Highlights of the November 2024 Board Meeting

December 11, 2024

Board hears status update on IMRF operations

IMRF staff updated the Board on improvements to operations since replacing the secure websites and the behind-the-scenes technology used to administer the pension system.

Staff highlighted many strategic successes since the transition to the new systems in March. Some of these successes include:

• Collecting all employer contributions (more than $822.6 million).
• Delivering all benefit payments (more than $2.1 billion).
• Exceeding retirement claims processing goals for the last five consecutive months.
• Answering more than 17,000 calls, returning more than 15,000 emails, and reducing call hold times by 49% since September.
• Reducing the hold time for web help and general changes to member information to six minutes.

More progress must be made, staff said, and the goal to normalize customer service levels by year-end remains in place.

Board approves 2025 final rates

The Board approved IMRF final employer contribution rates for the 2025 calendar year. The rates, which are unique to each IMRF employer, are expressed as a percentage of payroll. The average employer contribution rate for the Regular Plan for 2025 will be 6.99% of payroll, as compared to 6.65% in 2024.

IMRF employers may access their 2025 Final Rate in Employer Access. Review these resources to learn how to locate your rate information in Employer Access.

Board discusses alternative approach to setting assumed rate of return

IMRF Actuary GRS presented options for a process - originally proposed by Board President Peter Stefan - to implement a more dynamic and flexible assumed rate of investment return (ARR). The ARR impacts employer contribution rates. When actual returns exceed the ARR, employer contribution rates decrease in future years; and when actual returns fall below the ARR, rates increase in future years (all else being equal). So, it is important that the ARR be as accurate a projection of IMRF's future actual returns as possible. For details on the potential new process, review the presentation GRS made to the Board here. The Trustees had different opinions on the potential new process and provided feedback for the actuaries to incorporate. The Board will discuss the matter again at its December meeting.

Trustee Stefan appointed to fill pending vacancy

The Board voted to appoint Peter Stefan to fill a pending Executive Trustee vacancy. The position will become vacant effective January 1, 2025, when Executive Trustee Sue Stanish retires. At that time, current Employee Trustee Stefan will move into Stanish's vacant Executive Trustee position. Stefan's appointment will expire after December 31, 2025. In the fall of 2025, IMRF will administer an Executive Trustee election, and the winner will serve the remainder of Stanish's term, which ends December 31, 2028. The Board is currently considering candidates to fill Stefan's Employee Trustee seat.

Staff provides quarterly update on 2023-2025 Strategic Plan's implementation

Staff updated the Board on activities undertaken during the third quarter in support of the 2023-2025 Strategic Plan. Key successes within each of the Strategic Plan's Key Result Areas (KRAs) included:

Financial Health

IMRF staff and Actuary GRS investigated and developed options for a process to implement a dynamic and flexible rate of return assumption.

Customer Engagement

Online Member and Employer Access Learning Centers were updated with new procedures, videos, and FAQs to assist customers' ongoing transition to the new Member and Employer Access websites.

Workforce Engagement

Each IMRF department developed action plans for 2025 to support and enhance employee engagement, and ultimately, performance.

Operational Excellence

Developed new digital data dashboards to support organizational management and improve customer service.

New units of government join IMRF

The Board approved the participation of the following new employers:

• City of Park City
• LakeComm (Lake Consolidated Emergency Communications)
• Southern Will County Co-op for Special Education

Next Board meeting

The next regular meeting of the IMRF Board of Trustees will be December 20 at 9 AM.

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