What is a Benefit Protection Leave?
A Benefit Protection Leave allows you to receive IMRF service credit and protect your disability and death benefits during an unpaid leave of absence.
If your employer wishes to provide you with IMRF service credit and IMRF disability and death benefit protection when your IMRF disability benefits end and you are not working, your employer’s governing body would file with IMRF an IMRF Form 6.32, “IMRF Benefit Protection Leave.”
What are the requirements for Benefit Protection Leave?
- You must still be employed in an IMRF-covered position. If you have been laid-off or otherwise terminated, you are not eligible for a Benefit Protection Leave.
- If you are continuing to receive pay, even if it’s a reduced amount, you are not eligible for a Benefit Protection Leave.
- Your employer’s governing body must certify the Benefit Protection Leave.
- If a leave is approved, you are responsible for paying your member contributions, plus any interest, after you return from your leave.
- You are allowed a maximum of 12 months of Benefit Protection Leave over your entire IMRF career.
How do you pay for Benefit Protection Leave?
- How IMRF calculates your cost
The cost of your leave is based upon the IMRF member contributions applicable to your Plan, plus interest. IMRF calculates the cost by multiplying your average monthly earnings by the number of months of the leave of absence. To determine your average monthly earnings, add up your IMRF-reported earnings for the 12 months before your leave and divide by twelve. - Your payment schedule
IMRF will mail you a Past Service Payment Schedule offering two payment plan options for establishing the past service: - Option 1 - Lump Sum Payment Plan
The Lump Sum Payment Plan allows you to pay the total cost with a single payment and purchase all past service at once. - Option 2 - Unit Payment Plan
The Unit Payment Plan allows you to purchase one or more months at a time. You may pay as often as you like, buying credit from your earliest to your most recent month of service. However, you may not buy more months than indicated on the Past Service Payment Schedule.
NOTE: You can submit the Benefit Protection Leave application with a future end date. However, IMRF will not send you a payment schedule until your employer submits the end date of your leave. See the below section “What if my Benefit Protection Leave ends at a future date?” for more information. - Using funds from an IRA or other pension plan
If you want to use funds from an IRA or other pension plan to pay for the leave, you may pay for service with a qualified pension plan as defined by Section 401a, 457, 403b, etc. of the Internal Revenue Code, or with a traditional individual retirement account (“IRA”). Please complete and submit IMRF Form 6.01, “Request for Rollover Approval,” for determination of eligibility.
What if my Benefit Protection Leave ends at a future date?
In this situation, IMRF will process the application and estimate your cost based upon the future return date provided by your employer.
Do not send IMRF a payment based on this estimate. Once your employer notifies IMRF of the actual end date, IMRF will send you a formal Payment Schedule with the final amount due. You can then send your payment to IMRF.