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2011 Revisions to IMRF's Web-Based
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January 2011 (e-Ver. 6.0) Summary of Key Changes:
Detailed changes: |
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| Section 1 | |||||||||||||||||||||
1.10 C. 1. |
Public Act 96-1495 created a second tier of benefits for IMRF’s SLEP Tier 2 plan. Effective January 1, 2011, IMRF will assign a benefit “tier” to an employee when he/she is enrolled in IMRF’s SLEP plan. Members enrolled in IMRF after December 31, 2010, will participate in Tier 1 if the member: • Previously participated in IMRF or in a reciprocal retirement system (except the Judges or General Assembly retirement systems) even if the member took a refund of his or her contributions and has not yet repaid the refund |
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1.40 IMRF Member Service Representatives. |
Effective April 1, 2011, appointments will be required for all walk-in customers, whether for face-to-face counseling sessions, requests for information, completing forms, etc. To schedule an appointment, call 1-800-ASK-IMRF (1-800-275-4673). By scheduling an appointment, the Member Services Representative will be able to provide better service to our walk-in customers, as we will be prepared for the visit. Unscheduled walk-in customers will be served only when the Member Services Representative becomes available. | ||||||||||||||||||||
Glossary - |
SLEP Plan Tier 2: Full retirement age 55 If a member retires between the ages of 50 and 55, the pension is discounted (reduced) one-half percent for each month the member is less than age 55. |
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Glossary - |
ECO Plan Tier 2: Full retirement age 67 If a member retires between the age of 62 and 67 with less than 35 years of service credit, the pension is discounted (reduced) one-half percent for each month the member is less than age 67 or for each month the member has less than 35 years of service, whichever discount is smaller. If a member retires at age 62 with at least 35 years of service credit, there is no reduction. |
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Glossary - |
Under the Regular Tier 2 plan: A member’s highest total earnings up to the wage cap during any 96 consecutive months within the member’s last 10 years of IMRF service divided by 96. Under the SLEP Tier 2 plan: A member’s highest total earnings up to the wage cap during any 96 consecutive months within the member’s last 10 years of IMRF service divided by 96. Usually, this is the average of the last 96 months of service. The earnings considered for each of the last three months cannot be more than 25 percent greater than the highest earnings in any of the first 93 months of the 96 consecutive months. SLEP Tier 2 FRE cap: In 2011, the cap is $106,800. This amount automatically increases annually by the lesser of 3% or by one-half of the increase in the Consumer Price Index (urban) for the preceding 12 months as of September. Overtime earnings for SLEP members are excluded from reportable earnings and are not included in the SLEP FRE. |
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Glossary - |
Members who participate in the Regular Tier 1 and Tier 2 plans contribute 4.50 percent of salary toward a future IMRF pension: 3.75 percent for the member and 0.75 percent for a surviving spouse pension. Tier 2 members do not contribute on wages above the wage cap. |
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Glossary - |
Under the Regular Tier 2 Plan, and Under the Revised ECO Tier 2 plan, • The pension is increased by the lower of 3% or one-half of the increase in the Consumer Price Index for the preceding Under the SLEP Tier 2 plan • A member must have at least 10 years of SLEP service credit and be age 55. • The pension is increased by the lower of 3% or one-half of the increase in the Consumer Price Index for the preceding 12 months as of September. The increase is based on the original pension amount. The annual increase is payable when the member reaches age 60 or receives 12 months of pension payments, whichever occurs later. If the CPI decreases or is zero, no increase is paid. |
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Glossary - |
Members who first join IMRF on or after January 1, 2011, participate in the Regular Tier 2 plan. EXCEPTIONS: Members enrolled in IMRF on or after January 1, 2011, will participate in Tier 1 if the member: • Previously participated in IMRF or in a reciprocal retirement system (except the Judges or General Assembly retirement systems) even if the member took a refund of his or her contributions and has not yet repaid the refund |
