IMRF Regular Plan--An overview of the program

The following information provides an overview of how IMRF is organized and operates.

You can download a printable PDF version of the IMRF Regular Plan Benefits booklet here. This information is in a single printable document instead of spread across many pages. You will need the free Adobe Acrobat Reader to view this file.

Table of contents:

• How the IMRF program operates locally
• IMRF members covered and exceptions
• Contributions
  • Voluntary additional contributions
  • Refund of contributions
• Service Credit
• Retirement Benefits
  • Early Retirement Incentive
  • Reciprocal Illinois public pension systems
• Disability
• Death
• Divorce

How the IMRF Program of benefits operates locally

IMRF serves more than 2,800 employers including cities, villages, counties, school districts, townships and various special districts, such as parks, forest preserves and sanitary districts. Although total participation exceeds 160,000 active members, IMRF is a local program. Each employer builds up an account to provide future benefits for its own employees.

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IMRF members covered

You are required to participate in IMRF if you work for an IMRF employer in an IMRF qualified position. An IMRF qualified position is one that will equal or exceed your employer's annual hourly standard; the standard is either 600 or 1,000 hours a year:

• All school and special education districts are under an annual hourly standard of 600 hours
  
• All other IMRF employers that joined IMRF
  • on or before January 1, 1982, can elect the “1,000-hour standard” for newly hired employees.
  • after January 1, 1982, chose an hourly standard at that time. That hourly standard cannot be changed.
    
• The expected annual hourly requirement of your position determines whether or not you are eligible to participate in IMRF.
  
• The actual hours you work may be more or less than the hours your position is expected to work.

Exceptions to IMRF membership

Previous employment - If you earned service credit with any IMRF employer prior to January 1, 1982, you are grandfathered under the 600-hour standard. This means that you must be enrolled in IMRF if your position is expected to work 600 hours or more in a 12-month period. This is true even if your employer is under the 1,000-hour standard.

City hospital employees - If you are a city hospital employee, you have the option of participating in IMRF if your position meets the eligibility requirement. To participate, you must file a written election (IMRF Form 6.21, "Election to Participate for Qualifying Position," with IMRF. The election to participate cannot be revoked.

Elected officials - If you are an elected official, you have the option of participating in IMRF if your position meets the eligibility requirement. To participate, you must file a written election with IMRF. The election to participate cannot be revoked. In addition, the governing body must file a resolution with IMRF certifying that your position meets the annual hourly standard.

If you are an elected county official and your position meets the eligibility requirements, you have the option to participate in the ECO plan if your county adopts the plan.

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What employers contribute

Employer contributions are not credited to individual member accounts. An employer's contribution consists of:

• Most of the pension costs for its members who reach retirement.
• All of the costs for the Supplemental Benefit Payment ("13th payment")
• Most of the costs for survivors' pensions.
• All of the costs for disability benefits.
• All of the costs for death benefits.

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What members contribute under the Regular Plan

You contribute 4.5% of your salary: 3.75% for your Regular IMRF pension and 0.75% for a surviving spouse pension.

Your contributions are tax deferred; they are not subject to either federal or Illinois income tax when paid to IMRF. They are subject to federal income tax, but not Illinois income tax, when you receive your contributions as a refund or as a pension or death benefit. This tax treatment is provided under the 414(h) tax deferral plan effective July 1, 1984, for all IMRF employers and adopted earlier by some employers.

If you made contributions before your employer adopted a 414(h) plan, those contributions were taxed at the time you made them. They are not taxable when you receive them as a refund, pension or death benefit.

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