Federal tax table changes

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Why did my federal tax deduction change from 2009 to 2010 on my retirement benefit?
It is not uncommon for the tax tables to be updated by the IRS each year for various reasons. Normally these updates occur in January but they may occur at anytime throughout the year.
The change from 2009 to 2010 is most likely a result of the federal $400 “make work pay” credit. This credit was initiated in April 2009 which meant the credit was applied to 9 months of payments. In 2010 the credit will be allocated over 12 months which means the credit will be smaller on a monthly basis which results in your actual monthly withholding going up a bit relative to last year.
Now would be good time to review your tax withholdings to determine if you need to make any changes for 2010. You should always check your withholding if there are personal or financial changes in your life or changes in the law that might change your tax liability.
Making updates to your tax withholding can be done easily and quickly. Simply login to your secure portion of our website www.mosers.org and select tax withholding update. Print Friendly and PDF

Medical incentive

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I have heard that they might propose a bill again this year to lock in insurance rates at the active employee rate for 5 years or until the age of 62, whichever comes first, as an incentive for retirement. Is there any truth to that?
House Bill 1583 (HB1583) was just introduced and proposes something very similar to what you described. In summary, HB 1583 provides that those MOSERS members covered by the Missouri Consolidated Health Care Plan (MCHCP) who retire within a specific timeframe under normal retirement provisions may elect:
  • To continue medical coverage at active employee rates until January 1, 2015, or upon becoming eligible for Medicare (currently age 65), whichever occurs first.
  • To continue spouse, dependent and any ancillary coverage (i.e. dental, vision, etc at the applicable retiree rates.
    The medical incentive would apply to members terminating employment on or after December 1, 2009, retire within 60 days and elect normal retirement between January 1 and September 1, 2010. Members who do not have MCHCP medical coverage could be eligible for this provision but only if their governing boards elect to provide the incentive. (This includes the regional colleges and universities, the department of transportation, the state highway patrol, and the conservation commission.)
As introduced this bill does not modify any retirement provisions and individuals with retirement applications already on file or those planning to retire during this window need not postpone their retirement in order to be eligible for this benefit if the legislation does become law.
You can follow this bill, or any other bill, at the General Assembly’s website on Joint Bill Tracking. If HB 1583 becomes law, eligible members will be informed so they can make appropriate decisions. Missouri Consolidated Health Care Plan administers medical benefits and should be contacted with any questions related to medical insurance. Print Friendly and PDF