Page 2. November 17, Retirement Board 50 Service Avenue, 2nd Floor Warwick, RI Dear Members of the Board:

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1 Page 2 November 17, 2016 Retirement Board 50 Service Avenue, 2nd Floor Warwick, RI Dear Members of the Board: Subject: GASB 67 and 68 Reporting - Actuarial Information Dear Members of the Board: This report and the information provided herein contain certain information for each of the retirement systems administered by the Employees Retirement System of Rhode Island (ERSRI) in connection with the Governmental Accounting Standards Board (GASB) Statement No. 67, Financial Reporting for Pension Plans. Additionally, this report provides information required by the employers covered by ERS in connection with the GASB Statement No. 68, Accounting and Financial Reporting for Pensions. It is intended that the employers covered by ERSRI will use this information in financial reporting for their fiscal years ending June 30, This is an update to the GASB No. 67 report dated December 14, 2015 to incorporate the GASB No. 68 information for the covered employers. The GASB No. 67 information contained in this report is the same as in the previous report. The calculation of the liability associated with the benefits referenced in this report was performed for the purpose of satisfying the requirements of GASB No. 67 and 68 and is not applicable for purposes of funding the plan. A calculation of the plan s liability for other purposes may produce significantly different results. This report may be provided to parties other than Employees Retirement System of Rhode Island (the Board) only in its entirety and only with the permission of the Board. The total pension liability, net pension liability, and certain sensitivity information shown in this report are based on an actuarial valuation performed as of June 30, The total pension liability was rolled-forward from the valuation date to the plan s fiscal year ending June 30, 2015 using generally accepted actuarial principles. The benefit changes from Article 21 have been incorporated in the rolled-forward liabilities. It is our opinion that the assumptions used for this purpose are internally consistent, reasonable, and comply with the requirements under GASB No. 67 and 68. This report is based upon information, furnished to us by the Retirement System, which includes benefit provisions, membership information, and financial data. We did not audit this data and information, but we did apply a number of tests and concluded that it was reasonable and consistent. GRS is not responsible for the accuracy or completeness of the information provided to us by the Retirement System.

2 Employees Retirement System of Rhode Island November 17, 2016 Page 2 Certain tables included in the Required Supplementary Information should include a 10-year history of information. As provided for in GASB No. 67, this historical information is only presented for the years in which the information was measured in conformity with the requirements of GASB No. 67. This report provides the information for fiscal year 2015 and should be added to the results from last year s report for this exhibit. This report compliments the actuarial valuation report as of June 30, 2014 with further explanations of the new benefit provisions provided in a subsequent impact statements the recently published June 30, 2015 report, provided for plan funding purposes, which are also provided to the Retirement System and should be considered together as a complete report for the Retirement System s fiscal year ending June 30, Please see the actuarial valuation report as of June 30, 2015, dated December 9, 2015, for additional discussion of the actuarial valuation that was used in the roll-forward, including the nature of actuarial calculations and more information related to participant data, economic and demographic assumptions, and benefit provisions. The net pension liability is measured as the total pension liability, less the amount of the plan s fiduciary net position. In actuarial terms, this will be the accrued liability less the market value of assets (not the smoothed actuarial value of assets that is often encountered in actuarial valuations based on the Board s adopted assumptions and methods). A single discount rate of 7.50% was used to measure the total pension liability for the fiscal years ending June 30, 2015 for all Plans except the RIJRFT which was discounted at 3.80%. This single discount rate was based on the expected rate of return on pension plan investments of 7.50% and a municipal bond rate of 3.80% (based on the 20-year Bond Buyer GO Index as of the end of June 2015). Similarly, the municipal bond rate based on the 20-year Bond Buyer GO Index at the end of June 2014 was 4.29%. Based on the stated assumptions and the projection of cash flows as of each fiscal year ending, the pension plan s fiduciary net position and future contributions were sufficient to finance all the future benefit payments of the current plan members for all but the pay-as-you-go Judges Plan. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of the projected benefit payments to determine the total pension liability for all but one system (including all MERS units). The projection of cash flows used to determine the single discount rate assumed that the funding policy specified in the State Code will remain unchanged in future years. To the best of our knowledge, this report is complete and accurate and is in accordance with generally recognized actuarial practices and methods. The undersigned are independent actuaries and consultants. All are Enrolled Actuaries and members of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion herein. All consultants are experienced in performing valuations for large public retirement system.

3 Employees Retirement System of Rhode Island November 17, 2016 Page 3 Respectfully submitted, Joseph P. Newton, FSA, MAAA, EA Senior Consultant Brad Stewart, ASA, MAAA, EA Consultant Paul T. Wood, ASA, MAAA, FCA Consultant

4 Employees Retirement System of Rhode Island Accounting Disclosure Information as of June 30, 2015 Exhibit 1 Schedule of the Employers' Net Pension Liability Plan Fiduciary Net Position as a Percentage of the Total Net Pension Liability as a Percentage of Covered Employee Payroll System Total Pension Liability Plan Fiduciary Net Position Employers' Net Pension Liability (Asset) Pension Liability Covered Employee Payroll (1) (2) (3) (4) (5) (6) (7) State Employee $ 4,417,358,768 $ 2,430,930,476 $ 1,986,428, % $ 669,787, % Teacher $ 6,486,028,286 $ 3,733,025,598 $ 2,753,002, % $ 966,985, % General Employee $ 1,125,296,558 $ 935,510,739 $ 189,785, % $ 228,189, % Fire & Police $ 576,066,967 $ 456,714,171 $ 119,352, % $ 91,293, % State Police $ 120,907,073 $ 114,905,593 $ 6,001, % $ 19,700, % Judges $ 63,085,295 $ 59,509,873 $ 3,575, % $ 9,570, % RIJRFT $ 18,811,808 $ 485,597 $ 18,326, % $ 1,320,875 1,387.4% TSBP $ 200,456,053 $ 293,811,653 $ (93,355,600) 146.6% $ 561,753, % 2

