required for the fiscal year ended June 30, 2018. \nAccording to the policy terms covering the lives of members, insurance coverage is provided on a monthly, renewable term basis, and no return premiums or cash value are earned. The net position represents the excess accumulation of investment income and premiums over benefit payments and expenses, and is held as a reserve for payment of death benefits under existing policies. \nThe amount of insurance for a retiree with creditable service prior to April 1, 1964 is the full amount of insurance under SEAD-Active in effect on the date of retirement. The amount of insurance for a service retiree with no creditable service prior to April 1, 1964 is 70% of the amount of insurance under SEAD-Active at age 60 or at termination, if earlier. Life insurance proceeds are paid in a lump sum to the beneficiary upon death of the retiree. \nAdministrative costs for the plan are determined based on the plan's share of overhead costs to accumulate and invest funds, actuarial services, and to process benefit payments to beneficiaries. Administrative fees are financed from the assets of the plan. \n(i) GDCP is a defined contribution plan established by the Georgia General Assembly in July 1992 for the purpose of providing retirement allowances for state employees who are not members of a public retirement or pension system and do not participate in Social Security. GDCP is administered by the ERS Board. There were 75 employers participating in the plan during 2018. There were 121,878 members as of June 30, 2018. \nBenefits A member may retire and elect to receive periodic payments after attainment of age 65. The payments will be based upon mortality tables and interest assumptions adopted by the ERS Board. If a terminated member has less than $5,000 credited to his/her account, the ERS Board has the option of requiring a lump-sum distribution to the member. Upon the death of a member, a lump-sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary. \nContributions and Vesting Members are required to contribute 7.5% of their annual salary and vest immediately in the plan upon contribution. There are no employer contributions. Earnings will be credited to each member's account as adopted by the ERS Board. Upon termination of employment, the amount of the member's account is refundable upon request by the member. \n(j) The 401(k) Plan was established by the State of Georgia Employee Benefit Plan Council in accordance with Georgia Law 1985, as amended, O.C.G.A, Sections 45-18-50 through 45-18-58, and Section 401(k) of the Internal Revenue Code (IRC). On October 1, 1994, activity commenced when the 401(k) Plan became available to employees of the State of Georgia Community Service Boards (CSBs). On December 1, 1998, the 401(k) Plan became available to employees of the Georgia Lottery Corporation (GLC). On July 1, 2005, the Plan became available to employees of Fayette County Board of Education; on July 1, 2006, the Plan became available to employees of Walton County Board of Education; on January 1, 2010, the Plan became available to employees of Henry County Board of Education; and on July 1, 2017, the Plan became available to employees of the Baldwin County Board of Education. \nEffective July 1, 1998, the State of Georgia Employee's Deferred Compensation Group Trust (the Master Trust) was formed for the State of Georgia Deferred Compensation Program to serve as the funding medium for the 401(k) Plan. At that time, the 401(k) Plan began operating on an employee elective deferral basis for all state employees working at least 1,000 hours in a 12-month period. All assets of the 401(k) Plan are held in trust for the exclusive benefit of the participants and their beneficiaries. The assets of the 401(k) Plan and the 457 Plan are commingled in the Master Trust with the respective trusts owning units of the Master Trust. Participant contributions are invested according to the participant's investment election. If the participant \n(continued) 36 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \ndoes not make an election, investments are automatically defaulted to a Lifecycle Fund based on the participant's date of birth. \nEffective July 1, 2005 (HB275), ERS became the trustee of the 401(k) Plan. Alight Solutions and JPMorgan Chase hold, administer, and invest the assets of the Master Trust. \nContributions and Vesting Participating CSBs, the GLC, and Walton and Henry County Boards of Education offer employer contributions, some matching, some automatic, and some a combination of both, to eligible employees at various rates (limited to a maximum of $270,000 base salary in calendar year 2017 and $275,000 in calendar year 2018). As of January 1, 2009, individual participants may defer up to 80% of eligible compensation, or up to limits prescribed by the IRC (whichever is less). \nEffective January 1, 2009, in accordance with O.C.G.A. 47-2-350 through 47-2-360, newly hired state employees, as well as rehired state employees who did not maintain eligibility for the ERS Old Plan or New Plan, are members of GSEPS. From January 1, 2009 to June 30, 2014, the GSEPS tier included automatic enrollment in the 401(k) Plan at a contribution rate of 1% of salary. Effective July 1, 2014, in accordance with HB764, the employee contribution rate for automatic enrollment increased from 1% to 5%. The state matches 100% of the employee's initial 1% contribution and 50% of contributions above 1% and up to 5%. Therefore, the state will match 3% of salary when an employee contributes at least 5% to the 401(k) Plan. Employee contributions greater than 5% of salary do not receive any additional matching funds. Plan participants who are not employees of the GLC, a CSB, Walton and Henry County Boards of Education, or who are not GSEPS eligible do not receive any employer contributions in their 401(k) Plan. \nAll employer contributions are subject to a vesting schedule, which determines eligibility to receive all or a portion of the employer contribution balance at the time of any distribution from the account after separation from all state service. Vesting is determined based on the following schedule: \n \nLess than 1 year 1 2 3 4 5 or more years \n \n--% 20 40 60 80 100 \n \nFor CSB/GLC participants whose services terminated prior to January 1, 2010 but after December 31, 2001, the following vesting schedule applies: \n \nLess than 2 years 2 3 4 5 6 or more years \n \n--% 20 40 60 80 100 \n \nFor CSB/GLC participants whose services terminated prior to January 1, 2002, the following vesting schedule applies: \n \nLess than 3 years 3 4 5 6 7 or more years \n \n--% 20 40 60 80 100 \n37 \n \n(continued) \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nEmployee contributions and earnings thereon are 100% vested at all times. The 401(k) Plan also allows participants to roll over amounts from other qualified plans to their respective account in the 401(k) Plan on approval by the 401(k) plan administrator. Such rollovers are 100% vested at the time of transfer. \nParticipation As of June 30, 2018, the 401(k) Plan had 65,874 participants with a balance. A total of 470 employers transmitted contributions to the plan during 2018. \nDistributions The participant may receive the value of his or her vested accounts upon attaining age 59.5, qualifying financial hardship, or 30 days after retirement or other termination of service (employer contribution balances are only eligible for distribution upon separation from service). Upon the death of a participant, his or her beneficiary shall be entitled to the vested value of his or her accounts. Employees who die while actively employed and eligible for 401(k) Plan employer matching contributions become fully vested in employer contributions upon death. Distributions are made in installments or in a lump sum. \n(k) The 457 Plan was established by the State Personnel Board in accordance with Georgia Law 1974, page 198 as amended, O.C.G.A., Sections 45-18-30 through 45-18-36, and Section 457 of the IRC. The 457 Plan is available to employees of the State of Georgia and county health departments and permits such employees to defer a portion of their annual salary until future years. Employee contributions and earnings thereon are 100% vested at all times. \nEffective July 1, 1998, the Master Trust was formed for the State of Georgia Deferred Compensation Program to serve as the funding medium for the 457 Plan. All assets of the 457 Plan are held in trust for the exclusive benefit of the participants and their beneficiaries. The assets of the 457 Plan and the 401(k) Plan are commingled in the Master Trust with the respective trusts owning units of the Master Trust. Participant contributions are invested according to the participant's investment election. If the participant does not make an election, investments are automatically defaulted to a Lifecycle Fund based on the participant's date of birth. \nEffective July 1, 2005 (HB275), ERS became the trustee of the 457 Plan. Alight Solutions and JPMorgan Chase hold, administer, and invest the assets of the Master Trust. \nParticipation As of June 30, 2018, the 457 Plan had 12,882 participants with a balance. A total of 306 employers transmitted contributions to the plan during 2018. \nDistributions The balance in the employee's account in the 457 Plan is not available to the employee until age 70.5, termination, retirement, death, or unforeseeable emergency, as defined in the 457 Plan. Upon the death of a participant, his or her beneficiary shall be entitled to the vested value of his or her accounts. Distributions are made in installments or in a lump sum. \n(l) SBF was established under O.C.G.A. 47-2-128(c)(3) within the ERS trust solely for maintaining group term life insurance coverage for members of the plan. All assets of SBF are therefore limited to the payment of benefits and expenses for such coverage and cannot be used to pay pension benefits of ERS. SBF is shown on the financial statements separately as an agency fund to reflect ERS's custodial responsibility and to account for assets held for distribution to SEAD-Active and SEAD-OPEB. SBF may only be used to pay benefits or expenses of SEAD-OPEB or SEAD-Active with authorization by the ERS Board. An actuarial valuation is not prepared, as there are no funding requirements. \n \n(continued) 38 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \n(m) SEAD-Active is a cost-sharing multiple-employer life insurance plan created in 2007 by the Georgia General Assembly to amend Title 47 of the O.C.G.A., relating to retirement, so as to establish a fund for the provision of term life insurance to active members of ERS, LRS, and GJRS. Effective July 1, 2009, no newly hired members of any Georgia public retirement system are eligible for term life insurance under SEAD. The SEAD-Active fund accumulates the premiums received from the aforementioned retirement systems, including interest earned on deposits and investments of such payments from active members. There were 459 employers and 1 nonemployer contributing entity participating in the plan during 2018. As of June 30, 2018, there were 26,032 active plan members in SEAD-Active. \nEmployee contribution rates as a percentage of member's salaries were appropriated for the fiscal year ended June 30, 2018 as follows: ERS Old Plan  0.05% and ERS New Plan, LRS, and GJRS  0.02%. ERS Old Plan members were hired prior to July 1, 1982 and new plan members were hired on or after July 1, 1982, but prior to January 1, 2009. \nGeorgia law provides that employee contributions to the plan shall be in an amount established by the SEAD Board not to exceed one-half of 1% of the member's earnable compensation. There were no employer contributions required for the fiscal year ended June 30, 2018. \nAccording to the policy terms covering the lives of members, insurance coverage is provided on a monthly, renewable term basis, and no return premiums or cash value are earned. The net position represents the excess accumulation of investment income and premiums over benefit payments and expenses, and is held as a reserve for payment of death benefits under existing policies. \nThe amount of insurance coverage is equal to 18 times monthly earnable compensation frozen at age 60. For members with no creditable service prior to April 1, 1964, the amount decreases from age 60 by a half of 1% per month until age 65, at which point the member will be covered for 70% of the age 60 coverage. Life insurance proceeds are paid in lump sum to the beneficiary upon death of the member. \nAdministrative costs for the plan are determined based on the plan's share of overhead costs to accumulate and invest funds, actuarial services, and to process benefit payments to beneficiaries. Administrative fees are financed from the assets of the plan. \n(3) Significant Accounting Policies and System Asset Matters \n(a) Basis of Accounting The System's financial statements are prepared in accordance with U.S. generally accepted accounting principles as applicable to governmental organizations. The System follows the reporting requirements established by GASB. \nFiduciary funds include the defined benefit plans and defined contribution plans, which are accounted for on the flow of economic resources measurement focus and the accrual basis of accounting. Contributions to the defined benefit pension plans and OPEB plan are recognized in the period in which the contributions are due. Benefits and refunds are recognized when due and payable in accordance with the terms of each plan. Contributions to the deferred compensation plans are recognized as received. The SBF is an agency fund and is custodial in nature and does not measure the results of operations. Assets and liabilities are recorded using the accrual basis of accounting. The proprietary fund comprises the SEAD-Active plan. This fund is accounted for on the flow of economic resources measurement focus and uses the accrual basis of accounting. The principal operating revenues are derived from insurance premiums. Operating expenses include the cost of claims and related expenses. \n \n(continued) 39 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \n(b) Reporting Entity The System is a component unit of the State of Georgia; however, it is accountable for its own fiscal matters and presentation of its separate financial statements. The System has considered potential component units under GASB Statements No. 80, Blending Requirements for Certain Component Units, No. 61, The Financial Reporting Entity's Omnibus  An Amendment of GASB Statement No. 14 and No. 34, and No. 39, Determining Whether Certain Organizations are Component Units, and determined there were no component units of the System. \n \n(c) Cash and Cash Equivalents Cash and cash equivalents, reported at cost, include cash on deposit at banks and cash on deposit with the investment custodian. \n \n(d) Investments Investments are reported at fair value, and in some cases, net asset value (NAV) as a practical expedient to fair value. Equity securities traded on a national or international exchange are valued at the last reported sales price. Investments in private investment companies are valued utilizing the NAVs provided by the underlying private investment companies as a practical expedient. The Pooled Investment Fund (the Fund) applies the practical expedient to its investments in private investment companies on an investment by investment basis, and consistent with the Fund's entire position in a particular investment, unless it is probable that the Fund will sell a portion of an investment at an amount different from the NAV of the investment. Private equity fair value is measured using the valuation of the underlying companies as reported by the general partner. These investments, in the form of limited partnerships, reflect values and related performance on a quarter-lag basis due to the nature of the investments and the time it takes to value them. The estimated fair value of investments without readily determinable market values could differ significantly if a ready market for these assets existed. Fixed income securities are valued based primarily on quoted market prices provided by independent pricing sources. Global foreign exchange holdings are translated using a third-party vendor. Investment income is recognized as earned by the System. There are no investments in, loans to, or leases with parties related to the System. \nThe System utilizes various investment instruments. Investment securities, in general, are exposed to various risks, such as interest rate, credit, foreign currency, and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the financial statements. \nThe System's policy with regard to the allocation of invested assets is established on a cost basis in compliance with Georgia statute. Plan assets are managed on a total return basis with a long-term objective of achieving and maintaining a fully funded status for the benefits provided through the pension and OPEB plans. The following was the System's adopted asset allocation policy as of June 30, 2018: \n \nAsset class \nFixed income Equities Alternative investments Cash and cash equivalents \nTotal \n \nTarget allocation \n25%-45% 55%-75% \n0%-5%  \n100% \n \nApproximately 18.8% of the investments held in trust for pension and OPEB benefits are invested in debt securities of the U.S. government. The System has no investments in any one organization, other than those issued by the U.S. government and its instrumentalities, that represent 5% or more of the System's net position restricted for pensions and OPEB. \n \n(continued) 40 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nFor the year ended June 30, 2018, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 0.6%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. \n(e) Capital Assets Capital assets, including software development costs, are stated at cost less accumulated depreciation and reside in ERS. The capitalization thresholds are $100,000 for buildings and building improvements and $5,000 for equipment and vehicles. Depreciation on capital assets is computed using the straight-line method over estimated useful lives of 5 to 40 years. Depreciation expense is included in administrative expenses. Maintenance and repairs are charged to administrative expenses when incurred. When assets are retired or otherwise disposed of, the costs and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in the combining statement of changes in fiduciary net position in the period of disposal. \n(f) Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of net position and changes therein. Actual results could differ from those estimates. \n(g) New Accounting Pronouncements \nPronouncements effective for the 2018 financial statements: \nIn June 2015, the GASB issued Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, effective for fiscal years beginning after June 15, 2017. The Statement addressed accounting and financial reporting for defined benefit OPEB plans that are provided to the employees of state and local governmental employers. See note 3(h) for the impact to the System. \nIn March 2016, the GASB issued Statement No. 81, Irrevocable Split-Interest Agreements, effective for fiscal years beginning after December 15, 2016. The objective of this Statement is to improve accounting and financial reporting for irrevocable split interest agreements by providing recognition and measurement guidance for situations in which a government is a beneficiary of the agreement. There are no applicable reporting requirements for the System related to this statement. \nIn March 2017, the GASB issued Statement No. 85, Omnibus 2017, effective for fiscal years beginning after June 15, 2017. This Statement addresses practice issues that have been identified during implementation and application of certain GASB Statements. A variety of topics are addressed, including issues related to blending component units, goodwill, fair value measurement, and OPEB. The implementation of Statement No. 85 did not impact the amounts recorded or disclosures presented in the System's financial statements. \nIn May 2017, the GASB issued Statement No. 86, Certain Debt Extinguishment Issues, effective for fiscal years beginning after June 15, 2017. The primary objective of this Statement is to improve consistency in accounting and financial reporting for in-substance defeasance of debt. There are no applicable reporting requirements for the System related to this Statement. \nPronouncements issued, but not yet effective: \nIn November 2016, the GASB issued Statement No. 83, Certain Asset Retirement Obligations, effective for fiscal years beginning after June 15, 2018. This Statement addresses accounting and financial reporting for certain asset retirement obligations (AROs). An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset. The System does not anticipate this statement to impact its financial statements and related reporting. \n \n(continued) 41 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nIn January 2017, the GASB issued Statement No. 84, Fiduciary Activities, effective for fiscal years beginning after December 15, 2018. The objective of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. The System is in the process of evaluating the impact of this pronouncement on its financial statements. \nIn June 2017, the GASB issued Statement No. 87, Leases, effective for fiscal years beginning after December 15, 2019, which provides guidance for lease contracts for nonfinancial assets  including vehicles, heavy equipment, and buildings  but excludes nonexchange transactions, including donated assets, and leases of intangible assets (such as patents and software licenses). The System is in the process of evaluating the impact of this pronouncement on its financial statements. \nIn April 2018, the GASB issued Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowing and Direct Placements effective for fiscal years beginning after June 15, 2018. The purpose is to improve the information that is disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements. It also clarifies which liabilities governments should include when disclosing information related to debt. The System is in the process of evaluating the impact of this pronouncement on its financial statements. \nIn June 2018, the GASB issued Statement No. 89, Accounting for Interest Costs Incurred before the End of a Construction Period, effective for fiscal years beginning after December 15, 2019, which establishes guidance designed to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period. It also simplifies accounting for interest costs incurred before the end of a construction period. The System is in the process of evaluating the impact of this pronouncement on its financial statements. \n \n(continued) 42 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \n(h) Change in Accounting Principle In June 2015, the GASB issued Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, effective for fiscal years beginning after June 15, 2017. This Statement established new financial reporting standards for state and local governmental employers that participate in other postemployment benefit plans that are administered through a trust or similar arrangement. This Statement established standards for measuring and recognizing liabilities, deferred outflows of resources, deferred inflows of resources, and expenses. As a result, the System has restated beginning net position by approximately $7.5 million. A summary of the changes to beginning net position is as follows (dollars in thousands): \n \nCombining Statement of Changes in Fiduciary Net Position: Defined Benefit Plans Net Position - beginning of year as previously reported Recording of SEAD-OPEB net OPEB asset Recording of State OPEB Fund net OPEB liability Recording of contributions made subsequently Net position - beginning of year, as restated \nDefined Benefit Plans  Combining Statement of Changes in Fiduciary Net Position: Employees' Retirement System \nNet Position - beginning of year as previously reported Recording of SEAD-OPEB net OPEB asset Recording of State OPEB Fund net OPEB liability Recording of contributions made subsequently Net position - beginning of year, as restated \n \n$ 15,582,566 372 \n(8,792) 926 \n$ 15,575,072 \n$ 13,098,299 372 \n(8,792) 926 \n$ 13,090,805 \n \n(continued) 43 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \n(4) Investment Program \nThe System maintains sufficient cash to meet its immediate liquidity needs. Cash not immediately needed is invested as directed by the ERS Board. All investments are held by agent custodial banks in the name of the System. State statutes and the System's investment policy authorize the System to invest in a variety of shortterm and long-term securities as follows: \n(a) Cash and Cash Equivalents Custodial credit risk is the risk that in the event a depository institution or counterparty fails, the System would not be able to recover the value of its deposits or investments. The System does not have a formal policy relating to custodial credit risk. The carrying amount of the System's deposits totaled $276.6 million at June 30, 2018 with actual bank balances of $280.3 million. The System's bank balances of $260.0 million are fully insured through the Federal Deposit Insurance Corporation, an independent agency of the U.S. government. The remaining bank deposits of $20.3 million are uninsured and uncollateralized. The System's noncash investments are held in the System's name and are not exposed to custodial credit risk. \nShort term securities authorized but not currently used are as follows:  Repurchase and reverse repurchase agreements, whereby the System and a broker exchange cash for \ndirect 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. \n U.S. Treasury obligations \n Commercial paper, with a maturity of 180 days or less. Commercial paper is an unsecured promissory note issued primarily by corporations for a specific amount and maturing on a specific day. The System considers for investment only commercial paper of the highest quality, rated P-l and/or A-l by national credit rating agencies. \n Master notes, an overnight security administered by a custodian bank and an obligation of a corporation whose commercial paper is rated P-l and/or A-l by national credit rating agencies. \nInvestments in commercial paper or master notes are limited to no more than $500 million in any one name. \n(b) Investments Fixed income investments, managed by the Division of Investment Services (the Division), are authorized in the following instruments:  U.S. and foreign government obligations. At June 30, 2018, the System held U.S. Treasury bonds of approximately $3.4 billion. \n Obligations unconditionally guaranteed by agencies of the U.S. government. At June 30, 2018, the System did not hold agency bonds. \n U.S. and foreign corporate obligations. At June 30, 2018, the System held U.S. corporate bonds of approximately $1.5 billion and international corporate bonds of approximately $190 million. \n Private placements are authorized under the same general restrictions applicable to corporate bonds. At June 30, 2018, the System did not hold private placements. \n \n(continued) 44 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nMortgage investments are authorized to the extent that they are secured by first mortgages on improved real property located in the state of Georgia. \nEquity securities are also authorized (in statutes) for investment as a complement to the System's fixed income portfolio and as a long-term inflation hedge. By statute, no more than 75% of the total invested assets on a historical cost basis may be placed in equities. Equity holdings in any one corporation may not exceed 5% of the outstanding equity of the issuing corporation. The equity portfolio is managed by the Division, in conjunction with independent advisers. Buy/sell decisions are based on securities meeting rating criteria established by the ERS Board, in-house research considering such matters as yield, growth, and sales statistics, and analysis of independent market research. Equity trades are approved and executed by the Division's staff. Common stocks eligible for investment are approved by the Investment Committee of the ERS Board before being placed on an approved list. \nEquity investments are authorized in the following instruments: \n Domestic equities are those securities considered by O.C.G.A. to be domiciled in the United States. At June 30, 2018, the System held domestic equities of approximately $8.3 billion. \n International equities, including American Depository Receipts (ADR), are not considered by the O.C.G.A. to be domiciled in the United States. At June 30, 2018, the System held international equities of approximately $1.1 billion and ADRs of approximately $1.7 billion, excluding the 401(k) and 457 plans. \n Alternative investments are authorized (in statutes) to provide portfolio diversification and to enhance the risk-adjusted rate of return for the retirement fund that benefits the members of the System. By statute, the allocation to alternative investments shall not, in the aggregate, exceed 5% of the System's plan assets at any time. Further, in any calendar year, new commitments to alternative investments shall not, in the aggregate exceed 1.0% of the System's plan assets until the first occurrence that 4.5% of the assets have been invested, at which time there shall be no limit on the percentage of commitments that may be made in any calendar year, subject to compliance with other provisions of the statute. At June 30, 2018, the System held private equity investments of approximately $221.9 million. \nThe Master Trust invests in various mutual funds, common collective trust funds, and separate accounts, as selected by participants. Each participant is allowed to select and invest contributions into investment options that own one or more commingled funds, as authorized by the ERS Board. Participants may also contribute to a self-directed brokerage account that offers investments in various mutual funds and equities. At June 30, 2018, the deferred compensation plans held commingled funds of approximately $1.6 billion, mutual funds of approximately $7.2 million, domestic equities of approximately $14.8 million, and international equities of approximately $1.4 million. \nSubstantially all of the investments of ERS, PSERS, LRS, GJRS, GMPF, SEAD-OPEB, SBF, and SEADActive are pooled into one common investment fund. Units in the pooled common investment fund are allocated to the respective plans based upon the cost of assets contributed, and additional units are allocated to the participating plans based on the market value of the pooled common investment fund at the date of contribution. Net income of the pooled common investment fund is allocated monthly to the participating plans, based upon the number of units outstanding during the month. \n \n(continued) 45 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nThe units and fair value of each plan's equity in the pooled common investment fund at June 30, 2018 were as follows (dollars in thousands): \n \nEmployees' Retirement System Public School Employees Retirement System Legislative Retirement System Georgia Judicial Retirement System Georgia Military Pension Fund State Employees' Assurance Department - OPEB Survivors Benefit Fund \nTotal defined benefit plans \nState Employees' Assurance Department - Active \nTotal in pooled investment funds \n \nFair value \n$ 13,468,340 914,957 34,216 466,307 23,715 \n1,189,173 148,450 \n16,245,158 \n289,087 \n$ 16,534,245 \n \nUnits \n2,722,454 184,947 6,916 94,258 4,794 240,376 30,007 \n3,283,752 \n58,435 \n3,342,187 \n \nFair Value Measurements. The System categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the inputs used in valuation and gives the highest priority to unadjusted quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the hierarchy is based on whether the significant inputs into the valuations are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest level, Level 1, is given to unadjusted quoted prices in active markets and the lowest level, Level 3, to unobservable inputs. \nThe three levels of the fair value hierarchy are as follows: \nLevel 1  Valuations based on unadjusted quoted prices for identical instruments in active markets that the System has the ability to access. \nLevel 2  Valuations based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs are observable. \nLevel 3  Valuations based on inputs that are unobservable and significant to the overall fair value measurement. \nThe System also has investments held through limited partnerships for which fair value is estimated using the NAV reported by the general partner as a practical expedient to fair value. Such investments have not been categorized within the fair value hierarchy. \nIn instances where inputs used to measure fair value fall into different levels in the fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The System's assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each investment. The table on the following page shows the fair value leveling of the System's investments (in thousands). \n \n(continued) 46 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nFair value measures using \n \nInvestments by fair value level \n \nQuoted prices in active \nmarkets for identical assets (Level 1) \n \nSignificant other \nobservable inputs \n(Level 2) \n \nSignificant unobservable \ninputs (Level 3) \n \nEquities: \n \nDomestic \n \n$ \n \n8,332,421 \n \n-- \n \n-- \n \nInternational \n \n2,788,248 \n \n19,606 \n \n-- \n \nObligations: \n \nDomestic: \n \nU.S. Treasuries \n \n3,374,310 \n \n-- \n \n-- \n \nCorporate bonds \n \n-- \n \n1,475,432 \n \n-- \n \nInternational: \n \nCorporate bonds \n \n-- \n \n190,353 \n \n-- \n \nMutual funds \n \n7,228 \n \n-- \n \n-- \n \nCommingled funds \n \n80,811 \n \n1,510,680 \n \n-- \n \nTotal investments by \n \nfair value level \n \n$ \n \nInvestments measured at NAV* Private equity funds \n \nTotal investments \n \n14,583,018 \n \n3,196,071 \n \n-- $ \n \nTotal \n8,332,421 2,807,854 \n3,374,310 1,475,432 \n190,353 7,228 \n1,591,491 \n17,779,089 \n221,904 18,000,993 \n \n*Certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the combining statement of fiduciary net position. \nEquity securities classified in Level 1 are valued using prices quoted in active markets for those securities. Equity securities in Level 2 are valued using prices quoted for similar instruments in active markets. Equity securities classified in Level 3, if any, are valued using third-party valuations not currently observable in the market. \nDebt securities classified in Level 1 are valued using prices quoted in active markets. Debt securities classified in Level 2 are valued using either a bid evaluation or a matrix pricing technique. Bid evaluations may include market quotations, yields, maturities, call features, and ratings. Matrix pricing is used to value securities based on the securities' relationship to benchmark quoted prices. These securities have nonproprietary information that was readily available to market participants, from multiple independent sources, which are known to be actively involved in the market. \nMutual funds and commingled funds classified in Level 1 are valued using prices quoted in active markets for those investment types. Commingled funds classified in Level 2 are valued using observable underlying inputs that are market corroborated. \n \n(continued) 47 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nUnfunded commitments, redemption frequency, and redemption notice period relative to the System's alternative investments for which the System utilized NAV or its equivalent relative to the determination of fair value at June 30, 2018 are as follows (in thousands): \n \nPrivate equity funds \n \nInvestments measured at \nNAV \n$ 221,904 \n \nUnfunded commitments \n213,933 \n \nRedemption frequency (if currently \neligible) \nNot eligible \n \nRedemption notice period \nN/A \n \nInvestments in privately held limited partnerships are valued using the NAV provided by the general partner as of March 31 of each fiscal year, adjusted by the System for cash flows through June 30. The quarterly values of the partnership investments provided from the general partner are reviewed by the System to determine if any adjustments are necessary. The types of partnership strategies held include growth equity, leveraged buyouts, and mezzanine debt. Two of the 15 partnerships held are secondary investments and are in or nearing the wind up phase of the fund. The remaining investments typically have an approximate life of 810 years. These investments are considered illiquid since the nature of these private investments prohibits redemption with the fund; instead, distributions are received from the general partner through liquidation of the underlying assets of the fund. The System currently has no plans to sell any of the investments prior to their liquidation resulting in these assets being carried at the NAV estimated by the general partner and adjusted for second quarter cash flows by the System. \n \nCredit Risk: Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations to the System. O.C.G.A. 47-20-84 limits investments to investment grade securities. \nIt is the System's investment policy to require that the bond portfolio be of high quality and chosen with respect to maturity ranges, coupon levels, refunding characteristics, and marketability. The System's policy is to require that new purchases of bonds be restricted to high-grade bonds rated no lower than \"A\" by any nationally recognized statistical rating organization. If a bond is subsequently downgraded to a rating below \"A,\" it is placed on a watch list. Obligations of the U.S. government or obligations explicitly guaranteed by the U.S. government are not considered to have credit risk and do not require disclosure of credit quality. The quality ratings of investments in fixed income securities as described by Standard \u0026 Poor's and by Moody's Investors Service, which are nationally recognized statistical rating organizations, at June 30, 2018 are shown in the chart on the following page (in thousands): \n \n(continued) 48 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nQuality Ratings of Fixed Income Investments Held at June 30, 2018 \n \nInvestment type Domestic obligations: \nU.S. Treasuries Corporates \nTotal corporates International obligations: \nCorporates \nTotal corporates Total fixed income investments \n \nStandard \u0026 Poor's/ Moody's \nquality rating \n \nJune 30, 2018 fair value \n \nAAA/Aaa AA/Aaa AA/Aa \nA/Aa AA/A A/A \n \n$ \n \n3,374,310 \n \n166,156 \n \n188,755 \n \n151,695 \n \n96,524 \n \n146,034 \n \n726,268 \n \n1,475,432 \n \nA/Aa A/A \n \n95,951 94,402 \n \n190,353 \n \n$ \n \n5,040,095 \n \nMutual funds, commingled funds, and various equities of the deferred compensation plans are not considered to have credit risk and do not require disclosure of credit risk rating. \nConcentration of Credit Risk: Concentration of credit risk is the risk of loss that may be attributed to the magnitude of a government's investment in a single issue. At June 30, 2018, the System did not have debt or equity investments in any one organization, other than those issued or guaranteed by the U.S. government or its agencies, which represented greater than 5% of plan net position. \nInterest Rate Risk: Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. While the System has no formal interest rate risk policy, active management of the bond portfolio incorporates interest rate risk to generate improved returns. This risk is managed within the portfolio using the effective duration method. This method is widely used in the management of fixed income portfolios and quantifies to a much greater degree the sensitivity to interest rate changes when analyzing a bond portfolio with call options, prepayment provisions, and any other cash flows. Effective duration makes assumptions regarding the most likely timing and amounts of variable cash flows and is best utilized to gauge the effect of a change in interest rates on the fair value of a portfolio. It is believed that the reporting of effective duration found in the table on the following page quantifies to the fullest extent possible the interest rate risk of the System's fixed income assets (amounts in thousands). \n \n(continued) 49 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nEffective Duration of Fixed Income Assets \n \nFixed income type \nDomestic obligations: U.S. Treasuries Corporates \nInternational obligations: Corporates Total \n \nFair value June 30, 2018 \n \nPercent of all fixed \nincome assets \n \nEffective duration (years) \n \n$ 3,374,310 1,475,432 \n190,353 $ 5,040,095 \n \n66.9 % \n \n5.7 \n \n29.3 \n \n3.8 \n \n3.8 \n \n0.8 \n \n100.0 % \n \n4.9 \n \nForeign Currency Risk: Foreign currency risk is the risk that changes in exchange rates will impact the fair value of an investment. The System's currency risk exposures, or exchange rate risks, primarily reside within the System's international equity investment holdings. The System's foreign exchange risk management policy is to minimize risk and protect the investments from negative impact by hedging foreign currency exposures with foreign exchange instruments when market conditions and circumstances are deemed appropriate. As of June 30, 2018, the System's exposure to foreign currency risk in U.S. dollars, excluding the 401(k) and 457 plans, is highlighted in the table on the following page (amounts in thousands): \n \n50 \n \n(continued) \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nInternational Investment Securities at Fair Value as of June 30, 2018 \n \nCurrency \nAustralian dollar Brazilian real British pound Canadian dollar Czech krone Danish krone Euro Hong Kong dollar Indian rupee Indonesian rupiah Israeli shekel Japanese yen Malaysian ringgit Mexican peso New Taiwan dollar Norwegian krone Philippine peso Polish zloty Singapore dollar South African rand South Korean won Swedish krona Swiss franc Thailand baht \n \nCash/cash equivalents \n \n$ \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n36 \n \n-- \n \n-- \n \n-- \n \n-- \n \n16 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \nEquities \n46,103 10,568 109,708 38,679 \n1,062 17,110 299,571 53,522 53,318 5,537 1,816 193,230 14,653 5,847 29,990 2,355 4,220 2,841 23,992 38,495 69,474 31,062 31,121 19,606 \n \nFixed income \n-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- \n \nTotal holdings subject to foreign currency risk \n \n52 \n \n1,103,880 \n \n-- \n \nInvestment securities payable in U.S. dollars \n \n-- \n \n1,702,552 \n \n190,353 \n \nTotal international investment securities - at fair value \n \n52 \n \n2,806,432 \n \n190,353 \n \nTotal \n46,103 10,568 109,708 38,679 \n1,062 17,110 299,607 53,522 53,318 5,537 1,816 193,246 14,653 5,847 29,990 2,355 4,220 2,841 23,992 38,495 69,474 31,062 31,121 19,606 \n1,103,932 \n1,892,905 \n2,996,837 \n \n(5) Securities Lending Program \nState statutes and ERS Board policies permit the System to lend its securities to broker-dealers with a simultaneous agreement to return the collateral for the same securities in the future. The System is presently involved in a securities lending program with major brokerage firms. The System lends equity and fixed income securities for varying terms and receives a fee based on the loaned securities' value. The System reports the gross loan fee income earned as investment income on the combining statement of changes in fiduciary net position. During a loan, the System continues to receive dividends and interest as the owner of the loaned securities. The brokerage firms pledge collateral securities consisting of U.S. government and agency securities, mortgage backed securities issued by a U.S. government agency, corporate bonds, and equities. The collateral value must be equal to at least 102% to 109% of the loaned securities' value, depending on the type of collateral security. \nSecurities loaned totaled approximately $4.0 billion at fair value at June 30, 2018. The collateral value was equal to 105% of the loaned securities' value at June 30, 2018. The System's lending collateral was held in the System's name by the tri-party custodian. \n(continued) 51 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nLoaned securities are included in the accompanying combining statement of fiduciary net position since the System maintains ownership. The related collateral securities are not recorded as assets on the System's combining statement of fiduciary net position, and a corresponding liability is not recorded, since the System is deemed not to have the ability to pledge or trade the collateral securities. The System is deemed not to have the ability to pledge or sell the collateral securities, since the System's lending contracts do not address whether the lender can pledge or sell the collateral securities without a borrower default, the System has not previously demonstrated that ability, and there are no indications of the System's ability to pledge or sell the collateral securities. \n \n(6) Capital Assets \n \nThe following is a summary of capital assets and depreciation information as of and for the year ended June 30, 2018: \n \nCapital assets: Land Building Equipment Vehicles Computer software \n \nBalance at June 30, 2017 \n \nBalance at Additions Disposals June 30, 2018 \n \n$ 4,341,787 2,800,000 3,272,212 13,382 \n14,344,609 \n24,771,990 \n \n8,000 -- \n134,905 -- -- \n142,905 \n \n   (13,382)  \n(13,382) \n \n4,349,787 2,800,000 3,407,117 \n-- 14,344,609 \n24,901,513 \n \nAccumulated depreciation for: Building Equipment Vehicles Computer software \n \n(910,000) (2,599,612) \n(13,382) (14,344,609) \n(17,867,603) \n \n(70,000) (239,211) \n-- -- \n(309,211) \n \n  13,382  \n13,382 \n \n(980,000) (2,838,823) \n-- (14,344,609) \n(18,163,432) \n \nCapital assets, net \n \n$ 6,904,387 \n \n(166,306) \n \n \n \n6,738,081 \n \n(7) Commitments \n \nAs of June 30, 2018, the System had committed to fund certain private equity partnerships for a total capital commitment of approximately $427.8 million. Of this amount, approximately $213.9 million remained unfunded and is not recorded on the System's combining statement of fiduciary net position. \n \n(8) Net Pension Liability of Employers and Nonemployers - ERS \n \nThe components of the net pension liability of the participating employers and nonemployers at June 30, 2018 were as follows (dollars in thousands): \n \nTotal pension liability Plan fiduciary net position \n \n$ 17,628,219 13,517,186 \n \nEmployers' and nonemployers' net pension liability \n \n$ \n \n4,111,033 \n \nPlan fiduciary net position as a percentage of the total pension liability \n \n76.68% \n \n(continued) 52 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2017, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases Investment rate of return \n \n2.75% 3.25 - 7.00%, including inflation 7.30%, net of pension plan investment expense, including inflation \n \nPostretirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward two years for both males and females for service retirements and dependent beneficiaries. The RP-2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB and set back seven years for males and set forward three years for females was used for death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. There is a margin for future mortality improvement in the tables used by the plan. \n \nThe actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the investment rate of return. Subsequent to the June 30, 2017 measurement date, the ERS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the ERS Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. Therefore, an assumption change from 7.50% to 7.30% is reflected in the calculation of the total pension liability. \n \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class \nFixed income Domestic large equities Domestic mid equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n \nTarget allocation \n30.00 % 37.20 \n3.40 1.40 17.80 5.20 5.00 \n100.00 % \n \nLong-term expected real rate of return* \n(0.50) % 9.00 12.00 13.50 8.00 12.00 10.50 \n \n* Rates shown are net of inflation \nDiscount rate: The discount rate used to measure the total pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \n(continued) 53 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nSensitivity of the net pension liability to changes in the discount rate: The following presents the net pension liability, calculated using the discount rate of 7.30%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.30%) or 1-percentage-point higher (8.30%) than the current rate (dollars in thousands): \n \nEmployers' and nonemployers' net pension liability \n \n1% Decrease (6.30%) \n$ 5,847,341 \n \nCurrent discount \nrate (7.30%) \n4,111,033 \n \n1% Increase (8.30%) \n2,631,654 \n \nActuarial valuation date: June 30, 2017 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2018 using standard roll-forward techniques. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n \n(9) Net Pension Liability of Employers and Nonemployers  PSERS \n \nThe components of the net pension liability of the participating employers and nonemployers at June 30, 2018 were as follows (dollars in thousands): \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployers' and nonemployers' net pension liability \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \n1,072,165 914,138 158,027 \n85.26% \n \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2017, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nSalary increases Investment rate of return Cost-of-living adjustment \n \nn/a 7.30%, net of pension plan investment expense, including inflation 1.5% semi-annually \n \nPostretirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward three years for males and two years for females) for the period after service retirement and for dependent beneficiaries. The RP-2000 Disabled Mortality projected to 2025 with projection scale BB (set forward five years for both males and females) was used for death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. There is a margin for future mortality improvement in the tables used by the plan. \nThe actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the investment rate of return. Subsequent to the June 30, 2017 measurement date, the PSERS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the PSERS Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. Therefore, an assumption change from 7.50% to 7.30% is reflected in the calculation of the total pension liability. \n \n(continued) 54 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class \nFixed income Domestic large equities Domestic mid equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n \nTarget allocation \n30.00 % 37.20 \n3.40 1.40 17.80 5.20 5.00 \n100.00 % \n \nLong-term expected real rate of return* \n(0.50) % 9.00 12.00 13.50 8.00 12.00 10.50 \n \n* Rates shown are net of inflation. \nDiscount rate: The discount rate used to measure the total pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \nSensitivity of the net pension liability to changes in the discount rate: The following presents the net pension liability, calculated using the discount rate of 7.30%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.30%) or 1-percentage-point higher (8.30%) than the current rate (dollars in thousands): \n \nEmployers' and nonemployers' net pension liability \n \n1% Decrease (6.30%) \n$ 276,775 \n \nCurrent discount \nrate (7.30%) \n158,027 \n \n1% Increase (8.30%) \n58,149 \n \nActuarial valuation date: June 30, 2017 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2018 using standard roll-forward techniques. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n \n(10) Net Pension Liability of Employer  LRS \n \nThe components of the net pension liability (asset) of the participating employer at June 30, 2018 were as follows (dollars in thousands): \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployer's net pension asset \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \n55 \n \n26,304 34,189 \n(7,885) \n129.98% \n \n(continued) \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2017, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases Investment rate of return Cost-of-living adjustment \n \n2.75% n/a 7.30%, net of pension plan investment expense, including inflation 1.5% semi-annually \n \nPostretirement mortality rates were based on the RP-2000 Combined Mortality Table projected to 2025 with projection scale BB (set forward two years for both males and females) for the period after service retirement. The RP-2000 Employee Mortality table projected to 2025 using projection scale BB was used for deaths in active service. \n \nThe actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the investment rate of return. Subsequent to the June 30, 2017 measurement date, the ERS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the ERS Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. Therefore, an assumption change from 7.50% to 7.30% is reflected in the calculation of the total pension liability. \n \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class \nFixed income Domestic large equities Domestic mid equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n \nTarget allocation \n30.00 % 37.20 \n3.40 1.40 17.80 5.20 5.00 \n100.00 % \n \nLong-term expected real rate of return* \n(0.50) % 9.00 12.00 13.50 8.00 12.00 10.50 \n \n* Rates shown are net of inflation. \n \nDiscount rate: The discount rate used to measure the total pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \nSensitivity of the net pension liability to changes in the discount rate: The table on the following page presents the net pension liability (asset), calculated using the discount rate of 7.30%, as well as what the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.30%) or 1-percentage-point higher (8.30%) than the current rate (dollars in thousands): \n \n(continued) 56 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nEmployers' and nonemployers' net pension liability (asset) \n \n1% Decrease (6.30%) \n$ (5,420) \n \nCurrent discount \nrate (7.30%) \n(7,885) \n \n1% Increase (8.30%) \n(9,971) \n \nActuarial valuation date: June 30, 2017 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2018 using standard roll-forward techniques. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n \n(11) Net Pension Liability of Employers and Nonemployers  GJRS \n \nThe components of the net pension liability (asset) of the participating employers and nonemployers at June 30, 2018 were as follows (dollars in thousands): \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployers' and nonemployers' net pension asset \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \n428,624 466,657 \n(38,033) \n108.87% \n \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2017, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases Investment rate of return \n \n2.75% 4.50%, including inflation 7.30%, net of pension plan investment expense, including inflation \n \nMortality rates were based on the RP-2000 Combined Mortality Table projected to 2025 with projection scale BB and set forward two years for both males and females for the period after retirement and for dependent beneficiaries. For the period after disability retirement, the RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB and set back seven years for males and set forward three years for females is used. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \n \nThe actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the investment rate of return. Subsequent to the June 30, 2017 measurement date, the GJRS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the GJRS Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. Therefore, an assumption change from 7.50% to 7.30% is reflected in the calculation of the total pension liability. \n \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the table on the following page: \n(continued) 57 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nAsset Class \nFixed income Domestic large equities Domestic mid equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n \nTarget allocation \n30.00 % 37.20 \n3.40 1.40 17.80 5.20 5.00 \n100.00 % \n \nLong-term expected real rate of return* \n(0.50) % 9.00 12.00 13.50 8.00 12.00 10.50 \n \n* Rates shown are net of inflation. \nDiscount rate: The discount rate used to measure the total pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \nSensitivity of the net pension liability to changes in the discount rate: The following table presents the net pension liability (asset), calculated using the discount rate of 7.30%, as well as what the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.30%) or 1-percentage-point higher (8.30%) than the current rate (dollars in thousands): \n \nEmployers' and nonemployers' net pension liability (asset) \n \n1% Decrease (6.30%) \n$ 2,446 \n \nCurrent discount \nrate (7.30%) \n(38,033) \n \n1% Increase (8.30%) \n(73,292) \n \nActuarial valuation date: June 30, 2017 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2018 using standard roll-forward techniques. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n \n(12) Net Pension Liability of Employer  GMPF \nThe components of the net pension liability of the participating employer at June 30, 2018 were as follows (dollars in thousands): \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployers' net pension liability \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \n43,204 23,653 \n19,551 \n54.75% \n \n(continued) 58 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2017, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases Investment rate of return \n \n2.75% n/a 7.30%, net of pension plan investment expense, including inflation \n \nPostretirement mortality rates were based on the RP-2000 Combined Mortality Table projected to 2025 with projection scale BB (set forward two years for both males and females) for the period after service retirement. The RP-2000 Employee Mortality Table projected to 2025 using projection scale BB was used for deaths in active service. \n \nThe actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the investment rate of return. Subsequent to the June 30, 2017 measurement date, the ERS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the ERS Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. Therefore, an assumption change from 7.50% to 7.30% is reflected in the calculation of the total pension liability. \n \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset Class \nFixed income Domestic large equities Domestic mid equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n \nTarget allocation \n30.00 % 37.20 \n3.40 1.40 17.80 5.20 5.00 \n100.00 % \n \nLong-term expected real rate of return* \n(0.50) % 9.00 12.00 13.50 8.00 12.00 10.50 \n \n* Rates shown are net of inflation. \nDiscount rate: The discount rate used to measure the total pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \nSensitivity of the net pension liability to changes in the discount rate: The table on the following page presents the net pension liability (asset), calculated using the discount rate of 7.30%, as well as what the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.30%) or 1-percentage-point higher (8.30%) than the current rate (dollars in thousands): \n \n(continued) 59 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nEmployers' net pension liability \n \n1% Decrease (6.30%) \n$ 25,766 \n \nCurrent discount \nrate (7.30%) \n19,551 \n \n1% Increase (8.30%) \n14,501 \n \nActuarial valuation date: June 30, 2017 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2018 using standard roll-forward techniques. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n \n(13) Net OPEB Liability of Employers - SEAD-OPEB \n \nThe components of the net OPEB liability (asset) of the participating employers at June 30, 2018 were as follows (dollars in thousands): \n \nTotal OPEB liability Plan fiduciary net position \n \n$ \n \n918,816 \n \n1,189,462 \n \nEmployers' net OPEB asset \n \n$ \n \n(270,646) \n \nPlan fiduciary net position as a percentage of the total OPEB liability \n \n129.46% \n \nActuarial assumptions: The total OPEB liability was determined by an actuarial valuation as of June 30, 2017, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases: \nERS GJRS LRS Investment rate of return Healthcare cost trend rate \n \n2.75% \n3.25% - 7.00% 4.50% n/a 7.30%, net of OPEB plan investment expense, including inflation n/a \n \nPostretirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward two years for both males and females for service retirements and dependent beneficiaries. There is a margin for future mortality improvement in the tables used by the plan. \nThe actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the investment rate of return. Subsequent to the June 30, 2017 measurement date, the SEAD Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the SEAD Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. Therefore, an assumption change from 7.50% to 7.30% is reflected in the calculation of the total pension liability. \nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the table on the following page: \n(continued) 60 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nAsset Class \nFixed income Domestic large equities Domestic mid equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n \nTarget allocation \n30.00 % 37.20 \n3.40 1.40 17.80 5.20 5.00 \n100.00 % \n \nLong-term expected real rate of return* \n(0.50) % 9.00 12.00 13.50 8.00 12.00 10.50 \n \n* Rates shown are net of inflation. \nDiscount rate: The discount rate used to measure the total OPEB liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. \nSensitivity of the net OPEB liability to changes in the discount rate: The following table presents the net OPEB asset, calculated using the discount rate of 7.30%, as well as what the net OPEB asset would be if it were calculated using a discount rate that is 1-percentage-point lower (6.30%) or 1-percentage-point higher (8.30%) than the current rate (dollars in thousands): \n \nEmployers' net OPEB asset \n \n1% Decrease (6.30%) \n$ (145,823) \n \nCurrent discount \nrate (7.30%) \n(270,646) \n \n1% Increase (8.30%) \n(372,959) \n \nActuarial valuation date: June 30, 2017 is the actuarial valuation date upon which the total OPEB liability is based. An expected total OPEB liability is determined as of June 30, 2018 using standard roll-forward techniques. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n(14) System Employees' Other Postemployment Benefits (OPEB) \nCertain of the System's employees are members of the State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund and the Georgia State Employees Postretirement Benefit Fund. The notes to the financial statements that follow and required supplementary information on pages 79 and 80 are presented from the perspective of the System as an employer. \nGeneral Information about the State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEAD-OPEB) \nPlan description: SEAD-OPEB was created in 2007 by the Georgia General Assembly to amend Title 47 of the O.C.G.A., relating to retirement, so as to establish a fund for the provision of term life insurance to retired and vested inactive members of ERS, LRS, and GJRS. The plan is a cost-sharing multiple-employer defined benefit \n \n(continued) 61 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nother postemployment benefit plan as defined in GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than OPEB Plans. The SEAD-OPEB trust fund accumulates the premiums received from the aforementioned retirement plans, including interest earned on deposits and investments of such payments. \nBenefits provided: The amount of insurance for a retiree with creditable service prior to April 1, 1964 is the full amount of insurance in effect on the date of retirement. The amount of insurance for a service retiree with no creditable service prior to April 1, 1964 is 70% of the amount of insurance in effect at age 60 or at termination, if earlier. Life insurance proceeds are paid in a lump sum to the beneficiary upon death of the retiree. \nContributions: Georgia law provides that employee contributions to the plan shall be in an amount established by the SEAD Board not to exceed one-half of 1% of the member's earnable compensation. There were no employer contributions required for the fiscal year ended June 30, 2018. \nOPEB Liabilities and OPEB Expense related to SEAD-OPEB \nAt June 30, 2018, the System reported an asset of $501 thousand for its proportionate share of the net OPEB asset. The net OPEB asset was measured as of June 30, 2017. The total OPEB asset used to calculate the net OPEB asset was based on an actuarial valuation as of June 30, 2016. An expected total OPEB asset as of June 30, 2017 was determined using standard roll-forward techniques. The System's proportionate share of the net OPEB asset was based on actual member salaries reported to the SEAD-OPEB plan during the fiscal year ended June 30, 2017. At June 30, 2017, the employer's proportionate share was 0.192864%, which was an increase of 0.003037% from its proportionate share measured as of June 30, 2016. For the year ended June 30, 2018, the employer recognized a reduction of OPEB expense of $48 thousand. \nActuarial assumptions: The total SEAD-OPEB asset as of June 30, 2017 was determined by an actuarial valuation as of June 30, 2016 using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increase: Investment rate of return Healthcare cost trend rate \n \n2.75% 3.25 - 7.00%, including inflation 7.50%, net of SEAD-OPEB plan investment expense, including inflation n/a \n \nPostretirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward 2 years for both males and females for service retirements and dependent beneficiaries. There is a margin for future mortality improvement in the tables used by the plan. \n \nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \n \nThe long-term expected rate of return on SEAD-OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of plan investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and estimates of arithmetic real rates of return for each major asset class are summarized in the table on the following page: \n \n(continued) 62 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nAsset Class \nFixed income Domestic large equities Domestic mid equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n \nTarget allocation \n30.00 % 37.20 \n3.40 1.40 17.80 5.20 5.00 \n100.00 % \n \nLong-term expected real rate of return* \n(0.50) % 9.00 12.00 13.50 8.00 12.00 10.50 \n \n* Rates shown are net of inflation. \nDiscount rate: The discount rate used to measure the total SEAD-OPEB liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employers and State of Georgia contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the SEAD-OPEB plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on SEAD-OPEB plan investments was applied to all periods of projected benefit payments to determine the total SEAD-OPEB liability. \nSensitivity of the System's proportionate share of the net SEAD-OPEB liability to changes in the discount rate: The following presents the System's proportionate share of the net SEAD-OPEB liability calculated using the discount rate of 7.50%, as well as what the System's proportionate share of the net SEAD-OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate (dollars in thousands): \n \nSystem's proportionate share of the net OPEB liability (asset) \n \n1% Decrease (6.50%) \n$ (274) \n \nCurrent discount \nrate (7.50%) \n(501) \n \n1% Increase (8.50%) \n(687) \n \nSEAD-OPEB plan fiduciary net position: Detailed information about the SEAD-OPEB plan's fiduciary net position is presented in the Combining Statement of Fiduciary Net Position on page 24 and the Combining Statement of Changes in Fiduciary Net Postion on page 26. \nGeneral Information about the Georgia State Employees Postemployment Benefit Fund (State OPEB Fund) \nPlan description: The State OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for employees of State organizations (including technical colleges) and other entities authorized by law to contract with the Department of Community Health (DCH) for inclusion in the plan. \nBenefits provided: Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from ERS, LRS, GJRS, Teachers Retirement System (TRS) or PSERS. If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare-eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The State OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the State OPEB Fund is permitted. \nContributions: As established by the DCH Board of Trustees, the State OPEB Fund is substantially funded on a pay-as-you-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. \n(continued) 63 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nContributions to the State OPEB Fund from the System were $926 thousand for the year ended June 30, 2018. Active employees are not required to contribute to the State OPEB Fund. \nOPEB Liabilities and OPEB Expense related to State OPEB Fund \nAt June 30, 2018, the System reported a liability of approximately $7.6 million for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2017. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2016. An expected total OPEB liability as of June 30, 2017 was determined using standard roll-forward techniques. The System's proportionate share of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2017. At June 30, 2017, the System's proportionate share was 0.185830%, which was a decrease of 0.002001% from its proportionate share measured as of June 30, 2016. For the year ended June 30, 2018, the System's recognized OPEB expense was $292.1 thousand. \nActuarial assumptions: The total OPEB liability as of June 30, 2017 was determined by an actuarial valuation as of June 30, 2016 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2017: \n \nInflation Salary increase: Investment rate of return \n \n2.75% 3.25  7.00%, including inflation 7.50%, net of State OPEB plan investment expense, including inflation \n \nHealthcare trend rate: Pre-Medicare Eligible Medicare Eligible \nUltimate trend rate: Pre-Medicare Eligible Medicare Eligible \nYear of Ultimate trend rate \n \n7.75% 5.75% \n5.00% 5.00% 2022 \n \nMortality rates were based on the RP-2000 Combined Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale BB. The RP-2000 Combined Mortality Table projected to 2025 with projection scale BB and set forward 2 years or both males and females is used for the period after service retirement and for dependent beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB and set back 7 years for males and set forward 3 years for females is used for the period after disability retirement. \n \nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2014. \n \nProjection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation. \n \nAdditionally, there was a change that affected measurement of the total OPEB liability since the prior measurement date. The methodology used to determine employee and retiree participation in the State OPEB Fund is based on their current or last employer payroll location. Current and former employees of State organizations (including technical colleges, community service boards and public health departments) are allocated to the State OPEB Fund irrespective of retirement system affiliation. \n \nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of \n(continued) 64 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \ninvestment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset Class Local Government Investment Pool \n \nTarget allocation 100% \n \nLong-term expected real rate of return 3.88% \n \nDiscount rate: The discount rate has changed since the prior measurement date from 3.09% to 3.60%. In order to measure the total OPEB liability for the State OPEB Fund, a single equivalent interest rate of 3.60% was used as the discount rate. This is comprised mainly of the yield or index rate for 20-year tax-exempt general obligation municipal bonds with an average rating of AA or higher (3.56% per the Bond Buyers Index). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2115. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be available to make OPEB payments for inactive employees through year 2029. Therefore, the calculated discount rate of 3.60% was applied to all periods of projected benefit payments to determine the total OPEB liability. \nSensitivity of the System's proportionate share of the net State OPEB liability to changes in the discount rate: The following presents the System's proportionate share of the net OPEB liability calculated using the discount rate of 3.60%, as well as what the System's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.60%) or 1-percentage-point higher (4.60%) than the current discount rate (dollars in thousands): \n \nSystem's proportionate share of the net OPEB liability \n \n1% Decrease (2.60%) \n$ 9,054 \n \nCurrent discount \nrate (3.60%) \n7,571 \n \n1% Increase (4.60%) \n6,387 \n \nSensitivity of the System's proportionate share of the net State OPEB liability to changes in the healthcare cost trend rates: The following presents the System's proportionate share of the net OPEB liability, as well as what the System's proportionate share of the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates (dollars in thousands): \n \nSystem's proportionate share of the net OPEB liability \n \n1% Decrease \n$ 6,258 \n \nCurrent discount \nrate \n7,571 \n \n1% Increase \n9,234 \n \nState OPEB plan fiduciary net position: Detailed information about the State OPEB Benefit plan's fiduciary net position is available in the Comprehensive Annual Financial Report (CAFR) which is publicly available at https:// sao.georgia.gov/comprehensive-annual-financial-reports. \n \n(continued) 65 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nDeferred Outflows of Resources and Deferred Inflows of Resources for SEAD-OPEB and State OPEB Fund \nAt June 30, 2018, the System reported deferred outflows of resources and deferred inflows of resources related to SEAD-OPEB and the State OPEB Fund from the following sources (dollars in thousands): \n \nDeferred outflows of resources: Differences between expected and actual experience Change of assumptions Net difference between projected and actual earnings on plan investments Changes in proportion and differences between the System's contributions and proportionate share of contributions System's contributions subsequent to the measurement date \n \nSEAD-OPEB Plan $ \n-- -- \n-- \n-- \n-- \n \nTotal deferred outflows of resources \n \n$ \n \n-- \n \nState OPEB Fund -- -- 33 \n-- 905 938 \n \nTotal -- -- 33 \n-- 905 938 \n \nDeferred inflows of resources: Differences between expected and actual experience Change of assumptions Net difference between projected and actual earnings on plan investments Changes in proportion and differences between the System's contributions and proportionate share of contributions System's contributions subsequent to the measurement date \n \nSEAD-OPEB Plan $ \n-- -- \n77 \n4 \n-- \n \nTotal deferred intflows of resources \n \n$ \n \n81 \n \nState OPEB Fund -- \n548 -- \n72 -- 620 \n \nTotal -- \n548 77 \n76 -- 701 \n \nSEAD-OPEB amounts reported as deferred outflows of resources and deferred inflows of resources related to SEAD-OPEB will be recognized in OPEB expense as follows (dollars in thousands): \n \nYear ended June 30: \n2019 2020 2021 2022 2023 Thereafter \n \n$ (21) (21) (20) (19) -- -- \n \n(continued) 66 \n \n Notes to Financial Statements \nJune 30, 2018 \n \nFinancial Section \n \nState OPEB Fund employer contributions subsequent to the measurement date of $905,444 are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to SEAD-OPEB will be recognized in OPEB expense as follows (dollars in thousands): \n \nYear ended June 30: \n2019 2020 2021 2022 2023 Thereafter \n \n$ (179) (179) (179) (50) -- -- \n \n67 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) Schedules of Employers' and Nonemployers' Contributions - Defined Benefit Plans \nYear ended June 30, 2018 (In thousands) \n(continued) 68 \n \nEmployees' Retirement System1 \nPublic School Employees Retirement System2 \nLegislative Retirement System3 \n \nYear ended \n6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 \n6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 \n6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 \n \nActuarially determined contribution \n(a) \n$ 282,103 263,064 261,132 273,623 358,376 428,982 517,220 595,124 624,623 650,073 \n5,529 5,530 7,509 15,884 24,829 27,160 28,461 28,580 26,277 29,276 \n-- -- -- -- -- -- -- -- -- -- \n \nContributions in relation to the actuarially determined contribution \n(b) \n281,206 263,064 261,132 274,034 358,992 429,752 518,163 595,566 625,281 652,167 \n5,529 5,530 7,509 15,884 24,829 27,160 28,461 28,580 26,277 29,276 \n71 75 75 76 128 45 -- -- -- -- \n \nContribution deficiency (excess) (a-b) \n897 -- -- \n(411) (616) (770) (943) (442) (658) (2,094) \n-- -- -- -- -- -- -- -- -- -- \n(71) (75) (75) (76) (128) (45) \n-- -- -- -- \n \nCovered payroll \n(c) \n2,674,155 2,571,042 2,486,780 2,414,884 2,335,773 2,335,773 2,353,225 2,390,457 2,565,918 2,635,896 \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n \nContributions as a percentage \nof covered payroll (b/c) \n10.5 % 10.2 10.5 11.3 15.4 18.4 22.0 24.9 24.4 24.7 \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) Schedules of Employers' and Nonemployers' Contributions - Defined Benefit Plans \nYear ended June 30, 2018 (In thousands) \n69 \n \nGeorgia Judicial Retirement System \nGeorgia Military Pension Fund4 \nState Employees' Assurance Department Retired and Vested Inactive Members Trust Fund \n \nYear Ended \n6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 \n6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 \n6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 \n \nActuarially determined contribution \n(a) \n$ 1,703 2,600 1,932 2,083 2,279 2,375 4,261 7,623 6,684 6,566 \n1,323 1,434 1,282 1,521 1,703 1,892 1,893 1,990 2,018 2,377 \n-- -- -- 12,724 5,009 -- -- -- -- -- \n \nContributions in relation to the actuarially determined contribution \n(b) \n1,703 2,600 1,932 2,083 2,279 2,375 4,261 7,623 6,684 6,566 \n1,323 1,434 1,282 1,521 1,703 1,892 1,893 1,990 2,018 2,377 \n-- -- -- 12,724 5,009 -- -- -- -- -- \n \nContribution deficiency (excess) (a-b) \n-- -- -- -- -- -- -- -- -- -- \n-- -- -- -- -- -- -- -- -- -- \n-- -- -- -- -- -- -- -- -- -- \n \nCovered payroll \n(c) \n52,803 51,293 52,331 51,898 52,807 54,787 54,272 57,401 59,695 60,572 \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \nn/a n/a n/a 2,085,902 1,855,185 n/a n/a n/a n/a n/a \n \nContributions as a percentage \nof covered payroll (b/c) \n3.2 % 5.1 3.7 4.0 4.3 4.3 7.9 13.3 11.2 10.8 \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \nn/a n/a n/a 1.0 -- n/a n/a n/a n/a n/a \n \nThis data, except for annual covered payroll, was provided by the System's actuary. \n1 In 2009, an employer group within ERS did not contribute the full actuarially determined contribution. This employer is making additional contributions to repay this shortfall. \n2 No statistics regarding covered payroll are available. Contributions are not based upon members' salaries but are simply $4.00 per member, per month, for nine months, each fiscal year if hired prior to July 1, 2012 and $10 per month, per member, for nine months, if hired after July 1, 2012. \n3 The Georgia General Assembly made contributions in some years that were not required. 4 No statistics regarding covered payroll are available. Active and inactive plan member information is maintained by the Georgia Department of \nDefense. See accompanying notes to required supplementary schedules and accompanying independent auditors' report. \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) Schedules of Employers' and Nonemployers' Net Pension/OPEB Liability and Related Ratios  Defined Benefit Plans \n(In thousands) \n(continued) 70 \n \nJune 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 \n \nEmployees' Retirement System: \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployers' and nonemployers' net pension liability \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \nCovered payroll \n \n$ \n \nEmployers' and nonemployers' net pension liability as a percentage of \n \ncovered payroll \n \n17,628,219 13,517,186 \n4,111,033 76.68 % \n2,635,896 \n155.96 % \n \n17,159,634 13,098,299 \n4,061,335 76.33 % \n2,565,918 \n158.28 % \n \n17,103,987 12,373,567 \n4,730,420 72.34 % \n2,390,457 \n197.89 % \n \n17,019,362 12,967,964 \n4,051,398 76.20 % \n2,353,225 \n172.16 % \n \n17,042,149 13,291,531 \n3,750,618 77.99 % \n2,335,773 \n160.57 % \n \nPublic School Employees Retirement System: \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployers' and nonemployers' net pension liability \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability Covered payroll Employers' and nonemployers' net pension liability as a percentage of \ncovered payroll \n \n1,072,165 914,138 \n158,027 85.26 % n/a \nn/a \n \n1,013,163 868,134 \n145,029 85.69 % n/a \nn/a \n \n992,292 803,775 \n188,517 81.00 % n/a \nn/a \n \n946,200 823,150 \n123,050 87.00 % n/a \nn/a \n \n930,745 821,733 \n109,012 88.29 % n/a \nn/a \n \nLegislative Retirement System: \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployer's net pension asset \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability Covered payroll Employer's net pension asset as a percentage of \ncovered payroll \n \n26,304 34,189 \n(7,885) 129.98 % \nn/a \nn/a \n \n25,898 32,981 \n(7,083) 127.35 % \nn/a \nn/a \n \n26,142 30,975 \n(4,833) 118.49 % \nn/a \nn/a \n \n25,271 32,359 \n(7,088) 128.05 % \nn/a \nn/a \n \n25,216 32,794 \n(7,578) 130.05 % \nn/a \nn/a \n \nGeorgia Judicial Retirement System: \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployers' and nonemployers' net pension asset \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \nCovered payroll \n \n$ \n \nEmployers' and nonemployers' net pension asset as a \n \npercentage of covered payroll \n \n428,624 466,657 \n(38,033) 108.87 % 60,572 \n(62.79) % \n \n394,736 441,182 \n(46,446) 111.77 % 59,695 \n(77.81) % \n \n368,669 403,011 \n(34,342) 109.32 % 57,401 \n(59.83) % \n \n357,081 404,852 \n(47,771) 113.38 % 54,272 \n(88.02) % \n \n350,443 400,790 \n(50,347) 114.37 % 54,787 \n(91.90) % \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) Schedules of Employers' and Nonemployers' Net Pension/OPEB Liability and Related Ratios  Defined Benefit Plans \n(In thousands) \n71 \n \nJune 30, 2018 \n \nJune 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 \n \nGeorgia Military Pension Fund: \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployer's net pension liability \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability Covered payroll Employer's net pension liability as a percentage of \ncovered payroll \n \n43,204 23,653 \n19,551 54.75 % n/a \nn/a \n \n40,085 20,711 \n19,374 51.67 % n/a \nn/a \n \n36,950 17,717 \n19,233 47.95 % n/a \nn/a \n \n33,343 16,712 \n16,631 50.12 % n/a \nn/a \n \n31,511 15,251 \n16,260 48.40 % n/a \nn/a \n \nState Employees' Assurance Department - Retired and Vested \n \nInactive Members Trust Fund: \n \nTotal OPEB liability \n \n$ \n \nPlan fiduciary net position \n \nEmployer's net OPEB asset \n \n$ \n \nPlan fiduciary net position as a percentage of the total OPEB liability \n \nCovered payroll \n \n$ \n \nEmployer's net OPEB asset as a percentage of \n \ncovered payroll \n \n918,816 1,189,462 \n(270,646) 129.46 % \n1,328,485 \n(20.37) % \n \n861,346 1,121,251 \n(259,905) 130.17 % \n1,383,860 \n(18.78) % \n \n-- -- \n-- --% -- \n--% \n \n-- -- \n-- --% -- \n--% \n \n-- -- \n-- --% -- \n--% \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) Schedules of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability  Defined Benefit Plans \n(In thousands) \n(continued) 72 \n \nEmployees' Retirement System: Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions \nNet change in total pension liability Total pension liability-beginning \nTotal pension liability-end (a) \nPlan fiduciary net position: Contributions-employer Contributions-nonemployer Contributions-member Administrative expense allotment Net investment income Benefit payments Administrative expense Refunds of contributions Other1 \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \nPlan fiduciary net position-end (b) \nNet pension liability-end (a)-(b) \n \nJune 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 \n \n$ \n \n129,294 \n \n1,233,689 \n \n31,097 \n \n180,655 \n \n314,733 \n \n(1,413,298) \n \n(7,585) \n \n468,585 17,159,634 \n17,628,219 \n \n639,302 12,865 37,130 10 \n1,166,013 (1,413,298) \n(8,056) (7,585) (7,494) \n \n418,887 13,098,299 \n \n13,517,186 \n \n$ \n \n4,111,033 \n \n125,910 1,230,175 \n30,563 72,315 \n-- (1,394,283) \n(9,033) \n55,647 17,103,987 \n17,159,634 \n613,201 12,080 35,863 10 \n1,475,626 (1,394,283) \n(8,732) (9,033) \n-- \n724,732 12,373,567 \n13,098,299 \n4,061,335 \n \n143,043 1,225,650 \n-- (238) 70,890 (1,347,633) (7,087) \n84,625 17,019,362 \n17,103,987 \n583,082 12,484 31,961 10 \n141,292 (1,347,633) \n(8,506) (7,087) \n-- \n(594,397) 12,967,964 \n12,373,567 \n4,730,420 \n \n145,045 1,227,846 \n-- (53,950) \n-- (1,334,278) \n(7,450) \n(22,787) 17,042,149 \n17,019,362 \n505,668 12,495 33,713 10 \n474,147 (1,334,278) \n(7,872) (7,450) \n-- \n(323,567) 13,291,531 \n12,967,964 \n4,051,398 \n \n150,075 1,224,380 \n-- -- -- (1,305,998) (8,757) \n59,700 16,982,449 \n17,042,149 \n418,807 10,945 32,423 -- \n2,021,748 (1,305,998) \n(7,440) (8,757) \n-- \n1,161,728 12,129,803 \n13,291,531 \n3,750,618 \n \n1 The System is a participating employer in the Georgia State Employees Postemployment Benefit Fund and the State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund. Pursuant to the requirements of GASB Statement No. 75, the fiscal year 2018 beginning Fiduciary Net Position was restated by $7,494,507. The restatement of net position was made for reporting purposes to reflect the impact of recording the initial deferred outflows of resources, net OPEB liability, and net OPEB asset. For actuarial purposes, this adjustment is being recognized in fiscal year 2018 and beginning fiduciary net position was not restated. \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. \nSee accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) Schedules of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability  Defined Benefit Plans \n(In thousands) \n(continued) 73 \n \nJune 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 \n \nPublic School Employees Retirement System: Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions \nNet change in total pension liability Total pension liability-beginning \nTotal pension liability-end (a) \nPlan fiduciary net position: Contributions-nonemployer Contributions-member Net investment income Benefit payments Administrative expense Refunds of contributions \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \nPlan fiduciary net position-end (b) \nNet pension liability-end (a)-(b) \n \n$ \n \n13,180 \n \n73,643 \n \n17,289 \n \n(3,943) \n \n21,354 \n \n(61,820) \n \n(701) \n \n59,002 1,013,163 \n1,072,165 \n \n29,276 2,162 \n78,418 (61,820) \n(1,331) (701) \n \n46,004 868,134 \n \n914,138 \n \n$ \n \n158,027 \n \n12,788 72,157 \n-- (3,665) \n-- (59,378) \n(1,031) \n20,871 992,292 \n1,013,163 \n26,277 2,084 \n97,715 (59,378) \n(1,308) (1,031) \n64,359 803,775 \n868,134 \n145,029 \n \n11,952 68,776 \n-- (9,483) 33,215 (57,903) \n(465) \n46,092 946,200 \n992,292 \n28,580 1,925 9,809 \n(57,903) (1,321) (465) \n(19,375) 823,150 \n803,775 \n188,517 \n \n12,088 67,652 \n-- (6,858) \n-- (56,972) \n(455) \n15,455 930,745 \n946,200 \n28,461 1,800 \n30,129 (56,972) \n(1,545) (456) \n1,417 821,733 \n823,150 \n123,050 \n \n11,049 66,143 \n-- -- -- (56,189) (514) \n20,489 910,256 \n930,745 \n27,160 1,659 \n123,799 (56,189) \n(1,450) (514) \n94,465 727,268 \n821,733 \n109,012 \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) Schedules of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability  Defined Benefit Plans \n(In thousands) \n(continued) 74 \n \nLegislative Retirement System: Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions \nNet change in total pension liability Total pension liability-beginning \nTotal pension liability-end (a) \nPlan fiduciary net position: Contributions-employer Contributions-member Net investment income Benefit payments Administrative expense Refunds of contributions \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \nPlan fiduciary net position-end (b) \nNet pension asset-end (a)-(b) \n \nJune 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 \n \n$ \n \n359 \n \n1,875 \n \n-- \n \n(481) \n \n447 \n \n(1,772) \n \n(22) \n \n406 25,898 \n26,304 \n \n-- 323 2,962 (1,772) (283) (22) \n \n1,208 32,981 \n34,189 \n \n$ \n \n(7,885) \n \n357 1,892 \n-- (655) \n-- (1,763) \n(75) \n(244) 26,142 \n25,898 \n-- 327 3,741 (1,763) (224) (75) \n2,006 30,975 \n32,981 \n(7,083) \n \n331 1,829 \n-- (465) 938 (1,724) \n(38) \n871 25,271 \n26,142 \n-- 328 363 (1,724) (313) (38) \n(1,384) 32,359 \n30,975 \n(4,833) \n \n338 1,824 \n-- (325) \n-- (1,756) \n(26) \n55 25,216 \n25,271 \n-- 327 1,189 (1,756) (169) (26) \n(435) 32,794 \n32,359 \n(7,088) \n \n344 1,799 \n-- -- -- (1,801) (30) \n312 24,904 \n25,216 \n45 282 4,969 (1,801) (152) (30) \n3,313 29,481 \n32,794 \n(7,578) \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) Schedules of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability  Defined Benefit Plans \n(In thousands) \n(continued) 75 \n \nGeorgia Judicial Retirement System: Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions \nNet change in total pension liability Total pension liability-beginning \nTotal pension liability-end (a) \nPlan fiduciary net position: Contributions-employer Contributions-nonemployer Contributions-member Net investment income Benefit payments Administrative expense Refunds of contributions \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \nPlan fiduciary net position-end (b) \nNet pension asset-end (a)-(b) \n \nJune 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 \n \n$ \n \n13,019 \n \n28,666 \n \n3,442 \n \n6,379 \n \n7,466 \n \n(24,934) \n \n(150) \n \n33,888 394,736 \n \n428,624 \n \n4,725 1,841 4,910 39,877 (24,934) \n(794) (150) \n \n25,475 441,182 \n \n466,657 \n \n$ \n \n(38,033) \n \n12,514 26,826 \n3,419 5,258 \n-- (21,784) \n(166) \n26,067 368,669 \n394,736 \n4,081 2,603 4,906 49,259 (21,784) \n(728) (166) \n38,171 403,011 \n441,182 \n(46,446) \n \n12,713 26,058 \n-- (3,603) (4,308) (19,011) \n(261) \n11,588 357,081 \n368,669 \n4,754 2,869 5,507 5,055 (19,011) \n(754) (261) \n(1,841) 404,852 \n403,011 \n(34,342) \n \n7,751 25,566 \n-- (7,542) \n-- (18,365) \n(772) \n6,638 350,443 \n357,081 \n2,696 1,564 5,061 14,697 (18,365) \n(819) (772) \n4,062 400,790 \n404,852 \n(47,771) \n \n7,584 24,530 \n-- -- -- (17,441) (22) \n14,651 335,792 \n350,443 \n1,373 1,002 4,731 60,012 (17,441) \n(754) (22) \n48,901 351,889 \n400,790 \n(50,347) \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) Schedules of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability  Defined Benefit Plans \n(In thousands) \n(continued) 76 \n \nJune 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 \n \nGeorgia Military Pension Fund: \n \nTotal pension liability: \n \nService cost \n \n$ \n \n84 \n \nInterest \n \n2,964 \n \nBenefit changes \n \n-- \n \nDifferences between expected and actual experience \n \n116 \n \nChanges of assumptions \n \n1,093 \n \nBenefit payments \n \n(1,138) \n \nRefunds of contributions \n \n-- \n \nNet change in total pension liability Total pension liability-beginning \nTotal pension liability-end (a) \nPlan fiduciary net position: Contributions-employer Contributions-member Net investment income Benefit payments Administrative expense Refunds of contributions Other \n \n3,119 40,085 \n43,204 \n2,377 -- \n1,928 (1,138) \n(225) -- -- \n \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \nPlan fiduciary net position-end (b) \nNet pension liability-end (a)-(b) \n \n2,942 20,711 \n \n23,653 \n \n$ \n \n19,551 \n \n89 2,732 \n-- 1,356 \n-- (1,042) \n-- \n3,135 36,950 \n40,085 \n2,018 -- \n2,262 (1,042) \n(244) -- -- \n2,994 17,717 \n20,711 \n19,374 \n \n73 2,465 \n-- 950 1,082 (963) \n-- \n3,607 33,343 \n36,950 \n1,990 -- 240 \n(963) (262) \n-- -- \n1,005 16,712 \n17,717 \n19,233 \n \n73 2,330 \n-- 326 \n-- (897) \n-- \n1,832 31,511 \n33,343 \n1,893 -- \n585 (896) (121) \n-- -- \n1,461 15,251 \n16,712 \n16,631 \n \n73 2,223 \n-- -- -- (841) -- \n1,455 30,056 \n31,511 \n1,892 -- \n2,179 (841) (110) -- -- \n3,120 12,131 \n15,251 \n16,260 \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) Schedules of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability  Defined Benefit Plans \n(In thousands) \n77 \n \nJune 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 \n \nState Employees' Assurance Department Retired and Vested \n \nInactive Members Trust Fund: \n \nTotal OPEB liability: \n \nService cost \n \n$ \n \n3,695 \n \n3,959 \n \n-- \n \n-- \n \n-- \n \nInterest \n \n63,242 \n \n61,076 \n \n-- \n \n-- \n \n-- \n \nBenefit changes \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \nDifferences between expected and actual experience \n \n4,697 \n \n-- \n \n-- \n \n-- \n \n-- \n \nChanges of assumptions \n \n22,085 \n \n-- \n \n-- \n \n-- \n \n-- \n \nBenefit payments \n \n(36,249) \n \n(36,058) \n \n-- \n \n-- \n \n-- \n \nRefunds of contributions \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \nNet change in total OPEB liability Total OPEB liability-beginning \nTotal OPEB liability-end \nPlan fiduciary net position: Contributions  employer Insurance premiums  member Net investment income Benefit payments Administrative expense Refunds of contributions Other \n \n57,470 861,346 \n918,816 \n \n28,977 832,369 \n861,346 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n1 \n \n-- \n \n-- \n \n-- \n \n3,599 \n \n3,793 \n \n-- \n \n-- \n \n-- \n \n101,542 \n \n125,550 \n \n-- \n \n-- \n \n-- \n \n(36,249) \n \n(36,058) \n \n-- \n \n-- \n \n-- \n \n(681) \n \n(576) \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \nPlan fiduciary net position-end (b) \n \n68,211 1,121,251 \n1,189,462 \n \n92,710 1,028,541 \n1,121,251 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \nNet OPEB asset-end (a)-(b) \n \n$ \n \n(270,646) \n \n(259,905) \n \n-- \n \n-- \n \n-- \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedules and accompanying independent auditors' report. \n \n Required Supplementary Information (UNAUDITED) \nSchedule of Investment Returns Year ended June 30, 2018 \n \nFinancial Section \n \n2018 \n \n2017 \n \nPooled Investment Fund: Annual money-weighted rate of return, net of investment expense \n \n0.6 % \n \n2.9 % \n \nSchedule is intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n2016 (7.2) % \n \n2015 (5.3) % \n \n2014 6.0 % \n \n78 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) \nSchedules of the System's Proportionate Share of the Net OPEB Liability Year ended June 30, 2018 (In thousands) \n \nSEAD-OPEB: System's proportionate share of the net OPEB liability (asset) System's proportionate share of the net OPEB liability (asset) System's covered payroll \nSystem's proportionate share of the net OPEB liability (asset) as a percentage of its covered payroll \nPlan fiduciary net position as a percentage of the total OPEB liability \nState OPEB Fund: System's proportion of the net OPEB liability System's proportionate share of the net OPEB liability System's covered payroll \nSystem's proportionate share of the net OPEB liability as a percentage of its covered payroll \nSystem's fiduciary net position as a percentage of the total OPEB liability \n \nJune 30, 2018 \n \n0.192864 % \n \n$ \n \n(501) \n \n2,769 \n \n(18.09) % \n \n130.17 % \n \n0.185830 % \n \n$ \n \n7,571 \n \n5,293 \n \n143.04 % \n \n17.34 % \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedules and accompanying independent auditors' report. \n \n79 \n \n Required Supplementary Information (UNAUDITED) \nSchedules of the System's Contributions to OPEB Plans Year ended June 30, 2018 (In thousands) \n \nFinancial Section \n \nJune 30, 2018 \n \nSEAD-OPEB: \n \nContractually required contribution* \n \n$ \n \nContributions in relation to the contractually required contribution \n \nContribution deficiency (excess) \n \n$ \n \nSystem's covered payroll \n \n$ \n \nContributions as a percentage of covered payroll \n \nState OPEB Fund: \n \nContractually required contribution \n \n$ \n \nContributions in relation to the contractually required contribution \n \nContribution deficiency (excess) \n \nSystem's covered payroll \n \nContributions as a percentage of covered payroll \n \n*Employer contributions are not currently required for the SEAD-OPEB plan. \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedules and accompanying independent auditors' report. \n \n-- -- -- 2,769 -- % \n905 905 \n-- 5,293 17.10 % \n \n80 \n \n Financial Section \nNotes to Required Supplementary Information (UNAUDITED) \nRequired Supplementary Information Schedules for the System as the Plan: \n(1) Schedule of Employers' and Nonemployers' Contributions  Defined Benefit Plans \nThis schedule presents the required contributions and the percent of required contributions actually contributed. \n(2) Schedule of Employers' and Nonemployers' Net Pension/OPEB Liability and Related Ratios  Defined Benefit Plans \nThe components of the net pension/OPEB liability as of the fiscal year end and the fiduciary net position as a percentage of the total pension/OPEB liability as of that date are presented in this schedule. This trend information will be accumulated to display a 10-year presentation. \n(3) Schedule of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability  Defined Benefit Plans \nNet pension/OPEB liability, which is measured as total pension/OPEB liability less the amount of the fiduciary net position, is presented in this schedule. This trend information will be accumulated to display a 10-year presentation. \n(4) Schedule of Investment Returns \nThis schedule presents historical trend information about the annual money-weighted rate of return on plan investments, net of plan investment expense. This trend information will be accumulated to display a 10-year presentation. (5) Individual Plan Information \nThis note provides information about changes of benefit terms, changes of assumptions, and methods and assumptions used in calculations of actuarially determined contributions. \n(a) Employees' Retirement System \nChanges of benefit terms  \n A new benefit tier was added for members joining the System on and after July 1, 2009.  A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2016.  A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2017. \nChanges of assumptions  Subsequent to the June 30, 2017 measurement date, the ERS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the ERS Board's new funding policy, the assumed investment rate of return was reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. Therefore, an assumption change from 7.50% to 7.30% is reflected in the calculation of the total pension liability. \n(b) Public School Employees' Retirement System \nChanges of benefit terms  The member contribution rate was increased from $4 to $10 per month for members joining the System on or after July 1, 2012. The monthly benefit accrual rate was increased from $14.75 to $15.00 per year of creditable service effective July 1, 2017. \nChanges of assumptions  Subsequent to the June 30, 2017 measurement date, the PSERS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the PSERS Board's new funding policy, the assumed investment rate of return was reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. Therefore, an assumption change from 7.50% to 7.30% is reflected in the calculation of the total pension liability. \n(continued) 81 \n \n Financial Section \nNotes to Required Supplementary Information (UNAUDITED) \n(c) Legislative Retirement System \nChanges of benefit terms  none \nChanges of assumptions  Subsequent to the June 30, 2017 measurement date, the ERS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the ERS Board's new funding policy, the assumed investment rate of return was reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. Therefore, an assumption change from 7.50% to 7.30% is reflected in the calculation of the total pension liability. \n(d) Georgia JudicialRetirement System \nChanges of benefit terms  Spouses' benefits were changed for members joining the System on and after July 1, 2012. A 2% cost-of-living adjustment was granted to certain retired members and beneficiaries effective July 1, 2018. \nChanges of assumptions  Subsequent to the June 30, 2017 measurement date, the GJRS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the GJRS Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. Therefore, an assumption change from 7.50% to 7.30% is reflected in the calculation of the total pension liability. \n(e) Georgia Military Pension Fund \nChanges of benefit terms  none \nChanges of assumptions  Subsequent to the June 30, 2017 measurement date, the ERS Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the ERS Board's new funding policy, the assumed investment rate of return was reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. Therefore, an assumption change from 7.50% to 7.30% is reflected in the calculation of the total pension liability. \n(f) State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEAD-OPEB) as a plan \nChanges of benefit terms  none \nChanges of assumptions  Subsequent to the June 30, 2017 measurement date, the SEAD Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the SEAD Board's new funding policy, the assumed investment rate of return was reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. Therefore, an assumption change from 7.50% to 7.30% is reflected in the calculation of the total pension liability. \n(continued) 82 \n \n Notes to Required Supplementary Information (UNAUDITED) \nJune 30, 2018 \n \nFinancial Section \n \nThe following actuarial methods and assumptions were used to determine the most recent contribution rates reported in the schedules of employer and nonemployer contributions calculated as of June 30, three years prior to the end of the first calendar year in which contributions are reported: \n \nActuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases Investment rate of return \nCost of living adjustments \n \nERS \nEntry age Level dollar, closed 19.4 years 5-year smoothed market 2.75% 3.25-7.00%, including inflation 7.50% net of pension plan investment expense, including inflation n/a \n \nPSERS \nEntry age Level dollar, closed 22.9 years 5-year smoothed market 2.75% n/a 7.50% net of pension plan investment expense, including inflation 1.5% semi-annually \n \nLRS \nEntry age Level dollar, open n/a 5-year smoothed market 2.75% n/a 7.50% net of pension plan investment expense, including inflation 1.5% annually \n \nActuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases Investment rate of return \nCost of living adjustments \n \nGJRS \nEntry age Level percent of pay, closed 19.5 years 5-year smoothed market 2.75% 4.50%, including inflation 7.50% net of pension plan investment expense, including inflation n/a \n \nGMPF \nEntry age Level dollar, closed 18.2 years 5-year smoothed market 2.75% n/a 7.50% net of pension plan investment expense, including inflation n/a \n \nActuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases: \nERS GJRS LRS Investment rate of return \nCost of living adjustments \n \nSEAD - OPEB \nProjected unit credit Level dollar, open n/a Market value of assets 2.75% \n3.25-7.00%, including inflation 4.50%, including inflation n/a 7.50% net of pension plan investment expense, including inflation n/a \n \n(continued) 83 \n \n Notes to Required Supplementary Information (UNAUDITED) \nJune 30, 2018 \n \nFinancial Section \n \nRequired Supplementary Information Schedules for the System as a participating employer: \n \n(1) \n \nSchedules of the System's Proportionate Share of the Net OPEB Liability \n \nThe information in this schedule presents historical information related to the OPEB liability that is recognized \n \nby the System in the current period financial statements. This trend information will be accumulated to display \n \na 10-year presentation. \n \n(2) \n \nSchedules of the System's Contributions to OPEB Plans \n \nThis schedule presents the required contributions and the percent of required contributions actually \n \ncontributed. \n \n(3) \n \nIndividual Plan Information \n \nThis note provides information about changes of benefit terms, changes of assumptions, and methods and \n \nassumptions used in calculations of actuarially determined contributions. \n \n(a) SEAD-OPEB Changes of benefit terms  none \n \nChanges of assumptions  On December 17, 2015, the SEAD Board adopted recommended changes to the economic and demographic assumptions utilized by the Plan. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. \n \n(b) State OPEB Fund Changes of benefit terms  In the June 30, 2010 actuarial valuation, there was a change of benefit terms to require Medicare-eligible recipients to enroll in a Medicare Advantage plan to receive the State subsidy. \n \nChanges of assumptions  In the revised June 30, 2017 actuarial valuation, there was a change relating to employee allocation. Employees were previously allocated based on their Retirement System membership, and currently employees are allocated based on their current employer payroll location. \n \nIn the June 30, 2015 actuarial valuation, decremental and underlying inflation assumptions were changed to reflect the Retirement Systems' experience studies. \n \nIn the June 30, 2012 actuarial valuation, a data audit was performed and data collection procedures and assumptions were changed. \n \n84 \n \n Financial Section \nAdditional Information \nStatement of Changes in Assets and Liabilities - Survivors Benefit Fund Year ended June 30, 2018 (In thousands) \n \nBalance at June 30, 2017 \n \nAssets: \n \nCash and cash equivalents \n \n$ \n \nEquity in pooled investment fund \n \n92 135,951 \n \nTotal assets \n \n136,043 \n \nAdditions \n \nDeductions \n \n-- \n \n1 \n \n12,499 \n \n-- \n \n12,499 \n \n1 \n \nBalance at June 30, 2018 \n91 148,450 148,541 \n \nLiablities: Due to other funds/plans \nTotal liabilities \n \n136,043 \n \n$ \n \n136,043 \n \n12,499 12,499 \n \n(1) \n \n148,541 \n \n(1) \n \n148,541 \n \nSee accompanying independent auditors' report. \n \n(continued) 85 \n \n Financial Section \n \nAdditional Information \nSchedule of Administrative Expenses - Contributions and Expenses Year ended June 30, 2018 (In thousands) \n \nContributions from fiduciary funds: Employees' Retirement System Public School Employees Retirement System Legislative Retirement System Georgia Judicial Retirement System Georgia Military Pension Fund Superior Court Judges Retirement Fund District Attorneys Retirement Fund Georgia Defined Contribution Plan 401(k) Plan 457 Plan State Employees' Assurance Department - OPEB \nTotal fiduciary funds \nContributions from proprietary fund: State Employees' Assurance Department Active Members Fund \nTotal contributions \nExpenses: Personal services: Salaries and fringes Retirement contributions FICA Health insurance Miscellaneous \nCommunications: Postage Publications and printing Telecommunications Travel \nProfessional services: Accounting services Computer services Contracts Actuarial services Medical services Audit fees Legal services \nManagement fees: Building maintenance \nOther services and charges: Temporary services Supplies and materials Repairs and maintenance Courier services Depreciation Miscellaneous Office equipment \nTotal expenses \nNet income \n \n2018 \n \n8,056 \n \n1,331 \n \n283 \n \n794 \n \n225 \n \n2 \n \n3 \n \n852 \n \n3,639 \n \n442 \n \n$ \n \n681 \n \n16,308 \n \n76 16,384 \n \n5,391 1,268 \n389 1,036 \n55 \n8,139 \n270 14 62 21 \n367 \n746 961 3,529 289 152 439 \n36 \n6,152 \n \n617 \n \n650 43 26 3 \n309 76 2 \n \n1,109 \n \n16,384 \n \n$ \n \n-- \n \nSee accompanying independent auditors' report. 86 \n \n Additional Information \nSchedule of Investment Expenses Year ended June 30, 2018 (with comparative amounts for the year ended June 30, 2017) \n \nFinancial Section \n \nInvestment advisory and custodial fees Miscellaneous \nTotal investment expenses \n \n2018 \n \n2017 \n \n$ \n \n8,100,789 $ \n \n6,753,247 \n \n13,609,529 \n \n12,584,983 \n \n$ \n \n21,710,318 $ \n \n19,338,630 \n \nSee accompanying independent auditors' report. \n \n87 \n \n Investment Section \nBuilding a Bridge to a More Comfortable Retirement \nButt Memorial Bridge - Augusta \n \n Investment Section \n \nInvestment Overview \nAnnual economic growth as measured by Real GDP rose by 2.9% and the rate of growth strengthened on the back of tax cuts. Broadly speaking, international economies were slowing down at the end of the fiscal year due to a number of issues ranging from Brexit to potential trade wars to a stronger dollar. All in all though, it was a good year for equities with the U.S. stock market up in the midteens and foreign markets up over 7%. \nWe continually emphasize that the pension plan has a long-term investment horizon and that short-term concerns should not drive the investment decisions. The System invests primarily in a mix of liquid, high quality bonds and stocks. In addition, the System continues to build its private markets program in a disciplined manner. These types of investments further diversify the portfolio and allow the System to participate in rising markets while moderating the risks on the downside. A high quality balanced fund has proven to be a successful strategy in a variety of markets over long periods of time. \nAs in previous years, the bias to quality was a primary goal and was successfully met. \"Conservation of Capital\" and \"Conservatism\" remain the guiding principles for investment decisions. The Board of Trustees continues to use a diversified portfolio to accomplish these objectives. \nThere were very few weak spots in the U.S. economy during the fiscal year. Nonfarm Payroll growth averaged over 200,000 new jobs per month. You have to go back almost five decades to find initial unemployment claims this low, despite there being over twice as many people employed today than in the late 1960s. Central banks in aggregate are still providing accommodation, but that is largely due to Japan. The U.S. is tightening and the European Central Bank is indicating that it will end their version of QE in the foreseeable future. As expected, this is causing pain for emerging markets and some weaker developed markets. \nStudies undertaken to evaluate the investment returns of pension funds over very long-time horizons indicate that the asset allocation decision has the largest impact on the fund's returns. Although the returns for the various asset categories vary from year to year, over the long term, equities typically outperform fixed income and cash by a very wide margin. For that reason, the System has generally maintained a significant equity exposure with the remainder of the fund invested in fixed income securities designed to generate income and preserve capital. \n \nReturns for one, three, five, ten and twenty year periods are presented in this section. Longer time periods, such as the twenty year period, allow for a more valid evaluation of returns, both in absolute terms and relative to an asset class index, by reducing emphasis on the short-term volatility of markets. The Daily Valuation Method, a time-weighted rate of return, was used to calculate returns in a manner consistent with the CFA Institute's objectives as stated in its publication \"Global Investment Performance Standards Handbook,\" third edition. \nThe return for the S\u0026P 500 was 14.4%. The S\u0026P MidCap 400 and the S\u0026P SmallCap 600 indexes had returns of 13.5% and 20.5%, respectively. Generally speaking, the more defensive and interest sensitive sectors underperformed the market while growth stocks continued their outperformance relative to value stocks. \nInternational markets also had strong returns. The MSCI EAFE Index returned 6.8% and the MSCI Emerging Market Index had a return of 8.2%. The dollar was down marginally for the fiscal year. \nInterest rates increased across the maturity spectrum for the second year in a row. The yield curve also flattened as short-term rates rose faster than long-term yields. The total return on the 10-year Treasury Note was (2.7%) and the 30-year Treasury Bond had a (0.1%) return. The return on short-term Treasury bills was 1.3%. \nWe look at two fixed income indexes to measure the bond market's performance. The Bloomberg Barclays Government / Credit Index had a return of (0.6%). It is a broad index containing corporate and government sponsored bonds as well as Treasuries. The Citigroup Treasury / Sponsored / AAA/AA had a return of (0.6%) and is a broad index containing higher rated corporate bonds as well as Treasuries and Government securities. The spread between corporate bonds and Treasury bonds widened during the year leading to generally better performance in Treasuries. \nIn 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.\" \nPrepared by the Division of Investment Services \n \n89 \n \n Investment Section \n \nPooled Investment Fund \nAs of June 30, 2018 (dollar amounts in thousands) \n \nEmployees' Retirement System (ERS) Public School Employees Retirement System (PSERS) Legislative Retirement System (LRS) Georgia Judicial Retirement System (GJRS) State Employees' Assurance Department (SEAD) - Active State Employees' Assurance Department (SEAD) - OPEB Survivors Benefit Fund (SBF) Georgia Military Pension Fund (GMPF) \nTotal \n \n$ \n \n13,468,340 \n \n914,957 \n \n34,216 \n \n466,307 \n \n289,087 \n \n1,189,173 \n \n148,450 \n \n23,715 \n \n$ \n \n16,534,245 \n \nRates of Return \n \n16.0 \n \n14.0 \n \n12.0 \n \n10.0 \n \n8.0 \n \n6.0 \n \n4.0 \n \n2.0 \n \n1 Year \n \n3 Year \n \n5 Year \n \n10 Year \n \nEquities S\u0026P 1500 MSCI ACWI ex US \n \n20 Year \n \n5.0 4.0 3.0 2.0 1.0 \n(1.0 ) \n \nFixed Income Barclays Govt/Credit 1 month T bills \n \n1 Year \n \n3 Year \n \n5 Year \n \n10 Year \n \n20 Year \n \n10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 1 Year \n \nTotal Portfolio CPI \n \n3 Year \n \n5 Year \n \n10 Year \n \n20 Year \n \n1 year 3 year 5 year 10 year 20 year \n \nEquities \n13.4 % 10.4 % 11.6 % \n8.5 % 5.9 % \n \nS\u0026P 1500 \n \nMSCI ACWI Fixed Income Barclay's \n \nex US \n \nGovt/Credit \n \n14.5 % 11.9 % 13.4 % 10.3 % 6.9 % \n \n7.3 % 5.1 % 6.0 % 2.5 % \n-- \n \n(0.5)% 1.3 % 1.8 % 3.4 % 4.7 % \n \n(0.6)% 1.8 % 2.3 % 3.8 % 4.7 % \n \n1 Month T-Bills \n \nTotal Portfolio \n \n1.3 % 0.6 % 0.4 % 0.3 % 1.8 % \n \n9.2 % 7.6 % 8.7 % 7.5 % 6.0 % \n \nNote: Time-weighted rates of return are calculated using the Daily Valuation Method based on market rates of return. 90 \n \nCPI \n2.8 % 1.8 % 1.5 % 1.4 % 2.2 % \n \n Investment Section \n \nAsset Allocation at Fair Value \n \n80.00% \n \n70.00% \n \n60.00% \n \n50.00% \n \n40.00% \n \n30.00% \n \n20.00% \n \n10.00% \n \n0.00% \n \n2018 \n \n2017 \n \n2016 \n \n2015 \n \n2014 \n \nEquities Fixed Income Mutual \u0026 Commingled Funds Private Equity \n \nInvestment Summary \nAsset Allocation as of June 30 (in percentages) \nEquities Fixed Income Mutual and Commingled Funds Private Equity Total \n \n2018 61.9% 28.1 8.8 1.2 \n \n2017 63.9 27.1 8.2 0.8 \n \n2016 62.3 29.5 7.6 0.6 \n \n2015 65.3 27.2 7.2 0.3 \n \n2014 67.2 25.6 7.1 0.1 \n \n2013 68.1 25.0 6.9 -- \n \n100% \n \n100 \n \n100 \n \n100 \n \n100 \n \n100 \n \nAsset Allocation as of June 30 (in millions) \nEquities Fixed Income Mutual and Commingled Funds Private Equity Total \n \n2018 $ 11,140 \n5,040 1,599 \n222 \n \n2017 11,030 4,668 1,421 \n134 \n \n2016 10,005 \n4,733 1,226 \n94 \n \n2015 10,915 \n4,543 1,204 \n52 \n \n2014 11,372 4,314 1,209 \n22 \n \n2013 10,374 \n3,811 1,057 \n-- \n \n$ 18,001 17,253 16,058 16,714 16,917 15,242 \n \n91 \n \n Investment Section \n \nSchedule of Fees and Commissions \nYear ended June 30, 2018 \n \nInvestment Advisors' Fees: \n \nU.S. Equity \n \n$ \n \nInternational Equity \n \nFixed Income \n \nInvestment Commissions: \n \nU.S. Equity \n \nInternational Equity Transaction Fees: Miscellaneous:* \n \nTotal Fees and Commissions \n \n$ \n \n*Includes capitalized fees not included in total investment expenses shown on page 87. \n \n3,224,045 4,321,890 \n-- \n1,807,655 1,308,484 \n712,090 20,805,608 \n32,179,772 \n \n92 \n \n Investment Section \n \nTwenty Largest Equity Holdings  \nAs of June 30, 2018 \n \nShares 1,148,546 \n118,951 170,351 1,870,034 677,570 934,008 1,150,413 696,080 463,180 434,200 660,090 196,890 301,969 1,285,443 2,408,710 507,789 1,262,257 1,737,194 1,227,824 309,852 \n \nCompany Apple Inc. Amazon.Com Inc. Alphabet Inc. Microsoft Corp. Facebook Inc. JPMorgan Chase \u0026 Co. Exxon Mobil Corp. Visa Inc. Berkshire Hathaway Inc. Alibaba Group Holding Ltd. Johnson \u0026 Johnson Netflix Inc. UnitedHealth Group Wells Fargo \u0026 Co. Bank of America Corp. Chevron Corp. Verizon Communications Inc. Pfizer Inc. Intel Corp. The Home Depot Inc. \nTop 20 Equities Remaining Equities \n \nTotal Equities \n \nA complete listing is available upon written request, subject to restrictions of O.C.G.A. Section 47-1-14. \n \nFair Value \n \n$ \n \n212,607,350 \n \n202,192,910 \n \n191,334,873 \n \n184,404,053 \n \n131,665,402 \n \n97,323,634 \n \n95,173,667 \n \n92,195,796 \n \n86,452,547 \n \n80,557,126 \n \n80,095,321 \n \n77,068,653 \n \n74,085,074 \n \n71,264,960 \n \n67,901,535 \n \n64,199,763 \n \n63,504,150 \n \n63,025,398 \n \n61,035,131 \n \n60,452,125 \n \n$ 2,056,539,468 9,083,734,529 \n \n$ 11,140,273,997 \n \n93 \n \n Investment Section \n \nTop 10 Fixed Income Holdings* \nAs of June 30, 2018 \n \nIssuer \nUS TREAS. NOTE US TREAS. NOTE US TREAS. NOTE US TREAS. NOTE US TREAS. NOTE US TREAS. NOTE US TREAS. NOTE GENERAL ELECTRIC CO US TREAS. NOTE US TREAS. NOTE \n \nYear of Maturity \n2024 2027 2025 2025 2023 2027 2021 2022 2024 2019 \n \nInterest Rate \n2.2500% 2.2500 2.6250 2.5000 1.5000 2.2500 2.1250 2.7000 2.3750 1.1250 \n \nTotal of 10 Largest ERS \u0026 GDCP Fixed-Income Holdings Remaining Fixed-Income Holdings \n \nTotal ERS and Defined Contribution Fixed Income Securities \n \nPar Value \n \n$ \n \n313,000,000 \n \n210,000,000 \n \n200,000,000 \n \n200,000,000 \n \n195,000,000 \n \n192,000,000 \n \n153,000,000 \n \n141,000,000 \n \n133,000,000 \n \n125,000,000 \n \nFair Value \n$ $302,852,540 199,623,900 197,718,000 196,352,000 184,419,300 182,737,920 150,633,090 136,379,430 129,835,930 124,228,750 \n1,804,780,860 $ 3,235,314,610 \n$ 5,040,095,470 \n \n*A complete listing is available upon written request, subject to restrictions of O.C.G.A. Section 47-1-14. \n \n94 \n \n Actuarial Section \nBuilding a Bridge to a More Comfortable Retirement \nSkyline Park - Columbus \n \n Actuarial Section \n \nERS \nApril 19, 2018 \nBoard of Trustees Employees' Retirement System of Georgia Two Northside 75, Suite 300 Atlanta, GA 30318 \nAttn: Mr. James Potvin, Executive Director \nMembers of the Board: \nSection 47-2-26 of the law governing the operation of the Employees' Retirement System of Georgia provides that the actuary shall make annual valuations of the contingent assets and liabilities of the Retirement System on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2017. The report indicates that annual employer contributions at the rate of 19.91% of compensation for Old Plan Members, 24.66% of compensation for New Plan Members, and 21.64% of compensation for GSEPS Members for the fiscal year ending June 30, 2020 are sufficient to support the benefits of the System. \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2017 session of the General Assembly. The valuation reflects the one-time 3% payment to certain retirees and beneficiaries effective July 2017. Since the previous valuation, the Board has amended the funding policy to change the long-term assumed rate of return assumption. Effective with the June 30, 2017 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the actual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \ninvestment expenses. Since the actual rate of return for the year ending June 30, 2017 was greater than 7.50%, the assumed rate of return used in the current valuation was decreased from 7.50% to 7.40%. \nThe System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level as a percent of payroll. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a level percent of payroll. Gains and losses are reflected in the total unfunded accrued liability which is being amortized on a level dollar basis in accordance with the funding policy adopted by the Board. \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports. \nWe have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report: \n Summary of Actuarial Assumptions  Schedule of Active Members  Schedule of Funding Progress  Schedule of Retirees Added to and Removed from \nRolls  Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \n \n(continued) 96 \n \n Actuarial Section \n \nThe System is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the System and on actuarial assumptions that are internally consistent and reasonably \n \nbased on the actual experience of the System. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \nSincerely yours, \n \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n \nCathy Turcot Principal and Managing Director \n \nBen Mobley, EA, FCA, MAAA Senior Actuary \n \n97 \n \n Actuarial Section \n \nPSERS \nApril 19, 2018 \nBoard of Trustees Georgia Public School Employees Retirement System Two Northside 75, Suite 300 Atlanta, GA 30318 \nAttn: Mr. James Potvin, Executive Director \nMembers of the Board: \nSection 47-4-60 of the law governing the operation of the Georgia Public School Employees Retirement System provides that the employer contribution shall be actuarially determined and approved by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2017. Based on a monthly benefit accrual rate of $15.00, which is effective July 1, 2017, the valuation indicates that annual employer contributions of $29,296,000 or $825.03 per active member for the fiscal year ending June 30, 2020 are sufficient to support the benefits of the System. \nSince the previous valuation, the monthly benefit rate has been increased from $14.75 to $15.00 per year of creditable service with an effective date of July 1, 2017. In addition, the results of the valuation reflect that the Board granted a 2% cost-of-living adjustment (COLA) on July 1, 2017 to certain retired members and beneficiaries rather than the 1.50% anticipated cost-of-living adjustments to retired members on July 1, 2017 and on January 1, 2018. \nSince the previous valuation, the Board has amended the funding policy to change the long-term assumed rate of return assumption. Effective with the June 30, 2017 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the actual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of investment expenses. Since the actual rate of return for the year ending June 30, 2017 was greater than 7.50%, the assumed rate of return used in the current valuation was decreased from 7.50% to 7.40%. \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2017 session of the General Assembly. \nThe System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level as a dollar per active member. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a dollar per active member. Gains and losses are reflected in the total unfunded accrued liability which is being amortized as a level dollar per active member in accordance with the funding policy adopted by the Board. \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports. \n \n(continued) 98 \n \n Actuarial Section \n \nWe have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report: \n Summary of Actuarial Assumptions  Schedule of Active Members  Schedule of Funding Progress  Schedule of Retirees Added to and Removed from \nRolls  Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \nThe System is currently being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is currently operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by \n \nthe Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the System and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \nSincerely yours, \n \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n \nCathy Turcot Principal and Managing Director \n \nBen Mobley, EA, FCA, MAAA Senior Actuary \n \n99 \n \n Actuarial Section \n \nGJRS \nApril 19, 2018 \nBoard of Trustees Georgia Judicial Retirement System Two Northside 75, Suite 300 Atlanta, GA 30318 \nAttn: Mr. James Potvin, Executive Director \nMembers of the Board: \nSection 47-23-21 of the law governing the operation of the Georgia Judicial Retirement System provides that the actuary shall make annual valuations of the contingent assets and liabilities of the Retirement System on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2017. The report indicates that annual employer contributions at the rate of 9.13% of compensation for the fiscal year ending June 30, 2020 are sufficient to support the benefits of the System. \nThe results of the valuation reflect the 2% cost-of-living adjustment (COLA) granted to certain retirees and beneficiaries effective July 1, 2017. \nSince the previous valuation, the Board has amended the funding policy to change the long-term assumed rate of return assumption. Effective with the June 30, 2017 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the actual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of investment expenses. Since the actual rate of return for the year ending June 30, 2017 was greater than 7.50%, the assumed rate of return used in the current valuation was decreased from 7.50% to 7.40%. \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2017 session of the General Assembly. \nThe System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level as a percent of payroll. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a level percent of payroll. Gains and losses are reflected in the total unfunded accrued liability which is negative and being amortized as a level percent of payroll in accordance with the funding policy adopted by the Board. \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports. \nWe have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report: \n Summary of Actuarial Assumptions  Schedule of Active Members  Schedule of Funding Progress  Schedule of Retirees Added to and Removed from \nRolls  Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \n \n(continued) 100 \n \n Actuarial Section \n \nThe System is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System. \n \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \nSincerely yours, \n \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n \nCathy Turcot Principal and Managing Director \n \nBen Mobley, EA, FCA, MAAA Senior Actuary \n \n101 \n \n Actuarial Section \n \nLRS \nApril 19, 2018 \nBoard of Trustees Legislative Retirement System of Georgia Two Northside 75, Suite 300 Atlanta, GA 30318 \nAttn: Mr. James Potvin, Executive Director \nMembers of the Board: \nSection 47-6-22 of the law governing the operation of the Georgia Legislative Retirement System provides that the actuary shall make periodic valuations of the contingent assets and liabilities of the Retirement System on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2017. The report indicates that no annual employer contributions for the fiscal year ending June 30, 2020 are required to support the benefits of the System. \nThe results of the valuation reflect that the Board did not grant the anticipated cost-of-living increases (COLAs) to retired members on July 1, 2017 and on January 1, 2018. In addition, the results of the valuation reflect the one-time payment to certain retirees and beneficiaries effective July 2017. Since the previous valuation, the Board has amended the funding policy to change the long-term assumed rate of return assumption. Effective with the June 30, 2017 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the actual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of investment expenses. Since the actual rate of return for the year ending June 30, 2017 was greater than 7.50%, the assumed rate of return used in the current valuation was decreased from 7.50% to 7.40%. \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2017 session of the General Assembly. \nThe System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level as a dollar per active member. