The Florida Retirement System continues to be fully funded, primarily as a result of continued high investment returns and system member salary increases being lower than expected. The system's 1999 valuation determined that the system's assets exceed its liabilities, with a surplus of $9.2 billion as of July 1,1999. The elimination of the system's unfunded liability, which had been as high of $15.9 billion as recently as June 1991, is a result of several factors, such as unprecedented returns on the investment of system assets and changes in several key economic assumptions used in the valuation consistent with recommendations made in prior reviews by our office and our consulting actuary, Buck Consultants, Inc. The 1999 valuation recommended reasonable contribution rates and was made in accordance with relevant laws, rules, and actuarial standards.