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Home My WebLink AboutS13-00 Ordinance No . S13-00 AN ORDINANCE RATIFYING AND APPROVING THE ELGIN POLICE PENSION BOARD AGREED DECISION AND ORDER REGARDING HOLIDAY PAY WHEREAS, 40 ILCS 5/3-101 provides that the City Council shall establish and administer a police pension fund for the benefit of its police officers and their surviving spouses, children and certain other dependents; and WHEREAS, 40 ILCS 5/3-128 provides for the creation of a Police Pension Board; and WHEREAS, the City Council of the City of Elgin has so provided for the creation of a Police Pension Board through the adoption of Elgin Municipal Code, Chapter 3 . 48 , as amended; and WHEREAS, 40 ILCS 5/3-131-151 provides for certain powers and duties of the Elgin Police Pension Board which includes the power to control and manage the pension fund; and WHEREAS, the Illinois Department of Insurance changed the definition of salary to include holiday pay; and WHEREAS, in accordance with such change by the Illinois Department of Insurance police pension fund beneficiaries and their representatives have requested and asserted that such change of the definition of salary should apply retroactively; and WHEREAS, the Elgin Police Pension Board has decided to apply holiday pay to salary for the purposes of computing pension benefits; and WHEREAS, in order for beneficiaries to receive pension benefits for holiday pay the beneficiaries must make contributions to the Police Pension Fund; and WHEREAS, the Elgin Police Pension Board has proposed a settlement regarding holiday pay and pension benefits which the City Council preliminarily approved on December 15, 1999; and WHEREAS, the Elgin Police Pension Board' s proposed settlement regarding holiday pay and pension benefits has been accepted and entered into by 41 beneficiaries of the Elgin Police Pension Fund. few r NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS : Section 1 . That the City Council of the City of Elgin hereby ratifies and approves the Elgin Police Pension Board settlement of holiday pay as set forth in the Agreed Decision and Order Holiday Pay of the Elgin Police Pension Board attached hereto as Exhibit A for those 41 beneficiaries identified in the listing attached hereto as Exhibit B. Section 2 . That all ordinances or parts of ordinances in conflict with the provisions of this ordinance be and are hereby repealed. Section 3 . That this ordinance shall be in full force and effect upon its passage in the manner provided by law. / Ed Schoc , Mayor Presented: November 29, 2000 Passed: November 29, 2000 Omnibus Vote : Yeas 6 Nays 0 Recorded: November 30 , 2000 Published: few Attest : Dolonna Mecum, City Clerk BENEFICIARIES THAT HAVE MADE THE ELECTION TO TAKE ADVANTAGE OF HOLIDAY PAY INCREASE AND HAVE MADE THE CONTRIBUTION TO THE CITY: 1 . Earl Ackmann 2 . Roy Beverly 3 . Robert Brown 4 . Robert Call 5 . Edward Christ 6 . David Dingel 7 . Gary Eckmann 8 . William Eggert 9 . James L. Gough 10 . Alfred Grantham 11 . Roberta Henke 12 . Alvie Henning 13 . Morgan Homfeldt 14 . Charles Huske 15 . David Jensen 16 . Donald Jensen 17 . William Keeney 18 . Edwin Kehm 19 . Roland Kelahan 20 . Imogene Lagerstrom 21 . Norman Landwehr 22 . John Lawrence 23 . Richard Lifto 24 . John Lloyd 25 . Frederick Lugar 26 . Roger Merrill 27 . Charles Miller 28 . Dale Pate 29 . Harold Pfortmiller 30 . Allan Piske 31 . Roger Rathjen 32 . Jesse Rouse 33 . William Schultz 34 . Donald Sexton 35 . Cipriano Siete 36 . Delores Sodt 37 . JW Smith 38 . Taylor Strickland 39 . Harry Westlake 40 . Phillis Whalen 41 . Carol Zweig e`' EXHIBIT B N 3k5 ELGIN POLICE PENSION BOARD IN THE MATTER OF ) THE ISSUE OF RETROACTIVE ) No. 99-308 HOLIDAY PAY BENEFITS ) AND CONTRIBUTIONS ) ) Edward Christ ) 420 Adams Street ) Elgin, IL 60123 ) S.S. 044-12-8342 ) AGREED DECISION AND ORDER HOLIDAY PAY The City of Elgin Police Pension Board, pursuant to the statutory authority contained in Chapter 40, Act 5, Article 3, Section 131-151, of the Illinois Pension Code, renders the following decision and order as it relates to the change in interpretation of Holiday Pay being considered