R-319 - 12/08/1981 - IMRF - Resolutions Supporting Documents WAR- 31i INK ILLINOIS MUNICIPAL RETIREMENT FUND
{ • CHICAGO.ILLINOIS 00006 • Telephone(3121 3464722 100 SOUTH WACKER DRIVE
Board of TnaswS
Albert J.tirfenke.'►'•iJN+rr • Ames E.tabbrha•.Wes ltieetei,rtr
• Jun F.Sink,Smeary • R bsrt J.Corbett • Mtaroln J.WOW,
Gerald J.ae_eeb.Jr. • Kenneth E.Taylor • ROO W.Kwrdt,lbreeueM Dimino
SPECIAL MEMORANDUM
NUMBER: 153
DATE: November 2, 1981 Other Tn TO: 1000 HourdSttaandard-For Partic l
ipationin IMRF - Effective 1/1/82
SUBJECT:
House Bill 786 Approved September 15, 1981 PA. 82-459
Effective January 1, 1982, Article 7 of the Illinois Pension Code has been amended to
permit IMRF employers (other than school districts and special education cooperatives)
to increase the standard for employee participation in IMRF from a position normally
requiring performance of duty for 600 hours or more per year to one requiring 1000 hours
or more per year. For employers electing the new 1000 hour standard, it would be ap-
plicable only to employees prospectively, and would not apply to employees then or
previously employed in positions qualifying for IMRF participation with ABE IMRF
employer.
I. How To Implement
The governing body must adopt a resolution prospectively electing the 1000 hour
standard. This resolution cannot be adopted until the law is effective on January
1, 1982. A resolution adopted before that date will be null and void. A certified
copy of the resolution must be filed with IMRF. The resolution may never be
revoked. A sample resolution (Form 6.08) is attached.
II. Who Is Covered By The 1000 Hour Standard
The resolution must cover all employees of the employer; i.e. all departments
and instrumentalities whose employees are reported to IMtF by the employer.
Only employees hired after the date of the resolution will be covered by the new
1000 hour test. Any employee 4ho has previously worked under anv �el employer
ou
in an IMRF position will remain under the old 600 hour standard•
should have been enrolled in IMRF before the date of the resolution, but was not,
will also be covered by the old 600 hour standard.
If an employee is excluded by an employer under the 1000 hour rule, and later
enters full-time employment, he cannot receive pension service credit for.the
excluded service. If an employee is excluded by one employer under the 1000
standard and shifts to an employer which retains the 600 hour test he can begin
participation with the second employer if he works in a 600 - 1000 hour position,
but mey not receive pension service credit for the period with the first employer.
III. Administration of 1000 Hour Standard
I,II
It should be noted that the administration of IMRF enrollment by employers adopt-
ing the 1000 hour standard will be difficult because they have to determine the
prior work record of employees hired in the 600 to 1000 hour category to determine
whether or not they must �s enrolled is a emplouyerranddi�lcu�lt
problem where an employee it
-Over-
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employer will not be aware of the fact unless each new employee in the 600 to
1000 hour category is asked. It will be incumbent upon each employer adopting
the 1000 hour standard to carefully administer the IMRF program. By adopting the
new 1000 hour standard, they are assuming a greater burden in classifying new
employees in order to avoid obligations for employees erroneously not enrolled
in IMRF.
IV. Elected Officials
Some elected officials such as village trustees, city council members, county
board members, township officials, etc., who have other full-time employment
participate in IMtF on the basis that their public offices normally require
performance of duty for 600 hours or more per year If the standard is raised to
1000 hours, barring unusual circumstances, officials elected in these positions
after the effective date of the resolution could not meet the 1000 hour standard.
Few, if any, public official positions of this type require an average of 20
hours of service per week or more. Therefore, governing bodies adopting the 1000
hour standard should realize that future elected officials in these positions
will also be barred from participation.
