The IMRF (Illinois Municipal Retirement Fund) Calculator helps determine the retirement benefits for members of the Illinois Municipal Retirement Fund. This calculator is useful for public employees in Illinois to estimate their pension benefits upon retirement.
Inputs:
- Years of Service (Y): The total number of years of service credited.
- Final Average Salary (FAS): The average of the highest consecutive 48 months (4 years) of salary within the last 10 years of service.
- Multiplier (M): A fixed percentage multiplier, typically 1.67% for IMRF Regular Tier 1 members.
Formulas and Calculations:
Annual Pension Calculation:
The formula to calculate the annual pension is:
[ \text{Annual Pension} = \text{Y} \times \text{FAS} \times \text{M} ]
Monthly Pension Calculation:
To convert the annual pension to a monthly pension:
[ \text{Monthly Pension} = \frac{\text{Annual Pension}}{12} ]
Example Calculation:
Inputs:
- Years of Service (( \text{Y} )): 25 years
- Final Average Salary (( \text{FAS} )): $60,000
- Multiplier (( \text{M} )): 1.67%
Step-by-Step Calculation:
- Calculate Annual Pension:
- Using the formula:
[\text{Annual Pension} = 25 \times 60,000 \times 0.0167 = 25,050 \, \text{dollars}]
- Calculate Monthly Pension:
- Using the formula:
[\text{Monthly Pension} = \frac{25,050}{12} \approx 2,087.50 \, \text{dollars}
Summary:
For an IMRF member with 25 years of service and a final average salary of $60,000, the estimated annual pension is $25,050, which translates to a monthly pension of approximately $2,087.50.
Conclusion
The IMRF Calculator is a valuable tool for public employees in Illinois, providing a quick and accurate way to estimate retirement benefits. By inputting years of service, final average salary, and the multiplier, users can easily calculate their annual and monthly pension. This helps in retirement planning and financial decision-making.