IMRF invites you to read our 2022 Popular Annual Financial Report (PAFR). Derived from IMRF’s 2022 Annual Comprehensive Financial Report (ACFR), the PAFR is consistent with generally accepted accounting principles (GAAP) and shares a summary of our financial condition, highlighting key insights in five sections. Further details can be found in the ACFR. Click the links below to navigate to each section of our 2022 PAFR.
Fiduciary Net Position
IMRF's fiduciary net position—total assets and deferred outflow of resources minus liabilities and deferred inflow of resources—was $48.2 billion as of December 31, 2022. That was a decrease of $9.5 billion, or about (16.5)%, from 2021. This decrease reflects significantly lower investment returns due to the down market in 2022.
Despite losses sustained in 2022, IMRF’s financial position remains strong. With 44.7% growth from 2013 - 2022, an addition of $14.9 billion, IMRF's long-term investment strategy withstands short-term losses.
Funding Status
IMRF’s funding status is a key indicator of our overall financial health. It reflects the percentage of promised benefits that IMRF currently has the assets to pay. IMRF strives for 100% funding, because it guarantees that the system can meet its obligations and is most cost effective for taxpayers.
As of December 31, 2022, IMRF was 98.2% funded on an actuarial basis. IMRF's actuarial funding status is determined by independent actuaries using a "smoothing" technique that recognizes investment gains and losses over a five-year period. The actuarial funding status is used to set IMRF contribution rates for participating units of government. Below you will see, IMRF's funded status has remained above 87% since 2013.
Investments
IMRF’s investment portfolio was valued at $47.8 billion on December 31, 2022.
The portfolio’s 2022 rate of return was (12.9)%, after investment management fees. This corresponds to an investment loss of $7.9 billion.
The 2022 financial market was down compared to the 2021 market, impacted by the war abroad, supply chain issues, increases in wages, and inflation impacting the economy. Despite the Federal Reserve raising rates seven times throughout 2022, inflation prevailed.
In 2022, IMRF’s domestic equity portfolio decreased (19.3)% after fees, and the international equity portfolio decreased (18.1)% after fees. The fixed income portfolio decreased (11.9)% after fees. Conversely, IMRF’s real estate portfolio returned 12.8% after fees, and the alternative investments portfolio returned 4.0% after fees in 2022.
IMRF’s long-term goal is to earn an annualized total fund return of 7.25%, after investment management fees. While IMRF did not achieve this goal in 2022, IMRF does achieve its investment return goal over longer time horizons. The bar chart below shows IMRF’s returns over the past 30 years, compared to the 7.25% goal.
2022 Target vs. Actual Asset Allocation
The IMRF Board of Trustees revised the target asset allocation for the IMRF investment portfolio in 2022. The target allocation has two key goals: maximize return and minimize risk. The Board continually evaluates the portfolio’s target asset allocation and makes adjustments as necessary.
As the value of the assets fluctuates, the portfolio’s actual allocation always varies from the target. The goal is for the actual allocation to be within 4% of the target within each asset class.
On December 31, 2022, the portfolio’s actual allocation was within the prescribed range for all asset classes.
Revenue and Expenses
Revenues
IMRF’s revenue comes from 3 sources: member contributions, IMRF employer contributions (from participating units of government), and investment income. IMRF's total revenue in 2022 was $(6.6) billion.
About 98% of IMRF members participate in the Regular Plan. These members pay 4.5% out of every paycheck to fund IMRF benefits. Total member contributions were more than $501 million in 2022.
All IMRF employers also make monthly payments to support the IMRF benefit system. Each IMRF employer pays an amount calculated by IMRF’s actuary based on its IMRF assets, liabilities, and the demographics of its workforce. Total employer contributions were $808 million in 2022.
Member and employer contributions are invested, and IMRF investment returns have historically accounted for the majority of IMRF’s revenue. In 2022, IMRF investments lost $(7.9) billion.
As you can see from the 3-year comparison below, member and employer contributions remain stable while investment returns are historically strong but volatile.
Expenses
IMRF’s expenses include annuities (pension payments), disability and death benefits, refunds to members, and the cost to administer IMRF’s benefit system. In 2022, IMRF’s total expenses equaled about $2.9 billion.
Total expenses increased by about 6.9% or $190 million from 2021 to 2022.
