Early Retirement Incentive

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 may download a copy of the "IMRF Early Retirement Incentive - Employer Information" booklet for further details.