as part of salary by the Illinois Department of Insurance and its effect on recipients of pension benefits. This matter has been discussed and agreement has been reached with relevant parties ie the police pension board and City of Elgin with the acknowledgment by the Illinois Department of Insurance. row This is an agreed order and if it is accepted by the beneficiary named its terms will be put into effect retroactively to January 1, 1999 the date at which the issue was determined. A. BACKGROUND The Illinois Department of Insurance originally excluded Holiday pay from salary for purposes of computing pension benefits. On April 6, 1996 the Illinois Department of Insurance under Section 4402.30 changed the definition of salary to include Holiday Pay. In accordance with this change at the request of retirees and their representative on the Pension Board considered whether such a definition should have applied retroactively. The Elgin Police Pension Board did decide to apply Holiday Pay to salary. The Illinois Police Pension Code section 3-110 et al. requires that to receive such benefits contributions must be made. The Elgin Police Pension Board and City of Elgin have proposed as follows: 1.) That this benefit is retroactive to January 1, 1999 2.) That the beneficiary and Elgin Police Pension Board agree to accept a one time contribution equal to nine (9%) per cent of the amount of the current annual pension as of January 1, 1999 r 1 EXHIBIT A 3.) That the pensioneer will receive an annual increase of four and one quarter (4 1/4%)percent on their pension upon the payment in full of the nine (9%) percent ""+ contribution 4.) That the salary upon which the contributions and benefits are based is the pension received on January 1, 1999 5.) That pensioneers will receive such benefits as the four and one quarter (4 '/a%) percent increase in pension retroactive to January 1, 1999 6.) That the contribution must be paid on or before June 1, 2000 and that the pensioneer sign this agreed Decision and Order 7.) That only Pensioneers who did not previously have holiday pay attached to salary are entitled to this benefit 8.) That the pensioneer waives any and all retroactive Holiday Pay benefits now and forever 9.) That the City of Elgin Police Pension Board waives any and all rights to past contributions due for Holiday Pay now and forever 10.) That both parties agree to hold each other harmless and indemnify each other in event of a breach of this contract by one party or the other AGREED this day of , 2000. Elgin lice Pensi Board . ' Pension Beneficiary . WHEREFORE, it is agreed and ordered as follows: 1.) That the undersigned beneficiary shall pay a one-time contribution of nine (9%) percent of their salary equal to $ (Amount for each beneficiary to be inserted) 2.) That upon receipt of this signed order and the aforesaid contribution, that the undersigned shall receive a one time four and one quarter(4 '/4%) percent increase 3.) That a lump sum check covering January 1, 1999 through July 31, 2000 will be issued in August 2000. Prepared by Elgin Police Pension Board Attorney Law Offices of Cary J. Collins 2200 W. Higgins Rd., Ste. 145 Hoffman Estates. IL 60195 Phone n 847-519-0010 Facsimile # 847-519-0016 3 BENEFICIARIES THAT HAVE MADE THE ELECTION TO TAKE tow ADVANTAGE OF HOLIDAY PAY INCREASE AND HAVE MADE THE CONTRIBUTION TO THE CITY: 1 . Earl Ackmann 2 . Roy Beverly 3 . Robert Brown 4 . Robert Call 5 . Edward Christ 6 . David Dingel 7 . Gary Eckmann 8 . William Eggert 9 . James L. Gough 10 . Alfred Grantham 11 . Roberta Henke 12 . Alvie Henning 13 . Morgan Homfeldt 14 . Charles Huske 15 . David Jensen 16 . Donald Jensen 17 . William Keeney 18 . Edwin Kehm 19 . Roland Kelahan 20 . Imogene Lagerstrom 21 . Norman Landwehr 22 . John Lawrence 23 . Richard Lifto 24 . John Lloyd 25 . Frederick Lugar 26 . Roger Merrill 27 . Charles Miller 28 . Dale Pate 29 . Harold Pfortmiller 30 . Allan Piske 31 . Roger Rathjen 32 . Jesse Rouse 33 . William Schultz 34 . Donald Sexton 35 . Cipriano Siete 36 . Delores Sodt 37 . JW Smith 38 . Taylor Strickland 39 . Harry Westlake 40 . Phillis Whalen 41 . Carol Zweig EXHIBIT B