The District of Columbia Teachers’ Retirement Plan and the District of Columbia Police Officers and Firefighters’ Retirement Plan are classified as 401(a) defined benefit governmental retirement plans under Section 414(d) of the Internal Revenue Code. For plan distributions, annuities, rollovers, refunds, and other financial transactions, your Social Security number acts as the Plan’s account number since individual account numbers are not assigned.
When you receive an annuity from the Plan, a portion of the distribution may be subject to federal income tax. For more details, please refer to the appropriate section for your specific Plan type:
Instructional employees covered under the Washington Teachers’ Union (WTU) collective bargaining agreement and who began participating in the District of Columbia Teachers’ Retirement Plan before September 22, 2000, contributed to the plan with after-tax dollars. Because these contributions were made with after-tax dollars, instructional employees in this category receive a tax exclusion on the annuity payments they receive from the Plan. This tax exclusion acknowledges that taxes were already paid on these contributions, preventing double taxation on their benefit. Beginning September 25, 2000, instructional employees covered under the WTU collective bargaining agreement contributed to the plan with pretax dollars. All or a portion of the pension benefits for employees who contributed to the plan after this date are subject to federal taxes.
Instructional employees covered under the Council of School Officers (CSO) collective bargaining agreement and who began participating in the District of Columbia Teachers’ Retirement Plan before October 10, 2014, contributed to the plan with after-tax dollars. Because these contributions were made with after-tax dollars, instructional employees in this category receive a tax exclusion on the annuity payments they receive from the Plan. Beginning October 13, 2014, instructional employees covered under the CSO collective bargaining agreement contributed to the plan with pretax dollars. All or a portion of the pension benefits for employees who contributed to the plan after this date are subject to federal taxes. To determine the tax exclusion amount, please refer to IRS Publication 575, Pension and Annuity Income, or consult a tax advisor.
Employee contributions made to the District of Columbia Police Officers and Firefighters’ Retirement Plan (the Plan) by police officers are on a post-tax basis. Because these contributions are made with after tax dollars, police officers qualify for a tax exclusion on the annuity payments they receive from the Plan. This tax exclusion acknowledges that taxes were already paid on these contributions, preventing double taxation. However, this does not mean the entire annuity payment is non-taxable. The tax exclusion identifies the portion of the annuity that reflects taxed contributions and excludes that percentage from future taxation. To determine the tax exclusion amount, please refer to IRS Publication 575, Pension and Annuity Income, or consult a tax advisor.
Please note: Annuity payments from the Plan to police officers who retire under 100% disability due to performance in the line of duty are entirely non-taxable. Please refer to IRS Revenue Ruling 85-104 (1985) for more details.
Employee contributions made to the District of Columbia Police Officers and Firefighters’ Retirement Plan (the Plan) by firefighters before July 18, 1999, were on a post-tax basis. Because these contributions were made after tax, these firefighters qualify for a tax exclusion on the annuity payments they receive from the Plan. This tax exclusion acknowledges that taxes were already paid on these contributions, preventing double taxation on their benefit. Beginning July 20, 1999, firefighters contributed to the plan with pretax dollars. All or a portion of the pension benefits for employees who contributed to the plan after this date are subject to federal taxes.
Please note: Annuity payments from the Plan to police officers who retire under 100% disability due to performance in the line of duty are entirely non-taxable. Please refer to IRS Revenue Ruling 85-104 (1985) for more details.