HomeMy WebLinkAbout6.4 RESOLUTION AUTHORIZING THE PURCHASE OF OUT-OF-STATE SERVICE FOR ILLINOIS MUNICIPAL RETIREMENT FUND (IMRF)M��GauC �'d'+rt;�iect
Item Cover Page
Subject• •N AUTHORIZING THE PURCHASE OF
• • FOR •
MUNICIPAL
Meeting -b 1 A' MEETING OF
PROSPECT.BOARD
Fiscal Impact true
Dollar Amount
Budget Source
Category CONSENT AGENDA
Type Consent
Information
IMRF Members who rendered service for a local government in another state and
participated in a public employee retirement program may receive past service
credit of up to 10 years (120 months) with their current IMRF employer. In order
to allow such, IMRF requires the Village to adopt an authorizing resolution.
If an IMRF member chooses to purchase out of state service credit, the member
must pay IMRF contributions for each month of out-of-state service equal to 10%
times the average monthly earnings for the first 24 months of reported earnings
with the employer authorizing the out-of-state service. Interest is added to the
amount from the end of the two-year qualifying period until the December 31st
preceding the current year. No immediate payment is required by the employer.
The cost will be reflected in future employer IMRF contribution rates.
Allowing IMRF members to purchase out-of-state service assists the Village in
further broadening recruitment efforts when accepting applications for IMRF
qualified positions.
Alternatives
1. Authorize the resolution to allow IMRF members to purchase out-of-state
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service.
2. Action at the discretion of the Village Board.
Staff Recommendation
Staff recommends approving a resolution to authorize the purchase of out-of-state
service for IMRF.
ATTACHMENTS:
Res IMRF out of state service.pdf
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RESOLUTION NO.
A RESOLUTION AUTHORIZING THE PURCHASE OF
OUT -OF STATE SERVICE FOR ILLINOIS MUNICIPAL RETIREMENT FUND (IMRF)
WHEREAS, pursuant to Article 7 of the Illinois Pension Code (40 ILCS 5/7-139 (6)), credible past service
shall be granted to a current member of the Illinois Municipal Retirement Fund (IMRF) for service
previously rendered to an out-of-state local governmental body under the condition that the employee
has irrevocably forfeited all rights to a benefit from that pension program; and
WHEREAS, said creditable service shall be no more than one hundred and twenty (120) months of
service; and
WHEREAS, a resolution must be adopted allowing IMRF members to purchase past service credit for
out-of-state service.
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF
MOUNT PROSPECT, COOK COUNTY, ILLINOIS, ACTING PURSUANT TO ITS HOME RULE POWERS:
SECTION ONE: The Village of Mount Prospect elects to allow the purchase of out-of-state contributions
for members participating in the Illinois Municipal Retirement Fund.
SECTION TWO: That the Village Clerk shall be directed to file a certified copy of this resolution with the
Board of Trustees of the Illinois Municipal Retirement Fund and that this resolution shall remain in full
force and effect until modified or rescinded and notice of such modification or rescission has been filed
with the Board of Trustees of the Illinois Municipal Retirement Fund.
SECTION THREE: That this Resolution shall be in full force and effect from and after its passage and
approval in the manner provided by law.
AYES:
NAYS:
ABSENT:
PASSED AND APPROVED this 155Y day of February, 2022.
Paul Wm. Hoefert
Mayor
ATTEST:
Karen Agoranos,
Village Clerk
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