6.40 Past Service Credits/Member Account Corrections

5. Omitted Service (IMRF Form "Omitted Service Credit Verification”)

Members who work or have worked in IMRF covered positions but who have never been reported as such may obtain past service A member can receive past service credit for service performed and earnings paid for a period prior to January 1 of the current year (January 1 through December 31). Past service falls into three categories of authorization: Requires Governing Body approval or prior resolution on file: Military leave provided by Illinois Pension Code, Retroactive service for elected officials, Application for prior service IMRF Benefit Protection Leave, and Out-of-state service credit authorization. Requires approval of Authorized Agent: Application for retroactive service credit, Omitted service credit verification, General Assembly application for service, and Certification of Sheriff’s Law Enforcement service. Requires application by member only: Application for reinstatement of service (repay a refund), Military leave provided under Federal law, and Conversion of up to 120 months of Regular plan service to SLEP. credits for the period of omission by submitting IMRF Form entitled,"Omitted Service Credit Verification" and paying the contributions. The application for omitted service must be received by IMRF while the member An employee who works in a position not excluded from IMRF coverage and whose position meets the annual hourly standard for IMRF coverage. For the purposes of an Authorized Agent submitting a petition or casting a ballot in an executive trustee election, an active member also includes an employee receiving an IMRF pension and working in position that does not qualify for IMRF participation or one that provides the employee the option of participating in IMRF, e.g., elected office. is participating in IMRF.  If a member participating in Tier 2 purchases omitted service which changes the member’s earliest participation date to before January 1, 2011, that member will be reclassified as participating in Tier 1.

Payment of member contributions Members who participate in the Regular Plan contribute 4.50% of salary toward a future IMRF pension: 3.75% for the member and 0.75% for a surviving spouse pension. Members who participate in the SLEP plan contribute 7.50% of salary (on and after June 1, 2006) toward a future SLEP pension: 6.75% for the member and 0.75% for a surviving spouse pension. Before June 1, 2006, SLEP members contributed 6.50 percent of salary; 5.75 percent for the member and 0.75 percent for a surviving spouse pension. Members in the ECO plan contribute 7.50 of salary toward a future ECO pension: 6.75% for the member and 0.75% for a surviving spouse pension. is required from the member to establish the omitted service. The member may be eligible to use funds from a traditional Individual Retirement Account (IRA Individual Retirement Account. A tax-deferred retirement account for an individual that permits individuals to set aside up to $2,000 per year, with earnings tax-deferred until withdrawals begin at age 59 1/2 or later (or earlier, with a 10% penalty).) or from another qualified plan or 457 or 403(b) plan A retirement plan that functions like a defined contribution plan and is similar to a 401(k) plan, but is offered by non-profit organizations, such as universities and some charitable organizations, rather than corporations. If you work for a school district or a public hospital, you may be familiar with an Internal Revenue Code Section 403(b) tax-deferred annuity. to purchase the omitted service credit. (See 6.40 C. Member Application and Payments.)

No immediate payment is required of the employer A unit of government that joins IMRF., but the cost will be reflected in future contribution rates.

PLEASE NOTE:

1. Use IMRF Form entitled, "Omitted Service Credit Verification" for a member whose earnings and contributions have never been reported. Refer to the reverse side of the form for specific requirements.

2. Submit an ”Employer’s Report of Adjustment to IMRF Earnings” for a member who was not reported but had contributions withheld or to correct earnings and contributions previously reported to IMRF. Because online transactions are more accurate, more efficient, and faster than submitting member information to IMRF via paper forms, effective March 1, 2009, employers with Internet access must submit wage adjustments via Employer Access.

Go to the Employer Access area to Adjust IMRF Earnings

Members can access this form by visiting the Member Access area on IMRF's website (www.imrf.org).

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