Investing in Louisiana

The Economic Impact of Louisiana’s Largest Public Retirement System

2016

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• TRSL provides retirement income to thousands of retirees.

With TRSL, more than 75,000 retirees and beneficiaries have a steady, monthly income, giving them buying power in their communities.

• TRSL retirement dollars are critical to local economies.

Approximately 88% of individuals with a TRSL benefit live in Louisiana where they buy local goods and services, and pay taxes.

• TRSL benefits have a billion-dollar impact in Louisiana.

TRSL paid out almost $2 billion in benefits during Fiscal Year 2015. More than $1.75 billion went to retirees and beneficiaries living in Louisiana.

Creating Buying Power

TRSL at a Glance (as of 6/30/15)

Retirees and benefit recipients

75,259

Total benefits paid $1.95 billion

Total benefits paid to in-state recipients

$1.75 billion

Average TRSL monthly benefit

$2,149

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Impacting Louisiana’s Economy

TRSL’s economic impact is comparable to or greater than several other major economic sectors in the state.

The Ripple Effect

• Approximately 18,674 Louisiana jobs and nearly $783 million in income were supported by TRSL pensions.

• Each dollar of a Louisiana pension benefit ultimately supports $1.81 in economic activity/output.

• TRSL benefit recipients generated approximately $309 million in tax revenues for federal, state, and local governments.

Source: “Pensionomics 2014: Measuring the Economic Impact of DB Pension Expenditures,” National Institute on Retirement Security, July 2014

Each year, TRSL benefit payments introduce income into local economies and create a string of economic activity that fuels other industries. This is known as the “ripple effect.”

Source: Bureau of Economic Analysis, U.S. Department of Commerce, Gross Domestic Product by State, Louisiana 2013

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1.0

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$3.0

Agriculture, forestry, fishing, & hunting

Air & rail transportation

Motion picture & sound recording

Information & data processing

Performing arts, spectator sports, museums, & related services

Educational services

Accommodation

TRSL

in billions

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1.0

1.5

2.0

2.5

$3.0

Agriculture, forestry, fishing, & hunting

Air & rail transportation

Motion picture & sound recording

Information & data processing

Performing arts, spectator sports, museums, & related services

Educational services

Accommodation

TRSL

in billions

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TRSL paid out almost $2 billion in retirement benefits in FY 2015. Of that, $1.75 billion went to retirees and beneficiaries living in Louisiana. Approximately 88% of individuals who receive TRSL benefits live in state where they buy local goods and services.

Helping Local Communities

NorthLouisiana

$368.5 Million

CentralLouisiana

$172.9 Million

Acadiana$527.5 Million

FloridaParishes

$441.8 Million

GreaterNew Orleans

$247.5 Million

Every parishin Louisianabenefits from

TRSL pensions.

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TRSL Benefits and Recipients by Parish - FY 2015Parish

