© 2023 by Cyborg Solutions

INFORMATION ABOUT TAX WITHHOLDING ON PENSIONS
AND THE TIMING OF PENSION CHECKS

 

  • You may choose whether or not to have taxes withheld.  Benefits under the Plan are taxable income to the recipient.  (The IRS may charge a penalty if your tax withholding or estimated tax payments are not sufficient to cover your tax liability.)   If you desire withholding, please advise the Plan Office in writing of the dollar amount.  If you have made an election previously, it will remain in effect until changed or revoked, which you may do by notifying the Plan Office.  If you have not made an election, the Plan will use the classification of a married individual claiming three withholding allowances to determine whether or not to withhold federal tax from your pension.  This will NOT result in any tax withholding unless your monthly pension from this Plan exceeds $1,680.

  • Pensions are paid at the beginning of the month.  Checks are mailed the day before the first of the month if possible.


 

  • The Plan Office considers a check lost if not received by the 15th of the month.  You may request a stop payment and a new check on or after the 15th.  The reason for waiting until the 15th is that checks are usually delayed in the mail rather than lost.  To reissue earlier may cause an even longer wait for your money.  The original check probably would arrive before the reissue check, but could not be cashed because of the stop payment.


 

  • We understand that late or lost pension checks can cause financial problems for our pensioners; however, the Plan cannot control the timing of mail delivery.  The occasional postal delay is one of the reasons the Plan offers direct deposit service.  With this free service, your pension is electronically transferred into your account on the first business day of each month, with no chance of a check being late, lost or stolen. Click to download direct deposit sign-up form.