IMRF Death Benefits: Regular Tier 2 Plan

The information on this page applies to participants of IMRF’s Regular Tier 2 Plan only.

Table of contents:

• Factors determining death benefit amount
• Death is job-related
• Death is not job-related
• Surviving spouse death benefits

Factors determining a death benefit amount

The amount payable as an IMRF death benefits is dependent upon the member's years of service credit and participation status.

IMRF members do not contribute toward the cost of their IMRF death benefit. Such benefit is paid entirely by IMRF employers.

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Death is job-related

If you are currently participating in IMRF Regular Tier 2 plan:

If you die while participating in the IMRF Regular Tier 2 plan, on seasonal leave or on IMRF Benefit Protection Leave, and your death is job related, a lump sum death benefit is paid to your beneficiary(ies) regardless of your years of service credit.

The lump sum is equal to one year's earnings (up to the wage cap) plus any balance in your member account*.

If you are currently participating in IMRF's Regular Tier 2 Plan and have:

• Less than one year of service credit, your member contributions (less any benefit prepayments) are refunded to your beneficiary(ies).
• More than one year of service credit, a lump sum death benefit is paid to your beneficiary(ies). The lump sum is equal to one year's earnings (up to the wage cap) plus plus any balance in your member account*.
• 10 or more years of service credit (are vested), your surviving spouse may choose a 66-2/3% monthly surviving spouse pension plus a $3,000 payment, instead of a lump sum death benefit (one year's earnings (up to the wage cap) plus any balance in your member account).

If you are no longer participating in IMRF but have contributions on deposit, and you are:

• Younger than 62 years old or have less than 10 years of service credit, the balance in yourmember account* is paid to your beneficiary(ies).
• at least 62 years old with least 10 years of service credit, your surviving spouse may be eligible to choose a 66-2/3% monthly surviving spouse pension plus a $3,000 payment, or a lump sum death benefit of the balance in your member account*.

* Your member account includes your member contributions plus interest, less any benefit prepayments

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A member’s automatic beneficiary is the member’s estate. If you are vested, married or in a civil union, and have no valid beneficiary form on file, a lump sum death benefit will be payable to your estate, and your surviving spouse may not be able to choose a surviving spouse pension.

If you name your spouse as your primary beneficiary and you later divorce, your former spouse is no longer considered a beneficiary. If you want any other arrangement, you must file a new designation of beneficiary.

The amount of the surviving spouse benefit for the Regular Tier 2 plan is 66-2/3% of the member's pension.

Surviving spouse pensions under Tier 2 are

• Increased each January 1 by the lower of 3% or one-half of the increase in the Consumer Price Index (urban) for the preceding year of the original amount. If the CPI decreases or is zero, no increase is paid.
• Payable for the lifetime of the surviving spouse, even if the spouse remarries.

If the surviving spouse is under age 60, IMRF will advise the spouse of the amounts payable to him or her under both the Standard (straight life) plan and under the Optional payout. (The Optional payout provides an increased benefit up to age 62 and a reduced benefit thereafter. Calculations of the Optional payout will vary and can be computed on an individual basis only.)

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