IMRF participating employers who report using Generally Accepted Accounting Principles (GAAP) are required to follow rules established by the Governmental Accounting Standards Board (GASB). In June 2012, GASB issued statement number 68 with the objective of improving accounting and financial reporting on pensions by government entities. IMRF is presenting this online resource to aid participating employers in implementing the new standards required by GASB 68.
The requirements on IMRF employers established by GASB 68 can be summarized into four processes. IMRF employers are required to:
- Project the future benefit payments for current and former employees and their beneficiaries.
- Discount those payments to their present value.
- Allocate the present value over past, present, and future periods of employee service.
- Disclose future inflows and outflows.
Long Term Expected Real Rate of Return by Asset Class
as of 12/31/2023
| Asset Class | Target Allocation | Return 12/31/23 | Projected Returns/Risk | |
|---|---|---|---|---|
| One Year Arithmetic | Ten Year Geometric | |||
| Equities | 34.5% | 23.30% | 6.35% | 5.00% |
| International Equities | 18.0% | 19.64% | 8.00% | 6.35% |
| Fixed Income | 24.5% | 7.62% | 4.85% | 4.75% |
| Real Estate | 10.5% | -4.15% | 7.20% | 6.30% |
| Alternatives | 11.5% | 2.60% | ||
| Private Equity | N/A | 12.35% | 8.65% | |
| Hedge Funds | N/A | N/A | N/A | |
| Commodities | N/A | 7.20% | 6.05% | |
| Cash Equivalents | 1.0% | 5.23% | 3.80% | 3.80% |
as of 12/31/2022
| Asset Class | Target Allocation | Return 12/31/22 | Projected Returns/Risk | |
|---|---|---|---|---|
| One Year Arithmetic | Ten Year Geometric | |||
| Equities | 35.5% | -19.12% | 7.82% | 6.50% |
| International Equities | 18% | -17.86% | 9.23% | 7.60% |
| Fixed Income | 25.5% | -11.83% | 5.01% | 4.90% |
| Real Estate | 10.5% | 12.83% | 7.10% | 6.20% |
| Alternatives | 9.5% | 3.99% | ||
| Private Equity | N/A | 13.43% | 9.90% | |
| Hedge Funds | N/A | N/A | N/A | |
| Commodities | N/A | 7.42% | 6.25% | |
| Cash Equivalents | 1.0% | 3.18% | 4.00% | 4.00% |
If you follow GASB 68 rules for your financial reporting, we've developed a spreadsheet to help you reconcile information included in the following documents: Your GASB 68 Report(s), the IMRF Schedule of Changes in Fiduciary Net Position by Employer, and the GRS vs. IMRF Reconciliation Adjustments Schedule.
Download the spreadsheet here. You will find the three other documents mentioned above in the Annual Document section of Employer Access.