A QILDRO requires IMRF to split your IMRF benefits at the time they are actually paid to you. Your alternate payee cannot receive any payments from IMRF before you do, and can never “empty out” your IMRF account.
If you are not retired yet
Contribution refund (separation refund)
Your alternate payee cannot be paid his or her portion of a separation refund until you apply for your refund.
To take a refund, you must:
- Leave your IMRF employer
- Stop participating in IMRF
- Meet all refund requirements.
(For more information about refund eligibility requirements, review the benefit information for your IMRF plan and tier at www.imrf.org).
Contribution refunds can only be paid as a single lump sum. Your alternate payee can choose to receive refund payments as a direct payment or a rollover.
Future retirement
If you are planning to retire in the future with an IMRF pension, your alternate payee cannot be paid his or her portion of your pension payments until:
- You have applied for retirement
- You are receiving your portion of the monthly pension
- IMRF has received a valid Calculation Order (if your QILDRO contains percentages)
Retirement benefits can only be paid as recurring monthly payments—they can never be paid as a lump sum.
If your QILDRO includes any refunds at retirement you are eligible for, these cannot be paid to your alternate payee until:
- You apply for your retirement
- You receive the refund(s)
- IMRF has received a valid Calculation Order (if your QILDRO contains percentages)
Under a QILDRO, refunds at retirement can only be paid as a lump sum.
If you are already retired
If you divorce after you are already receiving an IMRF benefit, your alternate payee can expect to be paid his or her portion of your monthly pension approximately 60 days after we receive a valid QILDRO (and your Calculation Order, if one is required. Retirement benefits can only be paid as recurring monthly payments—they can never be paid as a lump sum.
Death benefits
Lump sum death benefits are the only death benefits that can be included in a QILDRO. If your QILDRO instructs IMRF to pay any lump sum death benefits to your alternate payee, your alternate payee will be paid first, before any beneficiaries you have named on your IMRF Designation of Beneficiary form.
Your alternate payee can choose to receive lump sum benefit payments as:
- A direct payment
- A rollover
- An annuity (if the amount is enough to convert to a monthly annuity of at least $10.00 a month.
Any remaining lump sum benefits after the QILDRO has been paid will then be paid to your beneficiaries. If you do not have a valid beneficiary form on file, any remaining lump sum benefits will be paid to your estate.
You may need a Calculation Order before benefits can be paid
When completing your QILDRO you must choose between two calculation methods for each benefit type you are dividing: dollar amount or percentage.
If you have any percentages in your QILDRO, we cannot pay your alternate payee until we also receive a court-certified Calculation Order. In some cases we also cannot pay you without a valid Calculation Order.
For more information about the difference between dollar amount and percentage calculation methods, click here. For more information about completing a Calculation Order, click here.
QILDRO Annuities are Paid on the First of the Month
Once a QILDRO annuity begins, payments are directly deposited into the alternate payee's bank account on the first of each month.