Illinois JRS Tier 2: Survivor Annuity, Refund and Retirement

Updated October 30, 2026. Quick answer: The Illinois Judges’ Retirement System documents read for Tier 2 (judges who joined on or after January 1, 2011) describe no payment-option election at retirement. The pension is paid for life, and the survivor choice is made earlier, through contributions: a spouse receives 66 2/3% of the earned retirement annuity, with a total contribution rate of 11%, or 8.5% for a judge who is single and returns the handbook’s election form. Retirement is at 67 with eight years, or at 62 with a reduction of 1/2 of 1% for each month under 67. A refund pays no interest and forfeits all rights.

More on public pension COLAs for 2027: the Illinois JRS COLA for 2027 and the Tier 1 and Tier 2 rules.

What this page covers and what it does not

This page covers Tier 2 of the Judges’ Retirement System of Illinois (JRS). Its handbook states its reach: “The information in this handbook applies to all active judges who first became members of JRS after December 31, 2010.” The cover of the handbook read is dated October 1, 2026. The second source is the system’s annual financial report for the fiscal year ended June 30, 2025. It defines the tiers: “Tier 2 pertains to participants who first became a participant of the System on or after January 1, 2011.” This page reads the Tier 2 handbook for the member’s choices and, for the member count, the contribution rate and the lawsuit, the annual report.

For the member count, the report says the system has “961 active participants, 10 vested inactive participants, and 1,368 benefit recipients” (the basis is the fiscal year ended June 30, 2025). The handbook warns that it is a summary: “If there is any conflict, discrepancy, or inconsistency between this handbook and the plan document, the plan document controls.” A decision with real money behind it should be checked against JRS in writing.

There is no payment-option election to make

Most public pensions ask the retiree to pick from a menu of payment options at retirement, each trading a smaller check for a larger survivor benefit. The two JRS documents read describe no such menu. What they describe is a single lifetime pension: “This benefit is paid for your lifetime.” The pages read do not offer a choice among single-life, joint-and-survivor and period-certain payments.

The survivor decision is made earlier, through contributions. The handbook says: “Contributions to the survivor’s annuity are only required for a spouse to qualify for the survivor annuity benefit, and are not required for an eligible child to qualify for the child’s annuity.” It also says: “If you elected not to participate in the survivor’s annuity provisions, no survivor’s benefit will be payable to an eligible spouse upon your death.” For how an election works in systems that have one, see single-life versus joint-and-survivor pension.

When a Tier 2 judge can retire, and what the pension is

The handbook lists two retirement routes. The early route: “At age 62 with eight years of credited service but with a reduction of 1/2 of 1% for each month under age 67”. The handbook adds: “If you take a reduced benefit, it remains in effect throughout your retirement.” That last sentence matters: the reduction is permanent. The second route is a full pension: “At age 67 with eight years of credited service.”

The amount is a formula. “Tier 2 benefits are based on the final average salary of the 96 highest consecutive months of service out of the last 10 years”. The annual report gives the accrual: “The retirement annuity provided is 3% for each year of service based upon the applicable final average salary.” The handbook adds a cap: “The maximum retirement benefit is 60% of your final average salary.” Selected rows of the handbook’s table of percent of salary by years of service are below.

A computed example from an assumed $100,000 final average salary, not a JRS figure: a judge with 12 years of service at age 67 receives 36% of that salary (the handbook table row, 3% a year), a computed $3,000 a month before any increases.

The handbook prints its own example: “60% x $132,867.67 = $79,720.56 annually or $6,643.38 per month.” Its early-retirement figure is checked in the section on where the sources disagree.

What is irrevocable, and the deadlines

Several JRS elections cannot be undone, and a few carry clocks.