No. of recipients

Total benefits

ParishNo. of

recipientsTotal

benefits

Acadia 759 $ 16,783,306 Madison 213 $ 5,402,813

Allen 339 $ 8,203,520 Morehouse 384 $ 9,388,095

Ascension 1,274 $ 32,050,140 Natchitoches 865 $ 24,110,301

Assumption 352 $ 9,122,858 Orleans 3,935 $ 114,530,088

Avoyelles 664 $ 15,081,716 Ouachita 2,434 $ 67,797,258

Beauregard 543 $ 13,388,463 Plaquemines 207 $ 6,119,061

Bienville 267 $ 6,980,197 Pointe Coupee 368 $ 8,822,070

Bossier 1,564 $ 42,002,132 Rapides 2,310 $ 55,315,595

Caddo 4,114 $ 113,995,928 Red River 108 $ 2,723,627

Calcasieu 3,070 $ 78,321,123 Richland 342 $ 8,371,672

Caldwell 172 $ 3,763,716 Sabine 425 $ 10,077,944

Cameron 92 $ 2,673,775 St. Bernard 209 $ 4,531,473

Catahoula 185 $ 3,752,635 St. Charles 710 $ 18,921,686

Claiborne 298 $ 7,201,452 St. Helena 279 $ 6,893,098

Concordia 335 $ 8,356,414 St. James 423 $ 11,821,237

DeSoto 452 $ 11,409,539 St. John the Baptist 543 $ 14,255,734

East Baton Rouge 7,301 $ 228,489,606 St. Landry 1,646 $ 41,575,542

East Carroll 131 $ 3,024,517 St. Martin 696 $ 16,159,641

East Feliciana 277 $ 6,751,798 St. Mary 745 $ 18,410,862

Evangeline 572 $ 13,010,076 St. Tammany 3,180 $ 85,581,226

Franklin 434 $ 10,511,258 Tangipahoa 1,749 $ 47,601,350

Grant 348 $ 7,696,602 Tensas 106 $ 2,303,877

Iberia 1,177 $ 27,835,027 Terrebonne 1,450 $ 36,131,347

Iberville 445 $ 11,978,034 Union 338 $ 7,646,048

Jackson 336 $ 8,133,220 Vermilion 903 $ 21,656,622

Jefferson 4,708 $ 122,321,315 Vernon 654 $ 14,214,954

Jefferson Davis 501 $ 12,506,312 Washington 812 $ 19,096,399

Lafayette 3,176 $ 89,497,269 Webster 754 $ 18,525,146

Lafourche 1,668 $ 45,995,708 West Baton Rouge 299 $ 7,416,231

LaSalle 254 $ 5,454,858 West Carroll 251 $ 6,231,214

Lincoln 1,081 $ 33,113,210 West Feliciana 197 $ 5,519,665

Livingston 1,357 $ 34,547,678 Winn 314 $ 7,255,510

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TRSL creates jobs and opportunities for Louisiana citizens and businesses. Through its alternative assets and real estate program, TRSL has invested more than $316 million in Louisiana businesses.

These investments have enabled businesses to expand their operations through increased staff and additional facilities. TRSL is proud to participate in the growth of the state’s business community through its sound investments.

Investing in Louisiana

First of its kind: TRSL’s $17 million investment in Cheniere Energy Partners in Cameron Parish helped finance the construction of an energy facility capable of exporting liquefied natural gas (LNG). The facility begins operation this year and will be the first in the continental U.S. to package and ship natural gas as LNG.

Louisiana Investments by Sector

Sector Investment

Consumer Discretionary $ 75.3 million

Consumer Durables $ 7.2 million

Consumer Staples $ 9.6 million

Energy $ 85.1 million

Financial $ 23.8 million

Healthcare $ 24.4 million

Industrials $ 42.6 million

Information Technology $ 12.9 million

Materials $ 9.3 million

Real Estate $ 26.3 million

TRSL has invested more than $316 million in Louisiana.

Source: TRSL Partnerships as of September 30, 2015

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Investing in Louisiana TRSL Investments at Work

Seaside Healthcare, based in Shreveport, develops and operates a network of facilities that specialize in mental health treatment services for the adolescent, adult, and geriatric population. Through investments from TRSL, Seaside can provide a comprehensive continuum of care in the area of mental health.

As one of North America’s leading manufacturers of waste and recycling equipment, Wastequip, including its location in Alexandria, specializes in the collection, storage, and transportation of a wide range of waste and recyclables. TRSL’s investment in this industry helps advance the development of products, systems, and solutions for the disposal and reuse of materials.

Through its investment in Mezzo Technologies, Inc., TRSL is creating opportunities for the Baton Rouge-based company to deliver high-performance heat exchange products, such as evaporators, condensers, and radiators. Mezzo engineers and designers strive to strike the perfect balance between performance and affordability for the benefit of many industries, including defense, aerospace, trucking, oil and gas, and professional racing.

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Economic security in retirement is important to all working Americans. Since most TRSL members cannot participate in Social Security, their TRSL benefits are often their only source of income in retirement.

• In FY 2015, the average annual TRSL retirement benefit was $25,787 ($2,149 per month).

• TRSL benefits are a modest, yet reliable, source of income enabling individuals to purchase goods and services even in uncertain economic times.

• Stable pensions promote self-sufficiency instead of dependence on costly government assistance programs.

Promoting Economic Security

TRSL serves one out of every 22 adults in Louisiana by providing critical retirement income to retirees and

beneficiaries, and offering retirement planning services to future retirees.

