1.90 Glossary of Terms

403(b) plan

A retirement plan that functions like a defined contribution plan and is similar to a 401(k) plan, but is offered by non-profit organizations, such as universities and some charitable organizations, rather than corporations. If you work for a school district or a public hospital, you may be familiar with an Internal Revenue Code Section 403(b) tax-deferred annuity.

414(h)

Under Section 414(h) of the Internal Revenue Code, members make their contributions to IMRF on a tax-deferred basis. The member does not pay either federal or Illinois income tax on the money used to pay the contributions. A member’s contributions will be subject to federal income tax, but not to Illinois income tax, when he or she receives them as a refund or as a pension or when the member’s beneficiary(ies) receives them as a death benefit.

This tax treatment is provided under the 414(h) tax deferral plan effective July 1, 1984, for all IMRF employers and adopted earlier by some employers.

If a member made contributions before his or her employer adopted a 414(h) plan, those contributions were taxed at the time the member made them. They are not taxable when the member receives them as a refund or pension or when the member’s beneficiary(ies) receives them as a death benefit.

457 plan

A tax-exempt deferred compensation program that functions like a defined contribution plan and is made available to employees of state and federal governments and agencies. If you work for an IMRF employer other than a school district or public hospital, you may be familiar with a 457 deferred compensation plan.

Active member

See ”participating member.”

Actuary

A statistician who estimates future funding needs based on rates of mortality, disability, turnover, ages at retirement, rate of investment income, and salary trends.

Amortization period

One of the pieces of information an actuary uses to calculate an IMRF employer contribution rate. Generally, each IMRF employer (unit of government) has an unfunded liability due to ”prior service” of employees when the employer joined IMRF and due to benefit increases. (Prior service refers to the years and months an employee worked for a unit of government before that unit joined IMRF, assuming the position the employee held qualified for IMRF).

The unfunded liability is the estimated cost of retirement benefits earned to date that have not been funded. That is to say, the employer has no assets with IMRF to pay those benefits. A portion of the unfunded liability must be paid each year; the portion is determined by the employer’s structure.

For most employers, the unfunded liability is amortized over a 20-year closed period in 2023 reducing to 15 years, and then rolling at 15 years. Participating instrumentalities (employers without taxing authority) amortize their unfunded liabilities over a 10-year open period.

Annuitant

A person receiving an IMRF pension or surviving spouse pension.

Annuity

See ”pension.”

Authorized Agent

The employee designated by the employer (unit of government) to administer IMRF locally. Authorized Agents submit information to IMRF via the web through Employer Access.

Beneficiaries

The individual(s) or organization(s) a member chooses to receive his or her IMRF death benefits. The default beneficiary for a member is his or her estate. If a member wants any other arrangement, he or she must submit a Designation of Beneficiary form.

Beneficiary Annuity

A death benefit payment option; a lifetime annuity purchased with the lump sum death benefit similar to an annuity purchased from an insurance company. The monthly amount payable is based upon the beneficiary's age.

Civil Union

Under Illinois law the same rights of marriage apply to parties of a civil union. Therefore, the partner of a member who enters into a civil union will have the same rights as a spouse of a married member. A civil union partner will be eligible to receive an IMRF Surviving Spouse pension if the partner meets the eligibility requirements. See General Memo 613 for details.

Conduit IRA

An IRA account which holds a rollover from a qualified pension plan (like IMRF) and to which other money has not been added.

Concurrent service

Concurrent service is earned in one of three ways:

1. A member is reported under the same IMRF plan by two or more employers.

The member will earn only one total month of service credit for each month worked, regardless of the number of positions held, and the member’s wages are combined for the calculation of benefits. If the concurrent service occurs during the member’s ”final rate of earnings” (FRE) period, it can increase the amount of his or her pension. Based upon the total earnings reported, the service credit for the concurrent month(s) is ”allocated” between/among employers.

