13th Payment

for Retirees in the Tier 1 Revised ECO Plan

After you have retired and have received pension payments for at least 12 months in a row, you will receive a "13th Payment" with your July payment.

Becoming Eligible for the 13th Payment

You must receive IMRF pension payments for the previous 12 months in a row to receive a 13th Payment. When you first retire, you must have retired on or before June 30 to receive a 13th payment the next year. For example:

If you retire… You will receive your first 13th Payment in…
On or before June 30, 2022 July of 2023
After June 30, 2022 July of 2024

Once you receive your first 13th Payment, you will receive one every year unless your pension payments are suspended for some reason, such as if you return to work for an IMRF employer.

If you are receiving a surviving spouse pension, you will be eligible for the 13th payment if your deceased spouse's pension would have been eligible for the 13th payment in that year.

Amount of Payment

The 13th payment is not the same amount as your usual monthly pension payment. It is a percentage of your June payment amount. In 2023, the 13th Payment will be about 24.107% of your June 2023 payment. 

Each June IMRF calculates the percentage of the 13th payment for that year. The percentage is based on the total of:

  1. Employer contributions (.62% of member payroll) and
  2. All June payments to everyone eligible for the 13th payment.

IMRF divides the first number by the second number to arrive at the 13th payment percentage. 

To calculate the amount of your 13th Payment, multiply your gross June benefit amount by 0.24107. That will yield the gross amount of your 13th Payment.

Amount is Getting Smaller

The 13th payment amount is getting smaller every year. The pool of money available for the 13th Payment is a percentage of the total amount of IMRF employers' payroll. Employer payroll amounts are based on the number of employees working. Since the number of retirees eligible for the 13th payment is growing faster than the number of members currently working, a larger amount of people must share a smaller pool of money.

Income Taxes on 13th Payments

Your 13th payment is subject to federal income tax but not to Illinois income tax. (Illinois does not tax any retirement income, including IMRF pension payments.)

We calculate the amount of federal withholding by looking at your June pension payment. For example, if the federal withholding on your June payment is $100.00 and the percent we used to calculate the 13th payment is 24.107%, the withholding on the 13th payment would be $24.12 ($100.00 multiplied by .24107).

Paid for by Employers

The 13th payment is paid for entirely by employer contributions. Each IMRF employer contributes .62% of its IMRF member payroll to pay for the 13th payment.