All past service shown on the application must have been rendered in an IMRF covered position. Credits cannot be granted for service in a position which at the time of service did not qualify for IMRF coverage.
All applications for service credits must be received while the member is in an active IMRF status (contributing, on authorized IMRF Benefit Protection Leave, on seasonal leave, or receiving disability benefits). Certain kinds of past service applications can be accepted if the applicant is actively participating in a retirement system under the Retirement Systems Reciprocal Act (See 5.50 Reciprocity).
Payment for service credits must be received while the member is in an active IMRF status. However, one final payment may be made after termination. That one payment may affect retirement claims and the time needed to pay the benefit. Reciprocal members need to have a minimum of 12 months of IMRF service credit for their service to be considered and used for service credit under the Reciprocal Act.
The entire payment is credited to the member’s account as contributions. The interest charged represents the amount of interest that would have accumulated on the contributions had they been on deposit with IMRF. The interest that is included in the payments by the member for past service credits is not tax deductible.
If a member purchases service through IMRF’s Unit Payment System (see 6.40 C. Member Application and Payments), those payments are recorded as previously taxed (after-tax) member contributions. The contributions and interest are not deductible for federal income tax purposes. However, they are considered an additional cost of the member’s retirement pension. When the member retires, that cost will be recovered (paid to the member tax free).
If a member uses tax-deferred funds from an eligible rollover, e.g., another qualified plan or a traditional IRA, Roth IRA, 457 or 403(b) plan, the past service payment is recorded as tax-deferred member contributions. The member must contact IMRF before payment is made to determine if a rollover is possible. (IMRF Form entitled, “Request for Rollover Approval for Past Service.”)
Members can access this form by visiting the Member Access area on IMRF's website (www.imrf.org).
If the member expects to retire within one year of submitting the past service application, the expected retirement date should be indicated on all forms submitted to IMRF. Any adjustments to a member’s account should be submitted early to provide ample time to expedite retirement pension requests. |