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DIVISION OF PENSIONS AND BENEFITS A Department of the State of New Jersey

COMPREHENSIVE ANNUAL FINANCIAL REPORT

for the Fiscal Year Ended June 30, 2013

Our mission is to provide

quality benefits and services

that meet the needs of our clients and others

we are committed to serve,

through our efficient and responsive workforce. Our Mission . . . To provide quality benefits and services that meet the needs of our clients and others we are committed to serve, through our efficient and responsive workforce.

Our Vision . . . improvement of our organization through team- work, motivation, and communication among WE will achieve client satisfaction through equi- staff. table, effective, responsive service, and clear and accessible communications that meet the needs of Our Goals . . . our clients. Customer Service — WE will encourage and support an accomplished workforce that is knowledgeable, flexible, techni- TO create and maintain a customer focused cally proficient and committed to excellence. work environment that anticipates and meets client needs. WE will be committed to working with executive and legislative agencies and governing boards to Staff — improve the design and implementation of the TO have a full complement of staff that is benefit programs. well trained, undergoes continual develop- WE will support technologies that simplify pro- ment, and is motivated to provide benefit cedures and improve services, manage our services effectively and efficiently in a cus- resources in a responsible and creative manner, tomer friendly manner. and hold contracted service providers to high Technology — standards. TO have an integrated, easily maintained and WE will work with participating employers to modified, information processing system that enhance their role in the administration of bene- supports the efficient and effective delivery of fits for their employees through integrated tech- services. nology that allows them to access and process Planning — benefit information directly. TO have an effective planning system that Our Values . . . facilitates improvement, anticipates change and properly focuses resources on priorities. WE are customer-focused, recognizing each client individually. Benefits Processing — WE acknowledge as our greatest asset our TO provide benefits to clients in a timely and knowledgeable, hardworking, dedicated and car- efficient manner. ing staff. Advocacy — WE are financially responsible in the administra- TO help structure a well-funded system of tion, oversight, and delivery of our benefit pro- benefits that meets the needs of public grams. employees and employers. WE are committed to providing quality, timely, Oversight and Compliance — accurate, efficient, and cost effective services. TO administer programs with clear and con- WE are committed to creating and developing a sistent policies and procedures and provide quality work environment using state-of-the-art oversight to safeguard fund assets and ensure technologies, and processes that foster continuous benefit entitlement. NEW JERSEY DIVISION OF PENSIONS AND BENEFITS A DEPARTMENT OF THE STATE OF NEW JERSEY 58th COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2013

Chris Christie Governor Andrew P. Sidamon-Eristoff Florence J. Sheppard State Treasurer Acting Director

STATE OF NEW JERSEY DEPARTMENT OF THE TREASURY DIVISION OF PENSIONS AND BENEFITS PO BOX 295 TRENTON, NJ 08625-0295 (609) 292-7524 Programs administered by the NEW JERSEY DIVISION OF PENSIONS AND BENEFITS PERS Public Employees' Retirement System TPAF Teachers' Pension and Annuity Fund PFRS Police and Firemen's Retirement System SPRS State Police Retirement System JRS Judicial Retirement System DCRP Defined Contribution Retirement Program ABP Alternate Benefit Program POPF Prison Officers' Pension Fund CPFPF Consolidated Police and Firemen's Pension Fund NJSEDCP NJ State Employees Deferred Compensation Plan SACT Supplemental Annuity Collective Trust ACTS Additional Contributions Tax-Sheltered Program CPF Central Pension Fund PAF Pension Adjustment Fund UCTDSE Unemployment Compensation and Temporary Disability for State Employees SHBP State Health Benefits Program SEHBP School Employees’ Health Benefits Program PDP Prescription Drug Plan EDP Employee Dental Plans Tax$ave NJ State Employees Tax Savings Program Premium Option Plan, Unreimbursed Medical Flexible Spending Account, and Dependent Care Flexible Spending Account Commuter Tax$ave State Employees Commuter Tax Savings Program LTC State Employees Long Term Care Insurance Plan

INDEPENDENT AUDITOR KPMG LLP 51 John F. Kennedy Parkway Short Hills, NJ 07078-2702

ACTUARIAL REPORTS BUCK CONSULTANTS 500 Plaza Drive Secaucus, NJ 07096-1533 MILLIMAN 1550 Liberty Ridge Drive Suite 200 Wayne, PA 19087-5572

2 New Jersey Division of Pensions and Benefits TABLE OF CONTENTS

INTRODUCTORY SECTION Letter of Transmittal ...... 11 All in a Year’s Work (Accomplishments in 2013) ...... 14 Organization ...... 15 Organization — Board of Trustees ...... 19 Significant Legislation ...... 21 Scope of Operations ...... 22 Membership ...... 26

FINANCIAL SECTION Index ...... 33 Independent Auditors’ Report ...... 35 Management’s Discussion and Analysis (unaudited) ...... 37 Basic Financial Statements Statement of Fiduciary Net Position — Fiduciary Funds ...... 43 Combining Statement of Fiduciary Net Position — Fiduciary Funds — Pension Trust and State Health Benefit Program Funds ...... 44 Statement of Changes in Fiduciary Net Position — Fiduciary Funds ...... 45 Combining Statement of Changes in Fiduciary Net Position — Fiduciary Funds — Pension Trust and State Health Benefit Program Funds ...... 46 Notes to Financial Statements (1) Description of the Funds ...... 47 (2) Summary of Significant Accounting Policies ...... 47 (3) Investments ...... 57 (4) Securities Lending Collateral ...... 64 (5) Contributions ...... 65 (6) Vesting and Benefits ...... 72 (7) Funds ...... 79 (8) Contingencies ...... 81 Schedules #1 Required Supplementary Information (Unaudited) — Schedule of Funding Progress ...... 82 #2 Required Supplementary Information (Unaudited) — Schedule of Employer Contributions ...... 87 #3 Schedule of Administrative Expenses ...... 90 #4 Schedule of Investment Expense ...... 91 #5 Schedule of Expenses for Consultants ...... 91 #6 Schedule of Fiduciary Net Position — Fiduciary Funds ...... 92 #7 Schedule of Changes in Fiduciary Net Position — Fiduciary Funds ...... 93 #8 Combining Schedule of Balance Sheet Information — Fiduciary Funds — Agency Funds ...... 94

New Jersey Division of Pensions and Benefits 3 TABLE OF CONTENTS

#9 Schedule of Changes in Fiduciary Net Position Information — Fiduciary Funds — Agency Funds ...... 95 #10 Combining Schedule of Fiduciary Net Position Information — State Health Benefit Program Fund — State ...... 96 #11 Combining Schedule of Changes in Fiduciary Net Position Information — State Health Benefit Program Fund — State ...... 97 #12 Combining Schedule of Fiduciary Net Position Information — State Health Benefit Program Fund — Local ...... 98 #13 Combining Schedule of Changes in Fiduciary Net Position Information — State Health Benefit Program Fund — Local ...... 99 #14 Combining Schedule of Fiduciary Net Position Information — State Health Benefit Program Fund — Education ...... 100 #15 Combining Schedule of Changes in Fiduciary Net Position Information — State Health Benefit Program Fund — Education ...... 101 #16 Combining Schedule of Balance Sheet Information — Agency Fund — Dental Expense Program ...... 102 #17 Combining Schedule of Changes in Fiduciary Net Position Information — Agency Fund — Dental Expense Program ...... 103 #18 Schedule of Changes in Assets and Liabilites Information — Agency Fund — Alternate Benefit Program Fund ...... 104 #19 Schedule of Changes in Assets and Liabilites Information — Agency Fund — Pension Adjustment Fund ...... 105 #20 Schedule of Changes in Assets and Liabilites Information — Agency Fund — Dental Expense Program — Total ...... 106 #21 Schedule of Changes in Assets and Liabilites Information — Agency Fund — Dental Expense Program — State ...... 107 #22 Schedule of Changes in Assets and Liabilites Information — Agency Fund — Dental Expense Program — Local ...... 108 #23 Combining Schedule of Fiduciary Net Postion Information — Fiduciary Funds — Select Pension Funds ...... 109 #24 Combining Schedule of Changes in Fiduciary Net Position Information — Fiduciary Funds — Select Pension Trust Funds ...... 110 #25 Common Pension Funds — Portfolio of Investments — Equities ...... 111 #26 Common Pension Funds — Portfolio of Investments — Fixed Income ...... 146 #27 Common Pension Funds — Portfolio of Investments — Alternative Investments and Global Diversified Credit Funds ...... 182 #28 Common Pension Funds — Portfolio of Investments — Derivatives ...... 187

4 New Jersey Division of Pensions and Benefits TABLE OF CONTENTS

INVESTMENT SECTION Reviews of Major Policy Issues ...... 191 State Investment Council — Key Regulations Pertaining to Pension Fund Assets ...... 192 Rate of Return ...... 193 Pension Fund Asset Allocation ...... 194 Pension Fund Composite Asset Allocation History (Graph) ...... 195 U.S. Equities Market — Portfolio Sector Weightings (Graph) ...... 196 International Equities Markets — Portfolio Sector Weightings (Graph) ...... 196 List of the Largest Assets Held ...... 197 Commission on Global Securities ...... 199 Schedule of Fees ...... 200

ACTUARIAL SECTION Public Employees’ Retirement System (PERS) Actuary’s Certification Letter ...... 203 Summary of Actuarial Assumptions and Methods ...... 206 Schedule of Retired Members and Beneficiaries Added to and Removed from Rolls ...... 210 Schedule of Active Member Valuation Data ...... 211 Solvency Test ...... 212 Analysis of Past Financial Experience ...... 213 Summary of Benefit and Contribution Provisions ...... 215 Teachers’ Pension and Annuity Fund of New Jersey (TPAF) Actuary’s Certification Letter ...... 221 Summary of Actuarial Assumptions and Methods ...... 224 Schedule of Retired Members and Beneficiaries Added to and Removed from Rolls ...... 233 Schedule of Active Member Valuation Data ...... 233 Solvency Test ...... 233 Analysis of Financial Experience ...... 234 Summary of Principal Plan Provisions ...... 235 Police and Firemen’s Retirement System (PFRS) Actuary’s Certification Letter ...... 240 Summary of Actuarial Assumptions and Methods ...... 243 Schedule of Retired Members and Beneficiaries Added to and Removed from Rolls ...... 246 Schedule of Active Member Valuation Data ...... 247 Solvency Test ...... 248 Analysis of Past Financial Experience — State ...... 249 Analysis of Past Financial Experience — Local ...... 250 Summary of Benefit and Contribution Provisions ...... 251

New Jersey Division of Pensions and Benefits 5 TABLE OF CONTENTS

State Police Retirement System (SPRS) Actuary’s Certification Letter ...... 254 Summary of Actuarial Assumptions and Methods ...... 257 Schedule of Retired Members and Beneficiaries Added to and Removed from Rolls ...... 260 Schedule of Active Member Valuation Data ...... 260 Solvency Test ...... 260 Analysis of Past Financial Experience ...... 261 Summary of Benefit and Contribution Provisions ...... 262 Judicial Retirement System (JRS) Actuary’s Certification Letter ...... 264 Summary of Actuarial Assumptions and Methods ...... 267 Schedule of Retired Members and Beneficiaries Added to and Removed from Rolls ...... 269 Schedule of Active Member Valuation Data ...... 269 Solvency Test ...... 269 Analysis of Past Financial Experience ...... 270 Summary of Benefit and Contribution Provisions ...... 271 Consolidated Police and Firemen’s Pension Fund (CPFPF) Actuary’s Certification Letter ...... 273 Summary of Actuarial Assumptions and Methods ...... 275 Schedule of Retired Members and Beneficiaries Added to and Removed from Rolls ...... 276 Schedule of Active Member Valuation Data ...... 276 Solvency Test ...... 276 Analysis of Past Financial Experience ...... 277 Summary of Benefit and Contribution Provisions ...... 278 Prison Officers’ Pension Fund (POPF) Actuary’s Certification Letter ...... 279 Summary of Actuarial Assumptions and Methods ...... 281 Schedule of Retired Members and Beneficiaries Added to and Removed from Rolls ...... 282 Schedule of Active Member Valuation Data ...... 282 Solvency Test ...... 282 Analysis of Past Financial Experience ...... 283 Summary of Benefit and Contribution Provisions ...... 284

6 New Jersey Division of Pensions and Benefits TABLE OF CONTENTS

Supplemental Annuity Collective Trust (SACT) Actuary’s Certification Letter ...... 285 Summary of Actuarial Assumptions and Methods ...... 287 Schedule of Retired Members and Beneficiaries Added to and Removed from Rolls ...... 288 Schedule of Active Member Valuation Data ...... 288 Solvency Test ...... 289 Analysis of Past Financial Experience ...... 289 Summary of Benefit and Contribution Provisions ...... 290 STATISTICAL SECTION Schedule of Retired Members By Type of Benefit ...... 295 Schedule of Revenues By Source ...... 296 Schedule of Expense By Type ...... 298 Schedule of Changes in Net Assets ...... 300 Participating County and Municipal Employers ...... 302 Participating Education Employers ...... 305 Participating Agencies and Authorities ...... 309 Participating State Departments and Pension Funds ...... 311

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8 New Jersey Division of Pensions and Benefits INTRODUCTORY SECTION 10 New Jersey Division of Pensions and Benefits Mailing Address: PO Box 295 Trenton, NJ 08625-0295 Location: 50 West State Street Trenton, New Jersey State of New Jersey DEPARTMENT OF THE TREASURY DIVISION OF PENSIONS AND BENEFITS (609) 292-7524 TDD (609) 292-7718 www.state.nj.us/treasury/pensions

LETTER OF TRANSMITTAL CHRIS CHRISTIE February 2014 Governor To the Honorable Chris Christie, Governor Andrew P. Sidamon-Eristoff, State Treasurer Members of the Legislature Members of the Boards of Trustees On behalf of the Division of Pensions and Benefits, I am pleased to submit the 58th Comprehensive Annual Financial Report (CAFR) of the New Jersey State-administered retirement systems and related benefit programs for the fiscal year ended June 30, 2013. The management of the Division of Pensions and Benefits (the Division) is responsible for the accuracy of the data and the completeness and fairness of the presentation. To the best of my knowledge and belief, the enclosed information is accurate in all material respects and is reported in a manner that fairly represents the financial position and results of the Division’s operations.

ANDREW P. THE REPORTING ENTITY SIDAMON-ERISTOFF The Division was established in 1955 as the Division of Pensions to provide State Treasurer all administration of the state pension funds except investments. The Division changed its name to the Division of Pensions and Benefits in 1992 to more accurately reflect its roles and responsibilities beyond the realm of pensions. Currently, the Division administers one of the largest non-federal public benefits program in the nation, consisting of ten separate retirement systems, three supplemental retirement savings programs, two health benefits programs for employees, retirees, and family members, and several other employee benefits programs. Over 792,986 members enjoy the benefits of the various pension systems administered by the Division, and over 882,000 lives are covered in the State Health Benefits Program (SHBP) and the School Employees’ Health Benefits Program (SEHBP). In addition to the State, 1,793 local public employers participate in the retirement systems, and 1,126 local employers participate in the SHBP and SEHBP. CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING FLORENCE J. SHEPPARD The Government Finance Officers Association of the United States and Acting Director, Canada (GFOA) recognized the Division’s CAFR of last year for Excellence in Division of Pensions Financial Reporting. A copy of the Certificate of Achievement is included in and Benefits this CAFR.

New Jersey Division of Pensions and Benefits 11 LETTER OF TRANSMITTAL

MAJOR INITIATIVES Pension and health benefit reform legislation enacted in the first term continued to be a driving force for the Division in 2013. Pension reforms enacted pursuant to Chapter 78, P.L. 2011 included provisions creating special Pension Plan Design Committees that will have the discretionary authority to modify certain plan design features. A total of six Pension Plan Design Committees can be formed: two each for the PERS and PFRS, representing the State and local components of these plans, and one committee each for the TPAF and the SPRS. The State House Commission will assume the design committee responsibilities for the JRS. Members of the committees cannot be appointed to the Design Committees until the pension plan, or part of the plan, attains the target funded ratio (TFR). Three plans, or parts of the plans, attained the 75 percent TFR in fiscal year 2012, as reflected in the revised July 1, 2010 actuarial reports of the pension plans. These plans were: PERS-Local, PFRS-Local and the SPRS. As a result, these three formed and held their first meetings but took no action based on 30 year projections provided indicating that implementation of any benefit improvements including reactivation of the COLA is not possible at this time or the foreseeable future because any changes would result in the diminishment of the funding ratio below the TFR. Pursuant to a November amendment to Article VI, Section VI, Paragraph 6 of the New Jersey Constitution, employee pension and health benefit contribution rates for members of the Judicial Retirement System (JRS) increased as of the first State Biweekly Pay Period of 2013. The increase in the JRS pension contributions was calculated as follow: • For JRS members enrolled into the retirement system on or after January 1, 1996, the pension contribution rate increased to 5.56% of all compensation. • For JRS members enrolled into the retirement system before January 1, 1996, the pension contribution was calculated using one rate for the compensation of the member’s current position as of January 18, 1982, and a separate rate for the balance of the member’s compensation in excess of the January 18, 1982, compensation. The employee contribution rates for this group were 2.56% for the compensation as of January 18, 1982, and 5.56% for any compensation exceeding the January 18, 1982, compensation. Chapter 78 calls for JRS employee pension contribution rates to increase by 1.28% a year over 7 years until a total additional pension contribution rate of 9% is reached as of July 2017 — making the full contribution rate 12% for JRS members enrolled into the retirement system on or after January 1, 1996. The 2.56% contribution rate for compensation as of January 18, 1982 and 5.56% contribution rate for any compensation exceeding the January 18, 1982 compensation represents the second year of phased-in rate increases under the provisions of Chapter 1. The third year contribution rate increase of an additional 1.28% will begin with the first payroll of July 2013. In other developments, the Division, in cooperation with the Division of Purchase and Property, initiated a Medical Plan RFP with a contract effective date of January 1, 2013. In conjunction with the RFP, the Joint Plan Design Committees for the SHBP and the SEHBP established two additional PPO plans and two additional HMO plans for each benefit administrator plus four high deductible health plans. Over 7,000 members elected one of the new plans and of that number, 250 elected the high deductible plans. The Division continued its efforts to provide additional automated and self-service processing opportunities to both the members and employers of the State-administered retirement systems. Notably, effective October 1, 2012, all new retirement applications were required to be filed through our Member Benefits Online System (MBOS). An Online Guide to Retirement was launched on our Web site on January 18, 2013 to help prospective applicants through this process. The existing hardware and software for the Interactive Voice Response System (IVR) was replaced and the new system shares hardware and software resources with the Department of Labor. The IVR system provides members and employers with the ability to obtain pension and health plan information, and process a loan and other transactions over the telephone. As result of this major initiative, in early 2013 the IVR became the point of entry for members calling the Division. From there a number of self-service options are available, or, if the member chooses, they will be transferred to the call center to speak with a counselor.

12 New Jersey Division of Pensions and Benefits LETTER OF TRANSMITTAL

The WEB Enhancement Project involved two components; 1) an upgrade to the Division’s static web pages, and 2) an upgrade to the inquiry and transactional web pages of Employer Pension Information Connection (EPIC) and Member Benefits Online System (MBOS). This project has resulted in the enhancement of 26 sub-application components. FINANCIAL INFORMATION The Financial reports of the Fiduciary Funds of the Division have been prepared in conformity with generally accepted accounting principles as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for governmental accounting and financial reporting. The specific accounting policies can be found in the Notes to the Financial Statements found in the Financial Section. The Fiduciary Funds include twelve separate pension trust funds, three health benefit program funds, and three agency funds. A summary of the condition of the funds administered by the Division of Pensions and Benefits is located in the “Management Discussion and Analysis” that begins on page 37 of the CAFR. Management is responsible for establishing and maintaining the accounting systems complete with internal controls so that the data presented is complete and fairly presents the financial position of the Division as of June 30, 2013. KPMG LLP independently audited the funds. INVESTMENTS The Division of Investment has the responsibility for investing the assets of the programs administered by the Division. This is done under the jurisdiction of the State Investment Council. Investments are guided by the “prudent person rule”. During FY 2013 investment returns on pension funds were +11.78 percent. When combined with the returns for previous years, the annualized returns over the past three, five and ten-year periods were +10.59 percent, +5.32 percent, and +7.26 percent, respectively. FUNDING A fully funded system that has assets sufficient to meet the retirement benefit schedules is one that instills confi- dence and trust. While employer funding obligations have been difficult to meet over the past several years due to conflicting budgetary priorities, the enactment of Chapter 1, P.L. 2010 and Chapter 78, P.L. 2011 have charted a long term path which is projected to result in improved funded levels over a thirty year period. PROFESSIONAL SERVICES The Division contracts with several professional organizations for advice and assistance in administering the programs for which it is responsible. The list of these organizations is found on page 91 of the CAFR. The Office of the Attorney General provides all legal services required by the Division of Pensions and Benefits and the retirement system Boards of Trustees. ACKNOWLEDGEMENTS The preparation of the CAFR required the combined efforts of many employees from different operational units within the Division. The CAFR is intended to provide extensive and reliable information to facilitate informed deci- sions, determine compliance with legal requirements, and determine responsible stewardship for the assets contributed by the systems’ members, participating employers, and the taxpayers of the State. I would like to take this opportunity to express my gratitude to the Governor, the Legislature, the Treasurer, the Boards of Trustees, the individuals providing professional services, participating employer benefits administrators, and to the outstanding employees of the Division for all their efforts and support. Such concerted effort has resulted in making New Jersey’s public benefits system one of the largest and best administered in the nation. Respectfully submitted,

Florence J. Sheppard, Acting Director

New Jersey Division of Pensions and Benefits 13 ALL IN A YEAR’S WORK…

• There are 415,691 ACTIVE MEMBERS in the combined retirement systems. • There are 1,793 PARTICIPATING EMPLOYERS in the combined retirement systems; 13 NEW EMPLOYERS began participating this year. • There are 422,793 INDIVIDUAL RETIREMENT SYSTEM MEMBER ACCOUNTS being maintained; 11,402 MEMBER ACCOUNTS were audited internally. • A total of 293,337 RETIREES AND BENEFICIARIES received monthly pensions totaling in excess of $8.8 BILLION annually. • Over 37,137 BENEFICIARY CLAIMS were processed. Premiums in excess of $234 MILLION were paid to the insurance carrier on behalf of active and retired members. • Over 930,000 TELEPHONE CALLS calls were handled by the Interactive Voice Response System (IVR). Phone representatives handled over 315,000 calls. • 15,992 PERSONAL INTERVIEWS were conducted by pension counselors. • 160 SEMINARS AND WEBINARS were conducted for over 3,420 MEMBERS. • 11,221 SERVICE PURCHASE REQUESTS were processed. • 29,107 NEW ENROLLMENTS OR TRANSFERS were processed in our retirement systems. • There were 9,230 WITHDRAWALS from the retirement systems. • 15,208 MEMBERS RETIRED. • Over 107,525 PENSION LOANS totaling $549,711,702 were processed. • State and local membership in the State Health Benefits Program and School Employees’ Health Benefits Program was 408,575 MEMBERS with 881,626 LIVES COVERED. • A total of over $5.5 BILLION IN PREMIUMS was collected from State and local State Health Benefits Program employers, School Employees’ Health Benefits Program employers, and combined employees. 1,126 LOCAL EMPLOYERS elected to participate in the SHBP or SEHBP this year.

14 New Jersey Division of Pensions and Benefits ORGANIZATION

EXECUTIVE MANAGEMENT TEAM

Seated, Front Row (left to right): Susanne Culliton, Assistant Director, Professional Services and Board of Trustees; Florence J. Sheppard, Acting Director; John D. Megariotis, Deputy Director, Finance Back Row (left to right): Frank Corliss, Assistant Director, Management Information Systems; Janice F. Nelson, Assistant Director, Client Services and Benefit Operations; David Pointer, Assistant Director, Health Benefits and Publications

FLORENCE J. SHEPPARD

ACTING DIRECTOR

DIVISION OF PENSIONS AND BENEFITS

JANICE F. NELSON SUSANNE CULLITON FRANK CORLISS DAVID POINTER JOHN D. ASSISTANT ASSISTANT ASSISTANT ASSISTANT MEGARIOTIS DIRECTOR DIRECTOR DIRECTOR DIRECTOR DEPUTY DIRECTOR CLIENT SERVICES PROFESSIONAL MANAGEMENT HEALTH BENEFITS & BENEFIT FINANCE SERVICES & BOARD INFORMATION AND PUBLICATIONS OPERATIONS OF TRUSTEES SYSTEMS

New Jersey Division of Pensions and Benefits 15 ORGANIZATION

CHIEFS AND MANAGERS Seated, First Row (left to right): Mary Ann Ryan – Client Services; Joseph Zisa – Defined Benefit and Contribution Plans; Wendy Jamison – Boards of Trustees;

Second Row (left to right): Peter Mullings - Administrative Services; Timothy McMullen – Budget and Compliance; Michael Weik – Operations; Francis Peterson — Financial Reporting, Payments, and Collections;

Absent: Mark Schwedes - Enrollments and Purchases

DIRECTOR OFFICE OF OPERATIONS The Director is responsible for the coordination of the The work of this office, overseen by a Deputy Director, functions of the Division, the development of the Division is divided among three bureaus: Enrollment and budget, and communication with other branches of State Purchase; Claims; and Retirement. government, local government, and the public. The Director serves as the Secretary to the Supplemental The Enrollment and Purchase Bureau processes all Annuity Collective Trust Council, the State Health enrollments, transfers, and purchases of service credit Benefits Commission, and the State House Commission for all of the State retirement systems. The Claims in its capacity as the Board of Trustees for the Judicial Bureau processes all death claims, withdrawals, and Retirement System. The Director is also responsible for loan requests. In addition, this bureau oversees benefi- legal and legislative matters and Board of Trustees ciary designations filed by active and retired members administration. In addition, the Treasurer has delegated and issues group life insurance policies, riders, and the responsibility of maintaining the Federal-State special endorsements. The Retirement Bureau pre- Agreement for Social Security to the Director of the pares retirement estimates and processes retirement Division of Pensions and Benefits. applications for all of the State retirement systems. The Division of Pensions and Benefits falls under the OFFICE OF HEALTH BENEFITS jurisdiction of the New Jersey Department of the This office, overseen by a Deputy Director, consists of Treasury. The Director of the Division of Pensions and two elements: the Health Benefits Bureau and the Benefits reports directly to the State Treasurer. Office of Policy Planning. The Health Benefits Bureau

16 New Jersey Division of Pensions and Benefits ORGANIZATION

processes all enrollments, changes, and terminations health benefits to employees, employers, and retirees. for active and retired members of the State Health This unit is also responsible for providing receptionist Benefits Program. In addition, this bureau is responsi- services for the entire Division. The Publications Unit ble for the administration of benefits under the federal exercises overall responsibility for creating, editing, COBRA law, and enrollments, changes, and termina- updating, and printing of written materials disseminated tions for members of the Prescription Drug Plan and by the Division, including manuals, reports, forms, ben- State Employee Dental Program. The Office of Policy efits statements, and booklets. This unit also manages and Planning analyzes and makes recommendations the Division’s Internet site. concerning current and proposed health benefits programs to provide the highest quality programs at the OFFICE OF MANAGEMENT INFORMATION least possible cost. It manages contract renewals and AND SUPPORT SERVICES requests for proposals. Policy and Planning is responsi- The work of this office, overseen by an Assistant ble for health benefit program review and development. Director, is responsible for the development and main- This office also provides administrative support to the tenance of all processing and management information State Health Benefits Commission. systems for the Division. This office also has the OFFICE OF FINANCIAL SERVICES responsibility for the training, usage, and maintenance of all automated office and telephone equipment. The work of this office, overseen by a Deputy Director, is divided among three bureaus: Financial Reporting, This office consists of five sections: Image Processing Payment, and Collections; Budget and Compliance; and Records Management; Data Entry; Computer and Defined Benefit and Contribution Plans Reporting. Scheduling and Production Control; Systems Development; and Support Services. The Office of Financial Services is charged with the custodianship of pension and health benefits assets. The Support Services section has the responsibility for These assets are in excess of $81.9 billion and include the building and equipment, mail room, warehouse over 792,986 individual member accounts. The office is operations, and forms inventory. responsible for the accounting and budget functions OFFICE OF PROFESSIONAL SERVICES necessary for the successful operations of the various pension funds, health benefits and agency funds, as The Office of Professional Services is located within the well as the administration of the Pension Adjustment Director’s Office and operates under the direction of an Program, the Supplemental Annuity Collective Trust, Assistant Director. It is responsible for providing a struc- and Deferred Compensation Plan. tured and consistent planning function for the Division, analyzing proposed legislation for its fiscal and policy OFFICE OF CLIENT SERVICES impacts, maintaining the regulatory documentation for This office, overseen by a Deputy Director, consists of Division programs, managing the development of con- three units: Telecommunications; Counseling, Education, tracts with external service providers, and conducting and Support; and Publications. Client Services dissemi- research in support of Division activities. nates pension, life insurance, and health benefits infor- OFFICE OF BOARD OF TRUSTEES mation to employees, retirees, and employers covered ADMINISTRATION by the various New Jersey State-administered retirement systems and benefit programs. The Office of Board of Trustees Administration, under the direction of an Assistant Director, provides adminis- The Telecommunications Unit counsels employees, trative services for the various defined benefit plans’ retirees, and employers via the telephone by providing Boards and Commissions. information about pension, life insurance, health benefits, and general procedures. The Counseling, The Boards and Commissions have the general Education, and Support Unit responds to written responsibility for the proper operation of their respec- requests for information, conducts personal interviews tive employee benefits program. The Boards adopt with employees and retirees who visit the Division of rules in compliance with statute and advice of the Pensions and Benefits, and provides seminars, employ- Attorney General. The Boards may grant hearing in dis- er group meetings, employer instructions, and various putes concerning issues of law or fact. Hearings are presentations concerning pension, life insurance, and held by the Office of Administrative Law.

New Jersey Division of Pensions and Benefits 17 ORGANIZATION

The Boards maintain a record of all proceedings and LEGAL ADVISOR hold regular meetings and special meetings when necessary. The State Attorney General is the legal advisor for all pension funds and other employee benefit programs. ACTUARIAL ADVISORS MEDICAL ADVISORS The actuaries establish actuarial tables for the operation of the retirement systems, determine the annual All pension funds are served by a medical board con- appropriation required of participating employers and sisting of three physicians who review claims for disabil- conduct annual examinations of the systems’ actuarial ity as submitted by the Disability Review Section of the position. Retirement Bureau for the Division of Pensions and Benefits. Contracts for actuarial services for the retirement systems are awarded at specified intervals through the regulations governing the procurement of goods and services for the State of New Jersey and its constituent departments and agencies.

18 New Jersey Division of Pensions and Benefits ORGANIZATION — BOARDS OF TRUSTEES

PUBLIC EMPLOYEES’ RETIREMENT SYSTEM Seated: Suzanna Buriani-DeSantis (l to r) Thomas Bruno Leon Flanagan, Chairperson Susanne Culliton, State Treasurer’s Representative

Standing: Ronald Winthers (l to r) Jackie Bussanich, Administrative Assistant Benjamin (Max) Hurst William O’Brien Kellie Kiefer-Pushko, Deputy Attorney General Edward (Ned) Thomson, III Hank Schwedes, Board Secretary

TEACHERS’ PENSION AND ANNUITY FUND Seated: Martha Liebman (l to r) James Joyner, Chairperson Standing: H. O’Neill Williams (l to r) Erland Nordstrom Susanne Culliton, State Treasurer’s Representative Paul Orihel Mary Ellen Rathbun, Board Secretary Robert Kelly, Deputy Attorney General Jackie Bussanich, Administrative Assistant

POLICE AND FIREMEN’S RETIREMENT SYSTEM Seated: Vincent Foti (l to r) Susanne Culliton, State Treasurer’s Representative Wayne Hall, Chairperson Wendy Jamison, Board Secretary Standing: Marty Barrett (l to r) Tim Colacci Lisa Pointer, Administrative Assistant Frank Leake Kellie Kiefer-Pushko, Deputy Attorney General John Sierchio Michael Postorino Absent: Laurel Brennan Richard Loccke

New Jersey Division of Pensions and Benefits 19 ORGANIZATION — BOARDS OF TRUSTEES

STATE POLICE RETIREMENT SYSTEM Seated: Major Patrick Callahan (l to r) Wendy Jamison, Board Secretary Major Brian McPherson, Chairperson

Standing: Lisa Pointer, Administrative Assistant (l to r) Susanne Culliton, State Treasurer’s Representative Diane Weeden, Deputy Attorney General Absent: Jack Sayers

SUPPLEMENTAL ANNUITY COLLECTIVE TRUST COUNCIL John Megariotis, Chairperson, Representing Andrew P. Sidamon-Eristoff, Treasurer, State of New Jersey Leslie Notor, Representing Charlene Holzbaur, Director, Office of Management and Budget Felix Schirripa, Representing Kenneth E. Kobylowski, Commissioner, Department of Banking and Insurance

DEFERRED COMPENSATION BOARD David Ridolfino, Chairperson, Representing Andrew P. Sidamon-Eristoff, Treasurer, State of New Jersey Leslie Notor, Representing Charlene Holzbaur, Director, Office of Management and Budget Felix Schirripa, Representing Kenneth E. Kobylowski, Commissioner, Department of Banking and Insurance

DEFINED CONTRIBUTION RETIREMENT PROGRAM BOARD Joseph Zisa, Chairperson, Representing Florence J. Sheppard, Acting Director, Division of Pensions and Benefits Sonia Rivera-Perez, Representing Charlene Holzbaur, Director, Office of Management and Budget Felix Schirripa, Representing Kenneth E. Kobylowski, Commissioner, Department of Banking and Insurance Timothy Walsh, Director, Division of Investment

STATE HEALTH BENEFITS COMMISSION Andrew P. Sidamon-Eristoff, State Treasurer, Chairperson Kenneth E. Kobylowski, Commissioner, Department of Banking and Insurance Robert Czech, Chair, Civil Service Commission Florence J. Sheppard, Secretary Patrick Nowlan, State Employees’ Representative of the AFL-CIO Dudley Burdge, Local Employees’ Representative of the AFL-CIO

SCHOOL EMPLOYEES’ HEALTH BENEFITS COMMISSION David Earling, Chairperson Andrew P. Sidamon-Eristoff, Treasurer, State of New Jersey Kenneth E. Kobylowski, Acting Commissioner, Department of Banking and Insurance Cynthia Jahn, Representing the NJ School Boards Association Florence J. Sheppard, Secretary Kevin Kelleher, Representing the NJEA Wendell Steinhauer, Representing the NJEA Joseph Del Grosso, Representing the AFL-CIO

20 New Jersey Division of Pensions and Benefits SIGNIFICANT LEGISLATION

Chapter 50, P.L. 2013 The requirement to provide this coverage is conditioned on two factors: (1) the prescribing health care practi- Effective Date: This law takes effect on the 90th day tioner indicates on the original prescription that addi- after enactment (August 4, 2013). tional quantities of the prescription eye drops are Description: This law requires, in certain circum- needed; and (2) the refill requested does not exceed stances, health insurers (health, hospital and medical the number of additional quantities indicated on the service corporations, commercial individual and group original prescription by the prescribing health care health insurers; health maintenance organizations, practitioner. health benefits plans issued pursuant to the New The Centers for Medicaid and Medicare Services Jersey Individual Health Coverage and Small Employer issued guidance on topical ophthalmics to prevent the Health Benefits Programs, the State Health Benefits unintended interruption of drug therapy in situations in Program, and the School Employees’ Health Benefits which patients legitimately need earlier refills of pre- Program) that provide coverage for prescription eye scription eye drops. While the guidance acknowledges drops, to provide health benefits coverage for expens- that health insurers monitor appropriate refill periods as es incurred for a refill of prescription eye drops in accor- part of utilization management, the guidance also rec- dance with Guidance for Early Refill Edits on Topical ognizes that the self-administration of prescription eye Ophthalmic Products provided to Medicare Part D plan drops may involve some reasonable amount of waste sponsors by the Centers for Medicare and Medicaid and that earlier refills may be appropriate in some cir- Services. cumstances.

New Jersey Division of Pensions and Benefits 21 SCOPE OF OPERATIONS

PUBLIC EMPLOYEES RETIREMENT SYSTEM STATE POLICE RETIREMENT SYSTEM (SPRS) (PERS) This system was created by Chapter 89, P.L.1965 as a This system was established by Chapter 84, P.L.1954, successor to the State Police Retirement and after the repeal of the law creating the former State Benevolent Fund. All uniformed officers and troopers of Employees’ Retirement System. The retirement bene- the Division of State Police in the New Jersey fits of this system are coordinated, but not integrated Department of Law and Public Safety are required to with, Social Security. This system is maintained on an enroll. This system is maintained on an actuarial actuarial reserve basis. Under the terms of Chapter 71, reserve basis. P.L. 1966, most public employees in New Jersey not required to become members of another contributory Statutes can be found in the New Jersey Statutes retirement program are required to enroll. Annotated, Title 53, Chapter 5A. Rules governing the operation and administration of the system may be Statutes can be found in the New Jersey Statutes found in Title 17, Chapter 5 of the New Jersey Annotated, Title 43, Chapter 15A. Rules governing the Administrative Code. operation and administration of the fund may be found in Title 17, Chapter 2 of the New Jersey Administrative JUDICIAL RETIREMENT SYSTEM (JRS) Code. This system was established by Chapter 140, P.L.1973 TEACHERS’ PENSION AND ANNUITY FUND (TPAF) after the repeal of the laws providing pension benefits to members of the State judiciary and their eligible sur- This fund was reorganized by Chapter 37, P.L. 1955. vivors. All members of the State judiciary are required The retirement benefits of this system and coordinated, to enroll. The system is maintained on an actuarial but not integrated with, Social Security. This reserve basis. fund is maintained on an actuarial reserve basis. Membership is mandatory for substantially all teachers Statutes can be found in the New Jersey Statutes or members of the professional staff certified by the Annotated, Title 43, Chapter 6A. Rules governing the State Board of Examiners, and employees of the operation and administration of the system may be Department of Education who have titles that are found in Title 17, Chapter 10 of the New Jersey unclassified, professional, and certified. Administrative Code. Statutes can be found in the New Jersey Statutes DEFINED CONTRIBUTION Annotated, Title 18A, Chapter 66. Rules governing the RETIREMENT PROGRAM (DCRP) operation and administration of the system may be This program was established July 1, 2007 under the found in Title 17, Chapter 3 of the New Jersey provisions of Chapter 92, P.L. 2007 and Chapter 103, Administrative Code. P.L. 2007, and expanded under the provisions of POLICE AND FIREMEN’S RETIREMENT SYSTEM Chapter 89, P.L. 2008 and Chapter 1, P.L. 2010. The (PFRS) program is a tax-qualified defined contribution money purchase pension plan under Internal Revenue Code This system was established by Chapter 255, P.L. (IRC) §401(a) et seq., and is a “governmental plan” 1944. All police officers and firefighters, appointed after within the meaning of IRC §414(d). Eligible members June 1944, in municipalities where local police and fire are provided with a tax-sheltered, defined contribution pension funds existed or where this system was adopt- retirement benefit, along with life insurance and disabil- ed by referendum or resolution are required to become ity coverage. Individuals eligible for membership members of this system. Certain State and county include State or Local Officials who are elected or employees are also covered. Employer obligations are appointed on or after July 1, 2007; employees enrolled paid by the local employers and the State. This system in the PERS or TPAF on or after July 1, 2007 who earn is maintained on an actuarial reserve basis. salary in excess of established “maximum compensation” limits, employees enrolled in the PFRS or SPRS Statutes can be found in the New Jersey Statutes after May 21, 2010 who earn salary in excess of estab- Annotated, Title 43, Chapter 16A. Rules governing the lished “maximum compensation” limits; and employees operation and administration of the system may be otherwise eligible to enroll in the PERS or TPAF on or found in Title 17, Chapter 4 of the New Jersey after November 2, 2008, who do not earn the minimum Administrative Code.

22 New Jersey Division of Pensions and Benefits SCOPE OF OPERATIONS

annual salary required for PERS or TPAF Tier 3 enroll- The liabilities of these local funds were shared: two- ment or do not work the minimum hours per week thirds by the participating municipalities and one-third required for PERS or TPAF Tier 4 enrollment. by the State. Statutes can be found in the New Jersey Statutes Statutes can be found in the New Jersey Statutes Annotated, Title 43, Chapter 15C, Article 1 et seq. Annotated, Title 43, Chapter 16. Rules governing the operation and administration of this fund may be found ALTERNATIVE BENEFIT PROGRAM (ABP) in Title 17, Chapter 6 of the New Jersey Administrative This program was established by several pieces of leg- Code. islation between 1965 and 1968 for full-time faculty NEW JERSEY STATE EMPLOYEES DEFERRED members of public institutions of higher education. It COMPENSATION PLAN (NJSEDCP) was later expanded to include certain administrative and professional titles. This plan was established by Chapter 39, P.L.1978 and is available to any State employee who is a member of Chapter 385, P.L.1993 increased the number of invest- a State-administered retirement system. This plan is a ment carriers to six. The investment carriers underwrit- voluntary investment program that provides retirement ing annuities are as follows: VALIC; AXA Financial income separate from and in addition to the basic pen- (Equitable); The Hartford; ING Life Insurance and sion benefit. Annuity Co.; MetLife (formerly Travelers/CitiStreet); and the Teachers Insurance and Annuity Statutes can be found in the New Jersey Statutes Association/College Retirement Equitites Fund Annotated, Title 52, Chapter 18A. (TIAA/CREF). The ABP is a “defined contribution” plan Prudential Retirement was selected as the NJSEDCP's as distinguished from “defined benefits” payable by the third-party administrator on August 26, 2005. The other State retirement systems. Immediate vesting after Division of Pensions and Benefits maintains its admin- the first year of participation offers the mobility of pen- istrative oversight functions. sion credit among the private and public institutions of higher education in the United States and Canada. SUPPLEMENTAL ANNUITY COLLECTIVE TRUST Group life insurance and long-term disability insurance (SACT) are underwritten by the Prudential Insurance Company This trust was established by Chapter 123, P.L. 1963. of America, Inc. This program includes active members of several Statutes can be found in the New Jersey Statutes State-administered retirement systems. Members make Annotated, Title 18A, Chapter 66. Rules governing the voluntary additional contributions through their pension operation and administration of this program may be funds to purchase variable retirement annuities in order found in Title 17, Chapter 7 of the New Jersey to supplement the benefits provided by their basic sys- Administrative Code. tem. Some employers agree to purchase tax-sheltered annuities for the same purpose for certain eligible PRISON OFFICERS’ PENSION FUND (POPF) employees. This fund was established under Chapter 220, P.L. Statutes can be found in the New Jersey Statutes 1941. It was closed to new employees as of January Annotated, Title 52, Chapter 18A. Rules governing the 1960. New employees are enrolled in the Police and operation and administration of the trust may be found Firemen’s Retirement System. This system is not main- in Title 17, Chapter 8 of the New Jersey Administrative tained on an actuarial reserve basis. Code. Statutes can be found in the New Jersey Statutes ADDITIONAL CONTRIBUTIONS Annotated, Title 43, Chapter 7. TAX-SHELTERED PROGRAM (ACTS) CONSOLIDATED POLICE AND This program was established in 1996. ACTS is a tax- FIREMEN’S PENSION FUND (CPFPF) sheltered, supplemental, retirement program pursuant This fund was established by Chapter 358, P.L.1952, to to Section 403(b) of the federal Internal Revenue Code place 212 local police and fire pension funds on an offered to employees of institutions of higher education, actuarial reserve basis. The membership consists of the Commission of Higher Education, the Department police and firefighters appointed prior to July 1, 1944. of Education, and the Office of Student Assistance. The

New Jersey Division of Pensions and Benefits 23 SCOPE OF OPERATIONS

eligible employees are able to obtain tax-deferred STATE HEALTH BENEFITS PROGRAM (SHBP) annuities with a variety of investment carriers through a salary reduction agreement. The annuities are available The program provides medical coverage to employees, from the same investment carriers who service the retirees, and their dependents. Chapter 125, P.L. 1964 Alternate Benefit Program. extended the program to include employees of local government. The program includes a preferred provider Statutes can be found in the New Jersey Statutes organization (NJ DIRECT) and two HMO plans (Aetna Annotated, Title 52, Chapter 18A, Section 113. HMO and CIGNA HealthCare). A small group of State employees are covered under legacy plans — the CENTRAL PENSION FUND (CPF) indemnity type plan (Traditional Plan) and a point-of- This fund consists of the administration of a series of service plan (NJ PLUS). noncontributory pension acts. No reserves are estab- Statutes can be found in the New Jersey Statutes lished for the payment of retirement benefits. These Annotated, Title 52, Chapter 14, Article 17.25 et seq. benefits are administered by the Division in accordance Rules governing the operation and administration of the with the governing statute and the rules and regulations program can be found in Title 17, Chapter 9 of the New of the State House Commission. Jersey Administrative Code. PENSION ADJUSTMENT FUND (PAF) SCHOOL EMPLOYEES’ This fund was established pursuant to Chapter 143, HEALTH BENEFITS PROGRAM (SEHBP) P.L. 1958 and covers all eligible pensions of State- The program provides medical coverage to local educa- administered retirement systems. It was altered by tion employees, retirees, and their dependents. Chapter Chapter 169, P.L. 1969, which provided a cost-of-living 103, P.L. 2007 established the program which includes adjustment and by Chapter 139, P.L. 1971 which a preferred provider organization (NJ DIRECT) and two extended its provisions to eligible survivors. HMO plans (Aetna HMO and CIGNA HealthCare). Statutes can be found in the New Jersey Statutes Statutes can be found in the New Jersey Statutes Annotated, Title 52, Chapter 18A. Rules governing the Annotated, Title 52, Chapter 14, Article 17.46 et seq. operation and administration of the fund may be found Rules governing the operation and administration of the in Title 17, Chapter 1 of the New Jersey Administrative program can be found in Title 17, Chapter 9 of the New Code. Jersey Administrative Code. UNEMPLOYMENT COMPENSATION AND TEMPORARY DISABILITY INSURANCE FOR STATE EMPLOYEES (UC/TDI) The Division of Pensions and Benefits coordinates the work related to the payment of the charges involving unemployment compensation and temporary disability insurance benefits for State employees eligible for coverage under federal law. It is responsible for contracting with a service agency to review all questionable claims for unemployment compensation.

24 New Jersey Division of Pensions and Benefits SCOPE OF OPERATIONS

PRESCRIPTION DRUG PLAN (PDP) ed from their pay for medical expenses not reimbursed by their medical or dental insurance; and the This plan was initiated by the State effective December Dependent Care Spending Account that allows employ- 1, 1974. The passage of Chapter 41, P.L.1976 extend- ees to use up to $5,000 pre-tax dollars annually deducted coverage to all eligible State employees. The State ed from their pay for dependent care expenses required Health Benefits Commission offered the plan to local to permit the employee and spouse to work. employers on July 1, 1993. Employees and their eligible dependents are covered by the plan in the same man- Statutes can be found in the New Jersey Statutes ner as the State Health Benefits Program. The Division Annotated, Title 52, Chapter 14, Article 15.1a. Rules of Pensions and Benefits became responsible for plan governing the Tax$ave can be found in Title 17, Chapter administration in November 1976. 1, Subchapter 13 of the New Jersey Administrative Code. Statutes can be found in the New Jersey Statutes Annotated, Title 52, Chapter 14, Section 17.29(F). COMMUTER TAX$AVE Rules governing the operation and administration of the program can be found in Title 17, Chapter 9, of the New This program, authorized by Chapter 162, P.L. 2001 Jersey Administrative Code. and available under Section 132(f) of the federal Internal Revenue Code, allows eligible State employ- EMPLOYEE DENTAL PLANS (EDP) ees to use before-tax dollars to pay for qualified commuter expenses. Under the program, eligible This program was initially established February 1, 1978 employees may execute salary reduction agreements and further expanded in June 1984. Eligible State and to have up to $230 per month ($2,760 per year) deduct- certain local employees may enroll for themselves and ed from salary to pay for mass transit commutation their eligible dependents by paying the premium calcu- costs and $230 per month ($2,760 per year) to pay for lated to meet half the cost of the plan. Plans offered parking at work or at park and ride sites. The program include the Dental Expense Plan, a traditional indemni- was implemented in February 2004. ty plan, and a selection of Dental Plan Organizations. Statutes can be found in the New Jersey Statutes Statutes can be found in the New Jersey Statutes Annotated, Title 52, Chapter 14, Article 17.33. Rules Annotated, Title 52, Chapter 14, Section 17.29(F). governing Commuter Tax$ave can be found in Title 17, Rules governing the operation and administration of the Chapter 1, Subchapter 14 of the New Jersey program may be found in Title 17, Chapter 9, of the Administrative Code. New Jersey Administrative Code. STATE EMPLOYEES TAX$AVE LONG TERM CARE INSURANCE PLAN The State Employees Tax Savings Program (Tax$ave) This plan is a participant-pay-all benefit available to was initially established for State Employees in July State employees, retirees, and family members. The 1996 and authorized under Section 125 of the Internal Prudential Insurance Company administers the insur- Revenue Code. The benefit consists of three compo- ance plan under contract with the State. The initial offer- nents: the Premium Option Plan that allows employees ing of the benefit was effective July 1, 2003. to use pre-tax dollars deducted from their pay for health or dental benefit premiums they may be required to pay Statutes can be found in the New Jersey Statutes for coverage; the Flexible Spending Account for Annotated, Title 52, Chapter14, Article 15.9a and Title Unreimbursed Medical Expenses that allows employ- 34, Chapter 11, Article 4.4b(10). ees to use up to $2,500 pre-tax dollars annually deduct-

New Jersey Division of Pensions and Benefits 25 MEMBERSHIP

ACTIVE MEMBERSHIP RETIREMENT SYSTEM 2012 2013

Public Employees’ Retirement System 285,710* 279,145* Teachers’ Pension & Annuity Fund 152,158* 153,458* Police & Firemen’s Retirement System 41,518* 41,346* State Police Retirement System 2,776* 2,513* Judicial Retirement System 404 417 Alternate Benefit Program 22,225 23,165 Prison Officers’ Pension Fund 0 0 Consolidated Police & Firemen’s Pension Fund 0 0 Central Pension Fund NA NA Total 504,791 500,044

*Both the 2012 and 2013 figures represent the total number of Active and Inactive accounts. The 2013 Inactive (noncontributing) accounts are as follows: PERS Inactive — 49,174, TPAF Inactive — 13,426, PFRS Inactive — 2,030, SPRS Inactive — 14.

RETIRED MEMBERSHIP RETIREMENT SYSTEM 2012 2013 & BENEFICIARIES Public Employees’ Retirement System 152,147 156,099 Teachers’ Pension & Annuity Fund 89,276 91,701 Police & Firemen’s Retirement System 39,413 41,020 State Police Retirement System 3,019 3,246 Judicial Retirement System 561 575 Alternate Benefit Program NA NA Prison Officers’ Pension Fund 133 117 Consolidated Police & Firemen’s Pension Fund 224 175 Central Pension Fund 9 9 Total 284,782* 292,942*

*The number of retirees varies slightly from those reported in the Notes to the Financial Statements due to differences in the effective dates of said tabulations.

PARTICIPATION IN HEALTH PROGRAM 2012 2013 HEALTH BENEFITS PROGRAM State Health Benefits Program and 400,387 408,575 School Employees’ Health Benefits Program Prescription Drug Plan 337,743 342,730 Dental Expense Program 170,017 176,512

26 New Jersey Division of Pensions and Benefits MEMBERSHIP

PUBLIC EMPLOYEES’ RETIREMENT SYSTEM

As of June 30, 2013, the active membership of the system Retirees and Beneficiaries Active totaled 279,145. There were 156,099 retirees and beneficiaries receiving annual pensions totaling $2,915,913,119*. 400, 000 Beneficiaries of deceased active and retired members received lump sum death benefits in the amount of $124,961,201. 300, 000

The system’s assets totaled $28,788,159,403 at the close of the 200, 000 fiscal year 2013.

* Includes cost-of-living adjustments paid under the provisions 100, 000 of the Pension Adjustment Act.

0 TEACHERS’ PENSION AND ANNUITY FUND 1925 1975 2011 2012 2013

As of June 30, 2013, the active membership of the fund totaled Retirees and Beneficiaries Active 153,458. There were 91,701 retirees and beneficiaries receiving annual pensions totaling $3,601,020,357*. 180, 000 Beneficiaries of deceased active and retired members received lump sum death benefits in the amount of $72,089,302. 120,000 The fund’s assets totaled $26,981,308,676 at the close of the fiscal year 2013. 60,000 * Includes cost-of-living adjustments paid under the provisions of the Pension Adjustment Act. 0 1920 1955 2011 2012 2013 POLICE AND FIREMEN’S RETIREMENT SYSTEM

As of June 30, 2013, the active membership of the system totaled 41,346. There were 41,020 retirees and beneficiaries Retirees and Beneficiaries Active receiving annual pensions totaling $1,935,384,557*. 60, 000 Beneficiaries of deceased active and retired members received lump sum death benefits in the amount of $34,084,179. 40,000 The system’s assets totaled $23,104,351,943 at the close of the fiscal year 2013. 20,000 * Includes cost-of-living adjustments paid under the provisions of the Pension Adjustment Act.

0 STATE POLICE RETIREMENT SYSTEM 1950 1970 2011 2012 2013

As of June 30, 2013, the active membership of the system totaled 2,513. There were 3,246 retirees and beneficiaries Retirees and Beneficiaries Active receiving annual pensions totaling $180,223,667*. 4, 000 Beneficiaries of deceased active and retired members received lump sum death benefits in the amount of $2,195,047. 3, 000

The system’s assets totaled $1,842,483,768 at the close of the 2, 000 fiscal year 2013.

* Includes cost-of-living adjustments paid under the provisions 1, 000 of the Pension Adjustment Act. 0 1965 1980 2011 2012 2013

New Jersey Division of Pensions and Benefits 27 MEMBERSHIP

JUDICIAL RETIREMENT SYSTEM

As of June 30, 2013, the active membership of the system Retirees and Beneficiaries Active totaled 417. There were 575 retirees and beneficiaries receiving annual pensions totaling $47,019,641. 600 The system’s assets totaled $234,681,070 at the close of the fiscal year 2013. 400

200

0 1983 1993 2011 2012 2013 ALTERNATE BENEFIT PROGRAM

As of June 30, 2013, the State paid $158,149,329 on behalf of Active 23,165 participants to the carriers underwriting this program. Beneficiaries of deceased active and retired members received 25, 000 $17,613,359 in lump sum death benefits. 20,000

15,000

10,000

5,000

0 PRISON OFFICERS’ PENSION FUND 1970 1990 2011 2012 2013

The activity shown to the right is consistent with a closed pension fund. Retirees and Beneficiaries Active This fund was closed to new membership in January 1960. 600 As of June 30, 2013, the active membership of the fund totaled zero. There were 117 retirees and beneficiaries receiving annu- 400 al pensions totaling $1,763,964. The fund’s assets totaled $8,318,421 at the close of the fiscal year 2013. 200

0 1955 1970 1985 2012 2013 CONSOLIDATED POLICE AND FIREMEN’S PENSION FUND

The activity shown to the right is consistent with a closed pen- Retirees and Beneficiaries Active sion fund. 9,000 As of June 30, 2013, the active membership of the fund totaled zero. There were 175 retirees and beneficiaries receiving annual pensions totaling $3,882,659. 6,000 The fund’s assets totaled $4,668,454 at the close of the fiscal year 2013. 3,000

0 1955 1970 2011 2012 2013

28 New Jersey Division of Pensions and Benefits MEMBERSHIP

NJ STATE EMPLOYEES’ DEFERRED COMPENSATION PLAN

Fiscal year 2013 continues to show a marked increase in active Retirees and Beneficiaries Active participation due to membership campaigns conducted by the Division of Pensions and Benefits. 45, 000 As of June 30, 2013, the active membership of the New Jersey State Employees’ Deferred Compensation Plan totaled 40,719. There were 5,564 members receiving monthly installment pay- 30,000 ments.

The plan’s net assets (participants’ balances) were 15,000 $2,940,893,014 at the close of the fiscal year 2013.

0 1980 1990 2011 2012 2013 SUPPLEMENTAL ANNUITY COLLECTIVE TRUST

As of June 30, 2013, the active membership of the trust totaled Retirees and Beneficiaries Active 3,022. The unit value was $72.1644, an increase of $10.0324 from the June 30, 2012 value of $62.5365. 15,000 There were 432 annuitants. 10,000 The trust’s assets totaled $180,708,213 at the close of the fiscal year 2013. 5,000

0 UNEMPLOYMENT COMPENSATION 1965 1980 1995 2012 2013 AND TEMPORARY DISABILITY INSURANCE

As of June 30, 2013, the Unemployment Compensation State Employees Program for State employees covered as many as 122,835 per- sons, and the Division remitted $4,348,908.41 on behalf of the 150,000 State. There were 8,323 requests for unemployment benefits filed, and $22,976,638 was paid to the employees found eligible. 100,000 During the same period, the Temporary Disability Insurance Program covered 140,899 employees, and the Division remitted $34,544,708.82 on behalf of the State. Claims paid totaled 50,000 $33,724,267.

0 1980 1990 2000 2012 2013 CENTRAL PENSION FUND

As of June 30, 2013, there were 9 beneficiaries receiving annu- Retirees and Beneficiaries al pensions totaling $189,540. 600

400

200

0 1965 1980 2011 2012 2013 New Jersey Division of Pensions and Benefits 29 MEMBERSHIP

PENSION ADJUSTMENT EXPENSE

There were 226,712 pensioners who were paid $899,973,325 Retirees and Beneficiaries during the fiscal year 2013. 300, 000

200,000

100,000

0 STATE HEALTH BENEFITS PROGRAM AND 1960 1980 2011 2012 2013 SCHOOL EMPLOYEES’ HEALTH BENEFITS PROGRAM

As of June 30, 2013, there were 408,575 covered participants Local Participants State Participants (active and retired) consisting of 143,425 State participants and 265,150 participants of 1,126 local participating employers. 300,000 The State and state employee contributions were $1,479,211,068 while payment made by local (including educa- 200,000 tion) employers and employees was $2,827,806,042.

100,000

0 PRESCRIPTION DRUG PLAN 1961 1975 1985 2012 2013

The Prescription Drug Plan covered as many as 142,894 State participants and 199,836 local participants during fiscal year Local Participants State Participants 2013.

The State’s contribution was $420,615,439 while payment 240,000 made by local (including education) employers was $650,149,663. 160,000

80,000

0 1980 1990 2000 2012 2013 DENTAL EXPENSE PROGRAM

The Dental Expense Program covered as many as 118,224 eli- Local Participants State Participants gible State participants and 58,288 local participants during fis- 160, 000 cal year 2013. The State of New Jersey as the employer expended $33,594,744 for active participants while payment made by local (including education) employers was $3,491,411. 120, 000

80, 000

40, 000

0 1980 1990 2000 2012 2013

30 New Jersey Division of Pensions and Benefits FINANCIAL SECTION This page is intentionally blank.

32 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS June 30, 2013 INDEX

Independent Auditors’ Report ...... 35 Management’s Discussion and Analysis (Unaudited) ...... 37 Basic Financial Statements: Statement of Fiduciary Net Position — Fiduciary Funds ...... 43 Combining Statement of Fiduciary Net Position — Fiduciary Funds — Pension Trust and State Health Benefit Program Funds ...... 44 Statement of Changes in Fiduciary Net Position — Fiduciary Funds ...... 45 Combining Statement of Changes in Fiduciary Net Position — Fiduciary Funds — Pension Trust and State Health Benefit Program Funds ...... 46 Notes to Financial Statements ...... 47 Schedules 1 Required Supplementary Information (Unaudited) — Schedule of Funding Progress ...... 82 2 Required Supplementary Information (Unaudited) — Schedule of Employer Contributions ...... 87 3 Schedule of Administrative Expenses ...... 90 4 Schedule of Investment Expense ...... 91 5 Schedule of Expenses for Consultants ...... 91 6 Schedule of Fiduciary Net Position — Fiduciary Funds ...... 92 7 Schedule of Changes in Fiduciary Net Position — Fiduciary Funds ...... 93 8 Combining Schedule of Balance Sheet Information — Fiduciary Funds — Agency Funds ...... 94 9 Combining Schedule of Changes in Fiduciary Net Position Information — Fiduciary Funds — Agency Funds ...... 95 10 Combining Schedule of Fiduciary Net Position Information — State Health Benefit Program Fund — State ...... 96 11 Combining Schedule of Changes in Fiduciary Net Position Information — State Health Benefit Program Fund — State ...... 97 12 Combining Schedule of Fiduciary Net Position Information — State Health Benefit Program Fund — Local ...... 98 13 Combining Schedule of Changes in Fiduciary Net Position Information — State Health Benefit Program Fund — Local ...... 99 14 Combining Schedule of Fiduciary Net Position Information — State Health Benefit Program Fund — Education ...... 100 15 Combining Schedule of Changes in Fiduciary Net Position Information — State Health Benefit Program Fund — Education ...... 101 16 Combining Schedule of Balance Sheet Information — Agency Fund — Dental Expense Program . . . 102 17 Combining Schedule of Changes in Fiduciary Net Position Information — Agency Fund — Dental Expense Program ...... 103

New Jersey Division of Pensions and Benefits 33 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS June 30, 2013 INDEX

18 Schedule of Changes in Position and Liabilities Information — Agency Fund — Alternate Benefit Program Fund ...... 104 19 Schedule of Changes in Position and Liabilities Information — Agency Fund — Pension Adjustment Fund ...... 105 20 Schedule of Changes in Position and Liabilities Information — Agency Fund — Dental Expense Program — Total ...... 106 21 Schedule of Changes in Position and Liabilities Information — Agency Fund — Dental Expense Program — State ...... 107 22 Schedule of Changes in Position and Liabilities Information — Agency Fund — Dental Expense Program — Local ...... 108 23 Combining Schedule of Fiduciary Net Position Information — Fiduciary Funds — Select Pension Trust Funds ...... 109 24 Combining Schedule of Changes in Fiduciary Net Position Information — Fiduciary Funds — Select Pension Trust Funds ...... 110 25 Common Pension Funds — Portfolio of Investments — Equities ...... 111 26 Common Pension Funds — Portfolio of Investments — Fixed Income ...... 146 27 Common Pension Funds — Portfolio of Investments — Alternative Investments and Global Diversified Credit Funds ...... 182 28 Common Pension Funds — Portfolio of Investments — Derivatives ...... 187

34 New Jersey Division of Pensions and Benefits INDEPENDENT AUDITORS’ REPORT

The Treasurer State of New Jersey:

Report on the Financial Statements We have audited the accompanying financial statements of the State of New Jersey, Division of Pensions and Benefits (the Division), as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the Division’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the plan net position of the State of New Jersey, Division of Pensions and Benefits, as of June 30, 2013, and the respective changes in plan net position thereof for the year then ended in accordance with U.S. generally accepted accounting principles.

New Jersey Division of Pensions and Benefits 35 Emphasis of Matter As discussed in note 2, the financial statements referred to above are intended to present the fiduciary net position and the changes in fiduciary net position of the benefit funds administered by the Division. As a result, these financial statements do not purport to, and do not, present fairly the financial position of the State of New Jersey as of June 30, 2013 and the changes in its financial position, or, where applicable, its cash flows thereof for the year ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information U.S. generally accepted accounting principles require that the management’s discussion and analysis and schedules of funding progress and employer contributions on pages 82-86 and 87-89, respectively, be presented to supplement the basis financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Division’s basic financial statements. The supplementary information included in schedule 3 through 28 as listed in the table of contents (the Schedules) are presented for purposes of additional analysis and are not a required part of the basic financial statements. The Schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Short Hills, New Jersey November 20, 2013

36 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Management’s Discussion and Analysis June 30, 2013

Our discussion and analysis of the financial performance of the fiduciary funds (the Funds) administered by the Division of Pensions and Benefits (the Division) provides an overview of the Funds’ financial activities for the fiscal year ended June 30, 2013. Please read it in conjunction with the basic financial statements and financial statement footnotes, which follow this discussion. FINANCIAL HIGHLIGHTS Fiduciary Funds — Pension Trust and State Health Benefit Program Funds • Fiduciary net position increased by $4.0 billion as a result of this year’s operations from $77.9 billion to $81.9 billion. • Additions for the year are $18.7 billion, which are comprised of member and employer pension contributions of $10.4 billion and investment income of $8.3 billion. • Deductions for the year are $14.7 billion, which are comprised of benefit and refund payments of $14.6 billion and administrative expenses of $49.5 million. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the basic financial statements. The basic financial statements are comprised of two components: 1) fiduciary fund financial statements and 2) notes to the financial statements. This report also contains required and other supplementary information in addition to the basic financial statements. FUND FINANCIAL STATEMENTS A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Division uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Fiduciary Funds Fiduciary funds are used to account for the assets that the Division holds on behalf of others as their agent. Fiduciary funds are custodial in nature and do not involve measurement of results of operations. The Division administers eighteen fiduciary funds: twelve pension trust funds, three health benefit program funds, and three agency funds.The basic fiduciary fund financial statements of the pensions trust and State health benefit program funds consist of the statement of fiduciary net position and the statement of changes in fiduciary net position. The basic fiduciary fund financial statement of the agency fund is the statement of fiduciary net position. NOTES TO THE FINANCIAL STATEMENTS The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the basic financial statements and includes a description of the fiduciary funds. OTHER INFORMATION In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information, which includes information regarding the funding status and employer contributions to the pension trust and State health benefit program funds.

New Jersey Division of Pensions and Benefits 37 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Management’s Discussion and Analysis, Continued June 30, 2013

FINANCIAL ANALYSIS SUMMARY OF FIDUCIARY NET POSITION PENSION TRUST AND STATE HEALTH BENEFIT PROGRAM FUNDS

2013 2012 Increase Assets $ 85,002,257,252 80,497,592,498 4,504,664,754 Liabilities 3,073,589,745 2,613,602,458 459,987,287 Net position $ 81,928,667,507 77,883,990,040 4,044,677,467

Assets of the pension trust and state health benefit program funds consist of cash and cash equivalents, investments, securities lending collateral, contributions due from members and participating employers, accrued interest and dividends on investments, members’ loans and other receivables. Between fiscal years 2012 and 2013, total assets increased by $4.5 billion or 5.6%. This is due to an increase of $4.8 billion in investment holdings that were utilized to pay benefits of the funds, an increase in the securities lending collateral of $0.3 billion, offset by a net decrease in cash and cash equivalents and receivables of $0.6 billion.

Liabilities of the pension trust and state health benefit program funds consist of retirement benefits payable to retirees and beneficiaries, contributory and noncontributory group life insurance (NCGI) premiums payable to the Funds’ insurance provider, securities lending collateral and rebates payable and, classified under accounts payable and accrued expenses, outstanding medical claims payable to the medical providers under the State Health Benefits Program (SHBP). Also included with accounts payable and accrued expense are liabilities of the pension trust funds for unclaimed member accounts and checks issued to members that have not been negotiated by the members but remain due and payable. Total liabilities increased by $0.5 billion or 17.6%. This is due to an increase in the securities lending collateral and rebates payable of $0.4 billion and an increase in retirement benefits payable and others of $0.1 billion.

Net position of the pension trust and state health benefit program funds increased by $4.0 billion or 5.2%.

SUMMARY OF FIDUCIARY NET POSITION AGENCY FUNDS

2013 2012 Increase Assets $ 66,414,176 60,038,707 6,375,469 Liabilities 66,414,176 60,038,707 6,375,469 Net position $ — — —

Assets of the agency funds consist of cash and cash equivalents, investments and contributions due from the State and local employers. Between fiscal years 2012 and 2013, total assets increased by $6.4 million or 10.6%. This is attributable to the increased amount invested in the Cash Management Fund (CMF) of $4.7 million, a net increase in cash and cash equivalents and receivables of $1.7 million.

38 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Management’s Discussion and Analysis, Continued June 30, 2013

Liabilities in the agency funds vary according to plan. In the Alternate Benefit Program (ABP), they include reimbursements to state and county colleges, reimbursement to the State of New Jersey general fund of any unused appropriations and noncontributory group life insurance benefits payable. In the Dental Expense Program (DEP), they include claims payable, and in the Pension Adjustment Fund (PAF), they include liabilities for payroll and amounts due to the State of New Jersey general fund and other pension funds. Between fiscal years 2012 and 2013, total liabilities increased by $6.4 million or 10.6%. This is comprised of a $0.3 million increase in liabilities in the PAF, a $5.9 million increase in liabilities in DEP, and a $0.2 million increase in ABP liabilities.

SUMMARY OF CHANGES TO FIDUCIARY NET POSITION PENSION TRUST AND STATE HEALTH BENEFIT PROGRAM FUNDS

2013 2012 Increase Additions: Member contributions $ 2,474,368,350 2,309,269,955 165,098,395 Employer contributions and other 7,950,263,650 6,912,323,830 1,037,939,820 Net investment income 8,297,254,619 1,722,074,598 6,575,180,021 Total additions 18,721,886,619 10,943,668,383 7,778,218,236

Deductions: Benefits 14,455,603,860 13,923,519,412 532,084,448 Refunds of contributions 172,134,350 157,270,934 14,863,416 Administrative expenses 49,470,942 46,498,279 2,972,663 Total deductions 14,677,209,152 14,127,288,625 549,920,527

Changes in net position $ 4,044,677,467 (3,183,620,242) 7,228,297,709

Additions of the pension trust and state health benefit program funds consist of member and employer contributions and earnings from investment activities. There is an increase of $7.8 billion or 71.1% in total additions, attributable to an increase in net investment income of $6.6 billion and an increase of $1.2 billion in member and employer contributions in fiscal year 2013 as compared to fiscal year 2012. Member contributions increased by $165.1 million overall, of which $60.2 million increase is attributable to the state health benefit program funds and a $104.9 million increase is attributable to the pension trust funds. In the SHBP – State, the member contributions increased by $50.7 million or 33.3%, in SHBP – Local the member contributions increased by $6.9 million or 16.1%, and in SHBP – Education, the member contributions increased by $2.6 million or 5.2%. Active employee contribution increased as a result of Chapter 78, P.L.2011 premium share requirements. In plan year 2013, the active employee group rate for SHBP – State increased by 6.9%, in SHBP – Local the increase was 7.9% and in SHBP – Education the increase was 14.7%. SHBP membership increases between plan years 2012 and 2013 also contributed to the higher member contributions. For the pension trust funds, the increase in member contributions is attributable to the higher member contribution rate for the various pension plans as required in Chapter 78, P.L. 2011. Chapter 1, P.L.2010, effective May 21, 2010, required the State to resume making actuarially recommended contributions to the pension plans on a phased-in basis over a seven-year period begining in fiscal year 2012. For fiscal year 2013, the State’s minimum required contribution was 2/7th of the full recommended

New Jersey Division of Pensions and Benefits 39 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Management’s Discussion and Analysis, Continued June 30, 2013

amounts determined on the basis of the July 1, 2011 actuarial valuation. Based on that, the State made pension contributions totaling $1,029.3 million as follows: $614.6 million to the Teachers’ Pension and Annuity Fund (TPAF), $264.1 million to Public Employees’ Retirement System (PERS), $112.5 million to Police and Firemen’s Retirement System (PFRS), $0.9 million to Consolidated Police and Firemen’s Pension Fund (CPFPF), $11.6 million to Judicial Retirement System (JRS), and $25.6 million to the State Police Retirement System (SPRS). State noncontributory group life insurance contributions for fiscal year totaling $79.5 million were as follows: $33.3 million for TPAF, $36.9 million for PERS, $6.4 million for PFRS, $0.7 million for JRS, and $2.2 million for SPRS. Between fiscal years 2012 and 2013, the State’s contribution toward noncontributory group life insurance increased by $12.1 million due to higher claims activity. State noncontributory life insurance benefits are funded on a pay-as-you-go basis. The local contributions for PERS and PFRS are included in the annual billings to local employers. The annual local employer pension appropriation billings increased per the actuarial valuation as of July 1, 2011. For PERS, the amount accrued in fiscal year 2012 for normal contribution, accrued liability, and NCGI was $784.7 milllion and was due on April 1, 2013. For fiscal year 2013, the total amount accrued was $834.6 million and is due April 1, 2014. For PFRS, the total amount accrued in fiscal year 2012 for normal contributions, accrued liability, and NCGI was $781.2 million and was due April 1, 2013. For fiscal year 2013, the total amount accrued was $777.0 million and is due April 1, 2014. The SHBP – State employer contributions decreased by $57.3 million. For the SHBP – Local, employer contributions increased by $155.7 million. For the SHBP – Education, employer contributions increased by $228.1 million. These increases are attributable to rate increases effective January 1, 2012 and 2013, as well as an increase in the number of covered members. The total investment return for the pension trust funds was 11.78% compared to 2.52% in the prior year. Net investment income increased by $6.6 billion or 381.3% due to realized and unrealized gains on U.S. equities, developed market non-U.S. equities, and high yield fixed income securities caused by improving economic conditions and accommodative monetary policies globally. Deductions of the pension trust and state health benefit program funds are mainly comprised of pension benefit payments to retirees and beneficiaries, refunds of contributions to former members, and administrative costs incurred by the Funds to operate the pension plans. Also included are claim charges for the self-insured health and prescription drug benefit programs. Between fiscal years 2012 and 2013, benefit payments increased by $532.1 million or 3.8% due to an increase in the number of retirees receiving retirement and other benefits. The number of refunds processed increased by $14.9 million or 9.5% compared to last year. Administrative expenses increased by $3.0 million or 6.4%. The increase in net position of $4.0 billion was mainly attributable to the increase in investment income when comparing fiscal year 2013 to fiscal year 2012.

40 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Management’s Discussion and Analysis, Continued June 30, 2013

INVESTMENT PERFORMANCE The rates of return (i.e. investment performance, which includes income and changes in the fair value of investments) for the Common Pension Funds, the Cash Management Fund, and various market indices are as follows:

YEAR ENDED JUNE 30 2013 2012 Total Rate of Return (%): All Pension Trust Funds(1) 11.78% 2.52% Common Pension Fund A (Domestic equity) 21.56 3.58 Common Pension Fund B (Fixed income) 1.73 15.89 Common Pension Fund D (International equity) 11.90 (16.53) Common Pension Fund E (Alternative investments) 11.63 1.63 Cash Management Fund(2) 0.14 0.17 Returns of Various Market Indices (%): S&P Composite 1500 Index 21.13 4.63 S&P 500 Index 20.60 5.45 Dow Jones Industrial Average 18.87 6.63 Barclays U.S. Government/Credit Index (0.62) 8.78 Barclays Long Government/Credit (4.69) 24.58 MSCI EAFE - Net (Developed Non-U.S.) 18.62 (13.83) MSCI Emerging Market Free - Net 2.87 (15.95) HFRI Fund of Funds Index 7.27 (5.40) NCREIF Property Index 10.73 12.04 Cambridge Private Equity Index (3) 12.85 10.83 3-month Treasury bills 0.11 0.04 (1) Excludes returns on Police and Fire Mortgage Program. (2) Rate of return for State of New Jersey participants which includes the Pension Trust Funds. (3) Reported with a one quarter lag.

OVERALL FINANCIAL CONDITION OF THE FUNDS For the defined benefit pension trust funds, the combined funded ratio is 64.5% based on the current actuarial valuation dated July 1, 2012, with an unfunded actuarial accrued liability (UAAL) of $47.2 billion on an actuarial basis per Governmental Accounting Standards Board (GASB) Statement No. 25, Financial Reporting for Defined Benefit Plans and Note Disclosures for Defined Contribution Plans as compared to 67.5% based on the prior year valuation with UAAL of $41.7 billion. The increase in the unfunded pension liability and the decrease in the overall funded ratio is mainly attributable to the State making phased-in contributions to the pension plans beginning in fiscal year 2012 under Chapter 1, P.L.2010. For fiscal year 2013, the State contributed $1.029 billion or approximately 2/7th of the full recommended contribution of $3.600 billion determined on the basis of the July 1, 2011 actuarial valuation. For the SHBP – Education, total revenues recognized exceeded total expenses incurred by $41.3 million, increasing the surplus at the beginning of the year from $183.9 million to $225.2 million at year end. This increase is attributable to a gain on the active member side. The contribution rates for active members for calendar year 2012 and 2013 included a 2% margin in order to produce a gain to raise the Claim Stabilization Reserve (CSR). The target CSR is equivalent to 2 months of plan costs, and as of June 30, 2013, the CSR is approximately 1.5 months of plan costs. For the SHBP – State, total expenses incurred exceeded total revenues recognized by $53.0 million, increasing the balance from a deficit at the beginning

New Jersey Division of Pensions and Benefits 41 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Management’s Discussion and Analysis, Continued June 30, 2013

of the year of $100.1 million to a deficit of $153.2 million at year end. This increase in the deficit balance is due to the State contributing less than the full required premium contributions in order to utilize available cash reserves to meet incurred claim charges. For SHBP – Local, total revenues recognized exceeded total expenses incurred by $75.6 million, increasing the surplus at the beginning of the year from $147.9 million to $223.5 million at year end. The increase in the surplus is due to margin being added to the calendar year 2012 and 2013 premium rates in order to raise reserve levels. For the state health benefit program funds for fiscal year 2013, based on the current actuarial valuation dated July 1, 2012, the State had a $19.3 billion unfunded actuarial accrued liability for other post-employment benefits (OPEB) under GASB Statement No. 43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, for the SHBP – State active and retired members and $32.2 billion for the SHBP – Education employees and retirees that become the obligation of the State of New Jersey upon retirement. In comparison, based on the prior year actuarial valuation, the State had a $18.1 billion unfunded actuarial accrued liability for the SHBP - State active and retired members and $30.9 billion for the SHBP - Education employees and retirees. This increase in the post-retirement medical UAAL is attributable to the State funding post-retirement medical benefits on a pay-as-you-go basis as opposed to funding on an actuarial reserve basis. The SHBP – Local fiscal year 2013 unfunded actuarial accrued liability for OPEB based on the same actuarial valuation was $12.4 billion and, for the prior year actuarial valuation, the liability was $11.1 billion. During the year, the ABP and the PAF received sufficient funding to meet their benefit obligations. For the State Employees Deferred Compensation Plan and the Supplemental Annuity Collective Trust, members are 100% vested in the present value of their contributions, and the funds have sufficient assets to meet future benefit obligations. CONTACTING SYSTEM FINANCIAL MANAGEMENT This financial report is designed to provide our members, beneficiaries, investors, and other interested parties with a general overview of the Funds’ finances and to show the Funds’ accountability for the money it receives. This report is available on the Division of Pensions and Benefits website at www.state.nj.us/treasury/pensions. If you have any questions about this report or need additional financial information, contact the Division of Pensions and Benefits, P.O. Box 295, Trenton, NJ 08625-0295.

42 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Statement of Fiduciary Net Position Fiduciary Funds June 30, 2013

PENSION TRUST AND STATE HEALTH BENEFIT AGENCY PROGRAM FUNDS FUNDS Assets: Cash and cash equivalents $ 6,879,644 1,572,900 Securities lending collateral 1,556,965,543 — Investments, at fair value: Cash Management Fund 2,254,597,761 32,917,968 Common Pension Fund A 20,964,307,768 — Common Pension Fund B 17,034,005,939 — Common Pension Fund D 14,689,068,951 — Common Pension Fund E 20,015,522,984 — Common stocks 177,323,777 — Mortgages 835,483,242 — U.S. Government obligations 399,045,275 — Domestic equities 1,308,850,841 — International equities 269,977,576 — Other fixed income securities 909,186,823 — Total investments 78,857,370,937 32,917,968 Receivables: Contributions: Members 204,779,532 628,277 Employers 3,247,848,178 — Accrued interest and dividends 4,655,008 — Members’ loans 1,057,464,740 — Securities sold in transit 45,498,972 — Other 20,794,698 31,295,031 Total receivables 4,581,041,128 31,923,308 Total assets 85,002,257,252 66,414,176

Liabilities: Accounts payable and accrued expenses 753,021,603 63,024,395 Retirement benefits payable 749,773,762 — Cash Overdraft 639,342 — Noncontributory group life insurance premiums payable 14,113,195 — Assets held for local contributing employers — 2,861,776 Pension adjustment payroll payable — 252,882 Due to State of New Jersey — 250,629 Due to other funds — 24,494 Securities lending collateral and rebates payable 1,556,041,843 — Total liabilities 3,073,589,745 66,414,176

Net Position: Held in trust for pension and health benefits $ 81,928,667,507 — See schedule of funding progress on pages 82-86. See accompanying notes to financial statements.

New Jersey Division of Pensions and Benefits 43 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Combining Statement of Fiduciary Net Position Fiduciary Funds — Pension Trust and State Health Benefit Program Funds June 30, 2013

ALTERNATE CONSOLIDATED STATE HEALTH STATE HEALTH STATE HEALTH BENEFIT POLICE AND DEFINED POLICE AND PRISON PUBLIC STATE SUPPLEMENTAL TEACHERS’ BENEFIT BENEFIT BENEFIT LONG-TERM CENTRAL FIREMEN’S DEFERRED CONTRIBUTION JUDICIAL FIREMEN’S OFFICERS’ EMPLOYEES’ POLICE ANNUITY PENSION AND PROGRAM PROGRAM PROGRAM DISABILITY PENSION PENSION COMPENSATION RETIREMENT RETIREMENT RETIREMENT PENSION RETIREMENT RETIREMENT COLLECTIVE ANNUITY FUND FUND FUND FUND FUND FUND PLAN PLAN SYSTEM SYSTEM FUND SYSTEM SYSTEM TRUST FUND STATE LOCAL EDUCATION TOTAL

Assets: Cash and cash equivalents $ — 21,588 84,580 — 16,598 51,720 1,992,216 214,172 656,487 529,005 292,328 1,365,512 816,188 450,743 388,507 6,879,644 Securities lending collateral — — — — — 4,786,681 428,286,574 — 532,645,247 37,999,531 — 553,247,510 — — — 1,556,965,543 Investments, at fair value: Cash Management Fund 109,580 434 4,354,730 54,634,315 953,016 6,800,546 190,011,329 8,033,501 687,473,519 27,300,704 2,338,735 506,121,173 58,829,316 276,062,786 431,574,077 2,254,597,761 Common Pension Fund A — — — — — 66,578,189 5,760,867,621 — 7,190,554,565 520,114,573 — 7,426,192,820 — — — 20,964,307,768 Common Pension Fund B — — — — — 51,397,224 4,870,208,286 — 5,894,378,053 396,838,281 — 5,821,184,095 — — — 17,034,005,939 Common Pension Fund D — — — — — 44,584,609 4,019,607,827 — 5,010,785,888 358,088,374 — 5,256,002,253 — — — 14,689,068,951 Common Pension Fund E — — — — — 59,034,849 5,617,716,153 — 6,812,680,963 483,122,321 — 7,042,968,698 — — — 20,015,522,984 Common Stocks — — ———— —— ——177,323,777 — — — — 177,323,777 Mortgages — — ————835,483,242 — — — — — — — — 835,483,242 U.S. government obligations — — — 399,045,275 — — — — — — — — — — — 399,045,275 Domestic equities — — — 1,308,850,841 — — — — — — — — — — — 1,308,850,841 International equities — — — 269,977,576 — — — — — — — — — — — 269,977,576 Other fixed income securities — — — 909,186,823 — — — — — — — — — — — 909,186,823

Total investments 109,580 434 4,354,730 2,941,694,830 953,016 228,395,417 21,293,894,458 8,033,501 25,595,872,988 1,785,464,253 179,662,512 26,052,469,039 58,829,316 276,062,786 431,574,077 78,857,370,937

Receivables: Contributions: Members — — — — — 252,827 51,395,322 — 71,020,892 1,074,313 517,555 78,322,751 531,090 872,245 792,537 204,779,532 Employers — — — — — 67,840 964,876,818 — 2,072,511,300 — — 71,469,595 6,227,807 74,989,837 57,704,981 3,247,848,178 Accrued interest and dividends — 1 23 1,095,540 — 29 3,319,010 10 2,017 120 235,818 2,440 — — — 4,655,008 Members’ loans — — — — — 965,480 308,953,101 — 507,935,995 17,394,165 — 222,215,999 — — — 1,057,464,740 Securities sold in transit — — ————45,498,972 — — — — — — — — 45,498,972 Other 1,537,116 — 229,121 — — 161,076 6,135,472 70,738 7,514,477 22,381 — 2,215,830 924,587 847,594 1,136,306 20,794,698 Total receivables 1,537,116 1 229,144 1,095,540 — 1,447,252 1,380,178,695 70,748 2,658,984,681 18,490,979 753,373 374,226,615 7,683,484 76,709,676 59,633,824 4,581,041,128

Total assets 1,646,696 22,023 4,668,454 2,942,790,370 969,614 234,681,070 23,104,351,943 8,318,421 28,788,159,403 1,842,483,768 180,708,213 26,981,308,676 67,328,988 353,223,205 491,596,408 85,002,257,252

Liabilities: CUT HERE FOR CORRECT PULLOUT Accounts payable and accrued expenses — 969 2,718 1,258,014 — (307) 3,893,232 1,239 73,859,676 283,901 115,938 57,025,057 220,496,302 129,671,252 266,413,612 753,021,603 Retirement benefits payable — 21,054 311,920 — — 3,998,889 163,573,676 145,263 254,882,489 15,523,488 2,330,261 308,986,722 — — — 749,773,462 Cash overdraft — — — 639,342 — — — — — — — — — — — 639,342 Non-contributory group insurance premiums payable — — — — — 67,840 3,914,928 — 7,051,884 73,714 — 3,004,829 — — — 14,113,195 Securities lending collateral and rebates payable — — — — — 4,783,831 428,032,562 — 532,329,180 37,976,943 — 552,919,327 — — — 1,556,041,843

Total liabilities — 22,023 314,638 1,897,356 — 8,850,253 599,414,398 146,502 868,123,229 53,858,046 2,446,199 921,935,935 220,496,302 129,671,252 266,413,612 3,073,589,745

Net position held in trust for pension and health benefits $ 1,646,696 — 4,353,816 2,940,893,014 969,614 225,830,817 22,504,937,545 8,171,919 27,920,036,174 1,788,625,722 178,262,014 26,059,372,741 (153,167,314) 223,551,953 225,182,796 81,928,667,507

See accompanying notes to financial statements.

New Jersey Division of Pensions and Benefits 44 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Statement of Changes in Fiduciary Net Position Fiduciary Funds Year ended June 30, 2013

PENSION TRUST AND STATE HEALTH BENEFIT PROGRAM FUNDS Additions: Contributions: Members $ 2,474,368,350 Employers 7,946,873,907 Other 3,389,743 Total contributions 10,424,632,000 Investment income: Net appreciation in fair value of investments 6,329,233,230 Interest 1,503,398,736 Dividends 479,409,930 8,312,041,896 Less investment expense 14,787,277 Net investment income 8,297,254,619 Total additions 18,721,886,619 Deductions: Benefits 14,455,603,860 Refunds of contributions 172,134,350 Administrative and miscellaneous expenses 49,470,942 Total deductions 14,677,209,152 Change in net position 4,044,677,467 Net position held in trust for pension and health benefits: Beginning of year 77,883,990,040 End of year $ 81,928,667,507 See accompanying notes to financial statements.

New Jersey Division of Pensions and Benefits 45 New Jersey Division of Pensions and Benefits See accompanying notes to financial statements. Deductions: Additions: Net position held in trust forNet position held in trust Administrative and miscellaneous Refunds of contributions Benefits Investment income: Contributions: pension and health benefits: End of year Beginning of year expenses investment expense Less: Dividends Other Net appreciation (depreciation) in Employers Members Interest fair value of investments Total deductions Total additions Net investment income Total contributions Net increase (decrease) 1,646,696 $ $ OGTR ETA IEE’ EERDCNRBTO UIIL FRMNSOFCR’EPOES OIEANIYPNINADPORMPORMPROGRA PROGRAM PROGRAM PENSION AND ANNUITY POLICE EMPLOYEES’ OFFICERS’ FIREMEN’S JUDICIAL CONTRIBUTION DEFERRED FIREMEN’S CENTRAL LONG-TERM ALTERNATE IAIIYPNINPNINCMESTO EIEETRTRMN EIEET ESO EIEETRTRMN OLCIEANNUITY COLLECTIVE RETIREMENT RETIREMENT PENSION RETIREMENT RETIREMENT COMPENSATION PENSION PENSION DISABILITY BENEFIT 1,556,065 ,4,6 9,1 ,9,9 2,1,1 ,0,6 78811190241917099311642912724412,238,930 182,752,484 3,181,674,209 1,770,929 4,2 1,980,234,149 37,624,576 47,848,101 241,530,381 1,207,760 4,718,272,385 898,612 124,516,718 3,894,398 3,478,087,129 41,643,253 190,312 1,484,737 1 6,635,320 2,949,360 479,365,849 49,657,127 3,389,354 2,030,445,802 190,312 889,542 3,039,991 1,286,306,574 15,711,226 1,482,976 177,296,365 3,389,137 190,214 3,037,116 ,4,6 8,4 ,8,5 2,6,6 ,0,6 7648919948761739430084301248741,3,3 ,7,0,5 ,0,2,1 ,6,3,0 ,3,9,5 14,455,603,860 2,332,399,659 1,061,533,307 2,001,820,015 3,673,109,659 12,238,930 182,418,714 3,040,874,320 1,763,964 1,969,468,736 47,684,869 1,207,760 124,062,368 3,882,659 189,540 2,949,360 ,3,1 6,0 911,150 168,000 3,037,116 FUND 90,631 2,875 2,875 2,901 (26) — — — 2,477,987 22,214 — — — FUND 772 98 98 98 ,5,6 ,8,4,8 9,3 3,3,6 1070455904262,8,3,9 ,2,4,2 152,876,36 1,729,847,825 26,383,437,998 9,044,236 21,007,084,565 232,035,665 692,637 2,586,043,883 4,858,860 — 179454,350 11,739 — — — ,5,1 ,4,9,1 6,1 2,3,1 2549755811992,2,3,7 ,8,2,2 7,6,1 26,0 178,262,014 1,788,625,722 27,920,036,174 8,171,919 22,504,937,545 225,830,817 969,614 2,940,893,014 4,353,816 — — — 5504 5,4,3 7,7 62488 ,9,5,8 8237 ,3,9,7 877872,8,4 514, 25,385,646 58,777,897 1,536,598,176 (872,317) 1,497,852,980 (6,204,848) 276,977 354,849,131 (505,044) — CONSOLIDATED POLICE AND FUND ,5 252,745 302,322,229 4,259 4,476 ,4 2,444,034 4,443 1 302,069,484 217 3290,569,604 33 9,308,591 — — 177,296,365 — Fiduciary Funds — PensionFiduciary Trust and State Health Benefit Program Funds PLAN — — ,8,7 23849898,531,390 12,308,419 1,482,976 — Combining Statement of Changes in Fiduciary Net PositionCombining Statement of Changes in Fiduciary DEFINED PLAN ,6 592072,191,780,555 25,932,027 1,761 ,6 5903021338631,9 ,9,0,4 9,8,8 0992628996983370469767768,312,041,896 637,776 406,997 333,750 2,869,976,968 30,989,256 191,983,382 2,696,101,746 11,599 2,193,318,613 25,950,370 1,761 ,4 ,9,2 5,7,1 15658795732,889,692 518,799,577 11,556 451,072,019 4,094,823 1,747 DIVISION OF PENSIONS AND BENEFITS 42,7,6 1,614,143,598 20,375,064 14 6,3 3,881,457 163,232 — 1,538,058 18,343 — — ,8,8 128,102,996 1,480,483 — — ,0,0 387,775,184 3,402,807 — SYSTEM Year ended June 30, 2013 STATE OF NEW JERSEY — 6,883,956 — OIEADPRISON POLICE AND SYSTEM 889,542 — FUND ,7 ,8,2,8 9,7,5 099262853096333, 2,865,390,916 30,989,256 191,873,254 2,687,826,583 9,070 ,6 28463294,886 22,814,653 6,965 110,128 8,275,163 2,529 320747561758002,6,1 2,212,137,760 27,063,319 147,528,030 2,017,407,576 43 5,9,9 1556039314165,134,423 3,923,184 11,565,660 159,894,593 — 1,8,3 38,884 117,985,236 — ,8,4,7 27,781,894 1,184,446,277 — 4,9,2 18523665307653882271185,4,8 210012,474,368,350 52,100,031 50,048,889 202,711,158 726,523,838 6,635,320 21,875,233 845,999,525 — YTMSYSTEM SYSTEM PUBLIC — TT UPEETLTAHR’BNFTBNFTBENEFIT BENEFIT BENEFIT TEACHERS’ SUPPLEMENTAL STATE — TRUST ,5 9,0,8 3,1 0,6 3,2 1,503,398,736 634,427 403,866 332,015 492,704,785 2,753 ————— 47,225,502 — 2420035060173124178849,470,942 4,137,828 1,713,172 3,510,600 12,482,060 — 4,586,052 — 5,2,5 ,4,6,6 ,8,1,7 ,2,9,8 7,946,873,907 2,325,090,481 1,088,415,378 1,749,261,868 655,428,958 — 5548620(0,4,7)17971813819577,883,990,040 183,891,995 147,927,168 (100,143,475) 25,544,836,250 8 ,3,1,2 ,0,3,1 ,6,4,7 ,3,3,8 14,677,209,152 2,336,537,487 1,063,246,479 2,005,330,615 3,732,817,221 31927619193061184427237105210,424,632,000 2,377,190,512 1,138,464,267 1,951,973,026 ,381,962,796 93271(5,6,1)23519325127681,928,667,507 225,182,796 223,551,953 (153,167,314) 59,372,741 7337219236761188124237882818,721,886,619 2,377,828,288 1,138,871,264 1,952,306,776 47,353,712 FUND 3,9 5,2,3)7,2,8 120814,044,677,467 41,290,801 75,624,785 (53,023,839) 536,491 TT ELHSAEHAT STATE HEALTH STATE HEALTH STATE HEALTH STATE FUND 1,735 5 0,9 3,7 8,297,254,619 637,776 406,997 750 — — — OA DCTO TOTAL EDUCATION LOCAL FUND 3,131 — — — FUND ,4 6,329,233,230 3,349 M 479,409,930 — 172,134,350 — 14,787,277 — 3,389,743 46

CUT HERE FOR CORRECT PULLOUT STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements June 30, 2013

(1) DESCRIPTION OF THE FUNDS The State of New Jersey (the State) sponsors and administers the following benefit funds which have been included in the basic financial statements of the State of New Jersey Division of Pensions and Benefits (the Division), collectively referred to as the Funds, Systems, and Trust or the pension funds: Fiduciary Funds PENSION TRUST AND STATE HEALTH BENEFIT PROGRAM FUNDS Judicial Retirement System (JRS) Consolidated Police and Firemen’s Pension Fund (CPFPF) Police and Firemen’s Retirement System (PFRS) Prison Officers’ Pension Fund (POPF) Public Employees’ Retirement System (PERS) State Police Retirement System (SPRS) Teachers’ Pension and Annuity Fund (TPAF) Supplemental Annuity Collective Trust (SACT) Central Pension Fund (CPF) New Jersey State Employees Deferred Compensation Plan (NJSEDCP) Defined Contribution Retirement Program (DCRP) Alternate Benefit Long-Term Disability Fund (ABPLTD) State Health Benefit Program Fund (SHBP) - State State Health Benefit Program Fund (SHBP) - Local State Health Benefit Program Fund (SHBP) - Education AGENCY FUNDS Pension Adjustment Fund (PAF) Alternate Benefit Program Fund (ABP) Dental Expense Program Fund (DEP) Stand alone financial reports for Agency Funds, SHBP, NJSEDCP, and SACT have been prepared. These financial reports, which can be obtained from the Division or on its website at www.state.nj.us/treasury/pensions, provide a description of the nature and purpose of each of these funds. Descriptions of the contribution requirements and benefit provisions for these funds are provided in notes 5 and 6, respectively. The pension trust funds are single-employer defined benefit pension plans, except for PERS and PFRS, which are cost-sharing multiple-employer defined benefit plans, TPAF and CPFPF, which are cost-sharing defined benefit plans with a special funding situation, and SACT, NJSEDCP, DCRP, and ABPLTD which are single-employer defined contribution plans. The Prescription Drug Program (PDP) of each respective SHBP are combined and reported as a trust fund with the respective SHBP – State, SHBP – Local and SHBP – Education plans. The SHBP – State is classified as a single-employer plan. The SHBP – Local and SHBP – Education are classified as cost-sharing multiple-employer plans. (2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Division have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to governmental entities. Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.

New Jersey Division of Pensions and Benefits 47 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Reporting Entity The financial statements include all funds which are administered by the Division over which operating controls are with the individual funds, systems, or trust governing Boards and/or the State of New Jersey. The financial statements of the Funds, Systems, and Trust are included in the financial statements of the State of New Jersey; however, the accompanying financial statements are intended to present solely the funds listed above which are administered by the Division and not the State of New Jersey as a whole. Fund Accounting The accounts of the Division are maintained in accordance with the principles of fund accounting to ensure observance of limitations and restrictions on the resources available. The principles of fund accounting require that the resources be classified for accounting and reporting purposes into funds in accordance with activities or objectives specified for the resources. Each fund is a separate accounting entity with a self-balancing set of accounts. Fiduciary Funds Pension trust and State health benefit program funds – Account for monies received for, expenses incurred by and the net position available for plan benefits of the various public employee retirement systems and health benefit programs. Agency funds – Agency funds are used to account for the assets that the Division holds on behalf of others as their agent. Agency funds are custodial in nature and do not involve measurement of results of operations. Measurement Focus and Basis of Accounting The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All funds are accounted for using an economic resources measurement focus. The accrual basis of accounting is used for measuring financial position and changes in net position of the pension trust and health benefit program funds. Under this method, revenues are recorded in the accounting period in which they are earned, and deductions are recorded at the time the liabilities are incurred. The financial statements of the pension trust funds conform to the provisions of GASB Statement No. 25, Financial Reporting for Defined Benefit Plans and Note Disclosures for Defined Contributions Plans (GASB Statement No. 25). The financial statements of the health benefit program funds conform to the provisions of the GASB Statement No. 43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans (GASB Statement No. 43). Employer contributions are recognized when payable to the Funds. Benefits and refunds are recognized when due and payable in accordance with the terms of the Funds. Capital Assets Capital assets utilized by the Division include equipment which is owned by the State of New Jersey.

48 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Membership and Contributing Employers Membership and contributing employers of the pension trust funds consisted of the following at July 1, 2012, the date of the most recent actuarial valuations. Membership of the health benefit program funds for OPEB is based on the valuation dated July 1, 2012, and its participating employer count is from the Division’s data base as of June 30, 2013. Member counts of SACT, CPF, NJSEDCP, and ABPLTD are based on the Division’s data base as of June 30, 2013:

JRS CPFPF PFRS POPF PERS SPRS Retiree members: Retirees and beneficiaries receiving benefits currently 535 241 39,712 135 152,593 3,030 Terminated employees entitled to benefits but not yet receiving them 3 — 55 — 1,032 — Total retiree members 538 241 39,767 135 153,625 3,030 Active members: Vested 196 — 28,645 — 151,547 1,675 Non-vested 211 — 12,174 — 128,611 1,046 Total active members 407 — 40,819 — 280,158 2,721 Total 945 241 80,586 135 433,783 5,751 Contributing Employers 1 57 582 1 1,712 1

SHBP TPAF SACT CPF NJSEDCP ABPLTD (OPEB) Retiree members: Retirees and beneficiaries receiving benefits currently 89,308 432 9 5,564 — 217,744 Terminated employees entitled to benefits but not yet receiving them 392————— Total retiree members 89,700 432 9 5,564 — 217,744 Active members: Vested 85,670 3,022 — 40,719 154 384,994 Non-vested 64,530————— Total active members 150,200 3,022 — 40,719 154 384,994 Total 239,900 3,454 9 46,283 154 602,738 Contributing Employers 27# —1—1585

# In addition to the State, who is the sole payer of regular employer contributions to the fund, TPAF’s contributing employers include boards of education who elected to participate in the Early Retirement Incentive Programs and continue to pay towards their incurrued liability.

New Jersey Division of Pensions and Benefits 49 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

Membership in the agency funds administered by the Division consisted of the following as of June 30, 2013:

STATE LOCAL TOTAL Dental Expense Program Fund* 118,224 58,288 176,512 Alternate Benefit Program Fund** 20,070 3,095 23,165 Pension Adjustment Fund 117,280 109,432 226,712 * Active and retired participants ** Including those receiving long-term disability benefits

Investments The Division of Investment, Department of the Treasury, State of New Jersey (Division of Investment) manages and invests certain assets of seven of the defined benefit plans (PERS, TPAF, JRS, PFRS, CPFPF, SPRS and POPF) and two defined contribution plans (SACT and NJSEDCP). The Division of Investment accounts included in the Division of Pensions and Benefits report are: Common Pension Fund A, Common Pension Fund B, Common Pension Fund D, Common Pension Fund E (collectively known as the Common Pension Funds), Police and Firemen’s Mortgage Program accounts, and other investments owned directly by the seven defined benefit pension plans. Common Pension Fund A invests primarily in domestic equity securities. Common Pension Fund B invests primarily in fixed income securities. Common Pension Fund D invests primarily in international equity securities. Common Pension Fund E invests primarily in alternative investments, which includes private equity, real estate, real asset, and absolute return strategy funds. The Police and Firemen’s Retirement System includes a mortgage loan program administered by the New Jersey Housing and Mortgage Finance Agency that provides participants with mortgages from the program at rates which are fixed by formula. The law establishing the program provides that the pension fund may not sell the mortgages, and no independent market exists for them. Prudential Retirement is the third party administrator for the NJSEDCP. Prudential Retirement provides recordkeeping, administration services and access to 22 investments through a combination of their separate account product offerings and retail branded mutual funds. The four state-managed investments options (DCP Bond Fund, DCP Equity Fund, DCP Small Cap Equity Fund and DCP Money Market Fund) are closed to new investments. The Division of Investment is the fiduciary for the investments of the Plan. The Division of Pensions and Benefits maintains its administrative oversight functions for the Plan. Investments are reported at fair value as follows: • U.S. Government and Agency, Sovereign and Corporate obligations – prices quoted by a major dealer in such securities. • Police and Firemen’s mortgages – estimated market prices obtained from an independent broker. • Domestic and Foreign Equity Securities, Exchanged Traded Funds, Forward Foreign Exchange Contracts – closing prices as reported on the primary market or exchange on which they trade. • Money Market Instruments – amortized cost which approximates fair value. • Cash Management Fund – closing net position on the last day of trading during the period as determined by the Transfer Agent. • Alternative investments (private equity, real estate, real asset, and absolute return strategy funds) – Fair values for the individual funds are based upon the net asset values for the funds at the clos- est available reporting date, adjusted for subsequent contributions, distributions, management fees and reserves. The valuation techniques vary based upon investment type and involve a certain degree of expert judgment. The most significant input into the net asset value of an entity is the

50 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

value of its investment holdings. The net asset value is provided by the general partner and/or investment manager and reviewed by management. The net asset values are audited annually.The strategy of private equity and real estate funds are long term and illiquid in nature which can prevent the investment from being readily marketable. Hedge funds may be subject to redemption restrictions which can limit distributions and restrict the ability of a limited partner to exit a partnership. For alternative investments, the realized value received upon the sale of these investments in the open market might be different than the fair value reported in the accompanying financial statements. • Common Pension Funds – net position of the fund on the last day of the period as determined by the custodian. Investment transactions are accounted for on a trade or investment date basis. Gains and losses from investment transactions are determined by the average cost method. Interest and dividend income is recorded on the accrual basis, with dividends accruing on the ex-dividend date. Securities Lending The State Investment Council policies permit Common Pension Funds A, B and D, and several of the direct pension plan portfolios to participate in securities lending programs, whereby securities are loaned to brokers or other borrowers and, in return, the pension funds have rights to the collateral received. All of the publicly traded securities held in Common Pension Funds A, B and D, and certain securities held directly by the pension plans, are eligible for the securities lending program. Collateral received may consist of cash, letters of credit, or government securities having a market value equal to or exceeding 102% (U.S. dollar denominated) or 105% (non-U.S. dollar denominated) of the value of the loaned securities at the time the loan is made. Collateral is marked to market daily and adjusted as needed to maintain the required minimum level. For loans of U.S. government securities or sovereign debt issued by non-U.S. governments, in the event that the market value of the collateral falls below 100% of the market value of the outstanding loaned securities to an individual borrower, or the market value of the collateral of all loans of such securities falls below the collateral requirement, additional collateral shall be transferred by the borrower to the respective funds no later than the close of the next business day so that the market value of such additional collateral together with collateral previously delivered meets the collateral requirements. For loans of all other types of securities, in the event that the market value of the collateral falls below the collateral requirement of either 102% or 105% (depending on whether the securities are denominated in U.S. dollars or a foreign currency, respectively) of the market value of the outstanding loaned securities to an individual borrower, additional collateral shall be transferred in an amount that will increase the aggregate of the borrower’s collateral to meet the collateral requirements. As of June 30, 2013, the Common Pension Funds have no aggregate credit risk exposure to borrowers because the collateral amount held by the Common Pension Funds exceeded the market value of the securities on loan. The contracts with the Common Pension Funds’ securities lending agent require them to indemnify the Common Pension Funds if the brokers or other borrowers fail to return the securities and provides that collateral securities may be sold in the event of a borrower default. The Common Pension Funds are also indemnified for any loss of principal or interest on collateral invested in repurchase agreements. The Common Pension Funds cannot participate in any dividend reinvestment program or vote with respect to any securities that are on loan on the applicable record date. The securities loans can be terminated by notification by either the borrower or the Common Pension Funds. The term to maturity of the securities loans is generally matched with the term to maturity of the investment of the cash collateral.

