97-279 Resolution No. 97-279
RESOLUTION
TO ADOPT AMORTIZATION PERIOD FOR
IMRF EARLY RETIREMENT INCENTIVE
WHEREAS, on December 3, 1997 the City Council of the City
of Elgin adopted Resolution No. 97-278 which established an
early retirement incentive ( incentive) through the Illinois
Municipal Retirement Fund for its employees; and
WHEREAS, Section 7-141 . 1 of the Illinois Pension Code
provides that a participating employer may select an
amortization period for the actuarial costs of the incentive
which may be no less than 5 years and no greater than 10 years;
and
WHEREAS, the City of Elgin is prohibited from adopting a
subsequent incentive until the actuarial costs of the previous
programs are paid.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF ELGIN, ILLINOIS, that the City of Elgin does hereby
request the Illinois Municipal Retirement Fund to amortize the
cost of the incentive over a period of 10 years .
s/ Kevin Kelly
Kevin Kelly, Mayor
Presented: December 3, 1997
Adopted: December 3, 1997
Vote: Yeas 7 Nays 0
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
Resolution No. 97-280
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 City Council of the City of
Elgin 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 January 1, 1998 .
BE IT FURTHER RESOLVED that this ordinance shall be in
full force and effect from and after January 1, 1998 .
s/ Kevin Kelly
Kevin Kelly, Mayor
Presented: December 3, 1997
Adopted: December 3, 1997
Vote: Yeas 6 Nays 1
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk