Legislative Update
The General Assembly is not expected to return until after the November elections. Three bills affecting IMRF have been signed into law.
The only bill remaining to be signed is SB 2554 (bill was signed on July 23, 2010).
IMRF staff met with representatives from the reciprocal systems to discuss the Tier 2 trailer bill. The bill will address technical issues surrounding Tier 2; it will contain no substantive changes.
One of the most significant technical changes deals with the cap on wages that can be reported. The current law does not provide for the member to stop making contributions once the cap is reached. Also the new law does not include a cap for wages that can be used to calculate disability and death benefits.
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GRS Summary of GASB Preliminary Views Document
Chief Financial Officer Richard DeCleene discussed a report from IMRF actuaries GRS on GASB’s project addressing pension accounting for employers.
GASB is reviewing how employers account for and report the cost of postemployment benefits. The current GASB standard (Statement No. 27) focuses on funding for determining the pension liability and expense employers report in their annual financial reports. Dick said GASB is making the employer’s pension liability and expense more sensitive to current economic factors; therefore pension liability and expense may become more volatile.
However, GASB is not dictating any actual funding amount required from employers. Once this new standard is implemented (estimated to be 2013), Trustees will be more challenged when determining employer contributions rates under the provisions of the Illinois Pension Code.
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Position of Internal Audit Manager to be transitioned
The Board’s Audit Committee recommended and the full Board approved transitioning the role of Internal Audit Manager from external consultant to IMRF staff. The transition will take place over several years. IMRF will add another staff internal auditor in 2011.
The role of IMRF’s current internal auditor, Douglas Samz of BIK LLP, in employer audits will be reduced. During the transition period, IMRF will use Mr. Samz’s assistance to groom a member of the internal staff to assume the role of internal audit manager.
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Low bids accepted
The Board accepted the following low bids:
- $7,070.40, from Boss Online for 240,000 custom check envelopes
- $38,849.00, from Centurion, 2010 Trustee elections
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New IMRF employer
The Board approved the application from Steuben Township (Marshall County)
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Next meeting
The next monthly Board meeting will be held at 9 a.m. on Friday, August 27, 2010.
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