New Jersey Division of Pensions and Benefits 51 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Derivatives The Division of Investment, from time to time, utilizes forward foreign currency contracts, a derivative security, as a means to hedge against currency risks in the Common Pension Funds’ foreign equity and fixed income portfolios. Forward foreign currency contracts are agreements to buy or sell a specific amount of a foreign currency at a specified delivery or maturity date for an agreed upon price. The fair value of foreign forward currency contracts held directly by the Common Pension Funds as of June 30, 2013 was as follows: Forward currency receivable $ 902,092,557 Forward currency payable 893,530,515 Net unrealized gain $ 8,562,042

The Common Pension Funds utilize covered call and put options in an effort to add value to or reduce the risk level in the portfolio. Options are agreements that give the owner of the option the right, but not obligation, to buy (in the case of a call option) or to sell (in the case of a put option) a specific amount of an asset for a specific price (called the strike price) on or before a specified expiration date. The Common Pension Funds enter into covered calls when its writes (or sells) call options on underlying stocks held by the Common Pension Funds or stock indices. The Common Pension Funds enter into covered put options when it purchases put options on underlying stocks held by the Common Pension Funds or stock indices. The Common Pension Fund enters into put spreads when it purchases put options while simultaneously writing put options on the same underlying securities of indices at a lower strike price. The purchaser of put options pays a premium at the outset of the agreement and stands to gain from an unfavorable change (i.e., a decrease) in the price of the instrument underlying the option. The writer of call options receives a premium at the outset of the agreement and may bear the risk of an unfavorable change (i.e., an increase) in the price of the instrument underlying the option. The Common Pension Funds had written call options as of June 30, 2013 on 5,325,000 shares, and these options had a fair value of ($6,750,100). As of June 30, 2013 the Common Pension Funds owned 15,000 put option contracts with a fair value of $6,675,000. The fair values of all derivative instruments as of June 30, 2013 are included within the net position of the Common Pension Funds at fair value, in the Division’s statement of fiduciary net position. The change in fair value for all derivative instruments from fiscal year 2012 to fiscal year 2013 was $12,871,341 and is included as a component of the net appreciation in fair value of investments in the Division’s statement of changes in fiduciary net position. Certain of the alternative investment funds and partnerships may use derivative instruments to hedge against market risk and to enhance investment returns. At any point during the year, the Common Pension Funds may have additional exposure to derivatives primarily through limited liability vehicles such as limited partnerships and commingled investment funds. Members’ Loans Members of JRS, PFRS, SPRS, PERS and TPAF who have at least three years of service in these plans may borrow up to 50% of their accumulated member contributions. Repayment of loan balances is deducted from payroll checks and bears a commercially reasonable interest rate as set by the State Treasurer. For 2013 the interest rate is 5.25%, and there is an $8 processing fee per loan. Members who retire with an outstanding loan have the option of paying the loan in full prior to receiving any benefits or continuing their monthly loan payment schedule into retirement.

52 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Administrative Expenses Administrative expenses are paid by the Funds and the Systems to the State of New Jersey, Department of the Treasury and are included in the accompanying financial statements. In certain funds (JRS, PFRS, PERS, SPRS and TPAF) miscellaneous expenses and reimbursements from the fund that comprise various adjustments to member and employer accounts are incorporated into the administrative expense amounts included in the accompanying financial statements. These miscellaneous items are not part of the supplementary information included in the Schedule of Administrative Expenses (Schedule 3). Additionally, State Health Benefit Program Fund – State, Local and Education administrative expenses are included in administrative expenses in the accompanying financial statements but are not included in the supplementary information in Schedule 3. Income Tax Status Based on Internal Revenue Service (IRS) determination letters received in January 2012 for TPAF, PERS, POPF, JRS, and SPRS and in June 2012 for PFRS and CPFPF, the seven pension funds comply with the qualification requirements of the Internal Revenue Code (IRC).The ABP received a determination letter that it complies with the qualification requirements of the IRC in September 2012. The DCRP received a similar determination letter in January 2013. The NJSEDCP is an eligible plan as described in Section 457 of the IRC. Commitments The Common Pension Funds are obligated, under certain private equity, real estate, real asset, and absolute return strategy alternative investment and global diversified credit fund agreements to make additional capital contributions up to contractual levels over the investment period specified for each investment. As of June 30, 2013, the Common Pension Funds had unfunded commitments totaling approximately $8.9 billion. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates. Funded Status and Funding Progress The required supplementary information regarding the funded status and funding progress is based on actuarial valuations which involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. These amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the probability of future events. The required schedule of funding progress presents multi year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. Actuarial calculations reflect a long term perspective and are based on the benefits provided under State statutes in effect at the time of each valuation and also consider the pattern of the sharing of costs between the employer and members at that point in time. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and members in the future.

New Jersey Division of Pensions and Benefits 53 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

Actuarial Methods and Assumptions In the July 1, 2012 actuarial valuations, the date of the most recent actuarial valuations, the projected unit credit was used as actuarial cost method, and the five year average of market value was used as asset valuation method for pension trust funds. The actuarial assumptions included (a) 7.90% for investment rate of return for all the retirement systems except POPF (5.00%) and CPFPF (2.00%) and (b) changes to projected salary increases, which vary by fund and are presented on the following pages. OPEB used the projected unit credit as actuarial cost method. The actuarial assumptions for OPEB included 4.50% for investment rate of return.

54 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

A summary of the significant actuarial methods and assumptions used by the Funds and Systems as of the most recent actuarial date of July 1, 2012 are as follows:

JRS CPFPF PFRS - State PFRS - Local POPF Actuarial valuation date July 1, 2012 July 1, 2012 July 1, 2012 July 1, 2012 July 1, 2012 Actuarial value of assets $278,548,470 $6,282,439 $2,074,049,503 $21,500,537,273 $9,044,236 Actuarial accrued liability 605,180,634 8,026,421 4,026,954,882 27,705,168,437 5,395,505 Unfunded (overfunded) actuarial accrued liability 326,632,164 1,743,982 1,952,905,379 6,204,631,164 (3,648,731) Funded ratio 46.0% 78.3% 51.5% 77.6% 167.6% Covered payroll $67,497,660 N/A $517,324,007 $3,138,894,566 N/A Unfunded (overfunded) actuarial accrued liability as a percentage of covered payroll 483.9% N/A 377.5% 197.7% N/A Projected unit Projected unit Projected unit Projected unit Projected unit Actuarial cost method credit credit credit credit credit

5 year average of 5 year average of 5 year average of 5 year average of Asset valuation method market value market value market value market value Market value

Level dollar, Level dollar, Level dollar, Level dollar, Level dollar, Amortization method open closed open open closed Remaining amortization period 30 years 1 year 30 years 30 years 1 year Actuarial assumptions: Interest rate 7.90% 2.00% 7.90% 7.90% 5.00% Salary range 2.50% N/A 6.01% 6.01% N/A Cost-of-living adjustments —% N/A —% —% N/A

New Jersey Division of Pensions and Benefits 55 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

PERS - State PERS - Local SPRS TPAF Actuarial valuation date July 1, 2012 July 1, 2012 July 1, 2012 July 1, 2012 Actuarial value of assets $9,512,074,226 $19,374,461,309 $1,969,806,447 $31,214,185,683 Actuarial accrued liability 19,383,584,639 26,009,038,341 2,767,768,813 52,637,346,396 Unfunded (overfunded) actuarial accrued liability 9,871,510,413 6,634,577,032 797,962,366 21,423,160,713 Funded ratio 49.1% 74.5% 71.2% 59.3% Covered payroll $4,570,958,470 $6,862,133,165 $283,219,927 $9,779,212,916

Unfunded (overfunded) actuarial accrued liability as a percentage of covered payroll 216.0% 96.7% 281.7% 219.1% Projected unit Projected unit Projected unit Projected unit, Actuarial cost method credit credit credit credit 5 year average of 5 year average of 5 year average of 5 year average of Asset valuation method market value market value market value merket value

Level dollar, Level dollar, Level dollar, Level dollar, Amortization method open open open open Remaining amortization period 30 years 30 years 30 years 30 years Actuarial assumptions: Interest rate 7.90% 7.90% 7.90% 7.90% Salary range 4.22% 4.22% 3.45% 3.51% Cost-of-living adjustments —% —% —% —%

SHBP - State SHBP - Local SHBP - Education Actuarial valuation date July 1, 2012 July 1, 2012 July 1, 2012 Actuarial value of assets $ — $ — $ — Actuarial accrued liability 19,319,700,000 12,378,100,000 32,182,900,000 Unfunded (overfunded) actuarial accrued liability 19,319,700,000 12,378,100,000 32,182,900,000 Funded ratio — — — Covered payroll $7,695,193,894 $2,937,000,000 $12,818,706,106 Unfunded (overfunded) actuarial accrued liability as a percentage of covered payroll 251.1% 421.5% 251.1% Actuarial cost method Projected unit credit Projected unit credit Projected unit credit Amortization method Level dollar, open Level dollar, open Level dollar, open Remaining amortization period 30 years 30 years 30 years Actuarial assumptions: 4.50% 4.50% 4.50% Interest rate (assuming no prefunding) (assuming no prefunding) (assuming no prefunding) Salary range N/A N/A N/A Cost-of-living adjustments N/A N/A N/A For medical benefits, the healthcare cost trend rate assumption initially is at 8.5% and decreases to a 5.0% long-term trend rate for all medical benefits after 8 years, except for NJ Direct Post-65 whose rate assumption is 5.0% throughout 8 years. For prescription drug benefits, the initial healthcare cost trend rate assumption is 8.5% decreasing to a 5.0% long-term trend rate after 8 years. For Medicare Part B reimbursement, the healthcare cost trend rate assumption is 5.0% throughout 8 years.

56 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(3) INVESTMENTS

The Division’s investments (including investments held directly by the Common Pension Funds)as of June 30, 2013 are as follows:

Common Total Other Funds (3) Pension Funds Cash management funds $2,287,515,729 1,430,095,502 857,420,227 Domestic equities 23,860,613,277 22,374,438,659 1,486,174,618 International equities 13,398,919,561 13,128,941,985 269,977,576 Domestic fixed income 12,756,621,284 11,493,775,308 1,262,845,976 International fixed income (1) 2,773,410,320 2,728,024,198 45,386,122 Global diversified credit funds 1,814,698,753 1,814,698,753 — Police and Firemen’s mortgages 835,483,242 835,483,242 — Private equity funds 6,006,689,452 6,006,689,452 — Real estate funds 3,513,185,996 3,513,185,996 — Absolute return strategy funds 7,369,340,961 7,369,340,961 — Real assets 1,523,110,312 1,523,110,312 — Put options 6,675,000 6,675,000 — Future contracts (233,000) (233,000) — Other (2) 2,744,258,018 2,744,258,018 — $78,890,288,905 74,968,484,386 3,921,804,519

(1) Primary US dollar denominated securities (2) Includes assets (other than investments) and liabilities included in the net position of the Common Pension Funds (3) Includes SACT, NJSEDCP, CPF, ABPLTD, DCRP, Health, and Agency Funds

On June 12, 2013 Common Pension Fund E entered into a secondary sale agreement to sell 25 real estate funds valued at approximately $925 million. The agreement included a $50 million deposit, which will be applied to the first $50 million of transferred interest. The sales agreement called for 55% of purchase price to be paid upon closing and the remaining 45% to be paid over the course of four years. Subsequent to June 30, 2013, Common Pension Fund E closed on 10 of the 25 real estate funds included in the secondary sale agreement that was entered into on June 12, 2013. New Jersey state statute provides for a State Investment Council (Council) and a Director. Investment authority is vested in the Director of the Division of Investment and the role of the Council is to formulate investment policies. The Council issues regulations which establish guidelines for permissible investments for the Common Pension Funds managed by the Division of Investment, which include domestic and international equities and exchange traded funds, covered call options, put options, equity futures contracts, obligations of the U.S. Treasury, government agencies, corporations, international governments and agencies, global diversified credit investments, interest rate swap transactions, credit default swaps, fixed income exchange traded funds, U.S. Treasury futures contracts, state and municipal general obligations, public authority revenue obligations, collateralized notes and mortgages, commercial paper, certificates of deposit, repurchase agreements, bankers acceptances, guaranteed income contracts, funding agreements, money market funds, private equity funds, real estate funds, other real assets, absolute return strategy funds, and the State of New Jersey Cash Management Fund (CMF). The CMF is a short term cash fund and is open to state and certain nonstate participants. The funds’ investment in the CMF is not evidenced by securities that exist in physical or book entry form held by the funds.

New Jersey Division of Pensions and Benefits 57 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(3) INVESTMENTS, Continued Custodial credit risk, as it relates to investments, is the risk that in the event of the failure of the custodian, the funds will not be able to recover the value of investments or collateral securities that are in the possession of the third party. The funds’ investment securities are not exposed to custodial credit risk as they are held in segregated trust accounts in the name of the funds with the custodians. The Division’s investments are subject to various risks. Among these risks are credit risk, concentration of credit risk, interest rate risk, and foreign currency risk. Each one of these risks is discussed in more detail below. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The credit risk of issuers and debt instruments is evaluated by nationally recognized statistical rating agencies such as Moody’s Investors Service, Inc. (Moody’s), Standard & Poor’s Corporation (S&P), and Fitch Ratings (Fitch). Concentration of credit risk is the risk of loss attributed to the magnitude of an investment in a single issuer. There are no restrictions in the amount that can be invested in United States Treasury and government agency obligations. Council regulations require minimum credit ratings for certain categories of fixed income obligations held directly by the various funds and limit the amount that can be invested in any one issuer or issue.

58 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(3) INVESTMENTS, Continued

The credit ratings and limits for the Common Pension Funds as of June 30, 2013 are as follows:

Limitation of Minimum Rating (1) Issuer’s Outstanding Limitation Category Moody’s S&P Fitch Debt/Stock of Issue Other Limitations

Certificates of deposit and Investment in certificates of Banker’s acceptances: deposit and banker’s accept- Domestic A3/P-1 A-/A-1 A-/F1 — — ances cannot exceed 10% of International Aa3/P-1 AA-/A-1 AA-/F1 — — issuer’s primary capital Collateralized notes and Baa3 BBB- BBB- — 25% Not more than 5% of fund mortgages assets can be invested in any one issue; not more than 10% of fund assets (or 20% of Common Pension Fund B assets) can be invested in this category

Commercial paper P-1 A-1 F1 — — — Corporate obligations Baa3 BBB- BBB- 10% — Not more than 5% of fund assets can be invested in debt and nonconvertible preferred stock of one issuer Credit default swap A1 A+ A+ — — Nominal value of net exposure transactions to any one counterparty shall not exceed 10% of fund assets Fixed income exchange — — — — — Not more than 4% of fund traded funds assets can be invested in any one exchange traded fund. Limited to 5% of shares or units outstanding

Global diversified credit Not more than 7% of pension investments: and annuity fund assets can Direct bank loans Baa3 BBB- BBB- 10% — be invested in this category Funds Baa3 BBB- BBB- — — Guaranteed income contracts A3 A- A- — — — and funding agreements Interest rate swap A1 A+ A+ — — Notional value of net exposure transactions to any one counterpart shall not exceed 10% of fund assets International corporate Baa3 BBB- BBB- 10% — Not more than 5% of fund obligations assets can be invested in debt and nonconvertible preferred stockof any one issuer; not more than 25% of the pension and annuity fund assets can be invested in this category

New Jersey Division of Pensions and Benefits 59 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(3) INVESTMENTS, Continued

Limitation of Minimum Rating (1) Issuer’s Outstanding Limitation Category Moody’s S&P Fitch Debt/Stock of Issue Other Limitations

International government and Baa3 BBB- BBB- 25% Greater of 25% Not more than 5% of fund agency obligations or $10 million assets can be invested in any one issuer; Not more than 5% of the pension and annuity fund assets can be invested in this category Money market fund — — — — — Not more than 10% of fund assets can be invested in money market funds; limited to 5% of shares or units outstanding Mortgage backed pass-through A3 A- A- — — Not more than 5% of fund securities assets can be invested in any one issue

Mortgage backed senior debt — — — — 25% Not more than 5% of fund securities assets can be invested in any one issue Nonconvertible preferred stocks Baa3 BBB- BBB- 10% 25% Not more than 5% of fund of US corporations assets can be invested in debt and nonconvertible stock of any one corporation Public authority revenue A3 A- A- — 10% Not more than 2% of fund obligations assets can be invested in any one public authority Repurchase agreements Bank or trust company — — — — — — Broker P-1 A-1 F1 — — — State and municipal general A3 A- A- 10% 10% Not more than 2% of fund obligations assets can be invested in debt of any one political entity maturing more than 12 months from purchase (1) Short term ratings (e.g. P-1, A-1, F-1) are used for commercial paper and certificates of deposit.

The above table does not include Prudential Retirement investments for the NJSEDCP.The NJSEDCP consists of a number of individual investment managers, which individually have investment guidelines that they comply with and follow. Up to 8% of the market value of the combined assets of the pension funds may be invested in corporate obligations, international corporate obligations, collateralized notes and mortgages, global diversified credit investments, nonconvertible preferred stock, and mortgage backed pass through securities that do not meet the minimum credit rating requirements set forth above.

60 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(3) INVESTMENTS, Continued

For securities in the fixed income portfolio, the following tables disclose aggregate market value, by major credit quality rating category as of June 30, 2013. The tables include the fixed income securities held directly by the Common Pension Funds, as well as those held by Prudential Retirement. The first table includes fixed income securities rated by Moody’s. The second table discloses Standard & Poor’s ratings for fixed income securities not rated by Moody’s. The third table discloses Fitch ratings for fixed income securities not rated by Moody’s or Standard & Poor’s (in thousands).

Moody’s Rating (1)

Aaa Aa A Baa Ba B C Ca Caa Unrated Totals

Corporate obligations $417,134 725,168 2,134,737 2,303,720 462,816 708,008 156 2,314 316,401 2,247 7,072,701 United States treasury tips 1,605,922 — — — — — — — — — 1,605,922 United States treasury bonds 1,042,942 — — — — — — — — — 1,042,942 Foreign government obligations 645,455 1,642,562 42,742 3,667 — 1 — — — 72 2,334,499

International corporate obligations 21,466 9,022 275,068 233,085 60,399 64,407 — — 20,677 327 684,451

Mortgages (FHLMC/FNMA/GNMA) 320,763 7,556 2,588 741 191 103 — 52 222 11,930 344,146 United States government strips 114,690 — — — — — — — — — 114,690 Federal agency obligations 331,247 — — — — — — — — 2,155 333,402 SBA pass through certificates 118,543 — — — — — — — — — 118,543 Other 79,817 725,812 300,551 310 15 — — — — 222,552 1,329,057 $4,697,979 3,110,120 2,755,686 2,541,523 523,421 772,519 156 2,366 337,300 239,283 14,980,353

Standard and Poor’s Rating

A AA AAA B BB BBB CCC D Totals

Corporate obligations $162,0098 — — 18,966 2,529 97,719 3,650 305 285,267 International corporate obligations — — — 3,754 2,062 1,066 — — 6,882 Other 17,187 52,887 37,292 — — — — — 107,366 $179,285 52,887 37,292 22,720 4,591 98,785 3,650 305 399,515

Fitch Rating

A B BB CCC Totals

Corporate obligations 29,770 724 4,601 3,543 38,638

International corporate obligations — 903 — — 903

29,770 1,627 4,601 3,543 39,541

The tables do not include certain domestic and international corporate obligations and certain exchange traded funds (ETFs) totaling $110,622,390 which invest in an underlying portfolio of fixed income securities and do not have a Moody’s, Standard & Poor’s or Fitch rating. The above tables also do not include Police and Firemen’s mortgages totaling $835,483,242, and the Cash Management Fund totaling $2,287,515,729, which are not rated. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. Commercial paper must mature within 270 days. Certificates of deposits and bankers acceptances are limited to a term of one year or less. Repurchase agreement must mature within 30 days. The investment in guaranteed income contracts and funding agreements is limited to a term of 10 years or less.

New Jersey Division of Pensions and Benefits 61 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013 (3) INVESTMENTS, Continued

As of June 30, 2013, the credit ratings of the counterparties to the forward currency contracts held by the Common Pension Funds had a Moody’s credit rating of no less than A3. The following table summarizes the maturities (or, in the case of Remics, Police and Firemen’s Mortgages and mortgage-backed securities, the expected average life) of the fixed income portfolio as of June 30, 2013. The table includes investments held directly by the Common Pension Funds, as well as those held by Prudential Retirement (in thousands).

Maturities in Years Less More Total Fixed Income Investment Type than 1 1-5 6-10 than 10 Unknown Fair Value Corporate obligations $11,869 1,373,422 3,254,107 2,802,070 — 7,441,467 United States treasury itips 55,690 752,320 697,691 100,221 — 1,605,922 United States treasury bonds — 743,206 36,490 263,246 — 1,042,942 Foreign government obligations 550 267,157 1,428,570 638,222 — 2,334,499 International corporate obligations 13,291 98,068 218,768 375,205 — 705,332 Mortgages (FHLMC/FNMA/GNMA) 335 1,120 6,169 336,522 — 344,146 United States government strips — — — 114,690 — 114,690 Federal agency obligations — 36,240 201,512 95,650 — 333,402 SBA pass through certificates — 41,226 77,317 — — 118,543 Police and Firemen’s mortgage program 3 1,941 20,282 813,257 — 835,483 Asset backed obligations — — — 52,665 — 52,665 Other 1,345 11,439 169,944 1,253,404 291 1,436,423 $83,083 3,326,139 6,110,850 6,845,152 291 16,365,514

The Common Pension Funds invest in global markets. Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of an investment.The market value of international preferred and common stocks and debt issues convertible into common stock, and the shares or interest in international exchanged-traded, global, regional, or country funds, when combined with the market value of international government, agency and corporate obligations, cannot exceed 30% of the market value of the pension funds. The market value of emerging market securities cannot exceed 50% of the percentage derived by dividing the total market capitalization of companies included in the Morgan Stanley Capital International (MSCI) Emerging Market Index by the total market capitalization of the companies included in the MSCI All-Country World Ex-United States Index of the total market value of the combined assets of the pension funds. Not more than 10% of the market value of the emerging market securities held by the Common Pension Funds can be invested in the common and preferred stock of any one corporation. The total amount of stock purchased of any one corporation cannot exceed 5% of its stock classes eligible to vote. Council regulations permit the pension funds to enter into foreign exchange contracts for the purpose of hedging the international portfolio.

62 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013 (3) INVESTMENTS, Continued The Common Pension Funds and Prudential Retirement had the following foreign currency exposure as of June 30, 2013 (expressed in U.S. dollars):

Fixed Alternative Total Currency Equities Income Investments Fair Value Australian dollar $600,121,096 — — 600,121,096 Brazilian real 239,794,417 — — 239,794,417 Canadian dollar 897,468,737 43,052,194 — 940,520,931 Czech koruna 3,305,748 — — 3,305,748 Danish krone 82,784,766 — — 82,784,766 Egyptian pound 9,684,297 — — 9,684,297 Euro 2,341,948,554 — 338,807,013 2,680,755,567 Hong Kong dollar 630,737,634 — — 630,737,634 Hungarian forint 33,657,099 — — 33,657,099 Indonesian rupiah 125,243,905 — — 125,243,905 Israeli shekel 26,310,123 — — 26,310,123 Japanese yen 1,991,581,903 — — 1,991,581,903 Malaysian ringgit 66,208,390 — — 66,208,390 Mexican peso 67,859,670 — — 67,859,670 New Taiwan dollar 18,366,102 — — 18,366,102 Norwegian krone 68,775,179 — — 68,775,179 Pakistan rupee 9,971,183 — — 9,971,183 Philippine peso 60,539,211 — — 60,539,211 Polish zloty 48,118,404 — — 48,118,404 Pound sterling (U.K.) 1,520,203,551 157,533,896 31,232,373 1,708,969,820 Singapore dollar 162,881,338 — — 162,881,338 South African rand 202,640,032 — — 202,640,032 South Korean won 395,339,362 — — 395,339,362 Swedish krona 267,112,600 — — 267,112,600 Swiss franc 911,435,859 — — 911,435,859 Thailand baht 110,433,746 — — 110,433,746 Turkish lira 127,708,583 — — 127,708,583 US dollar 231,847,633 — — 231,847,633 Other 10,856,425 — — 10,856,425 $11,262,935 200,586,090 370,039,386 11,833,561,023

The pension funds’ interests in alternative investments may contain elements of credit, currency and market risk. Such risks include, but are not limited to, limited liquidity, absence of regulatory oversight, dependence upon key individuals, speculative investments (both derivatives and nonmarketable investments), and nondisclosure of portfolio composition. Council regulations provide that not more than 38% of the market value of the pension funds can be invested in alternative investments, with limits on the individual investment categories of real estate (9%), real assets (7%), private equity (12%) and absolute return strategy (15%). Not more than 5% of the market value of Common Pension Fund E, plus outstanding commitments, may be committed to any one partnership or investment, without the prior written approval of the Council. The investments in Common Pension Fund E cannot comprise more than 20% of any one investment manager’s total assets.

New Jersey Division of Pensions and Benefits 63 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(3) INVESTMENTS, Continued

As of June 30, 2013, the net position of Common Pension Fund E included $299 million related to the secondary sale of certain private equity funds which is due from the purchasers in November and December 2013. (4) SECURITIES LENDING COLLATERAL The securities lending collateral is subject to various risks. Among these risks are custodial credit risk, credit risk, concentration of credit risk, and interest rate risk. Securities lending collateral is invested in repurchase agreements, the maturities of which cannot exceed 30 days. The collateral for repurchase agreements is limited to obligations of the U.S. Government or certain U.S. Government agencies, collateralized notes and mortgages and corporate obligations meeting certain minimum rating criteria. Total exposure to any individual issuer is limited consistent with internal policies for funds managed by the Division of Investment. For securities exposed to credit risk in the collateral portfolio, the following table discloses aggregate fair value, by major credit quality rating category as of June 30, 2013 (in thousands). Rating Aaa/AAA Not Rated Totals Repurchase agreements $1,650,000 — $1,650,000 Cash — (94,563) (94,563) $1,650,000 (94,563) $1,555,437 Custodial credit risk for investments is the risk that in the failure of the counterparty to the transaction, the pension funds will not recover the value of the investments that are in the possession of an outside party. The repurchase agreement’s underlying securities are held in the pension funds’ name. As of June 30, 2013, the pension funds had outstanding loaned investment securities with an aggregate market value of $1,508,264,740 and did not hold any noncash collateral. There were no borrowers or lending agent default losses, and no recoveries or prior period losses during the year. Overinvested cash is the result of loans being returned after investments in repurchase agreements were already finalized for the day.

64 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(5) CONTRIBUTIONS The information as reflected below represents actual contributions from the State, and the percentages as derived are inclusive of such actual contributions made for fiscal year 2013. These amounts and percentages as presented below may be different than those reflected in Schedule 2, as the amounts and percentages as shown in Schedule 2 include NCGI contributions for the applicable funds and are estimates based upon the most recent actuarial valuations. Contribution Requirements – JRS The contribution policy is set by N.J.S.A. 43:6A and requires contributions by active members and the State of New Jersey. Plan member and employer contributions may be amended by State of New Jersey legislation. Members enrolled on January 1, 1996 or after, contribute at 3% on their entire base salary. Contributions by active members enrolled prior to January 1, 1996 are based on 3% of the difference between their current salary and the salary of the position on January 18, 1982. Pursuant to the provisions of Chapter 78, P.L. 2011, the active member contribution rate is being increased from 3% to 12%, phased-in over seven years for members hired or reappointed after June 28, 2011. For fiscal year 2012, the member contribution rate for new members increased in October 2011. The phase- in of the additional incremental member contribution rate takes place in July of each subsequent fiscal year. The member contribution rate was 5.56% in fiscal year 2013. The State of New Jersey contribution amount is based on an actuarially determined rate. The annual employer contributions include funding for basic retirement allowances, cost-of-living adjustments and noncontributory death benefits. Chapter 1, P.L. 2010, effective May 21, 2010, required the State to resume making actuarially recommended contributions to the pension plans on a phased-in basis over a seven-year period beginning in fiscal year 2012. For fiscal year 2013, the State’s minimum required contribution was 2/7th of the full recommended amounts determined on the basis of the July 1, 2011 actuarial valuation. The State made a contribution of $11.6 million, excluding the State’s contribution for noncontributory group life insurance (NCGI) of $0.7 million, for fiscal year 2013. The amount contributed for fiscal year 2013 is equal to 2/7th or 28.6% of the actuarially determined contribution amount per State statute. Additionally, the amount contributed equals 25.6% of the Annual Required Contribution (ARC) determined per the requirements of GASB Statement No. 25 and GASB Statement No. 27, Accounting for Pensions by State and Local Governmental Employers (GASB Statement No. 27). Contribution Requirements – CPFPF There are no active members in the CPFPF. The State made a contribution of $0.9 million. Local employers contributed $14.1 thousand, representing administrative fees billed to various locations in fiscal year 2013. Contribution Requirements – PFRS The contribution policy is set by N.J.S.A. 43:16A and requires contributions by active members and contributing employers. Plan member and employer contributions may be amended by State of New Jersey legislation. Employers’ contribution amounts are based on an actuarially determined rate. The annual employer contributions include funding for basic retirement allowances, cost-of-living adjustments, and noncontributory death benefits. Pursuant to the provisions of Chapter 78, P.L. 2011, the active member contribution rate increased from 8.5% to 10% in October 2011.

New Jersey Division of Pensions and Benefits 65 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(5) CONTRIBUTIONS, Continued

Chapter 19, P.L.2009, effective March 17, 2009, provided an option for local employers to contribute 50% of the normal and accrued liability contribution amounts certified by PFRS for payments due in State fiscal year 2009. This law also provided that a local employer may pay 100% of the required contribution. Such an employer will be credited with the full payment and any such amounts will not be included in their unfunded liability. The actuaries for PFRS will determine the unfunded liability of those retirement systems, by employer, for the reduced normal and accrued liability contributions provided under this law.This unfunded liability will be paid by the employer in level annual payments over a period of 15 years beginning with the payments due in the State fiscal year ending June 30, 2012 and will be adjusted by the rate of return on the actuarial value of assets. Chapter 1, P.L.2010, effective May 21, 2010, required the State to resume making actuarially recommended contributions to the pension plans on a phased-in basis over a seven-year period beginning in fiscal year 2012. For fiscal year 2013, the State’s minimum required contribution was 2/7th of the full recommended amounts determined on the basis of the July 1, 2011 actuarial valuation. The State made this contribution of $112.5 million, excluding $6.4 million for NCGI and $0.2 million for miscellaneous items due to the system, for fiscal year 2013. The amount contributed for fiscal year 2013 is equal to 2/7th or 28.6% of the actuarially determined contribution amount per State statute. Additionally, the amount contributed equals 25.8% of the ARC determined per the requirements of GASB Statements No. 25 and 27. The local employers’ contribution amounts include the billing for their pension, NCGI, Early Retirement Incentive (ERI) contributions for those who participate in the various ERI programs, and other miscellaneous items that are due to the system. For fiscal year 2013, the amount accrued for the annual appropriation billings due April 1, 2014 is $777.0 million. Contribution Requirements – POPF There are no active members in the POPF. Accordingly, based on actuarial valuation, there is no normal cost or accrued liability contribution required by employers for fiscal year 2013. Contribution Requirements – PERS The contribution policy is set by N.J.S.A. 43:15A and requires contributions by active members and contributing employers. Plan member and employer contributions may be amended by State of New Jersey legislation. Members contribute at a uniform rate. Pursuant to the provisions of Chapter 78, P.L. 2011, the active member contribution rate increased from 5.5% of annual compensation to 6.5% plus an additional 1% phased-in over 7 years beginning in July 2012. The member contribution rate was 6.64% in fiscal year 2013. The phase-in of the additional incremental member contribution rate takes place in July of each subsequent fiscal year. The rate for members who are eligible for the Prosecutors Part of PERS (Chapter 366, P.L. 2001) increased from 8.5% of base salary to 10%. Employers’ contribution amounts are based on an actuarially determined rate. The annual employer contributions include funding for basic retirement allowances, cost-of-living adjustments, and noncontributory death benefits. Chapter 19, P.L.2009, effective March 17, 2009, provided an option for local employers to contribute 50% of the normal and accrued liability contribution amounts certified by PERS for payments due in State fiscal year 2009. This law also provided that a local employer may pay 100% of the required contribution. Such an employer will be credited with the full payment and any such amounts will not be included in their unfunded liability.The actuaries for PERS will determine the unfunded liability of those retirement systems, by employer, for the reduced normal and accrued liability contributions provided under this law.This unfund-

66 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(5) CONTRIBUTIONS, Continued

ed liability will be paid by the employer in level annual payments over a period of 15 years beginning with the payments that were due in the State fiscal year ended June 30, 2012 and will be adjusted by the rate of return on the actuarial value of assets. Chapter 1, P.L.2010, effective May 21, 2010, required the State to resume making actuarially recommended contributions to the pension plans on a phased-in basis over a seven-year period beginning in fiscal year 2012. For fiscal year 2013, the State’s minimum required contribution was 2/7th of the full recommended amounts determined on the basis of the July 1, 2011 actuarial valuation. The State made this contribution of $264.1 million, excluding $36.9 million for NCGI, $1.5 million for miscellaneous items due to the system and $42.6 million for the current year present value of the State’s ERI liability, for fiscal year 2013. The amount contributed for fiscal year 2013 is equal to 2/7th or 28.6% of the actuarially determined contribution amount per State statute. Additionally, the amount contributed equals 25.3% of the ARC determined per the requirements of GASB Statements No. 25 and 27. The local employers’ contribution amounts include the billing for their pension, NCGI, ERI contributions for those who participate in the various ERI programs, and other miscellaneous items that are due to the system. For fiscal year 2013, the amount accrued for the annual appropriation billings due April 1, 2014 is $834.6 million. Contribution Requirements – SPRS The contribution policy is set by N.J.S.A. 53:5A and requires contributions by active members and the State of New Jersey. Plan member and employer contributions may be amended by State of New Jersey legislation. Pursuant to the provisions of Chapter 78, P.L. 2011, the active member contribution rate increased from 7.5% to 9% in October 2011. The State of New Jersey contribution amount is based on an actuarially determined rate. The annual employer contributions include funding for basic retirement allowances, cost of living adjustments and noncontributory death benefits. Chapter 1, P.L.2010, effective May 21, 2010, required the State to resume making actuarially recommended contributions to the pension plans on a phased-in basis over a seven-year period beginning in fiscal year 2012. For fiscal year 2013, the State’s minimum required contribution was 2/7th of the full recommended amounts determined on the basis of the July 1, 2011 actuarial valuation. The State made a contribution of $25.6 million, excluding the State’s contribution for NCGI of $2.2 million, for fiscal year 2013. The amount contributed for fiscal year 2013 is equal to 2/7th or 28.6% of the actuarially determined contribution amount per State statute. Additionally, the amount contributed equals 25.6% of the ARC determined per the requirements of GASB Statements No. 25 and 27. Contribution Requirements – TPAF The contribution policy is set by N.J.S.A. 18A:66 and requires contributions by active members and contributing employers. Plan member and employer contributions may be amended by State of New Jersey legislation. Pursuant to the provisions of Chapter 78, P.L. 2011, the active member contribution rate increased from 5.5% of annual compensation to 6.5% plus an additional 1% phased-in over 7 years beginning in July 2012. The member contribution rate was 6.64% in fiscal year 2013. The phase-in of the additional incremental member contribution rate takes place in July of each subsequent fiscal year. The State of New Jersey contribution amount is based on an actuarially determined rate. The annual employer contributions include funding for basic retirement allowances, cost-of-living adjustments, and noncontributory death benefits.

New Jersey Division of Pensions and Benefits 67 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(5) CONTRIBUTIONS, Continued

Chapter 1, P.L.2010, effective May 21, 2010, required the State to resume making actuarially recommended contributions to the pension plans on a phased-in basis over a seven-year period beginning in fiscal year 2012. For fiscal year 2013, the State’s minimum required contribution was 2/7th of the full recommended amounts determined on the basis of the July 1, 2011 actuarial valuation. The State made this contribution of $614.6 million, excluding $33.3 million for NCGI, $5.8 million for miscellaneous items due to the system, and $1.7 million for the current year present value of the State’s ERI liability, for fiscal year 2013. The amount contributed for fiscal year 2013 is equal to 2/7th or 28.6% of the actuarially determined contribution amount per State statute. Additionally, the amount contributed equals 26.4% of the ARC determined per the requirements of GASB Statements No. 25 and 27. Contribution Requirements – SACT Participants contribute through payroll deductions and may contribute from 1% to 100% of their base salary, as defined. Contributions are voluntary and may be suspended at the beginning of any quarter. Contributions under the Tax Sheltered Supplemental Annuity Plan are subject to Federal law limitations and qualify for tax sheltered treatment permitted under Section 403(b) of the IRC. Participants are always fully vested for the accumulated units in their accounts. Contribution Requirements – CPF The State of New Jersey makes an annual appropriation payment to the CPF to pay current year benefits. The contribution requirements were established by the aforementioned statutes and are not actuarially determined. The contribution amount required and paid by the State of New Jersey for the fiscal year ended June 30, 2013 was $168.0 thousand. Contribution Requirements – SHBP – State (including PDP – State) Contributions to pay for the health premiums of participating employees in the SHBP – State are collected from the State of New Jersey, active and retired members, and former active and retired members who have elected to participate under the rules of the Consolidated Omnibus Budget Reconciliation Act (COBRA). The State of New Jersey provides contributions for State employees through State appropriations. These appropriations are generally distributed to the SHBP on a monthly basis. Active and retired member contributions are generally received on a monthly basis. Contributions to pay for the premiums of participating employees in the PDP are collected from the State of New Jersey, and former active and retired members who have elected to participate under the rules of COBRA. The State of New Jersey provides contributions for State employees through State appropriations. These appropriations are distributed to the PDP on a monthly basis. The State made a contribution of $1.7 billion, including administrative revenue of $3.9 million, for fiscal year 2013. Chapter 103, P.L.2007 implemented changes to SHBP and established an employee contribution of 1.5% of the employee’s base salary for State employees, effective July 1, 2007. Chapter 2, P.L. 2010, effective May 21, 2010, requires a minimum contribution of 1.5% of base salary toward the cost of health care benefits coverage by all active public employees. Employees of the State, local governments, and boards of education who become a member of a State or locally administered retirement system on or after the law’s effective date would be required to pay in retirement 1.5% of their pension benefit toward the cost of health care coverage under the SHBP.

68 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(5) CONTRIBUTIONS, Continued

Chapter 78, P.L. 2011, effective June 28, 2011, established new employee contribution requirements towards the cost of employer provided health benefit coverage. Employees are required to contribute a certain percentage of the cost of coverage. The rate of contribution is determined based on the employee’s annual salary and the selected level of coverage. The increased employee contributions will be phased-in over a four-year period for those employed prior to Chapter 78’s effective date with a minimum contribution required to be at least 1.5% of salary. For those employed on or after June 28, 2011, the four-year phase- in does not apply, and contributions based on the full percentage rate of contribution are required. Under Chapter 78, certain future retirees eligible for state paid health care coverage at retirement are also required to pay a percentage of the cost of their medical coverage determined on the basis of their annual retirement benefit. Contribution Requirements – SHBP – Local (including PDP – Local) Contributions to pay for the health premiums of participating employees in the SHBP – Local are collected from the State of New Jersey, participating local employers, active members and retired members. Local employer payments and active and retired member contributions are generally received on a monthly basis. Contributions to pay for the premiums of participating employees in the PDP are collected from participating local employers, and former active and retired members who have elected to participate under the rules of COBRA. Local employer payments as well as COBRA contributions are also received on a monthly basis. Local employers participating in the SHBP – Local made a contribution of $1.1 billion, including administrative revenue of $2.1 million, for fiscal year 2013. Chapter 2, P.L. 2010, effective May 21, 2010, requires a minimum contribution of 1.5% of base salary toward the cost of health care benefits coverage by all active public employees. Employees of the State, local governments, and boards of education who become a member of a State or locally administered retirement system on or after the law’s effective date would be required to pay in retirement 1.5% of their pension benefit toward the cost of health care coverage under the SHBP. Chapter 78, P.L. 2011, effective June 28, 2011, established new employee contribution requirements towards the cost of employer provided health benefit coverage. Employees are required to contribute a certain percentage of the cost of coverage. The rate of contribution is determined based on the employee’s annual salary and the selected level of coverage. The increased employee contributions will be phased in over a four-year period for those employed prior to Chapter 78’s effective date with a minimum contribution required to be at least 1.5% of salary. For those employed on or after June 28, 2011, the four-year phase- in does not apply, and contributions based on the full percentage rate of contribution are required. Under Chapter 78, certain future retirees eligible for state-paid health care coverage at retirement are also required to pay a percentage of the cost of their medical coverage determined on the basis of their annual retirement benefit. Contribution Requirements – SHBP – Education (including PDP – Education) Contributions to pay for the health premiums of participating employees in the SHBP – Education are collected from the State of New Jersey, participating local employers, active members and retired members. Local employer payments and active and retired member contributions are generally received on a monthly basis. Contributions to pay for the premiums of participating employees in the PDP are collected from participating local employers, and former active and retired members who have elected to participate under the rules of COBRA. Local employer payments as well as COBRA contributions are also received on a monthly basis.

New Jersey Division of Pensions and Benefits 69 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(5) CONTRIBUTIONS, Continued

Local employers participating in the SHBP – Education made a contribution of $2.3 billion, including administrative revenue of $4.9 million, for fiscal year 2013. Chapter 2, P.L. 2010, effective May 21, 2010, requires a minimum contribution of 1.5% of base salary toward the cost of health care benefits coverage by all active public employees. Employees of the State, local governments, and boards of education who become a member of a State or locally administered retirement system on or after the law’s effective date would be required to pay in retirement 1.5% of their pension benefit toward the cost of health care coverage under the SHBP. Chapter 78, P.L. 2011, effective June 28, 2011, established new employee contribution requirements towards the cost of employer provided health benefit coverage. Employees are required to contribute a certain percentage of the cost of coverage. The rate of contribution is determined based on the employee’s annual salary and the selected level of coverage. The increased employee contributions will be phased in over a four-year period for those employed prior to Chapter 78’s effective date with a minimum contribution required to be at least 1.5% of salary. For those employed on or after June 28, 2011, the four-year phase- in does not apply, and contributions based on the full percentage rate of contribution are required. Under Chapter 78, certain future retirees eligible for state-paid health care coverage at retirement are also required to pay a percentage of the cost of their medical coverage determined on the basis of their annual retirement benefit. Contribution Requirements – NJSEDCP Participants may defer between 1% and 100% of their salary and less any IRC Section 414(h) reductions or $17.5 thousand annually. Under the limited “catch-up” provision, a participant may be eligible to defer up to a maximum of twice the annual maximum in the three years immediately preceding the retirement age at which no reduction in benefits would be applicable. The employer does not make contributions to the Plan. Contribution Requirements – DCRP The DCRP was established for elected and certain appointed officials by Chapter 92, P.L. 2007, effective July 1, 2007. State and local government employers contribute 3% of the employees’ base salary. Active members contribute 5.5% of base salary. Chapter 103, P.L. 2007, effective July 1, 2007, imposed an annual maximum wage contribution base (equivalent to the annual maximum wage base for Social Security deductions) to new employees (Tier 2) of the TPAF and the PERS. This provision was extended by Chapter 1, P.L. 2010, effective May 21, 2010, to new employees (Tier 2) of the PFRS and the SPRS. Based on Chapter 89, P.L.2008, effective November 2, 2008, new employees with a base salary between $5,000 and the current minimum TPAF and PERS Tier 3 salary are eligible for participation in the DCRP. Also, based on Chapter 1, P.L. 2010, effective May 21, 2010, new employees who would otherwise be eligible to participate in TPAF and PERS (Tier 4 and Tier 5) and do not work the minimum required hours but earn a base salary of at least $5,000 are eligible for participation in the DCRP. Contribution Requirements – ABPLTD The State of New Jersey makes an annual contribution to the ABPLTD, as required, toward the cost of long term disability benefits which extend beyond the calendar year following the year in which the disability benefits commence for those with a benefit commencement date on or after October 1, 1986. The State made a contribution of $3.0 million for fiscal year 2013.

70 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(5) CONTRIBUTIONS, Continued

Contribution Requirements – ABP Members contribute a mandatory 5% of base or contractual salary that is tax deferred under the Section 414(h) provisions of the IRC. Members are also permitted to make voluntary federal tax-deferred contributions under IRC Section 403(b). The State of New Jersey pays the employer contribution for all State and county employees participating in the plan. The employer contribution is based on 8% of base or contractual salary. The State of New Jersey is also responsible for the cost of noncontributory life insurance coverage and disability coverage for its plan members. The State made a contribution of $158.1 million, excluding NCGI of $17.6 million and short term disability of $3.0 million, for fiscal year 2013. Contribution Requirements – PAF The contribution requirements were established by N.J.S.A. 43:3B 4. The State of New Jersey is required to make an annual appropriation payment to fund the cost of living increases payable to retirees and beneficiaries of retired members in the CPFPF, POPF and CPF. Funding is on a pay-as-you-go basis. The State made a contribution of $1.1 million for fiscal year 2013. Contribution Requirements – DEP – State and Local Contributions to pay for the premiums of participating employees in the Dental Expense Program Fund are collected from the State of New Jersey, local governmental and educational employers, active employees, and former and retired members who have elected to participate under the rules of COBRA. The cost of the premiums is shared by the State of New Jersey and active State employees. Former and retired employees who have chosen to participate under the rules of COBRA pay the full cost of the premium. The employers are billed for the full cost of coverage. The State of New Jersey provides contributions through State appropriations. These appropriations are distributed to the DEP on a biweekly and monthly basis. The active member share of the cost of premiums, which is included in the billing to the employers, is paid to the State on a biweekly and monthly basis. Members participating under COBRA remit their payments on a monthly basis. Retirees pay 100% of the overall dental cost. The State made a contribution of $33.6 million, excluding administrative and other revenue of $24.5 thousand, for fiscal year 2013. The local contribution was $3.5 million for fiscal year 2013.

New Jersey Division of Pensions and Benefits 71 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(6) VESTING AND BENEFITS Vesting and Benefit Provisions - JRS The vesting and benefit provisions are set by N.J.S.A. 43:6A. The JRS provides retirement benefits as well as death and disability benefits. Retirement benefits for age and years of service are as follows:

Benefit as a Years of Percentage of Age Judicial Service Final Salary 70 at least 10 75% 65-69 at least 15 75% 60-64 at least 20 75%

Benefit as a Years of Years of Public and Percentage of Age Judicial Service Judicial Service Final Salary 65 5 15 50% 60 5 20 50%

Retirement is mandatory at age 70. Early retirement benefits are available with 5 years of judicial service plus 25 years in the aggregate of public service with the benefit determined to be 2% of final salary plus 1% of final salary for each year in excess of 25 years. An actuarial reduction will be made if retirement is before age 60. Retirement benefits are also available at age 60 with five years of judicial service plus 15 years in the aggregate of public service, or at age 60 while serving as a judge with the benefit determined to be 2% of final salary, as defined, for each year of public service up to 25 years plus 1% of final salary for each year in excess of 25 years. Deferred retirement benefits are also available. Eligible retirees receiving monthly benefits are entitled to cost-of-living adjustment (COLA) increases equal to 60% of the change in the average consumer price index for the calendar year in which the pensioner retired, as compared to the average consumer price index for a twelve month period ending with each August 31st immediately preceding the year in which the adjustment becomes payable. The regular retirement allowance is multiplied by the 60% factor as developed and results in the dollar amount of the adjustment payable. Retired members become eligible for pension adjustment benefits after 24 months of retirement. Pursuant to the provisions of Chapter 78, P.L.2011, COLA increases are suspended for all current and future retirees of all retirement systems. The law does not reduce any COLA increases that have already been added to retiree benefits. Vesting and Benefit Provisions – CPFPF The vesting and benefit provisions were set by N.J.S.A. 43:16. There are no active members in the CPFPF.

72 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(6) VESTING AND BENEFITS, Continued Vesting and Benefit Provisions – PFRS The vesting and benefit provisions are set by N.J.S.A. 43:16A. The PFRS provides retirement as well as death and disability benefits. All benefits vest after ten years of service, except disability benefits which vest after four years of service. Retirement benefits for age and service are available at age 55 and are generally determined to be 2% of final compensation for each year of creditable service, as defined, up to 30 years plus 1% for each year of service in excess of 30 years. Final compensation equals the compensation for the final year of service prior to retirement. Members may seek special retirement after achieving 25 years of creditable service or they may elect deferred retirement after achieving ten years of service, in which case benefits would begin at age 55 equal to 2% of final compensation for each year of service. The annual benefit under special retirement is 65% of the member’s final compensation plus 1% for each year of creditable service over 25 years but not to exceed 30 years. The maximum allowance is therefore 70% of final compensation. Pursuant to the provisions of Chapter 78, P.L. 2011, the annual benefit under special retirement for members enrolled after June 28, 2011 (Tier 3 members), is 60% of the member’s final compensation plus 1% for each year of creditable service over 25 years but not to exceed 30 years. The maximum allowance is therefore 65% of final compensation. Widow/widowers of members retired since December 18, 1967 receive 50% of the retiree’s final compensation. Members are always fully vested for their own contributions. In the case of death before retirement, members’ beneficiaries are entitled to full payment of members’ contributions providing no survivor death benefits are payable. Eligible retirees receiving monthly benefits are entitled to COLA increases equal to 60% of the change in the average consumer price index for the calendar year in which the pensioner retired, as compared to the average consumer price index for a twelve-month period ending with each August 31st immediately preceding the year in which the adjustment becomes payable. The regular retirement allowance is multiplied by the 60% factor as developed and results in the dollar amount of the adjustment payable. Retired members become eligible for pension adjustment benefits after 24 months of retirement. The COLA increases are funded by the retirement system and are included in the annual actuarial calculations of the required state and state-related employer contributions. Pursuant to the provisions of Chapter 78, P.L.2011, COLA increases are suspended for all current and future retirees of all retirement systems. The law does not reduce any COLA increases that have already been added to retiree benefits. Pursuant to Chapter 1, P.L. 2010, for new members of PFRS hired after May 21, 2010 (Tier 2 members), this law capped the maximum compensation that can be used to calculate a pension from these plans at the annual wage contribution base for Social Security, and required the pension to be calculated using a three year average annual compensation instead of the last year’s salary. Vesting and Benefit Provisions – POPF The vesting and benefit provisions were set by N.J.S.A. 43:7. There are no active members in the POPF. Vesting and Benefit Provisions – PERS The vesting and benefit provisions are set by N.J.S.A. 43:15A. The PERS provides retirement, death and disability benefits. All benefits vest after eight (legislators) to ten years of service, except for medical benefits, which vest after 25 years of service or under the disability provisions of the PERS. For Tier 1 members, retirement benefits for age and service are available at age 60 and are generally determined to be 1/55 of final average salary for each year of service credit, as defined. Final average salary

New Jersey Division of Pensions and Benefits 73 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(6) VESTING AND BENEFITS, Continued

equals the average salary for the final three years of service prior to retirement (or highest three fiscal years’ compensation if other than the final three years). Members may seek early retirement after achieving 25 years service credit, as defined, or they may elect deferred retirement after achieving eight to ten years of service credit, in which case benefits would begin the first day of the month after the member attains normal retirement age. Members are always fully vested for their own contributions and, after three years of service credit, become vested for earnings on their contributions at 2% per annum. In the case of death before retirement, members’ beneficiaries are entitled to full interest credited to the members’ accounts. Eligible retirees receiving monthly benefits are entitled to COLA increases equal to 60% of the change in the average consumer price index for the calendar year in which the pensioner retired, as compared to the average consumer price index for a twelve-month period ending with each August 31st immediately preceding the year in which the adjustment becomes payable. The regular retirement allowance is multiplied by the 60% factor as developed and results in the dollar amount of the adjustment payable. Retired members become eligible for pension adjustment benefits after 24 months of retirement. The COLA increases are funded by the retirement system and are included in the annual actuarial calculations of the required state and state-related employer contributions. Pursuant to the provisions of Chapter 78, P.L.2011, COLA increases are suspended for all current and future retirees of all retirement systems. The law does not reduce any COLA increases that have already been added to retiree benefits. Chapter 103, P.L.2007 amended the early retirement reduction formula for members hired on or after July 1, 2007 and prior to November 2, 2008 (Tier 2 members) and retiring with 25 years of service to be reduced by 1% for every year between age 55 and 60, plus 3% for every year under age 55. Also, this law provided that the amount of compensation for Tier 2 members used for employer and member contributions and benefits under the PERS cannot exceed the annual maximum wage contribution base for Social Security, pursuant to the Federal Insurance Contributions Act. Chapter 89, P.L.2008 increased the PERS eligibility age for unreduced benefits from age 60 to age 62 for members hired on or after November 2, 2008 and on or before May 21, 2010 (Tier 3 members). It also increased the minimum annual compensation required for membership eligibility for new Tier 3 members from $1,500 to $7,500 with annual adjustments ($7,900 in 2012 and $8,000 in 2013) in addition to amend- ing the early retirement reduction formula for Tier 3 members retiring with 25 years of service to 1% for every year between age 55 and 62, plus 3% for every year under age 55. Chapter 1, P.L.2010, effective May 21, 2010, changed the membership eligibility criteria for new members of PERS hired after May 21, 2010 (Tier 4 and Tier 5 members) from the amount of annual compensation to the number of hours worked weekly. Also, it returned the benefit multiplier for these members of PERS to 1/60 from 1/55, and it provided that the retirement allowance for these members be calculated using the average annual compensation for the last five years of service instead of the last three years of service. Tier 4 and Tier 5 members of PERS no longer receive pension service credit from more than one employer. Pension service credit is earned for the highest paid position only. This law also closed the Prosecutors Part of the PERS to new members. Chapter 3, P.L.2010, effective May 21, 2010, replaced the accidental and ordinary disability retirement for Tier 4 and Tier 5 members of the PERS with disability insurance coverage similar to that provided by the State to individuals enrolled in the State’s Defined Contribution Retirement Program.

74 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(6) VESTING AND BENEFITS, Continued

Chapter 78, P.L.2011, provides that new members of PERS hired on or after June 28, 2011 (Tier 5 members) need 30 years of creditable service and age 65 for receipt of the early retirement benefit without a reduction of 1/4 of 1% for each month that the member is under age 65. Tier 5 members are eligible for a service retirement benefit at age 65. Vesting and Benefit Provisions – SPRS The vesting and benefit provisions are set by N.J.S.A. 53:5A. The SPRS provides retirement as well as death and disability benefits. All benefits vest after ten years of service, as defined. Retirement benefits are available after 20 years of service as defined at any age with mandatory retirement at age 55. The retirement benefit is based upon final compensation, which for Tier 1 members is defined as salary plus maintenance allowance during the last 12 months prior to retirement, and is a life annuity equal to the greater of the following: (a) 50% of final compensation; (b) for members retiring due to mandatory retirement, 50% of final compensation, plus 3% for each year of service in excess of 20 years up to 25 years to a maximum of 65% of final compensation; or (c) for members retiring with 25 or more years of service, 65% of final compensation, plus 1% for each year of service in excess of 25 years, to a maximum of 70% of final compensation. Members may elect deferred retirement after ten years of service in which case benefits in the form of life annuity would begin at age 55 equal to 2% of final compensation for each year of service up to 25 years with 1% for every year over 25 years. Members are always fully vested for their own contributions. Eligible retirees receiving monthly benefits are entitled to COLA increases equal to 60% of the change in the average consumer price index for the calendar year in which the pensioner retired, as compared to the average consumer price index for a twelve-month period ending with each August 31st immediately preceding the year in which the adjustment becomes payable. The regular retirement allowance is multiplied by the 60% factor as developed and results in the dollar amount of the adjustment payable. Retired members become eligible for pension adjustment benefits after 24 months of retirement. Pursuant to the provisions of Chapter 78, P.L. 2011, COLA increases are suspended for all current and future retirees of all retirement systems. The law does not reduce any COLA increases that have already been added to retiree benefits. Pursuant to Chapter 1, P.L. 2010 for new members of SPRS hired after May 21, 2010 (Tier 2 members), this law capped the maximum compensation that can be used to calculate a pension from these plans at the annual wage contribution base for Social Security, and requires the pension to be calculated using a three year average annual compensation instead of the last year’s salary. Vesting and Benefit Provisions – TPAF The vesting and benefit provisions are set by N.J.S.A. 18A:66. The TPAF provides retirement, death and disability benefits. All benefits vest after ten years of service, except for medical benefits, which vest after 25 years of service or under the disability provisions of the TPAF. For Tier 1 members, retirement benefits for age and service are available at age 60 and are generally determined to be 1/55 of final average salary for each year of service credit, as defined. Final average salary equals the average salary for the final three years of service prior to retirement (or highest three fiscal years’ compensation if other than the final three years). Members may seek early retirement after achieving 25 years service credit, as defined, or they may elect deferred retirement after achieving ten years of service credit, in which case benefits would begin the first day of the month after the member attains normal retirement age.

New Jersey Division of Pensions and Benefits 75 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(6) VESTING AND BENEFITS, Continued Members are always fully vested for their own contributions and, after three years of service credit, become vested for 2% of related interest earned on the contributions. In the case of death before retirement, members’ beneficiaries are entitled to full interest credited to the members’ accounts. Eligible retirees receiving monthly benefits are entitled to COLA increases equal to 60% of the change in the average consumer price index for the calendar year in which the pensioner retired, as compared to the average consumer price index for a twelve-month period ending with each August 31st immediately preceding the year in which the adjustment becomes payable. The regular retirement allowance is multiplied by the 60% factor as developed and results in a dollar amount of the adjustment payable. Retired members become eligible for pension adjustment benefits after 24 months of retirement. Pursuant to the provisions of Chapter 78, P.L.2011, COLA increases are suspended for all current and future retirees of all retirement systems. The law does not reduce any COLA increases that have already been added to retiree benefits. Chapter 103, P.L.2007 amended the early retirement reduction formula for members hired on or after July 1, 2007 and retiring with 25 years of service to be reduced by 1% for every year between age 55 and 60, plus 3% for every year under age 55. Also, this law provided that for members hired on or after July 1, 2007, the amount of compensation used for employer and member contributions and benefits under the TPAF cannot exceed the annual maximum wage contribution base for Social Security, pursuant to the Federal Insurance Contributions Act. Chapter 89, P.L. 2008 increased the TPAF eligibility age for unreduced benefits from age 60 to age 62 for members hired on or after November 2, 2008 and on or before May 21, 2010 (Tier 3 members). It also increased the minimum annual compensation required for membership eligibility for new Tier 3 members from $1,500 to $7,500 with annual adjustments ($7,900 in 2012 and $8,000 in 2013) in addition to amend- ing the early retirement reduction formula for Tier 3 members retiring with 25 years of service to 1% for every year between age 55 and 62, plus 3% for every year under age 55. Chapter 1, P.L.2010, effective May 21, 2010, changed the membership eligibility criteria for new members of TPAF from the amount of annual compensation to the number of hours worked weekly. Also, it returned the benefit multiplier for new members of TPAF to 1/60 from 1/55, and it provided that new members of TPAF have the retirement allowance calculated using the average annual compensation for the last five years of service instead of the last three years of service. New members of TPAF no longer receive pension service credit from more than one employer. Pension service credit is earned for the highest paid position only. Chapter 3, P.L.2010, effective May 21, 2010, replaced the accidental and ordinary disability retirement for new members of the TPAF with disability insurance coverage similar to that provided by the State to individuals enrolled in the State’s Defined Contribution Retirement Program. Chapter 78, P.L. 2011, provides that new members of TPAF hired on or after June 28, 2011 (Tier 5 members) need 30 years of creditable service and age 65 for receipt of the early retirement benefit without a reduction of 1/4 of 1% for each month that the member is under age 65. Tier 5 members are eligible for a service retirement benefit at age 65. Vesting and Benefit Provisions – SACT Upon retirement, a participant receives a life annuity benefit or may elect to receive a benefit paid as a single cash payment or various forms of monthly annuity payments with a beneficiary provision based on the value of the participant’s account in the month of retirement. Upon the death of a participant, the designated beneficiary may elect to receive a lump sum equal to the account value or an annuity under any of the settlement options which a retiree could elect under the Trust. Upon termination of employment and with-

76 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(6) VESTING AND BENEFITS, Continued

drawal from the basic retirement systems, a participant must also withdraw his account under the Trust as a lump-sum settlement. Benefit Provisions – CPF Benefits are payable under various State of New Jersey acts in an amount equal to one half of the compensation received by the participant for his/her service. In the case of Disabled Veterans’ Pensions and Surviving Spouses, the amount is $62.50 per month. Vesting and Benefit Provisions – NJSEDCP Assets in the Plan are held in trust for the exclusive benefit of Plan members and their beneficiaries in accordance with GASB Statement No. 32, Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans. Plan members are fully vested for the current valuation of their account from the date of enrollment in the Plan. Benefits are payable upon separation from service with the State of New Jersey. Vesting and Benefit Provisions – DCRP Eligible members are provided with a defined contribution retirement plan intended to qualify for favorable Federal income tax treatment under IRC Section 401(a), a noncontributory group life insurance plan and a noncontributory group disability benefit plan. A participant’s interest in that portion of his or her defined contribution retirement plan account attributable to employee contributions shall immediately become and shall at all times remain fully vested and nonforfeitable. A participant’s interest in that portion of his or her defined contribution retirement plan account attributable to employer contributions shall be vested and nonforfeitable on the date the participant commences the second year of employment or upon his or her attainment, while employed by an employer, of age 65, whichever occurs first. Benefit Provisions – ABPLTD Members who are totally disabled due to an occupational or nonoccupational condition are eligible to receive a regular monthly benefit equal to 60% of the base salary earned over the twelve month period preceding the onset of the disability. The long-term disability benefits continue until such time as the member retires or attains the age of 70, whichever comes first. Vesting and Benefit Provisions – SHBP – State (including PDP – State) The Program provides medical coverage to qualified active and retired participants. Under Chapter 136, P.L. 1977, the State of New Jersey pays for the health insurance coverage of all enrolled retired State employees (regardless of age) whose pensions are based upon 25 years or more of credited service or a disability retirement regardless of years of service. Retirees who are not eligible for state paid health coverage at retirement can continue in the program by paying the cost of the insurance for themselves and their covered dependents. The PDP was established in December 1974, under N.J.S.A. 52:14 17.29 to provide coverage to employees and their eligible dependents for drugs which under federal or State law may be dispensed only upon a prescription written by a physician. State employees are eligible for PDP coverage after 60 days of employment. Vesting and Benefit Provisions – SHBP – Local (including PDP – Local) The Program provides medical coverage to qualified local active and retired participants. Partially funded benefits are also provided to local police officers and firefighters who retire with 25 years of service (or on disability) from an employer who does not provide coverage under the provisions of Chapter 330, P.L.1997. Also, local employees are eligible for the PDP coverage after 60 days of employment.

New Jersey Division of Pensions and Benefits 77 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(6) VESTING AND BENEFITS, Continued Vesting and Benefit Provisions – SHBP – Education (including PDP – Education) The program provides medical coverage to qualified local education active and retired participants. Members of the TPAF who retire from a board of education or county college with 25 years of service or on a disability retirement receive state paid post retirement medical coverage. Under the provisions of Chapter 126, P.L.1992, the program also provides state paid coverage to members of the PERS and ABP who retire from a board of education or county college with 25 years of service or on a disability retirement if the member’s employer does not provide this coverage. Certain local participating employers also provide post retirement medical coverage to their employees. Retirees who are not eligible for state paid health coverage at retirement can continue in the program if their employer participates in this program or if they are participating in the health benefits plan of their former employer and are enrolled in Medicare Parts A and B by paying the cost of the insurance for themselves and their covered dependents. Also, education employees are eligible for the PDP coverage after 60 days of employment. Vesting and Benefit Provisions – ABP ABP provides retirement benefits, disability benefits, and group life insurance benefits to eligible participants. Retirement benefits are payable upon separation from service with no age or service requirements. However, distributions under age 55 are limited to employee contributions and accumulations. The remaining employer’s contributions and earnings are available for distribution upon attaining age 55. New ABP participants are vested after one year of service. Participants are immediately vested if the participant has an existing retirement account containing employer and employee contributions based on employment in public education, or is an active or vested member of a federal or state retirement system. Benefit Provisions – PAF The Pension Adjustment Fund covers eligible retirees and survivors of CPFPF, POPF and CPF. Eligible retirees and/or survivors are those who have been retired at least 24 months. Those eligible for benefits are entitled to COLA increases equal to 60% of the change in the average consumer price index for the calendar year in which the pensioner retired, as compared to the average consumer price index for a twelve month period ending with each August 31st immediately preceding the year in which the adjustment becomes payable. The regular retirement allowance is multiplied by the 60% factor as developed and results in a dollar amount of the adjustment payable. Retired members become eligible for pension adjustment benefits after 24 months of retirement. Chapter 4, P.L. 2001 provided increased benefits to certain members of the Consolidated Police and Firemen’s Pension Fund who retired prior to December 29, 1989 with at least 25 years of creditable service. The benefit increase is effective November 1, 2001. The maximum amount of the increase was 5% of the retiree’s final compensation. For those with 30 or more years of service, the total pension benefit would increase from 65% to 70% of final compensation. As a result of this legislation, cost-of-living benefits payable to eligible retirees also increased. The State, not the local municipalities, is responsible for these costs. Pursuant to the provisions of Chapter 78, P.L. 2011, COLA increases are suspended for all current and future retirees of all retirement systems. The law does not reduce any COLA increases that have already been added to retiree benefits. Benefit Provisions – DEP – State and Local The Program provides coverage to employees and their eligible dependents for dental services performed by a qualified dentist. Employees are eligible for coverage after 60 days of employment.

78 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(7) FUNDS The Funds maintain the following legally required funds as follows (amounts indicated in parenthesis represent net position held in trust for the respective fund as indicated): Members’ Annuity Savings Fund and Accumulative Interest Fund – JRS ($46,650,937); TPAF ($10,145,584,757); PERS ($12,177,319,873); PFRS ($3,319,977,601); SPRS ($180,019,772) The Members’ Annuity Savings Fund (ASF) is credited with all contributions made by active members of the Funds. Interest earned on member contributions is credited to the Accumulative Interest Fund, which is applied to TPAF, PERS, and JRS. Member withdrawals are paid out of these Funds. Contingent Reserve Fund – JRS ($-27,351,176); TPAF ($-17,265,872,607); PERS ($-9,998,792,588); SPRS ($783,302,755) The Contingent Reserve Fund is credited with the contributions of contributing employers. Interest earnings, after crediting the Accumulative Interest Fund and Retirement Reserve Fund, as required, are credited to this account. Additionally, payments for administrative and miscellaneous expenses are made from this Fund. Retirement Reserve Fund – JRS ($206,531,056); TPAF ($33,042,421,138); PERS ($25,032,882,018); PFRS ($20,044,311,736); SPRS ($825,303,195) The Retirement Reserve Fund is the account from which retirement benefits including COLA adjustments are paid. Upon retirement of a member, accumulated contributions together with accumulated interest are transferred to the Retirement Reserve Fund from the Members’ ASF and Accumulative Interest Fund. Any additional reserves needed to fund the balance of the retirement benefit are transferred from the Contingent Reserve Fund or Pension Accumulation Fund. Annually, interest as determined by the State Treasurer (7.95% for fiscal year 2013 and 8.25% for fiscal year 2012) is credited to the Retirement Reserve Fund. Retirement Reserve Fund – POPF ($8,171,919) The Retirement Reserve Fund is credited with State of New Jersey contributions and investment income. In addition, all benefits are paid from this account. Contributory Group Insurance Premium Fund – TPAF ($137,239,453); PERS ($384,313,550) The Contributory Group Insurance Premium Fund represents the accumulation of member group life insurance contributions in excess of premiums disbursed to the insurance carrier since the inception of the contributory death benefit program plus reserves held by the insurance carriers. Members are required by statute to participate in the contributory group life insurance plan in the first year of membership and may cancel the contributory coverage thereafter. The current contribution rate for active members is 0.4 of 1% of salary for TPAF and 0.5 of 1% of salary for PERS, as defined. Non-Contributory Group Insurance Premium Fund – PERS – Local ($44,579,485); PFRS – Local ($7,779,399) The Non-Contributory Group Insurance Premium Fund represents the accumulation of employer group life insurance contributions in excess of premiums disbursed to the insurance carrier since the inception of the noncontributory death benefit program plus reserves held by the insurance carrier. Members are eligible by statute for the noncontributory group life insurance plan in the first year of membership. TPAF, PERS – State, and PFRS – State show a zero balance as these premium expenses are funded on a monthly basis. Pension Accumulation Fund – PFRS ($-867,131,191) The Pension Accumulation Fund is credited with the contributions of the State of New Jersey and other employers. Interest earnings, after crediting the Retirement Reserve Fund, as required, are credited to this account.

New Jersey Division of Pensions and Benefits 79 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(7) FUNDS, Continued Additionally, payments for administrative and miscellaneous expenses are made from this Fund. Pension Reserve Fund – CPFPF ($4,353,816) The Pension Reserve Fund is credited with State of New Jersey contributions and investment income. Reserve Fund – Alternate Benefit – Long Term Disability ($1,646,696) The fund balance of the ABPLTD is available for future payments to participants. Benefit Enhancement Reserve Fund – PERS – Local ($279,733,836) The Benefit Enhancement Reserve Fund is a special reserve fund from which the required normal contributions to provide benefit increases under Chapter 353, P.L. 2001 and Chapter 133, P.L. 2001 will be charged. The fund was established in 2002 and credited with excess assets equivalent to member contributions for fiscal years 2000 and 2001 by transferring reserves in the Contingent Reserve Fund to the Benefit Enhancement Fund. Additional transfers will be made, as required, to maintain a fund balance equal to the present value of expected additional normal contributions due to the increased benefits. Reserve Fund – SHBP – State (Including PDP – State) ($-153,167,314) The State uses this fund to cover claims payments. Reserve Fund – SHBP – Local (Including PDP – Local) ($225,182,796) The net position of the SHBP – Local are available to pay claims of future periods. These reserves are maintained by the fund to stabilize rates and to meet unexpected increase in claims. Reserve Fund – SHBP – Education (Including PDP – Education) ($223,551,953) The net position of the SHBP – Education are available to pay claims of future periods. These reserves are maintained by the fund to stabilize rates and to meet unexpected increase in claims.

80 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Notes to Financial Statements, Continued June 30, 2013

(7) FUNDS, Continued

Various reserve fund net position balances as of June 30, 2013 as described previously are as follows:

Pension Trust Health Benefit Funds Program Funds Members’ Annuity Savings Fund and Accumulative Interest Fund $25,869,552,940 — Contingent Reserve Fund (26,508,713,616) — Retirement Reserve Fund 79,159,621,062 — Contributory Group Insurance Premium Fund 521,553,003 — Non-Contributory Group Insurance Premium Fund 52,358,884 — Pension Accumulation Fund (867,131,191) — Pension Reserve Fund 4,353,816 — Reserve Fund 1,646,696 295,567,435 Benefit Enhancement Reserve Fund 279,733,836 — Variable Accumulation Reserve Accounts (SACT/DCP/DCRP) 3,090,525,190 — Variable Benefits Reserve Account (SACT) 29,599,453 — Total $81,633,100,072 295,567,435

(8) CONTINGENCIES The Division is a party to various legal actions arising in the ordinary course of its operations. While it is not feasible to predict the ultimate outcome of these actions, it is the opinion of management that the resolution of these matters will not have a material adverse effect on the Division’s financial statements.

New Jersey Division of Pensions and Benefits 81 Schedule 1

STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Required Supplementary Information Schedule of Funding Progress (Unaudited — See accompanying independent auditor’s report)

UNFUNDED (OVERFUNDED) ACTUARIAL UNFUNDED ACCRUED (OVERFUNDED) LIABILITY AS A ACTUARIAL ACTUARIAL ACTUARIAL PERCENTAGE ACTUARIAL VALUE OF ACCRUED ACCRUED FUNDED COVERED OF COVERED VALUATION ASSETS LIABILITY LIABILITY RATIO PAYROLL PAYROLL DATE (a) (b) (b - a) (a / b) (c) ((b - a) / c) JUDICIAL RETIREMENT SYSTEM (JRS) July 1, 2007 $ 379,364,939 524,970,330 145,605,391 72.3% $63,144,685 230.6% July 1, 2008 380,964,713 553,284,647 172,319,934 68.9 67,159,516 256.6 July 1, 2009 354,399,646 594,043,375 239,643,729 59.7 70,133,372 341.7 July 1, 2010 329,030,387 554,540,403 225,510,016 59.3 71,746,413 314.3 July 1, 2011 305,245,844 585,700,787 280,454,943 52.1 67,437,125 415.9 July 1, 2012 278,548,470 605,180,634 326,632,164 46.0 67,497,660 483.9 CONSOLIDATED POLICE AND FIREMEN’S PENSION FUND (CPFPF) July 1, 2007 $ 19,336,247 21,090,186 1,753,939 91.7% N/A N/A July 1, 2008 15,705,984 17,319,488 1,613,504 90.7 N/A N/A July 1, 2009 13,515,949 14,024,132 508,183 96.4 N/A N/A July 1, 2010 10,632,228 11,824,904 1,192,676 89.9 N/A N/A July 1, 2011 8,126,894 9,179,981 1,053,087 88.5 N/A N/A July 1, 2012 6,282,439 8,026,421 1,743,982 78.3 N/A N/A POLICE AND FIREMEN’S RETIREMENT SYSTEM (PFRS) State July 1, 2007 $ 2,215,697,407 3,426,631,813 1,210,934,406 64.7% $527,556,519 229.5% July 1, 2008 2,316,017,361 3,749,118,910 1,433,101,549 61.8 527,495,741 271.7 July 1, 2009 2,254,766,935 3,993,259,480 1,738,492,545 56.5 525,862,047 330.6 July 1, 2010 2,190,654,958 3,672,361,258 1,481,706,300 59.7 530,747,536 279.2 July 1, 2011 2,143,492,414 3,926,525,679 1,783,033,265 54.6 526,058,270 338.9 July 1, 2012 2,074,049,503 4,026,954,882 1,952,905,379 51.5 517,324,007 377.5 Local July 1, 2007 $19,500,229,156 24,562,195,443 5,061,966,287 79.4% $2,932,283,180 172.6% July 1, 2008 20,437,541,909 26,871,106,532 6,433,564,623 76.1 3,068,758,436 209.6 July 1, 2009 20,724,453,343 28,448,841,765 7,724,388,422 72.8 3,147,812,476 245.4 July 1, 2010 20,367,865,987 25,601,998,126 5,234,132,139 79.6 3,189,786,833 164.1 July 1, 2011 21,027,839,958 26,978,632,188 5,950,792,230 77.9 3,123,358,027 190.5 July 1, 2012 21,500,537,273 27,705,168,437 6,204,631,164 77.6 3,138,894,566 197.7 PRISON OFFICERS’ PENSION FUND (POPF) July 1, 2007 13,499,361 7,378,386 (6,120,975) 183.0% N/A N/A July 1, 2008 12,890,441 6,789,017 (6,101,424) 189.9 N/A N/A July 1, 2009 11,986,919 6,136,441 (5,850,478) 195.3 N/A N/A July 1, 2010 11,018,367 5,635,024 (5,383,343) 195.5 N/A N/A July 1, 2011 9,997,650 5,096,792 (4,900,858) 196.2 N/A N/A July 1, 2012 9,044,236 5,395,505 (3,648,731) 167.6 N/A N/A

82 New Jersey Division of Pensions and Benefits Schedule 1, Continued

STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Required Supplementary Information Schedule of Funding Progress (Unaudited — See accompanying independent auditor’s report) UNFUNDED (OVERFUNDED) ACTUARIAL UNFUNDED ACCRUED (OVERFUNDED) LIABILITY AS A ACTUARIAL ACTUARIAL ACTUARIAL PERCENTAGE ACTUARIAL VALUE OF ACCRUED ACCRUED FUNDED COVERED OF COVERED VALUATION ASSETS LIABILITY LIABILITY RATIO PAYROLL PAYROLL DATE (a) (b) (b - a) (a / b) (c) ((b - a) / c) PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (PERS) State July 1, 2007 $11,024,255,608 16,028,875,601 5,004,619,993 68.8% $4,434,933,181 112.8% July 1, 2008 11,200,668,671 17,072,702,680 5,872,034,009 65.6 4,609,019,779 127.4 July 1, 2009 10,692,585,100 18,947,194,579 8,254,609,479 56.4 4,627,092,235 178.4 July 1, 2010 10,252,640,127 17,429,178,021 7,176,537,894 58.8 4,564,850,886 157.2 July 1, 2011 9,938,069,705 18,290,829,021 8,352,759,316 54.3 4,608,926,826 181.2 July 1, 2012 9,512,074,226 19,383,584,639 9,871,510,413 49.1 4,570,958,470 216.0 Local July 1, 2007 $17,690,520,507 21,764,214,593 4,073,694,086 81.3% $6,983,534,635 58.3% July 1, 2008 18,217,749,414 23,173,183,973 4,955,434,559 78.6 7,206,781,046 68.8 July 1, 2009 18,165,648,669 25,523,208,576 7,357,559,907 71.2 7,368,354,906 99.9 July 1, 2010 18,481,952,370 23,918,658,044 5,436,705,674 77.3 7,416,503,897 73.3 July 1, 2011 18,996,299,489 24,679,095,575 5,682,796,086 77.0 7,000,115,900 81.2 July 1, 2012 19,374,461,309 26,009,038,341 6,634,577,032 74.5 6,862,133,165 96.7 STATE POLICE RETIREMENT SYSTEM (SPRS) July 1, 2007 $ 2,066,754,160 2,485,649,230 418,895,070 83.1% $275,301,995 152.2% July 1, 2008 2,127,263,509 2,609,164,869 481,901,360 81.5 281,087,566 171.4 July 1, 2009 2,063,962,877 2,825,455,568 761,492,691 73.0 287,267,502 265.1 July 1, 2010 2,019,350,048 2,497,094,137 477,744,089 80.9 289,980,657 164.8 July 1, 2011 2,002,813,881 2,581,950,846 579,136,965 77.6 275,219,752 210.4 July 1, 2012 1,969,806,447 2,767,768,813 797,962,366 71.2 283,219,927 281.7 TEACHERS’ PENSION AND ANNUITY FUND (TPAF) July 1, 2007 $36,714,578,745 49,161,247,363 12,446,668,618 74.7% $9,077,628,813 137.1% July 1, 2008 36,664,627,629 51,754,814,521 15,090,186,892 70.8 9,419,083,203 160.2 July 1, 2009 34,838,211,259 54,576,061,024 19,737,849,765 63.8 9,747,020,060 202.5 July 1, 2010 33,265,326,627 49,543,347,849 16,278,021,222 67.1 10,025,401,658 162.4 July 1, 2011 32,289,888,420 51,406,540,290 19,116,651,870 62.8 9,682,318,739 197.4 July 1, 2012 31,214,185,683 52,637,346,396 21,423,160,713 59.3 9,779,212,916 219.1

New Jersey Division of Pensions and Benefits 83 Schedule 1, continued

STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Required Supplementary Information Schedule of Funding Progress (Unaudited — See accompanying independent auditor’s report)

* Required disclosure at adoption of standard. Covered payroll not available for the initial analysis.

84 New Jersey Division of Pensions and Benefits Schedule 1, continued

STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Required Supplementary Information Schedule of Funding Progress — Additional Actuarial Information (Unaudited — See accompanying independent auditor’s report)

Significant actuarial methods and assumptions used in the most recent 2012 actuarial valuations include the following:

JRS CPFPF Actuarial cost method Projected unit credit Projected unit credit Asset valuation method 5 year average of market value 5 year average of market value Amortization method Level dollar, open Level dollar, closed Remaining amortization period 30 years 1 year Actuarial assumptions: Interest rate 7.90% 2.00% Salary range 2.50% N/A Cost-of-living adjustments —% N/A Valuation date July 1, 2012 July 1, 2012

PFRS POPF Actuarial cost method Projected unit credit Projected unit credit Asset valuation method 5 year average of market value Market value Amortization method Level dollar, open Level dollar, closed Remaining amortization period 30 years 1 year Actuarial assumptions: Interest rate 7.90% 5.00% Salary range 6.01% N/A Cost-of-living adjustments —% N/A Valuation date July 1, 2012 July 1, 2012

PERS SPRS

Actuarial cost method Projected unit credit Projected unit credit Asset valuation method 5 year average of market value 5 year average of market value Amortization method Level dollar, open Level dollar, open Remaining amortization period 30 years 30 years Actuarial assumptions: Interest rate 7.90% 7.90% Salary range 4.22% 3.45% Cost-of-living adjustments —% —% Valuation date July 1, 2012 July 1, 2012

TPAF Actuarial cost method Projected unit credit Asset valuation method 5 year average of market value Amortization method Level dollar, open Remaining amortization period 30 years Actuarial assumptions: Interest rate 7.90% Salary range 3.51% Cost-of-living adjustments —% Valuation date July 1, 2012

New Jersey Division of Pensions and Benefits 85 Schedule 1, continued

Significant actuarial methods and assumptions used in the most recent 2012 actuarial valuations include the following:

State Health Benefit Program Funds Actuarial cost method Projected unit credit Amortization method Level dollar, open Remaining amortization period 30 years Actuarial assumptions: Interest rate 4.50% (assuming no prefunding) Salary range N/A Cost-of-living adjustments N/A Valuation date July 1, 2012

For medical benefits, the healthcare cost trend rate assumption initially is at 8.5% and decreases to a 5.0% long-term trend rate for all medical benefits after 8 years, except for NJ Direct Post-65 whose rate assumption is 5.0% through 8 years. For perscription drug benefits, the initial healthcare cost assumption is 8.5%, decreasing to a 5.0% long-term trend rate after 8 years. For Medicare Part B reimbursement, the healthcare cost trend rate assumption is 5.0% throughout 8 years.

86 New Jersey Division of Pensions and Benefits Schedule 2

STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Required Supplementary Information Schedule of Employer Contributions (Unaudited — See accompanying independent auditor’s report)

YEAR ANNUAL ENDED REQUIRED EMPLOYER PERCENTAGE JUNE 30, CONTRIBUTION CONTRIBUTIONS(1) (4) CONTRIBUTED

JUDICIAL RETIREMENT SYSTEM 2008 $27,171,100(5) 12,913,890(5) 47.5% 2009 29,809,782 1,696,843(5) 5.7 2010 32,540,704 1,032,857(5) 3.2 2011 38,450,553 651,718 1.7 2012 42,475,660 5,969,713(5) 14.1 2013 45,415,467 12,544,372 27.6

CONSOLIDATED POLICE AND FIREMEN’S PENSION FUND 2008 $2,388,591 523,000 21.9% 2009 1,824,798 1,256,000 68.8 2010 1,678,690 —(5) — 2011 528,714 — — 2012 1,240,860 174,000 14.0 2013 1,095,632 896,883 81.9

POLICE AND FIREMEN’S RETIREMENT SYSTEM State 2008 $252,836,330 133,510,475(5) 52.8% 2009 275,205,347 20,014,342(5) 7.3 2010 343,091,276 7,326,383(5) 2.1 2011 377,153,530 7,629,519 2.0 2012 414,290,236 59,246,203(5) 14.9 2013 436,414,537 121,115,869 27.8 Local 2008 $708,019,933 647,288,920(6) 91.4 2009 773,029,316 696,476,702 90.1 2010 818,672,171 751,395,802 91.8 2011 960,271,326 882,095,029 91.9 2012 823,842,166 763,182,795 92.6 2013 842,998,186 781,173,711 92.7

PRISON OFFICERS’ PENSION FUND 2008 $ — — N/A 2009 — — N/A 2010 — — N/A 2011 — — N/A 2012 — — N/A 2013 — — N/A

New Jersey Division of Pensions and Benefits 87 Schedule 2, Continued

STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Required Supplementary Information Schedule of Employer Contributions (Unaudited — See accompanying independent auditor’s report)

YEAR ANNUAL ENDED REQUIRED EMPLOYER PERCENTAGE JUNE 30, CONTRIBUTION CONTRIBUTIONS(1)(4) CONTRIBUTED

PUBLIC EMPLOYEES’ RETIREMENT SYSTEM(2) State 2008 $557,237,789(5) 234,560,830(5) 42.1% 2009 622,123,112 49,408,878(5) 7.9 2010 684,036,322 27,910,317(5) 4.1 2011 871,820,619 31,079,384 3.6 2012 979,368,523 155,453,471(5) 15.9 2013 1,044,327,298 299,011,496 28.6 Local 2008 $588,326,347(6) 412,129,536(6) 70.1% 2009 663,668,287 578,581,071(6) 87.2 2010 738,439,441 612,372,679(6) 82.9 2011 952,570,462 800,936,802 84.1 2012 915,789,890 820,640,436 89.6 2013 867,031,711 784,691,262 90.5

STATE POLICE RETIREMENT SYSTEM 2008 $78,761,279(5) 36,443,502(5) 46.3% 2009 86,385,254 5,574,860(5) 6.5 2010 91,411,237 1,018,200(5) 1.1 2011 114,120,061 2,201,604 1.9 2012 98,869,662 13,545,607(5) 13.7 2013 99,876,582 27,581,686 27.6

TEACHERS’ PENSION AND ANNUITY FUND 2008 $1,550,503,835 695,275,811 44.8% 2009 1,601,478,508 95,863,972 6.0 2010 1,796,358,016 33,199,655(5) 1.8 2011 2,123,175,950 30,655,332 1.4 2012 2,269,823,968 317,927,358 14.0 2013 2,331,811,395 645,811,044 27.7

88 New Jersey Division of Pensions and Benefits Schedule 2, continued

STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Required Supplementary Information Schedule of Employer Contributions (Unaudited — See accompanying independent auditor’s report)

YEAR ENDED ANNUAL REQUIRED EMPLOYER PERCENTAGE JUNE 30, CONTRIBUTION (3) CONTRIBUTIONS CONTRIBUTED State Health Benefit Program Fund — State 2009 $1,651,900,000 424,341,000 25.7% 2010 1,676,000,000 476,394,000 28.4 2011 1,714,500,000 511,846,000 29.9 2012 1,802,200,000 505,481,000 28.0 2013 1,911,400,000 562,698,000 29.4 State Health Benefit Program Fund — Local 2009 $713,900,000 169,600,000 23.8% 2010 802,100,000 209,100,000 26.1 2011 976,900,000 251,100,000 25.7 2012 1,098,200,000 274,800,000 25.0 2013 1,200,700,000 322,300,000 26.8 State Health Benefit Program Fund — Education 2009 $2,969,700,000 762,859,000 25.7% 2010 2,992,500,000 850,606,000 28.4 2011 3,125,400,000 933,054,000 29.9 2012 3,115,800,000 873,919,000 28.0 2013 3,238,900,000 953,502,000 29.4 Notes to schedule: (1) In accordance with Chapter 115, P.L. 1997, available excess valuation assets were used to cover, in full or in part, the employer pension contributions. In fiscal year 2004, only PFRS – State and SPRS were able to utilize excess assets to cover, in full or in part, the employer contributions. In fiscal year 2005, only SPRS had excess assets available to utilize. In fiscal year 2006, no excess assets were available to be utilized toward State contributions. On the local side, excess assets were utilized to cover, in full or in part, the employer contributions for PERS through fiscal year 2004 and for PFRS through fiscal year 2003. (2) The local employer pension contributions to PERS from 1999 to 2004 represent the required contributions under the early retirement incentive programs. (3) The annual required contribution reflects a 30-year, 4.0% annual increasing amortization of the unfunded actuarial accrued liability. Based on expected benefit payments plus retiree drug subsidy for the applicable fiscal year end. (4) Differences between the amounts in the employer contribution column in this schedule and the amounts recorded in the financial statements and footnotes are attributed to timing differences between the 2012 actuarial valuations and the actual amounts received in fiscal year 2013. Employer contributions per this schedule represent anticipated contribution amounts determined at the time the actuarial valuations were prepared and finalized prior to the end of fiscal year 2013. The financial statements and footnotes reflect the actual amounts received in 2013. (5) For State, the fiscal year 2008 annual required contribution and the fiscal year 2007, 2008, 2009, 2010, and 2012 contributions have been reduced in accordance with the provisions of the Appropriation Act for fiscal year 2007, 2008, 2009, 2010, and 2012, respectively. (6) For local, the fiscal year 2008 annual required contribution and the fiscal year 2008 through 2010 contributions have been reduced in accordance with Chapter 108, P.L. 2003.

New Jersey Division of Pensions and Benefits 89 Schedule 3 Schedule STATE OF NEW JERSEY STATE Year ended June 30, 2013 ended June Year Schedule of Administrative Expenses Schedule of Administrative DIVISION OF PENSIONS AND BENEFITS (48,137) (27,878) (7,035) (20) (14) (457) (116) 170,000 86,343 PERS TPAF PFRS CPFPF POPF SPRS JRS NJSEDCP TOTAL (1) expenses $22,820,285 12,646,912 4,241,493 11,739 6,965 303,706 163,089 454,350 40,648,539

Portion of Consulting Portion (exams/hearings) 633,712 198,690 338,321 — — 4,244 — — 1,174,967 Total personnel servicesTotal 13,320,453 7,565,321 2,000,998 7,513 4,153 services professional Total 167,269 6,753,358 141,050 3,524,788 254,231 1,722,003 23,460,988 communicationTotal 3,103 2,056 100,067 712,760 15,794 405,283 miscellaneousTotal 184,219 administrative Total 131,419 12,305,388 2,033,714 301 1,151,520 387,073 207 9,307 822 1,583 549 3,800 27,063 1,264,660 4,662 12,100 3,617,503 (1) Medical reviews Medical reviews Elections 131,963 — 50,265 — — — — — 182,228 Employee benefits Employee 4,280,446 2,429,680 623,270Internal audit & legal 2,407 1,341 53,564 783,000 44,055Printing & office 443,347 79,424 149,027 7,514,187 317 242,247Other services & charges 212 137,164 366,648 10,420 46,106 207,602 1,795 69,783 98 — 148 65 1,388,118 3,224 99 4,879 555 840 — 12,000 429,459 661,999 Salaries & wages $9,040,007 5,135,641 1,377,728 5,106 2,812 113,705 96,995 174,807 15,946,801 Actuarial servicesData processing systemsInformation Other professional 386,006 2,102,342 2,764,472 1,183,421 168,379 1,558,829 383,948 320,507Travel 486,970TelephonePostage 1,184 941 681 811 592 455Office space 36,066 27,384Maintenance 22,410Equipment 150,205 5,786 4,469 3,860 5,804 314,504 14,219 85,012 176,243 1,431,304 — — 4,868,337 6,864 26,747 16,002 810,426 3,703,097 53,907 219,760 902,298 4,659 272,417 60 9,060 124,432 143 — 579 46 41,827 3,046 96 387 1,968 — 4,049 89 6 19,047 341 66 685 3,281 59 2,800 4 1,000 2,924 2 — 267,179 213 550,627 504 2,537,441 — 37 100 17,395 — 389,695 28,368 Personnel services: Personnel Professional services:Professional Communication: Miscellaneous: independent auditors’See accompanying report.

90 New Jersey Division of Pensions and Benefits Schedule 4 Schedule 5 Schedule STATE OF NEW JERSEY STATE OF NEW JERSEY STATE Year ended June 30, 2013 ended June Year Year ended June 30, 2013 ended June Year Schedule of Investment Expense Schedule of Investment Schedule of Expenses for Consultants Schedule of Expenses for DIVISION OF PENSIONS AND BENEFITS DIVISION OF PENSIONS AND BENEFITS PERS TPAF PFRS CPFPF POPF SPRS JRS TOTAL 633,712 198,690 338,321 — — 4,244 — 1,174,967 $1,151,681 367,069 709,093 681 455 26,654 3,860 2,259,493 PERS TPAF PFRS CPFPF POPF SPRS JRS NJSEDCP TOTAL Global support 131,963 — 50,265 — — — — 182,228 Buck ConsultantsBuck Milliman $386,006 — 320,507 — 168,379 681 455 — 22,410 — 3,860 — 733,919 — — 168,379 Board Elections: Actuarial: (exams/hearings) Medical reviews Investment expenseInvestment independent auditors’See accompanying report. $8,275,163 4,586,052 1,538,058 4,259 2,529 110,128 18,343 252,745 14,787,277 consultants for expenses Total independent auditors’See accompanying report.

New Jersey Division of Pensions and Benefits 91 Schedule 6 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Schedule of Fiduciary Net Position Fiduciary Funds June 30, 2013

PENSION STATE HEALTH TRUST BENEFIT PROGRAM FUNDS FUNDS TOTAL Assets: Cash and cash equivalents $ 5,224,206 1,655,438 6,879,644 Securities lending collateral 1,556,965,543 — 1,556,965,543 Investments, at fair value: Cash Management Fund 1,488,131,582 766,466,179 2,254,597,761 Common Pension Fund A 20,964,307,768 — 20,964,307,768 Common Pension Fund B 17,034,005,939 — 17,034,005,939 Common Pension Fund D 14,689,068,951 — 14,689,068,951 Common Pension Fund E 20,015,522,984 — 20,015,522,984 Common stocks 177,323,777 — 177,323,777 Mortgages 835,483,242 — 835,483,242 U.S. government obligations 399,045,275 — 399,045,275 Domestic equities 1,308,850,841 — 1,308,850,841 International equities 269,977,576 — 269,977,576 Other fixed income securities 909,186,823 — 909,186,823 Total investments 78,090,904,758 766,466,179 78,857,370,937 Receivables: Contributions: Members 202,583,660 2,195,872 204,779,532 Employers 3,108,925,553 138,922,625 3,247,848,178 Accrued interest and dividends 4,655,008 — 4,655,008 Members’ loans 1,057,464,740 — 1,057,464,740 Securities sold in transit 45,498,972 — 45,498,972 Other 17,886,211 2,908,487 20,794,698 Total receivables 4,437,014,144 144,026,984 4,581,041,128 Total assets $84,090,108,651 912,148,601 85,002,257,252

Liabilities: Accounts payable and accrued expenses 136,440,437 616,581,166 753,021,603 Retirement benefits payable 749,773,762 — 749,773,762 Cash Overdraft 639,342 — 639,342 Noncontributory group insurance premiums payable 14,113,195 — 14,113,195 Securities lending collateral and rebates payable 1,556,041,843 — 1,556,041,843 Total liabilities 2,457,008,579 616,581,166 3,073,589,745 Net position held in trust for pension and health benefits $81,633,100,072 295,567,435 81,928,667,507 See accompanying independent auditors’ report.

92 New Jersey Division of Pensions and Benefits Schedule 7 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Schedule of Changes in Fiduciary Net Position Fiduciary Funds Year ended June 30, 2013

PENSION STATE HEALTH TRUST BENEFIT PROGRAM FUNDS FUNDS TOTAL Additions: Contributions: Members $ 2,169,508,272 304,860,078 2,474,368,350 Employers 2,784,106,180 5,162,767,727 7,946,873,907 Other 3,389,743 — 3,389,743 Total contributions 4,957,004,195 5,467,627,805 10,424,632,000 Investment income: Net appreciation in fair value of investments 6,329,225,015 8,215 6,329,233,230 Interest 1,502,028,428 1,370,308 1,503,398,736 Dividends 479,409,930 — 479,409,930 8,310,663,373 1,378,523 8,312,041,896 Less: investment expense 14,787,277 — 14,787,277 Net investment income 8,295,876,096 1,378,523 8,297,254,619 Total additions 13,252,880,291 5,469,006,328 18,721,886,619

Deductions: Benefits 9,059,850,879 5,395,752,981 14,455,603,860 Refunds of contributions 172,134,350 — 172,134,350 Administrative and miscellaneous expenses 40,109,342 9,361,600 49,470,942 Total deductions 9,272,094,571 5,405,114,581 14,677,209,152 Net decrease 3,980,785,720 63,891,747 4,044,677,467 Net position held in trust for pension and health benefits: Beginning of year 77,652,314,352 231,675,688 77,883,990,040 End of year $ 81,633,100,072 295,567,435 81,928,667,507 See accompanying independent auditors’ report.

New Jersey Division of Pensions and Benefits 93 Schedule 8 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Combining Schedule of Balance Sheet Information Fiduciary Funds — Agency Funds June 30, 2013

ALTERNATE PENSION DENTAL TOTAL BENEFIT ADJUSTMENT EXPENSE AGENCY PROGRAM FUND FUND PROGRAM FUND FUNDS Assets: Cash and cash equivalents $ 362,785 516,472 693,643 1,572,900 Investments, at fair value: Cash Management Fund 1,344,122 2,085,549 29,488,297 32,917,968 Total investments 1,344,122 2,085,549 29,488,297 32,917,968 Receivables: State related employer contributions — 628,277 — 628,277 Other contributions 30,598,386 3,890 692,755 31,295,031

Total receivables 30,598,386 632,167 692,755 31,923,308 Total assets $ 32,305,293 3,234,188 30,874,695 66,414,176 Liabilities: Accounts payable and accrued expenses $ 32,149,700 — 30,874,695 63,024,395 Assets held for local contributing employers — 2,861,776 — 2,861,776 Pension adjustment payroll payable — 252,882 — 252,882 Due to State of New Jersey 155,593 95,036 — 250,629 Due to other funds — 24,494 — 24,494 Total liabilities $ 32,305,293 3,234,188 30,874,695 66,414,176 See accompanying independent auditors’ report.

94 New Jersey Division of Pensions and Benefits Schedule 9 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Combining Schedule of Changes in Fiduciary Net Position Information Fiduciary Funds — Agency Funds Year ended June 30, 2013

ALTERNATE DENTAL BENEFIT PENSION EXPENSE TOTAL PROGRAM ADJUSTMENT PROGRAM AGENCY FUND FUND FUND FUNDS Additions: Contributions: Members $ 946,849 — 87,937,284 88,884,133 Employers 178,474,795 3,929,914 37,086,156 219,763,865 Total contributions 179,694,644 3,929,914 125,023,440 308,647,998 Investment income: Net appreciation in fair value of investments 29 32 305 366 Interest 3,255 9,009 40,180 52,444 Total investment income 3,284 9,041 40,485 52,810 Total additions 179,697,928 3,938,955 125,063,925 308,700,808

Deductions: Benefits 179,539,932 3,459,830 119,656,246 302,656,008 Refunds of contributions and to the general fund 157,996 479,125 5,407,679 6,044,800 Total deductions 179,697,928 3,938,955 125,063,925 308,700,808 Change in net position — — — — Net position — beginning of year — — — — Net position — end of year $ — — — — See accompanying independent auditors’ report.

New Jersey Division of Pensions and Benefits 95 Schedule 10 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Combining Schedule of Fiduciary Net Position Information State Health Benefit Program Fund — State June 30, 2013

TOTAL HEALTH PRESCRIPTION STATE HEALTH BENEFIT DRUG BENEFIT PROGRAM FUND PROGRAM FUND PROGRAM FUND STATE STATE STATE Assets: Cash $ 663,227 152,961 816,188 Investments, at fair value: Cash Management Fund 26,799,563 32,029,753 58,829,316 Total investments 26,799,563 32,029,753 58,829,316 Receivables: Contributions: Members 296,079 235,011 531,090 Employers 6,098,063 129,744 6,227,807 Other 53,474 871,113 924,587 Total receivables 6,447,616 1,235,868 7,683,484 Total assets 33,910,406 33,418,582 67,328,988

Liabilities: Accounts payable and accrued expenses 200,000,002 20,496,300 220,496,302 Total liabilities 200,000,002 20,496,300 220,496,302 Net position held in trust for health benefits $ (166,089,596) 12,922,282 (153,167,314) See accompanying independent auditors’ report.

96 New Jersey Division of Pensions and Benefits Schedule 11 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Combining Schedule of Changes in Fiduciary Net Position Information State Health Benefit Program Fund — State Year ended June 30, 2013

TOTAL HEALTH PRESCRIPTION STATE HEALTH BENEFIT DRUG BENEFIT PROGRAM FUND PROGRAM FUND PROGRAM FUND STATE STATE STATE Additions: Contributions: Members $ 150,564,640 52,146,518 202,711,158 Employers 1,328,646,429 420,615,439 1,749,261,868 Total contributions 1,479,211,069 472,761,957 1,951,973,026 Investment income: Net appreciation/(depreciation) in fair value of investments (685) 2,420 1,735 Interest 256,203 75,812 332,015 Net investment income 255,518 78,232 333,750 Total additions 1,479,466,587 472,840,189 1,952,306,776

Deductions: Benefits 1,530,773,721 471,046,294 2,001,820,015 Administrative expenses 3,510,600 — 3,510,600 Total deductions 1,534,284,321 471,046,294 2,005,330,615 Net increase (decrease) (54,817,734) 1,793,895 (53,023,839) Net position held in trust for health benefits: Beginning of year (111,271,862) 11,128,387 (100,143,475) End of year $ (166,089,596) 12,922,282 (153,167,314) See accompanying independent auditors’ report.

New Jersey Division of Pensions and Benefits 97 Schedule 12 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Combining Schedule of Fiduciary Net Position Information State Health Benefit Program Fund — Local June 30, 2013

TOTAL HEALTH PRESCRIPTION STATE HEALTH BENEFIT DRUG BENEFIT PROGRAM FUND PROGRAM FUND PROGRAM FUND LOCAL LOCAL LOCAL Assets: Cash $ 434,677 16,066 450,743 Investments, at fair value: Cash Management Fund 189,318,859 86,743,927 276,062,786 Total investments 189,318,859 86,743,927 276,062,786 Receivables: Contributions: Members 500,382 371,863 872,245 Employers 62,979,717 12,010,120 74,989,837 Other 35,427 812,167 847,594 Total receivables 63,515,526 13,194,150 76,709,676 Total assets 253,269,062 99,954,143 353,223,205

Liabilities: Accounts payable and accrued expenses 120,146,252 9,525,000 129,671,252 Total liabilities 120,146,252 9,525,000 129,671,252 Net position held in trust for health benefits $ 133,122,810 90,429,143 223,551,953 See accompanying independent auditors’ report.

98 New Jersey Division of Pensions and Benefits Schedule 13 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Combining Schedule of Changes in Fiduciary Net Position Information State Health Benefit Program Fund — Local Year ended June 30, 2013

TOTAL HEALTH PRESCRIPTION STATE HEALTH BENEFIT DRUG BENEFIT PROGRAM FUND PROGRAM FUND PROGRAM FUND LOCAL LOCAL LOCAL Additions: Contributions: Members $ 33,322,999 16,725,890 50,048,889 Employers 869,896,636 218,518,742 1,088,415,378 Total contributions 903,219,635 235,244,632 1,138,464,267 Investment income: Net appreciation in fair value of investments 2,809 322 3,131 Interest 323,213 80,653 403,866 Net investment income 326,022 80,975 406,997 Total additions 903,545,657 235,325,607 1,138,871,264

Deductions: Benefits 854,920,636 206,612,671 1,061,533,307 Administrative expenses 1,713,172 — 1,713,172 Total deductions 856,633,808 206,612,671 1,063,246,479 Net increase 46,911,849 28,712,936 75,624,785 Net position held in trust for health benefits: Beginning of year 86,210,961 61,716,207 147,927,168 End of year $ 133,122,810 90,429,143 223,551,953 See accompanying independent auditors’ report.

New Jersey Division of Pensions and Benefits 99 Schedule 14 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Combining Schedule of Fiduciary Net Position Information State Health Benefit Program Fund — Education June 30, 2013

TOTAL HEALTH PRESCRIPTION STATE HEALTH BENEFIT DRUG BENEFIT PROGRAM FUND PROGRAM FUND PROGRAM FUND EDUCATION EDUCATION EDUCATION Assets: Cash $ 350,807 37,700 388,507 Investments, at fair value: Cash Management Fund 317,208,370 114,365,707 431,574,077 Total investments 317,208,370 114,365,707 431,574,077 Receivables: Contributions: Members 395,554 396,983 792,537 Employers 52,548,683 5,156,298 57,704,981 Other 13,214 1,123,092 1,136,306 Total receivables 52,957,451 6,676,373 59,633,824 Total assets 370,516,628 121,079,780 491,596,408

Liabilities: Accounts payable and accrued expenses 245,055,612 21,358,000 266,413,612 Total liabilities 245,055,612 21,358,000 266,413,612 Net position held in trust for health benefits $ 125,461,016 99,721,780 225,182,796 See accompanying independent auditors’ report.

