General Memo 605

Paperwork

Public Act 96-1495

January 17, 2011

On December 30, 2010, the governor signed Senate Bill 3538 (Public Act 96-1495). This new law creates a second tier of IMRF benefits for members who are first enrolled in IMRF’s Sheriff’s Law Enforcement Personnel (SLEP) plan on or after January 1, 2011.


This new law does NOT affect members currently participating in IMRF SLEP.

IMRF created a chart that provides a comparison between SLEP Tier 1 and Tier 2.

Please note some key provisions of this new law:

Estimated impact of Tier 2 on SLEP employer contribution rates
Our actuaries estimate that the initial normal cost of the SLEP Tier 2 plan will be 7.92%, a 33.8% decrease from the current normal cost of 11.97%. Over time, this reduction will increase.

For SLEP employers, the effect on their normal cost rate will occur gradually as new public safety employees are enrolled in SLEP Tier 2. IMRF will use a blended rate for SLEP which will be weighted based on the ratio of SLEP Tier 1 and Tier 2 members.

Year 2013 will be the first year SLEP employer contribution rates will be impacted by Tier 2. Our actuaries estimate that the blended normal cost for SLEP will be 11.73%, a decrease of 2% from the current normal cost.

By 2021, our actuaries estimate that the blended normal cost for both SLEP Tier 1 and Tier 2 on an IMRF-wide basis will be 10.18%, a 15% decrease from the current normal cost of 11.97%. The impact of SLEP Tier 2 on an individual SLEP employer’s rate will depend on the number of SLEP Tier 2 members in its workforce.

Questions?
If you have any questions, please call an IMRF Member Services Representative at 1-800-ASK-IMRF (1-800-275-4673) 7:30 A.M. to 5:30 P.M., Monday through Friday or send a secure message to IMRF.

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