Helpful Link to Retired Minnesota Veterans: Click here to open the Pioneer Press article published on April 12, 2017 “Retired Minnesota veterans can get pension tax break this year.”
1099-R forms for tax year 2016 were postmarked on January 23, 2017.
The SPTRFA sends a Statement of Income, or 1099-R Form, in January for the prior year’s earnings. Similar to a W-2 form from an employer, the 1099-R reports your annual benefit payments for the previous year. For a full 1099-R form explanation, click here.
Cost of Living Adjustment (COLA) letters are mailed in December of every year.
The COLA increase for January 1, 2017 will be 1% over your current benefit.
SPTRFA retirement benefits are subject to state (dependent on the state that the retiree resides) and federal income tax, and can include both a tax-free amount and a taxable amount. Member contributions made to SPTRFA before January 1, 1983 were taxed (unsheltered) and are not subject to tax in retirement. However, member contributions made on and after that date were not taxed (sheltered) and become taxable in retirement.