100 New Jersey Division of Pensions and Benefits Schedule 15 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Combining Schedule of Changes in Fiduciary Net Position Information State Health Benefit Program Fund — Education Year ended June 30, 2013

TOTAL HEALTH PRESCRIPTION STATE HEALTH BENEFIT DRUG BENEFIT PROGRAM FUND PROGRAM FUND PROGRAM FUND EDUCATION EDUCATION EDUCATION Additions: Contributions: Members $ 31,126,848 20,973,183 52,100,031 Employers 1,893,459,560 431,630,921 2,325,090,481 Total contributions 1,924,586,408 452,604,104 2,377,190,512 Investment income: Net appreciation in fair value of investments 2,865 484 3,349 Interest 523,467 110,960 634,427 Net investment income 526,332 111,444 637,776 Total additions 1,925,112,740 452,715,548 2,377,828,288

Deductions: Benefits 1,907,472,237 424,927,422 2,332,399,659 Administrative expenses 4,137,828 — 4,137,828 Total deductions 1,911,610,065 424,927,422 2,336,537,487 Net increase 13,502,675 27,788,126 41,290,801 Net position held in trust for health benefits: Beginning of year 111,958,341 71,933,654 183,891,995 End of year $ 125,461,016 99,721,780 225,182,796 See accompanying independent auditors’ report.

New Jersey Division of Pensions and Benefits 101 Schedule 16 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Combining Schedule of Balance Sheet Information Agency Fund — Dental Expense Program June 30, 2013

TOTAL AGENCY FUND — DENTAL EXPENSE STATE LOCAL PROGRAM Assets: Cash and cash equivalents $ 673,910 19,733 693,643 Investments, at fair value: Cash Management Fund 19,724,945 9,763,352 29,488,297 Total investments 19,724,945 9,763,352 29,488,297 Receivables: Contributions 675,779 16,976 692,755 Total receivables 675,779 16,976 692,755 Total assets 21,074,634 9,800,061 30,874,695

Liabilities: Accounts payable and accrued expenses 21,074,634 9,800,061 30,874,695 Total liabilities $ 21,074,634 9,800,061 30,874,695 See accompanying independent auditors’ report.

102 New Jersey Division of Pensions and Benefits Schedule 17 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Combining Schedule of Changes in Fiduciary Net Position Information Agency Fund — Dental Expense Program Year ended June 30, 2013

TOTAL AGENCY FUND — DENTAL EXPENSE STATE LOCAL PROGRAM Additions: Contributions: Members $ 51,687,697 36,249,587 87,937,284 Employers 33,594,744 3,491,412 37,086,156 Total contributions 85,282,441 39,740,999 125,023,440 Investment income: Net appreciation in fair value of investments 290 15 305 Interest 29,304 10,876 40,180 Total investment income 29,594 10,891 40,485 Total additions 85,312,035 39,751,890 125,063,925

Deductions: Benefits 81,190,403 38,465,843 119,656,246 Refunds of contributions and to the general fund 4,121,632 1,286,047 5,407,679 Total deductions 85,312,035 39,751,890 125,063,925 Change in net position — — — Net position — beginning of year — — — Net position — end of year $ — — — See accompanying independent auditors’ report.

New Jersey Division of Pensions and Benefits 103 Schedule 18 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Schedule of Changes in Assets and Liabilities Information Agency Fund — Alternate Benefit Program Fund June 30, 2013

BALANCE BALANCE JUNE 30, 2012 ADDITIONS DEDUCTIONS JUNE 30, 2013 Assets: Cash and cash equivalents $ 752,115 159,545,785 159,935,115 362,785 Investments, at fair value: Cash Management Fund 558,756 185,061,944 184,276,578 1,344,122 Receivables: Other contributions 30,816,885 30,598,386 30,816,885 30,598,386 Total assets $ 32,127,756 375,206,115 375,028,578 32,305,293 Liabilities: Accounts payable and accrued expenses $ 32,028,529 34,486,560 34,365,389 32,149,700 Due to State of New Jersey 99,227 244,108 187,742 155,593

Total liabilities $ 32,127,756 34,730,668 34,553,131 32,305,293 See accompanying independent auditors’ report.

104 New Jersey Division of Pensions and Benefits Schedule 19 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Schedule of Changes in Assets and Liabilities Information Agency Fund — Pension Adjustment Fund June 30, 2013

BALANCE BALANCE JUNE 30, 2012 ADDITIONS DEDUCTIONS JUNE 30, 2013 Assets: Cash and cash equivalents $ 610,514 3,207,549 3,301,591 516,472 Investments, at fair value: Cash Management Fund 1,420,116 4,296,771 3,631,338 2,085,549 Receivables: State related employer contributions 852,147 3,421,388 3,645,258 628,277 Other contributions 9,435 34,146 39,691 3,890 Total assets $ 2,892,212 10,959,854 10,617,878 3,234,188 Liabilities: Assets held for local contributing employers $ 2,412,989 448,186 (601) 2,861,776 Pension adjustment payroll payable 237,510 3,461,482 3,446,110 252,882 Due to State of New Jersey 64,128 95,036 64,128 95,036 Due to other funds 177,585 2,569,122 2,722,213 24,494

Total liabilities $ 2,892,212 6,573,826 6,231,850 3,234,188 See accompanying independent auditors’ report.

New Jersey Division of Pensions and Benefits 105 Schedule 20 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Schedule of Changes in Assets and Liabilities Information Agency Fund — Dental Expense Program — Total June 30, 2013

BALANCE BALANCE JUNE 30, 2012 ADDITIONS DEDUCTIONS JUNE 30, 2013 Assets: Cash and cash equivalents $ 1,048,014 37,647,373 38,001,744 693,643 Investments, at fair value: Cash Management Fund 26,256,866 190,441,901 187,210,470 29,488,297 Receivables: Other contributions (2,286,141) 125,367,419 122,388,523 692,755 Total assets $ 25,018,739 353,456,693 347,600,737 30,874,695 Liabilities: Accounts payable and accrued expenses $ 25,018,739 76,233,756 70,377,800 30,874,695 Total liabilities $ 25,018,739 76,233,756 30,377,800 30,874,695 See accompanying independent auditors’ report.

106 New Jersey Division of Pensions and Benefits Schedule 21 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Schedule of Changes in Assets and Liabilities Information Agency Fund — Dental Expense Program — State June 30, 2013

BALANCE BALANCE JUNE 30, 2012 ADDITIONS DEDUCTIONS JUNE 30, 2013 Assets: Cash and cash equivalents $ 651,305 32,526,886 32,526,886 673,910 Investments, at fair value: Cash Management Fund 15,956,388 150,989,086 147,220,529 19,724,945 Receivables: Other contributions 572,165 82,664,609 82,560,995 675,779 Total assets $ 17,179,858 266,180,581 262,285,805 21,074,634 Liabilities: Accounts payable and accrued expenses $ 17,179,858 69,591,369 65,696,593 21,074,634

Total liabilities $ 17,179,858 69,591,369 65,696,593 21,074,634 See accompanying independent auditors’ report.

New Jersey Division of Pensions and Benefits 107 Schedule 22 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Schedule of Changes in Assets and Liabilities Information Agency Fund — Dental Expense Program — Local June 30, 2013

BALANCE BALANCE JUNE 30, 2012 ADDITIONS DEDUCTIONS JUNE 30, 2013 Assets: Cash and cash equivalents $ 396,709 5,120,487 5,497,463 19,733 Investments, at fair value: Cash Management Fund 10,300,478 39,452,815 39,989,941 9,763,352 Receivables: Other contributions (2,858,306) 42,702,810 39,827,528 16,976 Total assets $ 7,838,881 87,276,112 85,314,932 9,800,061 Liabilities: Accounts payable and accrued expenses $ 7,838,881 6,642,387 4,681,207 9,800,061 Total liabilities $ 7,838,881 6,642,387 4,681,207 9,800,061 See accompanying independent auditors’ report.

108 New Jersey Division of Pensions and Benefits Schedule 23 Schedule Teachers’ June 30, 2013 June STATE OF NEW JERSEY STATE DIVISION OF PENSIONS AND BENEFITS Fiduciary Funds — Select Pension Trust Funds Trust Fiduciary Funds — Select Pension Combining Schedule of Fiduciary Net Position Information Combining Schedule of Fiduciary Net Position Fund System System Fund System System Fund Total Pension Retirement Retirement Pension Retirement Retirement Annuity Firemen’s Judicial Firemen’s Officers’ Employees’ Police and Police and Police and Police Prison Public State Pension Consolidated health benefits $4,353,816 225,830,817 22,504,937,545 8,171,919 27,920,036,174 1,788,625,722 26,059,372,741 78,511,328,734 for pension and for Total investmentsTotal MembersEmployers 4,354,730 228,395,417 21,293,894,458 receivablesTotal 8,033,501 assets 25,595,872,988Total 1,785,464,253 26,052,469,039 74,968,484,386 — — 229,144 252,827 4,668,454 1,447,252 67,840 1,380,178,695 51,395,322 234,681,070 liabilitiesTotal 964,876,818 23,104,351,943Net position held in trust 8,318,421 70,748 28,788,159,403 2,658,984,681 1,842,483,768 — — 26,981,308,676 80,963,971,735 18,490,979 2,072,511,300 314,638 71,020,892 374,226,615 4,433,628,114 8,850,253 1,074,313 599,414,398 — 78,322,751 202,066,105 71,469,595 146,502 3,108,925,553 868,123,229 53,858,046 921,935,935 2,452,643,001 Cash Management Fund Fund ACommon Pension Fund BCommon Pension Fund DCommon Pension 4,354,730 Fund ECommon Pension 6,800,546 — — 190,011,329 — 66,578,189 — 51,397,224 5,760,867,621 8,033,501 44,584,609 4,870,208,286 59,034,849 4,019,607,827 687,473,519 5,617,716,153 27,300,704 — — 506,121,173 7,190,554,565 — 1,430,095,502 5,894,378,053 — 520,114,573 5,010,785,888 396,838,281 6,812,680,963 7,426,192,820 358,088,374 20,964,307,768 5,821,184,095 483,122,321 17,034,005,939 5,256,002,253 14,689,068,951 7,042,968,698 20,015,522,984 MortgagesContributions: Accrued interest and dividendsMembers’ loansSecurities sold in transitOther 23 — —accrued expenses 29 — — 835,483,242 premiums payableinsurance 3,319,010rebates payable 229,121 — 965,480 308,953,101 45,498,972 2,718 — — 161,076 10 6,135,472 67,840 (307) — — 2,017 — — 507,935,995 3,914,928 3,893,232 70,738 17,394,165 4,783,831 7,514,477 120 — 222,215,999 1,239 428,032,562 — 1,057,464,740 — 73,859,676 22,381 2,440 7,051,884 — — 2,215,830 283,901 — 3,323,649 532,329,180 835,483,242 73,714 16,349,095 57,025,057 37,976,943 135,065,516 3,004,829 — 552,919,327 14,113,195 1,556,041,843 45,498,972 Cash and cash equivalentsSecurities lending collateral value: at fair Investments, $ 84,580 51,720 — 1,992,216 4,786,681 428,286,574 214,172 656,487 — 532,645,247 529,005 37,999,531 1,365,512 553,247,510 1,556,965,543 4,893,692 Recievables: and Accounts payable Retirement benefits payable Noncontributory life group Securities and lending collateral 311,920 3,998,889 163,573,676 145,263 254,882,489 15,523,488 308,986,722 747,422,447 Assets: Liabilities: independent auditors’See accompanying report.

New Jersey Division of Pensions and Benefits 109 Schedule 24 Schedule Teachers’ STATE OF NEW JERSEY STATE Year ended June 30, 2013 ended June Year DIVISION OF PENSIONS AND BENEFITS Fiduciary Funds — Select Pension Trust Funds Trust Fiduciary Funds — Select Pension Combining Schedule of Changes in Fiduciary Net Position Information Combining Schedule of Changes in Fiduciary Net Position 4,476 25,950,370 2,193,318,613 11,599 2,696,101,746 191,983,382 2,869,976,968 7,977,347,154 Fund System System Fund System System Fund Total Pension Retirement Retirement Pension Retirement Retirement Annuity Firemen’s Judicial Firemen’s Officers’ Employees’ Police and Police and Police and Police Prison Public State Pension Consolidated Total contributionsTotal 3,389,137 15,711,226 1,286,306,574 incomeNet investment 889,542 additionsTotal 2,030,445,802 49,657,127 217 1,381,962,796 25,932,027 3,389,354 4,768,362,204 deductionsTotal 2,191,780,555Net increase/(decrease) 41,643,253 3,478,087,129 (505,044)Beginning of year 9,070 3,894,398 2,687,826,583End of year 898,612 (6,204,848) 1,497,852,980 4,718,272,385 47,848,101 191,873,254 1,980,234,149 2,865,390,916 4,858,860 241,530,381 4,247,353,712 (872,317) 7,962,812,622 232,035,665 1,770,929 1,536,598,176 21,007,084,565 12,731,174,826 $4,353,816 3,181,674,209 58,777,897 225,830,817 9,044,236 182,752,484 22,504,937,545 26,383,437,998 514,536,491 3,732,817,221 1,729,847,825 25,544,836,250 8,171,919 3,600,183,335 9,130,991,491 27,920,036,174 74,911,145,399 1,788,625,722 26,059,372,741 78,511,328,734 fair value of investments value fair 33 20,375,064 1,614,143,598 43 2,017,407,576 147,528,030 2,212,137,760 6,011,592,104 MembersEmployers $ — 911,150 3,402,807 12,308,419 387,775,184 898,531,390 — — 845,999,525 1,184,446,277 21,875,233 27,781,894 726,523,838 655,438,958 1,985,576,587 2,779,418,088 OtherNet appreciation in InterestDividends expenseLess investment 2,477,987 4,259 — 4,443 miscellaneous expenses 18,343 — 4,094,823 1,538,058 — 1,480,483 451,072,019 11,739 128,102,996 889,542 2,529 11,556 163,232 518,799,577 8,275,163 3,881,457 — 32,889,692 — 159,894,593 110,128 492,704,785 11,565,660 6,965 1,499,576,895 4,586,052 165,134,423 22,814,653 — 466,178,155 14,534,532 294,886 12,482,060 — 39,654,992 3,367,529 Contributions: Investment income: Investment BenefitsRefunds of contributions and Administrative and health benefits — 3,882,659 47,684,869 1,969,468,736 — 6,883,956 1,763,964 3,040,874,320 182,418,714 3,673,109,659 — 8,919,202,921 117,985,236 38,884 47,225,502 172,133,578 Additions: Deductions: pension Net position held in trust for independent auditors’See accompanying report.

110 New Jersey Division of Pensions and Benefits Schedule 25 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

3D SYSTEMS CORP 880,000 $ 38,632,000 3I GROUP PLC 1,563,983 8,008,188 ABB LTD 1,603,563 34,760,954 ABBOTT LABORATORIES 2,616,000 91,246,080 ABBVIE INC 2,331,000 96,363,540 ABERCROMBIE + FITCH CO CL A 68,500 3,099,625 ABERTIS INFRAESTRUCTURAS SA 306,979 5,346,954 ACADIA REALTY TRUST 221,996 5,481,081 ACCELRYS INC 70,000 588,000 ACCO BRANDS CORP 212,000 1,348,320 ACE LTD 120,000 10,737,600 ACORDA THERAPEUTICS INC 90,000 2,969,100 ACS ACTIVIDADES CONS Y SERV 176,534 4,669,665 ACTAVIS INC 255,000 32,186,100 ACTELION LTD 152,454 9,168,348 ACTIVISION BLIZZARD INC 1,900,000 27,094,000 ADARO ENERGY TBK PT 31,089,500 2,693,901 ADECCO SA 105,130 5,983,460 ADIDAS AG 190,692 20,607,982 ADOLFO DOMINGUEZ 352,344 1,612,139 ADT CORP/THE 292,000 11,636,200 ADTRAN INC 150,000 3,691,500 ADVANCE AUTO PARTS INC 72,500 5,884,825 ADVANCED INFO SERVICE 320,300 2,912,287 ADVANCED INFO SERVICE NVDR 808,800 7,353,912 ADVANCED SEMICONDUCTOR ADR 1,320,400 5,360,824 AEGON NV 1,061,320 7,089,538 AEON CO LTD 328,300 4,303,081 AES CORP 1,275,000 15,287,250 AETNA INC 1,635,120 103,895,525 AFFILIATED MANAGERS GROUP 20,000 3,278,800 AFFYMAX INC 220,000 226,600 AFFYMETRIX INC 40,000 177,600 AFLAC INC 10,000 581,200 AGEAS 254,812 8,934,583 AGGREKO PLC 148,986 3,710,380 AGILENT TECHNOLOGIES INC 350,000 14,966,000 AGL ENERGY LTD 292,316 3,874,435 AGL RESOURCES INC 70,000 3,000,200 AGNICO EAGLE MINES LTD 85,700 2,355,846 AGREE REALTY CORP 205,000 6,051,600 AGRIUM INC W/D 144,486 12,488,017 AIA GROUP LTD 7,731,400 32,744,331 AIR CHINA LTD H 6,570,000 4,709,586 AIR LIQUIDE SA 221,605 27,327,596 AIR PRODUCTS + CHEMICALS INC 50,000 4,578,500 AIRASIA BHD 5,630,100 5,684,450 AIRASIA X BHD 2,195,800 868,729 AIRSPAN NETWORKS INC 7,000 20,930 AISIN SEIKI CO LTD 149,300 5,703,866 AJINOMOTO CO INC 756,000 11,081,049

New Jersey Division of Pensions and Benefits 111 Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

AKAMAI TECHNOLOGIES INC 80,000 $3,404,000 AKBANK T.A.S. 3,555,963 14,485,927 AKORN INC 50,000 676,000 AKZO NOBEL 217,190 12,228,442 ALASKA AIR GROUP INC 1,140,000 59,280,000 ALEXANDER + BALDWIN INC 170,000 6,757,500 ALEXANDRIA REAL ESTATE EQUITIES 155,975 10,250,677 ALFA S.A.B. A 3,821,800 9,142,381 ALGETA ASA 292,000 11,056,313 ALIMENTATION COUCHE TARD B 150,000 8,872,458 ALKERMES PLC 130,000 3,728,400 ALLEGHANY CORP 9,550 3,660,610 ALLEGHENY TECHNOLOGIES INC 1,100,000 28,941,000 ALLERGAN INC 408,800 34,437,312 ALLIANCE ONE INTERNATIONAL 600,000 2,280,000 ALLIANT ENERGY CORP 65,000 3,277,300 ALLIANZ SE 412,690 60,214,803 ALLSCRIPTS HEALTHCARE SOLUTION 70,000 905,800 ALLSTATE CORP 588,054 26,463,558 ALLY FINANCIAL INC 2,401 2,282,075 ALSTRIA OFFICE REIT AG 120,000 1,310,404 ALTAGAS LTD 150,000 5,241,006 ALTERA CORP 500,000 16,495,000 ALTRIA GROUP INC 3,356,000 117,426,440 AMADEUS IT HOLDING SA 380,777 12,153,563 AMAG PHARMACEUTICALS INC 296,167 6,589,716 AMAZON.COM INC 410,000 113,852,900 AMBUJA CEMENT GDR 2,171,323 6,809,269 AMC NETWORKS INC A 385,000 25,182,850 AMCOR LIMITED 818,095 7,593,272 AMEC PLC 225,010 3,429,791 AMEREN CORPORATION 192,000 6,612,480 AMERESCO INC CL A 125,000 1,126,250 AMERICA MOVIL ADR SERIES L 586,350 12,753,113 AMERICAN APPAREL INC 270,000 518,400 AMERICAN ASSETS TRUST INC 382,500 11,803,950 AMERICAN CAMPUS COMMUNITIES 311,516 12,666,241 AMERICAN CAPITAL MORTGAGE INVESTMENT 105,000 1,886,850 AMERICAN EAGLE OUTFITTERS 170,000 3,104,200 AMERICAN ELECTRIC POWER 416,000 18,628,480 AMERICAN EXPRESS CO 920,000 68,779,200 AMERICAN INTERNATIONAL GROUP 2,462,000 110,051,400 AMERICAN REALTY CAPITAL PROPERTIES 75,000 1,144,500 AMERICAN RESIDENTIAL PROPERTIES 550,000 9,460,000 AMERICAN STATES WATER CO 22,500 1,207,575 AMERICAN TOWER CORP 1,012,300 74,069,991 AMERICAN WATER WORKS CO INC 30,000 1,236,900 AMERIPRISE FINANCIAL INC 1,132,000 91,556,160 AMERISOURCEBERGEN CORP 265,000 14,794,950 AMGEN INC 531,355 52,423,484 AMMB HOLDINGS BHD 2,138,500 4,968,061

112 New Jersey Division of Pensions and Benefits Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

AMOREPACIFIC CORP 5,284 $4,233,492 AMP LTD 2,871,357 11,170,263 ANADARKO PETROLEUM CORP 793,000 68,142,490 ANADOLU EFES BIRACILIK VE 1,147,329 16,649,932 ANALOG DEVICES INC 300,000 13,518,000 ANGIODYNAMICS INC 130,000 1,466,400 ANGLO AMERICAN PLC 850,832 16,337,188 ANGLOGOLD ASHANTI LTD 265,655 3,745,909 ANGLOGOLD ASHANTI SPON ADR 13,210 188,903 ANHANGUERA EDUCACIONAL PARTICIPACOES 673,600 3,933,564 ANHEUSER BUSCH INBEV NV 584,411 51,952,202 ANHUI CONCH CEMENT CO LTD H 1,607,000 4,340,527 ANSYS INC 100,000 7,310,000 ANTOFAGASTA PLC 222,451 2,682,262 AON PLC 395,000 25,418,250 AP MOELLER MAERSK A/S B 1,941 13,882,286 APACHE CORP 275,000 23,053,250 APARTMENT INVT + MGMT CO A 180,000 5,407,200 APOLLO GROUP INC CL A 1,500,000 26,580,000 APPLE INC 1,414,000 560,057,120 APPLIED MATERIALS INC 1,500,000 22,365,000 APPLIED MICRO CIRCUITS CORP 750,000 6,600,000 AQUA AMERICA INC 121,666 3,806,929 AQUARIUS PLATINUM LTD 2,333,295 1,397,869 ARBOR REALTY TRUST INC 200,000 1,256,000 ARCELORMITTAL 768,693 8,567,012 ARCH CAPITAL GROUP LTD 338,556 17,405,164 ARCH COAL INC 494,000 1,867,320 ARCHER DANIELS MIDLAND CO 562,526 19,075,257 ARES COMMERCIAL REAL ESTATE 639,875 8,196,799 ARIAD PHARMACEUTICALS INC 150,000 2,623,500 ARKEMA 74,326 6,814,086 ARM HOLDINGS PLC 1,100,801 13,273,203 ARRAY BIOPHARMA INC 265,000 1,203,100 ARRIS GROUP INC 150,000 2,152,500 ARYZTA AG 187,839 10,541,934 ASAHI GLASS CO LTD 540,692 3,516,253 ASAHI GROUP HOLDINGS LTD 425,500 10,541,657 ASAHI KASEI CORP 720,000 4,754,820 ASCENA RETAIL GROUP INC 126,000 2,198,700 ASHFORD HOSPITALITY TRUST 135,000 1,545,750 ASHLAND INC 50,000 4,175,000 ASML HOLDING NV 228,305 17,989,717 ASPEN TECHNOLOGY INC 250,000 7,197,500 ASSA ABLOY AB B 322,292 12,548,924 ASSICURAZIONI GENERALI 811,157 14,149,804 ASSOCIATED BRITISH FOODS PLC 350,000 9,210,163 ASSOCIATED ESTATES REALTY CP 170,000 2,733,600 ASTELLAS PHARMA INC 441,500 23,956,158 ASTRA INTERNATIONAL TBK PT 11,212,000 7,907,708 ASTRAZENECA PLC 794,373 37,530,325

New Jersey Division of Pensions and Benefits 113 Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

ASTRO MALAYSIA HOLDINGS BHD 6,649,500 $6,376,954 ASUSTEK COMPUTER GDR 107,825 4,630,455 ASX LTD 158,938 4,811,154 ASX LTD RIGHTS 16,730 47,626 AT+T INC 3,700,000 130,980,000 ATEA ASA 494,878 4,964,138 ATMEL CORP 4,500,000 33,075,000 ATMOS ENERGY CORP 50,000 2,053,000 AUGME TECHNOLOGIES INC 500,000 200,000 AUST AND NZ BANKING GROUP 1,748,710 45,747,495 AUTODESK INC 1,260,000 42,764,400 AUTOMATIC DATA PROCESSING 740,000 50,956,400 AUTOZONE INC 27,300 11,566,737 AVALONBAY COMMUNITIES INC 260,000 35,076,600 AVERY DENNISON CORP 133,000 5,687,080 AVID TECHNOLOGY INC 280,000 1,646,400 AVIV REIT INC 55,000 1,390,950 AVIVA PLC 1,575,566 8,115,291 AVNET INC 330,000 11,088,000 AVON PRODUCTS INC 360,000 7,570,800 AVX CORP 270,000 3,172,500 AXA SA 1,225,515 24,046,104 AXIALL CORP 500,000 21,290,000 AXIATA GROUP BERHAD 2,674,300 5,611,840 AXIS CAPITAL HLDGS LTD 40,000 898,000 B/E AEROSPACE INC 140,000 8,831,200 BABCOCK + WILCOX CO/THE 3,000,000 90,090,000 BAE SYSTEMS PLC 2,361,218 13,716,227 BAIDU INC SPON ADR 248,100 23,452,893 BAKER HUGHES INC 965,147 44,522,231 BALL CORP 1,361,100 56,540,094 BALLANTYNE STRONG INC 640,000 2,700,800 BANCO BILBAO VIZCAYA ARGENTA 3,525,160 29,532,127 BANCO BRADESCO ADR 501,520 6,524,775 BANCO BRADESCO SA PREF 1,130,240 14,735,254 BANCO DE SABADELL SA 1,810,875 3,001,177 BANCO DO BRASIL S.A. 4,008,017 40,151,837 BANCO ESPIRITO SANTO 7,009,392 5,603,359 BANCO POPULAR ESPANOL 2,000,000 6,122,290 BANCO SANTANDER SA 7,155,676 45,594,972 BANGKOK BANK PUBLIC CO 2,855,300 18,780,629 BANK LEUMI LE ISRAEL 2,494,999 8,293,018 BANK MANDIRI PERSERO TBK PT 24,229,052 21,970,929 BANK OF AMERICA CORP 11,993,615 154,237,889 BANK OF AYUDHYA PCL FOREIGN 12,304,900 14,084,280 BANK OF CHINA LTD H 44,928,000 18,477,805 BANK OF EAST ASIA 1,486,400 5,356,241 BANK OF MONTREAL 403,453 23,328,720 BANK OF NEW YORK MELLON CORP 849,167 23,819,134 BANK OF NOVA SCOTIA 679,649 36,219,600 BANK PEKAO SA 207,232 9,330,992

114 New Jersey Division of Pensions and Benefits Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

BANK RAKYAT INDONESIA PERSERO 6,444,500 $5,032,229 BANK TABUNGAN NEGARA PERSERO 38,175,680 4,423,379 BANK ZACHODNI WBK SA 211,270 17,757,246 BANPU PUBLIC CO LTD 779,750 6,058,996 BANQUE CANTONALE VAUDOIS 24,618 12,202,972 BAOXIN AUTO GROUP LTD 1,617,500 1,032,267 BARCLAYS PLC 7,521,704 31,766,053 BARRICK GOLD CORP 1,313,204 20,666,510 BASF SE 597,938 53,341,243 BASIC ENERGY SERVICES INC 45,000 544,050 BAXTER INTERNATIONAL INC 511,000 35,396,970 BAYER AG 913,170 97,249,543 BAYER AG SPONSORED ADR 15,000 1,600,050 BAYERISCHE MOTOREN WERKE AG 247,378 21,602,004 BB SEGURIDADE PARTICIPACOES 2,105,900 16,778,181 BB+T CORPORATION 40,000 964,000 BCE INC 143,100 5,849,066 BDO UNIBANK INC 5,490,350 10,802,772 BEAM INC 40,000 2,524,400 BEASLEY BROADCAST GROUP INC 298,000 2,497,240 BEAZER HOMES USA INC 1,075,000 18,834,000 BEBE STORES INC 50,000 280,500 BECTON DICKINSON AND CO 180,000 17,789,400 BED BATH + BEYOND INC 681,000 48,282,900 BEIJING ENTERPRISES HOLDINGS 559,500 4,032,315 BEL FUSE INC CL B 90,000 1,210,500 BELLE INTERNATIONAL HOLDINGS 2,496,000 3,430,397 BENCHMARK ELECTRONICS INC 50,000 1,005,000 BERKSHIRE HATHAWAY INC CL A 95 16,017,000 BERKSHIRE HATHAWAY INC CL B 940,000 105,204,800 BERRY PETROLEUM CO CLASS A 920,000 38,934,400 BEZEQ THE ISRAELI TELECOM CO 1,225,000 1,635,420 BG GROUP PLC 2,849,498 48,339,721 BHP BILLITON LTD 2,069,494 59,424,562 BHP BILLITON PLC 1,437,569 36,673,680 BIDVEST GROUP LTD 841,972 20,775,349 BILL BARRETT CORP 80,000 1,617,600 BIOGEN IDEC INC 130,000 27,976,000 BLACK EARTH FARMING LTD SDR 486,197 504,245 BLACK HILLS CORP 45,000 2,193,750 BLACKROCK CORPORATE HIGH YIELD 275,000 3,294,500 BLACKROCK DEBT STRATEGIES FUND 811,541 3,449,049 BLACKROCK INC 355,000 91,181,750 BLACKSTONE MORTGAGE TRU CL A 506,000 12,498,200 BLOOMBERRY RESORTS CORP 11,382,300 2,371,313 BLUEBIRD BIO INC 18,000 449,460 BM+FBOVESPA SA 416,800 2,332,065 BNP PARIBAS 607,092 33,123,650 BOARDWALK REAL ESTATE INVEST 35,000 1,933,883 BOC HONG KONG HOLDINGS LTD 2,086,500 6,415,779 BOEING CO/THE 955,000 97,830,200

New Jersey Division of Pensions and Benefits 115 Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

BOMBARDIER INC B 1,123,101 $4,982,333 BONDHOLDCO 32,900 89,807 BOSTON BEER COMPANY INC A 128,000 21,841,920 BOSTON PROPERTIES INC 150,430 15,865,852 BOSTON PROPERTIES INC 30,500 3,216,835 BOSTON SCIENTIFIC CORP 1,817,697 16,850,051 BOUYGUES SA 160,031 4,079,197 BP PLC 11,021,142 76,098,545 BRAMBLES LTD 1,488,697 12,727,423 BRANDYWINE REALTY TRUST 240,000 3,244,800 BRE PROPERTIES INC 38,500 1,925,770 BRENNTAG AG 68,243 10,351,945 BRF SA 1,287,654 28,241,478 BRIDGESTONE CORP 387,782 13,194,777 BRIGGS + STRATTON 150,000 2,970,000 BRIGHTCOVE 527,000 4,616,520 BRINK S CO/THE 100,000 2,551,000 BRISTOL MYERS SQUIBB CO 2,186,938 97,734,259 BRITISH AMERICAN TOBACCO BHD 547,800 10,333,559 BRITISH AMERICAN TOBACCO PLC 1,184,027 60,474,044 BRITISH LAND CO PLC 1,501,203 12,898,498 BRITISH SKY BROADCASTING GRO 1,088,515 13,075,533 BROADCOM CORP CL A 1,400,000 47,264,000 BROCADE COMMUNICATIONS SYS 150,000 864,000 BROOKFIELD ASSET MANAGE CL A 616,836 22,121,312 BSQUARE CORP 290,000 797,500 BT GROUP PLC 4,745,449 22,254,436 BTS RAIL MASS TRANSIT FUND F 18,683,300 7,168,508 BURBERRY GROUP PLC 456,331 9,350,506 C+J ENERGY SERVICES INC 80,000 1,549,600 CABLEVISION SYSTEMS NY GROUP 2,510,000 42,218,200 CABOT OIL + GAS CORP 170,000 12,073,400 CADENCE DESIGN SYS INC 720,000 10,425,600 CAIRN ENERGY PLC 280,396 1,076,375 CALAVO GROWERS INC 744,800 20,251,112 CALGON CARBON CORP 640,000 10,675,200 CALIFORNIA WATER SERVICE GROUP 45,000 877,950 CALIX NETWORKS INC 40,000 404,000 CALPINE CORP 40,000 849,200 CAMDEN PROPERTY TRUST 96,000 6,637,440 CAMECO CORP 215,569 4,436,232 CAMERON INTERNATIONAL CORP 192,000 11,742,720 CAMPUS CREST COMMUNITIES INC 133,000 1,534,820 CANADIAN IMPERIAL BANK OF COMMERCE 289,220 20,462,942 CANADIAN REAL ESTATE INVESTMENT TRUST 53,404 2,204,601 CANADIAN NATL RAILWAY CO 320,861 31,144,762 CANADIAN NATURAL RESOURCES 662,386 18,616,754 CANADIAN OIL SANDS LTD 517,500 9,550,903 CANADIAN PACIFIC RAILWAY LTD 125,300 15,147,172 CANADIAN UTILITIES LTD A 210,400 7,361,357 CANON INC 2,115,253 68,886,530

116 New Jersey Division of Pensions and Benefits Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

CAP GEMINI 277,870 $13,490,413 CAPITA PLC 708,837 10,385,402 CAPITAL ONE FINANCIAL CORP 990,000 62,181,900 CAPITAL SENIOR LIVING CORP 35,000 836,500 CAPITALAND LTD 1,942,355 4,716,907 CARDINAL HEALTH INC 435,000 20,532,000 CAREFUSION CORP 430,000 15,845,500 CARLSBERG AS B 58,693 5,247,250 CARMAX INC 115,000 5,308,400 CARMIKE CINEMAS INC 90,000 1,742,400 CARNIVAL PLC 272,032 9,448,335 CARREFOUR SA 437,685 12,021,375 CARTER S INC 166,000 12,295,620 CASH AMERICA INTL INC 100,000 4,546,000 CATAMARAN CORP 116,311 5,643,832 CATERPILLAR INC 120,000 9,898,800 CAVIUM INC 300,000 10,611,000 CBRE GROUP INC A 335,000 7,825,600 CBS CORP CL B 1,100,000 53,757,000 CCR SA 3,612,600 28,945,936 CELGENE CORP 240,000 28,058,400 CELLDEX THERAPEUTICS INC 530,000 8,273,300 CEMEX SAB ADR 3,217,835 34,044,694 CENOVUS ENERGY INC 817,107 23,236,371 CENTERPOINT ENERGY INC 400,000 9,396,000 CENTRAL JAPAN RAILWAY CO 124,700 15,227,372 CENTRICA PLC 4,038,308 22,061,902 CERNER CORP 300,000 28,827,000 CF INDUSTRIES HOLDINGS INC 307,200 52,684,800 CHAILEASEHOLDCO 628,708 7,390,463 CHARLES RIVER LABORATORIES 50,000 2,051,500 CHART INDUSTRIES INC 560,000 52,690,400 CHARTER COMMUNICATIONS INC. 2,107 164,346 CHATHAM LODGING TRUST 219,100 3,764,138 CHECKPOINT SYSTEMS INC 225,000 3,192,750 CHEIL INDUSTRIES INC 51,376 4,030,725 CHEIL WORLDWIDE INC 110,785 2,386,332 CHENIERE ENERGY INC 75,000 2,082,000 CHENIERE ENERGY PARTNERS LP 175,000 5,230,750 CHESAPEAKE ENERGY CORP 3,100,000 63,178,000 CHESAPEAKE LODGING TRUST 634,400 13,189,176 CHEUNG KONG HOLDINGS LTD 1,773,000 24,047,342 CHEVRON CORP 886,900 104,955,746 CHICO S FAS INC 170,000 2,900,200 CHINA CONSTRUCTION BANK H 77,194,217 54,638,619 CHINA LONGYUAN POWER GROUP H 3,283,000 3,403,059 CHINA MENGNIU DAIRY CO 1,937,000 6,930,032 CHINA MERCHANTS HLDGS INTL 2,500,000 7,783,945 CHINA MOBILE LTD 2,118,500 22,178,241 CHINA MOBILE LTD SPON ADR 595,854 30,847,362 CHINA OVERSEAS GRAND OCEANS 1,552,000 1,980,932

New Jersey Division of Pensions and Benefits 117 Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

CHINA OVERSEAS LAND + INVEST 2,222,000 $5,801,118 CHINA PACIFIC INSURANCE GR H 7,085,400 22,609,043 CHINA PETROLEUM + CHEM ADR 60,100 5,499,150 CHINA PETROLEUM + CHEMICAL H 11,572,600 8,146,409 CHINA RESOURCES LAND LTD 550,000 1,499,739 CHINA RESOURCES POWER HOLDIN 1,050,000 2,507,107 CHINA SHENHUA ENERGY CO H 703,000 1,785,518 CHINA SOUTHERN AIRLINES CO H 1,094,000 442,884 CHINA STEEL CORP 935,520 766,308 CHRISTIAN DIOR 34,409 5,546,087 CHUBB CORP 687,000 58,154,550 CHUGAI PHARMACEUTICAL CO LTD 399,700 8,272,846 CHUNGHWA TELECOM CO LTD 541,760 1,843,766 CHURCH + DWIGHT CO INC 200,000 12,342,000 CIE FINANCIERE RICHEMON BR A 337,521 29,804,872 CIELO SA 1,790,112 45,379,811 CIENA CORP 1,250,000 24,275,000 CIGNA CORP 360,000 26,096,400 CIMAREX ENERGY CO 68,000 4,419,320 CIMB GROUP HOLDINGS BHD 3,946,000 10,341,155 CINEDIGM DIGITAL CINEMA A 2,400,000 3,408,000 CINEMARK HOLDINGS INC 900,000 25,128,000 CIPLA LTD SPON GDR 144A 808,200 5,330,645 CIRRUS LOGIC INC 1,700,000 29,512,000 CISCO SYSTEMS INC 7,900,000 192,049,000 CIT GROUP INC 850,000 39,635,500 CITIC SECURITIES CO LTD H 2,075,500 3,698,055 CITIGROUP INC 4,167,442 199,912,193 CITRIX SYSTEMS INC 1,030,000 62,139,900 CITY DEVELOPMENTS LTD 153,004 1,290,817 CITY NATIONAL CORP 72,000 4,562,640 CLEAN ENERGY FUELS CORP 2,500,000 33,000,000 CLEAN HARBORS INC 600,000 30,318,000 CLECO CORPORATION 60,000 2,785,800 CLIFFS NATURAL RESOURCES INC 1,400,000 22,750,000 CLOROX COMPANY 120,000 9,976,800 CLOUD PEAK ENERGY INC 264,000 4,350,720 CLP HOLDINGS LTD 1,904,500 15,407,682 CLUB MEDITERRANEE SA 665,752 15,170,063 CME GROUP INC 75,000 5,698,500 CMS ENERGY CORP 350,000 9,509,500 CNOOC LTD 19,345,000 32,822,165 COACH INC 150,000 8,563,500 COCA COLA CO/THE 5,615,000 225,217,650 COLGATE PALMOLIVE CO 1,550,000 88,799,500 COLONY FINANCIAL INC 25,000 497,250 COLOPLAST B 197,996 11,086,520 COMCAST CORP SPECIAL CL A 3,000,000 119,010,000 COMMERCIAL INTL BANK GDR 1,947,424 7,692,325 COMMERZBANK AG 802,646 6,988,149 COMMONWEALTH BANK OF AUSTRALIA 1,033,059 65,417,355

118 New Jersey Division of Pensions and Benefits Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

COMMUNITY HEALTH SYSTEMS INC 1,270,000 $59,537,600 COMMVAULT SYSTEMS INC 240,000 18,213,600 COMPAGNIE DE SAINT GOBAIN 362,032 14,635,256 COMPANHIA DE BEBIDAS 1,091,333 40,761,288 COMPASS GROUP PLC 1,413,750 18,011,575 COMPUTERSHARE LTD 764,242 7,184,369 COMPUWARE CORP 1,500,000 15,525,000 COMSTOCK RESOURCES INC 195,000 3,067,350 CONAGRA FOODS INC 385,000 13,448,050 CONN S INC 49,000 2,536,240 CONNECTICUT WATER SERVICE INC 45,000 1,291,500 CONOCOPHILLIPS 1,855,000 112,227,500 CONSOL ENERGY INC 400,000 10,840,000 CONSOLIDATED EDISON INC 203,000 11,836,930 CONTINENTAL AG 59,248 7,901,582 COPA HOLDINGS SA CLASS A 114,100 14,960,792 CORESITE REALTY CORP 175,000 5,566,750 CORNING INC 750,000 10,672,500 COSAN LTD CLASS A SHARES 41,600 672,256 COSCO CORP SINGAPORE LTD 1,093,000 642,029 COSCO PACIFIC LTD 7,630,000 9,827,264 COSMAX INC 64,444 2,578,776 COSTCO WHOLESALE CORP 385,000 42,569,450 COTY INC CL A 177,000 3,040,860 COUNTRY GARDEN HOLDINGS CO 4,343,890 2,256,974 COUNTRYWIDE PLC 75,000 574,450 COVANCE INC 79,750 6,072,165 COVIDIEN PLC 315,000 19,794,600 COWAY CO LTD 498,268 24,345,129 CP ALL PCL FOREIGN 6,818,500 8,573,964 CR BARD INC 45,000 4,890,600 CRAY INC 250,000 4,910,000 CREDICORP LTD 135,250 17,306,590 CREDIT AGRICOLE SA 855,061 7,338,907 CREDIT SUISSE GROUP AG 1,049,961 27,798,471 CREE INC 500,000 31,930,000 CRESCENT POINT ENERGY CORP 260,818 8,818,786 CRH PLC 644,371 13,024,449 CROMWELL PROPERTY GROUP 660,653 589,611 CROWN CASTLE INTL CORP 56,200 4,068,318 CROWN HOLDINGS INC 447,000 18,385,110 CROWN MEDIA HOLDINGS CL A 1,600,000 3,952,000 CSL LTD 331,519 18,686,820 CSX CORP 452,250 10,487,678 CTBC FINANCIAL HOLDING CO LT 1,951,912 1,208,100 CUBESMART 1,056,000 16,874,880 CUBIC CORP 900,000 43,290,000 CUI GLOBAL INC 525,000 2,913,750 CUMMINS INC 340,000 36,876,400 CUMULUS MEDIA INC CL A 352,100 1,193,619 CVS CAREMARK CORP 1,694,943 96,916,841

New Jersey Division of Pensions and Benefits 119 Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

CYPRESS SEMICONDUCTOR CORP 1,900,000 $20,387,000 CYRELA BRAZIL REALTY SA EMP 440,300 3,057,514 CYS INVESTMENTS INC 230,000 2,118,300 CYTEC INDUSTRIES INC 251,500 18,422,375 DAI ICHI LIFE INSURANCE 6,461 9,314,091 DAIBIRU CORP 110,000 1,223,637 DAIICHI SANKYO CO LTD 686,500 11,444,546 DAIKIN INDUSTRIES LTD 189,400 7,645,784 DAIMLER AG 594,269 35,907,808 DAITO TRUST CONSTRUCT CO LTD 88,300 8,311,320 DAIWA HOUSE INDUSTRY CO LTD 365,000 6,801,379 DAIWA SECURITIES GROUP INC 1,273,000 10,675,079 DANAHER CORP 400,000 25,320,000 DANONE 341,856 25,621,870 DANSKE BANK A/S 495,358 8,460,058 DARDEN RESTAURANTS INC 180,000 9,086,400 DBS GROUP HOLDINGS LTD 1,454,322 17,773,390 DDR CORP 741,000 12,620,050 DECKERS OUTDOOR CORP 32,500 1,641,575 DEERE + CO 690,000 56,062,500 DELHAIZE GROUP 91,047 5,620,317 DELTA AIR LINES INC 625,000 11,693,750 DELTA ELECTRONICS GDR 120,434 2,742,523 DELTA ELECTRONICS INC 292,352 1,331,489 DENBURY RESOURCES INC 425,000 7,361,000 DENDREON CORP 265,000 1,091,800 DENSO CORP 427,098 20,057,504 DENTSPLY INTERNATIONAL INC 280,000 11,468,800 DENTSU INC 168,900 5,832,053 DEUTSCHE BANK AG 654,925 27,373,672 DEUTSCHE BOERSE AG 139,290 9,156,002 DEUTSCHE LUFTHANSA 465,094 9,427,990 DEUTSCHE POST AG 555,033 13,776,264 DEUTSCHE TELEKOM AG 1,951,533 22,738,967 DEVON ENERGY CORPORATION 965,000 50,064,200 DEX MEDIA INC 991 17,419 DEXUS PROPERTY GROUP 500,000 489,712 DIAGEO PLC 2,271,248 64,762,291 DIAL GLOBAL INC 110,000 29,700 DIAMOND FOODS INC 400,000 8,300,000 DIAMOND OFFSHORE DRILLING 79,000 5,434,410 DICK S SPORTING GOODS INC 109,000 5,456,540 DIGI INTERNATIONAL INC 330,000 3,092,100 DIGITAL REALTY TRUST INC 149,500 9,119,500 DIGITAL RIVER INC 30,000 563,100 DIRECTBUY HLDGS INC. 693 35 DISCOVER FINANCIAL SERVICES 411,500 19,603,860 DISCOVERY COMMUNICATIONS C 180,000 12,538,800 DISH NETWORK CORP A 1,200,000 51,024,000 DMCI HOLDINGS INC 6,196,470 7,401,339 DNB ASA 554,197 7,982,513

120 New Jersey Division of Pensions and Benefits Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

DOCTOR REDDY S LAB ADR 337,946 $12,781,118 DOLLAR GENERAL CORP 152,000 7,665,360 DOLLAR TREE INC 816,000 41,485,440 DOMINION RESOURCES INC/VA 515,994 29,318,779 DON QUIJOTE CO LTD 400,000 19,429,204 DOOSAN CORP 7,195 809,560 DOUGLAS EMMETT INC 331,303 8,266,010 DOVER MOTORSPORTS INC 300,000 648,000 DOW CHEMICAL CO/THE 1,304,500 41,965,765 DREW INDUSTRIES INC 500,000 19,660,000 DSW INC CLASS A 68,499 5,032,622 DTE ENERGY COMPANY 135,000 9,046,350 DU PONT (E.I.) DE NEMOURS 600,000 31,500,000 DUKE ENERGY CORP 614,168 40,596,966 DUPONT FABROS TECHNOLOGY 395,800 9,558,570 E TRADE FINANCIAL CORP 2,700,000 34,182,000 E.ON SE 1,164,561 19,088,434 E2OPEN INC 160,000 2,800,000 EADS NV 346,066 18,472,418 EAST JAPAN RAILWAY CO 274,800 21,328,917 EAST WEST BANCORP INC 150,000 4,125,000 EASTERN TOBACCO 8,056 105,587 EASTMAN CHEMICAL CO 200,000 14,002,000 EATON VANCE CORP 125,000 4,698,750 EBAY INC 900,000 46,548,000 EBRO FOODS SA 106,060 2,175,462 ECHOSTAR CORP A 610,000 23,857,100 EDISON INTERNATIONAL 320,000 15,411,200 EDP ENERGIAS DE PORTUGAL SA 1,711,418 5,505,849 EDUCATION REALTY TRUST INC 265,000 2,710,950 EDWARDS LIFESCIENCES CORP 79,200 5,322,240 EISAI CO LTD 287,300 11,699,084 ELECTROLUX AB SER B 500,000 12,549,171 ELECTRONIC ARTS INC 430,000 9,877,100 ELI LILLY + CO 2,422,496 118,993,004 ELIZABETH ARDEN INC 50,000 2,253,500 EMAGIN CORPORATION 130,000 462,800 EMC CORP/MA 1,900,000 44,878,000 EMERITUS CORP 15,000 347,700 EMMIS COMMUNICATIONS CLASS A 1,420,000 3,038,800 EMPRESA NAC ELEC CHIL SP ADR 172,200 7,606,074 EMPRESAS ICA S.A.B 1,482,077 2,787,602 ENANTA PHARMACEUTICALS INC 112,500 1,992,375 ENBRIDGE INC 852,684 35,733,598 ENCANA CORP 1,211,247 20,425,692 ENEL SPA 3,870,432 12,124,657 ENERGEN CORP 70,000 3,658,200 ENERGIZER HOLDINGS INC 519,000 52,164,690 ENERGY FOCUS INC 668,600 274,126 ENERPLUS CORP 64,100 944,229 ENSCO PLC CL A 75,000 4,359,000

New Jersey Division of Pensions and Benefits 121 Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

ENTERCOM COMMUNICATIONS CL A 1,520,000 $14,348,800 ENTERGY CORP 194,000 13,517,920 ENTRAVISION COMMUNICATIONS A 2,080,000 12,792,000 ENTROPIC COMMUNICATIONS INC 500,000 2,135,000 ENZON PHARMACEUTICALS INC 60,000 120,000 EOG RESOURCES INC 214,000 28,179,520 EPR PROPERTIES 1,870,000 94,004,900 EQT CORP 120,000 9,524,400 EQUITY LIFESTYLE PROPERTIES 38,000 2,986,420 EQUITY ONE INC 135,802 3,073,199 EQUITY RESIDENTIAL 167,900 9,748,274 ERICSSON LM B SHS 2,042,576 22,984,635 ERSTE GROUP BANK AG 239,324 6,378,800 ESPIRITO SANTO FINL GROUP SA 1,991,971 13,575,500 ESSEX PROPERTY TRUST INC 104,050 16,535,626 ESSILOR INTERNATIONAL 624,960 66,401,797 ESTEE LAUDER COMPANIES CL A 280,000 18,415,600 EURASIA DRILLIN GDR 162,929 6,082,140 EUROCASH SA 15,189 267,638 EVA PRECISION INDUSTRIAL HLD 14,000,000 1,895,221 EVEREST RE GROUP LTD 195,000 25,010,700 EXA CORP 520,000 5,356,000 EXELON CORP 1,687,680 52,115,558 EXPERIAN PLC 1,081,326 18,745,744 EXPRESS INC 105,000 2,201,850 EXPRESS SCRIPTS HOLDING CO 820,000 50,585,800 EXXON MOBIL CORP 5,300,000 478,855,000 FACEBOOK INC A 2,300,000 57,178,000 FAIRCHILD SEMICONDUCTOR INTE 300,000 4,140,000 FAMILY DOLLAR STORES 43,000 2,679,330 FANUC CORP 206,525 29,897,111 FAR EASTONE TELECOM GDR 39,727 1,600,557 FARO TECHNOLOGIES INC 75,000 2,536,500 FAST RETAILING CO LTD 89,900 30,272,865 FEDERAL REALTY INVS TRUST 25,500 2,643,840 FEDERAL SIGNAL CORP 341,000 2,983,750 FEDERATION CENTRES 650,000 1,410,097 FEDEX CORP 860,000 84,778,800 FELCOR LODGING TRUST INC 120,000 709,200 FERROVIAL SA 382,316 6,102,585 FIAT INDUSTRIAL 552,298 6,148,849 FIAT SPA 918,183 6,409,092 FIBRA UNO ADMINISTRACION SA 1,061,600 3,546,042 FIFTH + PACIFIC COS INC 400,000 8,936,000 FINANCIAL ENGINES INC 107,087 4,882,096 FINISAR CORPORATION 275,000 4,661,250 FIRST CAPITAL REALTY INC 75,000 1,269,017 FIRST INDUSTRIAL REALTY TR 50,000 758,500 FIRST QUANTUM MINERALS LTD 565,917 8,368,458 FIRSTENERGY CORP 423,580 15,816,477 FISCHER 22,000 9,690,324

122 New Jersey Division of Pensions and Benefits Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

FIVE BELOW 1,000,000 $36,760,000 FLOWERS FOODS INC 303,750 6,697,688 FLUOR CORP 800,000 47,448,000 FMC CORP 295,000 18,012,700 FMC TECHNOLOGIES INC 199,832 11,126,646 FOMENTO ECONOMICO MEX SP ADR 173,500 17,903,465 FOOT LOCKER INC 365,000 12,822,450 FORD MOTOR CO 3,000,000 46,410,000 FOREST CITY ENTERPRISES CL A 319,480 5,721,887 FOREST LABORATORIES INC 779,400 31,955,400 FOREST OIL CORP 705,000 2,883,450 FORMFACTOR INC 650,000 4,387,500 FORTIS INC 369,700 11,280,765 FORTUM OYJ 464,108 8,687,094 FOSSIL GROUP INC 42,000 4,339,020 FRANCESCAS HOLDINGS CORP 40,100 1,114,379 FRASER AND NEAVE LTD 280,655 1,898,620 FREEPORT MCMORAN COPPER 150,000 4,141,500 FRESENIUS MEDICAL CARE AG 132,106 9,363,776 FRESENIUS SE + CO KGAA 80,050 9,854,853 FUBON FINANCIAL HOL GDR 437,965 5,868,731 FUGRO NV CVA 119,559 6,472,771 FUJI HEAVY INDUSTRIES LTD 1,523,000 37,486,636 FUJIFILM HOLDINGS CORP 443,300 9,750,949 FURIEX PHARMACEUTICALS 22,916 780,748 G III APPAREL GROUP LTD 314,236 15,121,036 GALAXY ENTERTAINMENT GROUP 1,782,000 8,695,933 GALP ENERGIA SGPS SA 700,000 10,350,049 GAMESTOP CORP CLASS A 70,000 2,942,100 GAMUDA BHD 5,210,700 7,817,287 GAP INC/THE 200,000 8,346,000 GARTNER INC 100,000 5,699,000 GAZIT GLOBE LTD 112,500 1,490,625 GDF SUEZ 829,177 16,215,577 GEA GROUP AG 160,955 5,696,985 GEBERIT AG 56,441 13,976,776 GENERAC HOLDINGS INC 1,000,000 37,010,000 GENERAL DYNAMICS CORP 750,000 58,747,500 GENERAL ELECTRIC CO 8,500,000 197,115,000 GENERAL GROWTH PROPERTIES 482,825 9,593,733 GENERAL MILLS INC 511,720 24,833,772 GENERAL MOTORS CO 1,401,828 46,694,891 GENESCO INC 60,500 4,052,895 GENESEE + WYOMING INC CL A 180,000 15,271,200 GENTING SINGAPORE PLC 4,243,000 4,415,958 GENUINE PARTS CO 150,000 11,710,500 GERRESHEIMER AG 105,000 6,073,545 GIGAMON INC 10,000 275,600 GILEAD SCIENCES INC 2,460,000 125,976,600 GIVAUDAN 56,115 72,297,400 GLADSTONE COMMERCIAL CORP 50,000 932,000

New Jersey Division of Pensions and Benefits 123 Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

GLADSTONE LAND CORP 90,000 $1,523,700 GLAXOSMITHKLINE PLC 4,761,385 119,011,877 GLENCORE XSTRATA PLC 5,865,436 24,210,761 GLIMCHER REALTY TRUST 210,000 2,293,200 GLOBAL LOGISTIC PROPERTIES 3,843,000 8,332,611 GLOBAL MEDIACOM TBK PT 10,745,000 2,327,632 GLP J REIT 10,000 9,764,937 GMAC CAPITAL TRUST 40,000 1,042,000 GNC HOLDINGS INC CL A 110,750 4,896,258 GOL LINHAS AEREAS INTEL ADR 1,106,449 3,706,604 GOLDCORP INC 615,003 15,227,147 GOLDEN AGRI RESOURCES LTD 4,370,000 1,929,512 GOLDMAN SACHS GROUP INC 406,500 61,483,125 GOODMAN GROUP 2,499,362 11,164,423 GOODYEAR TIRE + RUBBER CO 775,000 11,849,750 GOOGLE INC CL A 364,000 320,454,680 GPT GROUP 2,624,471 9,224,871 GRAMERCY PROPERTY TRUST INC 55,000 247,500 GRASIM INDUSTRIES 29,900 1,388,658 GREAT PLAINS ENERGY INC 100,000 2,254,000 GREAT PORTLAND ESTATES PLC 125,000 1,007,658 GREATBATCH INC 140,000 4,590,600 GREIF INC CL B 62,000 3,475,720 GROUP 1 AUTOMOTIVE INC 111,000 7,140,630 GROUPE BRUXELLES LAMBERT SA 78,041 5,864,335 GROUPE FNAC 55,995 145,788 GRUPO AEROPORTUARIO SUR ADR 18,700 2,080,188 GRUPO FIN SANTANDER ADR B 744,522 10,579,658 GRUPO FINANCIERO BANORTE O 690,600 4,103,566 GRUPO MEXICO SAB DE CV 3,608,224 10,387,683 GRUPO TELEVISA SA SPON ADR 375,385 9,324,563 GS RETAIL CO LTD 113,760 2,918,583 GUDANG GARAM TBK PT 1,442,500 7,354,207 H+R REAL ESTATE INVESTMENT REIT 95,592 1,997,107 HACI OMER SABANCI HOLDING 2,318,198 12,195,035 HAITONG SECURITIES CO LTD 3,144,000 3,810,246 HALLIBURTON CO 1,808,948 75,469,311 HAMMERSON PLC 304,924 2,253,657 HANESBRANDS INC 152,000 7,815,840 HANG LUNG PROPERTIES LTD 1,353,598 4,720,626 HANG SENG BANK LTD 275,000 4,066,668 HANWHA LIFE INSURANCE CO LTD 2,677,682 15,427,650 HARMONIC INC 200,000 1,270,000 HARRIS CORP 100,000 4,925,000 HARSCO CORP 380,000 8,812,200 HARTFORD FINANCIAL SVCS GRP 140,000 4,328,800 HARUM ENERGY TBK PT 8,351,500 2,545,419 HASBRO INC 220,000 9,862,600 HAUPPAUGE DIGITAL INC 300,000 207,000 HAWAIIAN ELECTRIC INDS 100,000 2,531,000 HCP INC 271,000 12,314,240

124 New Jersey Division of Pensions and Benefits Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

HDFC BANK LTD ADR 500,280 $18,130,147 HEALTH CARE REIT INC 139,500 9,350,685 HEALTH MGMT ASSOCIATES INC A 270,000 4,244,400 HEALTH NET INC 105,000 3,341,100 HEALTHCARE SERVICES GROUP 50,000 1,226,000 HEALTHCARE TRUST OF AME CL A 80,000 898,400 HEARTWARE INTERNATIONAL INC 15,000 1,426,650 HECLA MINING CO 1,750,000 5,215,000 HEICO CORP CLASS A 195,312 7,208,966 HEIDELBERGCEMENT AG 489,546 32,879,480 HEIDRICK + STRUGGLES INTL 97,000 1,621,840 HEINEKEN HOLDING NV 126,604 7,093,622 HEINEKEN NV 139,125 8,852,193 HELIX ENERGY SOLUTIONS GROUP 100,000 2,304,000 HELMERICH + PAYNE 94,600 5,907,770 HENDERSON LAND DEVELOPMENT 1,584,669 9,490,015 HENKEL AG + CO KGAA VORZUG 116,489 10,939,960 HENNES + MAURITZ AB 683,001 22,303,065 HENRY SCHEIN INC 115,000 11,011,250 HERSHA HOSPITALITY TRUST 1,190,000 6,711,600 HESS CORP 1,015,000 67,487,350 HEWLETT PACKARD CO 2,700,000 66,960,000 HEXAGON AB 250,700 6,659,877 HEXCEL CORP 300,000 10,215,000 HIBBETT SPORTS INC 25,000 1,387,500 HILLSHIRE BRANDS CO 1,121,200 37,089,296 HISAMITSU PHARMACEUTICAL CO 163,800 8,310,787 HITACHI LTD 3,575,279 22,926,992 HOLCIM LTD 419,225 29,177,156 HOLLYFRONTIER CORP 1,095,000 46,844,100 HOLOGIC INC 161,200 3,111,160 HOME DEPOT INC 2,069,000 160,285,430 HOME PROPERTIES INC 15,500 1,013,235 HON HAI PRECISION GDR 3,203,687 15,601,956 HONDA MOTOR CO LTD 1,622,333 60,183,189 HONEYWELL INTERNATIONAL INC 700,000 55,538,000 HONG KONG + CHINA GAS 5,359,484 13,100,984 HONG KONG EXCHANGES + CLEAR 865,813 13,071,445 HORIZON LINES INC CL A 225,008 303,761 HOSPIRA INC 226,100 8,661,891 HOST HOTELS + RESORTS INC 50,000 843,500 HOTEL SHILLA CO LTD 78,029 4,167,741 HOWARD HUGHES CORP/THE 47,204 5,291,096 HOYA CORP 1,247,768 25,737,924 HSBC HOLDINGS PLC 11,092,504 114,739,715 HUABAO INTERNATIONAL HOLDING 11,804,700 5,220,255 HUANENG POWER INTL INC H 3,058,000 3,039,726 HUDSON PACIFIC PROPERTIES IN 220,000 4,681,600 HUFVUDSTADEN AB A SHS 190,000 2,257,665 HUNTSMAN CORP 1,200,000 19,872,000 HUTCHISON PORT HOLDINGS TR U 7,000,000 5,145,000

New Jersey Division of Pensions and Benefits 125 Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

HUTCHISON WHAMPOA LTD 2,123,000 $22,321,150 HYPERMARCAS SA 737,100 4,848,266 HYUNDAI ENGINEERING + CONST 149,578 7,321,405 HYUNDAI GLOVIS CO LTD 33,134 5,613,965 HYUNDAI MOBIS CO LTD 101,475 24,256,972 HYUNDAI MOTOR CO 91,299 18,027,166 IAC/INTERACTIVECORP 500,000 23,780,000 IAMGOLD CORP 211,052 884,260 IBERDROLA SA 3,819,834 20,138,885 ICICI BANK LTD SPON ADR 361,526 13,828,370 ICONIX BRAND GROUP INC 200,000 5,882,000 IDACORP INC 40,000 1,910,400 IDEMITSU KOSAN CO LTD 29,900 2,296,643 IGM FINANCIAL INC 123,826 5,292,492 IHH HEALTHCARE BHD 4,461,000 5,577,132 IJM CORP BHD 4,532,500 8,105,278 ILUKA RESOURCES LTD 320,535 2,931,084 IMMOFINANZ AG 1,377,090 5,137,327 IMPERIAL HOLDINGS LTD 434,235 9,179,684 IMPERIAL TOBACCO GROUP PLC 588,054 20,335,359 INCYTE CORP 175,000 3,850,000 INDITEX 161,486 19,907,623 INDOSAT TBK PT 16,337,500 8,642,003 INDUSTRIAL + INFRASTRUCTURE 50 485,730 INFINEON TECHNOLOGIES AG 1,235,229 10,324,082 INFORMATICA CORP 560,000 19,588,800 INFOSYS LTD SP ADR 376,955 15,526,776 ING GROEP NV CVA 4,015,626 36,537,958 INGERSOLL RAND PLC 150,000 8,328,000 INGREDION INC 300,000 19,686,000 INPEX CORP 2,021 8,422,953 INSURANCE AUSTRALIA GROUP 1,486,265 7,400,864 INTACT FINANCIAL CORP 149,064 8,372,001 INTEGRATED DEVICE TECH INC 650,000 5,161,000 INTEGRATED SILICON SOLUTION 29,870 327,375 INTEGRYS ENERGY GROUP INC 27,500 1,609,575 INTEL CORP 3,200,000 77,504,000 INTERCONTINENTAL HOTELS GROU 401,675 11,014,709 INTERDIGITAL INC 50,000 2,232,500 INTERMUNE INC 190,000 1,827,800 INTERNAP NETWORK SERVICES 400,000 3,308,000 INTERTEK GROUP PLC 267,205 11,846,040 INTESA SANPAOLO 8,046,233 12,874,893 INTL BUSINESS MACHINES CORP 1,120,000 214,043,200 INTL CONTAINER TERM SVCS INC 3,355,730 6,758,067 INTL GAME TECHNOLOGY 125,000 2,088,750 INVENSENSE INC 200,000 3,076,000 INVESTA OFFICE FUND 250,000 665,917 INVESTMENT AB KINNEVIK B SHS 323,325 8,234,681 INVESTOR AB B SHS 262,979 7,025,034 ION GEOPHYSICAL CORP 275,000 1,655,500

126 New Jersey Division of Pensions and Benefits Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

IPG PHOTONICS CORP 300,000 $18,219,000 IROBOT CORP 20,000 795,400 IRON MOUNTAIN INC 83,108 2,211,504 ISHARES CORE MSCI EMERGING MAR 2,325,000 107,089,500 ISHARES GOLD TRUST 10,656,400 127,770,236 ISHARES IBOXX HIGH YIELD COR 80,000 7,268,800 ISHARES INTERNATIONAL INFLATIO 100,000 4,539,000 ISHARES JP MORGAN USD EMERGING 90,000 9,857,700 ISHARES MSCI BRAZIL CAPPED ETF 300,000 13,158,000 ISHARES MSCI EAFE ETF 2,200,000 126,236,000 ISHARES MSCI EMERGING MARKETS 2,550,000 145,630,500 ISHARES MSCI EMERGING MARKETS 22,954,600 885,358,922 ISHARES MSCI INDIA INDEX ETF 4,002,761 23,095,931 ISHARES MSCI TAIWAN ETF 754,459 10,034,305 ISHARES S+P BSE SENSEX INDIA I 6,442,600 11,960,966 ISHARES S+P/TSX 60 INDEX FUND 1,200,000 19,860,657 ISIS PHARMACEUTICALS INC 60,000 1,612,200 ISUZU MOTORS LTD 933,000 6,377,480 ITAU UNIBANCO HLDNG PREF ADR 460,310 5,947,205 ITC LTD GDR 2,187,298 11,918,587 ITOCHU CORP 1,181,000 13,612,976 IXIA 325,000 5,980,000 J + J SNACK FOODS CORP 405,000 31,509,000 J.C. PENNEY CO INC 160,000 2,732,800 JABIL CIRCUIT INC 100,000 2,038,000 JAPAN HOTEL REIT INVESTMENT 5,000 1,887,552 JAPAN REAL ESTATE INVESTMENT 920 10,252,580 JAPAN TOBACCO INC 752,500 26,551,694 JARDEN CORP 397,500 17,390,625 JARDINE CYCLE + CARRIAGE LTD 78,897 2,644,415 JARDINE MATHESON HLDGS LTD 22,181 1,341,951 JAVELIN MORTGAGE INVESTMENT 40,000 563,600 JDS UNIPHASE CORP 325,000 4,673,500 JERONIMO MARTINS 413,343 8,698,621 JFE HOLDINGS INC 430,400 9,432,534 JGC CORP 226,000 8,122,213 JM SMUCKER CO/THE 67,056 6,916,826 JOHNSON + JOHNSON 3,250,000 279,045,000 JOHNSON CONTROLS INC 300,000 10,737,000 JONES GROUP INC/THE 603,502 8,298,153 JPMORGAN CHASE + CO 6,105,000 322,282,950 JSL SA 124,100 816,828 JSR CORP 700,000 14,136,004 JULIUS BAER GROUP LTD 278,251 10,848,892 JUNIPER NETWORKS INC 1,000,000 19,310,000 JX HOLDINGS INC 2,337,549 11,318,881 K S AG 80,870 2,985,900 KABEL DEUTSCHLAND HOLDING AG 93,468 10,251,690 KALBE FARMA TBK PT 48,994,500 7,108,522 KANSAI ELECTRIC POWER CO INC 534,100 7,307,011 KANSAS CITY SOUTHERN 700,000 74,172,000

New Jersey Division of Pensions and Benefits 127 Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

KAO CORP 369,900 $12,567,700 KASIKORNBANK PCL FOREIGN 761,000 4,686,474 KAWASAKI HEAVY INDUSTRIES 2,276,000 6,988,272 KAYNE ANDERSON MLP INVST 40,000 988,400 KB FINANCIAL GROUP INC 678,115 20,306,933 KBC GROEP NV 191,113 7,105,999 KBR INC 650,000 21,125,000 KDDI CORP 381,800 19,832,768 KEIKYU CORP 1,123,000 9,632,013 KEIO CORP 724,000 4,970,735 KELLOGG CO 305,000 19,590,150 KEPPEL CORP LTD 2,045,000 16,768,903 KEPPEL LAND LTD 164,000 433,178 KEPPEL REIT 7,488,999 7,646,656 KERING 55,995 11,365,387 KERRY GROUP PLC A 192,043 10,584,182 KEYENCE CORP 29,100 9,271,808 KEYW HOLDING CORP/THE 50,000 662,500 KFORCE INC 285,000 4,161,000 KID BRANDS INC 570,000 877,800 KILLAM PROPERTIES INC 128,745 1,305,817 KILROY REALTY CORP 84,000 4,452,840 KIMBERLY CLARK CORP 275,000 26,713,500 KIMBERLY CLARK DE MEXICO A 4,478,100 14,610,889 KIMCO REALTY CORP 428,000 9,223,040 KINDER MORGAN INC 1,637,735 49,569,881 KINDRED HEALTHCARE INC 500,000 6,565,000 KINGFISHER PLC 2,722,376 14,162,569 KINROSS GOLD CORP 1,427,388 7,292,878 KINTETSU CORP 2,273,000 9,976,625 KIRBY CORP 200,000 15,908,000 KIRIN HOLDINGS CO LTD 673,198 10,531,532 KLA TENCOR CORPORATION 100,000 5,573,000 KOBE STEEL LTD 1,272,000 1,575,034 KOC HOLDING AS 3,996,733 19,181,501 KOHLS CORP 38,000 1,919,380 KOMATSU LTD 957,639 22,105,665 KOMERCNI BANKA AS 17,804 3,305,443 KONE OYJ B 132,474 10,512,580 KONECRANES OYJ 163,817 4,665,458 KONINKLIJKE DSM NV 98,591 6,415,361 KONINKLIJKE KPN NV 3,113,869 6,463,954 KONINKLIJKE PHILIPS NV 1,227,413 33,416,739 KOPPERS HOLDINGS INC 510,000 19,471,800 KORN/FERRY INTERNATIONAL 65,600 1,229,344 KRAFT FOODS GROUP INC 664,387 37,119,302 KROGER CO 551,000 19,031,540 KT CORP 50,210 1,573,940 KT+G CORP 301,997 19,621,013 KUBOTA CORP 1,257,000 18,323,209 KUEHNE + NAGEL INTL AG 50,000 5,480,104

128 New Jersey Division of Pensions and Benefits Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

KYOCERA CORP 147,459 $14,993,063 KYOWA HAKKO KIRIN CO LTD 686,000 7,748,447 L 3 COMMUNICATIONS HOLDINGS 760,000 65,162,400 L BRANDS INC 65,000 3,201,250 L OREAL 163,699 26,863,982 L OREAL PRIME DE FIDELITE 752,177 123,436,731 LA Z BOY INC 135,000 2,736,450 LAFARGE SA 129,057 7,924,729 LAM RESEARCH CORP 300,000 13,302,000 LAND + HOUSES PUB NVDR 23,622,700 8,606,691 LAND SECURITIES GROUP PLC 458,142 6,142,599 LAREDO PETROLEUM HOLDINGS IN 80,000 1,652,000 LARSEN + TOUB UNSP GDR 209,102 4,915,988 LAS VEGAS SANDS CORP 594,000 31,440,420 LASALLE HOTEL PROPERTIES 78,204 1,931,639 LEAPFROG ENTERPRISES INC 80,000 787,200 LEG IMMOBILIEN AG 26,500 1,377,840 LEGAL + GENERAL GROUP PLC 5,873,628 15,269,227 LEGG MASON INC 1,180,000 36,591,800 LEGRAND SA 288,685 13,373,802 LENNAR CORP B SHS 50,000 1,417,500 LENNAR CORP A 262,000 9,442,480 LENOVO GROUP LTD 5,684,000 5,181,030 LEXINGTON REALTY TRUST 50,000 584,000 LG CHEM LTD 23,574 5,222,383 LG DISPLAY CO LTD 87,760 2,109,375 LG ELECTRONICS INC 49,940 3,192,172 LG HOUSEHOLD + HEALTH CARE 9,847 4,811,196 LG UPLUS CORP 505,410 5,288,428 LI + FUNG LTD 10,682,926 14,654,616 LIFE HEALTHCARE GROUP HOLDIN 2,116,920 7,996,666 LIFE TECHNOLOGIES CORP 132,608 9,814,318 LIFEPOINT HOSPITALS INC 271,164 13,243,650 LIGAND PHARMACEUTICALS CL B 32,331 1,209,826 LIMELIGHT NETWORKS INC 280,000 630,000 LIMONEIRA CO 185,000 3,835,050 LINCOLN NATIONAL CORP 1,450,000 52,881,500 LINDAB INTERNATIONAL AB 371,569 2,937,011 LINDE AG 211,273 39,367,213 LINDT + SPRUENGLI AG 142 6,177,371 LINK REIT 1,561,000 7,687,920 LIONS GATE ENTERTAINMENT COR 140,000 3,845,800 LIPOSCIENCE INC 45,000 314,550 LIPPO KARAWACI TBK PT 56,786,000 8,696,697 LITE ON TECHNOLOGY CORP GDR 178,041 2,492,574 LIVEPERSON INC 520,000 4,656,600 LLOYDS BANKING GROUP PLC 28,192,465 27,006,914 LMI AEROSPACE INC 80,000 1,499,200 LOGITECH INTERNATIONAL 3,250,000 22,361,676 LOJACK CORPORATION 460,000 1,449,000 LONE PINE RESOURCES INC 251,118 82,869

New Jersey Division of Pensions and Benefits 129 Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

LOTTE CHEMICAL CORP 21,773 $2,726,272 LOUISIANA PACIFIC CORP 700,000 10,353,000 LOWE S COS INC 965,000 39,468,500 LSI CORP 750,000 5,355,000 LT GROUP INC 7,007,400 3,665,908 LUKOIL OAO SPON ADR 527,771 30,339,535 LVMH MOET HENNESSY LOUIS VUI 172,112 27,853,096 LYONDELLBASELL INDU CL A 800,000 53,008,000 MACERICH CO/THE 10,000 609,700 MACQUARIE GROUP LTD 185,625 7,114,211 MACQUARIE INFRASTRUCTURE CO 75,000 4,008,750 MACQUARIE MEXICO REAL ESTATE 1,693,146 3,639,539 MACY S INC 385,000 18,480,000 MAGNA INTERNATIONAL INC 194,476 13,800,155 MAGNIT OJSC SPON GDR 298,559 17,077,575 MAIL.RU GROUP GDR 388,878 11,145,243 MAKITA CORP 131,700 7,106,377 MANHATTAN ASSOCIATES INC 50,000 3,858,000 MANPOWERGROUP INC 50,000 2,740,000 MANULIFE FINANCIAL CORP 1,223,800 19,523,725 MARATHON OIL CORP 411,644 14,234,650 MARATHON PETROLEUM CORP 640,000 45,478,400 MARIN SOFTWARE INC 40,000 409,600 MARKET VECTORS AGRIBUSINESS ETF 156,862 8,029,766 MARKET VECTORS GOLD MINERS ETF 590,000 14,401,900 MARKS + SPENCER GROUP PLC 1,634,991 10,680,462 MARRIOTT INTERNATIONAL CL A 218,705 8,829,121 MARSH + MCLENNAN COS 260,000 10,379,200 MARTIN MARIETTA MATERIALS 125,000 12,302,500 MARUBENI CORP 1,814,771 12,112,480 MASTEC INC 1,050,000 34,545,000 MASTERCARD INC CLASS A 75,000 43,087,500 MATAHARI DEPARTMENT STORE TB 5,556,500 6,494,247 MATTEL INC 1,260,000 57,090,600 MATTRESS FIRM HOLDING CORP 20,000 806,000 MCCORMICK + CO NON VTG SHRS 245,000 17,238,200 MCDERMOTT INTL INC 5,500,000 44,990,000 MCDONALD S CORP 814,913 80,676,387 MCKESSON CORP 681,250 78,003,125 MDC HOLDINGS INC 90,000 2,925,900 MDU RESOURCES GROUP INC 175,000 4,534,250 MEAD JOHNSON NUTRITION CO 149,026 11,807,330 MEADWESTVACO CORP 250,000 8,527,500 MEDIATEK INC 30,420 353,721 MEDIOBANCA SPA 1,004,322 5,221,869 MEDIVIR AB B SHS 425,000 4,124,410 MEDTRONIC INC 810,000 41,690,700 MEGAFON GDR 101,222 3,163,188 MEGAFON GDR 262,451 8,201,594 MEGAFON OAO 144A GDR 491,200 15,286,144 MEIJI HOLDINGS CO LTD 187,900 9,013,374

130 New Jersey Division of Pensions and Benefits Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

MELIA HOTELS INTERNATIONAL 1,250,000 $9,472,651 MENTOR GRAPHICS CORP 260,000 5,083,000 MERCANTILE BANK CORP 52,339 940,532 MERCK + CO. INC. 6,570,000 305,176,500 MERIDIAN BIOSCIENCE INC 50,000 1,075,000 METLIFE INC 2,314,248 105,899,988 METRO AG 35,558 1,124,071 METRO INC 158,100 10,562,480 METRO PACIFIC INVESTMENTS CO 78,346,100 9,575,634 METROPOLITAN BANK + TRUST 963,948 2,476,811 MEXICHEM SAB DE CV 1,446,207 5,965,423 MFA FINANCIAL INC 100,000 845,000 MICHAEL BAKER CORP 480,000 13,012,800 MICHELIN (CGDE) 114,509 10,225,613 MICROCHIP TECHNOLOGY INC 300,000 11,175,000 MICRON TECHNOLOGY INC 1,800,000 25,794,000 MICROSEMI CORP 200,000 4,550,000 MICROSOFT CORP 11,650,000 402,274,500 MICROSTRATEGY INC CL A 35,000 3,043,600 MID AMERICA APARTMENT COMM 60,450 4,096,697 MIDDLESEX WATER CO 170,268 3,391,739 MIGROS TICARET A.S 282,302 2,889,665 MILLICOM INTL CELLULAR SDR 28,026 2,005,995 MILLS ESTRUTURAS E SERVICOS 82,400 1,126,866 MINE SAFETY APPLIANCES CO 170,000 7,913,500 MINOR INTERNATIONAL PCL FOR 4,786,000 3,826,948 MIRVAC GROUP 500,000 734,569 MITSUBISHI CHEMICAL HOLDINGS 1,909,500 8,957,840 MITSUBISHI CORP 1,003,624 17,165,724 MITSUBISHI ELECTRIC CORP 1,532,470 14,331,954 MITSUBISHI ESTATE CO LTD 1,522,000 40,465,113 MITSUBISHI HEAVY INDUSTRIES 2,739,000 15,192,923 MITSUBISHI MATERIALS CORP 1,246,000 4,377,651 MITSUBISHI TANABE PHARMA 87,000 1,125,434 MITSUBISHI UFJ FINANCIAL GRO 8,476,200 52,221,618 MITSUI FUDOSAN CO LTD 2,106,421 61,855,641 MITSUI OSK LINES LTD 1,200,000 4,675,089 MIZUHO FINANCIAL GROUP INC 20,319,520 42,138,432 MMC NORILSK NICKEL JSC ADR 269,079 3,877,428 MOBILE TELESYSTEMS SP ADR 1,581,800 29,959,292 MODEL N INC 130,000 3,036,800 MOHAWK INDUSTRIES INC 9,000 1,012,410 MOLESKINE SPA 5,500,000 12,475,303 MOLEX INC CL A 100,000 2,486,000 MOLSON COORS BREWING CO B 220,000 10,529,200 MOLYCORP INC 225,000 1,395,000 MONDELEZ INTERNATIONAL INC 1,993,163 56,864,940 MONDI PLC 1,053,300 13,112,138 MONEYGRAM INTERNATIONAL INC 50,000 1,132,500 MONRO MUFFLER BRAKE INC 10,000 480,500 MONSANTO CO 541,500 53,500,200

New Jersey Division of Pensions and Benefits 131 Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

MONSTER BEVERAGE CORP 170,000 $10,330,900 MORGAN STANLEY 850,000 20,765,500 MORGAN STANLEY INDIA INVESTMENT 497,869 7,672,161 MOSAIC CO/THE 1,040,000 55,962,400 MOVE INC 540,000 6,922,800 MS+AD INSURANCE GROUP HOLDIN 278,800 7,078,407 MSC INDUSTRIAL DIRECT CO A 50,000 3,873,000 MSCI INC 50,000 1,663,500 MTR CORP 944,889 3,459,726 MUENCHENER RUECKVER AG 128,466 23,611,881 MURATA MANUFACTURING CO LTD 136,538 10,377,630 MURPHY OIL CORP 482,000 29,348,980 MURRAY + ROBERTS HOLDINGS 92,907 235,187 MWI VETERINARY SUPPLY INC 60,000 7,394,400 MYLAN INC 1,433,255 44,473,903 NABORS INDUSTRIES LTD 1,475,000 22,582,250 NASPERS LTD N SHS 331,506 24,377,406 NATIONAL AUSTRALIA BANK LTD 1,460,961 39,690,797 NATIONAL BANK OF CANADA 124,400 8,848,738 NATIONAL CINEMEDIA INC 880,000 14,863,200 NATIONAL FUEL GAS CO 102,500 5,939,875 NATIONAL GRID PLC 2,194,510 24,829,970 NATIONAL OILWELL VARCO INC 320,000 22,048,000 NATIONAL RETAIL PROPERTIES 42,500 1,462,000 NATURA COSMETICOS SA 704,909 15,221,095 NAVISTAR INTERNATIONAL CORP 840,000 23,318,400 NB PVT EQUITY PTRS LTD 2,475,000 22,497,750 NCSOFT CORPORATION 68,332 9,692,907 NEDBANK GROUP LTD 630,572 11,149,599 NEKTAR THERAPEUTICS 105,000 1,212,750 NESTLE SA 2,016,908 132,058,818 NETAPP INC 850,000 32,113,000 NETEASE INC ADR 261,600 16,525,272 NETSCOUT SYSTEMS INC 80,000 1,867,200 NEW GOLD INC 773,600 4,993,806 NEW JERSEY RESOURCES CORP 45,000 1,868,850 NEW YORK COMMUNITY BANCORP 296,331 4,148,634 NEWCREST MINING LTD 884,737 7,993,163 NEWELL RUBBERMAID INC 800,000 21,000,000 NEWFIELD EXPLORATION CO 522,000 12,470,580 NEWMONT MINING CORP 150,000 4,492,500 NEWPARK RESOURCES INC 1,140,000 12,528,600 NEXT PLC 122,811 8,490,072 NEXTERA ENERGY INC 850,000 69,258,000 NGK INSULATORS LTD 106,000 1,312,528 NHN CORP 40,937 10,413,028 NIC INC 500,000 8,265,000 NIDEC CORP 133,190 9,278,450 NIKE INC CL B 447,000 28,464,960 NIKON CORP 191,800 4,467,964 NINTENDO CO LTD 98,400 11,589,873

132 New Jersey Division of Pensions and Benefits Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

NIPPON BUILDING FUND INC 597 $6,899,441 NIPPON PROLOGIS REIT INC 330 2,866,965 NIPPON STEEL + SUMITOMO META 4,268,539 11,516,268 NIPPON TELEGRAPH + TELEPHONE 304,556 15,758,976 NIPPON YUSEN 1,678,000 4,442,684 NISOURCE INC 266,000 7,618,240 NISSAN MOTOR CO LTD 4,508,656 45,615,335 NITORI HOLDINGS CO LTD 350,000 28,187,447 NITTO DENKO CORP 116,200 7,463,190 NKSJ HOLDINGS INC 260,400 6,199,688 NOBEL BIOCARE HOLDING AG 350,000 4,254,082 NOBLE CORP 50,000 1,879,000 NOBLE ENERGY INC 328,000 19,693,120 NOBLE GROUP LTD 2,519,631 1,927,022 NOKIA OYJ 3,263,742 12,073,792 NOKIAN RENKAAT OYJ 400,000 16,279,312 NOMURA HOLDINGS INC 2,578,600 18,975,755 NORDEA BANK AB 1,558,433 17,317,333 NORDSTROM INC 180,000 10,789,200 NORFOLK SOUTHERN CORP 650,000 47,222,500 NORTHEAST UTILITIES 125,500 5,273,510 NORTHERN TRUST CORP 203,000 11,753,700 NORTHSTAR REALTY FIN 20,000 507,000 NORTHSTAR REALTY FINANCE COR 313,128 2,849,465 NOVARTIS AG 1,555,056 110,282,997 NOVATEK OAO SPONS GDR 24,446 2,921,297 NOVATEL WIRELESS INC 30,000 118,500 NOVO NORDISK A/S B 244,043 37,979,209 NOVOZYMES A/S B SHARES 175,957 5,623,853 NRG ENERGY INC 439,720 11,740,524 NSK LTD 215,000 2,054,009 NTN BUZZTIME INC 500,000 205,000 NTT DOCOMO INC 10,483 16,262,448 NUANCE COMMUNICATIONS INC 1,400,000 25,732,000 NUSTAR LOGISTICS LP 20,000 523,126 NUTRECO NV 200,000 8,488,015 NUVERRA ENVIRONMENTAL SOLUTI 2,800,000 8,120,000 NV ENERGY INC 180,000 4,222,800 NVE CORP 20,000 936,400 NVIDIA CORP 1,000,000 14,030,000 NVR INC 30,000 27,660,000 NXSTAGE MEDICAL INC 76,700 1,095,276 O REILLY AUTOMOTIVE INC 38,000 4,279,560 OCCIDENTAL PETROLEUM CORP 640,000 57,107,200 OCEANEERING INTL INC 106,000 7,653,200 OCLARO INC 350,000 413,000 ODAKYU ELECTRIC RAILWAY CO 719,000 7,006,513 OGE ENERGY CORP 25,000 1,705,000 OHL MEXICO SAB DE CV 541,500 1,280,392 OIL + GAS DEVELOPMENT CO LTD 1,912,349 4,382,066 OLD DOMINION FREIGHT LINE 25,000 1,040,500

New Jersey Division of Pensions and Benefits 133 Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

OLD MUTUAL PLC 4,812,645 $13,189,908 OMNICARE INC 95,000 4,532,450 OMNICOM GROUP 100,000 6,287,000 OMRON CORP 220,000 6,537,877 OMTHERA PHARMACEUTICALS INC 80,000 1,064,000 OMV AG 152,869 6,895,121 ON SEMICONDUCTOR CORPORATION 250,000 2,020,000 ONEOK INC 993,000 41,020,830 ONEX CORPORATION 594,703 26,901,016 ONO PHARMACEUTICAL CO LTD 293,001 19,850,976 ONYX PHARMACEUTICALS INC 40,000 3,472,800 OPEN TEXT CORP 91,900 6,263,434 ORACLE CORP 3,600,000 110,592,000 ORANGE S.A. 1,501,998 14,189,832 ORASCOM CONSTRUCTION INDS 273,782 9,360,935 ORICA LTD 193,016 3,648,385 ORIENTAL LAND CO LTD 72,500 11,195,953 ORIFLAME COSMETICS SA SDR 222,276 6,991,562 ORIGIN ENERGY LTD 974,492 11,212,459 ORION CORP 3,655 3,049,967 ORIX CORP 826,800 11,278,140 ORKLA ASA 670,831 5,466,799 ORMAT TECHNOLOGIES INC 140,000 3,292,800 ORPEA 100,000 4,618,364 OSAKA GAS CO LTD 1,128,000 4,757,960 OSI SYSTEMS INC 100,000 6,442,000 OTP BANK PLC 1,000,298 20,991,149 OTSUKA HOLDINGS CO LTD 377,100 12,432,702 OVERSEA CHINESE BANKING CORP 2,208,800 17,415,438 OXFORD INDUSTRIES INC 42,000 2,620,800 P G + E CORP 413,000 18,886,490 PACER INTERNATIONAL INC 1,150,000 7,256,500 PACIFIC RUBIALES ENERGY CORP 193,100 3,380,783 PAKISTAN PETROLEUM LTD 2,636,876 5,589,117 PALO ALTO NETWORKS INC 600,000 25,296,000 PANASONIC CORP 1,738,200 13,946,196 PANTRY INC 120,000 1,461,600 PARADISE CO LTD 327,926 6,647,246 PARKE BANCORP INC 103,857 790,348 PARKWAY PROPERTIES INC 131,500 2,203,940 PATTERSON UTI ENERGY INC 121,000 2,341,955 PCM INC 190,000 1,824,000 PDG REALTY SA 2,656,400 2,537,292 PDL BIOPHARMA INC 245,000 1,891,400 PEABODY ENERGY CORP 2,925,000 42,822,000 PEARSON PLC 823,983 14,634,401 PEBBLEBROOK HOTEL TRUST 482,934 12,483,844 PEGATRON CORP GDR 493,991 4,060,606 PEMBINA PIPELINE CORP 275,600 8,406,852 PENN NATIONAL GAMING INC 20,000 1,057,200 PENN VIRGINIA CORP 720,000 3,384,000

134 New Jersey Division of Pensions and Benefits Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

PENN WEST PETROLEUM LTD 747,300 $7,862,960 PENNYMAC MORTGAGE INVESTMENT 40,000 842,000 PENSKE AUTOMOTIVE GROUP INC 116,000 3,542,640 PEPCO HOLDINGS INC 270,000 5,443,200 PEPSICO INC 1,299,600 106,294,284 PERKINELMER INC 100,000 3,250,000 PERNOD RICARD SA 169,878 18,811,297 PERRIGO CO 280,000 33,880,000 PERUSAHAAN GAS NEGARA PERSER 3,634,000 2,105,340 PETSMART INC 30,000 2,009,700 PFIZER INC W/D 9,463,112 265,061,767 PHARMACYCLICS INC 50,000 3,973,500 PHARMERICA CORP 30,000 415,800 PHILIP MORRIS INTERNATIONAL 2,786,000 241,323,320 PHILIPPINE LONG DIST SP ADR 408,500 27,720,810 PHILIPPINE LONG DISTANCE TEL 97,710 6,649,708 PHILLIPS 66 1,010,000 59,499,100 PHOTRONICS INC 250,000 2,015,000 PICK N PAY STORES LTD 1,809,459 7,221,650 PIEDMONT NATURAL GAS CO 35,000 1,180,900 PIER 1 IMPORTS INC 340,000 7,986,600 PIMCO 0 5 YEAR HIGH YIELD CORP 100,000 10,267,000 PIMCO HIGH INCOME FUND 504,700 5,910,037 PINNACLE WEST CAPITAL 95,000 5,269,650 PIONEER NATURAL RESOURCES CO 105,000 15,198,750 PLX TECHNOLOGY INC 2,200,000 10,472,000 PLY GEM HOLDINGS INC 40,000 802,400 PNC FINANCIAL SERVICES 40,000 1,065,000 PNC FINANCIAL SERVICES GROUP 1,160,031 84,589,461 PNM RESOURCES INC 80,000 1,775,200 POLSKIE GORNICTWO NAFTOWE I 7,401,760 12,886,730 POLYCOM INC 300,000 3,162,000 PORSCHE AUTOMOBIL HLDG PRF 92,556 7,155,970 POST PROPERTIES INC 38,000 1,880,620 POTASH CORP OF SASKATCHEWAN 659,438 25,078,584 POWER ASSETS HOLDINGS LTD 1,902,000 16,417,374 POWER CORP OF CANADA 243,000 6,500,270 POWERSHARES DB COMMODITY INDEX 5,175,400 130,057,802 PP LONDON SUMATRA INDONES PT 24,624,000 4,267,333 PPC LTD 2,731,110 8,195,641 PPG INDUSTRIES INC 100,000 14,641,000 PPL CORPORATION 1,726,500 52,243,890 PRAXAIR INC 500,000 57,580,000 PRECISION CASTPARTS CORP 450,000 101,704,500 PRIMERICA INC 540,000 20,217,600 PROCTER + GAMBLE CO/THE 3,674,945 282,934,016 PROGRESSIVE CORP 300,000 7,626,000 PROLOGIS INC 625,000 23,575,000 PROS HOLDINGS INC 890,000 26,655,500 PROSENSA HOLDING NV 64,000 1,232,000 PROTALIX BIOTHERAPEUTICS INC 240,000 1,178,400

New Jersey Division of Pensions and Benefits 135 Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

PROTECTIVE LIFE CORP 40,000 $997,600 PROVIDENT FINANCIAL SERVICES 180,000 2,840,400 PRUDENTIAL FINANCIAL INC 1,550,000 113,196,500 PRUDENTIAL PLC 1,525,256 24,868,581 PTC INC 2,050,000 50,286,500 PTT GLOBAL CHEMICAL PCL FOR 868,973 1,933,230 PUBLIC SERVICE ENTERPRISE GP 534,000 17,440,440 PUBLIC STORAGE 86,000 13,186,380 PUBLICIS GROUPE 221,998 15,784,447 PULTEGROUP INC 225,000 4,268,250 PVH CORP 84,500 10,566,725 QBE INSURANCE GROUP LTD 867,375 11,980,734 QEP RESOURCES INC 175,000 4,861,500 QIHOO 360 TECHNOLOGY CO ADR 313,837 14,489,854 QUALCOMM INC 1,800,000 109,944,000 QUANTA COMPUTER INC GDR 589,215 6,360,576 QUANTA SERVICES INC 1,600,000 42,336,000 QUEST DIAGNOSTICS INC 715,000 43,350,450 QUESTAR CORP 200,000 4,770,000 QUIMICA Y MINERA CHIL SP ADR 283,300 11,445,320 RACKSPACE HOSTING INC 1,000,000 37,890,000 RAIA DROGASIL SA 545,600 5,347,204 RAKUTEN INC 384,700 4,542,740 RALPH LAUREN CORP 11,000 1,911,140 RANDGOLD RESOURCES LTD 60,313 3,736,825 RANGE RESOURCES CORP 150,000 11,598,000 RAYMOND JAMES FINANCIAL INC 500,000 21,490,000 RAYTHEON COMPANY 800,000 52,896,000 REALNETWORKS INC 37,500 283,500 RECKITT BENCKISER GROUP PLC 402,545 28,377,907 RED ELECTRICA CORPORACION SA 108,201 5,942,251 RED HAT INC 200,000 9,564,000 REDWOOD TRUST INC 135,000 2,295,000 REED ELSEVIER NV 468,294 7,791,508 REED ELSEVIER PLC 703,432 7,969,710 REGAL BELOIT CORP 73,697 4,778,513 REGAL ENTERTAINMENT GROUP A 310,000 5,549,000 REGIONS FINANCIAL CORP 3,840,000 37,197,752 REINSURANCE GROUP OF AMERICA 80,272 5,547,598 RELIANCE INDS SPONS GDR 144A 117,682 3,388,065 RENAULT SA 114,547 7,697,811 REPSOL SA 1,373,998 14,857,653 REPUBLIC SERVICES INC 1,800,000 61,092,000 RESEARCH IN MOTION 372,200 3,909,167 RESMED INC 31,200 1,408,056 RESONA HOLDINGS INC 1,164,600 5,662,675 RESOURCE AMERICA INC CL A 100,000 850,000 RETAIL OPPORTUNITY INVESTMENTS 140,000 1,946,000 REXNORD CORP 720,000 12,132,000 REYNOLDS AMERICAN INC 1,278,000 61,816,860 RICHTER GEDEON NYRT 84,536 12,665,950

136 New Jersey Division of Pensions and Benefits Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

RICOH CO LTD 610,000 $7,246,187 RIGNET INC 200,000 5,096,000 RIO TINTO LTD 321,576 15,415,354 RIO TINTO PLC 848,356 34,522,211 RIVERBED TECHNOLOGY INC 1,000,000 15,560,000 ROBERT HALF INTL INC 272,000 9,038,560 ROBINSON DEPT STORE NVDR 433,600 852,800 ROBINSON DEPT STORE PCL FOR 2,562,900 5,040,687 ROCHE HOLDING AG BR 60,552 15,026,803 ROCHE HOLDING AG GENUSSCHEIN 746,219 185,342,139 ROCK TENN COMPANY CL A 430,500 42,998,340 ROCKY MOUNTAIN CHOC FACT INC 90,000 1,088,100 ROGERS COMMUNICATIONS INC B 336,500 13,141,665 ROLLS ROYCE HOLDINGS PLC 1,341,188 23,067,605 ROSS STORES INC 155,000 10,045,550 ROUSE PROPERTIES INC 25,000 490,500 ROWAN COMPANIES PLC A 130,000 4,429,100 ROYAL BANK OF CANADA 887,542 51,555,594 ROYAL BANK OF SCOTLAND GROUP 1,289,134 5,347,554 RWE AG 356,032 11,347,560 RYDER SYSTEM INC 50,000 3,039,500 SABMILLER PLC 562,524 26,896,511 SABRA HEALTH CARE REIT INC 590,000 15,404,900 SAFEGUARD SCIENTIFICS INC 250,000 4,012,500 SAFRAN SA 259,423 13,530,583 SAGA COMMUNICATIONS INC CL A 80,000 3,672,800 SAGE GROUP PLC/THE 1,802,668 9,301,433 SAIC INC 180,000 2,507,400 SAKS INC 210,000 2,864,400 SAMSUNG ELECTRONICS CO LTD 97,495 114,564,415 SAMSUNG ELECTRONICS PFD 11,949 9,249,084 SAMSUNG ENGINEERING CO LTD 19,622 1,273,141 SAMSUNG FIRE + MARINE INS 5,926 1,209,017 SANDISK CORP 100,000 6,110,000 SANDS CHINA LTD 1,391,400 6,592,527 SANDVIK AB 878,642 10,440,416 SANLAM LTD 2,621,880 12,149,093 SANOFI 987,760 102,227,228 SANTOS LTD 942,262 10,807,122 SAP AG 747,652 54,675,430 SAPIENT CORPORATION 50,000 653,000 SBA COMMUNICATIONS CORP CL A 70,000 5,188,400 SBERBANK 14,015,069 39,102,043 SBERBANK SPONSORED ADR 575,867 6,582,885 SCANA CORP 110,000 5,401,000 SCHINDLER HOLDING PART CERT 44,397 6,175,179 SCHRODERS PLC 175,000 5,794,175 SCHWAB (CHARLES) CORP 470,000 9,978,100 SCIQUEST INC 130,000 3,256,500 SEACHANGE INTERNATIONAL INC 270,000 3,161,700 SEADRILL LTD 308,563 12,390,932

New Jersey Division of Pensions and Benefits 137 Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

SEALED AIR CORP 1,000,000 $23,950,000 SECOM CO LTD 131,400 7,143,102 SEGA SAMMY HOLDINGS INC 302,700 7,566,357 SEGRO PLC 300,000 1,270,388 SEKISUI HOUSE LTD 708,000 10,220,688 SELECT INCOME REIT 25,000 701,000 SEMBCORP INDUSTRIES LTD 544,000 2,123,157 SEMEN INDONESIA PERSERO TBK 9,438,600 16,261,971 SEMPRA ENERGY 217,140 17,753,366 SEQUENTIAL BRANDS GROUP INC 14,200 86,620 SES 213,976 6,119,004 SEVEN + I HOLDINGS CO LTD 674,130 24,600,808 SHANGHAI PHARMACEUTICALS H 1,412,700 2,648,238 SHANGRI LA ASIA LTD 10,937,450 18,895,722 SHARP CORP 477,000 1,920,773 SHAW COMMUNICATIONS INC B 294,055 7,035,355 SHFL ENTERTAINMENT INC 200,000 3,542,000 SHIKOKU ELECTRIC POWER CO 60,900 1,098,021 SHIMANO INC 107,600 9,120,572 SHIMAO PROPERTY HOLDINGS LTD 850,000 1,692,033 SHIN CORP PCL FOREIGN 518,000 1,453,039 SHIN CORPORATION PUB CO NVDR 183,400 514,454 SHIN ETSU CHEMICAL CO LTD 307,360 20,359,680 SHINHAN FINANCIAL GROUP LTD 1,207,573 39,757,230 SHIRE PLC 451,233 14,269,433 SHISEIDO CO LTD 288,618 4,291,426 SHIZUOKA BANK LTD/THE 527,000 5,671,344 SHOPPERS DRUG MART CORP 280,966 12,922,385 SHOPRITE HOLDINGS LTD 1,456,191 27,210,435 SI FINANCIAL GROUP INC 26,943 297,720 SIAM CEMENT PCL NVDR 255,700 3,677,001 SIEMENS AG 499,541 50,420,317 SIGNATURE BANK 15,000 1,245,300 SIHUAN PHARMACEUTICAL HLDGS 2,580,000 1,693,090 SILICON IMAGE INC 250,000 1,462,500 SILICONWARE PRECISION SP ADR 679,000 4,257,330 SILVER WHEATON CORP 414,700 8,101,774 SIMON PROPERTY GROUP INC 387,377 61,174,576 SINCLAIR BROADCAST GROUP A 120,000 3,525,600 SINGAPORE AIRLINES LTD 614,468 4,912,643 SINGAPORE EXCHANGE LTD 934,443 5,179,480 SINGAPORE PRESS HOLDINGS LTD 2,285,000 7,512,773 SINGAPORE TECH ENGINEERING 3,418,447 11,293,300 SINGAPORE TELECOM LTD 7,470,857 22,206,994 SINO BIOPHARMACEUTICAL 7,028,000 4,557,664 SINOPHARM GROUP CO H 1,745,200 4,383,053 SK C+C CO LTD 16,999 1,485,487 SK HYNIX INC 448,970 12,265,544 SK TELECOM 17,774 3,268,281 SKANDINAVISKA ENSKILDA BANKEN 2,769,279 26,300,037 SKANSKA AB B SHS 376,765 6,212,942

138 New Jersey Division of Pensions and Benefits Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

SKECHERS USA INC CL A 50,000 $1,200,500 SKF AB B SHARES 753,081 17,528,691 SL GREEN REALTY CORP 131,000 11,552,890 SM ENERGY CO 30,000 1,799,400 SM INVESTMENTS CORP 293,340 7,265,597 SM PRIME HOLDINGS INC 6,375,875 2,405,712 SMC CORP 28,400 5,695,153 SMITH + NEPHEW PLC 1,015,771 11,323,559 SMITHS GROUP PLC 616,348 12,227,383 SNAM SPA 2,664,044 12,119,994 SNYDERS LANCE INC 110,000 3,125,100 SOCIETE GENERALE 418,565 14,363,485 SODEXO 65,731 5,468,185 SOFTBANK CORP 768,959 44,820,784 SONIC AUTOMOTIVE INC CLASS A 293,000 6,194,020 SONUS NETWORKS INC 300,000 903,000 SONY CORP 606,800 12,693,717 SOUTH JERSEY INDUSTRIES 35,000 2,009,350 SOUTHERN CO/THE 741,000 32,700,330 SOUTHWEST AIRLINES CO 3,400,000 43,826,000 SOUTHWEST GAS CORP 35,000 1,637,650 SOUTHWESTERN ENERGY CO 340,000 12,420,200 SOUZA CRUZ SA 1,079,500 13,384,715 SOVRAN SELF STORAGE INC 39,500 2,559,205 SPDR BARCLAYS SHORT TERM HIGH YIELD 325,000 9,808,500 SPDR DB INTERNATIONAL GOVERNMENT 245,000 14,104,650 SPDR GOLD SHARES 440,000 52,426,000 SPECTRA ENERGY CORP 745,000 25,672,700 SPECTRUM GROUP INTERNATIONAL 152,837 343,883 SPIRIT REALTY CAPITAL INC 25,000 443,000 SPLUNK INC 220,000 10,199,200 SPRINT COMMUNICATIONS INC 4,800,000 33,696,000 SPX CORP 175,000 12,596,500 SSE PLC 619,403 14,307,805 ST JUDE MEDICAL INC 700,000 31,941,000 STAG INDUSTRIAL INC 315,000 6,284,250 STANDARD BANK GROUP LTD 818,362 9,190,003 STANDARD CHARTERED PLC 1,547,283 33,488,333 STANDARD FOODS CORP GDR 231,363 3,641,654 STANDARD LIFE PLC 1,588,227 8,327,445 STANLEY BLACK + DECKER INC 340,000 26,282,000 STARHUB LTD 502,000 1,654,467 STARWOOD EUROPEAN REAL ESTATE 1,200,000 1,865,541 STARWOOD HOTELS + RESORTS 262,500 16,587,375 STARWOOD PROPERTY TRUST INC 888,500 21,990,375 STATE BANK OF INDIA GDR 64,609 4,322,342 STATE STREET CORP 360,000 23,475,600 STEELCASE INC CL A 245,000 3,572,100 STERICYCLE INC 50,000 5,521,500 STEVEN MADDEN LTD 409,000 19,787,420 STIFEL FINANCIAL CORP 600,000 21,402,000

New Jersey Division of Pensions and Benefits 139 Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

