Notice of Annuity Adjustment

[Khan]

Received such today for 2010.

No COLA.

Slight decrease in IRS withholding.

$28 more per month

 

[mickeyd]

Slight decrease in IRS withholding

Don't you mean increase?

I received notice that the federal tax deductions on my COLAd pension was going up. The reason was that the law that reduced taxes in 2009 no longer applied to 2010 so it was back to the appropriate tax table. You can always adjust it back if you prefer, but you probably already know this.

 

[freebird5825]

Same here...
No COLA.
Gross monthly amount is identical.
Approx $50 less fed tax to be deducted.
Pension is CSRS survivor benefit, filing status is single.

 

[Khan]

Same here...
No COLA.
Gross monthly amount is identical.
Approx $50 less fed tax to be deducted.
Pension is CSRS survivor benefit, filing status is single.

That may have been not clear: IRS withholding decreased, therefore amount deposited increased $28.

 

[freebird5825]

That may have been not clear: IRS withholding decreased, therefore amount deposited increased $28.

Yes, less fed tax is same as an increase in net amount deposited.
I'm in sync.

 

[happy2bretired]

That may have been not clear: IRS withholding decreased, therefore amount deposited increased $28.

I got one too Khan...$27.50 IRS reduction making my annuity more. Just about the same amount that my health insurance will go UP after the first of the year.

Maybe they made a mistake.

 

[Dreamer]

I received the same notice stating no COLA, but amount is going up $50.00 due to the IRS tax withholding rates have changed for payments made after 12/31/09. I was wondering if they made a mistake also. I do not want to owe money next year.

 

[ziggy29]

Seems odd that the withholding would go down. If income is truly "fixed" I'd expect to see slightly less withholding IF the tax brackets were adjusted upward for inflation, but if they haven't changed, I don't know why withholding would change.

 

[Notmuchlonger]

Makes sense with inflation being down this year. Providing you are doing it right