It is very important that a member who is receiving IMRF disability benefits understand the impact of resigning from his or her position.
The act of resignation is a two-part process. First the member resigns, and then the employer accepts the resignation and terminates the member.
Voluntary Resignation
If a disabled member resigns voluntarily, IMRF disability benefits will stop on the effective date of the resignation.
Termination vs. Resignation
If a member has a choice of being terminated or resigning, and then chooses to resign, IMRF will continue to pay the member disability benefits. Because the only choice was termination or resignation, IMRF treats those members as terminated by the employer and the member remains eligible for disability benefits for the disabling condition.
IMRF must receive documentation of the resignation in writing, e.g., a letter from the member to the employer or an acknowledgement letter from the employer to the member.
Different Position vs. Resignation
In some cases, a disabled member has a choice between resigning OR accepting a different position at the same IMRF employer to accommodate his or her medical restrictions. In most situations like this, IMRF is aware that the member’s physician has placed restrictions on the member returning to his or her original position.
If the member chooses to resign, IMRF will verify whether or not the member was offered a ”reasonable” alternative position prior to resigning. If we determine that the member was offered a reasonable alternative position and chose to resign, IMRF disability benefits will stop on the effective date of the resignation. All verification documentation must be in writing, e.g., a letter from the member to the employer or an acknowledgement letter from the employer to the member.
Workers’ Compensation and Resignation
In another type of member resignation, the member has filed a Workers’ Compensation claim. During negotiations to settle the Workers’ Compensation claim, the employer may offer to settle the Workers’ Compensation matter if the member resigns from his or her IMRF position and agrees to give up all rights as an employee of that employer.
When the member signs such a resignation agreement, the member gives up the right to receive IMRF disability benefits unless the agreement specifically states that the member is not giving up his or her right to IMRF disability benefits. This is true even if the agreement mentions that the member is resigning due to a health condition. The reasoning is that by signing such an agreement, the member is separating from service.
Unless the agreement specifically states that the member is NOT giving up his or her rights to IMRF disability benefits, such benefits will stop on the effective date of the resignation. Before any workers compensation settlement is drawn up, the member’s attorney should contact the IMRF legal department.