Some members may receive more than one 1099-R tax form in a year. Here are some of the possible reasons:

• You exited DROP and received the proceeds of your DROP account via a rollover, a lump-sum cash distribution, and received at least one monthly pension check in the same year. In this case you would receive a total of three 1099-Rs. One 1099-R for the DROP rollover (Distribution Code G), one 1099-R for the DROP lump-sum (Distribution Code 1, 2 or 7), and one 1099-R for monthly pension payments (also Distribution Code 1, 2 or 7).
• You have a non-tax dependent covered on your LAFPP-subsidized health insurance plan (e.g., domestic partner or child of a domestic partner). This 1099-R would have a Distribution Code 9.
• Your IRS tax distribution code changed during the year (i.e., when member attains age 59 ½ by June of the same year). You would receive two 1099-Rs, one for when you were under 59.5 years old (Distribution Code 2) and another for when you were over 59.5 years old (Distribution Code 7).
• You received pension payments based on your City service and from a qualified domestic relations order (QDRO) (Distribution Code 2 or 7) or as a beneficiary (Distribution Code 4).

Reminder: if you were an active employee at any time during 2023, you will also receive a W-2 tax form from the City of Los Angeles.

You should be comparing the total in your pension statement to box 1 of your 1099-R. Box 1 reflects the income received in tax year 2023. Box 2a is the taxable portion of your income received. Some or all of your income may not have been taxable, which is why box 1 and box 2a may be different. Box 2a may not be equal to the total amount in your pension statement, because you may have:

• Received more than one 1099-R form (to cover various benefits)
• Made post-tax contributions as an Active employee and therefore a portion of your pension is non-taxable (“basis recovery”)
• Had a Workers’ Compensation deduction (which reduces your taxable amount)
• A non-taxable pension