When are retirement allowance checks distributed?
Retirement allowance checks are mailed three business days before the end of the month. EFT funds are wired to financial institutions on the last day of the month.
Is my first retirement allowance payment retroactive?
Yes. If you receive advance payments, your first payment will be retroactive to your effective retirement date (or initial payability date, if you retired under deferred payability). Your first regular payment will contain the amount you are due from the date of retirement, minus any advance payment(s) you have received, plus applicable interest.
What are advance payments?
In order to provide you with retirement income as quickly as possible, TRS issues advance payments of your retirement allowance beginning with the payroll approximately one to two months following your effective retirement date (or initial payability date, if you retired under deferred payability). However, if your regular retirement allowance is available at that time, you would receive your regular retirement allowance instead.
If TRS cannot finalize your retirement allowance within four months of your retirement date, we would increase the amount of your advance payments, so that they would be closer to the amount you will receive once your retirement is finalized.
Advance payments are not estimates of your retirement allowance payments; in fact, your advance payments are designed to be smaller than your retirement allowance payments. The advance payment calculations do not reflect all the factors used to determine your retirement allowance payments. TRS calculates your advance payments based on your retirement plan choice, payment election, salary, and any applicable age-reduction factor. Total Service Credit is not used in the advance payment calculations.
Can I pay my own federal taxes once I retire?
Yes. However, you should ask the Internal Revenue Service or your tax consultant for advice regarding "estimated taxes" in order to avoid the possibility of penalties due to underpayment.
Why does my monthly retirement allowance amount fluctuate?
There are several possible explanations. For example:
- Your first payment may contain retroactive funds, so subsequent payments may be smaller than your first payment.
- Deductions for insurance and union dues may have begun (usually in the first few payments).
- If you elect to change the amount of federal taxes withheld from your payments, the amount of your payments would be different after your federal withholding election is implemented.
- If some of your funds are invested in the variable-return Passport Funds, the return on those investments would fluctuate from month to month.
- A revision of your retirement allowance may have been implemented, in which case you would receive a revised Benefits Letter.
How did TRS determine the number of units paid to me each month?
When you retired, an actuarial calculation was made to determine the number of units you would be paid as part of your retirement allowance. The calculation was based on several factors, including the number of units you had at retirement, your retirement elections, and life expectancy. (If you chose to receive your TDA funds as an annuity, a similar calculation was made.)
Please keep in mind that the number of units you will be paid will normally remain constant from month to month unless you transfer funds to or from a variable-return Passport Fund.
How can I find out how many units I am being paid each month?
The number of units paid to you monthly is indicated on your Electronic Fund Transfer (EFT) Quarterly Statements. If you receive your payments by check, this information is included on your retirement allowance and/or TDA annuity check stubs.
if you are maintaining your TDA account after retirement through TDA Deferral status, your TDA Quarterly Statement shows how many units you have in each variable-return Passport Fund. This information is also available on your monthly online statements.
What should I do if my retirement allowance check is late, lost, or stolen?
You should file a lost check affidavit. There are three types of affidavits: the Affidavit for Check Lost after Receipt (code BK3); the Affidavit for Missing Check (code BK2); and the Affidavit for Forged Check (code BK1). A filed affidavit authorizes TRS to use the "Chemlink Quickquery" system to determine if a check is outstanding or if it has been paid. It also provides TRS with authorization to stop payment on a check, to create a duplicate check, or to revoke a stop payment on a check. If you are unsure if you have outstanding funds due you, you may access the Unclaimed Funds feature in the Resources section. This lists retirement allowance checks issued by TRS that have not yet been cashed.
If I have a check from TRS that I did not cash within the 90-day time period allowed, what can I do?
You may have a new check mailed to you by submitting a Check Reissue Request Form (code BK6). Your check would be reissued approximately 15 business days after TRS receives the form.
Can I have my paystubs recreated in order to have a payroll record for this past income tax year?
Yes. You may do so by sending a written request to TRS. However, please be aware that recreating paystubs can be a lengthy process.
How is my retirement allowance taxed?
QPP retirement allowance and TDA annuity payments generally are federally taxable and may be subject to state and local taxes; please check with your tax advisor.
Are federal taxes withheld from my retirement allowance payments?
Federal taxes will be withheld from your first retirement payment at the rate for a married person with three dependents, as required by the Internal Revenue Service (IRS). This rate would continue for all payments (both advance payments and regular retirement allowance payments) until you elect a new withholding rate.
May I change my withholding elections?
Yes. You may elect a new rate by filing an online election through the secure section of our website or by filing a Withholding Certificate for Pension or Annuity Payments (W-4P) with TRS.
Please note that, if you have a permanent home address outside of the United States, Internal Revenue Service (IRS) regulations prohibit you from electing to have no federal income tax withheld from your retirement benefits.
Your withholding election would generally take effect approximately two to six weeks after TRS receives your online W-4P filing, or approximately two months after TRS receives your paper form.
How do I report the taxable portion of retirement funds issued to me?
The taxable portion of these funds must be reported on your tax return. Taxable distributions from the Qualified Pension Plan should be reported under "total pensions and annuities." Taxable distributions from the TDA Program should be reported under "total IRA distributions."
Why are there so many deductions from my retirement allowance payment?
Your retirement allowance payment includes deductions for withholding tax, union dues, health insurance, and catastrophic life insurance.
Who should I contact regarding deductions related to health insurance?
All questions pertaining to health insurance should be directed to the New York City Health Benefits Program at 22 Cortlandt Street, 12th Floor, New York, NY 10007. The phone number is (212) 513-0470.
Who should I contact regarding deductions related to union dues?
You should contact your union directly.
Do I receive a cost-of-living adjustment to my retirement allowance?
Eligible retirees receive an annual cost-of-living adjustment (COLA) of between 1% and 3%, based on half of the Consumer Price Index increase for the year ending March 31. This increase is calculated on the lesser of the retiree's maximum fixed retirement allowance or $18,000.
The following individuals are eligible for a COLA:
- Retirees who are at least age 62 and have been retired for at least five years;
- Retirees who are at least age 55 and have been retired for at least ten years;
- Disability retirees who have been retired for at least five years;
- Recipients of accidental death benefits who have been receiving their benefit for at least five years;
- Designated annuitants who are a surviving spouse of a member who died prior to 1980, and who were entitled to a lump-sum benefit, but elected a lifetime annuity instead; and
- Surviving spouses who are receiving a joint and survivor benefit, whose spouse, if alive, would have received a COLA benefit. (Note: Such individuals are eligible for half the COLA amount their spouse would have received.)
Can I receive a letter stating that I am collecting my retirement allowance from TRS?
Yes. You may submit a written request for a pension verification letter, or request one in person at TRS, as long as you provide proper identification.
How can I apply for my Social Security benefits?
For information regarding Social Security benefits, please contact the Social Security Administration at (800) 772-1213 between 7:00 a.m. and 7:00 p.m. on weekdays.