ACTION REQUESTED:
Title
Communication from the City Manager and Interim Corporation Counsel with a Request to AUTHORIZE the City Council to ADOPT a RESOLUTION that Elected Official Positions Meet the ILLINOIS MUNICIPAL RETIREMENT FUND (IMRF) Hourly Standard (1000 Hours Per Year).
Body
BACKGROUND:
In 2017 the IMRF Board of Trustees adopted Board Resolution 2017-02-13, requiring recertification of IMRF eligibility every two years for all elected positions.
The Board rule requires all governing bodies with units of government with elected positions participating in IMRF to pass new resolutions re-affirming that the positions meet the IMRF hourly standard (1,000 hours per years). Hours spent at meetings, preparing for meetings, in the office and conferring with constituents are counted as performance of duty and may be included in the IMRF hourly standard. Hours spent on-call or otherwise informally available to constituents do not count as performance of duty and should not be included in the IMRF hourly standard.
The IMRF Board rule was adopted due to issues related to the difficulty of determining how many hours of duty an elected position requires. Previously, IMRF did not require recertification of eligibility for elected positions. If the governing body adopted a resolution for an elected position, any person holding the position could participate in IMRF, regardless of the date the resolution was passed. After IMRF began conducting employer audits, it became clear that many of the resolutions for elected positions on file with IMRF were no longer accurate statements of the hours required for the position.
The IMRF Board adopted the rule requiring recertification of IMRF eligibility for elected positions for several reasons. The recertification process gives governing bodies the opportunity to review the eligibility rules. Recertification streamlines the IMRF audit process. Recertification also takes into account modernization that occurs with changes in technology and legal requirements.
FINANCIAL IMPACT: Elected officials who elect to participate in IMRF will become part of the City’s annual IMRF obligation.
NEIGHBORHOOD CONCERNS: None.
IMPACT IF APPROVED: The City’s elected officials will have the opportunity to participate in the IMRF defined benefit pension plan.
IMPACT IF DENIED: The City’s elected officials will no longer be able to participate in the IMRF pension plan.
ALTERNATIVES: None.
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Have an efficient government.
DEPARTMENT: Legal