Illinois State Board of Investment, Chicago, saw significantly lower withdrawals from its member retirement systems for the fiscal year ended June 30, according to an annual financial audit from state Auditor General William G. Holland's office.
Withdrawals for the three pension funds ISBI oversees totaled $29.7 million, down from $248.7 million the previous year. Withdrawals are based on the state's funding and the pension funds' benefit payment needs.
“As a result of employer and employee funding transfers being sent directly by the state to the member systems, rather than to ISBI, withdrawals decreased for the year,” according to the auditor general's report.
The retirement systems — State Employees', Judges' and General Assembly — had an aggregate 14.1% investment return for the fiscal year, boosting total assets to $12.9 billion from $11.3 billion.
Total net withdrawals since ISBI was created in 1969 are $2 billion. Larger yearly withdrawals force pension funds to sell off liquid assets to pay benefits.
William Atwood, executive director of ISBI, could not be reached for further information.