Board Resolution 2020-08-08(b)

WHEREAS, Section 7-198 of the Illinois 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, Section 7-200 of the Illinois Pension Code authorizes the Board of Trustees to make decisions on participation and coverage; and

WHEREAS, the Board of Trustees has historically permitted individuals who work in a qualified position twelve months each year, but receive their pay irregularly or sporadically, to receive twelve months of service credit despite not receiving pay in each calendar month; and

WHEREAS, this type of service, termed “irregular service”, was established by the Board of Trustees, but has no further basis in the Illinois Pension Code and is, in fact, in direct conflict with the Illinois Pension Code; and

WHEREAS, IMRF should award service credit only as expressly provided under the Illinois Pension Code.

THEREFORE BE IT RESOLVED that the following administrative rules be and are hereby adopted by the Board of Trustees:

1. As of the effective date of this resolution, individuals hired into a position which receives irregular pay will only receive service credit in the months in which the individual receives pay which is consistent with the cash basis rule set forth in the Pension Code.
2. Any individuals who have been credited with irregular service as of the effective date of this resolution will continue to receive irregular service credit through December 31, 2020, as long as that individual continues to serve in that particular position or office at their IMRF participating employer.
3. This resolution does not impact seasonal employees as defined in 40 ILCS 5/7-109.1.
4. As of January 1, 2021, no member may earn irregular service credit.

This resolution will become effective as of its date of adoption.