4.14 A. IMRF Employer and Tax-Deferred Member Contributions

The employer and member IMRF contribution rates are applied to the member’s IMRF wages as described in 3.96 Introduction to Earnings for IMRF Purposes.

• Member contributions

• Regular plan members with more than 40 years of service credit

• Employer contributions
   

Member contributions

Currently, the member contribution rate for the Regular plan Tiers 1 and 2 is 4.50% (7.50% SLEP, 7.50% ECO Tiers 1 and 2) of all wages. Tier 2 members do not make contributions on wages over the wage cap. Also, SLEP Tier 2 members do not make contributions on overtime.

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. cannot be attached, garnished, assigned, or seized by any creditor, even if the member declares bankruptcy. Members cannot borrow from their member contributions on deposit, nor can they use their member contributions as collateral for a loan.
 

Members with more than 40 years of service credit

IMRF members obtain the maximum Regular Tier 1 and Tier 2 retirement benefit after earning 40 years of 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: (1) works in a qualified position and makes a member contribution. (2) worked in a qualified position prior to his or her employer joining IMRF. (3) receives an IMRF disability benefit. (4) is on an IMRF Benefit Protection Leave (limited to 12 months). (5) purchases a month of past service credit. A member cannot earn more than one month of service credit for any given calendar month.:

If a member has 40 or more years of IMRF service credit, he or she can elect to stop making IMRF contributions, even if the member’s position meets the annual 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.. The election is irrevocable. He or she would be considered an active IMRF member. IMRF service credit would not increase, nor would the member’s final rate of earnings A member's Final Rate of Earnings (FRE) is the salary used to calculate the amount of retirement benefits. Under the Regular IMRF and SLEP plans: Final rate of earnings (FRE) are a member's highest total earnings 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. However, 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 45 months of the 48 consecutive months. Under the original Elected County Official plan: Under the original ECO 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 plan: Under the revised ECO 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.. However, the member would have the same IMRF death and disability benefit protection as contributing members. (See 6.20 D. Election to Cease Making IMRF Contributions)

If a member has 40 or more years of IMRF service credit and elects to stop making IMRF contributions, that member would not be eligible for an IMRF retirement benefit until he or she terminates IMRF participation.

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 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..

If the employer rate times the monthly payroll is not sufficient to cover the required paydown of the employer’s pension obligation, a minimum monthly employer contribution may be charged. The minimum employer contribution would be shown on the ”Final Rate Notice” (Exhibit 4A) and on the Wage Report Summary.

Employers are also required to immediately pay that portion of the present value of a pension attributable to earnings increases exceeding the greater of 6% or 1.5 times the increase in the CPI-Urban as of the previous September. This applies to earnings increases paid on or after January 1, 2012, to members retiring on or after February 1, 2012. See 7.20 E. Accelerated Payment.

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