“A preliminary analysis indicates
that TRS investments will perform better in fiscal year 2017 than they did in
fiscal year 2016 due to a booming stock market and an improving economy. On
March 31 – three-quarters of the way through fiscal year 2017 – TRS investment
returns were a positive 8.84 percent, net of fees. During fiscal year
2016, TRS returns at the end of three quarters stood at a negative
1.87 percent, net of fees. These results continued an upward trend in
returns recorded by TRS within the last year.
“On Dec. 31, 2016 – the midway point
in fiscal year 2017 – returns stood at a positive 4.64 percent, compared
to a negative 2.74 percent at the same point in fiscal year 2016. For
calendar year 2016, TRS investment returns were a positive 7.59 percent.
In calendar year 2015, TRS investments returned a positive 1.07 percent.
All returns were net of fees.
“On March 31, 2017, TRS had $47.3 billion
in assets. A year ago, the System had $43.8 billion and finished fiscal
year 2016 with $45.2 billion. In addition, TRS is on schedule to receive
its entire $4 billion state government contribution for fiscal year 2017.
Each year the contribution is received in 12 installments.
“Yet, despite the good news that TRS
will receive its entire fiscal year 2017 contribution, the $4 billion
falls $2.08 billion short of a contribution that the TRS actuaries would
label as 'full funding.' State government has underfunded TRS every
year for more than 75 years. In fiscal year 2017, the state contribution should
have been $6.07 billion. This chronic underfunding is the main cause of
the System’s $71.4 billion unfunded liability” (TRS of Illinois).
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