New Strategic Objectives, Key Strategies reviewed with Board
As part of IMRF’s Triennial Strategic Planning Process, the IMRF Board of Trustees discussed four Strategic Objectives and six supporting Key Strategies for the organization. The Strategic Objectives and Key Strategies will serve as the foundation of IMRF’s comprehensive 2020-2022 Strategic Plan, which will be rolled out later this year. IMRF staff reported that the Objectives and Strategies were the output of IMRF’s formal strategic planning methodology. The methodology includes multiple steps, beginning with:
- Validating IMRF’s existing Mission, Vision, and Values
- Conducting a Societal, Technological, Economic, and Political (STEP) Analysis and a Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis with various stakeholders
- Using the results of those analyses to identify IMRF’s Strategic Advantages, Challenges, and Opportunities
- Developing Strategic Objectives and Key Strategies associated with IMRF’s four Key Result Areas of Financial Health, Customer Engagement, Workforce Engagement, and Operational Excellence
IMRF will now develop Action Plans outlining specific activities to be executed to implement the Key Strategies. Staff will finalize the 2020-2022 Strategic Plan document, based around the four Strategic Objectives and six Key Strategies, for presentation at the November Board meeting. Progress on Action Plan implementation will be monitored during IMRF staff’s monthly Leadership Scorecard meetings, and in quarterly update reports to the Board of Trustees.
IMRF ranks sixth amongst North American public pensions in cost-effective customer service, report concludes
IMRF is one of the leading public pensions in North America in terms of 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 2018 IMRF ranked sixth out of 43 public pensions that participate in CEM’s annual study. The CEM study compares public pensions’ customer-service levels and total spending. The study includes some of the largest public pensions in North America, including the California Public Employees’ Retirement System and the Teachers Retirement System of Texas. The CEM report showed IMRF’s:
- total customer service score increased from 87 in 2015 to 89 (on a scale of 0-100) in 2018.
- total cost per member and annuitant of $95 was $29 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 highest of the 43 funds.
“You are in that sweet spot,” Mangat said. “You have very strong service and cost metrics, despite higher transactions, higher complexity, and a higher cost environment.”
Board approves report to Governor on IMRF’s Illinois-based investments
The Board approved the submission of an annual report to Gov. J.B. Pritzker and the General Assembly that details IMRF investments made in Illinois.
Highlights from the report include:
- About 36% of IMRF total assets - $15.4 billion - are invested with Illinois-based investment management firms and private equity partnerships.
- IMRF is invested in 133 real estate properties in Illinois.
- IMRF's private equity portfolio includes 122 Illinois companies.
- Illinois-based brokers executed more than $1.2 billion in brokerage commissions for the 12-month period ending June 30.
Resolutions passed by Board
The Board passed the following resolutions:
- Board Resolution 2019-08-10(a): Rescinds multiple older resolutions that became obsolete.
- Board Resolution 2019-08-10(b): Amends the IMRF definition of earnings to include both military earnings and differential pay.
- Board Resolution 2019-08-10(c): Eliminates the need for a natural or adoptive parent to submit guardianship documentation to become representative payee of a minor child entitled to a death benefit.
- Board Resolution 2019-08-10(d): Amends the IMRF staff Policy Against Harassment to comply with the Illinois Workplace Transparency Act.
Staff updates Board on legislation
IMRF staff discussed the bills impacting IMRF that passed the General Assembly during the spring session. None of the bills were opposed by IMRF. No bills related to pension fund consolidation progressed during the spring session.
- Public Act 101-0151, formerly House Bill 3446, allows members to retain disability eligibility if they have up to a 3-month gap in employment prior to disability, and return to participation with a different employer. Prior to this law, the member had to return to the same employer to retain eligibility. This bill was part of the IMRF Board’s 2019 Legislative Agenda.
- Public Act 101-0473, formerly House Bill 2460, requires all public agencies and units of government in Illinois to consider specific sustainability goals.
- Public Act 101-0492, formerly House Bill 2884, extends to members participating with certain educational employers the ability to roll over unused, unpaid sick leave between multiple employers. Currently, this ability only applies to members participating with school districts.
- Public Act 101-0504 , formerly House Bill 3263, requires IMRF to post certain employer cost and participation information on its website.
- Public Act 101-0544, formerly Senate Bill 1236, prohibits an elected official who is receiving an IMRF pension based on service in the same position from also receiving a salary for that position. If the official was receiving an IMRF pension on August 23, 2019, effective at the beginning of their next term of office they must either suspend their IMRF pension or their salary will be reduced to zero.
- Public Act 101-0546, formerly Senate Bill 1264, requires all pension systems to send an annual report to the State Treasurer’s Office regarding unclaimed assets.
For more information on these and other bills that may impact IMRF, see IMRF’s website.
Latest phase of technology modernization project complete, staff reports
IMRF staff reported the successful completion of Phase 3 of a four-phase project to modernize the technologies and processes IMRF uses to administer its pension system. The first three project phases involved designing the new system, purchasing necessary hardware and software, and building the virtual environment needed to test the new systems. Phase 4 involves building, testing, training, and rolling out the new systems. The new systems, which will go online in 2021, will improve the way employers and members interact with IMRF. For example, more transactions will go online, enabling faster and more modern communication. More information will be shared with employers and members as the project progresses.
Board honors retiring Deputy Executive Director
The Board passed a Resolution of Appreciation honoring Deputy Executive Director Dan Duquette, who is retiring at the end of September.
Duquette has worked for IMRF for more than 29 years. During his tenure, he supported three different Executive Directors and more than 35 Trustees. Duquette played a foundational role in the establishment of many of IMRF’s core programs and processes, and provided leadership to the vast majority of IMRF’s employees and departments, including Human Resources, Benefits, Disability, Member Services, Field Services, Office Services, Information Services, and Performance Excellence.
Duquette thanked the Board and IMRF staff for its commitment to providing the highest quality retirement services for its members and employers.
“IMRF is well positioned for continued success with a strong leadership team. We have a great staff of dedicated employees, who will do whatever is needed to serve our membership,” Duquette said. “I have great confidence in each of you to lead the IMRF team to even higher heights.”
New units of government join IMRF
The Board approved the participation of the following new employers:
- Union/Alexander Joint Emergency Telephone System Board
- River Valley Mass Transit District
- Sheridan Sanitary District
- Winnebago County Special Education Cooperative
- Woodford County Special Education Association
- Helvetia Township
- Leaf River Township
Next Board meeting
The next regular meeting of the IMRF Board of Trustees will be November 22 at 9 a.m. at IMRF’s Oak Brook headquarters.