HomeMy WebLinkAbout03-255 Resolution No. 03-255
RESOLUTION
FOR EMPLOYER PICK-UP OF MEMBER CONTRIBUTIONS REQUIRED
FOR PURCHASE OF ADDITIONAL SERVICE UNDER THE IMRF
EARLY RETIREMENT INCENTIVE
WHEREAS, Section 7-141 . 1 of the Illinois Pension Code
allows certain IMRF members to purchase additional service
credit in order to induce those members to retire early; and
WHEREAS, Section 7-141 . 1 of the Illinois Pension Code
requires a member contribution for the early retirement service
credit; and
WHEREAS, Section 414 (a) of the Internal Revenue Code
provides that contributions designated as member contributions
but picked-up (paid) by the employer shall be excluded from
taxable income until distributed as a refund, annuity or death
benefit; and
WHEREAS, it is desirable that the member contributions
required by the IMRF early retirement incentive by paid by the
employer.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF ELGIN, ILLINOIS, that the member contributions required
by the IMRF early retirement incentive be paid by the City of
Elgin on behalf of all its employees who retire under the IMRF
early retirement incentive.
BE IT FURTHER RESOLVED that the payment shall be made by a
reduction in earnings payments to those employees .
BE IT FURTHER RESOLVED that the pick-up (payment) of member
contributions shall be effective for all employees of the City
of Elgin who retire under the IMRF early retirement incentive
effective March 1, 2004 .
BE IT FURTHER RESOLVED that this resolution shall be in
full force and effect from and after its adoption.
s/ Ed Schock
Ed Schock, Mayor
Presented: September 24 , 2003
Adopted: September 24 , 2003
Omnibus Vote : Yeas : 6 Nays : 0
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk