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* Just about everyone, from Gov. Pritzker on down, has said that consolidating the 600+ local first responder pension funds would be a good thing. It would save on administrative costs and perhaps improve investment returns. But the group that represents those funds is, unsurprisingly, opposed. Press release…
Illinois Public Pension Fund Association (IPPFA) President James McNamee issued the following statement regarding the imminent release of the Governor’s Pension Consolidation Task Force report. The report will soon be available for review, and McNamee is urging careful study of each of the report’s recommendations before any action is taken:
“We caution against a rush to push through any possible changes in the local control of police and fire pension fund assets based on this report. Pension fund board members are local volunteers who are responsible for the management of their local funds and the setting and awarding of benefits to police officers and firefighters who have earned those benefits in their communities. This gives pension recipients a direct link to the people managing their money. Any suggestion of moving that control to the state needs to be thoroughly vetted, studied, and absolutely must include input from the police officers and firefighters whose hard-earned money is at stake.
“The IPPFA has commissioned independent, outside studies that have shown that the downstate police and fire pension funds are well managed and meet or exceed their investment benchmarks, so if it isn’t broken, why fix it? What does need fixing is a key restriction for local police and fire pension funds with less than $10 million in assets that limits their investment power. If that restriction were eased, and the police and fire pension funds could operate by the same rules as the Illinois Municipal Retirement Fund, the higher returns they could generate means it wouldn’t cost taxpayers extra to keep these pension funds healthy.”
Those “local volunteers” are required to complete 32 hours of training every year. Here’s one session to be held October 1-4 at a popular Wisconsin resort…
For over 30 years the IPPFA has offered Public Pension Trustees the best and latest in trustee training. With the recent far reaching changes in pension law and with the difficult challenges yet to come, the IPPFA strives to prepare pension trustees for the future. Please join us for training in Ethics, Investment Procedures, Fiduciary Responsibilities, Legal and Legislative Updates, and much, much more and all with nationally renowned speakers.
The Trustee Workshop will be offered on Tuesday, October 1st. It is designed for those trustees that need a refresher or for those who are new to their board. Additionally, the Heroes Family Fund Charity Golf Outing will be held on October 1st, before the conference.
After a busy day attending the conference, enjoy one of the many recreational facilities the Grand Geneva has to offer or dine, relax, and network at one of the several restaurants and lounges on-site. Need to get out? Drive less than 10 minutes to one of Downtown Lake Geneva’s many restaurants.
Pretty sweet, especially if your expenses and time are being reimbursed by your local government.
posted by Rich Miller
Tuesday, Sep 24, 19 @ 2:31 pm
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==Pension fund board members are local volunteers==
Talk about proving a point.
Comment by Jibba Tuesday, Sep 24, 19 @ 2:38 pm
Great opportunity for investment industry sharks to wine and dine, and woo with sponsorships to tout their high fee services.
I’m sure they are against consolidation, too, and would like to be the ones to keep educating the “local volunteers” about how to invest.
Comment by Moe Berg Tuesday, Sep 24, 19 @ 2:50 pm
Q: i wonder who would volunteer to do
something like serve on a local pension board?
A: someone who has an interest in making sure the pension payouts are lucrative and beneficial to the pensioners.
these little pension boards are always at odds with DOI and asking for special policy memos and administrative decisions that allow them to skirt the Illinois Pension Code. they’ve never seen a double dip they didn’t like. these boards serve the exact opposite purpose they were intended to serve
Comment by Merica Tuesday, Sep 24, 19 @ 3:06 pm
Stop this ” imrf” talk. Sure they’re divided but only because the law doesnt allow those towns to skip paying. Sounds great but ask those town managers how troubling it is to fund a city budgetcwgen the bulk of your money goes to Imrf and leaves nothing else. The state has the money to pay pensions and then some. But what do you want to cut..that’s how imrf towns have to operate. They could raise taxes again I guess.
Comment by senseless Tuesday, Sep 24, 19 @ 3:07 pm
Sorry, funded, not divided
Comment by Senseless Tuesday, Sep 24, 19 @ 3:08 pm
= Sure they’re divided but only because the law doesnt allow those towns to skip paying. =
Good! That’s (part of) why IMRF is the only major public pension fund in Illinois that’s not severely underfunded.
Comment by cover Tuesday, Sep 24, 19 @ 3:10 pm
Small town financial advisors stand to suffer with consolidation. As for pension Boards they control who the advisors are so they hold the power if you know what I mean. Pressure to hire local and perhaps friends of friend is very common
Comment by Donnie Elgin Tuesday, Sep 24, 19 @ 3:17 pm
Illinois Pension Fund Association going annually to Wisconsin for years to train trustees, something wrong with holding event in Illinois? 33 million dollars in annual savings from investment costs to taxpayers, a no brainer, yes to consolidating the 650 individual pension funds!
Comment by Jerry Bennett/papa mayor Tuesday, Sep 24, 19 @ 3:18 pm
I spend more than 32 hours a year on Morningstar (401a and 457 plans) and I have to make my own coffee. *shrugs*
Comment by downstateR Tuesday, Sep 24, 19 @ 3:19 pm
Consolidate each municipal fire and police pension into one “safety” pension for that municipality. That keeps control local (if that actually is a problem) and cuts down on admin costs.
If we can’t get locals to combine their fire and police pensions (and there might be push back there), we’ll never be able to agree on a state-wide system.
