SURS ANNUAL REPORT 2019
1
Annual Financial
Report Summary
20
19
Board of Trustees .................................................................................................................................................. 1
Organizational Chart ............................................................................................................................................2
Executive Team ......................................................................................................................................................2
Awards & Recognition ..........................................................................................................................................2
A Message from Our Executive Director .........................................................................................................3
Membership ...........................................................................................................................................................4
Defined Benefit Plan
β Breakdown of Membership
β Number of Benefit Recipients β Five-Year Summary
β Average Annuity Payments for Retirees
Defined Contribution Plan
β Breakdown of Membership
β Participating Employers
Customer Service ..................................................................................................................................................5
Mission
Initiatives
Customer Service Statistics
Number of SURS Employees
Financial ..................................................................................................................................................................6
Highlights
Analysis
Condensed Statement of Plan Net Position
Condensed Statement of Changes in Plan Net Position
Funding ...................................................................................................................................................................7
Schedule of Employer Contributions
Historic Funding Ratios
Investments ............................................................................................................................................................8
Investment Policy
Policy Portfolio
Investment Objectives
Fiscal Year Investment Results
Long-Term Investment Results
Self-Managed Plan Assets
Employers ...............................................................................................................................................................9
Breakdown of Participating Employers
Employer List
Profile
SURS is the administrator of a cost-sharing, multiple-employer public employee retirement system
established July 21, 1941, to provide retirement annuities and other benefits for employees, survivors and
other beneficiaries of those employees of the state universities, community colleges, and certain other state
educational and scientific agencies. SURS services 61 employers and approximately 237,000 members and
annuitants. The plans administered by SURS include a defined benefit plan established in 1941 and a defined
contribution plan established in 1998.
SURS is governed by an 11-member board of trustees. Four trustees are elected by active SURS members,
two trustees are elected by retired SURS members, and five trustees are appointed by the governor of Illinois
(one of whom is the chairperson of the Illinois Board of Higher Education). The governor designates the
board chairperson from among the eleven trustees. All appointed trustees must be approved by the Illinois
Senate. Trustees serve six-year terms.
Table of Contents
SURS ANNUAL REPORT 2019
1
Board of Trustees
John Atkinson
Chairperson
Appointed
Collin Van Meter
Vice Chairperson
Elected
John Lyons
Treasurer
Appointed
Jamie-Clare Flaherty
Appointed
Aaron Ammons
Elected
Richard Figueroa
Appointed
Mitchell Vogel
Elected
Steven Rock
Elected
Antonio Vasquez
Elected
J. Fred Giertz
Elected
SURS ANNUAL REPORT 2019
2
Excellence in Financial Reporting Award
The Government Finance Officers Association of the United States and Canada (GFOA) awarded
a Certificate of Achievement for Excellence in Financial Reporting to SURS for its FY 2018
financial report. It was the 35th consecutive year the System has earned the award. To be awarded
the certificate, a governmental unit must publish an easily readable and efficiently organized
comprehensive annual financial report whose contents conform to program standards. The report
must satisfy both generally accepted accounting principles and applicable legal requirements.
The Public Pension Coordinating Council (PPCC), a coalition
of three national associations that represents more than
500 of the largest pension plans in the U.S., awarded
SURS the Public Pension Standards Award for Funding and
Administration. Public Pension Standards are a benchmark
to measure public defined benefit plans in the areas of
retirement system management, administration and funding.
Awards & Recognition
Organizational Chart
SURS Board of Trustees
Outside
Legal Counsel
Actuarial
Consultant
External
Auditors
Investment
Constultant
Executive
Director
Chief Financial
Oξcer
Chief Technology
Oξcer
Chief Beneο¬ts
Oξcer
Chief Human
Resources Oξcer
General
Counsel
Chief Internal
Auditor
Chief Investment
Oξcer
Executive Team
Executive Director ..........................................................................................................................Martin Noven
Chief Investment Officer ...............................................................................................................Doug Wesley
General Counsel ...............................................................................................................................Bianca Green
Chief Technology Officer ............................................................................................................Jefferey Saiger
Chief Financial Officer ........................................................................................................................ Tara Myers
Chief Benefits Officer .................................................................................................................Suzanne Mayer
Chief Human Resources Officer ..................................................................................................Brenda Dunn
Chief Internal Auditor .............................................................................................................. Jacqueline Hohn
SURS ANNUAL REPORT 2019
3
A MESSAGE FROM OUR EXECUTIVE DIRECTOR
In fiscal year 2019, SURS began working on several new initiatives to further improve
efficiency and enhance member services.
