Board Resolution 2007-04-08

Meeting room

Topic: Retirement Benefit
Subtopic: Mandatory Direct Deposit
Date: 4/27/2007
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 or desirable for the efficient administration of the Fund; and

WHEREAS, for the efficient administration of the Fund, it is desirable that pension payments be made via electronic funds transfer.

THEREFORE, the Board of Trustees adopts the following direct deposit program:

New Retirees: IMRF will enforce mandatory direct deposit for new retirees effective August 1, 2007. These annuitants will receive up to three paper checks before their benefit payments are suspended. Retirees will be telephoned in advance of the suspension to learn why they did not enroll.

Post-July 2003 Retirees: Currently, 436 of the post-July 2003 retirees still receive a paper check. Beginning June 2007, this group will receive a three-letter campaign reiterating the direct deposit policy. This mailing will encourage retirees to submit their direct deposit applications prior to October 1, 2007. Retirees who do not apply for direct deposit will be contacted by telephone. Exceptions will be granted on an individual basis.

Pre-July 2003 Retirees: Currently, there are 13, 680 pre-July 2003 retirees, survivors and total and permanent disability recipients still receiving a paper check. In June 2007, this group will receive a mass marketing mailing highlighting the benefits of direct deposit.