Due to the pension changes that became effective 4-01-2019, the amount withheld at retirement for Tier 2 members should be reduced to 5% from 10%. The question that should be asked; is the 10% withheld at retirement excessive? The answer is yes simply due to the lower cost of the pension options. As many are aware, the FD & PD Pension Funds currently withhold 10% of the gross pension until the retiree’s pension is finalized. Due to the extended period of time (years) that it often takes to finalize the pension, it would be even better if this was simply optional. In other words, allow the retiring member to select a percentage to be withheld or no percentage at all.
https://www.thomanntax.com/wp-content/uploads/2017/07/logo1.png 79 77 Peter Thomann, EA, CFP®, CDFA® http://www.thomanntax.com/wp-content/uploads/2017/07/logo.png Peter Thomann, EA, CFP®, CDFA®2019-04-23 21:58:462019-04-23 22:12:48FD-PD: 10% Should Be 5%