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F Y2019 Budg e t Re q ue st Pre se nte d to Governor Kim Reynolds - PowerPoint PPT Presentation

Dec 17, 2023 •459 likes •672 views

F Y2019 Budg e t Re q ue st Pre se nte d to Governor Kim Reynolds & Lt. Governor Adam Gregg Donna M. Mue lle r, CE O I OWA PUBL I C E MPL OYE E S RE T I RE ME NT SYST E M No ve mb e r 22, 2017 Our Missio n Administer

  1. F Y2019 Budg e t Re q ue st Pre se nte d to Governor Kim Reynolds & Lt. Governor Adam Gregg Donna M. Mue lle r, CE O I OWA PUBL I C E MPL OYE E S’ RE T I RE ME NT SYST E M No ve mb e r 22, 2017

  2. Our Missio n Administer a cost-efficient retirement plan that provides lifetime pension payments to public employees and serves to attract and retain a quality workforce. 2

  3. T a b le o f Org a niza tio n 3

  4. 355,000 Me mb e rs Re g ula r me mb e rs ma ke up 95% Spe c ia l Se rvic e me mb e rs ma ke up 5% As o f 6/ 30/ 2017 4

  5. Be ne fit Pa yme nts b y Co unty Ove r 117,000 • r e tir e e s $2 billion • paid in be ne fits $1.7 billion • paid to Iowans As o f 6/ 30/ 2017 5

  6. Pre fund – No t Pa y-a s-Yo u-Go Contributions + Inve stme nts = Be ne fits + E xpe nse s Inve stme nt e ar nings c o ntr ibute 70% o f IPE RS be ne fits paid. 6

  7. I nve stme nt Pe rfo rma nc e Return on market value of assets of 11.7% Eliminated the unrecognized investment • loss of $707 million in last year’s valuation (actuarial value exceeded market value) • Resulted in a $307 million unrecognized investment gain this year, i.e., market value exceeds actuarial value 7

  8. I nve stme nt Pe rfo rma nc e Histo ry Annua lize d R e tur ns *Ac tua r ia l Assume d Inve stme nt R e tur n 1-Year 11.7% 1953–1993 6.50% 10-Year 5.89% 1994–1995 6.75% 1996–2016 7.50% 20-Year 7.45% 2017–present 7.0% 30-Year 8.65% For periods ending June 30 8

  9. Cha ng e s to E c o no mic Assumptio ns IPERS’ Investment Board adopted new economic assumptions, following an experience study conducted earlier this year. • Inflation lowered from 3.0% to 2.6% • Investment return lowered from 7.5% to 7.0% • Interest on member accounts decreased from 3.75% to 3.50% • General wage growth assumption decreased from 4.00% to 3.25% • Payroll growth assumption was lowered from 4.00% to 3.25% Demographic assumptions will be reviewed in FY2018. 9

  10. K e y F unding Me a sure me nts F Y2017  Ratio of actuarial assets to actuarial liabilities 81.4% (down from 83.9%)  Unfunded actuarial liability (UAL) increased by $1.4 billion, largely because of the change in investment return rate Deferred investment gain of $307 million  10

  11. Co ntrib utio n Ra te s vs. Re q uire d 11

  12. Ca se Study Within I PE RS Historical Funded Ratios By Membership Class 12

  13. Co ntrib utio n Ra te s Membership Class Member Employer Total Regular 5.95% 8.93% 14.88% 7/1/13–6/30/18 6.29% 9.44% 15.73% 7/1/18 – 6/30/19 Sheriffs and Deputies 9.38% 9.38% 18.76% 7/1/17–6/30/18 9.76% 9.76% 19.52% 7/1/18 – 6/30/19 Protection Occupations 6.56% 9.84% 16.40% 7/1/16–6/30/18 6.81% 10.21% 17.02% 7/1/18 – 6/30/19 13

  14. T he I PE RS T rust F und In FY2017, the Trust Fund increased to $31 billion after paying $2 billion in benefits. 14

  15. e y GASB Me a sure me nts K $37.44 billion Total Pension Liability $31.78 billion Fiduciary Net Position $ 6.66 billion Net Pension Liability Ratio of Fiduciary Net Position 82.2% to Total Pension Liability 15

  16. Co nsiste nt L o w Co st IPERS’ total pension administration cost of $53 per active member and annuitant has remained significantly below its peer group cost of $103 . Sourc e : CE M Be nc hma rking I nc . 16

  17. Budg e t Appro pria tio n Re q ue st Summa ry • No General Funds requested. • IPERS administrative expenses are paid by the IPERS Trust Fund. • Pension administration system upgrade is underway. • FY2019 request: $17,988,567 and 88.13 FTE NO increase from FY2018 17

  18. F Y2019 Budg e t Appro pria tio n Re q ue st Service Category FTEs FY2019 Investment Management 10.06 $1,698,891 (Oversee investments and investment policy) Retirement Services 25.27 $4,052,147 (Paying benefits; service purchases; disability services) Member Services 20.68 $3,353,501 (Benefit education and estimates; retirement counseling) Employer Relations & Data Management 13.00 $2,095,938 (Employer training; compliance reviews; employer reporting) Governance, Plan Design, and Financial Control 18.07 $3,074,044 (Legal compliance; administrative rules; internal auditing; actuarial services) Facility Maintenance 1.05 $1,020,000 Pension Administration Software System 0.00 $2,694,046 FY2019 appropriation 88.13 $17,988,567 FY2018 appropriation 88.13 $17,988,567 Increase/(Decrease) from FY2018 appropriation 0.00 $0.00 18

  19. I PE RS F un F a c ts 126 me mbe rs ove r the a g e of 100 • Provide d ove r 11,322 pre re tire me nt • c ounse ling se ssions in F Y2017 Re c e ive d ove r 84,380 phone c a lls • Pre pa re d more tha n 34,115 e stima te s • We lc ome d 6,360 re tire e s • 19

  20. Co nta c t Us For additional information, visit our website at www.ipers.org E-mail: ceo@ipers.org Phone: 515-281-0070 Toll-free: 1-800-622-3849 20

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