1. Version Date : 01-22-2014 1 Welcome to PSPRS

2. Version Date : 01-22-2014 2 Public Safety Personnel Retirement System Corrections Officer Retirement Plan Elected Officials’ Retirement Plan Fiscal Year 2013 Financial Report as of June 30, 2013

3. Version Date : 01-22-2014 3 Total Plan Statistics Defined Benefit Plan Active Members 33,855 Terminated Vested Members3,065 Drop 1,482 Retired 15,026 Normal 11,450 Beneficiaries2,036 Disability1,540 Total Participants 53,428

4. Version Date : 01-22-2014 4 Total PSPRS Statistics Defined Benefit Plan Active Members18,436 Terminated Vested Members 1,442 Drop 1,482 Retired 10,159 Normal 7,444 Beneficiaries1,305 Disability1,410 Total Participants 31,519

5. Version Date : 01-22-2014 5 Total Plan Statistics Defined Benefit Plan Non-Retired Total PlansPSPRSCORPEORP Active Members33,85518,43614,580839 Terminated Vested Members3,0651,4421,463160 DROP1,482 00 Total Non-Retired Members38,40221,36016,043999 Retired Normal11,4507,4443,164842 Beneficiaries2,0361,305531200 Disability1,5401,41011515 Total Retired Members15,02610,1593,8101,057 Total Participants53,42831,51919,8532,056 Percentage Retired28.1%32.2%19.2%51.4%

6. Version Date : 01-22-2014 6 Total Revenue June 30, 2013 Total Revenue $1,390,349,335

7. Version Date : 01-22-2014 7 Total Revenue June 30, 2013 Total PlansPSPRSCORPEORP Net Investment Income723,261.918551,337,629140,661,68831,262,601 ER Contributions461,681,695378,701,29168,297,94814,682,456 Alternative Contributions2,462,2742,151,786203,683106,805 Court Fees8,411,73900 EE Contributions185,712,059127,362,61850,648,7757,770,666 Service Purchase & Transfers8,819,6507,575,489999,077245,084 Total Revenue1,390,349,3351,067,128,813260,811,17162,409,351

8. Version Date : 01-22-2014 8 Total Expenses June 30, 2013 Total Expenses $762,306,028

9. Version Date : 01-22-2014 9 Total Expenses June 30, 2013 Total PlansPSPRSCORPEORP Pension Benefits502,843,893383,377,25581,829,31837,637,320 Survivor Benefits66,964,33751,443,2979,043,5926,477,448 Disability Benefits61,150,52557,486,3962,306,5411,357,588 Deferred Benefits199,579 00 Insurance Benefits17,114,53913,383,4442,829,735901,360 DROP Benefits61,847,82260,213,9301,633,8920 Refunds44,122,98512,819,71331,179,499123,773 Administrative Expenses6,670,8285,104,4461,266,690299,692 Transfers1,391,520514,209840,62936,682 Total Expenses762,306,028584,542,269130,929,89646,833,863

10. Version Date : 01-22-2014 10 Net Cash Flow FYE June 30 (thousands) EE-ER Contributions – Benefits Payments and Expenses

11. Asset Allocation June 30, 2006 at Market 11 Version Date : 01-22-2014

12. 12 Asset Allocation October 31, 2013 Total Fund $7,669,845,141

13. Total Fund Rates of Return FY’13 13 Version Date : 01-22-2014

14. Total Fund Rates of Return FY’14 (Gross of fees) 14 Version Date : 01-22-2014

15. 15 Asset Allocation Asset ClassOld %New %Range % U.S. Equity18%17%12-22% Non-U.S. Equity14% 10-18% Private Equity global9%10%6-14% Fixed Income global12%8%4-12% Credit Opportunities12% 6-15% Absolute Return4% 0-8% GTAA8%10%6-14% Real Assets7%8%5-11% Real Estate Global10%11%6-16% Risk Parity4% 0-8% Short Term Equivalents2% 0-6%

