Monthly Payment Amount May Change Effective January 1, 2019
Did you notice a change in your monthly payment amount effective January 1, 2019? This change could be related to your tax withholding and/or your health care premiums. Since neither of these changes increased or decreased your monthly gross payment amount, you do not need to report this change to Social Security.
- Tax Withholding
The Internal Revenue Service (IRS) has updated the income-tax withholding tables for 2019. The updated percentage method tables reflect changes in tax rates and tax brackets and were effective on your January 1st 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 2018 payment stub and compare it to a 2019 payment stub for the change.
- Health Care Premiums
Premiums decreased for most enrollees in the Aetna Medicare Plan (PPO) in 2019. For Aetna enrollees with only Medicare Part B and less than 25 years of service at retirement, premiums will remain the same.
There were also premium decreases for enrollees in the Paramount Elite Medicare and PrimeTime plans. For AultCare enrollees with only Medicare Part B and less than 25 years of service, premiums are increasing.
Our health care vendors submitted lower rates for 2019, which allowed SERS to pass along those savings to enrollees. Positive Medicare revenue, lower increases for prescription drugs, along with good claims experience all contributed to lower premiums.