2. A member is reported under different IMRF plans by one or more employers.

The member earns one month of service credit, but the salaries are not combined.  The member’s wages are recorded separately under each plan for the calculation of benefits.  However, if a member is reported concurrently under the Regular Plan and SLEP and vests for a SLEP pension, each concurrent month will be treated as a month in two plans. When the member’s pension is calculated, the calculation will apply the Regular plan formula to those months with Regular wages and the SLEP formula to those months with SLEP wages.   

3. A member is reported under two or more revised Elected County Official positions.

The member will earn one month of service credit for each Revised ECO position he or she holds. In addition, the member’s wages are recorded separately under each position for the calculation of benefits.

Covered position

See ”qualified position.”

Creditable service

Also known as service credit, service or pension credits. The total time as an IMRF member. Service is credited monthly while a member is working, when on an IMRF authorized leave of absence, or receiving disability benefits.

Defined Benefit Plan

Defined Benefit Plans (like IMRF) pay a monthly pension based upon the member's salary and length of service. As its name implies, an IMRF member's retirement benefits are ”defined” in advance so he or she knows what the member will receive when the member retires.

The benefit is determined by a formula calculation that includes a member’s age, years of service credit, and salary history. The pension continues to improve monthly because it is tied to the member's length of service. The benefit is guaranteed, and is paid for as long as the member lives.

Defined Contribution Plan

Under a defined contribution plan, the future retirement benefit is based upon how much the participant contributed and the earnings made on those contributions.

Employees of a school district or hospital may be familiar with a Section 403(b) tax-deferred annuity. Employees of other IMRF employers may be familiar with a 457 deferred compensation plan.

These plans function like defined contribution plans. However, in a pure defined contribution plan, the employer also makes contributions.

Direct Deposit

Direct Deposit allows IMRF to electronically deposit a pension payment or total and permanent disability benefit into the member’s bank or other financial institution.

Disability benefits

While receiving IMRF temporary or total and permanent disability benefits, a member earns service credit and has the same death benefit protection as if he or she were working. See "Temporary Disability Benefits" or "Total and Permanent Disability Benefits."

Divorce

The dissolution of a marriage or civil union.

Early Retirement Discount

Not to be confused with the IMRF ERI. The early retirement discount reduces a Regular plan member’s pension if he or she retires before the full retirement age.

Regular Plan Tier 1:
Full retirement age 60
If a member retires between the age of 55 and 60 with less than 35 years of service credit, the pension is discounted (reduced) one-quarter percent for each month the member is less than age 60 or for each month the member has less than 35 years of service, whichever discount is smaller. If a member retires at age 55 with at least 35 years of service credit, there is no reduction.

Regular Plan Tier 2:
Full retirement age 67
If a member retires between the ages of 62 and 67 with less than 35 years of service credit, the pension is discounted (reduced) one-half percent for each month the member is less than age 67 or for each month the member has less than 35 years of service, whichever discount is smaller. If a member retires at age 62 with at least 35 years of service credit, there is no reduction.

SLEP Plan Tier 2:
Full retirement age 55
If a member retires between the ages of 50 and 55, the pension is discounted (reduced) one-half percent for each month the member is less than age 55.
 

ECO

IMRF’s Elected County Official Plan provides for an alternative benefit plan for elected county officials.

The ECO plan was closed to new participants as of August 8, 2011.

If a county has not adopted the ECO plan, it no longer has the option to do so. Elected County Officials currently participating in ECO remain in the plan.

Members participating in the Original ECO plan are eligible to continue ECO through all subsequent employment, as long as they have not revoked their ECO participation.

ERI

The IMRF Early Retirement Incentive. At the employer’s option, a member can purchase up to five years of service credit. For each period of service credit purchased, the member’s age is increased accordingly.

Under the Regular Plan Tier 1:
The member must be at least age 50 and have at least 20 years of service credit (can include Reciprocal service).

Under the Regular Plan Tier 2:
The member must be at least age 57 and have at least 20 years of service credit (can include Reciprocal service).