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a level dollar per active member. Gains and losses are reflected in the total unfunded accrued liability which is negative and being amortized as a level dollar per active member in accordance with the funding policy adopted by the Board. \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports. \nWe have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report: \n Summary of Actuarial Assumptions  Schedule of Active Members  Schedule of Funding Progress  Schedule of Retirees Added to and Removed from \nRolls  Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \n \n(continued) 102 \n \n Actuarial Section \n \nThe System is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System. \n \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \nSincerely yours, \n \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n \nCathy Turcot Principal and Managing Director \n \nBen Mobley, EA, FCA, MAAA Senior Actuary \n \n103 \n \n Actuarial Section \n \nGMPF \nApril 19, 2018 \nBoard of Trustees Georgia Military Pension Fund Two Northside 75, Suite 300 Atlanta, GA 30318 \nAttn: Mr. James Potvin, Executive Director \nMembers of the Board: \nSection 47-24-22 of the law governing the operation of the Georgia Military Pension Fund provides that the actuary shall make periodic valuations of the contingent assets and liabilities of the Pension Fund on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the Fund prepared as of June 30, 2017. The report indicates that annual employer contributions of $2,611,590 or $200.32 per active member for the fiscal year ending June 30, 2020 are sufficient to support the benefits of the Fund. \nSince the previous valuation, the Board has amended the funding policy to change the long-term assumed rate of return assumption. Effective with the June 30, 2017 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the actual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of investment expenses. Since the actual rate of return for the year ending June 30, 2017 was greater than 7.50%, the assumed rate of return used in the current valuation was decreased from 7.50% to 7.40%. \nIn preparing the valuation, the actuary relied on data provided by the Fund. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the Fund enacted through the 2017 session of the General Assembly. \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \nThe Fund is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the Fund and to reasonable expectations of anticipated experience under the Fund. The assumptions and methods used for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level as a dollar per active member. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a dollar per active member. Gains and losses are reflected in the total unfunded accrued liability which is being amortized as a level dollar per active member in accordance with the funding policy adopted by the Board. \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports. \nWe have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report: \n Summary of Actuarial Assumptions  Schedule of Active Members  Schedule of Funding Progress  Schedule of Retirees Added to and Removed from \nRolls  Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \nThe Fund is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the Fund is operating on an actuarially sound basis. \n \n(continued) 104 \n \n Actuarial Section \n \nAssuming that contributions to the Fund are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the Fund may be safely anticipated. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the Fund. \n \nfactors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \nFuture actuarial results may differ significantly from the current results presented in this report due to such \nSincerely yours, \n \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n \nCathy Turcot Principal and Managing Director \n \nBen Mobley, EA, FCA, MAAA Senior Actuary \n \n105 \n \n Actuarial Section \n \nSEAD Post-Retirement (SEAD-OPEB) \nApril 19, 2018 \nBoard of Trustees Employees' Retirement System of Georgia Two Northside 75, Suite 300 Atlanta, GA 30318 \nAttn: Mr. James Potvin, Executive Director \nMembers of the Board: \nChapters 47-2 and 47-19 of the Code of Georgia which govern the operation of the Georgia Employees' Group Term Life Insurance Plan provide that the actuary shall make periodic valuations of the contingent assets and liabilities of the Insurance Plan on the basis of regular interest and the tables last adopted by the Board of Trustees. In this report, we have determined liabilities for life insurance benefits payable upon death after retirement (Post-Retirement). \nWe have determined the liabilities for life insurance benefits payable upon death after retirement. We have submitted the report giving the results of the valuation of the Plan prepared as of June 30, 2017. The report indicates, for post-retirement benefits, there is no employer annual required contribution for the fiscal year ending June 30, 2020. \nSince the previous valuation, the Board has amended the funding policy to change the long-term assumed rate of return assumption. Effective with the June 30, 2017 valuation, the assumed rate of return will be reduced by 0.10% (10 basis points) from the immediate prior actuarial valuation, as long as the actual rate of return for the fiscal year ending with the current valuation date exceeds the assumed rate of return from the immediate prior actuarial valuation. The assumed rate of return may not decrease below 7.00% net of investment expenses. Since the actual rate of return for the year ending June 30, 2017 was greater than 7.50%, the assumed rate of return used in the current valuation was decreased from 7.50% to 7.40%. Gains and losses are reflected in the unfunded accrued liability. The actuarial assumptions used are in the aggregate reasonably related to the experience under the Plan and to reasonable expectations of anticipated experience under the Plan. In our opinion, the Plan is operating on an actuarially sound basis and the \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \nsufficiency of the funds to provide the benefits called for by the Plan may be safely anticipated assuming future actuarially determined contributions (ADC) are contributed when due. \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 74 and 75. The necessary disclosure information is provided in separate supplemental reports. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the Plan. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \n \n106 \n \n(continued) \n \n Actuarial Section \n \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations \n \nfor purposes other than meeting these requirements may not be appropriate. \n \nSincerely yours, \n \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n \nCathy Turcot Principal and Managing Director \n \nBen Mobley, EA, FCA, MAAA Senior Actuary \n \n107 \n \n Actuarial Section \nSummary of Plan Provisions \nERS  Please see Notes to Financial Statements, (2)(a), pages 30-31. PSERS  Please see Notes to Financial Statements, (2)(b), page 31-32. LRS  Please see Notes to Financial Statements, (2)(c), pages 32-33. GJRS  Please see Notes to Financial Statements, (2)(d), pages 33-34. GMPF  Please see Notes to Financial Statements, (2)(e), page 34. SEAD-OPEB  Please see Notes to Financial Statements, (2)(h), pages 35-36. \nThe following Boards are responsible for establishing and maintaining the funding policies of the various defined benefit pension plans administered by the System: \n Board of Trustees of the Employees' Retirement System: ERS, LRS, and GMPF  Board of Trustees of the Public School Employees Retirement System: PSERS  Board of Trustees of the Georgia Judicial Retirement System: GJRS \nThe following Board is responsible for establishing and maintaining the funding policy of the defined benefit postemployment life insurance plan administered by the System: \n Board of Directors of the State Employees' Assurance Department: SEAD-OPEB \nERS, PSERS, LRS, GJRS, and GMPF are all subject to the provisions of GASB Statement No. 67, Financial Reporting for Pension Plans, an amendment of GASB Statement No. 25 (GASB 67). All of the plans covered under GASB 67 use the Entry Age Normal actuarial cost method for both funding and financial reporting purposes. This continues a long-standing practice for all of those plans and provides a point of consistency between the funding provisions and the GASB 67 requirements. \nSEAD-OPEB is subject to the provisions of GASB 74. SEAD-OPEB uses the Entry Age Normal actuarial cost method for both funding and financial reporting purposes. \nFor all of the plans covered under GASB 67, the GASB 67 reports prepared as of June 30, 2018 were largely based on the data, assumptions, and results of the annual funding valuations as of June 30, 2017. The Total Pension Liability (TPL) for each plan, determined using the Entry Age Normal method, was then rolled forward to the June 30, 2018 measurement date. The Net Pension Liability for each plan is equal to the rolled forward TPL less the plan's net position as of June 30, 2018. \nFor the plan covered under GASB 74, the GASB 74 report prepared as of June 30, 2018 was largely based on the data, assumptions, and results of the annual funding valuation as of June 30, 2017. The Total OPEB Liability (TOL) for the plan, determined using the Entry Age Normal method, was then rolled forward to the June 30, 2018 measurement date. The Net OPEB Liability for the plan is equal to the rolled forward TOL less the plan's net position as of June 30, 2018. \nFor the funding valuations as of June 30, 2017, the Actuarial Value of Assets is calculated using a five-year smoothing methodology, whereby excesses and shortfalls of actual investment income over or under the expected investment return will be recognized over the succeeding five-year periods. \nFor the life insurance plan's funding valuation as of June 30, 2017, the Actuarial Value of Assets is equal to the Fair Value of Assets as of June 30, 2017. \n(continued) 108 \n \n Actuarial Section \nSummary of Plan Provisions \nFor the funding valuations, each plan covered under GASB 67 utilizes a 7.40% assumed rate of return and a 7.40% discount rate for the calculation of the respective plans' liabilities. The Single Equivalent Interest Rate required under GASB 67 has been determined to be 7.30% by the plans' actuaries. The plan covered under GASB 74 utilizes a 7.40% assumed rate of return and a 7.40% discount rate for the calculation of the plan's liabilities. The Single Equivalent Interest Rate required under GASB 74 has been determined to be 7.30% by the plan's actuaries. \n109 \n \n Actuarial Section \nSummary of Actuarial Assumptions \nThe laws governing the Employees' Retirement System and the plans it administers require an actuary to perform an annual valuation of the soundness of the plans. In addition, the actuary must perform at least once every five years an actuarial investigation of the mortality, service, and compensation experience of the members and beneficiaries of the System. The latest valuation was performed as of June 30, 2017 based on actuarial assumptions approved by the Board during the last experience study on December 17, 2015. \nThe more pertinent facts and significant assumptions underlying the computations included in the June 30, 2017 reports are as follows: \n \nValuation Date Actuarial Cost Method Amortization Method \nAmortization Period \n \nERS June 30, 2017 \nEntry age \nLevel dollar, closed \n \nPSERS June 30, 2017 \nEntry age \nLevel dollar, closed \n \n16.5 years \n \n21.2 years \n \nGJRS \nJune 30, 2017 Entry age \nLevel percent of pay, closed \n16.1 years \n \nLRS June 30, 2017 \nEntry age \nLevel dollar, open Infinite \n \nGMPF June 30, 2017 \nEntry age Level dollar, closed \n16.5 years \n \nActuarial Asset Valuation Method \nInvestment Rate of Return Inflation Rate Projected Salary Increases COLA \n \nThe actuarial value of assets was based on the total fair value income of investments, with the excess or shortfall of actual investment income over or under the expected investment return smoothed over five years. One-fifth of the excess or shortfall is recognized each year for five years. \n \n7.40% 2.75% 3.25-7.00% None \n \n7.40% 2.75% \nn/a 1.50% Semi-annually \n \n7.40% 2.75% 4.50% None \n \n7.40% 2.75% \nn/a 1.50% Semi-annually \n \n7.40% 2.75% \nn/a None \n \nValuation Date Actuarial Cost Method Amortization Method \nAmortization Period \n \nSEAD-OPEB June 30, 2017 \nEntry age Level dollar, open \nInfinite \n \nActuarial Asset Valuation Method \nInvestment Rate of Return Inflation Rate Projected Salary Increases \nERS GJRS LRS COLA \n \nMarket Value of Assets \n7.40% 2.75% \n3.25-7.00% 4.50% 0.00% n/a \n \n(continued) 110 \n \n Actuarial Section \nSummary of Actuarial Assumptions \nRates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability) ERS Representative values of the assumed annual rates of separation other than retirement for non-law enforcement officers are as follows. Special rates of separation apply to law enforcement officers. \n \nAnnual Rates of Death \n \nAnnual Rates of Disability \n \nAge \n \nMen \n \nWomen Men Women \n \n20 \n \n.0320 % .0177 % .05 % \n \n.02 % \n \n25 \n \n.0349 \n \n.0192 \n \n.05 \n \n.02 \n \n30 \n \n.0412 \n \n.0245 \n \n.05 \n \n.02 \n \n35 \n \n.0717 \n \n.0441 \n \n.05 \n \n.02 \n \n40 \n \n.1001 \n \n.0655 \n \n.25 \n \n.10 \n \n45 \n \n.1399 \n \n.1043 \n \n.48 \n \n.25 \n \n50 \n \n.1983 \n \n.1555 \n \n.70 \n \n.45 \n \n55 \n \n.2810 \n \n.2228 \n \n1.05 \n \n.73 \n \n60 \n \n.4092 \n \n.3058 \n \n-- \n \n-- \n \n65 \n \n.5600 \n \n.4304 \n \n-- \n \n-- \n \nAnnual Rates of Withdrawal Years of Service \n \n0-4 \n \n5-9 \n \n10 \u0026 over \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \n20 \n \n35.00 % 30.00 % \n \n--% \n \n--% \n \n--% \n \n--% \n \n25 \n \n27.50 \n \n25.00 \n \n15.00 \n \n17.50 \n \n-- \n \n-- \n \n30 \n \n23.00 \n \n21.50 \n \n11.50 \n \n12.50 \n \n7.50 \n \n8.25 \n \n35 \n \n21.50 \n \n19.50 \n \n10.00 \n \n10.50 \n \n6.00 \n \n6.00 \n \n40 \n \n19.50 \n \n18.25 \n \n9.50 \n \n9.50 \n \n4.75 \n \n5.00 \n \n45 \n \n18.60 \n \n16.50 \n \n9.00 \n \n8.00 \n \n4.00 \n \n4.00 \n \n50 \n \n16.60 \n \n15.00 \n \n7.25 \n \n7.25 \n \n4.25 \n \n4.25 \n \n55 \n \n14.50 \n \n14.00 \n \n7.00 \n \n7.00 \n \n4.75 \n \n4.50 \n \n60 \n \n14.00 \n \n14.50 \n \n6.00 \n \n6.25 \n \n-- \n \n-- \n \n65 \n \n15.00 \n \n17.00 \n \n10.00 \n \n11.00 \n \n-- \n \n-- \n \n(continued) 111 \n \n Actuarial Section \nSummary of Actuarial Assumptions Rates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability) \nPSERS \n \nAnnual Rates of Death \n \nAnnual Rates of Disability \n \nAge \n \nMen \n \nWomen \n \nBoth \n \n20 \n \n.0320 % .0177 % \n \n--% \n \n25 \n \n.0349 \n \n.0192 \n \n-- \n \n30 \n \n.0412 \n \n.0245 \n \n-- \n \n35 \n \n.0717 \n \n.0441 \n \n.0025 \n \n40 \n \n.1001 \n \n.0655 \n \n.0110 \n \n45 \n \n.1399 \n \n.1043 \n \n.0370 \n \n50 \n \n.1983 \n \n.1555 \n \n.0865 \n \n55 \n \n.2810 \n \n.2228 \n \n.2250 \n \n60 \n \n.4092 \n \n.3058 \n \n.3500 \n \n65 \n \n.5600 \n \n.4304 \n \n-- \n \nAnnual Rates of Withdrawal Years of Service \n \n0-4 \n \n5-9 \n \n10 \u0026 over \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \n20 \n \n37.00 % 32.00 % \n \n--% \n \n--% \n \n--% \n \n--% \n \n25 \n \n28.00 \n \n28.00 \n \n17.00 \n \n18.00 \n \n-- \n \n-- \n \n30 \n \n25.00 \n \n23.00 \n \n15.00 \n \n15.00 \n \n12.00 \n \n10.00 \n \n35 \n \n23.00 \n \n19.00 \n \n13.00 \n \n13.00 \n \n9.00 \n \n10.00 \n \n40 \n \n21.00 \n \n17.00 \n \n12.00 \n \n12.00 \n \n7.50 \n \n8.00 \n \n45 \n \n19.00 \n \n15.50 \n \n11.00 \n \n10.00 \n \n6.50 \n \n7.00 \n \n50 \n \n17.00 \n \n14.00 \n \n9.00 \n \n8.50 \n \n6.50 \n \n6.00 \n \n55 \n \n15.00 \n \n12.00 \n \n9.00 \n \n8.00 \n \n6.00 \n \n5.50 \n \n60 \n \n12.00 \n \n11.00 \n \n7.50 \n \n7.50 \n \n-- \n \n-- \n \n(continued) 112 \n \n Actuarial Section \n \nSummary of Actuarial Assumptions \n \nRates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability) GJRS \n \nWithdrawal \n \nAnnual Rates of Death \n \nDisability \n \nAge \n \nBoth \n \nMen \n \nWomen \n \nBoth \n \n20 \n \n4.0 % \n \n.032 % \n \n.018 % \n \n.03 % \n \n25 \n \n4.0 \n \n.035 \n \n.019 \n \n.03 \n \n30 \n \n4.0 \n \n.041 \n \n.025 \n \n.05 \n \n35 \n \n4.0 \n \n.072 \n \n.044 \n \n.08 \n \n40 \n \n6.0 \n \n.100 \n \n.066 \n \n.10 \n \n45 \n \n4.0 \n \n.140 \n \n.104 \n \n.18 \n \n50 \n \n3.0 \n \n.198 \n \n.156 \n \n.25 \n \n55 \n \n2.5 \n \n.281 \n \n.223 \n \n.45 \n \n60 \n \n2.5 \n \n.409 \n \n.306 \n \n.73 \n \n65 \n \n2.5 \n \n.560 \n \n.430 \n \n1.18 \n \nLRS \n \nAnnual Rates of \n \nWithdrawal \n \nDeath \n \nAge \n \nBoth \n \nMen \n \nWomen \n \n20 \n \n8.0 % \n \n.032 % \n \n.018 % \n \n25 \n \n8.0 \n \n.035 \n \n.019 \n \n30 \n \n8.0 \n \n.041 \n \n.025 \n \n35 \n \n8.0 \n \n.072 \n \n.044 \n \n40 \n \n8.0 \n \n.100 \n \n.066 \n \n45 \n \n8.5 \n \n.140 \n \n.104 \n \n50 \n \n8.5 \n \n.198 \n \n.156 \n \n55 \n \n9.0 \n \n.281 \n \n.223 \n \n60 \n \n9.0 \n \n.409 \n \n.306 \n \n65 \n \n9.0 \n \n.560 \n \n.430 \n \nGMPF \n \nRates of Withdrawal from Active Service \n \nService \n \nRates \n \n2 or less 3-7 8-9 10-14 15-19 20 or more \n \n13.0 % 17.5 14.0 13.5 \n8.5 14.5 \n \nAge \n \nRates of Death \n \nMen \n \nWomen \n \n25 \n \n.0349% \n \n.0192% \n \n30 \n \n.0412 \n \n.0245 \n \n35 \n \n.0717 \n \n.0441 \n \n40 \n \n.1001 \n \n.0655 \n \n45 \n \n.1339 \n \n.1043 \n \n50 \n \n.1983 \n \n.1555 \n \n55 \n \n.2810 \n \n.2228 \n \n60 \n \n.4092 \n \n.3058 \n \n(continued) 113 \n \n Actuarial Section \nSummary of Actuarial Assumptions Rates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability) \nSEAD-OPEB \n \nAll Groups \n \nERS \n \nGJRS \n \nAnnual Rates of Death \n \nAnnual Rates of Disability \n \nAnnual Rates of Disability \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nBoth \n \n20 \n \n.0320 % .0177 % \n \n.05 % \n \n.02 % \n \n.03 % \n \n25 \n \n.0349 \n \n.0192 \n \n.05 \n \n.02 \n \n.03 \n \n30 \n \n.0412 \n \n.0245 \n \n.05 \n \n.02 \n \n.05 \n \n35 \n \n.0717 \n \n.0441 \n \n.05 \n \n.02 \n \n.08 \n \n40 \n \n.1001 \n \n.0655 \n \n.25 \n \n.10 \n \n.10 \n \n45 \n \n.1399 \n \n.1043 \n \n.48 \n \n.25 \n \n.18 \n \n50 \n \n.1983 \n \n.1555 \n \n.70 \n \n.45 \n \n.25 \n \n55 \n \n.2810 \n \n.2228 \n \n1.05 \n \n.73 \n \n.45 \n \n60 \n \n.4092 \n \n.3058 \n \n-- \n \n-- \n \n.73 \n \n65 \n \n.5600 \n \n.4304 \n \n-- \n \n-- \n \n1.18 \n \nERS \n \nLRS \n \nGJRS \n \nAnnual Rates of Withdrawal Years of Service \n \nAnnual Rates Annual Rates of Withdrawal of Withdrawal \n \n0-4 \n \n5-9 \n \n10 \u0026 over \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \n20 \n \n35.00 % 30.00 % \n \n--% \n \n--% \n \n--% \n \n--% \n \n25 \n \n27.50 \n \n25.00 \n \n15.00 \n \n17.50 \n \n-- \n \n-- \n \n30 \n \n23.00 \n \n21.50 \n \n11.50 \n \n12.50 \n \n7.50 \n \n8.25 \n \n35 \n \n21.50 \n \n19.50 \n \n10.00 \n \n10.50 \n \n6.00 \n \n6.00 \n \n40 \n \n19.50 \n \n18.25 \n \n9.50 \n \n9.50 \n \n4.75 \n \n5.00 \n \n45 \n \n18.60 \n \n16.50 \n \n9.00 \n \n8.00 \n \n4.00 \n \n4.00 \n \n50 \n \n16.60 \n \n15.00 \n \n7.25 \n \n7.25 \n \n4.25 \n \n4.25 \n \n55 \n \n14.50 \n \n14.00 \n \n7.00 \n \n7.00 \n \n4.75 \n \n4.50 \n \n60 \n \n14.00 \n \n14.50 \n \n6.00 \n \n6.25 \n \n-- \n \n-- \n \n65 \n \n15.00 \n \n17.00 \n \n10.00 \n \n11.00 \n \n-- \n \n-- \n \nBoth \n8.00 % 8.00 8.00 8.00 8.00 8.50 8.50 9.00 9.00 9.00 \n \nBoth \n4.00 % 4.00 4.00 4.00 6.00 4.00 3.00 2.50 2.50 2.50 \n \n(continued) 114 \n \n Summary of Actuarial Assumptions Annual Rates of Retirement \nERS \n \nActuarial Section \n \nEarly Retirement \n \nOld Plan Age 60 or 30 years \n \n34 years \n \nMore than 34 years \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \n50 \n \n2.0 % \n \n2.0 % \n \n7.5 % \n \n6.0 % 100.0 % \n \n100.0 % \n \n90.0 % \n \n100.0 % \n \n52 \n \n2.0 \n \n2.0 \n \n7.5 \n \n6.0 \n \n100.0 \n \n100.0 \n \n90.0 \n \n100.0 \n \n55 \n \n3.0 \n \n3.5 \n \n7.5 \n \n10.0 \n \n100.0 \n \n100.0 \n \n75.0 \n \n90.0 \n \n57 \n \n3.5 \n \n5.0 \n \n10.5 \n \n10.0 \n \n100.0 \n \n100.0 \n \n70.0 \n \n70.0 \n \n60 \n \n-- \n \n-- \n \n15.0 \n \n20.0 \n \n97.5 \n \n95.0 \n \n40.0 \n \n55.0 \n \n62 \n \n-- \n \n-- \n \n32.0 \n \n40.0 \n \n97.5 \n \n95.0 \n \n40.0 \n \n65.0 \n \n65 \n \n-- \n \n-- \n \n35.0 \n \n40.0 \n \n35.0 \n \n40.0 \n \n35.0 \n \n40.0 \n \n67 \n \n-- \n \n-- \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n70 \n \n-- \n \n-- \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n75 \n \n-- \n \n-- \n \n100.0 \n \n100.0 \n \n100.0 \n \n100.0 \n \n100.0 \n \n100.0 \n \nNew Plan and GSEPS \n \nEarly Retirement \n \nNormal Retirement \n \nAge \n \nMen \n \n50 \n \n7.0 % \n \n52 \n \n7.0 \n \n55 \n \n7.0 \n \n57 \n \n8.0 \n \n60 \n \n-- \n \n62 \n \n-- \n \n65 \n \n-- \n \n67 \n \n-- \n \n70 \n \n-- \n \n75 \n \n-- \n \nWomen \n4.5 % 4.5 6.5 8.0 -- -- -- -- -- -- \n \nMen* \n70.0 % 70.0 60.0 50.0 25.0 40.0 32.0 32.0 30.0 100.0 \n \nWomen** \n50.0 % 45.0 50.0 40.0 30.0 40.0 35.0 32.0 30.0 100.0 \n \n*An additional 10% of active male New Plan and GSEPS members less than age 55 and 20% between ages 55-59, inclusive, are expected to retire in the year in which they attain 30 years of service. \n**An additional 20% of active female New Plan and GSEPS members less than age 60 are expected to retire in the year in which they attain 30 years of service. \n \n(continued) 115 \n \n Actuarial Section \n \nSummary of Actuarial Assumptions \n \nAnnual Rates of Retirement PSERS \n \nAge \n \nAnnual Rate of Retirement \n \nAge \n \nAnnual Rate of Retirement \n \n60 \n \n13.0 % \n \n68 \n \n23.0 % \n \n61 \n \n13.0 \n \n69 \n \n26.0 \n \n62 \n \n22.0 \n \n70 \n \n27.0 \n \n63 \n \n17.5 \n \n71 \n \n27.0 \n \n64 \n \n17.0 \n \n72 \n \n27.0 \n \n65 \n \n28.0 \n \n73 \n \n27.0 \n \n66 \n \n27.0 \n \n74 \n \n27.0 \n \n67 \n \n23.0 \n \n75 \u0026 over \n \n100.0 \n \nGJRS \n \nAge \n60 61 62 63-64 65-69 70-74 75 \n \nAnnual Rate of Retirement \n15.0 % 10.0 12.0 10.0 15.0 25.0 100.0 \n \nLRS \n \nAge \n60 61 62 63 64 65 \n \nAnnual Rate of Retirment \n10.0 % 10.0 15.0 10.0 10.0 12.0 \n \nAge \n66 67 68 69 70-74 75 \n \nAnnual Rate of Retirement \n12.0 % 15.0 12.0 12.0 20.0 100.0 \n \nGMPF \n \nAge \n60 61 62 63 64 65 \u0026 over \n \nAnnual Rate of Retirement \n75.0 % 60.0 70.0 60.0 60.0 100.0 \n \n(continued) 116 \n \n Summary of Actuarial Assumptions \n \nActuarial Section \n \nAnnual Rates of Retirement \nSEAD-OPEB ERS Members \n \nEarly Retirement \n \nOld Plan Age 60 or 30 years \n \n34 years \n \nMore than 34 years \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \n50 \n \n2.0 % \n \n2.0 % \n \n7.5 % \n \n6.0 % 100.0 % \n \n100.0 % \n \n90.0 % \n \n100.0 % \n \n52 \n \n2.0 \n \n2.0 \n \n7.5 \n \n6.0 \n \n100.0 \n \n100.0 \n \n90.0 \n \n100.0 \n \n55 \n \n3.0 \n \n3.5 \n \n7.5 \n \n10.0 \n \n100.0 \n \n100.0 \n \n75.0 \n \n90.0 \n \n57 \n \n3.5 \n \n5.0 \n \n10.5 \n \n10.0 \n \n100.0 \n \n100.0 \n \n70.0 \n \n70.0 \n \n60 \n \n-- \n \n-- \n \n15.0 \n \n20.0 \n \n97.5 \n \n95.0 \n \n40.0 \n \n55.0 \n \n62 \n \n-- \n \n-- \n \n32.0 \n \n40.0 \n \n97.5 \n \n95.0 \n \n40.0 \n \n65.0 \n \n65 \n \n-- \n \n-- \n \n35.0 \n \n40.0 \n \n35.0 \n \n40.0 \n \n35.0 \n \n40.0 \n \n67 \n \n-- \n \n-- \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n70 \n \n-- \n \n-- \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n35.0 \n \n75 \n \n-- \n \n-- \n \n100.0 \n \n100.0 \n \n100.0 \n \n100.0 \n \n100.0 \n \n100.0 \n \nNew Plan and GSEPS \n \nEarly Retirement \n \nNormal Retirement \n \nAge \n \nMen \n \nWomen \n \nMen* \n \nWomen** \n \n50 \n \n7.0 % \n \n4.5 % \n \n70.0 % \n \n50.0 % \n \n52 \n \n7.0 \n \n4.5 \n \n70.0 \n \n45.0 \n \n55 \n \n7.0 \n \n6.5 \n \n60.0 \n \n50.0 \n \n57 \n \n8.0 \n \n8.0 \n \n50.0 \n \n40.0 \n \n60 \n \n-- \n \n-- \n \n25.0 \n \n30.0 \n \n62 \n \n-- \n \n-- \n \n40.0 \n \n40.0 \n \n65 \n \n-- \n \n-- \n \n32.0 \n \n35.0 \n \n67 \n \n-- \n \n-- \n \n32.0 \n \n32.0 \n \n70 \n \n-- \n \n-- \n \n30.0 \n \n30.0 \n \n75 \n \n-- \n \n-- \n \n100.0 \n \n100.0 \n \n*An additional 10% of active male New Plan and GSEPS members less than age 55 and 20% between ages 55-59, inclusive, are expected to retire in the year in which they attain 30 years of service. \n**An additional 20% of active female New Plan and GSEPS members less than age 60 are expected to retire in the year in which they attain 30 years of service. \nLRS Members \n \nAge \n60 61 62 63-64 65-66 \n \nAnnual Rate of Retirement \n10.0 % 10.0 15.0 10.0 12.0 \n \nAge \n67 68-69 70-74 \n75 \n \nAnnual Rate of Retirement \n15.0 % 12.0 20.0 100.0 \n \n(continued) 117 \n \n Summary of Actuarial Assumptions \nAnnual Rates of Retirement SEAD-OPEB GJRS Members \n \nAge \n60 61 62 63-64 65-66 67 68-69 70-74 75 \n \nAnnual Rates of Retirement \n15.0 % 10.0 12.0 10.0 15.0 15.0 15.0 25.0 100.0 \n \nActuarial Section \n \n118 \n \n Actuarial Section \nSummary of Actuarial Assumptions \nAnnual Rates of Death After Retirement \nFor all plans except PSERS, the RP-2000 Combined Mortality Table (projected to 2025 with projection scale BB and set forward two years for both males and females) is used for the period after retirement and for dependent beneficiaries. The RP-2000 Disabled Mortality Table (projected to 2025 with projection scale BB and and set back seven years for males and set forward three years for females) is used for the period after disability retirement. For PSERS, the RP-2000 Blue-Collar Mortality Table (projected to 2025 with projection scale BB and set forward three years for males and two years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table (projected to 2025 with projection scale BB and set forward five years for both males and females) is used for the period after disability retirement. For all plans, there is a margin for future mortality improvement in the tables. \nERS \n \nAge \n \nMen \n \n40 \n \n0.1127 % \n \n45 \n \n0.1609 \n \n50 \n \n0.2474 \n \n55 \n \n0.4246 \n \n60 \n \n0.6985 \n \nWomen \n0.0790 % 0.1230 0.1872 0.2918 0.4923 \n \nAge \n \nMen \n \nWomen \n \n65 \n \n1.1300 % 0.8994 % \n \n70 \n \n1.8697 \n \n1.5281 \n \n75 \n \n3.2147 \n \n2.5220 \n \n80 \n \n5.5160 \n \n4.1628 \n \n85 \n \n9.5631 \n \n7.1239 \n \nPSERS \n \nAge \n \nMen \n \n40 \n \n0.1476 % \n \n45 \n \n0.1974 \n \n50 \n \n0.3057 \n \n55 \n \n0.5644 \n \n60 \n \n0.9575 \n \nWomen \n0.0995 % 0.1484 0.2084 0.2844 0.5014 \n \nAge \n \nMen \n \nWomen \n \n65 \n \n1.4859 % 0.9774 % \n \n70 \n \n2.4262 \n \n1.7054 \n \n75 \n \n3.9830 \n \n2.7288 \n \n80 \n \n6.5238 \n \n4.4542 \n \n85 \n \n10.9551 \n \n7.5727 \n \nGJRS \n \nAge \n \nMen \n \n40 \n \n0.1127 % \n \n45 \n \n0.1609 \n \n50 \n \n0.2474 \n \n55 \n \n0.4246 \n \n60 \n \n0.6985 \n \nWomen \n0.0790 % 0.1230 0.1872 0.2918 0.4923 \n \nAge \n \nMen \n \nWomen \n \n65 \n \n1.1300 % 0.8994 % \n \n70 \n \n1.8697 \n \n1.5281 \n \n75 \n \n3.2147 \n \n2.5220 \n \n80 \n \n5.5160 \n \n4.1628 \n \n85 \n \n9.5631 \n \n7.1239 \n \n(continued) 119 \n \n Summary of Actuarial Assumptions \n \nAnnual Rates of Death After Retirement LRS \n \nAge \n \nMen \n \nWomen \n \n40 \n \n0.1127 % \n \n0.0790 % \n \n45 \n \n0.1609 \n \n0.1230 \n \n50 \n \n0.2474 \n \n0.1872 \n \n55 \n \n0.4246 \n \n0.2918 \n \n60 \n \n0.6985 \n \n0.4923 \n \nActuarial Section \n \nAge \n \nMen \n \nWomen \n \n65 \n \n1.1300 % 0.8994 % \n \n70 \n \n1.8697 \n \n1.5281 \n \n75 \n \n3.2147 \n \n2.5220 \n \n80 \n \n5.5160 \n \n4.1628 \n \n85 \n \n9.5631 \n \n7.1239 \n \nGMPF \n \nAge \n \nMen \n \nWomen \n \n40 \n \n0.1127 % \n \n0.0790 % \n \n45 \n \n0.1609 \n \n0.1230 \n \n50 \n \n0.2474 \n \n0.1872 \n \n55 \n \n0.4246 \n \n0.2918 \n \n60 \n \n0.6985 \n \n0.4923 \n \nAge \n \nMen \n \nWomen \n \n65 \n \n1.1300 % 0.8994 % \n \n70 \n \n1.8697 \n \n1.5281 \n \n75 \n \n3.2147 \n \n2.5220 \n \n80 \n \n5.5160 \n \n4.1628 \n \n85 \n \n9.5631 \n \n7.1239 \n \nSEAD-OPEB \n \nAge \n \nMen \n \nWomen \n \n40 \n \n0.1127 % \n \n0.0790 % \n \n45 \n \n0.1609 \n \n0.1230 \n \n50 \n \n0.2474 \n \n0.1872 \n \n55 \n \n0.4246 \n \n0.2918 \n \n60 \n \n0.6985 \n \n0.4923 \n \nAge \n \nMen \n \nWomen \n \n65 \n \n1.1300 % 0.8994 % \n \n70 \n \n1.8697 \n \n1.5281 \n \n75 \n \n3.2147 \n \n2.5220 \n \n80 \n \n5.5160 \n \n4.1628 \n \n85 \n \n9.5631 \n \n7.1239 \n \n120 \n \n Active Members \nERS \n \nActuarial Section \n \nYear 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nActive Members 75,293 71,272 68,566 66,081 63,942 61,550 60,486 60,416 59,766 60,906 \n \nAnnual Payroll (in thousands) $ 2,809,199 \n2,674,155 2,571,042 2,486,780 2,414,884 2,335,773 2,315,625 2,352,920 2,384,358 2,546,492 \n \nAverage Pay $ 37,310 \n37,520 37,497 37,632 37,767 37,949 38,284 38,945 39,895 41,810 \n \nChange 3.0 % 0.6 (0.1) 0.4 0.4 0.5 0.9 1.7 2.4 4.8 \n \nPSERS PSERS is not a compensation based plan. \n \nYear \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nActive Members \n40,121 40,581 39,962 39,249 38,654 37,361 36,096 35,477 34,866 35,509 \n \nGJRS \n \nYear 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nActive Members 482 502 495 507 503 506 513 516 526 527 \n \nAnnual Payroll (in thousands) $ 51,102 \n52,083 51,293 52,331 51,898 52,807 53,628 54,272 57,401 59,695 \n \nAverage Pay $ 106,021 \n103,751 103,622 103,216 103,177 104,362 104,539 105,178 109,128 113,273 \n \nChange 4.7 % (2.1) (0.1) (0.4) (0.0) 1.1 0.2 0.6 3.8 3.8 \n \n(continued) 121 \n \n Active Members \nLRS LRS is not a compensation based plan. \nGMPF GMPF is not a compensation based plan. \nSEAD-OPEB \n \nYear \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nActive Members \n218 218 216 218 220 223 222 218 224 222 \n \nYear \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nActive Members \n11,623 12,019 13,032 13,776 13,526 13,573 13,469 13,754 13,850 13,037 \n \nYear \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nActive Members \n75,859 69,745 62,305 55,516 49,261 43,512 39,101 35,189 32,076 29,024 \n \nActuarial Section \n \nNote: Payroll data on page 121 for fiscal year 2017 will not equal that which is presented in the Financial section in the Schedules of Employers' and Nonemployers' Contributions on pages 68-69. Valuation data at that time was a snapshot of the valuation date, annualized for new hires, but does not include those who terminated during the year. \n \n122 \n \n Actuarial Section \n \nMember and Employer Contribution Rates \n \nERS \n \nYear \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nMember \n1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% \n \nEmployer Rates \n \nOld Plan* \n \nNew Plan \n \n10.41% 10.41% 10.41% 11.63% 14.90% 18.46% 21.96% 24.72% 24.69% 24.69% \n \n10.41% 10.41% 10.41% 11.63% 14.90% 18.46% 21.96% 24.72% 24.69% 24.69% \n \nGSEPS \n6.54% 6.54% 6.54% 7.42% 11.54% 15.18% 18.87% 21.69% 21.69% 21.66% \n \n* Old Plan rate includes an employer pick-up of employee contributions. \n \nPSERS \n \nYear \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nPre 7/1/12 Member \n$ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year \n \nPost 7/1/12 Member \n$ 90 per year $ 90 per year $ 90 per year $ 90 per year $ 90 per year \n \nEmployer \n \n$ \n \n5,680,000 \n \n5,529,000 \n \n7,509,000 \n \n15,884,000 \n \n24,829,000 \n \n27,160,000 \n \n28,461,000 \n \n28,580,000 \n \n26,277,000 \n \n29,276,000 \n \nGJRS \n \nYear \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nMember \n7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% \n \nEmployer \n3.85% 3.85% 3.85% 3.90% 3.90% 4.23% 6.98% 12.19%I) 10.48%I) 7.17%I) \n \n(continued) 123 \n \n Member and Employer Contribution Rates \nLRS \n \nYear \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nMember \n8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% \n \nEmployer \n \n$ \n \n71,000 \n \n75,000 \n \n75,000 \n \n75,000 \n \n128,000 \n \n45,000 \n \n0 \n \n0 \n \n0 \n \n0 \n \nActuarial Section \n \nGMPF SEAD-OPEB \n \nYear \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nMember \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n \nEmployer \n$ 1,323,000 1,434,000 1,282,000 1,521,000 1,703,000 1,892,000 1,893,369 1,989,530 2,017,875 2,377,312 \n \nYear \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nMember - Old Plan \n0.45% 0.45% 0.45% 0.45% 0.45% 0.45% 0.45% 0.45% 0.45% 0.45% \n \nMember - New Plan, LRS, GJRS \n0.23% 0.23% 0.23% 0.23% 0.23% 0.23% 0.23% 0.23% 0.23% 0.23% \n \nEmployer \n0% 0% 0% 0.61% 0.27% 0% 0% 0% 0% 0% \n \n(continued) 124 \n \n (continued) 125 \n \nEmployees' Retirement System \nPublic School Employees Retirement System Legislative Retirement System \nGeorgia Judicial Retirement System \n \nActuarial Valuation \nDate \n6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 \n6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 \n6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 \n6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 \n \nActuarial Value of Plan Assets \n(a) \n$ 14,017,346 13,613,606 13,046,193 12,667,557 12,260,595 12,129,804 12,376,120 12,675,649 12,854,518 13,088,185 \n791,855 769,618 737,406 719,601 710,915 727,268 765,450 805,277 834,554 865,786 \n30,706 30,303 29,581 29,278 28,990 29,481 30,538 31,635 32,171 32,913 \n313,315 317,624 320,050 327,483 335,225 351,889 373,560 396,399 418,412 439,828 \n \nActuarial Accrued Liablility (AAL) Entry-Age (b) \n15,680,857 15,878,022 16,295,352 16,656,905 16,777,922 16,982,449 16,991,963 17,099,527 17,199,688 17,514,898 \n770,950 823,232 875,396 885,927 895,324 910,256 924,365 967,409 988,883 1,035,935 \n24,454 23,523 25,003 25,245 24,966 24,904 24,913 25,690 25,533 25,674 \n268,516 282,474 281,496 290,486 308,862 335,792 343,428 350,298 376,740 407,607 \n \nUnfunded AAL/ (Funded Excess) \n(b-a) \n1,663,511 2,264,416 3,249,159 3,989,348 4,517,327 4,852,645 4,615,843 4,423,878 4,345,170 4,426,713 \n(20,905) 53,614 \n137,990 166,326 184,409 182,988 158,915 162,132 154,329 170,149 \n(6,252) (6,780) (4,578) (4,033) (4,024) (4,577) (5,624) (5,945) (6,638) (7,239) \n(44,799) (35,150) (38,554) (36,997) (26,363) (16,097) (30,132) (46,101) (41,672) (32,221) \n \nFunded Ratio (a/b) \n89.4 % 85.7 80.1 76.0 73.1 71.4 72.8 74.1 74.7 74.7 \n102.7 93.5 84.2 81.2 79.4 79.9 82.8 83.2 84.4 83.6 \n125.6 128.8 118.3 116.0 116.1 118.4 122.6 123.1 126.0 128.2 \n116.7 112.4 113.7 112.7 108.5 104.8 108.8 113.2 111.1 107.9 \n \nAnnual Covered Payroll \n(c) \n$ 2,809,199 2,674,155 2,571,042 2,486,780 2,414,884 2,335,773 2,315,625 2,352,920 2,384,358 2,546,492 \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n3,778 3,780 3,745 3,780 3,815 3,867 3,850 3,764 3,875 3,830 \n51,102 52,083 51,293 52,331 51,898 52,807 53,628 54,272 57,401 59,695 \n \nUnfunded AAL/ (Funded Excess) as Percentage of Covered Payroll \n[(b-a)/c] \n59.2 % 84.7 126.4 160.4 187.1 207.8 199.3 188.0 182.2 173.8 \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n(165.5) (179.4) (122.2) (106.7) (105.5) (118.4) (146.1) (157.9) (171.3) (189.0) \n(87.7) (67.5) (75.2) (70.7) (50.8) (30.5) (56.2) (84.9) (72.6) (54.0) \n \nSchedules of Funding Progress - Defined Benefit Plans \n(Dollar amounts in thousands) \n \nActuarial Section \n \n Schedules of Funding Progress - Defined Benefit Plans \n(Dollar amounts in thousands) \n \nGeorgia Military Pension Fund  \n \nActuarial Valuation \nDate \n6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 \n \nActuarial Value of Plan Assets \n(a) \n \n$ \n \n5,269 \n \n6,413 \n \n7,558 \n \n8,702 \n \n10,087 \n \n12,131 \n \n14,264 \n \n16,446 \n \n18,414 \n \n20,604 \n \nActuarial Accrued Liability (AAL) Entry-Age \n(b) \n19,124 21,021 23,773 26,767 28,231 30,056 31,815 35,213 38,211 40,731 \n \nUnfunded AAL/ (Funded Excess) \n(b-a) \n13,855 14,608 16,215 18,065 18,144 17,925 17,551 18,767 19,797 20,127 \n \nFunded Ratio (a/b) \n27.6 % 30.5 31.8 32.5 35.7 40.4 44.8 46.7 48.2 50.6 \n \nAnnual Covered Payroll \n(c) \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n \nUnfunded AAL/ (Funded Excess) as Percentage of Covered Payroll \n[(b-a)/c] \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n \n126 \n \nThis data, except for annual covered payroll, was provided by the System's actuary. \n No statistics regarding covered payroll are available. Contributions are not based on members' salaries, but are simply $4.00 per month, per member for nine months each fiscal year if hired prior to July 1, 2012 and $10 per month, per member for nine months if hired after July 1, 2012.  No statistics regarding covered payroll are available. Active and inactive plan member information is maintained by the Georgia Department of Defense. \nNote: Payroll data on pages 125-126 for fiscal year 2017 will not equal that which is presented in the Financial section in the Schedules of Employers' and Nonemployers' Contributions on pages 68-69. Valuation data at that time was a snapshot of the valuation date, annualized for new hires, but does not include those who terminated during the year. \n \nActuarial Section \n \n Schedule of Retirees Added to and Removed from Rolls \nERS \n \nActuarial Section \n \nAdded to Rolls \n \nRemoved from Rolls \n \nRoll End of Year \n \nYear Ended \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nNumber \n2,422 2,444 2,665 2,797 2,956 3,664 2,440 2,656 2,572 2,630 \n \nAnnual Allowances (in thousands) Number \n \n$ 82,644 85,329 70,383 69,031 71,464 88,855 51,178 54,003 51,031 45,833 \n \n1,017 1,055 1,051 1,170 1,305 1,176 1,059 1,350 1,342 1,420 \n \nAnnual Allowances (in thousands) \n$ 21,299 20,194 22,413 25,347 27,696 26,334 22,997 30,927 30,724 32,372 \n \nNumber \n35,579 36,968 38,582 40,209 41,860 44,348 45,729 47,035 48,265 49,475 \n \nAnnual Allowances (in thousands) \n$ 997,623 1,062,758 1,110,728 1,154,412 1,198,180 1,260,701 1,288,882 1,311,958 1,332,265 1,345,726 \n \n% Increase Average \n \nin Annual \n \nAnnual \n \nAllowance Allowances \n \n6.6 % 6.5 4.5 3.9 3.8 5.2 2.2 1.8 1.5 1.0 \n \n$ 28,040 28,748 28,789 28,710 28,624 28,427 28,185 27,893 27,603 27,200 \n \nPSERS \n \nAdded to Rolls \n \nRemoved from Rolls \n \nRoll End of Year \n \nYear Ended \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nNumber \n899 886 1,001 1,174 1,133 1,298 1,345 1,247 1,363 1,253 \n \nAnnual Allowances (in thousands) Number \n \n$ 4,514 \n \n605 \n \n5,290 \n \n575 \n \n4,494 \n \n642 \n \n3,168 \n \n731 \n \n3,192 \n \n684 \n \n3,803 \n \n650 \n \n3,749 \n \n647 \n \n3,482 \n \n690 \n \n3,927 \n \n763 \n \n4,322 \n \n756 \n \nAnnual Allowances (in thousands) \n$ 2,371 2,260 2,666 3,072 2,834 2,738 2,604 2,679 2,890 2,927 \n \nNumber \n13,487 13,798 14,157 14,600 15,049 15,697 16,395 16,952 17,552 18,049 \n \nAnnual Allowances (in thousands) \n$ 48,805 51,835 53,663 53,759 54,117 55,182 56,327 57,130 58,167 59,562 \n \n% Increase in Annual Allowance \n4.6 % 6.2 3.5 0.2 0.7 2.0 2.1 1.4 1.8 2.4 \n \nAverage Annual Allowances \n$ 3,619 3,757 3,791 3,682 3,596 3,515 3,436 3,370 3,314 3,300 \n \nGJRS \n \nAdded to Rolls \n \nRemoved from Rolls \n \nRoll End of Year \n \nYear Ended \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nNumber \n14 29 16 15 22 42 23 21 13 62 \n \nAnnual Allowances (in thousands) Number \n \n$ 902 \n \n7 \n \n2,238 \n \n6 \n \n933 \n \n10 \n \n1,168 \n \n2 \n \n1,732 \n \n8 \n \n2,763 \n \n13 \n \n1,175 \n \n9 \n \n1,416 \n \n11 \n \n919 \n \n5 \n \n5,304 \n \n10 \n \nAnnual Allowances (in thousands) \n \n$ \n \n410 \n \n191 \n \n508 \n \n105 \n \n405 \n \n629 \n \n326 \n \n561 \n \n269 \n \n771 \n \nNumber \n178 201 207 220 234 263 277 287 295 347 \n \nAnnual Allowances (in thousands) \n$ 9,965 12,012 12,437 13,500 14,827 16,961 17,810 18,665 19,315 23,848 \n \n% Increase in Annual Allowance \n5.2 % 20.5 \n3.5 8.5 9.8 14.4 5.0 4.8 3.5 23.5 \n \nAverage Annual Allowances \n$ 55,983 59,761 60,082 61,364 63,363 64,490 64,296 65,035 65,475 68,726 \n \n(continued) 127 \n \n Schedule of Retirees Added to and Removed from Rolls \nLRS \n \nActuarial Section \n \nAdded to Rolls \n \nRemoved from Rolls \n \nRoll End of Year \n \nYear Ended \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nNumber \n13 10 10 18 10 32 \n6 13 \n9 13 \n \nAnnual Allowances (in thousands) \n$ 130 117 106 104 66 200 30 87 58 80 \n \nNumber \n11 7 3 10 11 15 7 12 13 6 \n \nAnnual Allowances (in thousands) \n$ 100 54 36 86 82 \n140 61 112 111 74 \n \nNumber \n226 229 236 244 243 260 259 260 256 263 \n \nAnnual Allowances (in thousands) \n$ 1,639 1,702 1,772 1,790 1,774 1,834 1,803 1,778 1,725 1,731 \n \n% Increase in Annual Allowance \n1.9 % 3.8 4.1 1.0 (0.9) 3.4 (1.7) (1.4) (3.0) 0.3 \n \nAverage Annual Allowances \n$ 7,252 7,432 7,508 7,336 7,300 7,054 6,961 6,838 6,738 6,582 \n \nGMPF \n \nAdded to Rolls \n \nRemoved from Rolls \n \nRoll End of Year \n \nYear Ended \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nNumber \n71 85 92 94 95 83 62 54 79 83 \n \nAnnual Allowances (in thousands) \n$ 76 91 \n100 101 106 \n87 68 55 82 90 \n \nNumber \n2 3 1 3 3 5 5 6 9 11 \n \nAnnual Allowances (in thousands) \n \n$ \n \n2 \n \n4 \n \n1 \n \n4 \n \n3 \n \n5 \n \n6 \n \n5 \n \n9 \n \n11 \n \nNumber \n304 386 477 568 660 738 795 843 913 985 \n \nAnnual Allowances (in thousands) \n \n$ \n \n334 \n \n421 \n \n520 \n \n617 \n \n720 \n \n802 \n \n864 \n \n914 \n \n987 \n \n1,066 \n \n% Increase in Annual Allowance \n28.5 % 26.0 23.5 18.7 16.7 11.4 \n7.7 5.8 8.0 8.0 \n \nAverage Annual Allowances \n$ 1,099 1,091 1,090 1,086 1,091 1,087 1,087 1,084 1,081 1,082 \n \nSEAD-OPEB is a post-employment life insurance plan which does not have annuity payments. \n \n128 \n \n Analysis of Change in Unfunded Accrued Liability (UAL) \n \n2017 \n \n2016 \n \n2015 \n \n2014 \n \n2013 \n \n2012 \n \n2011 \n \n2010 \n \n2009 \n \n2008 \n \nActuarial Section \n \n(continued) 129 \n \nERS \n \nInterest (7.50) added to \n \n$ \n \nprevious UAL \n \nAccrued liability contribution \n \nExperience: Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Salary increases Method changes Amendments (COLAs) Assumption changes Lawsuit Programming modification Data changes Misc. changes \n \nTotal \n \n$ \n \n325.9 $ \n(551.0) \n(48.6) 9.0 \n39.9 7.8 \n127.5 0.0 \n28.9 158.3 \n0.0 0.0 (16.2) 0.0 \n81.5 $ \n \n331.8 $ \n(514.7) \n8.5 12.8 43.6 \n7.8 (0.6) 0.0 28.4 0.0 0.0 0.0 3.6 0.1 \n(78.7) $ \n \n346.2 $ \n(419.4) \n(198.9) 13.9 50.8 10.3 (89.6) 0.0 0.0 80.4 0.0 0.0 14.4 (0.1) \n(192.0) $ \n \nAmount of Increase (Decrease) (in millions) \n \n363.9 $ \n \n338.8 $ \n \n299.2 $ \n \n243.7 $ \n \n(321.7) \n(228.9) 60.4 45.5 9.3 \n(159.4) 0.0 0.0 0.0 0.0 0.0 (6.0) 0.1 \n(236.8) $ \n \n(239.1) \n253.7 20.6 \n103.7 14.1 (46.8) \n(128.3) 0.0 0.0 0.0 0.0 \n18.7 (0.1) \n335.3 $ \n \n(147.7) \n396.3 15.5 93.8 12.1 (74.2) 0.0 \n(118.8) 0.0 0.0 \n26.3 12.9 12.6 \n528.0 $ \n \n(122.9) \n433.6 16.4 91.4 28.4 49.0 0.0 0.0 0.0 0.0 (28.7) 9.1 20.2 \n740.2 $ \n \n169.8 $ \n(89.4) \n710.1 49.2 118.4 15.0 \n(259.2) 0.0 0.0 \n250.7 0.0 0.0 (2.4) \n22.5 \n984.7 $ \n \n124.8 $ \n(99.7) \n609.1 65.4 \n107.3 16.7 \n(296.9) 0.0 \n(358.6) 0.0 \n75.9 0.0 \n270.5 86.4 \n600.9 $ \n \n78.1 \n(86.3) \n129.3 51.3 \n103.0 22.9 (22.7) 0.0 \n188.8 0.0 0.0 0.0 0.0 \n157.6 \n622.0 \n \nPSERS \nInterest (7.50) added to previous UAL \n \nAmount of Increase (Decrease) (in thousands) $ 11,574.7 $ 12,159.9 $ 11,918.7 $ 13,724.1 $ 13,830.7 $ 12,474.4 $ 10,349.3 $ 4,021.0 $ (1,567.9) $ (2,953.7) \n \nAccrued liability contribution \n \n(15,278.9) \n \n(17,394.7) \n \n(17,704.8) \n \n(15,915.4) \n \n(12,497.7) \n \n(4,843.8) \n \n4,022.8 \n \n6,403.4 \n \n5,026.0 \n \n7,267.0 \n \nExperience: Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Method changes Amendments COLAs Assumption changes Lawsuit Data changes Allotment for expenses Misc. changes \nTotal \n \n(3,247.0) (308.6) (879.7) \n4,334.7 0.0 \n15,892.7 (6,786.4) 10,547.5 \n0.0 0.0 0.0 (29.5) \n$ 15,819.5 $ \n \n841.0 (643.8) (228.2) 2,798.1 \n0.0 0.0 (5,492.0) 0.0 0.0 0.0 0.0 157.2 \n \n(12,207.0) 414.9 \n2,618.5 2,875.9 \n0.0 0.0 (14,772.9) 30,030.0 0.0 0.0 0.0 43.0 \n \n(14,071.0) 1,286.7 2,580.8 2,786.0 0.0 0.0 \n(14,398.9) 0.0 0.0 0.0 0.0 \n(64.9) \n \n13,868.0 (381.9) \n4,772.4 2,757.7 (9,259.0) \n0.0 (14,813.1) \n0.0 0.0 0.0 0.0 301.7 \n \n21,922.0 (1,149.5) 4,974.5 2,783.8 \n0.0 0.0 (20,664.9) 0.0 0.0 0.0 0.0 2,586.9 \n \n24,002.0 (3,000.5) 3,403.6 3,167.0 \n0.0 0.0 (16,603.6) 0.0 0.0 0.0 2,122.7 872.4 \n \n39,729.0 (828.9) \n12,375.8 3,047.8 0.0 0.0 \n(14,121.2) 33,717.7 \n0.0 (2,192.3) 2,029.0 \n195.0 \n \n(7,802.5) $ 3,216.3 $ (24,072.6) $ 1,421.2 $ 18,083.4 $ 28,335.7 $ 84,376.3 $ \n \n34,015.0 973.7 \n6,201.3 3,267.7 \n0.0 0.0 0.0 0.0 2,168.0 24,199.5 433.0 (197.3) \n \n6,623.0 420.3 \n3,381.4 4,021.0 \n0.0 0.0 0.0 0.0 0.0 0.0 0.0 (281.8) \n \n74,519.0 $ 18,477.2 \n \n Analysis of Change in Unfunded Accrued Liability (UAL) \n \n2017 \n \n2016 \n \n2015 \n \n2014 \n \n2013 \n \n2012 \n \n2011 \n \n2010 \n \n2009 \n \n2008 \n \nActuarial Section \n \n(continued) 130 \n \nGJRS \n \nInterest (7.50) added to \n \n$ \n \nprevious UAL \n \nAccrued liability contribution \n \nExperience: Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Salary increases Method changes Amendments (COLAs) Assumption changes Data changes Programming modification Misc. changes \n \nTotal \n \n$ \n \n(3,125.4) $ \n1,245.0 \n(1,538.9) (339.7) \n2,307.0 2,353.1 \n187.7 0.0 \n3,345.4 3,615.6 \n0.0 0.0 1,402.0 \n9,451.8 $ \n \nAmount of Increase (Decrease) (in thousands) \n \n(3,457.6) $ (2,259.9) $ (1,207.3) $ (1,977.2) $ (2,774.8) $ (2,891.5) $ (2,636.2) $ (3,360.0) $ (3,585.9) \n \n(746.2) \n \n3,754.1 \n \n5,803.3 \n \n5,187.8 \n \n4,710.8 \n \n4,079.8 \n \n4,592.1 \n \n3,596.2 \n \n4,498.3 \n \n562.3 1,530.2 \n872.4 1,190.9 \n209.7 0.0 \n3,179.6 0.0 0.0 0.0 \n1,086.9 \n4,428.2 \n \n(5,855.8) 639.6 (370.0) \n1,539.1 (8,848.5) \n0.0 0.0 (5,030.9) 0.0 0.0 464.1 \n \n(6,807.0) 2,138.5 (5,962.8) 1,272.3 (10,382.5) \n0.0 0.0 0.0 0.0 0.0 1,110.1 \n \n$ (15,968.2) $ (14,035.4) $ \n \n4,949.6 533.8 \n3,941.4 3,138.0 (4,620.6) (6,827.0) \n0.0 0.0 0.0 4,606.4 1,333.8 \n10,266.0 $ \n \n8,638.5 376.9 \n2,080.7 442.3 \n(4,536.5) 0.0 \n(870.0) 0.0 0.0 \n1,648.9 917.5 \n \n9,404.0 2,076.8 \n(276.3) 750.1 1,265.9 \n0.0 0.0 0.0 0.0 0.0 (12,852.1) \n \n16,228.0 560.9 \n2,290.6 0.0 \n(10,213.5) 0.0 0.0 \n(14,826.5) 579.1 0.0 21.3 \n \n13,941.0 1,102.3 1,982.9 967.2 \n(10,561.2) 0.0 \n(2,359.4) 0.0 \n4,581.2 0.0 \n(240.6) \n \n3,164.0 409.3 \n1,243.3 354.2 \n(3,432.4) 0.0 \n1,265.0 0.0 0.0 0.0 \n(903.4) \n \n10,634.3 $ 1,556.7 $ (3,404.2) $ 9,649.6 $ 3,102.3 \n \nLRS \n \nInterest (7.50) added to \n \n$ \n \nprevious UAL \n \nAccrued liability contribution \n \nExperience: Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Method changes Amendments No COLAs Assumption changes Data changes Misc. changes \n \nTotal \n \n$ \n \n(497.8) $ \n250.3 \n(129.2) 245.9 (257.7) \n99.2 0.0 \n50.4 (458.3) 223.7 \n0.0 (127.9) \n(601.5) $ \n \n(445.9) $ \n338.3 \n24.1 (66.1) (198.9) 26.8 \n0.0 51.5 (418.2) \n0.0 0.0 (4.7) \n(693.1) $ \n \nAmount of Increase (Decrease) (in thousands) \n \n(421.9) $ \n \n(343.3) $ \n \n(301.8) $ \n \n(302.5) $ \n \n(343.4) $ \n \n(508.5) $ \n \n(468.9) $ (426.9) \n \n173.4 \n \n161.9 \n \n(62.4) \n \n33.9 \n \n107.1 \n \n(32.5) \n \n(21.1) \n \n(26.3) \n \n(491.6) (50.8) (10.1) 35.1 0.0 0.0 \n(452.6) 852.3 \n0.0 46.2 \n(320.0) $ \n \n(576.5) 323.8 (347.5) 135.2 \n0.0 0.0 (470.8) 0.0 0.0 69.9 \n(1,047.3) $ \n \n513.9 (29.6) 17.4 144.5 (418.0) (488.1) \n0.0 0.0 0.0 71.1 \n(553.1) $ \n \n829.0 19.1 (84.3) 16.9 0.0 \n(549.7) 0.0 0.0 0.0 \n46.4 \n8.8 $ \n \n906.2 (18.7) 254.5 74.0 \n0.0 (481.8) \n0.0 0.0 0.0 46.9 \n544.9 $ \n \n1,534.0 339.2 105.1 98.8 0.0 (465.3) 0.0 975.2 114.8 41.6 \n2,202.4 $ \n \n1,307.4 240.7 (5.7) 0.0 0.0 0.0 0.0 0.0 \n(1,529.1) (51.7) \n(528.4) $ \n \n241.7 (2.2) \n(429.8) 35.9 0.0 0.0 0.0 0.0 0.0 47.4 \n(560.2) \n \n Analysis of Change in Unfunded Accrued Liability (UAL) \n \n2017 \n \n2016 \n \n2015 \n \n2014 \n \n2013 \n \n2012 \n \n2011 \n \nGMPF* \nInterest (7.50) added to previous UAL \n \nAmount of Increase (Decrease) (in thousands) \n \n$ 1,484.8 $ 1,407.5 $ 1,316.3 $ \n \n1,344.3 $ \n \n1,360.8 $ \n \n1,354.9 $ \n \n1,216.1 \n \nAccrued liability contribution \n \n(1,747.5) \n \n(1,698.6) \n \n(1,765.6) \n \n(1,775.3) \n \n(1,661.5) \n \n(1,502.4) \n \n(1,173.3) \n \nExperience: Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Method changes Assumption changes Expense Deficit Misc. changes \nTotal \n \n(50.0) (109.2) \n11.0 138.9 \n0.0 537.6 \n0.0 64.2 \n \n59.0 119.3 233.3 165.1 \n0.0 0.0 0.0 744.4 \n \n(203.0) 126.1 120.5 236.9 \n0.0 985.8 \n0.0 398.7 \n \n$ 329.8 $ 1,030.0 $ 1,215.7 $ \n \n(247.0) 88.8 (87.9) \n142.6 0.0 0.0 0.0 \n161.1 \n(373.4) $ \n \n39.3 80.2 186.4 137.8 (393.0) \n0.0 0.0 30.6 \n(219.4) $ \n \n107.0 68.3 17.9 \n127.1 0.0 0.0 0.0 \n(93.6) \n79.2 $ \n \n113.8 58.5 205.4 1,469.6 \n0.0 0.0 37.0 (77.0) \n1,850.1 \n \n*Note: Data prior to 2011 is not available for GMPF. \n \n131 \n \nSEAD-OPEB: Data is not available. \n \nActuarial Section \n \n Actuarial Section \n \nSolvency Test Results \n(Dollar amounts in thousands) \nERS \n \nActuarial Accrued Liability for: \n \nActuarial Valuation as of 6/30 \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nActive Member Contributions \n(1) \n \nRetirants \u0026 Beneficiaries \n(2) \n \nActive Member (Employer \nFunded Portion) \n(3) \n \nValuation Assets \n \n$ 616,177 $ 9,756,529 $ \n \n589,012 \n \n10,034,939 \n \n551,607 \n \n10,652,040 \n \n503,867 \n \n11,058,344 \n \n460,861 \n \n11,420,011 \n \n405,841 \n \n11,935,364 \n \n385,058 \n \n12,108,737 \n \n367,462 \n \n12,520,321 \n \n368,281 \n \n12,592,980 \n \n368,935 \n \n12,729,977 \n \n5,308,151 $ 14,017,346 \n \n5,254,071 \n \n13,613,606 \n \n5,091,705 \n \n13,046,193 \n \n5,094,694 \n \n12,667,557 \n \n4,897,050 \n \n12,260,595 \n \n4,641,244 \n \n12,129,803 \n \n4,498,168 \n \n12,376,120 \n \n4,211,744 \n \n12,675,649 \n \n4,238,427 \n \n12,854,518 \n \n4,415,986 \n \n13,088,185 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n \n(2) \n \n(3) \n \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \n100.0% 100.0% 100.0% 100.0% 100.0% \n98.2% 99.0% 98.3% 99.2% 99.9% \n \n68.7% 56.9% 36.2% 21.7% \n7.8% 0.0% 0.0% 0.0% 0.0% 0.0% \n \nPSERS \n \nActuarial Accrued Liability for: \n \nActuarial Valuation as of 6/30 \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nActive Member Contributions \n(1) \n \nRetirants \u0026 Beneficiaries \n(2) \n \nActive Member (Employer \nFunded Portion) \n(3) \n \n$ 15,285 $ 15,862 16,361 16,627 16,917 17,016 16,995 17,196 17,413 18,077 \n \n469,601 $ 506,659 528,808 532,509 537,284 549,796 566,344 585,471 609,807 640,197 \n \n286,064 300,711 330,227 336,790 341,123 343,444 341,026 364,742 361,663 377,661 \n \nValuation Assets \n$ 791,855 769,618 737,406 719,601 710,915 727,268 765,450 805,277 834,554 865,786 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n \n(2) \n \n(3) \n \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \n100.0% 82.2% 58.2% 50.6% 45.9% 46.7% 53.4% 55.5% 57.3% 54.9% \n \nGJRS \n \nActuarial Accrued Liability for: \n \nActuarial Valuation as of 6/30 \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nActive Member Contributions \n(1) \n \nRetirants \u0026 Beneficiaries \n(2) \n \nActive Member (Employer \nFunded Portion) \n(3) \n \nValuation Assets \n \n$ 59,838 $ 90,601 $ \n \n61,188 \n \n108,923 \n \n67,293 \n \n117,730 \n \n71,047 \n \n128,991 \n \n73,998 \n \n141,880 \n \n73,949 \n \n162,364 \n \n80,007 \n \n162,527 \n \n84,170 \n \n174,147 \n \n91,991 \n \n180,107 \n \n84,841 \n \n220,738 \n \n118,077 $ 112,363 96,473 90,440 92,984 99,479 100,894 91,981 104,642 102,028 \n \n313,315 317,624 320,050 327,483 335,225 351,889 373,560 396,399 418,412 439,828 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n \n(2) \n \n(3) \n \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \n(continued) 132 \n \n Actuarial Section \n \nSolvency Test Results \n(Dollar amounts in thousands) \nLRS \n \nActuarial Accrued Liability for: \n \nActuarial Valuation as of 6/30 \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nActive Member Contributions \n(1) \n \nRetirants \u0026 Beneficiaries \n(2) \n \nActive Member (Employer \nFunded Portion) \n(3) \n \n$ 2,853 $ 19,366 $ \n \n2,908 \n \n18,465 \n \n3,166 \n \n19,208 \n \n2,921 \n \n19,759 \n \n3,185 \n \n19,200 \n \n2,951 \n \n19,623 \n \n3,430 \n \n19,006 \n \n3,287 \n \n19,873 \n \n3,630 \n \n19,202 \n \n3,543 \n \n19,382 \n \n2,235 2,150 2,629 2,564 2,581 2,330 2,477 2,530 2,701 2,749 \n \nValuation Assets \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n \n(2) \n \n(3) \n \n$ 30,706 100.0% 100.0% 100.0% 30,303 100.0% 100.0% 100.0% 29,581 100.0% 100.0% 100.0% 29,278 100.0% 100.0% 100.0% 28,990 100.0% 100.0% 100.0% 29,481 100.0% 100.0% 100.0% 30,538 100.0% 100.0% 100.0% 31,635 100.0% 100.0% 100.0% 32,171 100.0% 100.0% 100.0% 32,913 100.0% 100.0% 100.0% \n \nGMPF \n \nActuarial Accrued Liability for: \n \nActuarial Valuation as of 6/30 \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nActive Member Contributions \n(1) \n \nRetirants \u0026 Beneficiaries \n(2) \n \nActive Member (Employer \nFunded Portion) \n(3) \n \n$ \n \n0 \n \n$ 9,449 \n \n0 \n \n12,742 \n \n0 \n \n14,015 \n \n0 \n \n15,379 \n \n0 \n \n17,518 \n \n0 \n \n19,396 \n \n0 \n \n21,389 \n \n0 \n \n24,075 \n \n0 \n \n26,337 \n \n0 \n \n28,867 \n \n$ 9,675 8,279 9,758 11,388 \n10,713 10,660 10,426 11,138 11,874 11,864 \n \nValuation Assets \n$ 5,269 6,413 7,558 8,702 \n10,087 12,131 14,264 16,446 18,414 20,604 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n \n(2) \n \n(3) \n \nn/a \n \n55.8% \n \n0.0% \n \nn/a \n \n50.3% \n \n0.0% \n \nn/a \n \n53.9% \n \n0.0% \n \nn/a \n \n56.6% \n \n0.0% \n \nn/a \n \n57.6% \n \n0.0% \n \nn/a \n \n62.5% \n \n0.0% \n \nn/a \n \n66.7% \n \n0.0% \n \nn/a \n \n68.3% \n \n0.0% \n \nn/a \n \n69.9% \n \n0.0% \n \nn/a \n \n71.4% \n \n0.0% \n \nSEAD-OPEB \n \nActuarial Accrued Liability for: \n \nActuarial Valuation as of 6/30 \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nActive Member Contributions \n(1) \n \nRetirants \u0026 Beneficiaries \n(2) \n \nActive Member (Employer \nFunded Portion) \n(3) \n \n$ \n \n0 $ 486,569 $ 213,315 \n \n0 \n \n524,718 \n \n208,953 \n \n0 \n \n516,633 \n \n174,368 \n \n0 \n \n503,327 \n \n175,093 \n \n0 \n \n528,165 \n \n176,452 \n \n0 \n \n586,228 \n \n168,558 \n \n0 \n \n621,502 \n \n166,518 \n \n0 \n \n621,426 \n \n148,321 \n \n0 \n \n652,291 \n \n180,078 \n \n0 \n \n693,118 \n \n183,468 \n \nValuation Assets \n$ 737,114 628,199 680,449 807,893 818,284 907,831 \n1,037,901 1,046,559 1,028,541 1,121,251 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n \n(2) \n \n(3) \n \nn/a \n \n100.0% \n \n100.0% \n \nn/a \n \n100.0% \n \n49.5% \n \nn/a \n \n100.0% \n \n93.9% \n \nn/a \n \n100.0% \n \n100.0% \n \nn/a \n \n100.0% \n \n100.0% \n \nn/a \n \n100.0% \n \n100.0% \n \nn/a \n \n100.0% \n \n100.0% \n \nn/a \n \n100.0% \n \n100.0% \n \nn/a \n \n100.0% \n \n100.0% \n \nn/a \n \n100.0% \n \n100.0% \n \n(continued) 133 \n \n Statistical Section \n \nStatistical Section \n \nBuilding a Bridge to a More Comfortable Retirement \n \nSidney Lanier Bridge - Brunswick \n \n Statistical Section \nIntroduction \nThe objective of the statistical section is to provide a historical perspective, context and relevant details to assist readers in evaluating the condition of the plans. All nonaccounting data is taken from ERSGA's internal sources except for information which is derived from the actuarial valuations. FY2010 was the first year ERSGA added this information in their Annual Financial Report. Therefore, historical detail may not be complete for some schedules. Statistical information is not presented for SCJRF and DARF as both plans are immaterial, have no active members, and are closed to new members. \nFiduciary Funds Financial Trends \nThe following schedules have been included to help the reader understand how the System's financial position has changed over the past 10 years: \nAdditions by Source Deductions by Type Changes in Fiduciary Net Position Operational Trends The following schedules have been included to help the readers understand how the System's financial report relates to the services provided by the System and the activities it performs: Retiree Information Withdrawal (Refund) Data New Retiree Elections Statistical Data as of June 30, 2018 \nProprietary Fund \nSchedule of Revenue and Expenses 10-year Schedule of Membership \n135 \n \n 136 \n \n(continued) \n \n2009 \n \n2010 \n \n2011 \n \nERS \nEmployee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \n \n$ \n \n43,978 \n \n281,206 \n \n-- \n \n(1,726,302) \n \n-- \n \n$ (1,401,118) \n \n42,052 263,064 \n-- 1,176,741 \n-- \n1,481,857 \n \n39,480 261,132 \n-- 2,269,270 \n-- \n2,569,882 \n \nPSERS \n \nEmployee Contributions \n \n$ \n \nEmployer Contributions \n \nNonemployer Contributions \n \nNet Investment Income (Loss) \n \nOther \n \nTotal Additions to (Deductions \n \nfrom) Fiduciary Net Position \n \n$ \n \n1,472 5,096 \n-- (97,156) \n588 \n(90,000) \n \n1,483 5,530 \n-- 66,404 \n-- \n \n1,451 7,509 \n-- 128,096 \n-- \n \n73,417 137,056 \n \nGJRS \n \nEmployee Contributions \n \n$ \n \nEmployer Contributions \n \nNonemployer Contributions \n \nNet Investment Income (Loss) \n \nOther \n \nTotal Additions to (Deductions \n \nfrom) Fiduciary Net Position \n \n$ \n \n4,612 1,703 \n-- (38,164) \n175 \n(31,674) \n \n5,018 3,369 \n-- 27,378 \n175 \n35,940 \n \n4,721 1,163 \n-- 57,330 \n-- \n63,214 \n \nLRS \n \nEmployee Contributions \n \n$ \n \nEmployer Contributions \n \nNonemployer Contributions \n \nNet Investment Income (Loss) \n \nOther \n \nTotal Additions to (Deductions \n \nfrom) Fiduciary Net Position \n \n$ \n \n320 71 -- \n(3,772) 110 \n(3,271) \n \n318 75 -- \n2,610 110 \n3,113 \n \n320 75 -- \n5,194 -- \n5,589 \n \n2012 \n \n2013 \n \n2014 \n \n2015 \n \n36,561 274,034 \n-- 231,782 \n-- \n \n38,955 358,992 \n-- 1,495,849 \n-- \n \n32,423 418,807 \n10,945 2,021,748 \n-- \n \n33,713 505,668 \n12,495 474,147 \n10 \n \n542,377 1,893,796 2,483,923 1,026,033 \n \n1,426 15,884 \n-- 13,554 \n-- \n \n1,538 24,829 \n-- 88,067 \n-- \n \n1,659 -- \n27,160 123,799 \n-- \n \n30,864 114,434 152,618 \n \n1,800 -- \n28,461 30,129 \n-- \n60,390 \n \n4,904 2,083 \n-- 6,571 \n-- \n13,558 \n \n4,408 2,279 \n-- 42,104 \n-- \n \n4,731 1,373 1,002 60,012 \n-- \n \n48,791 \n \n67,118 \n \n5,061 2,696 1,564 14,697 \n-- \n24,018 \n \n323 76 -- 550 -- \n949 \n \n373 128 \n-- 3,573 \n-- \n4,074 \n \n282 45 -- \n4,969 -- \n5,296 \n \n327 -- -- 1,189 -- \n1,516 \n \n2016 \n \n2017 \n \n2018 \n \n31,961 583,082 \n12,484 141,292 \n10 \n \n35,863 613,201 \n12,080 1,475,626 \n10 \n \n37,130 639,302 \n12,865 1,166,013 \n10 \n \n768,829 2,136,780 1,855,320 \n \n1,925 -- \n28,580 9,809 -- \n \n2,084 -- \n26,277 97,715 \n-- \n \n2,162 -- \n29,276 78,418 \n-- \n \n40,314 \n \n126,076 109,856 \n \n5,507 4,754 2,869 5,055 \n-- \n18,185 \n \n4,906 4,081 2,603 49,259 \n-- \n60,849 \n \n4,910 4,725 1,841 39,877 \n-- \n51,353 \n \n328 \n \n327 \n \n323 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n363 \n \n3,741 \n \n2,962 \n \n-- \n \n-- \n \n-- \n \n691 \n \n4,068 \n \n3,285 \n \nStatistical Section \nAdditions by Source - Contribution/Investment Income (in thousands) \n \n 137 \n \n(continued) \n \nGMPF \n \nEmployee Contributions \n \n$ \n \nEmployer Contributions \n \nNonemployer Contributions \n \nNet Investment Income (Loss) \n \nOther \n \nTotal Additions to (Deductions from) \n \nFiduciary Net Position \n \n$ \n \nSEAD - OPEB \n \nEmployee Contributions \n \n$ \n \nEmployer Contributions \n \nInsurance Premiums \n \nNet Investment Income (Loss) \n \nOther \n \nTotal Additions to (Deductions from) \n \nFiduciary Net Position \n \n$ \n \nDefined Contribution Plan - GDCP \n \nEmployee Contributions \n \n$ \n \nEmployer Contributions \n \nNonemployer Contributions \n \nNet Investment Income (Loss) \n \nOther \n \nTotal Additions to (Deductions from) \n \nFiduciary Net Position \n \n$ \n \n2009 \n-- 1,323 \n-- (657) \n-- \n666 \n-- -- 7,551 (96,424) -- \n(88,873) \n15,608 -- -- \n(5,294) -- \n10,314 \n \n2010 \n-- 1,434 \n-- 565 \n-- \n1,999 \n-- -- 6,755 69,340 -- \n76,095 \n16,002 -- -- \n10,319 -- \n26,321 \n \n2011 \n-- 1,282 \n-- 1,465 \n-- \n2,747 \n-- -- 6,437 144,270 -- \n150,707 \n17,656 -- -- \n775 -- \n18,431 \n \n2012 \n-- 1,521 \n-- 221 \n-- \n1,742 \n-- -- 5,532 17,193 -- \n22,725 \n17,171 -- -- \n652 -- \n17,823 \n \n2013 \n \n2014 \n \n-- 1,703 \n-- 1,374 \n-- \n \n-- 1,892 \n-- 2,179 \n-- \n \n3,077 \n \n4,071 \n \n-- -- 5,075 108,148 -- \n \n-- -- 4,502 154,868 -- \n \n113,223 159,370 \n \n16,676 -- -- \n137 -- \n \n16,290 -- -- \n1,368 -- \n \n16,813 \n \n17,658 \n \n2015 \n-- 1,893 \n-- 585 \n-- \n2,478 \n-- -- 4,187 37,876 -- \n42,063 \n15,655 -- -- \n1,326 -- \n16,981 \n \n2016 \n \n2017 \n \n2018 \n \n-- 1,990 \n-- 240 \n-- \n2,230 \n \n-- 2,018 \n-- 2,262 \n-- \n4,280 \n \n-- 2,377 \n-- 1,928 \n-- \n4,305 \n \n-- -- 3,931 12,559 -- \n \n-- 1 3,793 125,550 -- \n \n-- -- 3,599 101,542 -- \n \n16,490 129,344 105,141 \n \n14,708 -- -- \n5,591 -- \n \n14,921 -- -- \n(1,056) -- \n \n14,585 -- -- \n(356) -- \n \n20,299 13,865 \n \n14,229 \n \nStatistical Section \nAdditions by Source - Contribution/Investment Income (in thousands) \n \n Statistical Section \nAdditions by Source - Contribution/Investment Income (in thousands) \n138 \n \nDefined Contribution Plan - 401(k) \n \nEmployee Contributions \n \n$ \n \nEmployer Contributions \n \nNonemployer Contributions \n \nNet Investment Income (Loss) \n \nOther \n \nTotal Additions to (Deductions from) \n \nFiduciary Net Position \n \n$ \n \nDefined Contribution Plan - 457 \n \nEmployee Contributions \n \n$ \n \nEmployer Contributions \n \nNonemployer Contributions \n \nNet Investment Income (Loss) \n \nOther \n \nTotal Additions to (Deductions from) \n \nFiduciary Net Position \n \n$ \n \n2009 \n33,432 6,939 -- \n(50,330) 750 \n(9,209) \n24,087 -- -- \n(70,066) 626 \n(45,353) \n \n2010 \n33,899 15,664 \n-- 25,283 \n385 \n75,231 \n21,171 -- -- \n35,806 468 \n57,445 \n \n2011 \n38,006 25,442 \n-- 59,581 \n446 \n123,475 \n20,108 -- -- \n70,963 339 \n91,410 \n \n2012 \n40,331 4,355 -- 3,112 800 \n48,598 \n19,551 -- -- \n7,785 -- \n27,336 \n \n2013 \n44,428 18,279 \n-- 52,835 \n948 \n116,490 \n18,753 -- -- \n55,737 -- \n74,490 \n \n2014 \n53,724 21,513 \n-- 78,583 \n1,122 \n154,942 \n17,623 -- -- \n73,746 -- \n91,369 \n \n2015 \n64,870 25,615 \n-- 17,665 \n-- \n109,448 \n17,445 -- -- \n18,991 -- \n36,436 \n \n2016 \n79,422 29,982 \n-- 5,281 1,429 \n116,114 \n17,413 -- -- \n7,855 -- \n25,268 \n \n2017 \n93,608 36,761 \n-- 88,771 \n1,584 \n220,724 \n18,899 -- -- \n59,541 -- \n78,440 \n \n2018 \n110,848 43,176 \n-- 72,671 \n1,744 \n228,439 \n20,133 -- -- \n46,748 -- \n66,881 \n \n Statistical Section \n \nDeductions by Type (in thousands) \n \nERS \n \nBenefit Payments \n \nFiscal Year \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nService \n \nPartial Lump-Sum \nOption \n \n$ \n \n889,669 \n \n878,482 \n \n921,136 \n \n964,485 \n \n1,007,816 \n \n1,051,993 \n \n1,076,676 \n \n1,092,909 \n \n1,130,996 \n \n1,146,226 \n \n22,011 23,480 30,946 31,963 35,933 24,567 24,391 19,154 19,765 21,624 \n \nDisability \n135,743 146,031 140,849 143,317 145,152 146,245 147,418 147,706 151,772 152,469 \n \nSurvivor Benefits \n69,735 82,676 75,891 76,973 80,300 83,193 85,794 87,843 91,750 92,979 \n \nTotal Benefit Payments \n$ 1,117,158 1,130,669 1,168,822 1,216,738 1,269,201 1,305,998 1,334,278 1,347,633 1,394,283 1,413,298 \n \nNet Administrative \nExpenses \n16,809 14,505 14,431 12,051 12,889 \n7,440 7,872 8,506 8,732 8,056 \n \nRefunds \n6,597 6,483 7,515 7,767 7,390 8,757 7,450 7,087 9,033 7,585 \n \nTotal Deductions \nfrom Fiduciary Net Position \n$ 1,140,564 1,151,657 1,190,768 1,236,556 1,289,480 1,322,195 1,349,600 1,363,226 1,412,048 1,428,939 \n \nPSERS \n \nBenefit Payments \n \nFiscal Year \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nService \n \n$ \n \n45,159 \n \n45,741 \n \n46,548 \n \n46,911 \n \n47,805 \n \n48,911 \n \n49,704 \n \n50,572 \n \n52,012 \n \n54,257 \n \nDisability \n5,232 5,402 5,369 5,369 5,328 5,280 5,227 5,172 5,117 5,114 \n \nSurvivor Benefits \n1,806 2,052 2,063 1,903 1,908 1,998 2,041 2,160 2,249 2,449 \n \nTotal Benefit Payments \n \n$ \n \n52,197 \n \n53,195 \n \n53,980 \n \n54,183 \n \n55,041 \n \n56,189 \n \n56,972 \n \n57,903 \n \n59,378 \n \n61,820 \n \nNet Administrative \nExpenses \n588 1,956 2,046 2,040 2,021 1,450 1,545 1,321 1,308 1,331 \n \nRefunds \n261 251 267 349 492 514 456 465 1,031 701 \n \nTotal Deductions \nfrom Fiduciary Net Position \n \n$ \n \n53,046 \n \n55,402 \n \n56,293 \n \n56,572 \n \n57,554 \n \n58,153 \n \n58,973 \n \n59,689 \n \n61,717 \n \n63,852 \n \nGJRS \n \nBenefit Payments \n \nFiscal Year \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nService \n \n$ \n \n9,453 \n \n10,633 \n \n11,245 \n \n12,608 \n \n14,273 \n \n15,305 \n \n16,084 \n \n16,677 \n \n19,349 \n \n22,239 \n \nDisability \n112 114 112 113 112 112 112 112 114 117 \n \nSurvivor Benefits \n1,546 1,618 1,654 1,695 1,865 2,024 2,169 2,222 2,321 2,578 \n \nTotal Benefit Payments \n \n$ \n \n11,111 \n \n12,365 \n \n13,011 \n \n14,416 \n \n16,250 \n \n17,441 \n \n18,365 \n \n19,011 \n \n21,784 \n \n24,934 \n \nNet Administrative \nExpenses \n175 270 290 310 313 754 819 754 728 794 \n \nRefunds \n263 139 260 146 105 \n22 772 261 166 150 \n \nTotal Deductions \nfrom Fiduciary Net Position \n \n$ \n \n11,549 \n \n12,774 \n \n13,561 \n \n14,872 \n \n16,668 \n \n18,217 \n \n19,956 \n \n20,026 \n \n22,678 \n \n25,878 \n \n139 \n \n(continued) \n \n Statistical Section \n \nDeductions by Type (in thousands) \n \nLRS \n \nBenefit Payments \n \nFiscal Year \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nService \n \n$ \n \n1,265 \n \n1,308 \n \n1,309 \n \n1,364 \n \n1,376 \n \n1,336 \n \n1,315 \n \n1,294 \n \n1,323 \n \n1,347 \n \nSurvivor Benefits \n425 436 452 446 448 465 441 429 440 425 \n \nTotal Benefit Payments \n \n$ \n \n1,690 \n \n1,744 \n \n1,761 \n \n1,810 \n \n1,824 \n \n1,801 \n \n1,756 \n \n1,724 \n \n1,763 \n \n1,772 \n \nNet Administrative \nExpenses \n110 120 131 110 119 152 169 313 224 283 \n \nRefunds \n49 47 60 74 88 30 26 38 75 22 \n \nTotal Deductions \nfrom Fiduciary Net Position \n \n$ \n \n1,849 \n \n1,911 \n \n1,952 \n \n1,994 \n \n2,031 \n \n1,983 \n \n1,951 \n \n2,075 \n \n2,062 \n \n2,077 \n \nGMPF \n \nBenefit Payments \n \nFiscal Year \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nService* \n \n$ \n \n382 \n \n489 \n \n579 \n \n678 \n \n772 \n \n841 \n \n896 \n \n963 \n \n1,042 \n \n1,138 \n \nTotal Benefit Payments \n \n$ \n \n382 \n \n489 \n \n579 \n \n678 \n \n772 \n \n841 \n \n896 \n \n963 \n \n1,042 \n \n1,138 \n \nNet Administrative \nExpenses \n-- 43 37 34 31 110 121 262 244 225 \n \nTotal Deductions \nfrom Fiduciary Net Position \n \n$ \n \n382 \n \n532 \n \n616 \n \n712 \n \n803 \n \n951 \n \n1,017 \n \n1,225 \n \n1,286 \n \n1,363 \n \n*The only type of retirement in GMPF is a service retirement. \n \nSEAD-OPEB \n \nFiscal Year \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nBenefit Payments \n \nDeath Benefits** \n \n$ \n \n19,839 \n \n23,642 \n \n23,060 \n \n24,855 \n \n28,482 \n \n28,891 \n \n32,979 \n \n33,911 \n \n36,058 \n \n36,249 \n \nTotal Benefit Payments \n \n$ \n \n19,839 \n \n23,642 \n \n23,060 \n \n24,855 \n \n28,482 \n \n28,891 \n \n32,979 \n \n33,911 \n \n36,058 \n \n36,249 \n \nNet Administrative \nExpenses \n203 203 203 203 203 414 428 599 576 681 \n \nTotal Deductions \nfrom Fiduciary Net Position \n \n$ \n \n20,042 \n \n23,845 \n \n23,263 \n \n25,058 \n \n28,685 \n \n29,305 \n \n33,407 \n \n34,510 \n \n36,634 \n \n36,930 \n \n**The only type of benefit in SEAD-OPEB is a death benefit. \n \n(continued) 140 \n \n Statistical Section \n \nDeductions by Type (in thousands) \nDefined Contribution Plan - GDCP Benefit Payments \n \nFiscal Year \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nPeriodic Payments \n \nTotal Benefit Payments \n \nNet Administrative \nExpenses \n \n$ \n \n9$ \n \n9 \n \n9 \n \n9 \n \n9 \n \n9 \n \n11 \n \n11 \n \n9 \n \n9 \n \n9 \n \n9 \n \n-- \n \n-- \n \n-- \n \n35 \n \n-- \n \n-- \n \n-- \n \n-- \n \n310 1,110 1,180 1,138 1,160 \n991 990 766 785 852 \n \nRefunds \n10,377 10,613 11,390 12,749 14,415 17,721 22,340 11,911 11,544 10,080 \n \nTotal Deductions \nfrom Fiduciary Net Position \n \n$ \n \n10,696 \n \n11,732 \n \n12,579 \n \n13,898 \n \n15,584 \n \n18,721 \n \n23,330 \n \n12,712 \n \n12,329 \n \n10,932 \n \nDefined Contribution Plan - 401(k) \n \nFiscal Year \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nBenefit Payments \n \nDistributions \n \nTotal Benefit Payments \n \nNet Administrative \nExpenses \n \nTotal Deductions \nfrom Fiduciary Net Position \n \n$ \n \n21,105 $ \n \n21,105 \n \n23,618 \n \n23,618 \n \n42,457 \n \n42,457 \n \n36,986 \n \n36,986 \n \n57,351 \n \n57,351 \n \n43,133 \n \n43,133 \n \n95,428 \n \n95,428 \n \n46,508 \n \n46,508 \n \n55,866 \n \n55,866 \n \n64,103 \n \n64,103 \n \n1,028 $ 829 \n2,054 2,111 2,457 2,300 2,755 2,832 3,096 3,639 \n \n22,133 24,447 44,511 39,097 59,808 45,433 98,183 49,340 58,962 67,742 \n \nDefined Contribution Plan - 457 \n \nFiscal Year \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nBenefit Payments \n \nDistributions \n \nTotal Benefit Payments \n \nNet Administrative \nExpenses \n \nTotal Deductions \nfrom Fiduciary Net Position \n \n$ \n \n37,257 $ \n \n37,257 \n \n37,014 \n \n37,014 \n \n44,773 \n \n44,773 \n \n41,835 \n \n41,835 \n \n63,388 \n \n63,388 \n \n45,807 \n \n45,807 \n \n50,479 \n \n50,479 \n \n43,288 \n \n43,288 \n \n38,872 \n \n38,872 \n \n40,690 \n \n40,690 \n \n1,769 $ 2,115 1,064 \n910 996 812 866 820 789 442 \n \n39,026 39,129 45,837 42,745 64,384 46,619 51,345 44,108 39,661 41,132 \n \n141 \n \n (continued) 142 \n \nERS Total Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nPSERS Total Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nGJRS Total Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nLRS Total Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nGMPF Total Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \n \n2009 \n \n2010 \n \n2011 \n \n2012 \n \n2013 \n \n2014 \n \n2015 \n \n2016 \n \n2017 \n \n$ (1,401,118) 1,481,857 2,569,882 \n \n1,140,564 1,151,657 1,190,768 \n \n-- \n \n-- \n \n-- \n \n(2,541,682) 330,200 1,379,114 \n \n542,377 1,236,556 \n(12,724) (706,903) \n \n1,893,796 1,289,480 \n(5,009) 599,307 \n \n2,483,923 1,322,195 \n-- 1,161,728 \n \n1,026,033 1,349,600 \n-- (323,567) \n \n768,829 1,363,226 \n-- (594,397) \n \n2,136,780 1,412,048 \n-- 724,732 \n \n(90,000) 53,046 \n-- (143,046) \n \n73,417 55,402 \n-- 18,015 \n \n137,056 56,293 -- 80,763 \n \n30,864 56,572 \n-- (25,708) \n \n114,434 57,554 \n-- 56,880 \n \n152,618 58,153 -- 94,465 \n \n60,390 58,973 \n-- 1,417 \n \n40,314 59,689 \n-- (19,375) \n \n126,076 61,717 -- 64,359 \n \n(31,674) 11,549 \n-- (43,223) \n \n35,940 12,774 \n-- 23,166 \n \n63,214 13,561 \n-- 49,653 \n \n13,558 14,872 \n-- (1,314) \n \n48,791 16,668 \n-- 32,123 \n \n67,118 18,217 \n-- 48,901 \n \n24,018 19,956 \n-- 4,062 \n \n18,185 20,026 \n-- (1,841) \n \n60,849 22,678 \n-- 38,171 \n \n(3,271) 1,849 \n-- (5,120) \n \n3,113 1,911 \n-- 1,202 \n \n5,589 1,952 \n-- 3,637 \n \n949 1,994 \n-- (1,045) \n \n4,074 2,031 \n-- 2,043 \n \n5,296 1,983 \n-- 3,313 \n \n1,516 1,951 \n-- (435) \n \n691 2,075 \n-- (1,384) \n \n4,068 2,062 \n-- 2,006 \n \n666 \n \n1,999 \n \n2,747 \n \n1,742 \n \n3,077 \n \n4,071 \n \n2,478 \n \n382 \n \n532 \n \n616 \n \n712 \n \n803 \n \n951 \n \n1,017 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n284 \n \n1,467 \n \n2,131 \n \n1,030 \n \n2,274 \n \n3,120 \n \n1,461 \n \n2,230 1,225 \n-- 1,005 \n \n4,280 1,286 \n-- 2,994 \n \n2018 \n1,855,320 1,428,939 \n-- 426,381 \n109,856 63,852 -- 46,004 \n51,353 25,878 \n-- 25,475 \n3,285 2,077 \n-- 1,208 \n4,305 1,363 \n-- 2,942 \n \nChanges in Fiduciary Net Position (in thousands) \n \nStatistical Section \n \n 143 \n \n2009 \n \nSEAD - OPEB \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \n \n$ (88,873) 20,042 -- \n(108,915) \n \nDefined Contribution Plan - GDCP \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \n \n10,314 10,696 \n-- (382) \n \nDefined Contribution Plan - 401(k) \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \n \n(9,209) 22,133 \n-- (31,342) \n \nDefined Contribution Plan - 457 \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \n \n(45,353) 39,026 \n-- (84,379) \n \n2010 \n76,095 23,845 \n-- 52,250 \n26,321 11,732 \n-- 14,589 \n75,231 24,447 \n-- 50,784 \n57,445 39,129 \n-- 18,316 \n \n2011 \n150,707 23,263 -- \n127,444 \n18,431 12,579 \n-- 5,852 \n123,475 44,511 -- 78,964 \n91,410 45,837 \n-- 45,573 \n \n2012 \n22,725 25,058 12,724 10,391 \n17,823 13,898 \n-- 3,925 \n48,598 39,097 \n-- 9,501 \n27,336 42,745 \n-- (15,409) \n \n2013 \n113,223 28,685 \n5,009 89,547 \n16,813 15,584 \n-- 1,229 \n116,490 59,808 \n-- 56,682 \n74,490 64,384 \n-- 10,106 \n \n2014 \n \n2015 \n \n2016 \n \n159,370 29,305 5 \n130,070 \n \n42,063 33,407 \n2 8,658 \n \n16,490 34,510 \n2 (18,018) \n \n17,658 18,721 \n-- (1,063) \n \n16,981 23,330 \n-- (6,349) \n \n20,299 12,712 \n-- 7,587 \n \n154,942 45,433 -- \n109,509 \n \n109,448 98,183 -- 11,265 \n \n116,114 49,340 \n-- 66,774 \n \n91,369 46,619 \n-- 44,750 \n \n36,436 51,345 \n-- (14,909) \n \n25,268 44,108 \n-- (18,840) \n \n2017 \n129,344 36,634 -- 92,710 \n13,865 12,329 \n-- 1,536 \n220,724 58,962 -- \n161,762 \n78,440 39,661 \n-- 38,779 \n \n2018 \n105,141 36,930 -- 68,211 \n14,229 10,932 \n-- 3,297 \n228,439 67,742 -- \n160,697 \n66,881 41,132 \n-- 25,749 \n \nChanges in Fiduciary Net Position (in thousands) \n \nStatistical Section \n \n Number of Retirees \n \nStatistical Section \n \n2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 \n0 \n \nPSERS Retirees \n \n10,000 \n \n18,492 18,104 17,626 16,994 16,434 15,742 15,106 14,613 13,995 13,804 \n20,000 \n \n2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 \n0 \n \nGJRS Retirees \n \n295 290 278 262 235 220 206 201 \n \n358 346 \n \n50 100 150 200 250 300 350 400 \n \n2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 \n210 \n \nLRS Retirees \n \n244 244 235 229 \n \n220 \n \n230 \n \n240 \n \n250 \n \n267 263 257 260 259 259 \n \n260 \n \n270 \n \n2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 \n0 \n \nGMPF Retirees \n \n1,076 985 915 844 795 739 660 568 480 386 \n \n200 \n \n400 \n \n600 \n \n800 \n \n1000 \n \n1200 \n \n144 \n \n Average Monthly Payments to Retirees \n \nStatistical Section \n \n$2,600 $2,400 $2,200 $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 \n \nERS \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \n$6,500 \n \nGJRS \n \n$6,000 \n \n$5,500 \n \n$5,000 \n \n$4,500 \n \n$4,000 \n \n$3,500 \n \n$3,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \n$100 $90 $80 $70 $60 $50 $40 $30 $20 \n \nGMPF \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \n$335 $315 $295 $275 $255 $235 $215 $195 $175 \n \nPSERS \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nLRS \n$650 \n$600 \n$550 \n$500 \n$450 \n$400 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \n145 \n \n Annual Benefit \n \nStatistical Section \n \nThousands \n \nThousands \n \n$1,500,000 \n \nERS Annual Benefit \n \n$1,400,000 \n \n$1,300,000 \n \n$1,200,000 \n \n$1,100,000 \n \n$1,000,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nGJRS Annual Benefit \n$27,000 $22,000 $17,000 $12,000 \n$7,000 $2,000 \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nGMPF Annual Benefit \n$1,200 \n$1,000 \n$800 \n$600 \n$400 \n$200 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nThousands \n \nThousands \n \n$70,000 \n \nPSERS Annual Benefit \n \n$60,000 \n \n$50,000 \n \n$40,000 \n \n$30,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nLRS Annual Benefit \n$2,000 \n$1,800 \n$1,600 \n$1,400 \n$1,200 \n$1,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nThousands \n \n146 \n \n Withdrawal Statistics \n \nStatistical Section \n \nERS Withdrawals \n \n9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 \n- \n \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nERS Average Withdrawal \n$1,800 $1,700 $1,600 $1,500 $1,400 $1,300 $1,200 $1,100 $1,000 \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nERS Annual Withdrawal (in thousands) \n \n$9,500 $9,000 $8,500 $8,000 $7,500 $7,000 $6,500 $6,000 $5,500 $5,000 \n \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nPSERS Withdrawals \n7,000 6,000 5,000 4,000 3,000 2,000 1,000 \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nPSERS Average Withdrawal \n$250 $240 $230 $220 $210 $200 $190 $180 $170 $160 $150 \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nGJRS Withdrawals \n14 12 10 8 6 4 2 - \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \nLRS Withdrawals \n14 12 10 \n8 6 4 2 - \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nGJRS Average Withdrawal \n$80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 \n$0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \n$14,000 \n \nLRS Average Withdrawal \n \n$12,000 \n \n$10,000 \n \n$8,000 \n \n$6,000 \n \n$4,000 \n \n$2,000 \n \n$0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nGJRS Annual Withdrawal (in thousands) \n$900 $800 $700 $600 $500 $400 $300 $200 $100 \n$0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \nLRS Annual Withdrawal (in thousands) \n$100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nNote: The GMPF Plan does not have a refund feature. \n \n147 \n \n Average Monthly Benefit Payment for New Retirees - ERS \n \nStatistical Section \n \n2009 Average Monthly Benefit Average Final Average Salary Number of Retirees \n2010 Average Monthly Benefit Average Final Average Salary Number of Retirees \n2011 Average Monthly Benefit Average Final Average Salary Number of Retirees \n2012 Average Monthly Benefit Average Final Average Salary Number of Retirees \n2013 Average Monthly Benefit Average Final Average Salary Number of Retirees \n2014 Average Monthly Benefit Average Final Average Salary Number of Retirees \n2015 Average Monthly Benefit Average Final Average Salary Number of Retirees \n2016 Average Monthly Benefit Average Final Average Salary Number of Retirees \n2017 Average Monthly Benefit Average Final Average Salary Number of Retirees \n2018 Average Monthly Benefit Average Final Average Salary Number of Retirees \n \n10-15 \n \nYears of Credited Service \n \n16-20 \n \n21-25 \n \n26-30 Over 30 \n \nTotal \n \n$717.65 $3,109.07 \n344 \n \n$1,059.22 $3,179.28 \n320 \n \n$1,458.18 $3,483.90 \n301 \n \n$1,910.75 $3,875.27 \n324 \n \n$3,627.21 $4,548.96 \n949 \n \n$2,272.58 $3,891.02 \n2,238 \n \n$694.23 $3,023.45 \n391 \n \n$1,086.00 $3,345.36 \n324 \n \n$1,502.32 $3,555.21 \n332 \n \n$1,849.65 $3,802.65 \n375 \n \n$3,653.29 $4,588.73 \n981 \n \n$2,247.01 $3,900.93 \n2,403 \n \n$734.74 $3,228.07 \n437 \n \n$1,107.16 $3,205.88 \n322 \n \n$1,504.51 $3,478.73 \n389 \n \n$1,995.24 $3,762.88 \n461 \n \n$3,575.54 $4,532.07 \n885 \n \n$2,143.95 $3,825.88 \n2,494 \n \n$729.60 $3,040.00 \n518 \n \n$1,247.16 $3,275.37 \n385 \n \n$1,624.82 $3,388.85 \n414 \n \n$2,125.35 $3,807.26 \n486 \n \n$3,708.26 $4,702.47 \n776 \n \n$2,109.84 $3,775.94 \n2,578 \n \n$836.73 $3,391.36 \n684 \n \n$1,183.19 $3,339.84 \n453 \n \n$1,650.14 $3,411.24 \n466 \n \n$2,120.33 $3,765.16 \n780 \n \n$3,487.96 $4,659.17 \n1,033 \n \n$2,088.46 $3,855.98 \n3,416 \n \n$769.91 $3,309.44 \n483 \n \n$1,232.07 $3,337.66 \n306 \n \n$1,527.47 $3,263.54 \n311 \n \n$2,057.32 $3,718.37 \n477 \n \n$3,242.25 $4,486.34 \n542 \n \n$1,870.02 $3,699.86 \n2,119 \n \n$750.98 $3,269.25 \n524 \n \n$1,224.00 $3,443.88 \n316 \n \n$1,620.88 $3,547.63 \n341 \n \n$2,068.82 $3,750.99 \n623 \n \n$3,074.69 $4,536.68 \n561 \n \n$1,837.97 $3,760.27 \n2,365 \n \n$759.54 $3,189.20 \n559 \n \n$1,224.52 $3,376.84 \n340 \n \n$1,760.28 $3,657.08 \n330 \n \n$2,171.75 $3,935.01 \n530 \n \n$2,996.81 $4,618.83 \n466 \n \n$1,783.98 $3,764.34 \n2,225 \n \n$796.76 $3,479.90 \n551 \n \n$1,204.27 $3,405.67 \n395 \n \n$1,786.30 $3,850.73 \n359 \n \n$2,109.53 $3,813.78 \n453 \n \n$2,870.19 $4,595.25 \n470 \n \n$1,732.36 $3,829.66 \n2,228 \n \n$794.94 $3,505.83 \n570 \n \n$1,318.26 $3,674.56 \n389 \n \n$1,679.64 $3,707.56 \n306 \n \n$2,302.80 $4,154.11 \n525 \n \n$2,879.55 $4,638.01 \n476 \n \n$1,791.49 $3,950.06 \n2,266 \n \n148 \n \n(continued) \n \n Statistical Section \nAverage Monthly Benefit Payment for New Retirees - PSERS \n \n2009 \nAverage Monthly Benefit Number of Retirees \n2010 \nAverage Monthly Benefit Number of Retirees \n2011 \nAverage Monthly Benefit Number of Retirees \n2012 \nAverage Monthly Benefit Number of Retirees \n2013 \nAverage Monthly Benefit Number of Retirees \n2014 \nAverage Monthly Benefit Number of Retirees \n2015 \nAverage Monthly Benefit Number of Retirees \n2016 \nAverage Monthly Benefit Number of Retirees \n2017 \nAverage Monthly Benefit Number of Retirees \n2018 \nAverage Monthly Benefit Number of Retirees \n \n10-15 \n \nYears of Credited Service \n \n16-20 \n \n21-25 \n \n26-30 Over 30 \n \nTotal \n \n$156.52 391 \n \n$224.92 200 \n \n$289.93 157 \n \n$357.58 91 \n \n$460.04 90 \n \n$242.89 929 \n \n$157.66 448 \n \n$224.92 200 \n \n$300.93 162 \n \n$359.24 76 \n \n$464.07 105 \n \n$243.41 1,001 \n \n$158.67 463 \n \n$227.68 200 \n \n$297.01 126 \n \n$374.01 79 \n \n$479.42 114 \n \n$245.04 982 \n \n$159.25 480 \n \n$236.46 182 \n \n$303.66 136 \n \n$362.36 74 \n \n$476.51 87 \n \n$238.59 958 \n \n$159.34 580 \n \n$232.10 255 \n \n$300.66 175 \n \n$360.75 113 \n \n$478.49 133 \n \n$245.72 1,256 \n \n$154.20 603 \n \n$227.41 268 \n \n$297.58 147 \n \n$345.98 121 \n \n$437.20 131 \n \n$233.71 1,270 \n \n$155.20 568 \n \n$225.02 254 \n \n$290.82 166 \n \n$360.11 105 \n \n$471.12 99 \n \n$233.25 1,192 \n \n$160.28 529 \n \n$232.09 273 \n \n$298.45 454 \n \n$358.11 103 \n \n$489.48 103 \n \n$242.18 1,162 \n \n$153.93 515 \n \n$226.90 230 \n \n$286.35 126 \n \n$348.16 78 \n \n$437.62 104 \n \n$228.12 1,053 \n \n$156.77 508 \n \n$228.48 241 \n \n$293.26 148 \n \n$363.46 91 \n \n$480.15 102 \n \n$238.68 1,090 \n \nNote: PSERS is not a final average pay plan. \n \n(continued) 149 \n \n Statistical Section \nAverage Monthly Benefit Payment for New Retirees - GJRS \n \n2009 Average Monthly Benefit Average Final Average Salary Number of Retirees \n2010 Average Monthly Benefit Average Final Average Salary Number of Retirees \n2011 Average Monthly Benefit Average Final Average Salary Number of Retirees \n2012 Average Monthly Benefit Average Final Average Salary Number of Retirees \n2013 Average Monthly Benefit Average Final Average Salary Number of Retirees \n2014 Average Monthly Benefit Average Final Average Salary Number of Retirees \n2015 Average Monthly Benefit Average Final Average Salary Number of Retirees \n2016 Average Monthly Benefit Average Final Average Salary Number of Retirees \n2017 Average Monthly Benefit Average Final Average Salary Number of Retirees \n2018 Average Monthly Benefit Average Final Average Salary Number of Retirees \n \n10-15 \n \n16-20 \n \nYears of Credited Service \n \n21-25 \n \n26-30 \n \nOver 30 \n \nTotal \n \n$4,874.28 $9,519.58 \n8 \n \n$5,883.17 $8,825.88 \n5 \n \n$7,366.55 $10,071.58 \n7 \n \n$6,630.61 $8,881.08 \n5 \n \n$7,639.64 $10,232.57 \n2 \n \n$6,478.85 $9,506.14 \n27 \n \n$6,337.43 $10,490.01 \n1 \n \n$4,563.90 $7,018.08 \n5 \n \n$7,643.86 $10,490.01 \n2 \n \n$6,422.80 $8,602.74 \n4 \n \n0 \n \n$6,242.00 \n \n0 \n \n$9,150.21 \n \n0 \n \n12 \n \n$4,632.24 $9,211.23 \n4 \n \n$10,170.24 $14,910.13 \n2 \n \n$9,799.81 $13,052.66 \n2 \n \n$8,428.40 $11,264.63 \n3 \n \n0 \n \n$7,614.02 \n \n0 $11,505.85 \n \n0 \n \n11 \n \n$4,204.95 $7,788.39 \n5 \n \n$6,610.26 $9,887.17 \n4 \n \n$7,565.84 $10,361.29 \n4 \n \n$8,791.96 $11,714.95 \n7 \n \n$7,831.84 $10,490.01 \n1 \n \n$6,915.64 $10,035.77 \n20 \n \n$5,179.20 $9,271.48 \n8 \n \n$5,844.29 $8,344.35 \n7 \n \n$6,170.52 $8,370.72 \n7 \n \n$7,954.14 $10,624.52 \n5 \n \n$6,169.77 $8,864.27 \n7 \n \n$6,132.24 $9,010.27 \n34 \n \n$2,989.92 $6,265.39 \n6 \n \n$4,468.12 $7,772.95 \n2 \n \n$6,496.50 $8,998.48 \n7 \n \n0 \n \n$2,703.82 \n \n$4,470.15 \n \n0 \n \n$4,289.57 \n \n$7,166.46 \n \n0 \n \n3 \n \n18 \n \n$4,010.30 $6,937.39 \n2 \n \n$6,317.44 $9,141.51 \n5 \n \n$7,051.15 $9,751.01 \n7 \n \n$7,589.28 $10,165.12 \n2 \n \n$2,406.28 $3,222.98 \n1 \n \n$6,267.69 $8,905.45 \n17 \n \n0 \n \n$6,534.36 \n \n$8,121.58 \n \n0 \n \n$9,655.37 $11,204.04 \n \n0 \n \n6 \n \n2 \n \n0 \n \n$8,635.31 \n \n$7,120.51 \n \n0 $11,566.18 $10,211.83 \n \n0 \n \n1 \n \n9 \n \n$4,519.89 $9,049.84 \n10 \n \n$6,690.09 $9,833.21 \n18 \n \n$8,737.31 $12,013.62 \n13 \n \n$5,895.46 $7,896.41 \n4 \n \n$8,026.56 $10,750.81 \n10 \n \n$6,964.60 $10,232.13 \n55 \n \n$6,056.07 $11,385.55 \n3 \n \n$7,565.45 $11,096.74 \n5 \n \n$7,700.44 $10,618.33 \n7 \n \n$7,979.26 $10,687.46 \n2 \n \n0 \n \n$7,403.36 \n \n0 $10,902.57 \n \n0 \n \n17 \n \n(continued) 150 \n \n Average Monthly Benefit Payment for New Retirees - LRS \n \nStatistical Section \n \n2009 \nAverage Monthly Benefit Number of Retirees \n2010 \nAverage Monthly Benefit Number of Retirees \n2011 \nAverage Monthly Benefit Number of Retirees \n2012 \nAverage Monthly Benefit Number of Retirees \n2013 \nAverage Monthly Benefit Number of Retirees \n2014 \nAverage Monthly Benefit Number of Retirees \n2015 \nAverage Monthly Benefit Number of Retirees \n2016 \nAverage Monthly Benefit Number of Retirees \n2017 \nAverage Monthly Benefit Number of Retirees \n2018 \nAverage Monthly Benefit Number of Retirees \n \n8-14 \n \nYears of Credited Service \n \n15-19 \n \n20-24 \n \n25-29 Over 29 \n \nTotal \n \n$425.39 2 \n \n$650.99 1 \n \n0 $921.00 $1,203.00 $800.10 \n \n0 \n \n2 \n \n3 \n \n8 \n \n$372.93 $558.00 \n \n0 \n \n0 \n \n0 $465.47 \n \n8 \n \n1 \n \n0 \n \n0 \n \n0 \n \n9 \n \n$341.79 12 \n \n$589.12 1 \n \n0 $843.26 $934.73 $456.99 \n \n0 \n \n2 \n \n1 \n \n16 \n \n$363.66 $549.08 \n \n0 \n \n0 $1,286.43 $548.46 \n \n4 \n \n2 \n \n0 \n \n0 \n \n1 \n \n7 \n \n$308.15 14 \n \n$568.93 4 \n \n$670.94 2 \n \n0 $1,166.93 \n \n0 \n \n3 \n \n$497.03 23 \n \n$289.25 $480.21 \n \n0 \n \n0 \n \n0 $336.99 \n \n3 \n \n1 \n \n0 \n \n0 \n \n0 \n \n4 \n \n$341.03 5 \n \n$382.95 1 \n \n$642.84 3 \n \n0 $1,228.50 \n \n0 \n \n2 \n \n$588.51 11 \n \n$322.51 $524.09 \n \n0 \n \n0 \n \n0 $380.11 \n \n5 \n \n2 \n \n0 \n \n0 \n \n0 \n \n7 \n \n$362.52 $557.02 $740.79 \n \n0 \n \n0 $484.34 \n \n6 \n \n3 \n \n2 \n \n0 \n \n0 \n \n11 \n \n$323.56 $476.35 $719.16 \n \n0 \n \n0 $418.44 \n \n5 \n \n3 \n \n1 \n \n0 \n \n0 \n \n9 \n \nNote: LRS is not a final average pay plan. \n \n(continued) 151 \n \n Statistical Section \nAverage Monthly Benefit Payment for New Retirees - GMPF \n \n2009 \nAverage Monthly Benefit Number of Retirees \n2010 \nAverage Monthly Benefit Number of Retirees \n2011 \nAverage Monthly Benefit Number of Retirees \n2012 \nAverage Monthly Benefit Number of Retirees \n2013 \nAverage Monthly Benefit Number of Retirees \n2014 \nAverage Monthly Benefit Number of Retirees \n2015 \nAverage Monthly Benefit Number of Retirees \n2016 \nAverage Monthly Benefit Number of Retirees \n2017 \nAverage Monthly Benefit Number of Retirees \n2018 \nAverage Monthly Benefit Number of Retirees \n \nYears of Credited Service \n \n20-25 \n \n26-30 Over 30 Total \n \n$59.50 20 \n \n$87.63 19 \n \n$100.00 53 \n \n$88.64 92 \n \n$63.82 17 \n \n$85.83 18 \n \n$100.00 56 \n \n$90.44 91 \n \n$63.16 19 \n \n$91.47 17 \n \n$100.00 52 \n \n$90.40 88 \n \n$61.54 13 \n \n$90.33 15 \n \n$100.00 63 \n \n$92.83 90 \n \n$59.44 18 \n \n$89.55 22 \n \n$100.00 42 \n \n$88.29 82 \n \n$61.11 9 \n \n$90.53 19 \n \n$100.00 31 \n \n$91.02 59 \n \n$62.07 15 \n \n$94.10 16 \n \n$100.00 20 \n \n$86.99 51 \n \n$66.30 27 \n \n$89.29 14 \n \n$100.00 30 \n \n$85.07 71 \n \n$65.00 11 \n \n$89.05 21 \n \n$100.00 37 \n \n$91.09 69 \n \n$61.00 10 \n \n$87.39 23 \n \n$100.00 44 \n \n$91.17 77 \n \nNote: GMPF is not a final average pay plan. \n \n152 \n \n Retired Members by Retirement Type \nERS June 30, 2018 \n \nStatistical Section \n \nAmount of Monthly Benefit \n$ 1 - 500 501 - 1,000 1,001 - 1,500 1,501 - 2,000 2,001 - 2,500 2,501 - 3,000 3,001 - 3,500 3,501 - 4,000 4,001 - 4,500 4,501 - 5,000 5,001 - 5,500 5,501 - 6,000 over 6,000 \n \nRetirement Type \n \nService Disability Survivor \n \n3,811 \n \n262 \n \n341 \n \n8,249 \n \n1,043 \n \n330 \n \n6,736 \n \n1,159 \n \n235 \n \n5,233 \n \n944 \n \n166 \n \n4,123 \n \n779 \n \n110 \n \n3,312 \n \n596 \n \n71 \n \n2,592 \n \n429 \n \n53 \n \n2,144 \n \n318 \n \n41 \n \n1,696 \n \n232 \n \n24 \n \n1,504 \n \n179 \n \n12 \n \n1,178 \n \n123 \n \n8 \n \n797 \n \n69 \n \n8 \n \n1,850 \n \n95 \n \n11 \n \nTotals \n \n43,225 \n \n6,228 1,410 \n \nPSERS June 30, 2018 \n \nAmount of Monthly Benefit \n$ 1 - 100 101 - 200 201 - 300 301 - 400 401 - 500 over 500 \n \nRetirement Type Service Disability Survivor \n \n87 \n \n6 \n \n231 \n \n6,103 \n \n36 \n \n157 \n \n5,029 \n \n274 \n \n50 \n \n2,714 \n \n382 \n \n6 \n \n1,641 \n \n289 \n \n1 \n \n1,288 \n \n198 \n \n-- \n \nTotals \n \n16,862 1,185 \n \n445 \n \n(continued) 153 \n \n Retired Members by Retirement Type \nGJRS June 30, 2018 \n \nStatistical Section \n \nAmount of Monthly Benefit \n$ 1 - 1,000 1,001 - 2,000 2,001 - 3,000 3,001 - 4,000 4,001 - 5,000 5,001 - 6,000 6,001 - 7,000 7,001 - 8,000 over 8,000 \n \nRetirement Type Service Disability Survivor \n \n12 \n \n-- \n \n1 \n \n21 \n \n-- \n \n6 \n \n30 \n \n-- \n \n1 \n \n37 \n \n-- \n \n1 \n \n26 \n \n2 \n \n1 \n \n15 \n \n-- \n \n-- \n \n35 \n \n-- \n \n-- \n \n72 \n \n-- \n \n-- \n \n98 \n \n-- \n \n-- \n \nTotals \n \n346 \n \n2 \n \n10 \n \nLRS June 30, 2018 \n \nAmount of Monthly Benefit \n$ 1 - 250 251 - 500 501 - 750 751 - 1,000 over 1,000 \n \nRetirement Type Service Disability Survivor \n \n21 \n \n-- \n \n-- \n \n119 \n \n-- \n \n6 \n \n70 \n \n-- \n \n-- \n \n32 \n \n-- \n \n-- \n \n19 \n \n-- \n \n-- \n \nTotals \n \n261 \n \n0 \n \n6 \n \nGMPF June 30, 2018 \n \nAmount of Monthly Benefit \n \n$ \n \n1 - 49 \n \n50 - 100 \n \nover 100 \n \nRetirement Type Service -- 1,076 -- \n \nTotals \n \n1,076 \n \n154 \n \n Retired Members by Optional Form of Benefit \nERS June 30, 2018 \n \nStatistical Section \n \nAmount of Monthly Benefit Maximum Plan Option 1 \n \n$ 1 - 500 501 - 1,000 1,001 - 1,500 1,501 - 2,000 2,001 - 2,500 2,501 - 3,000 3,001 - 3,500 3,501 - 4,000 4,001 - 4,500 4,501 - 5,000 over 5,000 \n \n1,318 4,158 3,354 2,607 2,044 1,584 1,097 \n847 612 482 930 \n \n399 1,195 1,086 \n981 726 546 389 266 197 121 273 \n \nForm of Benefit Option 2 Option 3 Option 4 Option 5A Option 5B \n \n1,241 \n \n415 \n \n825 \n \n154 \n \n62 \n \n1,890 \n \n646 \n \n1,131 \n \n389 \n \n213 \n \n1,376 \n \n639 \n \n1,006 \n \n431 \n \n238 \n \n918 \n \n570 \n \n679 \n \n303 \n \n285 \n \n627 \n \n462 \n \n583 \n \n313 \n \n257 \n \n463 \n \n346 \n \n646 \n \n173 \n \n221 \n \n323 \n \n310 \n \n635 \n \n153 \n \n167 \n \n264 \n \n210 \n \n661 \n \n113 \n \n142 \n \n170 \n \n179 \n \n629 \n \n56 \n \n109 \n \n135 \n \n181 \n \n639 \n \n52 \n \n85 \n \n305 \n \n440 \n \n1,927 \n \n95 \n \n169 \n \nTotals \n \n19,033 \n \n6,179 \n \n7,712 \n \n4,398 \n \n9,361 \n \n2,232 \n \n1,948 \n \nMaximum Plan Single life annuity \n \nOption 1 \n \nReduced single life annuity with a guarantee of the remainder of the annuity savings fund account (contributions and interest), if any, to be paid upon the retiree's death \n \nOption 2 \n \n100% joint and survivor annuity with a popup option upon divorce \n \nOption 3 \n \n50% joint and survivor annuity with a popup option upon divorce \n \nOption 4 \n \nVarious options, including a specified monthly amount payable to a beneficiary upon the retiree's death, several period certain annuities of varying length, and a five-year accelerated benefit \n \nOption 5A \n \n100% joint and survivor annuity with a popup option upon divorce or the death of the beneficiary before the retiree \n \nOption 5B \n \n50% joint and survivor annuity with a popup option upon divorce or the death of the beneficiary before the retiree \n \n155 \n \n(continued) \n \n Retired Members by Optional Form of Benefit \nPSERS June 30, 2018 \n \nStatistical Section \n \nAmount of Monthly Benefit \n \nForm of Benefit \n \nMaximum Plan Option AA Option AB Option AC Option AD Option B \n \n$ 1 - 100 101 - 200 201 - 300 301 - 400 401 - 500 over 500 \n \n1 \n \n41 \n \n247 \n \n7 \n \n14 \n \n14 \n \n4,323 \n \n1,116 \n \n370 \n \n10 \n \n122 \n \n355 \n \n4,378 \n \n527 \n \n193 \n \n5 \n \n53 \n \n197 \n \n2,607 \n \n316 \n \n71 \n \n9 \n \n18 \n \n81 \n \n1,720 \n \n127 \n \n42 \n \n3 \n \n7 \n \n32 \n \n1,382 \n \n54 \n \n24 \n \n4 \n \n-- \n \n22 \n \nTotals \n \n14,411 \n \n2,181 \n \n947 \n \n38 \n \n214 \n \n701 \n \nMaximum Plan Single life annuity \n \nOption AA \n \n100% joint and survivor annuity \n \nOption AB \n \n50% joint and survivor annuity \n \nOption AC \n \nJoint and survivor annuity with a specified monthly amount payable to a beneficiary \n \nOption AD \n \nJoint and survivor annuity with the amount payable to a beneficiary limited by the age difference between the retiree and the beneficiary \n \nOption B \n \nAnnuity for a guaranteed period of time (5, 10, 15, or 20 years). If retiree outlives guarantee period, there is no benefit due after retiree's death \n \n156 \n \n(continued) \n \n Retired Members by Optional Form of Benefit \nGJRS June 30, 2018 \n \nStatistical Section \n \nAmount of Monthly Benefit \n \nForm of Benefit \n \nMaximum Plan \n \n$ 1 - 1,000 \n \n-- \n \n1,001 - 2,000 \n \n2 \n \n2,001 - 3,000 \n \n3 \n \n3,001 - 4,000 \n \n2 \n \n4,001 - 5,000 \n \n5 \n \n5,001 - 6,000 \n \n7 \n \n6,001 - 7,000 \n \n7 \n \n7,001 - 8,000 \n \n21 \n \nover 8,000 \n \n18 \n \nSpousal Coverage \n13 25 28 36 24 \n7 28 51 80 \n \nOption 1 \n-- -- -- -- -- 1 -- -- -- \n \nOption 2 \n-- -- -- -- -- -- -- -- -- \n \nOption 3 \n-- -- -- -- -- -- -- -- -- \n \nOption 4A Option 4B Option 4C \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \nTotals \n \n65 \n \n292 \n \n1 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \nMaximum Plan \n \nSingle life annuity \n \nSpousal Coverage* Indicates the member paid additional contributions to provide a 50% joint and survivor annuity at retirement \n \nOption 1** \n \n100% joint and survivor annuity \n \nOption 2** \n \n66 % joint and survivor annuity \n \nOption 3** \n \n50% joint and survivor annuity \n \nOption 4A** \n \n100% joint and survivor annuity with a popup option upon death of beneficiary before the retiree \n \nOption 4B** \n \n66 % joint and survivor annuity with a popup option upon death of beneficiary before the retiree \n \nOption 4C** \n \n50% joint and survivor annuity with a popup option upon death of beneficiary before the retiree \n \n*Only available if membership start date prior to July 1, 2012 **Only available if membership start date on or after July 1, 2012 \n \n157 \n \n(continued) \n \n Retired Members by Optional Form of Benefit \nLRS June 30, 2018 \n \nStatistical Section \n \nAmount of Monthly Benefit \n$ 1 - 250 251 - 500 501 - 750 751 - 1,000 over 1,000 \n \nForm of Benefit \n \nMaximum Plan Option B1 Option B2 \n \n-- \n \n17 \n \n4 \n \n44 \n \n71 \n \n10 \n \n38 \n \n20 \n \n12 \n \n8 \n \n21 \n \n3 \n \n6 \n \n10 \n \n3 \n \nTotals \n \n96 \n \n139 \n \n32 \n \nMaximum Plan Single life annuity \n \nOption B1 \n \n100% joint and survivor annuity \n \nOption B2 \n \n50% joint and survivor annuity \n \nGMPF and SEAD-OPEB June 30, 2018 \nThe GMPF Plan provides a benefit only in one form, a life annuity. All 1,076 current retirees, therefore, have this same form of benefit. The SEAD-OPEB plan provides only a lump sum death benefit to a member's beneficiary(ies). \n \n158 \n \n Top Participatory Employers FY10 \n \nStatistical Section \n \nMember Count % of total plan \n \nERS \nDepartment of Corrections Department of Behavioral Health and Developmental Disability Department of Transportation Department of Labor Department of Juvenile Justice Department of Natural Resources Department of Human Resources Department of Driver Services Department of Community Health Department of Revenue \n \n12,527 6,869 4,846 3,867 3,679 2,079 1,942 1,674 1,351 1,154 \n \n18.2% 10.0% \n7.1% 5.7% 5.4% 3.0% 2.8% 2.4% 2.0% 1.7% \n \nTotal Top Employers Total ERS Member Count \nPSERS \nGwinnett County Schools Cobb County Schools Dekalb County Schools Clayton County Schools Muscogee County Schools Henry County Schools Cherokee County Schools Forsyth County Schools Richmond County Schools Paulding County Schools \n \n39,988 68,567 \n3,931 2,471 2,234 1,382 \n970 909 902 894 877 715 \n \n58.3% \n9.8% 6.2% 5.6% 3.4% 2.4% 2.3% 2.3% 2.2% 2.2% 1.8% \n \nTotal Top Employers Total PSERS Member Count \nGJRS \nCouncil of Superior Court Judges Council of State Court Judges Prosecuting Attorney's Council Council of Juvenile Judges \n \n15,285 39,962 \n203 108 \n96 71 \n \n38.2% \n41.0% 21.8% 19.4% 14.4% \n \nTotal Top Employers Total GJRS Member Count \n \n478 \n \n96.6% \n \n495 \n \nData from 9 years prior is unavailable. FY10 data is the first available. Data for SEAD-OPEB is not available. \n \n159 \n \n(continued) \n \n Top Participatory Employers FY18 \n \nStatistical Section \n \nMember Count % of total plan \n \nERS \nDepartment of Corrections Department of Behavioral Health and Developmental Disabilities Department of Transportation Department of Human Services Department of Juvenile Justice Department of Community Supervision Department of Public Safety Department of Natural Resources Department of Labor Department of Revenue \n \n9,583 4,198 3,873 3,465 3,249 2,090 1,847 1,732 1,069 1,038 \n \n15.86% 6.95% 6.41% 5.74% 5.38% 3.46% 3.06% 2.87% 1.77% 1.72% \n \nTotal Top Employers Total ERS Member Count \nPSERS \nGwinnett County Schools Cobb County Schools Dekalb County Schools Clayton County Schools Chatham County Schools Forsyth County Schools Richmond County Schools Houston County Schools Muscogee County Schools Cherokee County Schools \n \n32,144 60,406 \n3,429 2,210 2,202 1,293 \n970 932 820 776 731 714 \n \n53.21% \n9.81% 6.32% 6.30% 3.70% 2.77% 2.67% 2.35% 2.22% 2.09% 2.04% \n \nTotal Top Employers Total PSERS Member Count \nGJRS \nCouncil of Superior Courts Council of State Court Judges Council of Juvenile Courts Solicitor General \n \n14,077 34,956 \n210 127 \n73 60 \n \n40.27% \n39.85% 24.10% 13.85% 11.39% \n \nTotal Top Employers Total GJRS Member Count \nSEAD-OPEB \nDepartment of Corrections Department of Transportation Department of Human Services Department of Behavioral Health and Developmental Disabilities Department of Juvenile Justice Department of Natural Resources Department of Community Supervision Department of Public Safety Department of Labor Department of Community Health \n \n470 527 \n3,792 2,269 1,646 1,366 1,048 \n971 932 872 681 426 \n \n89.18% \n14.57% 8.72% 6.32% 5.25% 4.03% 3.73% 3.58% 3.35% 2.62% 1.64% \n \nTotal Top Employers Total Active Member Count \n \n14,003 26,032 \n \n53.79% \n \n160 \n \n Statistical Section \nSchedule of Revenue and Expenses State Employees' Assurance Department Active Members Fund \nYear ended June 30, 2018 (In thousands) \n \nOperating revenue: Insurance premiums Total operating revenue \n \n2018 \n \n$ \n \n540 \n \n540 \n \nOperating expenses: Death benefits Administrative expenes Total operating expenses Total operating loss \n \n2,972 76 \n3,048 (2,508) \n \nNonoperating revenues (expenses): Allocation of investment income from pooled investment fund Investment expenses Total nonoperating revenues Change in net position \n \n24,493 (64) \n24,429 21,921 \n \nTotal net position: Beginning of year End of year \n \n267,286 $ 289,207 \n \n2017 \n599 599 \n4,019 64 \n4,083 (3,484) \n29,847 (62) \n29,785 26,301 \n240,985 267,286 \n \nIn fiscal year 2017, the System adopted the provisions of GASB Statement No. 74 and revised its accounting methodology with regard to the presentation of SEAD-Active, and began reporting it as a proprietary fund. In previous years it was reported as a fiduciary fund. Additional years will be displayed as they become available. \n \n161 \n \n Statistical Section \nSchedule of Membership State Employees' Assurance Department Active Members Fund \n \nFiscal Year \n2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 \n \nCovered Lives \n69,745 62,305 55,412 49,212 43,127 38,711 35,142 31,869 28,873 26,032 \n \n162 \n \n Statistical Data at June 30, 2018 \n \nSystem ERS \nPSERS GJRS LRS GDCP SCJRF \n \nNet Position $13.5 billion \n \nEmployer and Nonemployer Contributions \nOld Plan: 19.94% New Plan: 24.69% \nGSEPS 21.66% ($652 mil) \n \nEmployee Contributions \nOld Plan: 6% (with 4.75% pickup) \nNew Plan: 1.25% GSEPS: 1.25% \n($37 mil) \n \nActive Members \nOld Plan: (0.08%) 47 New Plan: (42.80%) 25,858 GSEPS: (57.12%) 34,501 \nTotal: 60,406 \n \n$914 million $467 million $34 million \n \n$29.3 million \n7.17% ($6.6 million) \n0% (None) \n \n$36 yr prior July 1, 2012 $90 yr after July 1, 2012 ($2.2 million) \n7.5% +2.5% Spousal \n($4.9 million) \n8.5% (with 4.75% pickup) \n($323 thousand) \n \n34,956 527 222 \n \nInactives 58,332 \n48,353 61 158 \n \nRetirees Total: 50,863 Service: 39,013 Beneficiary: 5,790 Disability: 5,442 Inv. Sep.: 467 Law. Enf.: 151 \n18,492 \n358 \n267 \n \n$114.6 million \n \nNone \n \n7.5% ($14.6 million) \n \n13,385 \n \n108,493 \n \n0 \n \nAnnual Payment $1.4 billion \n$62 million \n$25 million $1.8 million \nN/A \n \n$6 thousand $890 thousand \n \nNone \n \nNone \n \nNone \n \n12 \n \n$890 thousand \n \nAverage Monthly Benefit $2,245 \n$280 \n$5,881 $548 N/A $5,558 \n \n163 \n \nStatistical Section \n \nDARF SEAD GMPF \n \n$2 thousand \n \n$46 thousand \n \nNone \n \n$1.2 billion \n \nNew Plan: 0.25% \n \n$0 \n \nOld Plan: 0.50% \n \n($3.6 million) \n \n$24 million \n \n$2.4 million \n \nNone \n \nNone \nNo. Insured: 26,032 \n13,896 \n \nNone 947 None \n \n4 \n \n$46 thousand \n \n$926 \n \nNo. Insured: 42,654 \n \nNo. of Claims: 1,120 Average Claim: \n \nAmt. Pd: $38.8 mil \n \n$34,653 \n \n1,076 \n \n$1.1 million \n \n$91 \n \n "},{"id":"dlg_ggpd_y-ga-be400-b-pa1-b2017-belec-p-btext","title":"Comprehensive annual financial report, 2017 June 30","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":null,"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Employees' Retirement System"],"dc_date":["2017-06-30"],"dcterms_description":["Annual report of the Employees' Retirement System of Georgia."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. Employees' Retirement System"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Employees' Retirement System of Georgia"],"dcterms_title":["Comprehensive annual financial report, 2017 June 30"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-be400-b-pa1-b2017-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-be400-b-pa1-b2017-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["annual reports"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"ERS \n \nGMPF \n \nGJRS \n \nERSGA \n \nLRS \n \nPSR \n \nGDCP \n \nPSERS \n \nEmployees' Retirement System of Georgia \nComprehensive Annual Financial Report \nFiscal Year Ended June 30, 2017 \nA component unit of the State of Georgia \n \n2017 \n \n Our Mission \nOur mission is to be the guardian of the State of Georgia's retirement plans and promote a dignified retirement for the members, retirees, and their beneficiaries. \nOur vision is to demonstrate an unwavering commitment to delivering accurate and timely retirement benefits utilizing a knowledgeable staff and state-of-the-art technology to best serve the retirement needs of current and future members. \nOur Values \nOur Core Values are: \nIntegrity Customer Service Operational Excellence Continuous Improvement and Innovation \n \nE RSGA \n \nServing those who serve Georgia \n \nEmployees' Retirement System of Georgia \n \n Introductory Section Employees' Retirement System of Georgia \nComprehensive Annual Financial Report \n \nFiscal Year Ended June 30, 2017 \nPrepared by the Financial Services Division \nJames A. Potvin Executive Director \n \nERS \n \nGMPF \n \nGJRS \n \nERSGA \n \nLRS \n \nPSR \n \nGDCP \n \nPSERS \n \nA component unit of the State of Georgia \n \n Table of Contents \n \nIntroductory Section \n \nInvestment Section \n \nBoards of Trustees \n \n4 \n \nInvestment Overview \n \n79 \n \nLetter of Transmittal \n \n5 \n \nPooled Investment Fund/Rates of Return \n \n80 \n \nCertificate of Achievement for Excellence in Financial \n \n8 \n \nAsset Allocation at Fair Value/Investment Summary \n \n81 \n \nReporting \n \nSchedule of Fees and Commissions \n \n82 \n \nPPCC Recognition Award for Funding \n \n9 \n \nTwenty Largest Equity Holdings \n \n83 \n \nAdministrative Staff and Organization \n \n10 \n \nFixed Income Holdings \n \n84 \n \nOrganizational Chart \n \n11 \n \nFinancial Section \n \nIndependent Auditors' Report \n \n13 \n \nManagement's Discussion and Analysis (Unaudited) \n \n15 \n \nBasic Financial Statements: \n \nCombining Statement of Fiduciary Net Position \n \n23 \n \nas of June 30, 2017 \n \nDefined Benefit Plans-Combining Statement of \n \n24 \n \nFiduciary Net Position as of June 30, 2017 \n \nCombining Statement of Changes in Fiduciary Net \n \n25 \n \nPosition for the Year Ended June 30, 2017 \n \nDefined Benefit Plans-Combining Statement of \n \n26 \n \nChanges in Fiduciary Net Position for the Year Ended \n \nJune 30, 2017 \n \nStatement of Net Position-State Employees' Assurance 27 \n \nDepartment Active Members Fund \n \nStatement of Revenues, Expenses, and Changes in 28 \n \nNet Position-State Employees' Assurance \n \nDepartment Active Members Fund \n \nStatement of Cash Flows-State Employees' Assurance 29 \n \nDepartment Active Members Fund \n \nNotes to Financial Statements \n \n30 \n \nRequired Supplementary Information (Unaudited): \n \nDefined Benefit Plans: \n \nSchedules of Employers' and Nonemployers' \n \n62 \n \nContributions \n \nSchedules of Employers' and Nonemployers' Net \n \n64 \n \nPension/OPEB Liability and Related Ratios \n \nSchedules of Changes in Employers' and \n \n66 \n \nNonemployers' Net Pension/OPEB Liability \n \nSchedule of Investment Returns \n \n72 \n \nNotes to Required Supplementary Information (Unaudited) 73 \n \nAdditional Information: \n \nStatement of Changes in Assets and Liabilities- \n \n75 \n \nSurvivors Benefit Fund \n \nSchedule of Administrative Expenses-Contributions \n \n76 \n \nand Expenses \n \nSchedule of Investment Expenses \n \n77 \n \nActuarial Section \n \nActuary's Certification Letters \n \n86 \n \nSummary of Plan Provisions \n \n97 \n \nSummary of Actuarial Assumptions \n \n99 \n \nActive Members \n \n110 \n \nMember and Employer Contribution Rates \n \n112 \n \nDefined Benefit Plans-Schedules of Funding Progress \n \n114 \n \nSchedule of Retirees Added to and Removed from Rolls 116 \n \nAnalysis of Change in Unfunded Accrued Liability (UAL) 118 \n \nSolvency Test Results \n \n121 \n \nStatistical Section \n \nIntroduction \n \n124 \n \nAdditions by Source-Contribution/Investment Income \n \n125 \n \nDeductions by Type \n \n128 \n \nChanges in Fiduciary Net Position \n \n131 \n \nNumber of Retirees \n \n133 \n \nAverage Monthly Payments to Retirees \n \n134 \n \nAnnual Benefit \n \n135 \n \nWithdrawal Statistics \n \n136 \n \nAverage Monthly Benefit Payment for New Retirees \n \n137 \n \nRetired Members by Retirement Type \n \n142 \n \nRetired Members by Optional Form of Benefit \n \n144 \n \nTop Participatory Employers \n \n147 \n \nSchedule of Revenue and Expenses-State Employees' 149 \n \nAssurance Department Active Members Fund \n \nSchedule of Membership-State Employees' \n \n150 \n \nAssurance Department Active Members Fund \n \nStatistical Data at June 30, 2017 \n \n151 \n \n Introductory Section \n \nERS \n \nGMPF \n \nGJRS \n \nERSGA \n \nLRS \n \nPSR \n \nGDCP \n \nPSERS \n \nE RSGA \n \nServing those who serve Georgia \n \nEmployees' Retirement System of Georgia \n \n Boards of Trustees \n \nIntroductory Section \n \nEmployees' Retirement System, Legislative Retirement System, Georgia Defined Contribution Plan, and Georgia Military Pension Fund \n \nLonice Barrett Chair \n \nEli P. Niepoky Vice-Chair \n \nHarold Reheis \n \nFrank F. Thach, Jr. \n \nSteven N. McCoy \n \nGreg S. Griffin \n \nShawn Ryan \n \nPublic School Employees Retirement System* State Employees' Assurance Department** \n \nMichael Lowe \n \nRichard Taylor \n \nMark Butler \n \nGeorgia Judicial Retirement System* \n \nVacant \n \nEllen S. Golden \n \nRon Mullins \n \nE. Trenton Brown III \n \n*The PSERS and GJRS boards are comprised of the members of the ERS board and additional members shown under each plan. \n**SEAD -- ERS Board Members Greg S. Griffin, Steven N. McCoy, Lonice Barrett, and Shawn Ryan serve in addition to the two members shown above. 4 \n \n Introductory Section \n \nLetter of Transmittal \n \nE RSGA \n \nServing those who serve Georgia \n \nEmployees' Retirement System of Georgia \n \nTwo Northside 75 Atlanta, GA 30318 \n \nDecember 21, 2017 \n \nI am pleased to present the Comprehensive Annual Financial Report for the fiscal year ended June 30, 2017 of the retirement systems and programs administered by the Employees' Retirement System of Georgia (the System). The management of the System is responsible for the accuracy, completeness and fairness of the presentation, including all disclosures. It is to the best of our knowledge and belief that the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the System. \nProfile of the System \nThe System was established in 1949 by an Act of the Georgia General Assembly to provide benefits for all State employees. Plans administered by the System include the Employees' Retirement System (ERS), the Legislative Retirement System (LRS) established in 1979, the Public School Employees Retirement System (PSERS) established in 1969, the Georgia Defined Contribution Plan (GDCP) established in 1992, the Georgia Judicial Retirement System (GJRS) established in 1998, and the Georgia Military Pension Fund (GMPF) established in 2002. In addition, the System is responsible for administering a Group Term Life Insurance Plan (SEAD), the 457 Plan established in 1974 and the 401(k) Plan established in 1994. A summary of each plan can be found on pages 30 through 39 of this report. The investments of all plans are pooled together into one fund except for the three defined contribution (DC) plans, which are maintained individually. \nThe ERS, LRS, GDCP, GMPF, 401(k) and 457 plans are governed by a 7-member Board of Trustees (Board) made up of 3 ex-officio members, 1 governor-appointed member, and 3 Board-appointed members. PSERS has the same Board as ERS with 2 additional governor-appointed members. GJRS has the same Board as ERS with 3 additional governorappointed members. \nAs of June 30, 2017, the System's defined benefit (DB) plans served a total of 111,036 active members and 69,351 retirees/ beneficiaries from 707 employers around the state. There \n \nwere 61,407 participants in the 401(k) plan with a total investment balance of $837 million. The 457 plan had 12,899 participants with a total investment balance of $597 million. There are 475 participating employers from around the state in the 457 and 401(k) plans. \nLegislation \nIn the 2017 session, only one Act was passed by the General Assembly and signed by the Governor, which impacts the System: \nAct 253 adds a Roth contribution option to both the state's 401(k) and 457 plans, collectively known as Peach State Reserves (PSR). PSR members will be able to contribute after-tax dollars to the PSR plans, and upon meeting certain requirements be later able to withdraw their contributions with no income tax due on any earnings they receive on those contributions. The new provision will be available to PSR members beginning January 1, 2018. \nSummary of Financial Information \nThe management of the System is charged with the responsibility of maintaining a sound system of internal accounting controls. The objectives of such a system are to provide management with reasonable assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorizations, and that they are recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. The concept of reasonable assurance recognizes that first, the cost of a control should not exceed the benefits likely to be derived, and second, the evaluation of the cost and benefits requires estimates and judgments by management. \nEven 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. \n \n5 \n \n(continued) \n \n Introductory Section \n \nLetter of Transmittal \nPlease refer to the Management's Discussion and Analysis starting on page 15 of this report for an overview of the financial status of the System, including a summary of the System's Fiduciary Net Position, Changes in Fiduciary Net Position, and Asset Allocations. \nFor fiscal year 2017, the pooled investment fund generated a return of 12.4%. The fund continues to invest in a mix of highquality bonds and stocks which allows the System to participate in rising markets while controlling the downside risks. This has proven to be a successful strategy for other markets and for the System. For further information on investments of the pooled fund, please refer to the Investment Section on pages 79 through 84 of this report. \nThe objective of the System's pension trust funds is to meet long-term benefit promises through contributions that remain approximately level as a percent of member payroll over time while maintaining an actuarially sound system. Historical information relating to the progress in meeting this objective is presented on pages 114 and 115. The latest actuarial valuations as of June 30, 2016 showed the funded ratio of four of the five defined benefit plans increasing. The following table shows the change in funding percentage for each of the pension systems: \n \nERS PSERS LRS GJRS GMPF \n \nFY2015 74.1% 83.2% \n123.1% 113.2% 46.7% \n \nFY2016 74.7% 84.4% \n126.0% 111.1% 48.2% \n \nFurther information regarding the funding condition of the pension plans can be found in the Actuarial Section of this report, beginning on page 86. \nExcellence in Financial Reporting \nFor the seventh consecutive year, the Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Employees' Retirement System of Georgia for its comprehensive annual financial report for the fiscal year ended June 30, 2016. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive \n \nannual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. \nA 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. \nInitiatives \nInformation Technology Cyber security was a significant factor this year, and several major initiatives in the IT group were focused on this area, as well as implementation of new infrastructure components. ERS implemented email SSN filtering, helping guard against data leakage of sensitive information. We also enabled email anti-fraud and anti-phishing link protection technology on our mail services. Additionally, ERS performed multiple vendorled penetration tests and remediated all technical findings. ERS implemented multiple end-user training and education initiatives, including a monthly cyber-security newsletter and training from the SANS Institute, Securing the Human. \nOn the technical/infrastructure side, ERS accomplished several significant projects, most notably the installation of a new Storage Area Network, increasing total available storage to 128 terabytes (TB). The new SAN has 21 TB of solid-state flash technologies and increased fiber throughput, substantially improving overall performance. ERS also deployed nextgeneration server technology to support the virtual server farm environment at our disaster recovery (DR) facility, improving our overall DR capabilities. \nRetirement Readiness In 2017, ERS distributed our second annual integrated benefit statement. The statement is designed to provide customized comprehensive (to the extent supported by the data ERS possesses) retirement readiness information to our members, letting them know whether or not they appear to be on track financially for a secure retirement. We have set a basic income replacement target of 80% of their pre-retirement income in their first year of retirement, assuming retirement at age 65 and using their pension plan, Peach State Reserves plans, and Social Security as their sources of income. We found that approximately 75% of our current benefit tier (GSEPS) population is on track to meet the income replacement goal. \n \n6 \n \n(continued) \n \n Introductory Section \n \nLetter of Transmittal \nWhile we have focused on our members' savings and asset accumulation habits, we realize that we must also provide them with options for receiving income from the plans in retirement. The pension plans, of course, are designed to provide monthly income for life. However, the members must also be prepared to utilize the savings they have accumulated in the Peach State Reserves plans. To that end, we have added several \"managed income\" tools for them to use, including a robust retirement income modeling tool and a service which will provide customized advice from a financial advisor to help them manage their investments and withdrawals in retirement. In addition, we have begun to explore options that may be included in our plan design that will allow members to convert some or all of their Peach State Reserves balances into a monthly lifetime income stream, similar to their pension benefits. \nOperations In July and August of 2016, ERS distributed cost-of-living adjustments to most retirees and payees of the Judicial Retirement System and the Public School Employees Retirement System, as well as one-time \"13th check\" payments to retirees and payees of the Employees' Retirement System and the Legislative Retirement System. These payments and benefit increases represent the first post-retirement adjustments of any kind granted to any of our retirees since the fall of 2009. \nIn the summer and fall of 2016, we partnered with the Department of Community Health (DCH) on a retiree health benefit initiative. ERS has for many years worked with DCH to deduct retiree health premiums from the pension checks and remit the premiums back to DCH. Starting in early 2017, the method used by DCH to determine premium subsidies \n \nchanged significantly, and ERS is now regularly providing service data to DCH to assist them in that effort. \nFinally, ERS completed a number of system enhancements to add functionality and / or improve the user (member) experience. Among the most significant were the implementation of the calculation of new optional forms of benefit for JRS members, and the implementation of Single Sign-On with our Peach State Reserves administrator, allowing members to access ERS and PSR web sites using only a single authentication process. Acknowledgements This report reflects the combined effort of our staff under the Board's leadership. Copies of this report, along with other valuable plan information, can be downloaded from the System's website. \nI would like to express my sincere thanks to the Boards of Trustees for their leadership and support. Many thanks are also extended to the offices of the Governor, Lieutenant Governor, members of the House and Senate Retirement Committees and their staff, members of the House and Senate, and the department officials whose support and assistance have helped ERS accomplish its mission over the years. \nRespectfully submitted, \nJames A. Potvin, Executive Director Employees' Retirement System of Georgia \n \n7 \n \n Introductory Section \n8 \n \n Introductory Section \nP P CC \nPublic Pension Coordinating Council Recognition Award for Funding \n2017 \nPresented to \nEmployees' Retirement System of Georgia \nIn recognition of meeting professional standards for plan funding as \nset forth in the Public Pension Standards. \nPresented by the Public Pension Coordinating Council, a confederation of National Association of State Retirement Administrators (NASRA) \nNational Conference on Public Employee Retirement Systems (NCPERS) National Council on Teacher Retirement (NCTR) \nAlan H. Winkle Program Administrator \n9 \n \n Introductory Section \nAdministrative Staff and Organization \n \nJames A. Potvin Executive Director \n \nAngie Surface Deputy Director \n \nCharles W. Cary, Jr. CIO - Investment Services \n \nLaura L. Lanier Controller \n \nChris Hackett Director \nInformation Technology \n \nNicole Paisant Director \nHuman Resources \n \nSusan Anderson Chief Operating \nOfficer \n \nCarolyn Kaplan Director \nFinancial Management Quality Assurance \n \nKelly Moody Director \nLegislative Affairs \n \nConsulting Services \nCavanaugh Macdonald Consulting, LLC - Actuary KPMG LLP - Auditor JPMorgan Chase Bank, N. A. - Defined Contribution \nCustodian Alight Solutions (formerly Aon Hewitt) - Defined \nContribution Consultant and Administrator \nInvestment Advisors* \nAlbritton Capital Management Baillie Gifford Overseas Limited Barrow, Hanley, Mewhinney \u0026 Strauss Cooke \u0026 Bieler Fisher Investments Mondrian Investment Partners Limited Sands Capital Management \n \nMedical Advisors \nHarold E. Sours, M.D., Atlanta, GA G. Lee Cross, M.D., Atlanta, GA Douglas Smith, M.D., Smyrna, GA William H. Biggers, M.D., Atlanta, GA Pedro F. Garcia, M.D., Atlanta, GA H. Rudolph Warren, M.D., Dunwoody, GA Quinton Pirkle, M.D., Atlanta, GA Marvin Bittinger, M.D., Gainesville, GA Joseph S. Wilkes, M.D., Sandy Springs, GA \n \n*See page 82 in the Investment Section for a summary of fees paid to Investment Advisors. \n \n10 \n \n Organizational Chart \n \nIntroductory Section \n \nBoard of Trustees \n \nExecutive Director \n \nExecutive Support \n \nHuman Resources \n \nDeputy Director \n \nInvestment Services Division \n \nFinancial Services Division \n \nInformation Technology \nDivision \n \nChief Operating \nOfficer \n \nLegislative Affairs \n \nFinancial Management \nDivision \n \nQuality Assurance \nDivision \n \nPeach State Reserves \n \nOffice \nAdministration \n \nMember Services Division \n \n11 \n \n Financial Section \n \nIndependent Auditors' Report \n \nKPMG LLP Suite 2000 303 Peachtree Street, NE Atlanta, GA 30308-3210 \n \nThe Board of Trustees Employees' Retirement System of Georgia: \n \nReport on the Financial Statements We have audited the accompanying financial statements of the fiduciary activities and proprietary activities of the Employees' Retirement System of Georgia (the System), a component unit of the State of Georgia, as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise the System's basic financial statements as listed in the table of contents. \nManagement's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \nAuditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. \nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies \n \nused and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nOpinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the fiduciary activities and proprietary activities of the System as of June 30, 2017, and the respective changes in financial position and where applicable, cash flows thereof, for the year then ended in accordance with U.S. generally accepted accounting principles. \nEmphasis of Matter As discussed in note 3(h) to the basic financial statements, the System adopted, in 2017, Governmental Accounting Standards Board Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans (OPEB). Our opinion is not modified with respect to this matter. \nReport on Summarized Comparative Information We have previously audited the System's 2016 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated September 30, 2016. