Champaign, IL - The State Universities Retirement System (SURS) Board of Trustees on Dec. 4 voted to certify the System’s fiscal year 2022 state contribution at $2,101,279,000, an increase of $105,512,000 from FY 2021.
Each year, an independent actuary retained by SURS evaluates the System and determines the required state contribution under the formula outlined in Illinois law (40 ILCS 5/15-155). The formula requires the state to make an annual contribution to SURS that will allow it to reach a funded status of 90% by the end of fiscal year 2045. Several actuarial assumptions impact the state contribution including the investment return, mortality rates and salary growth. The board is required to certify the final state contribution by January 15 for the upcoming fiscal year. SURS fiscal year is July 1 through June 30.
The board also voted to change the System’s effective rate of interest from 6.5% for fiscal year 2021 to 6% for fiscal year 2022. The SURS effective rate of interest is used for the calculation of service credit purchases, refunds of survivor and excess contributions, Traditional and Portable defined benefit plan refunds, and lump-sum Portable plan retirements.
In other business, the board:
- Approved the Fiscal Year 2020 Actuarial Valuation Report and the GASB 67/68 Report as of June 30, 2020. Both reports are posted on surs.org – http://www.surs.org/actuarial-valuation-reports-experience-studies.
- Approved increasing diversity goals as outlined in the defined benefit plan Investment Policy. The policy is posted on surs.org - http://www.surs.org/policy-and-procurement-practices.