3.96 I. Severance Pay, Retirement Pay, And Retirement Incentives

Payments made to an employee during the employment relationship and through the first calendar month after termination of employment for retirement or termination pay or as a retirement incentive are IMRF earnings.

Payments made after the first calendar month after termination of employment do not constitute IMRF earnings regardless of what they are or when they were earned or when the agreement was made to make the payments.

For example, if a member terminates on June 15 but is paid in July, those earnings are reportable to IMRF. However, if the member is paid in August (or later), those earnings are not reportable to IMRF.

If an employer pays the member cost for the IMRF Early Retirement Incentive (ERI), that payment is not considered IMRF earnings. For more information, see 6.60 O. For Employer Pick-Up (Payment) of Member Contributions.