EFTS

Electronic Funds Transfer System. Employers submit payments to IMRF electronically over the telephone or via the web with our EFT System. Another type of EFTS is ”Direct Deposit,” where IMRF directly deposits a member’s benefit payments into the member’s checking or savings account.

Employer

A unit of government that joins IMRF.

Employer Access

The secure Employer Access area of IMRF’s website is designed to provide IMRF employers with information specific to their employer and members’ accounts. Also, employers can now enroll new members, submit IMRF termination forms, Monthly Wage Reports, and wage adjustments through this secure website.

Employer contributions

The employer IMRF contribution rate is computed separately for each employer every year. Employer contributions pay a portion of the cost of retirement pensions, surviving spouse pensions, death benefit coverage, and disability benefits.

Field Representatives

IMRF field representatives work with employers and members and assist them with IMRF related questions. IMRF Field Representatives also conduct employee workshops, Authorized Agent Certification Programs, and other informational presentations.

Final Rate of Earnings (FRE)

A member’s Final Rate of Earnings (FRE) is the salary used to calculate the amount of retirement benefits.

Under the Regular Tier 1 and SLEP Tier 1 plans:
A member’s highest total earnings (up to the wage cap) during any 48 consecutive months within the member’s last 10 years of IMRF service divided by 48. Usually, this is the average of the last 48 months of service. The earnings considered for each of the last three months cannot be more than 25% greater than the highest earnings in any of the first 45 months of the 48 consecutive months.

Under the Regular Tier 2 plan:
A member’s highest total earnings up to the wage cap during any 96 consecutive months within the member’s last 10 years of IMRF service divided by 96. Usually, this is the average of the last 96 months of service. For members who began participation between January 1, 2011 and December 31, 2011, the earnings considered for each of the last three months cannot be more than 25 percent greater than the highest earnings in any of the first 93 months of the 96 consecutive months. For members who began participation on or after January 1, 2012, the earnings considered for each of the last 24 months cannot be more than 25 percent greater than the highest earnings in any of the first 72 months of the 96 consecutive months.

Regular Tier 2 FRE cap: In 2024, the cap is $125,773.73. This amount could automatically increase annually by the lesser of 3% or by one-half of the increase in the Consumer Price Index (urban) (CPI-U) for the preceding 12 months as of September. If the CPI-U decreases, your wage cap will not be reduced. It will remain the same.

Under the SLEP Tier 2 plan:
A member’s highest total earnings up to the wage cap during any 96 consecutive months within the member’s last 10 years of IMRF service divided by 96. Usually, this is the average of the last 96 months of service. For members who began participation between January 1, 2011 and December 31, 2011, the earnings considered for each of the last three months cannot be more than 25 percent greater than the highest earnings in any of the first 93 months of the 96 consecutive months. For members who began participation on or after January 1, 2012, the earnings considered for each of the last 24 months cannot be more than 25 percent greater than the highest earnings in any of the first 72 months of the 96 consecutive months.

SLEP Tier 2 FRE cap: In 2024, the cap is $125,773.73. This amount automatically increases annually by the lesser of 3% or by one-half of the increase in the Consumer Price Index (urban) for the preceding 12 months as of September. Overtime earnings for SLEP members are excluded from reportable earnings and are not included in the SLEP FRE.

Under the original Elected County Official plan:
A member’s FRE is the annualized salary payable on the last day of participation in the ECO plan divided by 12. The ECO monthly FRE does not include any lump sum payments for vacation, sick leave, overtime, personal leave, etc. The ECO monthly FRE does include the annual stipend. However, the stipend is ”annualized,” e.g., an annual stipend of $2,500 increases the monthly FRE by $208.33.

Under the revised  Elected County Official Tier 1 plan:
A member’s FRE is the average of the highest consecutive 48 months of ECO service in the last 10 years held in a specific office with the same county. A separate ECO FRE is calculated for each elected county position held in the same county.

Alternative FRE Calculation: Lifetime FRE
Most members’ pensions are based on a formula that includes the member’s Final Rate of Earnings (FRE) and years of service credit.

