Before an employer can adopt an ERI and in order to utilize the ERI as a budgeting tool, the employer must have IMRF prepare an actuarial cost estimate.
The cost estimate must be based on the same time period as the ERI being considered by the governing body. If the employer does not know when it will offer the ERI, the employer's IMRF Field Representative can prepare multiple cost estimates each using a different time period.
After reviewing the cost estimate, the governing body would pass a resolution or ordinance adopting the ERI. (See Exhibit 6KK, Form 6.77, "Suggested Form of Resolution to Adopt IMRF Early Retirement Incentive.")
Download and Print Form 6.77
If an employer submits the ERI resolution without a cost estimate, IMRF will not implement the program, and the employer will need to both conduct the cost estimate and adopt a second resolution.
Dissolving employers
If an employer is aware or has reason to be aware of its future dissolution under state law, the process of adopting an ERI has changed. If an employer is dissolving, and its IMRF assets and liabilities will be transferred to:
One successor unit of government:
The dissolving employer must provide the ERI Cost Study to the successor, and the successor must also approve the ERI. A copy of the successor unit's resolution approving the ERI must be available to IMRF upon request.
More than one successor unit of government:
The dissolving employer must provide the ERI Cost Study to each successor unit, and a majority of the successors must approve the ERI. Copies of the successor units' resolutions approving the ERI must be available to IMRF upon request.
No successor unit of government and the law does not specify responsibility for the IMRF assets and obligations:
The IMRF Board of Trustees must approve the ERI.
The ERI is available for one year from the program effective date.
If an employer adopts the program, the ERI applies to all eligible IMRF members, regardless of the position held or length of service with the unit of government. The ERI would also apply to elected officials participating in IMRF.
Note: Although an employer may believe that it knows which/how many of its IMRF members will retire under the ERI, it is possible that other members may also be eligible. A member may have previous IMRF service credit with a former employer, a separation refund he or she plans to repay, past service credit he or she plans to purchase, etc.