In the midst of the down market and economic uncertainty, you may have questions about how your IMRF pension and Voluntary Additional Contributions (VAC) will be impacted:

When you retire, IMRF has on hand all of the money needed to make your monthly pension payments for the rest of your life. Unlike 401(k) account totals, which can be significantly impacted by market changes, your monthly pension payment amount is not impacted by market changes.

However, increasing cost-of-living due to inflation could make it more challenging to live on your monthly pension payment alone. In addition to your IMRF pension and your Social Security, it may be necessary to have other sources of retirement income, such as retirement savings accounts, investments, rental income, or a part-time job.

IMRF Voluntary Additional Contributions (VAC) earn interest that is credited to your account at the end of the year, based on the balance of the account at the beginning of the year. Currently, VAC accounts earn 7.25% interest per year. Even in down markets, your VAC account will continue to earn a steady interest rate.

Although the annual interest rate is subject to change, VAC totals are not impacted by market changes in the way that 403(b) or 40l(k) accounts are, making VAC a low-risk retirement savings option, which is particularly attractive in a volatile market.

Higher cost-of-living due to inflation may make it more challenging for you to continue contributing to your VAC at the same rate, and you may be tempted to temporarily stop contributing or decrease contributions. However, doing this would adversely impact your VAC growth and eventual payout. The interest across all your years of contributions can significantly help build your retirement savings. So, the longer you wait to start contributing or delay increasing your VAC contributions, the less you benefit from the compounding interest.

For more information on how IMRF's VAC program works, click here.

Some years back, IMRF surveyed our members and retirees to find out what you wanted and valued most from IMRF. The results showed that accuracy, precision, honesty, and reliability were at the top of your list.

IMRF values what our members and retirees value. Therefore, accuracy, precision, honesty, and reliability are priorities of our organization and are top-of-mind in everything we do.

IMRF's diligence in these areas has earned us top honors in financial reporting for the third year in a row. IMRF recently received the Government Finance Officers Association (GFOA) Triple Crown Award for its 2020 Annual Comprehensive Financial Report, Popular Annual Financial Report, and Budget. (The 2021 documents are currently under consideration for awards, and the 2022 documents will be submitted when completed.)

IMRF's Pre-Retirement Workshop webinar is for IMRF members who are within five years of retirement. It will address the steps you must take before and during the IMRF retirement application process.

The Pre-Retirement Workshop webinar is now offered online, on-demand on the IMRF website. You can view this recently recorded webinar at any time, when it is convenient for you. To watch the

Pre-Retirement Workshop webinar, click here.