The Illinois Pension Code provides for an alternative FRE formula when a member has higher earnings at the beginning of his or her career. This FRE is known as a “Lifetime FRE.” This FRE averages all of a member’s earnings reported by all of his or her IMRF employer(s) over the member's entire IMRF career.

When a member retires, IMRF calculates the FRE using both methods and uses the FRE that provides the member with the larger pension.

Formula

Regular Tier 1 and Tier 2 plans:
1-2/3% of a member’s final rate of earnings for each of the first 15 years of service credit, plus 2% of a member’s final rate of earnings for each year of service credit in excess of 15 years. The total pension at retirement cannot exceed 75% of the member’s final rate of earnings.

SLEP Tier 1 plan, member terminated SLEP on or after July 1, 2004:
Flat 2.5% of the member’s final rate of earnings for each year of SLEP service credit. The total pension at retirement cannot exceed 80% of the member’s FRE.

SLEP Tier 1 plan member terminated SLEP participation before July 1, 2004:
50% of the member’s final rate of earnings for the first 20 years of SLEP service credit, plus 2% of the final rate of earnings for each year of service over 20 and under 30 years, plus one percent of final rate of earnings for each year of service over 30 years. The total pension at retirement cannot exceed 75% of the member’s final rate of earnings.

SLEP Tier 2 plan:
Flat 2.5% of the member’s FRE for each year of SLEP service credit. The total pension at retirement cannot exceed 75% of the member’s FRE.

Original ECO plan:
3% of ECO monthly final rate of earnings for each of the first 8 years of ECO service credit, plus 4% of ECO monthly final rate of earnings for each of the next 4 years of ECO service credit, plus 5% of ECO monthly final rate of earnings for each year of ECO service credit in excess of 12 years to a maximum of 80%. A member does not need eight years of ECO service to qualify for the ECO formula.  The ECO formula is applied to the ECO service regardless of the amount of that service. For example, if a member has one month of ECO service, the ECO formula will be applied to that one month and the Regular or SLEP formulas applied to the remaining service.

Revised ECO Tier 1 and Tier 2 plans:
Same as original ECO:  3% of ECO monthly final rate of earnings for each of the first 8 years of ECO service credit, plus 4% of ECO monthly final rate of earnings for each of the next 4 years of ECO service credit, plus 5% of ECO monthly final rate of earnings for each year of ECO service credit in excess of 12 years to a maximum of 80%. However, a revised ECO plan member must hold the same elected county position in the same county for a minimum of eight years to qualify for the ECO retirement formula.  Under Tier 2, a member must have at least eight years in the same elected county office with the same county to qualify for the ECO formula but at least 10 years of total service credit to vest for a pension.

FRE

See "Final Rate of Earnings."

Hourly standard

The hourly standard (either 600 or 1,000 hours a year) determines whether or not a position qualifies for IMRF participation. Your Field Representative will know your employer’s hourly standard.

IRA

Individual Retirement Account. A tax-deferred retirement account for an individual that permits individuals to set aside up to $4,000 per year, with earnings tax-deferred until withdrawals begin at age 59 1/2 or later (or earlier, with an additional 10% tax).

Member contributions

Members who participate in the Regular Tier 1 and Tier 2 plans contribute 4.50% of salary toward a future IMRF pension: 3.75% for the member and 0.75% for a surviving spouse pension.

Tier 2 members do not contribute on wages above the wage cap.

SLEP plan members contribute 7.50% of salary (up to the wage cap for Tier 2) 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.  SLEP Tier 2 plan members do not contribute on overtime wages.

Members in any 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.

Member Statement of Account

See “Personal Statement of Benefits.”  

Optional pension payout

Members retiring from IMRF’s Regular Tier 1 plan, and SLEP Tier 1 and Tier 2 plans:
If a member retires before age 62, he or she can choose IMRF’s optional plan. The member would receive a larger pension until age 62 and a reduced pension thereafter. See ”standard payment plan.”

Members retiring from IMRF’s Regular Tier 2 plan:
The optional payment payout is not available. A member must be at least age 62 to retire under IMRF’s Regular Tier 2 plan.

Participating member

Also known as active member. A member currently working in an IMRF qualified position and making contributions to IMRF. A member on an IMRF authorized leave of absence or receiving IMRF disability benefits is also considered a participating member.

For the purposes of an Authorized Agent submitting a petition or casting a ballot in an executive trustee election, a "member of IMRF" includes an employee who is either  working  in a position not excluded from IMRF coverage and whose position meets the annual hourly standard for IMRF coverage or receiving an IMRF pension and working in position that does not qualify for IMRF participation or one that provides the employee the option of participating in IMRF, e.g., elected office.

Past service

A member can receive past service credit for service performed and earnings paid for a period prior to January 1 of the current year (January 1 through December 31). Past service falls into three categories of authorization:

Requires Governing Body approval or prior resolution on file:

• Military leave provided by Illinois Pension Code

• Retroactive service for elected officials

• Application for prior service

• IMRF Benefit Protection Leave

• Out-of-state service credit authorization

Requires approval of Authorized Agent:

• Application for retroactive service credit

• Omitted service credit verification

• General Assembly application for service

• Certification of Sheriff’s Law Enforcement service

Requires application by member only:

• Application for reinstatement of service (repay a refund)

• Military leave provided under Federal law

• Conversion of up to 120 months of Regular plan service to SLEP

Pension

Also known as an annuity. An IMRF pension is paid as long as the member lives.

Under the Regular Tier 1 Plan

• A member must have at least eight years of service credit and be age 55.

• The pension is increased by 3 percent of the original amount each year.

Under the Regular Tier 2 Plan

• A member must have at least 10 years of service credit and be age 62.

• The pension is increased by the lower of 3% or one-half of the increase in the Consumer Price Index for the preceding 12 months as of September. The increase is based on the original pension amount. The annual increase is payable when the member reaches age 67 or receives 12 months of pension payments, whichever occurs later. If the CPI decreases or is zero, no increase is paid.

Under the SLEP Tier 1 Plan

• A member must have at least 20 years of SLEP service credit and be age 50.

• The pension is increased by 3 percent of the original amount each year.

Under the SLEP Tier 2 Plan

• A member must have at least 10 years of SLEP service credit and be age 55.

• The pension is increased by the lower of 3% or one-half of the increase in the Consumer Price Index for the preceding 12 months as of September. The increase is based on the original pension amount.  The annual increase is payable when the member reaches age 60 or receives 12 months of pension payments, whichever occurs later. If the CPI decreases or is zero, no increase is paid.

Under the Revised ECO Tier 1 Plan

• A member must have at least eight years in the same elected county office with the same county and be age 55.

• The pension is increased by 3 percent of the original amount each year.

Pension credits

See ”creditable service.”

Public Safety Employee

Public safety employees include individuals involved in crime and juvenile delinquency control or reduction, or enforcement of the criminal laws (including juvenile delinquency), including, but not limited to police, corrections, probation, parole, truant officers, and judicial officers; professional firefighters; officially recognized or designated public employee members of a rescue squad or ambulance crew; officially recognized or designated members of a legally organized volunteer fire department; officially recognized or designated chaplains of volunteer fire departments, fire departments, and police departments.

Qualified position

Also known as covered position. An IMRF qualified position is one which will equal or exceed an employer’s annual hourly standard. An employee is required to participate in IMRF if he or she works in an IMRF qualified position.

Qualifying Spouse

To receive a surviving spouse pension, the surviving spouse must have been married to or in a civil union with the IMRF member for at least one year prior to the member’s last date of participation in IMRF (or in a reciprocal system, if appropriate), and the member must have a valid beneficiary form on file with IMRF naming the spouse as the only primary beneficiary.

Reciprocal Act/System

Reciprocity allows service credit earned with  IMRF and one or more of 12 other Illinois public pension funds to be considered together to determine eligibility for and the amount of retirement benefits. Reciprocal service cannot be used in the calculation of a SLEP pension

Regular plan

Employees who work in positions that qualify for IMRF must participate in IMRF under the Regular plan. Two exceptions exist: participation in IMRF is optional for elected officials and city hospital employees.

