Considering Participation in IMRF

Information for Employers Considering Participation

IMRF is created by state law to administer a retirement, death, and disability benefit plan for employees of local governments in Illinois. About 3,000 employers (school districts, cities, villages, counties, townships, and other local governmental units) and more than 176,000 members are covered by the program. IMRF provides pensions to approximately 133,000 retired members. IMRF members are also covered by Social Security. IMRF is not a department of state government.

Detailed information about how to join IMRF is available in the Is your unit of government thinking about joining IMRF? booklet. Please read this publication carefully. This booklet will provide you with information about IMRF and the process to begin IMRF participation, including:

• Requesting a cost study
• How IMRF is administered
• What benefits are offered
• How those benefits are financed
• How members earn service credit

Pension Benefits Explained

IMRF is a defined benefit plan. The pension benefit is based on a set formula determined by the Illinois Pension Code and guaranteed by the Illinois Constitution. Part of the cost of the retirement benefit is paid by the member’s own contributions and the interest those contributions earn. However, the majority of the cost of the retirement benefit is paid for by the employer’s contributions and the investment earnings of those contributions.