IMRF: McHenry County Board members must prove pension eligibility

The Illinois Municipal Retirement Fund is asking McHenry County Board members to prove their eligibility in the state pension program.

Executive Director Louis Kosiba sent a letter to the county Monday asking that elected officials provide documentation of the time they put into their county jobs. Elected officials in McHenry County are required to work 1,000 hours per year to receive pension benefits.

Last year, the 18 board members enrolled in IMRF signed affidavits verifying they meet those requirements, Kosiba said. But the IMRF was later approached by state Rep. Jack Franks, a Marengo Democrat, who investigated the issue himself and became suspicious of whether the forms offered enough validation.

"A legitimate question has been asked," Kosiba said. "We want to go back to the county board and have them provide us with individual documentation. It may be some can and some can't, but we'll have to evaluate it on a case-by-case basis."

In the letter to Cheryl Chukwu, the county's human resources director, Kosiba asked for records, logs, calendars, meeting dates and times, and any other evidence of work hours in 2015 and 2016 for board members. The deadline, he said, is April 4.

Those who can't prove they meet the requirements may be removed from the program, he said.

"Our goal is to ensure that people are properly enrolled in IMRF," Kosiba said.

In what Kosiba called a parallel move, Franks sent a letter to State's Attorney Lou Bianchi last week requesting he petition the court to appoint a special prosecutor to investigate potential criminal activity.

Providing false information in order to receive a benefit is a felony, Kosiba said, noting a criminal investigation would likely focus on the validity of the affidavits.

"I have a fiduciary obligation to protect the taxpayers," Franks said. "I go after waste and fraud and abuse. That is my job. They have nothing to worry about as long as they have the documentation to prove they have done the hours they've claimed. And if they haven't, they might want to get in front of this and do the right thing."

Donna Kelly, first assistant state's attorney, said the office declined to comment.

Though it may take some time, Mike Skala, a District 5 board member for three years, said he calculated his hours when he was asked to sign the affidavit and wouldn't object to submitting further documentation.

"I didn't have a problem at all signing the affidavit saying we were putting in over 1,000 hours," he said. "I can't speak on other board members' behalf on what they do."

McHenry County, as the county board's employer, is required to conduct annual audits to ensure program participants are meeting requirements, according to IMRF guidelines.

But County Administrator Peter Austin pointed to the affidavits as the way to verify their eligibility, saying the county is not responsible for making sure board members are complying.

"That's something we don't keep track of, nor are we required to keep track of," he said. "We don't know what work they're doing on weekends or at home. I don't know how (staff) could possibly do that."

It's not uncommon for participants and employers to be confused by IMRF standards, Kosiba said.

"IMRF's role is really, in one sense, to be educational and let people understand what's required, what's needed and what the implications are," Kosiba said. "At the end of the day, I don't know what our investigation will conclude, but we want to be fair to the county board members and also the taxpayers of the county."

Mary McCann, a District 6 board member for 10 years, said she enrolled in the pension system because "everyone else was taking it" and she realized she was eligible based on the hours she worked.

But offering pension benefits for all county board members is a significant expense, she said, especially when some carry a larger burden than others.

"We do have a lot of committees, and there's work to be done," McCann said, "but there is some streamlining that could take place, there's no question."

How pension benefits are determined

How pension benefits are determined

• The amount of a pension is based on a member's final rate of earnings (FRE) - the highest average earnings over a certain period of time - and years of service in the Illinois Municipal Retirement Fund.

• Members earn service credit toward a Tier 1 Regular Plan IMRF pension by working for an IMRF employer in an eligible position and contributing 4.5 percent of their salary toward future pension.

• IMRF participants must have at least eight years of service before they can receive an IMRF pension.

• 60 is the full retirement age. Members can retire at age 55 but may receive a reduced pension, depending on service credit.

• Members will receive full pension if they retire at 60 with eight years of service, or at 55 with 35 years of service.

• The monthly salary for McHenry County Board members, excluding the chairman, is $1,615. The average service credit is about seven years, though the number ranges from two months to more than 20 years.

• IMRF members with 10 years of service credit and an FRE of $1,600 per month would make $266 per month upon retirement.

SOURCE: Illinois Municipal Retirement Fund