In general, you must contact CPF to request a retirement package at least three months prior to the date you want to retire. Retroactive retirements are not generally permitted.

As part of the retirement process, you will choose a form of payment and, if applicable, designate a beneficiary. You should plan to send your completed retirement application and all required forms to CPF at least four weeks prior to your anticipated retirement date in order for our Client Services group to process your retirement for that date, although there is one application filing exception noted below. If CPF receives your completed paperwork fewer than four weeks in advance, but in any event prior to your anticipated retirement date, then your retirement date will be honored, but payment of your benefit may not commence on time. If CPF receives your completed paperwork on or after your anticipated retirement date, then your retirement date will not be honored, and it will be pushed back to the first of the month following CPF’s receipt of your completed paperwork.

For example: Mary wishes to retire on January 1. She must contact CPF to request a retirement package by no later than October 1. If she contacts CPF on October 4, the earliest that she can retire is February 1. Let’s assume that Mary contacted CPF on or before October 1 to request a retirement package with a January 1 effective date. Mary should plan to send CPF all completed paperwork by December 1 if she wants to receive her first benefit payment by January 1. If CPF receives her completed paperwork between December 2 and 31, Mary’s first payment may not be made until February 1, but she will receive a retroactive payment for her January benefit. If CPF receives her completed paperwork on January 3, then her January 1 retirement date will not be honored, and her retirement date will be pushed back to February 1.

Application Filing Exception: CPF recommends that you file a retirement application to ensure that you select the payment option that meets your needs. However, CPF will automatically begin your retirement benefit payments even if you do not complete a retirement application if you have reached your IRS required beginning date. In this case, if CPF does not receive a completed retirement package on time, your retirement benefit will be based on the normal form of payment and your marital status in CPF’s records at that time. If you want to choose your form of payment and/or designate a beneficiary, we encourage you to contact our Client Services group at least three full calendar months before your IRS required beginning date.

Receiving Your Retirement Benefit Payments

CPF strongly encourages you to have all retirement benefit payments sent directly to your bank by electronic transfer. Using this method allows CPF to transmit retirement benefit payments directly to your bank account, which helps to ensure that they arrive safely and are deposited on time. All you need to do is complete a Direct Deposit Authorization Form. Once the banking relationship is established, there is no need for further maintenance, unless your banking information changes.

Taxes on Retirement Benefits

Benefits paid from the plan are subject to federal income tax and possibly state and/or local income taxes.

• If you receive a lump sum payment or any other payment that is eligible for rollover to another eligible retirement plan or an individual retirement account (IRA), no tax will be withheld if the payment is directly rolled over to that other plan or IRA. However, if the payment is not directly rolled over, 20% of the payment will be withheld for federal income tax (unless you elect a higher withholding percentage). Mandatory state income tax withholding also may apply, depending on where you reside.
• At retirement, you will receive federal and state income tax withholding forms to complete and return to CPF.
• Every January, retired members will receive a tax form that reports the distributions from the plan during the previous calendar year.
• You should consult your tax advisor before making any federal, state, and/or local income tax withholding elections.