DIVISION OF PENSIONS AND BENEFITS - New Jersey Legislature · DIVISION OF PENSIONS AND BENEFITS A Department of the State of New Jersey COMPREHENSIVE ANNUAL FINANCIAL REPORT for …

Our mission is to provide

quality benefits and services

that meet the needs of our clients and others

we are committed to serve,

through our efficient and responsive workforce.

DIVISION OF PENSIONS AND BENEFITS

A Department of the State of New Jersey

COMPREHENSIVE ANNUAL FINANCIAL REPORT

for the Fiscal Year Ended

June 30, 2013

Our Vision . . . WE will achieve client satisfaction through equi-table, effective, responsive service, and clear andaccessible communications that meet the needs ofour clients.

WE will encourage and support an accomplishedworkforce that is knowledgeable, flexible, techni-cally proficient and committed to excellence.

WE will be committed to working with executiveand legislative agencies and governing boards toimprove the design and implementation of thebenefit programs.

WE will support technologies that simplify pro-cedures and improve services, manage ourresources in a responsible and creative manner,and hold contracted service providers to highstandards.

WE will work with participating employers toenhance their role in the administration of bene-fits for their employees through integrated tech-nology that allows them to access and processbenefit information directly.

Our Values . . .WE are customer-focused, recognizing eachclient individually.

WE acknowledge as our greatest asset ourknowledgeable, hardworking, dedicated and car-ing staff.

WE are financially responsible in the administra-tion, oversight, and delivery of our benefit pro-grams.

WE are committed to providing quality, timely,accurate, efficient, and cost effective services.

WE are committed to creating and developing aquality work environment using state-of-the-arttechnologies, and processes that foster continuous

improvement of our organization through team-work, motivation, and communication amongstaff.

Our Goals . . .Customer Service —

TO create and maintain a customer focusedwork environment that anticipates and meetsclient needs.

Staff —

TO have a full complement of staff that iswell trained, undergoes continual develop-ment, and is motivated to provide benefitservices effectively and efficiently in a cus-tomer friendly manner.

Technology —

TO have an integrated, easily maintained andmodified, information processing system thatsupports the efficient and effective delivery ofservices.

Planning —

TO have an effective planning system thatfacilitates improvement, anticipates changeand properly focuses resources on priorities.

Benefits Processing —

TO provide benefits to clients in a timely andefficient manner.

Advocacy —

TO help structure a well-funded system ofbenefits that meets the needs of publicemployees and employers.

Oversight and Compliance —

TO administer programs with clear and con-sistent policies and procedures and provideoversight to safeguard fund assets and ensurebenefit entitlement.

Our Mission . . .To provide quality benefits and services that meet the needsof our clients and others we are committed to serve,through our efficient and responsive workforce.

NEW JERSEY DIVISION OF

PENSIONS AND BENEFITSA DEPARTMENT OF THE STATE OF NEW JERSEY

58th

COMPREHENSIVEANNUAL FINANCIAL REPORT

For the Fiscal Year Ended June 30, 2013

Chris ChristieGovernor

Andrew P. Sidamon-Eristoff Florence J. SheppardState Treasurer Acting Director

STATE OF NEW JERSEY

DEPARTMENT OF THE TREASURY

DIVISION OF PENSIONS AND BENEFITSPO BOX 295

TRENTON, NJ 08625-0295

(609) 292-7524

2 New Jersey Division of Pensions and Benefits

Programs administered by the

NEW JERSEY DIVISION OF PENSIONS AND BENEFITSPERS Public Employees' Retirement System

TPAF Teachers' Pension and Annuity Fund

PFRS Police and Firemen's Retirement System

SPRS State Police Retirement System

JRS Judicial Retirement System

DCRP Defined Contribution Retirement Program

ABP Alternate Benefit Program

POPF Prison Officers' Pension Fund

CPFPF Consolidated Police and Firemen's Pension Fund

NJSEDCP NJ State Employees Deferred Compensation Plan

SACT Supplemental Annuity Collective Trust

ACTS Additional Contributions Tax-Sheltered Program

CPF Central Pension Fund

PAF Pension Adjustment Fund

UCTDSE Unemployment Compensation and Temporary Disability for State Employees

SHBP State Health Benefits Program

SEHBP School Employees’ Health Benefits Program

PDP Prescription Drug Plan

EDP Employee Dental Plans

Tax$ave NJ State Employees Tax Savings ProgramPremium Option Plan,

Unreimbursed Medical Flexible Spending Account, and Dependent Care Flexible Spending Account

Commuter Tax$ave State Employees Commuter Tax Savings Program

LTC State Employees Long Term Care Insurance Plan

INDEPENDENT AUDITOR

KPMG LLP51 John F. Kennedy ParkwayShort Hills, NJ 07078-2702

ACTUARIAL REPORTS

BUCK CONSULTANTS500 Plaza Drive

Secaucus, NJ 07096-1533

MILLIMAN1550 Liberty Ridge Drive

Suite 200Wayne, PA 19087-5572

INTRODUCTORY SECTION

Letter of Transmittal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

All in a Year’s Work (Accomplishments in 2013) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Organization — Board of Trustees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Significant Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Scope of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

FINANCIAL SECTION

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Independent Auditors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Management’s Discussion and Analysis (unaudited) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Basic Financial Statements

Statement of Fiduciary Net Position — Fiduciary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Combining Statement of Fiduciary Net Position — Fiduciary Funds — Pension Trust and State Health Benefit Program Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Statement of Changes in Fiduciary Net Position — Fiduciary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Combining Statement of Changes in Fiduciary Net Position — Fiduciary Funds — Pension Trust and State Health Benefit Program Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Notes to Financial Statements

(1) Description of the Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

(2) Summary of Significant Accounting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

(3) Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

(4) Securities Lending Collateral . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

(5) Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

(6) Vesting and Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

(7) Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

(8) Contingencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

Schedules

#1 Required Supplementary Information (Unaudited) — Schedule of Funding Progress . . . . . . . . 82

#2 Required Supplementary Information (Unaudited) — Scheduleof Employer Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87

#3 Schedule of Administrative Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

#4 Schedule of Investment Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

#5 Schedule of Expenses for Consultants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

#6 Schedule of Fiduciary Net Position — Fiduciary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

#7 Schedule of Changes in Fiduciary Net Position — Fiduciary Funds . . . . . . . . . . . . . . . . . . . . . . 93

#8 Combining Schedule of Balance Sheet Information — Fiduciary Funds— Agency Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

New Jersey Division of Pensions and Benefits 3

TABLE OF CONTENTS

#9 Schedule of Changes in Fiduciary Net Position Information — Fiduciary Funds —

Agency Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

#10 Combining Schedule of Fiduciary Net Position Information — State Health Benefit

Program Fund — State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96

#11 Combining Schedule of Changes in Fiduciary Net Position Information — State Health Benefit Program Fund — State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

#12 Combining Schedule of Fiduciary Net Position Information — State Health Benefit

Program Fund — Local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98

#13 Combining Schedule of Changes in Fiduciary Net Position Information — State Health Benefit Program Fund — Local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

#14 Combining Schedule of Fiduciary Net Position Information — State Health Benefit Program Fund — Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

#15 Combining Schedule of Changes in Fiduciary Net Position Information — State Health Benefit Program Fund — Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101

#16 Combining Schedule of Balance Sheet Information — Agency Fund —

Dental Expense Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102

#17 Combining Schedule of Changes in Fiduciary Net Position Information — Agency Fund —

Dental Expense Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

#18 Schedule of Changes in Assets and Liabilites Information — Agency Fund —

Alternate Benefit Program Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104


Pension Adjustment Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105


Dental Expense Program — Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106


Dental Expense Program — State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107


Dental Expense Program — Local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108

#23 Combining Schedule of Fiduciary Net Postion Information — Fiduciary Funds — Select Pension Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

#24 Combining Schedule of Changes in Fiduciary Net Position Information — Fiduciary Funds — Select Pension Trust Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110

#25 Common Pension Funds — Portfolio of Investments — Equities . . . . . . . . . . . . . . . . . . . . . . . . 111

#26 Common Pension Funds — Portfolio of Investments — Fixed Income . . . . . . . . . . . . . . . . . . . . 146

#27 Common Pension Funds — Portfolio of Investments — Alternative Investments andGlobal Diversified Credit Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182

#28 Common Pension Funds — Portfolio of Investments — Derivatives . . . . . . . . . . . . . . . . . . . . . . 187


TABLE OF CONTENTS

INVESTMENT SECTION

Reviews of Major Policy Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191

State Investment Council — Key Regulations Pertaining to Pension Fund Assets . . . . . . . . . . . . . . . . . . . . . 192

Rate of Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193

Pension Fund Asset Allocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194

Pension Fund Composite Asset Allocation History (Graph) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195

U.S. Equities Market — Portfolio Sector Weightings (Graph) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196

International Equities Markets — Portfolio Sector Weightings (Graph) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196

List of the Largest Assets Held . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197

Commission on Global Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199

Schedule of Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200

ACTUARIAL SECTION

Public Employees’ Retirement System (PERS)

Actuary’s Certification Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203

Summary of Actuarial Assumptions and Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206

Schedule of Retired Members and Beneficiaries Added to and Removed from Rolls . . . . . . . . . . . . . . . . 210

Schedule of Active Member Valuation Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211

Solvency Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212

Analysis of Past Financial Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213

Summary of Benefit and Contribution Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215

Teachers’ Pension and Annuity Fund of New Jersey (TPAF)





Solvency Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233

Analysis of Financial Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234

Summary of Principal Plan Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235

Police and Firemen’s Retirement System (PFRS)





Solvency Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248

Analysis of Past Financial Experience — State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249

Analysis of Past Financial Experience — Local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250



TABLE OF CONTENTS

State Police Retirement System (SPRS)





Solvency Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260



Judicial Retirement System (JRS)





Solvency Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 269



Consolidated Police and Firemen’s Pension Fund (CPFPF)





Solvency Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276



Prison Officers’ Pension Fund (POPF)





Solvency Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 282




TABLE OF CONTENTS

Supplemental Annuity Collective Trust (SACT)





Solvency Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289



STATISTICAL SECTION

Schedule of Retired Members By Type of Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 295

Schedule of Revenues By Source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296

Schedule of Expense By Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298

Schedule of Changes in Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300

Participating County and Municipal Employers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 302

Participating Education Employers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305

Participating Agencies and Authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309

Participating State Departments and Pension Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 311


TABLE OF CONTENTS


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INTRODUCTORY SECTION



LETTER OF TRANSMITTAL

February 2014

To the Honorable

Chris Christie, GovernorAndrew P. Sidamon-Eristoff, State Treasurer Members of the Legislature Members of the Boards of Trustees

On behalf of the Division of Pensions and Benefits, I am pleased to submit the58th Comprehensive Annual Financial Report (CAFR) of the New JerseyState-administered retirement systems and related benefit programs for thefiscal year ended June 30, 2013. The management of the Division of Pensionsand Benefits (the Division) is responsible for the accuracy of the data and thecompleteness and fairness of the presentation. To the best of my knowledgeand belief, the enclosed information is accurate in all material respects and isreported in a manner that fairly represents the financial position and results ofthe Division’s operations.

THE REPORTING ENTITY

The Division was established in 1955 as the Division of Pensions to provideall administration of the state pension funds except investments. The Divisionchanged its name to the Division of Pensions and Benefits in 1992 to moreaccurately reflect its roles and responsibilities beyond the realm of pensions.Currently, the Division administers one of the largest non-federal public bene-fits program in the nation, consisting of ten separate retirement systems, threesupplemental retirement savings programs, two health benefits programs foremployees, retirees, and family members, and several other employee bene-fits programs. Over 792,986 members enjoy the benefits of the various pen-sion systems administered by the Division, and over 882,000 lives are coveredin the State Health Benefits Program (SHBP) and the School Employees’Health Benefits Program (SEHBP). In addition to the State, 1,793 local publicemployers participate in the retirement systems, and 1,126 local employersparticipate in the SHBP and SEHBP.

CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING

The Government Finance Officers Association of the United States andCanada (GFOA) recognized the Division’s CAFR of last year for Excellence inFinancial Reporting. A copy of the Certificate of Achievement is included inthis CAFR.

CHRIS CHRISTIEGovernor

ANDREW P.SIDAMON-ERISTOFF

State Treasurer

FLORENCE J.SHEPPARD

Acting Director, Division of Pensions

and Benefits

State of New JerseyDEPARTMENT OF THE TREASURY


(609) 292-7524 TDD (609) 292-7718www.state.nj.us/treasury/pensions

Mailing Address:PO Box 295

Trenton, NJ 08625-0295Location:

50 West State StreetTrenton, New Jersey



MAJOR INITIATIVES

Pension and health benefit reform legislation enacted in the first term continued to be a driving force for the Divisionin 2013.

Pension reforms enacted pursuant to Chapter 78, P.L. 2011 included provisions creating special Pension PlanDesign Committees that will have the discretionary authority to modify certain plan design features. A total of sixPension Plan Design Committees can be formed: two each for the PERS and PFRS, representing the State andlocal components of these plans, and one committee each for the TPAF and the SPRS. The State HouseCommission will assume the design committee responsibilities for the JRS. Members of the committees cannot beappointed to the Design Committees until the pension plan, or part of the plan, attains the target funded ratio (TFR).Three plans, or parts of the plans, attained the 75 percent TFR in fiscal year 2012, as reflected in the revised July1, 2010 actuarial reports of the pension plans. These plans were: PERS-Local, PFRS-Local and the SPRS. As aresult, these three formed and held their first meetings but took no action based on 30 year projections providedindicating that implementation of any benefit improvements including reactivation of the COLA is not possible at thistime or the foreseeable future because any changes would result in the diminishment of the funding ratio below theTFR.

Pursuant to a November amendment to Article VI, Section VI, Paragraph 6 of the New Jersey Constitution, employeepension and health benefit contribution rates for members of the Judicial Retirement System (JRS) increased as ofthe first State Biweekly Pay Period of 2013. The increase in the JRS pension contributions was calculated as follow:

• For JRS members enrolled into the retirement system on or after January 1, 1996, the pension contribution rateincreased to 5.56% of all compensation.

• For JRS members enrolled into the retirement system before January 1, 1996, the pension contribution wascalculated using one rate for the compensation of the member’s current position as of January 18, 1982, anda separate rate for the balance of the member’s compensation in excess of the January 18, 1982, compensa-tion. The employee contribution rates for this group were 2.56% for the compensation as of January 18, 1982,and 5.56% for any compensation exceeding the January 18, 1982, compensation.

Chapter 78 calls for JRS employee pension contribution rates to increase by 1.28% a year over 7 years until a totaladditional pension contribution rate of 9% is reached as of July 2017 — making the full contribution rate 12% forJRS members enrolled into the retirement system on or after January 1, 1996. The 2.56% contribution rate for com-pensation as of January 18, 1982 and 5.56% contribution rate for any compensation exceeding the January 18,1982 compensation represents the second year of phased-in rate increases under the provisions of Chapter 1. Thethird year contribution rate increase of an additional 1.28% will begin with the first payroll of July 2013.

In other developments, the Division, in cooperation with the Division of Purchase and Property, initiated a MedicalPlan RFP with a contract effective date of January 1, 2013. In conjunction with the RFP, the Joint Plan DesignCommittees for the SHBP and the SEHBP established two additional PPO plans and two additional HMO plans foreach benefit administrator plus four high deductible health plans. Over 7,000 members elected one of the newplans and of that number, 250 elected the high deductible plans.

The Division continued its efforts to provide additional automated and self-service processing opportunities to boththe members and employers of the State-administered retirement systems. Notably, effective October 1, 2012, allnew retirement applications were required to be filed through our Member Benefits Online System (MBOS). AnOnline Guide to Retirement was launched on our Web site on January 18, 2013 to help prospective applicantsthrough this process.

The existing hardware and software for the Interactive Voice Response System (IVR) was replaced and the newsystem shares hardware and software resources with the Department of Labor. The IVR system provides mem-bers and employers with the ability to obtain pension and health plan information, and process a loan and othertransactions over the telephone. As result of this major initiative, in early 2013 the IVR became the point of entryfor members calling the Division. From there a number of self-service options are available, or, if the memberchooses, they will be transferred to the call center to speak with a counselor.



The WEB Enhancement Project involved two components; 1) an upgrade to the Division’s static web pages, and 2) anupgrade to the inquiry and transactional web pages of Employer Pension Information Connection (EPIC) and MemberBenefits Online System (MBOS). This project has resulted in the enhancement of 26 sub-application components.

FINANCIAL INFORMATION

The Financial reports of the Fiduciary Funds of the Division have been prepared in conformity with generallyaccepted accounting principles as applied to governmental units. The Governmental Accounting StandardsBoard (GASB) is the accepted standard-setting body for governmental accounting and financial reporting. Thespecific accounting policies can be found in the Notes to the Financial Statements found in the Financial Section.

The Fiduciary Funds include twelve separate pension trust funds, three health benefit program funds, and threeagency funds. A summary of the condition of the funds administered by the Division of Pensions and Benefits islocated in the “Management Discussion and Analysis” that begins on page 37 of the CAFR. Management isresponsible for establishing and maintaining the accounting systems complete with internal controls so that thedata presented is complete and fairly presents the financial position of the Division as of June 30, 2013. KPMGLLP independently audited the funds.

INVESTMENTS

The Division of Investment has the responsibility for investing the assets of the programs administered by theDivision. This is done under the jurisdiction of the State Investment Council. Investments are guided by the “pru-dent person rule”. During FY 2013 investment returns on pension funds were +11.78 percent. When combined withthe returns for previous years, the annualized returns over the past three, five and ten-year periods were +10.59percent, +5.32 percent, and +7.26 percent, respectively.

FUNDING

A fully funded system that has assets sufficient to meet the retirement benefit schedules is one that instills confi-dence and trust. While employer funding obligations have been difficult to meet over the past several years due toconflicting budgetary priorities, the enactment of Chapter 1, P.L. 2010 and Chapter 78, P.L. 2011 have charted along term path which is projected to result in improved funded levels over a thirty year period.

PROFESSIONAL SERVICES

The Division contracts with several professional organizations for advice and assistance in administering the pro-grams for which it is responsible. The list of these organizations is found on page 91 of the CAFR. The Office of theAttorney General provides all legal services required by the Division of Pensions and Benefits and the retirementsystem Boards of Trustees.

ACKNOWLEDGEMENTS

The preparation of the CAFR required the combined efforts of many employees from different operational unitswithin the Division. The CAFR is intended to provide extensive and reliable information to facilitate informed deci-sions, determine compliance with legal requirements, and determine responsible stewardship for the assets con-tributed by the systems’ members, participating employers, and the taxpayers of the State. I would like to take thisopportunity to express my gratitude to the Governor, the Legislature, the Treasurer, the Boards of Trustees, the indi-viduals providing professional services, participating employer benefits administrators, and to the outstandingemployees of the Division for all their efforts and support. Such concerted effort has resulted in making NewJersey’s public benefits system one of the largest and best administered in the nation.

Respectfully submitted,

Florence J. Sheppard, Acting Director


ALL IN A YEAR’S WORK…• There are 415,691 ACTIVE MEMBERS in the combined retirement systems.

• There are 1,793 PARTICIPATING EMPLOYERS in the combined retirementsystems; 13 NEW EMPLOYERS began participating this year.

• There are 422,793 INDIVIDUAL RETIREMENT SYSTEM MEMBERACCOUNTS being maintained; 11,402 MEMBER ACCOUNTS were auditedinternally.

• A total of 293,337 RETIREES AND BENEFICIARIES received monthly pen-sions totaling in excess of $8.8 BILLION annually.

• Over 37,137 BENEFICIARY CLAIMS were processed. Premiums in excessof $234 MILLION were paid to the insurance carrier on behalf of active andretired members.

• Over 930,000 TELEPHONE CALLS calls were handled by the InteractiveVoice Response System (IVR). Phone representatives handled over 315,000calls.

• 15,992 PERSONAL INTERVIEWS were conducted by pension counselors.

• 160 SEMINARS AND WEBINARS were conducted for over 3,420 MEMBERS.

• 11,221 SERVICE PURCHASE REQUESTS were processed.

• 29,107 NEW ENROLLMENTS OR TRANSFERS were processed in ourretirement systems.

• There were 9,230 WITHDRAWALS from the retirement systems.

• 15,208 MEMBERS RETIRED.

• Over 107,525 PENSION LOANS totaling $549,711,702 were processed.

• State and local membership in the State Health Benefits Program andSchool Employees’ Health Benefits Program was 408,575 MEMBERS with881,626 LIVES COVERED.

• A total of over $5.5 BILLION IN PREMIUMS was collected from State andlocal State Health Benefits Program employers, School Employees’ HealthBenefits Program employers, and combined employees. 1,126 LOCALEMPLOYERS elected to participate in the SHBP or SEHBP this year.


ORGANIZATION

EXECUTIVE MANAGEMENT TEAM

Seated, Front Row (left to right): Susanne Culliton, Assistant Director, Professional Services and Board ofTrustees; Florence J. Sheppard, Acting Director; John D. Megariotis, Deputy Director, FinanceBack Row (left to right): Frank Corliss, Assistant Director, Management Information Systems;

Janice F. Nelson, Assistant Director, Client Services and Benefit Operations;David Pointer, Assistant Director, Health Benefits and Publications

JOHN D.MEGARIOTIS

DEPUTY DIRECTOR

FINANCE

SUSANNE CULLITON

ASSISTANTDIRECTOR

PROFESSIONALSERVICES & BOARD

OF TRUSTEES

FRANK CORLISS

ASSISTANTDIRECTOR

MANAGEMENTINFORMATION

SYSTEMS

DAVID POINTER

ASSISTANTDIRECTOR

HEALTH BENEFITS AND PUBLICATIONS

JANICE F. NELSON

ASSISTANTDIRECTOR

CLIENT SERVICES& BENEFIT

OPERATIONS

FLORENCE J. SHEPPARD

ACTING DIRECTOR



ORGANIZATION

DIRECTOR

The Director is responsible for the coordination of thefunctions of the Division, the development of the Divisionbudget, and communication with other branches of Stategovernment, local government, and the public. TheDirector serves as the Secretary to the SupplementalAnnuity Collective Trust Council, the State HealthBenefits Commission, and the State House Commissionin its capacity as the Board of Trustees for the JudicialRetirement System. The Director is also responsible forlegal and legislative matters and Board of Trusteesadministration. In addition, the Treasurer has delegatedthe responsibility of maintaining the Federal-StateAgreement for Social Security to the Director of theDivision of Pensions and Benefits.

The Division of Pensions and Benefits falls under thejurisdiction of the New Jersey Department of theTreasury. The Director of the Division of Pensions andBenefits reports directly to the State Treasurer.

OFFICE OF OPERATIONS

The work of this office, overseen by a Deputy Director,is divided among three bureaus: Enrollment andPurchase; Claims; and Retirement.

The Enrollment and Purchase Bureau processes allenrollments, transfers, and purchases of service creditfor all of the State retirement systems. The ClaimsBureau processes all death claims, withdrawals, andloan requests. In addition, this bureau oversees benefi-ciary designations filed by active and retired membersand issues group life insurance policies, riders, andspecial endorsements. The Retirement Bureau pre-pares retirement estimates and processes retirementapplications for all of the State retirement systems.

OFFICE OF HEALTH BENEFITS

This office, overseen by a Deputy Director, consists oftwo elements: the Health Benefits Bureau and theOffice of Policy Planning. The Health Benefits Bureau

CHIEFS AND MANAGERS

Seated, First Row (left to right): Mary Ann Ryan – Client Services; Joseph Zisa – Defined Benefit andContribution Plans; Wendy Jamison – Boards of Trustees;

Second Row (left to right): Peter Mullings - Administrative Services; Timothy McMullen – Budget and Compliance;Michael Weik – Operations; Francis Peterson — Financial Reporting, Payments, and Collections;

Absent: Mark Schwedes - Enrollments and Purchases


ORGANIZATION

processes all enrollments, changes, and terminationsfor active and retired members of the State HealthBenefits Program. In addition, this bureau is responsi-ble for the administration of benefits under the federalCOBRA law, and enrollments, changes, and termina-tions for members of the Prescription Drug Plan andState Employee Dental Program. The Office of Policyand Planning analyzes and makes recommendationsconcerning current and proposed health benefits pro-grams to provide the highest quality programs at theleast possible cost. It manages contract renewals andrequests for proposals. Policy and Planning is responsi-ble for health benefit program review and development.This office also provides administrative support to theState Health Benefits Commission.

OFFICE OF FINANCIAL SERVICES

The work of this office, overseen by a Deputy Director,is divided among three bureaus: Financial Reporting,Payment, and Collections; Budget and Compliance;and Defined Benefit and Contribution Plans Reporting.

The Office of Financial Services is charged with thecustodianship of pension and health benefits assets.These assets are in excess of $81.9 billion and includeover 792,986 individual member accounts. The office isresponsible for the accounting and budget functionsnecessary for the successful operations of the variouspension funds, health benefits and agency funds, aswell as the administration of the Pension AdjustmentProgram, the Supplemental Annuity Collective Trust,and Deferred Compensation Plan.

OFFICE OF CLIENT SERVICES

This office, overseen by a Deputy Director, consists ofthree units: Telecommunications; Counseling, Education,and Support; and Publications. Client Services dissemi-nates pension, life insurance, and health benefits infor-mation to employees, retirees, and employers coveredby the various New Jersey State-administered retirementsystems and benefit programs.

The Telecommunications Unit counsels employees,retirees, and employers via the telephone by providinginformation about pension, life insurance, health bene-fits, and general procedures. The Counseling,Education, and Support Unit responds to writtenrequests for information, conducts personal interviewswith employees and retirees who visit the Division ofPensions and Benefits, and provides seminars, employ-er group meetings, employer instructions, and variouspresentations concerning pension, life insurance, and

health benefits to employees, employers, and retirees.This unit is also responsible for providing receptionistservices for the entire Division. The Publications Unitexercises overall responsibility for creating, editing,updating, and printing of written materials disseminatedby the Division, including manuals, reports, forms, ben-efits statements, and booklets. This unit also managesthe Division’s Internet site.

OFFICE OF MANAGEMENT INFORMATION AND SUPPORT SERVICES

The work of this office, overseen by an AssistantDirector, is responsible for the development and main-tenance of all processing and management informationsystems for the Division. This office also has theresponsibility for the training, usage, and maintenanceof all automated office and telephone equipment.

This office consists of five sections: Image Processingand Records Management; Data Entry; ComputerScheduling and Production Control; SystemsDevelopment; and Support Services.

The Support Services section has the responsibility forthe building and equipment, mail room, warehouseoperations, and forms inventory.

OFFICE OF PROFESSIONAL SERVICES

The Office of Professional Services is located within theDirector’s Office and operates under the direction of anAssistant Director. It is responsible for providing a struc-tured and consistent planning function for the Division,analyzing proposed legislation for its fiscal and policyimpacts, maintaining the regulatory documentation forDivision programs, managing the development of con-tracts with external service providers, and conductingresearch in support of Division activities.

OFFICE OF BOARD OF TRUSTEESADMINISTRATION

The Office of Board of Trustees Administration, underthe direction of an Assistant Director, provides adminis-trative services for the various defined benefit plans’Boards and Commissions.

The Boards and Commissions have the generalresponsibility for the proper operation of their respec-tive employee benefits program. The Boards adoptrules in compliance with statute and advice of theAttorney General. The Boards may grant hearing in dis-putes concerning issues of law or fact. Hearings areheld by the Office of Administrative Law.


ORGANIZATION

The Boards maintain a record of all proceedings andhold regular meetings and special meetings when nec-essary.

ACTUARIAL ADVISORS

The actuaries establish actuarial tables for the opera-tion of the retirement systems, determine the annualappropriation required of participating employers andconduct annual examinations of the systems’ actuarialposition.

Contracts for actuarial services for the retirement sys-tems are awarded at specified intervals through theregulations governing the procurement of goods andservices for the State of New Jersey and its constituentdepartments and agencies.

LEGAL ADVISOR

The State Attorney General is the legal advisor for allpension funds and other employee benefit programs.

MEDICAL ADVISORS

All pension funds are served by a medical board con-sisting of three physicians who review claims for disabil-ity as submitted by the Disability Review Section of theRetirement Bureau for the Division of Pensions andBenefits.


ORGANIZATION — BOARDS OF TRUSTEES

PUBLIC EMPLOYEES’ RETIREMENT SYSTEM

Seated: Suzanna Buriani-DeSantis(l to r) Thomas Bruno

Leon Flanagan, ChairpersonSusanne Culliton, State Treasurer’s Representative

Standing: Ronald Winthers(l to r) Jackie Bussanich, Administrative Assistant

Benjamin (Max) HurstWilliam O’BrienKellie Kiefer-Pushko, Deputy Attorney GeneralEdward (Ned) Thomson, IIIHank Schwedes, Board Secretary

TEACHERS’ PENSION AND ANNUITY FUND

Seated: Martha Liebman(l to r) James Joyner, Chairperson

Standing: H. O’Neill Williams (l to r) Erland Nordstrom

Susanne Culliton, State Treasurer’s RepresentativePaul OrihelMary Ellen Rathbun, Board SecretaryRobert Kelly, Deputy Attorney GeneralJackie Bussanich, Administrative Assistant

POLICE AND FIREMEN’S RETIREMENT SYSTEM

Seated: Vincent Foti(l to r) Susanne Culliton, State Treasurer’s Representative

Wayne Hall, ChairpersonWendy Jamison, Board Secretary

Standing: Marty Barrett(l to r) Tim Colacci

Lisa Pointer, Administrative AssistantFrank LeakeKellie Kiefer-Pushko, Deputy Attorney GeneralJohn SierchioMichael Postorino

Absent: Laurel BrennanRichard Loccke


ORGANIZATION — BOARDS OF TRUSTEES

SUPPLEMENTAL ANNUITY COLLECTIVE TRUST COUNCILJohn Megariotis, Chairperson, Representing Andrew P. Sidamon-Eristoff, Treasurer, State of New Jersey

Leslie Notor, Representing Charlene Holzbaur, Director, Office of Management and BudgetFelix Schirripa, Representing Kenneth E. Kobylowski, Commissioner, Department of Banking and Insurance

DEFERRED COMPENSATION BOARDDavid Ridolfino, Chairperson, Representing Andrew P. Sidamon-Eristoff, Treasurer, State of New Jersey

Leslie Notor, Representing Charlene Holzbaur, Director, Office of Management and BudgetFelix Schirripa, Representing Kenneth E. Kobylowski, Commissioner, Department of Banking and Insurance

DEFINED CONTRIBUTION RETIREMENT PROGRAM BOARDJoseph Zisa, Chairperson, Representing Florence J. Sheppard, Acting Director, Division of Pensions and

BenefitsSonia Rivera-Perez, Representing Charlene Holzbaur, Director, Office of Management and Budget

Felix Schirripa, Representing Kenneth E. Kobylowski, Commissioner, Department of Banking and InsuranceTimothy Walsh, Director, Division of Investment

STATE HEALTH BENEFITS COMMISSIONAndrew P. Sidamon-Eristoff, State Treasurer, Chairperson

Kenneth E. Kobylowski, Commissioner, Department of Banking and InsuranceRobert Czech, Chair, Civil Service Commission

Florence J. Sheppard, SecretaryPatrick Nowlan, State Employees’ Representative of the AFL-CIODudley Burdge, Local Employees’ Representative of the AFL-CIO

SCHOOL EMPLOYEES’ HEALTH BENEFITS COMMISSIONDavid Earling, Chairperson

Andrew P. Sidamon-Eristoff, Treasurer, State of New JerseyKenneth E. Kobylowski, Acting Commissioner, Department of Banking and Insurance

Cynthia Jahn, Representing the NJ School Boards AssociationFlorence J. Sheppard, Secretary

Kevin Kelleher, Representing the NJEAWendell Steinhauer, Representing the NJEA

Joseph Del Grosso, Representing the AFL-CIO

STATE POLICE RETIREMENT SYSTEM

Seated: Major Patrick Callahan(l to r) Wendy Jamison, Board Secretary

Major Brian McPherson, Chairperson

Standing: Lisa Pointer, Administrative Assistant(l to r) Susanne Culliton, State Treasurer’s Representative

Diane Weeden, Deputy Attorney General

Absent: Jack Sayers


SIGNIFICANT LEGISLATION

Chapter 50, P.L. 2013

Effective Date: This law takes effect on the 90th dayafter enactment (August 4, 2013).

Description: This law requires, in certain circum-stances, health insurers (health, hospital and medicalservice corporations, commercial individual and grouphealth insurers; health maintenance organizations,health benefits plans issued pursuant to the NewJersey Individual Health Coverage and Small EmployerHealth Benefits Programs, the State Health BenefitsProgram, and the School Employees’ Health BenefitsProgram) that provide coverage for prescription eyedrops, to provide health benefits coverage for expens-es incurred for a refill of prescription eye drops in accor-dance with Guidance for Early Refill Edits on TopicalOphthalmic Products provided to Medicare Part D plansponsors by the Centers for Medicare and MedicaidServices.

The requirement to provide this coverage is conditionedon two factors: (1) the prescribing health care practi-tioner indicates on the original prescription that addi-tional quantities of the prescription eye drops areneeded; and (2) the refill requested does not exceedthe number of additional quantities indicated on theoriginal prescription by the prescribing health carepractitioner.

The Centers for Medicaid and Medicare Servicesissued guidance on topical ophthalmics to prevent theunintended interruption of drug therapy in situations inwhich patients legitimately need earlier refills of pre-scription eye drops. While the guidance acknowledgesthat health insurers monitor appropriate refill periods aspart of utilization management, the guidance also rec-ognizes that the self-administration of prescription eyedrops may involve some reasonable amount of wasteand that earlier refills may be appropriate in some cir-cumstances.


SCOPE OF OPERATIONS

PUBLIC EMPLOYEES RETIREMENT SYSTEM(PERS)

This system was established by Chapter 84, P.L. 1954,after the repeal of the law creating the former StateEmployees’ Retirement System. The retirement bene-fits of this system are coordinated, but not integratedwith, Social Security. This system is maintained on anactuarial reserve basis. Under the terms of Chapter 71,P.L. 1966, most public employees in New Jersey notrequired to become members of another contributoryretirement program are required to enroll.

Statutes can be found in the New Jersey StatutesAnnotated, Title 43, Chapter 15A. Rules governing theoperation and administration of the fund may be foundin Title 17, Chapter 2 of the New Jersey AdministrativeCode.

TEACHERS’ PENSION AND ANNUITY FUND (TPAF)

This fund was reorganized by Chapter 37, P.L. 1955.The retirement benefits of this system and coordinated,but not integrated with, Social Security. This fund is maintained on an actuarial reserve basis.Membership is mandatory for substantially all teachersor members of the professional staff certified by theState Board of Examiners, and employees of theDepartment of Education who have titles that areunclassified, professional, and certified.

Statutes can be found in the New Jersey StatutesAnnotated, Title 18A, Chapter 66. Rules governing theoperation and administration of the system may befound in Title 17, Chapter 3 of the New JerseyAdministrative Code.

POLICE AND FIREMEN’S RETIREMENT SYSTEM(PFRS)

This system was established by Chapter 255, P.L.1944. All police officers and firefighters, appointed afterJune 1944, in municipalities where local police and firepension funds existed or where this system was adopt-ed by referendum or resolution are required to becomemembers of this system. Certain State and countyemployees are also covered. Employer obligations arepaid by the local employers and the State. This systemis maintained on an actuarial reserve basis.

Statutes can be found in the New Jersey StatutesAnnotated, Title 43, Chapter 16A. Rules governing theoperation and administration of the system may befound in Title 17, Chapter 4 of the New JerseyAdministrative Code.

STATE POLICE RETIREMENT SYSTEM (SPRS)

This system was created by Chapter 89, P.L. 1965 as asuccessor to the State Police Retirement andBenevolent Fund. All uniformed officers and troopers ofthe Division of State Police in the New JerseyDepartment of Law and Public Safety are required toenroll. This system is maintained on an actuarialreserve basis.


JUDICIAL RETIREMENT SYSTEM (JRS)

This system was established by Chapter 140, P.L. 1973after the repeal of the laws providing pension benefitsto members of the State judiciary and their eligible sur-vivors. All members of the State judiciary are requiredto enroll. The system is maintained on an actuarialreserve basis.


DEFINED CONTRIBUTION RETIREMENT PROGRAM (DCRP)

This program was established July 1, 2007 under theprovisions of Chapter 92, P.L. 2007 and Chapter 103,P.L. 2007, and expanded under the provisions ofChapter 89, P.L. 2008 and Chapter 1, P.L. 2010. Theprogram is a tax-qualified defined contribution moneypurchase pension plan under Internal Revenue Code(IRC) §401(a) et seq., and is a “governmental plan”within the meaning of IRC §414(d). Eligible membersare provided with a tax-sheltered, defined contributionretirement benefit, along with life insurance and disabil-ity coverage. Individuals eligible for membershipinclude State or Local Officials who are elected orappointed on or after July 1, 2007; employees enrolledin the PERS or TPAF on or after July 1, 2007 who earnsalary in excess of established “maximum compensa-tion” limits, employees enrolled in the PFRS or SPRSafter May 21, 2010 who earn salary in excess of estab-lished “maximum compensation” limits; and employeesotherwise eligible to enroll in the PERS or TPAF on orafter November 2, 2008, who do not earn the minimum


SCOPE OF OPERATIONS

annual salary required for PERS or TPAF Tier 3 enroll-ment or do not work the minimum hours per weekrequired for PERS or TPAF Tier 4 enrollment.

Statutes can be found in the New Jersey StatutesAnnotated, Title 43, Chapter 15C, Article 1 et seq.

ALTERNATIVE BENEFIT PROGRAM (ABP)

This program was established by several pieces of leg-islation between 1965 and 1968 for full-time facultymembers of public institutions of higher education. Itwas later expanded to include certain administrativeand professional titles.

Chapter 385, P.L. 1993 increased the number of invest-ment carriers to six. The investment carriers underwrit-ing annuities are as follows: VALIC; AXA Financial(Equitable); The Hartford; ING Life Insurance andAnnuity Co.; MetLife (formerly Travelers/CitiStreet); andthe Teachers Insurance and AnnuityAssociation/College Retirement Equitites Fund(TIAA/CREF). The ABP is a “defined contribution” planas distinguished from “defined benefits” payable by theother State retirement systems. Immediate vesting afterthe first year of participation offers the mobility of pen-sion credit among the private and public institutions ofhigher education in the United States and Canada.Group life insurance and long-term disability insuranceare underwritten by the Prudential Insurance Companyof America, Inc.

Statutes can be found in the New Jersey StatutesAnnotated, Title 18A, Chapter 66. Rules governing theoperation and administration of this program may befound in Title 17, Chapter 7 of the New JerseyAdministrative Code.

PRISON OFFICERS’ PENSION FUND (POPF)

This fund was established under Chapter 220, P.L.1941. It was closed to new employees as of January1960. New employees are enrolled in the Police andFiremen’s Retirement System. This system is not main-tained on an actuarial reserve basis.

Statutes can be found in the New Jersey StatutesAnnotated, Title 43, Chapter 7.

CONSOLIDATED POLICE AND FIREMEN’S PENSION FUND (CPFPF)

This fund was established by Chapter 358, P.L. 1952, toplace 212 local police and fire pension funds on anactuarial reserve basis. The membership consists ofpolice and firefighters appointed prior to July 1, 1944.

The liabilities of these local funds were shared: two-thirds by the participating municipalities and one-thirdby the State.

Statutes can be found in the New Jersey StatutesAnnotated, Title 43, Chapter 16. Rules governing theoperation and administration of this fund may be foundin Title 17, Chapter 6 of the New Jersey AdministrativeCode.

NEW JERSEY STATE EMPLOYEES DEFERRED COMPENSATION PLAN (NJSEDCP)

This plan was established by Chapter 39, P.L. 1978 andis available to any State employee who is a member ofa State-administered retirement system. This plan is avoluntary investment program that provides retirementincome separate from and in addition to the basic pen-sion benefit.

Statutes can be found in the New Jersey StatutesAnnotated, Title 52, Chapter 18A.

Prudential Retirement was selected as the NJSEDCP'sthird-party administrator on August 26, 2005. TheDivision of Pensions and Benefits maintains its admin-istrative oversight functions.

SUPPLEMENTAL ANNUITY COLLECTIVE TRUST(SACT)

This trust was established by Chapter 123, P.L. 1963.This program includes active members of severalState-administered retirement systems. Members makevoluntary additional contributions through their pensionfunds to purchase variable retirement annuities in orderto supplement the benefits provided by their basic sys-tem. Some employers agree to purchase tax-shelteredannuities for the same purpose for certain eligibleemployees.

Statutes can be found in the New Jersey StatutesAnnotated, Title 52, Chapter 18A. Rules governing theoperation and administration of the trust may be foundin Title 17, Chapter 8 of the New Jersey AdministrativeCode.

ADDITIONAL CONTRIBUTIONS TAX-SHELTERED PROGRAM (ACTS)

This program was established in 1996. ACTS is a tax-sheltered, supplemental, retirement program pursuantto Section 403(b) of the federal Internal Revenue Codeoffered to employees of institutions of higher education,the Commission of Higher Education, the Departmentof Education, and the Office of Student Assistance. The


SCOPE OF OPERATIONS

eligible employees are able to obtain tax-deferredannuities with a variety of investment carriers through asalary reduction agreement. The annuities are availablefrom the same investment carriers who service theAlternate Benefit Program.

Statutes can be found in the New Jersey StatutesAnnotated, Title 52, Chapter 18A, Section 113.

CENTRAL PENSION FUND (CPF)

This fund consists of the administration of a series ofnoncontributory pension acts. No reserves are estab-lished for the payment of retirement benefits. Thesebenefits are administered by the Division in accordancewith the governing statute and the rules and regulationsof the State House Commission.

PENSION ADJUSTMENT FUND (PAF)

This fund was established pursuant to Chapter 143,P.L. 1958 and covers all eligible pensions of State-administered retirement systems. It was altered byChapter 169, P.L. 1969, which provided a cost-of-livingadjustment and by Chapter 139, P.L. 1971 whichextended its provisions to eligible survivors.

Statutes can be found in the New Jersey StatutesAnnotated, Title 52, Chapter 18A. Rules governing theoperation and administration of the fund may be foundin Title 17, Chapter 1 of the New Jersey AdministrativeCode.

UNEMPLOYMENT COMPENSATION AND TEMPORARY DISABILITY INSURANCE FOR STATE EMPLOYEES (UC/TDI)

The Division of Pensions and Benefits coordinates thework related to the payment of the charges involvingunemployment compensation and temporary disabilityinsurance benefits for State employees eligible for cov-erage under federal law. It is responsible for contractingwith a service agency to review all questionable claimsfor unemployment compensation.

STATE HEALTH BENEFITS PROGRAM (SHBP)

The program provides medical coverage to employees,retirees, and their dependents. Chapter 125, P.L. 1964extended the program to include employees of localgovernment. The program includes a preferred providerorganization (NJ DIRECT) and two HMO plans (AetnaHMO and CIGNA HealthCare). A small group of Stateemployees are covered under legacy plans — theindemnity type plan (Traditional Plan) and a point-of-service plan (NJ PLUS).

Statutes can be found in the New Jersey StatutesAnnotated, Title 52, Chapter 14, Article 17.25 et seq.Rules governing the operation and administration of theprogram can be found in Title 17, Chapter 9 of the NewJersey Administrative Code.

SCHOOL EMPLOYEES’HEALTH BENEFITS PROGRAM (SEHBP)

The program provides medical coverage to local educa-tion employees, retirees, and their dependents. Chapter103, P.L. 2007 established the program which includesa preferred provider organization (NJ DIRECT) and twoHMO plans (Aetna HMO and CIGNA HealthCare).

Statutes can be found in the New Jersey StatutesAnnotated, Title 52, Chapter 14, Article 17.46 et seq.Rules governing the operation and administration of theprogram can be found in Title 17, Chapter 9 of the NewJersey Administrative Code.


SCOPE OF OPERATIONS

PRESCRIPTION DRUG PLAN (PDP)

This plan was initiated by the State effective December1, 1974. The passage of Chapter 41, P.L. 1976 extend-ed coverage to all eligible State employees. The StateHealth Benefits Commission offered the plan to localemployers on July 1, 1993. Employees and their eligibledependents are covered by the plan in the same man-ner as the State Health Benefits Program. The Divisionof Pensions and Benefits became responsible for planadministration in November 1976.

Statutes can be found in the New Jersey StatutesAnnotated, Title 52, Chapter 14, Section 17.29(F).Rules governing the operation and administration of theprogram can be found in Title 17, Chapter 9, of the NewJersey Administrative Code.

EMPLOYEE DENTAL PLANS (EDP)

This program was initially established February 1, 1978and further expanded in June 1984. Eligible State andcertain local employees may enroll for themselves andtheir eligible dependents by paying the premium calcu-lated to meet half the cost of the plan. Plans offeredinclude the Dental Expense Plan, a traditional indemni-ty plan, and a selection of Dental Plan Organizations.

Statutes can be found in the New Jersey StatutesAnnotated, Title 52, Chapter 14, Section 17.29(F).Rules governing the operation and administration of theprogram may be found in Title 17, Chapter 9, of theNew Jersey Administrative Code.

TAX$AVE

The State Employees Tax Savings Program (Tax$ave)was initially established for State Employees in July1996 and authorized under Section 125 of the InternalRevenue Code. The benefit consists of three compo-nents: the Premium Option Plan that allows employeesto use pre-tax dollars deducted from their pay for healthor dental benefit premiums they may be required to payfor coverage; the Flexible Spending Account forUnreimbursed Medical Expenses that allows employ-ees to use up to $2,500 pre-tax dollars annually deduct-

ed from their pay for medical expenses not reimbursedby their medical or dental insurance; and theDependent Care Spending Account that allows employ-ees to use up to $5,000 pre-tax dollars annually deduct-ed from their pay for dependent care expenses requiredto permit the employee and spouse to work.

Statutes can be found in the New Jersey StatutesAnnotated, Title 52, Chapter 14, Article 15.1a. Rulesgoverning the Tax$ave can be found in Title 17, Chapter1, Subchapter 13 of the New Jersey AdministrativeCode.

COMMUTER TAX$AVE

This program, authorized by Chapter 162, P.L. 2001and available under Section 132(f) of the federalInternal Revenue Code, allows eligible State employ-ees to use before-tax dollars to pay for qualified com-muter expenses. Under the program, eligibleemployees may execute salary reduction agreementsto have up to $230 per month ($2,760 per year) deduct-ed from salary to pay for mass transit commutationcosts and $230 per month ($2,760 per year) to pay forparking at work or at park and ride sites. The programwas implemented in February 2004.

Statutes can be found in the New Jersey StatutesAnnotated, Title 52, Chapter 14, Article 17.33. Rulesgoverning Commuter Tax$ave can be found in Title 17,Chapter 1, Subchapter 14 of the New JerseyAdministrative Code.

STATE EMPLOYEES LONG TERM CARE INSURANCE PLAN

This plan is a participant-pay-all benefit available toState employees, retirees, and family members. ThePrudential Insurance Company administers the insur-ance plan under contract with the State.The initial offer-ing of the benefit was effective July 1, 2003.

Statutes can be found in the New Jersey StatutesAnnotated, Title 52, Chapter14, Article 15.9a and Title34, Chapter 11, Article 4.4b(10).


MEMBERSHIP

ACTIVE MEMBERSHIP RETIREMENT SYSTEM 2012 2013

Public Employees’ Retirement System 285,710* 279,145*

Teachers’ Pension & Annuity Fund 152,158* 153,458*

Police & Firemen’s Retirement System 41,518* 41,346*

State Police Retirement System 2,776* 2,513*

Judicial Retirement System 404 417

Alternate Benefit Program 22,225 23,165

Prison Officers’ Pension Fund 0 0

Consolidated Police & Firemen’s Pension Fund 0 0

Central Pension Fund NA NA

Total 504,791 500,044

*Both the 2012 and 2013 figures represent the total number of Active and Inactiveaccounts.The 2013 Inactive (noncontributing) accounts are as follows: PERS Inactive — 49,174,TPAF Inactive — 13,426, PFRS Inactive — 2,030, SPRS Inactive — 14.

RETIRED MEMBERSHIP RETIREMENT SYSTEM 2012 2013

Public Employees’ Retirement System 152,147 156,099

Teachers’ Pension & Annuity Fund 89,276 91,701

Police & Firemen’s Retirement System 39,413 41,020

State Police Retirement System 3,019 3,246

Judicial Retirement System 561 575

Alternate Benefit Program NA NA

Prison Officers’ Pension Fund 133 117

Consolidated Police & Firemen’s Pension Fund 224 175

Central Pension Fund 9 9

Total 284,782* 292,942*

*The number of retirees varies slightly from those reported in the Notes to theFinancial Statements due to differences in the effective dates of said tabulations.

PARTICIPATION IN HEALTH PROGRAM 2012 2013

State Health Benefits Program and 400,387 408,575School Employees’ Health Benefits Program

Prescription Drug Plan 337,743 342,730

Dental Expense Program 170,017 176,512

& BENEFICIARIES

HEALTH BENEFITSPROGRAM


MEMBERSHIP


As of June 30, 2013, the active membership of the systemtotaled 279,145. There were 156,099 retirees and beneficiariesreceiving annual pensions totaling $2,915,913,119*.

Beneficiaries of deceased active and retired members receivedlump sum death benefits in the amount of $124,961,201.

The system’s assets totaled $28,788,159,403 at the close of thefiscal year 2013.

* Includes cost-of-living adjustments paid under the provisionsof the Pension Adjustment Act.


As of June 30, 2013, the active membership of the fund totaled153,458. There were 91,701 retirees and beneficiaries receivingannual pensions totaling $3,601,020,357*.


The fund’s assets totaled $26,981,308,676 at the close of thefiscal year 2013.



As of June 30, 2013, the active membership of the systemtotaled 41,346. There were 41,020 retirees and beneficiariesreceiving annual pensions totaling $1,935,384,557*.




STATE POLICE RETIREMENT SYSTEM

As of June 30, 2013, the active membership of the systemtotaled 2,513. There were 3,246 retirees and beneficiariesreceiving annual pensions totaling $180,223,667*.




400 000

300 000

400,000

200 000

300,000

100 000

200,000

0

100,000

0

1925 1975 2011 2012 2013

180 000180,000

120,000

60,000

00

1920 1955 2011 2012 2013

60 00060,000

40,000

20,000

00

1950 1970 2011 2012 2013

4 000

3 000

4,000

2 000

3,000

1 000

2,000

0

1,000

0

1965 1980 2011 2012 2013

� Retirees and Beneficiaries � Active





MEMBERSHIP

600600

400

200

00

1983 1993 2011 2012 2013

25 000

20,000

25,000

15,000

10,000

0

5,000

0

1970 1990 2011 2012 2013

600600

400

200

00

1955 1970 1985 2012 2013

3,000

6,000

9,000

0

1955 1970 2011 2012 2013


� Active



JUDICIAL RETIREMENT SYSTEM

As of June 30, 2013, the active membership of the systemtotaled 417. There were 575 retirees and beneficiaries receivingannual pensions totaling $47,019,641.

The system’s assets totaled $234,681,070 at the close of thefiscal year 2013.

ALTERNATE BENEFIT PROGRAM

As of June 30, 2013, the State paid $158,149,329 on behalf of23,165 participants to the carriers underwriting this program.

Beneficiaries of deceased active and retired members received$17,613,359 in lump sum death benefits.

PRISON OFFICERS’ PENSION FUND

The activity shown to the right is consistent with a closed pen-sion fund.

This fund was closed to new membership in January 1960.

As of June 30, 2013, the active membership of the fund totaledzero. There were 117 retirees and beneficiaries receiving annu-al pensions totaling $1,763,964.

The fund’s assets totaled $8,318,421 at the close of the fiscalyear 2013.

CONSOLIDATED POLICE AND FIREMEN’S PENSION FUND

The activity shown to the right is consistent with a closed pen-sion fund.

As of June 30, 2013, the active membership of the fund totaledzero. There were 175 retirees and beneficiaries receiving annu-al pensions totaling $3,882,659.

The fund’s assets totaled $4,668,454 at the close of the fiscalyear 2013.


MEMBERSHIP

NJ STATE EMPLOYEES’ DEFERRED COMPENSATION PLAN

Fiscal year 2013 continues to show a marked increase in activeparticipation due to membership campaigns conducted by theDivision of Pensions and Benefits.

As of June 30, 2013, the active membership of the New JerseyState Employees’ Deferred Compensation Plan totaled 40,719.There were 5,564 members receiving monthly installment pay-ments.

The plan’s net assets (participants’ balances) were$2,940,893,014 at the close of the fiscal year 2013.

SUPPLEMENTAL ANNUITY COLLECTIVE TRUST

As of June 30, 2013, the active membership of the trust totaled3,022. The unit value was $72.1644, an increase of $10.0324from the June 30, 2012 value of $62.5365.

There were 432 annuitants.

The trust’s assets totaled $180,708,213 at the close of the fis-cal year 2013.

UNEMPLOYMENT COMPENSATION AND TEMPORARY DISABILITY INSURANCE

As of June 30, 2013, the Unemployment CompensationProgram for State employees covered as many as 122,835 per-sons, and the Division remitted $4,348,908.41 on behalf of theState. There were 8,323 requests for unemployment benefitsfiled, and $22,976,638 was paid to the employees found eligible.

During the same period, the Temporary Disability InsuranceProgram covered 140,899 employees, and the Division remitted$34,544,708.82 on behalf of the State. Claims paid totaled$33,724,267.

CENTRAL PENSION FUND

As of June 30, 2013, there were 9 beneficiaries receiving annu-al pensions totaling $189,540.

45 00045,000

30,000

15,000

00

1980 1990 2011 2012 2013

15,000

10,000

5,000

00

1965 1980 1995 2012 2013

150,000

100,000

50,000

00

1980 1990 2000 2012 2013

600600

400

200

00

1965 1980 2011 2012 2013



� State Employees

� Retirees and Beneficiaries


MEMBERSHIP

PENSION ADJUSTMENT EXPENSE

There were 226,712 pensioners who were paid $899,973,325during the fiscal year 2013.

STATE HEALTH BENEFITS PROGRAM AND SCHOOL EMPLOYEES’ HEALTH BENEFITS PROGRAM

As of June 30, 2013, there were 408,575 covered participants(active and retired) consisting of 143,425 State participants and265,150 participants of 1,126 local participating employers.

The State and state employee contributions were$1,479,211,068 while payment made by local (including educa-tion) employers and employees was $2,827,806,042.

PRESCRIPTION DRUG PLAN

The Prescription Drug Plan covered as many as 142,894 Stateparticipants and 199,836 local participants during fiscal year2013.

The State’s contribution was $420,615,439 while paymentmade by local (including education) employers was$650,149,663.

DENTAL EXPENSE PROGRAM

The Dental Expense Program covered as many as 118,224 eli-gible State participants and 58,288 local participants during fis-cal year 2013. The State of New Jersey as the employerexpended $33,594,744 for active participants while paymentmade by local (including education) employers was $3,491,411.

300 000300,000

200,000

100,000

00

1960 1980 2011 2012 2013

300,000

200,000

100,000

00

1961 1975 1985 2012 2013

240,000

160,000

240,000

80 000

160,000

0

80,000

0

1980 1990 2000 2012 2013

160 000

120 000

160,000

80 000

120,000

40 000

80,000

0

40,000

0

1980 1990 2000 2012 2013

� Retirees and Beneficiaries

� Local Participants � State Participants



FINANCIAL SECTION




STATE OF NEW JERSEYDIVISION OF PENSIONS AND BENEFITS

June 30, 2013

INDEX

Independent Auditors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Management’s Discussion and Analysis (Unaudited) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Basic Financial Statements:

Statement of Fiduciary Net Position — Fiduciary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Combining Statement of Fiduciary Net Position — Fiduciary Funds — Pension Trust and State Health Benefit Program Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Statement of Changes in Fiduciary Net Position — Fiduciary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Combining Statement of Changes in Fiduciary Net Position — Fiduciary Funds — Pension Trust and State Health Benefit Program Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

Schedules

1 Required Supplementary Information (Unaudited) — Schedule of Funding Progress . . . . . . . . . . . . . 82

2 Required Supplementary Information (Unaudited) — Schedule of Employer Contributions . . . . . . . . . 87

3 Schedule of Administrative Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

4 Schedule of Investment Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

5 Schedule of Expenses for Consultants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

6 Schedule of Fiduciary Net Position — Fiduciary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

7 Schedule of Changes in Fiduciary Net Position — Fiduciary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

8 Combining Schedule of Balance Sheet Information — Fiduciary Funds — Agency Funds . . . . . . . . . 94

9 Combining Schedule of Changes in Fiduciary Net Position Information — Fiduciary Funds — Agency Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

10 Combining Schedule of Fiduciary Net Position Information — State Health Benefit Program Fund — State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96

11 Combining Schedule of Changes in Fiduciary Net Position Information — State Health Benefit Program Fund — State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

12 Combining Schedule of Fiduciary Net Position Information — State Health Benefit Program Fund — Local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98

13 Combining Schedule of Changes in Fiduciary Net Position Information — State Health BenefitProgram Fund — Local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

14 Combining Schedule of Fiduciary Net Position Information — State Health Benefit Program Fund — Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

15 Combining Schedule of Changes in Fiduciary Net Position Information — State Health Benefit Program Fund — Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101

16 Combining Schedule of Balance Sheet Information — Agency Fund — Dental Expense Program . . . 102

17 Combining Schedule of Changes in Fiduciary Net Position Information — Agency Fund — Dental Expense Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103



June 30, 2013

INDEX

18 Schedule of Changes in Position and Liabilities Information — Agency Fund —Alternate Benefit Program Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104

19 Schedule of Changes in Position and Liabilities Information — Agency Fund —Pension Adjustment Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

20 Schedule of Changes in Position and Liabilities Information — Agency Fund —Dental Expense Program — Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106

21 Schedule of Changes in Position and Liabilities Information — Agency Fund —Dental Expense Program — State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107

22 Schedule of Changes in Position and Liabilities Information — Agency Fund —Dental Expense Program — Local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108

23 Combining Schedule of Fiduciary Net Position Information — Fiduciary Funds — Select Pension Trust Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

24 Combining Schedule of Changes in Fiduciary Net Position Information — Fiduciary Funds —Select Pension Trust Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110

25 Common Pension Funds — Portfolio of Investments — Equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

26 Common Pension Funds — Portfolio of Investments — Fixed Income . . . . . . . . . . . . . . . . . . . . . . . . . 146

27 Common Pension Funds — Portfolio of Investments — Alternative Investments and Global Diversified Credit Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182

28 Common Pension Funds — Portfolio of Investments — Derivatives . . . . . . . . . . . . . . . . . . . . . . . . . . . 187


INDEPENDENT AUDITORS’ REPORT

The TreasurerState of New Jersey:

Report on the Financial Statements

We have audited the accompanying financial statements of the State of New Jersey, Division of Pensionsand Benefits (the Division), as of and for the year ended June 30, 2013, and the related notes to the finan-cial statements, which collectively comprise the Division’s basic financial statements as listed in the tableof contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accor-dance with U.S. generally accepted accounting principles; this includes the design, implementation, andmaintenance of internal control relevant to the preparation and fair presentation of financial statements thatare free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conduct-ed our audit in accordance with auditing standards generally accepted in the United States of America.Those standards require that we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditors’ judgement, including the assess-ment of the risks of material misstatement of the financial statements, whether due to fraud or error. In mak-ing those risk assessments, the auditor considers internal control relevant to the entity’s preparation andfair presentation of the financial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's inter-nal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriatenessof accounting policies used and the reasonableness of significant accounting estimates made by manage-ment, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the plan netposition of the State of New Jersey, Division of Pensions and Benefits, as of June 30, 2013, and the respec-tive changes in plan net position thereof for the year then ended in accordance with U.S. generally accept-ed accounting principles.


Emphasis of Matter

As discussed in note 2, the financial statements referred to above are intended to present the fiduciary netposition and the changes in fiduciary net position of the benefit funds administered by the Division. As aresult, these financial statements do not purport to, and do not, present fairly the financial position of theState of New Jersey as of June 30, 2013 and the changes in its financial position, or, where applicable, itscash flows thereof for the year ended in conformity with accounting principles generally accepted in theUnited States of America. Our opinion is not modified with respect to this matter.

Other Matters

Required Supplementary Information

U.S. generally accepted accounting principles require that the management’s discussion and analysis andschedules of funding progress and employer contributions on pages 82-86 and 87-89, respectively, be pre-sented to supplement the basis financial statements. Such information, although not a part of the basicfinancial statements, is required by the Governmental Accounting Standards Board who considers it to bean essential part of financial reporting for placing the basic financial statements in an appropriate opera-tional, economic, or historical context. We have applied certain limited procedures to the required supple-mentary information in accordance with auditing standards generally accepted in the United States ofAmerica, which consisted of inquiries of management about the methods of preparing the information andcomparing the information for consistency with management’s responses to our inquiries, the basic finan-cial statements, and other knowledge we obtained during our audit of the basic financial statements. Wedo not express an opinion or provide any assurance on the information because the limited procedures donot provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information

Our audit was conducted for the purpose of forming an opinion on the financial statements that collective-ly comprise the Division’s basic financial statements. The supplementary information included in schedule3 through 28 as listed in the table of contents (the Schedules) are presented for purposes of additionalanalysis and are not a required part of the basic financial statements.

The Schedules are the responsibility of management and were derived from and relate directly to theunderlying accounting and other records used to prepare the basic financial statements. Such informationhas been subjected to the auditing procedures applied in the audit of the basic financial statements andcertain additional procedures, including comparing and reconciling such information directly to the under-lying accounting and other records used to prepare the basic financial statements or to the basic financialstatements themselves, and other additional procedures in accordance with auditing standards generallyaccepted in the United States of America. In our opinion, the Schedules are fairly stated, in all materialrespects, in relation to the basic financial statements as a whole.

Short Hills, New JerseyNovember 20, 2013



Management’s Discussion and AnalysisJune 30, 2013

Our discussion and analysis of the financial performance of the fiduciary funds (the Funds) administeredby the Division of Pensions and Benefits (the Division) provides an overview of the Funds’ financial activi-ties for the fiscal year ended June 30, 2013. Please read it in conjunction with the basic financial statementsand financial statement footnotes, which follow this discussion.

FINANCIAL HIGHLIGHTSFiduciary Funds — Pension Trust and State Health Benefit Program Funds

• Fiduciary net position increased by $4.0 billion as a result of this year’s operations from $77.9 billion to$81.9 billion.

• Additions for the year are $18.7 billion, which are comprised of member and employer pension contributions of $10.4 billion and investment income of $8.3 billion.

• Deductions for the year are $14.7 billion, which are comprised of benefit and refund payments of $14.6billion and administrative expenses of $49.5 million.

OVERVIEW OF THE FINANCIAL STATEMENTSThis discussion and analysis is intended to serve as an introduction to the basic financial statements. Thebasic financial statements are comprised of two components: 1) fiduciary fund financial statements and 2)notes to the financial statements. This report also contains required and other supplementary informationin addition to the basic financial statements.

FUND FINANCIAL STATEMENTSA fund is a grouping of related accounts that is used to maintain control over resources that have been seg-regated for specific activities or objectives. The Division uses fund accounting to ensure and demonstratecompliance with finance-related legal requirements.

Fiduciary Funds

Fiduciary funds are used to account for the assets that the Division holds on behalf of others as their agent.Fiduciary funds are custodial in nature and do not involve measurement of results of operations.

The Division administers eighteen fiduciary funds: twelve pension trust funds, three health benefit programfunds, and three agency funds.The basic fiduciary fund financial statements of the pensions trust and Statehealth benefit program funds consist of the statement of fiduciary net position and the statement ofchanges in fiduciary net position. The basic fiduciary fund financial statement of the agency fund is thestatement of fiduciary net position.

NOTES TO THE FINANCIAL STATEMENTSThe notes to the financial statements provide additional information that is essential to a full understand-ing of the data provided in the basic financial statements and includes a description of the fiduciary funds.

OTHER INFORMATIONIn addition to the basic financial statements and accompanying notes, this report also presents certainrequired supplementary information, which includes information regarding the funding status and employ-er contributions to the pension trust and State health benefit program funds.



Management’s Discussion and Analysis, ContinuedJune 30, 2013

FINANCIAL ANALYSISSUMMARY OF FIDUCIARY NET POSITION

PENSION TRUST AND STATE HEALTH BENEFIT PROGRAM FUNDS

2013 2012 Increase

Assets $ 85,002,257,252 80,497,592,498 4,504,664,754Liabilities 3,073,589,745 2,613,602,458 459,987,287

Net position $ 81,928,667,507 77,883,990,040 4,044,677,467

Assets of the pension trust and state health benefit program funds consist of cash and cash equivalents,investments, securities lending collateral, contributions due from members and participating employers,accrued interest and dividends on investments, members’ loans and other receivables. Between fiscalyears 2012 and 2013, total assets increased by $4.5 billion or 5.6%. This is due to an increase of $4.8 bil-lion in investment holdings that were utilized to pay benefits of the funds, an increase in the securities lend-ing collateral of $0.3 billion, offset by a net decrease in cash and cash equivalents and receivables of $0.6billion.

Liabilities of the pension trust and state health benefit program funds consist of retirement benefits payableto retirees and beneficiaries, contributory and noncontributory group life insurance (NCGI) premiumspayable to the Funds’ insurance provider, securities lending collateral and rebates payable and, classifiedunder accounts payable and accrued expenses, outstanding medical claims payable to the medicalproviders under the State Health Benefits Program (SHBP). Also included with accounts payable andaccrued expense are liabilities of the pension trust funds for unclaimed member accounts and checksissued to members that have not been negotiated by the members but remain due and payable. Total lia-bilities increased by $0.5 billion or 17.6%. This is due to an increase in the securities lending collateral andrebates payable of $0.4 billion and an increase in retirement benefits payable and others of $0.1 billion.

Net position of the pension trust and state health benefit program funds increased by $4.0 billion or 5.2%.

SUMMARY OF FIDUCIARY NET POSITIONAGENCY FUNDS

2013 2012 Increase

Assets $ 66,414,176 60,038,707 6,375,469Liabilities 66,414,176 60,038,707 6,375,469

Net position $ — — —

Assets of the agency funds consist of cash and cash equivalents, investments and contributions due fromthe State and local employers. Between fiscal years 2012 and 2013, total assets increased by $6.4 mil-lion or 10.6%. This is attributable to the increased amount invested in the Cash Management Fund (CMF)of $4.7 million, a net increase in cash and cash equivalents and receivables of $1.7 million.




Liabilities in the agency funds vary according to plan. In the Alternate Benefit Program (ABP), they includereimbursements to state and county colleges, reimbursement to the State of New Jersey general fund ofany unused appropriations and noncontributory group life insurance benefits payable. In the DentalExpense Program (DEP), they include claims payable, and in the Pension Adjustment Fund (PAF), theyinclude liabilities for payroll and amounts due to the State of New Jersey general fund and other pensionfunds. Between fiscal years 2012 and 2013, total liabilities increased by $6.4 million or 10.6%. This is com-prised of a $0.3 million increase in liabilities in the PAF, a $5.9 million increase in liabilities in DEP, and a$0.2 million increase in ABP liabilities.

SUMMARY OF CHANGES TO FIDUCIARY NET POSITIONPENSION TRUST AND STATE HEALTH BENEFIT PROGRAM FUNDS

2013 2012 Increase

Additions:Member contributions $ 2,474,368,350 2,309,269,955 165,098,395Employer contributions and other 7,950,263,650 6,912,323,830 1,037,939,820Net investment income 8,297,254,619 1,722,074,598 6,575,180,021

Total additions 18,721,886,619 10,943,668,383 7,778,218,236

Deductions:Benefits 14,455,603,860 13,923,519,412 532,084,448Refunds of contributions 172,134,350 157,270,934 14,863,416Administrative expenses 49,470,942 46,498,279 2,972,663

Total deductions 14,677,209,152 14,127,288,625 549,920,527

Changes in net position $ 4,044,677,467 (3,183,620,242) 7,228,297,709

Additions of the pension trust and state health benefit program funds consist of member and employer con-tributions and earnings from investment activities. There is an increase of $7.8 billion or 71.1% in total addi-tions, attributable to an increase in net investment income of $6.6 billion and an increase of $1.2 billion inmember and employer contributions in fiscal year 2013 as compared to fiscal year 2012.

Member contributions increased by $165.1 million overall, of which $60.2 million increase is attributable tothe state health benefit program funds and a $104.9 million increase is attributable to the pension trustfunds. In the SHBP – State, the member contributions increased by $50.7 million or 33.3%, in SHBP –Local the member contributions increased by $6.9 million or 16.1%, and in SHBP – Education, the mem-ber contributions increased by $2.6 million or 5.2%. Active employee contribution increased as a result ofChapter 78, P.L. 2011 premium share requirements. In plan year 2013, the active employee group rate forSHBP – State increased by 6.9%, in SHBP – Local the increase was 7.9% and in SHBP – Education theincrease was 14.7%. SHBP membership increases between plan years 2012 and 2013 also contributed tothe higher member contributions.

For the pension trust funds, the increase in member contributions is attributable to the higher member con-tribution rate for the various pension plans as required in Chapter 78, P.L. 2011.

Chapter 1, P.L. 2010, effective May 21, 2010, required the State to resume making actuarially recommend-ed contributions to the pension plans on a phased-in basis over a seven-year period begining in fiscal year2012. For fiscal year 2013, the State’s minimum required contribution was 2/7th of the full recommended




amounts determined on the basis of the July 1, 2011 actuarial valuation. Based on that, the State madepension contributions totaling $1,029.3 million as follows: $614.6 million to the Teachers’ Pension andAnnuity Fund (TPAF), $264.1 million to Public Employees’ Retirement System (PERS), $112.5 million toPolice and Firemen’s Retirement System (PFRS), $0.9 million to Consolidated Police and Firemen’sPension Fund (CPFPF), $11.6 million to Judicial Retirement System (JRS), and $25.6 million to the StatePolice Retirement System (SPRS).

State noncontributory group life insurance contributions for fiscal year totaling $79.5 million were as follows:$33.3 million for TPAF, $36.9 million for PERS, $6.4 million for PFRS, $0.7 million for JRS, and $2.2 millionfor SPRS. Between fiscal years 2012 and 2013, the State’s contribution toward noncontributory group lifeinsurance increased by $12.1 million due to higher claims activity. State noncontributory life insurance ben-efits are funded on a pay-as-you-go basis. The local contributions for PERS and PFRS are included in theannual billings to local employers.

The annual local employer pension appropriation billings increased per the actuarial valuation as of July 1,2011. For PERS, the amount accrued in fiscal year 2012 for normal contribution, accrued liability, and NCGIwas $784.7 milllion and was due on April 1, 2013. For fiscal year 2013, the total amount accrued was$834.6 million and is due April 1, 2014. For PFRS, the total amount accrued in fiscal year 2012 for normalcontributions, accrued liability, and NCGI was $781.2 million and was due April 1, 2013. For fiscal year2013, the total amount accrued was $777.0 million and is due April 1, 2014.

The SHBP – State employer contributions decreased by $57.3 million. For the SHBP – Local, employercontributions increased by $155.7 million. For the SHBP – Education, employer contributions increased by$228.1 million. These increases are attributable to rate increases effective January 1, 2012 and 2013, aswell as an increase in the number of covered members.

The total investment return for the pension trust funds was 11.78% compared to 2.52% in the prior year.Net investment income increased by $6.6 billion or 381.3% due to realized and unrealized gains on U.S.equities, developed market non-U.S. equities, and high yield fixed income securities caused by improvingeconomic conditions and accommodative monetary policies globally.

Deductions of the pension trust and state health benefit program funds are mainly comprised of pensionbenefit payments to retirees and beneficiaries, refunds of contributions to former members, and adminis-trative costs incurred by the Funds to operate the pension plans. Also included are claim charges for theself-insured health and prescription drug benefit programs. Between fiscal years 2012 and 2013, benefitpayments increased by $532.1 million or 3.8% due to an increase in the number of retirees receiving retire-ment and other benefits. The number of refunds processed increased by $14.9 million or 9.5% comparedto last year. Administrative expenses increased by $3.0 million or 6.4%.

The increase in net position of $4.0 billion was mainly attributable to the increase in investment incomewhen comparing fiscal year 2013 to fiscal year 2012.


INVESTMENT PERFORMANCE

The rates of return (i.e. investment performance, which includes income and changes in the fair value ofinvestments) for the Common Pension Funds, the Cash Management Fund, and various market indices areas follows:

YEAR ENDED JUNE 30

2013 2012

Total Rate of Return (%):All Pension Trust Funds(1) 11.78% 2.52%Common Pension Fund A (Domestic equity) 21.56 3.58Common Pension Fund B (Fixed income) 1.73 15.89Common Pension Fund D (International equity) 11.90 (16.53)Common Pension Fund E (Alternative investments) 11.63 1.63Cash Management Fund(2) 0.14 0.17

Returns of Various Market Indices (%):S&P Composite 1500 Index 21.13 4.63S&P 500 Index 20.60 5.45Dow Jones Industrial Average 18.87 6.63Barclays U.S. Government/Credit Index (0.62) 8.78Barclays Long Government/Credit (4.69) 24.58MSCI EAFE - Net (Developed Non-U.S.) 18.62 (13.83)MSCI Emerging Market Free - Net 2.87 (15.95)HFRI Fund of Funds Index 7.27 (5.40)NCREIF Property Index 10.73 12.04Cambridge Private Equity Index (3) 12.85 10.833-month Treasury bills 0.11 0.04

(1) Excludes returns on Police and Fire Mortgage Program.(2) Rate of return for State of New Jersey participants which includes the Pension Trust Funds.(3) Reported with a one quarter lag.

OVERALL FINANCIAL CONDITION OF THE FUNDS

For the defined benefit pension trust funds, the combined funded ratio is 64.5% based on the current actu-arial valuation dated July 1, 2012, with an unfunded actuarial accrued liability (UAAL) of $47.2 billion on anactuarial basis per Governmental Accounting Standards Board (GASB) Statement No. 25, FinancialReporting for Defined Benefit Plans and Note Disclosures for Defined Contribution Plans as compared to67.5% based on the prior year valuation with UAAL of $41.7 billion. The increase in the unfunded pensionliability and the decrease in the overall funded ratio is mainly attributable to the State making phased-incontributions to the pension plans beginning in fiscal year 2012 under Chapter 1, P.L. 2010. For fiscal year2013, the State contributed $1.029 billion or approximately 2/7th of the full recommended contribution of$3.600 billion determined on the basis of the July 1, 2011 actuarial valuation.

For the SHBP – Education, total revenues recognized exceeded total expenses incurred by $41.3 million,increasing the surplus at the beginning of the year from $183.9 million to $225.2 million at year end. Thisincrease is attributable to a gain on the active member side. The contribution rates for active members forcalendar year 2012 and 2013 included a 2% margin in order to produce a gain to raise the ClaimStabilization Reserve (CSR). The target CSR is equivalent to 2 months of plan costs, and as of June 30,2013, the CSR is approximately 1.5 months of plan costs. For the SHBP – State, total expenses incurredexceeded total revenues recognized by $53.0 million, increasing the balance from a deficit at the beginning




of the year of $100.1 million to a deficit of $153.2 million at year end. This increase in the deficit balance isdue to the State contributing less than the full required premium contributions in order to utilize availablecash reserves to meet incurred claim charges. For SHBP – Local, total revenues recognized exceeded totalexpenses incurred by $75.6 million, increasing the surplus at the beginning of the year from $147.9 millionto $223.5 million at year end. The increase in the surplus is due to margin being added to the calendar year2012 and 2013 premium rates in order to raise reserve levels.

For the state health benefit program funds for fiscal year 2013, based on the current actuarial valuationdated July 1, 2012, the State had a $19.3 billion unfunded actuarial accrued liability for other post-employ-ment benefits (OPEB) under GASB Statement No. 43, Financial Reporting for Postemployment BenefitPlans Other Than Pension Plans, for the SHBP – State active and retired members and $32.2 billion forthe SHBP – Education employees and retirees that become the obligation of the State of New Jersey uponretirement. In comparison, based on the prior year actuarial valuation, the State had a $18.1 billion unfund-ed actuarial accrued liability for the SHBP - State active and retired members and $30.9 billion for theSHBP - Education employees and retirees. This increase in the post-retirement medical UAAL is attributa-ble to the State funding post-retirement medical benefits on a pay-as-you-go basis as opposed to fundingon an actuarial reserve basis. The SHBP – Local fiscal year 2013 unfunded actuarial accrued liability forOPEB based on the same actuarial valuation was $12.4 billion and, for the prior year actuarial valuation,the liability was $11.1 billion.

During the year, the ABP and the PAF received sufficient funding to meet their benefit obligations.

For the State Employees Deferred Compensation Plan and the Supplemental Annuity Collective Trust,members are 100% vested in the present value of their contributions, and the funds have sufficient assetsto meet future benefit obligations.

CONTACTING SYSTEM FINANCIAL MANAGEMENT

This financial report is designed to provide our members, beneficiaries, investors, and other interested par-ties with a general overview of the Funds’ finances and to show the Funds’ accountability for the money itreceives. This report is available on the Division of Pensions and Benefits website at www.state.nj.us/treas-ury/pensions. If you have any questions about this report or need additional financial information, contactthe Division of Pensions and Benefits, P.O. Box 295, Trenton, NJ 08625-0295.





Statement of Fiduciary Net PositionFiduciary Funds

June 30, 2013

PENSION TRUST ANDSTATE HEALTH BENEFIT AGENCY

PROGRAM FUNDS FUNDS

Assets:Cash and cash equivalents $ 6,879,644 1,572,900Securities lending collateral 1,556,965,543 —Investments, at fair value:

Cash Management Fund 2,254,597,761 32,917,968Common Pension Fund A 20,964,307,768 —Common Pension Fund B 17,034,005,939 —Common Pension Fund D 14,689,068,951 —Common Pension Fund E 20,015,522,984 —Common stocks 177,323,777 —Mortgages 835,483,242 —U.S. Government obligations 399,045,275 —Domestic equities 1,308,850,841 —International equities 269,977,576 —Other fixed income securities 909,186,823 —

Total investments 78,857,370,937 32,917,968

Receivables:Contributions:

Members 204,779,532 628,277Employers 3,247,848,178 —

Accrued interest and dividends 4,655,008 —Members’ loans 1,057,464,740 —Securities sold in transit 45,498,972 —Other 20,794,698 31,295,031

Total receivables 4,581,041,128 31,923,308

Total assets 85,002,257,252 66,414,176

Liabilities:Accounts payable and accrued expenses 753,021,603 63,024,395Retirement benefits payable 749,773,762 —Cash Overdraft 639,342 —Noncontributory group life insurance premiums payable 14,113,195 —Assets held for local contributing employers — 2,861,776Pension adjustment payroll payable — 252,882Due to State of New Jersey — 250,629Due to other funds — 24,494Securities lending collateral and rebates payable 1,556,041,843 —

Total liabilities 3,073,589,745 66,414,176

Net Position:Held in trust for pension and health benefits $ 81,928,667,507 —

See schedule of funding progress on pages 82-86.See accompanying notes to financial statements.


Combining Statement of Fiduciary Net PositionFiduciary Funds — Pension Trust and State Health Benefit Program Funds

June 30, 2013

ALTERNATE CONSOLIDATED STATE HEALTH STATE HEALTH STATE HEALTH BENEFIT POLICE AND DEFINED POLICE AND PRISON PUBLIC STATE SUPPLEMENTAL TEACHERS’ BENEFIT BENEFIT BENEFIT

LONG-TERM CENTRAL FIREMEN’S DEFERRED CONTRIBUTION JUDICIAL FIREMEN’S OFFICERS’ EMPLOYEES’ POLICE ANNUITY PENSION AND PROGRAM PROGRAM PROGRAMDISABILITY PENSION PENSION COMPENSATION RETIREMENT RETIREMENT RETIREMENT PENSION RETIREMENT RETIREMENT COLLECTIVE ANNUITY FUND FUND FUND

FUND FUND FUND PLAN PLAN SYSTEM SYSTEM FUND SYSTEM SYSTEM TRUST FUND STATE LOCAL EDUCATION TOTAL

Assets:

Cash and cash equivalents $ — 21,588 84,580 — 16,598 51,720 1,992,216 214,172 656,487 529,005 292,328 1,365,512 816,188 450,743 388,507 6,879,644

Securities lending collateral — — — — — 4,786,681 428,286,574 — 532,645,247 37,999,531 — 553,247,510 — — — 1,556,965,543

Investments, at fair value:

Cash Management Fund 109,580 434 4,354,730 54,634,315 953,016 6,800,546 190,011,329 8,033,501 687,473,519 27,300,704 2,338,735 506,121,173 58,829,316 276,062,786 431,574,077 2,254,597,761

Common Pension Fund A — — — — — 66,578,189 5,760,867,621 — 7,190,554,565 520,114,573 — 7,426,192,820 — — — 20,964,307,768

Common Pension Fund B — — — — — 51,397,224 4,870,208,286 — 5,894,378,053 396,838,281 — 5,821,184,095 — — — 17,034,005,939

Common Pension Fund D — — — — — 44,584,609 4,019,607,827 — 5,010,785,888 358,088,374 — 5,256,002,253 — — — 14,689,068,951

Common Pension Fund E — — — — — 59,034,849 5,617,716,153 — 6,812,680,963 483,122,321 — 7,042,968,698 — — — 20,015,522,984

Common Stocks — — — — — — — — — — 177,323,777 — — — — 177,323,777

Mortgages — — — — — — 835,483,242 — — — — — — — — 835,483,242

U.S. government obligations — — — 399,045,275 — — — — — — — — — — — 399,045,275

Domestic equities — — — 1,308,850,841 — — — — — — — — — — — 1,308,850,841

International equities — — — 269,977,576 — — — — — — — — — — — 269,977,576

Other fixed income securities — — — 909,186,823 — — — — — — — — — — — 909,186,823

Total investments 109,580 434 4,354,730 2,941,694,830 953,016 228,395,417 21,293,894,458 8,033,501 25,595,872,988 1,785,464,253 179,662,512 26,052,469,039 58,829,316 276,062,786 431,574,077 78,857,370,937

Receivables:

Contributions:

Members — — — — — 252,827 51,395,322 — 71,020,892 1,074,313 517,555 78,322,751 531,090 872,245 792,537 204,779,532

Employers — — — — — 67,840 964,876,818 — 2,072,511,300 — — 71,469,595 6,227,807 74,989,837 57,704,981 3,247,848,178

Accrued interest and dividends — 1 23 1,095,540 — 29 3,319,010 10 2,017 120 235,818 2,440 — — — 4,655,008

Members’ loans — — — — — 965,480 308,953,101 — 507,935,995 17,394,165 — 222,215,999 — — — 1,057,464,740

Securities sold in transit — — — — — — 45,498,972 — — — — — — — — 45,498,972

Other 1,537,116 — 229,121 — — 161,076 6,135,472 70,738 7,514,477 22,381 — 2,215,830 924,587 847,594 1,136,306 20,794,698

Total receivables 1,537,116 1 229,144 1,095,540 — 1,447,252 1,380,178,695 70,748 2,658,984,681 18,490,979 753,373 374,226,615 7,683,484 76,709,676 59,633,824 4,581,041,128

Total assets 1,646,696 22,023 4,668,454 2,942,790,370 969,614 234,681,070 23,104,351,943 8,318,421 28,788,159,403 1,842,483,768 180,708,213 26,981,308,676 67,328,988 353,223,205 491,596,408 85,002,257,252

Liabilities:

Accounts payable and accrued expenses — 969 2,718 1,258,014 — (307) 3,893,232 1,239 73,859,676 283,901 115,938 57,025,057 220,496,302 129,671,252 266,413,612 753,021,603

Retirement benefits payable — 21,054 311,920 — — 3,998,889 163,573,676 145,263 254,882,489 15,523,488 2,330,261 308,986,722 — — — 749,773,462

Cash overdraft — — — 639,342 — — — — — — — — — — — 639,342

Non-contributory group insurance premiums payable — — — — — 67,840 3,914,928 — 7,051,884 73,714 — 3,004,829 — — — 14,113,195

Securities lending collateral and rebates payable — — — — — 4,783,831 428,032,562 — 532,329,180 37,976,943 — 552,919,327 — — — 1,556,041,843

Total liabilities — 22,023 314,638 1,897,356 — 8,850,253 599,414,398 146,502 868,123,229 53,858,046 2,446,199 921,935,935 220,496,302 129,671,252 266,413,612 3,073,589,745

Net position held in trust for pension and health benefits $ 1,646,696 — 4,353,816 2,940,893,014 969,614 225,830,817 22,504,937,545 8,171,919 27,920,036,174 1,788,625,722 178,262,014 26,059,372,741 (153,167,314) 223,551,953 225,182,796 81,928,667,507

See accompanying notes to financial statements.


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PENSION TRUST ANDSTATE HEALTH BENEFIT

PROGRAM FUNDS

Additions:Contributions:

Members $ 2,474,368,350Employers 7,946,873,907Other 3,389,743

Total contributions 10,424,632,000

Investment income:Net appreciation in fair value of investments 6,329,233,230Interest 1,503,398,736Dividends 479,409,930

8,312,041,896

Less investment expense 14,787,277

Net investment income 8,297,254,619

Total additions 18,721,886,619

Deductions:Benefits 14,455,603,860Refunds of contributions 172,134,350Administrative and miscellaneous expenses 49,470,942

Total deductions 14,677,209,152

Change in net position 4,044,677,467

Net position held in trust for pension and health benefits:Beginning of year 77,883,990,040

End of year $ 81,928,667,507



Statement of Changes in Fiduciary Net PositionFiduciary Funds

Year ended June 30, 2013


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Combining Statement of Changes in Fiduciary Net PositionFiduciary Funds — Pension Trust and State Health Benefit Program Funds


ALTERNATE CONSOLIDATED STATE HEALTH STATE HEALTH STATE HEALTH BENEFIT POLICE AND DEFINED POLICE AND PRISON PUBLIC STATE SUPPLEMENTAL TEACHERS’ BENEFIT BENEFIT BENEFIT

LONG-TERM CENTRAL FIREMEN’S DEFERRED CONTRIBUTION JUDICIAL FIREMEN’S OFFICERS’ EMPLOYEES’ POLICE ANNUITY PENSION AND PROGRAM PROGRAM PROGRAMDISABILITY PENSION PENSION COMPENSATION RETIREMENT RETIREMENT RETIREMENT PENSION RETIREMENT RETIREMENT COLLECTIVE ANNUITY FUND FUND FUND

FUND FUND FUND PLAN PLAN SYSTEM SYSTEM FUND SYSTEM SYSTEM TRUST FUND STATE LOCAL EDUCATION TOTAL

Additions:

Contributions:

Members $ — — — 177,296,365 — 3,402,807 387,775,184 — 845,999,525 21,875,233 6,635,320 726,523,838 202,711,158 50,048,889 52,100,031 2,474,368,350

Employers 3,037,116 168,000 911,150 — 1,482,976 12,308,419 898,531,390 — 1,184,446,277 27,781,894 — 655,428,958 1,749,261,868 1,088,415,378 2,325,090,481 7,946,873,907

Other — 22,214 2,477,987 — — — — 889,542 — — — — — — — 3,389,743

Total contributions 3,037,116 190,214 3,389,137 177,296,365 1,482,976 15,711,226 1,286,306,574 889,542 2,030,445,802 49,657,127 6,635,320 1,381,962,796 1,951,973,026 1,138,464,267 2,377,190,512 10,424,632,000

Investment income:

Net appreciation (depreciation) in fair value of investments (26) — 33 290,569,604 14 20,375,064 1,614,143,598 43 2,017,407,576 147,528,030 27,063,319 2,212,137,760 1,735 3,131 3,349 6,329,233,230

Interest 2,901 98 4,443 2,444,034 1,747 4,094,823 451,072,019 11,556 518,799,577 32,889,692 2,753 492,704,785 332,015 403,866 634,427 1,503,398,736

Dividends — — — 9,308,591 — 1,480,483 128,102,996 — 159,894,593 11,565,660 3,923,184 165,134,423 — — — 479,409,930

2,875 98 4,476 302,322,229 1,761 25,950,370 2,193,318,613 11,599 2,696,101,746 191,983,382 30,989,256 2,869,976,968 333,750 406,997 637,776 8,312,041,896

Less: investment expense — — 4,259 252,745 — 18,343 1,538,058 2,529 8,275,163 110,128 — 4,586,052 — — — 14,787,277

Net investment income 2,875 98 217 302,069,484 1,761 25,932,027 2,191,780,555 9,070 2,687,826,583 191,873,254 30,989,256 2,865,390,916 333,750 406,997 637,776 8,297,254,619

Total additions 3,039,991 190,312 3,389,354 479,365,849 1,484,737 41,643,253 3,478,087,129 898,612 4,718,272,385 241,530,381 37,624,576 4,247,353,712 1,952,306,776 1,138,871,264 2,377,828,288 18,721,886,619

Deductions:

Benefits 2,949,360 189,540 3,882,659 124,062,368 1,207,760 47,684,869 1,969,468,736 1,763,964 3,040,874,320 182,418,714 12,238,930 3,673,109,659 2,001,820,015 1,061,533,307 2,332,399,659 14,455,603,860

Refunds of contributions — 772 — — — — 6,883,956 — 117,985,236 38,884 — 47,225,502 — — — 172,134,350

Administrative and miscellaneous expenses — — 11,739 454,350 — 163,232 3,881,457 6,965 22,814,653 294,886 — 12,482,060 3,510,600 1,713,172 4,137,828 49,470,942

Total deductions 2,949,360 190,312 3,894,398 124,516,718 1,207,760 47,848,101 1,980,234,149 1,770,929 3,181,674,209 182,752,484 12,238,930 3,732,817,221 2,005,330,615 1,063,246,479 2,336,537,487 14,677,209,152

Net increase (decrease) 90,631 — (505,044) 354,849,131 276,977 (6,204,848) 1,497,852,980 (872,317) 1,536,598,176 58,777,897 25,385,646 514,536,491 (53,023,839) 75,624,785 41,290,801 4,044,677,467

Net position held in trust for pension and health benefits:

Beginning of year 1,556,065 — 4,858,860 2,586,043,883 692,637 232,035,665 21,007,084,565 9,044,236 26,383,437,998 1,729,847,825 152,876,368 25,544,836,250 (100,143,475) 147,927,168 183,891,995 77,883,990,040

End of year $ 1,646,696 — 4,353,816 2,940,893,014 969,614 225,830,817 22,504,937,545 8,171,919 27,920,036,174 1,788,625,722 178,262,014 26,059,372,741 (153,167,314) 223,551,953 225,182,796 81,928,667,507




Notes to Financial StatementsJune 30, 2013

(1) DESCRIPTION OF THE FUNDS

The State of New Jersey (the State) sponsors and administers the following benefit funds which have beenincluded in the basic financial statements of the State of New Jersey Division of Pensions and Benefits (theDivision), collectively referred to as the Funds, Systems, and Trust or the pension funds:

Fiduciary Funds

PENSION TRUST AND STATE HEALTH BENEFIT PROGRAM FUNDS

Judicial Retirement System (JRS)Consolidated Police and Firemen’s Pension Fund (CPFPF)Police and Firemen’s Retirement System (PFRS)Prison Officers’ Pension Fund (POPF)Public Employees’ Retirement System (PERS)State Police Retirement System (SPRS)Teachers’ Pension and Annuity Fund (TPAF)Supplemental Annuity Collective Trust (SACT)Central Pension Fund (CPF)New Jersey State Employees Deferred Compensation Plan (NJSEDCP)Defined Contribution Retirement Program (DCRP)Alternate Benefit Long-Term Disability Fund (ABPLTD)State Health Benefit Program Fund (SHBP) - StateState Health Benefit Program Fund (SHBP) - LocalState Health Benefit Program Fund (SHBP) - Education

AGENCY FUNDS

Pension Adjustment Fund (PAF)Alternate Benefit Program Fund (ABP)Dental Expense Program Fund (DEP)

Stand alone financial reports for Agency Funds, SHBP, NJSEDCP, and SACT have been prepared. Thesefinancial reports, which can be obtained from the Division or on its website at www.state.nj.us/treasury/pen-sions, provide a description of the nature and purpose of each of these funds. Descriptions of the contri-bution requirements and benefit provisions for these funds are provided in notes 5 and 6, respectively.

The pension trust funds are single-employer defined benefit pension plans, except for PERS and PFRS, whichare cost-sharing multiple-employer defined benefit plans, TPAF and CPFPF, which are cost-sharing defined ben-efit plans with a special funding situation, and SACT, NJSEDCP, DCRP, and ABPLTD which are single-employerdefined contribution plans.

The Prescription Drug Program (PDP) of each respective SHBP are combined and reported as a trust fundwith the respective SHBP – State, SHBP – Local and SHBP – Education plans. The SHBP – State is clas-sified as a single-employer plan. The SHBP – Local and SHBP – Education are classified as cost-sharingmultiple-employer plans.

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of the Division have been prepared in conformity with accounting principles gen-erally accepted in the United States of America as applied to governmental entities. GovernmentalAccounting Standards Board (GASB) is the accepted standard-setting body for establishing governmentalaccounting and financial reporting principles.


STATE OF NEW JERSEYDIVISION OF PENSIONS AND BENEFITSNotes to Financial Statements, Continued

June 30, 2013

Reporting Entity

The financial statements include all funds which are administered by the Division over which operating con-trols are with the individual funds, systems, or trust governing Boards and/or the State of New Jersey. Thefinancial statements of the Funds, Systems, and Trust are included in the financial statements of the Stateof New Jersey; however, the accompanying financial statements are intended to present solely the fundslisted above which are administered by the Division and not the State of New Jersey as a whole.

Fund Accounting

The accounts of the Division are maintained in accordance with the principles of fund accounting to ensureobservance of limitations and restrictions on the resources available. The principles of fund accounting requirethat the resources be classified for accounting and reporting purposes into funds in accordance with activities orobjectives specified for the resources. Each fund is a separate accounting entity with a self-balancing set ofaccounts.

Fiduciary Funds

Pension trust and State health benefit program funds – Account for monies received for, expenses incurredby and the net position available for plan benefits of the various public employee retirement systems andhealth benefit programs.

Agency funds – Agency funds are used to account for the assets that the Division holds on behalf of oth-ers as their agent. Agency funds are custodial in nature and do not involve measurement of results of oper-ations.

Measurement Focus and Basis of Accounting

The accounting and financial reporting treatment applied to a fund is determined by its measurement focus.All funds are accounted for using an economic resources measurement focus.

The accrual basis of accounting is used for measuring financial position and changes in net position of thepension trust and health benefit program funds. Under this method, revenues are recorded in the account-ing period in which they are earned, and deductions are recorded at the time the liabilities are incurred.The financial statements of the pension trust funds conform to the provisions of GASB Statement No. 25,Financial Reporting for Defined Benefit Plans and Note Disclosures for Defined Contributions Plans (GASBStatement No. 25). The financial statements of the health benefit program funds conform to the provisionsof the GASB Statement No. 43, Financial Reporting for Postemployment Benefit Plans Other Than PensionPlans (GASB Statement No. 43). Employer contributions are recognized when payable to the Funds.Benefits and refunds are recognized when due and payable in accordance with the terms of the Funds.

Capital Assets

Capital assets utilized by the Division include equipment which is owned by the State of New Jersey.

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued



June 30, 2013

Membership and Contributing Employers

Membership and contributing employers of the pension trust funds consisted of the following at July 1,2012, the date of the most recent actuarial valuations. Membership of the health benefit program funds forOPEB is based on the valuation dated July 1, 2012, and its participating employer count is from theDivision’s data base as of June 30, 2013. Member counts of SACT, CPF, NJSEDCP, and ABPLTD arebased on the Division’s data base as of June 30, 2013:

JRS CPFPF PFRS POPF PERS SPRS

Retiree members:Retirees and beneficiaries

receiving benefits currently 535 241 39,712 135 152,593 3,030Terminated employees

entitled to benefits but not yet receiving them 3 — 55 — 1,032 —

Total retiree members 538 241 39,767 135 153,625 3,030

Active members:Vested 196 — 28,645 — 151,547 1,675Non-vested 211 — 12,174 — 128,611 1,046

Total active members 407 — 40,819 — 280,158 2,721

Total 945 241 80,586 135 433,783 5,751

Contributing Employers 1 57 582 1 1,712 1

SHBPTPAF SACT CPF NJSEDCP ABPLTD (OPEB)

Retiree members:Retirees and beneficiaries

receiving benefits currently 89,308 432 9 5,564 — 217,744Terminated employees

entitled to benefits but not yet receiving them 392 — — — — —

Total retiree members 89,700 432 9 5,564 — 217,744

Active members:Vested 85,670 3,022 — 40,719 154 384,994Non-vested 64,530 — — — — —

Total active members 150,200 3,022 — 40,719 154 384,994

Total 239,900 3,454 9 46,283 154 602,738

Contributing Employers 27# — 1 — 1 585

# In addition to the State, who is the sole payer of regular employer contributions to the fund, TPAF’s contributing employers include boards of education who elected to participate in the Early Retirement Incentive Programs and continue to pay towards their incurrued liability.




June 30, 2013

Membership in the agency funds administered by the Division consisted of the following as of June 30, 2013:

STATE LOCAL TOTAL

Dental Expense Program Fund* 118,224 58,288 176,512Alternate Benefit Program Fund** 20,070 3,095 23,165Pension Adjustment Fund 117,280 109,432 226,712

* Active and retired participants** Including those receiving long-term disability benefits

Investments

The Division of Investment, Department of the Treasury, State of New Jersey (Division of Investment) man-ages and invests certain assets of seven of the defined benefit plans (PERS, TPAF, JRS, PFRS, CPFPF,SPRS and POPF) and two defined contribution plans (SACT and NJSEDCP). The Division of Investmentaccounts included in the Division of Pensions and Benefits report are: Common Pension Fund A, CommonPension Fund B, Common Pension Fund D, Common Pension Fund E (collectively known as the CommonPension Funds), Police and Firemen’s Mortgage Program accounts, and other investments owned direct-ly by the seven defined benefit pension plans. Common Pension Fund A invests primarily in domestic equi-ty securities. Common Pension Fund B invests primarily in fixed income securities. Common Pension FundD invests primarily in international equity securities. Common Pension Fund E invests primarily in alterna-tive investments, which includes private equity, real estate, real asset, and absolute return strategy funds.The Police and Firemen’s Retirement System includes a mortgage loan program administered by the NewJersey Housing and Mortgage Finance Agency that provides participants with mortgages from the programat rates which are fixed by formula. The law establishing the program provides that the pension fund maynot sell the mortgages, and no independent market exists for them.

Prudential Retirement is the third party administrator for the NJSEDCP. Prudential Retirement providesrecordkeeping, administration services and access to 22 investments through a combination of their sep-arate account product offerings and retail branded mutual funds. The four state-managed investmentsoptions (DCP Bond Fund, DCP Equity Fund, DCP Small Cap Equity Fund and DCP Money Market Fund)are closed to new investments. The Division of Investment is the fiduciary for the investments of the Plan.The Division of Pensions and Benefits maintains its administrative oversight functions for the Plan.

Investments are reported at fair value as follows:

• U.S. Government and Agency, Sovereign and Corporate obligations – prices quoted by a majordealer in such securities.

• Police and Firemen’s mortgages – estimated market prices obtained from an independent broker.

• Domestic and Foreign Equity Securities, Exchanged Traded Funds, Forward Foreign ExchangeContracts – closing prices as reported on the primary market or exchange on which they trade.

• Money Market Instruments – amortized cost which approximates fair value.

• Cash Management Fund – closing net position on the last day of trading during the period as deter-mined by the Transfer Agent.

