Actuaries provide IMRF Annual Valuation
Actuaries Gabriel, Roeder, Smith (GRS) and Co. presented IMRF's Actuarial Valuation for 2016 to the IMRF Board of Trustees.
The valuation details IMRF's financial position and highlights changes to the demographics of the IMRF membership during the prior calendar year. The valuation also makes recommendations that the Board uses to set employer contribution rates for future years.
According to the valuation:
- The average employer Regular Plan contribution rate will decrease from 11.34% of payroll in 2017 to 11.24% of payroll in 2018.
- The market value of IMRF's assets was approximately $36.4 billion as of 12/31/16.
- IMRF was approximately 88% funded on a market basis as of 12/31/16.
GRS Senior Consultant Brian Murphy commended the IMRF Board of Trustees for both maintaining relatively stable contribution rates for IMRF employers, and at the same time ensuring adequate contributions are being made to fund current and future obligations.
“IMRF is in great financial condition,” Murphy said. “This is something everyone can be proud of.”
Some demographic highlights from the valuation include:
| Number of All IMRF Members | As of 12/31/16 | As of 12/31/15 |
|---|---|---|
| Tier 1 Active | 117,962 | 125,563 |
| Tier 2 Active | 56,873 | 48,269 |
| Retirees | 122,086 | 117,028 |
| Inactive | 132,213 | 141,236 |
| Total | 429,134 | 432,096 |
| Number of IMRF Active Members | As of 12/31/16 | As of 12/31/15 |
|---|---|---|
| Regular Plan | 170,527 | 169,431 |
| SLEP Plan | 4,143 | 4,167 |
| ECO Plan | 165 | 234 |
| Total | 174,835 | 173,832 |
2017 Executive Trustee election plan approved
The Board approved IMRF’s plan for conducting an Executive Trustee election later this year.
IMRF employers will elect one Executive Trustee for a five-year term beginning January 1, 2018. The position will open when Executive Trustee Tom Kuehne’s term expires at the end of 2017.
IMRF’s website will be updated with the detailed election information on June 30.
Staff provides update on implementing 2017-2019 Strategic Plan objectives
IMRF Executive Director Louis W. Kosiba updated the Board on activities undertaken during the first quarter in support of the 2017-2019 Strategic Plan. Key successes within each of the Strategic Plan’s Key Result Areas (KRAs) included:
Financial Health KRA:
- Updated the Board’s Statement of Investment Policy, Real Estate Statement of Investment Policy, and the Investment Committee Charter.
Customer Engagement KRA:
- Released IMRF’s first quarterly Voice of the Customer Survey for employers to identify IMRF customer service strengths and opportunities for improvement.
Workforce Engagement:
- Developed department-level Action Plans to continue to support the high level of staff engagement at IMRF.
Operational Excellence:
- Executed cyber-security training for IMRF staff.
Resolution passed involving participation of Appointed Officials
The Board adopted a resolution requiring all governing bodies, whose members are appointed, to pass a resolution affirming that those members—if they are eligible for IMRF participation—meet the IMRF hourly standard.
This new rule was adopted by the Board due to the difficulty of determining how many hours of duty are required for appointed members of a governing body.
For more detailed information, see IMRF Special Memorandum #339.
New units of government join IMRF
The Board approved the participation of the following new employer:
- Municipal Consolidated Dispatch
Next Board meeting
The next regular meeting of the IMRF Board of Trustees will be August 18 at 9 a.m. at IMRF’s Oak Brook headquarters.