Subject: 13th check
As of November 2, 2021 our pension fund’s performance was 10.5% for the year to date. We have 8 full weeks left until year end, 12/31/21, and if we end the year with at least a 3% return we should be able to issue another 13th Check this year. If approved by the Board.
We are currently well above that, and things look real good for the Fire & Police Pension Fund, and its ability to issue a 13th Check.
In fact, our Fund has increased more than $350 million in value this year. While we are well above the performance necessary for a 13th Check, we would need at least a 13% return at year end to be able to consider a 14th Check.
Attached is the formula used to determine a 13th check:
The 13th Check is calculated as follows:
1st, the check was earned due to 5 consecutive years of positive investment out performance.The final year of that calculation was 2021. So the 13th Check is calculated on the gross amount of your monthly pension check for calendar year 2021.
2nd, The Fund follows IRS guidelines and deducts 22% Federal income Tax
3rd, if you retired during 2021, your 13th Check will be prorated
Finally, if you were retired the entire 2021 calendar year, you can multiply your 2020 monthly check amount , times .78, and that will be the amount deposited in your account , as your 13th Check
So that brings the question of why the .78? Taxes - they took out 22% for federal tax, leaving the remaining 78% as the net amount deposited in your bank account.