Facts about retiree settlement checks

Oct 11, 2012 by

 

Please note that your settlement check envelope, which should be arriving any minute, looks EXACTLY like your pension check stub envelope.  DON’T THROW IT AWAY – there’s a check inside!

 

Also, contrary to what we had been told, Lee did NOT mail out two separate checks; taxable and nontaxable amounts were combined in one check.  There is, however, a breakdown on the stub that denotes the amount that was taxed and non-taxed.

 

Finally, as discussed at the retiree meetings, the portion of your settlement that is NOT reimbursement for medical expenses, is treated as payroll earnings for tax withholding purposes.   The company is legally obligated to withhold these taxes from any portion that is not a reimbursement.

 

We hope this information is helpful.

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