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Tax Tables
The Internal Revenue Service (IRS) released new tax withholding tables that incorporated the Making Work Pay tax credit in March 2009. The IRS mandated that PERS (and other public retirement systems) use the new tax tables. Those tables decreased the amount of taxes withheld from a monthly benefit.
The IRS has now given retirement systems, including PERS, the option to use additional tax tables issued following the Making Work Pay tax table change required in March 2009. The IRS has provided two options:
1.      Use the tax tables issued in March 2009, or
2.      Combine the March 2009 tax tables AND the new additional tax tables.
PERS has decided to leave the current (March 2009) tax withholding tables in place. When we changed the tax tables for the April 1, 2009 benefit payment, several hundred benefit recipients submitted new W-4P forms. If we change the tax tables again, those benefit recipients would have to resubmit new W-4P forms once again. Those who did not make a change can still submit a new W-4P to change their withholding if they so choose.