[Publib] Pension Vested Rights

[James Casey]

The Illinois Municipal Retirement Fund (IMRF) is the pension system for many (if not most) of the 600+ public libraries in Illinois.   This system has what I believe to be the unusual feature of requiring 8 years before participants can claim "vested rights" and become eligible for a pension.   In states where I worked before (New York and Ohio) the number of years required for basic vesting was 5.

I assume that 5 years for vested rights is standard for most pension systems and that 8 years or longer is unusual.   Am I wrong?

For younger folks, qualifying for pensions may not be a top priority.  However, I believe that a mid-career person in her/his 40s or 50s seeking a better paying directorship in Illinois after having served in other states might be dissuaded from coming to Illinois by the length of time required to qualify for a pension.    If the said candidate took a good job at high salary and completed 5 or 6 or 7 years of successful service in an Illinois public library, but found that it was "time to move on", they would be forced to confine their search for the next job to Illinois or come away without a pension for those years of service.  (Not all pension years of service can be used elsewhere or applied to other systems.)

Would the length of time required to obtain vested rights be a factor in considering whether or not to take a particular job?

A credible effort was made in 2008 to reduce the number of years required for vesting from 8 to 5.  It was unsuccessful, but may be attempted again, at some point.   I favor this change, but a good number of my colleagues (particularly those who already have vested rights in the system) have been opposed.

Thanks for your input.

Jim Casey,
  Director of Oak Lawn Public Library
  ALA Council Member


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