CTPF pension payments are made in advance at the beginning of each month. When a payment date falls on a holiday or weekend, payments are made on the first business day of the month.
Double Payments/Tax Issues
The pension payment calendar is published in advance for the entire year to help members understand when to expect their checks or direct deposit. CTPF cannot make payments on the last business day when the 1st falls on a holiday, as the practice may cause tax issues for members.
“A good example of this is our January 1 payment, which can be made as late as January 3, depending on when the holiday falls,” explains Alise White, CFO. “If CTPF paid the January 1st payment on December 29th this year, a member would have seen their taxable income increase for 2022, with payments on December 1st and another December 29th. Checks mailed on December 29 are dated January 3, and cannot be deposited in advance. We hope that by publishing the schedule in advance, and providing payment on the first of the month in advance instead of holding until the end of the month, gives our members the information they need to plan for their needs.”