STMICROELECTRONICS NV 760,316 $6,839,998 STOCKLAND 1,727,552 5,502,977 STOCKMANN OYJ ABP B SHARE 80,920 1,193,836 STORA ENSO OYJ R SHS 240,625 1,610,798 STRATEGIC HOTELS + RESORTS INC 310,000 2,746,600 STRYKER CORP 45,000 2,910,600 SUBSEA 7 SA 195,599 3,411,583 SUEZ ENVIRONNEMENT CO 97,453 1,257,115 SUMITOMO CHEMICAL CO LTD 1,195,000 3,753,360 SUMITOMO ELECTRIC INDUSTRIES 944,400 11,275,567 SUMITOMO METAL MINING CO LTD 318,000 3,540,625 SUMITOMO MITSUI FINANCIAL GROUP 1,130,820 51,796,758 SUMITOMO MITSUI TRUST HOLDING 4,349,000 20,270,670 SUMITOMO REALTY + DEVELOPMENT 222,000 8,838,879 SUMMER INFANT INC 485,000 1,484,100 SUN BANCORP INC NJ 33,075 112,124 SUN COMMUNITIES INC 262,000 13,037,120 SUN HUNG KAI PROPERTIES 1,046,007 13,499,301 SUN LIFE FINANCIAL INC 579,276 17,104,552 SUNCOKE ENERGY INC 40,000 560,800 SUNCOR ENERGY INC 1,315,024 38,642,347 SUNCORP GROUP LTD 1,296,530 14,146,406 SUNEDISON INC 100,000 817,000 SUNSTONE HOTEL INVESTORS INC 80,000 966,400 SUPALAI PCL NVDR 1,404,100 801,308 SUPALAI PUBLIC CO LTD FOR 8,207,500 4,683,951 SUPERIOR ENERGY SERVICES INC 75,000 1,945,500 SUZUKI MOTOR CORP 210,971 4,857,207 SVB FINANCIAL GROUP 95,000 7,915,400 SVENSKA CELLULOSA AB B SHS 325,464 8,115,564 SVENSKA HANDELSBANKEN A SHS 285,052 11,369,222 SWATCH GROUP AG/THE BR 24,510 13,392,876 SWEDBANK AB A SHARES 768,225 17,505,575 SWEDISH MATCH AB 136,831 4,826,980 SWEDISH ORPHAN BIOVITRUM AB 790,000 4,705,272 SWIRE PACIFIC LTD A 1,463,000 17,654,799 SWIRE PROPERTIES LTD 3,219,945 9,589,656 SWISS LIFE HOLDING AG 75,000 12,175,659 SWISS RE AG 294,163 21,856,639 SWISSCOM AG 19,288 8,431,556 SWK HOLDINGS CORP 635,000 635,000 SYMANTEC CORP 800,000 17,976,000 SYNAPTICS INC 200,000 7,712,000 SYNGENTA AG 61,062 23,852,999 SYNNEX TECHNOLOGY INTL GDR 1,261,160 6,559,293 SYNOPSYS INC 280,000 10,010,000 SYSCO CORP 340,000 11,614,400 T ROWE PRICE GROUP INC 300,000 21,945,000 TAISHO PHARMACEUTICAL HOLDIN 99,400 7,044,607 TAIWAN CEMENT 1,028,180 1,265,885 TAIWAN FERTILIZER CO LTD 530,000 1,280,304

140 New Jersey Division of Pensions and Benefits Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

TAIWAN SEMICONDUCTOR MANUFAC 1,646,408 $6,097,604 TAIWAN SEMICONDUCTOR SP ADR 4,461,663 81,737,666 TAKEDA PHARMACEUTICAL CO LTD 549,900 24,800,443 TAL INTERNATIONAL GROUP INC 890,000 38,777,300 TALISMAN ENERGY INC 955,050 10,863,643 TAMBANG BATUBARA BUKIT ASAM 677,500 907,884 TANGER FACTORY OUTLET CENTER 167,000 5,587,820 TARGET CORP 444,880 30,634,437 TATA POWER CO LTD GDR 69,121 1,003,810 TATA STEEL LTD 150,110 702,515 TATA STEEL LTD GDR 643,264 3,010,476 TAUBMAN CENTERS INC 79,500 5,974,425 TAYLOR MORRISON HOME CORP A 1,460,000 35,594,800 TE CONNECTIVITY LTD 640,000 29,145,600 TECK RESOURCES LTD CLS B 414,875 8,836,666 TECO ELECTRIC + MAC GDR 461,752 3,927,940 TECO ENERGY INC 241,000 4,142,790 TELE2 AB B SHS 266,316 3,107,273 TELECOM ITALIA SPA 12,247,939 8,501,533 TELEDYNE TECHNOLOGIES INC 25,000 1,933,750 TELEFONICA SA 2, 601,209 33,287,712 TELEKOMUNIK INDONESIA SP ADR 690,000 29,490,600 TELEKOMUNIKACJA POLSKA SA 3,429,679 7,875,799 TELENOR ASA 739,179 14,575,241 TELIASONERA AB 1,827,279 11,839,026 TELSTRA CORP LTD 3,334,982 14,561,267 TELUS CORP 468,800 13,642,504 TEMPUR SEALY INTERNATIONAL INC 22,000 965,800 TENARIS SA 494,388 9,902,926 TENCENT HOLDINGS LTD 534,600 20,966,733 TENET HEALTHCARE CORP 1,307,500 60,275,750 TERADATA CORP 250,000 12,557,500 TERADYNE INC 300,000 5,271,000 TERRENO REALTY CORP 65,000 1,204,450 TERUMO CORP 87,900 4,366,905 TESCO PLC 5,206,629 26,170,314 TEVA PHARMACEUTICAL IND LTD 424,147 16,381,685 TEVA PHARMACEUTICAL SP ADR 280,500 10,995,600 TEXAS INDUSTRIES INC 20,000 1,302,800 TEXAS INSTRUMENTS INC 750,000 26,152,500 THAI OIL PCL FRGN 1,339,700 2,721,299 THERAVANCE INC 539,108 20,771,831 THERMO FISHER SCIENTIFIC INC 100,000 8,463,000 THOMSON REUTERS CORP 201,800 6,565,028 THOR INDUSTRIES INC 75,000 3,688,500 THYSSENKRUPP AG 777,274 15,251,067 TIBCO SOFTWARE INC 100,000 2,140,000 TIFFANY + CO 106,500 7,757,460 TIGER BRANDS LTD 396,821 11,828,042 TIM HORTONS INC 186,626 10,062,360 TIME WARNER CABLE 220,000 24,745,600

New Jersey Division of Pensions and Benefits 141 Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

TIME WARNER INC 1,050,000 $60,711,000 TITAN INTERNATIONAL INC 1,100,000 18,557,000 TITAN MACHINERY INC 690,000 13,544,700 TIVO INC 360,000 3,978,000 TJX COMPANIES INC 1,092,500 54,690,550 TNK BP HOLDING CLS 1,895,164 2,676,946 TOBU RAILWAY CO LTD 1,831,000 9,419,047 TOHOKU ELECTRIC POWER CO INC 421,200 5,253,604 TOKIO MARINE HOLDINGS INC 884,792 28,012,995 TOKYO ELECTRON LTD 620,852 31,375,417 TOKYO GAS CO LTD 3,869,428 21,346,419 TOKYU CORP 1,539,000 10,054,976 TOLL BROTHERS INC 1,630,000 53,186,900 TONENGENERAL SEKIYU KK 274,000 2,650,768 TOOTSIE ROLL INDS 86,088 2,735,877 TOPPAN PRINTING CO LTD 1,218,000 8,448,201 TORAY INDUSTRIES INC 3,636,774 23,504,393 TORONTO DOMINION BANK 859,528 68,822,532 TOSHIBA CORP 2,034,016 9,767,208 TOTAL ACCESS COMMUNICA NVDR 1,853,000 6,870,708 TOTO LTD 525,000 5,332,713 TOYOTA INDUSTRIES CORP 182,800 7,471,365 TOYOTA MOTOR CORP 1,758,700 106,051,372 TPKHLDCO 2012 NE GDR 174,502 2,781,562 TRACTOR SUPPLY COMPANY 96,200 11,314,082 TRANSALTA CORP 439,466 6,002,849 TRANSCANADA CORP 863,164 37,048,264 TRANSDIGM GROUP INC 280,000 43,895,600 TRANSOCEAN LTD 298,851 14,329,905 TRANSURBAN GROUP 1,525,597 9,440,040 TRAVELERS COS INC/THE 586,595 46,880,672 TREASURY WINE ESTATES LTD 4,500,000 23,973,023 TREND MICRO INC 48,200 1,528,464 TREX COMPANY INC 640,000 30,393,600 TRI POINTE HOMES INC 65,000 1,077,700 TRICAN WELL SERVICE LTD 200,000 2,650,363 TRIQUINT SEMICONDUCTOR INC 200,000 1,386,000 TRIUMPH GROUP INC 670,000 53,030,500 TRUWORTHS INTERNATIONAL LTD 1,124,356 9,847,969 TRW AUTOMOTIVE HOLDINGS CORP 875,000 58,135,000 TSINGTAO BREWERY CO LTD H 1,676,000 12,014,105 TULLOW OIL PLC 603,635 9,164,490 TUMI HOLDINGS INC 45,000 1,080,000 TUPPERWARE BRANDS CORP 120,000 9,322,800 TUPRAS TURKIYE PETROL RAFINE 264,346 6,452,977 TURKCELL ILETISIM HIZMET AS 2,595,133 15,064,132 TURKIYE GARANTI BANKASI 3,952,661 17,249,167 TURKIYE IS BANKASI C 7,056,568 20,846,582 TWENTY FIRST CENTURY FOX INC 2,500,000 81,500,000 TYCO INTERNATIONAL LTD 1,150,000 37,892,500 UBS AG 2,769,994 47,076,577

142 New Jersey Division of Pensions and Benefits Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

ULTA SALON COSMETICS + FRAGRANCE INC 140,000 $14,022,400 ULTRA CLEAN HOLDINGS 250,000 1,512,500 ULTRAPAR PARTICIPACOES SA 359,960 8,655,791 UMH PROPERTIES INC 275,000 2,824,250 UNDER ARMOUR INC CLASS A 790,000 47,170,900 UNI PRESIDENT CHINA HOLDINGS 8,982,900 9,137,685 UNI PRESIDENT ENTERPRISES CO 1,193,948 2,326,468 UNIBAIL RODAMCO SE 191,445 44,544,084 UNICREDIT SPA 3,080,784 14,408,388 UNILEVER NV CVA 961,007 37,793,463 UNILEVER PLC 1,288,805 52,034,940 UNION PACIFIC CORP 340,000 52,455,200 UNITE GROUP PLC 325,000 1,784,891 UNITED NATURAL FOODS INC 640,000 34,553,600 UNITED ONLINE INC 1,840,000 13,947,200 UNITED OVERSEAS BANK LTD 1,118,119 17,508,352 UNITED PARCEL SERVICE CL B 450,000 38,916,000 UNITED RENTALS INC 1,340,000 66,879,400 UNITED STATES STEEL CORP 150,000 2,629,500 UNITED TECHNOLOGIES CORP 1,050,000 94,229,000 UNITED THERAPEUTICS CORP 20,000 1,316,400 UNITED TRACTORS TBK PT 7,225,977 13,250,658 UNITEDHEALTH GROUP INC 785,228 51,416,729 UNIVERSAL DISPLAY CORP 300,000 8,433,000 UNIVERSAL HEALTH SERVICES B 235,000 15,735,600 UPM KYMMENE OYJ 414,713 4,059,155 URBAN OUTFITTERS INC 104,300 4,194,946 URS CORP 900,000 42,498,000 US AIRWAYS GROUP INC 1,400,000 22,988,000 US BANCORP 1,696,671 61,334,657 VAIL RESORTS INC 30,000 1,845,600 VALASSIS COMMUNICATIONS INC 110,000 2,704,900 VALE SA SP ADR 1,653,457 21,742,960 VALEANT PHARMACEUTICALS INTL 175,600 15,093,993 VALERO ENERGY CORP 550,000 19,123,500 VALLOUREC 61,088 3,086,877 VALUECLICK INC 470,000 11,599,600 VANGUARD FTSE DEVELOPED MARKETS 2,000,000 71,220,000 VANGUARD FTSE EMERGING MARKETS 29,222,500 1,133,248,550 VCA ANTECH INC 80,000 2,087,200 VECTREN CORPORATION 70,000 2,368,100 VECTURA GROUP PLC 45,000 55,284 VENTAS INC 100,000 6,946,000 VENTURE CORP LTD 160,000 915,872 VEOLIA ENVIRONNEMENT 534,683 6,075,059 VERIFONE SYSTEMS INC 1,725,000 28,997,250 VERISIGN INC 120,000 5,359,200 VERISK ANALYTICS INC CLASS A 50,000 2,985,000 VERIZON COMMUNICATIONS INC 1,900,000 95,646,000 VERTEX PHARMACEUTICALS INC 60,000 4,792,200 VF CORP 6,000 1,158,360

New Jersey Division of Pensions and Benefits 143 Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

VIACOM INC CLASS B 900,000 $61,245,000 VIASAT INC 75,000 5,359,500 VIENNA INSURANCE GROUP AG 75,000 3,478,884 VINCI SA 367,595 18,422,276 VISA INC CLASS A SHARES 620,000 113,305,000 VISHAY INTERTECHNOLOGY INC 150,000 2,083,500 VISHAY PRECISION GROUP 60,714 919,210 VIVENDI 867,872 16,413,895 VODACOM GROUP LTD 1,092,203 11,554,432 VODAFONE GROUP PLC 29,831,532 84,993,665 VOLKSWAGEN AG PREF 107,184 21,671,699 VOLVO AB B SHS 1,147,200 15,263,253 VORNADO REALTY TRUST 68,386 5,665,780 WABASH NATIONAL CORP 2,900,000 29,522,000 WAL MART STORES INC 2,206,000 164,324,940 WALGREEN CO 440,800 19,483,360 WALMART DE MEXICO SER V 3,698,300 10,311,976 WALT DISNEY CO/THE 2,920,000 184,398,000 WATTS WATER TECHNOLOGIES A 440,000 19,949,600 WEB.COM GROUP INC 160,000 4,096,000 WEICHAI POWER CO LTD H 2,437,800 7,165,979 WEIR GROUP PLC/THE 181,986 5,937,152 WELLPOINT INC 270,000 22,096,800 WELLS FARGO + CO 9,259,890 382,155,660 WEST FARMERS LTD 701,589 25,431,107 WEST JAPAN RAILWAY CO 124,800 5,289,254 WESTAR ENERGY INC 100,000 3,196,000 WESTERN ASSET HIGH INCOME FUND 500,000 4,610,000 WESTERN ASSET MORTGAGE CAPITAL 107,500 1,876,950 WESTERN UNION CO 700,000 11,977,000 WESTFIELD GROUP 2,227,873 23,329,410 WESTFIELD RETAIL TRUST 3,130,093 8,881,907 WESTPAC BANKING CORP 1,976,819 52,257,833 WEYERHAEUSER CO 2,831,000 82,907,190 WGL HOLDINGS INC 45,000 1,944,900 WHARF HOLDINGS LTD 1,773,430 14,918,913 WHIRLPOOL CORP 56,000 6,404,160 WHITBREAD PLC 278,409 12,904,358 WHITESTONE REIT 100,000 1,576,000 WHITEWAVE FOODS CO CL A 1,700,000 27,625,000 WHOLE FOODS MARKET INC 50,000 2,574,000 WILLIAMS COS INC 615,000 19,969,050 WILMAR INTERNATIONAL LTD 700,119 1,738,843 WINTHROP REALTY TRUST 100,000 1,203,000 WISCONSIN ENERGY CORP 192,400 7,886,476 WM MORRISON SUPERMARKETS 2,399,263 9,526,805 WOLSELEY PLC 215,974 9,935,133 WOLTERS KLUWER 272,871 5,765,505 WOODSIDE PETROLEUM LTD 521,450 16,710,601 WOOLWORTHS HOLDINGS LTD 1,440,800 9,348,248 WOOLWORTHS LTD 887,697 26,659,886

144 New Jersey Division of Pensions and Benefits Schedule 25, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Equities June 30, 2013

NAME SHARES FAIR VALUE

WP CAREY INC 84,000 $5,558,280 WPP PLC 1,241,252 21,122,855 WPX ENERGY INC 265,000 5,019,100 WR BERKLEY CORP 107,905 4,408,998 WYNDHAM WORLDWIDE CORP 322,000 18,428,060 WYNN MACAU LTD 5,677,200 15,407,384 WYNN RESORTS LTD 17,500 2,240,000 XCEL ENERGY INC 476,000 13,489,840 XENOPORT INC 99,906 494,535 XL AXIATA TBK PT 5,134,500 2,496,117 XL GROUP PLC 280,000 8,489,600 XO GROUP INC 520,000 5,824,000 YAHOO JAPAN CORP 17,742 8,733,919 YAMAHA MOTOR CO LTD 491,800 6,361,937 YAMANA GOLD INC 708,300 6,734,204 YAMATO HOLDINGS CO LTD 350,800 7,384,333 YANDEX NV A 648,800 17,926,344 YARA INTERNATIONAL ASA 220,609 8,750,583 YOUKU TUDOU INC 174,400 3,346,736 YPF S.A. SPONSORED ADR 567,000 8,368,920 YUANTA FINANCIAL HOLDING CO 977,097 508,582 YUM BRANDS INC 488,000 33,837,920 ZAGG INC 1,380,000 7,383,000 ZAIS FINANCIAL CORP 398,500 7,240,745 ZIMMER HOLDINGS INC 240,500 18,023,070 ZOETIS INC W/I 2,982,577 92,131,810 ZTE CORP H 4,144,400 6,679,044 ZURICH INSURANCE GROUP AG 103,253 26,736,759 Total equities $ 35,503,380,644

See accompanying independent auditors’ report.

New Jersey Division of Pensions and Benefits 145 Schedule 26 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

99 CENTS ONLY STORES 11.000% 12/15/2019 $ 300,000 339,000 A S CO. ISSUER SUBSIDARY 7.875 12/15/2020 4,375,000 4,396,875 ABC SUPPLY CO INC 5.625 04/15/2021 2,150,000 2,112,375 ACADIA HEALTHCARE CO INC 6.125 03/15/2021 2,125,000 2,125,000 ACCELLENT INC 8.375 02/01/2017 225,000 232,875 ACCESS MIDSTREAM PARTNERS 4.875 05/15/2023 2,105,000 1,952,387 ACCESS MIDSTREAM PARTNERS 5.875 04/15/2021 100,000 101,500 ACCESS MIDSTREAM PARTNERS 6.125 07/15/2022 3,710,000 3,756,375 ACCURIDE CORP 9.500 08/01/2018 525,000 534,187 ACE CASH EXPRESS INC 11.000 02/01/2019 175,000 168,000 ACTUANT CORPORATION 5.625 06/15/2022 150,000 151,875 ADVANCED MICRO DEVICES 7.500 08/15/2022 3,750,000 3,628,125 ADVANCED MICRO DEVICES 8.125 12/15/2017 50,000 51,625 AEP TEXAS CENTRAL CO 6.650 02/15/2033 12,500,000 14,733,512 AES CORPORATION 4.875 05/15/2023 275,000 256,437 AES CORPORATION 7.375 07/01/2021 1,000,000 1,097,500 AES CORPORATION 7.750 10/15/2015 618,000 681,345 AES CORPORATION 8.000 10/15/2017 2,100,000 2,362,500 AES CORPORATION 8.000 06/01/2020 250,000 285,000 AES CORPORATION 9.750 04/15/2016 2,045,000 2,356,862 AFFINIA GROUP INC 7.750 05/01/2021 675,000 680,062 AFFINION GROUP HOLDINGS 11.625 11/15/2015 1,000,000 500,000 AFFINION GROUP INC 7.875 12/15/2018 225,000 169,875 AGFC CAPITAL TRUST 6.000 01/15/2067 100,000 75,000 AGRIUM INC 3.500 06/01/2023 15,000,000 14,428,710 AGUILA 3 SA 7.875 01/31/2018 500,000 515,000 AID ISRAEL 0.000 09/15/2018 20,000,000 18,297,860 AID ISRAEL 0.000 03/15/2023 19,000,000 14,093,155 AID ISRAEL 5.500 09/18/2023 60,000,000 72,584,640 AID ISRAEL 5.500 12/04/2023 50,000,000 60,227,050 AID ISRAEL 5.500 04/26/2024 89,000,000 108,144,879 AINSWORTH LUMBER LTD 7.500 12/15/2017 1,825,000 1,934,500 AIR CANADA 9.250 08/01/2015 550,000 576,125 AIR CANADA 5.375 11/15/2022 2,075,000 2,069,812 AIR CANADA 6.625 05/15/2018 75,000 75,609 AIR LEASE CORP 4.500 01/15/2016 275,000 273,625 AIR LEASE CORP 4.750 03/01/2020 1,100,000 1,061,500 AIR MEDICAL GROUP HOLDING 9.250 11/01/2018 1,500,000 1,616,250 AIRCASTLE LTD 6.750 04/15/2017 25,000 26,250 AK STEEL CORP 8.375 04/01/2022 300,000 258,000 ALBEA BEAUTY HOLDINGS SA 8.375 11/01/2019 275,000 269,500 ALBERTA ENERGY CO LTD 7.375 11/01/2031 12,000,000 14,285,916 ALBERTA ENERGY CO LTD 8.125 09/15/2030 8,500,000 10,753,783 ALCATEL LUCENT USA INC 6.450 03/15/2029 1,110,000 840,825 ALCOA INC 5.870 02/23/2022 43,000,000 41,839,215 ALCOA INC 5.900 02/01/2027 58,170,000 54,411,985 ALCOA INC 6.150 08/15/2020 10,000,000 10,242,920 ALERE INC 6.500 06/15/2020 3,700,000 3,589,000 ALERE INC 7.250 07/01/2018 125,000 132,500

146 New Jersey Division of Pensions and Benefits Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

ALERE INC 8.625% 10/01/2018 $3,650,000 3,850,750 ALERIS INTL INC 7.625 02/15/2018 2,250,000 2,340,000 ALERIS INTL INC 7.875 11/01/2020 3,300,000 3,382,500 ALGECO SCOTSMAN GLOBAL FINANCE 8.500 10/15/2018 1,250,000 1,243,750 ALGECO SCOTSMAN GLOBAL FINANCE 10.750 10/15/2019 175,000 167,125 ALLEN SYSTEMS GROUP INC 10.500 11/15/2016 550,000 357,500 ALLIANCE DATA SYSTEMS CO 6.375 04/01/2020 1,000,000 1,030,000 ALLIANCE HEALTHCARE SERVICES 8.000 12/01/2016 450,000 453,375 ALLISON TRANSMISSION INC 7.125 05/15/2019 4,160,000 4,399,200 ALLY FINANCIAL INC 3.125 01/15/2016 500,000 498,809 ALLY FINANCIAL INC 4.625 06/26/2015 925,000 948,154 ALLY FINANCIAL INC 5.500 02/15/2017 4,735,000 4,947,175 ALLY FINANCIAL INC 6.250 12/01/2017 1,000,000 1,069,770 ALLY FINANCIAL INC 6.750 12/01/2014 150,000 157,875 ALLY FINANCIAL INC 7.500 09/15/2020 2,750,000 3,169,375 ALLY FINANCIAL INC 7.500 12/31/2013 750,000 768,750 ALLY FINANCIAL INC 8.000 03/15/2020 1,250,000 1,451,563 ALLY FINANCIAL INC 8.000 11/01/2031 925,000 1,112,312 ALLY FINANCIAL INC 8.000 11/01/2031 2,025,000 2,419,874 ALLY FINANCIAL INC 8.300 02/12/2015 2,500,000 2,693,750 ALPHA NATURAL RESOURCES 6.000 06/01/2019 150,000 121,500 ALPHA NATURAL RESOURCES 6.250 06/01/2021 550,000 437,250 ALPHABET HOLDING CO INC 7.750 11/01/2017 3,300,000 3,382,500 ALTA MESA HOLDINGS 9.625 10/15/2018 650,000 674,375 ALTEGRITY INC 12.000 11/01/2015 1,125,000 1,023,750 AMC ENTERTAINMENT INC 9.750 12/01/2020 500,000 566,250 AMC NETWORKS INC 4.750 12/15/2022 3,275,000 3,160,375 AMC NETWORKS INC 7.750 07/15/2021 200,000 218,500 AMERICAN AIRLINES 8.625 04/15/2023 22,749 24,170 AMERENENERGY GENERATING 6.300 04/01/2020 75,000 57,000 AMERENENERGY GENERATING 7.000 04/15/2018 300,000 246,000 AMERICAN AXLE + MFG INC 6.250 03/15/2021 1,025,000 1,041,656 AMERICAN AXLE + MFG INC 9.250 01/15/2017 333,000 358,807 AMERICAN GILSONITE CO 11.500 09/01/2017 231,000 243,127 AMERICAN GREETINGS 7.375 12/01/2021 250,000 251,250 AMERICAN INTL GROUP 6.820 11/15/2037 164,000 196,928 AMERICAN INTL GROUP 8.175 05/15/2068 500,000 610,000 AMERICAN MUNICIPAL POWER OF OHIO 6.270 02/15/2050 10,000,000 10,647,600 AMERICAN MUNICIPAL POWER OF OHIO 6.553 02/15/2039 20,000,000 21,327,400 AMERICAN MUNICIPAL POWER OF OHIO 8.084 02/15/2050 10,000,000 13,304,500 AMERICAN TIRE DISTRIBUTOR INC. 9.750 06/01/2017 1,200,000 1,266,000 AMERIGAS FINANCE CORP. 6.750 05/20/2020 475,000 491,625 AMERIGAS FINANCE CORP. 7.000 05/20/2022 1,250,000 1,278,125 AMERISTAR CASINOS INC 7.500 04/15/2021 3,050,000 3,172,000 AMERITECH CAPITAL FUNDNG 6.450 01/15/2018 25,000,000 28,501,900 AMGEN INC 3.450 10/01/2020 10,000,000 10,206,800 AMGEN INC 5.850 06/01/2017 19,000,000 21,690,172 AMKOR TECHNOLOGY INC 6.375 10/01/2022 150,000 147,375 AMKOR TECHNOLOGY INC 6.625 06/01/2021 1,050,000 1,034,250

New Jersey Division of Pensions and Benefits 147 Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

AMSTED INDUSTRIES 8.125% 03/15/2018 $100,000 105,500 ANADARKO FINANCE CO 7.500 05/01/2031 60,000,000 74,801,640 ANADARKO PETROLEUM CORP 7.950 06/15/2039 10,000,000 13,216,720 ANALOG DEVICES INC 2.875 06/01/2023 87,500,000 82,262,162 ANCESTRY.COM INC 11.000 12/15/2020 1,050,000 1,160,250 ANCHORAGE AK ELECTRIC UTILITY 6.558 12/01/2039 7,000,000 7,376,600 ANHEUSER BUSCH COMPANY 7.550 10/01/2030 15,000,000 19,890,225 ANTERO RESOURCES FINANCE 6.000 12/01/2020 3,715,000 3,659,275 ANTERO RESOURCES FINANCE 7.250 08/01/2019 1,300,000 1,355,250 APERAM 7.750 04/01/2018 175,000166,250 APPALACHIAN POWER CO 5.800 10/01/2035 20,000,000 21,884,320 APPLE INC 1.000 05/03/2018 85,000,000 81,625,330 APPROACH RESOURCES INC 7.000 06/15/2021 425,000 428,187 APRIA HEALTHCARE GROUP I 12.375 11/01/2014 1,725,000 1,748,718 APX GROUP INC 6.375 12/01/2019 450,000 427,500 APX GROUP INC 8.750 12/01/2020 1,075,000 1,023,937 ARAMARK CORP 5.750 03/15/2020 2,575,000 2,632,937 ARAPAHOE COUNTY COLORADO WATER 6.680 12/01/2039 9,000,000 9,810,090 ARCELORMITTAL 4.250 08/05/2015 990,000999,900 ARCELORMITTAL 6.750 02/25/2022 1,900,0001,947,500 ARCELORMITTAL 7.500 10/15/2039 1,050,000997,500 ARCELORMITTAL 10.350 06/01/2019 1,175,0001,389,437 ARCH COAL INC 7.000 06/15/2019 1,825,000 1,519,312 ARCH COAL INC 7.250 06/15/2021 500,000 405,000 ARCH COAL INC 8.750 08/01/2016 175,000 175,000 ARCH COAL INC 9.875 06/15/2019 225,000 213,750 ARD FINANCE SA 11.125 06/01/2018 839,433 889,799 ARDAGH PACKAGING FINANCE 9.125 10/15/2020 750,000 799,687 ARDAGH PACKAGING FINANCE 7.000 11/15/2020 3,000,000 2,891,250 ARDAGH PACKAGING FINANCE 7.375 10/15/2017 500,000 533,125 ARIZONA BOARD OF REGENTS 6.643 08/01/2044 14,000,000 15,913,940 ARIZONA PUBLIC SERVICE 8.750 03/01/2019 17,000,000 22,091,908 ARMORED AUTOGROUP INC 9.250 11/01/2018 875,000 802,812 AS AMERICAS 10.750 01/15/2016 50,000 52,500 ASBURY AUTOMOTIVE GROUP 8.375 11/15/2020 125,000 138,437 ASHLAND INC 3.875 04/15/2018 950,000 940,500 ASHLAND INC 4.750 08/15/2022 2,220,000 2,197,800 ASHLAND INC 6.875 05/15/2043 1,750,000 1,785,000 ASHTON WOODS USA/FINANCE 6.875 02/15/2021 1,300,000 1,306,500 ASIAN DEVELOPMENT BANK 0.500 06/20/2016 50,000,000 49,356,655 ASIAN DEVELOPMENT BANK 7.500 06/15/2015 25,000,000 28,277,500 ASSOCIATED MATERIALS 9.125 11/01/2017 2,000,000 2,100,000 ASSOCIATED MATERIALS 9.125 11/01/2017 675,000 708,750 AT+T INC 6.150 09/15/2034 10,000,000 11,023,600 AT+T INC 6.450 06/15/2034 30,000,000 34,179,660 AT+T INC 6.500 09/01/2037 98,494,000 111,750,997 ATHLON HOLDING 7.375 04/15/2021 1,500,000 1,481,250 ATKORE INTERNATIONAL INC 9.875 01/01/2018 375,000 397,500 ATLAS ENTERTAINMENT HOLDINGS 7.750 01/15/2021 1,425,000 1,360,875

148 New Jersey Division of Pensions and Benefits Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

ATLAS PIPELINE COMPANY 6.625% 10/01/2020 $1,000,000 1,002,500 ATLAS PIPELINE COMPANY 6.625 10/01/2020 75,000 75,187 ATWOOD OCEANICS INC 6.500 02/01/2020 1,000,000 1,037,500 AUDATEX NORTH AMERICA INC 6.000 06/15/2021 2,425,000 2,418,937 AURORA USA OIL + GAS INC 7.500 04/01/2020 475,000 465,500 AURORA USA OIL + GAS INC 9.875 02/15/2017 650,000 676,000 AVAYA INC 7.000 04/01/2019 750,000 676,875 AVAYA INC 9.000 04/01/2019 1,000,000 960,000 AVIATION CAPITAL GROUP 4.625 01/31/2018 1,000,000 984,375 AVIS BUDGET CAR/FINANCE 5.500 04/01/2023 2,290,000 2,209,850 AVIV HEALTHCARE PROPERTIES 7.750 02/15/2019 2,000,000 2,135,000 AXIALL CORP 4.875 05/15/2023 825,000 783,750 B/E AEROSPACE INC 5.250 04/01/2022 2,965,000 2,950,175 B/E AEROSPACE INC 6.875 10/01/2020 500,000 540,000 BAKERCORP 8.250 06/01/2019350,000 343,000 BALL CORP 5.000 03/15/2022 800,000 796,000 BANK OF AMERICA CORP 5.200 12/31/2049 875,000 822,500 BANK OF AMERICA CORP 8.000 12/31/2049 275,000 306,281 BANK ONE CAPITAL III 8.750 09/01/2030 2,050,000 2,740,255 BARCLAYS BANK PLC 7.625 11/21/2022 225,000 220,781 BARCLAYS BANK PLC 7.750 04/10/2023 850,000 845,750 BARMINCO FINANCE PROPERTY 9.000 06/01/2018 2,150,000 1,892,000 BARRY CALLEBAUT SERVICES 5.500 06/15/2023 200,000 201,308 BAUSCH + LOMB INC 9.875 11/01/2015 1,217,000 1,250,467 BAXTER INTERNATIONAL INC 1.850 06/15/2018 10,000,000 9,919,010 BAXTER INTERNATIONAL INC 2.400 08/15/2022 25,000,000 23,094,350 BAXTER INTERNATIONAL INC 3.200 06/15/2023 15,000,000 14,713,170 BAXTER INTERNATIONAL INC 5.375 06/01/2018 10,000,000 11,488,900 BAYLOR COLLEGE OF MEDIC 5.259 11/15/2046 4,000,000 3,283,200 BC LUXCO 1 SA 7.375 01/29/2020 150,000 142,500 BC MOUNTAIN LLC/BC MTN 7.000 02/01/2021 275,000 280,500 BEAZER HOMES USA 7.250 02/01/2023 850,000 858,500 BEAZER HOMES USA 8.125 06/15/2016 300,000 327,750 BECTON DICKINSON 3.250 11/12/2020 19,000,000 19,212,952 BELDEN INC 5.500 09/01/2022 1,000,000 982,500 BELLSOUTH CAP FUNDING 7.875 02/15/2030 24,000,000 29,742,864 BELLSOUTH CORP 6.550 06/15/2034 25,000,000 27,297,450 BELLSOUTH TELECOMMUNICATIONS 6.375 06/01/2028 22,600,000 25,510,789 BELO (A.H.) CORP 7.250 09/15/2027 1,000,000 1,022,500 BELO CORPORATION 7.750 06/01/2027 1,000,000 1,070,000 BERRY PLASTICS CORP 9.500 05/15/2018 2,000,000 2,175,000 BERRY PLASTICS CORP 9.750 01/15/2021 1,000,000 1,130,000 BEXAR COUNTY TX HOSPITAL DISTRICT 5.413 02/15/2040 10,000,000 9,665,100 BEXAR COUNTY TX HOSPITAL DISTRICT 6.904 02/15/2039 15,000,000 16,978,650 BI- LO FINANCE 9.250 02/15/2019 2,000,000 2,150,000 BIOMET INC 6.500 10/01/2020 4,400,000 4,389,000 BIOMET INC 6.500 08/01/2020 6,350,000 6,544,469 BK CAPITAL HOLDING 0.000 04/15/2019 2,500,000 2,121,875 BLOCK COMMUNICATIONS INC 7.250 02/01/2020 350,000 367,500

New Jersey Division of Pensions and Benefits 149 Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

BLOCK FINANCIAL LLC 5.500% 11/01/2022 $1,000,000 1,004,898 BLUESCOPE STEEL LTD 7.125 05/01/2018 250,000 253,750 BOART LONGYEAR MANAGEMENT 7.000 04/01/2021 1,910,000 1,800,175 BOE INTERMEDIATE HOLDING 9.000 11/01/2017 600,000 576,000 BOE MERGER CORP 9.500 11/01/2017 625,000 637,500 BOEING CO 7.950 08/15/2024 30,000,000 40,911,720 BOISE CASCADE COMPANY 6.375 11/01/2020 125,000 126,562 BOISE PAPER HOLDINGS 9.000 11/01/2017 75,000 79,125 BOMBARDIER INC 4.250 01/15/2016 200,000 204,500 BOMBARDIER INC 6.125 01/15/2023 2,410,000 2,391,925 BON TON DEPT STORES 8.000 06/15/2021 875,000 889,219 BONANZA CREEK ENERGY INC 6.750 04/15/2021 5,050,000 5,087,875 BRESNAN BROADBAND HOLDING 8.000 12/15/2018 225,000 245,250 BRICKMAN GROUP HOLDINGS 9.125 11/01/2018 1,175,000 1,257,250 BRIGHTSTAR CORP 9.500 12/01/2016 2,120,000 2,183,600 BRISTOW GROUP INC 6.250 10/15/2022 1,885,000 1,932,125 PROVINCE OF BRITISH COLUMBIA 2.000 10/23/2022 90,000,000 82,746,000 PROVINCE OF BRITISH COLUMBIA 2.650 09/22/2021 140,000,000 139,374,200 PROVINCE OF BRITISH COLUMBIA 6.500 01/15/2026 10,000,000 12,962,700 BRITISH TELECOM PLC 9.625 12/15/2030 37,550,000 56,529,422 BROADCOM CORP 2.500 08/15/2022 18,000,000 16,514,424 BROCADE COMMUNICATIONS 4.625 01/15/2023 650,000 604,500 BROCADE COMMUNICATIONS 6.875 01/15/2020 500,000 533,750 BROOKFIELD RESIDENTIAL 6.500 12/15/2020 250,000 251,875 BROWARD COUNTY FLORIDA 6.556 10/01/2040 15,000,000 15,836,850 BROWN SHOE CO INC 7.125 05/15/2019 175,000 182,875 BRUNSWICK CORP 4.625 05/15/2021 125,000 121,875 BRUNSWICK CORP 7.375 09/01/2023 1,000,000 1,045,000 BUILDERS FIRSTSOURCE INC 7.625 06/01/2021 300,000 290,250 BUILDING MATERIALS CORP 6.750 05/01/2021 1,875,000 1,992,187 BUILDING MATERIALS CORP 7.000 02/15/2020 300,000 319,500 BUILDING MATERIALS CORP 7.500 03/15/2020 375,000 401,250 BUMBLE BEE HOLDINGS INC. 9.625 03/15/2018 500,000 520,000 BUMBLE BEE HOLDINGS INC 9.000 12/15/2017 232,000 246,500 BURLINGTON NORTH SANTA FE 6.150 05/01/2037 15,000,000 17,415,075 BURLINGTON NORTH SANTA FE 6.750 03/15/2029 22,300,000 26,328,205 BURLINGTON NORTH SANTA FE 7.290 06/01/2036 10,000,000 12,863,260 BURLINGTON NORTH SANTA FE 8.125 04/15/2020 6,650,000 8,442,461 BURLINGTON COAT FACTORY 10.000 02/15/2019 994,000 1,098,370 BURLINGTON HOLDINGS 9.000 02/15/2018 325,000 333,125 BURLINGTON RESOURCES 8.200 03/15/2025 10,000,000 13,316,340 BURLINGTON RESOURCES 7.200 08/15/2031 20,000,000 25,829,700 BURLINGTON RESOURCES 7.400 12/01/2031 45,980,000 61,249,958 CABLEVISION SYSTEMS CORP 5.875 09/15/2022 1,500,000 1,451,250 CABLEVISION SYSTEMS CORP 7.750 04/15/2018 250,000 268,750 CABLEVISION SYSTEMS CORP 8.000 04/15/2020 4,050,000 4,414,500 CAESARS ENTERTAINMENT 8.500 02/15/2020 675,000 636,187 CAESARS ENTERTAINMENT 9.000 02/15/2020 250,000 238,125 CAESARS ENTERTAINMENT 10.000 12/15/2018 1,000,000 600,000

150 New Jersey Division of Pensions and Benefits Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

CAESARS ENTERTAINMENT 11.250% 06/01/2017 $3,275,000 3,410,094 CAESARS ENTERTAINMENT 12.750 04/15/2018 900,000 612,000 CAESARS OPERATING ESCROW 9.000 02/15/2020 1,975,000 1,886,125 CALCIPAR SA 6.875 05/01/2018 225,000 230,625 CALFRAC HOLDINGS LP 7.500 12/01/2020 150,000 148,500 CALIFORNIA ST PUBLIC WORKS BOARD 7.004 03/01/2035 10,000,000 11,239,100 CALPINE CORP 7.250 10/15/2017 247,000 257,497 CALPINE CORP 7.500 02/15/2021 2,505,000 2,674,087 CALPINE CORP 7.875 07/31/2020 1,795,000 1,947,575 CALPINE CORP 7.875 01/15/2023 250,000 268,750 CAMERON INTL CORP 6.375 07/15/2018 10,000,000 11,727,540 CAMPBELL SOUP CO 2.500 08/02/2022 15,000,000 13,678,590 CANADA GOVERNMENT 0.875 02/14/2017 25,000,000 24,877,500 CANADIAN NATIONAL RAILWAY 6.250 08/01/2034 19,000,000 23,684,127 CANADIAN NATIONAL RAILWAY 6.712 07/15/2036 37,000,000 48,616,224 CAPELLA HEALTHCARE 9.250 07/01/2017 1,000,000 1,060,000 CAPMARK MILITARY HOUSING TRUST 5.746 02/10/2052 64,060,499 52,664,777 CARGILL INC 7.250 11/01/2036 10,000,000 12,868,550 CARMIKE CINEMAS INC 7.375 05/15/2019 500,000 537,500 CARPENTER TECHNOLOGY 4.450 03/01/2023 1,000,000 974,775 CARRIZO OIL + GAS INC 8.625 10/15/2018 600,000 642,000 CARROLS RESTAURANT GROUP 11.250 05/15/2018 1,475,000 1,659,375 CASCADES INC 7.750 12/15/2017 425,000 443,062 CASE NEW HOLLAND INC 7.875 12/01/2017 2,270,000 2,570,775 CASELLA WASTE SYSTEMS IN 7.750 02/15/2019 1,000,000 950,000 CASTLE (AM) + CO 12.750 12/15/2016 150,000 172,500 CATALENT PHARMA SOLUTION 7.875 10/15/2018 4,250,000 4,281,875 CATALINA MARKETING CORP 10.500 10/01/2015 1,275,000 1,290,937 CATERPILLAR INC 7.900 12/15/2018 10,000,000 12,898,770 CB RICHARD ELLIS SERVICE 6.625 10/15/2020 1,000,000 1,055,000 CBRE SERVICES INC 5.000 03/15/2023 1,000,000 947,500 CBS CORP 7.875 07/30/2030 10,000,000 12,741,310 CBS CORP 7.875 09/01/2023 20,000,000 24,755,300 CCO HOLDINGS 5.125 02/15/2023 1,800,000 1,687,500 CCO HOLDINGS 5.250 09/30/2022 3,450,000 3,277,500 CCO HOLDINGS 5.250 03/15/2021 1,000,000 985,000 CCO HOLDINGS 5.750 09/01/2023 5,285,000 5,113,237 CCO HOLDINGS 5.750 01/15/2024 375,000 361,875 CCO HOLDINGS 7.000 01/15/2019 1,225,000 1,298,500 CCO HOLDINGS 7.250 10/30/2017 1,500,000 1,591,875 CCO HOLDINGS 7.375 06/01/2020 1,000,000 1,087,500 CANTOR COMMERICIAL REAL ESTATE 7.750 02/15/2018 400,000 402,000 CDW LLC/CDW FINANCE 8.000 12/15/2018 1,025,000 1,114,687 CDW LLC/CDW FINANCE 8.500 04/01/2019 700,000 752,500 CEDAR FAIR LP/CANADA S W 5.250 03/15/2021 1,000,000 960,000 CEDC FINANCIAL CORPORATION INC. 9.125 12/01/2016 900,000 726,003 CELANESE US HOLDINGS LLC 4.625 11/15/2022 2,215,000 2,173,469 CEMEX FINANCE LLC 9.375 10/12/2022 500,000 545,000 CEMEX FINANCE LLC 9.500 12/14/2016 175,000 185,062

New Jersey Division of Pensions and Benefits 151 Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

CEMEX SAB DE CV 5.276% 09/30/2015 $300,000 305,250 CEMEX SAB DE CV 5.875 03/25/2019 1,000,000 970,000 CEMEX SAB DE CV 9.000 01/11/2018 525,000 551,250 CENGAGE LEARNING ACQUISITION INC. 10.500 01/15/2015 25,000 2,125 CENGAGE LEARNING ACQUISITION INC. 11.500 04/15/2020 200,000 147,000 CENGAGE LEARNING ACQUISITION INC. 12.000 06/30/2019 825,000 90,750 CENTENE CORP 5.750 06/01/2017 200,000 209,500 CENTRAL GARDEN + PET CO 8.250 03/01/2018 1,425,000 1,442,812 CENTRAL UTAH WATER 5.700 10/01/2040 22,000,000 23,656,380 CENTURYLINK INC 5.625 04/01/2020 400,000 404,000 CENTURYLINK INC 5.800 03/15/2022 2,800,000 2,758,000 CENTURYLINK INC 7.600 09/15/2039 1,900,000 1,805,000 CENVEO CORP 8.875 02/01/2018 2,500,000 2,412,500 CEQUEL COMMUNICATION HOLDINGS 5.125 12/15/2021 100,000 94,000 CEQUEL COMMUNICATION HOLDINGS 6.375 09/15/2020 825,000 839,437 CERIDIAN CORP 8.875 07/15/2019 250,000 277,812 CERIDIAN CORP 11.000 03/15/2021 1,225,000 1,353,625 CF INDUSTRIES INC 3.450 06/01/2023 10,000,000 9,610,150 CF INDUSTRIES INC 7.125 05/01/2020 1,500,000 1,794,549 CGG 6.500 06/01/2021 200,000 202,000 CGG 7.750 05/15/2017 175,000 177,625 CGG 9.500 05/15/2016 1,000,000 1,043,750 CHAPARRAL ENERGY INC 7.625 11/15/2022 1,820,000 1,856,400 CHAPARRAL ENERGY INC 9.875 10/01/2020 375,000 416,250 CHC HELICOPTER SA 9.250 10/15/2020 3,725,000 3,818,125 CHC HELICOPTER SA 9.375 06/01/2021 800,000 792,000 CHECKERS DRIVE IN RESTAU 11.000 12/01/2017 125,000 130,625 CHECKOUT HOLDINGS CORP 0.000 11/15/2015 750,000 586,875 CHEMTURA CORP 7.875 09/01/2018 1,150,000 1,244,875 CHESAPEAKE ENERGY CORP 5.750 03/15/2023 2,500,000 2,531,250 CHESAPEAKE ENERGY CORP 6.875 11/15/2020 2,530,000 2,745,050 CHESAPEAKE ENERGY CORP 7.250 12/15/2018 500,000 557,500 CHESAPEAKE ENERGY CORP 9.500 02/15/2015 750,000 828,750 CHESAPEAKE OILFIELD OPERATING CO. 6.625 11/15/2019 225,000 222,750 CHESTER DOWNS + MARINA 9.250 02/01/2020 1,350,000 1,302,750 CHEVRON CORP 2.355 12/05/2022 45,000,000 42,319,800 CHICAGO IL O'HARE INTL AIRPORT 4.000 01/01/2030 10,000,000 8,801,900 CHOCTAW RESORT DEVELOPMENT 7.250 11/15/2019 1,025,000 994,250 CHOICE HOTELS INTL INC 5.750 07/01/2022 525,000 556,500 CHRYSLER GROUP 8.250 06/15/2021 700,000 772,625 CHS/COMMUNITY HEALTH SYSTEM 5.125 08/15/2018 2,250,000 2,283,750 CHS/COMMUNITY HEALTH SYSTEM 7.125 07/15/2020 500,000 515,000 CHS/COMMUNITY HEALTH SYSTEM 8.000 11/15/2019 2,775,000 2,951,906 CHURCH + DWIGHT CO INC 2.875 10/01/2022 10,000,000 9,442,740 CIGNA CORP 4.375 12/15/2020 10,000,000 10,637,970 CIMAREX ENERGY CO 5.875 05/01/2022 175,000 181,125 CINCINNATI BELL INC 8.375 10/15/2020 106,000 108,915 CINEMARK USA INC 5.125 12/15/2022 125,000 120,625 CIT GROUP INC 4.250 08/15/2017 1,450,000 1,457,250

152 New Jersey Division of Pensions and Benefits Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

CIT GROUP INC 5.000% 05/15/2017 $850,000 868,062 CIT GROUP INC 5.000 08/15/2022 6,300,000 6,252,750 CIT GROUP INC 5.250 04/01/2014 700,000 710,500 CIT GROUP INC 5.250 03/15/2018 2,200,000 2,260,500 CIT GROUP INC 6.625 04/01/2018 4,750,000 5,130,000 CITIGROUP INC 5.350 12/31/2049 1,525,000 1,429,687 CITYCENTER HOLDINGS 7.625 01/15/2016 400,000 422,000 CITYCENTER HOLDINGS 10.750 01/15/2017 574,691 620,666 CLAIRE'S STORES INC 6.125 03/15/2020 25,000 24,562 CLAIRE'S STORES INC 7.750 06/01/2020 100,000 96,750 CLEAN HARBORS INC 5.125 06/01/2021 1,700,000 1,712,750 CLEAN HARBORS INC 5.250 08/01/2020 1,500,000 1,522,500 CLEAR CHANNEL COMMUNICATIONS 9.000 03/01/2021 3,500,000 3,325,000 CLEAR CHANNEL COMMUNICATIONS 9.000 12/15/2019 75,000 72,750 CLEAR CHANNEL COMMUNICATIONS 10.750 08/01/2016 375,000 325,312 CLEAR CHANNEL COMMUNICATIONS 11.000 08/01/2016 650,000 573,625 CLEAR CHANNEL COMMUNICATIONS 11.250 03/01/2021 800,000 824,000 CLEAR CHANNEL WORLDWIDE 6.500 11/15/2022 2,025,000 2,075,625 CLEAR CHANNEL WORLDWIDE 6.500 11/15/2022 2,525,000 2,600,750 CLEAR CHANNEL WORLDWIDE 7.625 03/15/2020 3,135,000 3,229,050 CLEAR CHANNEL WORLDWIDE 7.625 03/15/2020 2,950,000 3,053,250 CLEARWIRE COMMUNICATIONS 12.000 12/01/2015 1,000,000 1,062,500 CLEARWIRE COMMUNICATIONS 12.000 12/01/2017 725,000 839,187 CLEAVER BROOKS INC 8.750 12/15/2019 900,000 945,000 CLECO POWER LLC 6.650 06/15/2018 10,000,000 11,965,760 CLEVELAND ELECTRIC COMPANY 5.700 04/01/2017 17,500,000 19,283,057 CMA CGM 8.500 04/15/2017 1,200,000 1,050,000 CMS ENERGY CORP 8.750 06/15/2019 600,000 774,104 CNG HOLDINGS INC 9.375 05/15/2020 1,425,000 1,368,000 CNH CAPITAL LLC 3.625 04/15/2018 225,000 214,312 COCA COLA CO/THE 1.150 04/01/2018 98,000,000 95,059,510 COCA COLA CO/THE 2.500 04/01/2023 20,000,000 18,934,720 COCA COLA CO/THE 3.150 11/15/2020 20,000,000 20,491,820 COEUR D ALENE MINES CORP 7.875 02/01/2021 325,000 320,125 COGECO CABLE INC 4.875 05/01/2020 400,000 389,000 COGENT COMMUNICATIONS GROUP 8.375 02/15/2018 300,000 327,000 COLGATE PALMOLIVE CO 2.950 11/01/2020 25,000,000 25,216,150 COLORADO SPRINGS CO UTILITIES 5.738 11/15/2050 17,000,000 18,422,220 COMCAST CABLE COMMUNICATIONS 9.455 11/15/2022 24,000,000 33,960,912 COMMERCIAL METALS CO 4.875 05/15/2023 625,000 575,000 COMMSCOPE HOLDINGS INC 6.625 06/01/2020 1,025,000 978,875 COMMSCOPE INC 8.250 01/15/2019 1,500,000 1,601,250 COMMUNITY CHOICE FINANCIAL 10.750 05/01/2019 450,000 430,875 COMPILER FINANCE SUB INC 7.000 05/01/2021 1,175,000 1,130,937 CONTINENTAL RUBBER CORP OF AMERICA 4.500 09/15/2019 2,000,000 2,059,350 CONAGRA FOODS INC 3.200 01/25/2023 5,000,000 4,781,355 CONCHO RESOURCES INC 5.500 04/01/2023 900,000 886,500 CONCHO RESOURCES INC 6.500 01/15/2022 2,395,000 2,532,712 CONCHO RESOURCES INC 7.000 01/15/2021 1,250,000 1,343,750

New Jersey Division of Pensions and Benefits 153 Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

CONNECTICUT STATE 5.027% 04/01/2024 $11,000,000 11,900,350 CONOCO FUNDING CO 7.250 10/15/2031 16,315,000 21,410,337 CONOCO INC 6.950 04/15/2029 65,000,000 82,790,760 CONSOLIDATED CONTAINER COMPANY 10.125 07/15/2020 2,675,000 2,808,750 CONSOL ENERGY INC 6.375 03/01/2021 150,000 149,250 CONSOL ENERGY INC 8.000 04/01/2017 750,000 789,375 CONSOL ENERGY INC 8.250 04/01/2020 1,000,000 1,047,500 CONSOLIDATEC COMMUNICATIONS 10.875 06/01/2020 725,000 819,250 CONSTELLATION BRANDS INC 3.750 05/01/2021 1,775,000 1,661,844 CONSTELLATION BRANDS INC 4.250 05/01/2023 1,265,000 1,193,844 CONSTELLATION ENTERPRISE 10.625 02/01/2016 275,000 281,875 CONTINENTAL RESOURCES 4.500 04/15/2023 950,000 923,875 CONTINENTAL RESOURCES 5.000 09/15/2022 4,820,000 4,904,350 CONTINENTAL RESOURCES 7.125 04/01/2021 150,000 165,000 CONTINENTAL RESOURCES 7.375 10/01/2020 500,000 555,000 CONTINTENTAL AIRLINES 7.566 09/15/2021 80,613 83,635 CONTINTENTAL AIRLINES 5.500 04/29/2022 50,000 51,625 CONTINTENTAL AIRLINES 6.125 04/29/2018 100,000 101,000 CONVATEC HEALTHCARE 10.500 12/15/2018 2,000,000 2,185,000 COOPER STANDARD AUTOMOTIVE 8.500 05/01/2018 750,000 795,000 COOPER STANDARD HOLDINGS 7.375 04/01/2018 2,000,000 1,985,000 COOPER TIRE + RUBBER CO 7.625 03/15/2027 750,000 723,750 COPANO ENERGY COMPANY 7.125 04/01/2021 1,000,000 1,112,500 CORPUS CHRISTI TEXAS UTILITY SYSTEM 6.243 07/15/2040 6,000,000 6,599,460 COTT BEVERAGES INC 8.125 09/01/2018 200,000 215,500 COVANTA HOLDING CORP 6.375 10/01/2022 2,000,000 2,021,198 COVANTA HOLDING CORP 7.250 12/01/2020 150,000 157,288 COVIDIEN INTL FINANCE SA 2.950 06/15/2023 20,000,000 18,906,640 COX COMMUNICATIONS INC 8.375 03/01/2039 10,000,000 13,553,510 CPI INTERNATIONAL INC 8.000 02/15/2018 450,000 463,500 CR BARD INC 4.400 01/15/2021 10,000,000 10,633,430 CRC HEALTH CORP 10.750 02/01/2016 600,000 609,750 CREDIT ACCEPTANCE 9.125 02/01/2017 1,425,000 1,506,937 CRESCENT RESOURCES LLC 10.250 08/15/2017 400,000 412,000 CRICKET COMMUNICATIONS 7.750 10/15/2020 460,000 441,600 CROSSTEX ENERGY 7.125 06/01/2022 175,000 176,750 CROWN AMERICA CAPITAL CORP. 4.500 01/15/2023 2,850,000 2,686,125 CROWN CASTLE INTL CORP 5.250 01/15/2023 2,615,000 2,510,400 CROWN MEDIA HOLDINGS INC 10.500 07/15/2019 1,400,000 1,554,000 CROWNROCK LP/CROWNROCK FINANCE 7.125 04/15/2021 600,000 588,000 CSC HOLDINGS LLC 7.625 07/15/2018 2,100,000 2,367,750 CSC HOLDINGS LLC 8.625 02/15/2019 1,200,000 1,386,000 CST BRANDS INC 5.000 05/01/2023 1,750,000 1,706,250 CSX CORP 6.150 05/01/2037 15,000,000 17,254,365 CSX CORP 6.220 04/30/2040 10,000,000 11,647,490 CSX CORP 7.375 02/01/2019 20,000,000 24,667,780 CVR REFINING 6.500 11/01/2022 225,000 220,500 CYRUSONE FINANCE 6.375 11/15/2022 175,000 179,375 DALLAS TX AREA RAPID TRANSIT SYSTEM 6.249 12/01/2034 20,000,000 22,754,800

154 New Jersey Division of Pensions and Benefits Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

DANA HOLDING CORP 6.750% 02/15/2021 $1,000,000 1,062,500 DARLING INTERNATIONAL INC 8.500 12/15/2018 780,000 862,875 DAVE + BUSTER'S INC. 11.000 06/01/2018 2,700,000 2,990,250 DAVE + BUSTER'S INC. 0.000 02/15/2016 475,000 368,125 DAVITA HEALTHCARE PARTNERS 5.750 08/15/2022 2,025,000 2,019,937 DAVITA HEALTHCARE PARTNERS 6.625 11/01/2020 1,250,000 1,325,000 DCP CORP 10.750 08/15/2015 1,500,000 1,560,000 DEERE + COMPANY 5.375 10/16/2029 30,000,000 34,560,390 DEL MONTE CORP 7.625 02/15/2019 3,500,000 3,596,250 DELPHI CORP 5.000 02/15/2023 2,105,000 2,162,887 DELUXE CORP 7.000 03/15/2019 1,250,000 1,318,750 DENBURY RESOURCES INC 4.625 07/15/2023 2,200,000 2,029,500 DENBURY RESOURCES INC 8.250 02/15/2020 250,000 270,000 DEVELOPMENT BANK OF JAPAN 5.125 02/01/2017 25,000,000 28,227,500 DEVON ENERGY CORPORATION 7.950 04/15/2032 30,000,000 39,265,260 DEVON FINANCING CO LLC 7.875 09/30/2031 51,000,000 66,037,860 DIAGEO CAPITAL PLC 1.125 04/29/2018 15,000,000 14,411,055 DIAGEO CAPITAL PLC 2.625 04/29/2023 15,000,000 13,954,335 DIAMOND OFFSHORE DRILLING 5.875 05/01/2019 10,000,000 11,752,550 DIAMOND RESORTS CORP 12.000 08/15/2018 1,775,000 1,943,625 DIGICEL GROUP LTD 8.250 09/30/2020 975,000 1,009,125 DIGICEL LIMITED 6.000 04/15/2021 1,500,000 1,417,500 DIGICEL LIMITED 8.250 09/01/2017 750,000 780,000 DIGITALGLOBE INC 5.250 02/01/2021 4,200,000 4,032,000 DINEEQUITY INC 9.500 10/30/2018 2,200,000 2,442,000 DIRECTBUY HOLDINGS INC. 12.000 10/31/2019 73,107 54,830 DISH DBS CORP 4.250 04/01/2018 1,350,000 1,323,000 DISH DBS CORP 4.625 07/15/2017 275,000 276,375 DISH DBS CORP 5.125 05/01/2020 2,150,000 2,107,000 DISH DBS CORP 6.625 10/01/2014 2,000,000 2,085,000 DISH DBS CORP 6.750 06/01/2021 6,550,000 6,959,375 DISH DBS CORP 7.000 10/01/2013 210,000 212,310 DISH DBS CORP 7.125 02/01/2016 1,600,000 1,732,000 DISH DBS CORP 7.875 09/01/2019 1,000,000 1,120,000 DISH DBS CORP 7.875 09/01/2019 525,000 588,000 DIST OF COLUMBIA WATER & SEWER 5.522 10/01/2044 3,000,000 3,335,490 DJO FINANCE CORPORATION 9.750 10/15/2017 1,000,000 1,020,000 DJO FINANCE CORPORATION 9.875 04/15/2018 1,250,000 1,306,250 DOMINION RESOURCES INC 5.950 06/15/2035 25,000,000 28,922,550 DOW CHEMICAL CO/THE 7.375 11/01/2029 21,000,000 26,445,783 DRILL RIGS HOLDING INC. 6.500 10/01/2017 325,000 324,187 DUFRY FINANCE 5.500 10/15/2020 1,850,000 1,854,888 DUKE ENERGY CAROLINAS 6.000 12/01/2028 19,000,000 21,223,494 DUKE ENERGY CORP 6.250 06/15/2018 12,500,000 14,610,775 DUKE ENERGY FLORIDA INC 4.550 04/01/2020 12,000,000 13,260,096 DUKE ENERGY FLORIDA INC 5.650 04/01/2040 15,000,000 17,063,205 DUKE ENERGY FLORIDA INC 6.350 09/15/2037 10,000,000 12,143,120 DUKE ENERGY INDIANA INC 6.450 04/01/2039 15,000,000 18,539,115 DUKE ENERGY OHIO INC 5.400 06/15/2033 10,000,000 10,137,910

New Jersey Division of Pensions and Benefits 155 Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

DUKE ENERGY OHIO INC 6.900% 06/01/2025 $10,000,000 12,373,400 DYNACAST INTL 9.250 07/15/2019 75,000 81,750 DYNEGY INC 5.875 06/01/2023 325,000 295,750 E TRADE FINANCIAL CORP 0.000 08/31/2019 145,000 178,259 E TRADE FINANCIAL CORP 6.000 11/15/2017 2,000,000 2,020,000 E TRADE FINANCIAL CORP 6.375 11/15/2019 5,825,000 5,912,375 E.I. DU PONT DE NEMOURS 6.000 07/15/2018 10,000,000 11,815,420 EAGLE MIDCO INC 9.000 06/15/2018 100,000 97,500 EAGLE ROCK ENTERTAINMENT PARTNERS 8.375 06/01/2019 500,000 508,750 EAGLE SPINCO INC 4.625 02/15/2021 2,650,000 2,544,000 EARTHLINK INC 7.375 06/01/2020 250,000 240,000 EARTHLINK INC 8.875 05/15/2019 450,000 437,625 EASTMAN CHEMICAL CO 4.500 01/15/2021 10,000,000 10,496,010 EDISON MISSION ENERGY 7.500 06/15/2013 275,000 154,687 EKSPORTFINANS ASA 2.375 05/25/2016 10,000,000 9,575,000 EKSPORTFINANS ASA 5.500 06/26/2017 25,000,000 25,875,000 EL PASO LLC 7.000 06/15/2017 3,995,000 4,343,200 EL PASO LLC 7.250 06/01/2018 1,500,000 1,661,587 ELI LILLY + CO 5.500 03/15/2027 73,750,000 84,919,806 EMC CORP 1.875 06/01/2018 100,000,000 98,850,300 EMDEON INC 11.000 12/31/2019 1,425,000 1,606,687 ENCANA CORP 6.500 02/01/2038 10,000,000 11,111,280 ENCANA CORP 6.625 08/15/2037 20,000,000 22,358,980 ENDO HEALTH SOLUTIONS INC 7.000 12/15/2020 1,000,000 1,003,750 ENDO HEALTH SOLUTIONS INC 7.000 07/15/2019 250,000 252,500 ENDO HEALTH SOLUTIONS INC 7.250 01/15/2022 1,225,000 1,234,187 ENERGY FUTURE HOLDINGS 10.875 11/01/2017 418,000 341,715 ENERGY FUTURE HOLDINGS 6.875 08/15/2017 375,000 380,625 ENERGY FUTURE HOLDINGS 10.000 12/01/2020 174,000 190,530 ENERGY FUTURE HOLDINGS 10.000 12/01/2020 3,265,000 3,567,012 ENERGY FUTURE HOLDINGS 11.250 12/01/2018 635,933 537,363 ENERGY FUTURE HOLDINGS 12.250 03/01/2022 1,975,000 2,182,375 ENERGY TRANSFER EQUITY 7.500 10/15/2020 450,000 491,625 ENERGY XXI GULF COAST INC 9.250 12/15/2017 3,625,000 3,978,438 ENERGYSOLUTIONS INC/LLC 10.750 08/15/2018 4,750,000 5,118,125 ENTERGY ARKANSAS INC 3.050 06/01/2023 10,000,000 9,538,090 ENTERGY GULF STATES LA 6.000 05/01/2018 20,000,000 22,770,900 ENTERGY TEXAS INC 7.125 02/01/2019 20,000,000 23,853,360 ENTRAVISION COMMUNICATIONS 8.750 08/01/2017 633,000 674,936 ENVISION HEALTHCARE CORP 8.125 06/01/2019 1,000,000 1,062,500 ENVISION HEALTHCARE HOLDINGS 9.250 10/01/2017 2,500,000 2,531,250 EP ENERGY & EVEREST AQUISITON 6.875 05/01/2019 750,000 800,625 EP ENERGY & EVEREST AQUISITON 7.750 09/01/2022 500,000 535,000 EP ENERGY & EVEREST AQUISITON 9.375 05/01/2020 3,000,000 3,375,000 EP ENERGY & EVEREST AQUISITON 8.125 12/15/2017 1,564,342 1,595,629 EPR PROPERTIES 7.750 07/15/2020 1,000,000 1,135,469 EQUINIX INC 4.875 04/01/2020 1,275,000 1,249,500 EQUINIX INC 5.375 04/01/2023 4,675,000 4,581,500 EQUINIX INC 7.000 07/15/2021 915,000 992,775

156 New Jersey Division of Pensions and Benefits Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

ERICKSON AIR CRANE INC 8.250% 05/01/2020 $1,800,000 1,750,500 ESSAR STEEL ALGOMA INC 9.375 03/15/2015 150,000 142,500 ESSAR STEEL ALGOMA INC 9.875 06/15/2015 250,000 192,500 ESTERLINE TECHNOLOGIES 7.000 08/01/2020 750,000 804,375 EV ENERGY PARTNERS/FINANCE 8.000 04/15/2019 100,000 101,000 EXIDE TECHNOLOGIES 8.625 02/01/2018 500,000 305,000 EXOPACK HOLDNG CORP. 10.000 06/01/2018 475,000 480,937 EXPRO FINANCE LUXEMBOURG 8.500 12/15/2016 1,375,000 1,443,750 EXTERRAN PARTNERS 6.000 04/01/2021 1,675,000 1,649,875 FAGE DAIRY INDUSTRIES 9.875 02/01/2020 2,025,000 2,181,937 FED HM LN PC POOL 170225 8.000 05/01/2017 2,155 2,268 FED HM LN PC POOL C00502 6.500 02/01/2027 88,851 98,534 FED HM LN PC POOL C00503 6.500 03/01/2027 328,665 366,413 FED HM LN PC POOL C00527 6.500 04/01/2027 271,778 301,965 FED HM LN PC POOL C00547 6.500 08/01/2027 854,633 979,680 FED HM LN PC POOL C00626 6.000 06/01/2028 532,809 591,168 FED HM LN PC POOL C00643 6.500 08/01/2028 217,552 249,926 FED HM LN PC POOL C00680 6.000 11/01/2028 368,413 408,765 FED HM LN PC POOL C00690 6.000 12/01/2028 582,298 646,077 FED HM LN PC POOL C00716 6.000 02/01/2029 2,691,727 2,986,553 FED HM LN PC POOL C18120 6.000 11/01/2028 748,436 830,413 FED HM LN PC POOL C19256 6.000 12/01/2028 115,202 127,820 FED HM LN PC POOL C21002 6.000 01/01/2029 315,620 350,190 FED HM LN PC POOL C21724 6.000 02/01/2029 108,191 118,795 FED HM LN PC POOL C22140 6.000 02/01/2029 120,508 130,734 FED HM LN PC POOL C22347 6.000 02/01/2029 407,655 452,305 FED HM LN PC POOL C80378 6.500 01/01/2026 584,892 655,177 FED HM LN PC POOL D28992 7.500 01/01/2023 103,036 115,785 FED HM LN PC POOL D35835 6.500 06/01/2023 42,349 47,683 FED HM LN PC POOL D66640 6.500 12/01/2025 195,139 216,265 FED HM LN PC POOL D67214 6.500 01/01/2026 208,596 230,749 FED HM LN PC POOL D68718 6.500 02/01/2026 110,383 122,438 FED HM LN PC POOL D78434 6.500 02/01/2027 213,225 237,499 FED HM LN PC POOL D78438 7.000 02/01/2027 35,639 41,552 FED HM LN PC POOL E00721 6.500 07/01/2014 62,436 63,649 FED HM LN PC POOL E00746 7.000 09/01/2014 11,124 11,382 FED HM LN PC POOL E78431 7.000 09/01/2014 26,144 26,874 FED HM LN PC POOL E78663 6.500 10/01/2014 39,760 40,749 FED HM LN PC POOL G00444 6.500 02/01/2026 401,598 459,344 FED HM LN PC POOL G00445 6.500 02/01/2026 473,637 541,741 FED HM LN PC POOL G00678 6.500 02/01/2027 203,025 232,218 FEDERAL HOME LOAN BANKS 5.065 10/20/2015 4,506,097 4,802,904 FEDEX CORP 2.700 04/15/2023 5,000,000 4,608,775 FIDELITY + GUARANTY LIFE 6.375 04/01/2021 2,400,000 2,328,000 FIESTA RESTAURANT GROUP 8.875 08/15/2016 125,000 133,125 FIFTH + PACIFIC CO INC 10.500 04/15/2019 150,000 163,875 FIRST DATA CORPORATION 6.750 11/01/2020 3,750,000 3,815,625 FIRST DATA CORPORATION 7.375 06/15/2019 1,075,000 1,104,563 FIRST DATA CORPORATION 8.250 01/15/2021 2,500,000 2,550,000

New Jersey Division of Pensions and Benefits 157 Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

FIRST DATA CORPORATION 10.625% 06/15/2021 $850,000 839,375 FIRST DATA CORPORATION 11.250 03/31/2016 666,000 651,015 FIRST DATA CORPORATION 11.250 01/15/2021 750,000 748,125 FIRST DATA CORPORATION 11.750 08/15/2021 2,350,000 2,115,000 FIRST DATA CORPORATION 12.625 01/15/2021 6,050,000 6,397,875 FIRST QUALITY FINANCE CO 4.625 05/15/2021 2,840,000 2,698,000 FIRSTENERGY CORP 2.750 03/15/2018 15,000,000 14,603,055 FIRSTENERGY CORP 7.375 11/15/2031 20,000,000 21,091,920 FLORIDA POWER + LIGHT 2.750 06/01/2023 55,000,000 52,874,085 FLORIDA POWER + LIGHT 5.950 10/01/2033 30,000,000 36,474,030 FLORIDA ST DEP 7.045 07/01/2029 10,250,000 11,364,277 FLORIDA ST DEPT. OF MGMT SERVICES 6.825 08/01/2029 15,000,000 17,294,400 FLORIDA ST HURRICANE CATASTROPHE 2.995 07/01/2020 25,000,000 23,426,000 FMG RESOURCES AUG 2006 6.000 04/01/2017 350,000 340,375 FMG RESOURCES AUG 2006 6.875 04/01/2022 1,275,000 1,236,750 FMG RESOURCES AUG 2006 7.000 11/01/2015 500,000 505,000 FMG RESOURCES AUG 2006 8.250 11/01/2019 2,250,000 2,317,500 FNMA POOL 050726 7.000 05/01/2023 88,667 101,752 FNMA POOL 050747 7.000 06/01/2023 291,847 334,917 FNMA POOL 050965 6.500 01/01/2024 517,035 584,926 FNMA POOL 125229 6.500 09/01/2023 78,171 88,435 FNMA POOL 218769 7.000 06/01/2023 227,805 261,423 FNMA POOL 250004 6.500 04/01/2024 600,211 681,806 FNMA POOL 250485 6.500 02/01/2026 275,780 314,300 FNMA POOL 250780 7.000 12/01/2026 161,788 187,902 FNMA POOL 250820 7.000 01/01/2027 68,933 80,059 FNMA POOL 253702 6.000 03/01/2016 361,465 375,500 FNMA POOL 254198 6.000 02/01/2032 2,233,020 2,459,263 FNMA POOL 254262 6.000 04/01/2032 1,138,181 1,253,845 FNMA POOL 313210 7.000 12/01/2026 128,337 149,051 FNMA POOL 313270 7.000 01/01/2027 59,755 69,400 FNMA POOL 313340 6.500 02/01/2027 938,080 1,069,110 FNMA POOL 323789 6.000 06/01/2014 247,786 251,352 FNMA POOL 325360 6.500 01/01/2026 198,142 218,831 FNMA POOL 331912 6.500 12/01/2025 99,196 109,794 FNMA POOL 356246 7.000 12/01/2026 76,328 88,648 FNMA POOL 356254 7.000 12/01/2026 9,163 10,641 FNMA POOL 356705 7.000 09/01/2026 46,805 52,459 FNMA POOL 480414 6.000 04/01/2014 38,315 38,728 FNMA POOL 488143 6.000 03/01/2014 44,200 44,612 FNMA POOL 545063 6.000 06/01/2031 1,107,050 1,219,214 FNMA POOL 545567 6.000 04/01/2032 1,471,988 1,621,126 FNMA POOL 567666 6.000 02/01/2016 189,850 196,324 FNMA POOL 615045 6.000 01/01/2032 440,246 484,850 FNMA POOL 617088 6.000 12/01/2031 772,043 838,822 FNMA POOL 619030 6.000 01/01/2032 284,524 313,351 FNMA POOL 634473 6.000 03/01/2032 117,484 129,423 FORBES ENERGY SERVICES 9.000 06/15/2019 590,000 581,150 FORD MOTOR COMPANY 7.450 07/16/2031 1,000,000 1,197,215

158 New Jersey Division of Pensions and Benefits Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

FORD MOTOR COMPANY 9.215% 09/15/2021 $1,000,000 1,262,979 FORD MOTOR CREDIT CO LLC 3.875 01/15/2015 200,000 206,149 FORESIGHT ENERGY LL/CORP 9.625 08/15/2017 1,700,000 1,785,000 FOREST OIL CORPORATION 7.250 06/15/2019 1,220,000 1,146,800 FQM AKUBRA INC 7.500 06/01/2021 1,150,000 1,101,125 FTS INTERNATIONAL SERVICES 8.125 11/15/2018 49,000 50,838 FREDDIE MAC 5.500 06/15/2034 16,693,610 17,161,315 FREDDIE MAC 5.500 10/15/2034 16,879,313 17,084,329 FREDDIE MAC 5.500 01/15/2035 4,304,891 4,345,564 FREDDIE MAC 5.500 06/15/2035 12,574,351 12,802,512 FREEPORT MCMORAN 3.550 03/01/2022 50,000,000 45,417,850 FREESCALE SEMICONDUCTOR 5.000 05/15/2021 500,000 475,000 FRESENIUS MEDICAL CARE 5.625 07/31/2019 1,000,000 1,040,000 FRESENIUS MEDICAL CARE 5.875 01/31/2022 300,000 315,750 FRESENIUS MEDICAL CARE 6.500 09/15/2018 500,000 543,750 FRESENIUS US FINANCE II 9.000 07/15/2015 2,100,000 2,320,500 FRONTIER COMMUNICATIONS 7.125 03/15/2019 2,250,000 2,368,125 FRONTIER COMMUNICATIONS 7.125 01/15/2023 125,000 124,375 FRONTIER COMMUNICATIONS 7.625 04/15/2024 1,200,000 1,203,000 FRONTIER COMMUNICATIONS 8.125 10/01/2018 425,000 466,437 FRONTIER COMMUNICATIONS 8.500 04/15/2020 50,000 55,125 FRONTIER COMMUNICATIONS 9.250 07/01/2021 1,000,000 1,142,500 FTI CONSULTING INC 6.750 10/01/2020 100,000 105,250 GANNETT CO INC 9.375 11/15/2017 1,600,000 1,700,000 GARDA WORLD SECURITY CORP 9.750 03/15/2017 375,000 396,562 GARDA WORLD SECURITY CORP 9.750 03/15/2017 225,000 237,937 GCI INC 6.750 06/01/2021 25,000 23,375 GCI INC 8.625 11/15/2019 250,000 256,250 GENCORP INC 7.125 03/15/2021 2,825,000 2,923,875 GENERAL ELECTRIC CAPITAL CORP. 5.250 12/31/2049 4,000,000 3,820,000 GENERAL ELECTRIC CAPITAL CORP. 5.375 10/20/2016 10,000,000 11,158,170 GENERAL ELECTRIC CAPITAL CORP. 5.550 05/04/2020 25,000,000 28,239,475 GENERAL ELECTRIC CAPITAL CORP. 5.625 05/01/2018 15,000,000 17,205,060 GENERAL ELECTRIC CAPITAL CORP. 6.250 12/31/2049 2,000,000 2,125,000 GENERAL ELECTRIC CAPITAL CORP. 6.750 03/15/2032 40,000,000 47,961,000 GENERAL ELECTRIC CAPITAL CORP. 7.125 12/31/2049 1,150,000 1,299,500 GENERAL ELECTRIC CO 5.250 12/06/2017 35,000,000 39,520,145 GENERAL MOTORS FINANCIAL CO. 2.750 05/15/2016 150,000 147,562 GENERAL MOTORS FINANCIAL CO. 3.250 05/15/2018 1,600,000 1,556,000 GENERAL MOTORS FINANCIAL CO. 4.250 05/15/2023 3,125,000 2,910,156 GENESIS ENERGY 5.750 02/15/2021 3,700,000 3,607,500 GENESIS ENERGY 7.875 12/15/2018 1,185,000 1,267,950 GENON ENERGY INC 7.875 06/15/2017 2,415,000 2,565,938 GENON ENERGY INC 9.500 10/15/2018 2,800,000 3,108,000 GENON ENERGY INC 9.875 10/15/2020 575,000 632,500 GENWORTH HOLDINGS INC 6.150 11/15/2066 1,775,000 1,539,813 GEO GROUP INC/THE 5.125 04/01/2023 2,900,000 2,769,500 GEO GROUP INC/THE 6.625 02/15/2021 400,000 420,000 GEORGE WASHINGTON UNIVERSITY 3.485 09/15/2022 15,000,000 14,683,125

New Jersey Division of Pensions and Benefits 159 Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

GESTAMP FUND 5.625% 05/31/2020 $275,000 261,250 GETCO FINANCE ESCROW 8.250 06/15/2018 375,000 354,375 GIBRALTAR INDUSTRIES INC 6.250 02/01/2021 2,125,000 2,199,375 GIBSON ENERGY INC 6.750 07/15/2021 1,000,000 997,500 GLAXOSMITHKLINE CAPITAL INC. 0.700 03/18/2016 20,000,000 19,816,540 GLAXOSMITHKLINE CAPITAL INC. 2.800 03/18/2023 20,000,000 19,033,020 GLAXOSMITHKLINE CAPITAL INC. 1.500 05/08/2017 20,000,000 19,864,340 GLOBAL BRASS AND COPPER 9.500 06/01/2019 800,000 856,000 GNMA POOL 175343 6.500 06/15/2029 758,391 851,268 GNMA POOL 412571 7.000 03/15/2026 142,933 166,279 GNMA POOL 415137 6.500 03/15/2026 128,846 144,143 GNMA POOL 417239 7.000 02/15/2026 142,532 165,812 GNMA POOL 417390 7.000 05/15/2026 178,059 207,142 GNMA POOL 417425 7.000 05/15/2026 115,812 134,728 GNMA POOL 423799 7.000 06/15/2026 180,144 209,567 GNMA POOL 434344 6.500 05/15/2029 1,025,180 1,181,067 GNMA POOL 434381 6.500 06/15/2029 760,011 875,787 GNMA POOL 434395 6.500 06/15/2029 996,098 1,147,712 GNMA POOL 447918 6.500 05/15/2028 316,875 364,335 GNMA POOL 458832 6.500 03/15/2028 451,371 504,285 GNMA POOL 458878 6.500 04/15/2028 141,337 156,750 GNMA POOL 461517 6.500 04/15/2028 194,614 215,533 GNMA POOL 462497 6.500 01/15/2028 174,410 194,370 GNMA POOL 465523 6.500 04/15/2028 310,494 345,551 GNMA POOL 472923 7.500 11/15/2029 20,404 22,258 GNMA POOL 474160 6.500 04/15/2028 186,356 207,445 GNMA POOL 480400 6.500 08/15/2028 590,183 657,891 GNMA POOL 482104 6.500 08/15/2028 511,152 570,890 GNMA POOL 482576 6.500 06/15/2029 46,689 53,778 GNMA POOL 486760 6.500 12/15/2028 405,145 466,910 GNMA POOL 486958 6.500 02/15/2029 382,361 440,510 GNMA POOL 487035 6.500 03/15/2029 803,308 925,286 GNMA POOL 487601 6.500 04/15/2029 1,249,686 1,444,946 GNMA POOL 487602 6.500 05/15/2029 1,169,127 1,346,969 GNMA POOL 487616 6.500 06/15/2029 2,060,287 2,382,283 GNMA POOL 490228 7.000 08/15/2029 27,356 31,998 GNMA POOL 491467 6.500 05/15/2029 561,335 646,571 GNMA POOL 491479 6.500 06/15/2029 726,626 816,671 GNMA POOL 492738 7.000 06/15/2029 227,224 265,779 GNMA POOL 493850 6.500 04/15/2029 289,747 333,743 GNMA POOL 502710 7.000 06/15/2029 49,460 57,852 GNMA POOL 506479 6.500 04/15/2029 322,276 358,413 GNMA POOL 506571 6.500 05/15/2029 474,236 529,879 GNMA POOL 507844 6.500 05/15/2029 663,912 744,200 GNMA POOL 509295 6.500 05/15/2029 775,015 893,257 GNMA POOL 509337 6.500 06/15/2029 973,593 1,125,319 GNMA POOL 529217 7.500 01/15/2030 56,916 62,622 GNMA POOL 780509 6.500 02/15/2027 634,470 682,202 GNMA POOL 780615 6.500 08/15/2027 347,530 392,772

160 New Jersey Division of Pensions and Benefits Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

GOOD SAM ENTERPRISES LLC 11.500% 12/01/2016 $1,700,000 1,810,500 GRAFTECH INTERNATIONAL 6.375 11/15/2020 200,000 201,500 GRAPHIC PACKAGING INTL 7.875 10/01/2018 525,000 567,000 GRATON ECONOMIC DEV AUTHORITY 9.625 09/01/2019 1,475,000 1,615,125 GRAY TELEVISION INC 7.500 10/01/2020 450,000 459,000 GREAT LAKES DREDGE+DOCK 7.375 02/01/2019 75,000 77,719 GREEKTOWN SUPERHOLDINGS 13.000 07/01/2015 800,000 850,000 GREEKTOWN SUPERHOLDINGS 13.000 07/01/2015 850,000 903,125 GREIF INC 7.750 08/01/2019 100,000 114,500 GRIFFEY INTERMEDIATE INC. 7.000 10/15/2020 2,750,000 2,653,750 GRIFFON CORPORATION 7.125 04/01/2018 750,000 785,625 GRIFOLS INC 8.250 02/01/2018 2,925,000 3,144,375 GRUPO FAMSA SA DE CV 7.250 06/01/2020 2,000,000 1,927,894 GTE CORP 8.750 11/01/2021 20,000,000 26,290,780 GULFPORT ENERGY CORP 7.750 11/01/2020 150,000 151,875 GWR OPERATING PARTNERSHP 10.875 04/01/2017 400,000 437,000 GYMBOREE CORP 9.125 12/01/2018 1,000,000 940,000 H+E EQUIPMENT SERVICES 7.000 09/01/2022 325,000 338,813 HALCON RESOURCES CORP 8.875 05/15/2021 3,275,000 3,176,750 HALCON RESOURCES CORP 9.750 07/15/2020 2,000,000 1,995,000 HANESBRANDS INC 6.375 12/15/2020 2,320,000 2,473,700 HANESBRANDS INC 8.000 12/15/2016 2,000,000 2,125,000 HAPAG LLOYD AG 9.750 10/15/2017 300,000 307,500 HARBINGER GROUP INC 7.875 07/15/2019 2,100,000 2,147,250 HARLAND CLARKE HOLDINGS 9.750 08/01/2018 550,000 572,000 HAWAIIAN AIRLINES 4.950 01/15/2022 100,000 94,750 HAWK ACQUISITION SUB INC 4.250 10/15/2020 3,050,000 2,916,563 HCA HOLDINGS INC 6.250 02/15/2021 2,350,000 2,397,000 HCA HOLDINGS INC 7.750 05/15/2021 3,900,000 4,212,000 HCA HOLDINGS INC 4.750 05/01/2023 2,100,000 2,010,750 HCA HOLDINGS INC 5.875 03/15/2022 3,975,000 4,079,344 HCA HOLDINGS INC 5.875 05/01/2023 2,525,000 2,531,313 HCA HOLDINGS INC 6.375 01/15/2015 1,375,000 1,440,313 HCA HOLDINGS INC 6.500 02/15/2020 1,950,000 2,109,656 HCA HOLDINGS INC 7.190 11/15/2015 2,750,000 2,970,000 HCA HOLDINGS INC 7.250 09/15/2020 1,500,000 1,610,625 HCA HOLDINGS INC 7.500 02/15/2022 1,675,000 1,855,063 HCA HOLDINGS INC 7.875 02/15/2020 1,175,000 1,265,328 HCA HOLDINGS INC 8.000 10/01/2018 1,000,000 1,148,750 HCA HOLDINGS INC 8.360 04/15/2024 300,000 339,000 HCA HOLDINGS INC 8.500 04/15/2019 1,970,000 2,114,056 HD SUPPLY INC 7.500 07/15/2020 4,000,000 4,050,000 HD SUPPLY INC 8.125 04/15/2019 1,000,000 1,095,000 HD SUPPLY INC 10.500 01/15/2021 3,750,000 3,881,250 HD SUPPLY INC 11.000 04/15/2020 2,175,000 2,533,875 HD SUPPLY INC 11.500 07/15/2020 2,250,000 2,610,000 HEADWATERS INC 7.625 04/01/2019 150,000 156,750 HEALTH MANAGEMENT ASSOCIATION 7.375 01/15/2020 1,250,000 1,370,313 HEALTH NET INC 6.375 06/01/2017 750,000 779,063

New Jersey Division of Pensions and Benefits 161 Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

HEALTHSOUTH CORP 7.250% 10/01/2018 $243,000 259,403 HECLA MINING CO 6.875 05/01/2021 2,275,000 2,110,063 HEINZ (H.J.) FINANCE CO 7.125 08/01/2039 1,500,000 1,590,000 HELIX ENERGY SOLUTIONS 9.500 01/15/2016 1,000,000 1,027,000 HERCULES OFFSHORE INC 7.125 04/01/2017 3,000,000 3,187,500 HERCULES OFFSHORE INC 8.750 07/15/2021 140,000 140,000 HERCULES OFFSHORE INC 10.250 04/01/2019 325,000 354,250 HERCULES OFFSHORE LLC 10.500 10/15/2017 2,450,000 2,615,375 HERSHEY COMPANY 2.625 05/01/2023 10,000,000 9,471,010 HERTZ CORP 5.875 10/15/2020 200,000 206,000 HERTZ CORP 6.250 10/15/2022 75,000 78,281 HERTZ CORP 6.750 04/15/2019 1,325,000 1,401,188 HERTZ CORP 7.375 01/15/2021 1,075,000 1,163,688 HESS CORP 7.875 10/01/2029 66,000,000 82,464,954 HESS CORP 8.125 02/15/2019 25,000,000 31,337,050 HEWLETT PACKARD CO 2.650 06/01/2016 8,000,000 8,154,400 HEWLETT PACKARD CO 3.750 12/01/2020 10,000,000 9,679,590 HEXION US FINANCE CORP. 8.875 02/01/2018 2,000,000 2,040,000 HEXION US FINANCE CORP. 9.000 11/15/2020 1,750,000 1,671,250 HEXION US FINANCE CORP 6.625 04/15/2020 750,000 748,125 HEXION US FINANCE CORP 6.625 04/15/2020 1,800,000 1,795,500 HILAND PARTNERS 7.250 10/01/2020 275,000 283,250 HILCORP ENERGY 7.625 04/15/2021 3,890,000 4,123,400 HILLMAN GROUP INC 10.875 06/01/2018 350,000 378,875 HISTORIC TW INC 9.150 02/01/2023 12,000,000 16,293,120 HOA RESTAURANT GROUP 11.250 04/01/2017 175,000 175,000 HOLLY ENERGY PARTNERS LP 6.500 03/01/2020 2,140,000 2,156,050 HOLLY ENERGY PARTNERS LP 8.250 03/15/2018 375,000 396,563 HOLOGIC INC 6.250 08/01/2020 2,527,000 2,620,183 HONOLULU CITY & CNTY WASTEWATER 6.121 07/01/2040 15,000,000 16,619,850 HORIZON LINES LLC 11.000 10/15/2016 1,349,000 1,342,255 HORIZON LINES LLC 13.000 10/15/2016 380,367 353,741 HUB INTERNATIONAL LTD 8.125 10/15/2018 6,100,000 6,344,000 HUGHES SATELITE SYSTEMS 6.500 06/15/2019 150,000 159,000 HUGHES SATELLITE SYSTEMS 7.625 06/15/2021 4,250,000 4,515,625 HUNTINGTON INGALLS INDUSTRIES 7.125 03/15/2021 750,000 806,250 HUNTSMAN INTERNATIONAL 4.875 11/15/2020 1,600,000 1,580,000 HUNTSMAN INTERNATIONAL 8.625 03/15/2020 1,250,000 1,359,375 HUNTSMAN INTERNATIONAL 8.625 03/15/2021 1,000,000 1,097,500 HYDRO QUEBEC 8.050 07/07/2024 33,000,000 45,385,923 HYDRO QUEBEC 8.500 12/01/2029 69,000,000 102,041,685 HYDRO QUEBEC 9.500 11/15/2030 13,000,000 20,820,982 HYVA GLOBAL 8.625 03/24/2016 250,000 235,000 IAC/INTERACTIVECORP 4.750 12/15/20225,700,000 5,386,500 IAMGOLD CORP 6.750 10/01/2020 600,000 507,000 IASIS HEALTHCARE 8.375 05/15/2019 3,750,000 3,785,156 IBERDROLA INTERNATIONAL 6.750 07/15/2036 20,000,000 20,745,760 IBM CORP 1.625 05/15/2020 20,000,000 18,722,540 IBM CORP 6.220 08/01/2027 10,000,000 12,324,980

162 New Jersey Division of Pensions and Benefits Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

IBM CORP 6.500% 01/15/2028 $24,000,000 30,204,336 IBM CORP 7.000 10/30/2025 15,000,000 19,708,305 IBM CORP 8.375 11/01/2019 23,000,000 30,809,673 INTL BANK FOR RECONSTRUCTION 0.000 07/15/2017 23,500,000 21,786,145 ICAHN ENTERPRISES 7.750 01/15/2016 1,500,000 1,548,750 ICAHN ENTERPRISES 8.000 01/15/2018 2,775,000 2,913,750 ICON HEALTH + FITNESS 11.875 10/15/2016 150,000 123,000 IDEARC INC 8.000 11/15/2016 365,000 — IFM US COLONIAL PIPELINE 6.450 05/01/2021 125,000 133,951 IGATE CORP 9.000 05/01/2016 1,375,000 1,430,000 IGLOO HOLDINGS CORP 8.250 12/15/2017 3,175,000 3,238,500 ILFC E CAPITAL TRUST 1.826 12/21/2065 100,000 85,000 ILLINOIS STATE 5.000 07/01/2028 11,000,000 11,260,700 IMMUCOR INC 11.125 08/15/2019 1,000,000 1,085,000 IMS HEALTH INC 6.000 11/01/2020 2,500,000 2,543,750 INC RESEARCH LLC 11.500 07/15/2019 475,000 510,625 INDIANA ST FINANCIAL AUTH REVENUE 6.596 02/01/2039 5,000,000 6,144,950 INEOS FINANCE PLC 7.500 05/01/2020 250,000 265,625 INEOS FINANCE PLC 8.375 02/15/2019 500,000 546,250 INEOS GROUP HOLDINGS SA 6.125 08/15/2018 2,375,000 2,268,125 INERGY FINANCIAL CORP 7.000 10/01/2018 1,000,000 1,005,000 INERGY MIDSTREAM 6.000 12/15/2020 1,250,000 1,206,250 INFOR US INC 9.375 04/01/2019 3,275,000 3,549,281 ING US INC 5.650 05/15/2053 2,000,000 1,860,000 INMARSAT FINANCE PLC 7.375 12/01/2017 1,000,000 1,040,000 INMET MINING CORP 8.750 06/01/2020 3,000,000 3,067,500 INTELSAT JACKSON HOLDINGS 5.500 08/01/2023 1,325,000 1,245,500 INTELSAT JACKSON HOLDINGS 6.625 12/15/2022 1,500,000 1,455,000 INTELSAT JACKSON HOLDINGS 7.250 10/15/2020 1,650,000 1,732,500 INTELSAT JACKSON HOLDINGS 7.250 04/01/2019 1,350,000 1,412,438 INTELSAT JACKSON HOLDINGS 7.500 04/01/2021 500,000 525,000 INTELSAT JACKSON HOLDINGS 8.500 11/01/2019 1,400,000 1,508,500 INTELSAT LUXEMBOURG SA 6.750 06/01/2018 300,000 302,250 INTELSAT LUXEMBOURG SA 7.750 06/01/2021 1,975,000 1,994,750 INTELSAT LUXEMBOURG SA 8.125 06/01/2023 3,025,000 3,123,313 INTER AMERICAN DEVELOPMENT BANK 1.375 07/15/2020 50,000,000 47,120,800 INTER AMERICAN DEVELOPMENT BANK 3.200 08/07/2042 25,000,000 21,382,000 INTER AMERICAN DEVELOPMENT BANK 3.875 09/17/2019 25,000,000 27,525,075 INTER AMERICAN DEVELOPMENT BANK 3.875 02/14/2020 10,000,000 11,106,590 INTER AMERICAN DEVELOPMENT BANK 7.000 06/15/2025 18,000,000 24,200,604 INTERACTIVE DATA CORP 10.250 08/01/2018 625,000 690,625 INTERGEN 7.000 06/30/2023 750,000 731,250 INTERLINE BRANDS INC 10.000 11/15/2018 400,000 430,000 INTERLINE BRANDS INC 7.500 11/15/2018 1,278,000 1,341,900 INTERTAPE POLYMER US INC 8.500 08/01/2014 4,000 3,980 INTL LEASE FINANCE CORP 3.875 04/15/2018 1,000,000 940,000 INTL LEASE FINANCE CORP 4.625 04/15/2021 1,150,000 1,058,000 INTL LEASE FINANCE CORP 5.750 05/15/2016 50,000 51,382 INTL LEASE FINANCE CORP 5.875 04/01/2019 500,000 505,000

New Jersey Division of Pensions and Benefits 163 Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

INTL LEASE FINANCE CORP 6.250% 05/15/2019 $1,000,000 1,027,500 INTL LEASE FINANCE CORP 6.750 09/01/2016 325,000 351,000 INTL LEASE FINANCE CORP 7.125 09/01/2018 2,500,000 2,762,500 INTL LEASE FINANCE CORP 8.250 12/15/2020 1,325,000 1,488,969 INTL LEASE FINANCE CORP 8.625 09/15/2015 2,825,000 3,093,375 INTL LEASE FINANCE CORP 8.625 01/15/2022 225,000 258,750 INTL LEASE FINANCE CORP 8.750 03/15/2017 1,700,000 1,893,375 INTL LEASE FINANCE CORP 8.875 09/01/2017 1,500,000 1,691,250 INTERNATIONAL PAPER CO. 7.950 06/15/2018 20,000,000 24,488,400 INVENTIV HEALTH INC 9.000 01/15/2018 100,000 104,500 INVENTIV HEALTH INC 10.750 08/15/2018 475,000 394,250 INVENTIV HEALTH INC 11.000 08/15/2018 1,000,000 830,000 ION GEOPHYSICAL CORP 8.125 05/15/2018 2,000,000 1,930,000 IOWA STATE SPECIAL OBLIGATION 6.750 06/01/2034 10,000,000 11,430,200 IPAYMENT HOLDINGS INC 15.000 11/15/2018 78,562 53,422 IPAYMENT HOLDINGS INC 10.250 05/15/2018 2,650,000 2,173,000 IRON MOUNTAIN INC 5.750 08/15/2024 675,000 632,813 IRON MOUNTAIN INC 7.750 10/01/2019 3,225,000 3,466,875 IRON MOUNTAIN INC 8.375 08/15/2021 200,000 212,750 ISLE OF CAPRI CASINOS 5.875 03/15/2021 800,000 764,000 ISLE OF CAPRI CASINOS 8.875 06/15/2020 1,250,000 1,306,250 ISRAEL ELEC CORP LTD 5.625 06/21/2018 3,000,000 3,063,750 ISRAEL STATE 2.213 11/01/2014 10,000,000 10,000,000 ISRAEL STATE 3.800 09/01/2013 10,000,000 10,031,910 ISTAR FINANCIAL INC 3.875 07/01/2016 200,000 192,000 J CREW GROUP 8.125 03/01/2019 1,000,000 1,050,000 J.B. POINDEXTER + CO 9.000 04/01/2022 175,000 183,750 JACK COOPER HOLDINGS CORP 9.250 06/01/2020 700,000 700,000 JAGUAR HOLDING CO 9.375 10/15/2017 2,300,000 2,403,500 JAGUAR HOLDING CO 9.500 12/01/2019 1,000,000 1,105,000 JAGUAR LAND ROVER AUTOMOTIVE 5.625 02/01/2023 2,425,000 2,352,250 JAGUAR LAND ROVER AUTOMOTIVE 8.125 05/15/2021 125,000 137,500 JAMES RIVER COAL CO 7.875 04/01/2019 375,000 166,875 JAPAN FIN ORG MUNICIPAL 5.000 05/16/2017 10,000,000 11,370,400 JARDEN CORP 7.500 05/01/2017 1,000,000 1,096,250 JARDEN CORP 7.500 01/15/2020 250,000 267,500 JBS USA FINANCE 7.250 06/01/2021 75,000 75,000 JBS USA FINANCE 8.250 02/01/2020 300,000 314,250 JEFFERIES FINANCE CO. 7.375 04/01/2020 4,000,000 3,880,000 JEFFERIES FINANCE CO. 6.875 06/01/2020 2,855,000 2,769,350 JMC STEEL GROUP 8.250 03/15/2018 1,425,000 1,392,938 JOHNSON + JOHNSON 4.950 05/15/2033 45,000,000 50,508,585 JOHNSON + JOHNSON 6.950 09/01/2029 65,000,000 86,114,470 JPMORGAN CHASE + CO 4.400 07/22/2020 10,000,000 10,457,270 JPMORGAN CHASE + CO 5.150 12/31/2049 525,000 500,063 JAPAN BANK FOR INTL COOP 2.300 03/19/2018 25,000,000 23,277,489 K HOVNANIAN ENTERPRISES 6.250 01/15/2016 125,000 126,875 K HOVNANIAN ENTERPRISES 7.500 05/15/2016 1,474,000 1,525,590 K HOVNANIAN ENTERPRISES 11.875 10/15/2015 675,000 756,000

164 New Jersey Division of Pensions and Benefits Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

KANSAS ST TURNPIKE AUTHORITY 6.740% 09/01/2039 $7,000,000 7,920,500 KB HOME 7.250 06/15/2018 1,000,000 1,060,000 KB HOME 9.100 09/15/2017 275,000 308,000 KELLOGG CO 3.250 05/21/2018 15,000,000 15,709,170 KELLOGG CO 4.000 12/15/2020 30,000,000 31,582,860 KELLOGG CO 7.450 04/01/2031 10,000,000 12,904,730 KEMET CORP 10.500 05/01/2018 425,000 433,500 KENAN ADVANTAGE GROUP 8.375 12/15/2018 1,150,000 1,196,000 KENNEDY WILSON INC 8.750 04/01/2019 225,000 241,875 KENNEDY WILSON INC 8.750 04/01/2019 125,000 134,375 KENTUCKY ST MUNI POWER AGENCY 6.490 09/01/2037 18,000,000 19,121,940 KIMBERLY CLARK CORP 3.625 08/01/2020 10,000,000 10,474,940 KIMBERLY CLARK CORP 7.500 11/01/2018 10,000,000 12,694,940 KINETICS CONCEPT 10.500 11/01/2018 2,250,000 2,418,750 KINETICS CONCEPT 12.500 11/01/2019 2,550,000 2,626,500 KINGDOM OF SWEDEN 1.000 02/27/2018 50,000,000 48,924,125 KNOWLEDGE LEARNING CENTERS 7.750 02/01/2015 500,000 480,000 KODIAK OIL + GAS CORP 8.125 12/01/2019 3,100,000 3,363,500 L BRANDS INC 5.625 02/15/2022 3,497,000 3,549,455 L BRANDS INC 6.625 04/01/2021 350,000 380,188 L BRANDS INC 7.000 05/01/2020 125,000 138,750 L BRANDS INC 8.500 06/15/2019 2,536,000 2,941,760 LADDER CAPITAL FINANCE 7.375 10/01/2017 250,000 255,000 LANDRY'S HOLDINGS 10.250 01/01/2018 500,000 517,500 LANDRY'S HOLDINGS 9.375 05/01/2020 3,925,000 4,140,875 LAREDO PETROLEUM INC 7.375 05/01/2022 500,000 525,000 LAREDO PETROLEUM INC 9.500 02/15/2019 1,400,000 1,540,000 LAS VEGAS NV COPS 7.800 09/01/2039 15,000,000 16,907,550 LBC TANK TERMINAL HOLDINGS 6.875 05/15/2023 200,000 200,500 LBG CAPITAL 7.875 11/01/2020 1,500,000 1,548,000 LBG CAPITAL 8.000 12/31/2049 200,000 202,985 LEAR CORP 4.750 01/15/2023 2,755,000 2,617,250 LEAR CORP 7.875 03/15/2018 800,000 854,000 LEAR CORP 8.125 03/15/2020 44,000 48,180 LEGACY RESERVES/FINANCE 6.625 12/01/2021 2,000,000 1,925,000 LEGG MASON INC 5.500 05/21/2019 1,000,000 1,030,467 LENDER PROCESS SERVICES 5.750 04/15/2023 1,375,000 1,460,938 LENNAR CORP 4.125 12/01/2018 1,000,000 947,500 LENNAR CORP 5.000 11/15/2022 1,000,000 950,000 LENNAR CORP 6.950 06/01/2018 1,300,000 1,404,000 LEVEL 3 COMMUNICATIONS 8.875 06/01/2019 575,000 598,000 LEVEL 3 COMMUNICATIONS 11.875 02/01/2019 1,000,000 1,132,500 LEVEL 3 FINANCING INC 7.000 06/01/2020 800,000 798,000 LEVEL 3 FINANCING INC 8.125 07/01/2019 1,150,000 1,207,500 LEVEL 3 FINANCING INC 8.625 07/15/2020 1,325,000 1,411,125 LEVEL 3 FINANCING INC 10.000 02/01/2018 600,000 646,500 LEXMARK INTL INC 5.125 03/15/2020 2,000,000 2,010,710 LIBBEY GLASS INC 6.875 05/15/2020 562,000 587,993 LIBERTY TIRE RECYCLING 11.000 10/01/2016 2,250,000 2,250,000

New Jersey Division of Pensions and Benefits 165 Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

LIGHTSTREAM RESOURCES 8.625% 02/01/2020 $2,000,000 1,900,000 LIN TELEVISION CORP 6.375 01/15/2021 200,000 202,250 LIN TELEVISION CORP 8.375 04/15/2018 411,000 437,201 LINN ENERGY 6.250 11/01/2019 2,000,000 1,905,000 LINN ENERGY 7.750 02/01/2021 2,500,000 2,506,250 LINN ENERGY 8.625 04/15/2020 1,275,000 1,338,750 LIONS GATE ENTERTAINMENT 10.250 11/01/2016 600,000 642,750 LIVE NATION ENTERTAINMENT 7.000 09/01/2020 1,950,000 2,049,938 LIVE NATION ENTERTAINMENT 8.125 05/15/2018 1,000,000 1,060,000 LKQ CORP 4.750 05/15/2023 2,295,000 2,191,725 LOGAN S ROADHOUSE INC 10.750 10/15/2017 1,000,000 927,500 LORILLARD TOBACCO CO 3.750 05/20/2023 25,000,000 23,067,575 LOUISIANA PACIFIC CORP 7.500 06/01/2020 3,900,000 4,251,000 LUKOIL INTL FINANCE 3.416 04/24/2018 1,000,000 976,250 LYNX I CORP 5.375 04/15/2021 300,000 301,500 LYNX II CORP 6.375 04/15/2023 200,000 201,500 MACOMB MI INTERCEPTOR DRAIN DR 5.375 05/01/2035 5,000,000 5,142,750 MAGNETATION FINANCE CORP. 11.000 05/15/2018 150,000 147,000 MAGNUM HUNTER RESOURCES 9.750 05/15/2020 450,000 456,750 MAGNUM HUNTER RESOURCES 9.750 05/15/2020 400,000 406,000 MANITOBA (PROVINCE OF) 1.750 05/30/2019 10,000,000 9,777,880 MANITOBA (PROVINCE OF) 2.100 09/06/2022 87,000,000 80,831,700 MANITOBA (PROVINCE OF) 8.800 01/15/2020 46,000,000 62,366,800 MANITOBA (PROVINCE OF) 8.875 09/15/2021 37,000,000 52,179,472 MANITOBA (PROVINCE OF) 9.625 12/01/2018 60,000,000 80,811,480 MANITOWOC COMPANY INC 5.875 10/15/2022 3,675,000 3,693,375 MANITOWOC COMPANY INC 8.500 11/01/2020 1,575,000 1,716,750 MARATHON OIL CORP 5.900 03/15/2018 10,000,000 11,492,380 MARFRIG HOLDING EUROPE 9.875 07/24/2017 1,450,000 1,457,250 MARINA DISTRICT FINANCE 9.500 10/15/2015 2,675,000 2,782,000 MARKWEST ENERGY PARTNERS 4.500 07/15/2023 2,095,000 1,916,925 MARKWEST ENERGY PARTNERS 5.500 02/15/2023 1,320,000 1,300,200 MARKWEST ENERGY PARTNERS 6.250 06/15/2022 764,000 786,920 MARKWEST ENERGY PARTNERS 6.750 11/01/2020 250,000 263,750 MARQUETTE TRANSPORTATION CO. 10.875 01/15/2017 225,000 240,750 MARYLAND STATE 4.400 03/01/2023 25,000,000 27,735,750 MASONITE INTERNATIONAL CORP 8.250 04/15/2021 1,425,000 1,535,438 MAXIM CRANE WORKS 12.250 04/15/2015 150,000 157,500 MCCLATCHY CO 9.000 12/15/2022 2,250,000 2,362,500 MCDONALD'S CORP 3.500 07/15/2020 15,000,000 15,687,270 MCDONALD'S CORP 6.300 03/01/2038 20,000,000 25,304,100 MCE FINANCE LTD 5.000 02/15/2021 4,525,000 4,242,188 MCKESSON CORP 1.400 03/15/2018 10,000,000 9,652,090 MCKESSON CORP 2.850 03/15/2023 5,000,000 4,707,555 MCKESSON CORP 7.500 02/15/2019 30,000,000 37,558,620 MCMORAN EXPLORATION CO 11.875 11/15/2014 1,000,000 1,040,010 MDC PARTNERS INC 6.750 04/01/2020 1,250,000 1,246,875 MEDIACOM BROADBAND CORP. 6.375 04/01/2023 300,000 298,500 MEDIACOM CAPITAL CORP. 9.125 08/15/2019 1,575,000 1,693,125

