You can choose to receive installment payments on a monthly, quarterly or annual basis.
You can choose to receive installments over any number of years within the range of two to ten. If you want installments over twenty years, take one-half of your account over ten years, then you can apply for a second ten year installment for the remainder of your account.
Taxation of Installment Payments
Money you receive from the SIS Pension Fund is taxable as ordinary income The SIS Pension Plan will withhold 20% against any federal income tax you will own on installment payments paid directly to you. You may owe more tax or less tax on your Lump Sum payment(s) depending on your tax bracket. This gets worked out when you file your quarterly or annual tax filing.
Return to Installment Options
Back to Planning for Retirement