IMRF leads in cost-effective service, report concludes
IMRF remains among the leaders in cost-effective customer service, according to a new report.
Kam Mangat, a Vice President with CEM Benchmarking Inc., told the IMRF Board of Trustees that in 2017 IMRF ranked in the top quartile of the 44 public pensions that participate in CEM’s annual study. The CEM study compares public pensions’ customer-service levels and total spending.
The report showed IMRF’s:
- total service score increased from 86 in 2014 to 88 in 2017.
- total cost per member and annuitant of $95 was $24 below the peer average. This came despite operating in the fourth-highest cost environment.
- customer transaction volume – which includes activities like fielding calls and emails, in-person member counseling, and processing retirement applications – ranked fifth of the 44 funds.
“These are solid results,” Mangat said. “You provide higher service levels and have lower costs relative to your peers.”
Board provides Springfield an update on IMRF’s 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 - $16.3 billion - are invested with Illinois-based investment management firms and private equity partnerships.
- IMRF is invested in 107 real estate properties in Illinois.
- IMRF's private equity portfolio includes 121 Illinois companies.
- Illinois-based brokers executed almost $900,000 in brokerage commissions for the 12-month period ending June 30.
Staff updates Board on legislation
The two bills that made up the Board’s 2018 Legislative Agenda were passed by the General Assembly, IMRF Legislative Liaison Bonnie Shadid reported, and have since been signed into law by the Governor.
- Public Act 100-1097, formerly Senate Bill 3119, prohibits IMRF participation by former police chiefs who meet all the following criteria:
- Participated as a police chief in an Article 3 police pension fund in a city, village, or town.
- Take a new job working with the same municipality for the police department or in an advisory capacity.
- Have no IMRF service credit prior to August 26, 2018.
- Public Act 100-0935, formerly Senate Bill 2884, allows IMRF to offer electronic voting options for its Employee and Annuitant Trustee elections. IMRF plans to postpone implementing an electronic voting system until after 2021, once the organization has completed an upgrade of our database. Any system introduced will continue to allow members and annuitants to vote by paper ballot if preferred.
For more information on these and other bills that may impact IMRF, see IMRF’s website.
Staff provides update on executing 2017-2019 Strategic Plan objectives
The Board received an update on activities undertaken during the second 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:
- Funding status on an actuarial basis increased from 90.5% on December 31, 2017, to 94.6% as of July 31, 2018.
Customer Engagement KRA:
- At least 95% of surveyed members and employers during 2018 are satisfied with IMRF workshops and transactions.
Workforce Engagement KRA:
- IMRF ranked in the 95th percentile on a 2018 nationwide survey of employee engagement.
Operational Excellence KRA:
- The average IMRF Call Center hold time has decreased 8 seconds from the 2017 average, and has dropped significantly below IMRF’s target.
New units of government join IMRF
The Board approved the participation of the following new employers:
- Blackhawk Rural Mass Transit in Rock Island County
- Murdock Newman Mass Transit in Douglas County
- North Riverside Public Library District
- Region 1 Planning Council in Winnebago County
- Mount Carroll District Library
- Old Ripley Township
Next Board Meeting
The next regular meeting of the IMRF Board of Trustees will be November 16 at 9 a.m. at IMRF’s Oak Brook headquarters.