IMRF Announces Preliminary Financial Results for 2024
IMRF saw an increase in its investment portfolio in 2024.
Financial Highlights for 2024
- IMRF’s investment portfolio earned a net return of about 9.2%.
- Grew the investment portfolio by about $2.8 billion from $52.1 billion on December 31, 2023, to $54.9 billion on December 31, 2024.
- IMRF had an actuarial funded status of about 96.4%.
These figures are estimates and unaudited. IMRF will share final figures in its 2024 Annual Comprehensive Financial Report.
IMRF Is Nearly 100% Funded
Funded status is a key barometer of a pension plan’s fiscal health. The typical U.S. pension plan is about 76.4% funded, according to the National Association of State Retirement Administrators (NASRA). IMRF’s 96.4 % funded status means it has on hand today nearly all the money needed to pay the entirety of its pension obligations to all current retirees and active workers.
Investment Returns Lower Municipal Government Contributions
IMRF contributions from local government fluctuate based on the fund’s investment performance. When IMRF exceeds its assumed annual rate of return of 7.25%, the money needed from local government in future years decreases. The strong investment return from 2024 will put downward pressure on local government contribution rates in future years.
Market Outlook for 2025
The outlook for 2025 remains uncertain. The ongoing conflicts abroad pose a threat to global growth, and the impact of the new U.S. administration’s policies remains unknown. At the same time, there is cause to be optimistic. Interest rates are expected to fall, which could lead to equity gains. IMRF’s strong financial position and long-term investment horizon position the organization to weather any market downturn.
“When it comes to investing, the only certainty is uncertainty,” IMRF Executive Director Brian Collins said. “Regardless, you can count on IMRF to deliver for its members and employers.”
*Please note the numbers in the video are preliminary.
IMRF Annual Financial Reports
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