Applying for Retirement FAQs

One of the busiest times that retirement applications are submitted to IMRF is April through June. Below are some answers to some of the most commonly asked questions members have as they are applying for retirement.

What is my termination date?

One of the key dates to know for your retirement is your termination date because this will determine your pension effective date. Your termination date is the last day that you are employed by your employer.

Often, your last day of work is your termination date. However, if you use vacation or sick days, your termination date might be later than your last day of work.

To eliminate confusion, you should confirm with your employer what your termination date will be, as this will determine your pension effective date.

What is my pension effective date?

If you have met all service and age eligibility requirements, your pension effective date is the first of the month following your termination date.

When should I apply for retirement?

IMRF members should apply for retirement between 30 a 60 days before their pension effective dates. Applying more than 90 days before your pension effective date can cause delays in the application process.

For instance, if your termination date is October 15, and your pension effective date is November 1, the ideal time to apply for your retirement is between September 2 and October 2.

How long does it take to process a retirement application?

It will take approximately eight weeks to process your retirement after the later of:

• the date IMRF receives all required information from the retiree, their employer, and, if applicable, the reciprocal pension where they participated OR
• your pension effective date.

The chart below provides an example of possible retirement effective date, pension effective date, and first pension payment.

How do I apply for retirement?

IMRF has a variety of resources to help you through the retirement process, including:

• A Retirement Checklist.
• A description of what IMRF does after receiving an application for Tier 1 and Tier 2 members.
• A step-by-step guide for applying for your pension in Member Access.
• Information about what to do after applying for retirement.

What can delay your retirement application?

The biggest cause of delays in processing your retirement application is because not all the paperwork required by IMRF is received at the same time. This is particularly true when additional documents are required for the special circumstances below.

Divorce Agreements and Qualified Illinois Domestic Relations Order (QILDRO)

If you are divorced, you are required to submit a copy of your divorce decree when you apply for retirement.

However, in order to divide your IMRF benefits after divorce, you must also submit a QILDRO Form. If the QILDRO Form provides for any percentages of benefits to be paid to an ex-spouse, then a QILDRO Calculation Order is also required. These court orders can also be submitted before retirement.

Additionally, IMRF will contact the person ordered to receive a portion of the benefits and they will need to confirm their information, so please make sure that all their information is correct.

Purchase of Past Service

IMRF members can buy back service credit under certain circumstances, including paying back a refund, not receiving service credit from an employer, working for an employer before they participated in IMRF, and more.

Rules for purchasing service back can vary if you are a Tier 1 or Tier 2 member.

If you are looking to buy back service credit, doing this BEFORE you begin applying for retirement will ensure that there is no delay in processing your application.

Reciprocal Service

If you have worked for another pension system, you can increase your retirement income by combining service credit in another Illinois public pension plan.

To get a clearer picture of what your pension will look like, request a reciprocal pension estimate through the system you most recently worked at, no more than 5 years into the future.

The pension estimate in your Member Access account does not include reciprocal systems and you must call IMRF at 1-800-ASK-IMRF (275-4673) or send a secure message to request a reciprocal pension estimate.

It may take up to 6 months to receive your pension payment when applying to multiple systems.

If you are fully vested in your IMRF pension, then you can choose to receive an estimated pension payment based on your IMRF pension only, while the systems share information to determine what your full payment will be.

Am I eligible to take part in the Early Retirement Incentive?

Some employers allow their staff to take part in the Early Retirement Incentive (ERI) program, which allows members to purchase up to five years of service credit at retirement. You must also meet the age and service requirements based on your pension tier.

The Early Retirement Incentive varies slightly based on whether you are a Tier 1 or Tier 2 member. Talk to your employer to see if you are eligible to participate in this program.

If you are retiring under using the ERI Program, you will need to complete a paper retirement application. Do not apply through your Member Access account.

Other Tips for Managing Your Retirement Application

• Make sure your personal email address is used to communicate with IMRF. Call 1-800-ASK-IMRF (275-4673) and choose "Member Access Help" (option 4) to connect to a representative.
• Meet with your financial advisor or accountant ahead of submitting your retirement application to ensure you know how to fill out forms like the W-4P tax withholding forms.
• Have the following documents ready to submit with your application
• • Birth certificate
  • Marriage or civil union certificate (if applicable)
  • Spouse's birth certificate (recommended if applicable)
  • Divorce decree (if applicable)
  • W-4P tax withholding form
  • Designation of beneficiary form (including their social security numbers)
  • Direct deposit form
  • Information about reciprocal service in another pension system