• Alternative investments (private equity, real estate, real asset, and absolute return strategy funds)– Fair values for the individual funds are based upon the net asset values for the funds at the clos-est available reporting date, adjusted for subsequent contributions, distributions, management feesand reserves. The valuation techniques vary based upon investment type and involve a certaindegree of expert judgment. The most significant input into the net asset value of an entity is the




June 30, 2013

value of its investment holdings. The net asset value is provided by the general partner and/orinvestment manager and reviewed by management. The net asset values are audited annually. Thestrategy of private equity and real estate funds are long term and illiquid in nature which can pre-vent the investment from being readily marketable. Hedge funds may be subject to redemptionrestrictions which can limit distributions and restrict the ability of a limited partner to exit a partner-ship. For alternative investments, the realized value received upon the sale of these investments inthe open market might be different than the fair value reported in the accompanying financial state-ments.

• Common Pension Funds – net position of the fund on the last day of the period as determined bythe custodian.

Investment transactions are accounted for on a trade or investment date basis. Gains and losses frominvestment transactions are determined by the average cost method. Interest and dividend income isrecorded on the accrual basis, with dividends accruing on the ex-dividend date.

Securities Lending

The State Investment Council policies permit Common Pension Funds A, B and D, and several of the directpension plan portfolios to participate in securities lending programs, whereby securities are loaned to bro-kers or other borrowers and, in return, the pension funds have rights to the collateral received. All of thepublicly traded securities held in Common Pension Funds A, B and D, and certain securities held directlyby the pension plans, are eligible for the securities lending program. Collateral received may consist ofcash, letters of credit, or government securities having a market value equal to or exceeding 102% (U.S.dollar denominated) or 105% (non-U.S. dollar denominated) of the value of the loaned securities at the timethe loan is made. Collateral is marked to market daily and adjusted as needed to maintain the required min-imum level.

For loans of U.S. government securities or sovereign debt issued by non-U.S. governments, in the eventthat the market value of the collateral falls below 100% of the market value of the outstanding loaned secu-rities to an individual borrower, or the market value of the collateral of all loans of such securities falls belowthe collateral requirement, additional collateral shall be transferred by the borrower to the respective fundsno later than the close of the next business day so that the market value of such additional collateral togeth-er with collateral previously delivered meets the collateral requirements.

For loans of all other types of securities, in the event that the market value of the collateral falls below thecollateral requirement of either 102% or 105% (depending on whether the securities are denominated inU.S. dollars or a foreign currency, respectively) of the market value of the outstanding loaned securities toan individual borrower, additional collateral shall be transferred in an amount that will increase the aggre-gate of the borrower’s collateral to meet the collateral requirements. As of June 30, 2013, the CommonPension Funds have no aggregate credit risk exposure to borrowers because the collateral amount held bythe Common Pension Funds exceeded the market value of the securities on loan.

The contracts with the Common Pension Funds’ securities lending agent require them to indemnify theCommon Pension Funds if the brokers or other borrowers fail to return the securities and provides that col-lateral securities may be sold in the event of a borrower default. The Common Pension Funds are alsoindemnified for any loss of principal or interest on collateral invested in repurchase agreements. TheCommon Pension Funds cannot participate in any dividend reinvestment program or vote with respect toany securities that are on loan on the applicable record date. The securities loans can be terminated bynotification by either the borrower or the Common Pension Funds. The term to maturity of the securitiesloans is generally matched with the term to maturity of the investment of the cash collateral.




June 30, 2013

Derivatives

The Division of Investment, from time to time, utilizes forward foreign currency contracts, a derivative secu-rity, as a means to hedge against currency risks in the Common Pension Funds’ foreign equity and fixedincome portfolios. Forward foreign currency contracts are agreements to buy or sell a specific amount of aforeign currency at a specified delivery or maturity date for an agreed upon price.

The fair value of foreign forward currency contracts held directly by the Common Pension Funds as of June30, 2013 was as follows:

Forward currency receivable $ 902,092,557Forward currency payable 893,530,515

Net unrealized gain $ 8,562,042

The Common Pension Funds utilize covered call and put options in an effort to add value to or reduce therisk level in the portfolio. Options are agreements that give the owner of the option the right, but not obliga-tion, to buy (in the case of a call option) or to sell (in the case of a put option) a specific amount of an assetfor a specific price (called the strike price) on or before a specified expiration date. The Common PensionFunds enter into covered calls when its writes (or sells) call options on underlying stocks held by theCommon Pension Funds or stock indices. The Common Pension Funds enter into covered put optionswhen it purchases put options on underlying stocks held by the Common Pension Funds or stock indices.The Common Pension Fund enters into put spreads when it purchases put options while simultaneouslywriting put options on the same underlying securities of indices at a lower strike price. The purchaser of putoptions pays a premium at the outset of the agreement and stands to gain from an unfavorable change(i.e., a decrease) in the price of the instrument underlying the option. The writer of call options receives apremium at the outset of the agreement and may bear the risk of an unfavorable change (i.e., an increase)in the price of the instrument underlying the option.

The Common Pension Funds had written call options as of June 30, 2013 on 5,325,000 shares, and theseoptions had a fair value of ($6,750,100). As of June 30, 2013 the Common Pension Funds owned 15,000put option contracts with a fair value of $6,675,000.

The fair values of all derivative instruments as of June 30, 2013 are included within the net position of theCommon Pension Funds at fair value, in the Division’s statement of fiduciary net position. The change infair value for all derivative instruments from fiscal year 2012 to fiscal year 2013 was $12,871,341 and isincluded as a component of the net appreciation in fair value of investments in the Division’s statement ofchanges in fiduciary net position.

Certain of the alternative investment funds and partnerships may use derivative instruments to hedgeagainst market risk and to enhance investment returns. At any point during the year, the Common PensionFunds may have additional exposure to derivatives primarily through limited liability vehicles such as limit-ed partnerships and commingled investment funds.

Members’ Loans

Members of JRS, PFRS, SPRS, PERS and TPAF who have at least three years of service in these plansmay borrow up to 50% of their accumulated member contributions. Repayment of loan balances is deduct-ed from payroll checks and bears a commercially reasonable interest rate as set by the State Treasurer.For 2013 the interest rate is 5.25%, and there is an $8 processing fee per loan. Members who retire withan outstanding loan have the option of paying the loan in full prior to receiving any benefits or continuingtheir monthly loan payment schedule into retirement.




June 30, 2013

Administrative Expenses

Administrative expenses are paid by the Funds and the Systems to the State of New Jersey, Departmentof the Treasury and are included in the accompanying financial statements.

In certain funds (JRS, PFRS, PERS, SPRS and TPAF) miscellaneous expenses and reimbursements fromthe fund that comprise various adjustments to member and employer accounts are incorporated into theadministrative expense amounts included in the accompanying financial statements. These miscellaneousitems are not part of the supplementary information included in the Schedule of Administrative Expenses(Schedule 3). Additionally, State Health Benefit Program Fund – State, Local and Education administrativeexpenses are included in administrative expenses in the accompanying financial statements but are notincluded in the supplementary information in Schedule 3.

Income Tax Status

Based on Internal Revenue Service (IRS) determination letters received in January 2012 for TPAF, PERS,POPF, JRS, and SPRS and in June 2012 for PFRS and CPFPF, the seven pension funds comply with thequalification requirements of the Internal Revenue Code (IRC).The ABP received a determination letter thatit complies with the qualification requirements of the IRC in September 2012. The DCRP received a simi-lar determination letter in January 2013.

The NJSEDCP is an eligible plan as described in Section 457 of the IRC.

Commitments

The Common Pension Funds are obligated, under certain private equity, real estate, real asset, andabsolute return strategy alternative investment and global diversified credit fund agreements to make addi-tional capital contributions up to contractual levels over the investment period specified for each investment.As of June 30, 2013, the Common Pension Funds had unfunded commitments totaling approximately $8.9billion.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in theUnited States requires management to make estimates and assumptions that affect the reported amountsof assets and liabilities at the date of the financial statements and the reported amounts of income andexpense during the reporting period. Actual results could differ from those estimates.

Funded Status and Funding Progress

The required supplementary information regarding the funded status and funding progress is based onactuarial valuations which involve estimates of the value of reported amounts and assumptions about theprobability of events far into the future. These amounts are subject to continual revision as actual resultsare compared to past expectations and new estimates are made about the probability of future events.

The required schedule of funding progress presents multi year trend information about whether the actuar-ial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability forbenefits.

Actuarial calculations reflect a long term perspective and are based on the benefits provided under Statestatutes in effect at the time of each valuation and also consider the pattern of the sharing of costs betweenthe employer and members at that point in time. The projection of benefits for financial reporting purposesdoes not explicitly incorporate the potential effects of legal or contractual funding limitations on the patternof cost sharing between the employer and members in the future.



Actuarial Methods and Assumptions

In the July 1, 2012 actuarial valuations, the date of the most recent actuarial valuations, the projected unitcredit was used as actuarial cost method, and the five year average of market value was used as asset val-uation method for pension trust funds. The actuarial assumptions included (a) 7.90% for investment rate ofreturn for all the retirement systems except POPF (5.00%) and CPFPF (2.00%) and (b) changes to pro-jected salary increases, which vary by fund and are presented on the following pages.

OPEB used the projected unit credit as actuarial cost method. The actuarial assumptions for OPEB includ-ed 4.50% for investment rate of return.


June 30, 2013




June 30, 2013

A summary of the significant actuarial methods and assumptions used by the Funds and Systems as ofthe most recent actuarial date of July 1, 2012 are as follows:

JRS CPFPF PFRS - State PFRS - Local POPF

Actuarial valuation date July 1, 2012 July 1, 2012 July 1, 2012 July 1, 2012 July 1, 2012

Actuarial value of assets $278,548,470 $6,282,439 $2,074,049,503 $21,500,537,273 $9,044,236

Actuarial accrued liability 605,180,634 8,026,421 4,026,954,882 27,705,168,437 5,395,505

Unfunded (overfunded)actuarial accrued liability 326,632,164 1,743,982 1,952,905,379 6,204,631,164 (3,648,731)

Funded ratio 46.0% 78.3% 51.5% 77.6% 167.6%

Covered payroll $67,497,660 N/A $517,324,007 $3,138,894,566 N/A

Unfunded (overfunded)actuarial accrued liability as a percentage of covered payroll 483.9% N/A 377.5% 197.7% N/A

Actuarial cost methodProjected unit

creditProjected unit




credit

Asset valuation method5 year average of

market value5 year average of



market value Market value

Amortization methodLevel dollar,

openLevel dollar,

closedLevel dollar,

openLevel dollar,

openLevel dollar,

closed

Remaining amortizationperiod 30 years 1 year 30 years 30 years 1 year

Actuarial assumptions:Interest rate 7.90% 2.00% 7.90% 7.90% 5.00%

Salary range 2.50% N/A 6.01% 6.01% N/A

Cost-of-livingadjustments —% N/A —% —% N/A



SHBP - State SHBP - Local SHBP - Education

Actuarial valuation date July 1, 2012 July 1, 2012 July 1, 2012

Actuarial value of assets $ — $ — $ —

Actuarial accrued liability 19,319,700,000 12,378,100,000 32,182,900,000

Unfunded (overfunded) actuarial accrued liability 19,319,700,000 12,378,100,000 32,182,900,000

Funded ratio — — —

Covered payroll $7,695,193,894 $2,937,000,000 $12,818,706,106

Unfunded (overfunded) actuarial accrued liabilityas a percentage of covered payroll 251.1% 421.5% 251.1%

Actuarial cost method Projected unit credit Projected unit credit Projected unit credit

Amortization method Level dollar, open Level dollar, open Level dollar, open

Remaining amortization period 30 years 30 years 30 years

Actuarial assumptions:Interest rate

4.50% (assuming no prefunding)

4.50%(assuming no prefunding)

4.50% (assuming no prefunding)

Salary range N/A N/A N/A

Cost-of-living adjustments N/A N/A N/A

For medical benefits, the healthcare cost trend rate assumption initially is at 8.5% and decreases to a 5.0% long-term trend ratefor all medical benefits after 8 years, except for NJ Direct Post-65 whose rate assumption is 5.0% throughout 8 years. For pre-scription drug benefits, the initial healthcare cost trend rate assumption is 8.5% decreasing to a 5.0% long-term trend rate after8 years. For Medicare Part B reimbursement, the healthcare cost trend rate assumption is 5.0% throughout 8 years.

PERS - State PERS - Local SPRS TPAF

Actuarial valuation date July 1, 2012 July 1, 2012 July 1, 2012 July 1, 2012

Actuarial value of assets $9,512,074,226 $19,374,461,309 $1,969,806,447 $31,214,185,683

Actuarial accrued liability 19,383,584,639 26,009,038,341 2,767,768,813 52,637,346,396

Unfunded (overfunded) actuarial accrued liability 9,871,510,413 6,634,577,032 797,962,366 21,423,160,713

Funded ratio 49.1% 74.5% 71.2% 59.3%

Covered payroll $4,570,958,470 $6,862,133,165 $283,219,927 $9,779,212,916

Unfunded (overfunded) actuarial accrued liability as a percentage of covered payroll 216.0% 96.7% 281.7% 219.1%

Actuarial cost methodProjected unit



creditProjected unit,

credit

Asset valuation method5 year average of




merket value

Amortization methodLevel dollar,

openLevel dollar,

openLevel dollar,

openLevel dollar,

open

Remaining amortization period 30 years 30 years 30 years 30 years

Actuarial assumptions:Interest rate 7.90% 7.90% 7.90% 7.90%

Salary range 4.22% 4.22% 3.45% 3.51%

Cost-of-living adjustments —% —% —% —%



June 30, 2013



June 30, 2013

(3) INVESTMENTS

The Division’s investments (including investments held directly by the Common Pension Funds)as of June30, 2013 are as follows:

On June 12, 2013 Common Pension Fund E entered into a secondary sale agreement to sell 25 real estatefunds valued at approximately $925 million. The agreement included a $50 million deposit, which will beapplied to the first $50 million of transferred interest. The sales agreement called for 55% of purchase priceto be paid upon closing and the remaining 45% to be paid over the course of four years. Subsequent toJune 30, 2013, Common Pension Fund E closed on 10 of the 25 real estate funds included in the second-ary sale agreement that was entered into on June 12, 2013.

New Jersey state statute provides for a State Investment Council (Council) and a Director. Investmentauthority is vested in the Director of the Division of Investment and the role of the Council is to formulateinvestment policies. The Council issues regulations which establish guidelines for permissible investmentsfor the Common Pension Funds managed by the Division of Investment, which include domestic and inter-national equities and exchange traded funds, covered call options, put options, equity futures contracts,obligations of the U.S. Treasury, government agencies, corporations, international governments and agen-cies, global diversified credit investments, interest rate swap transactions, credit default swaps, fixedincome exchange traded funds, U.S. Treasury futures contracts, state and municipal general obligations,public authority revenue obligations, collateralized notes and mortgages, commercial paper, certificates ofdeposit, repurchase agreements, bankers acceptances, guaranteed income contracts, funding agree-ments, money market funds, private equity funds, real estate funds, other real assets, absolute return strat-egy funds, and the State of New Jersey Cash Management Fund (CMF). The CMF is a short term cashfund and is open to state and certain nonstate participants.

The funds’ investment in the CMF is not evidenced by securities that exist in physical or book entry formheld by the funds.

TotalCommon

Pension FundsOther Funds (3)

Cash management funds $2,287,515,729 1,430,095,502 857,420,227Domestic equities 23,860,613,277 22,374,438,659 1,486,174,618International equities 13,398,919,561 13,128,941,985 269,977,576Domestic fixed income 12,756,621,284 11,493,775,308 1,262,845,976International fixed income (1) 2,773,410,320 2,728,024,198 45,386,122Global diversified credit funds 1,814,698,753 1,814,698,753 —Police and Firemen’s mortgages 835,483,242 835,483,242 —Private equity funds 6,006,689,452 6,006,689,452 —Real estate funds 3,513,185,996 3,513,185,996 —Absolute return strategy funds 7,369,340,961 7,369,340,961 —Real assets 1,523,110,312 1,523,110,312 —Put options 6,675,000 6,675,000 —Future contracts (233,000) (233,000) —Other (2) 2,744,258,018 2,744,258,018 —

$78,890,288,905 74,968,484,386 3,921,804,519

(1) Primary US dollar denominated securities(2) Includes assets (other than investments) and liabilities included in the net position of the Common Pension Funds(3) Includes SACT, NJSEDCP, CPF, ABPLTD, DCRP, Health, and Agency Funds


Custodial credit risk, as it relates to investments, is the risk that in the event of the failure of the custodian,the funds will not be able to recover the value of investments or collateral securities that are in the posses-sion of the third party. The funds’ investment securities are not exposed to custodial credit risk as they areheld in segregated trust accounts in the name of the funds with the custodians.

The Division’s investments are subject to various risks. Among these risks are credit risk, concentration ofcredit risk, interest rate risk, and foreign currency risk. Each one of these risks is discussed in more detailbelow.

Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Thecredit risk of issuers and debt instruments is evaluated by nationally recognized statistical rating agenciessuch as Moody’s Investors Service, Inc. (Moody’s), Standard & Poor’s Corporation (S&P), and FitchRatings (Fitch). Concentration of credit risk is the risk of loss attributed to the magnitude of an investmentin a single issuer. There are no restrictions in the amount that can be invested in United States Treasuryand government agency obligations. Council regulations require minimum credit ratings for certain cate-gories of fixed income obligations held directly by the various funds and limit the amount that can be invest-ed in any one issuer or issue.


June 30, 2013

(3) INVESTMENTS, Continued


Category

Minimum Rating (1)

Limitation ofIssuer’s

Outstanding Debt/Stock

Limitation of Issue Other LimitationsMoody’s S&P Fitch

Certificates of deposit andBanker’s acceptances:

DomesticInternational

A3/P-1Aa3/P-1

A-/A-1AA-/A-1

A-/F1AA-/F1

——

——

Investment in certificates ofdeposit and banker’s accept-ances cannot exceed 10% ofissuer’s primary capital

Collateralized notes and mortgages

Baa3 BBB- BBB- — 25% Not more than 5% of fundassets can be invested inany one issue; not more than10% of fund assets (or 20%of Common Pension Fund Bassets) can be invested inthis category

Commercial paper P-1 A-1 F1 — — —

Corporate obligations Baa3 BBB- BBB- 10% — Not more than 5% of fundassets can be invested indebt and nonconvertible pre-ferred stock of one issuer

Credit default swap transactions

A1 A+ A+ — — Nominal value of net exposureto any one counterparty shallnot exceed 10% of fundassets

Fixed income exchange traded funds

— — — — — Not more than 4% of fundassets can be invested inany one exchange tradedfund. Limited to 5% of sharesor units outstanding

Global diversified credit investments:Direct bank loansFunds

Baa3Baa3

BBB-BBB-

BBB-BBB-

10%—

——

Not more than 7% of pensionand annuity fund assets canbe invested in this category

Guaranteed income contractsand funding agreements

A3 A- A- — — —

Interest rate swaptransactions

A1 A+ A+ — — Notional value of net exposureto any one counterpart shallnot exceed 10% of fundassets

International corporate obligations

Baa3 BBB- BBB- 10% — Not more than 5% of fundassets can be invested indebt and nonconvertible preferred stockof any oneissuer;not more than 25% of thepension and annuity fundassets can be invested in thiscategory


June 30, 2013

The credit ratings and limits for the Common Pension Funds as of June 30, 2013 are as follows:



(1) Short term ratings (e.g. P-1, A-1, F-1) are used for commercial paper and certificates of deposit.

The above table does not include Prudential Retirement investments for the NJSEDCP.The NJSEDCP con-sists of a number of individual investment managers, which individually have investment guidelines thatthey comply with and follow.

Up to 8% of the market value of the combined assets of the pension funds may be invested in corporateobligations, international corporate obligations, collateralized notes and mortgages, global diversified cred-it investments, nonconvertible preferred stock, and mortgage backed pass through securities that do notmeet the minimum credit rating requirements set forth above.

Category

Minimum Rating (1)Limitation of

Issuer’s Outstanding Debt/Stock

Limitation of Issue Other LimitationsMoody’s S&P Fitch

International government andagency obligations

Baa3 BBB- BBB- 25% Greater of 25%or $10 million

Not more than 5% of fundassets can be invested inany one issuer; Not morethan 5% of the pension andannuity fund assets can beinvested in this category

Money market fund — — — — — Not more than 10% of fundassets can be invested inmoney market funds; limitedto 5% of shares or units outstanding

Mortgage backed pass-throughsecurities

A3 A- A- — — Not more than 5% of fundassets can be invested inany one issue

Mortgage backed senior debtsecurities

— — — — 25% Not more than 5% of fundassets can be invested inany one issue

Nonconvertible preferred stocksof US corporations

Baa3 BBB- BBB- 10% 25% Not more than 5% of fundassets can be invested indebt and nonconvertiblestock of any one corporation

Public authority revenue obligations

A3 A- A- — 10% Not more than 2% of fundassets can be invested inany one public authority

Repurchase agreementsBank or trust companyBroker

—P-1

—A-1

—F1

——

——

——

State and municipal general obligations

A3 A- A- 10% 10% Not more than 2% of fundassets can be invested indebt of any one political enti-ty maturing more than 12months from purchase



June 30, 2013


The tables do not include certain domestic and international corporate obligations and certain exchange trad-ed funds (ETFs) totaling $110,622,390 which invest in an underlying portfolio of fixed income securities and donot have a Moody’s, Standard & Poor’s or Fitch rating. The above tables also do not include Police andFiremen’s mortgages totaling $835,483,242, and the Cash Management Fund totaling $2,287,515,729, whichare not rated.

Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment.Commercial paper must mature within 270 days. Certificates of deposits and bankers acceptances are limitedto a term of one year or less. Repurchase agreement must mature within 30 days. The investment in guaran-teed income contracts and funding agreements is limited to a term of 10 years or less.

Moody’s Rating (1)

Aaa Aa A Baa Ba B C Ca Caa Unrated Totals

Corporate obligations $417,134 725,168 2,134,737 2,303,720 462,816 708,008 156 2,314 316,401 2,247 7,072,701

United States treasury tips 1,605,922 — — — — — — — — — 1,605,922

United States treasury bonds 1,042,942 — — — — — — — — — 1,042,942

Foreign government obligations 645,455 1,642,562 42,742 3,667 — 1 — — — 72 2,334,499

International corporate obligations 21,466 9,022 275,068 233,085 60,399 64,407 — — 20,677 327 684,451

Mortgages (FHLMC/FNMA/GNMA) 320,763 7,556 2,588 741 191 103 — 52 222 11,930 344,146

United States governmentstrips 114,690 — — — — — — — — — 114,690

Federal agency obligations 331,247 — — — — — — — — 2,155 333,402

SBA pass through certificates 118,543 — — — — — — — — — 118,543

Other 79,817 725,812 300,551 310 15 — — — — 222,552 1,329,057

$4,697,979 3,110,120 2,755,686 2,541,523 523,421 772,519 156 2,366 337,300 239,283 14,980,353


June 30, 2013

For securities in the fixed income portfolio, the following tables disclose aggregate market value, by major cred-it quality rating category as of June 30, 2013. The tables include the fixed income securities held directly by theCommon Pension Funds, as well as those held by Prudential Retirement. The first table includes fixed incomesecurities rated by Moody’s. The second table discloses Standard & Poor’s ratings for fixed income securitiesnot rated by Moody’s. The third table discloses Fitch ratings for fixed income securities not rated by Moody’s orStandard & Poor’s (in thousands).


Fitch Rating

A B BB CCC Totals

Corporate obligations 29,770 724 4,601 3,543 38,638

International corporate obligations — 903 — — 903

29,770 1,627 4,601 3,543 39,541

Standard and Poor’s Rating

A AA AAA B BB BBB CCC D Totals

Corporate obligations $162,0098 — — 18,966 2,529 97,719 3,650 305 285,267

International corporate obligations — — — 3,754 2,062 1,066 — — 6,882

Other 17,187 52,887 37,292 — — — — — 107,366

$179,285 52,887 37,292 22,720 4,591 98,785 3,650 305 399,515



As of June 30, 2013, the credit ratings of the counterparties to the forward currency contracts held by theCommon Pension Funds had a Moody’s credit rating of no less than A3.

The following table summarizes the maturities (or, in the case of Remics, Police and Firemen’s Mortgagesand mortgage-backed securities, the expected average life) of the fixed income portfolio as of June 30,2013. The table includes investments held directly by the Common Pension Funds, as well as those heldby Prudential Retirement (in thousands).

Fixed Income Investment Type

Maturities in Years

Total Fair Value

Lessthan 1 1-5 6-10

Morethan 10 Unknown

Corporate obligations $11,869 1,373,422 3,254,107 2,802,070 — 7,441,467United States treasury itips 55,690 752,320 697,691 100,221 — 1,605,922United States treasury bonds — 743,206 36,490 263,246 — 1,042,942Foreign government obligations 550 267,157 1,428,570 638,222 — 2,334,499International corporate obligations 13,291 98,068 218,768 375,205 — 705,332Mortgages (FHLMC/FNMA/GNMA) 335 1,120 6,169 336,522 — 344,146United States government strips — — — 114,690 — 114,690Federal agency obligations — 36,240 201,512 95,650 — 333,402SBA pass through certificates — 41,226 77,317 — — 118,543Police and Firemen’s mortgage

program 3 1,941 20,282 813,257 — 835,483Asset backed obligations — — — 52,665 — 52,665Other 1,345 11,439 169,944 1,253,404 291 1,436,423

$83,083 3,326,139 6,110,850 6,845,152 291 16,365,514

The Common Pension Funds invest in global markets. Foreign currency risk is the risk that changes inexchange rates will adversely affect the fair value of an investment.The market value of international pre-ferred and common stocks and debt issues convertible into common stock, and the shares or interest ininternational exchanged-traded, global, regional, or country funds, when combined with the market valueof international government, agency and corporate obligations, cannot exceed 30% of the market valueof the pension funds. The market value of emerging market securities cannot exceed 50% of the per-centage derived by dividing the total market capitalization of companies included in the Morgan StanleyCapital International (MSCI) Emerging Market Index by the total market capitalization of the companiesincluded in the MSCI All-Country World Ex-United States Index of the total market value of the combinedassets of the pension funds. Not more than 10% of the market value of the emerging market securitiesheld by the Common Pension Funds can be invested in the common and preferred stock of any one cor-poration. The total amount of stock purchased of any one corporation cannot exceed 5% of its stockclasses eligible to vote. Council regulations permit the pension funds to enter into foreign exchange con-tracts for the purpose of hedging the international portfolio.


June 30, 2013


The Common Pension Funds and Prudential Retirement had the following foreign currencyexposure as of June 30, 2013 (expressed in U.S. dollars):

The pension funds’ interests in alternative investments may contain elements of credit, currency andmarket risk. Such risks include, but are not limited to, limited liquidity, absence of regulatory oversight,dependence upon key individuals, speculative investments (both derivatives and nonmarketableinvestments), and nondisclosure of portfolio composition. Council regulations provide that not morethan 38% of the market value of the pension funds can be invested in alternative investments, withlimits on the individual investment categories of real estate (9%), real assets (7%), private equity(12%) and absolute return strategy (15%). Not more than 5% of the market value of CommonPension Fund E, plus outstanding commitments, may be committed to any one partnership or invest-ment, without the prior written approval of the Council. The investments in Common Pension Fund Ecannot comprise more than 20% of any one investment manager’s total assets.


Currency EquitiesFixed

IncomeAlternative

InvestmentsTotal

Fair Value

Australian dollar $600,121,096 — — 600,121,096

Brazilian real 239,794,417 — — 239,794,417

Canadian dollar 897,468,737 43,052,194 — 940,520,931

Czech koruna 3,305,748 — — 3,305,748

Danish krone 82,784,766 — — 82,784,766

Egyptian pound 9,684,297 — — 9,684,297

Euro 2,341,948,554 — 338,807,013 2,680,755,567

Hong Kong dollar 630,737,634 — — 630,737,634

Hungarian forint 33,657,099 — — 33,657,099

Indonesian rupiah 125,243,905 — — 125,243,905

Israeli shekel 26,310,123 — — 26,310,123

Japanese yen 1,991,581,903 — — 1,991,581,903

Malaysian ringgit 66,208,390 — — 66,208,390

Mexican peso 67,859,670 — — 67,859,670

New Taiwan dollar 18,366,102 — — 18,366,102

Norwegian krone 68,775,179 — — 68,775,179

Pakistan rupee 9,971,183 — — 9,971,183

Philippine peso 60,539,211 — — 60,539,211

Polish zloty 48,118,404 — — 48,118,404

Pound sterling (U.K.) 1,520,203,551 157,533,896 31,232,373 1,708,969,820

Singapore dollar 162,881,338 — — 162,881,338

South African rand 202,640,032 — — 202,640,032

South Korean won 395,339,362 — — 395,339,362

Swedish krona 267,112,600 — — 267,112,600

Swiss franc 911,435,859 — — 911,435,859

Thailand baht 110,433,746 — — 110,433,746

Turkish lira 127,708,583 — — 127,708,583

US dollar 231,847,633 — — 231,847,633

Other 10,856,425 — — 10,856,425

$11,262,935 200,586,090 370,039,386 11,833,561,023


June 30, 2013



June 30, 2013

As of June 30, 2013, the net position of Common Pension Fund E included $299 million related to the sec-ondary sale of certain private equity funds which is due from the purchasers in November and December2013.

(4) SECURITIES LENDING COLLATERAL

The securities lending collateral is subject to various risks. Among these risks are custodial credit risk, creditrisk, concentration of credit risk, and interest rate risk. Securities lending collateral is invested in repurchaseagreements, the maturities of which cannot exceed 30 days. The collateral for repurchase agreements is lim-ited to obligations of the U.S. Government or certain U.S. Government agencies, collateralized notes andmortgages and corporate obligations meeting certain minimum rating criteria. Total exposure to any individ-ual issuer is limited consistent with internal policies for funds managed by the Division of Investment.

For securities exposed to credit risk in the collateral portfolio, the following table discloses aggregate fair value,by major credit quality rating category as of June 30, 2013 (in thousands).

Custodial credit risk for investments is the risk that in the failure of the counterparty to the transaction, thepension funds will not recover the value of the investments that are in the possession of an outside party.The repurchase agreement’s underlying securities are held in the pension funds’ name.

As of June 30, 2013, the pension funds had outstanding loaned investment securities with an aggregatemarket value of $1,508,264,740 and did not hold any noncash collateral. There were no borrowers or lend-ing agent default losses, and no recoveries or prior period losses during the year. Overinvested cash is theresult of loans being returned after investments in repurchase agreements were already finalized for theday.


RatingAaa/AAA Not Rated Totals

Repurchase agreements $1,650,000 — $1,650,000Cash — (94,563) (94,563)

$1,650,000 (94,563) $1,555,437



June 30, 2013

(5) CONTRIBUTIONS

The information as reflected below represents actual contributions from the State, and the percentagesas derived are inclusive of such actual contributions made for fiscal year 2013. These amounts and per-centages as presented below may be different than those reflected in Schedule 2, as the amounts andpercentages as shown in Schedule 2 include NCGI contributions for the applicable funds and are esti-mates based upon the most recent actuarial valuations.

Contribution Requirements – JRS

The contribution policy is set by N.J.S.A. 43:6A and requires contributions by active members and theState of New Jersey. Plan member and employer contributions may be amended by State of NewJersey legislation. Members enrolled on January 1, 1996 or after, contribute at 3% on their entire basesalary. Contributions by active members enrolled prior to January 1, 1996 are based on 3% of the dif-ference between their current salary and the salary of the position on January 18, 1982. Pursuant tothe provisions of Chapter 78, P.L. 2011, the active member contribution rate is being increased from3% to 12%, phased-in over seven years for members hired or reappointed after June 28, 2011. For fis-cal year 2012, the member contribution rate for new members increased in October 2011. The phase-in of the additional incremental member contribution rate takes place in July of each subsequent fiscalyear. The member contribution rate was 5.56% in fiscal year 2013. The State of New Jersey contribu-tion amount is based on an actuarially determined rate. The annual employer contributions includefunding for basic retirement allowances, cost-of-living adjustments and noncontributory death benefits.

Chapter 1, P.L. 2010, effective May 21, 2010, required the State to resume making actuarially recom-mended contributions to the pension plans on a phased-in basis over a seven-year period beginningin fiscal year 2012. For fiscal year 2013, the State’s minimum required contribution was 2/7th of the fullrecommended amounts determined on the basis of the July 1, 2011 actuarial valuation. The Statemade a contribution of $11.6 million, excluding the State’s contribution for noncontributory group lifeinsurance (NCGI) of $0.7 million, for fiscal year 2013. The amount contributed for fiscal year 2013 isequal to 2/7th or 28.6% of the actuarially determined contribution amount per State statute.Additionally, the amount contributed equals 25.6% of the Annual Required Contribution (ARC) deter-mined per the requirements of GASB Statement No. 25 and GASB Statement No. 27, Accounting forPensions by State and Local Governmental Employers (GASB Statement No. 27).

Contribution Requirements – CPFPF

There are no active members in the CPFPF.

The State made a contribution of $0.9 million. Local employers contributed $14.1 thousand, represent-ing administrative fees billed to various locations in fiscal year 2013.

Contribution Requirements – PFRS

The contribution policy is set by N.J.S.A. 43:16A and requires contributions by active members andcontributing employers. Plan member and employer contributions may be amended by State of NewJersey legislation. Employers’ contribution amounts are based on an actuarially determined rate. Theannual employer contributions include funding for basic retirement allowances, cost-of-living adjust-ments, and noncontributory death benefits. Pursuant to the provisions of Chapter 78, P.L. 2011, theactive member contribution rate increased from 8.5% to 10% in October 2011.



June 30, 2013

Chapter 19, P.L. 2009, effective March 17, 2009, provided an option for local employers to contribute 50%of the normal and accrued liability contribution amounts certified by PFRS for payments due in State fiscalyear 2009. This law also provided that a local employer may pay 100% of the required contribution. Suchan employer will be credited with the full payment and any such amounts will not be included in theirunfunded liability. The actuaries for PFRS will determine the unfunded liability of those retirement systems,by employer, for the reduced normal and accrued liability contributions provided under this law.This unfund-ed liability will be paid by the employer in level annual payments over a period of 15 years beginning withthe payments due in the State fiscal year ending June 30, 2012 and will be adjusted by the rate of returnon the actuarial value of assets.

Chapter 1, P.L. 2010, effective May 21, 2010, required the State to resume making actuarially recommend-ed contributions to the pension plans on a phased-in basis over a seven-year period beginning in fiscal year2012. For fiscal year 2013, the State’s minimum required contribution was 2/7th of the full recommendedamounts determined on the basis of the July 1, 2011 actuarial valuation. The State made this contributionof $112.5 million, excluding $6.4 million for NCGI and $0.2 million for miscellaneous items due to the sys-tem, for fiscal year 2013. The amount contributed for fiscal year 2013 is equal to 2/7th or 28.6% of the actu-arially determined contribution amount per State statute. Additionally, the amount contributed equals 25.8%of the ARC determined per the requirements of GASB Statements No. 25 and 27.

The local employers’ contribution amounts include the billing for their pension, NCGI, Early RetirementIncentive (ERI) contributions for those who participate in the various ERI programs, and other miscella-neous items that are due to the system. For fiscal year 2013, the amount accrued for the annual appropri-ation billings due April 1, 2014 is $777.0 million.

Contribution Requirements – POPF

There are no active members in the POPF. Accordingly, based on actuarial valuation, there is no normalcost or accrued liability contribution required by employers for fiscal year 2013.

Contribution Requirements – PERS

The contribution policy is set by N.J.S.A. 43:15A and requires contributions by active members and con-tributing employers. Plan member and employer contributions may be amended by State of New Jerseylegislation. Members contribute at a uniform rate. Pursuant to the provisions of Chapter 78, P.L. 2011, theactive member contribution rate increased from 5.5% of annual compensation to 6.5% plus an additional1% phased-in over 7 years beginning in July 2012. The member contribution rate was 6.64% in fiscal year2013. The phase-in of the additional incremental member contribution rate takes place in July of each sub-sequent fiscal year. The rate for members who are eligible for the Prosecutors Part of PERS (Chapter 366,P.L. 2001) increased from 8.5% of base salary to 10%. Employers’ contribution amounts are based on anactuarially determined rate. The annual employer contributions include funding for basic retirementallowances, cost-of-living adjustments, and noncontributory death benefits.

Chapter 19, P.L. 2009, effective March 17, 2009, provided an option for local employers to contribute 50%of the normal and accrued liability contribution amounts certified by PERS for payments due in State fiscalyear 2009. This law also provided that a local employer may pay 100% of the required contribution. Suchan employer will be credited with the full payment and any such amounts will not be included in theirunfunded liability. The actuaries for PERS will determine the unfunded liability of those retirement systems,by employer, for the reduced normal and accrued liability contributions provided under this law.This unfund-

(5) CONTRIBUTIONS, Continued


ed liability will be paid by the employer in level annual payments over a period of 15 years beginning withthe payments that were due in the State fiscal year ended June 30, 2012 and will be adjusted by the rateof return on the actuarial value of assets.

Chapter 1, P.L. 2010, effective May 21, 2010, required the State to resume making actuarially recommend-ed contributions to the pension plans on a phased-in basis over a seven-year period beginning in fiscal year2012. For fiscal year 2013, the State’s minimum required contribution was 2/7th of the full recommendedamounts determined on the basis of the July 1, 2011 actuarial valuation. The State made this contributionof $264.1 million, excluding $36.9 million for NCGI, $1.5 million for miscellaneous items due to the systemand $42.6 million for the current year present value of the State’s ERI liability, for fiscal year 2013. Theamount contributed for fiscal year 2013 is equal to 2/7th or 28.6% of the actuarially determined contribu-tion amount per State statute. Additionally, the amount contributed equals 25.3% of the ARC determinedper the requirements of GASB Statements No. 25 and 27.

The local employers’ contribution amounts include the billing for their pension, NCGI, ERI contributions forthose who participate in the various ERI programs, and other miscellaneous items that are due to the sys-tem. For fiscal year 2013, the amount accrued for the annual appropriation billings due April 1, 2014 is$834.6 million.

Contribution Requirements – SPRS

The contribution policy is set by N.J.S.A. 53:5A and requires contributions by active members and the Stateof New Jersey. Plan member and employer contributions may be amended by State of New Jersey legis-lation. Pursuant to the provisions of Chapter 78, P.L. 2011, the active member contribution rate increasedfrom 7.5% to 9% in October 2011. The State of New Jersey contribution amount is based on an actuarial-ly determined rate. The annual employer contributions include funding for basic retirement allowances, costof living adjustments and noncontributory death benefits.

Chapter 1, P.L. 2010, effective May 21, 2010, required the State to resume making actuarially recommend-ed contributions to the pension plans on a phased-in basis over a seven-year period beginning in fiscal year2012. For fiscal year 2013, the State’s minimum required contribution was 2/7th of the full recommendedamounts determined on the basis of the July 1, 2011 actuarial valuation. The State made a contribution of$25.6 million, excluding the State’s contribution for NCGI of $2.2 million, for fiscal year 2013. The amountcontributed for fiscal year 2013 is equal to 2/7th or 28.6% of the actuarially determined contribution amountper State statute. Additionally, the amount contributed equals 25.6% of the ARC determined per therequirements of GASB Statements No. 25 and 27.

Contribution Requirements – TPAF

The contribution policy is set by N.J.S.A. 18A:66 and requires contributions by active members and con-tributing employers. Plan member and employer contributions may be amended by State of New Jerseylegislation. Pursuant to the provisions of Chapter 78, P.L. 2011, the active member contribution rateincreased from 5.5% of annual compensation to 6.5% plus an additional 1% phased-in over 7 years begin-ning in July 2012. The member contribution rate was 6.64% in fiscal year 2013. The phase-in of the addi-tional incremental member contribution rate takes place in July of each subsequent fiscal year. The Stateof New Jersey contribution amount is based on an actuarially determined rate. The annual employer con-tributions include funding for basic retirement allowances, cost-of-living adjustments, and noncontributorydeath benefits.


June 30, 2013




June 30, 2013

Chapter 1, P.L. 2010, effective May 21, 2010, required the State to resume making actuarially recommend-ed contributions to the pension plans on a phased-in basis over a seven-year period beginning in fiscal year2012. For fiscal year 2013, the State’s minimum required contribution was 2/7th of the full recommendedamounts determined on the basis of the July 1, 2011 actuarial valuation. The State made this contributionof $614.6 million, excluding $33.3 million for NCGI, $5.8 million for miscellaneous items due to the system,and $1.7 million for the current year present value of the State’s ERI liability, for fiscal year 2013. Theamount contributed for fiscal year 2013 is equal to 2/7th or 28.6% of the actuarially determined contribu-tion amount per State statute. Additionally, the amount contributed equals 26.4% of the ARC determinedper the requirements of GASB Statements No. 25 and 27.

Contribution Requirements – SACT

Participants contribute through payroll deductions and may contribute from 1% to 100% of their basesalary, as defined. Contributions are voluntary and may be suspended at the beginning of any quarter.Contributions under the Tax Sheltered Supplemental Annuity Plan are subject to Federal law limitations andqualify for tax sheltered treatment permitted under Section 403(b) of the IRC. Participants are always fullyvested for the accumulated units in their accounts.

Contribution Requirements – CPF

The State of New Jersey makes an annual appropriation payment to the CPF to pay current year benefits.The contribution requirements were established by the aforementioned statutes and are not actuariallydetermined.

The contribution amount required and paid by the State of New Jersey for the fiscal year ended June 30,2013 was $168.0 thousand.

Contribution Requirements – SHBP – State (including PDP – State)

Contributions to pay for the health premiums of participating employees in the SHBP – State are collectedfrom the State of New Jersey, active and retired members, and former active and retired members whohave elected to participate under the rules of the Consolidated Omnibus Budget Reconciliation Act(COBRA). The State of New Jersey provides contributions for State employees through State appropria-tions. These appropriations are generally distributed to the SHBP on a monthly basis. Active and retiredmember contributions are generally received on a monthly basis.

Contributions to pay for the premiums of participating employees in the PDP are collected from the Stateof New Jersey, and former active and retired members who have elected to participate under the rules ofCOBRA. The State of New Jersey provides contributions for State employees through State appropriations.These appropriations are distributed to the PDP on a monthly basis.

The State made a contribution of $1.7 billion, including administrative revenue of $3.9 million, for fiscal year2013.

Chapter 103, P.L. 2007 implemented changes to SHBP and established an employee contribution of 1.5%of the employee’s base salary for State employees, effective July 1, 2007.

Chapter 2, P.L. 2010, effective May 21, 2010, requires a minimum contribution of 1.5% of base salarytoward the cost of health care benefits coverage by all active public employees. Employees of the State,local governments, and boards of education who become a member of a State or locally administeredretirement system on or after the law’s effective date would be required to pay in retirement 1.5% of theirpension benefit toward the cost of health care coverage under the SHBP.




June 30, 2013

Chapter 78, P.L. 2011, effective June 28, 2011, established new employee contribution requirementstowards the cost of employer provided health benefit coverage. Employees are required to contribute a cer-tain percentage of the cost of coverage. The rate of contribution is determined based on the employee’sannual salary and the selected level of coverage. The increased employee contributions will be phased-inover a four-year period for those employed prior to Chapter 78’s effective date with a minimum contributionrequired to be at least 1.5% of salary. For those employed on or after June 28, 2011, the four-year phase-in does not apply, and contributions based on the full percentage rate of contribution are required. UnderChapter 78, certain future retirees eligible for state paid health care coverage at retirement are alsorequired to pay a percentage of the cost of their medical coverage determined on the basis of their annu-al retirement benefit.

Contribution Requirements – SHBP – Local (including PDP – Local)

Contributions to pay for the health premiums of participating employees in the SHBP – Local are collectedfrom the State of New Jersey, participating local employers, active members and retired members. Localemployer payments and active and retired member contributions are generally received on a monthly basis.

Contributions to pay for the premiums of participating employees in the PDP are collected from participat-ing local employers, and former active and retired members who have elected to participate under the rulesof COBRA. Local employer payments as well as COBRA contributions are also received on a monthlybasis.

Local employers participating in the SHBP – Local made a contribution of $1.1 billion, including adminis-trative revenue of $2.1 million, for fiscal year 2013.


Chapter 78, P.L. 2011, effective June 28, 2011, established new employee contribution requirementstowards the cost of employer provided health benefit coverage. Employees are required to contribute a cer-tain percentage of the cost of coverage. The rate of contribution is determined based on the employee’sannual salary and the selected level of coverage. The increased employee contributions will be phased inover a four-year period for those employed prior to Chapter 78’s effective date with a minimum contributionrequired to be at least 1.5% of salary. For those employed on or after June 28, 2011, the four-year phase-in does not apply, and contributions based on the full percentage rate of contribution are required. UnderChapter 78, certain future retirees eligible for state-paid health care coverage at retirement are alsorequired to pay a percentage of the cost of their medical coverage determined on the basis of their annu-al retirement benefit.

Contribution Requirements – SHBP – Education (including PDP – Education)

Contributions to pay for the health premiums of participating employees in the SHBP – Education are collect-ed from the State of New Jersey, participating local employers, active members and retired members. Localemployer payments and active and retired member contributions are generally received on a monthly basis.

Contributions to pay for the premiums of participating employees in the PDP are collected from participatinglocal employers, and former active and retired members who have elected to participate under the rules ofCOBRA. Local employer payments as well as COBRA contributions are also received on a monthly basis.




June 30, 2013


Local employers participating in the SHBP – Education made a contribution of $2.3 billion, including admin-istrative revenue of $4.9 million, for fiscal year 2013.


Chapter 78, P.L. 2011, effective June 28, 2011, established new employee contribution requirementstowards the cost of employer provided health benefit coverage. Employees are required to contribute a cer-tain percentage of the cost of coverage. The rate of contribution is determined based on the employee’sannual salary and the selected level of coverage. The increased employee contributions will be phased inover a four-year period for those employed prior to Chapter 78’s effective date with a minimum contributionrequired to be at least 1.5% of salary. For those employed on or after June 28, 2011, the four-year phase-in does not apply, and contributions based on the full percentage rate of contribution are required. UnderChapter 78, certain future retirees eligible for state-paid health care coverage at retirement are alsorequired to pay a percentage of the cost of their medical coverage determined on the basis of their annu-al retirement benefit.

Contribution Requirements – NJSEDCP

Participants may defer between 1% and 100% of their salary and less any IRC Section 414(h) reductions or$17.5 thousand annually. Under the limited “catch-up” provision, a participant may be eligible to defer up toa maximum of twice the annual maximum in the three years immediately preceding the retirement age atwhich no reduction in benefits would be applicable. The employer does not make contributions to the Plan.

Contribution Requirements – DCRP

The DCRP was established for elected and certain appointed officials by Chapter 92, P.L. 2007, effectiveJuly 1, 2007. State and local government employers contribute 3% of the employees’ base salary. Activemembers contribute 5.5% of base salary.

Chapter 103, P.L. 2007, effective July 1, 2007, imposed an annual maximum wage contribution base(equivalent to the annual maximum wage base for Social Security deductions) to new employees (Tier 2)of the TPAF and the PERS. This provision was extended by Chapter 1, P.L. 2010, effective May 21, 2010,to new employees (Tier 2) of the PFRS and the SPRS. Based on Chapter 89, P.L. 2008, effective November2, 2008, new employees with a base salary between $5,000 and the current minimum TPAF and PERS Tier3 salary are eligible for participation in the DCRP. Also, based on Chapter 1, P.L. 2010, effective May 21,2010, new employees who would otherwise be eligible to participate in TPAF and PERS (Tier 4 and Tier 5)and do not work the minimum required hours but earn a base salary of at least $5,000 are eligible for par-ticipation in the DCRP.

Contribution Requirements – ABPLTD

The State of New Jersey makes an annual contribution to the ABPLTD, as required, toward the cost of longterm disability benefits which extend beyond the calendar year following the year in which the disability ben-efits commence for those with a benefit commencement date on or after October 1, 1986.

The State made a contribution of $3.0 million for fiscal year 2013.


Contribution Requirements – ABP

Members contribute a mandatory 5% of base or contractual salary that is tax deferred under the Section414(h) provisions of the IRC. Members are also permitted to make voluntary federal tax-deferred contribu-tions under IRC Section 403(b). The State of New Jersey pays the employer contribution for all State andcounty employees participating in the plan. The employer contribution is based on 8% of base or contrac-tual salary. The State of New Jersey is also responsible for the cost of noncontributory life insurance cov-erage and disability coverage for its plan members.

The State made a contribution of $158.1 million, excluding NCGI of $17.6 million and short term disabilityof $3.0 million, for fiscal year 2013.

Contribution Requirements – PAF

The contribution requirements were established by N.J.S.A. 43:3B 4. The State of New Jersey is requiredto make an annual appropriation payment to fund the cost of living increases payable to retirees and ben-eficiaries of retired members in the CPFPF, POPF and CPF. Funding is on a pay-as-you-go basis.

The State made a contribution of $1.1 million for fiscal year 2013.

Contribution Requirements – DEP – State and Local

Contributions to pay for the premiums of participating employees in the Dental Expense Program Fund arecollected from the State of New Jersey, local governmental and educational employers, active employees,and former and retired members who have elected to participate under the rules of COBRA. The cost ofthe premiums is shared by the State of New Jersey and active State employees. Former and retiredemployees who have chosen to participate under the rules of COBRA pay the full cost of the premium. Theemployers are billed for the full cost of coverage. The State of New Jersey provides contributions throughState appropriations.These appropriations are distributed to the DEP on a biweekly and monthly basis.Theactive member share of the cost of premiums, which is included in the billing to the employers, is paid tothe State on a biweekly and monthly basis. Members participating under COBRA remit their payments ona monthly basis. Retirees pay 100% of the overall dental cost.

The State made a contribution of $33.6 million, excluding administrative and other revenue of $24.5 thou-sand, for fiscal year 2013. The local contribution was $3.5 million for fiscal year 2013.


June 30, 2013



(6) VESTING AND BENEFITS

Vesting and Benefit Provisions - JRS

The vesting and benefit provisions are set by N.J.S.A. 43:6A. The JRS provides retirement benefits as well asdeath and disability benefits. Retirement benefits for age and years of service are as follows:


June 30, 2013

AgeYears of

Judicial Service

Benefit as a Percentage of Final Salary

70 at least 10 75%

65-69 at least 15 75%

60-64 at least 20 75%

AgeYears of

Judicial ServiceYears of Public and

Judicial Service

Benefit as a Percentage of Final Salary

65 5 15 50%

60 5 20 50%

Retirement is mandatory at age 70. Early retirement benefits are available with 5 years of judicial serviceplus 25 years in the aggregate of public service with the benefit determined to be 2% of final salary plus1% of final salary for each year in excess of 25 years. An actuarial reduction will be made if retirement isbefore age 60.

Retirement benefits are also available at age 60 with five years of judicial service plus 15 years in theaggregate of public service, or at age 60 while serving as a judge with the benefit determined to be 2% offinal salary, as defined, for each year of public service up to 25 years plus 1% of final salary for each yearin excess of 25 years. Deferred retirement benefits are also available.

Eligible retirees receiving monthly benefits are entitled to cost-of-living adjustment (COLA) increases equalto 60% of the change in the average consumer price index for the calendar year in which the pensionerretired, as compared to the average consumer price index for a twelve month period ending with eachAugust 31st immediately preceding the year in which the adjustment becomes payable. The regular retire-ment allowance is multiplied by the 60% factor as developed and results in the dollar amount of the adjust-ment payable. Retired members become eligible for pension adjustment benefits after 24 months ofretirement. Pursuant to the provisions of Chapter 78, P.L. 2011, COLA increases are suspended for all cur-rent and future retirees of all retirement systems. The law does not reduce any COLA increases that havealready been added to retiree benefits.

Vesting and Benefit Provisions – CPFPF

The vesting and benefit provisions were set by N.J.S.A. 43:16. There are no active members in the CPFPF.



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Vesting and Benefit Provisions – PFRS

The vesting and benefit provisions are set by N.J.S.A. 43:16A. The PFRS provides retirement as well asdeath and disability benefits. All benefits vest after ten years of service, except disability benefits which vestafter four years of service. Retirement benefits for age and service are available at age 55 and are gener-ally determined to be 2% of final compensation for each year of creditable service, as defined, up to 30years plus 1% for each year of service in excess of 30 years. Final compensation equals the compensa-tion for the final year of service prior to retirement. Members may seek special retirement after achieving25 years of creditable service or they may elect deferred retirement after achieving ten years of service, inwhich case benefits would begin at age 55 equal to 2% of final compensation for each year of service. Theannual benefit under special retirement is 65% of the member’s final compensation plus 1% for each yearof creditable service over 25 years but not to exceed 30 years. The maximum allowance is therefore 70%of final compensation. Pursuant to the provisions of Chapter 78, P.L. 2011, the annual benefit under spe-cial retirement for members enrolled after June 28, 2011 (Tier 3 members), is 60% of the member’s finalcompensation plus 1% for each year of creditable service over 25 years but not to exceed 30 years. Themaximum allowance is therefore 65% of final compensation.

Widow/widowers of members retired since December 18, 1967 receive 50% of the retiree’s final compen-sation.

Members are always fully vested for their own contributions. In the case of death before retirement, mem-bers’ beneficiaries are entitled to full payment of members’ contributions providing no survivor death ben-efits are payable.

Eligible retirees receiving monthly benefits are entitled to COLA increases equal to 60% of the change inthe average consumer price index for the calendar year in which the pensioner retired, as compared to theaverage consumer price index for a twelve-month period ending with each August 31st immediately pre-ceding the year in which the adjustment becomes payable. The regular retirement allowance is multipliedby the 60% factor as developed and results in the dollar amount of the adjustment payable. Retired mem-bers become eligible for pension adjustment benefits after 24 months of retirement. The COLA increasesare funded by the retirement system and are included in the annual actuarial calculations of the requiredstate and state-related employer contributions. Pursuant to the provisions of Chapter 78, P.L. 2011, COLAincreases are suspended for all current and future retirees of all retirement systems. The law does notreduce any COLA increases that have already been added to retiree benefits.

Pursuant to Chapter 1, P.L. 2010, for new members of PFRS hired after May 21, 2010 (Tier 2 members),this law capped the maximum compensation that can be used to calculate a pension from these plans atthe annual wage contribution base for Social Security, and required the pension to be calculated using athree year average annual compensation instead of the last year’s salary.

Vesting and Benefit Provisions – POPF

The vesting and benefit provisions were set by N.J.S.A. 43:7. There are no active members in the POPF.

Vesting and Benefit Provisions – PERS

The vesting and benefit provisions are set by N.J.S.A. 43:15A. The PERS provides retirement, death anddisability benefits. All benefits vest after eight (legislators) to ten years of service, except for medical ben-efits, which vest after 25 years of service or under the disability provisions of the PERS.

For Tier 1 members, retirement benefits for age and service are available at age 60 and are generally deter-mined to be 1/55 of final average salary for each year of service credit, as defined. Final average salary

(6) VESTING AND BENEFITS, Continued


equals the average salary for the final three years of service prior to retirement (or highest three fiscalyears’ compensation if other than the final three years). Members may seek early retirement after achiev-ing 25 years service credit, as defined, or they may elect deferred retirement after achieving eight to tenyears of service credit, in which case benefits would begin the first day of the month after the memberattains normal retirement age.

Members are always fully vested for their own contributions and, after three years of service credit, becomevested for earnings on their contributions at 2% per annum. In the case of death before retirement, mem-bers’ beneficiaries are entitled to full interest credited to the members’ accounts.

Eligible retirees receiving monthly benefits are entitled to COLA increases equal to 60% of the change inthe average consumer price index for the calendar year in which the pensioner retired, as compared to theaverage consumer price index for a twelve-month period ending with each August 31st immediately pre-ceding the year in which the adjustment becomes payable. The regular retirement allowance is multipliedby the 60% factor as developed and results in the dollar amount of the adjustment payable. Retired mem-bers become eligible for pension adjustment benefits after 24 months of retirement. The COLA increasesare funded by the retirement system and are included in the annual actuarial calculations of the requiredstate and state-related employer contributions. Pursuant to the provisions of Chapter 78, P.L. 2011, COLAincreases are suspended for all current and future retirees of all retirement systems. The law does notreduce any COLA increases that have already been added to retiree benefits.

Chapter 103, P.L. 2007 amended the early retirement reduction formula for members hired on or after July1, 2007 and prior to November 2, 2008 (Tier 2 members) and retiring with 25 years of service to be reducedby 1% for every year between age 55 and 60, plus 3% for every year under age 55. Also, this law provid-ed that the amount of compensation for Tier 2 members used for employer and member contributions andbenefits under the PERS cannot exceed the annual maximum wage contribution base for Social Security,pursuant to the Federal Insurance Contributions Act.

Chapter 89, P.L. 2008 increased the PERS eligibility age for unreduced benefits from age 60 to age 62 formembers hired on or after November 2, 2008 and on or before May 21, 2010 (Tier 3 members). It alsoincreased the minimum annual compensation required for membership eligibility for new Tier 3 membersfrom $1,500 to $7,500 with annual adjustments ($7,900 in 2012 and $8,000 in 2013) in addition to amend-ing the early retirement reduction formula for Tier 3 members retiring with 25 years of service to 1% forevery year between age 55 and 62, plus 3% for every year under age 55.

Chapter 1, P.L. 2010, effective May 21, 2010, changed the membership eligibility criteria for new membersof PERS hired after May 21, 2010 (Tier 4 and Tier 5 members) from the amount of annual compensationto the number of hours worked weekly. Also, it returned the benefit multiplier for these members of PERSto 1/60 from 1/55, and it provided that the retirement allowance for these members be calculated using theaverage annual compensation for the last five years of service instead of the last three years of service.Tier 4 and Tier 5 members of PERS no longer receive pension service credit from more than one employ-er. Pension service credit is earned for the highest paid position only. This law also closed the ProsecutorsPart of the PERS to new members.

Chapter 3, P.L. 2010, effective May 21, 2010, replaced the accidental and ordinary disability retirement forTier 4 and Tier 5 members of the PERS with disability insurance coverage similar to that provided by theState to individuals enrolled in the State’s Defined Contribution Retirement Program.


June 30, 2013




June 30, 2013

Chapter 78, P.L. 2011, provides that new members of PERS hired on or after June 28, 2011 (Tier 5 mem-bers) need 30 years of creditable service and age 65 for receipt of the early retirement benefit without areduction of 1/4 of 1% for each month that the member is under age 65. Tier 5 members are eligible for aservice retirement benefit at age 65.

Vesting and Benefit Provisions – SPRS

The vesting and benefit provisions are set by N.J.S.A. 53:5A. The SPRS provides retirement as well asdeath and disability benefits. All benefits vest after ten years of service, as defined. Retirement benefits areavailable after 20 years of service as defined at any age with mandatory retirement at age 55. The retire-ment benefit is based upon final compensation, which for Tier 1 members is defined as salary plus main-tenance allowance during the last 12 months prior to retirement, and is a life annuity equal to the greaterof the following: (a) 50% of final compensation; (b) for members retiring due to mandatory retirement, 50%of final compensation, plus 3% for each year of service in excess of 20 years up to 25 years to a maximumof 65% of final compensation; or (c) for members retiring with 25 or more years of service, 65% of finalcompensation, plus 1% for each year of service in excess of 25 years, to a maximum of 70% of final com-pensation. Members may elect deferred retirement after ten years of service in which case benefits in theform of life annuity would begin at age 55 equal to 2% of final compensation for each year of service up to25 years with 1% for every year over 25 years.

Members are always fully vested for their own contributions.

Eligible retirees receiving monthly benefits are entitled to COLA increases equal to 60% of the change inthe average consumer price index for the calendar year in which the pensioner retired, as compared to theaverage consumer price index for a twelve-month period ending with each August 31st immediately pre-ceding the year in which the adjustment becomes payable. The regular retirement allowance is multipliedby the 60% factor as developed and results in the dollar amount of the adjustment payable. Retired mem-bers become eligible for pension adjustment benefits after 24 months of retirement. Pursuant to the provi-sions of Chapter 78, P.L. 2011, COLA increases are suspended for all current and future retirees of allretirement systems. The law does not reduce any COLA increases that have already been added to retireebenefits.

Pursuant to Chapter 1, P.L. 2010 for new members of SPRS hired after May 21, 2010 (Tier 2 members),this law capped the maximum compensation that can be used to calculate a pension from these plans atthe annual wage contribution base for Social Security, and requires the pension to be calculated using athree year average annual compensation instead of the last year’s salary.

Vesting and Benefit Provisions – TPAF

The vesting and benefit provisions are set by N.J.S.A. 18A:66. The TPAF provides retirement, death anddisability benefits. All benefits vest after ten years of service, except for medical benefits, which vest after25 years of service or under the disability provisions of the TPAF.

For Tier 1 members, retirement benefits for age and service are available at age 60 and are generally deter-mined to be 1/55 of final average salary for each year of service credit, as defined. Final average salaryequals the average salary for the final three years of service prior to retirement (or highest three fiscalyears’ compensation if other than the final three years). Members may seek early retirement after achiev-ing 25 years service credit, as defined, or they may elect deferred retirement after achieving ten years ofservice credit, in which case benefits would begin the first day of the month after the member attains nor-mal retirement age.




June 30, 2013

Members are always fully vested for their own contributions and, after three years of service credit, becomevested for 2% of related interest earned on the contributions. In the case of death before retirement, mem-bers’ beneficiaries are entitled to full interest credited to the members’ accounts.

Eligible retirees receiving monthly benefits are entitled to COLA increases equal to 60% of the change inthe average consumer price index for the calendar year in which the pensioner retired, as compared to theaverage consumer price index for a twelve-month period ending with each August 31st immediately pre-ceding the year in which the adjustment becomes payable. The regular retirement allowance is multipliedby the 60% factor as developed and results in a dollar amount of the adjustment payable. Retired membersbecome eligible for pension adjustment benefits after 24 months of retirement. Pursuant to the provisionsof Chapter 78, P.L. 2011, COLA increases are suspended for all current and future retirees of all retirementsystems. The law does not reduce any COLA increases that have already been added to retiree benefits.

Chapter 103, P.L. 2007 amended the early retirement reduction formula for members hired on or after July1, 2007 and retiring with 25 years of service to be reduced by 1% for every year between age 55 and 60,plus 3% for every year under age 55. Also, this law provided that for members hired on or after July 1, 2007,the amount of compensation used for employer and member contributions and benefits under the TPAFcannot exceed the annual maximum wage contribution base for Social Security, pursuant to the FederalInsurance Contributions Act.

Chapter 89, P.L. 2008 increased the TPAF eligibility age for unreduced benefits from age 60 to age 62 formembers hired on or after November 2, 2008 and on or before May 21, 2010 (Tier 3 members). It alsoincreased the minimum annual compensation required for membership eligibility for new Tier 3 membersfrom $1,500 to $7,500 with annual adjustments ($7,900 in 2012 and $8,000 in 2013) in addition to amend-ing the early retirement reduction formula for Tier 3 members retiring with 25 years of service to 1% forevery year between age 55 and 62, plus 3% for every year under age 55.

Chapter 1, P.L. 2010, effective May 21, 2010, changed the membership eligibility criteria for new membersof TPAF from the amount of annual compensation to the number of hours worked weekly. Also, it returnedthe benefit multiplier for new members of TPAF to 1/60 from 1/55, and it provided that new members ofTPAF have the retirement allowance calculated using the average annual compensation for the last fiveyears of service instead of the last three years of service. New members of TPAF no longer receive pen-sion service credit from more than one employer. Pension service credit is earned for the highest paid posi-tion only.

Chapter 3, P.L. 2010, effective May 21, 2010, replaced the accidental and ordinary disability retirement fornew members of the TPAF with disability insurance coverage similar to that provided by the State to indi-viduals enrolled in the State’s Defined Contribution Retirement Program.

Chapter 78, P.L. 2011, provides that new members of TPAF hired on or after June 28, 2011 (Tier 5 mem-bers) need 30 years of creditable service and age 65 for receipt of the early retirement benefit without areduction of 1/4 of 1% for each month that the member is under age 65. Tier 5 members are eligible for aservice retirement benefit at age 65.

Vesting and Benefit Provisions – SACT

Upon retirement, a participant receives a life annuity benefit or may elect to receive a benefit paid as a sin-gle cash payment or various forms of monthly annuity payments with a beneficiary provision based on thevalue of the participant’s account in the month of retirement. Upon the death of a participant, the designat-ed beneficiary may elect to receive a lump sum equal to the account value or an annuity under any of thesettlement options which a retiree could elect under the Trust. Upon termination of employment and with-




June 30, 2013

drawal from the basic retirement systems, a participant must also withdraw his account under the Trust asa lump-sum settlement.

Benefit Provisions – CPF

Benefits are payable under various State of New Jersey acts in an amount equal to one half of the com-pensation received by the participant for his/her service. In the case of Disabled Veterans’ Pensions andSurviving Spouses, the amount is $62.50 per month.

Vesting and Benefit Provisions – NJSEDCP

Assets in the Plan are held in trust for the exclusive benefit of Plan members and their beneficiaries inaccordance with GASB Statement No. 32, Accounting and Financial Reporting for Internal Revenue CodeSection 457 Deferred Compensation Plans. Plan members are fully vested for the current valuation of theiraccount from the date of enrollment in the Plan. Benefits are payable upon separation from service with theState of New Jersey.

Vesting and Benefit Provisions – DCRP

Eligible members are provided with a defined contribution retirement plan intended to qualify for favorableFederal income tax treatment under IRC Section 401(a), a noncontributory group life insurance plan and anoncontributory group disability benefit plan. A participant’s interest in that portion of his or her defined con-tribution retirement plan account attributable to employee contributions shall immediately become and shallat all times remain fully vested and nonforfeitable. A participant’s interest in that portion of his or her definedcontribution retirement plan account attributable to employer contributions shall be vested and nonfor-feitable on the date the participant commences the second year of employment or upon his or her attain-ment, while employed by an employer, of age 65, whichever occurs first.

Benefit Provisions – ABPLTD

Members who are totally disabled due to an occupational or nonoccupational condition are eligible toreceive a regular monthly benefit equal to 60% of the base salary earned over the twelve month period pre-ceding the onset of the disability. The long-term disability benefits continue until such time as the memberretires or attains the age of 70, whichever comes first.

Vesting and Benefit Provisions – SHBP – State (including PDP – State)

The Program provides medical coverage to qualified active and retired participants. Under Chapter 136,P.L. 1977, the State of New Jersey pays for the health insurance coverage of all enrolled retired Stateemployees (regardless of age) whose pensions are based upon 25 years or more of credited service or adisability retirement regardless of years of service. Retirees who are not eligible for state paid health cov-erage at retirement can continue in the program by paying the cost of the insurance for themselves andtheir covered dependents. The PDP was established in December 1974, under N.J.S.A. 52:14 17.29 to pro-vide coverage to employees and their eligible dependents for drugs which under federal or State law maybe dispensed only upon a prescription written by a physician. State employees are eligible for PDP cover-age after 60 days of employment.

Vesting and Benefit Provisions – SHBP – Local (including PDP – Local)

The Program provides medical coverage to qualified local active and retired participants. Partially fundedbenefits are also provided to local police officers and firefighters who retire with 25 years of service (or ondisability) from an employer who does not provide coverage under the provisions of Chapter 330, P.L. 1997.Also, local employees are eligible for the PDP coverage after 60 days of employment.




June 30, 2013

Vesting and Benefit Provisions – SHBP – Education (including PDP – Education)

The program provides medical coverage to qualified local education active and retired participants.Members of the TPAF who retire from a board of education or county college with 25 years of service oron a disability retirement receive state paid post retirement medical coverage. Under the provisions ofChapter 126, P.L. 1992, the program also provides state paid coverage to members of the PERS and ABPwho retire from a board of education or county college with 25 years of service or on a disability retirementif the member’s employer does not provide this coverage. Certain local participating employers also pro-vide post retirement medical coverage to their employees. Retirees who are not eligible for state paid healthcoverage at retirement can continue in the program if their employer participates in this program or if theyare participating in the health benefits plan of their former employer and are enrolled in Medicare Parts Aand B by paying the cost of the insurance for themselves and their covered dependents. Also, educationemployees are eligible for the PDP coverage after 60 days of employment.

Vesting and Benefit Provisions – ABP

ABP provides retirement benefits, disability benefits, and group life insurance benefits to eligible partici-pants. Retirement benefits are payable upon separation from service with no age or service requirements.However, distributions under age 55 are limited to employee contributions and accumulations. The remain-ing employer’s contributions and earnings are available for distribution upon attaining age 55. New ABPparticipants are vested after one year of service. Participants are immediately vested if the participant hasan existing retirement account containing employer and employee contributions based on employment inpublic education, or is an active or vested member of a federal or state retirement system.

Benefit Provisions – PAF

The Pension Adjustment Fund covers eligible retirees and survivors of CPFPF, POPF and CPF. Eligibleretirees and/or survivors are those who have been retired at least 24 months.

Those eligible for benefits are entitled to COLA increases equal to 60% of the change in the average con-sumer price index for the calendar year in which the pensioner retired, as compared to the average con-sumer price index for a twelve month period ending with each August 31st immediately preceding the yearin which the adjustment becomes payable. The regular retirement allowance is multiplied by the 60% fac-tor as developed and results in a dollar amount of the adjustment payable. Retired members become eli-gible for pension adjustment benefits after 24 months of retirement.

Chapter 4, P.L. 2001 provided increased benefits to certain members of the Consolidated Police andFiremen’s Pension Fund who retired prior to December 29, 1989 with at least 25 years of creditable serv-ice. The benefit increase is effective November 1, 2001. The maximum amount of the increase was 5% ofthe retiree’s final compensation. For those with 30 or more years of service, the total pension benefit wouldincrease from 65% to 70% of final compensation.

As a result of this legislation, cost-of-living benefits payable to eligible retirees also increased. The State,not the local municipalities, is responsible for these costs.

Pursuant to the provisions of Chapter 78, P.L. 2011, COLA increases are suspended for all current andfuture retirees of all retirement systems. The law does not reduce any COLA increases that have alreadybeen added to retiree benefits.

Benefit Provisions – DEP – State and Local

The Program provides coverage to employees and their eligible dependents for dental services performedby a qualified dentist. Employees are eligible for coverage after 60 days of employment.




June 30, 2013

(7) FUNDS

The Funds maintain the following legally required funds as follows (amounts indicated in parenthesis representnet position held in trust for the respective fund as indicated):

Members’ Annuity Savings Fund and Accumulative Interest Fund – JRS ($46,650,937); TPAF($10,145,584,757); PERS ($12,177,319,873); PFRS ($3,319,977,601); SPRS ($180,019,772)

The Members’ Annuity Savings Fund (ASF) is credited with all contributions made by active members of theFunds. Interest earned on member contributions is credited to the Accumulative Interest Fund, which is appliedto TPAF, PERS, and JRS. Member withdrawals are paid out of these Funds.

Contingent Reserve Fund – JRS ($-27,351,176); TPAF ($-17,265,872,607); PERS ($-9,998,792,588);SPRS ($783,302,755)

The Contingent Reserve Fund is credited with the contributions of contributing employers. Interest earnings,after crediting the Accumulative Interest Fund and Retirement Reserve Fund, as required, are credited to thisaccount. Additionally, payments for administrative and miscellaneous expenses are made from this Fund.

Retirement Reserve Fund – JRS ($206,531,056);TPAF ($33,042,421,138); PERS ($25,032,882,018); PFRS($20,044,311,736); SPRS ($825,303,195)

The Retirement Reserve Fund is the account from which retirement benefits including COLA adjustments arepaid. Upon retirement of a member, accumulated contributions together with accumulated interest are trans-ferred to the Retirement Reserve Fund from the Members’ ASF and Accumulative Interest Fund. Any addition-al reserves needed to fund the balance of the retirement benefit are transferred from the Contingent ReserveFund or Pension Accumulation Fund. Annually, interest as determined by the State Treasurer (7.95% for fiscalyear 2013 and 8.25% for fiscal year 2012) is credited to the Retirement Reserve Fund.

Retirement Reserve Fund – POPF ($8,171,919)

The Retirement Reserve Fund is credited with State of New Jersey contributions and investment income. Inaddition, all benefits are paid from this account.

Contributory Group Insurance Premium Fund – TPAF ($137,239,453); PERS ($384,313,550)

The Contributory Group Insurance Premium Fund represents the accumulation of member group life insurancecontributions in excess of premiums disbursed to the insurance carrier since the inception of the contributorydeath benefit program plus reserves held by the insurance carriers. Members are required by statute to partic-ipate in the contributory group life insurance plan in the first year of membership and may cancel the contribu-tory coverage thereafter. The current contribution rate for active members is 0.4 of 1% of salary for TPAF and0.5 of 1% of salary for PERS, as defined.

Non-Contributory Group Insurance Premium Fund – PERS – Local ($44,579,485); PFRS – Local($7,779,399)

The Non-Contributory Group Insurance Premium Fund represents the accumulation of employer group lifeinsurance contributions in excess of premiums disbursed to the insurance carrier since the inception of the non-contributory death benefit program plus reserves held by the insurance carrier. Members are eligible by statutefor the noncontributory group life insurance plan in the first year of membership. TPAF, PERS – State, andPFRS – State show a zero balance as these premium expenses are funded on a monthly basis.

Pension Accumulation Fund – PFRS ($-867,131,191)

The Pension Accumulation Fund is credited with the contributions of the State of New Jersey and other employ-ers. Interest earnings, after crediting the Retirement Reserve Fund, as required, are credited to this account.



June 30, 2013

Additionally, payments for administrative and miscellaneous expenses are made from this Fund.

Pension Reserve Fund – CPFPF ($4,353,816)

The Pension Reserve Fund is credited with State of New Jersey contributions and investment income.

Reserve Fund – Alternate Benefit – Long Term Disability ($1,646,696)

The fund balance of the ABPLTD is available for future payments to participants.

Benefit Enhancement Reserve Fund – PERS – Local ($279,733,836)

The Benefit Enhancement Reserve Fund is a special reserve fund from which the required normal contribu-tions to provide benefit increases under Chapter 353, P.L. 2001 and Chapter 133, P.L. 2001 will be charged.The fund was established in 2002 and credited with excess assets equivalent to member contributions for fis-cal years 2000 and 2001 by transferring reserves in the Contingent Reserve Fund to the Benefit EnhancementFund. Additional transfers will be made, as required, to maintain a fund balance equal to the present value ofexpected additional normal contributions due to the increased benefits.

Reserve Fund – SHBP – State (Including PDP – State) ($-153,167,314)

The State uses this fund to cover claims payments.

Reserve Fund – SHBP – Local (Including PDP – Local) ($225,182,796)

The net position of the SHBP – Local are available to pay claims of future periods. These reserves are main-tained by the fund to stabilize rates and to meet unexpected increase in claims.

Reserve Fund – SHBP – Education (Including PDP – Education) ($223,551,953)

The net position of the SHBP – Education are available to pay claims of future periods. These reserves aremaintained by the fund to stabilize rates and to meet unexpected increase in claims.

(7) FUNDS, Continued



June 30, 2013

(7) FUNDS, Continued

Various reserve fund net position balances as of June 30, 2013 as described previously are as follows:

(8) CONTINGENCIES

The Division is a party to various legal actions arising in the ordinary course of its operations. While it isnot feasible to predict the ultimate outcome of these actions, it is the opinion of management that the res-olution of these matters will not have a material adverse effect on the Division’s financial statements.

Pension Trust Funds

Health Benefit Program Funds

Members’ Annuity Savings Fund and Accumulative Interest Fund $25,869,552,940 —

Contingent Reserve Fund (26,508,713,616) —

Retirement Reserve Fund 79,159,621,062 —

Contributory Group Insurance Premium Fund 521,553,003 —

Non-Contributory Group Insurance Premium Fund 52,358,884 —

Pension Accumulation Fund (867,131,191) —

Pension Reserve Fund 4,353,816 —

Reserve Fund 1,646,696 295,567,435

Benefit Enhancement Reserve Fund 279,733,836 —

Variable Accumulation Reserve Accounts (SACT/DCP/DCRP) 3,090,525,190 —

Variable Benefits Reserve Account (SACT) 29,599,453 —

Total $81,633,100,072 295,567,435



Required Supplementary Information Schedule of Funding Progress

(Unaudited — See accompanying independent auditor’s report)

UNFUNDED(OVERFUNDED)

ACTUARIALUNFUNDED ACCRUED

(OVERFUNDED) LIABILITY AS AACTUARIAL ACTUARIAL ACTUARIAL PERCENTAGE

ACTUARIAL VALUE OF ACCRUED ACCRUED FUNDED COVERED OF COVEREDVALUATION ASSETS LIABILITY LIABILITY RATIO PAYROLL PAYROLL

DATE (a) (b) (b - a) (a / b) (c) ((b - a) / c)

JUDICIAL RETIREMENT SYSTEM (JRS)

July 1, 2007 $ 379,364,939 524,970,330 145,605,391 72.3% $63,144,685 230.6%July 1, 2008 380,964,713 553,284,647 172,319,934 68.9 67,159,516 256.6July 1, 2009 354,399,646 594,043,375 239,643,729 59.7 70,133,372 341.7July 1, 2010 329,030,387 554,540,403 225,510,016 59.3 71,746,413 314.3July 1, 2011 305,245,844 585,700,787 280,454,943 52.1 67,437,125 415.9July 1, 2012 278,548,470 605,180,634 326,632,164 46.0 67,497,660 483.9

CONSOLIDATED POLICE AND FIREMEN’S PENSION FUND (CPFPF)

July 1, 2007 $ 19,336,247 21,090,186 1,753,939 91.7% N/A N/AJuly 1, 2008 15,705,984 17,319,488 1,613,504 90.7 N/A N/AJuly 1, 2009 13,515,949 14,024,132 508,183 96.4 N/A N/AJuly 1, 2010 10,632,228 11,824,904 1,192,676 89.9 N/A N/AJuly 1, 2011 8,126,894 9,179,981 1,053,087 88.5 N/A N/AJuly 1, 2012 6,282,439 8,026,421 1,743,982 78.3 N/A N/A

POLICE AND FIREMEN’S RETIREMENT SYSTEM (PFRS)

StateJuly 1, 2007 $ 2,215,697,407 3,426,631,813 1,210,934,406 64.7% $527,556,519 229.5%July 1, 2008 2,316,017,361 3,749,118,910 1,433,101,549 61.8 527,495,741 271.7July 1, 2009 2,254,766,935 3,993,259,480 1,738,492,545 56.5 525,862,047 330.6July 1, 2010 2,190,654,958 3,672,361,258 1,481,706,300 59.7 530,747,536 279.2July 1, 2011 2,143,492,414 3,926,525,679 1,783,033,265 54.6 526,058,270 338.9July 1, 2012 2,074,049,503 4,026,954,882 1,952,905,379 51.5 517,324,007 377.5

LocalJuly 1, 2007 $19,500,229,156 24,562,195,443 5,061,966,287 79.4% $2,932,283,180 172.6%July 1, 2008 20,437,541,909 26,871,106,532 6,433,564,623 76.1 3,068,758,436 209.6July 1, 2009 20,724,453,343 28,448,841,765 7,724,388,422 72.8 3,147,812,476 245.4July 1, 2010 20,367,865,987 25,601,998,126 5,234,132,139 79.6 3,189,786,833 164.1July 1, 2011 21,027,839,958 26,978,632,188 5,950,792,230 77.9 3,123,358,027 190.5July 1, 2012 21,500,537,273 27,705,168,437 6,204,631,164 77.6 3,138,894,566 197.7

PRISON OFFICERS’ PENSION FUND (POPF)

July 1, 2007 13,499,361 7,378,386 (6,120,975) 183.0% N/A N/AJuly 1, 2008 12,890,441 6,789,017 (6,101,424) 189.9 N/A N/AJuly 1, 2009 11,986,919 6,136,441 (5,850,478) 195.3 N/A N/AJuly 1, 2010 11,018,367 5,635,024 (5,383,343) 195.5 N/A N/AJuly 1, 2011 9,997,650 5,096,792 (4,900,858) 196.2 N/A N/AJuly 1, 2012 9,044,236 5,395,505 (3,648,731) 167.6 N/A N/A

Schedule 1








ACTUARIAL VALUE OF ACCRUED ACCRUED FUNDED COVERED OF COVEREDVALUATION ASSETS LIABILITY LIABILITY RATIO PAYROLL PAYROLL

DATE (a) (b) (b - a) (a / b) (c) ((b - a) / c)

PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (PERS)

StateJuly 1, 2007 $11,024,255,608 16,028,875,601 5,004,619,993 68.8% $4,434,933,181 112.8%July 1, 2008 11,200,668,671 17,072,702,680 5,872,034,009 65.6 4,609,019,779 127.4July 1, 2009 10,692,585,100 18,947,194,579 8,254,609,479 56.4 4,627,092,235 178.4July 1, 2010 10,252,640,127 17,429,178,021 7,176,537,894 58.8 4,564,850,886 157.2July 1, 2011 9,938,069,705 18,290,829,021 8,352,759,316 54.3 4,608,926,826 181.2July 1, 2012 9,512,074,226 19,383,584,639 9,871,510,413 49.1 4,570,958,470 216.0

LocalJuly 1, 2007 $17,690,520,507 21,764,214,593 4,073,694,086 81.3% $6,983,534,635 58.3%July 1, 2008 18,217,749,414 23,173,183,973 4,955,434,559 78.6 7,206,781,046 68.8July 1, 2009 18,165,648,669 25,523,208,576 7,357,559,907 71.2 7,368,354,906 99.9July 1, 2010 18,481,952,370 23,918,658,044 5,436,705,674 77.3 7,416,503,897 73.3July 1, 2011 18,996,299,489 24,679,095,575 5,682,796,086 77.0 7,000,115,900 81.2July 1, 2012 19,374,461,309 26,009,038,341 6,634,577,032 74.5 6,862,133,165 96.7

STATE POLICE RETIREMENT SYSTEM (SPRS)

July 1, 2007 $ 2,066,754,160 2,485,649,230 418,895,070 83.1% $275,301,995 152.2%July 1, 2008 2,127,263,509 2,609,164,869 481,901,360 81.5 281,087,566 171.4July 1, 2009 2,063,962,877 2,825,455,568 761,492,691 73.0 287,267,502 265.1July 1, 2010 2,019,350,048 2,497,094,137 477,744,089 80.9 289,980,657 164.8July 1, 2011 2,002,813,881 2,581,950,846 579,136,965 77.6 275,219,752 210.4July 1, 2012 1,969,806,447 2,767,768,813 797,962,366 71.2 283,219,927 281.7

TEACHERS’ PENSION AND ANNUITY FUND (TPAF)

July 1, 2007 $36,714,578,745 49,161,247,363 12,446,668,618 74.7% $9,077,628,813 137.1%July 1, 2008 36,664,627,629 51,754,814,521 15,090,186,892 70.8 9,419,083,203 160.2July 1, 2009 34,838,211,259 54,576,061,024 19,737,849,765 63.8 9,747,020,060 202.5July 1, 2010 33,265,326,627 49,543,347,849 16,278,021,222 67.1 10,025,401,658 162.4July 1, 2011 32,289,888,420 51,406,540,290 19,116,651,870 62.8 9,682,318,739 197.4July 1, 2012 31,214,185,683 52,637,346,396 21,423,160,713 59.3 9,779,212,916 219.1

Schedule 1, Continued





Schedule 1, continued

* Required disclosure at adoption of standard. Covered payroll not available for the initial analysis.




ACTUARIAL VALUE OF ACCRUED ACCRUED FUNDED COVERED OF COVEREDVALUATION ASSETS LIABILITY LIABILITY RATIO PAYROLL* PAYROLL*

DATE (a) (b) (b - a) (a / b) (c) ((b - a) / c)

STATE HEALTH BENEFIT PROGRAM — STATEJuly 1, 2008 $ — 19,850,900,000 19,850,900,000 —% $7,163,803,681 277.1%July 1, 2009 — 20,461,400,000 20,461,400,000 — 7,493,198,538 273.1July 1, 2010 — 21,090,400,000 21,090,400,000 — 7,424,794,315 284.1July 1, 2011 — 18,077,800,000 18,077,800,000 — 7,491,835,889 241.3July 1, 2012 — 19,319,700,000 19,319,700,000 — 7,695,193,894 251.1

STATE HEALTH BENEFIT PROGRAM — LOCALJuly 1, 2008 $ — 8,840,500,000 8,840,500,000 —% $2,411,700,000 366.6%July 1, 2009 — 10,010,400,000 10,010,400,000 — 2,607,200,000 384.0July 1, 2010 — 12,089,800,000 12,089,800,000 — 2,844,100,000 425.1July 1, 2011 — 11,127,000,000 11,127,000,000 — 2,831,000,000 393.0July 1, 2012 — 12,378,100,000 12,378,100,000 — 2,937,000,000 421.4

STATE HEALTH BENEFIT PROGRAM — EDUCATIONJuly 1, 2008 $ — 36,062,600,000 36,062,600,000 —% $13,016,396,319 277.1%July 1, 2009 — 36,321,100,000 36,321,100,000 — 13,301,201,462 273.1July 1, 2010 — 38,191,500,000 38,191,500,000 — 13,445,205,685 284.1July 1, 2011 — 30,871,900,000 30,871,900,000 — 12,794,864,111 241.3July 1, 2012 — 32,182,900,000 32,182,900,000 — 12,818,706,106 251.1



Required Supplementary InformationSchedule of Funding Progress — Additional Actuarial Information(Unaudited — See accompanying independent auditor’s report)


Significant actuarial methods and assumptions used in the most recent 2012 actuarial valuations include thefollowing:

JRS CPFPF

Actuarial cost method Projected unit credit Projected unit creditAsset valuation method 5 year average of market value 5 year average of market valueAmortization method Level dollar, open Level dollar, closedRemaining amortization period 30 years 1 yearActuarial assumptions:

Interest rate 7.90% 2.00%Salary range 2.50% N/ACost-of-living adjustments —% N/A

Valuation date July 1, 2012 July 1, 2012

PFRS POPF

Actuarial cost method Projected unit credit Projected unit creditAsset valuation method 5 year average of market value Market valueAmortization method Level dollar, open Level dollar, closedRemaining amortization period 30 years 1 yearActuarial assumptions:

Interest rate 7.90% 5.00%Salary range 6.01% N/ACost-of-living adjustments —% N/A


PERS SPRS

Actuarial cost method Projected unit credit Projected unit creditAsset valuation method 5 year average of market value 5 year average of market valueAmortization method Level dollar, open Level dollar, openRemaining amortization period 30 years 30 yearsActuarial assumptions:

Interest rate 7.90% 7.90%Salary range 4.22% 3.45%Cost-of-living adjustments —% —%


TPAF

Actuarial cost method Projected unit creditAsset valuation method 5 year average of market valueAmortization method Level dollar, openRemaining amortization period 30 yearsActuarial assumptions:

Interest rate 7.90%Salary range 3.51%Cost-of-living adjustments —%

Valuation date July 1, 2012



Required Supplementary InformationSchedule of Funding Progress — Additional Actuarial Information(Unaudited — See accompanying independent auditor’s report)


Significant actuarial methods and assumptions used in the most recent 2012 actuarial valuations include thefollowing:

State Health Benefit Program Funds

Actuarial cost method Projected unit creditAmortization method Level dollar, openRemaining amortization period 30 yearsActuarial assumptions:

Interest rate 4.50% (assuming no prefunding)Salary range N/ACost-of-living adjustments N/A

Valuation date July 1, 2012

For medical benefits, the healthcare cost trend rate assumption initially is at 8.5% and decreases to a 5.0% long-term trendrate for all medical benefits after 8 years, except for NJ Direct Post-65 whose rate assumption is 5.0% through 8 years. Forperscription drug benefits, the initial healthcare cost assumption is 8.5%, decreasing to a 5.0% long-term trend rate after 8years. For Medicare Part B reimbursement, the healthcare cost trend rate assumption is 5.0% throughout 8 years.


YEAR ANNUALENDED REQUIRED EMPLOYER PERCENTAGE

JUNE 30, CONTRIBUTION CONTRIBUTIONS(1) (4) CONTRIBUTED


2008 $27,171,100(5) 12,913,890(5) 47.5%2009 29,809,782 1,696,843(5) 5.72010 32,540,704 1,032,857(5) 3.22011 38,450,553 651,718 1.72012 42,475,660 5,969,713(5) 14.12013 45,415,467 12,544,372 27.6


2008 $2,388,591 523,000 21.9%2009 1,824,798 1,256,000 68.82010 1,678,690 —(5) —2011 528,714 — —2012 1,240,860 174,000 14.02013 1,095,632 896,883 81.9


State2008 $252,836,330 133,510,475(5) 52.8%2009 275,205,347 20,014,342(5) 7.32010 343,091,276 7,326,383(5) 2.12011 377,153,530 7,629,519 2.02012 414,290,236 59,246,203(5) 14.92013 436,414,537 121,115,869 27.8

Local2008 $708,019,933 647,288,920(6) 91.42009 773,029,316 696,476,702 90.12010 818,672,171 751,395,802 91.82011 960,271,326 882,095,029 91.92012 823,842,166 763,182,795 92.62013 842,998,186 781,173,711 92.7

PRISON OFFICERS’ PENSION FUND2008 $ — — N/A2009 — — N/A2010 — — N/A2011 — — N/A2012 — — N/A2013 — — N/A


Required Supplementary Information Schedule of Employer Contributions


Schedule 2



Required Supplementary Information Schedule of Employer Contributions


YEAR ANNUALENDED REQUIRED EMPLOYER PERCENTAGE

JUNE 30, CONTRIBUTION CONTRIBUTIONS(1)(4) CONTRIBUTED

PUBLIC EMPLOYEES’ RETIREMENT SYSTEM(2)

State 2008 $557,237,789(5) 234,560,830(5) 42.1%2009 622,123,112 49,408,878(5) 7.92010 684,036,322 27,910,317(5) 4.12011 871,820,619 31,079,384 3.62012 979,368,523 155,453,471(5) 15.92013 1,044,327,298 299,011,496 28.6

Local2008 $588,326,347(6) 412,129,536(6) 70.1%2009 663,668,287 578,581,071(6) 87.22010 738,439,441 612,372,679(6) 82.92011 952,570,462 800,936,802 84.12012 915,789,890 820,640,436 89.62013 867,031,711 784,691,262 90.5

STATE POLICE RETIREMENT SYSTEM2008 $78,761,279(5) 36,443,502(5) 46.3%2009 86,385,254 5,574,860(5) 6.52010 91,411,237 1,018,200(5) 1.12011 114,120,061 2,201,604 1.92012 98,869,662 13,545,607(5) 13.72013 99,876,582 27,581,686 27.6


2008 $1,550,503,835 695,275,811 44.8%2009 1,601,478,508 95,863,972 6.02010 1,796,358,016 33,199,655(5) 1.82011 2,123,175,950 30,655,332 1.42012 2,269,823,968 317,927,358 14.02013 2,331,811,395 645,811,044 27.7

Schedule 2, Continued



Required Supplementary InformationSchedule of Employer Contributions


Notes to schedule:(1) In accordance with Chapter 115, P.L. 1997, available excess valuation assets were used to cover, in full or in part, the

employer pension contributions. In fiscal year 2004, only PFRS – State and SPRS were able to utilize excess assets tocover, in full or in part, the employer contributions. In fiscal year 2005, only SPRS had excess assets available to utilize. Infiscal year 2006, no excess assets were available to be utilized toward State contributions. On the local side, excess assetswere utilized to cover, in full or in part, the employer contributions for PERS through fiscal year 2004 and for PFRS throughfiscal year 2003.

(2) The local employer pension contributions to PERS from 1999 to 2004 represent the required contributions under the earlyretirement incentive programs.

(3) The annual required contribution reflects a 30-year, 4.0% annual increasing amortization of the unfunded actuarial accruedliability. Based on expected benefit payments plus retiree drug subsidy for the applicable fiscal year end.

(4) Differences between the amounts in the employer contribution column in this schedule and the amounts recorded in thefinancial statements and footnotes are attributed to timing differences between the 2012 actuarial valuations and the actu-al amounts received in fiscal year 2013. Employer contributions per this schedule represent anticipated contributionamounts determined at the time the actuarial valuations were prepared and finalized prior to the end of fiscal year 2013.The financial statements and footnotes reflect the actual amounts received in 2013.

(5) For State, the fiscal year 2008 annual required contribution and the fiscal year 2007, 2008, 2009, 2010, and 2012 contribu-tions have been reduced in accordance with the provisions of the Appropriation Act for fiscal year 2007, 2008, 2009, 2010,and 2012, respectively.

(6) For local, the fiscal year 2008 annual required contribution and the fiscal year 2008 through 2010 contributions have beenreduced in accordance with Chapter 108, P.L. 2003.


YEAR ENDEDJUNE 30,

ANNUAL REQUIREDCONTRIBUTION (3)

EMPLOYERCONTRIBUTIONS

PERCENTAGECONTRIBUTED

State Health Benefit Program Fund — State

2009 $1,651,900,000 424,341,000 25.7%

2010 1,676,000,000 476,394,000 28.4

2011 1,714,500,000 511,846,000 29.9

2012 1,802,200,000 505,481,000 28.0

2013 1,911,400,000 562,698,000 29.4

State Health Benefit Program Fund — Local

2009 $713,900,000 169,600,000 23.8%

2010 802,100,000 209,100,000 26.1

2011 976,900,000 251,100,000 25.7

2012 1,098,200,000 274,800,000 25.0

2013 1,200,700,000 322,300,000 26.8

State Health Benefit Program Fund — Education

2009 $2,969,700,000 762,859,000 25.7%

2010 2,992,500,000 850,606,000 28.4

2011 3,125,400,000 933,054,000 29.9

2012 3,115,800,000 873,919,000 28.0

2013 3,238,900,000 953,502,000 29.4


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Schedule of Fiduciary Net PositionFiduciary Funds

June 30, 2013

PENSION STATE HEALTH TRUST BENEFIT PROGRAMFUNDS FUNDS TOTAL

Assets:Cash and cash equivalents $ 5,224,206 1,655,438 6,879,644Securities lending collateral 1,556,965,543 — 1,556,965,543Investments, at fair value:

Cash Management Fund 1,488,131,582 766,466,179 2,254,597,761Common Pension Fund A 20,964,307,768 — 20,964,307,768Common Pension Fund B 17,034,005,939 — 17,034,005,939Common Pension Fund D 14,689,068,951 — 14,689,068,951Common Pension Fund E 20,015,522,984 — 20,015,522,984Common stocks 177,323,777 — 177,323,777Mortgages 835,483,242 — 835,483,242U.S. government obligations 399,045,275 — 399,045,275Domestic equities 1,308,850,841 — 1,308,850,841International equities 269,977,576 — 269,977,576Other fixed income securities 909,186,823 — 909,186,823

Total investments 78,090,904,758 766,466,179 78,857,370,937


Members 202,583,660 2,195,872 204,779,532Employers 3,108,925,553 138,922,625 3,247,848,178

Accrued interest and dividends 4,655,008 — 4,655,008Members’ loans 1,057,464,740 — 1,057,464,740Securities sold in transit 45,498,972 — 45,498,972Other 17,886,211 2,908,487 20,794,698

Total receivables 4,437,014,144 144,026,984 4,581,041,128

Total assets $84,090,108,651 912,148,601 85,002,257,252

Liabilities:Accounts payable and accrued expenses 136,440,437 616,581,166 753,021,603Retirement benefits payable 749,773,762 — 749,773,762Cash Overdraft 639,342 — 639,342Noncontributory group insurance premiums payable 14,113,195 — 14,113,195Securities lending collateral and rebates payable 1,556,041,843 — 1,556,041,843

Total liabilities 2,457,008,579 616,581,166 3,073,589,745

Net position held in trust for pensionand health benefits $81,633,100,072 295,567,435 81,928,667,507

See accompanying independent auditors’ report.

