A RETIREMENT FUND DEDICATED TO THOSE WHO ARE THERE FOR OTHERS
As of January 2012, retired participants that are Illinois residents do not pay State income tax in the state of Illinois on Retirement Income.
Participants should consult their income tax professional to determine the taxability of benefits among different states.
Retirement benefits are subject to federal income tax. However, participant contributions made prior to January 1, 1982 (Investment in the contract) were taxed as income at the time you received that payroll and are non-taxable as distributed by the Fund as retirement income. Each year a portion of retirement income will be considered non-taxable (excluded) until those contributions are exhausted. Participants receive a 1099R in January stating the amount of their taxable benefit.