IMRF's Executive Director, Louis W. Kosiba, loves hearing from members and retirees! This section is dedicated to compliments, kudos, and concerns that you share with us and his informative responses.
February 2017
RETIREE QUESTION
Both my wife and I are retired members of IMRF and getting monthly benefits.
I was having lunch with a friend and we were discussing the state financial situation. When I mentioned that our IMRF pension could not be affected by the state budget crisis she said that it could.
Is there any possibility that our funds could be affected?
Thanks for any info you could provide.
-Don R.
ANSWER FROM LOU
Donald: I am pleased to hear you and your wife are both enjoying retirement. The simple answer is "No; your benefits cannot be affected. " There are several reasons:
- IMRF does not receive any state funding. So their budget issues are not IMRF's budget issues.
- IMRF is funded by local units of government. If units fail to pay us in a timely manner we pursue collection by garnishing taxes or transfers to that unit of government. So, today, we have 99.9% compliance.
- When you retired, IMRF calculated the amount needed to fully prefund your benefit for life. Those moneys were transferred to an annuitant reserve which is always 100% funded.
- The Illinois Constitution guarantees your benefit. That means Courts are prepared to force payment, if necessary. ( It has never been necessary in Illinois. )
- The state's financial situation affects us all through higher taxes and fees and lower levels of service. BUT, it is not and cannot affect your pension.
I hope this helps. Thank you for asking. Please share my message.
-Louis