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2016 is consistent, in all material respects, with the audited financial statements from which it has been derived. \nOther Matters Required Supplementary Information U.S. generally accepted accounting principles require that the management's discussion and analysis, schedules of employers' and nonemployers' contributions, schedules of employers' and nonemployers' net pension/OPEB liability and related ratios, schedules of changes in employers' and nonemployers' net pension/OPEB liability, and schedule of investment returns, on pages 1522 and 6272 be presented to supplement the basic \n \n(continued) 13 \n \n Financial Section \n \nfinancial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \nSupplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the System's basic financial statements. The Survivors Benefit Fund statement of changes in assets and liabilities, and schedules of administrative expenses - contributions and expenses and investment expenses, and introductory, investment, actuarial, and statistical sections are presented for purposes of additional analysis and are not a required part of the basic financial statements. \n \nexpenses  contributions and expenses and investment expenses are fairly stated in all material respects in relation to the basic financial statements as a whole. \nThe introductory, investment, actuarial, and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide an assurance on them. \nOther Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 4, 2017 on our consideration of the System's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the System's internal control over financial reporting and compliance. \n \nThe Survivors Benefit Fund statement of changes in assets and liabilities, and schedules of administrative expenses  contributions and expenses and investment expenses are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Survivors Benefit Fund statement of changes in assets and liabilities, and schedules of administrative \n \nOctober 4, 2017, except for the introductory, investment, actuarial and statistical sections and the schedule of investment expenses which are as of December 21, 2017 \n \n14 \n \n Financial Section \n \nERS \n \nGMPF \n \nGJRS \n \nERSGA \n \nLRS \n \nPSR \n \nGDCP \n \nPSERS \n \nE RSGA \n \nServing those who serve Georgia \n \nEmployees' Retirement System of Georgia \n \n12 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) June 30, 2017 \nThis section provides a discussion and analysis of the financial performance of the Employees' Retirement System of Georgia (the System) for the year ended June 30, 2017. The discussion and analysis of the System's financial performance is within the context of the accompanying basic financial statements, notes to the financial statements, required supplementary schedules, and additional information following this section. \nThe System is responsible for administering a cost-sharing, multiple-employer defined benefit pension plan for various employer agencies of Georgia, along with six other defined benefit pension plans, a defined benefit OPEB plan, three defined contribution plans, and an agency fund, which comprise the fiduciary funds. The System is also responsible for administering an enterprise fund, which comprises the proprietary fund. \nThe defined benefit pension plans include:  Employees' Retirement System (ERS)  Public School Employees Retirement System (PSERS)  Legislative Retirement System (LRS)  Georgia Judicial Retirement System (GJRS)  Georgia Military Pension Fund (GMPF)  Superior Court Judges Retirement Fund (SCJRF)  District Attorneys Retirement Fund (DARF) \nThe defined benefit OPEB plan consists of the State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEAD-OPEB). \nThe defined contribution retirement plans include:  Georgia Defined Contribution Plan (GDCP)  State of Georgia Employees' Qualified Trust Deferred Compensation Plan (401(k) Plan)  State of Georgia Employees' Deferred Compensation Plan (457 Plan) \nThe agency fund consists of the Survivors Benefit Fund (SBF). \nThe enterprise fund consists of the State Employees' Assurance Department Active Members Fund (SEAD-Active). \nOverview of Financial Statements \nIn fiscal year 2017, the System adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans (OPEB), and revised its accounting methodology with regard to the presentation of its group term life insurance plan for active members, SEAD-Active, and its custodial fund for maintaining group term life insurance coverage for members of SEAD-Active and SEAD-OPEB, the SBF. Prior year comparative totals have been restated to reflect this change. Additional discussion of the GASB Statement No. 74 implementation and the restatement of previously reported amounts can be found in note (3)(h) in the notes to the financial statements. \nA fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The System administers two categories of funds: fiduciary funds and a proprietary fund. Information related to the financial statements of the funds is presented in the notes to the financial statements. \nFiduciary funds are used to account for resources held for the benefit of parties outside of the System. The primary focus of the System's fiduciary funds is the accumulation of resources for and the payment of pension and OPEB benefits. The System maintains four types of fiduciary funds: (1) defined benefit pension trust funds which are used to report resources held in trust for pensions for retirees and beneficiaries covered by ERS, PSERS, LRS, GJRS, GMPF, SCJRF, and DARF, (2) a defined benefit OPEB trust fund which is used to report resources held in trust for other postemployment benefits of retirees and beneficiaries of SEAD-OPEB, (3) defined contribution pension trust funds which are used to accumulate contributions and earnings in the accounts of participants \n(continued) 15 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \ncovered by GDCP, the 401(k) Plan, and the 457 Plan, and (4) an agency fund which is used to report resources held by the SBF in a custodial capacity for other plans. \nProprietary funds, which include enterprise and internal services funds, are used to account for the System's activities that are similar to private sector businesses. The System maintains one proprietary fund, an enterprise fund. The primary focus of the System's enterprise fund is the accumulation of resources for, and payment of, group term life insurance benefits for active members of ERS, LRS, and GJRS covered by SEAD-Active. \nThe basic financial statements comprise statements for both fiduciary and proprietary funds. The fiduciary fund financial statements include (1) Combining Statement of Fiduciary Net Position, (2) Defined Benefit Plans  Combining Statement of Fiduciary Net Position, (3) Combining Statement of Changes in Fiduciary Net Position, and (4) Defined Benefit Plans  Combining Statement of Changes in Fiduciary Net Position. The proprietary fund financial statements include (1) Statement of Net Position, (2) Statement of Revenues, Expenses, and Changes in Net Position, and (3) Statement of Cash Flows. \nIn addition, the System presents four types of required supplementary schedules, which provide historical trend information about the plan. The four schedules are (1) Schedules of Employers' and Nonemployers' Contributions, (2) Schedules of Employers' and Nonemployers' Net Pension/OPEB Liability and Related Ratios, (3) Schedules of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability, and (4) Schedule of Investment Returns. The System also includes in this report additional information to supplement the financial statements. \nThe System prepares its financial statements on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles as promulgated by the GASB. These statements provide information about the System's overall financial status. \nFinancial Highlights \nThe highlights of the fiduciary funds of the System are as follows:  The net position of the fiduciary funds increased by $1.1 billion, or 7.0%, from $16.0 billion at June 30, 2016 to $17.1 billion at June 30, 2017. The increase in net position from 2016 to 2017 was primarily due to the increase in equity markets. \n For the year ended June 30, 2017, the total additions to net position were $2.8 billion compared to $1.0 billion for the year ended June 30, 2016. For the year ended June 30, 2017, the additions consisted of employer, nonemployer contributing entities (nonemployer), and member contributions totaling $868.8 million, insurance premiums of $3.8 million, net investment income of $1.9 billion, and participant fees of $1.6 million. \n Net investment income of $1.9 billion in 2017 (comprising interest and dividend income, the change in fair value of investments, and other, reduced by investment expenses) represents a $1.7 billion increase, compared to the net investment income of $188.0 million for the year ended June 30, 2016. The net investment income was higher in 2017 compared to 2016 due primarily to higher returns in equity markets. \n The total deductions from net position were $1.6 billion for the years ended June 30, 2017 and 2016. For the year ended June 30, 2017, the deductions consisted of benefit payments of $1.6 billion, refunds of $21.8 million, death benefits related to OPEB of $36.0 million, and administrative expenses of $16.5 million. \n Benefit payments paid to retirees and beneficiaries had an increase of $55.8 million, or 3.7%, from $1.5 billion in 2016 to $1.6 billion in 2017, resulting primarily from an increase in the number of retirees and beneficiaries receiving benefits in 2017. \n(continued) 16 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \nThe highlights of the proprietary fund of the System are as follows:  The net position of the proprietary fund increased by $26.3 million to $267.3 million at June 30, 2017 compared to $241.0 million at June 30, 2016. The increase in net position from 2016 to 2017 was primarily due to the increase in equity markets. \n For the year ended June 30, 2017, total operating loss was $3.5 million compared to $2.8 million for the year ended June 30, 2016. The increase relates primarily to the increase in the number of active members who received death benefits during the year. \n Investment income allocated from the pooled investment fund of $29.8 million in 2017 represents a $26.7 million increase, compared to investment income allocated from the pooled investment fund of $3.1 million for the year ended June 30, 2016. The investment income allocated from the pooled investment fund was higher in 2017 compared to 2016 due primarily to higher returns in equity markets. \nDescription of the Financial Statements \nFiduciary Funds \nThe Combining Statement of Fiduciary Net Position is the statement of financial position presenting information that includes the fiduciary funds' assets and liabilities, with the balance representing the Net Position Restricted for Pensions and OPEB. The investments of the funds in this statement are presented at fair value. This statement is presented on page 23. \nThe Combining Statement of Changes in Fiduciary Net Position reports how the fiduciary funds' net position changed during the fiscal year. The additions include contributions to the retirement plans from employers, nonemployers, and members; group term life insurance premiums; participant fees; and net investment income, which includes interest and dividends and the net increase in the fair value of investments, net of investment expenses. The deductions include benefit payments, life insurance death benefit payments, refunds of member contributions and interest, and administrative expenses. This statement is presented on page 25. \nThe Defined Benefit Plans' Combining Statement of Fiduciary Net Position and the Combining Statement of Changes in Fiduciary Net Position present the financial position and changes in financial position for each of the defined benefit plans administered by the System. These statements are on pages 24 and 26, respectively. \nProprietary Funds \nThe Statement of Net Position is the statement of financial position presenting information that includes the assets and liabilities, with the balance representing the net position. This statement is presented on page 27. \nThe Statement of Revenues, Expenses, and Changes in Net Position distinguishes operating revenues and expenses from nonoperating items. Principal operating revenues result from insurance premiums from members, while operating expenses result from death benefit payments and administrative expenses. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. This statement is presented on page 28. \nThe Statement of Cash Flows provides relevant information about cash receipts and cash payments during the year. When used in conjunction with related disclosures and information in the other financial statements, the statement provides relevant information about the plan's ability to generate future net cash flows, the plan's ability to meet its obligations as they come due, and presents the reasons for differences between operating income and associated cash receipts and payments. This statement is presented on page 29. \nNotes to Financial Statements are presented to provide the information necessary for a full understanding of the financial statements. The notes to the financial statements begin on page 30. \n(continued) 17 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \nRequired Supplementary Information begins on page 62. The required schedules are discussed as follows:  The Schedules of Employers' and Nonemployers' Contributions presents the required contributions and the percent of required contributions actually contributed.  The Schedules of Employers' and Nonemployers' Net Pension/OPEB Liability and Related Ratios presents the components of the net pension/OPEB liability as of the fiscal year end and the fiduciary net position as a percentage of the total pension/OPEB liability as of that date. This trend information will be accumulated to display a 10-year presentation.  The Schedules of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability presents total net pension/OPEB liability and is measured as total pension/OPEB liability less the amount of the fiduciary net position. This trend information will be accumulated to display a 10-year presentation.  The Schedule of Investment Returns presents historical trend information about the annual money-weighted rate of return on plan investments, net of plan investment expense. This trend information will be accumulated to display a 10-year presentation. \nThree of the required schedules above, the Schedules of Employers' and Nonemployers' Contributions, the Schedules of Employers' and Nonemployers' Net Pension/OPEB Liability and Related Ratios, and the Schedules of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability are applicable to five of the defined benefit pension plans (ERS, PSERS, LRS, GJRS, and GMPF) and the defined benefit OPEB plan (SEAD-OPEB). Notes to Required Supplementary Information are presented to provide the information necessary for a full understanding of the supplementary schedules. The notes to required supplementary information begin on page 73. Additional information is presented, beginning on page 75, and includes the Statement of Changes in Assets and Liabilities for the Survivors Benefit Fund which presents additions to and deductions from the fund, and the Schedule of Administrative Expenses  Contributions and Expenses which presents the expenses incurred in the administration of the plans and funds, and the contributions from each plan and fund to provide for these expenses. \n(continued) 18 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) Financial Analysis of the System \nA summary of the System's net position of the fiduciary funds at June 30, 2017 is as follows (dollars in thousands): \n \nAssets: Cash, cash equivalents, and receivables Investments Capital assets, net Total assets \n \nNet Position \n \n2016, as \n \n2017 \n \nrestated \n \n$ \n \n330,585 \n \n17,253,626 \n \n6,904 \n \n17,591,115 \n \n360,283 16,057,818 \n6,943 16,425,044 \n \nLiabilities: \n \nDue to brokers and accounts payable \n \n41,428 \n \nDue to other funds/plans and participating systems \n \n403,237 \n \nTotal liabilities \n \n444,665 \n \nNet position \n \n$ 17,146,450 \n \n43,729 361,912 405,641 16,019,403 \n \nAmount change \n(29,698) 1,195,808) \n(39) 1,166,071) \n(2,301) 41,325) 39,024) 1,127,047) \n \nPercentage change \n(8.2) % 7.4) (0.6) 7.1) \n(5.3) 11.4) 9.6) 7.0) ) \n \nA summary of the System's net position of the proprietary fund at June 30, 2017 is as follows (dollars in thousands): \n \nAssets: Cash, cash equivalents, and receivables Investments Total assets \nLiabilities: Accounts payable and other Net position \n \nNet position \n \n2017 \n \n2016 \n \nAmount change \n \nPercentage change \n \n$ \n \n127 \n \n267,194 \n \n267,321 \n \n94 240,948 241,042 \n \n33) 26,246) 26,279) \n \n35.1) % 10.9) 10.9) \n \n35 \n \n$ \n \n267,286 \n \n57 240,985 \n \n(22) 26,301) \n \n(38.6) 10.9) ) \n \n(continued) 19 \n \n Financial Section \n \nManagement's Discussion and Analysis (Unaudited) \nThe following table presents the investment allocation at June 30, 2017 and 2016: \n \nAsset allocation at June 30 (in percentages): Equities: Domestic International Private equity Domestic obligations: U.S. Treasuries Corporate and other bonds International obligations: Governments Corporates Mutual funds Commingled funds \nAsset allocation at June 30 (in thousands): Equities: Domestic International Private equity Domestic obligations: U.S. Treasuries Corporate and other bonds International obligations: Governments Corporates Mutual funds Commingled funds \n \n2017 \n47.8 % 16.1 \n0.8 \n14.6 10.9 \n0.5 1.1 -- 8.2 \n \n2016 \n47.8 % 14.5 \n0.6 \n13.8 14.1 \n0.5 1.1 -- 7.6 \n \n$ 8,249,643 2,780,668 134,213 \n \n$ 7,673,204 2,332,236 93,885 \n \n2,516,114 1,882,175 \n \n2,223,199 2,257,447 \n \n76,935 192,589 \n5,601 1,415,688 $ 17,253,626 \n \n77,266 174,512 \n5,084 1,220,985 $ 16,057,818 \n \nThe total investment portfolio increased by $1.2 billion from 2016, which is primarily due to the increase in equity markets. \nInvestment performance is calculated using a time-weighted rate of return using the Daily Valuation Method. The time-weighted rate of return for the fiscal year ended June 30, 2017 was 12.4% with a 19.2% return for equities, a 7.5% return for private equity (inception date of October 3, 2013), and a (1.0)% return for fixed income. The five-year annualized rate of return at June 30, 2017 was 9.5%, with a 12.8% return for equities and a 1.8% return for fixed income. \n \n(continued) 20 \n \n Financial Section \n \nManagement's Discussion and Analysis (Unaudited) \nA money-weighted return is weighted by the amount of dollars in the fund at the beginning and end of the performance period. A moneyweighted return is highly influenced by the timing of cash flows into and out of the fund and is a better measure of an entity or person who controls the cash flows into or out of the fund. The nondiscretionary cash flows for the plan, primarily contributions and benefit payments, have a considerable impact on the money-weighted returns of the portfolio. The money-weighted rate of return for the fiscal year ended June 30, 2017 was 2.9%, compared to (7.2)% for the fiscal year ended June 30, 2016. \nA summary of the changes in the System's net position of the fiduciary funds for the year ended June 30, 2017 is as follows (dollars in thousands): \n \nAdditions: Employer contributions Nonemployer contributions Member contributions Participant fees Insurance premiums Net investment income Other Total additions \nDeductions: Benefit payments Refunds Death benefits Administrative expenses Total deductions Net increase (decrease) in net position \n \nChanges in Net Position \n \n2016, \n \n2017 \n \nas restated \n \nAmount change \n \nPercentage change \n \n$ 657,190 40,960 \n170,608 1,584 3,793 \n1,901,409 15 \n2,775,559 \n \n621,060 43,933 \n151,264 1,429 3,931 \n188,045 15 \n1,009,677 \n \n36,130 (2,973) 19,344 \n155 (138) 1,713,364 \n-- 1,765,882 \n \n5.8 % (6.8) 12.8 10.8 (3.5) 911.1 -- 174.9 \n \n1,574,118 21,849 36,058 16,487 \n1,648,512 $ 1,127,047 \n \n1,518,314 19,762 33,911 16,178 \n1,588,165 (578,488) \n \n55,804 2,087 2,147 309 \n60,347 1,705,535 \n \n3.7 10.6 \n6.3 1.9 3.8 294.8 \n \nAdditions  The System accumulates resources needed to fund benefit payments through contributions and returns on invested funds. In fiscal year 2017, total contributions increased $52.5 million, or 6.4%, primarily because of an increase in the number of active members coupled with modest overall salary increases. Net investment income increased by $1.7 billion, or 911.1%, due primarily to positive returns in equity markets. \nDeductions  For fiscal year 2017, total deductions increased 3.8%, primarily because of a 3.7% increase in benefit payments. Pension benefit payments increased due to an increase in the number of retirees and beneficiaries receiving benefits in 2017 and one-time payments for cost-of-living adjustments. Refunds increased by 10.6%, which was primarily due to an increase in the number of refunds processed during 2017. Death benefits increased by 6.3%, which was primarily due to an increase in the number of death claims processed during 2017. Administrative expenses increased by 1.9% over the prior year, primarily due to increases in personal services and contractual services. \n \n(continued) 21 \n \n Financial Section \n \nManagement's Discussion and Analysis (Unaudited) \nA summary of the changes in the System's net position of the proprietary fund for the year ended June 30, 2017 is as follows (dollars in thousands): \n \nOperating revenue: Insurance premiums Total operating revenue \nOperating expenses: Death benefits Administrative expenses Total operating expenses Total operating loss \nNonoperating revenue: Allocation of investment income from pooled investment fund, net Change in net position \n \nChanges in Net Position \n \n2017 \n \n2016 \n \nAmount change \n \nPercentage change \n \n$ \n \n599 \n \n611 \n \n(12) \n \n(2.0) % \n \n599 \n \n611 \n \n(12) \n \n(2.0) \n \n4,019 64 \n4,083 (3,484) \n \n3,345 67 \n3,412 (2,801) \n \n674 (3) \n671 (683) \n \n20.1 (4.5) 19.7 24.4 \n \n29,785 \n \n$ \n \n26,301 \n \n3,109 308 \n \n26,676 25,993 \n \n858.0 8,439.3 \n \nOperating and nonoperating revenue  The proprietary fund accumulates resources needed to fund death benefit payments through premiums earned and returns on invested funds. In fiscal year 2017, total premiums earned decreased $12.0 thousand, or 2%, primarily due to a decrease in the number of participating members. Allocation of investment income from the pooled investment fund, net of related expenses, increased by $26.7 million, or 858.0%, due primarily to positive returns in equity markets. \nOperating expenses  For fiscal year 2017, death benefits increased by 20.1%, which was primarily due to an increase in the number of death claims processed during 2017. Administrative expenses decreased by 4.5% over the prior year primarily due to improved administrative efficiency. \nRequests for Information \nThis financial report is designed to provide a general overview of the System's finances for all those with interest in the System's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to Employees' Retirement System of Georgia, Two Northside 75, Suite 300, Atlanta, GA 30318. \n \n22 \n \n Combining Statement of Fiduciary Net Position \nJune 30, 2017 (with comparative totals as of June 30, 2016) (In thousands) \n \nAssets Cash and cash equivalents \nReceivables: Contributions Interest and dividends Due from brokers for securities sold Other Unremitted insurance premiums \nTotal receivables \nInvestments - at fair value: Domestic obligations: U.S. Treasuries Corporate and other bonds International obligations: Governments Corporates Equities: Domestic International Private equity Mutual funds Commingled funds Equity in pooled investment fund \nTotal investments \nCapital assets, net \nTotal assets \nLiabilities \nAccounts payable and other Due to brokers for securities purchased Insurance premiums payable Due to other funds/plans Due to participating systems \nTotal liabilities \nNet position restricted for pensions and OPEB \n \nDefined Benefit Plans \n \n$ \n \n31,827 \n \nDefined Contribution Plans \n \nAgency Fund \n \nPooled Investment \nFund \n160,096 \n \nGeorgia Defined Contribution \nPlan \n24,971 \n \n401(k) Plan \n16,882 \n \n457 Plan \n1,196 \n \nSurvivors Benefit Fund \n92 \n \nEliminations  \n \n35,084 -- -- \n1,973 555 \n \n-- 43,440 10,241 \n-- -- \n \n934 \n \n2,550 \n \n339 \n \n-- \n \n359 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n519 \n \n82 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n37,612 \n \n53,681 \n \n1,293 \n \n3,069 \n \n421 \n \n-- \n \n    (555) \n(555) \n \nTotal \n2017 235,064 \n \n2016, as restated \n222,327 \n \n38,907 43,799 10,241 \n2,574 -- \n95,521 \n \n39,882 42,486 53,612 \n1,976 -- \n137,956 \n \n-- -- \n-- -- \n-- -- -- -- -- 15,531,378 \n15,531,378 6,904 \n15,607,721 \n \n2,476,243 1,836,572 \n76,935 192,589 \n8,237,632 2,779,518 \n134,213 -- -- -- \n15,773,702  \n15,947,479 \n \n24,528 -- \n627 -- -- \n25,155 \n \n$ \n \n15,582,566 \n \n1,833 11,123 \n-- -- 15,934,523 \n15,947,479 \n \n \n39,871 45,603 \n-- -- \n-- -- -- -- -- -- \n85,474  \n111,738 \n \n  \n  \n6,336 498 -- \n2,801 827,810 \n \n837,445  \n857,396 \n \n  \n  \n5,675 652  \n2,800 587,878 \n \n597,005  \n598,622 \n \n-- -- \n-- -- \n-- -- -- -- -- 135,951 \n135,951 -- \n136,043 \n \n  \n  \n   --  (15,667,329) \n(15,667,329)  \n(15,667,884) \n \n2,516,114 1,882,175 \n76,935 192,589 \n8,249,643 2,780,668 \n134,213 5,601 \n1,415,688 -- \n17,253,626 6,904 \n17,591,115 \n \n2,223,199 2,257,447 \n77,266 174,512 \n7,673,204 2,332,236 \n93,885 5,084 \n1,220,985 -- \n16,057,818 6,943 \n16,425,044 \n \n464 -- -- -- -- \n464 \n111,274 \n \n2,399     \n2,399 \n854,997 \n \n1,009     \n1,009 \n597,613 \n \n   136,043  \n136,043 \n \n \n  (555)  (15,667,329) \n(15,667,884) \n \n \n30,233 11,123 \n72 136,043 267,194 \n444,665 \n17,146,450 \n \n29,648 14,001 \n80 120,964 240,948 \n405,641 \n16,019,403 \n \n23 \n \nFinancial Section \n \nSee accompanying notes to financial statements. \n \n Financial Section \nDefined Benefit Plans  Combining Statement of Fiduciary Net Position \nJune 30, 2017 (In thousands) \n24 \n \nAssets \nCash and cash equivalents \nReceivables: Contributions Interest and dividends Due from brokers for securities sold Other Unremitted insurance premiums \nTotal receivables \nInvestments - at fair value: Domestic obligations: U.S. Treasuries Corporate and other bonds International obligations: Governments Corporates Equities: Domestic International Private equity Mutual funds Commingled funds Equity in pooled investment fund \nTotal investments \nCapital assets, net \nTotal assets \nLiabilities \nAccounts payable and other Due to brokers for securities purchased Insurance premiums payable Due to other funds/plans Due to participating systems \nTotal liabilities \nNet position restricted for pensions and OPEB \n \nEmployees' Retirement \nSystem \n \nPublic School Employees Retirement System \n \n$ \n \n30,951 \n \n3 \n \nDefined Benefit Pension Plans \n \nLegislative Retirement \nSystem \n14 \n \nGeorgia Judicial Retirement System \n579 \n \nGeorgia Military Pension Fund \n94 \n \nSuperior Court Judges \nRetirement Fund \n23 \n \nDefined Benefit OPEB Plan \n \nDistrict Attorneys Retirement \nFund \n3 \n \nState Employees' Assurance Department \nOPEB \n160 \n \nDefined Benefit Plans Total \n31,827 \n \n34,256 \n \n-- \n \n28 \n \n800 \n \n \n \n \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n1,815 \n \n156 \n \n1 \n \n1 \n \n \n \n \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n36,071 \n \n156 \n \n29 \n \n801 \n \n \n \n \n \n \n \n-- \n \n35,084 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n1,973 \n \n555 \n \n555 \n \n555 \n \n37,612 \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n \n \n-- \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n \n \n-- \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n \n \n-- \n \n13,047,409 \n \n868,952 \n \n33,039 \n \n440,443 \n \n20,682 \n \n \n \n \n \n1,120,853 \n \n15,531,378 \n \n13,047,409 \n \n868,952 \n \n33,039 \n \n440,443 \n \n20,682 \n \n \n \n \n \n1,120,853 \n \n15,531,378 \n \n6,904 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n6,904 \n \n13,121,335 \n \n869,111 \n \n33,082 \n \n441,823 \n \n20,776 \n \n23 \n \n3 \n \n1,121,568 \n \n15,607,721 \n \n22,421 \n \n977 \n \n100 \n \n630 \n \n65 \n \n17 \n \n1 \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n615 \n \n-- \n \n1 \n \n11 \n \n \n \n \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n23,036 \n \n977 \n \n101 \n \n641 \n \n65 \n \n17 \n \n1 \n \n317 \n \n24,528 \n \n-- \n \n-- \n \n \n \n627 \n \n \n \n-- \n \n \n \n-- \n \n317 \n \n25,155 \n \n$ 13,098,299 \n \n868,134 \n \n32,981 \n \n441,182 \n \n20,711 \n \n6 \n \n2 \n \n1,121,251 \n \n15,582,566 \n \nSee accompanying notes to financial statements. \n \n Combining Statement of Changes in Fiduciary Net Position \nYear ended June 30, 2017 (with comparative totals for the year ended June 30, 2016) (In thousands) \n \nAdditions: Contributions: Employer Nonemployer Member Participant fees Insurance premiums Administrative expense allotment \n \nDefined Benefit Plans \n \nPooled Investment \nFund \n \nDefined Contribution Plans \n \nGeorgia \n \nDefined \n \nContribution \n \n401(k) \n \n457 \n \nPlan \n \nPlan \n \nPlan \n \n$ \n \n620,429 \n \n40,960 \n \n43,180 \n \n-- \n \n3,793 \n \n15 \n \n \n \n \n \n36,761 \n \n \n \n \n \n \n \n-- \n \n \n \n \n \n14,921 \n \n93,608 \n \n18,899 \n \n \n \n \n \n1,584 \n \n \n \n \n \n \n \n-- \n \n \n \n \n \n \n \n-- \n \n \n \nInvestment income: Net increase (decrease) in fair value of investments Interest and dividends Other Less investment expenses Allocation of investment income \nNet investment income (loss) \nTotal additions \n \n-- -- -- (9,278) 1,763,431 \n1,754,153 \n2,462,530 \n \n1,475,241 339,807 -- (6,690) \n(1,808,358) \n \n \n \n(2,871) 1,871 \n (56)  \n(1,056) \n13,865 \n \n90,838 16 \n537 (2,620) \n-- \n88,771 \n220,724 \n \n59,625  \n610 (694) \n \n59,541 \n78,440 \n \nDeductions: Benefit payments Refunds of member contributions and interest Death benefits Administrative expenses Total deductions \nNet increase (decrease) in net position \nNet position restricted for pensions and OPEB: \nBeginning of year, as restated \nEnd of year \n \n1,479,380 10,305 36,058 11,817 \n1,537,560 924,970 \n14,657,596 $ 15,582,566 \n \n \n \n \n \n55,866 \n \n38,872 \n \n \n \n11,544 \n \n-- \n \n \n \n \n \n \n \n-- \n \n \n \n \n \n785 \n \n3,096 \n \n789 \n \n \n \n12,329 \n \n58,962 \n \n39,661 \n \n \n \n1,536 \n \n161,762 \n \n38,779 \n \n \n \n109,738 \n \n693,235 \n \n558,834 \n \n \n \n111,274 \n \n854,997 \n \n597,613 \n \nTotal \n \n2016, as \n \n2017 \n \nrestated \n \n657,190 40,960 \n170,608 1,584 3,793 15 \n \n621,060 43,933 \n151,264 1,429 3,931 15 \n \n1,622,833 341,694 1,147 (19,338) (44,927) \n1,901,409 \n2,775,559 \n \n(128,775) 340,308 \n1,107 (19,815) \n(4,780) \n188,045 \n1,009,677 \n \n1,574,118 21,849 36,058 16,487 \n1,648,512 \n1,127,047 \n \n1,518,314 19,762 33,911 16,178 \n1,588,165 \n(578,488) \n \n16,019,403 17,146,450 \n \n16,597,891 16,019,403 \n \n25 \n \nFinancial Section \n \nSee accompanying notes to financial statements. \n \n Financial Section \nDefined Benefit Plans  Combining Statement of Changes in Fiduciary Net Position \nYear ended June 30, 2017 (In thousands) \n26 \n \nAdditions: Contributions: Employer Nonemployer Member Participant fees Insurance premiums Administrative expense allotment \nInvestment income: Net increase (decrease) in fair value of investments Interest and dividends Other Less investment expenses Allocation of investment income Net investment income Total additions \nDeductions: Benefit payments Refunds of member contributions and interest Death benefits Administrative expenses \nTotal deductions \nNet increase (decrease) in net position \nNet position restricted for pensions and OPEB: \nBeginning of year, as restated \nEnd of year \nSee accompanying notes to financial statements. \n \nEmployees' Retirement \nSystem \n \nDefined Benefit Pension Plans \n \nPublic School Employees Retirement System \n \nLegislative Retirement \nSystem \n \nGeorgia Judicial Retirement System \n \nGeorgia Military Pension Fund \n \nSuperior Court Judges \nRetirement Fund \n \nDistrict Attorneys Retirement \nFund \n \nDefined Benefit OPEB Plan \nState Employees' Assurance Department \nOPEB \n \nDefined Benefit Plans Total \n \n$ 613,201 \n12,080 35,863 \n-- -- 10 \n \n 26,277 \n2,084    \n \n-- -- -- (8,157) 1,483,783 \n1,475,626 \n2,136,780 \n \n   (371) 98,086 \n97,715 \n126,076 \n \n  327    \n   (10) 3,751 \n3,741 \n4,068 \n \n4,081 2,603 4,906 \n   \n   (179) 49,438 \n49,259 \n60,849 \n \n2,018      \n   (6) 2,268 \n2,262 \n4,280 \n \n1,077 -- -- -- -- 1 \n-- -- -- -- -- \n \n1,078 \n \n51 \n \n1 \n \n620,429 \n \n \n \n \n \n40,960 \n \n \n \n \n \n43,180 \n \n \n \n \n \n \n \n \n \n3,793 \n \n3,793 \n \n4 \n \n \n \n15 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n(555) \n \n(9,278) \n \n \n \n126,105 \n \n1,763,431 \n \n \n \n125,550 \n \n1,754,153 \n \n55 \n \n129,344 \n \n2,462,530 \n \n1,394,283 9,033 -- 8,732 \n1,412,048 \n724,732 \n \n59,378 1,031  1,308 \n61,717 \n64,359 \n \n1,763 75  \n224 \n2,062 \n2,006 \n \n21,784 166  728 \n22,678 \n38,171 \n \n1,042   \n244 \n1,286 \n2,994 \n \n1,079 -- -- 1 \n1,080 \n(2) \n \n51 \n \n \n \n1,479,380 \n \n \n \n \n \n10,305 \n \n \n \n36,058 \n \n36,058 \n \n4 \n \n576 \n \n11,817 \n \n55 \n \n36,634 \n \n1,537,560 \n \n \n \n92,710 \n \n924,970 \n \n12,373,567 \n \n803,775 \n \n30,975 \n \n403,011 \n \n17,717 \n \n8 \n \n2 \n \n1,028,541 \n \n14,657,596 \n \n$ 13,098,299 \n \n868,134 \n \n32,981 \n \n441,182 \n \n20,711 \n \n6 \n \n2 \n \n1,121,251 \n \n15,582,566 \n \n Statement of Net Position State Employees' Assurance Department Active Members Fund \nJune 30, 2017 (with comparative totals for the year ended June 30, 2016) (In thousands) \n \nFinancial Section \n \nAssets Cash and cash equivalents Receivables: Unremitted insurance premiums Investments - at fair value: Equity share of pooled investment fund Total assets \nLiabilities Accounts payable and other Total liabilities Total net position \nSee accompanying notes to financial statements. \n \n2017 \n \n$ \n \n55 \n \n72 \n \n267,194 267,321 \n \n2016 \n14 80 240,948 241,042 \n \n35 35 $ 267,286 \n \n57 57 240,985 \n \n27 \n \n Statement of Revenues, Expenses, and Changes in Net Position State Employees' Assurance Department Active Members Fund \n \nYear ended June 30, 2017 (with comparative totals for the year ended June 30, 2016) (In thousands) \n \nOperating revenue: Insurance premiums Total operating revenue \nOperating expenses: Death benefits Administrative expenses Total operating expenses Total operating loss \nNonoperating revenues (expenses): Allocation of investment income from pooled investment fund Investment expenses Total nonoperating revenues Change in net position \nTotal net position: Beginning of year End of year \n \n2017 \n \n$ \n \n599 \n \n599 \n \n4,019 64 \n4,083 (3,484) \n \n29,847 (62) \n29,785 26,301 \n \n240,985 $ 267,286 \n \nFinancial Section \n2016 611 611 \n3,345 67 \n3,412 (2,801) \n3,169 (60) \n3,109 308 \n240,677 240,985 \n \nSee accompanying notes to financial statements. \n \n28 \n \n Financial Section \n \nStatement of Cash Flows State Employees' Assurance Department Active Members Fund \n \nYear ended June 30, 2017 (with comparative totals for the year ended June 30, 2016) (In thousands) \n \nCash flows from operating activities: Insurance premiums received Death benefits paid Administrative fees paid Net cash used in operating activities \n \n2017 \n \n$ \n \n607 \n \n(4,019) \n \n(85) \n \n(3,497) \n \nCash flows from investing activities: Withdrawals from pooled investment fund Investment expenses paid Net cash provided by investing activities Net increase (decrease) in cash and cash equivalents \n \n3,600 (62) \n3,538 41 \n \nCash and cash equivalents, beginning of year Cash and cash equivalents, end of year \n \n14 \n \n$ \n \n55 \n \nReconciliation of operating loss to net cash used in operating activities: \n \nOperating loss \n \n$ \n \nChanges in assets and liabilities: \n \nUnremitted insurance premiums \n \nAccounts payable and other \n \nNet cash used in operating activities \n \n$ \n \n(3,484) \n8 (21) (3,497) \n \n2016 \n614 (3,345) \n(53) (2,784) \n2,800 (60) \n2,740 (44) 58 14 \n(2,801) \n4 13 (2,784) \n \nSee accompanying notes to financial statements. \n \n29 \n \n Notes to Financial Statements \nJune 30, 2017 \n \nFinancial Section \n \n(1) General \nThe accompanying basic financial statements of the Employees' Retirement System of Georgia, including all plans and funds administered by the Employees' Retirement System of Georgia (collectively, the System), comprises the Employees' Retirement System of Georgia (ERS), Public School Employees Retirement System (PSERS), Legislative Retirement System (LRS), Georgia Judicial Retirement System (GJRS), Georgia Military Pension Fund (GMPF), Superior Court Judges Retirement Fund (SCJRF), District Attorneys Retirement Fund (DARF), State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEAD-OPEB), Georgia Defined Contribution Plan (GDCP), State of Georgia Employees' Qualified Trust Deferred Compensation Plan (401(k) Plan), State of Georgia Employees' Deferred Compensation Plan (457 Plan), Survivors Benefit Fund (SBF), and State Employees' Assurance Department Active Members Fund (SEAD-Active). All significant transactions among the various systems, departments, and funds have been eliminated. The Boards of Trustees, comprising active and retired members, ex-officio state employees, and appointees by the Governor, are ultimately responsible for the administration of the System. \n \n(2) Authorizing Legislation and Plan Descriptions \n \nEach plan and fund, including benefit and contribution provisions, was established and can be amended by state law. The following summarizes authorizing legislation and the plan description of each retirement fund: \n(a) ERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees and has the powers and privileges of a corporation. There were 427 employers and 1 nonemployer contributing entity participating in the plan during 2017. \n \nMembership As of June 30, 2017, participation in ERS is as follows: \nInactive members and beneficiaries currently receiving benefits Inactive members entitled to benefits but not yet receiving benefits Active plan members \nTotal \n \n49,632 57,329 60,983 \n167,944 \n \nBenefits The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the Old Plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are New Plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \nUnder the Old Plan, the New Plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or after 30 years of creditable service, regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. \n \n(continued) 30 \n \n Financial Section \n \nNotes to Financial Statements \nJune 30, 2017 \n \nAnnually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \nContributions and Vesting Member contributions under the Old Plan are 4% of annual compensation, up to $4,200, plus 6% of annual compensation in excess of $4,200. Under the Old Plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the Old Plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the New Plan and GSEPS are 1.25% of annual compensation. The state is required to contribute at a specified percentage of active member payrolls, determined annually by actuarial valuation. The state contributions are not at any time refundable to the member or his/her beneficiary. \nPursuant to The Official Code of Georgia Annotated (O.C.G.A.) 47-2-292, the employer contributions for local tax commissioners and their employees who took office or were employed prior to July 1, 2012 are funded by the State of Georgia on behalf of the local county employer. Pursuant to O.C.G.A. 47-2-290, the employer contribution for certain State Court employees is funded by the state on behalf of the local county employer. \nEmployer and nonemployer contributions as a percentage of covered payroll required for fiscal year 2017 were based on the June 30, 2014 actuarial valuation for the Old Plan, New Plan, and GSEPS, as follows: \n \nEmployer and nonemployer: Normal Employer paid for member Accrued liability \nTotal \n \nOld Plan \n1.38 % 4.75 18.56 24.69 % \n \nNew Plan \n6.13 %  \n18.56 24.69 % \n \nGSEPS \n3.13 % -- \n18.56 21.69 % \n \nMembers become vested after 10 years of membership service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \n \n(b) PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. There were 184 employers and 1 nonemployer contributing entity participating in the plan during 2017. \nMembership As of June 30, 2017, participation in PSERS is as follows: \n \nInactive members and beneficiaries currently receiving benefits Inactive members entitled to benefits but not yet receiving benefits Active plan members \nTotal \n \n18,104 48,189 35,510 \n101,803 \n \n(continued) 31 \n \n Notes to Financial Statements \nJune 30, 2017 \n \nFinancial Section \n \nBenefits A member may retire and elect to receive normal monthly retirement benefits after completion of 10 years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of 10 years of creditable service. \n \nUpon retirement, the member will receive a monthly benefit of $14.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-ofliving adjustments to the monthly benefits. \n \nContributions and Vesting Individuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. \n \nEmployer contributions required for the year ended June 30, 2017 were $727.97 per active member and were based on the June 30, 2014 actuarial valuation. \n \nMembers become vested after 10 years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \n \n(c) LRS is a single-employer defined benefit pension plan established by the Georgia General Assembly from 1967-1971, and later reestablished in 1979, for the purpose of providing retirement allowances for all members of the Georgia General Assembly. LRS is administered by the ERS Board of Trustees. There was one employer in the plan for 2017. \n \nMembership As of June 30, 2017, participation in LRS is as follows: \n \nInactive members and beneficiaries currently receiving benefits \n \n263 \n \nInactive members entitled to benefits but not yet receiving benefits \n \n164 \n \nActive plan members \n \n222 \n \nTotal \n \n649 \n \nBenefits A member's normal retirement is after eight years of creditable service and attainment of age 65, or eight years of membership service (four legislative terms) and attainment of age 62. A member may retire early and elect to receive a monthly retirement benefit after completion of eight years of membership service and attainment of age 60; however, the retirement benefit is reduced by 5% for each year the member is under age 62. \nUpon retirement, the member will receive a monthly service retirement allowance of $36, multiplied by the number of years of creditable service. Death benefits are also available through the plan. \nContributions and Vesting Member contributions are 8.5% of annual salary. The state pays member contributions in excess of 4.75% of annual compensation. Employer contributions are actuarially determined and approved and certified by the ERS Board of Trustees. \nThere were no employer contributions required for the year ended June 30, 2017 based on the June 30, 2014 actuarial valuation. \n \n(continued) 32 \n \n Financial Section \n \nNotes to Financial Statements \nJune 30, 2017 \n \nMembers become vested after eight years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \n(d) GJRS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1998 for the purpose of providing retirement allowances for judges and solicitors general of the state courts, and juvenile court judges in Georgia and their survivors and other beneficiaries, superior court judges of the State of Georgia, and district attorneys of the State of Georgia. \nThe GJRS was also created to serve the members and beneficiaries of the Trial Judges and Solicitors Retirement Fund, the Superior Court Judges Retirement System, and the District Attorneys Retirement System (collectively, the Predecessor Retirement Systems). As of June 30, 1998, any person who was an active, inactive, or retired member or beneficiary of the Predecessor Retirement Systems was transferred to GJRS in the same status effective July 1, 1998. All assets of the Predecessor Retirement Systems were transferred to GJRS as of July 1, 1998. The ERS Board of Trustees and three additional trustees administer GJRS. There were 94 employers and 1 nonemployer contributing entity participating in the plan during 2017. \nMembership As of June 30, 2017, participation in GJRS is as follows: \n \nInactive members and beneficiaries currently receiving benefits \n \n346 \n \nInactive members entitled to benefits but not yet receiving benefits \n \n60 \n \nActive plan members \n \n527 \n \nTotal \n \n933 \n \nBenefits The normal retirement for GJRS is age 60, with 16 years of creditable service; however, a member may retire at age 60 with a minimum of 10 years of creditable service. \nAnnual retirement benefits paid to members are computed as 66% of state-paid salary at retirement for district attorneys and superior court judges and 66% of the average over 24 consecutive months for trial judges, juvenile court judges, and solicitors, plus 1% for each year of credited service over 16 years, not to exceed 24 years. Early retirement benefits paid to members are computed as the pro rata portion of the normal retirement benefit, based on service not to exceed 16 years. Death, disability, and spousal benefits are also available. \nContributions and Vesting Members are required to contribute 7.5% of their annual salary. Those who became members prior to July 1, 2012 must also contribute an additional 2.5% of their annual salary if spousal benefit is elected. Employer contributions are actuarially determined and approved and certified by the GJRS Board of Trustees. \nPursuant to O.C.G.A. 47-23-81, the employer contributions for state court judges and solicitors are funded by the State of Georgia on behalf of the local county employers and pursuant to O.C.G.A. 47-23-82, the employer contributions for juvenile court judges are funded by the state on behalf of local county employers. \n \n(continued) 33 \n \n Notes to Financial Statements \nJune 30, 2017 \n \nFinancial Section \n \nEmployer and nonemployer contributions required for fiscal year 2017 were based on the June 30, 2014 actuarial valuation, as follows: \n \nEmployer and nonemployer: Normal Accrued liability \nTotal \n \n14.55 % (4.07) \n10.48 % \n \nMembers become vested after 10 years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \n \n(e) The GMPF is a single-employer defined benefit pension plan established on July 1, 2002 by the Georgia General Assembly for the purpose of providing retirement allowances and other benefits for members of the Georgia National Guard (the National Guard). The ERS Board of Trustees administers the GMPF. \nMembership As of June 30, 2017, the GMPF had 985 retirees and beneficiaries currently receiving benefits. Active and inactive plan member information is maintained by one employer, the Georgia Department of Defense. \nBenefits A member becomes eligible for benefits upon attainment of age 60, with 20 or more years of creditable service (including at least 15 years of service as a member of the National Guard), having served at least 10 consecutive years as a member of the National Guard immediately prior to discharge, and having received an honorable discharge from the National Guard. \nThe retirement allowance is payable for life in the amount of $50 per month, plus $5 per month for each year of creditable service in excess of 20 years. The maximum benefit is $100 per month. \nContributions and Vesting Employer contributions are actuarially determined and approved and certified by the ERS Board of Trustees. There are no member contributions required. \nEmployer contributions required for the year ended June 30, 2017 were $149.82 per active member and were based on the June 30, 2014 actuarial valuation. \nA member becomes vested after 20 years of creditable service (including at least 15 years of service as a member of the National Guard), having served at least 10 consecutive years as a member of the National Guard immediately prior to discharge, and having received an honorable discharge from the National Guard. \n \n(f) SCJRF is a single-employer defined benefit pension plan established by the Georgia General Assembly in 1945 for the purpose of providing retirement benefits to the superior court judges of the State of Georgia. SCJRF is directed by its own Board of Trustees. The Boards of Trustees for ERS and SCJRF entered into a contract for ERS to administer the plan effective July 1, 1995. \nMembership As of June 30, 2017, SCJRF had 16 retirees and beneficiaries currently receiving benefits and no active members. No new members are allowed into SCJRF. \n \n(continued) 34 \n \n Financial Section \n \nNotes to Financial Statements \nJune 30, 2017 \n \nBenefits The normal retirement for SCJRF is age 68, with 19 years of creditable service, with a benefit of two-thirds the salary paid to superior court judges. A member may also retire at age 65, with a minimum of 10 years of creditable service, with a benefit of one-half the salary paid to superior court judges. Death, disability, and spousal benefits are also available. \nContributions and Vesting Employer contributions are not actuarially determined, but are provided on an as-needed basis to fund current benefits. \n \n(g) DARF is a multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1949 for the purpose of providing retirement benefits to the district attorneys of the State of Georgia. DARF is directed by its own Board of Trustees. The Boards of Trustees for ERS and DARF entered into a contract for ERS to administer the plan effective July 1, 1995. \nMembership As of June 30, 2017, DARF had five retirees and beneficiaries currently receiving benefits and no active members. No new members are allowed into DARF. \nBenefits Persons appointed as district attorney emeritus shall receive an annual benefit of $15,000, or one-half of the state salary received by such person as a district attorney for the calendar year immediately prior to the person's retirement, whichever is greater. \nContributions and Vesting Employer contributions are not actuarially determined, but are provided on an as-needed basis to fund current benefits. \n \n(h) SEAD-OPEB is a cost-sharing multiple-employer defined benefit other postemployment benefit plan created in 2007 by the Georgia General Assembly to amend Title 47 of the O.C.G.A., relating to retirement, so as to establish a fund for the provision of term life insurance to retired and vested inactive members of ERS, LRS, and GJRS. Effective July 1, 2009, no newly hired members of any Georgia public retirement system are eligible for term life insurance under SEAD. The SEAD-OPEB trust fund accumulates the premiums received from the aforementioned retirement systems, including interest earned on deposits and investments of such payments from retired and vested inactive members. There were 455 employers and 1 nonemployer contributing entity participating in the plan during 2017. \nAs of June 30, 2017, participation in SEAD-OPEB is as follows: \n \nRetirees and beneficiaries Terminated employees Active plan members \nTotal \n \n41,717 1,054 \n28,873 \n71,644 \n \nEmployee contribution rates as a percentage of members' salaries were appropriated for the fiscal year ended June 30, 2017 as follows: ERS Old Plan  0.45% and ERS New Plan, LRS, and GJRS  0.23%. ERS Old Plan members were hired prior to July 1, 1982 and New Plan members were hired on or after July 1, 1982, but prior to January 1, 2009. \nGeorgia law provides that employee contributions to the plan shall be in an amount established by the Board of Trustees not to exceed one-half of 1% of the member's earnable compensation. There were no employer contributions required for the fiscal year ended June 30, 2017. \n \n(continued) 35 \n \n Notes to Financial Statements \nJune 30, 2017 \n \nFinancial Section \n \nAccording to the policy terms covering the lives of members, insurance coverage is provided on a monthly, renewable term basis, and no return premiums or cash value are earned. The net position represents the excess accumulation of investment income and premiums over benefit payments and expenses, and is held as a reserve for payment of death benefits under existing policies. \nThe amount of insurance for a retiree with creditable service prior to April 1, 1964 is the full amount of insurance under SEAD-Active in effect on the date of retirement. The amount of insurance for a service retiree with no creditable service prior to April 1, 1964 is 70% of the amount of insurance under SEAD-Active at age 60 or at termination, if earlier. Life insurance proceeds are paid in a lump sum to the beneficiary upon death of the retiree. \nAdministrative costs for the plan are determined based on the plan's share of overhead costs to accumulate and invest funds, actuarial services, and to process benefit payments to beneficiaries. Administrative fees are financed from the assets of the plan. \n(i) GDCP is a defined contribution plan established by the Georgia General Assembly in July 1992 for the purpose of providing retirement allowances for state employees who are not members of a public retirement or pension system and do not participate in Social Security. GDCP is administered by the ERS Board of Trustees. There were 71 employers participating in the plan during 2017. There were 117,509 members as of June 30, 2017. \nBenefits A member may retire and elect to receive periodic payments after attainment of age 65. The payments will be based upon mortality tables and interest assumptions adopted by the ERS Board of Trustees. If a terminated member has less than $5,000 credited to his/her account, the ERS Board of Trustees has the option of requiring a lump-sum distribution to the member. Upon the death of a member, a lump-sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary. \nContributions and Vesting Members are required to contribute 7.5% of their annual salary and vest immediately in the plan upon contribution. There are no employer contributions. Earnings will be credited to each member's account as adopted by the ERS Board of Trustees. Upon termination of employment, the amount of the member's account is refundable upon request by the member. \n(j) The 401(k) Plan was established by the State of Georgia Employee Benefit Plan Council in accordance with Georgia Law 1985, as amended, O.C.G.A, Sections 45-18-50 through 45-18-58, and Section 401(k) of the Internal Revenue Code (IRC). On October 1, 1994, activity commenced when the 401(k) Plan became available to employees of the State of Georgia Community Service Boards (CSBs). On December 1, 1998, the 401(k) Plan became available to employees of the Georgia Lottery Corporation (GLC). On July 1, 2005, the Plan became available to employees of Fayette County Board of Education; on July 1, 2006, the Plan became available to employees of Walton County Board of Education; on January 1, 2010, the Plan became available to employees of Henry County Board of Education; and on July 1, 2017, the Plan will become available to employees of the Baldwin County Board of Education. \nEffective July 1, 1998, the State of Georgia Employee's Deferred Compensation Group Trust (the Master Trust) was formed for the State of Georgia Deferred Compensation Program to serve as the funding medium for the 401(k) Plan. At that time, the 401(k) Plan began operating on an employee elective deferral basis for all state employees working at least 1,000 hours in a 12-month period. All assets of the 401(k) Plan are held in trust for the exclusive benefit of the participants and their beneficiaries. The assets of the 401(k) Plan and the 457 Plan are commingled in the Master Trust with the respective trusts owning units of the Master Trust. Participant contributions are invested according to the participant's investment election. If the participant does not make an election, investments are automatically defaulted to a Lifecycle Fund based on the participant's date of birth. \n \n(continued) 36 \n \n Financial Section \n \nNotes to Financial Statements \nJune 30, 2017 \n \nEffective July 1, 2005 (HB275), ERS became the trustee of the 401(k) Plan. Aon Hewitt, which became Alight Solutions in June 2017, and JPMorgan Chase hold, administer, and invest the assets of the Master Trust. \nContributions and Vesting Participating CSBs, the GLC, and Walton and Henry County Boards of Education offer employer contributions, some matching, some automatic, and some a combination of both, to eligible employees at various rates (limited to a maximum of $265,000 base salary in calendar year 2016 and $270,000 in calendar year 2017). As of January 1, 2009, individual participants may defer up to 80% of eligible compensation, or up to limits prescribed by the IRC (whichever is less). \nEffective January 1, 2009, in accordance with O.C.G.A. 47-2-350 through 47-2-360, newly hired state employees, as well as rehired state employees who did not maintain eligibility for the ERS Old Plan or New Plan, are members of GSEPS. From January 1, 2009 to June 30, 2014, the GSEPS tier included automatic enrollment in the 401(k) Plan at a contribution rate of 1% of salary. Effective July 1, 2014, in accordance with HB764, the employee contribution rate for automatic enrollment increased from 1% to 5%. The state matches 100% of the employee's initial 1% contribution and 50% of contributions above 1% and up to 5%. Therefore, the state will match 3% of salary when an employee contributes at least 5% to the 401(k) Plan. Employee contributions greater than 5% of salary do not receive any additional matching funds. Plan participants who are not employees of the GLC, a CSB, Walton and Henry County Boards of Education, or who are not GSEPS eligible do not receive any employer contributions in their 401(k) Plan. \nAll employer contributions are subject to a vesting schedule, which determines eligibility to receive all or a portion of the employer contribution balance at the time of any distribution from the account after separation from all state service. Vesting is determined based on the following schedule: \n \nLess than 1 year 1 2 3 4 5 or more years \n \n--% 20 40 60 80 100 \n \nFor CSB/GLC participants whose services terminated prior to January 1, 2010 but after December 31, 2001, the following vesting schedule applies: \n \nLess than 2 years 2 3 4 5 6 or more years \n \n--% 20 40 60 80 100 \n \nFor CSB/GLC participants whose services terminated prior to January 1, 2002, the following vesting schedule applies: \n \nLess than 3 years 3 4 5 6 7 or more years \n \n--% 20 40 60 80 100 \n \n(continued) 37 \n \n Notes to Financial Statements \nJune 30, 2017 \n \nFinancial Section \n \nEmployee contributions and earnings thereon are 100% vested at all times. The 401(k) Plan also allows participants to roll over amounts from other qualified plans to their respective account in the 401(k) Plan on approval by the 401(k) plan administrator. Such rollovers are 100% vested at the time of transfer. \nParticipation As of June 30, 2017, the 401(k) Plan had 61,407 participants with a balance. A total of 471 employers transmitted contributions to the plan during 2017. \nDistributions The participant may receive the value of his or her vested accounts upon attaining age 59.5, qualifying financial hardship, or 30 days after retirement or other termination of service (employer contribution balances are only eligible for distribution upon separation from service). Upon the death of a participant, his or her beneficiary shall be entitled to the vested value of his or her accounts. Employees who die while actively employed and eligible for 401(k) Plan employer matching contributions become fully vested in employer contributions upon death. Distributions are made in installments or in a lump sum. \n(k) The 457 Plan was established by the State Personnel Board in accordance with Georgia Law 1974, page 198 as amended, O.C.G.A., Sections 45-18-30 through 45-18-36, and Section 457 of the IRC. The 457 Plan is available to employees of the State of Georgia and county health departments and permits such employees to defer a portion of their annual salary until future years. Employee contributions and earnings thereon are 100% vested at all times. \nEffective July 1, 1998, the Master Trust was formed for the State of Georgia Deferred Compensation Program to serve as the funding medium for the 457 Plan. All assets of the 457 Plan are held in trust for the exclusive benefit of the participants and their beneficiaries. The assets of the 457 Plan and the 401(k) Plan are commingled in the Master Trust with the respective trusts owning units of the Master Trust. Participant contributions are invested according to the participant's investment election. If the participant does not make an election, investments are automatically defaulted to a Lifecycle Fund based on the participant's date of birth. \nEffective July 1, 2005 (HB275), ERS became the trustee of the 457 Plan. Aon Hewitt, which became Alight Solutions in June 2017, and JPMorgan Chase hold, administer, and invest the assets of the Master Trust. \nParticipation As of June 30, 2017, the 457 Plan had 12,899 participants with a balance. A total of 307 employers transmitted contributions to the plan during 2017. \nDistributions The balance in the employee's account in the 457 Plan is not available to the employee until age 70.5, termination, retirement, death, or unforeseeable emergency, as defined in the 457 Plan. Upon the death of a participant, his or her beneficiary shall be entitled to the vested value of his or her accounts. Distributions are made in installments or in a lump sum. \n(l) The SBF was established under O.C.G.A. 47-2-128(c)(3) within the ERS trust solely for maintaining group term life insurance coverage for members of the plan. All assets of the SBF are therefore limited to the payment of benefits and expenses for such coverage and cannot be used to pay pension benefits of ERS. The SBF is shown on the financial statements separately as an agency fund to reflect ERS's custodial responsibility and to account for assets held for distribution to SEAD-Active and SEAD-OPEB. The SBF may only be used to pay benefits or expenses of SEAD-OPEB or SEAD-Active with authorization by the ERS Board of Trustees. An actuarial valuation is not prepared, as there are no funding requirements. \n \n(continued) 38 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2017 \n(m) SEAD-Active is a cost-sharing multiple-employer life insurance plan created in 2007 by the Georgia General Assembly to amend Title 47 of the Official Code of Georgia Annotated, relating to retirement, so as to establish a fund for the provision of term life insurance to active members of ERS, LRS, and GJRS. Effective July 1, 2009, no newly hired members of any Georgia public retirement system are eligible for term life insurance under SEAD. The SEAD-Active fund accumulates the premiums received from the aforementioned retirement systems, including interest earned on deposits and investments of such payments from active members. There were 455 employers and 1 nonemployer contributing entity participating in the plan during 2017. As of June 30, 2017, there were 28,873 active plan members in SEAD-Active. \nEmployee contribution rates as a percentage of members' salaries were appropriated for the fiscal year ended June 30, 2017 as follows: ERS Old Plan  0.05% and ERS New Plan, LRS, and GJRS  0.02%. ERS Old Plan members were hired prior to July 1, 1982 and New Plan members were hired on or after July 1, 1982, but prior to January 1, 2009. \nGeorgia law provides that employee contributions to the plan shall be in an amount established by the Board of Trustees not to exceed one-half of 1% of the member's earnable compensation. There were no employer contributions required for the fiscal year ended June 30, 2017. \nAccording to the policy terms covering the lives of members, insurance coverage is provided on a monthly, renewable term basis, and no return premiums or cash value are earned. The net position represents the excess accumulation of investment income and premiums over benefit payments and expenses, and is held as a reserve for payment of death benefits under existing policies. \nThe amount of insurance coverage is equal to 18 times monthly earnable compensation frozen at age 60. For members with no creditable service prior to April 1, 1964, the amount decreases from age 60 by one-half of 1% per month until age 65, at which point the member will be covered for 70% of the age 60 coverage. Life insurance proceeds are paid in lump sum to the beneficiary upon death of the member. \nAdministrative costs for the plan are determined based on the plan's share of overhead costs to accumulate and invest funds, actuarial services, and to process benefit payments to beneficiaries. Administrative fees are financed from the assets of the plan. \n(3) Significant Accounting Policies and System Asset Matters \n(a) Basis of Accounting The System's financial statements are prepared in accordance with U.S. generally accepted accounting principles as applicable to governmental organizations. The System follows the reporting requirements established by GASB. \nFiduciary funds include the defined benefit plans and defined contribution plans, which are accounted for on the flow of economic resources measurement focus and the accrual basis of accounting. Contributions to the defined benefit pension plans and OPEB plan are recognized in the period in which the contributions are due. Benefits and refunds are recognized when due and payable in accordance with the terms of each plan. Contributions to the deferred compensation plans are recognized as received. The SBF is an agency fund and is custodial in nature and does not measure the results of operations. Assets and liabilities are recorded using the accrual basis of accounting. The proprietary fund comprises the SEAD-Active plan. This fund is accounted for on the flow of economic resources measurement focus and uses the accrual basis of accounting. The principal operating revenues are derived from insurance premiums. Operating expenses include the cost of claims and related expenses. \n(continued) 39 \n \n Notes to Financial Statements \nJune 30, 2017 \n \nFinancial Section \n \n(b) Reporting Entity \nThe System is a component unit of the State of Georgia; however, it is accountable for its own fiscal matters and presentation \nof its separate financial statements. The System has considered potential component units under GASB Statements No. 80, Blending Requirements for Certain Component Units, No. 61, The Financial Reporting Entity's Omnibus  An Amendment of GASB Statement No. 14 and No. 34, and No. 39, Determining Whether Certain Organizations are Component Units, \nand determined there were no component units of the System. \n \n(c) Cash and Cash Equivalents Cash and cash equivalents, reported at cost, include cash on deposit at banks and cash on deposit with the investment custodian. \n \n(d) Investments Investments are reported at fair value, and in some cases, net asset value (NAV) as a practical expedient to fair value. Equity securities traded on a national or international exchange are valued at the last reported sales price. Investments in private investment companies are valued utilizing the NAVs provided by the underlying private investment companies as a practical expedient. The Pooled Investment Fund (the Fund) applies the practical expedient to its investments in private investment companies on an investment by investment basis, and consistent with the Fund's entire position in a particular investment, unless it is probable that the Fund will sell a portion of an investment at an amount different from the NAV of the investment. Private equity fair value is measured using the valuation of the underlying companies as reported by the general partner. These investments, in the form of limited partnerships, reflect values and related performance on a quarter-lag basis due to the nature of the investments and the time it takes to value them. The estimated fair value of investments without readily ascertainable market values could differ significantly if a ready market for these assets existed. Fixed income securities are valued based primarily on quoted market prices provided by independent pricing sources. Global foreign exchange holdings are translated using a third party vendor. Investment income is recognized as earned by the System. There are no investments in, loans to, or leases with parties related to the System. \n \nThe System utilizes various investment instruments. Investment securities, in general, are exposed to various risks, such as interest rate, credit, foreign currency, and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the financial statements. \n \nThe System's policy with regard to the allocation of invested assets is established on a cost basis in compliance with Georgia statute. Plan assets are managed on a total return basis with a long-term objective of achieving and maintaining a fully funded status for the benefits provided through the pension and OPEB plans. The following was the System's adopted asset allocation policy as of June 30, 2017: \n \nAsset class \nFixed income Equities Alternative investments Cash and cash equivalents \nTotal \n \nTarget allocation \n25%-45% 55%-75% \n0%-5%  \n100% \n \nApproximately 14.6% of the investments held in trust for pension and OPEB benefits are invested in debt securities of the U.S. government. The System has no investments in any one organization, other than those issued by the U.S. government and its instrumentalities that represent 5% or more of the System's net position restricted for pensions and OPEB. \n \n(continued) 40 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2017 \nFor the year ended June 30, 2017, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 2.9%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. \n(e) Capital Assets Capital assets, including software development costs, are stated at cost less accumulated depreciation and reside in ERS. The capitalization thresholds are $100,000 for buildings and building improvements and $5,000 for equipment and vehicles. Depreciation on capital assets is computed using the straight-line method over estimated useful lives of 5 to 40 years. Depreciation expense is included in administrative expenses. Maintenance and repairs are charged to administrative expenses when incurred. When assets are retired or otherwise disposed of, the costs and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in the combining statement of changes in fiduciary net position in the period of disposal. \n(f) Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of net position and changes therein. Actual results could differ from those estimates. \n(g) New Accounting Pronouncements \nPronouncements effective for the 2017 financial statements: \nIn June 2015, the GASB issued Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. This Statement improves the usefulness of other postemployment benefits (OPEB) information included in the general purpose external financial reports of state and local governmental OPEB plans for making decisions and assessing accountability. This pronouncement resulted in expanded footnote disclosures and required supplementary information (RSI) related to the measurement of the OPEB liabilities. See footnote (3)(h) for more information regarding the implementation of this Statement. \nIn August 2015, the GASB issued Statement No. 77, Tax Abatement Disclosures. This Statement defines tax abatement and provides disclosure guidance for governments that have granted tax abatements. There are no applicable reporting requirements for the System related to this Statement. \nIn December 2015, the GASB issued Statement No. 78, Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans. The objective of this Statement is to amend the scope and applicability of Statement No. 68, Accounting and Financial Reporting for Pensions, to exclude pensions provided to employees of state or local governmental employers through certain multiple-employer defined benefit pension plans and to establish accounting and reporting requirements for those pensions. There are no applicable reporting requirements for the System related to this Statement. \nIn January 2016, the GASB issued Statement No. 80, Blending Requirements for Certain Component Units. The objective of this Statement is to improve financial reporting by clarifying the financial statement presentation requirements for certain component units and to amend the blending requirements established in paragraph 53 of Statement No. 14, The Financial Reporting Entity, as amended. There are no applicable reporting requirements for the System related to this Statement. \nIn March 2016, the GASB issued Statement No. 82, Pension Issues  an Amendment of GASB Statements No. 67, 68, and No. 73. The objective of this Statement is to address issues regarding (1) the presentation of payroll-related measures in the required supplementary information, (2) the selection of assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the classification of payments \n(continued) 41 \n \n Notes to Financial Statements \nJune 30, 2017 \n \nFinancial Section \n \nmade by employers to satisfy employee (plan member) contribution requirements. The implementation of GASB Statement No. 82 did not impact the amounts recorded or disclosures presented in the System's financial statements. \nPronouncements issued, but not yet effective: \nIn June 2015, the GASB issued Statement No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other Than Pensions, effective for fiscal years beginning after June 15, 2017. This Statement addresses accounting and financial reporting for OPEB that is provided to the employees of state and local governmental employers. This Statement establishes standards for recognizing and measuring liabilities, deferred outflows of resources, deferred inflows of resources, and expenses. This Statement also establishes requirements for note disclosures and required supplementary information for defined benefit OPEB plans. The System is in the process of evaluating the impact of this pronouncement on its financial statements. \nIn March 2016, the GASB issued Statement No. 81, Irrevocable Split-Interest Agreements, effective for fiscal years beginning after December 15, 2016. The objective of this Statement is to improve accounting and financial reporting for irrevocable split-interest agreements by providing recognition and measurement guidance for situations in which a government is a beneficiary of the agreement. There will be no applicable reporting requirements for the System related to this Statement. \nIn November 2016, the GASB issued Statement No. 83, Certain Asset Retirement Obligations, effective for fiscal years beginning after June 15, 2018. This Statement addresses accounting and financial reporting for certain asset retirement obligations (AROs). An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset. The System does not anticipate this statement to impact its financial statements and related reporting. \nIn January 2017, the GASB issued Statement No. 84, Fiduciary Activities, effective for fiscal years beginning after December 15, 2018. The objective of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. The System is in the process of evaluating the impact of this pronouncement on its financial statements. \nIn March 2017, the GASB issued Statement No. 85, Omnibus 2017, effective for fiscal years beginning after June 15, 2017. This Statement addresses practice issues that have been identified during implementation and application of certain GASB Statements. A variety of topics are addressed including issues related to blending component units, goodwill, fair value measurement and application, and OPEB. The System is in the process of evaluating the impact of this pronouncement on its financial statements. \nIn May 2017, the GASB issued Statement No. 86, Certain Debt Extinguishment Issues, effective for fiscal years beginning after June 15, 2017. The primary objective of this Statement is to improve consistency in accounting and financial reporting for in substance defeasance of debt. There will be no applicable reporting requirements for the System related to this Statement. \n \n(continued) 42 \n \n Financial Section \n \nNotes to Financial Statements \nJune 30, 2017 \n \n(h) Change in Accounting Principle During fiscal year 2017, the System adopted the provisions of GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans (OPEB). GASB Statement No. 74 requires the disclosure of \nthe net OPEB liability and expanded footnote disclosure and RSI for OPEB plans and clarifies what constitutes an OPEB \nplan. As a result, SEAD-Active and SBF, both previously reported as defined benefit OPEB plans, are now reported as an \nenterprise fund and an agency fund, respectively, based on the nature of their activities. Comparative financial information \npresented for 2016 has been restated to reflect this change as follows (amounts in thousands): \n \nCombining Statement of Fiduciary Net Position: Total assets as of 6/30/16, as previously reported Adoption of GASB Statement No. 74 Total assets as of 6/30/16, as restated Total liabilities as of 6/30/16, as previously reported Adoption of GASB Statement No. 74 Total liabilities as of 6/30/16, as restated \nCombining Statement of Changes of Fiduciary Net Position: Total additions as of 6/30/16, as previously reported Adoption of GASB Statement No. 74 Total additions as of 6/30/16, as restated Total deductions as of 6/30/16, as previously reported Adoption of GASB Statement No. 74 Total deductions as of 6/30/16, as restated Net Position as of 7/1/15, as previously reported Adoption of GASB Statement No. 74 Net position as of 7/1/15, as restated Net Position as of 6/30/16, as previously reported Adoption of GASB Statement No. 74 Net Position as of 6/30/16, as restated \n \nSystem Total \n \n$ 16,425,058 \n \n(14) \n \n$ 16,425,044 \n \n$ \n \n43,706 \n \n361,935 \n \n$ 405,641 \n \n$ 1,015,006 (5,329) \n$ 1,009,677 $ 1,591,577 \n(3,412) $ 1,588,165 $ 16,957,923 \n(360,032) $ 16,597,891 $ 16,381,352 \n(361,949) $ 16,019,403 \n \n(continued) 43 \n \n Notes to Financial Statements \nJune 30, 2017 \n \nFinancial Section \n \n(4) Investment Program \nThe System maintains sufficient cash to meet its immediate liquidity needs. Cash not immediately needed is invested as directed by the Board of Trustees. All investments are held by agent custodial banks in the name of the System. State statutes and the System's investment policy authorize the System to invest in a variety of short-term and long-term securities as follows: \n(a) Cash and Cash Equivalents Custodial credit risk is the risk that in the event a depository institution or counterparty fails, the System would not be able to recover the value of its deposits or investments. The System does not have a formal policy relating to custodial credit risk. The carrying amount of the System's deposits totaled $235.1 million at June 30, 2017 with actual bank balances of $238.7 million. The System's bank balances of $223.6 million are fully insured through the Federal Deposit Insurance Corporation, an independent agency of the U.S. government. The remaining bank deposits of $15.1 million are uninsured and uncollateralized. The System's noncash investments are held in the System's name and are not exposed to custodial credit risk. \nShort-term securities authorized but not currently used are as follows:  Repurchase and reverse repurchase agreements, whereby the System and a broker exchange cash for direct \nobligations 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. \n U.S. Treasury obligations. \n 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. \n 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. \nInvestments in commercial paper or master notes are limited to no more than $500 million in any one name. \n(b) Investments Fixed income investments, managed by the Division of Investment Services (the Division), are authorized in the following instruments:  U.S. and foreign government obligations. At June 30, 2017, the System held U.S. Treasury bonds of approximately $2.5 billion and international government bonds of approximately $76.9 million. \n Obligations unconditionally guaranteed by agencies of the U.S. government. At June 30, 2017, the System did not hold agency bonds. \n U.S. and foreign corporate obligations. At June 30, 2017, the System held U.S. corporate bonds of approximately $1.9 billion and international corporate bonds of approximately $192.6 million. \n Private placements are authorized under the same general restrictions applicable to corporate bonds. At June 30, 2017, the System did not hold private placements. \n \n(continued) 44 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2017 \nMortgage investments are authorized to the extent that they are secured by first mortgages on improved real property located in the State of Georgia. \nEquity securities are also authorized (in statutes) for investment as a complement to the System's fixed-income portfolio and as a long-term inflation hedge. By statute, no more than 75% of the total invested assets on a historical cost basis may be placed in equities. Equity holdings in any one corporation may not exceed 5% of the outstanding equity of the issuing corporation. The equity portfolio is managed by the Division, in conjunction with independent advisers. 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. \nEquity investments are authorized in the following instruments:  Domestic equities are those securities considered by O.C.G.A. to be domiciled in the United States. At June 30, 2017, \nthe System held domestic equities of approximately $8.2 billion. \n International equities, including American Depository Receipts (ADR), are not considered by the O.C.G.A. to be domiciled in the United States. At June 30, 2017, the System held international equities of approximately $762.1 million and ADRs of approximately $2.0 billion, excluding the 401(k) and 457 plans. \n Alternative investments are authorized (in statutes) to provide portfolio diversification and to enhance the risk-adjusted rate of return for the retirement fund that benefits the members of the System. By statute, the allocation to alternative investments shall not, in the aggregate, exceed 5% of the System's plan assets at any time. Further, in any calendar year, new commitments to alternative investments shall not, in the aggregate exceed 1.0% of the System's plan assets until the first occurrence that 4.5% of the assets have been invested, at which time there shall be no limit on the percentage of commitments that may be made in any calendar year, subject to compliance with other provisions of the statute. At June 30, 2017, the System held private equity investments of approximately $134.2 million. \nThe Master Trust invests in various mutual funds, common collective trust funds, and separate accounts, as selected by participants. Each participant is allowed to select and invest contributions into investment options that own one or more commingled funds, as authorized by the Board of Trustees. Participants may also contribute to a self-directed brokerage account that offers investments in various mutual funds and equities. At June 30, 2017, the deferred compensation plans held commingled funds of approximately $1.4 billion, mutual funds of approximately $5.6 million, domestic equities of approximately $12.0 million, and international equities of approximately $1.2 million. \nSubstantially all of the investments of ERS, PSERS, LRS, GJRS, GMPF, SEAD-OPEB, SBF, and SEAD-Active are pooled into one common investment fund. Units in the pooled common investment fund are allocated to the respective plans, based upon the cost of assets contributed, and additional units are allocated to the participating plans, based on the market value of the pooled common investment fund at the date of contribution. Net income of the pooled common investment fund is allocated monthly to the participating plans, based upon the number of units outstanding during the month. \n(continued) 45 \n \n Notes to Financial Statements \nJune 30, 2017 \n \nFinancial Section \n \nThe units and fair value of each plan's equity in the pooled common investment fund at June 30, 2017 were as follows (dollars in thousands): \n \nEmployees' Retirement System Public School Employees Retirement System Legislative Retirement System Georgia Judicial Retirement System Georgia Military Pension Fund State Employees' Assurance Department - OPEB Survivors Benefit Fund \nTotal defined benefit plans \nState Employees' Assurance Department - Active \nTotal in pooled investment funds \n \nFair value $ 13,047,409 \n868,952 33,039 \n440,443 20,682 \n1,120,853 135,951 \n15,667,329 \n267,194 \n$ 15,934,523 \n \nUnits \n2,879,843 191,796 7,292 97,215 4,565 247,396 30,007 \n3,458,114 \n58,976 \n3,517,090 \n \nFair Value Measurements. The System categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the inputs used in valuation and gives the highest priority to unadjusted quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the hierarchy is based on whether the significant inputs into the valuations are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest level, Level 1, is given to unadjusted quoted prices in active markets and the lowest level, Level 3, to unobservable inputs. \nThe three levels of the fair value hierarchy are as follows: \nLevel 1  Valuations based on unadjusted quoted prices for identical instruments in active markets that the System has the ability to access \nLevel 2  Valuations based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs are observable \nLevel 3  Valuations based on inputs that are unobservable and significant to the overall fair value measurement \nThe System also has investments held through limited partnerships for which fair value is estimated using the NAV reported by the general partner as a practical expedient to fair value. Such investments have not been categorized within the fair value hierarchy. \nIn instances where inputs used to measure fair value fall into different levels in the fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The System's assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each investment. The table on the following page shows the fair value leveling of the System's investments (in thousands). \n \n(continued) 46 \n \n Notes to Financial Statements \nJune 30, 2017 \n \nFinancial Section \n \nInvestments by fair value level \nEquities: Domestic International \nObligations: Domestic: U.S. Treasuries Corporate bonds International: Governments Corporate bonds \nMutual funds Commingled funds \n \nFair value measures using \n \nQuoted prices in active \nmarkets for identical assets \n(Level 1) \n \nSignificant other \nobservable inputs (Level 2) \n \nSignificant unobservable \ninputs (Level 3) \n \n$ \n \n8,249,568 \n \n-- \n \n75 \n \n2,761,392 \n \n19,276 \n \n-- \n \n2,516,114 \n \n-- \n \n-- \n \n-- \n \n1,882,175 \n \n-- \n \n-- \n \n76,935 \n \n-- \n \n-- \n \n192,589 \n \n-- \n \n5,601 \n \n-- \n \n-- \n \n81,919 \n \n1,333,769 \n \n-- \n \nTotal investments by \n \nfair value level \n \n$ \n \nInvestments measured at NAV* Private equity funds \n \nTotal investments \n \n13,614,594 \n \n3,504,744 \n \n75 $ \n \nTotal \n8,249,643 2,780,668 \n2,516,114 1,882,175 \n76,935 192,589 \n5,601 1,415,688 \n17,119,413 \n134,213 17,253,626 \n \n*Certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the combining statement of fiduciary net position. \n \nEquity securities classified in Level 1 are valued using prices quoted in active markets for those securities. Equity securities in Level 2 are valued using prices quoted for similar instruments in active markets. Equity securities classified in Level 3 are valued using third-party valuations not currently observable in the market. \nDebt securities classified in Level 1 are valued using prices quoted in active markets. Debt securities classified in Level 2 are valued using either a bid evaluation or a matrix pricing technique. Bid evaluations may include market quotations, yields, maturities, call features, and ratings. Matrix pricing is used to value securities based on the securities' relationship to benchmark quoted prices. These securities have nonproprietary information that was readily available to market participants, from multiple independent sources, which are known to be actively involved in the market. \nMutual funds and commingled funds classified in Level 1 are valued using prices quoted in active markets for those investment types. Commingled funds classified in Level 2 are valued using observable underlying inputs that are market corroborated. \n \n(continued) 47 \n \n Notes to Financial Statements \nJune 30, 2017 \n \nFinancial Section \n \nUnfunded commitments, redemption frequency, and redemption notice period relative to the System's alternative investments for which the System utilized NAV or its equivalent relative to the determination of fair value at June 30, 2017 are as follows (in thousands): \n \nPrivate equity funds \n \nInvestments measured at \nNAV \n$ 134,213 \n \nUnfunded commitments \n261,146 \n \nRedemption frequency (if currently eligible) \nNot eligible \n \nRedemption notice period \nN/A \n \nInvestments in privately held limited partnerships are valued using the NAV provided by the general partner as of March 31 of each fiscal year, adjusted by the System for cash flows through June 30. The quarterly values of the partnership investments provided from the general partner are reviewed by the System to determine if any adjustments are necessary. The types of partnership strategies held include growth equity, leveraged buyouts, and mezzanine debt. Two of the 15 partnerships held are secondary investments and are in or nearing the wind-up phase of the fund. The remaining investments typically have an approximate life of 810 years. These investments are considered illiquid since the nature of these private investments prohibits redemption with the fund; instead, distributions are received from the general partner through liquidation of the underlying assets of the fund. The System currently has no plans to sell any of the investments prior to their liquidation resulting in these assets being carried at the NAV estimated by the general partner and adjusted for second quarter cash flows by the System. \nCredit Risk: Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations to the System. O.C.G.A. 47-20-84 limits investments to investment grade securities. \nIt is the System's investment policy to require that the bond portfolio be of high quality and chosen with respect to maturity ranges, coupon levels, refunding characteristics, and marketability. The System's policy is to require that new purchases of bonds be restricted to high-grade bonds rated no lower than \"A\" by any nationally recognized statistical rating organization. If a bond is subsequently downgraded to a rating below \"A,\" it is placed on a watch list. The System holds one bond which was downgraded to a rating below \"A.\" Obligations of the U.S. government or obligations explicitly guaranteed by the U.S. government are not considered to have credit risk and do not require disclosure of credit quality. The quality ratings of investments in fixed income securities as described by Standard \u0026 Poor's and by Moody's Investors Service, which are nationally recognized statistical rating organizations, at June 30, 2017 are shown in the chart on the following page (in thousands): \n \n(continued) 48 \n \n Notes to Financial Statements \nJune 30, 2017 \n \nFinancial Section \n \nQuality Ratings of Fixed Income Investments Held at June 30, 2017 \n \nInvestment type Domestic obligations: \nU.S. Treasuries Corporates \nTotal corporates International obligations: \nGovernments Corporates \nTotal corporates Total fixed income investments \n \nStandard \u0026 Poor's/ Moody's \nquality rating \n \nJune 30, 2017 fair value \n \nAAA/Aaa AA/Aaa AA/Aa AA/A \nA/A BBB/Baa \n \n$ \n \n2,516,114 \n \n192,343 \n \n192,005 \n \n251,366 \n \n458,391 \n \n711,134 \n \n76,936 \n \n1,882,175 \n \nA/Aa \n \n76,935 \n \nA/Aa \n \n96,266 \n \nA/A \n \n96,323 \n \n192,589 \n \n$ \n \n4,667,813 \n \nMutual funds, commingled funds, and various equities of the deferred compensation plans are not considered to have credit risk and do not require disclosure of credit risk rating. \nConcentration of Credit Risk: Concentration of credit risk is the risk of loss that may be attributed to the magnitude of a government's investment in a single issue. At June 30, 2017, the System did not have debt or equity investments in any one organization, other than those issued or guaranteed by the U.S. government or its agencies, which represented greater than 5% of plan net position. \nInterest Rate Risk: Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. While the System has no formal interest rate risk policy, active management of the bond portfolio incorporates interest rate risk to generate improved returns. This risk is managed within the portfolio using the effective duration method. This method is widely used in the management of fixed income portfolios and quantifies to a much greater degree the sensitivity to interest rate changes when analyzing a bond portfolio with call options, prepayment provisions, and any other cash flows. Effective duration makes assumptions regarding the most likely timing and amounts of variable cash flows and is best utilized to gauge the effect of a change in interest rates on the fair value of a portfolio. It is believed that the reporting of effective duration found in the table on the following page quantifies to the fullest extent possible the interest rate risk of the System's fixed income assets (in thousands). \n \n(continued) 49 \n \n Notes to Financial Statements \nJune 30, 2017 \n \nFinancial Section \n \nEffective Duration of Fixed Income Assets \n \nFixed income type \nDomestic obligations: U.S. Treasuries Corporates \nInternational obligations: Governments Corporates \nTotal \n \nFair value June 30, 2017 \n \nPercent of all fixed income assets \n \n$ 2,516,114 1,882,175 \n76,935 192,589 $ 4,667,813 \n \n53.9 % 40.3 \n1.7 4.1 100.0 % \n \nEffective duration (years) \n5.7 4.0 \n0.3 1.8 4.7 \n \nForeign Currency Risk: Foreign currency risk is the risk that changes in exchange rates will adversely impact the fair value of an investment. The System's currency risk exposures, or exchange rate risks, primarily reside within the System's international equity investment holdings. The System's foreign exchange risk management policy is to minimize risk and protect the investments from negative impact by hedging foreign currency exposures with foreign exchange instruments when market conditions and circumstances are deemed appropriate. As of June 30, 2017, the System's exposure to foreign currency risk in U.S. dollars, excluding the 401(k) and 457 plans, is highlighted in the table on the following page (in thousands): \n \n50 \n \n(continued) \n \n Notes to Financial Statements \nJune 30, 2017 \n \nFinancial Section \n \nInternational Investment Securities at Fair Value as of June 30, 2017 \n \nCurrency \nAustralian dollar Brazilian real British pound Canadian dollar Czech krone Danish krone Euro Hong Kong dollar Indian rupee Indonesian rupiah Japanese yen Malaysian ringgit Mexican peso New Taiwan dollar Philippine peso Polish zloty Singapore dollar South African rand South Korean won Swedish krona Swiss franc Thailand baht \nTotal holdings subject to foreign currency risk \n \nEquities \n \n$ \n \n33,088 \n \n18,200 \n \n72,752 \n \n9,989 \n \n456 \n \n18,472 \n \n114,340 \n \n39,625 \n \n43,935 \n \n6,128 \n \n113,116 \n \n9,874 \n \n7,258 \n \n48,498 \n \n5,483 \n \n3,839 \n \n20,872 \n \n37,877 \n \n82,203 \n \n35,036 \n \n17,249 \n \n19,276 \n \n757,566 \n \nFixed income \n-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- \n-- \n \nInvestment securities payable in U.S. dollars \n \n2,021,952 \n \n269,524 \n \nTotal international investment securities - at fair value \n \n$ \n \n2,779,518 \n \n269,524 \n \nTotal \n33,088 18,200 72,752 \n9,989 456 \n18,472 114,340 39,625 43,935 \n6,128 113,116 \n9,874 7,258 48,498 5,483 3,839 20,872 37,877 82,203 35,036 17,249 19,276 \n757,566 \n2,291,476 \n3,049,042 \n \n(5) Securities Lending Program \nState statutes and Board of Trustees policies permit the System to lend its securities to broker-dealers with a simultaneous agreement to return the collateral for the same securities in the future. The System is presently involved in a securities lending program with major brokerage firms. The System lends equity and fixed income securities for varying terms and receives a fee based on the loaned securities' value. The System reports the gross loan fee income earned as investment income on the combining statement of changes in fiduciary net position. During a loan, the System continues to receive dividends and interest as the owner of the loaned securities. The brokerage firms pledge collateral securities consisting of U.S. government and agency securities, mortgage-backed securities issued by a U.S. government agency, corporate bonds, and equities. The collateral value must be equal to at least 102% to 109% of the loaned securities' value, depending on the type of collateral security. \nSecurities loaned totaled approximately $3.7 billion at fair value at June 30, 2017. The collateral value was equal to 103.8% of the loaned securities' value at June 30, 2017. The System's lending collateral was held in the System's name by the tri-party custodian. \n \n(continued) 51 \n \n Notes to Financial Statements \nJune 30, 2017 \n \nFinancial Section \n \nLoaned securities are included in the accompanying combining statement of fiduciary net position since the System maintains ownership. The related collateral securities are not recorded as assets on the System's combining statement of fiduciary net position, and a corresponding liability is not recorded, since the System is deemed not to have the ability to pledge or trade the collateral securities. The System is deemed not to have the ability to pledge or sell the collateral securities, since the System's lending contracts do not address whether the lender can pledge or sell the collateral securities without a borrower default, the System has not previously demonstrated that ability, and there are no indications of the System's ability to pledge or sell the collateral securities. \n \n(6) Capital Assets \n \nThe following is a summary of capital assets and depreciation information as of and for the year ended June 30, 2017: \n \nCapital assets: Land Building Equipment Vehicles Computer software \n \nBalance at June 30, 2016 \n \nAdditions \n \nBalance at Disposals June 30, 2017 \n \n$ 4,341,787 2,800,000 3,006,423 13,382 \n14,344,609 \n24,506,201 \n \n  265,789   \n265,789 \n \n \n \n4,341,787 \n \n \n \n2,800,000 \n \n \n \n3,272,212 \n \n \n \n13,382 \n \n \n \n14,344,609 \n \n \n \n24,771,990 \n \nAccumulated depreciation for: Building Equipment Vehicles Computer software \nCapital assets, net \n \n(840,000) (2,365,228) \n(13,382) (14,344,609) \n(17,563,219) \n$ 6,942,982 \n \n(70,000) (234,384) \n-- -- \n(304,384) \n(38,595) \n \n \n \n(910,000) \n \n \n \n(2,599,612) \n \n \n \n(13,382) \n \n \n \n(14,344,609) \n \n \n \n(17,867,603) \n \n \n \n6,904,387 \n \n(7) Commitments \nAs of June 30, 2017, the System had committed to fund certain private equity partnerships for a total capital commitment of approximately $397.8 million. Of this amount, approximately $261.1 million remained unfunded and is not recorded on the System's combining statement of fiduciary net position. \n \n(8) Net Pension Liability of Employers and Nonemployers - ERS \n \nThe components of the net pension liability of the participating employers and nonemployers at June 30, 2017 were as follows (dollars in thousands): \n \nTotal pension liability Plan fiduciary net position \nEmployers' and nonemployers' net pension liability \nPlan fiduciary net position as a percentage of the total pension liability \n \n$ 17,159,634 13,098,299 \n \n$ \n \n4,061,335 \n \n76.33% \n \n(continued) 52 \n \n Financial Section \nNotes to Financial Statements \nJune 30, 2017 \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2016, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases Investment rate of return \n \n2.75% 3.25 - 7.00%, including inflation 7.50%, net of pension plan investment expense, including inflation \n \nPostretirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries projection scale BB and set forward two years for both males and females for service retirements and dependent beneficiaries. The RP-2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society of Actuaries projection scale BB and set back seven years for males and set forward three years for females was used for death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. There is a margin for future mortality improvement in the tables used by the plan. \n \nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \n \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class \nFixed income Domestic large equities Domestic mid equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n \nTarget allocation \n30.00 % 37.20 \n3.40 1.40 17.80 5.20 5.00 \n100.00 % \n \nLong-term expected real rate of return* \n(0.50) % 9.00 12.00 13.50 8.00 12.00 10.50 \n \n* Rates shown are net of inflation \nDiscount rate: The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \n(continued) 53 \n \n Financial Section \n \nNotes to Financial Statements \nJune 30, 2017 \n \nSensitivity of the net pension liability to changes in the discount rate: The following presents the net pension liability, calculated using the discount rate of 7.50%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate (dollars in thousands): \n \nEmployers' and nonemployers' net pension liability \n \n1% Decrease (6.50%) \n$ 5,732,372 \n \nCurrent discount \nrate (7.50%) \n4,061,335 \n \n1% Increase (8.50%) \n2,635,889 \n \nActuarial valuation date: June 30, 2016 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2017 using standard roll-forward techniques. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n \n(9) Net Pension Liability of Employers and Nonemployers  PSERS \n \nThe components of the net pension liability of the participating employers and nonemployers at June 30, 2017 were as follows (dollars in thousands): \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployers' and nonemployers' net pension liability \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \n1,013,163 868,134 \n145,029 \n85.69% \n \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2016, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases Investment rate of return \n \n2.75% n/a 7.50%, net of pension plan investment expense, including inflation \n \nPostretirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward three years for males and two years for females) for the period after service retirement and for dependent beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward five years for both males and females) was used for death after disability retirement. Rates of mortality in active service were based on the RP2000 Employee Mortality Table projected to 2025 with projection scale BB. There is a margin for future mortality improvement in the tables used by the plan. \nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in table on the following page: \n \n(continued) 54 \n \n Notes to Financial Statements \nJune 30, 2017 \n \nFinancial Section \n \nAsset class \nFixed income Domestic large equities Domestic mid equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n \nTarget allocation \n30.00 % 37.20 \n3.40 1.40 17.80 5.20 5.00 \n100.00 % \n \nLong-term expected real rate of return* \n(0.50) % 9.00 12.00 13.50 8.00 12.00 10.50 \n \n* Rates shown are net of inflation. \nDiscount rate: The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \nSensitivity of the net pension liability to changes in the discount rate: The following presents the net pension liability, calculated using the discount rate of 7.50%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate (dollars in thousands): \n \nEmployers' and nonemployers' net pension liability \n \n1% Decrease (6.50%) \n$ 256,593 \n \nCurrent discount \nrate (7.50%) \n145,029 \n \n1% Increase (8.50%) \n51,139 \n \nActuarial valuation date: June 30, 2016 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2017 using standard roll-forward techniques. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n \n(10) Net Pension Liability of Employer  LRS \n \nThe components of the net pension liability of the participating employer at June 30, 2017 were as follows (dollars in thousands): \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployer's net pension asset \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \n25,898 32,981 \n(7,083) \n127.35% \n \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2016, using the following actuarial assumptions, applied to all periods included in the measurement: \n \n(continued) 55 \n \n Notes to Financial Statements \nJune 30, 2017 \n \nFinancial Section \n \nInflation Salary increases Investment rate of return \n \n2.75% n/a 7.50%, net of pension plan investment expense, including inflation \n \nPostretirement mortality rates were based on the RP-2000 Combined Mortality Table projected to 2025 with projection scale BB (set forward two years for both males and females) for the period after service retirement. The RP-2000 Employee Mortality Table projected to 2025 using projection scale BB was used for deaths in active service. There is a margin for future mortality improvement in the tables used by the plan. \n \nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \n \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class \nFixed income Domestic large equities Domestic mid equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n \nTarget allocation \n30.00 % 37.20 \n3.40 1.40 17.80 5.20 5.00 \n100.00 % \n \nLong-term expected real rate of return* \n(0.50) % 9.00 12.00 13.50 8.00 12.00 10.50 \n \n* Rates shown are net of inflation. \n \nDiscount rate: The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \nSensitivity of the net pension liability to changes in the discount rate: The following table presents the net pension liability, calculated using the discount rate of 7.50%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate (dollars in thousands): \n \nEmployers' net pension asset \n \n1% Decrease (6.50%) \n$ (4,654) \n \nCurrent discount \nrate (7.50%) \n(7,083) \n \n1% Increase (8.50%) \n(9,138) \n \n(continued) 56 \n \n Financial Section \n \nNotes to Financial Statements \nJune 30, 2017 \n \nActuarial valuation date: June 30, 2016 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2017 using standard roll-forward techniques. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n \n(11) Net Pension Liability of Employers and Nonemployers  GJRS \n \nThe components of the net pension liability of the participating employers and nonemployers at June 30, 2017 were as follows (dollars in thousands): \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployers' and nonemployers' net pension asset \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \n394,736 441,182 \n(46,446) \n111.77% \n \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2016, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases Investment rate of return \n \n2.75% 4.50%, including inflation 7.50%, net of pension plan investment expense, including inflation \n \nMortality rates were based on the RP-2000 Combined Mortality Table projected to 2025 with projection scale BB and set forward two years for both males and females for the period after retirement and for dependent beneficiaries. For the period after disability retirement, the RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB and set back seven years for males and set forward three years for females is used. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. There is a margin for future mortality improvement in the tables used by the plan. \n \nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \n \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset Class \nFixed income Domestic large equities Domestic mid equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n \nTarget allocation \n30.00 % 37.20 \n3.40 1.40 17.80 5.20 5.00 \n100.00 % \n \nLong-term expected real rate of return* \n(0.50) % 9.00 12.00 13.50 8.00 12.00 10.50 \n \n* Rates shown are net of inflation. 57 \n \n(continued) \n \n Financial Section \n \nNotes to Financial Statements \nJune 30, 2017 \n \nDiscount rate: The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \nSensitivity of the net pension liability to changes in the discount rate: The following table presents the net pension liability, calculated using the discount rate of 7.50%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate (dollars in thousands): \n \nEmployers' and nonemployers' net pension asset \n \n1% Decrease (6.50%) \n$ (8,873) \n \nCurrent discount \nrate (7.50%) \n(46,446) \n \n1% Increase (8.50%) \n(79,122) \n \nActuarial valuation date: June 30, 2016 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2017 using standard roll-forward techniques. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n \n(12) Net Pension Liability of Employer  GMPF \n \nThe components of the net pension liability of the participating employer at June 30, 2017 were as follows (dollars in thousands): \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployer's net pension liability \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \n40,085 20,711 \n19,374 \n51.67% \n \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2016, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases Investment rate of return \n \n2.75% n/a 7.50%, net of pension plan investment expense, including inflation \n \nPostretirement mortality rates were based on the RP-2000 Combined Mortality Table projected to 2025 with projection scale BB (set forward two years for both males and females) for the period after service retirement. The RP-2000 Employee Mortality Table projected to 2025 using projection scale BB was used for deaths in active service. There is a margin for future mortality improvement in the tables used by the plan. \n \nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \n \n(continued) 58 \n \n Financial Section \n \nNotes to Financial Statements \nJune 30, 2017 \n \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class \nFixed income Domestic large equities Domestic mid equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n \nTarget allocation \n30.00 % 37.20 \n3.40 1.40 17.80 5.20 5.00 \n100.00 % \n \nLong-term expected real rate of return* \n(0.50) % 9.00 12.00 13.50 8.00 12.00 10.50 \n \n* Rates shown are net of inflation. \nDiscount rate: The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \nSensitivity of the net pension liability to changes in the discount rate: The following table presents the net pension liability, calculated using the discount rate of 7.50%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate (dollars in thousands): \n \nEmployers' net pension liability \n \n1% Decrease (6.50%) \n$ 25,182 \n \nCurrent discount \nrate (7.50%) \n19,374 \n \n1% Increase (8.50%) \n14,656 \n \nActuarial valuation date: June 30, 2016 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2017 using standard roll-forward techniques. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n \n(continued) 59 \n \n Notes to Financial Statements \nJune 30, 2017 \n \nFinancial Section \n \n(13) Net OPEB Liability of Employers - SEAD-OPEB \n \nThe components of the net OPEB liability of the participating employers at June 30, 2017 were as follows (dollars in thousands): \n \nTotal OPEB liability Plan fiduciary net position \n \n$ \n \n861,346 \n \n1,121,251 \n \nEmployers' net OPEB asset \n \n$ \n \n(259,905) \n \nPlan fiduciary net position as a percentage of the total OPEB liability \n \n130.17% \n \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2016, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases: \nERS GJRS LRS Investment rate of return Healthcare cost trend rate \n \n2.75% \n3.25% - 7.00% 4.50% n/a 7.50%, net of pension plan investment expense, including inflation n/a \n \nPostretirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries projection scale BB and set forward two years for both males and females for service retirements and dependent beneficiaries. There is a margin for future mortality improvement in the tables used by the plan. \n \nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \n \nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class \nFixed income Domestic large equities Domestic mid equities Domestic small equities International developed market equities International emerging market equities Alternatives \nTotal \n \nTarget allocation \n30.00 % 37.20 \n3.40 1.40 17.80 5.20 5.00 \n100.00 % \n \nLong-term expected real rate of return* \n(0.50) % 9.00 12.00 13.50 8.00 12.00 10.50 \n \n* Rates shown are net of inflation. \n \n(continued) 60 \n \n Financial Section \n \nNotes to Financial Statements \nJune 30, 2017 \n \nDiscount rate: The discount rate used to measure the total OPEB liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. \nSensitivity of the net OPEB liability to changes in the discount rate: The following table presents the net OPEB asset, calculated using the discount rate of 7.50%, as well as what the net OPEB asset would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate (dollars in thousands): \n \nEmployers' net OPEB asset \n \n1% Decrease (6.50%) \n$ (142,257) \n \nCurrent discount \nrate (7.50%) \n(259,905) \n \n1% Increase (8.50%) \n(356,322) \n \nActuarial valuation date: June 30, 2016 is the actuarial valuation date upon which the total OPEB liability is based. An expected total OPEB liability is determined as of June 30, 2017 using standard roll-forward techniques. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n \n61 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) Schedules of Employers' and Nonemployers' Contributions - Defined Benefit Plans \nFor year ended June 30, 2017 (In thousands) \n(continued) 62 \n \nEmployees' Retirement System1 \nPublic School Employees Retirement System2 \nLegislative Retirement System3 \n \nYear ended \n6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 \n6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 \n6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 \n \nActuarially Determined Contribution \n(a) \n$ 286,256 282,103 263,064 261,132 273,623 358,376 428,982 517,220 595,124 624,623 \n2,869 5,529 5,530 7,509 15,884 24,829 27,160 28,461 28,580 26,277 \n-- -- -- -- -- -- -- -- -- -- \n \nContributions in relation to the actuarially determined contribution \n(b) \n286,256 281,206 263,064 261,132 274,034 358,992 429,752 518,163 595,566 625,281 \n2,869 5,529 5,530 7,509 15,884 24,829 27,160 28,461 28,580 26,277 \n73 71 75 75 76 128 45 -- -- -- \n \nContribution deficiency (excess) \n(a-b) \n-- 897 \n-- -- (411) (616) (770) (943) (442) (658) \n-- -- -- -- -- -- -- -- -- -- \n(73) (71) (75) (75) (76) (128) (45) \n-- -- -- \n \nCovered employee \npayroll (c) \n2,809,199 2,674,155 2,571,042 2,486,780 2,414,884 2,335,773 2,335,773 2,353,225 2,390,457 2,565,918 \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \n \nContributions as a percentage \nof covered employee \npayroll (b/c) \n10.2 % 10.5 10.2 10.5 11.3 15.4 18.4 22.0 24.9 24.4 \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) Schedules of Employers' and Nonemployers' Contributions - Defined Benefit Plans \nFor year ended June 30, 2017 (In thousands) \n63 \n \nGeorgia Judicial Retirement System \nGeorgia Military Pension Fund4 \nState Employees' Assurance Department Retired and Vested Inactive Members Trust Fund \n \nYear Ended \n6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 \n6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 \n6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 \n \nActuarially Determined Contribution \n(a) \n$ 2,395 1,703 2,600 1,932 2,083 2,279 2,375 4,261 7,623 6,684 \n1,103 1,323 1,434 1,282 1,521 1,703 1,892 1,893 1,990 2,018 \n-- -- -- -- 12,724 5,009 -- -- -- -- \n \nContributions in relation to the actuarially determined contribution \n(b) \n2,395 1,703 2,600 1,932 2,083 2,279 2,375 4,261 7,623 6,684 \n1,103 1,323 1,434 1,282 1,521 1,703 1,892 1,893 1,990 2,018 \n-- -- -- -- 12,724 5,009 -- -- -- -- \n \nContribution deficiency (excess) \n(a-b) \n-- -- -- -- -- -- -- -- -- -- \n-- -- -- -- -- -- -- -- -- -- \n-- -- -- -- -- -- -- -- -- -- \n \nCovered employee \npayroll (c) \n51,102 52,803 51,293 52,331 51,898 52,807 54,787 54,272 57,401 59,695 \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \nN/A N/A N/A N/A 2,085,902 1,855,185 N/A N/A N/A N/A \n \nContributions as a percentage \nof covered employee \npayroll (b/c) \n4.7 % 3.2 5.1 3.7 4.0 4.3 4.3 7.9 13.3 11.2 \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \nN/A N/A N/A N/A 1.0 \n-- N/A N/A N/A N/A \n \nThis data, except for annual covered payroll, was provided by the System's actuary. \n1 In 2009, an employer group within ERS did not contribute the full actuarially determined contribution. This employer is making additional contributions to repay this shortfall. 2 No statistics regarding covered payroll are available. Contributions are not based upon members' salaries but are simply $4.00 per member, per month, for nine months, each fiscal year if hired prior to July 1, 2012 and $10 per month, per member, for nine months, if hired after July 1, 2012. 3 The Georgia General Assembly made contributions in some years that were not required. 4 No statistics regarding covered payroll are available. Active and inactive plan member information is maintained by the Georgia Department of Defense. \nSee accompanying notes to required supplementary schedules and accompanying independent auditors' report. \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) \nSchedules of Employers' and Nonemployers' Net Pension/OPEB Liability and Related Ratios  Defined Benefit Plans (In thousands) \n \nJune 30, 2017 \n \nJune 30, 2016 June 30, 2015 June 30, 2014 \n \nEmployees' Retirement System: Total pension liability Plan fiduciary net position \nEmployers' and nonemployers' net pension liability \nPlan fiduciary net position as a percentage of the total pension liability Covered-employee payroll Employers' and nonemployers' net pension liability as a percentage of \ncovered-employee payroll \n \n$ \n \n17,159,634 \n \n13,098,299 \n \n17,103,937 12,373,567 \n \n$ \n \n4,061,335 \n \n4,730,420 \n \n76.33 % \n \n72.34 % \n \n$ \n \n2,565,918 \n \n2,390,457 \n \n158.28 % \n \n197.89 % \n \n17,019,362 12,967,964 \n4,051,398 \n76.20 % 2,353,225 \n172.16 % \n \n17,042,149 13,291,531 \n3,750,618 \n77.99 % 2,335,773 \n160.57 % \n \nPublic School Employees Retirement System: Total pension liability Plan fiduciary net position \n \n$ \n \n1,013,163 \n \n868,134 \n \nEmployers' and nonemployers' net pension liability \n \n$ \n \n145,029 \n \nPlan fiduciary net position as a percentage of the total pension liability Covered-employee payroll Employers' and nonemployers' net pension liability as a percentage of \ncovered-employee payroll \n \n85.69 % n/a \nn/a \n \n992,292 803,775 \n188,517 \n81.00 % n/a \nn/a \n \n946,200 823,150 \n123,050 \n87.00 % n/a \nn/a \n \n930,745 821,733 \n109,012 \n88.29 % n/a \nn/a \n \nLegislative Retirement System: \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployer's net pension asset \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability Covered-employee payroll Employer's net pension asset as a percentage of \ncovered-employee payroll \n \nGeorgia Judicial Retirement System: \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployers' and nonemployers' net pension asset \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \nCovered-employee payroll \n \n$ \n \nEmployers' and nonemployers' net pension asset as a \n \npercentage of covered-employee payroll \n \n25,898 32,981 (7,083) 127.35 % \nn/a n/a \n394,736 441,182 (46,446) \n111.77 % 59,695 (77.81) % \n \n26,142 30,975 (4,833) 118.49 % \nn/a n/a \n368,669 403,011 (34,342) 109.32 % 57,401 \n(59.83) % \n \n25,271 32,359 (7,088) 128.05 % \nn/a n/a \n357,081 404,852 (47,771) \n113.38 % 54,272 (88.02) % \n \n25,216 32,794 (7,578) 130.05 % \nn/a n/a \n350,443 400,790 (50,347) \n114.37 % 54,787 (91.90) % \n \n(continued) 64 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) \nSchedules of Employers' and Nonemployers' Net Pension/OPEB Liability and Related Ratios  Defined Benefit Plans (In thousands) \n \nJune 30, 2017 \n \nJune 30, 2016 June 30, 2015 June 30, 2014 \n \nGeorgia Military Pension Fund: \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployer's net pension liability \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability Covered-employee payroll Employer's net pension liability as a percentage of \ncovered-employee payroll \n \n40,085 20,711 \n19,374 \n51.67 % n/a \nn/a \n \n36,950 17,717 \n19,233 \n47.95 % n/a \nn/a \n \n33,343 16,712 \n16,631 \n50.12 % n/a \nn/a \n \n31,511 15,251 \n16,260 \n48.40 % n/a \nn/a \n \nState Employees' Assurance Department - Retired and Vested Inactive \n \nMembers Trust Fund: \n \nTotal OPEB liability \n \n$ \n \nPlan fiduciary net position \n \nEmployer's net OPEB asset \n \n$ \n \nPlan fiduciary net position as a percentage of the total OPEB liability \n \nCovered-employee payroll \n \n$ \n \nEmployer's net OPEB asset as a percentage of \n \ncovered-employee payroll \n \n861,346 1,121,251 \n(259,905) \n130.17 % 1,383,860 \n(18.78) % \n \n-- -- \n-- \n--% -- \n--% \n \n-- -- \n-- \n--% -- \n--% \n \n-- -- \n-- \n--% -- \n--% \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n65 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) \nSchedules of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability  Defined Benefit Plans (In thousands) \n \nEmployees' Retirement System: Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions \nNet change in total pension liability \nTotal pension liability-beginning \nTotal pension liability-ending (a) \nPlan fiduciary net position: Contributions-employer Contributions-nonemployer Contributions-member Administrative expense allotment Net investment income Benefit payments Administrative expense Refunds of contributions Other \nNet change in plan fiduciary net position \nPlan fiduciary net position-beginning \nPlan fiduciary net position-ending (b) \nNet pension liability-ending (a)-(b) \n \nJune 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 \n \n$ \n \n125,910 \n \n1,230,175 \n \n30,563 \n \n72,315 \n \n-- \n \n(1,394,283) \n \n(9,033) \n \n55,647 \n \n17,103,987 \n \n17,159,634 \n \n613,201 12,080 35,863 10 \n1,475,626 (1,394,283) \n(8,732) (9,033) \n-- \n724,732 \n12,373,567 \n \n13,098,299 \n \n$ \n \n4,061,335 \n \n143,043 1,225,650 \n-- (238) 70,890 (1,347,633) (7,087) \n84,625 \n17,019,362 \n17,103,987 \n583,082 12,484 31,961 10 \n141,292 (1,347,633) \n(8,506) (7,087) \n-- \n(594,397) \n12,967,964 \n12,373,567 \n4,730,420 \n \n145,045 1,227,846 \n-- (53,950) \n-- (1,334,278) \n(7,450) \n(22,787) \n17,042,149 \n17,019,362 \n505,668 12,495 33,713 10 \n474,147 (1,334,278) \n(7,872) (7,450) \n-- \n(323,657) \n13,291,531 \n12,967,964 \n4,051,398 \n \n150,075 1,224,380 \n-- -- -- (1,305,998) (8,757) \n59,700 \n16,982,449 \n17,042,149 \n418,807 10,945 32,423 -- \n2,021,748 (1,305,998) \n(7,440) (8,757) \n-- \n1,161,728 \n12,129,803 \n13,291,531 \n3,750,618 \n \n(continued) 66 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) \nSchedules of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability  Defined Benefit Plans (In thousands) \n \nPublic School Employees Retirement System: Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions \nNet change in total pension liability \nTotal pension liability-beginning \nTotal pension liability-ending (a) \nPlan fiduciary net position: Contributions-nonemployer Contributions-member Net investment income Benefit payments Administrative expense Refunds of contributions Other \nNet change in plan fiduciary net position \nPlan fiduciary net position-beginning \nPlan fiduciary net position-ending (b) \nNet pension liability-ending (a)-(b) \n \nJune 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 \n \n$ \n \n12,788 \n \n72,157 \n \n-- \n \n(3,665) \n \n-- \n \n(59,378) \n \n(1,031) \n \n20,871 \n \n992,292 \n \n1,013,163 \n \n26,277 2,084 \n97,715 (59,378) \n(1,308) (1,031) \n-- \n64,359 \n803,775 \n \n868,134 \n \n$ \n \n145,029 \n \n11,952 68,776 \n-- (9,483) 33,215 (57,903) \n(465) \n46,092 \n946,200 \n992,292 \n28,580 1,925 9,809 \n(57,903) (1,321) (465) -- \n(19,375) \n823,150 \n803,775 \n188,517 \n \n12,088 67,652 \n-- (6,858) \n-- (56,972) \n(455) \n15,455 \n930,745 \n946,200 \n28,461 1,800 \n30,129 (56,972) \n(1,545) (456) -- \n1,417 \n821,733 \n823,150 \n123,050 \n \n11,049 66,143 \n-- -- -- (56,189) (514) \n20,489 \n910,256 \n930,745 \n27,160 1,659 \n123,799 (56,189) \n(1,450) (514) -- \n94,465 \n727,268 \n821,733 \n109,012 \n \n(continued) 67 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) \nSchedules of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability  Defined Benefit Plans (In thousands) \n \nLegislative Retirement System: Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions \nNet change in total pension liability \nTotal pension liability-beginning \nTotal pension liability-ending (a) \nPlan fiduciary net position: Contributions-employer Contributions-member Net investment income Benefit payments Administrative expense Refunds of contributions Other \nNet change in plan fiduciary net position \nPlan fiduciary net position-beginning \nPlan fiduciary net position-ending (b) \nNet pension asset-ending (a)-(b) \n \nJune 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 \n \n$ \n \n357 \n \n1,892 \n \n-- \n \n(655) \n \n-- \n \n(1,763) \n \n(75) \n \n(244) \n \n26,142 \n \n25,898 \n \n-- 327 3,741 (1,763) (224) (75) \n-- \n2,006 \n30,975 \n \n32,981 \n \n$ \n \n(7,083) \n \n331 1,829 \n-- (465) 938 (1,724) \n(38) \n871 \n25,271 \n26,142 \n-- 328 363 (1,724) (313) (38) -- \n(1,384) \n32,359 \n30,975 \n(4,833) \n \n338 1,824 \n-- (325) \n-- (1,756) \n(26) \n55 \n25,216 \n25,271 \n-- 327 1,189 (1,756) (169) (26) -- \n(435) \n32,794 \n32,359 \n(7,088) \n \n344 1,799 \n-- -- -- (1,801) (30) \n312 \n24,904 \n25,216 \n45 282 4,969 (1,801) (152) (30) -- \n3,313 \n29,481 \n32,794 \n(7,578) \n \n(continued) 68 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) \nSchedules of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability  Defined Benefit Plans (In thousands) \n \nGeorgia Judicial Retirement System: Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions \nNet change in total pension liability \nTotal pension liability-beginning \nTotal pension liability-ending (a) \nPlan fiduciary net position: Contributions-employer Contributions-nonemployer Contributions-member Net investment income Benefit payments Administrative expense Refunds of contributions Other \nNet change in plan fiduciary net position \nPlan fiduciary net position-beginning \nPlan fiduciary net position-ending (b) \nNet pension asset-ending (a)-(b) \n \nJune 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 \n \n$ \n \n12,514 \n \n26,826 \n \n3,419 \n \n5,258 \n \n-- \n \n(21,784) \n \n(166) \n \n26,067 \n \n368,669 \n \n394,736 \n \n4,081 2,603 4,906 49,259 (21,784) \n(728) (166) \n-- \n38,171 \n403,011 \n \n441,182 \n \n$ \n \n(46,446) \n \n12,713 26,058 \n-- (3,603) (4,308) (19,011) \n(261) \n11,588 \n357,081 \n368,669 \n4,754 2,869 5,507 5,055 (19,011) \n(754) (261) \n-- \n(1,841) \n404,852 \n403,011 \n(34,342) \n \n7,751 25,566 \n-- (7,542) \n-- (18,365) \n(772) \n6,638 \n350,443 \n357,081 \n2,696 1,564 5,061 14,697 (18,365) \n(819) (772) \n-- \n4,062 \n400,790 \n404,852 \n(47,771) \n \n7,584 24,530 \n-- -- -- (17,441) (22) \n14,651 \n335,792 \n350,443 \n1,373 1,002 4,731 60,012 (17,441) \n(754) (22) -- \n48,901 \n351,889 \n400,790 \n(50,347) \n \n(continued) 69 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) \nSchedules of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability  Defined Benefit Plans (In thousands) \n \nGeorgia Military Pension Fund: Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions \nNet change in total pension liability \nTotal pension liability-beginning \nTotal pension liability-ending (a) \nPlan fiduciary net position: Contributions-employer Contributions-member Net investment income Benefit payments Administrative expense Refunds of contributions Other \nNet change in plan fiduciary net position \nPlan fiduciary net position-beginning \nPlan fiduciary net position-ending (b) \nNet pension liability-ending (a)-(b) \n \nJune 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 \n \n$ \n \n89 \n \n2,732 \n \n-- \n \n1,356 \n \n-- \n \n(1,042) \n \n-- \n \n3,135 \n \n36,950 \n \n40,085 \n \n2,018 -- \n2,262 (1,042) \n(244) -- -- \n2,994 \n17,717 \n \n20,711 \n \n$ \n \n19,374 \n \n73 2,465 \n-- 950 1,082 (963) \n-- \n3,607 \n33,343 \n36,950 \n1,990 -- 240 \n(963) (262) \n-- -- \n1,005 \n16,712 \n17,717 \n19,233 \n \n73 2,330 \n-- 326 \n-- (897) \n-- \n1,832 \n31,511 \n33,343 \n1,893 -- \n585 (896) (121) \n-- -- \n1,461 \n15,251 \n16,712 \n16,631 \n \n73 2,223 \n-- -- -- (841) -- \n1,455 \n30,056 \n31,511 \n1,892 -- \n2,179 (841) (110) -- -- \n3,120 \n12,131 \n15,251 \n16,260 \n \n(continued) 70 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) \nSchedules of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability  Defined Benefit Plans (In thousands) \n \nState Employees' Assurance Department Retired and Vested Inactive Members Trust Fund: \nTotal OPEB liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions \nNet change in total OPEB liability \nTotal OPEB liability-beginning \nTotal OPEB liability-ending (a) \nPlan fiduciary net position: Contributions  employer Insurance premiums  member Net investment income Benefit payments Administrative expense Refunds of contributions Other \nNet change in plan fiduciary net position \nPlan fiduciary net position-beginning \nPlan fiduciary net position-ending (b) \nNet OPEB asset-ending (a)-(b) \n \nJune 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 \n \n$ \n \n3,959 \n \n-- \n \n-- \n \n-- \n \n61,076 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n(36,058) \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n28,977 \n \n-- \n \n-- \n \n-- \n \n832,369 \n \n-- \n \n-- \n \n-- \n \n861,346 \n \n-- \n \n-- \n \n-- \n \n1 \n \n-- \n \n-- \n \n-- \n \n3,793 \n \n-- \n \n-- \n \n-- \n \n125,550 \n \n-- \n \n-- \n \n-- \n \n(36,058) \n \n-- \n \n-- \n \n-- \n \n(576) \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n92,710 \n \n-- \n \n-- \n \n-- \n \n1,028,541 \n \n-- \n \n-- \n \n-- \n \n1,121,251 \n \n-- \n \n-- \n \n-- \n \n$ \n \n(259,905) \n \n-- \n \n-- \n \n-- \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedules and accompanying independent auditors' report. \n \n71 \n \n Required Supplementary Information (UNAUDITED) \nSchedule of Investment Returns For the year ended June 30, 2017 \n \nFinancial Section \n \n2017 \n \n2016 \n \nPooled Investment Fund: Annual money-weighted rate of return, net of investment expense \n \n2.9 % \n \n(7.2) % \n \nSchedule is intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n2015 \n(5.3) % \n \n2014 \n6.0 % \n \n72 \n \n Financial Section \n \nNotes to Required Supplementary Information (UNAUDITED) \nJune 30, 2017 \n \n(1) \n \nSchedule of Employers' and Nonemployers' Contributions  Defined Benefit Plans \n \nThis schedule presents the required contributions and the percent of required contributions actually contributed. \n \n(2) \n \nSchedule of Employers' and Nonemployers' Net Pension/OPEB Liability and Related Ratios  Defined Benefit Plans \n \nThe components of the net pension/OPEB liability as of the fiscal year end and the fiduciary net position as a percentage of \n \nthe total pension/OPEB liability as of that date are presented in this schedule. This trend information will be accumulated to \n \ndisplay a 10-year presentation. \n \n(3) \n \nSchedule of Changes in Employers' and Nonemployers' Net Pension/OPEB Liability  Defined Benefit Plans \n \nNet pension/OPEB liability, which is measured as total pension/OPEB liability less the amount of the fiduciary net position, is \n \npresented in this schedule. This trend information will be accumulated to display a 10-year presentation. \n \n(4) \n \nSchedule of Investment Returns \n \nThis schedule presents historical trend information about the annual money-weighted rate of return on plan investments, net \n \nof plan investment expense. This trend information will be accumulated to display a 10-year presentation. \n \n(5) \n \nIndividual Plan Information \n \nThis note provides information about changes of benefit terms, changes of assumptions, and methods and assumptions used \n \nin calculations of actuarially determined contributions. \n \n(a) Employees' Retirement System Changes of benefit terms  A new benefit tier was added for members joining the System on and after July 1, 2009. A onetime 3% payment was granted to certain retirees and beneficiaries effective July 2016. \nChanges of assumptions  On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, withdrawal, and salary increases. \n \n(b) Public School Employees Retirement System Changes of benefit terms  The member contribution rate was increased from $4 to $10 per month for members joining the \nSystem on or after July 1, 2012. \n \nChanges of assumptions  On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, and withdrawal. \n \n(c) Legislative Retirement System Changes of benefit terms  none \n \nChanges of assumptions  On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, and withdrawal. \n \n(d) Georgia Judicial Retirement System Changes of benefit terms - Spouses' benefits were changed for members joining the System on and after July 1, 2012. A 2% \ncost-of-living adjustment was granted to certain retired members and beneficiaries effective July 1, 2016. \n \nChanges of assumptions - On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, withdrawal, and salary increases. \n \n(continued) 73 \n \n Financial Section \n \nNotes to Required Supplementary Information (UNAUDITED) \nJune 30, 2017 \n \n(e) Georgia Military Pension Fund Changes of benefit terms  none \nChanges of assumptions  On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, and withdrawal. \nThe following actuarial methods and assumptions were used to determine the most recent contribution rates reported in those schedules: \n \nActuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases Investment rate of return \n \nERS \nEntry age Level dollar, closed 22.6 years 5-year smoothed market 3.00% 5.45-9.25%, including inflation 7.50% net of pension plan investment expense, including inflation \n \nPSERS \nEntry age Level dollar, closed 23.9 years 5-year smoothed market 3.00% n/a 7.50% net of pension plan investment expense, including inflation \n \nLRS \nEntry age Level dollar, closed n/a 5-year smoothed market 3.00% n/a 7.50% net of pension plan investment expense, including inflation \n \nActuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases Investment rate of return \n \nGJRS \nEntry age Level percent of pay, closed 19.5 years 5-year smoothed market 3.00% 6.00%, including inflation 7.50% net of pension plan investment expense, including inflation \n \nGMPF \nEntry age Level dollar, closed 19 years 5-year smoothed market 3.00% n/a 7.50% net of pension plan investment expense, including inflation \n \nActuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases: \nERS GJRS LRS Investment rate of return \n \nSEAD - OPEB \nProjected unit credit Level dollar, open n/a Market value of assets 3.00% \n5.45-9.25%, including inflation 6.00%, including inflation n/a 7.50% net of pension plan investment expense, including inflation \n \n74 \n \n Additional Information \nStatement of Changes in Assets and Liabilities - Survivors Benefit Fund Year ended June 30, 2017 (In thousands) \n \nFinancial Section \n \nBalance at June 30, 2016 \n \nAssets: \n \nCash and cash equivalents \n \n$ \n \nEquity in pooled investment fund \n \n93 120,871 \n \nTotal assets \n \n120,964 \n \nAdditions Deductions \n \n-- \n \n1 \n \n15,080 \n \n-- \n \n15,080 \n \n1 \n \nBalance at June 30, 2017 \n92 135,951 136,043 \n \nLiablities: Due to other funds/plans \nTotal liabilities \n \n120,964 \n \n$ \n \n120,964 \n \n15,080 15,080 \n \n1 \n \n136,043 \n \n1 \n \n136,043 \n \nSee accompanying independent auditors' report. \n \n(continued) 75 \n \n Financial Section \n \nAdditional Information \n \nSchedule of Administrative Expenses - Contributions and Expenses Year ended June 30, 2017 (with comparative amounts for the year ended June 30, 2016) (In thousands) \n \nContributions from fiduciary funds: Employees' Retirement System Public School Employees Retirement System Legislative Retirement System Georgia Judicial Retirement System Georgia Military Pension Fund Superior Court Judges Retirement Fund District Attorneys Retirement Fund Georgia Defined Contribution Plan 401(k) Plan 457 Plan State Employees' Assurance Department - OPEB \nTotal fiduciary funds \nContributions from proprietary fund: State Employees' Assurance Department Active Members Fund \nTotal contributions \nExpenses: Personal services: Salaries and fringes Retirement contributions FICA Health insurance Miscellaneous \nCommunications: Postage Publications and printing Telecommunications Travel \nProfessional services: Accounting services Computer services Contracts Actuarial services Medical services Professional fees Legal services \nManagement fees: Building maintenance \nOther services and charges: Temporary services Supplies and materials Repairs and maintenance Courier services Depreciation Miscellaneous Office equipment \nTotal expenses \nNet income \n \n2017 \n \n2016 \n \n$ \n \n8,732 $ \n \n8,506 \n \n1,308 \n \n1,321 \n \n224 \n \n313 \n \n728 \n \n754 \n \n244 \n \n262 \n \n1 \n \n4 \n \n4 \n \n1 \n \n785 \n \n766 \n \n3,096 \n \n2,832 \n \n789 \n \n820 \n \n576 \n \n599 \n \n16,487 \n \n16,178 \n \n64 16,551 \n \n67 16,245 \n \n5,256 1,251 \n376 1,603 \n57 \n8,543 \n279 16 60 14 \n369 \n730 1,034 3,298 \n277 133 291 \n40 \n5,803 \n \n617 \n \n745 78 21 3 \n304 65 3 \n \n1,219 \n \n16,551 \n \n$ \n \n \n \n5,074 1,211 \n360 1,546 \n73 \n8,264 \n245 14 64 14 \n337 \n709 792 3,175 428 180 260 \n39 \n5,583 \n617 \n966 77 20 3 \n320 55 3 \n1,444 16,245 \n \n \nSee accompanying independent auditors' report. \n76 \n \n Financial Section \n \nAdditional Information \nSchedule of Investment Expenses Year ended June 30, 2017 (with comparative amounts for the year ended June 30, 2016) \n \nInvestment advisory and custodial fees Miscellaneous \nTotal investment expenses \n \n2017 \n \n2016 \n \n$ \n \n6,753,247 $ \n \n6,070,210 \n \n12,584,983 \n \n13,805,757 \n \n$ \n \n19,338,630 $ \n \n19,875,967 \n \nSee accompanying independent auditors' report. \n \n77 \n \n Investment Section \n \nInvestment Section \n \nERS \n \nGMPF \n \nGJRS \n \nERSGA \n \nLRS \n \nPSR \n \nGDCP \n \nPSERS \n \nE RSGA \n \nServing those who serve Georgia \n \nEmployees' Retirement System of Georgia \n \n8 \n \n78 \n \n Investment Section \n \nInvestment Overview \nThere has certainly been a lot of news and noise during the past year. Throughout it all, economic growth as measured by real GDP improved modestly to a 2.2% pace. Global growth broadened out with Europe and Japan showing additional signs of improving health. A combination of improving economic growth, low inflation and low interest rates combined to boost U.S. equity returns to over 18% for the fiscal year. \nWe continually emphasize that the pension plan has a long-term investment horizon, and that short-term concerns should not drive the investment decisions. The System continues to invest in a mix of liquid, high-quality bonds and stocks. In addition, the System continues to build its private markets program in a disciplined manner. These types of investments allow the System to participate in rising markets while moderating the risks on the downside. A high-quality balanced fund has proven to be a successful strategy in a variety of markets over long periods of time. \nAs in previous years, the bias to quality was a primary goal and was successfully met. \"Conservation of Capital\" and \"Conservatism\" remain the guiding principles for investment decisions. The Board of Trustees continues to use a diversified portfolio to accomplish these objectives. \nThe domestic economy continued to grow during the fiscal year. Employment growth averaged a healthy 185,000 new jobs per month. Industrial production rebounded, inflation was contained and housing prices improved. Although one can find exceptions, foreign economies continued to improve, in large part due to easy central bank policies in Japan and Europe. In contrast, the Federal Reserve has begun to raise interest rates. \nStudies undertaken to evaluate the investment returns of pension funds over very long time horizons indicate that the asset allocation decision has the largest impact on the fund's returns. Although the returns for the various asset categories vary from year to year, over the long term equities typically outperform fixed income and cash by a very wide margin. For that reason, the System has generally maintained a significant equity exposure with the remainder of the fund invested in fixed-income securities designed to generate income and preserve capital. \n \nReturns for one-, three-, five-, ten-, and twenty-year periods are presented in this section. Longer time periods, such as the twenty-year period, allow for more valid evaluation of returns, both in absolute terms and relative to an asset class index, by reducing emphasis on the short-term volatility of markets. The Daily Valuation Method, a time-weighted rate of return, was used to calculate returns in a manner consistent with the CFA Institute's objectives as stated in its publication \"Global Investment Performance Standards Handbook,\" third edition. \nThe return for the S\u0026P 500 was 17.9%. U.S. small-cap and midcap stocks outperformed large-cap stocks last year. The S\u0026P MidCap 400 and the S\u0026P SmallCap 600 indexes had returns of 18.6% and 22.5%, respectively. The Financial and Technology sectors had the highest returns for the 12-month period posting returns of over 28%, while Energy and Telecom Services were flat. \nInternational markets also had strong returns. The MSCI EAFE Index returned 20.3% and the MSCI Emerging Market Index had a return of 23.7%. The dollar was down fractionally for the fiscal year. \nInterest rates increased across the board during the first six months of the fiscal year and then flattened out resulting in negative bond returns. The total return on the 10-year Treasury Note was (5.6%) and the 30-year Treasury Bond had a (9.1%) return. The return on short-term Treasury bills was 0.4%. \nWe look at two fixed-income indexes to measure the bond market's performance. The Barclays Government / Credit Index had a return of (0.4%). It is a broad index containing corporate and government sponsored bonds as well as Treasuries. The Citigroup Treasury / Sponsored / AAA/AA had a return of (1.9%) and is a broad index containing higher-rated corporate bonds as well as Treasuries and Government securities. The spread between corporate bonds and Treasury bonds tightened during the year leading to relatively better performance in corporate bonds. \nIn 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.