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HomeMy Public PortalAboutResolution 1178Su~ggeeted Form of Resolution to. Allo~i+r Service Credit for Military Seririce '~ _ P~410R to IMRF Participation IMRF Form 6.63 (8/97) PLEASE NOTE: This form is to be used for military service credit PRIOR to IMRF participation. Form 6.62: for military service that interrupted IMRF participation with NO restrictions on amount of service credit Form 6.fi2A: for military service that interrupted IMRF participation but WITH restrictions on amount of service credit or specific military operations involved to receive service credit. PLEASE ENTER Employer IMRF I.D. Number 02$5 ALL BLANK SPACES ON THIS FORM MUST BB FILLED IN. RESOLUTION Number 117 8 WHEREAS, Article 7 of the Illinois Pension Code (40 ILCS 5/7-139) provides that the governing body of a cam,.. iernmental unit may elect to allow service credit in the Illinois Municipal Retirement Fund to members who served in the armed forces of the United States for all periods of such service prior to their participation in IMRF, and WHEREAS, such allowance of service credit cannot be limited to a specific IMRF member and applies to all members who were in active participating status under IMRF on or after August 16, 1997; RESOLVED, that the President and Board of Trusts _ of The Village of Plainfield BOARD, COUNCIL, 6TG. EMPLOYER NAME elects to allow service credit to members who served in the armed forces of the United States for up to two years of service, prior to their participation in the Illinois Municipal Retirement Fund; FURTHER RESOLVED, that the Village Clerk shall be directed CLERK OR SECRETARY to file a certified copy of this resolution with the Board of Trustees of the Illinois Municipal Retirement Fund and that this resolution shall remain in full force and effect until modified ar rescinded and notice of such modification or rescission has been filed with the Board of Trustees of the Illinois Municipal Retirement Fund. This resolution is not limited to a specific military operation. CERTIFICATION I, an ' k ,the NAME CLERK OR SECRETARY OF THE BOARD of the Villa f Plai of the County of EMPLOYER NAME COUN'T'Y State of Illinois, do hereby certify that I am keeper of its books and records and that the foregoing is a true and correct copy of a resolutiv.rldraly adoptedr'by its President and Board of Trustees at a meeting duly convened BOARD, COUNCIL, ETC. and h on tE:te. "~ "~~,~ - day of November 19 9 7 rti~ ~ `- ~" ~~ CLERK OR SECRETARY O E 80ARD Y;. , f ~ Illinois Municipal Retirement Fund ', ,. Suite 500, 2211 York Road, Cak Brook Illinois fi0523-2374 630/368-1010 IMRF Form 6.63 ($/97) Service Representatives 1-800-ASK-IMRF (1-800-275-4673) Richard A. Rock PRESIDENT TRUSTEES Jay D. Darnell VILLAGE OF PLAINFIELD Kathy O'c nnell WILL COUNTY'S OLDEST COMMUNITY Steven L. Rathbun Raymond Smgiich Kurt Stelzer Susan Janik VILLAGE CLERK November S, 1997 Board of Trustees Illinois Municipal Retirement Fund Suite 500, 2211 York Road Oak Brook, Illinois 60523-2374 Re: Resolution to allow Service Credit for Military Service Gentlemen: Enclosed please find a certified copy of Resolution No. 1178 which I am herewith filing with the Board of Trustees of the Illinais Municipal Retirement Fund. If you need any further correspondence, please feel free to contact zny office. Sinc~ely, -'`Susan Janik, Village Clerk L~ 23145 W. LINCOLN HIGHWAY • PLAINFIELD, ILLINOIS 60544 • ($15) 436-7093 • Fax ($15) 436-1950 Illinois Municipal Retirement Fund 17rake Oak Brook Plaza Suite 500 2211 York Road Oak Brook IL 60523-2374 630/388-1010 Service Representatives 1-800-ASK-IMRF GEN~RAI_ MEMORANDUM coP, Number: 428 Date: August 27, 1997 To: Authorized Agents Subject: Governor's Approval of Military Service Credit Legislation On August 16, 1997, Governor Edgar signed into law Senate Bill b65 (Public Act 90-0448) which allows IMRF members to purchase Military Service Credit. The purchase of military service credit for public employees is a benefit designed to partially compensate veterans for their service in the armed forces. If military service occurred before a member began participating in IMRF, Public Act 90-0448 allows those members to convert up to Cwo years of that service Co IlVIRF service credit. This is a purely optional program. It is up to the governing body of the local unit of government to determine whether it wishes to pass a resolution making its IMRF members eligible far service credit under this legislation. Enclosed is a booklet explaining the features of the program. The booklet includes information and forms For members as well as a sample resolution form (IMRF Form 6.63, "Suggested Farm of Resolution to Allow Service Credit far Military Service Prior to IMRF Participation"). If you choose to adopt the program, please notify your employees and distribute copies of the enclosed booklet to them. IMRF will