6.40 Introduction to Past Service Credits/Member Account Corrections

Past service credits are granted for service performed and earnings paid in a time period prior to January 1 of the current calendar year. The current calendar year is defined as the period between January 1 and December 31.

Gaps in service credit can create problems for members who apply for IMRF benefits. Some examples of problems which can occur are:

1. Denial of disability benefits While receiving IMRF temporary or total and permanent disability benefits, a member earns service credit and has the same death benefit protection as if he or she were working. (see paragraph 5.40 Disability Benefits).

2. Denial of retirement benefits (see paragraph 5.20 Retirement Pensions).

3. Delay in benefit processing.

Occasionally, a member may wish to purchase a month(s) of past service which results in the member having concurrent service Concurrent service is earned in one of three ways: (1) A member is reported under the same IMRF plan by two or more employers. The member will earn only one total month of service credit for each month worked, regardless of the number of positions held, and the member's wages are combined for the calculation of benefits. If the concurrent service occurs during the member's "final rate of earnings" (FRE) period, it can increase the amount of his or her pension. Based upon the total earnings reported, the service credit for the concurrent month(s) is "allocated" between/among employers. (2) A member is reported under different IMRF plans by one or more employers. The member earns one month of service credit, but the salaries are not combined. The member’s wages are recorded separately under each plan for the calculation of benefits. However, if a member is reported concurrently under the Regular Plan and SLEP and vests for a SLEP pension, each concurrent month will be treated as a month in two plans. When the member’s pension is calculated, the calculation will apply the Regular plan formula to those months with Regular wages and the SLEP formula to those months with SLEP wages. (3) A member is reported under two or more revised Elected County Official positions. The member will earn one month of service credit for each Revised ECO position he or she holds. In addition, the member's wages are recorded separately under each position for the calculation of benefits. (A revised ECO plan member must hold the same elected county position in the same county for a minimum of eight years to qualify for the Revised ECO retirement formula.). Concurrent service occurs when a member is reported by more than one employer and/or under more than one plan in a single month. This may or may not be beneficial to the member. Refer to 6.40 C. 2. Concurrent service resulting from past service purchase for details.

Information for Members

IMRF developed a booklet for members, ”Purchasing Past Service from IMRF,” which explains the past service purchase process, including a explanations of the types of past service, requirements for each, and how to purchase.

Members can obtain the ”Purchasing Past Service from IMRF” booklet by contacting IMRF or by downloading a copy from the IMRF Website, www.imrf.org.

Learn more about past service credits from the topics below:

1. Types of Past Service Credits/Member Account Corrections

2. A. General Requirements for Past Service Applications

3. B. Authorization

4. C. Member Application and Payments

5. D. Account Corrections Due to Court Order/Settlement of Litigation/Grievance Resolution