| Topic: | 125 Percent Rule |
| Subtopic: | Anti-Spiking |
| Date: | 9/2/2010 |
| Status: | Active |
WHEREAS, section 7-102 of the Illinois Pension Code provides that it is the purpose of the Illinois Municipal Retirement Fund to provide a sound and efficient system for the payment of annuities and other benefits to certain officers and employees, and their beneficiaries, of municipalities; and
WHEREAS, section 7-174 of the Illinois Pension Code creates a Board of Trustees to carry out the provisions of Article 7 of the Pension Code; and
WHEREAS, section 7-116 of the Pension Code provides a limitation on the earnings recognized in the last 3 months of the period used to calculate a pension; and
WHEREAS, the Board of Trustees recognizes that compensation increases paid during the final years of employment with the purpose of increasing a participant's pension beyond the limitations of section 7-116 are not compatible with good pension plan administration and may be one cause of pension plan under-funding; and
WHEREAS, the Board of Trustees believes that such compensation increases are antithetical to a sound and efficient system for providing retirement income.
NOW, THEREFORE, BE IT RESOLVED that the Board of Trustees hereby states its unequivocal opposition to compensation increases paid during the final years of employment with the purpose of increasing a participant's pension beyond the limitations of 7-116.
BE IT FURTHER RESOLVED that the Board of Trustees will support measures, conforming to the requirements of the Illinois Constitution and Pension Code, designed to end such compensation increases.