not notify your employees once you adopt the program. IMRF considers that to be an internal personnel matter. If one of your IMRF members contacts IMRF, we will confirm whether you have adopted the program. As with other employer provided programs, IMRF will rely upon the employer to furnish the necessary forms to its employees and to advise them of the procedures to follow. If you have any questions regarding this program, please call an IMRF Service Representative at 1-800- ASK-IMRF (1-800-275-4673, 7:30 a,.na. - 5:30 P.n-t.) or your IMRF Field Representative. Sincerely, ~ r ~~~~ Robert L. Cusma Executive Director enclosure: ivlilitary Service Credit booklet c~w~ . Purchasing Military Service Credit Under 5B665 MEMBER Eligible members You are eligible if: Your current TMRF employer adopts a resolution making its IMRF members eligible to purchase military service credit under this legislation (IMRF Form 6.63, "Suggested Form of Resolution to Allow Service Credit for Military Service Prior to IMRF Participation"). Even if you previously participated with different IMRF employers during your career as an TMRF member, your current employer must adapt the resolution allowing you to purchase the service. Yau cannot purchase military service based on a previous employer adopting the resolution. If you begin working for an employer after it has adopted the program, you will also be eligible. Employer adoption of the resolution is optional. You must have been participating in IMRF on or after Augti~st 16, ].997, the date the legislation became law You would still be considered participating in TMRF if on that date you were: -- on layoff status with right of re-employment, - on TMRF Benefit Protection Leave of Absence, - receiving IMRF disability benefits, or - on seasonal leave. You must have been drafted or enlisted for regular military service, or performed duty in a reserve or national guard unit of the United States Armed Forces. Regular TMRF, Sheriff's Law Enforcement Personnel (SEEP), and Elected County Officials (ECO) are all eligible under this law. When you purchase the service, you will be purchasing service with the IMRF program through which you participate. Tf you purchase military service under: Public Act 90-0448, you may still use the service in the. carnputation of a pension or retirement pay from the U.S. gavernrrtent. 2 MEMBER Purchasing Military Service Credit Under SB665 How you would apply • You must apply in writing (Form 6.02J, "Application for Military Service Credit," page 6), and you must attach a copy of your DD Form 214 (Armed Farces of the United States Report of Transfer or Discharge) to the application. • Form 6.02J replaces all other forms previously used to apply for military service credit (replaces Forms 6.02I and Forms 6.02F). How your cost is calculated • Once IMRF receives your application, we will calculate your cost and send you a payment schedu]e. You may purchase the service credit in a lump sum or on a payment plan. - If you pay the total cost with a lump sum, you will purchase all the service at once. - If you choose the payment plan (Unit Payment Plan), you can purchase one or more months at a time. • For military service occurring before you began participating in IMRF, you are responsible for the payment of both the member and normal employer contributions plus interest. Interest and contributions rates have changed over time. IMRF is required to use the rates in effect when the military service was rendered. Currently, the interest rate is 7.50%. Your first IMRF salary will also be used in the calculation. • The legislation includes a "six-month windaw" reduced interest rate. Ifyou purchase the service credit during the "six -month window" (November 16, 1997 through May 16, 199$) you can take advantage of a reduced interest rate of 2.5% per year. (Your current employer must adopt a resolution before you can purchase the service, see page 2, "Eligible Members.") • Interest is calculated from the date of first participation in IMRF through December 31 of the year preceding the current year. 3 Military Service Credit Prior to Participation in IMRF Explanation, eligibility requirements, and cost to purchase Military Service Credit under Public Act 900448 • What is Public Act 90-0448? • Eligible members • Application Process • How member cost is calculated • Form 6.OZ), Application to Purchase Military Service Credit • Form 6.63, Suggested Form of Resolution to Allow Service Credit for Military Service Illinois Municipal Retirement Fund Drake Oak Brook Plaza Suite 500 221 1 York Road Oak Brook, IL 60523-2174 1-800-ASK-IMRF (1-$00-275-4G73) August 7997 Application for Military Service Credit IMRF Form E.02J (8/97) If you have any questions, please call 1-800-ASK-IMRF (1-800- 275-4673) • The purchase of military service for public employees is a benefit designed to partially compensate veterans for their