Board Resolution 2005-05-05(d)

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

WHEREAS, Section 7-152 of the Illinois Pension Code requires a reduction in IMRF disability benefits by the amount of Social Security Disability benefits payable to the disabled member; and

WHEREAS, Section 7-217(b)(2) of the Illinois Pension Code provides that the Board of Trustees in its discretion may postpone making a reduction of disability benefits if there is a delay in the determination by the Social Security Administration whether a disability benefit is payable, until such determination has been made; and

WHEREAS, the Board also has discretion to postpone the reduction of benefits required by Section 7-222 while the Workers’ Compensation claim is pending; and

WHEREAS, it is desirable that the Board of Trustees adopt rules and regulations for the application of this discretion for the guidance of the Executive Director and staff;

NOW, THEREFORE, BE IT RESOLVED that the Board of Trustees adopts the following rules and regulations under Section 7-217(b)(2) and 7-222 of the Illinois Pension Code:

1. Postponement in the reduction of the disability benefit payable by this Fund will be made only upon request of the employee. The employee shall file satisfactory evidence of:
   1. Continuing Disability
   2. Filing of an application for Social Security disability benefits or a pending Workers’ Compensation claim.
2. The Board will consider the following factors:
   1. Hardship
   2. Probability of a Social Security disability award or Workers’ Compensation benefit.
   3. Extent of disability.
3. The dollar amount of reduction postponed may not exceed the amount available to the employee as a separation benefit.
4. If a reduction in disability benefits payable by the Fund is postponed and the Social Security Administration later awards the employee a disability benefit or the employee is awarded Workers’ Compensation benefits, the amount of reduction which has been postponed shall immediately be withheld from the disability benefits payable by the Fund until the total amount of the postponed reduction is recovered.
5. If the Fund is unable to recover the amount of any postponed reduction, from disability benefits payable to the employee or by repayment by the employee, then it shall withhold the amount out of any other benefit payable to the employee or to any other person taking through the employee until the full amount shall be recovered.