Plan Data | Public Plans Data

TN State and Teachers Basics

Established 1972
Currently open to new hires
Plan covers state employees
Plan members covered by Social Security
Teachers are covered under a cost sharing plan; state employees are covered under a multi-employer agent plan

Assets, Participants, and Benefits

State and local government pension benefits are paid from trust funds to which public employees and their employers contributed while they were working, not from general operating revenues. Trust fund assets are invested and grow over time. The combined value of defined benefit plan assets held by state and local governments as of Q2 2018 increased to $4.3 trillion, from $4.0 trillion as of Q2 2017 (Federal Reserve Flow of Funds, March 2019). PPD data covers the period from 2001 to the most recently available plan reports, and the historical charts presented in this page mirror the period for which PPD data are available.

Assets at Year-End, TN State and Teachers, 2001-2018

Fiscal Year	Net Assets (billions)
2001	20.6
2002	19.9
2003	20.4
2004	21.9
2005	23.2
2006	24.4
2007	27.3
2008	26.5
2009	21.9
2010	23.6
2011	27.6
2012	28.5
2013	30.5
2014	34.6
2015	34.8
2016	34.6
2017	37.4
2018	39.4

Source: Public Plans Database

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State and local employees make up 13.8 percent of the US workforce. About 25 percent of public sector workers are covered by a public pension in lieu of Social Security, including nearly half of all teachers and over two-thirds of firefighters and public safety officers. Public employees live in every city and county in the nation; more than 90 percent retire in the same jurisdiction where they worked. PPD data covers the period from 2001 to the most recently available plan reports, and the historical charts presented in this page mirror the period for which PPD data are available.

Number of Actives per Annuitant, 2001-2018

Fiscal Year	TN State and Teachers	US State and Local Pensions
2001	2.2	2.5
2002	2.2	2.4
2003	2.1	2.3
2004	2.1	2.2
2005	2.0	2.1
2006	2.0	2.1
2007	1.9	2.0
2008	1.8	2.0
2009	1.8	1.9
2010	1.7	1.8
2011	1.6	1.7
2012	1.5	1.6
2013	1.5	1.5
2014	1.4	1.5
2015	1.3	1.5
2016	1.2	1.4
2017	1.2	1.4
2018	1.1	1.3

Source: Public Plans Database

National data averages are weighted by plan size.

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2018 Membership for TN State and Teachers

Actives	Beneficiaries	Total Membership
138,926	123,215	292,512

Source: Public Plans Database

Costs

The Annual Required Contribution (ARC) is the amount needed to finance benefits accrued each year, plus the cost to amortize unfunded liabilities from past years, minus required employee contributions. It is a projection that matches a yearly payment amount to a particular amortization period, taking into consideration an assortment of assumptions adopted by the plan. In practice, all plans do not calculate the ARC in the same manner. Assumptions used to calculate the ARC reflect actual plan experience, including investment return , actuarial cost, salary growth, total payroll growth and mortality, as well as an adopted amortization method. These assumptions and methods will differ from one plan another, so caution should be taken when comparing ARC between plans. PPD data covers the period from 2001 to the most recently available plan reports, and the historical charts presented in this page mirror the period for which PPD data are available.

Employer's Annual Required Contribution as a Percentage of Payroll and Portion Paid for TN State and Teachers, 2001-2018

Fiscal Year	Portion of Employer ARC paid	US Avg Employer ARC	ARC as a Percent of Payroll	{role:annotation}
2001	5.2	5.0	5.2	5.2
2002	5.3	4.8	5.3	5.3
2003	5.5	5.7	5.5	5.5
2004	5.4	7.3	5.4	5.4
2005	8.5	9.0	8.5	8.5
2006	8.6	9.3	8.6	8.6
2007	9.8	10.0	9.8	9.8
2008	10.1	10.4	10.1	10.1
2009	9.6	10.2	9.6	9.6
2010	9.6	10.5	9.6	9.6
2011	11.9	12.5	11.9	11.9
2012	11.9	12.9	11.9	11.9
2013	11.8	13.9	11.8	11.8
2014	12.5	14.5	12.5	12.5
2015	12.3	14.9	12.3	12.3
2016	12.1	14.8	12.1	12.1
2017	12.0	15.1	12.0	12.0
2018	13.3	18.1	13.3	13.3

Source: Public Plans Database

National data averages are weighted by plan size.

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Actuarial Funding

While funded ratios among pension plans vary substantially, in the aggregate, public pension funding levels rose steadily during the 1990s, due largely to strong returns in global equity markets. Since then, sharp market downturns in 2000-02 and 2008-09 negatively affected asset values and increased unfunded pension liabilities and required contributions. A combination of the market downturns, insufficient contributions (for some plans), and increased benefit levels (also for some plans) resulted in a decline in aggregate funding level between 2001 and 2012, and has since remained relatively stable.

Actuarial Funded Ratio for TN State and Teachers, 2001-2018

Fiscal Year	TN State and Teachers	National Data
2001	99.6	106.5
2002	99.7	101.1
2003	99.8	94.2
2004	99.8	93.1
2005	99.8	91.1
2006	97.9	90.5
2007	96.2	91.2
2008	93.3	90.2
2009	90.6	83.2
2010	91.4	81.5
2011	92.1	80.4
2012	92.7	78.9
2013	93.3	78.7
2014	94.3	79.0
2015	95.2	78.2
2016	95.4	76.3
2017	93.2	76.4
2018	93.4	76.5

Note: National data reflects the average for plans of similar type and Social Security coverage.

Source: Public Plans Database

National data averages are weighted by plan size and reflects the average for plans of similar type and Social Security coverage.

