The actuarially computed value of the unfunded accrued liabilities is greater than the actuarial present
value of accumulated plan benefits principally because the method for determining the actuarial present value
of accumulated plan benefits does not take into consideration anticipated future wage and salary increases.

For asset and investment management purposes, the State combines the assets of all State administered
retirement and pension systems into a pooled trust fund. Accordingly, the financial statements for the State
administered pension funds are presented on a combined basis in the fiduciary fund type financial statements.
Individual retirement systems' fund balances (amounts expressed in thousands) included in the combined fund
balance of the pension funds as of June 30, 1982 are as follows:

	Fund	Balance (a)
	Employee	Retirement
	Annuity	Accumulation
	Savings (b)	Fund(c)
Employees' Retirement System ..................	.............. $295,703	$ 639,782
Teachers' Retirement System ....................	.............. 577,315	1,158,686
State Police Retirement System ..................	.............. 23,527	80,876
Employees' Pension System ......................	.............. 3,837	170,400
Teachers' Pension System .......................	.............. 4,212	111,023
Judges' Pension System .........................	.............. 4,024
Total .....................................	.............. $908,618	$2,160,767

(a) The consulting actuary annually determines the changes in fund balances resulting from transfers of
employees from the Employees' and Teachers' Retirement Systems to the Employees' and Teachers' Pension
Systems and allocations of investment income. Such changes for the year ended June 30, 1982 will be
determined as a result of an uncompleted actuarial valuation as of July 1, 1982 and, accordingly, the amounts
of such changes will be included in the financial statements for the year ending June 30, 1983.

(b) Contributions made by members together with interest thereon are credited to the Employee Annuity
Savings Fund.

(c) Contributions made by the employer and investment income thereon are credited to the Retirement
Accumulation Fund.

Changes in the pension fund balances (amounts expressed in thousands) for the year ended June 30,1982
were as follows:

	Employee	Retirement
	Annuity	Accumulation
	Savings	Fund
Balance, July 1, 1981 ..................	....................... $869,767	$1,828,777
Increases:
Member contributions ................	....................... 90,789
Employer contributions ..............	....................... 33	298,251
Investment and other income .........	....................... 67	276,119
Decreases:
Benefit payments ....................	....................... (74)	(256,557)
Refunds .............................	....................... (35,085)
Administrative expenses .............		(2,702)
Transfers ...............................	........................ (16,879)	16,879
Balance, June 30, 1982 ................	....................... $908,618	$2,160,767
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