S13-00 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.
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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hereby repealed.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
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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