|Financial Audit Division Report 07-11||Released May 24, 2007|
On December 20, 2006, we issued an unqualified opinion on the financial statements of the Teachers Retirement Association of Minnesota (TRA) as of and for the year ended June 30, 2006.
This is a related report on internal controls over financial reporting and compliance with certain legal requirements. It contains one finding concerning supplementary information in TRA’s 2006 financial report that was not presented in compliance with generally accepted accounting principles.
The Teachers Retirement Association of Minnesota (TRA) serves as the administrator of a multi-employer, cost sharing defined benefit fund. TRA administers a basic plan (without social security coverage) and a coordinated plan (with social security coverage) in accordance with Minnesota Statutes 2006, chapters 354 and 356. Its members include teachers employed in Minnesota’s public elementary and secondary schools, charter schools, the Minnesota State Colleges and Universities (MnSCU) system, and all other state educational institutions, with the exception of teachers employed by the cities of Saint Paul and Duluth and the University of Minnesota. Effective June 30, 2006, the Minnesota Legislature merged the Minneapolis Teachers Retirement Fund Association into TRA. TRA provided retirement coverage for 79,164 active members, 44,683 retired members, and 11,773 deferred members (members who no longer contribute but are eligible for future annual benefits).
At June 30, 2006, TRA’s total net assets held in trust for pension benefits were approximately $17.8 billion. For the year ended June 30, 2006, TRA received contributions of about $356 million and paid benefits and refunds of about $1.2 billion.