16. Version Date : 01-22-2014 16 Total Fund Performance As of June 30, 2013 1-Year3-Years5-Years Total Fund * Risk-adjusted Rank 11.14% - 9.27% 9 4.17% 69 Performance Benchmark Risk-adjusted Rank 10.08% - 10.00% 22 3.30% 95 Median Public Fund*12.00%11.30%5.00% The Total Fund returned 11.14% over the Fiscal Year ending June 30, 2013 gross of fees per the CAFR The Total Fund Universe is comprised of Public Funds from the ICC Public Fund Universe and includes over 100 Public Funds over the five full years Rank shows how the performance of the Total Fund compared relative to other Public Funds Returns are gross of fees

17. Contribution to Return by Asset Class FY ‘13 (net of fees) Version Date : 01-22-2014 17

18. 18 Total Fund vs. Benchmark (as of June 30, 2013) *Total Fund returns are gross of fees ** July 1, 2013 to Present: 17% Russell 3000, 14% MSCI World Ex-US Net, 10% Russell 3000 + 100 bps, 8% BC Global Aggregate, 12% Credit Opportunities Benchmark, 4% BofA ML 3-Month T-Bill + 200 bps, 10% 3-Month LIBOR + 300 bps, 8% CPI + 200 bps, 11% NCREIF NPI, 4% Risk Parity Benchmark and 2% BofA ML 3-Month T-Bill Version Date : 01-22-2014

19. Events Today's Portfolio PSPRS Trust Actual Asian Crisis of 1997 8.1% 5.7% Russian/LTCM Crisis 1998-5.4%-5.5% WTC Attacks - Sept. 11-2.7%-11.7% Stock Market Crash 2002-5.5%-21.1% August Crisis 2007 3.3% 1.6% January Crisis 2008-2.3%-2.7% Credit Crunch 2008 (Aug to Nov)-9.3%-23.1% Crisis 2009 (Jan-Feb)-5.6%-12.9% Stress testing: The style analysis model of our current holding can be subjected to stress scenarios. 19 Worst case scenarios – lessons from the past New: On request by Board of Trustees Version Date : 01-22-2014

20. PSPRS Risk-adjusted return relative to the peer groups Version Date : 01-22-2014 20 Rolling 3 Year3 Rank (Right Axis) Percentile PSPRS Universe 9/30/20131.51.21090 6/30/20131.61.3991 3/31/20131.112674 12/31/2012114357 9/30/2012114258 6/30/20121.31.12278 3/31/20121.71.62773 12/31/20110.916634 9/30/20110.3 6337 6/30/20110.20.35941 3/31/20110.10.28119

21. Version Date : 01-22-2014 21 Funding Levels

22. Version Date : 01-22-2014 22 PSPRS – Aggregate Employer Rates *The aggregate computed contribution rates before application of the statutory minimum

23. Version Date : 01-22-2014 23 *Market value does not include future benefit increase reserve Total Fund Changing Financial Status (in 000s)

24. Version Date : 01-22-2014 24 PSPRS Changing Financial Status (in 000s) *Market value does not include future benefit increase reserve

25. Current Issues Developing a communications plan to better reach the members. 65% of the membership have registered emails and will get periodic updates from PSPRS. Six times a year we send out newsletters to the Local Boards (employer) about current issues and updates from PSPRS. Version Date : 01-22-2014 25

26. Legislative initiatives that may affect PSPRS H 2122 EORP Defined Contribution H 2203 PSPRS Board Membership H 2060 PSPRS Oversight; Procurement H 2166 PSPRS Contribution; County Employers H 2056 Retirement; Return to Work H 2090 Defined Contribution Plan HCR 2001 Public Retirement Systems H 2058 Public Pension; Limit on Compensation Version Date : 01-22-2014 26

27. Fields Case No update on the Supreme Court decision If unfavorable, the employer rates would increase. Version Date : 01-22-2014 27

28. Version Date : 01-22-2014 28 Questions?

29. Version Date : 01-22-2014 29 Thank you for attending