Board Resolution 2005-10-05(a)

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, the Board of Trustees has previously adopted Resolution 1974-9277, establishing reserve accounting procedures in cases of felony forfeitures of annuities in pay status; and

WHEREAS, changes to Illinois law require changes to this Resolution; and

WHEREAS, it is appropriate that this Resolution be amended as set forth in the attached.

NOW THEREFORE BE IT RESOLVED that Board Resolution 1974-9277 be and is hereby amended as shown.

WHEREAS, Section 7-219 of the Illinois Pension Code provides that an employee convicted of a felony relating to or arising out of or in connection with his service as an employee, shall not be entitled to a retirement annuity based on that service; and

WHEREAS, an annuitant convicted of a felony may forfeit all or part of his annuity under this provision; and

WHEREAS, the cost of annuity, in excess of employee contributions plus interest to date of the effective date of the annuity, will have been charged to the employer or employers accumulation reserve;

RESOLVED that the following adjustments shall be made when a retirement annuity is terminated or reduced pursuant to Section 7-219.

1. The employee shall be entitled to a refund of his own contributions.
2. The interest reserve shall be credited with the amount (if any) equal to the interest on employee contributions at retirement less the amount of any annuity payments.
3. The employer accumulation reserve shall be credited with an amount (if any) equal to the original charge to this reserve minus the excess of the annuity payments over the interest applied to the cost of the annuity.
4. If the employee worked for more than one IMRF employer the pension shall be recalculated and the excess over the reduced pension shall be accounted for as in paragraph 2. If the annuity payments exceed the interest earned on the contributions with the employer where the felony was committed, an appropriate pro-ration shall be made.