E-Help 9/23/2005

IMRF's SALARY DEFINITION FOR CAR ALLOWANCE

I am glad you were able to take advantage of the AA training IMRF provides.  In response to your question regarding a car allowance as it relates to IMRF's definition of earnings, please see the Authorized Agents Manual -

Coverage section 3.96F - Non-Cash Earnings #5 Automobile Use.

It states: Automobile Use
Automobile allowances paid to compensate for the business use of a personal car are not IMRF earnings. This is true even if the allowance is a flat amount paid monthly. Reimbursements for business use of a personal car are also not reportable.

The value of the personal use of an automobile furnished by the employer is reportable earnings.

I hope this helps clarify your understanding of car allowance.  If you have further questions, please feel free to contact me.

Carla K Bermes
New Account & Member Services Representative