Title/Name/Summary
Resolution Relating to Termination of Participation by Village President in the Illinois Municipal Retirement Fund
History
Per a Village Trustee request, below please find information relative to termination of participation by the Village President in the Illinois Municipal Retirement Fund.
Resolution/Ordinance Chronology
Ordinance Number 9321, May 17, 1993 - The Village adopts the 1,000 hour IMRF Standard for employees and officials occupying offices or positions after May 17, 1993.
Resolution Number 0315, May 19, 2003 - IMRF Resolution that confirms that the Village Clerk, Village President and Members of the Board of Trustees work 1,000 hours or more per year.
Ordinance Number 5135, October 17, 2016 - Village President compensation increased to $150,000 per year (plus $3,000 per year as liquor commissioner).
Resolution Number 1722, August 21, 2017 - IMRF Resolution that reconfirms that Village Clerk, Village President and Members of the Board of Trustees work 1,000 hours or more per year.
Ordinance Number 5390, March 4, 2019 - Village President compensation reverts back to $40,000 per year (plus $3,000 per year as liquor commissioner) as of April, 2021. The recitals of the Ordinance also indicate that it is the expectation of the Village Board of Trustees that the Village President will devote his/her working hours annually equivalent to those of a part-time Village employee, and that the professional staff promote and facilitate economic development.
Resolution Number 1907, 1909, and 1910, May 20, 2019 - IMRF Resolution certifying that Village Trustees and Village Clerk no longer qualify for IMRF participation as a result of the decrease in the number of hours worked per year.
Resolution Number 1908, May 20, 2019 - IMRF Resolution certifying that the Village President will not qualify for IMRF participation effective May 3, 2021 as a result of the decrease in the number of hours that will be worked beginning with the new election term.
October 21, 2019 Village Board Meeting
A new resolution was proposed that would have rescinded Resolution Number 1908 (“PROPOSED RESOLUTION”). The PROPOSED RESOLUTION was not adopted at the October 21st Village Board Meeting.
On the afternoon of October 21, 2019, Village staff requested clarification from the Village’s local IMRF representative as to the effect of the PROPOSED RESOLUTION. The purpose of the clarification was to prepare for any questions that staff may receive at the October 21st meeting.
The IMRF representative indicated that since 1908 was not yet effective, Resolution 1722 would govern as it relates to the Village President’s eligibility to participate in IMRF. Effectively, as of October 21, 2019, the Village President was eligible to participate in IMRF and would continue to be eligible to participate in IMRF after May 3, 2021 if Resolution 1908 was rescinded per the PROPOSED RESOLUTION. The attached correspondence from the General Counsel of the Illinois Municipal Retirement Fund reconfirms this information.
IMRF Form 6.64T
Qualified participation in IMRF is determined by a municipality’s adoption of IMRF Form 6.64T. This Resolution Form certifies whether or not certain elected officials meet the annual work requirements in order to qualify for IMRF participation. Future elected boards are not precluded from changing their hourly determination if circumstances change regarding the number of hours worked.
Immediate Cessation of Village President IMRF qualification
The attached new IMRF Form 6.64T has the effect of immediately determining (instead of May 3, 2021) that the Village President position works less than 1,000 hours per year and would therefore make the Village President ineligible to qualify for IMRF.
Financial Impact
This position is not currently participating in IMRF; therefore, there is no fiscal impact.
Recommended Action/Motion
I move to adopt Resolution number 1923, a resolution relating to termination of participation by elected officials in the Illinois Municipal Retirement Fund.