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LCG Update

The following was submitted by NHREA Treasurer Marcia Walenta:

Many school districts across the state have returned overpaid funds to retirees.  There are a few dragging their feet, and, incidentally, collecting interest on your money.  If you are in such a district, then call the business manager or the HR person and put pressure on them.  These monies were returned to the districts in August.  No excuses.

It has come to my attention that Keene is asking its retirees to fill out a W9.  This form is to take out taxes.  My recommendation is that you do not sign this form.  You have already paid taxes on this money.  It is a refund, not a COLA or bonus.  When the Retirement System issues your monthly check, it first deducts taxes and then it takes out deductions for insurance.  Thus you have already paid the taxes on this money.  Call your district and tell them this.  If they do not agree then tell them to call the NH Retirement Board for clarification.  I spoke with my tax person and an IRS employee and you should not be taxed on a refund.   You simply overpaid the bill and the LGC, through your district, is refunding the money -- period.

Any problems or questions please feel free to contact me at mwalenta@myfairpoint.net