The funded status of Illinois Teachers’ Retirement System, Springfield, improved modestly to 44.2% as of June 30, compared with 42.5% a year earlier, thanks to good fiscal year investment returns.
The funded status is based on the results of the $45.3 billion fund’s annual actuarial valuation performed by Buck Consultants. Buck presented trustees with the results of the actuarial study at a board meeting on Friday.
Buck found that TRS’ unfunded liability grew 10.6% to $61.6 billion as of fiscal year-end June 30, up from $55.7 billion the prior year, but did not affect the funded status because “strong investment returns helped assets grow at a pace similar to liabilities,” a TRS statement said.
The teachers’ fund produced “really terrific returns,” said Rebecca A. Gratsinger, CEO of the fund’s general consultant, RVK, as she presented final fiscal year-end returns during the investment committee meeting on Oct. 29.
For all periods ended June 30, TRS net returns were above or close to the returns of its customized benchmark: calendar year-to-date, 7% (benchmark, 5.7%); one year, 17.4% (16.4%); three years, 10.1% (10.3%); five years, 13.2% (12.5%); and 10 years, 7.3% (7.3%). Multiple-year returns are annualized.