Accelerated Payments

for IMRF Employers
Documents

What is an Accelerated Payment?

Certain increases in reported earnings at the end of a member’s career result in additional pension costs. Employers are required to pay this additional cost immediately upon the member’s retirement. This payment is called an Accelerated Payment.

IMRF Will Send You an Accelerated Payment Invoice

If a member retires from your employer with an end-of-career increase in reported earnings of 6% or higher, IMRF will send you an Accelerated Payment Invoice that details the amount your employer must pay to IMRF.

Accelerated Payment Exemption Request

Certain increases in reported earnings are eligible for an exemption from the Accelerated Payment. Your Accelerated Payment Invoice will include an Accelerated Payment exemption request form. If your Accelerated Payment qualifies and you want to apply for an exemption, you must return the completed form along with the required supporting documentation. The following increases in reported earnings may be considered for an exemption:

These possible exemptions must meet specific requirements that are detailed on the Accelerated Payment exemption request form.

An Exemption Does Not Eliminate Liability 

Receiving an Accelerated Payment exemption does not mean your employer doesn’t have to pay this cost. Receiving an exemption means the cost will be paid over a longer period of time, through your employer’s contribution rates.

Accelerated Payment Estimator

To help you estimate your future cost of an increase in reported earnings, we have created an Excel spreadsheet.

Who should use this spreadsheet?

If you are planning to provide a member with an increase in reported earnings of more than 6% (or 1.5 times the increase in the CPI-Urban as of the previous September, whichever is greater), you can use this spreadsheet to estimate future cost (payable when the member retires).

At times IMRF updates our spreadsheets. We recommend that you create a shortcut to this page instead of making a copy of the spreadsheet. This ensures you will always use the most current version. 

Estimate Your Future Accelerated Payment

You can download an Excel spreadsheet (Updated 11/22/13) to estimate the amount of any  Accelerated Payment:

To calculate the  Accelerated Payment you will need to enter the member's:

Additional instructions and important details on the spreadsheet's limitations are included in the "Instructions" tab of the spreadsheet. 

Questions? Send IMRF a secure message.