TRF Followup Action Items Pension Management Oversight Commission

1
TRF Follow-up Action ItemsPension Management
Oversight Commission

• September 11, 2008

2
Sudan Divestment Details

• TRF divested 100 of scrutinized companies
  on or before June 30, 2008 - 44.3M was
  divested - less than 0.5 of total assets

3
Fiscal Impact for TRF Immediate Vesting

• Key Assumptions
• Only applies to 30,000 current non-vested active
  members
• 7.5 avg. investment returns
• 1.5 annual COLA
• 8.9M increase in present value of future
  benefits
• 1.8M Pre-96 Account
• Increased liability to State General Fund
• 7.1M 96 Account
• 575K/year increase in liability to school
  corporations via contribution rate increase
• 1.0 - 1.5M increase in annual administrative
  costs for 30K incremental retirement application
  processing and disbursement of pension payments

4
Pre-96 DB Account Unfunded Liability Projection
Assumptions - State maintains 106 year over
year appropriations - State maintains
30M/year lottery contribution - 7.5 avg
investment return on the Pension Stabilization
Fund