COMPREHENSIVE ANNUAL FINANCIAL REPORT for the Fiscal Year Ended June 30, 2018
Total Page：16
File Type：pdf, Size：1020Kb
2018 For the Fiscal Year Ended June 30, 2018 COMPREHENSIVE ANNUAL The Indiana Public Retirement System is a component FINANCIAL REPORT unit and a pension trust fund of the State of Indiana. Prepared by the INPRS Finance and Administration Department 2018 COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2018 The Indiana Public Retirement System is a component unit and a pension trust fund of the State of Indiana. Public Employees’: Defined Benefit Account and Defined Contribution Account | Teachers’: Pre-1996 Defined Benefit Account, 1996 Defined Benefit Account, and Defined Contribution Account | 1977 Police Officers’ and Firefighters’ Retirement Fund | Judges’ Retirement System | Excise, Gaming and Conservation Officers’ Retirement Fund | Prosecuting Attorneys’ Retirement Fund | Legislators’: Defined Benefit Fund and Defined Contribution Fund | Special Death Benefit Fund | Local Public Safety Pension Relief Fund INPRS | One North Capitol, Suite 001 | Indianapolis, IN 46204 Toll-free: (844) GO - INPRS | www.inprs.in.gov | [email protected] INPRS is a trust and an independent body, corporate and politic. The fund is not a department or agency of the State of Indiana, but is an independent instrumentality exercising essential governmental functions. (Indiana Code Section 5-10.5-2-3). Table of Contents 2018 COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2018 INTRODUCTORY SECTION INVESTMENT SECTION Public Employees’ Defined Benefit 7 Letter of Transmittal 101 Report on Investment Activities Account 12 Government Finance Officers Association – 104 Report from the Chief Investment 151 Historical Summary of Actuarial Certificate of Achievement Officer Valuation Results 13 Public Pension Coordinating Council – 112 Outline of Investment Policies 152 Summary of Actuarial Assumptions, Public Pension Standards Award 114 Investment Summary Actuarial Methods and Plan Provisions 14 Administrative Organization Investment Results – Consolidated 157 Analysis of Financial Experience 17 Summary of Key Data as of June 30, 2018 Defined Benefit Assets and Solvency Test Fund Highlights 158 Schedule of Active Members 115 Assets by Retirement Plan Valuation Data 18 Public Employees’ Retirement Fund 116 Asset Allocation Summary: June 30, 159 Schedule of Retirants and Beneficiaries 19 Teachers’ Retirement Fund 2018 Actual vs. June 30, 2017 Actual 20 1977 Police Officers’ and Firefighters’ 117 Asset Allocation Summary: June 30, Teachers’ Pre-1996 Defined Benefit Retirement Fund 2018 Actual vs. Target Account 21 Judges’ Retirement System 118 Annualized Time-Weighted Rate 160 Historical Summary of Actuarial 22 Excise, Gaming and Conservation of Return by Asset Class vs. Valuation Results Officers’ Retirement Fund Benchmark Returns 161 Summary of Actuarial Assumptions, 23 Prosecuting Attorneys’ Retirement Fund 119 Asset Class Summaries Actuarial Methods and Plan Provisions 24 Legislators’ Retirement System 128 Historical Comparative Investment 165 Analysis of Financial Experience Results and Solvency Test FINANCIAL SECTION 129 Ten-Year Time-Weighted Investment Rates 166 Schedule of Active Members 27 Independent Auditor’s Report of Return Valuation Data 29 Management’s Discussion and Analysis 130 Statistical Performance 167 Schedule of Retirants and Beneficiaries (Unaudited) Investment Results – Defined Teachers’ 1996 Defined Benefit Financial Statements Contribution Assets Account 36 Statement of Fiduciary Net Position 131 Assets by Investment Option 168 Historical Summary of Actuarial 38 Statement of Changes in Fiduciary 132 Historical Annualized Time-Weighted Valuation Results Net Position Rate of Return by Investment Option vs. 169 Summary of Actuarial Assumptions, 40 Notes to the Financial Statements Benchmark Returns Actuarial Methods and Plan Provisions 133 Historical Annual Interest Crediting Rates Required Supplementary 173 Analysis of Financial Experience Information (Unaudited) Investment Information and Solvency Test 174 Schedule of Active Members 83 Introduction to Required Supplementary 134 Top Ten Equity Holdings by Fair Value and Valuation Data Information (Unaudited) and Other Top Ten Fixed Income Holdings by 175 Schedule of Retirants and Beneficiaries Supplementary Schedules Fair Value 84 Schedules of Changes in Net Pension 135 Top Ten Brokers’ Commission Fees 1977 Police Officers’ and Liability and Net Pension Liability 136 Investment Management Fees Firefighters’ Retirement Fund 92 Schedule of Contributions 137 Investment Professionals 176 Historical Summary of Actuarial 94 Schedule of Investment Returns Valuation Results 95 Schedule of Notes to Required ACTUARIAL SECTION 177 Summary of Actuarial Assumptions, Supplementary Information