Schedule 6


Schedule 7


Schedule of Changes in Fiduciary Net PositionFiduciary Funds


PENSION STATE HEALTHTRUST BENEFIT PROGRAMFUNDS FUNDS TOTAL


Members $ 2,169,508,272 304,860,078 2,474,368,350Employers 2,784,106,180 5,162,767,727 7,946,873,907Other 3,389,743 — 3,389,743

Total contributions 4,957,004,195 5,467,627,805 10,424,632,000

Investment income:Net appreciation in fair value

of investments 6,329,225,015 8,215 6,329,233,230Interest 1,502,028,428 1,370,308 1,503,398,736Dividends 479,409,930 — 479,409,930

8,310,663,373 1,378,523 8,312,041,896Less: investment expense 14,787,277 — 14,787,277

Net investment income 8,295,876,096 1,378,523 8,297,254,619

Total additions 13,252,880,291 5,469,006,328 18,721,886,619

Deductions:Benefits 9,059,850,879 5,395,752,981 14,455,603,860Refunds of contributions 172,134,350 — 172,134,350Administrative and miscellaneous expenses 40,109,342 9,361,600 49,470,942

Total deductions 9,272,094,571 5,405,114,581 14,677,209,152

Net decrease 3,980,785,720 63,891,747 4,044,677,467

Net position held in trust for pension and health benefits:

Beginning of year 77,652,314,352 231,675,688 77,883,990,040

End of year $ 81,633,100,072 295,567,435 81,928,667,507



Schedule 8


Combining Schedule of Balance Sheet InformationFiduciary Funds — Agency Funds

June 30, 2013

ALTERNATE PENSION DENTAL TOTAL BENEFIT ADJUSTMENT EXPENSE AGENCY

PROGRAM FUND FUND PROGRAM FUND FUNDS

Assets:Cash and cash equivalents $ 362,785 516,472 693,643 1,572,900Investments, at fair value:

Cash Management Fund 1,344,122 2,085,549 29,488,297 32,917,968

Total investments 1,344,122 2,085,549 29,488,297 32,917,968

Receivables:State related employer contributions — 628,277 — 628,277Other contributions 30,598,386 3,890 692,755 31,295,031

Total receivables 30,598,386 632,167 692,755 31,923,308

Total assets $ 32,305,293 3,234,188 30,874,695 66,414,176

Liabilities:Accounts payable and accrued expenses $ 32,149,700 — 30,874,695 63,024,395Assets held for local contributing employers — 2,861,776 — 2,861,776Pension adjustment payroll payable — 252,882 — 252,882Due to State of New Jersey 155,593 95,036 — 250,629Due to other funds — 24,494 — 24,494

Total liabilities $ 32,305,293 3,234,188 30,874,695 66,414,176



Schedule 9


Combining Schedule of Changes in Fiduciary Net Position InformationFiduciary Funds — Agency Funds


ALTERNATE DENTALBENEFIT PENSION EXPENSE TOTAL

PROGRAM ADJUSTMENT PROGRAM AGENCYFUND FUND FUND FUNDS


Members $ 946,849 — 87,937,284 88,884,133Employers 178,474,795 3,929,914 37,086,156 219,763,865

Total contributions 179,694,644 3,929,914 125,023,440 308,647,998

Investment income:Net appreciation in fair value

of investments 29 32 305 366Interest 3,255 9,009 40,180 52,444

Total investment income 3,284 9,041 40,485 52,810

Total additions 179,697,928 3,938,955 125,063,925 308,700,808

Deductions:Benefits 179,539,932 3,459,830 119,656,246 302,656,008Refunds of contributions

and to the general fund 157,996 479,125 5,407,679 6,044,800

Total deductions 179,697,928 3,938,955 125,063,925 308,700,808

Change in net position — — — —

Net position — beginning of year — — — —

Net position — end of year $ — — — —



Schedule 10


Combining Schedule of Fiduciary Net Position InformationState Health Benefit Program Fund — State

June 30, 2013

TOTALHEALTH PRESCRIPTION STATE HEALTHBENEFIT DRUG BENEFIT

PROGRAM FUND PROGRAM FUND PROGRAM FUNDSTATE STATE STATE

Assets:Cash $ 663,227 152,961 816,188Investments, at fair value:

Cash Management Fund 26,799,563 32,029,753 58,829,316

Total investments 26,799,563 32,029,753 58,829,316


Members 296,079 235,011 531,090Employers 6,098,063 129,744 6,227,807

Other 53,474 871,113 924,587

Total receivables 6,447,616 1,235,868 7,683,484

Total assets 33,910,406 33,418,582 67,328,988

Liabilities:Accounts payable and accrued expenses 200,000,002 20,496,300 220,496,302

Total liabilities 200,000,002 20,496,300 220,496,302

Net position held in trust for health benefits $ (166,089,596) 12,922,282 (153,167,314)



Schedule 11


Combining Schedule of Changes in Fiduciary Net Position InformationState Health Benefit Program Fund — State



PROGRAM FUND PROGRAM FUND PROGRAM FUNDSTATE STATE STATE


Members $ 150,564,640 52,146,518 202,711,158Employers 1,328,646,429 420,615,439 1,749,261,868

Total contributions 1,479,211,069 472,761,957 1,951,973,026

Investment income:Net appreciation/(depreciation)

in fair value of investments (685) 2,420 1,735Interest 256,203 75,812 332,015

Net investment income 255,518 78,232 333,750

Total additions 1,479,466,587 472,840,189 1,952,306,776

Deductions:Benefits 1,530,773,721 471,046,294 2,001,820,015Administrative expenses 3,510,600 — 3,510,600

Total deductions 1,534,284,321 471,046,294 2,005,330,615

Net increase (decrease) (54,817,734) 1,793,895 (53,023,839)

Net position held in trust for health benefits:Beginning of year (111,271,862) 11,128,387 (100,143,475)

End of year $ (166,089,596) 12,922,282 (153,167,314)



Schedule 12


Combining Schedule of Fiduciary Net Position InformationState Health Benefit Program Fund — Local

June 30, 2013


PROGRAM FUND PROGRAM FUND PROGRAM FUNDLOCAL LOCAL LOCAL





Members 500,382 371,863 872,245Employers 62,979,717 12,010,120 74,989,837

Other 35,427 812,167 847,594


Total assets 253,269,062 99,954,143 353,223,205



Net position held in trust for health benefits $ 133,122,810 90,429,143 223,551,953



Schedule 13


Combining Schedule of Changes in Fiduciary Net Position InformationState Health Benefit Program Fund — Local



PROGRAM FUND PROGRAM FUND PROGRAM FUNDLOCAL LOCAL LOCAL


Members $ 33,322,999 16,725,890 50,048,889Employers 869,896,636 218,518,742 1,088,415,378

Total contributions 903,219,635 235,244,632 1,138,464,267

Investment income:Net appreciation in fair value of investments 2,809 322 3,131Interest 323,213 80,653 403,866


Total additions 903,545,657 235,325,607 1,138,871,264

Deductions:Benefits 854,920,636 206,612,671 1,061,533,307Administrative expenses 1,713,172 — 1,713,172

Total deductions 856,633,808 206,612,671 1,063,246,479

Net increase 46,911,849 28,712,936 75,624,785

Net position held in trust for health benefits:Beginning of year 86,210,961 61,716,207 147,927,168

End of year $ 133,122,810 90,429,143 223,551,953



Schedule 14


Combining Schedule of Fiduciary Net Position InformationState Health Benefit Program Fund — Education

June 30, 2013


PROGRAM FUND PROGRAM FUND PROGRAM FUNDEDUCATION EDUCATION EDUCATION





Members 395,554 396,983 792,537Employers 52,548,683 5,156,298 57,704,981

Other 13,214 1,123,092 1,136,306


Total assets 370,516,628 121,079,780 491,596,408



Net position held in trust for health benefits $ 125,461,016 99,721,780 225,182,796



Schedule 15


Combining Schedule of Changes in Fiduciary Net Position InformationState Health Benefit Program Fund — Education



PROGRAM FUND PROGRAM FUND PROGRAM FUNDEDUCATION EDUCATION EDUCATION


Members $ 31,126,848 20,973,183 52,100,031Employers 1,893,459,560 431,630,921 2,325,090,481

Total contributions 1,924,586,408 452,604,104 2,377,190,512

Investment income:Net appreciation in fair value of investments 2,865 484 3,349Interest 523,467 110,960 634,427


Total additions 1,925,112,740 452,715,548 2,377,828,288

Deductions:Benefits 1,907,472,237 424,927,422 2,332,399,659Administrative expenses 4,137,828 — 4,137,828

Total deductions 1,911,610,065 424,927,422 2,336,537,487

Net increase 13,502,675 27,788,126 41,290,801

Net position held in trust for health benefits:Beginning of year 111,958,341 71,933,654 183,891,995

End of year $ 125,461,016 99,721,780 225,182,796



Schedule 16


Combining Schedule of Balance Sheet InformationAgency Fund — Dental Expense Program

June 30, 2013

TOTAL AGENCY

FUND — DENTALEXPENSE

STATE LOCAL PROGRAM

Assets:Cash and cash equivalents $ 673,910 19,733 693,643Investments, at fair value:



Receivables:Contributions 675,779 16,976 692,755

Total receivables 675,779 16,976 692,755

Total assets 21,074,634 9,800,061 30,874,695


Total liabilities $ 21,074,634 9,800,061 30,874,695



Schedule 17


Combining Schedule of Changes in Fiduciary Net Position InformationAgency Fund — Dental Expense Program


TOTAL AGENCYFUND — DENTAL

EXPENSESTATE LOCAL PROGRAM


Members $ 51,687,697 36,249,587 87,937,284Employers 33,594,744 3,491,412 37,086,156

Total contributions 85,282,441 39,740,999 125,023,440

Investment income:Net appreciation in fair value of investments 290 15 305Interest 29,304 10,876 40,180

Total investment income 29,594 10,891 40,485

Total additions 85,312,035 39,751,890 125,063,925

Deductions:Benefits 81,190,403 38,465,843 119,656,246Refunds of contributions and to the general fund 4,121,632 1,286,047 5,407,679

Total deductions 85,312,035 39,751,890 125,063,925

Change in net position — — —

Net position — beginning of year — — —

Net position — end of year $ — — —



Schedule 18


Schedule of Changes in Assets and Liabilities Information Agency Fund — Alternate Benefit Program Fund

June 30, 2013

BALANCE BALANCEJUNE 30, 2012 ADDITIONS DEDUCTIONS JUNE 30, 2013

Assets:Cash and cash equivalents $ 752,115 159,545,785 159,935,115 362,785

Investments, at fair value:Cash Management Fund 558,756 185,061,944 184,276,578 1,344,122

Receivables:Other contributions 30,816,885 30,598,386 30,816,885 30,598,386

Total assets $ 32,127,756 375,206,115 375,028,578 32,305,293

Liabilities:Accounts payable and accrued expenses $ 32,028,529 34,486,560 34,365,389 32,149,700

Due to State of New Jersey 99,227 244,108 187,742 155,593




Schedule 19


Schedule of Changes in Assets and Liabilities Information Agency Fund — Pension Adjustment Fund

June 30, 2013


Assets:Cash and cash equivalents $ 610,514 3,207,549 3,301,591 516,472

Investments, at fair value:Cash Management Fund 1,420,116 4,296,771 3,631,338 2,085,549

Receivables:State related employer contributions 852,147 3,421,388 3,645,258 628,277Other contributions 9,435 34,146 39,691 3,890

Total assets $ 2,892,212 10,959,854 10,617,878 3,234,188

Liabilities:Assets held for local contributing employers $ 2,412,989 448,186 (601) 2,861,776Pension adjustment payroll payable 237,510 3,461,482 3,446,110 252,882Due to State of New Jersey 64,128 95,036 64,128 95,036Due to other funds 177,585 2,569,122 2,722,213 24,494




Schedule 20


Schedule of Changes in Assets and Liabilities Information Agency Fund — Dental Expense Program — Total

June 30, 2013


Assets:Cash and cash equivalents $ 1,048,014 37,647,373 38,001,744 693,643Investments, at fair value:


Receivables:Other contributions (2,286,141) 125,367,419 122,388,523 692,755

Total assets $ 25,018,739 353,456,693 347,600,737 30,874,695

Liabilities:

Accounts payable and accrued expenses $ 25,018,739 76,233,756 70,377,800 30,874,695




Schedule 21


Schedule of Changes in Assets and Liabilities Information Agency Fund — Dental Expense Program — State

June 30, 2013


Assets:Cash and cash equivalents $ 651,305 32,526,886 32,526,886 673,910Investments, at fair value:


Receivables:Other contributions 572,165 82,664,609 82,560,995 675,779

Total assets $ 17,179,858 266,180,581 262,285,805 21,074,634

Liabilities:Accounts payable and accrued expenses $ 17,179,858 69,591,369 65,696,593 21,074,634




Schedule 22


Schedule of Changes in Assets and Liabilities InformationAgency Fund — Dental Expense Program — Local

June 30, 2013


Assets:Cash and cash equivalents $ 396,709 5,120,487 5,497,463 19,733Investments, at fair value:


Receivables:Other contributions (2,858,306) 42,702,810 39,827,528 16,976

Total assets $ 7,838,881 87,276,112 85,314,932 9,800,061

Liabilities:

Accounts payable and accrued expenses $ 7,838,881 6,642,387 4,681,207 9,800,061




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087,

129

898,

612

4,71

8,27

2,38

524

1,53

0,38

14,

247,

353,

712

12,7

31,1

74,8

26

Ded

uctio

ns:

Ben

efits

3,88

2,65

947

,684

,869

1,96

9,46

8,73

61,

763,

964

3,04

0,87

4,32

018

2,41

8,71

43,

673,

109,

659

8,91

9,20

2,92

1R

efun

ds o

f co

ntrib

utio

ns—

—6,

883,

956

—11

7,98

5,23

638

,884

47,2

25,5

0217

2,13

3,57

8A

dmin

istr

ativ

e an

d m

isce

llane

ous

expe

nses

11

,739

163,

232

3,88

1,45

76,

965

22,8

14,6

5329

4,88

612

,482

,060

39,6

54,9

92

Tota

l ded

uctio

ns3,

894,

398

47,8

48,1

011,

980,

234,

149

1,77

0,92

93,

181,

674,

209

182,

752,

484

3,73

2,81

7,22

19,

130,

991,

491

Net

incr

ease

/(de

crea

se)

(505

,044

)(6

,204

,848

)1,

497,

852,

980

(872

,317

)1,

536,

598,

176

58,7

77,8

9751

4,53

6,49

13,

600,

183,

335

Net

pos

ition

hel

d in

tru

st fo

r pe

nsio

n an

d he

alth

ben

efits

Beg

inni

ng o

f ye

ar4,

858,

860

232,

035,

665

21,0

07,0

84,5

659,

044,

236

26,3

83,4

37,9

981,

729,

847,

825

25,5

44,8

36,2

5074

,911

,145

,399

End

of

year

$4,3

53,8

1622

5,83

0,81

722

,504

,937

,545

8,17

1,91

927

,920

,036

,174

1,78

8,62

5,72

226

,059

,372

,741

78,5

11,3

28,7

34

See

acc

ompa

nyin

g in

depe

nden

t aud

itors

’rep

ort.


3D SYSTEMS CORP 880,000 $ 38,632,0003I GROUP PLC 1,563,983 8,008,188ABB LTD 1,603,563 34,760,954ABBOTT LABORATORIES 2,616,000 91,246,080ABBVIE INC 2,331,000 96,363,540ABERCROMBIE + FITCH CO CL A 68,500 3,099,625ABERTIS INFRAESTRUCTURAS SA 306,979 5,346,954ACADIA REALTY TRUST 221,996 5,481,081ACCELRYS INC 70,000 588,000ACCO BRANDS CORP 212,000 1,348,320ACE LTD 120,000 10,737,600ACORDA THERAPEUTICS INC 90,000 2,969,100ACS ACTIVIDADES CONS Y SERV 176,534 4,669,665ACTAVIS INC 255,000 32,186,100ACTELION LTD 152,454 9,168,348ACTIVISION BLIZZARD INC 1,900,000 27,094,000ADARO ENERGY TBK PT 31,089,500 2,693,901ADECCO SA 105,130 5,983,460ADIDAS AG 190,692 20,607,982ADOLFO DOMINGUEZ 352,344 1,612,139ADT CORP/THE 292,000 11,636,200ADTRAN INC 150,000 3,691,500ADVANCE AUTO PARTS INC 72,500 5,884,825ADVANCED INFO SERVICE 320,300 2,912,287ADVANCED INFO SERVICE NVDR 808,800 7,353,912ADVANCED SEMICONDUCTOR ADR 1,320,400 5,360,824AEGON NV 1,061,320 7,089,538AEON CO LTD 328,300 4,303,081AES CORP 1,275,000 15,287,250AETNA INC 1,635,120 103,895,525AFFILIATED MANAGERS GROUP 20,000 3,278,800AFFYMAX INC 220,000 226,600AFFYMETRIX INC 40,000 177,600AFLAC INC 10,000 581,200AGEAS 254,812 8,934,583AGGREKO PLC 148,986 3,710,380AGILENT TECHNOLOGIES INC 350,000 14,966,000AGL ENERGY LTD 292,316 3,874,435AGL RESOURCES INC 70,000 3,000,200AGNICO EAGLE MINES LTD 85,700 2,355,846AGREE REALTY CORP 205,000 6,051,600AGRIUM INC W/D 144,486 12,488,017AIA GROUP LTD 7,731,400 32,744,331AIR CHINA LTD H 6,570,000 4,709,586AIR LIQUIDE SA 221,605 27,327,596AIR PRODUCTS + CHEMICALS INC 50,000 4,578,500AIRASIA BHD 5,630,100 5,684,450AIRASIA X BHD 2,195,800 868,729AIRSPAN NETWORKS INC 7,000 20,930AISIN SEIKI CO LTD 149,300 5,703,866AJINOMOTO CO INC 756,000 11,081,049

Schedule 25


Common Pension Funds — Portfolio of Investments

Equities

June 30, 2013

NAME SHARES FAIR VALUE


AKAMAI TECHNOLOGIES INC 80,000 $3,404,000AKBANK T.A.S. 3,555,963 14,485,927AKORN INC 50,000 676,000AKZO NOBEL 217,190 12,228,442ALASKA AIR GROUP INC 1,140,000 59,280,000ALEXANDER + BALDWIN INC 170,000 6,757,500ALEXANDRIA REAL ESTATE EQUITIES 155,975 10,250,677ALFA S.A.B. A 3,821,800 9,142,381ALGETA ASA 292,000 11,056,313ALIMENTATION COUCHE TARD B 150,000 8,872,458ALKERMES PLC 130,000 3,728,400ALLEGHANY CORP 9,550 3,660,610ALLEGHENY TECHNOLOGIES INC 1,100,000 28,941,000ALLERGAN INC 408,800 34,437,312ALLIANCE ONE INTERNATIONAL 600,000 2,280,000ALLIANT ENERGY CORP 65,000 3,277,300ALLIANZ SE 412,690 60,214,803ALLSCRIPTS HEALTHCARE SOLUTION 70,000 905,800ALLSTATE CORP 588,054 26,463,558ALLY FINANCIAL INC 2,401 2,282,075ALSTRIA OFFICE REIT AG 120,000 1,310,404ALTAGAS LTD 150,000 5,241,006ALTERA CORP 500,000 16,495,000ALTRIA GROUP INC 3,356,000 117,426,440AMADEUS IT HOLDING SA 380,777 12,153,563AMAG PHARMACEUTICALS INC 296,167 6,589,716AMAZON.COM INC 410,000 113,852,900AMBUJA CEMENT GDR 2,171,323 6,809,269AMC NETWORKS INC A 385,000 25,182,850AMCOR LIMITED 818,095 7,593,272AMEC PLC 225,010 3,429,791AMEREN CORPORATION 192,000 6,612,480AMERESCO INC CL A 125,000 1,126,250AMERICA MOVIL ADR SERIES L 586,350 12,753,113AMERICAN APPAREL INC 270,000 518,400AMERICAN ASSETS TRUST INC 382,500 11,803,950AMERICAN CAMPUS COMMUNITIES 311,516 12,666,241AMERICAN CAPITAL MORTGAGE INVESTMENT 105,000 1,886,850AMERICAN EAGLE OUTFITTERS 170,000 3,104,200AMERICAN ELECTRIC POWER 416,000 18,628,480AMERICAN EXPRESS CO 920,000 68,779,200AMERICAN INTERNATIONAL GROUP 2,462,000 110,051,400AMERICAN REALTY CAPITAL PROPERTIES 75,000 1,144,500AMERICAN RESIDENTIAL PROPERTIES 550,000 9,460,000AMERICAN STATES WATER CO 22,500 1,207,575AMERICAN TOWER CORP 1,012,300 74,069,991AMERICAN WATER WORKS CO INC 30,000 1,236,900AMERIPRISE FINANCIAL INC 1,132,000 91,556,160AMERISOURCEBERGEN CORP 265,000 14,794,950AMGEN INC 531,355 52,423,484AMMB HOLDINGS BHD 2,138,500 4,968,061




Equities

June 30, 2013



AMOREPACIFIC CORP 5,284 $4,233,492AMP LTD 2,871,357 11,170,263ANADARKO PETROLEUM CORP 793,000 68,142,490ANADOLU EFES BIRACILIK VE 1,147,329 16,649,932ANALOG DEVICES INC 300,000 13,518,000ANGIODYNAMICS INC 130,000 1,466,400ANGLO AMERICAN PLC 850,832 16,337,188ANGLOGOLD ASHANTI LTD 265,655 3,745,909ANGLOGOLD ASHANTI SPON ADR 13,210 188,903ANHANGUERA EDUCACIONAL PARTICIPACOES 673,600 3,933,564ANHEUSER BUSCH INBEV NV 584,411 51,952,202ANHUI CONCH CEMENT CO LTD H 1,607,000 4,340,527ANSYS INC 100,000 7,310,000ANTOFAGASTA PLC 222,451 2,682,262AON PLC 395,000 25,418,250AP MOELLER MAERSK A/S B 1,941 13,882,286APACHE CORP 275,000 23,053,250APARTMENT INVT + MGMT CO A 180,000 5,407,200APOLLO GROUP INC CL A 1,500,000 26,580,000APPLE INC 1,414,000 560,057,120APPLIED MATERIALS INC 1,500,000 22,365,000APPLIED MICRO CIRCUITS CORP 750,000 6,600,000AQUA AMERICA INC 121,666 3,806,929AQUARIUS PLATINUM LTD 2,333,295 1,397,869ARBOR REALTY TRUST INC 200,000 1,256,000ARCELORMITTAL 768,693 8,567,012ARCH CAPITAL GROUP LTD 338,556 17,405,164ARCH COAL INC 494,000 1,867,320ARCHER DANIELS MIDLAND CO 562,526 19,075,257ARES COMMERCIAL REAL ESTATE 639,875 8,196,799ARIAD PHARMACEUTICALS INC 150,000 2,623,500ARKEMA 74,326 6,814,086ARM HOLDINGS PLC 1,100,801 13,273,203ARRAY BIOPHARMA INC 265,000 1,203,100ARRIS GROUP INC 150,000 2,152,500ARYZTA AG 187,839 10,541,934ASAHI GLASS CO LTD 540,692 3,516,253ASAHI GROUP HOLDINGS LTD 425,500 10,541,657ASAHI KASEI CORP 720,000 4,754,820ASCENA RETAIL GROUP INC 126,000 2,198,700ASHFORD HOSPITALITY TRUST 135,000 1,545,750ASHLAND INC 50,000 4,175,000ASML HOLDING NV 228,305 17,989,717ASPEN TECHNOLOGY INC 250,000 7,197,500ASSA ABLOY AB B 322,292 12,548,924ASSICURAZIONI GENERALI 811,157 14,149,804ASSOCIATED BRITISH FOODS PLC 350,000 9,210,163ASSOCIATED ESTATES REALTY CP 170,000 2,733,600ASTELLAS PHARMA INC 441,500 23,956,158ASTRA INTERNATIONAL TBK PT 11,212,000 7,907,708ASTRAZENECA PLC 794,373 37,530,325




Equities

June 30, 2013



ASTRO MALAYSIA HOLDINGS BHD 6,649,500 $6,376,954ASUSTEK COMPUTER GDR 107,825 4,630,455ASX LTD 158,938 4,811,154ASX LTD RIGHTS 16,730 47,626AT+T INC 3,700,000 130,980,000ATEA ASA 494,878 4,964,138ATMEL CORP 4,500,000 33,075,000ATMOS ENERGY CORP 50,000 2,053,000AUGME TECHNOLOGIES INC 500,000 200,000AUST AND NZ BANKING GROUP 1,748,710 45,747,495AUTODESK INC 1,260,000 42,764,400AUTOMATIC DATA PROCESSING 740,000 50,956,400AUTOZONE INC 27,300 11,566,737AVALONBAY COMMUNITIES INC 260,000 35,076,600AVERY DENNISON CORP 133,000 5,687,080AVID TECHNOLOGY INC 280,000 1,646,400AVIV REIT INC 55,000 1,390,950AVIVA PLC 1,575,566 8,115,291AVNET INC 330,000 11,088,000AVON PRODUCTS INC 360,000 7,570,800AVX CORP 270,000 3,172,500AXA SA 1,225,515 24,046,104AXIALL CORP 500,000 21,290,000AXIATA GROUP BERHAD 2,674,300 5,611,840AXIS CAPITAL HLDGS LTD 40,000 898,000B/E AEROSPACE INC 140,000 8,831,200BABCOCK + WILCOX CO/THE 3,000,000 90,090,000BAE SYSTEMS PLC 2,361,218 13,716,227BAIDU INC SPON ADR 248,100 23,452,893BAKER HUGHES INC 965,147 44,522,231BALL CORP 1,361,100 56,540,094BALLANTYNE STRONG INC 640,000 2,700,800BANCO BILBAO VIZCAYA ARGENTA 3,525,160 29,532,127BANCO BRADESCO ADR 501,520 6,524,775BANCO BRADESCO SA PREF 1,130,240 14,735,254BANCO DE SABADELL SA 1,810,875 3,001,177BANCO DO BRASIL S.A. 4,008,017 40,151,837BANCO ESPIRITO SANTO 7,009,392 5,603,359BANCO POPULAR ESPANOL 2,000,000 6,122,290BANCO SANTANDER SA 7,155,676 45,594,972BANGKOK BANK PUBLIC CO 2,855,300 18,780,629BANK LEUMI LE ISRAEL 2,494,999 8,293,018BANK MANDIRI PERSERO TBK PT 24,229,052 21,970,929BANK OF AMERICA CORP 11,993,615 154,237,889BANK OF AYUDHYA PCL FOREIGN 12,304,900 14,084,280BANK OF CHINA LTD H 44,928,000 18,477,805BANK OF EAST ASIA 1,486,400 5,356,241BANK OF MONTREAL 403,453 23,328,720BANK OF NEW YORK MELLON CORP 849,167 23,819,134BANK OF NOVA SCOTIA 679,649 36,219,600BANK PEKAO SA 207,232 9,330,992




Equities

June 30, 2013



BANK RAKYAT INDONESIA PERSERO 6,444,500 $5,032,229BANK TABUNGAN NEGARA PERSERO 38,175,680 4,423,379BANK ZACHODNI WBK SA 211,270 17,757,246BANPU PUBLIC CO LTD 779,750 6,058,996BANQUE CANTONALE VAUDOIS 24,618 12,202,972BAOXIN AUTO GROUP LTD 1,617,500 1,032,267BARCLAYS PLC 7,521,704 31,766,053BARRICK GOLD CORP 1,313,204 20,666,510BASF SE 597,938 53,341,243BASIC ENERGY SERVICES INC 45,000 544,050BAXTER INTERNATIONAL INC 511,000 35,396,970BAYER AG 913,170 97,249,543BAYER AG SPONSORED ADR 15,000 1,600,050BAYERISCHE MOTOREN WERKE AG 247,378 21,602,004BB SEGURIDADE PARTICIPACOES 2,105,900 16,778,181BB+T CORPORATION 40,000 964,000BCE INC 143,100 5,849,066BDO UNIBANK INC 5,490,350 10,802,772BEAM INC 40,000 2,524,400BEASLEY BROADCAST GROUP INC 298,000 2,497,240BEAZER HOMES USA INC 1,075,000 18,834,000BEBE STORES INC 50,000 280,500BECTON DICKINSON AND CO 180,000 17,789,400BED BATH + BEYOND INC 681,000 48,282,900BEIJING ENTERPRISES HOLDINGS 559,500 4,032,315BEL FUSE INC CL B 90,000 1,210,500BELLE INTERNATIONAL HOLDINGS 2,496,000 3,430,397BENCHMARK ELECTRONICS INC 50,000 1,005,000BERKSHIRE HATHAWAY INC CL A 95 16,017,000BERKSHIRE HATHAWAY INC CL B 940,000 105,204,800BERRY PETROLEUM CO CLASS A 920,000 38,934,400BEZEQ THE ISRAELI TELECOM CO 1,225,000 1,635,420BG GROUP PLC 2,849,498 48,339,721BHP BILLITON LTD 2,069,494 59,424,562BHP BILLITON PLC 1,437,569 36,673,680BIDVEST GROUP LTD 841,972 20,775,349BILL BARRETT CORP 80,000 1,617,600BIOGEN IDEC INC 130,000 27,976,000BLACK EARTH FARMING LTD SDR 486,197 504,245BLACK HILLS CORP 45,000 2,193,750BLACKROCK CORPORATE HIGH YIELD 275,000 3,294,500BLACKROCK DEBT STRATEGIES FUND 811,541 3,449,049BLACKROCK INC 355,000 91,181,750BLACKSTONE MORTGAGE TRU CL A 506,000 12,498,200BLOOMBERRY RESORTS CORP 11,382,300 2,371,313BLUEBIRD BIO INC 18,000 449,460BM+FBOVESPA SA 416,800 2,332,065BNP PARIBAS 607,092 33,123,650BOARDWALK REAL ESTATE INVEST 35,000 1,933,883BOC HONG KONG HOLDINGS LTD 2,086,500 6,415,779BOEING CO/THE 955,000 97,830,200




Equities

June 30, 2013



BOMBARDIER INC B 1,123,101 $4,982,333BONDHOLDCO 32,900 89,807BOSTON BEER COMPANY INC A 128,000 21,841,920BOSTON PROPERTIES INC 150,430 15,865,852BOSTON PROPERTIES INC 30,500 3,216,835BOSTON SCIENTIFIC CORP 1,817,697 16,850,051BOUYGUES SA 160,031 4,079,197BP PLC 11,021,142 76,098,545BRAMBLES LTD 1,488,697 12,727,423BRANDYWINE REALTY TRUST 240,000 3,244,800BRE PROPERTIES INC 38,500 1,925,770BRENNTAG AG 68,243 10,351,945BRF SA 1,287,654 28,241,478BRIDGESTONE CORP 387,782 13,194,777BRIGGS + STRATTON 150,000 2,970,000BRIGHTCOVE 527,000 4,616,520BRINK S CO/THE 100,000 2,551,000BRISTOL MYERS SQUIBB CO 2,186,938 97,734,259BRITISH AMERICAN TOBACCO BHD 547,800 10,333,559BRITISH AMERICAN TOBACCO PLC 1,184,027 60,474,044BRITISH LAND CO PLC 1,501,203 12,898,498BRITISH SKY BROADCASTING GRO 1,088,515 13,075,533BROADCOM CORP CL A 1,400,000 47,264,000BROCADE COMMUNICATIONS SYS 150,000 864,000BROOKFIELD ASSET MANAGE CL A 616,836 22,121,312BSQUARE CORP 290,000 797,500BT GROUP PLC 4,745,449 22,254,436BTS RAIL MASS TRANSIT FUND F 18,683,300 7,168,508BURBERRY GROUP PLC 456,331 9,350,506C+J ENERGY SERVICES INC 80,000 1,549,600CABLEVISION SYSTEMS NY GROUP 2,510,000 42,218,200CABOT OIL + GAS CORP 170,000 12,073,400CADENCE DESIGN SYS INC 720,000 10,425,600CAIRN ENERGY PLC 280,396 1,076,375CALAVO GROWERS INC 744,800 20,251,112CALGON CARBON CORP 640,000 10,675,200CALIFORNIA WATER SERVICE GROUP 45,000 877,950CALIX NETWORKS INC 40,000 404,000CALPINE CORP 40,000 849,200CAMDEN PROPERTY TRUST 96,000 6,637,440CAMECO CORP 215,569 4,436,232CAMERON INTERNATIONAL CORP 192,000 11,742,720CAMPUS CREST COMMUNITIES INC 133,000 1,534,820CANADIAN IMPERIAL BANK OF COMMERCE 289,220 20,462,942CANADIAN REAL ESTATE INVESTMENT TRUST 53,404 2,204,601CANADIAN NATL RAILWAY CO 320,861 31,144,762CANADIAN NATURAL RESOURCES 662,386 18,616,754CANADIAN OIL SANDS LTD 517,500 9,550,903CANADIAN PACIFIC RAILWAY LTD 125,300 15,147,172CANADIAN UTILITIES LTD A 210,400 7,361,357CANON INC 2,115,253 68,886,530




Equities

June 30, 2013



CAP GEMINI 277,870 $13,490,413CAPITA PLC 708,837 10,385,402CAPITAL ONE FINANCIAL CORP 990,000 62,181,900CAPITAL SENIOR LIVING CORP 35,000 836,500CAPITALAND LTD 1,942,355 4,716,907CARDINAL HEALTH INC 435,000 20,532,000CAREFUSION CORP 430,000 15,845,500CARLSBERG AS B 58,693 5,247,250CARMAX INC 115,000 5,308,400CARMIKE CINEMAS INC 90,000 1,742,400CARNIVAL PLC 272,032 9,448,335CARREFOUR SA 437,685 12,021,375CARTER S INC 166,000 12,295,620CASH AMERICA INTL INC 100,000 4,546,000CATAMARAN CORP 116,311 5,643,832CATERPILLAR INC 120,000 9,898,800CAVIUM INC 300,000 10,611,000CBRE GROUP INC A 335,000 7,825,600CBS CORP CL B 1,100,000 53,757,000CCR SA 3,612,600 28,945,936CELGENE CORP 240,000 28,058,400CELLDEX THERAPEUTICS INC 530,000 8,273,300CEMEX SAB ADR 3,217,835 34,044,694CENOVUS ENERGY INC 817,107 23,236,371CENTERPOINT ENERGY INC 400,000 9,396,000CENTRAL JAPAN RAILWAY CO 124,700 15,227,372CENTRICA PLC 4,038,308 22,061,902CERNER CORP 300,000 28,827,000CF INDUSTRIES HOLDINGS INC 307,200 52,684,800CHAILEASEHOLDCO 628,708 7,390,463CHARLES RIVER LABORATORIES 50,000 2,051,500CHART INDUSTRIES INC 560,000 52,690,400CHARTER COMMUNICATIONS INC. 2,107 164,346CHATHAM LODGING TRUST 219,100 3,764,138CHECKPOINT SYSTEMS INC 225,000 3,192,750CHEIL INDUSTRIES INC 51,376 4,030,725CHEIL WORLDWIDE INC 110,785 2,386,332CHENIERE ENERGY INC 75,000 2,082,000CHENIERE ENERGY PARTNERS LP 175,000 5,230,750CHESAPEAKE ENERGY CORP 3,100,000 63,178,000CHESAPEAKE LODGING TRUST 634,400 13,189,176CHEUNG KONG HOLDINGS LTD 1,773,000 24,047,342CHEVRON CORP 886,900 104,955,746CHICO S FAS INC 170,000 2,900,200CHINA CONSTRUCTION BANK H 77,194,217 54,638,619CHINA LONGYUAN POWER GROUP H 3,283,000 3,403,059CHINA MENGNIU DAIRY CO 1,937,000 6,930,032CHINA MERCHANTS HLDGS INTL 2,500,000 7,783,945CHINA MOBILE LTD 2,118,500 22,178,241CHINA MOBILE LTD SPON ADR 595,854 30,847,362CHINA OVERSEAS GRAND OCEANS 1,552,000 1,980,932




Equities

June 30, 2013



CHINA OVERSEAS LAND + INVEST 2,222,000 $5,801,118CHINA PACIFIC INSURANCE GR H 7,085,400 22,609,043CHINA PETROLEUM + CHEM ADR 60,100 5,499,150CHINA PETROLEUM + CHEMICAL H 11,572,600 8,146,409CHINA RESOURCES LAND LTD 550,000 1,499,739CHINA RESOURCES POWER HOLDIN 1,050,000 2,507,107CHINA SHENHUA ENERGY CO H 703,000 1,785,518CHINA SOUTHERN AIRLINES CO H 1,094,000 442,884CHINA STEEL CORP 935,520 766,308CHRISTIAN DIOR 34,409 5,546,087CHUBB CORP 687,000 58,154,550CHUGAI PHARMACEUTICAL CO LTD 399,700 8,272,846CHUNGHWA TELECOM CO LTD 541,760 1,843,766CHURCH + DWIGHT CO INC 200,000 12,342,000CIE FINANCIERE RICHEMON BR A 337,521 29,804,872CIELO SA 1,790,112 45,379,811CIENA CORP 1,250,000 24,275,000CIGNA CORP 360,000 26,096,400CIMAREX ENERGY CO 68,000 4,419,320CIMB GROUP HOLDINGS BHD 3,946,000 10,341,155CINEDIGM DIGITAL CINEMA A 2,400,000 3,408,000CINEMARK HOLDINGS INC 900,000 25,128,000CIPLA LTD SPON GDR 144A 808,200 5,330,645CIRRUS LOGIC INC 1,700,000 29,512,000CISCO SYSTEMS INC 7,900,000 192,049,000CIT GROUP INC 850,000 39,635,500CITIC SECURITIES CO LTD H 2,075,500 3,698,055CITIGROUP INC 4,167,442 199,912,193CITRIX SYSTEMS INC 1,030,000 62,139,900CITY DEVELOPMENTS LTD 153,004 1,290,817CITY NATIONAL CORP 72,000 4,562,640CLEAN ENERGY FUELS CORP 2,500,000 33,000,000CLEAN HARBORS INC 600,000 30,318,000CLECO CORPORATION 60,000 2,785,800CLIFFS NATURAL RESOURCES INC 1,400,000 22,750,000CLOROX COMPANY 120,000 9,976,800CLOUD PEAK ENERGY INC 264,000 4,350,720CLP HOLDINGS LTD 1,904,500 15,407,682CLUB MEDITERRANEE SA 665,752 15,170,063CME GROUP INC 75,000 5,698,500CMS ENERGY CORP 350,000 9,509,500CNOOC LTD 19,345,000 32,822,165COACH INC 150,000 8,563,500COCA COLA CO/THE 5,615,000 225,217,650COLGATE PALMOLIVE CO 1,550,000 88,799,500COLONY FINANCIAL INC 25,000 497,250COLOPLAST B 197,996 11,086,520COMCAST CORP SPECIAL CL A 3,000,000 119,010,000COMMERCIAL INTL BANK GDR 1,947,424 7,692,325COMMERZBANK AG 802,646 6,988,149COMMONWEALTH BANK OF AUSTRALIA 1,033,059 65,417,355




Equities

June 30, 2013



COMMUNITY HEALTH SYSTEMS INC 1,270,000 $59,537,600COMMVAULT SYSTEMS INC 240,000 18,213,600COMPAGNIE DE SAINT GOBAIN 362,032 14,635,256COMPANHIA DE BEBIDAS 1,091,333 40,761,288COMPASS GROUP PLC 1,413,750 18,011,575COMPUTERSHARE LTD 764,242 7,184,369COMPUWARE CORP 1,500,000 15,525,000COMSTOCK RESOURCES INC 195,000 3,067,350CONAGRA FOODS INC 385,000 13,448,050CONN S INC 49,000 2,536,240CONNECTICUT WATER SERVICE INC 45,000 1,291,500CONOCOPHILLIPS 1,855,000 112,227,500CONSOL ENERGY INC 400,000 10,840,000CONSOLIDATED EDISON INC 203,000 11,836,930CONTINENTAL AG 59,248 7,901,582COPA HOLDINGS SA CLASS A 114,100 14,960,792CORESITE REALTY CORP 175,000 5,566,750CORNING INC 750,000 10,672,500COSAN LTD CLASS A SHARES 41,600 672,256COSCO CORP SINGAPORE LTD 1,093,000 642,029COSCO PACIFIC LTD 7,630,000 9,827,264COSMAX INC 64,444 2,578,776COSTCO WHOLESALE CORP 385,000 42,569,450COTY INC CL A 177,000 3,040,860COUNTRY GARDEN HOLDINGS CO 4,343,890 2,256,974COUNTRYWIDE PLC 75,000 574,450COVANCE INC 79,750 6,072,165COVIDIEN PLC 315,000 19,794,600COWAY CO LTD 498,268 24,345,129CP ALL PCL FOREIGN 6,818,500 8,573,964CR BARD INC 45,000 4,890,600CRAY INC 250,000 4,910,000CREDICORP LTD 135,250 17,306,590CREDIT AGRICOLE SA 855,061 7,338,907CREDIT SUISSE GROUP AG 1,049,961 27,798,471CREE INC 500,000 31,930,000CRESCENT POINT ENERGY CORP 260,818 8,818,786CRH PLC 644,371 13,024,449CROMWELL PROPERTY GROUP 660,653 589,611CROWN CASTLE INTL CORP 56,200 4,068,318CROWN HOLDINGS INC 447,000 18,385,110CROWN MEDIA HOLDINGS CL A 1,600,000 3,952,000CSL LTD 331,519 18,686,820CSX CORP 452,250 10,487,678CTBC FINANCIAL HOLDING CO LT 1,951,912 1,208,100CUBESMART 1,056,000 16,874,880CUBIC CORP 900,000 43,290,000CUI GLOBAL INC 525,000 2,913,750CUMMINS INC 340,000 36,876,400CUMULUS MEDIA INC CL A 352,100 1,193,619CVS CAREMARK CORP 1,694,943 96,916,841




Equities

June 30, 2013



CYPRESS SEMICONDUCTOR CORP 1,900,000 $20,387,000CYRELA BRAZIL REALTY SA EMP 440,300 3,057,514CYS INVESTMENTS INC 230,000 2,118,300CYTEC INDUSTRIES INC 251,500 18,422,375DAI ICHI LIFE INSURANCE 6,461 9,314,091DAIBIRU CORP 110,000 1,223,637DAIICHI SANKYO CO LTD 686,500 11,444,546DAIKIN INDUSTRIES LTD 189,400 7,645,784DAIMLER AG 594,269 35,907,808DAITO TRUST CONSTRUCT CO LTD 88,300 8,311,320DAIWA HOUSE INDUSTRY CO LTD 365,000 6,801,379DAIWA SECURITIES GROUP INC 1,273,000 10,675,079DANAHER CORP 400,000 25,320,000DANONE 341,856 25,621,870DANSKE BANK A/S 495,358 8,460,058DARDEN RESTAURANTS INC 180,000 9,086,400DBS GROUP HOLDINGS LTD 1,454,322 17,773,390DDR CORP 741,000 12,620,050DECKERS OUTDOOR CORP 32,500 1,641,575DEERE + CO 690,000 56,062,500DELHAIZE GROUP 91,047 5,620,317DELTA AIR LINES INC 625,000 11,693,750DELTA ELECTRONICS GDR 120,434 2,742,523DELTA ELECTRONICS INC 292,352 1,331,489DENBURY RESOURCES INC 425,000 7,361,000DENDREON CORP 265,000 1,091,800DENSO CORP 427,098 20,057,504DENTSPLY INTERNATIONAL INC 280,000 11,468,800DENTSU INC 168,900 5,832,053DEUTSCHE BANK AG 654,925 27,373,672DEUTSCHE BOERSE AG 139,290 9,156,002DEUTSCHE LUFTHANSA 465,094 9,427,990DEUTSCHE POST AG 555,033 13,776,264DEUTSCHE TELEKOM AG 1,951,533 22,738,967DEVON ENERGY CORPORATION 965,000 50,064,200DEX MEDIA INC 991 17,419DEXUS PROPERTY GROUP 500,000 489,712DIAGEO PLC 2,271,248 64,762,291DIAL GLOBAL INC 110,000 29,700DIAMOND FOODS INC 400,000 8,300,000DIAMOND OFFSHORE DRILLING 79,000 5,434,410DICK S SPORTING GOODS INC 109,000 5,456,540DIGI INTERNATIONAL INC 330,000 3,092,100DIGITAL REALTY TRUST INC 149,500 9,119,500DIGITAL RIVER INC 30,000 563,100DIRECTBUY HLDGS INC. 693 35DISCOVER FINANCIAL SERVICES 411,500 19,603,860DISCOVERY COMMUNICATIONS C 180,000 12,538,800DISH NETWORK CORP A 1,200,000 51,024,000DMCI HOLDINGS INC 6,196,470 7,401,339DNB ASA 554,197 7,982,513




Equities

June 30, 2013



DOCTOR REDDY S LAB ADR 337,946 $12,781,118DOLLAR GENERAL CORP 152,000 7,665,360DOLLAR TREE INC 816,000 41,485,440DOMINION RESOURCES INC/VA 515,994 29,318,779DON QUIJOTE CO LTD 400,000 19,429,204DOOSAN CORP 7,195 809,560DOUGLAS EMMETT INC 331,303 8,266,010DOVER MOTORSPORTS INC 300,000 648,000DOW CHEMICAL CO/THE 1,304,500 41,965,765DREW INDUSTRIES INC 500,000 19,660,000DSW INC CLASS A 68,499 5,032,622DTE ENERGY COMPANY 135,000 9,046,350DU PONT (E.I.) DE NEMOURS 600,000 31,500,000DUKE ENERGY CORP 614,168 40,596,966DUPONT FABROS TECHNOLOGY 395,800 9,558,570E TRADE FINANCIAL CORP 2,700,000 34,182,000E.ON SE 1,164,561 19,088,434E2OPEN INC 160,000 2,800,000EADS NV 346,066 18,472,418EAST JAPAN RAILWAY CO 274,800 21,328,917EAST WEST BANCORP INC 150,000 4,125,000EASTERN TOBACCO 8,056 105,587EASTMAN CHEMICAL CO 200,000 14,002,000EATON VANCE CORP 125,000 4,698,750EBAY INC 900,000 46,548,000EBRO FOODS SA 106,060 2,175,462ECHOSTAR CORP A 610,000 23,857,100EDISON INTERNATIONAL 320,000 15,411,200EDP ENERGIAS DE PORTUGAL SA 1,711,418 5,505,849EDUCATION REALTY TRUST INC 265,000 2,710,950EDWARDS LIFESCIENCES CORP 79,200 5,322,240EISAI CO LTD 287,300 11,699,084ELECTROLUX AB SER B 500,000 12,549,171ELECTRONIC ARTS INC 430,000 9,877,100ELI LILLY + CO 2,422,496 118,993,004ELIZABETH ARDEN INC 50,000 2,253,500EMAGIN CORPORATION 130,000 462,800EMC CORP/MA 1,900,000 44,878,000EMERITUS CORP 15,000 347,700EMMIS COMMUNICATIONS CLASS A 1,420,000 3,038,800EMPRESA NAC ELEC CHIL SP ADR 172,200 7,606,074EMPRESAS ICA S.A.B 1,482,077 2,787,602ENANTA PHARMACEUTICALS INC 112,500 1,992,375ENBRIDGE INC 852,684 35,733,598ENCANA CORP 1,211,247 20,425,692ENEL SPA 3,870,432 12,124,657ENERGEN CORP 70,000 3,658,200ENERGIZER HOLDINGS INC 519,000 52,164,690ENERGY FOCUS INC 668,600 274,126ENERPLUS CORP 64,100 944,229ENSCO PLC CL A 75,000 4,359,000




Equities

June 30, 2013



ENTERCOM COMMUNICATIONS CL A 1,520,000 $14,348,800ENTERGY CORP 194,000 13,517,920ENTRAVISION COMMUNICATIONS A 2,080,000 12,792,000ENTROPIC COMMUNICATIONS INC 500,000 2,135,000ENZON PHARMACEUTICALS INC 60,000 120,000EOG RESOURCES INC 214,000 28,179,520EPR PROPERTIES 1,870,000 94,004,900EQT CORP 120,000 9,524,400EQUITY LIFESTYLE PROPERTIES 38,000 2,986,420EQUITY ONE INC 135,802 3,073,199EQUITY RESIDENTIAL 167,900 9,748,274ERICSSON LM B SHS 2,042,576 22,984,635ERSTE GROUP BANK AG 239,324 6,378,800ESPIRITO SANTO FINL GROUP SA 1,991,971 13,575,500ESSEX PROPERTY TRUST INC 104,050 16,535,626ESSILOR INTERNATIONAL 624,960 66,401,797ESTEE LAUDER COMPANIES CL A 280,000 18,415,600EURASIA DRILLIN GDR 162,929 6,082,140EUROCASH SA 15,189 267,638EVA PRECISION INDUSTRIAL HLD 14,000,000 1,895,221EVEREST RE GROUP LTD 195,000 25,010,700EXA CORP 520,000 5,356,000EXELON CORP 1,687,680 52,115,558EXPERIAN PLC 1,081,326 18,745,744EXPRESS INC 105,000 2,201,850EXPRESS SCRIPTS HOLDING CO 820,000 50,585,800EXXON MOBIL CORP 5,300,000 478,855,000FACEBOOK INC A 2,300,000 57,178,000FAIRCHILD SEMICONDUCTOR INTE 300,000 4,140,000FAMILY DOLLAR STORES 43,000 2,679,330FANUC CORP 206,525 29,897,111FAR EASTONE TELECOM GDR 39,727 1,600,557FARO TECHNOLOGIES INC 75,000 2,536,500FAST RETAILING CO LTD 89,900 30,272,865FEDERAL REALTY INVS TRUST 25,500 2,643,840FEDERAL SIGNAL CORP 341,000 2,983,750FEDERATION CENTRES 650,000 1,410,097FEDEX CORP 860,000 84,778,800FELCOR LODGING TRUST INC 120,000 709,200FERROVIAL SA 382,316 6,102,585FIAT INDUSTRIAL 552,298 6,148,849FIAT SPA 918,183 6,409,092FIBRA UNO ADMINISTRACION SA 1,061,600 3,546,042FIFTH + PACIFIC COS INC 400,000 8,936,000FINANCIAL ENGINES INC 107,087 4,882,096FINISAR CORPORATION 275,000 4,661,250FIRST CAPITAL REALTY INC 75,000 1,269,017FIRST INDUSTRIAL REALTY TR 50,000 758,500FIRST QUANTUM MINERALS LTD 565,917 8,368,458FIRSTENERGY CORP 423,580 15,816,477FISCHER 22,000 9,690,324




Equities

June 30, 2013



FIVE BELOW 1,000,000 $36,760,000FLOWERS FOODS INC 303,750 6,697,688FLUOR CORP 800,000 47,448,000FMC CORP 295,000 18,012,700FMC TECHNOLOGIES INC 199,832 11,126,646FOMENTO ECONOMICO MEX SP ADR 173,500 17,903,465FOOT LOCKER INC 365,000 12,822,450FORD MOTOR CO 3,000,000 46,410,000FOREST CITY ENTERPRISES CL A 319,480 5,721,887FOREST LABORATORIES INC 779,400 31,955,400FOREST OIL CORP 705,000 2,883,450FORMFACTOR INC 650,000 4,387,500FORTIS INC 369,700 11,280,765FORTUM OYJ 464,108 8,687,094FOSSIL GROUP INC 42,000 4,339,020FRANCESCAS HOLDINGS CORP 40,100 1,114,379FRASER AND NEAVE LTD 280,655 1,898,620FREEPORT MCMORAN COPPER 150,000 4,141,500FRESENIUS MEDICAL CARE AG 132,106 9,363,776FRESENIUS SE + CO KGAA 80,050 9,854,853FUBON FINANCIAL HOL GDR 437,965 5,868,731FUGRO NV CVA 119,559 6,472,771FUJI HEAVY INDUSTRIES LTD 1,523,000 37,486,636FUJIFILM HOLDINGS CORP 443,300 9,750,949FURIEX PHARMACEUTICALS 22,916 780,748G III APPAREL GROUP LTD 314,236 15,121,036GALAXY ENTERTAINMENT GROUP 1,782,000 8,695,933GALP ENERGIA SGPS SA 700,000 10,350,049GAMESTOP CORP CLASS A 70,000 2,942,100GAMUDA BHD 5,210,700 7,817,287GAP INC/THE 200,000 8,346,000GARTNER INC 100,000 5,699,000GAZIT GLOBE LTD 112,500 1,490,625GDF SUEZ 829,177 16,215,577GEA GROUP AG 160,955 5,696,985GEBERIT AG 56,441 13,976,776GENERAC HOLDINGS INC 1,000,000 37,010,000GENERAL DYNAMICS CORP 750,000 58,747,500GENERAL ELECTRIC CO 8,500,000 197,115,000GENERAL GROWTH PROPERTIES 482,825 9,593,733GENERAL MILLS INC 511,720 24,833,772GENERAL MOTORS CO 1,401,828 46,694,891GENESCO INC 60,500 4,052,895GENESEE + WYOMING INC CL A 180,000 15,271,200GENTING SINGAPORE PLC 4,243,000 4,415,958GENUINE PARTS CO 150,000 11,710,500GERRESHEIMER AG 105,000 6,073,545GIGAMON INC 10,000 275,600GILEAD SCIENCES INC 2,460,000 125,976,600GIVAUDAN 56,115 72,297,400GLADSTONE COMMERCIAL CORP 50,000 932,000




Equities

June 30, 2013



GLADSTONE LAND CORP 90,000 $1,523,700GLAXOSMITHKLINE PLC 4,761,385 119,011,877GLENCORE XSTRATA PLC 5,865,436 24,210,761GLIMCHER REALTY TRUST 210,000 2,293,200GLOBAL LOGISTIC PROPERTIES 3,843,000 8,332,611GLOBAL MEDIACOM TBK PT 10,745,000 2,327,632GLP J REIT 10,000 9,764,937GMAC CAPITAL TRUST 40,000 1,042,000GNC HOLDINGS INC CL A 110,750 4,896,258GOL LINHAS AEREAS INTEL ADR 1,106,449 3,706,604GOLDCORP INC 615,003 15,227,147GOLDEN AGRI RESOURCES LTD 4,370,000 1,929,512GOLDMAN SACHS GROUP INC 406,500 61,483,125GOODMAN GROUP 2,499,362 11,164,423GOODYEAR TIRE + RUBBER CO 775,000 11,849,750GOOGLE INC CL A 364,000 320,454,680GPT GROUP 2,624,471 9,224,871GRAMERCY PROPERTY TRUST INC 55,000 247,500GRASIM INDUSTRIES 29,900 1,388,658GREAT PLAINS ENERGY INC 100,000 2,254,000GREAT PORTLAND ESTATES PLC 125,000 1,007,658GREATBATCH INC 140,000 4,590,600GREIF INC CL B 62,000 3,475,720GROUP 1 AUTOMOTIVE INC 111,000 7,140,630GROUPE BRUXELLES LAMBERT SA 78,041 5,864,335GROUPE FNAC 55,995 145,788GRUPO AEROPORTUARIO SUR ADR 18,700 2,080,188GRUPO FIN SANTANDER ADR B 744,522 10,579,658GRUPO FINANCIERO BANORTE O 690,600 4,103,566GRUPO MEXICO SAB DE CV 3,608,224 10,387,683GRUPO TELEVISA SA SPON ADR 375,385 9,324,563GS RETAIL CO LTD 113,760 2,918,583GUDANG GARAM TBK PT 1,442,500 7,354,207H+R REAL ESTATE INVESTMENT REIT 95,592 1,997,107HACI OMER SABANCI HOLDING 2,318,198 12,195,035HAITONG SECURITIES CO LTD 3,144,000 3,810,246HALLIBURTON CO 1,808,948 75,469,311HAMMERSON PLC 304,924 2,253,657HANESBRANDS INC 152,000 7,815,840HANG LUNG PROPERTIES LTD 1,353,598 4,720,626HANG SENG BANK LTD 275,000 4,066,668HANWHA LIFE INSURANCE CO LTD 2,677,682 15,427,650HARMONIC INC 200,000 1,270,000HARRIS CORP 100,000 4,925,000HARSCO CORP 380,000 8,812,200HARTFORD FINANCIAL SVCS GRP 140,000 4,328,800HARUM ENERGY TBK PT 8,351,500 2,545,419HASBRO INC 220,000 9,862,600HAUPPAUGE DIGITAL INC 300,000 207,000HAWAIIAN ELECTRIC INDS 100,000 2,531,000HCP INC 271,000 12,314,240




Equities

June 30, 2013



HDFC BANK LTD ADR 500,280 $18,130,147HEALTH CARE REIT INC 139,500 9,350,685HEALTH MGMT ASSOCIATES INC A 270,000 4,244,400HEALTH NET INC 105,000 3,341,100HEALTHCARE SERVICES GROUP 50,000 1,226,000HEALTHCARE TRUST OF AME CL A 80,000 898,400HEARTWARE INTERNATIONAL INC 15,000 1,426,650HECLA MINING CO 1,750,000 5,215,000HEICO CORP CLASS A 195,312 7,208,966HEIDELBERGCEMENT AG 489,546 32,879,480HEIDRICK + STRUGGLES INTL 97,000 1,621,840HEINEKEN HOLDING NV 126,604 7,093,622HEINEKEN NV 139,125 8,852,193HELIX ENERGY SOLUTIONS GROUP 100,000 2,304,000HELMERICH + PAYNE 94,600 5,907,770HENDERSON LAND DEVELOPMENT 1,584,669 9,490,015HENKEL AG + CO KGAA VORZUG 116,489 10,939,960HENNES + MAURITZ AB 683,001 22,303,065HENRY SCHEIN INC 115,000 11,011,250HERSHA HOSPITALITY TRUST 1,190,000 6,711,600HESS CORP 1,015,000 67,487,350HEWLETT PACKARD CO 2,700,000 66,960,000HEXAGON AB 250,700 6,659,877HEXCEL CORP 300,000 10,215,000HIBBETT SPORTS INC 25,000 1,387,500HILLSHIRE BRANDS CO 1,121,200 37,089,296HISAMITSU PHARMACEUTICAL CO 163,800 8,310,787HITACHI LTD 3,575,279 22,926,992HOLCIM LTD 419,225 29,177,156HOLLYFRONTIER CORP 1,095,000 46,844,100HOLOGIC INC 161,200 3,111,160HOME DEPOT INC 2,069,000 160,285,430HOME PROPERTIES INC 15,500 1,013,235HON HAI PRECISION GDR 3,203,687 15,601,956HONDA MOTOR CO LTD 1,622,333 60,183,189HONEYWELL INTERNATIONAL INC 700,000 55,538,000HONG KONG + CHINA GAS 5,359,484 13,100,984HONG KONG EXCHANGES + CLEAR 865,813 13,071,445HORIZON LINES INC CL A 225,008 303,761HOSPIRA INC 226,100 8,661,891HOST HOTELS + RESORTS INC 50,000 843,500HOTEL SHILLA CO LTD 78,029 4,167,741HOWARD HUGHES CORP/THE 47,204 5,291,096HOYA CORP 1,247,768 25,737,924HSBC HOLDINGS PLC 11,092,504 114,739,715HUABAO INTERNATIONAL HOLDING 11,804,700 5,220,255HUANENG POWER INTL INC H 3,058,000 3,039,726HUDSON PACIFIC PROPERTIES IN 220,000 4,681,600HUFVUDSTADEN AB A SHS 190,000 2,257,665HUNTSMAN CORP 1,200,000 19,872,000HUTCHISON PORT HOLDINGS TR U 7,000,000 5,145,000




Equities

June 30, 2013



HUTCHISON WHAMPOA LTD 2,123,000 $22,321,150HYPERMARCAS SA 737,100 4,848,266HYUNDAI ENGINEERING + CONST 149,578 7,321,405HYUNDAI GLOVIS CO LTD 33,134 5,613,965HYUNDAI MOBIS CO LTD 101,475 24,256,972HYUNDAI MOTOR CO 91,299 18,027,166IAC/INTERACTIVECORP 500,000 23,780,000IAMGOLD CORP 211,052 884,260IBERDROLA SA 3,819,834 20,138,885ICICI BANK LTD SPON ADR 361,526 13,828,370ICONIX BRAND GROUP INC 200,000 5,882,000IDACORP INC 40,000 1,910,400IDEMITSU KOSAN CO LTD 29,900 2,296,643IGM FINANCIAL INC 123,826 5,292,492IHH HEALTHCARE BHD 4,461,000 5,577,132IJM CORP BHD 4,532,500 8,105,278ILUKA RESOURCES LTD 320,535 2,931,084IMMOFINANZ AG 1,377,090 5,137,327IMPERIAL HOLDINGS LTD 434,235 9,179,684IMPERIAL TOBACCO GROUP PLC 588,054 20,335,359INCYTE CORP 175,000 3,850,000INDITEX 161,486 19,907,623INDOSAT TBK PT 16,337,500 8,642,003INDUSTRIAL + INFRASTRUCTURE 50 485,730INFINEON TECHNOLOGIES AG 1,235,229 10,324,082INFORMATICA CORP 560,000 19,588,800INFOSYS LTD SP ADR 376,955 15,526,776ING GROEP NV CVA 4,015,626 36,537,958INGERSOLL RAND PLC 150,000 8,328,000INGREDION INC 300,000 19,686,000INPEX CORP 2,021 8,422,953INSURANCE AUSTRALIA GROUP 1,486,265 7,400,864INTACT FINANCIAL CORP 149,064 8,372,001INTEGRATED DEVICE TECH INC 650,000 5,161,000INTEGRATED SILICON SOLUTION 29,870 327,375INTEGRYS ENERGY GROUP INC 27,500 1,609,575INTEL CORP 3,200,000 77,504,000INTERCONTINENTAL HOTELS GROU 401,675 11,014,709INTERDIGITAL INC 50,000 2,232,500INTERMUNE INC 190,000 1,827,800INTERNAP NETWORK SERVICES 400,000 3,308,000INTERTEK GROUP PLC 267,205 11,846,040INTESA SANPAOLO 8,046,233 12,874,893INTL BUSINESS MACHINES CORP 1,120,000 214,043,200INTL CONTAINER TERM SVCS INC 3,355,730 6,758,067INTL GAME TECHNOLOGY 125,000 2,088,750INVENSENSE INC 200,000 3,076,000INVESTA OFFICE FUND 250,000 665,917INVESTMENT AB KINNEVIK B SHS 323,325 8,234,681INVESTOR AB B SHS 262,979 7,025,034ION GEOPHYSICAL CORP 275,000 1,655,500




Equities

June 30, 2013



IPG PHOTONICS CORP 300,000 $18,219,000IROBOT CORP 20,000 795,400IRON MOUNTAIN INC 83,108 2,211,504ISHARES CORE MSCI EMERGING MAR 2,325,000 107,089,500ISHARES GOLD TRUST 10,656,400 127,770,236ISHARES IBOXX HIGH YIELD COR 80,000 7,268,800ISHARES INTERNATIONAL INFLATIO 100,000 4,539,000ISHARES JP MORGAN USD EMERGING 90,000 9,857,700ISHARES MSCI BRAZIL CAPPED ETF 300,000 13,158,000ISHARES MSCI EAFE ETF 2,200,000 126,236,000ISHARES MSCI EMERGING MARKETS 2,550,000 145,630,500ISHARES MSCI EMERGING MARKETS 22,954,600 885,358,922ISHARES MSCI INDIA INDEX ETF 4,002,761 23,095,931ISHARES MSCI TAIWAN ETF 754,459 10,034,305ISHARES S+P BSE SENSEX INDIA I 6,442,600 11,960,966ISHARES S+P/TSX 60 INDEX FUND 1,200,000 19,860,657ISIS PHARMACEUTICALS INC 60,000 1,612,200ISUZU MOTORS LTD 933,000 6,377,480ITAU UNIBANCO HLDNG PREF ADR 460,310 5,947,205ITC LTD GDR 2,187,298 11,918,587ITOCHU CORP 1,181,000 13,612,976IXIA 325,000 5,980,000J + J SNACK FOODS CORP 405,000 31,509,000J.C. PENNEY CO INC 160,000 2,732,800JABIL CIRCUIT INC 100,000 2,038,000JAPAN HOTEL REIT INVESTMENT 5,000 1,887,552JAPAN REAL ESTATE INVESTMENT 920 10,252,580JAPAN TOBACCO INC 752,500 26,551,694JARDEN CORP 397,500 17,390,625JARDINE CYCLE + CARRIAGE LTD 78,897 2,644,415JARDINE MATHESON HLDGS LTD 22,181 1,341,951JAVELIN MORTGAGE INVESTMENT 40,000 563,600JDS UNIPHASE CORP 325,000 4,673,500JERONIMO MARTINS 413,343 8,698,621JFE HOLDINGS INC 430,400 9,432,534JGC CORP 226,000 8,122,213JM SMUCKER CO/THE 67,056 6,916,826JOHNSON + JOHNSON 3,250,000 279,045,000JOHNSON CONTROLS INC 300,000 10,737,000JONES GROUP INC/THE 603,502 8,298,153JPMORGAN CHASE + CO 6,105,000 322,282,950JSL SA 124,100 816,828JSR CORP 700,000 14,136,004JULIUS BAER GROUP LTD 278,251 10,848,892JUNIPER NETWORKS INC 1,000,000 19,310,000JX HOLDINGS INC 2,337,549 11,318,881K S AG 80,870 2,985,900KABEL DEUTSCHLAND HOLDING AG 93,468 10,251,690KALBE FARMA TBK PT 48,994,500 7,108,522KANSAI ELECTRIC POWER CO INC 534,100 7,307,011KANSAS CITY SOUTHERN 700,000 74,172,000




Equities

June 30, 2013



KAO CORP 369,900 $12,567,700KASIKORNBANK PCL FOREIGN 761,000 4,686,474KAWASAKI HEAVY INDUSTRIES 2,276,000 6,988,272KAYNE ANDERSON MLP INVST 40,000 988,400KB FINANCIAL GROUP INC 678,115 20,306,933KBC GROEP NV 191,113 7,105,999KBR INC 650,000 21,125,000KDDI CORP 381,800 19,832,768KEIKYU CORP 1,123,000 9,632,013KEIO CORP 724,000 4,970,735KELLOGG CO 305,000 19,590,150KEPPEL CORP LTD 2,045,000 16,768,903KEPPEL LAND LTD 164,000 433,178KEPPEL REIT 7,488,999 7,646,656KERING 55,995 11,365,387KERRY GROUP PLC A 192,043 10,584,182KEYENCE CORP 29,100 9,271,808KEYW HOLDING CORP/THE 50,000 662,500KFORCE INC 285,000 4,161,000KID BRANDS INC 570,000 877,800KILLAM PROPERTIES INC 128,745 1,305,817KILROY REALTY CORP 84,000 4,452,840KIMBERLY CLARK CORP 275,000 26,713,500KIMBERLY CLARK DE MEXICO A 4,478,100 14,610,889KIMCO REALTY CORP 428,000 9,223,040KINDER MORGAN INC 1,637,735 49,569,881KINDRED HEALTHCARE INC 500,000 6,565,000KINGFISHER PLC 2,722,376 14,162,569KINROSS GOLD CORP 1,427,388 7,292,878KINTETSU CORP 2,273,000 9,976,625KIRBY CORP 200,000 15,908,000KIRIN HOLDINGS CO LTD 673,198 10,531,532KLA TENCOR CORPORATION 100,000 5,573,000KOBE STEEL LTD 1,272,000 1,575,034KOC HOLDING AS 3,996,733 19,181,501KOHLS CORP 38,000 1,919,380KOMATSU LTD 957,639 22,105,665KOMERCNI BANKA AS 17,804 3,305,443KONE OYJ B 132,474 10,512,580KONECRANES OYJ 163,817 4,665,458KONINKLIJKE DSM NV 98,591 6,415,361KONINKLIJKE KPN NV 3,113,869 6,463,954KONINKLIJKE PHILIPS NV 1,227,413 33,416,739KOPPERS HOLDINGS INC 510,000 19,471,800KORN/FERRY INTERNATIONAL 65,600 1,229,344KRAFT FOODS GROUP INC 664,387 37,119,302KROGER CO 551,000 19,031,540KT CORP 50,210 1,573,940KT+G CORP 301,997 19,621,013KUBOTA CORP 1,257,000 18,323,209KUEHNE + NAGEL INTL AG 50,000 5,480,104




Equities

June 30, 2013



KYOCERA CORP 147,459 $14,993,063KYOWA HAKKO KIRIN CO LTD 686,000 7,748,447L 3 COMMUNICATIONS HOLDINGS 760,000 65,162,400L BRANDS INC 65,000 3,201,250L OREAL 163,699 26,863,982L OREAL PRIME DE FIDELITE 752,177 123,436,731LA Z BOY INC 135,000 2,736,450LAFARGE SA 129,057 7,924,729LAM RESEARCH CORP 300,000 13,302,000LAND + HOUSES PUB NVDR 23,622,700 8,606,691LAND SECURITIES GROUP PLC 458,142 6,142,599LAREDO PETROLEUM HOLDINGS IN 80,000 1,652,000LARSEN + TOUB UNSP GDR 209,102 4,915,988LAS VEGAS SANDS CORP 594,000 31,440,420LASALLE HOTEL PROPERTIES 78,204 1,931,639LEAPFROG ENTERPRISES INC 80,000 787,200LEG IMMOBILIEN AG 26,500 1,377,840LEGAL + GENERAL GROUP PLC 5,873,628 15,269,227LEGG MASON INC 1,180,000 36,591,800LEGRAND SA 288,685 13,373,802LENNAR CORP B SHS 50,000 1,417,500LENNAR CORP A 262,000 9,442,480LENOVO GROUP LTD 5,684,000 5,181,030LEXINGTON REALTY TRUST 50,000 584,000LG CHEM LTD 23,574 5,222,383LG DISPLAY CO LTD 87,760 2,109,375LG ELECTRONICS INC 49,940 3,192,172LG HOUSEHOLD + HEALTH CARE 9,847 4,811,196LG UPLUS CORP 505,410 5,288,428LI + FUNG LTD 10,682,926 14,654,616LIFE HEALTHCARE GROUP HOLDIN 2,116,920 7,996,666LIFE TECHNOLOGIES CORP 132,608 9,814,318LIFEPOINT HOSPITALS INC 271,164 13,243,650LIGAND PHARMACEUTICALS CL B 32,331 1,209,826LIMELIGHT NETWORKS INC 280,000 630,000LIMONEIRA CO 185,000 3,835,050LINCOLN NATIONAL CORP 1,450,000 52,881,500LINDAB INTERNATIONAL AB 371,569 2,937,011LINDE AG 211,273 39,367,213LINDT + SPRUENGLI AG 142 6,177,371LINK REIT 1,561,000 7,687,920LIONS GATE ENTERTAINMENT COR 140,000 3,845,800LIPOSCIENCE INC 45,000 314,550LIPPO KARAWACI TBK PT 56,786,000 8,696,697LITE ON TECHNOLOGY CORP GDR 178,041 2,492,574LIVEPERSON INC 520,000 4,656,600LLOYDS BANKING GROUP PLC 28,192,465 27,006,914LMI AEROSPACE INC 80,000 1,499,200LOGITECH INTERNATIONAL 3,250,000 22,361,676LOJACK CORPORATION 460,000 1,449,000LONE PINE RESOURCES INC 251,118 82,869




Equities

June 30, 2013



LOTTE CHEMICAL CORP 21,773 $2,726,272LOUISIANA PACIFIC CORP 700,000 10,353,000LOWE S COS INC 965,000 39,468,500LSI CORP 750,000 5,355,000LT GROUP INC 7,007,400 3,665,908LUKOIL OAO SPON ADR 527,771 30,339,535LVMH MOET HENNESSY LOUIS VUI 172,112 27,853,096LYONDELLBASELL INDU CL A 800,000 53,008,000MACERICH CO/THE 10,000 609,700MACQUARIE GROUP LTD 185,625 7,114,211MACQUARIE INFRASTRUCTURE CO 75,000 4,008,750MACQUARIE MEXICO REAL ESTATE 1,693,146 3,639,539MACY S INC 385,000 18,480,000MAGNA INTERNATIONAL INC 194,476 13,800,155MAGNIT OJSC SPON GDR 298,559 17,077,575MAIL.RU GROUP GDR 388,878 11,145,243MAKITA CORP 131,700 7,106,377MANHATTAN ASSOCIATES INC 50,000 3,858,000MANPOWERGROUP INC 50,000 2,740,000MANULIFE FINANCIAL CORP 1,223,800 19,523,725MARATHON OIL CORP 411,644 14,234,650MARATHON PETROLEUM CORP 640,000 45,478,400MARIN SOFTWARE INC 40,000 409,600MARKET VECTORS AGRIBUSINESS ETF 156,862 8,029,766MARKET VECTORS GOLD MINERS ETF 590,000 14,401,900MARKS + SPENCER GROUP PLC 1,634,991 10,680,462MARRIOTT INTERNATIONAL CL A 218,705 8,829,121MARSH + MCLENNAN COS 260,000 10,379,200MARTIN MARIETTA MATERIALS 125,000 12,302,500MARUBENI CORP 1,814,771 12,112,480MASTEC INC 1,050,000 34,545,000MASTERCARD INC CLASS A 75,000 43,087,500MATAHARI DEPARTMENT STORE TB 5,556,500 6,494,247MATTEL INC 1,260,000 57,090,600MATTRESS FIRM HOLDING CORP 20,000 806,000MCCORMICK + CO NON VTG SHRS 245,000 17,238,200MCDERMOTT INTL INC 5,500,000 44,990,000MCDONALD S CORP 814,913 80,676,387MCKESSON CORP 681,250 78,003,125MDC HOLDINGS INC 90,000 2,925,900MDU RESOURCES GROUP INC 175,000 4,534,250MEAD JOHNSON NUTRITION CO 149,026 11,807,330MEADWESTVACO CORP 250,000 8,527,500MEDIATEK INC 30,420 353,721MEDIOBANCA SPA 1,004,322 5,221,869MEDIVIR AB B SHS 425,000 4,124,410MEDTRONIC INC 810,000 41,690,700MEGAFON GDR 101,222 3,163,188MEGAFON GDR 262,451 8,201,594MEGAFON OAO 144A GDR 491,200 15,286,144MEIJI HOLDINGS CO LTD 187,900 9,013,374




Equities

June 30, 2013



MELIA HOTELS INTERNATIONAL 1,250,000 $9,472,651MENTOR GRAPHICS CORP 260,000 5,083,000MERCANTILE BANK CORP 52,339 940,532MERCK + CO. INC. 6,570,000 305,176,500MERIDIAN BIOSCIENCE INC 50,000 1,075,000METLIFE INC 2,314,248 105,899,988METRO AG 35,558 1,124,071METRO INC 158,100 10,562,480METRO PACIFIC INVESTMENTS CO 78,346,100 9,575,634METROPOLITAN BANK + TRUST 963,948 2,476,811MEXICHEM SAB DE CV 1,446,207 5,965,423MFA FINANCIAL INC 100,000 845,000MICHAEL BAKER CORP 480,000 13,012,800MICHELIN (CGDE) 114,509 10,225,613MICROCHIP TECHNOLOGY INC 300,000 11,175,000MICRON TECHNOLOGY INC 1,800,000 25,794,000MICROSEMI CORP 200,000 4,550,000MICROSOFT CORP 11,650,000 402,274,500MICROSTRATEGY INC CL A 35,000 3,043,600MID AMERICA APARTMENT COMM 60,450 4,096,697MIDDLESEX WATER CO 170,268 3,391,739MIGROS TICARET A.S 282,302 2,889,665MILLICOM INTL CELLULAR SDR 28,026 2,005,995MILLS ESTRUTURAS E SERVICOS 82,400 1,126,866MINE SAFETY APPLIANCES CO 170,000 7,913,500MINOR INTERNATIONAL PCL FOR 4,786,000 3,826,948MIRVAC GROUP 500,000 734,569MITSUBISHI CHEMICAL HOLDINGS 1,909,500 8,957,840MITSUBISHI CORP 1,003,624 17,165,724MITSUBISHI ELECTRIC CORP 1,532,470 14,331,954MITSUBISHI ESTATE CO LTD 1,522,000 40,465,113MITSUBISHI HEAVY INDUSTRIES 2,739,000 15,192,923MITSUBISHI MATERIALS CORP 1,246,000 4,377,651MITSUBISHI TANABE PHARMA 87,000 1,125,434MITSUBISHI UFJ FINANCIAL GRO 8,476,200 52,221,618MITSUI FUDOSAN CO LTD 2,106,421 61,855,641MITSUI OSK LINES LTD 1,200,000 4,675,089MIZUHO FINANCIAL GROUP INC 20,319,520 42,138,432MMC NORILSK NICKEL JSC ADR 269,079 3,877,428MOBILE TELESYSTEMS SP ADR 1,581,800 29,959,292MODEL N INC 130,000 3,036,800MOHAWK INDUSTRIES INC 9,000 1,012,410MOLESKINE SPA 5,500,000 12,475,303MOLEX INC CL A 100,000 2,486,000MOLSON COORS BREWING CO B 220,000 10,529,200MOLYCORP INC 225,000 1,395,000MONDELEZ INTERNATIONAL INC 1,993,163 56,864,940MONDI PLC 1,053,300 13,112,138MONEYGRAM INTERNATIONAL INC 50,000 1,132,500MONRO MUFFLER BRAKE INC 10,000 480,500MONSANTO CO 541,500 53,500,200




Equities

June 30, 2013



MONSTER BEVERAGE CORP 170,000 $10,330,900MORGAN STANLEY 850,000 20,765,500MORGAN STANLEY INDIA INVESTMENT 497,869 7,672,161MOSAIC CO/THE 1,040,000 55,962,400MOVE INC 540,000 6,922,800MS+AD INSURANCE GROUP HOLDIN 278,800 7,078,407MSC INDUSTRIAL DIRECT CO A 50,000 3,873,000MSCI INC 50,000 1,663,500MTR CORP 944,889 3,459,726MUENCHENER RUECKVER AG 128,466 23,611,881MURATA MANUFACTURING CO LTD 136,538 10,377,630MURPHY OIL CORP 482,000 29,348,980MURRAY + ROBERTS HOLDINGS 92,907 235,187MWI VETERINARY SUPPLY INC 60,000 7,394,400MYLAN INC 1,433,255 44,473,903NABORS INDUSTRIES LTD 1,475,000 22,582,250NASPERS LTD N SHS 331,506 24,377,406NATIONAL AUSTRALIA BANK LTD 1,460,961 39,690,797NATIONAL BANK OF CANADA 124,400 8,848,738NATIONAL CINEMEDIA INC 880,000 14,863,200NATIONAL FUEL GAS CO 102,500 5,939,875NATIONAL GRID PLC 2,194,510 24,829,970NATIONAL OILWELL VARCO INC 320,000 22,048,000NATIONAL RETAIL PROPERTIES 42,500 1,462,000NATURA COSMETICOS SA 704,909 15,221,095NAVISTAR INTERNATIONAL CORP 840,000 23,318,400NB PVT EQUITY PTRS LTD 2,475,000 22,497,750NCSOFT CORPORATION 68,332 9,692,907NEDBANK GROUP LTD 630,572 11,149,599NEKTAR THERAPEUTICS 105,000 1,212,750NESTLE SA 2,016,908 132,058,818NETAPP INC 850,000 32,113,000NETEASE INC ADR 261,600 16,525,272NETSCOUT SYSTEMS INC 80,000 1,867,200NEW GOLD INC 773,600 4,993,806NEW JERSEY RESOURCES CORP 45,000 1,868,850NEW YORK COMMUNITY BANCORP 296,331 4,148,634NEWCREST MINING LTD 884,737 7,993,163NEWELL RUBBERMAID INC 800,000 21,000,000NEWFIELD EXPLORATION CO 522,000 12,470,580NEWMONT MINING CORP 150,000 4,492,500NEWPARK RESOURCES INC 1,140,000 12,528,600NEXT PLC 122,811 8,490,072NEXTERA ENERGY INC 850,000 69,258,000NGK INSULATORS LTD 106,000 1,312,528NHN CORP 40,937 10,413,028NIC INC 500,000 8,265,000NIDEC CORP 133,190 9,278,450NIKE INC CL B 447,000 28,464,960NIKON CORP 191,800 4,467,964NINTENDO CO LTD 98,400 11,589,873




Equities

June 30, 2013



NIPPON BUILDING FUND INC 597 $6,899,441NIPPON PROLOGIS REIT INC 330 2,866,965NIPPON STEEL + SUMITOMO META 4,268,539 11,516,268NIPPON TELEGRAPH + TELEPHONE 304,556 15,758,976NIPPON YUSEN 1,678,000 4,442,684NISOURCE INC 266,000 7,618,240NISSAN MOTOR CO LTD 4,508,656 45,615,335NITORI HOLDINGS CO LTD 350,000 28,187,447NITTO DENKO CORP 116,200 7,463,190NKSJ HOLDINGS INC 260,400 6,199,688NOBEL BIOCARE HOLDING AG 350,000 4,254,082NOBLE CORP 50,000 1,879,000NOBLE ENERGY INC 328,000 19,693,120NOBLE GROUP LTD 2,519,631 1,927,022NOKIA OYJ 3,263,742 12,073,792NOKIAN RENKAAT OYJ 400,000 16,279,312NOMURA HOLDINGS INC 2,578,600 18,975,755NORDEA BANK AB 1,558,433 17,317,333NORDSTROM INC 180,000 10,789,200NORFOLK SOUTHERN CORP 650,000 47,222,500NORTHEAST UTILITIES 125,500 5,273,510NORTHERN TRUST CORP 203,000 11,753,700NORTHSTAR REALTY FIN 20,000 507,000NORTHSTAR REALTY FINANCE COR 313,128 2,849,465NOVARTIS AG 1,555,056 110,282,997NOVATEK OAO SPONS GDR 24,446 2,921,297NOVATEL WIRELESS INC 30,000 118,500NOVO NORDISK A/S B 244,043 37,979,209NOVOZYMES A/S B SHARES 175,957 5,623,853NRG ENERGY INC 439,720 11,740,524NSK LTD 215,000 2,054,009NTN BUZZTIME INC 500,000 205,000NTT DOCOMO INC 10,483 16,262,448NUANCE COMMUNICATIONS INC 1,400,000 25,732,000NUSTAR LOGISTICS LP 20,000 523,126NUTRECO NV 200,000 8,488,015NUVERRA ENVIRONMENTAL SOLUTI 2,800,000 8,120,000NV ENERGY INC 180,000 4,222,800NVE CORP 20,000 936,400NVIDIA CORP 1,000,000 14,030,000NVR INC 30,000 27,660,000NXSTAGE MEDICAL INC 76,700 1,095,276O REILLY AUTOMOTIVE INC 38,000 4,279,560OCCIDENTAL PETROLEUM CORP 640,000 57,107,200OCEANEERING INTL INC 106,000 7,653,200OCLARO INC 350,000 413,000ODAKYU ELECTRIC RAILWAY CO 719,000 7,006,513OGE ENERGY CORP 25,000 1,705,000OHL MEXICO SAB DE CV 541,500 1,280,392OIL + GAS DEVELOPMENT CO LTD 1,912,349 4,382,066OLD DOMINION FREIGHT LINE 25,000 1,040,500




Equities

June 30, 2013



OLD MUTUAL PLC 4,812,645 $13,189,908OMNICARE INC 95,000 4,532,450OMNICOM GROUP 100,000 6,287,000OMRON CORP 220,000 6,537,877OMTHERA PHARMACEUTICALS INC 80,000 1,064,000OMV AG 152,869 6,895,121ON SEMICONDUCTOR CORPORATION 250,000 2,020,000ONEOK INC 993,000 41,020,830ONEX CORPORATION 594,703 26,901,016ONO PHARMACEUTICAL CO LTD 293,001 19,850,976ONYX PHARMACEUTICALS INC 40,000 3,472,800OPEN TEXT CORP 91,900 6,263,434ORACLE CORP 3,600,000 110,592,000ORANGE S.A. 1,501,998 14,189,832ORASCOM CONSTRUCTION INDS 273,782 9,360,935ORICA LTD 193,016 3,648,385ORIENTAL LAND CO LTD 72,500 11,195,953ORIFLAME COSMETICS SA SDR 222,276 6,991,562ORIGIN ENERGY LTD 974,492 11,212,459ORION CORP 3,655 3,049,967ORIX CORP 826,800 11,278,140ORKLA ASA 670,831 5,466,799ORMAT TECHNOLOGIES INC 140,000 3,292,800ORPEA 100,000 4,618,364OSAKA GAS CO LTD 1,128,000 4,757,960OSI SYSTEMS INC 100,000 6,442,000OTP BANK PLC 1,000,298 20,991,149OTSUKA HOLDINGS CO LTD 377,100 12,432,702OVERSEA CHINESE BANKING CORP 2,208,800 17,415,438OXFORD INDUSTRIES INC 42,000 2,620,800P G + E CORP 413,000 18,886,490PACER INTERNATIONAL INC 1,150,000 7,256,500PACIFIC RUBIALES ENERGY CORP 193,100 3,380,783PAKISTAN PETROLEUM LTD 2,636,876 5,589,117PALO ALTO NETWORKS INC 600,000 25,296,000PANASONIC CORP 1,738,200 13,946,196PANTRY INC 120,000 1,461,600PARADISE CO LTD 327,926 6,647,246PARKE BANCORP INC 103,857 790,348PARKWAY PROPERTIES INC 131,500 2,203,940PATTERSON UTI ENERGY INC 121,000 2,341,955PCM INC 190,000 1,824,000PDG REALTY SA 2,656,400 2,537,292PDL BIOPHARMA INC 245,000 1,891,400PEABODY ENERGY CORP 2,925,000 42,822,000PEARSON PLC 823,983 14,634,401PEBBLEBROOK HOTEL TRUST 482,934 12,483,844PEGATRON CORP GDR 493,991 4,060,606PEMBINA PIPELINE CORP 275,600 8,406,852PENN NATIONAL GAMING INC 20,000 1,057,200PENN VIRGINIA CORP 720,000 3,384,000




Equities

June 30, 2013



PENN WEST PETROLEUM LTD 747,300 $7,862,960PENNYMAC MORTGAGE INVESTMENT 40,000 842,000PENSKE AUTOMOTIVE GROUP INC 116,000 3,542,640PEPCO HOLDINGS INC 270,000 5,443,200PEPSICO INC 1,299,600 106,294,284PERKINELMER INC 100,000 3,250,000PERNOD RICARD SA 169,878 18,811,297PERRIGO CO 280,000 33,880,000PERUSAHAAN GAS NEGARA PERSER 3,634,000 2,105,340PETSMART INC 30,000 2,009,700PFIZER INC W/D 9,463,112 265,061,767PHARMACYCLICS INC 50,000 3,973,500PHARMERICA CORP 30,000 415,800PHILIP MORRIS INTERNATIONAL 2,786,000 241,323,320PHILIPPINE LONG DIST SP ADR 408,500 27,720,810PHILIPPINE LONG DISTANCE TEL 97,710 6,649,708PHILLIPS 66 1,010,000 59,499,100PHOTRONICS INC 250,000 2,015,000PICK N PAY STORES LTD 1,809,459 7,221,650PIEDMONT NATURAL GAS CO 35,000 1,180,900PIER 1 IMPORTS INC 340,000 7,986,600PIMCO 0 5 YEAR HIGH YIELD CORP 100,000 10,267,000PIMCO HIGH INCOME FUND 504,700 5,910,037PINNACLE WEST CAPITAL 95,000 5,269,650PIONEER NATURAL RESOURCES CO 105,000 15,198,750PLX TECHNOLOGY INC 2,200,000 10,472,000PLY GEM HOLDINGS INC 40,000 802,400PNC FINANCIAL SERVICES 40,000 1,065,000PNC FINANCIAL SERVICES GROUP 1,160,031 84,589,461PNM RESOURCES INC 80,000 1,775,200POLSKIE GORNICTWO NAFTOWE I 7,401,760 12,886,730POLYCOM INC 300,000 3,162,000PORSCHE AUTOMOBIL HLDG PRF 92,556 7,155,970POST PROPERTIES INC 38,000 1,880,620POTASH CORP OF SASKATCHEWAN 659,438 25,078,584POWER ASSETS HOLDINGS LTD 1,902,000 16,417,374POWER CORP OF CANADA 243,000 6,500,270POWERSHARES DB COMMODITY INDEX 5,175,400 130,057,802PP LONDON SUMATRA INDONES PT 24,624,000 4,267,333PPC LTD 2,731,110 8,195,641PPG INDUSTRIES INC 100,000 14,641,000PPL CORPORATION 1,726,500 52,243,890PRAXAIR INC 500,000 57,580,000PRECISION CASTPARTS CORP 450,000 101,704,500PRIMERICA INC 540,000 20,217,600PROCTER + GAMBLE CO/THE 3,674,945 282,934,016PROGRESSIVE CORP 300,000 7,626,000PROLOGIS INC 625,000 23,575,000PROS HOLDINGS INC 890,000 26,655,500PROSENSA HOLDING NV 64,000 1,232,000PROTALIX BIOTHERAPEUTICS INC 240,000 1,178,400




Equities

June 30, 2013



PROTECTIVE LIFE CORP 40,000 $997,600PROVIDENT FINANCIAL SERVICES 180,000 2,840,400PRUDENTIAL FINANCIAL INC 1,550,000 113,196,500PRUDENTIAL PLC 1,525,256 24,868,581PTC INC 2,050,000 50,286,500PTT GLOBAL CHEMICAL PCL FOR 868,973 1,933,230PUBLIC SERVICE ENTERPRISE GP 534,000 17,440,440PUBLIC STORAGE 86,000 13,186,380PUBLICIS GROUPE 221,998 15,784,447PULTEGROUP INC 225,000 4,268,250PVH CORP 84,500 10,566,725QBE INSURANCE GROUP LTD 867,375 11,980,734QEP RESOURCES INC 175,000 4,861,500QIHOO 360 TECHNOLOGY CO ADR 313,837 14,489,854QUALCOMM INC 1,800,000 109,944,000QUANTA COMPUTER INC GDR 589,215 6,360,576QUANTA SERVICES INC 1,600,000 42,336,000QUEST DIAGNOSTICS INC 715,000 43,350,450QUESTAR CORP 200,000 4,770,000QUIMICA Y MINERA CHIL SP ADR 283,300 11,445,320RACKSPACE HOSTING INC 1,000,000 37,890,000RAIA DROGASIL SA 545,600 5,347,204RAKUTEN INC 384,700 4,542,740RALPH LAUREN CORP 11,000 1,911,140RANDGOLD RESOURCES LTD 60,313 3,736,825RANGE RESOURCES CORP 150,000 11,598,000RAYMOND JAMES FINANCIAL INC 500,000 21,490,000RAYTHEON COMPANY 800,000 52,896,000REALNETWORKS INC 37,500 283,500RECKITT BENCKISER GROUP PLC 402,545 28,377,907RED ELECTRICA CORPORACION SA 108,201 5,942,251RED HAT INC 200,000 9,564,000REDWOOD TRUST INC 135,000 2,295,000REED ELSEVIER NV 468,294 7,791,508REED ELSEVIER PLC 703,432 7,969,710REGAL BELOIT CORP 73,697 4,778,513REGAL ENTERTAINMENT GROUP A 310,000 5,549,000REGIONS FINANCIAL CORP 3,840,000 37,197,752REINSURANCE GROUP OF AMERICA 80,272 5,547,598RELIANCE INDS SPONS GDR 144A 117,682 3,388,065RENAULT SA 114,547 7,697,811REPSOL SA 1,373,998 14,857,653REPUBLIC SERVICES INC 1,800,000 61,092,000RESEARCH IN MOTION 372,200 3,909,167RESMED INC 31,200 1,408,056RESONA HOLDINGS INC 1,164,600 5,662,675RESOURCE AMERICA INC CL A 100,000 850,000RETAIL OPPORTUNITY INVESTMENTS 140,000 1,946,000REXNORD CORP 720,000 12,132,000REYNOLDS AMERICAN INC 1,278,000 61,816,860RICHTER GEDEON NYRT 84,536 12,665,950




Equities

June 30, 2013



RICOH CO LTD 610,000 $7,246,187RIGNET INC 200,000 5,096,000RIO TINTO LTD 321,576 15,415,354RIO TINTO PLC 848,356 34,522,211RIVERBED TECHNOLOGY INC 1,000,000 15,560,000ROBERT HALF INTL INC 272,000 9,038,560ROBINSON DEPT STORE NVDR 433,600 852,800ROBINSON DEPT STORE PCL FOR 2,562,900 5,040,687ROCHE HOLDING AG BR 60,552 15,026,803ROCHE HOLDING AG GENUSSCHEIN 746,219 185,342,139ROCK TENN COMPANY CL A 430,500 42,998,340ROCKY MOUNTAIN CHOC FACT INC 90,000 1,088,100ROGERS COMMUNICATIONS INC B 336,500 13,141,665ROLLS ROYCE HOLDINGS PLC 1,341,188 23,067,605ROSS STORES INC 155,000 10,045,550ROUSE PROPERTIES INC 25,000 490,500ROWAN COMPANIES PLC A 130,000 4,429,100ROYAL BANK OF CANADA 887,542 51,555,594ROYAL BANK OF SCOTLAND GROUP 1,289,134 5,347,554RWE AG 356,032 11,347,560RYDER SYSTEM INC 50,000 3,039,500SABMILLER PLC 562,524 26,896,511SABRA HEALTH CARE REIT INC 590,000 15,404,900SAFEGUARD SCIENTIFICS INC 250,000 4,012,500SAFRAN SA 259,423 13,530,583SAGA COMMUNICATIONS INC CL A 80,000 3,672,800SAGE GROUP PLC/THE 1,802,668 9,301,433SAIC INC 180,000 2,507,400SAKS INC 210,000 2,864,400SAMSUNG ELECTRONICS CO LTD 97,495 114,564,415SAMSUNG ELECTRONICS PFD 11,949 9,249,084SAMSUNG ENGINEERING CO LTD 19,622 1,273,141SAMSUNG FIRE + MARINE INS 5,926 1,209,017SANDISK CORP 100,000 6,110,000SANDS CHINA LTD 1,391,400 6,592,527SANDVIK AB 878,642 10,440,416SANLAM LTD 2,621,880 12,149,093SANOFI 987,760 102,227,228SANTOS LTD 942,262 10,807,122SAP AG 747,652 54,675,430SAPIENT CORPORATION 50,000 653,000SBA COMMUNICATIONS CORP CL A 70,000 5,188,400SBERBANK 14,015,069 39,102,043SBERBANK SPONSORED ADR 575,867 6,582,885SCANA CORP 110,000 5,401,000SCHINDLER HOLDING PART CERT 44,397 6,175,179SCHRODERS PLC 175,000 5,794,175SCHWAB (CHARLES) CORP 470,000 9,978,100SCIQUEST INC 130,000 3,256,500SEACHANGE INTERNATIONAL INC 270,000 3,161,700SEADRILL LTD 308,563 12,390,932




Equities

June 30, 2013



SEALED AIR CORP 1,000,000 $23,950,000SECOM CO LTD 131,400 7,143,102SEGA SAMMY HOLDINGS INC 302,700 7,566,357SEGRO PLC 300,000 1,270,388SEKISUI HOUSE LTD 708,000 10,220,688SELECT INCOME REIT 25,000 701,000SEMBCORP INDUSTRIES LTD 544,000 2,123,157SEMEN INDONESIA PERSERO TBK 9,438,600 16,261,971SEMPRA ENERGY 217,140 17,753,366SEQUENTIAL BRANDS GROUP INC 14,200 86,620SES 213,976 6,119,004SEVEN + I HOLDINGS CO LTD 674,130 24,600,808SHANGHAI PHARMACEUTICALS H 1,412,700 2,648,238SHANGRI LA ASIA LTD 10,937,450 18,895,722SHARP CORP 477,000 1,920,773SHAW COMMUNICATIONS INC B 294,055 7,035,355SHFL ENTERTAINMENT INC 200,000 3,542,000SHIKOKU ELECTRIC POWER CO 60,900 1,098,021SHIMANO INC 107,600 9,120,572SHIMAO PROPERTY HOLDINGS LTD 850,000 1,692,033SHIN CORP PCL FOREIGN 518,000 1,453,039SHIN CORPORATION PUB CO NVDR 183,400 514,454SHIN ETSU CHEMICAL CO LTD 307,360 20,359,680SHINHAN FINANCIAL GROUP LTD 1,207,573 39,757,230SHIRE PLC 451,233 14,269,433SHISEIDO CO LTD 288,618 4,291,426SHIZUOKA BANK LTD/THE 527,000 5,671,344SHOPPERS DRUG MART CORP 280,966 12,922,385SHOPRITE HOLDINGS LTD 1,456,191 27,210,435SI FINANCIAL GROUP INC 26,943 297,720SIAM CEMENT PCL NVDR 255,700 3,677,001SIEMENS AG 499,541 50,420,317SIGNATURE BANK 15,000 1,245,300SIHUAN PHARMACEUTICAL HLDGS 2,580,000 1,693,090SILICON IMAGE INC 250,000 1,462,500SILICONWARE PRECISION SP ADR 679,000 4,257,330SILVER WHEATON CORP 414,700 8,101,774SIMON PROPERTY GROUP INC 387,377 61,174,576SINCLAIR BROADCAST GROUP A 120,000 3,525,600SINGAPORE AIRLINES LTD 614,468 4,912,643SINGAPORE EXCHANGE LTD 934,443 5,179,480SINGAPORE PRESS HOLDINGS LTD 2,285,000 7,512,773SINGAPORE TECH ENGINEERING 3,418,447 11,293,300SINGAPORE TELECOM LTD 7,470,857 22,206,994SINO BIOPHARMACEUTICAL 7,028,000 4,557,664SINOPHARM GROUP CO H 1,745,200 4,383,053SK C+C CO LTD 16,999 1,485,487SK HYNIX INC 448,970 12,265,544SK TELECOM 17,774 3,268,281SKANDINAVISKA ENSKILDA BANKEN 2,769,279 26,300,037SKANSKA AB B SHS 376,765 6,212,942




Equities

June 30, 2013



SKECHERS USA INC CL A 50,000 $1,200,500SKF AB B SHARES 753,081 17,528,691SL GREEN REALTY CORP 131,000 11,552,890SM ENERGY CO 30,000 1,799,400SM INVESTMENTS CORP 293,340 7,265,597SM PRIME HOLDINGS INC 6,375,875 2,405,712SMC CORP 28,400 5,695,153SMITH + NEPHEW PLC 1,015,771 11,323,559SMITHS GROUP PLC 616,348 12,227,383SNAM SPA 2,664,044 12,119,994SNYDERS LANCE INC 110,000 3,125,100SOCIETE GENERALE 418,565 14,363,485SODEXO 65,731 5,468,185SOFTBANK CORP 768,959 44,820,784SONIC AUTOMOTIVE INC CLASS A 293,000 6,194,020SONUS NETWORKS INC 300,000 903,000SONY CORP 606,800 12,693,717SOUTH JERSEY INDUSTRIES 35,000 2,009,350SOUTHERN CO/THE 741,000 32,700,330SOUTHWEST AIRLINES CO 3,400,000 43,826,000SOUTHWEST GAS CORP 35,000 1,637,650SOUTHWESTERN ENERGY CO 340,000 12,420,200SOUZA CRUZ SA 1,079,500 13,384,715SOVRAN SELF STORAGE INC 39,500 2,559,205SPDR BARCLAYS SHORT TERM HIGH YIELD 325,000 9,808,500SPDR DB INTERNATIONAL GOVERNMENT 245,000 14,104,650SPDR GOLD SHARES 440,000 52,426,000SPECTRA ENERGY CORP 745,000 25,672,700SPECTRUM GROUP INTERNATIONAL 152,837 343,883SPIRIT REALTY CAPITAL INC 25,000 443,000SPLUNK INC 220,000 10,199,200SPRINT COMMUNICATIONS INC 4,800,000 33,696,000SPX CORP 175,000 12,596,500SSE PLC 619,403 14,307,805ST JUDE MEDICAL INC 700,000 31,941,000STAG INDUSTRIAL INC 315,000 6,284,250STANDARD BANK GROUP LTD 818,362 9,190,003STANDARD CHARTERED PLC 1,547,283 33,488,333STANDARD FOODS CORP GDR 231,363 3,641,654STANDARD LIFE PLC 1,588,227 8,327,445STANLEY BLACK + DECKER INC 340,000 26,282,000STARHUB LTD 502,000 1,654,467STARWOOD EUROPEAN REAL ESTATE 1,200,000 1,865,541STARWOOD HOTELS + RESORTS 262,500 16,587,375STARWOOD PROPERTY TRUST INC 888,500 21,990,375STATE BANK OF INDIA GDR 64,609 4,322,342STATE STREET CORP 360,000 23,475,600STEELCASE INC CL A 245,000 3,572,100STERICYCLE INC 50,000 5,521,500STEVEN MADDEN LTD 409,000 19,787,420STIFEL FINANCIAL CORP 600,000 21,402,000




Equities

June 30, 2013



STMICROELECTRONICS NV 760,316 $6,839,998STOCKLAND 1,727,552 5,502,977STOCKMANN OYJ ABP B SHARE 80,920 1,193,836STORA ENSO OYJ R SHS 240,625 1,610,798STRATEGIC HOTELS + RESORTS INC 310,000 2,746,600STRYKER CORP 45,000 2,910,600SUBSEA 7 SA 195,599 3,411,583SUEZ ENVIRONNEMENT CO 97,453 1,257,115SUMITOMO CHEMICAL CO LTD 1,195,000 3,753,360SUMITOMO ELECTRIC INDUSTRIES 944,400 11,275,567SUMITOMO METAL MINING CO LTD 318,000 3,540,625SUMITOMO MITSUI FINANCIAL GROUP 1,130,820 51,796,758SUMITOMO MITSUI TRUST HOLDING 4,349,000 20,270,670SUMITOMO REALTY + DEVELOPMENT 222,000 8,838,879SUMMER INFANT INC 485,000 1,484,100SUN BANCORP INC NJ 33,075 112,124SUN COMMUNITIES INC 262,000 13,037,120SUN HUNG KAI PROPERTIES 1,046,007 13,499,301SUN LIFE FINANCIAL INC 579,276 17,104,552SUNCOKE ENERGY INC 40,000 560,800SUNCOR ENERGY INC 1,315,024 38,642,347SUNCORP GROUP LTD 1,296,530 14,146,406SUNEDISON INC 100,000 817,000SUNSTONE HOTEL INVESTORS INC 80,000 966,400SUPALAI PCL NVDR 1,404,100 801,308SUPALAI PUBLIC CO LTD FOR 8,207,500 4,683,951SUPERIOR ENERGY SERVICES INC 75,000 1,945,500SUZUKI MOTOR CORP 210,971 4,857,207SVB FINANCIAL GROUP 95,000 7,915,400SVENSKA CELLULOSA AB B SHS 325,464 8,115,564SVENSKA HANDELSBANKEN A SHS 285,052 11,369,222SWATCH GROUP AG/THE BR 24,510 13,392,876SWEDBANK AB A SHARES 768,225 17,505,575SWEDISH MATCH AB 136,831 4,826,980SWEDISH ORPHAN BIOVITRUM AB 790,000 4,705,272SWIRE PACIFIC LTD A 1,463,000 17,654,799SWIRE PROPERTIES LTD 3,219,945 9,589,656SWISS LIFE HOLDING AG 75,000 12,175,659SWISS RE AG 294,163 21,856,639SWISSCOM AG 19,288 8,431,556SWK HOLDINGS CORP 635,000 635,000SYMANTEC CORP 800,000 17,976,000SYNAPTICS INC 200,000 7,712,000SYNGENTA AG 61,062 23,852,999SYNNEX TECHNOLOGY INTL GDR 1,261,160 6,559,293SYNOPSYS INC 280,000 10,010,000SYSCO CORP 340,000 11,614,400T ROWE PRICE GROUP INC 300,000 21,945,000TAISHO PHARMACEUTICAL HOLDIN 99,400 7,044,607TAIWAN CEMENT 1,028,180 1,265,885TAIWAN FERTILIZER CO LTD 530,000 1,280,304