service in the armed forces. • Any converted military service credit is applied toward the calculation of a member's IMRF benefits. • Member cost and other requirements differ under each law. Please read the following information carefully to determine if you are eligible to establish military service credit under one of the following laws. • If member contributions and interest are required, IMRF will mail you a payment schedule after your application is received and your cast is calculated. UNDER ILLINOIS LAW UNDER FEDERAL LAW MILITARY SERVICE EARNED MILITARY LEAVE MILITARY LEAVE BEFORE MEMBER INTERRUPTED INTERRUPTED BEGAN IMRF PARTICIPATION IMRF PARTICIPATION IMRF PARTICIPATION Member participation as related to military leave Member's current participation Member cost If member has cost, IMRF will calculate your cost and send you a payment schedule. You may purchase the service credit in a lump sum or on a payment plan. Maximum number of years member can purchase Military documentation Military pension Employer resolution required? Military leave can have occurred at any time, even prior to first date of parti- cipation in IMRF. Must have participated in IMRF before and after military leave; can participate with different IMRF employers. Must return to IMRF partici- pating employment within 9t] days of discharge. Must participate in IMRF before and after military leave with the same IMRF employer. Return to work requirement varies. You must be currently participating in IMRF. Member and employer contri- butions plus interest calcu- lated from first date of partici- pation in IMRF. Salary used to calculate cost is first salary earned as IMRF member. Two years. A copy of release order or military discharge must accompany this form. May still use the service in the computation of a pension or retirement pay from the U.S. government. Yes, covers all IMRF members ander that employer. Must be participating in IMRF or in another retirement system covered by the Reciprocal Act. Free No maximum but employer may limit by resolution. A copy of release order or military discharge must accompany this form. May not use the service in the computation of a pension or retirement pay from the U.S. government. Yes, covers all IMRF members under that employer. Must be participating in IMRF or in another retirement system covered by the Reciprocal Act. Member contributions plus interest calculated from the end of the military leave period. Salary used to calculate cost is the salary in effect when the military leave began. Four years. A copy of release order or military discharge must accompany this form. May still use the service in the computation of a pension or retirement pay from the U.S. government. No Employer cost Through future employer rates. Through future employer rates. Through future employer rates SENT BY ~ 1 MRF ; 8-29-97 ;11= 0191(; I,_EG.aI.. DEPT. y 815 43fi 195Q ; # 8/ 9 Application for Military Service Credit IMRF Form 6.02J (8/97) PLEASE PRINT OR TYPE ---~ USE BLACIt,' lN~f MEMBER'S FIRST NAME ~ MIDDLE INITIAL LAST .1R., SR., 11, ETC. SOCIAL, yCCURITY NUM©ER STREET ADDRESS ~ CITY STATE ~.. Z!P -~ (TELEPHONE NUMBER + AAEA COL7E - ... _. __. ....r _. .. ~ ._ . CURIa~NT t:MPLDYYENT INFaR1AAT10N NAME OF CURRENT EIVIPLpYER NAME pF CURRENT RETIREMENT SYSTEM -~ OPTIONAL' ANTICIPATED RETIREAAEN7 OATr; f W-~ IMRF CpVERAAE INIroRMAT10N; IF YOU PREVIOUSLY U8ED A DIFFERENT NAME, wLEASE INbICATE UST ALL FORIIIEA IMRF EMPLOYERS DATE nF HIpTH - ~ . -rPERldn DF EMPLDYMENT (E.G. 9/d7 - 3/9ti) CHECK ONE (Refer to Instructions on previous page) - ... ... . ----.._.._-...,..__....,._ I am Converting my rnili#ary ServlCe to IMRF service credit under the following desiynation_ Mifi#sry leave prior to IMRF participailon D Illlnola law: Sarvico credit during military leave as provided by Puhlic Aot 90-048!3. Empby~-r has fil®d resolution (IMRF Form fi.fi3) with IMRF. Military leave interrupted IMRF partkipatlon ^ Illinois law: Service credit during military leave as provided by the Illinois Pension Code. Employer has filed resolution (IMRF Form 6.52, 6.62A, or 6.63) with IMRF Member understands that if he/she is converting military service under the provlslons of the Illinois Pension Gade that this servlce wltl NOT be used in the cpmputatlon of a pension ar retirement pey ham any branch of the 4mtecl Forces of the Unked Stetea. D t=ederal (avw. Service credit during military leave as provided by the Uniformed Scrvico; Employment and fae- employment Rights Act, fUo employer resolution required. CERTIFICATION BY MEMBER I certify that I entered the Armed Forces of the United States on duty on ~~.