A portion of your SERS pension benefit is subject to federal and state income taxes. When you retired, SERS determined which portion of your benefit is taxable and which portion is not.
By January 31 of each year, SERS sends you IRS Form 1099-R for the previous calendar year. This form provides the pension amounts you received for the year, the amount of taxes withheld, and other information needed when filing your tax return. Along with Form 1099-R, SERS provides the Recipient Income Tax Information handout, which explains how to read the form and includes additional federal and state tax details.
If you elected a Partial Lump Sum Option Payment (PLOP) at retirement in addition to your monthly pension, that amount may also be subject to federal and state income taxes in the year it is paid, depending on how the benefit was distributed. SERS will issue a separate Form 1099-R and Recipient Income Tax Information handout by January 31 of the year after you received the PLOP to help you report it correctly.
By law, SERS must withhold federal income tax from your monthly pension payment unless you choose not to have taxes withheld, which must be elected in writing. To indicate your preference, you must complete and submit IRS Form W-4P to SERS. This form instructs SERS on whether income tax should be withheld.
If you do not submit Form W-4P, SERS will withhold federal income tax as if you filed single or married filing separately.
Your SERS pension may also be subject to state and/or local income taxes, depending on where you live. You should contact the appropriate state or local tax authority to understand your specific tax obligations.
For Ohio residents, a SERS pension is subject to Ohio state income taxes. However, SERS does not automatically withhold Ohio taxes unless you submit a form specifying the amount you wish to have withheld.
Disclaimer: You should consult your own tax advisor, the IRS, or state or local tax departments for advice on your specific tax questions. SERS cannot provide individual tax advice.
You can update both your federal and state tax withholding at any time using Account Login. Keeping your tax withholding up-to-date can help you avoid unexpected tax bills and better manage your retirement income.
You also may complete and return the appropriate forms directly to SERS:
We’re glad you’re a member of SERS. If you have questions about your retirement account or benefits, we are here to help.
