Note: ORS does not offer tax or legal advice. On this page, ORS is providing certain tax-related information to you but is not providing tax advice. For questions regarding tax or legal matters, consult with a professional advisor; the Internal Revenue Service or Franchise Tax Board.
When you retire, you submit a completed tax withholding form to ORS.
State Income Tax Withholding: ORS only withholds state income taxes for California. ORS does NOT withhold state income tax for any other state.
If you reside or move out of state, California income tax will not be withheld, and an updated Tax Withholding form must be submitted.
If you reside outside of the U.S.: for information and instructions, please see IRS Form W-4P IRS Form W-4P and EDD Form DE-4P EDD Form DE-4P
To change your withholding information: You can change your tax election at any time by completing a new Tax Withholding form available at Forms | San Jose Retirement Services (sjretirement.com)).
Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) Annual Notice
The Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) requires that ORS notify retired members each year that they may change their tax withholding election.
ORS TEFRA Annual Tax Withholding Notice
Changing your Tax Withholding
Because your tax situation can change from year to year, you may want to adjust the federal or California state withholding amounts deducted from your monthly benefit payment. There are a few ways to change your tax withholding.
Mail or fax the following completed documents to ORS:
California Withholding Certificate for Pension or Annuity Payments
IRS Withholding Certificate for Pension or Annuity Payments
FAQ 2022 Form W-4P and W-4R
1099-R Annual Tax Reporting Statement
- 1099-R tax forms are mailed by the end of January each year.
- If you recently moved, be sure to update your mailing address here: Address Change Form
- You can access and download your tax statements online by logging in to the Member Portal.
- To request a duplicate or replacement 1099-R tax form by mail, contact us by phone at (800) 732-6477 or by email at firstname.lastname@example.org
- Your 1099-R tax form includes the amount of retirement income you received during the tax year.
$3,000 Tax Exclusion for Retired Public Safety Officers
- The Pension Protection Act of 2006 allows Public Safety Officers who retired either
after attaining “normal retirement age” or for disability to exclude annually up to
$3,000 of an otherwise taxable pension distribution from federal income taxation,
if the money is used to pay for "qualified health insurance premiums" and is paid
directly from the plan to the health insurer.
- "Qualified health insurance premiums" mean premiums for coverage for the retired
Public Safety Officer, his/her spouse, and his/her dependents by an accident or
health plan or qualified long-term care insurance contract.
- Please consult with a tax professional for guidance on this topic and how to claim
the deduction. You will need to report your total eligible distribution on Form 1040,
Form 1040A, or Form 1040NR, as applicable. Refer to Section 402(l) of the Internal
Revenue Code and IRS Publication 575 for more information.
- The amount shown in box 2a of Form 1099-R from the Office of Retirement
Services will not reflect this deduction. However, retirees may provide their tax
consultant with copies of their pay stubs, which include the year-to-date amount
paid by members for healthcare premiums.
- Pay stubs can be printed by members from their MemberDirect account.