Illinois Municipal Retirement Fund Employer Digest
January 31, 2014
In This Issue
General Memo 647: 2013 Investment Returns
2014 Maximum Wages
2014 Employer Rates
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This preliminary information is based on unaudited investment return data and projected actuarial information. Finalized information will be available in early May.

 

The estimated 2013 investment return for IMRF is 20.1%. This return translates into investment income of approximately $5.4 billion after investment and administrative expenses. Member and annuitant reserves will be credited approximately $1.5 billion as required by the Illinois Pension Code. Employer reserve balances will be credited with the balance, approximately $3.9 billion. 

 

On average, employer accounts will be credited approximately 52% of interest and residual investment income on their beginning of the year employer reserve balance.

 These credits reflect the fact that, as a sponsor of a defined benefit plan, IMRF employers share all the risks and rewards of investment returns.

 

Upcoming Employer Rate meetings

Beginning on April 21, 2014, IMRF will present a series of local rate meetings throughout the state. At these meetings we will discuss the impact of year-end financial and actuarial data on IMRF as a whole and its estimated impact on individual employers. We will also discuss other current topics impacting IMRF and pension plans in general. IMRF will also present the same information at a webinar in May.

 

Read more in General Memo 647

2014 maximum IMRF wages

Maximum wages for Tier 1 members   
Tier 1 member wages do not include compensation in excess of $260,000 (for 2014). Federal tax law limits the amount of wages that can be used for pension purposes. This limit applies to Tier 1 members who started IMRF participation after 1995. You do not withhold IMRF contributions nor report earnings for any wages that exceed the limit.

Maximum wages for Tier 2 members
Tier 2 member wages do not include compensation in excess of $110,631.26 (for 2014). You continue to report earnings over $110,631.26. But you do not withhold IMRF contributions for any wages that exceed this amount. IMRF will not accept contributions over this amount for Tier 2 members.

 

See more details in the full January 2014 Reminder.   

 

Reminder: 2014 employer rates

In November 2013, we provided all Authorized Agents with an Official Rate Notice for 2014. The Official Rate Notice gives a breakdown of your employer's 2014 rate (including early retirement incentive, if appropriate).
  • Retirement benefits: Each employer's rate is calculated separately, based upon actuarial costs.
  • Death benefits: Each employer's rate is calculated separately based on the average age of its employees.   
  • Disability benefits: All employers pay the same rate.   
  • Supplemental benefit payment (13th payment): The rate is fixed by statute and all employers pay the same rate.
Use your 2014 employer rate when reporting wages paid in January 2014. This month is the first month you will calculate employer contributions using your 2014 employer rate.

Your rate is displayed on your Web Wage Reporting electronic summary, and your contributions will be automatically calculated for you. The employer rate for 2014 is the same for Tier 1 and Tier 2.

For additional questions about your rate, please call IMRF's Employer Relations Supervisor,  Audrey Brown-Ryce, at (630) 706-4246, or Employer Account Analyst Corey Lockwood at (630) 706-4226.

 

See more details in the full January 2014 Reminder.   

 
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