One Counseling the JRS Workshop
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STATE RETIREMENT The SYSTEMS 2101 S. Veterans Parkway P. O. Box 19255 Springfield, IL 62794-9255 PTheP newsletter aa for membersnn ofee the Judges’ ll Retirement System of Illinois 217-782-8500 www.state.il.us/srs FEBRUARY 2008 One– On– One Counseling The 2008 One–On–One counseling April 18 August 28 sessions will be held through August Jefferson County Courthouse LaSalle County Courthouse at the locations below. If you would Mt. Vernon in the afternoon Ottawa 11:30 a.m. – 2:30 p.m. like to schedule an appointment with Jayne Waldeck during a visit to June 12 August 29 your city, contact the Court Admin- Macon County Courthouse Will County Courthouse istrator at that specific location. Decatur in the morning Joliet in the morning February 6 & 7 June 12 August 29 Michael A. Bilandic Building McLean County Courthouse Kankakee County Courthouse 160 North LaSalle, Suite N-725 Bloomington in the afternoon Kankakee in the afternoon Chicago 312-814-5853 June 13 March 10 Peoria County Courthouse JRS Workshop Kane County Courthouse Peoria in the morning St. Charles in the morning To help you start planning for your June 13 retirement years, we urge you to Tazewell County Courthouse March 10 enroll in the Education for Tomor- Pekin in the afternoon DuPage County Courthouse row’s Choices preretirement work- Wheaton in the afternoon July 9 shop. This free, one-day workshop March 11 Rock Island County Courthouse Lake County Courthouse Rock Island in the morning will be held in Chicago at the Bi- Waukegan in the morning landic Building on June 6 and fea- July 9 tures a certified financial planner April 11 Carroll County Courthouse to discuss money management and Vermillion County Courthouse Mt. Carroll in the afternoon investment strategies. Danville in the morning Other speakers will cover July 10 Deferred Compensation, Social Se- April 11 Winnebago County Courthouse curity, insurance and JRS benefits. Coles County Courthouse Rockford in the morning Although retirement may be Charleston in the afternoon July 31 years in the future, this informa- April 18 2nd Municipal District tion will help you begin planning Williamson County Courthouse Skokie 11:30 a.m. – 2:30 p.m. for a lifetime of financial security. Marion in the morning To make a reservation to this August 1 workshop, call the JRS office at 217- 4th Municipal District 782-8500. Maywood 8:30 a.m. – 11 a.m. FY07 Financials Statements of Plan Net Assets June 30, 2007 and 2006 OPERATIONS (unaudited) Total revenue includes participant and employer contributions as well as net 2007 2006 income from investment activities. For ASSETS fiscal year 2007, participant contribu- tions totaled approximately $14.2 mil- Cash $ 11,697,990 $ 16,363,642 lion, a 2.3% increase from fiscal year Receivables 262,335 301,575 2006 participant contributions. Employer contributions increased Investments, at fair value 658,193,724 582,604,390 to $35.2 million in fiscal year 2007 Equipment, net of acc. deprec. 3,323 4,289 from $29.3 million in fiscal year 2006. The increase was due to Public Act 94- Total Assets 670,157,372 599,273,896 0004 which was enacted into law on Total Liabilities 66,422 39,747 June 1, 2005. This legislation stipulated that state contributions for fiscal years Net assets held in trust 2007 and 2006 be based on specific for pension benefits $ 670,090,950 $ 599,234,149 dollar amounts rather than actuarial calculations. Statements of Changes in Plan Net Assets Total expenses include benefit June 30, 2007 and 2006 payments, refunds and administrative (unaudited) expenses. During fiscal year 2007, the 2007 2006 System paid out approximately $76.2 million in benefits and refunds, an REVENUES increase of 9.2% from fiscal year 2006. Contributions: The System’s total administrative costs Participants $ 14,152,973 $ 13,833,096 represented less than 1% of total ex- Employer 35,236,800 29,337,911 penses. Total Contributions 49,389,773 43,171,007 INVESTMENTS By State law, the System’s investment Investment Income 98,157,681 61,329,673 function is managed by the Illinois Total Revenues 147,547,454 104,500,680 State Board of Investment (ISBI) along with the General Assembly and State EXPENSES Employees’ Retirement Systems. All Benefits 75,615,866 68,997,103 investments are accounted for in a Refunds 620,577 821,637 commingled ISBI fund. Administrative 454,210 447,238 The ISBI operates under a strategic investment policy. The investment Total Expenses 76,690,653 70,265,978 objective of the total portfolio is to maximize the rate of return on Net Increase 