08-65 C--1
Suggested Form of Resolution to Allow Service Credit for Military Service
RMember did not return to IMRF within 90 days of discharge OR military service earned prior to participation
F IMRF Form 63A(08/2007)
PLEASE NOTE: This form is to be used for military service that
•interrupted IMRF participation but member did not return to IMRF within 90 days of discharge OR
•was earned prior to IMRF participation
Use Form 6.62:for military service that interrupted IMRF participation with NO restrictions on amount of service credit
Use Form 6.62A: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
3347
ALL BLANK SPACES ON THIS FORM MUST BE FILLED IN.
RESOLUTION
Number 08-65
WHEREAS,Article 7 of the Illinois Pension Code(40 ILCS 5/7-139) provides that the governing body of a
governmental 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 OR whose
participation was interrupted by military leave but did not return to IMRF participation within 90 days of discharge, and
WHEREAS, such allowance of service credit cannot be limited to a specific IMRF member and applies to all
employees who were in active participating status under IMRF on the date this resolution was adopted;
RESOLVED, that the City Council _
BOARD,COUNCIL,ETC.
of the City of Elgin
EMPLOYER NAME
elects to allow service credit to members who served in the armed forces of the United States for up to four years of
service, prior to their participation in the Illinois Municipal Retirement Fund;
FURTHER RESOLVED, that the City Clerk shall be directed to file a
CLERK OR SECRETARY
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resolution shall remain in full force and effect until modified or rescinded and notice of such modification or rescission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, Diane Robertson , the City Clerk of the
NAME CLERK OR SECRETARY OF THE BOARD
City of Elgin of the County of Kane
EMPLOYER NAME COUNTY
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 resolution duly adopted by its City Council at a meeting duly convened
BOARD,COUNCIL,ETC.
and held on the 12th day of _March , 20 08 .
SEAL
CLERK OR SECRETA Y OF THE BOARD
Illinois Municipal Retirement Fund
Suite 500,2211 York Road, Oak Brook Illinois 60523-2337
Service Representatives 1-800-ASK-IMRF(1-800-275-4673)
IMRF Form 63A (8/2007) www.imrf.org
4 -
February 22, 2008
TO Mayor and Members of the City Council
FROM: Olufemi Folarin, City Manager
'!i .:zr!oi't .lto,
Gail Cohen, Human Resources and Purchasing Director ' t:�r�<„;<a.,;;- ,,:
SUBJECT: IMRF Resolution for Purchase of Service Credit for Military Service
PURPOSE
The purpose of this memorandum is to provide the Mayor and members of the City Council with
information to consider adoption of a resolution that increases the amount of prior military
service an Illinois Municipal Retirement Corporation (IMRF) employee may purchase to
increase their IMRF service credit.
RECOMMENDATION
It is recommended that the City Council adopt a resolution to increase the amount of prior
military service an IMRF employee may purchase from two to four years.
BACKGROUND
In November 1997, the City Council adopted a program permitting IMRF employees to purchase
military service credit towards IMRF retirement. The program permits eligible employees to
purchase up to two years military service credit for service in the military which occurred before
the member began participating in IMRF. There is both a member cost and employer cost
associated with this service credit conversion.
On August 28, 2007, the Governor signed Senate Bill 647 (Public Act 95-0486) into law. The
new law is effective immediately and increases the number of years of military service from two
to four an IMRF member can convert to IMRF service credit. Service credit and salary
ultimately determine an employee's retirement pension.
A spreadsheet to estimate employer cost for members purchasing military services was prepared
using a program written by IMRF.
A break down of eligible employees who are at retirement age or may be reaching retirement age
within the next 10 years and the employer cost required to fund their purchase of military service
credit is shown below:
IMRF Resolution for Purchase of Military Service
February 22, 2008
Page 2
Age Bracket # of Employees Employer Cost
Over 55 7 $339,640
50—55 1 $21,405
45 —49 0 n/a
Under 45 1 $45,208
Total 9 $406,254
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None
FINANCIAL IMPACT
It is anticipated that up to nine employees may take advantage of this program in the near future.
Participation in the program is estimated to increase our employer IMRF contribution by $25,476
a year and an increase to our contribution rate of .0999%. For the 2008 budget, the IMRF
property tax levy totaled $4.2 million.
LEGAL IMPACT
None
ALTERNATIVES
1. The City Council may choose to extend the IMRF military service credit to four years.
2. The City Council may choose not to extend the IMRF military service credit to four
years.
Respectfully submitted for Council consideration.
GAC