Public Act 95-0890
Public Act 95-0812
August 26, 2008
Executive Summary
On August 22, 2008, the governor signed Senate Bill 1957 (Public Act 95-0890). Under this new law, the IMRF Annuitant Trustee now has the right to vote on any and all actions before the Board of Trustees. It also increases from four to five the number of votes necessary for every decision or action by the Board of Trustees. This law is effective immediately.
On August 13, 2008, the governor signed House Bill 4603 (Public Act 95-0812). This new law provides that until January 1, 2010, former members of IMRF or of a local police pension fund who transferred service to their current fund under Public Act 94-0356 may establish additional service credit, but only up to the amount of service credit that was reduced in the transfer. This law is effective immediately.
| Public Act 95-0890 - Annuitant Trustee vote | |
|---|---|
| Old law | The Annuitant Trustee was a non-voting position to the Board. The Annuitant Trustee could vote on Committee recommendations, but not on Board decisions or actions. |
| New law | Gives the annuitant trustee the right to vote on any and all actions before the Board of Trustees and increases from four to five the number of concurring votes necessary for every decision or action by the Board of Trustees. This new law gives retired IMRF members the same Board representation as members and employers. |
| Public Act 95-0812 - Transfer of local police pension service into IMRF | |
|---|---|
| Old law | A brief window existed during which former members of IMRF or of a local police pension fund who had less than eight years of service credit could transfer their service to their current pension fund. For some members, the amount of service credit transferred was prorated (reduced) based upon the amount of employer contributions, member contributions, and interest transferred. |
| New law | Provides a window during which former members of IMRF or of a local police pension fund who transferred service to their current pension fund under Public Act 94-0356— but had their service reduced during the transfer—may purchase the service that was reduced in the transfer. The member would pay the total cost of the reduced service plus 7.50% interest from the original payment date through the end of the year payment is made. |
Current IMRF members
IMRF will contact current IMRF members who transferred service under Public Act 94-0356 from their previous local police pension fund and had their local police pension fund service reduced in the transfer. We will advise the member of the amount of service he or she may establish under Public Act 95-0812 and the cost of the service.
The member is allowed a one-time lump sum payment to purchase the service. IMRF must receive the member’s payment no later than December 31, 2009.
Former IMRF members
Former IMRF members who transferred their IMRF service to their local police pension fund under Public Act 94-0356 should be be contacted by the Illinois Department of Financial and Professional Regulation regarding the member’s right to establish the service that was reduced.
These members are also allowed a one-time lump sum payment to purchase the service. The member’s current local police pension fund must receive the member’s payment no later than December 31, 2009
Questions?
If you have any questions, please call an IMRF Member Services Representative at 1-800-ASK-IMRF (1-800-275-4673) 7:30 A.M. to 5:30 P.M., Monday through Friday.