We created a far-reaching, seven-year plan for the modernization of our IT operations
that will include updating our data center, upgrading our cloud-based software, forms
automation, and advanced information security and recovery.
Website updates and process improvements will also be included in the modern-
ization process. We are planning visual, navigational and security improvements to our SURS website, our Member
Website and the Employer Website.
We have expanded our staff and facilities. The addition of IT engineers, project managers and member service rep-
resentatives (MSRs) is helping improve our processes and reduce our claims processing and call center wait times. In
fiscal year 2019, MSRs calculated over 8,600 claims, answered over 112,000 calls and held over 5,200 group and indi-
vidual counseling sessions. The average member satisfaction rate for counseling sessions and service calls was 95%.
In the midst of these developments, staff implemented two state-mandated buyout programs that involved major
retooling of SURS programs and processes as well as the creation of an extensive education program for members;
initiated a redesign of our Self-Managed Plan and the creation of a new supplemental savings plan; and began
researching improvements to our plan choice tools. All of which, when completed, will greatly help members with
retirement income.
In September 2018, SURS Board of Trustees approved an asset liability study to determine an appropriate long-term
asset allocation investment policy. Our investment team has begun implementing a new functional-based asset allo-
cation strategy based on the study. The new portfolio structure is designed to improve long-term returns with reduced
volatility and downside risk measures.
SURS continues to be committed to providing opportunities for investment management firms and broker/deal-
ers owned by minorities, women and persons with a disability (MWDB). This summer, SURS held its first Diverse
Managers Week in Champaign. Thirty MWDB-owned firms met with SURS investment staff and consultants with
the goal of increasing SURS asset allocation to MWDB firms.
For the seventh consecutive year, SURS received its full annual certified state contribution. The fiscal year 2019 pay-
ment was $1,655,154,000, with the final payment being received at the end of July 2019. However, the defined bene-
fit plan continues to be severely underfunded due to shortfalls in prior year contributions from the state. Our staff has
and will continue to work with legislators and the governorβs office to help ensure future funding.
Finally, I want to thank our staff and board of trustees for their hard work and commitment to providing quality,
friendly and efficient service. We are all committed to giving and doing our best in the coming year.
Martin Noven
Executive Director
Our commitment to
service is reflected in our
accomplishments and plans.
SURS ANNUAL REPORT 2019
4
At June 30, 2019, membership was:
Benefit Recipients* ξξ,ξξξ
Active Members ξξ,ξξξ
Inactive Members ξξ,ξξξ
ξξξ,ξξξ
*Does not include lump-sum refund recipients
At June 30, 2019, the number
of SMP participating employers was:
Universities ξ
Community Colleges ξξ
Allied Agencies ξ
State Agencies ξ
ξξ
Note: Excluded from the employer totals above is the
state of Illinois, a non-employer contributing entity.
