5.20 C. IMRF Early Retirement Incentive (ERI)

  1. Member costs for ERI

For each year of service credit a member purchases, he or she will pay 4.5% (7.5% for SLEP) of the member's highest 12 consecutive months of salary within the final rate of earnings period. (ECO members pay 7.5% of their final salary for each year of service credit purchased.)

Example (Regular):

 

The highest 12 months of salary

$27,000

x

member contribution

x  4.5%

 

Subtotal

$ 1,215

x

3 years 7 months

x 3.583

 

Member ERI Cost

$ 4,353
 

A member will make a maximum payment of 22.5% (37.5% for SLEP and 37.5% for ECO) to IMRF for five years of service credit and age enhancement.

  1. If the member has any combination of service credit, e.g., SLEP and Regular, or Regular and ECO, the type of service credit he or she may purchase under the ERI will be determined by the plan the member currently participates in. If the member's current employer adopts ERI and the member participates in:

    1. Regular, the member would purchase Regular service credit.

    2. SLEP, the member would purchase SLEP service credit.

    3. ECO, the member would purchase ECO service credit.

  2. If the member is participating under two IMRF employers under different plans, e.g., under SLEP for one employer and under the Regular for the other employer:

    1. The type of service credit purchased under the ERI will be determined by which employer adopts the ERI.

    2. If both employers adopt the program and of the member's 20 years of total service credit he or she has:

      1. Less than 15 years of SLEP service credit:  he or she would purchase Regular service credit (4.5% per year purchased)

7.5% per year purchased

x

SLEP ERI final rate of earnings

 

plus

 

4.5% per year purchased

x

Regular ERI final rate of earnings

 

  1. If the member participates in the Original ECO plan and participates under two employers:

    1. If the member participates in Original ECO, the member will purchase ECO service credit regardless which employer adopts ERI.

    2. If the member participates in Revised ECO:

      1. If the County employer adopts ERI, the member will purchase ECO service credit.

      2. If the non-ECO employer adopts ERI, the member will purchase either Regular or SLEP service credit, whichever is appropriate.

  2. If the member has no eligible surviving spouse when he or she retires, the member contribution rate is reduced to 3.75% for Regular IMRF, 6.75% for SLEP, and 6.75% for ECO.

To estimate a member's ERI cost for IMRF service credit, refer to the tables on the IMRF Website at www.imrf.org:

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