Board Resolution 2017-11-16

WHEREAS, section 7-198 of the Illinois Pension Code authorizes the Board of Trustees of the Illinois Municipal Retirement Fund to establish rules necessary or desirable for the efficient administration of the Fund, including the time and manner of making contributions by participating employers; and

WHEREAS, section 7-200 of the Illinois Pension Code gives the Board of Trustees the authority to carry on any reasonable activities necessary for carrying out the intent of the fund in accordance with the provisions of the Pension Code; and

WHEREAS, section 7-172(k) was added to the Illinois Pension Code by P.A. 97-0609, which contained a number of provisions designed to strengthen the sustainability of the fund and to discourage pension spiking and to provide for “Accelerated Payments” for pension costs; and

WHEREAS, the Board of Trustees adopted Resolution 2011-08-12, which established rules for the administration of P.A. 97-0609; and

WHEREAS, section 7-172(k) was amended by P.A. 100-411 to add an exemption from Accelerated Payments for earnings increases resulting from payments for unused vacation time, but only for payments for unused vacation time made in the final 3 months of the final rate of earnings period; and

WHEREAS, it is appropriate that the Board of Trustees amend Resolution 2011-08-12 to include in its administrative rule the exemption from Accelerated Payments added by P.A. 100-411 for earnings increases resulting from payments for unused vacation time, but only for payments for unused vacation time made in the final 3 months of the final rate of earnings period.

NOW THEREFORE BE IT RESOLVED by the Board of Trustees of the Illinois Municipal Retirement Fund that Resolution 2011-08-12 is amended to provide that earnings increases resulting from payments for unused vacation time made in the final 3 months of the final rate of earnings period be exempt from the calculation of an Accelerated Payment.