At June 30, 2019, membership was:
Benefit Recipients ξξξ
Active Members ξξ,ξξξ
Inactive Members ξξ,ξξξ
ξξ,ξξξ
Number of Benefit Recipients 5-Year Summary
Disability
Fiscal Contribution Retirement
Year Survivors Disability Refunds Retirement Allowance
ξξξξ ξ,ξξξ ξξξ ξ,ξξξ ξξ,ξξξ ξξξ
ξξξξ ξ,ξξξ ξξξ ξ,ξξξ ξξ,ξξξ ξξξ
ξξξξ ξ,ξξξ ξξξ ξ,ξξξ ξξ,ξξξ ξξξ
ξξξξ ξ,ξξξ ξξξ ξ,ξξξ ξξ,ξξξ ξξξ
ξξξξ ξ,ξξξ ξξξ ξ,ξξξ ξξ,ξξξ ξξξ
Membership
DEFINED BENEFIT ξ TRADITIONAL & PORTABLE PLANS
Average Annuity Payments For Retirees as of June 30, 2019
Years of Credited Service
0β10 11β15 16β20 21β25 26β29 30+ Total
Number of Retirees ξξ,ξξξ ξ,ξξξ ξ,ξξξ ξ,ξξξ ξ,ξξξ ξ,ξξξ ξξ,ξξξ
Avg Monthly Annuity $ξξξ $ξ,ξξξ $ξ,ξξξ $ξ,ξξξ $ξ,ξξξ $ξ,ξξξ $ξ,ξξξ
Final Average Salary $ξξ,ξξξ $ξξ,ξξξ $ξξ,ξξξ $ξξ,ξξξ $ξξ,ξξξ $ξξ,ξξξ $ξξ,ξξξ
Avg Service Credit ξ.ξξ ξξ.ξξ ξξ.ξξ ξξ.ξξ ξξ.ξξ ξξ.ξξ ξξ.ξξ
SURS is the plan sponsor and administrator of a defined contribution plan
established as of January 1, 1998, by the Illinois General Assembly as an amend-
ment to the Illinois Pension Code through Illinois Public Act 90-0448. This
plan is referred to as the Self-Managed Plan (SMP) and is offered to employees
of all SURS employers who elect to participate. This plan is a qualified money
purchase pension plan under Section 401(a) of the Internal Revenue Code. The
assets of the SMP are maintained under a trust administered by the SURS
Board of Trustees in accordance with the Illinois Pension Code, and are made up
of the account balances of individual members.
DEFINED CONTRIBUTION ξ SELFξMANAGED PLAN
Benefit
Recipients
ξξ.ξ%
Inactive
ξξ.ξ%
Active
ξξ.ξ%
Defined Benefit Plan
SURS ANNUAL REPORT 2019
5
Mission
To secure and deliver the retirement benefits promised to our members.
Major Initiatives and Changes
There were major changes to SURS Board of Trustees in fiscal year 2019.
β’ In July 2018, three elected trustees Steven Rock, Collin Van Meter and John Engstrom began serving six-year terms.
β’ In April 2019, Gov. Pritzker appointed Richard Figueroa, Jamie-Clare Flaherty and John Lyons to the board. Trustee Figueroa is serving out the
remainder of a six-year term that will expire in June 2021. Trustees Flaherty and Lyons are serving out the remainder of six-year terms that
expire in June 2024.
β’ In June 2019, Trustee Engstrom resigned from the board after serving more than 10 years as a trustee. He was later replaced by SURS annui-
tant and former board member Mitchell Vogel.
SURS staff worked diligently to complete IT, safety and member service projects.
β’ We completed programming, communications and education efforts to implement two state-mandated
buyout options for members. Over 3.5 total work years of effort was spent modifying approximately 400
individual programs.
β’ Our member service representatives calculated over 8,600 claims, answered over 112,000 calls and held over 5,200 group and individual
counseling sessions.
β’ Renovations to the office building adjacent to our Champaign headquarters were completed to facilitate staff and equipment relocation. Over
15,000 sq. ft. were renovated.
β’ Office 365; a cloud-based mail, productivity and collaboration platform was introduced internally.
β’ SURS implemented new security and life safety tools, such as perimeter and interior monitoring of the main office.
β’ The data center UPS system was replaced to better safeguard member data and SURS equipment.
β’ Preliminary work began to redesign the Self-Managed Plan and implement a new supplemental plan.
