Transferring Service Credit Under P.A. 95-0530

On August 28, 2007, the governor signed Senate Bill 65 (Public Act 95-0530) into law.

• Certain members of the State Employees Retirement System (SERS) alternative formula plan to transfer up to five years of their IMRF SLEP service into SERS
• If you are are member of IMRF and have less than eight years of local police pension fund service, you could transfer your police pension fund service into IMRF
• If you are a member of a local police pension fund, you could transfer up to seven years and 11 months of IMRF service into your police pension fund
  

The application window for transfers to and from local police pension funds closed on December 31, 2007. No deadline exists for transfers to SERS.

Transfers to State Employees’ Retirement System

Former IMRF members who participated in SLEP but now participate in SERS as a state police officer, conservation police officer, or, investigator for Secretary of State may transfer their IMRF SLEP service to SERS. SERS can accept up to five years of transferred service. They can also reinstate their refunded SLEP service as at a reduced interest rate.

To transfer the service, the member would complete IMRF Form 6.92, “IMRF Transfer to State Employees Retirement System (SERS Alternative Retirement Formula Plan) Under Public Act 95-0530.”

The member can apply for this transfer at any time; there is no deadline for application.

If the member took a refund of his or her IMRF service credit, the member can repay the refund at a reduced interest rate and reinstate the service. The former member can indicate that he or she has service to reinstate on Form 6.92.

The member’s cost to reinstate the service will be calculated using a reduced interest rate of 6% (instead of the normal 7.50%). Once the member receives a Past Service Payment Schedule from IMRF, he or she can repay the refund at any time in order to transfer the service; no deadline exists for repayment of the refund.

However, if the member reinstates the SLEP service at the reduced interest rate, the reinstated service must be transferred to SERS; it cannot remain on deposit with IMRF.

Questions