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.
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.
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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.
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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.
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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.
- For
Members:
- For
Employers:
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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.
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