Customer Service
Number of SURS Employees (full-time equivalents) β 10-Year Summary
Fiscal Human Resources Investments Member Services Information Systems Self-Managed
Year & Administration & Accounting & Outreach & Support Services Plan Total
ξξξξ ξξ.ξξ ξξ.ξξ ξξ.ξξ ξξ.ξξ ξ.ξξ ξξξ.ξξ
ξξξξ ξξ.ξξ ξξ.ξξ ξξ.ξξ ξξ.ξξ ξ.ξξ ξξξ.ξξ
ξξξξ ξ.ξξ ξ.ξξ ξξ.ξξ ξξ.ξξ ξ.ξξ ξξξ.ξξ
ξξξξ ξξ.ξξ ξξ.ξξ ξξ.ξξ ξξ.ξξ ξ.ξξ ξξξ.ξξ
ξξξξ ξξ.ξξ ξξ.ξξ ξξ.ξξ ξξ.ξξ ξ.ξξ ξξξ.ξξ
ξξξξ ξξ.ξξ ξξ.ξξ ξξ.ξξ ξξ.ξξ ξ.ξξ ξξξ.ξξ
ξξξξ ξξ.ξξ ξξ.ξξ ξξ.ξξ ξξ.ξξ ξ.ξξ ξξξ.ξξ
ξξξξ ξξ.ξξ ξξ.ξξ ξξ.ξξ ξξ.ξξ ξ.ξξ ξξξ.ξξ
ξξξξ ξξ.ξξ ξξ.ξξ ξξ.ξξ ξξ.ξξ ξ.ξξ ξξξ.ξξ
ξξξξ ξξ.ξξ ξξ.ξξ ξξ.ξξ ξξ.ξξ ξ.ξξ ξξξ.ξξ
Counseling
Individual Retirement Counseling Appointments ............ ξ,ξξξ
Written Retirement Estimates Mailed
.....................................ξξξ
Campus Visits
................................................................................... ξξ
Retirement Education Seminars
................................................. ξξ
Benefit Fairs
...................................................................................... ξξ
Webinars/Group Presentations
................................................... ξξ
Average Member Satisfaction Rating
.....................................ξξ%
Call Center
Incoming Calls ....................................................................... ξξξ,ξξξ
Member Satisfaction Rating
.....................................................ξξ%
Lobby Visits
Walk-in Visits .............................................................................. ξ,ξξξ
Member Satisfaction Rating
.....................................................ξξ%
Electronic Service
SURS Website Page Views .............................................ξ,ξξξ,ξξξ
SURS Member Website Visits
.......................................... ξξξ,ξξξ
SURS Employer Website Visits
...........................................ξξ,ξξξ
Webmails Received
................................................................... ξ,ξξξ
Informational Emails Sent To Members
........................ ξξξ,ξξξ
Claims Processed
Retirement ................................................................................... ξ,ξξξ
Refund
........................................................................................... ξ,ξξξ
Death
............................................................................................. ξ,ξξξ
Disability
........................................................................................... ξξξ
Support Services
Items Mailed .......................................................................... ξξξ,ξξξ
Documents Scanned
........................................................... ξξξ,ξξξ
SURS MEMBER SERVICESξOUTREACH STATISTICS ξ FISCAL YEAR 2019
SURS ANNUAL REPORT 2019
6
Financial Analysis of the System
The State Universities Retirement System serves 213,475 members in its defined benefit plan and 23,435 members in its Self-Managed
Plan. The funds needed to finance the benefits provided by SURS are accumulated through the collection of member and employer con-
tributions and through income on investments. The total net position of the System increased from $21.8 billion as of June 30, 2018 to
$22.4 billion as of June 30, 2019. This $0.6 billion change was chiefly due to an increase in investments.
Condensed Statement of Changes in Plan Net Position
Reporting Entity ($ in millions) Change Change
2019 2018 Amount %
Employer contributions $ ξξ.ξ $ ξξ.ξ $ ξξ.ξ ξξ.ξ
Non-employer contributing entity contributions ξ,ξξξ.ξ ξ,ξξξ.ξ ξξ.ξ ξ.ξ
Member contributions ξξξ.ξ ξξξ.ξ ξ.ξ ξ.ξ
Net investment income ξ,ξξξ.ξ ξ,ξξξ.ξ (ξξξ.ξ) (ξξ.ξ)
Total additions ξ,ξξξ.ξ ξ,ξξξ.ξ (ξξξ.ξ) (ξξ.ξ)
Benefits ξ,ξξξ.ξ ξ,ξξξ.ξ ξξξ.ξ ξ.ξ
Refunds ξξξ.ξ ξξξ.ξ (ξ.ξ) (ξ.ξ)
Administrative expense ξξ.ξ ξξ.ξ ξ.ξ ξξ.ξ
Total deductions ξ,ξξξ.ξ ξ,ξξξ.ξ ξξξ.ξ ξ.ξ
Net increase (decrease) in plan net position $ ξξξ.ξ $ ξ,ξξξ.ξ $ (ξξξ.ξ) (ξξ.ξ)
Additions
Additions to plan net position are in the form of employer and member contributions and returns on investment funds. For fiscal year
2019, non-employer contributing entity contributions increased by $25.9 million due to higher contributions from the state of Illinois as
a result of a change in the plan election assumptions due to the provisions of Public Act 100-0023. Employer contributions increased by
$10.1 million or 21.0%. Member contributions increased by $1.7 million or 0.5%. Net investment income for fiscal year 2019 was $1,292.4
million for the System, representing a $466.4 million decrease from the prior year. For the defined benefit plan, the overall rate of return
was 6.0% (net of all investment management fees).
