IMRF invites you to read our 2023 Popular Annual Financial Report (PAFR). Derived from IMRF’s 2023 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 2023 PAFR.
Fiduciary Net Position
IMRF's fiduciary net position—total assets and deferred outflow of resources minus liabilities and deferred inflow of resources—was $52.6 billion as of December 31, 2023. That was an increase of $4.4 billion, or about 9.2%, from 2022. This increase reflects positive investment returns in 2023.
With positive gains in 2023, IMRF’s financial position remains strong. With 51.0% growth from 2014 - 2023, 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, 2023, IMRF was 96.6% 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 2014.
Investments
IMRF’s investment portfolio was valued at $52.1 billion on December 31, 2023.
The portfolio’s 2023 rate of return was 13.2% after investment management fees. This corresponds to investment gains of $6.3 billion.
The 2023 financial market was up compared to the 2022 market. The 2023 financial markets increased over 2022 markets impacted by inflation and the Federal Reserve’s response to it, unrest in the Middle East, the debt ceiling struggle causing a possible government shutdown, near steady unemployment, job growth, higher gasoline prices, and stronger consumer spending impacted the economy. The Federal Reserve’s raising of interest rates to combat inflation appeared to work to tamp down inflation from almost 9.0% to 3.4% for the year.
In 2023, IMRF’s domestic equity portfolio increased 23.1% after fees, and the international equity portfolio increased 19.2% after fees. The fixed income portfolio increased 7.5% after fees. Conversely, IMRF’s real estate portfolio decreased (4.2)% after fees, and the alternative investments portfolio returned 2.6% after fees in 2023.
IMRF’s long-term goal is to earn an annualized total fund return of 7.25%, after investment management fees. IMRF achieved this goal in 2023 as well as over longer time horizons. The bar chart below shows IMRF’s returns over the past 42 years, compared to the 7.25% goal.
2023 Target vs. Actual Asset Allocation
The IMRF Board of Trustees revised the target asset allocation for the IMRF investment portfolio in 2023. 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, 2023, 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 2023 was $7.5 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 $540 million in 2023.
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 $653 million in 2023.
Member and employer contributions are invested, and IMRF investment returns have historically accounted for the majority of IMRF’s revenue. In 2023, IMRF investments gained $6.3 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 2023, IMRF’s total expenses equaled about $3.1 billion.
Total expenses increased by about 5.3% or $156 million from 2022 to 2023.
Members and Employers
IMRF experienced growth in members and an increase in employers in 2023.
Members
Over the last three years, IMRF members increased by 7.7%, totaling 492,959 active members, inactive members, and retirees in 2023.
| Members | 2023 | 2022 | 2021 |
|---|---|---|---|
| Active | 181,205 | 175,224 | 172,310 |
| Inactive | 157,200 | 148,128 | 138,391 |
| Retirees | 154,554 | 151,568 | 147,134 |
| Grand Total | 492,959 | 474,920 | 457,835 |
The typical IMRF retiree receives a modest benefit, earned after decades of public service. In 2023, the majority of IMRF’s retirees received an annual pension benefit of just over $24,000.
| Annual Pension Amount | Annuitants |
|---|---|
| Under $1,200 | 6,059 |
| $1,200 to under $3,000 | 14,138 |
| $3,000 to under $6,000 | 24,845 |
| $6,000 to under $9,000 | 19,747 |
| $9,000 to under $12,000 | 15,198 |
| $12,000 to under $24,000 | 34,901 |
| $24,000 to under $36,000 | 16,275 |
| $36,000 to under $48,000 | 9,262 |
| $48,000 to under $60,000 | 5,534 |
| $60,000 to under $72,000 | 3,425 |
| $72,000 and over | 4,765 |
Employers
The Illinois Pension Code specifies the units of government required to participate in IMRF and those that may elect to join. In 2023, 3,045 units of government (employers) participated in IMRF, compared to 2,976 in 2014.
| Calendar Year End | Cities | Villages | Counties | School Districts | Townships | Other | Total |
|---|---|---|---|---|---|---|---|
| 2023 | 263 | 431 | 101 | 850 | 485 | 915 | 3,045 |
| 2014 | 258 | 414 | 101 | 855 | 478 | 870 | 2,976 |
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.
- Sue Stanish, who has served as Trustee since 2014, was elected to her third term as Executive Trustee. Her third term will run from January 1, 2024, through December 31, 2028.
- Douglas Cycholl was elected as the Employee Trustee. His five-year term will run from January 1, 2024, through December 31, 2028.
- Two bills that affect IMRF passed the General Assembly in 2023: Public Act 103-0464 had a number of impacts on IMRF. First, it requires all new IMRF Authorized Agents to complete an IMRF-provided training course within three months of appointment.. Also, it allows trustees who change jobs within a Board term to remain on the Board as long as there is no break in service, and they continue to meet all eligibility requirements in the new job. In addition, the Public Act creates additional exemptions to what IMRF calls the Accelerated Payment, which requires employers to pay the employer portion of certain pension cost increases on a faster schedule than the remaining portion. The law also makes two technical changes/corrections to the Pension Code. Public Act 103-0110 adds Regional Offices of Education to the list of employers for which members are not limited to the final employer for the use of unused, unpaid sick leave effective June 29, 2023.
- IMRF finalized plans to prepare to launch its new technology platform in the first quarter of 2024.
2023 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.