5 Employees Retirement System of Rhode Island Accounting Disclosure Information as of June 30, 2015 Exhibit 2 Schedule of Changes in the Employer s Net Pension Liability Change in the Net Pension Liability State Employee Teacher General Employee Police & Fire State Police Judges RIJRFT TSBP Total pension liability Service Cost 58,003,597 73,780,964 20,454,038 15,802,260 4,198,214 3,024, ,208 2,134,663 Interest 312,489, ,901,918 79,553,219 39,209,010 8,540,146 4,540, ,131 12,500,416 Benefit Changes 102,727, ,006,628 18,678,454 20,243,581 1,169, , Difference between actual and expected experience (28,729,479) (20,696,669) (10,829,976) (2,598,079) (3,522,114) (2,857,295) (642,370) 24,212,282 Assumption Changes ,970 - Benefit Payments (329,318,255) (482,865,966) (66,083,440) (22,950,990) (2,496,511) (1,808,864) - (7,992,381) Net Change in Total Pension Liability 115,172, ,126,875 41,772,295 49,705,782 7,889,315 3,151,534 1,305,939 30,854,980 Total Pension Liability - Beginning 4,302,186,206 6,309,901,411 1,083,524, ,361, ,017,758 59,933,761 17,505, ,601,073 Total Pension Liability - Ending (a) $ 4,417,358,768 $ 6,486,028,286 $ 1,125,296,558 $ 576,066,967 $ 120,907,073 $ 63,085,295 $ 18,811,808 $ 200,456,053 Plan Fiduciary Net Position Contributions - Employer 155,901, ,902,736 28,763,340 15,588,547 3,432,359 2,709, ,388 Contributions - Member 28,477,668 36,470,893 4,368,524 7,223,947 1,731,585 1,120, , ,388 Net Investment Income 57,417,358 88,131,991 21,923,799 10,703,150 2,655,869 1,367,527 9,094 6,951,465 Benefit Payments (329,318,255) (482,865,966) (66,083,440) (22,950,990) (2,496,511) (1,808,864) - (7,992,381) Administrative Expense (2,394,922) (3,676,564) (878,056) (425,478) (99,782) (51,039) (239) (276,010) Transfers to affiliated systems (107,668) 145,179 (48,286) 10, Other 673,125 1,016, ,213 21,917 3, Net Change in Plan Fiduciary Net Position (89,350,773) (142,875,436) (11,691,906) 10,171,867 5,227,214 3,337, ,573 (110,150) Plan Fiduciary Net Position - Beginning 2,520,281,249 3,875,901, ,202, ,542, ,678,379 56,172, , ,921,803 Plan Fiduciary Net Position - Ending (b) 2,430,930,476 3,733,025, ,510, ,714, ,905,593 59,509, , ,811,653 Net Pension Liability - Ending (a) - (b) 1,986,428,292 2,753,002, ,785, ,352,796 6,001,480 3,575,422 18,326,211 (93,355,600) Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 55.0% 57.6% 83.1% 79.3% 95.0% 94.3% 2.6% 146.6% Covered Employee Payroll 669,787, ,985, ,189,238 91,293,039 19,700,678 9,570,014 1,320, ,753,409 Net Pension Liability as a Percentage of Covered Employee Payroll 296.6% 284.7% 83.2% 130.7% 30.5% 37.4% % -16.6% 3

6 Employees Retirement System of Rhode Island Accounting Disclosure Information as of June 30, 2015 Exhibit 3 Schedule of the Employers' Contributions System Actuarially Determined Contribution as a Percent of Covered Payroll Actual Rate Contributed by Participating Employers Total Employer Contributions for the Prior Fiscal Year 2 Contribution Deficiency (Excess) Covered Employee Payroll 3 (1) (2) (3) (4) (5) (6) State Employee 23.33% 23.33% $ 155,901,921 $ - $ 669,787,489 Teacher 22.60% 22.60% $ 217,902,736 $ - $ 966,985,115 General Employee 12.61% 12.61% $ 28,763,340 $ - $ 228,189,238 Fire & Police 17.08% 17.08% $ 15,588,547 $ - $ 91,293,039 State Police 17.24% 17.24% $ 3,432,359 $ - $ 19,700,678 Judges 28.32% 28.32% $ 2,709,397 $ - $ 9,570,014 RIJRFT $ 1,623,061 $ - $ 1,623,061 $ 1,320,875 TSBP $ - $ 603,388 $ (603,388) $ 561,753,409 4

7 Employees Retirement System of Rhode Island Accounting Disclosure Information as of June 30, 2015 Exhibit 4 Sensitivity of the Net Pension Liability to Changes in the Discount Rate System 1.00% Decrease (6.50% ) Current Discount Rate (7.50% ) 1.00% Increase (8.50% ) (1) (2) (3) (4) State Employee $ 2,462,737,913 $ 1,986,428,292 $ 1,596,501,024 Teacher $ 3,452,243,237 $ 2,753,002,688 $ 2,180,575,331 General Employee $ 309,221,655 $ 189,785,819 $ 92,025,528 Fire & Police $ 179,343,731 $ 119,352,796 $ 70,258,445 State Police $ 18,345,353 $ 6,001,480 $ (4,098,269) Judges $ 10,075,163 $ 3,575,422 $ (1,743,119) RIJRFT $ 20,196,834 $ 18,326,211 $ 16,796,025 TSBP $ (72,497,767) $ (93,355,600) $ (110,424,853) * RIJRFT shown with a 3.80% central discount rate, and a 2.80%/4.80% sensitivity 5