Financial
Condensed Statement of Plan Net Position
Reporting Entity ($ in millions) Change Change
2019 2018 Amount %
Cash and short-term investments $ ξξξ.ξ $ ξξξ.ξ $ ξξξ.ξ ξξ.ξ
Receivables and prepaid expenses ξξξ.ξ ξξξ.ξ ξξ.ξ ξξ.ξ
Pending investment sales ξξξ.ξ ξξξ.ξ ξξ.ξ ξξ.ξ
Investments and securities lending collateral ξξ,ξξξ.ξ ξξ,ξξξ.ξ ξξξ.ξ ξ.ξ
Capital assets, net ξ.ξ ξ.ξ ξ.ξ ξξ.ξ
Total assets ξξ,ξξξ.ξ ξξ,ξξξ.ξ ξξξ.ξ ξ.ξ
Payable to brokers-unsettled trades ξξξ.ξ ξξξ.ξ (ξξξ.ξ) (ξξ.ξ)
Securities lending collateral ξξξ.ξ ξξξ.ξ ξξ.ξ ξξ.ξ
Other liabilities ξξξ.ξ ξξ.ξ ξξ.ξ ξξ.ξ
Total liabilities ξ,ξξξ.ξ ξ,ξξξ.ξ ξξ.ξ ξ.ξ
Total plan net position $ξξ,ξξξ.ξ $ξξ,ξξξ.ξ $ ξξξ.ξ ξ.ξ
Overall, net position increased by $625.4 million, or 2.9%, mainly due to the total investment income. The increase in receivables and
prepaid expenses is largely due to the increase in the receivable from brokers for unsettled trades at fiscal year end as a result of a larger
number of trades outstanding for fiscal year 2019 compared to 2018.
FINANCIAL HIGHLIGHTS FOR FISCAL YEAR 2019
β’ Contributions from the state and employers were $1,713.3 million, an increase of $36.0 million, or 2.1% from fiscal year 2018.
β’ The Systemβs benefit payments were $2,617.2 million, an increase of $119.3 million or 4.8% for fiscal year 2019.
β’ The Systemβs return on investment, net of investment management fees, was 6.0% for fiscal year 2019.
β’ The Systemβs net position at the end of fiscal year 2019 was $22.4 billion, an increase of $625.4 million or 2.9%.
SURS ANNUAL REPORT 2019
7
Funding
SURS is funded through contributions from non-employer, employer and employee contributions as well as investment 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.
Annually, the SURS actuary determines the annual βstatutory contributionβ needed to meet current and future benefit obligations in accordance
with the Illinois Pension Code, which sets forth the manner of calculating the statutory contribution under the Statutory Funding Plan. The
Statutory Funding Plan requires the state to contribute annually an amount equal to a constant percent of pensionable (capped) payroll necessary
to allow the System to achieve a 90% funded ratio by fiscal year 2045, subject to any revisions necessitated by actuarial gains or losses, or actuari-
al assumptions.
The majority of the $1.66 billion statutory contribution for fiscal year 2019 was received through continuing appropriation based on 40 ILCS
15/1.1(b). As of June 30, 2019, the plan net position as a percentage of the total pension liability was 40.71%. The funding issue confronting SURS
continues to represent a challenge to the System. Although the statutory contribution requirement was met in fiscal year 2019, the Statutory
Funding Policy creates a perpetual contribution variance of underfunding the System in earlier years. In later years, the statutory contribution
would exceed a contribution equal to normal cost plus a 30-year closed period level percent of pay amortization of the unfunded liability.