Equities

June 30, 2013



TAIWAN SEMICONDUCTOR MANUFAC 1,646,408 $6,097,604TAIWAN SEMICONDUCTOR SP ADR 4,461,663 81,737,666TAKEDA PHARMACEUTICAL CO LTD 549,900 24,800,443TAL INTERNATIONAL GROUP INC 890,000 38,777,300TALISMAN ENERGY INC 955,050 10,863,643TAMBANG BATUBARA BUKIT ASAM 677,500 907,884TANGER FACTORY OUTLET CENTER 167,000 5,587,820TARGET CORP 444,880 30,634,437TATA POWER CO LTD GDR 69,121 1,003,810TATA STEEL LTD 150,110 702,515TATA STEEL LTD GDR 643,264 3,010,476TAUBMAN CENTERS INC 79,500 5,974,425TAYLOR MORRISON HOME CORP A 1,460,000 35,594,800TE CONNECTIVITY LTD 640,000 29,145,600TECK RESOURCES LTD CLS B 414,875 8,836,666TECO ELECTRIC + MAC GDR 461,752 3,927,940TECO ENERGY INC 241,000 4,142,790TELE2 AB B SHS 266,316 3,107,273TELECOM ITALIA SPA 12,247,939 8,501,533TELEDYNE TECHNOLOGIES INC 25,000 1,933,750TELEFONICA SA 2, 601,209 33,287,712TELEKOMUNIK INDONESIA SP ADR 690,000 29,490,600TELEKOMUNIKACJA POLSKA SA 3,429,679 7,875,799TELENOR ASA 739,179 14,575,241TELIASONERA AB 1,827,279 11,839,026TELSTRA CORP LTD 3,334,982 14,561,267TELUS CORP 468,800 13,642,504TEMPUR SEALY INTERNATIONAL INC 22,000 965,800TENARIS SA 494,388 9,902,926TENCENT HOLDINGS LTD 534,600 20,966,733TENET HEALTHCARE CORP 1,307,500 60,275,750TERADATA CORP 250,000 12,557,500TERADYNE INC 300,000 5,271,000TERRENO REALTY CORP 65,000 1,204,450TERUMO CORP 87,900 4,366,905TESCO PLC 5,206,629 26,170,314TEVA PHARMACEUTICAL IND LTD 424,147 16,381,685TEVA PHARMACEUTICAL SP ADR 280,500 10,995,600TEXAS INDUSTRIES INC 20,000 1,302,800TEXAS INSTRUMENTS INC 750,000 26,152,500THAI OIL PCL FRGN 1,339,700 2,721,299THERAVANCE INC 539,108 20,771,831THERMO FISHER SCIENTIFIC INC 100,000 8,463,000THOMSON REUTERS CORP 201,800 6,565,028THOR INDUSTRIES INC 75,000 3,688,500THYSSENKRUPP AG 777,274 15,251,067TIBCO SOFTWARE INC 100,000 2,140,000TIFFANY + CO 106,500 7,757,460TIGER BRANDS LTD 396,821 11,828,042TIM HORTONS INC 186,626 10,062,360TIME WARNER CABLE 220,000 24,745,600




Equities

June 30, 2013



TIME WARNER INC 1,050,000 $60,711,000TITAN INTERNATIONAL INC 1,100,000 18,557,000TITAN MACHINERY INC 690,000 13,544,700TIVO INC 360,000 3,978,000TJX COMPANIES INC 1,092,500 54,690,550TNK BP HOLDING CLS 1,895,164 2,676,946TOBU RAILWAY CO LTD 1,831,000 9,419,047TOHOKU ELECTRIC POWER CO INC 421,200 5,253,604TOKIO MARINE HOLDINGS INC 884,792 28,012,995TOKYO ELECTRON LTD 620,852 31,375,417TOKYO GAS CO LTD 3,869,428 21,346,419TOKYU CORP 1,539,000 10,054,976TOLL BROTHERS INC 1,630,000 53,186,900TONENGENERAL SEKIYU KK 274,000 2,650,768TOOTSIE ROLL INDS 86,088 2,735,877TOPPAN PRINTING CO LTD 1,218,000 8,448,201TORAY INDUSTRIES INC 3,636,774 23,504,393TORONTO DOMINION BANK 859,528 68,822,532TOSHIBA CORP 2,034,016 9,767,208TOTAL ACCESS COMMUNICA NVDR 1,853,000 6,870,708TOTO LTD 525,000 5,332,713TOYOTA INDUSTRIES CORP 182,800 7,471,365TOYOTA MOTOR CORP 1,758,700 106,051,372TPKHLDCO 2012 NE GDR 174,502 2,781,562TRACTOR SUPPLY COMPANY 96,200 11,314,082TRANSALTA CORP 439,466 6,002,849TRANSCANADA CORP 863,164 37,048,264TRANSDIGM GROUP INC 280,000 43,895,600TRANSOCEAN LTD 298,851 14,329,905TRANSURBAN GROUP 1,525,597 9,440,040TRAVELERS COS INC/THE 586,595 46,880,672TREASURY WINE ESTATES LTD 4,500,000 23,973,023TREND MICRO INC 48,200 1,528,464TREX COMPANY INC 640,000 30,393,600TRI POINTE HOMES INC 65,000 1,077,700TRICAN WELL SERVICE LTD 200,000 2,650,363TRIQUINT SEMICONDUCTOR INC 200,000 1,386,000TRIUMPH GROUP INC 670,000 53,030,500TRUWORTHS INTERNATIONAL LTD 1,124,356 9,847,969TRW AUTOMOTIVE HOLDINGS CORP 875,000 58,135,000TSINGTAO BREWERY CO LTD H 1,676,000 12,014,105TULLOW OIL PLC 603,635 9,164,490TUMI HOLDINGS INC 45,000 1,080,000TUPPERWARE BRANDS CORP 120,000 9,322,800TUPRAS TURKIYE PETROL RAFINE 264,346 6,452,977TURKCELL ILETISIM HIZMET AS 2,595,133 15,064,132TURKIYE GARANTI BANKASI 3,952,661 17,249,167TURKIYE IS BANKASI C 7,056,568 20,846,582TWENTY FIRST CENTURY FOX INC 2,500,000 81,500,000TYCO INTERNATIONAL LTD 1,150,000 37,892,500UBS AG 2,769,994 47,076,577




Equities

June 30, 2013



ULTA SALON COSMETICS + FRAGRANCE INC 140,000 $14,022,400ULTRA CLEAN HOLDINGS 250,000 1,512,500ULTRAPAR PARTICIPACOES SA 359,960 8,655,791UMH PROPERTIES INC 275,000 2,824,250UNDER ARMOUR INC CLASS A 790,000 47,170,900UNI PRESIDENT CHINA HOLDINGS 8,982,900 9,137,685UNI PRESIDENT ENTERPRISES CO 1,193,948 2,326,468UNIBAIL RODAMCO SE 191,445 44,544,084UNICREDIT SPA 3,080,784 14,408,388UNILEVER NV CVA 961,007 37,793,463UNILEVER PLC 1,288,805 52,034,940UNION PACIFIC CORP 340,000 52,455,200UNITE GROUP PLC 325,000 1,784,891UNITED NATURAL FOODS INC 640,000 34,553,600UNITED ONLINE INC 1,840,000 13,947,200UNITED OVERSEAS BANK LTD 1,118,119 17,508,352UNITED PARCEL SERVICE CL B 450,000 38,916,000UNITED RENTALS INC 1,340,000 66,879,400UNITED STATES STEEL CORP 150,000 2,629,500UNITED TECHNOLOGIES CORP 1,050,000 94,229,000UNITED THERAPEUTICS CORP 20,000 1,316,400UNITED TRACTORS TBK PT 7,225,977 13,250,658UNITEDHEALTH GROUP INC 785,228 51,416,729UNIVERSAL DISPLAY CORP 300,000 8,433,000UNIVERSAL HEALTH SERVICES B 235,000 15,735,600UPM KYMMENE OYJ 414,713 4,059,155URBAN OUTFITTERS INC 104,300 4,194,946URS CORP 900,000 42,498,000US AIRWAYS GROUP INC 1,400,000 22,988,000US BANCORP 1,696,671 61,334,657VAIL RESORTS INC 30,000 1,845,600VALASSIS COMMUNICATIONS INC 110,000 2,704,900VALE SA SP ADR 1,653,457 21,742,960VALEANT PHARMACEUTICALS INTL 175,600 15,093,993VALERO ENERGY CORP 550,000 19,123,500VALLOUREC 61,088 3,086,877VALUECLICK INC 470,000 11,599,600VANGUARD FTSE DEVELOPED MARKETS 2,000,000 71,220,000VANGUARD FTSE EMERGING MARKETS 29,222,500 1,133,248,550VCA ANTECH INC 80,000 2,087,200VECTREN CORPORATION 70,000 2,368,100VECTURA GROUP PLC 45,000 55,284VENTAS INC 100,000 6,946,000VENTURE CORP LTD 160,000 915,872VEOLIA ENVIRONNEMENT 534,683 6,075,059VERIFONE SYSTEMS INC 1,725,000 28,997,250VERISIGN INC 120,000 5,359,200VERISK ANALYTICS INC CLASS A 50,000 2,985,000VERIZON COMMUNICATIONS INC 1,900,000 95,646,000VERTEX PHARMACEUTICALS INC 60,000 4,792,200VF CORP 6,000 1,158,360




Equities

June 30, 2013



VIACOM INC CLASS B 900,000 $61,245,000VIASAT INC 75,000 5,359,500VIENNA INSURANCE GROUP AG 75,000 3,478,884VINCI SA 367,595 18,422,276VISA INC CLASS A SHARES 620,000 113,305,000VISHAY INTERTECHNOLOGY INC 150,000 2,083,500VISHAY PRECISION GROUP 60,714 919,210VIVENDI 867,872 16,413,895VODACOM GROUP LTD 1,092,203 11,554,432VODAFONE GROUP PLC 29,831,532 84,993,665VOLKSWAGEN AG PREF 107,184 21,671,699VOLVO AB B SHS 1,147,200 15,263,253VORNADO REALTY TRUST 68,386 5,665,780WABASH NATIONAL CORP 2,900,000 29,522,000WAL MART STORES INC 2,206,000 164,324,940WALGREEN CO 440,800 19,483,360WALMART DE MEXICO SER V 3,698,300 10,311,976WALT DISNEY CO/THE 2,920,000 184,398,000WATTS WATER TECHNOLOGIES A 440,000 19,949,600WEB.COM GROUP INC 160,000 4,096,000WEICHAI POWER CO LTD H 2,437,800 7,165,979WEIR GROUP PLC/THE 181,986 5,937,152WELLPOINT INC 270,000 22,096,800WELLS FARGO + CO 9,259,890 382,155,660WEST FARMERS LTD 701,589 25,431,107WEST JAPAN RAILWAY CO 124,800 5,289,254WESTAR ENERGY INC 100,000 3,196,000WESTERN ASSET HIGH INCOME FUND 500,000 4,610,000WESTERN ASSET MORTGAGE CAPITAL 107,500 1,876,950WESTERN UNION CO 700,000 11,977,000WESTFIELD GROUP 2,227,873 23,329,410WESTFIELD RETAIL TRUST 3,130,093 8,881,907WESTPAC BANKING CORP 1,976,819 52,257,833WEYERHAEUSER CO 2,831,000 82,907,190WGL HOLDINGS INC 45,000 1,944,900WHARF HOLDINGS LTD 1,773,430 14,918,913WHIRLPOOL CORP 56,000 6,404,160WHITBREAD PLC 278,409 12,904,358WHITESTONE REIT 100,000 1,576,000WHITEWAVE FOODS CO CL A 1,700,000 27,625,000WHOLE FOODS MARKET INC 50,000 2,574,000WILLIAMS COS INC 615,000 19,969,050WILMAR INTERNATIONAL LTD 700,119 1,738,843WINTHROP REALTY TRUST 100,000 1,203,000WISCONSIN ENERGY CORP 192,400 7,886,476WM MORRISON SUPERMARKETS 2,399,263 9,526,805WOLSELEY PLC 215,974 9,935,133WOLTERS KLUWER 272,871 5,765,505WOODSIDE PETROLEUM LTD 521,450 16,710,601WOOLWORTHS HOLDINGS LTD 1,440,800 9,348,248WOOLWORTHS LTD 887,697 26,659,886




Equities

June 30, 2013



WP CAREY INC 84,000 $5,558,280WPP PLC 1,241,252 21,122,855WPX ENERGY INC 265,000 5,019,100WR BERKLEY CORP 107,905 4,408,998WYNDHAM WORLDWIDE CORP 322,000 18,428,060WYNN MACAU LTD 5,677,200 15,407,384WYNN RESORTS LTD 17,500 2,240,000XCEL ENERGY INC 476,000 13,489,840XENOPORT INC 99,906 494,535XL AXIATA TBK PT 5,134,500 2,496,117XL GROUP PLC 280,000 8,489,600XO GROUP INC 520,000 5,824,000YAHOO JAPAN CORP 17,742 8,733,919YAMAHA MOTOR CO LTD 491,800 6,361,937YAMANA GOLD INC 708,300 6,734,204YAMATO HOLDINGS CO LTD 350,800 7,384,333YANDEX NV A 648,800 17,926,344YARA INTERNATIONAL ASA 220,609 8,750,583YOUKU TUDOU INC 174,400 3,346,736YPF S.A. SPONSORED ADR 567,000 8,368,920YUANTA FINANCIAL HOLDING CO 977,097 508,582YUM BRANDS INC 488,000 33,837,920ZAGG INC 1,380,000 7,383,000ZAIS FINANCIAL CORP 398,500 7,240,745ZIMMER HOLDINGS INC 240,500 18,023,070ZOETIS INC W/I 2,982,577 92,131,810ZTE CORP H 4,144,400 6,679,044ZURICH INSURANCE GROUP AG 103,253 26,736,759

Total equities $ 35,503,380,644





Equities

June 30, 2013



99 CENTS ONLY STORES 11.000% 12/15/2019 $ 300,000 339,000A S CO. ISSUER SUBSIDARY 7.875 12/15/2020 4,375,000 4,396,875ABC SUPPLY CO INC 5.625 04/15/2021 2,150,000 2,112,375ACADIA HEALTHCARE CO INC 6.125 03/15/2021 2,125,000 2,125,000ACCELLENT INC 8.375 02/01/2017 225,000 232,875ACCESS MIDSTREAM PARTNERS 4.875 05/15/2023 2,105,000 1,952,387ACCESS MIDSTREAM PARTNERS 5.875 04/15/2021 100,000 101,500ACCESS MIDSTREAM PARTNERS 6.125 07/15/2022 3,710,000 3,756,375ACCURIDE CORP 9.500 08/01/2018 525,000 534,187ACE CASH EXPRESS INC 11.000 02/01/2019 175,000 168,000ACTUANT CORPORATION 5.625 06/15/2022 150,000 151,875ADVANCED MICRO DEVICES 7.500 08/15/2022 3,750,000 3,628,125ADVANCED MICRO DEVICES 8.125 12/15/2017 50,000 51,625AEP TEXAS CENTRAL CO 6.650 02/15/2033 12,500,000 14,733,512AES CORPORATION 4.875 05/15/2023 275,000 256,437AES CORPORATION 7.375 07/01/2021 1,000,000 1,097,500AES CORPORATION 7.750 10/15/2015 618,000 681,345AES CORPORATION 8.000 10/15/2017 2,100,000 2,362,500AES CORPORATION 8.000 06/01/2020 250,000 285,000AES CORPORATION 9.750 04/15/2016 2,045,000 2,356,862AFFINIA GROUP INC 7.750 05/01/2021 675,000 680,062AFFINION GROUP HOLDINGS 11.625 11/15/2015 1,000,000 500,000AFFINION GROUP INC 7.875 12/15/2018 225,000 169,875AGFC CAPITAL TRUST 6.000 01/15/2067 100,000 75,000AGRIUM INC 3.500 06/01/2023 15,000,000 14,428,710AGUILA 3 SA 7.875 01/31/2018 500,000 515,000AID ISRAEL 0.000 09/15/2018 20,000,000 18,297,860AID ISRAEL 0.000 03/15/2023 19,000,000 14,093,155AID ISRAEL 5.500 09/18/2023 60,000,000 72,584,640AID ISRAEL 5.500 12/04/2023 50,000,000 60,227,050AID ISRAEL 5.500 04/26/2024 89,000,000 108,144,879AINSWORTH LUMBER LTD 7.500 12/15/2017 1,825,000 1,934,500AIR CANADA 9.250 08/01/2015 550,000 576,125AIR CANADA 5.375 11/15/2022 2,075,000 2,069,812AIR CANADA 6.625 05/15/2018 75,000 75,609AIR LEASE CORP 4.500 01/15/2016 275,000 273,625AIR LEASE CORP 4.750 03/01/2020 1,100,000 1,061,500AIR MEDICAL GROUP HOLDING 9.250 11/01/2018 1,500,000 1,616,250AIRCASTLE LTD 6.750 04/15/2017 25,000 26,250AK STEEL CORP 8.375 04/01/2022 300,000 258,000ALBEA BEAUTY HOLDINGS SA 8.375 11/01/2019 275,000 269,500ALBERTA ENERGY CO LTD 7.375 11/01/2031 12,000,000 14,285,916ALBERTA ENERGY CO LTD 8.125 09/15/2030 8,500,000 10,753,783ALCATEL LUCENT USA INC 6.450 03/15/2029 1,110,000 840,825ALCOA INC 5.870 02/23/2022 43,000,000 41,839,215ALCOA INC 5.900 02/01/2027 58,170,000 54,411,985ALCOA INC 6.150 08/15/2020 10,000,000 10,242,920ALERE INC 6.500 06/15/2020 3,700,000 3,589,000ALERE INC 7.250 07/01/2018 125,000 132,500

Schedule 26



Fixed Income

June 30, 2013

INTEREST MATURITY FAIRNAME RATE DATE PAR VALUE


ALERE INC 8.625% 10/01/2018 $3,650,000 3,850,750ALERIS INTL INC 7.625 02/15/2018 2,250,000 2,340,000ALERIS INTL INC 7.875 11/01/2020 3,300,000 3,382,500ALGECO SCOTSMAN GLOBAL FINANCE 8.500 10/15/2018 1,250,000 1,243,750ALGECO SCOTSMAN GLOBAL FINANCE 10.750 10/15/2019 175,000 167,125ALLEN SYSTEMS GROUP INC 10.500 11/15/2016 550,000 357,500ALLIANCE DATA SYSTEMS CO 6.375 04/01/2020 1,000,000 1,030,000ALLIANCE HEALTHCARE SERVICES 8.000 12/01/2016 450,000 453,375ALLISON TRANSMISSION INC 7.125 05/15/2019 4,160,000 4,399,200ALLY FINANCIAL INC 3.125 01/15/2016 500,000 498,809ALLY FINANCIAL INC 4.625 06/26/2015 925,000 948,154ALLY FINANCIAL INC 5.500 02/15/2017 4,735,000 4,947,175ALLY FINANCIAL INC 6.250 12/01/2017 1,000,000 1,069,770ALLY FINANCIAL INC 6.750 12/01/2014 150,000 157,875ALLY FINANCIAL INC 7.500 09/15/2020 2,750,000 3,169,375ALLY FINANCIAL INC 7.500 12/31/2013 750,000 768,750ALLY FINANCIAL INC 8.000 03/15/2020 1,250,000 1,451,563ALLY FINANCIAL INC 8.000 11/01/2031 925,000 1,112,312ALLY FINANCIAL INC 8.000 11/01/2031 2,025,000 2,419,874ALLY FINANCIAL INC 8.300 02/12/2015 2,500,000 2,693,750ALPHA NATURAL RESOURCES 6.000 06/01/2019 150,000 121,500ALPHA NATURAL RESOURCES 6.250 06/01/2021 550,000 437,250ALPHABET HOLDING CO INC 7.750 11/01/2017 3,300,000 3,382,500ALTA MESA HOLDINGS 9.625 10/15/2018 650,000 674,375ALTEGRITY INC 12.000 11/01/2015 1,125,000 1,023,750AMC ENTERTAINMENT INC 9.750 12/01/2020 500,000 566,250AMC NETWORKS INC 4.750 12/15/2022 3,275,000 3,160,375AMC NETWORKS INC 7.750 07/15/2021 200,000 218,500AMERICAN AIRLINES 8.625 04/15/2023 22,749 24,170AMERENENERGY GENERATING 6.300 04/01/2020 75,000 57,000AMERENENERGY GENERATING 7.000 04/15/2018 300,000 246,000AMERICAN AXLE + MFG INC 6.250 03/15/2021 1,025,000 1,041,656AMERICAN AXLE + MFG INC 9.250 01/15/2017 333,000 358,807AMERICAN GILSONITE CO 11.500 09/01/2017 231,000 243,127AMERICAN GREETINGS 7.375 12/01/2021 250,000 251,250AMERICAN INTL GROUP 6.820 11/15/2037 164,000 196,928AMERICAN INTL GROUP 8.175 05/15/2068 500,000 610,000AMERICAN MUNICIPAL POWER OF OHIO 6.270 02/15/2050 10,000,000 10,647,600AMERICAN MUNICIPAL POWER OF OHIO 6.553 02/15/2039 20,000,000 21,327,400AMERICAN MUNICIPAL POWER OF OHIO 8.084 02/15/2050 10,000,000 13,304,500AMERICAN TIRE DISTRIBUTOR INC. 9.750 06/01/2017 1,200,000 1,266,000AMERIGAS FINANCE CORP. 6.750 05/20/2020 475,000 491,625AMERIGAS FINANCE CORP. 7.000 05/20/2022 1,250,000 1,278,125AMERISTAR CASINOS INC 7.500 04/15/2021 3,050,000 3,172,000AMERITECH CAPITAL FUNDNG 6.450 01/15/2018 25,000,000 28,501,900AMGEN INC 3.450 10/01/2020 10,000,000 10,206,800AMGEN INC 5.850 06/01/2017 19,000,000 21,690,172AMKOR TECHNOLOGY INC 6.375 10/01/2022 150,000 147,375AMKOR TECHNOLOGY INC 6.625 06/01/2021 1,050,000 1,034,250




Fixed Income

June 30, 2013



AMSTED INDUSTRIES 8.125% 03/15/2018 $100,000 105,500ANADARKO FINANCE CO 7.500 05/01/2031 60,000,000 74,801,640ANADARKO PETROLEUM CORP 7.950 06/15/2039 10,000,000 13,216,720ANALOG DEVICES INC 2.875 06/01/2023 87,500,000 82,262,162ANCESTRY.COM INC 11.000 12/15/2020 1,050,000 1,160,250ANCHORAGE AK ELECTRIC UTILITY 6.558 12/01/2039 7,000,000 7,376,600ANHEUSER BUSCH COMPANY 7.550 10/01/2030 15,000,000 19,890,225ANTERO RESOURCES FINANCE 6.000 12/01/2020 3,715,000 3,659,275ANTERO RESOURCES FINANCE 7.250 08/01/2019 1,300,000 1,355,250APERAM 7.750 04/01/2018 175,000 166,250APPALACHIAN POWER CO 5.800 10/01/2035 20,000,000 21,884,320APPLE INC 1.000 05/03/2018 85,000,000 81,625,330APPROACH RESOURCES INC 7.000 06/15/2021 425,000 428,187APRIA HEALTHCARE GROUP I 12.375 11/01/2014 1,725,000 1,748,718APX GROUP INC 6.375 12/01/2019 450,000 427,500APX GROUP INC 8.750 12/01/2020 1,075,000 1,023,937ARAMARK CORP 5.750 03/15/2020 2,575,000 2,632,937ARAPAHOE COUNTY COLORADO WATER 6.680 12/01/2039 9,000,000 9,810,090ARCELORMITTAL 4.250 08/05/2015 990,000 999,900ARCELORMITTAL 6.750 02/25/2022 1,900,000 1,947,500ARCELORMITTAL 7.500 10/15/2039 1,050,000 997,500ARCELORMITTAL 10.350 06/01/2019 1,175,000 1,389,437ARCH COAL INC 7.000 06/15/2019 1,825,000 1,519,312ARCH COAL INC 7.250 06/15/2021 500,000 405,000ARCH COAL INC 8.750 08/01/2016 175,000 175,000ARCH COAL INC 9.875 06/15/2019 225,000 213,750ARD FINANCE SA 11.125 06/01/2018 839,433 889,799ARDAGH PACKAGING FINANCE 9.125 10/15/2020 750,000 799,687ARDAGH PACKAGING FINANCE 7.000 11/15/2020 3,000,000 2,891,250ARDAGH PACKAGING FINANCE 7.375 10/15/2017 500,000 533,125ARIZONA BOARD OF REGENTS 6.643 08/01/2044 14,000,000 15,913,940ARIZONA PUBLIC SERVICE 8.750 03/01/2019 17,000,000 22,091,908ARMORED AUTOGROUP INC 9.250 11/01/2018 875,000 802,812AS AMERICAS 10.750 01/15/2016 50,000 52,500ASBURY AUTOMOTIVE GROUP 8.375 11/15/2020 125,000 138,437ASHLAND INC 3.875 04/15/2018 950,000 940,500ASHLAND INC 4.750 08/15/2022 2,220,000 2,197,800ASHLAND INC 6.875 05/15/2043 1,750,000 1,785,000ASHTON WOODS USA/FINANCE 6.875 02/15/2021 1,300,000 1,306,500ASIAN DEVELOPMENT BANK 0.500 06/20/2016 50,000,000 49,356,655ASIAN DEVELOPMENT BANK 7.500 06/15/2015 25,000,000 28,277,500ASSOCIATED MATERIALS 9.125 11/01/2017 2,000,000 2,100,000ASSOCIATED MATERIALS 9.125 11/01/2017 675,000 708,750AT+T INC 6.150 09/15/2034 10,000,000 11,023,600AT+T INC 6.450 06/15/2034 30,000,000 34,179,660AT+T INC 6.500 09/01/2037 98,494,000 111,750,997ATHLON HOLDING 7.375 04/15/2021 1,500,000 1,481,250ATKORE INTERNATIONAL INC 9.875 01/01/2018 375,000 397,500ATLAS ENTERTAINMENT HOLDINGS 7.750 01/15/2021 1,425,000 1,360,875




Fixed Income

June 30, 2013



ATLAS PIPELINE COMPANY 6.625% 10/01/2020 $1,000,000 1,002,500ATLAS PIPELINE COMPANY 6.625 10/01/2020 75,000 75,187ATWOOD OCEANICS INC 6.500 02/01/2020 1,000,000 1,037,500AUDATEX NORTH AMERICA INC 6.000 06/15/2021 2,425,000 2,418,937AURORA USA OIL + GAS INC 7.500 04/01/2020 475,000 465,500AURORA USA OIL + GAS INC 9.875 02/15/2017 650,000 676,000AVAYA INC 7.000 04/01/2019 750,000 676,875AVAYA INC 9.000 04/01/2019 1,000,000 960,000AVIATION CAPITAL GROUP 4.625 01/31/2018 1,000,000 984,375AVIS BUDGET CAR/FINANCE 5.500 04/01/2023 2,290,000 2,209,850AVIV HEALTHCARE PROPERTIES 7.750 02/15/2019 2,000,000 2,135,000AXIALL CORP 4.875 05/15/2023 825,000 783,750B/E AEROSPACE INC 5.250 04/01/2022 2,965,000 2,950,175B/E AEROSPACE INC 6.875 10/01/2020 500,000 540,000BAKERCORP 8.250 06/01/2019 350,000 343,000BALL CORP 5.000 03/15/2022 800,000 796,000BANK OF AMERICA CORP 5.200 12/31/2049 875,000 822,500BANK OF AMERICA CORP 8.000 12/31/2049 275,000 306,281BANK ONE CAPITAL III 8.750 09/01/2030 2,050,000 2,740,255BARCLAYS BANK PLC 7.625 11/21/2022 225,000 220,781BARCLAYS BANK PLC 7.750 04/10/2023 850,000 845,750BARMINCO FINANCE PROPERTY 9.000 06/01/2018 2,150,000 1,892,000BARRY CALLEBAUT SERVICES 5.500 06/15/2023 200,000 201,308BAUSCH + LOMB INC 9.875 11/01/2015 1,217,000 1,250,467BAXTER INTERNATIONAL INC 1.850 06/15/2018 10,000,000 9,919,010BAXTER INTERNATIONAL INC 2.400 08/15/2022 25,000,000 23,094,350BAXTER INTERNATIONAL INC 3.200 06/15/2023 15,000,000 14,713,170BAXTER INTERNATIONAL INC 5.375 06/01/2018 10,000,000 11,488,900BAYLOR COLLEGE OF MEDIC 5.259 11/15/2046 4,000,000 3,283,200BC LUXCO 1 SA 7.375 01/29/2020 150,000 142,500BC MOUNTAIN LLC/BC MTN 7.000 02/01/2021 275,000 280,500BEAZER HOMES USA 7.250 02/01/2023 850,000 858,500BEAZER HOMES USA 8.125 06/15/2016 300,000 327,750BECTON DICKINSON 3.250 11/12/2020 19,000,000 19,212,952BELDEN INC 5.500 09/01/2022 1,000,000 982,500BELLSOUTH CAP FUNDING 7.875 02/15/2030 24,000,000 29,742,864BELLSOUTH CORP 6.550 06/15/2034 25,000,000 27,297,450BELLSOUTH TELECOMMUNICATIONS 6.375 06/01/2028 22,600,000 25,510,789BELO (A.H.) CORP 7.250 09/15/2027 1,000,000 1,022,500BELO CORPORATION 7.750 06/01/2027 1,000,000 1,070,000BERRY PLASTICS CORP 9.500 05/15/2018 2,000,000 2,175,000BERRY PLASTICS CORP 9.750 01/15/2021 1,000,000 1,130,000BEXAR COUNTY TX HOSPITAL DISTRICT 5.413 02/15/2040 10,000,000 9,665,100BEXAR COUNTY TX HOSPITAL DISTRICT 6.904 02/15/2039 15,000,000 16,978,650BI- LO FINANCE 9.250 02/15/2019 2,000,000 2,150,000BIOMET INC 6.500 10/01/2020 4,400,000 4,389,000BIOMET INC 6.500 08/01/2020 6,350,000 6,544,469BK CAPITAL HOLDING 0.000 04/15/2019 2,500,000 2,121,875BLOCK COMMUNICATIONS INC 7.250 02/01/2020 350,000 367,500




Fixed Income

June 30, 2013



BLOCK FINANCIAL LLC 5.500% 11/01/2022 $1,000,000 1,004,898BLUESCOPE STEEL LTD 7.125 05/01/2018 250,000 253,750BOART LONGYEAR MANAGEMENT 7.000 04/01/2021 1,910,000 1,800,175BOE INTERMEDIATE HOLDING 9.000 11/01/2017 600,000 576,000BOE MERGER CORP 9.500 11/01/2017 625,000 637,500BOEING CO 7.950 08/15/2024 30,000,000 40,911,720BOISE CASCADE COMPANY 6.375 11/01/2020 125,000 126,562BOISE PAPER HOLDINGS 9.000 11/01/2017 75,000 79,125BOMBARDIER INC 4.250 01/15/2016 200,000 204,500BOMBARDIER INC 6.125 01/15/2023 2,410,000 2,391,925BON TON DEPT STORES 8.000 06/15/2021 875,000 889,219BONANZA CREEK ENERGY INC 6.750 04/15/2021 5,050,000 5,087,875BRESNAN BROADBAND HOLDING 8.000 12/15/2018 225,000 245,250BRICKMAN GROUP HOLDINGS 9.125 11/01/2018 1,175,000 1,257,250BRIGHTSTAR CORP 9.500 12/01/2016 2,120,000 2,183,600BRISTOW GROUP INC 6.250 10/15/2022 1,885,000 1,932,125PROVINCE OF BRITISH COLUMBIA 2.000 10/23/2022 90,000,000 82,746,000PROVINCE OF BRITISH COLUMBIA 2.650 09/22/2021 140,000,000 139,374,200PROVINCE OF BRITISH COLUMBIA 6.500 01/15/2026 10,000,000 12,962,700BRITISH TELECOM PLC 9.625 12/15/2030 37,550,000 56,529,422BROADCOM CORP 2.500 08/15/2022 18,000,000 16,514,424BROCADE COMMUNICATIONS 4.625 01/15/2023 650,000 604,500BROCADE COMMUNICATIONS 6.875 01/15/2020 500,000 533,750BROOKFIELD RESIDENTIAL 6.500 12/15/2020 250,000 251,875BROWARD COUNTY FLORIDA 6.556 10/01/2040 15,000,000 15,836,850BROWN SHOE CO INC 7.125 05/15/2019 175,000 182,875BRUNSWICK CORP 4.625 05/15/2021 125,000 121,875BRUNSWICK CORP 7.375 09/01/2023 1,000,000 1,045,000BUILDERS FIRSTSOURCE INC 7.625 06/01/2021 300,000 290,250BUILDING MATERIALS CORP 6.750 05/01/2021 1,875,000 1,992,187BUILDING MATERIALS CORP 7.000 02/15/2020 300,000 319,500BUILDING MATERIALS CORP 7.500 03/15/2020 375,000 401,250BUMBLE BEE HOLDINGS INC. 9.625 03/15/2018 500,000 520,000BUMBLE BEE HOLDINGS INC 9.000 12/15/2017 232,000 246,500BURLINGTON NORTH SANTA FE 6.150 05/01/2037 15,000,000 17,415,075BURLINGTON NORTH SANTA FE 6.750 03/15/2029 22,300,000 26,328,205BURLINGTON NORTH SANTA FE 7.290 06/01/2036 10,000,000 12,863,260BURLINGTON NORTH SANTA FE 8.125 04/15/2020 6,650,000 8,442,461BURLINGTON COAT FACTORY 10.000 02/15/2019 994,000 1,098,370BURLINGTON HOLDINGS 9.000 02/15/2018 325,000 333,125BURLINGTON RESOURCES 8.200 03/15/2025 10,000,000 13,316,340BURLINGTON RESOURCES 7.200 08/15/2031 20,000,000 25,829,700BURLINGTON RESOURCES 7.400 12/01/2031 45,980,000 61,249,958CABLEVISION SYSTEMS CORP 5.875 09/15/2022 1,500,000 1,451,250CABLEVISION SYSTEMS CORP 7.750 04/15/2018 250,000 268,750CABLEVISION SYSTEMS CORP 8.000 04/15/2020 4,050,000 4,414,500CAESARS ENTERTAINMENT 8.500 02/15/2020 675,000 636,187CAESARS ENTERTAINMENT 9.000 02/15/2020 250,000 238,125CAESARS ENTERTAINMENT 10.000 12/15/2018 1,000,000 600,000




Fixed Income

June 30, 2013



CAESARS ENTERTAINMENT 11.250% 06/01/2017 $3,275,000 3,410,094CAESARS ENTERTAINMENT 12.750 04/15/2018 900,000 612,000CAESARS OPERATING ESCROW 9.000 02/15/2020 1,975,000 1,886,125CALCIPAR SA 6.875 05/01/2018 225,000 230,625CALFRAC HOLDINGS LP 7.500 12/01/2020 150,000 148,500CALIFORNIA ST PUBLIC WORKS BOARD 7.004 03/01/2035 10,000,000 11,239,100CALPINE CORP 7.250 10/15/2017 247,000 257,497CALPINE CORP 7.500 02/15/2021 2,505,000 2,674,087CALPINE CORP 7.875 07/31/2020 1,795,000 1,947,575CALPINE CORP 7.875 01/15/2023 250,000 268,750CAMERON INTL CORP 6.375 07/15/2018 10,000,000 11,727,540CAMPBELL SOUP CO 2.500 08/02/2022 15,000,000 13,678,590CANADA GOVERNMENT 0.875 02/14/2017 25,000,000 24,877,500CANADIAN NATIONAL RAILWAY 6.250 08/01/2034 19,000,000 23,684,127CANADIAN NATIONAL RAILWAY 6.712 07/15/2036 37,000,000 48,616,224CAPELLA HEALTHCARE 9.250 07/01/2017 1,000,000 1,060,000CAPMARK MILITARY HOUSING TRUST 5.746 02/10/2052 64,060,499 52,664,777CARGILL INC 7.250 11/01/2036 10,000,000 12,868,550CARMIKE CINEMAS INC 7.375 05/15/2019 500,000 537,500CARPENTER TECHNOLOGY 4.450 03/01/2023 1,000,000 974,775CARRIZO OIL + GAS INC 8.625 10/15/2018 600,000 642,000CARROLS RESTAURANT GROUP 11.250 05/15/2018 1,475,000 1,659,375CASCADES INC 7.750 12/15/2017 425,000 443,062CASE NEW HOLLAND INC 7.875 12/01/2017 2,270,000 2,570,775CASELLA WASTE SYSTEMS IN 7.750 02/15/2019 1,000,000 950,000CASTLE (AM) + CO 12.750 12/15/2016 150,000 172,500CATALENT PHARMA SOLUTION 7.875 10/15/2018 4,250,000 4,281,875CATALINA MARKETING CORP 10.500 10/01/2015 1,275,000 1,290,937CATERPILLAR INC 7.900 12/15/2018 10,000,000 12,898,770CB RICHARD ELLIS SERVICE 6.625 10/15/2020 1,000,000 1,055,000CBRE SERVICES INC 5.000 03/15/2023 1,000,000 947,500CBS CORP 7.875 07/30/2030 10,000,000 12,741,310CBS CORP 7.875 09/01/2023 20,000,000 24,755,300CCO HOLDINGS 5.125 02/15/2023 1,800,000 1,687,500CCO HOLDINGS 5.250 09/30/2022 3,450,000 3,277,500CCO HOLDINGS 5.250 03/15/2021 1,000,000 985,000CCO HOLDINGS 5.750 09/01/2023 5,285,000 5,113,237CCO HOLDINGS 5.750 01/15/2024 375,000 361,875CCO HOLDINGS 7.000 01/15/2019 1,225,000 1,298,500CCO HOLDINGS 7.250 10/30/2017 1,500,000 1,591,875CCO HOLDINGS 7.375 06/01/2020 1,000,000 1,087,500CANTOR COMMERICIAL REAL ESTATE 7.750 02/15/2018 400,000 402,000CDW LLC/CDW FINANCE 8.000 12/15/2018 1,025,000 1,114,687CDW LLC/CDW FINANCE 8.500 04/01/2019 700,000 752,500CEDAR FAIR LP/CANADA S W 5.250 03/15/2021 1,000,000 960,000CEDC FINANCIAL CORPORATION INC. 9.125 12/01/2016 900,000 726,003CELANESE US HOLDINGS LLC 4.625 11/15/2022 2,215,000 2,173,469CEMEX FINANCE LLC 9.375 10/12/2022 500,000 545,000CEMEX FINANCE LLC 9.500 12/14/2016 175,000 185,062




Fixed Income

June 30, 2013



CEMEX SAB DE CV 5.276% 09/30/2015 $300,000 305,250CEMEX SAB DE CV 5.875 03/25/2019 1,000,000 970,000CEMEX SAB DE CV 9.000 01/11/2018 525,000 551,250CENGAGE LEARNING ACQUISITION INC. 10.500 01/15/2015 25,000 2,125CENGAGE LEARNING ACQUISITION INC. 11.500 04/15/2020 200,000 147,000CENGAGE LEARNING ACQUISITION INC. 12.000 06/30/2019 825,000 90,750CENTENE CORP 5.750 06/01/2017 200,000 209,500CENTRAL GARDEN + PET CO 8.250 03/01/2018 1,425,000 1,442,812CENTRAL UTAH WATER 5.700 10/01/2040 22,000,000 23,656,380CENTURYLINK INC 5.625 04/01/2020 400,000 404,000CENTURYLINK INC 5.800 03/15/2022 2,800,000 2,758,000CENTURYLINK INC 7.600 09/15/2039 1,900,000 1,805,000CENVEO CORP 8.875 02/01/2018 2,500,000 2,412,500CEQUEL COMMUNICATION HOLDINGS 5.125 12/15/2021 100,000 94,000CEQUEL COMMUNICATION HOLDINGS 6.375 09/15/2020 825,000 839,437CERIDIAN CORP 8.875 07/15/2019 250,000 277,812CERIDIAN CORP 11.000 03/15/2021 1,225,000 1,353,625CF INDUSTRIES INC 3.450 06/01/2023 10,000,000 9,610,150CF INDUSTRIES INC 7.125 05/01/2020 1,500,000 1,794,549CGG 6.500 06/01/2021 200,000 202,000CGG 7.750 05/15/2017 175,000 177,625CGG 9.500 05/15/2016 1,000,000 1,043,750CHAPARRAL ENERGY INC 7.625 11/15/2022 1,820,000 1,856,400CHAPARRAL ENERGY INC 9.875 10/01/2020 375,000 416,250CHC HELICOPTER SA 9.250 10/15/2020 3,725,000 3,818,125CHC HELICOPTER SA 9.375 06/01/2021 800,000 792,000CHECKERS DRIVE IN RESTAU 11.000 12/01/2017 125,000 130,625CHECKOUT HOLDINGS CORP 0.000 11/15/2015 750,000 586,875CHEMTURA CORP 7.875 09/01/2018 1,150,000 1,244,875CHESAPEAKE ENERGY CORP 5.750 03/15/2023 2,500,000 2,531,250CHESAPEAKE ENERGY CORP 6.875 11/15/2020 2,530,000 2,745,050CHESAPEAKE ENERGY CORP 7.250 12/15/2018 500,000 557,500CHESAPEAKE ENERGY CORP 9.500 02/15/2015 750,000 828,750CHESAPEAKE OILFIELD OPERATING CO. 6.625 11/15/2019 225,000 222,750CHESTER DOWNS + MARINA 9.250 02/01/2020 1,350,000 1,302,750CHEVRON CORP 2.355 12/05/2022 45,000,000 42,319,800CHICAGO IL O'HARE INTL AIRPORT 4.000 01/01/2030 10,000,000 8,801,900CHOCTAW RESORT DEVELOPMENT 7.250 11/15/2019 1,025,000 994,250CHOICE HOTELS INTL INC 5.750 07/01/2022 525,000 556,500CHRYSLER GROUP 8.250 06/15/2021 700,000 772,625CHS/COMMUNITY HEALTH SYSTEM 5.125 08/15/2018 2,250,000 2,283,750CHS/COMMUNITY HEALTH SYSTEM 7.125 07/15/2020 500,000 515,000CHS/COMMUNITY HEALTH SYSTEM 8.000 11/15/2019 2,775,000 2,951,906CHURCH + DWIGHT CO INC 2.875 10/01/2022 10,000,000 9,442,740CIGNA CORP 4.375 12/15/2020 10,000,000 10,637,970CIMAREX ENERGY CO 5.875 05/01/2022 175,000 181,125CINCINNATI BELL INC 8.375 10/15/2020 106,000 108,915CINEMARK USA INC 5.125 12/15/2022 125,000 120,625CIT GROUP INC 4.250 08/15/2017 1,450,000 1,457,250




Fixed Income

June 30, 2013



CIT GROUP INC 5.000% 05/15/2017 $850,000 868,062CIT GROUP INC 5.000 08/15/2022 6,300,000 6,252,750CIT GROUP INC 5.250 04/01/2014 700,000 710,500CIT GROUP INC 5.250 03/15/2018 2,200,000 2,260,500CIT GROUP INC 6.625 04/01/2018 4,750,000 5,130,000CITIGROUP INC 5.350 12/31/2049 1,525,000 1,429,687CITYCENTER HOLDINGS 7.625 01/15/2016 400,000 422,000CITYCENTER HOLDINGS 10.750 01/15/2017 574,691 620,666CLAIRE'S STORES INC 6.125 03/15/2020 25,000 24,562CLAIRE'S STORES INC 7.750 06/01/2020 100,000 96,750CLEAN HARBORS INC 5.125 06/01/2021 1,700,000 1,712,750CLEAN HARBORS INC 5.250 08/01/2020 1,500,000 1,522,500CLEAR CHANNEL COMMUNICATIONS 9.000 03/01/2021 3,500,000 3,325,000CLEAR CHANNEL COMMUNICATIONS 9.000 12/15/2019 75,000 72,750CLEAR CHANNEL COMMUNICATIONS 10.750 08/01/2016 375,000 325,312CLEAR CHANNEL COMMUNICATIONS 11.000 08/01/2016 650,000 573,625CLEAR CHANNEL COMMUNICATIONS 11.250 03/01/2021 800,000 824,000CLEAR CHANNEL WORLDWIDE 6.500 11/15/2022 2,025,000 2,075,625CLEAR CHANNEL WORLDWIDE 6.500 11/15/2022 2,525,000 2,600,750CLEAR CHANNEL WORLDWIDE 7.625 03/15/2020 3,135,000 3,229,050CLEAR CHANNEL WORLDWIDE 7.625 03/15/2020 2,950,000 3,053,250CLEARWIRE COMMUNICATIONS 12.000 12/01/2015 1,000,000 1,062,500CLEARWIRE COMMUNICATIONS 12.000 12/01/2017 725,000 839,187CLEAVER BROOKS INC 8.750 12/15/2019 900,000 945,000CLECO POWER LLC 6.650 06/15/2018 10,000,000 11,965,760CLEVELAND ELECTRIC COMPANY 5.700 04/01/2017 17,500,000 19,283,057CMA CGM 8.500 04/15/2017 1,200,000 1,050,000CMS ENERGY CORP 8.750 06/15/2019 600,000 774,104CNG HOLDINGS INC 9.375 05/15/2020 1,425,000 1,368,000CNH CAPITAL LLC 3.625 04/15/2018 225,000 214,312COCA COLA CO/THE 1.150 04/01/2018 98,000,000 95,059,510COCA COLA CO/THE 2.500 04/01/2023 20,000,000 18,934,720COCA COLA CO/THE 3.150 11/15/2020 20,000,000 20,491,820COEUR D ALENE MINES CORP 7.875 02/01/2021 325,000 320,125COGECO CABLE INC 4.875 05/01/2020 400,000 389,000COGENT COMMUNICATIONS GROUP 8.375 02/15/2018 300,000 327,000COLGATE PALMOLIVE CO 2.950 11/01/2020 25,000,000 25,216,150COLORADO SPRINGS CO UTILITIES 5.738 11/15/2050 17,000,000 18,422,220COMCAST CABLE COMMUNICATIONS 9.455 11/15/2022 24,000,000 33,960,912COMMERCIAL METALS CO 4.875 05/15/2023 625,000 575,000COMMSCOPE HOLDINGS INC 6.625 06/01/2020 1,025,000 978,875COMMSCOPE INC 8.250 01/15/2019 1,500,000 1,601,250COMMUNITY CHOICE FINANCIAL 10.750 05/01/2019 450,000 430,875COMPILER FINANCE SUB INC 7.000 05/01/2021 1,175,000 1,130,937CONTINENTAL RUBBER CORP OF AMERICA 4.500 09/15/2019 2,000,000 2,059,350CONAGRA FOODS INC 3.200 01/25/2023 5,000,000 4,781,355CONCHO RESOURCES INC 5.500 04/01/2023 900,000 886,500CONCHO RESOURCES INC 6.500 01/15/2022 2,395,000 2,532,712CONCHO RESOURCES INC 7.000 01/15/2021 1,250,000 1,343,750




Fixed Income

June 30, 2013



CONNECTICUT STATE 5.027% 04/01/2024 $11,000,000 11,900,350CONOCO FUNDING CO 7.250 10/15/2031 16,315,000 21,410,337CONOCO INC 6.950 04/15/2029 65,000,000 82,790,760CONSOLIDATED CONTAINER COMPANY 10.125 07/15/2020 2,675,000 2,808,750CONSOL ENERGY INC 6.375 03/01/2021 150,000 149,250CONSOL ENERGY INC 8.000 04/01/2017 750,000 789,375CONSOL ENERGY INC 8.250 04/01/2020 1,000,000 1,047,500CONSOLIDATEC COMMUNICATIONS 10.875 06/01/2020 725,000 819,250CONSTELLATION BRANDS INC 3.750 05/01/2021 1,775,000 1,661,844CONSTELLATION BRANDS INC 4.250 05/01/2023 1,265,000 1,193,844CONSTELLATION ENTERPRISE 10.625 02/01/2016 275,000 281,875CONTINENTAL RESOURCES 4.500 04/15/2023 950,000 923,875CONTINENTAL RESOURCES 5.000 09/15/2022 4,820,000 4,904,350CONTINENTAL RESOURCES 7.125 04/01/2021 150,000 165,000CONTINENTAL RESOURCES 7.375 10/01/2020 500,000 555,000CONTINTENTAL AIRLINES 7.566 09/15/2021 80,613 83,635CONTINTENTAL AIRLINES 5.500 04/29/2022 50,000 51,625CONTINTENTAL AIRLINES 6.125 04/29/2018 100,000 101,000CONVATEC HEALTHCARE 10.500 12/15/2018 2,000,000 2,185,000COOPER STANDARD AUTOMOTIVE 8.500 05/01/2018 750,000 795,000COOPER STANDARD HOLDINGS 7.375 04/01/2018 2,000,000 1,985,000COOPER TIRE + RUBBER CO 7.625 03/15/2027 750,000 723,750COPANO ENERGY COMPANY 7.125 04/01/2021 1,000,000 1,112,500CORPUS CHRISTI TEXAS UTILITY SYSTEM 6.243 07/15/2040 6,000,000 6,599,460COTT BEVERAGES INC 8.125 09/01/2018 200,000 215,500COVANTA HOLDING CORP 6.375 10/01/2022 2,000,000 2,021,198COVANTA HOLDING CORP 7.250 12/01/2020 150,000 157,288COVIDIEN INTL FINANCE SA 2.950 06/15/2023 20,000,000 18,906,640COX COMMUNICATIONS INC 8.375 03/01/2039 10,000,000 13,553,510CPI INTERNATIONAL INC 8.000 02/15/2018 450,000 463,500CR BARD INC 4.400 01/15/2021 10,000,000 10,633,430CRC HEALTH CORP 10.750 02/01/2016 600,000 609,750CREDIT ACCEPTANCE 9.125 02/01/2017 1,425,000 1,506,937CRESCENT RESOURCES LLC 10.250 08/15/2017 400,000 412,000CRICKET COMMUNICATIONS 7.750 10/15/2020 460,000 441,600CROSSTEX ENERGY 7.125 06/01/2022 175,000 176,750CROWN AMERICA CAPITAL CORP. 4.500 01/15/2023 2,850,000 2,686,125CROWN CASTLE INTL CORP 5.250 01/15/2023 2,615,000 2,510,400CROWN MEDIA HOLDINGS INC 10.500 07/15/2019 1,400,000 1,554,000CROWNROCK LP/CROWNROCK FINANCE 7.125 04/15/2021 600,000 588,000CSC HOLDINGS LLC 7.625 07/15/2018 2,100,000 2,367,750CSC HOLDINGS LLC 8.625 02/15/2019 1,200,000 1,386,000CST BRANDS INC 5.000 05/01/2023 1,750,000 1,706,250CSX CORP 6.150 05/01/2037 15,000,000 17,254,365CSX CORP 6.220 04/30/2040 10,000,000 11,647,490CSX CORP 7.375 02/01/2019 20,000,000 24,667,780CVR REFINING 6.500 11/01/2022 225,000 220,500CYRUSONE FINANCE 6.375 11/15/2022 175,000 179,375DALLAS TX AREA RAPID TRANSIT SYSTEM 6.249 12/01/2034 20,000,000 22,754,800




Fixed Income

June 30, 2013



DANA HOLDING CORP 6.750% 02/15/2021 $1,000,000 1,062,500DARLING INTERNATIONAL INC 8.500 12/15/2018 780,000 862,875DAVE + BUSTER'S INC. 11.000 06/01/2018 2,700,000 2,990,250DAVE + BUSTER'S INC. 0.000 02/15/2016 475,000 368,125DAVITA HEALTHCARE PARTNERS 5.750 08/15/2022 2,025,000 2,019,937DAVITA HEALTHCARE PARTNERS 6.625 11/01/2020 1,250,000 1,325,000DCP CORP 10.750 08/15/2015 1,500,000 1,560,000DEERE + COMPANY 5.375 10/16/2029 30,000,000 34,560,390DEL MONTE CORP 7.625 02/15/2019 3,500,000 3,596,250DELPHI CORP 5.000 02/15/2023 2,105,000 2,162,887DELUXE CORP 7.000 03/15/2019 1,250,000 1,318,750DENBURY RESOURCES INC 4.625 07/15/2023 2,200,000 2,029,500DENBURY RESOURCES INC 8.250 02/15/2020 250,000 270,000DEVELOPMENT BANK OF JAPAN 5.125 02/01/2017 25,000,000 28,227,500DEVON ENERGY CORPORATION 7.950 04/15/2032 30,000,000 39,265,260DEVON FINANCING CO LLC 7.875 09/30/2031 51,000,000 66,037,860DIAGEO CAPITAL PLC 1.125 04/29/2018 15,000,000 14,411,055DIAGEO CAPITAL PLC 2.625 04/29/2023 15,000,000 13,954,335DIAMOND OFFSHORE DRILLING 5.875 05/01/2019 10,000,000 11,752,550DIAMOND RESORTS CORP 12.000 08/15/2018 1,775,000 1,943,625DIGICEL GROUP LTD 8.250 09/30/2020 975,000 1,009,125DIGICEL LIMITED 6.000 04/15/2021 1,500,000 1,417,500DIGICEL LIMITED 8.250 09/01/2017 750,000 780,000DIGITALGLOBE INC 5.250 02/01/2021 4,200,000 4,032,000DINEEQUITY INC 9.500 10/30/2018 2,200,000 2,442,000DIRECTBUY HOLDINGS INC. 12.000 10/31/2019 73,107 54,830DISH DBS CORP 4.250 04/01/2018 1,350,000 1,323,000DISH DBS CORP 4.625 07/15/2017 275,000 276,375DISH DBS CORP 5.125 05/01/2020 2,150,000 2,107,000DISH DBS CORP 6.625 10/01/2014 2,000,000 2,085,000DISH DBS CORP 6.750 06/01/2021 6,550,000 6,959,375DISH DBS CORP 7.000 10/01/2013 210,000 212,310DISH DBS CORP 7.125 02/01/2016 1,600,000 1,732,000DISH DBS CORP 7.875 09/01/2019 1,000,000 1,120,000DISH DBS CORP 7.875 09/01/2019 525,000 588,000DIST OF COLUMBIA WATER & SEWER 5.522 10/01/2044 3,000,000 3,335,490DJO FINANCE CORPORATION 9.750 10/15/2017 1,000,000 1,020,000DJO FINANCE CORPORATION 9.875 04/15/2018 1,250,000 1,306,250DOMINION RESOURCES INC 5.950 06/15/2035 25,000,000 28,922,550DOW CHEMICAL CO/THE 7.375 11/01/2029 21,000,000 26,445,783DRILL RIGS HOLDING INC. 6.500 10/01/2017 325,000 324,187DUFRY FINANCE 5.500 10/15/2020 1,850,000 1,854,888DUKE ENERGY CAROLINAS 6.000 12/01/2028 19,000,000 21,223,494DUKE ENERGY CORP 6.250 06/15/2018 12,500,000 14,610,775DUKE ENERGY FLORIDA INC 4.550 04/01/2020 12,000,000 13,260,096DUKE ENERGY FLORIDA INC 5.650 04/01/2040 15,000,000 17,063,205DUKE ENERGY FLORIDA INC 6.350 09/15/2037 10,000,000 12,143,120DUKE ENERGY INDIANA INC 6.450 04/01/2039 15,000,000 18,539,115DUKE ENERGY OHIO INC 5.400 06/15/2033 10,000,000 10,137,910




Fixed Income

June 30, 2013



DUKE ENERGY OHIO INC 6.900% 06/01/2025 $10,000,000 12,373,400DYNACAST INTL 9.250 07/15/2019 75,000 81,750DYNEGY INC 5.875 06/01/2023 325,000 295,750E TRADE FINANCIAL CORP 0.000 08/31/2019 145,000 178,259E TRADE FINANCIAL CORP 6.000 11/15/2017 2,000,000 2,020,000E TRADE FINANCIAL CORP 6.375 11/15/2019 5,825,000 5,912,375E.I. DU PONT DE NEMOURS 6.000 07/15/2018 10,000,000 11,815,420EAGLE MIDCO INC 9.000 06/15/2018 100,000 97,500EAGLE ROCK ENTERTAINMENT PARTNERS 8.375 06/01/2019 500,000 508,750EAGLE SPINCO INC 4.625 02/15/2021 2,650,000 2,544,000EARTHLINK INC 7.375 06/01/2020 250,000 240,000EARTHLINK INC 8.875 05/15/2019 450,000 437,625EASTMAN CHEMICAL CO 4.500 01/15/2021 10,000,000 10,496,010EDISON MISSION ENERGY 7.500 06/15/2013 275,000 154,687EKSPORTFINANS ASA 2.375 05/25/2016 10,000,000 9,575,000EKSPORTFINANS ASA 5.500 06/26/2017 25,000,000 25,875,000EL PASO LLC 7.000 06/15/2017 3,995,000 4,343,200EL PASO LLC 7.250 06/01/2018 1,500,000 1,661,587ELI LILLY + CO 5.500 03/15/2027 73,750,000 84,919,806EMC CORP 1.875 06/01/2018 100,000,000 98,850,300EMDEON INC 11.000 12/31/2019 1,425,000 1,606,687ENCANA CORP 6.500 02/01/2038 10,000,000 11,111,280ENCANA CORP 6.625 08/15/2037 20,000,000 22,358,980ENDO HEALTH SOLUTIONS INC 7.000 12/15/2020 1,000,000 1,003,750ENDO HEALTH SOLUTIONS INC 7.000 07/15/2019 250,000 252,500ENDO HEALTH SOLUTIONS INC 7.250 01/15/2022 1,225,000 1,234,187ENERGY FUTURE HOLDINGS 10.875 11/01/2017 418,000 341,715ENERGY FUTURE HOLDINGS 6.875 08/15/2017 375,000 380,625ENERGY FUTURE HOLDINGS 10.000 12/01/2020 174,000 190,530ENERGY FUTURE HOLDINGS 10.000 12/01/2020 3,265,000 3,567,012ENERGY FUTURE HOLDINGS 11.250 12/01/2018 635,933 537,363ENERGY FUTURE HOLDINGS 12.250 03/01/2022 1,975,000 2,182,375ENERGY TRANSFER EQUITY 7.500 10/15/2020 450,000 491,625ENERGY XXI GULF COAST INC 9.250 12/15/2017 3,625,000 3,978,438ENERGYSOLUTIONS INC/LLC 10.750 08/15/2018 4,750,000 5,118,125ENTERGY ARKANSAS INC 3.050 06/01/2023 10,000,000 9,538,090ENTERGY GULF STATES LA 6.000 05/01/2018 20,000,000 22,770,900ENTERGY TEXAS INC 7.125 02/01/2019 20,000,000 23,853,360ENTRAVISION COMMUNICATIONS 8.750 08/01/2017 633,000 674,936ENVISION HEALTHCARE CORP 8.125 06/01/2019 1,000,000 1,062,500ENVISION HEALTHCARE HOLDINGS 9.250 10/01/2017 2,500,000 2,531,250EP ENERGY & EVEREST AQUISITON 6.875 05/01/2019 750,000 800,625EP ENERGY & EVEREST AQUISITON 7.750 09/01/2022 500,000 535,000EP ENERGY & EVEREST AQUISITON 9.375 05/01/2020 3,000,000 3,375,000EP ENERGY & EVEREST AQUISITON 8.125 12/15/2017 1,564,342 1,595,629EPR PROPERTIES 7.750 07/15/2020 1,000,000 1,135,469EQUINIX INC 4.875 04/01/2020 1,275,000 1,249,500EQUINIX INC 5.375 04/01/2023 4,675,000 4,581,500EQUINIX INC 7.000 07/15/2021 915,000 992,775




Fixed Income

June 30, 2013



ERICKSON AIR CRANE INC 8.250% 05/01/2020 $1,800,000 1,750,500ESSAR STEEL ALGOMA INC 9.375 03/15/2015 150,000 142,500ESSAR STEEL ALGOMA INC 9.875 06/15/2015 250,000 192,500ESTERLINE TECHNOLOGIES 7.000 08/01/2020 750,000 804,375EV ENERGY PARTNERS/FINANCE 8.000 04/15/2019 100,000 101,000EXIDE TECHNOLOGIES 8.625 02/01/2018 500,000 305,000EXOPACK HOLDNG CORP. 10.000 06/01/2018 475,000 480,937EXPRO FINANCE LUXEMBOURG 8.500 12/15/2016 1,375,000 1,443,750EXTERRAN PARTNERS 6.000 04/01/2021 1,675,000 1,649,875FAGE DAIRY INDUSTRIES 9.875 02/01/2020 2,025,000 2,181,937FED HM LN PC POOL 170225 8.000 05/01/2017 2,155 2,268FED HM LN PC POOL C00502 6.500 02/01/2027 88,851 98,534FED HM LN PC POOL C00503 6.500 03/01/2027 328,665 366,413FED HM LN PC POOL C00527 6.500 04/01/2027 271,778 301,965FED HM LN PC POOL C00547 6.500 08/01/2027 854,633 979,680FED HM LN PC POOL C00626 6.000 06/01/2028 532,809 591,168FED HM LN PC POOL C00643 6.500 08/01/2028 217,552 249,926FED HM LN PC POOL C00680 6.000 11/01/2028 368,413 408,765FED HM LN PC POOL C00690 6.000 12/01/2028 582,298 646,077FED HM LN PC POOL C00716 6.000 02/01/2029 2,691,727 2,986,553FED HM LN PC POOL C18120 6.000 11/01/2028 748,436 830,413FED HM LN PC POOL C19256 6.000 12/01/2028 115,202 127,820FED HM LN PC POOL C21002 6.000 01/01/2029 315,620 350,190FED HM LN PC POOL C21724 6.000 02/01/2029 108,191 118,795FED HM LN PC POOL C22140 6.000 02/01/2029 120,508 130,734FED HM LN PC POOL C22347 6.000 02/01/2029 407,655 452,305FED HM LN PC POOL C80378 6.500 01/01/2026 584,892 655,177FED HM LN PC POOL D28992 7.500 01/01/2023 103,036 115,785FED HM LN PC POOL D35835 6.500 06/01/2023 42,349 47,683FED HM LN PC POOL D66640 6.500 12/01/2025 195,139 216,265FED HM LN PC POOL D67214 6.500 01/01/2026 208,596 230,749FED HM LN PC POOL D68718 6.500 02/01/2026 110,383 122,438FED HM LN PC POOL D78434 6.500 02/01/2027 213,225 237,499FED HM LN PC POOL D78438 7.000 02/01/2027 35,639 41,552FED HM LN PC POOL E00721 6.500 07/01/2014 62,436 63,649FED HM LN PC POOL E00746 7.000 09/01/2014 11,124 11,382FED HM LN PC POOL E78431 7.000 09/01/2014 26,144 26,874FED HM LN PC POOL E78663 6.500 10/01/2014 39,760 40,749FED HM LN PC POOL G00444 6.500 02/01/2026 401,598 459,344FED HM LN PC POOL G00445 6.500 02/01/2026 473,637 541,741FED HM LN PC POOL G00678 6.500 02/01/2027 203,025 232,218FEDERAL HOME LOAN BANKS 5.065 10/20/2015 4,506,097 4,802,904FEDEX CORP 2.700 04/15/2023 5,000,000 4,608,775FIDELITY + GUARANTY LIFE 6.375 04/01/2021 2,400,000 2,328,000FIESTA RESTAURANT GROUP 8.875 08/15/2016 125,000 133,125FIFTH + PACIFIC CO INC 10.500 04/15/2019 150,000 163,875FIRST DATA CORPORATION 6.750 11/01/2020 3,750,000 3,815,625FIRST DATA CORPORATION 7.375 06/15/2019 1,075,000 1,104,563FIRST DATA CORPORATION 8.250 01/15/2021 2,500,000 2,550,000




Fixed Income

June 30, 2013



FIRST DATA CORPORATION 10.625% 06/15/2021 $850,000 839,375FIRST DATA CORPORATION 11.250 03/31/2016 666,000 651,015FIRST DATA CORPORATION 11.250 01/15/2021 750,000 748,125FIRST DATA CORPORATION 11.750 08/15/2021 2,350,000 2,115,000FIRST DATA CORPORATION 12.625 01/15/2021 6,050,000 6,397,875FIRST QUALITY FINANCE CO 4.625 05/15/2021 2,840,000 2,698,000FIRSTENERGY CORP 2.750 03/15/2018 15,000,000 14,603,055FIRSTENERGY CORP 7.375 11/15/2031 20,000,000 21,091,920FLORIDA POWER + LIGHT 2.750 06/01/2023 55,000,000 52,874,085FLORIDA POWER + LIGHT 5.950 10/01/2033 30,000,000 36,474,030FLORIDA ST DEP 7.045 07/01/2029 10,250,000 11,364,277FLORIDA ST DEPT. OF MGMT SERVICES 6.825 08/01/2029 15,000,000 17,294,400FLORIDA ST HURRICANE CATASTROPHE 2.995 07/01/2020 25,000,000 23,426,000FMG RESOURCES AUG 2006 6.000 04/01/2017 350,000 340,375FMG RESOURCES AUG 2006 6.875 04/01/2022 1,275,000 1,236,750FMG RESOURCES AUG 2006 7.000 11/01/2015 500,000 505,000FMG RESOURCES AUG 2006 8.250 11/01/2019 2,250,000 2,317,500FNMA POOL 050726 7.000 05/01/2023 88,667 101,752FNMA POOL 050747 7.000 06/01/2023 291,847 334,917FNMA POOL 050965 6.500 01/01/2024 517,035 584,926FNMA POOL 125229 6.500 09/01/2023 78,171 88,435FNMA POOL 218769 7.000 06/01/2023 227,805 261,423FNMA POOL 250004 6.500 04/01/2024 600,211 681,806FNMA POOL 250485 6.500 02/01/2026 275,780 314,300FNMA POOL 250780 7.000 12/01/2026 161,788 187,902FNMA POOL 250820 7.000 01/01/2027 68,933 80,059FNMA POOL 253702 6.000 03/01/2016 361,465 375,500FNMA POOL 254198 6.000 02/01/2032 2,233,020 2,459,263FNMA POOL 254262 6.000 04/01/2032 1,138,181 1,253,845FNMA POOL 313210 7.000 12/01/2026 128,337 149,051FNMA POOL 313270 7.000 01/01/2027 59,755 69,400FNMA POOL 313340 6.500 02/01/2027 938,080 1,069,110FNMA POOL 323789 6.000 06/01/2014 247,786 251,352FNMA POOL 325360 6.500 01/01/2026 198,142 218,831FNMA POOL 331912 6.500 12/01/2025 99,196 109,794FNMA POOL 356246 7.000 12/01/2026 76,328 88,648FNMA POOL 356254 7.000 12/01/2026 9,163 10,641FNMA POOL 356705 7.000 09/01/2026 46,805 52,459FNMA POOL 480414 6.000 04/01/2014 38,315 38,728FNMA POOL 488143 6.000 03/01/2014 44,200 44,612FNMA POOL 545063 6.000 06/01/2031 1,107,050 1,219,214FNMA POOL 545567 6.000 04/01/2032 1,471,988 1,621,126FNMA POOL 567666 6.000 02/01/2016 189,850 196,324FNMA POOL 615045 6.000 01/01/2032 440,246 484,850FNMA POOL 617088 6.000 12/01/2031 772,043 838,822FNMA POOL 619030 6.000 01/01/2032 284,524 313,351FNMA POOL 634473 6.000 03/01/2032 117,484 129,423FORBES ENERGY SERVICES 9.000 06/15/2019 590,000 581,150FORD MOTOR COMPANY 7.450 07/16/2031 1,000,000 1,197,215




Fixed Income

June 30, 2013



FORD MOTOR COMPANY 9.215% 09/15/2021 $1,000,000 1,262,979FORD MOTOR CREDIT CO LLC 3.875 01/15/2015 200,000 206,149FORESIGHT ENERGY LL/CORP 9.625 08/15/2017 1,700,000 1,785,000FOREST OIL CORPORATION 7.250 06/15/2019 1,220,000 1,146,800FQM AKUBRA INC 7.500 06/01/2021 1,150,000 1,101,125FTS INTERNATIONAL SERVICES 8.125 11/15/2018 49,000 50,838FREDDIE MAC 5.500 06/15/2034 16,693,610 17,161,315FREDDIE MAC 5.500 10/15/2034 16,879,313 17,084,329FREDDIE MAC 5.500 01/15/2035 4,304,891 4,345,564FREDDIE MAC 5.500 06/15/2035 12,574,351 12,802,512FREEPORT MCMORAN 3.550 03/01/2022 50,000,000 45,417,850FREESCALE SEMICONDUCTOR 5.000 05/15/2021 500,000 475,000FRESENIUS MEDICAL CARE 5.625 07/31/2019 1,000,000 1,040,000FRESENIUS MEDICAL CARE 5.875 01/31/2022 300,000 315,750FRESENIUS MEDICAL CARE 6.500 09/15/2018 500,000 543,750FRESENIUS US FINANCE II 9.000 07/15/2015 2,100,000 2,320,500FRONTIER COMMUNICATIONS 7.125 03/15/2019 2,250,000 2,368,125FRONTIER COMMUNICATIONS 7.125 01/15/2023 125,000 124,375FRONTIER COMMUNICATIONS 7.625 04/15/2024 1,200,000 1,203,000FRONTIER COMMUNICATIONS 8.125 10/01/2018 425,000 466,437FRONTIER COMMUNICATIONS 8.500 04/15/2020 50,000 55,125FRONTIER COMMUNICATIONS 9.250 07/01/2021 1,000,000 1,142,500FTI CONSULTING INC 6.750 10/01/2020 100,000 105,250GANNETT CO INC 9.375 11/15/2017 1,600,000 1,700,000GARDA WORLD SECURITY CORP 9.750 03/15/2017 375,000 396,562GARDA WORLD SECURITY CORP 9.750 03/15/2017 225,000 237,937GCI INC 6.750 06/01/2021 25,000 23,375GCI INC 8.625 11/15/2019 250,000 256,250GENCORP INC 7.125 03/15/2021 2,825,000 2,923,875GENERAL ELECTRIC CAPITAL CORP. 5.250 12/31/2049 4,000,000 3,820,000GENERAL ELECTRIC CAPITAL CORP. 5.375 10/20/2016 10,000,000 11,158,170GENERAL ELECTRIC CAPITAL CORP. 5.550 05/04/2020 25,000,000 28,239,475GENERAL ELECTRIC CAPITAL CORP. 5.625 05/01/2018 15,000,000 17,205,060GENERAL ELECTRIC CAPITAL CORP. 6.250 12/31/2049 2,000,000 2,125,000GENERAL ELECTRIC CAPITAL CORP. 6.750 03/15/2032 40,000,000 47,961,000GENERAL ELECTRIC CAPITAL CORP. 7.125 12/31/2049 1,150,000 1,299,500GENERAL ELECTRIC CO 5.250 12/06/2017 35,000,000 39,520,145GENERAL MOTORS FINANCIAL CO. 2.750 05/15/2016 150,000 147,562GENERAL MOTORS FINANCIAL CO. 3.250 05/15/2018 1,600,000 1,556,000GENERAL MOTORS FINANCIAL CO. 4.250 05/15/2023 3,125,000 2,910,156GENESIS ENERGY 5.750 02/15/2021 3,700,000 3,607,500GENESIS ENERGY 7.875 12/15/2018 1,185,000 1,267,950GENON ENERGY INC 7.875 06/15/2017 2,415,000 2,565,938GENON ENERGY INC 9.500 10/15/2018 2,800,000 3,108,000GENON ENERGY INC 9.875 10/15/2020 575,000 632,500GENWORTH HOLDINGS INC 6.150 11/15/2066 1,775,000 1,539,813GEO GROUP INC/THE 5.125 04/01/2023 2,900,000 2,769,500GEO GROUP INC/THE 6.625 02/15/2021 400,000 420,000GEORGE WASHINGTON UNIVERSITY 3.485 09/15/2022 15,000,000 14,683,125




Fixed Income

June 30, 2013



GESTAMP FUND 5.625% 05/31/2020 $275,000 261,250GETCO FINANCE ESCROW 8.250 06/15/2018 375,000 354,375GIBRALTAR INDUSTRIES INC 6.250 02/01/2021 2,125,000 2,199,375GIBSON ENERGY INC 6.750 07/15/2021 1,000,000 997,500GLAXOSMITHKLINE CAPITAL INC. 0.700 03/18/2016 20,000,000 19,816,540GLAXOSMITHKLINE CAPITAL INC. 2.800 03/18/2023 20,000,000 19,033,020GLAXOSMITHKLINE CAPITAL INC. 1.500 05/08/2017 20,000,000 19,864,340GLOBAL BRASS AND COPPER 9.500 06/01/2019 800,000 856,000GNMA POOL 175343 6.500 06/15/2029 758,391 851,268GNMA POOL 412571 7.000 03/15/2026 142,933 166,279GNMA POOL 415137 6.500 03/15/2026 128,846 144,143GNMA POOL 417239 7.000 02/15/2026 142,532 165,812GNMA POOL 417390 7.000 05/15/2026 178,059 207,142GNMA POOL 417425 7.000 05/15/2026 115,812 134,728GNMA POOL 423799 7.000 06/15/2026 180,144 209,567GNMA POOL 434344 6.500 05/15/2029 1,025,180 1,181,067GNMA POOL 434381 6.500 06/15/2029 760,011 875,787GNMA POOL 434395 6.500 06/15/2029 996,098 1,147,712GNMA POOL 447918 6.500 05/15/2028 316,875 364,335GNMA POOL 458832 6.500 03/15/2028 451,371 504,285GNMA POOL 458878 6.500 04/15/2028 141,337 156,750GNMA POOL 461517 6.500 04/15/2028 194,614 215,533GNMA POOL 462497 6.500 01/15/2028 174,410 194,370GNMA POOL 465523 6.500 04/15/2028 310,494 345,551GNMA POOL 472923 7.500 11/15/2029 20,404 22,258GNMA POOL 474160 6.500 04/15/2028 186,356 207,445GNMA POOL 480400 6.500 08/15/2028 590,183 657,891GNMA POOL 482104 6.500 08/15/2028 511,152 570,890GNMA POOL 482576 6.500 06/15/2029 46,689 53,778GNMA POOL 486760 6.500 12/15/2028 405,145 466,910GNMA POOL 486958 6.500 02/15/2029 382,361 440,510GNMA POOL 487035 6.500 03/15/2029 803,308 925,286GNMA POOL 487601 6.500 04/15/2029 1,249,686 1,444,946GNMA POOL 487602 6.500 05/15/2029 1,169,127 1,346,969GNMA POOL 487616 6.500 06/15/2029 2,060,287 2,382,283GNMA POOL 490228 7.000 08/15/2029 27,356 31,998GNMA POOL 491467 6.500 05/15/2029 561,335 646,571GNMA POOL 491479 6.500 06/15/2029 726,626 816,671GNMA POOL 492738 7.000 06/15/2029 227,224 265,779GNMA POOL 493850 6.500 04/15/2029 289,747 333,743GNMA POOL 502710 7.000 06/15/2029 49,460 57,852GNMA POOL 506479 6.500 04/15/2029 322,276 358,413GNMA POOL 506571 6.500 05/15/2029 474,236 529,879GNMA POOL 507844 6.500 05/15/2029 663,912 744,200GNMA POOL 509295 6.500 05/15/2029 775,015 893,257GNMA POOL 509337 6.500 06/15/2029 973,593 1,125,319GNMA POOL 529217 7.500 01/15/2030 56,916 62,622GNMA POOL 780509 6.500 02/15/2027 634,470 682,202GNMA POOL 780615 6.500 08/15/2027 347,530 392,772




Fixed Income

June 30, 2013



GOOD SAM ENTERPRISES LLC 11.500% 12/01/2016 $1,700,000 1,810,500GRAFTECH INTERNATIONAL 6.375 11/15/2020 200,000 201,500GRAPHIC PACKAGING INTL 7.875 10/01/2018 525,000 567,000GRATON ECONOMIC DEV AUTHORITY 9.625 09/01/2019 1,475,000 1,615,125GRAY TELEVISION INC 7.500 10/01/2020 450,000 459,000GREAT LAKES DREDGE+DOCK 7.375 02/01/2019 75,000 77,719GREEKTOWN SUPERHOLDINGS 13.000 07/01/2015 800,000 850,000GREEKTOWN SUPERHOLDINGS 13.000 07/01/2015 850,000 903,125GREIF INC 7.750 08/01/2019 100,000 114,500GRIFFEY INTERMEDIATE INC. 7.000 10/15/2020 2,750,000 2,653,750GRIFFON CORPORATION 7.125 04/01/2018 750,000 785,625GRIFOLS INC 8.250 02/01/2018 2,925,000 3,144,375GRUPO FAMSA SA DE CV 7.250 06/01/2020 2,000,000 1,927,894GTE CORP 8.750 11/01/2021 20,000,000 26,290,780GULFPORT ENERGY CORP 7.750 11/01/2020 150,000 151,875GWR OPERATING PARTNERSHP 10.875 04/01/2017 400,000 437,000GYMBOREE CORP 9.125 12/01/2018 1,000,000 940,000H+E EQUIPMENT SERVICES 7.000 09/01/2022 325,000 338,813HALCON RESOURCES CORP 8.875 05/15/2021 3,275,000 3,176,750HALCON RESOURCES CORP 9.750 07/15/2020 2,000,000 1,995,000HANESBRANDS INC 6.375 12/15/2020 2,320,000 2,473,700HANESBRANDS INC 8.000 12/15/2016 2,000,000 2,125,000HAPAG LLOYD AG 9.750 10/15/2017 300,000 307,500HARBINGER GROUP INC 7.875 07/15/2019 2,100,000 2,147,250HARLAND CLARKE HOLDINGS 9.750 08/01/2018 550,000 572,000HAWAIIAN AIRLINES 4.950 01/15/2022 100,000 94,750HAWK ACQUISITION SUB INC 4.250 10/15/2020 3,050,000 2,916,563HCA HOLDINGS INC 6.250 02/15/2021 2,350,000 2,397,000HCA HOLDINGS INC 7.750 05/15/2021 3,900,000 4,212,000HCA HOLDINGS INC 4.750 05/01/2023 2,100,000 2,010,750HCA HOLDINGS INC 5.875 03/15/2022 3,975,000 4,079,344HCA HOLDINGS INC 5.875 05/01/2023 2,525,000 2,531,313HCA HOLDINGS INC 6.375 01/15/2015 1,375,000 1,440,313HCA HOLDINGS INC 6.500 02/15/2020 1,950,000 2,109,656HCA HOLDINGS INC 7.190 11/15/2015 2,750,000 2,970,000HCA HOLDINGS INC 7.250 09/15/2020 1,500,000 1,610,625HCA HOLDINGS INC 7.500 02/15/2022 1,675,000 1,855,063HCA HOLDINGS INC 7.875 02/15/2020 1,175,000 1,265,328HCA HOLDINGS INC 8.000 10/01/2018 1,000,000 1,148,750HCA HOLDINGS INC 8.360 04/15/2024 300,000 339,000HCA HOLDINGS INC 8.500 04/15/2019 1,970,000 2,114,056HD SUPPLY INC 7.500 07/15/2020 4,000,000 4,050,000HD SUPPLY INC 8.125 04/15/2019 1,000,000 1,095,000HD SUPPLY INC 10.500 01/15/2021 3,750,000 3,881,250HD SUPPLY INC 11.000 04/15/2020 2,175,000 2,533,875HD SUPPLY INC 11.500 07/15/2020 2,250,000 2,610,000HEADWATERS INC 7.625 04/01/2019 150,000 156,750HEALTH MANAGEMENT ASSOCIATION 7.375 01/15/2020 1,250,000 1,370,313HEALTH NET INC 6.375 06/01/2017 750,000 779,063




Fixed Income

June 30, 2013



HEALTHSOUTH CORP 7.250% 10/01/2018 $243,000 259,403HECLA MINING CO 6.875 05/01/2021 2,275,000 2,110,063HEINZ (H.J.) FINANCE CO 7.125 08/01/2039 1,500,000 1,590,000HELIX ENERGY SOLUTIONS 9.500 01/15/2016 1,000,000 1,027,000HERCULES OFFSHORE INC 7.125 04/01/2017 3,000,000 3,187,500HERCULES OFFSHORE INC 8.750 07/15/2021 140,000 140,000HERCULES OFFSHORE INC 10.250 04/01/2019 325,000 354,250HERCULES OFFSHORE LLC 10.500 10/15/2017 2,450,000 2,615,375HERSHEY COMPANY 2.625 05/01/2023 10,000,000 9,471,010HERTZ CORP 5.875 10/15/2020 200,000 206,000HERTZ CORP 6.250 10/15/2022 75,000 78,281HERTZ CORP 6.750 04/15/2019 1,325,000 1,401,188HERTZ CORP 7.375 01/15/2021 1,075,000 1,163,688HESS CORP 7.875 10/01/2029 66,000,000 82,464,954HESS CORP 8.125 02/15/2019 25,000,000 31,337,050HEWLETT PACKARD CO 2.650 06/01/2016 8,000,000 8,154,400HEWLETT PACKARD CO 3.750 12/01/2020 10,000,000 9,679,590HEXION US FINANCE CORP. 8.875 02/01/2018 2,000,000 2,040,000HEXION US FINANCE CORP. 9.000 11/15/2020 1,750,000 1,671,250HEXION US FINANCE CORP 6.625 04/15/2020 750,000 748,125HEXION US FINANCE CORP 6.625 04/15/2020 1,800,000 1,795,500HILAND PARTNERS 7.250 10/01/2020 275,000 283,250HILCORP ENERGY 7.625 04/15/2021 3,890,000 4,123,400HILLMAN GROUP INC 10.875 06/01/2018 350,000 378,875HISTORIC TW INC 9.150 02/01/2023 12,000,000 16,293,120HOA RESTAURANT GROUP 11.250 04/01/2017 175,000 175,000HOLLY ENERGY PARTNERS LP 6.500 03/01/2020 2,140,000 2,156,050HOLLY ENERGY PARTNERS LP 8.250 03/15/2018 375,000 396,563HOLOGIC INC 6.250 08/01/2020 2,527,000 2,620,183HONOLULU CITY & CNTY WASTEWATER 6.121 07/01/2040 15,000,000 16,619,850HORIZON LINES LLC 11.000 10/15/2016 1,349,000 1,342,255HORIZON LINES LLC 13.000 10/15/2016 380,367 353,741HUB INTERNATIONAL LTD 8.125 10/15/2018 6,100,000 6,344,000HUGHES SATELITE SYSTEMS 6.500 06/15/2019 150,000 159,000HUGHES SATELLITE SYSTEMS 7.625 06/15/2021 4,250,000 4,515,625HUNTINGTON INGALLS INDUSTRIES 7.125 03/15/2021 750,000 806,250HUNTSMAN INTERNATIONAL 4.875 11/15/2020 1,600,000 1,580,000HUNTSMAN INTERNATIONAL 8.625 03/15/2020 1,250,000 1,359,375HUNTSMAN INTERNATIONAL 8.625 03/15/2021 1,000,000 1,097,500HYDRO QUEBEC 8.050 07/07/2024 33,000,000 45,385,923HYDRO QUEBEC 8.500 12/01/2029 69,000,000 102,041,685HYDRO QUEBEC 9.500 11/15/2030 13,000,000 20,820,982HYVA GLOBAL 8.625 03/24/2016 250,000 235,000IAC/INTERACTIVECORP 4.750 12/15/2022 5,700,000 5,386,500IAMGOLD CORP 6.750 10/01/2020 600,000 507,000IASIS HEALTHCARE 8.375 05/15/2019 3,750,000 3,785,156IBERDROLA INTERNATIONAL 6.750 07/15/2036 20,000,000 20,745,760IBM CORP 1.625 05/15/2020 20,000,000 18,722,540IBM CORP 6.220 08/01/2027 10,000,000 12,324,980




Fixed Income

June 30, 2013



IBM CORP 6.500% 01/15/2028 $24,000,000 30,204,336IBM CORP 7.000 10/30/2025 15,000,000 19,708,305IBM CORP 8.375 11/01/2019 23,000,000 30,809,673INTL BANK FOR RECONSTRUCTION 0.000 07/15/2017 23,500,000 21,786,145ICAHN ENTERPRISES 7.750 01/15/2016 1,500,000 1,548,750ICAHN ENTERPRISES 8.000 01/15/2018 2,775,000 2,913,750ICON HEALTH + FITNESS 11.875 10/15/2016 150,000 123,000IDEARC INC 8.000 11/15/2016 365,000 —IFM US COLONIAL PIPELINE 6.450 05/01/2021 125,000 133,951IGATE CORP 9.000 05/01/2016 1,375,000 1,430,000IGLOO HOLDINGS CORP 8.250 12/15/2017 3,175,000 3,238,500ILFC E CAPITAL TRUST 1.826 12/21/2065 100,000 85,000ILLINOIS STATE 5.000 07/01/2028 11,000,000 11,260,700IMMUCOR INC 11.125 08/15/2019 1,000,000 1,085,000IMS HEALTH INC 6.000 11/01/2020 2,500,000 2,543,750INC RESEARCH LLC 11.500 07/15/2019 475,000 510,625INDIANA ST FINANCIAL AUTH REVENUE 6.596 02/01/2039 5,000,000 6,144,950INEOS FINANCE PLC 7.500 05/01/2020 250,000 265,625INEOS FINANCE PLC 8.375 02/15/2019 500,000 546,250INEOS GROUP HOLDINGS SA 6.125 08/15/2018 2,375,000 2,268,125INERGY FINANCIAL CORP 7.000 10/01/2018 1,000,000 1,005,000INERGY MIDSTREAM 6.000 12/15/2020 1,250,000 1,206,250INFOR US INC 9.375 04/01/2019 3,275,000 3,549,281ING US INC 5.650 05/15/2053 2,000,000 1,860,000INMARSAT FINANCE PLC 7.375 12/01/2017 1,000,000 1,040,000INMET MINING CORP 8.750 06/01/2020 3,000,000 3,067,500INTELSAT JACKSON HOLDINGS 5.500 08/01/2023 1,325,000 1,245,500INTELSAT JACKSON HOLDINGS 6.625 12/15/2022 1,500,000 1,455,000INTELSAT JACKSON HOLDINGS 7.250 10/15/2020 1,650,000 1,732,500INTELSAT JACKSON HOLDINGS 7.250 04/01/2019 1,350,000 1,412,438INTELSAT JACKSON HOLDINGS 7.500 04/01/2021 500,000 525,000INTELSAT JACKSON HOLDINGS 8.500 11/01/2019 1,400,000 1,508,500INTELSAT LUXEMBOURG SA 6.750 06/01/2018 300,000 302,250INTELSAT LUXEMBOURG SA 7.750 06/01/2021 1,975,000 1,994,750INTELSAT LUXEMBOURG SA 8.125 06/01/2023 3,025,000 3,123,313INTER AMERICAN DEVELOPMENT BANK 1.375 07/15/2020 50,000,000 47,120,800INTER AMERICAN DEVELOPMENT BANK 3.200 08/07/2042 25,000,000 21,382,000INTER AMERICAN DEVELOPMENT BANK 3.875 09/17/2019 25,000,000 27,525,075INTER AMERICAN DEVELOPMENT BANK 3.875 02/14/2020 10,000,000 11,106,590INTER AMERICAN DEVELOPMENT BANK 7.000 06/15/2025 18,000,000 24,200,604INTERACTIVE DATA CORP 10.250 08/01/2018 625,000 690,625INTERGEN 7.000 06/30/2023 750,000 731,250INTERLINE BRANDS INC 10.000 11/15/2018 400,000 430,000INTERLINE BRANDS INC 7.500 11/15/2018 1,278,000 1,341,900INTERTAPE POLYMER US INC 8.500 08/01/2014 4,000 3,980INTL LEASE FINANCE CORP 3.875 04/15/2018 1,000,000 940,000INTL LEASE FINANCE CORP 4.625 04/15/2021 1,150,000 1,058,000INTL LEASE FINANCE CORP 5.750 05/15/2016 50,000 51,382INTL LEASE FINANCE CORP 5.875 04/01/2019 500,000 505,000




Fixed Income

June 30, 2013



INTL LEASE FINANCE CORP 6.250% 05/15/2019 $1,000,000 1,027,500INTL LEASE FINANCE CORP 6.750 09/01/2016 325,000 351,000INTL LEASE FINANCE CORP 7.125 09/01/2018 2,500,000 2,762,500INTL LEASE FINANCE CORP 8.250 12/15/2020 1,325,000 1,488,969INTL LEASE FINANCE CORP 8.625 09/15/2015 2,825,000 3,093,375INTL LEASE FINANCE CORP 8.625 01/15/2022 225,000 258,750INTL LEASE FINANCE CORP 8.750 03/15/2017 1,700,000 1,893,375INTL LEASE FINANCE CORP 8.875 09/01/2017 1,500,000 1,691,250INTERNATIONAL PAPER CO. 7.950 06/15/2018 20,000,000 24,488,400INVENTIV HEALTH INC 9.000 01/15/2018 100,000 104,500INVENTIV HEALTH INC 10.750 08/15/2018 475,000 394,250INVENTIV HEALTH INC 11.000 08/15/2018 1,000,000 830,000ION GEOPHYSICAL CORP 8.125 05/15/2018 2,000,000 1,930,000IOWA STATE SPECIAL OBLIGATION 6.750 06/01/2034 10,000,000 11,430,200IPAYMENT HOLDINGS INC 15.000 11/15/2018 78,562 53,422IPAYMENT HOLDINGS INC 10.250 05/15/2018 2,650,000 2,173,000IRON MOUNTAIN INC 5.750 08/15/2024 675,000 632,813IRON MOUNTAIN INC 7.750 10/01/2019 3,225,000 3,466,875IRON MOUNTAIN INC 8.375 08/15/2021 200,000 212,750ISLE OF CAPRI CASINOS 5.875 03/15/2021 800,000 764,000ISLE OF CAPRI CASINOS 8.875 06/15/2020 1,250,000 1,306,250ISRAEL ELEC CORP LTD 5.625 06/21/2018 3,000,000 3,063,750ISRAEL STATE 2.213 11/01/2014 10,000,000 10,000,000ISRAEL STATE 3.800 09/01/2013 10,000,000 10,031,910ISTAR FINANCIAL INC 3.875 07/01/2016 200,000 192,000J CREW GROUP 8.125 03/01/2019 1,000,000 1,050,000J.B. POINDEXTER + CO 9.000 04/01/2022 175,000 183,750JACK COOPER HOLDINGS CORP 9.250 06/01/2020 700,000 700,000JAGUAR HOLDING CO 9.375 10/15/2017 2,300,000 2,403,500JAGUAR HOLDING CO 9.500 12/01/2019 1,000,000 1,105,000JAGUAR LAND ROVER AUTOMOTIVE 5.625 02/01/2023 2,425,000 2,352,250JAGUAR LAND ROVER AUTOMOTIVE 8.125 05/15/2021 125,000 137,500JAMES RIVER COAL CO 7.875 04/01/2019 375,000 166,875JAPAN FIN ORG MUNICIPAL 5.000 05/16/2017 10,000,000 11,370,400JARDEN CORP 7.500 05/01/2017 1,000,000 1,096,250JARDEN CORP 7.500 01/15/2020 250,000 267,500JBS USA FINANCE 7.250 06/01/2021 75,000 75,000JBS USA FINANCE 8.250 02/01/2020 300,000 314,250JEFFERIES FINANCE CO. 7.375 04/01/2020 4,000,000 3,880,000JEFFERIES FINANCE CO. 6.875 06/01/2020 2,855,000 2,769,350JMC STEEL GROUP 8.250 03/15/2018 1,425,000 1,392,938JOHNSON + JOHNSON 4.950 05/15/2033 45,000,000 50,508,585JOHNSON + JOHNSON 6.950 09/01/2029 65,000,000 86,114,470JPMORGAN CHASE + CO 4.400 07/22/2020 10,000,000 10,457,270JPMORGAN CHASE + CO 5.150 12/31/2049 525,000 500,063JAPAN BANK FOR INTL COOP 2.300 03/19/2018 25,000,000 23,277,489K HOVNANIAN ENTERPRISES 6.250 01/15/2016 125,000 126,875K HOVNANIAN ENTERPRISES 7.500 05/15/2016 1,474,000 1,525,590K HOVNANIAN ENTERPRISES 11.875 10/15/2015 675,000 756,000




Fixed Income

June 30, 2013



KANSAS ST TURNPIKE AUTHORITY 6.740% 09/01/2039 $7,000,000 7,920,500KB HOME 7.250 06/15/2018 1,000,000 1,060,000KB HOME 9.100 09/15/2017 275,000 308,000KELLOGG CO 3.250 05/21/2018 15,000,000 15,709,170KELLOGG CO 4.000 12/15/2020 30,000,000 31,582,860KELLOGG CO 7.450 04/01/2031 10,000,000 12,904,730KEMET CORP 10.500 05/01/2018 425,000 433,500KENAN ADVANTAGE GROUP 8.375 12/15/2018 1,150,000 1,196,000KENNEDY WILSON INC 8.750 04/01/2019 225,000 241,875KENNEDY WILSON INC 8.750 04/01/2019 125,000 134,375KENTUCKY ST MUNI POWER AGENCY 6.490 09/01/2037 18,000,000 19,121,940KIMBERLY CLARK CORP 3.625 08/01/2020 10,000,000 10,474,940KIMBERLY CLARK CORP 7.500 11/01/2018 10,000,000 12,694,940KINETICS CONCEPT 10.500 11/01/2018 2,250,000 2,418,750KINETICS CONCEPT 12.500 11/01/2019 2,550,000 2,626,500KINGDOM OF SWEDEN 1.000 02/27/2018 50,000,000 48,924,125KNOWLEDGE LEARNING CENTERS 7.750 02/01/2015 500,000 480,000KODIAK OIL + GAS CORP 8.125 12/01/2019 3,100,000 3,363,500L BRANDS INC 5.625 02/15/2022 3,497,000 3,549,455L BRANDS INC 6.625 04/01/2021 350,000 380,188L BRANDS INC 7.000 05/01/2020 125,000 138,750L BRANDS INC 8.500 06/15/2019 2,536,000 2,941,760LADDER CAPITAL FINANCE 7.375 10/01/2017 250,000 255,000LANDRY'S HOLDINGS 10.250 01/01/2018 500,000 517,500LANDRY'S HOLDINGS 9.375 05/01/2020 3,925,000 4,140,875LAREDO PETROLEUM INC 7.375 05/01/2022 500,000 525,000LAREDO PETROLEUM INC 9.500 02/15/2019 1,400,000 1,540,000LAS VEGAS NV COPS 7.800 09/01/2039 15,000,000 16,907,550LBC TANK TERMINAL HOLDINGS 6.875 05/15/2023 200,000 200,500LBG CAPITAL 7.875 11/01/2020 1,500,000 1,548,000LBG CAPITAL 8.000 12/31/2049 200,000 202,985LEAR CORP 4.750 01/15/2023 2,755,000 2,617,250LEAR CORP 7.875 03/15/2018 800,000 854,000LEAR CORP 8.125 03/15/2020 44,000 48,180LEGACY RESERVES/FINANCE 6.625 12/01/2021 2,000,000 1,925,000LEGG MASON INC 5.500 05/21/2019 1,000,000 1,030,467LENDER PROCESS SERVICES 5.750 04/15/2023 1,375,000 1,460,938LENNAR CORP 4.125 12/01/2018 1,000,000 947,500LENNAR CORP 5.000 11/15/2022 1,000,000 950,000LENNAR CORP 6.950 06/01/2018 1,300,000 1,404,000LEVEL 3 COMMUNICATIONS 8.875 06/01/2019 575,000 598,000LEVEL 3 COMMUNICATIONS 11.875 02/01/2019 1,000,000 1,132,500LEVEL 3 FINANCING INC 7.000 06/01/2020 800,000 798,000LEVEL 3 FINANCING INC 8.125 07/01/2019 1,150,000 1,207,500LEVEL 3 FINANCING INC 8.625 07/15/2020 1,325,000 1,411,125LEVEL 3 FINANCING INC 10.000 02/01/2018 600,000 646,500LEXMARK INTL INC 5.125 03/15/2020 2,000,000 2,010,710LIBBEY GLASS INC 6.875 05/15/2020 562,000 587,993LIBERTY TIRE RECYCLING 11.000 10/01/2016 2,250,000 2,250,000




Fixed Income

June 30, 2013



LIGHTSTREAM RESOURCES 8.625% 02/01/2020 $2,000,000 1,900,000LIN TELEVISION CORP 6.375 01/15/2021 200,000 202,250LIN TELEVISION CORP 8.375 04/15/2018 411,000 437,201LINN ENERGY 6.250 11/01/2019 2,000,000 1,905,000LINN ENERGY 7.750 02/01/2021 2,500,000 2,506,250LINN ENERGY 8.625 04/15/2020 1,275,000 1,338,750LIONS GATE ENTERTAINMENT 10.250 11/01/2016 600,000 642,750LIVE NATION ENTERTAINMENT 7.000 09/01/2020 1,950,000 2,049,938LIVE NATION ENTERTAINMENT 8.125 05/15/2018 1,000,000 1,060,000LKQ CORP 4.750 05/15/2023 2,295,000 2,191,725LOGAN S ROADHOUSE INC 10.750 10/15/2017 1,000,000 927,500LORILLARD TOBACCO CO 3.750 05/20/2023 25,000,000 23,067,575LOUISIANA PACIFIC CORP 7.500 06/01/2020 3,900,000 4,251,000LUKOIL INTL FINANCE 3.416 04/24/2018 1,000,000 976,250LYNX I CORP 5.375 04/15/2021 300,000 301,500LYNX II CORP 6.375 04/15/2023 200,000 201,500MACOMB MI INTERCEPTOR DRAIN DR 5.375 05/01/2035 5,000,000 5,142,750MAGNETATION FINANCE CORP. 11.000 05/15/2018 150,000 147,000MAGNUM HUNTER RESOURCES 9.750 05/15/2020 450,000 456,750MAGNUM HUNTER RESOURCES 9.750 05/15/2020 400,000 406,000MANITOBA (PROVINCE OF) 1.750 05/30/2019 10,000,000 9,777,880MANITOBA (PROVINCE OF) 2.100 09/06/2022 87,000,000 80,831,700MANITOBA (PROVINCE OF) 8.800 01/15/2020 46,000,000 62,366,800MANITOBA (PROVINCE OF) 8.875 09/15/2021 37,000,000 52,179,472MANITOBA (PROVINCE OF) 9.625 12/01/2018 60,000,000 80,811,480MANITOWOC COMPANY INC 5.875 10/15/2022 3,675,000 3,693,375MANITOWOC COMPANY INC 8.500 11/01/2020 1,575,000 1,716,750MARATHON OIL CORP 5.900 03/15/2018 10,000,000 11,492,380MARFRIG HOLDING EUROPE 9.875 07/24/2017 1,450,000 1,457,250MARINA DISTRICT FINANCE 9.500 10/15/2015 2,675,000 2,782,000MARKWEST ENERGY PARTNERS 4.500 07/15/2023 2,095,000 1,916,925MARKWEST ENERGY PARTNERS 5.500 02/15/2023 1,320,000 1,300,200MARKWEST ENERGY PARTNERS 6.250 06/15/2022 764,000 786,920MARKWEST ENERGY PARTNERS 6.750 11/01/2020 250,000 263,750MARQUETTE TRANSPORTATION CO. 10.875 01/15/2017 225,000 240,750MARYLAND STATE 4.400 03/01/2023 25,000,000 27,735,750MASONITE INTERNATIONAL CORP 8.250 04/15/2021 1,425,000 1,535,438MAXIM CRANE WORKS 12.250 04/15/2015 150,000 157,500MCCLATCHY CO 9.000 12/15/2022 2,250,000 2,362,500MCDONALD'S CORP 3.500 07/15/2020 15,000,000 15,687,270MCDONALD'S CORP 6.300 03/01/2038 20,000,000 25,304,100MCE FINANCE LTD 5.000 02/15/2021 4,525,000 4,242,188MCKESSON CORP 1.400 03/15/2018 10,000,000 9,652,090MCKESSON CORP 2.850 03/15/2023 5,000,000 4,707,555MCKESSON CORP 7.500 02/15/2019 30,000,000 37,558,620MCMORAN EXPLORATION CO 11.875 11/15/2014 1,000,000 1,040,010MDC PARTNERS INC 6.750 04/01/2020 1,250,000 1,246,875MEDIACOM BROADBAND CORP. 6.375 04/01/2023 300,000 298,500MEDIACOM CAPITAL CORP. 9.125 08/15/2019 1,575,000 1,693,125