8 Employees Retirement System of Rhode Island Accounting Disclosure Information as of June 30, 2015 Exhibit 5 Notes to the Schedule of Contributions Valuation Date: June 30, 2015 Notes Actuarially determined contribution rates are calculated as of June 30, effective for the fiscal year that begins 24 months after the valuation date. Members contribute based on statutorily fixed rates. Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method For funding purposes, the Entry Age Normal actuarial cost method is used. Amortization Method Level Percentage of Payroll, Closed Remaining Amortization Period 20 years except for Teachers Plan (22.3 years) Asset Valuation Method 5 Year smoothed market Inflation 2.75% Salary Increases 3.50% to 14.00% including inflation Investment Rate of Return 7.50% Retirement Age Experience-based table of rates that are specific to the type of eligibility condition. Last updated for the 2011 valuation. Mortality Male Employees, MERS General and MERS P&F: 115% of RP-2000 Combined Healthy for Males with White Collar adjustments, projected with Scale AA from Female Employees, MERS General and MERS P&F: 95% of RP-2000 Combined Healthy for Females with White Collar adjustments, projected with Scale AA from Male Teachers: 97% of rates in a GRS table based on male teacher experience, projected with Scale AA from Female Teachers: 92% of rates in a GRS table based on female teacher experience, projected with Scale AA from Other Information: Notes 6

9 SECTION A GASB NO. 68 INFORMATION FOR PARTICIPATING EMPLOYERS IN THE STATE EMPLOYEES PLAN Section A Financial Statements

10 Section A GASB NO. 68 DISCLOSURE INFORMATION This section of the report shows the GASB No. 68 information for the employers covered by the State Employees Plan. Pages A-1 and A-2 show the aggregate pension expense and Deferred Outflows and (Inflows) of resources for the employers with employees covered by ERSRI. Pages A-3 through A-5 show the disclosure information for the individual employers that need to be incorporated into the employers financial statements. Page A-3 shows the employers their proportionate share of the Net Pension Liability and Pension Expense. Page A-4 shows the employers their deferred inflows and outflows by component. Page A-5 shows the employers the deferred outflows and inflows of resources to be recognized in future years pension expense. PENSION EXPENSE The table below shows the aggregate Pension Expense for the ERSRI employers for the fiscal year ending June 30, Pension Expense for each employer is determined on a proportionate share basis and is shown on page A-3. A. Expense 1. Service Cost $ 58,003, Interest on the Total Pension Liability 312,489, Current-Period Benefit Changes 102,727, Employee Contributions (made negative for addition here) (28,477,668) 5. Projected Earnings on Plan Investments (made negative for addition here) (183,517,289) 6. Pension Plan Administrative Expense 2,394, Other Changes in Plan Fiduciary Net Position (565,457) 8. Recognition of Outflow (Inflow) of Resources due to Liabilities (10,156,700) 9. Recognition of Outflow (Inflow) of Resources due to Assets (8,951,645) 10. Total Pension Expense $ 243,946,459 Recognition of Deferred Outflows and Inflows of Resources According to paragraph 33 of GASB No. 68, differences between expected and actual experience and changes in assumptions are recognized in pension expense using a systematic and rational method over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the pension plan (active employees and inactive employees) determined as of the beginning of the measurement period. The average of the expected remaining service lives for purposes of recognizing the applicable deferred outflows and inflows of resources established in the 2015 fiscal year is years. 1

11 Section A Additionally, differences between projected and actual earnings on pension plan investments should be recognized in pension expense using a systematic and rational method over a closed five-year period. For this purpose, the deferred outflows and inflows of resources are recognized in the pension expense as a level dollar amount over the closed period identified above. The aggregate Deferred Outflows and (Inflows are shown on the following page. The amounts by employer are shown on pages A-4 and A-5. Statement of Outflows and Inflows Arising from the Measurement Period Ending June 30, 2015 for the Employer Fiscal Year Ending June 30, 2016 A. Outflows (Inflows) of Resources due to Liabilities 1. Difference between expected and actual experience of the Total Pension Liability (gains) or losses (28,729,479) 2. Assumption Changes (gains) or losses $ - 3. Recognition period for Liabilities: Average of the expected remaining service lives of all employees {in years} Outflow (Inflow) of Resources to be recognized in the current pension expense for the Difference between expected and actual experience of the Total Pension Liability $ (5,748,540) 5. Outflow (Inflow) of Resources to be recognized in the current pension expense for Assumption Changes $ - 6. Outflow (Inflow) of Resources to be recognized in the current pension expense due to Liabilities $ (5,748,540) 7. Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses for the Difference between expected and actual experience of the Total Pension Liability $ (22,980,939) 8. Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses for Assumption Changes $ - 9. Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses due to Liabilities $ (22,980,939) B. Outflows (Inflows) of Resources due to Assets 1. Net difference between projected and actual earnings on pension plan investments (gains) or losses $ 126,099, Recognition period for Assets {in years} Outflow (Inflow) of Resources to be recognized in the current pension expense due to Assets $ 25,219, Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses due to Assets $ 100,879,945 2

12 Section A Schedule of Employer Allocations and Pension Amounts Sensitivity Analysis At June 30, 2015 Proportionate Proportionate Proportionate Exhibit 1 Share of Share of Share of Proportionate Proportionate Net Pension Liability Net Pension Liability Net Pension Liability Share of Share as of as of June 30, % Decrease 1% Increase Pension Expense Participating Employer (1) June 30, % 6.50% 7.50% as of June 30, 2015 (2) (3) (4) (5) (6) State of Rhode Island University of Rhode Island Rhode Island College Community College of RI Lottery RI Higher Education Assistance Authority Narragansett Bay Commission RI Commerce Corporation RI Airport Corporation % 1,767,095,205 2,190,812,715 1,420,222, ,903, % 113,015, ,114,699 90,831,127 14,111, % 39,783,475 49,322,833 31,974,151 4,900, % 29,073,002 36,044,182 23,366,097 3,538, % 15,073,593 18,687,969 12,114,712 1,896, % 2,953,800 3,662,068 2,373, , % 16,936,520 20,997,591 13,611,954 2,001, % 270, , ,716 26, % 2,226,207 2,760,011 1,789, ,587 3

