A new year means possible tax and health plan premium changes to your retirement benefits. You can make changes and selections through your myCalPERS account. Here are a few reminders:
- Tax Withholding: Effective January 1, 2023, the IRS released a revised Form W-4P that changes the federal tax withholding elections available and the calculation method that we use to determine the amount to be withheld. If you are already receiving your pension and are not making any changes to your federal withholding elections, then you’re not required to file a new form. A tax advisor can help you decide if you should make any changes to your tax withholding elections for your 2023 benefits. Learn more.
- 1099-R Tax Form: If you’ve opted to go paperless, we will email you in early January when your 1099-R or W-2 is ready. If you didn’t opt out, you will continue to receive your paper tax statements by mail. Learn more.
- Health Premium: The 2023 health plan premiums will go 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 2023 health plan premiums, Medicare Part B premiums, and the state’s contribution. Learn more.
- 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. Important note: Your December 2022 direct deposit will post on January 3, 2023, which is the first business day of the month. View your 2023 pay days.
- 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 2023.