Fixed Income

June 30, 2013



MEDIMPACT HOLDINGS INC 10.500% 02/01/2018 $1,500,000 1,665,000MEDTRONIC INC 1.375 04/01/2018 20,000,000 19,443,220MEDTRONIC INC 2.750 04/01/2023 45,000,000 42,061,005MEG ENERGY CORP 6.375 01/30/2023 200,000 194,000MEMORIAL PRODUCTION PARTNERS 7.625 05/01/2021 500,000 492,500MERCK + CO INC 1.300 05/18/2018 15,000,000 14,546,790MERCK + CO INC 6.500 12/01/2033 10,000,000 13,005,900MERCK SHARP + DOHME CORP 6.400 03/01/2028 15,000,000 18,568,875MERITAGE HOMES CORP 4.500 03/01/2018 125,000 123,750MERITAGE HOMES CORP 7.000 04/01/2022 525,000 577,500MERITOR INC 6.750 06/15/2021 500,000 477,500MET GOVT NASHVILLE & DAVIDSON 6.568 07/01/2037 11,000,000 13,678,610MET GOVT NASHVILLE & DAVIDSON 6.731 07/01/2043 28,000,000 32,521,440MET GOVT NASHVILLE & DAVIDSON 7.431 07/01/2043 5,000,000 5,996,700MET TRANSPORTATION AUTHORITY 6.687 11/15/2040 20,000,000 24,100,000METHANEX CORP 3.250 12/15/2019 1,000,000 968,081METHANEX CORP 5.250 03/01/2022 100,000 104,825METLIFE INC 10.750 08/01/2069 1,550,000 2,394,750METROPCS WIRELESS INC 6.250 04/01/2021 2,325,000 2,365,688METROPCS WIRELESS INC 6.625 11/15/2020 1,640,000 1,701,500METROPCS WIRELESS INC 6.625 04/01/2023 3,425,000 3,467,813METROPCS WIRELESS INC 7.875 09/01/2018 1,250,000 1,331,250MGM RESORTS INTL 6.625 07/15/2015 850,000 906,313MGM RESORTS INTL 6.625 12/15/2021 2,725,000 2,810,156MGM RESORTS INTL 6.750 10/01/2020 275,000 284,625MGM RESORTS INTL 6.875 04/01/2016 150,000 160,500MGM RESORTS INTL 7.500 06/01/2016 1,500,000 1,635,000MGM RESORTS INTL 7.625 01/15/2017 1,500,000 1,638,750MGM RESORTS INTL 7.750 03/15/2022 500,000 543,125MGM RESORTS INTL 8.625 02/01/2019 1,175,000 1,327,750MGM RESORTS INTL 10.000 11/01/2016 1,375,000 1,612,188MGM RESORTS INTL 11.375 03/01/2018 2,150,000 2,687,500MICHAEL FOODS GROUP INC 9.750 07/15/2018 1,500,000 1,642,500MICHAEL FOODS HOLDING 8.500 07/15/2018 3,000,000 3,090,000MICHAELS STORES INC 7.750 11/01/2018 1,500,000 1,605,000MICHIGAN ST UNIVERSITY REVENUES 7.625 09/15/2027 5,000,000 6,151,900MICHIGAN ST UNIVERSITY REVENUES 6.173 02/15/2050 20,000,000 22,720,000MIDSTATES PETRO INC/LLC 9.250 06/01/2021 3,000,000 2,820,000MIDSTATES PETRO INC/LLC 10.750 10/01/2020 3,025,000 3,040,125MIDWEST VANADIUM PTY LTD 11.500 02/15/2018 50,000 36,500MILACRON LLC/MCRON FINANCE 7.750 02/15/2021 1,275,000 1,271,813MILLAR WESTERN FOREST 8.500 04/01/2021 225,000 222,188MIRABELA NICKEL LTD 8.750 04/15/2018 125,000 98,750MISSISSIPPI STATE 5.245 11/01/2034 20,000,000 21,270,200MOBIL CORP 8.625 08/15/2021 20,000,000 28,088,520MOHEGAN TRIBAL GAMING 6.875 02/15/2015 575,000 560,625MOHEGAN TRIBAL GAMING 10.500 12/15/2016 550,000 537,625MOLYCORP INC 10.000 06/01/2020 500,000 485,000MOMENTIVE PERFORMANCE 8.875 10/15/2020 1,450,000 1,515,250




Fixed Income

June 30, 2013



MOMENTIVE PERFORMANCE 9.000% 01/15/2021 $275,000 235,813MONITRONICS INTERNATIONAL 9.125 04/01/2020 850,000 879,750MOOD MEDIA CORP 9.250 10/15/2020 2,425,000 2,218,875MPT OPERATING PARTNERSHIP 6.875 05/01/2021 175,000 185,500MARTIN MIDSTREAM PARTNERS 7.250 02/15/2021 3,045,000 3,060,225MARTIN MIDSTREAM PARTNERS 8.875 04/01/2018 1,352,000 1,422,980MTR GAMING GROUP INC 11.500 08/01/2019 575,000 600,875MUELLER WATER PRODUCTS 7.375 06/01/2017 1,000,000 1,025,000MUELLER WATER PRODUCTS 8.750 09/01/2020 1,140,000 1,242,600MULTIPLAN INC 9.875 09/01/2018 2,850,000 3,099,375MURRAY ENERGY CORP 8.625 06/15/2021 225,000 225,000MYLAN INC 7.875 07/15/2020 1,000,000 1,153,948N E OHIO REGULATORY SEWER DIST 6.038 11/15/2040 25,000,000 27,198,250N TEXAS STATE MUNICIPAL WATER 6.010 09/01/2040 7,000,000 7,801,220N TEXAS TOLLWAY AUTH REVENUE 6.718 01/01/2049 5,000,000 5,891,200NABORS INDUSTRIES INC 9.250 01/15/2019 80,000,000 99,258,160NAI ENTERTAINMENT HOLDINGS 8.250 12/15/2017 112,000 119,840NANA DEVELOPMENT CORP 9.500 03/15/2019 625,000 625,000NARA CABLE FUNDING 8.875 12/01/2018 4,375,000 4,550,000NARA CABLE FUNDING 8.875 12/01/2018 300,000 307,500NATIONAL CINEMEDIA LLC 6.000 04/15/2022 325,000 333,531NATIONAL MONEY MART CO 10.375 12/15/2016 700,000 742,000NATIONSTAR MORTGAGE CORP. 6.500 06/01/2022 1,475,000 1,438,125NATIONSTAR MORTGAGE CORP. 7.875 10/01/2020 2,000,000 2,120,000NATIONSTAR MORTGAGE CORP. 9.625 05/01/2019 450,000 504,000NATIONSTAR MORTGAGE CORP. 10.875 04/01/2015 350,000 366,625NATIONWIDE MUTUAL INSURANCE 9.375 08/15/2039 2,300,000 3,112,098NAVIOS SOUTH AMERICA LOGISTICS 9.250 04/15/2019 100,000 107,250NAVISTAR INTL CORP 8.250 11/01/2021 325,000 319,313NBCUNIVERSAL ENTERPRISE 1.974 04/15/2019 10,000,000 9,732,570NBTY INC 9.000 10/01/2018 1,865,000 2,028,188NCL CORP LTD 5.000 02/15/2018 150,000 147,000NEENAH PAPER INC 5.250 05/15/2021 250,000 243,750NEFF RENTAL/NEFF FINANCE CORP 9.625 05/15/2016 1,500,000 1,575,000NEOVIA LOGISTICS INTL. HOLDINGS 10.000 02/15/2018 775,000 767,250NES RENTALS HOLDINGS 7.875 05/01/2018 1,525,000 1,505,938NETAPP INC 3.250 12/15/2022 10,000,000 9,207,450NETFLIX INC 5.375 02/01/2021 3,000,000 2,985,000NEUSTAR INC 4.500 01/15/2023 1,900,000 1,795,500NEW ACADEMY FINANCIAL CO. 8.000 06/15/2018 1,800,000 1,845,000NEW ENTERPRISE STONE + LIME CO. 11.000 09/01/2018 300,000 214,500NEW ENTERPRISE STONE + LIME CO. 13.000 03/15/2018 327,607 358,730NEW GOLD INC 6.250 11/15/2022 900,000 861,750NEW GOLD INC 7.000 04/15/2020 1,500,000 1,515,000NJ ST TRANSPORTATION TRUST FUND 6.875 12/15/2039 4,000,000 4,442,880NJ ST TURNPIKE AUTHORITY 7.414 01/01/2040 10,000,000 13,313,100NEW LOOK BONDCO I PLC 8.375 05/14/2018 975,000 945,750NEW YORK CITY NY MUNICIPAL WATER 6.011 06/15/2042 33,000,000 38,335,110NEW YORK CITY NY MUNICIPAL WATER 6.124 06/15/2042 20,000,000 22,457,400




Fixed Income

June 30, 2013



NEW YORK CITY NY TRANSITIONAL 6.267% 08/01/2039 $20,000,000 21,940,400NEW YORK NY 6.246 06/01/2035 20,000,000 22,889,000NEW YORK ST DORM AUTHORITY 5.389 03/15/2040 30,000,000 32,149,500NEWFIELD EXPLORATION CO 6.875 02/01/2020 375,000 386,250NEWFIELD EXPLORATION CO 7.125 05/15/2018 870,000 902,625NEWMARKET CORP 4.100 12/15/2022 1,000,000 968,847NEWPAGE CORP 10.000 05/01/2049 800,000 5,000NEWS AMERICA INC 7.700 10/30/2025 10,000,000 12,203,480NEWS AMERICA INC 8.450 08/01/2034 12,000,000 15,933,264NEWS AMERICA INC 9.500 07/15/2024 10,000,000 13,366,380NGPL PIPECO LLC 9.625 06/01/2019 750,000 776,250NIELSEN FINANCE 4.500 10/01/2020 1,000,000 960,000NIELSEN FINANCE 7.750 10/15/2018 300,000 322,500NII CAPITAL CORP 7.625 04/01/2021 1,190,000 925,225NII CAPITAL CORP 8.875 12/15/2019 900,000 760,500NII CAPITAL CORP 10.000 08/15/2016 250,000 242,500NII INTERNATIONAL TELECOM 7.875 08/15/2019 2,195,000 2,079,763NIKE INC 2.250 05/01/2023 20,000,000 18,411,000NIKE INC 3.625 05/01/2043 10,000,000 8,844,860NOBLE ENERGY INC 8.250 03/01/2019 64,000,000 80,599,616NOBLE HOLDING INTL LTD 4.625 03/01/2021 26,000,000 27,030,172NOKIA CORP 5.375 05/15/2019 1,500,000 1,458,750NOKIA CORP 6.625 05/15/2039 3,850,000 3,474,625NORANDA ALUMINUM ACQUISITION 11.000 06/01/2019 300,000 285,000NORBORD INC 6.250 06/15/2015 1,000,000 1,065,000NORFOLK SOUTHERN RAILWAY 9.750 06/15/2020 21,000,000 29,100,078NORSKE SKOGINDUSTRIER 6.125 10/15/2015 1,700,000 1,173,000NORTEK INC 8.500 04/15/2021 225,000 240,750NORTEK INC 8.500 04/15/2021 400,000 424,000NORTH ATLANTIC TRADING 11.500 07/15/2016 175,000 182,000NORTH ATLANTIC TRADING 19.000 01/15/2017 108,160 115,731NC ST MUNICIPAL POWER AGENCY 6.184 01/01/2032 20,000,000 22,121,400NC ST TURNPIKE AUTHORITY 5.418 01/01/2041 22,000,000 23,967,680NC ST TURNPIKE AUTHORITY 6.700 01/01/2039 20,000,000 22,620,000NORTHERN OIL AND GAS INC 8.000 06/01/2020 1,250,000 1,262,500NORTHERN STATES PWR MINN 2.600 05/15/2023 30,000,000 28,247,520NORTHROP GRUMMAN CORP 3.500 03/15/2021 40,000,000 40,353,480NOVA CHEMICALS CORP 8.375 11/01/2016 1,000,000 1,057,500NOVA SCOTIA PROVINCE 8.250 11/15/2019 42,436,000 55,040,341NOVA SCOTIA PROVINCE 8.250 07/30/2022 5,000,000 6,796,255NOVA SCOTIA PROVINCE 9.125 05/01/2021 36,000,000 50,243,760NOVA SCOTIA PROVINCE 9.250 03/01/2020 46,000,000 63,144,108NOVARTIS CAPITAL CORP 2.400 09/21/2022 10,000,000 9,397,540NOVASEP HOLDING 8.000 12/15/2016 155,000 138,741NOVELIS INC 8.375 12/15/2017 1,200,000 1,272,000NOVELIS INC 8.750 12/15/2020 1,675,000 1,796,438NPC INTL. INC. 10.500 01/15/2020 675,000 773,719NRG ENERGY INC 6.625 03/15/2023 450,000 450,000NRG ENERGY INC 7.625 01/15/2018 2,000,000 2,140,000




Fixed Income

June 30, 2013



NRG ENERGY INC 7.625% 05/15/2019 $500,000 522,500NRG ENERGY INC 7.875 05/15/2021 3,550,000 3,789,625NRG ENERGY INC 8.250 09/01/2020 1,000,000 1,077,500NSG HOLDINGS 7.750 12/15/2025 792,000 819,720NORTHERN ARIZONIA UNIVERSITY 6.687 06/01/2039 10,000,000 10,783,300NUANCE COMMUNICATIONS 5.375 08/15/2020 3,350,000 3,274,625NUFARM AUSTRALIA LIMITED 6.375 10/15/2019 1,850,000 1,845,375NUVEEN INVESTMENTS INC 9.125 10/15/2017 625,000 626,563NXP BV/NXP FUNDING LLC 5.750 03/15/2023 200,000 201,500OASIS PETROLEUM INC 6.500 11/01/2021 1,575,000 1,614,375OASIS PETROLEUM INC 6.875 01/15/2023 300,000 309,000OEKB OEST. KONTROLLBANK 1.125 05/29/2018 65,000,000 63,090,040OFFSHORE GROUP INVESTMENTS 7.125 04/01/2023 325,000 319,313OGX AUSTRIA 8.500 06/01/2018 500,000 157,500OHIO EDISON 6.875 07/15/2036 30,000,000 36,392,340OK ST MUNICIPAL POWER AUTHORITY 6.440 01/01/2045 6,000,000 6,680,460OMNICARE INC 7.750 06/01/2020 1,000,000 1,095,000ONEX USI ACQUISITION CORP 7.750 01/15/2021 3,200,000 3,152,000ONO FINANCE 10.875 07/15/2019 2,675,000 2,782,000ONTARIO (PROVINCE OF) 1.650 09/27/2019 75,000,000 71,647,500ONTARIO (PROVINCE OF) 2.450 06/29/2022 50,000,000 47,097,200ONTARIO (PROVINCE OF) 3.000 07/16/2018 40,000,000 41,988,000ONTARIO (PROVINCE OF) 4.000 10/07/2019 20,000,000 21,757,000ONTARIO (PROVINCE OF) 4.400 04/14/2020 75,000,000 83,160,300OPPENHEIMER HOLDINGS INC 8.750 04/15/2018 3,200,000 3,368,000ORACLE CORP 2.500 10/15/2022 75,000,000 69,163,350OC CA LOCAL TRANSPORTATION 6.908 02/15/2041 25,000,000 31,833,500ORION ENGINEERED CARBONS 9.250 08/01/2019 3,525,000 3,525,000ORION ENGINEERED CARBONS 9.625 06/15/2018 898,000 972,085ORLANDO FL COMM REDEVELOP TAX 7.500 09/01/2029 7,000,000 7,831,810ORLANDO FL COMM REDEVELOP TAX 7.784 09/01/2040 2,000,000 2,185,960OSHKOSH CORP 8.250 03/01/2017 200,000 213,000OSHKOSH CORP 8.500 03/01/2020 75,000 81,094OUTERWALL INC 6.000 03/15/2019 2,000,000 1,997,500OWENS BROCKWAY 7.375 05/15/2016 875,000 975,625OWENS ILLINOIS INC 7.800 05/15/2018 225,000 257,625OXEA FINANCE 9.500 07/15/2017 2,084,000 2,235,924OXFORD FINANCE 7.250 01/15/2018 900,000 936,000PACIFIC BELL TELEPHONE 7.125 03/15/2026 10,580,000 12,945,297PACIFIC DRILLING 5.375 06/01/2020 525,000 490,875PACIFIC GAS + ELECTRIC 6.050 03/01/2034 10,000,000 11,659,250PACIFIC RUBIALES ENERGY 5.125 03/28/2023 1,000,000 945,000PAETEC HOLDING CORP 9.875 12/01/2018 1,975,000 2,182,375PALACE ENTERTAINMENT HOLDINGS 8.875 04/15/2017 215,000 221,450PANTRY INC 8.375 08/01/2020 875,000 939,531PARTY CITY HOLDINGS INC 8.875 08/01/2020 2,225,000 2,386,313PASCO COUNTY FL WATER & SEWER 6.760 10/01/2039 14,000,000 15,175,160PATRIOT MERGER CORP 9.000 07/15/2021 3,625,000 3,543,438PEABODY ENERGY CORP 6.000 11/15/2018 500,000 501,250




Fixed Income

June 30, 2013



PEABODY ENERGY CORP 6.250% 11/15/2021 $775,000 747,875PENINSULA GAMING LLC 8.375 02/15/2018 1,175,000 1,222,000PENN NATIONAL GAMING INC 8.750 08/15/2019 455,000 498,225PENN VIRGINIA CORP 8.500 05/01/2020 500,000 485,000PENN VIRGINIA RESOURCE 6.500 05/15/2021 1,325,000 1,275,313PENN VIRGINIA RESOURCE 8.250 04/15/2018 225,000 234,563PA ST ECONOMIC DEVELOPMENT 6.532 06/15/2039 15,000,000 17,350,500PA ST HIGHER EDUCATION 6.291 04/01/2040 7,000,000 7,790,930PENSKE AUTO GROUP INC 5.750 10/01/2022 350,000 357,000PEPCO HOLDINGS INC 7.450 08/15/2032 16,400,000 20,181,036PEPSICO INC 0.700 02/26/2016 30,000,000 29,769,840PEPSICO INC 3.000 08/25/2021 5,000,000 4,918,720PERRIGO COMPANY 2.950 05/15/2023 10,000,000 9,244,730PERRY ELLIS INTL INC 7.875 04/01/2019 175,000 184,188PERSTORP HOLDING 8.750 05/15/2017 1,750,000 1,750,000PERSTORP HOLDING 11.000 08/15/2017 1,750,000 1,732,500PETCO ANIMAL SUPPLIES INC 9.250 12/01/2018 1,750,000 1,885,625PETCO ANIMAL SUPPLIES INC 8.500 10/15/2017 2,000,000 2,040,000PETROLEUM GEO SERVICES 7.375 12/15/2018 1,100,000 1,196,250PETROLOGISTICS LP/FIN 6.250 04/01/2020 3,900,000 3,822,000PHARMACIA CORP 6.600 12/01/2028 50,000,000 62,805,300PHH CORP 9.250 03/01/2016 100,000 111,250PHIBRO ANIMAL HEALTH CORP 9.250 07/01/2018 1,125,000 1,209,375PHYSIO CONTROL INTERNATIONAL 9.875 01/15/2019 1,150,000 1,265,000PHYSIOTHERAPY ASSOCIATES 11.875 05/01/2019 175,000 96,250PILGRIM'S PRIDE CORP 7.875 12/15/2018 1,250,000 1,331,250PINNACLE ENTERTAINMENT 7.750 04/01/2022 150,000 156,750PINNACLE ENTERTAINMENT 8.625 08/01/2017 400,000 417,000PINNACLE ENTERTAINMENT 8.750 05/15/2020 2,100,000 2,252,250PINNACLE FOODS FINANCE 4.875 05/01/2021 375,000 358,125PITTSBURGH GLASS WORKS 8.500 04/15/2016 500,000 495,000PLAINS EXPLORE + PRODUCTION CO. 6.125 06/15/2019 500,000 530,162PLAINS EXPLORE + PRODUCTION CO. 6.500 11/15/2020 1,000,000 1,060,205PLAINS EXPLORE + PRODUCTION CO. 6.625 05/01/2021 1,690,000 1,789,132PLAINS EXPLORE + PRODUCTION CO. 6.750 02/01/2022 3,150,000 3,338,294PLAINS EXPLORE + PRODUCTION CO. 6.875 02/15/2023 1,200,000 1,283,882PLAINS EXPLORE + PRODUCTION CO. 7.625 04/01/2020 575,000 635,514PLAINS EXPLORE + PRODUCTION CO. 8.625 10/15/2019 550,000 605,303PLY GEM INDUSTRIES 8.250 02/15/2018 1,250,000 1,331,250PLY GEM INDUSTRIES 9.375 04/15/2017 1,077,000 1,138,928POLICE & FIREMAN MORTGAGE PROGRAM Various Various 843,788,176 835,483,242POLYMER GROUP INC 7.750 02/01/2019 500,000 520,000POLYONE CORP 5.250 03/15/2023 475,000 467,875POLYONE CORP 7.375 09/15/2020 1,175,000 1,269,000POLYPORE INTERNATIONAL 7.500 11/15/2017 500,000 521,250PORT IMPERIAL FERRY CORP 7.460 04/30/2049 1,177,843 1,177,843POST HOLDINGS INC 7.375 02/15/2022 600,000 642,000PPL ENERGY SUPPLY LLC 5.700 10/15/2035 15,000,000 16,112,160PPL ENERGY SUPPLY LLC 6.000 12/15/2036 55,200,000 56,339,162




Fixed Income

June 30, 2013



PPL ENERGY SUPPLY LLC 6.200% 05/15/2016 $40,000,000 44,485,920PPL ENERGY SUPPLY LLC 6.500 05/01/2018 50,000,000 57,923,600PQ CORP 8.750 05/01/2018 2,250,000 2,306,250PRESTIGE BRANDS INC 8.125 02/01/2020 3,715,000 4,058,638PRESTIGE BRANDS INC 8.250 04/01/2018 3,055,000 3,253,575PRINCETON OH CITY SCHOOL DISTRICT 6.390 12/01/2047 13,000,000 13,562,120PRIVATE EXPORT FUNDING 1.450 08/15/2019 20,000,000 19,087,640PRIVATE EXPORT FUNDING 2.050 11/15/2022 35,000,000 32,412,380PRIVATE EXPORT FUNDING 2.450 07/15/2024 10,000,000 9,295,260PROCTER + GAMBLE CO/THE 5.500 02/01/2034 25,000,000 28,893,025PROGRESS ENERGY INC 7.050 03/15/2019 25,000,000 30,292,375PROGRESS ENERGY INC 7.750 03/01/2031 56,235,000 72,767,865PROQUEST NOTES COMPANY 9.000 10/15/2018 625,000 625,000PROSPECT CAPITAL CORP 5.875 03/15/2023 5,000,000 4,743,355PROSPECT MEDICAL HOLDING 8.375 05/01/2019 2,000,000 2,090,000PROV OF NEW BRUNSWICK 2.750 06/15/2018 63,000,000 65,519,370PROV OF NEW BRUNSWICK 8.750 05/01/2022 43,000,000 59,782,126PROVIDENT FUNDING 6.750 06/15/2021 3,425,000 3,416,438PROVINCE OF NEWFOUNDLAND 7.320 10/13/2023 12,000,000 15,651,048PROVINCE OF NEWFOUNDLAND 9.000 10/15/2021 32,000,000 44,535,008PROVINCE OF QUEBEC 2.625 02/13/2023 25,000,000 23,785,575PROVINCE OF QUEBEC 7.125 02/09/2024 15,000,000 19,503,735PROVINCE OF QUEBEC 7.500 07/15/2023 22,000,000 29,262,200PROVINCE OF QUEBEC 7.500 09/15/2029 99,000,000 135,990,855PROVINCE OF SASKATCHEWAN 8.500 07/15/2022 45,000,000 62,685,765PROVINCE OF SASKATCHEWAN 9.125 02/15/2021 19,000,000 26,355,109PROVINCE OF SASKATCHEWAN 9.375 12/15/2020 30,000,000 41,881,440PRUDENTIAL FINANCIAL INC 5.875 09/15/2042 1,000,000 1,002,500PUBLIC SERVICE ELECTRIC AND GAS 2.375 05/15/2023 55,000,000 50,927,910PUBLIC SERVICE OKLAHOMA 5.150 12/01/2019 12,000,000 13,596,984PUGET ENERGY INC 5.625 07/15/2022 100,000 106,020PUGET ENERGY INC 6.000 09/01/2021 275,000 295,543PUGET ENERGY INC 6.500 12/15/2020 2,000,000 2,240,010PVH CORP 4.500 12/15/2022 5,690,000 5,462,400PVH CORP 7.375 05/15/2020 275,000 298,375QR ENERGY 9.250 08/01/2020 900,000 924,750QUEBECOR MEDIA 7.750 03/15/2016 570,000 579,263QUEBECOR MEDIA 5.750 01/15/2023 125,000 121,875QUICKSILVER RESOURCES INC 9.125 08/15/2019 325,000 276,250QVC INC 4.375 03/15/2023 1,265,000 1,179,955QVC INC 5.125 07/02/2022 50,000 50,527QVC INC 7.375 10/15/2020 75,000 81,813QVC INC 7.500 10/01/2019 2,522,000 2,741,946RADIATION THERAPY SERVICE 8.875 01/15/2017 50,000 47,000RADIATION THERAPY SERVICE 9.875 04/15/2017 1,000,000 610,000RADIO SYSTEMS CORP 8.375 11/01/2019 225,000 239,625RADIOSHACK CORP 6.750 05/15/2019 450,000 324,000RAIN CII CARBON LLC/CII 8.000 12/01/2018 1,450,000 1,486,250RAIN CII CARBON LLC/CII 8.250 01/15/2021 1,200,000 1,200,000




Fixed Income

June 30, 2013



RANGE RESOURCES CORP 5.000% 08/15/2022 $1,000,000 977,500RANGE RESOURCES CORP 5.000 03/15/2023 3,625,000 3,543,438RANGE RESOURCES CORP 6.750 08/01/2020 500,000 536,250RANGE RESOURCES CORP 8.000 05/15/2019 450,000 479,250RAYTHEON COMPANY 3.125 10/15/2020 20,000,000 20,125,080RAYTHEON COMPANY 4.400 02/15/2020 10,000,000 10,879,180RBS GLOBAL + REXNORD CORP 8.500 05/01/2018 4,250,000 4,515,625RED OAK POWER LLC 8.540 11/30/2019 83,180 87,339REGAL CINEMAS CORP 8.625 07/15/2019 800,000 854,000REGAL ENTERTAINMENT GROUP 5.750 02/01/2025 75,000 71,250REGAL ENTERTAINMENT GROUP 5.750 06/15/2023 250,000 241,875REGAL ENTERTAINMENT GROUP 9.125 08/15/2018 493,000 542,300REGENCY ENERGY PARTNERS 5.500 04/15/2023 1,690,000 1,664,650REGENCY ENERGY PARTNERS 6.500 07/15/2021 1,375,000 1,436,875REGENCY ENERGY PARTNERS 6.875 12/01/2018 100,000 105,250REGIONS FINANCIAL CORP 7.375 12/10/2037 1,000,000 1,120,000REGIONAL TRANSPORTATION DISTRICT 7.672 06/01/2040 30,000,000 35,169,000RELIANCE INTERMEDIATE 9.500 12/15/2019 4,240,000 4,579,200RENT A CENTER INC 4.750 05/01/2021 1,275,000 1,208,063RENT A CENTER INC 6.625 11/15/2020 1,745,000 1,827,888RENTECH NITROGEN PARTNERS 6.500 04/15/2021 3,550,000 3,514,500RES CARE INC 10.750 01/15/2019 1,975,000 2,212,000RESOLUTE ENERGY CORP 8.500 05/01/2020 3,295,000 3,352,663RESOLUTE FOREST PRODUCTS 5.875 05/15/2023 1,125,000 1,004,063RESOLUTION FUNDING 8.625 01/15/2021 5,000,000 7,079,310REVLON CONSUMER PRODUCTS 5.750 02/15/2021 2,225,000 2,169,375REX ENERGY CORP 8.875 12/01/2020 1,500,000 1,545,000REXEL SA 5.250 06/15/2020 500,000 498,750REXEL SA 6.125 12/15/2019 175,000 178,500REYNOLDS GROUP 5.750 10/15/2020 2,050,000 2,065,375REYNOLDS GROUP 6.875 02/15/2021 350,000 367,500REYNOLDS GROUP 7.125 04/15/2019 1,250,000 1,320,313REYNOLDS GROUP 7.875 08/15/2019 2,100,000 2,289,000REYNOLDS GROUP 8.250 02/15/2021 3,050,000 3,019,500REYNOLDS GROUP 8.500 05/15/2018 1,000,000 1,030,000REYNOLDS GROUP 9.000 04/15/2019 2,050,000 2,116,625REYNOLDS GROUP 9.875 08/15/2019 1,850,000 1,979,500RFCSP STRIP PRINCIPAL 0.000 10/15/2019 100,000,000 87,760,900RFCSP STRIP PRINCIPAL 0.000 07/15/2020 75,000,000 64,086,450RHP HOTEL PROPERTIES 5.000 04/15/2021 1,200,000 1,164,000RITE AID CORP 6.750 06/15/2021 100,000 98,250RITE AID CORP 6.875 12/15/2028 1,000,000 910,000RIVERS PITTSBURGH 9.500 06/15/2019 693,000 748,440ROC FINANCE 12.125 09/01/2018 3,275,000 3,725,313ROCKIES EXPRESS PIPELINE 6.000 01/15/2019 75,000 67,125ROCKWOOD SPECIALTIES GROUP 4.625 10/15/2020 3,255,000 3,271,275ROHM + HAAS COMPANY 6.000 09/15/2017 15,000,000 17,104,215ROHM + HAAS COMPANY 7.850 07/15/2029 67,690,000 88,110,652ROOFING SUPPLY 10.000 06/01/2020 1,500,000 1,623,750




Fixed Income

June 30, 2013



ROSETTA RESOURCES INC 9.500% 04/15/2018 $3,590,000 3,877,200ROYAL BANK OF SCOTLAND GROUP 6.100 06/10/2023 4,000,000 3,794,852ROYAL BANK OF SCOTLAND GROUP 6.990 12/31/2049 825,000 771,375ROYAL BANK OF SCOTLAND GROUP 7.640 12/31/2049 100,000 89,500RPM INTERNATIONAL INC 3.450 11/15/2022 15,000,000 13,993,830RR DONNELLEY + SONS CO 7.875 03/15/2021 225,000 229,500RR DONNELLEY + SONS CO 8.250 03/15/2019 25,000 26,250RSI HOME PRODUCTS INC 6.875 03/01/2018 2,075,000 2,121,688RURAL METRO CORP 10.125 07/15/2019 1,050,000 892,500RUTGERS NJ STATE UNIVERSITY 3.928 05/01/2028 10,000,000 9,587,900RYERSON INC 9.000 10/15/2017 500,000 507,500RYLAND GROUP 5.375 10/01/2022 125,000 120,625RYLAND GROUP 6.625 05/01/2020 250,000 262,500SABINE OIL + GAS 9.750 02/15/2017 1,750,000 1,785,000SABINE PASS LIQUEFACTION 5.625 02/01/2021 3,985,000 3,865,450SABINE PASS LIQUEFACTION 5.625 04/15/2023 1,325,000 1,252,125SABINE PASS LIQUEFACTION 6.500 11/01/2020 3,270,000 3,302,700SABINE PASS LIQUEFACTION 7.500 11/30/2016 1,135,000 1,221,544SABINE PASS LIQUEFACTION 7.500 11/30/2016 75,000 76,969SABLE INTL FINANCE LTD 8.750 02/01/2020 200,000 220,000SABRA HEALTH 8.125 11/01/2018 81,000 86,873SABRE INC 8.500 05/15/2019 1,175,000 1,251,375SAFWAY GROUP HOLDING 7.000 05/15/2018 1,100,000 1,078,000SALLY HOLDINGS 5.750 06/01/2022 2,330,000 2,364,950SALLY HOLDINGS 6.875 11/15/2019 895,000 959,888SAMSON INVESTMENT COMPANY 10.000 02/15/2020 4,765,000 5,021,119SAN ANTONIO TX INDEP SCHOOL 4.006 08/15/2028 5,000,000 5,073,200SANCHEZ ENERGY CORP 7.750 06/15/2021 1,950,000 1,901,250SANDRIDGE ENERGY INC 7.500 03/15/2021 1,775,000 1,695,125SANDRIDGE ENERGY INC 7.500 02/15/2023 1,500,000 1,425,000SANDRIDGE ENERGY INC 8.125 10/15/2022 1,620,000 1,603,800SANDRIDGE ENERGY INC 8.750 01/15/2020 200,000 204,000SANOFI 1.250 04/10/2018 10,000,000 9,685,870SAPPI PAPIER HOLDING 6.625 04/15/2021 200,000 194,000SBA COMMUNICATIONS CORP 5.625 10/01/2019 1,325,000 1,311,750SBA TELECOMMUNICATIONS 5.750 07/15/2020 200,000 200,500SCANA CORPORATION 4.125 02/01/2022 8,000,000 7,873,040SCHAEFFLER FINANCE 4.750 05/15/2021 3,945,000 3,747,750SCHAEFFLER FINANCE 7.750 02/15/2017 1,650,000 1,823,250SCHAEFFLER FINANCE 8.500 02/15/2019 1,850,000 2,062,750SCIENTIFIC GAMES CORP 8.125 09/15/2018 300,000 321,000SCOTTS MIRACLE GROWTH CO. 7.250 01/15/2018 250,000 262,500SEAGATE HDD CAYMAN 4.750 06/01/2023 5,000,000 4,662,500SEAGATE HDD CAYMAN 6.875 05/01/2020 650,000 689,000SEAGATE HDD CAYMAN 7.750 12/15/2018 1,500,000 1,631,250SEALED AIR CORP 5.250 04/01/2023 2,225,000 2,163,813SEALED AIR CORP 6.500 12/01/2020 500,000 527,500SEALED AIR CORP 8.125 09/15/2019 675,000 752,625SEALED AIR CORP 8.375 09/15/2021 1,875,000 2,118,750




Fixed Income

June 30, 2013



SEITEL INC 9.500% 04/15/2019 $1,500,000 1,503,750SELECT MEDICAL CORP 6.375 06/01/2021 2,500,000 2,375,000SEMINOLE HARD ROCK ENTERTAINMENT 5.875 05/15/2021 325,000 315,250SEQUA CORP 7.000 12/15/2017 1,000,000 990,000SERTA SIMMONS HOLDINGS 8.125 10/01/2020 3,275,000 3,332,313SERVICE CORP INTL 4.500 11/15/2020 175,000 168,000SERVICE CORP INTL 5.375 01/15/2022 1,350,000 1,346,625SERVICE CORP INTL 7.000 06/15/2017 200,000 220,500SERVICE CORP INTL 7.000 05/15/2019 125,000 132,188SERVICE CORP INTL 7.500 04/01/2027 2,525,000 2,758,563SERVICE CORP INTL 8.000 11/15/2021 425,000 486,625SERVICEMASTER COMPANY 7.000 08/15/2020 3,750,000 3,557,813SERVICEMASTER COMPANY 8.000 02/15/2020 1,575,000 1,571,063SESI LLC 6.375 05/01/2019 200,000 206,500SESI LLC 7.125 12/15/2021 225,000 243,000SEVEN GENERATIONS ENERGY 8.250 05/15/2020 1,500,000 1,492,500SHALE HOLDINGS 8.750 11/15/2019 1,100,000 1,122,000SHEA HOMES 8.625 05/15/2019 150,000 160,125SHEARERS FOODS 9.000 11/01/2019 2,250,000 2,379,375SHELF DRILL HOLDINGS 8.625 11/01/2018 1,025,000 1,066,000SHERIDAN GROUP INC/THE 12.500 04/15/2014 121,578 120,362SIDEWINDER DRILLING INC 9.750 11/15/2019 1,225,000 1,240,313SILVER II BORROWERS 7.750 12/15/2020 2,875,000 2,889,375SIMMONS FOODS INC 10.500 11/01/2017 2,000,000 2,105,000SINCLAIR TELEVISION GROUP 5.375 04/01/2021 1,850,000 1,776,000SINCLAIR TELEVISION GROUP 9.250 11/01/2017 375,000 397,500SIRIUS XM RADIO INC 4.250 05/15/2020 275,000 258,500SIRIUS XM RADIO INC 4.625 05/15/2023 350,000 323,750SIRIUS XM RADIO INC 5.250 08/15/2022 375,000 363,750SIWF MERGER 6.250 06/01/2021 1,240,000 1,215,200SIX FLAGS ENTERTAINMENT 5.250 01/15/2021 500,000 482,500SKY GROWTH ACQUISITION 7.375 10/15/2020 3,700,000 3,792,500SLM CORP 3.875 09/10/2015 50,000 50,503SLM CORP 5.500 01/25/2023 1,325,000 1,261,670SLM CORP 6.000 01/25/2017 1,075,000 1,123,375SLM CORP 7.250 01/25/2022 500,000 525,000SLM CORP 8.000 03/25/2020 3,075,000 3,328,688SM ENERGY CO 5.000 01/15/2024 2,100,000 2,005,500SM ENERGY CO 6.500 11/15/2021 125,000 131,250SMALL BUSINESS ADMINISTRATION 2.877 09/10/2021 39,130,100 39,874,840SMALL BUSINESS ADMINISTRATION 3.215 09/10/2020 9,128,574 9,309,482SMALL BUSINESS ADMINISTRATION 4.620 03/10/2019 7,688,441 8,222,620SMALL BUSINESS ADMINISTRATION 4.727 02/10/2019 3,602,103 3,839,391SMALL BUSINESS ADMINISTRATION 5.376 03/10/2017 3,287,209 3,567,103SMALL BUSINESS ADMINISTRATION 5.471 03/10/2018 12,508,375 13,623,068SMALL BUSINESS ADMINISTRATION 5.528 09/10/2017 14,643,719 15,712,306SMALL BUSINESS ADMINISTRATION 5.725 09/10/2018 10,084,132 10,867,974SMALL BUSINESS ADMINISTRATION 5.902 02/10/2018 7,575,576 8,323,662SMALL BUSINESS ADMINISTRATION 5.944 08/10/2018 4,699,232 5,202,779




Fixed Income

June 30, 2013



SMITHFIELD FOODS INC 6.625% 08/15/2022 $1,000,000 1,075,000SMITHFIELD FOODS INC 7.750 07/01/2017 1,000,000 1,102,500SMURFIT KAPPA TREASURY 7.500 11/20/2025 2,795,000 3,046,550SOFTBANK CORP 4.500 04/15/2020 4,775,000 4,601,906SONIC AUTOMOTIVE INC 5.000 05/15/2023 625,000 606,250SONIC AUTOMOTIVE INC 7.000 07/15/2022 3,055,000 3,329,950SOPHIA FINANCE 9.750 01/15/2019 2,625,000 2,808,750SORENSON COMMUNICATIONS 10.500 02/01/2015 175,000 138,250SOUTH BROWARD FL HOSPITAL DISTRICT 7.278 05/01/2044 15,000,000 16,652,550SC ST PUBLIC SERVICE AUTHORITY 4.551 12/01/2030 24,000,000 23,731,440SC ST PUBLIC SERVICE AUTHORITY 6.454 01/01/2050 10,000,000 11,536,000SOUTHERN GRAPHICS INC 8.375 10/15/2020 2,450,000 2,523,500SPECIALTY BRANDS ESCROW CORP. 6.375 11/15/2020 2,050,000 2,147,375SPECIALTY BRANDS ESCROW CORP. 6.625 11/15/2022 1,450,000 1,518,875SPECTRA ENERGY CAPITAL 6.750 02/15/2032 39,000,000 43,719,897SPECTRA ENERGY CAPITAL 7.500 09/15/2038 25,000,000 31,223,425SPECTRUM BRANDS INC 6.750 03/15/2020 1,050,000 1,106,438SPECTRUM BRANDS INC 9.500 06/15/2018 3,295,000 3,608,025SPEEDWAY MOTORSPORTS INC 6.750 02/01/2019 75,000 78,375SPENCER SPIRIT HOLDINGS 9.000 05/01/2018 1,050,000 1,023,750SPIRIT AEROSYSTEMS INC 6.750 12/15/2020 50,000 52,000SPL LOGISTICS ESCROW LLC 8.875 08/01/2020 825,000 858,000SPRING BRANCH TX INDEP SCHOOL 6.038 02/01/2039 13,000,000 13,983,710SPRINGLEAF FINANCE CORP 6.000 06/01/2020 3,375,000 3,020,625SPRINGLEAF FINANCE CORP 6.900 12/15/2017 3,550,000 3,483,438SPRINT CAPITAL CORP 6.875 11/15/2028 500,000 480,000SPRINT CAPITAL CORP 6.900 05/01/2019 4,250,000 4,420,000SPRINT CAPITAL CORP 8.750 03/15/2032 8,400,000 9,240,000SPRINT NEXTEL CORP 6.000 12/01/2016 500,000 527,500SPRINT NEXTEL CORP 6.000 11/15/2022 4,675,000 4,581,500SPRINT NEXTEL CORP 7.000 03/01/2020 1,000,000 1,080,000SPRINT NEXTEL CORP 7.000 08/15/2020 1,610,000 1,690,500SPRINT NEXTEL CORP 8.375 08/15/2017 3,445,000 3,867,013SPRINT NEXTEL CORP 9.125 03/01/2017 250,000 287,500SPRINT NEXTEL CORP 11.500 11/15/2021 1,745,000 2,320,850SQUARETWO FINANCIAL CORP 11.625 04/01/2017 1,225,000 1,255,625STAR GAS PARTNER/FINANCE 8.875 12/01/2017 700,000 721,000STATE AUTO FINANCIAL CORP 6.250 11/15/2013 1,000,000 1,001,798STATE OF ISRAEL 3.150 06/30/2023 15,000,000 14,055,000STATE OF ISRAEL 5.125 03/26/2019 25,000,000 28,100,000STATE PUB SCHOOL BUILDING AUTH OF PA 5.000 09/15/2027 5,000,000 5,302,500STATION CASINOS LLC 7.500 03/01/2021 75,000 75,750STEEL DYNAMICS INC 6.125 08/15/2019 950,000 1,004,625STEEL DYNAMICS INC 6.375 08/15/2022 250,000 263,750STEEL DYNAMICS INC 7.625 03/15/2020 250,000 266,250STEELCASE INC 6.375 02/15/2021 1,000,000 1,080,144STHI HOLDING CORP 8.000 03/15/2018 1,500,000 1,620,000STONE ENERGY CORP 8.625 02/01/2017 4,275,000 4,456,688STONERIDGE INC 9.500 10/15/2017 275,000 294,250




Fixed Income

June 30, 2013



STRATUS TECHNOLOGIES 12.000% 03/29/2015 $48 48,240STREAM GLOBAL SERVICES 11.250 10/01/2014 700,000 707,000UNITED STATES TREASURY STRIPS 0.000 08/15/2025 165,000,000 114,690,015STUDIO CITY FINANCE LTD 8.500 12/01/2020 500,000 535,000SUBURBAN PROPANE PARTNERS 7.375 03/15/2020 100,000 104,000SUBURBAN PROPANE PARTNERS 7.375 08/01/2021 154,000 160,160SUBURBAN PROPANE PARTNERS 7.500 10/01/2018 147,000 154,350SUGAR HOUSE GAMING PROPERTIES 6.375 06/01/2021 1,300,000 1,257,750SUMMIT MID HOLDINGS 7.500 07/01/2021 575,000 583,625SUN PRODUCTS CORP 7.750 03/15/2021 2,905,000 2,883,213SUNCOKE ENERGY PARTNERS 7.375 02/01/2020 150,000 153,000SUNEDISON INC 7.750 04/01/2019 825,000 781,688SUNGARD DATA SYSTEMS INC 6.625 11/01/2019 1,720,000 1,728,600SUNGARD DATA SYSTEMS INC 7.375 11/15/2018 1,500,000 1,582,500SUNGARD DATA SYSTEMS INC 7.625 11/15/2020 1,500,000 1,590,000SUPERVALU INC 6.750 06/01/2021 300,000 279,000SWIFT ENERGY CO 7.875 03/01/2022 2,000,000 1,990,000SWIFT SERVICES HOLDINGS 10.000 11/15/2018 2,675,000 2,955,875SYMBION INC 8.000 06/15/2016 75,000 78,000SYNCREON GLOBAL 9.500 05/01/2018 150,000 159,000SYNIVERSE HOLDINGS INC 9.125 01/15/2019 1,000,000 1,067,500TALOS PRODUCTION 9.750 02/15/2018 500,000 475,000TAMINCO GLOBAL CHEMICAL 9.750 03/31/2020 1,350,000 1,503,563TARGA RESOURCES PARTNERS 4.250 11/15/2023 2,860,000 2,552,550TARGA RESOURCES PARTNERS 5.250 05/01/2023 2,205,000 2,111,288TARGA RESOURCES PARTNERS 6.875 02/01/2021 225,000 239,063TAYLOR MORRISON COMMUNICATIONS 5.250 04/15/2021 860,000 817,000TAYLOR MORRISON COMMUNICATIONS 7.750 04/15/2020 1,668,000 1,797,270TAYLOR MORRISON COMMUNICATIONS 7.750 04/15/2020 54,000 58,185TCI COMMUNICATIONS INC 8.750 08/01/2015 10,000,000 11,564,320TEEKAY CORP 8.500 01/15/2020 325,000 353,438TEKNI PLEX INC 9.750 06/01/2019 900,000 956,250TELEFLEX INC 6.875 06/01/2019 225,000 237,375TELUS CORP 3.350 04/01/2024 22,500,000 19,774,705TENET HEALTHCARE CORP 4.375 10/01/2021 1,000,000 917,500TENET HEALTHCARE CORP 4.500 04/01/2021 1,775,000 1,655,188TENET HEALTHCARE CORP 4.750 06/01/2020 1,000,000 963,750TENET HEALTHCARE CORP 6.750 02/01/2020 1,000,000 970,000TENET HEALTHCARE CORP 8.000 08/01/2020 750,000 775,313TENN VALLEY AUTHORITY 1.875 08/15/2022 40,000,000 36,650,000TENN VALLEY AUTHORITY 7.125 05/01/2030 10,000,000 13,787,460TENNECO INC 7.750 08/15/2018 115,000 123,050TENNESSEE GAS PIPELINE 8.000 02/01/2016 105,000 121,629TEREX CORP 6.000 05/15/2021 200,000 199,500TERVITA CORP 8.000 11/15/2018 1,575,000 1,582,875TESORO CORP 4.250 10/01/2017 1,075,000 1,101,875TESORO CORP 9.750 06/01/2019 1,000,000 1,105,000TESORO LOGISTICS 5.875 10/01/2020 75,000 73,875TEVA PHARMACEUTICAL FINANCE 3.650 11/10/2021 10,000,000 10,000,920




Fixed Income

June 30, 2013



TEXAS COMPETITIVE 10.250% 11/01/2015 $1,690,000 156,325TEXAS EASTERN TRANSMISSIONS 7.000 07/15/2032 32,600,000 40,100,575TEXAS INSTRUMENTS INC 2.250 05/01/2023 11,000,000 9,883,302TEXAS STATE 5.517 04/01/2039 10,000,000 11,329,000THERMADYNE HOLDINGS CORP 9.000 12/15/2017 350,000 377,125THOMPSON CREEK METALS CO 7.375 06/01/2018 200,000 165,000THOMPSON CREEK METALS CO 12.500 05/01/2019 925,000 888,000TIME WARNER COS INC 7.570 02/01/2024 10,000,000 12,485,810TITAN INTERNATIONAL INC 7.875 10/01/2017 150,000 157,500TOLL BROS FINANCE CORP 4.375 04/15/2023 1,100,000 1,023,000TOLL BROS FINANCE CORP 5.875 02/15/2022 1,375,000 1,436,875TOLL BROS FINANCE CORP 6.750 11/01/2019 100,000 113,000TOLL BROS FINANCE CORP 8.910 10/15/2017 100,000 118,500TOMKINS INC 9.000 10/01/2018 604,000 658,360TOPS HOLDINGS CORP 8.875 12/15/2017 325,000 351,813TOPS HOLDINGS CORP 8.750 06/15/2018 850,000 835,125TOSCO CORP 8.125 02/15/2030 45,000,000 62,332,875TOWNSQUARE RADIO 9.000 04/01/2019 2,750,000 2,928,750TOYS R US INC. 7.375 09/01/2016 250,000 249,375TOYS R US INC. 10.375 08/15/2017 525,000 525,000TOYS R US INC. 10.750 07/15/2017 600,000 633,000TPC GROUP INC 8.750 12/15/2020 2,025,000 2,070,563TRAC INTERMODAL CORP 11.000 08/15/2019 275,000 302,500TRANS CANADA PIPELINES 7.250 08/15/2038 30,000,000 39,038,700TRANS CANADA PIPELINES 9.875 01/01/2021 38,000,000 52,878,064TRANS UNION 11.375 06/15/2018 1,000,000 1,107,500TRANSDIGM INC 5.500 10/15/2020 200,000 189,000TRANSDIGM INC 7.500 07/15/2021 2,350,000 2,402,875TRANSDIGM INC 7.750 12/15/2018 3,500,000 3,683,750TRANSOCEAN 7.500 04/15/2031 60,000,000 66,688,020TRANSUNION HOLDING CO 8.125 06/15/2018 3,250,000 3,440,938TRANSUNION HOLDING CO 9.625 06/15/2018 975,000 1,040,813TRAVELPORT LLC 11.875 09/01/2016 250,000 232,500TRAVELPORT LLC 13.875 03/01/2016 1,440,000 1,472,400TREEHOUSE FOODS INC 7.750 03/01/2018 250,000 264,688TRINIDAD DRILLING LTD 7.875 01/15/2019 175,000 183,750TRINSEO MATERIALS OPERATING 8.750 02/01/2019 3,100,000 2,960,500TRIUMPH GROUP INC 4.875 04/01/2021 1,250,000 1,243,750TRIUMPH GROUP INC 4.875 04/01/2021 450,000 447,750TRIUMPH GROUP INC 8.000 11/15/2017 125,000 131,563TRIUMPH GROUP INC 8.625 07/15/2018 400,000 432,000TRUVEN HEALTH ANALYTICS 10.625 06/01/2020 3,500,000 3,850,000TRW AUTOMOTIVE INC 8.875 12/01/2017 1,000,000 1,062,500TSY 1 7/8 2022 I/L GILT 1.875 11/22/2022 84,913,500 157,533,896UNITED STATES INFLATIONARY BONDS 0.125 04/15/2017 230,357,250 236,350,224UNITED STATES INFLATIONARY BONDS 0.125 01/15/2023 478,534,000 463,990,873UNITED STATES INFLATIONARY BONDS 0.125 04/15/2018 502,985,000 515,952,456UNITED STATES INFLATIONARY BONDS 1.125 01/15/2021 217,919,100 233,054,235UNITED STATES INFLATIONARY BONDS 1.250 04/15/2014 54,939,000 55,690,126




Fixed Income

June 30, 2013



UNITED STATES INFLATIONARY BONDS 1.750% 01/15/2028 $55,499,500 62,181,140UNITED STATES INFLATIONARY BONDS 2.375 01/15/2025 30,841,250 36,739,639TUCSON AZ COPS 6.750 07/01/2030 5,000,000 5,745,650TW TELECOM HOLDINGS INC 8.000 03/01/2018 150,000 159,000UCI INTERNATIONAL INC 8.625 02/15/2019 2,325,000 2,371,500UNIFRAX I LLC/UNIFRAX HO 7.500 02/15/2019 1,375,000 1,402,500UNION PACIFIC CORP 6.625 02/01/2029 14,000,000 17,544,898UNISYS CORP 6.250 08/15/2017 200,000 212,000UNIT CORP 6.625 05/15/2021 225,000 229,500UNITED AIRLINES INC 6.750 09/15/2015 200,000 205,500UNITED COMMUNITIES LLC 5.611 09/15/2051 19,928,467 19,260,863UNITED CONTINENTAL HOLDINGS 6.375 06/01/2018 175,000 171,938UNITED PARCEL SERVICE 5.125 04/01/2019 25,000,000 28,746,325UNITED REFINING 10.500 02/28/2018 100,000 110,250UNITED RENTALS NORTH AMERICA 5.750 07/15/2018 250,000 262,500UNITED RENTALS NORTH AMERICA 6.125 06/15/2023 200,000 199,000UNITED RENTALS NORTH AMERICA 7.375 05/15/2020 2,850,000 3,042,375UNITED RENTALS NORTH AMERICA 7.625 04/15/2022 4,820,000 5,217,650UNITED RENTALS NORTH AMERICA 8.250 02/01/2021 1,550,000 1,697,250UNITED RENTALS NORTH AMERICA 8.375 09/15/2020 1,000,000 1,082,500UNITED RENTALS NORTH AMERICA 10.250 11/15/2019 1,125,000 1,260,000UNITED TECHNOLOGIES CORP 7.500 09/15/2029 22,000,000 30,223,974UNITED TECHNOLOGIES CORP 8.875 11/15/2019 20,000,000 26,635,680UNITEDHEALTH GROUP INC 2.875 03/15/2023 10,000,000 9,396,130UNITYMEDIA HESSEN 5.500 01/15/2023 2,650,000 2,504,250UNITYMEDIA HESSEN 7.500 03/15/2019 1,500,000 1,578,750UNIVERSITY OF CINCINNATI OH RECEIPTS 6.484 06/01/2039 8,000,000 8,533,680UNIVERSITY OF HAWAII HI REVENUE 6.034 10/01/2040 25,000,000 27,910,750UNIVERSAL HOSPITAL SERVICES 7.625 08/15/2020 400,000 420,000UNIVISION COMMUNICATIONS 5.125 05/15/2023 500,000 472,500UNIVISION COMMUNICATIONS 6.750 09/15/2022 2,925,000 3,071,250UNIVISION COMMUNICATIONS 6.875 05/15/2019 1,050,000 1,102,500UNIVISION COMMUNICATIONS 7.875 11/01/2020 2,250,000 2,435,625UNIVISION COMMUNICATIONS 8.500 05/15/2021 1,500,000 1,593,750UPC HOLDING BV 9.875 04/15/2018 1,650,000 1,790,250UPCB FINANCE 7.250 11/15/2021 2,100,000 2,220,750UPCB FINANCE 6.875 01/15/2022 1,000,000 1,035,000UPS OF AMERICA INC 8.375 04/01/2020 27,000,000 35,570,907UPS OF AMERICA INC 8.375 04/01/2030 10,000,000 14,022,520US AIRWAYS 6.750 12/03/2022 75,000 78,000US AIRWAYS 5.450 06/03/2018 100,000 94,500US AIRWAYS 6.125 06/01/2018 275,000 259,875US COAT ACQUSITION INC. 7.375 05/01/2021 3,010,000 3,070,200US FOODS INC 8.500 06/30/2019 4,850,000 5,068,250US STEEL CORP 6.875 04/01/2021 100,000 97,000UNITED STATES TREASURY BONDS 0.250 06/30/2015 500,000,000 500,195,500UNITED STATES TREASURY BONDS 6.000 02/15/2026 25,000,000 33,562,500UNITED STATES TREASURY BONDS 6.375 08/15/2027 25,000,000 35,000,000UNITED STATES TREASURY BONDS 6.500 11/15/2026 50,000,000 70,328,100




Fixed Income

June 30, 2013



UNITED STATES TREASURY BONDS 6.625% 02/15/2027 $50,000,000 71,203,100USG CORP 6.300 11/15/2016 1,000,000 1,020,000USG CORP 7.875 03/30/2020 1,790,000 1,951,100USG CORP 8.375 10/15/2018 960,000 1,039,200USG CORP 9.750 01/15/2018 750,000 851,250UTAH COUNTY UT TRANSPORTATION 6.510 12/01/2034 7,000,000 7,748,160UTAH ST TRANSIT AUTHORITY SALES TAX 5.705 06/15/2040 15,000,000 16,177,650VALEANT PHARMACEUTICALS 6.375 10/15/2020 2,300,000 2,274,125VALEANT PHARMACEUTICALS 6.500 07/15/2016 1,150,000 1,184,500VALEANT PHARMACEUTICALS 6.750 10/01/2017 125,000 129,375VALEANT PHARMACEUTICALS 6.750 08/15/2021 2,925,000 2,928,656VALEANT PHARMACEUTICALS 6.875 12/01/2018 800,000 820,000VALEANT PHARMACEUTICALS 7.000 10/01/2020 1,500,000 1,530,000VALEANT PHARMACEUTICALS 7.250 07/15/2022 1,150,000 1,167,250VANGUARD HEALTH HOLDING CO. 7.750 02/01/2019 300,000 318,000VANGUARD HEALTH HOLDING CO. 8.000 02/01/2018 1,500,000 1,590,000VANTAGE ONCOLOGY LLC 9.500 06/15/2017 1,000,000 990,000VECTOR GROUP LTD 7.750 02/15/2021 2,375,000 2,452,188VERISIGN INC 4.625 05/01/2023 3,650,000 3,540,500VERIZON COMMUNICATIONS 7.750 12/01/2030 60,000,000 77,731,860VERIZON COMMUNICATIONS 8.750 11/01/2018 8,125,000 10,589,638VERIZON PENNSYLVANIA LLC 8.350 12/15/2030 19,756,000 25,271,223VERIZON PENNSYLVANIA LLC 8.750 08/15/2031 17,000,000 22,490,269VERTELLUS SPECIALTIES 9.375 10/01/2015 500,000 452,500VIASAT INC 6.875 06/15/2020 2,550,000 2,690,250VIKING CRUISES LTD 8.500 10/15/2022 625,000 684,375VIMPELCOM HOLDINGS 5.200 02/13/2019 1,000,000 975,000VIMPELCOM HOLDINGS 7.504 03/01/2022 600,000 621,000VIMPELCOM HOLDINGS 7.504 03/01/2022 700,000 724,500VIRGIN MEDIA SECURED FINANCE 5.250 01/15/2021 3,225,000 3,225,284VIRGINIA ELECTRIC + POWER CO. 8.875 11/15/2038 15,000,000 23,703,390VIRGINIA ST RESOURCES AUTHORITY 5.790 11/01/2040 5,000,000 5,544,900VISANT CORP 10.000 10/01/2017 750,000 691,875VISKASE COS INC 9.875 01/15/2018 1,000,000 1,057,500VPII ESCROW CORP 6.750 08/15/2018 300,000 307,500VPII ESCROW CORP 7.500 07/15/2021 575,000 595,125VULCAN MATERIALS 6.500 12/01/2016 175,000 189,438VWR FUNDING INC 7.250 09/15/2017 2,000,000 2,070,000W + T OFFSHORE INC 8.500 06/15/2019 1,053,000 1,087,223WAL MART STORES INC 1.125 04/11/2018 20,000,000 19,409,660WAL MART STORES INC 5.875 04/05/2027 15,000,000 18,204,570WAL MART STORES INC 7.550 02/15/2030 10,000,000 13,718,010WALT DISNEY COMPANY/THE 2.750 08/16/2021 10,000,000 9,843,380WALTER ENERGY INC 8.500 04/15/2021 2,000,000 1,600,000WALTER ENERGY INC 9.875 12/15/2020 1,000,000 870,000WARNER CHILCOTT CO LLC 7.750 09/15/2018 2,250,000 2,430,000WASHINGTON DC CONVENTION 6.764 10/01/2039 20,000,000 20,487,200WASHINGTON MD SUBURBAN 5.000 06/01/2029 8,000,000 8,609,840WASHINGTON ST UNIVERSITY 6.414 10/01/2034 10,000,000 11,217,600




Fixed Income

June 30, 2013



WATCO COMPANY/WATCO FINANCE CO. 6.375% 04/01/2023 $3,100,000 3,084,500WAVEDIVISION ESCROW COMPANY 8.125 09/01/2020 2,975,000 3,079,125WEATHERFORD BERMUDA 9.625 03/01/2019 40,000,000 50,568,840WEATHERFORD BERMUDA 9.875 03/01/2039 60,000,000 81,715,560WELLS ENTERPRISES INC 6.750 02/01/2020 1,450,000 1,518,875WELLTEC 8.000 02/01/2019 700,000 728,000WESTERN REFINING INC 6.250 04/01/2021 1,000,000 977,500WEX INC 4.750 02/01/2023 1,000,000 945,000WHIRLPOOL CORP 3.700 03/01/2023 1,000,000 958,414WILLIAM LYON HOMES INC 8.500 11/15/2020 300,000 326,250WIND ACQUISITION 6.500 04/30/2020 1,225,000 1,215,813WIND ACQUISITION 7.250 02/15/2018 3,530,000 3,556,475WIND ACQUISITION 7.250 02/15/2018 200,000 199,500WIND ACQUISITION 11.750 07/15/2017 5,485,000 5,704,400WIND ACQUISITION 12.250 07/15/2017 212,625 214,220WINDSTREAM CORP 6.375 08/01/2023 2,845,000 2,660,075WINDSTREAM CORP 7.500 04/01/2023 1,175,000 1,192,625WINDSTREAM CORP 7.500 06/01/2022 3,190,000 3,253,800WINDSTREAM CORP 7.750 10/01/2021 1,800,000 1,863,000WINDSTREAM CORP 8.125 08/01/2013 160,000 160,400WINDSTREAM CORP 8.125 09/01/2018 950,000 1,011,750WINSTON SALEM NC WATER & SEWER 5.294 06/01/2034 6,000,000 6,343,380WMG ACQUISITION CORP 6.000 01/15/2021 1,282,000 1,304,435WMG ACQUISITION CORP 11.500 10/01/2018 1,600,000 1,832,000WMG HOLDINGS CORP 13.750 10/01/2019 150,000 174,750WOK ACQUISITION CORP 10.250 06/30/2020 300,000 330,000WOLVERINE WORLD WIDE 6.125 10/15/2020 580,000 598,850WPX ENERGY INC 5.250 01/15/2017 1,000,000 1,025,000WPX ENERGY INC 6.000 01/15/2022 2,290,000 2,312,900WYNN LAS VEGAS 4.250 05/30/2023 1,000,000 925,000WYNN LAS VEGAS 5.375 03/15/2022 3,225,000 3,257,250WYNN LAS VEGAS 7.750 08/15/2020 350,000 388,640WYNN LAS VEGAS 7.875 05/01/2020 500,000 548,750YANKEE CANDLE CO 9.750 02/15/2017 1,000,000 1,036,250YCC HOLDINGS/YANKEE FINANCE 10.250 02/15/2016 400,000 411,000ZACHRY HOLDINGS INC 7.500 02/01/2020 1,145,000 1,179,350ZAYO GROUP 8.125 01/01/2020 1,050,000 1,139,250ZAYO GROUP 10.125 07/01/2020 1,550,000 1,720,500ZIONS BANCORPORATION 5.800 12/31/2049 1,500,000 1,410,000

Total fixed income $ 15,057,282,748





Fixed Income

June 30, 2013



PRIVATE EQUITY FUNDS:AIMS/NJ EURO SMALL AND MID FUND I $115,498,132AIMS/NJ EURO SMALL AND MID FUND II 139,689,206AMERICAN INDUSTRIAL PARTNER CAPITAL FUND V 8,689,984ANACAP CREDIT OPPORTUNITIES II 26,599,362ANACAP FINANCIAL PARTNERS II 63,664,401APOLLO INVESTMENT FUND VI 43,130,793AUDAX MEZZANINE FUND II 11,857,665AVENUE ASIA SPECIAL SITUATIONS FUND IV 15,404,127AVENUE SPECIAL SITUATION FUND IV 677,710AVENUE SPECIAL SITUATION FUND V 6,165,122BLACKSTONE CAPITAL PARTNERS V 92,398,767BLACKSTONE CAPITAL PARTNERS VI 8,380,223BLACKSTONE MEZZANINE PARTNERS II 11,830,292BLACKSTONE TACTICAL OPPORTUNITIES FUND 112,830,379CARLYLE MEZZANINE PARTNERS FUND II 53,902,425CENTERBRIDGE CAPITAL PARTNERS 70,445,829CENTERBRIDGE CAPITAL PARTNERS II 49,476,251COURT SQUARE CAPITAL PARTNERS II 78,058,754CSFB NJDI INVESTMENT FUND 173,450,893CSFB/NJDI EMERGING OPPORTUNITIES FUND SERIES 2006 70,917,786CSFB/NJDI EMERGING OPPORTUNITIES FUND SERIES 2008 63,312,493CSFB/NJDI INVESTMENT SERIES 2006 207,289,123CSFB/NJDI INVESTMENT SERIES 2008 110,485,682FAIRVIEW CAPSTONE PARTNERS 81,481,516FAIRVIEW CAPSTONE PARTNERS II 65,090,997GENERAL CATALYST GROUP VI 3,988,185GLEACHER MEZZANINE FUND II 21,171,740GSO CAPITAL OPPORTUNITIES FUND 47,120,000GSO CAPITAL OPPORTUNITIES FUND II 32,746,815HELLMAN + FRIEDMAN CAPITAL PARTNERS VI 64,279,779HIG BAYSIDE DEBT+LBO FUND II 43,807,580INTERMEDIA PARTNERS VII L P 114,212,784JLL PARTNERS FUND V 43,961,935JLL PARTNERS FUND VI 59,977,906JP MORGAN VENTURE CAPITAL III 42,063,871KHOSLA VENTURES IV 8,985,754KNIGHT/TPG NPL R 49,165,217KPS SPECIAL SITUATIONS FUND III 14,434,694LEXINGTON CAPITAL PARTNERS VI 31,364,000LINDSAY GOLDBERG + BESSEMER II 81,326,180LINDSAY GOLDBERG III LP 132,715,671MATLIN PATTERSON GLOBAL OPPORTUNITIES PARTNERS 67,585,663MHR INSTITUTIONAL PARTNERS III 59,450,479NB CROSSROADS XVIII VENTURE CAPITAL 44,024,900NB SECONDARY OPPORTUNITIES FUND II 66,613,767NB/NJ CUSTOM INVESTMENT FUND 92,859,501NB/NJ CUSTOM INVESTMENT FUND II 62,937,938NEW JERSEY ASIA INVESTORS 88,450,223

Schedule 27


Common Pension Funds — Portfolio of InvestmentsAlternative Investments and Global Diversified Credit Funds

June 30, 2013

NAME FAIR VALUE


NEW JERSEY ASIA INVESTORS II $37,199,428NEW MOUNTAIN PARTNERS III 89,150,386NEWSTONE CAPITAL PARTNERS II, LP 40,000,000NEWSTONE CAPITAL PARTNERS LP 20,000,000NJHL EUROPE BUYOUT FUND SERIES A 128,896,893NJHL EUROPE BUYOUT FUND SERIES B 121,916,189NJHL EUROPE BUYOUT FUND SERIES C 133,405,701OAK HILL CAPITAL PARTNERS II 38,911,298OAK HILL CAPITAL PARTNERS III 238,213,862ONEX PARTNERS II LP 69,259,990ONEX PARTNERS III L P 83,988,505PARTNERS GROUP SECONDARY 2006 24,759,643PARTNERS GROUP SECONDARY 2008 64,852,915QUADRANGLE CAPITAL PARTNERS II 24,778,741ROARK CAPITAL PARTNERS III LP 11,529,953SILVER LAKE PARTNERS III 61,278,867SONJ PRIVATE OPPORTUNITIES FUND 69,695,657SONJ PRIVATE OPPORTUNITIES FUND II 286,043,505STERLING CAPITAL PARTNERS IV 20,333,478TENAYA CAPITAL VI 10,466,758TENEX CAPITAL PARTNERS 16,428,588TENEX CAPTIAL PARTNERS SECONDARY 6,571,436THE RESOLUTE FUND II 87,255,378TPG FINANCIAL PARTNERS 11,091,653TPG GROWTH II 16,775,163TPG OPPORTUNITIES PARTNERS II 63,116,833TPG PARTNERS V 130,165,490TPG PARTNERS VI 138,392,794TPG STAR 78,971,014VISTA EQUITY PARTNERS III 95,700,000VISTA EQUITY PARTNERS IV 94,400,000WARBURG PINCUS PRIVATE EQUITY IX 127,120,473WARBURG PINCUS PRIVATE EQUITY VIII 17,859,115WARBURG PINCUS PRIVATE EQUITY X 384,799,647WARBURG PINCUS PRIVATE EQUITY XI 58,321,845WELSH CARSON ANDERSON STOWE XI 81,430,861WLR RECOVERY FUND IV 69,634,899

TOTAL PRIVATE EQUITY FUNDS 6,006,689,452




June 30, 2013

NAME FAIR VALUE


ABSOLUTE RETURN FUNDS:AG GARDEN PARTNERS LP $9,337,711AIMS/NJ MULTI-STRATEGY PORTFOLIO LLC 675,628,242ARCHIPELAGO PARTNERS L.P. 223,878,802ARDEN GARDEN STATE NJ FUND 538,467,895ASCEND PARTNERS FUND II 8,280,232ASIAN CENTURY QUEST (QP) FUND LP 84,115,783BAY POND PARTNERS L.P. 168,434,450BLUECREST CAPITAL INTERNATIONAL LIMITED 201,406,867BREVAN HOWARD FUND LIMITED 214,951,233CADIAN FUND LP 96,759,598CANYON BALANCED FUND CAYMAN LTD 159,544,717CANYON VALUE REALIZATION FUND 115,647,733CENTERBRIDGE CREDIT PARTNERS 256,830,387CEVIAN CAPITAL II LP 133,450,305CLAREN ROAD CREDIT FUND, LTD. 162,729,977DAVIDSON KEMPNER INSTITUTIONAL PARTNERS 208,871,108DYAL NJ INVESTORS LP 94,994,995ELLIOTT ASSOCIATES LP 22,382,000FARALLON CAPITAL INSTITUTIONAL PARTNERS 85,984,140GSO CREDIT A PARTNERS LP 324,503,666GSO SPECIAL SITUATIONS 125,337,370KING STREET CAPITAL LP 228,634,153LAZARD RATHMORE FUND, LTD 104,950,257LYNX BERMUDA LTD 93,413,973MARATHON SPECIAL OPPORTUNITIES FUND LTD 7,557,581MKP OPPORTUNITIES PARTNERS, L.P. 159,313,243OMEGA OVERSEAS PARTNERS LTD CL B2 181,052,264OZ DOMESTIC PARTNERS II 242,465,668OZNJ PRIVATE OPPORTUNITIES LP 44,938,562PERSHING SQUARE INTERNATIONAL LTD 234,467,613PROTÉGÉ PARTNERS 51,824,338PROTÉGÉ QB PARTNERS 107,411,566RC WOODLEY 809,172,694REGIMENT CAPITAL LTD 159,707,850RESERVOIR STRATEGIC PARTNERS FUND 108,967,163SCOPIA PX, LLC 132,731,458THIRD POINT OFFSHORE FUND LTD 125,738,805VALUEACT CAPITAL PARTNERS II, LP 200,144,344VISIUM BALANCED OFFSHORE FUND 115,108,532WINTON FUTURES FUND CLASS B 206,572,480YORK CAPITAL MANAGEMENT LP 143,631,206

TOTAL ABSOLUTE RETURN FUNDS 7,369,340,961




June 30, 2013

NAME FAIR VALUE


REAL ESTATE FUNDS:AEW CORE PROPERTY TRUST US INC $88,218,471ASIA DRAGON FUND LIMITED 88,882,493BLACKROCK DIAMOND PROPERTY FUND 15,913,295BLACKSTONE REAL ESTATE PARTNERS VII 178,288,862BLACKSTONE REAL ESTATE PARTNERS VI TE 2 178,731,545BLACKSTONE REAL ESTATE PARTNERS V 90,793,080CAPRI URBAN INVESTORS 31,164,216CARLYLE REALTY PARTNERS V 54,076,124CB RICHARD ELLIS STRATEGIC PARTNERS EUROPE 23,220,421CB RICHARD ELLIS STRATEGIC PARTNERS US FUND V 53,918,100CB RICHARD ELLIS STRATEGIC PARTNERS US FUND IV 8,915,948CIM FUND III LP 65,900,524CIM URBAN REIT LLC 67,784,813CPI CAPITAL PARTNERS EUROPE 22,620,427CT HIGH GRADE PARTNERS II 683,010,769EXETER CORE INDUSTRIAL VENTURE 72,000,433FIVE MILE CAPITAL PARTNERS II LP 56,364,187GUGGENHEIM STRUCTURE REAL ESTATE 26,196,771HEITMAN AMERICA REAL ESTATE TRUST 108,447,058HUNT COMMERCIAL REALTY PARTNERS III LP 15,977,445HUNT COMMERCIAL REALTY PARTNERS II 15,835,706HUNT UK REALTY PARTNERS, LP 4,633,011JP MORGAN ALTERNATIVE PROPERTY FUND DOMESTIC II 5,665,813L + B DIVERSIFIED STRATEGY PARTNERS 15,325,420LASALLE ASIA OPPORTUNITIES FUND III LTD 37,026,094LONE STAR FUND VII (U.S.) 183,167,525LONE STAR REAL ESTATE FUND II US 48,025,612LUBERT-ADLER REAL ESTATE FUND VI-B 96,704,001MACFARLANE URBAN REAL ESTATE FUND II LP 12,314,371MORGAN STAN PRIME PROPERTY FUND LLC 87,149,736NJDOI/GMAM CORE PLUS REAL ESTATE INVESTMENT 48,418,812NJDOI/GMAM OPPORTUNISTIC REAL ESTATE INVESTMENT 12,508,853NORTHWOOD REAL ESTATE CO-INVESTORS LP —NORTHWOOD REAL ESTATE PARTNERS 18,659,585PLA RESIDENTIAL FUND III 56,943,334PRUDENTIAL PROPERTY INVESTMENT SEPARATE 174,853,270PRUDENTIAL PROPERTY INVESTMENT II 47,237,879REAL ESTATE CAPITAL ASIA PARTNER III 23,959,125REALTY ASSOCIATES FUND IX 77,695,298REALTY ASSOCIATES FUND VIII 53,925,597RREEF GLOBAL OPPORTUNITIES FUND II 59,529,401SILVERPEAK LEGACY PARTNERS III 23,511,849TUCKER DEVELOPMENT AND ACQUISITION FUND 46,015,125WALTON STREET MEXICO FUND I 22,939,620WALTON STREET REAL ESTATE FUND VI LP 84,332,837WALTON STREET REAL ESTATE SIDECAR V LP 8,313,860WALTON STREET REAL ESTATE V 50,856,080WARBURG PINCUS REAL ESTATE I 92,870,085




June 30, 2013

NAME FAIR VALUE


WESTBROOK REAL ESTATE FUND VIII $91,916,267WESTBROOK REAL ESTATE FUND VII 33,092,854WHEELOCK STREET REAL ESTATE FUND 49,333,994

TOTAL REAL ESTATE FUNDS 3,513,185,996

REAL ASSET FUNDS:BLACKSTONE BX/ NJ CO INVEST LP 49,861,905BLACKSTONE ENERGY PARTNERS 66,746,693BLACKSTONE RESOURCES SELECT OFFSHORE FUND 206,649,971BLACKSTONE TACTICAL OPPORTUNITIES FUND 154,726,426GSO ENERGY PARTNERS - A LP 153,066,207RC WOODLEY PARK LP 138,315,582SCHRODER COMMODITY PORTFOLIO 328,475,253SHERIDAN PRODUCTION PARTNERS IA 43,565,000SHERIDAN PRODUCTION PARTNERS IIB 83,292,000THE ETAP FUND LLC 140,006,333THE TAP FUND LLC 108,806,054TPF II 49,598,888

TOTAL REAL ASSET FUNDS 1,523,110,312

GLOBAL DIVERSIFIED CREDIT FUNDS:BLACKROCK CREDIT INVESTORS CO-INVEST 26,350,855BLACKROCK CREDIT INVESTORS 68,206,961CERBERUS NJ CREDIT OPPORTUNITIES FUND 212,599,200GOLDENTREE CREDIT OPPORTUNITIES LP 396,912,181KNIGHT TPG NPL C L.P. 74,087,319OCH ZIFF CAPITAL MANAGEMENT 811,409,573OZSC II 148,182,980TAC 2007 4,627,392TPG SPECIALITY LENDING INC TSL 72,322,292

TOTAL GLOBAL DIVERSIFED CREDIT FUNDS 1,814,698,753

TOTAL ALTERNATIVE INVESTMENTS AND GLOBAL DIVERSIFIED FUNDS $ 20,227,025,474





June 30, 2013

NAME FAIR VALUE


SPDR S+P ETF TRUST 162 exp 8/17/2013 PUT 15,000 $6,675,000

Total options contract 6,675,000

Schedule 28


Common Pension Funds — Portfolio of InvestmentsDerivatives

June 30, 2013

CONTRACT CONTRACTS/ FAIRNAME TYPE SHARES VALUE

S&P 500 INDEX E-MINI exp 9/20/2013 800 $292,000

U.S. TREASURY LONG BOND (CBT) exp 9/19/2013 2,100 (525,000)

Total futures contracts (233,000)

Total derivatives $6,442,000


UNREALIZEDNAME CONTRACTS GAIN/(LOSS)



INVESTMENT SECTION




State of New JerseyDEPARTMENT OF THE TREASURY


(609) 292-7524 TDD (609) 292-7718www.state.nj.us/treasury/pensions

Mailing Address:PO Box 295

Trenton, NJ 08625-0295Location:

50 West State StreetTrenton, New Jersey

ANDREW P. SIDAMON-ERISTOFF

State Treasurer

FLORENCE J. SHEPPARD

Acting Director

CHRIS CHRISTIEGovernor

KIM GUADAGNOLt. Governor

June 30, 2013

The Division of Investment ("Division"), under the jurisdiction of the State Investment Council (the"Council"), is responsible for the investment management of the assets of seven public pension systems:The Consolidated Police & Firemen's Pension Fund, the Judicial Retirement System, the Police &Firemen's Retirement System, the Prison Officers Pension Fund, the Public Employees' RetirementSystem, the State Police Retirement System, and the Teachers' Pension and Annuity Fund (collectivelyreferred to as the "Pension Fund").

The Division was created in 1950 by the New Jersey Legislature (P.O. 1950, c.270) to centralize all func-tions relating to the purchase, sale or exchange of securities for the State's diverse finds under experi-enced and professional management. The statute also established the Council to formulate investmentprocedures and policies to be followed by the Director. The statute vests investment authority in theDirector, who is appointed by the State Treasurer from candidates nominated by the Council. New andamended regulations adopted by the Council after public comments are filed with the Office ofAdministrative Law and reported in the New Jersey Register.

The Council is comprised of 16 members, appointed to fixed terms. Nine members are appointed by theGovernor for staggered five-year terms, and are drawn traditionally from the corporate investment commu-nity. Eight of these nine hold appointments subject to the advice and consent of the Senate, and oneappointee is selected by the Governor from nominees submitted jointly by the President of the Senate andSpeaker of the Assembly. Two members are appointed by the Governor for five-year terms from nomineessubmitted by the New Jersey State AFL-CIO, with at least one appointed member being a member of aunion representing police officers or firefighters. Two members are appointed by the Governor for threeyear terms from nominees submitted by the New Jersey Education Association and the State TroopersFraternal Organization. Three members are designated to the Council for three-year terms by the respec-tive pension system's board of trustees for the Public Employees' Retirement System, the Police &Firemen's Retirement System Board, and the Teachers' Pension and Annuity Fund. State law requires thatno Council member shall hold any office, position or employment with any political party, and none canbenefit from the transactions of the Division.

All investments by the Director must conform to the heightened "prudent person" standard set by the NewJersey Legislature (P.L. 1997, c.26). This standard requires the Director "to manage and invest the portfo-lio solely in the interests of the beneficiaries of the portfolio and for the exclusive purpose of providing finan-cial benefits to the beneficiaries of the portfolio."

To the best of our knowledge, performance is calculated using the time-weighted return based on the mod-ified Dietz method.

Christopher McDonoughActing Director, Division of Investment


INVESTMENTS


State Investment CouncilKey Regulations Pertaining to Pension Fund Assets (at June 30, 2013)

• Public equity investments are limited to no more than 70 percent of the portfolio, including both domestic andinternational equities.

• Investments in international securities are limited to 30 percent of the portfolio, including both international equi-ties and fixed income obligations.

• The market value of securities of companies in emerging markets is limited to 50 percent of the percentagederived by (1) dividing the total market capitalization of companies included in the MSCI Emerging MarketIndex by (2) the total market capitalization of the companies included in the MSCI All-Country World Ex-UnitedStates Index of the total market value of the assets held by Common Pension Fund D.

• The currency exposure on international investments may be hedged through currency transactions.

• Unlimited investment is permitted in securities issued by the U.S. Government and designated agencies.

• Investment in domestic and international corporate obligations, non-convertible preferred stocks of U.S.Corporations, and collateralized notes and mortgages are subject to a minimum rating requirement of Baa3 byMoody’s, BBB- by Standard & Poor’s, and BBB- by Fitch Ratings. Investment in mortgage backed passthroughsecurities are subject to a minimum rating requirement of A3 by Moody’s, A- by Standard & Poor’s, and A- byFitch Ratings. Up to eight percent of the pension assets may be invested in these securities not meeting theminimum rating requirements.

• Up to 3 percent of the domestic equity portfolio may consist of debt in lieu of common stock, regardless of thecredit rating of the issuing company.

• Investments in international government and agency obligations are limited to direct debt obligations of a sov-ereign government or its political subdivisions, debt obligations of agencies of a sovereign government whichare unconditionally guaranteed as to principal and interest by the sovereign government’s full faith and credit,and debt obligations of international agencies that are directly backed by the collective credit of multiple sover-eign governments.

• Investments in fixed income securities such as municipal bonds, commercial paper, repurchase agreements,and certificates of deposit are all permitted by specific regulations which specify high credit standards and con-servative investment limits.

• Subject to limitations established by the State Investment Council, futures contracts, certain options contractsand exchange-traded funds may be utilized in the management of the portfolios.

• The Council regulations contain limits on (1) the percentage of the portfolio that can be invested in any one securityand (2) the percentage of the outstanding amount of any one security that can be owned by the portfolio. These lim-its help to insure that the portfolio is adequately diversified and that competitive market pricing is obtained.

• Investments in alternative investments are limited to no more than 38% of the portfolio in the aggregate, withindividual category limitations for private equity (12%), real estate (9%), real assets (7%), and hedge funds(15%).

Proxy Voting

• Proxy voting policy addresses key issues.

• The Division seeks to vote all proxies received, unless shares are out on loan. Under certain circumstances,the Division may restrict shares from being loaned, or recall loaned shares in order to preserve the right to voteon proxy issues.

INVESTMENTS


Rate of Return


2013

Annualized

3-Year 5-Year

Total Pension Fund(1)

11.78% 10.59% 5.32%

Equity Segment

Common Pension Fund A (Domestic Equities) 21.56 18.59 8.13

S&P 1500 Index 21.13 18.60 7.27

Common Pension Fund D (International Equities) 11.90 5.46 (1.28)

MSCI All World Country Index (ex US)-net 13.63 7.99 (0.80)

Fixed Income Segment

Common Pension Fund B (Domestic Fixed Income) 1.73 7.70 9.24

Common Pension Fund B Blended Benchmark 0.87 6.64 8.28

Alternative Investments Segment

Common Pension Fund E 11.63 10.12 1.50

Hedge Funds 12.58 7.13 1.66

HFRI Fund of Funds Composite (2) 8.41 3.18 (0.51)

Private Equity 14.86 13.59 6.18

Cambridge Private Equity Index (3) 12.85 15.09 7.46

Real Estate 13.17 12.94 (3.66)

NCREIF Property Index 10.73 13.14 2.79

Real Assets/Commodities (0.88) 4.77 (9.01)

DJUBS TR Index (8.01) (0.26) (11.61)

Note: Performance is calculated using the time-weighted return based on the modified Dietz method.(1)

Excludes performance on Police and Fire Mortgages.(2) Index is reported on one month lag.(3) Index is reported on one quarter lag.


INVESTMENTS


Pension Fund Asset AllocationJune 30, 2013

Actual %

Target%

Difference %

Allocation $

Absolute Return/Risk Mitigation 2.83 4.00 (1.17) 2,017.56

Risk Mitigation 2.83 4.00 (1.17) 2,107.56

Cash Equivalents(1) 4.57 1.50 3.07 3,404.25

TIPS 2.39 2.50 (0.11) 1,782.93

US Treasuries 0.44 2.50 (2.06) 328.31

Total Liquidity 7.41 6.50 0.91 5,515.49

Investment Grade Credit 13.59 13.00 0.59 10,120.23

High Yield Fixed Income 4.87 6.00 (1.13) 3,623.46

Credit Oriented Hedge Funds 2.90 4.00 (1.10) 2,156.32

Debt Related Private Equity 1.08 1.50 (0.42) 806.02

Police and Fire Mortgage Program(2) 1.13 1.50 (0.37) 838.80

Total Income 23.57 26.00 (2.43) 17,544.82

Commodities and Other Real Assets 2.53 4.00 (1.47) 1,886.55

Real Estate 5.05 5.50 (0.45) 3,762.52

Total Real Return 7.59 9.50 (1.91) 5,649.07

US Equity 27.54 23.80 3.74 20,504.23

Non-US Developed Markets Equity 12.52 12.50 0.02 9,317.45

Emerging Markets Equity 6.87 7.00 (0.13) 5,117.14

Equity Oriented Hedge Funds 4.11 4.50 (0.39) 3,062.74

Buyouts/Venture Capital 6.99 6.20 0.79 5,200.67

Total Global Growth 58.03 54.00 4.03 43,202.24

Other Cash and Recievables 0.57 0.00 0.57 426.71

Total Pension Fund 100.00 100.00 0.00 74,445.89

(1) The cash aggregate comprises the four common fund and seven plan cash accounts.(2) Police & Fire Mortgage Program are private mortgages that cannot be sold.

Totals may not equal sum of components due to rounding.


INVESTMENTS


*Alternative Investment Program commenced 9/05


INVESTMENTS


U.S. EQUITIES MARKETPortfolio Sector Weightings

June 30, 2013

INTERNATIONAL EQUITIES MARKETSPortfolio Sector Weightings

June 30, 2013


INVESTMENTS


LIST OF THE LARGEST ASSETS HELD

Largest Domestic Stock Holdings (By Fair Value)

June 30, 2013

Shares StockFair Value

(USD)

1,414,000 Apple Inc. $560,057,120

5,300,000 Exxon Mobil Corp. 478,855,000

11,650,000 Microsoft Corp. 402,274,500

9,259,890 Wells Fargo & Co. 382,155,660

6,105,000 J.P. Morgan Chase & Co. 322,282,950

364,000 Google Inc. 320,454,680

6,570,000 Merck & Co. Inc. 305,176,500

3,674,945 Procter & Gamble Co. 282,934,016

3,250,000 Johnson & Johnson 279,045,000

9,463,112 Pfizer Inc. 265,061,767

Largest Domestic Bond Holdings (By Fair Value)

June 30, 2013

Par Bonds Coupon DueFair Value

(USD)

502,985,000 US Treasury Tips 0.125% 4/15/2018 $515,952,456

500,000,000 US Treasury Bonds 0.250 6/30/2015 500,195,500

478,534,000 US Treasury Tips 0.125 1/15/2023 463,990,873

230,357,250 US Treasury Tips 0.125 4/15/2017 236,350,224

217,919,100 US Treasury Tips 1.125 1/15/2021 223,054,235

165,000,000 US Treasury Strips 0.000 8/15/2025 114,690,015

98,494,000 AT+T Inc 6.500 9/1/2037 111,750,997

89,000,000 Aid Israel 5.500 4/26/2024 108,144,879

80,000,000 Nabors Industries Inc. 9.250 1/15/2019 99,258,160

100,000,000 EMC Corp. 1.875 6/1/2018 98,850,300

A complete listing of the portfolio is available on the Division of Investment’sWeb site at www.state.nj.us/treasury/doinvest.


INVESTMENTS


Largest International Stock Holdings (By Fair Value)

June 30, 2013

Shares StockFair Value

(USD)

29,222,500 Vanguard FTSE Emerging Markets $1,133,248,550

22,954,600 IShares MSCI Emerging Markets 885,358,922

746,219 Roche Holding AG 185,342,139

2,550,000 IShares MSCI Emerging Markets 145,630,500

2,016,908 Nestle SA 132,058,818

2,200,000 IShares MSCI EAFE ETF 126,236,000

752,177 L’Oreal Prime De Fidelite 123,436,731

4,761,385 Glaxosmithkline PLC 119,011,877

11,092,504 HSBC Holdings PLC 114,739,715

97,495 Samsung Electronics Co. LTD 114,564,415


Largest International Bond Holdings (By Fair Value)

June 30, 2013

Par Bonds Coupon DueFair Value

(USD)

84,913,500 TSY 1 7/8% 2022 I/L GILT 1.875 11/22/2022 $157,533,896

140,000,000 Province of British Columbia 2.650 9/22/2021 139,374,200

99,000,000 Province of Quebec 7.500 9/15/2029 135,990,855

69,000,000 Hydro Quebec 8.500 12/1/2029 102,041,685

75,000,000 Province of Ontario 4.400 4/14/2020 83,160,300

90,000,000 Province of British Columbia 2.000 10/23/2022 82,746,000

87,000,000 Province of Manitoba 2.100 9/6/2022 80,831,700

60,000,000 Province of Manitoba 9.625 12/1/2018 80,811,480

75,000,000 Province of Ontario 1.650 9/27/2019 71,647,500

51,000,000 Devon Financing Co. LLC 7.875 9/30/2031 66,037,860


INVESTMENTS


Commission on Global Securities

Fiscal Year 2013

Brokers Shares(1)

TotalCommissions(1)

Commissions per Share

J.P. Morgan Securities LLC 59,342,229 $1,744,900 $0.029

Instinet, LLC 72,414,994 1,736,808 0.024

Credit Suisse Securities LLC 76,314,897 1,502,890 0.020

Morgan Stanley & Co., LLC 606,364,458 1,064,300 0.002

Citigroup Global Markets Inc. 35,524,576 973,216 0.027

Deutsche Bank AG 76,444,907 657,038 0.009

Goldman, Sachs & Co. 41,285,921 638,507 0.015

Capital Institutional Services, Inc. 18,206,675 564,943 0.031

UBS Securities LLC 17,409,458 561,197 0.032

Sanford C. Bernstein & Co., LLC 23,960,846 484,068 0.020

(1) Excludes options written on approximately 92.9 million shares with total commissions of $871,000.


INVESTMENTS


Schedule of FeesYear ending June 30, 2013

Net Assetsunder Basis

(000’s) Management Fees Points

Investment Advisers’ fees:Fixed Income advisers $ 1,425,987 $ 4,504Emerging Market advisers 2,782,998 16,095

$ 4,208,985 20,599 48.941

Alternative investment and global diversified credit funds $ 20,297,063 378,061 186.264

Other investment service fees:Custodian 119Security Lending Fees 2,721Investment consultants 2,759

5,599

Total $ 74,446,450 $ 404,259 54.302


ACTUARIAL SECTION




April 3, 2013

Board of TrusteesPublic Employees' Retirement System

of New Jersey

Re: Actuary’s Certification Letter

Members of the Board:

An actuarial valuation of the Public Employees’ Retirement System of New Jersey (“PERS”) is per-formed annually to measure the ongoing costs of the System (with required contributions determinedseparately for the State and Local employers) and the progress towards the funding goals of theSystem over time. In general, the financial goals of the PERS are a pattern of contributions, which issufficient to cover the normal cost of the System plus the contribution towards the unfunded accruedliability.

In accordance with the New Jersey statutes, employers are required to make two contributions to theSystem, a normal contribution and an accrued liability contribution. The normal contribution for basicallowances and cost of living adjustments (COLA’s) is defined under the Projected Unit Credit fundingmethod as the present value of the benefits accruing during the current year. Prior to the July 1, 2010valuation, the unfunded accrued liability contribution for basic allowances and COLA’s was determinedas a level percentage of pay required to amortize the unfunded accrued liability over 30 years in annu-al payments increasing by 4% per year. The funding reform provisions of Chapter 78, P.L. 2011changed the methodology used to amortize the unfunded accrued liability. Beginning with the July 1,2010 actuarial valuation, the accrued liability contribution shall be computed so that if the contributionis paid annually in level dollars, it will amortize the unfunded accrued liability over an open 30 year peri-od. Beginning with the July 1, 2019 actuarial valuation, the accrued liability contribution shall be com-puted so that if the contribution is paid annually in level dollars it will amortize the unfunded accruedliability over a closed 30 year period (i.e., for each subsequent actuarial valuation, the amortizationperiod shall decrease by one year). Beginning with the July 1, 2029 actuarial valuation when theremaining amortization period reaches 20 years, any increase or decrease in the unfunded accruedliability as a result of actuarial losses or gains for subsequent valuation years shall serve to increaseor decrease, respectively, the amortization period for the unfunded accrued liability, unless an increasein the amortization period will cause it to exceed 20 years. If an increase in the amortization period asa result of actuarial losses for a valuation year would exceed 20 years, the accrued liability contribu-tion shall be computed for the valuation year using a 20 year amortization period.

The valuation reflects the funding reform provisions of Chapter 1, P.L. 2010. Chapter 1, P.L. 2010allows the State Treasurer to phase in to the full recommended pension contribution.The State wouldbe in compliance with its funding requirement provided the State makes a payment of at least 1/7thof the full contribution, as computed by the actuaries, in the State fiscal year commencing July 1,2011 and makes a payment in each subsequent fiscal year that increases by at least an additional1/7th until payment of the full contribution is made in the seventh fiscal year and thereafter.

The valuation reflects the final State contribution under Chapter 1, P.L. 2010 for fiscal year 2012,which allowed the State Treasurer to reduce the State normal and accrued liability contributions forfiscal year 2012 of $874,346,428 to $124,906,000.This amount excludes the Workers CompensationJudges Part contribution of $756,573 which is payable by fund transfer from the Second Injury Fundand the Non-Contributory Group Insurance Premium of $29,790,898. Accordingly, a fiscal year 2012


employer contribution of only $125,662,573 ($124,906,000 plus the Workers Compensation JudgesPart transfer of $756,573) was recognized for purposes of this valuation.

In addition, the fiscal year 2013 recommended State pension contribution of $924,432,941 has beenreduced to $264,123,697 and has been recognized as a receivable contribution for purposes of thisvaluation. This amount excludes the Worker Compensation Judges Part contribution of $685,799,which is payable by fund transfer from the Second Injury Fund and the estimated Non-ContributoryGroup Insurance Premium of $34,202,000. Accordingly, a fiscal year 2013 employer contribution of$264,809,496 ($264,123,697 plus the Workers Compensation Judges Part transfer of $685,799) wasrecognized as a receivable contribution for purposes of this valuation. This amount may be subject tochange per the requirements of the State’s fiscal year 2013 spending plan.

A State contribution of $1,050,074,677 is recommended for the fiscal year beginning July 1, 2013.Thisamount is comprised of an unfunded accrued liability payment of $851,910,247 plus a normal contri-bution of $198,164,430. However, the provisions of Chapter 1, P.L. 2010 allow the State Treasurer toreduce the recommended pension contribution for fiscal year 2014 to no less than 3/7th of the recom-mended pension contribution. Accordingly, the Chapter 1, P.L. 2010 minimum required pension contri-bution is $450,032,004. This is comprised of an unfunded accrued liability payment of $365,104,392and a normal contribution of $84,927,612. This amount excludes the Worker Compensation JudgesPart contribution of $674,009, which is payable by fund transfer from the Second Injury Fund and theestimated Non-Contributory Group Insurance Premium of $33,431,000. This amount may be subjectto change per the requirements of the State’s fiscal year 2014 spending plan.

The valuation again reflects the provisions of Chapter 42, P.L. 2002, which allowed Local employersto issue refunding bonds to retire the unfunded accrued liability due to certain early retirement incen-tive programs.

The valuation reflects Chapter 19, P.L. 2009, which allowed the State Treasurer to reduce Localemployers’ normal and accrued liability contributions to 50% of the amount certified for the State fis-cal year 2009. In addition, certain Local employers who were eligible under Chapter 19, P.L. 2009 todefer 50% of their State fiscal year 2009 pension contribution but did not were permitted to defer 50%of their State fiscal year 2010 recommended pension contribution. This unfunded liability will be paidby the Local employers in level annual payments over a period of 15 years with the first payment duein the fiscal year ending June 30, 2012. The unfunded liability will be adjusted by the rate of return onthe actuarial value of assets. The legislation also provides that a Local employer may pay 100% ofthe recommended contributions for State fiscal years 2009 and 2010. Such an employer will be cred-ited with the full payments and any such amounts will not be included in their unfunded liability.

The underlying demographic data is maintained and provided by the New Jersey Division of Pensionsand Benefits. The data is analyzed by Buck Consultants, for internal completeness and consistencyand compared with the prior valuation data to again ensure consistency.

As required under Chapter 84, P.L. 1954, an actuarial investigation of the demographic experience ofthe members and beneficiaries of PERS is made once in every three-year period. The contributionsfor the fiscal year beginning July 1, 2013 were based on the actuarial assumptions that were deter-mined from the July 1, 2008 to June 30, 2011 Experience Study and approved by the Board ofTrustees at the September 19, 2012 Board meeting. The Treasurer has recommended a change inthe economic assumptions used for the valuation. The rate of investment return has been revisedfrom 7.95% per annum to 7.90% per annum. The assumed future salary increases have beenreduced (the select period has been extended for five years and the ultimate rate has beendecreased by 0.25%). These assumptions will remain in effect for valuation purposes until such timethe Board or Treasurer recommends revised assumptions.

The valuation cost method used is the projected unit credit method.This method essentially funds theSystem’s benefits accrued to the valuation date. Experience gains and losses are recognized in futureaccrued liability contributions. The asset valuation method used was a five-year average of marketvalues with write-up. This method takes into account appreciation (depreciation) in investments in


order to smooth asset values by averaging the excess of the actual over the expected income, on amarket value basis, over a five-year period.

The valuation does not take into account any changes in U.S. equity prices and bond yields that haveoccurred after the valuation date. Taking these into account may significantly change the market andactuarial value of assets shown. The effect of these events on any funded ratios shown, and onRetirement System calculations, is not known. Retirement System funding and financial accountingrules generally prohibit reflection of changes in assets and underlying economic conditions that occurafter the valuation date.

