What is a funded ratio?
A. The funded ratio places the unfunded liabilities in the context of the retirement system's assets. Expressed as a percentage of a system's liabilities, the funded ratio is calculated by dividing net assets by the actuarial accrued liabilities. The result is the percentage of the accrued liabilities that are covered by assets. At 100, a system has sufficient assets to pay all benefits earned to date by all its members. However, in a February 2012, article for Governing magazine Girard Miller states that to actually be fully funded a pension system should have a funded ratio of 125 (calculating assets at market value).
|Plan Name||Funded Ratio|
|Illinois SURS (Defined Only)||44.3%|
Source: All funded ratios are from each systems' Fiscal Year 2011 Comprehensive Annual Financial Report, which are available online.