5.10 D. Payment of Separation Refund

IMRF will pay the separation refund A member can receive a separation refund-a return of all his/her member contributions without interest-under certain conditions. If a member takes a refund, the member forfeits all of the service credit he/she earned. after receiving IMRF Form 5.10, ”Application for Separation Refund,” (Member Access refund application or Form 5.10) and the Notice of Termination of IMRF Participation (Employer Access termination or Form 6.41, “Notice of Termination of IMRF Participation). (Employers with Internet access are required to submit member terminations via Online Termination in Employer Access. Employers without Internet access may continue to use paper Form 6.41.)

Payment of all of the member’s contributions on deposit at that time is normally made within two to three weeks after this information is received.

Go to the Employer Access area to Terminate IMRF Participation

If the member is vested for a pension, an estimate of the monthly pension Also known as an annuity. An IMRF pension is paid as long as the member lives. It is increased by 3% of the original amount each year. A member must have at least eight years of service credit and be age 55 to apply for an IMRF pension under the Regular and ECO plans. A member must be age 50 and have at least 20 years of SLEP service credit to apply for a SLEP pension. he or she will forfeit by accepting the refund will be printed on the refund check. The member can reinstate the service credit by returning the uncashed check to IMRF along with a letter requesting the reinstatement If a member takes a separation refund, he or she may be able to repay (with interest) IMRF and reinstate those years of service credit..

After IMRF receives the employer’s ”Monthly Report of IMRF Member Earnings and Contributions” listing the member’s last earnings and contributions, the member will be paid a subsequent refund.

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