The assumptions used to prepare the information required by Statements No. 25, No. 27 and No. 50of the Governmental Accounting Standards Board (GASB) were the same as those used for fundingpurposes.

In our opinion, the attached schedules of valuation results fairly represent the status of the PERS andpresent an accurate view of historical data. The underlying assumptions and methods used for bothfunding and GASB disclosure purposes are consistent with the statutory specifications and representa best estimate of the aggregate future experience of the System.

The following supporting schedules in the Actuarial Section were prepared by Buck Consultants:

• Summary of Actuarial Assumptions and Methods

• Schedule of Retired Members and Beneficiaries Added To and Removed From Rolls

• Schedule of Active Member Valuation Data

• Solvency Test

• Analysis of Past Financial Experience Reconciliation of Employer Contribution Rates

• Brief Summary of the Benefit and Contribution Provisions as Interpreted for Valuation Purposes

In addition, Buck Consultants prepared the “Schedule of Funding Progress” and the “Schedule ofEmployer Contributions” in the Financial Section.

To the best of our knowledge, this information is complete and accurate.The valuation was performedby, and under the supervision of, independent qualified actuaries who are members of the AmericanAcademy of Actuaries with experience in performing valuations for public retirement systems.

The valuation was prepared in accordance with the principles of practice prescribed by the ActuarialStandards Board and generally accepted actuarial procedures and methods. The calculations arebased on the current provisions of the Retirement System, and on actuarial assumptions that are indi-vidually and in the aggregate internally consistent and reasonable based on the actual experience ofthe Retirement System.


Buck Consultants

Janet H. Cranna, M.A.A.A., F.S.A., E.A., F.C.A., M.S.P.P.A.Principal, Consulting Actuary




SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS

Chapter 84, P.L. 1954 provides that once in every three-year period the actuary shall examine in detail the demo-graphic experience of the members and beneficiaries of the PERS to assure that the tables used for determiningexpected liabilities are consistent with recent experience.

The demographic assumptions used for the July 1, 2012 actuarial valuation of the PERS were based on the resultsof the experience study, which covered the period from July 1, 2008 to June 30, 2011, which were approved by theBoard of Trustees, and the revised economic assumptions, which were recommended by the Treasurer.

An outline of the actuarial assumptions and methods used for the July 1, 2012 valuation is as follows:

Valuation Interest Rate: 7.90% per annum, compounded annually.

Employee Contribution Interest Rate: 7.90% per annum.

COLA: No future COLA is assumed.

Separations From Service and Salary Increases: Representative values of the assumed annual rates of sepa-ration and annual rates of salary increases are as follows:

Age

Annual Rates ofSelect Withdrawal Ultimate Withdrawal*

1st Year 2nd Year 3rd YearPrior to Eligibility

for BenefitAfter Eligibility

for BenefitState Local State Local State Local State Local State Local

25 28.90% 32.15% 13.53% 15.12% 9.52% 12.19% 4.69% 6.31% — —30 28.90 31.07 13.53 14.67 9.52 11.10 3.82 6.11 — 0.03%35 20.91 26.81 10.83 11.74 7.99 8.28 2.86 3.80 0.05% 0.0440 17.32 25.64 8.86 10.52 6.37 7.62 1.80 2.77 0.05 0.0645 16.33 24.81 8.26 10.08 5.79 7.14 1.22 2.46 0.24 0.1950 16.33 22.71 7.65 9.58 5.21 6.60 0.90 1.85 1.10 0.7555 16.33 22.37 7.65 9.40 5.21 6.26 0.88 1.52 1.50 0.90

*The rates of withdrawal prior to eligibility for a benefit assumes a refund of contributions.The rates assumedfor members withdrawing with a benefit is the sum of the rates of withdrawal after eligibility and those priorto eligibility.




SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS, Continued

Annual Rates of

Age

Service Retirement

Salary Increases

State LocalFY2012 to

FY2021FY2022 andthereafter

25 4.40% 5.40%

30 4.15 5.15

35 3.90 4.90

40 3.65 4.65

45 3.40 4.40

50 3.15 4.15

55 17.50% 11.70% 2.90 3.90

60 9.00 7.80 2.65 3.65

65 18.00 16.54 2.15 3.15

69 15.00 11.55 2.15 3.15

** RP-2000 Employee Preretirement Mortality Table for male and female active participants. For State,mortality tables are set back 3 years for males and 5 years for females. For Employees of Local employ-ers, mortality tables are set back 2 years for males and 7 years for females. In addition, the tables pro-vide for future improvements in mortality from the base year of 2012 using a generational approachbased on Projection Scale AA. Rates shown above are unadjusted for Projection Scale AA.

Age

Annual Rates of

Ordinary Death** Accidental Death Ordinary DisabilityAccidentalDisability

State Local

State Local State Local State LocalMale Female Male Female

25 0.04% 0.02% 0.04% 0.02% 0.001% 0.001% 0.01% — 0.001% 0.002%

30 0.04 0.02 0.04 0.02 0.001 0.001 0.10 0.07% 0.003 0.004

35 0.06 0.03 0.06 0.02 0.001 0.001 0.24 0.22 0.009 0.004

40 0.09 0.05 0.10 0.04 0.001 0.001 0.34 0.30 0.017 0.009

45 0.12 0.07 0.13 0.06 0.001 0.001 0.51 0.36 0.019 0.013

50 0.17 0.11 0.19 0.09 0.001 0.001 0.58 0.51 0.029 0.016

55 0.25 0.17 0.26 0.14 0.001 0.001 0.70 0.69 0.039 0.022

60 0.36 0.25 0.40 0.21 0.001 0.001 1.23 0.89 0.041 0.025

65 0.59 0.39 0.65 0.33 0.001 0.001 1.49 1.10 0.061 0.027

69 0.81 0.54 0.86 0.47 0.001 0.001 1.77 1.31 0.062 0.029





Marriage: Husbands are assumed to be 3 years older than wives. Among the active population, 100% ofparticipants are assumed to be married.

Valuation Method: Projected Unit Credit Method. This method essentially funds the System’s benefitsaccrued to the valuation date. Experience gains or losses are recognized in future accrued liability contri-butions. In accordance with Chapter 78, P.L. 2011, beginning with the July 1, 2010 actuarial valuation, theaccrued liability contribution shall be computed so that if the contribution is paid annually in level dollars,it will amortize the unfunded accrued liability over an open 30 year period. Beginning with the July 1, 2019actuarial valuation, the accrued liability contribution shall be computed so that if the contribution is paidannually in level dollars it will amortize the unfunded accrued liability over a closed 30 year period (i.e., foreach subsequent actuarial valuation, the amortization period shall decrease by one year). Beginning withthe July 1, 2029 actuarial valuation when the remaining amortization period reaches 20 years, anyincrease or decrease in the unfunded accrued liability as a result of actuarial losses or gains for subse-quent valuation years shall serve to increase or decrease, respectively, the amortization period for theunfunded accrued liability, unless an increase in the amortization period will cause it to exceed 20 years.

Service Retirements Disability RetirementsAge Men Women Age Men Women55 0.32% 0.24% 35 2.26% 0.75%60 0.60 0.44 40 2.26 0.7565 1.13 0.86 45 2.26 0.7570 1.98 1.49 50 2.51 1.0675 3.39 2.55 55 3.16 1.5580 5.79 4.15 60 3.80 2.0885 9.98 6.95 65 4.50 2.66

Prosecutors Part (Chapter 366, P.L. 2001): This legislation introduced special retirement eligibility for cer-tain benefits. The valuation used the following annual rates of service retirement:

Age

Annual Rate of RetirementLess Than 20 Years

20 Years 21 to 24 Years

25 or More Years

State Local State Local

40 0.00% 0.00% 2.50% 0.00% 23.10% 15.40%

45 0.00 0.00 2.50 0.00 23.10 15.40

50 0.00 0.00 3.75 0.00 23.10 15.40

55 2.59 3.06 5.00 0.00 26.22 17.48

60 2.63 3.06 5.00 0.00 34.17 22.78

65 2.63 3.06 37.50 0.00 100.00 100.00

69 2.63 3.06 37.50 0.00 100.00 100.00

Deaths After Retirement: The RP-2000 Combined Healthy Male and Female Mortality Tables (set back1 year for males and females) for service retirement and beneficiaries of former members. The RP-2000Disabled Mortality Tables (set back 3 years for males and set back 1 year for females) are used to valuedisabled retirees. In addition, the tables for service retirement and beneficiaries of former members pro-vide for future improvements in mortality from the base year of 2012 using a generational approach basedon Projection Scale AA. Illustrative rates of mortality unadjusted for Projection Scale AA are shown below:





If an increase in the amortization period as a result of actuarial losses for a valuation year would exceed 20years, the accrued liability contribution shall be computed for the valuation year using a 20 year amortizationperiod.

Chapter 78, P.L. 2011 increases the member contribution rate from 5.5% to 6.5% of compensation with theincrease effective October 2011. Further, beginning July 2012, the member contribution rate will increase by1/7th of 1% each year until a 7.5% member contribution rate is reached in July 2018. Based on discussionswith the Division of Pensions and Benefits, member contributions in excess of 5.5% of compensation shall notreduce the employers’ normal cost contributions.

Expenses: Payable from excess investment return.

Asset Valuation Method: A five year average of market values with write-up was used. This method takes intoaccount appreciation (depreciation) in investments in order to smooth asset values by averaging the excess ofthe actual over the expected income, on a market value basis, over a five-year period.




SCHEDULE OF RETIRED MEMBERS AND BENEFICIARIESADDED TO AND REMOVED FROM ROLLS

STATE

LOCAL EMPLOYERS

TOTAL SYSTEM

* These values include beneficiaries in receipt but exclude deferred vested terminations.

** The benefit amounts shown are the annualized benefits as of the valuation date and are not the actual benefits paid during the fiscal year.

ValuationDate

Added to Rolls Removed From Rolls Rolls at End of Year% Increasein AnnualAllowance

AverageAnnual

AllowanceNumberAnnual

Allowance NumberAnnual

Allowance*

NumberAnnual**

Allowance

7/1/12 3,192 $92,356,665 1,734 $29,433,960 49,048 $1,197,305,307 5.66% $24,411

7/1/11 4,365 135,383,063 1,782 28,241,754 47,590 1,133,192,150 11.40 23,812

7/1/10 2,628 74,214,851 1,456 22,991,138 45,007 1,017,211,463 5.32 22,601

7/1/09 3,691 114,125,640 1,587 23,763,321 43,835 965,850,034 13.38 22,034

7/1/08 2,376 59,667,932 1,282 18,580,725 41,731 851,858,427 6.45 20,413

7/1/07 3,099 75,984,568 1,586 20,983,838 40,637 800,218,401 9.98 19,692

ValuationDate


AverageAnnual



Allowance*

NumberAnnual**

Allowance

7/1/12 7,334 $137,596,316 4,284 $49,626,477 103,545 $1,631,782,901 5.83% $15,759

7/1/11 9,296 195,153,024 4,529 48,064,677 100,495 1,541,951,837 11.54 15,344

7/1/10 6,182 115,153,073 3,805 42,585,361 95,728 1,382,400,685 5.56 14,441

7/1/09 5,826 101,661,331 3,761 39,550,280 93,351 1,309,554,538 7.86 14,028

7/1/08 6,077 101,843,543 3,247 33,727,154 91,286 1,214,076,086 7.35 13,300

7/1/07 6,583 105,522,066 3,779 36,462,528 88,456 1,130,911,550 9.04 12,785

ValuationDate


AverageAnnual



Allowance*

NumberAnnual**

Allowance

7/1/12 10,526 $229,952,981 6,018 $79,060,437 152,593 $2,829,088,208 5.75% $18,540

7/1/11 13,661 330,536,087 6,311 76,306,431 148,085 2,675,143,987 11.48 18,065

7/1/10 8,810 189,367,924 5,261 65,576,499 140,735 2,399,612,148 5.46 17,051

7/1/09 9,517 215,786,971 5,348 63,313,601 137,186 2,275,404,572 10.14 16,586

7/1/08 8,453 161,511,475 4,529 52,307,879 133,017 2,065,934,513 6.98 15,531

7/1/07 9,682 181,506,634 5,365 57,446,366 129,093 1,931,129,951 9.43 14,959




SCHEDULE OF ACTIVE MEMBER VALUATION DATA

STATE

Valuation Date

Number of Active

ContributingMembers

AnnualCompensation

AverageCompensation

% Increase in Average

Compensation

7/1/12 75,355 $4,570,958,470 $60,659 1.48%7/1/11 77,109 4,608,926,826 59,772 6.447/1/10 81,288 4,564,850,886 56,157 0.867/1/09 83,102 4,627,092,235 55,680 2.917/1/08 85,182 4,609,019,779 54,108 4.177/1/07 85,382 4,434,933,181 51,942 5.59

LOCAL EMPLOYERS

Valuation Date

Number of Active

ContributingMembers

AnnualCompensation

AverageCompensation


Compensation

7/1/12 164,005 $6,862,133,165 $41,841 2.74%7/1/11 171,881 7,000,115,900 40,727 2.987/1/10 187,526 7,416,503,897 39,549 3.377/1/09 192,582 7,368,354,906 38,261 2.237/1/08 192,566 7,206,781,046 37,425 3.337/1/07 192,819 6,983,534,635 36,218 3.36

TOTAL SYSTEM

Valuation Date

Number of Active

ContributingMembers

AnnualCompensation

AverageCompensation


Compensation

7/1/12 239,360 $11,433,091,635 $47,765 2.45%7/1/11 248,990 11,609,042,726 46,625 4.617/1/10 268,814 11,981,354,783 44,571 2.437/1/09 275,684 11,995,447,141 43,512 2.287/1/08 277,748 11,815,800,825 42,541 3.657/1/07 278,201 11,418,467,816 41,044 4.08




SOLVENCY TEST

STATE

ValuationDate

Accrued Liabilities for

Net Assets Available for

Benefits*

Percentage of Accrued Liabilities Covered by Net Assets Available

(1)Aggregate Member

Contributions

(2)Current Retirees& Beneficiaries

(3)Active & Inactive

Members (1) (2) (3)7/1/12 $4,562,712,648 $10,849,987,028 $3,970,884,963 $9,774,698,097 100.00% 48.04% 0.00%

7/1/11 4,295,868,689 10,055,639,293 3,939,321,039 10,062,648,618 100.00 57.35 0.00

7/1/10 4,218,496,038 8,891,761,902 4,318,920,081 10,253,254,901 100.00 67.87 0.00

7/1/09 3,917,520,867 9,576,933,235 5,452,740,477 10,713,340,747 100.00 70.96 0.00

7/1/08 3,772,347,015 8,123,305,516 5,177,050,149 11,252,321,606 100.00 92.08 0.00

7/1/07 3,460,228,558 7,660,455,350 4,908,191,693 11,228,946,178 100.00 100.00 2.21

ValuationDate



Benefits*


(1)Aggregate Member

Contributions



Members (1) (2) (3)7/1/12 $6,614,992,298 $14,150,003,241 $5,244,042,802 $19,376,646,934 100.00% 90.19% 0.00%

7/1/11 6,244,282,760 13,077,334,135 5,357,478,680 18,997,383,783 100.00 97.52 0.00

7/1/10 6,130,352,551 11,541,556,714 6,246,748,779 18,481,952,370 100.00 100.00 12.97

7/1/09 5,692,517,632 12,298,679,145 7,532,011,799 18,165,835,669 100.00 100.00 2.32

7/1/08 5,242,130,640 11,030,079,191 6,900,974,142 18,251,200,411 100.00 100.00 28.68

7/1/07 4,847,097,344 10,290,632,227 6,626,485,022 17,704,248,133 100.00 100.00 38.73

LOCAL EMPLOYERS

ValuationDate



Benefits*


(1)Aggregate Member

Contributions



Members (1) (2) (3)7/1/12 $11,177,704,946 $24,999,990,269 $9,214,927,765 $29,151,345,031 100.00% 71.89% 0.00%

7/1/11 10,540,151,449 23,132,973,428 9,296,799,719 29,060,032,401 100.00 80.06 0.00

7/1/10 10,348,848,589 20,433,318,616 10,565,668,860 28,735,207,271 100.00 89.98 0.00

7/1/09 9,610,038,499 21,875,612,380 12,984,752,276 28,879,176,416 100.00 88.09 0.00

7/1/08 9,014,477,655 19,153,384,707 12,078,024,291 29,503,522,017 100.00 100.00 11.06

7/1/07 8,307,325,902 17,951,087,577 11,534,676,715 28,933,194,311 100.00 100.00 23.19

TOTAL SYSTEM

* Actuarial Value including receivable amounts but excluding postretirement medical fund assets.




ANALYSIS OF PAST FINANCIAL EXPERIENCE RECONCILIATION OF EMPLOYER CONTRIBUTION RATES

STATEValuation Year

July 1,2012

July 1,2011

July 1,2010

July 1,2009

July 1,2008

July 1,2007

Prior Year Contribution Rate 20.06%ø 19.15%ø 16.28%ø 12.59%ø 11.42%ø 10.81%ø

Net Change Due to:

Current New Entrants 0.02 0.00 0.04 0.09 0.07 0.09

Excess Salary Increases (0.14) 0.24 (0.22) (0.05) 0.07 0.25

Assumption/Method Changes 0.80 (1.28) 0.00 1.40 0.00 0.00

COLA Increases and Phase-In 0.02 (0.13) (0.07) 0.17 0.01 0.12

Active Experience 0.07 0.27 0.15 0.02 0.02 0.05

Other Experience 0.19 (0.16) 0.23 0.14 0.08 0.09

Investment Loss/(Gain) 0.67 0.48 0.65 0.90 0.36 0.14

Chapter 133 Benefit Improvements** 0.00 0.00 0.00 0.00 0.00 0.00

Net Effect of Chapter 133* 0.00 0.00 0.00 0.00 0.00 0.00

Chapter 366 Benefit Improvement (0.01) 0.00 0.01 0.00 (0.01) 0.00

Net Effect of Chapter 366 0.01 0.01 0.03 0.00 0.00 0.02

Appropriation Actøø 1.28 1.48 1.03 0.78 0.60 0.35Chapter 21, P.L. 2008 N/A N/A N/A 0.24 N/A N/AChapter 103, P.L. 2007 N/A N/A N/A N/A (0.03) (0.50)Chapter 78, P.L. 2011 N/A N/A 1.02 N/A N/A N/AActual Pension Contribution Rate:

• Prior to reflecting Chapter 1, P.L. 2010 22.97%ø 20.06%ø 19.15%ø 16.30%ø 12.59%ø 11.42%ø

• After reflecting Chapter 1, P.L. 2010 9.85%ø 5.73%ø 2.74%ø N/A N/A N/A




ANALYSIS OF PAST FINANCIAL EXPERIENCE RECONCILIATION OF EMPLOYER CONTRIBUTION RATES

* The additional annual employer normal contribution for the increase in benefits is funded by assetsaccumulated in the Benefit Enhancement Fund.

** Includes the effect of additional cost due to Chapter 353, P.L. 2000.

ø Excludes contribution rates payable to the Non-Contributing Group Insurance Premium Fund. ForState, the contribution rates are 0.73% for 2012, 0.74% for 2011, 0.71% for 2010, 0.64% for 2009,0.62% for 2008 and 0.76% for 2007. For Local, the contribution rates are 0.18% for 2012, 0.63% for2011, 0.67% for 2010, 0.78% for 2009, 1.09% for 2008 and 0.89% for 2007.

øø Net change due to Appropriation Act for July 1, 2010 includes 0.03% change due to the Fiscal Year2010 Appropriation Act and 1.00% change due to the Fiscal Year 2011 Appropriation Act. Net changefor July 1, 2011 is due to the provisions of Chapter 1, P.L. 2010.

# to the reallocation of State paid Local obligations due to Chapter 133, P.L. 2001 and Chapter 366, P.L.2001.

## After the reallocation of State paid Local obligations due to Chapter 133, P.L. 2001 and Chapter 366,P.L. 2001.

LOCAL EMPLOYERSValuation Year

July 1,2012

July 1,2011

July 1,2010

July 1,2009

July 1,2008

July 1,2007

Prior Year Contribution Rate# 11.29%ø 11.32%ø 11.12%ø 8.67%ø 7.99%ø 7.94%ø

Net Change Due to:

Current New Entrants 0.02 0.03 0.08 0.16 0.11 0.11

Excess Salary Increases (0.02) (0.12) (0.08) (0.10) 0.05 0.07


COLA Increases and Phase-In 0.02 (0.11) (0.05) 0.14 0.01 0.10

Active Experience 0.04 0.26 0.10 (0.05) (0.01) (0.03)

Other Experience 0.13 0.21 (0.04) 0.07 0.11 0.02


Chapter 133 Benefit Improvements** 0.00 (0.13) 0.00 0.03 (0.01) 0.00

Net Effect of Chapter 133* (0.68) (0.69) (0.81) (0.81) (0.78) (0.79)

Chapter 366 Benefit Improvement (0.01) (0.01) 0.00 0.01 (0.01) 0.00

Net Effect of Chapter 366 (0.02) (0.02) (0.04) (0.04) (0.03) (0.04)

Chapter 108, P.L. 2003 0.00 0.00 0.00 0.00 0.00 0.08

Chapter 103, P.L. 2007 0.00 0.00 0.00 0.00 (0.02) (0.50)

Chapter 78, P.L. 2011 N/A N/A (0.58) N/A N/A N/A

Actual Contribution Rate## 11.98%ø 10.58%ø 10.47%ø 10.27%ø 7.86%ø 7.16%ø


1. DEFINITIONS

Final Compensation (FC): Average annual com-pensation for the three years of creditable serviceimmediately preceding retirement or the highestthree fiscal years of membership service. EffectiveJune 30, 1996, Chapter 113, P.L. 1997 providedthat the amount of compensation used for employ-er and member contributions and benefits underthe program cannot exceed the compensation limi-tation of Section 401(a)(17) of the Internal RevenueCode. Chapter 103, P.L. 2007 provides that forClass D, Class E, Class F and Class G members,the amount of compensation used for employer andmember contributions and benefits under theSystem cannot exceed the annual maximum wagecontribution base for Social Security, pursuant tothe Federal Insurance Contributions Act. Chapter1, P.L. 2010 provides that for Class F and Class Gmembers FC is the average annual compensationfor the five years of creditable service immediatelypreceding retirement or the highest five fiscal yearsof membership service.

Accumulated Deductions: Sum of all requiredamounts deducted from the compensation of amember or contributed by him.

Class B Member: Any member who was hiredprior to July 1, 2007.

Class D Member: Any member who was hired onor after July 1, 2007 but prior to November 2, 2008.

Class E Member: Any member who was hiredafter November 1, 2008 but prior to May 22, 2010.

Class F Member: Any member who was hired onor after May 22, 2010 but prior to June 28, 2011.

Class G Member: Any member who was hired onor after June 28, 2011.

2. BENEFITS*

Service Retirement: Eligible at age 60. Benefitequals a member annuity plus an employer pen-sion, which together, equal 1/55th of FC for eachyear of service. Chapter 89, P.L. 2008 changed theeligibility age to age 62 for Class E members,Chapter 1, P.L. 2010 changed the eligibility age toage 62 for Class F members and changed thebasic accrual rate from 1/55th to 1/60th of FC for

each year of service for Class F and Class G mem-bers and Chapter 78, P.L. 2011 changed the eligi-bility age to age 65 for Class G members.

Ordinary Disability Retirement: Eligible after 10years of service. Benefit equals a member annuityplus an employer pension which, together, equal1.64% of FC for each year of service; minimumbenefit of 43.6% of FC. Class F and Class G mem-bers are not eligible for an Ordinary DisabilityRetirement benefit in accordance with Chapter 3,P.L. 2010.

Accidental Disability: Eligible upon total and per-manent disability prior to age 65 as a result of aduty injury. Benefit equals a member annuity plusan employer pension which, together, equal 72.7%of contributory compensation at the date of injury.Class F and Class G members are not eligible foran Accidental Disability Retirement benefit inaccordance with Chapter 3, P.L. 2010.

Lump Sum Withdrawal: Eligible upon service ter-mination prior to age 60 (age 62 for Class E andClass F members and age 65 for Class G mem-bers) and prior to 10 years of service. Benefitequals refund of accumulated deductions plus, ifthe member has completed three years of service,interest allowed thereon.

Vested Retirement: Eligible after 10 years of serv-ice. Benefit equals the lump sum benefit describedabove or a deferred retirement benefit, commenc-ing at age 60 (age 62 for Class E and Class Fmembers and age 65 for Class G members), equalto the service retirement benefit based on serviceand FC at date of termination.

Early Retirement: Eligible after 25 years of service(30 years of service for Class G members). Benefitequals the lump sum benefit described above orthe vested benefit reduced by 1/4 percent for eachmonth the retirement date precedes age 55.Chapter 103, P.L. 2007 provides that for Class Dmembers, the reduction shall be 1/12 percent foreach month (up to 60 months) the retirement dateprecedes age 60 plus 1/4 percent for each monththe retirement date precedes age 55. Chapter 89,P.L. 2008 and Chapter 1, P.L. 2010 provides that forClass E and Class F members, the reduction shall



BRIEF SUMMARY OF THE BENEFIT AND CONTRIBUTION PROVISIONSAS INTERPRETED FOR VALUATION PURPOSES

* Special benefits for veterans, law enforcement officers, legislators, prosecutors, and workers’ compensation judges aresummarized at the end of this section.


be 1/12 percent for each month (up to 84 months)the retirement date precedes age 62 plus 1/4 per-cent for each month the retirement date precedesage 55. Chapter 78, P.L. 2011 provides that forClass G members, the reduction shall be 1/4 per-cent for each month the retirement date precedesage 65.

Ordinary Death (Insured):

BEFORE RETIREMENT

Eligible if active. Benefit equals accumulated deduc-tions with interest plus an amount equal to 1-1/2times contributory compensation at date of death.

AFTER RETIREMENT

Before Age 60:Eligible if disabled or vested terminated. Benefitequals 1 1/2 times last contributory compensationif disabled, accumulated deductions only if vestedterminated.

After Age 60 or Early Retirement:Eligible after early retirement or after attainment ofage 60 for other types of retirement (if not disabled,10 years of service credit required on membersenrolling after July 1, 1971). Benefit equals 3/16 oflast contributory compensation.

Voluntary Death Benefit: An additional, employ-ee-paid, death benefit is also available through thepurchase of group insurance with an outside carri-er.

Accidental Death: Eligible upon death resulting dur-ing performance of duty. Benefit varies as follows:

Widow(er) - 50% of contributory compensation paidas pension.

Child(ren) - No spouse - 20% (1 child), 35% (2 chil-dren), 50% (3 or more children) of contributorycompensation pension paid as pension to age 18or life if disabled.

Surviving dependent parent - No spouse or child -25% (1 parent) or 40% (2 parents) of contributorycompensation paid as pension.

No relation above - Accumulated deductions paidto other beneficiary or estate.

In addition, the employer-paid lump sum ordinarydeath benefit is paid.

Optional Benefits: Various forms of payment ofequivalent actuarial value are available to retirees.

Special Benefits:

VETERANS

Service Retirement:Eligible if member on January 2, 1955, attains age60, completes 20 years of service. Benefit equals54.5% of final contributory compensation (veteranmembers after January 2, 1955 must attain age 55with 25 years of service or age 60 with 20 years ofservice.

Chapter 220 Benefit:Eligible if age 55 and completes 35 years of serv-ice. Benefit equals 1/55th of the compensation forthe 12-month period of membership that providesthe largest possible benefit multiplied by the mem-ber’s total years of service.

LAW ENFORCEMENT

Service Retirement:Eligible at age 55 after 20 years of service. Benefitequals a member annuity plus an employer pen-sion which, together, equal 2% of final contributorycompensation for each of the first 25 years of serv-ice plus 1% of such compensation for non-contrib-utory service or service over 25 years plus 1-2/3%for non-law enforcement service.

Chapter 4, P.L. 2001 Special Retirement:After completion of 25 years of service, an addi-tional retirement benefit equal to 5% of final con-tributory pay is added to the above service relatedretirement benefit. There is a maximum total ben-efit of 70% of final contributory pay.

Ordinary Disability:Eligible after 5 years of service. Benefit is the sameas for regular members.

Death After Retirement:Eligible upon death after an accidental disabilityretirement. Benefit is the same as for a regularmember with a $5,000 minimum.

LEGISLATORS

Service Retirement:Eligible at age 60 and termination of all public serv-ice. Benefit is equal to a member annuity plus anemployer pension which, together, equal 3% of finalcontributory compensation for each year of service toa maximum of 2/3 of final compensation.

Vested Retirement:Eligible after 8 years of legislative service. Benefit



BRIEF SUMMARY OF THE BENEFIT AND CONTRIBUTION PROVISIONS, Continued


is a service retirement benefit deferred to age 60or, alternatively, a lump sum equal to his accumu-lated deductions.

PROSECUTORS PART (Chapter 366, P.L. 2001)

Service Retirement:Eligibility means age 55 or 20 years of creditedservice. Mandatory retirement at age 70. Benefitis an annual retirement allowance equal to a mem-ber annuity plus an employer pension, whichtogether equals the greater of:

(i) 1/60th of FC for each year service; or

(ii) 2% of FC multiplied by years of service up to30 plus 1% of FC multiplied by years of serviceover 30; or

(iii) 50% of final contributory compensation if themember has 20 or more years of service.

Chapter 366 also requires that, in addition to tothe 50% of final contributory compensationbenefit, any member as of January 7, 2002who will have 20 or more years of service andis required to retire upon attaining age 70, shallreceive an additional benefit equal to 3% offinal contributory compensation for each year ofservice over 20 years but not over 25 years.

Special Retirement:After completion of 25 years of service. The annu-al retirement benefit is equal to a member annuityplus an employer pension which together equal65% of final contributory compensation plus 1% offinal contributory compensation for each year ofservice over 25. There is a maximum benefit of70% of final contributory compensation.

Vested Termination:Eligible upon termination of service prior to age 55and after 10 years of Service (but less than 20years). The benefit is a deferred retirement benefit,commencing at age 55, equal to a member annuityplus an employer pension which together provide aretirement allowance equal to 2% of final contribu-tory compensation multiplied of service up to 30plus 1% of final contributory compensation multi-plied by years of service.

Death Benefits:Ordinary Death Benefit — Lump Sum

After retirement but prior to age 55, the benefit is asfollows:

(i) For death while a Disabled Retiree the benefit

is equal to 1-1/2 times compensation.

(ii) For death while a Deferred Retiree the benefitis equal to his Accumulated Deductions.

(iii) For death while a Retiree who has completed20 years of service, the benefit is equal to 1/2times final contributory compensation.

After retirement and after age 55, the benefitpayable is equal to ½ times final contributory com-pensation.

Chapter 1, P.L. 2010 closes the Prosecutors Part ofthe System to new members enrolled on or afterMay 22, 2010.

WORKERS’ COMPENSATION JUDGES PART (Chapter 259, P.L. 2001)

Service Retirement:A. Mandatory retirement at age 70. Voluntary

retirement prior to age 70 as follows:

a. Age 70 and 10 years of service as a judge ofcompensation;

b. Age 65 and 15 years of service as a judge ofcompensation; or

c. Age 60 and 20 years of service as a judge ofcompensation.

Benefit is an annual retirement allowanceequal to the greater of 75% of final salary orthe regular service retirement benefit above.

B. Age 65 while serving as a judge of compensa-tion, 5 consecutive years of service as a judgeof compensation and 15 years in the aggregateof public service; or

Age 60 while serving as a judge of compensa-tion, 5 consecutive years of service as a judgeof compensation and 20 years in the aggregateof public service.

Benefit is an annual allowance equal to thegreater of 50% of final salary or the regularservice retirement benefit above.

C. Age 60 while serving as a judge of compensa-tion, 5 consecutive years as a judge of com-pensation and 15 years in the aggregate ofpublic service. Benefit is an annual retirementallowance equal to the greater of 2% of finalsalary for each year of public service up to 25years plus 1% of final salary for each year inexcess of 25 years or the regular service retire-ment benefit above.





D. Age 60 while serving as a judge of compensa-tion. Benefit is an annual retirement allowanceequal to the greater of 2% of final salary foreach year of service as a judge of compensa-tion up to 25 years plus 1% for each year inexcess of 25 years or the regular service retire-ment benefit above.

Early Retirement:Prior to age 60 while serving as a judge ofcompensation, 5 consecutive years of serviceas a judge of compensation and 25 or moreyears in the aggregate of public service. Benefitis an annual retirement allowance equal to 2%of final salary for each year of public service upto 25 years plus 1% of final salary for each yearof public service in excess of 25 years, actuar-ially reduced for commencement prior to age60.

Vested Termination:Termination of service prior to age 60, with 5consecutive years of service as a judge ofcompensation and 10 years in the aggregate ofpublic service. Benefit is a refund of accumulat-ed deductions, or a deferred life annuity begin-ning at age 60 equal to 2% of final salary foreach year of public service up to 25 years, plus1% of service in excess of 25 years.

Death Benefits (Insured):

Before Retirement:Death of an active member of the plan. Benefitis equal to

a. Lump sum payment equal to 1-1/2 times finalsalary, plus

b. Spousal life annuity of 25% of final salary plus10% (15%) to one (two or more) surviving chil-dren payable until spouse’s death or remarriage.If there is no surviving spouse, or upon death orremarriage, a total of 15% (20%, 30%) of finalsalary payable to one (two, three or more)dependent child (children). If there is no survivingspouse (or dependent children), 20% or 30% offinal salary to one or two dependent parents.

After Retirement:Death of a retired member of the plan. Benefit isequal to a lump sum of 25% of final salary for amember retired under normal, early retirementor vested termination. If a member were receiv-ing a disability benefit, a lump sum 1-1/2 times

final salary if death occurred before the memberattained age 60 and 1/4 times final salary ifdeath occurred after age 60.

Chapter 92, P.L. 2007 closes the WorkersCompensation Judges Part of the System to newmembers enrolled after June 8, 2007.

3. CONTRIBUTIONS

By Members:

Members enrolling in the retirement system on orafter July 1, 1994 will contribute 5% of compensa-tion. Members enrolled prior to July 1, 1994 willcontribute 5% of compensation to the retirementsystem effective July 1, 1995 unless they previous-ly had contributed less than 6% in which case theywill contribute 4% of compensation beginning July1, 1995 and 5% of compensation beginning July 1,1996. Chapter 103, P.L. 2007 increases the contri-bution rate to 5.5% of compensation effective, gen-erally, July 1, 2007 for State employees and July 1,2008 for Local employees. Chapter 78, P.L. 2011increases the contribution rate from 5.5% to 6.5%of compensation with the increase effectiveOctober 2011. Further, beginning July 2012, themember contribution rate will increase by 1/7th of1% each July until a 7.5% member contribution rateis reached in July 2018.

A 7.50% member contribution rate for memberswho are eligible to retire under the Prosecutors Partof the Retirement System as provided by Chapter366, P.L. 2001 was used prior to July 1, 2008.Effective July 1, 2008 the member contribution ratewas increased to 8.50%. Chapter 78, P.L. 2011increases the contribution rate from 8.5% to 10.0%of compensation with the increase effectiveOctober 2011.

By Employers:

NORMAL CONTRIBUTION

The State and Local employers pay annually a nor-mal contribution to the retirement System. Thiscontribution is determined each year on the basisof the annual valuation and represents the value ofthe benefits to be earned in the year following thevaluation date. The normal contributions for activemembers’ COLA are being phased in. Chapter 78,P.L. 2011 suspended future COLAs for current andfuture retirees and beneficiaries until reactivated aspermitted by law.





In accordance with the provisions of Chapter 79, P.L.1960, the monies appropriated for payment of thenon-contributory life insurance coverage shall be heldseparate from the retirement System monies.

In accordance with the provisions of Chapter 133,P.L. 2001, the Benefit Enhancement Fund (BEF)was established to fund the additional annualemployer normal contribution due to the law’sincreased benefits. (Chapter 353, P.L. 2001extended this coverage to this law’s additionalannual employer normal contribution.) If theassets in the BEF are insufficient to cover the nor-mal contribution for the increased benefits for avaluation period, the State will pay such amountfor both the State and local employers.

In accordance with the provisions of Chapter 259,P.L. 2001, the additional normal contributions forincreased benefits to judges of compensation for avaluation period will be funded by transfers from theSecond Injury Fund.

Chapter 19, P.L. 2009 provides that the StateTreasurer will reduce for Local employers the nor-mal contribution to 50% of the amount certified forfiscal year 2009. This unfunded liability will be paidby the Local employers in level annual paymentsover a period of 15 years with the first payment duein the fiscal year ending June 30, 2012. Theunfunded liability will be adjusted by the rate ofreturn on the actuarial value of assets. The legisla-tion also provides that a Local employer may pay100% of the recommended contribution for fiscalyear 2009. Local employers who were eligible butdid not elect to take advantage of Chapter 19, P.L.2009 were permitted to elect to defer 50% of the2010 fiscal year required contribution with the firstpayment due in the fiscal year ending June 30,2012.

ACCRUED LIABILITY CONTRIBUTIONS

The State and Local employers pay contributionsto cover any unfunded accrued liability. Anunfunded accrued liability was established foractive life COLAs. The amortization periods forfunding these liabilities were set initially at 40years. Experience gains or losses for the 10 val-uation years following the March 31, 1992 valua-tion will increase or decrease the unfunded

accrued liability. Thereafter, actuarial gains orlosses will increase or decrease the amortizationperiod unless an increase will cause it to exceed30 years. Chapter 78, P.L. 2011 suspended futureCOLAs for current and future retirees and benefici-aries until reactivated as permitted by law andchanged the methodology used to amortize theunfunded accrued liability. Beginning with the July1, 2010 actuarial valuation, the accrued liabilitycontribution shall be computed so that if the contri-bution is paid annually in level dollars, it will amor-tize the unfunded accrued liability over an open 30year period. Beginning with the July 1, 2019 actu-arial valuation, the accrued liability contributionshall be computed so that if the contribution is paidannually in level dollars it will amortize the unfund-ed accrued liability over a closed 30 year period(i.e., for each subsequent actuarial valuation, theamortization period shall decrease by one year).Beginning with the July 1, 2029 actuarial valuationwhen the remaining amortization period reaches20 years, any increase or decrease in the unfund-ed accrued liability as a result of actuarial losses orgains for subsequent valuation years shall serve toincrease or decrease, respectively, the amortiza-tion period for the unfunded accrued liability, unlessan increase in the amortization period will cause itto exceed 20 years. If an increase in the amortiza-tion period as a result of actuarial losses for a val-uation year would exceed 20 years, the accruedliability contribution shall be computed for the valu-ation year using a 20 year amortization period.

Chapter 366, P.L. 2001 requires the State be liablefor any increase in pension costs to a county thatresults from the enrollment of prosecutors in theProsecutors Part. Any increase in the unfundedaccrued liability in the Retirement System arisingfrom the benefits established for the ProsecutorsPart are to be amortized over a period of 30 yearsin the manner provided for other such liability in theRetirement System.

In accordance with the provisions of Chapter 259,








P.L. 2001, the additional accrued liability contribu-tion for increased benefits to judges of compensa-tion for a valuation period will be funded bytransfers from the Second Injury Fund.

Chapter 19, P.L. 2009 provides that the StateTreasurer will reduce for Local employers theaccrued liability contribution to 50% of the amountcertified for fiscal year 2009. This unfunded liabilitywill be paid by the Local employers in level annualpayments over a period of 15 years with the firstpayment due in the fiscal year ending June 30,2012. The unfunded liability will be adjusted by therate of return on the actuarial value of assets. Thelegislation also provides that a Local employer maypay 100% of the recommended contribution for fis-cal year 2009. Local employers who were eligiblebut did not elect to defer 50% of the 2009 fiscal yearcontribution were permitted to elect to defer 50% ofthe 2010 fiscal year contribution with the first pay-ment due in the fiscal year ending June 30, 2012.


1550 Liberty Ridge DriveSuite 200Wayne, PA 19087-5572Tel +1 610 687.5644Fax +1 610.687.4236www.milliman.com

October 8, 2013

Board of TrusteesTeachers' Pension and Annuity Fund

of New Jersey



This letter constitutes the actuary’s certification letter for the Comprehensive Annual FinancialReport (CAFR) of the Teachers’ Pension and Annuity Fund of New Jersey (TPAF) for the fiscal yearending June 30, 2013. It reflects the results of the June 30, 2012 Annual Actuarial Valuation (datedFebruary 15, 2013) of TPAF. Please refer to the entire Actuarial Valuation report for more informa-tion.

The information provided is based on Governmental Accounting Standards Board (GASB)Statement No. 25. This information does not reflect new GASB Statement No. 67 effective for fis-cal year 2014.

This valuation reflects changes to two key actuarial assumptions: 1) a decrease in the investmentreturn assumption from 7.95% per year to 7.9% per year, and 2) a change to the salary increaseassumption to better reflect recent experience and expected longterm trends.

The funding requirements of the plan, as modified by Chapter 1, P.L. 2010, and Chapter 78, P.L.2011, is to have the State phase-in to paying 100% of the statutorily required contribution over a7-year period beginning with fiscal year 2012. For the 2013 fiscal year, the phase-in percentage is28.57% (2/7th). The full statutory contribution is equal to the normal cost of the plan plus a 30-yearlevel dollar amortization of the unfunded pension accrued liability. The maximum amortization peri-od will be reduced by one each year beginning with the 2021 fiscal year, but not less than 20 years(the 2030 fiscal year). The State portion of the normal cost only reflects employee contributions upto 5.5% of pay. The employee contribution rate increased to 6.5% effective October 1, 2012 andincreases by 1/7 of 1% each July 1 thereafter.

Since the 2004 fiscal year, the State has not met the full statutory contribution requirement. Actualcontributions by the State for fiscal year 2013 also did not meet the full statutory contributionrequirements. In accordance with Chapter 1, P.L. 2010, 100% of the statutorily required contribu-tion is not expected to be contributed by the State until fiscal year 2018. The following describesthe allocation of the State contributions appropriated for fiscal years 2013 and 2014.

The State appropriated $647,874,536 for the 2013 fiscal year which represents 28.57% (2/7th) ofthe statutory pension and State ERI-3 contributions plus 100% of the actual non-contributory grouplife insurance claims. For fiscal year 2014, it is our understanding that the State will appropriate42.86% (3/7th) of the statutory pension and State ERI-3 contributions plus an amount to cover100% of the actual non-contributory group life insurance claims, which is estimated to total$1,022,086,910. Please note that ERI contributions are not included in the CAFR in accordance


with GASB accounting. Therefore, the resulting contributions are $647,059,335 (27.75% of theARC) for fiscal year 2013 and $1,020,804,486 (41.51% of the ARC) for fiscal year 2014.

The valuation was based on a set of demographic actuarial assumptions (described in detail in thesection headed “Summary of Actuarial Assumptions and Methods”) which was adopted by theBoard of Trustees as a result of a study of actual experience under the Teachers’ Pension AnnuityFund during the 3-year period ending June 30, 2009 with subsequent modifications to the salaryincrease assumption.

The valuation is also based on a set of economic assumptions as prescribed by the StateTreasurer, specifically an investment return assumption of 7.9%. Based on our most recent analy-sis, this assumption is outside our reasonable range. If the investment return was lowered, theactuarial accrued liability and statutory contributions would increase and the funded ratio woulddecrease. Determining results at an alternative investment return assumption is outside the scopeof our assignment.

The demographic actuarial assumptions and methods used for funding purposes meet the param-eters set forth in GASB Statement No. 25 except with respect to the funding of the contributory andnon-contributory group life benefits. The Annual Required Contribution shown on the attachedexhibit reflects an actuarial determination of the contributory and non-contributory group life bene-fits.

The following supporting schedules in the Actuarial Section were prepared by Milliman:


• Summary of Retired Member Valuation Data (including schedule of retirants and beneficiaries added to and removed from rolls)


• Solvency Test

• Analysis of Financial Experience

• Summary of Principal Plan Provisions

In addition, Milliman prepared the “Schedule of Funding Progress”, the “Schedule of EmployerContributions”, and the “Reconciliation of Net Pension Obligation” in the Financial Section.

Milliman’s work is prepared solely for the internal business use of the State of New Jersey Divisionof Pension and Benefits. To the extent that Milliman's work is not subject to disclosure under appli-cable public records laws, Milliman’s work may not be provided to third parties without Milliman'sprior written consent. Milliman does not intend to benefit or create a legal duty to any third partyrecipient of its work product. Milliman’s consent to release its work product to any third party maybe conditioned on the third party signing a Release, subject to the following exception:

• The System may provide a copy of Milliman’s work, in its entirety, to the System's pro-fessional service advisors who are subject to a duty of confidentiality and who agreeto not use Milliman’s work for any purpose other than to benefit the System.

This report has been prepared exclusively for the State of New Jersey Division of Pensions andBenefits for a specific and limited purpose. Milliman does not intend to benefit and assumes noduty or liability to other parties who receive this work. It is a complex, technical analysis thatassumes a high level of knowledge concerning the State of New Jersey Division of Pensions andBenefits’ operations, and uses the State of New Jersey Division of Pensions and Benefits’ data,which Milliman has not audited. No third party recipient of Milliman's work product should rely uponMilliman's work product. Such recipients should engage qualified professionals for advice appro-priate to their own specific needs.

The consultants who worked on this assignment are pension actuaries. Milliman’s advice is notintended to be a substitute for qualified legal or accounting counsel.


In performing this analysis, we relied, without audit, on census data, plan provisions, asset state-ments and other information (both written and oral) provided by the State of New Jersey Divisionof Pensions and Benefits. We have not audited or verified the census data, asset statements orother information. To the extent any of these are inaccurate or incomplete, the results of our analy-sis may likewise be inaccurate or incomplete.

We performed a limited review of the data used directly in our analysis for reasonableness andconsistency and have not found material defects in the data. If there are material defects in thedata, it is possible that they would be uncovered by a detailed, systematic review and comparisonof the data to search for data values that are questionable or for relationships that are materiallyinconsistent. Such a review was beyond the scope of our assignment.

Future actuarial measurements may differ significantly from the current measurements presentedin this analysis due to actual plan experience deviating from the actuarial assumptions, andchanges in plan provisions, actuarial assumptions, and applicable law. An assessment of thepotential range and cost effect of such differences is beyond the scope of this analysis.

I am a member of the American Academy of Actuaries and meet its Qualification Standard to ren-der this actuarial opinion.


MILLIMAN, INC.

Scott F. Porter, FSA, MAAA





A. Actuarial Assumptions

Interest: 7.90% per annum, compounded annually (as prescribed by the State Treasurer).

Salary Scale: Salary increases vary by years of employment averaging 3.51% for a four year select period(June 30, 2012 — June 30, 2016) averaging 3.86% for a five year select period (June 30, 2016 — June 30,2021) and averaging 4.47% thereafter. Schedule of annual rates are shown below:

Years ofEmployment

Select Period Ending

June 30, 2016 June 30, 2021 Ultimate Period0-8 4.10% 4.50% 5.40%9-12 4.85 5.25 5.9513 4.80 5.20 5.8014 4.35 4.85 5.4515 4.15 4.55 5.0516 3.70 4.10 4.5017 3.45 3.85 4.1518 3.15 3.55 3.9519 2.90 3.30 3.7020 2.80 3.10 3.6021 2.55 2.95 3.2522 2.30 2.60 3.10

23-25 2.20 2.60 2.9526-30 2.20 2.40 2.8031+ 2.15 2.25 2.50

Increases in Compensation Limits: The IRC Section 401(a)(17) limit is assumed to increase 2.75% perannum, compounded annually. The Social Security Taxable Wage Base is assumed to increase 3.75% perannum, compounded annually.





A. Actuarial Assumptions, Continued

Termination: Withdrawal rates vary by age, years of employment, and gender. Illustrative rates are shown below:

Years of Employment

Less Than 10 Years of Employment

MaleFemale

<40 40+0 8.19% 7.61% 7.61%1 6.72 7.00 7.002 5.90 6.09 6.093 4.17 5.89 3.804 3.39 5.65 2.595 2.68 5.54 2.196 2.36 5.54 1.807 2.12 5.36 1.688 1.59 5.32 1.439 1.52 4.07 1.28

* Members must have attained 10 years of service or 60 years of age (62 years of age for Class E and F mem-bers, 65 years of age for Class G members) in order to receive an annuity benefit.

Age

Annual Rates for Those With Deferred Annuity Benefits*

10-14 Years of Employment 15-19 Years of Employment 20-24 Years of Employment

Male Female Male Female Male Female

30 0.81% 4.30% 0.59% 3.52% 0.39% 2.35%

35 0.85 3.21 0.61 2.63 0.41 1.75

40 0.71 1.50 0.51 1.22 0.34 0.82

45 0.59 0.69 0.42 0.57 0.28 0.38

50 0.71 0.70 0.51 0.58 0.34 0.38

55 1.36 1.34 0.98 1.10 0.65 0.73

Age

Annual Rates for Those Receiving Return of Contributions

10-14 Years of Employment 15-19 Years of Employment 20-24 Years of Employment

Male Female Male Female Male Female

30 0.55% 0.47% 0.40% 0.39% 0.26% 0.26%

35 0.51 0.34 0.37 0.28 0.25 0.19

40 0.34 0.18 0.24 0.14 0.16 0.10

45 0.21 0.07 0.15 0.05 0.10 0.04

50 0.15 0.07 0.11 0.05 0.07 0.04

55 0.10 0.09 0.07 0.07 0.05 0.05






Retirement: Rates of retirement vary by age, gender, and eligibility for an unreduced pension and post-retire-ment medical benefits.

The rates listed below are for members hired prior to July 1, 2007 (Class A and B employees). Illustrative ratesare shown below:

Age

Less Than Age 55 or Less Than 25 Years

of Service

Attainment of Age 55 and 25 Years of Service

First Eligibility After First EligibilityMale Female Male Female Male Female

<47 1.2% 1.2% N/A N/A N/A N/A48 1.5 1.5 N/A N/A N/A N/A49 1.7 1.7 N/A N/A N/A N/A50 2.0 2.0 N/A N/A N/A N/A51 2.4 2.4 N/A N/A N/A N/A52 2.8 2.8 N/A N/A N/A N/A53 3.8 3.8 N/A N/A N/A N/A54 4.8 4.8 N/A N/A N/A N/A55 N/A N/A 15.0% 16.0% N/A N/A56 N/A N/A 22.0 19.0 12.0% 13.0%57 N/A N/A 22.0 19.0 13.0 14.058 N/A N/A 25.0 25.0 14.0 14.059 N/A N/A 25.0 25.0 15.0 15.060 10.0 7.0 27.0 30.0 21.0 20.061 10.0 7.0 30.0 32.0 23.0 22.062 11.0 10.0 40.0 46.0 36.0 32.063 11.0 10.0 40.0 44.0 30.0 26.564 11.0 10.0 40.0 44.0 30.0 26.565 17.0 15.0 50.0 50.0 38.0 35.0

66-70 17.0 15.0 50.0 50.0 30.0 30.071+ 20.0 20.0 50.0 50.0 30.0 30.0






The rates listed below are for members hired on or after July 1, 2007 and before November 2, 2008 (Class Demployees). Illustrative rates are shown below:

Age


of Service



<47 0.6% 0.6% N/A N/A N/A N/A48 0.8 0.8 N/A N/A N/A N/A49 0.9 0.9 N/A N/A N/A N/A50 1.0 1.0 N/A N/A N/A N/A51 1.2 1.2 N/A N/A N/A N/A52 1.4 1.4 N/A N/A N/A N/A53 1.9 1.9 N/A N/A N/A N/A54 2.4 2.4 N/A N/A N/A N/A55 11.5 11.5 N/A N/A N/A N/A56 12.0 12.0 N/A N/A N/A N/A57 12.5 12.5 N/A N/A N/A N/A58 13.5 13.5 N/A N/A N/A N/A59 14.0 14.0 N/A N/A N/A N/A60 10.0 7.0 29.0% 30.0% N/A N/A61 10.0 7.0 30.0 32.0 23.0% 22.0%62 11.0 10.0 40.0 46.0 36.0 32.063 11.0 10.0 40.0 44.0 30.0 26.564 11.0 10.0 40.0 44.0 30.0 26.565 17.0 15.0 50.0 50.0 38.0 35.0

66-70 17.0 15.0 50.0 50.0 30.0 30.071+ 20.0 20.0 50.0 50.0 30.0 30.0






The rates listed below are for members hired after November 1, 2008 and before June 28, 2011 (Class E andF employees). Illustrative rates are shown below:

Age


of Service



<47 0.6% 0.6% N/A N/A N/A N/A48 0.7 0.7 N/A N/A N/A N/A49 0.8 0.8 N/A N/A N/A N/A50 0.9 0.9 N/A N/A N/A N/A51 1.1 1.1 N/A N/A N/A N/A52 1.3 1.3 N/A N/A N/A N/A53 1.7 1.7 N/A N/A N/A N/A54 2.2 2.2 N/A N/A N/A N/A55 10.5 10.5 N/A N/A N/A N/A56 10.8 10.8 N/A N/A N/A N/A57 11.0 11.0 N/A N/A N/A N/A58 12.0 12.0 N/A N/A N/A N/A59 12.5 12.5 N/A N/A N/A N/A60 17.0 19.0 N/A N/A N/A N/A61 18.5 20.5 N/A N/A N/A N/A62 29.5 24.0 50.0% 46.0% N/A N/A63 11.0 10.0 40.0 44.0 30.0% 26.5%64 11.0 10.0 40.0 44.0 30.0 26.565 17.0 15.0 50.0 50.0 38.0 35.0

66-70 17.0 15.0 50.0 50.0 30.0 30.071+ 20.0 20.0 50.0 50.0 30.0 30.0






The rates listed below are for members hired on or after June 28, 2011 (Class G employees). Illustrative ratesare shown below:

Age


of Service



<47 0.3% 0.3% N/A N/A N/A N/A48 0.4 0.4 N/A N/A N/A N/A49 0.4 0.4 N/A N/A N/A N/A50 0.5 0.5 N/A N/A N/A N/A51 0.6 0.6 N/A N/A N/A N/A52 0.7 0.7 N/A N/A N/A N/A53 0.9 0.9 N/A N/A N/A N/A54 1.1 1.1 N/A N/A N/A N/A55 5.0 5.0 N/A N/A N/A N/A56 6.0 6.0 N/A N/A N/A N/A57 7.0 7.0 N/A N/A N/A N/A58 8.0 8.0 N/A N/A N/A N/A59 9.0 9.0 N/A N/A N/A N/A60 13.0 14.0 N/A N/A N/A N/A61 14.0 15.0 N/A N/A N/A N/A62 35.0 32.0 N/A N/A N/A N/A63 25.0 25.0 N/A N/A N/A N/A64 25.0 25.0 N/A N/A N/A N/A65 40.0 40.0 50.0% 50.0% N/A N/A

66-70 17.0 15.0 50.0 50.0 30.0% 30.0%71+ 20.0 20.0 50.0 50.0 30.0 30.0






Disability: Incidence of ordinary disabilities among active members apply upon the attainment of 10 years ofservice until the attainment of first eligibility for retirement. For members eligible for early retirement, the greaterof the early retirement and disability benefit is valued. The rates vary by age, gender, and type of disability.Illustrative rates are shown below:

AgeOrdinary Accidental

Male Female Male Female25 0.0301% 0.0379% 0.0060% 0.0060%30 0.0473 0.0550 0.0060 0.006035 0.0609 0.0674 0.0060 0.006040 0.0701 0.0893 0.0060 0.006045 0.1023 0.1317 0.0060 0.006050 0.1421 0.1759 0.0060 0.006055 0.3732 0.3506 0.0060 0.0060

For Class F and G members assumed to receive a disability benefit under Chapter 3, P.L. 2010, it is assumedthat Class F members will begin receiving their retirement benefit at the earlier of age 70 or 36 years of serv-ice and Class G members will begin receiving their retirement benefit at age 70. The valuation excludes bene-fits paid from any disability income policy prior to retirement since these benefits are not paid from TPAF.

Pre-retirement Mortality: Illustrative rates of mortality of active members which vary by age and gender areshown below. A generational approach is applied using Scale AA to account for future mortality improvement.The base year is 2000. Illustrative rates for the base year are shown below. No accidental deaths are assumed.

AgeOrdinary

Male Female25 0.0345% 0.0170%30 0.0376 0.019135 0.0353 0.020740 0.0591 0.028445 0.0890 0.046650 0.1342 0.064555 0.1978 0.101660 0.2747 0.158965 0.4263 0.237470 0.6725 0.3754






Post-retirement Mortality: Rates of mortality vary by age, gender, and type of retirement. A generationalapproach is applied using Scale AA to account for future mortality improvement for non-disabled annuitants.The base year is 2000 for males and 2003 for females. Illustrative rates for the base year and Scale AA areshown below:

Age

Service Retirements and Beneficiaries Scale AA Disability Retirements

Male Female Male Female Male Female45 0.3573% 0.1375% 1.3% 1.6% 1.8057% 0.7078%50 0.5265 0.2151 1.8 1.7 2.3180 1.095855 0.4781 0.3066 1.9 0.8 2.8354 1.571760 0.5813 0.4937 1.6 0.6 3.3634 2.074765 1.0238 0.6602 1.4 0.5 4.0139 2.662570 1.6962 1.0497 1.5 0.6 5.0066 3.575375 2.9598 1.7342 1.4 0.8 6.5654 4.961980 5.2282 3.0118 1.0 0.7 8.7498 6.869685 9.2106 6.4019 0.7 0.6 11.3282 9.5193






Non-contributory Members: 30% are assumed to return to contributory status.

Beneficiaries: 100% of active members are assumed to have a beneficiary for receipt of the lump sum deathbenefit or employee contribution refund upon death.

Form of Payment: Modified Cash Refund Annuity.

Special Data Adjustments: Determination of employee type is based on Class Code and was used as pro-vided by the Division. Active members where no salary was provided, no date of birth was provided, or ASFwas negative were excluded from the valuation. A liability equal to the ASF was held. For beneficiaries whereno gender code or date of birth was provided, reasonable assumptions were made based on records providedin prior years or the deceased retiree’s records. For retirees with a joint annuitant option code that was miss-ing a spouse’s date of birth, husbands are assumed to be 3 years older than wives. All such records wereincluded in the valuation. Retiree members where no benefit and monthly allowance was provided, or no cause,class, or option was provided were excluded from the valuation.

B. Actuarial Valuation Method: The projected Unit Credit Method was used as required by Chapter 62, P.L. 1994as modified by Chapters 115, P.L. 1997 and 133, P.L. 2001. Non-contributory life insurance benefits are fund-ed on a term cost basis.

C. Asset Valuation Method: A five year average of market value with write-up was used. This method takes intoaccount appreciation (depreciation) in investments in order to smooth asset values by averaging the excess ofthe actual over the expected income, on a market value basis, over a five year period. Cash flows are basedon an accrual accounting approach. This method is prescribed by statute. The market value of assets is usedfor the Contributory Group Insurance Premium Fund for GASB purposes.

The interest rate has been decreased from 7.95% to 7.90% per the State Treasurer and the salary increaseassumption has been modified to better reflect recent experience.

The IRC Section 401(a)(17) limit increase assumption has been decreased from 3.00% to 2.75% per annum,compounded annually. The Social Security Taxable Wage Base increase assumption has been decreased from4.00% to 3.75% per annum, compounded annually.





ValuationDate

Added to Rolls Removed From Rolls Rolls at End of Year % Increasein Average

AnnualAllowance

AverageAnnual




Allowance

6/30/07 5.136 N/A 1,753 N/A 71,997 $2,427,632,794 4.65% $33,719

6/30/08 5,188 N/A 1,772 N/A 75,413 2,627,478,324 3.33 34,841

6/30/09 4,684 N/A 1,883 N/A 78,214 2,842,667,672 4.32 36,345

6/30/10 4,147 N/A 2,124 N/A 80,237 2,957,518,144 1.42 36,860

6/30/11 7,744 N/A 2,069 N/A 85,912 3,285,419,699 3.75 38,242

6/30/12 5,496 N/A 2,100 N/A 89,308 3,462,975,740 1.40 38,776


Valuation Date

Number of Active

Members (a)

Annual Compensation (b)

Average Compensation (b/a)


Compensation

6/30/07 155,096 $9,676,260,309 $62,389 2.94%6/30/08 156,087 10,040,685,465 64,327 3.116/30/09 157,109 10,353,262,361 65,899 2.446/30/10 157,023 10,659,241,596 67,883 3.016/30/11 151,115 10,416,454,800 68,931 1.546/30/12 150,200 10,488,890,840 69,833 1.31

SOLVENCY TEST

ValuationDate


Net AssetsAvailable

for Benefits*

Percentage of Accrued Liabilities

Covered by Net Assets

(1) Active

Member contributions

(2) Retirees

& Deferred Vested

(3)Active Members

(EmployerFinanced) (1) (2) (3)

6/30/07 $7,489,958,068 $25,983,694,501 $14,653,800,841 $36,594,817,062 100.00% 100.00% 21.00%

6/30/08 7,914,403,491 28,072,978,525 14,670,896,258 36,541,083,946 100.00 100.00 4.00

6/30/09 8,450,026,966 30,276,614,675 14,691,686,935 34,708,001,341 100.00 87.00 0.00

6/30/10 9,077,370,573 27,435,656,099 11,904,905,673 33,136,475,630 100.00 88.00 0.00

6/30/11 8,987,300,905 30,765,265,431 10,470,122,414 32,156,229,300 100.00 75.00 0.00

6/30/12 9,432,073,781 32,411,855,950 9,560,713,006 31,079,212,983 100.00 67.00 0.00

*The above table is based on Valuation Assets. As of June 30, 2012, the solvency precentages would be 1)100%, 2) 51% and 3) 0%, respectively, if based on the market value of assets of $26,038.0 million.




ANALYSIS OF FINANCIAL EXPERIENCEGAINS AND LOSSES IN UNFUNDED ACCRUED LIABILITIES

RESULTING FROM DIFFERENCES BETWEENASSUMED EXPERIENCE AND ACTUAL EXPERIENCE

Actual Valuation as of

Type of ActivityJune 30, 2012

($ Millions)June 30, 2011

($ Millions)June 30, 2010*

($ Millions)Economic Factors:

Investment Return $(1,260.3) $(1,125.6) $(1,843.2)Salary Increases 119.5 330.0 188.3Pension Adjustments (COLA) N/A** 251.3 587.5Expenses (11.8) (12.7) (12.2)

Demographic Factors:Active Members (100.8) (272.3) (78.9)New Entrants (35.5) (26.5) (47.7)Non-Contributing Members (15.6) (17.1) (28.0)Retirees and Beneficiaries (40.1) (52.9) (10.0)

Total $(1,344.6) $(925.8) $(1,244.2)

* 2010 analysis based on 2006 experience study

** Some very small increases were provided during the year to offset negative adjustments from prior years.These increases are included in the demographic factors for retirees and beneficiaries.


This summary of plan provisions is intended only todescribe the essential features of the plan. All eligibilityrequirements and benefit amounts shall be determinedin strict accordance with the plan document itself.

1. TYPE OF PLAN

The Plan is a contributory, defined benefit plan.Effective October 1, 2011, contributions byMembers are 6.5% and increase by 1/7 of 1% eachJuly thereafter until an ultimate rate of 7.5% isattained on July 1, 2018. For members hired on orafter July 1, 2007, compensation for contributions iscapped at the Social Security Taxable Wage Base($110,100 for 2012). For compensation in excess ofthe Social Security Wage Base, contributions onthe excess compensation are made to the DefinedContribution Retirement Program.

2. EFFECTIVE DATE

The Plan was established in 1919. It was reorgan-ized and integrated with Social Security in 1955.Social Security integration was eliminated in 1966,i.e., reductions in retirement benefits based onSocial Security benefits were eliminated.

3. ELIGIBILITY FOR MEMBERSHIP

Employees appointed to positions requiring certifica-tion as members of a regular teaching or profession-al staff of a public school system in New Jersey arerequired to enroll as a condition of employment.Employees of the Department of Education holdingunclassified, professional and certificated titles areeligible for membership. Temporary or substituteemployees are not eligible. The eligible employeemust be scheduled to work at least 32 hours perweek effective May 22, 2010, per Chapter 1, P.L.2010.

4. DEFINITIONS

Fiscal Year: A Fiscal Year is a 12-month periodbeginning on July 1 and ending on June 30.

Credited Service: A year of Credited Service foreach year an employee is a Member of theRetirement System plus service, if any, covered bya prior service liability. Class F members must bescheduled to work at least 32 hours per week,Class E members also must have an annual salaryof $7,500 (indexed for inflation) and other members

must have an annual salary of $500.

Final Compensation: This is the average annualcompensation upon which contributions by a mem-ber are based on the period consecutive years ofCreditable Service immediately preceding retire-ment or the period of highest fiscal years ofMembership Service. The period equals three formembers hired prior to May 22, 2010 and five forClass F and later members.

Final Year Compensation: This is the compensa-tion upon which contributions by a Member to theAnnuity Savings Fund are based in the last year ofMembership Service.

Aggregate Member Contributions: This is thesum of all amounts deducted from the compensa-tion of a Member or contributed by him or on hisbehalf without interest.

Class A Member: Any member who contributestowards retirement allowance based on 1/64th ben-efit rate per year of creditable service.

Class B Member: Any member hired prior to July 1, 2007 who contributes towards a retirementallowance based on 1/55th benefit rate per year ofcreditable service.

Class D Member: Any member hired on or afterJuly 1, 2007 and before November 2, 2008 whocontributes up to the Social Security TaxableWage Base towards a retirement allowance basedon 1/55th benefit rate per year of creditable serv-ice payable at age 60.

Class E Member: Any member hired afterNovember 1, 2008 and before May 22, 2010 whocontributes up to the Social Security TaxableWage Base towards a retirement allowance basedon 1/55th benefit rate per year of creditable serv-ice payable at age 62.

Class F Member: Any member hired after May 21,2010 and before June 28, 2011 who contributes upto the Social Security Taxable Wage Base towards aretirement allowance based on 1/60th benefit rateper year of creditable service payable at age 62.

Class G Member: Any member hired on or afterJune 28, 2011 who contributes up to the SocialSecurity Taxable Wage Base towards a retirement



SUMMARY OF PRINCIPAL PLAN PROVISIONS


allowance based on 1/60th benefit rate per year ofcreditable service payable at age 65.

5. COST-OF-LIVING ADJUSTMENT

The Pension Adjustment Program provides a cost-of-living adjustment (COLA) to retirees and theirsurvivors who receive a monthly retirementallowance from the TPAF. The first adjustment isreceived in the 25th month after the member’sretirement. Subsequent cost-of-living adjustmentsare computed annually and are first reflected inFebruary. The rate of increase is equal to 60 per-cent of the percentage change between the aver-age CPI for the 12 month period ending December31 in the year of retirement and the August 31 pre-ceding the February adjustment. Any pensionadjustments to be paid on or after July 1, 2011have been eliminated for all members.

6. RETIREMENT BENEFITS

Service Retirement:

SERVICE RETIREMENT ELIGIBILITY: Eligibilitymeans age 60 (Class A, B, and D), age 62 (ClassE and F) or age 65 (Class G) with no minimumservice requirement.

SERVICE RETIREMENT BENEFIT: An employee'sannual service retirement allowance is equal to amember annuity plus an employer pension whichtogether equals 1/64th of Final Compensation foreach year of service for Class A members and1/55th of Final Compensation for each year of serv-ice for Class B, D and E members and 1/60th ofFinal Compensation for each year of service forClass F and G members. The Member annuity isbased on the member contributions credited at thevaluation interest rate.

Note: See Section 12 for special benefits for veter-an members.

Early Retirement:

EARLY RETIREMENT ELIGIBILITY: Class A, B, D,E and F members may retire after completion of 25years of Creditable Service, and Class G membersmay retire after completion of 30 years ofCreditable Service.

EARLY RETIREMENT BENEFIT: The benefit may

be either:

(i) the lump sum withdrawal benefit described in7.a. below; or

(ii) the Service Retirement Benefit reduced by 1/4of one percent for each month the retirementdate precedes age 55 for Class B members; or

(iii) the Service Retirement Benefit reduced by 1/12of one percent for each month the retirementdate precedes age 60 but over age 55 and by¼ of one percent for each month the retirementdate precedes age 55, for Class D members.

(iv) the Service Retirement Benefit reduced by 1/12of one percent for each month the retirementdate precedes age 62 but over age 55 and by¼ of one percent for each month the retirementdate precedes age 55, for Class E and F mem-bers.

(v) the Service Retirement Benefit reduced by ¼ ofone percent for each month the retirement dateprecedes age 65, for Class G members.

Deferred Retirement:

Eligibility: A Member is eligible upon termination ofservice prior to age 60 (Class A, B, and D), age 62(Class E and F) or age 65 (Class G) and after 10years of Creditable Service.

Deferred Retirement Benefit: The benefit may beeither:

(i) the lump sum withdrawal benefit described in7.a. above; or

(ii) a deferred retirement benefit, commencing atage 60 (Class A, B, and D), age 62 (Class Eand F) or age 65 (Class G), equal to a memberannuity plus an employer pension whichtogether provide a retirement allowance equalto the service retirement benefit based on FinalCompensation and Creditable Service at dateof termination. Member annuity based onmember contributions credited at the valuationinterest rate.

7. TERMINATION BENEFITS

Lump Sum Withdrawal:



SUMMARY OF PRINCIPAL PLAN PROVISIONS, Continued


ELIGIBILITY: A Member is eligible upon termina-tion of service.

LUMP SUM WITHDRAWAL BENEFIT: The benefitequals a refund of Aggregate Member Contributionsplus, if the member has completed three years ofservice, interest accumulated at 2.0% per annumallowed thereon.

8. DEATH BENEFITS

Ordinary Death (Insured) Benefit - Lump Sum(Non-Contributory):

PRE-RETIREMENT DEATH BENEFITELIGIBILITY: Any current active member is eligible.

PRE-RETIREMENT DEATH BENEFIT: The benefitis a lump sum benefit equal to the AggregateContributions with interest allowed thereon plus anamount equal to 1-1/2 times Compensation at dateof death.

POST-RETIREMENT DEATH BENEFIT PRIOR TOAGE 60 (CLASS A,B, AND D), AGE 62 (CLASS EAND F) OR AGE 65 (CLASS G) ELIGIBILITY:Eligible if disabled or retired early.

POST-RETIREMENT DEATH BENEFIT PRIOR TOAGE 60 (CLASS A, B, AND D), AGE 62 (CLASS EAND F) OR AGE 65 (CLASS G) BENEFIT: The ben-efit is as follows:

(1) For death while a Disabled Retiree the benefitis equal to 1-1/2 times Compensation.

(2) For death while an Early Retiree, the benefit isequal to 3/16 times Compensation.

(3) For death while vested terminated, the benefitis equal to his Aggregate Contributions withinterest allowed thereon.

POST-RETIREMENT DEATH BENEFIT AFTERAGE 60 (CLASS A, B, AND D), AGE 62 (CLASS EAND F) OR AGE 65 (CLASS G) ELIGIBILITY:Eligible after attainment of age 60 for service,deferred and disabled retirements (if not disabled,10 years of Creditable Service required for mem-bers enrolling on or after July 1, 1971).

POST-RETIREMENT DEATH BENEFIT AFTERAGE 60 (CLASS A, B, AND D), AGE 62 (CLASS EAND F) OR AGE 65 (CLASS G) BENEFIT: Thebenefit payable is equal to 3/16 times

Compensation.

Contributory Death Benefit: An additional,employee-paid, death benefit is also availablethrough group insurance purchased by the Boardof Trustees. Contributions for this benefit arerequired by Members during the first year of enroll-ment. Participation may be terminated after the firstyear. The benefit prior to retirement is 2 times com-pensation. The benefit after retirement is 1/4 timesfinal year compensation (coverage at retirement,and 10 years of participation for Members enrollingon or after July 1, 1970, is required).

Pre-retirement Accidental Death Benefit:

ELIGIBILITY: A death resulting from injuries receivedfrom an accident during performance of duty and nota result of willful negligence is eligible.

PRE-RETIREMENT LUMP SUM BENEFIT: Thebenefit is a lump sum equal to 1-1/2 timesCompensation.

PRE-RETIREMENT ACCIDENTAL DEATHBENEFIT: The benefit payable is as follows:

(1) The annuity benefit to a widow or widower isequal to 50% of Compensation, payable for lifeor until remarriage.

(2) The annuity benefit, when there is no spouse,or the spouse is remarried, is equal to 20% ofCompensation for one child, 35% for two chil-dren, 50% for three or more children. The ben-efit is payable while the children are underage 18 and it is payable for life if they are dis-abled.

(3) The annuity benefit, when there is no spouseor children, is equal to 25% of Compensationfor one dependent parent and 40% for twodependent parents.

(4) The benefit, when there is no relation as stat-ed above, is equal to the AggregateContributions with interest allowed thereonand is payable to a beneficiary or to theMember's estate. This is also the minimumbenefit payable under 1, 2, or 3 above.

9. DISABILITY BENEFITS

Ordinary Disability Retirement:





ELIGIBILITY: A Member is eligible for OrdinaryDisability Retirement if he (she) has 10 years ofCreditable Service and is totally and permanentlyincapacitated from the performance of usual oravailable duties.

ORDINARY DISABILITY RETIREMENT BENEFITFOR CLASS A, B, D, AND E MEMBERS: The totalretirement allowance is equal to the greater of:

(1) 1.64% of Final Compensation times the num-ber of years of Creditable Service; or

(2) 43.6% of Final Compensation

Note: See Section 12 for special benefits for veter-an members.

ORDINARY AND ACCIDENTAL DISABILITYRETIREMENT BENEFIT FOR CLASS F AND GMEMBERS: A disability benefit equal to 60% ofsalary reduced by the initial Social Security benefit ispaid until the earlier of age 70 or commencement ofa retirement benefit from a disability income policyoutside of TPAF. The policy also makes employeecontributions during the period of disability.

Accidental Disability Retirement for Class A, B,D, and E members:

ELIGIBILITY: A Member is eligible upon total andpermanent incapacitation as a direct result of atraumatic event occurring during and as a result ofthe performance of regular or assigned duties.

ACCIDENTAL DISABILITY RETIREMENT BENEFIT:The benefit payable is equal to a Member annuity plusan employer pension which together equals 72.7% ofthe Compensation at date of injury.

10. ADDITIONAL OLD-PLAN BENEFIT

An additional pension is payable to any retiree whowas a member of the old Teachers' RetirementFund. This pension is the actuarial equivalent of hiscontributions to the old Teachers' Retirement Fundwithout interest.

11. SPECIAL MINIMUM BENEFIT

A member who retired prior to 1955 with 20 or moreyears of service may receive a minimum pension of$500 a month inclusive of any amounts payableunder any pension adjustments.

12. SPECIAL BENEFITS FOR VETERANS

Service Retirement: Eligible if member attainsage 60 and completes 20 years of service orattains age 55 and completes 25 years of service.Benefit equals 54.5% of highest 12-month contrib-utory compensation.

Chapter 97 Benefit: Eligible if age 55 and com-pletes 35 years of service. Benefit equals 1/55thof final year compensation for each year of serv-ice.

13. BENEFIT AND COMPENSATION LIMITS

The provisions of IRC Section 415 and IRC Section401(a)(17), which limit benefits paid and limit com-pensation used in determining benefits, has beenreflected in this report. The IRC Section 415 limit is$200,000 and the 401(a)(17) compensation cap is$250,000 for 2012 and is applied on a calendaryear basis.

14. FORMS OF PAYMENT

Maximum Option — Single life annuity.Option 1 — Single life annuity with return ofreserve option.Option 2 — 100% joint and survivor annuity.Option 3 — 50% joint and survivor annuity.Option 4 — Other percentage joint and survivor annu-ity.Option A — 100% pop-up joint and survivor annuity.Option B — 75% pop-up joint and survivor annuity.Option C — 50% pop-up joint survivor annuity.Option D — 25% pop-up joint survivor annuity.

15. CONTRIBUTIONS

Member Contributions: Each member becoming amember on or after January 1, 1956 and prior to July 1, 2007 contributes at the rate of contributionapplicable to Class B members. Any member hiredafter June 30, 2007 and prior to November 2, 2008are Class D members. Members hired afterNovember 1, 2008 and prior to May 22, 2010 areClass E members. Members hired after May 21,2010 are Class F members, and members hiredafter June 28, 2011 are Class G members.

(1) CLASS D, E, F, OR G MEMBERSHIP: Class D,E, F, or G members contribute at their applica-





ble contribution rate up to the Social SecurityTaxable Wage Base.

(2) CLASS B MEMBERSHIP: Any member onDecember 31, 1955 may elect to be classifiedas a Class B member and contribute at the rateof contribution applicable to Class B membersat his age at membership. Any such membermay elect to increase his accumulated deduc-tions by the amount required by the Board toreceive credit as a Class B member for all orpart of his service prior to such election.

(3) CLASS A MEMBERSHIP: Any member who isnot a veteran and does not elect to be classifiedas a Class B member continues to contribute atthe rate of contribution applicable to his age atmembership which was payable prior to theestablishment of the integrated system, exceptthat if he became a member subsequent to June30, 1946 he will pay after January 1, 1955 at therate of contribution in effect on June 30, 1946applicable to his age at membership.

Prior to July 1, 1979 different contribution rateswere established for men and women. Effective onthat date members contribute at rates intermediatebetween the rates previously applicable to maleand female members, computed to provide thesame present value of future employee contribu-tions at each entry age on the basis of the member-ship as constituted on the effective date.

Local Employer Contributions:

(1) EARLY RETIREMENT INCENTIVECONTRIBUTIONS: The State and Local employ-ers which elected to participate in the early retire-ment incentive programs authorized by Chapters137, 229 and 231, P.L.1991 and Chapters 48, 138and 163, P.L. 1993 and Chapter 23, P.L. 2002 andChapters 128 and 129, P.L.2003 pay contributionsto cover the additional liability for these programsover amortization periods chosen by the employer(15 years for Chapters 128 and 129) or the amor-tization period for the Unfunded Accrued Liabilityof the system (Chapter 23, P.L. 2002 and Chapter21, P.L. 2008). The remaining present values arere-amortized upon changes to the interest rateassumption. Effective with the revised June 30,2011 actuarial valuation, for any local employerwith an increasing payment amortization sched-

ule, the increase factor is 3.25%.

(2) CHAPTER 113 CONTRIBUTIONS: CertainSchool Districts have elected to exempt aselect group of employees from the compensa-tion limit under IRC Section 401(a)(17) incor-porated under Chapter 113. These schooldistricts will pay the full cost of this exemptionat a member's date of retirement.

16. CHANGES IN PLAN PROVISIONSSINCE PRIOR VALUATION

None.





April 3, 2013

Board of TrusteesPolice and Firemen’s Retirement System

of New Jersey



An actuarial valuation of the Police and Firemen’s Retirement System is performed annually tomeasure the ongoing costs of the System (with required contributions determined separately forthe State and Local employers) and the progress towards the funding goals of the System overtime. In general, the financial goal of the Police and Firemen’s Retirement System is a pattern ofcontributions, which is sufficient to cover the normal cost of the System plus the contributiontowards the unfunded accrued liability.

In accordance with the New Jersey statutes, employers are required to make two contributions tothe System, a normal contribution and an accrued liability contribution. The normal contribution forbasic allowances and cost of living adjustments (COLA’s) is defined under the Projected UnitCredit funding method as the present value of the benefits accruing during the current year. Priorto the July 1, 2010 valuation, the unfunded accrued liability contribution for basic allowances andCOLA’s was determined as a level percentage of pay required to amortize the unfunded accruedliability over 30 years in annual payments increasing by 4% per year. The funding reform provi-sions of Chapter 78, P.L. 2011 changed the methodology used to amortize the unfunded accruedliability. Beginning with the July 1, 2010 actuarial valuation, the accrued liability contribution shallbe computed so that if the contribution is paid annually in level dollars, it will amortize the unfund-ed accrued liability over an open 30 year period. Beginning with the July 1, 2018 actuarial valua-tion, the accrued liability contribution shall be computed so that if the contribution is paid annuallyin level dollars it will amortize the unfunded accrued liability over a closed 30 year period (i.e., foreach subsequent actuarial valuation, the amortization period will decrease by one year.)Beginning with the July 1, 2028 actuarial valuation when the remaining amortization period reach-es 20 years, any increase or decrease in the unfunded accrued liability as a result of actuarial loss-es or gains for subsequent valuation years shall serve to increase or decrease, respectively, theamortization period for the unfunded accrued liability, unless an increase in the amortization peri-od will cause it to exceed 20 years. If an increase in the amortization period as a result of actuar-ial losses for a valuation year would exceed 20 years, the accrued liability contribution shall becomputed for that valuation year using a 20 year amortization period.

The valuation reflects the funding reform provisions of Chapter 1, P.L. 2010. Chapter 1, P.L. 2010allows the State Treasurer to phase in to the full recommended pension contribution. The Statewould be in compliance with its funding requirement provided the State makes a payment of atleast 1/7th of the full contribution, as computed by the actuaries, in the State fiscal year commenc-ing July 1, 2011 and makes a payment in each subsequent fiscal year that increases by at leastan additional 1/7th until payment of the full contribution is made in the seventh fiscal year andthereafter.

The valuation reflects the final State contribution under Chapter 1, P.L. 2010 for fiscal year 2012,which allowed the State Treasurer to reduce the State normal and accrued liability contributions forfiscal year 2012 of $375,234,766 to $53,606,000. This amount excludes the Non-ContributoryGroup Insurance Premium of $5,640,203. Accordingly, a fiscal year 2012 employer contribution ofonly $53,606,000 was recognized for purposes of this valuation.


In addition, the fiscal year 2013 recommended State pension contribution of $393,637,547 hasbeen reduced to $112,467,869 and has been recognized as a receivable contribution for purpos-es of this valuation. This amount excludes the estimated Non-Contributory Group InsurancePremium of $8,648,000. Accordingly, a fiscal year 2013 employer contribution of $112,467,869 wasrecognized as a receivable contribution for purposes of this valuation. This amount may be subjectto change per the requirements of the State’s fiscal year 2013 spending plan.

A State contribution of $398,052,381 is recommended for the fiscal year beginning July 1, 2013.This amount is comprised of an unfunded accrued liability payment of $274,067,426 plus a normalcontribution of $123,984,955. However, the provisions of Chapter 1, P.L. 2010 allow the StateTreasurer to reduce the recommended pension contribution for fiscal year 2014 to no less than3/7th of the recommended pension contribution. Accordingly, the Chapter 1, P.L. 2010 minimumrequired pension contribution is $170,593,879. This is comprised of an unfunded accrued liabilitypayment of $117,457,469 and a normal contribution of $53,136,410. This amount excludes theestimated Non-Contributory Group Insurance Premium of $7,276,000. This amount may be sub-ject to change per the requirements of the State’s fiscal year 2014 spending plan.

The valuation reflects Chapter 19, P.L. 2009, which allowed the State Treasurer to reduce Localemployers’ normal and accrued liability contributions to 50% of the amount certified for the Statefiscal year 2009. In addition, certain Local employers who were eligible under Chapter 19, P.L.2009 to defer 50% of their State fiscal year 2009 pension contribution but did not were permittedto defer 50% of their State fiscal year 2010 recommended pension contribution. This unfunded lia-bility will be paid by the Local employers in level annual payments over a period of 15 years withthe first payment due in the fiscal year ending June 30, 2012. The unfunded liability will be adjust-ed by the rate of return on the actuarial value of assets. The legislation also provides that a Localemployer may pay 100% of the recommended contributions for State fiscal years 2009 and 2010.Such an employer will be credited with the full payments and any such amounts will not be includ-ed in their unfunded liability.

The valuation reflects the unauthorized early retirement incentive programs offered by certainLocal employers. The additional liability incurred by the System due to these programs is includedas a receivable contribution.

The underlying demographic data is maintained and provided by the New Jersey Division ofPensions and Benefits. The data is analyzed by Buck Consultants for internal completeness andconsistency and compared with the prior valuation data to again ensure consistency.

As required under Chapter 255, P.L. 1944, an actuarial investigation of the demographic experi-ence of the members and beneficiaries of the Police and Firemen’s Retirement System is madeonce in every three-year period. The July 1, 2012 valuation was based on the actuarial assump-tions that were determined from the July 1, 2007 – June 30, 2010 Experience Study (which wasapproved by the Board of Trustees at the November 14, 2011 Board meeting). The Treasurer hasrecommended a change in the economic assumptions used for the valuation. The rate of invest-ment return has been revised from 7.95% per annum to 7.90% per annum. The assumed salaryincreases have been reduced (the select period has been extended for five years and the ultimaterate has been decreased by 0.25%). These assumptions will remain in effect for valuation purpos-es until such time the Board or Treasurer recommends revised assumptions.

The valuation cost method used is the projected unit credit method. This method essentially fundsthe System’s benefits accrued to the valuation date. Experience gains and losses are recognizedin future accrued liability contributions. The asset valuation method used was a five-year averageof market values with write-up. This method takes into account appreciation (depreciation) ininvestments in order to smooth asset values by averaging the excess of the actual over the expect-ed income, on a market value basis, over a five-year period.

The valuation does not take into account any changes in U.S. equity prices and bond yields thathave occurred after the valuation date. Taking these into account may significantly change the


market and actuarial value of assets shown. The effect of these events on any funded ratios shown,and on Retirement System calculations, is not known. Retirement System funding and financialaccounting rules generally prohibit reflection of changes in assets and underlying economic condi-tions that occur after the valuation date.

The assumptions used to prepare the information required by Statements No. 25, No. 27 and No.50 of the Governmental Accounting Standards Board (GASB) were the same as those used forfunding purposes.

In our opinion, the attached schedules of valuation results fairly represent the status of the Policeand Firemen’s Retirement System and present an accurate view of historical data. The underlyingassumptions and methods used for both funding and GASB disclosure purposes are consistentwith the statutory specifications and represent a best estimate of the aggregate future experienceof the System.





• Solvency Test


• Brief Summary of the Benefit and Contribution Provisions as Interpreted for ValuationPurposes


To the best of our knowledge, this information is complete and accurate. The valuation was per-formed by, and under the supervision of, independent qualified actuaries who are members of theAmerican Academy of Actuaries with experience in performing valuations for public retirement sys-tems.

The valuation was prepared in accordance with the principles of practice prescribed by theActuarial Standards Board and generally accepted actuarial procedures and methods. The calcu-lations are based on the current provisions of the Retirement System, and on actuarial assump-tions that are individually and in the aggregate internally consistent and reasonable based on theactual experience of the Retirement System.


Buck Consultants

Janet H. Cranna, M.A.A.A., F.S.A., E.A., F.C.A., M.S.P.P.A.

Principal, Consulting Actuary





Section 13, Subsection (13) of Chapter 255, P.L. 1944 as amended by Chapter 157, P.L. 1972 of the New JerseyStatutes provides that once in every three-year period the actuary shall examine in detail the demographic experi-ence of the members and beneficiaries of the Police and Firemen’s Retirement System to assure that the tablesused for determining expected liabilities are consistent with recent experience.

The July 1, 2012 actuarial valuation of the Police and Firemen’s Retirement System reflects the recognition of theactuarial assumptions determined from the July 1, 2007 – June 30, 2010 Experience Study which was approvedby the Board of Trustees at the November 14, 2011 Board meeting and the revised economic assumptions, whichwere recommended by the Treasurer.




Separations from Service and Salary Increases: Representative values of the assumed annual rates of separa-tion and annual rates of salary increases are as follows:

Age

Annual Rates of

Select WithdrawalUltimate

Withdrawal

Up to the 1st Year 2nd Year 3rd Year 4th Year 5 to 9 Years

After 9 Years

25 5.00% 1.62% 1.40% 0.90% 0.35% 0.00%30 6.00 2.20 1.76 1.31 0.55 0.2435 7.00 2.25 1.76 1.31 0.77 0.2440 10.00 2.25 1.85 1.74 0.77 0.2745 3.50 2.25 1.85 2.32 1.35 0.2850 0.00 2.25 1.85 2.00 1.60 0.3055 0.00 0.00 0.00 0.00 0.00 0.00





* Retirement assumption prior to age 55 is for any member as of January 18, 2000 upon completion of 20 years of service.

Age

Annual Rates of

Death

DisabilityOrdinary

AccidentalMale* Female* Ordinary Accidental

25 0.037% 0.019% 0.006% 0.050% 0.029%

30 0.038 0.022 0.006 0.147 0.139

35 0.056 0.035 0.008 0.333 0.238

40 0.090 0.055 0.008 0.400 0.318

45 0.121 0.085 0.009 0.448 0.291

50 0.173 0.133 0.009 0.510 0.179

55 0.245 0.197 0.014 0.720 0.161

60 0.363 0.301 0.013 1.280 0.161

64 0.538 0.428 0.008 2.400 0.161

65 & Over 0.000 0.000 0.000 0.000 0.000

Age

Annual Rates of

Salary Increases

Service Retirements

Length of Service

Less than 21 Years*

21 to 24 Years 25 Years

26 or More Years

FY2012 toFY2021

FY2022 andThereafter

25 8.62% 9.62%

30 6.16 7.16

35 4.67 5.67

40 2.50% 0.00% 45.57% 15.40% 4.01 5.01

45 2.50 0.00 52.98 15.40 3.95 4.95

50 3.75 0.00 56.77 15.40 3.95 4.95

55 3.20 0.00 59.04 17.48 3.95 4.95

60 3.20 0.00 77.49 22.78 3.95 4.95

64 37.50 0.00 77.49 37.80 3.95 4.95

65 & Over 100.00 100.00 100.00 100.00

* RP-2000 Combined Healthy Mortality Tables projected on a generational basis from the base year of 2011 using Projection Scale AA. Rates shown above are unadjusted for Projection Scale AA.





Deaths After Retirement: RP-2000 Combined Healthy Mortality Tables for service retirements and beneficiariesprojected on a generational basis from the base year of 2011 using Projection Scale AA. Special mortality tablesare used for the period after disability retirement. Representative values of the assumed annual rates of mortalityunadjusted for Projection Scale AA are as follows:

Age

Service Retirementsand Beneficiaries

AgeDisability

RetirementsMen Women55 0.362% 0.272% 35 0.598%60 0.675 0.506 40 0.63465 1.274 0.971 45 0.80370 2.221 1.674 50 1.05875 3.783 2.811 55 1.21080 6.437 4.588 60 1.42685 11.076 7.745 65 1.949

Marriage: Husbands are assumed to be 3 years older than wives. Among the active population, 90% of partici-pants are assumed married. No children are assumed. Neither the percentage married nor the number of childrenassumption is individually explicit, but they are considered reasonable as a single combined assumption.

Valuation Method: Projected Unit Credit Method. This method essentially funds the System’s benefits accrued tothe valuation date. Experience gains and losses are recognized in future accrued liability contributions. In accor-dance with Chapter 78, P.L. 2011, beginning with the July 1, 2010 actuarial valuation, the accrued liability contribu-tion shall be computed so that if the contribution is paid annually in level dollars, it will amortize the unfunded accruedliability over an open 30 year period. Beginning with the July 1, 2018 actuarial valuation, the accrued liability contri-bution shall be computed so that if the contribution is paid annually in level dollars it will amortize the unfundedaccrued liability over a closed 30 year period (i.e., for each subsequent valuation, the amortization period shalldecrease by one year.) Beginning with the July 1, 2028 actuarial valuation, when the remaining amortization periodreaches 20 years, any increase or decrease in the unfunded accrued liability as a result of actuarial losses or gainsfor subsequent valuation years shall serve to increase or decrease, respectively, the amortization period for theunfunded accrued liability, unless an increase in the amortization period will cause it to exceed 20 years. If anincrease in the amortization period as a result of actuarial losses for a valuation year would exceed 20 years, theaccrued liability contribution shall be computed for the valuation year using a 20 year amortization period.

Chapter 78, P.L. 2011 increased member contributions from 8.5% to 10.0% of compensation with the increaseeffective October 2011. Based on discussions with the Division of Pension and Benefits, member contributions inexcess of 8.5% of compensation shall not reduce employer normal cost contributions.

Asset Valuation Method: A five year average of market values with write-up was used. This method takes intoaccount appreciation (depreciation) in investments in order to smooth asset values by averaging the excess of theactual over the expected income, on a market value basis, over a five-year period.





STATE

ValuationDate


AverageAnnual



Allowance Number*Annual**

Allowance

7/1/12 483 $21,936,867 83 $2,596,132 5,423 $223,064,017 9.57% $41,133

7/1/11 578 26,839,762 117 3,116,709 5,023 203,579,687 14.28 40,530

7/1/10 466 20,752,289 85 2,577,204 4,562 178,146,637 11.69 39,050

7/1/09 448 19,077,696 82 2,165,118 4,181 159,495,927 14.73 38,148

7/1/08 430 18,467,571 50 1,293,499 3,815 139,018,953 15.32 36,440

7/1/07 409 17,214,170 70 1,657,156 3,435 120,552,765 17.50 36,844

ValuationDate


AverageAnnual




Allowance

7/1/12 2,131 $119,315,514 855 $29,526,388 34,289 $1,644,739,476 5.88% $47,967

7/1/11 2,613 157,395,175 954 29,687,515 33,013 1,553,435,879 9.94 47,055

7/1/10 2,088 117,656,689 856 26,753,568 31,354 1,413,047,858 6.85 45,068

7/1/09 1,703 90,251,963 859 25,570,826 30,122 1,322,470,071 8.20 43,904

7/1/08 1,635 81,814,446 700 21,185,974 29,278 1,222,284,655 6.69 41,748

7/1/07 1,840 87,997,262 829 23,063,802 28,343 1,145,659,599 8.59 41,949

LOCAL EMPLOYERS

ValuationDate


AverageAnnual




Allowance

7/1/12 2,614 $141,252,381 938 $32,122,520 39,712 $1,867,803,493 6.31% $47,034

7/1/11 3,191 184,234,937 1,071 32,804,224 38,036 1,757,015,566 10.42 46,193

7/1/10 2,554 138,408,978 941 29,330,772 35,916 1,591,194,495 7.37 44,303

7/1/09 2,151 109,329,659 941 27,735,944 34,303 1,481,965,998 8.86 43,202

7/1/08 2,065 100,282,017 750 22,479,473 33,093 1,361,303,608 7.51 41,136

7/1/07 2,249 105,211,432 899 24,720,958 31,778 1,266,212,364 9.38 41,402

TOTAL SYSTEM

* These values include Domestic Relations beneficiaries in receipt but exclude deferred vested terminations.** The benefit amounts shown are the annualized benefits as of the valuation date and are not the actual benefits paid during the fiscal year.




SCHEDULE OF ACTIVE MEMBER VALUATION DATA*

STATE

Valuation Date

Number of Active Members

AnnualCompensation

AverageCompensation


Compensation7/1/12 7,187 $542,344,707 $75,462 (0.31)%7/1/11 7,237 547,809,629 75,696 4.077/1/10 7,572 550,731,084 72,733 5.817/1/09 7,915 544,071,811 68,739 0.187/1/08 7,936 544,555,658 68,618 0.377/1/07 7,968 544,750,465 68,367 6.55

LOCAL EMPLOYERS

Valuation Date


AnnualCompensation

AverageCompensation


Compensation7/1/12 33,632 $3,218,932,891 $95,710 3.85%7/1/11 34,762 3,203,676,618 92,160 3.967/1/10 36,632 3,247,452,128 88,651 3.047/1/09 37,235 3,203,508,603 86,035 2.437/1/08 37,530 3,152,174,629 83,991 4.547/1/07 37,163 2,985,725,499 80,341 4.39

TOTAL SYSTEM

Valuation Date


AnnualCompensation

AverageCompensation


Compensation7/1/12 40,819 $3,761,277,598 $92,145 3.16%7/1/11 41,999 3,751,486,247 89,323 3.967/1/10 44,204 3,798,183,212 85,924 3.527/1/09 45,150 3,747,580,414 83,003 2.087/1/08 45,466 3,696,730,287 81,308 3.947/1/07 45,131 3,530,475,964 78,227 4.80

* Includes all contributing and non-contributing active members.




SOLVENCY TEST

STATE

ValuationDate



Benefits*


(1)Aggregate Member

Contributions



Members (1) (2) (3)7/1/12 $444,953,351 $2,418,803,841 $1,163,197,690 $2,137,727,566 100.00% 69.98% 0.00%

7/1/11 434,353,581 2,240,031,414 1,252,140,684 2,173,255,647 100.00 77.63 0.00

7/1/10 439,239,135 1,914,386,462 1,318,735,661 2,190,654,958 100.00 91.49 0.00

7/1/09 427,713,716 1,998,329,812 1,567,215,952 2,268,272,056 100.00 92.10 0.00

7/1/08 417,037,087 1,745,461,874 1,586,619,949 2,343,170,793 100.00 100.00 11.39

7/1/07 405,941,434 1,477,965,756 1,542,724,623 2,368,209,888 100.00 100.00 31.39

ValuationDate



Benefits*


(1)Aggregate Member

Contributions



Members (1) (2) (3)7/1/12 $2,726,801,462 $16,780,025,399 $8,198,341,576 $21,549,327,079 100.00% 100.00% 24.91%

7/1/11 2,611,348,759 16,074,784,440 8,292,498,989 21,051,681,692 100.00 100.00 28.53

7/1/10 2,610,141,488 14,279,203,074 8,712,653,564 20,367,865,987 100.00 100.00 39.92

7/1/09 2,527,185,808 15,411,236,571 10,510,419,386 20,669,565,701 100.00 100.00 25.99

7/1/08 2,396,790,723 14,303,353,327 10,170,962,482 20,404,804,535 100.00 100.00 36.42

7/1/07 2,262,086,714 13,148,597,825 9,151,510,904 19,575,249,807 100.00 100.00 45.51

LOCAL EMPLOYERS

ValuationDate



Benefits*


(1)Aggregate Member

Contributions



Members (1) (2) (3)7/1/12 $3,171,754,813 $19,198,829,240 $9,361,539,266 $23,687,054,645 100.00% 100.00% 14.06%

7/1/11 3,095,702,340 18,314,815,854 9,544,639,673 23,224,937,339 100.00 100.00 19.53

7/1/10 3,049,380,623 16,193,589,536 10,031,389,225 22,558,520,945 100.00 100.00 33.05

7/1/09 2,954,899,524 17,409,566,383 12,077,635,338 22,937,837,757 100.00 100.00 21.31

7/1/08 2,813,827,810 16,048,815,201 11,757,582,431 22,747,975,328 100.00 100.00 33.05

7/1/07 2,668,028,148 14,626,563,581 10,694,235,527 21,943,459,695 100.00 100.00 43.47

TOTAL SYSTEM

* Actuarial Value including receivable amounts.




