Section 6 - IMRF

Member Accounts / Past Service / Employer Resolutions / SECTION 6
Illinois Municipal Retirement Fund
More than one successor unit of government
The dissolving employer must provide the ERI Cost Study to each successor, and a majority of the successors must
approve the ERI. Copies of the successor units’ resolutions approving the ERI must be available to IMRF upon
request.
No successor unit of government and the law does not specify responsibility for the IMRF assets
and obligations
The IMRF Board of Trustees must approve the ERI.
IMRF will not implement an ERI that does not conform to these requirements. If IMRF discovers that these
requirements were not met after paying an ERI enhanced pension to a member who retired under ERI:
The member will lose the ERI enhancements and be required to pay IMRF the difference between the ERI
enhanced pension and the pension he or she would have received without the ERI—less the amount the
member paid for the ERI.
In addition, if the member was less than the minimum retirement age (age 50 for SLEP, age 55 for Regular
Tier 1 and ECO Tier 1, age 62 for Regular Tier 2 ), the member will be required to repay IMRF for all
pension payments received that he or she was not eligible for—less the amount the member paid for the ERI.
6.60 I. To Adopt Amortization Period for IMRF Early Retirement Incentive (Form 6.78, Exhibit 6LL)
Once a unit of government adopts the IMRF Early Retirement Incentive (ERI), an amortization period of 10 years
(to pay the employer costs) is assumed.
If an employer would like an amortization period of less than 10 years, it would submit IMRF Form 6.78,
“Resolution - To Adopt Amortization Period,” doing so.
Refer to Paragraph 5.20 C. IMRF Early Retirement Incentive (ERI) for more information on the IMRF ERI or to
Paragraph 7.23 Financing the Cost of IMRF Early Retirement Incentive (ERI) for information on financing ERI
pensions.
6.60 J. To Authorize Pension Service Credit for Employees Previously Barred by Age (Form 6.79,
Exhibit 6MM)
Form 6.79, Suggested Resolution to Authorize Pension Service Credit for Employees Previously Barred by Age,
has been discontinued.
6.60 K. To Adopt Alternative Benefit Program for County Officers (ECO)
The Elected County Official (ECO) Plan is closed to new members as of August 8, 2011. Counties may no longer
adopt the ECO plan.
6.60 M. For Employer Pick-Up (Payment) of Member Contributions Required for Purchase of Extra
Service Under the IMRF ERI (Form 6.85, Exhibit 6RR)
If a unit of government adopts the IMRF Early Retirement Incentive (ERI), the unit may also choose to pay the
member cost for the ERI. However, that payment will be taxable to the member unless the governing body passes a
resolution (IMRF Form 6.85, “Resolution - For Employer Pick Up of Member Contributions”) specifically stating
that the contributions are being made in lieu of the member’s contributions and that the member is prohibited from
receiving any part of those contributions.
IMRF is not suggesting that an employer pay the member’s ERI costs. This information is provided in the event
such action is considered. If the employer does not pass the “pick-up” resolution, the employer payment of the
member’s ERI contributions will be taxable income to the member in the year it is paid and must be included on
the member’s W-2.
Page 262 January 2014