• Joining. “Your written decision declining participation must be filed within 30 days from the date of being notified of the option.”
• Opting out of the survivor annuity. “Your form declining participation is irrevocable and must be filed within 30 days of notifying JRS of your marital status. No survivor annuity will be payable upon your death.”
• A reduced early pension. “If you take a reduced benefit, it remains in effect throughout your retirement.”
• Limiting contributions at the maximum. “Limiting your contributions is irrevocable.”
• Optional service purchases through payroll. “The tax-deferred withholding is an irrevocable payroll agreement for the total service credit purchase.”
• Starting the pension. “Contact JRS approximately 90 days before your retirement date.”

Confirm any of these with JRS before a form is signed.

A judge who marries after joining

A judge who joined single and opted out of the survivor annuity has one more decision if a marriage follows. The handbook says that “If you are single at the time you become a judge and do not wish to contribute to the survivor’s annuity, your contributions will be reduced to 8.5%” once the judge returns the handbook’s election form for unmarried judges. It then says: “If you later become married while an active judge, you must notify JRS.” JRS gives the judge two options. The first is to “Establish a full survivor benefit from the date you first became a judge by making contributions to cover the survivor annuity for the period you were unmarried plus 3% interest”. The second is to “Begin contributing from the date of your marriage forward to provide a pro-rated benefit for your surviving spouse”. The handbook does not give a dollar cost for either. On the full rate, the annual report says: “The total contribution rate is 11% if the participants elect to contribute for their spouse and dependents”.

What a surviving spouse and children receive

For a judge who took part in the survivor annuity, the handbook table gives the spouse’s share: “66 2/3% of earned retirement annuity plus any awarded annual increases”. Eligibility is conditional: “If you are survived by your spouse age 50 or over, and you were married for at least one year prior to your death, (s)he will receive a survivor’s benefit.”

A computed example from an assumed $3,000 monthly earned retirement annuity, not a JRS figure: two-thirds is a computed $2,000 a month for the spouse, before any increases. The handbook writes the fraction as 66 2/3%.

Timing of death changes whether survivors qualify. “If you die while serving as a judge and have at least 18 months of service credit, your survivors will be eligible for a monthly survivor’s annuity benefit.” “If you die after termination of service, but before receiving a retirement annuity, you must have at least 10 years of service credit for your survivors to qualify for the survivor’s benefit.” A judge who leaves before retiring needs 10 years of service for a spouse to qualify, according to that text.

When no survivor qualifies: “If you die with no qualified survivors while receiving retirement benefits, your named beneficiary or estate will receive your total JRS contributions, less any benefits paid.” “The survivor’s increase is not payable prior to age 67.”

Lump sum, DROP and partial lump sum: what the documents read describe

The documents read describe no lump sum retirement option, no partial lump sum and no deferred retirement option program. The only lump sums they describe are a refund of contributions to a judge who leaves, a refund of survivor contributions to a judge who is divorced or widowed, and the death-benefit lump sums above. The handbook states the exit choice this way: “If you leave judicial service, you may withdraw your JRS contributions or rollover your contributions to another qualified plan or IRA.” It adds the limit: “If you are immediately eligible for retirement, you are not eligible for a refund of contributions.”

Refund of contributions versus leaving them in the system

The refund is the one cash-out in the documents. “A JRS member who terminates service as a judge may apply for a refund of contributions without interest if they are not immediately eligible to receive a retirement annuity.” The handbook says what a refund costs: “You will receive no interest on your contributions.” “You will forfeit all rights to a JRS benefit for yourself and your beneficiaries.” “You may be subject to additional tax withholding and penalties.”

The handbook has no separate section on leaving contributions in the system. Its retirement routes need eight years of credited service, and a spouse’s survivor benefit for a judge who leaves needs 10 years, as above. The annual report counts 10 vested inactive participants. The general trade is laid out on pension refund versus leaving it.

Survivor contributions have their own rule: “If you are divorced or widowed, you are eligible to apply for a refund of your survivor contributions. You must apply in order to receive this refund.”

Divorce can change who is paid. “A QILDRO allows for the division of a retirement benefit, lump sum death benefit, or a refund of contributions due to divorce.” A judge with a divorce order on file should confirm how it applies before applying for a refund.

