Retirement Benefits

Non-Union Employees

Retirement Plan

All benefits-eligible non-union employees participate in the City's defined benefit retirement plan through the Illinois Municipal Retirement Fund (IMRF). A defined benefit plan offers the security of a guaranteed return on contributions, and you will receive benefits for as long as you live. Both the City and employees contribute to pensions.

Both your pension amount and the age that you can retire at are determined in part by how much service credit you have. Your service credit is based on how long you have worked in a qualified position.

​IMRF has two tiers of pension plans, and these are based on your hire date:

1.Tier 1 employees were hired before  January 1, 2011.

2.Tier 2 employees are those hired on or after January 1, 2011.

Your monthly pension is calculated using formula which multiplies your service credit by your Final Rate of Earnings (FRE). The FRE rate is highest average earnings over a certain period of time. Most likely, your highest earnings will come at the end of your career. If so, the FRE used to calculate your pension will be your highest total earnings for a certain period of time within your last 10 years of IMRF service. If your highest earnings occur at the beginning of your career, IMRF will use a different formula. When you retire, IMRF will calculate your FRE using both methods and will use the formula that provides you with the larger pension. Whichever method is used, your total pension at retirement cannot exceed 75% of your final rate of earnings.

You can also make additional voluntary contributions to increase your retirement savings. For more information, see IMRF Tier 1 Voluntary Contributions or IMRF Tier 2 Voluntary Contributions.


Voluntary Supplemental Retirement Plan (457 Plan)

Employees may also contribute to a 457 Deferred Compensation Plan through ICMA-RC. This supplemental retirement plan is funded through employee contributions only and no service credit is required. Participants in this plan can take distributions from the plan upon separation from City service without an IRS penalty regardless of the employee’s age. Employee contributions to this plan are pre-taxed and tax deferred. You can update your beneficiary information or view your account details online at: IMRC Login.

Enrollment and change forms can be found on the Open Enrollment Forms page under Retirement Contributions.


Retirement Health Savings Account

Eligible mployees who have accrued a sick leave balance of at least 300 hours on June 30th of each year are automatically enrolled in Vantage Care, the City's post-retirement medical savings benefits program through ICMA. There is no vesting period and no plan-defined limit on the amounts that may be contributed.

Here's how it works:

  • On July 1st of each year, the City will contribute 1 percent of your annual salary (pro-rated for part-time employees) into two accounts: your universal account, which can be used for any eligible medical care costs, and your insurance account, which can be used for health insurance costs.

  • In addition, the City will make a payment of 20% of your accrued sick leave balance into your accounts when you leave employment; this is in addition to any cash payment you may also receive, based on your years of service.

  • All your contributions and interest earned in your accounts are tax-free to you as long as you pay for or get reimbursed for qualified medical care costs (health insurance, deductibles, co-pays, medicines, etc.)  So you receive approximately $1.40 in benefits for every $1 deposited into your account.

  •  In return, your sick leave acccrual rate decreases based on a graduated scale. 

  • As part of this program, eligible employees will also be able to access their sick leave balance payout faster and at a higher rate than non-participating employees.

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- Last Modified -April 25, 2019 - 1:02pm
- Author - ElizabethD