13 Section A Schedule of Employer Allocations Deferred Outflows Deferred Outflows and Pension Amounts Changes in Changes in At June 30, 2015 Proportion and Proportion and Exhibit 2 Net Difference Differences Net Difference Differences Differences Between Between Employer Differences Between Between Employer Between Projected Contributions and Contributions Total Between Projected Contributions and Total Expected and Actual Proportionate After the Deferred Expected and Actual Proportionate Deferred and Actual Changes of Investment Share of Measurement Outflows and Actual Changes of Investment Share of Inflows Participating Employer (1) Experience Assumptions Earnings Contributions Date of Resources Experience Assumptions Earnings Contributions of Resources (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) State of Rhode Island University of Rhode Island Rhode Island College Community College of RI Lottery RI Higher Education Assistance Authority Narragansett Bay Commission RI Commerce Corporation RI Airport Corporation ,741, ,741,205 20,443,480 13,295,215 91,195, , ,362, ,739, ,569-6,668,020 1,307, ,303 5,832,469-7,990, ,020,387 57,845-2,078, , ,322 2,053,132-2,812, ,476, ,476, , ,739 1,500, ,625 2,181, , , , , , ,913-1,065, , ,008 34,172 22, , , , , , , , , ,365 1,511, , ,757 3,134 2,038 13,980 26,839 45, ,057 20, ,819 25,755 16, , ,393 4

14 Section A Schedule of Employer Allocations Deferred Outflows and (Inflows) to be Recognized in Future Years and Pension Amounts Total Total Total Total Total Total At June 30, 2015 Deferred Deferred Deferred Deferred Deferred Deferred Exhibit 3 Outflow Outflow Outflow Outflow Outflow Outflow and (Inflow) and (Inflow) and (Inflow) and (Inflow) and (Inflow) and (Inflow) Participating Employer (1) Thereafter (2) (3) (3) (4) (5) (6) State of Rhode Island University of Rhode Island Rhode Island College Community College of RI Lottery RI Higher Education Assistance Authority Narragansett Bay Commission RI Commerce Corporation RI Airport Corporation (17,105,665) (17,105,665) (17,105,664) 15,695, (854,872) (854,872) (854,872) 1,242, (368,226) (368,226) (368,226) 370, (311,090) (311,090) (311,090) 228, (100,069) (100,069) (100,069) 179, (101,327) (101,327) (101,327) (46,330) - - (241,556) (241,556) (241,556) 72, (9,319) (9,319) (9,319) (4,277) - - (16,221) (16,221) (16,221) 25,

15 SECTION B GASB NO. 68 INFORMATION FOR PARTICIPATING EMPLOYERS IN THE TEACHERS PLAN Section B Financial Statements

16 Section B GASB NO. 68 DISCLOSURE INFORMATION This section of the report shows the GASB No. 68 information for the employers covered by the Teachers Plan. Pages B-1 and B-2 show the aggregate pension expense and Deferred Outflows and (Inflows) of resources for the employers with employees covered by ERSRI. Pages B-3 through B-10 show the disclosure information for the individual employers that need to be incorporated into the employers financial statements. Page B-3 shows the employers their proportionate share of the Net Pension Liability and Pension Expense. Page B-6 shows the employers their deferred inflows and outflows by component. Page B-8 shows the employers the deferred outflows and inflows of resources to be recognized in future years pension expense. PENSION EXPENSE The table below shows the aggregate Pension Expense for the ERSRI employers for the fiscal year ending June 30, Pension Expense for each employer is determined on a proportionate share basis and is shown on page B-3. A. Expense 1. Service Cost $ 73,780, Interest on the Total Pension Liability 457,901, Current-Period Benefit Changes 148,006, Employee Contributions (made negative for addition here) (36,470,893) 5. Projected Earnings on Plan Investments (made negative for addition here) (282,029,799) 6. Pension Plan Administrative Expense 3,676, Other Changes in Plan Fiduciary Net Position (1,161,474) 8. Recognition of Outflow (Inflow) of Resources due to Liabilities (14,977,704) 9. Recognition of Outflow (Inflow) of Resources due to Assets (13,618,807) 10. Total Pension Expense $ 335,107,397 Recognition of Deferred Outflows and Inflows of Resources According to paragraph 33 of GASB No. 68, differences between expected and actual experience and changes in assumptions are recognized in pension expense using a systematic and rational method over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the pension plan (active employees and inactive employees) determined as of the beginning of the measurement period. The average of the expected remaining service lives for purposes of recognizing the applicable deferred outflows and inflows of resources established in the 2015 fiscal year is years. 1

17 Section B Additionally, differences between projected and actual earnings on pension plan investments should be recognized in pension expense using a systematic and rational method over a closed five-year period. For this purpose, the deferred outflows and inflows of resources are recognized in the pension expense as a level dollar amount over the closed period identified above. The aggregate Deferred Outflows and (Inflows are shown on the following page. The amounts by employer are shown on pages B-6 and B-8. Statement of Outflows and Inflows Arising from the Measurement Period Ending June 30, 2015 for the Employer Fiscal Year Ending June 30, 2016 A. Outflows (Inflows) of Resources due to Liabilities 1. Difference between expected and actual experience of the Total Pension Liability (gains) or losses (20,696,669) 2. Assumption Changes (gains) or losses $ - 3. Recognition period for Liabilities: Average of the expected remaining service lives of all employees {in years} Outflow (Inflow) of Resources to be recognized in the current pension expense for the Difference between expected and actual experience of the Total Pension Liability $ (2,770,861) 5. Outflow (Inflow) of Resources to be recognized in the current pension expense for Assumption Changes $ - 6. Outflow (Inflow) of Resources to be recognized in the current pension expense due to Liabilities $ (2,770,861) 7. Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses for the Difference between expected and actual experience of the Total Pension Liability $ (17,925,808) 8. Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses for Assumption Changes $ - 9. Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses due to Liabilities $ (17,925,808) B. Outflows (Inflows) of Resources due to Assets 1. Net difference between projected and actual earnings on pension plan investments (gains) or losses $ 193,897, Recognition period for Assets {in years} Outflow (Inflow) of Resources to be recognized in the current pension expense due to Assets $ 38,779, Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses due to Assets $ 155,118,246 2

