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• ' , . Exhibit 3 — Page 1 <br /> IMRF Eazly Retirement Incentive EMPLOYER <br /> Determining r�ember termination dates <br /> .\ <br /> • The ERI legislation provides flexibility for employers by allowing the employer to determine the <br /> timing of inember terminations.A member may terminate up to one year from the effective date of <br /> the employer's ERI program. � <br /> Example: <br /> Effective date of ERI program: September 30,2003 <br /> Termination date can be: September 30,2003,through September 30,2004 <br /> • If a member requests to retire before July lst so he or she will be eligible to receive the following <br /> year's Supplemental Benefit Payment("13th check"),the employer must allow the member to do so. <br /> • Employers are to give a member at least 30 days notice of his or her designated termination date. <br /> The 30-day notice may be waived by the member. ' <br /> Resolution to Adopt Amortization Period �i <br /> • Employers can customize the ERI to the financial circumstances of their own unit of local <br /> government.This flexibility is provided by allowing employers to determine the amount of time <br /> needed to pay off the incurred pension liability. (Please refer to page 11 for deta.iled information <br /> on employer costs.) <br /> • An amortization period of 10 years is assumed.Amortization of the incurred pension liabiiity can <br /> take no longer than 10 years and no less than five yeazs. <br /> • If an employer would like an amortization period of other than 10 years,it would submit a <br /> resolution doing so. (See IMRF Form 6.78,"Suggested form of Resolution to Adopt Amortization <br /> Period for IMRF Early Retirement Incentive,"on the following page.) Please note: due to the <br /> method IMRF uses to calculate employer contribution rates, only whole year(5, 6, 7, 8, 9, 10) <br /> amortization periods are allowed. <br /> • The amortization period resolution should be received in the IMRF office no later than six months <br /> from the effective date of the employer's ERI program.If no resolution is received,a 10-year <br /> amortization period will be assumed.If an employer would like an amortization period of less than <br />', 10 years,it would submit IMRF Form 6.78. <br /> 8 <br />