Board Resolution 2013-09-08

Meeting room

Topic: Voluntary Additional Contribution
Subtopic: Refunds
Date: 9/26/2013
Status: Active

WHEREAS, Section 7-198 of the Illinois Pension Code authorizes the Board of Trustees of the Illinois Municipal Retirement Fund (IMRF) to establish rules necessary or desirable for the efficient administration of the Fund; and

WHEREAS, Section 7-173(d) of the Pension Code, as amended by P.A. 98-0218, provides for withdrawal of Voluntary Additional Member contributions at any time, "to the extent permitted by the federal Internal Revenue Code of 1986, as now or hereafter amended."; and

WHEREAS, the Internal Revenue Code does not allow refunds of interest earned on the IMRF Voluntary Additional Contributions while a Member remains employed by the IMRF-participating unit of government; and

WHEREAS, it is necessary that the Board of Trustees adopt policies regarding refunds of Voluntary Additional Contributions to conform to the requirements of the Internal Revenue Code.

THEREFORE BE IT RESOLVED that the following policies shall govern refunds of Voluntary Additional Member contributions and interest:

A) Refunds of Voluntary Additional Member contributions, plus interest, are not allowed while the Member is employed with an IMRF-participating unit of government.

B) A Member may take a refund of Voluntary Additional Contributions WITHOUT interest while still employed with an IMRF-participating unit of government. The interest must stay on deposit until the Member terminates employment. The interest will continue to earn interest until the Member withdraws it after termination.

C) At retirement, a Member may annuitize the Voluntary Additional account if the account balance is $4,500 or more.

D) The effective date of this IMRF Board policy is February 1, 2014.