Board Resolution 2003-06-07

Meeting room

Topic: Retirement Benefit
Subtopic: Changes in Benefit Election
Date: 6/27/2003
Status: Active

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

WHEREAS, the IMRF plan allows certain members and beneficiaries to choose between benefit options; and

WHEREAS, the Board of Trustees has previously adopted rules governing the circumstances under which a member or beneficiary may change a benefit option previously elected; and

WHEREAS, the Board of Trustees has determined that it is desirable that these rules, found at Resolution 1988-07-33, be updated to reflect current benefit choices available to IMRF members and beneficiaries; and

WHEREAS, the Board of Trustees has determined that the following rules are necessary and appropriate for the efficient administration of the fund.

NOW THEREFORE BE IT RESOLVED that the following rules shall govern a request to change a previously elected benefit option:

  1. A request to change a benefit election shall be permitted by the Board provided:
    1. No request to change a benefit election shall be considered if the recipient has accepted and negotiated three or more periodic payments.
      1. An exception to this rule 1(a) may be made if the periodic benefit is the annuitized refund of surviving spouse, SLEP, or ECO contributions. In that case, the member may request a refund of the remaining contributions, less the total of annuity payments received to the date of the refund.
    2. No request to change a benefit election shall be considered if the recipient negotiated a lump sum payment more than three months prior to receipt by IMRF of the request for change.
  2. If the change of benefit election will adversely affect the income tax treatment of the benefit, the recipient understands and accepts the tax consequences.