One City One Hire is an innovative economic development strategy that serves as a catalyst to jump-start the Mayor's pledge to put all unemployed District residents--in every Ward of the city--back to work.
Taxability of Retired District of Columbia Teacher Annuity Payments
Contributions made to the District of Columbia Teachers’ Retirement Plan (the “Plan”) by teachers are either on a post-tax or pre-tax basis. For teachers whose contributions are made after tax, these teachers qualify to receive tax exclusion on the pension benefit they receive from the Plan as calculated under the IRS Simplified Method. This tax exclusion recognizes that these teachers previously paid taxes on their contributions and avoids their being taxed twice. This does not mean that the entire annuity payment is non-taxable. The tax exclusion identifies the portion of the total value of the benefit that reflects taxed contributions and excludes that percentage from future taxation. To determine the amount of the tax exclusion, please refer to IRS Publication 575 Pension and Annuity Income 575 Pension and Annuity Income or consult with a tax advisor.