Preparing for Retirement
Required Legal Documents:
- Birth Certificate:
A copy of your birth certificate (or other legal document verifying date
of birth, such as a valid driver's license, baptismal certificate or
passport)
- Spouse's Birth
Certificate: If married, a copy of your spouse’s birth
certificate (or other legal document)
- Marriage
Certificate: If married, a copy of your marriage certificate (A
marriage license is not sufficient)
- Child(ren)'s Birth Certificate(s):
Provide copies of the birth certificates of any children who:
- Are minors
- Are over the age of 18 but under the age of 23, unmarried, going
to school full time, and remain your dependents
- Are disabled, whose disability began before the age of 23
Direct Deposit:
The PSPRS recommends that you receive your
monthly pension by direct deposit. Your first
benefit will be a check and will be sent to you by mail. All subsequent payments will be directly deposited into your checking or
savings account. You will still receive a monthly notice stating
how much money was posted to your account. To set up direct deposit,
please provide the following:
- Deposit Slip: A
deposit slip is required for a checking account
- Transit and Routing
Number: Contact your bank to obtain it’s transit and routing
number.
- Your Bank's Phone Number
Benefit Payments:
Please be aware that your benefit payment
for any given month is payable at the end of that month. For example, a
retiree should expect to receive January's benefit payment on or around
January 31st.
Domestic Relations Orders
Relating to Divorce
Contact the PSPRS office to make sure:
- The language of the DRO is written correctly in order to assure
that PSPRS can execute it properly
- A certified copy of the DRO is on file
Health Insurance
Prior to your retirement, compare the health insurance plan offered by your
employer with that of the Arizona State Retiree Group Insurance Program and
choose the one that is best for you. Although PSPRS does not sponsor a
health insurance program, PSPRS does offer the Retiree Group Insurance Program
to its retirees. Insurance under the PSPRS becomes effective the first
day of the month following termination of employment. For more information
or to request an insurance packet:
- Visit the Insurance
portion of our website
- E-mail
- Call the Benefits Department at 602-255-5575
Federal and State Withholding
The majority of normal retirement benefits are
taxable by the federal government. The state in which the retired member
resides dictates the state tax liability
.
PSPRS can only withhold state taxes for the State of Arizona. Please note the following in deciding how much to withhold:
- If your tax returns are prepared by a professional, that
professional is in the best position to know what your liability will be
- You may change your (federal and Arizona) withholding amount
anytime by contacting the Benefits Department
- The PSPRS office cannot give you advice on what your tax liability
is.
When to Terminate Employment
- Terminate employment as near the end of the month as possible.
Your retirement is
effective the first day of the month following termination of
employment.
- If you are going to receive a large sum of money because of
lump sum payoffs for sick leave, comp time, etc., it is usually better
to terminate within the first 5–6 months of the year versus the
end of the year, as the lump sum could throw the member into a higher
tax bracket.
- Remember to take into consideration the cost of living adjustments
(COLA’s), which are:
- Always effective with the July benefit issued at the end of July
(provided PSPRS is able to fund a COLA)
-
Initially effective for a new retiree when either:
- A retiree or survivor must be age 55 or older on July 1 of the current
year and was receiving benefits on or before July 31 of the previous
year.
- A retiree or survivor is eligible if they were receiving benefits
on or before July 31 of the two previous years regardless of age.
