TRS 2011 Comprehensive Annual Financial Report

TEACHER RETIREMENT SYSTEM OF TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT 2011
Actuarial Information Pension Trust Fund
Other Actuarial Information
The Schedule of Retirees, Beneficiaries and Disabled Participants Added to and Removed from Rolls, the Solvency Test, and the
Analysis of Financial Experience appear in the following tables:
Schedule of Retirees, Beneficiaries and Disabled Participants Added to and Removed from Rolls
Added to Rolls Removed from Rolls Rolls - End of Year
(1) (8) (9)
Valuation (3) (5) (7) % Increase Average
as of (2) Annual (4) Annual (6) Annual in Annual Annual
August 31 Number Allowances Number Allowances Number Allowances Allowances Allowance
2006 15,810 $324,292,542 7,175 $120,623,840 257,144 $5,282,107,571 4.0% $20,541
2007 15,861 336,348,640 7,698 131,295,705 265,307 5,487,160,506 3.9 20,682
2008 17,727 391,920,863 7,806 135,160,090 275,228 5,743,921,279 4.7 20,870
2009 17,326 392,452,923 7,940 136,537,511 284,614 5,999,836,691 4.5 21,081
2010 20,076 473,512,423 8,199 142,187,645 296,491 6,331,161,469 5.5 21,354
2011 24,688 620,038,676 8,499 147,985,004 312,680 6,803,215,141 7.5 21,758
Solvency Test
A short-term solvency test is one means of checking a retirement system’s progress under its funding program. The schedule
below provides a historical illustration of a short-term solvency test for TRS wherein present assets are compared with: (1) active
member contributions on deposit; (2) the liabilities for future benefits to present annuitants (Retirees and Beneficiaries); (3) the
liabilities for active members under the entry age normal actuarial cost method including a projection of future salary increases
and anticipated future service (Active Members (State Financed Portion)).
Under the level percent of payroll financing followed by TRS, liabilities for active member contributions on deposit and the liabilities
for future benefits to present retirees and beneficiaries will be fully covered by present assets except in rare circumstances. In
addition, liabilities for active member benefits earned or to be earned in the future will be partially covered by the remainder of
present assets. Generally, if the system has been using level cost financing, the funded portion of active member benefits will
increase over time.
A Schedule of Funding Progress including a 6-year Summary of Actuarial Accrued Liabilities and Unfunded Actuarial Accrued Liabilities
can be found in the Required Supplementary Information immediately following the Notes to the Financial Statements.
Solvency Test
(AMOUNTS SHOWN IN MILLIONS)
Aggregate Actuarial Accrued Liabilities For
Portion of Aggregate Actuarial Accrued
Liabilities Covered By Valuation Assets
(3) (4) (8)
(1) (2) Active Members (6) (7) Active Members
Valuation Active Retirees (State (5) Active Retirees (State
as of Member and Financed Valuation Member and Financed
August 31 Contributions* Beneficiaries* Portion) Assets Contributions* Beneficiaries* Portion)
2006 $ 20,590 $ 49,144 $ 38,177 $ 94,128 100% 100% 64.1%
2007 22,236 51,293 42,435 103,419 100 100 70.4
2008 23,928 53,243 44,585 110,233 100 100 74.2
2009 23,914 55,484 48,632 106,384 100 100 55.5
2010 27,559 58,476 48,156 111,293 100 100 52.5
2011 28,911 63,470 46,934 115,253 100 100 48.7
* Adjusted for pending transfers to retired reserve at August 31 for pending retirements.
ACTUARIAL SECTION
117