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Committee discusses changing IMRF calculation to pretax wages; resolution to be drafted for next meeting
Summary
Members discussed moving IMRF reporting from a post-tax to a pretax wage basis to equalize retirement calculations across employees; staff estimated a modest budget impact and will draft a resolution to be considered with a proposed effective date of Jan. 1, 2026.
County financial staff presented a proposed change to how the county reports wages to the Illinois Municipal Retirement Fund (IMRF). Under the proposal the county would change IMRF reportable wages from a post-tax basis (deducting employee insurance premiums before reporting) to a pretax basis so that employees who take county health insurance are treated the same as those who do not.
Paul introduced the change and said the budget impact to the county is modest — roughly $3,300 to $3,500 per month — and that the change would benefit employees by increasing their final reportable wages and therefore retirement calculations. Reid said the change is not retroactive and staff plan to prepare a sample resolution with an effective date of Jan. 1, 2026 to line up with IMRF’s calendar-year reporting.
Committee members asked that department heads continue conversations with employees about the small additional employee contribution and asked staff to post a sample resolution and include the item as an action on next month’s agenda.
Ending: The committee asked staff to prepare the draft resolution for decision at the next meeting; no resolution was adopted in this session.