Getting service back, and buying more

A refund can be reversed only by paying it back, after the judge returns to judicial service. The handbook says that “you may reestablish your credited service by repaying your refund, plus 4% interest per annum compounded annually”. “Contributions must be repaid before retirement in order for your service to be credited.” The money can come in several forms: “Payments may be made in a lump sum, via a rollover from a qualified plan, or by installments on a pre-tax or post-tax basis.” A judge who joins another reciprocal system faces a further wait: “you must establish two years of credited service before you will be eligible to repay your JRS refund”.

A computed example from assumed figures, not a JRS figure: a refund of $40,000 repaid after exactly three full years at 4% a year, compounded annually, would come to a computed $44,994.56. The 4% is JRS’s stated rate; the amount and the three years are assumed. The handbook says the interest runs from the date of the refund to the date of repayment, so the real figure depends on the actual dates. A broader calculator is at the pension buyback calculator.

Other service can be bought as well. “JRS allows you to tax-defer optional service credit purchases (i.e. military service, refunded service, etc.) through payroll deduction.” “Service credit is granted only after a refund repayment or service purchase is paid in full.” “You may rollover money from another qualified pension plan or an individual retirement account (IRA) to purchase optional service credit.” The documents read do not give the price of a purchase.

Cost-of-living increases

“Annual increases to your pension begin the January 1 following your attainment of age 67 or the January 1 following the first full year of retirement, whichever is later.” “The annual increase is the lesser of: 3% or the annual unadjusted percentage increase in the Consumer Price Index-U.” “Annual increases are compounded on the previous year’s annuity.”

Working after retirement

Going back to work can pause the pension. “As a Tier 2 retiree, your JRS benefit will be suspended if you become employed on a full-time basis in JRS or any reciprocal system.” Confirm any planned public job with JRS first.

Where the sources disagree

The handbook and the annual report differ on a few points, and the handbook’s own example differs from its formula.

Limiting contributions. The handbook ties the election to age 67: “If you are age 67 and qualify for the maximum retirement annuity, you can elect to limit contributions.” The annual report’s note ties a similar election to age 60: “Participants who have attained age 60 and are eligible to receive the maximum rate of annuity and have not elected to discontinue contributing to the System may irrevocably elect to have their contributions based only on the salary increases received on or after the effective date of such election rather than on the total salary received.” A neighboring paragraph describes a separate election to discontinue contributions with benefits frozen. The report does not say which tier each paragraph covers, so a judge near the maximum annuity should ask JRS which election and which age apply.

The early-retirement example. The handbook prints a full pension of $6,643.38 a month at 67 and a reduced pension of $4,605.37 a month at 62 with the same 20 years. A computed check using the handbook’s rule: age 62 is 60 months under 67, and 60 months at 1/2 of 1% is a computed 30% reduction. Applying that to the printed $6,643.38 gives a computed $4,650.37 a month, not $4,605.37. The example may use a different salary average at 62, but the handbook does not say so. A judge pricing an early retirement should ask JRS for an official estimate rather than rely on the printed example.

Tier 1 reciprocal service. The handbook says that “You cannot be grandfathered into the Tier 1 formula based on service in a reciprocal system prior to January 1, 2011”. The annual report notes a lawsuit on the point: “The complaint alleges that Tier 2 judges who have Tier 1 reciprocal service should be Tier 1 judges and therefore be eligible for an earlier normal retirement age and larger retirement benefits.” The report adds that “On December 30, 2024, the Circuit Court of Cook County ruled in favor of the System and on March 5, 2026, the First District Appellate Court affirmed the decision of the System and the trial court”, and that the plaintiffs may seek further review.

How JRS describes the tax treatment

The handbook summarizes the tax picture. “You pay no Illinois state income tax.” On refunds: “You may postpone taxation of refunds by transferring (direct rollover) the taxable portion to another qualified plan or individual retirement account (IRA) that accepts it.” For a closer look at withholding, see the 20 percent withholding on a pension lump sum.