18 Section B Schedule of Employer Allocations and Pension Amounts Sensitivity Analysis At June 30, 2015 Proportionate Proportionate Proportionate Exhibit 1 Share of Share of Share of Proportionate Proportionate Net Pension Liability Net Pension Liability Net Pension Liability Share of Share as of as of June 30, % Decrease 1% Increase Pension Expense Participating Employer State of Rhode Island Barrington Bristol/Warren Burrillville Central Falls Chariho Coventry Cranston Cumberland East Greenwich East Providence (1) Exeter-West Greenwich Foster Foster-Glocester Glocester Jamestown Johnston Lincoln Little Compton Middletown June 30, % 6.50% 8.50% as of June 30, 2015 (2) (3) (4) (5) (6) % 1,117,395,495 1,401,204, ,057, ,682, % 39,947,305 50,093,599 31,641,127 5,118, % 38,327,085 48,061,857 30,357,797 4,721, % 22,767,283 28,549,990 18,033,319 2,412, % 31,152,413 39,064,876 24,674,943 4,000, % 46,097,184 57,805,498 36,512,272 6,135, % 60,158,353 75,438,091 47,649,725 7,208, % 124,172, ,711,920 98,353,895 15,085, % 46,697,799 58,558,664 36,988,002 5,773, % 26,682,681 33,459,868 21,134,595 3,199, % 54,392,896 68,208,254 43,083,070 6,799, % 23,035,108 28,885,841 18,245,456 2,320, % 3,071,362 3,851,464 2,432, , % 14,451,813 18,122,458 11,446,871 1,732, % 6,755,465 8,471,299 5,350, , % 7,055,006 8,846,921 5,588, , % 37,498,898 47,023,316 29,701,813 4,795, % 42,119,410 52,817,401 33,361,590 4,732, % 3,425,297 4,295,295 2,713, , % 28,281,240 35,464,448 22,400,768 3,212,375 3

19 Section B Schedule of Employer Allocations and Pension Amounts Sensitivity Analysis At June 30, 2015 Proportionate Proportionate Proportionate Exhibit 1 Share of Share of Share of Proportionate Proportionate Net Pension Liability Net Pension Liability Net Pension Liability Share of Share as of as of June 30, % Decrease 1% Increase Pension Expense Narragansett New Shoreham Newport North Kingstown North Providence North Smithfield Participating Employer (1) Northern RI Collaborative Pawtucket Portsmouth Providence Scituate Smithfield South Kingstown Tiverton Urban Collaborative Warwick West Bay Collaborative West Warwick Westerly Woonsocket June 30, % 6.50% 8.50% as of June 30, 2015 (2) (3) (4) (5) (6) % 20,752,519 26,023,491 16,437,481 2,654, % 3,155,975 3,957,567 2,499, , % 27,960,185 35,061,848 22,146,470 3,346, % 46,548,312 58,371,209 36,869,598 5,553, % 39,842,958 49,962,749 31,558,477 5,675, % 18,854,306 23,643,148 14,933,961 2,230, % 4,616,531 5,789,092 3,656, , % 91,758, ,064,093 72,679,097 11,194, % 29,110,693 36,504,576 23,057,754 3,104, % 260,697, ,912, ,490,857 31,575, % 19,767,003 24,787,663 15,656,882 2,294, % 29,391,343 36,856,508 23,280,049 4,031, % 44,674,781 56,021,817 35,385,627 5,375, % 21,734,853 27,255,331 17,215,561 3,047, % 1,808,371 2,267,682 1,432, , % 133,250, ,094, ,543,686 15,624, % 1,749,712 2,194,124 1,385, , % 44,563,281 55,881,996 35,297,311 6,015, % 42,148,536 52,853,925 33,384,660 4,890, % 58,882,764 73,838,512 46,639,367 7,035,185 4

20 Section B Schedule of Employer Allocations and Pension Amounts Sensitivity Analysis At June 30, 2015 Proportionate Proportionate Proportionate Exhibit 1 Share of Share of Share of Proportionate Proportionate Net Pension Liability Net Pension Liability Net Pension Liability Share of Share as of as of June 30, % Decrease 1% Increase Pension Expense Participating Employer (1) Highlander Charter School Paul Cuffee Charter School Kingston Hill Charter School International Charter School Compass School Charter School Blackstone Academy Charter School Beacon Charter School Learning Community Charter School Segue Institute Charter School Greene Charter School Trinity Academy Charter School RI Nurses Charter School Village Green Charter School Sheila Nowell Charter School South Side Charter School June 30, % 6.50% 8.50% as of June 30, 2015 (2) (3) (4) (5) (6) % 3,768,327 4,725,451 2,984, , % 8,602,645 10,787,648 6,813, , % 1,556,583 1,951,942 1,232, , % 3,367,239 4,222,491 2,667, , % 1,569,667 1,968,350 1,243, , % 1,301,962 1,632,650 1,031, , % 2,185,796 2,740,971 1,731, , % 5,538,188 6,944,843 4,386, , % 2,089,479 2,620,190 1,655, , % 1,530,138 1,918,780 1,211, , % 1,825,257 2,288,858 1,445, , % 2,167,499 2,718,026 1,716, , % 1,308,022 1,640,249 1,036, , % 1,193,699 1,496, , , % 245, , ,352 62,441 5

