Retirement Annuity Payments

Your benefits are based on the laws in effect on your last day of employment. In order to receive any benefit, you must apply for it. All benefit claims should be made to the Claims Division. After you begin receiving benefits, you should notify SERS if you change your name or address. All SERS records are maintained by your Social Security number or Illinois Public ID number. Make sure these numbers are correct when filing a claim.

SERS will process your first annuity payment after we receive your pension application and other required information. The normal processing time is approximately 12 weeks from the date you leave service.

The first annuity payment will either be mailed directly to your home or electronically deposited into your account by the Comptroller’s office. You will also receive a Notice of Pension Approval, which contains information about your retirement annuity and a tax brochure, which provides an overview of your annuity taxes.

Future annuity payments are mailed on the 19th of each month, unless the 19th is on a weekend or holiday, when they are mailed on the last working day before the 19th. If your payment is mailed directly to your home, allow 14 business days for delivery.

If you have not received your payment after 14 business days, call SERS. Failure to advise SERS of an address change may result in a delayed payment. A permanent mailing address is maintained for each annuitant of SERS. This is necessary for the mailing of special notices, newsletters and Group Insurance Program information. It is important to maintain your permanent mailing address and report any changes. Annuitants can submit a change of address in writing to the SERS Springfield or Chicago offices.

When you apply for a SERS benefit, you will receive a Depository Agreement form along with an explanation of this program. We encourage you to have your monthly benefit directly deposited into your bank account. Complete and return this form with your application for benefits.

When you choose direct deposit, your first payment is mailed to your home. All future payments will be deposited into your bank account on the 19th of each month.

You can securely view your monthly earnings statement through the SRS Member Services website. To view your account information, you may register through our website at the Member Services website.

Illinois law exempts all SERS benefits from state income tax, but your benefits are subject to federal income tax. When you apply for retirement benefits, SERS sends you an IRS Form W-4P (Withholding Certificate for Pension or Annuity Payments).

If the W-4P Form is not returned to SERS, taxes are withheld using the rate for a married person with three exemptions. Each year, the Comptroller’s office is required to send you a 1099-R form showing the total annuity amount you received during the past year, as well as any taxes withheld.

Illinois law exempts all SERS benefits from state income tax, but your benefits are subject to federal income tax. When you apply for retirement benefits, SERS sends you an IRS Form W-4P (Withholding Certificate for Pension or Annuity Payments).

If the W-4P is not returned to SERS, taxes are withheld using the rate for a married person with three exemptions. Each year, the Comptroller’s office is required to send you a 1099-R form showing the total annuity amount you received during the past year, as well as any taxes withheld.

Widow/survivor contribution refunds and alternative formula contribution refunds are also subject to federal income tax withholding, but you can rollover your lump sum payment and defer tax on it until a later date. Refer to the Tax brochure for more information.

If you elect to rollover all or part of your widow/survivor refund, or alternative retirement formula refund, you will receive a 1099-R form by January 31 of the following year from the Comptroller’s office which will reflect the amount rolled over.

If you receive a widow/survivor contribution refund because you were not married at retirement and you later remarry, you can repay the refund plus interest after you have been married one full year, to qualify your spouse for a survivor benefit.

SERS retirees receive a 3% increase in their pensions on January 1 following their first full year of retirement or age 60, whichever is later. If you retired using the Rule of 85, you are eligible for your first increase on January 1 following your first full year of retirement, even if you are not age 60.

Future increases of 3% of your current pension will also be made each January 1 thereafter. Future increases are not limited by the 75% maximum. If you retired under the alternative formula, you will receive a 3% increase to your pension on January 1 following your first full year of retirement or age 55, whichever is later. Future increases are not limited by the 80% maximum.

Tier 2 retirees receive an increase in their pensions on January 1 following their first full year of retirement, or age 67, whichever is later.

Future non-compounded increases of the lesser of 3% or one-half the annual increase in the consumer price index for the proceeding calendar year will also be made each January 1 thereafter. Future increases are not limited by the 75% maximum. If you retired under the alternative formula, you will receive an increase to your pension on January 1 following your first full year of retirement or age 67, whichever is later. Future increases are not limited by the 80% maximum.

If you receive a widow/survivor contribution refund because you were not married at retirement and you later remarry, you can repay the refund, plus interest, to qualify your spouse for a survivor benefit.