2011 Annual TCRS Report - Tennessee Department of Treasury

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T E N N E S S E E C O N S O L I D A T E D R E T I R E M E N T S Y S T E M PUBLIC PENSION COORDINATING COUNCIL AWARD P A G E 2
I N T R O D U C T O R Y S E C T I O N CHAIRMAN OF THE BOARD’S LETTER STATE OF TENNESSEE DAVID H. LILLARD, JR. STATE TREASURER 615.741.2956 David.Lillard@tn.gov TREASURY DEPARTMENT STATE CAPITOL NASHVILLE, TENNESSEE 37243-0225 December 21, 2011 Dear Members of the Tennessee Consolidated Retirement System: It is my pleasure to submit this annual financial report of the Tennessee Consolidated Retirement System. This is the twenty-fourth consecutive year that the financial report is being submitted to the Government Finance Officers Association for review. All previous reports have received the Certificate of Achievement for Excellence in Financial Reporting. Administration: To better serve our members, the TCRS website (located at www.tn.gov/treasury/tcrs) includes a benefit calculation module which allows members to input a limited amount of data to obtain a retirement benefit estimate. Furthermore, TCRS forms and up-to-date information are available online to assist our members and participating employers. Information systems are continuing to be enhanced to allow for additional user-friendly access for members. Investments: The year ending June 30, 2011 was an exceptional year for investors and TCRS produced a 19.59% return which was the best annual return for the fund since 1986. The fund gained 3.76% annually for the trailing three-year period and 4.54% for the trailing five-year period. While the fund has achieved its targeted return of 7.5% for the long-run, the trailing ten-year return of 4.89% exemplifies the challenging period investors have endured. These positive results are a direct reflection of the conservative, highlydiversified investment strategy implemented by Treasury. Going forward, the fund is well-positioned to continue to produce solid risk-adjusted returns. Financial Soundness of the Plan: Members of the retirement system should be assured that the benefits promised will be paid. TCRS is considered one of the best-funded pension plans in the nation. TCRS has received a AAA long-term rating and an A-1(+) short-term rating by Standard and Poor’s (S&P), the highest possible ratings issued by this nationally-recognized rating agency. The actuarial valuation, as of July 1, 2011, reported a combined state and teacher funding ratio of over 92 percent. The General Assembly, the Board of Trustees and the TCRS staff have worked diligently to provide the best possible management of the system, invest the system assets in a prudent manner without undue risk, fund the system on an actuarially-strong basis and provide the best possible services to the members in the system. Sincerely, David H. Lillard, Jr., State Treasurer Chairman of the Board P A G E 3
Page 2 and 3: T ENNESSEE CONSOLIDATED R ETIREMENT
Page 4 and 5: TABLE OF CONTENTS INTRODUCTORY SECT
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T E N N E S S E E C O N S O L I D A
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ACTUARIAL SECTION The Lorraine Mote
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S T A T I S T I C A L S E C T I O N
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2011 Annual TCRS Report - Tennessee Department of Treasury

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