All retired members and surviving spouses who have been eligible to receive 12 months of benefit payments are eligible for a supplemental benefit payment, known as the 13th payment.
(The 13th payment is not payable to individuals receiving a Beneficiary Annuity. See 5.30 B. 1b. Types and Amounts of IMRF Death Benefits. The 13th payment is payable to individuals receiving a reversionary annuity. See paragraph 15b..)
The 13th payment is payable in July of each year unless an annual 3% compounded post-retirement increase is enacted by the legislature. The formula for the additional benefit payment is as follows:
|
Retiree's June payment |
x .62% x |
Annual payroll |
= Amount of 13th payment |
|
All eligible June payments |
For tax withholding purposes, IMRF treats the 13th payment as a regular monthly payment. The entire amount is subject to federal income taxes.