Early Retirement Incentive: Five-year limitation on implementation
August 15, 2012
The IMRF Board of Trustees has amended the time limitation requirements for adoption of an Early Retirement Incentive (ERI).
Employers will be limited to offering ERI programs once every five years, provided any previous ERI liability has been paid in full.
This new restriction will take effect for all ERI programs with an effective date on or after December 31, 2013. If an employer submits an ERI resolution adopting a program before five years have elapsed from the close of a prior ERI, IMRF will not implement the program.
The Board believes that offering frequent ERIs is not within the spirit or intent of the authorizing statute. An ERI is a budgeting tool employers can use to reduce costs. Frequent use increases long-term costs for employers.
IMRF ERI materials will be updated to reflect this new requirement.
Questions?
If you have any questions, please call an IMRF Member Services Representative at 1-800-ASK-IMRF (1-800-275-4673) 7:30 a.m. to 5:30 p.m., Monday through Friday or send IMRF a Secure Electronic Message.