Comment by City Zen Tuesday, Sep 24, 19 @ 3:28 pm
I’m shocked. A guy whose livlihood is tied to independent pension funds is opposed to the consolidation of said pension funds.
Comment by TominChicago Tuesday, Sep 24, 19 @ 3:48 pm
The training is actually 16 hours annually but 32 hours the first year.
I bet the IMRF or TRS officials receive less annual training than that and are responsible for overseeing far more funds.
Comment by Jake From Elwood Tuesday, Sep 24, 19 @ 3:50 pm
So if it costs taxpayers either $485 or $895, not including accommodations at the Grand Geneva Resort, just to send someone to IPPFA’s little golf outing - training shindig, then where does the 4 grand from the “Name Badge Sponsor” go?
Comment by Dance Band on the Titanic Tuesday, Sep 24, 19 @ 3:56 pm
You would think they would at least hold training sessions in Illinois.
Comment by Nanker Phelge Tuesday, Sep 24, 19 @ 4:08 pm
“Rush to consolidate “, Illinois Mayors brought consolidation to the GA back in 2007. If we could have succeeded, under the investment managers with IMRF, those pension funds would have increased in value by over 25% based on the last 12 years of investment history of IMRF. We have a Governor who truly understands economics and has the political will and courage to get this done, and we thank him!!
Comment by Papa mayor Tuesday, Sep 24, 19 @ 4:14 pm
I don’t even know why these municipalities and fire protection districts would even want to manage their own pension funds. It seems like a very tedious, laborious service.
Comment by Just Observing Tuesday, Sep 24, 19 @ 4:20 pm
==how troubling it is to fund a city budget when the bulk of your money goes to IMRF==
So you’re saying you have to tax residents at the proper level and pay for services rather than burden the next generation with crippling debt? /s
Comment by Jocko Tuesday, Sep 24, 19 @ 4:37 pm
I am sure I have said it a dozen times on here that there is a whole industry to protect in keeping the status quo. Proof. After your consultant takes you golfing for free during your stay at Lake Geneva on someone else’s dime, are you going to go back to your community as a volunteer board member/police officer or firefighter and advocate for consolidation?
Comment by Shemp Tuesday, Sep 24, 19 @ 4:49 pm
If they pass the consolidation, this association will cease to exist. It’s funded by pension money. That alone should be worth some savings.
Comment by Thomas Paine Tuesday, Sep 24, 19 @ 4:51 pm
===Stop this ” imrf” talk. Sure they’re divided but only because the law doesnt allow those towns to skip paying. Sounds great but ask those town managers how troubling it is to fund a city budgetcwgen the bulk of your money goes to Imrf and leaves nothing else. The state has the money to pay pensions and then some. But what do you want to cut..that’s how imrf towns have to operate. They could raise taxes again I guess.====
Um, most competent managers of cities would prefer IMRF over any other system. Do you have any idea where you’re coming from? IMRF costs are a fraction of local police and fire pensions (for several reasons from pay to years of service to disability, etc.) And IMRF is far, far from the bulk of any city’s budget.
Comment by Shemp Tuesday, Sep 24, 19 @ 4:54 pm
==those pension funds would have increased in value by over 25% based on the last 12 years of investment history of IMRF==
I’m all for efficiency and better administration, but I don’t believe this is true, these Funds still aren’t getting the IMRF revenue
Comment by The Original Name/Nickname/Anon Tuesday, Sep 24, 19 @ 4:55 pm
===I don’t even know why these municipalities and fire protection districts would even want to manage their own pension funds. It seems like a very tedious, laborious service.===
They don’t.
Comment by Shemp Tuesday, Sep 24, 19 @ 5:05 pm
= Sure they’re [funded] but only because the law doesnt allow those towns to skip paying. =
Hmm… might be onto something there.
Comment by Ebenezer Tuesday, Sep 24, 19 @ 5:06 pm
I can only speak for our fund which is municipal fire. I’ve been a board member for almost 17 years as both an active and now retired member. The IPPFA hosts only one of many seminars that trustees can attend to get their 16 (unpaid) hours of annual training. I personally attend the excellent Associated Firefighters of Illinois seminar which this year is in Normal. The AFFI changes locations each year, all in Illinois. Our fund pays the seminar cost, lodging if necessary, mileage and a small per diem. Trustees do not get paid to attend. As a fiduciary, I will support whatever plan does the most good for our fund. The rate of return is critical but not the only part of the equation. Local pension fund trustees are not some kind of hay seeds that some posters seem to insinuate.
Comment by Pension Board member Wednesday, Sep 25, 19 @ 7:26 am
-Pension Board member- is correct in that members are not paid to attend annual continuing education seminars where there they may obtain their annual “required” continuing education hours. As a former trustee of 19 years myself, I never once attended a seminar outside of Illinois and preferred to obtain my trustee training with local seminars. Unfortunately online training opportunities are extremely limited and that lack thereof was one of my reasons for stepping down.
Comment by TheGoodLieutenant Wednesday, Sep 25, 19 @ 9:32 am
Oh please Rich. What exactly are we supposed to glean from the fact they have their training at a resort in, lol, Geneva, Wisconsin. Volunteers, trustees, whatever you call them, they are locally elected as trustees to manage these pensions. They are not well-heeled finance firms or their lobbyists, nor are they a lobbying group like the IML which gets its dues from the public coffers.
If you think consolidation is go great, then great. But shouldnt the plan participants have some say?
Comment by LOLPLZ Wednesday, Sep 25, 19 @ 10:10 am