| Topic: | IMRF Board |
| Subtopic: | Legislative Activity: Actuarial Cost Studies |
| Date: | 5/31/1990 |
| Status: | Active |
Statement of Policy
Actuarial Cost Studies
The Board of Trustees of the Illinois Municipal Retirement Fund has both a statutory and fiduciary duty to all its members and their beneficiaries to provide a sound, efficient equitable benefit system.
Legislative proposals affecting IMRF’s governing statutes fall into two broad categories:
- proposals which have a determinable cost impact which will result in higher member or employer contribution rates; and
- proposals which have either no cost or an indeterminable cost impact.
Actuarial cost studies to determine the cost impact of legislative proposals are budget items which only the Board may authorize. When feasible, the Board will obtain actuarial cost studies of legislation it proposes or supports. Such studies will be distributed to interested members of the General Assembly, their staffs, commissions and other interested parties.
Actuarial cost studies for legislation opposed by IMRF will be obtained by the Board after weighing the cost of the study against the impact of the proposal on the actuarial soundness of the Fund. Such studies will be distributed in a like manner to studies conducted for legislation IMRF proposes or supports.
Requests for actuarial cost studies for legislative proposals may be made by submitting a written request to the President of the Board. Such requests will be reviewed by the full Board at the next scheduled meeting. In determining whether a request will be honored, the Board will consider all relevant factors, including but not limited to:
- breadth of the impact;
- likely cost impact on the actuarial soundness of the Fund;
- whether the legislative proposal is consistent with Board statements of Policy or IMRF position statements;
- cost of the study;
- any other factor affecting the soundness, efficiency or equality of the IMRF benefit system