0
20
40
60
80
100
20192018201720162015201420132012201120102009200820072006
65.4%
68.4%
58.5%
54.3%
46.4%
44.3%
42.1%
41.5%
42.3%
43.3%
43.3%
44.4%
42.8%
42.3%
Historical Funding Ratios
Starting with fiscal year ξξξξ, the funding ratios were calculated using the actuarial value of assets. Prior to FY ξξξξ, the market
value of assets were used.
Fiscal Year
Schedule of Contributions from Employers and Other Contributing Entities ($ thousands)
Actual Contribution
Actuarially Other Contribution Actual Contribution
Determined Contributing Deficiency Covered as a % of
Fiscal Year Contribution Employers Entities (Excess) Payroll Covered Payroll
ξξξξ $ ξ,ξξξ,ξξξ $ ξξ,ξξξ $ ξξξ,ξξξ $ ξξξ,ξξξ $ ξ,ξξξ,ξξξ ξξ.ξξ
ξξξξ ξ,ξξξ,ξξξ ξξ,ξξξ ξξξ,ξξξ ξξξ,ξξξ ξ,ξξξ,ξξξ ξξ.ξξ
ξξξξ ξ,ξξξ,ξξξ ξξ,ξξξ ξξξ,ξξξ ξξξ,ξξξ ξ,ξξξ,ξξξ ξξ.ξξ
ξξξξ ξ,ξξξ,ξξξ ξξ,ξξξ ξ,ξξξ,ξξξ ξξξ,ξξξ ξ,ξξξ,ξξξ ξξ.ξξ
ξξξξ ξ,ξξξ,ξξξ ξξ,ξξξ ξ,ξξξ,ξξξ ξξ,ξξξ ξ,ξξξ,ξξξ ξξ.ξξ
ξξξξ ξ,ξξξ,ξξξ ξξ,ξξξ ξ,ξξξ,ξξξ ξξ,ξξξ ξ,ξξξ,ξξξ ξξ.ξξ
ξξξξ ξ,ξξξ,ξξξ ξξ,ξξξ ξ,ξξξ,ξξξ ξξξ,ξξξ ξ,ξξξ,ξξξ ξξ.ξξ
ξξξξ ξ,ξξξ,ξξξ ξξ,ξξξ ξ,ξξξ,ξξξ ξξξ,ξξξ ξ,ξξξ,ξξξ ξξ.ξξ
ξξξξ ξ,ξξξ,ξξξ ξξ,ξξξ ξ,ξξξ,ξξξ ξξξ,ξξξ ξ,ξξξ,ξξξ ξξ.ξξ
ξξξξ ξ,ξξξ,ξξξ ξξ,ξξξ ξ,ξξξ,ξξξ ξξξ,ξξξ ξ,ξξξ,ξξξ ξξ.ξξ
SURS ANNUAL REPORT 2019
8
Policy vs. Actual
Percentage
U.S.
Equities
23.0
22.6
Non-U.S.
Equities
19.2
19.0
Global
Equities
8.0
8.0
Emerging
Market
Debt
3.2
3.0
Private
Equities
7.1
6.0
TIPS
3.7
4.0
Commodities
1.9
2.0
Real
Estate
8.7
10.0
Hedged
Strategies
5.0
4.0
25%
20%
15%
10%
5%
0%
Fixed
Income
21.0
19.0
Opportunity
Fund
0.6
1.0
Investment Policy
The investment policy of SURS provides an efficient allocation of assets to achieve overall risk and return objectives. Periodically, asset allocation
studies are completed to provide an efficient allocation of assets to achieve overall risk and return objectives. The asset/liability study completed in
September 2018 will result in significant structural changes to SURS asset allocation targets over the next few years. The foundation of these changes
will be a transition from conventional asset classes to functional asset classes as the basis of portfolio weighting. The transition to functional classes
will begin during fiscal year 2020. The long-term strategic asset allocation targets in place during FY 2019 are shown in the following chart.
