Home

Members Retirees Employers Legislation Search
Legislation Banner

bullet Member Access
bullet Employer Access
bullet IMRF Forms
bullet Publications
bullet Inactive Members
bullet Frequently Asked
    Questions (FAQ)
bullet About IMRF
bullet Employer Workshops
bullet Member Workshops
bullet Retiree Workshops
bullet en español
bullet Employment at IMRF
bullet Find IMRF Employers
bullet Board of Trustees
bullet Field Services
bullet Investments
bullet Endorsed Insurance
bullet Press Room
bullet Procurement
bullet For Reciprocal Systems
bullet Connect with IMRF
RSS Feed RSS Feeds

 

 

Converting Military Service Credit
to IMRF Service Under P.A. 95-0486

On August 28, 2007, the governor signed Senate Bill 647 (Public Act 95-0486) into law. The new law is effective immediately and increases the number of years of military service an IMRF member can convert to IMRF service credit.

The governor also signed House Bill 804 (Public Act 95-0483). This new law includes the same language regarding converting military service to IMRF service credit as well as language amending the State Employee Article and the Downstate Police Article of the Illinois Pension Code.


Who is eligible to convert military service to IMRF service?

If an IMRF member earned his or her military service before participating in IMRF or did not return to IMRF participation within 90 days of discharge, the member can convert up to four years of military service to IMRF service.

top

What does the employer have to do?

Allowing its IMRF members to convert military service to IMRF service remains optional with the employer. The employer's governing body, e.g., Board, Council, etc., determines if it will allow its IMRF members to convert military service to IMRF service by passing the military service resolution. In order to be eligible to purchase the service under an employer, the member must be employed by that employer on the date the resolution is adopted.

  • If the employer's governing body previously adopted a resolution making its IMRF members eligible to convert two years of military service, its members remain eligible to convert up to two years of military service to IMRF service.
  • If the employer wants to increase the amount of military service its members can convert to IMRF service from two years to four years, it would need to pass a new resolution (IMRF Form 63A).
  • If the employer's governing body never adopted a resolution but wishes to do so now, it would adopt IMRF Form 63A. Its IMRF members would be eligible to convert up to four years of military service to IMRF service. (A governing body may no longer pass a resolution allowing its members to convert up to two years of military service.)
  • If the employer's governing body previously adopted a resolution, it can repeal that resolution.

To learn which resolutions an employer's governing body has adopted, call an IMRF Member Services Representative at 1-800-ASK-IMRF (1-800-275-4673) or review your Employer Access account.

top

Member and employer costs

For military service purchased under P.A. 95-0486, the member cost is calculated using member and “normal” employer contributions plus interest.

Interest rates have also changed over time. IMRF is required to use the rates in effect since the military service was rendered. Currently, the interest rate is 7.50 percent.

The member's first IMRF salary will be used in the calculation.

top

Online spreadsheets to estimate costs

The cost to the member of converting military service to IMRF service varies widely depending on when the military service occurred, when the member began IMRF participation, and the member's salary upon participation.

IMRF has developed spreadsheets that allow you to estimate the total cost for this program, the member cost, and the resulting difference—which is the employer cost. Instructions for using the spreadsheets are included in the spreadsheets themselves.

To download and use these Excel spreadsheets, you need to have Microsoft Excel installed on your computer.

top

Questions

If you have any questions regarding Public Act 95-0486, please call 1-800-ASK-IMRF (1-800-275-4673), Monday through Friday, 7:30 a.m. to 5:30 p.m. or email IMRF.

top

 


If you have questions regarding IMRF, Communicate with Us.

| Home Page | Members | Retirees | Employers | Inactive Members | Publications | Legislation | Find IMRF |
| Employment at IMRF | Board of Trustees| Field Services | About IMRF | Press Room |
| Privacy Policy and Legal Disclaimer | Search IMRF Online |


IMRF Online provides a brief summary of IMRF benefits and the adminstration of those benefits. IMRF members' and employers' rights and obligations are governed by Article 7 of the Illinois Pension Code. Statements in these publications are general, and the Illinois state law governing IMRF is complex and specific. If a conflict arises between information in these publications and the law, all decisions are based on the law.

Copyright © Illinois Municipal Retirement Fund

Page Last Updated by JC on 04.12.2012