IMRF Board Rules Begin Phase-Out of Irregular Service
August 28, 2020
The IMRF Board of Trustees recently passed Board Resolution 20-08-08(b), which begins a phase-out of the irregular service policy. This memorandum summarizes the recent rule change regarding this type of service credit.
Most Employers and Members Will Not Be Affected by the New Rules
The vast majority of IMRF members earn either regular or seasonal IMRF service credit. Only a small portion of current IMRF members receive irregular service credit. This type of service credit has been used for employees who work year-round (and meet the hourly standard) but are paid less frequently than once per month. Irregular service has been used to allow these employees to receive twelve months of service credit in a year, even if the member had not received reportable earnings in each calendar month.
No Irregularly Paid Employees May Be Enrolled with Irregular Service
As of August 28, 2020, no new irregularly paid employees may be enrolled in IMRF with irregular service. If an employee receives pay less frequently than once per month but works year-round for the minimum number of hours required for IMRF participation, that employee will only receive service credit in the month(s) that the employee receives reportable earnings. For an employee to receive twelve months of service credit, the employer must adjust the pay schedule so that the employee receives reportable earnings in each month.
Employees Currently Receiving Irregular Service Credit May Transition to Another Type of Service Credit
Any employees who are enrolled under irregular service as of August 28, 2020 will continue to receive irregular service through December 31, 2020. Irregular service will no longer be granted to any employee as of January 1, 2021. Employers with employees who are currently enrolled with irregular service credit should contact IMRF to see how these employees may be transitioned to regular or seasonal service credit. Irregularly paid employees whose pay schedules have not been adjusted as of January 1, 2021, will only receive service credit in the months that the employee receives reportable earnings.
Questions
If you have questions about irregular service, please contact IMRF’s Legal Department at (630) 368-5365.