If a unit of government is considering adopting the IMRF Early Retirement Incentive (ERI), its governing body would pass a resolution or ordinance adopting the ERI after reviewing the actuarial cost estimate prepared by IMRF. This cost estimate is mandatory. The ERI would be available for one year from the program effective date.
To use IMRF’s suggested form of resolution, send a secure message to request this form. If unable to send a secure message, contact IMRF through the employer-only phone number at 1-800-728-7971.
If an IMRF employer adopts the program, the ERI applies to all eligible IMRF members, regardless of the position held or length of service with the unit of government. The ERI would also apply to elected officials participating in IMRF. Refer to 5.20 C. IMRF Early Retirement Incentive (ERI) for more information.
Effective with ERI windows opened on or after December 31, 2013, another window may not be adopted for five years after the close of the previous window.
If an employer is aware, or has reason to be aware, of its future dissolution under state law, and its IMRF assets and liabilities will be transferred to:
The dissolving employer must provide the ERI Cost Study to the successor, and the successor must also approve the ERI. A copy of the successor unit’s resolution approving the ERI must be available to IMRF upon request.
The dissolving employer must provide the ERI Cost Study to each successor, and a majority of the successors must approve the ERI. Copies of the successor units’ resolutions approving the ERI must be available to IMRF upon request.
The IMRF Board of Trustees must approve the ERI.
IMRF will not implement an ERI that does not conform to these requirements. If IMRF discovers that these requirements were not met after paying an ERI enhanced pension to a member who retired under ERI:
The member will lose the ERI enhancements and be required to pay IMRF the difference between the ERI enhanced pension and the pension he or she would have received without the ERI, less the amount the member paid for the ERI.
In addition, if the member was less than the minimum retirement age (age 50 for SLEP, age 55 for Regular Tier 1 and ECO Tier 1, age 62 for Regular Tier 2 and ECO Tier 2), the member will be required to repay IMRF for all pension payments received that he or she was not eligible for—less the amount the member paid for the ERI.