How workers’ compensation or occupational disease benefits reduce IMRF disability payments
If it appears you may be eligible for workers’ compensation/occupational disease benefits, IMRF will reduce your monthly disability benefit even if you do not apply.
Your IMRF disability benefit will be reduced even while your claim is pending.
How much is my IMRF disability payment reduced?
Workers’ compensation benefits are normally 66-2/3% of your average weekly wage. IMRF disability benefits are usually 50% of your average monthly earnings.
Because workers’ compensation is usually more than the IMRF benefit, your monthly IMRF disability benefit is reduced to $10. With this payment:
- You still earn IMRF service credit.
- Your other IMRF benefits continue to apply. Read more here.
If your workers’ compensation claim is pending
If you are being paid a reduced IMRF benefit and a final decision on your workers’ compensation claim is pending, IMRF may restore your benefit to the full amount if you sign a Disability Payment Agreement. Click here to learn more about Disability Payment Agreements.
If your claim is denied
If your workers’ compensation/occupational disease claim is denied or paid in a smaller amount than the reduction, IMRF will adjust your benefits accordingly.
Contact IMRF before choosing a lump sum settlement
If you have the option of choosing a lump sum settlement from workers’ compensation instead of weekly or monthly payments:
- Before any workers’ compensation settlement is drawn up, have your attorney contact the IMRF legal department.
- IMRF will reduce your disability benefit accordingly if you choose a lump sum.
Contact IMRF before signing a resignation agreement
In some cases, an employer may offer to settle a workers’ compensation claim if the member agrees to resign from his or her position and give up all rights as an employee of that employer.
Note: If you sign such a resignation agreement, you also give up your right to IMRF disability benefits, unless the agreement specifically states that you are not giving up your right to IMRF disability benefits. Call IMRF at 1-800-ASK-IMRF (275-4673) before you resign or sign a workers’ compensation resignation agreement to understand the impact.
Impact of workers’ compensation benefits on Social Security and IMRF disability benefits
If you receive workers’ compensation benefits, Social Security will reduce its disability benefit. (Contact Social Security for more information.) However, IMRF disability benefits are reduced by the amount of Social Security disability benefits you may be entitled to receive before any reduction for workers’ compensation.
Exception to worker's compensation reduction
If you have IMRF or reciprocal retirement system credit earned during the period from October 1, 1974, through September 30, 1977, your benefit will not be reduced. |