The estimated 2016 investment return for IMRF is 7.71%. This return translates into investment income of approximately $2.584 billion, after investment and administrative expenses.
Member and annuitant reserves will be credited approximately $1.903 billion, as required by the Illinois Pension Code. Employer reserve balances will be credited with the balance, approximately $461.8 million. On average, employer accounts will be credited approximately 7.32% of interest and residual investment income on their beginning of the year employer reserve balance. This credit reflects the fact that, as a sponsor of a defined benefit plan, IMRF employers share all the risks and rewards of investment returns.
Beginning in April 2017, IMRF will conduct a series of Employer Rate Meetings throughout the state. These meetings will further explain the impact of year-end financial and actuarial data on IMRF, its estimated impact on individual employers, and current topics impacting IMRF and pension plans in general. In May, IMRF will offer an online webinar presentation of this information.
A calendar of dates, locations, and registration information for the Rate Meetings and the webinar will be available on IMRF's website, www.imrf.org, by mid-February. The calendar and registration information will also appear in upcoming editions of Employer Digest.