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  1. #1
    Join Date
    Sep 2019
    Posts
    4

    Default How Does Calpers Calculate Idr

    Hi,

    My department offered me industrial disability retirement and I took it. I know itís different from medical retirement from calpers. I have been told itís 50% highest salary or 36 months which ever is the highest.

    Do they just go by your tax return wage, tips, box and 50% from it?

    Some officers told me it comes out to more like 60% of your earning since itís tax free.

    Thank you,

  2. #2
    Join Date
    Oct 1971
    Posts
    5,184

    Default Re: How Does Calpers Calculate Idr

    Some officers told me it comes out to more like 60% of your earning since it’s tax free.
    That's wrong, you better wait until you consult your lawyer if you want specific info about your benefits.

    Service & Disability Retirement
    Tax Withholding
    Unless you submit an election for tax withholding, CalPERS is required to withhold taxes from your monthly allowance based on the tax tables for a married person with three allowances.
    By law, all CalPERS retirees with taxable allowances are required to select one of the three withholding choices:
    A specific dollar amount withheld (state withholding only)
    No taxes withheld
    Taxes withheld according to the tax tables, based on marital or head of household status and numbers of allowances (you may also add a specific dollar amount to this election)
    If you choose one of the tax tables, taxes will not be withheld unless your gross allowance exceeds the minimum amount listed on the tax table for your filing status (e.g., single, married, number of dependents, etc.). You may change your tax withholding election at any time by submitting a Tax Withholding Election (PDF) form.
    https://www.calpers.ca.gov/page/acti...ity-retirement

    Tony
    Moderator Responses are based on my personal bias, experience and research - They do not represent the views of the admin nor may be accepted in the legal community, always consult an attorney.

  3. #3
    Join Date
    Dec 2020
    Posts
    1

    Default Re: How Does Calpers Calculate Idr

    IDR ( Industrial Disability Retirement) is tax free. Disability retirement is taxed

  4. #4
    Join Date
    Oct 1971
    Posts
    5,184

    Default Re: How Does Calpers Calculate Idr

    Quote Quoting Waitingandwaiting View Post
    IDR ( Industrial Disability Retirement) is tax free. Disability retirement is taxed
    When posting statements of fact you need to supply the source for your information.

    That's true if you collect the minimum IDR which is 50% of your regular monthly salary.
    If you are eligible for more than the 50% minimum that would be taxable - only the first 50% is non-taxable.

    Industrial Disability Retirement
    The primary benefit of IDR is the first 50% of monthly gross earnings is non-taxable; in another words, the first 50% of your retirement is non-taxable.
    Example: If you are less than retirement age, your IDR would be 50% of your regular monthly salary. If you are eligible for service retirement, your IDR would be a minimum of 50%, but if you are eligible for more than 50%, i.e. 60% or 75%, you will receive that percentage, and the first 50% would be non-taxable. i.e. if you qualified for 75%, 50% would be non-taxable, 25% would be taxable.)
    http://www.wellswellslaw.com/index.c...0consideration.

    See pg.63 in the below.

    TA X E S A N D Y O U R D I S A B I L I T Y R E T I R E M E N T
    General Information
    The subject of taxes can be confusing and perhaps a little intimidating. The
    following information is designed to help you understand and calculate the tax
    responsibilities of your CalPERS disability retirement allowance or in the case
    of industrial disability retirement where it has been determined your benefi ts
    are not totally excluded from taxation.

    As a CalPERS retiree, you may still have to pay both federal and state income
    taxes. Just like in your working years, you must fi ll out a tax withholding form.
    While CalPERS can provide you with information on some tax laws you
    need to be aware of, you should request additional information regarding the
    taxability of your retirement allowance from the Internal Revenue Service,
    California State Franchise Tax Board, or from your tax advisor.

    https://www.ci.azusa.ca.us/DocumentC...ionApplication

    Tony
    Moderator Responses are based on my personal bias, experience and research - They do not represent the views of the admin nor may be accepted in the legal community, always consult an attorney.

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