70,856,801 34,234,702 investments within a prudent level of risk. Net assets held in trust To achieve this objective, the ISBI for pension benefits: invests in different types of assets and Beginning of year 599,234,149 564,999,447 End of year $ 670,090,950 $ 599,234,149 FINANCIALS (continued on page 3) FINANCIALS (continued from page 2) Honoring Those Who Have Fallen uses multiple managers to ensure diversification. The overall rate of return for the ISBI commingled In order to keep our membership aware of current affairs fund was 17.1% for fiscal year 2007, related to JRS, the following judges passed away during 2007. compared to 11.0% for fiscal year 2006. Date of Death Mitchell Leikin 7-12-07 Henry Cowlin 1-11-07 Ellis Reid 8-07-07 FUNDING Arlie Boswell, Jr. 2-11-07 John Nielsen 8-08-07 The System’s funding plan requires Alfred Woodward 2-20-07 Eugene Campion 8-11-07 that state contributions be paid to the Cornelius Houtsma 3-05-07 Wayne Townley 8-11-07 System so that by the end of fiscal Howard White 3-10-07 Paul Gerrity 8-12-07 year 2045, the ratio of net assets Norman Sands 3-27-07 Philip Equi 9-28-07 to the actuarial accrued liability Rolland Tipsword 4-05-07 Jerome Garoon 9-28-07 (funding ratio) will be 90%. Gerald Rohrer 4-06-07 Jackson Newlin 10-01-07 At June 30, 2007, the System’s Charles Wilson 4-24-07 Lloyd Van Deusen 11-01-07 accrued actuarial liability amounted John Flaherty 5-21-07 Joseph Barr 11-10-07 to $1.385 billion. The actuarial value Robert Retke 5-25-07 James Ryan (active) 11-03-07 of net assets (at fair value) amounted William Reardon 11-20-07 to $670.1 million as of the same date, Robert Schwartz 6-02-07 resulting in a funding ratio of 48.4%. Michael Lyons 6-14-07 Arthur Cieslik 12-07-07 JRS Tax Issues Keep Your Beneficiaries Retiree Tax Withholding IRS Form 1099R Current Monthly JRS retirement JRS mails IRS Form 1099R to all benefits are subject to fed- retirees & survivors by the end of You may change eral income tax withhold- January 2008. If you don’t receive your beneficiaries ing. Federal law requires your 1099R by the middle of Febru- at any time by benefit recipients to com- ary, contact us at 217-782-8500. You completing and plete a W-4P to determine if they need the 1099R to file your 2007 filing a new Nomina- want federal income tax withheld federal and state tax returns. tion of Beneficiary form (on the back from their benefit. Your 1099R will show the gross page of this publication) with JRS. If you fail to inform us of your benefit you received from JRS in It is your responsibility to keep decision, taxes are withheld as a 2007. This form will also indicate your designation up-to-date. If no married individual with three ex- the amount of federal income tax beneficiary is on file, any lump sum emptions. No withholding is re- withheld, and for most retirees, the death benefit will be paid to your quired for a monthly benefit of less taxable portion of your benefit. estate. than $1,517.00 unless you request it. Although JRS pension benefits It’s possible that you may have Tax penalties may be incurred if are not subject to Illinois income three different sets of beneficiaries: your estimated tax payment is insuf- tax, different laws apply in other JRS benefits, Group Life Insurance ficient for the year. You may change states. If you live outside of Illinois, and Deferred Compensation. or end your withholding at any contact that state’s Department of time. Revenue for specific information. Printed on Recycled Paper Printed by the Authority of the State of Illinois • 2100 - 2/08 Judges’ Retirement System of Illinois 2101 South Veterans Parkway, P.O. Box 19255, Springfield, Illinois 62794-9255, Phone 217-782-8500 MEMBER’S NOMINATION OF BENEFICIARY(IES) FOR DEATH BENEFITS This form is to be used to nominate the person or persons to re- order you indicate. Two or more persons with the same order ceive any death benefit payable by the Judges’ Retirement System number will receive equal shares. When this beneficiary nomi- of Illinois. This is a legal document which, after preparation, may nation is accepted by the Judges’ Retirement System, an acknowl- not be altered in any way by any person. A member desiring to edgment will be mailed to the current address on file with JRS. change beneficiaries at a later date must complete a new Nomina- If your address is not current, please contact the Administrative tion Beneficiary form. The form on file with the System that has Office of the Illinois Courts. the most recent date, located next to the member’s signature, NOTE! Persons nominated as beneficiaries without order will take precedence.