Section 6 - IMRF

Illinois Municipal Retirement Fund Member Accounts / Past Service / Employer Resolutions / SECTION 6
6.40 6. Prior Service - “Application For Prior Service Credit” (Form 6.07, Exhibit 6K)
The Pension Code provides for service credit for qualifying employment before the employer (unit of
government) joined IMRF. This type of service credit is called prior service credit.
a. Unit of government joined IMRF on or before January, 1, 1998
Members who rendered service in an IMRF covered position prior to the date their governmental unit
entered IMRF may receive all of their prior service credit at no cost to the member.
b. Unit of government joined IMRF after January, 1, 1998
Members who rendered service in an IMRF covered position prior to the date their governmental unit
entered IMRF may receive five years of their prior service credit or 20 percent of their total prior
service, whichever is less, at no cost to the member.
The member can purchase any remaining prior service by paying the member contributions, plus
interest. A member’s eligibility to purchase the remaining years of service is not discretionary with the
unit of government. The salary used to calculate the cost to purchase the prior service is the salary as
of the date the unit of government joined IMRF.
The member may be eligible to use funds from a traditional Individual Retirement Account (IRA) or
from another qualified plan or 457 or 403(b) plan to purchase the prior service credit. (See paragraph
6.40 C. Member Application and Payments.)
Regardless of when the unit of government joined IMRF, a member would apply for prior service by
submitting Form 6.07 under the following conditions:
1. The member must be employed in a covered position on the date the governmental unit enters
IMRF, or
2. The governmental unit entered IMRF but has now returned to work for that governmental unit and
has completed two years of contributing service after re-entry.
There is no immediate payment required of the employer. The cost to the governmental unit is
reflected in its future employer contribution rates.
6.40 7. Leave of Absence - “IMRF Benefit Protection Leave” (Form 6.32, Exhibit 6Y)
Members who take an authorized IMRF Benefit Protection Leave may receive service credit for up to a
maximum of 12 months over their entire career, provided they pay the IMRF member contributions plus
applicable interest, and the governing body adopts an authorizing resolution. Benefit Protection Leave service
is only for periods the member was on unpaid leave.
The member may be eligible to use funds from a traditional Individual Retirement Account (IRA) or from
another qualified plan or 457 or 403(b) plan to pay for the leave of absence. (See paragraph 6.40 C. Member
Application and Payments.)
To establish the credits, Form 6.32 (Exhibit 6Y) may be filed before, during, or anytime after the leave
period, provided the member is still actively participating in IMRF or a reciprocal system.
No immediate payment is required of the employer. The cost will be reflected in future contribution rates.
A member on an authorized IMRF Benefit Protection Leave will be afforded IMRF death and disability
protection if, before the leave period begins, the member has at least one year of contributing service and
Form 6.32 is filed with IMRF. An IMRF Benefit Protection Leave application filed after a disability or death
occurs will not retroactively qualify the member nor his or her beneficiaries for benefits.
When an IMRF Benefit Protection Leave is taken in conjunction with any paid sick leave, bonus day,
vacation time, or other paid leave, the leave of absence officially starts when the paid leave ends (where paid
leave is taken prior to the official leave of absence), and officially ends when paid leave begins (where paid
time follows the leave of absence).
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