2027 Death and Disability Rates Approved

The Board approved death and disability contribution rates for 2027.

The 2027 average death benefit contribution rate will slightly increase to 0.16% of employer payroll from 0.12% in 2027. Each employer rate is calculated based on the average age of its employees. The funds are used to pay death benefits for active members who die prior to retirement.

The 2027 disability benefit contribution rate will remain at 0.04% of employer payroll like in 2026. The rate is the same for all employers. The funds are used to pay temporary and total and permanent disability benefits.

IMRF's goal is to maintain a balance in the death benefit and disability benefit reserves equal to one year's total payments.

Executed annual review of funding policy and adopted layered amortization for all new liabilities as of 12/31/2025. 

Board Hears Update on 2025 Investment Successes

Investment staff and consultants reviewed the 4th Quarter Investment Performance Report. IMRF ended the fiscal year with total assets of $60.8 billion, an increase from $54.9 billion in December 2024. IMRF earned a gross return of 14.91% and a net return of 14.75%, which exceeded the 7.25% actuarial rate of return and ranked in the 21st percentile of peers.

Staff Provides Update on 2023-2025 Strategic Plan successes

Staff updated the Board on activities undertaken during the fourth 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

Executed annual review of funding policy and adopted layered amortization for all new liabilities as of December 31, 2026.

Customer Engagement

Made progress developing customer journey maps, which will support an end-to-end understanding of the customer experience at IMRF.

Operational Excellence

Successfully deployed a software update to IMRF's enterprise-wide pension administration system.

Workforce Engagement

Made substantial progress on multiple initiatives, including IMRF's project to relocate its Oak Brook headquarters.

Office Relocation Project Update

The Trustees heard an update on IMRF's project to relocate its main headquarters. After more than 30 years in its previous location, IMRF successfully moved operations to 800 Commerce in Oak Brook in January. The project came in on time, on budget, and with minimal disruption to customer service.

Next Board meeting

The next regularly scheduled board meeting will be held Friday, March 27, at 9 AM at IMRF's Oak Brook office.