It’s never to early or late to prepare for retirement! But I wish I would have started this sooner!!

How IMRF Credits VAC Interest

VAC interest is credited differently from a traditional savings account:

  • A traditional savings account credits interest on the current amount in the account.
  • IMRF credits interest annually, at the end of the year based on the previous January 1 balance. That means:
    • You will not earn any interest the first year you begin making Voluntary Additional Contributions.
    • If you withdraw your contributions at any time during a year, you will not receive any interest on the contributions you withdraw. Contributions must stay in your account for you to receive interest on them. However, you would receive interest on any previously earned interest that remains in your account.
  • The current rate of interest is 7.25%. This rate may change in the future. If it does, IMRF may not directly notify you.