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Glossary - |
Tier 2: Members first enrolled in IMRF on or after January 1, 2011, will participate in Tier 1 if the member: • Previously participated in IMRF or in a reciprocal retirement system (except the Judges or General Assembly retirement systems) even if the member took a refund of his or her contributions and has not yet repaid the refund |
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Glossary |
Under Tier 2, a member’s wages are capped at $106,800 (in 2011). The member does not pay any contributions on wages above the cap. The wage cap is also applied when IMRF calculates member benefits. The wage cap increases each year by the lesser of 3% or one-half of the increase in the Consumer Price Index (urban) for the preceding September. | ||||||||||||||||||||
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| Section 3 | |||||||||||||||||||||
3.10 K. |
Charter school staff are not employees of the local school district. Therefore they cannot be members of IMRF. | ||||||||||||||||||||
3.65 A. 600 Hour Standard |
Public Act 96-1495 created a second tier for IMRF SLEP. A member’s participation date determines his or her tier. a. Tier 1: Members first enrolled in SLEP before January 1, 2011: • If a member ever participated in SLEP with any employer before January 1, 2011, that member always participates in Tier 1 even if that member terminated participation and took a refund of contributions. b. Tier 2: Members first enrolled in SLEP on or after January 1, 2011: • A member will participate in SLEP Tier 2 even if that member participated in Regular IMRF Tier 1 or Tier 1 with a reciprocal retirement system. Some SLEP members will be participants in both Regular plan Tier 1 and SLEP plan Tier 2. |
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3.65. F. |
Hours actually spent working should be counted, but hours spent “on call” are not considered when determining the expected hourly requirements of elected positions, nor is time spent traveling from home to meeting sites. | ||||||||||||||||||||
3.65 F. |
Verification of Qualification to Participate. IMRF is not in a position to determine the hourly requirements of members of a governing body. It is the policy of the IMRF Board of Trustees to require that the governing body of the governmental unit determine, by resolution, that the positions require performance of duty for the applicable annual hourly standard before an official in the position participates. The resolution must indicate whether the employer is under the 600-hour or 1,000-hour standard. The IMRF Board requires documentation of the actual hours required for an elected position. This documentation would include office hours, number of meetings held annually, preparation time for meetings, conferences, and other corroboration of the time required to perform the duties of the office. Time spent on-call or otherwise informally available to constituents does not count toward the IMRF hourly standard, nor down time spent traveling to meetings. The unit of government should be prepared to produce the documentation verifying that the hours required meet or exceed the IMRF hourly standard. |
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3.65. F. |
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3.96. A. |
For members participating in the Regular Tier 2 plan, earnings do not include compensation in excess of $106,800 (in 2011). That amount will be increased annually by the lesser of 3% OR one-half of the increase in the Consumer Price Index (urban) for the preceding September. In addition, for members participating in SLEP Tier 2, compensation for overtime is not included in reportable wages. |
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| Section 4 | |||||||||||||||||||||
4.14 A. |
Currently, the member contribution rate for the Regular plan Tiers 1 and 2 is 4.50% (7.50% SLEP [6.50% prior to June 1, 2006], 7.50% ECO Tiers 1 and 2) of all wages. Tier 2 members do not make contributions on wages over the wage cap. |
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4.23 |