Members and Employers
IMRF experienced growth in members and a decline of employers in 2022. The decrease in employers was due to consolidations of units of government.
Members
Over the last three years, IMRF members increased by 7.2%, totaling 474,920 active members, inactive members, and retirees in 2022.
| Members | 2022 | 2021 | 2020 |
|---|---|---|---|
| Active | 175,224 | 172,310 | 170,735 |
| Inactive | 148,128 | 138,391 | 129,779 |
| Retirees | 151,568 | 147,134 | 142,329 |
| Grand Total | 474,920 | 457,835 | 442,843 |
The typical IMRF retiree receives a modest benefit, earned after decades of public service. In 2022, the majority of IMRF’s 150,000 retirees received an annual pension benefit of under $24,000.
| Annual Pension Amount | Annuitants |
|---|---|
| Under $1,200 | 6,139 |
| $1,200 to under $3,000 | 14,371 |
| $3,000 to under $6,000 | 24,987 |
| $6,000 to under $9,000 | 19,509 |
| $9,000 to under $12,000 | 14,961 |
| $12,000 to under $24,000 | 33,761 |
| $24,000 to under $36,000 | 15,616 |
| $36,000 to under $48,000 | 8,791 |
| $48,000 to under $60,000 | 5,136 |
| $60,000 to under $72,000 | 3,114 |
| $72,000 and over | 4,274 |
Employers
The Illinois Pension Code specifies the units of government required to participate in IMRF and those that may elect to join. In 2022, 3,027 units of government (employers) participated in IMRF, compared to 2,977 in 2013.
| Calendar Year End | Cities | Villages | Counties | School Districts | Townships | Other | Total |
|---|---|---|---|---|---|---|---|
| 2022 | 262 | 425 | 101 | 850 | 486 | 903 | 3,027 |
| 2013 | 258 | 413 | 101 | 858 | 480 | 867 | 2,977 |
At IMRF, we REAACH for our goals
IMRF's values guide us to reach our mission, vision, and goals. They define how we work and shape the expectations we have for our organization. Through our commitment to these values, our members, employers, and stakeholders across Illinois and beyond can feel confident in IMRF as a world-class pension provider.
Responsible for the prudent management of IMRF’s retirement assets, our eight-member Board of Trustees includes:
- Four Executive Trustees elected by participating units of government
- Three Employee Trustees elected by participating IMRF members
- One Annuitant Trustee elected by IMRF annuitants
- The Government Finance Officers Association (GFOA) awarded IMRF its prestigious "Triple Crown" Award for receiving all three GFOA Certificates of Achievement for Excellence in Financial Reporting for the Annual Comprehensive Financial Report (ACFR), Popular Annual Financial Report (PAFR), and Budget.
- Tom Kuehne, who has served as Trustee since 2014, was elected to his second term as Executive Trustee. His second term will run from January 1, 2023, through December 31, 2027.
- Seven bills that affect IMRF passed the General Assembly in 2022: Public Act 102-0849 creates an exemption for employers from the Accelerated Payment requirements that arise due to workers’ compensation payments. Public Act 102-0850 aligns the suggested employer resolution to adopt an Early Retirement Incentive with the statutory language regarding limitations on ERI retirees returning to work for an IMRF employer. Public Act 102-0943 requires all employers to make at least 20 days of paid leave available annually to any employee trustee of IMRF in their employment. It also requires the Fund to reimburse these employers for the actual cost of hiring a substitute employee during such leaves (currently requires reimbursement only of the trustee's actual salary). Public Law No. 117-328 (Federal) in the provisions applicable to IMRF, increases the age at which inactive members must begin receiving distributions from the plan from the current age 72 to 75. This change will occur incrementally over the next 10 years. It also exempts public safety employees from the 10% early withdrawal penalty upon the earlier of age 50 or 25 years of service credit earned in that capacity regardless of age. It also expands the definition of “public safety employees” to include correctional officers and certain forensic employees. There were also three new laws that opened four windows to transfer service credit between IMRF, downstate police pension funds, and SERS. All of these windows have since closed, and applications can no longer be accepted
- IMRF continued progress on a multi-year effort to update its technology platform. The project is expected to be completed in 2023.
2022 Pension Dollar
Pensions are a shared responsibility. Every dollar paid to IMRF retirees comes from three sources: investment earnings, employers, and members. View Full Size Pension Dollar.
