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.
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