If you retired under Tier 1

Your pension will be increased by 3 percent of your original pension amount on January 1 of each year. You can find the amount of your increase on your Certificate of Benefits. This increased amount does not change and is not compounded; that is, it is always 3 percent of your original pension amount, not 3 percent of your current pension payment.

Example:

A pension of $200 per month with an effective date of January 1, 2000.

The increase on January 1, 2001 and each January 1 thereafter will be $6 ($206 total).

$200 x 3% = $6 (3% of the original amount)

The increase of January 1, 2002 will also be $6, making the total pension payment $212.

If you retire partway through a year

If you retire after January 1 of a given year, your 3 percent increase will be prorated.

Example:

A pension of $200 per month with an effective date of March 1, 2000.

The increase on January 1, 2001 will be $5

$200 x 3% = $6 (3% of original pension amount)

$6 increase divided over 12 months = $0.50/month

$0.50 is deducted for each of the two months of 2000 you were not retired:

$6 - $0.50 - $0.50 = $5

The increase each January 1 thereafter will be $6.

$200 x 3% = $6 (3% of the original amount)

 

If you retired under Tier 2

Your IMRF pension is paid as long as you live. If you retire under the Regular Tier 2 plan, annual increases begin once you reach age 67, or after you receive one year of benefit payments, whichever is later. It is then 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.