• RG01 Regular Tier 1 Regular plan members who first participated in IMRF or a reciprocal system (except Judges and General Assembly retirement systems) before 1/1/2011. • RG03 Regular Tier 2 Regular plan members who first participated in IMRF on or after 1/1/2011. • VA01 Voluntary Additional Tier 1 • VA03 Voluntary Additional Tier 2 • SL01 SLEP Tier 1 SLEP members who first participated in SLEP before 1/1/2011. • SL03 SLEP Tier 2 SLEP members who first participated in IMRF SLEP on or after 1/1/2011. Revised ECO: • EPR1 Revised ECO Tier 1 Members (except sheriffs) who participated in IMRF (in any plan) before January 1, 2011 and joined ECO after January 26, 2000. • EPS1 Revised ECO SLEP Tier 1 Sheriffs who participated in IMRF SLEP before January 1, 2011 and joined ECO after January 26, 2000. • EPR3 Revised ECO Tier 2 ECO members (except sheriffs) who first began participation in IMRF (any plan) on or after January 1, 2011. • EPS3 Revised ECO SLEP Tier 2 ECO sheriffs who first began IMRF SLEP participation on or after January 1, 2011. |
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4.23 B. |
Member Wages, Member Contributions List here for each plan shown (Regular, SLEP, ECO, or Voluntary Additional) the member wages and contributions reported on Form 3.11 (Tier 2 is subject to the wage cap). |
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4.24 B. |
• The member contribution rate for Regular members is 4.50% of wages. (Tier 2 is subject to the wage cap) • The member contribution rate for SLEP members is 7.50% of wages. (Tier 2 is subject to the wage cap) • The contribution rate for ECO members is 7.50% of wages. (Tier 2 is subject to the wage cap) |
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4.25 C. 1. |
IMRF Member Plan Code Tier 1 (text) 4-characters (use a zero ‘0.’ Not the alphabet ‘O’) • If the plan is Regular, use RG01 • If the plan is SLEP, use SL0l • If the plan is Voluntary Additional, use VA01 • If the plan is ECO use: ECR1 ECR2 ECS1 ECS2 EPR1 ERS1 See Paragraph 4.23 for an explanation of ECO codes. Tier 2 • If the plan is Regular, use RG03 • If the plan is SLEP, use SL03 • If the plan is ECO Regular, use EPR3 • If the plan is ECO SLEP, use EPS3 • If the plan is Voluntary Additional, use VA03 |
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4.25 C. 2. |
Also, if you will be reporting a Tier 2 member, you will need to switch to the Excel format. | ||||||||||||||||||||
4.25 C. 2. |
Note: If you will be reporting a Tier 2 member, you will need to switch to the Excel format. | ||||||||||||||||||||
4.35 B. If Your Payroll ..... |
Deleted. | ||||||||||||||||||||
4.35 C. Special Instructions ..... |
Deleted. | ||||||||||||||||||||
4.50 B. IRS Form 8109: ..... |
If the federal income taxes, member and employer Social Security taxes, and member and employer Medicare-only taxes are withheld, you will need to report the amount and make the necessary payments. See “Depositing Taxes” in IRS Pub 15, “(circular E), Employer’s Tax Guide.” • $500 or more per quarter - the employer must deposit the taxes with an authorized financial institution or Federal Reserve Bank. IRS Form 8109, “Federal Tax Deposit Coupon,” must accompany each deposit. The amount owed determines the frequency of deposit. Instructions for the use of Form 8109 are printed on the coupon book and also appear in the instructions to Form 941. |
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4.50 A. |
Form 941C is included in Publication 393, “Federal Employment Tax Forms,” is |
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4.50 B. IRS Form 8109 |
If the federal income taxes, member and employer Social Security taxes, and member and employer Medicare-only taxes are withheld, you will need to report the amount and make the necessary payments. See “Depositing Taxes” in IRS Pub 15, “(circular E), Employer’s Tax Guide.” • $500 or more per quarter - the employer must deposit the taxes with an authorized financial institution or Federal Reserve Bank. IRS Form 8109, “Federal Tax Deposit Coupon,” must accompany each deposit. The amount owed determines the frequency of deposit. Instructions for the use of Form 8109 are printed on the coupon book and also appear in the instructions to Form 941. |
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4.50 C. |
The instructions contained in IRS Publication 393, “Federal Employment Tax Forms,” are |
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4.50 K. |
Illinois Form UC-3/40 is used to report wages and unemployment taxes due for the quarter and is filed with the Illinois Department of Employment Security. (Wages are not reduced by the IMRF contribution.). | ||||||||||||||||||||
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| Section 5 | |||||||||||||||||||||
