311

PENSION TYPES

Retirement Benefits

Are my pension benefits taxable?

  • For federal tax purposes, there are different rules that apply to the taxability of pensions based upon employee and employer contributions. Neither the Commonwealth of Pennsylvania, nor the County of Allegheny, nor the City of Pittsburgh tax your monthly pension benefit. Due to the complexities of the tax laws, retirees should consult a tax professional.

How long will I receive a pension?

  • Your monthly pension benefits will be paid to you as long as you live.

What is the Social Security Reduction at age 65?

  • The Social Security Reduction at age 65 is applicable to all members hired after December 31, 1974. At age 65, the original pension amount is reduced by 50% of a Social Security benefit calculated using only wages earned during employment with the City. This reduction cannot exceed one half of the original pension amount.

Can I expect an increase to my pension benefits after I retire?

  • From time to time, retirees may receive increases from a Pension Trust Fund and other sources. Since 1987, retirees have received a total of $45.26 additional monthly pension benefits.

How solvent is the Pension Fund? Could I one day lose my benefit?

  • Because the pension benefit is a municipal/governmental pension, the possibility of losing the benefit is remote. The reason for this is that pursuant to law, the pensioner has first claim on tax dollars to satisfy pension benefits.