| Topic: | Employers |
| Subtopic: | Late Contribution Fees and Interest |
| Date: | 8/19/2022 |
| Status: | Active |
WHEREAS, sections 7-172(h) and 7-198 of the Illinois Pension Code authorize the Board of Trustees of the Illinois Municipal Retirement Fund to establish rules regarding the time and manner of reporting and paying IMRF contributions by participating employers; and
WHEREAS, section 7-209(c) of the Pension Code provides for interest charges at the rate of 1% per month on municipality accounts receivable unpaid for one month or more; and
WHEREAS, the Board of Trustees has previously determined that employer reports of member wages and contributions must be made monthly; and
WHEREAS, the upcoming implementation of the Horizon system will change the manner in which employers report wages and make contributions; and
WHEREAS, is it necessary and desirable to issue a temporary rule regarding fees and interest imposed on employer account delinquencies during the Horizon transition.
NOW THEREFORE BE IT RESOLVED that the Board of Trustees establishes a six-month grace period for a waiver of fees and interest for employer account delinquencies caused by or related to the implementation of the Horizon system.
BE IT FURTHER RESOLVED that the Chief Financial Officer or Comptroller shall be authorized to waive the fees and penalties for employers who need additional time to adjust to the new reporting module. The waiver may only be granted upon determination of the Chief Financial Officer or Comptroller that the employer has demonstrated a good-faith effort to conduct business with IMRF notwithstanding any difficulties of the Horizon system.
This resolution becomes effective on the date upon which the IMRF Horizon system goes live for use by employers and waivers may be granted for six months from that date. Employers shall be given advance notice of the transition to Horizon.