Planning for Retirement

If you are a benefits-eligible non-union or AFSCME employee, you are enrolled in either the IMRF Tier 1 or Tier 2 plan. Your tier level is dermined by your hire date and determines a number of factors, including when you are eligible to retire.

If you were hired before January 1, 2011, you are in the Tier 1 Plan.  This means you can retire when:

  1. You are at least age 55 (full retirement age is 60); and

  2. You have eight years of service credit (including reciprocal retirement system service credit).

Your highest average earnings will most likely come later in your IMRF career. If this is the case, the FRE used to calculate your pension will be your highest total earnings during any 48 consecutive months within your last 10 years of IMRF service, divided by 48. Usually, this is the average of the last 48 months of service. If your highest earnings occur earlier in your career, IMRF will use a different formula. When you retire, IMRF will calculate your pension using both formulas and will use the figure that benefits the employee most. Learn more about IMRF's Tier 1 Plan

If your hire date is on or after January 1, 2011, you are in the Tier 2 Plan.  You can retire when:

  1. You are at least age 62 (full retirement age is 67); and

  2. You have at least 10 years of service credit (including reciprocal retirement system service credit).

Your pension is calculated based on your highest average earnings. If your highest earnings occur later in your career, your total earnings during any 96 consecutive months within your last 10 years of IMRF service will be divided by 96. Usually, an employee's highest earnings rate occurs during the last 96 months of service. If your highest earnings occur earlier in your career, IMRF will use a different formula. When you retire, IMRF will calculate your pension using both formulas and will use the figure that benefits the employee most. Learn more about IMRF's Tier 2 Plan

For either tier, your total pension at retirement cannot exceed 75% of your final rate of earnings.

The Illinois Municipal Retirement Fund (IMRF) has created a comprehensive booklet to assist you with planning for retirement, which you can download by clicking the button below.

Other Resources

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