Average TRSL Benefit

Fiscal Year Monthly Benefit

2015 $2,149

2014 $ 2,102

2013 $ 2,044

2012 $ 2,025

2011 $ 1,989

2010 $ 1,954

2009 $ 1,923

2008 $ 1,892

2007 $ 1,811

2006 $ 1,706

9Source: TRSL Comprehensive Annual Financial Report (CAFR), 2015

TRSL retirement benefits are a key recruiting tool.

A secure pension from TRSL is an employment benefit that helps Louisiana schools recruit and retain qualified teachers.

A skilled workforce strengthens Louisiana’s economy.

TRSL benefits play a critical role in attracting and retaining qualified teachers to train future Louisiana workers.

Impacting Education and Business

Quality educators impact Louisiana’s workforce.

Did You Know?

TRSL Expenses: 10-Year Average (FY 2006 - 2015)

Retirement benefit payments represent 96.6% of all TRSL expenses.

Administrative costs make up less than 1% of TRSL expenses.

Refunds/Other 2.6%

Administrative Costs 0.8%

Benefits 96.6%

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Controlling CostsBENCHMARKING: What gets measured, gets managed. Benchmarking is an independent review of an organization’s efficiencies and cost effectiveness. Since 2003, TRSL has used benchmarking analysis as a management tool to compare its cost effectiveness with similarly sized pension systems.

Investment Program

The latest results show TRSL is in the “high value, low cost” quadrant when compared to similarly sized systems (peers), and all 162 U.S. pension funds participating in the annual benchmarking analysis. TRSL’s total net return was 50 basis points higher than the peer median return, and its costs were $17.8 million lower than the peer median costs.

Pension AdministrationFor the 13th consecutive year, results show TRSL provides a high level of customer service in an efficient, cost-effective manner. TRSL’s cost per active member and retiree is $88 compared to the peer average of $108.

TRSL Costs (per annuitant & active member)

TRSL Actual Cost $88

Peer Group Average Cost $108

Source: CEM Benchmarking, Inc., 2014

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Key PointsTRSL has invested more than $316 million in Louisiana companies, supporting economic and job growth in the state.

TRSL paid almost $2 billion to retirees and beneficiaries in FY 2015. Approximately 88% of TRSL retirees and beneficiaries live in Louisiana, positively impacting local economies across the state.

TRSL pensions support approximately 18,674 Louisiana jobs and nearly $783 million in income, according to the most recent report from the National Institute on Retirement Security (NIRS).

TRSL retirement benefits are a reliable source of income that create economic security for retirees and help stabilize the economy.

TRSL benefits are a key recruitment tool that make teaching a viable career choice.

For the 13th consecutive year, TRSL has been recognized for its cost-effective pension administration, providing a high level of service at a lower cost than peer retirement systems.

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TRSL Board of TrusteesRobert LawyerChair, Colleges & Universities

Holly Bridges Gildig 5th District

Sheryl R. Abshire, Ph.D.Vice Chair, 7th District

Joyce P. Haynes6th District

Kimberly Flair1st District

Jerry J. Baudin, Ph.D.Retirees

John G. Parauka2nd District

James A. Taylor, Sr., J.D., Ph.D.Retirees

Tia T. Mills, Ed.D.3rd District

Kathy M. HattawaySchool Food Service

David A. Hennigan4th District

Alonzo R. “Lonnie” Luce, Ph.D.Superintendents

Ex Officio MembersSen. Barrow Peacock Chair, Senate Retirement Committee

Rep. J. Kevin PearsonChair, House Retirement Committee

John WhiteState Superintendent of Education

John N. KennedyState Treasurer

Jay Dardenne Commissioner, Division of Administration

Physical address: 8401 United Plaza Blvd, Ste 300 • Baton Rouge, LA 70809-7017Mailing address: P.O. Box 94123 • Baton Rouge, LA 70804-9123Telephone: 225-925-6446 • Fax: 225-925-4779 Toll free (outside Baton Rouge area): 1-877-ASK-TRSL (1-877-275-8775)Email: web.master@trsl.org • Website: www.TRSL.orgFacebook.com/TRSLonline • @TRSLonline

Cover image fourth from left courtesy of Louisiana State Parks.