Refunds

You are an inactive member if you previously participated in IMRF and left your contributions on deposit with us. 

You are guaranteed the return of your contributions as either a pension or a refund. However, if you have enough service credit to qualify for an IMRF pension we strongly discourage you from requesting a refund. There are almost no circumstances when a refund will be an advantage to you over a pension.

Learn Then Decide

There is no charge or penalty for leaving contributions on deposit with IMRF, and there is no amount of time in which you have to make a decision about contributions before your required minimum distributions (RMD) age. (See www.irs.gov for more information about your RMD.)

However, it is important to understand that you will not receive interest when you apply for a separation refund, no matter how long your contributions are on deposit with IMRF. 

Leave Your Contributions on Deposit With IMRF

This option makes sense if you are vested for an IMRF pension or if you think you may work for another IMRF or reciprocal system employer on the future. When you are an inactive member:

• You should sign up for a Member Access account if you don’t already have one. With Member Access you can keep your personal information up to date, view your account balance and service credit, create pension estimates, and view estimates of your death benefits.
• You will continue to receive an annual personal statement of benefits from IMRF.

Take a Separation Refund

When you take a refund of your IMRF contributions, you lose all of your service credit and you give up your right to any future IMRF pension and death benefits. Consider this decision carefully if you are vested or if it is likely you will go back to work for another position covered by IMRF or an Illinois reciprocal retirement system.

In order to take a refund:

• You must terminate employment (stop working for) with your IMRF employer, not just change positions, to receive a refund of your member contributions.
• If you are at retirement age and eligible to receive a monthly pension of $100 or more, you cannot take a refund of your contributions unless you are going to directly rollover your contributions into another qualified retirement plan to purchase service credit, such as a pension plan you belong to in another state.

If you decide to take a refund, you have two options on what to do with your money. Each option has different tax consequences: