5.20 C. IMRF Early Retirement Incentive (ERI)

3. Member benefits under ERI

a.  Tier 1

Without the ERI, Regular Tier 1 members can retire at age 55. With ERI, they can retire at age 50 provided they have 20 years of service credit before adding the incentive.

Without the ERI, Regular Tier 1 members receive reduced benefits if they are less than age 60 with less than 35 years of service credit when they retire. Under ERI, members less than age 55 can purchase sufficient service to reach age 55. Members age 55 to 60 can avoid the reduction by purchasing sufficient service/age to reach age 60 or 35 years of service.

IMRF pensions are based upon a formula which provides a member with a percentage of his or her final rate of earnings for each year of service credit. A member will be able to increase the percentage he or she receives by purchasing one month to five years of additional service credit.

Eligible members may purchase from one month up to five years of additional service credit. For each period of service established, the member's age at retirement will be increased accordingly.

Tier 1 Example:

If the member's enhanced ERI age will be less than age 60 when he or she retires, the under age 60 reduction will still apply. See 5.20 B. 7. Under Age 60 Reduction.

Members who are age 60 or older may also purchase up to five years of additional service credit. Although age enhancement is no longer necessary, the additional service credit will result in a larger pension.

SLEP Tier 1 members are eligible to retire without ERI at age 50 with 20 years of SLEP service. Although age enhancement is not necessary, ERI allows a SLEP member to purchase additional credit.

Note: Reciprocal service credit cannot be used to meet the 20 years of service credit necessary to qualify for ERI.

If a member participates in the Elected County Official (ECO IMRF’s Elected County Official Plan provides for an alternative benefit plan for Elected County Officials. For an elected county official to participate in this plan, his or her county must first adopt the program. The original ECO plan was revised on January 26, 2000. County officials joining ECO on or after that date participate in the revised ECO program.) Tier 1 plan
The maximum ECO pension (80% of final rate of earnings) is earned after 20 years of ECO service credit. Age 55 is the minimum age to retire under ECO. An ECO member who retires under ERI with 20 years of ECO service will have his or her age enhanced for retirement purposes, but the pension amount will not be increased (because it is already at the maximum amount).

ECO Example:
An ECO member at age 50 with 20 years of ECO service can purchase five years of ECO service allowing him or her to retire at age 50 (instead of the minimum age of 55). However, the amount of the pension will not increase.  

b.  Tier 2

Regular Tier 2 members can retire at age 62 without ERI. With ERI, they can retire at age 57 provided they have 20 years of service credit before adding the incentive.

Without the ERI, Regular Tier 2 members receive reduced benefits if they are less than age 67 and have less than 35 years of service credit when they retire. Under ERI, Tier 2 members less than age 62 can purchase sufficient service to reach age 62. Tier 2 members age 62 to 67 can avoid the reduction by purchasing sufficient service/age to reach age 67 or 35 years of service.

IMRF pensions are based upon a formula which provides a member with a percentage of his or her final rate of earnings for each year of service credit. A member will be able to increase the percentage he or she receives by purchasing one month to five years of additional service credit.

Eligible members may purchase from one month up to five years of additional service credit. For each period of service established, the member’s age at retirement will be increased accordingly.

Tier 2 Example:

If the member’s enhanced ERI age will be less than age 67 when he or she retires, the under age 67 reduction will still apply. Also, an ERI-enhanced age of 67 does not make the member eligible for annual pension increases. Tier 2 pensions are increased after the member reaches the actual age 67 or receives 12 months of pension payments, whichever occurs later. See 5.20 B.12 Pension Increases After Retirement.

Members age 67 or older may also purchase up to five years of additional service credit. Although age enhancement is no longer necessary, the additional service credit will result in a larger pension.

Note: Reciprocal service credit cannot be used to meet the 20 years of service credit necessary to qualify for ERI.

If a member participates in the SLEP Tier 2 plan

SLEP Tier 2 members have the same ERI eligibility requirements as other plan members, except they are eligible to retire at age 50 with 20 years of SLEP service. However, the normal retirement age for SLEP Tier 2 is age 55. If a SLEP member retires under age 55, the under age 55 reduction will apply. See 5.20 B.9 SLEP Tier 2 Under Age 55 Reduction.

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