Board Resolution 1992-05-20

Meeting room

Topic: Earnings
Subtopic: Definition of Earnings for IMRF Participants
Date: 5/28/1992
Status: Active

WHEREAS, section 7-114 of the Illinois Pension Code provides that earnings as reported to the Illinois Municipal Retirement Fund for use in the calculation of IMRF benefits shall be an amount to be determined by the Board of Trustees equal to the total amount of money paid to an employee for personal services or official duties as an employee including compensation, fees, allowances and other emoluments paid for official duties, and also the money value of any board, lodging and other allowances provided to the employee in lieu of cash; and

WHEREAS, the Board of Trustees is required under section 7-114 of the Illinois Pension Code to specifically define earnings to be reported to the Illinois Municipal Retirement Fund; and

WHEREAS, the Board of Trustees has carefully studied the requirements for the definition of earnings for a defined benefit pension plan and has considered the needs of both plan members and participating units of government in defining earnings to be reported to the Illinois Municipal Retirement Fund.

NOW THEREFORE BE IT RESOLVED that the IMRF definition of earnings is as follows:

A. IMRF earnings is equal to compensation for personal services paid during the employment relationship and through the first calendar month after termination of employment. Compensation for IMRF earnings purposes includes, but is not limited to, the following:

B. Compensation excluded from the definition of IMRF earnings and not to be reported to IMRF is as follows:

BE IT FURTHER RESOLVED that an IMRF participating unit of government might by governing resolution include as compensation reportable to IMRF the following:

BE IT FURTHER RESOLVED that this definition of earnings would take effect no later than July 1, 1993. Individual units of government may begin reporting to IMRF using this definition of earnings on June 1, 1992 or thereafter.

BE IT FURTHER RESOLVED that compensation paid under an Internal Revenue Code Section 125 plan, premium conversion plan or flexible spending account which was reported to IMRF as earnings prior to June 1, 1992 will remain as reported earnings if the governing body of the unit of government adopts a resolution including said compensation as IMRF earnings prospectively and retroactively.