PUBLIC EMPLOYEES’ RETIREMENT SYSTEM - nvpers.org

1 PUBLIC EMPLOYEES RETIREMENT SYSTEM OF NEVADA A COMPONENT UNIT of the STATE of NEVADA COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2017 Tina Leiss Executive Officer 693 West Nye Lane Carson City, Nevada 89703 (775) 687-4200 5740 South Eastern Avenue, Suite 120 Las Vegas, Nevada 89119 (702) 486-3900 Prepared by PERS Staff PUBLIC EMPLOYEES RETIREMENT SYSTEM OF NEVADA - 20172 2 PUBLIC EMPLOYEES RETIREMENT SYSTEM OF NEVADA 2017 THIS PAGE INTENTIONALLY LEFT BLANK 2017 - PUBLIC EMPLOYEES RETIREMENT SYSTEM OF NEVADA3 2017 PUBLIC EMPLOYEES RETIREMENT SYSTEM OF NEVADA 3 MISSION STATEMENT It is the mission of the PUBLIC Employees RETIREMENT SYSTEM to.

2 Provide PUBLIC workers and their dependents with a RETIREMENT program that provides a reasonable base income for RETIREMENT or for periods where a disability has removed a worker s earning capacity. Encourage those workers to enter into and remain in government service for such periods of time to give PUBLIC employers and the people of the State of Nevada the full benefit of their training and experience. Provide an orderly method of promoting and maintaining a high level of service to the PUBLIC through an equitable separation procedure available to employees at RETIREMENT or upon becoming disabled. PUBLIC EMPLOYEES RETIREMENT SYSTEM OF NEVADA - 20174 4 PUBLIC EMPLOYEES RETIREMENT SYSTEM OF NEVADA 2017 THIS PAGE INTENTIONALLY LEFT BLANK 2017 - PUBLIC EMPLOYEES RETIREMENT SYSTEM OF NEVADA5 2017 PUBLIC EMPLOYEES RETIREMENT SYSTEM OF NEVADA 5 Table of Contents _____ Introductory Section Letter of Transmittal.

3 9 Administrative Personnel .. 15 Organizational Chart .. 16 Certificate of Achievement in Financial Reporting .. 17 PUBLIC Pension Standards Award .. 18 _____ Financial Section Independent Auditors Report .. 21 Management s Discussion and Analysis .. 24 Financial Statements Statement of Fiduciary Net Position .. 28 Statement of Changes in Fiduciary Net Position .. 29 Notes to Financial Statements .. 30 Required Supplementary Information Schedule of Changes in Net Pension Liability and Related Ratios .. 48 Schedule of Employer Contributions .. 50 Schedule of Investment Returns .. 50 Notes to Required Supplementary Information .. 51 Other Supplementary Information Schedule of Administrative Expenses (GAAP Basis).

4 55 Schedule of Administrative Expenses (Non-GAAP Budgetary Basis) .. 56 Reconciliation of GAAP Basis Administrative Expenses to Non-GAAP Budgetary Basis .. 56 Schedule of Investment Expenses .. 57 Schedule of Payments to Consultants .. 57 Combining Schedule of Fiduciary Net Position .. 58 Combining Schedule of Changes in Fiduciary Net Position .. 59 _____ Investment Section Investment Consultants and Counsel .. 62 Consultant s Report of Investment Activity .. 63 Investment Review .. 64 Investment Performance vs. Objective Individual Fiscal Year Return Chart 1 .. 68 Investment Performance vs. Objective Annualized Total Returns Chart 2.

5 68 Asset Mix Chart 3 .. 69 Fair Value of Assets by Investment Directive Chart 4 .. 70 List of Largest Assets Held Chart 5 .. 71 Summary of Actual Performance vs. Objectives Chart 6 .. 72 Investment Performance vs. Objective, Equity Chart 7 .. 73 Investment Performance vs. Objective, International Equity Chart 8 .. 73 PUBLIC EMPLOYEES RETIREMENT SYSTEM OF NEVADA - 20176 6 PUBLIC EMPLOYEES RETIREMENT SYSTEM OF NEVADA 2017 Investment Performance vs. Objective, Fixed Income Chart 9 .. 74 Investment Performance vs. Objective, Private Markets Chart 10 .. 74 Schedule of Fees and Commissions Chart 11 .. 75 _____ Actuarial Section Actuarial Certification Letter.