ANALYSIS OF PAST FINANCIAL EXPERIENCERECONCILIATION OF EMPLOYER CONTRIBUTION RATES

STATE

Valuation YearJuly 1,2012

July 1,2011

July 1,2010

July 1,2009

July 1,2008

July 1,2007


Net Change Due to:Current New Entrants 0.31 0.22 0.15 0.17 0.18 0.10Excess Salary Increases (0.36) (0.43) (0.39) (0.64) (0.96) 0.16Assumption/Method Changes (1.51)### (2.44)## (4.41)øø 0.00 1.20 0.00COLA 0.04 (0.25) (0.41) 0.31 (0.04) 0.15Active and Other Experience (1.43) (0.01) 0.41 0.01 0.62 0.76Retiree Experience 0.06 0.01 0.03 0.02 0.08 0.08Investment Loss/(Gain) 1.32 0.99 1.30 1.64 0.66 0.17Net Effect of Chapter 8* (1.13) 0.48 0.68 1.03 1.06 0.33Appropriation Act** 4.81 5.56 3.99 4.12 4.86 1.25Chapter 78, P.L. 2011 N/A N/A (1.67) N/A N/A N/AActual Contribution Rate• Prior to Reflecting Chapter 1, P.L. 2010 76.94%ø 74.83%ø 70.70%ø 71.02%ø 64.36%ø 56.70%ø

• Reflecting Chapter 1, P.L. 2010 32.98%ø 21.38%ø 10.10%ø N/A N/A N/A






July 1,2011

July 1,2010

July 1,2009

July 1,2008

July 1,2007


Net Change Due to:Current New Entrants 0.08 0.07 0.21 0.15 0.12 0.13Excess Salary Increases (0.40) (0.47) (0.42) (0.70) 0.30 0.17Assumption/Method Changes (0.90)### (0.05)## 0.66øø 0.00 2.73 0.00COLA 0.04 (0.30) (0.50) 0.40 (0.06) 0.24Active and Other Experience 1.18 2.47 1.83 1.97 1.13 1.10Retiree Experience 0.07 0.01 0.04 0.03 0.12 0.12Investment Loss/(Gain) 1.59 1.20 1.68 2.29 0.80 0.05Net Effect of Chapter 8* (1.77) (2.00) (1.89) (1.79) (1.66) (1.55)Chapter 108 0.00 0.00 0.00 0.00 0.00 0.00Chapter 78, P.L. 2011 N/A N/A (8.73) N/A N/A N/AActual Contribution Rate# 23.90%ø 24.01%ø 23.08%ø 30.20%ø 27.85%ø 24.37%ø

LOCAL EMPLOYERS

* Net effect of the change in the calculation of the July 1, 1998 actuarial value of System assets and elimination of the LocalEmployers’ accrued liability contribution for the period ending June 30, 1997.

** Net change for July 1, 2011 and July 1, 2012 are due to the provisions of Chapter 1, P.L. 2010. Net change due to AppropriationAct for July 1, 2010 includes 0.17% change due to the Fiscal Year 2010 Appropriation Act, 0.15% change due to the Fiscal Year2011 Appropriation Act and 3.67% for the Fiscal Year 2012 Appropriation Act. Net change due to Appropriation Act for July 1, 2009includes 0.26% change due to the Fiscal Year 2009 Appropriation Act, 0.08% change due to the Fiscal Year 2010 AppropriationAct and 3.78% for the Fiscal Year 2011 Appropriation Act. Net change due to Appropriation Act for July 1, 2008 includes 1.63%change due to the Fiscal Year 2009 Appropriation Act and 3.23% change due to the Fiscal Year 2010 Appropriation Act.

# Includes rates attributable to Chapter 204 requirement which is billed to specific locations.

## Net effect of the Board approved revised demographic assumptions based on the June 30, 2011 experience investigations and theTreasurer approved revised economic assumptions.

### Net effect of the Board approved revised demographic assumptions based on the Treasurer approved revised economic assump-tions.

Ø Excludes contribution rates payable to the Non-Contributory Group Insurance Premium Fund. For State, the contribution rates are1.41% for 2012, 1.64% for 2011, 1.53% for 2010, 1.46% for 2009, 1.47% for 2008 and 1.47% for 2007. For Local, the contribu-tion rates are .86% for 2012, 1.00% for 2011, .85% for 2010, 1.20% for 2009, 1.22% for 2008 and 1.25% for 2007.

ØØ Due to the State’s decision to reduce the lag period between the valuation year and the contribution from three years to two years.



Enrollment is restricted to eligible policemen andfiremen who are permanent and full-time and whopass the physical and mental fitness requirements.The maximum enrollment age is 35.

2. DEFINITIONS

Plan Year: The 12-month period beginning on July1 and ending on June 30.

Credited Service: A year of service is credited foreach year an employee is a Member of theRetirement System plus service, if any, covered bya prior service liability.

Average Final Compensation (AFC): The aver-age annual compensation for the three consecutiveyears of Service immediately preceding retirementor the highest three consecutive fiscal years ofMembership Service.

Compensation: Base salary upon which contribu-tions by a Member to the Annuity Savings Fundwere based in the last year of Service. ForAccidental Death, benefits are computed at theannual rate of salary. In accordance with Chapter 1,P.L. 2010, for members hired on or after May 22,2010, compensation cannot exceed the annualmaximum wage contribution base for SocialSecurity pursuant to the Federal InsuranceContribution Act.

Final Compensation (FC): Annual compensationreceived by the member in the last 12 months ofCredited Service preceding his retirement. Inaccordance with Chapter 1, P.L. 2010, for membershired on or after May 22, 2010, FC means the aver-age annual compensation for the three fiscal yearsof membership providing the largest benefit.

Accumulated Deductions: The sum of allamounts deducted from the compensation of aMember or contributed by him or on his behalf withoutinterest.

3. BENEFITS

Service Retirement: Eligibility means age 55 or 20

years of credited service for an employee who wasa member of the Retirement System as of January18, 2000 and age 55 for an employee who becamea member of the Retirement System after January18, 2000; mandatory at age 65 (except that a mem-ber hired prior to January 1, 1987 may remain amember of the System until the member attains theearlier of age 68 or 25 years of service). Benefit isan annual retirement allowance equal to a memberannuity plus an employer pension which togetherequals the greater of:

(i) 1/60th of FC for each year of Credited Service; or

(ii) 2% of FC multiplied by years of CreditedService up to 30 plus 1% of FC multiplied byyears of Service over 30. (Prior to January 18,2000, this benefit was based on AFC ratherthan FC. However, Policy Memorandum 4-2000, which interpreted the provisions ofChapter 428, P.L. 1999, authorized the changein the salary basis).

(iii) 50% of FC if the member has 20 or more yearsof Credited Service.

Chapter 428 also requires that, in addition to the50% of FC benefit, any member as of January 18,2000 who will have 20 or more years of CreditedService and is required to retire upon attaining age65 (except that a member hired prior to January 1,1987 may remain a member of the System until themember attains the earlier age of 68 or 25 years ofcreditable service), shall receive an additional ben-efit equal to 3% of FC for each year of CreditedService over 20 years but not over 25 years.

Special Retirement: After completion of 25 yearsof Credited Service. The annual retirement benefitis equal to a member annuity plus an employerpension which together equal 65% of FC plus 1%of FC for each year of Credited Service over 25.Effective for members hired after June 28, 2011,the annual retirement benefit is equal to a memberannuity plus an employer pension which togetherequal 60% of FC plus 1% of FC for each year ofcredited service over 25. There is a maximum ben-



BRIEF SUMMARY OF THE BENEFIT AND CONTRIBUTION PROVISIONS AS INTERPRETED FOR VALUATION PURPOSES


efit of 70% of FC (65% of FC for members hiredafter June 28, 2011) except for those members with30 or more years of Credited Service on June 30,1979.

Vested Termination:a. Eligible upon termination of service prior to age

55 and prior to 10 years of Service. The bene-fit equals a refund of Accumulated Deductionsless any outstanding loans.

b. Eligible upon termination of service prior to age55 and after 10 years of Service (but less than20 years if a member on or prior to January 18,2000 or less than 25 years of service if a mem-ber after January 18, 2000). The benefit is adeferred retirement benefit, commencing atage 55, equal to a member annuity plus anemployer pension which together provide aretirement allowance equal to 2% of FC multi-plied by years of Credited Service, up to 30plus 1% of FC multiplied by years of creditedservice over 30.

Death Benefits:

ORDINARY DEATH BENEFIT - LUMP SUM

(1) If a member dies prior to retirement, the benefitpayable is as follows:

A lump sum amount equal to 3-1/2 times FCpayable to the member’s beneficiary.

(2) After retirement but prior to age 55, the benefit is asfollows:

(i) For death while a Disabled Retiree the benefitis equal to 3-1/2 times Compensation.

(ii) For death while a Deferred Retiree the benefitis equal to his Accumulated Deductions.

(iii) For death while a Retiree who has completed20 years of Service, the benefit is equal to 1/2times FC.

(3) After retirement and after age 55, the benefitpayable is equal to 1/2 times Compensation. (Note:If a Member is not disabled, 10 years of CreditedService is required for Members enrolling after July1, 1971.)

ORDINARY DEATH BENEFIT - SURVIVOR ANNUITY

(1) If a member dies prior to retirement, the benefit

payable to a widow (widower) is equal to 50% of FC(20% of FC payable to one child, 35% of FCpayable to two children or 50% of FC payable tothree or more children if there is no surviving widowor widower or if the widow or widower dies orremarries or 25% of FC payable to one parent or40% of FC payable to two parents if no survivingwidow, widower, or child. If no widow, widower,child, or parent, the benefit payable to a beneficiaryis the aggregate Accumulated Contributions at thetime of death).

(2) For any member who retired after December 18,1967, the benefit payable to widow (widower) isequal to 50% of FC plus 15% of FC for one childand 25% of FC for two or more children.

If no spouse, or spouse remarries, the benefit isequal to 20% of FC for one child, 35% for two chil-dren, and 50% for three or more children.

There is also a minimum benefit payable to widows(widowers) of $4,500 a year.

(3) For any member who retired with an AccidentalDisability Benefit, the benefit payable is equal to$4,500 a year to the widow (widower). If there is nowidow (widower) the benefit payable is $600 a yearfor 1 child, $960 a year for 2 children, and $1,500 ayear for 3 or more children. The benefit for childrenis payable until age 18.

ACCIDENTAL DEATH BENEFIT

A death while active resulting from injuries receivedfrom an accident during performance of duty is eligiblefor a lump sum equal to the Accumulated Deductionsplus 3-1/2 times Compensation plus an annuity benefitpayable is as follows:

(i) The benefit to a widow or widower is equal to 70%of Compensation.

(ii) The benefit, when there is no spouse, or spouse isremarried, is equal to 20% of Compensation forone child, 35% for two children, 50% for three ormore children. The benefit is payable while the chil-dren are under age 18, or until age 24 if they arefull-time students, or it is payable for life if they aredisabled.

(iii) The benefit, when there is no spouse or children, isequal to 25% of Compensation for one parent and40% for two parents.





(iv) The benefit, when there is no relation as statedabove, is equal to the Accumulated Deductions andis payable to a beneficiary or to the Member’sestate. This is also the minimum benefit payableunder (i), (ii) and (iii).

Disability Benefits:

ORDINARY DISABILITY RETIREMENT

A Member is eligible for Ordinary Disability Retirementif he (she) has 4 years of Service and is totally and per-manently incapacitated from the performance of usualor available duties. The benefit is equal to the greaterof:

(i) 1-1/2% of FC times the number of years of Credited Service; or

(ii) 40% of FC.

In addition, a member who has at least 20 years butless than 25 years of Credited Service and who isrequired to retire upon application by the employeron or after January 18, 2000 shall receive a bene-fit equal to a member annuity plus an employerpension which together provide a total retirementallowance equal to 50% of FC plus 3% of FC mul-tiplied by the number of years of Credited Serviceover 20 but not over 25.

ACCIDENTAL DISABILITY RETIREMENT

A Member is eligible upon total and permanentincapacitation from the performance of usual oravailable duties as a result of injury during the per-formance of regular duties. The benefit payable isequal to a Member annuity plus an employer pen-sion which together equals 2/3 of theCompensation at date of injury.

SPECIAL DISABILITY RETIREMENT

A member is eligible for Special DisabilityRetirement if he (she) has 5 years of CreditedService, is under age 55, and has received a hearttransplant. The benefit payable is equal to aMember annuity plus an employer pension whichtogether equals 50% of FC.

4. MEMBER CONTRIBUTIONS

Each member contributes 8.5% of Compensation.Chapter 78, P.L. 2011 increased the MemberContributions from 8.5% to 10% of Compensationeffective October 2011.





April 3, 2013

Board of TrusteesState Police Retirement System

of New Jersey



An actuarial valuation of the State Police Retirement System is performed annually to measurethe ongoing costs of the System and the progress towards the funding goals of the System overtime. In general, the financial goals of the State Police Retirement System are a pattern of con-tributions, which is sufficient to cover the normal cost of the System plus the contributiontowards the unfunded accrued liability.

In accordance with the New Jersey statutes, employers are required to make two contributionsto the System, a normal contribution and an accrued liability contribution. The normal contribu-tion for basic allowances and cost of living adjustments (COLA’s) is defined under the ProjectedUnit Credit funding method as the present value of the benefits accruing during the currentyear. Prior to the July 1, 2010 valuation, the unfunded accrued liability contribution for basicallowances and COLA’s was determined as a level percentage of pay required to amortize theunfunded accrued liability over 30 years in annual payments increasing by 4.0% per year. Thefunding reform provisions of Chapter 78, P.L. 2011 changed the methodology used to amortizethe unfunded accrued liability. Beginning with the July 1, 2010 actuarial valuation, the accruedliability contribution shall be computed so that if the contribution is paid annually in level dol-lars, it will amortize the unfunded accrued liability over an open 30 year period. Beginning withthe July 1, 2019 actuarial valuation, the accrued liability contribution shall be computed so thatif the contribution is paid annually in level dollars it will amortize the unfunded accrued liabilityover a closed 30 year period (i.e., for each subsequent actuarial valuation, the amortizationperiod shall decrease by one year). Beginning with the July 1, 2029 actuarial valuation whenthe remaining amortization period reaches 20 years, any increase or decrease in the unfund-ed accrued liability as a result of actuarial losses or gains for subsequent valuation years shallserve to increase or decrease, respectively, the amortization period for the unfunded accruedliability, unless an increase in the amortization period will cause it to exceed 20 years. If anincrease in the amortization period as a result of actuarial losses for a valuation year wouldexceed 20 years, the accrued liability contribution shall be computed for the valuation yearusing a 20 year amortization period.

The valuation reflects the funding reform provisions of Chapter 1, P.L. 2010. Chapter 1, P.L.2010 allows the State Treasurer to phase in to the full recommended pension contribution. TheState would be in compliance with its funding requirement provided the State makes a paymentof at least 1/7th of the full contribution, as computed by the actuaries, in the State fiscal yearcommencing July 1, 2011 and makes a payment in each subsequent fiscal year that increasesby at least an additional 1/7th until payment of the full contribution is made in the seventh fis-cal year and thereafter.

The valuation reflects the final State contribution under Chapter 1, P.L. 2010 for fiscal year2012, which allowed the State Treasurer to reduce the State normal and accrued liability con-tributions for fiscal year 2012 of $89,671,744 to $12,810,000. In addition, the fiscal year 2013recommended State pension contribution of $89,535,903 has been reduced to $25,581,686and has been recognized as a receivable contribution for purposes of this valuation. Thisamount may be subject to change per the requirements of the State’s fiscal year 2013 spend-ing plan.


A contribution of $106,977,623 is recommended for the fiscal year beginning July 1, 2013. Thisamount is comprised of an unfunded accrued liability payment of $67,962,316 plus a normalcontribution of $39,015,307. However, the provisions of Chapter 1, P.L. 2010 allow the StateTreasurer to reduce the recommended pension contribution for fiscal year 2014 to no less than3/7th of the recommended pension contribution. Accordingly, the Chapter 1, P.L. 2010 minimumrequired pension contribution is $45,847,553. This is comprised of an unfunded accrued liabil-ity payment of $29,126,707 and a normal contribution of $16,720,846. This amount may be sub-ject to change per the requirements of the State’s fiscal year 2014 spending plan.

The underlying demographic data is maintained and provided by the New Jersey Division ofPensions and Benefits. The data is analyzed by Buck Consultants for internal completenessand consistency and compared with the prior valuation data to again ensure consistency.

As required under Chapter 89, P.L. 1965 experience studies are performed once in every threeyear period. The valuation was prepared on the basis of the demographic assumptions thatwere determined from the July 1, 2008 – June 30, 2011 Experience Study and approved by theBoard of Trustees at the September 25, 2012 Board meeting. The Treasurer has recommend-ed a change in the economic assumptions used for the valuation. The rate of investment returnhas been revised from 7.95% per annum to 7.90% per annum. The assumed future salaryincreases have been revised to be 3.45% per annum for fiscal year ending 2012 through fiscalyear ending 2021 and 4.45% per annum for fiscal years ending 2022 and thereafter. Theseassumptions will remain in effect for valuation purposes until such time the Board or theTreasurer recommends revised assumptions.

The valuation cost method used is the projected unit credit method. This method essentiallyfunds the System’s benefits accrued to the valuation date. Experience gains and losses arerecognized in future accrued liability contributions. The asset valuation method used was a five-year average of market values with write-up. This method takes into account appreciation(depreciation) in investments in order to smooth asset values by averaging the excess of theactual over the expected income, on a market value basis, over a five-year period.

The valuation does not take into account any changes in U.S. equity prices and bond yields thathave occurred after the valuation date. Taking these into account may significantly change themarket and actuarial value of assets shown. The effect of these events on any funded ratiosshown, and on Retirement System calculations, is not known. Retirement System funding andfinancial accounting rules generally prohibit reflection of changes in assets and underlying eco-nomic conditions that occur after the valuation date.

The assumptions used to prepare the information required by Statements No. 25, No. 27 andNo. 50 of the Governmental Accounting Standards Board (GASB) were the same as those usedfor funding purposes.

In our opinion, the attached schedules of valuation results fairly represent the status of theState Police Retirement System and present an accurate view of historical data. The underly-ing assumptions and methods used for both funding and GASB disclosure purposes are con-sistent with the statutory specifications and represent a best estimate of the aggregate futureexperience of the System.

The following supporting schedules in the Actuarial Section were prepared by BuckConsultants:




• Solvency Test



• Summary of the Benefit and Contribution Provisions as Interpreted for Valuation Purposes

In addition, Buck Consultants prepared the “Schedule of Funding Progress” and the “Scheduleof Employer Contributions” in the Financial Section.

To the best of our knowledge, this information is complete and accurate. The valuation was per-formed by, and under the supervision of, independent qualified actuaries who are members ofthe American Academy of Actuaries with experience in performing valuations for public retire-ment systems.

The valuation was prepared in accordance with the principles of practice prescribed by theActuarial Standards Board and generally accepted actuarial procedures and methods. The cal-culations are based on the current provisions of the Retirement System, and on actuarialassumptions that are individually and in the aggregate internally consistent and reasonablebased on the actual experience of the Retirement System.


Buck Consultants




STATE OF NEW JERSEYDIVISION OF PENSIONS AND BENEFITSSTATE POLICE RETIREMENT SYSTEM


Section 32 of Chapter 89, P.L. 1965 of the New Jersey Statutes provides that once in every three-year period theactuary shall examine in detail the demographic experience of the members and beneficiaries of the State PoliceRetirement System to assure that the tables used for determining expected liabilities are consistent with recentexperience.

The demographic assumptions used for the July 1, 2012 actuarial valuation of the State Police Retirement Systemwere based on the results of the experience study, which covered the period from July 1, 2008 to June 30, 2011,which were approved by the Board of Trustees, and the revised economic assumptions, which were recommend-ed by the Treasurer.




Salary Increases: Salaries are assumed to increase by 3.45% per year for fiscal year ending 2012 through fiscalyear ending 2021 and 4.45% per year for fiscal years ending 2022 and thereafter.

Termination: Withdrawal rates vary by length of service. Illustrative rates are shown below:

Age

Lives Per Thousand

Less Than 5 Years of Service

Five to Nineteen Years of Service

25 5.0 0.030 5.0 4.035 8.3 1.040 0.0 1.545 0.0 2.050 0.0 0.0

Separations from Service: Representative mortality, disability, and retirement rates are as follows:

Age

Annual Rates of*Ordinary Death** Accidental

DeathOrdinary Disability

Accidental DisabilityMale Female

25 0.4% 0.2% 0.4% 0.6% 0.3%

30 0.4 0.3 0.5 0.9 0.5

35 0.6 0.5 0.5 2.4 1.9

40 0.9 0.7 0.5 2.5 2.1

45 1.2 1.1 0.6 3.1 2.1

50 1.7 1.7 0.9 5.4 2.2

* Per one thousand lives.

** RP-2000 Combined Healthy Male (set back 3 years) and RP-2000 Combined Healthy Female Mortality Tablesprojected on a generational basis from the base year of 2012 using Projection Scale AA. Rates shown aboveare unadjusted for Projection Scale AA.




Marriage: Husbands are assumed to be 3 years older than wives. Among the active population, 83.3% of partici-pants are assumed married. No children are assumed. Neither the percentage married nor number of childrenassumption is individually explicit but they are considered as a single combined assumption.

Valuation Method: Projected Unit Credit Method. This method essentially funds the System’s benefits accrued tothe valuation date. Experience gains and losses are recognized in future accrued liability contributions. In accor-dance with Chapter 78, P.L. 2011, beginning with the July 1, 2010 actuarial valuation, the accrued liability contribu-tion shall be computed so that if the contribution is paid annually in level dollars, it will amortize the unfunded accruedliability over an open 30 year period. Beginning with the July 1, 2019 actuarial valuation, the accrued liability contri-bution shall be computed so that if the contribution is paid annually in level dollars it will amortize the unfundedaccrued liability over a closed 30 year period (i.e., for each subsequent valuation, the amortization period shalldecrease by one year). Beginning with the July 1, 2029 actuarial valuation, when the remaining amortization periodreaches 20 years, any increase or decrease in the unfunded accrued liability as a result of actuarial losses or gainsfor subsequent valuation years shall serve to increase or decrease, respectively, the amortization period for theunfunded accrued liability, unless an increase in the amortization period will cause it to exceed 20 years. If anincrease in the amortization period as a result of actuarial losses for a valuation year would exceed 20 years, theaccrued liability contribution shall be computed for the valuation year using a 20 year amortization period.

Chapter 78, P.L. 2011 increased the member contributions from 7.5% to 9.0% of compensation. Based on discus-sions with the Division of Pension and Benefits, member contributions in excess of 7.5% of compensation shall notreduce the State normal cost contribution.

Asset Valuation Method: A five-year average of market values with write-up. (This method takes into accountappreciation (depreciation) in investments in order to smooth asset values by averaging the excess of the actualover the expected income, on a market value basis, over a five-year period.)

Deaths After Retirement: For healthy inactive members and beneficiaries of deceased members the RP-2000Combined Healthy Male (set back 3 years) and RP-2000 Combined Healthy Female Mortality tables projected ona generational basis from the base year of 2012 using Projection Scale AA. For disabled members the RP-2000Combined Healthy Male (set forward 5 years) and RP-2000 Combined Healthy Female Mortality (set forward 5years) tables are used. Illustrative rates of mortality unadjusted for Projection Scale AA are shown below:

Age

Lives Per ThousandRetired Members and

Beneficiariesof Deceased Members Disabled MembersMales Females Males Females

55 2.7 2.7 6.8 5.160 4.7 5.1 12.7 9.765 8.8 9.7 22.2 16.770 16.1 16.7 37.8 28.175 27.3 28.1 64.4 45.980 46.9 45.9 110.8 77.585 80.5 77.5 183.4 131.790 136.0 131.7 267.5 194.5




Rates of Retirement: Rates of retirement vary by length of service and age (if more than 24 years of service) with100% of those remaining at age 55 retiring at age 55. The rates are shown below:

Service Lives Per 10020 2.021 0.522 0.023 0.024 0.025 45.5

Greater than 25:(a) through age 42 5.0(b) ages 43-47 25.0(c) ages 48-53 30.0(d) age 54 55.0




ValuationDate


AverageAnnual




Allowance

7/1/12 256 $17,483,694 44 $1,557,365 3,030 $169,491,353 10.81% $55,938

7/1/11 232 14,848,311 66 2,030,490 2,818 152,950,538 10.14 54,276

7/1/10 107 6,656,153 40 1,345,937 2,652 138,873,702 3.97 52,366

7/1/09 119 7,458,400 54 1,593,106 2,585 133,573,198 7.53 51,672

7/1/08 155 9,823,122 61 1,709,085 2,520 124,219,225 8.44 49,293

7/1/07 130 7,185,755 42 1,173,986 2,426 114,548,588 8.19 47,217

* These values include beneficiaries in receipt but exclude deferred vested terminations.** The benefit amounts shown are the annualized benefits as of the valuation date and are not the actual benefits paid during the fiscal year.


Valuation Date


Annual Compensation

Average Compensation

% Increase (Decrease) in Average Compensation

7/1/12 2,721 $283,219,927 $104,086 7.56%

7/1/11 2,844 275,219,752 96,772 1.12

7/1/10 3,030 289,980,657 95,703 0.48

7/1/09 3,016 287,267,502 95,248 (0.14)

7/1/08 2,947 281,087,566 95,381 3.90

7/1/07 2,999 275,301,995 91,798 4.38

SOLVENCY TEST

ValuationDate


Net AssetsAvailable for

Benefits*

Percentage of Accrued Liabilities Covered

by Net Assets Available

(1) Aggregate Member

Contributions

(2) Current Retirees& Beneficiaries


Members (1) (2) (3)

7/1/12 $180,407,372 $1,822,707,659 $764,653,782 $1,995,388,133 100.00% 99.58% 0.00%

7/1/11 182,626,003 1,634,856,377 764,468,466 2,015,624,130 100.00 100.00 25.92

7/1/10 185,587,970 1,466,806,024 844,700,143 2,019,350,048 100.00 100.00 43.44

7/1/09 175,349,297 1,647,110,535 1,002,955,736 2,067,242,877 100.00 100.00 24.41

7/1/08 166,360,000 1,492,340,059 950464,810 2,136,006,509 100.00 100.00 50.22

7/1/07 160,384,261 1,399,050,008 926,214,961 2,101,672,160 100.00 100.00 58.54

*Actuarial value including receivable amounts.





July 1,2011

July 1,2010

July 1,2009

July 1,2008

July 1,2007

Effective Prior Year Contribution Rate 32.53%** 30.92%** 36.11%** 29.34%** 27.57%** 26.52%**

Net Change Due to:Current New Entrants 0.11 0.00 0.43 0.60 0.26 0.36

Excess Salary Increases 1.58 (0.64) (1.60) (0.87) (0.21) 0.14

Assumption/Method Changes 0.20 (1.75) N/A 2.41 N/A N/A

COLA 0.00 (0.39) (0.56) 0.43 (0.61) 0.28

Retiree Mortality 0.37 0.05 0.10 0.06 0.05 0.07

Active and Other Experience (0.88) 0.19 0.59 (0.20) (0.03) (0.55)

Investment Loss/(Gain) 1.87 1.61 1.90 2.66 0.86 (0.02)

Appropriation Act* 2.00 2.54 2.17 1.68 1.45 0.77

Chapter 78, P.L. 2011 N/A N/A (8.22) N/A N/A N/A

Actual Contribution Rate:

• Prior to Reflecting Chapter 1, P.L.2010 37.78%** 32.53%** 30.92%** 36.11%** 29.34%** 27.57%**

• Reflecting Chapter 1, P.L. 2010 16.18%** 9.30%** 4.42%** N/A N/A N/A

* Changes in 2011 and 2012 are due to the provisions of Chapter 1, P.L. 2010.

** Excludes contribution rates of 0.67% for 2012, 0.73% for 2011, 0.62% for 2010, 0.56% for 2009, 0.55% for 2008 and 0.65% for2007 for premiums payable to the Non-Contributory Group Insurance Premium Fund.



All members of the former State Police andBenevolent Fund: full-time commissioned officers,non-commissioned officers or troopers of theDivision of State Police. Membership is a conditionof employment.

2. DEFINITIONS


Service: Service rendered while a member asdescribed above.

Credited Service: A year is credited for each yearof service as an officer or trooper in the StatePolice. Service with other State RetirementSystems is included in the calculation of the retire-ment benefit at the rate of 1% of final compensationfor each year of service credit.

Compensation: Based on contractual salary,including maintenance allowance, received by themember in the last 12 months of credited servicepreceding retirement, termination or death.Compensation does not include individual salaryadjustments granted primarily in anticipation of theretirement or for temporary or extracurricular dutiesbeyond the ordinary work day. (Effective June 30,1996, Chapter 113, P.L. 1997 provided that theamount of compensation used for employer andmember contributions and benefits under the pro-gram cannot exceed the compensation limitation ofSection 401(a)(17) of the Internal Revenue Code;Chapter 1, P.L. 2010 provides that for membershired on or after May 22, 2010, the amount of com-pensation used for employer and member contribu-tions and benefits under the System cannot exceedthe annual maximum wage contribution base forSocial Security, pursuant to the Federal InsuranceContributions Act.)

Final Compensation: Average compensationreceived by member in last 12 months of creditedservice preceding retirement or death. Such termincludes the value of the member’s maintenanceallowance for the same period. (Chapter 1, P.L.2010 provides that for members hired on or afterMay 22, 2010, Final Compensation means theaverage annual salary for service for which contri-butions are made during any three fiscal years of

membership providing the largest possible benefitto the member or the member’s beneficiary . Suchterm shall include the value of the member’s main-tenance allowance.)

Aggregate Contributions: The sum of all amountsdeducted from the compensation of a member orcontributed by him or on his behalf. For contributionpurposes, compensation does not include over-time, bonuses, maintenance or any adjustmentsbefore retirement.

Adjusted Final Compensation: The amount ofcompensation or final compensation as adjusted,as the case may be, increased by the same per-centage increase which is applied in any adjust-ments of the compensation schedule of activemembers after the member’s death and before thedate on which the deceased member of the retire-ment system would have accrued 25 years of serv-ice under an assumption of continuous service, atwhich time that amount will become fixed.Adjustments to compensation or adjusted finalcompensation shall take effect at the same time asany adjustments in the compensation schedule ofactive members.

3. BENEFITS

Service Retirement: Mandatory retirement at age55. Voluntary retirement prior to age 55 with 20years of credited service. Benefit is an annualretirement allowance equal to the greater of (a), (b),or (c), as follows:

a. 50% of final compensation;

b. For members retiring with 25 or more years ofservice, 65% of final compensation, plus 1% foreach year of service in excess of 25 years, to amaximum of 70% of final compensation.

c. For members as of August 29, 1985 who wouldnot have 20 years of service by age 55, bene-fit as defined in (a) above. For members as ofAugust 29, 1985 who would have 20 years ofservice but would not have 25 years of serviceat age 55, benefit as defined in (a) above plus3% for each year of service in excess of 20years.

Vested Termination: Termination of service prior toage 55. Benefit for 10 to 20 years of Service - Refundof aggregate contributions, or a deferred life annuity


SUMMARY OF THE BENEFIT AND CONTRIBUTION PROVISIONS AS INTERPRETED FOR VALUATION PURPOSES


beginning at age 55 equal to 2% of final compensa-tion for each year of service up to 20 years.

Ordinary Death:

BEFORE RETIREMENT

Death of an active member of the plan. Benefit isequal to:

a. Lump sum payment equal to 3-1/2 times finalcompensation, plus

b. Spousal life annuity of 50% of final compensa-tion payable until spouse’s death or remarriage.If there is no surviving spouse, or upon death orremarriage, a total of 20%, 35% or 50% of finalcompensation payable to one, two or threedependent children, respectively. If there is nosurviving spouse (or dependent children), anamount equal to 25% or 40% of final compensa-tion to one or two dependent parents.

Minimum benefit: Aggregate contributions.

AFTER RETIREMENT

Death of a retired member of the plan. The benefitis equal to:

a. Lump sum of 50% of final compensation, plus

b. Spousal life annuity of 50% of final compensa-tion payable until spouse’s death or remarriage.If there is no surviving spouse, or upon deathor remarriage, a total of 20%, 35% or 50% offinal compensation payable to one, two or threedependent children, respectively.

Accidental Death: Death of an active member ofthe plan resulting during performance of duties.Benefit is equal to:

a. Lump sum payment equal to 3-1/2 times finalcompensation, plus

b. Spousal life annuity of 70% of final compensa-tion payable until spouse’s death. If there is nosurviving spouse, or upon death of the survivingspouse, a total of 20%, 35% or 50% of adjustedfinal compensation payable to one, two, or threedependent children, respectively. If there is nosurviving spouse or dependent children, 25% or40% of final compensation to one or two depend-ent parents.

Ordinary Disability Retirement: Mentally or phys-ically incapacitated for the performance of his usual

duty and of any other available duty in the Divisionof State Police and such incapacity is likely to bepermanent.

a. The benefit for members with less than fouryears of service is a refund of the member’saggregate contributions.

b. For members with at least four years of service,the benefit is an immediate life annuity equal to40% of final compensation plus 1-1/2% of finalcompensation for years of creditable service inexcess of 26-2/3.

c. For members who are forced to retire with 20but less than 25 years of service, the benefit is50% of the member’s final compensation plus3% of final compensation for each year of serv-ice in excess of 20 years, to a maximum of 65%of final compensation.

For death following disability retirement, a lumpsum equal to 3-1/2 times final compensation ifdeath occurs prior to age 55 or 1/2 of final compen-sation after age 55.

Accidental Disability Retirement: Totally and per-manently disabled as a direct result of a traumaticevent occurring during and as a result of his regu-lar or assigned duties. Benefit is an immediate lifeannuity equal to 2/3 of final compensation. Upondeath after disability retirement, lump sum benefitof 3-1/2 times final compensation if death occursbefore 55 and 1/2 times final compensation if deathoccurs after age 55.


Each member contributes 7.5% of Compensation.Chapter 78, P.L. 2011 increased MemberContributions from 7.5% to 9.0% of Compensationeffective October 2011.


SUMMARY OF THE BENEFIT AND CONTRIBUTION PROVISIONS, Continued


April 3, 2013

State House CommissionJudicial Retirement System

of New Jersey


Members of the Commission:

An actuarial valuation of the Judicial Retirement System is performed annually to measure theongoing costs of the System and the progress towards the funding goals of the System over time.In general, the financial goals of the Judicial Retirement System are a pattern of contributions,which is sufficient to cover the normal cost of the System plus the contribution towards theunfunded accrued liability.

In accordance with the New Jersey statutes, employers are required to make two contributions tothe System, a normal contribution and an accrued liability contribution. The normal contributionfor basic allowances and cost of living adjustments (COLA’s) is defined under the Projected UnitCredit funding method as the present value of the benefits accruing during the current year. Priorto the July 1, 2010 valuation, the unfunded accrued liability contribution for basic allowances andCOLA’s was determined as a level percentage of pay required to amortize the unfunded accruedliability over 30 years in annual payments increasing by 4.0% per year. The funding reform provi-sions of Chapter 78, P.L. 2011 changed the methodology used to amortize the unfunded accruedliability. Beginning with the July 1, 2010 actuarial valuation, the accrued liability contribution shallbe computed so that if the contribution is paid annually in level dollars, it will amortize the unfund-ed accrued liability over an open 30 year period. Beginning with the July 1, 2019 actuarial valua-tion, the accrued liability contribution shall be computed so that if the contribution is paid annuallyin level dollars it will amortize the unfunded accrued liability over a closed 30 year period (i.e., foreach subsequent actuarial valuation, the amortization period shall decrease by one year).Beginning with the July 1, 2029 actuarial valuation when the remaining amortization period reach-es 20 years, any increase or decrease in the unfunded accrued liability as a result of actuariallosses or gains for subsequent valuation years shall serve to increase or decrease, respectively,the amortization period for the unfunded accrued liability, unless an increase in the amortizationperiod will cause it to exceed 20 years. If an increase in the amortization period as a result of actu-arial losses for a valuation year would exceed 20 years, the accrued liability contribution shall becomputed for the valuation year using a 20 year amortization period.

The valuation reflects the funding reform provisions of Chapter 1, P.L. 2010. Chapter 1, P.L. 2010allows the State Treasurer to phase in to the full recommended pension contribution. The Statewould be in compliance with its funding requirement provided the State makes a payment of atleast 1/7th of the full contribution, as computed by the actuaries, in the State fiscal year commenc-ing July 1, 2011 and makes a payment in each subsequent fiscal year that increases by at leastan additional 1/7th until payment of the full contribution is made in the seventh fiscal year andthereafter.

The valuation reflects the final State contribution under Chapter 1, P.L. 2010 for fiscal year 2012,which allowed the State Treasurer to reduce the State normal and accrued liability contributionsfor fiscal year 2012 of $38,352,572 to $5,479,000. In addition, the fiscal year 2013 recommend-ed State pension contribution of $40,751,804 has been reduced to $11,643,372 and has beenrecognized as a receivable contribution for purposes of this valuation. This amount may be sub-ject to change per the requirements of the State’s fiscal year 2013 spending plan.

A contribution of $44,682,385 is recommended for the fiscal year beginning July 1, 2013. This is


comprised of an unfunded accrued liability payment of $27,716,084 and a normal contribution of$16,966,301. However, the provisions of Chapter 1, P.L. 2010 allows the State Treasurer to reducethe recommended pension contribution for fiscal year 2014 to no less than 3/7th of the recom-mended pension contribution. Accordingly, the Chapter 1, P.L. 2010 minimum required pensioncontribution is $19,149,594. This is comprised of an unfunded accrued liability payment of$11,878,322 and a normal contribution of $7,271,272. This amount may be subject to change perthe requirements of the State’s fiscal year 2014 spending plan.


As required under Chapter 140, P.L. 1973, experience studies are performed once in every threeyear period. The valuation was prepared on the basis of the demographic assumptions that weredetermined from the July 1, 2008 – June 30, 2011 Experience Study and approved by the StateHouse Commission. The Treasurer has recommended a change in the economic assumptionsused for the valuation. The rate of investment return has been revised from 7.95% per annum to7.90% per annum. The assumed future salary increases have been revised to be 2.50% perannum for fiscal year ending 2012 through fiscal year ending 2021 and 3.50% per annum for fis-cal years ending 2022 and thereafter. These assumptions will remain in effect for valuation pur-poses until such time the State House Commission or the Treasurer recommends revisedassumptions.

The valuation cost method used is the projected unit credit method. This method essentially fundsthe System’s benefits accrued to the valuation date. Experience gains and losses are recognizedin future accrued liability contributions. The asset valuation method used was a five-year averageof market values with write-up. This method takes into account appreciation (depreciation) ininvestments in order to smooth asset values by averaging the excess of the actual over theexpected income, on a market value basis, over a five-year period.

The valuation does not take into account any changes in U.S. equity prices and bond yields thathave occurred after the valuation date. Taking these into account may significantly change themarket and actuarial value of assets shown. The effect of these events on any funded ratiosshown, and on Retirement System calculations, is not known. Retirement System funding andfinancial accounting rules generally prohibit reflection of changes in assets and underlying eco-nomic conditions that occur after the valuation date.


In our opinion, the attached schedules of valuation results fairly represent the status of theJudicial Retirement System and present an accurate view of historical data. The underlyingassumptions and methods used for both funding and GASB disclosure purposes are consistentwith the statutory specifications and represent a best estimate of the aggregate future experienceof the System.





• Solvency Test





To the best of our knowledge, this information is complete and accurate. The valuation was per-formed by, and under the supervision of, independent qualified actuaries who are members of theAmerican Academy of Actuaries with experience in performing valuations for public retirementsystems.

The valuation was prepared in accordance with the principles of practice prescribed by theActuarial Standards Board and generally accepted actuarial procedures and methods. The calcu-lations are based on the current provisions of the Retirement System, and on actuarial assump-tions that are individually and in the aggregate internally consistent and reasonable based on theactual experience of the Retirement System.


Buck Consultants







Section 31 of Chapter 140, P.L. 1973 of the New Jersey Statutes provides that once in every three-year period theactuary shall examine in detail the demographic experience of the members and beneficiaries of the JudicialRetirement System to assure that the tables used for determining expected liabilities are consistent with recentexperience.

The demographic assumptions used for the July 1, 2012 actuarial valuation of the Judicial Retirement System werebased on the results of the experience study, which covered the period from July 1, 2008 to June 30, 2011, whichwere approved by the State House Commission, and the revised economic assumptions, which were recommend-ed by the Treasurer.




Salary Increases: Salaries are assumed to increase by 2.50% per year for fiscal year ending 2012 through fiscalyear ending 2021 and 3.50% per year for fiscal years ending 2022 and thereafter.

Separations From Service: Representative mortality and disability rates are as follows:

Age

Lives per ThousandDeath

DisabilityMale Female30 0.38 0.22 0.2235 0.44 0.35 0.2640 0.77 0.55 0.3345 1.08 0.85 0.6450 1.51 1.33 1.1455 2.14 2.02 1.9760 3.62 3.48 3.2665 6.75 6.66 4.73

* RP-2000 Combined Healthy Male and RP-2000 Combined Healthy Female Mortality Tables (set back 5 yearsfor males and 3 years for females) projected on a generational basis from the base year of 2012 usingProjection Scale AA. The above rates are unadjusted for Projection Scale AA.





Deaths After Retirement: RP-2000 Combined Healthy Mortality Tables (set back 5 years for males and 3 yearsfor females) for service retirement and beneficiaries of former members projected on a generational basis from thebase year of 2012 using Projection Scale AA.The RP-2000 Disability Mortality Tables (set forward 2 years for malesand females) are used to value disabled retirees. Representative values of the annual rates of mortality unadjust-ed for Projection Scale AA are as follows:

Retirement:It was assumed that the probability of retirement at age 65 for those judges who have 12 or more yearsof judicial service at age 65 is at 25% per year. In addition, retirement for members who have attained age 60 with20 years of judicial service or attained age 65 with 15 years judicial service is at 30% at age 60, 25% at age 65and 20% for all other ages between ages 60 and 70. At age 70, all remaining active members are assumed to retire.

Marriage: Husbands are assumed to be 3 years older than wives. Among the active population, 90% of partici-pants are assumed married. No children are assumed. Neither the percentage married nor the number of childrenassumption is individually explicit but are considered reasonable as a single combined assumption.

Valuation Method: Projected Unit Credit Method. This method essentially funds the System’s benefits accrued tothe valuation date. Experience gains and losses are recognized in future accrued liability contributions. In accor-dance with Chapter 78, P.L. 2011, beginning with the July 1, 2010 actuarial valuation, the accrued liability contribu-tion shall be computed so that if the contribution is paid annually in level dollars, it will amortize the unfundedaccrued liability over an open 30 year period. Beginning with the July 1, 2019 actuarial valuation, the accrued lia-bility contribution shall be computed so that if the contribution is paid annually in level dollars, it will amortize theunfunded accrued liability over a closed 30 year period (i.e., for each subsequent actuarial valuation the amortiza-tion period shall decrease by one year.) Beginning with the July 1, 2029 actuarial valuation, when the remainingamortization period reaches 20 years, any increase or decrease in the unfunded accrued liability as a result of actu-arial losses or gains for subsequent valuation years shall serve to increase or decrease, respectively, the amorti-zation period for the unfunded accrued liability, unless an increase in the amortization period will cause it to exceed20 years. If an increase in the amortization period as a result of actuarial losses for a valuation year would exceed20 years, the accrued liability contribution shall be computed for the valuation year using a 20 year amortizationperiod.

Chapter 78, P.L. 2011 increased the member contributions by 9% of salary, phased-in over a seven year period.Based on discussions with the Division of Pensions and Benefits, the increase in member contributions due toChapter 78, P.L. 2011 shall not reduce the State’s normal cost contribution.

Asset Valuation Method: A five year average of market values with write-up was used. This method takes intoaccount appreciation (depreciation) in investments in order to smooth asset values by averaging the excess of theactual over the expected income, on a market value basis, over a five-year period.

Age

Lives Per ThousandRetired Members and Beneficiaries

of Deceased Members Disabled MembersMales Females Males Females

55 2.14 2.02 38.03 18.6560 3.62 3.48 44.98 24.0865 6.75 6.66 54.45 31.3270 12.74 12.16 69.41 42.8575 22.21 20.66 92.15 59.5480 37.83 34.11 121.88 82.3085 64.37 56.29 155.23 114.5190 110.76 96.34 216.61 159.92





ValuationDate


AverageAnnual




Allowance

7/1/12 34 $3,723,186 21 $1,423,636 535 $46,167,613 5.24% $86,295

7/1/11 41 3,699,618 24 1,442,965 522 43,868,063 6.35 84,038

7/1/10 47 4,424,782 24 1,659,228 505 41,250,479 7.22 81,684

7/1/09 38 3,502,225 21 1,605,240 482 38,472,184 7.91 79,818

7/1/08 38 3,186,664 24 1,700,472 465 35,650,855 5.20 76,669

7/1/07 27 2,361,097 13 790,746 451 33,889,262 7.52 75,142

* These values include beneficiaries in receipt but exclude deferred vested terminations.** The benefit amounts shown are the annualized benefits as of the valuation date and are not the actual benefits paid during the fiscal year.


Valuation Date


Annual Compensation

Average Compensation

% Increase(Decrease) in Average Compensation

7/1/12 407 $67,497,660 $165,842 (0.16)%

7/1/11 406 67,437,125 166,101 0.01

7/1/10 432 71,746,413 166,080 (0.07)

7/1/09 422 70,133,372 166,193 5.17

7/1/08 425 67,159,516 158,022 5.36

7/1/07 421 63,144,685 149,987 5.60

ValuationDate



Benefits*



Contributions



Members (1) (2) (3)

7/1/12 $19,799,227 $417,423,315 $167,958,092 $290,191,842 100.00% 64.78% 0.00%

7/1/11 18,353,365 394,760,527 172,586,895 310,724,782 100.00 74.06 0.00

7/1/10 17,967,938 354,390,110 182,182,355 329,030,387 100.00 87.77 0.00

7/1/09 17,288,107 364,446,307 212,308,961 355,522,646 100.00 92.81 0.00

7/1/08 16,312,046 336,317,176 200,655,425 383,958,713 100.00 100.00 15.61

7/1/07 15,917,212 319,653,218 189,399,900 391,321,939 100.00 100.00 29.44

*Actuarial value including receivable amounts.

SOLVENCY TEST






July 1,2011

July 1,2010

July 1,2009

July 1,2008

July 1,2007

Effective Prior Year Contribution Rate 60.43%** 53.45%** 49.41%** 42.97%** 41.32%** 38.26%**

Net Change Due to:Current New Entrants 1.73 0.20 2.62 1.52 1.47 0.52

Excess Salary Increases (0.97) (1.37) (1.38) (0.15) (0.02) 0.09


COLA N/A (0.19) (0.46) 0.29 (0.24) 0.25

Retiree Mortality 0.12 0.04 (0.04) 0.01 0.05 0.18

Active and Other Experience (1.05) 6.37 (1.46) 0.02 (2.40) 0.71


Appropriation Act* 3.81 4.43 2.94 2.40 2.09 1.15

Chapter 78, P.L. 2011 N/A N/A 0.40 N/A N/A N/A

Actual Contribution Rate:

• Prior to Reflecting Chapter 1, P.L. 2010 66.20%** 60.43%** 53.46%** 49.41%** 42.97%** 41.32%**

• Reflecting Chapter 1, P.L. 2010 28.37%** 17.27%** 7.64%** N/A N/A N/A

* Changes in 2011 and 2012 are due to the provisions of Chapter 1, P.L. 2010.

** Excludes contribution rates of 1.29% for 2012, 1.34% for 2011, 1.34% for 2010, 1.23% for 2009, 1.65% for 2008 and 1.14% for2007 for premiums payable to the Non-Contributory Group Insurance Premium Fund.



Chief Justice and associate justices of theSupreme Court, judges of the Superior Court andtax courts of the State of New Jersey.

2. DEFINITIONS


Service: A year is credited for each year of serviceas a public employee in the State of New Jersey.Any service, for which member did not receiveannual salary of at least $500, shall be excluded.

Final Salary: Annual salary received by the mem-ber at the time of retirement or other termination ofservice. (Effective June 30, 1996, Chapter 113, P.L.1997 provided that the amount of compensationused for employer and member contributions andbenefits under the program cannot exceed thecompensation limitation of Section 401(a)(17) ofthe Internal Revenue Code).

Accumulated Deductions: The sum of allamounts deducted from the compensation of amember or contributed by him or on his behalf.

Retirement Allowance: Pension derived from con-tributions of the State plus the annuity derived fromemployee contributions.

3. BENEFITS

Service Retirement:

a. Mandatory retirement at age 70. Voluntaryretirement prior to age 70 as follows:

(1) Age 70 and 10 years of judicial service;

(2) Age 65 and 15 years of judicial service; or

(3) Age 60 and 20 years of judicial service.

Benefit is an annual retirement allowanceequal to 75% of final salary.

b. Age 65 while serving as a judge, 5 consecutiveyears of judicial service and 15 years in theaggregate of public service; or

Age 60 while serving as a judge, 5 consecutiveyears of judicial service and 20 years in theaggregate of public service.

Benefit is an annual retirement allowanceequal to 50% of final salary.

c. Age 60 while serving as a judge, 5 consecutive

years of judicial service and 15 years in theaggregate to public service. Benefit is an annu-al retirement allowance equal to 2% of finalsalary for each year of public service up to 25years plus 1% of final salary for each year inexcess of 25 years.

d. Age 60 while serving as a judge. Benefit is anannual retirement allowance equal to 2% offinal salary for each year of judicial service upto 25 years plus 1% for each year in excess of25 years.

Early Retirement: Prior to age 60 while serving asa judge, 5 consecutive years of judicial service and25 or more years in the aggregate of public service.Benefit is an annual retirement allowance equal to2% of final salary for each year of public service upto 25 years plus 1% of final salary for each year ofpublic service in excess of 25 years, actuariallyreduced for commencement prior to age 60.

Vested Termination: Termination of service priorto age 60, with 5 consecutive years of judicial serv-ice and 10 years in the aggregate of public service.Benefit is a refund of accumulated deductions, or adeferred life annuity beginning at age 60 equal to2% of final salary for each year of public service upto 25 years, plus 1% for service in excess of 25years.

Death Benefits:

BEFORE RETIREMENT: Death of an active mem-ber of the plan. Benefit is equal to:

a. Lump sum payment equal to 1-1/2 times finalsalary, plus

b. Spousal life annuity of 25% of final salarypayable until spouse’s remarriage plus 10%(15%) to one (two or more) dependent child(children). If there is no surviving spouse, orupon death or remarriage, a total of 15% (20%,30%) of final salary payable to one (two, threeor more) dependent child (children). If there isno surviving spouse (or dependent children),20% or 30% of final salary to one or twodependent parents.

AFTER RETIREMENT: Death of a retired memberof the plan. Benefit is equal to:

a. Lump sum of 25% of final salary for a memberretired under normal or early retirement. If amember were receiving a disability benefit, a





lump sum 1-1/2 times final salary if deathoccurred before the member attained age 60and ¼ times final salary if death occurred afterage 60, plus

b. Spousal life annuity of 25% of final salarypayable until spouse’s remarriage plus 10%(15%) to one (two or more) dependent child(children). If there is no surviving spouse, or upon death or remarriage, a total of 15% (20%,30%) of final salary payable to one (two, threeor more) dependent child (children).

Disability Retirement: Physically or otherwiseincapacitated for a full and efficient service to Statein his judicial capacity and such incapacity is likelyto be permanent. Benefit is an annual retirementallowance of 75% of final salary.


Any member enrolled prior to January 1, 1996 con-tributes 3% of the difference between currentsalary and salary for that position on January 18,1982. Members enrolled on and after January 1,1996 contribute 3% of their full salary.

Chapter 78, P.L. 2011 increased MemberContributions by 9% of salary phased-in over aperiod of seven years beginning October 2011.(The additional 9% of salary will be fully phased-inin July 2017.)

(a) For members enrolled prior to January 1, 1996:

(1) Member Contributions of 9% (phased-inover a period of seven years beginningOctober 2011) of the salary for that posi-tion on January 18, 1982.

(2) Member Contributions increase from 3% to12% (phased-in over a period of sevenyears beginning October 2011) of the dif-ference between current salary and salaryfor that position on January 18, 1982.

(b) For members enrolled on or after January 1,1996, Member Contributions increase from 3%to 12% of full salary phased-in over a periodof seven years beginning October 2011.





April 3, 2013

CommissionConsolidated Police and Firemen’s Pension Fund

of New Jersey



An actuarial valuation of the Consolidated Police and Firemen’s Pension Fund is performed annu-ally to measure the ongoing costs of the Fund and the progress towards the funding goals of theFund over time. Since the Pension Fund is closed to new entrants and there are no active partici-pants, the financial goals of the Consolidated Police and Firemen’s Pension Fund are to ensurethat the combination of future State appropriations and current Trust assets, both projected forwardwith expected investment earnings, are sufficient to provide for all future benefit payments.

The unfunded accrued liability for basic allowances was initially determined as of June 30, 1990and was to be amortized over a nine-year period. However, the provisions of Chapter 115, P.L.1997 of the Pension Security Legislation permitted the State to pay off the unfunded accrued lia-bilities from the proceeds of pension obligation bonds.

A contribution of $864,041 is recommended for the fiscal year beginning July 1, 2013. The normalcost contribution is $0 and the unfunded accrued liability contribution is $864,041. As noted above,the latest unfunded accrued liability payment schedule required the amortization of any plan gainsor losses over the remainder of the nine-year period that began on June 30, 1991. Without addi-tional guidance, we have assumed the immediate payment of any unfunded accrued liability.

The recommended contribution for the fiscal year beginning July 1, 2013 was based on the methoddescribed above using an interest rate of 2.00% per annum. In accordance with actuarial standardsof practice, the mortality assumption for service retirements and beneficiaries was updated to theRP-2000 Combined Healthy Mortality Tables projected on a generational basis using ProjectionScale AA. The asset valuation method used was a five-year average of market values with write-up. This method takes into account appreciation (depreciation) in investments in order to smoothasset values by averaging the excess of the actual over the expected income, on a market valuebasis, over a five-year period.


The valuation does not take into account any changes in U.S. equity prices and bond yields thathave occurred after the valuation date. Taking these into account may significantly change the mar-ket and actuarial value of assets shown. The effect of these events on any funded ratios shown,and on Fund calculations, is not known. The Fund’s funding and financial accounting rules gener-ally prohibit reflection of changes in assets and underlying economic conditions that occur after thevaluation date.


In our opinion, the attached schedules of valuation results fairly represent the status of theConsolidated Police and Firemen’s Pension Fund and present an accurate view of historical data.


The underlying assumptions and methods used for both funding and GASB disclosure purposesare consistent with the statutory specifications and represent a best estimate of the aggregatefuture experience of the Fund.





• Solvency Test

• Analysis of Past Financial Experience Reconciliation of Unfunded Accrued Liability/(Surplus)




The valuation was prepared in accordance with the principles of practice prescribed by theActuarial Standards Board and generally accepted actuarial procedures and methods. The calcu-lations are based on the current provisions of the Fund, and on actuarial assumptions that are indi-vidually and in the aggregate internally consistent and reasonable based on the actual experienceof the Fund.


Buck Consultants








Valuation Interest Rate: 2.00% per annum, compounded annually for development of costs.

Deaths After Retirement: RP-2000 Combined Healthy Mortality Tables for service retirements and beneficiaries pro-jected on a generational basis from the base year of 2012 using Projection Scale AA. Special mortality tables are usedfor the period after disability retirement with no provisions made for mortality improvement after the valuation date.Representative values of the assumed annual rates of mortality unadjusted for Projection Scale AA for current retireesare as follows:

Marriage: Males are assumed to be 4 years older than females, no assumption was made as to children.

For those participants with listed beneficiaries, the beneficiary allowance was assumed to be the greater of twicethe amount contained in the record or the minimum benefit of $4,500/yr. (The information contained in the recordhas not been updated for the change from 25% to 50% payment to the survivor.)

For those participants without listed beneficiaries, 65% were assumed to be married and the beneficiary amountwas assumed to be the minimum benefit payable ($4,500/yr.).

Actuarial Method: The unfunded accrued liability was measured as of June 30, 1990 and the accrued liability con-tribution rate was then determined such that the unfunded accrued liability was to be amortized over a period ofnine years with contributions expected to remain constant.

In determining the unfunded accrued liability and the contribution rate, the actuarial value of assets as of June 30,1990 was based upon 100% of the market value of fund assets. For subsequent actuarial valuations, the actuarialvalue of assets is adjusted to reflect actual contributions and benefit payments, an assumed rate of return on theprevious year’s assets and current year’s cash flow at an annual rate of 2.00% with an adjustment to reflect 20%of the difference between the resulting value and the actual market value of Fund assets.

In developing the unfunded accrued liability contribution rate as of June 30, 1991 and subsequent years, the con-tribution rate is adjusted to amortize any gains or losses over the remainder of the nine-year period. (Without addi-tional guidance, we have assumed that the unfunded accrued liability determined as of June 30, 2012 will beamortized over one year.)

Age

Service Pensioners and Beneficiaries Disability

PensionersMen Women60 0.675% 0.506% 2.45%

65 1.274 0.971 3.57

70 2.221 1.674 5.32

75 3.783 2.811 8.02

80 6.437 4.588 12.11

85 11.076 7.745 18.20

90 18.341 13.168 26.88





ValuationDate

Added to Rolls Removed From Rolls Rolls at End of Year % Increase(Decrease)in AnnualAllowance

AverageAnnual




Allowance*

7/1/12 3 $46,595 72 $478,997 241 $1,717,152 (20.12)% $7,125

7/1/11 1 6,861 87 572,894 310 2,149,554 (20.84) 6,934

7/1/10 0 0 50 356,230 396 2,715,587 (11.60) 6,858

7/1/09 8 60,806 94 653,683 446 3,071,817 (16.18) 6,887

7/1/08 5 42,453 93 695,563 532 3,664,694 (15.13) 6,889

7/1/07 5 35,530 104 612,861 620 4,317,804 (11.79) 6,964

*The benefit amounts shown are the annualized benefits as of the valuation date and are not the actual benefits paid during the fiscal year.


There have been no active participants in the Fund since July 1, 1992.

ValuationDate



Benefits*

Percentage of Accrued Liabilities Covered by Net

Assets Available


Contributions



Members (1) (2) (3)

7/1/12 $0 $8,026,421 $0 $7,179,322 N/A 89.45% N/A

7/1/11 0 9,179,981 0 8,300,684 N/A 90.42 N/A

7/1/10 0 11,824,904 0 10,632,228 N/A 89.91 N/A

7/1/09 0 14,024,132 0 13,879,949 N/A 98.97 N/A

7/1/08 0 17,319,488 0 16,962,382 N/A 97.94 N/A

7/1/07 0 21,090,186 0 19,858,423 N/A 94.16 N/A

*Actuarial value including receivable amount.

SOLVENCY TEST




ANALYSIS OF PAST FINANCIAL EXPERIENCERECONCILIATION OF UNFUNDED ACCRUED LIABILITY/(SURPLUS)

Valuation Year

July 1,2012

July 1,2011

July 1,2010

July 1,2009

July 1,2008

July 1,2007

Prior Year Unfunded/(Surplus) $879,297 $1,192,676 $144,183 $357,106 $1,231,763 $511,937

Net Change Due to:

Interest in Prior Year

Unfunded/(Surplus) $17,586 $23,854 $2,884 $7,142 $24,635 $10,239

Investment Loss/(Gain) 355,895 408,804 467,873 532,716 630,900 809,913

Retiree Experience (515,459) (572,247) 206,204 (388,781) (273,794) 421,850

State Appropriations (896,883) (173,790) 0 (364,000) (1,256,398) (522,176)

Appropriations Act N/A N/A 371,532 N/A N/A N/A

Assumption, Benefit, or

Method Changes 1,006,663 N/A N/A N/A N/A N/A

Actual Unfunded/(Surplus) $847,099 $879,297 $1,192,676 $144,183 $357,106 $1,231,763



Member of a municipal police department, munici-pal paid or part-paid fire department or countypolice department, or a paid or part-paid firedepartment of a fire district located in a townshipwho has contributed to this pension fund; and whois not covered by the Police and Firemen’sRetirement System which became effective on July1, 1944.

Active Member: Any member who is a policeman,fireman, detective, lineman, driver of police van, firealarm operator, or inspector of combustibles andwho is subject to call for active service as such.

Employee Member: Any member who is not sub-ject to active service or duty.

2. DEFINITIONS


Service: Service rendered while a member asdescribed above.

Compensation: Base salary; not including individ-ual salary adjustments which are granted primarilyin anticipation of retirement or additional remunera-tion for performing temporary duties beyond theregular work day. (Effective June 30, 1996 Chapter113, P.L. 1997 provided that the amount of com-pensation used for employer and member contribu-tions and benefits under the program cannotexceed the compensation limitation of Section401(a)(17) of the Internal Revenue Code.)

Final Compensation: Compensation receivedduring the last 12 months of service precedingretirement or termination of service.

Average Salary: Salary averaged over the lastthree years prior to retirement or other terminationof service.

3. BENEFITS

Service Retirement: Mandatory retirement at age65 with 25 years of service (a municipality mayretain the Chief of Police until age 70). Voluntaryretirement after 25 years of service for an activemember and after age 60 with 25 years of service

for an employee member. Benefit is life annuityequal to 60% of final compensation, plus 1% of finalcompensation for years of service in excess of 25.

Death benefit:

WHILE ON DUTY: Immediate life annuity equal to70% of average salary payable to the spouse. Ifthere is no spouse or if the spouse dies or remar-ries, 20% of final compensation will be payable toone surviving child and 35% (50%) of final compen-sation will be payable, to two (three) surviving chil-dren. If there is no surviving spouse or child, 25%(40%) of final compensation will be payable to one(two) surviving dependent parent(s). The minimumspousal annuity is $4,500 per annum.

WHILE NOT ON DUTY AFTER RETIREMENT: Lifeannuity equal to 50% of the member’s averagesalary payable to the spouse, plus 15% (25%) toone (two or more ) surviving child (children). If thereis no surviving spouse or if the surviving spousedies or remarries, 20% (35%, 50%) of the mem-ber’s average salary to one (two, three or more)surviving child (children). In the event that there isno surviving spouse or child, 25% (40%) of themember’s average salary will be payable to one(two) dependent parent(s). The minimum spousalannuity is $4,500 per annum.

Ordinary Disability Retirement: Totally and per-manently incapacitated from service for any causeother than as a direct result of a traumatic eventoccurring during the performance of duty. Benefit isan immediate life annuity equal to 1/2 of averagesalary.

Accidental Disability Retirement: Totally and per-manently incapacitated as a direct result of a trau-matic event occurring while performing regular orassigned duties. Benefit is an immediate life annu-ity equal to 2/3 of average salary.





April 3, 2013

CommissionPrison Officers’ Pension Fund

of New Jersey



An actuarial valuation of the Prison Officers’ Pension Fund is performed annually to measure theongoing costs of the Fund and the progress towards the funding goals of the Fund over time. Sincethe pension fund is closed to new entrants and there are no active participants, the financial goalsof the Prison Officers’ Pension Fund are to ensure that the combination of future State appropria-tions and current Trust assets, both projected forward with expected investment earnings, are suf-ficient to provide for all future benefit payments.

The unfunded accrued liability for basic allowances was initially determined as of July 1, 1989 andwas to be amortized over the 14-year period beginning July 1, 1989 and ending on July 1, 2002.However, the provisions of Chapter 115, P.L. 1997 of the Pension Security Legislation permittedthe State to pay off the unfunded accrued liability from the proceeds of pension obligation bonds.The net effect of this legislation and plan experience was that no contributions were required forthe fiscal year beginning July 1, 2013. (There were no required unfunded accrued liability paymentsdue to the fact that a net surplus existed as of July 1, 2012.)


The recommended contribution for the fiscal year beginning July 1, 2013 was based on the methoddescribed above using an interest rate of 5.00%. In accordance with actuarial standards of prac-tice, the mortality assumption for service retirements and beneficiaries was updated to the RP-2000 Combined Healthy Mortality Tables projected on a generational basis using Projection ScaleAA. Assets are valued at book value, which is equivalent to market value.

The valuation does not take into account any changes in U.S. equity prices and bond yields thathave occurred after the valuation date. Taking these into account may significantly change the mar-ket value of assets shown. The effect of these events on any funded ratios shown, and on Fundcalculations, is not known. The Fund’s funding and financial accounting rules generally prohibitreflection of changes in assets and underlying economic conditions that occur after the valuationdate.


In our opinion, the attached schedules of valuation results fairly represent the status of the PrisonOfficers’ Pension Fund and present an accurate view of historical data. The underlying assump-tions and methods used for both funding and GASB disclosure purposes are consistent with thestatutory specifications and represent a best estimate of the aggregate future experience of theFund.






• Solvency Test

• Analysis of Past Financial Experience Reconciliation of Unfunded Accrued Liability/(Surplus)




The valuation was prepared in accordance with the principles of practice prescribed by theActuarial Standards Board and generally accepted actuarial procedures and methods. The calcu-lations are based on the current provisions of the Fund, and on actuarial assumptions that are indi-vidually and in the aggregate internally consistent and reasonable based on the actual experienceof the Fund.


Buck Consultants









Deaths After Retirement: RP-2000 Combined Healthy Mortality Tables for service retirements and beneficiariesprojected on a generational basis from the base year of 2012 using Projection Scale AA. Special mortality tablesare used for the period after disability retirement with no provisions made for mortality improvement after the valu-ation date for disability retirements. Representative values of the assumed annual rates of mortality unadjusted forProjection Scale AA for current retirees are as follows:

Marriage: Husbands are assumed to be 3 years older than wives.

Valuation Method: The unfunded accrued liability (the difference between the present value of benefits and thevaluation assets) was determined as of July 1, 1988. This liability was amortized over the 14-year period beginningJuly 1, 1989, and ending on July 1, 2002. Each year the amortization payments were adjusted to reflect any expe-rience gains or losses that occurred during the previous plan year. All gains and losses were amortized over theremaining original amortization period. (Without any guidance, we have assumed that any unfunded accrued liabil-ity that develops after the July 1, 2001 valuation will be amortized over 1 year.)

Asset Valuation Method: Assets are valued at book value, which is equivalent to market value.

Age

Service Retirement and Beneficiaries Disability

RetirementMen Women60 0.675% 0.506% 2.722%

65 1.274 0.971 3.969

70 2.221 1.674 5.909

75 3.783 2.811 8.906

80 6.437 4.588 13.458

85 11.076 7.745 20.220

90 18.341 13.168 29.873





ValuationDate

Added to Rolls Removed From Rolls Rolls at End of Year % Increase(Decrease)in AnnualAllowance

AverageAnnual




Allowance*

7/1/12 3 $20,252 10 $76,496 135 $937,046 (5.66)% $6,941

7/1/11 2 11,391 9 66,709 142 993,290 (5.28) 6,995

7/1/10 3 10,962 9 52,842 149 1,048,608 (3.84) 7,038

7/1/09 4 19,345 16 90,358 155 1,090,488 (6.11) 7,035

7/1/08 5 20,466 14 74,921 167 1,161,501 (4.48) 6,955

7/1/07 4 32,822 12 114,796 176 1,215,956 (6.32) 6,909

*The benefit amounts shown are the annualized benefits as of the valuation date and are not the actual benefits paid during the fiscal year.


There have been no active participants in the Fund since July 1, 1994.

ValuationDate



Benefits*

Percentage of Accrued Liabilities Covered by Net

Assets Available


Contributions



Members (1) (2) (3)

7/1/12 $0 $5,395,505 $0 $9,044,236 N/A 100.00% N/A

7/1/11 0 5,096,792 0 9,997,650 N/A 100.00 N/A

7/1/10 0 5,635,024 0 11,018,367 N/A 100.00 N/A

7/1/09 0 6,136,441 0 11,986,919 N/A 100.00 N/A

7/1/08 0 6,789,017 0 12,890,441 N/A 100.00 N/A

7/1/07 0 7,378,386 0 13,499,361 N/A 100.00 N/A

*Market value including receivable amount.

SOLVENCY TEST






July 1,2011

July 1,2010

July 1,2009

July 1,2008

July 1,2007

Prior Year Unfunded/(Surplus) $(4,900,858) $(5,383,343) $(5,850,478) $(6,101,424) $(6,120,975) $(5,778,423)Net Change Due to:

Interest in Prior Year

Unfunded/(Surplus) $(245,043) $(269,167) $(292,524) $(305,071) $(306,049) $(288,921)

Investment Loss/(Gain) 473,239 492,481 520,553 419,571 97,600 (41,763)

Retiree Experience 210,511 259,171 239,106 136,446 228,000 (11,868)

Assumption/Method Changes 813,420 N/A N/A N/A N/A N/A

Actual Unfunded/(Surplus) $(3,648,731) $(4,900,858) $(5,383,343) $(5,850,478) $(6,101,424) $(6,120,975)



Employees of State penal institutions, employedprior to January 1, 1960 who did not transfer to thePolice & Firemen’s Retirement System in accor-dance with Chapter 205 of Public Law 1989. TheSystem no longer accepts new members.

2. DEFINITIONS


Service: A year is credited for each year anemployee is a member of the retirement system.

Average Final Compensation (AFC): Averageannual compensation (or base salary) for 3 years ofService immediately preceding retirement.(Effective June 30, 1996, Chapter 113, P.L. 1997provided that the amount of compensation used foremployer and member contributions and benefitsunder the program cannot exceed the compensa-tion limitation of Section 401(a)(17) of the InternalRevenue Code.)

Accumulated Deductions: The sum (withoutinterest) of all required amounts deducted from thecompensation of a member or contributed by himor on his behalf.

3. BENEFITS

Service Retirements: 25 years of service, or age55 and 20 years of service. The benefit is a lifeannuity equal to the greater of (a), (b), and (c)below:

a. 2% of AFC up to 30 years of service plus 1%for each year in excess of 30 and prior to age65;

b. 50% of final pay; and

c. For member with 25 years of service, 2% ofAFC up to 30 years of service plus 1% for eachyear in excess of 30.

Vested Retirements: Eligible upon termination ofemployment. Benefits are summarized as follows:

Termination with 10 or more years of service:Benefit is a deferred life annuity equal to 2% of AFCfor service up to 30 years plus 1% for service over30 years.

Termination with less than 10 years of service:Refund of accumulated deductions.

Ordinary Disability Retirement: Permanent andtotal disability for causes other than as a directresult of a traumatic event occurring during the per-formance of regular or assigned duties. Benefit isan immediate life annuity equal to 1/2 of AFC.

Accidental Disability Retirement: Permanent andtotal disabled as a direct result of a traumatic eventoccurring while performing regular or assignedduties. Benefit is an immediate life annuity equal to2/3 of AFC.

Death Benefits: Death of member of system.Spouse must be married to member prior to retire-ment, or at least five years before member’s death.Benefit is an annuity equal to 25% of member’sAFC plus an additional 15% (25%) for one (two ormore) surviving dependent child (children). If thereis no spouse or if the spouse dies or remarries,20% (35%, 50%) of AFC to one (two, three ormore) surviving child (children). If there is no sur-viving spouse or children, 25% (40%) of AFC toone (two) dependent parent(s). The provision for asurvivor annuity payable to dependent parentsdoes not apply in the death of a retired member ofthe system.

Minimum benefits: Minimum spousal annuity is$1,600 per annum. If no other benefit is payableprior to retirement, the member’s beneficiary shallreceive the accumulated deductibles.





April 3, 2013

CouncilSupplemental Annuity Collective Trust

of New Jersey


Members of the Council:

An actuarial valuation of the Supplemental Annuity Collective Trust is performed at least once inevery three-year period to measure the ongoing costs of the Trust and the progress towards thefunding goals of the Trust over time. The financial goals of the Supplemental Annuity CollectiveTrust are to ensure that current Trust assets are sufficient to provide for all future annuity payments.The most recent valuation was prepared as of June 30, 2012.

The Supplemental Annuity Collective Trust of New Jersey was established under the provisions ofChapter 123, P.L. 1963, which was approved July 1, 1963. The act permits active members of thefollowing retirement systems administered by the State of New Jersey to make voluntary addition-al contributions through their retirement systems to purchase either a variable or fixed annuity tosupplement the benefits provided by their systems.

Public Employees’ Retirement SystemTeachers’ Pension and Annuity FundThe Police and Firemen’s Retirement SystemConsolidated Police and Firemen’s Pension FundPrison Officers’ Pension FundState Police Retirement SystemJudicial Retirement System

As of the July 1, 2012 valuation, only the variable annuity program was in operation. It was inau-gurated July 1, 1964. Chapter 123, P.L. 1963 was amended June 6, 1965 by Chapter 90, P.L. 1965,to permit eligible employees to enter into an agreement with their employers to reduce theirsalaries and purchase annuities on their behalf which will qualify for the tax sheltered treatmentpermitted under Section 403(b) of the Internal Revenue Code of 1954, as amended. The ruleswere revised in 1982 to permit contributions in the form of qualified voluntary employee contribu-tions. These contributions are treated as IRA contributions for tax purposes.


The Trust status as of the fiscal year beginning July 1, 2012 was based on the actuarial assump-tions and methods summarized on the following page. The mortality assumptions used for maleand female service retirements and dependents of active and retired members were changedbased on the results of an investigation of mortality experience covering the period July 1, 2009 toJune 30, 2012. Based on the results of the study, the mortality assumptions for female serviceretirements, disability retirements and female beneficiaries of active and retired members wererevised to better reflect actual plan experience. In addition, we have provided for future improve-ments in mortality for service retirements and beneficiaries of active and retired members using agenerational approach. There were no other changes in actuarial assumptions and methods sincethe previous valuation.

The valuation does not take into account any changes in U.S. equity prices and bond yields thathave occurred after the valuation date. Taking these into account may significantly change the mar-ket value of assets shown. The effect of these events on any Trust calculations is not known.Funding and financial accounting rules generally prohibit reflection of changes in assets andunderlying economic conditions that occur after the valuation date.


In our opinion, the attached schedules of valuation results fairly represent the status of theSupplemental Annuity Collective Trust and present an accurate view of historical data. The under-lying assumptions and methods used for the valuation are consistent with the statutory specifica-tions and represent a best estimate of the aggregate future experience of the Trust.


The valuation was prepared in accordance with the principles of practice prescribed by theActuarial Standards Board and generally accepted actuarial procedures and methods. The calcu-lations are based on the current provisions of the Trust, and on actuarial assumptions that are indi-vidually and in the aggregate internally consistent and reasonable based on the actual experienceof the Trust.


Buck Consultants








In valuing the liabilities of the Variable Benefit Account, an interest rate of 4% per year was used.

In addition, the valuation used the RP-2000 Combined Healthy Male (set back 5 years) and Female (set back 3years) Mortality Tables for service retirement and dependent beneficiaries projected on a generational basis fromthe base year of 2012 using Projection Scale AA. The RP-2000 Disability Mortality Tables are used to value dis-abled retirees. Illustrative rates of mortality unadjusted for Projection Scale AA used for valuation purposes are asfollows:

Age

Rate per 1,000Service Retirement Disability

Male Female Male Female40 0.77 0.55 22.57 7.4545 1.08 0.85 22.57 7.4550 1.51 1.33 28.98 11.5355 2.14 2.02 35.44 16.5460 3.62 3.48 42.04 21.8465 6.75 6.66 50.17 28.0370 12.74 12.16 62.58 37.6375 22.21 20.66 82.07 52.2380 37.83 34.11 109.37 72.3185 64.37 56.29 141.60 100.2090 110.76 96.34 183.41 140.0595 183.41 157.62 267.49 194.51

Based on the results of an investigation of the mortality experience covering the period from July 1, 2009 to June30, 2012, the mortality tables used for female service retirements and beneficiaries of active and retired membersand male and female disability retirements were changed. In addition, for service retirements and beneficiaries ofactive and retired members, provide for future improvements in mortality by using a generational approach usingProjection Scale AA.





ValuationDate

Added to Rolls Removed from Rolls Rolls at End of Year% Increase (Decrease)in Annual Variable

Equity Units

Average Number of

Annual Variable

Equity UnitsNumber

Number ofAnnual Variable

Equity Units Number


Equity Units Number


Equity Units*

6/30/12 25 2,353.8420 97 9,841.6716 454 41,042.6364 (15.43)% 90.4023

6/30/09 36 3,512.0064 113 11,157.3420 526 48,530.4660 (13.61) 92.2632

6/30/06 35 2,435.0580 100 9,824.2776 603 56,175.8016 (11.62) 93.1605

6/30/03 47 6,040.8276 118 10,755.7560 668 63,565.0212 (6.91) 95.1572

6/30/00 57 5,584.7820 122 10,275.5556 739 68,279.9496 (6.43) 92.3951

6/30/97 53 2,282.7816 108 5,385.3372 804 72,970.7232 (4.08) 90.7596

*The monthly number of variable equity units shown are the benefits of the valuation date and are not the actual benefits paid during the suc-ceeding three fiscal years.

SCHEDULE OF ACTIVE MEMBER VALUATION DATA**

Valuation Date

Number ofActive

MembersEquity Shares

Average Units

per Person

% Increase(Decrease) in Average

Equity Units

6/30/12 2,729 1,847,879.8189 677.1271 14.52%

6/30/09 3,317 1,961,173.8340 591.2493 11.41

6/30/06 3,576 1,897,693.2350 530.6748 9.09

6/30/03 3,910 1,902,053.0982 486.4586 (9.34)

6/30/00 4,023 2,158,681.7328 536.5851 (21.74)

6/30/97 3,907 2,678,839.2241 685.6512 (8.15)

**These values exclude suspended members.

SOLVENCY TEST

ValuationDate

Present Value of Benefits for

(4) Fund

Balances


(1) Aggregate

Contributions

(2) Current

Beneficiaries

(3)Active &Inactives (1) (2) (3)

6/30/12 $69,131,827 $22,239,231 $54,761,622 $149,840,256 100.00% 100.00% 100.00%

6/30/09 69,792,459 18,294,318 28,783,838 120,414,735 100.00 100.00 100.00

6/30/06 61,417,327 30,688,847 70,384,314 159,612,705 100.00 100.00 95.91

6/30/03 52,666,675 26,582,925 48,099,954 127,186,109 100.00 100.00 99.66

6/30/00 45,026,249 46,341,126 124,548,634 216,985,359 100.00 100.00 100.00

6/30/97 40,015,582 36,811,600 98,695,306 176,280,772 100.00 100.00 100.00





Valuation Year July 1, 2012 July 1, 2009 July 1, 2006 July 1, 2003 July 1, 2000

Prior Valuation Deficit/(Surplus) $(3,544,120) $2,877,783 $163,445 $(1,069,350) $(758,284)

Net Change Due to:

Retiree Experience $(947,053) (6,421,903) 1,128,887 1,232,795 1,919,537

Assumption/Method Changes 783,596 N/A 1,585,451 N/A (2,230,603)

Current Valuation Deficit/(Surplus) $(3,707,577) $(3,544,120) $2,877,783 $163,445 $(1,069,350)


A summary of the benefit and contribution provisions ofthe Trust in effect on the valuation date is presented in thefollowing digest. Participants’ accounts are expressed interms of equity units. The value of an equity unit was ini-tially set at $10.The dollar value of the unit is computed atthe end of each month. It varies as a result of mortalityexperience and gains and losses and dividend earningson the Variable Division’s investments.

1. ELIGIBILITY

Member of a State-administered retirement systemmay become a participant upon filing an applicationfor enrollment.

2. PARTICIPANT ACCOUNTS

Although contributions are permitted in either fixedor variable accounts, only the variable system iscurrently in place.

(a) Three optional participant accounts:

(1) Variable annuity account.

(2) Tax sheltered annuity account under Section403(b) of the Internal Revenue Code.

(3) Qualified voluntary employee contributionaccount (QVEC) – eliminated January 1,1987.

(b) Value of Account: The total number of equityunits in force in the variable account at the endof each month shall be determined as follows:

(1) The number of equity units in force at thestart of the month; plus

(2) The number of equity units credited as ofthe first of the month for participant’s con-tributions received during the precedingquarter, if any; less

(3) The number of equity units paid out in thecurrent month on account of terminationsfor death or withdrawal during the preced-ing month; less

(4) The number of equity units transferred asof the first of the month for retirement dur-ing the preceding month; plus

(5) One third of one percent of the balance soobtained.

3. BENEFITS

Retirement: Upon retirement a participant is paid alife annuity which is the fixed number of variable

equity units per month computed as the actuarialequivalent of the number of equity units in hisaccount at the close of the month of retirement,multiplied by the value of each unit as of the end ofthe quarter preceding the month of payment.

At retirement the participant may elect in lieu of thevariable life annuity either (1) a single cashpayment, or (2) an equivalent reduced annuity withthe provision that:

(a) In case of death prior to 5 years from the effec-tive date of the annuity, the annuity will be con-tinued to his designated beneficiary for theremainder of the 5-year period, or

(b) In case of death prior to 10 years from theeffective date of the annuity, the annuity will becontinued to his designated beneficiary for theremainder of the 10-year period, or

(c) At the death of the participant, his variableannuity will be continued throughout the life ofsuch other person as the participant shall havedesignated at the time of retirement, or

(d) At the death of the participant, one-half of hisvariable annuity will be continued throughoutthe life of such other person as the participantshall have designated at the time of retirement.

In the event the value of the participant’s account atretirement results in an annuity with initial monthlypayments of less than $10, the benefit shall be paidin a single cash payment.

Death Before Retirement: If a participant diesbefore retirement, a lump sum payment equal tothe value of his account on the last day of themonth of his death is paid to his designated bene-ficiary or to his estate. If the beneficiary is a naturalperson, he may elect, in lieu of a lump sum pay-ment, an annuity under any of the methods of set-tlement available to a retirant.

Withdrawal: Withdrawal is permitted only if mem-bership in the basic State administered retirementsystem is terminated. However, the Council mayterminate an inactive account if the value of theaccount is less than $100. The amount paid onwithdrawal is the value of the participant’s accountas of the end of the month of termination.

4. CONTRIBUTIONS

Participants: Each participant contributes throughpayroll deductions integral dollar amounts not in





excess of 10% of his salary. He may also makelump sum contributions by direct payments in inte-gral dollar amounts of not less than $50, providedthat total contributions for any one year may notexceed 10% of his annual salary.

Employers: Employers may contribute, on behalfof eligible employees who agree to a salary reduc-tion equivalent to the amount of the contribution,even dollar amounts which shall be from 1% to10% of base salary.

The amounts by which the employee’s salary isreduced must be within the exclusion allowanceprovided under Section 403(b) of the InternalRevenue Code.






STATISTICAL SECTION




STATISTICAL INFORMATIONS

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STATISTICAL INFORMATION


SCHEDULE OF REVENUES BY SOURCE

(based on Comprehensive Annual Financial Reports for relevant years)

PERCENTAGEOF ANNUAL INVESTMENT

FISCAL MEMBER EMPLOYER COVERED AND OTHERYEAR CONTRIBUTIONSCONTRIBUTIONSCOMPENSATION REVENUES TOTAL

PUBLIC EMPLOYEES’ 2004 374,864,048 774,456,965 8.25 2,778,643,257 3,927,964,270RETIREMENT SYSTEM 2005 533,862,353 410,736,970 4.15 1,928,822,241 2,873,421,564

2006 630,322,617 322,487,907* 5.11 2,338,531,507 3,291,342,0312007 654,493,521 674,629,437 6.14 3,810,965,382 5,140,088,3402008 705,903,439 812,356,103 7.11 (391,708,689) 1,126,550,8532009 741,911,166 774,672,945 6.56 (3,787,350,299) (2,270,766,188)2010 743,486,792 919,999,429 7.67 2,696,305,650 4,359,791,8712011 728,602,461 925,626,097 7.73 3,813,641,343 5,467,869,9012012 793,993,077 997,437,885 8.59 628,573,598 2,420,004,5602013 845,999,525 1,184,446,277 10.36 2,687,826,583 4,718,272,385

TEACHERS’ PENSION 2004 405,695,555 456,411,646 5.93 3,652,597,813 4,514,705,014AND ANNUITY FUND 2005 488,861,870 550,722,913 6.84 2,471,563,713 3,511,148,496

2006 507,106,612 101,327,375* 7.77 2,980,823,472 3,589,257,4592007 523,997,776 693,759,318 7.93 4,874,924,850 6,092,681,9442008 585,800,133 701,584,600 7.73 (766,377,094) 521,007,6392009 616,222,799 102,472,305 1.09 (5,071,848,719) (4,353,153,615)2010 615,862,621 42,850,384 0.44 3,277,424,465 3,936,137,4702011 593,587,972 36,117,717 0.36 4,364,388,191 4,994,093,8802012 685,608,357 323,100,685 3.34 640,982,289 1,649,691,3312013 726,523,839 655,438,957 6.70 2,865,390,916 4,247,353,712

POLICE AND FIREMEN’S 2004 263,173,065 264,164,091 9.30 1,943,638,309 2,470,975,465RETIREMENT SYSTEM 2005 276,195,076 473,227,921 15.91 1,383,396,386 2,132,819,383

2006 290,681,716 714,210,999 23.03 1,675,380,936 2,680,273,6512007 307,335,360 825,687,477 25.18 2,777,158,696 3,910,181,5332008 310,259,367 886,871,720 25.63 (339,212,149) 857,918,9382009 326,491,066 913,302,011 23.40 (2,735,834,439) (1,496,041,362)2010 330,951,798 1,001,223,223 27.25 2,008,239,281 3,340,414,3022011 327,357,244 (216,914,092) (5.83) 3,071,480,855 3,181,924,0072012 374,688,168 842,084,854 23.07 371,496,172 1,588,269,1942013 387,775,184 898,531,390 24.58 2,191,780,555 3,478,087,129

STATE POLICE 2004 14,682,524 45,339 0.02 216,209,057 230,936,920RETIREMENT SYSTEM 2005 15,450,745 437,652 0.20 140,386,795 156,275,192

2006 16,917,317 13,015,093 5.38 173,767,121 203,699,5312007 17,861,043 29,285,276 11.13 291,531,439 338,677,7582008 18,306,246 36,506,782 13.26 (34,109,753) 20,703,2752009 18,652,049 5,644,059 2.01 (298,475,097) (274,178,989)2010 18,825,131 1,235,580 0.43 214,479,134 234,539,8452011 18,164,837 2,208,340 0.76 280,447,557 300,820,7342012 23,233,207 13,578,328 4.93 48,915,745 85,727,280*2013 21,875,233 27,781,894 9.81 191,873,254 241,530,381

* Restated due to the implementation of GASB Statement No. 43 (Other Post-Employment Benefits)




SCHEDULE OF REVENUES BY SOURCE


PERCENTAGEOF ANNUAL INVESTMENT

FISCAL MEMBER EMPLOYER COVERED AND OTHERYEAR CONTRIBUTIONSCONTRIBUTIONSCOMPENSATION REVENUES TOTAL

JUDICIAL 2004 1,795,721 5,084,315 8.25 43,476,173 50,356,209RETIREMENT SYSTEM 2005 1,480,942 6,162,076 10.01 26,763,410 34,406,428

2006 1,583,469 7,972,000 13.18 32,475,105 42,030,5742007 2,201,527 12,741,898 20.39 52,215,397 67,158,8222008 1,825,726 12,913,986 20.45 (1,268,945) 13,470,7672009 3,032,945 1,696,891 2.53 (56,230,261) (51,500,425)2010 3,054,881 2,308,854 3.29 37,131,556 42,495,2912011 2,575,318 1,693,412 2.36 42,358,462 46,627,1922012 2,476,205 6,061,953 8.99 4,954,214 13,492,3722013 3,402,807 12,308,419 18.24 25,932,027 41,643,253

CONSOLIDATED 2004 — 2,000,402 — 10,206,935 12,207,337POLICE AND FIREMEN’S 2005 — 7,074,835 — 9,368,766 16,443,601PENSION FUND 2006 — 6,450,118 — 8,637,363 15,087,481

2007 — 1,809,773 — 7,974,527 9,784,3002008 — 550,881 — 6,953,657 7,504,5382009 — 1,276,151 — 5,784,074 7,060,2252010 — 13,236 — 4,865,684 4,878,9202011 — 8,199 — 4,050,513 4,058,7122012 — 193,183 — 3,234,795 3,427,9782013 — 911,150 — 2,478,204 3,389,354

PRISON OFFICERS’ 2004 — — — 1,363,329 1,363,329PENSION FUND 2005 — — — 1,544,971 1,544,971

2006 — — — 1,682,105 1,682,1052007 — — — 1,850,323 1,850,3232008 — — — 1,650,523 1,650,5232009 — — — 1,286,442 1,286,4422010 — — — 1,100,162 1,100,1622011 — — — 1,096,674 1,096,6742012 — — — 1,004,312 1,004,3122013 — — — 898,612 898,612

PENSION TRUST 2004 1,060,210,913 1,502,162,758 7.43 8,646,134,873 11,208,508,544FUNDS TOTAL 2005 1,615,850,986 1,448,362,367 6.83 5,961,846,282 9,026,059,635

2006 1,446,611,731 1,165,463,492* 8.67 7,211,297,609 9,823,372,8322007 1,505,889,227 2,237,913,179 9.59 11,816,620,614 15,560,423,0202008 1,622,094,911 2,450,784,072 10.09 (1,524,072,450) 2,548,806,5332009 1,706,310,025 1,799,064,362 7.14 (11,942,668,299) (8,437,293,911)2010 1,712,181,223 1,967,630,706 7.63 8,239,545,932 11,919,357,8612011 1,670,287,832 748,739,673 2.87 11,577,463,595 13,996,491,1002012 1,879,999,014 2,182,456,888 8.63 1,699,161,125 5,761,617,0272013 1,985,576,588 2,779,418,087 8.63 7,966,180,151 12,731,174,826





SCHEDULE OF EXPENSES BY TYPE


WITHDRAWALS, TRANSFERSBENEFITS ADMINISTRATIVE TO OTHER

FISCAL AND OTHER RETIREMENTYEAR RETIREMENT OTHER EXPENSES SYSTEMS TOTAL

PUBLIC EMPLOYEES’ 2004 1,342,672,462 429,133,774 69,093,929 15,202,812 1,856,102,977RETIREMENT SYSTEM 2005 1,430,518,096 469,353,256 77,859,834 13,229,171 1,990,960,357

2006 1,527,004,088 282,372,610* 67,232,871 20,404,379 1,897,013,9482007 1,649,495,269 327,539,477 87,186,633 9,665,453 2,073,886,8322008 1,782,422,238 366,958,834 100,212,670 15,047,572 2,264,641,3142009 1,936,521,198 370,573,294 97,943,420 18,340,013 2,423,377,9252010 2,058,292,073 396,434,652 99,779,660 15,384,771 2,569,891,1562011 2,273,677,650 398,645,486 121,899,183 11,926,661 2,806,148,9802012 2,510,170,979 390,368,925 118,918,227 11,541,759 3,030,999,8902013 2,646,551,098 394,323,222 125,195,980 15,603,909 3,181,674,209

TEACHERS’ PENSION 2004 1,615,493,787 690,695,012 34,115,575 3,411,106 2,343,715,480AND ANNUITY FUND 2005 1,778,364,298 777,410,393 40,688,935 2,603,363 2,599,066,989

2006 1,943,588,309 297,294,133* 40,311,056 3,289,349 2,284,482,8472007 2,117,640,036 335,912,944 45,808,681 3,044,379 2,502,406,0402008 2,295,924,794 381,757,919 50,298,222 4,205,762 2,732,186,6972009 2,453,071,751 416,493,789 49,886,243 4,057,851 2,923,509,6342010 2,573,053,407 455,140,026 51,867,458 2,401,574 3,082,462,4652011 2,897,547,945 445,910,746 52,090,871 4,842,890 3,400,392,4522012 3,089,098,664 449,518,827 49,554,835 2,880,016 3,591,052,3422013 3,230,672,077 442,437,581 54,781,359 4,926,204 3,732,817,221

POLICE AND FIREMEN’S 2004 828,110,553 158,945,146 9,998,813 680,232 997,734,724RETIREMENT SYSTEM 2005 899,263,678 165,199,575 10,978,333 594,778 1,076,036,364

2006 969,680,617 183,810,179 11,037,817 537,733 1,165,066,3462007 1,047,270,962 206,072,605 11,549,909 491,009 1,265,384,4852008 1,129,947,758 223,161,242 13,181,196 394,592 1,366,684,7882009 1,216,141,979 247,278,432 12,295,214 531,253 1,476,246,8782010 1,310,546,315 262,964,540 11,318,702 376,544 1,585,206,1012011 1,454,083,372 267,469,347 11,583,365 237,855 1,733,373,9392012 1,593,941,123 268,460,489 11,117,174 353,727 1,873,872,5132013 1,706,252,607 263,216,129 10,616,511 148,902 1,980,234,149

STATE POLICE 2004 74,612,608 14,659,455 307,349 11,477 89,590,889RETIREMENT SYSTEM 2005 83,114,429 15,755,321 536,941 32,016 99,438,707

2006 87,425,434 17,512,726 478,723 — 105,416,8832007 92,445,253 18,467,646 707,974 — 111,620,8732008 99,990,185 21,447,892 728,121 — 122,166,1982009 107,778,693 24,196,051 743,849 — 132,718,5932010 114,055,702 24,466,800 722,827 — 139,245,3292011 122,990,229 25,942,676 454,558 — 149,387,4632012 138,282,207 24,783,162 442,277 4 163,507,6502013 156,528,482 25,890,232 333,770 — 182,752,484





SCHEDULE OF EXPENSES BY TYPE


WITHDRAWALS, TRANSFERSBENEFITS ADMINISTRATIVE TO OTHER

FISCAL AND OTHER RETIREMENTYEAR RETIREMENT OTHER EXPENSES SYSTEMS TOTAL

JUDICIAL 2004 23,787,469 3,276,925 309,713 — 27,374,107RETIREMENT SYSTEM 2005 25,775,961 3,242,394 169,357 — 29,187,712

2006 27,411,244 3,726,355 199,592 — 31,337,1912007 29,173,626 3,767,566 159,340 — 33,100,5322008 30,653,458 4,949,502 222,565 — 35,825,5252009 32,742,280 4,922,727 202,022 — 37,867,0292010 35,634,276 5,598,235 367,124 — 41,599,6352011 38,075,562 5,122,471 248,783 — 43,446,8162012 41,022,857 4,932,689 205,529 — 46,161,0752013 42,972,345 4,712,524 163,232 — 47,848,101

CONSOLIDATED 2004 16,829,838 — 28,831 — 16,858,669POLICE AND FIREMEN’S 2005 15,137,682 — 54,494 — 15,192,176PENSION FUND 2006 13,478,301 — 25,777 — 13,504,078

2007 11,873,928 — 27,883 — 11,901,8112008 10,398,599 — 20,152 — 10,418,7512009 8,844,291 — 13,234 — 8,857,5252010 7,495,068 — 8,200 — 7,503,2682011 6,308,585 — 19,182 — 6,327,7672012 5,046,645 — 14,152 — 5,060,7972013 1,404,672 2,477,987 11,739 — 3,894,398

PRISON OFFICERS’ 2004 2,750,556 — 6,298 — 2,756,854PENSION FUND 2005 2,631,732 — 14,202 — 2,645,934

2006 2,443,222 — 7,630 — 2,450,8522007 2,356,383 — 9,297 — 2,365,6802008 2,250,040 — 9,403 — 2,259,4432009 2,181,622 — 8,341 — 2,189,9632010 2,063,123 — 5,591 — 2,068,7142011 2,110,016 — 7,376 — 2,117,3922012 1,950,804 — 6,922 — 1,957,7262013 874,422 889,542 6,965 — 1,770,929

PENSION TRUST 2004 3,904,257,253 1,296,710,312 113,860,508 19,305,627 5,334,133,700FUNDS TOTAL 2005 4,234,805,876 1,430,960,939 130,302,096 16,459,328 5,812,528,239

2006 4,571,031,215 784,716,003* 119,293,466 24,231,461 5,499,272,1452007 4,950,255,457 891,760,238 145,449,717 13,200,841 6,000,666,2532008 5,351,587,072 998,275,389 164,672,329 19,647,926 6,534,182,7162009 5,757,281,814 1,063,464,293 161,092,323 22,929,117 7,004,767,5472010 6,101,139,964 1,144,604,253 164,069,562 18,162,889 7,427,976,6682011 6,794,793,359 1,143,090,726 186,303,318 17,007,406 8,141,194,8092012 7,379,513,279 1,138,064,092 180,259,116 14,775,506 8,712,611,9932013 7,785,255,703 1,133,947,217 191,109,556 20,679,015 9,130,991,491





SCHEDULE OF CHANGES IN NET ASSETS


NET ASSETS

FISCAL NET BEGINNING END YEAR ADDITIONS DEDUCTIONS CHANGE OF YEAR OF YEAR

PUBLIC EMPLOYEES' 2004 3,927,964,270 1,856,102,977 2,071,861,293 20,961,491,114 23,033,352,407 RETIREMENT SYSTEM 2005 2,873,421,564 1,990,960,356 882,461,208 23,033,352,407 23,915,813,615

2006 3,291,342,031* 1,897,013,948* 1,394,328,083 23,914,516,673* 25,308,844,756 2007 5,140,088,340 2,073,886,832 3,066,201,508 25,308,844,756 28,375,046,264 2008 1,126,550,853 2,264,641,314 (1,138,090,461) 28,375,046,264 27,236,955,803 2009 (2,270,766,187) 2,423,377,925 (4,694,144,112) 27,236,955,803 22,542,811,691 2010 4,359,791,871 2,569,891,156 1,789,900,715 22,542,811,691 24,332,712,406 2011 5,467,869,901 2,806,148,979 2,661,720,922 24,332,712,406 26,994,433,328 2012 2,420,004,560 3,030,999,890 (610,995,330) 26,994,433,328 26,383,437,998 2013 4,718,272,385 3,181,674,209 1,536,598,176 26,383,437,998 27,920,036,174

TEACHERS' PENSION 2004 4,514,705,014 2,343,715,480 2,170,989,534 26,549,160,496 28,720,150,030 AND ANNUITY FUND 2005 3,511,148,496 2,599,066,990 912,081,506 28,720,150,030 29,632,231,536

2006 3,589,257,459* 2,284,482,847* 1,304,774,612 29,631,612,619* 30,936,387,231 2007 6,092,681,944 2,502,406,040 3,590,275,904 30,936,387,231 34,526,663,135 2008 521,007,639 2,732,186,697 (2,211,179,058) 34,526,663,135 32,315,484,077 2009 (4,353,153,615) 2,923,509,634 (7,276,663,249) 32,315,484,077 25,038,820,828 2010 3,936,137,470 3,082,462,465 853,675,005 25,038,820,828 25,892,495,833 2011 4,994,093,881 3,400,392,453 1,593,701,428 25,892,495,833 27,486,197,261 2012 1,649,691,331 3,591,052,342 (1,941,361,011) 27,486,197,261 25,544,836,250 2013 4,247,353,712 3,732,817,221 514,536,491 25,544,836,250 26,059,372,741

POLICE AND FIREMEN'S 2004 2,470,975,465 997,734,724 1,473,240,741 14,879,955,591 16,353,196,332 RETIREMENT SYSTEM 2005 2,132,819,383 1,076,036,364 1,056,783,019 16,353,196,332 17,409,979,351

2006 2,680,273,651 1,165,066,345 1,515,207,306 17,409,979,351 18,925,186,657 2007 3,910,181,533 1,265,384,485 2,644,797,048 18,925,186,657 21,569,983,705 2008 857,918,938 1,366,684,788 (508,765,850) 21,569,983,705 21,061,217,855 2009 (1,496,041,362) 1,476,246,878 (2,972,288,240) 21,061,217,855 18,088,929,615 2010 3,340,414,302 1,585,206,101 1,755,208,201 18,088,929,615 19,844,137,816 2011 3,181,924,007 1,733,373,939 1,448,550,068 19,844,137,816 21,292,687,884 2012 1,588,269,194 1,873,872,513 (285,603,319) 21,292,687,884 21,007,084,565 2013 3,478,087,129 1,980,234,149 1,497,852,980 21,007,084,565 22,504,937,545

STATE POLICE 2004 230,936,920 89,590,889 141,346,031 1,545,738,865 1,687,084,896 RETIREMENT SYSTEM 2005 156,275,192 99,438,707 56,836,485 1,687,084,896 1,743,921,381

2006 203,699,531 105,416,883 98,282,648 1,743,921,381 1,842,204,029 2007 338,677,758 111,620,873 227,056,885 1,842,204,029 2,069,260,914 2008 20,703,275 122,166,199 (101,462,924) 2,069,260,914 1,967,797,990 2009 (274,178,989) 132,718,593 (406,897,582) 1,967,797,990 1,560,900,408 2010 234,539,845 139,245,329 95,294,516 1,560,900,408 1,656,194,924 2011 300,820,734 149,387,463 151,433,271 1,656,194,924 1,807,628,195 2012 85,727,280 163,507,650 (77,780,370) 1,807,628,195 1,729,847,825 2013 241,530,381 182,752,484 58,777,897 1,729,847,825 1,788,625,722





