Special Memo 317

On April 14, 2010, the governor signed Senate Bill 1946 (Public Act 96-0889). This new law creates a second tier of IMRF benefits for members who are first enrolled in IMRF on or after January 1, 2011.

This public act also created a second tier of ECO benefits for elected county officials who are first enrolled in IMRF on or after January 1, 2011, and who elect to participate in ECO.

This new law does not affect elected county officials currently participating in ECO or elected county officials who ever participated in IMRF or in a reciprocal system prior to the effective date of this legislation. These members remain in Tier 1.

This new law made no changes to benefits payable to current members of IMRF’s Sheriff’s Law Enforcement Personnel (SLEP) plan. However, if a county sheriff is newly enrolled into IMRF on or after January 1, 2011, and elects to participate in ECO, he or she will participate in ECO Tier 2.

IMRF created a chart that provides a comparison between ECO Plan Tier 1 and Tier 2.

Estimated impact of Tier 2 on employer contribution rates
The normal cost for ECO Tier 2 will be less than the current normal cost of 17.24%. The impact of ECO Tier 2 on an individual employer’s rate will depend on the number of ECO Tier 2 members in its workforce.

Employers will see the impact of ECO Tier 2 beginning with their 2013 rates. The 2013 ECO plan rate will be a blended rate covering both ECO Tier 1 and Tier 2 members.

Analysis continues
IMRF continues to analyze this legislation and work with our sister reciprocal systems to ensure consistent interpretation. IMRF will be updating our communications to reflect this new Tier 2. There has been discussion that the General Assembly may work on a “trailer bill” that could include technical corrections and which may impact the current provisions of this new tier.

Questions?
If you have any questions, please call an IMRF Member Services Representative at 1-800-ASK-IMRF (1-800-275-4673) 7:30 A.M. to 5:30 P.M., Monday through Friday or send IMRF a Secure Electronic Message.