5.20 C. IMRF Early Retirement Incentive (ERI)

16. Return to work for an IMRF employer prohibited

Once a member begins receiving an IMRF pension, he or she must contact IMRF if the member returns to employment or compensated elected office with a unit of government that participates in IMRF. This applies even if the member is considering independent contract work with a unit of government or work covered by another retirement plan (for example, as a teacher).

If a member retires under the ERI and he or she returns to work for any IMRF employer in any capacity, he or she will:

1. Lose the ERI enhancements and

2. Pay IMRF the difference between the ERI enhanced pension and the pension the member would have received without the ERI less the amount the member paid for the ERI.

If the member would not have been entitled to a pension without an ERI, i.e., the member was less than age 55 at retirement:

1. He or she would be required to repay IMRF for all pension payments received up to age 55 less the amount the member paid.

2. When the member again retires, the member's pension will be recalculated without the enhancements.

In addition, if a member returns to work for an IMRF employer in a position that is covered by IMRF but is not enrolled immediately, he or she will be required to pay IMRF any missing member contributions Members who participate in the Regular Plan contribute 4.50% of salary toward a future IMRF pension: 3.75% for the member and 0.75% for a surviving spouse pension. Members who participate in the SLEP plan contribute 7.50% of salary (on and after June 1, 2006) toward a future SLEP pension: 6.75% for the member and 0.75% for a surviving spouse pension. Before June 1, 2006, SLEP members contributed 6.50 percent of salary; 5.75 percent for the member and 0.75 percent for a surviving spouse pension. Members in the ECO plan contribute 7.50 of salary toward a future ECO pension: 6.75% for the member and 0.75% for a surviving spouse pension. that should have been reported to IMRF from the start of his or her employment. Note that as of January 1, 2021, enrollment will not be required and contributions will not be collected until the retiree actually works the applicable hourly standard. Regardless, however, of the amount of hours worked, the ERI retiree's pension must be suspended during employment at the ERI enhancement revoked.

A member may retire under ERI only once. For example, a member retires under ERI and returns to work for an IMRF employer. If that employer adopted ERI, the member would not be eligible to retire under it.

Exception

A member who retired under ERI can hold an elected position eligible for participation in IMRF and continue to receive his or her ERI pension if the member chooses to not participate in IMRF and the member's pension is not based on any service earned in that position during any term of office.

You can also refer to Exhibit 5R, Return to Work and Effect on Tier 1 and Tier 2 Members Chart.

Related Topics