21 Section B Schedule of Employer Allocations Deferred Outflows Deferred Outflows and Pension Amounts Changes in Changes in At June 30, 2015 Proportion and Proportion and Exhibit 2 Net Difference Differences Net Difference Differences Differences Between Between Employer Differences Between Between Employer Between Projected Contributions and Contributions Total Between Projected Contributions and Total Expected and Actual Proportionate After the Deferred Expected and Actual Proportionate Deferred and Actual Changes of Investment Share of Measurement Outflows and Actual Changes of Investment Share of Inflows Participating Employer (1) State of Rhode Island Barrington Bristol/Warren Burrillville Central Falls Chariho Coventry Cranston Cumberland East Greenwich East Providence Exeter-West Greenwich Foster Foster-Glocester Glocester Jamestown Johnston Lincoln Little Compton Middletown Narragansett New Shoreham Newport North Kingstown North Providence North Smithfield Northern RI Collaborative Pawtucket Portsmouth Providence Scituate Smithfield South Kingstown Tiverton Urban Collaborative Experience Assumptions Earnings Contributions Date of Resources Experience Assumptions Earnings Contributions of Resources (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) ,959, ,959,772 7,275,769 30,039,400 63,802,734 2,147, ,265, ,250,835 1,656,855-3,907, ,112 1,073,920 2,280,972-3,615, ,159, ,896-2,524, ,562 1,030,363 2,188,458-3,468, ,282, ,282, , ,062 1,300,001 2,323,487 4,383, ,755,286 1,348,023-3,103, , ,483 1,778,788-2,819, ,597,351 3,393,779-5,991, ,156 1,239,249 2,632,127-4,171, ,389, ,389, ,713 1,617,261 3,435, ,808 6,185, ,996, ,996, ,536 3,338,193 7,090, ,459 11,424, ,631, ,537-3,207, ,066 1,255,396 2,666,421-4,225, ,503, ,503, , ,321 1,523, ,184 2,724, ,064,774 1,153,693-4,218, ,172 1,462,266 3,105,808-4,922, ,297, ,297, , ,262 1,315,293 3,124,648 5,209, , ,056 19,999 82, , , , , ,289 94, , , ,683 1,479, , , ,367 43, , , , , ,515 45, , , ,354 1,172, ,112,880 1,493,595-3,606, ,169 1,008,098 2,141,169-3,393, ,373, ,373, ,255 1,132,313 2,404,998 2,552,791 6,364, , ,999 22,303 92, ,583 1,529,512 1,839, ,593, ,593, , ,296 1,614,845 1,488,864 4,048, ,169, ,718-2,000, , ,898 1,184,959-1,877, , ,824 20,550 84, , , , ,575, ,575, , ,665 1,596, ,310 2,898, ,622, ,622, ,093 1,251,377 2,657, ,775 4,940, ,244,956 5,343,920-7,588, ,432 1,071,114 2,275,013-3,605, ,062, ,062, , ,868 1,076, ,463 2,121, , , ,623 30, , , , ,170, ,587-5,335, ,471 2,466,774 5,239,351-8,303, ,640, ,640, , ,595 1,662,206 2,842,764 5,477, ,689, ,689,013 1,697,495 7,008,429 14,885,683 1,023,233 24,614, ,113, ,113, , ,404 1,128, ,895 2,510, ,656,059 2,933,656-4,589, , ,139 1,678,231-2,659, ,517, ,517, ,894 1,201,010 2,550, ,505 4,450, ,224,653 2,599,306-3,823, , ,307 1,241,049-1,966, , , ,764 11,775 48, , ,647 6

22 Section B Schedule of Employer Allocations Deferred Outflows Deferred Outflows and Pension Amounts Changes in Changes in At June 30, 2015 Proportion and Proportion and Exhibit 2 Net Difference Differences Net Difference Differences Differences Between Between Employer Differences Between Between Employer Between Projected Contributions and Contributions Total Between Projected Contributions and Total Expected and Actual Proportionate After the Deferred Expected and Actual Proportionate Deferred and Actual Changes of Investment Share of Measurement Outflows and Actual Changes of Investment Share of Inflows Warwick Participating Employer (1) West Bay Collaborative West Warwick Westerly Woonsocket Highlander Charter School Paul Cuffee Charter School Kingston Hill Charter School International Charter School Compass School Charter School Blackstone Academy Charter School Beacon Charter School Learning Community Charter School Segue Institute Charter School Greene Charter School Trinity Academy Charter School RI Nurses Charter School Village Green Charter School Sheila Nowell Charter School South Side Charter School Experience Assumptions Earnings Contributions Date of Resources Experience Assumptions Earnings Contributions of Resources (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) - - 7,507, ,507, ,641 3,582,219 7,608,520 3,852,840 15,911, , , ,946 11,393 47,038 99, , ,510,923 3,823,795-6,334, ,168 1,198,013 2,544,542-4,032, ,374, ,374, ,445 1,133,096 2,406,661 1,552,964 5,367, ,317, ,317, ,407 1,582,969 3,362, ,773 6,184, , , ,818 24, , , , , ,717 56, , , ,745 1,372, ,706 92, ,130 10,135 41,846 88, , , ,727 21,925 90, ,268 64, , ,443 47, ,965 10,221 42,198 89, , , , ,966 8,478 35,001 74, , , , ,076 14,233 58, , , , ,050 36, , ,228 57, , ,732 24, ,612 13,605 56, , , , ,216 9,963 41,135 87,370 48, , , , ,123 11,885 49, , , , , ,134 14,113 58, , , , , ,705 8,517 35,164 74, , ,259 78, ,040 7,773 32,091 68, , , , ,557 1,598 6,596 14,011-22,205 7

