| Topic: | Earnings |
| Subtopic: | Definition of Earnings - Military Wages |
| Date: | 8/23/2019 |
| Status: | Inactive |
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, employment with an IMRF employer may be interrupted due to service in the Armed Forces; and
WHEREAS, the Uniformed Services Employment and Reemployment Rights Act (“USERRA”), 38 U.S.C. § 4301, et seq. and the Illinois Service Member Employment and Reemployment Rights Act (“ISERRA”), 330 ILCS 61/1-1, et seq., establish protections for service members who render military service while employed in a civilian position; and
WHEREAS, Section 1-118 of the Pension Code requires IMRF to comply with the requirements of USERRA; and
WHEREAS, 330 ILCS 61/5-10 requires that a service member continue to receive an amount equal to their regular wages while on certain types of military leave; and
WHEREAS, determining whether the differential compensation or re-employment provisions of ISERRA and USERRA are applicable to an employee is the responsibility of each IMRF participating unit of government; and
WHEREAS, the Board of Trustees intends to amend the IMRF definition of earnings in accordance with the pension protection requirements of USERRA and ISERRA.
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:
If an IMRF employer has determined that an employee would be entitled to differential compensation under ISERRA, IMRF reportable earnings includes an amount equal to an employee’s regular wages regardless of the amount of the differential pay. This definition of earnings also applies to employees who would have been eligible to receive differential pay if their military wages did not exceed their IMRF wages, under ISERRA (330 ILCS 61/1-15). Such wages shall be reported as if the employee were still working in their IMRF position, and service credit shall be granted accordingly.
BE IT FURTHER RESOLVED that this resolution shall be retroactively effective as of January 1, 2019.