1. TRS – PROVIDING FOR YOUR FUTURE
Gwinnett Retiree Luncheon
Gwinnett Center
Duluth, Georgia
Stephen J. Boyers
Chief Financial Officer
November 8, 2012

2. Economy Improving
On September 30, 2012, assets were $55.4 billion ($53.5 billion on June 30, 2012)
($54.1 billion on June 30, 2011)
Assets were $55.14 billion on October 31, 2007 (High point before the Great Recession)
During this 58 month period, TRS paid out $14 billion in retirement benefits
Investment returns:
4.7% - 3 months ending Sept. 30, 2012
2.2% - Fiscal Year 2012
21.3% - Fiscal Year 2011
8.3% - Last 25 years

3. Asset Allocation – September 30, 2012
Equities
70% or $38.9 billion
80% is internally managed ($31.0 Bil)
20% is externally managed ($7.9 Bil)
Fixed ……
28% or $15.6 billion
Other ……
2% or $900 million

4. STATS: Membership – November 1, 2012
Active Contributing Members ,073
Retirees … ,659
Total ,732

5. STATS: Benefits Paid Benefits Paid in FY2012 ...... $3.3 Billion
Avg. Benefit as of November 1,
$ 3,038 per month
$36,456 per year
Avg. Benefit for New Service Retirees in FY2013 (w/ 25 + years of service)...
$ 3,599 per month
$43,188 per year

6. FUNDING: Liabilities
Obligations that TRS currently owes its retired and active members based on current plan provisions.
Present Value of Future Benefits Payable to Retired Members
$37.3 Billion
Present Value of Future Benefits Payable to Active Members
$38.8 Billion
Total Liabilities
$76.1 Billion
Based on actuarial valuation dated June 30, 2011

7. FUNDING: Assets
Funds currently available and funds anticipated to be collected to pay for the obligations.
Actuarial Value of Assets
$55.4 Billion
Present Value of Future Member & Employer Contributions
$10.1 Billion
Total Assets
$65.5 Billion
Based on actuarial valuation dated June 30, 2011

8. FUNDING: Liabilities vs. Assets
Funding status of TRS.
Total Liabilities
$76.1 Billion
Total Assets
$65.5 Billion
Difference is the Actuarial Accrued Liability ....
$10.6 Billion
(Excess of Liabilities Over Assets)
Funded Ratio
84.0%
Based on actuarial valuation dated June 30, 2011

9. FUNDING: Source of Funds
Over the Past 30 Years, total funding came from the following sources:
Contributions:
Employee %
Employer:
State %
Local ………………………… %
Total ……………………………. 24%
Investment Earnings %

10. U.S. Postal Service
USPS took up to a week to deliver the 3,501 paper checks. (01/01/2012 payroll)
Publicized cutbacks in USPS operations have and will continue to delay the delivery of mail.
USPS states that local delivery of 1st class mail could take 2-3 days.
USPS does not guarantee the timeliness of 1st class mail and delivery within Georgia could take 5-7 days.
Approx. 750 of these retirees have switched to EFT.
We need your help to reach out to the remaining 2,803 retirees receiving paper checks.

11. Income Tax Offset
TRS is committed to maintaining a secure, stable and sustainable retirement system for all members – past, present and future.
In 1989, U.S. Supreme Court ruled states had to tax federal and state retirement benefits the same.
In 1990, Legislature gave TRS the authority to grant an adjustment on the first $37,500 in benefits at the time of retirement to offset state income tax.
Board began granting a discretionary 3% increase on the first $37,500 in benefits to all retirees.

12. Income Tax Offset (cont.)
Today, TRS retirees can exclude the first $35,000 of retirement income from their state taxable income beginning at age 62 ($65,000 at age 65)
This is in addition to the discretionary 3% adjustment all TRS retirees receive at the time of retirement.
Basically, TRS retirees are receiving a “double” benefit as it relates to state income taxes.
In March 2012, the TRS Board voted to discontinue granting the tax offset adjustment for all members retiring on or after January 1, 2013.

13. TRS Resources TRS Website – www.trsga.com TRS Call Center
General Information
Legislative Updates
News Updates
Personal Account Information
Payment history
1099 copies
Address changes
Withholding taxes changes
EFT changes
TRS Call Center or

14. What To Keep Up With Retirement Issues?
National Institute on Retirement Security
National Council on Teachers Retirement
National Association of State Retirement Administrators
Center for Retirement Research at Boston College

15. Questions
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