4.14 A. IMRF Employer and Tax-Deferred Member Contributions

The employer and member IMRF contribution rates are applied to the member’s IMRF wages as described in 3.96 Introduction to Earnings for IMRF Purposes.

Member contributions

Currently, the member contribution rate for the Regular plan Tiers 1 and 2 is 4.50% (7.50% SLEP, 7.50% ECO Tiers 1 and 2) of all wages. Tier 2 members do not make contributions on wages over the wage cap. Also, SLEP Tier 2 members do not make contributions on overtime.

Member contributions cannot be attached, garnished, assigned, or seized by any creditor, even if the member declares bankruptcy. Members cannot borrow from their member contributions on deposit, nor can they use their member contributions as collateral for a loan.

Members with more than 40 years of service credit

IMRF members obtain the maximum Regular Tier 1 and Tier 2 retirement benefit after earning 40 years of service credit:


x 15 years

= 25%


x 25 years

= 50%



   75% (maximum pension earned)


If a member has 40 or more years of IMRF service credit, he or she can elect to stop making IMRF contributions, even if the member’s position meets the annual hourly standard. The election is irrevocable. He or she would be considered an active IMRF member. IMRF service credit would not increase, nor would the member’s final rate of earnings. However, the member would have the same IMRF death and disability benefit protection as contributing members. (See 6.20 D. Election to Cease Making IMRF Contributions)

If a member has 40 or more years of IMRF service credit and elects to stop making IMRF contributions, that member would not be eligible for an IMRF retirement benefit until he or she terminates IMRF participation.

Employer contributions

The employer IMRF contribution rate is computed separately for each employer every year. Employer contributions pay a portion of the cost of retirement pensions, surviving spouse pensions, death benefit coverage, and disability benefits.

If the employer rate times the monthly payroll is not sufficient to cover the required paydown of the employer’s pension obligation, a minimum monthly employer contribution may be charged. The minimum employer contribution would be shown on the ”Final Rate Notice” (Exhibit 4A) and on the Wage Report Summary.

Employers are also required to immediately pay that portion of the present value of a pension attributable to earnings increases exceeding the greater of 6% or 1.5 times the increase in the CPI-Urban as of the previous September. This applies to earnings increases paid on or after January 1, 2012, to members retiring on or after February 1, 2012. See 7.20 E. Accelerated Payment.

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