Illinois QDRO

An Illinois public-pension divorce uses the Qualified Illinois Domestic Relations Order (QILDRO) rather than the federal QDRO. Same statutory function, different statutory authority. Each Illinois system publishes its own form, accepts its own language, and rejects orders drafted against another system's template. The first job in any Illinois retirement case is identifying which of roughly a dozen systems the participant is actually in.

Illinois equitable distribution in one paragraph

Illinois is an equitable-distribution state under 750 ILCS 5/503. Marital property is divided in just proportions considering statutory factors: contribution of each party, dissipation of marital property, duration of marriage, age and health, occupation and earning capacity, and other relevant factors. Retirement benefits accrued during the marriage are marital property. The marital share is most commonly allocated using a coverture-fraction approach for defined-benefit pensions, with the order specifying the formula explicitly.

In re Marriage of Hunt (Ill. App. 1979) is the Illinois decision most often cited on dividing a defined-benefit pension in divorce. It applied a coverture-fraction approach to the marital portion, later reflected in the Illinois Pension Code.

The QILDRO and the Illinois Pension Code

The QILDRO is followed by a separate QILDRO Calculation Court Order in many systems. The QILDRO sets up the alternate payee's right to a share; the Calculation Court Order, executed at the time benefits become payable, calculates the specific dollar amount. The two-step process is unusual compared to a federal QDRO and trips up drafters new to Illinois public pensions.

The five Illinois state retirement systems

Each has its own QILDRO procedure and accepted-language pattern. A QILDRO drafted for SERS will not be accepted by TRS Illinois or SURS without revision to match the specific system's template.

SURS three-tier election

SURS members can elect among three plan types at the start of their employment:

• Traditional Defined Benefit Plan. The standard SURS pension. Divided by QILDRO under SURS's DB procedure.
• Self-Managed Plan (SMP). A defined-contribution plan, similar to a 401(k), with TIAA and Fidelity as the recordkeepers. Divided like a private DC plan by an order processed by the carrier.
• Portable Plan. A variant of the Defined Benefit Plan with different vesting and portability mechanics. Still divided by QILDRO under SURS procedure.

A SURS member's plan election is determinative for the drafting. The most recent annual statement identifies the plan type. For SMP members at TIAA, see the TIAA 403(b) guide for multi-plan structure considerations.

IMRF (Illinois Municipal Retirement Fund)

IMRF is the pension system for Illinois local government employees outside Chicago. Coverage includes counties, school district non-certified staff (custodians, bus drivers, secretarial staff), park districts, library districts, township employees, special districts, and most other Illinois municipal employers. IMRF is one of the largest local-government pension systems in the United States by membership and assets.

IMRF division

• Divided by QILDRO under IMRF's published model order.
• Pre-submission review is available and routine.
• The marital share is coverture-fraction allocated.
• IMRF Tier 1 (pre-2011 hires) and Tier 2 (2011 and later) members have different benefit formulas; the QILDRO must reflect the applicable tier.

Social Security interaction

Unlike most other Illinois public-pension systems, many IMRF members do pay Social Security on their IMRF-covered service depending on the participating employer's election. This affects WEP and GPO analysis less than for non-Social-Security systems.

Chicago retirement systems

Chicago operates a separate universe of municipal pension funds, each governed by Article 5, 6, 8, 11, 12, or 13 of the Illinois Pension Code:

Chicago Teachers' Pension Fund (CTPF)

Covers Chicago Public Schools teachers, principals, and certified staff. Distinct from TRS Illinois, which covers the rest of the state's public school teachers. CTPF has its own QILDRO procedure.

Policemen's Annuity and Benefit Fund of Chicago

Covers sworn Chicago Police officers. Article 5 of the Illinois Pension Code.

Firemen's Annuity and Benefit Fund of Chicago

Covers sworn Chicago Fire Department personnel. Article 6.

Municipal Employees' Annuity and Benefit Fund of Chicago (MEABF)

Covers most non-uniformed City of Chicago employees and certain Chicago Board of Education employees. Article 8.

Laborers' and Retirement Board Employees' Annuity and Benefit Fund of Chicago

Covers City of Chicago laborers and Retirement Board employees. Article 11.

Park Employees' and Retirement Board Employees' Annuity and Benefit Fund

Covers Chicago Park District employees. Article 12.

Each Chicago system has its own QILDRO procedure, accepted-language requirements, and pre-submission process. The Chicago systems are routinely the most rejected when drafting is built off a non-Chicago template.

Cook County, Metropolitan, and other systems

• County Employees' and Officers' Annuity and Benefit Fund of Cook County covers most Cook County employees.
• Forest Preserve District Employees' Annuity and Benefit Fund of Cook County covers Forest Preserve District employees.
• Metropolitan Water Reclamation District Retirement Fund covers MWRD employees.
• Chicago Transit Authority Retirement Plan covers CTA employees (governed by a separate statutory framework, not the Illinois Pension Code).
• Regional Transportation Authority and other agencies may operate distinct plans.

Private-sector plans in an Illinois divorce

Illinois equitable-distribution law applies to private 401(k), 403(b), IRA, and pension accounts the same way it applies to state-system pensions. The marital share is the portion attributable to contributions, employer matches, and earnings during the marriage. The order types are the same as in any other state:

• Private 401(k), 403(b), profit-sharing: QDRO at $700 flat.
• IRA: Transfer Incident under IRC Section 408(d)(6) at $700 flat.
• Private DB pension: QDRO at $700 flat.
• Cash balance plan (large law firms, medical groups, professional partnerships): see the cash balance guide.
• TIAA plans at SURS Self-Managed and at private Illinois academic institutions: see the TIAA 403(b) guide.

Federal employees in Illinois

FERS, CSRS, TSP, and military retired pay all follow federal mechanics regardless of state of residence. Illinois equitable-distribution law sets the marital allocation. The order type and the administering agency are federal: COAP through OPM, RBCO through FRTIB, USFSPA-compliant order through DFAS. See the FERS and CSRS guide, the TSP guide, and the military guide.

What TOVA needs to start an Illinois case

• The plan name (which of the state systems, IMRF, a Chicago fund, Cook County, MWRD, CTA, SURS plan type if SURS, or a private plan).
• Date of marriage and date of separation or divorce.
• Date of hire or first day of service for DB pensions.
• Tier 1 vs Tier 2 identification for IMRF.
• For SURS, the elected plan type (DB, SMP, Portable).
• Most recent benefit statement.
• Settlement agreement or proposed terms, specifying the marital-share allocation.

What TOVA does not do

• We do not make strategic litigation decisions. We document what the records show and what the plan can administer.
• We do not advise on Illinois equitable-distribution discretion.

For related context, see the order type guide, the QDRO rejection diagnosis guide, the forensic tracing guide, the pricing page, and the topics index.