Retired Members Take Note:
New Tax Tables Impact Withholdings

(March 11, 2009)– In conjunction with the U.S. economic stimulus plan's new federal tax credit for working Americans, IRS tax withholding tables have changed. The new tables are effective April 1, 2009 and may impact NYSTRS benefit payments beginning with the April 30 disbursement.

For those retirees having federal taxes withheld based on marital status and the number of exemptions claimed (as opposed to a fixed withholding amount), the effect will be a decrease in the tax withheld and a corresponding increase in the monthly payment. Total annual under-withholding could be up to $400 for individuals and up to $800 for married couples filing jointly.

Unless you request a change to your withholding, the amount you owe in federal taxes (or the refund amount) may differ from your expectations when you file your 2009 and 2010 tax returns.

The Retirement System urges you to discuss these tax table changes with a qualified tax advisor. If you decide to change the amount withheld from your NYSTRS pension by filing a new W-4P Withholding Election and Certificate with the System, the form generally must be received by the 12th of the month in which you request the change to occur.

For additional information and assistance, visit the IRS Web site (www.irs.gov) and use the Withholding Calculator, review the Tax Tables found in Publication 15-T, or refer to IRS Publication 919 (How Do I Adjust My Tax Withholding?).

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