Your MERS benefits are not subject to State taxes, but they are subject to Federal taxes. You will receive a 1099-R each year with your gross and taxable earnings. If you received any money from your DROP account or rolled-over your DROP balance, you will receive a separate 1099-R. 1099’s are mailed by January 31st to the address we have on file. We strongly urge you to keep us updated with your current address by using the Self Service Portal to create an account that you can use to submit changes or by submitting a Retiree Update Form.
Retired Members Frequently Asked Questions
Are my retirement benefits taxable?
Category: Retired Members
How do I change my address?
1. Print a copy of the Retiree Update Form from our website and mail or fax it to our office; OR
2. Mail or fax the changes to be updated in a letter you sign and date; OR.
3. Your former employer can download the MERS' Retiree Update form for you to complete and then fax it to our office; OR
4. Log into your account on the Self Service Portal and make the change.
Category: Retired Members
How do I change my bank account information for direct deposit?
1. You can print a copy of the direct deposit form from our website to mail or fax to our office. OR
2. Your bank can fax a copy of their direct deposit form to our office. OR
3. Your former employer can download the MERS' direct deposit form for you to complete and then fax it to our office. OR
4. You can submit the change through your account on the Self Service Portal.
Category: Retired Members
How do I change the amount of Federal taxes being withheld from my benefit?
You need to complete a new W4P or write a letter stating the amount you want withheld and either fax or mail it to our office. W4P forms are available on our website (W4P Form).
Category: Retired Members
How do I receive a benefit verification letter?
You must complete a Retiree Income Verification Request form and either mail or fax to the retirement system office. If you do not have internet access you may make your request by writing a letter and mailing it to our office.
Category: Retired Members
How to report a death of a retiree?
Call the MERS office as soon as possible with all information available. Try to obtain the following information:
1. Date of death
2. Immediate family member - name, address, and phone number. If someone other than an immediate family member contacts you, obtain their contact information.
3. Find out their marital status. If the member has a legal spouse, obtain their contact information.
4. If in Plan A, find out if there are any minor children. Obtain the children's guardian contact information.
Category: Retired Members
I need a copy of my 1099R.
1. As long as your address is correct in our system, call our office to tell us what year you need a copy of and it will be mailed to your home address on file.
2. If your 1099R was returned due to an incorrect address, you will need to send in an Retiree Update form with your current mailing address before a copy will be mailed.
Category: Retired Members
What is an "excludable" amount on my 1099R?
Retirement contributions withheld from your paycheck before January 1, 2000 were deducted after taxes were withheld. You paid taxes on these contributions, so the amount you contributed as of December 31, 1999 are excluded from your gross. This amount is not excluded in a lump sum, the IRS requires a certain amount be excluded yearly until the amount has been depleted.
Category: Retired Members
What is the effective date for direct deposit:
Your monthly retirement benefit will be deposited on the first business day of each month. If the 1st is on Saturday or Sunday, your deposit will be made on Monday. If the 1st is a bank holiday, your deposit will be made the next business day.
Category: Retired Members
When are monthly benefit checks mailed?
Your check will be mailed on the last business day of each month. You must wait 10 business days before we can reissue checks that have not been received. If a stop-payment is needed and your check is re-issued, there will be a $35.00 fee deducted from your benefit. The fee will be waived if you change to direct deposit of your monthly benefit.
Category: Retired Members
Why did my monthly benefit amount change?
Your monthly retirement benefit can change for the following reasons:
1. You submitted a new W4P or asked for a different amount to be withheld for Federal taxes.
2. You may have been overpaid in the past month(s) for a number of reasons.
3. The IRS published new Federal tax withholding tables.
4. You have a new deduction, such as child support or a tax lien.
Category: Retired Members
Why is my gross amount different from the taxable amount on my 1099R?
Retirement contributions withheld from your paycheck before January 1, 2000 were deducted after taxes were withheld. You paid taxes on these contributions, so the amount you contributed as of December 31, 1999 are excluded from your gross. This amount is not excluded in a lump sum, the IRS requires a certain amount be excluded yearly until the amount has been depleted.
Category: Retired Members
Will I receive a cost-of-living adjustment this year?
Members should be aware that Cost-of-Living Adjustments (COLAs) are not guaranteed unless a self-funded COLA was selected at the time of retirement. When granted by the system, COLAs must be funded for the lifetime of all retirees who will receive the adjustment.
MERS has a Funding Deposit Account that may be used to fund COLAs. Monies are deposited into the account when the employer contribution rate is set at a rate higher than the rate necessary to fund the system.
When adequate funds are in the Funding Deposit Account, the recommended method to grant a COLA requires the system to have investment earnings at an actuarial rate higher than the expected rate of return. Also, the funded level of the system and the history of COLAs come into play.
The last COLA granted by MERS was a 1.6% adjustment in July 2022.
Category: Retired Members