166 New Jersey Division of Pensions and Benefits Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

MEDIMPACT HOLDINGS INC 10.500% 02/01/2018 $1,500,000 1,665,000 MEDTRONIC INC 1.375 04/01/2018 20,000,000 19,443,220 MEDTRONIC INC 2.750 04/01/2023 45,000,000 42,061,005 MEG ENERGY CORP 6.375 01/30/2023 200,000 194,000 MEMORIAL PRODUCTION PARTNERS 7.625 05/01/2021 500,000 492,500 MERCK + CO INC 1.300 05/18/2018 15,000,000 14,546,790 MERCK + CO INC 6.500 12/01/2033 10,000,000 13,005,900 MERCK SHARP + DOHME CORP 6.400 03/01/2028 15,000,000 18,568,875 MERITAGE HOMES CORP 4.500 03/01/2018 125,000 123,750 MERITAGE HOMES CORP 7.000 04/01/2022 525,000 577,500 MERITOR INC 6.750 06/15/2021 500,000 477,500 MET GOVT NASHVILLE & DAVIDSON 6.568 07/01/2037 11,000,000 13,678,610 MET GOVT NASHVILLE & DAVIDSON 6.731 07/01/2043 28,000,000 32,521,440 MET GOVT NASHVILLE & DAVIDSON 7.431 07/01/2043 5,000,000 5,996,700 MET TRANSPORTATION AUTHORITY 6.687 11/15/2040 20,000,000 24,100,000 METHANEX CORP 3.250 12/15/2019 1,000,000 968,081 METHANEX CORP 5.250 03/01/2022 100,000 104,825 METLIFE INC 10.750 08/01/2069 1,550,000 2,394,750 METROPCS WIRELESS INC 6.250 04/01/2021 2,325,000 2,365,688 METROPCS WIRELESS INC 6.625 11/15/2020 1,640,000 1,701,500 METROPCS WIRELESS INC 6.625 04/01/2023 3,425,000 3,467,813 METROPCS WIRELESS INC 7.875 09/01/2018 1,250,000 1,331,250 MGM RESORTS INTL 6.625 07/15/2015 850,000 906,313 MGM RESORTS INTL 6.625 12/15/2021 2,725,000 2,810,156 MGM RESORTS INTL 6.750 10/01/2020 275,000 284,625 MGM RESORTS INTL 6.875 04/01/2016 150,000 160,500 MGM RESORTS INTL 7.500 06/01/2016 1,500,000 1,635,000 MGM RESORTS INTL 7.625 01/15/2017 1,500,000 1,638,750 MGM RESORTS INTL 7.750 03/15/2022 500,000 543,125 MGM RESORTS INTL 8.625 02/01/2019 1,175,000 1,327,750 MGM RESORTS INTL 10.000 11/01/2016 1,375,000 1,612,188 MGM RESORTS INTL 11.375 03/01/2018 2,150,000 2,687,500 MICHAEL FOODS GROUP INC 9.750 07/15/2018 1,500,000 1,642,500 MICHAEL FOODS HOLDING 8.500 07/15/2018 3,000,000 3,090,000 MICHAELS STORES INC 7.750 11/01/2018 1,500,000 1,605,000 MICHIGAN ST UNIVERSITY REVENUES 7.625 09/15/2027 5,000,000 6,151,900 MICHIGAN ST UNIVERSITY REVENUES 6.173 02/15/2050 20,000,000 22,720,000 MIDSTATES PETRO INC/LLC 9.250 06/01/2021 3,000,000 2,820,000 MIDSTATES PETRO INC/LLC 10.750 10/01/2020 3,025,000 3,040,125 MIDWEST VANADIUM PTY LTD 11.500 02/15/2018 50,000 36,500 MILACRON LLC/MCRON FINANCE 7.750 02/15/2021 1,275,000 1,271,813 MILLAR WESTERN FOREST 8.500 04/01/2021 225,000 222,188 MIRABELA NICKEL LTD 8.750 04/15/2018 125,000 98,750 MISSISSIPPI STATE 5.245 11/01/2034 20,000,000 21,270,200 MOBIL CORP 8.625 08/15/2021 20,000,000 28,088,520 MOHEGAN TRIBAL GAMING 6.875 02/15/2015 575,000 560,625 MOHEGAN TRIBAL GAMING 10.500 12/15/2016 550,000 537,625 MOLYCORP INC 10.000 06/01/2020 500,000 485,000 MOMENTIVE PERFORMANCE 8.875 10/15/2020 1,450,000 1,515,250

New Jersey Division of Pensions and Benefits 167 Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

MOMENTIVE PERFORMANCE 9.000% 01/15/2021 $275,000 235,813 MONITRONICS INTERNATIONAL 9.125 04/01/2020 850,000 879,750 MOOD MEDIA CORP 9.250 10/15/2020 2,425,000 2,218,875 MPT OPERATING PARTNERSHIP 6.875 05/01/2021 175,000 185,500 MARTIN MIDSTREAM PARTNERS 7.250 02/15/2021 3,045,000 3,060,225 MARTIN MIDSTREAM PARTNERS 8.875 04/01/2018 1,352,000 1,422,980 MTR GAMING GROUP INC 11.500 08/01/2019 575,000 600,875 MUELLER WATER PRODUCTS 7.375 06/01/2017 1,000,000 1,025,000 MUELLER WATER PRODUCTS 8.750 09/01/2020 1,140,000 1,242,600 MULTIPLAN INC 9.875 09/01/2018 2,850,000 3,099,375 MURRAY ENERGY CORP 8.625 06/15/2021 225,000 225,000 MYLAN INC 7.875 07/15/2020 1,000,000 1,153,948 N E OHIO REGULATORY SEWER DIST 6.038 11/15/2040 25,000,000 27,198,250 N TEXAS STATE MUNICIPAL WATER 6.010 09/01/2040 7,000,000 7,801,220 N TEXAS TOLLWAY AUTH REVENUE 6.718 01/01/2049 5,000,000 5,891,200 NABORS INDUSTRIES INC 9.250 01/15/2019 80,000,000 99,258,160 NAI ENTERTAINMENT HOLDINGS 8.250 12/15/2017 112,000 119,840 NANA DEVELOPMENT CORP 9.500 03/15/2019 625,000 625,000 NARA CABLE FUNDING 8.875 12/01/2018 4,375,000 4,550,000 NARA CABLE FUNDING 8.875 12/01/2018 300,000 307,500 NATIONAL CINEMEDIA LLC 6.000 04/15/2022 325,000 333,531 NATIONAL MONEY MART CO 10.375 12/15/2016 700,000 742,000 NATIONSTAR MORTGAGE CORP. 6.500 06/01/2022 1,475,000 1,438,125 NATIONSTAR MORTGAGE CORP. 7.875 10/01/2020 2,000,000 2,120,000 NATIONSTAR MORTGAGE CORP. 9.625 05/01/2019 450,000 504,000 NATIONSTAR MORTGAGE CORP. 10.875 04/01/2015 350,000 366,625 NATIONWIDE MUTUAL INSURANCE 9.375 08/15/2039 2,300,000 3,112,098 NAVIOS SOUTH AMERICA LOGISTICS 9.250 04/15/2019 100,000 107,250 NAVISTAR INTL CORP 8.250 11/01/2021 325,000 319,313 NBCUNIVERSAL ENTERPRISE 1.974 04/15/2019 10,000,000 9,732,570 NBTY INC 9.000 10/01/2018 1,865,000 2,028,188 NCL CORP LTD 5.000 02/15/2018 150,000 147,000 NEENAH PAPER INC 5.250 05/15/2021 250,000 243,750 NEFF RENTAL/NEFF FINANCE CORP 9.625 05/15/2016 1,500,000 1,575,000 NEOVIA LOGISTICS INTL. HOLDINGS 10.000 02/15/2018 775,000 767,250 NES RENTALS HOLDINGS 7.875 05/01/2018 1,525,000 1,505,938 NETAPP INC 3.250 12/15/2022 10,000,000 9,207,450 NETFLIX INC 5.375 02/01/2021 3,000,000 2,985,000 NEUSTAR INC 4.500 01/15/2023 1,900,000 1,795,500 NEW ACADEMY FINANCIAL CO. 8.000 06/15/2018 1,800,000 1,845,000 NEW ENTERPRISE STONE + LIME CO. 11.000 09/01/2018 300,000 214,500 NEW ENTERPRISE STONE + LIME CO. 13.000 03/15/2018 327,607 358,730 NEW GOLD INC 6.250 11/15/2022 900,000 861,750 NEW GOLD INC 7.000 04/15/2020 1,500,000 1,515,000 NJ ST TRANSPORTATION TRUST FUND 6.875 12/15/2039 4,000,000 4,442,880 NJ ST TURNPIKE AUTHORITY 7.414 01/01/2040 10,000,000 13,313,100 NEW LOOK BONDCO I PLC 8.375 05/14/2018 975,000 945,750 NEW YORK CITY NY MUNICIPAL WATER 6.011 06/15/2042 33,000,000 38,335,110 NEW YORK CITY NY MUNICIPAL WATER 6.124 06/15/2042 20,000,000 22,457,400

168 New Jersey Division of Pensions and Benefits Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

NEW YORK CITY NY TRANSITIONAL 6.267% 08/01/2039 $20,000,000 21,940,400 NEW YORK NY 6.246 06/01/2035 20,000,000 22,889,000 NEW YORK ST DORM AUTHORITY 5.389 03/15/2040 30,000,000 32,149,500 NEWFIELD EXPLORATION CO 6.875 02/01/2020 375,000 386,250 NEWFIELD EXPLORATION CO 7.125 05/15/2018 870,000 902,625 NEWMARKET CORP 4.100 12/15/2022 1,000,000 968,847 NEWPAGE CORP 10.000 05/01/2049 800,000 5,000 NEWS AMERICA INC 7.700 10/30/2025 10,000,000 12,203,480 NEWS AMERICA INC 8.450 08/01/2034 12,000,000 15,933,264 NEWS AMERICA INC 9.500 07/15/2024 10,000,000 13,366,380 NGPL PIPECO LLC 9.625 06/01/2019 750,000 776,250 NIELSEN FINANCE 4.500 10/01/2020 1,000,000 960,000 NIELSEN FINANCE 7.750 10/15/2018 300,000 322,500 NII CAPITAL CORP 7.625 04/01/2021 1,190,000 925,225 NII CAPITAL CORP 8.875 12/15/2019 900,000 760,500 NII CAPITAL CORP 10.000 08/15/2016 250,000 242,500 NII INTERNATIONAL TELECOM 7.875 08/15/2019 2,195,000 2,079,763 NIKE INC 2.250 05/01/2023 20,000,000 18,411,000 NIKE INC 3.625 05/01/2043 10,000,000 8,844,860 NOBLE ENERGY INC 8.250 03/01/2019 64,000,000 80,599,616 NOBLE HOLDING INTL LTD 4.625 03/01/2021 26,000,000 27,030,172 NOKIA CORP 5.375 05/15/2019 1,500,000 1,458,750 NOKIA CORP 6.625 05/15/2039 3,850,000 3,474,625 NORANDA ALUMINUM ACQUISITION 11.000 06/01/2019 300,000 285,000 NORBORD INC 6.250 06/15/2015 1,000,000 1,065,000 NORFOLK SOUTHERN RAILWAY 9.750 06/15/2020 21,000,000 29,100,078 NORSKE SKOGINDUSTRIER 6.125 10/15/2015 1,700,000 1,173,000 NORTEK INC 8.500 04/15/2021 225,000 240,750 NORTEK INC 8.500 04/15/2021 400,000 424,000 NORTH ATLANTIC TRADING 11.500 07/15/2016 175,000 182,000 NORTH ATLANTIC TRADING 19.000 01/15/2017 108,160 115,731 NC ST MUNICIPAL POWER AGENCY 6.184 01/01/2032 20,000,000 22,121,400 NC ST TURNPIKE AUTHORITY 5.418 01/01/2041 22,000,000 23,967,680 NC ST TURNPIKE AUTHORITY 6.700 01/01/2039 20,000,000 22,620,000 NORTHERN OIL AND GAS INC 8.000 06/01/2020 1,250,000 1,262,500 NORTHERN STATES PWR MINN 2.600 05/15/2023 30,000,000 28,247,520 NORTHROP GRUMMAN CORP 3.500 03/15/2021 40,000,000 40,353,480 NOVA CHEMICALS CORP 8.375 11/01/2016 1,000,000 1,057,500 NOVA SCOTIA PROVINCE 8.250 11/15/2019 42,436,000 55,040,341 NOVA SCOTIA PROVINCE 8.250 07/30/2022 5,000,000 6,796,255 NOVA SCOTIA PROVINCE 9.125 05/01/2021 36,000,000 50,243,760 NOVA SCOTIA PROVINCE 9.250 03/01/2020 46,000,000 63,144,108 NOVARTIS CAPITAL CORP 2.400 09/21/2022 10,000,000 9,397,540 NOVASEP HOLDING 8.000 12/15/2016 155,000 138,741 NOVELIS INC 8.375 12/15/2017 1,200,000 1,272,000 NOVELIS INC 8.750 12/15/2020 1,675,000 1,796,438 NPC INTL. INC. 10.500 01/15/2020 675,000 773,719 NRG ENERGY INC 6.625 03/15/2023 450,000 450,000 NRG ENERGY INC 7.625 01/15/2018 2,000,000 2,140,000

New Jersey Division of Pensions and Benefits 169 Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

NRG ENERGY INC 7.625% 05/15/2019 $500,000 522,500 NRG ENERGY INC 7.875 05/15/2021 3,550,000 3,789,625 NRG ENERGY INC 8.250 09/01/2020 1,000,000 1,077,500 NSG HOLDINGS 7.750 12/15/2025 792,000 819,720 NORTHERN ARIZONIA UNIVERSITY 6.687 06/01/2039 10,000,000 10,783,300 NUANCE COMMUNICATIONS 5.375 08/15/2020 3,350,000 3,274,625 NUFARM AUSTRALIA LIMITED 6.375 10/15/2019 1,850,000 1,845,375 NUVEEN INVESTMENTS INC 9.125 10/15/2017 625,000 626,563 NXP BV/NXP FUNDING LLC 5.750 03/15/2023 200,000 201,500 OASIS PETROLEUM INC 6.500 11/01/2021 1,575,000 1,614,375 OASIS PETROLEUM INC 6.875 01/15/2023 300,000 309,000 OEKB OEST. KONTROLLBANK 1.125 05/29/2018 65,000,000 63,090,040 OFFSHORE GROUP INVESTMENTS 7.125 04/01/2023 325,000 319,313 OGX AUSTRIA 8.500 06/01/2018 500,000 157,500 OHIO EDISON 6.875 07/15/2036 30,000,000 36,392,340 OK ST MUNICIPAL POWER AUTHORITY 6.440 01/01/2045 6,000,000 6,680,460 OMNICARE INC 7.750 06/01/2020 1,000,000 1,095,000 ONEX USI ACQUISITION CORP 7.750 01/15/2021 3,200,000 3,152,000 ONO FINANCE 10.875 07/15/2019 2,675,000 2,782,000 ONTARIO (PROVINCE OF) 1.650 09/27/2019 75,000,000 71,647,500 ONTARIO (PROVINCE OF) 2.450 06/29/2022 50,000,000 47,097,200 ONTARIO (PROVINCE OF) 3.000 07/16/2018 40,000,000 41,988,000 ONTARIO (PROVINCE OF) 4.000 10/07/2019 20,000,000 21,757,000 ONTARIO (PROVINCE OF) 4.400 04/14/2020 75,000,000 83,160,300 OPPENHEIMER HOLDINGS INC 8.750 04/15/2018 3,200,000 3,368,000 ORACLE CORP 2.500 10/15/2022 75,000,000 69,163,350 OC CA LOCAL TRANSPORTATION 6.908 02/15/2041 25,000,000 31,833,500 ORION ENGINEERED CARBONS 9.250 08/01/2019 3,525,000 3,525,000 ORION ENGINEERED CARBONS 9.625 06/15/2018 898,000 972,085 ORLANDO FL COMM REDEVELOP TAX 7.500 09/01/2029 7,000,000 7,831,810 ORLANDO FL COMM REDEVELOP TAX 7.784 09/01/2040 2,000,000 2,185,960 OSHKOSH CORP 8.250 03/01/2017 200,000 213,000 OSHKOSH CORP 8.500 03/01/2020 75,000 81,094 OUTERWALL INC 6.000 03/15/2019 2,000,000 1,997,500 OWENS BROCKWAY 7.375 05/15/2016 875,000 975,625 OWENS ILLINOIS INC 7.800 05/15/2018 225,000 257,625 OXEA FINANCE 9.500 07/15/2017 2,084,000 2,235,924 OXFORD FINANCE 7.250 01/15/2018 900,000 936,000 PACIFIC BELL TELEPHONE 7.125 03/15/2026 10,580,000 12,945,297 PACIFIC DRILLING 5.375 06/01/2020 525,000 490,875 PACIFIC GAS + ELECTRIC 6.050 03/01/2034 10,000,000 11,659,250 PACIFIC RUBIALES ENERGY 5.125 03/28/2023 1,000,000 945,000 PAETEC HOLDING CORP 9.875 12/01/2018 1,975,000 2,182,375 PALACE ENTERTAINMENT HOLDINGS 8.875 04/15/2017 215,000 221,450 PANTRY INC 8.375 08/01/2020 875,000 939,531 PARTY CITY HOLDINGS INC 8.875 08/01/2020 2,225,000 2,386,313 PASCO COUNTY FL WATER & SEWER 6.760 10/01/2039 14,000,000 15,175,160 PATRIOT MERGER CORP 9.000 07/15/2021 3,625,000 3,543,438 PEABODY ENERGY CORP 6.000 11/15/2018 500,000 501,250

170 New Jersey Division of Pensions and Benefits Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

PEABODY ENERGY CORP 6.250% 11/15/2021 $775,000 747,875 PENINSULA GAMING LLC 8.375 02/15/2018 1,175,000 1,222,000 PENN NATIONAL GAMING INC 8.750 08/15/2019 455,000 498,225 PENN VIRGINIA CORP 8.500 05/01/2020 500,000 485,000 PENN VIRGINIA RESOURCE 6.500 05/15/2021 1,325,000 1,275,313 PENN VIRGINIA RESOURCE 8.250 04/15/2018 225,000 234,563 PA ST ECONOMIC DEVELOPMENT 6.532 06/15/2039 15,000,000 17,350,500 PA ST HIGHER EDUCATION 6.291 04/01/2040 7,000,000 7,790,930 PENSKE AUTO GROUP INC 5.750 10/01/2022 350,000 357,000 PEPCO HOLDINGS INC 7.450 08/15/2032 16,400,000 20,181,036 PEPSICO INC 0.700 02/26/2016 30,000,000 29,769,840 PEPSICO INC 3.000 08/25/2021 5,000,000 4,918,720 PERRIGO COMPANY 2.950 05/15/2023 10,000,000 9,244,730 PERRY ELLIS INTL INC 7.875 04/01/2019 175,000 184,188 PERSTORP HOLDING 8.750 05/15/2017 1,750,000 1,750,000 PERSTORP HOLDING 11.000 08/15/2017 1,750,000 1,732,500 PETCO ANIMAL SUPPLIES INC 9.250 12/01/2018 1,750,000 1,885,625 PETCO ANIMAL SUPPLIES INC 8.500 10/15/2017 2,000,000 2,040,000 PETROLEUM GEO SERVICES 7.375 12/15/2018 1,100,000 1,196,250 PETROLOGISTICS LP/FIN 6.250 04/01/2020 3,900,000 3,822,000 PHARMACIA CORP 6.600 12/01/2028 50,000,000 62,805,300 PHH CORP 9.250 03/01/2016 100,000 111,250 PHIBRO ANIMAL HEALTH CORP 9.250 07/01/2018 1,125,000 1,209,375 PHYSIO CONTROL INTERNATIONAL 9.875 01/15/2019 1,150,000 1,265,000 PHYSIOTHERAPY ASSOCIATES 11.875 05/01/2019 175,000 96,250 PILGRIM'S PRIDE CORP 7.875 12/15/2018 1,250,000 1,331,250 PINNACLE ENTERTAINMENT 7.750 04/01/2022 150,000 156,750 PINNACLE ENTERTAINMENT 8.625 08/01/2017 400,000 417,000 PINNACLE ENTERTAINMENT 8.750 05/15/2020 2,100,000 2,252,250 PINNACLE FOODS FINANCE 4.875 05/01/2021 375,000 358,125 PITTSBURGH GLASS WORKS 8.500 04/15/2016 500,000 495,000 PLAINS EXPLORE + PRODUCTION CO. 6.125 06/15/2019 500,000 530,162 PLAINS EXPLORE + PRODUCTION CO. 6.500 11/15/2020 1,000,000 1,060,205 PLAINS EXPLORE + PRODUCTION CO. 6.625 05/01/2021 1,690,000 1,789,132 PLAINS EXPLORE + PRODUCTION CO. 6.750 02/01/2022 3,150,000 3,338,294 PLAINS EXPLORE + PRODUCTION CO. 6.875 02/15/2023 1,200,000 1,283,882 PLAINS EXPLORE + PRODUCTION CO. 7.625 04/01/2020 575,000 635,514 PLAINS EXPLORE + PRODUCTION CO. 8.625 10/15/2019 550,000 605,303 PLY GEM INDUSTRIES 8.250 02/15/2018 1,250,000 1,331,250 PLY GEM INDUSTRIES 9.375 04/15/2017 1,077,000 1,138,928 POLICE & FIREMAN MORTGAGE PROGRAM Various Various 843,788,176 835,483,242 POLYMER GROUP INC 7.750 02/01/2019 500,000 520,000 POLYONE CORP 5.250 03/15/2023 475,000 467,875 POLYONE CORP 7.375 09/15/2020 1,175,000 1,269,000 POLYPORE INTERNATIONAL 7.500 11/15/2017 500,000 521,250 PORT IMPERIAL FERRY CORP 7.460 04/30/2049 1,177,843 1,177,843 POST HOLDINGS INC 7.375 02/15/2022 600,000 642,000 PPL ENERGY SUPPLY LLC 5.700 10/15/2035 15,000,000 16,112,160 PPL ENERGY SUPPLY LLC 6.000 12/15/2036 55,200,000 56,339,162

New Jersey Division of Pensions and Benefits 171 Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

PPL ENERGY SUPPLY LLC 6.200% 05/15/2016 $40,000,000 44,485,920 PPL ENERGY SUPPLY LLC 6.500 05/01/2018 50,000,000 57,923,600 PQ CORP 8.750 05/01/2018 2,250,000 2,306,250 PRESTIGE BRANDS INC 8.125 02/01/2020 3,715,000 4,058,638 PRESTIGE BRANDS INC 8.250 04/01/2018 3,055,000 3,253,575 PRINCETON OH CITY SCHOOL DISTRICT 6.390 12/01/2047 13,000,000 13,562,120 PRIVATE EXPORT FUNDING 1.450 08/15/2019 20,000,000 19,087,640 PRIVATE EXPORT FUNDING 2.050 11/15/2022 35,000,000 32,412,380 PRIVATE EXPORT FUNDING 2.450 07/15/2024 10,000,000 9,295,260 PROCTER + GAMBLE CO/THE 5.500 02/01/2034 25,000,000 28,893,025 PROGRESS ENERGY INC 7.050 03/15/2019 25,000,000 30,292,375 PROGRESS ENERGY INC 7.750 03/01/2031 56,235,000 72,767,865 PROQUEST NOTES COMPANY 9.000 10/15/2018 625,000 625,000 PROSPECT CAPITAL CORP 5.875 03/15/2023 5,000,000 4,743,355 PROSPECT MEDICAL HOLDING 8.375 05/01/2019 2,000,000 2,090,000 PROV OF NEW BRUNSWICK 2.750 06/15/2018 63,000,000 65,519,370 PROV OF NEW BRUNSWICK 8.750 05/01/2022 43,000,000 59,782,126 PROVIDENT FUNDING 6.750 06/15/2021 3,425,000 3,416,438 PROVINCE OF NEWFOUNDLAND 7.320 10/13/2023 12,000,000 15,651,048 PROVINCE OF NEWFOUNDLAND 9.000 10/15/2021 32,000,000 44,535,008 PROVINCE OF QUEBEC 2.625 02/13/2023 25,000,000 23,785,575 PROVINCE OF QUEBEC 7.125 02/09/2024 15,000,000 19,503,735 PROVINCE OF QUEBEC 7.500 07/15/2023 22,000,000 29,262,200 PROVINCE OF QUEBEC 7.500 09/15/2029 99,000,000 135,990,855 PROVINCE OF SASKATCHEWAN 8.500 07/15/2022 45,000,000 62,685,765 PROVINCE OF SASKATCHEWAN 9.125 02/15/2021 19,000,000 26,355,109 PROVINCE OF SASKATCHEWAN 9.375 12/15/2020 30,000,000 41,881,440 PRUDENTIAL FINANCIAL INC 5.875 09/15/2042 1,000,000 1,002,500 PUBLIC SERVICE ELECTRIC AND GAS 2.375 05/15/2023 55,000,000 50,927,910 PUBLIC SERVICE OKLAHOMA 5.150 12/01/2019 12,000,000 13,596,984 PUGET ENERGY INC 5.625 07/15/2022 100,000 106,020 PUGET ENERGY INC 6.000 09/01/2021 275,000 295,543 PUGET ENERGY INC 6.500 12/15/2020 2,000,000 2,240,010 PVH CORP 4.500 12/15/2022 5,690,000 5,462,400 PVH CORP 7.375 05/15/2020 275,000 298,375 QR ENERGY 9.250 08/01/2020 900,000 924,750 QUEBECOR MEDIA 7.750 03/15/2016 570,000 579,263 QUEBECOR MEDIA 5.750 01/15/2023 125,000 121,875 QUICKSILVER RESOURCES INC 9.125 08/15/2019 325,000 276,250 QVC INC 4.375 03/15/2023 1,265,000 1,179,955 QVC INC 5.125 07/02/2022 50,000 50,527 QVC INC 7.375 10/15/2020 75,000 81,813 QVC INC 7.500 10/01/2019 2,522,000 2,741,946 RADIATION THERAPY SERVICE 8.875 01/15/2017 50,000 47,000 RADIATION THERAPY SERVICE 9.875 04/15/2017 1,000,000 610,000 RADIO SYSTEMS CORP 8.375 11/01/2019 225,000 239,625 RADIOSHACK CORP 6.750 05/15/2019 450,000 324,000 RAIN CII CARBON LLC/CII 8.000 12/01/2018 1,450,000 1,486,250 RAIN CII CARBON LLC/CII 8.250 01/15/2021 1,200,000 1,200,000

172 New Jersey Division of Pensions and Benefits Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

RANGE RESOURCES CORP 5.000% 08/15/2022 $1,000,000 977,500 RANGE RESOURCES CORP 5.000 03/15/2023 3,625,000 3,543,438 RANGE RESOURCES CORP 6.750 08/01/2020 500,000 536,250 RANGE RESOURCES CORP 8.000 05/15/2019 450,000 479,250 RAYTHEON COMPANY 3.125 10/15/2020 20,000,000 20,125,080 RAYTHEON COMPANY 4.400 02/15/2020 10,000,000 10,879,180 RBS GLOBAL + REXNORD CORP 8.500 05/01/2018 4,250,000 4,515,625 RED OAK POWER LLC 8.540 11/30/2019 83,180 87,339 REGAL CINEMAS CORP 8.625 07/15/2019 800,000 854,000 REGAL ENTERTAINMENT GROUP 5.750 02/01/2025 75,000 71,250 REGAL ENTERTAINMENT GROUP 5.750 06/15/2023 250,000 241,875 REGAL ENTERTAINMENT GROUP 9.125 08/15/2018 493,000 542,300 REGENCY ENERGY PARTNERS 5.500 04/15/2023 1,690,000 1,664,650 REGENCY ENERGY PARTNERS 6.500 07/15/2021 1,375,000 1,436,875 REGENCY ENERGY PARTNERS 6.875 12/01/2018 100,000 105,250 REGIONS FINANCIAL CORP 7.375 12/10/2037 1,000,000 1,120,000 REGIONAL TRANSPORTATION DISTRICT 7.672 06/01/2040 30,000,000 35,169,000 RELIANCE INTERMEDIATE 9.500 12/15/2019 4,240,000 4,579,200 RENT A CENTER INC 4.750 05/01/2021 1,275,000 1,208,063 RENT A CENTER INC 6.625 11/15/2020 1,745,000 1,827,888 RENTECH NITROGEN PARTNERS 6.500 04/15/2021 3,550,000 3,514,500 RES CARE INC 10.750 01/15/2019 1,975,000 2,212,000 RESOLUTE ENERGY CORP 8.500 05/01/2020 3,295,000 3,352,663 RESOLUTE FOREST PRODUCTS 5.875 05/15/2023 1,125,000 1,004,063 RESOLUTION FUNDING 8.625 01/15/2021 5,000,000 7,079,310 REVLON CONSUMER PRODUCTS 5.750 02/15/2021 2,225,000 2,169,375 REX ENERGY CORP 8.875 12/01/2020 1,500,000 1,545,000 REXEL SA 5.250 06/15/2020 500,000 498,750 REXEL SA 6.125 12/15/2019 175,000 178,500 REYNOLDS GROUP 5.750 10/15/2020 2,050,000 2,065,375 REYNOLDS GROUP 6.875 02/15/2021 350,000 367,500 REYNOLDS GROUP 7.125 04/15/2019 1,250,000 1,320,313 REYNOLDS GROUP 7.875 08/15/2019 2,100,000 2,289,000 REYNOLDS GROUP 8.250 02/15/2021 3,050,000 3,019,500 REYNOLDS GROUP 8.500 05/15/2018 1,000,000 1,030,000 REYNOLDS GROUP 9.000 04/15/2019 2,050,000 2,116,625 REYNOLDS GROUP 9.875 08/15/2019 1,850,000 1,979,500 RFCSP STRIP PRINCIPAL 0.000 10/15/2019 100,000,000 87,760,900 RFCSP STRIP PRINCIPAL 0.000 07/15/2020 75,000,000 64,086,450 RHP HOTEL PROPERTIES 5.000 04/15/2021 1,200,000 1,164,000 RITE AID CORP 6.750 06/15/2021 100,000 98,250 RITE AID CORP 6.875 12/15/2028 1,000,000 910,000 RIVERS PITTSBURGH 9.500 06/15/2019 693,000 748,440 ROC FINANCE 12.125 09/01/2018 3,275,000 3,725,313 ROCKIES EXPRESS PIPELINE 6.000 01/15/2019 75,000 67,125 ROCKWOOD SPECIALTIES GROUP 4.625 10/15/2020 3,255,000 3,271,275 ROHM + HAAS COMPANY 6.000 09/15/2017 15,000,000 17,104,215 ROHM + HAAS COMPANY 7.850 07/15/2029 67,690,000 88,110,652 ROOFING SUPPLY 10.000 06/01/2020 1,500,000 1,623,750

New Jersey Division of Pensions and Benefits 173 Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

ROSETTA RESOURCES INC 9.500% 04/15/2018 $3,590,000 3,877,200 ROYAL BANK OF SCOTLAND GROUP 6.100 06/10/2023 4,000,000 3,794,852 ROYAL BANK OF SCOTLAND GROUP 6.990 12/31/2049 825,000 771,375 ROYAL BANK OF SCOTLAND GROUP 7.640 12/31/2049 100,000 89,500 RPM INTERNATIONAL INC 3.450 11/15/2022 15,000,000 13,993,830 RR DONNELLEY + SONS CO 7.875 03/15/2021 225,000 229,500 RR DONNELLEY + SONS CO 8.250 03/15/2019 25,000 26,250 RSI HOME PRODUCTS INC 6.875 03/01/2018 2,075,000 2,121,688 RURAL METRO CORP 10.125 07/15/2019 1,050,000 892,500 RUTGERS NJ STATE UNIVERSITY 3.928 05/01/2028 10,000,000 9,587,900 RYERSON INC 9.000 10/15/2017 500,000 507,500 RYLAND GROUP 5.375 10/01/2022 125,000 120,625 RYLAND GROUP 6.625 05/01/2020 250,000 262,500 SABINE OIL + GAS 9.750 02/15/2017 1,750,000 1,785,000 SABINE PASS LIQUEFACTION 5.625 02/01/2021 3,985,000 3,865,450 SABINE PASS LIQUEFACTION 5.625 04/15/2023 1,325,000 1,252,125 SABINE PASS LIQUEFACTION 6.500 11/01/2020 3,270,000 3,302,700 SABINE PASS LIQUEFACTION 7.500 11/30/2016 1,135,000 1,221,544 SABINE PASS LIQUEFACTION 7.500 11/30/2016 75,000 76,969 SABLE INTL FINANCE LTD 8.750 02/01/2020 200,000 220,000 SABRA HEALTH 8.125 11/01/2018 81,000 86,873 SABRE INC 8.500 05/15/2019 1,175,000 1,251,375 SAFWAY GROUP HOLDING 7.000 05/15/2018 1,100,000 1,078,000 SALLY HOLDINGS 5.750 06/01/2022 2,330,000 2,364,950 SALLY HOLDINGS 6.875 11/15/2019 895,000 959,888 SAMSON INVESTMENT COMPANY 10.000 02/15/2020 4,765,000 5,021,119 SAN ANTONIO TX INDEP SCHOOL 4.006 08/15/2028 5,000,000 5,073,200 SANCHEZ ENERGY CORP 7.750 06/15/2021 1,950,000 1,901,250 SANDRIDGE ENERGY INC 7.500 03/15/2021 1,775,000 1,695,125 SANDRIDGE ENERGY INC 7.500 02/15/2023 1,500,000 1,425,000 SANDRIDGE ENERGY INC 8.125 10/15/2022 1,620,000 1,603,800 SANDRIDGE ENERGY INC 8.750 01/15/2020 200,000 204,000 SANOFI 1.250 04/10/2018 10,000,0009,685,870 SAPPI PAPIER HOLDING 6.625 04/15/2021 200,000 194,000 SBA COMMUNICATIONS CORP 5.625 10/01/2019 1,325,000 1,311,750 SBA TELECOMMUNICATIONS 5.750 07/15/2020 200,000 200,500 SCANA CORPORATION 4.125 02/01/2022 8,000,000 7,873,040 SCHAEFFLER FINANCE 4.750 05/15/2021 3,945,000 3,747,750 SCHAEFFLER FINANCE 7.750 02/15/2017 1,650,000 1,823,250 SCHAEFFLER FINANCE 8.500 02/15/2019 1,850,000 2,062,750 SCIENTIFIC GAMES CORP 8.125 09/15/2018 300,000 321,000 SCOTTS MIRACLE GROWTH CO. 7.250 01/15/2018 250,000 262,500 SEAGATE HDD CAYMAN 4.750 06/01/2023 5,000,000 4,662,500 SEAGATE HDD CAYMAN 6.875 05/01/2020 650,000 689,000 SEAGATE HDD CAYMAN 7.750 12/15/2018 1,500,000 1,631,250 SEALED AIR CORP 5.250 04/01/2023 2,225,000 2,163,813 SEALED AIR CORP 6.500 12/01/2020 500,000 527,500 SEALED AIR CORP 8.125 09/15/2019 675,000 752,625 SEALED AIR CORP 8.375 09/15/2021 1,875,000 2,118,750

174 New Jersey Division of Pensions and Benefits Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

SEITEL INC 9.500% 04/15/2019 $1,500,000 1,503,750 SELECT MEDICAL CORP 6.375 06/01/2021 2,500,000 2,375,000 SEMINOLE HARD ROCK ENTERTAINMENT 5.875 05/15/2021 325,000 315,250 SEQUA CORP 7.000 12/15/2017 1,000,000 990,000 SERTA SIMMONS HOLDINGS 8.125 10/01/2020 3,275,000 3,332,313 SERVICE CORP INTL 4.500 11/15/2020 175,000 168,000 SERVICE CORP INTL 5.375 01/15/2022 1,350,000 1,346,625 SERVICE CORP INTL 7.000 06/15/2017 200,000 220,500 SERVICE CORP INTL 7.000 05/15/2019 125,000 132,188 SERVICE CORP INTL 7.500 04/01/2027 2,525,000 2,758,563 SERVICE CORP INTL 8.000 11/15/2021 425,000 486,625 SERVICEMASTER COMPANY 7.000 08/15/2020 3,750,000 3,557,813 SERVICEMASTER COMPANY 8.000 02/15/2020 1,575,000 1,571,063 SESI LLC 6.375 05/01/2019 200,000 206,500 SESI LLC 7.125 12/15/2021 225,000 243,000 SEVEN GENERATIONS ENERGY 8.250 05/15/2020 1,500,000 1,492,500 SHALE HOLDINGS 8.750 11/15/2019 1,100,000 1,122,000 SHEA HOMES 8.625 05/15/2019 150,000 160,125 SHEARERS FOODS 9.000 11/01/2019 2,250,000 2,379,375 SHELF DRILL HOLDINGS 8.625 11/01/2018 1,025,000 1,066,000 SHERIDAN GROUP INC/THE 12.500 04/15/2014 121,578 120,362 SIDEWINDER DRILLING INC 9.750 11/15/2019 1,225,000 1,240,313 SILVER II BORROWERS 7.750 12/15/2020 2,875,000 2,889,375 SIMMONS FOODS INC 10.500 11/01/2017 2,000,000 2,105,000 SINCLAIR TELEVISION GROUP 5.375 04/01/2021 1,850,000 1,776,000 SINCLAIR TELEVISION GROUP 9.250 11/01/2017 375,000 397,500 SIRIUS XM RADIO INC 4.250 05/15/2020 275,000 258,500 SIRIUS XM RADIO INC 4.625 05/15/2023 350,000 323,750 SIRIUS XM RADIO INC 5.250 08/15/2022 375,000 363,750 SIWF MERGER 6.250 06/01/2021 1,240,000 1,215,200 SIX FLAGS ENTERTAINMENT 5.250 01/15/2021 500,000 482,500 SKY GROWTH ACQUISITION 7.375 10/15/2020 3,700,000 3,792,500 SLM CORP 3.875 09/10/2015 50,000 50,503 SLM CORP 5.500 01/25/2023 1,325,000 1,261,670 SLM CORP 6.000 01/25/2017 1,075,000 1,123,375 SLM CORP 7.250 01/25/2022 500,000 525,000 SLM CORP 8.000 03/25/2020 3,075,000 3,328,688 SM ENERGY CO 5.000 01/15/2024 2,100,000 2,005,500 SM ENERGY CO 6.500 11/15/2021 125,000 131,250 SMALL BUSINESS ADMINISTRATION 2.877 09/10/2021 39,130,100 39,874,840 SMALL BUSINESS ADMINISTRATION 3.215 09/10/2020 9,128,574 9,309,482 SMALL BUSINESS ADMINISTRATION 4.620 03/10/2019 7,688,441 8,222,620 SMALL BUSINESS ADMINISTRATION 4.727 02/10/2019 3,602,103 3,839,391 SMALL BUSINESS ADMINISTRATION 5.376 03/10/2017 3,287,209 3,567,103 SMALL BUSINESS ADMINISTRATION 5.471 03/10/2018 12,508,375 13,623,068 SMALL BUSINESS ADMINISTRATION 5.528 09/10/2017 14,643,719 15,712,306 SMALL BUSINESS ADMINISTRATION 5.725 09/10/2018 10,084,132 10,867,974 SMALL BUSINESS ADMINISTRATION 5.902 02/10/2018 7,575,576 8,323,662 SMALL BUSINESS ADMINISTRATION 5.944 08/10/2018 4,699,232 5,202,779

New Jersey Division of Pensions and Benefits 175 Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

SMITHFIELD FOODS INC 6.625% 08/15/2022 $1,000,000 1,075,000 SMITHFIELD FOODS INC 7.750 07/01/2017 1,000,000 1,102,500 SMURFIT KAPPA TREASURY 7.500 11/20/2025 2,795,000 3,046,550 SOFTBANK CORP 4.500 04/15/2020 4,775,000 4,601,906 SONIC AUTOMOTIVE INC 5.000 05/15/2023 625,000 606,250 SONIC AUTOMOTIVE INC 7.000 07/15/2022 3,055,000 3,329,950 SOPHIA FINANCE 9.750 01/15/2019 2,625,000 2,808,750 SORENSON COMMUNICATIONS 10.500 02/01/2015 175,000 138,250 SOUTH BROWARD FL HOSPITAL DISTRICT 7.278 05/01/2044 15,000,000 16,652,550 SC ST PUBLIC SERVICE AUTHORITY 4.551 12/01/2030 24,000,000 23,731,440 SC ST PUBLIC SERVICE AUTHORITY 6.454 01/01/2050 10,000,000 11,536,000 SOUTHERN GRAPHICS INC 8.375 10/15/2020 2,450,000 2,523,500 SPECIALTY BRANDS ESCROW CORP. 6.375 11/15/2020 2,050,000 2,147,375 SPECIALTY BRANDS ESCROW CORP. 6.625 11/15/2022 1,450,000 1,518,875 SPECTRA ENERGY CAPITAL 6.750 02/15/2032 39,000,000 43,719,897 SPECTRA ENERGY CAPITAL 7.500 09/15/2038 25,000,000 31,223,425 SPECTRUM BRANDS INC 6.750 03/15/2020 1,050,000 1,106,438 SPECTRUM BRANDS INC 9.500 06/15/2018 3,295,000 3,608,025 SPEEDWAY MOTORSPORTS INC 6.750 02/01/2019 75,000 78,375 SPENCER SPIRIT HOLDINGS 9.000 05/01/2018 1,050,000 1,023,750 SPIRIT AEROSYSTEMS INC 6.750 12/15/2020 50,000 52,000 SPL LOGISTICS ESCROW LLC 8.875 08/01/2020 825,000 858,000 SPRING BRANCH TX INDEP SCHOOL 6.038 02/01/2039 13,000,000 13,983,710 SPRINGLEAF FINANCE CORP 6.000 06/01/2020 3,375,000 3,020,625 SPRINGLEAF FINANCE CORP 6.900 12/15/2017 3,550,000 3,483,438 SPRINT CAPITAL CORP 6.875 11/15/2028 500,000 480,000 SPRINT CAPITAL CORP 6.900 05/01/2019 4,250,000 4,420,000 SPRINT CAPITAL CORP 8.750 03/15/2032 8,400,000 9,240,000 SPRINT NEXTEL CORP 6.000 12/01/2016 500,000 527,500 SPRINT NEXTEL CORP 6.000 11/15/2022 4,675,000 4,581,500 SPRINT NEXTEL CORP 7.000 03/01/2020 1,000,000 1,080,000 SPRINT NEXTEL CORP 7.000 08/15/2020 1,610,000 1,690,500 SPRINT NEXTEL CORP 8.375 08/15/2017 3,445,000 3,867,013 SPRINT NEXTEL CORP 9.125 03/01/2017 250,000 287,500 SPRINT NEXTEL CORP 11.500 11/15/2021 1,745,000 2,320,850 SQUARETWO FINANCIAL CORP 11.625 04/01/2017 1,225,000 1,255,625 STAR GAS PARTNER/FINANCE 8.875 12/01/2017 700,000 721,000 STATE AUTO FINANCIAL CORP 6.250 11/15/2013 1,000,000 1,001,798 STATE OF ISRAEL 3.150 06/30/2023 15,000,000 14,055,000 STATE OF ISRAEL 5.125 03/26/2019 25,000,000 28,100,000 STATE PUB SCHOOL BUILDING AUTH OF PA 5.000 09/15/2027 5,000,000 5,302,500 STATION CASINOS LLC 7.500 03/01/2021 75,000 75,750 STEEL DYNAMICS INC 6.125 08/15/2019 950,000 1,004,625 STEEL DYNAMICS INC 6.375 08/15/2022 250,000 263,750 STEEL DYNAMICS INC 7.625 03/15/2020 250,000 266,250 STEELCASE INC 6.375 02/15/2021 1,000,000 1,080,144 STHI HOLDING CORP 8.000 03/15/2018 1,500,000 1,620,000 STONE ENERGY CORP 8.625 02/01/2017 4,275,000 4,456,688 STONERIDGE INC 9.500 10/15/2017 275,000 294,250

176 New Jersey Division of Pensions and Benefits Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

STRATUS TECHNOLOGIES 12.000% 03/29/2015 $48 48,240 STREAM GLOBAL SERVICES 11.250 10/01/2014 700,000 707,000 UNITED STATES TREASURY STRIPS 0.000 08/15/2025 165,000,000 114,690,015 STUDIO CITY FINANCE LTD 8.500 12/01/2020 500,000 535,000 SUBURBAN PROPANE PARTNERS 7.375 03/15/2020 100,000 104,000 SUBURBAN PROPANE PARTNERS 7.375 08/01/2021 154,000 160,160 SUBURBAN PROPANE PARTNERS 7.500 10/01/2018 147,000 154,350 SUGAR HOUSE GAMING PROPERTIES 6.375 06/01/2021 1,300,000 1,257,750 SUMMIT MID HOLDINGS 7.500 07/01/2021 575,000 583,625 SUN PRODUCTS CORP 7.750 03/15/2021 2,905,000 2,883,213 SUNCOKE ENERGY PARTNERS 7.375 02/01/2020 150,000 153,000 SUNEDISON INC 7.750 04/01/2019 825,000 781,688 SUNGARD DATA SYSTEMS INC 6.625 11/01/2019 1,720,000 1,728,600 SUNGARD DATA SYSTEMS INC 7.375 11/15/2018 1,500,000 1,582,500 SUNGARD DATA SYSTEMS INC 7.625 11/15/2020 1,500,000 1,590,000 SUPERVALU INC 6.750 06/01/2021 300,000 279,000 SWIFT ENERGY CO 7.875 03/01/2022 2,000,000 1,990,000 SWIFT SERVICES HOLDINGS 10.000 11/15/2018 2,675,000 2,955,875 SYMBION INC 8.000 06/15/2016 75,000 78,000 SYNCREON GLOBAL 9.500 05/01/2018 150,000 159,000 SYNIVERSE HOLDINGS INC 9.125 01/15/2019 1,000,000 1,067,500 TALOS PRODUCTION 9.750 02/15/2018 500,000 475,000 TAMINCO GLOBAL CHEMICAL 9.750 03/31/2020 1,350,000 1,503,563 TARGA RESOURCES PARTNERS 4.250 11/15/2023 2,860,000 2,552,550 TARGA RESOURCES PARTNERS 5.250 05/01/2023 2,205,000 2,111,288 TARGA RESOURCES PARTNERS 6.875 02/01/2021 225,000 239,063 TAYLOR MORRISON COMMUNICATIONS 5.250 04/15/2021 860,000 817,000 TAYLOR MORRISON COMMUNICATIONS 7.750 04/15/2020 1,668,000 1,797,270 TAYLOR MORRISON COMMUNICATIONS 7.750 04/15/2020 54,000 58,185 TCI COMMUNICATIONS INC 8.750 08/01/2015 10,000,000 11,564,320 TEEKAY CORP 8.500 01/15/2020 325,000 353,438 TEKNI PLEX INC 9.750 06/01/2019 900,000 956,250 TELEFLEX INC 6.875 06/01/2019 225,000 237,375 TELUS CORP 3.350 04/01/2024 22,500,000 19,774,705 TENET HEALTHCARE CORP 4.375 10/01/2021 1,000,000 917,500 TENET HEALTHCARE CORP 4.500 04/01/2021 1,775,000 1,655,188 TENET HEALTHCARE CORP 4.750 06/01/2020 1,000,000 963,750 TENET HEALTHCARE CORP 6.750 02/01/2020 1,000,000 970,000 TENET HEALTHCARE CORP 8.000 08/01/2020 750,000 775,313 TENN VALLEY AUTHORITY 1.875 08/15/2022 40,000,000 36,650,000 TENN VALLEY AUTHORITY 7.125 05/01/2030 10,000,000 13,787,460 TENNECO INC 7.750 08/15/2018 115,000 123,050 TENNESSEE GAS PIPELINE 8.000 02/01/2016 105,000 121,629 TEREX CORP 6.000 05/15/2021 200,000 199,500 TERVITA CORP 8.000 11/15/2018 1,575,000 1,582,875 TESORO CORP 4.250 10/01/2017 1,075,000 1,101,875 TESORO CORP 9.750 06/01/2019 1,000,000 1,105,000 TESORO LOGISTICS 5.875 10/01/2020 75,000 73,875 TEVA PHARMACEUTICAL FINANCE 3.650 11/10/2021 10,000,000 10,000,920

New Jersey Division of Pensions and Benefits 177 Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

TEXAS COMPETITIVE 10.250% 11/01/2015 $1,690,000 156,325 TEXAS EASTERN TRANSMISSIONS 7.000 07/15/2032 32,600,000 40,100,575 TEXAS INSTRUMENTS INC 2.250 05/01/2023 11,000,000 9,883,302 TEXAS STATE 5.517 04/01/2039 10,000,000 11,329,000 THERMADYNE HOLDINGS CORP 9.000 12/15/2017 350,000 377,125 THOMPSON CREEK METALS CO 7.375 06/01/2018 200,000 165,000 THOMPSON CREEK METALS CO 12.500 05/01/2019 925,000 888,000 TIME WARNER COS INC 7.570 02/01/2024 10,000,000 12,485,810 TITAN INTERNATIONAL INC 7.875 10/01/2017 150,000 157,500 TOLL BROS FINANCE CORP 4.375 04/15/2023 1,100,000 1,023,000 TOLL BROS FINANCE CORP 5.875 02/15/2022 1,375,000 1,436,875 TOLL BROS FINANCE CORP 6.750 11/01/2019 100,000 113,000 TOLL BROS FINANCE CORP 8.910 10/15/2017 100,000 118,500 TOMKINS INC 9.000 10/01/2018 604,000 658,360 TOPS HOLDINGS CORP 8.875 12/15/2017 325,000 351,813 TOPS HOLDINGS CORP 8.750 06/15/2018 850,000 835,125 TOSCO CORP 8.125 02/15/2030 45,000,000 62,332,875 TOWNSQUARE RADIO 9.000 04/01/2019 2,750,000 2,928,750 TOYS R US INC. 7.375 09/01/2016 250,000 249,375 TOYS R US INC. 10.375 08/15/2017 525,000 525,000 TOYS R US INC. 10.750 07/15/2017 600,000 633,000 TPC GROUP INC 8.750 12/15/2020 2,025,000 2,070,563 TRAC INTERMODAL CORP 11.000 08/15/2019 275,000 302,500 TRANS CANADA PIPELINES 7.250 08/15/2038 30,000,000 39,038,700 TRANS CANADA PIPELINES 9.875 01/01/2021 38,000,000 52,878,064 TRANS UNION 11.375 06/15/2018 1,000,000 1,107,500 TRANSDIGM INC 5.500 10/15/2020 200,000 189,000 TRANSDIGM INC 7.500 07/15/2021 2,350,000 2,402,875 TRANSDIGM INC 7.750 12/15/2018 3,500,000 3,683,750 TRANSOCEAN 7.500 04/15/2031 60,000,000 66,688,020 TRANSUNION HOLDING CO 8.125 06/15/2018 3,250,000 3,440,938 TRANSUNION HOLDING CO 9.625 06/15/2018 975,000 1,040,813 TRAVELPORT LLC 11.875 09/01/2016 250,000 232,500 TRAVELPORT LLC 13.875 03/01/2016 1,440,000 1,472,400 TREEHOUSE FOODS INC 7.750 03/01/2018 250,000 264,688 TRINIDAD DRILLING LTD 7.875 01/15/2019 175,000 183,750 TRINSEO MATERIALS OPERATING 8.750 02/01/2019 3,100,000 2,960,500 TRIUMPH GROUP INC 4.875 04/01/2021 1,250,000 1,243,750 TRIUMPH GROUP INC 4.875 04/01/2021 450,000 447,750 TRIUMPH GROUP INC 8.000 11/15/2017 125,000 131,563 TRIUMPH GROUP INC 8.625 07/15/2018 400,000 432,000 TRUVEN HEALTH ANALYTICS 10.625 06/01/2020 3,500,000 3,850,000 TRW AUTOMOTIVE INC 8.875 12/01/2017 1,000,000 1,062,500 TSY 1 7/8 2022 I/L GILT 1.875 11/22/2022 84,913,500 157,533,896 UNITED STATES INFLATIONARY BONDS 0.125 04/15/2017 230,357,250 236,350,224 UNITED STATES INFLATIONARY BONDS 0.125 01/15/2023 478,534,000 463,990,873 UNITED STATES INFLATIONARY BONDS 0.125 04/15/2018 502,985,000 515,952,456 UNITED STATES INFLATIONARY BONDS 1.125 01/15/2021 217,919,100 233,054,235 UNITED STATES INFLATIONARY BONDS 1.250 04/15/2014 54,939,000 55,690,126

178 New Jersey Division of Pensions and Benefits Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

UNITED STATES INFLATIONARY BONDS 1.750% 01/15/2028 $55,499,500 62,181,140 UNITED STATES INFLATIONARY BONDS 2.375 01/15/2025 30,841,250 36,739,639 TUCSON AZ COPS 6.750 07/01/2030 5,000,000 5,745,650 TW TELECOM HOLDINGS INC 8.000 03/01/2018 150,000 159,000 UCI INTERNATIONAL INC 8.625 02/15/2019 2,325,000 2,371,500 UNIFRAX I LLC/UNIFRAX HO 7.500 02/15/2019 1,375,000 1,402,500 UNION PACIFIC CORP 6.625 02/01/2029 14,000,000 17,544,898 UNISYS CORP 6.250 08/15/2017 200,000 212,000 UNIT CORP 6.625 05/15/2021 225,000 229,500 UNITED AIRLINES INC 6.750 09/15/2015 200,000 205,500 UNITED COMMUNITIES LLC 5.611 09/15/2051 19,928,467 19,260,863 UNITED CONTINENTAL HOLDINGS 6.375 06/01/2018 175,000 171,938 UNITED PARCEL SERVICE 5.125 04/01/2019 25,000,000 28,746,325 UNITED REFINING 10.500 02/28/2018 100,000 110,250 UNITED RENTALS NORTH AMERICA 5.750 07/15/2018 250,000 262,500 UNITED RENTALS NORTH AMERICA 6.125 06/15/2023 200,000 199,000 UNITED RENTALS NORTH AMERICA 7.375 05/15/2020 2,850,000 3,042,375 UNITED RENTALS NORTH AMERICA 7.625 04/15/2022 4,820,000 5,217,650 UNITED RENTALS NORTH AMERICA 8.250 02/01/2021 1,550,000 1,697,250 UNITED RENTALS NORTH AMERICA 8.375 09/15/2020 1,000,000 1,082,500 UNITED RENTALS NORTH AMERICA 10.250 11/15/2019 1,125,000 1,260,000 UNITED TECHNOLOGIES CORP 7.500 09/15/2029 22,000,000 30,223,974 UNITED TECHNOLOGIES CORP 8.875 11/15/2019 20,000,000 26,635,680 UNITEDHEALTH GROUP INC 2.875 03/15/2023 10,000,000 9,396,130 UNITYMEDIA HESSEN 5.500 01/15/2023 2,650,000 2,504,250 UNITYMEDIA HESSEN 7.500 03/15/2019 1,500,000 1,578,750 UNIVERSITY OF CINCINNATI OH RECEIPTS 6.484 06/01/2039 8,000,000 8,533,680 UNIVERSITY OF HAWAII HI REVENUE 6.034 10/01/2040 25,000,000 27,910,750 UNIVERSAL HOSPITAL SERVICES 7.625 08/15/2020 400,000 420,000 UNIVISION COMMUNICATIONS 5.125 05/15/2023 500,000 472,500 UNIVISION COMMUNICATIONS 6.750 09/15/2022 2,925,000 3,071,250 UNIVISION COMMUNICATIONS 6.875 05/15/2019 1,050,000 1,102,500 UNIVISION COMMUNICATIONS 7.875 11/01/2020 2,250,000 2,435,625 UNIVISION COMMUNICATIONS 8.500 05/15/2021 1,500,000 1,593,750 UPC HOLDING BV 9.875 04/15/2018 1,650,000 1,790,250 UPCB FINANCE 7.250 11/15/2021 2,100,000 2,220,750 UPCB FINANCE 6.875 01/15/2022 1,000,000 1,035,000 UPS OF AMERICA INC 8.375 04/01/2020 27,000,000 35,570,907 UPS OF AMERICA INC 8.375 04/01/2030 10,000,000 14,022,520 US AIRWAYS 6.750 12/03/2022 75,000 78,000 US AIRWAYS 5.450 06/03/2018 100,000 94,500 US AIRWAYS 6.125 06/01/2018 275,000 259,875 US COAT ACQUSITION INC. 7.375 05/01/2021 3,010,000 3,070,200 US FOODS INC 8.500 06/30/2019 4,850,000 5,068,250 US STEEL CORP 6.875 04/01/2021 100,000 97,000 UNITED STATES TREASURY BONDS 0.250 06/30/2015 500,000,000 500,195,500 UNITED STATES TREASURY BONDS 6.000 02/15/2026 25,000,000 33,562,500 UNITED STATES TREASURY BONDS 6.375 08/15/2027 25,000,000 35,000,000 UNITED STATES TREASURY BONDS 6.500 11/15/2026 50,000,000 70,328,100

New Jersey Division of Pensions and Benefits 179 Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

UNITED STATES TREASURY BONDS 6.625% 02/15/2027 $50,000,000 71,203,100 USG CORP 6.300 11/15/2016 1,000,000 1,020,000 USG CORP 7.875 03/30/2020 1,790,000 1,951,100 USG CORP 8.375 10/15/2018 960,000 1,039,200 USG CORP 9.750 01/15/2018 750,000 851,250 UTAH COUNTY UT TRANSPORTATION 6.510 12/01/2034 7,000,000 7,748,160 UTAH ST TRANSIT AUTHORITY SALES TAX 5.705 06/15/2040 15,000,000 16,177,650 VALEANT PHARMACEUTICALS 6.375 10/15/2020 2,300,000 2,274,125 VALEANT PHARMACEUTICALS 6.500 07/15/2016 1,150,000 1,184,500 VALEANT PHARMACEUTICALS 6.750 10/01/2017 125,000 129,375 VALEANT PHARMACEUTICALS 6.750 08/15/2021 2,925,000 2,928,656 VALEANT PHARMACEUTICALS 6.875 12/01/2018 800,000 820,000 VALEANT PHARMACEUTICALS 7.000 10/01/2020 1,500,000 1,530,000 VALEANT PHARMACEUTICALS 7.250 07/15/2022 1,150,000 1,167,250 VANGUARD HEALTH HOLDING CO. 7.750 02/01/2019 300,000 318,000 VANGUARD HEALTH HOLDING CO. 8.000 02/01/2018 1,500,000 1,590,000 VANTAGE ONCOLOGY LLC 9.500 06/15/2017 1,000,000 990,000 VECTOR GROUP LTD 7.750 02/15/2021 2,375,000 2,452,188 VERISIGN INC 4.625 05/01/2023 3,650,000 3,540,500 VERIZON COMMUNICATIONS 7.750 12/01/2030 60,000,000 77,731,860 VERIZON COMMUNICATIONS 8.750 11/01/2018 8,125,000 10,589,638 VERIZON PENNSYLVANIA LLC 8.350 12/15/2030 19,756,000 25,271,223 VERIZON PENNSYLVANIA LLC 8.750 08/15/2031 17,000,000 22,490,269 VERTELLUS SPECIALTIES 9.375 10/01/2015 500,000 452,500 VIASAT INC 6.875 06/15/2020 2,550,000 2,690,250 VIKING CRUISES LTD 8.500 10/15/2022 625,000 684,375 VIMPELCOM HOLDINGS 5.200 02/13/2019 1,000,000 975,000 VIMPELCOM HOLDINGS 7.504 03/01/2022 600,000 621,000 VIMPELCOM HOLDINGS 7.504 03/01/2022 700,000 724,500 VIRGIN MEDIA SECURED FINANCE 5.250 01/15/2021 3,225,000 3,225,284 VIRGINIA ELECTRIC + POWER CO. 8.875 11/15/2038 15,000,000 23,703,390 VIRGINIA ST RESOURCES AUTHORITY 5.790 11/01/2040 5,000,000 5,544,900 VISANT CORP 10.000 10/01/2017 750,000 691,875 VISKASE COS INC 9.875 01/15/2018 1,000,000 1,057,500 VPII ESCROW CORP 6.750 08/15/2018 300,000 307,500 VPII ESCROW CORP 7.500 07/15/2021 575,000 595,125 VULCAN MATERIALS 6.500 12/01/2016 175,000 189,438 VWR FUNDING INC 7.250 09/15/2017 2,000,000 2,070,000 W + T OFFSHORE INC 8.500 06/15/2019 1,053,000 1,087,223 WAL MART STORES INC 1.125 04/11/2018 20,000,000 19,409,660 WAL MART STORES INC 5.875 04/05/2027 15,000,000 18,204,570 WAL MART STORES INC 7.550 02/15/2030 10,000,000 13,718,010 WALT DISNEY COMPANY/THE 2.750 08/16/2021 10,000,000 9,843,380 WALTER ENERGY INC 8.500 04/15/2021 2,000,000 1,600,000 WALTER ENERGY INC 9.875 12/15/2020 1,000,000 870,000 WARNER CHILCOTT CO LLC 7.750 09/15/2018 2,250,000 2,430,000 WASHINGTON DC CONVENTION 6.764 10/01/2039 20,000,000 20,487,200 WASHINGTON MD SUBURBAN 5.000 06/01/2029 8,000,000 8,609,840 WASHINGTON ST UNIVERSITY 6.414 10/01/2034 10,000,000 11,217,600

180 New Jersey Division of Pensions and Benefits Schedule 26, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Fixed Income June 30, 2013

INTEREST MATURITY FAIR NAME RATE DATE PAR VALUE

WATCO COMPANY/WATCO FINANCE CO. 6.375% 04/01/2023 $3,100,000 3,084,500 WAVEDIVISION ESCROW COMPANY 8.125 09/01/2020 2,975,000 3,079,125 WEATHERFORD BERMUDA 9.625 03/01/2019 40,000,000 50,568,840 WEATHERFORD BERMUDA 9.875 03/01/2039 60,000,000 81,715,560 WELLS ENTERPRISES INC 6.750 02/01/2020 1,450,000 1,518,875 WELLTEC 8.000 02/01/2019 700,000 728,000 WESTERN REFINING INC 6.250 04/01/2021 1,000,000 977,500 WEX INC 4.750 02/01/2023 1,000,000 945,000 WHIRLPOOL CORP 3.700 03/01/2023 1,000,000 958,414 WILLIAM LYON HOMES INC 8.500 11/15/2020 300,000 326,250 WIND ACQUISITION 6.500 04/30/2020 1,225,000 1,215,813 WIND ACQUISITION 7.250 02/15/2018 3,530,000 3,556,475 WIND ACQUISITION 7.250 02/15/2018 200,000 199,500 WIND ACQUISITION 11.750 07/15/2017 5,485,000 5,704,400 WIND ACQUISITION 12.250 07/15/2017 212,625 214,220 WINDSTREAM CORP 6.375 08/01/2023 2,845,000 2,660,075 WINDSTREAM CORP 7.500 04/01/2023 1,175,000 1,192,625 WINDSTREAM CORP 7.500 06/01/2022 3,190,000 3,253,800 WINDSTREAM CORP 7.750 10/01/2021 1,800,000 1,863,000 WINDSTREAM CORP 8.125 08/01/2013 160,000 160,400 WINDSTREAM CORP 8.125 09/01/2018 950,000 1,011,750 WINSTON SALEM NC WATER & SEWER 5.294 06/01/2034 6,000,000 6,343,380 WMG ACQUISITION CORP 6.000 01/15/2021 1,282,000 1,304,435 WMG ACQUISITION CORP 11.500 10/01/2018 1,600,000 1,832,000 WMG HOLDINGS CORP 13.750 10/01/2019 150,000 174,750 WOK ACQUISITION CORP 10.250 06/30/2020 300,000 330,000 WOLVERINE WORLD WIDE 6.125 10/15/2020 580,000 598,850 WPX ENERGY INC 5.250 01/15/2017 1,000,000 1,025,000 WPX ENERGY INC 6.000 01/15/2022 2,290,000 2,312,900 WYNN LAS VEGAS 4.250 05/30/2023 1,000,000 925,000 WYNN LAS VEGAS 5.375 03/15/2022 3,225,000 3,257,250 WYNN LAS VEGAS 7.750 08/15/2020 350,000 388,640 WYNN LAS VEGAS 7.875 05/01/2020 500,000 548,750 YANKEE CANDLE CO 9.750 02/15/2017 1,000,000 1,036,250 YCC HOLDINGS/YANKEE FINANCE 10.250 02/15/2016 400,000 411,000 ZACHRY HOLDINGS INC 7.500 02/01/2020 1,145,000 1,179,350 ZAYO GROUP 8.125 01/01/2020 1,050,000 1,139,250 ZAYO GROUP 10.125 07/01/2020 1,550,000 1,720,500 ZIONS BANCORPORATION 5.800 12/31/2049 1,500,000 1,410,000 Total fixed income $ 15,057,282,748

See accompanying independent auditors’ report.

New Jersey Division of Pensions and Benefits 181 Schedule 27 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Alternative Investments and Global Diversified Credit Funds June 30, 2013

NAME FAIR VALUE

PRIVATE EQUITY FUNDS: AIMS/NJ EURO SMALL AND MID FUND I $115,498,132 AIMS/NJ EURO SMALL AND MID FUND II 139,689,206 AMERICAN INDUSTRIAL PARTNER CAPITAL FUND V 8,689,984 ANACAP CREDIT OPPORTUNITIES II 26,599,362 ANACAP FINANCIAL PARTNERS II 63,664,401 APOLLO INVESTMENT FUND VI 43,130,793 AUDAX MEZZANINE FUND II 11,857,665 AVENUE ASIA SPECIAL SITUATIONS FUND IV 15,404,127 AVENUE SPECIAL SITUATION FUND IV 677,710 AVENUE SPECIAL SITUATION FUND V 6,165,122 BLACKSTONE CAPITAL PARTNERS V 92,398,767 BLACKSTONE CAPITAL PARTNERS VI 8,380,223 BLACKSTONE MEZZANINE PARTNERS II 11,830,292 BLACKSTONE TACTICAL OPPORTUNITIES FUND 112,830,379 CARLYLE MEZZANINE PARTNERS FUND II 53,902,425 CENTERBRIDGE CAPITAL PARTNERS 70,445,829 CENTERBRIDGE CAPITAL PARTNERS II 49,476,251 COURT SQUARE CAPITAL PARTNERS II 78,058,754 CSFB NJDI INVESTMENT FUND 173,450,893 CSFB/NJDI EMERGING OPPORTUNITIES FUND SERIES 2006 70,917,786 CSFB/NJDI EMERGING OPPORTUNITIES FUND SERIES 2008 63,312,493 CSFB/NJDI INVESTMENT SERIES 2006 207,289,123 CSFB/NJDI INVESTMENT SERIES 2008 110,485,682 FAIRVIEW CAPSTONE PARTNERS 81,481,516 FAIRVIEW CAPSTONE PARTNERS II 65,090,997 GENERAL CATALYST GROUP VI 3,988,185 GLEACHER MEZZANINE FUND II 21,171,740 GSO CAPITAL OPPORTUNITIES FUND 47,120,000 GSO CAPITAL OPPORTUNITIES FUND II 32,746,815 HELLMAN + FRIEDMAN CAPITAL PARTNERS VI 64,279,779 HIG BAYSIDE DEBT+LBO FUND II 43,807,580 INTERMEDIA PARTNERS VII L P 114,212,784 JLL PARTNERS FUND V 43,961,935 JLL PARTNERS FUND VI 59,977,906 JP MORGAN VENTURE CAPITAL III 42,063,871 KHOSLA VENTURES IV 8,985,754 KNIGHT/TPG NPL R 49,165,217 KPS SPECIAL SITUATIONS FUND III 14,434,694 LEXINGTON CAPITAL PARTNERS VI 31,364,000 LINDSAY GOLDBERG + BESSEMER II 81,326,180 LINDSAY GOLDBERG III LP 132,715,671 MATLIN PATTERSON GLOBAL OPPORTUNITIES PARTNERS 67,585,663 MHR INSTITUTIONAL PARTNERS III 59,450,479 NB CROSSROADS XVIII VENTURE CAPITAL 44,024,900 NB SECONDARY OPPORTUNITIES FUND II 66,613,767 NB/NJ CUSTOM INVESTMENT FUND 92,859,501 NB/NJ CUSTOM INVESTMENT FUND II 62,937,938 NEW JERSEY ASIA INVESTORS 88,450,223

182 New Jersey Division of Pensions and Benefits Schedule 27, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Alternative Investments and Global Diversified Credit Funds June 30, 2013

NAME FAIR VALUE

NEW JERSEY ASIA INVESTORS II $37,199,428 NEW MOUNTAIN PARTNERS III 89,150,386 NEWSTONE CAPITAL PARTNERS II, LP 40,000,000 NEWSTONE CAPITAL PARTNERS LP 20,000,000 NJHL EUROPE BUYOUT FUND SERIES A 128,896,893 NJHL EUROPE BUYOUT FUND SERIES B 121,916,189 NJHL EUROPE BUYOUT FUND SERIES C 133,405,701 OAK HILL CAPITAL PARTNERS II 38,911,298 OAK HILL CAPITAL PARTNERS III 238,213,862 ONEX PARTNERS II LP 69,259,990 ONEX PARTNERS III L P 83,988,505 PARTNERS GROUP SECONDARY 2006 24,759,643 PARTNERS GROUP SECONDARY 2008 64,852,915 QUADRANGLE CAPITAL PARTNERS II 24,778,741 ROARK CAPITAL PARTNERS III LP 11,529,953 SILVER LAKE PARTNERS III 61,278,867 SONJ PRIVATE OPPORTUNITIES FUND 69,695,657 SONJ PRIVATE OPPORTUNITIES FUND II 286,043,505 STERLING CAPITAL PARTNERS IV 20,333,478 TENAYA CAPITAL VI 10,466,758 TENEX CAPITAL PARTNERS 16,428,588 TENEX CAPTIAL PARTNERS SECONDARY 6,571,436 THE RESOLUTE FUND II 87,255,378 TPG FINANCIAL PARTNERS 11,091,653 TPG GROWTH II 16,775,163 TPG OPPORTUNITIES PARTNERS II 63,116,833 TPG PARTNERS V 130,165,490 TPG PARTNERS VI 138,392,794 TPG STAR 78,971,014 VISTA EQUITY PARTNERS III 95,700,000 VISTA EQUITY PARTNERS IV 94,400,000 WARBURG PINCUS PRIVATE EQUITY IX 127,120,473 WARBURG PINCUS PRIVATE EQUITY VIII 17,859,115 WARBURG PINCUS PRIVATE EQUITY X 384,799,647 WARBURG PINCUS PRIVATE EQUITY XI 58,321,845 WELSH CARSON ANDERSON STOWE XI 81,430,861 WLR RECOVERY FUND IV 69,634,899 TOTAL PRIVATE EQUITY FUNDS 6,006,689,452

New Jersey Division of Pensions and Benefits 183 Schedule 27, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Alternative Investments and Global Diversified Credit Funds June 30, 2013

NAME FAIR VALUE

ABSOLUTE RETURN FUNDS: AG GARDEN PARTNERS LP $9,337,711 AIMS/NJ MULTI-STRATEGY PORTFOLIO LLC 675,628,242 ARCHIPELAGO PARTNERS L.P. 223,878,802 ARDEN GARDEN STATE NJ FUND 538,467,895 ASCEND PARTNERS FUND II 8,280,232 ASIAN CENTURY QUEST (QP) FUND LP 84,115,783 BAY POND PARTNERS L.P. 168,434,450 BLUECREST CAPITAL INTERNATIONAL LIMITED 201,406,867 BREVAN HOWARD FUND LIMITED 214,951,233 CADIAN FUND LP 96,759,598 CANYON BALANCED FUND CAYMAN LTD 159,544,717 CANYON VALUE REALIZATION FUND 115,647,733 CENTERBRIDGE CREDIT PARTNERS 256,830,387 CEVIAN CAPITAL II LP 133,450,305 CLAREN ROAD CREDIT FUND, LTD. 162,729,977 DAVIDSON KEMPNER INSTITUTIONAL PARTNERS 208,871,108 DYAL NJ INVESTORS LP 94,994,995 ELLIOTT ASSOCIATES LP 22,382,000 FARALLON CAPITAL INSTITUTIONAL PARTNERS 85,984,140 GSO CREDIT A PARTNERS LP 324,503,666 GSO SPECIAL SITUATIONS 125,337,370 KING STREET CAPITAL LP 228,634,153 LAZARD RATHMORE FUND, LTD 104,950,257 LYNX BERMUDA LTD 93,413,973 MARATHON SPECIAL OPPORTUNITIES FUND LTD 7,557,581 MKP OPPORTUNITIES PARTNERS, L.P. 159,313,243 OMEGA OVERSEAS PARTNERS LTD CL B2 181,052,264 OZ DOMESTIC PARTNERS II 242,465,668 OZNJ PRIVATE OPPORTUNITIES LP 44,938,562 PERSHING SQUARE INTERNATIONAL LTD 234,467,613 PROTÉGÉ PARTNERS 51,824,338 PROTÉGÉ QB PARTNERS 107,411,566 RC WOODLEY 809,172,694 REGIMENT CAPITAL LTD 159,707,850 RESERVOIR STRATEGIC PARTNERS FUND 108,967,163 SCOPIA PX, LLC 132,731,458 THIRD POINT OFFSHORE FUND LTD 125,738,805 VALUEACT CAPITAL PARTNERS II, LP 200,144,344 VISIUM BALANCED OFFSHORE FUND 115,108,532 WINTON FUTURES FUND CLASS B 206,572,480 YORK CAPITAL MANAGEMENT LP 143,631,206 TOTAL ABSOLUTE RETURN FUNDS 7,369,340,961

184 New Jersey Division of Pensions and Benefits Schedule 27, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Alternative Investments and Global Diversified Credit Funds June 30, 2013

NAME FAIR VALUE

REAL ESTATE FUNDS: AEW CORE PROPERTY TRUST US INC $88,218,471 ASIA DRAGON FUND LIMITED 88,882,493 BLACKROCK DIAMOND PROPERTY FUND 15,913,295 BLACKSTONE REAL ESTATE PARTNERS VII 178,288,862 BLACKSTONE REAL ESTATE PARTNERS VI TE 2 178,731,545 BLACKSTONE REAL ESTATE PARTNERS V 90,793,080 CAPRI URBAN INVESTORS 31,164,216 CARLYLE REALTY PARTNERS V 54,076,124 CB RICHARD ELLIS STRATEGIC PARTNERS EUROPE 23,220,421 CB RICHARD ELLIS STRATEGIC PARTNERS US FUND V 53,918,100 CB RICHARD ELLIS STRATEGIC PARTNERS US FUND IV 8,915,948 CIM FUND III LP 65,900,524 CIM URBAN REIT LLC 67,784,813 CPI CAPITAL PARTNERS EUROPE 22,620,427 CT HIGH GRADE PARTNERS II 683,010,769 EXETER CORE INDUSTRIAL VENTURE 72,000,433 FIVE MILE CAPITAL PARTNERS II LP 56,364,187 GUGGENHEIM STRUCTURE REAL ESTATE 26,196,771 HEITMAN AMERICA REAL ESTATE TRUST 108,447,058 HUNT COMMERCIAL REALTY PARTNERS III LP 15,977,445 HUNT COMMERCIAL REALTY PARTNERS II 15,835,706 HUNT UK REALTY PARTNERS, LP 4,633,011 JP MORGAN ALTERNATIVE PROPERTY FUND DOMESTIC II 5,665,813 L + B DIVERSIFIED STRATEGY PARTNERS 15,325,420 LASALLE ASIA OPPORTUNITIES FUND III LTD 37,026,094 LONE STAR FUND VII (U.S.) 183,167,525 LONE STAR REAL ESTATE FUND II US 48,025,612 LUBERT-ADLER REAL ESTATE FUND VI-B 96,704,001 MACFARLANE URBAN REAL ESTATE FUND II LP 12,314,371 MORGAN STAN PRIME PROPERTY FUND LLC 87,149,736 NJDOI/GMAM CORE PLUS REAL ESTATE INVESTMENT 48,418,812 NJDOI/GMAM OPPORTUNISTIC REAL ESTATE INVESTMENT 12,508,853 NORTHWOOD REAL ESTATE CO-INVESTORS LP — NORTHWOOD REAL ESTATE PARTNERS 18,659,585 PLA RESIDENTIAL FUND III 56,943,334 PRUDENTIAL PROPERTY INVESTMENT SEPARATE 174,853,270 PRUDENTIAL PROPERTY INVESTMENT II 47,237,879 REAL ESTATE CAPITAL ASIA PARTNER III 23,959,125 REALTY ASSOCIATES FUND IX 77,695,298 REALTY ASSOCIATES FUND VIII 53,925,597 RREEF GLOBAL OPPORTUNITIES FUND II 59,529,401 SILVERPEAK LEGACY PARTNERS III 23,511,849 TUCKER DEVELOPMENT AND ACQUISITION FUND 46,015,125 WALTON STREET MEXICO FUND I 22,939,620 WALTON STREET REAL ESTATE FUND VI LP 84,332,837 WALTON STREET REAL ESTATE SIDECAR V LP 8,313,860 WALTON STREET REAL ESTATE V 50,856,080 WARBURG PINCUS REAL ESTATE I 92,870,085

New Jersey Division of Pensions and Benefits 185 Schedule 27, continued STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Alternative Investments and Global Diversified Credit Funds June 30, 2013

NAME FAIR VALUE

WESTBROOK REAL ESTATE FUND VIII $91,916,267 WESTBROOK REAL ESTATE FUND VII 33,092,854 WHEELOCK STREET REAL ESTATE FUND 49,333,994 TOTAL REAL ESTATE FUNDS 3,513,185,996

REAL ASSET FUNDS: BLACKSTONE BX/ NJ CO INVEST LP 49,861,905 BLACKSTONE ENERGY PARTNERS 66,746,693 BLACKSTONE RESOURCES SELECT OFFSHORE FUND 206,649,971 BLACKSTONE TACTICAL OPPORTUNITIES FUND 154,726,426 GSO ENERGY PARTNERS - A LP 153,066,207 RC WOODLEY PARK LP 138,315,582 SCHRODER COMMODITY PORTFOLIO 328,475,253 SHERIDAN PRODUCTION PARTNERS IA 43,565,000 SHERIDAN PRODUCTION PARTNERS IIB 83,292,000 THE ETAP FUND LLC 140,006,333 THE TAP FUND LLC 108,806,054 TPF II 49,598,888 TOTAL REAL ASSET FUNDS 1,523,110,312

GLOBAL DIVERSIFIED CREDIT FUNDS: BLACKROCK CREDIT INVESTORS CO-INVEST 26,350,855 BLACKROCK CREDIT INVESTORS 68,206,961 CERBERUS NJ CREDIT OPPORTUNITIES FUND 212,599,200 GOLDENTREE CREDIT OPPORTUNITIES LP 396,912,181 KNIGHT TPG NPL C L.P. 74,087,319 OCH ZIFF CAPITAL MANAGEMENT 811,409,573 OZSC II 148,182,980 TAC 2007 4,627,392 TPG SPECIALITY LENDING INC TSL 72,322,292 TOTAL GLOBAL DIVERSIFED CREDIT FUNDS 1,814,698,753 TOTAL ALTERNATIVE INVESTMENTS AND GLOBAL DIVERSIFIED FUNDS $ 20,227,025,474

See accompanying independent auditors’ report.

186 New Jersey Division of Pensions and Benefits Schedule 28 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS Common Pension Funds — Portfolio of Investments Derivatives June 30, 2013

CONTRACT CONTRACTS/ FAIR NAME TYPE SHARES VALUE

SPDR S+P ETF TRUST 162 exp 8/17/2013 PUT 15,000 $6,675,000 Total options contract 6,675,000

UNREALIZED NAME CONTRACTS GAIN/(LOSS)

S&P 500 INDEX E-MINI exp 9/20/2013 800 $292,000 U.S. TREASURY LONG BOND (CBT) exp 9/19/2013 2,100 (525,000) Total futures contracts (233,000) Total derivatives $6,442,000

See accompanying independent auditors’ report.

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190 New Jersey Division of Pensions and Benefits Mailing Address: PO Box 295 Trenton, NJ 08625-0295 Location: 50 West State Street State of New Jersey Trenton, New Jersey CHRIS CHRISTIE DEPARTMENT OF THE TREASURY ANDREW P. SIDAMON-ERISTOFF Governor DIVISION OF PENSIONS AND BENEFITS State Treasurer (609) 292-7524 TDD (609) 292-7718 KIM GUADAGNO www.state.nj.us/treasury/pensions FLORENCE J. SHEPPARD Lt. Governor Acting Director

June 30, 2013

The Division of Investment ("Division"), under the jurisdiction of the State Investment Council (the "Council"), is responsible for the investment management of the assets of seven public pension systems: The Consolidated Police & Firemen's Pension Fund, the Judicial Retirement System, the Police & Firemen's Retirement System, the Prison Officers Pension Fund, the Public Employees' Retirement System, the State Police Retirement System, and the Teachers' Pension and Annuity Fund (collectively referred to as the "Pension Fund"). The Division was created in 1950 by the New Jersey Legislature (P.O. 1950, c.270) to centralize all functions relating to the purchase, sale or exchange of securities for the State's diverse finds under experi- enced and professional management. The statute also established the Council to formulate investment procedures and policies to be followed by the Director. The statute vests investment authority in the Director, who is appointed by the State Treasurer from candidates nominated by the Council. New and amended regulations adopted by the Council after public comments are filed with the Office of Administrative Law and reported in the New Jersey Register. The Council is comprised of 16 members, appointed to fixed terms. Nine members are appointed by the Governor for staggered five-year terms, and are drawn traditionally from the corporate investment community. Eight of these nine hold appointments subject to the advice and consent of the Senate, and one appointee is selected by the Governor from nominees submitted jointly by the President of the Senate and Speaker of the Assembly. Two members are appointed by the Governor for five-year terms from nominees submitted by the New Jersey State AFL-CIO, with at least one appointed member being a member of a union representing police officers or firefighters. Two members are appointed by the Governor for three year terms from nominees submitted by the New Jersey Education Association and the State Troopers Fraternal Organization. Three members are designated to the Council for three-year terms by the respective pension system's board of trustees for the Public Employees' Retirement System, the Police & Firemen's Retirement System Board, and the Teachers' Pension and Annuity Fund. State law requires that no Council member shall hold any office, position or employment with any political party, and none can benefit from the transactions of the Division. All investments by the Director must conform to the heightened "prudent person" standard set by the New Jersey Legislature (P.L.1997, c.26). This standard requires the Director "to manage and invest the portfolio solely in the interests of the beneficiaries of the portfolio and for the exclusive purpose of providing financial benefits to the beneficiaries of the portfolio." To the best of our knowledge, performance is calculated using the time-weighted return based on the modified Dietz method.

Christopher McDonough Acting Director, Division of Investment

New Jersey Division of Pensions and Benefits 191 INVESTMENTS

STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS State Investment Council Key Regulations Pertaining to Pension Fund Assets (at June 30, 2013) • Public equity investments are limited to no more than 70 percent of the portfolio, including both domestic and international equities. • Investments in international securities are limited to 30 percent of the portfolio, including both international equities and fixed income obligations. • The market value of securities of companies in emerging markets is limited to 50 percent of the percentage derived by (1) dividing the total market capitalization of companies included in the MSCI Emerging Market Index by (2) the total market capitalization of the companies included in the MSCI All-Country World Ex-United States Index of the total market value of the assets held by Common Pension Fund D. • The currency exposure on international investments may be hedged through currency transactions. • Unlimited investment is permitted in securities issued by the U.S. Government and designated agencies. • Investment in domestic and international corporate obligations, non-convertible preferred stocks of U.S. Corporations, and collateralized notes and mortgages are subject to a minimum rating requirement of Baa3 by Moody’s, BBB- by Standard & Poor’s, and BBB- by Fitch Ratings. Investment in mortgage backed passthrough securities are subject to a minimum rating requirement of A3 by Moody’s, A- by Standard & Poor’s, and A- by Fitch Ratings. Up to eight percent of the pension assets may be invested in these securities not meeting the minimum rating requirements. • Up to 3 percent of the domestic equity portfolio may consist of debt in lieu of common stock, regardless of the credit rating of the issuing company. • Investments in international government and agency obligations are limited to direct debt obligations of a sovereign government or its political subdivisions, debt obligations of agencies of a sovereign government which are unconditionally guaranteed as to principal and interest by the sovereign government’s full faith and credit, and debt obligations of international agencies that are directly backed by the collective credit of multiple sovereign governments. • Investments in fixed income securities such as municipal bonds, commercial paper, repurchase agreements, and certificates of deposit are all permitted by specific regulations which specify high credit standards and con- servative investment limits. • Subject to limitations established by the State Investment Council, futures contracts, certain options contracts and exchange-traded funds may be utilized in the management of the portfolios. • The Council regulations contain limits on (1) the percentage of the portfolio that can be invested in any one security and (2) the percentage of the outstanding amount of any one security that can be owned by the portfolio. These limits help to insure that the portfolio is adequately diversified and that competitive market pricing is obtained. • Investments in alternative investments are limited to no more than 38% of the portfolio in the aggregate, with individual category limitations for private equity (12%), real estate (9%), real assets (7%), and hedge funds (15%).

Proxy Voting • Proxy voting policy addresses key issues. • The Division seeks to vote all proxies received, unless shares are out on loan. Under certain circumstances, the Division may restrict shares from being loaned, or recall loaned shares in order to preserve the right to vote on proxy issues.

192 New Jersey Division of Pensions and Benefits INVESTMENTS

STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS

Rate of Return

Annualized 2013 3-Year 5-Year

(1) Total Pension Fund 11.78% 10.59% 5.32%

Equity Segment Common Pension Fund A (Domestic Equities) 21.56 18.59 8.13 S&P 1500 Index 21.13 18.60 7.27 Common Pension Fund D (International Equities) 11.90 5.46 (1.28) MSCI All World Country Index (ex US)-net 13.63 7.99 (0.80)

Fixed Income Segment Common Pension Fund B (Domestic Fixed Income) 1.73 7.70 9.24 Common Pension Fund B Blended Benchmark 0.87 6.64 8.28 Alternative Investments Segment Common Pension Fund E 11.63 10.12 1.50 Hedge Funds 12.58 7.13 1.66 HFRI Fund of Funds Composite (2) 8.41 3.18 (0.51) Private Equity 14.86 13.59 6.18 Cambridge Private Equity Index (3) 12.85 15.09 7.46 Real Estate 13.17 12.94 (3.66) NCREIF Property Index 10.73 13.14 2.79 Real Assets/Commodities (0.88) 4.77 (9.01) DJUBS TR Index (8.01) (0.26) (11.61)

Note: Performance is calculated using the time-weighted return based on the modified Dietz method.

(1) Excludes performance on Police and Fire Mortgages. (2) Index is reported on one month lag. (3) Index is reported on one quarter lag.

New Jersey Division of Pensions and Benefits 193 INVESTMENTS

STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS

Pension Fund Asset Allocation June 30, 2013

Actual Target Difference Allocation % % % $ Absolute Return/Risk Mitigation 2.83 4.00 (1.17) 2,017.56 Risk Mitigation 2.83 4.00 (1.17) 2,107.56 Cash Equivalents(1) 4.57 1.50 3.07 3,404.25 TIPS 2.39 2.50 (0.11) 1,782.93 US Treasuries 0.44 2.50 (2.06) 328.31 Total Liquidity 7.41 6.50 0.91 5,515.49 Investment Grade Credit 13.59 13.00 0.59 10,120.23 High Yield Fixed Income 4.87 6.00 (1.13) 3,623.46 Credit Oriented Hedge Funds 2.90 4.00 (1.10) 2,156.32 Debt Related Private Equity 1.08 1.50 (0.42) 806.02 Police and Fire Mortgage Program(2) 1.13 1.50 (0.37) 838.80 Total Income 23.57 26.00 (2.43) 17,544.82 Commodities and Other Real Assets 2.53 4.00 (1.47) 1,886.55 Real Estate 5.05 5.50 (0.45) 3,762.52 Total Real Return 7.59 9.50 (1.91) 5,649.07 US Equity 27.54 23.80 3.74 20,504.23 Non-US Developed Markets Equity 12.52 12.50 0.02 9,317.45 Emerging Markets Equity 6.87 7.00 (0.13) 5,117.14 Equity Oriented Hedge Funds 4.11 4.50 (0.39) 3,062.74 Buyouts/Venture Capital 6.99 6.20 0.79 5,200.67 Total Global Growth 58.03 54.00 4.03 43,202.24 Other Cash and Recievables 0.57 0.00 0.57 426.71 Total Pension Fund 100.00 100.00 0.00 74,445.89

(1) The cash aggregate comprises the four common fund and seven plan cash accounts. (2) Police & Fire Mortgage Program are private mortgages that cannot be sold. Totals may not equal sum of components due to rounding.

194 New Jersey Division of Pensions and Benefits INVESTMENTS

STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS

*Alternative Investment Program commenced 9/05

New Jersey Division of Pensions and Benefits 195 INVESTMENTS

STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS

U.S. EQUITIES MARKET Portfolio Sector Weightings June 30, 2013

INTERNATIONAL EQUITIES MARKETS Portfolio Sector Weightings June 30, 2013

196 New Jersey Division of Pensions and Benefits INVESTMENTS

STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS

LIST OF THE LARGEST ASSETS HELD

Largest Domestic Stock Holdings (By Fair Value) June 30, 2013 Fair Value Shares Stock (USD) 1,414,000 Apple Inc. $560,057,120 5,300,000 Exxon Mobil Corp. 478,855,000 11,650,000 Microsoft Corp. 402,274,500 9,259,890 Wells Fargo & Co. 382,155,660 6,105,000 J.P. Morgan Chase & Co. 322,282,950 364,000 Google Inc. 320,454,680 6,570,000 Merck & Co. Inc. 305,176,500 3,674,945 Procter & Gamble Co. 282,934,016 3,250,000 Johnson & Johnson 279,045,000 9,463,112 Pfizer Inc. 265,061,767

Largest Domestic Bond Holdings (By Fair Value) June 30, 2013

Fair Value Par Bonds Coupon Due (USD) 502,985,000 US Treasury Tips 0.125% 4/15/2018 $515,952,456 500,000,000 US Treasury Bonds 0.250 6/30/2015 500,195,500 478,534,000 US Treasury Tips 0.125 1/15/2023 463,990,873 230,357,250 US Treasury Tips 0.125 4/15/2017 236,350,224 217,919,100 US Treasury Tips 1.125 1/15/2021 223,054,235 165,000,000 US Treasury Strips 0.000 8/15/2025 114,690,015 98,494,000 AT+T Inc 6.500 9/1/2037 111,750,997 89,000,000 Aid Israel 5.500 4/26/2024 108,144,879 80,000,000 Nabors Industries Inc. 9.250 1/15/2019 99,258,160 100,000,000 EMC Corp. 1.875 6/1/2018 98,850,300

A complete listing of the portfolio is available on the Division of Investment’s Web site at www.state.nj.us/treasury/doinvest.

New Jersey Division of Pensions and Benefits 197 INVESTMENTS

STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS

Largest International Stock Holdings (By Fair Value) June 30, 2013

Fair Value Shares Stock (USD) 29,222,500 Vanguard FTSE Emerging Markets $1,133,248,550 22,954,600 IShares MSCI Emerging Markets 885,358,922 746,219 Roche Holding AG 185,342,139 2,550,000 IShares MSCI Emerging Markets 145,630,500 2,016,908 Nestle SA 132,058,818 2,200,000 IShares MSCI EAFE ETF 126,236,000 752,177 L’Oreal Prime De Fidelite 123,436,731 4,761,385 Glaxosmithkline PLC 119,011,877 11,092,504 HSBC Holdings PLC 114,739,715 97,495 Samsung Electronics Co. LTD 114,564,415

Largest International Bond Holdings (By Fair Value) June 30, 2013 Fair Value Par Bonds Coupon Due (USD) 84,913,500 TSY 1 7/8% 2022 I/L GILT 1.875 11/22/2022 $157,533,896 140,000,000 Province of British Columbia 2.650 9/22/2021 139,374,200 99,000,000 Province of Quebec 7.500 9/15/2029 135,990,855 69,000,000 Hydro Quebec 8.500 12/1/2029 102,041,685 75,000,000 Province of Ontario 4.400 4/14/2020 83,160,300 90,000,000 Province of British Columbia 2.000 10/23/2022 82,746,000 87,000,000 Province of Manitoba 2.100 9/6/2022 80,831,700 60,000,000 Province of Manitoba 9.625 12/1/2018 80,811,480 75,000,000 Province of Ontario 1.650 9/27/2019 71,647,500 51,000,000 Devon Financing Co. LLC 7.875 9/30/2031 66,037,860

A complete listing of the portfolio is available on the Division of Investment’s Web site at www.state.nj.us/treasury/doinvest.

198 New Jersey Division of Pensions and Benefits INVESTMENTS

STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS

Commission on Global Securities Fiscal Year 2013

Total Commissions Brokers Shares(1) Commissions(1) per Share J.P. Morgan Securities LLC 59,342,229 $1,744,900 $0.029 Instinet, LLC 72,414,994 1,736,808 0.024 Credit Suisse Securities LLC 76,314,897 1,502,890 0.020 Morgan Stanley & Co., LLC 606,364,458 1,064,300 0.002 Citigroup Global Markets Inc. 35,524,576 973,216 0.027 Deutsche Bank AG 76,444,907 657,038 0.009 Goldman, Sachs & Co. 41,285,921 638,507 0.015 Capital Institutional Services, Inc. 18,206,675 564,943 0.031 UBS Securities LLC 17,409,458 561,197 0.032 Sanford C. Bernstein & Co., LLC 23,960,846 484,068 0.020

(1) Excludes options written on approximately 92.9 million shares with total commissions of $871,000.

A complete listing of the portfolio is available on the Division of Investment’s Web site at www.state.nj.us/treasury/doinvest.

New Jersey Division of Pensions and Benefits 199 INVESTMENTS

STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS

Schedule of Fees Year ending June 30, 2013

Net Assets under Basis (000’s) Management Fees Points Investment Advisers’ fees: Fixed Income advisers $ 1,425,987 $ 4,504 Emerging Market advisers 2,782,998 16,095 $ 4,208,985 20,599 48.941 Alternative investment and global diversified credit funds $ 20,297,063 378,061 186.264 Other investment service fees: Custodian 119 Security Lending Fees 2,721 Investment consultants 2,759 5,599 Total $ 74,446,450 $ 404,259 54.302

200 New Jersey Division of Pensions and Benefits ACTUARIAL SECTION This page is intentionally blank.

202 New Jersey Division of Pensions and Benefits April 3, 2013

Board of Trustees Public Employees' Retirement System of New Jersey

Re: Actuary’s Certification Letter

Members of the Board:

An actuarial valuation of the Public Employees’ Retirement System of New Jersey (“PERS”) is performed annually to measure the ongoing costs of the System (with required contributions determined separately for the State and Local employers) and the progress towards the funding goals of the System over time. In general, the financial goals of the PERS are a pattern of contributions, which is sufficient to cover the normal cost of the System plus the contribution towards the unfunded accrued liability.

In accordance with the New Jersey statutes, employers are required to make two contributions to the System, a normal contribution and an accrued liability contribution. The normal contribution for basic allowances and cost of living adjustments (COLA’s) is defined under the Projected Unit Credit funding method as the present value of the benefits accruing during the current year. Prior to the July 1, 2010 valuation, the unfunded accrued liability contribution for basic allowances and COLA’s was determined as a level percentage of pay required to amortize the unfunded accrued liability over 30 years in annual payments increasing by 4% per year. The funding reform provisions of Chapter 78, P.L. 2011 changed the methodology used to amortize the unfunded accrued liability. Beginning with the July 1, 2010 actuarial valuation, the accrued liability contribution shall be computed so that if the contribution is paid annually in level dollars, it will amortize the unfunded accrued liability over an open 30 year period. Beginning with the July 1, 2019 actuarial valuation, the accrued liability contribution shall be computed so that if the contribution is paid annually in level dollars it will amortize the unfunded accrued liability over a closed 30 year period (i.e., for each subsequent actuarial valuation, the amortization period shall decrease by one year). Beginning with the July 1, 2029 actuarial valuation when the remaining amortization period reaches 20 years, any increase or decrease in the unfunded accrued liability as a result of actuarial losses or gains for subsequent valuation years shall serve to increase or decrease, respectively, the amortization period for the unfunded accrued liability, unless an increase in the amortization period will cause it to exceed 20 years. If an increase in the amortization period as a result of actuarial losses for a valuation year would exceed 20 years, the accrued liability contribution shall be computed for the valuation year using a 20 year amortization period.

The valuation reflects the funding reform provisions of Chapter 1, P.L. 2010. Chapter 1, P.L. 2010 allows the State Treasurer to phase in to the full recommended pension contribution. The State would be in compliance with its funding requirement provided the State makes a payment of at least 1/7th of the full contribution, as computed by the actuaries, in the State fiscal year commencing July 1, 2011 and makes a payment in each subsequent fiscal year that increases by at least an additional 1/7th until payment of the full contribution is made in the seventh fiscal year and thereafter.

The valuation reflects the final State contribution under Chapter 1, P.L. 2010 for fiscal year 2012, which allowed the State Treasurer to reduce the State normal and accrued liability contributions for fiscal year 2012 of $874,346,428 to $124,906,000. This amount excludes the Workers Compensation Judges Part contribution of $756,573 which is payable by fund transfer from the Second Injury Fund and the Non-Contributory Group Insurance Premium of $29,790,898. Accordingly, a fiscal year 2012

New Jersey Division of Pensions and Benefits 203 employer contribution of only $125,662,573 ($124,906,000 plus the Workers Compensation Judges Part transfer of $756,573) was recognized for purposes of this valuation.

In addition, the fiscal year 2013 recommended State pension contribution of $924,432,941 has been reduced to $264,123,697 and has been recognized as a receivable contribution for purposes of this valuation. This amount excludes the Worker Compensation Judges Part contribution of $685,799, which is payable by fund transfer from the Second Injury Fund and the estimated Non-Contributory Group Insurance Premium of $34,202,000. Accordingly, a fiscal year 2013 employer contribution of $264,809,496 ($264,123,697 plus the Workers Compensation Judges Part transfer of $685,799) was recognized as a receivable contribution for purposes of this valuation. This amount may be subject to change per the requirements of the State’s fiscal year 2013 spending plan.

A State contribution of $1,050,074,677 is recommended for the fiscal year beginning July 1, 2013. This amount is comprised of an unfunded accrued liability payment of $851,910,247 plus a normal contribution of $198,164,430. However, the provisions of Chapter 1, P.L. 2010 allow the State Treasurer to reduce the recommended pension contribution for fiscal year 2014 to no less than 3/7th of the recommended pension contribution. Accordingly, the Chapter 1, P.L.2010 minimum required pension contribution is $450,032,004. This is comprised of an unfunded accrued liability payment of $365,104,392 and a normal contribution of $84,927,612. This amount excludes the Worker Compensation Judges Part contribution of $674,009, which is payable by fund transfer from the Second Injury Fund and the estimated Non-Contributory Group Insurance Premium of $33,431,000. This amount may be subject to change per the requirements of the State’s fiscal year 2014 spending plan.

The valuation again reflects the provisions of Chapter 42, P.L.2002, which allowed Local employers to issue refunding bonds to retire the unfunded accrued liability due to certain early retirement incentive programs.

The valuation reflects Chapter 19, P.L. 2009, which allowed the State Treasurer to reduce Local employers’ normal and accrued liability contributions to 50% of the amount certified for the State fiscal year 2009. In addition, certain Local employers who were eligible under Chapter 19, P.L.2009 to defer 50% of their State fiscal year 2009 pension contribution but did not were permitted to defer 50% of their State fiscal year 2010 recommended pension contribution. This unfunded liability will be paid by the Local employers in level annual payments over a period of 15 years with the first payment due in the fiscal year ending June 30, 2012. The unfunded liability will be adjusted by the rate of return on the actuarial value of assets. The legislation also provides that a Local employer may pay 100% of the recommended contributions for State fiscal years 2009 and 2010. Such an employer will be credited with the full payments and any such amounts will not be included in their unfunded liability.

The underlying demographic data is maintained and provided by the New Jersey Division of Pensions and Benefits. The data is analyzed by Buck Consultants, for internal completeness and consistency and compared with the prior valuation data to again ensure consistency.

As required under Chapter 84, P.L.1954, an actuarial investigation of the demographic experience of the members and beneficiaries of PERS is made once in every three-year period. The contributions for the fiscal year beginning July 1, 2013 were based on the actuarial assumptions that were determined from the July 1, 2008 to June 30, 2011 Experience Study and approved by the Board of Trustees at the September 19, 2012 Board meeting. The Treasurer has recommended a change in the economic assumptions used for the valuation. The rate of investment return has been revised from 7.95% per annum to 7.90% per annum. The assumed future salary increases have been reduced (the select period has been extended for five years and the ultimate rate has been decreased by 0.25%). These assumptions will remain in effect for valuation purposes until such time the Board or Treasurer recommends revised assumptions.

The valuation cost method used is the projected unit credit method. This method essentially funds the System’s benefits accrued to the valuation date. Experience gains and losses are recognized in future accrued liability contributions. The asset valuation method used was a five-year average of market values with write-up. This method takes into account appreciation (depreciation) in investments in

204 New Jersey Division of Pensions and Benefits order to smooth asset values by averaging the excess of the actual over the expected income, on a market value basis, over a five-year period.

The valuation does not take into account any changes in U.S. equity prices and bond yields that have occurred after the valuation date. Taking these into account may significantly change the market and actuarial value of assets shown. The effect of these events on any funded ratios shown, and on Retirement System calculations, is not known. Retirement System funding and financial accounting rules generally prohibit reflection of changes in assets and underlying economic conditions that occur after the valuation date.

The assumptions used to prepare the information required by Statements No. 25, No. 27 and No. 50 of the Governmental Accounting Standards Board (GASB) were the same as those used for funding purposes.

In our opinion, the attached schedules of valuation results fairly represent the status of the PERS and present an accurate view of historical data. The underlying assumptions and methods used for both funding and GASB disclosure purposes are consistent with the statutory specifications and represent a best estimate of the aggregate future experience of the System.

The following supporting schedules in the Actuarial Section were prepared by Buck Consultants:

• Summary of Actuarial Assumptions and Methods

• Schedule of Retired Members and Beneficiaries Added To and Removed From Rolls

• Schedule of Active Member Valuation Data

• Solvency Test

• Analysis of Past Financial Experience Reconciliation of Employer Contribution Rates

• Brief Summary of the Benefit and Contribution Provisions as Interpreted for Valuation Purposes

In addition, Buck Consultants prepared the “Schedule of Funding Progress” and the “Schedule of Employer Contributions” in the Financial Section.

To the best of our knowledge, this information is complete and accurate.The valuation was performed by, and under the supervision of, independent qualified actuaries who are members of the American Academy of Actuaries with experience in performing valuations for public retirement systems.

The valuation was prepared in accordance with the principles of practice prescribed by the Actuarial Standards Board and generally accepted actuarial procedures and methods. The calculations are based on the current provisions of the Retirement System, and on actuarial assumptions that are individually and in the aggregate internally consistent and reasonable based on the actual experience of the Retirement System.

Respectfully submitted,

Buck Consultants

Janet H. Cranna, M.A.A.A., F.S.A., E.A., F.C.A., M.S.P.P.A. Principal, Consulting Actuary

New Jersey Division of Pensions and Benefits 205 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS PUBLIC EMPLOYEES’ RETIREMENT SYSTEM

SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS

Chapter 84, P.L. 1954 provides that once in every three-year period the actuary shall examine in detail the demographic experience of the members and beneficiaries of the PERS to assure that the tables used for determining expected liabilities are consistent with recent experience. The demographic assumptions used for the July 1, 2012 actuarial valuation of the PERS were based on the results of the experience study, which covered the period from July 1, 2008 to June 30, 2011, which were approved by the Board of Trustees, and the revised economic assumptions, which were recommended by the Treasurer. An outline of the actuarial assumptions and methods used for the July 1, 2012 valuation is as follows: Valuation Interest Rate: 7.90% per annum, compounded annually. Employee Contribution Interest Rate: 7.90% per annum. COLA: No future COLA is assumed. Separations From Service and Salary Increases: Representative values of the assumed annual rates of separation and annual rates of salary increases are as follows:

Annual Rates of Select Withdrawal Ultimate Withdrawal* Prior to Eligibility After Eligibility 1st Year 2nd Year 3rd Year for Benefit for Benefit Age State Local State Local State Local State Local State Local 25 28.90% 32.15% 13.53% 15.12% 9.52% 12.19% 4.69% 6.31% — — 30 28.90 31.07 13.53 14.67 9.52 11.10 3.82 6.11 — 0.03% 35 20.91 26.81 10.83 11.74 7.99 8.28 2.86 3.80 0.05% 0.04 40 17.32 25.64 8.86 10.52 6.37 7.62 1.80 2.77 0.05 0.06 45 16.33 24.81 8.26 10.08 5.79 7.14 1.22 2.46 0.24 0.19 50 16.33 22.71 7.65 9.58 5.21 6.60 0.90 1.85 1.10 0.75 55 16.33 22.37 7.65 9.40 5.21 6.26 0.88 1.52 1.50 0.90

*The rates of withdrawal prior to eligibility for a benefit assumes a refund of contributions. The rates assumed for members withdrawing with a benefit is the sum of the rates of withdrawal after eligibility and those prior to eligibility.

