7.24 Reserve Statement

The ”Employer Retirement Reserve Statement of Account” (Exhibit 7A) reflects the accumulation of assets from the beginning of a unit of government’s participation to December 31 of the reserve statement year. These assets include beginning balance, ending balance, employer retirement contributions, interest credited or charged, adjustments, residual investment income credited or loss charged, and the employer’s share of the cost for a member’s or survivor’s pension. The Statement reflects calendar year transactions; it does not reflect a cumulative listing of all employees who retired from the unit of government. The Statement is provided to Authorized Agents during March or April of each year and may include the following:

The retirement reserve is used to fund retirement benefits for a unit of government’s active IMRF members when they retire. It is also one component of an employer’s actuarial assets which, along with the accrued actuarial liability, helps to determine the employer’s over- or underfunding balance.

For more details, see General Memo 648 Employer Retirement Reserve Statements.

 

The retirement reserve is used to pay retirement benefits for a unit of government’s IMRF members. It is also one factor used to calculate the IMRF employer contribution rate.