Since JRS member contributions are not taxed at the time they are contributed, most, if not all, of your retirement benefit will be subject to federal income tax. After you retire, JRS will notify you if a portion of your contributions has already been taxed (for example, if you transferred contributions from PERS).
You must complete a W-4P form to tell DRS how much of your benefit should be withheld for taxes. If you do not, DRS will follow IRS rules requiring withholding as if you are married and claiming three exemptions. It is your responsibility to declare the proper amount of taxable income on your income tax return.
Retirement benefits are not generally subject to assignment or attachment. However, payments received by you in the form of retirement benefits or as a refund of your contributions may be subject to payment of court and administrative orders for spousal maintenance and child support, or payment of any orders authorized by federal law. For more information, refer to the publication, Can Legal Action Affect My Retirement Account?
Legislation passed in 1991 authorized JRS to divide pensions between members and ex-spouses based upon court ordered property division. If the divorce decree complies with the applicable law, JRS will send the property division payment directly to the ex-spouse.