2011 Employer Rate Meetings: 2010 investment return, its impact on employers, potential pension-related legislation, and other forces influencing IMRF
February 28, 2011
We encourage each Authorized Agent to share this memorandum
with your unit of government’s chief financial officer, other officials,
and governing body members.
This preliminary investment information is based on unaudited investment return data and projected actuarial information. Finalized information will be available in late April or early May 2011
The estimated 2010 investment return for IMRF is 13%. This return translates into investment income of approximately $3 billion.
Approximately $1.7 billion will be credited to employer reserve balances. On average, employer accounts will be credited approximately 26% on their beginning of the year employer reserve balance. These credits reflect the fact that, as a member of a defined benefit plan, IMRF employers share all the risks and rewards of investment returns.
The phase-in plan adopted by the IMRF Board of Trustees in 2009 will remain in effect for 2012 rate purposes.
2011 Employer Rate Meetings: beyond rates and returns
Beginning on April 19, 2011, IMRF will present a series of Employer Rate meetings throughout the state. At these meetings we will discuss the impact of year-end financial and actuarial data on IMRF as a whole and its estimated impact on individual employers.
However, at these meetings we will also discuss potential pension-related legislation that could impact IMRF as well as other forces influencing IMRF.
Register online by logging into your Employer Access account, clicking on "Find a Workshop," selecting Employer Rate Meeting, and clicking on "Find."
The meetings will take approximately an hour-and-a-half, consisting of both a formal presentation and a question and answer period. We encourage you, your chief financial officer, other officials, governing board members, and other interested parties from your employer to attend.
IMRF will also present the same information at two webinars in early May. Information on the webinars will be provided in a future Employer Digest email.
Register online by logging into your Employer Access account, clicking on "Find a Workshop," selecting Employer Rate meeting, and clicking on "Find."
Questions?
If you have any questions, please call an IMRF Member Services Representative at 1-800-ASK-IMRF (1-800-275-4673) 7:30 a.m. to 5:30 p.m., Monday through Friday, or send IMRF a Secure Electronic Message.