Enjoy retirement—don’t put your financial security at risk!

How returning to work can affect your IMRF pension

October 2013

Thinking of returning to work? Call 1-800-ASK-IMRF (1-800-275-4673)

Congratulations!Congratulations on your retirement from the Illinois Municipal Retirement Fund (IMRF). Your IMRF pension is a valuable benefit you worked hard to earn. To protect this benefit, you need to understand how your pension could be affected if you return to work after retirement.

If you are thinking about returning to work for an IMRF employer, you must call IMRF before you accept a position with an IMRF employer. Taking a few minutes now to review this brochure can avoid serious problems later.

Return to work violations are increasingThe number of return to work violations uncovered by IMRF has been increasing. These violations can result in a retiree owing a significant amount of money to IMRF for unpaid contributions and pension payments received during this return to work period.

The amount owed can take years to repay, and can significantly affect a retiree’s financial well-being.

Rules are complex and can changeReturn to work rules are complex and vary depending upon your work history, the employer’s hourly standard, how your pension was calculated, and the return to work position you are considering.

In addition, return to work laws can change if new legislation is introduced. There are too many situations to cover in this publication—you must contact IMRF to discuss your individual situation.

Questions for your IMRF Member Services Representative:

• What is my new employer’s hourly standard?

• Does my pension include reciprocal service credit?

• Do I have previous service credit with this employer?

• Which Tier did I retire under?

Be sure to also discuss...

• The expected hours of your return to work position

• If you retired under ERI (Also known as 5+5)

• If you are planning to work as an Independent Contractor

• If you are running for elected office after retirement

Rest easy! Your IMRF pension will continue if you return to work for a private sector company (a company not run by local, state, or federal government).

Thinking of returning to work? Call 1-800-ASK-IMRF (1-800-275-4673)

Return to work rules have changedPublic Act 98-0389 changed retiree return to work rules effective August 16, 2013. The new rules are outlined below. However, you should ALWAYS contact IMRF if you return to work for an IMRF employer in any capacity. If you return to work...

In a position that qualifies for IMRF participationYou are immediately enrolled in IMRF and your pension is suspended.

In a position not expected to qualify for IMRF participationIn the 12 months following the date of employment:You work below 599/999 hours Your pension payments continue.

You reach 599/999 hours If you want your pension payments to continue, you would: • Stop working for that employer until the one year anniversary of

your employment date • On that date, your return to work period is reset for the next 12

months. • You could return to work for that employer again after this date

until you again reach 599/999 hours in the following 12 months.

You work 600/1,000 hours or more

• You are re-enrolled in IMRF. • Your pension payments are suspended until you stop working for

the employer.• Once you stop working for that employer and your pension pay-

ments resume, the earliest date you could return to work for that same employer without stopping your pension is one year from the last date of employment.

For example, if you left your employer on October 2, 2014, the earliest you could return to work for that employer without an effect on your pension would be October 2, 2015.• If you return to work for that same employer sooner than one year• You must be re-enrolled in IMRF immediately regardless of

expected hours of your position and• Your pension payments are again suspended.

You unexpectedly work 600/1,000 hours or more

If you want your pension payments to continue, you would: • Immediately terminate your employment relationship with that

employer. You must terminate employment in the same month you exceed 599/999 hours.

• If you continue working, you will be re-enrolled in IMRF and your pension payments stopped. (See above rules under, “You work 600/1,000 hours or more.”)

Illinois Municipal Retirement Fund 1-800-ASK-IMRF (1-800-275-4673) www.imrf.org

For your own financial protection you must contact IMRF directly—in addition to your employer—regarding return to work rules.

Do not rely on an employer’s interpretationDo not rely on an employer’s knowledge of return to work rules in order to make your decision about returning to work.

Many factors are involved in whether your pension will be affected upon your return to work, and an employer may not be aware of all of the circumstances that affect your individual situation.

Serious financial consequencesIf you return to work and are not enrolled when you should be, your cost to pay back pension payments you should not have been receiving, plus IMRF member contributions you should have been making, can have serious financial consequences for you.

You are responsible for repayment to IMRFEven if it was the employer’s mistake in misinterpreting the return to work rules, YOU are responsible for any financial repayments you are required to make to IMRF.

If you read nothing else—read this!

A few minutes now can avoid serious problems in the future.

Call IMRF before you make your decision to return to work!

Illinois Municipal Retirement Fund Public Act 98-0389 Return-to-Work Rules: A guide for Retired Members

Effective August 16, 2013 Revised September 5, 2013

 If  you  return  to  work  for  an  IMRF  employer:  In a position that qualifies for IMRF participation You are immediately enrolled in IMRF and your pension is suspended. In a position not expected to qualify for IMRF participation In the 12 months following the date of employment:

You work below 599/999 hours

Your pension payments continue.

You reach 599/999 hours If you want your pension payments to continue, you would:

• Stop working for that employer until the one year anniversary of your employment date

• On that date, your return to work period is reset for the next 12 months.

• You could return to work for that employer again after this date until you again reach 599/999 hours in the following 12 months.

You work 600/1,000 hours or more • You are re-enrolled in IMRF.

• Your pension payments are suspended until you stop working for the employer.

• Once you stop working for that employer and your pension payments resume, the earliest date you could return to work for that same employer without stopping your pension is one year from the last date of employment. For example, if you left your employer on October 2, 2014, the earliest you could return to work for that employer without an effect on your pension would be October 2, 2015.

• If you return to work for that same employer sooner than one year

• You must be re-enrolled in IMRF immediately regardless of expected hours of your position and

• Your pension payments are again suspended. You unexpectedly work 600/1,000

hours or more If you want your pension payments to continue, you would:

• Immediately terminate your employment relationship with that employer. You must terminate employment in the same month you exceed 599/999 hours.

• If you continue working, you will be re-enrolled in IMRF and your pension payments stopped. (See above rules under, "You work 600/1,000 hours or more.")