Board Meeting Highlights

Actuaries provide IMRF Annual Valuation

Actuaries Gabriel, Roeder, Smith (GRS) and Co. presented IMRF's Actuarial Valuation for 2018 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 market value of IMRF's assets was approximately $38.8 billion as of 12/31/18.
• IMRF was approximately 90% funded on an actuarial basis as of 12/31/18.
• The average employer Regular Plan contribution rate will increase from 9.06% of payroll in 2019 to 10.91% of payroll in 2020.

Some demographic highlights from the valuation include:

2019 Employee Trustee election plan approved

The Board approved IMRF’s plan for conducting an Employee Trustee election later this year.

IMRF active members will elect one Employee Trustee for a five-year term beginning January 1, 2020. The position will open when Employee Trustee Natalie Copper’s term expires at the end of 2019.

IMRF’s website will be updated with the detailed election procedures on June 28.

Board passes resolutions

The Board passed the following resolutions:

• Board Resolution 2019-05-09(a): Establishes the records IMRF will accept to establish proof of date of birth.
• Board Resolution 2019-05-09(b): Clarifies the procedures for concluding an audit and implementing findings.
• Board Resolution 2019-05-09(c): Rescinds multiple older resolutions that became obsolete.
• Board Resolution 2019-05-09(d): Consolidates existing resolutions related to certification of elected and appointed official participation; removes the two-year recertification requirement; and modifies rules regarding recertification of non-governing body elected officials.

Staff provides update on implementing 2017-2019 Strategic Plan objectives

IMRF Executive Director Brian Collins 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

• Approved more than $700 million in commitments to private equity and real estate funds.

Customer Engagement KRA

• Introduced online surveys at certain member workshops as a pilot project, as an alternative to print-based surveys.

Workforce Engagement

• Developed department-level Action Plans to continue to support the high level of staff engagement at IMRF.

Operational Excellence

• Completed the third phase of IMRF’s project to modernize the technologies used to administer the pension system. Phase 3 involved the installation of hardware and software necessary to test and rollout the new technologies.

Board continues work on 2020-2022 Strategic Plan

As part of IMRF’s triannual strategic planning process, the Board completed STEP and SWOT analyses. As part of the Societal, Technological, Economic, and Political (STEP) analysis, the Trustees considered macro-environmental factors that could impact IMRF over the next three years. As part of the Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis, the Trustees considered characteristics of IMRF and the external environment that could impact the organization over the next three years. IMRF staff will use the input gathered during the exercise to inform the Strategic Objectives that will be put forward for Board review in August. In June, IMRF staff will complete SWOT analyses with IMRF staff and external stakeholder groups.

New employers join IMRF

The Board approved the participation of the following new employers:

• Village of Pittsburg
• Brimfield Public Library
• Walnut Park District
• Akin Water District
• Grundy County Emergency Telephone System Board

Next Board meeting

The next regular meeting of the IMRF Board of Trustees will be August 23 at 9 a.m. at IMRF’s Oak Brook headquarters.