The Preliminary Rate Notice, which IMRF provides each employer in March or April each year, and the Final Notice, which IMRF provides to each employer in November, include a breakdown of an employer’s Regular IMRF rate (as well as SLEP and ECO rates if applicable).
Employers who choose to contribute less than the ARC are required to record a net pension obligation (NPO) on their books for the difference between what they actually contributed and what would have been contributed using the ARC.
To help employers determine their NPO, IMRF developed an Excel spreadsheet which will assist you in doing the calculation.
The rate may include costs for Early Retirement Incentive (ERI) (if applicable) as well as costs for normal retirement, amortization of any over or under actuarial liability, death, disability, and supplemental retirement. The employer’s contribution will equal the total rate times payroll unless a higher minimum contribution is required.