Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Imrf Section125 topic
No spam. Unsubscribe anytime.
Committee hears proposal to credit Section 125 premiums to IMRF; staff to draft resolution for board action
Summary
LaSalle County staff presented a proposed change to allow employees' health-premium contributions under a Section 125 plan to be reported to Illinois Municipal Retirement Fund (IMRF). Staff will prepare a formal resolution and counsel will review before the full board sees the item.
County staff presented a proposal to allow employees who participate in a Section 125 premium-contribution arrangement to have those tax-sheltered benefit premiums reported as eligible wages to the Illinois Municipal Retirement Fund (IMRF). The committee asked staff to prepare a formal resolution for committee and full-board consideration.
Julie (staff member) described the program and said IMRF staff indicated the change was allowable if the board adopted a resolution. "The highlights are the county offers a section 1 25 plan that allows employees who are enrolled in benefits to tax shelter those benefit premiums. And what we're looking to do is approve those benefit premiums as eligible wages to be reported to IMRF," she said.
Julie told the committee she had calculated the county's cost for the initial group of employees who currently tax-shelter benefits: "Because we have 24 people that are currently tax sheltering...there's gonna be a cost to that for the county. And the cost of that is approximately 15,000." She noted the cost could vary year to year depending on the IMRF contribution rate.
Committee members asked for the draft resolution text before forwarding to the full board. Julie agreed to draft the resolution and consult with IMRF and county counsel to ensure the language meets IMRF requirements; she said she expected to have a draft in a few days so the item could be placed on an upcoming finance or full-board agenda.
Why it matters: Reporting benefit premiums to IMRF increases the IMRF-eligible wage base for affected employees, which can increase retirement benefits and the county's IMRF contribution obligation; the county and employees will see tax and retirement impacts.
Next steps: Staff to draft the resolution in consultation with IMRF and county counsel; the finance committee will consider the resolution and then forward a recommendation to the full board for adoption.
