Retiree News
News from the Public Employees Benefits Board
Upcoming health care coverage changes contained in PEBB’s October newsletter
If you have insurance coverage from the Public Employees Benefit Board (PEBB), PEBB mailed you an expanded October newsletter in place of the 2009 Open Enrollment packet you normally receive. The newsletter shows your 2010 monthly premiums and plan changes for next year.
Also – if you haven’t yet received it – watch for a letter from PEBB showing your current monthly premiums for 2010, as well as any other plans (and their premiums) available in your county of residence.
PEBB now requires proof of their eligibility
In September, the PEBB mailed a letter to all covered retirees who are not enrolled in Medicare explaining a new verification process. This process ensures that the state uses taxpayer dollars fairly and consistently to only cover eligible family members.
The letter explains PEBB’s eligibility rules for non-Medicare retirees and includes forms. You must either remove or provide proof of eligibility for your family members by November 30, 2009. If you don’t respond, PEBB will remove all covered family members from your account early next year.
PEBB will later verify eligibility for Medicare retirees’ family members.
If you have questions about your insurance coverage or the verification process, please contact PEBB toll free at 1-800-200-1004 or 360-412-4200 in Olympia.
Update: Tax Withholding Changes for Retirees Receiving a Monthly Benefit
The federal stimulus package (American Recovery and Reinvestment Act of 2009) contained a provision that changed the federal tax withholding tables. The Internal Revenue Service directed that we use the new tables to calculate the tax withheld from your retirement benefit and we did so, beginning in April. This means that you may have less tax withheld from your benefit, however, the amount of tax you owe at the end of the year might not change.
The IRS has now issued new withholding tables that apply only to retirement benefits. Using these new retirement-only tables is optional. To make it easier for you, we have decided to continue using the tax withholding tables that were in effect in April. Many of you have already submitted a new Form W-4P to us and we don't want you to have to make another change.
Should you have any questions, we encourage you to talk with your tax advisor or the IRS especially if you are employed while receiving a retirement benefit. If you do not want to make a change to your withholding, you do not need to do anything. If you do wish to make a change to your withholding, you can complete and send us a new Form W-4P.
Though we cannot give you tax advice, we're always happy to help with questions about your benefit or how to send us the form to change your withholding. You can reach us at 1-800-547-6657 or (360) 664-7000.
Tax savings for retired public safety officers
Changing your benefit option or beneficiary designation after retirement