SCHEDULE OF CHANGES IN NET ASSETS


NET ASSETS

FISCAL NET BEGINNING END YEAR ADDITIONS DEDUCTIONS CHANGE OF YEAR OF YEAR

JUDICIAL 2004 50,356,209 27,374,107 22,982,102 299,398,058 322,380,160 RETIREMENT SYSTEM 2005 34,406,428 29,187,712 5,218,716 322,380,160 327,598,876

2006 42,030,574 31,337,192 10,693,382 327,598,876 338,292,258 2007 67,158,822 33,100,532 34,058,290 338,292,258 372,350,548 2008 13,470,767 35,825,525 (22,354,758) 372,350,548 349,995,790 2009 (51,500,425) 37,867,029 (89,367,454) 349,995,790 260,628,336 2010 42,495,291 41,599,635 895,656 260,628,336 261,523,992 2011 46,627,192 43,446,816 3,180,376 261,523,992 264,704,368 2012 13,492,372 46,161,075 (32,668,703) 264,704,368 232,035,665 2013 41,643,253 47,848,101 (6,204,848) 232,035,665 225,830,817

CONSOLIDATED 2004 12,207,337 16,858,669 (4,651,332) 20,030,610 15,379,278 POLICE AND FIREMEN’S 2005 16,443,601 15,192,176 1,251,425 15,379,278 16,630,703 PENSION FUND 2006 15,087,481 13,504,078 1,583,403 16,630,703 18,214,106

2007 9,784,300 11,901,811 (2,117,511) 18,214,106 16,096,595 2008 7,504,538 10,418,750 (2,914,212) 16,096,595 13,182,383 2009 7,060,225 8,857,525 (1,797,300) 13,182,383 11,385,083 2010 4,878,920 7,503,268 (2,624,348) 11,385,083 8,760,735 2011 4,058,712 6,327,768 (2,269,056) 8,760,735 6,491,679 2012 3,427,978 5,060,797 (1,632,819) 6,491,679 4,858,860 2013 3,389,354 3,894,398 (505,044) 4,858,860 4,353,816

PRISON OFFICERS' 2004 1,363,329 2,756,854 (1,393,525) 17,277,953 15,884,428 PENSION FUND 2005 1,544,971 2,645,934 (1,100,963) 15,884,428 14,783,465

2006 1,682,105 2,450,852 (768,747) 14,783,465 14,014,718 2007 1,850,323 2,365,680 (515,357) 14,014,718 13,499,361 2008 1,650,523 2,259,443 (608,920) 13,499,361 12,890,441 2009 1,286,442 2,189,963 (903,521) 12,890,441 11,986,920 2010 1,100,162 2,068,714 (968,552) 11,986,920 11,018,368 2011 1,096,674 2,117,392 (1,020,718) 11,018,368 9,997,650 2012 1,004,312 1,957,726 (953,414) 9,997,650 9,044,236 2013 898,612 1,770,929 (872,317) 9,044,236 8,171,919

PENSION TRUST 2004 11,208,508,544 5,334,133,700 5,874,374,844 64,273,052,687 70,147,427,531 FUNDS TOTAL 2005 8,726,059,635 5,812,528,239 2,913,531,396 70,147,427,531 73,060,958,927

2006 9,823,372,832* 5,499,272,145* 4,324,100,687 73,059,043,068* 77,383,143,755 2007 15,560,423,020 6,000,666,253 9,559,756,767 77,383,143,755 86,942,900,522 2008 2,548,806,533 6,534,182,716 (3,985,376,183) 86,942,900,522 82,957,524,339 2009 (8,437,293,911) 7,004,767,547 (15,442,061,458) 82,957,524,339 67,515,462,881 2010 11,919,357,861 7,427,976,668 4,491,381,193 67,515,462,881 72,006,844,074 2011 13,996,491,101 8,141,194,810 5,855,296,291 72,006,844,074 77,862,140,365 2012 5,761,617,027 8,712,611,993 (2,950,994,966) 77,862,140,365 74,911,145,399 2013 12,731,174,826 9,130,991,491 3,600,183,335 74,911,145,399 78,511,328,734




ATLANTIC COUNTY (*)BERGEN COUNTY BURLINGTON COUNTY/PAYROLLDEPT CAMDEN CO BOARD OF CHOSENFREEHOLDERS CAPE MAY COUNTY CUMBERLAND COUNTY ESSEX COUNTY GLOUCESTER COUNTY HUDSON COUNTY (*)HUNTERDON COUNTY MERCER COUNTY (*)MIDDLESEX COUNTY MONMOUTH COUNTY/HALL OFRECORDS MORRIS COUNTY OCEAN COUNTY (*)PASSAIC COUNTY SALEM COUNTY (*)SOMERSET COUNTY FINANCEOFFICE SUSSEX COUNTY UNION COUNTY WARREN CO BD OF CHOSEN FREE-HOLDERS

ATLANTIC COUNTY WELFAREBOARD (*)BERGEN CO BOARD OF SOCIALSERVICES BURLINGTON CO BD OF SOC SER-VICES (*)CAMDEN CO BD OF SOCIAL SER-VICES (*)CAPE MAY CO BOARD SOCIAL SER-VICES CUMBERLAND CO BD SOCIAL SER-VICES (*)GLOUCESTER CO BD OF SOCIALSERVICES HUNTERDON CO BOARD SOCIALSERVICES MERCER CO BOARD OF SOCIALSERVICE (*)MIDDLESEX CO BD OF SOCIAL SER-VICES MONMOUTH CO DIV OF SOCIALSERVICES OCEAN CO BOARD OF SOCIAL SER-VICES (*)PASSAIC CO BOARD OF SOCIALSERVICES SALEM CO BOARD OF SOCIAL SER-VICES (*)SOMERSET CO BD OF SOCIAL SER-VICES (*)UNION CO BOARD OF SOCIAL SER-VICES

NJ ASSOC OF COUNTIES (*)NJ SCHOOL BOARDS ASSOCIATION(*)NJ STATE LEAGUE OF MUNICIPALI-TIES (*)

COMM WORKERS OF AMERICA #1034 COMM WORKERS OF AMERICA#1037 COMM WORKERS OF AMERICA #1033

ABERDEEN TOWNSHIP ABSECON CITY (*)ALEXANDRIA TOWNSHIP (*)ALLAMUCHY TOWNSHIP (*)ALLENDALE BOROUGH ALLENHURST BOROUGH (*)ALLENTOWN BOROUGH ALLOWAY TOWNSHIP ALPHA BOROUGH (*)ALPINE BOROUGH ANDOVER BOROUGH ANDOVER TOWNSHIP (*)ASBURY PARK CITY ATLANTIC CITY ATLANTIC HIGHLANDS (*)AUDUBON BOROUGH (*)AUDUBON PARK BOROUGH (*)AVALON BOROUGH AVON BY THE SEA BARNEGAT LIGHT BOROUGH (*)BARNEGAT TOWNSHIP BARRINGTON BOROUGH BASS RIVER TWP MUNICIPAL BLDG BAY HEAD BOROUGH (*)BAYONNE CITY (*)BEACH HAVEN BOROUGH (*)BEACHWOOD BOROUGH BEDMINSTER TOWNSHIP (*)BELLEVILLE TOWNSHIP BELLMAWR BOROUGH BELMAR BOROUGH (*)BELVIDERE TOWN (*)BERGENFIELD BOROUGH (*)BERKELEY HEIGHTS TOWNSHIP BERKELEY TWP MUNICIPAL BLDG (*)BERLIN BOROUGH (*)BERLIN TOWNSHIP (*)BERNARDS TOWNSHIP (*)BERNARDSVILLE BORO (*)BETHLEHEM TOWNSHIP (*)BEVERLY CITY MUNICIPAL BLDG (*)BLAIRSTOWN TOWNSHIP (*)BLOOMFIELD TOWNSHIP BLOOMINGDALE BOROUGH (*)BLOOMSBURY BOROUGH (*)BOGOTA BOROUGH BOONTON TOWN (*)BOONTON TOWNSHIP (*)BORDENTOWN CITY (*)BORDENTOWN TWP BOUND BROOK BOROUGH (*)BRADLEY BEACH BOROUGH (*)BRANCHBURG TOWNSHIP BRANCHVILLE BOROUGH (*)BRICK TOWNSHIP BRIDGETON CITY BRIDGEWATER TWP

BRIELLE BOROUGH BRIGANTINE CITY BROOKLAWN BOROUGH BUENA BOROUGH (*)BUENA VISTA TOWNSHIP (*)BURLINGTON CITY (*)BURLINGTON TOWNSHIP BUTLER BOROUGH BYRAM TOWNSHIP CALDWELL BOROUGH CALIFON BOROUGH (*)CAMDEN CITY CAPE MAY CITY (*)CAPE MAY POINT BOROUGH (*)CARLSTADT BOROUGH CARNEYS POINT TOWNSHIP CARTERET BOROUGH CEDAR GROVE TOWNSHIP (*)CHATHAM BOROUGH CHATHAM TOWNSHIP CHERRY HILL TOWNSHIP CHESILHURST BOROUGH CHESTER BOROUGH (*)CHESTER TOWNSHIP (*)CHESTERFIELD TOWNSHIP (*)CINNAMINSON TOWNSHIP CLARK TOWNSHIP (*)CLAYTON BOROUGH (*)CLEMENTON BOROUGH (*)CLIFFSIDE PARK BOROUGH (*)CLIFTON CITY CLINTON TOWN (*)CLINTON TOWNSHIP (*)CLOSTER BOROUGH (*)COLLINGSWOOD BOROUGH (*)COLTS NECK TOWNSHIP COMMERCIAL TOWNSHIP (*)CORBIN CITY (*)CRANBURY TOWNSHIP (*)CRANFORD TOWNSHIP CRESSKILL BOROUGH (*)DEAL BOROUGH (*)DEERFIELD TOWNSHIP (*)DELANCO TOWNSHIP (*)DELAWARE TOWNSHIP (*)DELRAN TOWNSHIP DEMAREST BOROUGH (*)DENNIS TOWNSHIP (*)DENVILLE TOWNSHIP (*)DEPTFORD TOWNSHIP (*)DOVER TOWN DOWNE TOWNSHIP DUMONT BOROUGH (*)DUNELLEN BOROUGH (*)EAGLESWOOD TOWNSHIP (*)EAST AMWELL TOWNSHIP (*)EAST BRUNSWICK TOWNSHIP EAST GREENWICH TOWNSHIP EAST HANOVER TOWNSHIP EAST NEWARK BOROUGH EAST ORANGE CITY EAST RUTHERFORD BOROUGH (*)EAST WINDSOR TOWNSHIP EASTAMPTON TOWNSHIP (*)

EATONTOWN BOROUGH EDGEWATER BOROUGH EDGEWATER PARK TOWNSHIP (*)EDISON TOWNSHIP EGG HARBOR CITY EGG HARBOR TOWNSHIP (*)ELIZABETH CITY (*)ELK TOWNSHIP (*)ELMER BOROUGH ELMWOOD PARK BOROUGH (*)ELSINBORO TOWNSHIP EMERSON BOROUGH ENGLEWOOD CITY (*)ENGLEWOOD CLIFFS BOROUGH (*)ENGLISHTOWN BOROUGH ESSEX FELLS BOROUGH (*)ESTELL MANOR CITY (*)EVESHAM TOWNSHIP EWING TOWNSHIP (*)FAIR HAVEN BOROUGH (*)FAIR LAWN BOROUGH FAIRFIELD TOWNSHIP (CUMBER-LAND) FAIRFIELD TOWNSHIP (ESSEX) FAIRVIEW BOROUGH (*)FANWOOD BOROUGH FAR HILLS BOROUGH (*)FARMINGDALE BOROUGH (*)FIELDSBORO BOROUGH FLEMINGTON BOROUGH (*)FLORENCE TOWNSHIP (*)FLORHAM PARK BOROUGH FOLSOM BOROUGH (*)FORT LEE BOROUGH FRANKFORD TOWNSHIP (*)FRANKLIN BOROUGH (*)FRANKLIN LAKES BOROUGH (*)FRANKLIN TOWNSHIP (GLOUCES-TER) FRANKLIN TOWNSHIP (HUNTERDON) FRANKLIN TOWNSHIP (SOMERSET) FRANKLIN TOWNSHIP (WARREN) FREDON TOWNSHIP FREEHOLD BOROUGH (*)FREEHOLD TOWNSHIP FRELINGHUYSEN TWP (*)FRENCHTOWN BOROUGH (*)GALLOWAY TOWNSHIP GARFIELD CITY GARWOOD BOROUGH (*)GIBBSBORO BOROUGH GLASSBORO BOROUGH GLEN GARDNER BOROUGH (*)GLEN RIDGE BOROUGH (*)GLEN ROCK BOROUGH (*)GLOUCESTER CITY GLOUCESTER TOWNSHIP GREEN BROOK TOWNSHIP (*)GREEN TOWNSHIP (*)GREENWICH TOWNSHIP (CUMBER-LAND) GREENWICH TOWNSHIP (GLOUCES-TER) GREENWICH TOWNSHIP (WARREN)


PARTICIPATING COUNTY AND MUNICIPAL EMPLOYERS

*In addition to participating in the retirement system, also participates in the State Health Benefits Program



(*)GUTTENBERG TOWN HACKENSACK CITY HACKETTSTOWN TOWN (*)HADDON HEIGHTS BOROUGH (*)HADDON TOWNSHIP HADDONFIELD BOROUGH HAINESPORT TOWNSHIP (*)HALEDON BOROUGH (*)HAMBURG BOROUGH (*)HAMILTON TOWNSHIP (ATLANTIC) (*)HAMILTON TOWNSHIP (MERCER) HAMMONTON TOWN (*)HAMPTON BOROUGH (*)HAMPTON TOWNSHIP (*)HANOVER TOWNSHIP HARDING TOWNSHIP HARDWICK TOWNSHIP (*)HARDYSTON TOWNSHIP HARMONY TOWNSHIP (*)HARRINGTON PARK BOROUGH (*)HARRISON TOWN (HUDSON) HARRISON TOWNSHIP (GLOUCES-TER) (*)HARVEY CEDARS BOROUGH (*)HASBROUCK HEIGHTS BOROUGH (*)HAWORTH BOROUGH (*)HAWTHORNE BOROUGH HAZLET TOWNSHIP HELMETTA BOROUGH (*)HIGH BRIDGE BOROUGH HIGHLAND PARK BOROUGH (*)HIGHLANDS BOROUGH HIGHTSTOWN BOROUGH HILLSBOROUGH TOWNSHIP (*)HILLSDALE BOROUGH HILLSIDE TOWNSHIP HI-NELLA BOROUGH HOBOKEN CITY HO-HO-KUS BOROUGH (*)HOLLAND TOWNSHIP (*)HOLMDEL TOWNSHIP HOPATCONG BOROUGH HOPE TOWNSHIP (*)HOPEWELL BOROUGH (*)HOPEWELL TOWNSHIP (CUMBER-LAND) HOPEWELL TOWNSHIP (MERCER) HOWELL TOWNSHIP INDEPENDENCE TWP/ MUN. BLDG (*)INTERLAKEN BOROUGH IRVINGTON TWP DEPT OF REV &FINANCE ISLAND HEIGHTS BOROUGH (*)JACKSON TOWNSHIP (*)JAMESBURG BOROUGH (*)JEFFERSON TOWNSHIP (*)JERSEY CITY KEANSBURG BOROUGH KEARNY TOWN (*)KENILWORTH BOROUGH (*)KEYPORT BOROUGH KINGWOOD TOWNSHIP (*)KINNELON BOROUGH KNOWLTON TOWNSHIP (*)LACEY TOWNSHIP (*)LAFAYETTE TOWNSHIP (*)LAKE COMO BOROUGH (*)

LAKEHURST BOROUGH (*)LAKEWOOD TOWNSHIP LAMBERTVILLE CITY (*)LAUREL SPRINGS BOROUGH (*)LAVALLETTE BOROUGH (*)LAWNSIDE BOROUGH LAWRENCE TOWNSHIP (CUMBER-LAND) (*)LAWRENCE TOWNSHIP (MERCER) (*)LEBANON BOROUGH (*)LEBANON TOWNSHIP (*)LEONIA BOROUGH (*)LIBERTY TOWNSHIP (*)LINCOLN PARK BOROUGH LINDEN CITY (*)LINDENWOLD BOROUGH (*)LINWOOD CITY LITTLE EGG HARBOR TOWNSHIP LITTLE FALLS TWP (*)LITTLE FERRY BOROUGH (*)LITTLE SILVER BOROUGH LIVINGSTON TOWNSHIP (*)LOCH ARBOUR VILLAGE LODI BOROUGH LOGAN TOWNSHIP LONG BEACH TOWNSHIP (*)LONG BRANCH CITY LONG HILL TOWNSHIP (*)LONGPORT BOROUGH (*)LOPATCONG TOWNSHIP LOWER ALLOWAYS CREEK TOWN-SHIP LOWER TOWNSHIP LUMBERTON TOWNSHIP (*)LYNDHURST TOWNSHIP MADISON BOROUGH MAGNOLIA BOROUGH MAHWAH TOWNSHIP MANALAPAN TOWNSHIP (*)MANASQUAN BOROUGH MANCHESTER TOWNSHIP MANNINGTON TOWNSHIP (*)MANSFIELD TOWNSHIP (BURLING-TON) MANSFIELD TOWNSHIP (WARREN) MANTOLOKING BOROUGH (*)MANTUA TOWNSHIP (*)MANVILLE BOROUGH (*)MAPLE SHADE TOWNSHIP MAPLEWOOD TOWNSHIP (*)MARGATE CITY MARLBORO TOWNSHIP (*)MATAWAN BOROUGH MAURICE RIVER TOWNSHIP (*)MAYWOOD BOROUGH MEDFORD LAKES BOROUGH (*)MEDFORD TOWNSHIP (*)MENDHAM BOROUGH (*)MENDHAM TOWNSHIP (*)MERCHANTVILLE BOROUGH METUCHEN BOROUGH MIDDLE TOWNSHIP (*)MIDDLESEX BOROUGH (*)MIDDLETOWN TOWNSHIP MIDLAND PARK BOROUGH (*)MILFORD BOROUGH (*)MILLBURN TOWNSHIP (*)MILLSTONE BOROUGH

MILLSTONE TOWNSHIP (*)MILLTOWN BOROUGH (*)MILLVILLE CITY MINE HILL TOWNSHIP (*)MONMOUTH BEACH BOROUGH (*)MONROE TOWNSHIP (GLOUCESTER) MONROE TOWNSHIP (MIDDLESEX) MONTAGUE TOWNSHIP (*)MONTCLAIR TOWNSHIP (*)MONTGOMERY TOWNSHIP (*)MONTVALE BOROUGH MONTVILLE TOWNSHIP (*)MOONACHIE BOROUGH MOORESTOWN TOWNSHIP MORRIS PLAINS BOROUGH (*)MORRIS TOWNSHIP (*)MORRISTOWN TOWN MOUNT ARLINGTON BOROUGH (*)MOUNT EPHRAIM BOROUGH MOUNT HOLLY TOWNSHIP (*)MOUNT LAUREL TOWNSHIP (*)MOUNT OLIVE TOWNSHIP MOUNTAIN LAKES BOROUGH (*)MOUNTAINSIDE BOROUGH (*)MULLICA TOWNSHIP (*)NATIONAL PARK BOROUGH NEPTUNE CITY BOROUGH NEPTUNE TOWNSHIP NETCONG BOROUGH (*)NEW BRUNSWICK CITY NEW HANOVER TOWNSHIP (*)NEW MILFORD BOROUGH NEW PROVIDENCE BOROUGH NEWARK CITY NEWFIELD BOROUGH (*)NEWTON TOWN (*)NORTH ARLINGTON BOROUGH NORTH BERGEN TOWNSHIP NORTH BRUNSWICK TOWNSHIP (*)NORTH CALDWELL BOROUGH (*)NORTH HALEDON BOROUGH (*)NORTH HANOVER TOWNSHIP (*)N. HUNTERDON MUNICIPAL COURT(*)NORTH PLAINFIELD BOROUGH (*)NORTH WILDWOOD CITY NORTHFIELD CITY (*)NORTHVALE BOROUGH (*)NORWOOD BOROUGH (*)NUTLEY TOWNSHIP (*)OAKLAND BOROUGH OAKLYN BOROUGH OCEAN CITY OCEAN GATE BOROUGH (*)OCEAN TOWNSHIP (MONMOUTH) (*)OCEAN TOWNSHIP (OCEAN) OCEANPORT BOROUGH OGDENSBURG BOROUGH OLD BRIDGE TOWNSHIP OLD TAPPAN BOROUGH OLDMANS TOWNSHIP ORADELL BOROUGH (*)ORANGE CITY OXFORD TOWNSHIP (*)PALISADES PARK BOROUGH PALMYRA BOROUGH (*)PARAMUS BOROUGH (*)PARK RIDGE BOROUGH

PARSIPPANY TROY HILLS TOWNSHIP PASSAIC CITY (*)PATERSON CITY PAULSBORO BOROUGH PEAPACK GLADSTONE BOROUGH (*)PEMBERTON BOROUGH (*)PEMBERTON TOWNSHIP PENNINGTON BOROUGH (*)PENNS GROVE BOROUGH PENNSAUKEN TOWNSHIP PENNSVILLE TOWNSHIP PEQUANNOCK TOWNSHIP PERTH AMBOY CITY PHILLIPSBURG TOWN PILESGROVE TOWNSHIP (*)PINE BEACH BOROUGH (*)PINE HILL BOROUGH PINE VALLEY BOROUGH (*)PISCATAWAY TOWNSHIP PITMAN BOROUGH PITTSGROVE TOWNSHIP (*)PLAINFIELD CITY (*)PLAINSBORO TOWNSHIP PLEASANTVILLE CITY (*)PLUMSTED TOWNSHIP POHATCONG TOWNSHIP POINT PLEASANT BEACH BOROUGH POINT PLEASANT BOROUGH POMPTON LAKES BOROUGH (*)PORT REPUBLIC CITY (*)PRINCETON BOROUGH (*)PRINCETON TOWNSHIP PROSPECT PARK BOROUGH (*)QUINTON TOWNSHIP RAHWAY CITY RAMSEY BOROUGH RANDOLPH TOWNSHIP RARITAN BOROUGH (*)RARITAN TOWNSHIP READINGTON TOWNSHIP (*)RED BANK BOROUGH RIDGEFIELD BOROUGH (*)RIDGEFIELD PARK VILLAGE RIDGEWOOD VILLAGE (*)RINGWOOD BOROUGH RIVER EDGE BOROUGH (*)RIVER VALE TOWNSHIP (*)RIVERDALE BOROUGH (*)RIVERSIDE TOWNSHIP RIVERTON BOROUGH (*)ROBBINSVILLE TOWNSHIP ROCHELLE PARK TOWNSHIP (*)ROCKAWAY BOROUGH (*)ROCKAWAY TOWNSHIP (*)ROCKLEIGH BOROUGH (*)ROCKY HILL BOROUGH ROOSEVELT BOROUGH (*)ROSELAND BOROUGH (*)ROSELLE BOROUGH ROSELLE PARK BOROUGH ROXBURY TOWNSHIP RUMSON BOROUGH (*)RUNNEMEDE BOROUGH RUTHERFORD BOROUGH SADDLE BROOK TOWNSHIP SADDLE RIVER BOROUGH SALEM CITY (*)SANDYSTON TOWNSHIP (*)

PARTICIPATING COUNTY AND MUNICIPAL EMPLOYERS, Continued




SAYREVILLE BOROUGH SCOTCH PLAINS TOWNSHIP SEA BRIGHT BORO (*)SEA GIRT BOROUGH (*)SEA ISLE CITY SEASIDE HEIGHTS BOROUGH (*)SEASIDE PARK BOROUGH (*)SECAUCUS TOWN SHAMONG TOWNSHIP (*)SHILOH BOROUGH SHIP BOTTOM BOROUGH SHREWSBURY BOROUGH SHREWSBURY TOWNSHIP SOMERDALE BOROUGH (*)SOMERS POINT CITY SOMERVILLE BOROUGH (*)SOUTH AMBOY CITY SOUTH BOUND BROOK BOROUGH(*)SOUTH BRUNSWICK TOWNSHIP (*)SOUTH HACKENSACK TOWNSHIP SOUTH HARRISON TOWNSHIP SOUTH ORANGE VILLAGE (*)SOUTH PLAINFIELD BOROUGH SOUTH RIVER BOROUGH (*)SOUTH TOMS RIVER BOROUGH (*)SOUTHAMPTON TOWNSHIP (*)SPARTA TOWNSHIP SPOTSWOOD BOROUGH (*)SPRING LAKE BOROUGH (*)SPRING LAKE HEIGHTS BOROUGH(*)SPRINGFIELD TOWNSHIP (UNION) SPRINGFIELD TWP (BURLINGTON) (*)STAFFORD TOWNSHIP STANHOPE BOROUGH (*)STILLWATER TOWNSHIP (*)STOCKTON BOROUGH STONE HARBOR BOROUGH STOW CREEK TOWNSHIP STRATFORD BOROUGH (*)SUMMIT CITY (*)SURF CITY BOROUGH SUSSEX BOROUGH (*)SWEDESBORO BOROUGH TABERNACLE TOWNSHIP (*)TAVISTOCK BOROUGH TEANECK TOWNSHIP (*)TENAFLY BOROUGH (*)TETERBORO BOROUGH (*)

TEWKSBURY TOWNSHIP (*)TINTON FALLS BOROUGH TOMS RIVER TOWNSHIP TOTOWA BOROUGH (*)TRENTON CITY (*)TUCKERTON BOROUGH (*)UNION BEACH BOROUGH (*)UNION CITY UNION TOWNSHIP (HUNTERDON) (*)UNION TOWNSHIP (UNION) UPPER DEERFIELD TOWNSHIP (*)UPPER FREEHOLD TOWNSHIP (*)UPPER PITTSGROVE TOWNSHIP (*)UPPER SADDLE RIVER BORO (*)UPPER TOWNSHIP VENTNOR CITY VERNON TOWNSHIP VERONA TOWNSHIP (*)VICTORY GARDENS BOROUGH VINELAND CITY VOORHEES TOWNSHIP (*)WALDWICK BOROUGH (*)WALL TOWNSHIP WALLINGTON BOROUGH WALLPACK TOWNSHIP WANAQUE BOROUGH WANTAGE TOWNSHIP WARREN TOWNSHIP (*)WASHINGTON BOROUGH (*)WASHINGTON TOWNSHIP (BERGEN)(*)WASHINGTON TWP (BURLINGTON) WASHINGTON TWP (GLOUCESTER) WASHINGTON TWP (MORRIS) WASHINGTON TWP (WARREN) WATCHUNG BOROUGH (*)WATERFORD TOWNSHIP (*)WAYNE TOWNSHIP WEEHAWKEN TOWNSHIP (*)WENONAH BOROUGH WEST AMWELL TOWNSHIP (*)WEST CALDWELL TOWNSHIP WEST CAPE MAY BOROUGH (*)WEST DEPTFORD TOWNSHIP WEST LONG BRANCH BOROUGH WEST MILFORD TOWNSHIP WEST NEW YORK TOWN WEST ORANGE TOWNSHIP (*)WEST PATERSON BOROUGH WEST WILDWOOD BOROUGH (*)

WEST WINDSOR TOWNSHIP WESTAMPTON TOWNSHIP (*)WESTFIELD TOWN WESTVILLE BOROUGH WESTWOOD BOROUGH WEYMOUTH TOWNSHIP (*)WHARTON BOROUGH (*)WHITE TOWNSHIP (*)WILDWOOD CITY (*)WILDWOOD CREST BOROUGH (*)WILLINGBORO TOWNSHIP WINFIELD TOWNSHIP (*)WINSLOW TOWNSHIP WOODBINE BOROUGH (*)WOODBRIDGE TOWNSHIP WOODBURY CITY WOODBURY HEIGHTS BOROUGH (*)WOODCLIFF LAKE BOROUGH (*)WOODLAND TOWNSHIP (*)WOODLYNNE BOROUGH (*)WOOD-RIDGE BOROUGH WOODSTOWN BOROUGH (*)WOOLWICH TOWNSHIP WRIGHTSTOWN BOROUGH (*)WYCKOFF TOWNSHIP (*)

PARTICIPATING COUNTY AND MUNICIPAL EMPLOYERS, Continued




ATLANTIC CO AUDIO VISUAL AIDS COMMISSION (*)BURLINGTON CO AUDIO VISUAL AIDS COMMIS-SION (*)GLOUCESTER CO AUDIO VISUAL AID COMMIS-SION (*)MORRIS AUDIO VISUAL COMMISSION OCEAN CO AUDIO VISUAL AIDS COMMISSION (*)WARREN CO AUDIO VISUAL AIDS

ABSECON BOARD OF EDUCATION ALEXANDRIA TWP BOARD OF EDUCATION ALLAMUCHY BOARD OF EDUCATION ALLENDALE BORO BOARD OF EDUCATION ALLENHURST BOARD OF EDUCATION (*)ALLOWAY TWP BOARD OF EDUCATION ALPHA BOARD OF EDUCATION (*)ALPINE BOARD OF EDUCATION (*)ANDOVER REGIONAL BOARD OF EDUCATION (*)ASBURY PARK BOARD OF EDUCATION (*)ATLANTIC CITY BOARD OF EDUCATION ATLANTIC HIGHLANDS BOARD OF EDUCATION (*)AUDUBON BOROUGH BOARD OF EDUCATION AVALON BOROUGH BOARD OF EDUCATION AVON BY THE SEA BORO BOARD OF EDUCATION(*)BARNEGAT TWP BOARD OF EDUCATION BARRINGTON BORO BOARD OF EDUCATION (*)BASS RIVER TWP BOARD OF EDUCATION (*)BAY HEAD BOARD OF EDUCATION BAYONNE BOARD OF EDUCATION BEACH HAVEN BOROUGH BOARD OF EDUCATION(*)BEDMINSTER TWP BOARD OF EDUCATION BELLEVILLE BOARD OF EDUCATION BELLMAWR BOROUGH BOARD OF EDUCATION (*)BELMAR BORO BOARD OF EDUCATION BELVIDERE TOWN BOARD OF EDUCATION BERGENFIELD BOARD OF EDUCATION (*)BERKELEY HEIGHTS BOARD OF EDUCATION BERKELEY TWP BOARD OF EDUCATION BERLIN BOROUGH BOARD OF EDUCATION BERLIN TOWNSHIP BOARD OF EDUCATION BERNARDS TWP BOARD OF EDUCATION BETHLEHEM TWP BOARD OF EDUCATION BEVERLY CITY BOARD OF EDUCATION (*)BLACK HORSE PIKE REGIONAL SCHOOL DISTRICT BLAIRSTOWN TWP BOARD OF EDUCATION BLOOMFIELD TWP BOARD OF EDUCATION BLOOMINGDALE BOARD OF EDUCATION BLOOMSBURY BOROUGH BOARD OF EDUCATION(*)BOGOTA BORO BOARD OF EDUCATION (*)BOONTON TOWN BOARD OF EDUCATION BOONTON TWP BOARD OF EDUCATION BORDENTOWN REGIONAL SCHOOL DISTRICT (*)BOUND BROOK BORO BOARD OF EDUCATION BRADLEY BEACH BOARD OF EDUCATION BRANCHBURG TWP BOARD OF EDUCATION BRANCHVILLE BOARD OF EDUCATION BRICK TWP BOARD OF EDUCATION BRIDGETON BOARD OF EDUCATION BRIDGEWATER-RARITAN REGIONAL SCHOOL DIS-TRICT BRIELLE BORO BOARD OF EDUCATION BRIGANTINE CITY BOARD OF EDUCATION (*)

BROOKLAWN BORO BOARD OF EDUCATION BUENA REGIONAL SCHOOL DISTRICT BURLINGTON CITY BOARD OF EDUCATION BURLINGTON TWP BOARD OF EDUCATION BUTLER BORO BOARD OF EDUCATION BYRAM TWP BOARD OF EDUCATION CALDWELL WEST CALDWELL BOARD OF EDUCA-TION (*)CALIFON BORO BOARD OF EDUCATION (*)CAMDEN CITY BOARD OF EDUCATION (*)CAPE MAY CITY BOARD OF EDUCATION (*)CAPE MAY PT BORO BOARD OF EDUCATION CARLSTADT BOROUGH BOARD OF EDUCATION CARLSTADT EAST RUTHERFORD BOARD OF EDU-CATION CARTERET BOARD OF EDUCATION CEDAR GROVE TWP BOARD OF EDUCATION CENTRAL REGIONAL HIGH SCHOOL DISTRICT CHATHAMS SCHOOL DISTRICT CHERRY HILL TWP BOARD OF EDUCATION CHESILHURST BORO BOARD OF EDUCATION (*)CHESTER TWP BOARD OF EDUCATION CHESTERFIELD TWP BOARD OF EDUCATION (*)CINNAMINSON TWP BOARD OF EDUCATION CLARK TWP BOARD OF EDUCATION CLAYTON BOROUGH BOARD OF EDUCATION CLEARVIEW REGIONAL BOARD OF EDUCATION CLEMENTON BOARD OF EDUCATION CLIFFSIDE PARK BOARD OF EDUCATION CLIFTON CITY BOARD OF EDUCATION CLINTON TOWN BOARD OF EDUCATION CLINTON TWP BOARD OF EDUCATION CLOSTER BOARD OF EDUCATION (*)COLLINGSWOOD BOROUGH BOARD OF EDUCA-TION COLTS NECK TWP BOARD OF EDUCATION COMMERCIAL TWP BOARD OF EDUCATION CORBIN CITY BOARD OF EDUCATION (*)CRANBURY TOWNSHIP BOARD OF EDUCATION CRANFORD TWP BOARD OF EDUCATION (*)CRESSKILL BOARD OF EDUCATION CUMBERLAND REGIONAL SCHOOL DIST DEAL BORO BOARD OF EDUCATION (*)DEERFIELD TOWNSHIP BOARD OF EDUCATION DELANCO TWP BOARD OF EDUCATION DELAWARE TWP BOARD OF EDUCATION (*)DELAWARE VALLEY REGIONAL HIGH SCHOOL DIS-TRICT DELRAN TWP BOARD OF EDUCATION DELSEA REGIONAL HIGH SCHOOL DISTRICT DEMAREST BORO BOARD OF EDUCATION (*)DENNIS TWP BOARD OF EDUCATION DENVILLE TWP BOARD OF EDUCATION DEPTFORD TWP BOARD OF EDUCATION DOVER BOARD OF EDUCATION DOWNE TWP BOARD OF EDUCATION DUMONT BOROUGH BOARD OF EDUCATION DUNELLEN BOARD OF EDUCATION EAGLESWOOD TWP BOARD OF EDUCATION (*)EAST AMWELL TOWNSHIP BOARD OF EDUCATION(*)EAST BRUNSWICK TWP BOARD OF EDUCATION EAST GREENWICH BOARD OF EDUCATION (*)EAST HANOVER TWP BOARD OF EDUCATION (*)EAST NEWARK BOROUGH BOARD OF EDUCATION

(*)EAST ORANGE CITY BOARD OF EDUCATION (*)EAST RUTHERFORD BORO BOARD OF EDUCA-TION EAST WINDSOR REGIONAL SCHOOL DIST EASTAMPTON TOWNSHIP BOARD OF EDUCATION EASTERN CAMDEN CO REGIONAL SCHOOL DIS-TRICT EATONTOWN BOARD OF EDUCATION (*)EDGEWATER BORO BOARD OF EDUCATION EDGEWATER PARK TWP BOARD OF EDUCATION(*)EDISON TWP BOARD OF EDUCATION EGG HARBOR CITY BOARD OF EDUCATION (*)EGG HARBOR TWP BOARD OF EDUCATION ELIZABETH BOARD OF EDUCATION (*)ELK TWP BOARD OF EDUCATION ELMER BOARD OF EDUCATION ELMWOOD PARK BOROUGH BOARD OF EDUCA-TION (*)ELSINBORO TOWNSHIP BOARD OF EDUCATION (*)EMERSON BOROUGH BOARD OF EDUCATION (*)ENGLEWOOD CITY BOARD OF EDUCATION (*)ENGLEWOOD CLIFFS BOARD OF EDUCATION (*)ESSEX FELLS BOARD OF EDUCATION ESTELL MANOR BOARD OF EDUCATION (*)EVESHAM TWP BOARD OF EDUCATION EWING TOWNSHIP BOARD OF EDUCATION (*)FAIR HAVEN BOROUGH BOARD OF EDUCATION FAIR LAWN BOARD OF EDUCATION FAIRFIELD TWP BD OF EDUCATION (CUMBER-LAND) (*)FAIRFIELD TWP BOARD OF EDUCATION (ESSEX) FAIRVIEW BORO BOARD OF EDUCATION (*)FARMINGDALE BOARD OF EDUCATION (*)FLEMINGTON RARITAN BOARD OF EDUCATION FLORENCE TOWNSHIP BOARD OF EDUCATION FLORHAM PARK BOARD OF EDUCATION (*)FOLSOM BOROUGH BOARD OF EDUCATION (*)FORT LEE BOARD OF EDUCATION FRANKFORD TOWNSHIP BOARD OF EDUCATION FRANKLIN BORO BOARD OF EDUCATION (*)FRANKLIN LAKES BOARD OF EDUCATION FRANKLIN TWP BOARD OF EDUCATION(GLOUCESTER) FRANKLIN TWP BOARD OF EDUCATION (SOMER-SET) FRANKLIN TWP BOARD OF EDUCATION (WARREN) FRANKLIN TWP BOARD OF EDUCATION HUNTER-DON) FREDON TOWNSHIP BOARD OF EDUCATION FREEHOLD BORO BOARD OF EDUCATION FREEHOLD REGIONAL HIGH SCHOOL DISTRICT FREEHOLD TWP BOARD OF EDUCATION FRELINGHUYSEN TWP BOARD OF EDUCATION FRENCHTOWN BOROUGH BOARD OF EDUCATION(*)GALLOWAY TOWNSHIP BOARD OF EDUCATION GARFIELD CITY BOARD OF EDUCATION (*)GARWOOD BOROUGH BOARD OF EDUCATION GATEWAY REGIONAL HIGH SCHOOL GIBBSBORO BOROUGH BOARD OF EDUCATION GLASSBORO BOARD OF EDUCATION GLEN RIDGE BOARD OF EDUCATION GLEN ROCK BOROUGH BOARD OF EDUCATION (*)


PARTICIPATING EDUCATION EMPLOYERS




GLOUCESTER CITY BOARD OF EDUCATION (*)GLOUCESTER TWP BOARD OF EDUCATION GREAT MEADOWS REGIONAL BOARD OF EDUCA-TION GREATER EGG HARBOR REGIONAL GREEN BROOK BOARD OF EDUCATION GREEN TOWNSHIP BOARD OF EDUCATION GREENWICH TWP BD OF EDUCATION (CUMBER-LAND) (*)GREENWICH TWP BOARD OF EDUCATION(GLOUCESTER) GREENWICH TWP BOARD OF EDUCATION (WAR-REN) GUTTENBERG BORO BOARD OF EDUCATION HACKENSACK CITY BOARD OF EDUCATION (*)HACKETTSTOWN BOARD OF EDUCATION HADDON HEIGHTS BOARD OF EDUCATION HADDON TOWNSHIP BOARD OF EDUCATION HADDONFIELD BOARD OF EDUCATION HAINESPORT TOWNSHIP BOARD OF EDUCATION HALEDON BOROUGH BOARD OF EDUCATION (*)HAMBURG BOROUGH BOARD OF EDUCATION HAMILTON TWP BOARD OF EDUCATION(ATLANTIC) HAMILTON TWP BOARD OF EDUCATION (MERCER) HAMMONTON TOWN BOARD OF EDUCATION HAMPTON BOROUGH BOARD OF EDUCATION (*)HAMPTON TOWNSHIP BOARD OF EDUCATION (*)HANOVER PARK REGIONAL HIGH SCHOOL DIS-TRICT (*)HANOVER TOWNSHIP BOARD OF EDUCATION (*)HARDING TOWNSHIP BOARD OF EDUCATION HARDWICK TWP BOARD OF EDUCATION HARDYSTON TOWNSHIP BOARD OF EDUCATION HARMONY TOWNSHIP BOARD OF EDUCATION (*)HARRINGTON PARK BOARD OF EDUCATION HARRISON TOWN BOARD OF EDUCATION (HUD-SON) HARRISON TWP BOARD OF EDUCATION(GLOUCESTER) HASBROUCK HEIGHTS BOARD OF EDUCATION HAWORTH BOROUGH BOARD OF EDUCATION (*)HAWTHORNE BOARD OF EDUCATION HAZLET TWP BOARD OF EDUCATION HELMETTA BORO BOARD OF EDUCATION (*)HENRY HUDSON REGIONAL SCHOOL DISTRICT HIGH BRIDGE BOROUGH BOARD OF EDUCATION HIGH POINT REGIONAL HIGH SCHOOL HIGHLAND PARK BOARD OF EDUCATION HIGHLANDS BORO BOARD OF EDUCATION HILLSBOROUGH TWP BOARD OF EDUCATION HILLSDALE BOROUGH BOARD OF EDUCATION (*)HILLSIDE BOARD OF EDUCATION HOBOKEN BOARD OF EDUCATION HO-HO-KUS BOARD OF EDUCATION (*)HOLLAND TWP BOARD OF EDUCATION HOLMDEL TOWNSHIP BOARD OF EDUCATION (*)HOPATCONG BOARD OF EDUCATION HOPE TWP BOARD OF EDUCATION (*)HOPEWELL TWP BOARD OF EDUCATION (CUM-BERLAND) HOPEWELL VALLEY REGIONAL SCHOOL DISTRICT HOWELL TWP BOARD OF EDUCATION HUNTERDON CENTRAL HIGH SCHOOL INTERLAKEN BOROUGH BOARD OF EDUCATION IRVINGTON BOARD OF EDUCATION ISLAND HEIGHTS BORO BOARD OF EDUCATION (*)

JACKSON TOWNSHIP BOARD OF EDUCATION JAMESBURG BOROUGH BOARD OF EDUCATION(*)JEFFERSON TOWNSHIP BOARD OF EDUCATION JERSEY CITY PUBLIC SCHOOLS (*)KEANSBURG BOARD OF EDUCATION KEARNY TOWN BOARD OF EDUCATION KENILWORTH BOROUGH BOARD OF EDUCATION KEYPORT BOROUGH BOARD OF EDUCATION KINGSWAY REGIONAL SCHOOL DISTRICT KINGWOOD TOWNSHIP BOARD OF EDUCATION KINNELON BOROUGH BOARD OF EDUCATION KITTATINNY REGIONAL HIGH SCHOOL KNOWLTON TWP BOARD OF EDUCATION LACEY TOWNSHIP BOARD OF EDUCATION (*)LAFAYETTE TWP BOARD OF EDUCATION LAKEHURST BOROUGH BOARD OF EDUCATION LAKELAND REGIONAL HIGH SCHOOL DISTRICT LAKEWOOD TWP BOARD OF EDUCATION (*)LAMBERTVILLE CITY BOARD OF EDUCATION (*)LAUREL SPRINGS BOROUGH BOARD OF EDUCA-TION LAVALLETTE BOROUGH BOARD OF EDUCATION LAWNSIDE BOROUGH BOARD OF EDUCATION LAWRENCE TWP BOARD OF EDUCATION (CUM-BERLAND) LAWRENCE TWP BOARD OF EDUCATION (MER-CER) LEBANON BOROUGH BOARD OF EDUCATION (*)LEBANON TOWNSHIP BOARD OF EDUCATION LENAPE REGIONAL HIGH SCHOOL DISTRICT LENAPE VALLEY REGIONAL HIGH SCHOOL DIS-TRICT LEONIA BOROUGH BOARD OF EDUCATION LINCOLN PARK BORO BOARD OF EDUCATION LINDEN CITY BOARD OF EDUCATION LINDENWOLD BOROUGH BOARD OF EDUCATION LINWOOD BOARD OF EDUCATION (*)LITTLE EGG HARBOR TWP BOARD OF EDUCATION LITTLE FALLS BOARD OF EDUCATION LITTLE FERRY BOARD OF EDUCATION (*)LITTLE SILVER BOARD OF EDUCATION LIVINGSTON BOARD OF EDUCATION LODI BOARD OF EDUCATION LOGAN TOWNSHIP BOARD OF EDUCATION LONG BEACH ISLAND BOARD OF EDUCATION (*)LONG BRANCH BOARD OF EDUCATION LONG HILL TWP BOARD OF EDUCATION LONGPORT BOROUGH BOARD OF EDUCATION (*)LOPATCONG TOWNSHIP BOARD OF EDUCATION LOWER ALLOWAYS CREEK BOARD OF EDUCA-TION (*)LOWER CAPE MAY REGIONAL SCHOOL DISTRICT(*)LOWER TOWNSHIP BOARD OF EDUCATION (*)LUMBERTON TWP BOARD OF EDUCATION LYNDHURST TWP BOARD OF EDUCATION MADISON BORO BOARD OF EDUCATION MAGNOLIA BOROUGH BOARD OF EDUCATION MAHWAH BOARD OF EDUCATION MAINLAND REGIONAL HIGH SCHOOL (*)MANALAPAN ENGLISHTOWN REGIONAL SCHOOLS(*)MANASQUAN BOROUGH BOARD OF EDUCATION MANCHESTER TOWNSHIP BOARD OF EDUCATION MANNINGTON TOWNSHIP BOARD OF EDUCATION MANSFIELD TWP BOARD OF EDUCATION

(BURLINGTON) MANSFIELD TWP BOARD OF EDUCATION (WAR-REN) MANTOLOKING BORO BOARD OF EDUCATION MANTUA TOWNSHIP BOARD OF EDUCATION MANVILLE BOROUGH BOARD OF EDUCATION MAPLE SHADE BOARD OF EDUCATION MARGATE CITY BOARD OF EDUCATION (*)MARLBORO TOWNSHIP BOARD OF EDUCATION MATAWAN-ABERDEEN REGIONAL SCHOOL MAURICE RIVER TOWNSHIP BOARD OF EDUCA-TION MAYWOOD BOARD OF EDUCATION MEDFORD LAKES BORO BOARD OF EDUCATION MEDFORD TOWNSHIP BOARD OF EDUCATION MENDHAM BORO BOARD OF EDUCATION (*)MENDHAM TOWNSHIP BOARD OF EDUCATION MERCHANTVILLE BORO BOARD OF EDUCATION (*)METUCHEN BORO BOARD OF EDUCATION MIDDLE TOWNSHIP BOARD OF EDUCATION (*)MIDDLESEX BOARD OF EDUCATION MIDDLETOWN TWP BOARD OF EDUCATION MIDLAND PARK BORO BOARD OF EDUCATION (*)MILFORD BOROUGH BOARD OF EDUCATION (*)MILLBURN TWP PUBLIC SCHOOLS MILLSTONE BOROUGH BOARD OF EDUCATION MILLSTONE TOWNSHIP BOARD OF EDUCATION MILLTOWN BOROUGH BOARD OF EDUCATION MILLVILLE BOARD OF EDUCATION MINE HILL TWP BOARD OF EDUCATION (*)MONMOUTH BEACH BOARD OF EDUCATION (*)MONMOUTH REGIONAL SCHOOL MONROE TWP BOARD OF EDUCATION (GLOUCES-TER) MONROE TWP BOARD OF EDUCATION (MIDDLE-SEX) MONTAGUE BOARD OF EDUCATION MONTCLAIR BOARD OF EDUCATION MONTGOMERY TWP BOARD OF EDUCATION MONTVALE BOROUGH BOARD OF EDUCATION (*)MONTVILLE TWP BOARD OF EDUCATION MOONACHIE BOROUGH BOARD OF EDUCATION MOORESTOWN TOWNSHIP BOARD OF EDUCA-TION (*)MORRIS HILLS REGIONAL DISTRICT MORRIS PLAINS BOARD OF EDUCATION MORRIS SCHOOL DISTRICT MOUNT ARLINGTON BOARD OF EDUCATION MOUNT EPHRAIM BOARD OF EDUCATION MOUNT HOLLY TWP BOARD OF EDUCATION MOUNT LAUREL TWP BOARD OF EDUCATION MOUNT OLIVE TWP BOARD OF EDUCATION MOUNTAIN LAKES BORO BOARD OF EDUCATION(*)MOUNTAINSIDE BORO BOARD OF EDUCATION (*)MULLICA TWP BOARD OF EDUCATION (*)NATIONAL PARK BOROUGH BOARD OF EDUCA-TION NEPTUNE CITY BOARD OF EDUCATION NEPTUNE TWP BOARD OF EDUCATION NETCONG BOROUGH BOARD OF EDUCATION NEW BRUNSWICK BOARD OF EDUCATION NEW HANOVER TWP BOARD OF EDUCATION NEW MILFORD BOARD OF EDUCATION NEW PROVIDENCE BOARD OF EDUCATION NEWARK PUBLIC SCHOOLS (*)NEWTON BOARD OF EDUCATION


PARTICIPATING EDUCATION EMPLOYERS, Continued



NORTH ARLINGTON BOARD OF EDUCATION NORTH BERGEN BOARD OF EDUCATION (*)NORTH BRUNSWICK BOARD OF EDUCATION NORTH CALDWELL BOARD OF EDUCATION NORTH HALEDON BORO BOARD OF EDUCATION(*)NORTH HANOVER TOWNSHIP BOARD OF EDUCA-TION NORTH HUNTERDON-VOORHEES NORTH PLAINFIELD BOARD OF EDUCATION NORTH WARREN REGIONAL HIGH SCHOOL NORTH WILDWOOD BOARD OF EDUCATION (*)NORTHERN BURLINGTON CO REGIONAL NORTHERN HIGHLANDS REGIONAL HIGH SCHOOL(*)NORTHERN VALLEY REGIONAL HIGH SCHOOLDISTRICT NORTHFIELD BOARD OF EDUCATION NORTHVALE BOARD OF EDUCATION (*)NORWOOD BOARD OF EDUCATION (*)NUTLEY BOARD OF EDUCATION OAKLAND BOARD OF EDUCATION OAKLYN BOROUGH BOARD OF EDUCATION OCEAN CITY BOARD OF EDUCATION OCEAN GATE BOARD OF EDUCATION (*)OCEAN TWP BOARD OF EDUCATION (MONMOUTH) OCEAN TWP BOARD OF EDUCATION (OCEAN) (*)OCEANPORT SCHOOLS OGDENSBURG BOARD OF EDUCATION OLD BRIDGE BOARD OF EDUCATION OLD TAPPAN BOARD OF EDUCATION OLDMANS TWP BOARD OF EDUCATION ORADELL BOARD OF EDUCATION ORANGE CITY BOARD OF EDUCATION (*)OXFORD TWP BOARD OF EDUCATION PALISADES PARK BOARD OF EDUCATION PALMYRA BOROUGH BOARD OF EDUCATION PARAMUS BOARD OF EDUCATION PARK RIDGE BORO BOARD OF EDUCATION PARSIPPANY TROY HILLS BOARD OF EDUCATION PASCACK VALLEY REGIONAL HIGH SCHOOL DIS-TRICT (*)PASSAIC BOARD OF EDUCATION (*)PASSAIC CO MANCHESTER REGIONAL HIGH (*)PASSAIC CO REGIONAL HIGH SCHOOL DISTRICT 1(*)PATERSON BOARD OF EDUCATION (*)PAULSBORO BORO BOARD OF EDUCATION PEMBERTON BOROUGH BOARD OF EDUCATION PEMBERTON TOWNSHIP BOARD OF EDUCATION PENNS GROVE CARNEYS POINT REGIONAL PENNSAUKEN TWP BOARD OF EDUCATION PENNSVILLE TWP BOARD OF EDUCATION PEQUANNOCK TWP BOARD OF EDUCATION PERTH AMBOY BOARD OF EDUCATION PHILLIPSBURG TOWN BOARD OF EDUCATION PINE HILL BOROUGH BOARD OF EDUCATION PINELANDS REGIONAL SCHOOL DISTRICT (*)PISCATAWAY BOARD OF EDUCATION ADMN BLDG PITMAN BOARD OF EDUCATION PITTSGROVE TWP BOARD OF EDUCATION PLAINFIELD BOARD OF EDUCATION PLEASANTVILLE BOARD OF EDUCATION PLUMSTED TWP BOARD OF EDUCATION POHATCONG TWP BOARD OF EDUCATION POINT PLEASANT BEACH BOARD OF EDUCATION

POINT PLEASANT BORO BOARD OF EDUCATION POMPTON LAKES BOARD OF EDUCATION PORT REPUBLIC CITY BOARD OF EDUCATION (*)PRINCETON REGIONAL SCHOOL PROSPECT PARK BOARD OF EDUCATION (*)QUINTON TOWNSHIP BOARD OF EDUCATION (*)RAHWAY CITY BOARD OF EDUCATION (*)RAMAPO INDIAN HILLS REG HIGH SCHOOL DIS-TRICT RAMSEY BOROUGH BOARD OF EDUCATION RANCOCAS VALLEY REGIONAL HIGH SCHOOL RANDOLPH TOWNSHIP BOARD OF EDUCATION READINGTON TWP BOARD OF EDUCATION RED BANK BOARD OF EDUCATION (*)RED BANK REGIONAL HIGH SCHOOL DISTRICT RIDGEFIELD BORO BOARD OF EDUCATION (*)RIDGEFIELD PARK BOARD OF EDUCATION (*)RIDGEWOOD TWP BOARD OF EDUCATION RINGWOOD BORO BOARD OF EDUCATION (*)RIVER DELL REGIONAL SCHOOL DISTRICT (*)RIVER EDGE BORO BOARD OF EDUCATION RIVER VALE TWP BOARD OF EDUCATION RIVERDALE BOROUGH BOARD OF EDUCATION (*)RIVERSIDE TOWNSHIP BOARD OF EDUCATION RIVERTON BORO SCHOOL BOARD ROBBINSVILLE TWP BOARD OF EDUCATION ROCHELLE PARK TWP BOARD OF EDUCATION (*)ROCKAWAY BOROUGH BOARD OF EDUCATION (*)ROCKAWAY TOWNSHIP BOARD OF EDUCATION ROCKLEIGH BOROUGH BOARD OF ED ROCKY HILL BOARD OF EDUCATION ROOSEVELT BOROUGH BOARD OF EDUCATION (*)ROSELAND BOARD OF EDUCATION ROSELLE BORO BOARD OF EDUCATION ROSELLE PARK BORO BOARD OF EDUCATION ROXBURY TWP BOARD OF EDUCATION RUMSON BORO BOARD OF EDUCATION RUMSON FAIR HAVEN REGIONAL HIGH SCHOOL RUNNEMEDE BOROUGH BOARD OF EDUCATION RUTHERFORD BORO BOARD OF EDUCATION SADDLE BROOK BOARD OF EDUCATION (*)SADDLE RIVER BOARD OF EDUCATION (*)SALEM CITY BOARD OF EDUCATION SANDYSTON WALPACK SCHOOL DIST (*)SAYREVILLE BOARD OF EDUCATION SELOVERELM SCOTCH PLAINS FANWOOD BOARD OF EDUCA-TION SEA BRIGHT BORO BOARD OF EDUCATION (*)SEA GIRT BOARD OF EDUCATION (*)SEA ISLE CITY BOARD OF EDUCATION (*)SEASIDE HEIGHTS BOARD OF EDUCATION SEASIDE PARK BOARD OF EDUCATION (*)SECAUCUS TOWN BOARD OF EDUCATION SHAMONG TWP BOARD OF EDUCATION SHILOH BOROUGH BOARD OF EDUCATION SHORE REGIONAL HIGH SCHOOL DISTRICT SHREWSBURY BOROUGH BOARD OF EDUCATION SOMERDALE BORO BOARD OF EDUCATION SOMERS POINT CITY BOARD OF EDUCATION SOMERSET HILLS BOARD OF EDUCATION SOMERVILLE BOARD OF EDUCATION SOUTH AMBOY BOARD OF EDUCATION SOUTH BELMAR BOARD OF EDUCATION SOUTH BOUND BROOK BOARD OF EDUCATION SOUTH BRUNSWICK BOARD OF EDUCATION (*)

SOUTH HACKENSACK BOARD OF EDUCATION (*)SOUTH HARRISON TWP BOARD OF EDUCATION SOUTH HUNTERDON REGIONAL BD OF EDUCA-TION (*)SOUTH ORANGE-MAPLEWOOD BOARD OF EDU-CATION (*)SOUTH PLAINFIELD BOARD OF EDUCATION SOUTH RIVER BORO BOARD OF EDUCATION SOUTHAMPTON TWP BOARD OF EDUCATION SOUTHERN REGIONAL HIGH SCHOOL DISTRICT SPARTA BOARD OF EDUCATION SPOTSWOOD BOARD OF EDUCATION SPRING LAKE BORO BOARD OF EDUCATION SPRING LAKE HEIGHTS BOARD OF EDUCATION SPRINGFIELD TWP BOARD OF EDUCATION(UNION) SPRINGFIELD TWP BOARD OF EDUCATION(BURLINGTON) STAFFORD TOWNSHIP BOARD OF EDUCATION STANHOPE BOROUGH BOARD OF EDUCATION STERLING HIGH SCHOOL DISTRICT STILLWATER TOWNSHIP BOARD OF EDUCATION (*)STOCKTON BOROUGH BOARD OF EDUCATION (*)STONE HARBOR BOARD OF EDUCATION (*)STOW CREEK TOWNSHIP BOARD OF EDUCATION STRATFORD BOARD OF EDUCATION SUMMIT BOARD OF EDUCATION SUSSEX-WANTAGE REGIONAL SCHOOL DISTRICT SWEDESBORO WOOLWICH BOARD OF EDUCA-TION TABERNACLE TWP BOARD OF EDUCATION TEANECK BOARD OF EDUCATION (*)TENAFLY BOARD OF EDUCATION (*)TEWKSBURY TWP BOARD OF EDUCATION TINTON FALLS BOARD OF EDUCATION (*)TOMS RIVER SCHOOL DISTRICT TOTOWA BOROUGH BOARD OF EDUCATION (*)TRENTON CITY BOARD OF EDUCATION TUCKERTON BORO BOARD OF EDUCATION UNION BEACH BORO BOARD OF EDUCATION UNION CITY BOARD OF EDUCATION UNION TWP BOARD OF EDUCATION (UNION) UNION TWP OF ED (HUNTERDON) UPPER DEERFIELD TWP BOARD OF EDUCATION UPPER FREEHOLD REGIONAL UPPER PITTSGROVE TWP BOARD OF EDUCATION UPPER SADDLE RIVER BOARD OF EDUCATION (*)UPPER TOWNSHIP BOARD OF EDUCATION VENTNOR CITY BOARD OF EDUCATION VERNON TOWNSHIP BOARD OF EDUCATION VERONA BOARD OF EDUCATION VICTORY GARDENS BORO BOARD OF EDUCATION(*)VINELAND CITY BOARD OF EDUCATION VOORHEES TWP BOARD OF EDUCATION WALDWICK BORO BOARD OF EDUCATION (*)WALL TOWNSHIP BOARD OF EDUCATION WALLINGTON BOROUGH BOARD OF EDUCATION(*)WALLKILL VALLEY REGIONAL HIGH SCHOOL WANAQUE BOARD OF EDUCATION WARREN HILLS REGIONAL SCHOOLS WARREN TOWNSHIP BOARD OF EDUCATION WASHINGTON BORO BOARD OF EDUCATION WASHINGTON TWP BOARD OF EDUCATION (MOR-RIS)


*In addition to participating in the retirement system, also participates in the State Health Benefits Program1Reporting authority only per N.J.S.A. 18A:66-14.2



WASHINGTON TWP BOARD OF EDUCATION (WAR-REN) WASHINGTON TWP BOARD OF EDUCATION (BURL)(*)WASHINGTON TWP BOARD OF EDUCATION(GLOUCESTER) WATCHUNG BOROUGH BOARD OF EDUCATION WATCHUNG HILLS REGIONAL HIGH SCHOOL WATERFORD TWP BOARD OF EDUCATION WAYNE BOARD OF EDUCATION WEEHAWKEN TWP BOARD OF EDUCATION (*)WENONAH BOROUGH BOARD OF EDUCATION (*)WEST AMWELL TWP BOARD OF EDUCATION (*)WEST CAPE MAY BORO BOARD OF EDUCATION (*)WEST DEPTFORD TWP BOARD OF EDUCATION WEST ESSEX REGIONAL SCHOOL DISTRICT (*)WEST LONG BRANCH BOARD OF EDUCATION WEST MILFORD TOWNSHIP BOARD OF EDUCA-TION WEST MORRIS REGIONAL HIGH SCHOOL DIS-TRICT (*)WEST NEW YORK BOARD OF EDUCATION (*)WEST ORANGE TOWNSHIP BOARD OF EDUCA-TION WEST PATERSON BORO BOARD OF EDUCATION(*)WEST WINDSOR PLAINSBORO REGIONAL (*)WESTAMPTON TOWNSHIP BOARD OF EDUCATION WESTFIELD TOWN BOARD OF EDUCATION WESTVILLE BOARD OF EDUCATION (*)WESTWOOD REGIONAL SCHOOL DISTRICT (*)WEYMOUTH TOWNSHIP BOARD OF EDUCATION (*)WHARTON BOROUGH BOARD OF EDUCATION (*)WHITE TOWNSHIP BOARD OF EDUCATION WILDWOOD CITY BOARD OF EDUCATION (*)WILDWOOD CREST BOARD OF EDUCATION (*)WILLINGBORO TWP BOARD OF EDUCATION (*)WINFIELD TOWNSHIP BOARD OF EDUCATION (*)WINSLOW TOWNSHIP BOARD OF EDUCATION WOODBINE BOROUGH BOARD OF EDUCATION WOODBRIDGE TOWNSHIP BOARD OF EDUCATION WOODBURY CITY BOARD OF EDUCATION WOODBURY HEIGHTS BOARD OF EDUCATION (*)WOODCLIFF LAKE BOARD OF EDUCATION (*)WOODLAND TWP BOARD OF EDUCATION (*)WOODLYNNE BOARD OF EDUCATION (*)WOOD-RIDGE BOARD OF EDUCATION (*)WOODSTOWN-PILESGROVE REGIONAL SCHOOL WYCKOFF TOWNSHIP BOARD OF EDUCATION (*)

ATLANTIC CAPE COMMUNITY COLLEGE (*)BERGEN COMMUNITY COLLEGE (*)BROOKDALE COMMUNITY COLLEGE (*)BURLINGTON CO COLLEGE (*)CAMDEN COUNTY COLLEGE (*)CUMBERLAND COUNTY COLLEGE (*)ESSEX COUNTY COLLEGE (*)GLOUCESTER COUNTY COLLEGE (*)HUDSON CO COMMUNITY COLLEGE (*)MERCER CO COMMUNITY COLLEGE (*)MIDDLESEX COUNTY COLLEGE MORRIS COUNTY COLLEGE (*)OCEAN COUNTY COLLEGE (*)PASSAIC COUNTY COMMUNITY COLLEGE (*)RARITAN VALLEY COMMUNITY COLLEGE (*)SALEM COMMUNITY COLLEGE (*)SUSSEX COUNTY COMM. COLLEGE (*)UNION COUNTY COLLEGE (*)

WARREN COUNTY COMMUNITY COLLEGE (*)

ACADEMY FOR URBAN LEADERSHIPACADEMY CHARTER HIGH SCHOOL ADELAIDE SANFORD CHARTER SCHOOLBARACK OBAMA GREEN CHARTER HIGH SCHOOLBERGEN ARTS AND SCIENCE CHARTER SCHOOLBURCH CHARTER SCHOOL FOR EXCELLENCECAMDEN ACADEMY CHARTER HIGH SCHOOL CAMDEN PROMISE CHARTER SCHOOL CAMDEN’S PRIDE CHARTER SCHOOLCENTRAL JERSEY ARTS CHARTER SCHOOL (*)CENTRAL JERSEY COLLEGE PREP CHARTER CHARTER TECH (*)CLASSICAL ACAD. CHARTER SCHOOL (*)COMMUNITY CHARTER SCHOOL OF PATERSONDR LENA EDWARDS ACADEMY CHATER SCHOOLD.U.E. SEASON CHARTER SCHOOL (*)DISCOVERY CHARTER SCHOOL (*)EAST ORANGE COMMUNITY CHART SCHOOL ECO CHARTER SCHOOL ELYSIAN CHARTER SCHOOL OF HOBOKEN (*)EMILY FISHER CHARTER SCHOOL (*)ENGLEWOOD ON THE PALISADES CHAR (*)ETHICAL COMMUNITY CHARTER SCHOOL JERSEYCITYFOUNDATION ACADEMY CHARTER SCHOOL (*)FRANKLIN CHARTER SCHOOL FREEDOM ACADEMY CHARTER SCHOOL GALLOWAY COMMUNITY CHARTER SCHOOL GATEWAY CHARTER SCHOOL GRANVILLE CHARTER MIDDLE SCHOOL GRAY CHARTER SCHOOL (*)GREAT OAKS CHARTER SCHOOLGREATER BRUNSWICK CHART SCHOOL (*)HATIKVAH INTERNATIONAL ACADEMY CHARTERSCHOOLHOBOKEN CHARTER SCHOOLHOBOKEN DUAL LANGUAGE CHARTER SCHOOLHOPE ACADEMY CHARTER SCHOOLINSTITUTE FOR EXCELLENCE CHARTER SCHOOL INTERNATIONAL CHARTER SCHOOL JERSEY CITY COMM CHARTER SCHOOL (*)JERSEY CITY GOLDEN DOOR CHARTER JOHN P HOLLAND CHARTER SCHOOLLADY LIBERTY ACADEMY CHARTER SCHOOL LEAP ACADEMY CHARTER SCHOOL LEARNING COMM. CHARTER SCHOOL (*)LIBERTY ACADEMY CHARTER SCHOOL MARIA L. VARISCO-ROGERS CHARTER (*)MARION P. THOMAS CHARTER SCHOOL (*)METS CHATER SCHOOLMILLVILLE PUBLIC CHARTER SCHOOLNEW HORIZON COMMUNITY CHARTER SCHOOL NEWARK LEGACY CHARTER SCHOOLNEWARK CHARTER SCHOOL (*)NEWARK EDUCATORS’ COMMUNITY CHARTERSCHOOLNORTH STAR ACADEMY CHARTER SCHOOL OCEANSIDE CHARTER SCHOOL PACE CHARTER SCHOOL OF HAMILTON (*)PATERSON CHART SCHOOL - SCIENCE/TECHPAUL ROBESON CHARTER SCHOOL PEOPLES PREPARATORY CHATER SCHOOLPLEASANTECH ACADEMY CHARTER SCHOOLPRIDE ACADEMY CHARTER SCHOOLPRINCETON CHARTER SCHOOL

QUEEN CITY ACADEMY CHARTER SCHOOL RED BANK CHARTER SCHOOL RENAISSANCE REGIONAL LEADERSHIP CHARTERSCHOOLRIDGE AND VALLEY CHARTER SCHOOLRIVERBANK CHARTER SCHOOL OF EXCELLENCE ROBERT TREAT ACADEMY CHARTER SCHOOL ROSEVILLE COMMUNITY CHARTER SCHOOLSCHOMBURG CHARTER SCHOOL SOARING HEIGHTS CHARTER SCHOOL (*)SUSSEX COUNTY CHARTER SCHOOL TEAM ACADEMY CHARTER SCHOOL TEANECK COMMUNITY CHARTER SCHOOL (*)TRENTON COMMUNITY CHARTER SCHOOL (*)UNION COUNTY TEAMS CHARTER SCHOOL UNITY CHARTER SCHOOL (*)UNIVERSITY ACADEMY CHARTER HIGH SCHOOL UNIVERSITY HEIGHTS CHARTER SCHOOL (*)VILLAGE CHARTER SCHOOL (*)VINELAND PUBLIC CHARTER SCHOOLVISIONS ACADEMY CHARTER HIGH SCHOOL

COMMUNICATIONS WORKERS OF AMERICA NEWARK TEACHERS' UNION NJ STATE FEDERATION OF TEACHERS NJEA PISCATAWAY TWP EDUCATION ASSOCIATION TRENTON EDUCATION ASSOCIATION WOODBRIDGE TWP ED ASSOCIATION CAMDEN CO ED SERVICES COMMISSION

ESSEX CO EDUCATIONAL SERVICE COMMISSIONHUNTERDON CO EDUCATION SERVICES COMMIS-SIONMIDDLESEX CO ED SERVICES COMMISSIONMONMOUTH OCEAN EDUCATION SERVICE COM-MISSIONMORRIS CO EDUCATION SERVICES COMMISSIONPASSAIC CO. EDUCATION SERVICES COMMISSION(*)SOMERSET CO EDUCATIONAL SERVICES COM-MISSION (*)SUSSEX CO ED SERVICES COMM BD OF EDUCA-TION (*)UNION CO EDUCATIONAL SERVICES COMMISSION(*)

RAMAPO COLLEGE OF NEW JERSEY (*)RICHARD STOCKTON COLLEGE OF NJ (*)STATE LIBRARY AFFILIATED W/TESC (*)THE COLLEGE OF NEW JERSEY (*)THOMAS EDISON STATE COLLEGE (*)

ATLANTIC CO SPECIAL SERVICES (*)BERGEN CO BD OF SPECIAL SERVICES BURLINGTON CO BD SPECIAL SERVICES CAPE MAY CO SPECIAL SERVICES (*)GLOUCESTER CO SP SERVICES SCHOOL DIS-TRICT MERCER CO SPECIAL SER SCHOOL DIST SALEM CO SP SERVICES SCHOOL DIST (*)STOCKTON AFFILIATED SERVICES INCWARREN CO SP SERVICES SCHOOL DIST

KEAN UNIVERSITY (*)MONTCLAIR STATE UNIVERSITY (*)NEW JERSEY CITY UNIVERSITY (*)NJ INSTITUTE OF TECHNOLOGY (*)ROWAN UNIVERSITY (*)





ABERDEEN TWP FIRE DIST 2 ABERDEEN TWP FIRE DISTRICT 1 (*)BORDENTOWN FIRE DISTRICT #1 (*)BORDENTOWN TWP FIRE DISTRICT 2 (*)BRICK TOWNSHIP FIRE DIST 2 BRICK TWP FIRE DISTRICT 1 BRICK TWP JOINT BOARD OF FIRE COMMISSION(*)BURLINGTON TWP FIRE DISTRICT 1 CHERRY HILL FIRE DISTRICT 13 CHESTERFIELD-HAM. FIRE DISTRICT #1 (*)CINNAMINSON TWP FIRE DIST #1 DELRAN TWP FIRE DISTRICT #1 (*)DEPTFORD TWP FIRE DISTRICT (*)DOVER TWP FIRE DISTRICT 2 EAST BRUNSWICK TWP FIRE DISTRICT #1 FLORENCE TWP. FIRE DISTRICT #1 GLOUCESTER TWP FIRE DISTRICT 2 GLOUCESTER TWP FIRE DISTRICT 3 (*)GLOUCESTER TWP FIRE DISTRICT 4 GLOUCESTER TWP FIRE DISTRICT 5 (*)GLOUCESTER TWP FIRE DISTRICT 6 (*)HADDON TWP FIRE DISTRICT 1 (*)HAMILTON TWP FIRE DISTRICT 2 (*)HAMILTON TWP FIRE DISTRICT 3 (*)HAMILTON TWP FIRE DISTRICT 4 (*)HAMILTON TWP FIRE DISTRICT 5 (*)HAMILTON TWP FIRE DISTRICT 6 (*)HAMILTON TWP FIRE DISTRICT 7 (*)HAMILTON TWP FIRE DISTRICT 8 (*)HAMILTON TWP FIRE DISTRICT 9 (*)HANOVER TWP FIRE DISTRICT 2 HANOVER TWP FIRE DISTRICT 3 HARRISON TOWNSHIP FIRE DISTRICT #1 HAZLET TOWNSHIP FIRE DISTRICT #1 HOPEWELL TWP FIRE DISTRICT 1 (*)HOWELL TWP FIRE DISTRICT 1 HOWELL TWP FIRE DISTRICT 2 HOWELL TWP FIRE DISTRICT 3 (*)HOWELL TWP FIRE DISTRICT 4 JACKSON BD FIRE DISTRICT 2 (*)JACKSON TWP FIRE DISTRICT 3 (*)JACKSON TWP FIRE DISTRICT 4 JERSEY CITY FIRE DEPARTMENTLAKEWOOD TWP FIRE DISTRICT 1 LAMBERTVILLE CITY FIRE DISTRICT #1 LINDENWOLD TWP FIRE DISTRICT 1 (*)MANALAPAN FIRE DISTRICT 2 MANALAPAN TWP FIRE DISTRICT 1 MANASQUAN BORO FIRE DISTRICT 1 MARLBORO TWP FIRE DISTRICT 1 MARLBORO TWP FIRE DISTRICT 3

MIDDLE TOWNSHIP FIRE DISTRICT #1 (*)MILLSTONE TOWNSHIP FIRE DISTRICT #1 (*)MONROE TWP FIRE DISTRICT 1 (*)MONROE TWP FIRE DISTRICT 2 (*)MONROE TWP FIRE DISTRICT 3 (*)MONTVILLE TWP FIRE DISTRICT 1 (*)MONTVILLE TWP FIRE DISTRICT 3 (*)MOORESTOWN TWP FIRE DISTRICT 1 (*)MOORESTOWN TWP FIRE DISTRICT 2 MOUNT LAUREL FIRE DISTRICT #1 (*)NEPTUNE FIRE DISTRICT 1 (*)NORTH HUDSON REGIONAL FIRE & RESCUE OCEAN GROVE BOARD OF FIRE COMMISSION OCEAN TWP FIRE DISTRICT 1 (*)OCEAN TWP FIRE DISTRICT 2 (*)OLD BRIDGE TWP DISTRICT 1 OLD BRIDGE TWP FIRE DISTRICT 2 OLD BRIDGE TWP FIRE DISTRICT 3 (*)OLD BRIDGE TWP FIRE DISTRICT 4 PINE HILL FIRE DISTRICT 1 PINE HILL FIRE DISTRICT 1 PLAINSBORO TWP FIRE DISTRICT 1 (*)PLUMSTED FIRE DISTRICT #1 (*)RIVERSIDE TWP FIRE DISTRICT # 1 TOMS RIVER TWP FIRE DISTRICT 1 TOWACO FIRE DISTRICT 2 VOORHEES FIRE DISTRICT (*)WALL TOWNSHIP FIRE DISTRICT 2 WALL TOWNSHIP FIRE DISTRICT 3 WASHINGTON TWP BOARD OF FIRE COMMISSION WASHINGTON TWP FIRE DISTRICT #1 WESTVILLE FIRE DISTRICT # 1 WINSLOW TWP FIRE DISTRICT 1 (*)WOODBRIDGE BD OF FIRE COMMISSION 9 WOODBRIDGE FIRE DISTRICT 5 (*)WOODBRIDGE TWP FIRE DISTRICT 2 (*)WOODBRIDGE TWP FIRE DISTRICT #12 WOODBRIDGE TWP FIRE DISTRICT 1 (*)WOODBRIDGE TWP FIRE DISTRICT 11 WOODBRIDGE TWP FIRE DISTRICT 8 WOODBRIDGE TWP FIRE DISTRICT 7 (*)

ASBURY PARK HOUSING AUTHORITY (*)ATLANTIC CITY HOUSING AUTHORITY (*)BAYONNE HOUSING AUTHORITY (*)BELMAR HOUSING AUTHORITY BERGEN CO HOUSING AUTHORITY BERKELEY TWP HOUSING AUTHORITY (*)BEVERLY CITY HOUSING AUTHORITY (*)BOONTON HOUSING AUTHORITY (*)BRICK TWP HOUSING AUTHORITY (*)BRIDGETON CITY HOUSING AUTH (*)

BUENA BORO HOUSING AUTH (*)BURLINGTON CITY HOUSING AUTH (*)CAMDEN CITY HOUSING AUTHORITY (*)CAPE MAY CITY HOUSING AUTHORITY (*)CARTERET HOUSING AUTHORITY (*)CLEMENTON HOUSING AUTHORITY CLIFFSIDE PARK HOUSING (*)COLLINGSWOOD BORO HOUSING AUTH (*)DOVER TOWN HOUSING AUTHORITY EAST ORANGE HOUSING AUTHORITY (*)EDGEWATER HOUSING AUTHORITY (*)EDISON TWP HOUSING AUTHORITY (*)ELIZABETH CITY HOUSING AUTHORITY (*)ENGLEWOOD HOUSING AUTHORITY (*)FLORENCE TWP HOUSING AUTHORITY FORT LEE HOUSING AUTHORITY (*)FRANKLIN TWP HOUSING AUTHORITY FREEHOLD BORO HOUSING AUTHORITY (*)GARFIELD HOUSING AUTHORITY (*)GLASSBORO BOROUGH HOUSING AUTHORITY (*)GLOUCESTER CO HOUSING AUTHORITY (*)GLOUCESTER TWP HOUSING AUTHORITY (*)GUTTENBERG HOUSING AUTHORITY (*)HACKENSACK HOUSING AUTHORITY (*)HADDON TOWNSHIP HOUSING AUTHORITY (*)HARRISON TOWN HOUSING AUTHORITY HIGHLAND PARK HOUSING AUTHORITY (*)HIGHLANDS HOUSING AUTHORITY (*)HIGHTSTOWN BORO HOUSING AUTHORITY (*)HOBOKEN HOUSING AUTHORITY (*)IRVINGTON HOUSING AUTHORITY (*)JERSEY CITY HOUSING AUTHORITY (*)KEANSBURG BORO HOUSING AUTHORITY (*)LAKEWOOD HOUSING AUTHORITY LINDEN CITY HOUSING AUTHORITY (*)LODI HOUSING AUTHORITY (*)LONG BRANCH CITY HOUSING AUTHORITY (*)MADISON BORO HOUSING AUTHORITY MIDDLETOWN TWP HOUSING AUTHORITY (*)MILLVILLE HOUSING AUTHORITY MORRIS COUNTY HOUSING AUTHORITY MORRISTOWN HOUSING AUTHORITY (*)NEPTUNE CITY HOUSING AUTHORITY NEPTUNE TWP HOUSING AUTHORITY (*)NEW BRUNSWICK HOUSING AUTHORITY (*)NEWARK HOUSING AUTHORITY (*)NEWTON TOWN HOUSING AUTHORITY (*)NORTH BERGEN HOUSING AUTHORITY (*)OCEAN CITY HOUSING AUTHORITY (*)OLD BRIDGE HOUSING AUTHORITY ORANGE CITY HOUSING AUTHORITY (*)PASSAIC CITY HOUSING AUTHORITY (*)


PARTICIPATING AGENCIES AND AUTHORITIES


RUTGERS UNIVERSITY (*)UNIV. OF MEDICINE & DENTISTRY - NEWBRUNSWICK (*)UNIV. OF MEDICINE & DENTISTRY - NEWARK (*)UNIV. OF MEDICINE & DENTISTRY - STRATFORD (*)WILLIAM PATERSON UNIVERSITY OF NJ (*)

ATLANTIC CO VOCATIONAL SCHOOLS (*)BERGEN CO VOCATIONAL SCHOOL BURLINGTON CO INSTITUTE OF TECH

CAMDEN COUNTY TECHNICAL SCHOOLS (*)CAPE MAY CO TECHNICAL SCHOOL DIST CUMBERLAND CO BD OF VOC ED ESSEX CO VOCATIONAL SCHOOL GLOUCESTER CO VO-TECH SCHOOL DIST HUDSON CO SCHOOLS OF TECHNOLOGY HUNTERDON COUNTY VOCATIONAL (*)MERCER CO VOCATIONAL SCHOOLS MIDDLESEX CO VOCATIONAL SCHOOL (*)

MONMOUTH CO VOCATIONAL SCHOOLS (*)MORRIS CO VOCATIONAL SCHOOL DISTRICT OCEAN COUNTY VOCATIONAL SCHOOL (*)PASSAIC CO VOCATIONAL SCHOOL SALEM CO VOCATIONAL SCHOOL (*)SOMERSET CO VOCATIONAL SCHOOL SUSSEX COUNTY VOCATIONAL UNION CO VOCATIONAL SCHOOLS (*)WARREN CO VOCATIONAL SCHOOL (*)




PATERSON HOUSING AUTHORITY (*)PENNS GROVE HOUSING AUTHORITY (*)PERTH AMBOY HOUSING AUTHORITY PHILLIPSBURG HOUSING AUTHORITY PLAINFIELD HOUSING AUTHORITY (*)PLEASANTVILLE HOUSING AUTHORITY (*)PRINCETON HOUSING AUTHORITY (*)RAHWAY CITY HOUSING AUTHORITY (*)RED BANK BORO HOUSING AUTH (*)SALEM CITY HOUSING AUTHORITY (*)SAYREVILLE HOUSING AUTHORITY (*)SECAUCUS HOUSING AUTHORITYSOUTH AMBOY HOUSING AUTHORITY (*)TRENTON HOUSING AUTHORITY (*)UNION CITY HOUSING AUTHORITY (*)VINELAND HOUSING AUTHORITY WEEHAWKEN TWP HOUSING AUTHORITY (*)WEST NEW YORK HOUSING AUTHORITY WILDWOOD CITY HOUSING AUTHORITY (*)WOODBRIDGE HOUSING AUTHORITY (*)

CAMDEN CO HEALTH SERVICES CENTER ESSEX REGIONAL HEALTH COMMISSION (*)HUDSON REGIONAL HEALTH COMMISSION (*)MID BERGEN REGIONAL HEALTH COMMISSION (*)MIDDLE BROOK REGIONAL HEALTH COMMISSION(*)MONMOUTH CO HEALTH DEPARTMENT (*)MONMOUTH CO REGIONAL HEALTH COMMISSION1 NORTHWEST BERGEN HEALTH COMMISSION (*)OCEAN CO BOARD OF HEALTH

MIDDLESEX CO JOINT HEALTH INSURANCE FUND MIDDLESEX CO MUNICIPAL JOINT INSURANCEFUND (*)NJ SCHOOL BOARD ASSOCIATION INSURANCEGROUP (*)STATEWIDE INSURANCE FUND BAYSHORE JOINTURE COMMISSION (*)MORRIS-UNION JOINTURE COMMISSIONSOUTH BERGEN JOINTURE COMMISSION

BURLINGTON COUNTY BRIDGE COMMISSIONCAPE MAY CO BRIDGE COMMISSION (*)ESSEX & UNION JOINT MEETING (*)MADISON-CHATHAM JOINT MEETING (*)SECOND RIVER JOINT MEETING

GENERAL ASSEMBLY (*)SENATE (*)

BEDMINSTER & FAR HILLS PUB LIBRARY (*)CHATHAM JOINT FREE PUBLIC LIBRARY (*)CHESTER BORO/TWP PUBLIC LIBRARY (*)ELIZABETH PUBLIC LIBRARY (*)HILLSIDE PUBLIC LIBRARY LINDEN CITY FREE PUBLIC LIBRARY MATAWAN ABERDEEN PUBLIC LIBRARY (*)MONTCLAIR LIBRARY (*)MORRISTOWN/MORRIS JOINT LIBRARY (*)ORANGE CITY LIBRARY PRINCETON JOINT PUBLIC LIBRARY (*)RAHWAY PUBLIC LIBRARY RIDGEWOOD PUBLIC LIBRARY (*)ROSELLE BOROUGH UNION TOWNSHIP LIBRARY WEST ORANGE LIBRARY (*)

ATLANTIC CITY CONVENTION CENTER (*)NJ PUBLIC BROADCASTING AUTHORITYNORTHWEST BERGEN CENTRAL DISPATCH (*)TRENTON DOWNTOWN ASSOCIATION

MIDDLESEX CO MOSQUITO EXTERMINATIONCOMMISSION MONMOUTH CO MOSQUITO EXTERMINATIONCOMM (*)OCEAN CO MOSQUITO COMMISSION (*)SALEM CO MOSQUITO COMMISSION (*)WARREN CO MOSQUITO EXTERMINATION COM-MISSION

CAMDEN COUNTY PARK POLICE MERCER COUNTY PARK COMMISSION (*)MORRIS COUNTY PARK COMMISSION SOMERSET CO PARK COMMISSION

BAYONNE CITY PARKING AUTHORITY (*)BLOOMFIELD PARKING AUTHORITY (*)CAMDEN CITY PARK AUTHORITY (*)DOVER TWP PARKING AUTHORITY DUNELLEN PARKING AUTHORITY (*)EAST ORANGE PARKING AUTHORITY (*)ELIZABETH CITY PARKING AUTHORITY (*)FORT LEE PARKING AUTHORITY HACKETTSTOWN PARKING AUTHORITY HOBOKEN CITY PARKING AUTHORITY JERSEY CITY PARKING AUTHORITY (*)LONG BRANCH PARKING AUTHORITY (*)METUCHEN PARKING AUTHORITY MONTCLAIR PARKING AUTHORITY (*)MORRISTOWN PARKING AUTHORITY NEW BRUNSWICK PARKING AUTHORITY (*)NEWARK PARKING AUTHORITY NORTH BERGEN PARKING AUTHORITY NORTH PLAINFIELD PARKING AUTHORITY (*)PATERSON PARKING AUTHORITY (*)PERTH AMBOY CITY PARKING AUTHORITY RAHWAY PARKING AUTHORITY (*)SOUTH ORANGE TWP PARKING AUTHORITY (*)SOUTH RIVER PARKING AUTHORITY TRENTON PARKING AUTHORITY (*)UNION CITY PARKING AUTHORITY WEST NEW YORK PARKING AUTHORITY WEST WINDSOR PARKING AUTHORITY (*)

CAMDEN CO POLLUTION CONTROL FIN UNION CO POLLUTION CONTROL AUTHORITY WARREN CO POLLUTION CONTROL (*)

CARTERET PORT AUTHORITY PERTH AMBOY PORT AUTHORITY SALEM CITY MUNICIPAL PORT AUTHORITY (*)

ATLANTIC CO IMPROVEMENT AUTHORITY (*)BAYONNE LOCAL REDEVELOPMENT AGENCY (*)BERGEN COUNTY IMPROVEMENT AUTHORITY (*)BRIDGETON ZONE DEVELOPMENT AUTHORITY (*)CAMDEN CITY REDEVELOPMENT AGENCY CAMDEN CO IMPROVEMENT AUTHORITY CARTERET REDEVELOPMENT AGENCY (*)CUMBERLAND CO IMPROVEMENT AUTHORITY (*)ESSEX CO IMPROVEMENT AUTHORITY (*)GLOUCESTER CO IMPROVEMENT AUTHORITY GREATER WILDWOOD TOURISM IMP & DA (*)HUDSON CO ECONOMIC DEVELOPMENT CORPO-RATION HUDSON CO IMPROVEMENT AUTHORITY (*)JERSEY CITY REDEVELOPMENT AGENCY (*)MERCER CO IMPROVEMENT AUTHORITY (*)MIDDLESEX COUNTY IMPROVEMENT AUTHORITY PASSAIC COUNTY IMPROVEMENT AUTHORITY RAHWAY CITY REDEVELOPMENT AGENCY SALEM CO IMPROVEMENT AUTHORITY (*)SAYREVILLE ECONOMIC & REDEVELOPMENT

AGENCY (*)SOUTH JERSEY ECONOMIC DEVELOPMENT DIS-TRICT (*)VINELAND-MILLVILLE URBAN ENTERPRISE ZONE(*)WILDWOODS JOINT CONSTRUCTION

CASINO REINVESTMENT DEVELOPMENTAUTHORITY (*)COMPENSATION RATING & INSURANCE BUREAU(*)DELAWARE RIVER BASIN COMMISSION (*)DELAWARE RIVER JOINT TOLL BRIDGE COMMIS-SION DELAWARE RIVER PORT AUTHORITY ED INFORMATION & RESOURCE CENTER FORT MONMOUTH PLANNING AUTHORITY (*)INTERSTATE ENVIRONMENTAL COMMISSION (*)LAKE HOPATCONG COMMISSION (*)MEADOWLANDS CONSERVATION TRUST NJ BUILDING AUTHORITY (*)NJ COMMERCE & ECONOMIC GROWTH COMMIS-SION (*)NJ ECONOMIC DEVELOPMENT AUTHORITY (*)NJ EDUCATIONAL FACILITIES AUTHORITY (*)NJ FIREMENS HOME (*)NJ HEALTH CARE FACILITIES (*)NJ HOUSING & MORTGAGE FINANCE AGENCY (*)NJ MEADOWLAND COMMISSION (*)NJ REDEVELOPMENT AUTHORITY (*)NJ SCHOOLS DEVELOPMENT AUTHORITY (*)NJ SPORTS & EXPOSITION AUTHORITY NJ TRANSIT CORPORATION NJ TURNPIKE AUTHORITY NJ WATER SUPPLY AUTHORITY (*)NORTH JERSEY WATER SUPPLY COMMISSION PALISADES INTERSTATE PARK COMMISSION (*)PASSAIC VALLEY SEWERAGE COMMISSION PINELANDS COMMISSION (*)ROWAN UNIVERSITY FOUNDATION SOUTH JERSEY PORT CORPORATION SOUTH JERSEY TRANSPORTATION AUTHORITY WATERFRONT COMMISSION OF NY HARBOR (*)

JOINT DISPATCH AUTHORITY FOR SPRING LAKE

BERGEN COUNTY SOIL CONSERVATION DISTRICT(*)BURLINGTON CO SOIL CONSERVATION DISTRICT(*)CAMDEN CO SOIL CONSERVATION DISTRICT (*)CAPE ATLANTIC SOIL CONSERVATION DISTRICT(*)CUMBERLAND-SALEM CONSERVATION DISTRICT(*)FREEHOLD SOIL CONSERVATION DISTRICT (*)GLOUCESTER CO SOIL CONSERVATION DISTRICT(*)HUNTERDON CO SOIL CONSERVATION DISTRICT(*)MERCER CO SOIL CONSERVATION DISTRICT (*)MORRIS CO SOIL CONSERVATION DISTRICT (*)OCEAN CO SOIL CONSERVATION DISTRICT (*)SUSSEX CO SOIL CONSERVATION (*)WARREN CO SOIL CONSERVATION DISTRICT (*)

ATLANTIC HIGHLANDS-HIGHLANDS REGIONALSEWERAGE AUTHORITY ATLANTIC CITY MUNICIPAL UTILITIES AUTHORITY(*)ATLANTIC CO UTILITIES AUTHORITY (*)BAYONNE MUNICIPAL UTILITIES AUTHORITY (*)BAYSHORE REGIONAL SEWERAGE AUTHORITY (*)


PARTICIPATING AGENCIES AND AUTHORITIES, Continued



BEACH HAVEN SEWERAGE AUTHORITY (*)BEACHWOOD SEWERAGE AUTHORITY BERGEN CO UTILITIES AUTHORITY BERKELEY TWP SEWERAGE AUTHORITY (*)BERKELEY TWP MUNICIPAL UTILITIES AUTHORITY(*)BERNARDS TWP SEWERAGE AUTHORITY (*)BEVERLY SEWERAGE AUTHORITY (*)BORDENTOWN SEWERAGE AUTHORITY (*)BRICK TWP MUNICIPAL UTILITIES AUTHORITY (*)BUENA BORO MUNICIPAL UTILITIES AUTHORITY(*)CAMDEN CO MUNICIPAL UTILITIES AUTHORITY CAPE MAY COUNTY MUNICIPAL UTILITIESAUTHORITY CARLSTADT SEWERAGE AUTHORITY CARNEYS POINT TWP SEWERAGE AUTHORITY CINNAMINSON SEWERAGE AUTHORITY CLINTON TWP SEWERAGE AUTHORITY (*)CUMBERLAND CO UTILITIES AUTHORITY (*)DELANCO SEWERAGE AUTHORITY (*)DELAWARE TWP MUNICIPAL UTILITIES AUTHORI-TY DELRAN SEWERAGE AUTHORITY (*)DEPTFORD TWP MUNICIPAL UTILITIES AUTHORITY(*)EAST WINDSOR MUNICIPAL UTILITIES AUTHORITY(*)EATONTOWN SEWERAGE AUTHORITY EDGEWATER PARK SEWERAGE AUTHORITY EGG HARBOR TWP MUNICIPAL UTILITIESAUTHORITY (*)ELK TOWNSHIP MUNICIPAL UTILITIES AUTHORITY EVESHAM MUNICIPAL UTILITIES AUTHORITY (*)EWING LAWRENCE SEWERAGE AUTHORITY (*)FLORHAM PARK SEW AUTHORITY FRANKLIN TWP SEWERAGE AUTHORITY (*)GLOUCESTER CO UTILITIES AUTHORITY GLOUCESTER TWP MUNICIPAL UTILITIESAUTHORITY (*)HACKETTSTOWN MUNICIPAL UTILITIES AUTHORI-TY (*)HAMILTON TWP MUNICIPAL UTILITIES AUTHORITY(*)HANOVER SEWERAGE AUTHORITY (*)HAZLET TWP SEWERAGE AUTHORITY (*)HILLSBOROUGH TWP MUN. UTILITIES AUTHORITY(*)HUDSON-ESSEX PASSAIC (*)JACKSON TWP MUNICIPAL UTILITIES AUTHORITY(*)JERSEY CITY INCINERATOR AUTHORITY JERSEY CITY MUNICIPAL UTILITIES AUTHORITY KEARNY MUNICIPAL UTILITIES AUTHORITY (*)LACEY MUNICIPAL UTILITIES AUTHORITY (*)

LAKEWOOD TWP MUNICIPAL UTILITIES AUTHORI-TY (*)LAMBERTVILLE SEWERAGE AUTHORITY (*)LANDIS SEWERAGE AUTHORITY LEBANON BORO SEW AUTHORITY (*)LINDEN ROSELLE SEWERAGE AUTHORITY (*)LITTLE EGG HARBOR MUN. UTILITIES AUTHORITY(*)LOGAN TWP MUNICIPAL UTILITIES AUTHORITY (*)LONG BRANCH SEWERAGE AUTHORITY (*)LOWER TWP MUNICIPAL UTILITIES AUTHORITY (*)MANASQUAN RIVER REGIONAL SEWERAGEAUTHORITIESMANCHESTER UTILITIES AUTHORITY MANTUA TWP MUNICIPAL UTILITIES AUTHORITY(*)MARLBORO TWP MUNICIPAL UTILITIES AUTHORI-TY (*)MERCHANTVILLE PENNSAUKEN WATER COMMIS-SION MIDDLESEX CO UTILITIES AUTHORITY MIDDLETOWN TWP SEWERAGE AUTHORITY (*)MONMOUTH CO BAYSHORE OUTFILL AUTHORITY(*)MONROE TWP MUN. UTILITIES AUTH. (GLOUCES-TER) (*)MONTVILLE TWP MUNICIPAL UTILITIES AUTHORI-TY MOUNT HOLLY MUNICIPAL UTILITIES AUTHORITY MOUNT LAUREL TWP MUNICIPAL UTILITIESAUTHORITY MUSCONETCONG SEWERAGE AUTHORITY (*)NEPTUNE TWP SEWERAGE AUTHORITY (*)NORTH BERGEN MUNICIPAL UTILITIES AUTHORI-TY NORTH HUDSON SEWERAGE AUTHORITY (*)NORTHWEST BERGEN CO UTILITY AUTHORITY (*)OCEAN CO UTILITIES AUTHORITY (*)OCEAN GROVE SEWERAGE AUTHORITY OCEAN TWP MUNICIPAL UTILITY AUTHORITY OCEAN TWP SEWERAGE AUTHORITY (*)OLD BRIDGE MUNICIPAL UTILITY AUTHORITY PASSAIC COUNTY UTILITY AUTHORITY PASSAIC VALLEY WATER COMMISSION PEMBERTON TWP MUNICIPAL UTILITIES AUTHORI-TY (*)PENNS GROVE SEWERAGE AUTHORITY PENNSAUKEN SEWERAGE AUTHORITY (*)PENNSVILLE SEWERAGE AUTHORITY PEQUANNOCK, LINCOLN PARK &FAIRFIELD (*)PINE HILL BORO MUNICIPAL UTILITIES AUTHORI-TY PLAINFIELD AREA REGIONAL SEWER AUTHORITY(*)PLAINFIELD MUNICIPAL UTILITIES AUTHORITY

POMPTON LAKES MUNICIPAL UTILITIES AUTHORI-TY (*)RAHWAY VALLEY SEWERAGE AUTHORITY (*)RARITAN TWP MUNICIPAL UTILITIES AUTHORITY(*)READINGTON-LEBANON SEWERAGE AUTHORITY(*)RIVERSIDE SEW AUTHORITY ROCKAWAY VALLEY REGIONAL SEWER AUTHORI-TY (*)ROCKLEIGH BORO SEWERAGE AUTHORITY RUNNEMEDE SEWERAGE AUTHORITY SECAUCUS MUNICIPAL UTILITIES AUTHORITY SOMERS POINT SEWERAGE AUTHORITY SOMERSET RARITAN VALLEY SEWERAGEAUTHORITY (*)SOMERSET REGIONAL ANIMAL SHELTER (*)SOUTH MONMOUTH REGIONAL SEWERAGEAUTHORITY (*)SOUTH TOMS RIVER SEWERAGE AUTHORITY (*)SOUTHEAST MORRIS CO MUNI UTILITIESAUTHORITY (*)STAFFORD MUNICIPAL UTILITIES AUTHORITY STONY BROOK REGIONAL SEWERAGE AUTHORI-TY (*)SUSSEX CO MUNICIPAL UTILITIES AUTHORITY (*)TOMS RIVER TWP MUNICIPAL UTILITIES AUTHORI-TY (*)TWO RIVERS WATER RECLAMATION AUTHORITY(*)UNION CO UTILITIES AUTHORITY WANAQUE BOROUGH SEWERAGE AUTHORITY (*)WANAQUE VALLEY REGIONAL SEWERAGEAUTHORITY (*)WARREN CO MUNICIPAL UTILITIES AUTHORITY (*)WASHINGTON TWP MUN. UTILITIES AUTH. (MER-CER) WASHINGTON TWP MUN. UTILITY AUTH. (GLOUCES-TER) (*)WASHINGTON TWP MUN. UTILITIES AUTH. (MOR-RIS) (*)WATERFORD TWP MUNICIPAL UTILITIES AUTHORI-TY (*)W. MILFORD TWP MUNICIPAL UTILITIES AUTHORI-TY (*)WESTERN MONMOUTH UTILITIES AUTHORITY (*)WEYMOUTH TWP MUNICIPAL UTILITIES AUTHORI-TY WILLINGBORO MUNICIPAL UTILITIES AUTHORITY(*)WOODBINE MUNICIPAL UTILITIES AUTHORITY (*)WOODSTOWN SEWERAGE AUTHORITY WRIGHTSTOWN MUNICIPAL UTILITIES AUTHORITY(*)


PARTICIPATING AGENCIES AND AUTHORITIES, Continued


PARTICIPATING STATE DEPARTMENTS AND PENSION FUNDS

ALL NEW JERSEY STATE GOVERNMENT DEPARTMENTS AND THEIR ASSOCIATED DIVISIONS

THE FOLLOWING LOCATIONS PARTICIPATE IN THE STATE HEALTH BENEFITS PROGRAM ONLY:

ESSEX COUNTY PENSION FUND

HUDSON COUNTY PENSION FUND

JERSEY CITY PENSION FUND

UMDNJ PENSION FUND



DIVISION OF PENSIONS AND BENEFITS - New Jersey Legislature · DIVISION OF PENSIONS AND BENEFITS A Department of the State of New Jersey COMPREHENSIVE ANNUAL FINANCIAL REPORT for …

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