The federal government and the State of California (for residents only) require that LAFPP withhold taxes unless the pensioner or other payees file an election to have no taxes withheld.
Per IRS requirements, if a completed form is not on file with our office, taxes equivalent to a married individual with three withholding allowances will be deducted from your pension check
You may change your withholding elections at any time online using the Northern Trust Benefit Payment Participant (BPP) Web Passport or by completing a new Income Tax Withholding Form .
BPP Web Passport
Northern Trust, our benefit payment administrator, offers online access to update your tax withholding elections for the federal government and for any state of residence - not just California. To do this, log in to BPP Web Passport and click on the "Tax Elections" link from the "My Information" tab. After making your elections, click "Save" and your
changes could take effect as early as your next pension payment - see the Pension Payment Schedule for a list of deadlines. If you choose this option to update your withholding elections, you do not have to submit an Income Tax Withholding Form to LAFPP.
Income Tax Withholding Form
If you prefer to mail your tax withholding elections, you may submit a completed
Income Tax Withholding Form to the Retirement Services Section. This form allows you to update your tax withholding elections for the federal government and the state of California only. (If you want to withhold for any other state of residence, you must log in to BPP Web Passport. ) Follow the instructions on the form to ensure that your information is accurate. Due to stringent deadlines, your form may not be processed until the month following receipt.
Things to Consider
Tax Withholding for Foreign Residents