The amount paid as an IMRF disability benefit depends on whether the member receives Social Security benefits, workers’ compensation (including occupational disease) benefits, or has returned to work for a trial work period.
The amount of a member’s disability benefit is based upon his or her average monthly earnings subject to the wage cap for Tier 2 members.
To calculate the average monthly earnings, IMRF totals the member’s earnings for the 12 consecutive months prior to the month in which he or she became disabled then divides that amount by 12; the result equals the member’s average monthly earnings subject to the wage cap for Tier 2 members.
The member may receive benefits from the following sources:
IMRF alone
IMRF and Social Security Disability or Social Security Retirement benefits
IMRF and workers’ compensation or Occupational Disease Act benefits
IMRF, Social Security Disability or Social Security Retirement benefits, and workers’ compensation
Outside earnings
The amount IMRF pays as a disability benefit depends on whether the member receives Social Security benefits, workers’ compensation (including occupational disease), and/or outside benefits. The minimum amount the member can receive from all five sources is 50% of the member’s average monthly earnings subject to the wage cap for Tier 2 members.
Please note: the same formula is used to calculate the average monthly earnings for both temporary and for total and permanent disability benefits. The member’s average monthly earnings amount does not change if the member’s classification changes from temporary disability to total and permanent disability.
If a member receives benefits from an outside (non-IMRF) disability insurance plan, that benefit payment will not impact the amount of the member’s IMRF disability benefit.
In addition to monthly IMRF disability payments, the member’s IMRF death and disability protection continues. The member also earns service credits toward retirement as if he or she were working. Future retirement benefits from IMRF will not be reduced because disability benefits are paid.
The member’s original salary subject to the wage cap for Tier 2 members, not the disability benefit amount, is used to determine the member’s final rate of earnings (FRE) and to calculate a retirement benefit. As a result, the retirement benefit will not be affected by the amount of a member’s disability benefits.
If death occurs while IMRF is paying disability benefits, the member’s beneficiary will be eligible for death benefit options calculated in the same way as when an active member dies.
If a member works in a seasonal position, IMRF calculates the disability benefits based upon the member’s annual earnings for his or her normal seasonal year. IMRF pays the disability benefits over a 12-month period so that benefit payments will continue through the member’s ”off season.” For example, a member normally works eight months a year earning $1,500 per month or $12,000 a year. IMRF will pay 50% of $1,000 a month or $500.
If a seasonal member chooses to receive his or her salary over 12 months, the member will not receive IMRF disability benefits as long as he or she receives compensation. IMRF disability benefits are not payable if a member is receiving compensation from his or her employer, whether that compensation is sick pay, vacation pay, or a seasonal salary spread over 12 months.
If because of a disability, a member has reduced earnings when he or she stops working, the amount of disability benefits will be calculated on the basis of the member’s salary subject to the wage cap for Tier 2 members for the last year of regular employment.
For example, if a member worked part time because of an accident or illness, and the accident or illness eventually forces the member to go on IMRF disability, the amount of disability benefits would be based on the member’s last year of normal full-time employment.