General Memo 566


Reporting taxable expense allowances as IMRF earnings

February 29, 2008

The Illinois Pension Code provides that the IMRF Board of Trustees defines what constitutes IMRF earnings and subsequently, what earnings are to be used in the calculation of IMRF benefits.

Expense allowances, even if they are taxable income to the member, are generally not considered IMRF earnings. However, an employer may elect—by governing body resolution—to report taxable expense allowances as IMRF earnings.

The governing body would complete IMRF Form 6.74, “Suggested Resolution to Include Taxable Expense Allowances as IMRF Earnings,” available from the forms area of By resolution, the employer may include as IMRF earnings the following types of allowances:

If the governing body does not adopt the appropriate resolution, expense allowances are not considered IMRF earnings and would not be reported to IMRF.

Please note: non-taxable expense reimbursements are not included as earnings and are not to be reported to IMRF. This is true even if an employer elects to make taxable expense allowances reportable.

If you have any questions, please call an IMRF Member Services Representative at 1-800-ASK-IMRF (1-800-275-4673) Monday through Friday, 7:30 a.m. to 5:30 p.m.

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