1999 IMRF Comprehensive Annual Financial Report

Actuarial SectionSummary of BenefitsThis is a brief plan description of IMRF benefits. Additional conditions and restrictions may apply. A completedescription is found in Article 7 of the Illinois Pension CodeGeneralIMRF serves more than 2,700 employers including cities, villages, counties, school districts, townships and variousspecial districts, such as parks, forest preserves and sanitary districts. Each employer builds up an account to providefuture benefits for its own employees.Employees of these employers are required to participate if they work in an IMRF qualified position. An IMRFqualified position is one that will equal or exceed the employer’s annual hourly standard; the standard is either 600or 1,000 hours a year.IMRF has three benefit plans. The Sheriff ’s Law Enforcement Personnel (SLEP) plan is for sheriffs and deputysheriffs. Forest preserve districts may adopt the SLEP plan for their law enforcement personnel. Counties mayadopt the Elected County Official (ECO) plan for their elected officials. After a county has adopted the ECOplan, participation is optional for the elected officials of that county.Both the employee (member) and the employer contribute toward the retirement benefits. Members contribute apercentage of their salary. The percentage depends on the plan in which the member participates. Regular memberscontribute 4.5 percent, SLEP members contribute 6.5 percent, and ECO plan members contribute 7.5 percent.Employer contributions are actuarially calculated for each employer. Employers pay most of of the member’s andsurvivor’s pension cost and all of the cost for death and disability benefits.VestingMembers are vested for pension benefits when they have at least eight years of service credit. SLEP members arevested for a SLEP pension when they have at least 20 years of SLEP service credit. SLEP members with more thaneight years of service but less than 20 years of SLEP service will receive a Regular pension.RefundsNon-vested members who stop working in an IMRF qualified position can receive a lump sum refund of theirIMRF contributions. Vested members can receive a lump sum refund of their IMRF contributions if they are notretirement age or they may leave the contributions with IMRF until they reach retirement age.Members who retire without an eligible spouse (married to the member at least one year before the memberterminates IMRF participation), will receive a refund of their surviving spouse contributions with interest.If upon a member’s death all of the member contributions were not paid as a refund or pension, the beneficiarywill receive the remainder of the IMRF contributions, with interest.Pension CalculationsA Regular IMRF pension is:◆ 1-2/3 percent of the final rate of earnings for each of the first 15 years of service credit, plus◆ 2 percent for each year of service credit in excess of 15 years.The maximum pension at retirement cannot exceed 75 percent of the final rate of earnings.A SLEP pension is:◆ 2-1/2 percent of the final rate of earnings for each of the first 20 years of service, plus◆ 2 percent for each year of service between 20 and 30 years of service, plus◆ 1 percent of the final rate of earnings for each year of service credit in excess of 30 years.The maximum pension at retirement cannot exceed 75 percent of the final rate of earnings.60 Illinois Municipal Retirement Fund