Retirement Plans
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Non-Union Employees
IMRF Pension Plan
All benefits-eligible non-union employees participate in the City's defined benefit retirement plan through the Illinois Municipal Retirement Fund (IMRF). A defined benefit plan offers the security of a guaranteed return on contributions, and you will receive benefits for as long as you live. Both the City and employees contribute to pensions. Employees hired on or after January 1, 2011 are in the Tier 2 level of benefits. Both your pension amount and the age that you can retire at are determined in part by how much service credit you have. Your service credit is based on how long you have worked in a qualified position.
457 Voluntary Retirement Supplement Plan
Employees may also contribute to a 457 Deferred Compensation Plan through ICMA-RC. This supplemental retirement plan is funded through employee contributions only and no service credit is required. Participants in this plan can take distributions from the plan upon separation from City service without an IRS penalty regardless of the employee’s age. Employee contributions to this plan are pre-taxed and tax deferred.
Retirement Health Savings Account
Eligible employees who have accrued a sick leave balance of at least 300 hours on June 30th of each year are automatically enrolled in Vantage Care, the City's post-retirement medical savings benefits program. There is no vesting period and no plan-defined limit on the amounts that may be contributed.
All contributions and interest earned in these accounts are tax-free to you as long as you pay for or get reimbursed for qualified medical care costs (premiums, deductibles, etc.). Typically, employees receive around $1.40 in benefits for every $1 deposited into their account.
AFSCME Employees
IMRF Pension Plan
AFSCME employees participate in the City's defined benefit retirement plan through the Illinois Municipal Retirement Fund (IMRF). A defined benefit plan offers the security of a guaranteed return on contributions, and you will receive benefits for as long as you live. Both the City and employees contribute to pensions. Employees hired on or after January 1, 2011 are in the Tier 2 level of benefits. Both your pension amount and the age that you can retire at are determined in part by how much service credit you have. Your service credit is based on how long you have worked in a qualified position. In addition, AFSCME employees who separate in good standing with at least 10 years of completed service are eligible to receive a payout for unused sick leave at a pro-rated amount based on years of service.
FOP Employees
The Police Pension Fund is managed by the Police Pension Fund Board and governed by the Illinois Pension Code. Historically, the City has contributed more than required by law, which means that Urbana’s employee pension systems are all solidly funded. In addition, FOP employees who retire good standing will be paid for their remaining accumulated sick leave hours at a rate of 50% of the employee's hourly pay, including longevity as of the last day the employee worked.
IAFF Employees
The Firefighters' Pension Fund is managed by the Firemen's Pension Board and governed by the Illinois Pension Code. Historically, the City has contributed more than required by law, which means that Urbana’s employee pension systems are all solidly funded. IAFF employees who retire in good standing with 20 years of service will be paid for accumulated sick leave at a rate of 50% of the employee's hourly rate of pay at the time of separation.
This is not a contract; it is a partial listing of benefits and services. All covered services are subject to the conditions, limitations, exclusions, terms and provisions of your employee benefits package. In the event of a discrepancy between the information in this summary and the official source, the official source will prevail.