Public Accountability Report Public Accountability Report

State Universities Retirement System
(Appropriated Spending in Thousands)
  FY 2018 FY 2017
Reporting Programs Expenditures Headcount Expenditures Headcount
Benefits Administration $ 1,568,221.0 126.0 $ 1,612,164.5 115.0
Benefits Administration-Self-Managed Plan $ 61,086.6 3.0 $ 59,261.5 4.0
Non-Reporting Programs
Community College Health Insurance  $ 4,133.3 N/A $ 4,309.1 N/A
Totals $ 1,633,440.9 129.0 $ 1,675,735.1 119.0

Totals may not add due to rounding.

Agency Narrative
The State Universities Retirement System (SURS) is the administrator of a cost-sharing, multiple-employer defined benefit plan and a multiple-employer defined contribution plan. The SURS Board of Trustees consists of six elected and five appointed board members. Legislation effective January 1, 1998 required SURS to introduce a portable benefit package to the existing traditional defined benefit plan and to offer a defined contribution plan. The defined contribution plan is known as the self-managed plan (SMP). SURS is included in the State of Illinois’ financial reports as a component unit. SURS is governed by Chapter 40, Act 5, Article 15 of the Illinois Compiled Statutes. These statutes assign the authority to establish and amend the benefit provisions of the plan to the State Legislature. The Illinois Constitution provides that the pension obligation of the state shall be an enforceable contractual relationship, the benefits of which shall not be diminished or impaired. Public Act 96-0889 revised the traditional and portable benefit plans for members who began participation on or after January 1, 2011 and who do not have other eligible Illinois reciprocal system services. The revised plan is referred to as Tier 2. New employees are allowed six months after their date of hire to make an irrevocable election. SURS was established on July 12, 1941 to provide retirement annuities and other benefits for staff members and employees of the state universities, certain affiliated organizations, and certain other state educational and scientific agencies and for the survivors, dependents, and other beneficiaries of such employees. The mission of SURS is to secure and deliver the retirement benefits promised to our members. The funds needed to finance the benefits provided by SURS are accumulated through the collection of member and employer contributions and through income on investments. In accordance with Chapter 40, Act 5, Article 15 of the Illinois Compiled Statutes, members of the traditional and portable benefit package contribute 8 percent of their gross earnings; 6.5 percent of those are designated for retirement annuities, 0.5 percent for post-retirement increases, and 1 percent for survivor benefits. Police officers and fire fighters contribute 9.5 percent of earnings; the additional 1.5 percent is a normal retirement contribution. Members of the defined contribution plan (SMP) contribute 8 percent of their gross earnings. The State of Illinois, a non-employer contributing entity, provides funding from two sources: the General Revenue Fund and the State Pensions Fund, which is funded with proceeds from unclaimed property. The State of Illinois’ Statutory Funding Plan requires the state to contribute annually an amount equal to a constant percent of pensionable (capped) payroll necessary to allow SURS to achieve a 90-percent funded ratio by fiscal year 2045.