(A) Village contributions; definitions.
(1) For the purpose of providing pension benefits for eligible full-time village employees who are not eligible to participate in any pension fund or retirement system established under Articles 2 through 18 of the State Pension Code, being ILCS Ch. 40, Act 5, the village may contribute $2,000 or 10% of an eligible full-time employee’s qualifying compensation, whichever amount is less.
(2) For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
ELIGIBLE FULL-TIME VILLAGE EMPLOYEE. An employee:
1. Regularly and continuously employed by the village for not less than a qualifying 52 prior consecutive weeks term;
2. Average weekly hours worked of not less than 40 hours;
3. Employed by the village on the date of determination of annual qualifying compensation; and
4. Not eligible to participate in any pension fund or retirement system established under Articles 2 through 18 of the State Pension Code.
QUALIFYING COMPENSATION. The compensation earned by an “eligible full-time village employee” during the 52 weeks immediately prior to the date of benefits determination, but excluding compensation earned during the initial, qualifying 52 prior consecutive weeks term of full-time employment. No contributions shall be made, and no benefits paid, for the initial qualifying 52 consecutive weeks of full-time employment.
(B) Appropriation of contributions.
(1) Pension contributions to made pursuant to the plan by the village, as authorized by law and as elected to be provided by the Village Board in its annual appropriation ordinance, shall be the same for all eligible full-time employees qualified to participate in this plan and shall be, as stated, $2,000 or 10% of the eligible full-time employee’s fiscal year salary, whichever is less.
(2) All determinations of qualification and benefits payable annually shall be by the Village Clerk and the Village Treasurer no later than 60 days after passage and approval by the Village Board of its annual appropriation ordinance, provided pension contributions by the village for this purpose are appropriated. An employee may request a review by the Village Board as to:
(a) Eligibility for benefits; and
(b) The computation of benefit amounts, if any.
(3) The Village Board’s determination shall be final.
(C) Depositary agreement. The Mayor and Village Clerk are authorized and directed to execute a depositary agreement, or agreements, on behalf of the village with any authorized depositary for village funds, and providing for the deposit of the described pension benefits to an eligible full-time village employee’s individual account, subject to withdrawal by the employee at retirement, termination or by request, with interest earnings thereon added to the participant’s account; and the Mayor and Village Clerk are further authorized to execute all documents and reports required to effectuate:
(1) The described pension benefits;
(2) Designations and reports of participant’s individual accounts, deposits, interest earnings and withdrawals; and
(3) Internal Revenue Code reporting requirements, if any.
(Prior Code, § 1-7-8) (Ord. 1298, passed 9-3-1992)