Board Resolution 2018-02-10(b)

WHEREAS, section 7-114 of the Pension Code provides that earnings as reported to IMRF for use in the calculation of IMRF benefits shall be an amount to be determined by the Board of Trustees equal to the total amount of money paid to any employee for personal services or official duties as an employee including compensation, fees, allowances and other emoluments paid for official duties, and also the money value of any board, lodging and other allowances provided to the employee in lieu of cash; and

WHEREAS, P.A. 100-411 excludes vehicle allowances from IMRF reportable earnings for employees who first begin IMRF participation on or after August 25, 2017; and

WHEREAS, the Board of Trustees is required under section 7-114 of the Illinois Pension Code to specifically define earnings to be reported to IMRF and it has previously, in Resolution 2008-01-05(a), included vehicle and other taxable allowances as IMRF reportable earnings, at the option of the participating unit of government; and

WHEREAS, the Board of Trustees recognizes that in P.A. 100-411 the General Assembly has established a public policy against including vehicle allowances as IMRF reportable earnings; and

WHEREAS, the Board of Trustees intends to amend its Resolution 2008-01-05(a) to prohibit employers that have not already done so from adding vehicle allowances to IMRF reportable earnings.

NOW THEREFORE BE IT RESOLVED by the Board of Trustees of the Illinois Municipal Retirement Fund that the IMRF definition of earnings is amended as follows:

On or after November 17, 2017, an IMRF participating unit of government may no longer act to include vehicle allowances as IMRF reportable earnings. Vehicle allowance resolutions adopted before that date will continue to apply only for employees who first began IMRF participation with that employer before August 25, 2017.