6 79 Summary of Actuarial Assumptions and Methods .. 83 Schedules of Funding Progress .. 97 RETIREMENT SYSTEM Membership Schedule 1 .. 98 Active Member Valuation Data Schedule 2 .. 98 Pay Status Participants Added to and Removed from the Rolls Schedule 3 .. 99 Solvency Test Schedule 4 .. 100 Analysis of Actuarial Experience Schedule 5 .. 101 Schedule of Employer Contributions Schedule 6 .. 102 Distribution of Retired Members and Beneficiaries by Type .. 103 New Retired Members .. 104 Governmental Accounting Standards Board (GASB) Statement No. 67 Actuarial Certification Letter .. 105 Schedule of Net Pension Liability .. 106 Schedule of Sensitivity of the Net Pension Liability to Changes in the Discount Rate.

7 106 Schedule of Changes in Net Pension Liability .. 107 Schedule of Contributions .. 108 _____ Statistical Section Overview .. 111 Changes in Net Position Schedule 1 .. 112 Benefit and Refund Deductions from Net Position Schedule 2 .. 114 Contribution Rates Schedule 3 .. 116 Retired Members by Type of Benefit Schedule 4 .. 117 Average Benefit Payments Schedule 5 .. 119 New Retired Members Average Benefit Payments Schedule 5- A .. 120 Average Age at RETIREMENT Schedule 6 .. 122 Number of Active Members Per Retiree Schedule 7 .. 122 Schedules of Funding Progress Schedule 8 .. 123 Participating Employers Schedule 9 .. 124 Principal Participating Employers Schedule 10.

8 127 Average Age and Service Statistics for Members Schedule 11 .. 128 Average Salaries for Members Schedule 12 .. 128 _____ Plan Summary .. 131 2017 - PUBLIC EMPLOYEES RETIREMENT SYSTEM OF NEVADA7 2017 PUBLIC EMPLOYEES RETIREMENT SYSTEM OF NEVADA 7 _____ _____ INTRODUCTORY SECTION PUBLIC EMPLOYEES RETIREMENT SYSTEM OF NEVADA - 20178 8 PUBLIC EMPLOYEES RETIREMENT SYSTEM OF NEVADA 2017 THIS PAGE INTENTIONALLY LEFT BLANK 2017 - PUBLIC EMPLOYEES RETIREMENT SYSTEM OF NEVADA9 2017 PUBLIC EMPLOYEES RETIREMENT SYSTEM OF NEVADA 9 December 7, 2017 Dear Chairman and Members of the Board.

9 It is a pleasure to present the Comprehensive Annual Financial Report (CAFR) of the PUBLIC Employees RETIREMENT SYSTEM of Nevada ( SYSTEM or PERS), a component unit of the State of Nevada, for the fiscal year ended June 30, 2017. The financial statements included in this report are the responsibility of the SYSTEM s management and have been prepared in accordance with generally accepted accounting principles as promulgated or adopted by the Governmental Accounting Standards Board (GASB). In management s opinion, the financial statements present fairly the financial position of the SYSTEM at June 30, 2017, and changes in fiduciary net position for the year then ended.

10 The SYSTEM was established by the Nevada Legislature in 1947. By July 1, 1949, the SYSTEM had approximately 3,000 members and 64 retirees. At the end of fiscal year 2017, the SYSTEM had 206 participating employers, 105,801 active members, and 64,130 benefit recipients. The SYSTEM is comprised of two sub-funds, Regular, consisting of members who are not police or fire employees, and Police and Firefighters (Police/Fire). The Regular sub-fund was established to provide RETIREMENT , disability, and survivor benefits for PUBLIC employees with the exception of those who are police officers or firefighters. The Police/Fire sub-fund was established to segregate accounting for RETIREMENT and survivor benefits related to members who are police officers or firefighters.