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.
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.
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.
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.
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.
If you have questions regarding IMRF, Communicate with Us.
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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 FundPage Last Updated by JC on 04.12.2012