2017 Tax Information and Mailing Schedule for IRS Form 1099R
This year, as usual, your IRS Form 1099R for filing your 2017 taxes will be mailed to you by Northern Trust. Northern is the company that processes the Police and Civilian Employees’ Retirement Systems monthly benefit payments.
Northern has advised us that 1099R’s for both retirement systems will be mailed to all retirees prior to January 31, 2018. While the Retirement System can request a duplicate form, Northern Trust charges the Retirement System for each duplicate 1099R we request. If you do not receive your 1099R by February 9, 2018 please contact the Retirement Office.
For those of you filing taxes in Missouri, below you will find additional information about Missouri’s Public Pension and Social Security Exemptions and Qualified Health Insurance Premiums. For those retired Police plan members who have their health insurance premium deducted from their monthly benefit check, below you will find a link to additional information about the IRS treatment of insurance premiums for retired public safety officers.
If you have any questions, please don’t hesitate to call the Retirement Office at 816 482-8138.
Missouri Public Pension and Social Security Exemption
Retired members of KCPERS that are Missouri tax filers may be eligible to exempt a portion of their pension and/or Social Security income from Missouri income tax. To claim the pension and/or Social Security exemption on 2017 returns, Missouri tax filers will need to file using Form MO-1040, otherwise known as the long form, or Form MO-1040P, short form. If filing on Form MO-1040, you will need to complete the worksheet in Part 3 of Form MO-A and file it along with Form MO-1040. If you were age 62 by December 31, 2017 and received Social Security benefits, you will also want to complete the section for the Social Security exemption in Part 3. If filing on Form MO-1040P, the calculation of the pension and/or Social Security exemption is found on page 2 of that form.
Generally for 2017 tax returns, the pension exemption will be calculated as the amount of your taxable pension, limited to a maximum of $37,089 for each taxpayer, and then reduced by the amount of your nontaxable social security benefits, if any. The amount of your pension exemption may be reduced for married couples with Missouri adjusted gross income above $100,000 or for single taxpayers with Missouri adjusted gross income above $85,000. Your exemption is decreased by the amount your income exceeds the limit.
For more information regarding eligibility please contact the Missouri Department of Revenue at (573) 751-3505 or www.dor.mo.gov, or consult your tax professional.
Qualified Health Insurance Premiums
Missouri also allows a subtraction from federal adjusted gross income for qualified health insurance premiums. On 2017 tax returns, the subtraction is taken on Line 12 of Part 1 of Form MO-A and filed along with Form MO-1040. The Missouri Department of Revenue supplies a worksheet for Line 12 of Form MO-A which can be found in the MO-1040 instruction packet.
IRS Treatment of Insurance Premiums for Retired Public Safety Officers
Military Leave of Absence Statutes and Retirement Board Policy
On August 28, 2015 the new military leave provisions for the
Police Retirement System and Civilian Employees’ Retirement System will become
law. In addition, the Military Leave Policy has been update to implement the
changes in the statutes.
The changes in the statutes provide that a member may
restore creditable service in the Retirement System for a military leave of
absence by paying the amount of member contributions missed during that time. Members
may also choose to not restore creditable service lost due to a period of
military leave. A total of five years of military leave time can be purchased
at the member contribution rate. A member may request a waiver to be granted
creditable service in the Retirement System for the period of military leave
time without having to pay the member contribution rate. The Retirement Board
can waive the payment of member contributions for up to a total of three years (of
the five years) of creditable service for military leaves of absence. A waiver
can only be requested when the member provides orders under Title 10 or Title
32 and provides the appropriate copy of their DD-214 or NGB 23. The
amount of creditable service that has previously been granted to a member by
the Retirement System prior to August 28, 2015 will not change.
In anticipation of the changes to state statutes the
Retirement Board also adopted changes to the Military Leave of Absence Policy.
Attached you will find a copy of the amended policy. As you will see the
Retirement System will continue to follow the provisions of USERRA as it
relates to granting creditable service for military leaves of absence.
One of the biggest changes in the policy is that it will be your
responsibility to contact the Retirement System to request a Military Leave of
Absence worksheet upon your return from military service. The worksheet will
show the dates of unpaid service in the Retirement System. Upon receipt of the
worksheet members will need to complete an Application for Creditable Service
due to Active Duty Military Service and provide the required documentation that
corresponds with the current period of military leave. Members will designate
on the application if they are planning to restore the service by making the
member contributions or if they are requesting a waiver of the member
The worksheet, application form, and required documentation
will be submitted to the Military Leave Review Committee (please see the
attached policy for more information on the Committee) who will make a
recommendation to the Retirement Board based on the application and documentation
submitted by the member. If approval is recommended by the Military Leave
Review Committee and granted by the Retirement Board, staff will notify the
member of the amount of member contributions that are due, if any, and the date
by which the contributions must be paid in full to grant the creditable
If you have any questions about the changes to the Military
Leave statutes or policy, please do not hesitate to contact Sharon Blancett at
482-8830 or me at 482-8157. We are also available to meet with members to
review the application form, required documentation, review process, and USSERA
time limits for completing the application process.
Retirement Board Policy #10 - Military Leave of Absence
Application for Creditable Service Due to Period of Active Duty Military Service
2015 Military Leave Statutes