If you’ve recently moved outside of Arizona – or have been thinking about it – there’s some important information you should know regarding your pension and benefits provided by the ASRS.
State Tax Implications
If you’re not living in Arizona, you don’t want to keep paying Arizona state taxes. Just because you changed your mailing address doesn’t mean the tax withholding stops – you have to stop that on your own in your myASRS account. Also, the ASRS cannot withhold taxes for other states, so you’ll need to contact the state tax authority in your new state to see if your pension is taxable there.
Medical & Dental Insurance
While both dental carriers available through the ASRS – Delta Dental and Cigna Dental – have U.S. coverage outside of Arizona, there are exceptions, and you’ll want to research whether or not there is in-network coverage in the area you plan to move.
For medical insurance, UnitedHealthcare has both Medicare and non-Medicare plans with coverage for those not living in Arizona: for Medicare retirees, it’s the Medicare Advantage PPO plan. Make sure to look up which plan you’re enrolled in, and remember that any time you’re thinking of changing plans, compare benefits and research network availability in the area you plan to move. For non-Medicare retirees, all plans have nationwide in-network coverage and will not be affected when moving outside of Arizona.
Also, if you’re moving out of state and you wish to make changes to your medical and/or dental coverage outside of our annual November open enrollment period, a change in primary residence can be a Qualifying Life Event if the change in your place of residence affects your current coverage through the ASRS. For more information about Qualifying Life Events, visit the Healthcare page of the Retiree section of AzASRS.gov and look for the link titled “Click here to check if you have a Qualifying Life Event.”
Moving outside of the United States?
If you’ve decided to move out of the country, keep in mind that the ASRS cannot make direct deposits to foreign banks – pension benefits must be deposited to a U.S. bank or financial institution.
As for taxes, if you’re a U.S. citizen living outside the United States, your worldwide income is subject to U.S. income tax, regardless of where you live. However, you may qualify for certain foreign-earned income exclusions and/or foreign income tax credits. For more information, visit IRS.gov and search “international taxpayer.” (Don’t forget - if you ever decide to permanently move back to the U.S., please notify the ASRS upon your return!)
Also, ASRS medical and dental insurance plans are U.S.-based plans, and coverage for services outside of the U.S. are generally not covered (limited emergency services only).
Update your myASRS Account
Whether you’re moving out of the state, country, or just across the street – remember to update your address with the ASRS by logging into your myASRS account at AzASRS.gov. Your pension will keep coming every month, but we may need to send you information by mail, email, or reach you by phone. It’s important to keep all your contact information up-to-date with the ASRS so we can keep you informed of changes. We may also need to use it to verify your identity, should you contact us in the future.
For any additional information, make sure to visit the Retiree section of AzASRS.gov!
by Nathaniel Brengle, Strategic Communications
