4.14 Contribution Rates

Member An employee who works in a position not excluded from IMRF coverage and whose position meets the annual hourly standard for IMRF coverage. For the purposes of an Authorized Agent submitting a petition or casting a ballot in an executive trustee election, an active member also includes an employee 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. and 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. are a legal requirement for governmental units participating in IMRF. These contributions are calculated as a percentage of monthly wages. Member contributions are a condition of employment for covered employees and should be deducted at the time wages are paid. Failure to make deductions does not release the employer or member from this liability.

If you are not sure whether an employee is covered by IMRF, refer to:

• 3.10 Definition of Employee for school district positions

• 3.60 Definition of Employee for positions not in school districts, or

• ”Should This Employee be Enrolled” check list available on the IMRF Website, www.imrf.org.

Every year IMRF provides each employer a Final Rate Notice” (Exhibit 4A) confirming the employer and member IMRF contribution rates for the next year. Rate Notices are available online in the Employer Document Archive of Employer Access.

Learn more about:

1. IMRF Employer and Tax-Deferred Member Contributions

2. Social Security Employer and Employee Taxes