\" \nPrepared by the Division of Investment Services \n \n79 \n \n Pooled Investment Fund \nAs of June 30, 2017 (dollar amounts in thousands) \nEmployees' Retirement System (ERS) Public School Employees Retirement System (PSERS) Legislative Retirement System (LRS) Georgia Judicial Retirement System (GJRS) State Employees' Assurance Department (SEAD) - Active State Employees' Assurance Department (SEAD) - OPEB Survivors Benefit Fund (SBF) Georgia Military Pension Fund (GMPF) \nTotal \nRates of Return \n \nInvestment Section \n \n$ \n \n13,047,409 \n \n868,952 \n \n33,039 \n \n440,443 \n \n267,194 \n \n1,120,853 \n \n135,951 \n \n20,682 \n \n$ \n \n15,934,523 \n \n1 year 3 year 5 year 10 year 20 year \n \nEquities \n19.2 % 7.4 % \n12.8 % 6.0 % 6.5 % \n \nS\u0026P 1500 \n18.1 % 9.5 % \n14.7 % 7.3 % 7.5 % \n \nMSCI ACWI ex US \n \nFixed Income \n \n20.5 % \n \n(1.0)% \n \n0.8 % \n \n2.2 % \n \n7.2 % \n \n1.8 % \n \n1.1 % \n \n4.4 % \n \n-- \n \n5.6 % \n \nBarclay's Govt/Credit \n(0.4)% 2.6 % 2.3 % 4.6 % 5.3 % \n \n1 Month T-Bills \n \nTotal Portfolio \n \n0.4 % \n \n12.4 % \n \n0.2 % \n \n5.8 % \n \n0.1 % \n \n9.5 % \n \n0.4 % \n \n6.2 % \n \n1.9 % \n \n6.6 % \n \nNote: Time-weighted rates of return are calculated using the Daily Valuation Method based on market rates of return. 80 \n \nCPI \n1.6 % 0.9 % 1.3 % 1.6 % 2.1 % \n \n Asset Allocation at Fair Value \n \nInvestment Section \n \nInvestment Summary \nAsset Allocation as of June 30 (in percentages) \nEquities Fixed Income Mutual and Commingled Funds Private Equity Total \n \n2017 \n63.9% 27.1 \n8.2 0.8 \n100% \n \n2016 \n62.3 29.5 \n7.6 0.6 \n \n2015 \n65.3 27.2 \n7.2 0.3 \n \n2014 \n67.2 25.6 \n7.1 0.1 \n \n2013 \n68.1 25.0 \n6.9 -- \n \n2012 \n65.9 27.3 \n6.8 -- \n \n100 \n \n100 \n \n100 \n \n100 \n \n100 \n \nAsset Allocation as of June 30 (in millions) \nEquities Fixed Income Mutual and Commingled Funds Private Equity Total \n \n2017 \n$ 11,030 4,668 1,421 134 \n \n2016 \n10,005 4,733 1,226 94 \n \n2015 \n10,915 4,543 1,204 52 \n \n2014 \n11,372 4,314 1,209 \n22 \n \n2013 \n10,374 3,811 1,057 -- \n \n2012 \n9,600 3,972 \n995 -- \n \n$ 17,253 16,058 16,714 16,917 15,242 14,567 \n \n81 \n \n Schedule of Fees and Commissions \nFor the Year Ended June 30, 2017 \nInvestment Advisors' Fees:* U.S. Equity International Equity Fixed Income \nInvestment Commissions: U.S. Equity International Equity \nTransaction Fees: Miscellaneous:* \nTotal Fees and Commissions \n*Amount included in total investment expenses shown on page 77. \n \nInvestment Section \n \n$ \n \n2,966,717 \n \n3,317,678 \n \n-- \n \n1,468,298 1,620,017 \n464,919 17,594,551 \n \n$ \n \n27,432,180 \n \n82 \n \n Investment Section \n \nTwenty Largest Equity Holdings  \nAs of June 30, 2017 \n \nShares \n1,373,526 192,541 \n2,340,894 130,201 823,500 874,660 \n1,351,113 1,128,388 \n532,890 1,488,843 \n835,300 3,024,473 2,137,694 \n821,688 472,500 343,119 2,339,970 1,414,592 604,119 1,633,794 \n \nCompany \nApple Inc. Alphabet Inc. Microsoft Corp. Amazon.Com Inc. Facebook, Inc. Johnson \u0026 Johnson Exxon Mobil Corp. JPMorgan Chase \u0026 Co. Berkshire Hathaway Inc. Wells Fargo \u0026 Co. Visa Inc. Bank of America Corp. Pfizer Inc. Procter \u0026 Gamble Co. Alibaba Group Holding Ltd. UnitedHealth Group General Electric Co. Verizon Communications Inc. Chevron Corp. AT\u0026T Inc. \n \nTop 20 Equities Remaining Equities \n \nTotal Equities \n \nA complete listing is available upon written request, subject to restrictions of O.C.G.A. Section 47-1-14. \n \nFair Value $ 197,815,215 \n177,127,728 161,357,823 126,034,568 124,332,030 115,708,771 109,075,352 103,134,663 \n90,255,579 82,496,791 78,334,434 73,373,715 71,805,141 71,610,109 66,575,250 63,621,125 63,202,590 63,175,679 63,027,735 61,643,049 \n$ 1,963,707,347 9,066,603,653 \n$ 11,030,311,000 \n \n83 \n \n Investment Section \n \nFixed Income Holdings* \nAs of June 30, 2017 \n \nIssuer \n \nYear of Maturity \n \nUS TREAS. NOTE US TREAS. NOTE US TREAS. NOTE US TREAS. NOTE GENERAL ELECTRIC CO US TREAS. NOTE US TREAS. BOND US TREAS. BOND US TREAS. NOTE INTEL CORP GENERAL ELECTRIC CAP CORP US TREAS. NOTE US TREAS. NOTE US TREAS. NOTE US TREAS. NOTE US TREAS. NOTE US TREAS. NOTE US TREAS. NOTE EXXON MOBIL CORP BP CAPITAL MARKETS SHELL INTERNATIONAL FIN COMCAST-NBC PRAXAIR INC EXXON MOBIL CORP PROCTER \u0026 GAMBLE CO PRAXAIR INC MICROSOFT CORP UNITED TECHNOLOGIES CORP CISCO SYSTEMS INC US TREAS. NOTE UNITED PARCEL SERVICE AT\u0026T INC ONTARIO (PROVINCE OF) US TREAS. NOTE INTEL CORP SCHLUMBERGER INVESTMENT MICROSOFT CORP APPLE INC COCA COLA CO PFIZER INC ILLINOIS TOOL WORKS INC US TREAS. BOND US TREAS. BOND COCA COLA CO US TREAS. NOTE US TREAS. BOND US TREAS. NOTE US TREAS. NOTE MICROSOFT CORP \n \n2024 2017 2023 2021 2022 2024 2028 2039 2019 2024 2026 2019 2019 2024 2022 2020 2024 2019 2021 2020 2018 2018 2018 2019 2018 2019 2025 2026 2026 2021 2021 2017 2017 2022 2021 2021 2035 2021 2018 2018 2019 2046 2046 2020 2019 2045 2022 2022 2017 \n \nERS Fixed Income Securities Defined Contribution Fixed Income Securities \n \nInterest Rate \n2.2500% 1.8750 1.5000 2.1250 2.7000 2.3750 5.2500 3.5000 1.1250 2.7000 5.5500 1.6250 1.6250 2.1250 1.8750 1.3750 2.0000 1.6250 2.2220 2.5210 1.9000 1.6620 1.2000 1.8190 1.6000 1.9000 2.7000 2.6500 2.5000 3.1250 3.1250 1.4000 1.1000 1.6250 3.3000 3.3000 3.5000 2.2500 1.6500 1.5000 1.9500 2.5000 2.2500 2.4500 1.0000 2.8750 1.7500 1.7500 0.8750 \n \nPar Value \n \n$ \n \n303,000,000 \n \n251,000,000 \n \n195,000,000 \n \n153,000,000 \n \n141,000,000 \n \n133,000,000 \n \n102,000,000 \n \n113,000,000 \n \n125,000,000 \n \n120,000,000 \n \n90,000,000 \n \n102,000,000 \n \n102,000,000 \n \n100,000,000 \n \n100,000,000 \n \n100,000,000 \n \n100,000,000 \n \n97,000,000 \n \n96,000,000 \n \n95,000,000 \n \n96,000,000 \n \n96,000,000 \n \n96,000,000 \n \n95,000,000 \n \n95,000,000 \n \n95,000,000 \n \n94,000,000 \n \n94,000,000 \n \n95,000,000 \n \n77,000,000 \n \n76,000,000 \n \n77,000,000 \n \n77,000,000 \n \n64,000,000 \n \n58,000,000 \n \n58,000,000 \n \n58,000,000 \n \n58,000,000 \n \n58,000,000 \n \n58,000,000 \n \n48,000,000 \n \n48,000,000 \n \n49,000,000 \n \n39,000,000 \n \n34,000,000 \n \n30,000,000 \n \n30,000,000 \n \n30,000,000 \n \n20,000,000 \n \n$ 4,521,000,000 85,000,000 \n \nTotal ERS and Defined Contribution Fixed Income Securities \n \n$ 4,606,000,000 \n \n*A complete listing is available upon written request, subject to restrictions of O.C.G.A. Section 47-1-14. 84 \n \nFair Value \n \n$ \n \n304,669,530 \n \n251,481,920 \n \n189,653,100 \n \n155,151,180 \n \n143,415,330 \n \n135,025,590 \n \n131,308,680 \n \n127,668,530 \n \n124,546,250 \n \n119,668,800 \n \n105,904,800 \n \n102,453,900 \n \n102,442,680 \n \n100,121,000 \n \n99,805,000 \n \n99,684,000 \n \n99,254,000 \n \n97,443,290 \n \n96,629,760 \n \n96,323,350 \n \n96,265,920 \n \n96,167,040 \n \n95,731,200 \n \n95,375,250 \n \n95,172,900 \n \n95,170,050 \n \n93,366,440 \n \n91,397,140 \n \n91,097,400 \n \n81,012,470 \n \n78,923,720 \n \n76,936,090 \n \n76,934,550 \n \n63,137,280 \n \n60,647,700 \n \n59,934,300 \n \n58,478,500 \n \n58,384,540 \n \n58,142,680 \n \n58,038,860 \n \n48,351,840 \n \n44,656,800 \n \n43,139,110 \n \n39,665,730 \n \n33,703,860 \n \n30,167,700 \n \n29,872,200 \n \n29,845,200 \n \n19,972,400 \n \n$ 4,582,339,560 85,473,600 \n \n$ 4,667,813,160 \n \n AFicntaunacriiaall SSeeccttiioonn \n \nActuarial Section \n \nERS \n \nGMPF \n \nGJRS \n \nERSGA \n \nLRS \n \nPSR \n \nGDCP \n \nPSERS \n \nE RSGA \n \nServing those who serve Georgia \n \nEmployees' Retirement System of Georgia \n \n85 \n \n Actuarial Section \n \nERS April 20, 2017 \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nBoard of Trustees Employees' Retirement System of Georgia Two Northside 75, Suite 300 Atlanta, GA 30318-7701 \n \nAttn: Mr. James Potvin, Executive Director \n \nMembers of the Board: \nSection 47-2-26 of the law governing the operation of the Employees' Retirement System of Georgia provides that the actuary shall make annual valuations of the contingent assets and liabilities of the Retirement System on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2016. The report indicates that annual employer contributions at the rate of 19.91% of compensation for Old Plan Members, 24.66% of compensation for New Plan Members, and 21.66% of compensation for GSEPS Members for the fiscal year ending June 30, 2019 are sufficient to support the benefits of the System. \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2016 session of the General Assembly. The valuation also reflects the one-time 3% payment to certain retirees and beneficiaries effective July 2016. \nThe System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level as \n \na percent of payroll. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a level percent of payroll. Gains and losses are reflected in the total unfunded accrued liability which is being amortized on a level dollar basis in accordance with the funding policy adopted by the Board. \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports. \nWe have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report: \n Summary of Actuarial Assumptions  Schedule of Active Members  Schedule of Funding Progress  Schedule of Retirees Added to and Removed from Rolls  Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \nThe System is being funded in conformity with the minimum funding standard set forth in code section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has \n \n(continued) 86 \n \n Actuarial Section \n \nexperience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the System and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System. \n \ndemographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \n \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or \n \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \nSincerely yours, \n \nEdward A. Macdonald, ASA, FCA MAAA President \n \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n \nCathy Turcot Principal and Managing Director \n \n87 \n \n Actuarial Section \n \nPSERS April 20, 2017 \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nBoard of Trustees Georgia Public School Employees Retirement System Two Northside 75, Suite 300 Atlanta, GA 30318-7701 \n \nAttn: Mr. James Potvin, Executive Director \n \nMembers of the Board: \nSection 47-4-60 of the law governing the operation of the Georgia Public School Employees Retirement System provides that the employer contribution shall be actuarially determined and approved by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2016. Based on a monthly benefit accrual rate of $14.75, the valuation indicates that annual employer contributions of $27,092,000 or $777.04 per active member for the fiscal year ending June 30, 2019 are sufficient to support the benefits of the System. \nThe results of the valuation reflect that the Board granted a 2% cost-of-living adjustment (COLA) on July 1, 2016 to certain retired members and beneficiaries rather than the 1.50% anticipated cost-of-living adjustments to retired members on July 1, 2016 and on January 1, 2017. \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2016 session of the General Assembly. \nThe System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for financial reporting purposes meet the parameters set by \n \nActuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level as a dollar per active member. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a dollar per active member. Gains and losses are reflected in the total unfunded accrued liability which is being amortized as a level dollar per active member in accordance with the funding policy adopted by the Board. \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports. \nWe have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report: \n Summary of Actuarial Assumptions  Schedule of Active Members  Schedule of Funding Progress  Schedule of Retirees Added to and Removed from Rolls  Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \nThe System is currently being funded in conformity with the minimum funding standard set forth in Code Section 47-2010 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is currently operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated. \n \n(continued) 88 \n \n Actuarial Section \n \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the System and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the \n \neconomic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \nSincerely yours, \n \nEdward A. Macdonald, ASA, FCA MAAA President \n \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n \nCathy Turcot Principal and Managing Director \n \n89 \n \n Actuarial Section \n \nGJRS April 20, 2017 \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nBoard of Trustees Georgia Judicial Retirement System Two Northside 75, Suite 300 Atlanta, GA 30318-7701 \n \nAttn: Mr. James Potvin, Executive Director \n \nMembers of the Board: \n \nSection 47-23-21 of the law governing the operation of the Georgia Judicial Retirement System provides that the actuary shall make annual valuations of the contingent assets and liabilities of the Retirement System on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2016. The report indicates that annual employer contributions at the rate of 7.83% of compensation for the fiscal year ending June 30, 2019 are sufficient to support the benefits of the System. \nThe results of the valuation reflect the 2% cost-of-living adjustment (COLA) granted to certain retirees and beneficiaries effective July 1, 2016. \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2016 session of the General Assembly. \nThe System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level \n \nas a percent of payroll. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a level percent of payroll. Gains and losses are reflected in the total unfunded accrued liability which is negative and being amortized as a level percent of payroll in accordance with the funding policy adopted by the Board. \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports. \nWe have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report: \n Summary of Actuarial Assumptions  Schedule of Active Members  Schedule of Funding Progress  Schedule of Retirees Added to and Removed from Rolls  Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \nThe System is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated. \nThis is to certify that the independent consulting actuary is a \n \n(continued) 90 \n \n Actuarial Section \n \nmember of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the System and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or \n \ndemographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \nSincerely yours, \n \nEdward A. Macdonald, ASA, FCA MAAA President \n \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n \nCathy Turcot Principal and Managing Director \n \n91 \n \n Actuarial Section \n \nLRS April 20, 2017 \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nBoard of Trustees Legislative Retirement System of Georgia Two Northside 75, Suite 300 Atlanta, GA 30318-7701 \n \nAttn: Mr. James Potvin, Executive Director \n \nMembers of the Board: \nSection 47-6-22 of the law governing the operation of the Georgia Legislative Retirement System provides that the actuary shall make periodic valuations of the contingent assets and liabilities of the Retirement System on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2016. The report indicates that no annual employer contributions for the fiscal year ending June 30, 2019 are required to support the benefits of the System. \n \nActuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level as a dollar per active member. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a level dollar per active member. Gains and losses are reflected in the total unfunded accrued liability which is negative and being amortized as a level dollar per active member in accordance with the funding policy adopted by the Board. \n \nThe results of the valuation reflect that the Board did not grant the anticipated cost-of-living increases (COLAs) to retired members on July 1, 2016 and on January 1, 2017. In addition, the results of the valuation reflect the one-time payment to certain retirees and beneficiaries effective July 2016. \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2016 session of the General Assembly. \nThe System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for financial reporting purposes meet the parameters set by \n \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports. \nWe have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report: \n Summary of Actuarial Assumptions  Schedule of Active Members  Schedule of Funding Progress  Schedule of Retirees Added to and Removed from Rolls  Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \nThe System is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be \n \n(continued) 92 \n \n Actuarial Section \n \nsafely anticipated. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the \n \nfollowing: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \nSincerely yours, \n \nEdward A. Macdonald, ASA, FCA MAAA President \n \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n \nCathy Turcot Principal and Managing Director \n \n93 \n \n Actuarial Section \n \nGMPF April 20, 2017 \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nBoard of Trustees Georgia Military Pension Fund Two Northside 75, Suite 300 Atlanta, GA 30318-7701 \n \nAttn: Mr. James Potvin, Executive Director \n \nMembers of the Board: \n \nSection 47-24-22 of the law governing the operation of the accrued liability which is being amortized as a level dollar per \n \nGeorgia Military Pension Fund provides that the actuary shall active member in accordance with the funding policy adopted by \n \nmake periodic valuations of the contingent assets and liabilities the Board. \n \nof the Pension Fund on the basis of regular interest and the \n \ntables last adopted by the Board of Trustees. We have submitted The Plan and the employers are required to comply with the \n \nthe report giving the results of the actuarial valuation of the Fund financial reporting requirements of GASB Statements No. 67 and \n \nprepared as of June 30, 2016. The report indicates that annual 68. The necessary disclosure information is provided in separate \n \nemployer contributions of $2,537,272 or $183.20 per active supplemental reports. \n \nmember for the fiscal year ending June 30, 2019 are sufficient to \n \nsupport the benefits of the Fund. \n \nWe have provided the following information and supporting \n \nschedules for the Actuarial Section of the Comprehensive Annual \n \nIn preparing the valuation, the actuary relied on data provided Financial Report: \n \nby the Fund. While not verifying data at the source, the actuary \n \nperformed tests for consistency and reasonableness. Our firm,  Summary of Actuarial Assumptions \n \nas actuary, is responsible for all of the actuarial trend data in  Schedule of Active Members \n \nthe financial section of the annual report and the supporting  Schedule of Funding Progress \n \nschedules in the actuarial section of the annual report. \n \n Schedule of Retirees Added to and Removed from Rolls \n \n Analysis of Change in Unfunded Accrued Liability \n \nIn our opinion, the valuation is complete and accurate, and the  Solvency Test Results \n \nmethodology and assumptions are reasonable as a basis for \n \nthe valuation. The valuation takes into account the effect of all The Fund is being funded in conformity with the minimum \n \namendments to the Fund enacted through the 2016 session of funding standard set forth in Code Section Section 47-20-10 of \n \nthe General Assembly. \n \nthe Public Retirement Systems Standards Law and the funding \n \npolicy adopted by the Board. In our opinion the Fund is operating \n \nThe Fund is funded on an actuarial reserve basis. The actuarial on an actuarially sound basis. Assuming that contributions to \n \nassumptions recommended by the actuary and adopted by the the Fund are made by the employer from year to year in the \n \nBoard are in the aggregate reasonably related to the experience future at the rates recommended on the basis of the successive \n \nunder the Fund and to reasonable expectations of anticipated actuarial valuations, the continued sufficiency of the retirement \n \nexperience under the Fund. The assumptions and methods used fund to provide the benefits called for under the Fund may be \n \nfor financial reporting purposes meet the parameters set by safely anticipated. \n \nActuarial Standards of Practice (ASOPs). The funding objective \n \nof the plan is that contribution rates over time will remain level This is to certify that the independent consulting actuary is \n \nas a dollar per active member. The valuation method used is the a member of the American Academy of Actuaries and has \n \nentry age normal cost method. The normal contribution rate to experience is performing valuations for public retirement systems, \n \ncover current cost has been determined as a dollar per active that the valuation was prepared in accordance with principles of member. Gains and losses are reflected in the total unfunded practice prescribed by the Actuarial Standards Board, and that \n \nthe actuarial calculations were performed by qualified actuaries \n \n(continued) 94 \n \n Actuarial Section \n \nin accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the Fund. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these \n \nmeasurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \nSincerely yours, \n \nEdward A. Macdonald, ASA, FCA MAAA President \n \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n \nCathy Turcot Principal and Managing Director \n \n95 \n \n Actuarial Section \n \nSEAD Post-Retirement (SEAD-OPEB) \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nApril 20, 2017 Board of Trustees Employees' Retirement System of Georgia Two Northside 75, Suite 300 Atlanta, GA 30318-7701 \n \nAttn: Mr. James Potvin, Executive Director \n \nMembers of the Board: \n \nChapters 47-2 and 47-19 of the Code of Georgia which govern the operation of the Georgia Employees' Group Term Life Insurance Plan provide that the actuary shall make periodic valuations of the contingent assets and liabilities of the Insurance Plan on the basis of regular interest and the tables last adopted by the Board of Trustees. In this report, we have determined liabilities for life insurance benefits payable upon death after retirement (PostRetirement). \nIn accordance with GASB 43 and 45, we have determined the liabilities for life insurance benefits payable upon death after retirement. We have submitted the report giving the results of the valuation of the Plan prepared as of June 30, 2016. The report indicates, for post-retirement benefits, there is no employer annual required contribution for the fiscal year ending June 30, 2019. \nSince the previous valuation, the funding method used for this valuation has been changed from the unit credit actuarial cost method with projected benefits to the entry age normal cost method. Gains and losses are reflected in the unfunded accrued liability. The actuarial assumptions used are in the aggregate reasonably related to the experience under the Plan and to reasonable expectations of anticipated experience under the Plan. In our opinion, the Plan is operating on an actuarially sound basis and the sufficiency of the funds to provide the benefits called for by the Plan may be safely anticipated assuming future annual required contributions (ARC) are contributed when due. \n \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the Plan. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \nThe actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the System. Use of these computations for purposes other than meeting these requirements may not be appropriate. \n \nSincerely yours, \n \nEdward A. Macdonald, ASA, FCA MAAA President \n \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n96 \n \nCathy Turcot Principal and Managing Director \n \n Actuarial Section \nSummary of Plan Provisions \nERS  Please see Notes to Financial Statements, (2)(a), pages 30-31. PSERS  Please see Notes to Financial Statements, (2)(b), page 31-32. LRS  Please see Notes to Financial Statements, (2)(c), pages 32-33. GJRS  Please see Notes to Financial Statements, (2)(d), pages 33-34. GMPF  Please see Notes to Financial Statements, (2)(e), page 34. SEAD-OPEB  Please see Notes to Financial Statements, (2)(h), pages 35-36. \nThe following Boards are responsible for establishing and maintaining the funding policies of the various defined benefit pension plans administered by ERSGA: \n Board of Trustees of the Employees' Retirement System: ERS, LRS, and GMPF  Board of Trustees of the Public School Employees Retirement System: PSERS  Board of Trustees of the Georgia Judicial Retirement System: GJRS \nThe following Board is responsible for establishing and maintaining the funding policy of the defined benefit post-employment life insurance plan administered by ERSGA: \n Board of Directors of the State Employees' Assurance Department: SEAD-OPEB \nERS, PSERS, LRS, GJRS, and GMPF are all subject to the provisions of GASB Statement No. 67 (GASB 67). All of the plans covered under GASB 67 use the Entry Age Normal actuarial cost method for both funding and financial reporting purposes. This continues a long-standing practice for all of those plans and provides a point of consistency between the funding provisions and the GASB 67 requirements. \nSEAD-OPEB is subject to the provisions of GASB Statement No. 74 (GASB 74). SEAD-OPEB uses the Entry Age Normal actuarial cost method for both funding and financial reporting purposes. \nFor all of the plans covered under GASB 67, the GASB 67 reports prepared as of June 30, 2017 were largely based on the data, assumptions, and results of the annual funding valuations as of June 30, 2016. The Total Pension Liability (TPL) for each plan, determined using the Entry Age Normal method, was then rolled forward to the June 30, 2017 measurement date. The Net Pension Liability for each plan is equal to the rolled forward TPL less the plan's net position as of June 30, 2017. \nFor the plan covered under GASB 74, the GASB 74 report prepared as of June 30, 2017 was largely based on the data, assumptions, and results of the annual funding valuation as of June 30, 2016. The total OPEB Liability (TOL) for the plan, determined using the Entry Age Normal method, was then rolled forward to the June 30, 2017 measurement date. The Net OPEB Liability for the plan is equal to the rolled forward TOL less the plan's net position as of June 30, 2017. \nFor the funding valuations as of June 30, 2016, the Actuarial Value of Assets is calculated using a five-year smoothing methodology, whereby excesses and shortfalls of actual investment income over or under the expected investment return will be recognized over the succeeding five-year periods. \nFor the life insurance plan's funding valuation as of June 30, 2016, the Actuarial Value of Assets is equal to the Fair Value of Assets as of June 30, 2016. \n(continued) 97 \n \n Actuarial Section \nSummary of Plan Provisions \nFor the funding valuations, each plan covered under GASB 67 utilizes a 7.5% assumed rate of return and a 7.5% discount rate for the calculation of the respective plans' liabilities. The Single Equivalent Interest Rate required under GASB 67 has also been determined to be 7.5% by the plans' actuaries. The plan covered under GASB 74 utilizes a 7.5% assumed rate of return and a 7.5% discount rate for the calculation of the plan's liabilities. The Single Equivalent Interest Rate required under GASB 74 has also been determined to be 7.5% by the plan's actuaries. \n98 \n \n Actuarial Section \n \nSummary of Actuarial Assumptions \nThe laws governing the Employees' Retirement System and the plans it administers require an actuary to perform an annual valuation of the soundness of the plans. In addition, the actuary must perform at least once every five years an actuarial investigation of the mortality, service, and compensation experience of the members and beneficiaries of the System. The latest valuation was performed as of June 30, 2016 based on actuarial assumptions approved by the Board during the last experience study on December 17, 2015. \nThe more pertinent facts and significant assumptions underlying the computations included in the June 30, 2016 reports are as follows: \n \nValuation Date Actuarial Cost Method Amortization Method \nAmortization Period \n \nERS June 30, 2016 \nEntry age Level dollar, closed \n18.2 years \n \nPSERS June 30, 2016 \nEntry age Level dollar, closed \n21.9 years \n \nGJRS \nJune 30, 2016 Entry age \nLevel percent of pay, closed \n17.8 years \n \nLRS June 30, 2016 \nEntry age Level dollar, closed \nInfinite \n \nGMPF June 30, 2016 \nEntry age Level dollar, closed \n17.3 years \n \nActuarial Asset Valuation Method \nInvestment Rate of Return Inflation Rate Projected Salary Increases COLA \n \nThe actuarial value of assets was based on the total fair value income of investments, with the excess or shortfall of actual investment income over or under the expected investment return smoothed over five years. One-fifth of the excess or shortfall is recognized each year for five years. \n \n7.50% 2.75% 3.25-7.00% None \n \n7.50% 2.75% \nn/a 1.50% Semi-annually \n \n7.50% 2.75% 4.50% None \n \n7.50% 2.75% \nn/a 3.0% Annually \n \n7.50% 2.75% \nn/a None \n \nValuation Date Actuarial Cost Method Amortization Method \nAmortization Period \n \nSEAD-OPEB June 30, 2016 \nEntry age Level dollar, closed \nInfinite \n \nActuarial Asset Valuation Method \nInvestment Rate of Return Inflation Rate Projected Salary Increases \nERS GJRS LRS COLA \n \nMarket Value of Assets \n7.50% 2.75% \n3.25-7.00% 4.50% 0.00% n/a \n \n(continued) 99 \n \n Actuarial Section \n \nSummary of Actuarial Assumptions \nRates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability) ERS Representative values of the assumed annual rates of separation other than retirement for non-law enforcement officers are as follows. Special rates of separation apply to law enforcement officers. \n \nAnnual Rates of Death Annual Rates of Disability \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \n20 \n \n.0320 % .0177 % .05 % \n \n.02 % \n \n25 \n \n.0349 \n \n.0192 \n \n.05 \n \n.02 \n \n30 \n \n.0412 \n \n.0245 \n \n.05 \n \n.02 \n \n35 \n \n.0717 \n \n.0441 \n \n.05 \n \n.02 \n \n40 \n \n.1001 \n \n.0655 \n \n.25 \n \n.10 \n \n45 \n \n.1399 \n \n.1043 \n \n.48 \n \n.25 \n \n50 \n \n.1983 \n \n.1555 \n \n.70 \n \n.45 \n \n55 \n \n.2810 \n \n.2228 \n \n1.05 \n \n.73 \n \n60 \n \n.4092 \n \n.3058 \n \n-- \n \n-- \n \n65 \n \n.5600 \n \n.4304 \n \n-- \n \n-- \n \nAnnual Rates of Withdrawal Years of Service \n \n0-4 \n \n5-9 \n \n10 \u0026 over \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \n20 \n \n35.00 % 30.00 % \n \n--% \n \n--% \n \n--% \n \n--% \n \n25 \n \n27.50 \n \n25.00 \n \n15.00 \n \n17.50 \n \n-- \n \n-- \n \n30 \n \n23.00 \n \n21.50 \n \n11.50 \n \n12.50 \n \n7.50 \n \n8.25 \n \n35 \n \n21.50 \n \n19.50 \n \n10.00 \n \n10.50 \n \n6.00 \n \n6.00 \n \n40 \n \n19.50 \n \n18.25 \n \n9.50 \n \n9.50 \n \n4.75 \n \n5.00 \n \n45 \n \n18.60 \n \n16.50 \n \n9.00 \n \n8.00 \n \n4.00 \n \n4.00 \n \n50 \n \n16.60 \n \n15.00 \n \n7.25 \n \n7.25 \n \n4.25 \n \n4.25 \n \n55 \n \n14.50 \n \n14.00 \n \n7.00 \n \n7.00 \n \n4.75 \n \n4.50 \n \n60 \n \n14.00 \n \n14.50 \n \n6.00 \n \n6.25 \n \n-- \n \n-- \n \n65 \n \n15.00 \n \n17.00 \n \n10.00 \n \n11.00 \n \n-- \n \n-- \n \n(continued) 100 \n \n Actuarial Section \n \nSummary of Actuarial Assumptions Rates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability) \nPSERS \n \nAnnual Rates of Death \n \nAnnual Rates of Disability \n \nAge \n \nMen \n \nWomen \n \nBoth \n \n20 \n \n.0320 % .0177 % \n \n--% \n \n25 \n \n.0349 \n \n.0192 \n \n-- \n \n30 \n \n.0412 \n \n.0245 \n \n-- \n \n35 \n \n.0717 \n \n.0441 \n \n.0025 \n \n40 \n \n.1001 \n \n.0655 \n \n.0110 \n \n45 \n \n.1399 \n \n.1043 \n \n.0370 \n \n50 \n \n.1983 \n \n.1555 \n \n.0865 \n \n55 \n \n.2810 \n \n.2228 \n \n.2250 \n \n60 \n \n.4092 \n \n.3058 \n \n.3500 \n \n65 \n \n.5600 \n \n.4304 \n \n-- \n \nAnnual Rates of Withdrawal Years of Service \n \n0-4 \n \n5-9 \n \n10 \u0026 over \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \n20 \n \n37.00 % 32.00 % \n \n--% \n \n--% \n \n--% \n \n--% \n \n25 \n \n28.00 \n \n28.00 \n \n17.00 \n \n18.00 \n \n-- \n \n-- \n \n30 \n \n25.00 \n \n23.00 \n \n15.00 \n \n15.00 \n \n12.00 \n \n10.00 \n \n35 \n \n23.00 \n \n19.00 \n \n13.00 \n \n13.00 \n \n9.00 \n \n10.00 \n \n40 \n \n21.00 \n \n17.00 \n \n12.00 \n \n12.00 \n \n7.50 \n \n8.00 \n \n45 \n \n19.00 \n \n15.50 \n \n11.00 \n \n10.00 \n \n6.50 \n \n7.00 \n \n50 \n \n17.00 \n \n14.00 \n \n9.00 \n \n8.50 \n \n6.50 \n \n6.00 \n \n55 \n \n15.00 \n \n12.00 \n \n9.00 \n \n8.00 \n \n6.00 \n \n5.50 \n \n60 \n \n12.00 \n \n11.00 \n \n7.50 \n \n7.50 \n \n-- \n \n-- \n \n(continued) 101 \n \n Actuarial Section \n \nSummary of Actuarial Assumptions \n \nRates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability) GJRS \n \nAnnual Rates of \n \nWithdrawal \n \nDeath \n \nDisability \n \nAge \n \nBoth \n \nMen \n \nWomen \n \nBoth \n \n20 \n \n4.0 % \n \n.032 % \n \n.018 % \n \n.03 % \n \n25 \n \n4.0 \n \n.035 \n \n.019 \n \n.03 \n \n30 \n \n4.0 \n \n.041 \n \n.025 \n \n.05 \n \n35 \n \n4.0 \n \n.072 \n \n.044 \n \n.08 \n \n40 \n \n6.0 \n \n.100 \n \n.066 \n \n.10 \n \n45 \n \n4.0 \n \n.140 \n \n.104 \n \n.18 \n \n50 \n \n3.0 \n \n.198 \n \n.156 \n \n.25 \n \n55 \n \n2.5 \n \n.281 \n \n.223 \n \n.45 \n \n60 \n \n2.5 \n \n.409 \n \n.306 \n \n.73 \n \n65 \n \n2.5 \n \n.560 \n \n.430 \n \n1.18 \n \nLRS \n \nAnnual Rates of \n \nWithdrawal \n \nDeath \n \nAge \n \nBoth \n \nMen \n \nWomen \n \n20 \n \n8.0 % \n \n.032 % \n \n.018 % \n \n25 \n \n8.0 \n \n.035 \n \n.019 \n \n30 \n \n8.0 \n \n.041 \n \n.025 \n \n35 \n \n8.0 \n \n.072 \n \n.044 \n \n40 \n \n8.0 \n \n.100 \n \n.066 \n \n45 \n \n8.5 \n \n.140 \n \n.104 \n \n50 \n \n8.5 \n \n.198 \n \n.156 \n \n55 \n \n9.0 \n \n.281 \n \n.223 \n \n60 \n \n9.0 \n \n.409 \n \n.306 \n \n65 \n \n9.0 \n \n.560 \n \n.430 \n \nGMPF \n \nRates of Withdrawal from Active Service \n \nService \n \nRates \n \n2 or less 3-7 8-9 10-14 15-19 20 or more \n \n13.0 % 17.5 14.0 13.5 8.5 14.5 \n \nAge \n \nRates of Death \n \nMen \n \nWomen \n \n25 \n \n.0349% \n \n.0192% \n \n30 \n \n.0412 \n \n.0245 \n \n35 \n \n.0717 \n \n.0441 \n \n40 \n \n.1001 \n \n.0655 \n \n45 \n \n.1339 \n \n.1043 \n \n50 \n \n.1983 \n \n.1555 \n \n55 \n \n.2810 \n \n.2228 \n \n60 \n \n.4092 \n \n.3058 \n \n(continued) 102 \n \n Actuarial Section \n \nSummary of Actuarial Assumptions \nRates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability) SEAD-OPEB \n \nAll Groups Annual Rates of Death \n \nAge \n \nMen \n \nWomen \n \nERS \n \nAnnual Rates of Disability \n \nMen \n \nWomen \n \nGJRS \nAnnual Rates of Disability \nBoth \n \n20 \n \n.0320 % .0177 % \n \n.05 % \n \n.02 % \n \n.03 % \n \n25 \n \n.0349 \n \n.0192 \n \n.05 \n \n.02 \n \n.03 \n \n30 \n \n.0412 \n \n.0245 \n \n.05 \n \n.02 \n \n.05 \n \n35 \n \n.0717 \n \n.0441 \n \n.05 \n \n.02 \n \n.08 \n \n40 \n \n.1001 \n \n.0655 \n \n.25 \n \n.10 \n \n.10 \n \n45 \n \n.1399 \n \n.1043 \n \n.48 \n \n.25 \n \n.18 \n \n50 \n \n.1983 \n \n.1555 \n \n.70 \n \n.45 \n \n.25 \n \n55 \n \n.2810 \n \n.2228 \n \n1.05 \n \n.73 \n \n.45 \n \n60 \n \n.4092 \n \n.3058 \n \n-- \n \n-- \n \n.73 \n \n65 \n \n.5600 \n \n.4304 \n \n-- \n \n-- \n \n1.18 \n \nERS \n \nLRS \n \nGJRS \n \nAnnual Rates of Withdrawal Years of Service \n \nAnnual Rates of Annual Rates of \n \nWithdrawal \n \nWithdrawal \n \n0-4 \n \n5-9 \n \n10 \u0026 over \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \n20 \n \n35.00 % 30.00 % \n \n--% \n \n--% \n \n--% \n \n--% \n \n25 \n \n27.50 \n \n25.00 \n \n15.00 \n \n17.50 \n \n-- \n \n-- \n \n30 \n \n23.00 \n \n21.50 \n \n11.50 \n \n12.50 \n \n7.50 \n \n8.25 \n \n35 \n \n21.50 \n \n19.50 \n \n10.00 \n \n10.50 \n \n6.00 \n \n6.00 \n \n40 \n \n19.50 \n \n18.25 \n \n9.50 \n \n9.50 \n \n4.75 \n \n5.00 \n \n45 \n \n18.60 \n \n16.50 \n \n9.00 \n \n8.00 \n \n4.00 \n \n4.00 \n \n50 \n \n16.60 \n \n15.00 \n \n7.25 \n \n7.25 \n \n4.25 \n \n4.25 \n \n55 \n \n14.50 \n \n14.00 \n \n7.00 \n \n7.00 \n \n4.75 \n \n4.50 \n \n60 \n \n14.00 \n \n14.50 \n \n6.00 \n \n6.25 \n \n-- \n \n-- \n \n65 \n \n15.00 \n \n17.00 \n \n10.00 \n \n11.00 \n \n-- \n \n-- \n \nBoth \n8.00 % 8.00 8.00 8.00 8.00 8.50 8.50 9.00 9.00 9.00 \n \nBoth \n4.00 % 4.00 4.00 4.00 6.00 4.00 3.00 2.50 2.50 2.50 \n \n103 \n \n Summary of Actuarial Assumptions \nAnnual Rates of Retirement ERS \n \nActuarial Section \n \nOld Plan \n \nEarly Retirement \n \nAge 60 or 30 years \n \n34 years \n \nMore than 34 years \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \n50 \n \n2.0 % \n \n2.0 % \n \n7.5 % \n \n6.0 % 100.0 % \n \n100.0 % \n \n90.0 % \n \n100.0 % \n \n52 \n \n2.0 \n \n2.0 \n \n7.5 \n \n6.0 \n \n100.0 \n \n100.0 \n \n90.0 \n \n100.0 \n \n55 \n \n3.0 \n \n3.5 \n \n7.5 \n \n10.0 \n \n100.0 \n \n100.0 \n \n75.0 \n \n90.0 \n \n57 \n \n3.5 \n \n60 \n \n-- \n \n-- \n \n62 \n \n-- \n \n65 \n \n-- \n \n67 \n \n-- \n \n-- \n \n70 \n \n-- \n \n75 \n \n-- \n \n5.0 \n \n10.5 \n \n10.0 \n \n100.0 \n \n-- \n \n15.0 \n \n20.0 \n \n97.5 \n \n-- \n \n-- \n \n32.0 \n \n40.0 \n \n97.5 \n \n-- \n \n35.0 \n \n40.0 \n \n35.0 \n \n-- \n \n35.0 \n \n35.0 \n \n35.0 \n \n-- \n \n-- \n \n35.0 \n \n35.0 \n \n35.0 \n \n-- \n \n100.0 \n \n100.0 \n \n100.0 \n \n100.0 95.0 95.0 40.0 35.0 35.0 \n100.0 \n \n70.0 40.0 40.0 35.0 35.0 35.0 100.0 \n \n70.0 55.0 65.0 40.0 35.0 35.0 100.0 \n \nNew Plan and GSEPS \n \nEarly Retirement \n \nNormal Retirement \n \nAge \n \nMen \n \n50 \n \n7.0 % \n \n52 \n \n7.0 \n \n55 \n \n7.0 \n \n57 \n \n8.0 \n \n60 \n \n-- \n \n62 \n \n-- \n \n65 \n \n-- \n \n67 \n \n-- \n \n70 \n \n-- \n \n75 \n \n-- \n \nWomen \n4.5 % 4.5 6.5 8.0 -- -- -- -- -- -- \n \nMen* \n70.0 % 70.0 60.0 50.0 25.0 40.0 32.0 32.0 30.0 100.0 \n \nWomen** \n50.0 % 45.0 50.0 40.0 30.0 40.0 35.0 32.0 30.0 100.0 \n \n*An additional 10% of active male New Plan and GSEPS members less than age 55 and 20% between ages 55-59, inclusive, are expected to retire in the year in which they attain 30 years of service. \n**An additional 20% of active female New Plan and GSEPS members less than age 60 are expected to retire in the year in which they attain 30 years of service. \n \n(continued) 104 \n \n Summary of Actuarial Assumptions \n \nAnnual Rates of Retirement PSERS \n \nAge \n \nAnnual Rate of Retirement \n \n60 \n \n13.0 % \n \n61 \n \n13.0 \n \n62 \n \n22.0 \n \n63 \n \n17.5 \n \n64 \n \n17.0 \n \n65 \n \n28.0 \n \n66 \n \n27.0 \n \n67 \n \n23.0 \n \nAge \n68 69 70 71 72 73 74 75 \u0026 over \n \nActuarial Section \nAnnual Rate of Retirement 23.0 % 26.0 27.0 27.0 27.0 27.0 27.0 \n100.0 \n \nGJRS \n \nAge \n60 61 62 63-64 65-69 70-74 75 \n \nAnnual Rate of Retirement \n15.0 % 10.0 12.0 10.0 15.0 25.0 100.0 \n \nLRS \n \nAge \n60 61 62 63 64 65 \n \nAnnual Rate of Retirment \n10.0 % 10.0 15.0 10.0 10.0 12.0 \n \nAge \n66 67 68 69 70-74 75 \n \nAnnual Rate of Retirement \n12.0 % 15.0 12.0 12.0 20.0 100.0 \n \nGMPF \n \nAge \n60 61 62 63 64 65 \u0026 over \n \nAnnual Rate of Retirement \n75.0 % 60.0 70.0 60.0 60.0 100.0 \n \n(continued) 105 \n \n Actuarial Section \n \nSummary of Actuarial Assumptions \n \nAnnual Rates of Retirement SEAD-OPEB ERS Members \n \nOld Plan \n \nEarly Retirement \n \nAge 60 or 30 years \n \n34 years \n \nMore than 34 years \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \n50 \n \n2.0 % \n \n2.0 % \n \n7.5 % \n \n6.0 % 100.0 % \n \n100.0 % \n \n90.0 % \n \n100.0 % \n \n52 \n \n2.0 \n \n2.0 \n \n7.5 \n \n6.0 \n \n100.0 \n \n100.0 \n \n90.0 \n \n100.0 \n \n55 \n \n3.0 \n \n3.5 \n \n7.5 \n \n10.0 \n \n100.0 \n \n100.0 \n \n75.0 \n \n90.0 \n \n57 \n \n3.5 \n \n60 \n \n-- \n \n-- \n \n62 \n \n-- \n \n65 \n \n-- \n \n67 \n \n-- -- \n \n70 \n \n-- \n \n75 \n \n-- \n \n5.0 \n \n10.5 \n \n10.0 \n \n100.0 \n \n-- \n \n15.0 \n \n20.0 \n \n97.5 \n \n-- \n \n-- \n \n32.0 \n \n40.0 \n \n97.5 \n \n-- \n \n35.0 \n \n40.0 \n \n35.0 \n \n-- -- \n \n35.0 \n \n35.0 \n \n35.0 \n \n-- \n \n35.0 \n \n35.0 \n \n35.0 \n \n-- \n \n100.0 \n \n100.0 \n \n100.0 \n \n100.0 95.0 95.0 40.0 35.0 35.0 \n100.0 \n \n70.0 40.0 40.0 35.0 35.0 35.0 100.0 \n \n70.0 55.0 65.0 40.0 35.0 35.0 100.0 \n \nNew Plan and GSEPS \n \nEarly Retirement \n \nNormal Retirement \n \nAge \n \nMen \n \nWomen \n \nMen* \n \nWomen** \n \n50 \n \n7.0 % \n \n4.5 % \n \n70.0 % \n \n50.0 % \n \n52 \n \n7.0 \n \n4.5 \n \n70.0 \n \n45.0 \n \n55 \n \n7.0 \n \n6.5 \n \n60.0 \n \n50.0 \n \n57 \n \n8.0 \n \n60 \n \n-- \n \n-- \n \n62 \n \n-- \n \n65 \n \n-- \n \n67 \n \n-- \n \n-- \n \n70 \n \n-- \n \n75 \n \n-- \n \n8.0 \n \n50.0 \n \n-- \n \n25.0 \n \n-- \n \n-- \n \n40.0 \n \n-- \n \n32.0 \n \n-- \n \n32.0 \n \n-- \n \n-- \n \n30.0 \n \n-- \n \n100.0 \n \n40.0 30.0 40.0 35.0 32.0 30.0 100.0 \n \n*An additional 10% of active male New Plan and GSEPS members less than age 55 and 20% between ages 55-59, inclusive, are expected to retire in the year in which they attain 30 years of service. \n**An additional 20% of active female New Plan and GSEPS members less than age 60 are expected to retire in the year in which they attain 30 years of service. \nLRS Members \n \nAge 60 61 62 63-64 65-66 \n \nAnnual Rate of Retirement \n10.0 % 10.0 15.0 10.0 12.0 \n \nAge 67 68-69 70-74 75 \n \nAnnual Rate of Retirement \n15.0 % 12.0 20.0 100.0 \n \n(continued) 106 \n \n Summary of Actuarial Assumptions \nAnnual Rates of Retirement SEAD-OPEB GJRS Members \n \nAge \n60 61 62 63-64 65-66 67 68-69 70-74 75 \n \nAnnual Rates of Retirement \n15.0 % 10.0 12.0 10.0 15.0 15.0 15.0 25.0 100.0 \n \nActuarial Section \n \n107 \n \n Actuarial Section \nSummary of Actuarial Assumptions \nAnnual Rates of Death After Retirement For all plans except PSERS, the RP-2000 Combined Mortality Table (projected to 2025 with projection scale BB and set forward two years for both males and females) is used for the period after retirement and for dependent beneficiaries. The RP-2000 Disabled Mortality Table (projected to 2025 with projection scale BB and and set back seven years for males and set forward three years for females) is used for the period after disability retirement. For PSERS, the RP-2000 Blue-Collar Mortality Table (projected to 2025 with projection scale BB and set forward three years for males and two years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table (projected to 2025 with projection scale BB and set forward five years for both males and females) is used for the period after disability retirement. For all plans, there is a margin for future mortality improvement in the tables. \nERS \n \nAge \n \nMen \n \nWomen \n \n40 \n \n0.1127 % \n \n0.0790 % \n \n45 \n \n0.1609 \n \n0.1230 \n \n50 \n \n0.2474 \n \n0.1872 \n \n55 \n \n0.4246 \n \n0.2918 \n \n60 \n \n0.6985 \n \n0.4923 \n \nAge \n \nMen \n \nWomen \n \n65 \n \n1.1300 % 0.8994 % \n \n70 \n \n1.8697 \n \n1.5281 \n \n75 \n \n3.2147 \n \n2.5220 \n \n80 \n \n5.5160 \n \n4.1628 \n \n85 \n \n9.5631 \n \n7.1239 \n \nPSERS \n \nAge \n \nMen \n \nWomen \n \n40 \n \n0.1476 % \n \n0.0995 % \n \n45 \n \n0.1974 \n \n0.1484 \n \n50 \n \n0.3057 \n \n0.2084 \n \n55 \n \n0.5644 \n \n0.2844 \n \n60 \n \n0.9575 \n \n0.5014 \n \nAge \n \nMen \n \nWomen \n \n65 \n \n1.4859 % 0.9774 % \n \n70 \n \n2.4262 \n \n1.7054 \n \n75 \n \n3.9830 \n \n2.7288 \n \n80 \n \n6.5238 \n \n4.4542 \n \n85 \n \n10.9551 \n \n7.5727 \n \nGJRS \n \nAge \n \nMen \n \nWomen \n \n40 \n \n0.1127 % \n \n0.0790 % \n \n45 \n \n0.1609 \n \n0.1230 \n \n50 \n \n0.2474 \n \n0.1872 \n \n55 \n \n0.4246 \n \n0.2918 \n \n60 \n \n0.6985 \n \n0.4923 \n \nAge \n \nMen \n \nWomen \n \n65 \n \n1.1300 % 0.8994 % \n \n70 \n \n1.8697 \n \n1.5281 \n \n75 \n \n3.2147 \n \n2.5220 \n \n80 \n \n5.5160 \n \n4.1628 \n \n85 \n \n9.5631 \n \n7.1239 \n \n(continued) 108 \n \n Summary of Actuarial Assumptions \n \nAnnual Rates of Death After Retirement LRS \n \nAge \n \nMen \n \nWomen \n \n40 \n \n0.1127 % \n \n0.0790 % \n \n45 \n \n0.1609 \n \n0.1230 \n \n50 \n \n0.2474 \n \n0.1872 \n \n55 \n \n0.4246 \n \n0.2918 \n \n60 \n \n0.6985 \n \n0.4923 \n \nActuarial Section \n \nAge \n \nMen \n \nWomen \n \n65 \n \n1.1300 % 0.8994 % \n \n70 \n \n1.8697 \n \n1.5281 \n \n75 \n \n3.2147 \n \n2.5220 \n \n80 \n \n5.5160 \n \n4.1628 \n \n85 \n \n9.5631 \n \n7.1239 \n \nGMPF \n \nAge \n \nMen \n \nWomen \n \n40 \n \n0.1127 % \n \n0.0790 % \n \n45 \n \n0.1609 \n \n0.1230 \n \n50 \n \n0.2474 \n \n0.1872 \n \n55 \n \n0.4246 \n \n0.2918 \n \n60 \n \n0.6985 \n \n0.4923 \n \nAge \n \nMen \n \nWomen \n \n65 \n \n1.1300 % 0.8994 % \n \n70 \n \n1.8697 \n \n1.5281 \n \n75 \n \n3.2147 \n \n2.5220 \n \n80 \n \n5.5160 \n \n4.1628 \n \n85 \n \n9.5631 \n \n7.1239 \n \nSEAD-OPEB \n \nAge \n \nMen \n \nWomen \n \n40 \n \n0.1127 % \n \n0.0790 % \n \n45 \n \n0.1609 \n \n0.1230 \n \n50 \n \n0.2474 \n \n0.1872 \n \n55 \n \n0.4246 \n \n0.2918 \n \n60 \n \n0.6985 \n \n0.4923 \n \nAge \n \nMen \n \nWomen \n \n65 \n \n1.1300 % 0.8994 % \n \n70 \n \n1.8697 \n \n1.5281 \n \n75 \n \n3.2147 \n \n2.5220 \n \n80 \n \n5.5160 \n \n4.1628 \n \n85 \n \n9.5631 \n \n7.1239 \n \n109 \n \n Active Members \nERS \n \nActuarial Section \n \nYear 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nActive Members 73,985 75,293 71,272 68,566 66,081 63,942 61,550 60,486 60,416 59,766 \n \nAnnual Payroll (in thousands) $ 2,680,972 \n2,809,199 2,674,155 2,571,042 2,486,780 2,414,884 2,335,773 2,315,625 2,352,920 2,384,358 \n \nAverage Pay $ 36,237 \n37,310 37,520 37,497 37,632 37,767 37,949 38,284 38,945 39,895 \n \nChange 2.1 % 3.0 0.6 (0.1) 0.4 0.4 0.5 0.9 1.7 2.4 \n \nPSERS PSERS is not a compensation based plan. \n \nYear \n2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nActive Members \n39,086 40,121 40,581 39,962 39,249 38,654 37,361 36,096 35,477 34,866 \n \nGJRS \n \nYear 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nActive Members 480 482 502 495 507 503 506 513 516 526 \n \nAnnual Payroll (in thousands) $ 48,621 \n51,102 52,083 51,293 52,331 51,898 52,807 53,628 54,272 57,401 \n \nAverage Pay $ 101,294 \n106,021 103,751 103,622 103,216 103,177 104,362 104,539 105,178 109,128 \n \nChange 6.9 % 4.7 (2.1) (0.1) (0.4) (0.0) 1.1 0.2 0.6 3.8 \n \n(continued) 110 \n \n Active Members \nLRS LRS is not a compensation based plan. \nGMPF GMPF is not a compensation based plan. \nSEAD-OPEB \nSEAD-OPEB began in 2007. \n \nActuarial Section \n \nYear \n2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nActive Members \n218 218 218 216 218 220 223 222 218 224 \n \nYear \n2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nActive Members \n12,017 11,623 12,019 13,032 13,776 13,526 13,573 13,469 13,754 13,850 \n \nYear \n2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nActive Members \n75,859 69,745 62,305 55,516 49,261 43,512 39,101 35,189 32,076 \n \nNote: Payroll data on page 110 for fiscal year 2016 will not equal that which is presented in the Financial section in the Schedules of Employers' and Nonemployers' Contributions on pages 62-63. Valuation data at that time was a snapshot of the valuation date, annualized for new hires, but does not include those who terminated during the year. \n \n111 \n \n Actuarial Section \n \nMember and Employer Contribution Rates \nERS \n \nYear \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nMember \n1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% \n \nEmployer Rates \n \nOld Plan* \n \nNew Plan \n \n10.41% 10.41% 10.41% 10.41% 11.63% 14.90% 18.46% 21.96% 24.72% 24.69% \n \n10.41% 10.41% 10.41% 10.41% 11.63% 14.90% 18.46% 21.96% 24.72% 24.69% \n \nGSEPS** \nn/a 6.54% 6.54% 6.54% 7.42% 11.54% 15.18% 18.87% 21.69% 21.69% \n \n* Old Plan rate includes an employer pick-up of employee contributions. ** GSEPS Plan began on January 1, 2009. \n \nPSERS \n \nYear \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nPre 7/1/12 Member \n$ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year \n \nPost 7/1/12 Member \n$ 90 per year $ 90 per year $ 90 per year $ 90 per year \n \nEmployer \n \n$ \n \n2,866,000 \n \n5,680,000 \n \n5,529,000 \n \n7,509,000 \n \n15,884,000 \n \n24,829,000 \n \n27,160,000 \n \n28,461,000 \n \n28,580,000 \n \n26,277,000 \n \nGJRS \n \nYear \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nMember \n7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% \n \nEmployer \n3.85% 3.85% 3.85% 3.85% 3.90% 3.90% 4.23% 6.98% 12.19%I) 10.48%I) \n \n(continued) 112 \n \n Member and Employer Contribution Rates \nLRS \n \nYear \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nMember \n8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% \n \nActuarial Section \n \nEmployer \n \n$ \n \n73,000 \n \n71,000 \n \n75,000 \n \n75,000 \n \n75,000 \n \n128,000 \n \n45,000 \n \n0 \n \n0 \n \n0 \n \nGMPF \n \nYear \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nMember \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n \nEmployer \n$ 1,103,000 1,323,000 1,434,000 1,282,000 1,521,000 1,703,000 1,892,000 1,893,369 1,989,530 2,017,875 \n \nSEAD-OPEB* \n \nYear \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \n*SEAD-OPEB began in 2007. \n \nMember - Old Plan \n0.45% 0.45% 0.45% 0.45% 0.45% 0.45% 0.45% 0.45% 0.45% 0.45% \n \nMember - New Plan, LRS, GJRS \n0.23% 0.23% 0.23% 0.23% 0.23% 0.23% 0.23% 0.23% 0.23% 0.23% \n \nEmployer \n0% 0% 0% 0% 0.61% 0.27% 0% 0% 0% 0% \n \n(continued) 113 \n \n (continued) 114 \n \nEmployees' Retirement System Public School Employees Retirement System Legislative Retirement System Georgia Judicial Retirement System \n \nActuarial valuation \ndate \n6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 \n6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 \n6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 \n6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 \n \nActuarial value of plan assets \n(a) \n$ 13,843,689 14,017,346 13,613,606 13,046,193 12,667,557 12,260,595 12,129,804 12,376,120 12,675,649 12,854,518 \n785,460 791,855 769,618 737,406 719,601 710,915 727,268 765,450 805,277 834,554 \n30,049 30,706 30,303 29,581 29,278 28,990 29,481 30,538 31,635 32,171 \n297,090 313,315 317,624 320,050 327,483 335,225 351,889 373,560 396,399 418,412 \n \nActuarial accrued liablility (AAL) entry age (b) \n14,885,179 15,680,857 15,878,022 16,295,352 16,656,905 16,777,922 16,982,449 16,991,963 17,099,527 17,199,688 \n746,078 770,950 823,232 875,396 885,927 895,324 910,256 924,365 967,409 988,883 \n24,357 24,454 23,523 25,003 25,245 24,966 24,904 24,913 25,690 25,533 \n249,278 268,516 282,474 281,496 290,486 308,862 335,792 343,428 350,298 376,740 \n \nUnfunded AAL/ (funded excess) \n(b-a) \n1,041,490 1,663,511 2,264,416 3,249,159 3,989,348 4,517,327 4,852,645 4,615,843 4,423,878 4,345,170 \n(39,382) (20,905) \n53,614 137,990 166,326 184,409 182,988 158,915 162,132 154,329 \n(5,692) (6,252) (6,780) (4,578) (4,033) (4,024) (4,577) (5,624) (5,945) (6,638) \n(47,812) (44,799) (35,150) (38,554) (36,997) (26,363) (16,097) (30,132) (46,101) (41,672) \n \nFunded ratio (a/b) \n93.0 % 89.4 85.7 80.1 76.0 73.1 71.4 72.8 74.1 74.7 \n105.3 102.7 \n93.5 84.2 81.2 79.4 79.9 82.8 83.2 84.4 \n123.4 125.6 128.8 118.3 116.0 116.1 118.4 122.6 123.1 126.0 \n119.2 116.7 112.4 113.7 112.7 108.5 104.8 108.8 113.2 111.1 \n \nAnnual covered payroll \n(c) \n$ 2,680,972 2,809,199 2,674,155 2,571,042 2,486,780 2,414,884 2,335,773 2,315,625 2,352,920 2,384,358 \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \n3,688 3,778 3,780 3,745 3,780 3,815 3,867 3,850 3,764 3,875 \n48,621 51,102 52,083 51,293 52,331 51,898 52,807 53,628 54,272 57,401 \n \nUnfunded AAL/ (funded excess) as percentage of covered payroll \n[(b-a)/c] \n38.8 % 59.2 84.7 126.4 160.4 187.1 207.8 199.3 188.0 182.2 \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \n(154.3) (165.5) (179.4) (122.2) (106.7) (105.5) (118.4) (146.1) (157.9) (171.3) \n(98.3) (87.7) (67.5) (75.2) (70.7) (50.8) (30.5) (56.2) (84.9) (72.6) \n \nSchedules of Funding Progress - Defined Benefit Plans \n(Dollar amounts in thousands) \n \nActuarial Section \n \n Schedules of Funding Progress - Defined Benefit Plans \n(Dollar amounts in thousands) \n \nGeorgia Military Pension Fund  \n \nActuarial valuation \ndate \n6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 \n \nActuarial value of plan assets \n(a) \n \n$ \n \n4,165 \n \n5,269 \n \n6,413 \n \n7,558 \n \n8,702 \n \n10,087 \n \n12,131 \n \n14,264 \n \n16,446 \n \n18,414 \n \nActuarial accrued liability (AAL) entry-age \n(b) \n19,887 19,124 21,021 23,773 26,767 28,231 30,056 31,815 35,213 38,211 \n \nUnfunded AAL/ (funded excess) \n(b-a) \n15,722 13,855 14,608 16,215 18,065 18,144 17,925 17,551 18,767 19,797 \n \nFunded ratio (a/b) \n20.9 % 27.6 30.5 31.8 32.5 35.7 40.4 44.8 46.7 48.2 \n \nAnnual covered payroll \n(c) \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \n \nUnfunded AAL/ (funded excess) as percentage of covered payroll \n[(b-a)/c] \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \n \n115 \n \nThis data, except for annual covered payroll, was provided by the System's actuary. \n No statistics regarding covered payroll are available. Contributions are not based on members' salaries, but are simply $4.00 per month, per member for nine months each fiscal year if hired prior to July 1, 2012 and $10 per month, per member for nine months if hired after July 1, 2012.  No statistics regarding covered payroll are available. Active and inactive plan member information is maintained by the Georgia Department of Defense. \nNote: Payroll data on pages 114-115 for fiscal year 2016 will not equal that which is presented in the Financial section in the Schedules of Employers' and Nonemployers' Contributions on pages 62-63. Valuation data at that time was a snapshot of the valuation date, annualized for new hires, but does not include those who terminated during the year. \nSee accompanying notes to required supplementary schedules and accompanying independent auditors' report. \n \nActuarial Section \n \n Schedule of Retirees Added to and Removed from Rolls \nERS \n \nActuarial Section \n \nYear Ended \n2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nAdded to Rolls \n \nRemoved from Rolls \n \nRoll End of Year \n \nNumber \n2,410 2,422 2,444 2,665 2,797 2,956 3,664 2,440 2,656 2,572 \n \nAnnual Allowances (in thousands) \n$ 114,719 82,644 85,329 70,383 69,031 71,464 88,855 51,178 54,003 51,031 \n \nNumber \n1,075 1,017 1,055 1,051 1,170 1,305 1,176 1,059 1,350 1,342 \n \nAnnual Allowances (in thousands) \n$ 20,598 21,299 20,194 22,413 25,347 27,696 26,334 22,997 30,927 30,724 \n \nNumber \n34,174 35,579 36,968 38,582 40,209 41,860 44,348 45,729 47,035 48,265 \n \nAnnual Allowances (in thousands) \n$ 936,278 997,623 \n1,062,758 1,110,728 1,154,412 1,198,180 1,260,701 1,288,882 1,311,958 1,332,265 \n \n% Increase in Annual Allowance \n11.2 % 6.6 6.5 4.5 3.9 3.8 5.2 2.2 1.8 1.5 \n \nAverage Annual Allowances \n$ 27,397 28,040 28,748 28,789 28,710 28,624 28,427 28,185 27,893 27,603 \n \nPSERS \n \nAdded to Rolls \n \nRemoved from Rolls \n \nYear Ended \n2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nNumber \n816 899 886 1,001 1,174 1,133 1,298 1,345 1,247 1,363 \n \nAnnual Allowances (in thousands) \n$ 4,749 4,514 5,290 4,494 3,168 3,192 3,803 3,749 3,482 3,927 \n \nNumber \n637 605 575 642 731 684 650 647 690 763 \n \nAnnual Allowances (in thousands) \n$ 2,353 2,371 2,260 2,666 3,072 2,834 2,738 2,604 2,679 2,890 \n \nRoll End of Year \n \nNumber \n13,193 13,487 13,798 14,157 14,600 15,049 15,697 16,395 16,952 17,552 \n \nAnnual Allowances (in thousands) \n$ 46,662 48,805 51,835 53,663 53,759 54,117 55,182 56,327 57,130 58,167 \n \n% Increase in Annual Allowance \n5.4 % 4.6 6.2 3.5 0.2 0.7 2.0 2.1 1.4 1.8 \n \nAverage Annual Allowances \n$ 3,537 3,619 3,757 3,791 3,682 3,596 3,515 3,436 3,370 3,314 \n \nGJRS \n \nAdded to Rolls \n \nRemoved from Rolls \n \nYear Ended \n2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nNumber \n13 14 29 16 15 22 42 23 21 13 \n \nAnnual Allowances (in thousands) \n$ 853 902 \n2,238 933 \n1,168 1,732 2,763 1,175 1,416 \n919 \n \nNumber \n7 7 6 10 2 8 13 9 11 5 \n \nAnnual Allowances (in thousands) \n \n$ \n \n297 \n \n410 \n \n191 \n \n508 \n \n105 \n \n405 \n \n629 \n \n326 \n \n561 \n \n269 \n \nRoll End of Year \n \nNumber \n171 178 201 207 220 234 263 277 287 295 \n \nAnnual Allowances (in thousands) \n$ 9,473 9,965 \n12,012 12,437 13,500 14,827 16,961 17,810 18,665 19,315 \n \n% Increase in Annual Allowance \n6.2 % 5.2 20.5 3.5 8.5 9.8 14.4 5.0 4.8 3.5 \n \nAverage Annual Allowances \n$ 55,398 55,983 59,761 60,082 61,364 63,363 64,490 64,296 65,035 65,475 \n \n(continued) 116 \n \n Schedule of Retirees Added to and Removed from Rolls \nLRS \n \nActuarial Section \n \nAdded to Rolls \n \nYear Ended \n2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nNumber \n17 13 10 10 18 10 32 6 13 9 \n \nAnnual Allowances (in thousands) \n$ 151 130 117 106 104 66 200 30 87 58 \n \nRemoved from Rolls \n \nNumber \n9 11 7 3 10 11 15 7 12 13 \n \nAnnual Allowances (in thousands) \n \n$ \n \n74 \n \n100 \n \n54 \n \n36 \n \n86 \n \n82 \n \n140 \n \n61 \n \n112 \n \n111 \n \nRoll End of Year \n \nNumber \n224 226 229 236 244 243 260 259 260 256 \n \nAnnual Allowances (in thousands) \n$ 1,609 1,639 1,702 1,772 1,790 1,774 1,834 1,803 1,778 1,725 \n \n% Increase in Annual Allowance \n5.0 % 1.9 3.8 4.1 1.0 (0.9) 3.4 (1.7) (1.4) (3.0) \n \nAverage Annual Allowances \n$ 7,183 7,252 7,432 7,508 7,336 7,300 7,054 6,961 6,838 6,738 \n \nGMPF \n \nAdded to Rolls \n \nRemoved from Rolls \n \nRoll End of Year \n \nYear Ended \n2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nNumber \n73 71 85 92 94 95 83 62 54 79 \n \nAnnual Allowances (in thousands) \n$ 83 76 91 \n100 101 106 \n87 68 55 82 \n \nNumber \n1 2 3 1 3 3 5 5 6 9 \n \nAnnual Allowances (in thousands) \n \n$ \n \n1 \n \n2 \n \n4 \n \n1 \n \n4 \n \n3 \n \n5 \n \n6 \n \n5 \n \n9 \n \nNumber \n235 304 386 477 568 660 738 795 843 913 \n \nAnnual Allowances (in thousands) \n \n$ \n \n260 \n \n334 \n \n421 \n \n520 \n \n617 \n \n720 \n \n802 \n \n864 \n \n914 \n \n987 \n \n% Increase in Annual Allowance \n46.1 % 28.5 26.0 23.5 18.7 16.7 11.4 \n7.7 5.8 8.0 \n \nAverage Annual Allowances \n$ 1,106 1,099 1,091 1,090 1,086 1,091 1,087 1,087 1,084 1,081 \n \nSEAD-OPEB is a post-employment life insurance plan which does not have annuity payments. \n \n117 \n \n Analysis of Change in Unfunded Accrued Liability (UAL) \n \n2016 \n \n2015 \n \n2014 \n \n2013 \n \n2012 \n \n2011 \n \n2010 \n \n2009 \n \n2008 \n \n2007 \n \nERS \n \nInterest (7.50) added to \n \n$ \n \nprevious UAL \n \nAccrued liability contribution \n \nExperience: Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Salary increases Method changes Amendments (COLAs) Assumption changes Lawsuit Programming modification Data changes Misc. changes \n \nTotal \n \n$ \n \n331.8 $ \n(514.7) \n8.5 12.8 43.6 \n7.8 (0.6) 0.0 28.4 0.0 0.0 0.0 3.6 0.1 \n(78.7) $ \n \n346.2 $ \n(419.4) \n(198.9) 13.9 50.8 10.3 (89.6) 0.0 0.0 80.4 0.0 0.0 14.4 (0.1) \n(192.0) $ \n \n363.9 $ \n(321.7) \n(228.9) 60.4 45.5 9.3 \n(159.4) 0.0 0.0 0.0 0.0 0.0 (6.0) 0.1 \n(236.8) $ \n \nAmount of Increase (Decrease) (in Millions) \n \n338.8 $ \n \n299.2 $ \n \n243.7 $ \n \n169.8 $ \n \n(239.1) \n253.7 20.6 \n103.7 14.1 (46.8) \n(128.3) 0.0 0.0 0.0 0.0 \n18.7 (0.1) \n335.3 $ \n \n(147.7) \n396.3 15.5 93.8 12.1 (74.2) 0.0 \n(118.8) 0.0 0.0 \n26.3 12.9 12.6 \n528.0 $ \n \n(122.9) \n433.6 16.4 91.4 28.4 49.0 0.0 0.0 0.0 0.0 (28.7) 9.1 20.2 \n740.2 $ \n \n(89.4) \n710.1 49.2 118.4 15.0 \n(259.2) 0.0 0.0 \n250.7 0.0 0.0 (2.4) \n22.5 \n984.7 $ \n \nAmount of Increase (Decrease) (in Thousands) \n \nPSERS \nInterest (7.50) added to previous UAL \n \n$ 12,159.9 $ 11,918.7 $ 13,724.1 $ 13,830.7 $ 12,474.4 $ 10,349.3 $ 4,021.0 $ \n \nAccrued liability contribution \n \n(17,394.7) \n \n(17,704.8) \n \n(15,915.4) \n \n(12,497.7) \n \n(4,843.8) \n \n4,022.8 \n \n6,403.4 \n \n124.8 $ \n \n78.1 $ \n \n(99.7) \n \n(86.3) \n \n609.1 65.4 \n107.3 16.7 \n(296.9) 0.0 \n(358.6) 0.0 \n75.9 0.0 \n270.5 86.4 \n600.9 $ \n \n129.3 51.3 \n103.0 22.9 (22.7) 0.0 \n188.8 0.0 0.0 0.0 0.0 \n157.6 \n622.0 $ \n \n(1,567.9) $ (2,953.7) $ \n \n5,026.0 \n \n7,267.0 \n \n58.6 \n(35.3) \n(59.5) 51.0 115.7 35.7 (33.2) \n0.0 5.9 0.0 0.0 0.0 0.0 120.9 259.8 \n(5,596.9) \n4,729.2 \n \nActuarial Section \n \n(continued) 118 \n \nExperience: Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Method changes Amendments COLAs Assumption changes Lawsuit Data changes Allotment for expenses Misc. changes \n \n841.0 (643.8) (228.2) 2,798.1 \n0.0 0.0 (5,492.0) 0.0 0.0 0.0 0.0 157.2 \n \n(12,207.0) 414.9 \n2,618.5 2,875.9 \n0.0 0.0 (14,772.9) 30,030.0 0.0 0.0 0.0 43.0 \n \n(14,071.0) 1,286.7 2,580.8 2,786.0 0.0 0.0 \n(14,398.9) 0.0 0.0 0.0 0.0 \n(64.9) \n \n13,868.0 (381.9) \n4,772.4 2,757.7 (9,259.0) \n0.0 (14,813.1) \n0.0 0.0 0.0 0.0 301.7 \n \n21,922.0 (1,149.5) 4,974.5 2,783.8 \n0.0 0.0 (20,664.9) 0.0 0.0 0.0 0.0 2,586.9 \n \n24,002.0 (3,000.5) 3,403.6 3,167.0 \n0.0 0.0 (16,603.6) 0.0 0.0 0.0 2,122.7 872.4 \n \n39,729.0 (828.9) \n12,375.8 3,047.8 0.0 0.0 \n(14,121.2) 33,717.7 \n0.0 (2,192.3) 2,029.0 \n195.0 \n \n34,015.0 973.7 \n6,201.3 3,267.7 \n0.0 0.0 0.0 0.0 2,168.0 24,199.5 433.0 (197.3) \n \n6,623.0 420.3 \n3,381.4 4,021.0 \n0.0 0.0 0.0 0.0 0.0 0.0 0.0 (281.8) \n \n(3,737.0) (320.5) \n1,053.3 3,556.9 \n0.0 0.0 36,404.3 0.0 0.0 0.0 0.0 (846.1) \n \nTotal \n \n$ (7,802.5) $ 3,216.3 $ (24,072.6) $ 1,421.2 $ 18,083.4 $ 28,335.7 $ 84,376.3 $ 74,519.0 $ 18,477.2 $ 35,243.2 \n \n Analysis of Change in Unfunded Accrued Liability (UAL) \n \n2016 \n \n2015 \n \n2014 \n \n2013 \n \n2012 \n \n2011 \n \n2010 \n \n2009 \n \n2008 \n \n2007 \n \nActuarial Section \n \n(continued) 119 \n \nGJRS \n \nInterest (7.50) added to \n \n$ \n \nprevious UAL \n \nAccrued liability contribution \n \nExperience: Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Salary increases Method changes Amendments (COLAs) Assumption changes Data changes Programming modification Misc. changes \n \nTotal \n \n$ \n \nLRS \n \nInterest (7.50) added to \n \n$ \n \nprevious UAL \n \nAccrued liability contribution \n \nExperience: Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Method changes Amendments No COLAs Assumption changes Data changes Misc. changes \n \nTotal \n \n$ \n \nAmount of Increase (Decrease) (in Thousands) \n \n(3,457.6) $ (2,259.9) $ (1,207.3) $ (1,977.2) $ (2,774.8) $ (2,891.5) $ (2,636.2) $ (3,360.0) $ (3,585.9) $ \n \n(746.2) \n \n3,754.1 \n \n5,803.3 \n \n5,187.8 \n \n4,710.8 \n \n4,079.8 \n \n4,592.1 \n \n3,596.2 \n \n4,498.3 \n \n562.3 1,530.2 \n872.4 1,190.9 \n209.7 0.0 \n3,179.6 0.0 0.0 0.0 \n1,086.9 \n4,428.2 \n \n(5,855.8) 639.6 (370.0) \n1,539.1 (8,848.5) \n0.0 0.0 (5,030.9) 0.0 0.0 464.1 \n \n(6,807.0) 2,138.5 (5,962.8) 1,272.3 (10,382.5) \n0.0 0.0 0.0 0.0 0.0 1,110.1 \n \n$ (15,968.2) $ (14,035.4) $ \n \n4,949.6 533.8 \n3,941.4 3,138.0 (4,620.6) (6,827.0) \n0.0 0.0 0.0 4,606.4 1,333.8 \n10,266.0 $ \n \n8,638.5 376.9 \n2,080.7 442.3 \n(4,536.5) 0.0 \n(870.0) 0.0 0.0 \n1,648.9 917.5 \n \n9,404.0 2,076.8 \n(276.3) 750.1 1,265.9 \n0.0 0.0 0.0 0.0 0.0 (12,852.1) \n \n16,228.0 560.9 \n2,290.6 0.0 \n(10,213.5) 0.0 0.0 \n(14,826.5) 579.1 0.0 21.3 \n \n13,941.0 1,102.3 1,982.9 967.2 \n(10,561.2) 0.0 \n(2,359.4) 0.0 \n4,581.2 0.0 \n(240.6) \n \n3,164.0 409.3 \n1,243.3 354.2 \n(3,432.4) 0.0 \n1,265.0 0.0 0.0 0.0 \n(903.4) \n \n10,634.3 $ 1,556.7 $ (3,404.2) $ 9,649.6 $ 3,102.3 $ \n \nAmount of Increase (Decrease) (in Thousands) \n \n(445.9) $ \n \n(421.9) $ \n \n(343.3) $ \n \n(301.8) $ \n \n(302.5) $ \n \n(343.4) $ \n \n(508.5) $ \n \n(468.9) $ (426.9) $ \n \n338.3 \n \n173.4 \n \n161.9 \n \n(62.4) \n \n33.9 \n \n107.1 \n \n(32.5) \n \n(21.1) \n \n(26.3) \n \n24.1 (66.1) (198.9) 26.8 \n0.0 51.5 (418.2) \n0.0 0.0 (4.7) \n(693.1) $ \n \n(491.6) (50.8) (10.1) 35.1 0.0 0.0 \n(452.6) 852.3 \n0.0 46.2 \n(320.0) $ \n \n(576.5) 323.8 (347.5) 135.2 \n0.0 0.0 (470.8) 0.0 0.0 69.9 \n(1,047.3) $ \n \n513.9 (29.6) 17.4 144.5 (418.0) (488.1) \n0.0 0.0 0.0 71.1 \n(553.1) $ \n \n829.0 19.1 (84.3) 16.9 0.0 \n(549.7) 0.0 0.0 0.0 \n46.4 \n8.8 $ \n \n906.2 (18.7) 254.5 74.0 \n0.0 (481.8) \n0.0 0.0 0.0 46.9 \n544.9 $ \n \n1,534.0 339.2 105.1 98.8 0.0 (465.3) 0.0 975.2 114.8 41.6 \n2,202.4 $ \n \n1,307.4 240.7 (5.7) 0.0 0.0 0.0 0.0 0.0 \n(1,529.1) (51.7) \n(528.4) $ \n \n241.7 (2.2) \n(429.8) 35.9 0.0 0.0 0.0 0.0 0.0 47.4 \n(560.2) $ \n \n(3,729.5) \n3,953.2 \n(1,026.0) (154.4) \n(1,614.7) 659.5 369.8 0.0 24.1 0.0 0.0 0.0 \n3,433.5 1,915.5 \n(432.3) \n(31.1) \n(155.0) 119.4 423.8 \n0.0 0.0 0.0 0.0 0.0 0.0 147.9 72.7 \n \n Analysis of Change in Unfunded Accrued Liability (UAL) \n \nGMPF* \nInterest (7.50) added to previous UAL \nAccrued liability contribution \nExperience: Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Method changes Assumption changes Expense Deficit Misc. changes \nTotal \n \n2016 \n \n2015 \n \n2014 \n \n2013 \n \n2012 \n \n2011 \n \nAmount of Increase (Decrease) (in Thousands) \n \n$ 1,407.5 $ 1,316.3 $ \n \n1,344.3 $ \n \n1,360.8 $ \n \n1,354.9 $ \n \n1,216.1 \n \n(1,698.6) \n \n(1,765.6) \n \n(1,775.3) \n \n(1,661.5) \n \n(1,502.4) \n \n(1,173.3) \n \n59.0 119.3 233.3 165.1 \n0.0 0.0 0.0 744.4 \n$ 1,030.0 \n \n(203.0) 126.1 120.5 236.9 \n0.0 985.8 \n0.0 398.7 \n$ 1,215.7 $ \n \n(247.0) 88.8 (87.9) \n142.6 0.0 0.0 0.0 \n161.1 \n(373.4) $ \n \n39.3 80.2 186.4 137.8 (393.0) \n0.0 0.0 30.6 \n(219.4) $ \n \n107.0 68.3 17.9 \n127.1 0.0 0.0 0.0 \n(93.6) \n79.2 $ \n \n113.8 58.5 205.4 1,469.6 \n0.0 0.0 37.0 (77.0) \n1,850.1 \n \n*Note: Data prior to 2011 is not available for GMPF. \n \n120 \n \nActuarial Section \n \nSEAD-OPEB: Data is not available. \n \n Actuarial Section \n \nSolvency Test Results \n(Dollar amounts in thousands) \nERS \n \nActuarial Valuation as of 7/1 \n2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n \nRetirants \u0026 Beneficiaries \n \nActive Member (Employer \nFunded Portion) \n \nValuation Assets \n \n(1) \n \n(2) \n \n$ 645,907 $ 9,020,890 $ \n \n616,177 \n \n9,756,529 \n \n589,012 \n \n10,034,939 \n \n551,607 \n \n10,652,040 \n \n503,867 \n \n11,058,344 \n \n460,861 \n \n11,420,011 \n \n405,841 \n \n11,935,364 \n \n385,058 \n \n12,108,737 \n \n367,462 \n \n12,520,321 \n \n368,281 \n \n12,592,980 \n \n(3) \n \n5,218,382 $ 13,843,689 \n \n5,308,151 \n \n14,017,346 \n \n5,254,071 \n \n13,613,606 \n \n5,091,705 \n \n13,046,193 \n \n5,094,694 \n \n12,667,557 \n \n4,897,050 \n \n12,260,595 \n \n4,641,244 \n \n12,129,803 \n \n4,498,168 \n \n12,376,120 \n \n4,211,744 \n \n12,675,649 \n \n4,238,427 \n \n12,854,518 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \n(2) \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n98.2% 99.0% 98.3% 99.2% \n \n(3) \n80.0% 68.7% 56.9% 36.2% 21.7% \n7.8% 0.0% 0.0% 0.0% 0.0% \n \nPSERS \n \nActuarial Valuation as of 7/1 \n2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n \nRetirants \u0026 Beneficiaries \n \nActive Member (Employer \nFunded Portion) \n \nValuation Assets \n \n(1) \n$ 14,796 $ 15,285 15,862 16,361 16,627 16,917 17,016 16,995 17,196 17,413 \n \n(2) \n456,868 $ 469,601 506,659 528,808 532,509 537,284 549,796 566,344 585,471 609,807 \n \n(3) \n274,414 $ 286,064 300,711 330,227 336,790 341,123 343,444 341,026 364,742 361,663 \n \n785,460 791,855 769,618 737,406 719,601 710,915 727,268 765,450 805,277 834,554 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \n(2) \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \n(3) \n100.0% 100.0% \n82.2% 58.2% 50.6% 45.9% 46.7% 53.4% 55.5% 57.3% \n \nGJRS \n \nActuarial Valuation as of 7/1 \n2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n(1) \n$ 52,707 59,838 61,188 67,293 71,047 73,998 73,949 80,007 84,170 91,991 \n \nRetirants \u0026 Beneficiaries \n \nActive Member (Employer \nFunded Portion) \n \n(2) \n \n$ \n \n87,333 $ \n \n90,601 \n \n108,923 \n \n117,730 \n \n128,991 \n \n141,880 \n \n162,364 \n \n162,527 \n \n174,147 \n \n180,107 \n \n(3) \n109,238 118,077 112,363 96,473 90,440 92,984 99,479 100,894 91,981 104,642 \n \nValuation Assets \n$ 297,090 313,315 317,624 320,050 327,483 335,225 351,889 373,560 396,399 418,412 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \n(2) \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \n(3) \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \n(continued) 121 \n \n Actuarial Section \n \nSolvency Test Results \n(Dollar amounts in thousands) \nLRS \n \nActuarial Valuation as of 7/1 \n2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n(1) \n$ 2,484 2,853 2,908 3,166 2,921 3,185 2,951 3,430 3,287 3,630 \n \nRetirants \u0026 Beneficiaries \n \nActive Member (Employer \nFunded Portion) \n \n(2) \n$ 19,847 $ 19,366 18,465 19,208 19,759 19,200 19,623 19,006 19,873 19,202 \n \n(3) \n2,026 2,235 2,150 2,629 2,564 2,581 2,330 2,477 2,530 2,701 \n \nValuation Assets \n$ 30,049 30,706 30,303 29,581 29,278 28,990 29,481 30,538 31,635 32,171 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \n(2) \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \n(3) \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \nGMPF \n \nActuarial Valuation as of 7/1 \n2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n \n(1) \n \n$ \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \nRetirants \u0026 Beneficiaries \n \nActive Member (Employer \nFunded Portion) \n \n(2) \n$ 7,655 9,449 \n12,742 14,015 15,379 17,518 19,396 21,389 24,075 26,337 \n \n(3) \n$ 12,232 9,675 8,279 9,758 11,388 \n10,713 10,660 10,426 11,138 11,874 \n \nValuation Assets \n$ 4,165 5,269 6,413 7,558 8,702 \n10,087 12,131 14,264 16,446 18,414 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n \n(2) \n \n(3) \n \nn/a \n \n54.4% \n \n0.0% \n \nn/a \n \n55.8% \n \n0.0% \n \nn/a \n \n50.3% \n \n0.0% \n \nn/a \n \n53.9% \n \n0.0% \n \nn/a \n \n56.6% \n \n0.0% \n \nn/a \n \n57.6% \n \n0.0% \n \nn/a \n \n62.5% \n \n0.0% \n \nn/a \n \n66.7% \n \n0.0% \n \nn/a \n \n68.3% \n \n0.0% \n \nn/a \n \n69.9% \n \n0.0% \n \nSEAD-OPEB  \n \nActuarial Valuation as of 7/1 \n2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n \n(1) \n \n$ \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \nRetirants \u0026 Beneficiaries \n \nActive Member (Employer \nFunded Portion) \n \n(2) \n$ 436,530 486,569 524,718 516,633 503,327 528,165 586,228 621,502 621,426 652,291 \n \n(3) \n$ 206,001 213,315 208,953 174,368 175,093 176,452 168,558 166,518 148,321 180,078 \n \nValuation Assets \n$ 778,048 737,114 628,199 680,449 807,893 818,284 907,831 \n1,037,901 1,046,559 1,028,541 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n \n(2) \n \n(3) \n \nn/a \n \n100.0% \n \n100.0% \n \nn/a \n \n100.0% \n \n100.0% \n \nn/a \n \n100.0% \n \n49.5% \n \nn/a \n \n100.0% \n \n93.9% \n \nn/a \n \n100.0% \n \n100.0% \n \nn/a \n \n100.0% \n \n100.0% \n \nn/a \n \n100.0% \n \n100.0% \n \nn/a \n \n100.0% \n \n100.0% \n \nn/a \n \n100.0% \n \n100.0% \n \nn/a \n \n100.0% \n \n100.0% \n \n SEAD-OPEB was created effective July 1, 2007. 122 \n \n(continued) \n \n Statistical Section \n \nStatistical Section \n \nERS \n \nGMPF \n \nGJRS \n \nERSGA \n \nLRS \n \nPSR \n \nGDCP \n \nPSERS \n \nE RSGA \n \nServing those who serve Georgia \n \nEmployees' Retirement System of Georgia \n \n Statistical Section \nIntroduction \nThe objective of the statistical section is to provide a historical perspective, context and relevant details to assist readers in evaluating the condition of the plans. All nonaccounting data is taken from ERSGA's internal sources except for information which is derived from the actuarial valuations. FY2010 was the first year ERSGA added this information in their Annual Financial Report. Therefore, historical detail may not be complete for some schedules. Statistical information is not presented for SCJRF and DARF as both plans are immaterial, have no active members, and are closed to new members. \nFiduciary Funds Financial Trends \nThe following schedules have been included to help the reader understand how the System's financial position has changed over the past 10 years: \nAdditions by Source Deductions by Type Changes in Fiduciary Net Position Operational Trends The following schedules have been included to help the readers understand how the System's financial report relates to the services provided by the System and the activities it performs: Retiree Information Withdrawal (Refund) Data New Retiree Elections Overall Plan Statistics \nProprietary Fund \nSchedule of Revenue and Expenses 10-year Schedule of Membership \n124 \n \n 125 \n \n(continued) \n \n2008 \n \n2009 \n \n2010 \n \n2011 \n \n2012 \n \n2013 \n \n2014 \n \n2015 \n \nERS \n \nEmployee Contributions \n \n$ \n \n48,324 \n \n43,978 \n \n42,052 \n \n39,480 \n \n36,561 \n \n38,955 \n \n32,423 \n \nEmployer Contributions \n \n286,256 \n \n281,206 \n \n263,064 261,132 274,034 358,992 418,807 \n \nNonemployer Contributions \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n10,945 \n \nNet Investment Income (Loss) \n \n(482,679) (1,726,302) 1,176,741 2,269,270 231,782 1,495,849 2,021,748 \n \nOther \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n33,713 505,668 \n12,495 474,147 \n10 \n \nTotal Additions to (Deductions from) Fiduciary Net Position \n \n$ (148,099) (1,401,118) 1,481,857 2,569,882 542,377 1,893,796 2,483,923 1,026,033 \n \nPSERS \n \nEmployee Contributions \n \n$ \n \nEmployer Contributions \n \nNonemployer Contributions \n \nNet Investment Income (Loss) \n \nOther \n \nTotal Additions to (Deductions \n \nfrom) Fiduciary Net Position \n \n$ \n \n1,451 2,869 \n-- (27,052) \n588 \n(22,144) \n \n1,472 5,096 \n-- (97,156) \n588 \n(90,000) \n \n1,483 5,530 \n-- 66,404 \n-- \n \n1,451 7,509 \n-- 128,096 \n-- \n \n1,426 15,884 \n-- 13,554 \n-- \n \n1,538 24,829 \n-- 88,067 \n-- \n \n1,659 -- \n27,160 123,799 \n-- \n \n73,417 137,056 \n \n30,864 \n \n114,434 152,618 \n \n1,800 -- \n28,461 30,129 \n-- \n60,390 \n \nGJRS \n \nEmployee Contributions \n \n$ \n \nEmployer Contributions \n \nNonemployer Contributions \n \nNet Investment Income (Loss) \n \nOther \n \nTotal Additions to (Deductions \n \nfrom) Fiduciary Net Position \n \n$ \n \n4,698 2,395 \n-- (10,702) \n175 \n(3,434) \n \n4,612 1,703 \n-- (38,164) \n175 \n(31,674) \n \n5,018 3,369 \n-- 27,378 \n175 \n35,940 \n \n4,721 1,163 \n-- 57,330 \n-- \n \n4,904 2,083 \n-- 6,571 \n-- \n \n63,214 \n \n13,558 \n \n4,408 2,279 \n-- 42,104 \n-- \n \n4,731 1,373 1,002 60,012 \n-- \n \n48,791 \n \n67,118 \n \n5,061 2,696 1,564 14,697 \n-- \n24,018 \n \nLRS \n \nEmployee Contributions \n \n$ \n \nEmployer Contributions \n \nNonemployer Contributions \n \nNet Investment Income (Loss) \n \nOther \n \nTotal Additions to (Deductions \n \nfrom) Fiduciary Net Position \n \n$ \n \n320 73 -- \n(1,051) 110 \n(548) \n \n320 71 -- \n(3,772) 110 \n(3,271) \n \n318 75 -- \n2,610 110 \n3,113 \n \n320 75 -- \n5,194 -- \n5,589 \n \n323 76 -- 550 -- \n949 \n \n373 128 \n-- 3,573 \n-- \n4,074 \n \n282 45 -- \n4,969 -- \n5,296 \n \n327 -- -- 1,189 -- \n1,516 \n \n2016 \n \n2017 \n \n31,961 583,082 \n12,484 141,292 \n10 \n \n35,863 613,201 \n12,080 1,475,626 \n10 \n \n768,829 2,136,780 \n \n1,925 -- \n28,580 9,809 -- \n \n2,084 -- \n26,277 97,715 \n-- \n \n40,314 \n \n126,076 \n \n5,507 4,754 2,869 5,055 \n-- \n18,185 \n \n4,906 4,081 2,603 49,259 \n-- \n60,849 \n \n328 \n \n327 \n \n-- \n \n-- \n \n-- \n \n-- \n \n363 \n \n3,741 \n \n-- \n \n-- \n \n691 \n \n4,068 \n \nStatistical Section \nAdditions by Source - Contribution/Investment Income (in thousands) \n \n 126 \n \n(continued) \n \nGMPF \nEmployee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \nSEAD - OPEB \nEmployee Contributions Employer Contributions Insurance Premiums Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \nDefined Contribution Plan - GDCP \nEmployee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \n \n2008 \n \n2009 \n \n2010 \n \n2011 \n \n2012 \n \n2013 \n \n2014 \n \n2015 \n \n2016 \n \n2017 \n \n$ \n \n-- \n \n-- \n \n1,103 \n \n1,323 \n \n-- \n \n-- \n \n(191) \n \n(657) \n \n-- \n \n-- \n \n$ \n \n912 \n \n666 \n \n-- 1,434 \n-- 565 \n-- \n1,999 \n \n-- 1,282 \n-- 1,465 \n-- \n \n-- 1,521 \n-- 221 \n-- \n \n2,747 \n \n1,742 \n \n-- 1,703 \n-- 1,374 \n-- \n \n-- 1,892 \n-- 2,179 \n-- \n \n3,077 \n \n4,071 \n \n-- 1,893 \n-- 585 \n-- \n2,478 \n \n-- 1,990 \n-- 240 \n-- \n2,230 \n \n-- 2,018 \n-- 2,262 \n-- \n4,280 \n \n$ \n \n-- \n \n-- \n \n-- \n \n-- \n \n7,756 \n \n7,551 \n \n(27,032) (96,424) \n \n-- \n \n-- \n \n-- -- 6,755 69,340 -- \n \n-- -- 6,437 144,270 -- \n \n-- -- 5,532 17,193 -- \n \n-- -- 5,075 108,148 -- \n \n-- -- 4,502 154,868 -- \n \n-- -- 4,187 37,876 -- \n \n-- -- 3,931 12,559 -- \n \n-- 1 3,793 125,550 -- \n \n$ (19,276) (88,873) \n \n76,095 150,707 22,725 \n \n113,223 159,370 \n \n42,063 \n \n16,490 129,344 \n \n$ 15,860 \n \n15,608 \n \n16,002 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n(331) (5,294) 10,319 \n \n-- \n \n-- \n \n-- \n \n17,656 -- -- \n775 -- \n \n17,171 -- -- \n652 -- \n \n16,676 -- -- \n137 -- \n \n16,290 -- -- \n1,368 -- \n \n15,655 -- -- \n1,326 -- \n \n14,708 -- -- \n5,591 -- \n \n14,921 -- -- \n(1,056) -- \n \n$ 15,529 \n \n10,314 \n \n26,321 \n \n18,431 \n \n17,823 \n \n16,813 \n \n17,658 \n \n16,981 \n \n20,299 13,865 \n \nStatistical Section \nAdditions by Source - Contribution/Investment Income (in thousands) \n \n Statistical Section \nAdditions by Source - Contribution/Investment Income (in thousands) \n127 \n \nDefined Contribution Plan - 401(k) \nEmployee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \nDefined Contribution Plan - 457 \nEmployee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \n \n2008 \n \n2009 \n \n2010 \n \n2011 \n \n2012 \n \n2013 \n \n2014 \n \n2015 \n \n2016 \n \n2017 \n \n$ 38,927 \n \n33,432 \n \n14,193 \n \n6,939 \n \n-- \n \n-- \n \n(21,302) (50,330) \n \n921 \n \n750 \n \n33,899 15,664 \n-- 25,283 \n385 \n \n38,006 25,442 \n-- 59,581 \n446 \n \n40,331 4,355 \n-- 3,112 \n800 \n \n44,428 18,279 \n-- 52,835 \n948 \n \n53,724 21,513 \n-- 78,583 \n1,122 \n \n64,870 25,615 \n-- 17,665 \n-- \n \n79,422 29,982 \n-- 5,281 1,429 \n \n93,608 36,761 \n-- 88,771 \n1,584 \n \n$ 32,739 \n \n(9,209) \n \n75,231 123,475 \n \n48,598 116,490 154,942 109,448 116,114 220,724 \n \n$ \n \n26,466 \n \n24,087 \n \n-- \n \n-- \n \n-- \n \n-- \n \n(31,343) (70,066) \n \n761 \n \n626 \n \n21,171 -- -- \n35,806 468 \n \n20,108 -- -- \n70,963 339 \n \n19,551 -- -- \n7,785 -- \n \n18,753 -- -- \n55,737 -- \n \n17,623 -- -- \n73,746 -- \n \n17,445 -- -- \n18,991 -- \n \n17,413 -- -- \n7,855 -- \n \n18,899 -- -- \n59,541 -- \n \n$ \n \n(4,116) (45,353) \n \n57,445 \n \n91,410 \n \n27,336 \n \n74,490 \n \n91,369 \n \n36,436 \n \n25,268 \n \n78,440 \n \n Statistical Section \n \nDeductions by Type (in thousands) \n \nERS \nFiscal Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nBenefit Payments \n \nService \n \nPartial Lump-Sum \nOption \n \n$ \n \n797,052 \n \n889,669 \n \n878,482 \n \n921,136 \n \n964,485 \n \n1,007,816 \n \n1,051,993 \n \n1,076,676 \n \n1,092,909 \n \n1,130,996 \n \n24,792 22,011 23,480 30,946 31,963 35,933 24,567 24,391 19,154 19,765 \n \nDisability \n131,709 135,743 146,031 140,849 143,317 145,152 146,245 147,418 147,706 151,772 \n \nSurvivor Benefits \n66,397 69,735 82,676 75,891 76,973 80,300 83,193 85,794 87,843 91,750 \n \nTotal Benefit Payments \n$ 1,019,950 1,117,158 1,130,669 1,168,822 1,216,738 1,269,201 1,305,998 1,334,278 1,347,633 1,394,283 \n \nNet Administrative \nExpenses \n18,805 16,809 14,505 14,431 12,051 12,889 \n7,440 7,872 8,506 8,732 \n \nRefunds \n \nTotal Deductions \nfrom Fiduciary Net Position \n \n7,815 $ 6,597 6,483 7,515 7,767 7,390 8,757 7,450 7,087 9,033 \n \n1,046,570 1,140,564 1,151,657 1,190,768 1,236,556 1,289,480 1,322,195 1,349,600 1,363,226 1,412,048 \n \nPSERS \n \nBenefit Payments \n \nFiscal Year \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nService \n \n$ \n \n41,607 \n \n45,159 \n \n45,741 \n \n46,548 \n \n46,911 \n \n47,805 \n \n48,911 \n \n49,704 \n \n50,572 \n \n52,012 \n \nDisability \n4,956 5,232 5,402 5,369 5,369 5,328 5,280 5,227 5,172 5,117 \n \nSurvivor Benefits \n1,682 1,806 2,052 2,063 1,903 1,908 1,998 2,041 2,160 2,249 \n \nTotal Benefit Payments \n \n$ \n \n48,245 \n \n52,197 \n \n53,195 \n \n53,980 \n \n54,183 \n \n55,041 \n \n56,189 \n \n56,972 \n \n57,903 \n \n59,378 \n \nNet Administrative \nExpenses \n588 588 1,956 2,046 2,040 2,021 1,450 1,545 1,321 1,308 \n \nRefunds \n308 261 251 267 349 492 514 456 465 1,031 \n \nTotal Deductions from \nFiduciary Net Position \n \n$ \n \n49,141 \n \n53,046 \n \n55,402 \n \n56,293 \n \n56,572 \n \n57,554 \n \n58,153 \n \n58,973 \n \n59,689 \n \n61,717 \n \nGJRS \n \nBenefit Payments \n \nFiscal Year \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nService \n \n$ \n \n8,259 \n \n9,453 \n \n10,633 \n \n11,245 \n \n12,608 \n \n14,273 \n \n15,305 \n \n16,084 \n \n16,677 \n \n19,349 \n \nDisability \n110 112 114 112 113 112 112 112 112 114 \n \nSurvivor Benefits \n1,498 1,546 1,618 1,654 1,695 1,865 2,024 2,169 2,222 2,321 \n \nTotal Benefit Payments \n \n$ \n \n9,867 \n \n11,111 \n \n12,365 \n \n13,011 \n \n14,416 \n \n16,250 \n \n17,441 \n \n18,365 \n \n19,011 \n \n21,784 \n \nNet Administrative \nExpenses \n175 175 270 290 310 313 754 819 754 728 \n \nRefunds \n14 263 139 260 146 105 \n22 772 261 166 \n \nTotal Deductions from \nFiduciary Net Position \n \n$ \n \n10,056 \n \n11,549 \n \n12,774 \n \n13,561 \n \n14,872 \n \n16,668 \n \n18,217 \n \n19,956 \n \n20,026 \n \n22,678 \n \n128 \n \n(continued) \n \n Statistical Section \n \nDeductions by Type (in thousands) \n \nLRS Benefit Payments \n \nFiscal Year \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nService \n \n$ \n \n1,228 \n \n1,265 \n \n1,308 \n \n1,309 \n \n1,364 \n \n1,376 \n \n1,336 \n \n1,315 \n \n1,294 \n \n1,323 \n \nSurvivor Benefits \n406 425 436 452 446 448 465 441 429 440 \n \nTotal Benefit Payments \n \n$ \n \n1,634 \n \n1,690 \n \n1,744 \n \n1,761 \n \n1,810 \n \n1,824 \n \n1,801 \n \n1,756 \n \n1,724 \n \n1,763 \n \nNet Administrative \nExpenses \n110 110 120 131 110 119 152 169 313 224 \n \nRefunds \n \nTotal Deductions from \nFiduciary Net Position \n \n65 $ 49 47 60 74 88 30 26 38 75 \n \n1,809 1,849 1,911 1,952 1,994 2,031 1,983 1,951 2,075 2,062 \n \nGMPF \n \nFiscal Year \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nBenefit Payments \n \nService* \n \nTotal Benefit Payments \n \n$ \n \n303 $ \n \n303 \n \n382 \n \n382 \n \n489 \n \n489 \n \n579 \n \n579 \n \n678 \n \n678 \n \n772 \n \n772 \n \n841 \n \n841 \n \n896 \n \n896 \n \n963 \n \n963 \n \n1,042 \n \n1,042 \n \nNet Administrative \nExpenses \n \nTotal Deductions from \nFiduciary Net Position \n \n-- $ -- 43 37 34 31 110 121 262 244 \n \n303 382 532 616 712 803 951 1,017 1,225 1,286 \n \n*The only type of retirement in GMPF is a service retirement. \n \nSEAD-OPEB \nFiscal Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nBenefit Payments \n \nDeath Benefits** \n \n$ \n \n21,455 \n \n19,839 \n \n23,642 \n \n23,060 \n \n24,855 \n \n28,482 \n \n28,891 \n \n32,979 \n \n33,911 \n \n36,058 \n \nTotal Benefit Payments \n \n$ \n \n21,455 \n \n19,839 \n \n23,642 \n \n23,060 \n \n24,855 \n \n28,482 \n \n28,891 \n \n32,979 \n \n33,911 \n \n36,058 \n \nNet Administrative \nExpenses \n \nTotal Deductions from \nFiduciary Net Position \n \n203 $ 203 203 203 203 203 414 428 599 576 \n \n21,658 20,042 23,845 23,263 25,058 28,685 29,305 33,407 34,510 36,634 \n \n**The only type of benefit in SEAD-OPEB is a death benefit. \n \n(continued) 129 \n \n Statistical Section \n \nDeductions by Type (in thousands) \n \nDefined Contribution Plan - GDCP \n \nFiscal Year \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nBenefit Payments \n \nPeriodic Payments \n \nTotal Benefit Payments \n \nNet Administrative \nExpenses \n \n$ \n \n9$ \n \n9 \n \n9 \n \n9 \n \n9 \n \n9 \n \n9 \n \n9 \n \n11 \n \n11 \n \n9 \n \n9 \n \n9 \n \n9 \n \n-- \n \n-- \n \n-- \n \n35 \n \n-- \n \n-- \n \n310 310 1,110 1,180 1,138 1,160 991 990 766 785 \n \nRefunds \n \nTotal Deductions from \nFiduciary Net Position \n \n11,514 $ 10,377 10,613 11,390 12,749 14,415 17,721 22,340 11,911 11,544 \n \n11,833 10,696 11,732 12,579 13,898 15,584 18,721 23,330 12,712 12,329 \n \nDefined Contribution Plan - 401(k) \n \nFiscal Year \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nBenefit Payments \n \nDistributions \n \n$ \n \n26,548 \n \n21,105 \n \n23,618 \n \n42,457 \n \n36,986 \n \n57,351 \n \n43,133 \n \n95,428 \n \n46,508 \n \n55,866 \n \nTotal Benefit Payments \n \n$ \n \n26,548 \n \n21,105 \n \n23,618 \n \n42,457 \n \n36,986 \n \n57,351 \n \n43,133 \n \n95,428 \n \n46,508 \n \n55,866 \n \nNet Administrative \nExpenses \n \nTotal Deductions from \nFiduciary Net Position \n \n1,472 $ 1,028 \n829 2,054 2,111 2,457 2,300 2,755 2,832 3,096 \n \n28,020 22,133 24,447 44,511 39,097 59,808 45,433 98,183 49,340 58,962 \n \nDefined Contribution Plan - 457 \n \nFiscal Year \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nBenefit Payments \n \nDistributions \n \n$ \n \n41,555 \n \n37,257 \n \n37,014 \n \n44,773 \n \n41,835 \n \n63,388 \n \n45,807 \n \n50,479 \n \n43,288 \n \n38,872 \n \nTotal Benefit Payments \n \n$ \n \n41,555 \n \n37,257 \n \n37,014 \n \n44,773 \n \n41,835 \n \n63,388 \n \n45,807 \n \n50,479 \n \n43,288 \n \n38,872 \n \nNet Administrative \nExpenses \n \nTotal Deductions from \nFiduciary Net Position \n \n1,169 $ 1,769 2,115 1,064 \n910 996 812 866 820 789 \n \n42,724 39,026 39,129 45,837 42,745 64,384 46,619 51,345 44,108 39,661 \n \n130 \n \n (continued) 131 \n \nERS \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nPSERS \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nGJRS \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nLRS \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nGMPF \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \n \n2008 \n \n2009 \n \n2010 \n \n2011 \n \n2012 \n \n2013 \n \n2014 \n \n2015 \n \n2016 \n \n2017 \n \n$ (148,099) (1,401,118) 1,481,857 2,569,882 \n \n1,046,570 1,140,564 1,151,657 1,190,768 \n \n-- \n \n-- \n \n-- \n \n-- \n \n(1,194,669) (2,541,682) 330,200 1,379,114 \n \n542,377 1,236,556 \n(12,724) (706,903) \n \n1,893,796 1,289,480 \n(5,009) 599,307 \n \n2,483,923 1,322,195 \n-- 1,161,728 \n \n1,026,033 1,349,600 \n-- (323,567) \n \n768,829 1,363,226 \n-- (594,397) \n \n2,136,780 1,412,048 \n-- 724,732 \n \n(22,144) 49,141 \n-- (71,285) \n \n(90,000) 53,046 \n-- (143,046) \n \n73,417 55,402 \n-- 18,015 \n \n137,056 56,293 -- 80,763 \n \n30,864 56,572 \n-- (25,708) \n \n114,434 57,554 \n-- 56,880 \n \n152,618 58,153 -- 94,465 \n \n60,390 58,973 \n-- 1,417 \n \n40,314 59,689 \n-- (19,375) \n \n126,076 61,717 -- 64,359 \n \n(3,434) 10,056 \n-- (13,490) \n \n(31,674) 11,549 \n-- (43,223) \n \n35,940 12,774 \n-- 23,166 \n \n63,214 13,561 \n-- 49,653 \n \n13,558 14,872 \n-- (1,314) \n \n48,791 16,668 \n-- 32,123 \n \n67,118 18,217 \n-- 48,901 \n \n24,018 19,956 \n-- 4,062 \n \n18,185 20,026 \n-- (1,841) \n \n60,849 22,678 \n-- 38,171 \n \n(548) 1,809 \n-- (2,357) \n \n(3,271) 1,849 \n-- (5,120) \n \n3,113 1,911 \n-- 1,202 \n \n5,589 1,952 \n-- 3,637 \n \n949 1,994 \n-- (1,045) \n \n4,074 2,031 \n-- 2,043 \n \n5,296 1,983 \n-- 3,313 \n \n1,516 1,951 \n-- (435) \n \n691 2,075 \n-- (1,384) \n \n4,068 2,062 \n-- 2,006 \n \n912 \n \n666 \n \n1,999 \n \n2,747 \n \n1,742 \n \n3,077 \n \n4,071 \n \n2,478 \n \n2,230 \n \n4,280 \n \n303 \n \n382 \n \n532 \n \n616 \n \n712 \n \n803 \n \n951 \n \n1,017 \n \n1,225 \n \n1,286 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n609 \n \n284 \n \n1,467 \n \n2,131 \n \n1,030 \n \n2,274 \n \n3,120 \n \n1,461 \n \n1,005 \n \n2,994 \n \nChanges in Fiduciary Net Position (in thousands) \n \nStatistical Section \n \n 132 \n \nSEAD - OPEB \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nDefined Contribution Plan - GDCP \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nDefined Contribution Plan - 401(k) \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nDefined Contribution Plan - 457 \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \n \n2008 \n \n2009 \n \n2010 \n \n2011 \n \n2012 \n \n2013 \n \n2014 \n \n2015 \n \n2016 \n \n2017 \n \n$ (19,276) (88,873) \n \n21,658 \n \n20,042 \n \n-- \n \n-- \n \n(40,934) (108,915) \n \n76,095 23,845 \n-- 52,250 \n \n150,707 23,263 -- \n127,444 \n \n22,725 25,058 12,724 10,391 \n \n113,223 28,685 \n5,009 89,547 \n \n159,370 29,305 5 \n130,070 \n \n42,063 33,407 \n2 8,658 \n \n16,490 34,510 \n2 (18,018) \n \n129,344 36,634 -- 92,710 \n \n15,529 11,833 \n-- 3,696 \n \n10,314 10,696 \n-- (382) \n \n26,321 11,732 \n-- 14,589 \n \n18,431 12,579 \n-- 5,852 \n \n17,823 13,898 \n-- 3,925 \n \n16,813 15,584 \n-- 1,229 \n \n17,658 18,721 \n-- (1,063) \n \n16,981 23,330 \n-- (6,349) \n \n20,299 12,712 \n-- 7,587 \n \n13,865 12,329 \n-- 1,536 \n \n32,739 28,020 \n-- 4,719 \n \n(9,209) 22,133 \n-- (31,342) \n \n75,231 24,447 \n-- 50,784 \n \n123,475 44,511 -- 78,964 \n \n48,598 39,097 \n-- 9,501 \n \n116,490 59,808 \n-- 56,682 \n \n154,942 45,433 -- \n109,509 \n \n109,448 98,183 -- 11,265 \n \n116,114 49,340 \n-- 66,774 \n \n220,724 58,962 -- \n161,762 \n \n(4,116) 42,724 \n-- (46,840) \n \n(45,353) 39,026 \n-- (84,379) \n \n57,445 39,129 \n-- 18,316 \n \n91,410 45,837 \n-- 45,573 \n \n27,336 42,745 \n-- (15,409) \n \n74,490 64,384 \n-- 10,106 \n \n91,369 46,619 \n-- 44,750 \n \n36,436 51,345 \n-- (14,909) \n \n25,268 44,108 \n-- (18,840) \n \n78,440 39,661 \n-- 38,779 \n \nChanges in Fiduciary Net Position (in thousands) \n \nStatistical Section \n \n Number of Retirees \n \nStatistical Section \n \n133 \n \n Average Monthly Payments to Retirees \n \nStatistical Section \n \n134 \n \n Annual Benefit \n \nStatistical Section \n \n135 \n \n Withdrawal Statistics \n \nStatistical Section \n \nNote: The GMPF Plan does not have a refund feature. 136 \n \n Statistical Section \n \nAverage Monthly Benefit Payment for New Retirees - ERS \n \n10-15 \n \nYears of Credited Service \n \n16-20 \n \n21-25 \n \n26-30 \n \nOver 30 \n \nTotal \n \n2008 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2009 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2010 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2011 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2012 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2013 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2014 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2015 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2016 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2017 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n \n$701.03 $3,025.39 \n309 \n \n$1,068.51 $3,181.44 \n306 \n \n$1,457.03 $3,408.23 \n280 \n \n$1,899.48 $3,767.28 \n290 \n \n$3,576.69 $4,489.73 \n1,032 \n \n$2,342.60 $3,873.97 \n2,217 \n \n$717.65 $3,109.07 \n344 \n \n$1,059.22 $3,179.28 \n320 \n \n$1,458.18 $3,483.90 \n301 \n \n$1,910.75 $3,875.27 \n324 \n \n$3,627.21 $4,548.96 \n949 \n \n$2,272.58 $3,891.02 \n2,238 \n \n$694.23 $3,023.45 \n391 \n \n$1,086.00 $3,345.36 \n324 \n \n$1,502.32 $3,555.21 \n332 \n \n$1,849.65 $3,802.65 \n375 \n \n$3,653.29 $4,588.73 \n981 \n \n$2,247.01 $3,900.93 \n2,403 \n \n$734.74 $3,228.07 \n437 \n \n$1,107.16 $3,205.88 \n322 \n \n$1,504.51 $3,478.73 \n389 \n \n$1,995.24 $3,762.88 \n461 \n \n$3,575.54 $4,532.07 \n885 \n \n$2,143.95 $3,825.88 \n2,494 \n \n$729.60 $3,040.00 \n518 \n \n$1,247.16 $3,275.37 \n385 \n \n$1,624.82 $3,388.85 \n414 \n \n$2,125.35 $3,807.26 \n486 \n \n$3,708.26 $4,702.47 \n776 \n \n$2,109.84 $3,775.94 \n2,578 \n \n$836.73 $3,391.36 \n684 \n \n$1,183.19 $3,339.84 \n453 \n \n$1,650.14 $3,411.24 \n466 \n \n$2,120.33 $3,765.16 \n780 \n \n$3,487.96 $4,659.17 \n1,033 \n \n$2,088.46 $3,855.98 \n3,416 \n \n$769.91 $3,309.44 \n483 \n \n$1,232.07 $3,337.66 \n306 \n \n$1,527.47 $3,263.54 \n311 \n \n$2,057.32 $3,718.37 \n477 \n \n$3,242.25 $4,486.34 \n542 \n \n$1,870.02 $3,699.86 \n2,119 \n \n$750.98 $3,269.25 \n524 \n \n$1,224.00 $3,443.88 \n316 \n \n$1,620.88 $3,547.63 \n341 \n \n$2,068.82 $3,750.99 \n623 \n \n$3,074.69 $4,536.68 \n561 \n \n$1,837.97 $3,760.27 \n2,365 \n \n$759.54 $3,189.20 \n559 \n \n$1,224.52 $3,376.84 \n340 \n \n$1,760.28 $3,657.08 \n330 \n \n$2,171.75 $3,935.01 \n530 \n \n$2,996.81 $4,618.83 \n466 \n \n$1,783.98 $3,764.34 \n2,225 \n \n$796.76 $3,479.90 \n551 \n \n$1,204.27 $3,405.67 \n395 \n \n$1,786.30 $3,850.73 \n359 \n \n$2,109.53 $3,813.78 \n453 \n \n$2,870.19 $4,595.25 \n470 \n \n$1,732.36 $3,829.66 \n2,228 \n \n137 \n \n(continued) \n \n Statistical Section \n \nAverage Monthly Benefit Payment for New Retirees - PSERS \n \n10-15 \n \nYears of Credited Service \n \n16-20 \n \n21-25 \n \n26-30 \n \nOver 30 \n \nTotal \n \n2008 \nAverage Monthly Benefit Number of Retirees \n2009 \nAverage Monthly Benefit Number of Retirees \n2010 \nAverage Monthly Benefit Number of Retirees \n2011 \nAverage Monthly Benefit Number of Retirees \n2012 \nAverage Monthly Benefit Number of Retirees \n2013 \nAverage Monthly Benefit Number of Retirees \n2014 \nAverage Monthly Benefit Number of Retirees \n2015 \nAverage Monthly Benefit Number of Retirees \n2016 \nAverage Monthly Benefit Number of Retirees \n2017 \nAverage Monthly Benefit Number of Retirees \n \n$149.91 362 \n \n$219.81 199 \n \n$279.58 116 \n \n$349.05 99 \n \n$439.31 98 \n \n$238.04 874 \n \n$156.52 391 \n \n$224.92 200 \n \n$289.93 157 \n \n$357.58 91 \n \n$460.04 90 \n \n$242.89 929 \n \n$157.66 448 \n \n$224.92 200 \n \n$300.93 162 \n \n$359.24 76 \n \n$464.07 105 \n \n$243.41 1,001 \n \n$158.67 463 \n \n$227.68 200 \n \n$297.01 126 \n \n$374.01 79 \n \n$479.42 114 \n \n$245.04 982 \n \n$159.25 480 \n \n$236.46 182 \n \n$303.66 136 \n \n$362.36 74 \n \n$476.51 87 \n \n$238.59 958 \n \n$159.34 580 \n \n$232.10 255 \n \n$300.66 175 \n \n$360.75 113 \n \n$478.49 133 \n \n$245.72 1,256 \n \n$154.20 603 \n \n$227.41 268 \n \n$297.58 147 \n \n$345.98 121 \n \n$437.20 131 \n \n$233.71 1,270 \n \n$155.20 568 \n \n$225.02 254 \n \n$290.82 166 \n \n$360.11 105 \n \n$471.12 99 \n \n$233.25 1,192 \n \n$160.28 529 \n \n$232.09 273 \n \n$298.45 454 \n \n$358.11 103 \n \n$489.48 103 \n \n$242.18 1,162 \n \n$153.93 515 \n \n$226.90 230 \n \n$286.35 126 \n \n$348.16 78 \n \n$437.62 104 \n \n$228.12 1,053 \n \nNote: PSERS is not a final average pay plan. \n \n(continued) 138 \n \n Statistical Section \n \nAverage Monthly Benefit Payment for New Retirees - GJRS \n \n10-15 \n \nYears of Credited Service \n \n16-20 \n \n21-25 \n \n26-30 \n \nOver 30 \n \nTotal \n \n2008 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2009 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2010 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2011 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2012 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2013 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2014 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2015 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2016 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2017 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n \n$2,485.43 $6,662.15 \n4 \n \n0 \n \n$7,368.55 \n \n$4,735.08 \n \n0 \n \n$9,934.33 \n \n$6,342.20 \n \n0 \n \n2 \n \n2 \n \n0 \n \n$4,863.02 \n \n0 \n \n$7,646.23 \n \n0 \n \n8 \n \n$4,874.28 $9,519.58 \n8 \n \n$5,883.17 $8,825.88 \n5 \n \n$7,366.55 $10,071.58 \n7 \n \n$6,630.61 $8,881.08 \n5 \n \n$7,639.64 $10,232.57 \n2 \n \n$6,478.85 $9,506.14 \n27 \n \n$6,337.43 $10,490.01 \n1 \n \n$4,563.90 $7,018.08 \n5 \n \n$7,643.86 $10,490.01 \n2 \n \n$6,422.80 $8,602.74 \n4 \n \n0 \n \n$6,242.00 \n \n0 \n \n$9,150.21 \n \n0 \n \n12 \n \n$4,632.24 $9,211.23 \n4 \n \n$10,170.24 $14,910.13 \n2 \n \n$9,799.81 $13,052.66 \n2 \n \n$8,428.40 $11,264.63 \n3 \n \n0 \n \n$7,614.02 \n \n0 $11,505.85 \n \n0 \n \n11 \n \n$4,204.95 $7,788.39 \n5 \n \n$6,610.26 $9,887.17 \n4 \n \n$7,565.84 $10,361.29 \n4 \n \n$8,791.96 $11,714.95 \n7 \n \n$7,831.84 $10,490.01 \n1 \n \n$6,915.64 $10,035.77 \n20 \n \n$5,179.20 $9,271.48 \n8 \n \n$5,844.29 $8,344.35 \n7 \n \n$6,170.52 $8,370.72 \n7 \n \n$7,954.14 $10,624.52 \n5 \n \n$6,169.77 $8,864.27 \n7 \n \n$6,132.24 $9,010.27 \n34 \n \n$2,989.92 $6,265.39 \n6 \n \n$4,468.12 $7,772.95 \n2 \n \n$6,496.50 $8,998.48 \n7 \n \n0 \n \n$2,703.82 \n \n$4,470.15 \n \n0 \n \n$4,289.57 \n \n$7,166.46 \n \n0 \n \n3 \n \n18 \n \n$4,010.30 $6,937.39 \n2 \n \n$6,317.44 $9,141.51 \n5 \n \n$7,051.15 $9,751.01 \n7 \n \n$7,589.28 $10,165.12 \n2 \n \n$2,406.28 $3,222.98 \n1 \n \n$6,267.69 $8,905.45 \n17 \n \n0 \n \n$6,534.36 \n \n$8,121.58 \n \n0 \n \n$9,655.37 $11,204.04 \n \n0 \n \n6 \n \n2 \n \n0 \n \n$8,635.31 \n \n$7,120.51 \n \n0 $11,566.18 $10,211.83 \n \n0 \n \n1 \n \n9 \n \n$4,519.89 $9,049.84 \n10 \n \n$6,690.09 $9,833.21 \n18 \n \n$8,737.31 $12,013.62 \n13 \n \n$5,895.46 $7,896.41 \n4 \n \n$8,026.56 $10,750.81 \n10 \n \n$6,964.60 $10,232.13 \n55 \n \n(continued) 139 \n \n Statistical Section \n \nAverage Monthly Benefit Payment for New Retirees - LRS \n \n8 - 14 \n \nYears of Credited Service \n \n15 - 19 \n \n20 - 24 \n \n25 - 29 30 \u0026 over \n \nTotal \n \n2008 \nAverage Monthly Benefit Number of Retirees \n2009 \nAverage Monthly Benefit Number of Retirees \n2010 \nAverage Monthly Benefit Number of Retirees \n2011 \nAverage Monthly Benefit Number of Retirees \n2012 \nAverage Monthly Benefit Number of Retirees \n2013 \nAverage Monthly Benefit Number of Retirees \n2014 \nAverage Monthly Benefit Number of Retirees \n2015 \nAverage Monthly Benefit Number of Retirees \n2016 \nAverage Monthly Benefit Number of Retirees \n2017 \nAverage Monthly Benefit Number of Retirees \n \n$324.74 $604.63 $698.86 \n \n0 \n \n0 $542.74 \n \n4 \n \n4 \n \n2 \n \n0 \n \n0 \n \n10 \n \n$425.39 2 \n \n$650.99 1 \n \n0 $921.00 $1,203.00 $800.10 \n \n0 \n \n2 \n \n3 \n \n8 \n \n$372.93 $558.00 \n \n0 \n \n0 \n \n0 $465.47 \n \n8 \n \n1 \n \n0 \n \n0 \n \n0 \n \n9 \n \n$341.79 12 \n \n$589.12 1 \n \n0 $843.26 $934.73 $456.99 \n \n0 \n \n2 \n \n1 \n \n16 \n \n$363.66 $549.08 \n \n0 \n \n0 $1,286.43 $548.46 \n \n4 \n \n2 \n \n0 \n \n0 \n \n1 \n \n7 \n \n$308.15 14 \n \n$568.93 4 \n \n$670.94 2 \n \n0 $1,166.93 \n \n0 \n \n3 \n \n$497.03 23 \n \n$289.25 $480.21 \n \n0 \n \n0 \n \n0 $336.99 \n \n3 \n \n1 \n \n0 \n \n0 \n \n0 \n \n4 \n \n$341.03 5 \n \n$382.95 1 \n \n$642.84 3 \n \n0 $1,228.50 \n \n0 \n \n2 \n \n$588.51 11 \n \n$322.51 $524.09 \n \n0 \n \n0 \n \n0 $380.11 \n \n5 \n \n2 \n \n0 \n \n0 \n \n0 \n \n7 \n \n$362.52 $557.02 $740.79 \n \n0 \n \n0 $484.34 \n \n6 \n \n3 \n \n2 \n \n0 \n \n0 \n \n11 \n \nNote: LRS is not a final average pay plan. \n \n(continued) 140 \n \n Statistical Section \n \nAverage Monthly Benefit Payment for New Retirees - GMPF \n \nYears of Credited Service \n \n20-25 \n \n26 - 30 \n \nOver 30 \n \nTotal \n \n2008 \nAverage Monthly Benefit Number of Retirees \n2009 \nAverage Monthly Benefit Number of Retirees \n2010 \nAverage Monthly Benefit Number of Retirees \n2011 \nAverage Monthly Benefit Number of Retirees \n2012 \nAverage Monthly Benefit Number of Retirees \n2013 \nAverage Monthly Benefit Number of Retirees \n2014 \nAverage Monthly Benefit Number of Retirees \n2015 \nAverage Monthly Benefit Number of Retirees \n2016 \nAverage Monthly Benefit Number of Retirees \n2017 \nAverage Monthly Benefit Number of Retirees \n \n$55.63 8 \n \n$83.61 18 \n \n$100.00 47 \n \n$91.10 73 \n \n$59.50 20 \n \n$87.63 19 \n \n$100.00 53 \n \n$88.64 92 \n \n$63.82 17 \n \n$85.83 18 \n \n$100.00 56 \n \n$90.44 91 \n \n$63.16 19 \n \n$91.47 17 \n \n$100.00 52 \n \n$90.40 88 \n \n$61.54 13 \n \n$90.33 15 \n \n$100.00 63 \n \n$92.83 90 \n \n$59.44 18 \n \n$89.55 22 \n \n$100.00 42 \n \n$88.29 82 \n \n$61.11 9 \n \n$90.53 19 \n \n$100.00 31 \n \n$91.02 59 \n \n$62.07 15 \n \n$94.10 16 \n \n$100.00 20 \n \n$86.99 51 \n \n$66.30 27 \n \n$89.29 14 \n \n$100.00 30 \n \n$85.07 71 \n \n$65.00 11 \n \n$89.05 21 \n \n$100.00 37 \n \n$91.09 69 \n \nNote: GMPF is not a final average pay plan. \n \n141 \n \n Retired Members by Retirement Type \nERS June 30, 2017 \n \nStatistical Section \n \nAmount of Monthly Benefit \n$ 1 - 500 501 - 1,000 1,001 - 1,500 1,501 - 2,000 2,001 - 2,500 2,501 - 3,000 3,001 - 3,500 3,501 - 4,000 4,001 - 4,500 4,501 - 5,000 5,001 - 5,500 5,501 - 6,000 over 6,000 \nTotals \n \nRetirement Type \n \nService Disability Survivor \n \n3,726 \n \n259 \n \n339 \n \n7,890 \n \n1,048 \n \n327 \n \n6,442 \n \n1,163 \n \n239 \n \n5,011 \n \n939 \n \n166 \n \n3,944 \n \n790 \n \n107 \n \n3,214 \n \n585 \n \n72 \n \n2,563 \n \n420 \n \n52 \n \n2,145 \n \n319 \n \n43 \n \n1,704 \n \n228 \n \n24 \n \n1,518 \n \n173 \n \n12 \n \n1,189 \n \n121 \n \n8 \n \n811 \n \n67 \n \n8 \n \n1,866 \n \n89 \n \n11 \n \n42,023 \n \n6,201 1,408 \n \nPSERS June 30, 2017 \n \nAmount of Monthly Benefit \n$ 1 - 100 101 - 200 201 - 300 301 - 400 401 - 500 over 500 \nTotals \n \nRetirement Type Service Disability Survivor \n \n97 \n \n8 \n \n235 \n \n6,146 \n \n39 \n \n145 \n \n4,795 \n \n314 \n \n49 \n \n2,667 \n \n399 \n \n6 \n \n1,588 \n \n291 \n \n1 \n \n1,155 \n \n169 \n \n-- \n \n16,448 \n \n1,220 \n \n436 \n \n(continued) 142 \n \n Retired Members by Retirement Type \nGJRS June 30, 2017 \nAmount of Monthly Benefit \n$ 1 - 1,000 1,001 - 2,000 2,001 - 3,000 3,001 - 4,000 4,001 - 5,000 5,001 - 6,000 6,001 - 7,000 7,001 - 8,000 over 8,000 \nTotals \n \nStatistical Section \n \nRetirement Type Service Disability Survivor \n \n14 \n \n-- \n \n1 \n \n19 \n \n-- \n \n6 \n \n31 \n \n-- \n \n1 \n \n38 \n \n-- \n \n1 \n \n25 \n \n2 \n \n1 \n \n17 \n \n-- \n \n-- \n \n32 \n \n-- \n \n-- \n \n80 \n \n-- \n \n-- \n \n78 \n \n-- \n \n-- \n \n334 \n \n2 \n \n10 \n \nLRS June 30, 2017 \n \nAmount of Monthly Benefit \n$ 1 - 250 251 - 500 501 - 750 751 - 1,000 over 1,000 \nTotals \n \nRetirement Type \n \nService Disability Survivor \n \n21 \n \n-- \n \n-- \n \n114 \n \n-- \n \n5 \n \n71 \n \n-- \n \n-- \n \n32 \n \n-- \n \n-- \n \n20 \n \n-- \n \n-- \n \n258 \n \n0 \n \n5 \n \nGMPF June 30, 2017 \n \nAmount of Monthly Benefit \n \n$ \n \n1 - 49 \n \n50 - 100 \n \nover 100 \n \nTotals \n \nRetirement Type Service -- 985 -- \n985 \n \n143 \n \n Retired Members by Optional Form of Benefit \nERS June 30, 2017 \n \nStatistical Section \n \nAmount of Monthly Benefit \n$ 1 - 500 501 - 1,000 1,001 - 1,500 1,501 - 2,000 2,001 - 2,500 2,501 - 3,000 3,001 - 3,500 3,501 - 4,000 4,001 - 4,500 4,501 - 5,000 over 5,000 \nTotals \n \nMaximum Plan \n1,319 4,091 3,301 2,557 1,995 1,551 1,083 \n841 601 489 926 \n \nOption 1 \n402 1,176 1,051 \n953 692 538 389 270 197 117 274 \n \nForm of Benefit Option 2 Option 3 \n \n1,239 \n \n406 \n \n1,828 \n \n637 \n \n1,338 \n \n641 \n \n870 \n \n561 \n \n603 \n \n461 \n \n446 \n \n334 \n \n310 \n \n309 \n \n259 \n \n214 \n \n167 \n \n181 \n \n135 \n \n179 \n \n298 \n \n448 \n \nOption 4 \n747 963 876 621 566 626 636 679 646 657 1,971 \n \nOption 5A Option 5B \n \n150 \n \n61 \n \n363 \n \n207 \n \n402 \n \n235 \n \n281 \n \n273 \n \n276 \n \n248 \n \n162 \n \n214 \n \n141 \n \n167 \n \n103 \n \n141 \n \n52 \n \n112 \n \n47 \n \n79 \n \n88 \n \n165 \n \n18,754 \n \n6,059 \n \n7,493 \n \n4,371 \n \n8,988 \n \n2,065 \n \n1,902 \n \nMaximum Plan Option 1 \nOption 2 Option 3 Option 4 \nOption 5A Option 5B \n \nSingle life annuity \nReduced single life annuity with a guarantee of the remainder of the annuity savings fund account (contributions and interest), if any, to be paid upon the retiree's death 100% joint and survivor annuity with a popup option upon divorce \n50% joint and survivor annuity with a popup option upon divorce \nVarious options, including a specified monthly amount payable to a beneficiary upon the retiree's death, several period certain annuities of varying length, and a five-year accelerated benefit 100% joint and survivor annuity with a popup option upon divorce or the death of the beneficiary before the retiree \n50% joint and survivor annuity with a popup option upon divorce or the death of the beneficiary before the retiree \n \n144 \n \n(continued) \n \n Retired Members by Optional Form of Benefit \nPSERS June 30, 2017 \n \nStatistical Section \n \nAmount of Monthly Benefit \n$ 1 - 100 101 - 200 201 - 300 301 - 400 401 - 500 over 500 \nTotals \n \nForm of Benefit Maximum Plan Option AA Option AB Option AC Option AD Option B \n \n1 \n \n50 \n \n253 \n \n6 \n \n4,504 \n \n1,043 \n \n345 \n \n9 \n \n4,236 \n \n506 \n \n183 \n \n5 \n \n2,653 \n \n267 \n \n59 \n \n8 \n \n1,698 \n \n103 \n \n42 \n \n4 \n \n1,242 \n \n42 \n \n18 \n \n5 \n \n12 \n \n18 \n \n93 \n \n335 \n \n45 \n \n183 \n \n14 \n \n71 \n \n2 \n \n31 \n \n-- \n \n17 \n \n14,334 \n \n2,011 \n \n900 \n \n37 \n \n166 \n \n655 \n \nMaximum Plan Option AA Option AB Option AC Option AD \nOption B \n \nSingle life annuity \n100% joint and survivor annuity \n50% joint and survivor annuity \nJoint and survivor annuity with a specified monthly amount payable to a beneficiary \nJoint and survivor annuity with the amount payable to a beneficiary limited by the age difference between the retiree and the beneficiary Annuity for a guaranteed period of time (5, 10, 15, or 20 years). If retiree outlives guarantee period, there is no benefit due after retiree's death \n \n145 \n \n(continued) \n \n Retired Members by Optional Form of Benefit \nGJRS June 30, 2017 \n \nStatistical Section \n \nAmount of Monthly Benefit \n$ 1 - 1,000 1,001 - 2,000 2,001 - 3,000 3,001 - 4,000 4,001 - 5,000 5,001 - 6,000 6,001 - 7,000 7,001 - 8,000 over 8,000 \n \nForm of Benefit Maximum Plan Spousal Coverage \n \n-- \n \n15 \n \n1 \n \n24 \n \n4 \n \n28 \n \n2 \n \n37 \n \n5 \n \n23 \n \n8 \n \n9 \n \n6 \n \n26 \n \n19 \n \n61 \n \n14 \n \n64 \n \nTotals \n \n59 \n \n287 \n \nMaximum Plan Single life annuity Spousal Coverage Indicates the member elected at enrollment that a survivor annuity be paid to a surviving spouse \n \nLRS June 30, 2017 \n \nAmount of Monthly Benefit \n \n$ 1 - 250 251 - 500 501 - 750 751 - 1,000 over 1,000 \nTotals \n \nMaximum Plan Option B1 Option B2 \n \nSingle life annuity 100% joint and survivor annuity 50% joint and survivor annuity \n \nForm of Benefit \n \nMaximum Plan Option B1 \n \n-- \n \n17 \n \n43 \n \n68 \n \n37 \n \n22 \n \n9 \n \n19 \n \n6 \n \n11 \n \nOption B2 \n4 8 12 4 3 \n \n95 \n \n137 \n \n31 \n \nGMPF and SEAD-OPEB June 30, 2017 \nThe GMPF Plan provides a benefit only in one form, a life annuity. All 985 current retirees, therefore, have this same form of benefit. The SEAD-OPEB plan provides only a lump sum death benefit to a member's beneficiary(ies). \n \n146 \n \n Top Participatory Employers FY10 \nERS \nDepartment of Corrections Department of Behavioral Health and Developmental Disability Department of Transportation Department of Labor Department of Juvenile Justice Department of Natural Resources Department of Human Resources Department of Driver Services Department of Community Health Department of Revenue \nTotal Top Employers Total ERS Member Count \nPSERS \nGwinnett County Schools Cobb County Schools Dekalb County Schools Clayton County Schools Muscogee County Schools Henry County Schools Cherokee County Schools Forsyth County Schools Richmond County Schools Paulding County Schools \nTotal Top Employers Total PSERS Member Count \nGJRS \nCouncil of Superior Court Judges Council of State Court Judges Prosecuting Attorney's Council Council of Juvenile Judges \nTotal Top Employers Total GJRS Member Count \nData from 9 years prior is unavailable. FY10 data is the first available. \nData for SEAD-OPEB is not available. \n \nStatistical Section \n \nMember Count % of total plan \n \n12,527 6,869 4,846 3,867 3,679 2,079 1,942 1,674 1,351 1,154 \n39,988 68,567 \n \n18.2% 10.0% \n7.1% 5.7% 5.4% 3.0% 2.8% 2.4% 2.0% 1.7% \n58.3% \n \n3,931 2,471 2,234 1,382 \n970 909 902 894 877 715 \n15,285 39,962 \n \n9.8% 6.2% 5.6% 3.4% 2.4% 2.3% 2.3% 2.2% 2.2% 1.8% \n38.2% \n \n203 \n \n41.0% \n \n108 \n \n21.8% \n \n96 \n \n19.4% \n \n71 \n \n14.4% \n \n478 \n \n96.6% \n \n495 \n \n147 \n \n Top Participatory Employers FY17 \nERS \nDepartment of Corrections Department of Behavioral Health and Developmental Disabilities Department of Transportation Department of Juvenile Justice Department of Human Services Department of Community Supervision Department of Public Safety Department of Natural Resources Department of Labor Department of Community Health \nTotal Top Employers Total ERS Member Count \nPSERS \nGwinnett County Schools Cobb County Schools Dekalb County Schools Clayton County Schools Chatham County Schools Forsyth County Schools Richmond County Schools Houston County Schools Muscogee County Schools Cherokee County Schools \nTotal Top Employers Total PSERS Member Count \nGJRS \nCouncil of Superior Courts Council of State Court Judges Prosecuting Attorneys' Council Council of Juvenile Courts \nTotal Top Employers Total GJRS Member Count \nSEAD-OPEB \nDepartment of Corrections Department of Transportation Department of Human Services Department of Behavioral Health and Developmental Disabilities Department of Juvenile Justice Department of Natural Resources Department of Community Supervision Department of Public Safety Department of Labor Department of Revenue \nTotal Top Employers Total Active Member Count \n \nStatistical Section \n \nMember Count % of total plan \n \n9,709 4,308 3,818 3,377 3,247 2,104 1,769 1,711 1,311 \n989 \n32,343 60,983 \n3,477 2,277 2,197 1,317 \n958 893 873 788 741 698 \n14,219 35,510 \n212 125 116 \n71 \n524 527 \n4,241 2,525 1,775 1,545 1,215 1,054 1,001 \n956 821 473 \n15,606 28,873 \n \n15.92% 7.06% 6.26% 5.54% 5.32% 3.45% 2.90% 2.81% 2.15% 1.62% \n53.04% \n9.79% 6.41% 6.19% 3.71% 2.70% 2.51% 2.46% 2.22% 2.09% 1.97% \n40.04% \n40.46% 23.85% 22.14% 13.55% \n99.43% \n14.69% 8.75% 6.15% 5.35% 4.21% 3.65% 3.47% 3.31% 2.84% 1.64% \n54.05% \n \n148 \n \n Schedule of Revenue and Expenses State Employees' Assurance Department Active Members Fund \n \nYear ended June 30, 2017 (In thousands) \n \nOperating revenue: Insurance premiums Total operating revenue \nOperating expenses: Death benefits Administrative expenes Total operating expenses Total operating loss \nNonoperating revenues (expenses): Allocation of investment income from pooled investment fund Investment expenses Total nonoperating revenues Change in net position \nTotal net position: Beginning of year End of year \n \n2017 \n \n$ \n \n599 \n \n599 \n \n4,019 64 \n4,083 (3,484) \n \n29,847 (62) \n29,785 26,301 \n \n240,985 $ 267,286 \n \nStatistical Section \n2016 611 611 \n3,345 67 \n3,412 (2,801) \n3,169 (60) \n3,109 308 \n240,677 240,985 \n \nIn fiscal year 2017, the System adopted provisions of GASB Statement No. 74 and revised its accounting methodology with regard to the presentation of SEAD-Active, and began reporting it as a proprietary fund. In previous years it was reported as a fiduciary fund. Additional years will be displayed as they become available. \n \n149 \n \n Schedule of Membership State Employees' Assurance Department Active Members Fund \n \nStatistical Section \n \nFiscal Year \n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 \n \nCovered Lives \n75,859 69,745 62,305 55,412 49,212 43,127 38,711 35,142 31,869 28,873 \n \n150 \n \n 151 \n \nSystem ERS \nPSERS GJRS LRS GDCP SCJRF DARF SEAD GMPF \n \nNet Position $13.1 billion \n$868 million $441 million $33 million $111.3 million \n \nEmployer and Nonemployer Contributions Old Plan: 20.06% New Plan: 24.81% GSEPS 21.81% \n($625 mil) \n$26.3 million \n6.98% ($6.7 million) \n0% (None) \nNone \n \nEmployee Contributions \nOld Plan: 6% (with 4.75% pickup) New Plan: 1.25% \nGSEPS: 1.25% ($36 mil) \n \nActive Members \nOld Plan: (0.11%) 66 New Plan: (46.99%) 28,656 GSEPS: (52.90%) 32,261 \nTotal: 60,983 \n \n$36 yr prior July 1, 2012 $90 yr after July 1, 2012 ($2.1 million) \n \n35,510 \n \n7.5% \n \n+2.5% Spousal \n \n527 \n \n($4.9 million) \n \n8.5% \n \n(with 4.75% pickup) \n \n222 \n \n($327 thousand) \n \n7.5% ($14.9 million) \n \n14,355 \n \n$6 thousand \n \n$1.1 million \n \nNone \n \nNone \n \nInactives 57,329 \n48,189 60 164 \n103,154 None \n \n$2 thousand $1.4 billion $20.7 million \n \n$51 thousand $1 thousand \n$2 million \n \nNone \nNew Plan: 0.25% Old Plan: 0.50% \n($4.4 million) \nNone \n \nNone \nNo. Insured: 28,873 \n13,794 \n \nNone 1,054 None \n \nRetirees Total: 49,632 \nService: 37,882 Beneficiary: 5,687 Disability: 5,423 \nInv. Sep.: 487 Law. Enf.: 153 \n18,104 \n \nAnnual Payment \n \nAverage Monthly Benefit \n \n$1.4 billion \n \n$2,272 \n \n$59 million \n \n$276 \n \n346 \n \n$22 million \n \n$5,712 \n \n263 \n \n$1.8 million \n \n$550 \n \n0 \n \nN/A \n \nN/A \n \n16 \n \n$1.1 million \n \n$5,510 \n \n5 \n \n$51 thousand \n \n$855 \n \nNo. Insured: 41,717 \n \nNo. of Claims: 1,129 Amt. Pd: $40.1 mil \n \nAverage Claim: $35,303 \n \n985 \n \n$1.0 million \n \n$91 \n \nStatistical Data at June 30, 2017 \n \nStatistical Section \n \n "},{"id":"dlg_ggpd_y-ga-be400-b-pa1-b2016-belec-p-btext","title":"Comprehensive annual financial report [June 30, 2016]","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Employees' Retirement System"],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Employees' Retirement System"],"dc_date":["2016-06-30"],"dcterms_description":["Began with: 2010.","Report year ends June 30.","Description based on: 2010; title from PDF title page (Georgia Government Publications database, viewed September 21, 2016).","Latest issue consulted: 2014 (viewed September 21, 2016)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. Employees' Retirement System"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Georgia"],"dcterms_title":["Comprehensive annual financial report [June 30, 2016]","Annual report"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-be400-b-pa1-b2016-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-be400-b-pa1-b2016-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["publications (documents)"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"2016 \n \nEmployees' Retirement System of Georgia \nComprehensive Annual Financial Report \n \nERS \n \nGMPF \n \nGJRS \n \nERSGA \n \nLRS \n \nPSR \n \nGDCP \n \nPSERS \n \nFiscal Year Ended June 30, 2016 \nA component unit of the State of Georgia \n \nE RSGA \n \nServing those who serve Georgia \n \nEmployees' Retirement System of Georgia \n \n Introductory \nSection \n \nEmployees' Retirement System of Georgia \nComprehensive Annual Financial Report \n \nERS \n \nGMPF \n \nGJRS \n \nERSGA \n \nLRS \n \nPSR \n \nGDCP \n \nPSERS \n \nFiscal Year Ended June 30, 2016 \nPrepared by the Financial Services Division \nJames A. Potvin Executive Director \nA component unit of the State of Georgia \n \nE RSGA \n \nServing those who serve Georgia \n \nEmployees' Retirement System of Georgia \n \n Table of Contents \n \nIntroductory Section \n \nBoards of Trustees \n \n4 \n \nLetter of Transmittal \n \n5 \n \nCertificate of Achievement for Excellence in Financial \n \n8 \n \nReporting \n \nPPCC Recognition Award for Funding \n \n9 \n \nAdministrative Staff and Organization \n \n10 \n \nOrganizational Chart \n \n11 \n \nFinancial Section \n \nIndependent Auditors' Report \n \n13 \n \nManagement's Discussion and Analysis (Unaudited) \n \n15 \n \nBasic Financial Statements: \n \nCombining Statement of Fiduciary Net Position \n \n22 \n \nas of June 30, 2016 \n \nDefined Benefit Plans-Combining Statement of \n \n23 \n \nFiduciary Net Position as of June 30, 2016 \n \nCombining Statement of Changes in Fiduciary Net \n \n24 \n \nPosition for the Year Ended June 30, 2016 \n \nDefined Benefit Plans-Combining Statement of \n \n25 \n \nChanges in Fiduciary Net Position for the \n \nYear Ended June 30, 2016 \n \nNotes to Financial Statements \n \n26 \n \nRequired Supplementary Information (Unaudited): \n \nDefined Benefit Pension Plans: \n \nSchedules of Employers' and Nonemployers' \n \n55 \n \nContributions \n \nSchedules of Employers' and Nonemployers' Net 57 \n \nPension Liability and Related Ratios \n \nSchedules of Changes in Employers' and \n \n58 \n \nNonemployers' Net Pension Liability \n \nSchedule of Investment Returns \n \n63 \n \nDefined Benefit OPEB Plans: \n \nSchedules of Funding Progress \n \n64 \n \nSchedules of Employer Contributions \n \n65 \n \nNotes to Required Supplementary Information (Unaudited) 66 \n \nAdditional Information: \n \nSchedule of Administrative Expenses - Contributions 69 \n \nand Expenses \n \nSchedule of Investment Expenses \n \n70 \n \nInvestment Section \n \nInvestment Overview \n \n72 \n \nPooled Investment Fund/Rates of Return \n \n73 \n \nAsset Allocation at Fair Value/Investment Summary \n \n74 \n \nSchedule of Fees and Commissions \n \n75 \n \nTwenty Largest Equity Holdings \n \n76 \n \nFixed Income Holdings \n \n77 \n \nActuarial Section \n \nActuary's Certification Letters \n \n79 \n \nSummary of Plan Provisions \n \n91 \n \nSummary of Actuarial Assumptions \n \n92 \n \nActive Members \n \n103 \n \nMember and Employer Contribution Rates \n \n105 \n \nDefined Benefit Pension Plans \n \n108 \n \nSchedules of Funding Progress \n \nSchedule of Retirees Added to and Removed from Rolls 110 \n \nAnalysis of Change in Unfunded Accrued Liability (UAL) 112 \n \nSolvency Test Results \n \n115 \n \nStatistical Section \n \nIntroduction \n \n119 \n \nAdditions by Source - Contribution/Investment Income \n \n120 \n \nDeductions by Type \n \n123 \n \nChanges in Fiduciary Net Position \n \n127 \n \nNumber of Retirees \n \n129 \n \nAverage Monthly Payments to Retirees \n \n130 \n \nAnnual Benefit \n \n131 \n \nWithdrawal Statistics \n \n132 \n \nAverage Monthly Benefit Payment for New Retirees \n \n133 \n \nRetired Members by Retirement Type \n \n138 \n \nRetired Members by Optional Form of Benefit \n \n140 \n \nTop Participatory Employers \n \n143 \n \nStatistical Data at June 30, 2016 \n \n145 \n \n Introductory \nFinSeactnioncial \nSection \n \nIntroductory Section \n \nERS \n \nGMPF \n \nGJRS \n \nERSGA \n \nLRS \n \nPSR \n \nGDCP \n \nPSERS \n \nE RSGA \n \nServing those who serve Georgia \n \nEmployees' Retirement System of Georgia \n \n Boards of Trustees \n \nIntroductory \nSection \nEmployees' Retirement System, Legislative Retirement System, Georgia Defined Contribution Plan, and Georgia Military Pension Fund \n \nLonice Barrett Chair \n \nSid Johnson Vice-Chair \n \nHarold Reheis \n \nFrank F. Thach, Jr. \n \nSteven N. McCoy \n \nGreg S. Griffin \n \nEli P. Niepoky \n \nPublic School Employees Retirement System* State Employees' Assurance Department** \n \nMichael Lowe \n \nRichard Taylor \n \nMark Butler \n \nGeorgia Judicial Retirement System* \n \nH. Phillip Bell \n \nEllen S. Golden \n \nRon Mullins \n \nE. Trenton Brown III \n \n*The PSERS and GJRS boards are comprised of the members of the ERS board and additional members shown under each plan. \n**SEAD -- ERS Board Members Greg S. Griffin, Steven N. McCoy, Lonice Barrett, and Sid Johnson serve in addition to the two members shown above. 4 \n \n Letter of Transmittal \nDecember 21, 2016 \n \nIntroductory \nSection \n \nE RSGA \n \nServing those who serve Georgia \n \nEmployees' Retirement System of Georgia \n \nTwo Northside 75 Atlanta, GA 30318 \n \nI am pleased to present the Comprehensive Annual Financial Report for the fiscal year ended June 30, 2016 of the retirement systems and programs administered by the Employees' Retirement System of Georgia (the System). The management of the System is responsible for the accuracy, completeness and fairness of the presentation, including all disclosures. It is to the best of our knowledge and belief that the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the System. \nProfile of the System \nThe System was established in 1949 by an Act of the Georgia General Assembly to provide benefits for all State employees. Plans administered by the System include the Employees' Retirement System (ERS), the Legislative Retirement System (LRS) established in 1979, the Public School Employees Retirement System (PSERS) established in 1969, the Georgia Defined Contribution Plan (GDCP) established in 1992, the Georgia Judicial Retirement System (GJRS) established in 1998, and the Georgia Military Pension Fund (GMPF) established in 2002. In addition, the System is responsible for administering a Group Term Life Insurance Plan (SEAD), the 457 Plan established in 1974 and the 401(k) Plan established in 1994. A summary of each plan can be found on pages 26 through 35 of this report. The investments of all plans are pooled together into one fund except for the three defined contribution (DC) plans, which are maintained individually. \nThe ERS, LRS, GDCP, GMPF, 401(k) and 457 plans are governed by a 7-member Board of Trustees (Board) made up of 3 ex-officio members, 1 governor-appointed member, and 3 Board-appointed members. PSERS has the same Board as ERS with 2 additional governor-appointed members. GJRS has the same Board as ERS with 3 additional governorappointed members. \nAs of June 30, 2016, the System's defined benefit (DB) plans served a total of 109,272 active members and 67,563 retirees/ beneficiaries from 702 employers around the state. There \n \nwere 55,542 participants in the 401(k) plan with a total investment balance of $680 million. The 457 plan had 13,029 participants with a total investment balance of $558 million. There are 486 participating employers from around the state in the 457 and 401(k) plans. \nLegislation \nIn the 2016 session, the following Acts were passed by the General Assembly and signed by the Governor, which impact the System: \nAct 400 was a companion bill to HB 310, which created a new Department of Community Supervision. Certain employees of the new Department will remain eligible for enhanced disability benefits once transferred. Certain employees of the new Department currently not eligible for enhanced disability benefits became eligible upon passage. \nAct 426 changes the vesting requirement for judges moving from part-time to full-time service and allows for an actuarial calculation of benefits upon transfer to full-time service and subsequent retirement. \nAct 432 allows certain law enforcement members to purchase up to five years of certain local government authority service by paying full actuarial cost. \nAct 380 adds state chartered banks or trust companies to the allowable list of commingled investments for all retirement systems under Title 47. \nSummary of Financial Information \nThe management of the System is charged with the responsibility of maintaining a sound system of internal accounting controls. The objectives of such a system are to provide management with reasonable assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorizations, and that they are recorded properly to permit the preparation of financial statements in \n \n5 \n \n(continued) \n \n Introductory \nSection \n \nLetter of Transmittal \n \naccordance with generally accepted accounting principles. The concept of reasonable assurance recognizes that first, the cost of a control should not exceed the benefits likely to be derived, and second, the evaluation of the cost and benefits requires estimates and judgments by management. \nEven 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. \n \nExcellence in Financial Reporting \nFor the sixth consecutive year, the Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate ofAchievement for Excellence in Financial Reporting to the Employees' Retirement System of Georgia for its comprehensive annual financial report for the fiscal year ended June 30, 2015. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. \n \nPlease refer to the Management's Discussion and Analysis starting on page 15 of this report for an overview of the financial status of the System, including a summary of the System's Fiduciary Net Position, Changes in Fiduciary Net Position, and Asset Allocations. \n \nA 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. \n \nFor fiscal year 2016, the pooled investment fund generated a return of 1.4%. The fund continues to invest in a mix of highquality bonds and stocks which allows the System to participate in rising markets while controlling the downside risks. This has proven to be a successful strategy for other markets and for the System. For further information on investments of the pooled fund, please refer to the Investment Section on pages 72 through 77 of this report. \nThe objective of the System's pension trust funds is to meet long-term benefit promises through contributions that remain approximately level as a percent of member payroll over time while maintaining an actuarially sound system. Historical information relating to the progress in meeting this objective is presented on pages 64, 108, and 109. The latest actuarial valuations as of June 30, 2015 showed the funded ratio of all five defined benefit plans increasing. The following table shows the change in funding percentage for each of the pension systems: \n \nERS PSERS LRS GJRS GMPF \n \nFY2014 72.8% 82.8% \n122.6% 108.8% \n44.8% \n \nFY2015 74.1% 83.2% \n123.1% 113.2% 46.7% \n \nFurther information regarding the funding condition of the pension plans can be found in the Actuarial Section of this report, beginning on page 79. \n \nInitiatives \nBenefit Statements The Georgia State Employees' Pension and Savings (GSEPS) tier of ERS utilizes two benefit plans to deliver a member's retirement benefits. The ERS pension plan is administered in-house by ERS staff, while the Peach State Reserves (PSR) 401(k) and 457 plans are outsourced. Communications pertaining to the two systems have in the past been conducted separately by the two administration platforms, which has been a complicating factor for our membership. \nIn February 2016, ERS took two major steps towards integration of the two plans' communication strategies. First, we delivered a combined benefit statement to our active membership, which included information on both the pension plan and the PSR plans, as well as a basic Social Security estimate. For the first time, members saw a projection of what their total retirement picture might look like at retirement, and they received basic advice on how to improve their projections going forward. Second, we began sending pension plan data to our PSR outsourced administration provider so that they could load it to their web site and allow members to see combined data when using website tools. \nContinuing an initiative begun several years ago, we also created and delivered bi-annual benefit statements to the active members of two of our smaller systems  LRS and GJRS. \n \n6 \n \n(continued) \n \n Introductory \nSection \n \nLetter of Transmittal \nPre-Retirement Workshops For many years ERS has hosted a twice-monthly workshop for members who are within six months of their anticipated retirement dates. The topics have varied somewhat, but have primarily focused on information pertaining to the ERS pension plan and the PSR plans, as well as the application process. \nRecognizing that our members' retirement concerns go beyond the plans that the System administers, we significantly enhanced the standing agenda for the workshops. As a result of partnerships with (among others) the Georgia Department of Community Health, the Georgia Department of Administrative Services, and the Georgia Technology Authority, the new agenda provides members with information about the State Health Benefit Plan, the State's Flexible Benefits offerings, Social Security, and the MORE retiree discount program, in addition to the System's plans. \nInformation Technology The most intensive project completed by the IT Division in fiscal year 2016 was the installation of upgraded core network hardware. Completed with no interruption in service to the rest of the staff or our membership, the upgraded network infrastructure incorporates additional security, redundancy, speed / network capacity, and reliability. Other cyber-security related initiatives included system penetration testing and social engineering, as well as staff security awareness training. \n \nand the new factors were applied for retirements effective July 1, 2016 and later. \nAcknowledgements This report reflects the combined effort of our staff under the Board's leadership. Copies of this report, along with other valuable plan information, can be downloaded from the System's website. \nI would like to express my sincere thanks to the Boards of Trustees for their leadership and support. Many thanks are also extended to the offices of the Governor, Lieutenant Governor, members of the House and Senate Retirement Committees and their staff, members of the House and Senate, and the department officials whose support and assistance have helped ERS accomplish its mission over the years. \nRespectfully submitted, \nJames A. Potvin, Executive Director Employees' Retirement System of Georgia \n \nAdministration Projects One of the most common inquiries received by our Member Services Division is to provide \"benefit verification\" letters, which retirees sometimes require in order to verify their retirement income. Rather than having to wait several days for our response, retirees can now go to the self-service section of our website and produce these letters themselves, on-demand and within a matter of minutes. This has saved the System's staff considerable time in processing these requests and greatly sped up the response time experienced by our retirees. \n \nEvery five years, the plans are required to undergo an \"experience study\". These studies compare the actuarial assumptions, including mortality, retirement rates, etc., to the actual experience of the plan over the preceding five-year period. The Board then reviews the advice of our actuaries and makes changes to the assumptions for future years. Among the most significant impacts are changes to the factors we use in our pension calculation system to determine retiree estimated and final benefit amounts. Our most recent experience studies were completed in December 2015, \n \n7 \n \n Introductory \nSection \n8 \n \n Introductory \nSection \nP P CC \nPublic Pension Coordinating Council Recognition Award for Funding \n2016 \nPresented to \nEmployees' Retirement System of Georgia \nIn recognition of meeting professional standards for plan funding as \nset forth in the Public Pension Standards. \nPresented by the Public Pension Coordinating Council, a confederation of National Association of State Retirement Administrators (NASRA) \nNational Conference on Public Employee Retirement Systems (NCPERS) National Council on Teacher Retirement (NCTR) \nAlan H. Winkle Program Administrator \n9 \n \n Introductory \nSection \nAdministrative Staff and Organization \n \nJames A. Potvin Executive Director \n \nAngie Surface Deputy Director \n \nCharles W. Cary, Jr. CIO - Investment Services \n \nLaura L. Lanier Controller \n \nChris Hackett Director \nInformation Technology \n \nNicole Paisant Director \nHuman Resources \n \nSusan Anderson Chief Operating \nOfficer \n \nCarolyn Kaplan Director \nFinancial Management Quality Assurance \n \nConsulting Services \nCavanaugh Macdonald Consulting, LLC - Actuary KPMG LLP - Auditor JPMorgan Chase Bank, N. A. - Defined Contribution \nCustodian Aon Hewitt - Defined Contribution Consultant and \nAdministrator \nInvestment Advisors* \nAlbritton Capital Management Baillie Gifford Overseas Limited Barrow, Hanley, Mewhinney \u0026 Strauss Cooke \u0026 Bieler Fisher Investments Mondrian Investment Partners Limited Sands Capital Management \n \nMedical Advisors \nHarold E. Sours, M.D., Atlanta, GA G. Lee Cross, M.D., Atlanta, GA Douglas Smith, M.D., Smyrna, GA William H. Biggers, M.D., Atlanta, GA Pedro F. Garcia, M.D., Atlanta, GA H. Rudolph Warren, M.D., Dunwoody, GA Quinton Pirkle, M.D., Atlanta, GA Marvin Bittinger, M.D., Gainesville, GA Joseph S. Wilkes, M.D., Sandy Springs, GA \n \n*See page 75 in the Investment Section for a summary of fees paid to Investment Advisors. 10 \n \n Introductory \nSection \nOrganizational Chart \n \nBoard of Trustees \n \nExecutive Director \n \nExecutive Support \n \nDeputy Director \n \nInvestment Services Division \n \nFinancial Services Division \n \nInformation Technology \nDivision \n \nChief Operating \nOfficer \n \nFinancial Management \nDivision \n \nQuality Assurance \nDivision \n \nPeach State Reserves \n \nOffice \nAdministration \n \nMember Services Division \n \n11 \n \n Our Mission \nOur mission is to be the guardian of the State of Georgia's retirement plans and promote a dignified retirement for the members, retirees, and their beneficiaries. Our vision is to demonstrate an unwavering commitment to delivering accurate and timely retirement benefits utilizing a knowledgeable staff and state-of-the-art technology to best serve the retirement needs of current and future members. \nOur Values \nOur Core Values are: Integrity Customer Service Operational Excellence Continuous Improvement and Innovation \n \nE RSGA \n \nServing those who serve Georgia \n \nEmployees' Retirement System of Georgia \n \n Financial \nFinSaecntiocn ial \nSection \n \nFinancial Section \n \nERS \n \nGMPF \n \nGJRS \n \nERSGA \n \nLRS \n \nPSR \n \nGDCP \n \nPSERS \n \nE RSGA \n \nServing those who serve Georgia \n \nEmployees' Retirement System of Georgia \n \n Financial Section \n \nIndependent Auditors' Report \nThe Board of Trustees Employees' Retirement System of Georgia: \n \nKPMG LLP Suite 2000 303 Peachtree Street, NE Atlanta, GA 30308-3210 \n \nReport on the Financial Statements We have audited the accompanying financial statements of the Employees' Retirement System of Georgia (the System), a component unit of the State of Georgia, as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the System's basic financial statements, as listed in the table of contents. \n \naudit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. \n \nManagement's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \nAuditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. \nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An \n \nOpinion In our opinion, the financial statements referred to above present fairly, in all material respects, the fiduciary net position of the System as of June 30, 2016, and the changes in fiduciary net position for the year then ended in accordance with U.S. generally accepted accounting principles. \nEmphasis of Matter As discussed in note 3 to the basic financial statements, the System adopted, in 2016, Governmental Accounting Standards Board Statement No. 72, Fair Value Measurement and Application. Our opinion is not modified with respect to this matter. \nReport on Summarized Comparative Information We have previously audited the System's 2015 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated September 30, 2015. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2015 is consistent, in all material respects, with the audited financial statements from which it has been derived. \nOther Matters Required Supplementary Information U.S. generally accepted accounting principles require that the management's discussion and analysis, schedules of employers' and nonemployers' contributions, schedules of employers' and nonemployers' net pension liability and related ratios, schedules of changes in employers' and nonemployers' net pension liability, \n \n(continued) 13 \n \n Financial Section \n \nschedule of investment returns, schedules of funding progress, and schedules of employer contributions on pages 15-21 and 5565 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \nSupplementary and Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the System's basic financial statements. The schedule of administrative expenses  contributions and expenses and schedule of investment expenses are presented for purposes of additional analysis and are not a required part of the basic financial statements. \nThe schedule of administrative expenses  contributions and expenses and schedule of investment expenses are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling \n \nsuch information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of administrative expenses  contributions and expenses and schedule of investment expenses are fairly stated in all material respects in relation to the basic financial statements as a whole. \nThe Introductory, Investment, Actuarial, and Statistical sections have not been subject to the auditing procedures applied in the audit of the basic financial statements, and, accordingly, we do not express an opinion or provide any assurance on them. \nOther Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated September 30, 2016 on our consideration of the System's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the System's internal control over financial reporting and compliance. \nDecember 21, 2016 \n \nPIC \n \n14 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) June 30, 2016 \nThis section provides a discussion and analysis of the financial performance of the Employees' Retirement System of Georgia (the System) for the year ended June 30, 2016. The discussion and analysis of the System's financial performance is within the context of the accompanying basic financial statements, notes to the financial statements, required supplementary schedules, and additional information following this section. \nThe System is responsible for administering a cost-sharing, multiple-employer defined benefit pension plan for various employer agencies of Georgia, along with six other defined benefit pension plans, three defined benefit OPEB plans and funds, and three defined contribution plans. \nThe defined benefit pension plans include:  Employees' Retirement System (ERS)  Public School Employees Retirement System (PSERS)  Legislative Retirement System (LRS)  Georgia Judicial Retirement System (GJRS)  Georgia Military Pension Fund (GMPF)  Superior Court Judges Retirement Fund (SCJRF)  District Attorneys Retirement Fund (DARF) \nThe defined benefit OPEB plans and funds include:  State Employees' Assurance Department Active Members Trust Fund (SEAD-Active)  State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEAD-OPEB)  Survivors Benefit Fund (SBF) \nThe defined contribution retirement plans include:  Georgia Defined Contribution Plan (GDCP)  State of Georgia Employees' Deferred Compensation Plan (401(k) Plan)  State of Georgia Employees' Deferred Compensation Plan (457 Plan) \nFinancial Highlights \nThe following highlights are discussed in more detail later in this analysis:  The net position of the System decreased by $576.6 million, or 3.4%, from $17.0 billion at June 30, 2015 to $16.4 billion at June 30, 2016. The decrease in net position from 2015 to 2016 was primarily due to net disbursements exceeding investment returns. \n For the year ended June 30, 2016, the total additions to net position were $1.0 billion compared to $1.3 billion for the year ended June 30, 2015. For the year ended June 30, 2016, the additions consisted of employer, nonemployer contributing entities (nonemployer), and member contributions totaling $816.3 million, insurance premiums of $4.5 million, net investment income of $192.8 million, and participant fees of $1.4 million. \n Net investment income of $192.8 million in 2016 (comprised of interest and dividend income, the change in fair value of investments, and other, reduced by investment expenses) represents a $416.9 million decrease, compared to the net investment income of $609.6 million for the year ended June 30, 2015. The net investment income was lower in 2016 compared to 2015 due to lower returns in equity markets. \n(continued) 15 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \n The total deductions were $1.59 billion and $1.64 billion for the years ended June 30, 2016 and 2015, respectively. For the year ended June 30, 2016, the deductions consisted of benefit payments of $1.52 billion, refunds of $19.8 million, death benefits of $37.3 million, and administrative expenses of $16.2 million. \n Benefit payments paid to retirees and beneficiaries had a slight decrease of $41.2 million, or 2.6%, from $1.56 billion in 2015 to $1.52 billion in 2016, resulting primarily from a decrease in participating employers in the 401(k) plan in 2016, coupled with a slight increase in the number of retirees and beneficiaries receiving benefits in 2016. \nOverview of the Financial Statements \nThe basic financial statements include (1) the combining statement of fiduciary net position and changes in fiduciary net position, (2) the defined benefit plans combining statements of fiduciary net position and changes in fiduciary net position, and (3) notes to the financial statements. The System also includes in this report additional information to supplement the financial statements. \nIn addition, the System presents six types of required supplementary schedules, which provide historical trend information about the plan. The six types of schedules include (1) Schedule of Employers' and Nonemployers' Contributions (2) Schedule of Employers' and Nonemployers' Net Pension Liability and Related Ratios (3) Schedule of Changes in Employers' and Nonemployers' Net Pension Liability (4) Schedule of Investment Returns (5) Schedule of Funding Progress and (6) Schedule of Employer Contributions. \nThe System prepares its financial statements on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles as promulgated by the GASB. These statements provide information about the System's overall financial status. \nDescription of the Financial Statements The Combining Statement of Fiduciary Net Position is the statement of financial position presenting information that includes all of the System's assets and liabilities, with the balance representing the Net Position Restricted for Pensions and OPEB. The investments of the System in this statement are presented at fair value. This statement is presented on page 22. The Combining Statement of Changes in Fiduciary Net Position reports how the System's net position changed during the fiscal year. The additions include contributions to the retirement plans from employers, nonemployers, and members, group life insurance premiums, participant fees, and net investment income, which includes interest and dividends and the net increase in the fair value of investments, net of investment expenses. The deductions include benefit payments, life insurance death benefit payments, refunds of member contributions and interest, and administrative expenses. This statement is presented on page 24. The Defined Benefit Plans' Combining Statement of Fiduciary Net Position and the Combining Statement of Changes in Fiduciary Net Position present the financial position and changes in financial position for each of the funds administered by the System. These statements are on pages 23 and 25, respectively. Notes to the Financial Statements are presented to provide the information necessary for a full understanding of the financial statements. The notes to the financial statements begin on page 26. \n(continued) 16 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \nRequired Supplementary Information begins on page 55. The required schedules are discussed as follows:  The Schedule of Employers' and Nonemployers' Contributions presents the required contributions and the percent of required contributions actually contributed.  The Schedule of Employers' and Nonemployers' Net Pension Liability and Related Ratios presents the components of the net pension liability as of the fiscal year end and the fiduciary net position as a percentage of the total pension liability as of that date. This trend information will be accumulated to display a ten-year presentation.  The Schedule of Changes in Employers' and Nonemployers' Net Pension Liability presents total net pension liability and is measured as total pension liability less the amount of the fiduciary net position. This trend information will be accumulated to display a ten-year presentation.  The Schedule of Investment Returns presents historical trend information about the annual money-weighted rate of return on plan investments, net of plan investment expense. This trend information will be accumulated to display a ten-year presentation. \nThree of the required schedules above, the Schedule of Employers' and Nonemployers' Contributions, the Schedule of Employers' and Nonemployers' Net Pension Liability and Related Ratios, and Schedule of Changes in Employers' and Nonemployers' Net Pension Liability are applicable to five of the defined benefit pension plans: ERS, PSERS, LRS, GJRS, and GMPF. Two additional required schedules, the Schedule of Funding Progress and the Schedule of Employer Contributions relate to defined benefit OPEB plans, which are postemployment benefit plans. The Schedule of Funding Progress presents historical trend information about the actuarially determined funded status of the plans from a long-term, ongoing plan perspective, and the progress made in accumulating sufficient assets to fund benefit payments as they become due. The Schedule of Employer Contributions presents historical trend information about the annual required contributions of employers and percentage of such contributions in relation to actuarially determined requirements for the years presented. Notes to Required Supplementary Information are presented to provide the information necessary for a full understanding of the supplementary schedules. The notes to required supplementary information begin on page 66. Additional information is presented, beginning on page 69, which includes the Schedule of Administrative Expenses  Contributions and Expenses. The Schedule of Administrative Expenses  Contributions and Expenses presents the expenses incurred in the administration of these plans and funds, and the contributions from each plan and fund to provide for these expenses. \n(continued) 17 \n \n Financial Section \n \nManagement's Discussion and Analysis (Unaudited) Financial Analysis of the System \nA summary of the System's net position at June 30, 2016 and 2015 is as follows (dollars in thousands): \n \nAssets: Cash, cash equivalents, and receivables Investments Capital assets, net Total assets \nLiabilities: Due to brokers and accounts payable Net position \n \nNet Position \n \n2016 \n \n2015 \n \nAmount Change \n \nPercentage Change \n \n$ \n \n360,297 \n \n16,057,818 \n \n6,943 \n \n16,425,058 \n \n283,624 16,704,700 \n6,850 16,995,174 \n \n76,673) (646,882) \n93) (570,116) \n \n27.0) % (3.9) 1.4) (3.4) \n \n43,706 $ 16,381,352 \n \n37,251 16,957,923 \n \n6,455) (576,571) \n \n17.3) (3.4) % \n \n(continued) 18 \n \n Financial Section \n \nManagement's Discussion and Analysis (Unaudited) \nThe following table presents the investment allocation at June 30, 2016 and 2015: \n \nAsset allocation at June 30 (in percentages): Equities: Domestic International Private equity Domestic obligations: U.S. Treasuries U.S. Agencies Corporate and other bonds International obligations: Governments Corporates Mutual funds Commingled funds \nAsset allocation at June 30 (in thousands): Equities: Domestic International Private equity Domestic obligations: U.S. Treasuries U.S. Agencies Corporate and other bonds International obligations: Governments Corporates Mutual funds Commingled funds \n \n2016 \n47.8 % 14.5 \n0.6 \n13.8 -- \n14.1 \n0.5 1.1 -- 7.6 \n \n2015 \n48.8 % 16.5 \n0.3 \n11.4 0.1 14.2 \n0.5 1.0 -- 7.2 \n \n$ 7,673,204 2,332,236 93,885 \n \n$ 8,150,818 2,754,520 51,767 \n \n2,223,199 -- \n2,257,447 \n \n1,900,292 10,005 \n2,382,411 \n \n77,266 174,512 \n5,084 1,220,985 $ 16,057,818 \n \n77,112 173,609 \n5,271 1,198,895 $ 16,704,700 \n \nThe total investment portfolio decreased by $647 million from 2015, which is primarily due to net disbursements exceeding investment returns. \n \n(continued) 19 \n \n Financial Section \n \nManagement's Discussion and Analysis (Unaudited) \nGASB Statement No. 67 requires the System to report an annual money-weighted rate of return on plan investments, net of plan investment expense. A money-weighted return is weighted by the amount of dollars in the fund at the beginning and end of the performance period. A money-weighted return is highly influenced by the timing of cash flows into and out of the fund and is a better measure of an entity or person who controls the cash flows into and out of the fund. The nondiscretionary cash flows of the plan, primarily contributions and benefit payments, have a considerable impact on the money-weighted returns of the portfolio. The moneyweighted rate of return for the fiscal year ended June 30, 2016 was (7.23)%. \nThe investment rate of return in fiscal year ended June 30, 2016 was 1.4% with a (0.3)% return on equities, a 5.8% return on private equity (inception date of October 3, 2013) and a 5.5% return on fixed income investments. The five-year annualized rate of return on investments at June 30, 2016 was 7.4%, with an 8.9% return on equities and a 3.5% return on fixed income investments. \nA summary of the changes in the System's net position for the years ended June 30, 2016 and 2015 is as follows (dollars in thousands): \n \nAdditions: Employer contributions Nonemployer contributions Member contributions Participant fees Insurance premiums Net investment income Other Total additions \nDeductions: Benefit payments Refunds Death benefits Administrative expenses Total deductions Net decrease in net position \n \nChanges in Net Position \n \n2016 \n \n2015 \n \nAmount Change \n \nPercentage Change \n \n$ 621,058 43,933 \n151,264 1,429 4,542 \n192,765 15 \n1,015,006 \n \n537,253 42,520 \n138,871 1,298 4,768 \n609,626 14 \n1,334,350 \n \n83,805 1,413 \n12,393 131 (226) \n(416,861) 1 \n(319,344) \n \n15.6 % 3.3 8.9 \n10.1 (4.7) (68.4) 7.1 (23.9) \n \n1,518,314 19,762 37,256 16,245 \n1,591,577 $ (576,571) \n \n1,559,551 31,044 36,908 15,616 \n1,643,119 (308,769) \n \n(41,237) (11,282) \n348 629 (51,542) (267,802) \n \n(2.6) (36.3) \n0.9 4.0 (3.1) 86.7 % \n \n(continued) 20 \n \n Financial Section \nManagement's Discussion and Analysis (Unaudited) \nAdditions  The System accumulates resources needed to fund benefit payments through contributions and returns on invested funds. In fiscal year 2016, total contributions increased $97.6 million, or 13.6%, primarily because of an increase in the employer contribution rates coupled with modest overall salary increases. Net investment income decreased by $416.9 million, or 68.4%, due to negative returns in foreign equity holdings. Deductions  For fiscal year 2016, total deductions decreased 3.1%, primarily because of a 2.6% decrease in benefit payments resulting primarily from a decrease in participating employers in the 401(k) plan in 2015, coupled with a slight increase in the number of retirees and beneficiaries receiving benefits in 2016. Refunds decreased by 36.3%, which was primarily due to a decrease in the number of refunds processed during 2016. Death benefits increased by 0.9%, which was primarily due to an increase in the number of death claims processed during 2016. Administrative expenses increased by 4.0% over the prior year, primarily due to an increase in required employer retirement contributions, contractual services, and temporary services. Requests for Information This financial report is designed to provide a general overview of the System's finances for all those with interest in the System's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to Employees' Retirement System of Georgia, Two Northside 75, Suite 300, Atlanta, GA 30318. \n21 \n \n Financial Section \nCombining Statement of Fiduciary Net Position \nJune 30, 2016 (with comparative totals as of June 30, 2015) (In thousands) \n22 \n \nAssets Cash and cash equivalents \nReceivables: Contributions Interest and dividends Due from brokers for securities sold Other Unremitted insurance premiums \nTotal receivables \nInvestments - at fair value: Domestic obligations: U.S. Treasuries U.S. Agencies Corporate and other bonds International obligations: Governments Corporates Equities: Domestic International Private equity Mutual funds Commingled funds Equity in pooled investment fund \nTotal investments \nCapital assets, net \nTotal assets \nLiabilities \nAccounts payable and other Due to brokers for securities purchased Insurance premiums payable Due to participating systems \nTotal liabilities \nNet position restricted for pensions and OPEB \n \nDefined Benefit Plans \n \n$ \n \n29,450 \n \nPooled Investment \nFund \n157,913 \n \nDefined Contribution Plans \n \nGeorgia Defined Contribution \nPlan \n20,541 \n \n401(k) Plan \n12,873 \n \n457 Plan \n1,564 \n \nEliminations  \n \n36,545 -- -- \n1,408 672 \n38,625 \n \n-- 42,131 53,612 \n14 -- \n \n878 \n \n2,116 \n \n343 \n \n355 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n472 \n \n82 \n \n-- \n \n-- \n \n-- \n \n95,757 \n \n1,233 \n \n2,588 \n \n425 \n \n    (672) \n(672) \n \nTotal \n2016 222,341 \n \n2015 200,320 \n \n39,882 42,486 53,612 \n1,976 -- \n137,956 \n \n33,716 46,142 \n795 2,651 \n-- \n83,304 \n \n-- -- -- \n-- -- \n-- -- -- -- -- 14,969,966 \n14,969,966 \n6,943 \n15,044,984 \n \n2,181,601 -- \n2,210,608 \n77,266 174,512 \n7,662,885 2,331,018 \n93,885 -- -- -- \n14,731,775 \n \n14,985,445 \n \n41,598 -- \n46,839 \n-- -- \n-- -- -- -- -- -- \n88,437 \n \n110,211 \n \n   \n  \n4,970 586 -- \n2,457 671,872 \n \n679,885 \n \n695,346 \n \n   \n  \n5,349 632  \n2,627 549,113 \n \n557,721 \n \n559,710 \n \n   \n  \n   --  (14,969,966) \n(14,969,966) \n \n(14,970,638) \n \n2,223,199  \n2,257,447 \n77,266 174,512 \n7,673,204 2,332,236 \n93,885 5,084 \n1,220,985 -- \n16,057,818 \n6,943 \n16,425,058 \n \n1,900,292 10,005 \n2,382,411 \n77,112 173,609 \n8,150,818 2,754,520 \n51,767 5,271 \n1,198,895 -- \n16,704,700 \n6,850 \n16,995,174 \n \n24,767 -- \n672 -- \n25,439 \n \n$ \n \n15,019,545 \n \n1,478 14,001 \n-- 14,969,966 \n14,985,445 \n \n \n473 -- -- -- \n473 \n109,738 \n \n2,111    \n2,111 \n693,235 \n \n876    \n876 \n558,834 \n \n  (672) (14,969,966) \n(14,970,638) \n \n \n29,705 14,001 \n-- -- \n43,706 \n16,381,352 \n \n29,728 7,523 -- -- \n37,251 \n16,957,923 \n \nSee accompanying notes to financial statements. \n \n Financial Section \nDefined Benefit Plans  Combining Statement of Fiduciary Net Position \nJune 30, 2016 (In thousands) \n23 \n \nAssets \nCash and cash equivalents \nReceivables: Contributions Interest and dividends Due from brokers for securities sold Other Unremitted insurance premiums \nTotal receivables \nInvestments - at fair value: Domestic obligations: U.S. Treasuries U.S. Agencies Corporate and other bonds International obligations: Governments Corporates Equities: Domestic International Private equity Equity in pooled investment fund \nTotal investments \nCapital assets, net \nTotal assets \nLiabilities \nAccounts payable and other Due to brokers for securities purchased Insurance premiums payable Due to participating systems \nTotal liabilities \nNet position restricted for pensions and OPEB \n \nEmployees' Retirement \nSystem \n \nPublic School Employees Retirement System \n \n$ \n \n28,592 \n \n136 \n \nDefined Benefit Pension Plans \n \nLegislative Retirement \nSystem \n43 \n \nGeorgia Judicial Retirement System \n464 \n \nGeorgia Military Pension Fund \n78 \n \nSuperior Court Judges \nRetirement Fund \n23 \n \nDistrict Attorneys Retirement \nFund \n3 \n \nDefined Benefit OPEB Plans \n \nState Employees' Assurance Department \nActive \n14 \n \nState Employees' Assurance Department \nOPEB \n4 \n \nSurvivors Benefit Fund \n93 \n \nDefined Benefit Plans Total \n29,450 \n \n35,033 \n \n-- \n \n28 \n \n1,484 \n \n \n \n \n \n \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n \n \n-- \n \n1,341 \n \n61 \n \n1 \n \n5 \n \n \n \n \n \n \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n80 \n \n592 \n \n36,374 \n \n61 \n \n29 \n \n1,489 \n \n \n \n \n \n \n \n80 \n \n592 \n \n-- \n \n36,545 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n1,408 \n \n-- \n \n672 \n \n-- \n \n38,625 \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n-- \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n-- \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n-- \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n-- \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n-- \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n-- \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n-- \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n-- \n \n \n \n-- \n \n-- \n \n12,324,526 \n \n804,666 \n \n31,088 \n \n401,705 \n \n17,714 \n \n \n \n \n \n240,948 \n \n1,028,448 \n \n120,871 \n \n14,969,966 \n \n12,324,526 \n \n804,666 \n \n31,088 \n \n401,705 \n \n17,714 \n \n \n \n \n \n240,948 \n \n1,028,448 \n \n120,871 \n \n14,969,966 \n \n6,943 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n-- \n \n6,943 \n \n12,396,435 \n \n804,863 \n \n31,160 \n \n403,658 \n \n17,792 \n \n23 \n \n3 \n \n241,042 \n \n1,029,044 \n \n120,964 \n \n15,044,984 \n \n22,216 \n \n1,088 \n \n184 \n \n628 \n \n75 \n \n15 \n \n1 \n \n57 \n \n503 \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n \n \n \n \n652 \n \n-- \n \n1 \n \n19 \n \n \n \n \n \n \n \n \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n \n \n \n \n22,868 \n \n1,088 \n \n185 \n \n647 \n \n75 \n \n15 \n \n1 \n \n57 \n \n503 \n \n-- \n \n24,767 \n \n-- \n \n-- \n \n-- \n \n672 \n \n-- \n \n-- \n \n-- \n \n25,439 \n \n$ 12,373,567 \n \n803,775 \n \n30,975 \n \n403,011 \n \n17,717 \n \n8 \n \n2 \n \n240,985 \n \n1,028,541 \n \n120,964 \n \n15,019,545 \n \nSee accompanying notes to financial statements. \n \n Financial Section \nCombining Statement of Changes in Fiduciary Net Position \nYear ended June 30, 2016 (with comparative totals for the year ended June 30, 2015) (In thousands) \n24 \n \nAdditions: Contributions: Employer Nonemployer Member Participant fees Insurance premiums Administrative expense allotment \n \nDefined Benefit Plans \n \nPooled Investment \nFund \n \nDefined Contribution Plans \n \nGeorgia \n \nDefined \n \nContribution \n \n401(k) \n \n457 \n \nPlan \n \nPlan \n \nPlan \n \n$ \n \n591,076 \n \n43,933 \n \n39,271 \n \n-- \n \n4,542 \n \n15 \n \n \n \n \n \n29,982 \n \n \n \n \n \n \n \n-- \n \n \n \n \n \n14,708 \n \n79,422 \n \n17,413 \n \n \n \n \n \n1,429 \n \n \n \n \n \n \n \n-- \n \n \n \n \n \n \n \n-- \n \n \n \nInvestment income: Net increase (decrease) in fair value of investments Interest and dividends Other Less investment expenses Allocation of investment income \nNet investment income \nTotal additions \n \n-- -- -- (10,598) 184,636 \n174,038 \n853,325 \n \n(147,869) 338,575 \n-- (6,070) (184,636) \n \n \n \n3,913 1,732 \n (54)  \n5,591 \n20,299 \n \n7,188 1 \n485 (2,393) \n-- \n5,281 \n116,114 \n \n7,993  \n622 (760) \n \n7,855 \n25,268 \n \nDeductions: Benefit payments Refunds of member contributions and interest Death benefits Administrative expenses Total deductions \nNet increase (decrease) in net position \nNet position restricted for pensions and OPEB: \nBeginning of year \nEnd of year \n \n1,428,483 7,851 \n37,256 11,827 1,485,417 (632,092) \n15,651,637 $ 15,019,545 \n \n \n \n35 \n \n46,508 \n \n43,288 \n \n \n \n11,911 \n \n-- \n \n \n \n \n \n \n \n-- \n \n \n \n \n \n766 \n \n2,832 \n \n820 \n \n \n \n12,712 \n \n49,340 \n \n44,108 \n \n \n \n7,587 \n \n66,774 \n \n(18,840) \n \n \n \n102,151 \n \n626,461 \n \n577,674 \n \n \n \n109,738 \n \n693,235 \n \n558,834 \n \nTotal \n \n2016 \n \n2015 \n \n621,058 43,933 \n151,264 1,429 4,542 15 \n \n537,253 42,520 \n138,871 1,298 4,768 14 \n \n(128,775) 340,308 \n1,107 (19,875) \n \n192,765 \n1,015,006 \n \n278,140 350,813 \n1,313 (20,640) \n-- \n609,626 \n1,334,350 \n \n1,518,314 19,762 37,256 16,245 \n1,591,577 \n(576,571) \n \n1,559,551 31,044 36,908 15,616 \n1,643,119 \n(308,769) \n \n16,957,923 16,381,352 \n \n17,266,692 16,957,923 \n \nSee accompanying notes to financial statements. \n \n Financial Section \nDefined Benefit Plans  Combining Statement of Changes in Fiduciary Net Position \nYear ended June 30, 2016 (In thousands) \n25 \n \nAdditions: Contributions: Employer Nonemployer Member Participant fees Insurance premiums Administrative expense allotment \nInvestment income: Net increase (decrease) in fair value of investments Interest and dividends Other Less investment expenses Allocation of investment income \nNet investment income \nTotal additions \n \nDefined Benefit Pension Plans \n \nEmployees' Retirement \nSystem \n \nPublic School Employees Retirement System \n \nLegislative Retirement \nSystem \n \nGeorgia Judicial Retirement System \n \nGeorgia Military Pension Fund \n \nSuperior Court Judges \nRetirement Fund \n \nDistrict Attorneys Retirement \nFund \n \nDefined Benefit OPEB Plans \n \nState Employees' Assurance Department \nActive \n \nState Employees' Assurance Department \nOPEB \n \nSurvivors Benefit Fund \n \nDefined Benefit Plans Total \n \n$ 583,082 \n \n \n \n \n \n4,754 \n \n1,990 \n \n1,199 \n \n51 \n \n \n \n \n \n-- \n \n591,076 \n \n12,484 \n \n28,580 \n \n \n \n2,869 \n \n \n \n-- \n \n \n \n \n \n \n \n-- \n \n43,933 \n \n31,961 \n \n1,925 \n \n328 \n \n5,507 \n \n \n \n-- \n \n \n \n \n \n \n \n-- \n \n39,721 \n \n-- \n \n \n \n \n \n \n \n \n \n-- \n \n \n \n \n \n \n \n-- \n \n \n \n-- \n \n \n \n \n \n \n \n \n \n-- \n \n \n \n611 \n \n3,931 \n \n-- \n \n4,542 \n \n10 \n \n \n \n \n \n \n \n \n \n4 \n \n1 \n \n \n \n \n \n-- \n \n15 \n \n-- -- -- (9,459) 150,751 \n141,292 \n768,829 \n \n   (356) 10,165 \n9,809 \n40,314 \n \n   (14) 377 \n363 \n691 \n \n   (172) 5,227 \n5,055 \n18,185 \n \n   (5) 245 \n240 \n2,230 \n \n-- -- -- -- -- \n \n1,203 \n \n \n \n \n \n \n \n-- \n \n \n \n \n \n \n \n \n \n-- \n \n \n \n \n \n \n \n \n \n-- \n \n \n \n \n \n(60) \n \n(532) \n \n-- \n \n(10,598) \n \n \n \n3,169 \n \n13,091 \n \n1,611 \n \n184,636 \n \n \n \n3,109 \n \n12,559 \n \n1,611 \n \n174,038 \n \n52 \n \n3,720 \n \n16,490 \n \n1,611 \n \n853,325 \n \nDeductions: Benefit payments Refunds of member contributions and interest Death benefits Administrative expenses \nTotal deductions \nTransfers to (from) other plans \nNet increase (decrease) in net position \n \n1,347,633 7,087 -- 8,506 \n1,363,226 \n \n(594,397) \n \n57,903 465  \n1,321 \n59,689 \n \n(19,375) \n \n1,724 38  \n313 \n2,075 \n \n(1,384) \n \n19,011 261  754 \n20,026 \n \n(1,841) \n \n963   \n262 \n1,225 \n \n1,005 \n \n1,198 -- -- 4 \n1,202 \n \n1 \n \n51 \n \n \n \n \n \n \n \n \n \n \n \n \n \n3,345 \n \n33,911 \n \n1 \n \n67 \n \n599 \n \n52 \n \n3,412 \n \n34,510 \n \n-- \n \n1,428,483 \n \n-- \n \n7,851 \n \n-- \n \n37,256 \n \n-- \n \n11,827 \n \n-- \n \n1,485,417 \n \n \n \n \n \n2 \n \n(2) \n \n \n \n \n \n308 \n \n(18,018) \n \n1,609 \n \n(632,092) \n \nNet position restricted for pensions and OPEB: \n \nBeginning of year \n \n12,967,964 \n \n823,150 \n \n32,359 \n \n404,852 \n \n16,712 \n \n7 \n \n2 \n \n240,677 \n \n1,046,559 \n \n119,355 \n \n15,651,637 \n \nEnd of year \n \n$ 12,373,567 \n \n803,775 \n \n30,975 \n \n403,011 \n \n17,717 \n \n8 \n \n2 \n \n240,985 \n \n1,028,541 \n \n120,964 \n \n15,019,545 \n \nSee accompanying notes to financial statements. \n \n Financial Section \n \nNotes to Financial Statements \nJune 30, 2016 \n \n(1) General \n \nThe accompanying basic financial statements of the Employees' Retirement System of Georgia, including all plans and funds administered by the Employees' Retirement System of Georgia (collectively, the System), is comprised of the Employees' Retirement System of Georgia (ERS), Public School Employees Retirement System (PSERS), Legislative Retirement System (LRS), Georgia Judicial Retirement System (GJRS), Georgia Military Pension Fund (GMPF), State Employees' Assurance Department Active Members Trust Fund (SEAD-Active), State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEAD-OPEB), Survivors Benefit Fund (SBF), Superior Court Judges Retirement Fund (SCJRF), District Attorneys Retirement Fund (DARF), Georgia Defined Contribution Plan (GDCP), State of Georgia Employee's Deferred Compensation Plan (401(k) Plan), and the State of Georgia Employees' Deferred Compensation Plan (457 Plan). All significant transactions among the various systems, departments, and funds have been eliminated. The Board of Trustees, comprised of active and retired members, ex-officio state employees, and appointees by the Governor, are ultimately responsible for the administration of the System. \n \n(2) Authorizing Legislation and Plan Descriptions \n \nEach plan and fund, including benefit and contribution provisions, was established and can be amended by state law. The following summarizes authorizing legislation and the plan description of each retirement fund: \n(a) ERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees and has the powers and privileges of a corporation. There were 425 employers and 1 nonemployer contributing entity participating in the plan during 2016. \n \nMembership As of June 30, 2016, participation in ERS is as follows: \nInactive members and beneficiaries currently receiving benefits Inactive members entitled to benefits but not yet receiving benefits Active plan members \nTotal \n \n48,449 57,995 59,766 \n166,210 \n \nBenefits The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the Old Plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are New Plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \nUnder the Old Plan, the New Plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60, or after 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, post-retirement cost-of-living adjustments may also be made to members' benefits, provided the members \n(continued) 26 \n \n Financial Section \n \nNotes to Financial Statements \nJune 30, 2016 \n \nwere hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \nContributions and Vesting Member contributions under the Old Plan are 4% of annual compensation, up to $4,200, plus 6% of annual compensation in excess of $4,200. Under the Old Plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the Old Plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the New Plan and GSEPS are 1.25% of annual compensation. The state is required to contribute at a specified percentage of active member payrolls, determined annually by actuarial valuation. The state contributions are not at any time refundable to the member or his/her beneficiary. \nPursuant to The Official Code of Georgia Annotated (O.C.G.A.) 47-2-292, the employer contributions for local tax commissioners are funded by the State of Georgia on behalf of the local county employer and pursuant to O.C.G.A. 472-290, the employer contribution for certain State Court employees is funded by the state on behalf of the local county employer. \nEmployer and nonemployer contributions as a percentage of covered payroll required for fiscal year 2016 were based on the June 30, 2013 actuarial valuation for the Old Plan, New Plan, and GSEPS as follows: \n \nEmployer and nonemployer: Normal Employer paid for member Accrued liability \nTotal \n \nOld Plan \n1.35 % 4.75 18.62 24.72 % \n \nNew Plan \n6.10 %  \n18.62 24.72 % \n \nGSEPS \n3.07 % -- \n18.62 21.69 % \n \nMembers become vested after ten years of membership service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \n \n(b) PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. There were 182 employers and 1 nonemployer contributing entity participating in the plan during 2016. \nMembership As of June 30, 2016, participation in PSERS is as follows: \n \nInactive members and beneficiaries currently receiving benefits Inactive members entitled to benefits but not yet receiving benefits Active plan members \nTotal \n \n17,626 50,672 34,874 \n103,172 \n \n(continued) 27 \n \n Financial Section \n \nNotes to Financial Statements \nBenefits A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \nUpon retirement, the member will receive a monthly benefit of $14.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-ofliving adjustments to the monthly benefits. \nContributions and Vesting Individuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. \nEmployer contributions required for the year ended June 30, 2016 were $764.97 per active member and were based on the June 30, 2013 actuarial valuation. \nMembers become vested after ten years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \n \n(c) LRS is a single-employer defined benefit pension plan established by the Georgia General Assembly from 1967-1971, and later reestablished in 1979, for the purpose of providing retirement allowances for all members of the Georgia General Assembly. LRS is administered by the ERS Board of Trustees. There was one employer in the plan for 2016. \n \nMembership As of June 30, 2016, participation in LRS is as follows: \n \nInactive members and beneficiaries currently receiving benefits \n \n257 \n \nInactive members entitled to benefits but not yet receiving benefits \n \n154 \n \nActive plan members \n \n224 \n \nTotal \n \n635 \n \nBenefits A member's normal retirement is after eight years of creditable service and attainment of age 65, or eight years of membership service (four legislative terms) and attainment of age 62. A member may retire early and elect to receive a monthly retirement benefit after completion of eight years of membership service and attainment of age 60; however, the retirement benefit is reduced by 5% for each year the member is under age 62. \nUpon retirement, the member will receive a monthly service retirement allowance of $36, multiplied by the number of years of creditable service, reduced by age reduction factors, if applicable. Death benefits are also available through the plan. \nContributions and Vesting Member contributions are 8.5% of annual salary. The state pays member contributions in excess of 4.75% of annual compensation. Employer contributions are actuarially determined and approved and certified by the ERS Board of Trustees. \nThere were no employer contributions required for the year ended June 30, 2016 based on the June 30, 2013 actuarial valuation. \n(continued) 28 \n \n Financial Section \n \nNotes to Financial Statements \nMembers become vested after eight years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \n(d) GJRS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1998 for the purpose of providing retirement allowances for judges and solicitors general of the state courts and juvenile court judges in Georgia, and their survivors and other beneficiaries, superior court judges of the State of Georgia, and district attorneys of the State of Georgia. \nThe GJRS was also created to serve the members and beneficiaries of the Trial Judges and Solicitors Retirement Fund, the Superior Court Judges Retirement System, and the District Attorneys Retirement System (collectively, the Predecessor Retirement Systems). As of June 30, 1998, any person who was an active, inactive, or retired member or beneficiary of the Predecessor Retirement Systems was transferred to GJRS in the same status effective July 1, 1998. All assets of the Predecessor Retirement Systems were transferred to GJRS as of July 1, 1998. The ERS Board of Trustees and three additional trustees administer GJRS. There were 93 employers and 1 nonemployer contributing entity participating in the plan during 2016. \nMembership As of June 30, 2016, participation in GJRS is as follows: \n \nInactive members and beneficiaries currently receiving benefits \n \n295 \n \nInactive members entitled to benefits but not yet receiving benefits \n \n61 \n \nActive plan members \n \n526 \n \nTotal \n \n882 \n \nBenefits The normal retirement for GJRS is age 60, with 16 years of creditable service; however, a member may retire at age 60 with a minimum of 10 years of creditable service. \nAnnual retirement benefits paid to members are computed as 66% of state paid salary at retirement for district attorneys and superior court judges and 66% of the average over 24 consecutive months for trial judges and solicitors, plus 1% for each year of credited service over 16 years, not to exceed 24 years. Early retirement benefits paid to members are computed as the pro rata portion of the normal retirement benefit, based on service not to exceed 16 years. Death, disability, and spousal benefits are also available. \nContributions and Vesting Members are required to contribute 7.5% of their annual salary. Those who became members prior to July 1, 2012 must also contribute an additional 2.5% of their annual salary if spousal benefit is elected. Employer contributions are actuarially determined and approved and certified by the GJRS Board of Trustees. \nPursuant to O.C.G.A. 47-23-81, the employer contributions for state court judges and solicitors are funded by the State of Georgia on behalf of the local county employers and pursuant to O.C.G.A. 47-23-82, the employer contributions for juvenile court judges are funded by the state on behalf of local county employers. \n \n(continued) 29 \n \n Financial Section \n \nNotes to Financial Statements \nEmployer and nonemployer contributions required for fiscal year 2016 were based on the June 30, 2013 actuarial valuation as follows: \n \nEmployer and nonemployer: Normal Accrued liability \nTotal \n \n14.36 % (2.17) \n12.19 % \n \nMembers become vested after ten years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \n \n(e) The GMPF is a single-employer defined benefit pension plan established on July 1, 2002 by the Georgia General Assembly for the purpose of providing retirement allowances and other benefits for members of the Georgia National Guard (National Guard). The ERS Board of Trustees administers the GMPF. \nMembership As of June 30, 2016, GMPF had 915 retirees and beneficiaries currently receiving benefits. Active and inactive plan member information is maintained by one employer, the Georgia Department of Defense. \nBenefits A member becomes eligible for benefits upon attainment of age 60, with 20 or more years of creditable service (including at least 15 years of service as a member of the National Guard), having served at least 10 consecutive years as a member of the National Guard immediately prior to discharge, and having received an honorable discharge from the National Guard. \nThe retirement allowance is payable for life in the amount of $50 per month, plus $5 per month for each year of creditable service in excess of 20 years. The maximum benefit is $100 per month. \nContributions and Vesting Employer contributions are actuarially determined and approved and certified by the ERS Board of Trustees. There are no member contributions required. \nEmployer contributions required for the year ended June 30, 2016 were $146.58 per active member and were based on the June 30, 2013 actuarial valuation. \nA member becomes vested after 20 years of creditable service (including at least 15 years of service as a member of the National Guard), having served at least 10 consecutive years as a member of the National Guard immediately prior to discharge, and having received an honorable discharge from the National Guard. \n \n(f) SEAD-Active is a cost-sharing multiple-employer defined other post-employment benefit plan created in 2007 by the Georgia General Assembly to amend Title 47 of the Official Code of Georgia Annotated, relating to retirement, so as to establish a fund for the provision of term life insurance to active members of ERS, LRS, and GJRS. Effective July 1, 2009, no newly hired members of any Georgia public retirement system are eligible for term life insurance under SEAD. The SEAD-Active trust fund accumulates the premiums received from the aforementioned retirement systems, including interest earned on deposits and investments of such payments from active members. There were 477 employers participating in the plan during 2016. \n \n(continued) 30 \n \n Financial Section \n \nNotes to Financial Statements \nAs of June 30, 2016, participation in SEAD-Active is as follows: \n \nRetirees and beneficiaries Terminated employees Active plan members \nTotal \n \n  31,869 \n31,869 \n \nEmployee contribution rates as a percentage of member's salaries were appropriated for the fiscal year ending June 30, 2016 as follows: ERS Old Plan  0.05% and ERS New Plan, LRS and GJRS  0.02%. ERS Old Plan members were hired prior to July 1, 1982 and New Plan members were hired on or after July 1, 1982, but prior to January 1, 2009. \n \nGeorgia law provides that employee contributions to the plan shall be in an amount established by the Board of Trustees not to exceed one half of 1% of the member's earnable compensation. There were no employer contributions required for the fiscal year ended June 30, 2016. \n \nAccording to the policy terms covering the lives of members, insurance coverage is provided on a monthly, renewable term basis, and no return premiums or cash value are earned. The net position represents the excess accumulation of investment income and premiums over benefit payments and expenses and are held as a reserve for payment of death benefits under existing policies. \n \nThe amount of insurance coverage is equal to 18 times monthly earnable compensation frozen at age 60. For members with no creditable service prior to April 1, 1964, the amount decreases from age 60 by a half of 1% per month until age 65 at which point the member will be covered for 70% of the age 60 coverage. Life insurance proceeds are paid in lump sum to the beneficiary upon death of the member. \n \nAdministrative costs for the plan are determined based on the plan's share of overhead costs to accumulate and invest funds, actuarial services, and to process benefit payments to beneficiaries. Administrative fees are financed from the assets of the plan. \n \n(g) SEAD-OPEB is a cost-sharing multiple-employer defined other post employment benefit plan created in 2007 by the Georgia General Assembly to amend Title 47 of the Official Code of Georgia Annotated, relating to retirement, so as to establish a fund for the provision of term life insurance to retired and vested inactive members of ERS, LRS, and GJRS. Effective July 1, 2009, no newly hired members of any Georgia public retirement system are eligible for term life insurance under SEAD. The SEAD-OPEB trust fund accumulates the premiums received from the aforementioned retirement systems, including interest earned on deposits and investments of such payments from retired and vested inactive members. There were 477 employers participating in the plan during 2016. \nAs of June 30, 2016, participation in SEAD-OPEB is as follows: \n \nRetirees and beneficiaries Terminated employees Active plan members \nTotal \n \n40,793 918 \n31,869 \n73,580 \n \n(continued) 31 \n \n Financial Section \nNotes to Financial Statements \nEmployee contribution rates as a percentage of member's salaries were appropriated for the fiscal year ending June 30, 2016 as follows: ERS Old Plan  0.45% and ERS New Plan, LRS and GJRS  0.23%. ERS Old Plan members were hired prior to July 1, 1982 and New Plan members were hired on or after July 1, 1982, but prior to January 1, 2009. \nGeorgia law provides that employee contributions to the plan shall be in an amount established by the Board of Trustees not to exceed one half of 1% of the member's earnable compensation. There were no employer contributions required for the fiscal year ended June 30, 2016. \nAccording to the policy terms covering the lives of members, insurance coverage is provided on a monthly, renewable term basis, and no return premiums or cash value are earned. The net position represents the excess accumulation of investment income and premiums over benefit payments and expenses and are held as a reserve for payment of death benefits under existing policies. \nThe amount of insurance for a retiree with creditable service prior to April 1, 1964 is the full amount of insurance under SEAD-Active in effect on the date of retirement. The amount of insurance for a service retiree with no creditable service prior to April 1, 1964 is 70% of the amount of insurance under SEAD-Active at age 60 or at termination, if earlier. Life insurance proceeds are paid in a lump sum to the beneficiary upon death of the retiree. \nAdministrative costs for the plan are determined based on the plan's share of overhead costs to accumulate and invest funds, actuarial services, and to process benefit payments to beneficiaries. Administrative fees are financed from the assets of the plan. \n(h) Survivors Benefit Fund (SBF) was established under O.C.G.A. 47-2-128(c)(3) within the ERS trust solely for maintaining group term life insurance coverage for members of the plan. All assets of SBF are therefore limited to the payment of benefits and expenses for such coverage and cannot be used to pay pension benefits of ERS. SBF is shown on the financial statements separately with the OPEB plans to closely align with their ultimate purpose. While shown with the OPEB plans for reporting purposes, SBF may only be used to pay benefits or expenses of SEAD-OPEB or SEAD-Active with authorization by the ERS Board of Trustees. There are no liabilities associated with this fund and an actuarial valuation is not prepared, as there are no funding requirements. \n(i) SCJRF is a single-employer defined benefit pension plan established by the Georgia General Assembly in 1945 for the purpose of providing retirement benefits to the superior court judges of the State of Georgia. SCJRF is directed by its own Board of Trustees. The Boards of Trustees for ERS and SCJRF entered into a contract for ERS to administer the plan effective July 1, 1995. \nMembership As of June 30, 2016, SCJRF had 16 retirees and beneficiaries currently receiving benefits and no active members. No new members are allowed into SCJRF. \nBenefits The normal retirement for SCJRF is age 68, with 19 years of creditable service, with a benefit of two-thirds the salary paid to superior court judges. A member may also retire at age 65, with a minimum of 10 years of creditable service, with a benefit of one-half the salary paid to superior court judges. Death, disability, and spousal benefits are also available. \nContributions and Vesting Employer contributions are not actuarially determined, but are provided on an as-needed basis to fund current benefits. \n(continued) 32 \n \n Financial Section \nNotes to Financial Statements \n(j) DARF is a multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1949 for the purpose of providing retirement benefits to the district attorneys of the State of Georgia. DARF is directed by its own Board of Trustees. The Boards of Trustees for ERS and DARF entered into a contract for ERS to administer the plan effective July 1, 1995. \nMembership As of June 30, 2016, DARF had 5 retirees and beneficiaries currently receiving benefits and no active members. No new members are allowed into DARF. \nBenefits Persons appointed as district attorney emeritus shall receive an annual benefit of $15,000, or one-half of the state salary received by such person as a district attorney for the calendar year immediately prior to the person's retirement, whichever is greater. \nContributions and Vesting Employer contributions are not actuarially determined, but are provided on an as-needed basis to fund current benefits. \n(k) GDCP is a defined contribution plan established by the Georgia General Assembly in July 1992 for the purpose of providing retirement allowances for state employees who are not members of a public retirement or pension system and do not participate in Social Security. GDCP is administered by the ERS Board of Trustees. There were 71 employers participating in the plan during 2016. There were 98,843 members as of June 30, 2016. \nBenefits A member may retire and elect to receive periodic payments after attainment of age 65. The payments will be based upon mortality tables and interest assumptions adopted by the ERS Board of Trustees. If a terminated member has less than $5,000 credited to his/her account, the ERS Board of Trustees has the option of requiring a lump-sum distribution to the member. Upon the death of a member, a lump-sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary. \nContributions Members are required to contribute 7.5% of their annual salary. There are no employer contributions. Earnings will be credited to each member's account as adopted by the ERS Board of Trustees. Upon termination of employment, the amount of the member's account is refundable upon request by the member. \n(l) The 401(k) Plan was established by the State of Georgia Employee Benefit Plan Council (the Council) in accordance with Georgia Law 1985, as amended, Official Code of Georgia, Sections 45-18-50 through 45-18-58, and Section 401(k) of the Internal Revenue Code (IRC). On October 1, 1994, activity commenced when the 401(k) Plan became available to employees of the State of Georgia Community Service Boards (CSBs). On December 1, 1998, the 401(k) Plan became available to employees of the Georgia Lottery Corporation (GLC). On July 1, 2005, the Plan became available to employees of Fayette County Board of Education; on July 1, 2006, the Plan became available to employees of Walton County Board of Education; and on January 1, 2010, the Plan became available to employees of Henry County Board of Education. \nEffective July 1, 1998, the State of Georgia Employee's Deferred Compensation Group Trust (Master Trust) was formed for the State of Georgia Deferred Compensation Program to serve as the funding medium for the 401(k) Plan. At that time, the 401(k) Plan began operating on an employee elective deferral basis for all state employees working at least 1,000 hours in a 12-month period. All assets of the 401(k) Plan are held in trust for the exclusive benefit of the participants and their beneficiaries. The assets of the 401(k) Plan and the 457 Plan are commingled in the Master Trust with the respective trusts owning units of the Master Trust. Participant contributions are invested according to the participant's investment \n(continued) 33 \n \n Financial Section \n \nNotes to Financial Statements \n \nelection. If the participant does not make an election, investments are automatically defaulted to a Lifecycle Fund based on the participant's date of birth. \n \nEffective July 1, 2005 (HB275), ERS became the trustee of the 401(k) Plan. Aon Hewitt and JPMorgan Chase hold, administer, and invest the assets of the Master Trust. \n \nContributions and Vesting Participating CSBs, the GLC, and Walton and Henry County Boards of Education offer employer contributions, some matching, some automatic, and some a combination of both, to eligible employees at various rates (limited to a maximum of $265,000 base salary for both calendar year 2015 and 2016). As of January 1, 2009, individual participants may defer up to 80% of eligible compensation, or up to limits prescribed by the IRC (whichever is less). \n \nEffective January 1, 2009, in accordance with O.C.G.A. 47-2-350 through 47-2-360, newly hired state employees, as well as rehired state employees who did not maintain eligibility for the ERS Old Plan or New Plan, are members of GSEPS. From January 1, 2009 to June 30, 2014, the GSEPS tier included automatic enrollment in the 401(k) Plan at a contribution rate of 1% of salary. Effective July 1, 2014, in accordance with HB764, the employee contribution rate for automatic enrollment increased from 1% to 5%. The state matches 100% of the employee's initial 1% contribution and 50% of contribution percentages 2 through 5. Therefore, the state will match 3% of salary when an employee contributes at least 5% to the 401(k) Plan. Employee contributions greater than 5% of salary do not receive any matching funds. Plan participants who are not employees of the GLC, a CSB, Walton and Henry County Boards of Education, or who are not GSEPS eligible do not receive any employer contributions in their 401(k) Plan. \n \nAll employer contributions are subject to a vesting schedule, which determines eligibility to receive all or a portion of the employer contribution balance at the time of any distribution from the account after separation from all state service. Vesting is determined based on the following schedule: \n \nLess than 1 year 1 2 3 4 5 or more years \n \n--% 20 40 60 80 100 \n \nFor CSB/GLC participants whose services terminated prior to January 1, 2010 but after December 31, 2001, the following vesting schedule applies: \n \nLess than 2 years 2 3 4 5 6 or more years \n \n--% 20 40 60 80 100 \n \nFor CSB/GLC participants whose services terminated prior to January 1, 2002, the following vesting schedule applies: \n \nLess than 3 years 3 4 5 6 7 or more years \n \n--% 20 40 60 80 100 \n34 \n \n(continued) \n \n Financial Section \nNotes to Financial Statements \nEmployee contributions and earnings thereon are 100% vested at all times. The 401(k) Plan also allows participants to roll over amounts from other qualified plans to their respective account in the 401(k) Plan on approval by the 401(k) Plan Administrator. Such rollovers are 100% vested at the time of transfer. \nParticipation As of June 30, 2016, the 401(k) plan had 55,542 participants with a balance. A total of 484 employers transmitted contributions to the plan during 2016. \nDistributions The participant may receive the value of his or her vested accounts upon attaining age 59.5, qualifying financial hardship, or 30 days after retirement or other termination of service (employer contribution balances are only eligible for distribution upon separation from service). Upon the death of a participant, his or her beneficiary shall be entitled to the vested value of his or her accounts. Employees who die while actively employed and eligible for 401(k) Plan employer matching contributions become fully vested in employer contributions upon death. Distributions are made in installments or in a lump sum. \n(m) The 457 Plan was established by the State Personnel Board in accordance with Georgia laws 1974, page 198 as amended, Official Code of Georgia, Sections 45-18-30 through 45-18-36, and Section 457 of the Internal Revenue Code (IRC). The 457 Plan is available to employees of the State of Georgia and county health departments and permits such employees to defer a portion of their annual salary until future years. Employee contributions and earnings thereon are 100% vested at all times. \nEffective July 1, 1998, the Master Trust was formed for the State of Georgia Deferred Compensation Program to serve as the funding medium for the 457 Plan. All assets of the 457 Plan are held in trust for the exclusive benefit of the participants and their beneficiaries. The assets of the 457 Plan and the 401(k) Plan are commingled in the Master Trust with the respective trusts owning units of the Master Trust. Participant contributions are invested according to the participant's investment election. If the participant does not make an election, investments are automatically defaulted to a Lifecycle Fund based on the participant's date of birth. \nEffective July 1, 2005 (HB275), ERS became the trustee of the 457 Plan. Aon Hewitt and JPMorgan Chase hold, administer, and invest the assets of the Master Trust. \nParticipation As of June 30, 2016, the 457 plan had 13,029 participants with a balance. A total of 319 employers transmitted contributions to the plan during 2016. \nDistributions The balance in the employee's account in the 457 Plan is not available to the employee until age 70.5, termination, retirement, death, or unforeseeable emergency as defined in the 457 Plan. Upon the death of a participant, his or her beneficiary shall be entitled to the vested value of his or her accounts. Distributions are made in installments or in a lump sum. \n(continued) 35 \n \n Financial Section \n \nNotes to Financial Statements \n(3) Significant Accounting Policies and System Asset Matters (a) Basis of Accounting The System's financial statements are prepared on the accrual basis of accounting. Contributions from the employers, nonemployers, and the members are recognized when due, based on statutory requirements. Retirement and refund payments are recognized as deductions when due and payable. \n \n(b) Reporting Entity \nThe System is a component unit of the State of Georgia; however, it is accountable for its own fiscal matters and presentation \nof its separate financial statements. The System has considered potential component units under GASB Statement No. 61, The Financial Reporting Entity's Omnibus  An Amendment of GASB Statement No. 14 and No. 34, and GASB Statement No. 39, Determining Whether Certain Organizations are Component Units, and determined there were no component units \nof the System. \n \n(c) Cash and Cash Equivalents Cash and cash equivalents, reported at cost, include cash on deposit at banks and cash on deposit with the investment custodian earning a credit to offset fees. \n \n(d) Investments Investments are reported at fair value and net asset value (NAV) as a practical expedient to fair value. Equity securities traded on a national or international exchange are valued at the last reported sales price. Investments in private investment companies are valued utilizing the NAVs provided by the underlying private investment companies as a practical expedient. The Fund applies the practical expedient to its investments in private investment companies on an investment by investment basis, and consistent with the Fund's entire position in a particular investment, unless it is probable that the Fund will sell a portion of an investment at an amount different from the NAV of the investment. Private equity fair value is measured using the valuation of the underlying companies as reported by the general partner. These investments, in the form of limited partnerships, reflect values and related performance on a quarter lag basis due to the nature of the investments and the time it takes to value them. The estimated fair value of investments without readily ascertainable market values could differ significantly if a ready market for these assets existed. Fixed income securities are valued based primarily on quoted market prices provided by independent pricing sources. Global foreign exchange holdings are translated using a third party vendor. Investment income is recognized as earned by the System. There are no investments in, loans to, or leases with parties related to the System. \n \nThe System utilizes various investment instruments. Investment securities, in general, are exposed to various risks, such as interest rate, credit, foreign currency, and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the financial statements. \n \nThe System's policy in regard to the allocation of invested assets is established on a cost basis in compliance with Georgia statute. Plan assets are managed on a total return basis with a long-term objective of achieving and maintaining a fully funded status for the benefits provided through the pension plan. The following was the System's adopted asset allocation policy as of June 30, 2016: \n \nAsset Class Fixed income Equities Alternative investments Cash and cash equivalents \nTotal \n36 \n \nTarget Allocation \n25%-45% 55%-75% \n0%-5%  \n100% \n \n(continued) \n \n Financial Section \nNotes to Financial Statements \nApproximately 13.8% of the investments held in trust for pension benefits are invested in debt securities of the U.S. government. The System has no investments in any one organization, other than those issued by the U.S. government and its instrumentalities that represent 5% or more of the System's net position restricted for pensions and OPEB. \nFor the year ended June 30, 2016, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was (7.23)%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. \n(e) Capital Assets Capital assets, including software development costs, are stated at cost less accumulated depreciation. The capitalization thresholds are $100,000 for buildings and building improvements and $5,000 for equipment and vehicles. Depreciation on capital assets is computed using the straight-line method over estimated useful lives of five to forty years. Depreciation expense is included in administrative expenses. Maintenance and repairs are charged to administrative expenses when incurred. When assets are retired or otherwise disposed of, the costs and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in the combining statement of changes in fiduciary net position in the period of disposal. \n(f) Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of net position and changes therein. Actual results could differ from those estimates. \n(g) New Accounting Pronouncements During fiscal year 2016, the System adopted the provisions of GASB Statement No. 72, Fair Value Measurement and Application. This Statement addresses accounting and financial reporting issues related to fair value measurements and requires disclosures to be made about fair value measurements, the level of fair value hierarchy, and valuation techniques. See note 4(b) for disclosures related to GASB Statement No. 72. \nDuring fiscal year 2016, the System adopted the provisions of GASB Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets that are Not Within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68. The objective is to improve the usefulness of information about pensions included in external financial reports for making decisions and assessing accountability. The implementation of GASB Statement No. 73 did not impact the recorded amounts in the financial statements. However, this statement did provide additional clarification on the reporting requirements of the System's required supplementary information. \nDuring fiscal year 2016, the System adopted the provisions of GASB Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments which supersedes GASB Statement 55, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. The objective of this Statement is to identify the hierarchy of generally accepted accounting principles (GAAP) used to prepare financial statements for the purpose of improving the usefulness and comparability of those statements among governments. The implementation of GASB Statement No. 76 did not impact the recorded amounts in the financial statements. \nDuring fiscal year 2016, the System adopted the provisions of GASB Statement No. 79, Certain External Investment Pools and Pool Participants. The objective of this Statement is to establish criteria for an external investment pool to qualify for making the election to measure all of its investments at amortized cost for financial statement reporting. There are no applicable reporting requirements for the System in fiscal year 2016. \n(continued) 37 \n \n Financial Section \nNotes to Financial Statements \n(h) Reclassification Certain reclassifications to the 2015 amounts have been reclassified to conform to the current year presentation. \n(4) Investment Program \nThe System maintains sufficient cash to meet its immediate liquidity needs. Cash not immediately needed is invested as directed by the Board of Trustees. All investments are held by agent custodial banks in the name of the System. State statutes and the System's investment policy authorize the System to invest in a variety of short-term and long-term securities as follows: \n(a) Cash and Cash Equivalents Custodial credit risk is the risk that in the event a depository institution or counterparty fails, the System would not be able to recover the value of its deposits or investments. The System does not have a formal policy relating to custodial credit risk. The carrying amount of the System's deposits totaled $222,341,286 at June 30, 2016 with actual bank balances of $221,541,190. The System's bank balances of $192,749,710 are fully insured through the Federal Deposit Insurance Corporation, an independent agency of the U.S. government. The remaining bank deposits of $28,791,480 are uninsured and uncollateralized. The System's noncash investments are held in the System's name and are not exposed to custodial credit risk. \nShort term securities authorized but not currently used, are as follows:  Repurchase and reverse repurchase agreements, whereby the System and a broker exchange cash for direct \nobligations 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. \n U.S. Treasury obligations. \n 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. \n 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. \nInvestments in commercial paper or master notes are limited to no more than $500 million in any one name. \n(b) Investments Fixed income investments, managed by the Division of Investment Services (the Division), are authorized in the following instruments:  U.S. and foreign government obligations. At June 30, 2016, the System held U.S. Treasury bonds of $2,223,199,350 and international government bonds of $77,266,420. \n Obligations unconditionally guaranteed by agencies of the U.S. government. At June 30, 2016, the System did not hold agency bonds. \n U.S. and foreign corporate obligations. At June 30, 2016, the System held U.S. corporate bonds of $2,257,446,930 and international corporate bonds of $174,512,200. \n Private placements are authorized under the same general restrictions applicable to corporate bonds. At June 30, 2016, the System did not hold private placements. \n(continued) 38 \n \n Financial Section \nNotes to Financial Statements \nMortgage investments are authorized to the extent that they are secured by first mortgages on improved real property located in the State of Georgia. \nEquity securities are also authorized (in statutes) for investment as a complement to the System's fixed-income portfolio and as a long-term inflation hedge. By statute, no more than 75% of the total invested assets on a historical cost basis may be placed in equities. Equity holdings in any one corporation may not exceed 5% of the outstanding equity of the issuing corporation. The equity portfolio is managed by the Division, in conjunction with independent advisors. Buy/sell decisions are based on securities meeting rating criteria established by the Board of Trustees, in-house research considering such matters as yield, growth, and sales statistics, and analysis of independent market research. Equity trades are approved and executed by the Division's staff. Common stocks eligible for investment are approved by the Investment Committee of the Board of Trustees before being placed on an approved list. \nEquity investments are authorized in the following instruments:  Domestic equities are those securities considered by O.C.G.A. to be domiciled in the United States. At June 30, 2016, \nthe System held domestic equities of $7,662,885,209. \n International equities, including American Depository Receipts (ADR), are not considered by the O.C.G.A. to be domiciled in the United States. At June 30, 2016, the System held international equities of $560,489,939 and ADRs of $1,770,528,145. \n Alternative investments are authorized (in statute) to provide portfolio diversification and to enhance the risk-adjusted rate of return for the retirement fund that benefits the members of the System. By statute, the allocation to alternative investments shall not, in the aggregate, exceed 5% of the System's plan assets at any time. Further, in any calendar year, new commitments to alternative investments shall not, in the aggregate exceed 1% of the System's plan assets until the first occurrence that 4% of the assets have been invested, at which time there shall be no limit on the percentage of commitments that may be made in any calendar year, subject to compliance with other provisions of the statute. At June 30, 2016, the System held private equity investments of $93,885,264. \nThe State of Georgia Employee's Deferred Compensation Group Trust (Master Trust) invests in various mutual funds, common collective trust funds, and separate accounts, as selected by participants. Each participant is allowed to select and invest contributions into investment options that own one or more commingled funds, as authorized by the Board of Trustees. Participants may also contribute to a self-directed brokerage account that offers investments in various mutual funds and equities. At June 30, 2016, the deferred compensation plans held commingled funds of $1,220,983,650, mutual funds of $5,084,305, domestic equities of $10,319,627, and international equities of $1,217,435. \nSubstantially all of the investments of ERS, PSERS, LRS, GJRS, GMPF, SBF, SEAD-Active, and SEAD-OPEB are pooled into one common investment fund. Units in the pooled common investment fund are allocated to the respective plans, based upon the cost of assets contributed, and additional units are allocated to the participating plans, based on the market value of the pooled common investment fund at the date of contribution. Net income of the pooled common investment fund is allocated monthly to the participating plans, based upon the number of units outstanding during the month. \n(continued) 39 \n \n Financial Section \n \nNotes to Financial Statements \nThe units and fair value of each plan's equity in the pooled common investment fund at June 30, 2016 were as follows (dollars in thousands): \n \nEmployees' Retirement System Public School Employees Retirement System Legislative Retirement System Georgia Judicial Retirement System State Employees' Assurance Department - Active State Employees' Assurance Department - OPEB Survivors Benefit Fund Georgia Military Pension Fund \n \nFair Value \n$ 12,324,526 804,666 31,088 401,705 240,948 \n1,028,448 120,871 17,714 \n$ 14,969,966 \n \nUnits \n3,059,682 199,766 7,718 99,727 59,818 255,322 30,007 4,398 \n3,716,438 \n \nFair Value Measurements. The System categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the inputs used in valuation and gives the highest priority to unadjusted quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the hierarchy is based on whether the significant inputs into the valuations are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest level, Level 1, is given to unadjusted quoted prices in active markets and the lowest level, Level 3, to unobservable inputs. \nLevel 1  Valuations based on unadjusted quoted prices for identical instruments in active markets that the System has the ability to access. \nLevel 2  Valuations based on quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable. \nLevel 3  Valuations based on inputs that are unobservable and significant to the overall fair value measurement. \nThe System also has investments held through limited partnerships for which fair value is estimated using the NAV reported by the investment manager as a practical expedient to fair value. Such investments have not been categorized within the fair value hierarchy. \nIn instances where inputs used to measure fair value fall into different levels in the fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The System's assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each investment. The table on the following page shows the fair value leveling of the System's investments. \n \n(continued) 40 \n \n Notes to Financial Statements \n \nFinancial Section \nFair Value Measures Using \n \nInvestments by Fair Value Level \n \nQuoted prices in active \nmarkets for identical assets \nLevel 1 \n \nEquities: Domestic International \nObligations: Domestic: U.S. Treasuries Corporate bonds International: Governments Corporate bonds \nMutual funds Commingled funds \n \n$ 7,673,126,109 2,315,971,591 \n2,181,601,250 -- \n-- -- 5,084,305 68,015,131 \n \nSignificant other \nobservable inputs Level 2 \n-- 16,263,928 \n41,598,100 2,257,446,930 \n77,266,420 174,512,200 \n-- 1,152,968,519 \n \nSignificant unobservable \ninputs Level 3 \n78,727 -- \n-- -- \n-- -- -- -- \n \nTotal \n7,673,204,836 2,332,235,519 \n2,223,199,350 2,257,446,930 \n77,266,420 174,512,200 \n5,084,305 1,220,983,650 \n \nTotal investments by fair value level \n \n$ 12,243,798,386 3,720,056,097 \n \nInvestments measured at (NAV)(a) Private equity funds \n \nTotal investments \n \n78,727 \n \n15,963,933,210 \n \n93,885,264 $ 16,057,818,474 \n \n(a) Certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. \n \nEquity securities classified in Level 1 are valued using prices quoted in active markets for those securities. Equity securities classified in Level 3 are valued using third party valuations not currently observable in the market. \nDebt securities classified in Level 1 are valued using prices quoted in active markets. Debt securities classified in Level 2 are valued using either a bid evaluation or a matrix pricing technique. Bid evaluations may include market quotations, yields, maturities, call features and ratings. Matrix pricing is used to value securities based on the securities' relationship to benchmark quoted prices. These securities have nonproprietary information that was readily available to market participants, from multiple independent sources, which are known to be actively involved in the market. \nMutual funds and commingled funds classified in Level 1 are valued using prices quoted in active markets for those investment types. Commingled funds classified in Level 2 are valued using observable underlying inputs that are market corroborated. \n \n(continued) 41 \n \n Financial Section \n \nNotes to Financial Statements \nPrivate equity funds are valued as described below. \n \nPrivate Equity Funds \n \nInvestments measured at \nNAV \n \n$ \n \n93,885,264 \n \nUnfunded commitments \n195,175,510 \n \nRedemption frequency (if currently eligible) \nNot eligible \n \nRedemption notice period \nN/A \n \nInvestments in privately held limited partnerships are valued using the NAV provided by the general partner as of March 31 of each fiscal year, adjusted by the System for cash flows through June 30. The quarterly values of the partnership investments provided from the general partner are reviewed by the System to determine if any adjustments are necessary. The types of partnership strategies held include growth equity, leveraged buyouts and mezzanine debt. Three of the thirteen partnerships held are secondary investments and are in or nearing the wind-up phase of the fund. Excluding a debt partnership with a remaining term of approximately two years, the remaining investments typically have an approximate life of eight  ten years. These investments are considered illiquid since the nature of these private investments prohibits redemption with the fund; instead, distributions are received from the general partner through liquidation of the underlying assets of the fund. The System currently has no plans to sell any of the investments prior to their liquidation resulting in these assets being carried at the NAV estimated by the general partner and adjusted for second quarter cash flows by the System. \nCredit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations to the Employees' Retirement System. State law limits investments to investment grade securities. \nIt is the System's investment policy to require that the bond portfolio be of high quality and chosen with respect to maturity ranges, coupon levels, refunding characteristics and marketability. The System's policy is to require that new purchases of bonds be restricted to high grade bonds rated no lower than \"A\" by any nationally recognized statistical rating organization. If a bond is subsequently downgraded to a rating below \"A\", it is placed on a watch list. The System holds one bond which was downgraded to a rating below \"A\". Obligations of the U.S. government or obligations explicitly guaranteed by the U.S. government are not considered to have credit risk and do not require disclosure of credit quality. The quality ratings of investments in fixed income securities as described by Standard \u0026 Poor's and by Moody's Investors Service, which are nationally recognized statistical rating organizations, at June 30, 2016 are shown in the chart on the following page: \n \n(continued) 42 \n \n Financial Section \n \nNotes to Financial Statements \n \nQuality Ratings of Fixed Income Investments Held at June 30, 2016 \n \nInvestment Type Domestic obligations: \nU.S. Treasuries Corporates \nTotal Corporates International obligations: \nGovernments Corporates \nTotal Corporates Total Fixed Income Investments \n \nStandard \u0026 Poor's/ Moody's \nQuality Rating \n \nJune 30,2016 Fair Value \n \nAAA/Aaa AA/Aaa AA/Aa \nA/Aa AA/A A/A BBB/Baa \n \n$ 2,223,199,350 \n201,737,130 200,927,080 259,330,440 \n82,543,230 483,142,960 952,642,890 \n77,123,200 \n2,257,446,930 \n \nA/Aa \nAA/Aa A/Aa \n \n77,266,420 \n76,855,240 97,656,960 \n174,512,200 $ 4,732,424,900 \n \nMutual funds, commingled funds, and various equities of the deferred compensation plans are not considered to have credit risk and do not require disclosure of credit risk rating. \nConcentration of Credit Risk. Concentration of credit risk is the risk of loss that may be attributed to the magnitude of a government's investment in a single issue. At June 30, 2016, the System did not have debt or equity investments in any one organization, other than those issued or guaranteed by the U. S. Government or its agencies, which represented greater than 5% of plan net position. \nInterest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. While the System has no formal interest rate risk policy, active management of the bond portfolio incorporates interest rate risk to generate improved returns. This risk is managed within the portfolio using the effective duration method. This method is widely used in the management of fixed income portfolios and quantifies to a much greater degree the sensitivity to interest rate changes when analyzing a bond portfolio with call options, prepayment provisions, and any other cash flows. Effective duration makes assumptions regarding the most likely timing and amounts of variable cash flows and is best utilized to gauge the effect of a change in interest rates on the fair value of a portfolio. It is believed that the reporting of effective duration found in the table on the following page quantifies to the fullest extent possible the interest rate risk of the System's fixed income assets. \n \n(continued) 43 \n \n Financial Section \n \nNotes to Financial Statements \n \nEffective Duration of Fixed Income Assets \n \nFixed Income Type \nDomestic obligations: U.S. Treasuries Corporates \nInternational obligations: Governments Corporates \nTotal \n \nFair Value June 30, 2016 \n \nPercent of All Fixed Income Assets \n \nEffective Duration (Years) \n \n$ 2,223,199,350 2,257,446,930 \n77,266,420 174,512,200 $ 4,732,424,900 \n \n47.0 % \n \n6.1 \n \n47.7 \n \n3.5 \n \n1.6 \n \n1.3 \n \n3.7 \n \n1.5 \n \n100.0 % \n \n4.6 \n \nMutual funds, commingled funds and various equities of the deferred compensation plans are not considered to have interest rate risk and do not require disclosure of interest rate risk. \nForeign Currency Risk. Foreign currency risk is the risk that changes in exchange rates will adversely impact the fair value of an investment. The System's currency risk exposures, or exchange rate risks, primarily reside within the System's international equity investment holdings. The System's foreign exchange risk management policy is to minimize risk and protect the investments from negative impact by hedging foreign currency exposures with foreign exchange instruments when market conditions and circumstances are deemed appropriate. As of June 30, 2016, the System's exposure to foreign currency risk in U.S. Dollars is highlighted in the table on the following page: \n \n44 \n \n(continued) \n \n Notes to Financial Statements \n \nFinancial Section \n \nInternational Investment Securities at Fair Value as of June 30, 2016 \n \nCurrency \nAustralian Dollar Brazilian Real British Pound Canadian Dollar Czech Krone Danish Krone Euro Hong Kong Dollar Indonesian Rupiah Japanese Yen Malaysian Ringgit Mexican Peso New Taiwan Dollar Philippine Peso Polish Zloty Singapore Dollar South African Rand South Korean Won Swedish Krona Swiss Franc Thailand Baht \nTotal Holdings Subject to Foreign Currency Risk \n \nEquities \n$ 28,346,870 15,742,601 64,127,331 5,972,000 425,552 10,194,781 67,861,200 36,711,100 5,612,989 \n105,426,652 9,314,555 8,996,447 \n35,071,268 5,439,930 2,379,753 \n14,768,950 29,445,741 54,259,633 29,347,199 14,785,191 16,260,196 \n560,489,939 \n \nFixed Income \n-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- \n-- \n \nInvestment Securities Payable in U.S. Dollars \n \n1,770,528,145 \n \n251,778,620 \n \nTotal International Investment Securities - at Fair Value \n \n$ 2,331,018,084 \n \n251,778,620 \n \nTotal \n28,346,870 15,742,601 64,127,331 \n5,972,000 425,552 \n10,194,781 67,861,200 36,711,100 \n5,612,989 105,426,652 \n9,314,555 8,996,447 35,071,268 5,439,930 2,379,753 14,768,950 29,445,741 54,259,633 29,347,199 14,785,191 16,260,196 \n560,489,939 \n2,022,306,765 \n2,582,796,704 \n \n(5) Securities Lending Program \nState statutes and Board of Trustees policies permit the System to lend its securities to broker-dealers with a simultaneous agreement to return the collateral for the same securities in the future. The System is presently involved in a securities lending program with major brokerage firms. The System lends equity and fixed income securities for varying terms and receives a fee based on the loaned securities' value. The System reports the gross loan fee income earned as investment income on the Combining Statement of Changes in Fiduciary Net Position. During a loan, the System continues to receive dividends and interest as the owner of the loaned securities. The brokerage firms pledge collateral securities consisting of U.S. government and agency securities, mortgage-backed securities issued by a U.S. government agency, corporate bonds, and equities. The collateral value must be equal to at least 102% to 109% of the loaned securities' value, depending on the type of collateral security. \nSecurities loaned totaled $3,298,466,014 at fair value at June 30, 2016. The collateral value was equal to 105.4% of the loaned securities' value at June 30, 2016. The System's lending collateral was held in the System's name by the tri-party custodian. \n(continued) 45 \n \n Financial Section \n \nNotes to Financial Statements \n \nLoaned securities are included in the accompanying Combining Statement of Fiduciary Net Position since the System maintains ownership. The related collateral securities are not recorded as assets on the System's Combining Statement of Fiduciary Net Position, and a corresponding liability is not recorded, since the System is deemed not to have the ability to pledge or trade the collateral securities. The System is deemed not to have the ability to pledge or sell the collateral securities, since the System's lending contracts do not address whether the lender can pledge or sell the collateral securities without a borrower default, the System has not previously demonstrated that ability, and there are no indications of the System's ability to pledge or sell the collateral securities. \n \n(6) Capital Assets \n \nThe following is a summary of capital assets and depreciation information as of and for the year ended June 30, 2016: \n \nCapital assets: Land Building Equipment Vehicles Computer software \n \nBalance at June 30, 2015 \n \nAdditions \n \nBalance at Disposals June 30, 2016 \n \n$ 4,320,718 2,800,000 2,638,686 13,382 \n14,344,609 \n24,117,395 \n \n21,069  \n399,869   \n420,938 \n \n  (32,132)   \n(32,132) \n \n4,341,787 2,800,000 3,006,423 \n13,382 14,344,609 \n24,506,201 \n \nAccumulated depreciation for: Building Equipment Vehicles Computer software \nCapital assets, net \n \n(770,000) (2,139,481) \n(13,382) (14,344,609) \n(17,267,472) \n$ 6,849,923 \n \n(70,000) (249,729) \n  \n(319,729) \n101,209 \n \n 23,982 \n  \n23,982 \n(8,150) \n \n(840,000) (2,365,228) \n(13,382) (14,344,609) \n(17,563,219) \n6,942,982 \n \nDuring fiscal year 2016, the System did not experience any capital asset impairment loss with respect to the provisions of GASB Statement No. 42, Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries. \n \n(7) Commitments \n \nAs of June 30, 2016, the System had committed to fund certain private equity partnerships for a total capital commitment of $300,750,000. Of this amount, $195,175,510 remained unfunded and is not recorded on the System's Combining Statement of Fiduciary Net Position. \n \n(8) Net Pension Liability of Employers and Nonemployers - ERS \n \nThe components of the net pension liability of the participating employers and nonemployers at June 30, 2016 were as follows (dollars in thousands): \n \nTotal pension liability Plan fiduciary net position \n \n$ \n \n17,103,987 \n \n12,373,567 \n \nEmployers' and nonemployers' net pension liability \n \n$ \n \n4,730,420 \n \nPlan fiduciary net position as a percentage of the total pension liability \n \n72.34% \n \n46 \n \n(continued) \n \n Financial Section \n \nNotes to Financial Statements \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2015, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases Investment rate of return \n \n2.75% 3.25 - 7.00%, including inflation 7.50%, net of pension plan investment expense, including inflation \n \nPost-Retirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries projection scale BB and set forward 2 years for both males and females for service retirements and dependent beneficiaries. The RP-2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society of Actuaries projection scale BB and set back 7 years for males and set forward 3 years for females was used for death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \n \nThe actuarial assumptions used in the June 30, 2015 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \n \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset Class \nFixed income Domestic large equities Domestic mid equities Domestic small equities International developed market stocks International emerging market stocks Alternatives \nTotal \n \nTarget Allocation \n30.00 % 37.20 \n3.40 1.40 17.80 5.20 5.00 \n100.00 % \n \nLong-term Expected Real Rate of Return* \n(0.50) % 9.00 12.00 13.50 8.00 12.00 10.50 \n \n* Rates shown are net of inflation \nDiscount rate: The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \n(continued) 47 \n \n Financial Section \n \nNotes to Financial Statements \nSensitivity of the net pension liability to changes in the discount rate: The following presents the net pension liability, calculated using the discount rate of 7.50%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate (dollars in thousands): \n \nEmployers' and nonemployers' net pension liability \n \n1% Decrease (6.50%) \n$ 6,410,596 \n \nCurrent Discount \nRate (7.50%) \n4,730,420 \n \n1% Increase (8.50%) \n3,298,576 \n \nActuarial valuation date: June 30, 2015 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2016 using standard roll-forward techniques. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n \n(9) Net Pension Liability of Employers and Nonemployers  PSERS \n \nThe components of the net pension liability of the participating employers and nonemployers at June 30, 2016 were as follows (dollars in thousands): \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployers' and nonemployers' net pension liability \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \n992,292 803,775 \n188,517 \n81.00% \n \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2015, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases Investment rate of return \n \n2.75% n/a 7.50%, net of pension plan investment expense, including inflation \n \nPost-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirement and for dependent beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward 5 years for both males and females) was used for death after disability retirement. Rates of mortality in active service were based on the RP2000 Employee Mortality Table projected to 2025 with projection scale BB. \n \nThe actuarial assumptions used in the June 30, 2015 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \n \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the table on the following page: \n \n(continued) 48 \n \n Financial Section \n \nNotes to Financial Statements \n \nAsset Class \nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks Alternatives \nTotal \n \nTarget Allocation \n30.00 % 37.20 \n3.40 1.40 17.80 5.20 5.00 \n100.00 % \n \nLong-term Expected Real Rate of Return* \n(0.50) % 9.00 12.00 13.50 8.00 12.00 10.50 \n \n* Rates shown are net of inflation. \nDiscount rate: The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \nSensitivity of the net pension liability to changes in the discount rate: The following presents the net pension liability, calculated using the discount rate of 7.50%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate (dollars in thousands): \n \nEmployers' and nonemployers' net pension liability \n \n1% Decrease (6.50%) \n \n$ \n \n299,133 \n \nCurrent Discount \nRate (7.50%) \n188,517 \n \n1% Increase (8.50%) \n95,548 \n \nActuarial valuation date: June 30, 2015 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2016 using standard roll-forward techniques. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n \n(10) Net Pension Liability of Employer  LRS \n \nThe components of the net pension liability of the participating employer at June 30, 2016 were as follows (dollars in thousands): \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployer's net pension liability (asset) \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \n26,142 30,975 \n(4,833) \n118.49% \n \n(continued) 49 \n \n Financial Section \n \nNotes to Financial Statements \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2015, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases Investment rate of return \n \n2.75% None 7.50%, net of pension plan investment expense, including inflation \n \nPost-retirement mortality rates were based on the RP-2000 Combined Mortality Table projected to 2025 with projection scale BB (set forward 2 years for both males and females) for the period after service retirement. The RP-2000 Employee Mortality Table projected to 2025 using projection scale BB was used for deaths in active service. \n \nThe actuarial assumptions used in the June 30, 2015 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \n \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset Class \nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks Alternatives \nTotal \n* Rates shown are net of inflation. \n \nTarget Allocation \n30.00 % 37.20 \n3.40 1.40 17.80 5.20 5.00 \n100.00 % \n \nLong-term Expected Real Rate of Return* \n(0.50) % 9.00 12.00 13.50 8.00 12.00 10.50 \n \nDiscount rate: The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \nSensitivity of the net pension liability to changes in the discount rate: The following presents the net pension liability, calculated using the discount rate of 7.50%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate (dollars in thousands): \n \nEmployers' and nonemployers' net pension liability (asset) \n \n1% Decrease (6.50%) \n \n$ \n \n(2,380) \n \nCurrent Discount \nRate (7.50%) \n(4,833) \n \n1% Increase (8.50%) \n(6,902) \n \n(continued) 50 \n \n Financial Section \n \nNotes to Financial Statements \nActuarial valuation date: June 30, 2015 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2016 using standard roll-forward techniques. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n \n(11) Net Pension Liability of Employers and Nonemployers  GJRS \n \nThe components of the net pension liability of the participating employers and nonemployers at June 30, 2016 were as follows (dollars in thousands): \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployer's net pension liability (asset) \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \n368,669 403,011 \n(34,342) \n109.32% \n \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2015, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases Investment rate of return \n \n2.75% 4.50%, including inflation 7.50%, net of pension plan investment expense, including inflation \n \nMortality rates were based on the RP-2000 Combined Mortality Table projected to 2025 with projection scale BB and set forward 2 years for both males and females for the period after retirement and for dependent beneficiaries. For the period after disability retirement, the RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB and set back 7 years for males and set forward 3 year for females is used. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \n \nThe actuarial assumptions used in the June 30, 2015 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \n \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset Class \nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks Alternatives \nTotal \n* Rates shown are net of inflation. \n \nTarget Allocation \n30.00 % 37.20 \n3.40 1.40 17.80 5.20 5.00 \n100.00 % \n \nLong-term Expected Real Rate of Return* \n(0.50) % 9.00 12.00 13.50 8.00 12.00 10.50 \n \n(continued) 51 \n \n Financial Section \n \nNotes to Financial Statements \nDiscount rate: The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \nSensitivity of the net pension liability to changes in the discount rate: The following presents the net pension liability, calculated using the discount rate of 7.50%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate (dollars in thousands): \n \nEmployers' and nonemployers' net pension liability (asset) \n \n1% Decrease (6.50%) \n \n$ \n \n1,701 \n \nCurrent Discount \nRate (7.50%) \n(34,342) \n \n1% Increase (8.50%) \n(65,684) \n \nActuarial valuation date: June 30, 2015 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2016 using standard roll-forward techniques. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n \n(12) Net Pension Liability of Employer  GMPF \n \nThe components of the net pension liability of the participating employer at June 30, 2016 were as follows (dollars in thousands): \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployer's net pension liability (asset) \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \n36,950 17,717 \n19,233 \n47.95% \n \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2015, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases Investment rate of return \n \n2.75% n/a 7.50%, net of pension plan investment expense, including inflation \n \nPost-retirement mortality rates were based on the RP-2000 Combined Mortality Table projected to 2025 with projection scale BB (set forward 2 years for both males and females) for the period after service retirement. The RP-2000 Employee Mortality Table projected to 2025 using projection scale BB was used for deaths in active service. \n \nThe actuarial assumptions used in the June 30, 2015 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \n \n(continued) 52 \n \n Financial Section \n \nNotes to Financial Statements \n \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset Class \nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks Alternatives \n \nTarget Allocation \n30.00 % 37.20 \n3.40 1.40 17.80 5.20 5.00 \n \nLong-term Expected Real Rate of Return* \n(0.50) % 9.00 12.00 13.50 8.00 12.00 10.50 \n \nTotal * Rates shown are net of inflation. \n \n100.00 % \n \nDiscount rate: The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \nSensitivity of the net pension liability to changes in the discount rate: The following presents the net pension liability, calculated using the discount rate of 7.50%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate (dollars in thousands): \n \nEmployers' net pension liability \n \n1% Decrease (6.50%) \n \n$ \n \n24,686 \n \nCurrent Discount \nRate (7.50%) \n19,233 \n \n1% Increase (8.50%) \n14,804 \n \nActuarial valuation date: June 30, 2015 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2016 using standard roll-forward techniques. The roll-forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n \n(continued) 53 \n \n Financial Section \n \nNotes to Financial Statements (13) Funded Status and Funding Progress - Defined Benefit OPEB Plans \n \nThe funded status of the SEAD-Active and SEAD-OPEB plans as of June 30, 2015, the most recent actuarial valuation date, are as follows (dollar amounts in thousands): \n \nSEAD - Active SEAD - OPEB \n \nActuarial Value of Plan Assets \n(a) \n \n$ \n \n240,677 \n \n1,046,559 \n \nActuarial Accrued Liability (AAL) Projected Unit Credit \n(b) \n21,723 769,747 \n \nUnfunded AAL/ (Funded Excess) (b-a) \n(218,954) (276,812) \n \nFunded Ratio (a/b) \n1,107.9 % \n136.0 \n \nAnnual Covered Payroll \n(c) \n$ 1,521,741 1,521,741 \n \nUnfunded AAL/ (Funded Excess) as Percentage of Covered Payroll \n[(b-a)/c] \n(14.4) % \n(18.2) \n \nThe SBF does not have an actuarial valuation as there are no funding requirements and no liabilities related to the fund. \n \nThe schedules of funding progress, presented as required supplementary information (RSI) following the notes to the financial statements, present multi-year trend information about whether the actuarial values of plan assets are increasing or decreasing over time relative to the AALs for benefits. \nAdditional information as of the latest actuarial valuation follows: \n \nValuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method \nActuarial assumptions: Investment rate of return Projected salary increases: ERS GJRS LRS \nPost retirement cost-of-living adjustment \n1 Includes inflation rate of 2.75%. \n \nSEAD-Active \nJune 30, 2015 Projected Unit Credit Level dollar, open N/A Market value of assets \n \nSEAD-OPEB \nJune 30, 2015 Projected Unit Credit Level dollar, open N/A Market value of assets \n \n7.50% \n3.25-7.00% 4.50% -- N/A \n \n7.50% \n3.25-7.00% 4.50% -- N/A \n \n54 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) Schedules of Employers' and Nonemployers' Contributions - Defined Benefit Pension Plans \nFor year ended June 30 (In thousands) \n(continued) 55 \n \nEmployees' Retirement System1 \nPublic School Employees Retirement System2 \nLegislative Retirement System3 \n \nYear Ended \n6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 \n6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 \n6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 \n \nActuarially Determined Contribution \n(a) \n \n$ \n \n270,141 \n \n286,256 \n \n282,103 \n \n263,064 \n \n261,132 \n \n273,623 \n \n358,376 \n \n428,982 \n \n517,220 \n \n595,124 \n \n6,490 2,869 5,529 5,530 7,509 15,884 24,829 27,160 28,461 28,580 \n \n-- -- -- -- -- -- -- -- -- -- \n \nContributions in relation to the actuarially determined contribution \n(b) \n270,141 286,256 281,206 263,064 261,132 274,034 358,992 429,752 518,163 595,566 \n \nContribution deficiency (excess) \n(a-b) \n-- -- 897 -- -- (411) (616) (770) (943) (442) \n \n6,490 \n \n-- \n \n2,869 \n \n-- \n \n5,529 \n \n-- \n \n5,530 \n \n-- \n \n7,509 \n \n-- \n \n15,884 \n \n-- \n \n24,829 \n \n-- \n \n27,160 \n \n-- \n \n28,461 \n \n-- \n \n28,580 \n \n-- \n \n62 \n \n(62) \n \n73 \n \n(73) \n \n71 \n \n(71) \n \n75 \n \n(75) \n \n75 \n \n(75) \n \n76 \n \n(76) \n \n128 \n \n(128) \n \n45 \n \n(45) \n \n-- \n \n-- \n \n-- \n \n-- \n \nCovered employee \npayroll (c) \n2,680,972 2,809,199 2,674,155 2,571,042 2,486,780 2,414,884 2,335,773 2,335,773 2,353,225 2,390,457 \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \n \nContributions as a percentage \nof coveredemployee \npayroll (b/c) \n10.1 % 10.2 10.5 10.2 10.5 11.3 15.4 18.4 22.0 24.9 \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) Schedules of Employers' and Nonemployers' Contributions - Defined Benefit Pension Plans \nFor year ended June 30 (In thousands) \n56 \n \nGeorgia Judicial Retirement System \nGeorgia Military Pension Fund4 \n \nYear Ended \n6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 \n6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 \n \nActuarially Determined Contribution \n(a) \n \n$ \n \n1,778 \n \n2,395 \n \n1,703 \n \n2,600 \n \n1,932 \n \n2,083 \n \n2,279 \n \n2,375 \n \n4,261 \n \n7,623 \n \n1,005 1,103 1,323 1,434 1,282 1,521 1,703 1,892 1,893 1,990 \n \nContributions in relation to the actuarially determined contribution \n(b) \n \nContribution deficiency (excess) \n(a-b) \n \n1,778 \n \n-- \n \n2,395 \n \n-- \n \n1,703 \n \n-- \n \n2,600 \n \n-- \n \n1,932 \n \n-- \n \n2,083 \n \n-- \n \n2,279 \n \n-- \n \n2,375 \n \n-- \n \n4,261 \n \n-- \n \n7,623 \n \n-- \n \n1,005 \n \n-- \n \n1,103 \n \n-- \n \n1,323 \n \n-- \n \n1,434 \n \n-- \n \n1,282 \n \n-- \n \n1,521 \n \n-- \n \n1,703 \n \n-- \n \n1,892 \n \n-- \n \n1,893 \n \n-- \n \n1,990 \n \n-- \n \nCovered employee \npayroll (c) \n48,621 51,102 52,803 51,293 52,331 51,898 52,807 54,787 54,272 57,401 \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \n \nContributions as a percentage \nof coveredemployee \npayroll (b/c) \n3.7 % 4.7 3.2 5.1 3.7 4.0 4.3 4.3 7.9 13.3 \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \n \nThis data, except for annual covered payroll, was provided by the System's actuary. \n1 An employer group within ERS did not contribute the full actuarially determined contribution. This employer is making additional contributions to repay this shortfall. 2 No statistics regarding covered payroll are available. Contributions are not based upon members' salaries, but are simply $4 per member, per month, for nine months, each fiscal year if hired prior to July 1, 2012 and $10 per member, per month, for nine months, if hired after July 1, 2012. 3 The General Assembly of Georgia made contributions from 2007-2014 that were not required. 