Actuaries Brian Murphy, Mark Buis and Francois Pieterse from Gabriel, Roeder, Smith & Co. presented IMRF's Annual Actuarial Valuation as of December 31, 2011, and IMRF's Annual Gain/Loss Analysis.
The purpose of the Annual Valuation is to report employer contribution rates for 2013, measure IMRF's actuarial position and funding progress (ratio of assets to liabilities), and explain changes in IMRF's funding position.
The purpose of the Gain/Loss Analysis is to identify any changes in IMRF's unfunded liabilities because of deviations from assumptions for each area of risk, e.g., membership, investment return, and inflation.
The GRS team said that by 2018, half of the IMRF membership will be new members. While in the past every employer had the same Normal Cost rate, with the addition of Tier 2, each employer now has an individual Normal Cost rate, since this rate is directly affected by how many Tier 2 members each employer has.
The 2011 Valuation results were affected by:
Later this year, IMRF employers will elect one executive trustee for a five-year term of office and one employee trustee for a two-year term of office.
The Board approved the election schedule, general memo, fact sheet, nominating petition form, biographical information form, and list of election judges and clerks.
As IMRF has done in the past, employers will receive a general memorandum via the Employer Digest email newsletter about the elections at the end of June. The memo will include a link to the documents.
General Counsel Kathy O’Brien said that House Bill 4622 passed the second chamber on May 15, 2012. The bill contains the Board’s 2012 Legislative Agenda and makes two changes.
The first change removes an incorrect word in Section 7-220 of the Illinois Pension Code. The second change removes obsolete Social Security procedures, including clarifying that taxes levied for IMRF purposes can only be used for IMRF employer contributions.
The bill will be sent to the governor to be signed.
The group also briefly discussed the “pension reform” bill that was expected to be introduced the week following the Board meeting. IMRF is not expected to be included in this legislation.
The Board approved a recommendation to revise the appeal procedures for both Disability and non-Disability claims. The revised procedures are available at www.imrf.org.
The Board briefly discussed the self-evaluation it will perform at the June 2012 Board meeting.
The next monthly Board meeting will be held Friday, June 22, in Oak Brook, IL.
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IMRF Online provides a brief summary of IMRF benefits and the adminstration of those benefits. IMRF members' and employers' rights and obligations are governed by Article 7 of the Illinois Pension Code. Statements in these publications are general, and the Illinois state law governing IMRF is complex and specific. If a conflict arises between information in these publications and the law, all decisions are based on the law.
Copyright © Illinois Municipal Retirement FundPage Last Updated by JK on 06.07.12