If you receive Variable Benefit (VB) Payments from CSS Pension Plan, your 2023 VB Payments may have changed. This article provides some context as to why VB Payments can change in any given year.
You may have set up your VB Payments to be paid to you at the "minimum" or "maximum" amount. When you receive the minimum or maximum amount, each year a new amount is calculated based on pension and tax law. You can read more about how the math for those calculations works here.
Many members who are set up to receive the minimum or maximum amounts will have seen a reduction in their 2023 payment amount. The most significant factor in the calculation is your starting account balance for the year. The amount you withdrew in 2022 and the investment markets impact your 2023 starting balance.
I'm set up to receive the maximum VB Payment amount from my locked-in funds, plus I also hold non-locked-in funds in my CSS Pension Plan accounts. In 2023, my new monthly payment is lower than my 2022 monthly payment. Can I increase my payment?You cannot take more from your locked-in funds; however, you may be able to take some funds from your non-locked-in account. We encourage you to contact a CSS Retirement and Pension Advisor to further discuss your retirement income planning needs.
I'm set up to receive the minimum VB Payment amount from my locked-in funds. In 2023, my new monthly payment is lower than my 2022 monthly payment. Can I increase my payment?Yes. If you are set up to receive the minimum VB Payment amount from your locked-in funds, there will be options available to you to increase your VB payments up to the maximum allowable amount under pension law.
If you are set up to receive a specified amount (e.g., $300/month), then unless you run into the minimum or maximum rules, your specified amount will continue until you direct otherwise (or until your balance no longer supports the withdrawal).
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