4 No statistics regarding covered payroll are available. Active and inactive plan member information is maintained by the Georgia Department of Defense. \nSee accompanying notes to required supplementary schedules and accompanying independent auditors' report. \n \n Financial Section \n \nRequired Supplementary Information (UNAUDITED) \nSchedules of Employers' and Nonemployers' Net Pension Liability and Related Ratios  Defined Benefit Pension Plans (In thousands) \n \nJune 30, 2016 June 30, 2015 June 30, 2014 \n \nEmployees' Retirement System: \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployers' and nonemployers' net pension liability \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \nCovered-employee payroll \n \n$ \n \nEmployers' and nonemployers' net pension liability as a percentage of covered-employee payroll \n \n17,103,937 12,373,567 \n4,730,370 \n72.34 % 2,390,457 \n197.89 % \n \n17,019,362 12,967,964 \n4,051,398 \n76.20 % 2,353,225 \n172.16 % \n \n17,042,149 13,291,531 \n3,750,618 \n77.99 % 2,335,773 \n160.57 % \n \nPublic School Employees Retirement System: \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployers' and nonemployers' net pension liability \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability Covered-employee payroll Employers' and nonemployers' net pension liability as a percentage of covered-employee payroll \n \n992,292 803,775 \n188,517 \n81.00 % n/a n/a \n \n946,200 823,150 \n123,050 \n87.00 % n/a n/a \n \n930,745 821,733 \n109,012 \n88.29 % n/a n/a \n \nLegislative Retirement System: Total pension liability Plan fiduciary net position \nEmployer's net pension liability (asset) \nPlan fiduciary net position as a percentage of the total pension liability Covered-employee payroll Employer's net pension liability (asset) as a percentage of covered-employee payroll \n \n$ \n \n26,142 \n \n30,975 \n \n$ \n \n(4,833) \n \n118.49 % n/a \nn/a \n \nGeorgia Judicial Retirement System: \n \nTotal pension liability \n \n$ \n \nPlan fiduciary net position \n \nEmployers' and nonemployers' net pension liability (asset) \n \n$ \n \nPlan fiduciary net position as a percentage of the total pension liability \n \nCovered-employee payroll \n \n$ \n \nEmployers' and nonemployers' net pension liability (asset) as a % of covered-employee payroll \n \n368,669 403,011 \n(34,342) \n109.32 % 57,401 (59.83) % \n \nGeorgia Military Pension Fund: Total pension liability Plan fiduciary net position \nEmployer's net pension liability \nPlan fiduciary net position as a percentage of the total pension liability Covered-employee payroll Employer's net pension liability as a percentage of covered-employee payroll \n \n$ \n \n36,950 \n \n17,717 \n \n$ \n \n19,233 \n \n47.95 % n/a \nn/a \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n25,271 32,359 (7,088) 128.05 % \nn/a n/a \n357,081 404,852 (47,771) \n113.38 % 54,272 (88.02) % \n33,343 16,712 16,631 \n50.12 % n/a n/a \n \n25,216 32,794 (7,578) 130.05 % \nn/a n/a \n350,443 400,790 (50,347) \n114.37 % 54,787 (91.90) % \n31,511 15,251 16,260 \n48.40 % n/a n/a \n \n57 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) \nSchedules of Changes in Employers' and Nonemployers' Net Pension Liability  Defined Benefit Pension Plans (In thousands) \n \nEmployees' Retirement System: Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions \nNet change in total pension liability \nTotal pension liability-beginning \nTotal pension liability-ending (a) \nPlan fiduciary net position: Contributions-employer Contributions-nonemployer Contributions-member Administrative expense allotment Net investment income Benefit payments Administrative expense Refunds of contributions Other \nNet change in plan fiduciary net position \nPlan fiduciary net position-beginning \nPlan fiduciary net position-ending (b) \nNet pension liability-ending (a)-(b) \n \nJune 30, 2016 June 30, 2015 June 30, 2014 \n \n$ \n \n143,043 \n \n1,225,650 \n \n-- \n \n(238) \n \n70,890 \n \n(1,347,633) \n \n(7,087) \n \n84,625 \n \n17,019,362 \n \n17,103,987 \n \n583,082 12,484 31,961 10 \n141,292 (1,347,633) \n(8,506) (7,087) \n-- \n(594,397) \n12,967,964 \n \n12,373,567 \n \n$ \n \n4,730,420 \n \n145,045 1,227,846 \n-- (53,950) \n-- (1,334,278) \n(7,450) \n(22,787) \n17,042,149 \n17,019,362 \n505,668 12,495 33,713 10 \n474,147 (1,334,278) \n(7,872) (7,450) \n-- \n(323,657) \n13,291,531 \n12,967,964 \n4,051,398 \n \n150,075 1,224,380 \n-- -- -- (1,305,998) (8,757) \n59,700 \n16,982,449 \n17,042,149 \n418,807 10,945 32,423 -- \n2,021,748 (1,305,998) \n(7,440) (8,757) \n-- \n1,161,728 \n12,129,803 \n13,291,531 \n3,750,618 \n \n(continued) 58 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) \nSchedules of Changes in Employers' and Nonemployers' Net Pension Liability  Defined Benefit Pension Plans (In thousands) \n \nPublic School Employees Retirement System: Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions \nNet change in total pension liability \nTotal pension liability-beginning \nTotal pension liability-ending (a) \nPlan fiduciary net position: Contributions-nonemployer Contributions-member Net investment income Benefit payments Administrative expense Refunds of contributions Other \nNet change in plan fiduciary net position \nPlan fiduciary net position-beginning \nPlan fiduciary net position-ending (b) \nNet pension liability-ending (a)-(b) \n \nJune 30, 2016 June 30, 2015 June 30, 2014 \n \n$ \n \n11,952 \n \n68,776 \n \n-- \n \n(9,483) \n \n33,215 \n \n(57,903) \n \n(465) \n \n46,092 \n \n946,200 \n \n992,292 \n \n28,580 1,925 9,809 \n(57,903) (1,321) (465) -- \n(19,375) \n823,150 \n \n803,775 \n \n$ \n \n188,517 \n \n12,088 67,652 \n-- (6,858) \n-- (56,972) \n(455) \n15,455 \n930,745 \n946,200 \n28,461 1,800 \n30,129 (56,972) \n(1,545) (456) -- \n1,417 \n821,733 \n823,150 \n123,050 \n \n11,049 66,143 \n-- -- -- (56,189) (514) \n20,489 \n910,256 \n930,745 \n27,160 1,659 \n123,799 (56,189) \n(1,450) (514) -- \n94,465 \n727,268 \n821,733 \n109,012 \n \n(continued) 59 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) \nSchedules of Changes in Employers' and Nonemployers' Net Pension Liability  Defined Benefit Pension Plans (In thousands) \n \nLegislative Retirement System: Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions \nNet change in total pension liability \nTotal pension liability-beginning \nTotal pension liability-ending (a) \nPlan fiduciary net position: Contributions-employer Contributions-member Net investment income Benefit payments Administrative expense Refunds of contributions Other \nNet change in plan fiduciary net position \nPlan fiduciary net position-beginning \nPlan fiduciary net position-ending (b) \nNet pension liability (asset)-ending (a)-(b) \n \nJune 30, 2016 June 30, 2015 June 30, 2014 \n \n$ \n \n331 \n \n1,829 \n \n-- \n \n(465) \n \n938 \n \n(1,724) \n \n(38) \n \n871 \n \n25,271 \n \n26,142 \n \n-- 328 363 (1,724) (313) (38) -- \n(1,384) \n32,359 \n \n30,975 \n \n$ \n \n(4,833) \n \n338 1,824 \n-- (325) \n-- (1,756) \n(26) \n55 \n25,216 \n25,271 \n-- 327 1,189 (1,756) (169) (26) -- \n(435) \n32,794 \n32,359 \n(7,088) \n \n344 1,799 \n-- -- -- (1,801) (30) \n312 \n24,904 \n25,216 \n45 282 4,969 (1,801) (152) (30) -- \n3,313 \n29,481 \n32,794 \n(7,578) \n \n(continued) 60 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) \nSchedules of Changes in Employers' and Nonemployers' Net Pension Liability  Defined Benefit Pension Plans (In thousands) \n \nGeorgia Judicial Retirement System: Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions \nNet change in total pension liability \nTotal pension liability-beginning \nTotal pension liability-ending (a) \nPlan fiduciary net position: Contributions-employer Contributions-nonemployer Contributions-member Net investment income Benefit payments Administrative expense Refunds of contributions Other \nNet change in plan fiduciary net position \nPlan fiduciary net position-beginning \nPlan fiduciary net position-ending (b) \nNet pension liability (asset)-ending (a)-(b) \n \nJune 30, 2016 June 30, 2015 June 30, 2014 \n \n$ \n \n12,713 \n \n26,058 \n \n-- \n \n(3,603) \n \n(4,308) \n \n(19,011) \n \n(261) \n \n11,588 \n \n357,081 \n \n368,669 \n \n4,754 2,869 5,507 5,055 (19,011) \n(754) (261) \n-- \n(1,841) \n404,852 \n \n403,011 \n \n$ \n \n(34,342) \n \n7,751 25,566 \n-- (7,542) \n-- (18,365) \n(772) \n6,638 \n350,443 \n357,081 \n2,696 1,564 5,061 14,697 (18,365) \n(819) (772) \n-- \n4,062 \n400,790 \n404,852 \n(47,771) \n \n7,584 24,530 \n-- -- -- (17,441) (22) \n14,651 \n335,792 \n350,443 \n1,373 1,002 4,731 60,012 (17,441) \n(754) (22) -- \n48,901 \n351,889 \n400,790 \n(50,347) \n \n(continued) 61 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) \nSchedules of Changes in Employers' and Nonemployers' Net Pension Liability  Defined Benefit Pension Plans (In thousands) \n \nGeorgia Military Pension Fund Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions \nNet change in total pension liability \nTotal pension liability-beginning \nTotal pension liability-ending (a) \nPlan fiduciary net position: Contributions-employer Contributions-member Net investment income Benefit payments Administrative expense Refunds of contributions Other \nNet change in plan fiduciary net position \nPlan fiduciary net position-beginning \nPlan fiduciary net position-ending (b) \nNet pension liability-ending (a)-(b) \n \nJune 30, 2016 June 30, 2015 June 30, 2014 \n \n$ \n \n73 \n \n2,465 \n \n-- \n \n950 \n \n1,082 \n \n(963) \n \n-- \n \n3,607 \n \n33,343 \n \n36,950 \n \n1,990 -- 240 \n(963) (262) \n-- -- \n1,005 \n16,712 \n \n17,717 \n \n$ \n \n19,233 \n \n73 2,330 \n-- 326 \n-- (897) \n-- \n1,832 \n31,511 \n33,343 \n1,893 -- \n585 (896) (121) \n-- -- \n1,461 \n15,251 \n16,712 \n16,631 \n \n73 2,223 \n-- -- -- (841) -- \n1,455 \n30,056 \n31,511 \n1,892 -- \n2,179 (841) (110) -- -- \n3,120 \n12,131 \n15,251 \n16,260 \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedules and accompanying independent auditors' report. \n \n62 \n \n Financial Section \n \nRequired Supplementary Information (UNAUDITED) \nSchedule of Investment Returns For the year ended June 30, 2016 \n \n2016 \n \nPooled Investment Fund: Annual money-weighted rate of return, net of investment expense \n \n(7.23) % \n \nSchedule is intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors' report. \n \n2015 \n(5.23) % \n \n2014 \n(5.95) % \n \n63 \n \n Financial Section \nRequired Supplementary Information (UNAUDITED) Schedules of Funding Progress - Defined Benefit OPEB Plans \nJune 30, 2016 (In thousands) \n64 \n \nState Employees' Assurance Department-Active State Employees' Assurance Department-OPEB \n \nActuarial valuation \ndate \n6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 \n6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 \n \nActuarial value of plan assets \n(a) \n \n$ \n \n156,132 \n \n184,783 \n \n183,390 \n \n204,779 \n \n235,358 \n \n240,677 \n \n680,449 807,893 818,284 907,831 1,037,901 1,046,559 \n \nActuarial accrued liability (AAL) projected unit credit \n(b) \n40,523 40,145 39,317 37,512 35,877 21,723 \n691,001 678,421 704,617 754,786 788,020 769,747 \n \nUnfunded AAL/ (funded excess) \n(b-a) \n(115,609) (144,638) (144,073) (167,267) (199,481) (218,954) \n10,552 (129,472) (113,667) (153,045) (249,881) (276,812) \n \nFunded ratio (a/b) \n385.3 % 460.3 466.4 545.9 656.0 1,107.9 \n98.5 119.1 116.1 120.3 131.7 136.0 \n \nAnnual covered payroll \n(c) \n$ 2,401,974 2,166,982 1,962,800 1,767,052 1,628,712 1,521,741 \n2,401,974 2,166,982 1,962,800 1,767,052 1,628,712 1,521,741 \n \nUnfunded AAL/ (funded excess) as percentage of covered payroll \n[(b-a)/c] \n(4.8) % (6.7) (7.3) (9.5) (12.2) (14.4) \n0.4 (6.0) (5.8) (8.7) (15.3) (18.2) \n \nThis data, except for annual covered payroll, was provided by the System's actuary. The SBF does not obtain an actuarial valuation as there are no funding requirements or liabilities related to the fund. See accompanying notes to required supplementary schedules and accompanying independent auditors' report. \n \n Financial Section \n \nRequired Supplementary Information (UNAUDITED) \n \nSchedules of Employer Contributions-Defined Benefit OPEB Plans June 30, 2016 (In thousands) \n \nYear ended June 30 \n \nState annual required \ncontribution \n \nPercentage contributed \n \nState Employees' Assurance Department-Active State Employees' Assurance Department-OPEB \n \n2010 2011 2012 2013 2014 2015 \n2010 2011 20121 20131 2014 2015 \n \n$ \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- -- 12,724 5,009 -- -- \n \nN/A N/A N/A N/A N/A N/A \nN/A N/A 100.0 % 100.0 % N/A N/A \n \nThis data was provided by the System's actuary. \nThere are no required contributions to the SBF. 1 During fiscal year 2012, in lieu of a required employer contribution, $12,724,000 was transferred from the Survivors Benefit Fund to SEAD-OPEB. During fiscal year 2013, in lieu of a required employer contribution, $5,009,000 was transferred from the Survivors Benefit Fund. \nSee accompanying notes to required supplementary schedules and accompanying independent auditors' report. \n \n65 \n \n Financial Section \nNotes to Required Supplementary Information (UNAUDITED) \nJune 30, 2016 \n(1) Schedule of Employers' and Nonemployers' Contributions  Defined Benefit Pension Plans This schedule presents the required contributions and the percent of required contributions actually contributed. \n(2) Schedule of Employers' and Nonemployers' Net Pension Liability and Related Ratios  Defined Benefit Pension Plans The components of the net pension liability as of the fiscal year end and the fiduciary net position as a percentage of the total pension liability as of that date are presented in this schedule. This trend information will be accumulated to display a ten-year presentation. \n(3) Schedule of Changes in Employers' and Nonemployers' Net Pension Liability  Defined Benefit Pension Plans Net pension liability, which is measured as total pension liability less the amount of the fiduciary net position, is presented in this schedule. This trend information will be accumulated to display a ten-year presentation. \n(4) Schedule of Investment Returns This schedule presents historical trend information about the annual money-weighted rate of return on plan investments, net of plan investment expense. This trend information will be accumulated to display a ten-year presentation. \n(5) Individual Plan Information This note provides information about changes of benefit terms, changes of assumptions, and methods and assumptions used in calculations of actuarially determined contributions. \nEmployees' Retirement System Changes of benefit terms - a new benefit tier was added for members joining the System on and after January 1, 2009. \nChanges of assumptions - in 2010 and later, the expectation of retired life mortality was changed to the RP-2000 Mortality Table rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience. \nPublic School Employees Retirement System Changes of benefit terms - the member contribution rate was increased from $4 to $10 per month for members joining the System on or after July 1, 2012. \nChanges of assumptions - on December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. \nLegislative Retirement System Changes of benefit terms - none. \nChanges of assumptions - on December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, and withdrawal. The expectation of retired life mortality was changed to the RP-2000 Combined Mortality Table projected to 2025 with projection scale BB and set forward 2 years for both males and females. \n(continued) 66 \n \n Financial Section \n \nNotes to Required Supplementary Information (UNAUDITED) \nGeorgia Judicial Retirement System Changes of benefit terms - spouses benefits were changed for members joining the System on and after July 1, 2012. \nChanges of assumptions - in 2010 and later, the expectation of retired life mortality was changed to the RP-2000 Mortality Table rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience. \n \nGeorgia Military Pension Fund Changes of benefit terms - none. \nChanges of assumptions - on December 17, 2015, the board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, and withdrawal. \nMethod and assumptions used in calculations of actuarially determined contributions. The actuarially determined contribution rates in the schedules of employers' and nonemployers' contributions are calculated as of June 30, 2013, three years prior to the end of the fiscal year in which contributions are reported. The following actuarial methods and assumptions were used to determine the most recent contribution rates reported in those schedules: \n \nActuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary Increases Investment rate of return \n \nERS \nEntry age Level dollar, closed 25 years 5-year smoothed market 3.00% 5.45-9.25% 7.50% net of pension plan investment expense, including inflation \n \nPSERS \nEntry age Level dollar, closed 25 years 5-year smoothed market 3.00% n/a 7.50% net of pension plan investment expense, including inflation \n \nLRS \nEntry age Level dollar, closed n/a 5-year smoothed market 3.00% n/a 7.50% net of pension plan investment expense, including inflation \n \nActuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary Increases Investment rate of return \n \nGJRS \nEntry age Level percent of pay, closed 20 years 5-year smoothed market 3.00% 6.00% 7.50% net of pension plan investment expense, including inflation \n \nGMPF \nEntry age Level dollar, closed 20 years 5-year smoothed market 3.00% n/a 7.50% net of pension plan investment expense, including inflation \n \n(6) Schedule of Funding Progress  Defined Benefit OPEB Plans The actuarial value of assets recognizes a portion of the difference between the fair value of assets and the expected actuarial value of assets, based on the assumed valuation rate of return. The amount recognized each year is 1/7th of the difference between fair value and expected actuarial value. \n(7) Schedule of Employer Contributions  Defined Benefit OPEB Plans The required employer contributions and percent of those contributions actually made are presented in the schedule. \n \n(continued) 67 \n \n Financial Section \n \nNotes to Required Supplementary Information (UNAUDITED) \n(8) Actuarial Assumptions  Defined Benefit OPEB Plans The SBF does not have an actuarial valuation as there are no funding requirements and no liabilities related to the fund. The information presented as the required supplementary information was determined as part of the actuarial valuations for the SEADActive and SEAD-OPEB plans at the dates indicated. Additional information from the actuarial valuations for the most recent two-year period is as follows: \n \nValuation date Actuarial cost method Amortization method Remaining amortization period of the funded excess Asset valuation method Actuarial assumptions: \nInvestment rate of return Projected salary increases: \nERS GJRS LRS \n \nSEAD - Active June 30, 2015 Projected Unit Credit Level dollar, open n/a Market value of assets \n7.50% \n3.25-7.00% 4.50% 0.00% \n \nSEAD - Active June 30, 2014 Projected Unit Credit Level dollar, open n/a Market value of assets \n7.50% \n5.45-9.25% 6.00% 0.00% \n \nValuation date Actuarial cost method Amortization method Remaining amortization period of the funded excess Asset valuation method Actuarial assumptions: \nInvestment rate of return Projected salary increases: \nERS GJRS LRS \n \nSEAD - OPEB June 30, 2015 Projected Unit Credit Level dollar, open n/a Market value of assets \n7.50% \n3.25-7.00% 4.50% 0.00% \n \nSEAD - OPEB June 30, 2014 Projected Unit Credit Level dollar, open n/a Market value of assets \n7.50% \n5.45-9.25% 6.00% 0.00% \n \n Includes inflation rate of 3.00% in the 2014 and 2.75% in the 2015 valuations. \n \n68 \n \n Financial Section \n \nAdditional Information \n \nSchedule of Administrative Expenses - Contributions and Expenses Year ended June 30, 2016 (with comparative amounts for the year ended June 30, 2015) (In thousands) \n \nContributions: Employees' Retirement System Public School Employees Retirement System Legislative Retirement System Georgia Judicial Retirement System State Employees' Assurance Department - Active State Employees' Assurance Department - OPEB Georgia Defined Contribution Plan 401(k) Plan 457 Plan Georgia Military Pension Fund Superior Court Judges Retirement Fund District Attorneys Retirement Fund \nTotal contributions \nExpenses: Personal services: Salaries and fringes Retirement contributions FICA Health insurance Miscellaneous \nCommunications: Postage Publications and printing Telecommunications Travel \nProfessional services: Accounting services Computer services Contracts Actuarial services Medical services Professional fees Legal services \nManagement fees: Building maintenance \nOther services and charges: Temporary services Supplies and materials Repairs and maintenance Courier services Depreciation Miscellaneous Office equipment \nTotal expenses \nNet income \nSee accompanying independent auditors'report. \n \n2016 \n \n2015 \n \n$ \n \n8,506 $ \n \n7,872 \n \n1,321 \n \n1,545 \n \n313 \n \n169 \n \n754 \n \n819 \n \n67 \n \n47 \n \n599 \n \n428 \n \n766 \n \n990 \n \n2,832 \n \n2,755 \n \n820 \n \n866 \n \n262 \n \n121 \n \n4 \n \n3 \n \n1 \n \n1 \n \n16,245 \n \n15,616 \n \n5,074 1,211 \n360 1,546 \n73 \n8,264 \n245 14 64 14 \n337 \n709 792 3,175 428 180 260 \n39 \n5,583 \n \n5,098 1,084 \n361 1,552 \n89 \n8,184 \n267 39 63 14 \n383 \n603 792 3,013 380 187 309 \n41 \n5,325 \n \n617 \n \n617 \n \n966 \n \n621 \n \n77 \n \n57 \n \n20 \n \n18 \n \n3 \n \n3 \n \n320 \n \n352 \n \n55 \n \n53 \n \n3 \n \n3 \n \n1,444 \n \n1,107 \n \n16,245 \n \n15,616 \n \n$ \n \n$ \n \n \n \n69 \n \n Financial Section \n \nAdditional Information \nSchedule of Investment Expenses Year ended June 30, 2016 (with comparative amounts for the year ended June 30, 2015) \n \nInvestment advisory and custodial fees Miscellaneous \nTotal investment expenses \n \n2016 \n \n2015 \n \n$ \n \n6,070,210 $ \n \n7,442,722 \n \n13,805,757 \n \n13,196,528 \n \n$ \n \n19,875,967 $ \n \n20,639,250 \n \nSee accompanying independent auditors' report. \n \n70 \n \n Investment \nFinSaecntiocn ial \nSection \n \nInvestment Section \n \nERS \n \nGMPF \n \nGJRS \n \nERSGA \n \nLRS \n \nPSR \n \nGDCP \n \nPSERS \n \nE RSGA \n \nServing those who serve Georgia \n \nEmployees' Retirement System of Georgia \n \n Investment Section \n \nInvestment Overview \n \nWhile worldwide economic concerns remain in the forefront of investors' minds, it is politics that seems to have moved to the forefront of market worries. The concerns are too numerous to name, but the biggest problems currently seem to be Brexit and the U.S. election. The economy continued its slow growth with real GDP increasing 1.3% year over year. Generally, global growth remains concentrated in Asia and emerging markets. Despite relatively slow growth, low inflation and political uncertainty, the U.S. economy is performing better than most developed economies. The U.S. stock market had a subpar return of 3.6% for the fiscal year. \nIt is important to remember the pension plan has a long-term investment horizon and that short-term concerns should not drive the investment decisions. The System continues to invest in a mix of liquid, high quality bonds and stocks. In addition, the System continues to build its private markets program in a disciplined manner. These types of investments allow the System to participate in rising markets while moderating the risks on the downside. A high quality balanced fund has proven to be a successful strategy in a variety of markets over long periods of time. \n \nReturns for one-, three-, five-, ten- and twenty-year periods are presented in this section. Longer time periods, such as the twenty-year period, allow for more valid evaluation of returns, both in absolute terms and relative to an asset class index, by reducing emphasis on the short-term volatility of markets. The Daily Valuation Method was used to calculate rates of return in a manner consistent with the CFA Institute's objectives as stated in its publication \"Global Investment Performance Standards Handbook,\" third edition. \nThe return for the S\u0026P 500 was 3.6%. U.S. large cap stocks outperformed small cap and mid cap stocks last year. The S\u0026P MidCap 400 and the S\u0026P SmallCap 600 indexes had returns of 1.3% and 0.0%, respectively. The search for yield led to outsized returns for the Utilities and Telecom sectors while Financials and Energy had negative returns. \nInternational markets, on the other hand, had negative returns. The MSCI EAFE Index had a (10.2)% return and the MSCI Emerging Market Index had a return of (12.1)%. In a reversal from the prior year, the dollar was down about 1% against foreign currencies. \n \nAs in previous years, the bias to quality was a primary goal and was successfully met. \"Conservation of Capital\" and \"Conservatism\" remain the guiding principles for investment decisions. The Board of Trustees continues to use a diversified portfolio to accomplish these objectives. \nThe domestic economy continued to grow for the fiscal year although there was not broad based strength. Industrial production has been erratic and decreased slightly on a year over year basis. Employment and consumer demand remained relatively strong. Likewise, foreign economies presented a mixed bag of strength and weakness. For the most part central banks remained accommodative, though the Federal Reserve Bank did raise short term rates by 0.25% in December of 2015. \nStudies undertaken to evaluate the investment returns of pension funds over very long time horizons indicate that the asset allocation decision has the largest impact on the fund's returns. Although the returns for the various asset categories vary from year to year, over the long term equities usually outperform fixed income and cash by a very wide margin. For that reason, the System has generally maintained a significant equity exposure with the remainder of the fund invested in fixed income securities designed to generate income and preserve capital. \n \nInterest rates declined again so the longer the maturity of the bond the better the performance. The total return on the 10-year Treasury Note was 9.5% and the 30-year Treasury Bond had a 20.6% return. The return on short-term Treasury bills was 0.1%. \nWe look at two fixed income indexes to measure the bond market's performance. The Barclays Government / Credit Index had a return of 6.7%. It is a broad index containing corporate and government sponsored bonds as well as Treasuries. The Citigroup Treasury / Sponsored / AAA/AA had a return of 6.1% and is a broad index containing higher rated corporate bonds as well as Treasuries and Government securities. In another change from the prior year, higher quality bonds underperformed lower quality bonds as evidenced by a 1.5% outperformance of BBB rated bonds versus AA rated bonds. \nIn 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.\" \nPrepared by the Division of Investment Services \n \n72 \n \n Pooled Investment Fund \nAs of June 30, 2016 (Dollar amounts in thousands) \nEmployees' Retirement System (ERS) Public School Employees Retirement System (PSERS) Legislative Retirement System (LRS) Georgia Judicial Retirement System (GJRS) State Employees' Assurance Department (SEAD) - Active State Employees' Assurance Department (SEAD) - OPEB Survivors Benefit Fund (SBF) Georgia Military Pension Fund (GMPF) \nTotal \nRates of Return \n \nInvestment Section \n \n$ \n \n12,324,526 \n \n804,666 \n \n31,088 \n \n401,705 \n \n240,948 \n \n1,028,448 \n \n120,871 \n \n17,714 \n \n$ \n \n14,969,966 \n \n1 year 3 year 5 year 10 year 20 year \n \nEquities \n(0.3)% 8.7 % 8.9 % 6.1 % 7.1 % \n \nS\u0026P 1500 \n3.6 % 11.5 % 11.9 % 7.5 % 8.2 % \n \nMSCI ACWI ex US \n \nFixed Income \n \n(10.2)% \n \n5.5 % \n \n1.2 % \n \n3.5 % \n \n0.1 % \n \n3.5 % \n \n1.9 % \n \n5.1 % \n \n-- \n \n6.1 % \n \nBarclay's Govt/Credit \n6.7 % 4.2 % 4.1 % 5.2 % 5.7 % \n \n1 Month T-Bills \n \nTotal Portfolio \n \n0.1 % \n \n1.4 % \n \n0.1 % \n \n7.3 % \n \n-- \n \n7.4 % \n \n0.9 % \n \n6.4 % \n \n2.2 % \n \n7.1 % \n \nNote: Time-weighted rates of return are calculated using the Daily Valuation method based on market rates of return. 73 \n \nCPI \n1.1 % 1.1 % 1.3 % 1.7 % 2.2 % \n \n Asset Allocation at Fair Value \n \nInvestment Section \n \nInvestment Summary \nAsset Allocation as of June 30 (in percentages) \nEquities Fixed Income Mutual and Commingled Funds Private Equity Total \n \n2016 \n62.3% 29.5 \n7.6 0.6 \n100% \n \n2015 \n65.3 27.2 \n7.2 0.3 \n \n2014 \n67.2 25.6 \n7.1 0.1 \n \n2013 \n68.1 25.0 \n6.9 -- \n \n2012 \n65.9 27.3 \n6.8 -- \n \n2011 \n67.2 26.2 \n6.6 -- \n \n100 \n \n100 \n \n100 \n \n100 \n \n100 \n \nAsset Allocation as of June 30 (in millions) \nEquities Fixed Income Mutual and Commingled Funds Private Equity Total \n \n2016 \n$ 10,005 4,733 1,226 94 \n \n2015 \n10,915 4,543 1,204 52 \n \n2014 \n11,372 4,314 1,209 \n22 \n \n2013 \n10,374 3,811 1,057 -- \n \n2012 \n9,600 3,972 \n995 -- \n \n2011 \n10,060 3,902 992 -- \n \n$ 16,058 16,714 16,917 15,242 14,567 14,954 \n \n74 \n \n Investment Section \n \nSchedule of Fees and Commissions \nFor the Year Ended June 30, 2016 \nInvestment Advisors' Fees:* U.S. Equity International Equity Fixed Income \nInvestment Commissions: U.S. Equity International Equity \nTransaction Fees: Miscellaneous:* \nTotal Fees and Commissions \n*Amount included in total investment expenses shown on page 70. \n \n$ \n \n2,841,919 \n \n2,808,609 \n \n-- \n \n1,477,338 3,082,867 \n452,923 16,707,650 \n \n$ \n \n27,371,306 \n \n75 \n \n Investment Section \n \nTwenty Largest Equity Holdings  \nAs of June 30, 2016 \n \nShares \n1,589,926 207,161 \n2,774,194 1,481,213 1,069,460 \n929,100 137,051 1,684,892 2,610,994 853,019 1,018,488 2,694,270 565,700 1,274,088 1,812,294 1,641,243 969,700 1,543,390 2,037,324 600,486 \n \nCompany \nApple Inc. Alphabet Inc. Microsoft Corp. Exxon Mobil Corp. Johnson \u0026 Johnson Facebook, Inc. Amazon.Com Inc. Verizon Communications Inc. Pfizer Inc. Chevron Corp. Procter \u0026 Gamble Co. General Electric Co. Berkshire Hathaway Inc. JPMorgan Chase \u0026 Co. AT\u0026T Inc. Wells Fargo \u0026 Co. Visa Inc. Coca Cola Co. Intel Corp. PepsiCo Inc. \nTop 20 Equities Remaining Equities \n \nTotal Equities \n \nA complete listing is available upon written request, subject to restrictions of O.C.G.A. Section 47-1-14. \n \nFair Value $ 151,996,926 \n144,640,743 141,955,507 138,848,907 129,725,498 106,177,548 \n98,076,437 94,084,369 91,933,099 89,421,982 86,235,379 84,815,620 81,907,703 79,171,828 78,309,224 77,680,031 71,922,649 69,961,869 66,824,227 63,615,485 \n$ 1,947,305,031 8,046,598,263 \n$ 9,993,903,294 \n \n76 \n \n Investment Section \n \nFixed Income Holdings* \nAs of June 30, 2016 \n \nIssuer \n \nYear of Maturity \n \nUS TREAS. NOTE US TREAS. NOTE US TREAS. NOTE US TREAS. NOTE GENERAL ELECTRIC CO US TREAS. NOTE US TREAS. BOND US TREAS. BOND GENERAL ELECTRIC CAP CORP EMC CORP US TREAS. NOTE US TREAS. NOTE US TREAS. NOTE EXXON MOBIL CORP MICROSOFT CORP US TREAS. NOTE BP CAPITAL MARKETS PROCTER \u0026 GAMBLE CO EXXON MOBIL CORP SHELL INTERNATIONAL FIN PRAXAIR INC US TREAS. NOTE COMCAST-NBC PRAXAIR INC CISCO SYSTEMS INC ANHEUSER-BUSCH JPMORGAN CHASE \u0026 CO US TREAS. NOTE UNITED PARCEL SERVICE ONTARIO (PROVINCE OF) WALT DISNEY COMPANY AT\u0026T INC ROYAL BANK OF CANADA US TREAS. NOTE INTEL CORP APPLE INC SCHLUMBERGER INVESTMENT MICROSOFT CORP COCA COLA CO PFIZER INC ILLINOIS TOOL WORKS INC ILLINOIS TOOL WORKS INC COCA COLA CO US TREAS. NOTE US TREAS. BOND US TREAS. NOTE US TREAS. NOTE MICROSOFT CORP \n \n2024 2017 2023 2021 2022 2024 2039 2028 2026 2020 2019 2019 2022 2021 2025 2019 2020 2018 2019 2018 2019 2016 2018 2018 2017 2017 2017 2021 2021 2017 2017 2017 2017 2022 2021 2021 2021 2035 2018 2018 2019 2017 2020 2019 2045 2022 2022 2017 \n \nERS Fixed Income Securities Defined Contribution Fixed Income Securities \n \nInterest Rate \n2.2500 1.8750 1.5000 2.1250 2.7000 2.3750 3.5000 5.2500 5.5500 2.6500 1.6250 1.6250 1.8750 2.2220 2.7000 1.6250 2.5210 1.6000 1.8190 1.9000 1.9000 0.8750 1.6620 1.2000 1.1000 1.1250 1.2500 3.1250 3.1250 1.1000 1.1250 1.4000 1.1700 1.6250 3.3000 2.2500 3.3000 3.5000 1.6500 1.5000 1.9500 0.9000 2.4500 1.0000 2.8750 1.7500 1.7500 0.8750 \n \nTotal ERS and Defined Contribution Fixed Income Securities \n \n*A complete listing is available upon written request, subject to restrictions of O.C.G.A. Section 47-1-14. \n \n77 \n \nPar Value \n \n$ \n \n309,000,000 \n \n254,000,000 \n \n200,000,000 \n \n155,000,000 \n \n145,000,000 \n \n136,000,000 \n \n115,000,000 \n \n102,000,000 \n \n92,000,000 \n \n112,000,000 \n \n102,000,000 \n \n102,000,000 \n \n100,000,000 \n \n100,000,000 \n \n97,000,000 \n \n97,000,000 \n \n96,000,000 \n \n96,000,000 \n \n96,000,000 \n \n96,000,000 \n \n96,000,000 \n \n97,000,000 \n \n96,000,000 \n \n96,000,000 \n \n96,000,000 \n \n96,000,000 \n \n96,000,000 \n \n79,000,000 \n \n77,000,000 \n \n77,000,000 \n \n77,000,000 \n \n77,000,000 \n \n77,000,000 \n \n64,000,000 \n \n59,000,000 \n \n60,000,000 \n \n58,000,000 \n \n58,000,000 \n \n58,000,000 \n \n58,000,000 \n \n48,000,000 \n \n48,000,000 \n \n39,000,000 \n \n34,000,000 \n \n30,000,000 \n \n30,000,000 \n \n30,000,000 \n \n20,000,000 \n \n$ 4,433,000,000 \n \n85,000,000 \n \n$ 4,518,000,000 \n \nFair Value \n \n$ \n \n329,616,480 \n \n258,157,980 \n \n202,882,000 \n \n163,343,650 \n \n152,177,500 \n \n146,391,760 \n \n145,133,450 \n \n143,573,160 \n \n114,685,360 \n \n106,908,480 \n \n104,721,360 \n \n104,606,100 \n \n103,934,000 \n \n103,105,000 \n \n100,279,570 \n \n99,633,550 \n \n99,036,480 \n \n98,043,840 \n \n97,822,080 \n \n97,656,960 \n \n97,536,000 \n \n97,110,580 \n \n97,108,800 \n \n96,245,760 \n \n96,238,080 \n \n96,084,480 \n \n95,992,320 \n \n86,915,800 \n \n82,543,230 \n \n77,266,420 \n \n77,189,420 \n \n77,123,200 \n \n76,855,240 \n \n65,630,080 \n \n63,963,670 \n \n61,732,800 \n \n61,463,180 \n \n60,010,860 \n \n58,872,900 \n \n58,578,840 \n \n49,128,480 \n \n48,031,200 \n \n40,680,900 \n \n34,261,800 \n \n33,686,700 \n \n31,005,600 \n \n30,997,200 \n \n20,026,000 \n \n$ 4,643,988,300 \n \n88,436,600 \n \n$ 4,732,424,900 \n \n Actuarial \nFinSeactnioncial \nSection \n \nActuarial Section \n \nERS \n \nGMPF \n \nGJRS \n \nERSGA \n \nLRS \n \nPSR \n \nGDCP \n \nPSERS \n \nE RSGA \n \nServing those who serve Georgia \n \nEmployees' Retirement System of Georgia \n \n Actuarial Section \n \nERS April 21, 2016 \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nBoard of Trustees Employees' Retirement System of Georgia Two Northside 75, Suite 300 Atlanta, GA 30318-7701 \n \nAttn: Mr. James Potvin, Executive Director \n \nMembers of the Board: \n \nSection 47-2-26 of the law governing the operation of the Employees' Retirement System of Georgia provides that the actuary shall make annual valuations of the contingent assets and liabilities of the Retirement System on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2015. The report indicates that annual employer contributions at the rate of 19.94% of compensation for Old Plan Members, 24.69% of compensation for New Plan Members, and 21.66% of compensation for GSEPS Members for the fiscal year ending June 30, 2018 are sufficient to support the benefits of the System. \nSince the previous valuation, various assumptions and methods have been revised to reflect the results of the experience investigation for the five-year period ending June 30, 2014. \n \nunder the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level as a percent of payroll. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a level percent of payroll. Gains and losses are reflected in the total unfunded accrued liability which is being amortized on a level dollar basis in accordance with the funding policy adopted by the Board. \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports. \n \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2015 session of the General Assembly. \nThe System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience \n \nWe have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report: \n Summary of Actuarial Assumptions  Schedule of Active Members  Schedule of Funding Progress  Schedule of Retirees Added to and Removed from Rolls  Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \nThe System is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is operating on an actuarially sound basis. Assuming that \n \n(continued) 79 \n \n Actuarial Section \n \ncontributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the System and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System. \n \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \n \nSincerely yours, \n \nEdward A. Macdonald, ASA, FCA MAAA President \n \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n \nCathy Turcot Principal and Managing Director \n \n80 \n \n Actuarial Section \n \nPSERS April 21, 2016 \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nBoard of Trustees Georgia Public School Employees Retirement System Two Northside 75, Suite 300 Atlanta, GA 30318-7701 \n \nAttn: Mr. James Potvin, Executive Director \n \nMembers of the Board: \n \nSection 47-4-60 of the law governing the operation of the Georgia Public School Employees Retirement System provides that the employer contribution shall be actuarially determined and approved by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2015. Based on a monthly benefit accrual rate of $14.75, the valuation indicates that annual employer contributions of $27,705,000 or $780.92 per active member for the fiscal year ending June 30, 2018 are sufficient to support the benefits of the System. \nThe results of the valuation reflect that the Board did not grant the anticipated cost-of-living increases (COLAs) to retired members on July 1, 2015 and on January 1, 2016. \n \nassumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level as a dollar per active member. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a dollar per active member. Gains and losses are reflected in the total unfunded accrued liability which is being amortized as a level dollar per active member in accordance with the funding policy adopted by the Board. \n \nSince the previous valuation, various assumptions and methods have been revised to reflect the results of the experience investigation for the five-year period ending June 30, 2014. \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2015 session of the General Assembly. \nThe System is funded on an actuarial reserve basis. The actuarial \n \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports. \nWe have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report: \n Summary of Actuarial Assumptions  Schedule of Active Members  Schedule of Funding Progress  Schedule of Retirees Added to and Removed from Rolls  Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \nThe System is currently being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding \n \n(continued) 81 \n \n Actuarial Section \n \npolicy adopted by the Board. In our opinion the System is currently operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the \n \ncurrent provisions of the System and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \n \nSincerely yours, \n \nEdward A. Macdonald, ASA, FCA MAAA President \n \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n \nCathy Turcot Principal and Managing Director \n \n82 \n \n Actuarial Section \n \nGJRS April 21, 2016 \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nBoard of Trustees Georgia Judicial Retirement System Two Northside 75, Suite 300 Atlanta, GA 30318-7701 \n \nAttn: Mr. James Potvin, Executive Director \n \nMembers of the Board: \n \nSection 47-23-21 of the law governing the operation of the Georgia Judicial Retirement System provides that the actuary shall make annual valuations of the contingent assets and liabilities of the Retirement System on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2015. The report indicates that annual employer contributions at the rate of 7.17% of compensation for the fiscal year ending June 30, 2018 are sufficient to support the benefits of the System. \n \nused for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level as a percent of payroll. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a level percent of payroll. Gains and losses are reflected in the total unfunded accrued liability which is negative and being amortized as a level percent of payroll in accordance with the funding policy adopted by the Board. \n \nSince the previous valuation, various assumptions and methods have been revised to reflect the results of the experience investigation for the five-year period ending June 30, 2014. \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2015 session of the General Assembly. \nThe System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods \n \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No.67 and 68. The necessary disclosure information is provided in separate supplemental reports. \nWe have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report: \n Summary of Actuarial Assumptions  Schedule of Active Members  Schedule of Funding Progress  Schedule of Retirees Added to and Removed from Rolls  Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \nThe System is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future \n \n(continued) 83 \n \n Actuarial Section \n \nat 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. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System. \n \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \n \nSincerely yours, \n \nEdward A. Macdonald, ASA, FCA MAAA President \n \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n \nCathy Turcot Principal and Managing Director \n \n84 \n \n Actuarial Section \n \nLRS April 21, 2016 \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nBoard of Trustees Legislative Retirement System of Georgia Two Northside 75, Suite 300 Atlanta, GA 30318-7701 \n \nAttn: Mr. James Potvin, Executive Director \n \nMembers of the Board: \n \nSection 47-6-22 of the law governing the operation of the Georgia Legislative Retirement System provides that the actuary shall make periodic valuations of the contingent assets and liabilities of the Retirement System on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2015. The report indicates that no annual employer contributions for the fiscal year ending June 30, 2018 are required to support the benefits of the System. \nSince the previous valuation, various assumptions and methods have been revised to reflect the results of the experience investigation for the five-year period ending June 30, 2014. In addition, the results of the valuation reflect that the Board did not grant the anticipated cost-of-living increases (COLAs) to retired members on July 1, 2015 and on January 1, 2016. \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2015 session of the General Assembly. \nThe System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience \n \nunder the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level as a dollar per active member. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a level dollar per active member. Gains and losses are reflected in the total unfunded accrued liability which is negative and being amortized as a level dollar per active member in accordance with the funding policy adopted by the Board. \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports. \nWe have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report: \n Summary of Actuarial Assumptions  Schedule of Active Members  Schedule of Funding Progress  Schedule of Retirees Added to and Removed from Rolls  Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \nThe System is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is operating on \n \n(continued) 85 \n \n Actuarial Section \n \non 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. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial \n \nassumptions that are internally consistent and reasonably based on the actual experience of the System. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \n \nSincerely yours, \n \nEdward A. Macdonald, ASA, FCA MAAA President \n \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n \nCathy Turcot Principal and Managing Director \n \n86 \n \n Actuarial Section \n \nGMPF April 21, 2016 \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nBoard of Trustees Georgia Military Pension Fund Two Northside 75, Suite 300 Atlanta, GA 30318-7701 \n \nAttn: Mr. James Potvin, Executive Director \n \nMembers of the Board: \n \nSection 47-24-22 of the law governing the operation of the Georgia Military Pension Fund provides that the actuary shall make periodic valuations of the contingent assets and liabilities of the Pension Fund on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the Fund prepared as of June 30, 2015. The report indicates that annual employer contributions of $2,377,312 or $172.85 per active member for the fiscal year ending June 30, 2018 are sufficient to support the benefits of the Fund. \n \nfor financial reporting purposes meet the parameters set by Actuarial Standards of Practice (ASOPs). The funding objective of the plan is that contribution rates over time will remain level as a dollar per active member. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a dollar per active member. Gains and losses are reflected in the total unfunded accrued liability which is being amortized as a level dollar per active member in accordance with the funding policy adopted by the Board. \n \nSince the previous valuation, various assumptions and methods have been revised to reflect the results of the experience investigation for the five-year period ending June 30, 2014. \nIn preparing the valuation, the actuary relied on data provided by the Fund. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the Fund enacted through the 2015 session of the General Assembly. \nThe Fund is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the Fund and to reasonable expectations of anticipated experience under the Fund. The assumptions and methods used \n \nThe Plan and the employers are required to comply with the financial reporting requirements of GASB Statements No. 67 and 68. The necessary disclosure information is provided in separate supplemental reports. \nWe have provided the following information and supporting schedules for the Actuarial Section of the Comprehensive Annual Financial Report: \n Summary of Actuarial Assumptions  Schedule of Active Members  Schedule of Funding Progress  Schedule of Retirees Added to and Removed from Rolls  Analysis of Change in Unfunded Accrued Liability  Solvency Test Results \nThe Fund is being funded in conformity with the minimum funding standard set forth in Code Section Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the Fund is operating on an actuarially sound basis. Assuming that contributions to the Fund are made by the employer from year to year in the future at \n \n(continued) 87 \n \n Actuarial Section \n \nthe rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the Fund may be safely anticipated. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based \n \non the actual experience of the Fund. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \n \nSincerely yours, \n \nEdward A. Macdonald, ASA, FCA MAAA President \n \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n \nCathy Turcot Principal and Managing Director \n \n88 \n \n Actuarial Section \n \nSEAD Pre-Retirement April 21, 2016 \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nBoard of Trustees Employees' Retirement System of Georgia Two Northside 75, Suite 300 Atlanta, GA 30318-7701 \n \nAttn: Mr. James Potvin, Executive Director \n \nMembers of the Board: \n \nChapters 47-2 and 47-19 of the Code of Georgia which govern the operation of the Georgia Employees' Group Term Life Insurance Plan provide that the actuary shall make periodic valuations of the contingent assets and liabilities of the Insurance Plan on the basis of regular interest and the tables last adopted by the Board of Trustees. In this report, we have determined liabilities for life insurance benefits payable upon death in active service (PreRetirement). \nWe have submitted the report giving the results of the valuation of the Plan prepared as of June 30, 2015. The report indicates that employee contributions at the rate of 0.05% of active payroll for Old Plan members of the Employees' Retirement System, and 0.02% of active payroll for New Plan members of the Employees' Retirement System, members of the Legislative Retirement System and members of the Judicial Retirement System are sufficient to support the pre-retirement benefits of the Plan. No employer contribution is required for the fiscal year ending June 30, 2018 for pre-retirement benefits. \nSince the previous valuation, various assumptions and methods have been revised to reflect the results of the experience investigation for the five-year period ending June 30, 2014. \nThe funding method used for this valuation is the unit credit actuarial cost method with projected benefits. Gains and losses are reflected in the unfunded accrued liability. The actuarial assumptions used are in the aggregate reasonably related to the experience under the Plan and to reasonable expectations of \n \nanticipated experience under the Plan. In our opinion, the Plan is operating on an actuarially sound basis and the sufficiency of the funds to provide the benefits called for by the Plan may be safely anticipated. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the Plan. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \n \nSincerely yours, \n \nEdward A. Macdonald, ASA, FCA MAAA President \n \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n89 \n \nCathy Turcot Principal and Managing Director \n \n Actuarial Section \n \nSEAD Post-Retirement April 21, 2016 \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \n \nBoard of Trustees Employees' Retirement System of Georgia Two Northside 75, Suite 300 Atlanta, GA 30318-7701 \n \nAttn: Mr. James Potvin, Executive Director \n \nMembers of the Board: \n \nChapters 47-2 and 47-19 of the Code of Georgia which govern the operation of the Georgia Employees' Group Term Life Insurance Plan provide that the actuary shall make periodic valuations of the contingent assets and liabilities of the Insurance Plan on the basis of regular interest and the tables last adopted by the Board of Trustees. In this report, we have determined liabilities for life insurance benefits payable upon death after retirement (PostRetirement). \nIn accordance with GASB 43 and 45, we have determined the liabilities for life insurance benefits payable upon death after retirement. We have submitted the report giving the results of the valuation of the Plan prepared as of June 30, 2015. The report indicates, for post-retirement benefits, there is no employer annual required contribution for the fiscal year ending June 30, 2018. \nSince the previous valuation, various assumptions and methods have been revised to reflect the results of the experience investigation for the five-year period ending June 30, 2014. \nThe funding method used for this valuation is the unit credit actuarial cost method with projected benefits. Gains and losses are reflected in the unfunded accrued liability. The actuarial assumptions used are in the aggregate reasonably related to the experience under the Plan and to reasonable expectations of anticipated experience under the Plan. In our opinion, the Plan is operating on an actuarially sound \n \nbasis and the sufficiency of the funds to provide the benefits called for by the Plan may be safely anticipated assuming future annual required contributions (ARC) are contributed when due. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the Plan. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \n \nSincerely yours, \n \nEdward A. Macdonald, ASA, FCA MAAA President \n \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n90 \n \nCathy Turcot Principal and Managing Director \n \n Actuarial Section \nSummary of Plan Provisions \nERS  Please see Notes to Financial Statements, (2)(a), pages 26-27. PSERS  Please see Notes to Financial Statements, (2)(b), page 27-28. LRS  Please see Notes to Financial Statements, (2)(c), pages 28-29. GJRS  Please see Notes to Financial Statements, (2)(d), pages 29-30. GMPF  Please see Notes to Financial Statements, (2)(e), page 30. SEAD-Active  Please see Notes to Financial Statements, (2)(f), pages 30-31. SEAD-OPEB  Please see Notes to Financial Statements, (2)(g), page 31-32. The following Boards are responsible for establishing and maintaining the funding policies of the various defined benefit systems administered by ERSGA: \n Board of Trustees of the Employees' Retirement System: ERS, LRS, and GMPF  Board of Trustees of the Public School Employees Retirement System: PSERS  Board of Trustees of the Georgia Judicial Retirement System: GJRS  Board of Directors of the State Employees Assurance Department: SEAD-Active and SEAD-OPEB ERS, PSERS, LRS, GJRS, and GMPF are all subject to the provisions of GASB Statement No. 67 (GASB 67); SEAD-Active and SEAD-OPEB are not. All of the systems covered under GASB 67 use the Entry Age Normal actuarial cost method for both funding and financial reporting purposes. This continues a long-standing practice for all of those systems and provides a point of consistency between the funding provisions and the GASB 67 requirements. For all of the systems covered under GASB 67, the GASB 67 reports prepared as of June 30, 2016 were largely based on the data, assumptions, and results of the annual funding valuations as of June 30, 2015 (detailed in reports dated April 21, 2015). The Total Pension Liability (TPL) for each system, determined using the Entry Age Normal method, was then rolled forward to the June 30, 2016 measurement date. The Net Pension Liability for each system is equal to the rolled forward TPL less the system's net position as of June 30, 2016. For the funding valuations as of June 30, 2015, the Actuarial Value of Assets is calculated using a five-year smoothing methodology, whereby excesses and shortfalls of actual investment income over or under the expected investment return will be recognized over the succeeding five-year periods. For the funding valuations, each system covered under GASB 67 utilizes a 7.5% assumed rate of return and a 7.5% discount rate for the calculation of the respective systems' liabilities. The Single Equivalent Interest Rate required under GASB 67 has also been determined to be 7.5% by the systems' actuaries. \n91 \n \n Actuarial Section \n \nSummary of Actuarial Assumptions \nThe laws governing the Employees' Retirement System and the plans it administers require an actuary to perform an annual valuation of the soundness of the systems. In addition, the actuary must perform at least once every five years an actuarial investigation of the mortality, service, and compensation experience of the members and beneficiaries of the System. The latest valuation was performed as of June 30, 2015 based on actuarial assumptions approved by the Board during the last experience study on December 17, 2015. \nThe more pertinent facts and significant assumptions underlying the computations included in the June 30, 2015 reports are as follows: \n \nValuation Date Actuarial Cost Method Amortization Method \nAmortization Period \n \nERS June 30, 2015 \nEntry age Level dollar, closed \n19.4 years \n \nPSERS June 30, 2015 \nEntry age Level dollar, closed \n22.9 years \n \nGJRS \nJune 30, 2015 Entry age \nLevel percent of pay, closed \n19.0 years \n \nLRS June 30, 2015 \nEntry age Level dollar, closed \nInfinite \n \nGMPF June 30, 2015 \nEntry age Level dollar, closed \n18.2 years \n \nActuarial Asset Valuation Method \nInvestment Rate of Return Inflation Rate Projected Salary Increases COLA \n \nThe actuarial value of assets was based on the total fair value income of investments, with the excess or shortfall of actual investment income over or under the expected investment return smoothed over 5 years. One-fifth of the excess or shortfall is recognized each year for five years. \n \n7.50% 2.75% 3.25-7.00% None \n \n7.50% 2.75% \nn/a 1.50% Semi-annually \n \n7.50% 2.75% 4.50% None \n \n7.50% 2.75% \nn/a 3.0% Annually \n \n7.50% 2.75% \nn/a None \n \nValuation Date Actuarial Cost Method \nAmortization Method \nAmortization Period \n \nSEAD (Active \u0026 OPEB) \nJune 30, 2015 Projected unit credit \nLevel dollar, closed \nInfinite \n \nActuarial Asset Valuation Method \nInvestment Rate of Return Inflation Rate Projected Salary Increases \nERS GJRS LRS COLA \n \nMarket Value of Assets \n7.50% 2.75% \n3.25-7.00% 4.50% 0.00% n/a \n \n(continued) 92 \n \n Actuarial Section \n \nSummary of Actuarial Assumptions \nRates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability) ERS Representative values of the assumed annual rates of separation other than retirement for non-law enforcement officers are as follows. Special rates of separation apply to law enforcement officers. \n \nAnnual Rates of Death Annual Rates of Disability \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \n20 \n \n.0320 % .0177 % .05 % \n \n.02 % \n \n25 \n \n.0349 \n \n.0192 \n \n.05 \n \n.02 \n \n30 \n \n.0412 \n \n.0245 \n \n.05 \n \n.02 \n \n35 \n \n.0717 \n \n.0441 \n \n.05 \n \n.02 \n \n40 \n \n.1001 \n \n.0655 \n \n.25 \n \n.10 \n \n45 \n \n.1399 \n \n.1043 \n \n.48 \n \n.25 \n \n50 \n \n.1983 \n \n.1555 \n \n.70 \n \n.45 \n \n55 \n \n.2810 \n \n.2228 \n \n1.05 \n \n.73 \n \n60 \n \n.4092 \n \n.3058 \n \n-- \n \n-- \n \n65 \n \n.5600 \n \n.4304 \n \n-- \n \n-- \n \nAnnual Rates of Withdrawal Years of Service \n \n0-4 \n \n5-9 \n \n10 \u0026 over \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \n20 \n \n35.00 % 30.00 % \n \n--% \n \n--% \n \n--% \n \n--% \n \n25 \n \n27.50 \n \n25.00 \n \n15.00 \n \n17.50 \n \n-- \n \n-- \n \n30 \n \n23.00 \n \n21.50 \n \n11.50 \n \n12.50 \n \n7.50 \n \n8.25 \n \n35 \n \n21.50 \n \n19.50 \n \n10.00 \n \n10.50 \n \n6.00 \n \n6.00 \n \n40 \n \n19.50 \n \n18.25 \n \n9.50 \n \n9.50 \n \n4.75 \n \n5.00 \n \n45 \n \n18.60 \n \n16.50 \n \n9.00 \n \n8.00 \n \n4.00 \n \n4.00 \n \n50 \n \n16.60 \n \n15.00 \n \n7.25 \n \n7.25 \n \n4.25 \n \n4.25 \n \n55 \n \n14.50 \n \n14.00 \n \n7.00 \n \n7.00 \n \n4.75 \n \n4.50 \n \n60 \n \n14.00 \n \n14.50 \n \n6.00 \n \n6.25 \n \n-- \n \n-- \n \n65 \n \n15.00 \n \n17.00 \n \n10.00 \n \n11.00 \n \n-- \n \n-- \n \n(continued) 93 \n \n Actuarial Section \n \nSummary of Actuarial Assumptions Rates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability) \nPSERS \n \nAnnual Rates of Death \n \nAnnual Rates of Disability \n \nAge \n \nMen \n \nWomen \n \nBoth \n \n20 \n \n.0320 % .0177 % \n \n--% \n \n25 \n \n.0349 \n \n.0192 \n \n-- \n \n30 \n \n.0412 \n \n.0245 \n \n-- \n \n35 \n \n.0717 \n \n.0441 \n \n.0025 \n \n40 \n \n.1001 \n \n.0655 \n \n.0110 \n \n45 \n \n.1399 \n \n.1043 \n \n.0370 \n \n50 \n \n.1983 \n \n.1555 \n \n.0865 \n \n55 \n \n.2810 \n \n.2228 \n \n.2250 \n \n60 \n \n.4092 \n \n.3058 \n \n.3500 \n \n65 \n \n.5600 \n \n.4304 \n \n-- \n \nAnnual Rates of Withdrawal Years of Service \n \n0-4 \n \n5-9 \n \n10 \u0026 over \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \n20 \n \n37.00 % 32.00 % \n \n--% \n \n--% \n \n--% \n \n--% \n \n25 \n \n28.00 \n \n28.00 \n \n17.00 \n \n18.00 \n \n-- \n \n-- \n \n30 \n \n25.00 \n \n23.00 \n \n15.00 \n \n15.00 \n \n12.00 \n \n10.00 \n \n35 \n \n23.00 \n \n19.00 \n \n13.00 \n \n13.00 \n \n9.00 \n \n10.00 \n \n40 \n \n21.00 \n \n17.00 \n \n12.00 \n \n12.00 \n \n7.50 \n \n8.00 \n \n45 \n \n19.00 \n \n15.50 \n \n11.00 \n \n10.00 \n \n6.50 \n \n7.00 \n \n50 \n \n17.00 \n \n14.00 \n \n9.00 \n \n8.50 \n \n6.50 \n \n6.00 \n \n55 \n \n15.00 \n \n12.00 \n \n9.00 \n \n8.00 \n \n6.00 \n \n5.50 \n \n60 \n \n12.00 \n \n11.00 \n \n7.50 \n \n7.50 \n \n-- \n \n-- \n \n(continued) 94 \n \n Actuarial Section \n \nSummary of Actuarial Assumptions \n \nRates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability) GJRS \n \nAnnual Rates of \n \nWithdrawal \n \nDeath \n \nDisability \n \nAge \n \nBoth \n \nMen \n \nWomen \n \nBoth \n \n20 \n \n4.0 % \n \n.032 % \n \n.018 % \n \n.03 % \n \n25 \n \n4.0 \n \n.035 \n \n.019 \n \n.03 \n \n30 \n \n4.0 \n \n.041 \n \n.025 \n \n.05 \n \n35 \n \n4.0 \n \n.072 \n \n.044 \n \n.08 \n \n40 \n \n6.0 \n \n.100 \n \n.066 \n \n.10 \n \n45 \n \n4.0 \n \n.140 \n \n.104 \n \n.18 \n \n50 \n \n3.0 \n \n.198 \n \n.156 \n \n.25 \n \n55 \n \n2.5 \n \n.281 \n \n.223 \n \n.45 \n \n60 \n \n2.5 \n \n.409 \n \n.306 \n \n.73 \n \n65 \n \n2.5 \n \n.560 \n \n.430 \n \n1.18 \n \nLRS \n \nAnnual Rates of \n \nWithdrawal \n \nDeath \n \nAge \n \nBoth \n \nMen \n \nWomen \n \n20 \n \n8.0 % \n \n.032 % \n \n.018 % \n \n25 \n \n8.0 \n \n.035 \n \n.019 \n \n30 \n \n8.0 \n \n.041 \n \n.025 \n \n35 \n \n8.0 \n \n.072 \n \n.044 \n \n40 \n \n8.0 \n \n.100 \n \n.066 \n \n45 \n \n8.5 \n \n.140 \n \n.104 \n \n50 \n \n8.5 \n \n.198 \n \n.156 \n \n55 \n \n9.0 \n \n.281 \n \n.223 \n \n60 \n \n9.0 \n \n.409 \n \n.306 \n \n65 \n \n9.0 \n \n.560 \n \n.430 \n \nGMPF \n \nRates of Withdrawal from Active Service \n \nService \n \nRates \n \n2 or less 3-7 8-9 10-14 15-19 20 or more \n \n13.0 % 17.5 14.0 13.5 8.5 14.5 \n \n95 \n \nAge \n \nRates of Death \n \nMen \n \nWomen \n \n25 \n \n.0349% \n \n.0192% \n \n30 \n \n.0412 \n \n.0245 \n \n35 \n \n.0717 \n \n.0441 \n \n40 \n \n.1001 \n \n.0655 \n \n45 \n \n.1339 \n \n.1043 \n \n50 \n \n.1983 \n \n.1555 \n \n55 \n \n.2810 \n \n.2228 \n \n60 \n \n.4092 \n \n.3058 \n \n(continued) \n \n Actuarial Section \n \nSummary of Actuarial Assumptions \nRates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability) SEAD-Active and SEAD-OPEB \n \nAll Groups Annual Rates of Death \n \nAge \n \nMen \n \nWomen \n \nERS \n \nAnnual Rates of Disability \n \nMen \n \nWomen \n \nGJRS \nAnnual Rates of Disability \nBoth \n \n20 \n \n.0320 % .0177 % \n \n.05 % \n \n.02 % \n \n.03 % \n \n25 \n \n.0349 \n \n.0192 \n \n.05 \n \n.02 \n \n.03 \n \n30 \n \n.0412 \n \n.0245 \n \n.05 \n \n.02 \n \n.05 \n \n35 \n \n.0717 \n \n.0441 \n \n.05 \n \n.02 \n \n.08 \n \n40 \n \n.1001 \n \n.0655 \n \n.25 \n \n.10 \n \n.10 \n \n45 \n \n.1399 \n \n.1043 \n \n.48 \n \n.25 \n \n.18 \n \n50 \n \n.1983 \n \n.1555 \n \n.70 \n \n.45 \n \n.25 \n \n55 \n \n.2810 \n \n.2228 \n \n1.05 \n \n.73 \n \n.45 \n \n60 \n \n.4092 \n \n.3058 \n \n-- \n \n-- \n \n.73 \n \n65 \n \n.5600 \n \n.4304 \n \n-- \n \n-- \n \n1.18 \n \nERS \n \nLRS \n \nGJRS \n \nAnnual Rates of Withdrawal Years of Service \n \nAnnual Rates of Annual Rates of \n \nWithdrawal \n \nWithdrawal \n \n0-4 \n \n5-9 \n \n10 \u0026 over \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \n20 \n \n35.00 % 30.00 % \n \n--% \n \n--% \n \n--% \n \n--% \n \n25 \n \n27.50 \n \n25.00 \n \n15.00 \n \n17.50 \n \n-- \n \n-- \n \n30 \n \n23.00 \n \n21.50 \n \n11.50 \n \n12.50 \n \n7.50 \n \n8.25 \n \n35 \n \n21.50 \n \n19.50 \n \n10.00 \n \n10.50 \n \n6.00 \n \n6.00 \n \n40 \n \n19.50 \n \n18.25 \n \n9.50 \n \n9.50 \n \n4.75 \n \n5.00 \n \n45 \n \n18.60 \n \n16.50 \n \n9.00 \n \n8.00 \n \n4.00 \n \n4.00 \n \n50 \n \n16.60 \n \n15.00 \n \n7.25 \n \n7.25 \n \n4.25 \n \n4.25 \n \n55 \n \n14.50 \n \n14.00 \n \n7.00 \n \n7.00 \n \n4.75 \n \n4.50 \n \n60 \n \n14.00 \n \n14.50 \n \n6.00 \n \n6.25 \n \n-- \n \n-- \n \n65 \n \n15.00 \n \n17.00 \n \n10.00 \n \n11.00 \n \n-- \n \n-- \n \nBoth \n8.00 % 8.00 8.00 8.00 8.00 8.50 8.50 9.00 9.00 9.00 \n \nBoth \n4.00 % 4.00 4.00 4.00 6.00 4.00 3.00 2.50 2.50 2.50 \n \n96 \n \n Actuarial Section \n \nSummary of Actuarial Assumptions \nAnnual Rates of Retirement ERS \n \nOld Plan \n \nEarly Retirement \n \nAge 60 or 30 years \n \n34 years \n \nMore than 34 years \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \n50 \n \n2.0 % \n \n2.0 % \n \n7.5 % \n \n6.0 % 100.0 % \n \n100.0 % \n \n90.0 % \n \n100.0 % \n \n52 \n \n2.0 \n \n2.0 \n \n7.5 \n \n6.0 \n \n100.0 \n \n100.0 \n \n90.0 \n \n100.0 \n \n55 \n \n3.0 \n \n3.5 \n \n7.5 \n \n10.0 \n \n100.0 \n \n100.0 \n \n75.0 \n \n90.0 \n \n57 \n \n3.5 \n \n60 \n \n-- \n \n-- \n \n62 \n \n-- \n \n65 \n \n-- \n \n67 \n \n-- \n \n-- \n \n70 \n \n-- \n \n75 \n \n-- \n \n5.0 \n \n10.5 \n \n10.0 \n \n100.0 \n \n-- \n \n15.0 \n \n20.0 \n \n97.5 \n \n-- \n \n-- \n \n32.0 \n \n40.0 \n \n97.5 \n \n-- \n \n35.0 \n \n40.0 \n \n35.0 \n \n-- \n \n35.0 \n \n35.0 \n \n35.0 \n \n-- \n \n-- \n \n35.0 \n \n35.0 \n \n35.0 \n \n-- \n \n100.0 \n \n100.0 \n \n100.0 \n \n100.0 95.0 95.0 40.0 35.0 35.0 \n100.0 \n \n70.0 40.0 40.0 35.0 35.0 35.0 100.0 \n \n70.0 55.0 65.0 40.0 35.0 35.0 100.0 \n \nNew Plan and GSEPS \n \nEarly Retirement \n \nNormal Retirement \n \nAge \n \nMen \n \n50 \n \n7.0 % \n \n52 \n \n7.0 \n \n55 \n \n7.0 \n \n57 \n \n8.0 \n \n60 \n \n-- \n \n62 \n \n-- \n \n65 \n \n-- \n \n67 \n \n-- \n \n70 \n \n-- \n \n75 \n \n-- \n \nWomen \n4.5 % 4.5 6.5 8.0 -- -- -- -- -- -- \n \nMen* \n70.0 % 70.0 60.0 50.0 25.0 40.0 32.0 32.0 30.0 100.0 \n \nWomen** \n50.0 % 45.0 50.0 40.0 30.0 40.0 35.0 32.0 30.0 100.0 \n \n*An additional 10% of active male New Plan and GSEPS members less than age 55 and 20% between ages 55-59, inclusive, are expected to retire in the year in which they attain 30 years of service. \n**An additional 20% of active female New Plan and GSEPS members less than age 60 are expected to retire in the year in which they attain 30 years of service. \n \n(continued) 97 \n \n Actuarial Section \n \nSummary of Actuarial Assumptions \n \nAnnual Rates of Retirement PSERS \n \nAge \n \nAnnual Rate of Retirement \n \n60 \n \n13.0 % \n \n61 \n \n13.0 \n \n62 \n \n22.0 \n \n63 \n \n17.5 \n \n64 \n \n17.0 \n \n65 \n \n28.0 \n \n66 \n \n27.0 \n \n67 \n \n23.0 \n \nAge \n68 69 70 71 72 73 74 75 \u0026 over \n \nAnnual Rate of Retirement \n23.0 % 26.0 27.0 27.0 27.0 27.0 27.0 100.0 \n \nGJRS LRS \n \nAge \n60 61 62 63-64 65-69 70-74 75 \n \nAnnual Rate of Retirement \n15.0 % 10.0 12.0 10.0 15.0 25.0 100.0 \n \nAge \n60 61 62 63 64 65 \n \nAnnual Rate of Retirment \n10.0 % 10.0 15.0 10.0 10.0 12.0 \n \nAge \n66 67 68 69 70-74 75 \n \nAnnual Rate of Retirement \n12.0 % 15.0 12.0 12.0 20.0 100.0 \n \nGMPF \n \nAge \n60 61 62 63 64 65 \u0026 over \n \nAnnual Rate of Retirement \n75.0 % 60.0 70.0 60.0 60.0 100.0 \n \n98 \n \n(continued) \n \n Actuarial Section \n \nSummary of Actuarial Assumptions \n \nAnnual Rates of Retirement SEAD-Active and SEAD-OPEB ERS Members \n \nOld Plan \n \nEarly Retirement \n \nAge 60 or 30 years \n \n34 years \n \nMore than 34 years \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \n50 \n \n2.0 % \n \n2.0 % \n \n7.5 % \n \n6.0 % 100.0 % \n \n100.0 % \n \n90.0 % \n \n100.0 % \n \n52 \n \n2.0 \n \n2.0 \n \n7.5 \n \n6.0 \n \n100.0 \n \n100.0 \n \n90.0 \n \n100.0 \n \n55 \n \n3.0 \n \n3.5 \n \n7.5 \n \n10.0 \n \n100.0 \n \n100.0 \n \n75.0 \n \n90.0 \n \n57 \n \n3.5 \n \n60 \n \n-- \n \n-- \n \n62 \n \n-- \n \n65 \n \n-- \n \n67 \n \n-- \n \n-- \n \n70 \n \n-- \n \n75 \n \n-- \n \n5.0 \n \n10.5 \n \n10.0 \n \n100.0 \n \n-- \n \n15.0 \n \n20.0 \n \n97.5 \n \n-- \n \n-- \n \n32.0 \n \n40.0 \n \n97.5 \n \n-- \n \n35.0 \n \n40.0 \n \n35.0 \n \n-- \n \n35.0 \n \n35.0 \n \n35.0 \n \n-- \n \n-- \n \n35.0 \n \n35.0 \n \n35.0 \n \n-- \n \n100.0 \n \n100.0 \n \n100.0 \n \n100.0 95.0 95.0 40.0 35.0 35.0 \n100.0 \n \n70.0 40.0 40.0 35.0 35.0 35.0 100.0 \n \n70.0 55.0 65.0 40.0 35.0 35.0 100.0 \n \nNew Plan and GSEPS \n \nEarly Retirement \n \nNormal Retirement \n \nAge \n \nMen \n \nWomen \n \nMen* \n \nWomen** \n \n50 \n \n7.0 % \n \n4.5 % \n \n70.0 % \n \n50.0 % \n \n52 \n \n7.0 \n \n4.5 \n \n70.0 \n \n45.0 \n \n55 \n \n7.0 \n \n6.5 \n \n60.0 \n \n50.0 \n \n57 \n \n8.0 \n \n60 \n \n-- \n \n-- \n \n62 \n \n-- \n \n65 \n \n-- \n \n67 \n \n-- \n \n-- \n \n70 \n \n-- \n \n75 \n \n-- \n \n8.0 \n \n50.0 \n \n-- \n \n25.0 \n \n-- \n \n-- \n \n40.0 \n \n-- \n \n32.0 \n \n-- \n \n32.0 \n \n-- \n \n-- \n \n30.0 \n \n-- \n \n100.0 \n \n40.0 30.0 40.0 35.0 32.0 30.0 100.0 \n \n*An additional 10% of active male New Plan and GSEPS members less than age 55 and 20% between ages 55-59, inclusive, are expected to retire in the year in which they attain 30 years of service. \n**An additional 20% of active female New Plan and GSEPS members less than age 60 are expected to retire in the year in which they attain 30 years of service. \nLRS Members \n \nAge 60 61 62 63-64 65-66 \n \nAnnual Rate of Retirement \n10.0 % 10.0 15.0 10.0 12.0 \n \nAge 67 68-69 70-74 75 \n \nAnnual Rate of Retirement \n15.0 % 12.0 20.0 100.0 \n \n(continued) 99 \n \n Actuarial Section \n \nSummary of Actuarial Assumptions \nAnnual Rates of Retirement SEAD-Active and SEAD-OPEB GJRS Members \n \nAge \n60 61 62 63-64 65-66 67 68-69 70-74 75 \n \nAnnual Rates of Retirement \n15.0 % 10.0 12.0 10.0 15.0 15.0 15.0 25.0 100.0 \n \n100 \n \n Actuarial Section \nSummary of Actuarial Assumptions \nAnnual Rates of Death After Retirement \nFor all plans except PSERS, the RP-2000 Combined Mortality Table (projected to 2025 with projection scale BB and set forward two years for both males and females) is used for the period after retirement and for dependent beneficiaries. The RP-2000 Disabled Mortality Table (projected to 2025 with projection scale BB and and set back seven years for males and set forward three years for females) is used for the period after disability retirement. For PSERS, the RP-2000 Blue-Collar Mortality Table (projected to 2025 with projection scale BB and set forward three years for males and two years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table (projected to 2025 with projection scale BB and set forward five years for both males and females) is used for the period after disability retirement. For all plans, there is a margin for future mortality improvement in the tables used by the Systems. \n \nERS PSERS GJRS \n \nAge \n \nMen \n \nWomen \n \n40 \n \n0.1127 % \n \n0.0790 % \n \n45 \n \n0.1609 \n \n0.1230 \n \n50 \n \n0.2474 \n \n0.1872 \n \n55 \n \n0.4246 \n \n0.2918 \n \n60 \n \n0.6985 \n \n0.4923 \n \nAge \n \nMen \n \nWomen \n \n65 \n \n1.1300 % 0.8994 % \n \n70 \n \n1.8697 \n \n1.5281 \n \n75 \n \n3.2147 \n \n2.5220 \n \n80 \n \n5.5160 \n \n4.1628 \n \n85 \n \n9.5631 \n \n7.1239 \n \nAge \n \nMen \n \nWomen \n \n40 \n \n0.1476 % \n \n0.0995 % \n \n45 \n \n0.1974 \n \n0.1484 \n \n50 \n \n0.3057 \n \n0.2084 \n \n55 \n \n0.5644 \n \n0.2844 \n \n60 \n \n0.9575 \n \n0.5014 \n \nAge \n \nMen \n \nWomen \n \n65 \n \n1.4859 % 0.9774 % \n \n70 \n \n2.4262 \n \n1.7054 \n \n75 \n \n3.9830 \n \n2.7288 \n \n80 \n \n6.5238 \n \n4.4542 \n \n85 \n \n10.9551 \n \n7.5727 \n \nAge \n \nMen \n \nWomen \n \n40 \n \n0.1127 % \n \n0.0790 % \n \n45 \n \n0.1609 \n \n0.1230 \n \n50 \n \n0.2474 \n \n0.1872 \n \n55 \n \n0.4246 \n \n0.2918 \n \n60 \n \n0.6985 \n \n0.4923 \n \nAge \n \nMen \n \nWomen \n \n65 \n \n1.1300 % 0.8994 % \n \n70 \n \n1.8697 \n \n1.5281 \n \n75 \n \n3.2147 \n \n2.5220 \n \n80 \n \n5.5160 \n \n4.1628 \n \n85 \n \n9.5631 \n \n7.1239 \n \n(continued) 101 \n \n Actuarial Section \n \nSummary of Actuarial Assumptions \n \nAnnual Rates of Death After Retirement LRS \n \nAge \n \nMen \n \nWomen \n \n40 \n \n0.1127 % \n \n0.0790 % \n \n45 \n \n0.1609 \n \n0.1230 \n \n50 \n \n0.2474 \n \n0.1872 \n \n55 \n \n0.4246 \n \n0.2918 \n \n60 \n \n0.6985 \n \n0.4923 \n \nAge \n \nMen \n \nWomen \n \n65 \n \n1.1300 % 0.8994 % \n \n70 \n \n1.8697 \n \n1.5281 \n \n75 \n \n3.2147 \n \n2.5220 \n \n80 \n \n5.5160 \n \n4.1628 \n \n85 \n \n9.5631 \n \n7.1239 \n \nGMPF \n \nAge \n \nMen \n \nWomen \n \n40 \n \n0.1127 % \n \n0.0790 % \n \n45 \n \n0.1609 \n \n0.1230 \n \n50 \n \n0.2474 \n \n0.1872 \n \n55 \n \n0.4246 \n \n0.2918 \n \n60 \n \n0.6985 \n \n0.4923 \n \nAge \n \nMen \n \nWomen \n \n65 \n \n1.1300 % 0.8994 % \n \n70 \n \n1.8697 \n \n1.5281 \n \n75 \n \n3.2147 \n \n2.5220 \n \n80 \n \n5.5160 \n \n4.1628 \n \n85 \n \n9.5631 \n \n7.1239 \n \nSEAD-OPEB \n \nAge \n \nMen \n \nWomen \n \n40 \n \n0.1127 % \n \n0.0790 % \n \n45 \n \n0.1609 \n \n0.1230 \n \n50 \n \n0.2474 \n \n0.1872 \n \n55 \n \n0.4246 \n \n0.2918 \n \n60 \n \n0.6985 \n \n0.4923 \n \nAge \n \nMen \n \nWomen \n \n65 \n \n1.1300 % 0.8994 % \n \n70 \n \n1.8697 \n \n1.5281 \n \n75 \n \n3.2147 \n \n2.5220 \n \n80 \n \n5.5160 \n \n4.1628 \n \n85 \n \n9.5631 \n \n7.1239 \n \n102 \n \n Active Members \nERS \n \nActuarial Section \n \nYear 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nActive Members 74,089 73,985 75,293 71,272 68,566 66,081 63,942 61,550 60,486 60,416 \n \nAnnual Payroll (in thousands) \n \n$ \n \n2,630,167 \n \n2,680,972 \n \n2,809,199 \n \n2,674,155 \n \n2,571,042 \n \n2,486,780 \n \n2,414,884 \n \n2,335,773 \n \n2,315,625 \n \n2,352,920 \n \nAverage Pay \n \n$ \n \n35,500 \n \n36,237 \n \n37,310 \n \n37,520 \n \n37,497 \n \n37,632 \n \n37,767 \n \n37,949 \n \n38,284 \n \n38,945 \n \nChange 2.7 % 2.1 3.0 0.6 (0.1) 0.4 0.4 0.5 0.9 1.7 \n \nPSERS PSERS is not a compensation based plan. \n \nYear \n2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nActive Members \n37,587 39,086 40,121 40,581 39,962 39,249 38,654 37,361 36,096 35,477 \n \nGJRS \n \nYear 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nActive Members 478 480 482 502 495 507 503 506 513 516 \n \nAnnual Payroll (in thousands) \n \n$ \n \n45,308 \n \n48,621 \n \n51,102 \n \n52,083 \n \n51,293 \n \n52,331 \n \n51,898 \n \n52,807 \n \n53,628 \n \n54,272 \n \nAverage Pay $ 94,787 \n101,294 106,021 103,751 103,622 103,216 103,177 104,362 104,539 105,178 \n \nChange 3.4 % 6.9 4.7 (2.1) (0.1) (0.4) (0.0) 1.1 0.2 0.6 \n \n103 \n \n(continued) \n \n Active Members \nLRS LRS is not a compensation based plan. \n \nActuarial Section \n \nYear \n2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nActive Members \n218 218 218 218 216 218 220 223 222 218 \n \nGMPF GMPF is not a compensation based plan. \n \nYear \n2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nActive Members \n10,320 12,017 11,623 12,019 13,032 13,776 13,526 13,573 13,469 13,754 \n \nSEAD-Active and SEAD-OPEB \nSEAD-Active and SEAD-OPEB began in 2007. \n \nYear \n2008 2009 2010 2011 2012 2013 2014 2015 \n \nActive Members \n75,859 69,745 62,305 55,516 49,261 43,512 39,101 35,189 \n \nNote: Payroll data on page 103 for fiscal year 2015 will not equal that which is presented in the Financial section in the Schedules of Employers' and Nonemployers' Contributions on pages 55-56. Valuation data at that time was a snapshot of the valuation date, annualized for new hires, but does not include those who terminated during the year. \n \n104 \n \n Actuarial Section \n \nMember and Employer Contribution Rates \nERS \n \nYear \n2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nMember \n1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% \n \nEmployer Rates \n \nOld Plan* \n \nNew Plan \n \n10.41% 10.41% 10.41% 10.41% 10.41% 11.63% 14.90% 18.46% 21.96% 24.72% \n \n10.41% 10.41% 10.41% 10.41% 10.41% 11.63% 14.90% 18.46% 21.96% 24.72% \n \nGSEPS** \nn/a n/a 6.54% 6.54% 6.54% 7.42% 11.54% 15.18% 18.87% 21.69% \n \n* Old Plan Rate includes an employer pick-up of employee contributions. ** GSEPS Plan began on January 1, 2009 \n \nPSERS \n \nYear \n2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nPre 7/1/12 Member \n$ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year \n \nPost 7/1/12 Member \n$ 90 per year $ 90 per year $ 90 per year $ 90 per year \n \nEmployer \n \n$ \n \n6,484,000 \n \n2,866,000 \n \n5,680,000 \n \n5,529,000 \n \n7,509,000 \n \n15,884,000 \n \n24,829,000 \n \n27,160,000 \n \n28,461,000 \n \n28,580,000 \n \nGJRS \n \nYear \n2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nMember 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% \n105 \n \nEmployer \n3.85% 3.85% 3.85% 3.85% 3.85% 3.90% 3.90% 4.23% 6.98% 12.19%I) \n \n(continued) \n \n Member and Employer Contribution Rates \nLRS \nYear 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nActuarial Section \n \nMember \n8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% \n \nEmployer \n \n$ \n \n62,000 \n \n73,000 \n \n71,000 \n \n75,000 \n \n75,000 \n \n75,000 \n \n128,000 \n \n45,000 \n \n0 \n \n0 \n \nGMPF SEAD-Active* \n \nYear \n2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nMember \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n \nEmployer \n$ 1,005,000 1,103,000 1,323,000 1,434,000 1,282,000 1,521,000 1,703,000 1,892,000 1,893,369 1,989,530 \n \nYear \n2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nMember - Old Plan \n0.05% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05% \n \nMember - New Plan, LRS, GJRS \n0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% \n \nEmployer \n0% 0% 0% 0% 0% 0% 0% 0% 0% \n \n106 \n \n(continued) \n \n Actuarial Section \n \nMember and Employer Contribution Rates \nSEAD-OPEB* \n \nYear \n2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nMember - Old Plan \n0.45% 0.45% 0.45% 0.45% 0.45% 0.45% 0.45% 0.45% 0.45% \n \nMember - New Plan, LRS, GJRS \n0.23% 0.23% 0.23% 0.23% 0.23% 0.23% 0.23% 0.23% 0.23% \n \nEmployer \n0% 0% 0% 0% 0.61% 0.27% 0% 0% 0% \n \n*SEAD-Active and SEAD-OPEB began in 2007. \n \n107 \n \n Actuarial Section \nSchedules of Funding Progress - Defined Benefit Pension Plans \n(Dollar amounts in thousands) \n(continued) 108 \n \nEmployees' Retirement System Public School Employees Retirement System Legislative Retirement System Georgia Judicial Retirement System \n \nActuarial valuation \ndate \n6/30/2006 6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 \n6/30/2006 6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 \n6/30/2006 6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 \n6/30/2006 6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 \n \nActuarial value of plan assets \n(a) \n$ 13,461,132 13,843,689 14,017,346 13,613,606 13,046,193 12,667,557 12,260,595 12,129,804 12,376,120 12,675,649 \n766,277 785,460 791,855 769,618 737,406 719,601 710,915 727,268 765,450 805,277 \n29,172 30,049 30,706 30,303 29,581 29,278 28,990 29,481 30,538 31,635 \n279,564 297,090 313,315 317,624 320,050 327,483 335,225 351,889 373,560 396,399 \n \nActuarial accrued liablility (AAL) entry age (b) \n14,242,845 14,885,179 15,680,857 15,878,022 16,295,352 16,656,905 16,777,922 16,982,449 16,991,963 17,099,527 \n691,651 746,078 770,950 823,232 875,396 885,927 895,324 910,256 924,365 967,409 \n23,407 24,357 24,454 23,523 25,003 25,245 24,966 24,904 24,913 25,690 \n229,837 249,278 268,516 282,474 281,496 290,486 308,862 335,792 343,428 350,298 \n \nUnfunded AAL/ (funded excess) \n(b-a) \n781,713 1,041,490 1,663,511 2,264,416 3,249,159 3,989,348 4,517,327 4,852,645 4,615,843 4,423,878 \n(74,626) (39,382) (20,905) \n53,614 137,990 166,326 184,409 182,988 158,915 162,132 \n(5,765) (5,692) (6,252) (6,780) (4,578) (4,033) (4,024) (4,577) (5,624) (5,945) \n(49,727) (47,812) (44,799) (35,150) (38,554) (36,997) (26,363) (16,097) (30,132) (46,101) \n \nFunded ratio (a/b) \n94.5 % 93.0 89.4 85.7 80.1 76.0 73.1 71.4 72.8 74.1 \n110.8 105.3 102.7 \n93.5 84.2 81.2 79.4 79.9 82.8 83.2 \n124.6 123.4 125.6 128.8 118.3 116.0 116.1 118.4 122.6 123.1 \n121.6 119.2 116.7 112.4 113.7 112.7 108.5 104.8 108.8 113.2 \n \nAnnual covered payroll \n(c) \n$ 2,630,167 2,680,972 2,809,199 2,674,155 2,571,042 2,486,780 2,414,884 2,335,773 2,315,625 2,352,920 \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \n3,602 3,688 3,778 3,780 3,745 3,780 3,815 3,867 3,850 3,764 \n45,308 48,621 51,102 52,083 51,293 52,331 51,898 52,807 53,628 54,272 \n \nUnfunded AAL/ (funded excess) as percentage of covered payroll \n[(b-a)/c] \n29.7 % 38.8 59.2 84.7 126.4 160.4 187.1 207.8 199.3 188.0 \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \n(160.0) (154.3) (165.5) (179.4) (122.2) (106.7) (105.5) (118.4) (146.1) (157.9) \n(109.8) (98.3) (87.7) (67.5) (75.2) (70.7) (50.8) (30.5) (56.2) (84.9) \n \n Actuarial Section \nSchedules of Funding Progress - Defined Benefit Pension Plans \n(Dollar amounts in thousands) \n109 \n \nGeorgia Military Pension Fund  \n \nActuarial valuation \ndate \n6/30/2006 6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 \n \nActuarial value of plan assets \n(a) \n \n$ \n \n3,100 \n \n4,165 \n \n5,269 \n \n6,413 \n \n7,558 \n \n8,702 \n \n10,087 \n \n12,131 \n \n14,264 \n \n16,446 \n \nActuarial accrued liability (AAL) entry-age \n(b) \n17,625 19,887 19,124 21,021 23,773 26,767 28,231 30,056 31,815 35,213 \n \nUnfunded AAL/ (funded excess) \n(b-a) \n14,525 15,722 13,855 14,608 16,215 18,065 18,144 17,925 17,551 18,767 \n \nFunded ratio (a/b) \n17.6 % 20.9 27.6 30.5 31.8 32.5 35.7 40.4 44.8 46.7 \n \nAnnual covered payroll \n(c) \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \n \nThis data, except for annual covered payroll, was provided by the System's actuary. \n No statistics regarding covered payroll are available. Contributions are not based on members' salaries, but are simply $4.00 per month, per member for nine months each fiscal year if hired prior to July 1, 2012 and $10 per month, per member for nine months if hired after July 1, 2012.  No statistics regarding covered payroll are available. Active and inactive plan member information is maintained by the Georgia Department of Defense. \n \nUnfunded AAL/ (funded excess) as percentage of covered payroll \n[(b-a)/c] \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \n \nSee accompanying notes to required supplementary schedules and accompanying independent auditors' report. \nNote: Payroll data on page 108 for fiscal year 2015 will not equal that which is presented in the Financial section in the Schedules of Employers' and Nonemployers' Contributions on pages 55-56. Valuation data at that time was a snapshot of the valuation date, annualized for new hires, but does not include those who terminated during the year. \n \n Actuarial Section \nSchedule of Retirees Added to and Removed from Rolls \nERS \n \nAdded to Rolls \n \nRemoved from Rolls \n \nRoll End of Year \n \nYear Ended \n2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nNumber \n2,338 2,410 2,422 2,444 2,665 2,797 2,956 3,664 2,440 2,656 \n \nAnnual Allowances (in thousands) Number \n \nAnnual Allowances (in thousands) \n \nNumber \n \n$ \n \n84,982 \n \n854 $ \n \n114,719 \n \n1,075 \n \n82,644 \n \n1,017 \n \n85,329 \n \n1,055 \n \n70,383 \n \n1,051 \n \n69,031 \n \n1,170 \n \n71,464 \n \n1,305 \n \n88,855 \n \n1,176 \n \n51,178 \n \n1,059 \n \n54,003 \n \n1,350 \n \n16,270 20,598 21,299 20,194 22,413 25,347 27,696 26,334 22,997 30,927 \n \n32,839 34,174 35,579 36,968 38,582 40,209 41,860 44,348 45,729 47,035 \n \nAnnual Allowances (in thousands) \n \n$ \n \n842,157 \n \n936,278 \n \n997,623 \n \n1,062,758 \n \n1,110,728 \n \n1,154,412 \n \n1,198,180 \n \n1,260,701 \n \n1,288,882 \n \n1,311,958 \n \n% Increase in Annual Allowance \n8.9 % 11.2 6.6 6.5 4.5 3.9 3.8 5.2 2.2 1.8 \n \nAverage Annual Allowances \n$ 25,645 27,397 28,040 28,748 28,789 28,710 28,624 28,427 28,185 27,893 \n \nPSERS \n \nAdded to Rolls \n \nRemoved from Rolls \n \nRoll End of Year \n \nYear Ended \n2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nNumber \n870 816 899 886 1,001 1,174 1,133 1,298 1,345 1,247 \n \nAnnual Allowances (in thousands) Number \n \n$ \n \n4,835 531 \n \n4,749 637 \n \n4,514 605 \n \n5,290 575 \n \n4,494 642 \n \n3,168 731 \n \n3,192 684 \n \n3,803 650 \n \n3,749 647 \n \n3,482 690 \n \nAnnual Allowances (in thousands) \n \nNumber \n \n$ \n \n1 ,885 13,014 \n \n2,353 13,193 \n \n2,371 13,487 \n \n2,260 13,798 \n \n2,666 14,157 \n \n3,072 14,600 \n \n2,834 15,049 \n \n2,738 15,697 \n \n2,604 16,395 \n \n2,679 16,952 \n \nAnnual Allowances (in thousands) \n \n$ \n \n44,266 \n \n46,662 \n \n48,805 \n \n51,835 \n \n53,663 \n \n53,759 \n \n54,117 \n \n55,182 \n \n56,327 \n \n57,130 \n \n% Increase in Annual Allowance \n7.1 % 5.4 4.6 6.2 3.5 0.2 0.7 2.0 2.1 1.4 \n \nAverage Annual Allowances \n$ 3,401 3,537 3,619 3,757 3,791 3,682 3,596 3,515 3,436 3,370 \n \nGJRS \n \nAdded to Rolls \n \nRemoved from Rolls \n \nRoll End of Year \n \nYear Ended \n2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nNumber \n5 13 14 29 16 15 22 42 23 21 \n \nAnnual Allowances (in thousands) Number \n \n$ \n \n144 \n \n14 \n \n853 \n \n7 \n \n902 \n \n7 \n \n2,238 \n \n6 \n \n933 \n \n10 \n \n1,168 \n \n2 \n \n1,732 \n \n8 \n \n2,763 \n \n13 \n \n1,175 \n \n9 \n \n1,416 \n \n11 \n \nAnnual Allowances (in thousands) \n \nNumber \n \n$ \n \n687 165 \n \n297 171 \n \n410 178 \n \n191 201 \n \n508 207 \n \n105 220 \n \n405 234 \n \n629 263 \n \n326 277 \n \n561 287 \n \nAnnual Allowances (in thousands) \n \n$ \n \n8,917 \n \n9,473 \n \n9,965 \n \n12,012 \n \n12,437 \n \n13,500 \n \n14,827 \n \n16,961 \n \n17,810 \n \n18,665 \n \n% Increase in Annual Allowance \n(5.7) % 6.2 5.2 20.5 3.5 8.5 9.8 14.4 5.0 4.8 \n \nAverage Annual Allowances \n$ 54,042 55,398 55,983 59,761 60,082 61,364 63,363 64,490 64,296 65,035 \n \n(continued) 110 \n \n Actuarial Section \nSchedule of Retirees Added to and Removed from Rolls \nLRS \n \nAdded to Rolls \n \nRemoved from Rolls \n \nRoll End of Year \n \nYear Ended \n2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nNumber \n13 17 13 10 10 18 10 32 6 13 \n \nAnnual Allowances (in thousands) Number \n \n$ \n \n103 \n \n21 \n \n151 \n \n9 \n \n130 \n \n11 \n \n117 \n \n7 \n \n106 \n \n3 \n \n104 \n \n10 \n \n66 \n \n11 \n \n200 \n \n15 \n \n30 \n \n7 \n \n87 \n \n12 \n \nAnnual Allowances (in thousands) \n \nNumber \n \n$ \n \n165 216 \n \n74 224 \n \n100 226 \n \n54 229 \n \n36 236 \n \n86 244 \n \n82 243 \n \n140 260 \n \n61 259 \n \n112 260 \n \nAnnual Allowances (in thousands) \n \n$ \n \n1,532 \n \n1,609 \n \n1,639 \n \n1,702 \n \n1,772 \n \n1,790 \n \n1,774 \n \n1,834 \n \n1,803 \n \n1,778 \n \n% Increase in Annual Allowance \n(3.9) % 5.0 1.9 3.8 4.1 1.0 (0.9) 3.4 (1.7) (1.4) \n \nAverage Annual Allowances \n$ 7,093 7,183 7,252 7,432 7,508 7,336 7,300 7,054 6,961 6,838 \n \nGMPF \n \nAdded to Rolls \n \nRemoved from Rolls \n \nRoll End of Year \n \nYear Ended \n2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nNumber \n61 73 71 85 92 94 95 83 62 54 \n \nAnnual Allowances (in thousands) Number \n \n$ \n \n69 \n \n1 \n \n83 \n \n1 \n \n76 \n \n2 \n \n91 \n \n3 \n \n100 \n \n1 \n \n101 \n \n3 \n \n106 \n \n3 \n \n87 \n \n5 \n \n68 \n \n5 \n \n55 \n \n6 \n \nAnnual Allowances (in thousands) \n \nNumber \n \n$ \n \n1 163 \n \n1 235 \n \n2 304 \n \n4 386 \n \n1 477 \n \n4 568 \n \n3 660 \n \n5 738 \n \n6 795 \n \n5 843 \n \nAnnual Allowances (in thousands) \n \n$ \n \n178 \n \n260 \n \n334 \n \n421 \n \n520 \n \n617 \n \n720 \n \n802 \n \n864 \n \n914 \n \n% Increase in Annual Allowance \n61.8 % 46.1 28.5 26.0 23.5 18.7 16.7 11.4 \n7.7 5.8 \n \nAverage Annual Allowances \n$ 1,092 1,106 1,099 1,091 1,090 1,086 1,091 1,087 1,087 1,084 \n \nSEAD-Active and SEAD-OPEB are life insurance plans which do not have annuity payments. \n \n111 \n \n Actuarial Section \nAnalysis of Change in Unfunded Accrued Liability (UAL) \n(continued) 112 \n \n2015 \n \n2014 \n \n2013 \n \n2012 \n \n2011 \n \n2010 \n \n2009 \n \n2008 \n \n2007 \n \n2006 \n \nERS \n \nInterest (7.50) added to \n \n$ \n \nprevious UAL \n \nAccrued liability contribution \n \nExperience: Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Salary increases Method changes Amendments (COLAs) Assumption changes Lawsuit Programming modification Data changes Misc. changes \n \nTotal \n \n$ \n \n346.2 $ \n(419.4) \n(198.9) 13.9 50.8 10.3 (89.6) 0.0 0.0 80.4 0.0 0.0 14.4 (0.1) \n(192.0) $ \n \n363.9 $ \n(321.7) \n(228.9) 60.4 45.5 9.3 \n(159.4) 0.0 0.0 0.0 0.0 0.0 (6.0) 0.1 \n(236.8) $ \n \n338.8 $ \n(239.1) \n253.7 20.6 \n103.7 14.1 (46.8) \n(128.3) 0.0 0.0 0.0 0.0 \n18.7 (0.1) \n335.3 $ \n \nAmount of Increase (Decrease) (in Millions) \n \n299.2 $ \n \n243.7 $ \n \n169.8 $ \n \n124.8 $ \n \n(147.7) \n396.3 15.5 93.8 12.1 (74.2) 0.0 \n(118.8) 0.0 0.0 \n26.3 12.9 12.6 \n528.0 $ \n \n(122.9) \n433.6 16.4 91.4 28.4 49.0 0.0 0.0 0.0 0.0 (28.7) 9.1 20.2 \n740.2 $ \n \n(89.4) \n710.1 49.2 118.4 15.0 \n(259.2) 0.0 0.0 \n250.7 0.0 0.0 (2.4) \n22.5 \n984.7 $ \n \n(99.7) \n609.1 65.4 \n107.3 16.7 \n(296.9) 0.0 \n(358.6) 0.0 \n75.9 0.0 \n270.5 86.4 \n600.9 $ \n \n78.1 $ \n(86.3) \n129.3 51.3 \n103.0 22.9 (22.7) 0.0 \n188.8 0.0 0.0 0.0 0.0 \n157.6 \n622.0 $ \n \nPSERS Interest (7.50) added to previous UAL \nAccrued liability contribution \n \n$ 11,918.7 $ 13,724.1 $ 13,830.7 $ \n \n(17,704.8) \n \n(15,915.4) \n \n(12,497.7) \n \nAmount of Increase (Decrease) (in Thousands) \n \n12,474.4 $ 10,349.3 $ 4,021.0 $ (1,567.9) $ \n \n(4,843.8) \n \n4,022.8 \n \n6,403.4 \n \n5,026.0 \n \n(2,953.7) $ 7,267.0 \n \n58.6 $ \n(35.3) \n(59.5) 51.0 115.7 35.7 (33.2) \n0.0 5.9 0.0 0.0 0.0 0.0 120.9 259.8 $ \n(5,596.9) $ \n4,729.2 \n \n28.4 \n7.4 \n140.2 50.1 28.1 34.4 (84.2) (69.0) \n245.2 0.0 0.0 0.0 0.0 \n22.8 403.4 \n(6,204.6) \n6,961.2 \n \nExperience: Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Method changes Amendments No COLAs Assumption changes Lawsuit Data changes Allotment for expenses Misc. changes \nTotal \n \n(12,207.0) 414.9 \n2,618.5 2,875.9 \n0.0 0.0 (14,772.9) 30,030.0 0.0 0.0 0.0 43.0 \n \n(14,071.0) 1,286.7 2,580.8 2,786.0 0.0 0.0 \n(14,398.9) 0.0 0.0 0.0 0.0 \n(64.9) \n \n13,868.0 (381.9) \n4,772.4 2,757.7 (9,259.0) \n0.0 (14,813.1) \n0.0 0.0 0.0 0.0 301.7 \n \n21,922.0 (1,149.5) 4,974.5 2,783.8 \n0.0 0.0 (20,664.9) 0.0 0.0 0.0 0.0 2,586.9 \n \n24,002.0 (3,000.5) 3,403.6 3,167.0 \n0.0 0.0 (16,603.6) 0.0 0.0 0.0 2,122.7 872.4 \n \n39,729.0 (828.9) \n12,375.8 3,047.8 0.0 0.0 \n(14,121.2) 33,717.7 \n0.0 (2,192.3) 2,029.0 \n195.0 \n \n$ 3,216.3 $ (24,072.6) $ 1,421.2 $ 18,083.4 $ 28,335.7 $ 84,376.3 $ \n \n34,015.0 973.7 \n6,201.3 3,267.7 \n0.0 0.0 0.0 0.0 2,168.0 24,199.5 433.0 (197.3) \n \n6,623.0 420.3 \n3,381.4 4,021.0 \n0.0 0.0 0.0 0.0 0.0 0.0 0.0 (281.8) \n \n74,519.0 $ 18,477.2 $ \n \n(3,737.0) (320.5) \n1,053.3 3,556.9 \n0.0 0.0 36,404.3 0.0 0.0 0.0 0.0 (846.1) \n35,243.2 $ \n \n7,359.0 1,146.2 (1,717.5) 4,151.6 (3,594.0) \n0.0 0.0 0.0 0.0 0.0 0.0 0.0 \n8,101.9 \n \n Actuarial Section \nAnalysis of Change in Unfunded Accrued Liability (UAL) \n(continued) 113 \n \n2015 \n \n2014 \n \n2013 \n \n2012 \n \n2011 \n \n2010 \n \n2009 \n \n2008 \n \n2007 \n \n2006 \n \nGJRS \n \nInterest (7.50) added to \n \n$ \n \nprevious UAL \n \nAccrued liability contribution \n \n(2,259.9) $ 3,754.1 \n \n(1,207.3) $ 5,803.3 \n \n(1,977.2) $ 5,187.8 \n \nAmount of Increase (Decrease) (in Thousands) \n \n(2,774.8) $ (2,891.5) $ (2,636.2) $ (3,360.0) $ (3,585.9) $ \n \n4,710.8 \n \n4,079.8 \n \n4,592.1 \n \n3,596.2 \n \n4,498.3 \n \n(3,729.5) $ 3,953.2 \n \n(3,889.8) 6,928.7 \n \nExperience: Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Salary increases Method changes Amendments (COLAs) Assumption changes Data changes Programming modification Misc. changes \n \n(5,855.8) 639.6 (370.0) \n1,539.1 (8,848.5) \n0.0 0.0 (5,030.9) 0.0 0.0 464.1 \n \n(6,807.0) 2,138.5 (5,962.8) 1,272.3 (10,382.5) \n0.0 0.0 0.0 0.0 0.0 1,110.1 \n \nTotal \n \n$ (15,968.2) $ (14,035.4) $ \n \n4,949.6 533.8 \n3,941.4 3,138.0 (4,620.6) (6,827.0) \n0.0 0.0 0.0 4,606.4 1,333.8 \n10,266.0 $ \n \n8,638.5 376.9 \n2,080.7 442.3 \n(4,536.5) 0.0 \n(870.0) 0.0 0.0 \n1,648.9 917.5 \n \n9,404.0 2,076.8 \n(276.3) 750.1 1,265.9 \n0.0 0.0 0.0 0.0 0.0 (12,852.1) \n \n16,228.0 560.9 \n2,290.6 0.0 \n(10,213.5) 0.0 0.0 \n(14,826.5) 579.1 0.0 21.3 \n \n13,941.0 1,102.3 1,982.9 967.2 \n(10,561.2) 0.0 \n(2,359.4) 0.0 \n4,581.2 0.0 \n(240.6) \n \n3,164.0 409.3 \n1,243.3 354.2 \n(3,432.4) 0.0 \n1,265.0 0.0 0.0 0.0 \n(903.4) \n \n10,634.3 $ 1,556.7 $ (3,404.2) $ 9,649.6 $ 3,102.3 $ \n \n(1,026.0) (154.4) \n(1,614.7) 659.5 369.8 0.0 24.1 0.0 0.0 0.0 \n3,433.5 \n1,915.5 $ \n \n3,464.0 709.7 \n1,649.8 322.6 \n(3,293.9) (1,738.0) 2,383.8 \n0.0 0.0 0.0 (4,400.5) \n2,136.4 \n \nLRS \n \nInterest (7.50) added to \n \n$ \n \nprevious UAL \n \nAccrued liability contribution \n \n(421.9) $ 173.4 \n \n(343.3) $ 161.9 \n \n(301.8) $ (62.4) \n \nAmount of Increase (Decrease) (in Thousands) \n \n(302.5) $ \n \n(343.4) $ \n \n(508.5) $ \n \n(468.9) $ (426.9) $ \n \n33.9 \n \n107.1 \n \n(32.5) \n \n(21.1) \n \n(26.3) \n \n(432.3) $ (31.1) \n \n(369.8) (43.1) \n \nExperience: Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Method changes Amendments No COLAs Assumption changes Data changes Misc. changes \n \nTotal \n \n$ \n \n(491.6) (50.8) (10.1) 35.1 0.0 0.0 \n(452.6) 852.3 \n0.0 46.2 \n(320.0) $ \n \n(576.5) 323.8 (347.5) 135.2 \n0.0 0.0 (470.8) 0.0 0.0 69.9 \n(1,047.3) $ \n \n513.9 (29.6) 17.4 144.5 (418.0) (488.1) \n0.0 0.0 0.0 71.1 \n(553.1) $ \n \n829.0 19.1 (84.3) 16.9 0.0 \n(549.7) 0.0 0.0 0.0 \n46.4 \n8.8 $ \n \n906.2 (18.7) 254.5 74.0 \n0.0 (481.8) \n0.0 0.0 0.0 46.9 \n544.9 $ \n \n1,534.0 339.2 105.1 98.8 0.0 (465.3) 0.0 975.2 114.8 41.6 \n2,202.4 $ \n \n1,307.4 240.7 (5.7) 0.0 0.0 0.0 0.0 0.0 \n(1,529.1) (51.7) \n(528.4) $ \n \n241.7 (2.2) \n(429.8) 35.9 0.0 0.0 0.0 0.0 0.0 47.4 \n(560.2) $ \n \n(155.0) 119.4 423.8 \n0.0 0.0 0.0 0.0 0.0 0.0 147.9 \n72.7 $ \n \n289.0 (412.7) (154.7) \n0.0 (142.0) \n0.0 0.0 0.0 0.0 0.0 \n(833.3) \n \n Actuarial Section \nAnalysis of Change in Unfunded Accrued Liability (UAL) \n114 \n \nGMPF* \nInterest (7.50) added to previous UAL \nAccrued liability contribution \nExperience: Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Method changes Assumption changes Expense Deficit Misc. changes \nTotal \n \n2015 \n \n2014 \n \n2013 \n \n2012 \n \n2011 \n \nAmount of Increase (Decrease) (in Thousands) \n \n$ 1,316.3 $ \n \n1,344.3 $ \n \n1,360.8 $ \n \n1,354.9 $ \n \n1,216.1 \n \n(1,765.6) \n \n(1,775.3) \n \n(1,661.5) \n \n(1,502.4) \n \n(1,173.3) \n \n(203.0) 126.1 120.5 236.9 \n0.0 985.8 \n0.0 398.7 \n$ 1,215.7 $ \n \n(247.0) 88.8 (87.9) \n142.6 0.0 0.0 0.0 \n161.1 \n(373.4) $ \n \n39.3 80.2 186.4 137.8 (393.0) \n0.0 0.0 30.6 \n(219.4) $ \n \n107.0 68.3 17.9 \n127.1 0.0 0.0 0.0 \n(93.6) \n79.2 $ \n \n113.8 58.5 205.4 1,469.6 \n0.0 0.0 37.0 (77.0) \n1,850.1 \n \n*Note: Data prior to 2011 is not available for GMPF. \n \nSEAD-Active and SEAD-OPEB: Data is not available. \n \n Actuarial Section \n \nSolvency Test Results \n(Dollar amounts in thousands) \nERS  \n \nActuarial Valuation as of 7/1 \n2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n \nRetirants \u0026 Beneficiaries \n \nActive Member (Employer \nFunded Portion) \n \nValuation Assets \n \n(1) \n \n(2) \n \n$ 672,679 $ 8,462,884 $ \n \n645,907 \n \n9,020,890 \n \n616,177 \n \n9,756,529 \n \n589,012 \n \n10,034,939 \n \n551,607 \n \n10,652,040 \n \n503,867 \n \n11,058,344 \n \n460,861 \n \n11,420,011 \n \n405,841 \n \n11,935,364 \n \n385,058 \n \n12,108,737 \n \n367,462 \n \n12,520,321 \n \n(3) \n \n5,107,282 $ 12,376,120 \n \n5,218,382 \n \n13,843,689 \n \n5,308,151 \n \n14,017,346 \n \n5,254,071 \n \n13,613,606 \n \n5,091,705 \n \n13,046,193 \n \n5,094,694 \n \n12,667,557 \n \n4,897,050 \n \n12,260,595 \n \n4,641,244 \n \n12,129,803 \n \n4,498,168 \n \n12,376,120 \n \n4,211,744 \n \n12,675,649 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \n(2) \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n98.2% 99.0% 98.3% \n \n(3) \n84.7% 80.0% 68.7% 56.9% 36.2% 21.7% \n7.8% 0.0% 0.0% 0.0% \n \nPSERS  \n \nActuarial Valuation as of 7/1 \n2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n \nRetirants \u0026 Beneficiaries \n \nActive Member (Employer \nFunded Portion) \n \nValuation Assets \n \n(1) \n$ 14,321 $ 14,796 15,285 15,862 16,361 16,627 16,917 17,016 16,995 17,196 \n \n(2) \n428,543 $ 456,868 469,601 506,659 528,808 532,509 537,284 549,796 566,344 585,471 \n \n(3) \n248,787 $ 274,414 286,064 300,711 330,227 336,790 341,123 343,444 341,026 364,742 \n \n766,277 785,460 791,855 769,618 737,406 719,601 710,915 727,268 765,450 805,277 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \n(2) \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \n(3) \n100.0% 100.0% 100.0% \n82.2% 58.2% 50.6% 45.9% 46.7% 53.4% 55.5% \n \nGJRS  \n \nActuarial Valuation as of 7/1 \n2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n(1) \n$ 48,896 52,707 59,838 61,188 67,293 71,047 73,998 73,949 80,007 84,170 \n \nRetirants \u0026 Beneficiaries \n \nActive Member (Employer \nFunded Portion) \n \n(2) \n \n(3) \n \n$ \n \n86,194 $ \n \n87,333 \n \n90,601 \n \n108,923 \n \n117,730 \n \n128,991 \n \n141,880 \n \n162,364 \n \n162,527 \n \n174,147 \n \n94,747 109,238 118,077 112,363 \n96,473 90,440 92,984 99,479 100,894 91,981 \n \nValuation Assets \n$ 279,564 297,090 313,315 317,624 320,050 327,483 335,225 351,889 373,560 396,399 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \n(2) \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \n(3) \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \n(continued) 115 \n \n Actuarial Section \n \nSolvency Test Results \n(Dollar amounts in thousands) \nLRS  \n \nActuarial Valuation as of 7/1 \n2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n(1) \n$ 2,507 2,484 2,853 2,908 3,166 2,921 3,185 2,951 3,430 3,287 \n \nRetirants \u0026 Beneficiaries \n \nActive Member (Employer \nFunded Portion) \n \n(2) \n \n(3) \n \n$ 18,734 $ 19,847 19,366 18,465 19,208 19,759 19,200 19,623 19,006 19,873 \n \n2,166 2,026 2,235 2,150 2,629 2,564 2,581 2,330 2,477 2,530 \n \nValuation Assets \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n \n(2) \n \n(3) \n \n$ 29,172 100.0% 100.0% 100.0% 30,049 100.0% 100.0% 100.0% 30,706 100.0% 100.0% 100.0% 30,303 100.0% 100.0% 100.0% 29,581 100.0% 100.0% 100.0% 29,278 100.0% 100.0% 100.0% 28,990 100.0% 100.0% 100.0% 29,481 100.0% 100.0% 100.0% 30,538 100.0% 100.0% 100.0% 31,635 100.0% 100.0% 100.0% \n \nGMPF  \n \nActuarial Valuation as of 7/1 \n2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n \n(1) \n \n$ \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \nRetirants \u0026 Beneficiaries \n \nActive Member (Employer \nFunded Portion) \n \n(2) \n$ 6,392 7,655 9,449 \n12,742 14,015 15,379 17,518 19,396 21,389 24,075 \n \n(3) \n$ 11,233 12,232 9,675 8,279 9,758 11,388 10,713 10,660 10,426 11,138 \n \nValuation Assets \n$ 3,100 4,165 5,269 6,413 7,558 8,702 \n10,087 12,131 14,264 16,446 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n \n(2) \n \n(3) \n \nn/a \n \n48.5% \n \n0.0% \n \nn/a \n \n54.4% \n \n0.0% \n \nn/a \n \n55.8% \n \n0.0% \n \nn/a \n \n50.3% \n \n0.0% \n \nn/a \n \n53.9% \n \n0.0% \n \nn/a \n \n56.6% \n \n0.0% \n \nn/a \n \n57.6% \n \n0.0% \n \nn/a \n \n62.5% \n \n0.0% \n \nn/a \n \n66.7% \n \n0.0% \n \nn/a \n \n68.3% \n \n0.0% \n \nSEAD-Active 2 \n \nActuarial Valuation as of 7/1 \n2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n \n(1) \n \n$ \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \nRetirants \u0026 Beneficiaries \n \nActive Member (Employer \nFunded Portion) \n \n(2) \n \n$ \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n(3) \n$ 59,509 62,171 61,351 40,523 40,145 39,317 37,512 35,877 21,723 \n \nValuation Assets \n$ 185,335 172,595 144,161 156,132 184,783 183,390 204,779 235,358 240,677 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n \n(2) \n \n(3) \n \nn/a \n \nn/a \n \n100.0% \n \nn/a \n \nn/a \n \n100.0% \n \nn/a \n \nn/a \n \n100.0% \n \nn/a \n \nn/a \n \n100.0% \n \nn/a \n \nn/a \n \n100.0% \n \nn/a \n \nn/a \n \n100.0% \n \nn/a \n \nn/a \n \n100.0% \n \nn/a \n \nn/a \n \n100.0% \n \nn/a \n \nn/a \n \n100.0% \n \n(continued) 116 \n \n Actuarial Section \n \nSolvency Test Results \n(Dollar amounts in thousands) \nSEAD-OPEB 2 \n \nActuarial Valuation as of 7/1 \n2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n \n(1) \n \n$ \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \nRetirants \u0026 Beneficiaries \n \nActive Member (Employer \nFunded Portion) \n \n(2) \n$ 436,530 486,569 524,718 516,633 503,327 528,165 586,228 621,502 621,426 \n \n(3) \n$ 206,001 213,315 208,953 174,368 175,093 176,452 168,558 166,518 148,321 \n \nValuation Assets \n$ 778,048 737,114 628,199 680,449 807,893 818,284 907,831 \n1,037,901 1,046,559 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n \n(2) \n \n(3) \n \nn/a \n \n100.0% \n \n100.0% \n \nn/a \n \n100.0% \n \n100.0% \n \nn/a \n \n100.0% \n \n49.5% \n \nn/a \n \n100.0% \n \n93.9% \n \nn/a \n \n100.0% \n \n100.0% \n \nn/a \n \n100.0% \n \n100.0% \n \nn/a \n \n100.0% \n \n100.0% \n \nn/a \n \n100.0% \n \n100.0% \n \nn/a \n \n100.0% \n \n100.0% \n \n Data prior to 2006 is not available for Defined Benefit Pension Plans. 2 SEAD-Active and SEAD-OPEB were created effective July 1, 2007. \n \n117 \n \n FinSStaaetcisntitoiccnalial Section \n \nStatistical Section \n \nERS \n \nGMPF \n \nGJRS \n \nERSGA \n \nLRS \n \nPSR \n \nGDCP \n \nPSERS \n \nE RSGA \n \nServing those who serve Georgia \n \nEmployees' Retirement System of Georgia \n \n Statistical Section \nIntroduction \nThe objective of the statistical section is to provide a historical perspective, context and relevant details to assist readers in evaluating the condition of the plans. All nonaccounting data is taken from ERSGA's internal sources except for information which is derived from the actuarial valuations. FY2010 was the first year ERSGA added this information in their Annual Financial Report. Therefore, historical detail may not be complete for some schedules. Statistical information is not presented for SCJRF and DARF as both plans are immaterial, have no active members, and are closed to new members. \nFinancial Trends \nThe following schedules have been included to help the reader understand how the System's financial position has changed over the past 10 years: \nAdditions by Source Deductions by Type Changes in Fiduciary Net Position Operational Trends The following schedules have been included to help the readers understand how the System's financial report relates to the services provided by the System and the activities it performs: Retiree Information Withdrawal (Refund) Data New Retiree Elections Overall Plan Statistics \n119 \n \n 120 \n \n(continued) \n \nERS \nEmployee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \nPSERS \nEmployee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \nGJRS \nEmployee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \nLRS \nEmployee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \n \n2007 \n \n$ \n \n49,250 \n \n270,141 \n \n-- \n \n1,869,113 \n \n90,333 \n \n$ 2,278,837 \n \n$ \n \n1,420 \n \n6,490 \n \n-- \n \n106,833 \n \n588 \n \n$ 115,331 \n \n$ \n \n4,040 \n \n1,778 \n \n-- \n \n39,324 \n \n175 \n \n$ \n \n45,317 \n \n$ \n \n320 \n \n62 \n \n-- \n \n4,072 \n \n110 \n \n$ \n \n4,564 \n \n2008 \n \n2009 \n \n2010 \n \n2011 \n \n48,324 286,256 \n-- (482,679) \n-- \n \n43,978 281,206 \n-- (1,726,302) \n-- \n \n42,052 263,064 \n-- 1,176,741 \n-- \n \n39,480 261,132 \n-- 2,269,270 \n-- \n \n(148,099) (1,401,118) 1,481,857 2,569,882 \n \n1,451 2,869 \n-- (27,052) \n588 \n \n1,472 5,096 \n-- (97,156) \n588 \n \n(22,144) \n \n(90,000) \n \n1,483 5,530 \n-- 66,404 \n-- \n \n1,451 7,509 \n-- 128,096 \n-- \n \n73,417 137,056 \n \n4,698 2,395 \n-- (10,702) \n175 \n \n4,612 1,703 \n-- (38,164) \n175 \n \n(3,434) \n \n(31,674) \n \n5,018 3,369 \n-- 27,378 \n175 \n35,940 \n \n4,721 1,163 \n-- 57,330 \n-- \n63,214 \n \n320 73 -- \n(1,051) 110 \n(548) \n \n320 71 -- \n(3,772) 110 \n(3,271) \n \n318 75 -- \n2,610 110 \n3,113 \n \n320 75 -- \n5,194 -- \n5,589 \n \n2012 \n \n2013 \n \n2014 \n \n2015 \n \n36,561 274,034 \n-- 231,782 \n-- \n \n38,955 358,992 \n-- 1,495,849 \n-- \n \n32,423 418,807 \n10,945 2,021,748 \n-- \n \n33,713 505,668 \n12,495 474,147 \n10 \n \n542,377 1,893,796 2,483,923 1,026,033 \n \n1,426 15,884 \n-- 13,554 \n-- \n \n1,538 24,829 \n-- 88,067 \n-- \n \n1,659 -- \n27,160 123,799 \n-- \n \n1,800 -- \n28,461 30,129 \n-- \n \n30,864 114,434 152,618 \n \n60,390 \n \n4,904 2,083 \n-- 6,571 \n-- \n \n4,408 2,279 \n-- 42,104 \n-- \n \n4,731 1,373 1,002 60,012 \n-- \n \n5,061 2,696 1,564 14,697 \n-- \n \n13,558 \n \n48,791 \n \n67,118 \n \n24,018 \n \n323 76 -- 550 -- \n949 \n \n373 128 \n-- 3,573 \n-- \n4,074 \n \n282 45 -- \n4,969 -- \n5,296 \n \n327 -- -- 1,189 -- \n1,516 \n \n2016 \n31,961 583,082 \n12,484 141,292 \n10 \n768,829 \n1,925 -- \n28,580 9,809 -- \n40,314 \n5,507 4,754 2,869 5,055 \n-- \n18,185 \n328 -- -- 363 -- \n691 \n \nStatistical Section \nAdditions by Source - Contribution/Investment Income (in thousands) \n \n Statistical Section \nAdditions by Source - Contribution/Investment Income (in thousands) \n \nGMPF \nEmployee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \n \n2007 \n \n2008 \n \n2009 \n \n2010 \n \n2011 \n \n2012 \n \n2013 \n \n2014 \n \n2015 \n \n2016 \n \n$ \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n1,005 \n \n1,103 \n \n1,323 \n \n1,434 \n \n1,282 \n \n1,521 \n \n1,703 \n \n1,892 \n \n1,893 \n \n1,990 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n503 \n \n(191) \n \n(657) \n \n565 \n \n1,465 \n \n221 \n \n1,374 \n \n2,179 \n \n585 \n \n240 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n$ \n \n1,508 \n \n912 \n \n666 \n \n1,999 \n \n2,747 \n \n1,742 \n \n3,077 \n \n4,071 \n \n2,478 \n \n2,230 \n \n121 \n \nSEAD - Active* \n \nEmployee Contributions Employer Contributions \n \n$ \n \nInsurance Premiums \n \nNet Investment Income (Loss) \n \nOther \n \nTotal Additions to (Deductions from) Fidu- \n \nciary Net Position \n \n$ \n \nSEAD - OPEB* \n \nEmployee Contributions Employer Contributions \n \n$ \n \nInsurance Premiums \n \nNet Investment Income (Loss) \n \nOther \n \nTotal Additions to (Deductions from) Fidu- \n \nciary Net Position \n \n$ \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n864 \n \n880 \n \n900 \n \n847 \n \n-- \n \n(6,321) (22,656) \n \n15,910 \n \n33,023 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n(5,457) (21,776) \n \n16,810 \n \n33,870 \n \n-- -- 771 3,876 -- \n \n-- -- 699 24,274 -- \n \n-- -- 607 35,073 -- \n \n4,647 \n \n24,973 35,680 \n \n-- -- 581 8,714 -- \n9,295 \n \n-- -- 611 3,109 -- \n3,720 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n7,756 \n \n7,551 \n \n-- (27,032) (96,424) \n \n-- \n \n-- \n \n-- \n \n-- -- 6,755 69,340 -- \n \n-- -- 6,437 144,270 -- \n \n-- -- 5,532 17,193 -- \n \n-- -- 5,075 108,148 -- \n \n-- -- 4,502 154,868 -- \n \n-- -- 4,187 37,876 -- \n \n-- -- 3,931 12,559 -- \n \n-- (19,276) (88,873) \n \n76,095 150,707 22,725 \n \n113,223 159,370 \n \n42,063 \n \n16,490 \n \n*Plans began in fiscal year 2008. \n \n(continued) \n \n Statistical Section \nAdditions by Source - Contribution/Investment Income (in thousands) \n122 \n \nDefined Contribution Plan - GDCP \nEmployee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \nDefined Contribution Plan - 401(k) \nEmployee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \nDefined Contribution Plan - 457 \nEmployee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \n \n2007 \n \n2008 \n \n2009 \n \n2010 \n \n2011 \n \n2012 \n \n2013 \n \n2014 \n \n2015 \n \n2016 \n \n$ \n \n15,060 15,860 \n \n15,608 \n \n16,002 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n7,938 \n \n(331) (5,294) 10,319 \n \n-- \n \n-- \n \n-- \n \n-- \n \n$ \n \n22,998 15,529 \n \n10,314 \n \n26,321 \n \n17,656 -- -- \n775 -- \n \n17,171 -- -- \n652 -- \n \n16,676 -- -- \n137 -- \n \n16,290 -- -- \n1,368 -- \n \n15,655 -- -- \n1,326 -- \n \n14,708 -- -- \n5,591 -- \n \n18,431 \n \n17,823 \n \n16,813 \n \n17,658 \n \n16,981 \n \n20,299 \n \n$ \n \n34,956 38,927 \n \n33,432 \n \n14,774 14,193 \n \n6,939 \n \n33,899 15,664 \n \n38,006 25,442 \n \n40,331 4,355 \n \n44,428 18,279 \n \n53,724 21,513 \n \n64,870 25,615 \n \n79,422 29,982 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n39,927 (21,302) (50,330) \n \n25,283 \n \n59,581 \n \n3,112 \n \n52,835 \n \n78,583 \n \n17,665 \n \n5,281 \n \n674 \n \n921 \n \n750 \n \n385 \n \n446 \n \n800 \n \n948 \n \n1,122 \n \n-- \n \n1,429 \n \n$ \n \n90,331 32,739 \n \n(9,209) \n \n75,231 123,475 \n \n48,598 116,490 154,942 109,448 116,114 \n \n$ \n \n28,116 \n \n26,466 \n \n24,087 \n \n21,171 \n \n20,108 \n \n19,551 \n \n18,753 \n \n17,623 \n \n17,445 \n \n17,413 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n72,425 (31,343) (70,066) \n \n35,806 \n \n70,963 \n \n7,785 \n \n55,737 \n \n73,746 \n \n18,991 \n \n7,855 \n \n537 \n \n761 \n \n626 \n \n468 \n \n339 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n$ 101,078 \n \n(4,116) (45,353) \n \n57,445 \n \n91,410 \n \n27,336 \n \n74,490 \n \n91,369 \n \n36,436 \n \n25,268 \n \n Statistical Section \n \nDeductions by Type (in thousands) \n \nERS \nFiscal Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nBenefit Payments \n \nService \n \nPartial Lump-Sum \nOption \n \n$ \n \n721,869 \n \n797,052 \n \n889,669 \n \n878,482 \n \n921,136 \n \n964,485 \n \n1,007,816 \n \n1,051,993 \n \n1,076,676 \n \n1,092,909 \n \n17,821 24,792 22,011 23,480 30,946 31,963 35,933 24,567 24,391 19,154 \n \nDisability \n127,091 131,709 135,743 146,031 140,849 143,317 145,152 146,245 147,418 147,706 \n \nSurvivor Benefits \n61,873 66,397 69,735 82,676 75,891 76,973 80,300 83,193 85,794 87,843 \n \nTotal Benefit Payments \n \n$ \n \n928,654 \n \n1,019,950 \n \n1,117,158 \n \n1,130,669 \n \n1,168,822 \n \n1,216,738 \n \n1,269,201 \n \n1,305,998 \n \n1,334,278 \n \n1,347,633 \n \nNet Administrative \nExpenses \n14,901 18,805 16,809 14,505 14,431 12,051 12,889 \n7,440 7,872 8,506 \n \nRefunds \n \nTotal Deductions \nfrom Fiduciary Net Position \n \n6,696 $ 7,815 6,597 6,483 7,515 7,767 7,390 8,757 7,450 7,087 \n \n950,251 1,046,570 1,140,564 1,151,657 1,190,768 1,236,556 1,289,480 1,322,195 1,349,600 1,363,226 \n \nPSERS \n \nBenefit Payments \n \nFiscal Year \n2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nService \n \n$ \n \n40,070 \n \n41,607 \n \n45,159 \n \n45,741 \n \n46,548 \n \n46,911 \n \n47,805 \n \n48,911 \n \n49,704 \n \n50,572 \n \nDisability \n4,814 4,956 5,232 5,402 5,369 5,369 5,328 5,280 5,227 5,172 \n \nSurvivor Benefits \n1,580 1,682 1,806 2,052 2,063 1,903 1,908 1,998 2,041 2,160 \n \nTotal Benefit Payments \n \n$ \n \n46,464 \n \n48,245 \n \n52,197 \n \n53,195 \n \n53,980 \n \n54,183 \n \n55,041 \n \n56,189 \n \n56,972 \n \n57,903 \n \nNet Administrative \nExpenses \n588 588 588 1,956 2,046 2,040 2,021 1,450 1,545 1,321 \n \nRefunds \n319 308 261 251 267 349 492 514 456 465 \n \nTotal Deductions from \nFiduciary Net Position \n \n$ \n \n47,371 \n \n49,141 \n \n53,046 \n \n55,402 \n \n56,293 \n \n56,572 \n \n57,554 \n \n58,153 \n \n58,973 \n \n59,689 \n \nGJRS \n \nBenefit Payments \n \nFiscal Year \n2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nService \n \n$ \n \n7,908 \n \n8,259 \n \n9,453 \n \n10,633 \n \n11,245 \n \n12,608 \n \n14,273 \n \n15,305 \n \n16,084 \n \n16,677 \n \nDisability \n106 110 112 114 112 113 112 112 112 112 \n \nSurvivor Benefits \n1,285 1,498 1,546 1,618 1,654 1,695 1,865 2,024 2,169 2,222 \n \nTotal Benefit Payments \n \n$ \n \n9,299 \n \n9,867 \n \n11,111 \n \n12,365 \n \n13,011 \n \n14,416 \n \n16,250 \n \n17,441 \n \n18,365 \n \n19,011 \n \nNet Administrative \nExpenses \n175 175 175 270 290 310 313 754 819 754 \n \nRefunds \n76 14 263 139 260 146 105 22 772 261 \n \nTotal Deductions from \nFiduciary Net Position \n \n$ \n \n9,550 \n \n10,056 \n \n11,549 \n \n12,774 \n \n13,561 \n \n14,872 \n \n16,668 \n \n18,217 \n \n19,956 \n \n20,026 \n \n123 \n \n(continued) \n \n Statistical Section \n \nDeductions by Type (in thousands) \n \nLRS Benefit Payments \n \nFiscal Year \n2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nService \n \n$ \n \n1,187 \n \n1,228 \n \n1,265 \n \n1,308 \n \n1,309 \n \n1,364 \n \n1,376 \n \n1,336 \n \n1,315 \n \n1,294 \n \nSurvivor Benefits \n401 406 425 436 452 446 448 465 441 429 \n \nTotal Benefit Payments \n \n$ \n \n1,588 \n \n1,634 \n \n1,690 \n \n1,744 \n \n1,761 \n \n1,810 \n \n1,824 \n \n1,801 \n \n1,756 \n \n1,724 \n \nNet Administrative \nExpenses \n110 110 110 120 131 110 119 152 169 313 \n \nRefunds \n \nTotal Deductions from \nFiduciary Net Position \n \n33 $ 65 49 47 60 74 88 30 26 38 \n \n1,731 1,809 1,849 1,911 1,952 1,994 2,031 1,983 1,951 2,075 \n \nGMPF \n \nFiscal Year \n2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nBenefit Payments \n \nService* \n \nTotal Benefit Payments \n \n$ \n \n225 $ \n \n225 \n \n303 \n \n303 \n \n382 \n \n382 \n \n489 \n \n489 \n \n579 \n \n579 \n \n678 \n \n678 \n \n772 \n \n772 \n \n841 \n \n841 \n \n896 \n \n896 \n \n963 \n \n963 \n \nNet Administrative \nExpenses \n \nTotal Deductions from \nFiduciary Net Position \n \n-- $ -- -- 43 37 34 31 110 121 262 \n \n225 303 382 532 616 712 803 951 1,017 1,225 \n \n*The only type of retirement in GMPF is a service retirement. \n \n(continued) 124 \n \n Statistical Section \n \nDeductions by Type (in thousands) \n \nSEAD-Active \n \nFiscal Year \n2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nBenefit Payments \n \nDeath Benefits** \n \n$ \n \n-- \n \n7,261 \n \n6,636 \n \n4,817 \n \n5,197 \n \n6,018 \n \n3,562 \n \n5,055 \n \n3,929 \n \n3,345 \n \nTotal Benefit Payments \n \n$ \n \n-- \n \n7,261 \n \n6,636 \n \n4,817 \n \n5,197 \n \n6,018 \n \n3,562 \n \n5,055 \n \n3,929 \n \n3,345 \n \nNet Administrative \nExpenses \n \nTotal Deductions from \nFiduciary Net Position \n \n-- $ 22 22 22 22 22 22 46 47 67 \n \n-- 7,283 6,658 4,839 5,219 6,040 3,584 5,101 3,976 3,412 \n \nSEAD-OPEB \n \nFiscal Year \n2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nBenefit Payments \n \nDeath Benefits** \n \nTotal Benefit Payments \n \n$ \n \n-- $ \n \n-- \n \n21,455 \n \n21,455 \n \n19,839 \n \n19,839 \n \n23,642 \n \n23,642 \n \n23,060 \n \n23,060 \n \n24,855 \n \n24,855 \n \n28,482 \n \n28,482 \n \n28,891 \n \n28,891 \n \n32,979 \n \n32,979 \n \n33,911 \n \n33,911 \n \nNet Administrative \nExpenses \n \nTotal Deductions from \nFiduciary Net Position \n \n--$ 203 203 203 203 203 203 414 428 599 \n \n-- 21,658 20,042 23,845 23,263 25,058 28,685 29,305 33,407 34,510 \n \n**The only type of benefit in SEAD-Active and SEAD-OPEB is a death benefit.  Plan began in fiscal year 2008. \n \n(continued) 125 \n \n Statistical Section \n \nDeductions by Type (in thousands) \n \nDefined Contribution Plan - GDCP \n \nFiscal Year \n2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nBenefit Payments \n \nPeriodic Payments \n \nTotal Benefit Payments \n \nNet Administrative \nExpenses \n \n$ \n \n-- $ \n \n-- \n \n9 \n \n9 \n \n9 \n \n9 \n \n9 \n \n9 \n \n9 \n \n9 \n \n11 \n \n11 \n \n9 \n \n9 \n \n9 \n \n9 \n \n-- \n \n-- \n \n-- \n \n35 \n \n310 310 310 1,110 1,180 1,138 1,160 991 990 766 \n \nRefunds \n \nTotal Deductions from \nFiduciary Net Position \n \n12,464 $ 11,514 10,377 10,613 11,390 12,749 14,415 17,721 22,340 11,911 \n \n12,774 11,833 10,696 11,732 12,579 13,898 15,584 18,721 23,330 12,712 \n \nDefined Contribution Plan - 401(k) \n \nFiscal Year \n2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nBenefit Payments \n \nDistributions \n \n$ \n \n25,785 \n \n26,548 \n \n21,105 \n \n23,618 \n \n42,457 \n \n36,986 \n \n57,351 \n \n43,133 \n \n95,428 \n \n46,508 \n \nTotal Benefit Payments \n \n$ \n \n25,785 \n \n26,548 \n \n21,105 \n \n23,618 \n \n42,457 \n \n36,986 \n \n57,351 \n \n43,133 \n \n95,428 \n \n46,508 \n \nNet Administrative \nExpenses \n \nTotal Deductions from \nFiduciary Net Position \n \n1,050 $ 1,472 1,028 \n829 2,054 2,111 2,457 2,300 2,755 2,832 \n \n26,835 28,020 22,133 24,447 44,511 39,097 59,808 45,433 98,183 49,340 \n \nDefined Contribution Plan - 457 \n \nFiscal Year \n2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 \n \nBenefit Payments \n \nDistributions \n \n$ \n \n53,097 \n \n41,555 \n \n37,257 \n \n37,014 \n \n44,773 \n \n41,835 \n \n63,388 \n \n45,807 \n \n50,479 \n \n43,288 \n \nTotal Benefit Payments \n \n$ \n \n53,097 \n \n41,555 \n \n37,257 \n \n37,014 \n \n44,773 \n \n41,835 \n \n63,388 \n \n45,807 \n \n50,479 \n \n43,288 \n \nNet Administrative \nExpenses \n \nTotal Deductions from \nFiduciary Net Position \n \n921 $ 1,169 1,769 2,115 1,064 \n910 996 812 866 820 \n \n54,018 42,724 39,026 39,129 45,837 42,745 64,384 46,619 51,345 44,108 \n \n126 \n \n Statistical Section \nChanges in Fiduciary Net Position (in thousands) \n(continued) 127 \n \nERS \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nPSERS \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nGJRS \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nLRS \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nGMPF \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \n \n2007 \n \n2008 \n \n2009 \n \n2010 \n \n2011 \n \n2012 \n \n2013 \n \n2014 \n \n2015 \n \n2016 \n \n$ 2,278,837 (148,099) (1,401,118) 1,481,857 2,569,882 542,377 1,893,796 2,483,923 1,026,033 \n \n768,829 \n \n950,251 1,046,570 1,140,564 1,151,657 1,190,768 1,236,556 1,289,480 1,322,195 1,349,600 1,363,226 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n(12,724) \n \n(5,009) \n \n-- \n \n-- \n \n-- \n \n1,328,586 (1,194,669) (2,541,682) 330,200 1,379,114 (706,903) 599,307 1,161,728 (323,567) (594,397) \n \n115,331 47,371 \n-- 67,960 \n \n(22,144) 49,141 \n-- (71,285) \n \n(90,000) 53,046 \n-- (143,046) \n \n73,417 55,402 \n-- 18,015 \n \n137,056 56,293 -- 80,763 \n \n30,864 56,572 \n-- (25,708) \n \n114,434 57,554 \n-- 56,880 \n \n152,618 58,153 -- 94,465 \n \n60,390 58,973 \n-- 1,417 \n \n40,314 59,689 \n-- (19,375) \n \n45,317 9,550 -- \n35,767 \n \n(3,434) 10,056 \n-- (13,490) \n \n(31,674) 11,549 \n-- (43,223) \n \n35,940 12,774 \n-- 23,166 \n \n63,214 13,561 \n-- 49,653 \n \n13,558 14,872 \n-- (1,314) \n \n48,791 16,668 \n-- 32,123 \n \n67,118 18,217 \n-- 48,901 \n \n24,018 19,956 \n-- 4,062 \n \n18,185 20,026 \n-- (1,841) \n \n4,564 1,731 \n-- 2,833 \n \n(548) 1,809 \n-- (2,357) \n \n(3,271) 1,849 \n-- (5,120) \n \n3,113 1,911 \n-- 1,202 \n \n5,589 1,952 \n-- 3,637 \n \n949 1,994 \n-- (1,045) \n \n4,074 2,031 \n-- 2,043 \n \n5,296 1,983 \n-- 3,313 \n \n1,516 1,951 \n-- (435) \n \n691 2,075 \n-- (1,384) \n \n1,508 \n \n912 \n \n225 \n \n303 \n \n-- \n \n-- \n \n1,283 \n \n609 \n \n666 \n \n1,999 \n \n2,747 \n \n1,742 \n \n3,077 \n \n4,071 \n \n2,478 \n \n382 \n \n532 \n \n616 \n \n712 \n \n803 \n \n951 \n \n1,017 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n284 \n \n1,467 \n \n2,131 \n \n1,030 \n \n2,274 \n \n3,120 \n \n1,461 \n \n2,230 1,225 \n-- 1,005 \n \n Statistical Section \nChanges in Fiduciary Net Position (in thousands) \n128 \n \nSEAD - Active* \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nSEAD - OPEB* \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nSurvivors Benefit Fund** \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \n \n2007 \n \n2008 \n \n2009 \n \n2010 \n \n2011 \n \n2012 \n \n2013 \n \n2014 \n \n2015 \n \n2016 \n \n$ \n \n-- \n \n(5,457) (21,776) \n \n16,810 \n \n33,870 \n \n4,647 \n \n24,973 \n \n35,680 \n \n9,295 \n \n3,720 \n \n-- \n \n7,283 \n \n6,658 \n \n4,839 \n \n5,219 \n \n6,040 \n \n3,584 \n \n5,101 \n \n3,976 \n \n3,412 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- (12,740) (28,434) \n \n11,971 \n \n28,651 \n \n(1,393) \n \n21,389 \n \n30,579 \n \n5,319 \n \n308 \n \n-- (19,276) (88,873) \n \n-- \n \n21,658 \n \n20,042 \n \n-- \n \n-- \n \n-- \n \n-- (40,934) (108,915) \n \n76,095 23,845 \n-- 52,250 \n \n150,707 23,263 -- \n127,444 \n \n22,725 25,058 12,724 10,391 \n \n113,223 28,685 \n5,009 89,547 \n \n159,370 29,305 5 \n130,070 \n \n42,063 33,407 \n2 8,658 \n \n16,490 34,510 \n2 (18,018) \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n17,044 \n \n4,307 \n \n1,611 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n(5) \n \n(2) \n \n(2) \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n17,039 \n \n4,305 \n \n1,609 \n \nDefined Contribution Plan - GDCP \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nDefined Contribution Plan - 401(k) \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nDefined Contribution Plan - 457 \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \n \n$ \n \n22,998 \n \n12,774 \n \n-- \n \n10,224 \n \n15,529 11,833 \n-- 3,696 \n \n10,314 10,696 \n-- (382) \n \n90,331 26,835 \n-- 63,496 \n \n32,739 28,020 \n-- 4,719 \n \n(9,209) 22,133 \n-- (31,342) \n \n101,078 54,018 -- 47,060 \n \n(4,116) 42,724 \n-- (46,840) \n \n(45,353) 39,026 \n-- (84,379) \n \n* Plan began in fiscal year 2008. **Plan reported separately from ERS pension trust beginning in fiscal year 2014. \n \n26,321 11,732 \n-- 14,589 \n \n18,431 12,579 \n-- 5,852 \n \n17,823 13,898 \n-- 3,925 \n \n16,813 15,584 \n-- 1,229 \n \n17,658 18,721 \n-- (1,063) \n \n16,981 23,330 \n-- (6,349) \n \n20,299 12,712 \n-- 7,587 \n \n75,231 24,447 \n-- 50,784 \n \n123,475 44,511 -- 78,964 \n \n48,598 39,097 \n-- 9,501 \n \n116,490 59,808 \n-- 56,682 \n \n154,942 45,433 -- \n109,509 \n \n109,448 98,183 -- 11,265 \n \n116,114 49,340 \n-- 66,774 \n \n57,445 39,129 \n-- 18,316 \n \n91,410 45,837 \n-- 45,573 \n \n27,336 42,745 \n-- (15,409) \n \n74,490 64,384 \n-- 10,106 \n \n91,369 46,619 \n-- 44,750 \n \n36,436 51,345 \n-- (14,909) \n \n25,268 44,108 \n-- (18,840) \n \n Number of Retirees \n \nStatistical Section \n \n129 \n \n Average Monthly Payments to Retirees \n \nStatistical Section \n \n130 \n \n Annual Benefit \n \nStatistical Section \n \n131 \n \n Withdrawal Statistics \n \nStatistical Section \n \nNote: The GMPF Plan does not have a refund feature. 132 \n \n Statistical Section \n \nAverage Monthly Benefit Payment for New Retirees - ERS \n \n2007 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2008 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2009 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2010 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2011 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2012 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2013 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2014 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2015 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2016 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n \n10-15 \n \nYears of Credited Service \n \n16-20 \n \n21-25 \n \n26-30 \n \nOver 30 \n \nTotal \n \n$655.86 $2,935.70 \n307 \n \n$961.27 $3,071.63 \n303 \n \n$1,317.36 $3,265.26 \n247 \n \n$1,789.83 $3,745.37 \n292 \n \n$3,423.26 $4,373.83 \n1,022 \n \n$2,229.02 $3,778.07 \n2,171 \n \n$701.03 $3,025.39 \n309 \n \n$1,068.51 $3,181.44 \n306 \n \n$1,457.03 $3,408.23 \n280 \n \n$1,899.48 $3,767.28 \n290 \n \n$3,576.69 $4,489.73 \n1,032 \n \n$2,342.60 $3,873.97 \n2,217 \n \n$717.65 $3,109.07 \n344 \n \n$1,059.22 $3,179.28 \n320 \n \n$1,458.18 $3,483.90 \n301 \n \n$1,910.75 $3,875.27 \n324 \n \n$3,627.21 $4,548.96 \n949 \n \n$2,272.58 $3,891.02 \n2,238 \n \n$694.23 $3,023.45 \n391 \n \n$1,086.00 $3,345.36 \n324 \n \n$1,502.32 $3,555.21 \n332 \n \n$1,849.65 $3,802.65 \n375 \n \n$3,653.29 $4,588.73 \n981 \n \n$2,247.01 $3,900.93 \n2,403 \n \n$734.74 $3,228.07 \n437 \n \n$1,107.16 $3,205.88 \n322 \n \n$1,504.51 $3,478.73 \n389 \n \n$1,995.24 $3,762.88 \n461 \n \n$3,575.54 $4,532.07 \n885 \n \n$2,143.95 $3,825.88 \n2,494 \n \n$729.60 $3,040.00 \n518 \n \n$1,247.16 $3,275.37 \n385 \n \n$1,624.82 $3,388.85 \n414 \n \n$2,125.35 $3,807.26 \n486 \n \n$3,708.26 $4,702.47 \n776 \n \n$2,109.84 $3,775.94 \n2,578 \n \n$836.73 $3,391.36 \n684 \n \n$1,183.19 $3,339.84 \n453 \n \n$1,650.14 $3,411.24 \n466 \n \n$2,120.33 $3,765.16 \n780 \n \n$3,487.96 $4,659.17 \n1,033 \n \n$2,088.46 $3,855.98 \n3,416 \n \n$769.91 $3,309.44 \n483 \n \n$1,232.07 $3,337.66 \n306 \n \n$1,527.47 $3,263.54 \n311 \n \n$2,057.32 $3,718.37 \n477 \n \n$3,242.25 $4,486.34 \n542 \n \n$1,870.02 $3,699.86 \n2,119 \n \n$750.98 $3,269.25 \n524 \n \n$1,224.00 $3,443.88 \n316 \n \n$1,620.88 $3,547.63 \n341 \n \n$2,068.82 $3,750.99 \n623 \n \n$3,074.69 $4,536.68 \n561 \n \n$1,837.97 $3,760.27 \n2,365 \n \n$759.54 $3,189.20 \n559 \n \n$1,224.52 $3,376.84 \n340 \n \n$1,760.28 $3,657.08 \n330 \n \n$2,171.75 $3,935.01 \n530 \n \n$2,996.81 $4,618.83 \n466 \n \n$1,783.98 $3,764.34 \n2,225 \n \n133 \n \n(continued) \n \n Statistical Section \n \nAverage Monthly Benefit Payment for New Retirees - PSERS \n \n2007 \nAverage Monthly Benefit Number of Retirees \n2008 \nAverage Monthly Benefit Number of Retirees \n2009 \nAverage Monthly Benefit Number of Retirees \n2010 \nAverage Monthly Benefit Number of Retirees \n2011 \nAverage Monthly Benefit Number of Retirees \n2012 \nAverage Monthly Benefit Number of Retirees \n2013 \nAverage Monthly Benefit Number of Retirees \n2014 \nAverage Monthly Benefit Number of Retirees \n2015 \nAverage Monthly Benefit Number of Retirees \n2016 \nAverage Monthly Benefit Number of Retirees \n \n10-15 \n \nYears of Credited Service \n \n16-20 \n \n21-25 \n \n26-30 \n \nOver 30 \n \nTotal \n \n$143.42 323 \n \n$208.47 174 \n \n$265.12 106 \n \n$331.55 89 \n \n$426.70 93 \n \n$229.16 785 \n \n$149.91 362 \n \n$219.81 199 \n \n$279.58 116 \n \n$349.05 99 \n \n$439.31 98 \n \n$238.04 874 \n \n$156.52 391 \n \n$224.92 200 \n \n$289.93 157 \n \n$357.58 91 \n \n$460.04 90 \n \n$242.89 929 \n \n$157.66 448 \n \n$224.92 200 \n \n$300.93 162 \n \n$359.24 76 \n \n$464.07 105 \n \n$243.41 1,001 \n \n$158.67 463 \n \n$227.68 200 \n \n$297.01 126 \n \n$374.01 79 \n \n$479.42 114 \n \n$245.04 982 \n \n$159.25 480 \n \n$236.46 182 \n \n$303.66 136 \n \n$362.36 74 \n \n$476.51 87 \n \n$238.59 958 \n \n$159.34 580 \n \n$232.10 255 \n \n$300.66 175 \n \n$360.75 113 \n \n$478.49 133 \n \n$245.72 1,256 \n \n$154.20 603 \n \n$227.41 268 \n \n$297.58 147 \n \n$345.98 121 \n \n$437.20 131 \n \n$233.71 1,270 \n \n$155.20 568 \n \n$225.02 254 \n \n$290.82 166 \n \n$360.11 105 \n \n$471.12 99 \n \n$233.25 1,192 \n \n$160.28 529 \n \n$232.09 273 \n \n$298.45 454 \n \n$358.11 103 \n \n$489.48 103 \n \n$242.18 1,162 \n \nNote: PSERS is not a final average pay plan. \n \n(continued) 134 \n \n Statistical Section \n \nAverage Monthly Benefit Payment for New Retirees - GJRS \n \n2007 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2008 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2009 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2010 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2011 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2012 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2013 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2014 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2015 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2016 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n \n10-15 \n \nYears of Credited Service \n \n16-20 \n \n21-25 \n \n26-30 \n \nOver 30 \n \nTotal \n \n$4,635.56 $7,888.25 \n4 \n \n$1,821.81 $8,213.52 \n3 \n \n$5,338.65 $7,150.62 \n3 \n \n$7,603.57 $10,184.26 \n1 \n \n0 \n \n$4,849.90 \n \n0 \n \n$8,359.16 \n \n0 \n \n11 \n \n$2,485.43 $6,662.15 \n4 \n \n0 \n \n$7,368.55 \n \n$4,735.08 \n \n0 \n \n$9,934.33 \n \n$6,342.20 \n \n0 \n \n2 \n \n2 \n \n0 \n \n$4,863.02 \n \n0 \n \n$7,646.23 \n \n0 \n \n8 \n \n$4,874.28 $9,519.58 \n8 \n \n$5,883.17 $8,825.88 \n5 \n \n$7,366.55 $10,071.58 \n7 \n \n$6,630.61 $8,881.08 \n5 \n \n$7,639.64 $10,232.57 \n2 \n \n$6,478.85 $9,506.14 \n27 \n \n$6,337.43 $10,490.01 \n1 \n \n$4,563.90 $7,018.08 \n5 \n \n$7,643.86 $10,490.01 \n2 \n \n$6,422.80 $8,602.74 \n4 \n \n0 \n \n$6,242.00 \n \n0 \n \n$9,150.21 \n \n0 \n \n12 \n \n$4,632.24 $9,211.23 \n4 \n \n$10,170.24 $14,910.13 \n2 \n \n$9,799.81 $13,052.66 \n2 \n \n$8,428.40 $11,264.63 \n3 \n \n0 \n \n$7,614.02 \n \n0 $11,505.85 \n \n0 \n \n11 \n \n$4,204.95 $7,788.39 \n5 \n \n$6,610.26 $9,887.17 \n4 \n \n$7,565.84 $10,361.29 \n4 \n \n$8,791.96 $11,714.95 \n7 \n \n$7,831.84 $10,490.01 \n1 \n \n$6,915.64 $10,035.77 \n20 \n \n$5,179.20 $9,271.48 \n8 \n \n$5,844.29 $8,344.35 \n7 \n \n$6,170.52 $8,370.72 \n7 \n \n$7,954.14 $10,624.52 \n5 \n \n$6,169.77 $8,864.27 \n7 \n \n$6,132.24 $9,010.27 \n34 \n \n$2,989.92 $6,265.39 \n6 \n \n$4,468.12 $7,772.95 \n2 \n \n$6,496.50 $8,998.48 \n7 \n \n0 \n \n$2,703.82 \n \n$4,470.15 \n \n0 \n \n$4,289.57 \n \n$7,166.46 \n \n0 \n \n3 \n \n18 \n \n$4,010.30 $6,937.39 \n2 \n \n$6,317.44 $9,141.51 \n5 \n \n$7,051.15 $9,751.01 \n7 \n \n$7,589.28 $10,165.12 \n2 \n \n$2,406.28 $3,222.98 \n1 \n \n$6,267.69 $8,905.45 \n17 \n \n0 \n \n$6,534.36 \n \n$8,121.58 \n \n0 \n \n$9,655.37 $11,204.04 \n \n0 \n \n6 \n \n2 \n \n0 \n \n$8,635.31 \n \n$7,120.51 \n \n0 $11,566.18 $10,211.83 \n \n0 \n \n1 \n \n9 \n \n(continued) 135 \n \n Statistical Section \n \nAverage Monthly Benefit Payment for New Retirees - LRS \n \n2007 \nAverage Monthly Benefit Number of Retirees \n2008 \nAverage Monthly Benefit Number of Retirees \n2009 \nAverage Monthly Benefit Number of Retirees \n2010 \nAverage Monthly Benefit Number of Retirees \n2011 \nAverage Monthly Benefit Number of Retirees \n2012 \nAverage Monthly Benefit Number of Retirees \n2013 \nAverage Monthly Benefit Number of Retirees \n2014 \nAverage Monthly Benefit Number of Retirees \n2015 \nAverage Monthly Benefit Number of Retirees \n2016 \nAverage Monthly Benefit Number of Retirees \n \n8 - 14 \n \nYears of Credited Service \n \n15 - 19 \n \n20 - 24 \n \n25 - 29 30 \u0026 over \n \nTotal \n \n$256.96 5 \n \n$476.39 5 \n \n$762.02 2 \n \n$939.00 $1,195.52 \n \n1 \n \n1 \n \n$725.98 14 \n \n$324.74 $604.63 $698.86 \n \n0 \n \n0 $542.74 \n \n4 \n \n4 \n \n2 \n \n0 \n \n0 \n \n10 \n \n$425.39 2 \n \n$650.99 1 \n \n0 $921.00 $1,203.00 $800.10 \n \n0 \n \n2 \n \n3 \n \n8 \n \n$372.93 $558.00 \n \n0 \n \n0 \n \n0 $465.47 \n \n8 \n \n1 \n \n0 \n \n0 \n \n0 \n \n9 \n \n$341.79 12 \n \n$589.12 1 \n \n0 $843.26 $934.73 $456.99 \n \n0 \n \n2 \n \n1 \n \n16 \n \n$363.66 $549.08 \n \n0 \n \n0 $1,286.43 $548.46 \n \n4 \n \n2 \n \n0 \n \n0 \n \n1 \n \n7 \n \n$308.15 14 \n \n$568.93 4 \n \n$670.94 2 \n \n0 $1,166.93 \n \n0 \n \n3 \n \n$497.03 23 \n \n$289.25 $480.21 \n \n0 \n \n0 \n \n0 $336.99 \n \n3 \n \n1 \n \n0 \n \n0 \n \n0 \n \n4 \n \n$341.03 5 \n \n$382.95 1 \n \n$642.84 3 \n \n0 $1,228.50 \n \n0 \n \n2 \n \n$588.51 11 \n \n$322.51 $524.09 \n \n0 \n \n0 \n \n0 $380.11 \n \n5 \n \n2 \n \n0 \n \n0 \n \n0 \n \n7 \n \nNote: LRS is not a final average pay plan. \n \n(continued) 136 \n \n Statistical Section \n \nAverage Monthly Benefit Payment for New Retirees - GMPF \n \n2007 \nAverage Monthly Benefit Number of Retirees \n2008 \nAverage Monthly Benefit Number of Retirees \n2009 \nAverage Monthly Benefit Number of Retirees \n2010 \nAverage Monthly Benefit Number of Retirees \n2011 \nAverage Monthly Benefit Number of Retirees \n2012 \nAverage Monthly Benefit Number of Retirees \n2013 \nAverage Monthly Benefit Number of Retirees \n2014 \nAverage Monthly Benefit Number of Retirees \n2015 \nAverage Monthly Benefit Number of Retirees \n2016 \nAverage Monthly Benefit Number of Retirees \n \nYears of Credited Service \n \n20-25 \n \n26 - 30 \n \nOver 30 \n \nTotal \n \n$60.83 6 \n \n$83.46 13 \n \n$100.00 54 \n \n$93.84 73 \n \n$55.63 8 \n \n$83.61 18 \n \n$100.00 47 \n \n$91.10 73 \n \n$59.50 20 \n \n$87.63 19 \n \n$100.00 53 \n \n$88.64 92 \n \n$63.82 17 \n \n$85.83 18 \n \n$100.00 56 \n \n$90.44 91 \n \n$63.16 19 \n \n$91.47 17 \n \n$100.00 52 \n \n$90.40 88 \n \n$61.54 13 \n \n$90.33 15 \n \n$100.00 63 \n \n$92.83 90 \n \n$59.44 18 \n \n$89.55 22 \n \n$100.00 42 \n \n$88.29 82 \n \n$61.11 9 \n \n$90.53 19 \n \n$100.00 31 \n \n$91.02 59 \n \n$62.07 15 \n \n$94.10 16 \n \n$100.00 20 \n \n$86.99 51 \n \n$66.30 27 \n \n$89.29 14 \n \n$100.00 30 \n \n$85.07 71 \n \nNote: GMPF is not a final average pay plan. \n \n137 \n \n Retired Members by Retirement Type \nERS June 30, 2016 \n \nStatistical Section \n \nPSERS June 30, 2016 \n \nAmount of Monthly Benefit \n$ 1 - 500 501 - 1,000 1,001 - 1,500 1,501 - 2,000 2,001 - 2,500 2,501 - 3,000 3,001 - 3,500 3,501 - 4,000 4,001 - 4,500 4,501 - 5,000 over 5,000 \nTotals \n \nRetirement Type Service Disability Survivor \n \n3,563 \n \n254 \n \n322 \n \n7,609 \n \n1,005 \n \n324 \n \n6,138 \n \n1,147 \n \n231 \n \n4,796 \n \n933 \n \n158 \n \n3,784 \n \n773 \n \n107 \n \n3,143 \n \n589 \n \n72 \n \n2,560 \n \n422 \n \n51 \n \n2,150 \n \n318 \n \n44 \n \n1,729 \n \n229 \n \n23 \n \n1,540 \n \n182 \n \n12 \n \n3,935 \n \n279 \n \n27 \n \n40,947 \n \n6,131 \n \n1,371 \n \nAmount of Monthly Benefit \n$ 1 - 100 101 - 200 201 - 300 301 - 400 401 - 500 over 500 \nTotals \n \nRetirement Type Service Disability Survivor \n \n93 \n \n6 \n \n220 \n \n5,915 \n \n37 \n \n146 \n \n4,590 \n \n314 \n \n43 \n \n2,642 \n \n419 \n \n6 \n \n1,567 \n \n294 \n \n2 \n \n1,157 \n \n175 \n \n-- \n \n15,964 \n \n1,245 \n \n417 \n \n(continued) 138 \n \n Retired Members by Retirement Type \nGJRS June 30, 2016 \n \nStatistical Section \n \nAmount of Monthly Benefit \n$ 1 - 1,000 1,001 - 2,000 2,001 - 3,000 3,001 - 4,000 4,001 - 5,000 5,001 - 6,000 6,001 - 7,000 7,001 - 8,000 over 8,000 \nTotals \n \nRetirement Type Service Disability Survivor \n \n13 \n \n-- \n \n-- \n \n20 \n \n-- \n \n6 \n \n26 \n \n-- \n \n1 \n \n34 \n \n-- \n \n1 \n \n21 \n \n2 \n \n1 \n \n17 \n \n-- \n \n-- \n \n29 \n \n-- \n \n-- \n \n90 \n \n-- \n \n-- \n \n34 \n \n-- \n \n-- \n \n284 \n \n2 \n \n9 \n \nLRS June 30, 2016 \n \nAmount of Monthly Benefit \n$ 1 - 250 251 - 500 501 - 750 751 - 1,000 over 1,000 \nTotals \n \nRetirement Type \n \nService Disability Survivor \n \n21 \n \n-- \n \n-- \n \n109 \n \n-- \n \n4 \n \n66 \n \n-- \n \n-- \n \n33 \n \n-- \n \n-- \n \n23 \n \n-- \n \n1 \n \n252 \n \n0 \n \n5 \n \nGMPF June 30, 2016 \n \nAmount of Monthly Benefit \n \n$ \n \n1 - 49 \n \n50 - 100 \n \nover 100 \n \nTotals \n \nRetirement Type Service -- 915 -- \n915 \n \n139 \n \n Statistical Section \nRetired Members by Optional Form of Benefit \nERS June 30, 2016 \n \nAmount of Monthly Benefit \n$ 1 - 500 501 - 1,000 1,001 - 1,500 1,501 - 2,000 2,001 - 2,500 2,501 - 3,000 3,001 - 3,500 3,501 - 4,000 4,001 - 4,500 4,501 - 5,000 over 5,000 \nTotals \n \nMaximum Plan \n1,297 4,010 3,235 2,480 1,934 1,543 1,078 838 604 496 952 \n \nOption 1 \n383 1,132 1,029 938 674 534 386 272 199 122 278 \n \nForm of Benefit Option 2 Option 3 \n \n1,211 \n \n413 \n \n1,783 \n \n620 \n \n1,276 \n \n623 \n \n841 \n \n547 \n \n573 \n \n458 \n \n442 \n \n334 \n \n302 \n \n317 \n \n253 \n \n219 \n \n167 \n \n187 \n \n133 \n \n183 \n \n318 \n \n453 \n \nOption 4 \n643 860 774 563 543 605 645 686 661 671 2,017 \n \nOption 5A \n133 338 363 252 248 142 138 105 49 47 89 \n \nOption 5B \n59 195 216 266 234 204 167 139 114 82 162 \n \n18,467 \n \n5,947 \n \n7,271 \n \n4,354 \n \n8,668 \n \n1,904 \n \n1,838 \n \nMaximum Plan Option 1 \nOption 2 Option 3 Option 4 \nOption 5A Option 5B \n \nSingle life annuity \nReduced single life annuity with a guarantee of the remainder of the annuity savings fund account (contributions and interest), if any, to be paid upon the retiree's death 100% joint and survivor annuity with a popup option upon divorce \n50% joint and survivor annuity with a popup option upon divorce \nVarious options, including a specified monthly amount payable to a beneficiary upon the retiree's death, several period certain annuities of varying length, and a five-year accelerated benefit 100% joint and survivor annuity with a popup option upon divorce or the death of the beneficiary before the retiree \n50% joint and survivor annuity with a popup option upon divorce or the death of the beneficiary before the retiree \n \n140 \n \n(continued) \n \n Statistical Section \nRetired Members by Optional Form of Benefit \nPSERS June 30, 2016 \n \nAmount of Monthly Benefit \n$ 1 - 100 101 - 200 201 - 300 301 - 400 401 - 500 over 500 \nTotals \n \nMaximum Plan \n-- 4,410 4,100 2,681 1,702 1,251 \n \nForm of Benefit Option AA Option AB Option AC Option AD \n \n55 \n \n236 \n \n6 \n \n8 \n \n954 \n \n329 \n \n9 \n \n83 \n \n475 \n \n171 \n \n5 \n \n30 \n \n237 \n \n57 \n \n10 \n \n13 \n \n95 \n \n36 \n \n3 \n \n2 \n \n42 \n \n16 \n \n5 \n \n-- \n \nOption B \n14 313 166 69 25 18 \n \n14,144 \n \n1,858 \n \n845 \n \n38 \n \n136 \n \n605 \n \nMaximum Plan Option AA Option AB Option AC Option AD \nOption B \n \nSingle life annuity \n100% joint and survivor annuity \n50% joint and survivor annuity \nJoint and survivor annuity with a specified monthly amount payable to a beneficiary \nJoint and survivor annuity with the amount payable to a beneficiary limited by the age difference between the retiree and the beneficiary Annuity for a guaranteed period of time (5, 10, 15, or 20 years). If retiree outlives guarantee period, there is no benefit due after retiree's death \n \n141 \n \n(continued) \n \n Statistical Section \nRetired Members by Optional Form of Benefit \nGJRS June 30, 2016 \n \nAmount of Monthly Benefit \n$ 1 - 1,000 1,001 - 2,000 2,001 - 3,000 3,001 - 4,000 4,001 - 5,000 5,001 - 6,000 6,001 - 7,000 7,001 - 8,000 over 8,000 \n \nForm of Benefit Maximum Plan Spousal Coverage \n \n-- \n \n13 \n \n2 \n \n24 \n \n2 \n \n25 \n \n2 \n \n33 \n \n6 \n \n18 \n \n6 \n \n11 \n \n6 \n \n23 \n \n16 \n \n74 \n \n5 \n \n29 \n \nTotals \n \n45 \n \n250 \n \nMaximum Plan Single life annuity Spousal Coverage Indicates the member elected at enrollment that a survivor annuity be paid to a surviving spouse \n \nLRS June 30, 2016 \n \nAmount of Monthly Benefit \n \n$ 1 - 250 251 - 500 501 - 750 751 - 1,000 over 1,000 \nTotals \n \nMaximum Plan Option B1 Option B2 \n \nSingle life annuity 100% joint and survivor annuity 50% joint and survivor annuity \n \nForm of Benefit \n \nMaximum Plan Option B1 \n \n-- \n \n17 \n \n41 \n \n64 \n \n35 \n \n19 \n \n8 \n \n20 \n \n8 \n \n13 \n \nOption B2 \n4 8 12 5 3 \n \n92 \n \n133 \n \n32 \n \nGMPF and SEAD-Active and SEAD-OPEB June 30, 2016 \nThe GMPF Plan provides a benefit only in one form, a life annuity. All 915 current retirees, therefore, have this same form of benefit. The SEAD-Active and SEAD-OPEB plans provide only a lump sum death benefit to a member's beneficiary(ies). \n \n142 \n \n Top Participatory Employers FY10 \n \nStatistical Section \n \nERS \nDepartment of Corrections Department of Behavioral Health and Developmental Disability Department of Transportation Department of Labor Department of Juvenile Justice Department of Natural Resources Department of Human Resources Department of Driver Services Department of Community Health Department of Revenue \nTotal Top Employers Total ERS Member Count \nPSERS \nGwinnett County Schools Cobb County Schools Dekalb County Schools Clayton County Schools Muscogee County Schools Henry County Schools Cherokee County Schools Forsyth County Schools Richmond County Schools Paulding County Schools \nTotal Top Employers Total PSERS Member Count \nGJRS \nCouncil of Superior Court Judges Council of State Court Judges Prosecuting Attorney's Council Council of Juvenile Judges \nTotal Top Employers Total GJRS Member Count \nData from 9 years prior is unavailable. FY10 data is the first available. \nData for SEAD-Active and SEAD-OPEB is not available. \n \nMember Count % of total plan \n \n12,527 6,869 4,846 3,867 3,679 2,079 1,942 1,674 1,351 1,154 \n39,988 68,567 \n \n18.2% 10.0% \n7.1% 5.7% 5.4% 3.0% 2.8% 2.4% 2.0% 1.7% \n58.3% \n \n3,931 2,471 2,234 1,382 \n970 909 902 894 877 715 \n15,285 39,962 \n \n9.8% 6.2% 5.6% 3.4% 2.4% 2.3% 2.3% 2.2% 2.2% 1.8% \n38.2% \n \n203 \n \n41.0% \n \n108 \n \n21.8% \n \n96 \n \n19.4% \n \n71 \n \n14.4% \n \n478 \n \n96.6% \n \n495 \n \n143 \n \n Top Participatory Employers FY16 \n \nStatistical Section \n \nERS \nDepartment of Corrections Department of Behavioral Health and Developmental Disabilities Department of Transportation Department of Juvenile Justice Department of Human Services Department of Public Safety Department of Natural Resources Department of Labor Department of Revenue Department of Community Health \nTotal Top Employers Total ERS Member Count \nPSERS \nGwinnett County Schools Cobb County Schools Dekalb County Schools Clayton County Schools Forsyth County Schools Richmond County Schools Houston County Schools Muscogee County Schools Cherokee County Schools Coweta County Schools \nTotal Top Employers Total PSERS Member Count \nGJRS \nCouncil of Superior Courts Council of State Court Judges Prosecuting Attorney's Council Council of Juvenile Courts \nTotal Top Employers Total GJRS Member Count \nSEAD-Active and SEAD-OPEB \nDepartment of Corrections Department of Transportation Department of Human Services Department of Behavioral Health and Developmental Disabilities Department of Juvenile Justice Department of Natural Resources Department of Public Safety Department of Labor Department of Revenue Department of Community Health \nTotal Top Employers Total Active Member Count \n \nMember Count % of total plan \n \n11,133 4,118 3,967 3,528 3,327 1,723 1,638 1,346 970 949 \n32,699 59,766 \n3,531 2,280 2,219 1,346 \n864 801 758 753 688 618 \n13,858 34,874 \n212 126 110 \n75 \n523 526 \n5,473 2,799 1,909 1,713 1,479 1,138 1,022 \n913 517 490 \n17,453 31,869 \n \n18.63% 6.89% 6.64% 5.90% 5.57% 2.88% 2.74% 2.25% 1.62% 1.59% \n54.71% \n10.13% 6.54% 6.36% 3.86% 2.48% 2.30% 2.17% 2.16% 1.97% 1.77% \n39.74% \n40.30% 23.95% 20.91% 14.26% \n99.43% \n17.17% 8.78% 5.99% 5.38% 4.64% 3.57% 3.21% 2.86% 1.62% 1.54% \n54.76% \n \n144 \n \n 145 \n \nSystem ERS \nPSERS GJRS LRS GDCP SCJRF DARF SEAD GMPF \n \nNet Position $ 12.4 billion \n$ 804 million $403 million $ 31 million $ 109.7 million \n \nEmployer and Nonemployer Contributions Old Plan: 19.97% New Plan: 24.72% GSEPS 21.69% \n($595 mil) \n$28.6 million \n6.98% ($7.6 million) \n0% (None) \nNone \n \nEmployee Contributions \nOld Plan: 6% (with 4.75% pickup) New Plan: 1.25% \nGSEPS: 1.25% ($32 mil) \n$36 yr prior July 1, 2012 $90 yr after July 1, 2012 ($1.9 million) \n7.5% +2.5% Spousal ($5.5 million) \n8.5% (with 4.75% pickup) \n($328 thousand) \n \nActive Members Old Plan: (0.20%) 100 New Plan: (52.8%) 31,571 GSEPS: (47%) 28,095 Total: 59,766 \n34,874 \n526 \n224 \n \n7.5% ($14.7 million) \n \n13,533 \n \n$ 8 thousand \n \n$1.2 million \n \nNone \n \nNone \n \nInactives \n57,995 \n50,672 61 154 \n85,310 None \n \n$ 2 thousand \n \n$51 thousand \n \nNone \n \nNone \n \nNone \n \n$1.4 billion \n \nNone \n \nNew Plan: 0.25% Old Plan: 0.50% \n($4.5 million) \n \nNo. Insured: 31,869 \n \n918 \n \n$ 17.7 million \n \n$2 million \n \nNone \n \n13,882 \n \nNone \n \nRetirees Total: 48,449 \nService: 36,843 Beneficiary: 5,573 Disability: 5,380 \nInv. Sep.: 506 Law. Enf.: 147 \n17,626 \n \nAnnual Payment \n \nAverage Monthly Benefit \n \n$1.3 billion \n \n$2,299 \n \n$58 million \n \n$276 \n \n295 \n \n$19 million \n \n$5,456 \n \n257 \n \n$1.7 million \n \n$563 \n \n1 \n \n$9 thousand \n \nPaid Annually \n \n16 \n \n$1.2 million \n \n$5,750 \n \n5 \n \n$51 thousand \n \n$855 \n \nNo. Insured: 40,793 \n \nNo. of Claims: 1,117 Amt. Pd: $37.2 mil \n \nAverage Claim: $33,353 \n \n915 \n \n$963 thousand \n \n$91 \n \nStatistical Data at June 30, 2016 \n \nStatistical Section \n \n "},{"id":"dlg_ggpd_y-ga-be400-b-pa1-b2015-belec-p-btext","title":"Comprehensive annual financial report fiscal year ended June 30, 2015","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":null,"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Employees' Retirement System of Georgia"],"dc_date":["2014/2015"],"dcterms_description":["Report year ends June 30","Description based on: 2010; title from PDF title page (Georgia Government Publications database, viewed September 21, 2016)","Latest issue consulted: 2014 (viewed September 21, 2016)"],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["[Atlanta, Georgia] : Employees' Retirement System of Georgia, [2010]-"],"dc_relation":["Annual report - Employees' Retirement System of Georgia"],"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Employees' Retirement System of--Georgia","Retirement income--Georgia"],"dcterms_title":["Comprehensive annual financial report fiscal year ended June 30, 2015"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-be400-b-pa1-b2015-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-be400-b-pa1-b2015-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":["1 online resource"],"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"2015 Employees' Retirement System of Georgia Comprehensive Annual Financial Report \n \nERS \n \nGMPF \n \nGJRS \n \nERSGA \n \nLRS \n \nPSR \n \nGDCP \n \nPSERS \n \nFiscal Year Ended June 30, 2015 \nA component unit of the State of Georgia \n \nE RSGA \nEmployees' Retirement System of Georgia \nServing those who serve Georgia \n \n Our Mission \nOur mission is to be guardian of the retirement plans on behalf of the State of Georgia for the ultimate benefit of the members, retirees and beneficiaries. \nOur vision is to use our passion for excellence to become the\"Best Managed\"retirement system in the country, utilizing stateof-the-art technology, and knowledgeable, customer-focused staff to best serve customers and to protect the retirement system for all of our current and future members. \nOur Values \nOur Core Values are: \nQuality execution Accurate results Continuous improvement Knowledgeable and customer focused staff Sound and secure investment of funds \n \nE RSGA \n \nServing those who serve Georgia \n \nEmployees' Retirement System of Georgia \n \n Employees' Retirement System of Georgia \nComprehensive Annual Financial Report \nFiscal Year Ended June 30, 2015 \n \nERS \n \nGMPF \n \nGJRS \n \nERSGA \n \nLRS \n \nPSR \n \nGDCP \n \nPSERS \n \nJames A. Potvin Executive Director \nA component unit of the State of Georgia \n \nE RSGA \nEmployees' Retirement System of Georgia \nServing those who serve Georgia \n \n Table of Contents \n \nIntroductory Section \n \nBoards of Trustees \n \n4 \n \nLetter of Transmittal \n \n5 \n \nCertificate of Achievement for Excellence in Financial Reporting \n \n7 \n \nPPCC Recognition Award for Funding \n \n8 \n \nAdministrative Staff and Organization \n \n9 \n \nOrganizational Chart \n \n10 \n \nFinancial Section \n \nIndependent Auditors'Report \n \n12 \n \nManagement's Discussion and Analysis (Unaudited) \n \n14 \n \nBasic Financial Statements: \n \nCombining Statement of Fiduciary Net Position as of June 30, 2015 \n \n19 \n \nDefined Benefit Plans-Combining Statement of Fiduciary Net Position \n \nas of June 30, 2015 \n \n20 \n \nCombining Statement of Changes in Fiduciary Net Position \n \nfor the Year Ended June 30, 2015 \n \n21 \n \nDefined Benefit Plans-Combining Statement of Changes in Fiduciary Net \n \nPosition for the Year Ended June 30, 2015 \n \n22 \n \nNotes to Financial Statements \n \n23 \n \nRequired Supplementary Information (Unaudited) \n \nDefined Benefit Pension Plans: \n \nSchedules of Employers' and Nonemployers' Contributions \n \n43 \n \nSchedules of Employers' and Nonemployers' Net Pension Liability \n \n45 \n \nSchedules of Changes in Employers' and Nonemployers' Net \n \nPension Liability \n \n46 \n \nSchedule of Investment Returns \n \n49 \n \nDefined Benefit OPEB Plans \n \nSchedules of Funding Progress \n \n50 \n \nSchedules of Employer Contributions \n \n51 \n \nNotes to Required Supplementary Information (Unaudited) \n \n52 \n \nAdditional Information \n \nSchedule of Administrative Expenses - Contributions and Expenses 55 \n \nSchedule of Investment Expenses \n \n56 \n \nInvestment Section \n \nInvestment Overview \n \n58 \n \nPooled Investment Fund/Rates of Return \n \n59 \n \nAsset Allocation/Investment Summary \n \n60 \n \nSchedule of Fees and Commissions/Twenty Largest Equity Holdings 61 \n \nFixed Income Holdings \n \n62 \n \nActuarial Section \n \nActuary's Certification Letters \n \n64 \n \nSummary of Plan Provisions \n \n71 \n \nSummary of Actuarial Assumptions \n \n72 \n \nActive Members \n \n83 \n \nMember and Employer Contribution Rates \n \n85 \n \nDefined Benefit Pension Plans \n \nSchedules of Funding Progress \n \n87 \n \nSchedule of Retirees Added to and Removed from Rolls \n \n89 \n \nAnalysis of Change in Unfunded Accrued Liability (UAL) \n \n91 \n \nSolvency Test Results \n \n94 \n \nStatistical Section \n \nIntroduction \n \n98 \n \nAdditions by Source - Contribution/Investment Income \n \n99 \n \nDeductions by Type \n \n102 \n \nChanges in Fiduciary Net Position \n \n106 \n \nNumber of Retirees \n \n108 \n \nAverage Monthly Payments to Retirees \n \n109 \n \nAnnual Benefit \n \n110 \n \nWithdrawal Statistics \n \n111 \n \nAverage Monthly Benefit Payment for New Retirees \n \n112 \n \nRetired Members by Retirement Type \n \n117 \n \nRetired Members by Optional Form of Benefit \n \n119 \n \nTop Participatory Employers \n \n122 \n \nStatistical Data at June 30, 2015 \n \n124 \n \n Introductory Section \n \nERS \n \nGMPF \n \nGJRS \n \nERSGA \n \nLRS \n \nPSR \n \nGDCP \n \nPSERS \n \nE RSGA \nEmployees' Retirement System of Georgia \nServing those who serve Georgia \n \n Introductory \nBoards of Trustees \nEmployees'Retirement System, Legislative Retirement System, Georgia Defined Contribution Plan, and Georgia Military Pension Fund \n \nLonice Barrett Chair \n \nSid Johnson Vice-Chair \n \nHarold Reheis \n \nFrank F. Thach, Jr. \n \nSteven N. McCoy Public School Employees Retirement System* \n \nGreg S. Griffin \n \nEli P. Niepoky State Employees'Assurance Department** \n \nMichael Lowe Georgia Judicial Retirement System* \n \nRichard Taylor \n \nMark Butler \n \nH. Phillip Bell \n \nDaniel J. Craig \n \nRon Mullins \n \nE. Trenton Brown III \n \n*The PSERS and GJRS boards are comprised of the members of the ERS board and additional members shown under each plan. **SEAD -- ERS Board Members Greg S. Griffin, Steven N. McCoy, Lonice Barrett, and Sid Johnson serve in addition to the two members shown above. \n4 \n \n Introductory \n \nE RSGA \n \nServing those who serve Georgia \n \nEmployees' Retirement System of Georgia \n \nLetter of Transmittal \n \nTwo Northside 75 Atlanta, GA 30318 \n \nDecember 21, 2015 \n \nI am pleased to present the Comprehensive Annual Financial Report for the fiscal year ended June 30, 2015 of the retirement systems and programs administered by the Employees' Retirement System of Georgia (the System). The management of the System is responsible for the accuracy, completeness and fairness of the presentation, including all disclosures. It is to the best of our knowledge and belief that the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the System. \nProfile of the System \nThe Employees'Retirement System of Georgia was established to provide benefits for all State employees in 1949. Plans administered by the System include the Employees' Retirement System (ERS), the Legislative Retirement System (LRS) established in 1979, the Public School Employees Retirement System (PSERS) established in 1969, the Georgia Defined Contribution Plan (GDCP) established in 1992, the Georgia Judicial Retirement System (GJRS) established in 1998, and the Georgia Military Pension Fund (GMPF) established in 2002. In addition, the Board of Trustees is responsible for a Group Term Life Insurance Plan (SEAD), the 457 Plan established in 1974 and the 401(k) Plan established in 1994. A summary of each plan can be found on pages 23 through 30 of this report. The investments of all plans are pooled together into one fund except for the three defined contribution (DC) plans, which are maintained individually. \nThe ERS, LRS, GDCP, GMPF, 401(k) and 457 plans are administered by a 7-member Board made up of 3 ex-officio members, 1 governor-appointed member, and 3 Board-appointed members. PSERS has the same Board as ERS with 2 additional governor-appointed members. GJRS has the same Board as ERS with 3 additional governor-appointed members. \nAs of June 30, 2015, the System's defined benefit (DB) plans served a total of 125,294 active members and 65,591 retirees/beneficiaries from 898 employers around the state. There were 51,550 participants in the 401(k) plan with a total account balance of $616 million. The 457 plan had 13,135 participants with a balance of $576 million. There are 488 participating employers from around the state in the 457 and 401(k) plans. \nLegislation \nIn the 2015 Session, one bill was passed by the General Assembly and signed by the Governor that could impact ERS and its Systems. Act 126 allows all retirement systems under Title 47 to invest in mutual funds and commingled funds. \nThe following fiscal retirement bills potentially affecting ERS and its Systems were introduced in the 2015 Session. In accordance with Georgia law, they were forwarded for actuarial study by the House and Senate Retirement Committees, and will be considered for passage during the 2016 Session. \n \nHB 421 is a companion bill to HB 310, which creates a new Department of Community Supervision. Certain employees of the new Department will remain eligible for enhanced disability benefits once transferred. Certain employees of the new Department currently not eligible for enhanced disability benefits would become eligible upon passage. \nHB 508 changes the normal retirement age for Appellate Court Judges eligible to receive pension benefits from age 65 to age 60. \nHB 605 changes the vesting requirements for judges moving from part-time to full-time service and allows for a proportional calculation of benefits upon transfer to full-time service and subsequent retirement. \nHB 687 allows any JRS member who was previously an active memeber of ERS to transfer service to JRS. \nHB 690 allows certain law enforcement members to purchase up to five years of certain local government authority service by paying full actuarial cost. \nSB 149 allows members with at least two years of ERS service to purchase up to five years of military service performed on or after January 1, 1990. \nSB 243 allows Legislative Counsel employees to choose to become JRS members by December 31, 2016 or within 90 days of employment. \nSummary of Financial Information \nThe Management of the System is charged with the responsibility of maintaining a sound system of internal accounting controls. The objectives of such a system are to provide management with reasonable assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorizations, and that they are recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. The concept of reasonable assurance recognizes that first, the cost of a control should not exceed the benefits likely to be derived, and second, the evaluation of the cost and benefits requires estimates and judgments by management. \nEven 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. \nPlease refer to the Management's Discussion and Analysis starting on page 14 of this report for an overview of the financial status of the System, including a summary of the System's Fiduciary Net Position, Changes in Fiduciary Net Position, and Asset Allocations. \n \n5 \n \n Introductory \n \nIn FY2015, the pooled fund generated a return of 3.7%. The fund continues to invest in a mix of high-quality bonds and stocks which allows the System to participate in rising markets while controlling the downside risks. This has proven to be a successful strategy for other markets and for our System. For further information on investments of the pooled fund, please refer to pages 58 through 62 of this report. \nThe objective of ERS pension trust funds is to meet long-term benefit promises through contributions that remain approximately level as a percent of member payroll over time while maintaining an actuarially sound system. Historical information relating to the progress in meeting this objective is presented on pages 50, 87, and 88. The latest actuarial valuations as of June 30, 2014 showed the funded ratio of all five defined benefit plans increasing. The following table shows the change in funding percentage for each of the pension systems: \n \nERS PSERS LRS GJRS GMPF \n \nFY2013 71.4% 79.9% 118.4% \n104.8% 40.4% \n \nFY2014 72.8% 82.8% \n122.6% 108.8% \n44.8% \n \nFurther information regarding the funding condition of the pension plans can be found in the Actuarial Section of this report. \n \nExcellence in Financial Reporting \nFor the fifth consecutive year, the Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Employees'Retirement System of Georgia for its comprehensive annual financial report for the fiscal year ended June 30, 2014. