IMRF’s Early Retirement Incentive (ERI) is an employer option that allows eligible members to purchase up to five years of service credit at retirement. For each month and/or year of service credit a member purchases, the member’s retirement age is increased accordingly.
The ERI is a tool eligible IMRF employers can use, if and when they need it, to save fringe benefits and payroll costs by providing an incentive for long-term members to retire. Employers are encouraged to either:
- Replace no more than 80% of members electing to retire under the program, or
- Reduce replacement staff salaries to no more than 80% of current salary levels.
Employers are limited to offering ERI programs once every five years. If an employer submits a resolution adopting an ERI program before a five-year window has passed, IMRF will not implement the program. Employers may download a copy of the "IMRF Early Retirement Incentive - Employer Information" booklet for further details about this requirement.