Village of Oak Brook v. Sheahan

Village police chief elected to participate in IMRF, and retired after 6 years as chief. A few days after his retirement, chief transferred his service credit to IMRF, but did not make payment which IMRF had notified him was required to receive IMRF SLEP service credit. IMRF notified Village that Village had unfunded pension liability resulting from chief's retirement. Village filed administrative appeal with IMRF, which upheld amount of unfunded liability, but circuit court reversed, finding that chief had improperly transferred service credit to IMRF from two other pension funds. Interpretation of provisions of Pension Code, and IMRF's authority to adopt a rule permitting members to pay for service credit transfers after their termination dates, are questions of law. A person can be considered "active member" of IMRF only while employed by participating municipality and making contributions to IMRF. IMRF was not authorized to grant chief reduced credit when Pension Code required both transfer of service credit and payment of member contribution.(McLAREN and HUDSON, concurring.