End-of-the-Year Information for Retirees and Benefit Recipients
During this time of year, the to-do list items seem to keep multiplying.
While there are a few things to keep in mind as far as your SERS payments and benefits are concerned, we are here to help you keep it all straight with some end-of-the-year considerations.
January Reminders for ALL Retirees and Benefit Recipients
- Your payment for January 2022 will be deposited into your bank account on the first business day of month, which is Monday, January 3.
- SERS will send a 1099-R to the mailing address on file by January 31. This provides the pension amounts you received for the year, the amount of taxes withheld, and other tax information. The form is also available through Account Login. If you haven’t already registered for an account, we encourage you to do so.
If You Notice a Change in Your January Payment
This change may be related to:
Health Care Premiums
Aetna Medicare Plan (PPO) premiums will remain the same, while Aultcare PPO, Delta Dental, and VSP premiums will decrease slightly. Aetna Choice POS II premiums will increase by 6.4%. Please visit the 2022 Open Enrollment page on our website or watch the 2022 Open Enrollment presentation for more information.
The Internal Revenue Service (IRS) has updated the income-tax withholding tables for 2022. The updated percentage method tables reflect changes in tax rates and tax brackets and will be effective on your January check. The withholding information is posted on www.irs.gov.
How Does This Affect Me?
Depending on your tax bracket and number of allowances you designated, your monthly payment may be more or less than previous months. Review your 2022 payment stub and compare it to a 2021 payment stub for the change. Both your state and federal tax withholding can be updated anytime using Account Login.
If you began receiving a payment or benefit prior to April 1, 2018, you will receive a 2.5% cost-of-living adjustment (COLA) on the anniversary of your benefit effective date. If your benefit effective date was on or after April 1, 2018, you will receive a COLA on the fourth anniversary of your allowance or benefit.
Reporting Your COLA to Social Security
If you are eligible to receive a COLA for your SERS service pension or disability allowance, and you also receive a Social Security benefit based on a spouse, ex-spouse, or deceased spouse’s work record, you must notify Social Security in the month that you receive a COLA, or if the Social Security Administration requests information.