IMRF is well- funded, fair

In his Aug. 21 Fence Post, David Ropinski from East Dundee criticized various Illinois pension funds, including IMRF. Since he didn't distinguish between these funds - IMRF is well-funded, but many are not - I thought it helpful to set the record straight on a couple of points.

IMRF, which represents approximately 182,000 municipal employees, is not a state pension, and is not related to local police, fire or teacher pensions. Dr. Alon P. Winnie, James R. Thompson, and school superintendents - whose pensions Ropinski believes are unfairly high - do not receive pensions from IMRF.

There are 93,298 other Illinois municipal workers who do receive pensions from IMRF. An average IMRF member retiring in 2009 had 20 years of service and receives a monthly benefit of $1,248. Importantly, there are another 181,380 municipal employees who perform valuable services for towns and villages across the state.

Individually managed 401(k) programs were never meant to be the sole source of an individual's retirement fund, are flawed and are much more expensive than defined benefit pensions. In fact, IMRF's total annual administrative cost to run our 2,900-plus funds is approximately one-third of one percent of assets. That's substantially less than what you are charged by most no-load index funds in your 401(k).

Further, IMRF is well over 80 percent funded. It is a reasonable pension system paying reasonable benefits.

Finally, it's critical to look at the average pensions that benefit a majority of the state's workers, not the exceptions. Defined benefit public pensions that work toward a 100 percent funding goal guarantee public workers a secure and fair retirement income at the most reasonable cost to taxpayers.

Louis W. Kosiba

Executive Director

IMRF

Oak Brook