1-30-11: PBGC pension, Part A and Part B taxable portion calculations

When DSRA members receive their annual 1099-R from the PBGC for pension payments, the PBGC does NOT provide a breakdown into taxable pension payments and the non-taxable “return of contribution” payments which are related to personal Part B contributions.  Delphi provided that service with the breakdown on the 1099-R, but the PBGC assumed the pension plans the responsibility to split taxable and non-taxable now rests with the retiree.  Failure to calculate the correct non-taxable and taxable portions of pension payments could result in payment of higher taxes than are actually due.
 
DSRA has provides an eblast to members in January each year with guidelines for reporting taxable and non-taxable payments, members should check their email for updated information please.  Members can also obtain this information by This email address is being protected from spambots. You need JavaScript enabled to view it. if needed.
 
Please note that any tax related information is provided for guidance and information to DSRA members who are drawing their pensions from the PBGC.  This is provided in the absence of any direction on this subject from the PBGC.  DSRA cannot provide any additional information or assistance on this subject or on any related personal tax related matters.  All members are advised to contact their tax preparers for specific advice and calculations.  DSRA is neither responsible nor liable for calculations that result from using the information provided.