Health care changes, COLA increase can affect your monthly pension benefit
The Ohio Public Employees Retirement System issues benefit change notices when our retirees’ pension amounts change. These notices were sent to most retirees in late December for changes reflected in their January benefits.
The most-common reasons benefit amounts are different:
- The Medicare B reimbursement ended in 2016, and most Medicare-age retirees see a reduction of $31.81 for January.
- Health Care premiums for spouses increased because of an increase in the percentage of the premium the retiree now pays. In 2018, the retiree will pay the entire premium and therefore will see another increase in cost.
Other reasons a change may occur:
- A cost of living adjustment has been made to the account; they are applied annually on the anniversary of the month you retired.
- Changes to federal tax tables could alter the amount of your federal taxes withheld. These changes are most often seen in February of each year.
If you have questions about your tax withholding, we suggest you see a tax adviser. Remember that you are able to change your tax withholding at any time through your online account.
We have prepared a video that explains benefit change notices. You can find the video on our Got Mail? Get Answers website page.