Section 6 - IMRF

Member Accounts / Past Service / Employer Resolutions / SECTION 6
Illinois Municipal Retirement Fund
IMRF member contributions are to be deducted from the payment and remitted to IMRF. In addition,
counties are required to make employer contributions on the gross amount. The ECO employer
contribution rate is applied to stipends for those officials enrolled in the ECO plan.
Generally stipends are paid once a year and cover 12 months of elected service. There is an exception
if the official ceases to hold office. In that case, the stipend is prorated and payment is made for each
month the official held office since his or her last stipend payment.
Stipends are an annual payment and if not previously reported should be reported as such when
terminating an ECO plan member’s participation.. The total amount reported for the final earnings
should never exceed the annual salary plus one annual stipend amount. In other words, if during one
calendar year an official receives both the usual 12-month stipend payment plus a second stipend
payment for a partial year to reflect the last portion of his or her term in office, you would report only
the 12-month amount.
Example 1
An official makes $40,000 per year and receives an annual stipend of $3,600. The stipend is paid every
July for the previous July 1 through June 30 period. The official resigns on September 30. When
completing the termination, you would report at an annual salary of $40,000 and an annual stipend of
$3,600. Do not report a stipend of $4,500 ($3,600 plus $900 for 3 months at $300 per month).
Example 2
An official makes $44,500 per year with an annual stipend of $3,600 paid in July. However, beginning
July 1, the annual stipend was increased to $5,000. The official leaves office on December 2. At the
time he left office he has yet to receive his prorated stipend for the July through November period (in
fact, payment is not received until the following February). When completing the termination, you
would report an annual salary of $44,500 and an annual stipend of $5,000. This is because the statute
requires IMRF to use the salary in effect on the date of termination ($44,500 and $5,000).
b. Per Diem earnings
Some County Board members receive a payment for each County Board or Committee meeting
attended. Unlike salaried officials, you cannot merely rely on the salary schedule in effect on the date
of termination. The per diem payments vary widely from month to month. When completing the final
earnings and contributions report, include as final annual salary the total per diems paid to the official
within the last 12 months of his or her service.
Example 3
The County pays per meeting attended. The Board member leaves office on December 2 (without
attending any meetings that month). During the last 12 months of the term, the board member attended
one meeting in December of last year, no meeting in January, three meetings per month for nine
months, and six meetings in the last month for a total of 34 meetings. He or she was paid $3,400
during the 12-month period. Enter $3,400 as the final annual salary earned.
Example 4
Same facts as in Example 5, except the official turns in all his or her per diem requests in November,
the month before leaving office. His or her final annual salary earned is $3,400. It is not $3,400 times
12 months or $40,800.
c. Expense Reimbursements (Mileage, Meals)
Expense reimbursements are not IMRF earnings and should not be added to an official’s salary or per
diem. They should not be reported to IMRF as part of the official’s final annual salary.
d. Premium Pay
Many Counties pay Board members an additional amount to participate on committees, to be
committee chairpersons or to be Board President. Some Board Presidents receive an additional
payment to be liquor commissioner. This premium pay is considered IMRF earnings and should be
reported to IMRF.
Page 240 January 2014