IMRF a Leader in Cost-Effective Customer Service, Study Shows
IMRF ranked among the top 15% of North American public pensions in cost-effective customer service, according to a new study.
Rogier Slingerland, a partner with CEM Benchmarking, Inc., told the IMRF Board of Trustees that IMRF earned high marks in CEM’s recent analysis of 44 public pension systems in the United States and Canada. The study evaluates the operating costs and the customer service performance of the systems. Highlights from the report include:
- IMRF ranked 7 out of 44 in overall service in the peer group.
- IMRF’s total cost was $86 annually per active member and retiree, which was $33 below the average peer group cost.
- IMRF provided the most customer-focused online transaction tools within the peer group.
IMRF Deputy Executive Director Dan Duquette said that staff is in the process of analyzing the study’s findings with an eye towards implementing additional customer service improvements.
Board Highlights Illinois-Based Investments
The Board approved the submission of an annual report to Gov. Bruce Rauner and the General Assembly that documents IMRF investments made in Illinois. Highlights from the report include:
- About 40% of IMRF total assets - $14.2 billion - are invested with Illinois-based investment management firms.
- IMRF is invested in 88 real estate properties in Illinois.
- IMRF's private equity portfolio includes 121 Illinois companies.
- Illinois-based brokers executed $1.86 million in brokerage commissions for the 12-month period ending June 30.
Staff Provides 2Q Strategic Objectives Update
IMRF Executive Director Louis W. Kosiba updated the Board on activities completed during the second quarter in support of IMRF's 2014-2016 Strategic Plan. Highlights from the report include:
- Financial Health and Sustainability Key Result Area
Result: Staff completed the 2014 Comprehensive Annual Financial Report - Investment Returns Key Result Area
Result: The Board approved allocations totaling $200 million to four value-added real estate funds. - Customer Service and Operational Excellence Key Result Area
Result: Two IMRF staff members volunteered to serve as Illinois Performance Excellence (ILPEx) Examiners, increasing IMRF's pool of staff with excellence-oriented expertise. - Workforce Engagement Key Result Area
Result: Executed activities from an organization-wide action plan aimed at enhancing inter-departmental relationships. - Modernization Program Key Result Area
Result: Began User Acceptance Testing of new technology aimed at increasing customer service levels.
Board Hears Legislative Update
IMRF Legislative Liaison Bonnie Shadid told that Board that three of the bills from IMRF's 2015 Legislative Agenda have been signed into law:
- Public Act 99-0239 reduces the time required before IMRF can begin the offset process for delinquent employers with the treasurer or comptroller from 90 days delinquent to 60 days. The law became effective on August 3.
- Public Act 99-0008 removes the State Treasurer as the ex officio treasurer for IMRF.
- Public Act 99-382 updates obsolete language in the Pension Code. The law became effective on August 17.
The General Assembly passed the other bill that made up the Board’s 2015 Legislative Agenda, however, Gov. Rauner ultimately vetoed the bill:
- House Bill 3757 would have given IMRF the authority to assess employers penalties for return-to-work violations, up to the total annuity paid to the member during the return-to-work period. IMRF staff believes having this authority would provide IMRF employers an incentive to better monitor for potential return-to-work violations.
IMRF to Review and Update Board Resolutions
IMRF General Counsel Kathy O'Brien informed the Board that staff had begun a project to review, and if necessary update, all current Board resolutions.
The Illinois Pension Code empowers the Board to pass resolutions to establish rules for the administration of IMRF. Several years ago, IMRF staff reviewed, organized, and categorized all prior Board resolutions, O'Brien said, and it is now time to do so again. Resolutions in need of updating will be brought to the Board in groups over the course of the next several Board meetings.
At this meeting, the Board approved new and updated resolutions related to Board elections and the Freedom of Information Act.
You can learn more about IMRF rules and regulations on www.imrf.org. The website includes a Board Policy Index within the "Forms and Publications Archive."
New IMRF Employers
The Board approved the participation of the following new IMRF employers:
- Mason, Tazewell, Woodford Regional Office of Education (ROE) #53
- Sangamon, Menard ROE #51
- Fulton, Hancock, McDonough, Schuyler ROE
- Salt Fork School District #512
- Spring Garden School District #178
- Bluford School District #318
- Woodlawn School District #209
- Kendall County Special Education Cooperative
- Housing Authority of Gallatin County
- Village of Patoka
- City of Athens
- Putnam Township
- Monroe County Road District #3
Next Board Meeting
The next regularly scheduled Board meeting will be held November 20 at IMRF's Oak Brook headquarters.