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What Retirees Need to Know for 2020

A new year means possible tax and health plan premium changes to your retirement benefits. Changes and selections can be made through your myCalPERS member account. Here are a few reminders:

Tax Withholding: Tax tables are revised annually by the Internal Revenue Service and the Franchise Tax Board. A tax advisor can help you decide if you should make any changes to your tax withholding elections for your 2020 benefits.

1099-R Tax Form: Use this form for reporting your retirement income from the previous year. This form is mailed annually by January 31 and is also available in your myCalPERS member account by February 1.

Health Premium: The 2020 health plan premium rates went into effect on January 1. Log in to your myCalPERS account to view your specific health plan details.

Medicare Reimbursement: You may receive a Medicare Part B reimbursement if you are a state and/or California State University retiree enrolled in Medicare Part B and if your CalPERS health premium cost is less than the state’s contribution. The reimbursement may increase or decrease due to changes in the 2020 health plan premiums, Medicare Part B premiums, and the state’s contribution.

Direct Deposit Statements: Benefit statements can be viewed in myCalPERS. These statements will indicate the amount deposited in your account each month, along with any itemized reimbursements or deductions.

Cost-of-Living Adjustment (COLA): Typically, this benefit begins the second calendar year of retirement, although the annual rate of inflation and retirement law could affect the onset of your COLA. Retirees receive an annual COLA paid in the May 1 warrant of each year. More details will be available on our website in spring 2020.