Board Resolution 2012-10-07

WHEREAS, Section 7-102 of the Illinois Pension Code provides that it is the purpose of the Illinois Municipal Retirement Fund to provide a sound and efficient system for the payment of annuities and other benefits to certain officers and employees, and their beneficiaries, of municipalities; and

WHEREAS, Section 7-174 of the Illinois Pension Code creates a Board of Trustees to carry out the provisions of Article 7 of the Pension Code; and

WHEREAS, the Board of Trustees has adopted Strategic Objectives that include achieving a funding level whereby IMRF is in the top 10% on a market value basis, as measured versus a universe of public pension funds with a December 31st year end; and

WHEREAS, one of the key strategies for this Objective is to introduce and take positions on legislation that addresses pension sustainability issues; and

WHEREAS, legislation is often introduced that creates temporary transfer windows that allow IMRF members to transfer service between IMRF and other public pension systems, often without requiring actuarial calculations of the cost, that increase the unfunded liability of IMRF's employers; and

WHEREAS, the Board of Trustees believes that such transfer windows challenge the sustainability of the fund in the realm of public opinion by casting governmental plans in an unfavorable light leading to proposals that would negatively impact the continued existence of public plans as currently structured.

NOW, THEREFORE BE IT RESOLVED, that the Board of Trustees authorizes the IMRF staff to oppose any legislative proposals that create temporary transfer windows that allow IMRF members to transfer service between IMRF and other public pension systems.

BE IT FURTHER RESOLVED that staff is directed to contact the Board immediately when any such legislation is introduced with a report on staff's activities related thereto.