2019 benefit statements mailed and online
In January, TCDRS retirees will receive their annual Benefit Statement for 2019. This statement will show your benefit payment amount for the year, as well as your current federal tax withholding and information about whether your employer passed a cost-of-living adjustment for 2019.
Changing your tax withholding
“Withholding” is any amount that TCDRS takes out of your monthly benefit payments for tax purposes. You can start, stop or change your federal income tax withholding on your TCDRS benefit payments at any time. You don’t have to have money withheld from your benefit payments to pay taxes. If you choose not to withhold federal income tax, or don’t withhold enough, you may have to pay a penalty to the IRS. Please consult a tax advisor or the IRS if you need help with your selection.
You can view and change your current tax withholding at any time by signing into your account at www.TCDRS.org and clicking “Federal Tax Withholding” in the left menu. Alternately, you can change your withholding by sending us an Income Tax Withholding form (TCDRS-73).
Your TCDRS retirement benefit is a fixed benefit payment. That means the benefit amount will be the same every month for the rest of your life once you start receiving it. Over time, your benefit purchases less and less due to inflation. Every year, employers have the opportunity to consider the cost of their total benefits package and decide whether to adopt a cost-of-living adjustment, or COLA, to help restore some of their benefit’s purchasing power.
At the beginning of each year, TCDRS lets retirees know if their benefit has changed.
Please call Member Services at 800-823-7782 with any questions. We are here to help!