206 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS PUBLIC EMPLOYEES’ RETIREMENT SYSTEM

SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS, Continued

Annual Rates of Accidental Ordinary Death** Accidental Death Ordinary Disability Disability State Local Age Male Female Male Female State Local State Local State Local 25 0.04% 0.02% 0.04% 0.02% 0.001% 0.001% 0.01% — 0.001% 0.002% 30 0.04 0.02 0.04 0.02 0.001 0.001 0.10 0.07% 0.003 0.004 35 0.06 0.03 0.06 0.02 0.001 0.001 0.24 0.22 0.009 0.004 40 0.09 0.05 0.10 0.04 0.001 0.001 0.34 0.30 0.017 0.009 45 0.12 0.07 0.13 0.06 0.001 0.001 0.51 0.36 0.019 0.013 50 0.17 0.11 0.19 0.09 0.001 0.001 0.58 0.51 0.029 0.016 55 0.25 0.17 0.26 0.14 0.001 0.001 0.70 0.69 0.039 0.022 60 0.36 0.25 0.40 0.21 0.001 0.001 1.23 0.89 0.041 0.025 65 0.59 0.39 0.65 0.33 0.001 0.001 1.49 1.10 0.061 0.027 69 0.81 0.54 0.86 0.47 0.001 0.001 1.77 1.31 0.062 0.029

** RP-2000 Employee Preretirement Mortality Table for male and female active participants. For State, mortality tables are set back 3 years for males and 5 years for females. For Employees of Local employers, mortality tables are set back 2 years for males and 7 years for females. In addition, the tables provide for future improvements in mortality from the base year of 2012 using a generational approach based on Projection Scale AA. Rates shown above are unadjusted for Projection Scale AA.

Annual Rates of Service Salary Retirement Increases FY2012 to FY2022 and Age State Local FY2021 thereafter 25 4.40% 5.40% 30 4.15 5.15 35 3.90 4.90 40 3.65 4.65 45 3.40 4.40 50 3.15 4.15 55 17.50% 11.70% 2.90 3.90 60 9.00 7.80 2.65 3.65 65 18.00 16.54 2.15 3.15 69 15.00 11.55 2.15 3.15

New Jersey Division of Pensions and Benefits 207 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS PUBLIC EMPLOYEES’ RETIREMENT SYSTEM

SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS, Continued

Prosecutors Part (Chapter 366, P.L.2001): This legislation introduced special retirement eligibility for certain benefits. The valuation used the following annual rates of service retirement:

Annual Rate of Retirement Less Than 20 Years 25 or More Years Age State Local 20 Years 21 to 24 Years State Local 40 0.00% 0.00% 2.50% 0.00% 23.10% 15.40% 45 0.00 0.00 2.50 0.00 23.10 15.40 50 0.00 0.00 3.75 0.00 23.10 15.40 55 2.59 3.06 5.00 0.00 26.22 17.48 60 2.63 3.06 5.00 0.00 34.17 22.78 65 2.63 3.06 37.50 0.00 100.00 100.00 69 2.63 3.06 37.50 0.00 100.00 100.00

Deaths After Retirement: The RP-2000 Combined Healthy Male and Female Mortality Tables (set back 1 year for males and females) for service retirement and beneficiaries of former members. The RP-2000 Disabled Mortality Tables (set back 3 years for males and set back 1 year for females) are used to value disabled retirees. In addition, the tables for service retirement and beneficiaries of former members provide for future improvements in mortality from the base year of 2012 using a generational approach based on Projection Scale AA. Illustrative rates of mortality unadjusted for Projection Scale AA are shown below:

Service Retirements Disability Retirements Age Men Women Age Men Women 55 0.32% 0.24% 35 2.26% 0.75% 60 0.60 0.44 40 2.26 0.75 65 1.13 0.86 45 2.26 0.75 70 1.98 1.49 50 2.51 1.06 75 3.39 2.55 55 3.16 1.55 80 5.79 4.15 60 3.80 2.08 85 9.98 6.95 65 4.50 2.66

Marriage: Husbands are assumed to be 3 years older than wives. Among the active population, 100% of participants are assumed to be married.

Valuation Method: Projected Unit Credit Method. This method essentially funds the System’s benefits accrued to the valuation date. Experience gains or losses are recognized in future accrued liability contributions. In accordance with Chapter 78, P.L.2011, beginning with the July 1, 2010 actuarial valuation, the accrued liability contribution shall be computed so that if the contribution is paid annually in level dollars, it will amortize the unfunded accrued liability over an open 30 year period. Beginning with the July 1, 2019 actuarial valuation, the accrued liability contribution shall be computed so that if the contribution is paid annually in level dollars it will amortize the unfunded accrued liability over a closed 30 year period (i.e., for each subsequent actuarial valuation, the amortization period shall decrease by one year). Beginning with the July 1, 2029 actuarial valuation when the remaining amortization period reaches 20 years, any increase or decrease in the unfunded accrued liability as a result of actuarial losses or gains for subsequent valuation years shall serve to increase or decrease, respectively, the amortization period for the unfunded accrued liability, unless an increase in the amortization period will cause it to exceed 20 years.

208 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS PUBLIC EMPLOYEES’ RETIREMENT SYSTEM

SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS, Continued

If an increase in the amortization period as a result of actuarial losses for a valuation year would exceed 20 years, the accrued liability contribution shall be computed for the valuation year using a 20 year amortization period.

Chapter 78, P.L. 2011 increases the member contribution rate from 5.5% to 6.5% of compensation with the increase effective October 2011. Further, beginning July 2012, the member contribution rate will increase by 1/7th of 1% each year until a 7.5% member contribution rate is reached in July 2018. Based on discussions with the Division of Pensions and Benefits, member contributions in excess of 5.5% of compensation shall not reduce the employers’ normal cost contributions.

Expenses: Payable from excess investment return.

Asset Valuation Method: A five year average of market values with write-up was used. This method takes into account appreciation (depreciation) in investments in order to smooth asset values by averaging the excess of the actual over the expected income, on a market value basis, over a five-year period.

New Jersey Division of Pensions and Benefits 209 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS PUBLIC EMPLOYEES’ RETIREMENT SYSTEM

SCHEDULE OF RETIRED MEMBERS AND BENEFICIARIES ADDED TO AND REMOVED FROM ROLLS

STATE

Added to Rolls Removed From Rolls Rolls at End of Year % Increase Average Valuation Annual Annual * Annual** in Annual Annual Date Number Allowance Number Allowance Number Allowance Allowance Allowance 7/1/12 3,192 $92,356,665 1,734 $29,433,960 49,048 $1,197,305,307 5.66% $24,411 7/1/11 4,365 135,383,063 1,782 28,241,754 47,590 1,133,192,150 11.40 23,812 7/1/10 2,628 74,214,851 1,456 22,991,138 45,007 1,017,211,463 5.32 22,601 7/1/09 3,691 114,125,640 1,587 23,763,321 43,835 965,850,034 13.38 22,034 7/1/08 2,376 59,667,932 1,282 18,580,725 41,731 851,858,427 6.45 20,413 7/1/07 3,099 75,984,568 1,586 20,983,838 40,637 800,218,401 9.98 19,692

LOCAL EMPLOYERS

Added to Rolls Removed From Rolls Rolls at End of Year % Increase Average Valuation Annual Annual * Annual** in Annual Annual Date Number Allowance Number Allowance Number Allowance Allowance Allowance 7/1/12 7,334 $137,596,316 4,284 $49,626,477 103,545 $1,631,782,901 5.83% $15,759 7/1/11 9,296 195,153,024 4,529 48,064,677 100,495 1,541,951,837 11.54 15,344 7/1/10 6,182 115,153,073 3,805 42,585,361 95,728 1,382,400,685 5.56 14,441 7/1/09 5,826 101,661,331 3,761 39,550,280 93,351 1,309,554,538 7.86 14,028 7/1/08 6,077 101,843,543 3,247 33,727,154 91,286 1,214,076,086 7.35 13,300 7/1/07 6,583 105,522,066 3,779 36,462,528 88,456 1,130,911,550 9.04 12,785

TOTAL SYSTEM

Added to Rolls Removed From Rolls Rolls at End of Year % Increase Average Valuation Annual Annual * Annual** in Annual Annual Date Number Allowance Number Allowance Number Allowance Allowance Allowance 7/1/12 10,526 $229,952,981 6,018 $79,060,437 152,593 $2,829,088,208 5.75% $18,540 7/1/11 13,661 330,536,087 6,311 76,306,431 148,085 2,675,143,987 11.48 18,065 7/1/10 8,810 189,367,924 5,261 65,576,499 140,735 2,399,612,148 5.46 17,051 7/1/09 9,517 215,786,971 5,348 63,313,601 137,186 2,275,404,572 10.14 16,586 7/1/08 8,453 161,511,475 4,529 52,307,879 133,017 2,065,934,513 6.98 15,531 7/1/07 9,682 181,506,634 5,365 57,446,366 129,093 1,931,129,951 9.43 14,959

* These values include beneficiaries in receipt but exclude deferred vested terminations. ** The benefit amounts shown are the annualized benefits as of the valuation date and are not the actual benefits paid during the fiscal year.

210 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS PUBLIC EMPLOYEES’ RETIREMENT SYSTEM

SCHEDULE OF ACTIVE MEMBER VALUATION DATA

STATE

Number of % Increase Valuation Active Annual Average in Average Date Contributing Compensation Compensation Compensation Members 7/1/12 75,355 $4,570,958,470 $60,659 1.48% 7/1/11 77,109 4,608,926,826 59,772 6.44 7/1/10 81,288 4,564,850,886 56,157 0.86 7/1/09 83,102 4,627,092,235 55,680 2.91 7/1/08 85,182 4,609,019,779 54,108 4.17 7/1/07 85,382 4,434,933,181 51,942 5.59

LOCAL EMPLOYERS Number of % Increase Valuation Active Annual Average in Average Date Contributing Compensation Compensation Compensation Members 7/1/12 164,005 $6,862,133,165 $41,841 2.74% 7/1/11 171,881 7,000,115,900 40,727 2.98 7/1/10 187,526 7,416,503,897 39,549 3.37 7/1/09 192,582 7,368,354,906 38,261 2.23 7/1/08 192,566 7,206,781,046 37,425 3.33 7/1/07 192,819 6,983,534,635 36,218 3.36

TOTAL SYSTEM Number of % Increase Valuation Active Annual Average in Average Date Contributing Compensation Compensation Compensation Members 7/1/12 239,360 $11,433,091,635 $47,765 2.45% 7/1/11 248,990 11,609,042,726 46,625 4.61 7/1/10 268,814 11,981,354,783 44,571 2.43 7/1/09 275,684 11,995,447,141 43,512 2.28 7/1/08 277,748 11,815,800,825 42,541 3.65 7/1/07 278,201 11,418,467,816 41,044 4.08

New Jersey Division of Pensions and Benefits 211 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS PUBLIC EMPLOYEES’ RETIREMENT SYSTEM

SOLVENCY TEST

STATE Percentage of Accrued Liabilities Covered by Accrued Liabilities for Net Assets Available

(1) Aggregate (2) (3) Net Assets Valuation Member Current Retirees Active & Inactive Available for Date Contributions & Beneficiaries Members Benefits* (1) (2) (3) 7/1/12 $4,562,712,648 $10,849,987,028 $3,970,884,963 $9,774,698,097 100.00% 48.04% 0.00% 7/1/11 4,295,868,689 10,055,639,293 3,939,321,039 10,062,648,618 100.00 57.35 0.00 7/1/10 4,218,496,038 8,891,761,902 4,318,920,081 10,253,254,901 100.00 67.87 0.00 7/1/09 3,917,520,867 9,576,933,235 5,452,740,477 10,713,340,747 100.00 70.96 0.00 7/1/08 3,772,347,015 8,123,305,516 5,177,050,149 11,252,321,606 100.00 92.08 0.00 7/1/07 3,460,228,558 7,660,455,350 4,908,191,693 11,228,946,178 100.00 100.00 2.21

LOCAL EMPLOYERS Percentage of Accrued Liabilities Covered by Accrued Liabilities for Net Assets Available (1) Aggregate (2) (3) Net Assets Valuation Member Current Retirees Active & Inactive Available for Date Contributions & Beneficiaries Members Benefits* (1) (2) (3) 7/1/12 $6,614,992,298 $14,150,003,241 $5,244,042,802 $19,376,646,934 100.00% 90.19% 0.00% 7/1/11 6,244,282,760 13,077,334,135 5,357,478,680 18,997,383,783 100.00 97.52 0.00 7/1/10 6,130,352,551 11,541,556,714 6,246,748,779 18,481,952,370 100.00 100.00 12.97 7/1/09 5,692,517,632 12,298,679,145 7,532,011,799 18,165,835,669 100.00 100.00 2.32 7/1/08 5,242,130,640 11,030,079,191 6,900,974,142 18,251,200,411 100.00 100.00 28.68 7/1/07 4,847,097,344 10,290,632,227 6,626,485,022 17,704,248,133 100.00 100.00 38.73

TOTAL SYSTEM

Percentage of Accrued Liabilities Covered by Net Assets Available Accrued Liabilities for

(1) Aggregate (2) (3) Net Assets Valuation Member Current Retirees Active & Inactive Available for Date Contributions & Beneficiaries Members Benefits* (1) (2) (3) 7/1/12 $11,177,704,946 $24,999,990,269 $9,214,927,765 $29,151,345,031 100.00% 71.89% 0.00% 7/1/11 10,540,151,449 23,132,973,428 9,296,799,719 29,060,032,401 100.00 80.06 0.00 7/1/10 10,348,848,589 20,433,318,616 10,565,668,860 28,735,207,271 100.00 89.98 0.00 7/1/09 9,610,038,499 21,875,612,380 12,984,752,276 28,879,176,416 100.00 88.09 0.00 7/1/08 9,014,477,655 19,153,384,707 12,078,024,291 29,503,522,017 100.00 100.00 11.06 7/1/07 8,307,325,902 17,951,087,577 11,534,676,715 28,933,194,311 100.00 100.00 23.19

* Actuarial Value including receivable amounts but excluding postretirement medical fund assets.

212 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS PUBLIC EMPLOYEES’ RETIREMENT SYSTEM ANALYSIS OF PAST FINANCIAL EXPERIENCE RECONCILIATION OF EMPLOYER CONTRIBUTION RATES

STATE July 1, July 1, July 1, July 1, July 1, July 1, Valuation Year 2012 2011 2010 2009 2008 2007 Prior Year Contribution Rate 20.06%ø 19.15%ø 16.28%ø 12.59%ø 11.42%ø 10.81%ø Net Change Due to: Current New Entrants 0.02 0.00 0.04 0.09 0.07 0.09 Excess Salary Increases (0.14) 0.24 (0.22) (0.05) 0.07 0.25 Assumption/Method Changes 0.80 (1.28) 0.00 1.40 0.00 0.00 COLA Increases and Phase-In 0.02 (0.13) (0.07) 0.17 0.01 0.12 Active Experience 0.07 0.27 0.15 0.02 0.02 0.05 Other Experience 0.19 (0.16) 0.23 0.14 0.08 0.09 Investment Loss/(Gain) 0.67 0.48 0.65 0.90 0.36 0.14 Chapter 133 Benefit Improvements** 0.00 0.00 0.00 0.00 0.00 0.00 Net Effect of Chapter 133* 0.00 0.00 0.00 0.00 0.00 0.00 Chapter 366 Benefit Improvement (0.01) 0.00 0.01 0.00 (0.01) 0.00 Net Effect of Chapter 366 0.01 0.01 0.03 0.00 0.00 0.02 Appropriation Actøø 1.28 1.48 1.03 0.78 0.60 0.35 Chapter 21, P.L. 2008 N/A N/A N/A 0.24 N/A N/A Chapter 103, P.L. 2007 N/A N/A N/A N/A (0.03) (0.50) Chapter 78, P.L. 2011 N/A N/A 1.02 N/A N/A N/A Actual Pension Contribution Rate: • Prior to reflecting Chapter 1, P.L. 2010 22.97%ø 20.06%ø 19.15%ø 16.30%ø 12.59%ø 11.42%ø • After reflecting Chapter 1, P.L. 2010 9.85%ø 5.73%ø 2.74%ø N/A N/A N/A

New Jersey Division of Pensions and Benefits 213 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS PUBLIC EMPLOYEES’ RETIREMENT SYSTEM ANALYSIS OF PAST FINANCIAL EXPERIENCE RECONCILIATION OF EMPLOYER CONTRIBUTION RATES

LOCAL EMPLOYERS July 1, July 1, July 1, July 1, July 1, July 1, Valuation Year 2012 2011 2010 2009 2008 2007 Prior Year Contribution Rate# 11.29%ø 11.32%ø 11.12%ø 8.67%ø 7.99%ø 7.94%ø Net Change Due to: Current New Entrants 0.02 0.03 0.08 0.16 0.11 0.11 Excess Salary Increases (0.02) (0.12) (0.08) (0.10) 0.05 0.07 Assumption/Method Changes 0.38 (0.93) 0.00 1.21 0.00 0.00 COLA Increases and Phase-In 0.02 (0.11) (0.05) 0.14 0.01 0.10 Active Experience 0.04 0.26 0.10 (0.05) (0.01) (0.03) Other Experience 0.13 0.21 (0.04) 0.07 0.11 0.02 Investment Loss/(Gain) 0.83 0.77 0.77 0.98 0.45 0.20 Chapter 133 Benefit Improvements** 0.00 (0.13) 0.00 0.03 (0.01) 0.00 Net Effect of Chapter 133* (0.68) (0.69) (0.81) (0.81) (0.78) (0.79) Chapter 366 Benefit Improvement (0.01) (0.01) 0.00 0.01 (0.01) 0.00 Net Effect of Chapter 366 (0.02) (0.02) (0.04) (0.04) (0.03) (0.04) Chapter 108, P.L. 2003 0.00 0.00 0.00 0.00 0.00 0.08 Chapter 103, P.L. 2007 0.00 0.00 0.00 0.00 (0.02) (0.50) Chapter 78, P.L. 2011 N/A N/A (0.58) N/A N/A N/A Actual Contribution Rate## 11.98%ø 10.58%ø 10.47%ø 10.27%ø 7.86%ø 7.16%ø

* The additional annual employer normal contribution for the increase in benefits is funded by assets accumulated in the Benefit Enhancement Fund. ** Includes the effect of additional cost due to Chapter 353, P.L. 2000. ø Excludes contribution rates payable to the Non-Contributing Group Insurance Premium Fund. For State, the contribution rates are 0.73% for 2012, 0.74% for 2011, 0.71% for 2010, 0.64% for 2009, 0.62% for 2008 and 0.76% for 2007. For Local, the contribution rates are 0.18% for 2012, 0.63% for 2011, 0.67% for 2010, 0.78% for 2009, 1.09% for 2008 and 0.89% for 2007. øø Net change due to Appropriation Act for July 1, 2010 includes 0.03% change due to the Fiscal Year 2010 Appropriation Act and 1.00% change due to the Fiscal Year 2011 Appropriation Act. Net change for July 1, 2011 is due to the provisions of Chapter 1, P.L. 2010. # to the reallocation of State paid Local obligations due to Chapter 133, P.L. 2001 and Chapter 366, P.L. 2001. ## After the reallocation of State paid Local obligations due to Chapter 133, P.L. 2001 and Chapter 366, P.L. 2001.

214 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS PUBLIC EMPLOYEES’ RETIREMENT SYSTEM

BRIEF SUMMARY OF THE BENEFIT AND CONTRIBUTION PROVISIONS AS INTERPRETED FOR VALUATION PURPOSES

1. DEFINITIONS each year of service for Class F and Class G mem- Final Compensation (FC): Average annual com- bers and Chapter 78, P.L. 2011 changed the eligi- pensation for the three years of creditable service bility age to age 65 for Class G members. immediately preceding retirement or the highest Ordinary Disability Retirement: Eligible after 10 three fiscal years of membership service. Effective years of service. Benefit equals a member annuity June 30, 1996, Chapter 113, P.L. 1997 provided plus an employer pension which, together, equal that the amount of compensation used for employ- 1.64% of FC for each year of service; minimum er and member contributions and benefits under benefit of 43.6% of FC. Class F and Class G mem- the program cannot exceed the compensation limi- bers are not eligible for an Ordinary Disability tation of Section 401(a)(17) of the Internal Revenue Retirement benefit in accordance with Chapter 3, Code. Chapter 103, P.L. 2007 provides that for P.L. 2010. Class D, Class E, Class F and Class G members, Accidental Disability: Eligible upon total and per- the amount of compensation used for employer and manent disability prior to age 65 as a result of a member contributions and benefits under the duty injury. Benefit equals a member annuity plus System cannot exceed the annual maximum wage an employer pension which, together, equal 72.7% contribution base for Social Security, pursuant to of contributory compensation at the date of injury. the Federal Insurance Contributions Act. Chapter Class F and Class G members are not eligible for 1, P.L. 2010 provides that for Class F and Class G an Accidental Disability Retirement benefit in members FC is the average annual compensation accordance with Chapter 3, P.L. 2010. for the five years of creditable service immediately preceding retirement or the highest five fiscal years Lump Sum Withdrawal: Eligible upon service ter- of membership service. mination prior to age 60 (age 62 for Class E and Accumulated Deductions: Sum of all required Class F members and age 65 for Class G mem- amounts deducted from the compensation of a bers) and prior to 10 years of service. Benefit member or contributed by him. equals refund of accumulated deductions plus, if the member has completed three years of service, Class B Member: Any member who was hired interest allowed thereon. prior to July 1, 2007. Vested Retirement: Eligible after 10 years of serv- Class D Member: Any member who was hired on ice. Benefit equals the lump sum benefit described or after July 1, 2007 but prior to November 2, 2008. above or a deferred retirement benefit, commenc- Class E Member: Any member who was hired ing at age 60 (age 62 for Class E and Class F after November 1, 2008 but prior to May 22, 2010. members and age 65 for Class G members), equal Class F Member: Any member who was hired on to the service retirement benefit based on service or after May 22, 2010 but prior to June 28, 2011. and FC at date of termination. Class G Member: Any member who was hired on Early Retirement: Eligible after 25 years of service or after June 28, 2011. (30 years of service for Class G members). Benefit equals the lump sum benefit described above or 2. BENEFITS* the vested benefit reduced by 1/4 percent for each Service Retirement: Eligible at age 60. Benefit month the retirement date precedes age 55. equals a member annuity plus an employer pen- Chapter 103, P.L. 2007 provides that for Class D sion, which together, equal 1/55th of FC for each members, the reduction shall be 1/12 percent for year of service. Chapter 89, P.L.2008 changed the each month (up to 60 months) the retirement date eligibility age to age 62 for Class E members, precedes age 60 plus 1/4 percent for each month Chapter 1, P.L. 2010 changed the eligibility age to the retirement date precedes age 55. Chapter 89, age 62 for Class F members and changed the P.L.2008 and Chapter 1, P.L.2010 provides that for basic accrual rate from 1/55th to 1/60th of FC for Class E and Class F members, the reduction shall

* Special benefits for veterans, law enforcement officers, legislators, prosecutors, and workers’ compensation judges are summarized at the end of this section.

New Jersey Division of Pensions and Benefits 215 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS PUBLIC EMPLOYEES’ RETIREMENT SYSTEM

BRIEF SUMMARY OF THE BENEFIT AND CONTRIBUTION PROVISIONS, Continued

be 1/12 percent for each month (up to 84 months) Special Benefits: the retirement date precedes age 62 plus 1/4 per- VETERANS cent for each month the retirement date precedes age 55. Chapter 78, P.L. 2011 provides that for Service Retirement: Class G members, the reduction shall be 1/4 per- Eligible if member on January 2, 1955, attains age cent for each month the retirement date precedes 60, completes 20 years of service. Benefit equals age 65. 54.5% of final contributory compensation (veteran members after January 2, 1955 must attain age 55 Ordinary Death (Insured): with 25 years of service or age 60 with 20 years of BEFORE RETIREMENT service. Eligible if active. Benefit equals accumulated deduc- Chapter 220 Benefit: tions with interest plus an amount equal to 1-1/2 Eligible if age 55 and completes 35 years of serv- times contributory compensation at date of death. ice. Benefit equals 1/55th of the compensation for AFTER RETIREMENT the 12-month period of membership that provides the largest possible benefit multiplied by the mem- Before Age 60: ber’s total years of service. Eligible if disabled or vested terminated. Benefit equals 1 1/2 times last contributory compensation LAW ENFORCEMENT if disabled, accumulated deductions only if vested Service Retirement: terminated. Eligible at age 55 after 20 years of service. Benefit After Age 60 or Early Retirement: equals a member annuity plus an employer pen- Eligible after early retirement or after attainment of sion which, together, equal 2% of final contributory age 60 for other types of retirement (if not disabled, compensation for each of the first 25 years of serv- 10 years of service credit required on members ice plus 1% of such compensation for non-contrib- enrolling after July 1, 1971). Benefit equals 3/16 of utory service or service over 25 years plus 1-2/3% last contributory compensation. for non-law enforcement service. Voluntary Death Benefit: An additional, employ- Chapter 4, P.L. 2001 Special Retirement: ee-paid, death benefit is also available through the After completion of 25 years of service, an addi- purchase of group insurance with an outside carri- tional retirement benefit equal to 5% of final con- er. tributory pay is added to the above service related retirement benefit. There is a maximum total ben- Accidental Death: Eligible upon death resulting dur- efit of 70% of final contributory pay. ing performance of duty. Benefit varies as follows: Ordinary Disability: Widow(er) - 50% of contributory compensation paid Eligible after 5 years of service. Benefit is the same as pension. as for regular members. Child(ren) - No spouse - 20% (1 child), 35% (2 chil- Death After Retirement: dren), 50% (3 or more children) of contributory Eligible upon death after an accidental disability compensation pension paid as pension to age 18 retirement. Benefit is the same as for a regular or life if disabled. member with a $5,000 minimum. Surviving dependent parent - No spouse or child - LEGISLATORS 25% (1 parent) or 40% (2 parents) of contributory compensation paid as pension. Service Retirement: Eligible at age 60 and termination of all public serv- No relation above - Accumulated deductions paid ice. Benefit is equal to a member annuity plus an to other beneficiary or estate. employer pension which, together, equal 3% of final In addition, the employer-paid lump sum ordinary contributory compensation for each year of service to death benefit is paid. a maximum of 2/3 of final compensation. Optional Benefits: Various forms of payment of Vested Retirement: equivalent actuarial value are available to retirees. Eligible after 8 years of legislative service. Benefit

216 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS PUBLIC EMPLOYEES’ RETIREMENT SYSTEM

BRIEF SUMMARY OF THE BENEFIT AND CONTRIBUTION PROVISIONS, Continued

is a service retirement benefit deferred to age 60 is equal to 1-1/2 times compensation. or, alternatively, a lump sum equal to his accumu- (ii) For death while a Deferred Retiree the benefit lated deductions. is equal to his Accumulated Deductions. PROSECUTORS PART (Chapter 366, P.L. 2001) (iii) For death while a Retiree who has completed Service Retirement: 20 years of service, the benefit is equal to 1/2 Eligibility means age 55 or 20 years of credited times final contributory compensation. service. Mandatory retirement at age 70. Benefit After retirement and after age 55, the benefit is an annual retirement allowance equal to a mem- payable is equal to ½ times final contributory com- ber annuity plus an employer pension, which pensation. together equals the greater of: Chapter 1, P.L.2010 closes the Prosecutors Part of (i) 1/60th of FC for each year service; or the System to new members enrolled on or after (ii) 2% of FC multiplied by years of service up to May 22, 2010. 30 plus 1% of FC multiplied by years of service WORKERS’ COMPENSATION JUDGES PART over 30; or (Chapter 259, P.L. 2001) (iii) 50% of final contributory compensation if the Service Retirement: member has 20 or more years of service. A. Mandatory retirement at age 70. Voluntary Chapter 366 also requires that, in addition to to retirement prior to age 70 as follows: the 50% of final contributory compensation a. Age 70 and 10 years of service as a judge of benefit, any member as of January 7, 2002 compensation; who will have 20 or more years of service and is required to retire upon attaining age 70, shall b. Age 65 and 15 years of service as a judge of receive an additional benefit equal to 3% of compensation; or final contributory compensation for each year of c. Age 60 and 20 years of service as a judge of service over 20 years but not over 25 years. compensation. Special Retirement: Benefit is an annual retirement allowance After completion of 25 years of service. The annu- equal to the greater of 75% of final salary or al retirement benefit is equal to a member annuity the regular service retirement benefit above. plus an employer pension which together equal B. Age 65 while serving as a judge of compensa- 65% of final contributory compensation plus 1% of tion, 5 consecutive years of service as a judge final contributory compensation for each year of of compensation and 15 years in the aggregate service over 25. There is a maximum benefit of of public service; or 70% of final contributory compensation. Age 60 while serving as a judge of compensa- Vested Termination: tion, 5 consecutive years of service as a judge Eligible upon termination of service prior to age 55 of compensation and 20 years in the aggregate and after 10 years of Service (but less than 20 of public service. years). The benefit is a deferred retirement benefit, Benefit is an annual allowance equal to the commencing at age 55, equal to a member annuity greater of 50% of final salary or the regular plus an employer pension which together provide a service retirement benefit above. retirement allowance equal to 2% of final contributory compensation multiplied of service up to 30 C. Age 60 while serving as a judge of compensa- plus 1% of final contributory compensation multi- tion, 5 consecutive years as a judge of com- plied by years of service. pensation and 15 years in the aggregate of public service. Benefit is an annual retirement Death Benefits: allowance equal to the greater of 2% of final Ordinary Death Benefit — Lump Sum salary for each year of public service up to 25 After retirement but prior to age 55, the benefit is as years plus 1% of final salary for each year in follows: excess of 25 years or the regular service retire- (i) For death while a Disabled Retiree the benefit ment benefit above.

New Jersey Division of Pensions and Benefits 217 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS PUBLIC EMPLOYEES’ RETIREMENT SYSTEM

BRIEF SUMMARY OF THE BENEFIT AND CONTRIBUTION PROVISIONS, Continued

D. Age 60 while serving as a judge of compensa- final salary if death occurred before the member tion. Benefit is an annual retirement allowance attained age 60 and 1/4 times final salary if equal to the greater of 2% of final salary for death occurred after age 60. each year of service as a judge of compensa- Chapter 92, P.L. 2007 closes the Workers tion up to 25 years plus 1% for each year in Compensation Judges Part of the System to new excess of 25 years or the regular service retire- members enrolled after June 8, 2007. ment benefit above. 3. CONTRIBUTIONS Early Retirement: Prior to age 60 while serving as a judge of By Members: compensation, 5 consecutive years of service Members enrolling in the retirement system on or as a judge of compensation and 25 or more after July 1, 1994 will contribute 5% of compensa- years in the aggregate of public service. Benefit tion. Members enrolled prior to July 1, 1994 will is an annual retirement allowance equal to 2% contribute 5% of compensation to the retirement of final salary for each year of public service up system effective July 1, 1995 unless they previous- to 25 years plus 1% of final salary for each year ly had contributed less than 6% in which case they of public service in excess of 25 years, actuar- will contribute 4% of compensation beginning July ially reduced for commencement prior to age 1, 1995 and 5% of compensation beginning July 1, 60. 1996. Chapter 103, P.L.2007 increases the contri- Vested Termination: bution rate to 5.5% of compensation effective, gen- Termination of service prior to age 60, with 5 erally, July 1, 2007 for State employees and July 1, consecutive years of service as a judge of 2008 for Local employees. Chapter 78, P.L. 2011 compensation and 10 years in the aggregate of increases the contribution rate from 5.5% to 6.5% public service. Benefit is a refund of accumulat- of compensation with the increase effective ed deductions, or a deferred life annuity begin- October 2011. Further, beginning July 2012, the ning at age 60 equal to 2% of final salary for member contribution rate will increase by 1/7th of each year of public service up to 25 years, plus 1% each July until a 7.5% member contribution rate 1% of service in excess of 25 years. is reached in July 2018. Death Benefits (Insured): A 7.50% member contribution rate for members who are eligible to retire under the Prosecutors Part Before Retirement: of the Retirement System as provided by Chapter Death of an active member of the plan. Benefit 366, P.L. 2001 was used prior to July 1, 2008. is equal to Effective July 1, 2008 the member contribution rate a. Lump sum payment equal to 1-1/2 times final was increased to 8.50%. Chapter 78, P.L. 2011 salary, plus increases the contribution rate from 8.5% to 10.0% b. Spousal life annuity of 25% of final salary plus of compensation with the increase effective 10% (15%) to one (two or more) surviving chil- October 2011. dren payable until spouse’s death or remarriage. By Employers: If there is no surviving spouse, or upon death or NORMAL CONTRIBUTION remarriage, a total of 15% (20%, 30%) of final salary payable to one (two, three or more) The State and Local employers pay annually a nor- dependent child (children). If there is no surviving mal contribution to the retirement System. This spouse (or dependent children), 20% or 30% of contribution is determined each year on the basis final salary to one or two dependent parents. of the annual valuation and represents the value of the benefits to be earned in the year following the After Retirement: valuation date. The normal contributions for active Death of a retired member of the plan. Benefit is members’ COLA are being phased in. Chapter 78, equal to a lump sum of 25% of final salary for a P.L. 2011 suspended future COLAs for current and member retired under normal, early retirement future retirees and beneficiaries until reactivated as or vested termination. If a member were receiv- permitted by law. ing a disability benefit, a lump sum 1-1/2 times

218 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS PUBLIC EMPLOYEES’ RETIREMENT SYSTEM

BRIEF SUMMARY OF THE BENEFIT AND CONTRIBUTION PROVISIONS, Continued

In accordance with the provisions of Chapter 79, P.L. accrued liability. Thereafter, actuarial gains or 1960, the monies appropriated for payment of the losses will increase or decrease the amortization non-contributory life insurance coverage shall be held period unless an increase will cause it to exceed separate from the retirement System monies. 30 years. Chapter 78, P.L. 2011 suspended future In accordance with the provisions of Chapter 133, COLAs for current and future retirees and benefici- P.L. 2001, the Benefit Enhancement Fund (BEF) aries until reactivated as permitted by law and was established to fund the additional annual employer normal contribution due to the law’s changed the methodology used to amortize the increased benefits. (Chapter 353, P.L. 2001 unfunded accrued liability. Beginning with the July extended this coverage to this law’s additional 1, 2010 actuarial valuation, the accrued liability annual employer normal contribution.) If the contribution shall be computed so that if the contri- assets in the BEF are insufficient to cover the nor- bution is paid annually in level dollars, it will amor- mal contribution for the increased benefits for a tize the unfunded accrued liability over an open 30 valuation period, the State will pay such amount for both the State and local employers. year period. Beginning with the July 1, 2019 actuarial valuation, the accrued liability contribution In accordance with the provisions of Chapter 259, P.L. 2001, the additional normal contributions for shall be computed so that if the contribution is paid increased benefits to judges of compensation for a annually in level dollars it will amortize the unfund- valuation period will be funded by transfers from the ed accrued liability over a closed 30 year period Second Injury Fund. (i.e., for each subsequent actuarial valuation, the Chapter 19, P.L. 2009 provides that the State amortization period shall decrease by one year). Treasurer will reduce for Local employers the nor- Beginning with the July 1, 2029 actuarial valuation mal contribution to 50% of the amount certified for when the remaining amortization period reaches fiscal year 2009. This unfunded liability will be paid by the Local employers in level annual payments 20 years, any increase or decrease in the unfund- over a period of 15 years with the first payment due ed accrued liability as a result of actuarial losses or in the fiscal year ending June 30, 2012. The gains for subsequent valuation years shall serve to unfunded liability will be adjusted by the rate of increase or decrease, respectively, the amortiza- return on the actuarial value of assets. The legislation period for the unfunded accrued liability, unless tion also provides that a Local employer may pay an increase in the amortization period will cause it 100% of the recommended contribution for fiscal year 2009. Local employers who were eligible but to exceed 20 years. If an increase in the amortiza- did not elect to take advantage of Chapter 19, P.L. tion period as a result of actuarial losses for a val- 2009 were permitted to elect to defer 50% of the uation year would exceed 20 years, the accrued 2010 fiscal year required contribution with the first liability contribution shall be computed for the valu- payment due in the fiscal year ending June 30, ation year using a 20 year amortization period. 2012. Chapter 366, P.L. 2001 requires the State be liable ACCRUED LIABILITY CONTRIBUTIONS for any increase in pension costs to a county that The State and Local employers pay contributions results from the enrollment of prosecutors in the to cover any unfunded accrued liability. An Prosecutors Part. Any increase in the unfunded unfunded accrued liability was established for accrued liability in the Retirement System arising active life COLAs. The amortization periods for from the benefits established for the Prosecutors funding these liabilities were set initially at 40 Part are to be amortized over a period of 30 years years. Experience gains or losses for the 10 val- in the manner provided for other such liability in the uation years following the March 31, 1992 valua- Retirement System. tion will increase or decrease the unfunded In accordance with the provisions of Chapter 259,

New Jersey Division of Pensions and Benefits 219 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS PUBLIC EMPLOYEES’ RETIREMENT SYSTEM

BRIEF SUMMARY OF THE BENEFIT AND CONTRIBUTION PROVISIONS, Continued

P.L. 2001, the additional accrued liability contribution for increased benefits to judges of compensation for a valuation period will be funded by transfers from the Second Injury Fund. Chapter 19, P.L. 2009 provides that the State Treasurer will reduce for Local employers the accrued liability contribution to 50% of the amount certified for fiscal year 2009. This unfunded liability will be paid by the Local employers in level annual payments over a period of 15 years with the first payment due in the fiscal year ending June 30, 2012. The unfunded liability will be adjusted by the rate of return on the actuarial value of assets. The legislation also provides that a Local employer may pay 100% of the recommended contribution for fiscal year 2009. Local employers who were eligible but did not elect to defer 50% of the 2009 fiscal year contribution were permitted to elect to defer 50% of the 2010 fiscal year contribution with the first payment due in the fiscal year ending June 30, 2012.

220 New Jersey Division of Pensions and Benefits 1550 Liberty Ridge Drive Suite 200 Wayne, PA 19087-5572 Tel +1 610 687.5644 Fax +1 610.687.4236 www.milliman.com

October 8, 2013 Board of Trustees Teachers' Pension and Annuity Fund of New Jersey

Re: Actuary’s Certification Letter

Members of the Board: This letter constitutes the actuary’s certification letter for the Comprehensive Annual Financial Report (CAFR) of the Teachers’Pension and Annuity Fund of New Jersey (TPAF) for the fiscal year ending June 30, 2013. It reflects the results of the June 30, 2012 Annual Actuarial Valuation (dated February 15, 2013) of TPAF. Please refer to the entire Actuarial Valuation report for more information. The information provided is based on Governmental Accounting Standards Board (GASB) Statement No. 25. This information does not reflect new GASB Statement No. 67 effective for fiscal year 2014. This valuation reflects changes to two key actuarial assumptions: 1) a decrease in the investment return assumption from 7.95% per year to 7.9% per year, and 2) a change to the salary increase assumption to better reflect recent experience and expected longterm trends. The funding requirements of the plan, as modified by Chapter 1, P.L. 2010, and Chapter 78, P.L. 2011, is to have the State phase-in to paying 100% of the statutorily required contribution over a 7-year period beginning with fiscal year 2012. For the 2013 fiscal year, the phase-in percentage is 28.57% (2/7th). The full statutory contribution is equal to the normal cost of the plan plus a 30-year level dollar amortization of the unfunded pension accrued liability.The maximum amortization period will be reduced by one each year beginning with the 2021 fiscal year, but not less than 20 years (the 2030 fiscal year). The State portion of the normal cost only reflects employee contributions up to 5.5% of pay. The employee contribution rate increased to 6.5% effective October 1, 2012 and increases by 1/7 of 1% each July 1 thereafter. Since the 2004 fiscal year, the State has not met the full statutory contribution requirement. Actual contributions by the State for fiscal year 2013 also did not meet the full statutory contribution requirements. In accordance with Chapter 1, P.L. 2010, 100% of the statutorily required contribution is not expected to be contributed by the State until fiscal year 2018. The following describes the allocation of the State contributions appropriated for fiscal years 2013 and 2014. The State appropriated $647,874,536 for the 2013 fiscal year which represents 28.57% (2/7th) of the statutory pension and State ERI-3 contributions plus 100% of the actual non-contributory group life insurance claims. For fiscal year 2014, it is our understanding that the State will appropriate 42.86% (3/7th) of the statutory pension and State ERI-3 contributions plus an amount to cover 100% of the actual non-contributory group life insurance claims, which is estimated to total $1,022,086,910. Please note that ERI contributions are not included in the CAFR in accordance

New Jersey Division of Pensions and Benefits 221 with GASB accounting. Therefore, the resulting contributions are $647,059,335 (27.75% of the ARC) for fiscal year 2013 and $1,020,804,486 (41.51% of the ARC) for fiscal year 2014. The valuation was based on a set of demographic actuarial assumptions (described in detail in the section headed “Summary of Actuarial Assumptions and Methods”) which was adopted by the Board of Trustees as a result of a study of actual experience under the Teachers’ Pension Annuity Fund during the 3-year period ending June 30, 2009 with subsequent modifications to the salary increase assumption. The valuation is also based on a set of economic assumptions as prescribed by the State Treasurer, specifically an investment return assumption of 7.9%. Based on our most recent analysis, this assumption is outside our reasonable range. If the investment return was lowered, the actuarial accrued liability and statutory contributions would increase and the funded ratio would decrease. Determining results at an alternative investment return assumption is outside the scope of our assignment. The demographic actuarial assumptions and methods used for funding purposes meet the param- eters set forth in GASB Statement No. 25 except with respect to the funding of the contributory and non-contributory group life benefits. The Annual Required Contribution shown on the attached exhibit reflects an actuarial determination of the contributory and non-contributory group life benefits. The following supporting schedules in the Actuarial Section were prepared by Milliman: • Summary of Actuarial Assumptions and Methods • Summary of Retired Member Valuation Data (including schedule of retirants and beneficiaries added to and removed from rolls) • Schedule of Active Member Valuation Data • Solvency Test • Analysis of Financial Experience • Summary of Principal Plan Provisions In addition, Milliman prepared the “Schedule of Funding Progress”, the “Schedule of Employer Contributions”, and the “Reconciliation of Net Pension Obligation” in the Financial Section. Milliman’s work is prepared solely for the internal business use of the State of New Jersey Division of Pension and Benefits. To the extent that Milliman's work is not subject to disclosure under applicable public records laws, Milliman’s work may not be provided to third parties without Milliman's prior written consent. Milliman does not intend to benefit or create a legal duty to any third party recipient of its work product. Milliman’s consent to release its work product to any third party may be conditioned on the third party signing a Release, subject to the following exception: • The System may provide a copy of Milliman’s work, in its entirety, to the System's professional service advisors who are subject to a duty of confidentiality and who agree to not use Milliman’s work for any purpose other than to benefit the System. This report has been prepared exclusively for the State of New Jersey Division of Pensions and Benefits for a specific and limited purpose. Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work. It is a complex, technical analysis that assumes a high level of knowledge concerning the State of New Jersey Division of Pensions and Benefits’ operations, and uses the State of New Jersey Division of Pensions and Benefits’ data, which Milliman has not audited. No third party recipient of Milliman's work product should rely upon Milliman's work product. Such recipients should engage qualified professionals for advice appropriate to their own specific needs. The consultants who worked on this assignment are pension actuaries. Milliman’s advice is not intended to be a substitute for qualified legal or accounting counsel.

222 New Jersey Division of Pensions and Benefits In performing this analysis, we relied, without audit, on census data, plan provisions, asset statements and other information (both written and oral) provided by the State of New Jersey Division of Pensions and Benefits. We have not audited or verified the census data, asset statements or other information. To the extent any of these are inaccurate or incomplete, the results of our analysis may likewise be inaccurate or incomplete. We performed a limited review of the data used directly in our analysis for reasonableness and consistency and have not found material defects in the data. If there are material defects in the data, it is possible that they would be uncovered by a detailed, systematic review and comparison of the data to search for data values that are questionable or for relationships that are materially inconsistent. Such a review was beyond the scope of our assignment. Future actuarial measurements may differ significantly from the current measurements presented in this analysis due to actual plan experience deviating from the actuarial assumptions, and changes in plan provisions, actuarial assumptions, and applicable law. An assessment of the potential range and cost effect of such differences is beyond the scope of this analysis. I am a member of the American Academy of Actuaries and meet its Qualification Standard to ren- der this actuarial opinion. Respectfully submitted, MILLIMAN, INC.

Scott F. Porter, FSA, MAAA

New Jersey Division of Pensions and Benefits 223 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS TEACHERS’ PENSION AND ANNUITY FUND

SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS

A. Actuarial Assumptions Interest: 7.90% per annum, compounded annually (as prescribed by the State Treasurer). Salary Scale: Salary increases vary by years of employment averaging 3.51% for a four year select period (June 30, 2012 — June 30, 2016) averaging 3.86% for a five year select period (June 30, 2016 — June 30, 2021) and averaging 4.47% thereafter. Schedule of annual rates are shown below:

Select Period Ending Years of Employment June 30, 2016 June 30, 2021 Ultimate Period 0-8 4.10% 4.50% 5.40% 9-12 4.85 5.25 5.95 13 4.80 5.20 5.80 14 4.35 4.85 5.45 15 4.15 4.55 5.05 16 3.70 4.10 4.50 17 3.45 3.85 4.15 18 3.15 3.55 3.95 19 2.90 3.30 3.70 20 2.80 3.10 3.60 21 2.55 2.95 3.25 22 2.30 2.60 3.10 23-25 2.20 2.60 2.95 26-30 2.20 2.40 2.80 31+ 2.15 2.25 2.50

Increases in Compensation Limits: The IRC Section 401(a)(17) limit is assumed to increase 2.75% per annum, compounded annually. The Social Security Taxable Wage Base is assumed to increase 3.75% per annum, compounded annually.

224 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS TEACHERS’ PENSION AND ANNUITY FUND

SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS, Continued

A. Actuarial Assumptions, Continued Termination: Withdrawal rates vary by age, years of employment, and gender. Illustrative rates are shown below:

Less Than 10 Years of Employment Female Years of Employment Male <40 40+ 0 8.19% 7.61% 7.61% 1 6.72 7.00 7.00 2 5.90 6.09 6.09 3 4.17 5.89 3.80 4 3.39 5.65 2.59 5 2.68 5.54 2.19 6 2.36 5.54 1.80 7 2.12 5.36 1.68 8 1.59 5.32 1.43 9 1.52 4.07 1.28

Annual Rates for Those With Deferred Annuity Benefits* 10-14 Years of Employment 15-19 Years of Employment 20-24 Years of Employment Age Male Female Male Female Male Female 30 0.81% 4.30% 0.59% 3.52% 0.39% 2.35% 35 0.85 3.21 0.61 2.63 0.41 1.75 40 0.71 1.50 0.51 1.22 0.34 0.82 45 0.59 0.69 0.42 0.57 0.28 0.38 50 0.71 0.70 0.51 0.58 0.34 0.38 55 1.36 1.34 0.98 1.10 0.65 0.73

* Members must have attained 10 years of service or 60 years of age (62 years of age for Class E and F members, 65 years of age for Class G members) in order to receive an annuity benefit.

Annual Rates for Those Receiving Return of Contributions 10-14 Years of Employment 15-19 Years of Employment 20-24 Years of Employment Age Male Female Male Female Male Female 30 0.55% 0.47% 0.40% 0.39% 0.26% 0.26% 35 0.51 0.34 0.37 0.28 0.25 0.19 40 0.34 0.18 0.24 0.14 0.16 0.10 45 0.21 0.07 0.15 0.05 0.10 0.04 50 0.15 0.07 0.11 0.05 0.07 0.04 55 0.10 0.09 0.07 0.07 0.05 0.05

New Jersey Division of Pensions and Benefits 225 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS TEACHERS’ PENSION AND ANNUITY FUND

SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS, Continued

A. Actuarial Assumptions, Continued Retirement: Rates of retirement vary by age, gender, and eligibility for an unreduced pension and post-retirement medical benefits. The rates listed below are for members hired prior to July 1, 2007 (Class A and B employees). Illustrative rates are shown below:

Less Than Age 55 or Attainment of Age 55 and 25 Years of Service Less Than 25 Years of Service First Eligibility After First Eligibility Age Male Female Male Female Male Female <47 1.2% 1.2% N/A N/A N/A N/A 48 1.5 1.5 N/A N/A N/A N/A 49 1.7 1.7 N/A N/A N/A N/A 50 2.0 2.0 N/A N/A N/A N/A 51 2.4 2.4 N/A N/A N/A N/A 52 2.8 2.8 N/A N/A N/A N/A 53 3.8 3.8 N/A N/A N/A N/A 54 4.8 4.8 N/A N/A N/A N/A 55 N/A N/A 15.0% 16.0% N/A N/A 56 N/A N/A 22.0 19.0 12.0% 13.0% 57 N/A N/A 22.0 19.0 13.0 14.0 58 N/A N/A 25.0 25.0 14.0 14.0 59 N/A N/A 25.0 25.0 15.0 15.0 60 10.0 7.0 27.0 30.0 21.0 20.0 61 10.0 7.0 30.0 32.0 23.0 22.0 62 11.0 10.0 40.0 46.0 36.0 32.0 63 11.0 10.0 40.0 44.0 30.0 26.5 64 11.0 10.0 40.0 44.0 30.0 26.5 65 17.0 15.0 50.0 50.0 38.0 35.0 66-70 17.0 15.0 50.0 50.0 30.0 30.0 71+ 20.0 20.0 50.0 50.0 30.0 30.0

226 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS TEACHERS’ PENSION AND ANNUITY FUND

SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS, Continued

A. Actuarial Assumptions, Continued The rates listed below are for members hired on or after July 1, 2007 and before November 2, 2008 (Class D employees). Illustrative rates are shown below:

Less Than Age 60 or Attainment of Age 60 and 25 Years of Service Less Than 25 Years of Service First Eligibility After First Eligibility Age Male Female Male Female Male Female <47 0.6% 0.6% N/A N/A N/A N/A 48 0.8 0.8 N/A N/A N/A N/A 49 0.9 0.9 N/A N/A N/A N/A 50 1.0 1.0 N/A N/A N/A N/A 51 1.2 1.2 N/A N/A N/A N/A 52 1.4 1.4 N/A N/A N/A N/A 53 1.9 1.9 N/A N/A N/A N/A 54 2.4 2.4 N/A N/A N/A N/A 55 11.5 11.5 N/A N/A N/A N/A 56 12.0 12.0 N/A N/A N/A N/A 57 12.5 12.5 N/A N/A N/A N/A 58 13.5 13.5 N/A N/A N/A N/A 59 14.0 14.0 N/A N/A N/A N/A 60 10.0 7.0 29.0% 30.0% N/A N/A 61 10.0 7.0 30.0 32.0 23.0% 22.0% 62 11.0 10.0 40.0 46.0 36.0 32.0 63 11.0 10.0 40.0 44.0 30.0 26.5 64 11.0 10.0 40.0 44.0 30.0 26.5 65 17.0 15.0 50.0 50.0 38.0 35.0 66-70 17.0 15.0 50.0 50.0 30.0 30.0 71+ 20.0 20.0 50.0 50.0 30.0 30.0

New Jersey Division of Pensions and Benefits 227 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS TEACHERS’ PENSION AND ANNUITY FUND

SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS, Continued

A. Actuarial Assumptions, Continued The rates listed below are for members hired after November 1, 2008 and before June 28, 2011 (Class E and F employees). Illustrative rates are shown below:

Less Than Age 62 or Attainment of Age 62 and 25 Years of Service Less Than 25 Years of Service First Eligibility After First Eligibility Age Male Female Male Female Male Female <47 0.6% 0.6% N/A N/A N/A N/A 48 0.7 0.7 N/A N/A N/A N/A 49 0.8 0.8 N/A N/A N/A N/A 50 0.9 0.9 N/A N/A N/A N/A 51 1.1 1.1 N/A N/A N/A N/A 52 1.3 1.3 N/A N/A N/A N/A 53 1.7 1.7 N/A N/A N/A N/A 54 2.2 2.2 N/A N/A N/A N/A 55 10.5 10.5 N/A N/A N/A N/A 56 10.8 10.8 N/A N/A N/A N/A 57 11.0 11.0 N/A N/A N/A N/A 58 12.0 12.0 N/A N/A N/A N/A 59 12.5 12.5 N/A N/A N/A N/A 60 17.0 19.0 N/A N/A N/A N/A 61 18.5 20.5 N/A N/A N/A N/A 62 29.5 24.0 50.0% 46.0% N/A N/A 63 11.0 10.0 40.0 44.0 30.0% 26.5% 64 11.0 10.0 40.0 44.0 30.0 26.5 65 17.0 15.0 50.0 50.0 38.0 35.0 66-70 17.0 15.0 50.0 50.0 30.0 30.0 71+ 20.0 20.0 50.0 50.0 30.0 30.0

228 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS TEACHERS’ PENSION AND ANNUITY FUND

SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS, Continued

A. Actuarial Assumptions, Continued The rates listed below are for members hired on or after June 28, 2011 (Class G employees). Illustrative rates are shown below:

Less Than Age 65 or Attainment of Age 65 and 30 Years of Service Less Than 30 Years of Service First Eligibility After First Eligibility Age Male Female Male Female Male Female <47 0.3% 0.3% N/A N/A N/A N/A 48 0.4 0.4 N/A N/A N/A N/A 49 0.4 0.4 N/A N/A N/A N/A 50 0.5 0.5 N/A N/A N/A N/A 51 0.6 0.6 N/A N/A N/A N/A 52 0.7 0.7 N/A N/A N/A N/A 53 0.9 0.9 N/A N/A N/A N/A 54 1.1 1.1 N/A N/A N/A N/A 55 5.0 5.0 N/A N/A N/A N/A 56 6.0 6.0 N/A N/A N/A N/A 57 7.0 7.0 N/A N/A N/A N/A 58 8.0 8.0 N/A N/A N/A N/A 59 9.0 9.0 N/A N/A N/A N/A 60 13.0 14.0 N/A N/A N/A N/A 61 14.0 15.0 N/A N/A N/A N/A 62 35.0 32.0 N/A N/A N/A N/A 63 25.0 25.0 N/A N/A N/A N/A 64 25.0 25.0 N/A N/A N/A N/A 65 40.0 40.0 50.0% 50.0% N/A N/A 66-70 17.0 15.0 50.0 50.0 30.0% 30.0% 71+ 20.0 20.0 50.0 50.0 30.0 30.0

New Jersey Division of Pensions and Benefits 229 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS TEACHERS’ PENSION AND ANNUITY FUND

SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS, Continued

A. Actuarial Assumptions, Continued Disability: Incidence of ordinary disabilities among active members apply upon the attainment of 10 years of service until the attainment of first eligibility for retirement. For members eligible for early retirement, the greater of the early retirement and disability benefit is valued. The rates vary by age, gender, and type of disability. Illustrative rates are shown below:

Ordinary Accidental Age Male Female Male Female 25 0.0301% 0.0379% 0.0060% 0.0060% 30 0.0473 0.0550 0.0060 0.0060 35 0.0609 0.0674 0.0060 0.0060 40 0.0701 0.0893 0.0060 0.0060 45 0.1023 0.1317 0.0060 0.0060 50 0.1421 0.1759 0.0060 0.0060 55 0.3732 0.3506 0.0060 0.0060

For Class F and G members assumed to receive a disability benefit under Chapter 3, P.L.2010, it is assumed that Class F members will begin receiving their retirement benefit at the earlier of age 70 or 36 years of service and Class G members will begin receiving their retirement benefit at age 70. The valuation excludes benefits paid from any disability income policy prior to retirement since these benefits are not paid from TPAF. Pre-retirement Mortality: Illustrative rates of mortality of active members which vary by age and gender are shown below. A generational approach is applied using Scale AA to account for future mortality improvement. The base year is 2000. Illustrative rates for the base year are shown below. No accidental deaths are assumed.

Ordinary Age Male Female 25 0.0345% 0.0170% 30 0.0376 0.0191 35 0.0353 0.0207 40 0.0591 0.0284 45 0.0890 0.0466 50 0.1342 0.0645 55 0.1978 0.1016 60 0.2747 0.1589 65 0.4263 0.2374 70 0.6725 0.3754

230 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS TEACHERS’ PENSION AND ANNUITY FUND

SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS, Continued

A. Actuarial Assumptions, Continued Post-retirement Mortality: Rates of mortality vary by age, gender, and type of retirement. A generational approach is applied using Scale AA to account for future mortality improvement for non-disabled annuitants. The base year is 2000 for males and 2003 for females. Illustrative rates for the base year and Scale AA are shown below:

Service Retirements and Beneficiaries Scale AA Disability Retirements Age Male Female Male Female Male Female 45 0.3573% 0.1375% 1.3% 1.6% 1.8057% 0.7078% 50 0.5265 0.2151 1.8 1.7 2.3180 1.0958 55 0.4781 0.3066 1.9 0.8 2.8354 1.5717 60 0.5813 0.4937 1.6 0.6 3.3634 2.0747 65 1.0238 0.6602 1.4 0.5 4.0139 2.6625 70 1.6962 1.0497 1.5 0.6 5.0066 3.5753 75 2.9598 1.7342 1.4 0.8 6.5654 4.9619 80 5.2282 3.0118 1.0 0.7 8.7498 6.8696 85 9.2106 6.4019 0.7 0.6 11.3282 9.5193

New Jersey Division of Pensions and Benefits 231 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS TEACHERS’ PENSION AND ANNUITY FUND

SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS, Continued

A. Actuarial Assumptions, Continued Non-contributory Members: 30% are assumed to return to contributory status. Beneficiaries: 100% of active members are assumed to have a beneficiary for receipt of the lump sum death benefit or employee contribution refund upon death. Form of Payment: Modified Cash Refund Annuity. Special Data Adjustments: Determination of employee type is based on Class Code and was used as provided by the Division. Active members where no salary was provided, no date of birth was provided, or ASF was negative were excluded from the valuation. A liability equal to the ASF was held. For beneficiaries where no gender code or date of birth was provided, reasonable assumptions were made based on records provided in prior years or the deceased retiree’s records. For retirees with a joint annuitant option code that was miss- ing a spouse’s date of birth, husbands are assumed to be 3 years older than wives. All such records were included in the valuation. Retiree members where no benefit and monthly allowance was provided, or no cause, class, or option was provided were excluded from the valuation. B. Actuarial Valuation Method: The projected Unit Credit Method was used as required by Chapter 62, P.L.1994 as modified by Chapters 115, P.L. 1997 and 133, P.L. 2001. Non-contributory life insurance benefits are funded on a term cost basis. C. Asset Valuation Method: A five year average of market value with write-up was used. This method takes into account appreciation (depreciation) in investments in order to smooth asset values by averaging the excess of the actual over the expected income, on a market value basis, over a five year period. Cash flows are based on an accrual accounting approach. This method is prescribed by statute. The market value of assets is used for the Contributory Group Insurance Premium Fund for GASB purposes. The interest rate has been decreased from 7.95% to 7.90% per the State Treasurer and the salary increase assumption has been modified to better reflect recent experience. The IRC Section 401(a)(17) limit increase assumption has been decreased from 3.00% to 2.75% per annum, compounded annually.The Social Security Taxable Wage Base increase assumption has been decreased from 4.00% to 3.75% per annum, compounded annually.

232 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS TEACHERS’ PENSION AND ANNUITY FUND

SCHEDULE OF RETIRED MEMBERS AND BENEFICIARIES ADDED TO AND REMOVED FROM ROLLS

Added to Rolls Removed From Rolls Rolls at End of Year % Increase in Average Average Valuation Annual Annual Annual Annual Annual Date Number Allowance Number Allowance Number Allowance Allowance Allowance 6/30/07 5.136 N/A 1,753 N/A 71,997 $2,427,632,794 4.65% $33,719 6/30/08 5,188 N/A 1,772 N/A 75,413 2,627,478,324 3.33 34,841 6/30/09 4,684 N/A 1,883 N/A 78,214 2,842,667,672 4.32 36,345 6/30/10 4,147 N/A 2,124 N/A 80,237 2,957,518,144 1.42 36,860 6/30/11 7,744 N/A 2,069 N/A 85,912 3,285,419,699 3.75 38,242 6/30/12 5,496 N/A 2,100 N/A 89,308 3,462,975,740 1.40 38,776

SCHEDULE OF ACTIVE MEMBER VALUATION DATA

Number of % Increase in Valuation Annual Average Active Average Date Compensation (b) Compensation (b/a) Members (a) Compensation 6/30/07 155,096 $9,676,260,309 $62,389 2.94% 6/30/08 156,087 10,040,685,465 64,327 3.11 6/30/09 157,109 10,353,262,361 65,899 2.44 6/30/10 157,023 10,659,241,596 67,883 3.01 6/30/11 151,115 10,416,454,800 68,931 1.54 6/30/12 150,200 10,488,890,840 69,833 1.31

SOLVENCY TEST

Percentage of Accrued Liabilities Accrued Liabilities for Covered by Net Assets (1) (2) (3) Active Retirees Active Members Net Assets Valuation Member & Deferred (Employer Available Date contributions Vested Financed) for Benefits* (1) (2) (3) 6/30/07 $7,489,958,068 $25,983,694,501 $14,653,800,841 $36,594,817,062 100.00% 100.00% 21.00% 6/30/08 7,914,403,491 28,072,978,525 14,670,896,258 36,541,083,946 100.00 100.00 4.00 6/30/09 8,450,026,966 30,276,614,675 14,691,686,935 34,708,001,341 100.00 87.00 0.00 6/30/10 9,077,370,573 27,435,656,099 11,904,905,673 33,136,475,630 100.00 88.00 0.00 6/30/11 8,987,300,905 30,765,265,431 10,470,122,414 32,156,229,300 100.00 75.00 0.00 6/30/12 9,432,073,781 32,411,855,950 9,560,713,006 31,079,212,983 100.00 67.00 0.00

*The above table is based on Valuation Assets. As of June 30, 2012, the solvency precentages would be 1) 100%, 2) 51% and 3) 0%, respectively, if based on the market value of assets of $26,038.0 million.

New Jersey Division of Pensions and Benefits 233 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS TEACHERS’ PENSION AND ANNUITY FUND

ANALYSIS OF FINANCIAL EXPERIENCE GAINS AND LOSSES IN UNFUNDED ACCRUED LIABILITIES RESULTING FROM DIFFERENCES BETWEEN ASSUMED EXPERIENCE AND ACTUAL EXPERIENCE

Actual Valuation as of June 30, 2012 June 30, 2011 June 30, 2010* Type of Activity ($ Millions) ($ Millions) ($ Millions) Economic Factors: Investment Return $(1,260.3) $(1,125.6) $(1,843.2) Salary Increases 119.5 330.0 188.3 Pension Adjustments (COLA) N/A** 251.3 587.5 Expenses (11.8) (12.7) (12.2) Demographic Factors: Active Members (100.8) (272.3) (78.9) New Entrants (35.5) (26.5) (47.7) Non-Contributing Members (15.6) (17.1) (28.0) Retirees and Beneficiaries (40.1) (52.9) (10.0) Total $(1,344.6) $(925.8) $(1,244.2)

* 2010 analysis based on 2006 experience study ** Some very small increases were provided during the year to offset negative adjustments from prior years. These increases are included in the demographic factors for retirees and beneficiaries.

234 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS TEACHERS’ PENSION AND ANNUITY FUND

SUMMARY OF PRINCIPAL PLAN PROVISIONS

This summary of plan provisions is intended only to must have an annual salary of $500. describe the essential features of the plan. All eligibility requirements and benefit amounts shall be determined Final Compensation: This is the average annual in strict accordance with the plan document itself. compensation upon which contributions by a member are based on the period consecutive years of 1. TYPE OF PLAN Creditable Service immediately preceding retirement or the period of highest fiscal years of The Plan is a contributory, defined benefit plan. Membership Service. The period equals three for Effective October 1, 2011, contributions by members hired prior to May 22, 2010 and five for Members are 6.5% and increase by 1/7 of 1% each Class F and later members. July thereafter until an ultimate rate of 7.5% is attained on July 1, 2018. For members hired on or Final Year Compensation: This is the compensa- after July 1, 2007, compensation for contributions is tion upon which contributions by a Member to the capped at the Social Security Taxable Wage Base Annuity Savings Fund are based in the last year of ($110,100 for 2012). For compensation in excess of Membership Service. the Social Security Wage Base, contributions on the excess compensation are made to the Defined Aggregate Member Contributions: This is the Contribution Retirement Program. sum of all amounts deducted from the compensation of a Member or contributed by him or on his 2. EFFECTIVE DATE behalf without interest. The Plan was established in 1919. It was reorgan- Class A Member: Any member who contributes ized and integrated with Social Security in 1955. towards retirement allowance based on 1/64th ben- Social Security integration was eliminated in 1966, efit rate per year of creditable service. i.e., reductions in retirement benefits based on Social Security benefits were eliminated. Class B Member: Any member hired prior to July 1, 2007 who contributes towards a retirement 3. ELIGIBILITY FOR MEMBERSHIP allowance based on 1/55th benefit rate per year of creditable service. Employees appointed to positions requiring certification as members of a regular teaching or profession- Class D Member: Any member hired on or after al staff of a public school system in New Jersey are July 1, 2007 and before November 2, 2008 who required to enroll as a condition of employment. contributes up to the Social Security Taxable Employees of the Department of Education holding Wage Base towards a retirement allowance based unclassified, professional and certificated titles are on 1/55th benefit rate per year of creditable serv- eligible for membership. Temporary or substitute ice payable at age 60. employees are not eligible. The eligible employee must be scheduled to work at least 32 hours per Class E Member: Any member hired after week effective May 22, 2010, per Chapter 1, P.L. November 1, 2008 and before May 22, 2010 who 2010. contributes up to the Social Security Taxable Wage Base towards a retirement allowance based 4. DEFINITIONS on 1/55th benefit rate per year of creditable service payable at age 62. Fiscal Year: A Fiscal Year is a 12-month period beginning on July 1 and ending on June 30. Class F Member: Any member hired after May 21, 2010 and before June 28, 2011 who contributes up Credited Service: A year of Credited Service for to the Social Security Taxable Wage Base towards a each year an employee is a Member of the retirement allowance based on 1/60th benefit rate Retirement System plus service, if any, covered by per year of creditable service payable at age 62. a prior service liability. Class F members must be scheduled to work at least 32 hours per week, Class G Member: Any member hired on or after Class E members also must have an annual salary June 28, 2011 who contributes up to the Social of $7,500 (indexed for inflation) and other members Security Taxable Wage Base towards a retirement

New Jersey Division of Pensions and Benefits 235 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS TEACHERS’ PENSION AND ANNUITY FUND

SUMMARY OF PRINCIPAL PLAN PROVISIONS, Continued

allowance based on 1/60th benefit rate per year of be either: creditable service payable at age 65. (i) the lump sum withdrawal benefit described in 5. COST-OF-LIVING ADJUSTMENT 7.a. below; or The Pension Adjustment Program provides a cost- (ii) the Service Retirement Benefit reduced by 1/4 of-living adjustment (COLA) to retirees and their of one percent for each month the retirement survivors who receive a monthly retirement date precedes age 55 for Class B members; or allowance from the TPAF. The first adjustment is received in the 25th month after the member’s (iii) the Service Retirement Benefit reduced by 1/12 retirement. Subsequent cost-of-living adjustments of one percent for each month the retirement are computed annually and are first reflected in date precedes age 60 but over age 55 and by February. The rate of increase is equal to 60 per- ¼ of one percent for each month the retirement cent of the percentage change between the aver- date precedes age 55, for Class D members. age CPI for the 12 month period ending December (iv) the Service Retirement Benefit reduced by 1/12 31 in the year of retirement and the August 31 pre- of one percent for each month the retirement ceding the February adjustment. Any pension date precedes age 62 but over age 55 and by adjustments to be paid on or after July 1, 2011 ¼ of one percent for each month the retirement have been eliminated for all members. date precedes age 55, for Class E and F mem- 6. RETIREMENT BENEFITS bers. Service Retirement: (v) the Service Retirement Benefit reduced by ¼ of one percent for each month the retirement date SERVICE RETIREMENT ELIGIBILITY: Eligibility precedes age 65, for Class G members. means age 60 (Class A, B, and D), age 62 (Class E and F) or age 65 (Class G) with no minimum Deferred Retirement: service requirement. Eligibility: A Member is eligible upon termination of SERVICE RETIREMENT BENEFIT: An employee's service prior to age 60 (Class A, B, and D), age 62 annual service retirement allowance is equal to a (Class E and F) or age 65 (Class G) and after 10 member annuity plus an employer pension which years of Creditable Service. together equals 1/64th of Final Compensation for Deferred Retirement Benefit: The benefit may be each year of service for Class A members and either: 1/55th of Final Compensation for each year of service for Class B, D and E members and 1/60th of (i) the lump sum withdrawal benefit described in Final Compensation for each year of service for 7.a. above; or Class F and G members. The Member annuity is (ii) a deferred retirement benefit, commencing at based on the member contributions credited at the age 60 (Class A, B, and D), age 62 (Class E valuation interest rate. and F) or age 65 (Class G), equal to a member Note: See Section 12 for special benefits for veter- annuity plus an employer pension which an members. together provide a retirement allowance equal to the service retirement benefit based on Final Early Retirement: Compensation and Creditable Service at date EARLY RETIREMENT ELIGIBILITY: Class A, B, D, of termination. Member annuity based on E and F members may retire after completion of 25 member contributions credited at the valuation years of Creditable Service, and Class G members interest rate. may retire after completion of 30 years of 7. TERMINATION BENEFITS Creditable Service. Lump Sum Withdrawal: EARLY RETIREMENT BENEFIT: The benefit may

236 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS TEACHERS’ PENSION AND ANNUITY FUND

SUMMARY OF PRINCIPAL PLAN PROVISIONS, Continued

ELIGIBILITY: A Member is eligible upon termina- Compensation. tion of service. Contributory Death Benefit: An additional, LUMP SUM WITHDRAWAL BENEFIT: The benefit employee-paid, death benefit is also available equals a refund of Aggregate Member Contributions through group insurance purchased by the Board plus, if the member has completed three years of of Trustees. Contributions for this benefit are service, interest accumulated at 2.0% per annum required by Members during the first year of enroll- allowed thereon. ment. Participation may be terminated after the first year. The benefit prior to retirement is 2 times com- 8. DEATH BENEFITS pensation. The benefit after retirement is 1/4 times Ordinary Death (Insured) Benefit - Lump Sum final year compensation (coverage at retirement, (Non-Contributory): and 10 years of participation for Members enrolling on or after July 1, 1970, is required). PRE-RETIREMENT DEATH BENEFIT ELIGIBILITY: Any current active member is eligible. Pre-retirement Accidental Death Benefit: PRE-RETIREMENT DEATH BENEFIT: The benefit ELIGIBILITY: A death resulting from injuries received is a lump sum benefit equal to the Aggregate from an accident during performance of duty and not Contributions with interest allowed thereon plus an a result of willful negligence is eligible. amount equal to 1-1/2 times Compensation at date PRE-RETIREMENT LUMP SUM BENEFIT: The of death. benefit is a lump sum equal to 1-1/2 times POST-RETIREMENT DEATH BENEFIT PRIOR TO Compensation. AGE 60 (CLASS A,B, AND D), AGE 62 (CLASS E PRE-RETIREMENT ACCIDENTAL DEATH AND F) OR AGE 65 (CLASS G) ELIGIBILITY: BENEFIT: The benefit payable is as follows: Eligible if disabled or retired early. (1) The annuity benefit to a widow or widower is POST-RETIREMENT DEATH BENEFIT PRIOR TO equal to 50% of Compensation, payable for life AGE 60 (CLASS A, B, AND D), AGE 62 (CLASS E or until remarriage. AND F) OR AGE 65 (CLASS G) BENEFIT: The benefit is as follows: (2) The annuity benefit, when there is no spouse, or the spouse is remarried, is equal to 20% of (1) For death while a Disabled Retiree the benefit Compensation for one child, 35% for two chil- is equal to 1-1/2 times Compensation. dren, 50% for three or more children. The ben- (2) For death while an Early Retiree, the benefit is efit is payable while the children are under equal to 3/16 times Compensation. age 18 and it is payable for life if they are disabled. (3) For death while vested terminated, the benefit is equal to his Aggregate Contributions with (3) The annuity benefit, when there is no spouse interest allowed thereon. or children, is equal to 25% of Compensation for one dependent parent and 40% for two POST-RETIREMENT DEATH BENEFIT AFTER dependent parents. AGE 60 (CLASS A, B, AND D), AGE 62 (CLASS E AND F) OR AGE 65 (CLASS G) ELIGIBILITY: (4) The benefit, when there is no relation as stat- Eligible after attainment of age 60 for service, ed above, is equal to the Aggregate deferred and disabled retirements (if not disabled, Contributions with interest allowed thereon 10 years of Creditable Service required for mem- and is payable to a beneficiary or to the bers enrolling on or after July 1, 1971). Member's estate. This is also the minimum benefit payable under 1, 2, or 3 above. POST-RETIREMENT DEATH BENEFIT AFTER AGE 60 (CLASS A, B, AND D), AGE 62 (CLASS E 9. DISABILITY BENEFITS AND F) OR AGE 65 (CLASS G) BENEFIT: The Ordinary Disability Retirement: benefit payable is equal to 3/16 times

New Jersey Division of Pensions and Benefits 237 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS TEACHERS’ PENSION AND ANNUITY FUND

SUMMARY OF PRINCIPAL PLAN PROVISIONS, Continued

ELIGIBILITY: A Member is eligible for Ordinary 12. SPECIAL BENEFITS FOR VETERANS Disability Retirement if he (she) has 10 years of Creditable Service and is totally and permanently Service Retirement: Eligible if member attains incapacitated from the performance of usual or age 60 and completes 20 years of service or available duties. attains age 55 and completes 25 years of service. Benefit equals 54.5% of highest 12-month contrib- ORDINARY DISABILITY RETIREMENT BENEFIT utory compensation. FOR CLASS A, B, D, AND E MEMBERS: The total retirement allowance is equal to the greater of: Chapter 97 Benefit: Eligible if age 55 and completes 35 years of service. Benefit equals 1/55th (1) 1.64% of Final Compensation times the num- of final year compensation for each year of serv- ber of years of Creditable Service; or ice. (2) 43.6% of Final Compensation 13. BENEFIT AND COMPENSATION LIMITS Note: See Section 12 for special benefits for veter- The provisions of IRC Section 415 and IRC Section an members. 401(a)(17), which limit benefits paid and limit compensation used in determining benefits, has been ORDINARY AND ACCIDENTAL DISABILITY reflected in this report. The IRC Section 415 limit is RETIREMENT BENEFIT FOR CLASS F AND G $200,000 and the 401(a)(17) compensation cap is MEMBERS: A disability benefit equal to 60% of $250,000 for 2012 and is applied on a calendar salary reduced by the initial Social Security benefit is year basis. paid until the earlier of age 70 or commencement of a retirement benefit from a disability income policy 14. FORMS OF PAYMENT outside of TPAF. The policy also makes employee contributions during the period of disability. Maximum Option — Single life annuity. Option 1 — Single life annuity with return of Accidental Disability Retirement for Class A, B, reserve option. D, and E members: Option 2 — 100% joint and survivor annuity. Option 3 — 50% joint and survivor annuity. ELIGIBILITY: A Member is eligible upon total and Option 4 — Other percentage joint and survivor annu- permanent incapacitation as a direct result of a ity. traumatic event occurring during and as a result of Option A — 100% pop-up joint and survivor annuity. the performance of regular or assigned duties. Option B — 75% pop-up joint and survivor ACCIDENTAL DISABILITY RETIREMENT BENEFIT: annuity. The benefit payable is equal to a Member annuity plus Option C — 50% pop-up joint survivor annuity. an employer pension which together equals 72.7% of Option D — 25% pop-up joint survivor annuity. the Compensation at date of injury. 15. CONTRIBUTIONS 10. ADDITIONAL OLD-PLAN BENEFIT Member Contributions: Each member becoming a An additional pension is payable to any retiree who member on or after January 1, 1956 and prior to was a member of the old Teachers' Retirement July 1, 2007 contributes at the rate of contribution Fund. This pension is the actuarial equivalent of his applicable to Class B members. Any member hired contributions to the old Teachers' Retirement Fund after June 30, 2007 and prior to November 2, 2008 without interest. are Class D members. Members hired after November 1, 2008 and prior to May 22, 2010 are 11. SPECIAL MINIMUM BENEFIT Class E members. Members hired after May 21, A member who retired prior to 1955 with 20 or more 2010 are Class F members, and members hired years of service may receive a minimum pension of after June 28, 2011 are Class G members. $500 a month inclusive of any amounts payable (1) CLASS D, E, F, OR G MEMBERSHIP: Class D, under any pension adjustments. E, F, or G members contribute at their applica-

238 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS TEACHERS’ PENSION AND ANNUITY FUND

SUMMARY OF PRINCIPAL PLAN PROVISIONS, Continued

ble contribution rate up to the Social Security ule, the increase factor is 3.25%. Taxable Wage Base. (2) CHAPTER 113 CONTRIBUTIONS: Certain (2) CLASS B MEMBERSHIP: Any member on School Districts have elected to exempt a December 31, 1955 may elect to be classified select group of employees from the compensa- as a Class B member and contribute at the rate tion limit under IRC Section 401(a)(17) incor- of contribution applicable to Class B members porated under Chapter 113. These school at his age at membership. Any such member districts will pay the full cost of this exemption may elect to increase his accumulated deduc- at a member's date of retirement. tions by the amount required by the Board to receive credit as a Class B member for all or 16. CHANGES IN PLAN PROVISIONS part of his service prior to such election. SINCE PRIOR VALUATION (3) CLASS A MEMBERSHIP: Any member who is None. not a veteran and does not elect to be classified as a Class B member continues to contribute at the rate of contribution applicable to his age at membership which was payable prior to the establishment of the integrated system, except that if he became a member subsequent to June 30, 1946 he will pay after January 1, 1955 at the rate of contribution in effect on June 30, 1946 applicable to his age at membership. Prior to July 1, 1979 different contribution rates were established for men and women. Effective on that date members contribute at rates intermediate between the rates previously applicable to male and female members, computed to provide the same present value of future employee contributions at each entry age on the basis of the membership as constituted on the effective date. Local Employer Contributions: (1) EARLY RETIREMENT INCENTIVE CONTRIBUTIONS: The State and Local employers which elected to participate in the early retirement incentive programs authorized by Chapters 137, 229 and 231, P.L.1991 and Chapters 48, 138 and 163, P.L.1993 and Chapter 23, P.L.2002 and Chapters 128 and 129, P.L.2003 pay contributions to cover the additional liability for these programs over amortization periods chosen by the employer (15 years for Chapters 128 and 129) or the amortization period for the Unfunded Accrued Liability of the system (Chapter 23, P.L.2002 and Chapter 21, P.L. 2008). The remaining present values are re-amortized upon changes to the interest rate assumption. Effective with the revised June 30, 2011 actuarial valuation, for any local employer with an increasing payment amortization sched-

New Jersey Division of Pensions and Benefits 239 April 3, 2013 Board of Trustees Police and Firemen’s Retirement System of New Jersey

Re: Actuary’s Certification Letter

Members of the Board:

An actuarial valuation of the Police and Firemen’s Retirement System is performed annually to measure the ongoing costs of the System (with required contributions determined separately for the State and Local employers) and the progress towards the funding goals of the System over time. In general, the financial goal of the Police and Firemen’s Retirement System is a pattern of contributions, which is sufficient to cover the normal cost of the System plus the contribution towards the unfunded accrued liability.

In accordance with the New Jersey statutes, employers are required to make two contributions to the System, a normal contribution and an accrued liability contribution. The normal contribution for basic allowances and cost of living adjustments (COLA’s) is defined under the Projected Unit Credit funding method as the present value of the benefits accruing during the current year. Prior to the July 1, 2010 valuation, the unfunded accrued liability contribution for basic allowances and COLA’s was determined as a level percentage of pay required to amortize the unfunded accrued liability over 30 years in annual payments increasing by 4% per year. The funding reform provisions of Chapter 78, P.L. 2011 changed the methodology used to amortize the unfunded accrued liability. Beginning with the July 1, 2010 actuarial valuation, the accrued liability contribution shall be computed so that if the contribution is paid annually in level dollars, it will amortize the unfunded accrued liability over an open 30 year period. Beginning with the July 1, 2018 actuarial valuation, the accrued liability contribution shall be computed so that if the contribution is paid annually in level dollars it will amortize the unfunded accrued liability over a closed 30 year period (i.e., for each subsequent actuarial valuation, the amortization period will decrease by one year.) Beginning with the July 1, 2028 actuarial valuation when the remaining amortization period reaches 20 years, any increase or decrease in the unfunded accrued liability as a result of actuarial losses or gains for subsequent valuation years shall serve to increase or decrease, respectively, the amortization period for the unfunded accrued liability, unless an increase in the amortization period will cause it to exceed 20 years. If an increase in the amortization period as a result of actuarial losses for a valuation year would exceed 20 years, the accrued liability contribution shall be computed for that valuation year using a 20 year amortization period.

The valuation reflects the funding reform provisions of Chapter 1, P.L. 2010. Chapter 1, P.L. 2010 allows the State Treasurer to phase in to the full recommended pension contribution. The State would be in compliance with its funding requirement provided the State makes a payment of at least 1/7th of the full contribution, as computed by the actuaries, in the State fiscal year commencing July 1, 2011 and makes a payment in each subsequent fiscal year that increases by at least an additional 1/7th until payment of the full contribution is made in the seventh fiscal year and thereafter.

The valuation reflects the final State contribution under Chapter 1, P.L. 2010 for fiscal year 2012, which allowed the State Treasurer to reduce the State normal and accrued liability contributions for fiscal year 2012 of $375,234,766 to $53,606,000. This amount excludes the Non-Contributory Group Insurance Premium of $5,640,203. Accordingly, a fiscal year 2012 employer contribution of only $53,606,000 was recognized for purposes of this valuation.

240 New Jersey Division of Pensions and Benefits In addition, the fiscal year 2013 recommended State pension contribution of $393,637,547 has been reduced to $112,467,869 and has been recognized as a receivable contribution for purposes of this valuation. This amount excludes the estimated Non-Contributory Group Insurance Premium of $8,648,000. Accordingly, a fiscal year 2013 employer contribution of $112,467,869 was recognized as a receivable contribution for purposes of this valuation. This amount may be subject to change per the requirements of the State’s fiscal year 2013 spending plan.

A State contribution of $398,052,381 is recommended for the fiscal year beginning July 1, 2013. This amount is comprised of an unfunded accrued liability payment of $274,067,426 plus a normal contribution of $123,984,955. However, the provisions of Chapter 1, P.L. 2010 allow the State Treasurer to reduce the recommended pension contribution for fiscal year 2014 to no less than 3/7th of the recommended pension contribution. Accordingly, the Chapter 1, P.L. 2010 minimum required pension contribution is $170,593,879. This is comprised of an unfunded accrued liability payment of $117,457,469 and a normal contribution of $53,136,410. This amount excludes the estimated Non-Contributory Group Insurance Premium of $7,276,000. This amount may be subject to change per the requirements of the State’s fiscal year 2014 spending plan.

The valuation reflects Chapter 19, P.L. 2009, which allowed the State Treasurer to reduce Local employers’ normal and accrued liability contributions to 50% of the amount certified for the State fiscal year 2009. In addition, certain Local employers who were eligible under Chapter 19, P.L. 2009 to defer 50% of their State fiscal year 2009 pension contribution but did not were permitted to defer 50% of their State fiscal year 2010 recommended pension contribution. This unfunded liability will be paid by the Local employers in level annual payments over a period of 15 years with the first payment due in the fiscal year ending June 30, 2012. The unfunded liability will be adjusted by the rate of return on the actuarial value of assets. The legislation also provides that a Local employer may pay 100% of the recommended contributions for State fiscal years 2009 and 2010. Such an employer will be credited with the full payments and any such amounts will not be included in their unfunded liability.

The valuation reflects the unauthorized early retirement incentive programs offered by certain Local employers. The additional liability incurred by the System due to these programs is included as a receivable contribution.

The underlying demographic data is maintained and provided by the New Jersey Division of Pensions and Benefits. The data is analyzed by Buck Consultants for internal completeness and consistency and compared with the prior valuation data to again ensure consistency.

As required under Chapter 255, P.L. 1944, an actuarial investigation of the demographic experience of the members and beneficiaries of the Police and Firemen’s Retirement System is made once in every three-year period. The July 1, 2012 valuation was based on the actuarial assumptions that were determined from the July 1, 2007 – June 30, 2010 Experience Study (which was approved by the Board of Trustees at the November 14, 2011 Board meeting). The Treasurer has recommended a change in the economic assumptions used for the valuation. The rate of investment return has been revised from 7.95% per annum to 7.90% per annum. The assumed salary increases have been reduced (the select period has been extended for five years and the ultimate rate has been decreased by 0.25%). These assumptions will remain in effect for valuation purposes until such time the Board or Treasurer recommends revised assumptions.

The valuation does not take into account any changes in U.S. equity prices and bond yields that have occurred after the valuation date. Taking these into account may significantly change the

New Jersey Division of Pensions and Benefits 241 market and actuarial value of assets shown. The effect of these events on any funded ratios shown, and on Retirement System calculations, is not known. Retirement System funding and financial accounting rules generally prohibit reflection of changes in assets and underlying economic conditions that occur after the valuation date.

In our opinion, the attached schedules of valuation results fairly represent the status of the Police and Firemen’s Retirement System and present an accurate view of historical data. The underlying assumptions and methods used for both funding and GASB disclosure purposes are consistent with the statutory specifications and represent a best estimate of the aggregate future experience of the System.

The following supporting schedules in the Actuarial Section were prepared by Buck Consultants:

• Summary of Actuarial Assumptions and Methods

• Schedule of Retired Members and Beneficiaries Added To and Removed From Rolls

• Schedule of Active Member Valuation Data

• Solvency Test

• Analysis of Past Financial Experience Reconciliation of Employer Contribution Rates

• Brief Summary of the Benefit and Contribution Provisions as Interpreted for Valuation Purposes

In addition, Buck Consultants prepared the “Schedule of Funding Progress” and the “Schedule of Employer Contributions” in the Financial Section.

To the best of our knowledge, this information is complete and accurate. The valuation was performed by, and under the supervision of, independent qualified actuaries who are members of the American Academy of Actuaries with experience in performing valuations for public retirement systems.

The valuation was prepared in accordance with the principles of practice prescribed by the Actuarial Standards Board and generally accepted actuarial procedures and methods. The calculations are based on the current provisions of the Retirement System, and on actuarial assumptions that are individually and in the aggregate internally consistent and reasonable based on the actual experience of the Retirement System. Respectfully submitted, Buck Consultants

Janet H. Cranna, M.A.A.A., F.S.A., E.A., F.C.A., M.S.P.P.A. Principal, Consulting Actuary

242 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS POLICE AND FIREMEN’S RETIREMENT SYSTEM

SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS

Section 13, Subsection (13) of Chapter 255, P.L. 1944 as amended by Chapter 157, P.L. 1972 of the New Jersey Statutes provides that once in every three-year period the actuary shall examine in detail the demographic experience of the members and beneficiaries of the Police and Firemen’s Retirement System to assure that the tables used for determining expected liabilities are consistent with recent experience. The July 1, 2012 actuarial valuation of the Police and Firemen’s Retirement System reflects the recognition of the actuarial assumptions determined from the July 1, 2007 – June 30, 2010 Experience Study which was approved by the Board of Trustees at the November 14, 2011 Board meeting and the revised economic assumptions, which were recommended by the Treasurer. An outline of the actuarial assumptions and methods used for the July 1, 2012 valuation is as follows: Valuation Interest Rate: 7.90% per annum, compounded annually. COLA: No future COLA is assumed. Separations from Service and Salary Increases: Representative values of the assumed annual rates of separation and annual rates of salary increases are as follows:

Annual Rates of Ultimate Select Withdrawal Withdrawal Up to the After Age 1st Year 2nd Year 3rd Year 4th Year 5 to 9 Years 9 Years 25 5.00% 1.62% 1.40% 0.90% 0.35% 0.00% 30 6.00 2.20 1.76 1.31 0.55 0.24 35 7.00 2.25 1.76 1.31 0.77 0.24 40 10.00 2.25 1.85 1.74 0.77 0.27 45 3.50 2.25 1.85 2.32 1.35 0.28 50 0.00 2.25 1.85 2.00 1.60 0.30 55 0.00 0.00 0.00 0.00 0.00 0.00

New Jersey Division of Pensions and Benefits 243 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS POLICE AND FIREMEN’S RETIREMENT SYSTEM

SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS, Continued

Annual Rates of Death Ordinary Disability Age Male* Female* Accidental Ordinary Accidental 25 0.037% 0.019% 0.006% 0.050% 0.029% 30 0.038 0.022 0.006 0.147 0.139 35 0.056 0.035 0.008 0.333 0.238 40 0.090 0.055 0.008 0.400 0.318 45 0.121 0.085 0.009 0.448 0.291 50 0.173 0.133 0.009 0.510 0.179 55 0.245 0.197 0.014 0.720 0.161 60 0.363 0.301 0.013 1.280 0.161 64 0.538 0.428 0.008 2.400 0.161 65 & Over 0.000 0.000 0.000 0.000 0.000

* RP-2000 Combined Healthy Mortality Tables projected on a generational basis from the base year of 2011 using Projection Scale AA. Rates shown above are unadjusted for Projection Scale AA.

Annual Rates of Service Retirements Salary Length of Service Increases Less than 21 to 24 26 or FY2012 to FY2022 and Age 21 Years* Years 25 Years More Years FY2021 Thereafter 25 8.62% 9.62% 30 6.16 7.16 35 4.67 5.67 40 2.50% 0.00% 45.57% 15.40% 4.01 5.01 45 2.50 0.00 52.98 15.40 3.95 4.95 50 3.75 0.00 56.77 15.40 3.95 4.95 55 3.20 0.00 59.04 17.48 3.95 4.95 60 3.20 0.00 77.49 22.78 3.95 4.95 64 37.50 0.00 77.49 37.80 3.95 4.95 65 & Over 100.00 100.00 100.00 100.00

* Retirement assumption prior to age 55 is for any member as of January 18, 2000 upon completion of 20 years of service.

244 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS POLICE AND FIREMEN’S RETIREMENT SYSTEM

SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS, Continued

Deaths After Retirement: RP-2000 Combined Healthy Mortality Tables for service retirements and beneficiaries projected on a generational basis from the base year of 2011 using Projection Scale AA. Special mortality tables are used for the period after disability retirement. Representative values of the assumed annual rates of mortality unadjusted for Projection Scale AA are as follows:

Service Retirements and Beneficiaries Disability Age Men Women Age Retirements 55 0.362% 0.272% 35 0.598% 60 0.675 0.506 40 0.634 65 1.274 0.971 45 0.803 70 2.221 1.674 50 1.058 75 3.783 2.811 55 1.210 80 6.437 4.588 60 1.426 85 11.076 7.745 65 1.949

Marriage: Husbands are assumed to be 3 years older than wives. Among the active population, 90% of participants are assumed married. No children are assumed. Neither the percentage married nor the number of children assumption is individually explicit, but they are considered reasonable as a single combined assumption. Valuation Method: Projected Unit Credit Method. This method essentially funds the System’s benefits accrued to the valuation date. Experience gains and losses are recognized in future accrued liability contributions. In accordance with Chapter 78, P.L. 2011, beginning with the July 1, 2010 actuarial valuation, the accrued liability contribution shall be computed so that if the contribution is paid annually in level dollars, it will amortize the unfunded accrued liability over an open 30 year period. Beginning with the July 1, 2018 actuarial valuation, the accrued liability contribution shall be computed so that if the contribution is paid annually in level dollars it will amortize the unfunded accrued liability over a closed 30 year period (i.e., for each subsequent valuation, the amortization period shall decrease by one year.) Beginning with the July 1, 2028 actuarial valuation, when the remaining amortization period reaches 20 years, any increase or decrease in the unfunded accrued liability as a result of actuarial losses or gains for subsequent valuation years shall serve to increase or decrease, respectively, the amortization period for the unfunded accrued liability, unless an increase in the amortization period will cause it to exceed 20 years. If an increase in the amortization period as a result of actuarial losses for a valuation year would exceed 20 years, the accrued liability contribution shall be computed for the valuation year using a 20 year amortization period. Chapter 78, P.L. 2011 increased member contributions from 8.5% to 10.0% of compensation with the increase effective October 2011. Based on discussions with the Division of Pension and Benefits, member contributions in excess of 8.5% of compensation shall not reduce employer normal cost contributions. Asset Valuation Method: A five year average of market values with write-up was used. This method takes into account appreciation (depreciation) in investments in order to smooth asset values by averaging the excess of the actual over the expected income, on a market value basis, over a five-year period.

New Jersey Division of Pensions and Benefits 245 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS POLICE AND FIREMEN’S RETIREMENT SYSTEM

SCHEDULE OF RETIRED MEMBERS AND BENEFICIARIES ADDED TO AND REMOVED FROM ROLLS

STATE

Added to Rolls Removed From Rolls Rolls at End of Year % Increase Average Valuation Annual Annual Annual** in Annual Annual Date Number Allowance Number Allowance Number* Allowance Allowance Allowance 7/1/12 483 $21,936,867 83 $2,596,132 5,423 $223,064,017 9.57% $41,133 7/1/11 578 26,839,762 117 3,116,709 5,023 203,579,687 14.28 40,530 7/1/10 466 20,752,289 85 2,577,204 4,562 178,146,637 11.69 39,050 7/1/09 448 19,077,696 82 2,165,118 4,181 159,495,927 14.73 38,148 7/1/08 430 18,467,571 50 1,293,499 3,815 139,018,953 15.32 36,440 7/1/07 409 17,214,170 70 1,657,156 3,435 120,552,765 17.50 36,844

LOCAL EMPLOYERS

Added to Rolls Removed From Rolls Rolls at End of Year % Increase Average Valuation Annual Annual Annual** in Annual Annual Date Number Allowance Number Allowance Number* Allowance Allowance Allowance 7/1/12 2,131 $119,315,514 855 $29,526,388 34,289 $1,644,739,476 5.88% $47,967 7/1/11 2,613 157,395,175 954 29,687,515 33,013 1,553,435,879 9.94 47,055 7/1/10 2,088 117,656,689 856 26,753,568 31,354 1,413,047,858 6.85 45,068 7/1/09 1,703 90,251,963 859 25,570,826 30,122 1,322,470,071 8.20 43,904 7/1/08 1,635 81,814,446 700 21,185,974 29,278 1,222,284,655 6.69 41,748 7/1/07 1,840 87,997,262 829 23,063,802 28,343 1,145,659,599 8.59 41,949

TOTAL SYSTEM

Added to Rolls Removed From Rolls Rolls at End of Year % Increase Average Valuation Annual Annual Annual** in Annual Annual Date Number Allowance Number Allowance Number* Allowance Allowance Allowance 7/1/12 2,614 $141,252,381 938 $32,122,520 39,712 $1,867,803,493 6.31% $47,034 7/1/11 3,191 184,234,937 1,071 32,804,224 38,036 1,757,015,566 10.42 46,193 7/1/10 2,554 138,408,978 941 29,330,772 35,916 1,591,194,495 7.37 44,303 7/1/09 2,151 109,329,659 941 27,735,944 34,303 1,481,965,998 8.86 43,202 7/1/08 2,065 100,282,017 750 22,479,473 33,093 1,361,303,608 7.51 41,136 7/1/07 2,249 105,211,432 899 24,720,958 31,778 1,266,212,364 9.38 41,402

* These values include Domestic Relations beneficiaries in receipt but exclude deferred vested terminations. ** The benefit amounts shown are the annualized benefits as of the valuation date and are not the actual benefits paid during the fiscal year.

246 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS POLICE AND FIREMEN’S RETIREMENT SYSTEM

SCHEDULE OF ACTIVE MEMBER VALUATION DATA*

STATE

% Increase Valuation Number of Annual Average in Average Date Active Members Compensation Compensation Compensation 7/1/12 7,187 $542,344,707 $75,462 (0.31)% 7/1/11 7,237 547,809,629 75,696 4.07 7/1/10 7,572 550,731,084 72,733 5.81 7/1/09 7,915 544,071,811 68,739 0.18 7/1/08 7,936 544,555,658 68,618 0.37 7/1/07 7,968 544,750,465 68,367 6.55

LOCAL EMPLOYERS

% Increase Valuation Number of Annual Average in Average Date Active Members Compensation Compensation Compensation 7/1/12 33,632 $3,218,932,891 $95,710 3.85% 7/1/11 34,762 3,203,676,618 92,160 3.96 7/1/10 36,632 3,247,452,128 88,651 3.04 7/1/09 37,235 3,203,508,603 86,035 2.43 7/1/08 37,530 3,152,174,629 83,991 4.54 7/1/07 37,163 2,985,725,499 80,341 4.39

TOTAL SYSTEM

% Increase Valuation Number of Annual Average in Average Date Active Members Compensation Compensation Compensation 7/1/12 40,819 $3,761,277,598 $92,145 3.16% 7/1/11 41,999 3,751,486,247 89,323 3.96 7/1/10 44,204 3,798,183,212 85,924 3.52 7/1/09 45,150 3,747,580,414 83,003 2.08 7/1/08 45,466 3,696,730,287 81,308 3.94 7/1/07 45,131 3,530,475,964 78,227 4.80

* Includes all contributing and non-contributing active members.

New Jersey Division of Pensions and Benefits 247 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS POLICE AND FIREMEN’S RETIREMENT SYSTEM

SOLVENCY TEST

STATE Percentage of Accrued Liabilities Covered by Accrued Liabilities for Net Assets Available

(1) Aggregate (2) (3) Net Assets Valuation Member Current Retirees Active & Inactive Available for Date Contributions & Beneficiaries Members Benefits* (1) (2) (3) 7/1/12 $444,953,351 $2,418,803,841 $1,163,197,690 $2,137,727,566 100.00% 69.98% 0.00% 7/1/11 434,353,581 2,240,031,414 1,252,140,684 2,173,255,647 100.00 77.63 0.00 7/1/10 439,239,135 1,914,386,462 1,318,735,661 2,190,654,958 100.00 91.49 0.00 7/1/09 427,713,716 1,998,329,812 1,567,215,952 2,268,272,056 100.00 92.10 0.00 7/1/08 417,037,087 1,745,461,874 1,586,619,949 2,343,170,793 100.00 100.00 11.39 7/1/07 405,941,434 1,477,965,756 1,542,724,623 2,368,209,888 100.00 100.00 31.39

LOCAL EMPLOYERS Percentage of Accrued Liabilities Covered by Accrued Liabilities for Net Assets Available

(1) Aggregate (2) (3) Net Assets Valuation Member Current Retirees Active & Inactive Available for Date Contributions & Beneficiaries Members Benefits* (1) (2) (3) 7/1/12 $2,726,801,462 $16,780,025,399 $8,198,341,576 $21,549,327,079 100.00% 100.00% 24.91% 7/1/11 2,611,348,759 16,074,784,440 8,292,498,989 21,051,681,692 100.00 100.00 28.53 7/1/10 2,610,141,488 14,279,203,074 8,712,653,564 20,367,865,987 100.00 100.00 39.92 7/1/09 2,527,185,808 15,411,236,571 10,510,419,386 20,669,565,701 100.00 100.00 25.99 7/1/08 2,396,790,723 14,303,353,327 10,170,962,482 20,404,804,535 100.00 100.00 36.42 7/1/07 2,262,086,714 13,148,597,825 9,151,510,904 19,575,249,807 100.00 100.00 45.51

TOTAL SYSTEM

Percentage of Accrued Liabilities Covered by Accrued Liabilities for Net Assets Available

(1) Aggregate (2) (3) Net Assets Valuation Member Current Retirees Active & Inactive Available for Date Contributions & Beneficiaries Members Benefits* (1) (2) (3) 7/1/12 $3,171,754,813 $19,198,829,240 $9,361,539,266 $23,687,054,645 100.00% 100.00% 14.06% 7/1/11 3,095,702,340 18,314,815,854 9,544,639,673 23,224,937,339 100.00 100.00 19.53 7/1/10 3,049,380,623 16,193,589,536 10,031,389,225 22,558,520,945 100.00 100.00 33.05 7/1/09 2,954,899,524 17,409,566,383 12,077,635,338 22,937,837,757 100.00 100.00 21.31 7/1/08 2,813,827,810 16,048,815,201 11,757,582,431 22,747,975,328 100.00 100.00 33.05 7/1/07 2,668,028,148 14,626,563,581 10,694,235,527 21,943,459,695 100.00 100.00 43.47

* Actuarial Value including receivable amounts.

248 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS POLICE AND FIREMEN’S RETIREMENT SYSTEM

ANALYSIS OF PAST FINANCIAL EXPERIENCE RECONCILIATION OF EMPLOYER CONTRIBUTION RATES

STATE

July 1, July 1, July 1, July 1, July 1, July 1, Valuation Year 2012 2011 2010 2009 2008 2007 Prior Year Contribution Rate 74.83%ø 70.70%ø 71.02%ø 64.36%ø 56.70%ø 53.70%ø

Net Change Due to: Current New Entrants 0.31 0.22 0.15 0.17 0.18 0.10 Excess Salary Increases (0.36) (0.43) (0.39) (0.64) (0.96) 0.16 Assumption/Method Changes (1.51)### (2.44)## (4.41)øø 0.00 1.20 0.00 COLA 0.04 (0.25) (0.41) 0.31 (0.04) 0.15 Active and Other Experience (1.43) (0.01) 0.41 0.01 0.62 0.76 Retiree Experience 0.06 0.01 0.03 0.02 0.08 0.08 Investment Loss/(Gain) 1.32 0.99 1.30 1.64 0.66 0.17 Net Effect of Chapter 8* (1.13) 0.48 0.68 1.03 1.06 0.33 Appropriation Act** 4.81 5.56 3.99 4.12 4.86 1.25 Chapter 78, P.L. 2011 N/A N/A (1.67) N/A N/A N/A Actual Contribution Rate • Prior to Reflecting Chapter 1, P.L. 2010 76.94%ø 74.83%ø 70.70%ø 71.02%ø 64.36%ø 56.70%ø • Reflecting Chapter 1, P.L. 2010 32.98%ø 21.38%ø 10.10%ø N/A N/A N/A

New Jersey Division of Pensions and Benefits 249 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS POLICE AND FIREMEN’S RETIREMENT SYSTEM

ANALYSIS OF PAST FINANCIAL EXPERIENCE RECONCILIATION OF EMPLOYER CONTRIBUTION RATES

LOCAL EMPLOYERS July 1, July 1, July 1, July 1, July 1, July 1, Valuation Year 2012 2011 2010 2009 2008 2007 ø Prior Year Contribution Rate 24.01%ø 23.08%ø 30.20%ø 27.85%ø 24.37%ø 24.11%

Net Change Due to: Current New Entrants 0.08 0.07 0.21 0.15 0.12 0.13 Excess Salary Increases (0.40) (0.47) (0.42) (0.70) 0.30 0.17 Assumption/Method Changes (0.90)### (0.05)## 0.66øø 0.00 2.73 0.00 COLA 0.04 (0.30) (0.50) 0.40 (0.06) 0.24 Active and Other Experience 1.18 2.47 1.83 1.97 1.13 1.10 Retiree Experience 0.07 0.01 0.04 0.03 0.12 0.12 Investment Loss/(Gain) 1.59 1.20 1.68 2.29 0.80 0.05 Net Effect of Chapter 8* (1.77) (2.00) (1.89) (1.79) (1.66) (1.55) Chapter 108 0.00 0.00 0.00 0.00 0.00 0.00 Chapter 78, P.L. 2011 N/A N/A (8.73) N/A N/A N/A Actual Contribution Rate# 23.90%ø 24.01%ø 23.08%ø 30.20%ø 27.85%ø 24.37%ø

* Net effect of the change in the calculation of the July 1, 1998 actuarial value of System assets and elimination of the Local Employers’ accrued liability contribution for the period ending June 30, 1997. ** Net change for July 1, 2011 and July 1, 2012 are due to the provisions of Chapter 1, P.L. 2010. Net change due to Appropriation Act for July 1, 2010 includes 0.17% change due to the Fiscal Year 2010 Appropriation Act, 0.15% change due to the Fiscal Year 2011 Appropriation Act and 3.67% for the Fiscal Year 2012 Appropriation Act. Net change due to Appropriation Act for July 1, 2009 includes 0.26% change due to the Fiscal Year 2009 Appropriation Act, 0.08% change due to the Fiscal Year 2010 Appropriation Act and 3.78% for the Fiscal Year 2011 Appropriation Act. Net change due to Appropriation Act for July 1, 2008 includes 1.63% change due to the Fiscal Year 2009 Appropriation Act and 3.23% change due to the Fiscal Year 2010 Appropriation Act. # Includes rates attributable to Chapter 204 requirement which is billed to specific locations. ## Net effect of the Board approved revised demographic assumptions based on the June 30, 2011 experience investigations and the Treasurer approved revised economic assumptions. ### Net effect of the Board approved revised demographic assumptions based on the Treasurer approved revised economic assumptions. Ø Excludes contribution rates payable to the Non-Contributory Group Insurance Premium Fund. For State, the contribution rates are 1.41% for 2012, 1.64% for 2011, 1.53% for 2010, 1.46% for 2009, 1.47% for 2008 and 1.47% for 2007. For Local, the contribution rates are .86% for 2012, 1.00% for 2011, .85% for 2010, 1.20% for 2009, 1.22% for 2008 and 1.25% for 2007. ØØ Due to the State’s decision to reduce the lag period between the valuation year and the contribution from three years to two years.

