Pension & Retiree Tax Withholding

If you receive monthly pension payments from the university’s Defined Benefit (DB) Plan or Hybrid Plan, your payments may be subject to federal and state tax withholding. The university cannot provide tax advice. Contact a qualified tax professional if you have questions about how tax laws or withholding requirements may apply to your situation.

Tax Withholding for Pension Payments 

The university reports your pension payments and any taxes withheld on Form 1099-R each year. Tax withholding on pension payments is handled differently from withholding on active employee paychecks. 

Even if you choose not to have federal or state taxes withheld, you are responsible for paying any taxes you owe. The university withholds and reports taxes based on the information you provide but cannot determine your total tax responsibility.

Federal Tax Withholding

You choose how federal tax is withheld from your pension payments by completing a federal tax withholding form. You can update your federal withholding in myHR or contact the HR Service Center to request a new form.

State Tax Withholding

State tax withholding from your pension payments is based on the state where you live. State requirements vary and moving to another state may require you to complete a new tax withholding form. 

If you live in Missouri, review UM Pension Benefits and Missouri State Tax Laws for information about how Missouri tax law may apply to university pension benefits.

Contact the HR Service Center if you:

• Move to another state.
• Want to begin or stop state tax withholding.
• Want to change the amount of state tax withheld.
• Are unsure which state tax withholding form applies to you.

Keep Information Up To Date

When you first begin receiving pension payments, you will be asked to complete federal and state tax withholding forms. You are responsible for keeping your address and tax withholding information up to date with the university.

• If your address changes: Update it in myHR or contact the HR Service Center to request an address change form.
• If you want to change your federal tax withholding: Log in to myHR to make changes or contact the HR Service Center to request and submit a new federal tax withholding form.
• If you move to another state or want to change your current state tax withholding: Contact the HR Service Center to request and submit any new state tax withholding forms that apply.

If you do not keep your address and tax withholding information current, the amount withheld from your pension payments may be inaccurate. This could affect the amount you owe or receive as a refund when you file your taxes.