Members who participated in IMRF before January 1, 2011, participate in the Regular Tier 1 plan. Any future IMRF participation will be under Tier 1, even if the member changes employers or takes a refund and returns to participation.

Members who first join IMRF on or after January 1, 2011, participate in the Regular Tier 2 plan. EXCEPTIONS: Members enrolled in IMRF on or after January 1, 2011, will participate in Tier 1 if the member:

• Previously participated in IMRF or in a Reciprocal retirement system (except the Judges or General Assembly retirement systems), even if the member took a refund of his or her contributions and has not yet repaid the refund,
  or

• Purchases omitted service credit that creates a participation date prior to January 1, 2011.

A small group of IMRF members work in positions that qualify for a different IMRF plan: the SLEP, ECO, or SLEP ECO plan.

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.

Reversionary (Special Needs) annuity

Under a reversionary (Special Needs) annuity, a member chooses to receive a lower pension payment so his or her IMRF pension payments can revert (become payable) to some other individual upon the member’s death.

Roth IRA

A type of IRA (Individual Retirement Account), established in the Taxpayer Relief Act of 1997, which allows taxpayers, subject to certain income limits, to save for retirement while allowing the savings to grow tax-free. Taxes are paid on contributions, but withdrawals, subject to certain rules, are not taxed at all.

Seasonal employees

Seasonal employees of school districts and special education cooperatives automatically receive 12 months of service credit if they are employed for the entire year. Seasonal employees of other IMRF employers can receive 12 months of service credit if they are employed the entire year and the employer applies to IMRF.

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.

Service credit

Service credit is a member’s total time under IMRF, stated in years and fractions. Service is credited monthly while a member is working, receiving IMRF disability benefits or while he or she is on IMRF’s Benefit Protection Leave.

A member earns one month of service credit for each month he or she:

• Works in a qualified position and makes a member contribution.

• Worked in a qualified position prior to his or her employer joining IMRF.

• Receives an IMRF disability benefit.

• Is on an IMRF Benefit Protection Leave (limited to 12 months).

• Purchases a month of past service credit.

A member cannot earn more than one month of service credit for any given calendar month.

SLEP

IMRF’s Sheriff’s Law Enforcement Personnel program is available to county sheriffs, deputy sheriffs, forest preserve rangers and airport police and certain police chiefs.

SLEP ECO

Sheriffs who work for a county that has adopted the Elected County Official Plan and who elected to participate in ECO, participate as SLEP ECO. (ECO was closed on 8/8/2011)

Social Security

Social Security coverage for IMRF members is required, except for a limited number of firefighters and police officers, by an agreement between the State of Illinois and the Commissioner of Social Security under Section 218 of the Social Security Act.

IMRF members pay Social Security taxes on wages up to the wage base, and IMRF employers pay an equal amount. IMRF employers remit these taxes to the Internal Revenue Service.

Applications for benefits and questions about Social Security should be directed to the local Social Security district office or representative or call 1-800-772-1213.

Special Needs (Reversionary) annuity

Under a Special Needs (reversionary) annuity, a member chooses to receive a lower pension payment so his or her IMRF pension payments can revert (become payable) to some other individual upon the member’s death.

Spouse

An IMRF member’s wife, husband, or civil union partner.

Standard pension payout

Also known as a straight life plan. Under straight life plan, a member receives the same pension amount every month after he or she retires for the rest of his or her life, regardless of how long he or she lives.  See ”optional pension payout.”

Surviving spouse contributions

All IMRF members are required, by law, to contribute toward a surviving spouse pension. If a member retires and he or she does not have an eligible spouse (married or in a civil union for at least one year before he or she terminated IMRF participation), the member’s surviving spouse contributions will be refunded, with interest. A member receiving a lump sum refund of surviving spouse contributions may choose to annuitize the refund, that is, receive the refund as an additional monthly pension.

