Iowa Public Employees' Retirement System A
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IOWAPUBLIC EMPLOYEES’ RETIREMENT SYSTEM A PENSION TRUST FUND OF THE STATE OF IOWA FOR THE FISCAL YEAR ENDED JUNE 30, 2009 IOWA PUBLIC EMPLOYEES RETIREMENT SYSTEM COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE IOWA PUBLIC EMPLOYEES RETIREMENT SYSTEM A PENSION TRUST FUND OF THE STATE OF IOWA FOR THE FISCAL YEAR ENDED JUNE 30, 2009 PREPARED BY IOWA PUBLIC EMPLOYEES RETIREMENT SYSTEM DONNA M. MUELLER, CHIEF EXECUTIVE OFFICER IOWA PUBLIC EMPLOYEES RETIREMENT SYSTEM FOR MORE INFORMATION By mail P.O. Box 9117 Des Moines, IA 50306-9117 In person 7401 Register Drive Des Moines, IA 50321 8 a.m.4:30 p.m. Central Time MondayFriday Phone 515-281-0020 or toll-free 1-800-622-3849 7:30 a.m.5 p.m. Central Time MondayFriday E-mail [email protected] Web site www.ipers.org Fax 515-281-0053 Iowa Public Employees Retirement System ·· Comprehensive Annual Financial Report 2009 ii IOWA PUBLIC EMPLOYEES RETIREMENT SYSTEM Fiscal Year 2009 Highlights Membership: Active Members 167,717 Retired Members* 89,852 Contributions: Employee $270,934,593 Employer 415,324,133 Buy-Backs/Buy-Ins 9,300,671 Distributions: Benefits Paid $1,183,118,816 Refunds Paid 34,337,453 Investments: Net Investment and Securities Lending Loss $(3,863,760,600) Investment Rate of Return 16.27% Funding: Net Assets Held in Trust for Pension Benefits $17,974,040,651 Ratio of Actuarial Assets to Actuarial Liabilities 81.2% *Unless specifically noted, references to retirees throughout this report include beneficiaries. Iowa Public Employees Retirement System ··· Comprehensive Annual Financial Report 2009 iii IOWA PUBLIC EMPLOYEES RETIREMENT SYSTEM Iowa Public Employees Retirement System ·ª Comprehensive Annual Financial Report 2009 iv IOWA PUBLIC EMPLOYEES RETIREMENT SYSTEM Table of Contents Introduction ..................................................................................................................................Pages 126 Professional Awards ...............................................................................................................................................3 Letter of Transmittal................................................................................................................................................4 Administration.......................................................................................................................................................15 Investment Board ..................................................................................................................................................17 Benefits Advisory Committee..............................................................................................................................20 Professional and Consulting Services.................................................................................................................24 Investment Managers............................................................................................................................................26 Financial.......................................................................................................................................Pages 2766 Independent Auditors Report ............................................................................................................................29 Managements Discussion and Analysis............................................................................................................31 Basic Financial Statements ...................................................................................................................................36 Statement of Plan Net Assets..................................................................................................................36 Statement of Changes in Plan Net Assets .............................................................................................37 Notes to Financial Statements.................................................................................................................38 Required Supplementary Information ...............................................................................................................61 Schedule 1Schedule of Funding Progress .........................................................................................61 Schedule 2Schedule of Employer Contributions .............................................................................62 Other Supplementary Information .....................................................................................................................63 Schedule 1Investment Income by Specific Source ...........................................................................63 Schedule 2Schedule of Administrative Expenses ............................................................................64 Schedule 3Schedule of Investment Related Expenses.....................................................................65 Investments ...............................................................................................................................Pages 67106 Investment Overview............................................................................................................................................69 Investment Results ................................................................................................................................................74 Investment Policy and Goal Statement ..............................................................................................................90 Actuarial...................................................................................................................................Pages 107124 Actuarys Certification Letter ............................................................................................................................109 Principal Valuation Results................................................................................................................................115 Actuarial Balance Sheet ......................................................................................................................................116 Solvency Test........................................................................................................................................................117 Schedule of Active Member Valuation Data ...................................................................................................118 Retirees and BeneficiariesChanges in Rolls .................................................................................................118 Actuarial Assumptions and Methods...............................................................................................................119 Iowa Public Employees Retirement System ª Comprehensive Annual Financial Report 2009 v IOWA PUBLIC EMPLOYEES RETIREMENT SYSTEM Statistical..................................................................................................................................Pages 125142 Statistical Overview......................................................................................................................................................... 127 Changes in Net Assets ..........................................................................................................................128 Membership Summary .......................................................................................................................................130 Special Statistics .....................................................................................................................................130 IPERS Membership by Status ...............................................................................................................130 Membership by Group ..........................................................................................................................131 Average Benefit Payments for Retirees...............................................................................................132 New Retirees by Employer Group.......................................................................................................134 Average Benefit Payments by Retirement Date.................................................................................135 Schedule of Benefit Payments by Type of Benefit .............................................................................136 Schedule of Retired Members by Type of Benefit..............................................................................136 Retired Members by Benefit Option ....................................................................................................137 Active Membership Statistics................................................................................................................138 Analysis of Change in Active Membership ........................................................................................138 Principal Participating Employers .......................................................................................................139 Growth of Net Investment Portfolio Assets.....................................................................................................140 Investment Returns 19812009 ..........................................................................................................................141