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EXHIBIT 4-A
<br /> IMRF --- Early Retirement Incentive Program ( ERI)
<br /> 10 YEAR PAYBACK PERIOD Increased Savings
<br /> Pension or(Increase)
<br /> Year Description of Savings Savinas Costs IMRF costs
<br /> 2004 Employees Payments for Service Years $266,914
<br /> Vacancy Savings till new employees hired $636,879
<br /> Savings due to new employees hired at lower rates $832,189
<br /> $1,735,982 0 (1) $1,735,982
<br /> 2005 Savings due to new employees hired at lower rates $319,877 0 (1) $319,877
<br /> 2006 Savings due to new employees hired at lower rates $328,723 279,433 (2) $49,290
<br /> 2007 Savings due to new employees hired at lower rates $337,835 279,433 $58,402
<br /> 2008 Savings due to new employees hired at lower rates $347,220 279,433 $67,787
<br /> 2009 Savings due to new employees hired at lower rates $356,886 279,433 $77,453
<br /> 2010 Savings due to new employees hired at lower rates $366,843 279,433 $87,410
<br /> 2011 Savings due to new employees hired at lower rates $377,098 279,433 $97,665
<br /> 2012 Savings due to new employees hired at lower rates $437,661 279,433 $158,228
<br /> 2013 Savings due to new employees hired at lower rates $398,541 279,433 $119,108
<br /> 2014 Savings due to new employees hired at lower rates $409,747 279,433 $130,314
<br /> 2015 Savings due to new employees hired at lower rates $421,290 279,433 $141,857
<br /> $5,837,703 $2,794,330 $3,043,373
<br /> (1) Per IMRF guidelines the increased retirement costs due to ERI are reflected in future IMRF employer
<br /> contribution rates and will be reflected in the second calendar's rate. For example, if the City adopts ERI
<br /> in 2004, the first costs will begin to be reflected in the 2006 employer rate.
<br /> (2) IMRF assumes only the first year-the actual could be more or less in later years depending upon
<br /> interest earned or charged, prepayments by the City, and any legislative changes.
<br /> Currently the IMRF Fund has beginning fund balance savings of $1,090,000 which also could be used to
<br /> to pay the ERI pension liability.
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