Board Resolution 2025-11-11

WHEREAS, at times, active SLEP members are legislatively authorized to transfer creditable service from an Article 3 fund to IMRF SLEP, and

WHEREAS, upon transfer of the amounts accumulated to the credit of the member in Article 3 and employer contributions in an equal amount, IMRF is required to determine, according to the statute, how much SLEP service that transferred amount would purchase; and

WHEREAS, after IMRF determines the amount of SLEP service the transferred Article 3 contributions will purchase, the member may be statutorily provided the option to pay an additional amount in order to purchase up to the total amount of Article 3 service credit or may have their account credited with the partial amount of SLEP service that the Article 3 service will purchase without supplementing that amount;

NOW, THEREFORE, BE IT RESOLVED by the Board of Trustees that the following rules and regulations be adopted:

1. For applications received by an Article 3 fund and by IMRF during a statutorily authorized window, the Article 3 Fund shall transfer to IMRF as soon as practicable:
1. The amounts accumulated to the credit of the applicant on the books of the Article 3 fund on the date of the transfer; and
2. Employer contributions in an equal amount to that transferred under (a).
3. Reports of monthly wages of the applicant for the period of time being transferred so that IMRF can calculate SLEP contributions for the same period of time.
2. IMRF shall then determine the amount necessary to convert the Article 3 credits to SLEP credits by calculating the difference between:
1. the combined employer and employee contributions transferred from the Article 3 fund, and
2. the combined amount that would have been contributed if the member had participated in SLEP during that time, which includes
1. Member contributions using the member contribution rate that would have been required during the period of time being transferred plus interest
   (a) 7.5% for periods from June 1, 2006 to present
   (b) 6.5% from July 1, 1988 to May 31, 2006; and
   (c) 5.5% for periods prior to July 1, 1988,
2. Employer contributions using the normal SLEP rate for the member’s SLEP employer during the period of time being transferred
3. Plus interest thereon at the prescribed rate, compounded annually, from the date of service to the date of payment.
3. Once IMRF has calculated the total amount required to be paid to transfer the total amount of Article 3 service, the member has two options:
1. The member may pay the additional amount determined in Section 2 above and be credited with the full amount of transferred service, or
2. The amount of transferred service shall be reduced by an amount corresponding to the difference in contributions calculated in Section 2 above.
4. The member must make an election to pay the additional amount required under item 3(a) above within 60 days after notification by the Fund of the total cost. If such election is not received by IMRF within 60 days, the member will receive the reduced service amount calculated in item 3(b) above. Payment of such additional amounts shall constitute this election.
5. Neither the amount transferred from the Article 3 fund nor the amount credited in IMRF shall exceed the restrictions set forth in the legislation authorizing the transfer.
6. If the amount calculated in Section 2(a) above is greater than the amount calculated in Section 2(b), the member shall be automatically credited with the maximum credit set forth in the legislation authorizing the transfer and the excess shall be credited to the account of the member’s SLEP employer.