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. \nA 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. \n \nInitiatives \nIn FY2015, ERS completed a number of projects, with particular emphasis on Governmental Accounting Standards Board (GASB) compliance, the Peach State Reserves program, member education, and technology infrastructure. \n \nPeach State Reserves and Member Education More than 40% of our active population in the ERS plan are members of the current tier, known as the Georgia State Employees' Pension and Savings program (GSEPS). As a result of their automatic enrollment into the 401(k) plan upon hire, the 401(k) plan is adding nearly 5,000 net accounts per year. In 2014, new legislation increased the default employee savings rate to 5% of pay, and 48% of the active GSEPS members are saving at least that much (up from 23% just a year ago). In anticipation of continued growth in the number and size of accounts, we have taken a number of steps to help members with the responsibility of managing their accounts. \nFirst, we overhauled our new-hire communication tools. Our initial letters now combine information about both their DB and DC plans in a single place. While we still have separate websites for each type of plan, we made changes designed to make their initial registration more turn-key. Further, we created multiple new videos and a new hire webinar to provide overviews of the plans. \nFinally, we are very pleased at the response to our rollout of a new series of financial literacy seminars. The four seminars are designed to improve general financial knowledge, geared toward the various stages of life and/or career, while mixing in information about how our retirement and benefit programs support our members' needs at the different stages. We delivered 68 live seminars in the first 12 months to groups of approximately 20 people. They were so well-received that we have had employers asking us to repeat the sessions. \nTechnology We kept our IT department busy this year, as always, with hundreds of work items and minor enhancement requests. The development group also provided postlive-date support to a number of new system modules and laid the groundwork for key online functional enhancements to be added over the next year or so. In addition, the operations group upgraded network speed and capacity and implemented a new backup solution providing faster, more reliable data transmission to our backup facility. \nAcknowledgements \nThis report reflects the combined effort of our staff under the Board's leadership. Copies of this report, along with other valuable plan information, can be downloaded from the System's website. \nI would like to express my sincere thanks to the Boards of Trustees for their leadership and support. Many thanks are also extended to the offices of the Governor, Lieutenant Governor, members of the House and Senate Retirement Committees and their staff, members of the House and Senate, and the department officials whose support and assistance have helped ERS accomplish its mission over the years. \nRespectfully submitted, \n \nGASB Following on the heels of last year's implementation of the GASB Statement No. 67 plan-level reporting standards, in FY 2015 we completed our part in the implementation of GASB Statement No. 68 employer reporting requirements. ERS participated on the statewide GASB Steering Committee, which analyzed the new requirements and coordinated the creation of procedures by which we will provide relevant information for our employers and the State to complete their financial reporting for FY 2015 and future years. We further worked with our actuaries and auditors to develop standardized employer information packages and establish audit timing and procedures for the information prior to distribution. \n \nJames A. Potvin, Executive Director Employees' Retirement System of Georgia \n6 \n \n Introductory \n7 \n \n Introductory \nP P CC \nPublic Pension Coordinating Council Recognition Award for Funding \n2015 \nPresented to \nEmployees' Retirement System of Georgia \nIn recognition of meeting professional standards for plan funding as \nset forth in the Public Pension Standards. \nPresented by the Public Pension Coordinating Council, a confederation of National Association of State Retirement Administrators (NASRA) \nNational Conference on Public Employee Retirement Systems (NCPERS) National Council on Teacher Retirement (NCTR) \nAlan H. Winkle Program Administrator \n8 \n \n Introductory \n \nAdministrative Staff and Organization \n \nJames A. Potvin Executive Director \n \nCarlton Lenoir Deputy Director \n \nCharles W. Cary, Jr. CIO - Investment Services \n \nLaura L. Lanier Controller \n \nChris Hackett Director \nInformation Technology \n \nNicole Paisant Director \nHuman Resources \n \nSusan Anderson Chief Operating \nOfficer \n \nAngie Surface Director \nPeach State Reserves Quality Assurance \n \nConsulting Services \nCavanaugh Macdonald Consulting, LLC - Actuary KPMG LLP - Auditor JPMorgan Chase Bank, N. A. - Defined Contribution \nCustodian Aon Hewitt - Defined Contribution Consultant and Administrator \nInvestment Advisors* \nAlbritton Capital Management Baillie Gifford Overseas Limited Barrow, Hanley, Mewhinney \u0026 Strauss Cooke \u0026 Bieler Fisher Investments Mondrian Investment Partners Limited Sands Capital Management \n \nMedical Advisors \nHarold E. Sours, M.D., Atlanta, GA G. Lee Cross, M.D., Atlanta, GA Douglas Smith, M.D., Smyrna, GA William H. Biggers, M.D., Atlanta, GA Pedro F. Garcia, M.D., Atlanta, GA H. Rudolph Warren, M.D., Dunwoody, GA Quinton Pirkle, M.D., Atlanta, GA Marvin Bittinger, M.D., Gainesville, GA Joseph S. Wilkes, M.D., Atlanta, GA \n \n*See page 61 in the Investment Section for a summary of fees paid to Investment Advisors. \n \n9 \n \n Introductory \n \nOrganizational Chart \n \nBoard of Trustees \nExecutive Director \n \nExecutive Support \n \nDeputy Director \n \nChief Operating \nOfficer \n \nInvestment Services Division \n \nAccounting Division \n \nFinancial Management \nDivision \n \nMember Services Division \n \nOffice Administration \n \nInformation Technology \nDivision \n \nPeach State Reserves \n \nQuality Assurance \n \n10 \n \n Financial Section \n \nERS \n \nGMPF \n \nGJRS \n \nERSGA \n \nLRS \n \nPSR \n \nGDCP \n \nPSERS \n \nE RSGA \nEmployees' Retirement System of Georgia \nServing those who serve Georgia \n \n Financial \n \nIndependent Auditors' Report \n \nKPMG LLP Suite 2000 303 Peachtree Street, NE Atlanta, GA 30308-3210 \n \nThe Board of Trustees Employees' Retirement System of Georgia: \n \nReport on the Financial Statements We have audited the accompanying financial statements of the Employees' Retirement System of Georgia (the System), a component unit of the State of Georgia, as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the System's basic financial statements, as listed in the table of contents. \nManagement's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \nAuditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. \nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \n \nReport on Summarized Comparative Information We have previously audited the System's 2014 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated October 31, 2014. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2014 is consistent, in all material respects, with the audited financial statement from which it has been derived. \nOther Matters Required Supplementary Information U.S. generally accepted accounting principles require that the management's discussion and analysis, schedules of employers' and nonemployers' contributions, schedules of employers'and nonemployers'net pension liability, schedules of changes in employers' and nonemployers' net pension liability, schedule of investment returns, schedules of funding progress and schedules of employer contributions on pages 1418 and 4351 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \nSupplementary and Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the System's basic financial statements. The schedules of administrative expenses and investment expenses, introductory, investment, actuarial, and statistical sections are presented for purposes of additional analysis and are not a required part of the basic financial statements. \n \nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. \nOpinion In our opinion, the financial statements referred to above present fairly, in all material respects, the fiduciary net position of the System as of June 30, 2015, and the changes in fiduciary net position for the year then ended in accordance with U.S. generally accepted accounting principles. \n \nThe schedules of administrative expenses and investment expenses are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedules of administrative expenses and investment expenses are fairly stated in all material respects in relation to the basic financial statements as a whole. \n \n12 \n \n Financial \nThe introductory, investment, actuarial, and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated September 30, 2015 on our consideration of the System's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the System's internal control over financial reporting and compliance. December 21, 2015 \n13 \n \n Financial \nManagement's Discussion and Analysis (Unaudited) \nJune 30, 2015 \nThis section provides a discussion and analysis of the financial performance of the Employees'Retirement System of Georgia (the System) for the year ended June 30, 2015. The discussion and analysis of the System's financial performance is within the context of the accompanying basic financial statements, notes to the financial statements, required supplementary schedules, and additional information following this section. \nThe System is responsible for administering a cost-sharing, multiple-employer defined benefit pension plan for various employer agencies of Georgia, along with six other defined benefit pension plans, three defined benefit OPEB plans and funds, and three defined contribution plans. \nThe defined benefit pension plans include: \n Employees'Retirement System (ERS)  Public School Employees Retirement System (PSERS)  Legislative Retirement System (LRS)  Georgia Judicial Retirement System (GJRS)  Georgia Military Pension Fund (GMPF)  Superior Court Judges Retirement Fund (SCJRF)  District Attorneys Retirement Fund (DARF) \nThe defined benefit OPEB plans and funds include: \n State Employees'Assurance Department Active Members Trust Fund (SEAD-Active)  State Employees'Assurance Department Retired and Vested Inactive Members Trust Fund (SEAD-OPEB)  Survivors Benefit Fund (SBF) \nThe defined contribution retirement plans include: \n Georgia Defined Contribution Plan (GDCP)  State of Georgia Employees'Deferred Compensation Plan (401(k) Plan)  State of Georgia Employees'Deferred Compensation Plan (457 Plan) \nFinancial Highlights \nThe following highlights are discussed in more detail later in this analysis: \n The net position of the System decreased by $308.8 million, or 1.8%, from $17.3 billion at June 30, 2014 to $17.0 billion at June 30, 2015. The decrease in net position from 2014 to 2015 was due to total deductions exceeding investment income for the year. \n For the year ended June 30, 2015, the total additions to net position were $1.3 billion compared to $3.2 billion for the year ended June 30, 2014. For the year ended June 30, 2015, the additions consisted of employer, nonemployer contributing entities (nonemployer), and member contributions totaling $718.6 million, insurance premiums of $4.8 million, net investment income of $609.6 million, and participant fees of $1.3 million. \n Net investment income of $609.6 million in 2015 (comprised of interest and dividend income, the change in fair value of investments, and other, reduced by investment expenses) represents a $2.0 billion decrease, compared to the net investment income of $2.6 billion for the year ended June 30, 2014. The net investment income was lower in 2015 compared to 2014 because of lower rates of return in the fixed income and equity markets in 2015. \n The total deductions were $1.64 billion and $1.55 billion for the years ended June 30, 2015 and 2014, respectively. For the year ended June 30, 2015, the deductions consisted of benefit payments of $1.56 billion, refunds of $31.0 million, death benefits of $36.9 million, and administrative expenses of $15.6 million. \n Benefit payments paid to retirees and beneficiaries had an increase of $86.7 million, or 5.9%, from $1.47 billion in 2014 to $1.56 billion in 2015, resulting primarily from an increase in the number of new retirees and beneficiaries applying for benefits across all plans. \n \n14 \n \n(continued) \n \n Financial \nManagement's Discussion and Analysis (Unaudited) \n \nOverview of the Financial Statements \nThe basic financial statements include (1) the combining statement of fiduciary net position and changes in fiduciary net position, (2) the defined benefit plans combining statements of fiduciary net position and changes in fiduciary net position, and (3) notes to the financial statements.The System also includes in this report additional information to supplement the financial statements. \nIn addition, the System presents six types of required supplementary schedules, which provide historical trend information about the plan. The six types of schedules include (1) Schedule of Employers' and Nonemployers' Contributions (2) Schedule of Employers' and Nonemployers' Net Pension Liability (3) Schedule of Changes in Employers' and Nonemployers' Net Pension Liability (4) Schedule of Investment Returns (5) Schedule of Funding Progress and (6) Schedule of Employer Contributions. \nThe System prepares its financial statements on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles as promulgated by the GASB. These statements provide information about the System's overall financial status. \n \nDescription of the Financial Statements \n \nThe Combining Statement of Fiduciary Net Position is the statement of financial position presenting information that includes all of the System's assets and liabilities, with the balance representing the Net Position Restricted for Pensions and OPEB. The investments of the System in this statement are presented at fair value. This statement is presented on page 19. \n \nThe Combining Statement of Changes in Fiduciary Net Position reports how the System's net position changed during the fiscal year. The additions include contributions to the retirement plans from employers, nonemployers, and members, group life insurance premiums, participant fees, and net investment income, which includes interest and dividends and the net increase in the fair value of investments, net of investment expenses. The deductions include benefit payments, life insurance death benefit payments, refunds of member contributions and interest, and administrative expenses. This statement is presented on page 21. \n \nThe Defined Benefit Plans' Combining Statement of Fiduciary Net Position and the Combining Statement of Changes in Fiduciary Net Position present the financial position and changes in financial position for each of the funds administered by the System. These statements are on pages 20 and 22, respectively. \n \nNotes to the Financial Statements are presented to provide the information necessary for a full understanding of the financial statements. The notes to the financial statements begin on page 23. \n \nRequired Supplementary Information begins on page 43. The required schedules are discussed as follows:  The Schedule of Employers' and Nonemployers' Contributions presents the required contributions and the percent of required contributions actually contributed. \n \n The Schedule of Employers' and Nonemployers' Net Pension Liability presents the components of the net pension liability as of the fiscal year end and the fiduciary net position as a percentage of the total pension liability as of that date. This trend information will be accumulated to display a ten year presentation. \n \n The Schedule of Changes in Employers' and Nonemployers' Net Pension Liability presents total pension liability and is measured as total pension liability less the amount of the fiduciary net position. This trend information will be accumulated to display a ten-year presentation. \n \n The Schedule of Investment Returns presents historical trend information about the annual money-weighted rate of return on plan investments, net of plan investment expense. This trend information will be accumulated to display a ten-year presentation. \nThree of the required schedules above, the Schedule of Employers' and Nonemployers' Contributions, the Schedule of Employers' and Nonemployers' Net Pension Liability, and Schedule of Changes in Employers' and Nonemployers' Net Pension Liability are applicable to five of the defined benefit pension plans: ERS, PSERS, LRS, GJRS, and GMPF. \n \nTwo additional required schedules, the Schedule of Funding Progress and the Schedule of Employer Contributions relate to defined benefit OPEB plans, which are postemployment benefit plans.The Schedule of Funding Progress presents historical trend information about the actuarially determined funded status of the plans from a long-term, ongoing plan perspective, and the progress made in accumulating sufficient assets to fund benefit payments as they become due. The Schedule of Employer Contributions presents historical trend information about the annual required contributions of employers and percentage of such contributions in relation to actuarially determined requirements for the years presented. \n \nNotes to Required Supplementary Information are presented to provide the information necessary for a full understanding of the supplementary schedules. The notes to required supplementary schedules begin on page 52. \n \nAdditional information is presented, beginning on page 55, which includes the Schedule of Administrative Expenses  Contributions and Expenses. The Schedule of Administrative \n \nExpenses  Contributions and Expenses presents the expenses incurred in the administration of these plans and funds, and the contributions from each plan and fund to provide \n \nfor these expenses. On page 56, the Schedule of Investment Expenses summarizes investment advisory and other related costs. 15 \n \n(continued) \n \n Financial \nManagement's Discussion and Analysis (Unaudited) \nFinancial Analysis of the System \nA summary of the System's net position at June 30, 2015 and 2014 is as follows: \n \nAssets: Cash, cash equivalents, and receivables Investments Capital assets, net Total assets \nLiabilities: Due to brokers and accounts payable Net position \n \nNet Position (in thousands) \n \n2015 \n \n2014 \n \nAmount Change \n \nPercentage Change \n \n$ \n \n273,602 \n \n16,714,722 \n \n6,850 \n \n16,995,174 \n \n384,416 16,917,235 \n6,797 17,308,448 \n \n(110,814) (202,513) \n53) (313,274) \n \n(28.8) % (1.2) 0.8) (1.8) \n \n37,251 $ 16,957,923 \n \n41,756 17,266,692 \n \n(4,505) (308,769) \n \n(10.8) (1.8) % \n \n(continued) 16 \n \n Financial \nManagement's Discussion and Analysis (Unaudited) \nThe following table presents the investment allocation at June 30, 2015 and 2014: \nAsset allocation at June 30 (in percentages): Equities: Domestic International Private equity Domestic obligations: U.S. Treasuries U.S. Agencies Corporate and other bonds International obligations: Governments Corporates Mutual and common collective trust funds and separate accounts \nAsset allocation at June 30 (in thousands): Equities: Domestic International Private equity Domestic obligations: U.S. Treasuries U.S. Agencies Corporate and other bonds International obligations: Governments Corporates Mutual and common collective trust funds and separate accounts \n \n2015 \n48.8 % 16.5 \n0.3 \n11.4 0.1 14.2 \n0.5 1.0 7.2 \n \n2014 \n49.5 % 17.7 \n0.1 \n9.3 0.1 14.0 \n0.5 1.7 7.1 \n \n$ 8,161,676 \n2,753,458 51,767 \n \n$ 8,372,234 \n2,999,387 21,914 \n \n1,900,292 10,005 \n2,382,411 \n \n1,573,719 10,028 \n2,374,957 \n \n77,112 173,609 1,204,392 \n$ 16,714,722 \n \n78,652 276,764 1,209,580 \n$ 16,917,235 \n \nThe total investment portfolio decreased by $203 million from 2014, which is due to the lower rates of return in the fixed income and equities markets. \nGASB Statement No. 67 requires the System to report an annual money-weighted rate of return on plan investments, net of plan investment expense. A money-weighted return is weighted by the amount of dollars in the fund at the beginning and end of the performance period. A money-weighted return is highly influenced by the timing of cash flows into and out of the fund and is a better measure of an entity or person who controls the cash flows into and out of the fund. The nondiscretionary cash flows of the plan, primarily contributions and benefit payments, have a considerable impact on the money-weighted returns of the portfolio. The money-weighted rate of return for the fiscal year ended June 30, 2015 was (5.32)%. \nThe investment rate of return in fiscal year ended June 30, 2015 was 3.7% with a 4.4% return on equities, a 16.4% return on private equity (inception date of October 3, 2013) and a 2.1% return on fixed income investments. The five-year annualized rate of return on investments at June 30, 2015 was 11.3%, with a 15.3% return on equities and a 3.1% return on fixed income investments. \n(continued) 17 \n \n Financial \nManagement's Discussion and Analysis (Unaudited) \nA summary of the changes in the System's net position for the year ended June 30, 2015 is as follows (dollars in thousands): \n \nAdditions: Employer contributions Nonemployer contributions Member contributions Participant fees Insurance premiums Net investment income Other Total additions \nDeductions: Benefit payments Refunds Death benefits Administrative expenses Total deductions Net increase (decrease) in net position \n \nChanges in Net Position (in thousands) \n \n2015 \n \n2014 \n \nAmount Change \n \nPercentage Change \n \n$ 537,253 42,520 \n138,871 1,298 4,768 \n609,626 14 \n1,334,350 \n \n445,214 39,107 \n126,732 1,122 5,109 \n2,573,389 7 \n3,190,680 \n \n92,039 3,413 \n12,139 176 (341) \n(1,963,763) 7 \n(1,856,330) \n \n20.7 % 8.7 9.6 \n15.7 (6.7) (76.3) 100.0 (58.2) \n \n1,559,551 31,044 36,908 15,616 \n1,643,119 $ (308,769) \n \n1,472,803 27,044 33,946 14,476 \n1,548,269 1,642,411 \n \n86,748 4,000 2,962 1,140 \n94,850 (1,951,180) \n \n5.9 14.8 \n8.7 7.9 6.1 (118.8) % \n \nAdditions  The System accumulates resources needed to fund benefit payments through contributions and returns on invested funds. In fiscal year 2015, total contributions increased $107.6 million, or 17.6%, primarily because of an increase in the employer contribution rates coupled with modest overall salary increases. Net investment income decreased by $2.0 billion, or 76.3%, because of lower rates of return in the fixed income and equities markets. \nDeductions  For fiscal year 2015, total deductions increased 6.1%, primarily because of a 5.9% increase in benefit payments. This was due to an increase in the number of retirees receiving benefit payments across all defined benefit pension plans. Refunds increased by 14.8%, which was primarily due to an increase in the number of refunds processed during 2015. Death benefits increased by 8.7%, which was primarily due to an increase in the number of death claims processed during 2015. Administrative expenses increased by 7.9% over the prior year, primarily due to an increase in required employer retirement contributions, contractual services, actuarial services, and professional fees. \nRequests for Information \nThis financial report is designed to provide a general overview of the System's finances for all those with interest in the System's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to Employees' Retirement System of Georgia, Two Northside 75, Suite 300, Atlanta, GA 30318. \n \n18 \n \n Financial \nCombining Statement of Fiduciary Net Position \nJune 30, 2015 (with comparative totals as of June 30, 2014) (In thousands) \n19 \n \nAssets \nCash and cash equivalents \nReceivables: Contributions Interest and dividends Due from brokers for securities sold Other Unremitted insurance premiums \nTotal receivables \n \nDefined Benefit Plans \n \n$ \n \n25,983 \n \n30,512 -- -- \n1,549 699 \n32,760 \n \nInvestments - at fair value: Domestic obligations: U.S. Treasuries U.S. Agencies Corporate and other bonds International obligations: Governments Corporates Equities: Domestic International Private equity Mutual funds, common collective trust funds, and separate accounts Equity in pooled investment fund \nTotal investments \nCapital assets, net \nTotal assets \n \n-- -- -- \n-- -- \n-- -- -- \n-- 15,610,530 \n15,610,530 6,850 \n15,676,123 \n \nLiabilities \nAccounts payable and other Due to brokers for securities purchased Insurance premiums payable Due to participating systems \n \nTotal liabilities \n \nNet position restricted for pensions \n \nand OPEB \n \n$ \n \n23,787 -- \n699 -- \n24,486 \n15,651,637 \n \nPooled Investment \nFund \n147,489 \n \nDefined Contribution Plans \n \nGeorgia Defined Contribution \nPlan \n16,781 \n \n401(k) Plan \n28 \n \n457 Plan \n17 \n \n-- 45,807 \n795 -- -- \n \n941 \n \n1,938 \n \n325 \n \n335 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n4 \n \n687 \n \n411 \n \n-- \n \n-- \n \n-- \n \n46,602 \n \n1,280 \n \n2,625 \n \n736 \n \n1,870,707 -- \n2,337,433 \n77,112 173,609 \n8,161,676 2,753,458 \n51,767 \n-- -- \n15,425,762  \n15,619,853 \n \n29,585 10,005 44,978 \n-- -- \n-- -- -- \n-- -- \n84,568  \n102,629 \n \n   \n  \n  -- \n626,566  \n626,566  \n629,219 \n \n   \n  \n   \n577,826  \n577,826  \n578,579 \n \n1,800 7,523 \n-- 15,610,530 \n15,619,853 \n \n \n478 -- -- -- \n478 \n102,151 \n \n2,758    \n2,758 \n626,461 \n \n905    \n905 \n577,674 \n \nEliminations  \n    (699) (699) \n   \n  \n   \n (15,610,530) (15,610,530) \n (15,611,229) \n  (699) (15,610,530) (15,611,229) \n \n \nTotal \n2015 190,298 \n \n2014 304,344 \n \n33,716 46,142 \n795 2,651 \n-- \n83,304 \n \n27,784 43,192 \n7,160 1,936 \n-- \n80,072 \n \n1,900,292 10,005 \n2,382,411 \n77,112 173,609 \n8,161,676 2,753,458 \n51,767 \n1,204,392 -- \n16,714,722 6,850 \n16,995,174 \n \n1,573,719 10,028 \n2,374,957 \n78,652 276,764 \n8,372,234 2,999,387 \n21,914 \n1,209,580 -- \n16,917,235 6,797 \n17,308,448 \n \n29,728 7,523 -- -- \n37,251 \n16,957,923 \n \n30,045 11,711 \n-- -- \n41,756 \n17,266,692 \n \nSee accompanying notes to financial statements. \n \n Financial \nDefined Benefit Plans  Combining Statement of Fiduciary Net Position \nJune 30, 2015 (In thousands) \n20 \n \nAssets \nCash and cash equivalents \nReceivables: Contributions Interest and dividends Due from brokers for securities sold Other Unremitted insurance premiums \nTotal receivables \nInvestments - at fair value: Domestic obligations: U.S. Treasuries U.S. Agencies Corporate and other bonds International obligations: Governments Corporates Equities: Domestic International Private equity Mutual funds, common collective trust funds, and separate accounts Equity in pooled investment fund \nTotal investments Capital assets, net \nTotal assets \nLiabilities \nAccounts payable and other Due to brokers for securities purchased Insurance premiums payable Due to participating systems \nTotal liabilities \nNet position restricted for pensions and OPEB \nSee accompanying notes to financial statements. \n \nEmployees' Retirement \nSystem \n \n$ \n \n24,918 \n \nPublic School Employees Retirement \nSystem \n101 \n \nDefined Benefit Pension Plans \n \nLegislative Retirement \nSystem \n94 \n \nGeorgia Judicial Retirement System \n529 \n \nGeorgia Military Pension \nFund \n84 \n \nSuperior Court Judges \nRetirement Fund \n26 \n \nDistrict Attorneys Retirement \nFund \n3 \n \nDefined Benefit OPEB Plans \n \nState Employees' Assurance Department \nActive \n58 \n \nState Employees' Assurance Department \nOPEB \n75 \n \nSurvivors Benefit Fund \n95 \n \nDefined Benefit Plans Total \n25,983 \n \n29,908 \n \n-- \n \n27 \n \n577 \n \n \n \n \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n1,510 \n \n38 \n \n1 \n \n-- \n \n \n \n \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n31,418 \n \n38 \n \n28 \n \n577 \n \n \n \n \n \n \n \n \n \n-- \n \n \n \n-- \n \n \n \n-- \n \n \n \n-- \n \n83 \n \n616 \n \n83 \n \n616 \n \n-- \n \n30,512 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n1,549 \n \n-- \n \n699 \n \n-- \n \n32,760 \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n-- \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n-- \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n-- \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n-- \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n-- \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n-- \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n-- \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n-- \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n-- \n \n \n \n-- \n \n-- \n \n12,926,975 \n \n824,101 \n \n32,311 \n \n404,378 \n \n16,669 \n \n \n \n \n \n240,579 \n \n1,046,257 \n \n119,260 \n \n15,610,530 \n \n12,926,975 \n \n824,101 \n \n32,311 \n \n404,378 \n \n16,669 \n \n \n \n \n \n240,579 \n \n1,046,257 \n \n119,260 \n \n15,610,530 \n \n6,850 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n-- \n \n6,850 \n \n12,990,161 \n \n824,240 \n \n32,433 \n \n405,484 \n \n16,753 \n \n26 \n \n3 \n \n240,720 \n \n1,046,948 \n \n119,355 \n \n15,676,123 \n \n21,514 \n \n1,090 \n \n72 \n \n618 \n \n41 \n \n19 \n \n1 \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n683 \n \n-- \n \n2 \n \n14 \n \n \n \n \n \n \n \n-- \n \n-- \n \n-- \n \n-- \n \n \n \n \n \n \n \n22,197 \n \n1,090 \n \n74 \n \n632 \n \n41 \n \n19 \n \n1 \n \n43 \n \n389 \n \n \n \n \n \n \n \n \n \n \n \n \n \n43 \n \n389 \n \n-- \n \n23,787 \n \n-- \n \n-- \n \n-- \n \n699 \n \n-- \n \n-- \n \n-- \n \n24,486 \n \n$ 12,967,964 \n \n823,150 \n \n32,359 \n \n404,852 \n \n16,712 \n \n7 \n \n2 \n \n240,677 \n \n1,046,559 \n \n119,355 \n \n15,651,637 \n \n Financial \nCombining Statement of Changes in Fiduciary Net Position \nYear ended June 30, 2015 (with comparative totals for the year ended June 30, 2014) (In thousands) \n21 \n \nAdditions: Contributions: Employer Nonemployer Member Participant fees Insurance premiums Administrative expense allotment \nInvestment income: Net increase (decrease) in fair value of investments Interest and dividends Other Less investment expenses Allocation of investment income Net investment income \nTotal additions \nDeductions: Benefit payments Refunds of member contributions and interest Death benefits Administrative expenses Total deductions \nNet increase (decrease) in net position \nNet position restricted for pensions and OPEB: \nBeginning of year \nEnd of year \nSee accompanying notes to financial statements. \n \nDefined Benefit Plans \n \nPooled Investment \nFund \n \nDefined Contribution Plans \n \nGeorgia \n \nDefined \n \nContribution \n \n401(k) \n \n457 \n \nPlan \n \nPlan \n \nPlan \n \nTotal \n \n2015 \n \n2014 \n \n$ \n \n511,638 \n \n42,520 \n \n40,901 \n \n-- \n \n4,768 \n \n14 \n \n-- -- -- (9,985) 581,629 \n571,644 \n1,171,485 \n \n1,413,644 8,704 \n36,908 11,005 \n1,470,261 \n(298,776) \n \n15,950,413 $ 15,651,637 \n \n \n \n \n \n25,615 \n \n \n \n \n \n \n \n-- \n \n \n \n \n \n15,655 \n \n64,870 \n \n17,445 \n \n \n \n \n \n1,298 \n \n \n \n \n \n \n \n-- \n \n \n \n \n \n \n \n-- \n \n \n \n537,253 42,520 \n138,871 1,298 4,768 14 \n \n239,795 349,403 \n-- (7,569) (581,629) \n \n \n \n(31) 1,410 \n (53)  \n1,326 \n16,981 \n \n19,326 -- 547 \n(2,208) -- \n17,665 \n109,448 \n \n19,050  \n766 (825) \n \n18,991 \n36,436 \n \n278,140 350,813 \n1,313 (20,640) \n \n609,626 \n1,334,350 \n \n \n \n \n \n95,428 \n \n50,479 \n \n1,559,551 \n \n \n \n22,340 \n \n-- \n \n \n \n31,044 \n \n \n \n \n \n-- \n \n \n \n36,908 \n \n \n \n990 \n \n2,755 \n \n866 \n \n15,616 \n \n \n \n23,330 \n \n98,183 \n \n51,345 \n \n1,643,119 \n \n \n \n(6,349) \n \n11,265 \n \n(14,909) \n \n(308,769) \n \n \n \n108,500 \n \n615,196 \n \n592,583 \n \n17,266,692 \n \n \n \n102,151 \n \n626,461 \n \n577,674 \n \n16,957,923 \n \n445,214 39,107 \n126,732 1,122 5,109 7 \n2,257,437 334,052 1,271 (19,371) -- \n2,573,389 3,190,680 \n1,472,803 27,044 33,946 14,476 \n1,548,269 1,642,411 \n15,624,281 17,266,692 \n \n Financial \nDefined Benefit Plans  Combining Statement of Changes in Fiduciary Net Position \nYear ended June 30, 2015 (In thousands) \n22 \n \nAdditions: Contributions: Employer Nonemployer Member Participant fees Insurance premiums Administrative expense allotment \nInvestment income : Net increase (decrease) in fair value of investments Interest and dividends Other Less investment expenses Allocation of investment income Net investment income \nTotal additions \nDeductions: Benefit payments Refunds of member contributions and interest Death benefits Administrative expenses \nTotal deductions \nTransfers to (from) other plans \nNet increase (decrease) in net position \nNet position restricted for pensions and OPEB: \nBeginning of year \nEnd of year \n \nEmployees' Retirement \nSystem \n \nDefined Benefit Pension Plans \n \nPublic School Employees Retirement \nSystem \n \nLegislative Retirement \nSystem \n \nGeorgia Judicial Retirement System \n \nGeorgia Military Pension \nFund \n \nSuperior Court Judges \nRetirement Fund \n \nDistrict Attorneys Retirement \nFund \n \nDefined Benefit OPEB Plans \n \nState Employees' Assurance Department \nActive \n \nState Employees' Assurance Department \nOPEB \n \nSurvivors Benefit Fund \n \nDefined Benefit Plans Total \n \n$ \n \n505,668 \n \n12,495 \n \n33,713 \n \n-- \n \n-- \n \n10 \n \n-- -- -- (8,934) 483,081 \n474,147 \n1,026,033 \n \n 28,461 \n1,800    \n   (328) 30,457 \n30,129 \n60,390 \n \n  327    \n   (13) 1,202 \n1,189 \n1,516 \n \n2,696 1,564 5,061 \n   \n   (159) 14,856 \n14,697 \n24,018 \n \n1,893      \n   (5) 590 \n585 \n2,478 \n \n1,312 -- -- -- -- 3 \n-- -- -- -- -- \n \n1,315 \n \n69 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n581 \n \n4,187 \n \n1 \n \n \n \n \n \n-- \n \n511,638 \n \n-- \n \n42,520 \n \n-- \n \n40,901 \n \n-- \n \n \n \n-- \n \n4,768 \n \n-- \n \n14 \n \n \n \n \n \n \n \n-- \n \n \n \n \n \n \n \n \n \n-- \n \n \n \n \n \n \n \n \n \n-- \n \n \n \n \n \n(55) \n \n(491) \n \n-- \n \n(9,985) \n \n \n \n8,769 \n \n38,367 \n \n4,307 \n \n581,629 \n \n \n \n8,714 \n \n37,876 \n \n4,307 \n \n571,644 \n \n70 \n \n9,295 \n \n42,063 \n \n4,307 \n \n1,171,485 \n \n1,334,278 7,450 -- 7,872 \n1,349,600 \n \n(323,567) \n \n56,972 456  \n1,545 \n58,973 \n \n1,417 \n \n1,756 26  \n169 \n1,951 \n \n(435) \n \n18,365 772  819 \n19,956 \n \n4,062 \n \n896   \n121 \n1,017 \n \n1,461 \n \n1,308 -- -- 3 \n1,311 \n \n4 \n \n69 \n \n \n \n \n \n \n \n \n \n \n \n \n \n3,929 \n \n32,979 \n \n1 \n \n47 \n \n428 \n \n70 \n \n3,976 \n \n33,407 \n \n-- \n \n1,413,644 \n \n-- \n \n8,704 \n \n-- \n \n36,908 \n \n-- \n \n11,005 \n \n-- \n \n1,470,261 \n \n \n \n \n \n2 \n \n(2) \n \n \n \n \n \n5,319 \n \n8,658 \n \n4,305 \n \n(298,776) \n \n13,291,531 \n \n821,733 \n \n32,794 \n \n400,790 \n \n15,251 \n \n3 \n \n2 \n \n235,358 \n \n1,037,901 \n \n115,050 \n \n15,950,413 \n \n$ 12,967,964 \n \n823,150 \n \n32,359 \n \n404,852 \n \n16,712 \n \n7 \n \n2 \n \n240,677 \n \n1,046,559 \n \n119,355 \n \n15,651,637 \n \nSee accompanying notes to financial statements. \n \n Financial \nNotes to Financial Statements \nJune 30, 2015 \n \n(1) General \nThe accompanying basic financial statements of the Employees' Retirement System of Georgia, including all plans and funds administered by the Employees' Retirement System of Georgia (collectively, the System), is comprised of the Employees' Retirement System of Georgia (ERS), Public School Employees Retirement System (PSERS), Legislative Retirement System (LRS), Georgia Judicial Retirement System (GJRS), Georgia Military Pension Fund (GMPF), State Employees' Assurance Department Active Members Trust Fund (SEAD-Active), State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEAD-OPEB), Survivors Benefit Fund, Superior Court Judges Retirement Fund (SCJRF), District Attorneys Retirement Fund (DARF), Georgia Defined Contribution Plan (GDCP), State of Georgia Employee's Deferred Compensation Plan (401(k) Plan), and the State of Georgia Employees'Deferred Compensation Plan (457 Plan). All significant accounts and transactions among the various systems, departments, and funds have been eliminated. The Boards of Trustees, comprised of active and retired members, exofficio state employees, and appointees by the Governor, are ultimately responsible for the administration of the System. \n \n(2) Authorizing Legislation and Plan Descriptions \n \nEach plan and fund, including benefit and contribution provisions, was established and can be amended by state law.The following summarizes authorizing legislation and the plan description of each retirement fund: \n(a) ERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees and has the powers and privileges of a corporation. There were 423 employers and 1 nonemployer contributing entity participating in the plan during 2015. \n \nMembership As of June 30, 2015, participation in ERS is as follows: \nInactive members and beneficiaries currently receiving benefits Inactive members entitled to benefits but not yet receiving benefits Active plan members \nTotal \n \n47,180 84,791 60,419 \n192,390 \n \nBenefits The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the Old Plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are New Plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \nUnder the Old Plan, the New Plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or after 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months of earnings, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \nContributions and Vesting Member contributions under the Old Plan are 4% of annual compensation, up to $4,200, plus 6% of annual compensation in excess of $4,200. Under the Old Plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the Old Plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the New Plan and GSEPS are 1.25% of annual compensation. The state is required to contribute at a specified percentage of active member payrolls, determined annually by actuarial valuation. The state contributions are not at any time refundable to the member or his/her beneficiary. \nPursuant to The Official Code of Georgia Annotated (O.C.G.A.) 47-2-292, the employer contributions for local tax commissioners are funded by the State of Georgia on behalf of the local county employer and pursuant to O.C.G.A. 47-2-290, the employer contributions for certain State Court employees are funded by the state on behalf of the local county employer. \n(continued) 23 \n \n Financial \n \nNotes to Financial Statements \n \nEmployer and nonemployer contributions as a percentage of covered payroll required for fiscal year 2015 were based on the June 30, 2012 actuarial valuation for the Old Plan, New Plan, and GSEPS as follows: \n \nEmployer and nonemployer: Normal Employer paid for member Accrued liability \nTotal \n \nOld Plan \n1.39 % 4.75 15.82 21.96 % \n \nNew Plan \n6.14 %  \n15.82 21.96 % \n \nGSEPS \n3.05 % -- \n15.82 18.87 % \n \nMembers become vested after ten years of membership service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \n \n(b) PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. There were 183 employers and 1 nonemployer contributing entity participating in the plan during 2015. \n \nMembership As of June 30, 2015, participation in PSERS is as follows: \nInactive members and beneficiaries currently receiving benefits Inactive members entitled to benefits but not yet receiving benefits Active plan members \nTotal \n \n16,994 79,468 35,488 \n131,950 \n \nBenefits A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \nUpon retirement, the member will receive a monthly benefit of $14.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. \nContributions and Vesting Individuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year.The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. \nEmployer contributions required for the year ended June 30, 2015 were $736.31 per active member and were based on the June 30, 2012 actuarial valuation. \nMembers become vested after ten years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \n \n(c) LRS is a single-employer defined benefit pension plan established by the Georgia General Assembly from 1967-1971, and later reestablished in 1979, for the purpose of providing retirement allowances for all members of the Georgia General Assembly. LRS is administered by the ERS Board of Trustees. There was one employer in the plan for 2015. \n \nMembership As of June 30, 2015, participation in LRS is as follows: \nInactive members and beneficiaries currently receiving benefits Inactive members entitled to benefits but not yet receiving benefits Active plan members \nTotal \n24 \n \n260 158 219 \n637 \n(continued) \n \n Financial \nNotes to Financial Statements \nBenefits A member's normal retirement is after eight years of creditable service and attainment of age 65, or eight years of membership service (four legislative terms) and attainment of age 62. A member may retire early and elect to receive a monthly retirement benefit after completion of eight years of membership service and attainment of age 60; however, the retirement benefit is reduced by 5% for each year the member is under age 62. \nUpon retirement, the member will receive a monthly service retirement allowance of $36, multiplied by the number of years of creditable service, reduced by age reduction factors, if applicable. Death benefits are also available through the plan. \nContributions and Vesting Member contributions are 8.5% of annual salary. The state pays member contributions in excess of 4.75% of annual compensation. Employer contributions are actuarially determined and approved and certified by the ERS Board of Trustees. \nThere were no employer contributions required for the year ended June 30, 2015 based on the June 30, 2012 actuarial valuation. \nMembers become vested after eight years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. \nHowever, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \n \n(d) GJRS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1998 for the purpose of providing retirement allowances for judges and solicitors general of the state courts and juvenile court judges in Georgia, and their survivors and other beneficiaries, superior court judges of the State of Georgia, and district attorneys of the State of Georgia. \n \nThe GJRS was also created to serve the members and beneficiaries of the Trial Judges and Solicitors Retirement Fund, the Superior Court Judges Retirement System, and the District Attorneys Retirement System (collectively, the Predecessor Retirement Systems). As of June 30, 1998, any person who was an active, inactive, or retired member or beneficiary of the Predecessor Retirement Systems was transferred to GJRS in the same status effective July 1, 1998. All assets of the Predecessor Retirement Systems were transferred to GJRS as of July 1, 1998. The ERS Board of Trustees and three additional trustees administer GJRS. There were 91 employers and 1 nonemployer contributing entity participating in the plan during 2015. \n \nMembership As of June 30, 2015, participation in GJRS is as follows: \n \nInactive members and beneficiaries currently receiving benefits \n \n290 \n \nInactive members entitled to benefits but not yet receiving benefits \n \n63 \n \nActive plan members \n \n516 \n \nTotal \n \n869 \n \nBenefits The normal retirement for GJRS is age 60, with 16 years of creditable service; however, a member may retire at age 60 with a minimum of 10 years of creditable service. \nAnnual retirement benefits paid to members are computed as 662/3% of state-paid salary at retirement for district attorneys and superior court judges and 662/3% of the average over 24 consecutive months for trial judges and solicitors, plus 1% for each year of credited service over 16 years, not to exceed 24 years. Early retirement benefits paid to members are computed as the pro rata portion of the normal retirement benefit, based on service not to exceed 16 years. Death, disability, and spousal benefits are also available. \nContributions and Vesting Members are required to contribute 7.5% of their annual salary. Those who became members prior to July 1, 2012 must also contribute an additional 2.5% of their annual salary if the spousal benefit is elected. Employer contributions are actuarially determined and approved and certified by the GJRS Board of Trustees. \nPursuant to O.C.G.A. 47-23-81, the employer contributions for state court judges and solicitors are funded by the State of Georgia on behalf of the local county employers and pursuant to O.C.G.A. 47-23-82, the employer contributions for juvenile court judges are funded by the state on behalf of local county employers. \n \n(continued) 25 \n \n Financial \nNotes to Financial Statements \nEmployer and nonemployer contributions required for fiscal year 2015 were based on the June 30, 2012 actuarial valuation as follows: \n \nEmployer and nonemployer: Normal Accrued liability \nTotal \n \n13.12 % (6.14) \n6.98 % \n \nMembers become vested after ten years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \n \n(e) The GMPF is a single-employer defined benefit pension plan established on July 1, 2002 by the Georgia General Assembly for the purpose of providing retirement allowances and other benefits for members of the Georgia National Guard (National Guard). The ERS Board of Trustees administers the GMPF. \nMembership As of June 30, 2015, GMPF had 844 retirees and beneficiaries currently receiving benefits. Active and inactive plan member information is maintained by one employer, the Georgia Department of Defense. \nBenefits A member becomes eligible for benefits upon attainment of age 60, with 20 or more years of creditable service (including at least 15 years of service as a member of the National Guard), having served at least 10 consecutive years as a member of the National Guard immediately prior to discharge, and having received an honorable discharge from the National Guard. \nThe retirement allowance is payable for life in the amount of $50 per month, plus $5 per month for each year of creditable service in excess of 20 years. The maximum benefit is $100 per month. \nContributions and Vesting Employer contributions are actuarially determined and approved and certified by the ERS Board of Trustees. There are no member contributions required. \nEmployer contributions required for the year ended June 30, 2015 were $139.98 per active member and were based on the June 30, 2012 actuarial valuation. \nA member becomes vested after 20 years of creditable service (including at least 15 years of service as a member of the National Guard), having served at least 10 consecutive years as a member of the National Guard immediately prior to discharge, and having received an honorable discharge from the National Guard. \n \n(f) SEAD-Active is a cost-sharing multiple-employer defined other post employment benefit plan created in 2007 by the Georgia General Assembly to amend Title 47 of the Official Code of Georgia Annotated, relating to retirement, so as to establish a fund for the provision of term life insurance to active members of ERS, LRS, and GJRS. Effective July 1, 2009, no newly hired members of any Georgia public retirement system are eligible for term life insurance under SEAD. The SEAD-Active trust fund accumulates in the fund the premiums received from the aforementioned retirement systems, including interest earned on deposits and investments of such payments from active members. There were 481 employers participating in the plan during 2015. \n \nAs of June 30, 2015, participation in SEAD-Active is as follows: \nRetirees and beneficiaries Terminated employees Active plan members \nTotal \n \n  35,142 \n35,142 \n \nEmployee contribution rates of 0.05% or 0.02% of member's salaries were appropriated for the fiscal year ending June 30, 2015 as follows: ERS Old Plan  0.05% and ERS New Plan, LRS and GJRS  0.02%. ERS Old Plan members were hired prior to July 1, 1982 and New Plan members were hired on or after July 1, 1982, but prior to January 1, 2009. \n \nGeorgia law provides that employee contributions to the plan shall be in an amount established by the board of trustees not to exceed one half of 1% of the member's earnable compensation. There were no employer contributions required for the fiscal year ended June 30, 2015. \n \nAccording to the policy terms covering the lives of members, insurance coverage is provided on a monthly, renewable term basis, and no return premiums or cash \n \nvalue are earned. The net position represents the excess accumulation of investment income and premiums over benefit payments and expenses and is held as \n \n26 \n \n(continued) \n \n Financial \nNotes to Financial Statements \na reserve for payment of death benefits under existing policies. \nThe amount of insurance coverage is equal to 18 times monthly earnable compensation frozen at age 60. For members with no creditable service prior to April 1, 1964, the amount decreases from age 60 by one-half of 1% per month until age 65, at which point the member will be covered for 70% of the age 60 coverage. Life insurance proceeds are paid in a lump sum to the beneficiary upon death of the member. \nAdministrative costs for the plan are determined based on the plan's share of overhead costs to accumulate and invest funds, actuarial services, and to process benefit payments to beneficiaries. Administrative fees are financed from the assets of the plan. \n \n(g) SEAD-OPEB is a cost-sharing multiple-employer defined other post employment benefit plan created in 2007 by the Georgia General Assembly to amend Title 47 of the Official Code of Georgia Annotated, relating to retirement, so as to establish a fund for the provision of term life insurance to retired and vested inactive members of ERS, LRS, and GJRS. Effective July 1, 2009, no newly hired members of any Georgia public retirement system are eligible for term life insurance under SEAD. The SEAD-OPEB trust fund accumulates in the fund the premiums received from the aforementioned retirement systems, including interest earned on deposits and investments of such payments from retired and vested inactive members. There were 481 employers participating in the plan during 2015. \n \nAs of June 30, 2015, participation in SEAD-OPEB is as follows: \nRetirees and beneficiaries Terminated employees Active plan members \nTotal \n \n39,794 1,063 \n35,142 \n75,999 \n \nEmployee contribution rates of 0.45% or 0.23% of member's salaries were appropriated for the fiscal year ending June 30, 2015 as follows: ERS Old Plan 0.45% and ERS New Plan, LRS and GJRS  0.23%. ERS Old Plan members were hired prior to July 1, 1982 and New Plan members were hired on or after July 1, 1982, but prior to January 1, 2009. \nGeorgia law provides that employee contributions to the plan shall be in an amount established by the board of trustees not to exceed one-half of 1% of the member's earnable compensation. There were no employer contributions required for the fiscal year ended June 30, 2015. \nAccording to the policy terms covering the lives of members, insurance coverage is provided on a monthly, renewable term basis, and no return premiums or cash value are earned. The net position represents the excess accumulation of investment income and premiums over benefit payments and expenses and are held as a reserve for payment of death benefits under existing policies. \nThe amount of insurance for a retiree with creditable service prior to April 1, 1964 is the full amount of insurance under SEAD-Active in effect on the date of retirement. The amount of insurance for a service retiree with no creditable service prior to April 1, 1964 is 70% of the amount of insurance under SEAD-Active at age 60 or at termination, if earlier. Life insurance proceeds are paid in a lump sum to the beneficiary upon death of the retiree. \nAdministrative costs for the plan are determined based on the plan's share of overhead costs to accumulate and invest funds, actuarial services, and to process benefit payments to beneficiaries. Administrative fees are financed from the assets of the plan. \n \n(h) Survivors Benefit Fund (SBF) was established under O.C.G.A. 47-2-128(c)(3) within the ERS trust solely for maintaining group term life insurance coverage for members of the plan. All assets of SBF are therefore limited to the payment of benefits and expenses for such coverage and cannot be used to pay pension benefits of ERS. SBF is shown on the financial statements separately with the OPEB plans to closely align with their ultimate purpose. While shown with the OPEB plans for reporting purposes, SBF may only be used to pay benefits or expenses of SEAD-OPEB or SEAD-Active with authorization by the ERS Board of Trustees. There are no liabilities associated with this fund and an actuarial valuation is not prepared, as there are no funding requirements. \n \n(i) SCJRF is a single-employer defined benefit pension plan established by the Georgia General Assembly in 1945 for the purpose of providing retirement benefits to the superior court judges of the State of Georgia. SCJRF is directed by its own Board of Trustees. The Boards of Trustees for ERS and SCJRF entered into a contract for ERS to administer the plan effective July 1, 1995. \n \nMembership As of June 30, 2015, SCJRF had 17 retirees and beneficiaries currently receiving benefits and no active members. No new members are allowed into SCJRF. \n \nBenefits \n \nThe normal retirement for SCJRF is age 68, with 19 years of creditable service, with a benefit of two-thirds the salary paid to superior court judges. A member \n \nmay also retire at age 65, with a minimum of 10 years of creditable service, with a benefit of one-half the salary paid to superior court judges. Death, disability, \n \n27 \n \n(continued) \n \n Financial \nNotes to Financial Statements \nand spousal benefits are also available. \nContributions and Vesting Employer contributions are not actuarially determined, but are provided on an as-needed basis to fund current benefits. \n(j) DARF is a multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1949 for the purpose of providing retirement benefits to the district attorneys of the State of Georgia. DARF is directed by its own Board of Trustees. The Boards of Trustees for ERS and DARF entered into a contract for ERS to administer the plan effective July 1, 1995. \nMembership As of June 30, 2015, DARF had 5 retirees and beneficiaries currently receiving benefits and no active members. No new members are allowed into DARF. \nBenefits Persons appointed as district attorney emeritus shall receive an annual benefit of $15,000, or one-half of the state salary received by such person as a district attorney for the calendar year immediately prior to the person's retirement, whichever is greater. \nContributions and Vesting Employer contributions are not actuarially determined, but are provided on an as-needed basis to fund current benefits. \n(k) GDCP is a defined contribution plan established by the Georgia General Assembly in July 1992 for the purpose of providing retirement allowances for state employees who are not members of a public retirement or pension system and do not participate in Social Security. GDCP is administered by the ERS Board of Trustees. There were 58 employers participating in the plan during 2015. There were 138,126 members as of June 30, 2015. \nBenefits A member may retire and elect to receive periodic payments after attainment of age 65. The payments will be based upon mortality tables and interest assumptions adopted by the ERS Board of Trustees. If a terminated member has less than $5,000 credited to his/her account, the ERS Board of Trustees has the option of requiring a lump-sum distribution to the member. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary. \nContributions Members are required to contribute 7.5% of their annual salary. There are no employer contributions. Earnings will be credited to each member's account as adopted by the ERS Board of Trustees. Upon termination of employment, the amount of the member's account is refundable upon request by the member. \n(l) The 401(k) Plan was established by the State of Georgia Employee Benefit Plan Council (the Council) in accordance with Georgia Law 1985, as amended, Official Code of Georgia, Sections 45-18-50 through 45-18-58, and Section 401(k) of the Internal Revenue Code (IRC). On October 1, 1994, activity commenced when the 401(k) Plan became available to employees of the State of Georgia Community Service Boards (CSBs). On December 1, 1998, the 401(k) Plan became available to employees of the Georgia Lottery Corporation (GLC). On July 1, 2005, the Plan became available to employees of Fayette County Board of Education; on July 1, 2006, the Plan became available to employees of Walton County Board of Education; and on January 1, 2010, the Plan became available to employees of Henry County Board of Education. \nEffective July 1, 1998, the State of Georgia Employee's Deferred Compensation Group Trust (Master Trust) was formed for the State of Georgia Deferred Compensation Program to serve as the funding medium for the 401(k) Plan. At that time, the 401(k) Plan began operating on an employee elective deferral basis for all state employees working at least 1,000 hours in a 12-month period. All assets of the 401(k) Plan are held in trust for the exclusive benefit of the participants and their beneficiaries. The assets of the 401(k) Plan and the 457 Plan are commingled in the Master Trust with the respective trusts owning units of the Master Trust. Participant contributions are invested according to the participant's investment election. If the participant does not make an election, investments are automatically defaulted to a Lifecycle Fund based on the participant's date of birth. \nEffective July 1, 2005 (HB275), ERS became the trustee of the 401(k) Plan. Aon Hewitt and JPMorgan Chase hold, administer, and invest the assets of the Master Trust. \nContributions and Vesting Participating CSBs, the GLC, and Walton and Henry County Boards of Education offer employer contributions--some matching, some automatic, and some a combination of both--to eligible employees at various rates (limited to a maximum of $260,000 base salary for calendar year 2014 and $265,000 base salary for calendar year 2015). As of January 1, 2009 individual participants may defer up to 80% of eligible compensation, or up to limits prescribed by the IRC (whichever is less). \n(continued) 28 \n \n Financial \n \nNotes to Financial Statements \n \nEffective January 1, 2009, in accordance with O.C.G.A. 47-2-350 through 47-2-360, newly hired state employees, as well as rehired state employees who did not maintain eligibility for the ERS Old Plan or New Plan, are members of GSEPS. From January 1, 2009 to June 30, 2014, the GSEPS tier included automatic enrollment in the 401(k) Plan at a contribution rate of 1% of salary. Effective July 1, 2014, in accordance with HB764, the employee contribution rate for automatic enrollment increased from 1% to 5%. The state matches 100% of the employee's initial 1% contribution and 50% of contribution percentages 2 through 5. Therefore, the state will match 3% of salary when an employee contributes at least 5% to the 401(k) Plan. Employee contributions greater than 5% of salary do not receive any matching funds. Plan participants who are not employees of the GLC, a CSB, Walton and Henry County Boards of Education, or who are not GSEPS eligible, do not receive any employer contributions in their 401(k) Plan. \n \nAll employer contributions are subject to a vesting schedule, which determines eligibility to receive all or a portion of the employer contribution balance at the time of any distribution from the account after separation from all state service. Vesting is determined based on the following schedule: \n \nLess than 1 year 1 2 3 4 5 or more years \n \n--% 20 40 60 80 100 \n \nFor CSB/GLC participants whose services terminated prior to January 1, 2010 but after December 31, 2001, the following vesting schedule applies: \n \nLess than 2 years 2 3 4 5 6 or more years \n \n--% 20 40 60 80 100 \n \nFor CSB/GLC participants whose services terminated prior to January 1, 2002, the following vesting schedule applies: \n \nLess than 3 years 3 4 5 6 7 or more years \n \n--% 20 40 60 80 100 \n \nEmployee contributions and earnings thereon are 100% vested at all times. The 401(k) Plan also allows participants to roll over amounts from other qualified plans to their respective account in the 401(k) Plan on approval by the 401(k) Plan Administrator. Such rollovers are 100% vested at the time of transfer. \nDistributions The participant may receive the value of his or her vested accounts upon attaining age 59.5, qualifying financial hardship, or 30 days after retirement or other termination of service (employer contribution balances are only eligible for distribution upon separation from service). Upon the death of a participant, his or her beneficiary shall be entitled to the vested value of his or her accounts. Employees who die while actively employed and eligible for 401(k) Plan employer matching contributions become fully vested in employer contributions upon death. Distributions are made in installments or in a lump sum. \n \n(m) The 457 Plan was established by the State Personnel Board in accordance with Georgia laws 1974, page 198 as amended, Official Code of Georgia, Sections 45-18-30 through 45-18-36, and Section 457 of the Internal Revenue Code (IRC). The 457 Plan is available to employees of the State of Georgia and county health departments and permits such employees to defer a portion of their annual salary until future years. Employee contributions and earnings thereon are 100% vested at all times. \nEffective July 1, 1998, the Master Trust was formed for the State of Georgia Deferred Compensation Program to serve as the funding medium for the 457 Plan. All assets of the 457 Plan are held in trust for the exclusive benefit of the participants and their beneficiaries. The assets of the 457 Plan and the 401(k) Plan are commingled in the Master Trust with the respective trusts owning units of the Master Trust. Participant contributions are invested according to the participant's investment election. If the participant does not make an election, investments are automatically defaulted to a Lifecycle Fund based on the participant's date of birth. \n \n(continued) 29 \n \n Financial \nNotes to Financial Statements \nEffective July 1, 2005 (HB275), ERS became the trustee of the 457 Plan. Aon Hewitt and JPMorgan Chase hold, administer, and invest the assets of the Master Trust. \nDistributions The balance in the employee's account in the 457 Plan is not available to the employee until age 70.5, termination, retirement, death, or unforeseeable emergency as defined in the 457 Plan. Upon the death of a participant, his or her beneficiary shall be entitled to the vested value of his or her accounts. Distributions are made in installments or in a lump sum. \n(3) Significant Accounting Policies and System Asset Matters \n(a) Basis of Accounting The System's basic financial statements are prepared on the accrual basis of accounting. Contributions from the employers, nonemployers, and members are recognized when due, based on statutory requirements. Retirement benefits and refund payments are recognized as deductions when due and payable. \nDuring fiscal year 2015, the System adopted the provisions of GASB Statement No. 68, Accounting and Financial Reporting for Pensions, an amendment of GASB Statement No. 27. This Statement improves accounting and financial reporting by state and local governments for pensions. There are no applicable reporting requirements for the System in fiscal year 2015. \nDuring fiscal year 2015, the System adopted the provisions of GASB Statement No. 69, Government Combinations and Disposals of Government Operations. This statement establishes accounting and financial reporting standards related to government combinations and disposals of government operations. There are no applicable reporting requirements for the System in fiscal year 2015. \nDuring fiscal year 2015, the System adopted the provisions of GASB Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees. The objective of this statement is to improve accounting and financial reporting by state and local governments that extend and receive nonexchange financial guarantees. There are no applicable reporting requirements for the System in fiscal year 2015. \nDuring fiscal year 2015, the System adopted the provisions of GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date. This statement improves accounting and financial reporting of pensions by addressing an issue in Statement No. 68, Accounting and Financial Reporting for Pensions, regarding pension contributions made to the pension plan prior to implementation of that Statement. There are no applicable reporting requirements for the System in fiscal year 2015. \n(b) Reporting Entity The System is a component unit of the State of Georgia, however, it is accountable for its own fiscal matters and presentation of its separate financial statements. The System has considered potential component units under GASB Statement No. 61, The Financial Reporting Entity's Omnibus  An Amendment of GASB Statement No. 14 and No. 34, and GASB Statement No. 39, Determining Whether Certain Organizations are Component Units, and determined there were no component units of the System. \n(c) Cash and Cash Equivalents Cash and cash equivalents, reported at cost, include cash on deposit at banks and cash on deposit with the investment custodian earning a credit to offset fees. \n(d) Investments Investments are reported at fair value. Equity securities traded on a national or international exchange are valued at the last reported sales price. Private equity fair value is measured using the valuation of the underlying companies as reported by the general partner. These investments, in the form of limited partnerships, reflect values and related performance on a quarter lag basis due to the nature of the investments and the time it takes to value them. The estimated fair value of investments without readily ascertainable market values could differ significantly if a ready market for these assets existed. For fixed income securities, values are based primarily on quoted market prices provided by independent pricing sources. Global foreign exchange holdings are translated using a third party vendor. Investment income is recognized as earned by the System. There are no investments in, loans to, or leases with parties related to the System. \nThe System utilizes various investment instruments. Investment securities, in general, are exposed to various risks, such as interest rate, credit, foreign currency, and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the financial statements. \n(continued) 30 \n \n Financial \nNotes to Financial Statements \nThe System's policy in regard to the allocation of invested assets is established on a cost basis in compliance with Georgia statute. Plan assets are managed on a total return basis with a long-term objective of achieving and maintaining a fully-funded status for the benefits provided through the pension plan. The following was the System's adopted asset allocation policy as of June 30, 2015: \n \nAsset Class \nFixed income Equities Alternative investments Cash and cash equivalents \nTotal \n \nTarget Allocation \n25%-45% 55%-75% \n0%-5%  \n100% \n \nApproximately 11.5% of the investments held in trust for pension benefits are invested in debt securities of the U.S. government and its instrumentalities, of which 11.4% are U.S. government debt securities and 0.1% are debt securities of the U.S. government instrumentalities. The System has no investments in any one organization, other than those issued by the U.S. government and its instrumentalities, that represent 5% or more of the System's net position restricted for pensions and OPEB. \nFor the year ended June 30, 2015, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was (5.32)%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. \n \n(e) Capital Assets Capital assets, including software development costs, are stated at cost less accumulated depreciation. The capitalization thresholds are $100,000 for buildings and building improvements and $5,000 for equipment and vehicles. Depreciation on capital assets is computed using the straight line method over estimated useful lives of five to forty years. Depreciation expense is included in administrative expenses. Maintenance and repairs are charged to administrative expenses when incurred. When assets are retired or otherwise disposed of, the costs and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in the combining statement of changes in fiduciary net position in the period of disposal. \n \n(f) Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of net position and changes therein. Actual results could differ from those estimates. \n \n(4) Investment Program \nThe System maintains sufficient cash to meet its immediate liquidity needs. Cash not immediately needed is invested as directed by the Board of Trustees. All investments are held by agent custodial banks in the name of the System. State statutes and the System's investment policy authorize the System to invest in a variety of short-term and long-term securities as follows: \n \n(a) Cash and Cash Equivalents Custodial credit risk is the risk that in the event a depository institution or counterparty fails, the System would not be able to recover the value of its deposits or investments. The System does not have a formal policy relating to custodial credit risk. The carrying amount of the System's deposits totaled $190,297,533 at June 30, 2015 with actual bank balances of $181,267,260. The System's bank balances of $168,564,358 are fully insured through the Federal Deposit Insurance Corporation, an independent agency of the U.S. government. The remaining bank deposits of $12,702,902 are uninsured and uncollateralized. The System's noncash investments are held in the System's name and are not exposed to custodial credit risk. \n \nShort-term securities authorized but not currently used, are as follows: \n 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. \n \n U.S. Treasury obligations. \n \n 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. \n \n31 \n \n(continued) \n \n Financial \nNotes to Financial Statements \n 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. \nInvestments in commercial paper or master notes are limited to no more than $500 million in any one name. \n(b) Investments Fixed income investments, managed by the Division of Investment Services (the Division), are authorized in the following instruments:  U.S. and foreign government obligations. At June 30, 2015, the System held U.S. Treasury bonds of $1,900,291,770 and international government bonds of $77,112,420. \n Obligations unconditionally guaranteed by agencies of the U.S. government. At June 30, 2015, the System held agency bonds of $10,005,150. \n U.S. and foreign corporate obligations. At June 30, 2015, the System held U.S. corporate bonds of $2,382,410,600 and international corporate bonds of $173,608,750. \n Private placements are authorized under the same general restrictions applicable to corporate bonds. At June 30, 2015, the System did not hold private placements. \nMortgage investments are authorized to the extent that they are secured by first mortgages on improved real property located in the State of Georgia. \nEquity securities are also authorized (in statutes) for investment as a complement to the System's fixed-income portfolio and as a long-term inflation hedge. By statute, no more than 75% of the total invested assets on a historical cost basis may be placed in equities. Equity holdings in any one corporation may not exceed 5% of the outstanding equity of the issuing corporation. The equity portfolio is managed by the Division, in conjunction with independent advisors. Buy/ sell decisions are based on securities meeting rating criteria established by the Board of Trustees, in-house research considering such matters as yield, growth, and sales statistics, and analysis of independent market research. Equity trades are approved and executed by the Division's staff. Common stocks eligible for investment are approved by the Investment Committee of the Board of Trustees before being placed on an approved list. \nEquity investments are authorized in the following instruments:  Domestic equities are those securities considered by the O.C.G.A. to be domiciled in the United States. At June 30, 2015, the System held domestic equities \nof $8,161,675,526. \n International equities, including American Depository Receipts (ADR), are not considered by the O.C.G.A. to be domiciled in the United States. At June 30, 2015, the System held international equities of $625,175,662 and ADRs of $2,128,282,706. \n Alternative investments are authorized (in statutes) to provide portfolio diversification and to enhance the risk-adjusted rate of return for the retirement fund that benefits the members of the System. By statute, the allocation to alternative investments shall not, in the aggregate, exceed 5% of the System's plan assets at any time. Further, in any calendar year, new commitments to alternative investments shall not, in the aggregate, exceed 1% of the System's plan assets until the first occurrence that 4 % of the assets have been invested, at which time there shall be no limit on the percentage of commitments that may be made in any calendar year, subject to compliance with other provisions of the statute. At June 30, 2015, the System held private equity investments of $51,766,923. \nThe State of Georgia Employee's Deferred Compensation Group Trust (Master Trust) invests in various mutual funds, common collective trust funds, and separate accounts, as selected by participants. Each participant is allowed to select and invest contributions into investment options that own one or more of 3 mutual funds, 14 common collective trust funds, and 1 separate account, as authorized by the Board of Trustees. Mutual funds, common collective trust funds, and separate accounts are reported at the fair value of participant balances. \nSubstantially all of the investments of ERS, PSERS, LRS, GJRS, GMPF, SBF, SEAD-Active, and SEAD-OPEB are pooled into one common investment fund. Units in the pooled common investment fund are allocated to the respective plans, based upon the cost of assets contributed, and additional units are allocated to the participating plans, based on the market value of the pooled common investment fund at the date of contribution. Net income of the pooled common investment fund is allocated monthly to the participating plans, based upon the number of units outstanding during the month. \n(continued) 32 \n \n Financial \nNotes to Financial Statements \nThe units and fair value of each plan's equity in the pooled common investment fund at June 30, 2015 were as follows (dollars in thousands): \n \nEmployees' Retirement System Public School Employees Retirement System Legislative Retirement System Georgia Judicial Retirement System State Employees'Assurance Department - Active State Employees'Assurance Department - OPEB Survivors Benefit Fund Georgia Military Pension Fund \n \nFair Value \n$ 12,926,975 824,101 32,311 404,378 240,579 \n1,046,257 119,260 16,669 \n$ 15,610,530 \n \nUnits \n3,252,585 207,354 8,130 101,747 60,533 263,251 30,007 4,194 \n3,927,801 \n \nCredit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations to the Employees'Retirement System. State law limits investments to investment grade securities. \nIt is the System's investment policy to require that the bond portfolio be of high quality and chosen with respect to maturity ranges, coupon levels, refunding characteristics and marketability. The System's policy is to require that new purchases of bonds be restricted to high grade bonds rated no lower than\"A\"by any nationally recognized statistical rating organization. If a bond is subsequently downgraded to a rating below \"A\", it is placed on a watch list. The System held one bond which was downgraded to a rating below\"A\"during the fiscal year ending June 30, 2015. Obligations of the U.S. government or obligations explicitly guaranteed by the U.S. government are not considered to have credit risk and do not require disclosure of credit quality. The quality ratings of investments in fixed income securities as described by Standard \u0026 Poor's and by Moody's Investors Service, which are nationally recognized statistical rating organizations, at June 30, 2015 are shown in the following chart: \n \nQuality Ratings of Fixed Income Investments Held at June 30, 2015 \n \nInvestment Type Domestic obligations: \nU.S. Treasuries U.S. Agencies Corporates \nTotal Corporates International obligations: \nGovernments Corporates \n \nStandard \u0026 Poor's/ Moody's \nQuality Rating \nAA/Aaa \nAAA/Aaa AA/Aa AA/A A/Aa A/A BBB/Baa \nA/Aa AA/Aa \n \nJune 30,2015 Fair Value \n$ 1,900,291,770 10,005,150 \n365,880,000 313,446,290 597,747,150 \n80,190,110 948,652,170 \n76,494,880 \n2,382,410,600 \n77,112,420 173,608,750 \n \nTotal Fixed Income Investments \n \n$ 4,543,428,690 \n \nMutual funds, common collective trust funds, and separate accounts investments of the deferred compensation plans are not considered to have credit risk and do not require disclosure of credit risk rating. \n \n(continued) 33 \n \n Financial \nNotes to Financial Statements \nConcentration of Credit Risk. Concentration of credit risk is the risk of loss that may be attributed to the magnitude of a government's investment in a single issue. At June 30, 2015, the System did not have debt or equity investments in any one organization, other than those issued or guaranteed by the U. S. Government or its agencies, which represented greater than 5% of plan net position. \nInterest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. While the System has no formal interest rate risk policy, active management of the bond portfolio incorporates interest rate risk to generate improved returns. This risk is managed within the portfolio using the effective duration method.This method is widely used in the management of fixed income portfolios and quantifies to a much greater degree the sensitivity to interest rate changes when analyzing a bond portfolio with call options, prepayment provisions, and any other cash flows. Effective duration makes assumptions regarding the most likely timing and amounts of variable cash flows and is best utilized to gauge the effect of a change in interest rates on the fair value of a portfolio. It is believed that the reporting of effective duration found in the table below quantifies to the fullest extent possible the interest rate risk of the System's fixed income assets. \n \nFixed Income Type \nDomestic obligations: U.S. Treasuries U.S. Agencies Corporates \nInternational obligations: Governments Corporates \nTotal \n \nEffective Duration of Fixed Income Assets \n \nFair Value June 30, 2015 \n \nPercent of All Fixed Income Assets \n \nEffective Duration (Years) \n \n$ 1,900,291,770 10,005,150 \n2,382,410,600 \n77,112,420 173,608,750 $ 4,543,428,690 \n \n41.8 % \n \n6.2 \n \n0.2 \n \n0.3 \n \n52.5 \n \n3.9 \n \n1.7 \n \n2.3 \n \n3.8 \n \n2.4 \n \n100.0 % \n \n4.8 \n \nMutual funds, common collective trust funds, and separate investments of the deferred compensation plans are not considered to have interest rate risk and do not require disclosure of interest rate risk. \n \n(continued) 34 \n \n Financial \nNotes to Financial Statements \nForeign Currency Risk. Foreign currency risk is the risk that changes in exchange rates will adversely impact the fair value of an investment. The System's currency risk exposures, or exchange rate risks, primarily reside within the System's international equity investment holdings. The System's foreign exchange risk management policy is to minimize risk and protect the investments from negative impact by hedging foreign currency exposures with foreign exchange instruments when market conditions and circumstances are deemed appropriate. As of June 30, 2015, the System's exposure to foreign currency risk in U.S. Dollars is highlighted in the following table: \n \nInternational Investment Securities at Fair Value as of June 30, 2015 \n \nCurrency \nAustralian Dollar Brazilian Real British Pound Canadian Dollar Danish Krone Euro Hong Kong Dollar Indonesian Rupiah Japanese Yen Malaysian Ringgit Mexican Peso New Taiwan Dollar Norwegian Krone Philippine Peso Polish Zloty Singapore Dollar South African Rand South Korean Won Swedish Krona Swiss Franc Thailand Baht \nTotal Holdings Subject to Foreign Currency Risk Investment Securities Payable in U.S. Dollars \nTotal International Investment Securities - at Fair Value \n \nEquities \n$ 43,905,092 22,933,815 \n108,371,525 12,929,015 9,917,072 76,233,489 65,479,876 5,455,766 59,559,248 9,407,840 7,249,077 45,010,401 2,071,297 5,307,393 4,521,457 15,096,642 29,481,033 58,782,988 22,215,773 5,052,347 16,194,516 \n625,175,662 2,128,282,706 \n$ 2,753,458,368 \n \nFixed Income \n-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- \n-- 250,721,170 \n250,721,170 \n \nTotal \n43,905,092 22,933,815 108,371,525 12,929,015 \n9,917,072 76,233,489 65,479,876 \n5,455,766 59,559,248 \n9,407,840 7,249,077 45,010,401 2,071,297 5,307,393 4,521,457 15,096,642 29,481,033 58,782,988 22,215,773 5,052,347 16,194,516 \n625,175,662 2,379,003,876 \n3,004,179,538 \n \n(5) Securities Lending Program \nState statutes and Board of Trustees policies permit the System to lend its securities to broker dealers with a simultaneous agreement to return the collateral for the same securities in the future. The System is presently involved in a securities lending program with major brokerage firms. The System lends equity and fixed income securities for varying terms and receives a fee based on the loaned securities'value. The System reports the gross loan fee income earned as investment income on the Combining Statement of Changes in Fiduciary Net Position. During a loan, the System continues to receive dividends and interest as the owner of the loaned securities. The brokerage firms pledge collateral securities consisting of U.S. government and agency securities, mortgage-backed securities issued by a U.S. government agency, corporate bonds, and equities. The collateral value must be equal to at least 102% to 109% of the loaned securities'value, depending on the type of collateral security. \nSecurities loaned totaled $4,054,032,723 at fair value at June 30, 2015. The collateral value was equal to 104.0% of the loaned securities' value at June 30, 2015. The System's lending collateral was held in the System's name by the tri-party custodian. \nLoaned securities are included in the accompanying combining statement of fiduciary net position since the System maintains ownership. The related collateral securities are not recorded as assets on the System's combining statement of fiduciary net position, and a corresponding liability is not recorded, since the System is deemed not to have the ability to pledge or trade the collateral securities. The System is deemed not to have the ability to pledge or sell the collateral securities, since the System's lending contracts do not address whether the lender can pledge or sell the collateral securities without a borrower default, the System has not previously demonstrated that ability, and there are no indications of the System's ability to pledge or sell the collateral securities. \n(continued) 35 \n \n Financial \nNotes to Financial Statements \n(6) Capital Assets \n \nThe following is a summary of capital assets and depreciation information as of and for the year ended June 30, 2015: \n \nCapital assets: Land Building Equipment Vehicles Computer software \n \nBalance at June 30, 2014 \n$ 4,072,166 2,800,000 2,482,162 13,382 \n14,344,609 \n23,712,319 \n \nAdditions \n \nDisposals \n \n248,552 \n \n \n \n \n \n \n \n156,524 \n \n \n \n \n \n \n \n \n \n \n \n405,076 \n \n \n \nAccumulated depreciation for: Building Equipment Vehicles Computer software \n \n(700,000) \n \n(70,000) \n \n \n \n(1,857,206) \n \n(282,275) \n \n \n \n(13,382) \n \n \n \n \n \n(14,344,609) \n \n \n \n \n \n(16,915,197) \n \n(352,275) \n \n \n \nCapital assets, net \n \n$ 6,797,122 \n \n52,801 \n \n \n \nBalance at June 30, 2015 \n4,320,718 2,800,000 2,638,686 \n13,382 14,344,609 24,117,395 \n(770,000) (2,139,481) \n(13,382) (14,344,609) (17,267,472) \n6,849,923 \n \nDuring fiscal year 2015, the System did not experience any capital asset impairment loss with respect to the provisions of GASB Statement No. 42, Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries. \n \n(7) Commitments \nAs of June 30, 2015, the System had committed to fund certain private equity partnerships for a total capital commitment of $190,750,000. Of this amount, $129,969,415 remained unfunded and is not recorded on the System's Combining Statement of Fiduciary Net Position. \n \n(8) Net Pension Liability of Employers and Nonemployers - ERS \n \nThe components of the net pension liability of the participating employers and nonemployers at June 30, 2015 were as follows (dollars in thousands): \n \nTotal pension liability Plan fiduciary net position \nEmployers' and nonemployers' net pension liability \nPlan fiduciary net position as a percentage of the total pension liability \n \n$ \n \n17,019,362 \n \n12,967,964 \n \n$ \n \n4,051,398 \n \n76.20% \n \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2014, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increase Investment rate of return \n \n3.0% 5.45-9.25%, including inflation 7.50%, net of pension plan investment expense, including inflation \n \nMortality rates were based on the RP-2000 Combined Mortality Table for the period after service retirement, for dependent beneficiaries, and for deaths in active service, and the RP-2000 Disabled Mortality Table set back eleven years for males for the period after disability retirement. \n \nThe actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2004  June 30, 2009. \n \n(continued) 36 \n \n Financial \nNotes to Financial Statements \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset Class \nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks \nTotal \n \nTarget Allocation \n30.00 % 39.70 \n3.70 1.60 18.90 6.10 \n100.00 % \n \nLong-term Expected Real Rate of Return* \n3.00 % 6.50 10.00 13.00 6.50 11.00 \n \n* Rates shown are net of the 3.00% assumed rate of inflation \n \nDiscount rate: The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \nSensitivity of the net pension liability to changes in the discount rate: The following presents the net pension liability, calculated using the discount rate of 7.50%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.50%) or 1 percentage point higher (8.50%) than the current rate (dollars in thousands): \n \nEmployers' and nonemployers' net pension liability \n \n1% Decrease (6.50%) \n$ 5,743,002 \n \nCurrent Discount \nRate (7.50%) \n4,051,398 \n \n1% Increase (8.50%) \n2,609,240 \n \nActuarial valuation date: June 30, 2014 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2015 using standard roll forward techniques. The roll forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n \n(9) Net Pension Liability of Employers and Nonemployers  PSERS \n \nThe components of the net pension liability of the participating employers and nonemployers at June 30, 2015 were as follows (dollars in thousands): \n \nTotal pension liability Plan fiduciary net position \nEmployers' and nonemployers' net pension liability \nPlan fiduciary net position as a percentage of the total pension liability \n \n$ \n \n946,200 \n \n823,150 \n \n$ \n \n123,050 \n \n87.00% \n \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2014, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases Investment rate of return \n \n3.0% n/a 7.50%, net of pension plan investment expense, including inflation \n \n(continued) 37 \n \n Financial \nNotes to Financial Statements \n \nMortality rates were based on the RP-2000 Combined MortalityTable set forward one year for males for the period after service retirement, for dependent beneficiaries, and for deaths in active service, and the RP-2000 Disabled Mortality Table set back two years for males and set forward one year for females for the period after disability retirement. \n \nThe actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2004  June 30, 2009. \n \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset Class \nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks \nTotal \n \nTarget Allocation \n30.00 % 39.70 \n3.70 1.60 18.90 6.10 \n100.00 % \n \nLong-term Expected Real Rate of Return* \n3.00 % 6.50 10.00 13.00 6.50 11.00 \n \n* Rates shown are net of the 3.00% assumed rate of inflation \nDiscount rate: The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \nSensitivity of the net pension liability to changes in the discount rate: The following presents the net pension liability, calculated using the discount rate of 7.50%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.50%) or 1 percentage point higher (8.50%) than the current rate (dollars in thousands): \n \nEmployers' and nonemployers' net pension liability \n \n1% Decrease (6.50%) \n \n$ \n \n226,255 \n \nCurrent Discount \nRate (7.50%) \n123,050 \n \n1% Increase (8.50%) \n36,107 \n \nActuarial valuation date: June 30, 2014 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2015 using standard roll forward techniques. The roll forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n \n(10) Net Pension Liability of Employer  LRS \n \nThe components of the net pension liability of the participating employer at June 30, 2015 were as follows (dollars in thousands): \n \nTotal pension liability Plan fiduciary net position \nEmployer's net pension liability (asset) \nPlan fiduciary net position as a percentage of the total pension liability \n \n$ \n \n25,271 \n \n32,359 \n \n$ \n \n(7,088) \n \n128.05% \n \n(continued) 38 \n \n Financial \nNotes to Financial Statements \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2014, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increases Investment rate of return \n \n3.0% None 7.50%, net of pension plan investment expense, including inflation \n \nMortality rates were based on the RP-2000 Combined Mortality Table for the period after service retirement, for dependent beneficiaries, and for deaths in active service, and the RP-2000 Disabled Mortality Table set back eleven years for males for the period after disability retirement. \n \nThe actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2004  June 30, 2009. \n \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset Class Fixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks \nTotal \n* Rates shown are net of the 3.00% assumed rate of inflation \n \nTarget Allocation \n30.00 % 39.70 \n3.70 1.60 18.90 6.10 \n100.00 % \n \nLong-term Expected Real Rate of Return* \n3.00 % 6.50 10.00 13.00 6.50 11.00 \n \nDiscount rate: The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \nSensitivity of the net pension liability to changes in the discount rate: The following presents the net pension liability, calculated using the discount rate of 7.50%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.50%) or 1 percentage point higher (8.50%) than the current rate (dollars in thousands): \n \nEmployer's net pension liability (asset) \n \n1% Decrease (6.50%) \n \n$ \n \n(4,722) \n \nCurrent Discount \nRate (7.50%) \n(7,088) \n \n1% Increase (8.50%) \n(9,053) \n \nActuarial valuation date: June 30, 2014 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2015 using standard roll forward techniques. The roll forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n \n(continued) 39 \n \n Financial \nNotes to Financial Statements \n \n(11) Net Pension Liability of Employers and Nonemployers  GJRS \n \nThe components of the net pension liability of the participating employers and nonemployers at June 30, 2015 were as follows (dollars in thousands): \n \nTotal pension liability Plan fiduciary net position \nEmployers' and nonemployers' net pension liability (asset) \nPlan fiduciary net position as a percentage of the total pension liability \n \n$ \n \n357,081 \n \n404,852 \n \n$ \n \n(47,771) \n \n113.38% \n \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2014, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increase Investment rate of return \n \n3.0% 6.00%, including inflation 7.50%, net of pension plan investment expense, including inflation \n \nMortality rates were based on the RP-2000 Combined Mortality Table for the period after service retirement, for dependent beneficiaries, and for deaths in active service, and the RP-2000 Disabled Mortality Table set back eleven years for males for the period after disability retirement. \n \nThe actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2004  June 30, 2009. \n \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset Class \nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks \nTotal \n \nTarget Allocation \n30.00 % 39.70 \n3.70 1.60 18.90 6.10 \n100.00 % \n \nLong-term Expected Real Rate of Return* \n3.00 % 6.50 10.00 13.00 6.50 11.00 \n \n* Rates shown are net of the 3.00% assumed rate of inflation \nDiscount rate: The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \nSensitivity of the net pension liability to changes in the discount rate: The following presents the net pension liability, calculated using the discount rate of 7.50%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.50%) or 1 percentage point higher (8.50%) than the current rate (dollars in thousands): \n \nEmployers' and nonemployers' net pension liability (asset) \n \n1% Decrease (6.50%) \n \n$ \n \n(12,669) \n \nCurrent Discount \nRate (7.50%) \n(47,771) \n \n1% Increase (8.50%) \n(78,291) \n \n(continued) 40 \n \n Financial \nNotes to Financial Statements \nActuarial valuation date: June 30, 2014 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2015 using standard roll forward techniques. The roll forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n \n(12) Net Pension Liability of Employer  GMPF \n \nThe components of the net pension liability of the participating employer at June 30, 2015 were as follows (dollars in thousands): \n \nTotal pension liability Plan fiduciary net position \nEmployer's net pension liability \nPlan fiduciary net position as a percentage of the total pension liability \n \n$ \n \n33,343 \n \n16,712 \n \n$ \n \n16,631 \n \n50.12% \n \nActuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2014, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nInflation Salary increase Investment rate of return \n \n3.0% n/a 7.50%, net of pension plan investment expense, including inflation \n \nMortality rates were based on the RP-2000 Combined Mortality Table for the period after service retirement, for dependent beneficiaries, and for deaths in active service. \nThe actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2004  June 30, 2009. \nThe long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset Class \nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks \nTotal \n \nTarget Allocation \n30.00 % 39.70 \n3.70 1.60 18.90 6.10 \n100.00 % \n \nLong-term Expected Real Rate of Return* \n3.00 % 6.50 10.00 13.00 6.50 11.00 \n \n* Rates shown are net of the 3.00% assumed rate of inflation \nDiscount rate: The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \n(continued) 41 \n \n Financial \nNotes to Financial Statements \nSensitivity of the net pension liability to changes in the discount rate: The following presents the net pension liability, calculated using the discount rate of 7.50%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.50%) or 1 percentage point higher (8.50%) than the current rate (dollars in thousands): \n \nEmployer's net pension liability \n \n1% Decrease (6.50%) \n \n$ \n \n21,553 \n \nCurrent Discount \nRate (7.50%) \n16,631 \n \n1% Increase (8.50%) \n12,642 \n \nActuarial valuation date: June 30, 2014 is the actuarial valuation date upon which the total pension liability is based. An expected total pension liability is determined as of June 30, 2015 using standard roll forward techniques. The roll forward calculation adds the annual normal cost (also called service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. \n(13) Funded Status and Funding Progress - Defined Benefit OPEB Plans \nThe funded status of the SEAD-Active and SEAD-OPEB plans as of June 30, 2014, the most recent actuarial valuation date, are as follows (dollar amounts in thousands): \n \nSEAD - Active SEAD - OPEB \n \nActuarial Value of Plan Assets (a) \n \n$ \n \n235,358 \n \n1,037,901 \n \nActuarial Accrued Liability (AAL) Projected Unit Credit (b) \n35,877 788,020 \n \nUnfunded AAL/ (Funded Excess) (b-a) \n(199,481) (249,881) \n \nFunded Ratio (a/b) \n656.0 % \n131.7 \n \nAnnual Covered Payroll \n(c) \n$ 1,628,712 1,628,712 \n \nUnfunded AAL/ (Funded Excess) as Percentage of Covered Payroll \n[(b-a)/c] \n(12.2) % \n(15.3) \n \nThe SBF does not have an actuarial valuation as there are no funding requirements and no liabilities related to the fund. \n \nThe schedules of funding progress, presented as required supplementary information (RSI) following the notes to the financial statements, present multi-year trend information about whether the actuarial values of plan assets are increasing or decreasing over time relative to the AALs for benefits. \nAdditional information as of the latest actuarial valuation follows: \n \nValuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method \nActuarial assumptions: Investment rate of return Projected salary increases: ERS GJRS LRS \nPost retirement cost-of-living adjustment \n \nSEAD-Active June 30, 2014 Projected Unit Credit Level dollar, closed N/A Market value of assets \n7.50% \n5.45-9.25% 6.00% -- N/A \n \nSEAD-OPEB June 30, 2014 Projected Unit Credit Level dollar, closed N/A Market value of assets \n7.50% \n5.45-9.25% 6.00% -- N/A \n \n1 Includes inflation rate of 3.00%. \n \n42 \n \n Financial \nRequired Supplementary Information (UNAUDITED) Schedules of Employers' and Nonemployers' Contributions - Defined Benefit Pension Plans \nFor year ended June 30 (In thousands) \n(continued) 43 \n \nEmployees' Retirement System1 \nPublic School Employees Retirement System2 \nLegislative Retirement System3 \n \nYear Ended \n6/30/2006 6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 \n6/30/2006 6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 \n6/30/2006 6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 \n \nActuarially Determined Contribution \n(a) \n \n$ \n \n258,482 \n \n270,141 \n \n286,256 \n \n282,103 \n \n263,064 \n \n261,132 \n \n273,623 \n \n358,376 \n \n428,982 \n \n517,220 \n \n3,638 6,490 2,869 5,529 5,530 7,509 15,884 24,829 27,160 28,461 \n \n-- -- -- -- -- -- -- -- -- -- \n \nContributions in relation to the actuarially determined contribution \n(b) \n258,482 270,141 286,256 281,206 263,064 261,132 274,034 358,992 429,752 518,163 \n3,638 6,490 2,869 5,529 5,530 7,509 15,884 24,829 27,160 28,461 \n54 62 73 71 75 75 76 128 45 -- \n \nContribution deficiency (excess) \n(a-b) \n-- -- -- 897 -- -- (411) (616) (770) (943) \n-- -- -- -- -- -- -- -- -- -- \n(54) (62) (73) (71) (75) (75) (76) (128) (45) \n-- \n \nCovered employee payroll \n(c) \n2,630,167 2,680,972 2,809,199 2,674,155 2,571,042 2,486,780 2,414,884 2,335,773 2,335,773 2,353,225 \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \n \nContributions as a percentage \nof coveredemployee payroll \n(b/c) \n9.8 % 10.1 10.2 10.5 10.2 10.5 11.3 15.4 18.4 22.0 \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \n \n Financial \nRequired Supplementary Information (UNAUDITED) Schedules of Employers' and Nonemployers' Contributions - Defined Benefit Pension Plans \nFor year ended June 30 (In thousands) \n44 \n \nGeorgia Judicial Retirement System Georgia Military Pension Fund4 \n \nYear Ended \n6/30/2006 6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 \n6/30/2006 6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 \n \nActuarially Determined Contribution \n(a) \n \n$ \n \n1,683 \n \n1,778 \n \n2,395 \n \n1,703 \n \n2,600 \n \n1,932 \n \n2,083 \n \n2,279 \n \n2,375 \n \n4,261 \n \n891 1,005 1,103 1,323 1,434 1,282 1,521 1,703 1,892 1,893 \n \nContributions in relation to the actuarially determined contribution \n(b) \n1,683 1,778 2,395 1,703 2,600 1,932 2,083 2,279 2,375 4,261 \n891 1,005 1,103 1,323 1,434 1,282 1,521 1,703 1,892 1,893 \n \nContribution deficiency (excess) \n(a-b) \n-- -- -- -- -- -- -- -- -- -- \n-- -- -- -- -- -- -- -- -- -- \n \nCovered employee payroll \n(c) \n45,308 48,621 51,102 52,803 51,293 52,331 51,898 52,807 54,787 54,272 \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \n \nContributions as a percentage \nof coveredemployee payroll \n(b/c) \n3.7 % 3.7 4.7 3.2 5.1 3.7 4.0 4.3 4.3 7.9 \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \n \nThis data, except for annual covered payroll, was provided by the System's actuary. \n1 An employer group within ERS did not contribute the full actuarially determined contribution. This employer is making additional contributions to repay this shortfall. 2No statistics regarding covered payroll are available. Contributions are not based upon members'salaries, but are simply $4 per member, per month, for nine months, each fiscal year if hired prior to July 1, 2012 and $10 per member, per month, for nine months, if hired after July 1, 2012. 3 The General Assembly of Georgia made contributions each year that were not required. 