Retiree FAQs - Taxes

Important note: Information contained in these frequently-asked questions and answers is general in nature. In case of any conflict, the actual contract language between the employing municipality and PMRS along with PMRS law will prevail. Also, existing regulations, policies and procedures will apply in all cases.


Must I pay federal, state and local taxes on the retirement benefits I receive?

Retirement benefits are subject to federal income taxes; however, retirement benefits are not subject to Pennsylvania state and local taxes.

By law, PMRS must calculate federal tax withholding from your monthly benefit, assuming that you are married with three allowances.  You may direct PMRS to withhold at a different rate by completing a W-4P form and sending it to our office.

Will I get a statement from PMRS every year for tax purposes?

PMRS mails 1099-R forms to individuals by January 31 for use in filing a federal tax return.