In accordance with IRS Publication 590, “Individual Retirement Arrangements (IRAs),” and Instructions for Form W-2, the Retirement Plan checkbox in Box 13 of the Form W-2 must be checked for all employees who are eligible for a retirement plan, including those who do not participate.
All employment positions in New York State government offer retirement system membership. Therefore most employees filling these positions are eligible to participate in a retirement program and the Retirement Plan checkbox on the employee’s W-2 should be checked.
However, the exception is New York State employees who earned wages in 2008 and also received a public pension from a position for which the individual retired prior to 2008. These employees cannot contribute to a public pension program. The Retirement Plan checkbox on these employees’ W-2 should not be checked.
PayServ does not contain information for all public pensions (i.e. local government) so OSC is unable to identify these affected employees. Agency action is required to identify these employees.