Board Resolution 2020-11-12(c)

Meeting room

Topic: Creditable Service
Subtopic: Prior Service Procedures
Date: 11/13/2020
Status: Active

WHEREAS, Section 7-139(a)(1) of the Pension Code sets forth the process for employees of a new IMRF employer to seek prior service for employment during the period prior to the employer joining IMRF participation; and

WHEREAS, Section 7-184 of the Pension Code provides that the Board of Trustees shall determine the length of prior service from such information as is available; and

WHEREAS, Section 7-139 of the Pension Code allows 20% of an employee’s prior service, with a 5 year maximum, to be credited without an employee contribution; and

WHEREAS, previously established administrative rules require that governing body positions be certified for IMRF participation by the governing body of the employer prior to the officials holding those positions; and

WHEREAS, governing body officials serving at newly participating IMRF employers need a mechanism to obtain prior service credit; and

WHEREAS, Section 7-198 of the Pension Code empowers the Board of Trustees to establish such rules and regulations not inconsistent with other provisions of the Pension Code as are deemed necessary or desirable for the efficient administration of the Fund.

THEREFORE BE IT RESOLVED, that the following procedures for establishing prior service credit be adopted:

  1. The employer shall file Form 6.07, Application for Prior Service Credit, for each employee qualified to receive such credit. The Application shall require the employer to list the period during which the employee held an IMRF qualifying position and the employee’s earnings for the most recent 3 years.
  2. A member of a governing body of a municipality beginning participation after the adoption of this resolution shall be entitled to service credit for prior service upon fulfillment of these requirements:
    1. Prior to the submission of Form 6.07 for the governing body official(s), a resolution is adopted by the governing body finding that the positions of members of the governing body normally required performance of duty for the applicable hourly standard and specifying the period of time prior to the effective date that this was the case.
    2. If he or she is in an elective position, he or she has elected to participate in the Fund.
    3. A certified copy of the resolution certifying the governing body position was filed with the Fund as of the date of the member’s application for prior service credit.
    4. The service for which credit is requested is within the period specified in the resolution.
    5. It is best practice for members of governing bodies to maintain time sheets which document the time spent on official government business as a member of the governing body of the municipality.
  3. Based on the data furnished on Form 6.07, the Fund will determine eligibility for and the amount of credit to be granted without cost to the member and the amount available for purchase by the member, in accordance with the Pension Code.
    The Fund shall furnish a Statement of Prior Service to each employee entitled thereto, with copies to the employer. The Fund shall also provide each employee with a payment schedule for the prior service for which member contributions are required.