4.24 C. Non-Cash Earnings

See 3.96 F. Non-Cash Earnings (Wages-In-Kind).

If non-cash compensation is reportable to IMRF (see 3.96F) it may be reported in one of two ways:

1. The value can be included on each month’s report and IMRF member contributions Members who participate in the Regular Plan contribute 4.50% of salary toward a future IMRF pension: 3.75% for the member and 0.75% for a surviving spouse pension. Members who participate in the SLEP plan contribute 7.50% of salary (on and after June 1, 2006) toward a future SLEP pension: 6.75% for the member and 0.75% for a surviving spouse pension. Before June 1, 2006, SLEP members contributed 6.50 percent of salary; 5.75 percent for the member and 0.75 percent for a surviving spouse pension. Members in the ECO plan contribute 7.50 of salary toward a future ECO pension: 6.75% for the member and 0.75% for a surviving spouse pension. submitted with the report. If an employer incorporates the value of the non-cash items into the payroll system, the member contributions will be automatically withheld each pay period.

2. The value can be reported on a periodic basis such as quarterly, semi-annually, or annually and the IMRF member contributions submitted with the report, including the wages. This method would fit if the employer does not withhold contributions each pay period, but only periodically.

These rules are essentially the same as those applicable to withholding of Social Security Social Security coverage for IMRF members is required, except for a limited number of firefighters and police officers, by an agreement between the State of Illinois and the Commissioner of Social Security under Section 218 of the Social Security Act. IMRF members pay Social Security taxes on wages up to the wage base, and IMRF employers pay an equal amount. IMRF employers remit these taxes to the Internal Revenue Service. Applications for benefits and questions about Social Security should be directed to the local Social Security district office or representative or call 1-800-772-1213. (FICA) taxes. It should be noted that FICA withholding rules permit an employer to elect to treat the value of fringe benefits for November and December as Social Security wages and taxable income for the following year. If this method is used, then the IMRF wages should be reported in the same time frame.

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