R2003-138 AUTHORIZING ADOPTIONS OF IMRF

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� ; - � Exhibit 1 — Page 2 Retirement Incentives Eligible members may purchase up to five years of IMRF service credit.The member's age at retirement will be increased by the amount of service credit purchased.For example,if a 50-year-old member purchases five years(or 60 months)of service credit,his or her age will be increased to age 55 for the purposes of determining IMRF retirement benefits Note:A regular IMRF member receives the maximum pension after earning 40 years of service credit. Therefore,regulaz members with less than 35 years of service credit should purchase all five years of ERI service. Member Cost For each year of service credit the member purchases,he or she will pay 4.5 percent(6.5 percent for SLEP, 7.5% for ECO)of the member's highest 12 consecutive months of salazy within the final rate of earnings period. For more information on member cost,please refer to the member ERI booklet that can be downloaded at www.imrf.org. Retirement Dates The ERI legislation provides flexibility for employers by allowing the governing body to determine when a member retires (terminates employment).Employers aze to give a member at least 30 days notice of his or her designated termination date.The member may waive the 30-day notice. A member may terminate up to one year from the effective date of the employer's ERI program.However, a member must file his or her Notice of Intent to Retire Under ERI(IMRF Form 5.21)with the retirement application (IMRF Form 5.20). Example: Board meeting adopting program ....December 15,2003 Member files Notice of Intent by retirement date* Effective date of ERI program..........December 31,2003 Last eligible termination date: December 31, 2004# � * Best practice: Encourage the member to file a"Letter of Intent"(IMRF Form 5.21)as soon as your employer adopts the ERI and the member decides to retire under it. �$ If a member requests to retire on or before June 30,so he or she can receive the following year's Supplemental Benefit Payment("13th check"),your employer is required by law to allow the member to do so. Cost estimate Your IMRF field representative must prepare a cost estimate and you must share that cost estimate with your employer's governing body before it adopts ERI. Also,the cost estimate must be based on the same time period as the ERI being considered by your governing body. If your employer does not know when it will offer the ERI,your IMRF Field Representative can prepare multiple cost estimates each using a different time period. The ERI resolution has been revised to acknowledge the cost estimate requirement.The cost estimate must be submitted with the resolution. For more information on cost estimates,please refer to the employer ERI booklet that can be downloaded at www.imrf.org. Future ERI programs An employer cannot adopt later ERI programs until the cost of the previous ERI is paid in full. Rev. 6/03 Page 2