Pension benefits are taxable income. Each year in January, the Fund Office sends you Form 1099-R showing the benefits paid to you. As required by law, this information will also be supplied to the IRS.
As a participant or a beneficiary who is receiving survivor benefits, federal income tax may apply to your pension payments. To determine the taxable portion of your total annual benefit payment which may be subject to federal income tax withholding, see IRS Publication 505 Tax Withholding and Estimated Tax or consult with your tax advisor.
Please remember you may choose at any time whether or not to have federal taxes withheld from your payments in accordance with federal tax law. You may obtain federal and California state withholding forms by contacting the Fund Office at firstname.lastname@example.org or by calling (800) 595-7473. You may also download the forms from the SCPTAC web site in the Forms & Documents page under the Retirement Fund Forms section.
Please note, if you elect not to have federal taxes withheld from your payments, you may be responsible for paying estimated taxes, and you may also incur penalties under the estimated tax rules. For more information, contact a tax advisor.