ABCs of IMRF

July 2, 2026

There are many terms that IMRF commonly uses to describe benefits and policies. Below is a list of some of the most commonly used terms and what they mean.

13th Payment

Officially known as the Supplemental Benefit Payment, this is an additional payment (which is included in the July pension payment) that was created to help counteract the impact of inflation. The amount of the 13th Payment changes every year and is based on the total payroll of IMRF employers. Retirees must have received 12 monthly pension payments before they become eligible to receive the 13th payment. Learn more about the 13th Payment for Tier 1 or Tier 2 members.

Active Member

People who are currently working in a participating position for an IMRF employer, or currently receiving IMRF Disability benefits. Learn more about benefits for Active Members by clicking on the "Members" tab on the imrf.org homepage and selecting the correct pension and tier.

Annuitant Statement

At the end of each calendar year, retirees receive their Annuitant Statement in Member Access. This document outlines the monthly pension payments they will receive over the next calendar year and other important information including benefits for their surviving spouse or other beneficiaries after a retiree's death.

Annuity

An annuity is a contractually required payment. For IMRF members, their annuity is the monthly pension payments they receive.

Annual Comprehensive Financial Report

More commonly referred to as the ACFR, this is a detailed financial report that details all the investment gains (and losses) during the previous calendar year. This also provides information about IMRF's funded status and overall financial health. This report is certified by third-party auditors to ensure that all the information is correct.

Beneficiary

These are the individual(s) designated by an IMRF member to receive benefits after their passing. To ensure beneficiaries can more easily receive these benefits, it is important to keep beneficiary information up to date in Member Access.

Benefit Processing Time

The time it takes benefit applications, like retirement, refunds, and disability, to be fully approved. It will take approximately eight weeks to process your benefit after the later of - the date IMRF receives all required information OR your benefit or pension effective date.

Certificate of Benefits

• A document a IMRF member receives when they retire. For each member this document will include:
• The amount of their monthly pension
• Effective date of their monthly pension
• Amount of service credit
• Details about death benefits

Early Retirement Incentive (ERI)

Some IMRF employers offer this program to allow employees to retire early and purchase up to five years of IMRF service credit. There are some differences in the program for Tier 1 and Tier 2 members.

For example, if an employer allows IMRF members to take advantage of the ERI, they must be at least 50 years old and have at least 20 years of service if they are a Tier 1 member or be at least 57 years old and have at least 20 years of service if they are a Tier 2 member.

ECO

Some county elected officials had the opportunity to participate in the Elected County Official (ECO) Plan with IMRF. This program was closed to new participants as of August 8, 2011.

Employer Contribution

Employers who participate in IMRF make contributions to help pay for the pensions for current and future retirees. Their employer contribution rate is calculated every year to ensure that each employer account is 100% funded.

Final Rate of Earnings (FRE)

This is an average of the highest earnings that is used to calculate what an IMRF member's pension payment will be. This rate is determined differently for Tier 1 and Tier 2 members.

Inactive Member

This is a person who has previously worked for an IMRF employer but is not currently working in an IMRF participating position and not receiving IMRF Disability benefits. Learn more about benefits for Inactive Members by clicking on the "Members" tab on the imrf.org homepage and selecting "Inactive Members."

Investment Portfolio

The funds IMRF uses to earn returns to help IMRF become 100% funded and help pay for all current and future benefits. IMRF has a long-term investment strategy that helps minimize fluctuations in financial markets.

Member Access

Member Access is secure website that allows members to submit questions, apply for benefits, and get important information from IMRF. To learn more about everything members can do in Member Access, visit the Member Access Learning Center.

Member Access Learning Center (MALC)

Interested in learning about how to apply for retirement? Want to get the latest Member or Annuitant Statement? The Member Access Learning Center has "how to" guides to help members learn all about their Member Access account.

Member Contribution

With every paycheck, IMRF members contribute to their retirement. Regular plan members contribute 4.5% and SLEP plan members contribute 7.5%.

Member Statement

This annual statement is created every spring and provides details to active and inactive members about their estimated pension payment and explains additional benefits that they have earned through their IMRF participation. Your Member Statement is available in Member Access.

Past Service Credit

An IMRF member has the opportunity may have past service that would allow them to purchase service credits that would apply to their pension. Examples of Past Service Credit that could be purchased include:

• Reinstated service (paying back a previous IMRF refund)
• Omitted service (an employer incorrectly omits a member from IMRF participation)
• Military service
• Leave of absence
• Retroactive service (earn IMRF credit for working for an Employer before the employer begins participating with IMRF)
• Out of state service

Learn more about the past service for Tier 1 and Tier 2 members.

