- April 8, 2026
- Posted by: Aja Jackson
- Category: Newsletter
What Retired Members Need to Know
Beginning in 2026, the federal government is requiring all retirement systems to use an updated version of the Form W-4P: Withholding Certificate for Periodic Pension or Annuity Payments. This new form is more detailed than the previous version and is designed to help ensure that the correct amount of federal income tax is withheld from your pension payments.
What Is Changing?
The Internal Revenue Service (IRS) has redesigned the W-4P form to better align with current tax laws and provide more accurate withholding based on your individual financial situation.
As a result:
- ERS will no longer be able to accept the previous W-4P form.
- A new 2026 W-4P form will be required for certain members.
- ERS has created a coversheet to accompany the form and collect important contact and identification information.
Who Does This Apply To?
The new W-4P form and ERS coversheet will be required for:
- New retirees
- New beneficiaries (such as those receiving benefits after the death of a member)
- Current retirees or beneficiaries making changes to their federal tax withholding
These requirements will go into effect with the June 1, 2026 payroll cycle. If you are a current retiree and do not wish to make any changes, you do not need to take action at this time.
What Do I Need to Do?
If you are required to complete the new form, you will need to:
- Complete the 2026 Federal W-4P Withholding Certificate and the ERS coversheet.
- Submit both forms to ERS by mail, email, or fax.
- Maryland residents who are new retirees or beneficiaries will also need to complete the Maryland State Tax Withholding Certificate.
Important Things to Keep in Mind
- Updates to your withholding may take at least 30 days to take effect.
- Your current withholding will remain in place until a new form is submitted and processed.
- If no valid form is on file when required, withholding may default to a standard rate.
Do I Need Help Completing the Form?
ERS staff can help explain the process, but we encourage you to consult a:
- Tax advisor
- Financial advisor
- Certified Public Accountant (CPA)
- Or the IRS directly for tax-specific guidance
We’re Here to Support You
We understand that changes to tax forms can feel complicated, but this update is designed to give you greater control and accuracy when it comes to your retirement income.
If you have questions about whether you need to complete a new form or how to submit it, please contact ERS:
- 443-984-9200
- contacters@bcers.org
