In July 2003, IMRF implemented a mandatory Direct Deposit program.

Why does IMRF mandate Direct Deposit?
Ninety-seven percent of IMRF retirees retiring after July of 2003 already use Direct Deposit. It is the safest, most secure method for you to receive your pension payment. With Direct Deposit, your pension payment is:

• Secure—it cannot become lost, stolen, or delayed in the mail
• Reliable—it is deposited into your account on time, every month
• Convenient—you do not need to make special arrangements if you are away from home

What is Direct Deposit?
Direct Deposit is simply two banks communicating directly to each other over a secure electronic connection. Banks perform this type of secure electronic communication every day. As soon as IMRF processes your monthly benefit payment, our bank electronically “speaks” to your bank, telling your bank how much money we are depositing into your account. And that’s it—-your money is in your account by the first of every month.

Myths about Direct Deposit
IMRF has heard many reasons why some retirees don't want to use Direct Deposit. Often these reasons are based upon a misunderstanding of how Direct Deposit works. Click on the link below to read the fact sheet, “Debunking Direct Deposit Myths,” that addresses some of these common misunderstandings.

Debunking Direct Deposit Myths

What do you need to do?
If you haven't already, please complete and return IMRF Form 1199, “Application for Direct Deposit.” If you do not enroll in Direct Deposit, your pension could be suspended. Form 1199 was included with IMRF Form 5.20, "Application for IMRF Pension." You can also click on the link below to download a form.

After three paper check payments, future payments may be suspended until you enroll in Direct Deposit.

IMRF Form 1199, "Application for Direct Deposit"

Are there any exemptions?
IMRF will consider special circumstances in unique cases where an inability to use Direct Deposit is proven; however, being strongly opposed to Direct Deposit is not considered a valid reason for exemption.

Exemptions from Direct Deposit are reviewed on a case-by-case basis. If you think you qualify for an exemption, you must call a Member Services Representative at 1-800-ASK-IMRF (1-800-275-4673) to begin the review process.

Examples of a qualified exemption include:

• You live outside of the United States
• Your payment goes to a representative payee
• Your bank does not accept electronic transfers

Direct Deposit statement
You will receive a statement for your first Direct Deposit transaction. After this initial statement, you will receive a Direct Deposit statement:

• In January to show your annual increase

• In July for the 13th payment (if you are eligible)

• In December to show your total yearly payments and any deduction withheld (you will still receive a separate 1099 form)

• Whenever your payment amount changes (for example, if you’ve made changes in your tax withholding)

This statement will provide you with a breakdown of the current month’s payment as well as year-to-date figures.

Processing time
When we receive your completed Direct Deposit information, we will send a notice to your financial institution to verify routing and account numbers. If the verification is completed before we process your next payment, that payment will be directly deposited. If the verification isn't completed before we process your next payment, you will receive a check, and the following month’s payment will be directly deposited.

Changes

Banking information/name change
A new Form 1199 is required if you change financial institutions or account numbers or if you change your name. IMRF must have all changes to your member account in writing with your signature. We cannot accept any changes over the phone or via email.

Please note that benefit payments are prepared in the middle of the previous month. Changes to name, address, or banking information should generally be submitted to IMRF before the 10th of the month to be processed in time for the next benefit payment.

Address change
Please remember to advise IMRF in writing of any change in your home address. Although your payments will be deposited directly, IMRF will continue to mail income tax statements and other correspondence to your home.

If you do not inform IMRF of address changes,
your Direct Deposit payments will cease!

If any piece of mail is returned to IMRF because you have not changed your address with us, we will stop your Direct Deposit. This often occurs when a post office forwarding order expires. Since all IMRF mail has been forwarded, members sometimes do not realize that they have not officially changed their address with IMRF.