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LEADERSHIP AGENDA

Operational Scan

ECONOMIC INDICATORS

DEPARTMENT PERFORMANCE

DEPARTMENT PERFORMANCE

Iowa Public Employees' Retirement System

Donna Mueller, Chief Executive Officer

Mission Statement:
Administer a cost-efficient retirement plan that provides lifetime pension payments to public employees and serves to attract and retain a quality workforce.

Measures:
IPERS investment return
IPERS investments meet actuarial assumed returns
IPERS service scores compared to other public pension systems
IPERS benefits are administered cost effectively
IPERS Trust Fund is invested cost effectively

MORE DEPARTMENT PERFORMANCE

  • Download PDF document  Performance Plan - How we measure our progress

  • Download PDF document Strategic Plan - How we plan for progress

  • Download PDF document Performance Report - How we report our progress

  • Department Home Page - Learn more about this department

Highlighted Measure:

Percent by which IPERS meets its total fund portfolio investment return objective (a passively managed benchmark comprised of indexes for each asset class within the Investment Board's target allocations). Measurement is taken twice a year on a rolling 10-year basis.

Data Source: IPERS

 

Updated 12/10/2015

GRAPH - IPERS Return on Investment

Why this is important:
Provide effective investment of the IPERS Trust Fund to meet payments of current and future pension payments.

What we're doing about this:
IPERS seeks to add value over market returns in order to help reduce the unfunded liability of the System. IPERS Board and Staff continue to evaluate different approaches in terms of management and types of investments. Staff is implementing a risk management program that will keep the focus on funding the pension liabilities and seek to add value by preserving value in bad markets - when added value matters the most.

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Highlighted Measure:

Percent by which IPERS investment return, on a rolling 10 year basis, meets the 7.5% assumed actuarial annual rate of interest.

Data Source: IPERS

 

Updated 12/10/2015

GRAPH - Percent of IPERS Investment REturn that Earns 7.5%

Why this is important:
The actuarial soundness of IPERS fund is very important as it ultimately describes whether IPERS has sufficient funds to pay all of the promised benefits.


What we're doing about this:
While the impact of the Great Recession is still evident in the investment returns, IPERS longer-term investment performance has usually exceeded actuarial assumptions. IPERS' annualized investment return of 10.6% for the five-year period ended June 30, 2015 far exceeds the actuarial investment return assumption of 7.5%. While forecasts of market returns for the next ten years are expected to be low by comparison to recent history, IPERS will continue to invest in a conservative and practical manner - attempting to maximize returns on risk within a disciplined risk budgeting framework.

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Highlighted Measure:

IPERS' quality of service score as ranked against peer public pension systems within the benchmarking services compiled by Cost Effectiveness Measurement, Inc.

Data Source: Cost Effectiveness Measurement, Inc.

2016 data available March 2017

Updated 04/19/2016

GRAPH - Overall Service Score as Ranked Against Peer Public Pension Systems

Why this is important:
Since IPERS has no peers in state government, it is important to benchmark services against those provided by other public employee retirement systems. The CEM benchmarking effort involves approximately 72 leading pension systems in the U.S., Canada, Europe and Australia. CEM measures quality of service delivery in fourteen service categories ranging from communication, counseling, payments, and service to employers. In nine of the fourteen service categories, IPERS' service measures were greater than the per average. IPERS uses the benchmarking analysis in each of the measurable service areas to improve services to employees and employers. The overall "quality of service" score of 80 was close to the peer median score of 81. Over the past nine years, IPERS' quality of service scores have been consistently at the score of 80-83.


What we're doing about this:
Results from the benchmarking study is being used to improve the quality of services and the efficiency of services by applying innovative approaches and best practices.

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Highlighted Measure:

Percent by which IPERS benefit administrative costs are less than peer average administrative costs as measured by CEM per active member and annuitant.

Data Source: IPERS

NOTE: The larger the percentage is that IPERS is away from the median cost of other peer public pension funds the better.

2016 data available March 2017

Updated 04/19/2016

GRAPH - IPERS Benefits are Administered Cost Effectively

Why this is important:
It is important to strive to control costs but still deliver the highest level of service possible. For the fourteenth year in a row, IPERS succeeded in keeping costs low. IPERS' cost in 2015 was $45 per active and retired member. This compares to the peer median cost of $95 per active and retired member in 2015, which is up from $54 in 2014.


What we're doing about this:
The data clearly show that IPERS has been successful in this area as we are the lowest cost system in our CEM peer group of public retirement systems.

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Highlighted Measure:

Percent of total fund market value spent on investment administrative costs.

Data Source: IPERS

 

Updated 12/10/2015

 

GRAPH - IPERS Investment Administrative Costs

Why this is important:
It is important to continuously strive to control investment management costs but still seek the highest possible return on our investments.


What we're doing about this:
IPERS investment costs have remained fairly steady over time, and IPERS is considered to be a "low cost" fund by CEM Benchmarking, Inc. given the complexity of the IPERS investment program. While low costs are an objective, IPERS will utilize higher cost, less liquid investment strategies, such as private equity, real estate, and timberland investments, when it is believed that such strategies will improve the long-term risk-adjusted return on the investment portfolio. IPERS continues to evaluate the effectiveness of its investment program and improve it through a more robust risk management program.

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