23 Section B Schedule of Employer Allocations Deferred Outflows and (Inflows) to be Recognized in Future Years and Pension Amounts Total Total Total Total Total Total At June 30, 2015 Deferred Deferred Deferred Deferred Deferred Deferred Exhibit 3 Outflow Outflow Outflow Outflow Outflow Outflow and (Inflow) and (Inflow) and (Inflow) and (Inflow) and (Inflow) and (Inflow) State of Rhode Island Barrington Bristol/Warren Burrillville Central Falls Chariho Coventry Cranston Cumberland East Greenwich East Providence Exeter-West Greenwich Foster Foster-Glocester Glocester Jamestown Johnston Lincoln Little Compton Middletown Narragansett New Shoreham Newport North Kingstown North Providence Participating Employer (1) Thereafter (2) (3) (4) (5) (6) (7) (11,938,809) (11,938,809) (11,938,809) 9,328,774 (6,411,173) (7,407,050) (158,841) (158,841) (158,841) 601,483 38, ,952 (341,715) (341,715) (341,715) 387,771 (152,115) (154,454) (595,643) (595,643) (595,643) (162,309) (483,015) (668,718) (115,223) (115,223) (115,223) 477,706 38, ,272 45,760 45,760 45, , , ,386 (739,552) (739,552) (739,552) 405,452 (441,955) (541,007) (1,318,809) (1,318,809) (1,318,809) 1,044,596 (704,539) (811,493) (395,951) (395,951) (395,951) 492,856 (164,942) (158,214) (325,109) (325,109) (325,109) 182,747 (193,113) (235,682) (386,669) (386,669) (386,669) 648,600 (117,593) (74,779) (722,264) (722,264) (722,264) (283,833) (608,311) (852,341) (84,239) (84,239) (84,239) (25,782) (69,046) (95,923) (176,655) (176,655) (176,655) 98,409 (105,163) (128,481) (1,738) (1,738) (1,738) 126,840 31,681 58,729 (155,880) (155,880) (155,880) (21,601) (120,980) (165,056) (158,645) (158,645) (158,645) 555,078 26, ,038 (832,106) (832,106) (832,106) (30,440) (623,746) (840,630) (272,002) (272,002) (272,002) (206,808) (255,057) (368,612) (523,907) (523,907) (523,907) 14,374 (384,003) (513,295) (87,157) (87,157) (87,157) 307,829 15,503 60,176 (56,434) (56,434) (56,434) 3,634 (40,822) (54,299) (347,364) (347,364) (347,364) 184,807 (209,048) (256,794) (596,010) (596,010) (596,010) 289,951 (365,741) (453,541) 412, , ,166 1,170, , ,052 8

24 Section B Schedule of Employer Allocations Deferred Outflows and (Inflows) to be Recognized in Future Years and Pension Amounts Total Total Total Total Total Total At June 30, 2015 Deferred Deferred Deferred Deferred Deferred Deferred Exhibit 3 Outflow Outflow Outflow Outflow Outflow Outflow and (Inflow) and (Inflow) and (Inflow) and (Inflow) and (Inflow) and (Inflow) North Smithfield Participating Employer (1) Northern RI Collaborative Pawtucket Portsmouth Providence Scituate Smithfield South Kingstown Tiverton Urban Collaborative Warwick West Bay Collaborative West Warwick Westerly Woonsocket Highlander Charter School Paul Cuffee Charter School Kingston Hill Charter School International Charter School Compass School Charter School Blackstone Academy Charter School Beacon Charter School Learning Community Charter School Segue Institute Charter School Greene Charter School Thereafter (2) (3) (4) (5) (6) (7) (260,067) (260,067) (260,067) 98,790 (166,797) (211,114) (10,778) (10,778) (10,778) 77,090 12,060 26,037 (927,534) (927,534) (927,534) 818,917 (473,615) (530,581) (741,801) (741,801) (741,801) (187,732) (597,794) (825,941) (2,866,128) (2,866,128) (2,866,128) 2,095,766 (1,576,487) (1,846,722) (316,914) (316,914) (316,914) 59,315 (219,128) (286,366) 148, , , , , ,327 (527,044) (527,044) (527,044) 323,258 (306,043) (369,194) 176, , , , , ,791 4,382 4,382 4,382 38,801 13,328 22,842 (1,979,669) (1,979,669) (1,979,669) 556,504 (1,320,495) (1,700,226) 32,890 32,890 32,890 66,193 41,546 64, , , , , , ,550 (677,861) (677,861) (677,861) 124,359 (469,357) (613,721) (743,918) (743,918) (743,918) 376,807 (452,632) (558,991) 7,150 7,150 7,150 78,873 25,791 44,692 (181,137) (181,137) (181,137) (17,401) (138,581) (188,125) (1,883) (1,883) (1,883) 27,744 5,817 11,357 (44,990) (44,990) (44,990) 19,099 (28,332) (35,566) (8,959) (8,959) (8,959) 20,917 (1,194) 1,073 3,418 3,418 3,418 28,198 9,859 16,835 48,850 48,850 48,850 90,453 59,663 91,607 (66,393) (66,393) (66,393) 39,016 (38,996) (47,324) (17,858) (17,858) (17,858) 21,911 (7,522) (7,288) (23,457) (23,457) (23,457) 5,666 (15,888) (20,585) 9

25 Section B Schedule of Employer Allocations Deferred Outflows and (Inflows) to be Recognized in Future Years and Pension Amounts Total Total Total Total Total Total At June 30, 2015 Deferred Deferred Deferred Deferred Deferred Deferred Exhibit 3 Outflow Outflow Outflow Outflow Outflow Outflow and (Inflow) and (Inflow) and (Inflow) and (Inflow) and (Inflow) and (Inflow) Participating Employer (1) Trinity Academy Charter School RI Nurses Charter School Village Green Charter School Sheila Nowell Charter School South Side Charter School Thereafter (2) (3) (4) (5) (6) (7) 29,928 29,928 29,928 64,669 38,958 60,537 36,378 36,378 36,378 77,633 47,101 73,120 27,530 27,530 27,530 52,426 34,001 52,320 (222) (222) (222) 22,497 5,683 10,502 30,025 30,025 30,025 34,695 31,239 46,343 10

26 SECTION C GASB NO. 68 INFORMATION FOR PARTICIPATING EMPLOYERS IN THE TEACHERS SURVIVOR BENEFFITS PLAN Section C Financial Statements

