Board Approves 2017 Rates
The Board approved IMRF employer contribution rates for the 2017 calendar year. The rates, which are unique to each IMRF employer, are expressed as a percentage of payroll. The average employer contribution rate will drop from 11.73% in 2016 to 11.34% in 2017, largely due to lower costs associated with the Tier 2 benefit structure.
To view your unique employer contribution rate, log in to Employer Access.
Target Strategic Asset Allocation Adjusted
The Board approved the following adjustments to IMRF’s target strategic asset allocation for the investment portfolio:
- Reduced the international equity target from 17 to 16 percent
- Reduced the alternatives target from nine to eight percent
- Increased the fixed income target from 27 to 29 percent
- The Board agreed to maintain the existing target allocation of 38 percent to U.S. equity, eight percent to real estate, and one percent in cash.
IMRF staff recommended the changes following completion of an asset-liability modeling study by consultant Wilshire. The new target strategic asset allocation will go into effect on January 1, 2017.
Board Approves 2017 Budget
The Board approved IMRF’s budget for 2017. The document estimates 2017 revenues (member contributions, employer contributions, and investment returns) and 2017 expenses (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 Strategic Plan.
Executive Director Search Committee Formed
The Board approved the formation of a Search Committee to identify a successor for IMRF Executive Director Louis W. Kosiba. Kosiba, Executive Director since 2001, will retire on December 31, 2017.
Per the Illinois Pension Code (40 ILCS 5-7-186), the Board hires one employee, the Executive Director, who is responsible for carrying out all administrative duties of IMRF, including the supervision of 205 staff members.
The newly created search committee will include Executive Trustees Gwen Henry (chairperson), Sue Stanish, and Tom Kuehne; Employee Trustee Alex Wallace; and Annuitant Trustee Sharon U. Thompson. Any recommendations will be brought to the full Board for a vote.
The Board’s intent is to conduct a nationwide search, in addition to considering any internal candidates. Key steps in the process will include hiring an executive search firm to assist; reviewing and revising the Executive Director job description as needed; defining a timeline for making a hiring decision; interviewing candidates; and negotiating a final contract.
Prior to becoming Executive Director, Kosiba served as general counsel from 1990 to 2001. A native Chicagoan, Kosiba holds a juris doctor degree and a master’s in business administration from the University of Illinois at Urbana-Champaign. Kosiba is one of the founding attorneys of the National Association of Public Pension Attorneys, and is an active member of the National Association of State Retirement Administrators.
New Participating Employers
The Board approved the participation of the following new IMRF employers:
- Village of Payson
- The Multi Township Assessment District in Coles County
- Scott County Housing Authority
- West Central Joint Emergency Telephone System Board
Next Board Meeting
The next meeting of the IMRF Board of Trustees is December 16 at IMRF’s main office in Oak Brook.