Board approves 2020-2022 Strategic Plan
The IMRF Board of Trustees approved a new three-year Strategic Plan for the organization. The 2020-2022 Strategic Plan is the output of a months-long planning methodology that included input from both internal and external stakeholders. The new Strategic Plan centers on four Key Result Areas (KRA), four Strategic Objectives, and six Key Strategies:
- KRA: Financial Health
- Strategic Objective: To achieve and maintain a funding level that sustains the Plan.
- Key Strategy: Utilize portfolio construction tools and principles, including asset liability models, portfolio optimization, cost control, evaluation of various investment program structures, and relevant performance measurements to increase net returns.
- KRA: Customer Engagement
- Strategic Objective: To foster and maintain engaged members and employers.
- Key Strategy: Develop a standardized learning and development experience for staff and leaders.
- Key Strategy: Research Contact Center best practices and strategies.
- KRA: Workforce Engagement
- Strategic Objective: To foster and maintain an engaged workforce.
- Key Strategy: Develop a standardized learning and development experience for staff and leaders.
- Strategic Objective: To provide world-class customer service at a reasonable cost.
- Key Strategy: Implement the Horizon Project.
- Key Strategy: Develop and implement an organizational Risk Management Program
IMRF will now develop Action Plans that outline specific activities to execute the Key Strategies. 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.
You can view the 2020-2022 Strategic Plan on IMRF’s website.
Board approves 2020 rates
The Board approved 2020 IMRF employer contribution rates.
The rates, which are unique to each IMRF employer, are expressed as a percentage of payroll. The average employer contribution rate for the Regular Plan will increase from 9.06% in 2019 to 10.91% in 2020. The increase is primarily due to the change in IMRF’s assumed rate of return on its investment portfolio from 7.5% to 7.25%.
IMRF employers may access their 2020 Final Rate Notice within Employer Access.
Board approves 2020 Budget
The Board approved IMRF’s budget for 2020. The document estimates 2020 revenues (member contributions, employer contributions, and investment returns) and 2020 expenses (benefit payments, refunds, investment fees, administrative expenses, and capital projects).
You can view the 2020 Budget within the Transparency Portal section of IMRF’s website.
Actuarial consultant reviews IMRF’s funding policy
IMRF’s funding policy is appropriate and no adjustments are currently recommended, according to IMRF’s independent actuary GRS Retirement Consulting.
GRS periodically reviews IMRF’s funding policy and reports any recommended adjustments to the Board. The funding policy sets in place a plan to accumulate the assets required to pay future benefits. It includes the set of procedures IMRF uses to determine annual contributions from employers. It also defines IMRF’s goal of achieving 100% funding status.
Consultant Brian Murphy said IMRF’s funding policy is appropriate and has played an important part in the organization achieving an actuarial funded status of 90%, which compares favorably to other public pensions both in Illinois and across the country.
“There are very few plans above that. It’s an excellent result,” Murphy said. “You are in a good position, and we want to see you stay there.”
Board honors Trustee Sharon U. Thompson
The Trustees passed a formal resolution honoring former Annuitant Trustee Sharon U. Thompson.
Thompson, who passed away on October 3, served 21 years on the IMRF Board and was the second-longest tenured Trustee in IMRF history.
At the meeting, which was attended by many of Thompson’s family members, IMRF Executive Director Brian Collins said that the entire organization was saddened by her passing.
“We lost one of the most important members IMRF has ever had,” Collins said. “At a personal level, she really helped me understand what it means to deeply care about this institution.”
You can view the resolution on IMRF’s website.
Board approves new resolutions
The Board passed the following resolutions:
- Board Resolution 2019-11-08(a): Rescinds multiple older resolutions that became obsolete.
- Board Resolution 2019-11-08(b): Adds a Roth savings option to the IMRF staff deferred compensation plan.
New units of government join IMRF
The Board approved the participation of the following new employers:
- Hickory Point Township
- Manhattan-Elwood Public Library District
- Marine Township
Next Board meeting
The next regular meeting of the IMRF Board of Trustees will be December 20 at 9 AM at IMRF's Oak Brook headquarters.