General Memo 630


Feedback requested on IMRF Proposed Formal Funding Policy

October 31, 2012

At the September 28, 2012 Board Meeting, IMRF staff proposed the adoption of a formal funding policy.

The policy, which will formalize longstanding practices at IMRF, will help minimize confusion among IMRF employers following the release of new guidelines on accounting and reporting practices in Governmental Accounting Standards Board (GASB) Statement No. 68.

IMRF plans to continue to use the Annual Required Contribution (ARC) calculation embedded in GASB Statement No. 27 to determine employer contribution rates. The proposed approach is consistent with actuarial best practices, supports IMRF’s 100% funding goal, maintains intergenerational equity, and minimizes disruptions to employers.

Before this policy is formally adopted by the Board of Trustees, we would like to gather feedback from employers.

Please take a moment to review this proposed funding policy and provide us with any feedback no later than the end of the day on Wednesday, November 14, 2012. We also ask that you forward this message and the attached policy to your financial officers for their review.