5.10 A.
New step 4 added, others renumbered. |
4. SLEP plan members Tier 2 a. Members under age 50, irrespective of length of service. However, such members will forfeit the right to a future SLEP pension if they have at least 10 years of service. b. Members of any age with less than 10 years of service. 7. |
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5.10 E. |
A Tier 1 member with eight or more years of any service (Regular and/or SLEP) may receive a pension at age 55 or thereafter. A Regular Plan Tier 2 member with 10 or more years of A SLEP Tier 1 member with 20 or more years of SLEP service may receive a SLEP pension at age 50 or thereafter. A SLEP Tier 2 member with 10 or more years of SLEP service may receive a SLEP pension at age 50 or thereafter. |
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5.20 A. 3. |
If a SLEP member retires with: • Less than 20 years’ SLEP service credit, but eight or more years of SLEP and/or Regular service credit, the service will be combined to determine a Regular plan pension at age 55. |
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5.20 A. 4. Under the SLEP Plan Tier 2 |
a. Age - Member must be at least 50 years old. If the member retires between age 50 and 55, the pension will be reduced by 1/2% for each month he/she is under age 55. b. Service - Member must have at least 10 years of SLEP Tier 2 service. SLEP service is total service as a county sheriff, full-time deputy sheriff or forest preserve ranger, or certain service as a police chief or other qualified SLEP position. (See Section 3.10 for a complete listing of qualified SLEP positions.) SLEP service with more than one SLEP employer is combined. If a SLEP member retires with: SLEP Tier 2 service plus other IMRF service • 10 or more years of SLEP Tier 2 service credit plus other Regular service, the member will receive a SLEP Tier 2 pension plus a Regular plan pension. • Less than 10 years of SLEP Tier 2 service credit but have other Regular service: i. Regular Tier 1 and SLEP Tier 2 ii. Regular Tier 2 and SLEP Tier 2 |
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5.20 B. 1a. |
Under Tier 2, the final monthly rate of earnings is the sum of the highest total earnings (under the wage cap) during any 96 consecutive months within the last 10 years of service divided by 96. | ||||||||||||||||||||
5.20 B. 2a. |
A Tier 1 SLEP plan pension is based on the member’s length of SLEP service and final rate of earnings. The final rate of earnings is the highest total earnings during any 48 consecutive months within the last 10 years of service divided by 48. A Tier 2 SLEP plan pension is based on the member’s length of SLEP service and final rate of earnings. The final rate of earnings is the highest total earnings under the wage cap during any 96 consecutive months within the last 10 years of service divided by 96. Those 48 or 96 months (as appropriate) can include the month after the member’s last day of work, if the member receives his or her final paycheck in that month. In that case, the member could still receive a SLEP pension for that month. The total pension at retirement cannot exceed 80% of the member’s final rate of earnings (reached after earning 32 years of SLEP service) for SLEP Tier 1. SLEP Tier 2 maximum pension is 75% of the member’s final rate of earnings (after 30 years of service). Note: SLEP Tier 2 pensions are reduced ½% for each month a member is under age 55 at retirement. |
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5. 20 B. 9 |
If a SLEP Tier 2 member retires between the ages of 50 and 55, the pension will be reduced by 1/2% for each month the member is under age 55. If the member retires under ERI, the IMRF ERI does not alter the existing pension reduction if a member retires before age 55. This reduction will apply if the member’s ERI enhanced age is less than 55. For details on IMRF's ERI, see 5.20 C. IMRF Early Retirement Incentive (ERI). |
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5. 20 B. 12. b. |
If a Regular Tier 2 member or ECO Tier 2 member retires under age 67, he or she will receive the annual increase the January 1 following the date he or she reaches age 67, or has received 12 months of pension payments whichever is later. Thereafter, the pension will be increased annually each January 1. If a SLEP Tier 2 member retires under age 60, he or she will receive the annual increases the January 1 following the year the member reaches age 60 or receives 12 months of payments, whichever is later. Thereafter, the pension will be increased annually each January 1. |
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5.20 C. 3. |
If a member participates in the SLEP Tier 2 plan: SLEP Tier 2 members have the same ERI eligibility requirements as other plan members, except they are eligible to retire at age 50 with 20 years of SLEP service. However, the normal retirement age for SLEP Tier 2 is age 55. If a SLEP member retires under age 55, the under age 55 reduction will apply. |
