5.50 A. Purpose of Reciprocal Act

The purpose of the Reciprocal Act is to provide for the continuity and preservation of service credit Service credit is a member's total time under IMRF, stated in years and fractions. Service is credited monthly while a member is working, receiving IMRF disability benefits or while he or she is on IMRF's Benefit Protection Leave. A member earns one month of service credit for each month he or she: (1) works in a qualified position and makes a member contribution. (2) worked in a qualified position prior to his or her employer joining IMRF. (3) receives an IMRF disability benefit. (4) is on an IMRF Benefit Protection Leave (limited to 12 months). (5) purchases a month of past service credit. A member cannot earn more than one month of service credit for any given calendar month. in the case of members transferring employment from one governmental unit to another, resulting in pension Also known as an annuity. An IMRF pension is paid as long as the member lives. It is increased by 3% of the original amount each year. A member must have at least eight years of service credit and be age 55 to apply for an IMRF pension under the Regular and ECO plans. A member must be age 50 and have at least 20 years of SLEP service credit to apply for a SLEP pension. coverage. Use of the provisions of the Reciprocal Act is optional with the member.

For example: A member participated under IMRF for 12 or more months but left participation and kept his or her contributions on deposit. The member then went on to participate in one or more of the reciprocal systems. When that member retires, all of his or her service credit would be combined to calculate the amount of a pension from each system. This calculation is explained in more detail later in this section.

Please note: A member must have 12 or more months of service with a reciprocal retirement system for the member to use that service in the calculation of a reciprocal pension. One exception exists to this 12-month minimum requirement:

Exception: Certain former paraeducators (teacher’s aide) in a school district who transferred to a position covered by the Teachers’ Retirement System (TRS) and who has less than 12 months of IMRF service credit may apply that service toward a reciprocal pension.

If a former teacher aide took a refund of his or her IMRF contributions, he or she can repay the refund and reinstate the service credit. See Paragraph 6.40 Past Service, Reinstatement

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