Pension Dollar

The Pension Dollar illustrates how contributions from members, employers, and investment returns work together to fund current pensions.

Pension Effective Date

This is the first date an IMRF member begins receiving their IMRF pension. Typically, this is the first of the month following their termination date if they meet the service and age requirements to retire.

Popular Annual Financial Report (PAFR)

The Popular Annual Financial Report (PAFR) is shorter than the Annual Comprehensive Financial Report but highlights some of the most important financial information from IMRF, including the size of the investment portfolio, net rate of return, and the actuarial funded status.

QILDRO

After a divorce, an IMRF member's pension may be an asset that gets divided. If that happens, then they will need to submit a Qualified Illinois Domestic Relations Order (QILDRO, pronounced kwil-dro) when they retire. This order will instruct IMRF on how their IMRF benefits must be divided according to their divorce settlement.

Reciprocal Service

Several public pension systems in Illinois allow members to combine service credit through the Illinois Reciprocal Act. Based on eligibility, the Illinois Reciprocal Act allows members to receive pension benefits from each system a member may have participated with. To be eligible for reciprocal service, members must have at least 12 months of service credit with each pension system. There may be an exception to this 12 month rule if you worked in school as a paraprofessional or teacher's aide.

To fully understand how reciprocal service impacts your benefits, you should request a pension estimate from IMRF by calling 1-800-ASK-IMRF (275-4673).

Please note, reciprocal pension estimates:

• Must be requested with the current (or last) system you participated with.
• If IMRF is the last system the estimate must be started by calling IMRF or sending a secure message to provide information about other systems you worked with.
• Estimates from multiple systems may take up to 6 months to be completed.
• Pension estimates should only be requested when members are within five years of retirement.

Refund

To receive a refund of IMRF contributions, members must not currently be employed by an IMRF employer.

Both active members and inactive members can request a refund of their Voluntary Additional Contributions (VAC). You must withdraw all your VAC contributions as you cannot take a partial refund.

Regular Plan

Approximately 98% of IMRF members participate in the Regular Plan. Learn more about Regular Tier 1 and Tier 2 pensions by clicking on the "Members" tab on the imrf.org homepage and selecting "Tier 1 Regular Plan" or "Tier 2 Regular Plan."

Retiree

Someone who worked for IMRF and is receiving a monthly pension payment. Also known as Pensioner or Annuitant.

Reversionary Pension

IMRF members have the option to receive a Reversionary Annuity, which means taking a smaller pension when you retire and providing a monthly pension to any one person you choose. This is separate from IMRF surviving spouse pension.

Someone that may receive a Revisionary Pension could be:

• A spouse, which will allow them to receive a revisionary pension and surviving spouse pension.
• A spouse who is not eligible for a surviving spouse pension.
• Anyone else, such as a child or an ex-spouse. This person does not need to be a relative.

Service Credit

IMRF members earn service credit every month they work for an IMRF employer and have deductions from their earnings for IMRF contributions. The amount of service credit they earn is used to calculate their final pension benefit.

SLEP

The Sheriff's Law Enforcement Plan, most commonly known as SLEP, is a separate IMRF pension plan available to county sheriffs, deputy sheriffs, forest preserve rangers, airport police and certain police chiefs. These plans differ from the Regular pension plan. Learn more about SLEP Tier 1 and Tier 2 pensions by clicking on the "Members" tab on the imrf.org homepage and selecting "Tier 1 SLEP Plan" or "Tier 2 SLEP Plan."

Termination Date

An IMRF member' s termination date is determined by their IMRF employer and is typically the last day a member physically works. Certain situations such as IMRF Disability benefits or Collective Bargaining Agreements may make this date later than the last day physically worked. If an IMRF member is retiring, the Termination Date is a key factor in determining what the member's pension effective date will be.

Tier 1

IMRF members who began working for an employer that participates in an Illinois public pension plan prior to January 1, 2011.

Tier 2

IMRF members who began working for an employer that participates in an Illinois public pension plan beginning January 1, 2011, or later.

Unused, Unpaid Sick Time

When an IMRF member retires and has unused, unpaid sick days, they may be eligible to use unpaid, unused sick days to increase their service credit that is used to calculate their final pension. Learn more about how unused, unpaid sick time can be applied for Tier 1 and Tier 2 members.

Vested

An IMRF member is considered vested once they have reached the required service credit requirement to qualify for a pension. There are different service credit requirements for Tier 1 and Tier 2 members.

Voluntary Additional Contributions (VAC)

This is an optional retirement savings plan to help IMRF members save for retirement. Participants can contribute up to 10% of their salary, post-tax, and are guaranteed to earn interest at the rates being assumed by IMRF, currently 7.25%. Learn more about how this program works for Tier 1 and Tier 2 members.