Board Resolution 2006-03-04(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, Section 7-144 of the Pension Code requires suspension of annuity payments to persons who return to participation after having been awarded an annuity under Section 7-142; and

WHEREAS, Section 7-144 of the Pension Code provides for the calculation of supplement annuities when the pension is reinstated after a return to work; and

WHEREAS, Resolution 1972-8440, adopted April 28, 1972, relates to suspension of optional annuities of annuitants who return to work after being awarded an optional annuity and the amount of annuity to be reinstated; and

WHEREAS, amendments to the Pension Code since 1972 have made Resolution 1972-8440 obsolete; and

WHEREAS, it is appropriate that the Board of Trustees adopt procedures, under Section 7-144, for the calculation of supplemental annuities for a second retirement after a return to work.

THEREFORE BE IT RESOLVED that the following rules shall govern the determination of the amount of the annuity to be reinstated, following suspension of that annuity because the annuitant re-entered service:

1. Return to work for less than 48 months
   1. Regular original annuity (calculated without regard to Section 7-142(b)): The monthly annuity payable upon reinstatement of the retirement benefit shall be the amount originally awarded, plus the supplemental annuity calculated by multiplying the monthly average earnings in the entire return-to-work period by the total number of months of the return-to-work period by .01667. If the member is under age 60, this supplemental annuity shall be reduced by 0.25% for each month under age 60, or if a smaller reduction, 0.25% for each month less than 35 years of service. To this total monthly annuity shall be added the 3% yearly increments under Section 7- 144.2 from the original retirement date to the effective date of the reinstated annuity.
   2. Original annuity calculated under Section 7-142(b) and the member was under age 62 at return to work: The monthly annuity payable upon reinstatement of the retirement benefit shall be the regular annuity (not calculated under Section 7- 142(b)) payable at the original retirement date less the actuarial value of the additional pre-age 62 benefit amount paid, computed as of the date of suspension, plus the supplemental annuity calculated by multiplying the monthly average earnings in the entire return-to-work period by the total number of months of the return-to- work period by .01667. If the member is under age 60, this supplemental annuity shall be reduced by 0.25% for each month under age 60, or if a smaller reduction, 0.25% for each month less than 35 years of service. To this total monthly annuity shall be added the 3% yearly increments under Section 7-144.2 from the original retirement date to the effective date of the reinstated annuity.
   3. Original annuity calculated under Section 7-142(b) and the member was age 62 or over at return to work: The monthly annuity payable upon reinstatement of the retirement benefit shall be the originally awarded post-age 62 benefit amount (less any yearly increments), plus the supplemental annuity calculated by multiplying the monthly average earnings in the entire return-to-work period by the total number of months of the return-to-work period by .01667. To this total monthly annuity shall be added the 3% yearly increments under Section 7-144.2 from the original retirement date to the effective date of the reinstated annuity.
2. Return to work for 48 months or more
   1. The monthly annuity payable upon reinstatement of the retirement benefit shall be the greater of:
      1. an amount calculated under section 7-142(a)1.b. considering all service credits in all periods of employment, less the actuarial value in monthly payments for life of the total annuity payments made during the first retirement period, determined as of the age of the member at the effective date of the second retirement.
      2. an amount calculated as if the member returned to work for less than 48 months.
   2. The annuitant may elect the optional plan annuity, if under age 62 on the effective date of the new annuity.

   BE It FURTHER RESOLVED that Resolution 1972-8440, adopted April 28, 1972, is hereby rescinded.