4.24 D. Elected Official Stipend

The state agency calculates income taxes on the net amount after the IMRF contribution is deducted rather than on the gross stipend amount. This tax treatment allows for immediate Illinois and federal income tax savings to the member An employee who works in a position not excluded from IMRF coverage and whose position meets the annual hourly standard for IMRF coverage. For the purposes of an Authorized Agent submitting a petition or casting a ballot in an executive trustee election, an active member also includes an employee receiving an IMRF pension and working in position that does not qualify for IMRF participation or one that provides the employee the option of participating in IMRF, e.g., elected office. and avoids the possibility of double taxation of the IMRF contribution.

Therefore, all elected official stipends will be treated as tax-deferred. You no longer need to identify them as ”previously taxed” stipends when reporting them to IMRF. Report the gross stipend amount and calculate IMRF contributions on this gross amount. Report these amounts as a part of your employer’s total IMRF member wages and contributions.

Please note: Social Security and IMRF contributions will continue to be calculated on the gross amount.

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