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Important Reminders
- IRS regulations require that income be reported for tax
purposes in the year it is received. The military retired and annuitant
payrolls are processed in the month of entitlement and are payable the
first business day of the following month.
For example, the retired pay entitlement for December is payable
the first business day of January and, therefore, becomes income for the
new calendar year. Effectively,
income reported for the 2005 calendar year covers the entitlement period
December 2004 through November 2005.
- Please be aware that if your residence address changes to a
different state, retirees must submit a new State Income Tax Withholding
request. The payroll system updates
a Change of Address for mailing purposes only but will continue tax
withholding based on the prior state of residence on record.
- The Social Security Offset (SSO) phase II implementation increases
the minimum annuity payment from 40 percent to 45 percent of the annuity
base amount effective April 1, 2006, payment date May 1, 2006.
- Delta Dental Program: Currently, there are
approximately 400,000 retirees who participate in the Delta Dental
program. The annual increase to the
Delta Dental premium became effective April 1, 2006. Retirees participating in the program
will see a decrease in their net retired pay starting May 1, 2006 equal to
the increase in the premium amount.
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