Planning to join IMRF? Follow the “road map” and don’t miss a sign

When a township considers applying for participation in the Illinois Municipal Retirement Fund (IMRF), several statutory requirements must be met—including fixed deadlines—for submitting documents.

The rules for adopting IMRF participation for a township are very specific and are spelled out in Section 7-132.1 of the Illinois Pension Code (40 ILCS 5/7-101 et. seq.). Remember: these rules are statutory; IMRF cannot waive them nor make exceptions if a township misses a step or deadline or makes a mistake. A township attempting to join IMRF must follow the steps and procedures precisely.

The reason most townships fail to enroll in IMRF as planned is because someone assumed they knew the process when, in fact, something important was missed. IMRF’s goal is to ensure a smooth enrollment process so that you will know that your—and your employees’—financial security has been improved through IMRF’s package of death, disability, and retirement benefits.

The steps below provide a brief “road map” of what needs to be done when. You will need a complete set of instructions and blank forms to join IMRF. Call IMRF’s New Account Representative Carla Bermes at 1-800-ASK-IMRF (1-800-275-4673) for an enrollment packet.

IMRF also has seven Field Representatives living in towns throughout the state. They will assist you in the process of joining IMRF.

Steps to join IMRF

1. Contact your IMRF Field Representative or IMRF New Account Representative Carla Bermes at 1-800-ASK-IMRF (1-800-275-4673).

2. Determine which of your employees should be enrolled in IMRF. Contact IMRF for a handy form that will help you determine who should be enrolled (IMRF Form 1.41, “Should this Employee be Enrolled in IMRF?”).

3. Adopt a Resolution to apply for participation in IMRF at the annual township meeting. The electors, at the annual township meeting, must adopt a resolution for application to participate in IMRF. A resolution adopted by the town board of trustees is not sufficient.

In the resolution, the electors choose the annual hourly standard for IMRF participation. (Once chosen, the hourly standard cannot be changed.) The entire resolution must be incorporated in the minutes of the annual town meeting. IMRF can provide you with the resolution language. Please contact IMRF prior to the annual township meeting for a sample resolution (IMRF Form 1.30).

Annual Township Meeting documents to be filed:

q       IMRF Form 1.30, “A Resolution for Application to Participate in the Illinois Municipal Retirement Fund by Town Electors.”

q       A copy of the complete minutes of the annual township meeting.

q       IMRF Form 1.35, “Certification of Minutes of Annual Town Meeting” certified by the town clerk.

q       IMRF Form 1.31, “Township Application for Participation Under IMRF” The township supervisor must complete, sign, and file this form.

Along with:

q       Financial statements.

q       A completed and signed “Financial Checklist.”

q       IMRF Form 1.40A, “Data Sheet for Estimating Cost of Participation.” All employees who are qualified to participate in IMRF must be listed on this form. (Elected officials eligible to participate should be included.)

q       Actuaries’ Fee (The nonrefundable actuaries’ fee varies by number of employees. Fees can be found in IMRF publication “Bulletin 47—Questions and Answers for Units of Government Considering Participation.”)

4. Submit the appropriate forms, along with the actuaries’ fee and the correct financial statements. These documents must be received and approved by IMRF by June 1. Forms, actuaries’ fees, and financial data received after June 1 will be returned and the application process will be delayed until next year.

IMRF will notify the township of the cost study results within eight to 12 weeks. Once IMRF receives your township’s certified resolution, financial report, data sheet and fee, the actuaries’ cost study will be ordered. Once it is determined the township can meet the financial obligations, and after the actuary completes the cost study and prepares a rate report, the application will be presented to the IMRF Board of Trustees for approval.

After participation is approved, the township supervisor will be notified of IMRF Board approval and the annual cost to the township (its employer contribution rate) to provide IMRF death, disability, and retirement benefits to its employees.

After your township receives its Rate and Approval Letter:

5. Call for a special township meeting, allowing at least 30 days notice after the time of required publication.

6. Publish notice of special township meeting (IMRF Form 1.32). The meeting cannot be held earlier than 30 days after publication of the meeting notice. The 30-day limitation is a statutory requirement that cannot be waived by IMRF.

Frequently, townships err by not considering the time between the call for the special town meeting and actual publication of the notice. The 30 days is counted from the publication date. Please remember, it takes time to get information to a newspaper before it is published.

7. Electors adopt an ordinance electing IMRF participation at the special township meeting (IMRF Form 1.33).

Special Township Meeting documents to be filed:

q       A copy of the notice of the special township meeting that was published—an acceptable certificate of publication (issued by the newspaper) must accompany the notice with IMRF Form 1.32.

q       A copy of the minutes of the special township meeting, which sets forth in full the ordinance electing participation in IMRF.

q       An ordinance (IMRF Form 1.33).

 As you can read, there are several necessary steps to take to apply for participation in IMRF. This article provided a brief “road map” of those steps.  If your township is considering joining IMRF, please call IMRF’s New Account Representative Carla Bermes at 1-800-ASK-IMRF (1-800-275-4673) for a complete set of instructions and blank forms.

The process may seem complicated or confusing, but IMRF staff will be happy to assist you along the way. Please call us; we’re here to work with you.