1. TRS Funding and Pension Benefits
GSSA Spring Bootstrap
April 19, 2017
L. C. (Buster) Evans
Executive Director

2. TRS FACTS Governed by Georgia Law Title 47 – Chapters 1, 3 and 20
Defined Benefit Plan
COLA – 1.5% each Jan. 1st and July 1st subject to CPI base
As of March 1, 2017:
69.4 Billion in Assets ( $3.9 Billion Fiscal Y-T-D)
Ranked 24th largest retirement fund by Pensions & Investments (02/06/17 issue date)
226,930 Actively Contributing Member Accounts
24,870 (11%) Eligible to Retire (Normal and Early Retirement)
264,028 Active Status Accounts
119,467 Retired Members
Years of
Creditable Service X 2%
Multiplier
2-Year
Final Avg.
Salary =
Maximum Plan
Benefit

3. TRS FACTS (continued) Fiscal Year 2015-16
Median age of new members - 28 years
 Retirees with 25+ years of service:
Average years of service years
Average age at retirement – 58.8 years
Average benefit:
$3,209/month
$38,508/year
$4.2 billion - benefits paid
Average benefit of all retirees:
$3,213/month
or $38,556/ year
7,218 members retired
2,329 retirees passed away

4. Funding Status 79.1% Funded as of June 30, 2015 $50.3 Billion
$50.3 
Billion
Present Value of Future Benefits Payable to Retired Members
42.7  “
Present Value of Future Benefits Payable to Active Members
93.0 
Total Liabilities  
Present Value of Future Contributions
$82.8 
Actuarial Accrued Liability
$65.5 
Actuarial Value of Assets
($17.3)
Unfunded Actuarial Accrued Liabilities
79.1% Funded as of June 30, 2015
Data Based on June 30, 2015 Actuarial Valuation

5. Sources of Funding for Fund Sustainability
Contribution rates are determined by the Board of Trustees in accordance with Georgia law.
Employee Contributions - 6%
O.C.G.A. §
5% Minimum – 6% Maximum
Employer Contributions
O.C.G.A. § based on System’s liabilities as shown by
actuarial valuation
FY 2017 – 14.27%
FY 2018 – 16.81%
Investment Earnings
7.50 % Assumed Rate of Return

6. Employer Contributions Include
Base Salary and T&E for State Earned Positions
Other Considerations
Positions Paid with Federal Funds May Debit the Federal Fund Categories Provided Funds Are Available
Employers Would Be Picking Up The Employer Cost for Positions Above QBE Earnings and the Amounts of the Local Teaching/Responsibility Supplements Paid By the Employer
Employers Impacted the Least Will be Those With Fewer Positions Above the State Earnings and With No or Lower Supplements Paid

7. Contribution Rates Fiscal Year Employer Rate Employee Rate 1980 10.516
1981
11.11
1982
11.47
1983
12.07
1984
12.55
1985
12.71
1986
1987
13.43
1988
1989
13.63
1990
1991
12.64
1992
11.81
1993
1994
1995 5
1996
1997
1998
1999
11.95
Fiscal Year
Employer Rate
Employee Rate
2000
11.29 5
2001
2002
9.24
2003
2004
2005
2006
2007
9.28
2008
2009
2010
9.74
5.25
2011
10.28
5.53
2012
2013
11.41 6
2014
12.28
2015
13.15
2016
14.27
2017
2018
16.81

8. Employer Contribution Rate History

9. Factors Impacting Contribution Rates
Actuarial Assumption Changes
Price and Wage Inflation
Option Factors
Demographics: withdrawals, pre-retirement mortality, disability retirement, service retirement, post-retirement mortality, etc.
Investment Earnings
Investment Earnings Assumption Changes
Increases/Decreases in Actively Contributing Members
Increases/Decreases in Member Salaries

10. Actual to Expected Total Investment Rate of Return

11. Membership Statistics June 30th
Data Based on June 30th Independent Auditors’ Report

12. Economic Impact $239 million $164 million $131 million
March 1, 2017 Monthly Benefit Payroll
119,467 Retirees = $370,681,556
$239 million
in direct economic impacts are supported by retirees’ initial expenditures.
$164 million
in indirect impacts results from these businesses purchasing additional goods and services.
$131 million
in induced impacts occur when employees hired by businesses as a result of the direct and indirect impacts make expenditures.
Total Economic Impact - $534 Million