This report presents the results of the actuarial valuation of the State Retirement System. The valuation was performed as of January 1, 2012 pursuant to Chapter 32 of the General Laws of the Commonwealth of Massachusetts and based on the plan provisions at that time. The actuarial assumptions used to calculate the accrued liability and the normal cost reflect the Experience Study Analysis report we issued in 2007 except we adjusted the mortality assumption to reflect future mortality improvement. This valuation was based on member data as of December 31, 2011, which was supplied by the State Retirement Board. Asset information as of December 31, 2011 was provided by the Pension Reserves Investment Management Board. Both the membership data and financial information were reviewed for reasonableness but not audited by us.