If payments for sick, vacation or personal time are to be considered IMRF earnings, they must be reported to IMRF no later than one month after the member's termination date.
For example, if a member terminates on June 15, but is paid for sick, vacation or personal time in July, those earnings are reportable to IMRF. However, if the member's earnings are paid in August (or later), those earnings are not reportable to IMRF.
If the employer will pay the member a lump sum payment for sick, vacation, and/or personal time:
The gross amount of the payment would be reported to IMRF as earnings, but the net payment would be held by the employer until it receives an invoice from IMRF for the member cost.
The employer must forward the net payment (gross payment less taxes, IMRF contributions, etc.) to IMRF via First Data Government Solutions EFT pay-by-phone or pay online system. The net payment will be applied toward the member's ERI cost.
If the net payment for sick, vacation, and/or personal time is greater than the member's ERI cost, the employer would pay to IMRF (via First Data Government Solutions EFT) an amount required to pay the member's cost. The employer would forward to the member any remaining balance of the net payment.
If payment for sick, vacation, and/or personal time is spread over several months, the employer must still forward the net payment to IMRF. As long as the lump sum payment for sick, vacation, and/or personal time is due to the member's retirement, the net amount is payable to IMRF.