Members eligible to receive a separation refund when they stop working for their IMRF employer include:
Regular plan members Tier 1
Members under age 55, irrespective of length of service.
Members with less than 8 years of service, irrespective of age.
Members, age 55 or over, who are eligible for a pension of less than $100 a month.
Regular plan members Tier 2
Members under age 62, irrespective of length of service.
Members with less than 10 years of Regular Tier 2 service, irrespective of age.
Members, age 62 or over, who are eligible for a pension of less than $100 a month.
SLEP plan members Tier 1
Members under age 50, irrespective of length of service. However, such members will forfeit the right to a future SLEP pension if they have at least 20 years of SLEP service, or a Regular plan pension if they have at least eight years of SLEP and/or Regular plan service.
Members age 50 but under age 55 with less than 20 years of SLEP service.
Members age 55 or older who have less than eight years of SLEP and/or Regular plan service or who are eligible for a pension of less than $100 per month.
SLEP plan members Tier 2
Members under age 50, irrespective of length of service. However, such members will forfeit the right to a future SLEP pension if they have at least 10 years of service.
Members of any age with less than 10 years of service.
To be eligible for a refund, the member must terminate employment as well as IMRF participation.
The member is not eligible for a refund if he or she will continue working for the same unit of government in a position that is not eligible for IMRF or in a position that will participate in a reciprocal or local police or fire fund.
For example, if a member works for a school district as a teacher’s aide and accepts a licensed teaching position with the same school district, the member is not eligible for a separation refund.
A member who is immediately eligible for a pension of $100 or more (even if it is reduced because of age) cannot receive a refund of IMRF member contributions in lieu of a pension unless the member rolls the refund over into another defined benefit retirement plan to purchase qualifying service credit.
A member who transfers from one IMRF employer to another and continues as an IMRF participant is not eligible for a separation refund.
However, if a gap exists between the termination date for the first employer and the enrollment date for the second employer, and the member’s refund application is received by IMRF during that gap, the member may be eligible for a refund.
A member working for two IMRF employers concurrently must terminate from both to be eligible for a separation refund.