| USSVI Veterans News
Posting Date: 08 January 2006 From: John Dudas 2005 Retirement Tax Statements Retired and annuitant account statements and 1099-R tax statements will be mailed throughout the latter half of December. DFAS officials remind pay recipients that the account statement and tax form will be mailed in the same envelope. While the exact mailing schedule is unknown, DFAS will provide completed statements and forms to the printing and mailing contractor by December 14, 2005, for incremental mailings. For retirees, the RAS will reflect changes due to the cost-of-living increase, the Veterans Administration (VA) Legislative increase and changes to the Federal Income Tax Withholding rates. Due to the VA legislative increase, recipients of Combat Related Special Compensation (CRSC) will also receive an increase to their CRSC amount. This amount will affect the December 2005 entitlement scheduled for the payment on Jan. 3, 2006. Retirees who do not have a myPay account will not receive a CRSC pay statement. Also, during December, retired members entitled to receive either CRSC or Concurrent Retirement and Disability Pay (CRDP) will be provided with an election form as part of the annual open season. During the open season, affected retirees will have the opportunity to elect to receive either CRDP or CRSC for the next year. In order for the entitlement to change, the form must be received and processed by Jan. 31, 2006. Based on the election, the change will take effect on the payment dated Feb.1, 2006. In addition, as a result of the phased in CRDP, the amount retirees will receive for CRDP will increase effective January 2006 and will be reflected in the payment dated Feb.1, 2006. The Annuitant Account Statement will reflect changes due to the cost-of-living increase, changes to the VA Dependency and Indemnity Compensation (DIC) amounts and changes to Federal Income Tax Withholding rates. |