4No statistics regarding covered payroll are available. Active and inactive plan member information is maintained by the Georgia Department of Defense. \nSee accompanying notes to required supplementary schedules and accompanying independent auditors'report. \n \n Financial \nRequired Supplementary Information (UNAUDITED) \nSchedules of Employers' and Nonemployers' Net Pension Liability  Defined Benefit Pension Plans \n(In thousands) \nEmployees' Retirement System: Total pension liability Plan fiduciary net position Employers' and nonemployers' net pension liability Plan fiduciary net position as a percentage of the total pension liability Covered-employee payroll Employers'and nonemployers'net pension liability as a percentage of covered-employee payroll \nPublic School Employees Retirement System: Total pension liability Plan fiduciary net position Employers' and nonemployers' net pension liability Plan fiduciary net position as a percentage of the total pension liability Covered-employee payroll Employers'and nonemployers'net pension liability as a percentage of covered-employee payroll \nLegislative Retirement System: Total pension liability Plan fiduciary net position Employer's net pension liability (asset) Plan fiduciary net position as a percentage of the total pension liability Covered-employee payroll Employer's net pension liability (asset) as a percentage of covered-employee payroll \nGeorgia Judicial Retirement System: Total pension liability Plan fiduciary net position Employers' and nonemployers' net pension liability (asset) Plan fiduciary net position as a percentage of the total pension liability Covered-employee payroll Employers'and nonemployers'net pension liability (asset) as a percentage of covered-employee payroll \nGeorgia Military Pension Fund: Total pension liability Plan fiduciary net position Employer's net pension liability Plan fiduciary net position as a percentage of the total pension liability Covered-employee payroll Employer's net pension liability as a percentage of covered-employee payroll \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors'report. \n \nJune 30, 2015 \n \nJune 30, 2014 \n \n$ \n \n17,019,362 \n \n12,967,964 \n \n$ \n \n4,051,398 \n \n76.20 % \n \n$ \n \n2,353,225 \n \n172.16 % \n \n17,042,149 13,291,531 \n3,750,618 \n77.99 % 2,335,773 \n160.57 % \n \n$ \n \n946,200 \n \n823,150 \n \n930,745 821,733 \n \n$ \n \n123,050 \n \n109,012 \n \n87.00 % n/a n/a \n \n88.29 % n/a n/a \n \n$ \n \n25,271 \n \n32,359 \n \n$ \n \n(7,088) \n \n128.05 % n/a n/a \n \n25,216 32,794 \n(7,578) \n130.05 % n/a n/a \n \n$ \n \n357,081 \n \n404,852 \n \n$ \n \n(47,771) \n \n113.38 % \n \n$ \n \n54,272 \n \n(88.02) % \n \n350,443 400,790 \n(50,347) \n114.37 % 54,787 (91.90) % \n \n$ \n \n33,343 \n \n16,712 \n \n$ \n \n16,631 \n \n50.12 % n/a n/a \n \n31,511 15,251 \n16,260 \n48.40 % n/a n/a \n \n(continued) 45 \n \n Financial \nRequired Supplementary Information (UNAUDITED) \nSchedules of Changes in Employers' and Nonemployers' Net Pension Liability  Defined Benefit Pension Plans \n(In thousands) \n \nEmployees' Retirement System: Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions \nNet change in total pension liability Total pension liability-beginning \nTotal pension liability-ending (a) \nPlan fiduciary net position: Contributions-employer Contributions-nonemployer Contributions-member Administrative expense allotment Net investment income Benefit payments Administrative expense Refunds of contributions Other \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \nPlan fiduciary net position-ending (b) \nNet pension liability-ending (a)-(b) \n \nJune 30, 2015 June 30, 2014 \n \n$ \n \n145,045 \n \n1,227,846 \n \n-- \n \n(53,950) \n \n-- \n \n(1,334,278) \n \n(7,450) \n \n(22,787) 17,042,149 \n \n17,019,362 \n \n505,668 12,495 33,713 10 \n474,147 (1,334,278) \n(7,872) (7,450) \n-- \n \n(323,657) 13,291,531 \n \n12,967,964 \n \n$ \n \n4,051,398 \n \n150,075 1,224,380 \n-- -- -- (1,305,998) (8,757) \n59,700 16,982,449 \n17,042,149 \n418,807 10,945 32,423 -- \n2,021,748 (1,305,998) \n(7,440) (8,757) \n-- \n1,161,728 12,129,803 \n13,291,531 \n3,750,618 \n \nPublic School Employees Retirement System: Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions \nNet change in total pension liability Total pension liability-beginning \nTotal pension liability-ending (a) \nPlan fiduciary net position: Contributions-nonemployer Contributions-member Net investment income Benefit payments Administrative expense Refunds of contributions Other \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \nPlan fiduciary net position-ending (b) \nNet pension liability-ending (a)-(b) \n \n$ \n \n12,088 \n \n67,652 \n \n-- \n \n(6,858) \n \n-- \n \n(56,972) \n \n(455) \n \n15,455 930,745 \n \n946,200 \n \n11,049 66,143 \n-- -- -- (56,189) (514) \n20,489 910,256 \n930,745 \n \n28,461 1,800 \n30,129 (56,972) \n(1,545) (456) -- \n \n1,417 821,733 \n \n823,150 \n \n$ \n \n123,050 \n \n27,160 1,659 \n123,799 (56,189) \n(1,450) (514) -- \n94,465 727,268 \n821,733 \n109,012 \n \n(continued) 46 \n \n Financial \nRequired Supplementary Information (UNAUDITED) \nSchedules of Changes in Employers' and Nonemployers' Net Pension Liability  Defined Benefit Pension Plans \n(In thousands) \n \nLegislative Retirement System: Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions \nNet change in total pension liability Total pension liability-beginning \nTotal pension liability-ending (a) \nPlan fiduciary net position: Contributions-employer Contributions-member Net investment income Benefit payments Administrative expense Refunds of contributions Other \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \nPlan fiduciary net position-ending (b) \nNet pension liability (asset)-ending (a)-(b) \n \nJune 30, 2015 June 30, 2014 \n \n$ \n \n338 \n \n1,824 \n \n-- \n \n(325) \n \n-- \n \n(1,756) \n \n(26) \n \n55 25,216 \n \n25,271 \n \n-- 327 1,189 (1,756) (169) (26) -- \n \n(435) 32,794 \n \n32,359 \n \n$ \n \n(7,088) \n \n344 1,799 \n-- -- -- (1,801) (30) \n312 24,904 \n25,216 \n45 282 4,969 (1,801) (152) (30) -- \n3,313 29,481 \n32,794 \n(7,578) \n \nGeorgia Judicial Retirement System: Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions \nNet change in total pension liability Total pension liability-beginning \nTotal pension liability-ending (a) \nPlan fiduciary net position: Contributions-employer Contributions-nonemployer Contributions-member Net investment income Benefit payments Administrative expense Refunds of contributions Other \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \nPlan fiduciary net position-ending (b) \nNet pension liability (asset)-ending (a)-(b) \n \n$ \n \n7,751 \n \n25,566 \n \n-- \n \n(7,542) \n \n-- \n \n(18,365) \n \n(772) \n \n6,638 350,443 \n \n357,081 \n \n2,696 1,564 5,061 14,697 (18,365) \n(819) (772) \n-- \n \n4,062 400,790 \n \n404,852 \n \n$ \n \n(47,771) \n \n7,584 24,530 \n-- -- -- (17,441) (22) \n14,651 335,792 \n350,443 \n1,373 1,002 4,731 60,012 (17,441) \n(754) (22) -- \n48,901 351,889 \n400,790 \n(50,347) \n \n47 \n \n(continued) \n \n Financial \nRequired Supplementary Information (UNAUDITED) \nSchedules of Changes in Employers' and Nonemployers' Net Pension Liability  Defined Benefit Pension Plans \n(In thousands) \n \nGeorgia Military Pension Fund Total pension liability: Service cost Interest Benefit changes Differences between expected and actual experience Changes of assumptions Benefit payments Refunds of contributions \nNet change in total pension liability Total pension liability-beginning \nTotal pension liability-ending (a) \nPlan fiduciary net position: Contributions-employer Contributions-member Net investment income Benefit payments Administrative expense Refunds of contributions Other \nNet change in plan fiduciary net position Plan fiduciary net position-beginning \nPlan fiduciary net position-ending (b) \nNet pension liability-ending (a)-(b) \n \nJune 30, 2015 June 30, 2014 \n \n$ \n \n73 \n \n2,330 \n \n-- \n \n326 \n \n-- \n \n(897) \n \n-- \n \n1,832 31,511 \n \n33,343 \n \n1,893 -- \n585 (896) (121) \n-- -- \n \n1,461 15,251 \n \n16,712 \n \n$ \n \n16,631 \n \n73 2,223 \n-- -- -- (841) -- \n1,455 30,056 \n31,511 \n1,892 -- \n2,179 (841) (110) -- -- \n3,120 12,131 \n15,251 \n16,260 \n \nSchedules above are intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedule and accompanying independent auditors'report. \n \n48 \n \n Financial \nRequired Supplementary Information (UNAUDITED) Schedule of Investment Returns \nFor the year ended June 30, 2015 \nPooled Investment Fund: Annual money-weighted rate of return, net of investment expense \nSchedule is intended to show information for 10 years. Additional years will be displayed as they become available. See accompanying notes to required supplementary schedules and accompanying independent auditors'report. \n \n2015 \n(5.32) % \n \n2014 \n5.95 % \n \n49 \n \n Financial \nRequired Supplementary Information (UNAUDITED) Schedules of Funding Progress - Defined Benefit OPEB Plans \nJune 30, 2015 (In thousands) \n50 \n \nState Employees' Assurance Department-Active State Employees' Assurance Department-OPEB \n \nActuarial valuation \ndate \n6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 \n6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 \n \nActuarial value of plan assets \n(a) \n \n$ \n \n144,161 \n \n156,132 \n \n184,783 \n \n183,390 \n \n204,779 \n \n235,358 \n \n628,199 680,449 807,893 818,284 907,831 1,037,901 \n \nThis data, except for annual covered payroll, was provided by the System's actuary. The SBF does not obtain an actuarial valuation as there are no funding requirements or liabilities related to the fund. See accompanying notes to required supplementary schedules and accompanying independent auditors'report. \n \nActuarial accrued liability (AAL) projected unit credit \n(b) \n61,351 40,523 40,145 39,317 37,512 35,877 \n733,671 691,001 678,421 704,617 754,786 788,020 \n \nUnfunded AAL/ (funded excess) \n(b-a) \n(82,810) (115,609) (144,638) (144,073) (167,267) (199,481) \n105,472 10,552 \n(129,472) (113,667) (153,045) (249,881) \n \nFunded ratio (a/b) \n235 % 385 460 466 546 656 \n86 98 119 116 120 132 \n \nAnnual covered payroll \n(c) \n$ 2,653,527 2,401,974 2,166,982 1,962,800 1,767,052 1,628,712 \n2,653,527 2,401,974 2,166,982 1,962,800 1,767,052 1,628,712 \n \nUnfunded AAL/ (funded excess) as percentage of covered payroll \n[(b-a)/c] \n(3) % (5) (7) (7) (9) (12) \n4 -- (6) (6) (9) (15) \n \n Financial \nRequired Supplementary Information (UNAUDITED) \nSchedules of Employer Contributions-Defined Benefit OPEB Plans \nJune 30, 2015 (In thousands) \n \nState Employees'Assurance Department-Active State Employees'Assurance Department-OPEB \n \nYear ended June 30 \n2009 2010 2011 2012 2013 2014 \n2009 2010 2011 20121 20131 2014 \n \nState annual required \ncontribution \n \nPercentage contributed \n \n$ \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- -- -- 12,724 5,009 -- \n \nN/A N/A N/A N/A N/A N/A \nN/A N/A N/A 100.0 % 100.0 % N/A \n \nThis data was provided by the System's actuary. \nThere are no required contributions to the SBF Fund. 1 During fiscal year 2012, in lieu of a required employer contribution, $12,724,000 was transferred from Survivor Benefit Fund to SEAD-OPEB. During fiscal year 2013, in lieu of a required employer contribution, $5,009,000 was transferred from Survivor Benefit Fund to SEAD-OPEB. \nSee accompanying notes to required supplementary schedules and accompanying independent auditors'report. \n \n51 \n \n Financial \nNotes to Required Supplementary Information (UNAUDITED) \nJune 30, 2015 \n(1) Schedule of Employers' and Nonemployers' Contributions  Defined Benefit Pension Plans This schedule presents the required contributions and the percent of required contributions actually contributed. \n(2) Schedule of Employers' and Nonemployers' Net Pension Liability  Defined Benefit Pension Plans The components of the net pension liability as of the fiscal year end and the fiduciary net position as a percentage of the total pension liability as of that date are presented in this schedule. This trend information will be accumulated to display a ten-year presentation. \n(3) Schedule of Changes in Employers' and Nonemployers' Net Pension Liability  Defined Benefit Pension Plans Net pension liability, which is measured as total pension liability less the amount of the fiduciary net position, is presented in this schedule. This trend information will be accumulated to display a ten-year presentation. \n(4) Schedule of Investment Returns This schedule presents historical trend information about the annual money-weighted rate of return on plan investments, net of plan investment expense. This trend information will be accumulated to display a ten-year presentation. \n(5) Individual Plan Information This note provides information about changes of benefit terms, changes of assumptions, and methods and assumptions used in calculations of actuarially determined contributions. \nEmployees' Retirement System Changes of benefit terms - a new benefit tier was added for members joining the System on and after January 1, 2009. \nChanges of assumptions - in 2010 and later, the expectation of retired life mortality was changed to the RP-2000 Mortality Table rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience. \nPublic School Employees Retirement System Changes of benefit terms - the member contribution rate was increased from $4 to $10 per month for members joining the System on or after July 1, 2012. \nChanges of assumptions - in 2010 and later, the expectation of retired life mortality was changed to the RP-2000 Mortality Table rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. \nLegislative Retirement System Changes of benefit terms - none. \nChanges of assumptions - in 2010 and later, the expectation of retired life mortality was changed to the RP-2000 Mortality Table rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, and mortality were adjusted to more closely reflect actual experience. \nGeorgia Judicial Retirement System Changes of benefit terms - spouses benefits were changed for members joining the System on and after July 1, 2012. \nChanges of assumptions - in 2010 and later, the expectation of retired life mortality was changed to the RP-2000 Mortality Table rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience. \nGeorgia Military Pension Fund Changes of benefit terms - none. \nChanges of assumptions - in 2010 and later, the expectation of retired life mortality was changed to the RP-2000 Mortality Table rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement and mortality were adjusted to more closely reflect actual experience. \n(continued) 52 \n \n Financial \nNotes to Required Supplementary Information (UNAUDITED) \nMethod and assumptions used in calculations of actuarially determined contributions. The actuarially determined contribution rates in the schedules of employers' and nonemployers'contributions are calculated as of June 30, 2012, three years prior to the end of the fiscal year in which contributions are reported. The following actuarial methods and assumptions were used to determine the most recent contribution rates reported in those schedules: \n \nActuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary Increases: \nFiscal Year 2012-2013 Fiscal Year 2014+, including inflation Investment rate of return \n \nERS \nEntry age Level dollar, open 30 years 7-year smoothed market 3.00% \n \nPSERS \nEntry age Level dollar, open 30 years 7-year smoothed market 3.00% \n \nLRS \nEntry age Level dollar, open 30 years 7-year smoothed market 3.00% \n \n2.725-4.625% 5.45-9.25% 7.50% net of pension plan investment expense, including inflation \n \nn/a n/a 7.50% net of pension plan investment expense, including inflation \n \nn/a n/a 7.50% net of pension plan investment expense, including inflation \n \nActuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary Increases: \nFiscal Year 2012-2013 Fiscal Year 2014+, including inflation Investment rate of return \n \nGJRS \nEntry age Level percent of pay, open 10 years 7-year smoothed market 3.00% \n \nGMPF \nEntry age Level dollar, open 20 years 7-year smoothed market 3.00% \n \n3.00% 6.00% 7.50% net of pension plan investment expense, including inflation \n \nn/a n/a 7.50% net of pension plan investment expense, including inflation \n \n(6) Schedule of Funding Progress  Defined Benefit OPEB Plans The actuarial value of assets is equal to the fair value of assets for the defined benefit OPEB plans. \n(7) Schedule of Employer Contributions  Defined Benefit OPEB Plans The required employer contributions and percent of those contributions actually made are presented in the schedule. \n \n(continued) 53 \n \n Financial \nNotes to Required Supplementary Information (UNAUDITED) \n(8) Actuarial Assumptions  Defined Benefit OPEB Plans The SBF does not have an actuarial valuation as there are no funding requirements and no liabilities related to the fund. The information presented as the required supplementary information was determined as part of the actuarial valuations for the SEAD-Active and SEAD-OPEB plans at the dates indicated. Additional information from the actuarial valuations for the most recent two-year period is as follows: \n \nValuation date Actuarial cost method Amortization method Remaining amortization period of the funded excess Asset valuation method Actuarial assumptions: \nInvestment rate of return Projected salary increases: \nERS GJRS LRS \n \nSEAD - Active June 30, 2014 Projected Unit Credit Level dollar, closed n/a Market value of assets \n7.50% \n5.45-9.25% 6.00% 0.00% \n \nSEAD - Active June 30, 2013 Projected Unit Credit Level dollar, closed n/a Market value of assets \n7.50% \n5.45-9.25% 6.00% 0.00% \n \nValuation date Actuarial cost method Amortization method Remaining amortization period of the funded excess Asset valuation method Actuarial assumptions: \nInvestment rate of return Projected salary increases: \nERS GJRS LRS \n \nSEAD - OPEB June 30, 2014 Projected Unit Credit Level dollar, closed n/a Market value of assets \n7.50% \n5.45-9.25% 6.00% 0.00% \n \nSEAD - OPEB June 30, 2013 Projected Unit Credit Level dollar, closed n/a Market value of assets \n7.50% \n5.45-9.25% 6.00% 0.00% \n \nIncludes inflation rate of 3.00% in the 2014 and 2013 valuations. \n \n54 \n \n Financial \nAdditional Information \nSchedule of Administrative Expenses - Contributions and Expenses \nYear ended June 30, 2015 (with comparative amounts for the year ended June 30, 2014) (In thousands) \nContributions: Employees' Retirement System Public School Employees Retirement System Legislative Retirement System Georgia Judicial Retirement System State Employees'Assurance Department - Active State Employees'Assurance Department - OPEB Georgia Defined Contribution Plan 401(k) Plan 457 Plan Georgia Military Pension Fund Superior Court Judges Retirement Fund District Attorneys Retirement Fund \nTotal contributions \nExpenses: Personal services: Salaries and wages Retirement contributions FICA Health insurance Miscellaneous \nCommunications: Postage Publications and printing Telecommunications Travel \nProfessional services: Accounting services Computer services Contracts Actuarial services Medical services Professional fees Legal services \nManagement fees: Building maintenance \nOther services and charges: Temporary services Supplies and materials Repairs and maintenance Courier services Depreciation Miscellaneous Office equipment \nTotal expenses \nNet income \nSee accompanying independent auditors'report. \n \n2015 \n \n2014 \n \n$ \n \n7,872 $ \n \n7,440 \n \n1,545 \n \n1,450 \n \n169 \n \n152 \n \n819 \n \n754 \n \n47 \n \n46 \n \n428 \n \n414 \n \n990 \n \n991 \n \n2,755 \n \n2,300 \n \n866 \n \n812 \n \n121 \n \n110 \n \n3 \n \n6 \n \n1 \n \n1 \n \n15,616 \n \n14,476 \n \n5,098 1,084 \n361 1,552 \n89 \n8,184 \n267 39 63 14 \n383 \n603 792 3,013 380 187 309 \n41 \n5,325 \n \n4,961 881 349 \n1,529 93 \n7,813 \n228 11 71 14 \n324 \n585 715 2,753 213 177 172 \n37 \n4,652 \n \n617 \n \n617 \n \n621 \n \n673 \n \n57 \n \n54 \n \n18 \n \n17 \n \n3 \n \n3 \n \n352 \n \n270 \n \n53 \n \n50 \n \n3 \n \n3 \n \n1,107 \n \n1,070 \n \n15,616 \n \n14,476 \n \n$ \n \n$ \n \n \n \n55 \n \n Financial \nAdditional Information \nSchedule of Investment Expenses \nYear ended June 30, 2015 (with comparative amounts for the year ended June 30, 2014) \nInvestment advisory and custodial fees Miscellaneous Total investment expenses \nSee accompanying independent auditors'report. \n \n2015 \n \n2014 \n \n$ \n \n7,442,722 $ \n \n8,254,438 \n \n13,196,528 \n \n11,116,668 \n \n$ \n \n20,639,250 $ \n \n19,371,106 \n \n56 \n \n Investment Section \n \nERS \n \nGMPF \n \nGJRS \n \nERSGA \n \nLRS \n \nPSR \n \nGDCP \n \nPSERS \n \nE RSGA \nEmployees' Retirement System of Georgia \nServing those who serve Georgia \n \n Investment \nInvestment Overview \nOn the macro front, the concerns are largely the same as the prior year with the addition of the effect of low oil prices on energy related companies. The economy is growing at a pedestrian rate of just above 2% per year and Europe's recovery remains relatively weak. A slowdown in China's rate of growth is having a negative effect on commodities and emerging markets. The Middle East and the Ukraine remain in the headlines. Offsetting these concerns to some extent has been a decent housing market and a good jobs market. Unlike the robust returns of last year, the markets took a bit of a breather. The U.S. stock market returned 7.3% for the fiscal year. \nIt is difficult not to get caught up in the headlines, but as a pension plan it is more important to stay focused on the long term. The System continues to invest in a mix of liquid, high-quality bonds and stocks. In addition, the System is implementing a private markets program in a disciplined manner. These types of investments allow the System to participate in rising markets while moderating the risks on the downside. A high-quality balanced fund has proven to be a successful strategy in a variety of markets over long periods of time. \nAs in previous years, the bias to quality was a primary goal and was successfully met. \"Conservation of Capital\"and \"Conservatism\"remain the guiding principles for investment decisions. The Board of Trustees continues to use a diversified portfolio to accomplish these objectives. \nThe domestic economy continued to grow for the fiscal year. Industrial production, personal income and housing all improved last year, while the employment data has been strong. There continues to be general weakness in most foreign economies. A combination of stimulative policies by central bankers and improving developed economies helped those financial markets relative to emerging markets. \nStudies undertaken to evaluate the investment returns of pension funds over very long time horizons indicate that the asset allocation decision has the largest impact on the fund's returns. Although the returns for the various asset categories vary from year to year, over the long term equities usually outperform fixed income and cash by a very wide margin. For that reason, the System has generally maintained a significant equity exposure with the remainder of the fund invested in fixed income securities designed to generate income and preserve capital. \n \nReturns for one, three, five, ten and twenty year periods are presented in this section. Longer time periods, such as the twenty-year period, allow for more valid evaluation of returns, both in absolute terms and relative to an asset class index, by reducing emphasis on the short-term volatility of markets. The Daily Valuation Method was used to calculate rates of return in a manner consistent with the CFA Institute's objectives as stated in its publication \"Global Investment Performance Standards Handbook,\" third edition. \nThe return for the S\u0026P 500 was 7.4%. U.S. large cap stocks outperformed small cap and mid cap stocks last year. The S\u0026P MidCap 400 and the S\u0026P SmallCap 600 indexes had returns of 6.4% and 6.7%, respectively. The Healthcare and Consumer Discretionary sectors had the best performance, while Energy and Utilities lagged. \nInternational markets, on the other hand, had negative returns. The MSCI EAFE Index had a -4.2% return and the MSCI Emerging Market Index had a return of -5.1%. The returns were much stronger in local currency terms with only Canada suffering a negative return in its own currency. The strength of the dollar reduced those returns, in some cases by over 20%. \nThe longer the maturity of the bond, the better the performance. In contrast to the previous year, the spread on corporate bonds widened, which lowered their returns. The total return on the 10-year Treasury Note was 3.8% and the 30-year Treasury Bond had a 6.9% return. The return on short-term Treasury bills was negligible again due to the Federal Reserve's policies to stimulate the economy. \nWe look at two fixed income indexes to measure the bond market's performance. The Barclays Government / Credit Index had a return of 1.7%. It is a broad index containing corporate and government sponsored bonds as well as Treasuries. The Citigroup Treasury / Sponsored / AAA/AA had a return of 2.2% and is a broad index containing higher rated corporate bonds as well as Treasuries and Government securities. Higher quality bonds outperformed lower quality bonds as evidenced by the 2.0% return for AA rated bonds versus 0.3% for BBB rated bonds. \nIn 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.\" \nPrepared by the Division of Investment Services \n \n58 \n \n Investment \nPooled Investment Fund \nAs of June 30, 2015 \nEmployees' Retirement System (ERS) Public School Employees Retirement System (PSERS) Legislative Retirement System (LRS) Georgia Judicial Retirement System (GJRS) State Employees'Assurance Department (SEAD) - Active State Employees'Assurance Department (SEAD) - OPEB Survivors Benefit Fund (SBF) Georgia Military Pension Fund (GMPF) \nTotal \nRates of Return \n \n$ \n \n12,926,975,325 \n \n824,101,248 \n \n32,310,792 \n \n404,378,302 \n \n240,578,781 \n \n1,046,257,156 \n \n119,260,307 \n \n16,668,905 \n \n$ \n \n15,610,530,816 \n \n1 year 3 year 5 year 10 year 20 year \n \nEquities \n4.35 % 15.40 % 15.17 % \n7.22 % 8.40 % \n \nS\u0026P 1500 \n7.31 % 17.47 % 17.43 % \n8.10 % 9.19 % \n \nMSCI ACWI ex US (5.26)% 9.44 % 7.76 % 5.54 % -- \n \nFixed Income \n2.13 % 1.49 % 2.98 % 4.42 % 6.01 % \n \nBarclay's Govt/Credit \n1.69 % 1.76 % 3.52 % 4.38 % 5.63 % \n \n1 Month T-Bills \n0.02 % 0.03 % 0.05 % 1.26 % 2.41 % \n \nTotal Portfolio \n3.74 % 11.31 % 11.32 % 6.86 % 7.82 % \n \nNote: Time-weighted rates of return are calculated using the Daily Valuation method based on market rates of return. 59 \n \nCPI \n0.18 % 1.32 % 1.83 % 2.07 % 2.25 % \n \n Investment \nAsset Allocation at Fair Value \n \nInvestment Summary \nAsset Allocation as of June 30 (in percentages) \nEquities Fixed Income Mutual and Common Collective Trust Funds and Separate Accounts Private Equity Total \nAsset Allocation as of June 30 (in millions) \nEquities Fixed Income Mutual and Common Collective Trust Funds and Separate Accounts Private Equity Total \n \n2015 \n65.3% 27.2 \n7.2 0.3 \n \n2014 2013 \n \n67.2 68.1 \n \n25.6 25.0 \n \n7.1 \n \n6.9 \n \n0.1 \n \n-- \n \n2012 \n65.9 27.3 \n6.8 -- \n \n2011 \n67.2 26.2 \n6.6 -- \n \n2010 \n59.4 34.1 \n6.5 -- \n \n100% \n \n100 100 \n \n100 \n \n100 \n \n100 \n \n2015 \n$ 10,915 4,543 1,204 52 \n \n2014 \n11,372 4,314 1,209 \n22 \n \n2013 \n10,374 3,811 1,057 -- \n \n2012 \n9,600 3,972 \n995 -- \n \n2011 \n10,060 3,902 992 -- \n \n2010 \n7,870 4,506 \n867 -- \n \n$ 16,714 16,917 15,242 14,567 14,954 13,243 \n \n60 \n \n Investment \nSchedule of Fees and Commissions \nFor the Year Ended June 30, 2015 \nInvestment Advisors' Fees:* U.S. Equity International Equity Fixed Income \nInvestment Commissions: U.S. Equity International Equity \nTransaction Fees: Miscellaneous:* \nTotal Fees and Commissions \n \n*A portion of these amounts are included in total investment expenses shown on page 56. \n \nTwenty Largest Equity Holdings  \nAs of June 30, 2015 \n \nShares \n1,689,826 3,062,394 1,565,813 1,167,960 \n207,361 1,749,243 1,375,688 2,741,694 1,097,688 1,839,192 \n863,919 3,111,870 \n585,500 901,900 1,018,200 3,763,973 2,038,924 1,560,790 371,741 1,666,019 \n \nCompany \nApple Inc. Microsoft Corp. Exxon Mobil Corp. Johnson \u0026 Johnson Google Inc. Wells Fargo \u0026 Co. JPMorgan Chase \u0026 Co. Pfizer Inc. Procter \u0026 Gamble Co. Verizon Communications Inc. Chevron Corp. General Electric Co. Berkshire Hathaway Inc. Facebook, Inc. Visa Inc. Bank of America Corp. Intel Corp. Coca Cola Co. International Business Machines Corp. AT\u0026T Inc. \nTop 20 Equities Remaining Equities \n \nTotal Equities \n \nA complete listing is available upon written request, subject to restrictions of O.C.G.A. Section 47-1-14. 61 \n \n$ \n \n3,385,606 \n \n3,635,882 \n \n-- \n \n1,369,511 3,216,469 \n417,009 15,352,884 \n \n$ \n \n27,377,361 \n \nFair Value $ 211,946,426 \n135,204,695 130,275,642 113,829,382 110,104,038 \n98,377,426 93,216,619 91,929,000 85,883,109 85,724,739 83,342,266 82,682,386 79,692,405 77,351,454 68,372,130 64,062,820 62,013,873 61,229,792 60,467,391 59,176,995 \n$ 1,854,882,588 9,060,251,306 \n$ 10,915,133,894 \n \n Investment \nFixed Income Holdings* \nAs of June 30, 2015 \n \nIssuer \nUS TREAS. NOTE US TREAS. NOTE US TREAS. NOTE GENERAL ELECTRIC CO US TREAS. NOTE US TREAS. BOND US TREAS. BOND EMC CORP US TREAS. NOTE GENERAL ELECTRIC CAP CORP US TREAS. NOTE US TREAS. NOTE US TREAS. NOTE US TREAS. NOTE SHELL INTERNATIONAL FIN PROCTER \u0026 GAMBLE CO BP CAPITAL MARKETS CISCO SYSTEMS INC GENERAL ELECTRIC CAP CORP ANHEUSER-BUSCH COMCAST-NBC EXXON MOBIL CORP JPMORGAN CHASE \u0026 CO PRAXAIR INC PRAXAIR INC MICROSOFT CORP US TREAS. NOTE MICROSOFT CORP UNITED PARCEL SERVICE WALT DISNEY COMPANY ONTARIO (PROVINCE OF) ROYAL BANK OF CANADA AT\u0026T INC US TREAS. NOTE INTEL CORP SCHLUMBERGER INVESTMENT WAL-MART STORES INC COCA COLA CO PFIZER INC MICROSOFT CORP GENERAL ELECTRIC CAP CORP GENERAL ELECTRIC CAP CORP ILLINOIS TOOL WORKS INC ILLINOIS TOOL WORKS INC COCA COLA CO US TREAS. NOTE US TREAS. NOTE US TREAS. NOTE MICROSOFT CORP \n \nYear of Maturity \n2024 2017 2021 2022 2024 2028 2039 2020 2017 2026 2019 2019 2019 2016 2018 2018 2020 2017 2018 2017 2018 2019 2017 2019 2018 2025 2021 2015 2021 2017 2017 2017 2017 2022 2021 2021 2016 2018 2018 2035 2020 2016 2019 2017 2020 2019 2022 2022 2017 \n \nERS Fixed Income Securities Defined Contribution Fixed Income Securities \n \nTotal ERS and Defined Contribution Fixed Income Securities \n \nInterest Rate \n2.2500 1.8750 2.1250 2.7000 2.3750 5.2500 3.5000 2.6500 3.1250 5.5500 1.6250 1.6250 1.6250 0.8750 1.9000 1.6000 2.5210 1.1000 1.6250 1.1250 1.6620 1.8190 1.2500 1.9000 1.2000 2.7000 3.1250 1.6250 3.1250 1.1250 1.1000 1.1700 1.4000 1.6250 3.3000 3.3000 2.8000 1.6500 1.5000 3.5000 3.2500 1.4500 1.9500 0.9000 2.4500 1.0000 1.7500 1.7500 0.8750 \n \n*A complete listing is available upon written request, subject to restrictions of O.C.G.A. Section 47-1-14. 62 \n \nPar Value \n \n$ \n \n309,000,000 \n \n254,000,000 \n \n155,000,000 \n \n145,000,000 \n \n136,000,000 \n \n102,000,000 \n \n115,000,000 \n \n112,000,000 \n \n108,000,000 \n \n92,000,000 \n \n102,000,000 \n \n102,000,000 \n \n97,000,000 \n \n97,000,000 \n \n96,000,000 \n \n96,000,000 \n \n96,000,000 \n \n96,000,000 \n \n96,000,000 \n \n96,000,000 \n \n96,000,000 \n \n96,000,000 \n \n96,000,000 \n \n96,000,000 \n \n96,000,000 \n \n97,000,000 \n \n79,000,000 \n \n83,000,000 \n \n77,000,000 \n \n77,000,000 \n \n77,000,000 \n \n77,000,000 \n \n77,000,000 \n \n64,000,000 \n \n59,000,000 \n \n58,000,000 \n \n58,000,000 \n \n58,000,000 \n \n58,000,000 \n \n58,000,000 \n \n49,000,000 \n \n48,000,000 \n \n48,000,000 \n \n48,000,000 \n \n39,000,000 \n \n34,000,000 \n \n30,000,000 \n \n30,000,000 \n \n20,000,000 \n \n$ 4,385,000,000 85,000,000 \n \n$ 4,470,000,000 \n \nFair Value \n \n$ \n \n307,118,190 \n \n260,428,740 \n \n156,743,750 \n \n141,747,650 \n \n136,733,040 \n \n132,950,880 \n \n123,966,550 \n \n113,148,000 \n \n112,437,720 \n \n106,880,080 \n \n103,139,340 \n \n102,963,900 \n \n97,780,850 \n \n97,560,660 \n \n96,936,000 \n \n96,797,760 \n \n96,672,960 \n \n96,338,880 \n \n96,279,360 \n \n96,266,880 \n \n96,196,800 \n \n96,124,800 \n \n95,981,760 \n \n95,690,880 \n \n94,523,520 \n \n93,473,080 \n \n84,499,190 \n \n83,260,620 \n \n80,190,110 \n \n77,381,150 \n \n77,112,420 \n \n76,672,750 \n \n76,494,880 \n \n62,040,320 \n \n61,581,250 \n \n59,697,660 \n \n59,062,560 \n \n58,306,820 \n \n58,040,020 \n \n53,023,600 \n \n50,154,440 \n \n48,306,720 \n \n48,241,920 \n \n48,031,200 \n \n39,581,490 \n \n33,410,440 \n \n29,477,400 \n \n29,456,400 \n \n19,955,800 \n \n$ 4,458,861,190 84,567,500 \n \n$ 4,543,428,690 \n \n Actuarial Section \n \nERS \n \nGMPF \n \nGJRS \n \nERSGA \n \nLRS \n \nPSR \n \nGDCP \n \nPSERS \n \nE RSGA \nEmployees' Retirement System of Georgia \nServing those who serve Georgia \n \n Actuarial \n \nERS \nApril 16, 2015 \nBoard of Trustees Employees' Retirement System of Georgia Two Northside 75, Suite 300 Atlanta, GA 30318-7701 \nAttn: Mr. James Potvin, Executive Director \nMembers of the Board: \nSection 47-2-26 of the law governing the operation of the Employees' Retirement System of Georgia provides that the actuary shall make annual valuations of the contingent assets and liabilities of the Retirement System on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2014. The report indicates that annual employer contributions at the rate of 19.94% of compensation for Old Plan Members, 24.69% of compensation for New Plan Members, and 21.69% of compensation for GSEPS Members for the fiscal year ending June 30, 2017 are sufficient to support the benefits of the System. \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2014 session of the General Assembly. \nThe System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for funding purposes meet the parameters set for the disclosures presented in the financial section by Governmental Accounting Standards Board (GASB) Statement No. 27. The funding objective of the plan is that contribution rates over time will remain level as a percent of payroll. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a level percent of payroll. Gains and losses are reflected in the total unfunded accrued liability which is being amortized on a level dollar basis in accordance with the funding policy adopted by the Board. \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \nEffective this fiscal year, the Plan was required to comply with the financial reporting requirements of GASB Statement No. 67. The necessary disclosure information has been provided in a separate supplemental report. \nThe System is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the System and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \n \nEdward A. Macdonald, ASA, FCA MAAA President \n \nSincerely yours, \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n64 \n \nCathy Turcot Principal and Managing Director \n \n Actuarial \n \nPSERS \nApril 16, 2015 \nBoard of Trustees Georgia Public School Employees Retirement System Two Northside 75, Suite 300 Atlanta, GA 30318-7701 \nAttn: Mr. James Potvin, Executive Director \nMembers of the Board: \nSection 47-4-60 of the law governing the operation of the Georgia Public School Employees Retirement System provides that the employer contribution shall be actuarially determined and approved by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2014. Based on a monthly benefit accrual rate of $14.75, the valuation indicates that annual employer contributions of $26,277,000 or $727.97 per active member for the fiscal year ending June 30, 2017 are sufficient to support the benefits of the System. \nThe results of the valuation reflect that the Board did not grant the anticipated cost-of-living increases (COLAs) to retired members on July 1, 2014 and on January 1, 2015. \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2014 session of the General Assembly. \nThe System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for funding purposes meet the parameters set for the disclosures presented in the financial section by Governmental Accounting Standards Board (GASB) Statement No. 27. The funding objective of the plan is that contribution rates over time will remain level as a dollar per active member. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a dollar per active member. Gains and losses are reflected in the total unfunded accrued liability which is being amortized as a level dollar per active member in accordance with the funding policy adopted by the Board. \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \nEffective this fiscal year, the Plan will be required to comply with the financial reporting requirements of GASB Statement No. 67. The necessary disclosure information has been provided in a separate supplemental report. \nThe System is currently being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is currently operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the System and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \n \nEdward A. Macdonald, ASA, FCA MAAA President \n \nSincerely yours, \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n65 \n \nCathy Turcot Principal and Managing Director \n \n Actuarial \n \nGJRS \nApril 16, 2015 \nBoard of Trustees Georgia Judicial Retirement System Two Northside 75, Suite 300 Atlanta, GA 30318-7701 \nAttn: Mr. James Potvin, Executive Director \nMembers of the Board: \nSection 47-23-21 of the law governing the operation of the Georgia Judicial Retirement System provides that the actuary shall make annual valuations of the contingent assets and liabilities of the Retirement System on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2014. The report indicates that annual employer contributions at the rate of 10.48% of compensation for the fiscal year ending June 30, 2017 are sufficient to support the benefits of the System. \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2014 session of the General Assembly. \nThe System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for funding purposes meet the parameters set for the disclosures presented in the financial section by Governmental Accounting Standards Board (GASB) Statement No. 27. The funding objective of the plan is that contribution rates over time will remain level as a percent of payroll. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a level percent of payroll. Gains and losses are reflected in the total unfunded accrued liability which is negative and being amortized as a level percent of payroll in accordance with the funding policy adopted by the Board. \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \nEffective this fiscal year, the Plan will be required to comply with the financial reporting requirements of GASB Statement No. 67. The necessary disclosure information has been provided in a separate supplemental report. \nThe System is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \n \nEdward A. Macdonald, ASA, FCA MAAA President \n \nSincerely yours, \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n66 \n \nCathy Turcot Principal and Managing Director \n \n Actuarial \n \nLRS \nApril 16, 2015 \nBoard of Trustees Legislative Retirement System of Georgia Two Northside 75, Suite 300 Atlanta, GA 30318-7701 \nAttn: Mr. James Potvin, Executive Director \nMembers of the Board: \nSection 47-6-22 of the law governing the operation of the Georgia Legislative Retirement System provides that the actuary shall make periodic valuations of the contingent assets and liabilities of the Retirement System on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the System prepared as of June 30, 2014. The report indicates that no annual employer contributions for the fiscal year ending June 30, 2017 are required to support the benefits of the System. \nThe results of the valuation reflect that the Board did not grant the anticipated cost-of-living increases (COLAs) to retired members on July 1, 2014 and on January 1, 2015. \nIn preparing the valuation, the actuary relied on data provided by the System. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the System enacted through the 2014 session of the General Assembly. \nThe System is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the System and to reasonable expectations of anticipated experience under the System. The assumptions and methods used for funding purposes meet the parameters set for the disclosures presented in the financial section by Governmental Accounting Standards Board (GASB) Statement No. 27. The funding objective of the plan is that contribution rates over time will remain level as a dollar per active member. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a level dollar per active member. Gains and losses are reflected in the total unfunded accrued liability which is negative and being amortized as a level dollar per active member in accordance with the funding policy adopted by the Board. \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \nEffective this fiscal year, the Plan will be required to comply with the financial reporting requirements of GASB Statement No. 67. The necessary disclosure information has been provided in a separate supplemental report. \nThe System is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the System is operating on an actuarially sound basis. Assuming that contributions to the System are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the System may be safely anticipated. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the System. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \n \nEdward A. Macdonald, ASA, FCA MAAA President \n \nSincerely yours, \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n67 \n \nCathy Turcot Principal and Managing Director \n \n Actuarial \n \nGMPF \nApril 16, 2015 \nBoard of Trustees Georgia Military Pension Fund Two Northside 75, Suite 300 Atlanta, GA 30318-7701 \nAttn: Mr. James Potvin, Executive Director \nMembers of the Board: \nSection 47-24-22 of the law governing the operation of the Georgia Military Pension Fund provides that the actuary shall make periodic valuations of the contingent assets and liabilities of the Pension Fund on the basis of regular interest and the tables last adopted by the Board of Trustees. We have submitted the report giving the results of the actuarial valuation of the Fund prepared as of June 30, 2014. The report indicates that annual employer contributions of $2,017,875 or $149.82 per active member for the fiscal year ending June 30, 2017 are sufficient to support the benefits of the Fund. \nIn preparing the valuation, the actuary relied on data provided by the Fund. While not verifying data at the source, the actuary performed tests for consistency and reasonableness. Our firm, as actuary, is responsible for all of the actuarial trend data in the financial section of the annual report and the supporting schedules in the actuarial section of the annual report. \nIn our opinion, the valuation is complete and accurate, and the methodology and assumptions are reasonable as a basis for the valuation. The valuation takes into account the effect of all amendments to the Fund enacted through the 2014 session of the General Assembly. \nThe Fund is funded on an actuarial reserve basis. The actuarial assumptions recommended by the actuary and adopted by the Board are in the aggregate reasonably related to the experience under the Fund and to reasonable expectations of anticipated experience under the Fund. The assumptions and methods used for funding purposes meet the parameters set for the disclosures presented in the financial section by Governmental Accounting Standards Board (GASB) Statement No. 27. The funding objective of the plan is that contribution rates over time will remain level as a dollar per active member. The valuation method used is the entry age normal cost method. The normal contribution rate to cover current cost has been determined as a dollar per active member. Gains and losses are reflected in the total unfunded accrued liability which is being amortized as a level dollar per active member in accordance with the funding policy adopted by the Board. \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \nEffective this fiscal year, the Plan will be required to comply with the financial reporting requirements of GASB Statement No. 67. The necessary disclosure information has been provided in a separate supplemental report. \nThe Fund is being funded in conformity with the minimum funding standard set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law and the funding policy adopted by the Board. In our opinion the Fund is operating on an actuarially sound basis. Assuming that contributions to the Fund are made by the employer from year to year in the future at the rates recommended on the basis of the successive actuarial valuations, the continued sufficiency of the retirement fund to provide the benefits called for under the Fund may be safely anticipated. \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience is performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the Fund. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \n \nEdward A. Macdonald, ASA, FCA MAAA President \n \nSincerely yours, \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n68 \n \nCathy Turcot Principal and Managing Director \n \n Actuarial \n \nSEAD Pre-Retirement \nApril 16, 2015 \nBoard of Trustees Employees' Retirement System of Georgia Two Northside 75, Suite 300 Atlanta, GA 30318-7701 \nAttention: Mr. James Potvin, Executive Director \nMembers of the Board: \nChapters 47-2 and 47-19 of the Code of Georgia which govern the operation of the Georgia Employees' Group Term Life Insurance Plan provide that the actuary shall make periodic valuations of the contingent assets and liabilities of the Insurance Plan on the basis of regular interest and the tables last adopted by the Board of Trustees. In this report, we have determined liabilities for life insurance benefits payable upon death in active service (PreRetirement). \nWe have submitted the report giving the results of the valuation of the Plan prepared as of June 30, 2014. The report indicates that employee contributions at the rate of 0.05% of active payroll for Old Plan members of the Employees' Retirement System, and 0.02% of active payroll for New Plan members of the Employees' Retirement System, members of the Legislative Retirement System and members of the Judicial Retirement System are sufficient to support the pre-retirement benefits of the Plan. No employer contribution is required for the fiscal year ending June 30, 2017 for pre-retirement benefits. \nThe funding method used for this valuation is the unit credit actuarial cost method with projected benefits. Gains and losses are reflected in the unfunded accrued liability. The actuarial assumptions used are in the aggregate reasonably related to the experience under the Plan and to reasonable expectations of anticipated experience under the Plan. In our opinion, the Plan is operating on an actuarially sound basis and the sufficiency of the funds to provide the benefits called for by the Plan may be safely anticipated. \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the Plan. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \n \nEdward A. Macdonald, ASA, FCA MAAA President \n \nSincerely yours, \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n69 \n \nCathy Turcot Principal and Managing Director \n \n Actuarial \n \nSEAD Post-Retirement \nApril 16, 2015 \nBoard of Trustees Employees' Retirement System of Georgia Two Northside 75, Suite 300 Atlanta, GA 30318-7701 \nAttention: Mr. James Potvin, Executive Director \nMembers of the Board: \nChapters 47-2 and 47-19 of the Code of Georgia which govern the operation of the Georgia Employees' Group Term Life Insurance Plan provide that the actuary shall make periodic valuations of the contingent assets and liabilities of the Insurance Plan on the basis of regular interest and the tables last adopted by the Board of Trustees. In this report, we have determined liabilities for life insurance benefits payable upon death after retirement (PostRetirement). \nIn accordance with GASB 43 and 45, we have determined the liabilities for life insurance benefits payable upon death after retirement. We have submitted the report giving the results of the valuation of the Plan prepared as of June 30, 2014. The report indicates, for post-retirement benefits, there is no employer annual required contribution for the fiscal year ending June 30, 2017. \nThe funding method used for this valuation is the unit credit actuarial cost method with projected benefits. Gains and losses are reflected in the unfunded accrued liability. The actuarial assumptions used are in the aggregate reasonably related to the experience under the Plan and to reasonable expectations of anticipated experience under the Plan. In our opinion, the Plan is operating on an actuarially sound basis and the sufficiency of the funds to provide the benefits called for by the Plan may be safely anticipated assuming future annual required contributions (ARC) are contributed when due. \n \n3550 Busbee Pkwy, Suite 250 Kennesaw, GA 30144 Phone (678) 388-1700  Fax (678) 388-1730 www.CavMacConsulting.com \nThis is to certify that the independent consulting actuary is a member of the American Academy of Actuaries and has experience in performing valuations for public retirement systems, that the valuation was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial procedures, based on the current provisions of the retirement system and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the Plan. \nFuture actuarial results may differ significantly from the current results presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein. \n \nEdward A. Macdonald, ASA, FCA MAAA President \n \nSincerely yours, \nEdward J. Koebel, EA, FCA, MAAA Principal and Consulting Actuary \n70 \n \nCathy Turcot Principal and Managing Director \n \n Actuarial \nSummary of Plan Provisions \nERS  Please see Notes to Financial Statements, (2)(a), pages 23-24. PSERS  Please see Notes to Financial Statements, (2)(b), page 24. LRS  Please see Notes to Financial Statements, (2)(c), pages 24-25. GJRS  Please see Notes to Financial Statements, (2)(d), pages 25-26. GMPF  Please see Notes to Financial Statements, (2)(e), page 26. SEAD-Active  Please see Notes to Financial Statements, (2)(f), pages 26-27. SEAD-OPEB  Please see Notes to Financial Statements, (2)(g), page 27. The following Boards are responsible for establishing and maintaining the funding policies of the various defined benefit systems administered by ERSGA:  Board of Trustees of the Employees' Retirement System: ERS, LRS, and GMPF  Board of Trustees of the Public School Employees Retirement System: PSERS  Board of Trustees of the Georgia Judicial Retirement System: GJRS  Board of Directors of the State Employees Assurance Department: SEAD-Active and SEAD-OPEB ERS, PSERS, LRS, GJRS, and GMPF are all subject to the provisions of GASB Statement No. 67 (GASB 67); SEAD-Active and SEAD-OPEB are not. All of the systems covered under GASB 67 use the Entry Age Normal actuarial cost method for both funding and financial reporting purposes. This continues a long-standing practice for all of those systems and provides a point of consistency between the funding provisions and the new GASB 67 requirements. For all of the systems covered under GASB 67, the GASB 67 reports prepared as of June 30, 2015 were largely based on the data, assumptions, and results of the annual funding valuations as of June 30, 2014 (detailed in reports dated April 16, 2015). The Total Pension Liability (TPL) for each system, determined using the Entry Age Normal method, was then rolled forward to the June 30, 2015 measurement date. The Net Pension Liability for each system is equal to the rolled forward TPL less the market value of assets as of June 30, 2015. For the funding valuations as of June 30, 2014, the Actuarial Value of Assets is calculated using a five-year smoothing methodology, whereby excesses and shortfalls of actual investment income over or under the expected investment return will be recognized over the succeeding five-year periods. For the funding valuations, each system covered under GASB 67 utilizes a 7.5% assumed rate of return and a 7.5% discount rate for the calculation of the respective systems' liabilities. The Single Equivalent Interest Rate required under GASB 67 has also been determined to be 7.5% by the systems'actuaries. \n71 \n \n Actuarial \nThe laws governing the Employees' Retirement System and the plans it administers require an actuary to perform an annual valuation of the soundness of the systems. In addition, the actuary must perform at least once every five years an actuarial investigation of the mortality, service, and compensation experience of the members and beneficiaries of the System. The latest valuation was performed as of June 30, 2014 based on actuarial assumptions approved by the Board during the last experience study on December 16, 2010. \nThe more pertinent facts and significant assumptions underlying the computations included in the June 30, 2014 reports are as follows: \n \nSummary of Actuarial Assumptions \n \nValuation Date Actuarial Cost Method \nAmortization Method \nAmortization Period \n \nERS June 30, 2014 \nEntry age \nLevel dollar, closed 22.6 years \n \nPSERS June 30, 2014 \nEntry age \nLevel dollar, closed 23.9 years \n \nGJRS June 30, 2014 \nEntry age \nLevel percent of pay, closed 19.5 years \n \nLRS June 30, 2014 \nEntry age \nLevel dollar, closed Infinite \n \nGMPF June 30, 2014 \nEntry age \nLevel dollar, closed 19.0 years \n \nActuarial Asset Valuation Method \nInvestment Rate of Return Inflation Rate Projected Salary Increases COLA \n \nThe actuarial value of assets was based on the total fair value income of investments, with the excess or shortfall of actual investment income over or under the expected investment return smoothed over 5 years. One-fifth of the excess or shortfall is recognized each year for five years. \n \n7.50% 3.00% 5.45-9.25% None \n \n7.50% 3.00% n/a 1.50% Semi-annually \n \n7.50% 3.00% 6.00% None \n \n7.50% 3.00% n/a 3.0% Annually \n \n7.50% 3.00% n/a None \n \nValuation Date Actuarial Cost Method \nAmortization Method \nAmortization Period \nActuarial Asset Valuation Method \nInvestment Rate of Return Inflation Rate Projected Salary Increases \nERS GJRS LRS COLA \n \nSEAD (Active \u0026 OPEB) \nJune 30, 2014 Projected unit credit \nLevel dollar, closed \nInfinite \nMarket Value of Assets \n7.50% 3.00% \n5.45-9.25% 6.00% 0.00 n/a \n \n72 \n \n Actuarial \nSummary of Actuarial Assumptions \n \nRates of Withdrawal Prior to Retirement (Withdrawal, Death, Disability) \n \nERS \n \nRepresentative values of the assumed annual rates of separation other than retirement for non-law enforcement officers are as follows. Special rates of separation apply to law enforcement officers. \n \nAnnual Rates of Death \n \nAnnual Rates of Disability \n \nAge \n \nMen Women Men Women \n \n20 \n \n.035 % .019 % .05 % \n \n.02 % \n \n25 \n \n.038 \n \n.021 \n \n.05 \n \n.02 \n \n30 \n \n.044 \n \n.026 \n \n.05 \n \n.02 \n \n35 \n \n.077 \n \n.048 \n \n.05 \n \n.02 \n \n40 \n \n.108 \n \n.071 \n \n.25 \n \n.10 \n \n45 \n \n.151 \n \n.112 \n \n.50 \n \n.25 \n \n50 \n \n.214 \n \n.168 \n \n.75 \n \n.50 \n \n55 \n \n.362 \n \n.272 \n \n1.10 \n \n.82 \n \n60 \n \n.675 \n \n.506 \n \n-- \n \n-- \n \n65 1.274 \n \n.971 \n \n-- \n \n-- \n \n69 1.980 \n \n1.486 \n \n-- \n \n-- \n \nAnnual Rates of Withdrawal Years of Service \n \n0-4 \n \n5-9 \n \n10 \u0026 over \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \n20 \n \n31.00 % 31.00 % \n \n--% \n \n--% \n \n--% \n \n--% \n \n25 \n \n26.00 \n \n24.00 \n \n17.00 \n \n19.00 \n \n-- \n \n-- \n \n30 \n \n22.50 \n \n21.00 \n \n12.00 \n \n13.00 \n \n7.50 \n \n7.75 \n \n35 \n \n21.00 \n \n19.50 \n \n10.00 \n \n10.50 \n \n7.00 \n \n6.75 \n \n40 \n \n19.00 \n \n17.50 \n \n9.50 \n \n9.00 \n \n5.00 \n \n4.50 \n \n45 \n \n18.00 \n \n15.50 \n \n9.00 \n \n8.00 \n \n3.75 \n \n3.50 \n \n50 \n \n15.50 \n \n15.00 \n \n7.00 \n \n7.00 \n \n3.75 \n \n3.50 \n \n55 \n \n13.00 \n \n12.50 \n \n6.50 \n \n6.50 \n \n4.00 \n \n4.00 \n \n60 \n \n15.00 \n \n12.50 \n \n7.00 \n \n6.50 \n \n-- \n \n-- \n \n65 \n \n15.00 \n \n17.00 \n \n9.50 \n \n10.00 \n \n-- \n \n-- \n \n73 \n \n PSERS \n \nActuarial \n \nAnnual Rates of Death \n \nAnnual Rate of Disability \n \nAge \n \nMen \n \nWomen \n \nBoth \n \n20 \n \n.036 % .019 % \n \n--% \n \n25 \n \n.038 \n \n.021 \n \n-- \n \n30 \n \n.050 \n \n.026 \n \n-- \n \n35 \n \n.084 \n \n.048 \n \n-- \n \n40 \n \n.114 \n \n.071 \n \n.01 \n \n45 \n \n.162 \n \n.112 \n \n.04 \n \n50 \n \n.245 \n \n.168 \n \n.09 \n \n55 \n \n.420 \n \n.272 \n \n.23 \n \n60 \n \n.778 \n \n.506 \n \n.35 \n \n65 \n \n1.441 \n \n.971 \n \n-- \n \nAnnual Rates of Withdrawal Years of Service \n \n0-4 \n \n5-9 \n \n10 \u0026 over \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \n20 \n \n35.00 % 34.00 % \n \n--% \n \n--% \n \n--% \n \n--% \n \n25 \n \n30.00 \n \n29.00 \n \n17.00 \n \n19.00 \n \n-- \n \n-- \n \n30 \n \n27.00 \n \n24.00 \n \n16.00 \n \n15.00 \n \n14.00 \n \n11.00 \n \n35 \n \n24.00 \n \n20.00 \n \n14.00 \n \n13.00 \n \n9.00 \n \n10.00 \n \n40 \n \n21.00 \n \n17.00 \n \n12.00 \n \n12.00 \n \n7.00 \n \n8.00 \n \n45 \n \n20.00 \n \n16.00 \n \n11.00 \n \n10.00 \n \n6.50 \n \n7.00 \n \n50 \n \n18.00 \n \n14.00 \n \n11.00 \n \n9.00 \n \n6.50 \n \n6.50 \n \n55 \n \n15.00 \n \n12.00 \n \n9.00 \n \n8.00 \n \n6.00 \n \n6.00 \n \n60 \n \n13.00 \n \n11.00 \n \n9.00 \n \n7.00 \n \n-- \n \n-- \n \n74 \n \n Actuarial \nGJRS \n \nWithdrawal \n \nAnnual Rates of Death \n \nDisability \n \nAge \n \nBoth \n \nMen \n \nWomen \n \nBoth \n \n20 \n \n8.0 % \n \n.035 % \n \n.019 % \n \n.05 % \n \n25 \n \n8.0 \n \n.038 \n \n.021 \n \n.05 \n \n30 \n \n8.0 \n \n.044 \n \n.026 \n \n.10 \n \n35 \n \n8.0 \n \n.077 \n \n.048 \n \n.15 \n \n40 \n \n8.0 \n \n.108 \n \n.071 \n \n.20 \n \n45 \n \n4.0 \n \n.151 \n \n.112 \n \n.35 \n \n50 \n \n3.0 \n \n.214 \n \n.168 \n \n.50 \n \n55 \n \n3.0 \n \n.362 \n \n.272 \n \n.90 \n \n60 \n \n3.0 \n \n.675 \n \n.506 \n \n1.45 \n \n65 \n \n3.0 \n \n1.274 \n \n.971 \n \n2.35 \n \nLRS \n \nWithdrawal \n \nAge \n \nBoth \n \nAnnual Rates of \n \nDeath \n \nMen \n \nWomen \n \nDisability Both \n \n20 \n \n6.0 % \n \n.035 % \n \n.019 % \n \n.1 % \n \n25 \n \n6.0 \n \n.038 \n \n.021 \n \n.1 \n \n30 \n \n6.0 \n \n.044 \n \n.026 \n \n.2 \n \n35 \n \n6.0 \n \n.077 \n \n.048 \n \n.3 \n \n40 \n \n6.0 \n \n.108 \n \n.071 \n \n.4 \n \n45 \n \n7.5 \n \n.151 \n \n.112 \n \n.7 \n \n50 \n \n8.5 \n \n.214 \n \n.168 \n \n1.0 \n \n55 \n \n10.0 \n \n.362 \n \n.272 \n \n1.8 \n \n60 \n \n10.0 \n \n.675 \n \n.506 \n \n2.9 \n \n65 \n \n10.0 \n \n1.274 \n \n.971 \n \n-- \n \nGMPF \n \nRates of Withdrawal from Active Service \n \nService \n \nRates \n \n10 or less \n \n17.5 % \n \n11-13 \n \n15.0 \n \n14-19 \n \n9.5 \n \n20 or more \n \n14.5 \n \nAge \n \nRates of Death \n \nMen \n \nWomen \n \n25 \n \n.038 % \n \n.021 % \n \n30 \n \n.044 \n \n.026 \n \n35 \n \n.077 \n \n.048 \n \n40 \n \n.108 \n \n.071 \n \n45 \n \n.151 \n \n.112 \n \n50 \n \n.214 \n \n.168 \n \n55 \n \n.362 \n \n.272 \n \n60 \n \n.675 \n \n.506 \n \n75 \n \n Actuarial \nSEAD-Active and SEAD-OPEB \nAge 20 25 30 35 40 45 50 55 60 65 69 \n \nAll Groups Annual Rates of Death \n \nMen \n \nWomen \n \nERS \n \nAnnual Rates of Disability \n \nMen \n \nWomen \n \n.035 % .019 % .05 % .02 % \n \n.038 \n \n.021 \n \n.05 \n \n.02 \n \n.044 \n \n.026 \n \n.05 \n \n.02 \n \n.077 \n \n.048 \n \n.05 \n \n.02 \n \n.108 \n \n.071 \n \n.25 \n \n.10 \n \n.151 \n \n.112 \n \n.50 \n \n.25 \n \n.214 \n \n.168 \n \n.75 \n \n.50 \n \n.362 \n \n.272 \n \n1.10 \n \n.82 \n \n.675 \n \n.506 \n \n-- \n \n-- \n \n1.274 \n \n.971 \n \n-- \n \n-- \n \n1.980 \n \n1.486 \n \n-- \n \n-- \n \nLRS Annual Rates of \nDisability Both .1 % .1 .2 .3 .4 .7 1.0 1.8 2.9 -- -- \n \nGJRS Annual Rates of \nDisability Both \n.05 % .05 .10 .15 .20 .35 .50 .90 1.45 2.35 -- \n \nERS \n \nLRS \n \nGJRS \n \nAnnual Rates of Withdrawal Years of Service \n \nAnnual Rates of Withdrawal \n \nAnnual Rates of Withdrawal \n \n0-4 \n \n5-9 \n \n10 \u0026 over \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nBoth \n \nBoth \n \n20 \n \n31.00 % 31.00 % \n \n--% \n \n--% \n \n--% \n \n--% \n \n6.00 % \n \n8.00 % \n \n25 \n \n26.00 \n \n24.00 \n \n17.00 \n \n19.00 \n \n-- \n \n-- \n \n6.00 \n \n8.00 \n \n30 \n \n22.50 \n \n21.00 \n \n12.00 \n \n13.00 \n \n7.50 \n \n7.75 \n \n6.00 \n \n8.00 \n \n35 \n \n21.00 \n \n19.50 \n \n10.00 \n \n10.50 \n \n7.00 \n \n6.75 \n \n6.00 \n \n8.00 \n \n40 \n \n19.00 \n \n17.50 \n \n9.50 \n \n9.00 \n \n5.00 \n \n4.50 \n \n6.00 \n \n8.00 \n \n45 \n \n18.00 \n \n15.50 \n \n9.00 \n \n8.00 \n \n3.75 \n \n3.50 \n \n7.50 \n \n4.00 \n \n50 \n \n15.50 \n \n15.00 \n \n7.00 \n \n7.00 \n \n3.75 \n \n3.50 \n \n8.50 \n \n3.00 \n \n55 \n \n13.00 \n \n12.50 \n \n6.50 \n \n6.50 \n \n4.00 \n \n4.00 \n \n10.00 \n \n3.00 \n \n60 \n \n15.00 \n \n12.50 \n \n7.00 \n \n6.50 \n \n-- \n \n-- \n \n10.00 \n \n3.00 \n \n65 \n \n15.00 \n \n17.00 \n \n9.50 \n \n10.00 \n \n-- \n \n-- \n \n10.00 \n \n3.00 \n \n76 \n \n Actuarial \nAnnual Rates of Retirement \nERS \n \nEarly Retirement \n \nAge \n \nMen \n \nWomen \n \n55 \n \n3.0 % \n \n4.0 % \n \n56 \n \n3.5 \n \n6.0 \n \n57 \n \n4.0 \n \n6.0 \n \n58 \n \n5.0 \n \n6.0 \n \n59 \n \n6.0 \n \n6.0 \n \n60 \n \n-- \n \n-- \n \n62 \n \n-- \n \n-- \n \n64 \n \n-- \n \n-- \n \n66 \n \n-- \n \n-- \n \n68 \n \n-- \n \n-- \n \n70 \n \n-- \n \n-- \n \n75 \n \n-- \n \n-- \n \nOld Plan \n \nAge 60 or 30 years \n \n34 years \n \nMen 11.5 % \n \nWomen 9.0 % \n \nMen 100.0 % \n \nWomen 100.0 % \n \n12.0 \n \n11.0 \n \n100.0 \n \n100.0 \n \n12.0 \n \n13.0 \n \n100.0 \n \n100.0 \n \n13.0 \n \n15.0 \n \n95.0 \n \n95.0 \n \n16.0 \n \n16.0 \n \n95.0 \n \n95.0 \n \n17.0 \n \n20.0 \n \n95.0 \n \n95.0 \n \n37.0 \n \n40.0 \n \n90.0 \n \n90.0 \n \n20.0 \n \n30.0 \n \n90.0 \n \n90.0 \n \n30.0 \n \n35.0 \n \n30.0 \n \n35.0 \n \n20.0 \n \n25.0 \n \n20.0 \n \n25.0 \n \n45.0 \n \n35.0 \n \n45.0 \n \n35.0 \n \n100.0 \n \n100.0 \n \n100.0 \n \n100.0 \n \nMore than 34 years \n \nMen 90.0 % \n \nWomen 90.0 % \n \n70.0 \n \n70.0 \n \n70.0 \n \n70.0 \n \n70.0 \n \n70.0 \n \n70.0 \n \n70.0 \n \n50.0 \n \n60.0 \n \n50.0 \n \n60.0 \n \n15.0 \n \n60.0 \n \n30.0 \n \n35.0 \n \n20.0 \n \n25.0 \n \n45.0 \n \n35.0 \n \n100.0 \n \n100.0 \n \nNew Plan and GSEPS \n \nEarly Retirement \n \nNormal Retirement* \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \n55 \n \n10.0 % \n \n8.0 % \n \n50.0 % \n \n40.0 % \n \n56 \n \n10.0 \n \n8.0 \n \n50.0 \n \n40.0 \n \n57 \n \n10.0 \n \n9.0 \n \n50.0 \n \n40.0 \n \n58 \n \n10.0 \n \n10.0 \n \n30.0 \n \n40.0 \n \n59 \n \n10.0 \n \n15.0 \n \n30.0 \n \n40.0 \n \n60 \n \n-- \n \n-- \n \n17.0 \n \n20.0 \n \n62 \n \n-- \n \n-- \n \n38.0 \n \n36.0 \n \n64 \n \n-- \n \n-- \n \n25.0 \n \n28.0 \n \n66 \n \n-- \n \n-- \n \n35.0 \n \n35.0 \n \n68 \n \n-- \n \n-- \n \n20.0 \n \n25.0 \n \n70 \n \n-- \n \n-- \n \n20.0 \n \n25.0 \n \n75 \n \n-- \n \n-- \n \n100.0 \n \n100.0 \n \n*An additional 10% of active New Plan and GSEPS members less than age 60 are expected to retire in the year in which they attain 30 years of service. \n \n77 \n \n PSERS GJRS LRS GMPF \n \nActuarial \nAge 60 61 62 63 64 65 66 67 \n \nAnnual Rate of Retirement 15 % 15 22 18 18 28 25 25 \n \nAge 68 69 70 71 72 73 74 75 \u0026 over \n \nAnnual Rate of Retirement 25 % 25 25 25 25 25 25 \n100 \n \nAge 60 61-64 65-66 67-69 70-74 75 \n \nAnnual Rate of Retirement 12 % 12 15 20 30 100 \n \nAge \n \nAnnual Rate of Retirment \n \nAge \n \nAnnual Rate of Retirement \n \n60 - 69 \n \n10 % \n \n73 \n \n70 \n \n35 \n \n74 \n \n25 % 40 \n \n71 \n \n15 \n \n75 \n \n100 \n \n72 \n \n15 \n \n-- \n \n-- \n \nAge 60 61 62 63 64 65 \u0026 over \n \nAnnual Rate of Retirement 65.0 % 65.0 65.0 65.0 65.0 100.0 \n \n78 \n \n Actuarial \nSEAD-Active and SEAD-OPEB ERS Members \n \nOld Plan \n \nEarly Retirement \n \nAge 60 or 30 years \n \n34 years \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \nMen \n \nWomen \n \n55 \n \n3.0 % \n \n4.0 % \n \n11.5 % \n \n9.0 % 100.0 % \n \n100.0 % \n \n56 \n \n3.5 \n \n6.0 \n \n12.0 \n \n11.0 \n \n100.0 \n \n100.0 \n \n57 \n \n4.0 \n \n6.0 \n \n12.0 \n \n13.0 \n \n100.0 \n \n100.0 \n \n58 \n \n5.0 \n \n6.0 \n \n13.0 \n \n15.0 \n \n95.0 \n \n95.0 \n \n59 \n \n6.0 \n \n6.0 \n \n16.0 \n \n16.0 \n \n95.0 \n \n95.0 \n \n60 \n \n-- \n \n-- \n \n17.0 \n \n20.0 \n \n95.0 \n \n95.0 \n \n62 \n \n-- \n \n-- \n \n37.0 \n \n40.0 \n \n90.0 \n \n90.0 \n \n64 \n \n-- \n \n-- \n \n20.0 \n \n30.0 \n \n90.0 \n \n90.0 \n \n66 \n \n-- \n \n-- \n \n30.0 \n \n35.0 \n \n30.0 \n \n35.0 \n \n68 \n \n-- \n \n-- \n \n20.0 \n \n25.0 \n \n20.0 \n \n25.0 \n \n70 \n \n-- \n \n-- \n \n45.0 \n \n35.0 \n \n45.0 \n \n35.0 \n \nMore than 34 years \n \nMen \n \nWomen \n \n90.0 % \n \n90.0 % \n \n70.0 \n \n70.0 \n \n70.0 \n \n70.0 \n \n70.0 \n \n70.0 \n \n70.0 \n \n70.0 \n \n50.0 \n \n60.0 \n \n50.0 \n \n60.0 \n \n15.0 \n \n60.0 \n \n30.0 \n \n35.0 \n \n20.0 \n \n25.0 \n \n45.0 \n \n35.0 \n \nNew Plan and GSEPS \n \nEarly Retirement \n \nNormal Retirement* \n \nAge \n \nMen \n \nWomen \n \nMen \n \nWomen \n \n55 \n \n10.0 % \n \n8.0 % \n \n50.0 % \n \n40.0 % \n \n56 \n \n10.0 \n \n8.0 \n \n50.0 \n \n40.0 \n \n57 \n \n10.0 \n \n9.0 \n \n50.0 \n \n40.0 \n \n58 \n \n10.0 \n \n10.0 \n \n30.0 \n \n40.0 \n \n59 \n \n10.0 \n \n15.0 \n \n30.0 \n \n40.0 \n \n60 \n \n-- \n \n-- \n \n17.0 \n \n20.0 \n \n62 \n \n-- \n \n-- \n \n38.0 \n \n36.0 \n \n64 \n \n-- \n \n-- \n \n25.0 \n \n28.0 \n \n66 \n \n-- \n \n-- \n \n35.0 \n \n35.0 \n \n68 \n \n-- \n \n-- \n \n20.0 \n \n25.0 \n \n70 \n \n-- \n \n-- \n \n20.0 \n \n25.0 \n \n*An additional 10% of active New Plan and GSEPS members less than age 65 are expected to retire in the year in which they attain 30 years of service. \n \nLRS Members \n \nAge \n \nAnnual Rate of Retirement \n \nAge \n \nAnnual Rate of Retirement \n \n60 - 69 \n \n10 % \n \n73 \n \n70 \n \n35 \n \n74 \n \n25 % 40 \n \n71 \n \n15 \n \n75 \n \n100 \n \n72 \n \n15 \n \n-- \n \n-- \n \n79 \n \n Actuarial \nSEAD-Active and SEAD-OPEB GJRS Members \n \nAge 60-64 65-66 67-69 70-74 75 \n \nAnnual Rates of Retirement 12 % 15 20 30 100 \n \n80 \n \n Actuarial \nAnnual Rates of Death After Retirement \nFor all plans except PSERS, the RP-2000 Combined Mortality Table is used for the period after retirement and for dependent beneficiaries. The RP-2000 Disabled Mortality Table set back eleven years for males is used for the period after disability retirement. For PSERS, the RP-2000 Combined Table set forward one year for males is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table set back two years for males and set forward one year for females is used for the period after disability retirement. For all plans, there is a margin for future mortality improvement in the tables used by the Systems. \n \nERS \n \nAge \n \nMen \n \nWomen \n \nAge \n \nMen \n \nWomen \n \n40 \n \n.108 % \n \n.071 % \n \n65 \n \n1.274 % \n \n.971 % \n \n45 \n \n.151 \n \n.112 \n \n70 \n \n2.221 \n \n1.674 \n \n50 \n \n.214 \n \n.168 \n \n75 \n \n3.783 \n \n2.811 \n \n55 \n \n.362 \n \n.272 \n \n80 \n \n6.437 \n \n4.588 \n \n60 \n \n.675 \n \n.506 \n \n85 \n \n11.076 \n \n7.745 \n \nPSERS \n \nAge \n \nMen \n \nWomen \n \nAge \n \nMen \n \nWomen \n \n40 \n \n.114 % \n \n.071 % \n \n65 \n \n1.441 % \n \n.971 % \n \n45 \n \n.162 \n \n.112 \n \n70 \n \n2.457 \n \n1.674 \n \n50 \n \n.245 \n \n.168 \n \n75 \n \n4.217 \n \n2.811 \n \n55 \n \n.420 \n \n.272 \n \n80 \n \n7.204 \n \n4.588 \n \n60 \n \n.768 \n \n.506 \n \n85 \n \n12.280 \n \n7.745 \n \nGJRS \n \nAge \n \nMen \n \nWomen \n \nAge \n \nMen \n \nWomen \n \n40 \n \n.108 % \n \n.071 % \n \n65 \n \n1.274 % \n \n.971 % \n \n45 \n \n.151 \n \n.112 \n \n70 \n \n2.221 \n \n1.674 \n \n50 \n \n.214 \n \n.168 \n \n75 \n \n3.783 \n \n2.811 \n \n55 \n \n.362 \n \n.272 \n \n80 \n \n6.437 \n \n4.588 \n \n60 \n \n.675 \n \n.506 \n \n85 \n \n11.076 \n \n7.745 \n \nLRS \n \nAge \n \nMen \n \nWomen \n \nAge \n \nMen \n \nWomen \n \n40 \n \n.108 % \n \n.071 % \n \n65 \n \n1.274 % \n \n.971 % \n \n45 \n \n.151 \n \n.112 \n \n70 \n \n2.221 \n \n1.674 \n \n50 \n \n.214 \n \n.168 \n \n75 \n \n3.783 \n \n2.811 \n \n55 \n \n.362 \n \n.272 \n \n80 \n \n6.437 \n \n4.588 \n \n60 \n \n.675 \n \n.506 \n \n85 \n \n11.076 \n \n7.745 \n \n81 \n \n Actuarial \nGMPF Age \n40 45 50 55 60 \nSEAD-OPEB Age \n40 45 50 55 60 \n \nMen .108 % .151 .214 .362 .675 \nMen .108 % .151 .214 .362 .675 \n \nWomen .071 % .112 .168 .272 .506 \nWomen .071 % .112 .168 .272 .506 \n \nAge \n \nMen \n \nWomen \n \n65 \n \n1.274 % \n \n.971 % \n \n70 \n \n2.221 \n \n1.674 \n \n75 \n \n3.783 \n \n2.811 \n \n80 \n \n6.437 \n \n4.588 \n \n85 \n \n11.076 \n \n7.745 \n \nAge \n \nMen \n \nWomen \n \n65 \n \n1.274 % \n \n.971 % \n \n70 \n \n2.221 \n \n1.674 \n \n75 \n \n3.783 \n \n2.811 \n \n80 \n \n6.437 \n \n4.588 \n \n85 \n \n11.076 \n \n7.745 \n \n82 \n \n Actuarial \nActive Members \nERS \nYear 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 \n \nActive Members \n72,716 74,089 73,985 75,293 71,272 68,566 66,081 63,942 61,550 60,486 \n \nAnnual Payroll (in thousands) \n \n$ \n \n2,514,430 \n \n2,630,167 \n \n2,680,972 \n \n2,809,199 \n \n2,674,155 \n \n2,571,042 \n \n2,486,780 \n \n2,414,884 \n \n2,335,773 \n \n2,315,625 \n \nAverage Pay \n \n$ \n \n34,579 \n \n35,500 \n \n36,237 \n \n37,310 \n \n37,520 \n \n37,497 \n \n37,632 \n \n37,767 \n \n37,949 \n \n38,284 \n \nChange \n2.0 % 2.7 2.1 3.0 0.6 (0.1) 0.4 0.4 0.5 0.9 \n \nPSERS PSERS is not a compensation based plan. \n \nYear \n2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 \n \nActive Members \n36,704 37,587 39,086 40,121 40,581 39,962 39,249 38,654 37,361 36,096 \n \nGJRS \n \nYear \n2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 \n \nActive Members \n468 478 480 482 502 495 507 503 506 513 \n \nAnnual Payroll (in thousands) Average Pay \n \n$ \n \n42,916 $ 91,701 \n \n45,308 \n \n94,787 \n \n48,621 \n \n101,294 \n \n51,102 \n \n106,021 \n \n52,083 \n \n103,751 \n \n51,293 \n \n103,622 \n \n52,331 \n \n103,216 \n \n51,898 \n \n103,177 \n \n52,807 \n \n104,362 \n \n53,628 \n \n104,539 \n \nChange \n1.1 % 3.4 6.9 4.7 (2.1) (0.1) (0.4) (0.0) 1.1 0.2 \n \nLRS LRS is not a compensation based plan. \n \nYear \n2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 \n \nActive Members \n217 218 218 218 218 216 218 220 223 222 \n \n83 \n \n Actuarial \nGMPF \nGMPF is not a compensation based plan. \n \nYear \n2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 \n \nActive Members \n8,870 10,320 12,017 11,623 12,019 13,032 13,776 13,526 13,573 13,469 \n \nSEAD-Active and SEAD-OPEB \nSEAD-Active and SEAD-OPEB began in 2007. \n \nYear \n2008 2009 2010 2011 2012 2013 2014 \n \nActive Members \n75,859 69,745 62,305 55,516 49,261 43,512 39,101 \n \nNote: Payroll data for FY14 may not equal that wich is presented in the Financial section in the Schdules of Employers'and Nonemployers'Contributions on pages 43-44. Valuation data at that time was a snapshot of the valuation date, annualized for new hires, but does not include those who terminated during the year. \n \n84 \n \n Actuarial \nMember and Employer Contribution Rates \nERS \n \nYear \n2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nMember \n1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% \n \n* Old Plan Rate includes an employer pick-up of employee contributions. ** GSEPS Plan began on January 1, 2009 \n \nOld Plan* \n10.41% 10.41% 10.41% 10.41% 10.41% 10.41% 11.63% 14.90% 18.46% 21.96% \n \nEmployer Rates \nNew Plan \n10.41% 10.41% 10.41% 10.41% 10.41% 10.41% 11.63% 14.90% 18.46% 21.96% \n \nGSEPS** \nn/a n/a n/a 6.54% 6.54% 6.54% 7.42% 11.54% 15.18% 18.87% \n \nPSERS \n \nYear \n2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nPre 7/1/12 Member \n$ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year $ 36 per year \n \nPost 7/1/12 Member \n$ 90 per year $ 90 per year $ 90 per year \n \nEmployer \n \n$ \n \n3,638,000 \n \n6,484,000 \n \n2,866,000 \n \n5,680,000 \n \n5,529,000 \n \n7,509,000 \n \n15,884,000 \n \n24,829,000 \n \n27,160,000 \n \n28,461,000 \n \nGJRS LRS \n \nYear \n2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nMember \n7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% \n \nEmployer \n3.85% 3.85% 3.85% 3.85% 3.85% 3.85% 3.90% 3.90% 4.23% 6.98% \n \nYear \n2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nMember \n8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% \n \nEmployer \n \n$ \n \n54,000 \n \n62,000 \n \n73,000 \n \n71,000 \n \n75,000 \n \n75,000 \n \n75,000 \n \n128,000 \n \n45,000 \n \n0 \n \n85 \n \n Actuarial \nGMPF \n \nSEAD-Active* \n \nYear \n2008 2009 2010 2011 2012 2013 2014 2015 \n \nSEAD-OPEB* \n \nYear \n2008 2009 2010 2011 2012 2013 2014 2015 \n \n*SEAD-Active and SEAD-OPEB began in 2007. \n \nYear \n2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nMember \nn/a n/a n/a n/a n/a n/a n/a n/a n/a n/a \n \nEmployer \n \n$ \n \n891,000 \n \n1,005,000 \n \n1,103,000 \n \n1,323,000 \n \n1,434,000 \n \n1,282,000 \n \n1,521,000 \n \n1,703,000 \n \n1,892,000 \n \n1,893,369 \n \nMember - Old Plan \n0.05% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05% \n \nMember - New Plan, LRS, GJRS \n0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% \n \nEmployer \n0% 0% 0% 0% 0% 0% 0% 0% \n \nMember - Old Plan \n0.45% 0.45% 0.45% 0.45% 0.45% 0.45% 0.45% 0.45% \n \nMember - New Plan, LRS, GJRS \n0.23% 0.23% 0.23% 0.23% 0.23% 0.23% 0.23% 0.23% \n \nEmployer \n0% 0% 0% 0% 0.61% 0.27% 0% 0% \n \n86 \n \n Actuarial \nSchedules of Funding Progress - Defined Benefit Pension Plans \n(In thousands) \n87 \n \nEmployees' Retirement System Public School Employees Retirement System Legislative Retirement System Georgia Judicial Retirement System \n \nActuarial valuation \ndate \n6/30/2005 6/30/2006 6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 \n6/30/2005 6/30/2006 6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 \n6/30/2005 6/30/2006 6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 \n6/30/2005 6/30/2006 6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 \n \nActuarial value of plan assets \n(a) \n$ 13,134,472 13,461,132 13,843,689 14,017,346 13,613,606 13,046,193 12,667,557 12,260,595 12,129,804 12,376,120 \n753,767 766,277 785,460 791,855 769,618 737,406 719,601 710,915 727,268 765,450 \n28,462 29,172 30,049 30,706 30,303 29,581 29,278 28,990 29,481 30,538 \n264,924 279,564 297,090 313,315 317,624 320,050 327,483 335,225 351,889 373,560 \n \nActuarial accrued liablility (AAL) entry age (b) \n13,512,773 14,242,845 14,885,179 15,680,857 15,878,022 16,295,352 16,656,905 16,777,922 16,982,449 16,991,963 \n671,040 691,651 746,078 770,950 823,232 875,396 885,927 895,324 910,256 924,365 \n23,531 23,407 24,357 24,454 23,523 25,003 25,245 24,966 24,904 24,913 \n213,060 229,837 249,278 268,516 282,474 281,496 290,486 308,862 335,792 343,428 \n \nUnfunded AAL/ (funded excess) \n(b-a) \n378,301 781,713 1,041,490 1,663,511 2,264,416 3,249,159 3,989,348 4,517,327 4,852,645 4,615,843 \n(82,727) (74,626) (39,382) (20,905) \n53,614 137,990 166,326 184,409 182,988 158,915 \n(4,931) (5,765) (5,692) (6,252) (6,780) (4,578) (4,033) (4,024) (4,577) (5,624) \n(51,864) (49,727) (47,812) (44,799) (35,150) (38,554) (36,997) (26,363) (16,097) (30,132) \n \nFunded ratio (a/b) \n97.2 % 94.5 93.0 89.4 85.7 80.1 76.0 73.1 71.4 72.8 \n112.3 110.8 105.3 102.7 93.5 84.2 81.2 79.4 79.9 82.8 \n121.0 124.6 123.4 125.6 128.8 118.3 116.0 116.1 118.4 122.6 \n124.3 121.6 119.2 116.7 112.4 113.7 112.7 108.5 104.8 108.8 \n \nAnnual covered payroll \n(c) \n$ 2,514,430 2,630,167 2,680,972 2,809,199 2,674,155 2,571,042 2,486,780 2,414,884 2,335,773 2,315,625 \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \n3,586 3,602 3,688 3,778 3,780 3,745 3,780 3,815 3,867 3,850 \n42,916 45,308 48,621 51,102 52,083 51,293 52,331 51,898 52,807 53,628 \n \nUnfunded AAL/ (funded excess) as percentage of covered payroll \n[(b-a)/c] \n15.0 % 29.7 38.8 59.2 84.7 126.4 160.4 187.1 207.8 199.3 \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \n(137.5) (160.0) (154.3) (165.5) (179.4) (122.2) (106.7) (105.5) (118.4) (146.1) \n(120.9) (109.8) \n(98.3) (87.7) (67.5) (75.2) (70.7) (50.8) (30.5) (56.2) \n \n Actuarial \nSchedules of Funding Progress - Defined Benefit Pension Plans \n(In thousands) \n88 \n \nGeorgia Military Pension Fund  \n \nActuarial valuation \ndate \n6/30/2005 6/30/2006 6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 \n \nActuarial value of plan assets \n(a) \n \n$ \n \n2,176 \n \n3,100 \n \n4,165 \n \n5,269 \n \n6,413 \n \n7,558 \n \n8,702 \n \n10,087 \n \n12,131 \n \n14,264 \n \nActuarial accrued liability (AAL) entry-age \n(b) \n14,454 17,625 19,887 19,124 21,021 23,773 26,767 28,231 30,056 31,815 \n \nUnfunded AAL/ (funded excess) \n(b-a) \n12,278 14,525 15,722 13,855 14,608 16,215 18,065 18,144 17,925 17,551 \n \nFunded ratio (a/b) \n15.1 % 17.6 20.9 27.6 30.5 31.8 32.5 35.7 40.4 44.8 \n \nThis data, except for annual covered payroll, was provided by the System's actuary. \n No statistics regarding covered payroll are available. Contributions are not based on members'salaries, but are simply $4.00 per month, per member for nine months each fiscal year if hired prior to July 1,2012 and $10 per month, per member for nine months if hired after July 1, 2012.  No statistics regarding covered payroll are available. Active and inactive plan member information is maintained by the Georgia Department of Defense. \n \nAnnual covered payroll \n(c) \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \n \nUnfunded AAL/ (funded excess) as percentage of covered payroll \n[(b-a)/c] \nN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A \n \nSee accompanying notes to required supplementary schedules and accompanying independent auditors'report. \nNote: Payroll data for FY14 may not equal that wich is presented in the Financial section in the Schdules of Employers'and Nonemployers'Contributions on pages 43-44. Valuation data at that time was a snapshot of the valuation date, annualized for new hires, but does not include those who terminated during the year. \n \n Actuarial \nSchedule of Retirees Added to and Removed from Rolls \nERS \n \nYear Ended \n2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 \n \nAdded to Rolls \n \nRemoved from Rolls \n \nRoll End of Year \n \nNumber \nn/a 2,338 2,410 2,422 2,444 2,665 2,797 2,956 3,664 2,440 \n \nAnnual Allowances (in thousands) \n \n$ \n \nn/a \n \n84,982 \n \n114,719 \n \n82,644 \n \n85,329 \n \n70,383 \n \n69,031 \n \n71,464 \n \n88,855 \n \n51,178 \n \nNumber \nn/a 854 1,075 1,017 1,055 1,051 1,170 1,305 1,176 1,059 \n \nAnnual Allowances (in thousands) \n \n$ \n \nn/a \n \n16,270 \n \n20,598 \n \n21,299 \n \n20,194 \n \n22,413 \n \n25,347 \n \n27,696 \n \n26,334 \n \n22,997 \n \nNumber \n31,355 32,839 34,174 35,579 36,968 38,582 40,209 41,860 44,348 45,729 \n \nAnnual Allowances (in thousands) \n \n$ \n \n773,445 \n \n842,157 \n \n936,278 \n \n997,623 \n \n1,062,758 \n \n1,110,728 \n \n1,154,412 \n \n1,198,180 \n \n1,260,701 \n \n1,288,882 \n \n% Increase in Annual Allowance \nn/a % 8.9 11.2 6.6 6.5 4.5 3.9 3.8 5.2 2.2 \n \nAverage Annual Allowances \n$ 24,667 25,645 27,397 28,040 28,748 28,789 28,710 28,624 28,427 28,185 \n \nPSERS \n \nYear Ended \n2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 \n \nAdded to Rolls \n \nRemoved from Rolls \n \nRoll End of Year \n \nNumber \nn/a 870 816 899 886 1,001 1,174 1,133 1,298 1,345 \n \nAnnual Allowances (in thousands) \n \nNumber \n \n$ \n \nn/a n/a \n \n4,835 531 \n \n4,749 637 \n \n4,514 605 \n \n5,290 575 \n \n4,494 642 \n \n3,168 731 \n \n3,192 684 \n \n3,803 650 \n \n3,749 647 \n \nAnnual Allowances (in thousands) \n \nNumber \n \n$ \n \nn/a 12,675 \n \n1,885 13,014 \n \n2,353 13,193 \n \n2,371 13,487 \n \n2,260 13,798 \n \n2,666 14,157 \n \n3,072 14,600 \n \n2,834 15,049 \n \n2,738 15,697 \n \n2,604 16,395 \n \nAnnual Allowances (in thousands) \n \n$ \n \n41,316 \n \n44,266 \n \n46,662 \n \n48,805 \n \n51,835 \n \n53,663 \n \n53,759 \n \n54,117 \n \n55,182 \n \n56,327 \n \n% Increase in Annual Allowance \nn/a % 7.1 5.4 4.6 6.2 3.5 0.2 0.7 2.0 2.1 \n \nAverage Annual Allowances \n$ 3,260 3,401 3,537 3,619 3,757 3,791 3,682 3,596 3,515 3,436 \n \nGJRS \n \nYear Ended \n2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 \n \nAdded to Rolls \n \nRemoved from Rolls \n \nRoll End of Year \n \nNumber \nn/a 5 13 14 29 16 15 22 42 23 \n \nAnnual Allowances (in thousands) \n \nNumber \n \n$ \n \nn/a n/a \n \n144 \n \n14 \n \n853 \n \n7 \n \n902 \n \n7 \n \n2,238 \n \n6 \n \n933 \n \n10 \n \n1,168 \n \n2 \n \n1,732 \n \n8 \n \n2,763 \n \n13 \n \n1,175 \n \n9 \n \nAnnual Allowances (in thousands) \n \nNumber \n \n$ \n \nn/a 174 \n \n687 165 \n \n297 171 \n \n410 178 \n \n191 201 \n \n508 207 \n \n105 220 \n \n405 234 \n \n629 263 \n \n326 277 \n \nAnnual Allowances (in thousands) \n \n$ \n \n9,460 \n \n8,917 \n \n9,473 \n \n9,965 \n \n12,012 \n \n12,437 \n \n13,500 \n \n14,827 \n \n16,961 \n \n17,810 \n \n% Increase in Annual Allowance \nn/a % (5.7) 6.2 5.2 20.5 3.5 8.5 9.8 14.4 5.0 \n \nAverage Annual Allowances \n$ 54,368 54,042 55,398 55,983 59,761 60,082 61,364 63,363 64,490 64,296 \n \n89 \n \n Actuarial \nLRS \n \nYear Ended \n2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 \n \nAdded to Rolls \n \nRemoved from Rolls \n \nRoll End of Year \n \nNumber \nn/a 13 17 13 10 10 18 10 32 6 \n \nAnnual Allowances (in thousands) \n \nNumber \n \n$ \n \nn/a n/a \n \n103 \n \n21 \n \n151 \n \n9 \n \n130 \n \n11 \n \n117 \n \n7 \n \n106 \n \n3 \n \n104 \n \n10 \n \n66 \n \n11 \n \n200 \n \n15 \n \n30 \n \n7 \n \nAnnual Allowances (in thousands) \n \nNumber \n \n$ \n \nn/a 224 \n \n165 216 \n \n74 224 \n \n100 226 \n \n54 229 \n \n36 236 \n \n86 244 \n \n82 243 \n \n140 260 \n \n61 259 \n \nAnnual Allowances (in thousands) \n \n$ \n \n1,594 \n \n1,532 \n \n1,609 \n \n1,639 \n \n1,702 \n \n1,772 \n \n1,790 \n \n1,774 \n \n1,834 \n \n1,803 \n \n% Increase in Annual Allowance \nn/a % (3.9) 5.0 1.9 3.8 4.1 1.0 (0.9) 3.4 (1.7) \n \nAverage Annual Allowances \n$ 7,116 7,093 7,183 7,252 7,432 7,508 7,336 7,300 7,054 6,961 \n \nGMPF \n \nYear Ended \n2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 \n \nAdded to Rolls \n \nRemoved from Rolls \n \nRoll End of Year \n \nNumber \nn/a 61 73 71 85 92 94 95 83 62 \n \nAnnual Allowances (in thousands) \n \nNumber \n \n$ \n \nn/a n/a \n \n69 \n \n1 \n \n83 \n \n1 \n \n76 \n \n2 \n \n91 \n \n3 \n \n100 \n \n1 \n \n101 \n \n3 \n \n106 \n \n3 \n \n87 \n \n5 \n \n68 \n \n5 \n \nAnnual Allowances (in thousands) \n \nNumber \n \n$ \n \nn/a 103 \n \n1 163 \n \n1 235 \n \n2 304 \n \n4 386 \n \n1 477 \n \n4 568 \n \n3 660 \n \n5 738 \n \n6 795 \n \nAnnual Allowances (in thousands) \n \n$ \n \n110 \n \n178 \n \n260 \n \n334 \n \n421 \n \n520 \n \n617 \n \n720 \n \n802 \n \n864 \n \n% Increase in Annual Allowance \nn/a % 61.8 46.1 28.5 26.0 23.5 18.7 16.7 11.4 7.7 \n \nAverage Annual Allowances \n$ 1,068 1,092 1,106 1,099 1,091 1,090 1,086 1,091 1,087 1,087 \n \nSEAD-Active and SEAD-OPEB are life insurance plans which do not have annuity payments. \n \n90 \n \n Actuarial \nAnalysis of Change in Unfunded Accrued Liability (UAL) \n91 \n \nERS \nInterest (7.50) added to previous UAL \nAccrued liability contribution \nExperience: Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Salary increases Method changes Amendments (COLAs) Assumption changes Lawsuit Programming modification Data changes Misc. changes \nTotal \nPSERS \nInterest (7.50) added to previous UAL \nAccrued liability contribution \nExperience: Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Salary increases Method changes Amendments No COLAs Assumption changes Lawsuit Data changes Allotment for expenses Misc. changes \nTotal \n \n2014 \n \n2013 \n \n2012 \n \n2011 \n \n2010 \n \n2009 \n \n2008 \n \n2007 \n \n2006 \n \n2005 \n \nAmount of Increase (Decrease) (in Millions) \n \n$ \n \n363.9 $ \n \n338.8 $ \n \n299.2 $ \n \n243.7 $ \n \n169.8 $ \n \n124.8 $ \n \n78.1 $ \n \n(321.7) \n \n(239.1) \n \n(147.7) \n \n(122.9) \n \n(89.4) \n \n(99.7) \n \n(86.3) \n \n(228.9) 60.4 45.5 9.3 \n(159.4) 0.0 0.0 0.0 0.0 0.0 (6.0) 0.1 \n \n253.7 20.6 \n103.7 14.1 (46.8) \n(128.3) 0.0 0.0 0.0 0.0 \n18.7 (0.1) \n \n396.3 15.5 93.8 12.1 (74.2) 0.0 \n(118.8) 0.0 0.0 \n26.3 12.9 12.6 \n \n$ \n \n(236.8) $ \n \n335.3 $ \n \n528.0 $ \n \n433.6 16.4 91.4 28.4 49.0 0.0 0.0 0.0 0.0 (28.7) 9.1 20.2 \n740.2 $ \n \n710.1 49.2 118.4 15.0 \n(259.2) 0.0 0.0 \n250.7 0.0 0.0 (2.4) \n22.5 \n984.7 $ \n \n609.1 65.4 \n107.3 16.7 \n(296.9) 0.0 \n(358.6) 0.0 \n75.9 0.0 \n270.5 86.4 \n600.9 $ \n \nAmount of Increase (Decrease) (in Thousands) \n \n129.3 51.3 \n103.0 22.9 (22.7) 0.0 \n188.8 0.0 0.0 0.0 0.0 \n157.6 \n622.0 $ \n \n58.6 $ \n(35.3) \n(59.5) 51.0 115.7 35.7 (33.2) \n0.0 5.9 0.0 0.0 0.0 0.0 120.9 \n259.8 $ \n \n28.4 $ \n \n23.2 \n \n7.4 \n140.2 50.1 28.1 34.4 (84.2) (69.0) \n245.2 0.0 0.0 0.0 0.0 \n22.8 \n403.4 $ \n \n7.0 \n102.4 (24.2) 39.1 39.4 (109.2) (66.0) 225.8 (168.5) \n0.0 0.0 0.0 0.0 \n69.0 \n \n$ 13,724.1 $ 13,830.7 $ 12,474.4 $ 10,349.3 $ 4,021.0 $ (1,567.9) $ (2,953.7) $ (5,596.9) $ (6,204.6) $ (5,769.9) \n \n(15,915.4) \n \n(12,497.7) \n \n(4,843.8) \n \n4,022.8 \n \n6,403.4 \n \n5,026.0 \n \n7,267.0 \n \n4,729.2 \n \n6,961.2 \n \n9,691.0 \n \n(14,071.0) 1,286.7 2,580.8 2,786.0 0.0 0.0 0.0 \n(14,398.9) 0.0 0.0 0.0 0.0 \n(64.9) \n \n13,868.0 (381.9) \n4,772.4 2,757.7 \n0.0 (9,259.0) \n0.0 (14,813.1) \n0.0 0.0 0.0 0.0 301.7 \n \n21,922.0 (1,149.5) 4,974.5 2,783.8 \n0.0 0.0 0.0 (20,664.9) 0.0 0.0 0.0 0.0 2,586.9 \n \n24,002.0 (3,000.5) 3,403.6 3,167.0 \n0.0 0.0 0.0 (16,603.6) 0.0 0.0 0.0 2,122.7 872.4 \n \n39,729.0 (828.9) \n12,375.8 3,047.8 0.0 0.0 0.0 \n(14,121.2) 33,717.7 \n0.0 (2,192.3) 2,029.0 \n195.0 \n \n$ (24,072.6) $ 1,421.2 $ 18,083.4 $ 28,335.7 $ 84,376.3 $ \n \n34,015.0 973.7 \n6,201.3 3,267.7 \n0.0 0.0 0.0 0.0 0.0 2,168.0 24,199.5 433.0 (197.3) \n74,519.0 $ \n \n6,623.0 420.3 \n3,381.4 4,021.0 \n0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (281.8) \n18,477.2 $ \n \n(3,737.0) (320.5) \n1,053.3 3,556.9 \n0.0 0.0 0.0 36,404.3 0.0 0.0 0.0 0.0 (846.1) \n35,243.2 $ \n \n7,359.0 1,146.2 (1,717.5) 4,151.6 \n0.0 (3,594.0) \n0.0 0.0 0.0 0.0 0.0 0.0 0.0 \n \n5,256.0 (3,354.4) 4,608.2 4,121.2 \n0.0 (1,559.2) \n0.0 23,008.5 (41,797.1) \n0.0 0.0 0.0 0.0 \n \n8,101.9 $ (5,795.4) \n \n Actuarial \n92 \n \nGJRS \nInterest (7.50) added to previous UAL \nAccrued liability contribution \nExperience: Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Salary increases Method changes Amendments (COLAs) Assumption changes Lawsuit Data changes Programming modification Misc. changes \nTotal \nLRS \nInterest (7.50) added to previous UAL \nAccrued liability contribution \nExperience: Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Salary increases Method changes Amendments No COLAs Assumption changes Lawsuit Data changes Misc. changes \nTotal \n \n2014 \n \n2013 \n \n2012 \n \n2011 \n \n2010 \n \n2009 \n \n2008 \n \n2007 \n \n2006 \n \n2005 \n \nAmount of Increase (Decrease) (in Thousands) \n \n$ (1,207.3) $ (1,977.2) $ (2,774.8) $ (2,891.5) $ (2,636.2) $ (3,360.0) $ (3,585.9) $ (3,729.5) $ (3,889.8) $ (4,035.8) \n \n5,803.3 \n \n5,187.8 \n \n4,710.8 \n \n4,079.8 \n \n4,592.1 \n \n3,596.2 \n \n4,498.3 \n \n3,953.2 \n \n6,928.7 \n \n6,330.0 \n \n(6,807.0) 2,138.5 (5,962.8) 1,272.3 (10,382.5) \n0.0 0.0 0.0 0.0 0.0 0.0 1,110.1 \n$ (14,035.4) $ \n \n4,949.6 533.8 \n3,941.4 3,138.0 (4,620.6) (6,827.0) \n0.0 0.0 0.0 0.0 4,606.4 1,333.8 \n10,266.0 $ \n \n8,638.5 376.9 \n2,080.7 442.3 \n(4,536.5) 0.0 \n(870.0) 0.0 0.0 0.0 \n1,648.9 917.5 \n \n9,404.0 2,076.8 \n(276.3) 750.1 1,265.9 \n0.0 0.0 0.0 0.0 0.0 0.0 (12,852.1) \n \n16,228.0 560.9 \n2,290.6 0.0 \n(10,213.5) 0.0 0.0 \n(14,826.5) 0.0 \n579.1 0.0 \n21.3 \n \n13,941.0 1,102.3 1,982.9 967.2 \n(10,561.2) 0.0 \n(2,359.4) 0.0 0.0 \n4,581.2 0.0 \n(240.6) \n \n10,634.3 $ 1,556.7 $ (3,404.2) $ 9,649.6 $ \n \n3,164.0 409.3 \n1,243.3 354.2 \n(3,432.4) 0.0 \n1,265.0 0.0 0.0 0.0 0.0 \n(903.4) \n3,102.3 $ \n \nAmount of Increase (Decrease) (in Thousands) \n \n(1,026.0) (154.4) \n(1,614.7) 659.5 369.8 0.0 24.1 0.0 0.0 0.0 0.0 \n3,433.5 \n1,915.5 $ \n \n3,464.0 709.7 \n1,649.8 322.6 \n(3,293.9) (1,738.0) 2,383.8 \n0.0 0.0 0.0 0.0 (4,400.5) \n2,136.4 $ \n \n2,648.0 (950.0) \n(2,694.5) 1,638.0 (5,002.0) 1,702.3 5,036.8 (2,725.8) \n0.0 0.0 0.0 0.0 \n1,915.5 \n \n$ \n \n(343.3) $ \n \n(301.8) $ \n \n(302.5) $ \n \n(343.4) $ \n \n(508.5) $ \n \n(468.9) $ \n \n(426.9) $ \n \n(432.3) $ \n \n(369.8) $ \n \n(440.1) \n \n161.9 \n \n(62.4) \n \n33.9 \n \n107.1 \n \n(32.5) \n \n(21.1) \n \n(26.3) \n \n(31.1) \n \n(43.1) \n \n43.1 \n \n(576.5) 323.8 (347.5) 135.2 \n0.0 0.0 0.0 (470.8) 0.0 0.0 0.0 69.9 \n$ (1,047.3) $ \n \n513.9 (29.6) 17.4 144.5 \n0.0 (418.0) (488.1) \n0.0 0.0 0.0 0.0 71.1 \n(553.1) $ \n \n829.0 19.1 (84.3) 16.9 0.0 0.0 \n(549.7) 0.0 0.0 0.0 0.0 \n46.4 \n8.8 $ \n \n906.2 (18.7) 254.5 74.0 \n0.0 0.0 (481.8) 0.0 0.0 0.0 0.0 46.9 \n544.9 $ \n \n1,534.0 339.2 105.1 98.8 0.0 0.0 (465.3) 0.0 975.2 0.0 114.8 41.6 \n2,202.4 $ \n \n1,307.4 240.7 (5.7) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 \n(1,529.1) (51.7) \n(528.4) $ \n \n241.7 (2.2) \n(429.8) 35.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 47.4 \n(560.2) $ \n \n(155.0) 119.4 423.8 \n0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 147.9 \n72.7 $ \n \n289.0 (412.7) (154.7) \n0.0 0.0 (142.0) 0.0 0.0 0.0 0.0 0.0 0.0 \n(833.3) $ \n \n208.0 172.6 350.0 158.5 \n0.0 291.1 1,491.7 \n0.0 (1,337.6) \n0.0 0.0 0.0 \n937.3 \n \n Actuarial \n93 \n \nGMPF* \nInterest (7.50) added to previous UAL \nAccrued liability contribution \nExperience: Valuation asset growth Pensioners' mortality Turnover and retirements New entrants Method changes Assumption changes Expense Deficit Misc. changes \nTotal \n \n2014 \n \n2013 \n \n2012 \n \n2011 \n \nAmount of Increase (Decrease) (in Thousands) \n \n$ \n \n1,344.3 $ \n \n1,360.8 $ \n \n1,354.9 \n \n(1,775.3) \n \n(1,661.5) \n \n(1,502.4) \n \n(247.0) 88.8 (87.9) \n142.6 0.0 0.0 0.0 \n161.1 \n \n$ \n \n(373.4) $ \n \n39.3 80.2 186.4 137.8 (393.0) \n0.0 0.0 30.6 \n(219.4) $ \n \n107.0 68.3 17.9 \n127.1 0.0 0.0 0.0 \n(93.6) \n79.2 \n \n1,216.1 \n(1,173.3) \n113.8 58.5 205.4 1,469.6 \n0.0 0.0 37.0 (77.0) 1,850.1 \n \n*Note: Data prior to 2011 is not available for GMPF. \n \nSEAD-Active and SEAD-OPEB: Data is not available. \n \n Actuarial \nSolvency Test Results \nDollar amounts in thousands \nERS  \n \nActuarial Valuation as of 7/1 \n2006 2007 2008 2009 2010 2011 2012 2013 2014 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n \nRetirants \u0026 Beneficiaries \n \nActive Member (Employer Funded \nPortion) \n \nValuation Assets \n \n(1) \n \n(2) \n \n$ 672,679 $ 8,462,884 $ \n \n645,907 \n \n9,020,890 \n \n616,177 \n \n9,756,529 \n \n589,012 \n \n10,034,939 \n \n551,607 \n \n10,652,040 \n \n503,867 \n \n11,058,344 \n \n460,861 \n \n11,420,011 \n \n405,841 \n \n11,935,364 \n \n385,058 \n \n12,108,737 \n \n(3) \n \n5,107,282 $ 12,376,120 \n \n5,218,382 \n \n13,843,689 \n \n5,308,151 \n \n14,017,346 \n \n5,254,071 \n \n13,613,606 \n \n5,091,705 \n \n13,046,193 \n \n5,094,694 \n \n12,667,557 \n \n4,897,050 \n \n12,260,595 \n \n4,641,244 \n \n12,129,803 \n \n4,498,168 \n \n12,376,120 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \n(2) \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n98.2% 99.0% \n \n(3) \n84.7% 80.0% 68.7% 56.9% 36.2% 21.7% \n7.8% 0.0% 0.0% \n \nPSERS  \n \nActuarial Valuation as of 7/1 \n2006 2007 2008 2009 2010 2011 2012 2013 2014 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n \nRetirants \u0026 Beneficiaries \n \nActive Member (Employer Funded \nPortion) \n \nValuation Assets \n \n(1) \n$ 14,321 $ 14,796 15,285 15,862 16,361 16,627 16,917 17,016 16,995 \n \n(2) \n428,543 $ 456,868 469,601 506,659 528,808 532,509 537,284 549,796 566,344 \n \n(3) \n248,787 $ 274,414 286,064 300,711 330,227 336,790 341,123 343,444 341,026 \n \n766,277 785,460 791,855 769,618 737,406 719,601 710,915 727,268 765,450 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \n(2) \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \n(3) \n100.0% 100.0% 100.0% \n82.2% 58.2% 50.6% 45.9% 46.7% 53.4% \n \nGJRS  \n \nActuarial Valuation as of 7/1 \n2006 2007 2008 2009 2010 2011 2012 2013 2014 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n(1) \n$ 48,896 52,707 59,838 61,188 67,293 71,047 73,998 73,949 80,007 \n \nRetirants \u0026 Beneficiaries \n \nActive Member (Employer Funded \nPortion) \n \n(2) \n \n(3) \n \n$ \n \n86,194 $ \n \n87,333 \n \n90,601 \n \n108,923 \n \n117,730 \n \n128,991 \n \n141,880 \n \n162,364 \n \n162,527 \n \n94,747 109,238 118,077 112,363 \n96,473 90,440 92,984 99,479 100,894 \n \nValuation Assets \n$ 279,564 297,090 313,315 317,624 320,050 327,483 335,225 351,889 373,560 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \n(2) \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \n(3) \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \n94 \n \n Actuarial \nLRS  \n \nActuarial Valuation as of 7/1 \n2006 2007 2008 2009 2010 2011 2012 2013 2014 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n(1) \n$ 2,507 2,484 2,853 2,908 3,166 2,921 3,185 2,951 3,430 \n \nRetirants \u0026 Beneficiaries \n \nActive Member (Employer Funded \nPortion) \n \n(2) \n \n(3) \n \n$ 18,734 $ 19,847 19,366 18,465 19,208 19,759 19,200 19,623 19,006 \n \n2,166 2,026 2,235 2,150 2,629 2,564 2,581 2,330 2,477 \n \nValuation Assets \n$ 29,172 30,049 30,706 30,303 29,581 29,278 28,990 29,481 30,538 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \n(2) \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \n(3) \n100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% \n \nGMPF  \n \nActuarial Valuation as of 7/1 \n2006 2007 2008 2009 2010 2011 2012 2013 2014 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n \n(1) \n \n$ \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \nRetirants \u0026 Beneficiaries \n \nActive Member (Employer Funded \nPortion) \n \n(2) \n$ 6,392 7,655 9,449 \n12,742 14,015 15,379 17,518 19,396 21,389 \n \n(3) \n$ 11,233 12,232 9,675 8,279 9,758 11,388 10,713 10,660 10,426 \n \nValuation Assets \n$ 3,100 4,165 5,269 6,413 7,558 8,702 \n10,087 12,131 14,264 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n \n(2) \n \n(3) \n \nn/a \n \n48.5% \n \n0.0% \n \nn/a \n \n54.4% \n \n0.0% \n \nn/a \n \n55.8% \n \n0.0% \n \nn/a \n \n50.3% \n \n0.0% \n \nn/a \n \n53.9% \n \n0.0% \n \nn/a \n \n56.6% \n \n0.0% \n \nn/a \n \n57.6% \n \n0.0% \n \nn/a \n \n62.5% \n \n0.0% \n \nn/a \n \n66.7% \n \n0.0% \n \nSEAD-Active 2 \nActuarial Valuation as of 7/1 \n2007 2008 2009 2010 2011 2012 2013 2014 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n \n(1) \n \n$ \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \nRetirants \u0026 Beneficiaries \n \nActive Member (Employer Funded \nPortion) \n \n(2) \n \n$ \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n0 \n \n(3) \n$ 59,509 62,171 61,351 40,523 40,145 39,317 37,512 35,877 \n \nValuation Assets \n$ 185,335 172,595 144,161 156,132 184,783 183,390 204,779 235,358 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n \n(2) \n \n(3) \n \nn/a \n \nn/a \n \n100.0% \n \nn/a \n \nn/a \n \n100.0% \n \nn/a \n \nn/a \n \n100.0% \n \nn/a \n \nn/a \n \n100.0% \n \nn/a \n \nn/a \n \n100.0% \n \nn/a \n \nn/a \n \n100.0% \n \nn/a \n \nn/a \n \n100.0% \n \nn/a \n \nn/a \n \n100.0% \n \n95 \n \n Actuarial \nSEAD-OPEB 2 \n \nActuarial Valuation as of 7/1 \n2007 2008 2009 2010 2011 2012 2013 2014 \n \nActuarial Accrued Liability for: \n \nActive Member Contributions \n(1) \n$ 0 0 0 0 0 0 0 0 \n \nRetirants \u0026 Beneficiaries \n \nActive Member (Employer Funded \nPortion) \n \n(2) \n$ 436,530 486,569 524,718 516,633 503,327 528,165 586,228 621,502 \n \n(3) \n$ 206,001 213,315 208,953 174,368 175,093 176,452 168,558 166,518 \n \nValuation Assets \n$ 778,048 737,114 628,199 680,449 807,893 818,284 907,831 \n1,037,901 \n \nPortion of Aggregate Accrued Liabilities Covered by Assets \n \n(1) \n \n(2) \n \n(3) \n \nN/A \n \n100.0% \n \n100.0% \n \nN/A \n \n100.0% \n \n100.0% \n \nN/A \n \n100.0% \n \n49.5% \n \nN/A \n \n100.0% \n \n93.9% \n \nN/A \n \n100.0% \n \n100.0% \n \nN/A \n \n100.0% \n \n100.0% \n \nN/A \n \n100.0% \n \n100.0% \n \nN/A \n \n100.0% \n \n100.0% \n \n Data prior to 2006 is not available for Defined Benefit Pension Plans. 2 SEAD-Active and SEAD-OPEB were created effective July 1, 2007. \n \n96 \n \n Statistical Section \n \nERS \n \nGMPF \n \nGJRS \n \nERSGA \n \nLRS \n \nPSR \n \nGDCP \n \nPSERS \n \nE RSGA \nEmployees' Retirement System of Georgia \nServing those who serve Georgia \n \n Statistical \nIntroduction \nThe objective of the statistical section is to provide a historical perspective, context and relevant details to assist readers in evaluating the condition of the plans. All nonaccounting data is taken from ERSGA's internal sources except for information which is derived from the actuarial valuations. FY2010 was the first year ERSGA added this information in their Annual Financial Report. Therefore, historical detail may not be complete for some schedules. Statistical information is not presented for SCJRF and DARF as both plans are immaterial, have no active members, and are closed to new members. \nFinancial Trends \nThe following schedules have been included to help the reader understand how the System's financial position has changed over the past 10 years: Additions by Source Deductions by Type Changes in Fiduciary Net Position \nOperational Trends \nThe following schedules have been included to help the readers understand how the System's financial report relates to the services provided by the System and the activities it performs: \nRetiree Information Withdrawal (Refund) Data New Retiree Elections Overall Plan Statistics \n98 \n \n Statistical \nAdditions by Source - Contribution/Investment Income (in thousands) \n99 \n \nERS \nEmployee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \nPSERS \nEmployee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \nGJRS \nEmployee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \nLRS \nEmployee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \n \n2006 \n \n2007 \n \n2008 \n \n2009 \n \n2010 \n \n2011 \n \n2012 \n \n2013 \n \n2014 \n \n2015 \n \n$ \n \n50,963 \n \n49,250 \n \n48,324 \n \n43,978 \n \n42,052 \n \n39,480 \n \n36,561 \n \n38,955 \n \n32,423 \n \n33,713 \n \n258,482 \n \n270,141 286,256 \n \n281,206 \n \n263,064 \n \n261,132 274,034 \n \n358,992 \n \n418,807 \n \n505,668 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n10,945 \n \n12,495 \n \n774,724 1,869,113 (482,679) (1,726,302) 1,176,741 2,269,270 \n \n231,782 1,495,849 2,021,748 \n \n474,147 \n \n-- \n \n90,333 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n10 \n \n$ 1,084,169 2,278,837 (148,099) (1,401,118) 1,481,857 2,569,882 542,377 1,893,796 2,483,923 1,026,033 \n \n$ \n \n1,380 \n \n1,420 \n \n1,451 \n \n1,472 \n \n1,483 \n \n1,451 \n \n1,426 \n \n1,538 \n \n1,659 \n \n1,800 \n \n3,638 \n \n6,490 \n \n2,869 \n \n5,096 \n \n5,530 \n \n7,509 \n \n15,884 \n \n24,829 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n27,160 \n \n28,461 \n \n44,561 \n \n106,833 \n \n(27,052) \n \n(97,156) \n \n66,404 \n \n128,096 \n \n13,554 \n \n88,067 \n \n123,799 \n \n30,129 \n \n588 \n \n588 \n \n588 \n \n588 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n$ \n \n50,167 \n \n115,331 \n \n(22,144) \n \n(90,000) \n \n73,417 \n \n137,056 \n \n30,864 \n \n114,434 \n \n152,618 \n \n60,390 \n \n$ \n \n4,221 \n \n4,040 \n \n4,698 \n \n4,612 \n \n5,018 \n \n4,721 \n \n4,904 \n \n4,408 \n \n4,731 \n \n5,061 \n \n1,683 \n \n1,778 \n \n2,395 \n \n1,703 \n \n3,369 \n \n1,163 \n \n2,083 \n \n2,279 \n \n1,373 \n \n2,696 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n1,002 \n \n1,564 \n \n15,665 \n \n39,324 \n \n(10,702) \n \n(38,164) \n \n27,378 \n \n57,330 \n \n6,571 \n \n42,104 \n \n60,012 \n \n14,697 \n \n175 \n \n175 \n \n175 \n \n175 \n \n175 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n$ \n \n21,744 \n \n45,317 \n \n(3,434) \n \n(31,674) \n \n35,940 \n \n63,214 \n \n13,558 \n \n48,791 \n \n67,118 \n \n24,018 \n \n$ \n \n324 \n \n320 \n \n320 \n \n320 \n \n318 \n \n320 \n \n54 \n \n62 \n \n73 \n \n71 \n \n75 \n \n75 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n1,684 \n \n4,072 \n \n(1,051) \n \n(3,772) \n \n2,610 \n \n5,194 \n \n110 \n \n110 \n \n110 \n \n110 \n \n110 \n \n-- \n \n$ \n \n2,172 \n \n4,564 \n \n(548) \n \n(3,271) \n \n3,113 \n \n5,589 \n \n323 76 -- 550 -- \n949 \n \n373 128 \n-- 3,573 \n-- \n4,074 \n \n282 45 -- \n4,969 -- \n5,296 \n \n327 -- -- 1,189 -- \n1,516 \n \n Statistical \n100 \n \nGMPF \nEmployee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \n \n2006 \n \n$ \n \n-- \n \n891 \n \n-- \n \n103 \n \n-- \n \n$ \n \n994 \n \n2007 \n-- 1,005 \n-- 503 \n-- \n1,508 \n \n2008 \n-- 1,103 \n-- (191) \n-- \n912 \n \n2009 \n-- 1,323 \n-- (657) \n-- \n666 \n \n2010 \n-- 1,434 \n-- 565 \n-- \n1,999 \n \n2011 \n-- 1,282 \n-- 1,465 \n-- \n2,747 \n \n2012 \n-- 1,521 \n-- 221 \n-- \n1,742 \n \n2013 \n-- 1,703 \n-- 1,374 \n-- \n3,077 \n \n2014 \n-- 1,892 \n-- 2,179 \n-- \n4,071 \n \nSEAD - Active* \n \nEmployee Contributions Employer Contributions \n \n$ \n \nInsurance Premiums \n \nNet Investment Income (Loss) \n \nOther \n \nTotal Additions to (Deductions from) Fiduciary Net \n \nPosition \n \n$ \n \nSEAD - OPEB* \n \nEmployee Contributions Employer Contributions \n \n$ \n \nInsurance Premiums \n \nNet Investment Income (Loss) \n \nOther \n \nTotal Additions to (Deductions from) Fiduciary Net \n \nPosition \n \n$ \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n864 \n \n880 \n \n900 \n \n847 \n \n771 \n \n699 \n \n607 \n \n-- \n \n-- \n \n(6,321) \n \n(22,656) \n \n15,910 \n \n33,023 \n \n3,876 \n \n24,274 \n \n35,073 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n(5,457) \n \n(21,776) \n \n16,810 \n \n33,870 \n \n4,647 \n \n24,973 \n \n35,680 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n7,756 \n \n7,551 \n \n6,755 \n \n6,437 \n \n5,532 \n \n5,075 \n \n4,502 \n \n-- \n \n-- \n \n(27,032) \n \n(96,424) \n \n69,340 \n \n144,270 \n \n17,193 \n \n108,148 \n \n154,868 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n(19,276) \n \n(88,873) \n \n76,095 \n \n150,707 \n \n22,725 \n \n113,223 \n \n159,370 \n \n*Plans began in fiscal year 2008. \n \n2015 \n-- 1,893 \n-- 585 \n-- \n2,478 \n-- -- 581 8,714 -- \n9,295 \n-- -- 4,187 37,876 -- \n42,063 \n \n Statistical \n101 \n \nDefined Contribution Plan - GDCP \nEmployee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \nDefined Contribution Plan - 401(k) \nEmployee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \nDefined Contribution Plan - 457 \nEmployee Contributions Employer Contributions Nonemployer Contributions Net Investment Income (Loss) Other \nTotal Additions to (Deductions from) Fiduciary Net Position \n \n2006 \n \n$ \n \n14,677 \n \n-- \n \n-- \n \n3,501 \n \n-- \n \n$ \n \n18,178 \n \n$ \n \n34,557 \n \n15,378 \n \n-- \n \n19,889 \n \n252 \n \n$ \n \n70,076 \n \n$ \n \n28,967 \n \n-- \n \n-- \n \n41,897 \n \n197 \n \n$ \n \n71,061 \n \n2007 \n15,060 -- -- \n7,938 -- \n22,998 \n34,956 14,774 \n-- 39,927 \n674 \n90,331 \n28,116 -- -- \n72,425 537 \n101,078 \n \n2008 \n15,860 -- -- \n(331) -- \n15,529 \n38,927 14,193 \n-- (21,302) \n921 \n32,739 \n26,466 -- -- \n(31,343) 761 \n(4,116) \n \n2009 \n15,608 -- -- \n(5,294) -- \n10,314 \n33,432 6,939 -- \n(50,330) 750 \n(9,209) \n24,087 -- -- \n(70,066) 626 \n(45,353) \n \n2010 \n16,002 -- -- \n10,319 -- \n26,321 \n33,899 15,664 \n-- 25,283 \n385 \n75,231 \n21,171 -- -- \n35,806 468 \n57,445 \n \n2011 \n17,656 -- -- \n775 -- \n18,431 \n38,006 25,442 \n-- 59,581 \n446 \n123,475 \n20,108 -- -- \n70,963 339 \n91,410 \n \n2012 \n17,171 -- -- \n652 -- \n17,823 \n40,331 4,355 -- 3,112 800 \n48,598 \n19,551 -- -- \n7,785 -- \n27,336 \n \n2013 \n16,676 -- -- \n137 -- \n16,813 \n44,428 18,279 \n-- 52,835 \n948 \n116,490 \n18,753 -- -- \n55,737 -- \n74,490 \n \n2014 \n16,290 -- -- \n1,368 -- \n17,658 \n53,724 21,513 \n-- 78,583 \n1,122 \n154,942 \n17,623 -- -- \n73,746 -- \n91,369 \n \n2015 \n15,655 -- -- \n1,326 -- \n16,981 \n64,870 25,615 \n-- 17,665 \n1,298 \n109,448 \n17,445 -- -- \n18,991 -- \n36,436 \n \n Statistical \nDeductions by Type (in thousands) \n \nERS \nFiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nBenefit Payments \n \nService \n \nPartial LumpSum Option \n \n$ \n \n664,891 \n \n721,869 \n \n797,052 \n \n889,669 \n \n878,482 \n \n921,136 \n \n964,485 \n \n1,007,816 \n \n1,051,993 \n \n1,076,676 \n \n14,360 17,821 24,792 22,011 23,480 30,946 31,963 35,933 24,567 24,391 \n \nDisability \n120,315 127,091 131,709 135,743 146,031 140,849 143,317 145,152 146,245 147,418 \n \nSurvivor Benefits \n58,294 61,873 66,397 69,735 82,676 75,891 76,973 80,300 83,193 85,794 \n \nTotal Benefit Payments \n \n$ \n \n857,860 \n \n928,654 \n \n1,019,950 \n \n1,117,158 \n \n1,130,669 \n \n1,168,822 \n \n1,216,738 \n \n1,269,201 \n \n1,305,998 \n \n1,334,278 \n \nNet Administrative \nExpenses \n10,596 14,901 18,805 16,809 14,505 14,431 12,051 12,889 \n7,440 7,872 \n \nRefunds \n6,978 6,696 7,815 6,597 6,483 7,515 7,767 7,390 8,757 7,450 \n \nTotal Deductions from \nFiduciary Net Position \n \n$ \n \n875,434 \n \n950,251 \n \n1,046,570 \n \n1,140,564 \n \n1,151,657 \n \n1,190,768 \n \n1,236,556 \n \n1,289,480 \n \n1,322,195 \n \n1,349,600 \n \nPSERS \nFiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nBenefit Payments \n \nService \n \n$ \n \n37,505 \n \n40,070 \n \n41,607 \n \n45,159 \n \n45,741 \n \n46,548 \n \n46,911 \n \n47,805 \n \n48,911 \n \n49,704 \n \nDisability \n4,534 4,814 4,956 5,232 5,402 5,369 5,369 5,328 5,280 5,227 \n \nSurvivor Benefits \n1,465 1,580 1,682 1,806 2,052 2,063 1,903 1,908 1,998 2,041 \n \nTotal Benefit Payments \n \n$ \n \n43,504 \n \n46,464 \n \n48,245 \n \n52,197 \n \n53,195 \n \n53,980 \n \n54,183 \n \n55,041 \n \n56,189 \n \n56,972 \n \nNet Administrative \nExpenses \n588 588 588 588 1,956 2,046 2,040 2,021 1,450 1,545 \n \nRefunds \n316 319 308 261 251 267 349 492 514 456 \n \nTotal Deductions from \nFiduciary Net Position \n \n$ \n \n44,408 \n \n47,371 \n \n49,141 \n \n53,046 \n \n55,402 \n \n56,293 \n \n56,572 \n \n57,554 \n \n58,153 \n \n58,973 \n \nGJRS \nFiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nBenefit Payments \n \nService \n \n$ \n \n7,663 \n \n7,908 \n \n8,259 \n \n9,453 \n \n10,633 \n \n11,245 \n \n12,608 \n \n14,273 \n \n15,305 \n \n16,084 \n \nDisability \n103 106 110 112 114 112 113 112 112 112 \n \nSurvivor Benefits \n1,136 1,285 1,498 1,546 1,618 1,654 1,695 1,865 2,024 2,169 \n \nTotal Benefit Payments \n \n$ \n \n8,902 \n \n9,299 \n \n9,867 \n \n11,111 \n \n12,365 \n \n13,011 \n \n14,416 \n \n16,250 \n \n17,441 \n \n18,365 \n \nNet Administrative \nExpenses \n175 175 175 175 270 290 310 313 754 819 \n \nRefunds \n379 76 14 \n263 139 260 146 105 \n22 772 \n \nTotal Deductions from \nFiduciary Net Position \n \n$ \n \n9,456 \n \n9,550 \n \n10,056 \n \n11,549 \n \n12,774 \n \n13,561 \n \n14,872 \n \n16,668 \n \n18,217 \n \n19,956 \n \n102 \n \n Statistical \nLRS Benefit Payments \n \nFiscal Year \n2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nService \n \n$ \n \n1,210 \n \n1,187 \n \n1,228 \n \n1,265 \n \n1,308 \n \n1,309 \n \n1,364 \n \n1,376 \n \n1,336 \n \n1,315 \n \nSurvivor Benefits \n381 401 406 425 436 452 446 448 465 441 \n \nTotal Benefit Payments \n \n$ \n \n1,591 \n \n1,588 \n \n1,634 \n \n1,690 \n \n1,744 \n \n1,761 \n \n1,810 \n \n1,824 \n \n1,801 \n \n1,756 \n \nNet Administrative \nExpenses \n110 110 110 110 120 131 110 119 152 169 \n \nRefunds \n18 33 65 49 47 60 74 88 30 26 \n \nTotal Deductions from \nFiduciary Net Position \n \n$ \n \n1,719 \n \n1,731 \n \n1,809 \n \n1,849 \n \n1,911 \n \n1,952 \n \n1,994 \n \n2,031 \n \n1,983 \n \n1,951 \n \nGMPF \nFiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nBenefit Payments \n \nService* \n \nTotal Benefit Payments \n \n$ \n \n150 $ \n \n150 \n \n225 \n \n225 \n \n303 \n \n303 \n \n382 \n \n382 \n \n489 \n \n489 \n \n579 \n \n579 \n \n678 \n \n678 \n \n772 \n \n772 \n \n841 \n \n841 \n \n896 \n \n896 \n \nNet Administrative \nExpenses \n43 37 34 31 110 121 \n \nTotal Deductions from \nFiduciary Net Position \n \n$ \n \n150 \n \n225 \n \n303 \n \n382 \n \n532 \n \n616 \n \n712 \n \n803 \n \n951 \n \n1,017 \n \n*The only type of retirement in GMPF is a service retirement. \n \n103 \n \n Statistical \n \nSEAD-Active \nFiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nBenefit Payments \n \nDeath Benefits** \n \n$ \n \n- \n \n- \n \n7,261 \n \n6,636 \n \n4,817 \n \n5,197 \n \n6,018 \n \n3,562 \n \n5,055 \n \n3,929 \n \nTotal Benefit Payments \n \n$ \n \n- \n \n- \n \n7,261 \n \n6,636 \n \n4,817 \n \n5,197 \n \n6,018 \n \n3,562 \n \n5,055 \n \n3,929 \n \nNet Administrative \nExpenses \n22 22 22 22 22 22 46 47 \n \nTotal Deductions from \nFiduciary Net Position \n \n$ \n \n- \n \n- \n \n7,283 \n \n6,658 \n \n4,839 \n \n5,219 \n \n6,040 \n \n3,584 \n \n5,101 \n \n3,976 \n \nSEAD-OPEB \nFiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nBenefit Payments \n \nDeath Benefits** \n \n$ \n \n- \n \n- \n \n21,455 \n \n19,839 \n \n23,642 \n \n23,060 \n \n24,855 \n \n28,482 \n \n28,891 \n \n32,979 \n \nTotal Benefit Payments \n21,455 19,839 23,642 23,060 24,855 28,482 28,891 32,979 \n \nNet Administrative \nExpenses \n203 203 203 203 203 203 414 428 \n \nTotal Deductions from \nFiduciary Net Position \n \n$ \n \n- \n \n- \n \n21,658 \n \n20,042 \n \n23,845 \n \n23,263 \n \n25,058 \n \n28,685 \n \n29,305 \n \n33,407 \n \n**The only type of benefit in SEAD-Active and SEAD-OPEB is a death benefit.  Plan began in fiscal year 2008. \n \n104 \n \n Statistical \n \nDefined Contribution Plan - GDCP Benefit Payments \n \nFiscal Year \n2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nPeriodic Payments \n \nTotal Benefit Payments \n \n$ \n \n- $ \n \n- \n \n- \n \n- \n \n9 \n \n9 \n \n9 \n \n9 \n \n9 \n \n9 \n \n9 \n \n9 \n \n11 \n \n11 \n \n9 \n \n9 \n \n9 \n \n9 \n \n- \n \n- \n \nNet Administrative \nExpenses \n310 310 310 310 1,110 1,180 1,138 1,160 991 990 \n \nRefunds \n13,216 12,464 11,514 10,377 10,613 11,390 12,749 14,415 17,721 22,340 \n \nTotal Deductions from \nFiduciary Net Position \n \n$ \n \n13,526 \n \n12,774 \n \n11,833 \n \n10,696 \n \n11,732 \n \n12,579 \n \n13,898 \n \n15,584 \n \n18,721 \n \n23,330 \n \nDefined Contribution Plan - 401(k) Benefit Payments \n \nFiscal Year \n2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nDistributions \n \nTotal Benefit Payments \n \n$ \n \n17,566 $ \n \n17,566 \n \n25,785 \n \n25,785 \n \n26,548 \n \n26,548 \n \n21,105 \n \n21,105 \n \n23,618 \n \n23,618 \n \n42,457 \n \n42,457 \n \n36,986 \n \n36,986 \n \n57,351 \n \n57,351 \n \n43,133 \n \n43,133 \n \n95,428 \n \n95,428 \n \nNet Administrative \nExpenses \n1,305 1,050 1,472 1,028 \n829 2,054 2,111 2,457 2,300 2,755 \n \nTotal Deductions from \nFiduciary Net Position \n \n$ \n \n18,871 \n \n26,835 \n \n28,020 \n \n22,133 \n \n24,447 \n \n44,511 \n \n39,097 \n \n59,808 \n \n45,433 \n \n98,183 \n \nDefined Contribution Plan - 457 Benefit Payments \n \nFiscal Year \n2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 \n \nDistributions \n \nTotal Benefit Payments \n \n$ \n \n34,055 $ \n \n34,055 \n \n53,097 \n \n53,097 \n \n41,555 \n \n41,555 \n \n37,257 \n \n37,257 \n \n37,014 \n \n37,014 \n \n44,773 \n \n44,773 \n \n41,835 \n \n41,835 \n \n63,388 \n \n63,388 \n \n45,807 \n \n45,807 \n \n50,479 \n \n50,479 \n \nNet Administrative \nExpenses \n1,222 921 \n1,169 1,769 2,115 1,064 \n910 996 812 866 \n \nTotal Deductions from \nFiduciary Net Position \n \n$ \n \n35,277 \n \n54,018 \n \n42,724 \n \n39,026 \n \n39,129 \n \n45,837 \n \n42,745 \n \n64,384 \n \n46,619 \n \n51,345 \n \n105 \n \n Statistical \nChanges in Fiduciary Net Position (in thousands) \n106 \n \nERS \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nPSERS \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nGJRS \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nLRS \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nGMPF \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \n \n2006 \n \n2007 \n \n2008 \n \n2009 \n \n2010 \n \n2011 \n \n2012 \n \n2013 \n \n2014 \n \n2015 \n \n$ 1,084,169 2,278,837 (148,099) (1,401,118) 1,481,857 2,569,882 \n \n542,377 1,893,796 \n \n2,483,923 1,026,033 \n \n875,434 \n \n950,251 1,046,570 1,140,564 \n \n1,151,657 1,190,768 1,236,556 1,289,480 \n \n1,322,195 1,349,600 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n(12,724) \n \n(5,009) \n \n-- \n \n-- \n \n208,735 1,328,586 (1,194,669) (2,541,682) \n \n330,200 1,379,114 (706,903) \n \n599,307 \n \n1,161,728 (323,567) \n \n50,167 44,408 \n-- 5,759 \n \n115,331 47,371 \n-- 67,960 \n \n(22,144) 49,141 \n-- (71,285) \n \n(90,000) 53,046 \n-- (143,046) \n \n73,417 55,402 \n-- 18,015 \n \n137,056 56,293 -- 80,763 \n \n30,864 56,572 \n-- (25,708) \n \n114,434 57,554 \n-- 56,880 \n \n152,618 58,153 -- 94,465 \n \n60,390 58,973 \n-- 1,417 \n \n21,744 9,456 -- \n12,288 \n \n45,317 9,550 -- \n35,767 \n \n(3,434) 10,056 \n-- (13,490) \n \n(31,674) 11,549 \n-- (43,223) \n \n35,940 12,774 \n-- 23,166 \n \n63,214 13,561 \n-- 49,653 \n \n13,558 14,872 \n-- (1,314) \n \n48,791 16,668 \n-- 32,123 \n \n67,118 18,217 \n-- 48,901 \n \n24,018 19,956 \n-- 4,062 \n \n2,172 1,719 \n-- 453 \n \n4,564 1,731 \n-- 2,833 \n \n(548) 1,809 \n-- (2,357) \n \n(3,271) 1,849 \n-- (5,120) \n \n3,113 1,911 \n-- 1,202 \n \n5,589 1,952 \n-- 3,637 \n \n949 1,994 \n-- (1,045) \n \n4,074 2,031 \n-- 2,043 \n \n5,296 1,983 \n-- 3,313 \n \n1,516 1,951 \n-- (435) \n \n1,022 \n \n1,508 \n \n912 \n \n150 \n \n225 \n \n303 \n \n-- \n \n-- \n \n-- \n \n872 \n \n1,283 \n \n609 \n \n666 \n \n1,999 \n \n2,747 \n \n1,742 \n \n3,077 \n \n4,071 \n \n2,478 \n \n382 \n \n532 \n \n616 \n \n712 \n \n803 \n \n951 \n \n1,017 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n284 \n \n1,467 \n \n2,131 \n \n1,030 \n \n2,274 \n \n3,120 \n \n1,461 \n \n Statistical \n107 \n \nSEAD - Active* \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nSEAD - OPEB* \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nDefined Contribution Plan - GDCP \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nDefined Contribution Plan - 401(k) \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \nDefined Contribution Plan - 457 \nTotal Additions Total Deductions Transfer In (Out) Changes in Fiduciary Net Position \n* Plan began in fiscal year 2008. \n \n2006 \n \n2007 \n \n2008 \n \n2009 \n \n2010 \n \n2011 \n \n2012 \n \n2013 \n \n2014 \n \n2015 \n \n$ \n \n-- \n \n-- \n \n(5,457) \n \n(21,776) \n \n16,810 \n \n33,870 \n \n4,647 \n \n24,973 \n \n35,680 \n \n9,295 \n \n-- \n \n-- \n \n7,283 \n \n6,658 \n \n4,839 \n \n5,219 \n \n6,040 \n \n3,584 \n \n5,101 \n \n3,976 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n(12,740) \n \n(28,434) \n \n11,971 \n \n28,651 \n \n(1,393) \n \n21,389 \n \n30,579 \n \n5,319 \n \n-- \n \n-- \n \n(19,276) \n \n(88,873) \n \n76,095 \n \n150,707 \n \n22,725 \n \n113,223 \n \n159,370 \n \n42,063 \n \n-- \n \n-- \n \n21,658 \n \n20,042 \n \n23,845 \n \n23,263 \n \n25,058 \n \n28,685 \n \n29,305 \n \n33,407 \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n-- \n \n12,724 \n \n5,009 \n \n5 \n \n2 \n \n-- \n \n-- \n \n(40,934) (108,915) \n \n52,250 \n \n127,444 \n \n10,391 \n \n89,547 \n \n130,070 \n \n8,658 \n \n$ \n \n18,178 \n \n22,998 \n \n15,529 \n \n10,314 \n \n26,321 \n \n18,431 \n \n17,823 \n \n16,813 \n \n17,658 \n \n16,981 \n \n13,526 \n \n12,774 \n \n11,833 \n \n10,696 \n \n11,732 \n \n12,579 \n \n13,898 \n \n15,584 \n \n18,721 \n \n23,330 \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n4,652 \n \n10,224 \n \n3,696 \n \n(382) \n \n14,589 \n \n5,852 \n \n3,925 \n \n1,229 \n \n(1,063) \n \n(6,349) \n \n70,076 18,871 \n51,205 \n \n90,331 26,835 \n63,496 \n \n32,739 28,020 \n4,719 \n \n(9,209) 22,133 \n(31,342) \n \n75,231 24,447 \n50,784 \n \n123,475 44,511 78,964 \n \n48,598 39,097 \n9,501 \n \n116,490 59,808 \n56,682 \n \n154,942 45,433 - \n109,509 \n \n109,448 98,183 11,265 \n \n71,061 35,277 \n35,784 \n \n101,078 54,018 47,060 \n \n(4,116) 42,724 \n(46,840) \n \n(45,353) 39,026 \n(84,379) \n \n57,445 39,129 \n18,316 \n \n91,410 45,837 \n45,573 \n \n27,336 42,745 \n(15,409) \n \n74,490 64,384 \n10,106 \n \n91,369 46,619 \n44,750 \n \n36,436 51,345 \n(14,909) \n \n Statistical \nNumber of Retirees \n108 \n \n Statistical \nAverage Monthly Payments to Retirees \n109 \n \n Statistical \nAnnual Benefit (in thousands) \n110 \n \n Statistical \nWithdrawal Statistics \nNote: The GMPF Plan does not have a refund feature. \n111 \n \n Statistical \nAverage Monthly Benefit Payment for New Retirees - ERS \n \n2006 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2007 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2008 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2009 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2010 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2011 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2012 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2013 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2014 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2015 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n \nYears of Credited Service \n \n10-15 \n \n16-20 \n \n21-25 \n \n26-30 \n \nOver 30 \n \nTotal \n \n$632.54 $2,867.00 \n281 \n \n$1,022.68 $2,971.73 \n299 \n \n$1,347.20 $3,087.80 \n219 \n \n$1,789.67 $3,587.30 \n298 \n \n$3,458.78 $4,345.99 \n1,011 \n \n$2,281.17 $3,715.95 \n2,108 \n \n$655.86 $2,935.70 \n307 \n \n$961.27 $3,071.63 \n303 \n \n$1,317.36 $3,265.26 \n247 \n \n$1,789.83 $3,745.37 \n292 \n \n$3,423.26 $4,373.83 \n1,022 \n \n$2,229.02 $3,778.07 \n2,171 \n \n$701.03 $3,025.39 \n309 \n \n$1,068.51 $3,181.44 \n306 \n \n$1,457.03 $3,408.23 \n280 \n \n$1,899.48 $3,767.28 \n290 \n \n$3,576.69 $4,489.73 \n1,032 \n \n$2,342.60 $3,873.97 \n2,217 \n \n$717.65 $3,109.07 \n344 \n \n$1,059.22 $3,179.28 \n320 \n \n$1,458.18 $3,483.90 \n301 \n \n$1,910.75 $3,875.27 \n324 \n \n$3,627.21 $4,548.96 \n949 \n \n$2,272.58 $3,891.02 \n2,238 \n \n$694.23 $3,023.45 \n391 \n \n$1,086.00 $3,345.36 \n324 \n \n$1,502.32 $3,555.21 \n332 \n \n$1,849.65 $3,802.65 \n375 \n \n$3,653.29 $4,588.73 \n981 \n \n$2,247.01 $3,900.93 \n2,403 \n \n$734.74 $3,228.07 \n437 \n \n$1,107.16 $3,205.88 \n322 \n \n$1,504.51 $3,478.73 \n389 \n \n$1,995.24 $3,762.88 \n461 \n \n$3,575.54 $4,532.07 \n885 \n \n$2,143.95 $3,825.88 \n2,494 \n \n$729.60 $3,040.00 \n518 \n \n$1,247.16 $3,275.37 \n385 \n \n$1,624.82 $3,388.85 \n414 \n \n$2,125.35 $3,807.26 \n486 \n \n$3,708.26 $4,702.47 \n776 \n \n$2,109.84 $3,775.94 \n2,578 \n \n$836.73 $3,391.36 \n684 \n \n$1,183.19 $3,339.84 \n453 \n \n$1,650.14 $3,411.24 \n466 \n \n$2,120.33 $3,765.16 \n780 \n \n$3,487.96 $4,659.17 \n1,033 \n \n$2,088.46 $3,855.98 \n3,416 \n \n$770.41 $3,319.05 \n475 \n \n$1,229.79 $3,336.74 \n305 \n \n$1,518.77 $3,258.94 \n309 \n \n$2,060.46 $3,717.87 \n476 \n \n$3,239.79 $4,484.41 \n542 \n \n$1,873.22 $3,702.67 \n2,107 \n \n$741.89 $3,277.84 \n511 \n \n$1,151.49 $3,430.71 \n313 \n \n$1,675.19 $3,565.09 \n334 \n \n$2,302.55 $3,740.35 \n617 \n \n$3,822.81 $4,545.17 \n559 \n \n$2,080.83 $3,765.24 \n2,334 \n \n112 \n \n Statistical \nAverage Monthly Benefit Payment for New Retirees - PSERS \n \n2006 \nAverage Monthly Benefit Number of Retirees \n2007 \nAverage Monthly Benefit Number of Retirees \n2008 \nAverage Monthly Benefit Number of Retirees \n2009 \nAverage Monthly Benefit Number of Retirees \n2010 \nAverage Monthly Benefit Number of Retirees \n2011 \nAverage Monthly Benefit Number of Retirees \n2012 \nAverage Monthly Benefit Number of Retirees \n2013 \nAverage Monthly Benefit Number of Retirees \n2014 \nAverage Monthly Benefit Number of Retirees \n2015 \nAverage Monthly Benefit Number of Retirees \n \nYears of Credited Service \n \n10-15 \n \n16-20 \n \n21-25 \n \n26-30 \n \nOver 30 \n \nTotal \n \n$137.90 347 \n \n$206.87 206 \n \n$265.04 127 \n \n$324.20 84 \n \n$413.20 115 \n \n$226.26 879 \n \n$143.42 323 \n \n$208.47 174 \n \n$265.12 106 \n \n$331.55 89 \n \n$426.70 93 \n \n$229.16 785 \n \n$149.91 362 \n \n$219.81 199 \n \n$279.58 116 \n \n$349.05 99 \n \n$439.31 98 \n \n$238.04 874 \n \n$156.52 391 \n \n$224.92 200 \n \n$289.93 157 \n \n$357.58 91 \n \n$460.04 90 \n \n$242.89 929 \n \n$157.66 448 \n \n$224.92 200 \n \n$300.93 162 \n \n$359.24 76 \n \n$464.07 105 \n \n$243.41 1,001 \n \n$158.67 463 \n \n$227.68 200 \n \n$297.01 126 \n \n$374.01 79 \n \n$479.42 114 \n \n$245.04 982 \n \n$159.25 480 \n \n$236.46 182 \n \n$303.66 136 \n \n$362.36 74 \n \n$476.51 87 \n \n$238.59 958 \n \n$159.34 580 \n \n$232.10 255 \n \n$300.66 175 \n \n$360.75 113 \n \n$478.49 133 \n \n$245.72 1,256 \n \n$155.47 566 \n \n$227.56 246 \n \n$293.83 139 \n \n$352.25 107 \n \n$436.25 118 \n \n$232.98 1,176 \n \n$155.47 511 \n \n$227.56 226 \n \n$293.83 143 \n \n$352.25 97 \n \n$436.25 86 \n \n$230.75 1,063 \n \nNote: PSERS is not a final average pay plan. \n \n113 \n \n Statistical \nAverage Monthly Benefit Payment for New Retirees - GJRS \n \n2006 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2007 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2008 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2009 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2010 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2011 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2012 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2013 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2014 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n2015 \nAverage Monthly Benefit Average Final Average Salary Number of Retirees \n \nYears of Credited Service \n \n10-15 \n \n16-20 \n \n21-25 \n \n26-30 \n \nOver 30 \n \nTotal \n \n$1,648.42 \n \n0 \n \n$7,018.67 \n \n0 \n \n0 \n \n$4,333.55 \n \n$3,680.42 \n \n0 \n \n$8,421.30 \n \n0 \n \n0 \n \n$6,050.86 \n \n1 \n \n0 \n \n1 \n \n0 \n \n0 \n \n2 \n \n$4,635.56 $7,888.25 \n4 \n \n$1,821.81 $8,213.52 \n3 \n \n$5,338.65 $7,150.62 \n3 \n \n$7,603.57 $10,184.26 \n1 \n \n0 \n \n$4,849.90 \n \n0 \n \n$8,359.16 \n \n0 \n \n11 \n \n$2,485.43 $6,662.15 \n4 \n \n0 \n \n$7,368.55 \n \n$4,735.08 \n \n0 \n \n$9,934.33 \n \n$6,342.20 \n \n0 \n \n2 \n \n2 \n \n0 \n \n$4,863.02 \n \n0 \n \n$7,646.23 \n \n0 \n \n8 \n \n$4,874.28 $9,519.58 \n8 \n \n$5,883.17 $8,825.88 \n5 \n \n$7,366.55 $10,071.58 \n7 \n \n$6,630.61 $8,881.08 \n5 \n \n$7,639.64 $10,232.57 \n2 \n \n$6,478.85 $9,506.14 \n27 \n \n$6,337.43 $10,490.01 \n1 \n \n$4,563.90 $7,018.08 \n5 \n \n$7,643.86 $10,490.01 \n2 \n \n$6,422.80 $8,602.74 \n4 \n \n0 \n \n$6,242.00 \n \n0 \n \n$9,150.21 \n \n0 \n \n12 \n \n$4,632.24 $9,211.23 \n4 \n \n$10,170.24 $14,910.13 \n2 \n \n$9,799.81 $13,052.66 \n2 \n \n$8,428.40 $11,264.63 \n3 \n \n0 \n \n$7,614.02 \n \n0 $11,505.85 \n \n0 \n \n11 \n \n$4,204.95 $7,788.39 \n5 \n \n$6,610.26 $9,887.17 \n4 \n \n$7,565.84 $10,361.29 \n4 \n \n$8,791.96 $11,714.95 \n7 \n \n$7,831.84 $10,490.01 \n1 \n \n$6,915.64 $10,035.77 \n20 \n \n$5,179.20 $9,271.48 \n8 \n \n$5,844.29 $8,344.35 \n7 \n \n$6,170.52 $8,370.72 \n7 \n \n$7,954.14 $10,624.52 \n5 \n \n$6,169.77 $8,864.27 \n7 \n \n$6,132.24 $9,010.27 \n34 \n \n$2,989.92 $6,265.39 \n6 \n \n$4,468.12 $7,772.95 \n2 \n \n$6,496.50 $8,998.48 \n7 \n \n0 \n \n$2,703.82 \n \n$4,470.15 \n \n0 \n \n$4,289.57 \n \n$7,166.46 \n \n0 \n \n3 \n \n18 \n \n$4,010.30 $6,937.39 \n2 \n \n$6,317.44 $9,141.51 \n5 \n \n$7,051.15 $9,751.01 \n7 \n \n$7,589.28 $10,165.12 \n2 \n \n$2,406.28 $3,222.98 \n1 \n \n$6,267.69 $8,905.45 \n17 \n \n114 \n \n Statistical \nAverage Monthly Benefit Payment for New Retirees - LRS \n \n2006 \nAverage Monthly Benefit Number of Retirees \n2007 \nAverage Monthly Benefit Number of Retirees \n2008 \nAverage Monthly Benefit Number of Retirees \n2009 \nAverage Monthly Benefit Number of Retirees \n2010 \nAverage Monthly Benefit Number of Retirees \n2011 \nAverage Monthly Benefit Number of Retirees \n2012 \nAverage Monthly Benefit Number of Retirees \n2013 \nAverage Monthly Benefit Number of Retirees \n2014 \nAverage Monthly Benefit Number of Retirees \n2015 \nAverage Monthly Benefit Number of Retirees \n \nYears of Credited Service \n \n8 - 14 \n \n15 - 19 \n \n20 - 24 \n \n25 - 29 \n \n30 \u0026 over \n \nTotal \n \n$355.63 $517.30 \n \n0 \n \n0 \n \n0 $436.47 \n \n3 \n \n3 \n \n0 \n \n0 \n \n0 \n \n6 \n \n$256.96 5 \n \n$476.39 5 \n \n$762.02 2 \n \n$939.00 $1,195.52 \n \n1 \n \n1 \n \n$725.98 14 \n \n$324.74 $604.63 $698.86 \n \n0 \n \n0 $542.74 \n \n4 \n \n4 \n \n2 \n \n0 \n \n0 \n \n10 \n \n$425.39 2 \n \n$650.99 1 \n \n0 $921.00 $1,203.00 $800.10 \n \n0 \n \n2 \n \n3 \n \n8 \n \n$372.93 $558.00 \n \n0 \n \n0 \n \n0 $465.47 \n \n8 \n \n1 \n \n0 \n \n0 \n \n0 \n \n9 \n \n$341.79 12 \n \n$589.12 1 \n \n0 $843.26 $934.73 $456.99 \n \n0 \n \n2 \n \n1 \n \n16 \n \n$363.66 $549.08 \n \n0 \n \n0 $1,286.43 $548.46 \n \n4 \n \n2 \n \n0 \n \n0 \n \n1 \n \n7 \n \n$308.15 14 \n \n$568.93 4 \n \n$670.94 2 \n \n0 $1,166.93 \n \n0 \n \n3 \n \n$497.03 23 \n \n$289.25 $480.21 \n \n0 \n \n0 \n \n0 $336.99 \n \n3 \n \n1 \n \n0 \n \n0 \n \n0 \n \n4 \n \n$341.03 5 \n \n$382.95 1 \n \n$642.84 3 \n \n0 $1,228.50 \n \n0 \n \n2 \n \n$588.51 11 \n \nNote: LRS is not a final average pay plan. \n \n115 \n \n Statistical \nAverage Monthly Benefit Payment for New Retirees - GMPF \n \n2006 \nAverage Monthly Benefit Number of Retirees \n2007 \nAverage Monthly Benefit Number of Retirees \n2008 \nAverage Monthly Benefit Number of Retirees \n2009 \nAverage Monthly Benefit Number of Retirees \n2010 \nAverage Monthly Benefit Number of Retirees \n2011 \nAverage Monthly Benefit Number of Retirees \n2012 \nAverage Monthly Benefit Number of Retirees \n2013 \nAverage Monthly Benefit Number of Retirees \n2014 \nAverage Monthly Benefit Number of Retirees \n2015 \nAverage Monthly Benefit Number of Retirees \n \nYears of Credited Service \n \n20-25 \n \n26 - 30 \n \nOver 30 \n \nTotal \n \n$61.25 4 \n \n$85.00 13 \n \n$100.00 44 \n \n$94.26 61 \n \n$60.83 6 \n \n$83.46 13 \n \n$100.00 54 \n \n$93.84 73 \n \n$55.63 8 \n \n$83.61 18 \n \n$100.00 47 \n \n$91.10 73 \n \n$59.50 20 \n \n$87.63 19 \n \n$100.00 53 \n \n$88.64 92 \n \n$63.82 17 \n \n$85.83 18 \n \n$100.00 56 \n \n$90.44 91 \n \n$63.16 19 \n \n$91.47 17 \n \n$100.00 52 \n \n$90.40 88 \n \n$61.54 13 \n \n$90.33 15 \n \n$100.00 63 \n \n$92.83 90 \n \n$59.44 18 \n \n$89.55 22 \n \n$100.00 42 \n \n$88.29 82 \n \n$61.11 9 \n \n$90.53 19 \n \n$100.00 31 \n \n$91.02 59 \n \n$62.07 15 \n \n$94.10 16 \n \n$100.00 20 \n \n$86.99 51 \n \nNote: GMPF is not a final average pay plan. \n \n116 \n \n Statistical \nRetired Members by Retirement Type \nERS June 30, 2015 \n \nPSERS June 30, 2015 \n \nAmount of Monthly Benefit \n \n$ \n \n1 - 500 \n \n501 - 1,000 \n \n1,001 - 1,500 \n \n1,501 - 2,000 \n \n2,001 - 2,500 \n \n2,501 - 3,000 \n \n3,001 - 3,500 \n \n3,501 - 4,000 \n \n4,001 - 4,500 \n \n4,501 - 5,000 \n \nover 5,000 \n \nTotals \n \nRetirement Type \n \nService \n \nDisability \n \nSurvivor \n \n3,481 \n \n260 \n \n315 \n \n7,312 \n \n977 \n \n325 \n \n5,847 \n \n1,133 \n \n234 \n \n4,574 \n \n932 \n \n153 \n \n3,576 \n \n758 \n \n109 \n \n3,018 \n \n599 \n \n74 \n \n2,498 \n \n425 \n \n49 \n \n2,160 \n \n329 \n \n43 \n \n1,755 \n \n230 \n \n22 \n \n1,552 \n \n185 \n \n13 \n \n3,909 \n \n282 \n \n51 \n \n39,682 \n \n6,110 \n \n1,388 \n \nAmount of Monthly Benefit \n \n$ \n \n1 - 100 \n \n101 - 200 \n \n201 - 300 \n \n301 - 400 \n \n401 - 500 \n \nover 500 \n \nTotals \n \nRetirement Type \n \nService \n \nDisability \n \nSurvivor \n \n87 \n \n6 \n \n212 \n \n5,476 \n \n37 \n \n142 \n \n4,458 \n \n287 \n \n44 \n \n2,588 \n \n423 \n \n6 \n \n1,595 \n \n300 \n \n1 \n \n1,154 \n \n178 \n \n0 \n \n15,358 \n \n1,231 \n \n405 \n \n117 \n \n Statistical \nRetired Members by Retirement Type \nGJRS June 30, 2015 \n \nLRS June 30, 2015 \n \nAmount of Monthly Benefit \n$ 1 - 1,000 1,001 - 2,000 2,001 - 3,000 3,001 - 4,000 4,001 - 5,000 5,001 - 6,000 6,001 - 7,000 7,001 - 8,000 over 8,000 \nTotals \n \nRetirement Type \n \nService \n \nDisability \n \nSurvivor \n \n13 \n \n- \n \n- \n \n20 \n \n- \n \n6 \n \n24 \n \n- \n \n1 \n \n34 \n \n- \n \n1 \n \n22 \n \n2 \n \n1 \n \n17 \n \n- \n \n- \n \n28 \n \n- \n \n- \n \n90 \n \n- \n \n- \n \n31 \n \n- \n \n- \n \n279 \n \n2 \n \n9 \n \nGMPF June 30, 2015 \n \nAmount of Monthly Benefit \n \n$ \n \n1 - 250 \n \n251 - 500 \n \n501 - 750 \n \n751 - 1,000 \n \nover 1,000 \n \nTotals \n \nService \n21 109 \n67 35 24 \n \nRetirement Type \n \nDisability \n \nSurvivor \n \n- \n \n- \n \n- \n \n3 \n \n- \n \n- \n \n- \n \n1 \n \n- \n \n- \n \n256 \n \n0 \n \n4 \n \nAmount of Monthly Benefit \n \n$ \n \n1 - 49 \n \n50 - 100 \n \nover 100 \n \nTotals \n \nRetirement Type Service 844 - \n844 \n \n118 \n \n Statistical \nRetired Members by Optional Form of Benefit \nERS June 30, 2015 \n \nAmount of Monthly Benefit \n \n$ \n \n1 - 500 \n \n501 - 1,000 \n \n1,001 - 1,500 \n \n1,501 - 2,000 \n \n2,001 - 2,500 \n \n2,501 - 3,000 \n \n3,001 - 3,500 \n \n3,501 - 4,000 \n \n4,001 - 4,500 \n \n4,501 - 5,000 \n \nover 5,000 \n \nTotals \n \nMaximum Plan \n1,294 3,937 3,152 2,420 1,860 1,507 1,064 845 608 494 918 \n18,099 \n \nOption 1 \n377 1,103 989 916 664 528 387 276 205 128 282 \n5,855 \n \nForm of Benefit \n \nOption 2 \n \nOption 3 \n \n1,213 \n \n410 \n \n1,731 \n \n612 \n \n1,238 \n \n609 \n \n797 \n \n539 \n \n544 \n \n443 \n \n422 \n \n331 \n \n290 \n \n321 \n \n247 \n \n232 \n \n167 \n \n194 \n \n135 \n \n184 \n \n285 \n \n456 \n \n7,069 \n \n4,331 \n \nOption 4 \n581 739 679 505 493 594 637 695 673 684 2,053 \n8,333 \n \nOption 5A \n123 313 335 233 217 125 117 96 46 46 86 \n \nOption 5B \n58 179 212 249 222 184 156 141 114 79 162 \n \n1,737 \n \n1,756 \n \nMaximum Plan Option 1 \nOption 2 Option 3 Option 4 \nOption 5A Option 5B \n \nSingle life annuity Reduced single life annuity with a guarantee of the remainder of the annuity savings fund account (contributions and interest), if any, to be paid upon the retiree's death \n100% joint and survivor annuity with a popup option upon divorce 50% joint and survivor annuity with a popup option upon divorce Various options, including a specified monthly amount payable to a beneficiary upon the retiree's death, several period certain annuities of varying length, and a five-year accelerated benefit \n100% joint and survivor annuity with a popup option upon divorce or the death of the beneficiary before the retiree 50% joint and survivor annuity with a popup option upon divorce or the death of the beneficiary before the retiree \n \n119 \n \n Statistical \nRetired Members by Optional Form of Benefit \nPSERS June 30, 2015 \n \nAmount of Monthly Benefit \n \n$ \n \n1 - 100 \n \n101 - 200 \n \n201 - 300 \n \n301 - 400 \n \n401 - 500 \n \nover 500 \n \nTotals \n \nMaximum Plan \n0 4,128 4,015 2,659 1,739 1,260 \n13,801 \n \nOption AA \n51 883 444 228 94 37 \n \nForm of Benefit Option AB Option AC \n \n227 \n \n8 \n \n305 \n \n8 \n \n156 \n \n5 \n \n52 \n \n9 \n \n34 \n \n3 \n \n14 \n \n5 \n \nOption AD \n6 60 25 10 1 0 \n \n1,737 \n \n788 \n \n38 \n \n102 \n \nOption B \n13 271 144 59 25 16 \n528 \n \nMaximum Plan Option AA Option AB Option AC Option AD Option B \n \nSingle life annuity 100% joint and survivor annuity 50% joint and survivor annuity Joint and survivor annuity with a specified monthly amount payable to a beneficiary Joint and survivor annuity with the amount payable to a beneficiary limited by the age difference between the retiree and the beneficiary Annuity for a guaranteed period of time (5, 10,15, or 20 years). If retiree outlives guarantee period, there is no benefit due after retiree's death \n \n120 \n \n Statistical \nRetired Members by Optional Form of Benefit \nGJRS June 30, 2015 \nAmount of Monthly Benefit \n$ 1 - 1,000 1,001 - 2,000 2,001 - 3,000 3,001 - 4,000 4,001 - 5,000 5,001 - 6,000 6,001 - 7,000 7,001 - 8,000 over 8,000 \nTotals \n \nForm of Benefit \n \nMaximum Plan \n \nSpousal Coverage \n \n0 \n \n13 \n \n2 \n \n24 \n \n1 \n \n24 \n \n2 \n \n33 \n \n6 \n \n19 \n \n6 \n \n11 \n \n6 \n \n22 \n \n16 \n \n74 \n \n6 \n \n25 \n \n45 \n \n245 \n \nMaximum Plan Spousal Coverage \n \nSingle life annuity Indicates the member elected at enrollment that a survivor annuity be paid to a surviving spouse \n \nLRS June 30, 2015 \n \nAmount of Monthly Benefit \n \n$ \n \n1 - 250 \n \n251 - 500 \n \n501 - 750 \n \n751 - 1,000 \n \nover 1,000 \n \nTotals \n \nForm of Benefit \n \nMaximum Plan \n \nOption B1 \n \n0 \n \n16 \n \n40 \n \n63 \n \n35 \n \n20 \n \n10 \n \n21 \n \n9 \n \n12 \n \n94 \n \n132 \n \nOption B2 \n5 9 12 5 3 \n34 \n \nMaximum Plan Option B1 Option B2 \n \nSingle life annuity 100% joint and survivor annuity 50% joint and survivor annuity \n \nGMPF and SEAD-Active and SEAD-OPEB June 30, 2015 \nThe GMPF Plan provides a benefit only in one form, a life annuity. All 844 current retirees, therefore, have this same form of benefit. The SEAD-Active and SEAD-OPEB plans provide only a lump sum death benefit to a member's beneficiary(ies). \n \n121 \n \n Statistical \nTop Participatory Employers FY10 \nERS \nDepartment of Corrections Department of Behavioral Health and Developmental Disability Department of Transportation Department of Labor Department of Juvenile Justice Department of Natural Resources Department of Human Resources Department of Driver Services Department of Community Health Department of Revenue \nTotal Top Employers Total ERS Member Count \nPSERS \nGwinnett County Schools Cobb County Schools Dekalb County Schools Clayton County Schools Muscogee County Schools Henry County Schools Cherokee County Schools Forsyth County Schools Richmond County Schools Paulding County Schools \nTotal Top Employers Total PSERS Member Count \nGJRS \nCouncil of Superior Court Judges Council of State Court Judges Prosecuting Attorney's Council Council of Juvenile Judges \nTotal Top Employers Total GJRS Member Count \nData from 9 years prior is unavailable. FY10 data is the first available. \n \nMember Count % of total plan \n \n12,527 6,869 4,846 3,867 3,679 2,079 1,942 1,674 1,351 1,154 \n39,988 68,567 \n \n18.2% 10.0% \n7.1% 5.7% 5.4% 3.0% 2.8% 2.4% 2.0% 1.7% \n58.3% \n \n3,931 2,471 2,234 1,382 \n970 909 902 894 877 715 \n15,285 39,962 \n \n9.8% 6.2% 5.6% 3.4% 2.4% 2.3% 2.3% 2.2% 2.2% 1.8% \n38.2% \n \n203 \n \n41.0% \n \n108 \n \n21.8% \n \n96 \n \n19.4% \n \n71 \n \n14.4% \n \n478 \n \n96.6% \n \n495 \n \n122 \n \n Statistical \nTop Participatory Employers FY15 \nERS \nDepartment of Corrections Department of Behavioral Health and Developmental Disabilities Department of Transportation Department of Juvenile Justice Department of Human Services Department of Public Safety Department of Natural Resources Department of Labor Department of Revenue Department of Community Health \nTotal Top Employers Total ERS Member Count \nPSERS \nGwinnett County Schools Cobb County Schools Dekalb County Schools Clayton County Schools Forsyth County Schools Richmond County Schools Muscogee County Schools Houston County Schools Cherokee County Schools Bibb County Schools \nTotal Top Employers Total PSERS Member Count \nGJRS \nCouncil of Superior Courts Council of State Court Judges Prosecuting Attorney's Council Council of Juvenile Courts \nTotal Top Employers Total GJRS Member Count \nSEAD-Active and SEAD-OPEB \nDepartment of Corrections Department of Transportation Department of Behavioral Health and Developmental Disability Department of Labor Department of Juvenile Justice Department of Natural Resources Department of Human Services Department of Public Safety Department of Revenue Department of Public Health \nTotal Top Employers Total Active Member Count \n \nMember Count % of total plan \n \n11,452 4,203 4,065 3,659 3,218 1,720 1,640 1,367 \n961 915 \n33,200 60,419 \n3,579 2,335 2,172 1,294 \n856 780 778 752 685 635 \n13,866 35,488 \n210 121 \n94 69 \n494 514 \n6,079 3,130 1,933 1,770 1,642 1,227 1,156 1,090 \n507 474 \n19,008 35,142 \n \n18.95% 6.96% 6.73% 6.06% 5.33% 2.85% 2.71% 2.26% 1.59% 1.51% \n54.95% \n10.09% 6.58% 6.12% 3.65% 2.41% 2.20% 2.19% 2.12% 1.93% 1.79% \n39.07% \n40.86% 23.54% 18.29% 13.42% \n96.11% \n17.30% 8.91% 5.50% 5.04% 4.67% 3.49% 3.29% 3.10% 1.44% 1.35% \n54.09% \n \n123 \n \n Statistical \nStatistical Data at June 30, 2015 \n124 \n \nSystem ERS \nPSERS GJRS LRS GDCP SCJRF DARF SEAD GMPF \n \nNet Position $ 13 billion \n$ 823 million $405 million $ 32 million $ 102.2 millon $ 7 thousand \n \nEmployer Contributions Old Plan: 21.96% New Plan: 21.96% GSEPS 18.87% \n($518 mil) \n$28.5 million \n6.98% ($4.3 million) \n0% (None) \nNone \n$1.3 million \n \nEmployee Contributions \nOld Plan: 6% (with 4.75% pickup) \nNew Plan: 1.25% GSEPS: 1.25% ($33.7 mil) \n$36 yr prior July 1, 2012 $90 yr after July 1, 2012 (1.8 million) \n7.5% +2.5% Spousal ($5.1 million) \n8.5% (with 4.75% pickup) \n($327 thousand) \n7.5% ($15.7 million) \nNone \n \nActive Members Old Plan: (\u003c1%) 171 New Plan: (57%) 34,579 GSEPS: (42%) 25,669 Total: 60,419 \n35,488 \n516 \n219 \n14,712 \nNone \n \n$ 2 thousand $1.3 billion $ 17.0 million \n \n$69 thousand None \n$1.9 million \n \nNone \nNew Plan: 0.25% Old Plan: 0.50% ($4.8 million) \nNone \n \nNone \nNo. Insured: 35,142 \n13,940 \n \nInactives \n84,791 \n79,468 63 158 \n123,413 None None 1,063 None \n \nRetirees Total: 47,180 \nService: 35,672 Beneficiary: 5,489 Disability: 5,335 \nInv. Sep.: 534 Law. Enf.: 150 \n16,994 \n \nAnnual Payment \n \nAverage Monthly Benefit \n \n$1.3 billion \n \n$2,325 \n \n$57 million \n \n$281 \n \n290 260 1 17 5 No. Insured: 39,794 844 \n \n$18.4 million \n \n$5,428 \n \n$1.8 million $9 thousand $1.3 million \n \n$572 \nPaid Annually \n$5,926 \n \n$69 thousand \nNo. of Claims: 1,100 Amt.Pd: $36.9 mil \n$896 thousand \n \n$855 \nAverage Claim: $33,414 \n$90 \n \n "}],"pages":{"current_page":1,"next_page":2,"prev_page":null,"total_pages":2,"limit_value":10,"offset_value":0,"total_count":15,"first_page?":true,"last_page?":false},"facets":[{"name":"type_facet","items":[{"value":"Text","hits":15}],"options":{"sort":"count","limit":16,"offset":0,"prefix":null}},{"name":"creator_facet","items":[{"value":"Employees' Retirement System of Georgia","hits":7},{"value":"Georgia. 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