What the IRS adds on tax

A refund or lump sum from a public pension is a distribution, so the IRS rules apply on top of JRS’s own. On withholding, the IRS says that a taxable eligible rollover distribution paid to you “is subject to mandatory income tax withholding (generally at a rate of 20%), even if you intend to roll it over later”, and that “If you do roll it over and want to defer tax on the entire taxable portion, you’ll have to add funds from other sources equal to the amount withheld”. The JRS handbook says a direct rollover can postpone tax on a refund. A computed example from an assumed $40,000 taxable refund paid directly, not a JRS figure: 20% withholding is a computed $8,000 (the arithmetic is 40,000 times 20%), and a 60-day rollover of the full $40,000 would need that amount from other funds. The rollover clock, if the money is paid to you: “you have 60 days from the date you receive it to roll it over to another eligible retirement plan”.

On early distributions the IRS says “the law imposes a 10% additional tax on certain early distributions from certain retirement plans”. Its list of exceptions includes “Distributions made to you after you separated from service with your employer after attainment of age 55” and “Distributions made to a qualified public safety employee from a governmental plan (within in the meaning of section 414(d)) provided that the qualified public safety employee has separated from service during or after the year in which they attained age 50 or 25 years of service under the plan, whichever is earlier”. Whether an exception fits a particular refund depends on your own plan and facts, so confirm it with a tax preparer before you take one.

What this page could not settle

• The pages read do not describe a payment-option election at retirement, a lump sum retirement option, a partial lump sum or a deferred retirement option program.
• The pages read do not state whether the 66 2/3% spouse annuity is figured on a reduced early pension or on the unreduced amount.
• The pages read do not state the price of an optional service credit purchase.
• The pages read do not state a vesting period for a deferred pension separate from the eight-year retirement minimum, or what a judge who leaves with fewer than eight years can do other than take a refund.
• The pages read do not state whether spousal consent is required for a refund or for opting out of the survivor annuity.
• The handbook is a summary, and the plan document controls; this page does not read 40 ILCS 5/18 itself.

Common mistakes

• Looking for a payment option to pick at retirement; the documents read describe a single lifetime pension, with the survivor choice made earlier through contributions.
• Opting out of the survivor annuity as a married judge without realizing the form is irrevocable and no spousal survivor annuity will be payable.
• Taking a refund and assuming it earns interest or keeps any claim; the handbook says no interest is paid and all rights to a JRS benefit are forfeited.
• Retiring at 62 and expecting the reduction to fade; the handbook says a reduced benefit remains in effect throughout retirement.
• Planning on a cost-of-living increase right after an early retirement; increases begin no earlier than the January 1 after age 67 or after the first full year of retirement, whichever is later.

Related on this site: Illinois SERS retirement decisions, Illinois SURS retirement decisions, pension refund versus leaving it and public pension retirement decisions by system.

Sources

• Judges’ Retirement System of Illinois, Your Rights & Responsibilities Member Handbook, Tier 2, for judges who became members on or after January 1, 2011 (cover dated October 1, 2026): https://ilsrs.illinois.gov/content/dam/soi/en/web/srs/jrs/publications/documents/handbooks/judges-tier-2-handbook.pdf
• Judges’ Retirement System of Illinois, Annual Comprehensive Financial Report for the fiscal year ended June 30, 2025: https://ilsrs.illinois.gov/content/dam/soi/en/web/srs/jrs/resources/financial-report/jrs-2025annual.pdf
• IRS, Topic no. 413, Rollovers from retirement plans (irs.gov): https://www.irs.gov/taxtopics/tc413
• IRS, Topic no. 558, Additional tax on early distributions from retirement plans other than IRAs (irs.gov): https://www.irs.gov/taxtopics/tc558

Sources: the primary documents linked above, read on October 30, 2026. General information from each system’s own published materials, not legal, tax or financial advice. Your own member statement and the system’s current rules decide your benefit, and a pension counsellor at the system or a fee-only adviser is the right place to confirm anything consequential.