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5.30 B. 1 a. |
Upon the death of a member in participating status who has at least one year of IMRF service credit or dies because of a job related injury, the death benefit is a lump sum payment consisting of an amount equal to the member’s average annual earnings (subject to wage cap for Tier 2) plus a refund of the balance of the member’s account (IMRF member contributions with interest less any benefit prepayment). The average annual earnings are normally equal to the total earnings (subject to wage cap for Tier 2) of the member during the 12 months immediately preceding the date of death. | ||||||||||||||||||||
5.40 B. 1 |
The amount of a member’s disability benefit is based upon his or her average monthly earnings subject to the wage cap for Tier 2 members. To calculate the average monthly earnings, IMRF totals the member’s earnings for the 12 consecutive months prior to the month in which he or she became disabled then divides that amount by 12; the result equals the member’s average monthly earnings subject to the wage cap for Tier 2 members. The amount IMRF pays as a disability benefit depends on whether the member receives Social Security benefits, workers’ compensation (including occupational disease), and/or outside benefits. The minimum amount the member can receive from all five sources is 50% of the member’s average monthly earnings subject to the wage cap for Tier 2 members. The member’s original salary subject to the wage cap for Tier 2 members, not the disability benefit amount, is used to determine the member’s final rate of earnings (FRE) and to calculate a retirement benefit. If because of a disability, a member has reduced earnings when he or she stops working, the amount of disability benefits will be calculated based on the member’s salary (subject to the wage cap for Tier 2 members) for the last year of regular employment. |
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| Section 6 | |||||||||||||||||||||
6.05 |
Tier 2: Members first enrolled in IMRF on or after January 1, 2011 EXCEPTIONS: Members enrolled in IMRF on or after January 1, 2011, will participate in Tier 1 if the member: • Previously participated in IMRF or in a reciprocal retirement system (except the judges or General Assembly retirement systems) even if the member took a refund of his or her contributions and has not yet repaid the refund, |
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6.20 C. |
Members wishing to change the amount withheld or stop making voluntary additional contributions would also complete Form 6.30. A participating member may stop making voluntary additional contributions at any time. Members wishing to request a refund of their VA contributions must file a Form VARF, "Request for Refund of Voluntary Additional Contributions." |
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6.30 2. f. |
NOTE: The member must have worked in the position for at least 600 or 1,000 hours (as applicable) in order for the salary of that position to be used as the final earnings. | ||||||||||||||||||||
6.40 4. Retroactive |
NOTE: Purchase of retroactive service will NOT make a Revised ECO Tier 2 member eligible for Revised ECO Tier 1. | ||||||||||||||||||||
6.40 4. f. |
If an elected official participating in Revised ECO Tier 2 purchases retroactive service from a period prior to January 2011, it will not qualify them for Revised ECO Tier 1. | ||||||||||||||||||||
6.60 D. |
Elected officials (and city hospital workers) have the option of participating in IMRF. For an elected official to participate in IMRF, his or her governing body must submit a resolution confirming that the elected official’s position meets the governmental unit’s hourly standard (600 or 1,000 hours a year), and be prepared to document the time actually required to perform the duties of the office. | ||||||||||||||||||||
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| Section 9 - Appendix | |||||||||||||||||||||
Appendix A-2 is all new. |
Each year the Reportable Wage Cap will be updated and shown in the table below.
Under Tier 2, a member’s wages are capped at $106,800 (in 2011). The member does not pay any contributions on wages above the cap. The wage cap is also applied when IMRF calculates member’s benefits. The wage cap could automatically increase each year by the lesser of 3% or one-half of the increase in the Consumer Price Index (urban) (CPI-U) for the preceding 12 months as of September. If the CPI-U decreases or is zero, no increase is paid. |
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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.
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Page Last Updated by CC on 03-04-11