January 2018 eNews

IRS Form 1099-R to be Mailed by the End of January 2018

The MSRB will mail your 2017 IRS Form 1099-R by January 31st. This form contains important benefit payment information required to complete your 2017 tax return. If you don’t receive it by February 15, 2018 please call our office.

As part of the MSRB’s transition to the MARIS computer system, certain programmatic changes were made to the Board’s tax reporting process. Please note that for most benefit recipients who received either a superannuation or “regular” retirement benefit, a survivor benefit or an ordinary disability benefit in 2017, you will notice your 2017 tax information is being reported in the same manner as 2016. The actual amounts being reported in boxes 1, 2a and 4 will reflect your 2017 amounts. Most of this group will also see the same distribution code in box 7. As always, box 5 will report your total 2017 paid health and dental insurance premiums.

Separately, below are some key changes that are relevant to the following three sets of benefit recipients:

» 1. Retired members who turned 59 ½ in 2017 will receive two Forms 1099-R. In most cases, the retirement allowance paid up until the month before you turned age 59 ½ will be reported on one Form 1099-R using distribution code 2, and the retirement allowance paid for the remainder of the year will be reported on a second Form 1099-R using distribution code 7. Information from both forms should be used for tax reporting purposes;

» 2. Accidental Disability Benefit Recipients (Member) or related Option C survivor recipients will see the gross retirement allowance paid in the tax year be reported in box 1. Previously the MSRB reported only the taxable annuity amount in this box;

» 3. Members who have a portion of their benefit issued to an alternate payee pursuant to a Qualified Domestic Relations Order (“QDRO”) will not have those payments included in box 1 of your Form 1099-R if the alternate payee is responsible for reporting his/her own income and taxes. Member distribution codes in box 7 will be either a 2 or a 7 depending on your age for the tax reporting year (see above item #1). The alternate payee will also receive a Form 1099-R that reports the total amount of QDRO payments received if applicable. Distribution code 2 will always be used in box 7 for the alternate payee, regardless of age.

Please be sure to keep your mailing address up-to-date with MSRB to ensure you receive your 1099-R tax statement in a timely manner. Note, even if you receive your allowance through direct deposit, the board will periodically mail important correspondence to you. Members who need to update their address may use the Retiree Change of Address Form, which is posted on our website.

Your Form 1099-R is now available to view online on PayInfo. However, it is important to note that the digital version of this form is unofficial and for reference only. If you receive two Forms 1099-R, you may be only able to view one due to limitations to the PayInfo application.

Note: the MSRB cannot accept address changes over the telephone, nor can MSRB staff advise you on tax-related matters. Please direct all questions about your individual tax liability to your accountant tax professional, the Internal Revenue Service, or your state Department of Revenue.

Upcoming Changes to Your Monthly Benefit

The new 2018 federal tax rates will be reflected in the withholding amounts beginning with your January pension payment. Therefore, some of you may notice a change in your NET amount. Please retain your statement and compare it with your December 2017 statement in the event you have questions regarding your tax withholding.

Is there something you would like us to communicate in an upcoming Retiree eNews Bulletin? If so, let us know!

Please e-mail your request and/or comments to MSRBCommunications@tre.state.ma.usWe look forward to hearing from you!

Did You Know?

The Massachusetts State Retirement Board currently administers pension benefits for nearly 63,000 retired members, survivors, and beneficiaries. For more facts about the Retirement Board, visit our website.

A Note About GIC

Due to the number of recent inquiries to the MSRB regarding the Group Insurance Commission (GIC), we would like to clarify that the GIC is a separate state agency not under our control. The MSRB has no role, and was not aware of the actions the GIC was considering related to health plan options.

According to the GIC’s website, the Commission expects to introduce a motion to vote for reconsideration of proposed changes at their February 1, 2018 Commission Meeting. To read the full announcement, click here.

If you have questions about your GIC health and other insurance benefits or premiums you must contact the GIC direct at 617-727-2310 and select option # 2 or visit their website. Thank you.

Treasurer Goldberg Warns of Lottery Scam Email

Illegitimate emails have been sent in the name of the Treasurer. They claim that the recipient has a pending donation from the most recent Powerball winner, and you must click a link to claim it. According to Treasurer Goldberg, these emails are a scam and have not been sent by her or the Massachusetts Office of the State Treasurer.

“It has come to our attention that emails using my name and likeness have been sent to residents across the state,” said Treasurer Deb Goldberg. “Our goal is to ensure that no Massachusetts citizen is taken advantage of as part of this scam.”

If you have any questions, please contact the Treasurer’s office at (617) 367-6900. You can view an example of a fraudulent email here.

Did you receive this Retiree eNews Bulletin as a forwarded e-mail from a friend? If you are a MSERS retiree and would like to receive your own monthly Retiree eNews Bulletin, send your e-mail address to us at MSRBCommunications@tre.state.ma.us

Note: Please include your full name and either your MSRB I.D. or the last four digits of your Social Security Number, and request that we add it to our distribution list.

Have you, or are you, planning to move? If so, be sure to notify the Board of your address change! Retirees who already have summer and winter addresses on file with the Board can call us to request the address update. Otherwise, you'll need to notify the Board in writing. You can download our Change of Address form here!

Past issues of our newsletter publications can be found on our website

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