The IMRF Early Retirement Incentive (ERI) is a permanent part of the IMRF benefit program. It is a tool IMRF employers can use, if and when they need it, to save fringe benefits and payroll costs by providing an incentive for long-term members to retire.
In order to save money with an ERI, employers are encouraged to either replace no more than 80% of members electing to retire under the program, or to reduce replacement staff salaries to no more than 80% of current salary levels.
Eligible members can purchase between one month and five years of age and service credit for the purpose of determining retirement benefits.
The ERI provides flexibility for employers by allowing the employer to determine the timing of member terminations. However, if a member requests to retire before July 1st so he or she will be eligible to receive the following year's Supplemental Benefit Payment (13th check), the employer must allow the member to do so.
Members may terminate up to a year from the effective date of the employer's ERI program.
The employer cost of adopting the ERI can be paid for over a period of no more than 10 years. (See 5.20 C. 8 Subsequent ERI Offerings.) If an employer adopts the program, the ERI applies to all IMRF members, including elected officials participating in IMRF.