Surviving spouse pension

Another benefit proper for life to be qualifying spouse of certain deceased members.  See section 5.30.

Tiers

Public Act 96-0889 created a second tier for IMRF’s Regular and Elected County Official plans. A member’s participation date determines his or her tier.

Tier 1: Members enrolled in IMRF before January 1, 2011. If a Tier 1 member:

• Stops participating in IMRF and is again enrolled in IMRF, the member will participate in Tier 1.

• Changes IMRF employers, the member will participate in Tier 1.

• Terminates participation, takes a refund of his or her contributions and is later enrolled in IMRF, the member will participate in Tier 1.

Tier 2: Members first enrolled in IMRF on or after January 1, 2011

EXCEPTIONS: Members enrolled in IMRF on or after January 1, 2011, will participate in Tier 1 if the member:

• Previously participated in IMRF or in a reciprocal retirement system (except the Judges or General Assembly retirement systems), even if the member took a refund of his or her contributions and has not yet repaid the refund,
  
  or

• Purchases omitted service credit that creates a participation date prior to January 1, 2011.

Public Act 96-1495 created a second tier for IMRF SLEP. A member’s participation date determines his or her tier.

Tier 1: Members first enrolled in SLEP before January 1, 2011:

• If a member ever participated in SLEP with any employer before January 1, 2011, that member always participates in Tier 1 even if that member terminated participation and took a refund of contributions.

Tier 2: Members first enrolled in SLEP on or after  January 1, 2011:

• A member will participate in SLEP Tier 2 even if that member participated in Regular IMRF Tier 1 or Tier 1 with a reciprocal retirement system. Some SLEP members will be participants in both Regular plan Tier 1 and SLEP plan Tier 2.

Temporary disability benefits

Temporary disability benefits are paid if a member is unable to perform the duties of any position which might reasonably be assigned by his or her current IMRF employer. They are paid for a period of time equal to one-half of the member's IMRF service credit, but not more than 30 months.

Total and Permanent disability benefits

Total and permanent disability benefits are paid after temporary disability benefits have expired. To qualify, the member must be totally and permanently disabled and unable to engage in any substantial gainful employment.

TRS

Teachers' Retirement System. See https://www.trsil.org

Voluntary Additional Contributions

A member may contribute up to an additional 10% of his or her earnings (or up to the wage cap for Tier 2) to the Voluntary Additional Contribution (VAC) program. At retirement, the member can take the VAC as a lump sum or possibly as an additional monthly pension.

VAC are after tax, they are not tax-deferred like usual IMRF member contributions. Some members may be better served by contributing a portion of their salary on a pre-tax (tax-deferred) basis to their employer’s deferred compensation plan, e.g., 457 or 403(b).

Vesting

Vesting establishes a member’s right to a guaranteed future monthly retirement benefit.

• A member is vested for a Regular Tier 1 plan pension when he or she earns eight years of any type of service credit.

• A member is vested for a Regular Tier 2 plan pension when he or she earns 10 years of any type of service credit.

• A member is are vested for a SLEP pension when he or she earns 20 or more years of SLEP service.  

Also see ”Reciprocal Act.”

Wage Caps

Under Tier 2, a member’s wages are capped at $125,773.73  (in 2024). The member does not pay any contributions on wages above the cap. The wage cap is also applied when IMRF calculates member’s benefits. The wage cap could automatically increase each year by the lesser of 3% or one-half of the increase in the Consumer Price Index (urban) (CPI-U) for the preceding 12 months as of September. If the CPI-U decreases or is zero, no increase is paid.

Web Assistant

 IMRF employers (units of government) that have several instrumentalities and/or departments may wish to appoint Web Assistants.

 Web Assistants are responsible to the appointed Authorized Agent and would perform such functions as are delegated to them by the Authorized Agent and the governing body. In contacts with IMRF, they must operate through the appointed Authorized Agent.

The Authorized Agent should set up an Employer Access Web Assistant account for any Web Assistant. An Employer Access User ID functions as an electronic signature.