PA 100-411: Vehicle Allowances as IMRF Earnings; Have A Resolution On File For Section 125 Plans; Lou's Road to Retirement

September 15, 2017


In This Issue: PA 100-411: Vehicle allowances as IMRF earnings Have a resolution on file for Section 125 plans Lou's Road to Retirement: Next Stop - PBR	Quick Links: Visit IMRF's website Log in to Employer Access Employer Digest email archive

PA 100-411: Vehicle allowances as IMRF earnings

On August 25, 2017, the Governor signed Senate Bill 701 into law, effective immediately. Now Public Act 100-411, this bill excludes vehicle allowances from the definition of reportable wages for members who first begin IMRF participation on or after the effective date. **Vacation payouts are included as an exemption from the accelerated payment calculation, but only if the payment was made in the final three months of the FRE period.

To better inform and assist employers in complying with this new legislation, IMRF has:

Updated the Accelerated Payments page on www.imrf.org.
Created the "Vehicle Allowances as IMRF Earnings" Quick Reference Card.
Updated Form 6.74, "Suggested Resolution to Include Taxable Allowances as IMRF Earnings."
Updated Form 7.20, "Request for an Accelerated Payment Exemption."

**Editor's Note: This text has been modified since this issue's original distribution.

Have a resolution on file for Section 125 plans

Cafeteria plans may be established under Section 125 of the Internal Revenue Code. If the cafeteria plan has a cash option, those cash payments are IMRF earnings and must be reported to IMRF.

However, other compensation paid under a cafeteria plan is not reportable to IMRF unless the employer's governing body adopts a resolution using IMRF Form 6.72, "Suggested resolution to include compensation paid under an Internal Revenue Code Section 125 Plan as IMRF earnings." The form must be completed, certified, and returned to IMRF. Without the appropriate resolution on file, the compensation is not reportable to IMRF.

To read more about reporting other compensation paid under a cafeteria plan, see Section 6.60 F, "To Include Compensation Paid Under an Internal Revenue Code Section 125 Plan as IMRF Earnings," in the Manual for Authorized Agents.

Lou's Road to Retirement:

Next Stop - PBR

Earlier this year, IMRF announced that Executive Director Louis W. Kosiba plans to retire at the end of 2017. Kosiba has charted his "Road to Retirement" by appearing in a series of videos providing an inside look at IMRF's services and the steps to follow toward retirement.

Kosiba's retirement journey continues in the newest video release. In this installment, Kosiba meets with IMRF Field Representative Tecya Anderson to complete a Personal Benefits Review.

Click here to watch the next episode of Lou's Road to Retirement:

Review the complete "Lou's Road to Retirement" video series on the dedicated page of IMRF's website, www.imrf.org.

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