Investments
Self-Managed Plan
Fiscal year 2019 marks the 21st complete year of the Self-Managed Plan (SMP). As of June 30, 2019, the SMP had accumulated plan assets of
approximately $2.7 billion. This represents an increase of approximately $229 million since the end of fiscal year 2018. Contributing to the growth
in plan assets was a market-related increase of $163 million. During the past several years, SMP participants have continued to maintain a balanced
exposure to equities. In aggregate, the total funds invested by SMP participants have an allocation of 74% equity, 24% fixed income, and 2% real
estate. This was a 1% decrease in the equity allocation as compared to last yearβs position.
SURS Total Fund
Policy Portfolio
Total Fund
Growth of $ξ,ξξξ
19
$ξ,ξξξ
$ξ,ξξξ
09 11 13 15 17
0
500
1,000
1,500
2,000
2,500
$3,000
Investment Objectives
The investment objective of the total portfolio is to produce annualized
investment returns, net of all management fees, which exceed the return
of a composite market benchmark or policy portfolio. The policy portfolio
is comprised of market indices which are consistent with the overall asset
allocation. The policy portfolio reflects a passive implementation of the
investment policy.
Fiscal Year 2019 Results
For the fiscal year ended June 30, 2019, SURS total fund returned 6.0%,
trailing the market goal, or policy portfolio, by 0.8%. For the period, six of
the 12 asset class portfolios β global equity, TIPS, emerging market debt,
REITs, direct real estate, and commodities β met or exceeded the returns
of their respective benchmarks. Strong absolute returns were experienced
in U.S. equity, global equity, private equity, fixed income, emerging market
debt, REITs, and direct real estate.
Long-Term Investment Results
For the 10-year period ended June 30, 2019, SURS total fund earned an
annualized total return, net of all investment management expenses, of
9.7%. This trailed the policy portfolio benchmark by 0.2% annualized. This
performance is best illustrated by the growth of $1,000 invested in SURS
total fund and the policy portfolio during the past 10 years. The ending
points indicate that $1,000 invested in SURS total fund would have grown
to $2,523, while the same $1,000 invested in the policy portfolio would
have grown to $2,578. (See chart at right)
SURS ANNUAL REPORT 2019
9
ξξξξ
Universities ξ
Community Colleges ξξ
Allied Agencies ξξ
State Agencies ξ
ξξ
Note: Excluded from the employer totals above is the state of Illinois,
a non-employer contributing entity.
Black Hawk College
Carl Sandburg College
Chicago State University
City Colleges of Chicago
College of DuPage
College of Lake County
Danville Area Community College
Eastern Illinois University
Elgin Community College
Governors State University
Heartland Community College
Highland Community College
ILCS Section 15-107(I) Members
ILCS Section 15-107(c) Members
Illinois Board of Examiners
Illinois Board of Higher Education
Illinois Central College
Illinois Community College Board
Illinois Community College Trustees Association
Illinois Department of Innovation and Technology
Illinois Eastern Community Colleges
Illinois Mathematics and Science Academy
Illinois State University
Illinois Valley Community College
John A. Logan College
John Wood Community College
Joliet Junior College
Kankakee Community College
Kaskaskia College
Kishwaukee College
Lake Land College
Lewis & Clark Community College
Lincoln Land Community College
McHenry County College
Moraine Valley Community College
Morton College
Northeastern Illinois University
Northern Illinois University
Northern Illinois University Foundation
Oakton Community College
Parkland College
Prairie State College
Rend Lake College
Richland Community College
Rock Valley College
Sauk Valley College
Shawnee College
South Suburban College
Southeastern Illinois College
Southern Illinois University β Carbondale
Southern Illinois University β Edwardsville
Southwestern Illinois College
Spoon River College
State Universities Civil Service System
State Universities Retirement System
Triton College
University of Illinois β Alumni Association
University of Illinois β Chicago
University of Illinois β Foundation
University of Illinois β Springfield
University of Illinois β Urbana
Waubonsee Community College
Western Illinois University
William Rainey Harper College
Number of defined benefit plan participating employers
Employers
SURS Participating Employers
SURS ANNUAL REPORT 2019
10
State Universities Retirement System of Illinois
A Component Unit of the State of Illinois
1901 Fox Drive β’ Champaign, Illinois 61820
Toll Free 800-275-7877 β’ Direct 217-378-8800
www.surs.org
S U R S
STATE UNIVERSITIES RETIREMENT SYSTEM
