Changes in funding requirements may result from amendments to the Illinois Pension Code changing IMRF pensions and benefits, from changes in employee status, from changes in the financing status of individual IMRF employers, or from changes in actuarial assumptions.
For 2014, actuarial assumptions in effect for Regular members are as follows:
(a) Investment Return |
7.5% per annum, compounded annually, net of expenses, including an inflation component of 4.0%.
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(b) Payroll Growth |
4.00% per annum, compounded annually. Membership is assumed to remain constant.
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(c) Retirement Age |
Rates varying by age and sex. See table below for sample values.
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(d) Mortality for Actives and Annuitants |
RP-200 Combined Healthy Mortality Table, adjusted for mortality improvements to 2020 using projection scale AA. Male rates were multiplied by 120% and female rates were multiplied by 92%. The active tables were further modified to reflect IMRF experience. Among the active members, 80% of males and 70% of females were assumed to be married
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(e) Disability
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Graduated rates by age. See table below for sample values. |
(f) Separation and Salary Increases |
Graduated rates by age and service. See table below for sample values.
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(g) Asset Valuation Method |
Market Related Value that reflects five-year averaging of investment gains and losses.
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(h) Liability Valuation Method |
The Entry Age Actuarial Cost Method is applied on an aggregate basis to determine plan liabilities. Gains and losses become part of unfunded liabilities.
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Sample Annual Rates per 100 Employees |
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Active Mortality |
Disability |
Pay Increase Next Year |
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Age |
Male |
Female |
Male |
Female |
(6+ Yrs. of Service |
20 |
0.02% |
0.01% |
0.01% |
0.00% |
6.0% |
30 |
0.03% |
0.01% |
0.01% |
0.00% |
5.7% |
40 |
0.06% |
0.02% |
0.03% |
0.01% |
4.9% |
50 |
0.10% |
0.05% |
0.07% |
0.03% |
4.6% |
60 |
0.34% |
0.18% |
0.14% |
0.09% |
4.4% |
65 |
067% |
0.35% |
0.15% |
0.11% |
4.4% |
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Separation |
Retirement |
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Regular (8+ Years of Service) |
SLEP |
Reduced Early |
Normal Unreduced |
SLEP Service |
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Age |
Male |
Female |
Male |
Female |
Male |
Female |
<32 Yrs
|
32+ Yrs |
|
30 |
4.1% |
6.1% |
3.2% |
—% |
—% |
—% |
—% |
—% |
|
35 |
3.3% |
4.9% |
2.1% |
|
|
|
|
|
|
40 |
2.7% |
3.9% |
1.7% |
— |
— |
— |
— |
— |
|
45 |
2.3% |
3.2% |
1.7% |
|
|
|
|
|
|
50 |
2.0% |
2.7% |
1.7% |
— |
— |
— |
— |
23.0% |
40.0% |
55 |
— |
— |
— |
7.25% |
5.75% |
33.0% |
27.0% |
23.0% |
40.0% |
60 |
— |
— |
— |
— |
— |
12.0% |
10.0% |
8.0% |
40.0% |
65 |
— |
— |
— |
— |
— |
25.0% |
23.0% |
23.0% |
40.0% |
70 |
— |
— |
— |
— |
— |
20.0% |
18.0% |
100.0% |
100.0% |
ECO retirement rates were 10 percentage points higher than the above schedule indicates.