Indiana Public Retirement System Actuarial Methods and Plan Provisions Other Supplementary Schedules 180 Analysis of Financial Experience 143 Introduction and Solvency Test 96 Schedule of Administrative Expenses 144 Actuary’s Certification Letter 181 Schedule of Active Members 97 Schedule of Administrative Expenses - 148 Summary of Funded Status Valuation Data Vendors 149 Analysis of Financial Experience 182 Schedule of Retirants and Beneficiaries 99 Schedule of Direct Investment Expenses 150 Ten-Year Schedule of Participating Employers Judges’ Retirement System Public Employees’ Defined Benefit 258 Schedule of Benefit Recipients by Type of Account Benefit Option 183 Historical Summary of Actuarial 259 Schedule of Average Benefit Payments Valuation Results 225 Schedule of Changes and Growth in 184 Summary of Actuarial Assumptions, Fiduciary Net Position Prosecuting Attorneys’ Actuarial Methods and Plan Provisions 226 Schedule of Historical Contribution Rates Retirement Fund 187 Analysis of Financial Experience 227 Ratio of Active Members to Annuitants 260 Schedule of Changes and Growth in and Solvency Test 228 Schedule of Benefit Recipients by Type of Fiduciary Net Position 188 Schedule of Active Members Benefit Option 261 Ratio of Active Members to Annuitants Valuation Data 229 Schedule of Average Benefit Payments 262 Schedule of Benefit Recipients by Type of 189 Schedule of Retirants and Beneficiaries 231 Schedule of Participating Employers: Top 10 Benefit Option Excise, Gaming and Conservation Teachers’ Pre-1996 Defined Benefit 263 Schedule of Average Benefit Payments Officers’ Retirement Fund Account Legislators’ Defined Benefit Fund 190 Historical Summary of Actuarial 232 Schedule of Changes and Growth in 264 Schedule of Changes and Growth in Valuation Results Fiduciary Net Position Fiduciary Net Position 191 Summary of Actuarial Assumptions, 233 Ratio of Active Members to Annuitants 265 Ratio of Active Members to Annuitants Actuarial Methods and Plan Provisions 234 Schedule of Benefit Recipients by Type of 266 Schedule of Benefit Recipients by Type of 194 Analysis of Financial Experience Benefit Option Benefit Option and Solvency Test 235 Schedule of Average Benefit Payments 267 Schedule of Average Benefit Payments 195 Schedule of Active Members Valuation Data 237 Schedule of Participating Employers: Top 10 196 Schedule of Retirants and Beneficiaries Public Employees’ Defined Teachers’ 1996 Defined Benefit Contribution Account Prosecuting Attorneys’ Retirement Account Fund 268 Schedule of Changes and Growth in 238 Schedule of Changes and Growth in Fiduciary Net Position 197 Historical Summary of Actuarial Fiduciary Net Position 269 Schedule of Historical Contribution Rates Valuation Results 239 Schedule of Historical Contribution Rates Teachers’ Defined Contribution 198 Summary of Actuarial Assumptions, 240 Ratio of Active Members to Annuitants Actuarial Methods and Plan Provisions 241 Schedule of Benefit Recipients by Type of Account 201 Analysis of Financial Experience Benefit Option 270 Schedule of Changes and Growth in and Solvency Test 242 Schedule of Average Benefit Payments Fiduciary Net Position 202 Schedule of Active Members Valuation Data 244 Schedule of Participating Employers: Top 10 271 Schedule of Historical Contribution Rates 203 Schedule of Retirants and Beneficiaries 1977 Police Officers’ and Legislators’ Defined Contribution Legislators’ Defined Benefit Fund Firefighters’ Retirement Fund Fund 204 Historical Summary of Actuarial 245 Schedule of Changes and Growth in 272 Schedule of Changes and Growth in Valuation Results Fiduciary Net Position Fiduciary Net Position 205 Summary of Actuarial Assumptions, 246 Schedule of Historical Contribution Rates 273 Schedule of Historical Contribution Rates Actuarial Methods and Plan Provisions 247 Ratio of Active Members to Annuitants 208 Analysis of Financial Experience 248 Schedule of Benefit Recipients by Type of Special Death Benefit Fund and Solvency Test Benefit Option 274 Schedule of Changes and Growth in 209 Schedule of Active Members Valuation Data 249 Schedule of Average Benefit Payments Fiduciary Net Position 210 Schedule of Retirants and Beneficiaries 250 Schedule of Participating Employers: Top 10 275 Schedule of Average Death Benefit STATISTICAL SECTION Judges’ Retirement System Payments Local Public Safety Pension Indiana Public Retirement System 251 Schedule of Changes and Growth in Fiduciary Net Position Relief Fund 213 Summary of Statistical Section 252 Ratio of Active Members to Annuitants 276 Schedule of Changes and Growth in 214 Schedule of Changes and Growth in 253 Schedule of Benefit Recipients by Type of Fiduciary Net Position Fiduciary Net Position Benefit Option 277 Schedule of Average Death Benefit 215 Summary of Income Sources for a Ten-Year 254 Schedule of