6.40 Past Service Credits/Member Account Corrections

3. Reinstatement (Repay a refund) - ”Application for Reinstatement of Service Credit” (IMRF Form “Application to Reinstate Service Credit - Repaying a Refund”)

A member An employee who works in a position not excluded from IMRF coverage and whose position meets the annual hourly standard for IMRF coverage. For the purposes of an Authorized Agent submitting a petition or casting a ballot in an executive trustee election, an active member also includes an employee receiving an IMRF pension and working in position that does not qualify for IMRF participation or one that provides the employee the option of participating in IMRF, e.g., elected office. who has received a separation refund A member can receive a separation refund-a return of all his/her member contributions without interest-under certain conditions. If a member takes a refund, the member forfeits all of the service credit he/she earned. may reinstate the forfeited service credits by submitting IMRF Form entitled, “Application to Reinstate Service Credit – Repaying a Refund,” if he or she:

1. Returns to participating employment under an IMRF employer A unit of government that joins IMRF.

2. Participates under another Illinois public pension system covered by the Illinois Reciprocal Act and

3. Has rendered two years of contributing service under (a) or (b). (Prior service is not considered contributing service. See paragraph 6. Prior Service in this section.) .Exceptions to the two years of contributing service:

   1. Employees who return to IMRF participation as SLEP IMRF’s Sheriff’s Law Enforcement Personnel plan is available to county sheriffs, deputy sheriffs, forest preserve rangers and airport police and certain police chiefs. IMRF’s Sheriff’s Law Enforcement Personnel plan was revised by P.A. 94-712, which resulted in the creation of two “tiers” as follows: SL01 SLEP Tier 1, members who terminated SLEP participation before July 1, 2004, and SL02 SLEP Tier 2. The contribution rate was increased to 7.50% effective on and after June 1, 2006. P.A. 94-712 also increased the SLEP formula to a flat 2.5%. The new formula applies to SLEP members who were actively participating on or after July 1, 2004. can repay the refund immediately.

   2. Employees who return to work under a grievance arbitration award/settlement agreement or a court ordered award/settlement agreement can repay a refund prior to two years of participation, so long as the award/settlement agreement specifically provides for such repayment.

Payment of the separation refund plus interest will reinstate 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..

The member may be eligible to use funds from a traditional Individual Retirement Account (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).) or from another qualified plan or 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 repay the refund and reinstate the past service A member can receive past service credit for service performed and earnings paid for a period prior to January 1 of the current year (January 1 through December 31). Past service falls into three categories of authorization: Requires Governing Body approval or prior resolution on file: Military leave provided by Illinois Pension Code, Retroactive service for elected officials, Application for prior service IMRF Benefit Protection Leave, and Out-of-state service credit authorization. Requires approval of Authorized Agent: Application for retroactive service credit, Omitted service credit verification, General Assembly application for service, and Certification of Sheriff’s Law Enforcement service. Requires application by member only: Application for reinstatement of service (repay a refund), Military leave provided under Federal law, and Conversion of up to 120 months of Regular plan service to SLEP. credit. (See 6.40 C. Member Application and Payments.)

Members can access this form by visiting the Member Access area on IMRF's website (www.imrf.org).

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