AGENDA
MEMO
City
Council
February
16, 2010
ISSUE
STATEMENT
A resolution adopting the annual 1,000 hour
standard for IMRF participation.
RESOLUTION
BACKGROUND/HISTORY
The
City of Darien
is required to participate in the Illinois Municipal Retirement Fund to provide
pension for employees that work a certain number of hours, excluding police
officers. The 2010 rate for pension
contributions is 10.82% of the employee’s salary. Under the current rules, the City of Darien pays this
contribution for all employees with over 600 hours of service in one calendar
year. Under IMRF rules, a municipality
can adopt a resolution increasing this total to 1,000 hours. This would allow the City to save 10.82% of
the salary of employees who work over 600 hours but fewer than 1,000
hours. The effected employees would be
several temporary summer workers, temporary workers substituting for injured
public works employees, and possibly permanent part-time workers.
If
an elected official wants to participate in IMRF under this option they will
need to sign a letter stating they spend more than 1,000 per year in their role
as an elected official for the City of Darien.
STAFF/COMMITTEE
RECOMMENDATION
The
Administrative/Finance Committee recommends approving the resolution
ALTERNATE
CONSIDERATION
Not
approving the resolution would be an alternate consideration.
DECISION
MODE
This
item will be on the February 16, 2010 City Council agenda for formal approval.