IMRF Employer Rates

For IMRF employers, the IMRF released to each of you a Preliminary Phase-In Notice. The letter that is addressed to the Alliance Library System is dated March 3, 2009. If you did not receive the notice, you can access it via the IMRF Webpage. This is a preliminary estimate.

According to the IMRF, "In mid-April you will be provided the preliminary rate notice, showing the actuarially calculated rate (ARC), and a confirmation of the phase-in contribution rate. At that time, employers will be given the option to contribute the phase-in rate, the higher ARC rate, or some rate between the two. Employers who choose a rate less than the ARC rate will be required by generally accepted accounting principles to record a net pension obligation on its books in 2010."

For information on why the IMRF is using a lower phase-in rate, see my earlier post here.

The choice is to pay now by using the ARC, or pay more over the long term by using the phase-in rate. Each library will need to make that decision based on its funding and levy situation.