Summary of Report 00-006

December 1999

Report Number 00-006

The Teacher Retirement System's (System) fiscal year 1999 financial statements are materially correct in accordance with generally accepted accounting principles. Our audit opinion dated November 12, 1999, is included in the financial section of the System's Comprehensive Annual Financial Report, which was released on November 19, 1999.

For the second consecutive year, we report no significant audit recommendations for the System in the area of financial reporting. We noted excellent communication and coordination between the eight System departments responsible for producing the annual financial report.

• The net assets of the pension trust fund increased by $13.4 billion, from $66.5 billion to $79.9 billion. This is a 20 percent increase compared to a 7 percent increase last year.

• The System's pension plan remains fully funded for the second consecutive year and current assets together with future contributions required by law will be sufficient to pay benefits to retirees and to current active members when they retire.

• Continuation of the retiree insurance plan will require legislative action to address long-term funding needs. System management estimates that the retiree insurance plan has sufficient funding to continue operating through fiscal year 2001. The System's management is reporting the funding performance and projections for the retiree insurance plan monthly to legislative leadership, the Governor's Office of Budget and Planning, the Legislative Budget Board, and our Office.

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