Board Resolution 2005-08-11

Meeting room

Topic: Creditable Service
Subtopic: Transfer Calculation for IMRF/Article 3
Date: 8/26/2005
Status: Active

WHEREAS, section 7-198 of the Illinois Pension Code authorizes the Board of Trustees of the Illinois Municipal Retirement Fund to establish rules necessary for the efficient administration of the fund; and

WHEREAS, P.A. 94-0356 adds section 7-139(a)10 to the Pension Code. This amendment allows limited reciprocity between IMRF and police pension funds established under Article 3 of the Pension Code; and

WHEREAS, section 7-139(a)10 provides that service transferred into IMRF from a police pension fund must be reduced if the contributions transferred for that service are less than the contributions, plus interest, that would have been required if the service had originally been credited in IMRF; and

WHEREAS, section 7-139(a)10 requires the Board of Trustees to establish the manner of making the calculation to determine the reduction in the transferred service; and

WHEREAS, the Board of Trustees has consulted with its actuaries to determine the appropriate calculation and has taken into consideration the fund’s actuarial assumptions, including service, age, salary history, and level of employer funding.

NOW THEREFORE BE IT RESOLVED that the Board of Trustees of the Illinois Municipal Retirement Fund does hereby establish the following method of making any necessary reduction in service transferred from an Article 3 pension fund under P.A. 94-0356: the transferred service will be reduced in the same proportion as the ratio between the amount that would have been contributed to IMRF during the period transferred, plus interest, and the amount actually transferred from the Article 3 fund.