Section 6 - IMRF

Illinois Municipal Retirement Fund Member Accounts / Past Service / Employer Resolutions / SECTION 6
Retired IMRF members receiving IMRF pensions will have their pensions recalculated after payment is
received. The higher benefit amount will be effective the month after IMRF receives the payment for past
service. For example, If the payment is received in July, the higher benefit will be effective in August.
4. Payment Plans
Member payments apply to specific types of past service that require payments from the member to IMRF.
Those types of past service are:
Omitted service
Prior service
Retroactive service
Reinstatement of forfeited service (repayment of a refund)
Benefit Protection Leaves for unpaid absences
Military service under the Uniformed Services Employment and Re-employment Rights Act
Certain military service under Illinois law
Elected County Official Plan service
Out-of-state service rendered with a local governmental employer in another state covered by a public
employee retirement program.
Conversion of Regular Plan service to SLEP Plan service
Member payments for past service may be remitted in a lump sum paymentor in monthly unit payments
remitted by the member, or in monthly tax-deferred installments:
a. The Lump Sum Plan allows the member to purchase all past service credits with a one-time single
lump sum payment. The lump sum payment may be made with after-tax funds or with a rollover
using tax-deferred funds.
b. The Unit Payment Plan allows a member to pay past member contributions and interest in
installments (i.e., “unit payments”). Members may purchase one or more months (one or more
“units”) of past service at a time. However, members may not purchase fractions of a month, nor can
they purchase more than the number of months indicated on the payment schedule. The frequency
and number of months purchased can be determined and paid for at the member’s convenience.
IMRF members are advised of payment options when they apply for past service. The payment plans are
offered and explained in a Payment Schedule which is issued to the member after a properly executed past
service application has been filed and accepted by IMRF.
If the member is using the Lump Sum or Unit Payment Plan, the member may be able to use tax-deferred
funds from a traditional Individual Retirement Account (IRA) or from another qualified plan or 457 or 403(b)
plan to purchase part or all of the past service credit. The member would request from IMRF Form 6.01,
“Request for Rollover Approval for Past Service”.
.
The member and a representative from his or her qualified plan or financial institution would complete the
form. After IMRF receives the completed form, we will determine if the funds are eligible for rollover into
IMRF and advise the member accordingly.
If employer pays the member cost:
In situations where an employer agrees to pay the member’s cost, the employer must treat the payment as
earnings paid to the member. All applicable deductions must be withheld. (See Paragraph 4.24 I. Employer
Paid Member Contributions.)
January 2014 Page 257