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County projects higher employer pension costs; finance staff flags IMRF rate increase
Summary
Finance staff reported a preliminary IMRF employer-rate increase and higher budget pressure for the county general fund; Social Security/Medicare rates remain unchanged while insurance trust reinsurance premiums are expected to rise.
Melissa, county finance staff, told the finance committee Thursday that preliminary retirement contribution figures from the Illinois Municipal Retirement Fund (IMRF) show a material uptick in the employer rate that will increase county costs in fiscal 2026.
Melissa said the IMRF preliminary employer rate for one plan component (SLAP) rose from 12.18% in 2025 to a preliminary 16.53% for 2026; she said the regular IMRF rate is projected to change only slightly. She asked the committee to note that the IMRF employer-rate projection is preliminary and that she has asked IMRF for confirmation because the county has not seen such an increase in recent years.
Why it matters: employer pension and payroll-related costs are allocated across multiple county funds (general fund, highway, nursing home, etc.). A sizable increase in IMRF employer contribution rates will raise the county’s payroll burden and could affect departmental budgets, the finance director said.
Other budget items reported: - Social Security and Medicare: Melissa said the federal percentages have not changed (the combined employer/employee rate remains at the federal level), so projections for those lines change only as payroll levels change. - Insurance trust: staff reported increases in estimated administrative and reinsurance costs driven by broker projections; Melissa said final reinsurance figures will not be available until November and that she will work with Stephanie to update budgets if necessary.
Committee discussion and next steps: Melissa said county-wide payroll figures and retiree projections are driving specific departmental increases; for example, the general fund’s IMRF expense line is projected to rise noticeably because of higher wage and overtime calculations. She said she will continue to seek confirmation from IMRF and will return with any necessary budget adjustments later in the fall.
Ending: Finance staff will finalize IMRF and insurance-premium figures in time for the county’s November budget reviews and any required adjustments to departmental requests.
