5.20 C. IMRF Early Retirement Incentive (ERI)

15. Member payments for member ERI costs (other than cash-outs of sick and vacation pay)

1. Refunds from IMRF

If the member is entitled to a refund from IMRF for surviving spouse, SLEP, or voluntary additional contributions, he or she may request that the refund be applied toward his or her ERI cost. If the refund is greater than the member's ERI cost, IMRF will refund the balance to the member.

2. Rollover

A member may roll over funds from an IRA Individual Retirement Account. A tax-deferred retirement account for an individual that permits individuals to set aside up to $2,000 per year, with earnings tax-deferred until withdrawals begin at age 59 1/2 or later (or earlier, with a 10% penalty)., another qualified pension plan, 457 or 403(b) plan A retirement plan that functions like a defined contribution plan and is similar to a 401(k) plan, but is offered by non-profit organizations, such as universities and some charitable organizations, rather than corporations. If you work for a school district or a public hospital, you may be familiar with an Internal Revenue Code Section 403(b) tax-deferred annuity. to pay the ERI cost.

3. 24 equal installments

A member's contributions for the ERI can be paid in a single sum or deducted from his or her pension in 24 equal monthly installments. Interest is not charged during the 24 months.

The 24-month payment period is fixed by law and cannot be extended.

4. Additional member payments

Once deductions for the 24 equal monthly installments begin, the member can forward additional payments or pay off the balance of his or her ERI cost at any time.

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