V. Employer Cost Savings
Employers adopting the 1000 hour rule will have immediate cost savings because
they will not have to pay IIRE employer cost (contribution rate on employees
earnings) for 600 to 1000 hour part-time employees. However, in the long run,
the actual amount of the savings may be less than expected. The IMtF retirement
rate is already discounted to reflect turnover. Since the greatest turnover of
employees fs often in the part-time 600 to 1000 hour category, the elimination
of these employees may result in a reduced overall turnover. Also, the amorti-
zation of the unfunded employer obligation will be spread over a smaller payroll
which will increase the percentage rate. Therefore, the total dollars paid by
the employer for retirement costs may be very nearly the same as presently
paid on a larger payroll. However, there will be a direct saving for death
and disability employer contributions because of the future exclusion of these
600 - 1000 hour positions.
VI. Reorganizations
Where a new governmental unit is formed solely to take over the functions of an
existing unit the same standard for IMF participation is applied to the new
unit. For instance, when a library district is formed to take over a village
library, the village's standard for IIRF participation is applied. Where a
new unit takes over functions of more than one unit of government, then it
must choose either the 600 or 1000 hour standard when entering IIrRF.
VII. Qualification For Retirement Annuity - Re-employment
An employee who at any time worked for an employer who was under the 600
hour standard is under that standard for qualification for a pension. The employee
cannot be employed in a 600 hour position and draw a pension. Only employees
who had service only for a 1000 hour employer after adoption of the resolution
may return to work in a 600 to 1000 hour category without having their pension
suspended.
If you have any questions, please contact David Regan, Dir of Public Relations.
iiid40.044
a , • usch
Executive Director
RWK/db
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• VILLAGE OF OAK BROOK
• 1200 OAK BROOK LOAD •
OAK BRO+COK, ILLINOIS 1j
654-2220
November 23, 1981
MEMO TO: President and Board of Trustees
SUBJECT: Resolution Adopting The Annual 1,000 Dour Standard for IMRF
Participation
• RECOMMENDATION: That the Village-Board`pass and.approve this •
1.
Resolution which modifies the standard for inclusion
in IMRF from the,current 600 hours per year to the•. proposed 1,000 hours per year. -
•
ormational' memorandum, effective January 1, 1982 I"
• Aa• :indicated by the attactaed informational
the :Illinois Fension Code has been amended to permit IMRE employers to increase j'
the standarde for loyee participation` in IMF from the present position re° ,
gutting duty of 600 hours or more per year to one requiring 1,010:hours or'snore•
per year. IIi •
This would apply only to" employees hired by the Village who had not-previously
I�
participated ii. the IMRF progress or axisting employees currently working for the I.
Village who have not participated in the IMRY retirement fusel: it •
I have reviewed this with Trustee Listecki •sho recommends.-that we adopt and
approve this •Resolution and place it on the-Board agenda for the Board meeting
of December 8 1981
Re- . - •tful submitted,
•
1010211, r a • a
- th C.
Viilae Manager
KGC/cak
Attch.
VILLA OF OAk BROOK -2- '
GE •1 Der 8, 1991
Trustee Philip moved - seconded by Trustee Rush ...
To apprseve Ordinance 0-314 as presented and waive the full reading tl:ereof.
Roll call vote: Ayes: Trustees Imris, Listecki, Philip, Rush, Watson and Congreve.
Nays: None So ordered.
President Carat absent.
D. AN ORDINANCE AMENDING ORDINANCE -177 TRAFFIC CODE OF THE VILLAGE OF OAK
BROX ILLINOIS. AS AMMO, AND PR VrING FOR REVISED PROCEDURES AND
PENALTIES FOR PARKING VIOLATIONS.
Proposed Ordinance authorised by the Board at the Regular Meeting of November 24,
1981.
Trustee Dais moved - seconded by Trustee Listecki ...
To approve Ordinance G-315 as presented and waive the full reading thereof.
Roll call vote: Ayes: Trustees Marie, Listecki, Philip, Rush, Watson and Congreve.
Nays: None So ordered.
President Cerne absent.
