November 20 Board Meeting Highlights

Board Room
December 2, 2015

Board Approves IMRF Budget for 2016

During the November 20 Board Meeting, the IMRF Board of Trustees unanimously approved IMRF’s budget for 2016.

The document estimates 2016 revenues (member contributions, employer contributions, and investment returns) and 2016 expenditures (benefit payments, refunds, investment fees, administrative expenses, and capital projects).

IMRF’s primary budgetary objective is to plan for sufficient funds to continue to pay benefits, while providing IMRF members and employers outstanding customer service. All expenditures are reviewed closely for alignment with IMRF’s 2014-2016 Strategic Plan.

CIO Reports on 2014 Investment-Management Fees

Chief Investment Officer Dhvani Shah reported that IMRF paid $106 million in investment-management fees during 2014. During the same time period, the value of the IMRF portfolio increased by $1.4 billion, and fees paid represented 0.31% of IMRF’s $34.7 billion portfolio.

While fees will continue to increase along with the size of the IMRF portfolio, Shah said, IMRF places a high priority on negotiating the lowest fees possible. Dating back to 2012, Shah estimated that IMRF has negotiated $30 million in fee reductions.

Executive Director Reports on Appearance Before Senate Committee

Executive Director Louis W. Kosiba discussed IMRF staff's November testimony before the Illinois Senate Special Committee on Pension Investments.

The Committee annually requires IMRF and other public retirement systems to report on their utilization of Minority-, Female-, and Persons with a Disability-Owned Business (MFPDOB) investment-management firms.

In total, MFPDOB firms manage $6.4 billion, or about 18%, of IMRF’s $34.7 billion portfolio. During 2015 alone, IMRF has committed an additional $550 million to MFPDOB firms. IMRF will continue to strategically diversify its portfolio through increased allocations to MFPDOB firms, Kosiba said.

Board Approves 2016 Legislative Agenda

The Board approved IMRF’s Legislative Agenda for 2016.

The agenda includes four proposals for the General Assembly to consider during the 2016 session. They include: