Pension Options & Refunds at Retirement

for Tier 2 Regular Plan Members

IMRF wants to start your pension payments as soon as possible after you retire, so your initial payment amounts are estimated and based on:

Once we receive final wage information from your employer, we calculate your final pension amount. 

If you are retiring reciprocally, you must apply for retirement with each of your reciprocal systems at the same time. We cannot approve your IMRF pension until we have confirmation from all of your reciprocal systems that you have filed an application with them. 

Pension Options

At retirement, you are always eligible for the Standard pension option. If you are eligible for any additional pension payment or retirement refund options (in addition to the Standard pension option):

Standard Pension

Under the standard pension you receive a payment every month after you retire for the rest of your life. Annual increases begin whichever January first below is later:

Each January 1 increase will be calculated on your original benefit amount, and will be the lower of:

Special Needs Annuity

With the Special Needs Annuity option, you choose to receive a smaller IMRF pension so you can provide a lifetime pension for someone else upon your death.

For more information about the Special Needs Annuity, click here.

Retirement Refund Options

Voluntary Additional Contributions

If you participate in the Voluntary Additional Contribution (VAC) program and leave your VAC on deposit with IMRF until retirement, you may choose to receive your VAC as either:

Surviving Spouse Contributions

If you do not have an eligible spouse when you retire (married or in a civil union for at least one year before you stopped participating in IMRF, and still married to this spouse on your pension effective date), IMRF will refund your surviving spouse contributions, with interest. You can either:

SLEP or ECO Service Contributions

If you have SLEP and/or ECO service credit but do not qualify for a pension under one or both of these plans at retirement, these contributions will be refunded to you with interest. You can either:

Additional Information About Converting Lump Sum Refunds into Annuities: