IMRF customer service ranked in the top 10% in a recent benchmarking study of public pension systems nationwide.
CEM Benchmarking, Inc., conducts an annual Defined Benefit Administration Benchmarking Analysis of customer service and operating costs for public pension systems. This year’s study compared IMRF to 39 other public pension systems in the U.S. and Canada. According to the study:
Jan Hartford, a partner at CEM, said the results show that IMRF ranks among a select group of global leaders within the public pension administration community. “This is excellent cost performance given your higher volumes in key member transactions, higher cost environment, and consistently top quartile service score," she said.
Chief Financial Officer Richard DeCleene updated the Board on the anticipated impact of new accounting and reporting standards for public pensions provided through state and local governments recently approved by the Governmental Accounting Standards Board (GASB).
GASB Statement No. 67 will increase footnote disclosures and significantly change required supplemental information for agent multiple-employer pension plans like IMRF.
GASB Statement No. 68 will make significant changes in accounting and financial reporting for pension liabilities and pension expense for IMRF employers. The new requirements will also expand the required supplemental information and footnote disclosures for employers.
From a reporting standpoint, the new rules will increase the total pension liability for IMRF employers who have underfunded plans, increase the volatility of employers’ unfunded actuarial liability, and make the reported year-end pension expense more unpredictable. However, from a ratemaking standpoint, the process followed by IMRF actuaries to calculate employer rates will not change.
In order to provide IMRF employers the information that they will need to meet the requirements of GASB 68, IMRF staff will work with our actuaries and employers to develop information as of December 31, 2013, with annual updates thereafter. This should allow employers to adopt GASB 68 beginning with fiscal years ending December 31, 2014, as required by the new GASB rules.
The Board voted to send a letter to Moody’s Investors Service requesting that the agency delay implementation of proposed changes to the way it analyzes pension liabilities when rating state and local government debt.
The IMRF Board believes it is in the best interest of IMRF employers if Moody’s delays implementing these changes until similar GASB 68 pension-reporting regulations go into affect in 2015. Moody’s proposed changes are largely consistent with the requirements of GASB 68.
Legislative Liaison Bonnie Shadid told the Board that the Governor called the General Assembly into a one-day special session on August 17 to address pension reform. No bill advanced, and IMRF remained outside of these discussions.
The Board voted to approve its Legislative Agenda for 2013. The Agenda includes provisions to:
The Board approved sending IMRF’s Annual Report on Illinois Economic Opportunity Investments to Gov. Pat Quinn. The Board has adopted and implemented a policy to favor investment opportunities that promote economic development within the State of Illinois, in cases where other investment characteristics are equal.
The report shows that IMRF employed 38 Illinois-based investment management firms and private equity partnerships as of June 30. These firms managed assets with a market value of $10.3 billion or 39.6% of the total IMRF investment portfolio. Additionally, IMRF is invested in 18 proprieties located in Illinois, representing $82.7 million in aggregate or 11.5% of IMRF’s real estate portfolio, as of March 31. IMRF trades generated $3.1 million in brokerage commissions for the 12-month period ending June 30.
The next monthly Board meeting will be held Friday, September 28, 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 09.10.12