R2003-138 AUTHORIZING ADOPTIONS OF IMRF

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IMRF--- Early Retirement Incentive Program ( ERI) EXHIBIT 4 5 YEAR PAYBACK PERIOD Increased Savings Pension or(Increase) Year Description of Savings Savinas Costs IMRF costs 2004 Employees Payments for Service Years $266,914 Vacancy Savings till new employees hired $636,879 Savings due to new employees hired at lower rates $832,189 $1,735,982 0 (1) $1,735,982 2005 Savings due to new employees hired at lower rates $319,877 0 (1) $319,877 2006 Savings due to new employees hired at lower rates $328,723 519,103 (2) ($190,380) 2007 Savings due to new employees hired at lower rates $337,835 519,103 ($181,268) 2008 Savings due to new employees hired at lower rates $347,220 519,103 ($171,883) 2009 Savings due to new employees hired at lower rates $356,886 519,103 ($162,217) 2010 Savings due to new employees hired at lower rates $366,843 519,103 ($152,260) $3,793,366 $2,595,515 $1,197,851 (1) Per IMRF guidelines the increased retirement costs due to ERI are reflected in future IMRF employer contribution rates and will be reflected in the second calendar's rate. For example, if the City adopts ERI in 2004, the first costs will begin to be reflected in the 2006 employer rate. (2) IMRF assumes only the first year-the actual could be more or less in later years depending upon interest earned or charged, prepayments by the City, and any legislative changes. Currently the IMRF Fund has beginning fund balance savings of $1,090,000 which also could be used to to pay the ERI pension liability.