and State Taxes on Benefits
Retirement allowances (including disability retirement)
are generally considered taxable income under both
federal and State of California income tax laws. At
the time of retirement you will need to instruct OCERS
on your tax withholding election. If you have any
questions regarding the taxability of your retirement
allowance, please consult a tax professional.
OCERS does not withhold state income taxes for any state
other than California.
Special Rule for
After-Tax Member Contributions
Member contributions prior
to 1986 were made on an after-tax basis. Contributions are not taxed when disbursed, but the
interest is taxable. Purchases of Service or redeposit of contributions (lump sum payment via
personal check or installment payments) made with
after-tax monies are also not taxed when disbursed.
may change your current tax withholding options, by
myOCERS and submitting your
changes online, or you may download the
Tax Withholding Election form and return it to
to visit the IRS
Seniors & Retirees Web page for a wealth of tax tips
The IRS also has a
Tax Scams/Consumer Alerts Web page with up-to-date
safety tips to avoid becoming a victim of tax scams and
identity theft. To learn more,
The 1099-R form provides each payee with detailed
information of his or her income for the previous year.
OCERS mails out 1099-R statements to all payees by
January 31st of each year. You may also view or print
copies of your 1099-R statement online, by logging into
To request copies of your 1099-R for previous years,
please call OCERS at (714) 558-6200.
for information on how to read your 1099-R statement.
Limits and The
Economic Growth and Tax Reconciliation Act of 2001
Benefit payable to a Member under the System at any time
shall not exceed $220,000 for 2018 ($215,000 for 2017) or such other
dollar limit specified under section 415(b)(1)(A) of the
Code, automatically adjusted under § 415(d) of the Code,
effective January 1 of each year, as provided by the
Internal Revenue Service. The limit may be decreased for
members retiring prior to age 62 or increased for
members retiring after age 65. Members should
consult their tax professionals with questions regarding
Benefit Compensation Limit for PEPRA Plan Formulas U, V, and W
The 2018 annual benefit compensation limit for an eligible
PEPRA member in plan U, V or W is
The 2017 limit was $142,530.