Board Resolution 2012-07-06

Meeting room

Topic: ERI
Subtopic: Limitation on Frequency
Date: 7/27/2012
Status: Active

WHEREAS, Sections 7-198 and 7-183 of the Illinois Pension Code authorize the Board of Trustees of the Illinois Municipal Retirement Fund to make rules necessary or desirable for the efficient administration of the fund and to request information from any participating municipality or participating instrumentality; and

WHEREAS, Section 7-141.1 permits units of government to adopt an early retirement incentive program by resolution or ordinance which shall specify the goal of the program is to realize a substantial savings in personnel costs and to provide a budgeting tool to aid in controlling payroll costs; and

WHEREAS, Section 7-141.1 provides that the additional unfunded liability accruing as a result of the adoption of the early retirement incentive program shall be amortized over a period of ten years, except that an employer may provide for a shorter amortization period of no less than five years, and that an employer may accelerate payments to IMRF; and

WHEREAS, the Board of Trustees has determined that a reasonable interpretation of Section 7-141.1 is that a subsequent early retirement incentive program may be implemented no earlier than five years after the close of a prior incentive program.

NOW, THEREFORE, BE IT RESOLVED, that employers may not adopt an early retirement incentive program more frequently than once every five years after the close of a prior incentive program.

BE IT FURTHER RESOLVED, that an early retirement incentive resolution adopting a program earlier than five years after the close of a prior early retirement incentive program shall not be given effect by IMRF.

BE IT FURTHER RESOLVED, that this requirement shall be applied to early retirement incentive programs effective December 31, 2013 and thereafter.