5.20 B. Amount of IMRF Retirement Benefits

7. Under Age 60 Reduction for a Regular Tier 1 Pension

If a Tier 1 member retires between the ages of 55 and 60 with less than 30 years of service credit, the pension will be reduced by 1/4% for each month the member is under age 60.

If a member retires between the ages of 55 and 60 with at least 30 but less than 35 years of pension service credit, the pension will be reduced by the lesser of

• ¼% for each month the member is under age 60 or

• ¼% for each month of service less than 35 years.

If the member has 35 or more years of pension service credit, the full amount of the pension will be paid, even if the member is between the ages of 55 and 60.

If the member retires under ERI, the IMRF ERI does not alter the existing pension reduction if a member retires before age 60. This reduction will apply if the member's ERI enhanced age is less than 60. If when the member retires:

1. His or her ERI enhanced age is between 55 and 60 and his or her ERI enhanced service is

1. less than 30 years, the pension will be reduced by 1/4% for each month the member's ERI enhanced age is under 60.

2. at least 30 but less than 35 years, the pension will be reduced by the lesser of

1. • ¼% for each month the ERI enhanced age is less 60 or

   • ¼% for each month the ERI enhanced service is less than 35 years.

2. His or her ERI enhanced age is 60 or his or her ERI enhanced service is 35 years, the full amount of the pension is paid.

If the member's actual age is 55 or greater, he or she can avoid the reduction by purchasing sufficient service to reach an enhanced age of 60 or 35 years of service credit.

If the member's actual age is less than 55, the pension reduction will be calculated using the enhanced age and service credit.

Example:

The amount of the ERI enhanced pension would be permanently reduced by 11%.

For details on IMRF's ERI, see 5.20 C. IMRF Early Retirement Incentive (ERI).

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