Public Employees’ Retirement System (PERS) Plan 1 and Teachers’ Retirement System (TRS) Plan 1 retirees received a permanent increase of 35 cents per year of service in their Uniform Cost of Living Allowance (COLA), effective January 1, 2008. To receive the gain sharing increase, retirees must qualify to receive the Uniform COLA as of July 1, 2007.
This “gain sharing” increase to the Uniform COLA occurs in January of even-numbered years when the previous four-year average rate of return on investments has exceeded 10 percent. The 2008 gain sharing Uniform COLA increase was the third such increase since gain sharing was authorized by legislation in 1998.
Engrossed House Bill 2391 repealed gain sharing after January 2008. The legislation also put in place a one-time permanent COLA increase of five cents per year of service, effective July 2009.
For more information, please read the gain sharing FAQ.
Your Internal Revenue Service (IRS) Form 1099-R was mailed at the end of January. It is also available through our online account service. If you do not have Internet access, please call us at (360) 664-7000 or toll-free at 1-800-547-6657.
The IRS offers several helpful publications on filing taxes. They are available at your local IRS office or on their Web site. You can also contact the IRS at 1-800-829-1040 or 1-800-TAX-FORM (1-800-829-3676).
Note for Public Safety Officers: If you’re a retired public safety officer and you elected to participate in the health insurance premiums tax savings program, you should have received a premiums deduction letter from DRS in January. Use the information in that letter, in addition to your 1099-R, for federal tax reporting purposes.
You may have noticed changes in your retirement benefit beginning in January 2008, for one or both of the following reasons:
Please contact the Washington State Health Care Authority if you have any questions regarding your health coverage. You can reach them at 1-800-200-1004.
Winter/Spring 2008