1999 IMRF Comprehensive Annual Financial Report

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Derivation of Experience Gain (Loss)Type of Risk Area 1999 1998Risks Related to Assumptionsin millionsActuarial SectionEconomic Risk AreasInvestment Return $962.1 $515.7Pay Increases 5.5 (69.9)Demographic Risk AreasService Retirements 6.8 37.8Early Retirements (5.1) (8.7)Vested Deferred Retirements (14.6) 37.8Death and Survivor Benefits 0.6 7.7Disability Benefits 6.4 5.7Terminated with Refund (21.1) 10.5Risks Not Related to Assumptions (168.1)* (197.0)Total Gain (or Loss) During Year $758.9 $318.6Regular actuarial valuations give information about the composite change in unfunded actuarial accrued liabilities—whether or not the liabilities are increasing or decreasing and by how much. The objective of a gain and lossanalysis is to determine the portion of the change in actuarial condition (unfunded actuarial accrued liabilities)attributable to each risk area. The fact that actual experience differs from assumed experience is to be expected—the future cannot be predicted with 100 percent precision. The economic risk areas (investment return and payincreases) are volatile. It is assumed that gains and losses will be in balance over a period of years, but sizableyear-to-year fluctuations are common.*Including $166.6 million from experience studyIllinois Municipal Retirement Fund 59
Actuarial SectionSummary of BenefitsThis is a brief plan description of IMRF benefits. Additional conditions and restrictions may apply. A completedescription is found in Article 7 of the Illinois Pension CodeGeneralIMRF serves more than 2,700 employers including cities, villages, counties, school districts, townships and variousspecial districts, such as parks, forest preserves and sanitary districts. Each employer builds up an account to providefuture benefits for its own employees.Employees of these employers are required to participate if they work in an IMRF qualified position. An IMRFqualified position is one that will equal or exceed the employer’s annual hourly standard; the standard is either 600or 1,000 hours a year.IMRF has three benefit plans. The Sheriff ’s Law Enforcement Personnel (SLEP) plan is for sheriffs and deputysheriffs. Forest preserve districts may adopt the SLEP plan for their law enforcement personnel. Counties mayadopt the Elected County Official (ECO) plan for their elected officials. After a county has adopted the ECOplan, participation is optional for the elected officials of that county.Both the employee (member) and the employer contribute toward the retirement benefits. Members contribute apercentage of their salary. The percentage depends on the plan in which the member participates. Regular memberscontribute 4.5 percent, SLEP members contribute 6.5 percent, and ECO plan members contribute 7.5 percent.Employer contributions are actuarially calculated for each employer. Employers pay most of of the member’s andsurvivor’s pension cost and all of the cost for death and disability benefits.VestingMembers are vested for pension benefits when they have at least eight years of service credit. SLEP members arevested for a SLEP pension when they have at least 20 years of SLEP service credit. SLEP members with more thaneight years of service but less than 20 years of SLEP service will receive a Regular pension.RefundsNon-vested members who stop working in an IMRF qualified position can receive a lump sum refund of theirIMRF contributions. Vested members can receive a lump sum refund of their IMRF contributions if they are notretirement age or they may leave the contributions with IMRF until they reach retirement age.Members who retire without an eligible spouse (married to the member at least one year before the memberterminates IMRF participation), will receive a refund of their surviving spouse contributions with interest.If upon a member’s death all of the member contributions were not paid as a refund or pension, the beneficiarywill receive the remainder of the IMRF contributions, with interest.Pension CalculationsA Regular IMRF pension is:◆ 1-2/3 percent of the final rate of earnings for each of the first 15 years of service credit, plus◆ 2 percent for each year of service credit in excess of 15 years.The maximum pension at retirement cannot exceed 75 percent of the final rate of earnings.A SLEP pension is:◆ 2-1/2 percent of the final rate of earnings for each of the first 20 years of service, plus◆ 2 percent for each year of service between 20 and 30 years of service, plus◆ 1 percent of the final rate of earnings for each year of service credit in excess of 30 years.The maximum pension at retirement cannot exceed 75 percent of the final rate of earnings.60 Illinois Municipal Retirement Fund
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Illinois MunicipalRetirement Fund19
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Table of ContentsIntroductionBoard
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Board of TrusteesHeidi BaxterEmploy
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Certificate of Achievement7 Illinoi
Page 9 and 10: IntroductionThe increase in member
Page 11 and 12: Introductiond. Tax Deferred Payroll
Page 13 and 14: IntroductionReports to MembershipIM
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Page 17 and 18: Financial Section16 Illinois Munici
Page 19 and 20: Financial SectionExhibit BStatement
Page 21 and 22: Financial SectionEmployers must enr
Page 23 and 24: Financial SectionC. Cash1999 1998Ca
Page 25 and 26: Financial SectionInvestments, at fa
Page 27 and 28: Financial Section4. DerivativesIMRF
Page 29 and 30: Financial Section2. Fixed AssetsFix
Page 31 and 32: Financial SectionNotes to Required
Page 35 and 36: Investments Section34 Illinois Muni
Page 37 and 38: Investments Section36 Illinois Muni
Page 39 and 40: Investments SectionMaster TrusteeTh
Page 41 and 42: Investments SectionInvestment Objec
Page 43 and 44: Investments Section5. Emerging mark
Page 45 and 46: Investments SectionReturns by Asset
Page 47 and 48: Investments SectionSchedule IIAsset
Page 49 and 50: Investments SectionSchedule of 1999
Page 51 and 52: Investments SectionSchedule of Inve
Page 53 and 54: Actuarial Section52 Illinois Munici
Page 55 and 56: Actuarial Section54 Illinois Munici
Page 57 and 58: Actuarial SectionTable IIChanges in
Page 59: Actuarial SectionActuarial Balance
Page 63 and 64: Actuarial SectionSummary of Benefit
Page 67 and 68: Table VIRevenues by sourceLast ten
Page 69 and 70: Statistical SectionTable IXAverage
Page 71 and 72: Statistical SectionTable XIIPartici
Page 73 and 74: Statistical SectionTable XVAnnuitan
Page 75: IMRF StaffOperations & PlanningDan
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1999 IMRF Comprehensive Annual Financial Report

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