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 wish to have Federal tax 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 not withhold taxes.
·Pensions are paid on the first business day of the month if you have Direct Deposit. Checks are mailed on the first of the month and should be received within the week.
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.