UW Retirement Association

April 15, 2020

Legislative Actions Affecting Retirees

Several recent actions at all levels of government may affect UW retirees:

  • The federal income tax deadline is now July 15, 2020.
  • The King County property tax deadline was extended to June 1, 2020, for residential and commercial taxpayers who pay the taxes themselves rather than through mortgage lenders.
  • House Bill 1390, authorizing a cost of living allowance (COLA) for Plan 1 retirees, passed the legislature. The COLA goes into effect on July 1, 2020, and provides a one-time 3% increase for PERS1/TRS1 retirees, up to a maximum increase of $62.50/month.
  • Senate Bill 6087/House Bill 2662 cap out-of-pocket insulin expenses at $100 per month.
  • The $2 trillion federal stimulus package contains funding for one-time checks to Americans. Eligibility and the amount of the check are based on the Adjusted Gross Income (AGI) reported on federal income taxes. The AGI reported on 2019 taxes is used if those taxes have been filed. If 2019 taxes have not been filed, 2018 taxes will be used. For a single person, the payment is $1,200 for those with an AGI of $75,000 or less, with reduced payments for AGIs between $75,000 and $99,000. For married couples, payment is $2,400 ($1,200 per person) for those with an AGI below $150,000, with reduced payments for AGIs between $150,000 and $198,000. There are no payments for singles earning more than $99,000 or couples earning more than $198,000.

Checks are scheduled to go out within a month, with first payment to those who have established direct deposit with the IRS. Paper checks will be mailed later.

The regulations speak to AGI without regard to what type of income is included. Therefore, income from social security, pensions, capital gains and regular wages all count in determining AGI, and retirees do qualify for the stimulus check if their AGIs are within the specified limits.