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Investments

The major asset allocation classes presented in the PPD are generated from the specific asset classes that plans report. For consistent reporting in the PPD, the individual asset classes reported by plans are categorized as one of eight major asset classes: equity, fixed income, real estate, private equity, hedge funds, commodities, misc. alternative assets, cash, and other. For more details on the PPD allocation data please see documentation.

Asset Allocation for TN State and Teachers, 2018

Category	Percent
Equities	52.3
Fixed Income	28.8
Private Equity	10.0
Real Estate	8.3
Cash	0.6
Other	0.0
Commodities	0.0
Hedge Fund	0.0
Misc. Alternatives	0.0

Source: Public Plans Database

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Asset Allocation for State and Local Pensions, 2018

Category	Percent
Equities	48.3
Fixed Income	22.2
Private Equity	9.0
Real Estate	8.4
Cash	1.8
Other	0.3
Commodities	1.8
Hedge Fund	7.0
Misc. Alternatives	1.2

Source: Public Plans Database

National data averages are weighted by plan size.

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Asset allocation for TN State and Teachers, 2001-2018

Fiscal Year	Equities	Fixed Income	Private Equity	Real Estate	Cash
2001	40.7	52.7	0.0	1.2	5.4
2002	40.6	50.0	0.0	1.5	7.9
2003	35.8	53.3	0.0	1.6	9.3
2004	40.9	50.5	0.0	1.5	7.1
2005	42.0	52.7	0.0	1.6	3.7
2006	43.8	49.3	0.0	3.2	3.6
2007	48.7	45.1	0.0	3.3	2.9
2008	51.4	43.8	0.0	4.2	0.6
2009	39.6	47.2	0.0	4.6	8.6
2010	47.2	47.7	0.1	3.4	1.7
2011	55.1	40.0	0.2	3.2	1.5
2012	56.0	37.9	0.5	3.9	1.7
2013	56.6	35.7	0.7	4.9	2.1
2014	58.2	32.8	2.8	5.3	0.9
2015	55.0	32.5	4.9	6.5	1.0
2016	53.5	31.5	7.0	7.5	0.4
2017	54.4	28.7	8.2	7.7	0.9
2018	52.3	28.8	10.0	8.3	0.6

Source: Public Plans Database

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Annual Return as of June 30 for TN State and Teachers, 2001-2018

Fiscal Year	TN State and Teachers	Assumed return
2001	-1.57	7.50
2002	-1.92	7.50
2003	4.90	7.50
2004	9.32	7.50
2005	7.26	7.50
2006	6.94	7.50
2007	13.15	7.50
2008	-1.21	7.50
2009	-15.27	7.50
2010	10.24	7.50
2011	19.59	7.50
2012	5.61	7.50
2013	9.92	7.50
2014	16.65	7.50
2015	3.33	7.50
2016	2.79	7.50
2017	11.42	7.50
2018	8.19	7.25

Note: The PPD average is for plans with a similar fiscal year end (FYE) date to the plan presented on this page. The FYE date for the majority of plans is either June 30th or December 31st. Those with FYE dates that do not fall on either of those two dates are compared with the June 30th plans. The PPD average return includes plans that report gross returns and returns net of fees.

Source: Public Plans Database

National data averages are weighted by plan size.

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Annualized 5-Year Return

TN State and Teachers	PPD Sample
8.4	8.3

Annualized 10-Year Return

TN State and Teachers	PPD Sample
6.8	6.5

Cash Flows

Cash Flow vs. Total Assets (Millions)
TN State and Teachers
2001-2018

Fiscal Year	Cash Flow	Assets
2001	-310.1	20,578.0
2002	-341.3	19,909.4
2003	-368.9	20,443.3
2004	-419.5	21,894.7
2005	-300.8	23,173.2
2006	-351.9	24,415.5
2007	-346.9	27,271.3
2008	-396.7	26,513.2
2009	-505.2	21,948.7
2010	-571.5	23,609.7
2011	-523.6	27,638.8
2012	-615.8	28,496.6
2013	-734.4	30,484.0
2014	-827.6	34,645.7
2015	-929.6	34,761.3
2016	-1,045.1	34,638.5
2017	-1,095.4	37,407.1
2018	-1,088.7	39,377.3

Source: Public Plans Database

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2018 Cash Flows for TN State and Teachers (millions)

Inflows	Outflows	Investment Gains (losses)	Change in Net Assets
1,061.0	2,149.7	3,058.8	1,970.2

Source: Public Plans Database

Cash Flow as a Percentage of Assets
TN State and Teachers
2001-2018

Fiscal Year	TN State and Teachers	National Average
2001	-1.5	-2.3
2002	-1.7	-2.3
2003	-1.8	-2.6
2004	-1.9	-1.7
2005	-1.3	-1.9
2006	-1.4	-1.9
2007	-1.3	-1.7
2008	-1.5	-1.9
2009	-2.3	-2.7
2010	-2.4	-2.9
2011	-1.9	-2.8
2012	-2.2	-3.1
2013	-2.4	-3.0
2014	-2.4	-2.7
2015	-2.7	-2.8
2016	-3.0	-3.0
2017	-2.9	-2.9
2018	-2.8	-2.4

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Plan Data: TN State and Teachers

TN State and Teachers Basics

Assets, Participants, and Benefits

2018 Membership for TN State and Teachers

Costs

Actuarial Funding

Investments

Annualized 5-Year Return

Annualized 10-Year Return

Cash Flows

2018 Cash Flows for TN State and Teachers (millions)

2019 Financial Reports

Benefits