250 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS POLICE AND FIREMEN’S RETIREMENT SYSTEM

BRIEF SUMMARY OF THE BENEFIT AND CONTRIBUTION PROVISIONS AS INTERPRETED FOR VALUATION PURPOSES

1. ELIGIBILITY FOR MEMBERSHIP years of credited service for an employee who was Enrollment is restricted to eligible policemen and a member of the Retirement System as of January firemen who are permanent and full-time and who 18, 2000 and age 55 for an employee who became pass the physical and mental fitness requirements. a member of the Retirement System after January The maximum enrollment age is 35. 18, 2000; mandatory at age 65 (except that a mem- 2. DEFINITIONS ber hired prior to January 1, 1987 may remain a member of the System until the member attains the Plan Year: The 12-month period beginning on July earlier of age 68 or 25 years of service). Benefit is 1 and ending on June 30. an annual retirement allowance equal to a member Credited Service: A year of service is credited for annuity plus an employer pension which together each year an employee is a Member of the equals the greater of: Retirement System plus service, if any, covered by (i) 1/60th of FC for each year of Credited Service; or a prior service liability. (ii) 2% of FC multiplied by years of Credited Average Final Compensation (AFC): The aver- Service up to 30 plus 1% of FC multiplied by age annual compensation for the three consecutive years of Service over 30. (Prior to January 18, years of Service immediately preceding retirement 2000, this benefit was based on AFC rather or the highest three consecutive fiscal years of than FC. However, Policy Memorandum 4- Membership Service. 2000, which interpreted the provisions of Compensation: Base salary upon which contribu- Chapter 428, P.L.1999, authorized the change tions by a Member to the Annuity Savings Fund in the salary basis). were based in the last year of Service. For (iii) 50% of FC if the member has 20 or more years Accidental Death, benefits are computed at the of Credited Service. annual rate of salary. In accordance with Chapter 1, P.L. 2010, for members hired on or after May 22, Chapter 428 also requires that, in addition to the 2010, compensation cannot exceed the annual 50% of FC benefit, any member as of January 18, maximum wage contribution base for Social 2000 who will have 20 or more years of Credited Security pursuant to the Federal Insurance Service and is required to retire upon attaining age Contribution Act. 65 (except that a member hired prior to January 1, 1987 may remain a member of the System until the Final Compensation (FC): Annual compensation member attains the earlier age of 68 or 25 years of received by the member in the last 12 months of creditable service), shall receive an additional ben- Credited Service preceding his retirement. In efit equal to 3% of FC for each year of Credited accordance with Chapter 1, P.L.2010, for members Service over 20 years but not over 25 years. hired on or after May 22, 2010, FC means the average annual compensation for the three fiscal years Special Retirement: After completion of 25 years of membership providing the largest benefit. of Credited Service. The annual retirement benefit is equal to a member annuity plus an employer Accumulated Deductions: The sum of all pension which together equal 65% of FC plus 1% amounts deducted from the compensation of a of FC for each year of Credited Service over 25. Member or contributed by him or on his behalf without Effective for members hired after June 28, 2011, interest. the annual retirement benefit is equal to a member 3. BENEFITS annuity plus an employer pension which together equal 60% of FC plus 1% of FC for each year of Service Retirement: Eligibility means age 55 or 20 credited service over 25. There is a maximum ben-

New Jersey Division of Pensions and Benefits 251 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS POLICE AND FIREMEN’S RETIREMENT SYSTEM

BRIEF SUMMARY OF THE BENEFIT AND CONTRIBUTION PROVISIONS, Continued

efit of 70% of FC (65% of FC for members hired payable to a widow (widower) is equal to 50% of FC after June 28, 2011) except for those members with (20% of FC payable to one child, 35% of FC 30 or more years of Credited Service on June 30, payable to two children or 50% of FC payable to 1979. three or more children if there is no surviving widow or widower or if the widow or widower dies or Vested Termination: remarries or 25% of FC payable to one parent or a. Eligible upon termination of service prior to age 40% of FC payable to two parents if no surviving 55 and prior to 10 years of Service. The bene- widow, widower, or child. If no widow, widower, fit equals a refund of Accumulated Deductions child, or parent, the benefit payable to a beneficiary less any outstanding loans. is the aggregate Accumulated Contributions at the b. Eligible upon termination of service prior to age time of death). 55 and after 10 years of Service (but less than (2) For any member who retired after December 18, 20 years if a member on or prior to January 18, 1967, the benefit payable to widow (widower) is 2000 or less than 25 years of service if a mem- equal to 50% of FC plus 15% of FC for one child ber after January 18, 2000). The benefit is a and 25% of FC for two or more children. deferred retirement benefit, commencing at If no spouse, or spouse remarries, the benefit is age 55, equal to a member annuity plus an equal to 20% of FC for one child, 35% for two chil- employer pension which together provide a dren, and 50% for three or more children. retirement allowance equal to 2% of FC multiplied by years of Credited Service, up to 30 There is also a minimum benefit payable to widows plus 1% of FC multiplied by years of credited (widowers) of $4,500 a year. service over 30. (3) For any member who retired with an Accidental Death Benefits: Disability Benefit, the benefit payable is equal to $4,500 a year to the widow (widower). If there is no ORDINARY DEATH BENEFIT - LUMP SUM widow (widower) the benefit payable is $600 a year (1) If a member dies prior to retirement, the benefit for 1 child, $960 a year for 2 children, and $1,500 a payable is as follows: year for 3 or more children. The benefit for children A lump sum amount equal to 3-1/2 times FC is payable until age 18. payable to the member’s beneficiary. ACCIDENTAL DEATH BENEFIT (2) After retirement but prior to age 55, the benefit is as A death while active resulting from injuries received follows: from an accident during performance of duty is eligible (i) For death while a Disabled Retiree the benefit for a lump sum equal to the Accumulated Deductions is equal to 3-1/2 times Compensation. plus 3-1/2 times Compensation plus an annuity benefit (ii) For death while a Deferred Retiree the benefit payable is as follows: is equal to his Accumulated Deductions. (i) The benefit to a widow or widower is equal to 70% (iii) For death while a Retiree who has completed of Compensation. 20 years of Service, the benefit is equal to 1/2 (ii) The benefit, when there is no spouse, or spouse is times FC. remarried, is equal to 20% of Compensation for (3) After retirement and after age 55, the benefit one child, 35% for two children, 50% for three or payable is equal to 1/2 times Compensation. (Note: more children. The benefit is payable while the chil- If a Member is not disabled, 10 years of Credited dren are under age 18, or until age 24 if they are Service is required for Members enrolling after July full-time students, or it is payable for life if they are 1, 1971.) disabled. ORDINARY DEATH BENEFIT - (iii) The benefit, when there is no spouse or children, is SURVIVOR ANNUITY equal to 25% of Compensation for one parent and (1) If a member dies prior to retirement, the benefit 40% for two parents.

252 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS POLICE AND FIREMEN’S RETIREMENT SYSTEM

BRIEF SUMMARY OF THE BENEFIT AND CONTRIBUTION PROVISIONS, Continued

(iv) The benefit, when there is no relation as stated ACCIDENTAL DISABILITY RETIREMENT above, is equal to the Accumulated Deductions and A Member is eligible upon total and permanent is payable to a beneficiary or to the Member’s incapacitation from the performance of usual or estate. This is also the minimum benefit payable available duties as a result of injury during the per- under (i), (ii) and (iii). formance of regular duties. The benefit payable is Disability Benefits: equal to a Member annuity plus an employer pen- ORDINARY DISABILITY RETIREMENT sion which together equals 2/3 of the Compensation at date of injury. A Member is eligible for Ordinary Disability Retirement if he (she) has 4 years of Service and is totally and per- SPECIAL DISABILITY RETIREMENT manently incapacitated from the performance of usual A member is eligible for Special Disability or available duties. The benefit is equal to the greater Retirement if he (she) has 5 years of Credited of: Service, is under age 55, and has received a heart (i) 1-1/2% of FC times the number of years of transplant. The benefit payable is equal to a Credited Service; or Member annuity plus an employer pension which together equals 50% of FC. (ii) 40% of FC. 4. MEMBER CONTRIBUTIONS In addition, a member who has at least 20 years but less than 25 years of Credited Service and who is Each member contributes 8.5% of Compensation. required to retire upon application by the employer Chapter 78, P.L. 2011 increased the Member on or after January 18, 2000 shall receive a bene- Contributions from 8.5% to 10% of Compensation fit equal to a member annuity plus an employer effective October 2011. pension which together provide a total retirement allowance equal to 50% of FC plus 3% of FC multiplied by the number of years of Credited Service over 20 but not over 25.

New Jersey Division of Pensions and Benefits 253 April 3, 2013 Board of Trustees State Police Retirement System of New Jersey

Re: Actuary’s Certification Letter

Members of the Board:

An actuarial valuation of the State Police Retirement System is performed annually to measure the ongoing costs of the System and the progress towards the funding goals of the System over time. In general, the financial goals of the State Police Retirement System are a pattern of contributions, which is sufficient to cover the normal cost of the System plus the contribution towards the unfunded accrued liability.

In accordance with the New Jersey statutes, employers are required to make two contributions to the System, a normal contribution and an accrued liability contribution. The normal contribution for basic allowances and cost of living adjustments (COLA’s) is defined under the Projected Unit Credit funding method as the present value of the benefits accruing during the current year. Prior to the July 1, 2010 valuation, the unfunded accrued liability contribution for basic allowances and COLA’s was determined as a level percentage of pay required to amortize the unfunded accrued liability over 30 years in annual payments increasing by 4.0% per year. The funding reform provisions of Chapter 78, P.L.2011 changed the methodology used to amortize the unfunded accrued liability. Beginning with the July 1, 2010 actuarial valuation, the accrued liability contribution shall be computed so that if the contribution is paid annually in level dollars, it will amortize the unfunded accrued liability over an open 30 year period. Beginning with the July 1, 2019 actuarial valuation, the accrued liability contribution shall be computed so that if the contribution is paid annually in level dollars it will amortize the unfunded accrued liability over a closed 30 year period (i.e., for each subsequent actuarial valuation, the amortization period shall decrease by one year). Beginning with the July 1, 2029 actuarial valuation when the remaining amortization period reaches 20 years, any increase or decrease in the unfunded accrued liability as a result of actuarial losses or gains for subsequent valuation years shall serve to increase or decrease, respectively, the amortization period for the unfunded accrued liability, unless an increase in the amortization period will cause it to exceed 20 years. If an increase in the amortization period as a result of actuarial losses for a valuation year would exceed 20 years, the accrued liability contribution shall be computed for the valuation year using a 20 year amortization period.

The valuation reflects the final State contribution under Chapter 1, P.L. 2010 for fiscal year 2012, which allowed the State Treasurer to reduce the State normal and accrued liability contributions for fiscal year 2012 of $89,671,744 to $12,810,000. In addition, the fiscal year 2013 recommended State pension contribution of $89,535,903 has been reduced to $25,581,686 and has been recognized as a receivable contribution for purposes of this valuation. This amount may be subject to change per the requirements of the State’s fiscal year 2013 spending plan.

254 New Jersey Division of Pensions and Benefits A contribution of $106,977,623 is recommended for the fiscal year beginning July 1, 2013. This amount is comprised of an unfunded accrued liability payment of $67,962,316 plus a normal contribution of $39,015,307. However, the provisions of Chapter 1, P.L. 2010 allow the State Treasurer to reduce the recommended pension contribution for fiscal year 2014 to no less than 3/7th of the recommended pension contribution. Accordingly, the Chapter 1, P.L.2010 minimum required pension contribution is $45,847,553. This is comprised of an unfunded accrued liability payment of $29,126,707 and a normal contribution of $16,720,846. This amount may be subject to change per the requirements of the State’s fiscal year 2014 spending plan.

As required under Chapter 89, P.L.1965 experience studies are performed once in every three year period. The valuation was prepared on the basis of the demographic assumptions that were determined from the July 1, 2008 – June 30, 2011 Experience Study and approved by the Board of Trustees at the September 25, 2012 Board meeting. The Treasurer has recommended a change in the economic assumptions used for the valuation. The rate of investment return has been revised from 7.95% per annum to 7.90% per annum. The assumed future salary increases have been revised to be 3.45% per annum for fiscal year ending 2012 through fiscal year ending 2021 and 4.45% per annum for fiscal years ending 2022 and thereafter. These assumptions will remain in effect for valuation purposes until such time the Board or the Treasurer recommends revised assumptions.

The valuation cost method used is the projected unit credit method. This method essentially funds the System’s benefits accrued to the valuation date. Experience gains and losses are recognized in future accrued liability contributions. The asset valuation method used was a five- year average of market values with write-up. This method takes into account appreciation (depreciation) in investments in order to smooth asset values by averaging the excess of the actual over the expected income, on a market value basis, over a five-year period.

The valuation does not take into account any changes in U.S. equity prices and bond yields that have occurred after the valuation date. Taking these into account may significantly change the market and actuarial value of assets shown. The effect of these events on any funded ratios shown, and on Retirement System calculations, is not known. Retirement System funding and financial accounting rules generally prohibit reflection of changes in assets and underlying economic conditions that occur after the valuation date.

In our opinion, the attached schedules of valuation results fairly represent the status of the State Police Retirement System and present an accurate view of historical data. The underlying assumptions and methods used for both funding and GASB disclosure purposes are consistent with the statutory specifications and represent a best estimate of the aggregate future experience of the System.

The following supporting schedules in the Actuarial Section were prepared by Buck Consultants:

• Summary of Actuarial Assumptions and Methods

• Schedule of Retired Members and Beneficiaries Added To and Removed From Rolls

• Schedule of Active Member Valuation Data

• Solvency Test

New Jersey Division of Pensions and Benefits 255 • Analysis of Past Financial Experience Reconciliation of Employer Contribution Rates

• Summary of the Benefit and Contribution Provisions as Interpreted for Valuation Purposes

In addition, Buck Consultants prepared the “Schedule of Funding Progress” and the “Schedule of Employer Contributions” in the Financial Section.

The valuation was prepared in accordance with the principles of practice prescribed by the Actuarial Standards Board and generally accepted actuarial procedures and methods. The calculations are based on the current provisions of the Retirement System, and on actuarial assumptions that are individually and in the aggregate internally consistent and reasonable based on the actual experience of the Retirement System.

Respectfully submitted,

Buck Consultants

Janet H. Cranna, M.A.A.A., F.S.A., E.A., F.C.A., M.S.P.P.A.

Principal, Consulting Actuary

256 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS STATE POLICE RETIREMENT SYSTEM

SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS

Section 32 of Chapter 89, P.L. 1965 of the New Jersey Statutes provides that once in every three-year period the actuary shall examine in detail the demographic experience of the members and beneficiaries of the State Police Retirement System to assure that the tables used for determining expected liabilities are consistent with recent experience. The demographic assumptions used for the July 1, 2012 actuarial valuation of the State Police Retirement System were based on the results of the experience study, which covered the period from July 1, 2008 to June 30, 2011, which were approved by the Board of Trustees, and the revised economic assumptions, which were recommended by the Treasurer. An outline of the actuarial assumptions and methods used for the July 1, 2012 valuation is as follows: Valuation Interest Rate: 7.90% per annum, compounded annually. COLA: No future COLA is assumed. Salary Increases: Salaries are assumed to increase by 3.45% per year for fiscal year ending 2012 through fiscal year ending 2021 and 4.45% per year for fiscal years ending 2022 and thereafter. Termination: Withdrawal rates vary by length of service. Illustrative rates are shown below:

Lives Per Thousand Less Than 5 Five to Nineteen Age Years of Service Years of Service 25 5.0 0.0 30 5.0 4.0 35 8.3 1.0 40 0.0 1.5 45 0.0 2.0 50 0.0 0.0

Separations from Service: Representative mortality, disability, and retirement rates are as follows:

Annual Rates of* Ordinary Death** Accidental Ordinary Accidental Age Male Female Death Disability Disability 25 0.4% 0.2% 0.4% 0.6% 0.3% 30 0.4 0.3 0.5 0.9 0.5 35 0.6 0.5 0.5 2.4 1.9 40 0.9 0.7 0.5 2.5 2.1 45 1.2 1.1 0.6 3.1 2.1 50 1.7 1.7 0.9 5.4 2.2

* Per one thousand lives. ** RP-2000 Combined Healthy Male (set back 3 years) and RP-2000 Combined Healthy Female Mortality Tables projected on a generational basis from the base year of 2012 using Projection Scale AA. Rates shown above are unadjusted for Projection Scale AA.

New Jersey Division of Pensions and Benefits 257 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS STATE POLICE RETIREMENT SYSTEM

SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS, Continued

Marriage: Husbands are assumed to be 3 years older than wives. Among the active population, 83.3% of participants are assumed married. No children are assumed. Neither the percentage married nor number of children assumption is individually explicit but they are considered as a single combined assumption. Valuation Method: Projected Unit Credit Method. This method essentially funds the System’s benefits accrued to the valuation date. Experience gains and losses are recognized in future accrued liability contributions. In accordance with Chapter 78, P.L. 2011, beginning with the July 1, 2010 actuarial valuation, the accrued liability contribution shall be computed so that if the contribution is paid annually in level dollars, it will amortize the unfunded accrued liability over an open 30 year period. Beginning with the July 1, 2019 actuarial valuation, the accrued liability contribution shall be computed so that if the contribution is paid annually in level dollars it will amortize the unfunded accrued liability over a closed 30 year period (i.e., for each subsequent valuation, the amortization period shall decrease by one year). Beginning with the July 1, 2029 actuarial valuation, when the remaining amortization period reaches 20 years, any increase or decrease in the unfunded accrued liability as a result of actuarial losses or gains for subsequent valuation years shall serve to increase or decrease, respectively, the amortization period for the unfunded accrued liability, unless an increase in the amortization period will cause it to exceed 20 years. If an increase in the amortization period as a result of actuarial losses for a valuation year would exceed 20 years, the accrued liability contribution shall be computed for the valuation year using a 20 year amortization period. Chapter 78, P.L.2011 increased the member contributions from 7.5% to 9.0% of compensation. Based on discussions with the Division of Pension and Benefits, member contributions in excess of 7.5% of compensation shall not reduce the State normal cost contribution. Asset Valuation Method: A five-year average of market values with write-up. (This method takes into account appreciation (depreciation) in investments in order to smooth asset values by averaging the excess of the actual over the expected income, on a market value basis, over a five-year period.) Deaths After Retirement: For healthy inactive members and beneficiaries of deceased members the RP-2000 Combined Healthy Male (set back 3 years) and RP-2000 Combined Healthy Female Mortality tables projected on a generational basis from the base year of 2012 using Projection Scale AA. For disabled members the RP-2000 Combined Healthy Male (set forward 5 years) and RP-2000 Combined Healthy Female Mortality (set forward 5 years) tables are used. Illustrative rates of mortality unadjusted for Projection Scale AA are shown below:

Lives Per Thousand Retired Members and Beneficiaries of Deceased Members Disabled Members Age Males Females Males Females 55 2.7 2.7 6.8 5.1 60 4.7 5.1 12.7 9.7 65 8.8 9.7 22.2 16.7 70 16.1 16.7 37.8 28.1 75 27.3 28.1 64.4 45.9 80 46.9 45.9 110.8 77.5 85 80.5 77.5 183.4 131.7 90 136.0 131.7 267.5 194.5

258 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS STATE POLICE RETIREMENT SYSTEM

SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS, Continued

Rates of Retirement: Rates of retirement vary by length of service and age (if more than 24 years of service) with 100% of those remaining at age 55 retiring at age 55. The rates are shown below:

Service Lives Per 100 20 2.0 21 0.5 22 0.0 23 0.0 24 0.0 25 45.5 Greater than 25: (a) through age 42 5.0 (b) ages 43-47 25.0 (c) ages 48-53 30.0 (d) age 54 55.0

New Jersey Division of Pensions and Benefits 259 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS STATE POLICE RETIREMENT SYSTEM

SCHEDULE OF RETIRED MEMBERS AND BENEFICIARIES ADDED TO AND REMOVED FROM ROLLS

Added to Rolls Removed From Rolls Rolls at End of Year % Increase Average Valuation Annual Annual Annual** in Annual Annual Date Number Allowance Number Allowance Number* Allowance Allowance Allowance 7/1/12 256 $17,483,694 44 $1,557,365 3,030 $169,491,353 10.81% $55,938 7/1/11 232 14,848,311 66 2,030,490 2,818 152,950,538 10.14 54,276 7/1/10 107 6,656,153 40 1,345,937 2,652 138,873,702 3.97 52,366 7/1/09 119 7,458,400 54 1,593,106 2,585 133,573,198 7.53 51,672 7/1/08 155 9,823,122 61 1,709,085 2,520 124,219,225 8.44 49,293 7/1/07 130 7,185,755 42 1,173,986 2,426 114,548,588 8.19 47,217

SCHEDULE OF ACTIVE MEMBER VALUATION DATA

Valuation Number of Annual Average % Increase (Decrease) in Date Active Members Compensation Compensation Average Compensation

7/1/12 2,721 $283,219,927 $104,086 7.56% 7/1/11 2,844 275,219,752 96,772 1.12 7/1/10 3,030 289,980,657 95,703 0.48 7/1/09 3,016 287,267,502 95,248 (0.14) 7/1/08 2,947 281,087,566 95,381 3.90 7/1/07 2,999 275,301,995 91,798 4.38

SOLVENCY TEST

Percentage of Accrued Liabilities Covered Accrued Liabilities for by Net Assets Available

(1) Aggregate (2) (3) Net Assets Valuation Member Current Retirees Active & Inactive Available for Date Contributions & Beneficiaries Members Benefits* (1) (2) (3) 7/1/12 $180,407,372 $1,822,707,659 $764,653,782 $1,995,388,133 100.00% 99.58% 0.00% 7/1/11 182,626,003 1,634,856,377 764,468,466 2,015,624,130 100.00 100.00 25.92 7/1/10 185,587,970 1,466,806,024 844,700,143 2,019,350,048 100.00 100.00 43.44 7/1/09 175,349,297 1,647,110,535 1,002,955,736 2,067,242,877 100.00 100.00 24.41 7/1/08 166,360,000 1,492,340,059 950464,810 2,136,006,509 100.00 100.00 50.22 7/1/07 160,384,261 1,399,050,008 926,214,961 2,101,672,160 100.00 100.00 58.54

*Actuarial value including receivable amounts.

260 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS STATE POLICE RETIREMENT SYSTEM

ANALYSIS OF PAST FINANCIAL EXPERIENCE RECONCILIATION OF EMPLOYER CONTRIBUTION RATES

July 1, July 1, July 1, July 1, July 1, July 1, Valuation Year 2012 2011 2010 2009 2008 2007 Effective Prior Year Contribution Rate 32.53%** 30.92%** 36.11%** 29.34%** 27.57%** 26.52%** Net Change Due to: Current New Entrants 0.11 0.00 0.43 0.60 0.26 0.36 Excess Salary Increases 1.58 (0.64) (1.60) (0.87) (0.21) 0.14 Assumption/Method Changes 0.20 (1.75) N/A 2.41 N/A N/A COLA 0.00 (0.39) (0.56) 0.43 (0.61) 0.28 Retiree Mortality 0.37 0.05 0.10 0.06 0.05 0.07 Active and Other Experience (0.88) 0.19 0.59 (0.20) (0.03) (0.55) Investment Loss/(Gain) 1.87 1.61 1.90 2.66 0.86 (0.02) Appropriation Act* 2.00 2.54 2.17 1.68 1.45 0.77 Chapter 78, P.L. 2011 N/A N/A (8.22) N/A N/A N/A Actual Contribution Rate: • Prior to Reflecting Chapter 1, P.L.2010 37.78%** 32.53%** 30.92%** 36.11%** 29.34%** 27.57%** • Reflecting Chapter 1, P.L. 2010 16.18%** 9.30%** 4.42%** N/A N/A N/A

* Changes in 2011 and 2012 are due to the provisions of Chapter 1, P.L. 2010.

** Excludes contribution rates of 0.67% for 2012, 0.73% for 2011, 0.62% for 2010, 0.56% for 2009, 0.55% for 2008 and 0.65% for 2007 for premiums payable to the Non-Contributory Group Insurance Premium Fund.

New Jersey Division of Pensions and Benefits 261 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS STATE POLICE RETIREMENT SYSTEM

SUMMARY OF THE BENEFIT AND CONTRIBUTION PROVISIONS AS INTERPRETED FOR VALUATION PURPOSES

1. ELIGIBILITY FOR MEMBERSHIP membership providing the largest possible benefit All members of the former State Police and to the member or the member’s beneficiary . Such Benevolent Fund: full-time commissioned officers, term shall include the value of the member’s main- non-commissioned officers or troopers of the tenance allowance.) Division of State Police. Membership is a condition Aggregate Contributions: The sum of all amounts of employment. deducted from the compensation of a member or contributed by him or on his behalf. For contribution 2. DEFINITIONS purposes, compensation does not include over- Plan Year: The 12-month period beginning on July time, bonuses, maintenance or any adjustments 1 and ending on June 30. before retirement. Service: Service rendered while a member as Adjusted Final Compensation: The amount of described above. compensation or final compensation as adjusted, Credited Service: A year is credited for each year as the case may be, increased by the same per- of service as an officer or trooper in the State centage increase which is applied in any adjust- Police. Service with other State Retirement ments of the compensation schedule of active Systems is included in the calculation of the retire- members after the member’s death and before the ment benefit at the rate of 1% of final compensation date on which the deceased member of the retire- for each year of service credit. ment system would have accrued 25 years of service under an assumption of continuous service, at Compensation: Based on contractual salary, which time that amount will become fixed. including maintenance allowance, received by the Adjustments to compensation or adjusted final member in the last 12 months of credited service compensation shall take effect at the same time as preceding retirement, termination or death. any adjustments in the compensation schedule of Compensation does not include individual salary active members. adjustments granted primarily in anticipation of the retirement or for temporary or extracurricular duties 3. BENEFITS beyond the ordinary work day. (Effective June 30, Service Retirement: Mandatory retirement at age 1996, Chapter 113, P.L. 1997 provided that the 55. Voluntary retirement prior to age 55 with 20 amount of compensation used for employer and years of credited service. Benefit is an annual member contributions and benefits under the pro- retirement allowance equal to the greater of (a), (b), gram cannot exceed the compensation limitation of or (c), as follows: Section 401(a)(17) of the Internal Revenue Code; Chapter 1, P.L. 2010 provides that for members a. 50% of final compensation; hired on or after May 22, 2010, the amount of com- b. For members retiring with 25 or more years of pensation used for employer and member contribu- service, 65% of final compensation, plus 1% for tions and benefits under the System cannot exceed each year of service in excess of 25 years, to a the annual maximum wage contribution base for maximum of 70% of final compensation. Social Security, pursuant to the Federal Insurance c. For members as of August 29, 1985 who would Contributions Act.) not have 20 years of service by age 55, bene- Final Compensation: Average compensation fit as defined in (a) above. For members as of received by member in last 12 months of credited August 29, 1985 who would have 20 years of service preceding retirement or death. Such term service but would not have 25 years of service includes the value of the member’s maintenance at age 55, benefit as defined in (a) above plus allowance for the same period. (Chapter 1, P.L. 3% for each year of service in excess of 20 2010 provides that for members hired on or after years. May 22, 2010, Final Compensation means the Vested Termination: Termination of service prior to average annual salary for service for which contri- age 55. Benefit for 10 to 20 years of Service - Refund butions are made during any three fiscal years of of aggregate contributions, or a deferred life annuity

262 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS STATE POLICE RETIREMENT SYSTEM

SUMMARY OF THE BENEFIT AND CONTRIBUTION PROVISIONS, Continued

beginning at age 55 equal to 2% of final compensa- duty and of any other available duty in the Division tion for each year of service up to 20 years. of State Police and such incapacity is likely to be Ordinary Death: permanent. BEFORE RETIREMENT a. The benefit for members with less than four years of service is a refund of the member’s Death of an active member of the plan. Benefit is aggregate contributions. equal to: b. For members with at least four years of service, a. Lump sum payment equal to 3-1/2 times final the benefit is an immediate life annuity equal to compensation, plus 40% of final compensation plus 1-1/2% of final b. Spousal life annuity of 50% of final compensa- compensation for years of creditable service in tion payable until spouse’s death or remarriage. excess of 26-2/3. If there is no surviving spouse, or upon death or c. For members who are forced to retire with 20 remarriage, a total of 20%, 35% or 50% of final but less than 25 years of service, the benefit is compensation payable to one, two or three 50% of the member’s final compensation plus dependent children, respectively. If there is no 3% of final compensation for each year of serv- surviving spouse (or dependent children), an ice in excess of 20 years, to a maximum of 65% amount equal to 25% or 40% of final compensa- of final compensation. tion to one or two dependent parents. For death following disability retirement, a lump Minimum benefit: Aggregate contributions. sum equal to 3-1/2 times final compensation if AFTER RETIREMENT death occurs prior to age 55 or 1/2 of final compen- Death of a retired member of the plan. The benefit sation after age 55. is equal to: Accidental Disability Retirement: Totally and per- a. Lump sum of 50% of final compensation, plus manently disabled as a direct result of a traumatic event occurring during and as a result of his regu- b. Spousal life annuity of 50% of final compensa- lar or assigned duties. Benefit is an immediate life tion payable until spouse’s death or remarriage. annuity equal to 2/3 of final compensation. Upon If there is no surviving spouse, or upon death death after disability retirement, lump sum benefit or remarriage, a total of 20%, 35% or 50% of of 3-1/2 times final compensation if death occurs final compensation payable to one, two or three before 55 and 1/2 times final compensation if death dependent children, respectively. occurs after age 55. Accidental Death: Death of an active member of 4. MEMBER CONTRIBUTIONS the plan resulting during performance of duties. Benefit is equal to: Each member contributes 7.5% of Compensation. a. Lump sum payment equal to 3-1/2 times final Chapter 78, P.L. 2011 increased Member compensation, plus Contributions from 7.5% to 9.0% of Compensation effective October 2011. b. Spousal life annuity of 70% of final compensation payable until spouse’s death. If there is no surviving spouse, or upon death of the surviving spouse, a total of 20%, 35% or 50% of adjusted final compensation payable to one, two, or three dependent children, respectively. If there is no surviving spouse or dependent children, 25% or 40% of final compensation to one or two dependent parents. Ordinary Disability Retirement: Mentally or physically incapacitated for the performance of his usual

New Jersey Division of Pensions and Benefits 263 April 3, 2013

State House Commission Judicial Retirement System of New Jersey

Re: Actuary’s Certification Letter Members of the Commission: An actuarial valuation of the Judicial Retirement System is performed annually to measure the ongoing costs of the System and the progress towards the funding goals of the System over time. In general, the financial goals of the Judicial Retirement System are a pattern of contributions, which is sufficient to cover the normal cost of the System plus the contribution towards the unfunded accrued liability. In accordance with the New Jersey statutes, employers are required to make two contributions to the System, a normal contribution and an accrued liability contribution. The normal contribution for basic allowances and cost of living adjustments (COLA’s) is defined under the Projected Unit Credit funding method as the present value of the benefits accruing during the current year. Prior to the July 1, 2010 valuation, the unfunded accrued liability contribution for basic allowances and COLA’s was determined as a level percentage of pay required to amortize the unfunded accrued liability over 30 years in annual payments increasing by 4.0% per year. The funding reform provisions of Chapter 78, P.L.2011 changed the methodology used to amortize the unfunded accrued liability. Beginning with the July 1, 2010 actuarial valuation, the accrued liability contribution shall be computed so that if the contribution is paid annually in level dollars, it will amortize the unfunded accrued liability over an open 30 year period. Beginning with the July 1, 2019 actuarial valuation, the accrued liability contribution shall be computed so that if the contribution is paid annually in level dollars it will amortize the unfunded accrued liability over a closed 30 year period (i.e., for each subsequent actuarial valuation, the amortization period shall decrease by one year). Beginning with the July 1, 2029 actuarial valuation when the remaining amortization period reaches 20 years, any increase or decrease in the unfunded accrued liability as a result of actuarial losses or gains for subsequent valuation years shall serve to increase or decrease, respectively, the amortization period for the unfunded accrued liability, unless an increase in the amortization period will cause it to exceed 20 years. If an increase in the amortization period as a result of actuarial losses for a valuation year would exceed 20 years, the accrued liability contribution shall be computed for the valuation year using a 20 year amortization period. The valuation reflects the funding reform provisions of Chapter 1, P.L.2010. Chapter 1, P.L.2010 allows the State Treasurer to phase in to the full recommended pension contribution. The State would be in compliance with its funding requirement provided the State makes a payment of at least 1/7th of the full contribution, as computed by the actuaries, in the State fiscal year commencing July 1, 2011 and makes a payment in each subsequent fiscal year that increases by at least an additional 1/7th until payment of the full contribution is made in the seventh fiscal year and thereafter. The valuation reflects the final State contribution under Chapter 1, P.L.2010 for fiscal year 2012, which allowed the State Treasurer to reduce the State normal and accrued liability contributions for fiscal year 2012 of $38,352,572 to $5,479,000. In addition, the fiscal year 2013 recommended State pension contribution of $40,751,804 has been reduced to $11,643,372 and has been recognized as a receivable contribution for purposes of this valuation. This amount may be subject to change per the requirements of the State’s fiscal year 2013 spending plan. A contribution of $44,682,385 is recommended for the fiscal year beginning July 1, 2013. This is

264 New Jersey Division of Pensions and Benefits comprised of an unfunded accrued liability payment of $27,716,084 and a normal contribution of $16,966,301. However, the provisions of Chapter 1, P.L.2010 allows the State Treasurer to reduce the recommended pension contribution for fiscal year 2014 to no less than 3/7th of the recommended pension contribution. Accordingly, the Chapter 1, P.L. 2010 minimum required pension contribution is $19,149,594. This is comprised of an unfunded accrued liability payment of $11,878,322 and a normal contribution of $7,271,272. This amount may be subject to change per the requirements of the State’s fiscal year 2014 spending plan. The underlying demographic data is maintained and provided by the New Jersey Division of Pensions and Benefits. The data is analyzed by Buck Consultants for internal completeness and consistency and compared with the prior valuation data to again ensure consistency. As required under Chapter 140, P.L.1973, experience studies are performed once in every three year period. The valuation was prepared on the basis of the demographic assumptions that were determined from the July 1, 2008 – June 30, 2011 Experience Study and approved by the State House Commission. The Treasurer has recommended a change in the economic assumptions used for the valuation. The rate of investment return has been revised from 7.95% per annum to 7.90% per annum. The assumed future salary increases have been revised to be 2.50% per annum for fiscal year ending 2012 through fiscal year ending 2021 and 3.50% per annum for fiscal years ending 2022 and thereafter. These assumptions will remain in effect for valuation purposes until such time the State House Commission or the Treasurer recommends revised assumptions. The valuation cost method used is the projected unit credit method. This method essentially funds the System’s benefits accrued to the valuation date. Experience gains and losses are recognized in future accrued liability contributions. The asset valuation method used was a five-year average of market values with write-up. This method takes into account appreciation (depreciation) in investments in order to smooth asset values by averaging the excess of the actual over the expected income, on a market value basis, over a five-year period. The valuation does not take into account any changes in U.S. equity prices and bond yields that have occurred after the valuation date. Taking these into account may significantly change the market and actuarial value of assets shown. The effect of these events on any funded ratios shown, and on Retirement System calculations, is not known. Retirement System funding and financial accounting rules generally prohibit reflection of changes in assets and underlying economic conditions that occur after the valuation date. The assumptions used to prepare the information required by Statements No. 25, No. 27 and No. 50 of the Governmental Accounting Standards Board (GASB) were the same as those used for funding purposes. In our opinion, the attached schedules of valuation results fairly represent the status of the Judicial Retirement System and present an accurate view of historical data. The underlying assumptions and methods used for both funding and GASB disclosure purposes are consistent with the statutory specifications and represent a best estimate of the aggregate future experience of the System. The following supporting schedules in the Actuarial Section were prepared by Buck Consultants: • Summary of Actuarial Assumptions and Methods • Schedule of Retired Members and Beneficiaries Added To and Removed From Rolls • Schedule of Active Member Valuation Data • Solvency Test • Analysis of Past Financial Experience Reconciliation of Employer Contribution Rates • Summary of the Benefit and Contribution Provisions as Interpreted for Valuation Purposes In addition, Buck Consultants prepared the “Schedule of Funding Progress” and the “Schedule of Employer Contributions” in the Financial Section.

New Jersey Division of Pensions and Benefits 265 To the best of our knowledge, this information is complete and accurate. The valuation was performed by, and under the supervision of, independent qualified actuaries who are members of the American Academy of Actuaries with experience in performing valuations for public retirement systems. The valuation was prepared in accordance with the principles of practice prescribed by the Actuarial Standards Board and generally accepted actuarial procedures and methods. The calculations are based on the current provisions of the Retirement System, and on actuarial assumptions that are individually and in the aggregate internally consistent and reasonable based on the actual experience of the Retirement System. Respectfully submitted, Buck Consultants

Janet H. Cranna, M.A.A.A., F.S.A., E.A., F.C.A., M.S.P.P.A. Principal, Consulting Actuary

266 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS JUDICIAL RETIREMENT SYSTEM

SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS

Section 31 of Chapter 140, P.L.1973 of the New Jersey Statutes provides that once in every three-year period the actuary shall examine in detail the demographic experience of the members and beneficiaries of the Judicial Retirement System to assure that the tables used for determining expected liabilities are consistent with recent experience. The demographic assumptions used for the July 1, 2012 actuarial valuation of the Judicial Retirement System were based on the results of the experience study, which covered the period from July 1, 2008 to June 30, 2011, which were approved by the State House Commission, and the revised economic assumptions, which were recommended by the Treasurer. An outline of the actuarial assumptions and methods used for the July 1, 2012 valuation is as follows: Valuation Interest Rate: 7.90% per annum, compounded annually. COLA: No future COLA is assumed. Salary Increases: Salaries are assumed to increase by 2.50% per year for fiscal year ending 2012 through fiscal year ending 2021 and 3.50% per year for fiscal years ending 2022 and thereafter. Separations From Service: Representative mortality and disability rates are as follows:

Lives per Thousand Death Age Male Female Disability 30 0.38 0.22 0.22 35 0.44 0.35 0.26 40 0.77 0.55 0.33 45 1.08 0.85 0.64 50 1.51 1.33 1.14 55 2.14 2.02 1.97 60 3.62 3.48 3.26 65 6.75 6.66 4.73

* RP-2000 Combined Healthy Male and RP-2000 Combined Healthy Female Mortality Tables (set back 5 years for males and 3 years for females) projected on a generational basis from the base year of 2012 using Projection Scale AA. The above rates are unadjusted for Projection Scale AA.

New Jersey Division of Pensions and Benefits 267 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS JUDICIAL RETIREMENT SYSTEM

SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS, Continued

Deaths After Retirement: RP-2000 Combined Healthy Mortality Tables (set back 5 years for males and 3 years for females) for service retirement and beneficiaries of former members projected on a generational basis from the base year of 2012 using Projection Scale AA. The RP-2000 Disability Mortality Tables (set forward 2 years for males and females) are used to value disabled retirees. Representative values of the annual rates of mortality unadjusted for Projection Scale AA are as follows:

Lives Per Thousand Retired Members and Beneficiaries of Deceased Members Disabled Members Age Males Females Males Females 55 2.14 2.02 38.03 18.65 60 3.62 3.48 44.98 24.08 65 6.75 6.66 54.45 31.32 70 12.74 12.16 69.41 42.85 75 22.21 20.66 92.15 59.54 80 37.83 34.11 121.88 82.30 85 64.37 56.29 155.23 114.51 90 110.76 96.34 216.61 159.92

Retirement:It was assumed that the probability of retirement at age 65 for those judges who have 12 or more years of judicial service at age 65 is at 25% per year. In addition, retirement for members who have attained age 60 with 20 years of judicial service or attained age 65 with 15 years judicial service is at 30% at age 60, 25% at age 65 and 20% for all other ages between ages 60 and 70. At age 70, all remaining active members are assumed to retire.

Valuation Method: Projected Unit Credit Method. This method essentially funds the System’s benefits accrued to the valuation date. Experience gains and losses are recognized in future accrued liability contributions. In accordance with Chapter 78, P.L.2011, beginning with the July 1, 2010 actuarial valuation, the accrued liability contribution shall be computed so that if the contribution is paid annually in level dollars, it will amortize the unfunded accrued liability over an open 30 year period. Beginning with the July 1, 2019 actuarial valuation, the accrued liability contribution shall be computed so that if the contribution is paid annually in level dollars, it will amortize the unfunded accrued liability over a closed 30 year period (i.e., for each subsequent actuarial valuation the amortization period shall decrease by one year.) Beginning with the July 1, 2029 actuarial valuation, when the remaining amortization period reaches 20 years, any increase or decrease in the unfunded accrued liability as a result of actuarial losses or gains for subsequent valuation years shall serve to increase or decrease, respectively, the amortization period for the unfunded accrued liability, unless an increase in the amortization period will cause it to exceed 20 years. If an increase in the amortization period as a result of actuarial losses for a valuation year would exceed 20 years, the accrued liability contribution shall be computed for the valuation year using a 20 year amortization period.

Chapter 78, P.L. 2011 increased the member contributions by 9% of salary, phased-in over a seven year period. Based on discussions with the Division of Pensions and Benefits, the increase in member contributions due to Chapter 78, P.L. 2011 shall not reduce the State’s normal cost contribution.

268 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS JUDICIAL RETIREMENT SYSTEM

SCHEDULE OF RETIRED MEMBERS AND BENEFICIARIES ADDED TO AND REMOVED FROM ROLLS

Added to Rolls Removed From Rolls Rolls at End of Year % Increase Average Valuation Annual Annual Annual** in Annual Annual Date Number Allowance Number Allowance Number* Allowance Allowance Allowance 7/1/12 34 $3,723,186 21 $1,423,636 535 $46,167,613 5.24% $86,295 7/1/11 41 3,699,618 24 1,442,965 522 43,868,063 6.35 84,038 7/1/10 47 4,424,782 24 1,659,228 505 41,250,479 7.22 81,684 7/1/09 38 3,502,225 21 1,605,240 482 38,472,184 7.91 79,818 7/1/08 38 3,186,664 24 1,700,472 465 35,650,855 5.20 76,669 7/1/07 27 2,361,097 13 790,746 451 33,889,262 7.52 75,142

SCHEDULE OF ACTIVE MEMBER VALUATION DATA Valuation Number of Annual Average % Increase(Decrease) in Date Active Members Compensation Compensation Average Compensation 7/1/12 407 $67,497,660 $165,842 (0.16)% 7/1/11 406 67,437,125 166,101 0.01 7/1/10 432 71,746,413 166,080 (0.07) 7/1/09 422 70,133,372 166,193 5.17 7/1/08 425 67,159,516 158,022 5.36 7/1/07 421 63,144,685 149,987 5.60

SOLVENCY TEST

Percentage of Accrued Liabilities Covered by Accrued Liabilities for Net Assets Available

(1) Aggregate (2) (3) Net Assets Valuation Member Current Retirees Active & Inactive Available for Date Contributions & Beneficiaries Members Benefits* (1) (2) (3) 7/1/12 $19,799,227 $417,423,315 $167,958,092 $290,191,842 100.00% 64.78% 0.00% 7/1/11 18,353,365 394,760,527 172,586,895 310,724,782 100.00 74.06 0.00 7/1/10 17,967,938 354,390,110 182,182,355 329,030,387 100.00 87.77 0.00 7/1/09 17,288,107 364,446,307 212,308,961 355,522,646 100.00 92.81 0.00 7/1/08 16,312,046 336,317,176 200,655,425 383,958,713 100.00 100.00 15.61 7/1/07 15,917,212 319,653,218 189,399,900 391,321,939 100.00 100.00 29.44

*Actuarial value including receivable amounts.

New Jersey Division of Pensions and Benefits 269 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS JUDICIAL RETIREMENT SYSTEM

ANALYSIS OF PAST FINANCIAL EXPERIENCE RECONCILIATION OF EMPLOYER CONTRIBUTION RATES

July 1, July 1, July 1, July 1, July 1, July 1, Valuation Year 2012 2011 2010 2009 2008 2007 Effective Prior Year Contribution Rate 60.43%** 53.45%** 49.41%** 42.97%** 41.32%** 38.26%** Net Change Due to: Current New Entrants 1.73 0.20 2.62 1.52 1.47 0.52 Excess Salary Increases (0.97) (1.37) (1.38) (0.15) (0.02) 0.09 Assumption/Method Changes 0.61 (3.87) 0.00 0.32 0.00 0.00 COLA N/A (0.19) (0.46) 0.29 (0.24) 0.25 Retiree Mortality 0.12 0.04 (0.04) 0.01 0.05 0.18 Active and Other Experience (1.05) 6.37 (1.46) 0.02 (2.40) 0.71 Investment Loss/(Gain) 1.52 1.37 1.43 2.03 0.70 0.16 Appropriation Act* 3.81 4.43 2.94 2.40 2.09 1.15 Chapter 78, P.L. 2011 N/A N/A 0.40 N/A N/A N/A Actual Contribution Rate: • Prior to Reflecting Chapter 1, P.L. 2010 66.20%** 60.43%** 53.46%** 49.41%** 42.97%** 41.32%** • Reflecting Chapter 1, P.L. 2010 28.37%** 17.27%** 7.64%** N/A N/A N/A

* Changes in 2011 and 2012 are due to the provisions of Chapter 1, P.L. 2010.

** Excludes contribution rates of 1.29% for 2012, 1.34% for 2011, 1.34% for 2010, 1.23% for 2009, 1.65% for 2008 and 1.14% for 2007 for premiums payable to the Non-Contributory Group Insurance Premium Fund.

270 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS JUDICIAL RETIREMENT SYSTEM

SUMMARY OF THE BENEFIT AND CONTRIBUTION PROVISIONS AS INTERPRETED FOR VALUATION PURPOSES

1. ELIGIBILITY FOR MEMBERSHIP years of judicial service and 15 years in the Chief Justice and associate justices of the aggregate to public service. Benefit is an annu- Supreme Court, judges of the Superior Court and al retirement allowance equal to 2% of final tax courts of the State of New Jersey. salary for each year of public service up to 25 years plus 1% of final salary for each year in 2. DEFINITIONS excess of 25 years. Plan Year: The 12-month period beginning on July d. Age 60 while serving as a judge. Benefit is an 1 and ending on June 30. annual retirement allowance equal to 2% of Service: A year is credited for each year of service final salary for each year of judicial service up as a public employee in the State of New Jersey. to 25 years plus 1% for each year in excess of Any service, for which member did not receive 25 years. annual salary of at least $500, shall be excluded. Early Retirement: Prior to age 60 while serving as Final Salary: Annual salary received by the mem- a judge, 5 consecutive years of judicial service and ber at the time of retirement or other termination of 25 or more years in the aggregate of public service. service. (Effective June 30, 1996, Chapter 113, P.L. Benefit is an annual retirement allowance equal to 1997 provided that the amount of compensation 2% of final salary for each year of public service up used for employer and member contributions and to 25 years plus 1% of final salary for each year of benefits under the program cannot exceed the public service in excess of 25 years, actuarially compensation limitation of Section 401(a)(17) of reduced for commencement prior to age 60. the Internal Revenue Code). Vested Termination: Termination of service prior Accumulated Deductions: The sum of all to age 60, with 5 consecutive years of judicial serv- amounts deducted from the compensation of a ice and 10 years in the aggregate of public service. member or contributed by him or on his behalf. Benefit is a refund of accumulated deductions, or a deferred life annuity beginning at age 60 equal to Retirement Allowance: Pension derived from con- 2% of final salary for each year of public service up tributions of the State plus the annuity derived from to 25 years, plus 1% for service in excess of 25 employee contributions. years. 3. BENEFITS Death Benefits: Service Retirement: BEFORE RETIREMENT: Death of an active mem- a. Mandatory retirement at age 70. Voluntary ber of the plan. Benefit is equal to: retirement prior to age 70 as follows: a. Lump sum payment equal to 1-1/2 times final (1) Age 70 and 10 years of judicial service; salary, plus (2) Age 65 and 15 years of judicial service; or b. Spousal life annuity of 25% of final salary (3) Age 60 and 20 years of judicial service. payable until spouse’s remarriage plus 10% (15%) to one (two or more) dependent child Benefit is an annual retirement allowance (children). If there is no surviving spouse, or equal to 75% of final salary. upon death or remarriage, a total of 15% (20%, b. Age 65 while serving as a judge, 5 consecutive 30%) of final salary payable to one (two, three years of judicial service and 15 years in the or more) dependent child (children). If there is aggregate of public service; or no surviving spouse (or dependent children), Age 60 while serving as a judge, 5 consecutive 20% or 30% of final salary to one or two years of judicial service and 20 years in the dependent parents. aggregate of public service. AFTER RETIREMENT: Death of a retired member Benefit is an annual retirement allowance of the plan. Benefit is equal to: equal to 50% of final salary. a. Lump sum of 25% of final salary for a member c. Age 60 while serving as a judge, 5 consecutive retired under normal or early retirement. If a member were receiving a disability benefit, a

New Jersey Division of Pensions and Benefits 271 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS JUDICIAL RETIREMENT SYSTEM

SUMMARY OF THE BENEFIT AND CONTRIBUTION PROVISIONS, Continued

lump sum 1-1/2 times final salary if death (a) For members enrolled prior to January 1, 1996: occurred before the member attained age 60 (1) Member Contributions of 9% (phased-in and ¼ times final salary if death occurred after over a period of seven years beginning age 60, plus October 2011) of the salary for that posi- b. Spousal life annuity of 25% of final salary tion on January 18, 1982. payable until spouse’s remarriage plus 10% (2) Member Contributions increase from 3% to (15%) to one (two or more) dependent child 12% (phased-in over a period of seven (children). If there is no surviving spouse, or years beginning October 2011) of the dif- upon death or remarriage, a total of 15% (20%, ference between current salary and salary 30%) of final salary payable to one (two, three for that position on January 18, 1982. or more) dependent child (children). (b) For members enrolled on or after January 1, Disability Retirement: Physically or otherwise 1996, Member Contributions increase from 3% incapacitated for a full and efficient service to State to 12% of full salary phased-in over a period in his judicial capacity and such incapacity is likely of seven years beginning October 2011. to be permanent. Benefit is an annual retirement allowance of 75% of final salary. 4. MEMBER CONTRIBUTIONS Any member enrolled prior to January 1, 1996 contributes 3% of the difference between current salary and salary for that position on January 18, 1982. Members enrolled on and after January 1, 1996 contribute 3% of their full salary. Chapter 78, P.L. 2011 increased Member Contributions by 9% of salary phased-in over a period of seven years beginning October 2011. (The additional 9% of salary will be fully phased-in in July 2017.)

272 New Jersey Division of Pensions and Benefits April 3, 2013 Commission Consolidated Police and Firemen’s Pension Fund of New Jersey

Re: Actuary’s Certification Letter

Members of the Commission:

An actuarial valuation of the Consolidated Police and Firemen’s Pension Fund is performed annually to measure the ongoing costs of the Fund and the progress towards the funding goals of the Fund over time. Since the Pension Fund is closed to new entrants and there are no active participants, the financial goals of the Consolidated Police and Firemen’s Pension Fund are to ensure that the combination of future State appropriations and current Trust assets, both projected forward with expected investment earnings, are sufficient to provide for all future benefit payments.

The unfunded accrued liability for basic allowances was initially determined as of June 30, 1990 and was to be amortized over a nine-year period. However, the provisions of Chapter 115, P.L. 1997 of the Pension Security Legislation permitted the State to pay off the unfunded accrued liabilities from the proceeds of pension obligation bonds.

A contribution of $864,041 is recommended for the fiscal year beginning July 1, 2013. The normal cost contribution is $0 and the unfunded accrued liability contribution is $864,041. As noted above, the latest unfunded accrued liability payment schedule required the amortization of any plan gains or losses over the remainder of the nine-year period that began on June 30, 1991. Without additional guidance, we have assumed the immediate payment of any unfunded accrued liability.

The recommended contribution for the fiscal year beginning July 1, 2013 was based on the method described above using an interest rate of 2.00% per annum. In accordance with actuarial standards of practice, the mortality assumption for service retirements and beneficiaries was updated to the RP-2000 Combined Healthy Mortality Tables projected on a generational basis using Projection Scale AA. The asset valuation method used was a five-year average of market values with write- up. This method takes into account appreciation (depreciation) in investments in order to smooth asset values by averaging the excess of the actual over the expected income, on a market value basis, over a five-year period.

The valuation does not take into account any changes in U.S. equity prices and bond yields that have occurred after the valuation date. Taking these into account may significantly change the market and actuarial value of assets shown. The effect of these events on any funded ratios shown, and on Fund calculations, is not known. The Fund’s funding and financial accounting rules generally prohibit reflection of changes in assets and underlying economic conditions that occur after the valuation date.

In our opinion, the attached schedules of valuation results fairly represent the status of the Consolidated Police and Firemen’s Pension Fund and present an accurate view of historical data.

New Jersey Division of Pensions and Benefits 273 The underlying assumptions and methods used for both funding and GASB disclosure purposes are consistent with the statutory specifications and represent a best estimate of the aggregate future experience of the Fund.

The following supporting schedules in the Actuarial Section were prepared by Buck Consultants:

• Summary of Actuarial Assumptions and Methods

• Schedule of Retired Members and Beneficiaries Added To and Removed From Rolls

• Schedule of Active Member Valuation Data

• Solvency Test

• Analysis of Past Financial Experience Reconciliation of Unfunded Accrued Liability/(Surplus)

• Summary of the Benefit and Contribution Provisions as Interpreted for Valuation Purposes

In addition, Buck Consultants prepared the “Schedule of Funding Progress” and the “Schedule of Employer Contributions” in the Financial Section.

The valuation was prepared in accordance with the principles of practice prescribed by the Actuarial Standards Board and generally accepted actuarial procedures and methods. The calculations are based on the current provisions of the Fund, and on actuarial assumptions that are individually and in the aggregate internally consistent and reasonable based on the actual experience of the Fund.

Respectfully submitted,

Buck Consultants

Janet H. Cranna, M.A.A.A., F.S.A., E.A., F.C.A., M.S.P.P.A.

Principal, Consulting Actuary

274 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS CONSOLIDATED POLICE AND FIREMEN’S PENSION FUND

SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS

An outline of the actuarial assumptions and methods used for the July 1, 2012 valuation is as follows: Valuation Interest Rate: 2.00% per annum, compounded annually for development of costs. Deaths After Retirement: RP-2000 Combined Healthy Mortality Tables for service retirements and beneficiaries projected on a generational basis from the base year of 2012 using Projection Scale AA. Special mortality tables are used for the period after disability retirement with no provisions made for mortality improvement after the valuation date. Representative values of the assumed annual rates of mortality unadjusted for Projection Scale AA for current retirees are as follows:

Service Pensioners and Beneficiaries Disability Age Men Women Pensioners 60 0.675% 0.506% 2.45% 65 1.274 0.971 3.57 70 2.221 1.674 5.32 75 3.783 2.811 8.02 80 6.437 4.588 12.11 85 11.076 7.745 18.20 90 18.341 13.168 26.88

Marriage: Males are assumed to be 4 years older than females, no assumption was made as to children. For those participants with listed beneficiaries, the beneficiary allowance was assumed to be the greater of twice the amount contained in the record or the minimum benefit of $4,500/yr. (The information contained in the record has not been updated for the change from 25% to 50% payment to the survivor.) For those participants without listed beneficiaries, 65% were assumed to be married and the beneficiary amount was assumed to be the minimum benefit payable ($4,500/yr.). Actuarial Method: The unfunded accrued liability was measured as of June 30, 1990 and the accrued liability contribution rate was then determined such that the unfunded accrued liability was to be amortized over a period of nine years with contributions expected to remain constant. In determining the unfunded accrued liability and the contribution rate, the actuarial value of assets as of June 30, 1990 was based upon 100% of the market value of fund assets. For subsequent actuarial valuations, the actuarial value of assets is adjusted to reflect actual contributions and benefit payments, an assumed rate of return on the previous year’s assets and current year’s cash flow at an annual rate of 2.00% with an adjustment to reflect 20% of the difference between the resulting value and the actual market value of Fund assets. In developing the unfunded accrued liability contribution rate as of June 30, 1991 and subsequent years, the contribution rate is adjusted to amortize any gains or losses over the remainder of the nine-year period. (Without additional guidance, we have assumed that the unfunded accrued liability determined as of June 30, 2012 will be amortized over one year.)

New Jersey Division of Pensions and Benefits 275 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS CONSOLIDATED POLICE AND FIREMEN’S PENSION FUND

SCHEDULE OF RETIRED MEMBERS AND BENEFICIARIES ADDED TO AND REMOVED FROM ROLLS

Added to Rolls Removed From Rolls Rolls at End of Year % Increase (Decrease) Average Valuation Annual Annual Annual in Annual Annual Date Number Allowance Number Allowance Number Allowance* Allowance Allowance 7/1/12 3 $46,595 72 $478,997 241 $1,717,152 (20.12)% $7,125 7/1/11 1 6,861 87 572,894 310 2,149,554 (20.84) 6,934 7/1/10 0 0 50 356,230 396 2,715,587 (11.60) 6,858 7/1/09 8 60,806 94 653,683 446 3,071,817 (16.18) 6,887 7/1/08 5 42,453 93 695,563 532 3,664,694 (15.13) 6,889 7/1/07 5 35,530 104 612,861 620 4,317,804 (11.79) 6,964

*The benefit amounts shown are the annualized benefits as of the valuation date and are not the actual benefits paid during the fiscal year.

SCHEDULE OF ACTIVE MEMBER VALUATION DATA There have been no active participants in the Fund since July 1, 1992.

SOLVENCY TEST

Percentage of Accrued Liabilities Covered by Net Accrued Liabilities for Assets Available

(1) Aggregate (2) (3) Net Assets Valuation Member Current Retirees Active & Inactive Available for Date Contributions & Beneficiaries Members Benefits* (1) (2) (3) 7/1/12 $0 $8,026,421 $0 $7,179,322 N/A 89.45% N/A 7/1/11 0 9,179,981 0 8,300,684 N/A 90.42 N/A 7/1/10 0 11,824,904 0 10,632,228 N/A 89.91 N/A 7/1/09 0 14,024,132 0 13,879,949 N/A 98.97 N/A 7/1/08 0 17,319,488 0 16,962,382 N/A 97.94 N/A 7/1/07 0 21,090,186 0 19,858,423 N/A 94.16 N/A

*Actuarial value including receivable amount.

276 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS CONSOLIDATED POLICE AND FIREMEN’S PENSION FUND

ANALYSIS OF PAST FINANCIAL EXPERIENCE RECONCILIATION OF UNFUNDED ACCRUED LIABILITY/(SURPLUS)

July 1, July 1, July 1, July 1, July 1, July 1, Valuation Year 2012 2011 2010 2009 2008 2007 Prior Year Unfunded/(Surplus) $879,297 $1,192,676 $144,183 $357,106 $1,231,763 $511,937 Net Change Due to: Interest in Prior Year Unfunded/(Surplus) $17,586 $23,854 $2,884 $7,142 $24,635 $10,239 Investment Loss/(Gain) 355,895 408,804 467,873 532,716 630,900 809,913 Retiree Experience (515,459) (572,247) 206,204 (388,781) (273,794) 421,850 State Appropriations (896,883) (173,790) 0 (364,000) (1,256,398) (522,176) Appropriations Act N/A N/A 371,532 N/A N/A N/A Assumption, Benefit, or Method Changes 1,006,663 N/A N/A N/A N/A N/A Actual Unfunded/(Surplus) $847,099 $879,297 $1,192,676 $144,183 $357,106 $1,231,763

New Jersey Division of Pensions and Benefits 277 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS CONSOLIDATED POLICE AND FIREMEN’S PENSION FUND

SUMMARY OF THE BENEFIT AND CONTRIBUTION PROVISIONS AS INTERPRETED FOR VALUATION PURPOSES

1. ELIGIBILITY FOR MEMBERSHIP for an employee member. Benefit is life annuity Member of a municipal police department, munici- equal to 60% of final compensation, plus 1% of final pal paid or part-paid fire department or county compensation for years of service in excess of 25. police department, or a paid or part-paid fire Death benefit: department of a fire district located in a township WHILE ON DUTY: Immediate life annuity equal to who has contributed to this pension fund; and who 70% of average salary payable to the spouse. If is not covered by the Police and Firemen’s there is no spouse or if the spouse dies or remar- Retirement System which became effective on July ries, 20% of final compensation will be payable to 1, 1944. one surviving child and 35% (50%) of final compen- Active Member: Any member who is a policeman, sation will be payable, to two (three) surviving chil- fireman, detective, lineman, driver of police van, fire dren. If there is no surviving spouse or child, 25% alarm operator, or inspector of combustibles and (40%) of final compensation will be payable to one who is subject to call for active service as such. (two) surviving dependent parent(s). The minimum Employee Member: Any member who is not sub- spousal annuity is $4,500 per annum. ject to active service or duty. WHILE NOT ON DUTY AFTER RETIREMENT: Life 2. DEFINITIONS annuity equal to 50% of the member’s average salary payable to the spouse, plus 15% (25%) to Plan Year: The 12-month period beginning on July one (two or more ) surviving child (children). If there 1 and ending on June 30. is no surviving spouse or if the surviving spouse Service: Service rendered while a member as dies or remarries, 20% (35%, 50%) of the mem- described above. ber’s average salary to one (two, three or more) Compensation: Base salary; not including individ- surviving child (children). In the event that there is ual salary adjustments which are granted primarily no surviving spouse or child, 25% (40%) of the in anticipation of retirement or additional remunera- member’s average salary will be payable to one tion for performing temporary duties beyond the (two) dependent parent(s). The minimum spousal regular work day. (Effective June 30, 1996 Chapter annuity is $4,500 per annum. 113, P.L. 1997 provided that the amount of com- Ordinary Disability Retirement: Totally and per- pensation used for employer and member contribu- manently incapacitated from service for any cause tions and benefits under the program cannot other than as a direct result of a traumatic event exceed the compensation limitation of Section occurring during the performance of duty. Benefit is 401(a)(17) of the Internal Revenue Code.) an immediate life annuity equal to 1/2 of average Final Compensation: Compensation received salary. during the last 12 months of service preceding Accidental Disability Retirement: Totally and per- retirement or termination of service. manently incapacitated as a direct result of a trau- Average Salary: Salary averaged over the last matic event occurring while performing regular or three years prior to retirement or other termination assigned duties. Benefit is an immediate life annu- of service. ity equal to 2/3 of average salary. 3. BENEFITS Service Retirement: Mandatory retirement at age 65 with 25 years of service (a municipality may retain the Chief of Police until age 70). Voluntary retirement after 25 years of service for an active member and after age 60 with 25 years of service

278 New Jersey Division of Pensions and Benefits April 3, 2013 Commission Prison Officers’ Pension Fund of New Jersey

Re: Actuary’s Certification Letter Members of the Commission: An actuarial valuation of the Prison Officers’ Pension Fund is performed annually to measure the ongoing costs of the Fund and the progress towards the funding goals of the Fund over time. Since the pension fund is closed to new entrants and there are no active participants, the financial goals of the Prison Officers’ Pension Fund are to ensure that the combination of future State appropriations and current Trust assets, both projected forward with expected investment earnings, are sufficient to provide for all future benefit payments. The unfunded accrued liability for basic allowances was initially determined as of July 1, 1989 and was to be amortized over the 14-year period beginning July 1, 1989 and ending on July 1, 2002. However, the provisions of Chapter 115, P.L. 1997 of the Pension Security Legislation permitted the State to pay off the unfunded accrued liability from the proceeds of pension obligation bonds. The net effect of this legislation and plan experience was that no contributions were required for the fiscal year beginning July 1, 2013. (There were no required unfunded accrued liability payments due to the fact that a net surplus existed as of July 1, 2012.) The underlying demographic data is maintained and provided by the New Jersey Division of Pensions and Benefits. The data is analyzed by Buck Consultants for internal completeness and consistency and compared with the prior valuation data to again ensure consistency. The recommended contribution for the fiscal year beginning July 1, 2013 was based on the method described above using an interest rate of 5.00%. In accordance with actuarial standards of practice, the mortality assumption for service retirements and beneficiaries was updated to the RP- 2000 Combined Healthy Mortality Tables projected on a generational basis using Projection Scale AA. Assets are valued at book value, which is equivalent to market value. The valuation does not take into account any changes in U.S. equity prices and bond yields that have occurred after the valuation date. Taking these into account may significantly change the market value of assets shown. The effect of these events on any funded ratios shown, and on Fund calculations, is not known. The Fund’s funding and financial accounting rules generally prohibit reflection of changes in assets and underlying economic conditions that occur after the valuation date. The assumptions used to prepare the information required by Statements No. 25, No. 27 and No. 50 of the Governmental Accounting Standards Board (GASB) were the same as those used for funding purposes. In our opinion, the attached schedules of valuation results fairly represent the status of the Prison Officers’ Pension Fund and present an accurate view of historical data. The underlying assumptions and methods used for both funding and GASB disclosure purposes are consistent with the statutory specifications and represent a best estimate of the aggregate future experience of the Fund. The following supporting schedules in the Actuarial Section were prepared by Buck Consultants: • Summary of Actuarial Assumptions and Methods • Schedule of Retired Members and Beneficiaries Added To and Removed From Rolls

New Jersey Division of Pensions and Benefits 279 • Schedule of Active Member Valuation Data • Solvency Test • Analysis of Past Financial Experience Reconciliation of Unfunded Accrued Liability/(Surplus) • Summary of the Benefit and Contribution Provisions as Interpreted for Valuation Purposes In addition, Buck Consultants prepared the “Schedule of Funding Progress” and the “Schedule of Employer Contributions” in the Financial Section. To the best of our knowledge, this information is complete and accurate. The valuation was performed by, and under the supervision of, independent qualified actuaries who are members of the American Academy of Actuaries with experience in performing valuations for public retirement systems. The valuation was prepared in accordance with the principles of practice prescribed by the Actuarial Standards Board and generally accepted actuarial procedures and methods. The calculations are based on the current provisions of the Fund, and on actuarial assumptions that are individually and in the aggregate internally consistent and reasonable based on the actual experience of the Fund. Respectfully submitted, Buck Consultants

Janet H. Cranna, M.A.A.A., F.S.A., E.A., F.C.A., M.S.P.P.A. Principal, Consulting Actuary

280 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS PRISON OFFICERS’ PENSION FUND

SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS

An outline of the actuarial assumptions and methods used for the July 1, 2012 valuation is as follows: Valuation Interest Rate: 5.0% per annum, compounded annually. Deaths After Retirement: RP-2000 Combined Healthy Mortality Tables for service retirements and beneficiaries projected on a generational basis from the base year of 2012 using Projection Scale AA. Special mortality tables are used for the period after disability retirement with no provisions made for mortality improvement after the valuation date for disability retirements. Representative values of the assumed annual rates of mortality unadjusted for Projection Scale AA for current retirees are as follows:

Service Retirement and Beneficiaries Disability Age Men Women Retirement 60 0.675% 0.506% 2.722% 65 1.274 0.971 3.969 70 2.221 1.674 5.909 75 3.783 2.811 8.906 80 6.437 4.588 13.458 85 11.076 7.745 20.220 90 18.341 13.168 29.873

Marriage: Husbands are assumed to be 3 years older than wives. Valuation Method: The unfunded accrued liability (the difference between the present value of benefits and the valuation assets) was determined as of July 1, 1988. This liability was amortized over the 14-year period beginning July 1, 1989, and ending on July 1, 2002. Each year the amortization payments were adjusted to reflect any experience gains or losses that occurred during the previous plan year. All gains and losses were amortized over the remaining original amortization period. (Without any guidance, we have assumed that any unfunded accrued liability that develops after the July 1, 2001 valuation will be amortized over 1 year.) Asset Valuation Method: Assets are valued at book value, which is equivalent to market value.

New Jersey Division of Pensions and Benefits 281 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS PRISON OFFICERS’ PENSION FUND

SCHEDULE OF RETIRED MEMBERS AND BENEFICIARIES ADDED TO AND REMOVED FROM ROLLS

Added to Rolls Removed From Rolls Rolls at End of Year % Increase (Decrease) Average Valuation Annual Annual Annual in Annual Annual Date Number Allowance Number Allowance Number Allowance* Allowance Allowance 7/1/12 3 $20,252 10 $76,496 135 $937,046 (5.66)% $6,941 7/1/11 2 11,391 9 66,709 142 993,290 (5.28) 6,995 7/1/10 3 10,962 9 52,842 149 1,048,608 (3.84) 7,038 7/1/09 4 19,345 16 90,358 155 1,090,488 (6.11) 7,035 7/1/08 5 20,466 14 74,921 167 1,161,501 (4.48) 6,955 7/1/07 4 32,822 12 114,796 176 1,215,956 (6.32) 6,909

*The benefit amounts shown are the annualized benefits as of the valuation date and are not the actual benefits paid during the fiscal year.

SCHEDULE OF ACTIVE MEMBER VALUATION DATA There have been no active participants in the Fund since July 1, 1994.

SOLVENCY TEST

Percentage of Accrued Liabilities Covered by Net Accrued Liabilities for Assets Available

(1) Aggregate (2) (3) Net Assets Valuation Member Current Retirees Active & Inactive Available for Date Contributions & Beneficiaries Members Benefits* (1) (2) (3) 7/1/12 $0 $5,395,505 $0 $9,044,236 N/A 100.00% N/A 7/1/11 0 5,096,792 0 9,997,650 N/A 100.00 N/A 7/1/10 0 5,635,024 0 11,018,367 N/A 100.00 N/A 7/1/09 0 6,136,441 0 11,986,919 N/A 100.00 N/A 7/1/08 0 6,789,017 0 12,890,441 N/A 100.00 N/A 7/1/07 0 7,378,386 0 13,499,361 N/A 100.00 N/A

*Market value including receivable amount.

282 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS PRISON OFFICERS’ PENSION FUND

ANALYSIS OF PAST FINANCIAL EXPERIENCE RECONCILIATION OF UNFUNDED ACCRUED LIABILITY/(SURPLUS)

July 1, July 1, July 1, July 1, July 1, July 1, Valuation Year 2012 2011 2010 2009 2008 2007 Prior Year Unfunded/(Surplus) $(4,900,858) $(5,383,343) $(5,850,478) $(6,101,424) $(6,120,975) $(5,778,423) Net Change Due to: Interest in Prior Year Unfunded/(Surplus) $(245,043) $(269,167) $(292,524) $(305,071) $(306,049) $(288,921) Investment Loss/(Gain) 473,239 492,481 520,553 419,571 97,600 (41,763) Retiree Experience 210,511 259,171 239,106 136,446 228,000 (11,868) Assumption/Method Changes 813,420 N/A N/A N/A N/A N/A Actual Unfunded/(Surplus) $(3,648,731) $(4,900,858) $(5,383,343) $(5,850,478) $(6,101,424) $(6,120,975)

New Jersey Division of Pensions and Benefits 283 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS PRISON OFFICERS’ PENSION FUND

SUMMARY OF THE BENEFIT AND CONTRIBUTION PROVISIONS AS INTERPRETED FOR VALUATION PURPOSES

1. ELIGIBILITY FOR MEMBERSHIP Termination with 10 or more years of service: Employees of State penal institutions, employed Benefit is a deferred life annuity equal to 2% of AFC prior to January 1, 1960 who did not transfer to the for service up to 30 years plus 1% for service over Police & Firemen’s Retirement System in accor- 30 years. dance with Chapter 205 of Public Law 1989. The Termination with less than 10 years of service: System no longer accepts new members. Refund of accumulated deductions. 2. DEFINITIONS Ordinary Disability Retirement: Permanent and Plan Year: The 12-month period beginning on July total disability for causes other than as a direct 1 and ending on June 30. result of a traumatic event occurring during the per- Service: A year is credited for each year an formance of regular or assigned duties. Benefit is employee is a member of the retirement system. an immediate life annuity equal to 1/2 of AFC. Average Final Compensation (AFC): Average annual compensation (or base salary) for 3 years of Accidental Disability Retirement: Permanent and Service immediately preceding retirement. total disabled as a direct result of a traumatic event (Effective June 30, 1996, Chapter 113, P.L. 1997 occurring while performing regular or assigned provided that the amount of compensation used for duties. Benefit is an immediate life annuity equal to employer and member contributions and benefits 2/3 of AFC. under the program cannot exceed the compensation limitation of Section 401(a)(17) of the Internal Death Benefits: Death of member of system. Revenue Code.) Spouse must be married to member prior to retire- Accumulated Deductions: The sum (without ment, or at least five years before member’s death. interest) of all required amounts deducted from the Benefit is an annuity equal to 25% of member’s compensation of a member or contributed by him AFC plus an additional 15% (25%) for one (two or or on his behalf. more) surviving dependent child (children). If there 3. BENEFITS is no spouse or if the spouse dies or remarries, 20% (35%, 50%) of AFC to one (two, three or Service Retirements: 25 years of service, or age 55 and 20 years of service. The benefit is a life more) surviving child (children). If there is no sur- annuity equal to the greater of (a), (b), and (c) viving spouse or children, 25% (40%) of AFC to below: one (two) dependent parent(s). The provision for a a. 2% of AFC up to 30 years of service plus 1% survivor annuity payable to dependent parents for each year in excess of 30 and prior to age does not apply in the death of a retired member of 65; the system. b. 50% of final pay; and Minimum benefits: Minimum spousal annuity is c. For member with 25 years of service, 2% of $1,600 per annum. If no other benefit is payable AFC up to 30 years of service plus 1% for each prior to retirement, the member’s beneficiary shall year in excess of 30. receive the accumulated deductibles. Vested Retirements: Eligible upon termination of employment. Benefits are summarized as follows:

284 New Jersey Division of Pensions and Benefits April 3, 2013 Council Supplemental Annuity Collective Trust of New Jersey

Re: Actuary’s Certification Letter Members of the Council: An actuarial valuation of the Supplemental Annuity Collective Trust is performed at least once in every three-year period to measure the ongoing costs of the Trust and the progress towards the funding goals of the Trust over time. The financial goals of the Supplemental Annuity Collective Trust are to ensure that current Trust assets are sufficient to provide for all future annuity payments. The most recent valuation was prepared as of June 30, 2012. The Supplemental Annuity Collective Trust of New Jersey was established under the provisions of Chapter 123, P.L. 1963, which was approved July 1, 1963. The act permits active members of the following retirement systems administered by the State of New Jersey to make voluntary additional contributions through their retirement systems to purchase either a variable or fixed annuity to supplement the benefits provided by their systems. Public Employees’ Retirement System Teachers’ Pension and Annuity Fund The Police and Firemen’s Retirement System Consolidated Police and Firemen’s Pension Fund Prison Officers’ Pension Fund State Police Retirement System Judicial Retirement System As of the July 1, 2012 valuation, only the variable annuity program was in operation. It was inau- gurated July 1, 1964. Chapter 123, P.L.1963 was amended June 6, 1965 by Chapter 90, P.L.1965, to permit eligible employees to enter into an agreement with their employers to reduce their salaries and purchase annuities on their behalf which will qualify for the tax sheltered treatment permitted under Section 403(b) of the Internal Revenue Code of 1954, as amended. The rules were revised in 1982 to permit contributions in the form of qualified voluntary employee contributions. These contributions are treated as IRA contributions for tax purposes. The underlying demographic data is maintained and provided by the New Jersey Division of Pensions and Benefits. The data is analyzed by Buck Consultants for internal completeness and consistency and compared with the prior valuation data to again ensure consistency. The Trust status as of the fiscal year beginning July 1, 2012 was based on the actuarial assumptions and methods summarized on the following page. The mortality assumptions used for male and female service retirements and dependents of active and retired members were changed based on the results of an investigation of mortality experience covering the period July 1, 2009 to June 30, 2012. Based on the results of the study, the mortality assumptions for female service retirements, disability retirements and female beneficiaries of active and retired members were revised to better reflect actual plan experience. In addition, we have provided for future improvements in mortality for service retirements and beneficiaries of active and retired members using a generational approach. There were no other changes in actuarial assumptions and methods since the previous valuation. The valuation does not take into account any changes in U.S. equity prices and bond yields that have occurred after the valuation date. Taking these into account may significantly change the market value of assets shown. The effect of these events on any Trust calculations is not known. Funding and financial accounting rules generally prohibit reflection of changes in assets and underlying economic conditions that occur after the valuation date.

New Jersey Division of Pensions and Benefits 285 In our opinion, the attached schedules of valuation results fairly represent the status of the Supplemental Annuity Collective Trust and present an accurate view of historical data. The underlying assumptions and methods used for the valuation are consistent with the statutory specifications and represent a best estimate of the aggregate future experience of the Trust. To the best of our knowledge, this information is complete and accurate. The valuation was performed by, and under the supervision of, independent qualified actuaries who are members of the American Academy of Actuaries with experience in performing valuations for public retirement systems. The valuation was prepared in accordance with the principles of practice prescribed by the Actuarial Standards Board and generally accepted actuarial procedures and methods. The calculations are based on the current provisions of the Trust, and on actuarial assumptions that are individually and in the aggregate internally consistent and reasonable based on the actual experience of the Trust. Respectfully submitted, Buck Consultants

Janet H. Cranna, M.A.A.A., F.S.A., E.A., F.C.A., M.S.P.P.A. Principal, Consulting Actuary

286 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS SUPPLEMENTAL ANNUITY COLLECTIVE TRUST

SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS

An outline of the actuarial assumptions and methods used for the July 1, 2012 valuation is as follows: In valuing the liabilities of the Variable Benefit Account, an interest rate of 4% per year was used. In addition, the valuation used the RP-2000 Combined Healthy Male (set back 5 years) and Female (set back 3 years) Mortality Tables for service retirement and dependent beneficiaries projected on a generational basis from the base year of 2012 using Projection Scale AA. The RP-2000 Disability Mortality Tables are used to value disabled retirees. Illustrative rates of mortality unadjusted for Projection Scale AA used for valuation purposes are as follows:

Rate per 1,000 Service Retirement Disability Age Male Female Male Female 40 0.77 0.55 22.57 7.45 45 1.08 0.85 22.57 7.45 50 1.51 1.33 28.98 11.53 55 2.14 2.02 35.44 16.54 60 3.62 3.48 42.04 21.84 65 6.75 6.66 50.17 28.03 70 12.74 12.16 62.58 37.63 75 22.21 20.66 82.07 52.23 80 37.83 34.11 109.37 72.31 85 64.37 56.29 141.60 100.20 90 110.76 96.34 183.41 140.05 95 183.41 157.62 267.49 194.51

Based on the results of an investigation of the mortality experience covering the period from July 1, 2009 to June 30, 2012, the mortality tables used for female service retirements and beneficiaries of active and retired members and male and female disability retirements were changed. In addition, for service retirements and beneficiaries of active and retired members, provide for future improvements in mortality by using a generational approach using Projection Scale AA.

New Jersey Division of Pensions and Benefits 287 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS SUPPLEMENTAL ANNUITY COLLECTIVE TRUST

SCHEDULE OF RETIRED MEMBERS AND BENEFICIARIES ADDED TO AND REMOVED FROM ROLLS

Added to Rolls Removed from Rolls Rolls at End of Year % Increase Average Number of Number of Number of (Decrease) Number of Annual Annual Annual in Annual Annual Valuation Variable Variable Variable Variable Variable Date Number Equity Units Number Equity Units Number Equity Units* Equity Units Equity Units 6/30/12 25 2,353.8420 97 9,841.6716 454 41,042.6364 (15.43)% 90.4023 6/30/09 36 3,512.0064 113 11,157.3420 526 48,530.4660 (13.61) 92.2632 6/30/06 35 2,435.0580 100 9,824.2776 603 56,175.8016 (11.62) 93.1605 6/30/03 47 6,040.8276 118 10,755.7560 668 63,565.0212 (6.91) 95.1572 6/30/00 57 5,584.7820 122 10,275.5556 739 68,279.9496 (6.43) 92.3951 6/30/97 53 2,282.7816 108 5,385.3372 804 72,970.7232 (4.08) 90.7596

*The monthly number of variable equity units shown are the benefits of the valuation date and are not the actual benefits paid during the suc- ceeding three fiscal years.

SCHEDULE OF ACTIVE MEMBER VALUATION DATA**

% Increase Number of Average (Decrease) Valuation Active Equity Units in Average Date Members Shares per Person Equity Units 6/30/12 2,729 1,847,879.8189 677.1271 14.52% 6/30/09 3,317 1,961,173.8340 591.2493 11.41 6/30/06 3,576 1,897,693.2350 530.6748 9.09 6/30/03 3,910 1,902,053.0982 486.4586 (9.34) 6/30/00 4,023 2,158,681.7328 536.5851 (21.74) 6/30/97 3,907 2,678,839.2241 685.6512 (8.15)

**These values exclude suspended members.

SOLVENCY TEST

Percentage of Accrued Liabilities Covered by Present Value of Benefits for Net Assets Available

(1) (2) (3) (4) Valuation Aggregate Current Active & Fund Date Contributions Beneficiaries Inactives Balances (1) (2) (3) 6/30/12 $69,131,827 $22,239,231 $54,761,622 $149,840,256 100.00% 100.00% 100.00% 6/30/09 69,792,459 18,294,318 28,783,838 120,414,735 100.00 100.00 100.00 6/30/06 61,417,327 30,688,847 70,384,314 159,612,705 100.00 100.00 95.91 6/30/03 52,666,675 26,582,925 48,099,954 127,186,109 100.00 100.00 99.66 6/30/00 45,026,249 46,341,126 124,548,634 216,985,359 100.00 100.00 100.00 6/30/97 40,015,582 36,811,600 98,695,306 176,280,772 100.00 100.00 100.00

288 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS SUPPLEMENTAL ANNUITY COLLECTIVE TRUST

ANALYSIS OF PAST FINANCIAL EXPERIENCE RECONCILIATION OF UNFUNDED ACCRUED LIABILITY/(SURPLUS)

July 1, 2012 July 1, 2009 July 1, 2006 July 1, 2003 July 1, 2000 Valuation Year Prior Valuation Deficit/(Surplus) $(3,544,120) $2,877,783 $163,445 $(1,069,350) $(758,284) Net Change Due to: Retiree Experience $(947,053) (6,421,903) 1,128,887 1,232,795 1,919,537 Assumption/Method Changes 783,596 N/A 1,585,451 N/A (2,230,603) Current Valuation Deficit/(Surplus) $(3,707,577) $(3,544,120) $2,877,783 $163,445 $(1,069,350)

New Jersey Division of Pensions and Benefits 289 STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS SUPPLEMENTAL ANNUITY COLLECTIVE TRUST

SUMMARY OF THE BENEFIT AND CONTRIBUTION PROVISIONS AS INTERPRETED FOR VALUATION PURPOSES

A summary of the benefit and contribution provisions of equity units per month computed as the actuarial the Trust in effect on the valuation date is presented in the equivalent of the number of equity units in his following digest. Participants’ accounts are expressed in account at the close of the month of retirement, terms of equity units. The value of an equity unit was ini- multiplied by the value of each unit as of the end of tially set at $10. The dollar value of the unit is computed at the quarter preceding the month of payment. the end of each month. It varies as a result of mortality At retirement the participant may elect in lieu of the experience and gains and losses and dividend earnings variable life annuity either (1) a single cash on the Variable Division’s investments. payment, or (2) an equivalent reduced annuity with 1. ELIGIBILITY the provision that: Member of a State-administered retirement system (a) In case of death prior to 5 years from the effec- may become a participant upon filing an application tive date of the annuity, the annuity will be con- for enrollment. tinued to his designated beneficiary for the remainder of the 5-year period, or 2. PARTICIPANT ACCOUNTS (b) In case of death prior to 10 years from the Although contributions are permitted in either fixed effective date of the annuity, the annuity will be or variable accounts, only the variable system is continued to his designated beneficiary for the currently in place. remainder of the 10-year period, or (a) Three optional participant accounts: (c) At the death of the participant, his variable (1) Variable annuity account. annuity will be continued throughout the life of such other person as the participant shall have (2) Tax sheltered annuity account under Section designated at the time of retirement, or 403(b) of the Internal Revenue Code. (d) At the death of the participant, one-half of his (3) Qualified voluntary employee contribution variable annuity will be continued throughout account (QVEC) – eliminated January 1, the life of such other person as the participant 1987. shall have designated at the time of retirement. (b) Value of Account: The total number of equity In the event the value of the participant’s account at units in force in the variable account at the end retirement results in an annuity with initial monthly of each month shall be determined as follows: payments of less than $10, the benefit shall be paid (1) The number of equity units in force at the in a single cash payment. start of the month; plus Death Before Retirement: If a participant dies (2) The number of equity units credited as of before retirement, a lump sum payment equal to the first of the month for participant’s con- the value of his account on the last day of the tributions received during the preceding month of his death is paid to his designated bene- quarter, if any; less ficiary or to his estate. If the beneficiary is a natural (3) The number of equity units paid out in the person, he may elect, in lieu of a lump sum pay- current month on account of terminations ment, an annuity under any of the methods of set- for death or withdrawal during the preced- tlement available to a retirant. ing month; less Withdrawal: Withdrawal is permitted only if mem- (4) The number of equity units transferred as bership in the basic State administered retirement of the first of the month for retirement dur- system is terminated. However, the Council may ing the preceding month; plus terminate an inactive account if the value of the (5) One third of one percent of the balance so account is less than $100. The amount paid on obtained. withdrawal is the value of the participant’s account as of the end of the month of termination. 3. BENEFITS 4. CONTRIBUTIONS Retirement: Upon retirement a participant is paid a life annuity which is the fixed number of variable Participants: Each participant contributes through payroll deductions integral dollar amounts not in

290 New Jersey Division of Pensions and Benefits STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS SUPPLEMENTAL ANNUITY COLLECTIVE TRUST

SUMMARY OF THE BENEFIT AND CONTRIBUTION PROVISIONS, Continued

excess of 10% of his salary. He may also make lump sum contributions by direct payments in integral dollar amounts of not less than $50, provided that total contributions for any one year may not exceed 10% of his annual salary. Employers: Employers may contribute, on behalf of eligible employees who agree to a salary reduction equivalent to the amount of the contribution, even dollar amounts which shall be from 1% to 10% of base salary. The amounts by which the employee’s salary is reduced must be within the exclusion allowance provided under Section 403(b) of the Internal Revenue Code.

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294 New Jersey Division of Pensions and Benefits STATISTICAL INFORMATION nual Allowance for the last five fiscal the last five for Allowance nual STATE OF NEW JERSEY STATE DIVISION OF PENSIONS AND BENEFITS (Based on the most recent actuarial valuation prepared as of 6/30/12) (Based on the most recent actuarial valuation SCHEDULE OF RETIRED MEMBERS BY TYPE OF BENEFIT SCHEDULE OF RETIRED MEMBERS BY PERS PERS GROUP (STATE) (LOCAL) TPAF PFRS SPRS JRS CPFPF POPF TOTAL SERVICE RETIREMENTS SERVICE Number AllowanceAnnual Allowance Annual Average $1,045,284,044 DISABILITY ORDINARY $1,389,255,757 $25,822 $3,256,792,847 $1,487,844,925RETIREMENTS $144,028,362Number AllowanceAnnual $38,198,861 $16,150 Allowance Annual Average DISABILITY 40,481ACCIDENTAL $241,663 $18,807 $40,104 $82,674,370RETIREMENTS $121,077,295Number $457,670 $7,362,104,129 AllowanceAnnual $16,013 $70,573,069 86,023 $57,503 Allowance Annual Average $77,741,656 MEMBERS’ ACTIVE $27,165 4,396 $26,051 BENEFITS $12,115,681DEATH $60,874 $4,612,430 81,209Number $17,049,763 Allowance $1,046,777Annual $25,716 $100,789 $27,249 Allowance Annual Average $9,754,951 7,561 25,874 $110,744,664RETIRED MEMBERS’ $15,633 $41,160 $5,377 BENEFITS DEATH $34,421 $15,104 446 $7,551,546Number $359,551 2,709 AllowanceAnnual 2,366 $18,271 $116,309 $45,724 $26,985 Allowance Annual Average $1,151,054 $14,764 $357,757,959 DEFERRED 663 $15,362 $20,892 VESTED $56,871,661TERMINATION — 2,853 $53,940 $41,784 $31,145 $5,377 23 $103,249,032Number 379 $20,137,395 $125,813,089 AllowanceAnnual $11,180 $35,267 $171,334,853 $2,521,427 237 $6,746 $10,777,588 134 3,702 — — $24,425 63 $41,335 $3,684,336 16 $6,330,041 $591,934 $20,250 2,422 $7,166,760 $1,260,679 $19,649 $21,438 $32,885 $209,433 9,235 $157,236,254 $5,575,788 9 — $393,419 2 31 $32,759 293 $476,030,362 $39,323 140 $5,370 $989,556 5,151 $25,051,901 $9,825 236,379 $49,070 $3,575 1 571 739 $40,214 7,992 — — $6,814 $31,792 $93,690 392 61 4 $4,522 329 — $17,756 17,667 55 — 18 129 2 185 — — 39 3,910 $17,510,130 87 11 3 26,810 788 — — 1,482 Average Annual Allowance Annual Average Note: from Rolls”“Schedule of Retired Members and Beneficiaries Added to and Removed See $12,575 An Average in the Actuarial Section for $9,698 $14,224 $17,992 — $31,230 — — $11,815 years.

