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FINANCIAL SECTION Notes to Financial Statements (continued) (Dollar Amounts in Thousands) Fiscal Year Commonwealth ARC/AOC PSERS’ ARC/ AOC PSERS’ Net OPEB 2012 $ 870,200 $ 3,132 $ 871 2011 883,160 3,179 1,070 2010 850,440 3,705 1,460 8. Litigation and Contingencies The System is subject to various threatened and pending lawsuits. These lawsuits include issues related to benefit calculations and eligibility. It is the opinion of management that the ultimate liability arising from such threatened and pending litigation will not have a material effect on the financial position of the System. The System is exposed to various other liabilities and risks related to fiduciary responsibilities of directors and officers. 9. Commitments As of June 30, 2012, PSERS had commitments for the future purchase of investments in alternative investments of $4.9 billion and real estate of $2.3 billion. 10. Subsequent Events The System has performed an evaluation of subsequent events through September 18, 2012, the date the basic financial statements were available to be issued. No material events were identified by the System. This space intentionally left blank PAGE 59
Valuation as of June 30 FINANCIAL SECTION Required Supplementary Schedule 1 Schedules of Funding Progress* (Unaudited – See Accompanying Auditor’s Report) (Dollar Amounts in Millions) Pension (1) (2) (3) (4) (5) (6) Actuarial accrued liabilities (AAL) Actuarial value of assets Unfunded actuarial accrued liabilities UAAL (1) - (2) Ratio of assets to AAL (2) / (1) Covered payroll UAAL as a percentage of covered payroll (3) / (5) 2011 $ 85,640.4 $ 59,141.1 $ 26,499.3 69.1% $ 12,910.0 205.3% 2010 79,005.4 59,306.8 19,698.6 75.1% 12,788.8 154.0% 2009 75,520.7 59,781.6 15,739.1 79.2% 12,524.6 125.7% 2008 70,845.6 60,922.1 9,923.5 86.0% 11,921.5 83.2% 2007 66,495.8 57,057.8 9,438.0 85.8% 11,410.3 82.7% 2006 64,627.3 52,464.7 12,162.6 81.2% 11,419.0 106.5% Valuation as of June 30 Premium Assistance (1) (2) (3) (4) (5) (6) Actuarial accrued liabilities (AAL) Actuarial value of assets Unfunded actuarial accrued liabilities UAAL (1) - (2) Ratio of assets to AAL (2) / (1) Covered payroll UAAL as a percentage of covered payroll (3) / (5) 2011 $ 1,339.4 $ 111.3 $ 1,228.2 8.3% $ 12,910.0 9.5% 2010 1,162.2 116.8 1,045.4 10.1% 12,788.8 8.2% 2009 1,159.0 105.1 1,053.9 9.1% 12,524.6 8.4% * The amounts reported above in the Schedule of Funding Progress do not include assets or liabilities for the HOP. Each time a new benefit is added which applies to service already rendered, an “unfunded accrued liability” is created. The laws governing PSERS require that these additional liabilities be financed systematically over a period of future years. Also, if actual financial experiences are less favorable than assumed financial experiences, the difference is added to unfunded accrued liabilities. In an inflationary economy, the value of the dollar is decreasing. In this environment, employees pay in greater dollar amounts, resulting in a dollar increase in unfunded accrued liabilities. This occurs at a time when the actual substance of these items may be decreasing. Looking at just the dollar amounts of unfunded accrued liabilities can be misleading. Unfunded accrued liabilities divided by active employee payroll provides an index which clarifies understanding. The smaller the ratio of unfunded liabilities to covered payroll, the stronger the system. Observation of this relative index over a period of years will give an indication of whether the system is becoming financially stronger or weaker. PAGE 60
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PENNSYLVANIA PUBLIC SCHOOL EMPLOYEE
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INTRODUCTORY SECTION Table of Conte
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INTRODUCTORY SECTION This page inte
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INTRODUCTORY SECTION Letter of Tran
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Page 67 and 68: Dear Members of The PSERS Board of
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STATISTICAL SECTION Schedule of Pen
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STATISTICAL SECTION Schedule of Ave
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A__________________ Abington Abingt
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Schedule of Employers (Continued) O
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Schedule of Employers (Continued) A
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