2016 Tax Information and Mailing Schedule for IRS Form 1099R
This year, as usual, your IRS Form 1099R for filing your 2016 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 February 2, 2017. 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 10, 2017 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 2016 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, 2016 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 3 of that form.
Generally for 2016 tax returns, the pension exemption will be calculated as the amount of your taxable pension, limited to a maximum of $36,976 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 2016 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
Retirement Board Election Results
The balloting for the three year open seat on the Retirement Board concluded on June 20th with the following results:
(Ret.) Sergeant Robert W. (Bob) Jones - 346 votes
(Ret.) Detective Robert Blehm - 210 votes
Detective Chad Pickens - 124 votes
Thanks to all three candidates for your interest in serving the Retirement Systems and thanks to all who voted. Congratulations to (Ret.) Sgt. Jones.
2016 Cost of Living Adjustment
The Retirement Board approved a motion at the April 12 board meeting to provide a 2.0% COLA to the base pension for all members whose retirement or whose deceased spouse’s eligibility to a pension were effective on or before December 31, 2015 as authorized in sections 86.1220 and 86.1590 RSMo. The Pension Systems Manager was instructed to grant this COLA effective with the May 31, 2016 benefit payment for the Police plan retirees and the June 1, 2016 benefit payment for the Civilian Employees’ plan retirees.
Retirement Systems Welcomes New Trustee
On December 8th, Walter E. (Web) Bixby III was sworn in as a new Retirement Board member. Mr. Bixby is the Executive Vice President of Kansas City Life Insurance Company and the President of Old American Insurance Company. City Councilwoman Heather Hall introduced a resolution to the Kansas City Council appointing Mr. Bixby to a two year term on the Board of the Police Retirement System and Civilian Employees' Retirement System of the Police Department of Kansas City. The City Council unanimously approved Mr. Bixby's appointment to the Retirement Board.
Retirement Board Chairman, Major Richard Smith, said Mr. Bixby was the second member of his family to serve on the Retirement Board. Mr. Bixby's grandfather, Walter Bixby, was appointed to the Retirement Board by the City Council in 1960.
Military Leave of Absence Statutes and Retirement Board Policy