Board approves 2026 final rates
The Board approved final employer contribution rates for the 2026 calendar year. 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 for 2026 will be 7.45% of payroll, as compared to 6.99% in 2025.
IMRF employers may access their 2026 Final Rate in Employer Access. Review these resources to learn how to locate your rate information in Employer Access.
Board discusses layered amortization policy and assumed rate of return
IMRF Actuary GRS led a discussion around a new layered amortization policy and an alternative approach to setting IMRF’s assumed rate of return.
Regarding amortization, pension systems like IMRF adopt a schedule for paying off any unfunded liability. Like a mortgage, the payments are spread over a period of years. GRS recommended that IMRF adopt a layered amortization schedule to better align with new actuarial best practices. The recommended policy is more conservative and will pay down any unfunded liability more aggressively, the actuaries said. The Board agreed to vote on GRS’ recommended policy at its December meeting.
The Board then continued a discussion from December 2024 related to IMRF’s assumed rate of return. The impetus for the discussion originally came from Trustee Peter Stefan’s proposal to implement a more dynamic and flexible assumed rate of return (ARR). The Trustees had different opinions on the proposal and directed GRS to include the new model’s potential ARR calculation in the information it provides to the Board every November when it considers the ARR for the following year.
Review the Actuaries’ presentation for more details.
Staff provides quarterly update on 2023-2025 Strategic Plan’s implementation
Staff updated the Board on activities undertaken during the third quarter in support of the 2023-2025 Strategic Plan. Key successes within each of the Strategic Plan’s Key Result Areas (KRAs) included:
Financial Health
- IMRF staff and Actuary GRS prepared to lead a Board discussion during November on funding policy and the dynamic and flexible rate of return assumption.
Customer Engagement
- Conducted employer webinars on more advanced Employer Access functionality, providing opportunities for employers to get answers regarding data collection pain points.
Workforce Engagement
- Each IMRF department developed action plans for 2026 to support and enhance employee engagement, and ultimately, performance.
Operational Excellence
- Prepared for the November secure sites software update, which was successfully implemented.
New units of government join IMRF
The Board approved the participation of the following new employers:
- Douglas County Soil and Water Conservation District
- Knox County Multi Township Assessment District
Next Board meeting
The next regular meeting of the IMRF Board of Trustees will be December 19 at 9 AM.