Financial Results for FY 2023

IMRF Announces Preliminary Financial Results For FY 2023

IMRF saw an increase in its investment portfolio in FY2023.

Financial Highlights for 2023 

• IMRF’s investment portfolio earned a net rate of return of about 13.2%.
• IMRF’s investment assets as of December 31, 2023 were about $52.2 billion.
• IMRF had an actuarial funded status of about 97.7%.

These figures are estimates and unaudited. IMRF will share final figures in its Fiscal Year 2023 Annual Comprehensive Financial Report.

IMRF Is Nearly 100% Funded

Funded status is a key barometer of a pension plan’s fiscal health. The typical U.S. pension plan is about 78.2% funded, according to Milliman’s Public Pension Funding Index. IMRF’s 97.7 % funded status means it has on hand today nearly all the money needed to pay the entirety of its pension obligations to all current retirees and active workers.

“Our funded status gives us complete confidence in our ability to deliver on our mission of providing retirement, disability, and death benefits to our nearly half a million members,” said Brian Collins, IMRF Executive Director.

Impact on Municipal Government Contributions

We do not know yet exactly how it will impact employer contribution rates. This information will be available in April when preliminary rate notices for 2025 are distributed.

Market Outlook for 2024

Looking ahead to 2024, we expect the market to remain volatile and unpredictable. On the one hand, expected Fed rate cuts should lead to gains in the the stock market. On the other hand, the ongoing conflict in the Middle East and Ukraine is a threat to economic growth.

The good news is that IMRF doesn’t invest the way an individual does, with a target date in mind. We are long-term investors, with a long-term investment time horizon, which means we can weather market downturns.

“By sticking to our proven strategies, the fund will maintain its superior funded status,” Collins said.

*Please note the numbers in the video are preliminary.