When you submit an application to purchase service, IMRF will send you a buyback election confirmation letter. This letter includes the service period you are eligible to purchase and the employer it will be established under. If appropriate, information about concurrent service credit that will occur because of your purchase of service.
Make sure you read this carefully—it contains important information about your purchase of service.
Your buyback election confirmation letter gives you the cost to purchase your service in the current year and the following two years. However, you can purchase (or continue purchasing) service after the years indicated on your buyback election confirmation. To obtain an updated cost quote, call an IMRF Member Services Representative at 1-800-ASK-IMRF (275-4673).
How to Read Your Buyback Election Confirmation Letter
On your cost quote, you will see this information:
- The type of service: Which type you will purchase and the date IMRF received your purchase of service application.
- The IMRF plan: Which plan your service will be credited under and the total amount of service you are eligible to purchase. You can purchase all, a portion, or none of the service credit, either all at once or in monthly “units.”
- Option I (Lump Sum Payment Plan): Costs (including interest) to purchase all your available service in a single payment. If you wish to make a lump sum payment for only part of the service, see Purchasing Service.
- Option II (Unit Payment Plan): Costs (including interest) to purchase one or more months (“units”) of service at a time. You may purchase multiple months at one time, but you cannot purchase partial months of service credit. If your payment does not equal the cost of one month, IMRF will keep your payment on deposit until you have paid enough to purchase one month.
Interest is added every year
On January 1 of each year, interest is added to your cost. We provide you with costs for purchasing the service in the current year and in the next two years.
Did you know?
Purchase of any service credit is voluntary. You are not obligated to purchase any or all the service credit just because you receive a payment schedule.