At the regular monthly meeting of the Glencoe Park District Board of Park Commissioners on December 13, 2011, the Board approved payment of the Park District’s Illinois Municipal Retirement Fund (IMRF) net pension obligation liability, which will save taxpayers approximately $27,000 in future pension costs over the next 20 years.
IMRF provides employees of local governments and school districts in Illinois with retirement, disability, and death benefits. Every dollar paid to IMRF employees comes from three sources: 60 cents from investment returns, 26 cents from IMRF employers, and 14 cents from IMRF members who contribute throughout their careers. In 2008, substantial investment losses significantly increased employer contribution amounts. To alleviate the effects of these losses on participating employers, in February 2009 the IMRF Board approved an optional phase-in contribution rate for employers. At that time, the Park District elected the phase-in rate for 2010 and 2011.
In January 2012, with a healthy fund balance, the Park District had the financial ability to pay off the net pension obligation liability, which totaled $54,535. Paying the liability in full at this time saves the District around $27,000 in interest that would have accrued over a period of twenty years. Starting January 2012, the Park District will now pay the higher Annual Required Contribution (ARC) rate to meet the current IMRF obligations.
If you have any questions, please contact Carol Mensinger at
cmensinger@glencoeparkdistrict.com.