6.40 Past Service Credits/Member Account Corrections

8. Out-of-State Service (IMRF Form "Out-of-State Service Credit Authorization”)

Members who rendered service for a local government in another state and participated in a public employee retirement program may receive 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. credit of up to 10 years with their current IMRF employer A unit of government that joins IMRF..

Out-of-state service cannot be established for service to a state government. This includes various state entities, e.g., state universities and colleges, department of transportation, social services, etc.

IMRF Form "Out-of-State Service Credit Authorization" must be filed and:

1. The governing body must adopt an authorizing resolution.

2. 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. must have irrevocably forfeited all benefits in the out-of-state system.

3. The member must have completed two years of contributing service with the current IMRF governmental employer authorizing the out-of-state service.

4. The member must pay IMRF contributions for each month of out-of-state service equal to 10% times the average monthly earnings for the first 24 months of reported earnings with the employer authorizing the out-of-state service. Interest is added to the amount from the end of the two-year qualifying period until the December 31st preceding the current year.

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

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 out-of-state service credit. (See 6.40 C. Member Application and Payments.)

No immediate payment is required by the employer. The cost will be reflected in future employer contribution rates.

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