AGENDA MEMO

City Council

July 19, 2010

ISSUE STATEMENT

Consideration of a resolution to include compensation paid under an Internal Revenue Code Section 125 Plan as IMRF earnings.

RESOLUTION

BACKGROUND/HISTORY

The City of Darien participates in the Illinois Municipal Retirement Fund (IMRF), a pension fund for local government employees. Recently IMRF conducted an audit of the City of Darien and made several recommendations, including passing this resolution to comply with our past and current practices. There are two options of reporting salaries to IMRF: one including payroll deductions such as health and dental insurance, and one not including payroll deductions such as health and dental insurance. When the program was set up, Darien selected and contributed based on the option to include payroll deductions in the IMRF formula. This resolution formalizes this current practice.

STAFF/COMMITTEE RECOMMENDATION

Staff recommends approving this item.

ALTERNATE CONSIDERATION

Not authorizing this item would be an alternate consideration.

DECISION MODE

This item will be on the agenda for the July 19, 2010 City Council agenda for formal approval.