Board Resolution 2015-11-14(b)

WHEREAS, section 7-139(a)4 of the Illinois Pension Code provides for pension credit for authorized leaves of absence without pay under certain conditions; and

WHEREAS, section 7-198 of the Pension Code authorizes the Board of Trustees of the Illinois Municipal Retirement Fund (IMRF) to establish rules necessary or desirable for the efficient administration of the Fund; and

WHEREAS, it is necessary for the Board of Trustees to establish the following rules regarding service credit for authorized leaves of absence without pay:

Employees shall be entitled to creditable service and credit for leaves of absence without earnings upon compliance with the following conditions:

1. Application shall be filed while the employee is in an employment relationship (including leave of absence periods).
2. No more than 12 months of creditable service or credit shall be counted for purposes of determining any benefits payable.
3. Upon application by an employee for creditable service and credit, an estimate of the cost shall be made by the municipality in the manner directed by the Fund and the governing body shall approve the grant of creditable service and credit and the estimated cost thereof.
4. Employee contributions for the leave of absence period, plus interest at the effective rate when made, shall be made. The contributions shall be computed upon the assumption earnings continued at the rate in effect immediately prior to the leave of absence. Interest shall be computed from the end of the leave period to the date of payment.
5. Temporary disability benefits, total and permanent disability benefits and death benefits shall be payable to employees on leave of absence if application for creditable service and service credit has been filed with the Fund prior to the date the employee becomes disabled or dies. If such benefit is payable, the computation of which includes the recognition of creditable service or credit during leave of absence as provided in this paragraph, any unpaid employee contributions shall be deducted from the first benefit payment.
6. Creditable service and credits will not be granted for leave of absence (other than military leave) without earnings during any period of prior service. This will apply to all applications, including adjustments, for prior service filed on or after December 31, 1967, and to determination of prior service of employees of municipalities or participating instrumentalities beginning participation on and after January 1, 1968.