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TO: Mayor Richard C. Irvin
FROM: Stacey L. Hamling, Chief Financial Officer/City Treasurer
DATE: August 16, 2017
SUBJECT:
Recertification of IMRF eligibility for all elected positions participating in the Illinois Municipal Retirement Fund (IMRF)
PURPOSE:
To facilitate the City Council’s adoption of the attached resolution that would re-affirm the positions of mayor and aldermen meets the 1,000-hour standard for participation in the IMRF.
BACKGROUND:
Employees of the City of Aurora who are not sworn police officers or firefighters and are expected to work at least the number of hours that are established as the City’s “hourly standard” are required to participate in the IMRF, a defined benefit pension plan. State law permits a municipality to establish an hourly standard of either 600 or 1,000 hours per year. The City has operated under the 1,000-hour standard since November 26, 2002.
State law also affords a local government’s elected officials the option of choosing to participate in the IMRF if they meet the government’s hourly standard. The government must declare which of its elected positions meet its hourly standard by the adoption of a resolution.
DISCUSSION:
The IMRF Board of Trustees adopted a new rule requiring recertification of IMRF eligibility for elected positions. The recertification process will give the city an opportunity to review the IMRF eligibility rules that will ultimately aid the city with compliance and avoid costly mistakes in enrollment. Additionally, recertification will streamline the IMRF audit process because IMRF’s auditors will be able to rely on the accuracy of the recertification without requiring additional documentation.
The attached resolution will re-affirm that the positions of mayor and aldermen meet the 1,000-hour standard.
IMPACT STATEMENT:
N/A
RECOMMENDATIONS:
That the City Council adopt the attached resolution that would re-affirm that the positions of mayor and aldermen meet the 1,000-hour standard for participation in the IMRF.
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Recertification of IMRF eligibility for all elected positions participating in the Illinois Municipal Retirement Fund (IMRF)
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City of Aurora is a participant in the Illinois Municipal Retirement Fund, and
WHEREAS, elected officials may participate in the Illinois Municipal Retirement Fund if they are in positions normally requiring performance of duty for 1, 000 hours or more per year, and
WHEREAS, this governing body can determine what the normal annual hourly requirements of its elected officials are, and should make such determination for the guidance and direction of the Board of Trustees of the Illinois Municipal Retirement Fund;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: finds the following elected positions qualify for membership in IMRF: Mayor, Aldermen at Large, Aldermen (from Wards) effective November 26, 2002