~ I began IMRF participation an _ n~re 1 have auhmined documentation from the mllltary arresting to the validity of the dates of my military service Signature of Member pate CERTIFICATION BY AUTHOrtIZED AGENT _ v If employer resolution is required, I certify that resolution Forrn G,f;2, f,.fi2A, or 6.63 allowing service credit for military leave has been adopted by the governing hady and a certified copy has been forwarded to the Illinois Municipal Fletirement Fund. Slgnature of Authorized Agent IMRF Employer LN7. Number ~- -~ FOR uSE BY IMRF CALCULAT D AUDITED ~ I) SJr (:JOE ~~ ~ ~` SERVICE GRANTED ~- ~~ I., . .... . . 1 . ._.._ .._._ M~..._ ._._.~ and I completed Ilpnols Municipal Rertirement Fund Suite 500, 2271 York Road, Oak Brook Illinois fi0523-237a 630/358-1010 IM!~F Form 6.02J 8/97 f•S00ASK-IMRF f7-80D-275-4873) 98/26/97 Z3:ZZ:53 Via Fax -> 81<S 436 1958 5ciharnel Binzeri LEGISLATIVE FAX BRQADCAST Page 89Z The Spring session of the 90th General Assembly was very productive for IMRF. The Pension Laws Commission acted in an oversight function for pension legislation. The General Assembly did not consider any pension legislation that was not approved by the Commission. The screening of pension issues by the Commission provided, for the first time, a process to have pension legislation considered. IMRF's success in obtaining approval of our legislative agenda is, in part, a result of the organized approach the Commission adopted. IMRF enjoyed success during the session with passage of the military service credit legislation, the Early Retirement Incentive program for municipalities, and various other IMRF-endorsed proposals. PUBLIC ACT 90-044$ (SENATE BILL 665} (Sen. Maitland/Rep. Murphy) VOTE: House 116 - 1 - 0 Senate 53 - 2 w 0 The legislation contains IMRF's non-cost legislative agenda and military service. Allows employees to purchase military service credit rendered before IMRF participation: 1) Optional with employer; 2) An indiv(dual must be an active member: 3) Up to 24 months of service in the armed farces of the United States (including the Reserves and the National Guard} can be converted to IMRF service; 4) Requires contributions by the veteran consisting of employee/ employer contributions plus interest; 5) Required contribution accrues interest until paid; 6) Fora 6 month period after the proposal is approved, members can purchase the credit with a low interest rate (2,5%), After that window closes, the cost would be calculated using IMRF's regular interest rate. • Grants IMRF authority to administer Deferred Compensation Plans (f.R.C, 457) and Tax-Sheltered Annuities [(IRC 403(b).] • Limits free service credit for employees with ,new IMRF employers to 20% of their service ar 5 years, whichever is less. The employee must purchase any additional credit. ^ Permits an inactive member to exclude his/her spouse from receipt of death benefits, • Allows new retirees to reduce their annuity and to provide additional benefits to a surviving spouse (Reversionary Annuity). ^ Allows "former county board members" who could have participated in IMRF, but did not, to establish over 50 months of service credit. County boards must file a resolution with IMRF before January 1, 1999 in order for these individuals to became eligible. BB/26/97 23:23:29 Via Fax --> Legislative Fax Broadcast Page 2 815 436 1958 Scharnel Binzea~ ° Fage BB3 PUBLIC ACT 90-0032 .(HOUSE BILL 313) (Rep, Turner/Sen. 'Malley) VOTE: House 117 - 0 - 0 Senate 55 - 2 - 0 • Provides an alternative formula for elected county officials. The County Board must approve the adoption of the program before an elected caunry official can participate in the plan. • Allows municipalities to adopt the ERI program. The adoption of the program is in the sole discretion of the municipality. Employees of participating municipalities will be offered the same enhancements that are available to other employees of ERI employers. • Allows an employer to adopt the ERI program more than once every six years; however, all of the unfunded liability incurred by the previous offering must be paid. • Allows controlled substance investigators to transfer credits from SLEP to the State Employees' Retirement System Alternative l=Qrmula. These individuals can also transfer credit from downstate police systems. PUBLIC ACT 90-0019 (HOUSE BILL 356) (Rep. Murphy/Sen. Madigan) VOTE House 117 - 0 - 0 Senate 57 - 0 -0 The legislation was crafted by Illinois Reciprocal Conference. Assists reciprocal systems to be in compliance with new Internal Revenue Code Section 415 exemptions from retirement benefit limits. Places reciprocal systems in compliance with the Uniformed Services Employment and Reemployment Rights Act. PUBLIC ACT 90-0460 (HOUSE BILL 593) (Rep. Hoeft/Sen. Madigan) VOTE: House 113 - 0 - 0 Senate 54 - 2 - 0 Allows Chiefs of Police to transfer out of SI~EP and into a Downstate Police pension fund. Chiefs can rescind their participation in IMRF until January 1, 1999. The General Assembly will begin the Veto session in October. The Pension Laws Commission is expected to meet over the summer on various issues. An agenda and meeting times are not currently scheduled.