Financial Results 2025

IMRF saw an increase in its investment portfolio in 2025.

“At IMRF, we take pride in being locally funded and financially sound,” said Executive Director Brian Collins. “The strong financial results from 2025 will help us guarantee the financial security of our current and future retirees.”

Financial Highlights for 2025

• IMRF’s investment portfolio earned a net return of about 14.7%.
• The investment portfolio increased by about $5.7 billion from $55.2 billion on December 31, 2024, to $60.9 billion on December 31, 2025.
• IMRF had an actuarial funded status of about 96.9%.

These figures are estimates and unaudited. IMRF will share final figures in its 2025 Annual Comprehensive Financial Report.

IMRF Is Nearly 100% Funded

A pension plan’s funded status is a key barometer of its fiscal health. According to the National Association of State Retirement Administrators (NASRA), the typical U.S. pension plan is about 76.7% funded. At the end of 2025, IMRF reached a funded status of 96.9%. This means that IMRF has 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 2025 will put downward pressure on local government contribution rates in future years and relieves pressure on municipal taxpayers.

IMRF’s Continued Financial Growth

Over the past decade, IMRF has achieved historic significant financial growth and reached new levels of fiscal stability. On December 31, 2016, IMRF had $36.4 billion in its investment portfolio, which means the portfolio increased by 67% in the past 10 years. Additionally, during that time IMRF exceeded its assumed annual rate of return of 7.25% in eight of the past 10 years. This financial growth every year increased IMRF’s funding ratio from 88.9% to 96.9%.

Market Outlook for 2026

The economic outlook for 2026 remains uncertain. Interest rates and inflation could move in ways that surprise investors, and the global economy could grow faster or slower than expected. World events and government policy changes could also quickly shift markets. IMRF’s strong financial foundation and long-term focus enables the organization to withstand periods of market weakness.

*Please note the numbers in the video are estimates and unaudited.