27 Section C GASB NO. 68 DISCLOSURE INFORMATION This section of the report shows the GASB No. 68 information for the employers covered by the Teachers Survivor Benefits Plan. Pages C-1 and C-2 show the aggregate pension expense and Deferred Outflows and (Inflows) of resources for the employers with employees covered by the TSB. Pages C-3 through C-5 show the disclosure information for the individual employers that need to be incorporated into the employers financial statements. Page C-3 shows the employers their proportionate share of the Net Pension Liability and Pension Expense. Page C-4 shows the employers their deferred inflows and outflows by component. Page C-5 shows the employers the deferred outflows and inflows of resources to be recognized in future years pension expense. PENSION EXPENSE The table below shows the aggregate Pension Expense for the ERSRI employers for the fiscal year ending June 30, Pension Expense for each employer is determined on a proportionate share basis and is shown on page C-3. A. Expense 1. Service Cost $ 2,134, Interest on the Total Pension Liability 12,500, Current-Period Benefit Changes - 4. Employee Contributions (made negative for addition here) (603,388) 5. Projected Earnings on Plan Investments (made negative for addition here) (21,779,325) 6. Pension Plan Administrative Expense 276, Other Changes in Plan Fiduciary Net Position - 8. Recognition of Outflow (Inflow) of Resources due to Liabilities 2,628, Recognition of Outflow (Inflow) of Resources due to Assets (1,101,939) 10. Total Pension Expense $ (5,945,022) Recognition of Deferred Outflows and Inflows of Resources According to paragraph 33 of GASB No. 68, differences between expected and actual experience and changes in assumptions are recognized in pension expense using a systematic and rational method over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the pension plan (active employees and inactive employees) determined as of the beginning of the measurement period. The average of the expected remaining service lives for purposes of recognizing the applicable deferred outflows and inflows of resources established in the 2015 fiscal year is years. 1

28 Section C Additionally, differences between projected and actual earnings on pension plan investments should be recognized in pension expense using a systematic and rational method over a closed five-year period. For this purpose, the deferred outflows and inflows of resources are recognized in the pension expense as a level dollar amount over the closed period identified above. The aggregate Deferred Outflows and (Inflows are shown on the following page. The amounts by employer are shown on pages C-3 and C-5. Statement of Outflows and Inflows Arising from the Measurement Period Ending June 30, 2015 for the Employer Fiscal Year Ending June 30, 2016 A. Outflows (Inflows) of Resources due to Liabilities 1. Difference between expected and actual experience of the Total Pension Liability (gains) or losses 24,212, Assumption Changes (gains) or losses $ - 3. Recognition period for Liabilities: Average of the expected remaining service lives of all employees {in years} Outflow (Inflow) of Resources to be recognized in the current pension expense for the Difference between expected and actual experience of the Total Pension Liability $ 2,628, Outflow (Inflow) of Resources to be recognized in the current pension expense for Assumption Changes $ - 6. Outflow (Inflow) of Resources to be recognized in the current pension expense due to Liabilities $ 2,628, Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses for the Difference between expected and actual experience of the Total Pension Liability $ 21,583, Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses for Assumption Changes $ - 9. Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses due to Liabilities $ 21,583,741 B. Outflows (Inflows) of Resources due to Assets 1. Net difference between projected and actual earnings on pension plan investments (gains) or losses $ 14,827, Recognition period for Assets {in years} Outflow (Inflow) of Resources to be recognized in the current pension expense due to Assets $ 2,965, Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses due to Assets $ 11,862,288 2

29 Section C Schedule of Employer Allocations and Pension Amounts Sensitivity Analysis At June 30, 2015 Proportionate Proportionate Proportionate Exhibit 1 Share of Share of Share of Proportionate Proportionate Net Pension Liability Net Pension Liability Net Pension Liability Share of Share as of as of June 30, % Decrease 1% Increase Pension Expense Participating Employer (1) June 30, % 6.50% 8.50% as of June 30, 2015 (2) (3) (4) (5) (6) Barrington Bristol-Warren Burrillville Central Falls Collaborative Coventry Cranston Cumberland East Greenwich East Providence Foster Foster-Glocester Glocester Johnston Lincoln Little Compton Middletown Newport North Smithfield Northern RI Collaborative Portsmouth Scituate Smithfield Tiverton Urban Collaborative Westerly % (4,396,495) (3,414,217) (5,200,357) (285,218) % (4,218,325) (3,275,852) (4,989,609) (268,811) % (3,098,507) (2,406,228) (3,665,042) (199,957) % (3,937,717) (3,057,939) (4,657,694) (229,540) % (6,794,407) (5,276,377) (8,036,705) (416,139) % (14,863,013) (11,542,267) (17,580,584) (919,760) % (6,344,294) (4,926,830) (7,504,292) (435,060) % (3,401,345) (2,641,404) (4,023,251) (214,049) % (7,362,805) (5,717,781) (8,709,029) (524,615) % (415,885) (322,966) (491,926) (34,374) % (1,693,246) (1,314,935) (2,002,841) (102,454) % (816,917) (634,398) (966,283) (54,846) % (4,604,566) (3,575,798) (5,446,470) (326,460) % (4,579,071) (3,555,999) (5,416,314) (283,142) % (259,292) (201,360) (306,701) 28, % (3,433,424) (2,666,317) (4,061,196) (220,888) % (3,292,265) (2,556,695) (3,894,226) (234,642) % (2,530,222) (1,964,911) (2,992,851) (162,534) % (490,150) (380,639) (579,770) (31,797) % (3,529,932) (2,741,262) (4,175,349) (209,214) % (2,070,058) (1,607,558) (2,448,550) (129,429) % (3,428,707) (2,662,653) (4,055,616) (197,733) % (2,781,941) (2,160,390) (3,290,594) (176,453) % (222,795) (173,018) (263,532) (14,454) % (4,790,221) (3,719,973) (5,666,071) (302,411) 3