Version Date : 7/31/ Public Safety Personnel Retirement System Corrections Officer Retirement Plan Elected Officials’ Retirement Plan Fiscal Year 2012 Financial Report With updates through May 31, 2013

Version Date : 7/31/ Total Plan Statistics Defined Benefit Plan Active Members 34,378 Terminated Vested Members2,497 Drop 1,496 Retired 14,270 Normal 10,883 Beneficiaries1,918 Disability1,469 Total Participants 52,641

Version Date : 7/31/ Total PSPRS Statistics Defined Benefit Plan Active Members18,542 Terminated Vested Members 1,264 Drop 1,496 Retired 9,802 Normal 7,219 Beneficiaries1,239 Disability1,344 Total Participants 31,104

Version Date : 7/31/ Total CORP Statistics Defined Benefit Plan Active Members14,991 Terminated Vested Members 1,101 Retired 3,476 Normal 2,879 Beneficiaries486 Disability111 Total Participants 19,568

Version Date : 7/31/ Total EORP Statistics Defined Benefit Plan Active Members845 Terminated Vested Members 132 Retired 992 Normal 785 Beneficiaries193 Disability14 Total Participants 1,969

Version Date : 7/31/ Total Plan Statistics Defined Benefit Plan Non-Retired Total PlansPSPRSCORPEORP Active Members34,37818,54214, Terminated Vested Members2,4971,2641, DROP1, Total Non-Retired Members38,37121,30216, Retired Normal10,8837,2192, Beneficiaries1,9181, Disability1,4691, Total Retired Members14,2709,8023, Total Participants52,64131,10419,5681,969 Percentage Retired27.1%31.5%17.8%50.4%

Version Date : 7/31/ Total Revenue June 30, 2012 Total Revenue $524,795,980

Version Date : 7/31/ Total Revenue June 30, 2012 Total PlansPSPRSCORPEORP Net Investment Income(54,642,466)(41,661,350)(10,340,020)(2,641,096) ER Contributions380,742,838309,005,09858,946,99612,790,744 Alternative Contributions2,039,3931,824,405145,40869,580 Court Fees8,880,30800 EE Contributions171,471,940112,645,37151,967,8946,858,675 Service Purchase & Transfers16,303,96714,275,1431,219,350809,474 Total Revenue524,795,980396,088,667101,939,62826,767,685

Version Date : 7/31/ Total Expenses June 30, 2012 Total Expenses $701,631,484 Pension Benefits

Version Date : 7/31/ Total Expenses June 30, 2012 Total PlansPSPRSCORPEORP Pension Benefits470,707,078359,668,28774,822,94836,215,843 Survivor Benefits62,263,54447,630,7928,602,3286,030,424 Disability Benefits56,764,56353,214,2092,259,6261,290,728 Deferred Benefits187, Insurance Benefits17,318,62513,513,2162,890,441914,968 DROP Benefits48,774,16946,481,2782,292,8910 Refunds38,209,83312,376,68825,743,51489,631 Administrative Expenses6,360,8284,890,3641,182,692287,772 Transfers1,045,39581,362964,0330 Total Expenses701,631,484538,043,645118,758,47344,829,366

Asset Allocation June 30, 2006 at Market 11 Version Date : 7/31/2013

12 Asset Allocation June 30, 2012 at Market Total Fund $6,626,357,128

Version Date : 7/31/ Asset Allocation Asset ClassOld %New %Range % U.S. Equity20%18%13-23% Non-U.S. Equity15%14%10-18% Private Equity global8%9%5-13% Fixed Income global20%12%8-16% Credit Opportunities9%12%6-15% Absolute Return4% 0-8% GTAA8% 4-12% Real Assets6%7%4-10% Real Estate Global8%10%5-15% Risk Parity0%4%0-8% Short Term Equivalents2% 0-6%

Version Date : 7/31/ Investment Portfolio Returns June 30, Year3 Year5 Year10 Year Total Fund*-0.79%9.73%0.15%5.51% Benchmark**2.89%10.62%0.13%3.91% ASRS1.3%13.2%1.8%6.3% COPERS-0.56%9.72%-0.25%4.88% *Returns shown are net of fees; Returns for ASRS are net of fees and returns for COPERS are net of fees. ** Benchmark 7/1/11-6/30/ % Russell 3000, 15% MSCI World Ex-US, 20% BC Capital Aggregate, 8% 3- Month LIBOR +300 bps, 8% NCREIF MPI, 8% Russell bps, 9% ML US High Yield BB-B Rated Constrained, 6% CPI+200 bps, 4% 91-day T-Bill +200 bps and 2% 91-day T-Bill.

15 Total Fund vs. Benchmark (as of June 30, 2012) *Total Fund returns are gross of fees ** Benchmark 7/1/11-6/30/2012: 20% Russell 3000, 15% MSCI World Ex-US, 20% BC Aggregate, 8% NCREIF MPI, 8% Russell bps, 8% 3-Month LIBOR +300 bps, 9% BofA ML US High Yield BB-B Rated Constrained, 6% CPI+200 bps, 4% BofA ML 3-Month T-Bill +200 bps and 2% BofA ML 3-Month T-Bill. Version Date : 7/31/2013

16 Funding Levels

Version Date : 7/31/ PSPRS – Aggregate Employer Rates *The aggregate computed contribution rates before application of the statutory minimum

Version Date : 7/31/ CORP – Aggregate Employer Rates

Version Date : 7/31/ EORP – Employer Rates

Version Date : 7/31/ *Market value does not include future benefit increase reserve Total Fund Changing Financial Status (in 000s)

Version Date : 7/31/ PSPRS Changing Financial Status (in 000s) *Market value does not include future benefit increase reserve

Version Date : 7/31/ CORP Changing Financial Status (in 000s) *Market value does not include future benefit increase reserve

Version Date : 7/31/ EORP Changing Financial Status (in 000s) *Market value does not include future benefit increase reserve

Version Date : 7/31/ Post Retirement Benefit Increases New mechanism in place as of 2011 Benefit increases paid out based on funding level of plans and investment returns for the prior fiscal year

Total Fund Rates of Return FY’13 (Gross of fees) 25 Version Date : 7/31/2013

Fiscal Year 2013 Updates In the coming months, complete fiscal year data will be available, including:  Year-end investment return  Funding levels of the Plans  Actuarial reports  Employer contribution rates for Check the PSPRS website! Version Date : 7/31/

Contact Info Don Mineer, Local Board Training Specialist  Public Safety Personnel Retirement System 3010 E. Camelback Road, Suite 200 Phoenix, Arizona (602) Version Date : 7/31/