TRS Updates GSSA Bootstrap TRS Update April 22
TRS Updates! GSSA Bootstrap TRS Update April 22, 2021 L. C. (Buster) Evans Executive Director
TRS Overview • Founded in 1943 operational in 1945 • We serve: K-12, Most College and University, Technical Colleges, County Extension Agents, and Public Libraries • Over 400, 000 Members (140, 000 retired; 240, 000 active; 30, 000+ active non-contributing/other) • 23 rd largest pension system in nation • Assets over $98 billion • Funded at 77% • $5 billion annual payroll
Board of Trustees Ms. Deborah K. Simonds Chair Elected by the Board of Trustees 3 -Year Term Expiring 06/30/21 Ms. Miriam Shook Appointed by the Governor 3 -Year Term Expiring 06/30/23 Dr. William G. Sloan Appointed by the Governor 3 -Year Term Expiring 06/30/23 Ms. Marion R. Fedrick Appointed by the Board of Regents 3 -Year Term Expiring 06/30/21 Mr. Christopher M. Swanson Appointed by the Governor 3 -Year Term Expiring 06/30/24 Mr. Thomas W. Norwood Vice Chair Elected by the Board of Trustees 3 -Year Term Expiring 06/30/23 Mr. Greg S. Griffin Mr. Steven N. Mc. Coy State Auditor State Treasurer Ex-Officio Member Ex-Officio Member Dr. Jason L. Branch Mr. Kenneth Dyer Appointed by the Governor 3 -Year Term Expiring 06/30/21 3 -Year Term Expiring 06/30/23
TRS Leadership Team L. C. (Buster) Evans Executive Director Vonnie Stewart Executive Assistant Laura Lanier Chief Financial Officer Winston Buckley Communications & Outreach Director Paige Donaldson Contact Management & Employer Services Director Sonya Kinley Human Services Director Eddy Hicks Controller Dina Jones Member Services Director Cory Buice Retirement Services Director Gregory Mc. Queen Chief Technology Officer
Annual Retirement Quiz • What is the average at retirement nationally? • What is the average at retirement in Georgia? • What is the average at retirement for TRS retirees?
TRS Update Over 400, 00 Members Actively Contributing Retirees Active Status 300 000 280 000 272 794 253 868 260 000 240 000 271 991 258 117 244 195 226 559 222 043 220 000 216 167 213 674 239 758 209 865 239 741 209 855 244 169 214 012 249 969 218 214 256 330 222 917 276 915 261 556 226 061 229 268 232 284 200 000 180 000 160 000 140 000 120 000 103 198 2009 2010 2011 2012 2013 108 100 2014 Active Status = Contributions Received During Last 4 Years 113 066 2015 117 918 2016 122 629 2017 127 223 2018 131 802 2019 135 619 2020
TRS Membership Analysis – Retiree Annual Benefit - FY 20 Year End Tabulation Average Yearly Retiree Benefit – Top Ten Counties $46 000 $45 000 $44 000 $43 000 $42 000 $41 000 $40 000 $39 000 $38 000 $37 000 Oconee Fulton Clarke De. Kalb Greene Rabun Fayette Dawson Morgan Residency Maps: Where Our TRS Members Retirees Reside https: //www. trsga. com/residency-maps/ Towns
COVID Data Trends • Increased returns on investments • Fewer retirements for FY 2020 with indicators of a FY 2021 increase • Fewer “withdrawals” from members terminating employment • Increased deaths among beneficiaries • Fewer retirees wanting to “return to work” in schools Please be sure to check your named beneficiary!!!
TRS Fund Since COVID 3/2020 - 2/2021 Net Position - Rolling 12 Months (in thousands) 101 000 96 000 91 000 86 000 81 000 76 000 71 000 March April May June July August September October November December January February
TRS Investment Returns! TRS Total Return ending 6/30/2020 TRS Total Returns By Time Periods 10, 00% 1 Year 5. 42% 3 Year 7. 04% 5 Year 6. 94% 6, 00% 10 Year 9. 08% 4, 00% 15 Year 6. 86% 20 Year 5. 74% 25 Year 7. 70% 30 Year 8. 32% 9, 00% 8, 00% 7, 00% 5, 00% 3, 00% 2, 00% 1, 00% 0, 00% 1 Year 3 Year 5 Year 10 15 20 25 30 Year Year • Georgia’s one year return for FY 2020 was among the best in the nation. • Longer term returns continue to generally exceed assumed rates of return.
Plan & Retirement Information Option 3 Pop-Up 6% Option 2 Pop-Up 11% Option 4 1% Option 3 5% March 1, 2021 137, 089 Total Payees Option 2 14% Maximum Plan 58% February 1, 2021 March 1, 2021 Service Retirees 123, 192 123, 064 Avg. Monthly Benefit $3, 432 $3, 430 Avg. Service Credit 25. 70 Avg. Age at Retirement 59 59 Avg. Age at Payment 71 71 Total Benefit Payroll $452. 6 Million $452. 0 Million 99% Option 1 5% EFT
TRS Update Fewer Retirements? 6 550 6 450 SERVICE RETIREMENTS 6 450 FISCAL YEAR COMPARISON DATA 6 350 6 289 6 240 8 000 7 000 6 482 5 954 6 276 7 224 6 146 6 394 6 461 6 240 6 450 6 289 6 116 5 000 6 150 6116 6 050 4 000 3 000 2 000 1 000 0 5 950 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 5 850 # OF SERVICE RETIREMENTS FY 17 FY 18 FY 19 FY 20
TRS Update FY 2021 Retirements New Retirement Comparisons 800 700 600 500 400 300 200 100 0 RETIRED- FY 21 JULY 753 678 AUGUST 328 473 SEPTEMBER 250 441 OCTOBER 217 344 RETIRED- FY 20 NOVEMBER 227 246 RETIRED- FY 21 DECEMBER 214 315 JANUARY 499 747 FEBRUARY 218 238 MARCH 167 196
Increased Deaths? ? ? Beneficiary Deaths COVID Era 450 400 350 300 250 200 150 100 50 0 July August September October FY 2020 FY 2021 November Difference December January February
Retired Deaths
Legislative Update What happened? • HB 385 return to work…sent to actuary • SB 267 beneficiary change bill heard but no action • Pension reform? Not a topic this session • Employer contribution rates - FY 2022 @ 19. 81% and relatively stable Teacher bonuses: • Not subject to TRS contributions • Available to retirees returning to work at 49% ($490)
Top Questions • When can I retire? • How much will my benefit be? • What about my insurance? • Can I go back to work for a TRS employer after I retire? • What types of service credit can I purchase? • Will there be changes to the TRS plan? • What about the $1, 000 bonuses?
My Favorite Stat!!! • As of March 31, 2021, 67 of our beneficiaries are over 100… and 4 of them are men!
Thank You! Questions?
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