A: A RESOLUTION APPROVING THE FINAL PLAT OF THE CHURCH ON THE COUNTY LINE MOB-
DIVISION.
Proposed Final Plat approved at the Regular Meeting of November 24, 1981.
Trustee Watson moved - seconded by Trustee Philip ...
To approve Resolution 1-317 as presented and waive the full reading thereof.
Roll call vote: Ayes: Trustees Loris, Listecki, Philip, Rush, Watson and Congreve.
Nays: None So ordered.
President Cerne absent.
F. 1982 PERMIT RESOLUTION
Proposed Resolution executed annually for construction on state highways and
forwarded to the Illinois Department of Transportation.
Trustee Congreve moved - seconded by Trustee Imrie .,.
To approve Resolution 1-318 as presented and waive the full reading thereof.
Roll call vote: Ayes: Trustees Imrie, Listecki, Philip, Rush, Watson. and Congreve.
Mars: None So ordered.
President Cerne absent.
RESOLUTION REGARDING PARTICIPATING AND COVERED IMPLOTEES UNDER '_"'9E ILLINOIS
MUNICIPAL RETIREMENT FUND (1000 HOURS STARDARD FOR IKRF PARTICIPATE).
Proposed Resolution modifies the staudarel for inclusion in IMF from the current
600 hours per year to 1000 hours per year.
Trustee Listecki moved - seconded by Trustee Rush ....
To approve Resolution 1-319 as presented and waive the full reading thereof.•
Roll call vote: Ayes: Trustees Imrie, Listecki, Philip, Rush, Watson and Congreve.
Nays: Nome So Ordered.
President Corns absent.
•
VILLAGE OF OAK 11008 MINUTES -2- December 8, 1981
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t'''' ' Attention: 11ri Saiph Kauech
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Ismoutios Director . .
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Deer /Ar. KaOschz
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f Tuesday, December 8, 1981., peeeed
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rd Ot their 'Ward nesting o , d for Inoluisigek411,
The Village 8-319 which modifies the standar hours rou s per year to
the railoia. ,-. ,... ,,,-. - —
and approved__ i --1,-*i!*flt*!:fl'Ilatiremeat Fund from the current 600
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1 000'hours per year-
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for your records. ,,
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=Ors' enclosing the above-referenced
thereferillines"cedisPall°Pealilationi°11Code in affattl.vkeo4rantisandthliserY.:
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1- currently working for the Village who have
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8ho44,You roguing any further assistance from us please feel free t, contact us
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at your coirramiewe.
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4.- 1111. ILLINOIS MUNICIPAL RETIREMENT FUND
100 SOUTH WACKER tome • CHICAGO,ILLINCr8 GOON • Telephone 0121 3484722
Bowl Immo
Albert J.tiieacr,/reakktt • Ames Lltekiarhom.Vkr P•wallisys • 1 F.Oire.Se*ney • abort J.Colson • 1Aervia J.Lapiao s
Gerold J.&=::.Jr. • Mamas E.Teyiw► • R OO W.ice.
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•• December 29, 1981
i r. Kenneth 8. Carmignani
Village of Oak Brook
1 k 'reek Road
I k4Brook, IL 60521
;
i
Dear Mr. Caren g�ni I
This is to acknowledge receipt of a certified copy of a "Resolution To
Adopt The Annual 1,000 Hour Standard For IMF Participation submitted in
behalf of your unit of government.
We regret to inform you the said resolution is not valid by reason,
that, the formal action of your governing body was premature. As noted in II
our Special Memorandum Number 153, pas age of the 1,000 hour resolution
cannot be adopted until January 1, 1981 the effective date of legislation
Please submit a corrected resolution adopting this resolution anytime
on or after January 1, 1982.
Should you have any questions, please do not hesitate to contact us.
Sincerely,
/lam" AO., _ .1
. . ,
. . 4!
David J. . .e. II
Director o •ublic Relations
DJR:kc
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cc: Rex Kenner, iMRF field Representative
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