New Jersey Division of Pensions and Benefits 295 STATISTICAL INFORMATION

STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS SCHEDULE OF REVENUES BY SOURCE

(based on Comprehensive Annual Financial Reports for relevant years)

PERCENTAGE OF ANNUAL INVESTMENT FISCAL MEMBER EMPLOYER COVERED AND OTHER YEAR CONTRIBUTIONSCONTRIBUTIONSCOMPENSATION REVENUES TOTAL

PUBLIC EMPLOYEES’ 2004 374,864,048 774,456,965 8.25 2,778,643,257 3,927,964,270 RETIREMENT SYSTEM 2005 533,862,353 410,736,970 4.15 1,928,822,241 2,873,421,564 2006 630,322,617 322,487,907* 5.11 2,338,531,507 3,291,342,031 2007 654,493,521 674,629,437 6.14 3,810,965,382 5,140,088,340 2008 705,903,439 812,356,103 7.11 (391,708,689) 1,126,550,853 2009 741,911,166 774,672,945 6.56 (3,787,350,299) (2,270,766,188) 2010 743,486,792 919,999,429 7.67 2,696,305,650 4,359,791,871 2011 728,602,461 925,626,097 7.73 3,813,641,343 5,467,869,901 2012 793,993,077 997,437,885 8.59 628,573,598 2,420,004,560 2013 845,999,525 1,184,446,277 10.36 2,687,826,583 4,718,272,385

TEACHERS’ PENSION 2004 405,695,555 456,411,646 5.93 3,652,597,813 4,514,705,014 AND ANNUITY FUND 2005 488,861,870 550,722,913 6.84 2,471,563,713 3,511,148,496 2006 507,106,612 101,327,375* 7.77 2,980,823,472 3,589,257,459 2007 523,997,776 693,759,318 7.93 4,874,924,850 6,092,681,944 2008 585,800,133 701,584,600 7.73 (766,377,094) 521,007,639 2009 616,222,799 102,472,305 1.09 (5,071,848,719) (4,353,153,615) 2010 615,862,621 42,850,384 0.44 3,277,424,465 3,936,137,470 2011 593,587,972 36,117,717 0.36 4,364,388,191 4,994,093,880 2012 685,608,357 323,100,685 3.34 640,982,289 1,649,691,331 2013 726,523,839 655,438,957 6.70 2,865,390,916 4,247,353,712

POLICE AND FIREMEN’S 2004 263,173,065 264,164,091 9.30 1,943,638,309 2,470,975,465 RETIREMENT SYSTEM 2005 276,195,076 473,227,921 15.91 1,383,396,386 2,132,819,383 2006 290,681,716 714,210,999 23.03 1,675,380,936 2,680,273,651 2007 307,335,360 825,687,477 25.18 2,777,158,696 3,910,181,533 2008 310,259,367 886,871,720 25.63 (339,212,149) 857,918,938 2009 326,491,066 913,302,011 23.40 (2,735,834,439) (1,496,041,362) 2010 330,951,798 1,001,223,223 27.25 2,008,239,281 3,340,414,302 2011 327,357,244 (216,914,092) (5.83) 3,071,480,855 3,181,924,007 2012 374,688,168 842,084,854 23.07 371,496,172 1,588,269,194 2013 387,775,184 898,531,390 24.58 2,191,780,555 3,478,087,129

STATE POLICE 2004 14,682,524 45,339 0.02 216,209,057 230,936,920 RETIREMENT SYSTEM 2005 15,450,745 437,652 0.20 140,386,795 156,275,192 2006 16,917,317 13,015,093 5.38 173,767,121 203,699,531 2007 17,861,043 29,285,276 11.13 291,531,439 338,677,758 2008 18,306,246 36,506,782 13.26 (34,109,753) 20,703,275 2009 18,652,049 5,644,059 2.01 (298,475,097) (274,178,989) 2010 18,825,131 1,235,580 0.43 214,479,134 234,539,845 2011 18,164,837 2,208,340 0.76 280,447,557 300,820,734 2012 23,233,207 13,578,328 4.93 48,915,745 85,727,280* 2013 21,875,233 27,781,894 9.81 191,873,254 241,530,381

* Restated due to the implementation of GASB Statement No. 43 (Other Post-Employment Benefits)

296 New Jersey Division of Pensions and Benefits STATISTICAL INFORMATION

STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS SCHEDULE OF REVENUES BY SOURCE

(based on Comprehensive Annual Financial Reports for relevant years)

PERCENTAGE OF ANNUAL INVESTMENT FISCAL MEMBER EMPLOYER COVERED AND OTHER YEAR CONTRIBUTIONSCONTRIBUTIONSCOMPENSATION REVENUES TOTAL

JUDICIAL 2004 1,795,721 5,084,315 8.25 43,476,173 50,356,209 RETIREMENT SYSTEM 2005 1,480,942 6,162,076 10.01 26,763,410 34,406,428 2006 1,583,469 7,972,000 13.18 32,475,105 42,030,574 2007 2,201,527 12,741,898 20.39 52,215,397 67,158,822 2008 1,825,726 12,913,986 20.45 (1,268,945) 13,470,767 2009 3,032,945 1,696,891 2.53 (56,230,261) (51,500,425) 2010 3,054,881 2,308,854 3.29 37,131,556 42,495,291 2011 2,575,318 1,693,412 2.36 42,358,462 46,627,192 2012 2,476,205 6,061,953 8.99 4,954,214 13,492,372 2013 3,402,807 12,308,419 18.24 25,932,027 41,643,253

CONSOLIDATED 2004 — 2,000,402 — 10,206,935 12,207,337 POLICE AND FIREMEN’S 2005 — 7,074,835 — 9,368,766 16,443,601 PENSION FUND 2006 — 6,450,118 — 8,637,363 15,087,481 2007 — 1,809,773 — 7,974,527 9,784,300 2008 — 550,881 — 6,953,657 7,504,538 2009 — 1,276,151 — 5,784,074 7,060,225 2010 — 13,236 — 4,865,684 4,878,920 2011 — 8,199 — 4,050,513 4,058,712 2012 — 193,183 — 3,234,795 3,427,978 2013 — 911,150 — 2,478,204 3,389,354

PRISON OFFICERS’ 2004 — — — 1,363,329 1,363,329 PENSION FUND 2005 — — — 1,544,971 1,544,971 2006 — — — 1,682,105 1,682,105 2007 — — — 1,850,323 1,850,323 2008 — — — 1,650,523 1,650,523 2009 — — — 1,286,442 1,286,442 2010 — — — 1,100,162 1,100,162 2011 — — — 1,096,674 1,096,674 2012 — — — 1,004,312 1,004,312 2013 — — — 898,612 898,612

PENSION TRUST 2004 1,060,210,913 1,502,162,758 7.43 8,646,134,873 11,208,508,544 FUNDS TOTAL 2005 1,615,850,986 1,448,362,367 6.83 5,961,846,282 9,026,059,635 2006 1,446,611,731 1,165,463,492* 8.67 7,211,297,609 9,823,372,832 2007 1,505,889,227 2,237,913,179 9.59 11,816,620,614 15,560,423,020 2008 1,622,094,911 2,450,784,072 10.09 (1,524,072,450) 2,548,806,533 2009 1,706,310,025 1,799,064,362 7.14 (11,942,668,299) (8,437,293,911) 2010 1,712,181,223 1,967,630,706 7.63 8,239,545,932 11,919,357,861 2011 1,670,287,832 748,739,673 2.87 11,577,463,595 13,996,491,100 2012 1,879,999,014 2,182,456,888 8.63 1,699,161,125 5,761,617,027 2013 1,985,576,588 2,779,418,087 8.63 7,966,180,151 12,731,174,826

* Restated due to the implementation of GASB Statement No. 43 (Other Post-Employment Benefits)

New Jersey Division of Pensions and Benefits 297 STATISTICAL INFORMATION

STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS SCHEDULE OF EXPENSES BY TYPE

(based on Comprehensive Annual Financial Reports for relevant years)

WITHDRAWALS, TRANSFERS BENEFITS ADMINISTRATIVE TO OTHER FISCAL AND OTHER RETIREMENT YEAR RETIREMENT OTHER EXPENSES SYSTEMS TOTAL

PUBLIC EMPLOYEES’ 2004 1,342,672,462 429,133,774 69,093,929 15,202,812 1,856,102,977 RETIREMENT SYSTEM 2005 1,430,518,096 469,353,256 77,859,834 13,229,171 1,990,960,357 2006 1,527,004,088 282,372,610* 67,232,871 20,404,379 1,897,013,948 2007 1,649,495,269 327,539,477 87,186,633 9,665,453 2,073,886,832 2008 1,782,422,238 366,958,834 100,212,670 15,047,572 2,264,641,314 2009 1,936,521,198 370,573,294 97,943,420 18,340,013 2,423,377,925 2010 2,058,292,073 396,434,652 99,779,660 15,384,771 2,569,891,156 2011 2,273,677,650 398,645,486 121,899,183 11,926,661 2,806,148,980 2012 2,510,170,979 390,368,925 118,918,227 11,541,759 3,030,999,890 2013 2,646,551,098 394,323,222 125,195,980 15,603,909 3,181,674,209

TEACHERS’ PENSION 2004 1,615,493,787 690,695,012 34,115,575 3,411,106 2,343,715,480 AND ANNUITY FUND 2005 1,778,364,298 777,410,393 40,688,935 2,603,363 2,599,066,989 2006 1,943,588,309 297,294,133* 40,311,056 3,289,349 2,284,482,847 2007 2,117,640,036 335,912,944 45,808,681 3,044,379 2,502,406,040 2008 2,295,924,794 381,757,919 50,298,222 4,205,762 2,732,186,697 2009 2,453,071,751 416,493,789 49,886,243 4,057,851 2,923,509,634 2010 2,573,053,407 455,140,026 51,867,458 2,401,574 3,082,462,465 2011 2,897,547,945 445,910,746 52,090,871 4,842,890 3,400,392,452 2012 3,089,098,664 449,518,827 49,554,835 2,880,016 3,591,052,342 2013 3,230,672,077 442,437,581 54,781,359 4,926,204 3,732,817,221

POLICE AND FIREMEN’S 2004 828,110,553 158,945,146 9,998,813 680,232 997,734,724 RETIREMENT SYSTEM 2005 899,263,678 165,199,575 10,978,333 594,778 1,076,036,364 2006 969,680,617 183,810,179 11,037,817 537,733 1,165,066,346 2007 1,047,270,962 206,072,605 11,549,909 491,009 1,265,384,485 2008 1,129,947,758 223,161,242 13,181,196 394,592 1,366,684,788 2009 1,216,141,979 247,278,432 12,295,214 531,253 1,476,246,878 2010 1,310,546,315 262,964,540 11,318,702 376,544 1,585,206,101 2011 1,454,083,372 267,469,347 11,583,365 237,855 1,733,373,939 2012 1,593,941,123 268,460,489 11,117,174 353,727 1,873,872,513 2013 1,706,252,607 263,216,129 10,616,511 148,902 1,980,234,149

STATE POLICE 2004 74,612,608 14,659,455 307,349 11,477 89,590,889 RETIREMENT SYSTEM 2005 83,114,429 15,755,321 536,941 32,016 99,438,707 2006 87,425,434 17,512,726 478,723 — 105,416,883 2007 92,445,253 18,467,646 707,974 — 111,620,873 2008 99,990,185 21,447,892 728,121 — 122,166,198 2009 107,778,693 24,196,051 743,849 — 132,718,593 2010 114,055,702 24,466,800 722,827 — 139,245,329 2011 122,990,229 25,942,676 454,558 — 149,387,463 2012 138,282,207 24,783,162 442,277 4 163,507,650 2013 156,528,482 25,890,232 333,770 — 182,752,484

* Restated due to the implementation of GASB Statement No. 43 (Other Post-Employment Benefits)

298 New Jersey Division of Pensions and Benefits STATISTICAL INFORMATION

STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS SCHEDULE OF EXPENSES BY TYPE

(based on Comprehensive Annual Financial Reports for relevant years)

WITHDRAWALS, TRANSFERS BENEFITS ADMINISTRATIVE TO OTHER FISCAL AND OTHER RETIREMENT YEAR RETIREMENT OTHER EXPENSES SYSTEMS TOTAL

JUDICIAL 2004 23,787,469 3,276,925 309,713 — 27,374,107 RETIREMENT SYSTEM 2005 25,775,961 3,242,394 169,357 — 29,187,712 2006 27,411,244 3,726,355 199,592 — 31,337,191 2007 29,173,626 3,767,566 159,340 — 33,100,532 2008 30,653,458 4,949,502 222,565 — 35,825,525 2009 32,742,280 4,922,727 202,022 — 37,867,029 2010 35,634,276 5,598,235 367,124 — 41,599,635 2011 38,075,562 5,122,471 248,783 — 43,446,816 2012 41,022,857 4,932,689 205,529 — 46,161,075 2013 42,972,345 4,712,524 163,232 — 47,848,101

CONSOLIDATED 2004 16,829,838 — 28,831 — 16,858,669 POLICE AND FIREMEN’S 2005 15,137,682 — 54,494 — 15,192,176 PENSION FUND 2006 13,478,301 — 25,777 — 13,504,078 2007 11,873,928 — 27,883 — 11,901,811 2008 10,398,599 — 20,152 — 10,418,751 2009 8,844,291 — 13,234 — 8,857,525 2010 7,495,068 — 8,200 — 7,503,268 2011 6,308,585 — 19,182 — 6,327,767 2012 5,046,645 — 14,152 — 5,060,797 2013 1,404,672 2,477,987 11,739 — 3,894,398

PRISON OFFICERS’ 2004 2,750,556 — 6,298 — 2,756,854 PENSION FUND 2005 2,631,732 — 14,202 — 2,645,934 2006 2,443,222 — 7,630 — 2,450,852 2007 2,356,383 — 9,297 — 2,365,680 2008 2,250,040 — 9,403 — 2,259,443 2009 2,181,622 — 8,341 — 2,189,963 2010 2,063,123 — 5,591 — 2,068,714 2011 2,110,016 — 7,376 — 2,117,392 2012 1,950,804 — 6,922 — 1,957,726 2013 874,422 889,542 6,965 — 1,770,929

PENSION TRUST 2004 3,904,257,253 1,296,710,312 113,860,508 19,305,627 5,334,133,700 FUNDS TOTAL 2005 4,234,805,876 1,430,960,939 130,302,096 16,459,328 5,812,528,239 2006 4,571,031,215 784,716,003* 119,293,466 24,231,461 5,499,272,145 2007 4,950,255,457 891,760,238 145,449,717 13,200,841 6,000,666,253 2008 5,351,587,072 998,275,389 164,672,329 19,647,926 6,534,182,716 2009 5,757,281,814 1,063,464,293 161,092,323 22,929,117 7,004,767,547 2010 6,101,139,964 1,144,604,253 164,069,562 18,162,889 7,427,976,668 2011 6,794,793,359 1,143,090,726 186,303,318 17,007,406 8,141,194,809 2012 7,379,513,279 1,138,064,092 180,259,116 14,775,506 8,712,611,993 2013 7,785,255,703 1,133,947,217 191,109,556 20,679,015 9,130,991,491

* Restated due to the implementation of GASB Statement No. 43 (Other Post-Employment Benefits)

New Jersey Division of Pensions and Benefits 299 STATISTICAL INFORMATION

STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS SCHEDULE OF CHANGES IN NET ASSETS

(based on Comprehensive Annual Financial Reports for relevant years)

NET ASSETS FISCAL NET BEGINNING END YEAR ADDITIONS DEDUCTIONS CHANGE OF YEAR OF YEAR

PUBLIC EMPLOYEES' 2004 3,927,964,270 1,856,102,977 2,071,861,293 20,961,491,114 23,033,352,407 RETIREMENT SYSTEM 2005 2,873,421,564 1,990,960,356 882,461,208 23,033,352,407 23,915,813,615 2006 3,291,342,031* 1,897,013,948* 1,394,328,083 23,914,516,673* 25,308,844,756 2007 5,140,088,340 2,073,886,832 3,066,201,508 25,308,844,756 28,375,046,264 2008 1,126,550,853 2,264,641,314 (1,138,090,461) 28,375,046,264 27,236,955,803 2009 (2,270,766,187) 2,423,377,925 (4,694,144,112) 27,236,955,803 22,542,811,691 2010 4,359,791,871 2,569,891,156 1,789,900,715 22,542,811,691 24,332,712,406 2011 5,467,869,901 2,806,148,979 2,661,720,922 24,332,712,406 26,994,433,328 2012 2,420,004,560 3,030,999,890 (610,995,330) 26,994,433,328 26,383,437,998 2013 4,718,272,385 3,181,674,209 1,536,598,176 26,383,437,998 27,920,036,174

TEACHERS' PENSION 2004 4,514,705,014 2,343,715,480 2,170,989,534 26,549,160,496 28,720,150,030 AND ANNUITY FUND 2005 3,511,148,496 2,599,066,990 912,081,506 28,720,150,030 29,632,231,536 2006 3,589,257,459* 2,284,482,847* 1,304,774,612 29,631,612,619* 30,936,387,231 2007 6,092,681,944 2,502,406,040 3,590,275,904 30,936,387,231 34,526,663,135 2008 521,007,639 2,732,186,697 (2,211,179,058) 34,526,663,135 32,315,484,077 2009 (4,353,153,615) 2,923,509,634 (7,276,663,249) 32,315,484,077 25,038,820,828 2010 3,936,137,470 3,082,462,465 853,675,005 25,038,820,828 25,892,495,833 2011 4,994,093,881 3,400,392,453 1,593,701,428 25,892,495,833 27,486,197,261 2012 1,649,691,331 3,591,052,342 (1,941,361,011) 27,486,197,261 25,544,836,250 2013 4,247,353,712 3,732,817,221 514,536,491 25,544,836,250 26,059,372,741

POLICE AND FIREMEN'S 2004 2,470,975,465 997,734,724 1,473,240,741 14,879,955,591 16,353,196,332 RETIREMENT SYSTEM 2005 2,132,819,383 1,076,036,364 1,056,783,019 16,353,196,332 17,409,979,351 2006 2,680,273,651 1,165,066,345 1,515,207,306 17,409,979,351 18,925,186,657 2007 3,910,181,533 1,265,384,485 2,644,797,048 18,925,186,657 21,569,983,705 2008 857,918,938 1,366,684,788 (508,765,850) 21,569,983,705 21,061,217,855 2009 (1,496,041,362) 1,476,246,878 (2,972,288,240) 21,061,217,855 18,088,929,615 2010 3,340,414,302 1,585,206,101 1,755,208,201 18,088,929,615 19,844,137,816 2011 3,181,924,007 1,733,373,939 1,448,550,068 19,844,137,816 21,292,687,884 2012 1,588,269,194 1,873,872,513 (285,603,319) 21,292,687,884 21,007,084,565 2013 3,478,087,129 1,980,234,149 1,497,852,980 21,007,084,565 22,504,937,545

STATE POLICE 2004 230,936,920 89,590,889 141,346,031 1,545,738,865 1,687,084,896 RETIREMENT SYSTEM 2005 156,275,192 99,438,707 56,836,485 1,687,084,896 1,743,921,381 2006 203,699,531 105,416,883 98,282,648 1,743,921,381 1,842,204,029 2007 338,677,758 111,620,873 227,056,885 1,842,204,029 2,069,260,914 2008 20,703,275 122,166,199 (101,462,924) 2,069,260,914 1,967,797,990 2009 (274,178,989) 132,718,593 (406,897,582) 1,967,797,990 1,560,900,408 2010 234,539,845 139,245,329 95,294,516 1,560,900,408 1,656,194,924 2011 300,820,734 149,387,463 151,433,271 1,656,194,924 1,807,628,195 2012 85,727,280 163,507,650 (77,780,370) 1,807,628,195 1,729,847,825 2013 241,530,381 182,752,484 58,777,897 1,729,847,825 1,788,625,722

* Restated due to the implementation of GASB Statement No. 43 (Other Post-Employment Benefits)

300 New Jersey Division of Pensions and Benefits STATISTICAL INFORMATION

STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS SCHEDULE OF CHANGES IN NET ASSETS

(based on Comprehensive Annual Financial Reports for relevant years)

NET ASSETS FISCAL NET BEGINNING END YEAR ADDITIONS DEDUCTIONS CHANGE OF YEAR OF YEAR

JUDICIAL 2004 50,356,209 27,374,107 22,982,102 299,398,058 322,380,160 RETIREMENT SYSTEM 2005 34,406,428 29,187,712 5,218,716 322,380,160 327,598,876 2006 42,030,574 31,337,192 10,693,382 327,598,876 338,292,258 2007 67,158,822 33,100,532 34,058,290 338,292,258 372,350,548 2008 13,470,767 35,825,525 (22,354,758) 372,350,548 349,995,790 2009 (51,500,425) 37,867,029 (89,367,454) 349,995,790 260,628,336 2010 42,495,291 41,599,635 895,656 260,628,336 261,523,992 2011 46,627,192 43,446,816 3,180,376 261,523,992 264,704,368 2012 13,492,372 46,161,075 (32,668,703) 264,704,368 232,035,665 2013 41,643,253 47,848,101 (6,204,848) 232,035,665 225,830,817

CONSOLIDATED 2004 12,207,337 16,858,669 (4,651,332) 20,030,610 15,379,278 POLICE AND FIREMEN’S 2005 16,443,601 15,192,176 1,251,425 15,379,278 16,630,703 PENSION FUND 2006 15,087,481 13,504,078 1,583,403 16,630,703 18,214,106 2007 9,784,300 11,901,811 (2,117,511) 18,214,106 16,096,595 2008 7,504,538 10,418,750 (2,914,212) 16,096,595 13,182,383 2009 7,060,225 8,857,525 (1,797,300) 13,182,383 11,385,083 2010 4,878,920 7,503,268 (2,624,348) 11,385,083 8,760,735 2011 4,058,712 6,327,768 (2,269,056) 8,760,735 6,491,679 2012 3,427,978 5,060,797 (1,632,819) 6,491,679 4,858,860 2013 3,389,354 3,894,398 (505,044) 4,858,860 4,353,816

PRISON OFFICERS' 2004 1,363,329 2,756,854 (1,393,525) 17,277,953 15,884,428 PENSION FUND 2005 1,544,971 2,645,934 (1,100,963) 15,884,428 14,783,465 2006 1,682,105 2,450,852 (768,747) 14,783,465 14,014,718 2007 1,850,323 2,365,680 (515,357) 14,014,718 13,499,361 2008 1,650,523 2,259,443 (608,920) 13,499,361 12,890,441 2009 1,286,442 2,189,963 (903,521) 12,890,441 11,986,920 2010 1,100,162 2,068,714 (968,552) 11,986,920 11,018,368 2011 1,096,674 2,117,392 (1,020,718) 11,018,368 9,997,650 2012 1,004,312 1,957,726 (953,414) 9,997,650 9,044,236 2013 898,612 1,770,929 (872,317) 9,044,236 8,171,919

PENSION TRUST 2004 11,208,508,544 5,334,133,700 5,874,374,844 64,273,052,687 70,147,427,531 FUNDS TOTAL 2005 8,726,059,635 5,812,528,239 2,913,531,396 70,147,427,531 73,060,958,927 2006 9,823,372,832* 5,499,272,145* 4,324,100,687 73,059,043,068* 77,383,143,755 2007 15,560,423,020 6,000,666,253 9,559,756,767 77,383,143,755 86,942,900,522 2008 2,548,806,533 6,534,182,716 (3,985,376,183) 86,942,900,522 82,957,524,339 2009 (8,437,293,911) 7,004,767,547 (15,442,061,458) 82,957,524,339 67,515,462,881 2010 11,919,357,861 7,427,976,668 4,491,381,193 67,515,462,881 72,006,844,074 2011 13,996,491,101 8,141,194,810 5,855,296,291 72,006,844,074 77,862,140,365 2012 5,761,617,027 8,712,611,993 (2,950,994,966) 77,862,140,365 74,911,145,399 2013 12,731,174,826 9,130,991,491 3,600,183,335 74,911,145,399 78,511,328,734

* Restated due to the implementation of GASB Statement No. 43 (Other Post-Employment Benefits)

New Jersey Division of Pensions and Benefits 301 STATISTICAL INFORMATION

STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS PARTICIPATING COUNTY AND MUNICIPAL EMPLOYERS

ATLANTIC COUNTY (*) COMM WORKERS OF AMERICA # BRIELLE BOROUGH EATONTOWN BOROUGH BERGEN COUNTY 1034 BRIGANTINE CITY EDGEWATER BOROUGH BURLINGTON COUNTY/PAYROLL COMM WORKERS OF AMERICA BROOKLAWN BOROUGH EDGEWATER PARK TOWNSHIP (*) DEPT #1037 BUENA BOROUGH (*) EDISON TOWNSHIP CAMDEN CO BOARD OF CHOSEN COMM WORKERS OF AMERICA # BUENA VISTA TOWNSHIP (*) EGG HARBOR CITY FREEHOLDERS 1033 BURLINGTON CITY (*) EGG HARBOR TOWNSHIP (*) CAPE MAY COUNTY BURLINGTON TOWNSHIP ELIZABETH CITY (*) CUMBERLAND COUNTY ABERDEEN TOWNSHIP BUTLER BOROUGH ELK TOWNSHIP (*) ESSEX COUNTY ABSECON CITY (*) BYRAM TOWNSHIP ELMER BOROUGH GLOUCESTER COUNTY ALEXANDRIA TOWNSHIP (*) CALDWELL BOROUGH ELMWOOD PARK BOROUGH (*) HUDSON COUNTY (*) ALLAMUCHY TOWNSHIP (*) CALIFON BOROUGH (*) ELSINBORO TOWNSHIP HUNTERDON COUNTY ALLENDALE BOROUGH CAMDEN CITY EMERSON BOROUGH MERCER COUNTY (*) ALLENHURST BOROUGH (*) CAPE MAY CITY (*) ENGLEWOOD CITY (*) MIDDLESEX COUNTY ALLENTOWN BOROUGH CAPE MAY POINT BOROUGH (*) ENGLEWOOD CLIFFS BOROUGH (*) MONMOUTH COUNTY/HALL OF ALLOWAY TOWNSHIP CARLSTADT BOROUGH ENGLISHTOWN BOROUGH RECORDS ALPHA BOROUGH (*) CARNEYS POINT TOWNSHIP ESSEX FELLS BOROUGH (*) MORRIS COUNTY ALPINE BOROUGH CARTERET BOROUGH ESTELL MANOR CITY (*) OCEAN COUNTY (*) ANDOVER BOROUGH CEDAR GROVE TOWNSHIP (*) EVESHAM TOWNSHIP PASSAIC COUNTY ANDOVER TOWNSHIP (*) CHATHAM BOROUGH EWING TOWNSHIP (*) SALEM COUNTY (*) ASBURY PARK CITY CHATHAM TOWNSHIP FAIR HAVEN BOROUGH (*) SOMERSET COUNTY FINANCE ATLANTIC CITY CHERRY HILL TOWNSHIP FAIR LAWN BOROUGH OFFICE ATLANTIC HIGHLANDS (*) CHESILHURST BOROUGH FAIRFIELD TOWNSHIP (CUMBER- SUSSEX COUNTY AUDUBON BOROUGH (*) CHESTER BOROUGH (*) LAND) UNION COUNTY AUDUBON PARK BOROUGH (*) CHESTER TOWNSHIP (*) FAIRFIELD TOWNSHIP (ESSEX) WARREN CO BD OF CHOSEN FREE- AVALON BOROUGH CHESTERFIELD TOWNSHIP (*) FAIRVIEW BOROUGH (*) HOLDERS AVON BY THE SEA CINNAMINSON TOWNSHIP FANWOOD BOROUGH BARNEGAT LIGHT BOROUGH (*) CLARK TOWNSHIP (*) FAR HILLS BOROUGH (*) ATLANTIC COUNTY WELFARE BARNEGAT TOWNSHIP CLAYTON BOROUGH (*) FARMINGDALE BOROUGH (*) BOARD (*) BARRINGTON BOROUGH CLEMENTON BOROUGH (*) FIELDSBORO BOROUGH BERGEN CO BOARD OF SOCIAL BASS RIVER TWP MUNICIPAL BLDG CLIFFSIDE PARK BOROUGH (*) FLEMINGTON BOROUGH (*) SERVICES BAY HEAD BOROUGH (*) CLIFTON CITY FLORENCE TOWNSHIP (*) BURLINGTON CO BD OF SOC SER- BAYONNE CITY (*) FLORHAM PARK BOROUGH VICES (*) CLINTON TOWN (*) BEACH HAVEN BOROUGH (*) FOLSOM BOROUGH (*) CAMDEN CO BD OF SOCIAL SER- CLINTON TOWNSHIP (*) BEACHWOOD BOROUGH VICES (*) CLOSTER BOROUGH (*) FORT LEE BOROUGH BEDMINSTER TOWNSHIP (*) CAPE MAY CO BOARD SOCIAL SER- COLLINGSWOOD BOROUGH (*) FRANKFORD TOWNSHIP (*) BELLEVILLE TOWNSHIP VICES COLTS NECK TOWNSHIP FRANKLIN BOROUGH (*) BELLMAWR BOROUGH CUMBERLAND CO BD SOCIAL SER- COMMERCIAL TOWNSHIP (*) FRANKLIN LAKES BOROUGH (*) VICES (*) BELMAR BOROUGH (*) CORBIN CITY (*) FRANKLIN TOWNSHIP (GLOUCES- GLOUCESTER CO BD OF SOCIAL BELVIDERE TOWN (*) CRANBURY TOWNSHIP (*) TER) SERVICES BERGENFIELD BOROUGH (*) CRANFORD TOWNSHIP FRANKLIN TOWNSHIP (HUNTERDON) HUNTERDON CO BOARD SOCIAL BERKELEY HEIGHTS TOWNSHIP CRESSKILL BOROUGH (*) FRANKLIN TOWNSHIP (SOMERSET) SERVICES BERKELEY TWP MUNICIPAL BLDG (*) DEAL BOROUGH (*) FRANKLIN TOWNSHIP (WARREN) MERCER CO BOARD OF SOCIAL BERLIN BOROUGH (*) DEERFIELD TOWNSHIP (*) FREDON TOWNSHIP SERVICE (*) BERLIN TOWNSHIP (*) DELANCO TOWNSHIP (*) FREEHOLD BOROUGH (*) MIDDLESEX CO BD OF SOCIAL SER- BERNARDS TOWNSHIP (*) DELAWARE TOWNSHIP (*) FREEHOLD TOWNSHIP VICES BERNARDSVILLE BORO (*) DELRAN TOWNSHIP FRELINGHUYSEN TWP (*) MONMOUTH CO DIV OF SOCIAL BETHLEHEM TOWNSHIP (*) DEMAREST BOROUGH (*) FRENCHTOWN BOROUGH (*) SERVICES BEVERLY CITY MUNICIPAL BLDG (*) DENNIS TOWNSHIP (*) GALLOWAY TOWNSHIP OCEAN CO BOARD OF SOCIAL SER- BLAIRSTOWN TOWNSHIP (*) DENVILLE TOWNSHIP (*) GARFIELD CITY VICES (*) BLOOMFIELD TOWNSHIP DEPTFORD TOWNSHIP (*) GARWOOD BOROUGH (*) PASSAIC CO BOARD OF SOCIAL BLOOMINGDALE BOROUGH (*) DOVER TOWN GIBBSBORO BOROUGH SERVICES BLOOMSBURY BOROUGH (*) DOWNE TOWNSHIP GLASSBORO BOROUGH SALEM CO BOARD OF SOCIAL SER- BOGOTA BOROUGH DUMONT BOROUGH (*) GLEN GARDNER BOROUGH (*) VICES (*) BOONTON TOWN (*) DUNELLEN BOROUGH (*) GLEN RIDGE BOROUGH (*) SOMERSET CO BD OF SOCIAL SER- BOONTON TOWNSHIP (*) GLEN ROCK BOROUGH (*) VICES (*) EAGLESWOOD TOWNSHIP (*) BORDENTOWN CITY (*) GLOUCESTER CITY UNION CO BOARD OF SOCIAL SER- EAST AMWELL TOWNSHIP (*) BORDENTOWN TWP GLOUCESTER TOWNSHIP VICES EAST BRUNSWICK TOWNSHIP BOUND BROOK BOROUGH (*) EAST GREENWICH TOWNSHIP GREEN BROOK TOWNSHIP (*) BRADLEY BEACH BOROUGH (*) GREEN TOWNSHIP (*) NJ ASSOC OF COUNTIES (*) EAST HANOVER TOWNSHIP BRANCHBURG TOWNSHIP GREENWICH TOWNSHIP (CUMBER- NJ SCHOOL BOARDS ASSOCIATION EAST NEWARK BOROUGH BRANCHVILLE BOROUGH (*) LAND) (*) EAST ORANGE CITY BRICK TOWNSHIP GREENWICH TOWNSHIP (GLOUCES- NJ STATE LEAGUE OF MUNICIPALI- EAST RUTHERFORD BOROUGH (*) TER) TIES (*) BRIDGETON CITY EAST WINDSOR TOWNSHIP BRIDGEWATER TWP EASTAMPTON TOWNSHIP (*) GREENWICH TOWNSHIP (WARREN)

*In addition to participating in the retirement system, also participates in the State Health Benefits Program

302 New Jersey Division of Pensions and Benefits STATISTICAL INFORMATION

PARTICIPATING COUNTY AND MUNICIPAL EMPLOYERS, Continued

(*) LAKEHURST BOROUGH (*) MILLSTONE TOWNSHIP (*) PARSIPPANY TROY HILLS TOWNSHIP GUTTENBERG TOWN LAKEWOOD TOWNSHIP MILLTOWN BOROUGH (*) PASSAIC CITY (*) HACKENSACK CITY LAMBERTVILLE CITY (*) MILLVILLE CITY PATERSON CITY HACKETTSTOWN TOWN (*) LAUREL SPRINGS BOROUGH (*) MINE HILL TOWNSHIP (*) PAULSBORO BOROUGH HADDON HEIGHTS BOROUGH (*) LAVALLETTE BOROUGH (*) MONMOUTH BEACH BOROUGH (*) PEAPACK GLADSTONE BOROUGH (*) HADDON TOWNSHIP LAWNSIDE BOROUGH MONROE TOWNSHIP (GLOUCESTER) PEMBERTON BOROUGH (*) HADDONFIELD BOROUGH LAWRENCE TOWNSHIP (CUMBER- MONROE TOWNSHIP (MIDDLESEX) PEMBERTON TOWNSHIP HAINESPORT TOWNSHIP (*) LAND) (*) MONTAGUE TOWNSHIP (*) PENNINGTON BOROUGH (*) HALEDON BOROUGH (*) LAWRENCE TOWNSHIP (MERCER) (*) MONTCLAIR TOWNSHIP (*) PENNS GROVE BOROUGH HAMBURG BOROUGH (*) LEBANON BOROUGH (*) MONTGOMERY TOWNSHIP (*) PENNSAUKEN TOWNSHIP HAMILTON TOWNSHIP (ATLANTIC) (*) LEBANON TOWNSHIP (*) MONTVALE BOROUGH PENNSVILLE TOWNSHIP HAMILTON TOWNSHIP (MERCER) LEONIA BOROUGH (*) MONTVILLE TOWNSHIP (*) PEQUANNOCK TOWNSHIP HAMMONTON TOWN (*) LIBERTY TOWNSHIP (*) MOONACHIE BOROUGH PERTH AMBOY CITY HAMPTON BOROUGH (*) LINCOLN PARK BOROUGH MOORESTOWN TOWNSHIP PHILLIPSBURG TOWN HAMPTON TOWNSHIP (*) LINDEN CITY (*) MORRIS PLAINS BOROUGH (*) PILESGROVE TOWNSHIP (*) HANOVER TOWNSHIP LINDENWOLD BOROUGH (*) MORRIS TOWNSHIP (*) PINE BEACH BOROUGH (*) HARDING TOWNSHIP LINWOOD CITY MORRISTOWN TOWN PINE HILL BOROUGH HARDWICK TOWNSHIP (*) LITTLE EGG HARBOR TOWNSHIP MOUNT ARLINGTON BOROUGH (*) PINE VALLEY BOROUGH (*) HARDYSTON TOWNSHIP LITTLE FALLS TWP (*) MOUNT EPHRAIM BOROUGH PISCATAWAY TOWNSHIP HARMONY TOWNSHIP (*) LITTLE FERRY BOROUGH (*) MOUNT HOLLY TOWNSHIP (*) PITMAN BOROUGH HARRINGTON PARK BOROUGH (*) LITTLE SILVER BOROUGH MOUNT LAUREL TOWNSHIP (*) PITTSGROVE TOWNSHIP (*) HARRISON TOWN (HUDSON) LIVINGSTON TOWNSHIP (*) MOUNT OLIVE TOWNSHIP PLAINFIELD CITY (*) HARRISON TOWNSHIP (GLOUCES- LOCH ARBOUR VILLAGE MOUNTAIN LAKES BOROUGH (*) PLAINSBORO TOWNSHIP TER) (*) LODI BOROUGH MOUNTAINSIDE BOROUGH (*) PLEASANTVILLE CITY (*) HARVEY CEDARS BOROUGH (*) LOGAN TOWNSHIP MULLICA TOWNSHIP (*) PLUMSTED TOWNSHIP HASBROUCK HEIGHTS BOROUGH (*) LONG BEACH TOWNSHIP (*) NATIONAL PARK BOROUGH POHATCONG TOWNSHIP HAWORTH BOROUGH (*) LONG BRANCH CITY NEPTUNE CITY BOROUGH POINT PLEASANT BEACH BOROUGH HAWTHORNE BOROUGH LONG HILL TOWNSHIP (*) NEPTUNE TOWNSHIP POINT PLEASANT BOROUGH HAZLET TOWNSHIP LONGPORT BOROUGH (*) NETCONG BOROUGH (*) POMPTON LAKES BOROUGH (*) HELMETTA BOROUGH (*) LOPATCONG TOWNSHIP NEW BRUNSWICK CITY PORT REPUBLIC CITY (*) HIGH BRIDGE BOROUGH LOWER ALLOWAYS CREEK TOWN- NEW HANOVER TOWNSHIP (*) PRINCETON BOROUGH (*) HIGHLAND PARK BOROUGH (*) SHIP NEW MILFORD BOROUGH PRINCETON TOWNSHIP HIGHLANDS BOROUGH LOWER TOWNSHIP NEW PROVIDENCE BOROUGH PROSPECT PARK BOROUGH (*) HIGHTSTOWN BOROUGH LUMBERTON TOWNSHIP (*) NEWARK CITY QUINTON TOWNSHIP HILLSBOROUGH TOWNSHIP (*) LYNDHURST TOWNSHIP NEWFIELD BOROUGH (*) RAHWAY CITY HILLSDALE BOROUGH MADISON BOROUGH NEWTON TOWN (*) RAMSEY BOROUGH HILLSIDE TOWNSHIP MAGNOLIA BOROUGH NORTH ARLINGTON BOROUGH RANDOLPH TOWNSHIP HI-NELLA BOROUGH MAHWAH TOWNSHIP NORTH BERGEN TOWNSHIP RARITAN BOROUGH (*) HOBOKEN CITY MANALAPAN TOWNSHIP (*) NORTH BRUNSWICK TOWNSHIP (*) RARITAN TOWNSHIP HO-HO-KUS BOROUGH (*) MANASQUAN BOROUGH NORTH CALDWELL BOROUGH (*) READINGTON TOWNSHIP (*) HOLLAND TOWNSHIP (*) MANCHESTER TOWNSHIP NORTH HALEDON BOROUGH (*) RED BANK BOROUGH HOLMDEL TOWNSHIP MANNINGTON TOWNSHIP (*) NORTH HANOVER TOWNSHIP (*) RIDGEFIELD BOROUGH (*) HOPATCONG BOROUGH MANSFIELD TOWNSHIP (BURLING- N. HUNTERDON MUNICIPAL COURT RIDGEFIELD PARK VILLAGE HOPE TOWNSHIP (*) TON) (*) RIDGEWOOD VILLAGE (*) HOPEWELL BOROUGH (*) MANSFIELD TOWNSHIP (WARREN) NORTH PLAINFIELD BOROUGH (*) RINGWOOD BOROUGH HOPEWELL TOWNSHIP (CUMBER- MANTOLOKING BOROUGH (*) NORTH WILDWOOD CITY RIVER EDGE BOROUGH (*) LAND) MANTUA TOWNSHIP (*) NORTHFIELD CITY (*) RIVER VALE TOWNSHIP (*) HOPEWELL TOWNSHIP (MERCER) MANVILLE BOROUGH (*) NORTHVALE BOROUGH (*) RIVERDALE BOROUGH (*) HOWELL TOWNSHIP MAPLE SHADE TOWNSHIP NORWOOD BOROUGH (*) RIVERSIDE TOWNSHIP INDEPENDENCE TWP/ MUN. BLDG (*) MAPLEWOOD TOWNSHIP (*) NUTLEY TOWNSHIP (*) RIVERTON BOROUGH (*) INTERLAKEN BOROUGH MARGATE CITY OAKLAND BOROUGH ROBBINSVILLE TOWNSHIP IRVINGTON TWP DEPT OF REV & MARLBORO TOWNSHIP (*) OAKLYN BOROUGH ROCHELLE PARK TOWNSHIP (*) FINANCE MATAWAN BOROUGH OCEAN CITY ROCKAWAY BOROUGH (*) ISLAND HEIGHTS BOROUGH (*) MAURICE RIVER TOWNSHIP (*) OCEAN GATE BOROUGH (*) ROCKAWAY TOWNSHIP (*) JACKSON TOWNSHIP (*) MAYWOOD BOROUGH OCEAN TOWNSHIP (MONMOUTH) (*) ROCKLEIGH BOROUGH (*) JAMESBURG BOROUGH (*) MEDFORD LAKES BOROUGH (*) OCEAN TOWNSHIP (OCEAN) ROCKY HILL BOROUGH JEFFERSON TOWNSHIP (*) MEDFORD TOWNSHIP (*) OCEANPORT BOROUGH ROOSEVELT BOROUGH (*) JERSEY CITY MENDHAM BOROUGH (*) OGDENSBURG BOROUGH ROSELAND BOROUGH (*) KEANSBURG BOROUGH MENDHAM TOWNSHIP (*) OLD BRIDGE TOWNSHIP ROSELLE BOROUGH KEARNY TOWN (*) MERCHANTVILLE BOROUGH OLD TAPPAN BOROUGH ROSELLE PARK BOROUGH KENILWORTH BOROUGH (*) METUCHEN BOROUGH OLDMANS TOWNSHIP ROXBURY TOWNSHIP KEYPORT BOROUGH MIDDLE TOWNSHIP (*) ORADELL BOROUGH (*) RUMSON BOROUGH (*) KINGWOOD TOWNSHIP (*) MIDDLESEX BOROUGH (*) ORANGE CITY RUNNEMEDE BOROUGH KINNELON BOROUGH MIDDLETOWN TOWNSHIP OXFORD TOWNSHIP (*) RUTHERFORD BOROUGH KNOWLTON TOWNSHIP (*) MIDLAND PARK BOROUGH (*) PALISADES PARK BOROUGH SADDLE BROOK TOWNSHIP LACEY TOWNSHIP (*) MILFORD BOROUGH (*) PALMYRA BOROUGH (*) SADDLE RIVER BOROUGH LAFAYETTE TOWNSHIP (*) MILLBURN TOWNSHIP (*) PARAMUS BOROUGH (*) SALEM CITY (*) LAKE COMO BOROUGH (*) MILLSTONE BOROUGH PARK RIDGE BOROUGH SANDYSTON TOWNSHIP (*)

*In addition to participating in the retirement system, also participates in the State Health Benefits Program

New Jersey Division of Pensions and Benefits 303 STATISTICAL INFORMATION

PARTICIPATING COUNTY AND MUNICIPAL EMPLOYERS, Continued

SAYREVILLE BOROUGH TEWKSBURY TOWNSHIP (*) WEST WINDSOR TOWNSHIP SCOTCH PLAINS TOWNSHIP TINTON FALLS BOROUGH WESTAMPTON TOWNSHIP (*) SEA BRIGHT BORO (*) TOMS RIVER TOWNSHIP WESTFIELD TOWN SEA GIRT BOROUGH (*) TOTOWA BOROUGH (*) WESTVILLE BOROUGH SEA ISLE CITY TRENTON CITY (*) WESTWOOD BOROUGH SEASIDE HEIGHTS BOROUGH (*) TUCKERTON BOROUGH (*) WEYMOUTH TOWNSHIP (*) SEASIDE PARK BOROUGH (*) UNION BEACH BOROUGH (*) WHARTON BOROUGH (*) SECAUCUS TOWN UNION CITY WHITE TOWNSHIP (*) SHAMONG TOWNSHIP (*) UNION TOWNSHIP (HUNTERDON) (*) WILDWOOD CITY (*) SHILOH BOROUGH UNION TOWNSHIP (UNION) WILDWOOD CREST BOROUGH (*) SHIP BOTTOM BOROUGH UPPER DEERFIELD TOWNSHIP (*) WILLINGBORO TOWNSHIP SHREWSBURY BOROUGH UPPER FREEHOLD TOWNSHIP (*) WINFIELD TOWNSHIP (*) SHREWSBURY TOWNSHIP UPPER PITTSGROVE TOWNSHIP (*) WINSLOW TOWNSHIP SOMERDALE BOROUGH (*) UPPER SADDLE RIVER BORO (*) WOODBINE BOROUGH (*) SOMERS POINT CITY UPPER TOWNSHIP WOODBRIDGE TOWNSHIP SOMERVILLE BOROUGH (*) VENTNOR CITY WOODBURY CITY SOUTH AMBOY CITY VERNON TOWNSHIP WOODBURY HEIGHTS BOROUGH (*) SOUTH BOUND BROOK BOROUGH VERONA TOWNSHIP (*) WOODCLIFF LAKE BOROUGH (*) (*) VICTORY GARDENS BOROUGH WOODLAND TOWNSHIP (*) SOUTH BRUNSWICK TOWNSHIP (*) VINELAND CITY WOODLYNNE BOROUGH (*) SOUTH HACKENSACK TOWNSHIP VOORHEES TOWNSHIP (*) WOOD-RIDGE BOROUGH SOUTH HARRISON TOWNSHIP WALDWICK BOROUGH (*) WOODSTOWN BOROUGH (*) SOUTH ORANGE VILLAGE (*) WALL TOWNSHIP WOOLWICH TOWNSHIP SOUTH PLAINFIELD BOROUGH WALLINGTON BOROUGH WRIGHTSTOWN BOROUGH (*) SOUTH RIVER BOROUGH (*) WALLPACK TOWNSHIP WYCKOFF TOWNSHIP (*) SOUTH TOMS RIVER BOROUGH (*) WANAQUE BOROUGH SOUTHAMPTON TOWNSHIP (*) WANTAGE TOWNSHIP SPARTA TOWNSHIP WARREN TOWNSHIP (*) SPOTSWOOD BOROUGH (*) WASHINGTON BOROUGH (*) SPRING LAKE BOROUGH (*) WASHINGTON TOWNSHIP (BERGEN) SPRING LAKE HEIGHTS BOROUGH (*) (*) WASHINGTON TWP (BURLINGTON) SPRINGFIELD TOWNSHIP (UNION) WASHINGTON TWP (GLOUCESTER) SPRINGFIELD TWP (BURLINGTON) (*) WASHINGTON TWP (MORRIS) STAFFORD TOWNSHIP WASHINGTON TWP (WARREN) STANHOPE BOROUGH (*) WATCHUNG BOROUGH (*) STILLWATER TOWNSHIP (*) WATERFORD TOWNSHIP (*) STOCKTON BOROUGH WAYNE TOWNSHIP STONE HARBOR BOROUGH WEEHAWKEN TOWNSHIP (*) STOW CREEK TOWNSHIP WENONAH BOROUGH STRATFORD BOROUGH (*) WEST AMWELL TOWNSHIP (*) SUMMIT CITY (*) WEST CALDWELL TOWNSHIP SURF CITY BOROUGH WEST CAPE MAY BOROUGH (*) SUSSEX BOROUGH (*) WEST DEPTFORD TOWNSHIP SWEDESBORO BOROUGH WEST LONG BRANCH BOROUGH TABERNACLE TOWNSHIP (*) WEST MILFORD TOWNSHIP TAVISTOCK BOROUGH WEST NEW YORK TOWN TEANECK TOWNSHIP (*) WEST ORANGE TOWNSHIP (*) TENAFLY BOROUGH (*) WEST PATERSON BOROUGH TETERBORO BOROUGH (*) WEST WILDWOOD BOROUGH (*)

*In addition to participating in the retirement system, also participates in the State Health Benefits Program

304 New Jersey Division of Pensions and Benefits STATISTICAL INFORMATION

STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS PARTICIPATING EDUCATION EMPLOYERS

ATLANTIC CO AUDIO VISUAL AIDS COMMISSION (*) BROOKLAWN BORO BOARD OF EDUCATION (*) BURLINGTON CO AUDIO VISUAL AIDS COMMIS- BUENA REGIONAL SCHOOL DISTRICT EAST ORANGE CITY BOARD OF EDUCATION (*) SION (*) BURLINGTON CITY BOARD OF EDUCATION EAST RUTHERFORD BORO BOARD OF EDUCA- GLOUCESTER CO AUDIO VISUAL AID COMMIS- BURLINGTON TWP BOARD OF EDUCATION TION SION (*) BUTLER BORO BOARD OF EDUCATION EAST WINDSOR REGIONAL SCHOOL DIST MORRIS AUDIO VISUAL COMMISSION BYRAM TWP BOARD OF EDUCATION EASTAMPTON TOWNSHIP BOARD OF EDUCATION OCEAN CO AUDIO VISUAL AIDS COMMISSION (*) CALDWELL WEST CALDWELL BOARD OF EDUCA- EASTERN CAMDEN CO REGIONAL SCHOOL DIS- WARREN CO AUDIO VISUAL AIDS TION (*) TRICT CALIFON BORO BOARD OF EDUCATION (*) EATONTOWN BOARD OF EDUCATION (*) ABSECON BOARD OF EDUCATION CAMDEN CITY BOARD OF EDUCATION (*) EDGEWATER BORO BOARD OF EDUCATION ALEXANDRIA TWP BOARD OF EDUCATION CAPE MAY CITY BOARD OF EDUCATION (*) EDGEWATER PARK TWP BOARD OF EDUCATION ALLAMUCHY BOARD OF EDUCATION CAPE MAY PT BORO BOARD OF EDUCATION (*) ALLENDALE BORO BOARD OF EDUCATION CARLSTADT BOROUGH BOARD OF EDUCATION EDISON TWP BOARD OF EDUCATION ALLENHURST BOARD OF EDUCATION (*) CARLSTADT EAST RUTHERFORD BOARD OF EDU- EGG HARBOR CITY BOARD OF EDUCATION (*) ALLOWAY TWP BOARD OF EDUCATION CATION EGG HARBOR TWP BOARD OF EDUCATION ALPHA BOARD OF EDUCATION (*) CARTERET BOARD OF EDUCATION ELIZABETH BOARD OF EDUCATION (*) ALPINE BOARD OF EDUCATION (*) CEDAR GROVE TWP BOARD OF EDUCATION ELK TWP BOARD OF EDUCATION ANDOVER REGIONAL BOARD OF EDUCATION (*) CENTRAL REGIONAL HIGH SCHOOL DISTRICT ELMER BOARD OF EDUCATION ASBURY PARK BOARD OF EDUCATION (*) CHATHAMS SCHOOL DISTRICT ELMWOOD PARK BOROUGH BOARD OF EDUCA- ATLANTIC CITY BOARD OF EDUCATION CHERRY HILL TWP BOARD OF EDUCATION TION (*) ATLANTIC HIGHLANDS BOARD OF EDUCATION (*) CHESILHURST BORO BOARD OF EDUCATION (*) ELSINBORO TOWNSHIP BOARD OF EDUCATION (*) AUDUBON BOROUGH BOARD OF EDUCATION CHESTER TWP BOARD OF EDUCATION EMERSON BOROUGH BOARD OF EDUCATION (*) AVALON BOROUGH BOARD OF EDUCATION CHESTERFIELD TWP BOARD OF EDUCATION (*) ENGLEWOOD CITY BOARD OF EDUCATION (*) AVON BY THE SEA BORO BOARD OF EDUCATION CINNAMINSON TWP BOARD OF EDUCATION ENGLEWOOD CLIFFS BOARD OF EDUCATION (*) (*) CLARK TWP BOARD OF EDUCATION ESSEX FELLS BOARD OF EDUCATION BARNEGAT TWP BOARD OF EDUCATION CLAYTON BOROUGH BOARD OF EDUCATION ESTELL MANOR BOARD OF EDUCATION (*) BARRINGTON BORO BOARD OF EDUCATION (*) CLEARVIEW REGIONAL BOARD OF EDUCATION EVESHAM TWP BOARD OF EDUCATION BASS RIVER TWP BOARD OF EDUCATION (*) CLEMENTON BOARD OF EDUCATION EWING TOWNSHIP BOARD OF EDUCATION (*) BAY HEAD BOARD OF EDUCATION CLIFFSIDE PARK BOARD OF EDUCATION FAIR HAVEN BOROUGH BOARD OF EDUCATION BAYONNE BOARD OF EDUCATION CLIFTON CITY BOARD OF EDUCATION FAIR LAWN BOARD OF EDUCATION BEACH HAVEN BOROUGH BOARD OF EDUCATION CLINTON TOWN BOARD OF EDUCATION FAIRFIELD TWP BD OF EDUCATION (CUMBER- (*) CLINTON TWP BOARD OF EDUCATION LAND) (*) BEDMINSTER TWP BOARD OF EDUCATION CLOSTER BOARD OF EDUCATION (*) FAIRFIELD TWP BOARD OF EDUCATION (ESSEX) BELLEVILLE BOARD OF EDUCATION COLLINGSWOOD BOROUGH BOARD OF EDUCA- FAIRVIEW BORO BOARD OF EDUCATION (*) BELLMAWR BOROUGH BOARD OF EDUCATION (*) TION FARMINGDALE BOARD OF EDUCATION (*) BELMAR BORO BOARD OF EDUCATION COLTS NECK TWP BOARD OF EDUCATION FLEMINGTON RARITAN BOARD OF EDUCATION BELVIDERE TOWN BOARD OF EDUCATION COMMERCIAL TWP BOARD OF EDUCATION FLORENCE TOWNSHIP BOARD OF EDUCATION BERGENFIELD BOARD OF EDUCATION (*) CORBIN CITY BOARD OF EDUCATION (*) FLORHAM PARK BOARD OF EDUCATION (*) BERKELEY HEIGHTS BOARD OF EDUCATION CRANBURY TOWNSHIP BOARD OF EDUCATION FOLSOM BOROUGH BOARD OF EDUCATION (*) BERKELEY TWP BOARD OF EDUCATION CRANFORD TWP BOARD OF EDUCATION (*) FORT LEE BOARD OF EDUCATION BERLIN BOROUGH BOARD OF EDUCATION CRESSKILL BOARD OF EDUCATION FRANKFORD TOWNSHIP BOARD OF EDUCATION BERLIN TOWNSHIP BOARD OF EDUCATION CUMBERLAND REGIONAL SCHOOL DIST FRANKLIN BORO BOARD OF EDUCATION (*) BERNARDS TWP BOARD OF EDUCATION DEAL BORO BOARD OF EDUCATION (*) FRANKLIN LAKES BOARD OF EDUCATION BETHLEHEM TWP BOARD OF EDUCATION DEERFIELD TOWNSHIP BOARD OF EDUCATION FRANKLIN TWP BOARD OF EDUCATION BEVERLY CITY BOARD OF EDUCATION (*) DELANCO TWP BOARD OF EDUCATION (GLOUCESTER) BLACK HORSE PIKE REGIONAL SCHOOL DISTRICT DELAWARE TWP BOARD OF EDUCATION (*) FRANKLIN TWP BOARD OF EDUCATION (SOMER- BLAIRSTOWN TWP BOARD OF EDUCATION DELAWARE VALLEY REGIONAL HIGH SCHOOL DIS- SET) BLOOMFIELD TWP BOARD OF EDUCATION TRICT FRANKLIN TWP BOARD OF EDUCATION (WARREN) BLOOMINGDALE BOARD OF EDUCATION DELRAN TWP BOARD OF EDUCATION FRANKLIN TWP BOARD OF EDUCATION HUNTER- BLOOMSBURY BOROUGH BOARD OF EDUCATION DELSEA REGIONAL HIGH SCHOOL DISTRICT DON) (*) DEMAREST BORO BOARD OF EDUCATION (*) FREDON TOWNSHIP BOARD OF EDUCATION BOGOTA BORO BOARD OF EDUCATION (*) DENNIS TWP BOARD OF EDUCATION FREEHOLD BORO BOARD OF EDUCATION BOONTON TOWN BOARD OF EDUCATION DENVILLE TWP BOARD OF EDUCATION FREEHOLD REGIONAL HIGH SCHOOL DISTRICT BOONTON TWP BOARD OF EDUCATION DEPTFORD TWP BOARD OF EDUCATION FREEHOLD TWP BOARD OF EDUCATION BORDENTOWN REGIONAL SCHOOL DISTRICT (*) DOVER BOARD OF EDUCATION FRELINGHUYSEN TWP BOARD OF EDUCATION BOUND BROOK BORO BOARD OF EDUCATION DOWNE TWP BOARD OF EDUCATION FRENCHTOWN BOROUGH BOARD OF EDUCATION (*) BRADLEY BEACH BOARD OF EDUCATION DUMONT BOROUGH BOARD OF EDUCATION GALLOWAY TOWNSHIP BOARD OF EDUCATION BRANCHBURG TWP BOARD OF EDUCATION DUNELLEN BOARD OF EDUCATION GARFIELD CITY BOARD OF EDUCATION (*) BRANCHVILLE BOARD OF EDUCATION EAGLESWOOD TWP BOARD OF EDUCATION (*) GARWOOD BOROUGH BOARD OF EDUCATION BRICK TWP BOARD OF EDUCATION EAST AMWELL TOWNSHIP BOARD OF EDUCATION BRIDGETON BOARD OF EDUCATION (*) GATEWAY REGIONAL HIGH SCHOOL BRIDGEWATER-RARITAN REGIONAL SCHOOL DIS- EAST BRUNSWICK TWP BOARD OF EDUCATION GIBBSBORO BOROUGH BOARD OF EDUCATION TRICT EAST GREENWICH BOARD OF EDUCATION (*) GLASSBORO BOARD OF EDUCATION BRIELLE BORO BOARD OF EDUCATION EAST HANOVER TWP BOARD OF EDUCATION (*) GLEN RIDGE BOARD OF EDUCATION BRIGANTINE CITY BOARD OF EDUCATION (*) EAST NEWARK BOROUGH BOARD OF EDUCATION GLEN ROCK BOROUGH BOARD OF EDUCATION (*)

*In addition to participating in the retirement system, also participates in the State Health Benefits Program

New Jersey Division of Pensions and Benefits 305 STATISTICAL INFORMATION

PARTICIPATING EDUCATION EMPLOYERS, Continued

GLOUCESTER CITY BOARD OF EDUCATION (*) JACKSON TOWNSHIP BOARD OF EDUCATION (BURLINGTON) GLOUCESTER TWP BOARD OF EDUCATION JAMESBURG BOROUGH BOARD OF EDUCATION MANSFIELD TWP BOARD OF EDUCATION (WAR- GREAT MEADOWS REGIONAL BOARD OF EDUCA- (*) REN) TION JEFFERSON TOWNSHIP BOARD OF EDUCATION MANTOLOKING BORO BOARD OF EDUCATION GREATER EGG HARBOR REGIONAL JERSEY CITY PUBLIC SCHOOLS (*) MANTUA TOWNSHIP BOARD OF EDUCATION GREEN BROOK BOARD OF EDUCATION KEANSBURG BOARD OF EDUCATION MANVILLE BOROUGH BOARD OF EDUCATION GREEN TOWNSHIP BOARD OF EDUCATION KEARNY TOWN BOARD OF EDUCATION MAPLE SHADE BOARD OF EDUCATION GREENWICH TWP BD OF EDUCATION (CUMBER- KENILWORTH BOROUGH BOARD OF EDUCATION MARGATE CITY BOARD OF EDUCATION (*) LAND) (*) KEYPORT BOROUGH BOARD OF EDUCATION MARLBORO TOWNSHIP BOARD OF EDUCATION GREENWICH TWP BOARD OF EDUCATION KINGSWAY REGIONAL SCHOOL DISTRICT MATAWAN-ABERDEEN REGIONAL SCHOOL (GLOUCESTER) KINGWOOD TOWNSHIP BOARD OF EDUCATION MAURICE RIVER TOWNSHIP BOARD OF EDUCA- GREENWICH TWP BOARD OF EDUCATION (WAR- KINNELON BOROUGH BOARD OF EDUCATION TION REN) KITTATINNY REGIONAL HIGH SCHOOL MAYWOOD BOARD OF EDUCATION GUTTENBERG BORO BOARD OF EDUCATION KNOWLTON TWP BOARD OF EDUCATION MEDFORD LAKES BORO BOARD OF EDUCATION HACKENSACK CITY BOARD OF EDUCATION (*) LACEY TOWNSHIP BOARD OF EDUCATION (*) MEDFORD TOWNSHIP BOARD OF EDUCATION HACKETTSTOWN BOARD OF EDUCATION LAFAYETTE TWP BOARD OF EDUCATION MENDHAM BORO BOARD OF EDUCATION (*) HADDON HEIGHTS BOARD OF EDUCATION LAKEHURST BOROUGH BOARD OF EDUCATION MENDHAM TOWNSHIP BOARD OF EDUCATION HADDON TOWNSHIP BOARD OF EDUCATION LAKELAND REGIONAL HIGH SCHOOL DISTRICT MERCHANTVILLE BORO BOARD OF EDUCATION (*) HADDONFIELD BOARD OF EDUCATION LAKEWOOD TWP BOARD OF EDUCATION (*) METUCHEN BORO BOARD OF EDUCATION HAINESPORT TOWNSHIP BOARD OF EDUCATION LAMBERTVILLE CITY BOARD OF EDUCATION (*) MIDDLE TOWNSHIP BOARD OF EDUCATION (*) HALEDON BOROUGH BOARD OF EDUCATION (*) LAUREL SPRINGS BOROUGH BOARD OF EDUCA- MIDDLESEX BOARD OF EDUCATION HAMBURG BOROUGH BOARD OF EDUCATION TION MIDDLETOWN TWP BOARD OF EDUCATION HAMILTON TWP BOARD OF EDUCATION LAVALLETTE BOROUGH BOARD OF EDUCATION MIDLAND PARK BORO BOARD OF EDUCATION (*) (ATLANTIC) LAWNSIDE BOROUGH BOARD OF EDUCATION MILFORD BOROUGH BOARD OF EDUCATION (*) HAMILTON TWP BOARD OF EDUCATION (MERCER) LAWRENCE TWP BOARD OF EDUCATION (CUM- MILLBURN TWP PUBLIC SCHOOLS HAMMONTON TOWN BOARD OF EDUCATION BERLAND) MILLSTONE BOROUGH BOARD OF EDUCATION HAMPTON BOROUGH BOARD OF EDUCATION (*) LAWRENCE TWP BOARD OF EDUCATION (MER- MILLSTONE TOWNSHIP BOARD OF EDUCATION HAMPTON TOWNSHIP BOARD OF EDUCATION (*) CER) MILLTOWN BOROUGH BOARD OF EDUCATION HANOVER PARK REGIONAL HIGH SCHOOL DIS- LEBANON BOROUGH BOARD OF EDUCATION (*) MILLVILLE BOARD OF EDUCATION TRICT (*) LEBANON TOWNSHIP BOARD OF EDUCATION MINE HILL TWP BOARD OF EDUCATION (*) HANOVER TOWNSHIP BOARD OF EDUCATION (*) LENAPE REGIONAL HIGH SCHOOL DISTRICT MONMOUTH BEACH BOARD OF EDUCATION (*) HARDING TOWNSHIP BOARD OF EDUCATION LENAPE VALLEY REGIONAL HIGH SCHOOL DIS- MONMOUTH REGIONAL SCHOOL HARDWICK TWP BOARD OF EDUCATION TRICT MONROE TWP BOARD OF EDUCATION (GLOUCES- HARDYSTON TOWNSHIP BOARD OF EDUCATION LEONIA BOROUGH BOARD OF EDUCATION TER) HARMONY TOWNSHIP BOARD OF EDUCATION (*) LINCOLN PARK BORO BOARD OF EDUCATION MONROE TWP BOARD OF EDUCATION (MIDDLE- HARRINGTON PARK BOARD OF EDUCATION LINDEN CITY BOARD OF EDUCATION SEX) HARRISON TOWN BOARD OF EDUCATION (HUD- LINDENWOLD BOROUGH BOARD OF EDUCATION MONTAGUE BOARD OF EDUCATION SON) LINWOOD BOARD OF EDUCATION (*) MONTCLAIR BOARD OF EDUCATION HARRISON TWP BOARD OF EDUCATION LITTLE EGG HARBOR TWP BOARD OF EDUCATION MONTGOMERY TWP BOARD OF EDUCATION (GLOUCESTER) LITTLE FALLS BOARD OF EDUCATION MONTVALE BOROUGH BOARD OF EDUCATION (*) HASBROUCK HEIGHTS BOARD OF EDUCATION LITTLE FERRY BOARD OF EDUCATION (*) MONTVILLE TWP BOARD OF EDUCATION HAWORTH BOROUGH BOARD OF EDUCATION (*) LITTLE SILVER BOARD OF EDUCATION MOONACHIE BOROUGH BOARD OF EDUCATION HAWTHORNE BOARD OF EDUCATION LIVINGSTON BOARD OF EDUCATION MOORESTOWN TOWNSHIP BOARD OF EDUCA- HAZLET TWP BOARD OF EDUCATION LODI BOARD OF EDUCATION TION (*) HELMETTA BORO BOARD OF EDUCATION (*) LOGAN TOWNSHIP BOARD OF EDUCATION MORRIS HILLS REGIONAL DISTRICT HENRY HUDSON REGIONAL SCHOOL DISTRICT LONG BEACH ISLAND BOARD OF EDUCATION (*) MORRIS PLAINS BOARD OF EDUCATION HIGH BRIDGE BOROUGH BOARD OF EDUCATION LONG BRANCH BOARD OF EDUCATION MORRIS SCHOOL DISTRICT HIGH POINT REGIONAL HIGH SCHOOL LONG HILL TWP BOARD OF EDUCATION MOUNT ARLINGTON BOARD OF EDUCATION HIGHLAND PARK BOARD OF EDUCATION LONGPORT BOROUGH BOARD OF EDUCATION (*) MOUNT EPHRAIM BOARD OF EDUCATION HIGHLANDS BORO BOARD OF EDUCATION LOPATCONG TOWNSHIP BOARD OF EDUCATION MOUNT HOLLY TWP BOARD OF EDUCATION HILLSBOROUGH TWP BOARD OF EDUCATION LOWER ALLOWAYS CREEK BOARD OF EDUCA- MOUNT LAUREL TWP BOARD OF EDUCATION HILLSDALE BOROUGH BOARD OF EDUCATION (*) TION (*) MOUNT OLIVE TWP BOARD OF EDUCATION HILLSIDE BOARD OF EDUCATION LOWER CAPE MAY REGIONAL SCHOOL DISTRICT MOUNTAIN LAKES BORO BOARD OF EDUCATION HOBOKEN BOARD OF EDUCATION (*) (*) HO-HO-KUS BOARD OF EDUCATION (*) LOWER TOWNSHIP BOARD OF EDUCATION (*) MOUNTAINSIDE BORO BOARD OF EDUCATION (*) HOLLAND TWP BOARD OF EDUCATION LUMBERTON TWP BOARD OF EDUCATION MULLICA TWP BOARD OF EDUCATION (*) HOLMDEL TOWNSHIP BOARD OF EDUCATION (*) LYNDHURST TWP BOARD OF EDUCATION NATIONAL PARK BOROUGH BOARD OF EDUCA- HOPATCONG BOARD OF EDUCATION MADISON BORO BOARD OF EDUCATION TION HOPE TWP BOARD OF EDUCATION (*) MAGNOLIA BOROUGH BOARD OF EDUCATION NEPTUNE CITY BOARD OF EDUCATION HOPEWELL TWP BOARD OF EDUCATION (CUM- MAHWAH BOARD OF EDUCATION NEPTUNE TWP BOARD OF EDUCATION BERLAND) MAINLAND REGIONAL HIGH SCHOOL (*) NETCONG BOROUGH BOARD OF EDUCATION HOPEWELL VALLEY REGIONAL SCHOOL DISTRICT MANALAPAN ENGLISHTOWN REGIONAL SCHOOLS NEW BRUNSWICK BOARD OF EDUCATION HOWELL TWP BOARD OF EDUCATION (*) NEW HANOVER TWP BOARD OF EDUCATION HUNTERDON CENTRAL HIGH SCHOOL MANASQUAN BOROUGH BOARD OF EDUCATION NEW MILFORD BOARD OF EDUCATION INTERLAKEN BOROUGH BOARD OF EDUCATION MANCHESTER TOWNSHIP BOARD OF EDUCATION NEW PROVIDENCE BOARD OF EDUCATION IRVINGTON BOARD OF EDUCATION MANNINGTON TOWNSHIP BOARD OF EDUCATION NEWARK PUBLIC SCHOOLS (*) ISLAND HEIGHTS BORO BOARD OF EDUCATION (*) MANSFIELD TWP BOARD OF EDUCATION NEWTON BOARD OF EDUCATION

*In addition to participating in the retirement system, also participates in the State Health Benefits Program

306 New Jersey Division of Pensions and Benefits STATISTICAL INFORMATION

PARTICIPATING EDUCATION EMPLOYERS, Continued

NORTH ARLINGTON BOARD OF EDUCATION POINT PLEASANT BORO BOARD OF EDUCATION SOUTH HACKENSACK BOARD OF EDUCATION (*) NORTH BERGEN BOARD OF EDUCATION (*) POMPTON LAKES BOARD OF EDUCATION SOUTH HARRISON TWP BOARD OF EDUCATION NORTH BRUNSWICK BOARD OF EDUCATION PORT REPUBLIC CITY BOARD OF EDUCATION (*) SOUTH HUNTERDON REGIONAL BD OF EDUCA- NORTH CALDWELL BOARD OF EDUCATION PRINCETON REGIONAL SCHOOL TION (*) NORTH HALEDON BORO BOARD OF EDUCATION PROSPECT PARK BOARD OF EDUCATION (*) SOUTH ORANGE-MAPLEWOOD BOARD OF EDU- (*) QUINTON TOWNSHIP BOARD OF EDUCATION (*) CATION (*) NORTH HANOVER TOWNSHIP BOARD OF EDUCA- RAHWAY CITY BOARD OF EDUCATION (*) SOUTH PLAINFIELD BOARD OF EDUCATION TION RAMAPO INDIAN HILLS REG HIGH SCHOOL DIS- SOUTH RIVER BORO BOARD OF EDUCATION NORTH HUNTERDON-VOORHEES TRICT SOUTHAMPTON TWP BOARD OF EDUCATION NORTH PLAINFIELD BOARD OF EDUCATION RAMSEY BOROUGH BOARD OF EDUCATION SOUTHERN REGIONAL HIGH SCHOOL DISTRICT NORTH WARREN REGIONAL HIGH SCHOOL RANCOCAS VALLEY REGIONAL HIGH SCHOOL SPARTA BOARD OF EDUCATION NORTH WILDWOOD BOARD OF EDUCATION (*) RANDOLPH TOWNSHIP BOARD OF EDUCATION SPOTSWOOD BOARD OF EDUCATION NORTHERN BURLINGTON CO REGIONAL READINGTON TWP BOARD OF EDUCATION SPRING LAKE BORO BOARD OF EDUCATION NORTHERN HIGHLANDS REGIONAL HIGH SCHOOL RED BANK BOARD OF EDUCATION (*) SPRING LAKE HEIGHTS BOARD OF EDUCATION (*) RED BANK REGIONAL HIGH SCHOOL DISTRICT SPRINGFIELD TWP BOARD OF EDUCATION NORTHERN VALLEY REGIONAL HIGH SCHOOL RIDGEFIELD BORO BOARD OF EDUCATION (*) (UNION) DISTRICT RIDGEFIELD PARK BOARD OF EDUCATION (*) SPRINGFIELD TWP BOARD OF EDUCATION NORTHFIELD BOARD OF EDUCATION RIDGEWOOD TWP BOARD OF EDUCATION (BURLINGTON) NORTHVALE BOARD OF EDUCATION (*) RINGWOOD BORO BOARD OF EDUCATION (*) STAFFORD TOWNSHIP BOARD OF EDUCATION NORWOOD BOARD OF EDUCATION (*) RIVER DELL REGIONAL SCHOOL DISTRICT (*) STANHOPE BOROUGH BOARD OF EDUCATION NUTLEY BOARD OF EDUCATION RIVER EDGE BORO BOARD OF EDUCATION STERLING HIGH SCHOOL DISTRICT OAKLAND BOARD OF EDUCATION RIVER VALE TWP BOARD OF EDUCATION STILLWATER TOWNSHIP BOARD OF EDUCATION (*) OAKLYN BOROUGH BOARD OF EDUCATION RIVERDALE BOROUGH BOARD OF EDUCATION (*) STOCKTON BOROUGH BOARD OF EDUCATION (*) OCEAN CITY BOARD OF EDUCATION RIVERSIDE TOWNSHIP BOARD OF EDUCATION STONE HARBOR BOARD OF EDUCATION (*) OCEAN GATE BOARD OF EDUCATION (*) RIVERTON BORO SCHOOL BOARD STOW CREEK TOWNSHIP BOARD OF EDUCATION OCEAN TWP BOARD OF EDUCATION (MONMOUTH) ROBBINSVILLE TWP BOARD OF EDUCATION STRATFORD BOARD OF EDUCATION OCEAN TWP BOARD OF EDUCATION (OCEAN) (*) ROCHELLE PARK TWP BOARD OF EDUCATION (*) SUMMIT BOARD OF EDUCATION OCEANPORT SCHOOLS ROCKAWAY BOROUGH BOARD OF EDUCATION (*) SUSSEX-WANTAGE REGIONAL SCHOOL DISTRICT OGDENSBURG BOARD OF EDUCATION ROCKAWAY TOWNSHIP BOARD OF EDUCATION SWEDESBORO WOOLWICH BOARD OF EDUCA- OLD BRIDGE BOARD OF EDUCATION ROCKLEIGH BOROUGH BOARD OF ED TION OLD TAPPAN BOARD OF EDUCATION ROCKY HILL BOARD OF EDUCATION TABERNACLE TWP BOARD OF EDUCATION OLDMANS TWP BOARD OF EDUCATION ROOSEVELT BOROUGH BOARD OF EDUCATION (*) TEANECK BOARD OF EDUCATION (*) ORADELL BOARD OF EDUCATION ROSELAND BOARD OF EDUCATION TENAFLY BOARD OF EDUCATION (*) ORANGE CITY BOARD OF EDUCATION (*) ROSELLE BORO BOARD OF EDUCATION TEWKSBURY TWP BOARD OF EDUCATION OXFORD TWP BOARD OF EDUCATION ROSELLE PARK BORO BOARD OF EDUCATION TINTON FALLS BOARD OF EDUCATION (*) PALISADES PARK BOARD OF EDUCATION ROXBURY TWP BOARD OF EDUCATION TOMS RIVER SCHOOL DISTRICT PALMYRA BOROUGH BOARD OF EDUCATION RUMSON BORO BOARD OF EDUCATION TOTOWA BOROUGH BOARD OF EDUCATION (*) PARAMUS BOARD OF EDUCATION RUMSON FAIR HAVEN REGIONAL HIGH SCHOOL TRENTON CITY BOARD OF EDUCATION PARK RIDGE BORO BOARD OF EDUCATION RUNNEMEDE BOROUGH BOARD OF EDUCATION TUCKERTON BORO BOARD OF EDUCATION PARSIPPANY TROY HILLS BOARD OF EDUCATION RUTHERFORD BORO BOARD OF EDUCATION UNION BEACH BORO BOARD OF EDUCATION PASCACK VALLEY REGIONAL HIGH SCHOOL DIS- SADDLE BROOK BOARD OF EDUCATION (*) UNION CITY BOARD OF EDUCATION TRICT (*) SADDLE RIVER BOARD OF EDUCATION (*) UNION TWP BOARD OF EDUCATION (UNION) PASSAIC BOARD OF EDUCATION (*) SALEM CITY BOARD OF EDUCATION UNION TWP OF ED (HUNTERDON) PASSAIC CO MANCHESTER REGIONAL HIGH (*) SANDYSTON WALPACK SCHOOL DIST (*) UPPER DEERFIELD TWP BOARD OF EDUCATION PASSAIC CO REGIONAL HIGH SCHOOL DISTRICT 1 SAYREVILLE BOARD OF EDUCATION SELOVER UPPER FREEHOLD REGIONAL (*) ELM UPPER PITTSGROVE TWP BOARD OF EDUCATION PATERSON BOARD OF EDUCATION (*) SCOTCH PLAINS FANWOOD BOARD OF EDUCA- UPPER SADDLE RIVER BOARD OF EDUCATION (*) PAULSBORO BORO BOARD OF EDUCATION TION UPPER TOWNSHIP BOARD OF EDUCATION PEMBERTON BOROUGH BOARD OF EDUCATION SEA BRIGHT BORO BOARD OF EDUCATION (*) VENTNOR CITY BOARD OF EDUCATION PEMBERTON TOWNSHIP BOARD OF EDUCATION SEA GIRT BOARD OF EDUCATION (*) VERNON TOWNSHIP BOARD OF EDUCATION PENNS GROVE CARNEYS POINT REGIONAL SEA ISLE CITY BOARD OF EDUCATION (*) VERONA BOARD OF EDUCATION PENNSAUKEN TWP BOARD OF EDUCATION SEASIDE HEIGHTS BOARD OF EDUCATION VICTORY GARDENS BORO BOARD OF EDUCATION PENNSVILLE TWP BOARD OF EDUCATION SEASIDE PARK BOARD OF EDUCATION (*) (*) PEQUANNOCK TWP BOARD OF EDUCATION SECAUCUS TOWN BOARD OF EDUCATION VINELAND CITY BOARD OF EDUCATION PERTH AMBOY BOARD OF EDUCATION SHAMONG TWP BOARD OF EDUCATION VOORHEES TWP BOARD OF EDUCATION PHILLIPSBURG TOWN BOARD OF EDUCATION SHILOH BOROUGH BOARD OF EDUCATION WALDWICK BORO BOARD OF EDUCATION (*) PINE HILL BOROUGH BOARD OF EDUCATION SHORE REGIONAL HIGH SCHOOL DISTRICT WALL TOWNSHIP BOARD OF EDUCATION PINELANDS REGIONAL SCHOOL DISTRICT (*) SHREWSBURY BOROUGH BOARD OF EDUCATION WALLINGTON BOROUGH BOARD OF EDUCATION PISCATAWAY BOARD OF EDUCATION ADMN BLDG SOMERDALE BORO BOARD OF EDUCATION (*) PITMAN BOARD OF EDUCATION SOMERS POINT CITY BOARD OF EDUCATION WALLKILL VALLEY REGIONAL HIGH SCHOOL PITTSGROVE TWP BOARD OF EDUCATION SOMERSET HILLS BOARD OF EDUCATION WANAQUE BOARD OF EDUCATION PLAINFIELD BOARD OF EDUCATION SOMERVILLE BOARD OF EDUCATION WARREN HILLS REGIONAL SCHOOLS PLEASANTVILLE BOARD OF EDUCATION SOUTH AMBOY BOARD OF EDUCATION WARREN TOWNSHIP BOARD OF EDUCATION PLUMSTED TWP BOARD OF EDUCATION SOUTH BELMAR BOARD OF EDUCATION WASHINGTON BORO BOARD OF EDUCATION POHATCONG TWP BOARD OF EDUCATION SOUTH BOUND BROOK BOARD OF EDUCATION WASHINGTON TWP BOARD OF EDUCATION (MOR- RIS) POINT PLEASANT BEACH BOARD OF EDUCATION SOUTH BRUNSWICK BOARD OF EDUCATION (*)

*In addition to participating in the retirement system, also participates in the State Health Benefits Program 1Reporting authority only per N.J.S.A. 18A:66-14.2

New Jersey Division of Pensions and Benefits 307 STATISTICAL INFORMATION

PARTICIPATING EDUCATION EMPLOYERS, Continued

WASHINGTON TWP BOARD OF EDUCATION (WAR- WARREN COUNTY COMMUNITY COLLEGE (*) QUEEN CITY ACADEMY CHARTER SCHOOL REN) RED BANK CHARTER SCHOOL WASHINGTON TWP BOARD OF EDUCATION (BURL) ACADEMY FOR URBAN LEADERSHIP RENAISSANCE REGIONAL LEADERSHIP CHARTER (*) ACADEMY CHARTER HIGH SCHOOL SCHOOL WASHINGTON TWP BOARD OF EDUCATION ADELAIDE SANFORD CHARTER SCHOOL RIDGE AND VALLEY CHARTER SCHOOL (GLOUCESTER) BARACK OBAMA GREEN CHARTER HIGH SCHOOL RIVERBANK CHARTER SCHOOL OF EXCELLENCE WATCHUNG BOROUGH BOARD OF EDUCATION BERGEN ARTS AND SCIENCE CHARTER SCHOOL ROBERT TREAT ACADEMY CHARTER SCHOOL WATCHUNG HILLS REGIONAL HIGH SCHOOL BURCH CHARTER SCHOOL FOR EXCELLENCE ROSEVILLE COMMUNITY CHARTER SCHOOL WATERFORD TWP BOARD OF EDUCATION CAMDEN ACADEMY CHARTER HIGH SCHOOL SCHOMBURG CHARTER SCHOOL WAYNE BOARD OF EDUCATION CAMDEN PROMISE CHARTER SCHOOL SOARING HEIGHTS CHARTER SCHOOL (*) WEEHAWKEN TWP BOARD OF EDUCATION (*) CAMDEN’S PRIDE CHARTER SCHOOL SUSSEX COUNTY CHARTER SCHOOL WENONAH BOROUGH BOARD OF EDUCATION (*) CENTRAL JERSEY ARTS CHARTER SCHOOL (*) TEAM ACADEMY CHARTER SCHOOL WEST AMWELL TWP BOARD OF EDUCATION (*) CENTRAL JERSEY COLLEGE PREP CHARTER TEANECK COMMUNITY CHARTER SCHOOL (*) WEST CAPE MAY BORO BOARD OF EDUCATION (*) CHARTER TECH (*) TRENTON COMMUNITY CHARTER SCHOOL (*) WEST DEPTFORD TWP BOARD OF EDUCATION CLASSICAL ACAD. CHARTER SCHOOL (*) UNION COUNTY TEAMS CHARTER SCHOOL WEST ESSEX REGIONAL SCHOOL DISTRICT (*) COMMUNITY CHARTER SCHOOL OF PATERSON UNITY CHARTER SCHOOL (*) WEST LONG BRANCH BOARD OF EDUCATION DR LENA EDWARDS ACADEMY CHATER SCHOOL UNIVERSITY ACADEMY CHARTER HIGH SCHOOL WEST MILFORD TOWNSHIP BOARD OF EDUCA- D.U.E. SEASON CHARTER SCHOOL (*) UNIVERSITY HEIGHTS CHARTER SCHOOL (*) TION DISCOVERY CHARTER SCHOOL (*) VILLAGE CHARTER SCHOOL (*) WEST MORRIS REGIONAL HIGH SCHOOL DIS- EAST ORANGE COMMUNITY CHART SCHOOL VINELAND PUBLIC CHARTER SCHOOL TRICT (*) ECO CHARTER SCHOOL VISIONS ACADEMY CHARTER HIGH SCHOOL WEST NEW YORK BOARD OF EDUCATION (*) ELYSIAN CHARTER SCHOOL OF HOBOKEN (*) WEST ORANGE TOWNSHIP BOARD OF EDUCA- EMILY FISHER CHARTER SCHOOL (*) COMMUNICATIONS WORKERS OF AMERICA TION ENGLEWOOD ON THE PALISADES CHAR (*) NEWARK TEACHERS' UNION WEST PATERSON BORO BOARD OF EDUCATION ETHICAL COMMUNITY CHARTER SCHOOL JERSEY NJ STATE FEDERATION OF TEACHERS (*) CITY NJEA WEST WINDSOR PLAINSBORO REGIONAL (*) FOUNDATION ACADEMY CHARTER SCHOOL (*) PISCATAWAY TWP EDUCATION ASSOCIATION WESTAMPTON TOWNSHIP BOARD OF EDUCATION FRANKLIN CHARTER SCHOOL TRENTON EDUCATION ASSOCIATION WESTFIELD TOWN BOARD OF EDUCATION FREEDOM ACADEMY CHARTER SCHOOL WOODBRIDGE TWP ED ASSOCIATION WESTVILLE BOARD OF EDUCATION (*) GALLOWAY COMMUNITY CHARTER SCHOOL CAMDEN CO ED SERVICES COMMISSION WESTWOOD REGIONAL SCHOOL DISTRICT (*) GATEWAY CHARTER SCHOOL ESSEX CO EDUCATIONAL SERVICE COMMISSION WEYMOUTH TOWNSHIP BOARD OF EDUCATION (*) GRANVILLE CHARTER MIDDLE SCHOOL HUNTERDON CO EDUCATION SERVICES COMMIS- WHARTON BOROUGH BOARD OF EDUCATION (*) GRAY CHARTER SCHOOL (*) SION WHITE TOWNSHIP BOARD OF EDUCATION GREAT OAKS CHARTER SCHOOL MIDDLESEX CO ED SERVICES COMMISSION WILDWOOD CITY BOARD OF EDUCATION (*) GREATER BRUNSWICK CHART SCHOOL (*) MONMOUTH OCEAN EDUCATION SERVICE COM- WILDWOOD CREST BOARD OF EDUCATION (*) HATIKVAH INTERNATIONAL ACADEMY CHARTER MISSION WILLINGBORO TWP BOARD OF EDUCATION (*) SCHOOL MORRIS CO EDUCATION SERVICES COMMISSION WINFIELD TOWNSHIP BOARD OF EDUCATION (*) HOBOKEN CHARTER SCHOOL PASSAIC CO. EDUCATION SERVICES COMMISSION WINSLOW TOWNSHIP BOARD OF EDUCATION HOBOKEN DUAL LANGUAGE CHARTER SCHOOL (*) WOODBINE BOROUGH BOARD OF EDUCATION HOPE ACADEMY CHARTER SCHOOL SOMERSET CO EDUCATIONAL SERVICES COM- WOODBRIDGE TOWNSHIP BOARD OF EDUCATION INSTITUTE FOR EXCELLENCE CHARTER SCHOOL MISSION (*) WOODBURY CITY BOARD OF EDUCATION INTERNATIONAL CHARTER SCHOOL SUSSEX CO ED SERVICES COMM BD OF EDUCA- WOODBURY HEIGHTS BOARD OF EDUCATION (*) JERSEY CITY COMM CHARTER SCHOOL (*) TION (*) WOODCLIFF LAKE BOARD OF EDUCATION (*) JERSEY CITY GOLDEN DOOR CHARTER UNION CO EDUCATIONAL SERVICES COMMISSION WOODLAND TWP BOARD OF EDUCATION (*) (*) JOHN P HOLLAND CHARTER SCHOOL WOODLYNNE BOARD OF EDUCATION (*) LADY LIBERTY ACADEMY CHARTER SCHOOL WOOD-RIDGE BOARD OF EDUCATION (*) RAMAPO COLLEGE OF NEW JERSEY (*) LEAP ACADEMY CHARTER SCHOOL WOODSTOWN-PILESGROVE REGIONAL SCHOOL RICHARD STOCKTON COLLEGE OF NJ (*) LEARNING COMM. CHARTER SCHOOL (*) WYCKOFF TOWNSHIP BOARD OF EDUCATION (*) STATE LIBRARY AFFILIATED W/TESC (*) LIBERTY ACADEMY CHARTER SCHOOL THE COLLEGE OF NEW JERSEY (*) MARIA L. VARISCO-ROGERS CHARTER (*) ATLANTIC CAPE COMMUNITY COLLEGE (*) THOMAS EDISON STATE COLLEGE (*) MARION P.THOMAS CHARTER SCHOOL (*) BERGEN COMMUNITY COLLEGE (*) METS CHATER SCHOOL BROOKDALE COMMUNITY COLLEGE (*) ATLANTIC CO SPECIAL SERVICES (*) MILLVILLE PUBLIC CHARTER SCHOOL BURLINGTON CO COLLEGE (*) BERGEN CO BD OF SPECIAL SERVICES NEW HORIZON COMMUNITY CHARTER SCHOOL CAMDEN COUNTY COLLEGE (*) BURLINGTON CO BD SPECIAL SERVICES NEWARK LEGACY CHARTER SCHOOL CUMBERLAND COUNTY COLLEGE (*) CAPE MAY CO SPECIAL SERVICES (*) NEWARK CHARTER SCHOOL (*) ESSEX COUNTY COLLEGE (*) GLOUCESTER CO SP SERVICES SCHOOL DIS- NEWARK EDUCATORS’ COMMUNITY CHARTER TRICT GLOUCESTER COUNTY COLLEGE (*) SCHOOL MERCER CO SPECIAL SER SCHOOL DIST HUDSON CO COMMUNITY COLLEGE (*) NORTH STAR ACADEMY CHARTER SCHOOL SALEM CO SP SERVICES SCHOOL DIST (*) MERCER CO COMMUNITY COLLEGE (*) OCEANSIDE CHARTER SCHOOL STOCKTON AFFILIATED SERVICES INC MIDDLESEX COUNTY COLLEGE PACE CHARTER SCHOOL OF HAMILTON (*) WARREN CO SP SERVICES SCHOOL DIST MORRIS COUNTY COLLEGE (*) PATERSON CHART SCHOOL - SCIENCE/TECH OCEAN COUNTY COLLEGE (*) PAUL ROBESON CHARTER SCHOOL KEAN UNIVERSITY (*) PASSAIC COUNTY COMMUNITY COLLEGE (*) PEOPLES PREPARATORY CHATER SCHOOL MONTCLAIR STATE UNIVERSITY (*) RARITAN VALLEY COMMUNITY COLLEGE (*) PLEASANTECH ACADEMY CHARTER SCHOOL NEW JERSEY CITY UNIVERSITY (*) SALEM COMMUNITY COLLEGE (*) PRIDE ACADEMY CHARTER SCHOOL NJ INSTITUTE OF TECHNOLOGY (*) SUSSEX COUNTY COMM. COLLEGE (*) PRINCETON CHARTER SCHOOL UNION COUNTY COLLEGE (*) ROWAN UNIVERSITY (*)

*In addition to participating in the retirement system, also participates in the State Health Benefits Program

308 New Jersey Division of Pensions and Benefits STATISTICAL INFORMATION

PARTICIPATING EDUCATION EMPLOYERS, Continued

RUTGERS UNIVERSITY (*) CAMDEN COUNTY TECHNICAL SCHOOLS (*) MONMOUTH CO VOCATIONAL SCHOOLS (*) UNIV. OF MEDICINE & DENTISTRY - NEW CAPE MAY CO TECHNICAL SCHOOL DIST MORRIS CO VOCATIONAL SCHOOL DISTRICT BRUNSWICK (*) CUMBERLAND CO BD OF VOC ED OCEAN COUNTY VOCATIONAL SCHOOL (*) UNIV. OF MEDICINE & DENTISTRY - NEWARK (*) ESSEX CO VOCATIONAL SCHOOL PASSAIC CO VOCATIONAL SCHOOL UNIV. OF MEDICINE & DENTISTRY - STRATFORD (*) GLOUCESTER CO VO-TECH SCHOOL DIST SALEM CO VOCATIONAL SCHOOL (*) WILLIAM PATERSON UNIVERSITY OF NJ (*) HUDSON CO SCHOOLS OF TECHNOLOGY SOMERSET CO VOCATIONAL SCHOOL HUNTERDON COUNTY VOCATIONAL (*) SUSSEX COUNTY VOCATIONAL ATLANTIC CO VOCATIONAL SCHOOLS (*) MERCER CO VOCATIONAL SCHOOLS UNION CO VOCATIONAL SCHOOLS (*) BERGEN CO VOCATIONAL SCHOOL MIDDLESEX CO VOCATIONAL SCHOOL (*) WARREN CO VOCATIONAL SCHOOL (*) BURLINGTON CO INSTITUTE OF TECH

STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS PARTICIPATING AGENCIES AND AUTHORITIES

ABERDEEN TWP FIRE DIST 2 MIDDLE TOWNSHIP FIRE DISTRICT #1 (*) BUENA BORO HOUSING AUTH (*) ABERDEEN TWP FIRE DISTRICT 1 (*) MILLSTONE TOWNSHIP FIRE DISTRICT #1 (*) BURLINGTON CITY HOUSING AUTH (*) BORDENTOWN FIRE DISTRICT #1 (*) MONROE TWP FIRE DISTRICT 1 (*) CAMDEN CITY HOUSING AUTHORITY (*) BORDENTOWN TWP FIRE DISTRICT 2 (*) MONROE TWP FIRE DISTRICT 2 (*) CAPE MAY CITY HOUSING AUTHORITY (*) BRICK TOWNSHIP FIRE DIST 2 MONROE TWP FIRE DISTRICT 3 (*) CARTERET HOUSING AUTHORITY (*) BRICK TWP FIRE DISTRICT 1 MONTVILLE TWP FIRE DISTRICT 1 (*) CLEMENTON HOUSING AUTHORITY BRICK TWP JOINT BOARD OF FIRE COMMISSION MONTVILLE TWP FIRE DISTRICT 3 (*) CLIFFSIDE PARK HOUSING (*) (*) MOORESTOWN TWP FIRE DISTRICT 1 (*) COLLINGSWOOD BORO HOUSING AUTH (*) BURLINGTON TWP FIRE DISTRICT 1 MOORESTOWN TWP FIRE DISTRICT 2 DOVER TOWN HOUSING AUTHORITY CHERRY HILL FIRE DISTRICT 13 MOUNT LAUREL FIRE DISTRICT #1 (*) EAST ORANGE HOUSING AUTHORITY (*) CHESTERFIELD-HAM. FIRE DISTRICT #1 (*) NEPTUNE FIRE DISTRICT 1 (*) EDGEWATER HOUSING AUTHORITY (*) CINNAMINSON TWP FIRE DIST #1 NORTH HUDSON REGIONAL FIRE & RESCUE EDISON TWP HOUSING AUTHORITY (*) DELRAN TWP FIRE DISTRICT #1 (*) OCEAN GROVE BOARD OF FIRE COMMISSION ELIZABETH CITY HOUSING AUTHORITY (*) DEPTFORD TWP FIRE DISTRICT (*) OCEAN TWP FIRE DISTRICT 1 (*) ENGLEWOOD HOUSING AUTHORITY (*) DOVER TWP FIRE DISTRICT 2 OCEAN TWP FIRE DISTRICT 2 (*) FLORENCE TWP HOUSING AUTHORITY EAST BRUNSWICK TWP FIRE DISTRICT #1 OLD BRIDGE TWP DISTRICT 1 FORT LEE HOUSING AUTHORITY (*) FLORENCE TWP. FIRE DISTRICT #1 OLD BRIDGE TWP FIRE DISTRICT 2 FRANKLIN TWP HOUSING AUTHORITY GLOUCESTER TWP FIRE DISTRICT 2 OLD BRIDGE TWP FIRE DISTRICT 3 (*) FREEHOLD BORO HOUSING AUTHORITY (*) GLOUCESTER TWP FIRE DISTRICT 3 (*) OLD BRIDGE TWP FIRE DISTRICT 4 GARFIELD HOUSING AUTHORITY (*) GLOUCESTER TWP FIRE DISTRICT 4 PINE HILL FIRE DISTRICT 1 GLASSBORO BOROUGH HOUSING AUTHORITY (*) GLOUCESTER TWP FIRE DISTRICT 5 (*) PINE HILL FIRE DISTRICT 1 GLOUCESTER CO HOUSING AUTHORITY (*) GLOUCESTER TWP FIRE DISTRICT 6 (*) PLAINSBORO TWP FIRE DISTRICT 1 (*) GLOUCESTER TWP HOUSING AUTHORITY (*) HADDON TWP FIRE DISTRICT 1 (*) PLUMSTED FIRE DISTRICT #1 (*) GUTTENBERG HOUSING AUTHORITY (*) HAMILTON TWP FIRE DISTRICT 2 (*) RIVERSIDE TWP FIRE DISTRICT # 1 HACKENSACK HOUSING AUTHORITY (*) HAMILTON TWP FIRE DISTRICT 3 (*) TOMS RIVER TWP FIRE DISTRICT 1 HADDON TOWNSHIP HOUSING AUTHORITY (*) HAMILTON TWP FIRE DISTRICT 4 (*) TOWACO FIRE DISTRICT 2 HARRISON TOWN HOUSING AUTHORITY HAMILTON TWP FIRE DISTRICT 5 (*) VOORHEES FIRE DISTRICT (*) HIGHLAND PARK HOUSING AUTHORITY (*) HAMILTON TWP FIRE DISTRICT 6 (*) WALL TOWNSHIP FIRE DISTRICT 2 HIGHLANDS HOUSING AUTHORITY (*) HAMILTON TWP FIRE DISTRICT 7 (*) WALL TOWNSHIP FIRE DISTRICT 3 HIGHTSTOWN BORO HOUSING AUTHORITY (*) HAMILTON TWP FIRE DISTRICT 8 (*) WASHINGTON TWP BOARD OF FIRE COMMISSION HOBOKEN HOUSING AUTHORITY (*) HAMILTON TWP FIRE DISTRICT 9 (*) WASHINGTON TWP FIRE DISTRICT #1 IRVINGTON HOUSING AUTHORITY (*) HANOVER TWP FIRE DISTRICT 2 WESTVILLE FIRE DISTRICT # 1 JERSEY CITY HOUSING AUTHORITY (*) HANOVER TWP FIRE DISTRICT 3 WINSLOW TWP FIRE DISTRICT 1 (*) KEANSBURG BORO HOUSING AUTHORITY (*) HARRISON TOWNSHIP FIRE DISTRICT #1 WOODBRIDGE BD OF FIRE COMMISSION 9 LAKEWOOD HOUSING AUTHORITY HAZLET TOWNSHIP FIRE DISTRICT #1 WOODBRIDGE FIRE DISTRICT 5 (*) LINDEN CITY HOUSING AUTHORITY (*) HOPEWELL TWP FIRE DISTRICT 1 (*) WOODBRIDGE TWP FIRE DISTRICT 2 (*) LODI HOUSING AUTHORITY (*) HOWELL TWP FIRE DISTRICT 1 WOODBRIDGE TWP FIRE DISTRICT #12 LONG BRANCH CITY HOUSING AUTHORITY (*) HOWELL TWP FIRE DISTRICT 2 WOODBRIDGE TWP FIRE DISTRICT 1 (*) MADISON BORO HOUSING AUTHORITY HOWELL TWP FIRE DISTRICT 3 (*) WOODBRIDGE TWP FIRE DISTRICT 11 MIDDLETOWN TWP HOUSING AUTHORITY (*) HOWELL TWP FIRE DISTRICT 4 WOODBRIDGE TWP FIRE DISTRICT 8 MILLVILLE HOUSING AUTHORITY JACKSON BD FIRE DISTRICT 2 (*) WOODBRIDGE TWP FIRE DISTRICT 7 (*) MORRIS COUNTY HOUSING AUTHORITY JACKSON TWP FIRE DISTRICT 3 (*) MORRISTOWN HOUSING AUTHORITY (*) JACKSON TWP FIRE DISTRICT 4 ASBURY PARK HOUSING AUTHORITY (*) NEPTUNE CITY HOUSING AUTHORITY JERSEY CITY FIRE DEPARTMENT ATLANTIC CITY HOUSING AUTHORITY (*) NEPTUNE TWP HOUSING AUTHORITY (*) LAKEWOOD TWP FIRE DISTRICT 1 BAYONNE HOUSING AUTHORITY (*) NEW BRUNSWICK HOUSING AUTHORITY (*) LAMBERTVILLE CITY FIRE DISTRICT #1 BELMAR HOUSING AUTHORITY NEWARK HOUSING AUTHORITY (*) LINDENWOLD TWP FIRE DISTRICT 1 (*) BERGEN CO HOUSING AUTHORITY NEWTON TOWN HOUSING AUTHORITY (*) MANALAPAN FIRE DISTRICT 2 BERKELEY TWP HOUSING AUTHORITY (*) NORTH BERGEN HOUSING AUTHORITY (*) MANALAPAN TWP FIRE DISTRICT 1 BEVERLY CITY HOUSING AUTHORITY (*) OCEAN CITY HOUSING AUTHORITY (*) MANASQUAN BORO FIRE DISTRICT 1 BOONTON HOUSING AUTHORITY (*) OLD BRIDGE HOUSING AUTHORITY MARLBORO TWP FIRE DISTRICT 1 BRICK TWP HOUSING AUTHORITY (*) ORANGE CITY HOUSING AUTHORITY (*) MARLBORO TWP FIRE DISTRICT 3 BRIDGETON CITY HOUSING AUTH (*) PASSAIC CITY HOUSING AUTHORITY (*)

*In addition to participating in the retirement system, also participates in the State Health Benefits Program

New Jersey Division of Pensions and Benefits 309 STATISTICAL INFORMATION

PARTICIPATING AGENCIES AND AUTHORITIES, Continued

PATERSON HOUSING AUTHORITY (*) AGENCY (*) PENNS GROVE HOUSING AUTHORITY (*) MIDDLESEX CO MOSQUITO EXTERMINATION SOUTH JERSEY ECONOMIC DEVELOPMENT DIS- PERTH AMBOY HOUSING AUTHORITY COMMISSION TRICT (*) PHILLIPSBURG HOUSING AUTHORITY MONMOUTH CO MOSQUITO EXTERMINATION VINELAND-MILLVILLE URBAN ENTERPRISE ZONE PLAINFIELD HOUSING AUTHORITY (*) COMM (*) (*) PLEASANTVILLE HOUSING AUTHORITY (*) OCEAN CO MOSQUITO COMMISSION (*) WILDWOODS JOINT CONSTRUCTION PRINCETON HOUSING AUTHORITY (*) SALEM CO MOSQUITO COMMISSION (*) RAHWAY CITY HOUSING AUTHORITY (*) WARREN CO MOSQUITO EXTERMINATION COM- CASINO REINVESTMENT DEVELOPMENT RED BANK BORO HOUSING AUTH (*) MISSION AUTHORITY (*) SALEM CITY HOUSING AUTHORITY (*) COMPENSATION RATING & INSURANCE BUREAU SAYREVILLE HOUSING AUTHORITY (*) CAMDEN COUNTY PARK POLICE (*) SECAUCUS HOUSING AUTHORITY MERCER COUNTY PARK COMMISSION (*) DELAWARE RIVER BASIN COMMISSION (*) SOUTH AMBOY HOUSING AUTHORITY (*) MORRIS COUNTY PARK COMMISSION DELAWARE RIVER JOINT TOLL BRIDGE COMMIS- TRENTON HOUSING AUTHORITY (*) SOMERSET CO PARK COMMISSION SION UNION CITY HOUSING AUTHORITY (*) DELAWARE RIVER PORT AUTHORITY VINELAND HOUSING AUTHORITY BAYONNE CITY PARKING AUTHORITY (*) ED INFORMATION & RESOURCE CENTER WEEHAWKEN TWP HOUSING AUTHORITY (*) BLOOMFIELD PARKING AUTHORITY (*) FORT MONMOUTH PLANNING AUTHORITY (*) WEST NEW YORK HOUSING AUTHORITY CAMDEN CITY PARK AUTHORITY (*) INTERSTATE ENVIRONMENTAL COMMISSION (*) WILDWOOD CITY HOUSING AUTHORITY (*) DOVER TWP PARKING AUTHORITY LAKE HOPATCONG COMMISSION (*) WOODBRIDGE HOUSING AUTHORITY (*) DUNELLEN PARKING AUTHORITY (*) MEADOWLANDS CONSERVATION TRUST EAST ORANGE PARKING AUTHORITY (*) NJ BUILDING AUTHORITY (*) CAMDEN CO HEALTH SERVICES CENTER ELIZABETH CITY PARKING AUTHORITY (*) NJ COMMERCE & ECONOMIC GROWTH COMMIS- ESSEX REGIONAL HEALTH COMMISSION (*) FORT LEE PARKING AUTHORITY SION (*) HUDSON REGIONAL HEALTH COMMISSION (*) HACKETTSTOWN PARKING AUTHORITY NJ ECONOMIC DEVELOPMENT AUTHORITY (*) MID BERGEN REGIONAL HEALTH COMMISSION (*) HOBOKEN CITY PARKING AUTHORITY NJ EDUCATIONAL FACILITIES AUTHORITY (*) MIDDLE BROOK REGIONAL HEALTH COMMISSION JERSEY CITY PARKING AUTHORITY (*) NJ FIREMENS HOME (*) (*) LONG BRANCH PARKING AUTHORITY (*) NJ HEALTH CARE FACILITIES (*) MONMOUTH CO HEALTH DEPARTMENT (*) METUCHEN PARKING AUTHORITY NJ HOUSING & MORTGAGE FINANCE AGENCY (*) MONMOUTH CO REGIONAL HEALTH COMMISSION MONTCLAIR PARKING AUTHORITY (*) NJ MEADOWLAND COMMISSION (*) 1 MORRISTOWN PARKING AUTHORITY NJ REDEVELOPMENT AUTHORITY (*) NORTHWEST BERGEN HEALTH COMMISSION (*) NEW BRUNSWICK PARKING AUTHORITY (*) NJ SCHOOLS DEVELOPMENT AUTHORITY (*) OCEAN CO BOARD OF HEALTH NEWARK PARKING AUTHORITY NJ SPORTS & EXPOSITION AUTHORITY NORTH BERGEN PARKING AUTHORITY NJ TRANSIT CORPORATION MIDDLESEX CO JOINT HEALTH INSURANCE FUND NORTH PLAINFIELD PARKING AUTHORITY (*) NJ TURNPIKE AUTHORITY MIDDLESEX CO MUNICIPAL JOINT INSURANCE PATERSON PARKING AUTHORITY (*) NJ WATER SUPPLY AUTHORITY (*) FUND (*) PERTH AMBOY CITY PARKING AUTHORITY NORTH JERSEY WATER SUPPLY COMMISSION NJ SCHOOL BOARD ASSOCIATION INSURANCE RAHWAY PARKING AUTHORITY (*) PALISADES INTERSTATE PARK COMMISSION (*) GROUP (*) SOUTH ORANGE TWP PARKING AUTHORITY (*) PASSAIC VALLEY SEWERAGE COMMISSION STATEWIDE INSURANCE FUND SOUTH RIVER PARKING AUTHORITY PINELANDS COMMISSION (*) BAYSHORE JOINTURE COMMISSION (*) TRENTON PARKING AUTHORITY (*) ROWAN UNIVERSITY FOUNDATION MORRIS-UNION JOINTURE COMMISSION UNION CITY PARKING AUTHORITY SOUTH JERSEY PORT CORPORATION SOUTH BERGEN JOINTURE COMMISSION WEST NEW YORK PARKING AUTHORITY SOUTH JERSEY TRANSPORTATION AUTHORITY WEST WINDSOR PARKING AUTHORITY (*) WATERFRONT COMMISSION OF NY HARBOR (*) BURLINGTON COUNTY BRIDGE COMMISSION CAPE MAY CO BRIDGE COMMISSION (*) CAMDEN CO POLLUTION CONTROL FIN JOINT DISPATCH AUTHORITY FOR SPRING LAKE ESSEX & UNION JOINT MEETING (*) UNION CO POLLUTION CONTROL AUTHORITY MADISON-CHATHAM JOINT MEETING (*) WARREN CO POLLUTION CONTROL (*) BERGEN COUNTY SOIL CONSERVATION DISTRICT SECOND RIVER JOINT MEETING (*) CARTERET PORT AUTHORITY BURLINGTON CO SOIL CONSERVATION DISTRICT GENERAL ASSEMBLY (*) PERTH AMBOY PORT AUTHORITY (*) SENATE (*) SALEM CITY MUNICIPAL PORT AUTHORITY (*) CAMDEN CO SOIL CONSERVATION DISTRICT (*) CAPE ATLANTIC SOIL CONSERVATION DISTRICT BEDMINSTER & FAR HILLS PUB LIBRARY (*) ATLANTIC CO IMPROVEMENT AUTHORITY (*) (*) CHATHAM JOINT FREE PUBLIC LIBRARY (*) BAYONNE LOCAL REDEVELOPMENT AGENCY (*) CUMBERLAND-SALEM CONSERVATION DISTRICT CHESTER BORO/TWP PUBLIC LIBRARY (*) BERGEN COUNTY IMPROVEMENT AUTHORITY (*) (*) ELIZABETH PUBLIC LIBRARY (*) BRIDGETON ZONE DEVELOPMENT AUTHORITY (*) FREEHOLD SOIL CONSERVATION DISTRICT (*) HILLSIDE PUBLIC LIBRARY CAMDEN CITY REDEVELOPMENT AGENCY GLOUCESTER CO SOIL CONSERVATION DISTRICT LINDEN CITY FREE PUBLIC LIBRARY CAMDEN CO IMPROVEMENT AUTHORITY (*) MATAWAN ABERDEEN PUBLIC LIBRARY (*) CARTERET REDEVELOPMENT AGENCY (*) HUNTERDON CO SOIL CONSERVATION DISTRICT MONTCLAIR LIBRARY (*) CUMBERLAND CO IMPROVEMENT AUTHORITY (*) (*) MORRISTOWN/MORRIS JOINT LIBRARY (*) ESSEX CO IMPROVEMENT AUTHORITY (*) MERCER CO SOIL CONSERVATION DISTRICT (*) ORANGE CITY LIBRARY GLOUCESTER CO IMPROVEMENT AUTHORITY MORRIS CO SOIL CONSERVATION DISTRICT (*) PRINCETON JOINT PUBLIC LIBRARY (*) GREATER WILDWOOD TOURISM IMP & DA (*) OCEAN CO SOIL CONSERVATION DISTRICT (*) RAHWAY PUBLIC LIBRARY HUDSON CO ECONOMIC DEVELOPMENT CORPO- SUSSEX CO SOIL CONSERVATION (*) RIDGEWOOD PUBLIC LIBRARY (*) RATION WARREN CO SOIL CONSERVATION DISTRICT (*) ROSELLE BOROUGH HUDSON CO IMPROVEMENT AUTHORITY (*) UNION TOWNSHIP LIBRARY JERSEY CITY REDEVELOPMENT AGENCY (*) ATLANTIC HIGHLANDS-HIGHLANDS REGIONAL WEST ORANGE LIBRARY (*) MERCER CO IMPROVEMENT AUTHORITY (*) SEWERAGE AUTHORITY MIDDLESEX COUNTY IMPROVEMENT AUTHORITY ATLANTIC CITY MUNICIPAL UTILITIES AUTHORITY ATLANTIC CITY CONVENTION CENTER (*) PASSAIC COUNTY IMPROVEMENT AUTHORITY (*) NJ PUBLIC BROADCASTING AUTHORITY RAHWAY CITY REDEVELOPMENT AGENCY ATLANTIC CO UTILITIES AUTHORITY (*) NORTHWEST BERGEN CENTRAL DISPATCH (*) SALEM CO IMPROVEMENT AUTHORITY (*) BAYONNE MUNICIPAL UTILITIES AUTHORITY (*) TRENTON DOWNTOWN ASSOCIATION SAYREVILLE ECONOMIC & REDEVELOPMENT BAYSHORE REGIONAL SEWERAGE AUTHORITY (*)

*In addition to participating in the retirement system, also participates in the State Health Benefits Program

310 New Jersey Division of Pensions and Benefits STATISTICAL INFORMATION

PARTICIPATING AGENCIES AND AUTHORITIES, Continued

BEACH HAVEN SEWERAGE AUTHORITY (*) LAKEWOOD TWP MUNICIPAL UTILITIES AUTHORI- POMPTON LAKES MUNICIPAL UTILITIES AUTHORI- BEACHWOOD SEWERAGE AUTHORITY TY (*) TY (*) BERGEN CO UTILITIES AUTHORITY LAMBERTVILLE SEWERAGE AUTHORITY (*) RAHWAY VALLEY SEWERAGE AUTHORITY (*) BERKELEY TWP SEWERAGE AUTHORITY (*) LANDIS SEWERAGE AUTHORITY RARITAN TWP MUNICIPAL UTILITIES AUTHORITY BERKELEY TWP MUNICIPAL UTILITIES AUTHORITY LEBANON BORO SEW AUTHORITY (*) (*) (*) LINDEN ROSELLE SEWERAGE AUTHORITY (*) READINGTON-LEBANON SEWERAGE AUTHORITY BERNARDS TWP SEWERAGE AUTHORITY (*) LITTLE EGG HARBOR MUN. UTILITIES AUTHORITY (*) BEVERLY SEWERAGE AUTHORITY (*) (*) RIVERSIDE SEW AUTHORITY BORDENTOWN SEWERAGE AUTHORITY (*) LOGAN TWP MUNICIPAL UTILITIES AUTHORITY (*) ROCKAWAY VALLEY REGIONAL SEWER AUTHORI- BRICK TWP MUNICIPAL UTILITIES AUTHORITY (*) LONG BRANCH SEWERAGE AUTHORITY (*) TY (*) BUENA BORO MUNICIPAL UTILITIES AUTHORITY LOWER TWP MUNICIPAL UTILITIES AUTHORITY (*) ROCKLEIGH BORO SEWERAGE AUTHORITY (*) MANASQUAN RIVER REGIONAL SEWERAGE RUNNEMEDE SEWERAGE AUTHORITY CAMDEN CO MUNICIPAL UTILITIES AUTHORITY AUTHORITIES SECAUCUS MUNICIPAL UTILITIES AUTHORITY CAPE MAY COUNTY MUNICIPAL UTILITIES MANCHESTER UTILITIES AUTHORITY SOMERS POINT SEWERAGE AUTHORITY AUTHORITY MANTUA TWP MUNICIPAL UTILITIES AUTHORITY SOMERSET RARITAN VALLEY SEWERAGE CARLSTADT SEWERAGE AUTHORITY (*) AUTHORITY (*) CARNEYS POINT TWP SEWERAGE AUTHORITY MARLBORO TWP MUNICIPAL UTILITIES AUTHORI- SOMERSET REGIONAL ANIMAL SHELTER (*) CINNAMINSON SEWERAGE AUTHORITY TY (*) SOUTH MONMOUTH REGIONAL SEWERAGE CLINTON TWP SEWERAGE AUTHORITY (*) MERCHANTVILLE PENNSAUKEN WATER COMMIS- AUTHORITY (*) CUMBERLAND CO UTILITIES AUTHORITY (*) SION SOUTH TOMS RIVER SEWERAGE AUTHORITY (*) DELANCO SEWERAGE AUTHORITY (*) MIDDLESEX CO UTILITIES AUTHORITY SOUTHEAST MORRIS CO MUNI UTILITIES DELAWARE TWP MUNICIPAL UTILITIES AUTHORI- MIDDLETOWN TWP SEWERAGE AUTHORITY (*) AUTHORITY (*) TY MONMOUTH CO BAYSHORE OUTFILL AUTHORITY STAFFORD MUNICIPAL UTILITIES AUTHORITY DELRAN SEWERAGE AUTHORITY (*) (*) STONY BROOK REGIONAL SEWERAGE AUTHORI- DEPTFORD TWP MUNICIPAL UTILITIES AUTHORITY MONROE TWP MUN. UTILITIES AUTH. (GLOUCES- TY (*) (*) TER) (*) SUSSEX CO MUNICIPAL UTILITIES AUTHORITY (*) EAST WINDSOR MUNICIPAL UTILITIES AUTHORITY MONTVILLE TWP MUNICIPAL UTILITIES AUTHORI- TOMS RIVER TWP MUNICIPAL UTILITIES AUTHORI- (*) TY TY (*) EATONTOWN SEWERAGE AUTHORITY MOUNT HOLLY MUNICIPAL UTILITIES AUTHORITY TWO RIVERS WATER RECLAMATION AUTHORITY EDGEWATER PARK SEWERAGE AUTHORITY MOUNT LAUREL TWP MUNICIPAL UTILITIES (*) EGG HARBOR TWP MUNICIPAL UTILITIES AUTHORITY UNION CO UTILITIES AUTHORITY AUTHORITY (*) MUSCONETCONG SEWERAGE AUTHORITY (*) WANAQUE BOROUGH SEWERAGE AUTHORITY (*) ELK TOWNSHIP MUNICIPAL UTILITIES AUTHORITY NEPTUNE TWP SEWERAGE AUTHORITY (*) WANAQUE VALLEY REGIONAL SEWERAGE EVESHAM MUNICIPAL UTILITIES AUTHORITY (*) NORTH BERGEN MUNICIPAL UTILITIES AUTHORI- AUTHORITY (*) EWING LAWRENCE SEWERAGE AUTHORITY (*) TY WARREN CO MUNICIPAL UTILITIES AUTHORITY (*) FLORHAM PARK SEW AUTHORITY NORTH HUDSON SEWERAGE AUTHORITY (*) WASHINGTON TWP MUN. UTILITIES AUTH. (MER- FRANKLIN TWP SEWERAGE AUTHORITY (*) NORTHWEST BERGEN CO UTILITY AUTHORITY (*) CER) GLOUCESTER CO UTILITIES AUTHORITY OCEAN CO UTILITIES AUTHORITY (*) WASHINGTON TWP MUN. UTILITY AUTH. (GLOUCES- GLOUCESTER TWP MUNICIPAL UTILITIES OCEAN GROVE SEWERAGE AUTHORITY TER) (*) AUTHORITY (*) OCEAN TWP MUNICIPAL UTILITY AUTHORITY WASHINGTON TWP MUN. UTILITIES AUTH. (MOR- HACKETTSTOWN MUNICIPAL UTILITIES AUTHORI- OCEAN TWP SEWERAGE AUTHORITY (*) RIS) (*) TY (*) OLD BRIDGE MUNICIPAL UTILITY AUTHORITY WATERFORD TWP MUNICIPAL UTILITIES AUTHORI- HAMILTON TWP MUNICIPAL UTILITIES AUTHORITY PASSAIC COUNTY UTILITY AUTHORITY TY (*) (*) PASSAIC VALLEY WATER COMMISSION W. MILFORD TWP MUNICIPAL UTILITIES AUTHORI- HANOVER SEWERAGE AUTHORITY (*) PEMBERTON TWP MUNICIPAL UTILITIES AUTHORI- TY (*) HAZLET TWP SEWERAGE AUTHORITY (*) TY (*) WESTERN MONMOUTH UTILITIES AUTHORITY (*) HILLSBOROUGH TWP MUN. UTILITIES AUTHORITY PENNS GROVE SEWERAGE AUTHORITY WEYMOUTH TWP MUNICIPAL UTILITIES AUTHORI- (*) PENNSAUKEN SEWERAGE AUTHORITY (*) TY HUDSON-ESSEX PASSAIC (*) PENNSVILLE SEWERAGE AUTHORITY WILLINGBORO MUNICIPAL UTILITIES AUTHORITY JACKSON TWP MUNICIPAL UTILITIES AUTHORITY PEQUANNOCK, LINCOLN PARK &FAIRFIELD (*) (*) (*) PINE HILL BORO MUNICIPAL UTILITIES AUTHORI- WOODBINE MUNICIPAL UTILITIES AUTHORITY (*) JERSEY CITY INCINERATOR AUTHORITY TY WOODSTOWN SEWERAGE AUTHORITY JERSEY CITY MUNICIPAL UTILITIES AUTHORITY PLAINFIELD AREA REGIONAL SEWER AUTHORITY WRIGHTSTOWN MUNICIPAL UTILITIES AUTHORITY KEARNY MUNICIPAL UTILITIES AUTHORITY (*) (*) (*) LACEY MUNICIPAL UTILITIES AUTHORITY (*) PLAINFIELD MUNICIPAL UTILITIES AUTHORITY

STATE OF NEW JERSEY DIVISION OF PENSIONS AND BENEFITS PARTICIPATING STATE DEPARTMENTS AND PENSION FUNDS

ALL NEW JERSEY STATE GOVERNMENT DEPARTMENTS AND THEIR ASSOCIATED DIVISIONS

THE FOLLOWING LOCATIONS PARTICIPATE IN THE STATE HEALTH BENEFITS PROGRAM ONLY: ESSEX COUNTY PENSION FUND HUDSON COUNTY PENSION FUND JERSEY CITY PENSION FUND UMDNJ PENSION FUND

*In addition to participating in the retirement system, also participates in the State Health Benefits Program

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