Posted on 01/09/2006 9:13:57 AM PST by churchillbuff
Twenty-seven states with an income tax exempt Social Security benefits from taxation....
In Massachusetts public employees collect retirement at a rate of 80 percent of the average of their highest three paid years. The ordinary dreaded private sector worker gets social security benefits in the order of about twenty percent or less of their highest earnings.
Once again public workers show their selfish interest all the while claiming they did their work for the good of others. Public worker pension systems are nothing like social security. My social security payments are used to fund disability programs for alcoholics, drug users, fake injuries, and so on. Try using public employee pension programs for some of these and then hear the crying from government workers.
How does exempting a large (and no longer productive) chunk of the populace from taxation "sustain the commonwealth's economy?"
Hmmm?
Pat Buchanan had this to say about the Democrats and the Republicans, "they are the two wings of the same bird of prey."
Doesn't Florida exempt retirement wages also ??
Wrong on several counts. All new personnel joining the federal government after 1983 must pay into SS. It is not an option. For those joining prior to that, they had the option to convert to the new system including paying SS taxes in addition to paying into the civil service system.
The amount of retirement is based on number of years service, the average high three years of salary and age. Without going into all of the rules and regulations, someone would have to have 40 years of service to get an 80% pension, which is fully taxable. Minimum retirement age is generally 55 with a minimum of 20 years service. Early retirement before 55 with 20 years service will result in a reduction penalty.
It depends on one's perspective, but those Civil Service employees who retired have their entire pension subject to state taxes in Virginia. Non-government personnel collect their entire SS pension without paying any taxes. Is that fair?
As I indicated earlier, USG retirees must pay taxes on their pensions in VA, but SS non-government retirees don't pay any taxes on their SS peensions. Moreover, if a USG retiree is also eligible for a SS pension, the amount of the SS pension is significantly reduced.
I would also not that USG employees pay into their retirement pay at 7% of their salary. Currently the OASDI rate is 6.2%, but it was much lower 20 or 30 years ago. All Federal employees also pay into Medicare even if they weren't paying into SS.
I would assume that the number of years service figure into that equation and that 80% is some sort of maximum. How much do Mass public employees pay into their retirement scheme?
Once again public workers show their selfish interest all the while claiming they did their work for the good of others. Public worker pension systems are nothing like social security. My social security payments are used to fund disability programs for alcoholics, drug users, fake injuries, and so on. Try using public employee pension programs for some of these and then hear the crying from government workers.
USG employee contributions to their pension funds are treated the same way that SS contributions are. Trust funds are set up filled with IOUs. All of the money is fungible under the unified budget. The trust funds are part of the national debt under intragovernmental holdings. I have no idea how states treat their pension funds, but I would find it hard to believe that the state governments have not found a way to use these pension funds without putting them into some lock box. I guess it depends on the state.
Public employee and union pensions vs social security
As far as I am concerned the government and unions keep the support of their loyal cadre by paying them off just as Stalin finally figured out how to keep a loyal base of communist support. From the government, I get IOU's for the 15 percent FICA taxes which go to fund a pay-as-you-go system of meager pensions for old people and a living wage for disabled, drunks, and druggies
I don't begrudge public and union workers for getting good pensions. But, I don't see why my FICA "pension payments" should be treated as taxes and spent on welfare programs while public and union workers are not. This is an inequity that is morally reprehensible.
If you read what I wrote, you will notice that I differentiated between federal and state government pensions. I am a retired USG employee with 36 years of service. I am not delusional. I know how the federal system is funded and how it works. Obviously you don't.
The federal TSP is voluntary. It is not related to the civil service retirement system, which is funded by the USG. Federal employees pay into SS and the civil service systems and have the option of contributing to the TSP, which has a matching feature by the USG. There is no doubt the USG has one of the best pension schemes in the world.
As far as I am concerned the government and unions keep the support of their loyal cadre by paying them off just as Stalin finally figured out how to keep a loyal base of communist support. From the government, I get IOU's for the 15 percent FICA taxes which go to fund a pay-as-you-go system of meager pensions for old people and a living wage for disabled, drunks, and druggies.
There are advantages and disadvantages to working for the USG. If you think it is so great, you should apply for employment. I favor PAs to replace SS, which is a glorified Ponzi scheme. SS was never intended to be the sole source of support in old age, but rather, a safety net.
I don't begrudge public and union workers for getting good pensions. But, I don't see why my FICA "pension payments" should be treated as taxes and spent on welfare programs while public and union workers are not. This is an inequity that is morally reprehensible.
Again, get your facts straight. Federal employees pay FICA payments just like you do. They also contribute to their own civil service retirement system and those contributions are comingled with the rest of the federal budget and treated similarly to SS funds, i.e., they are in trust funds filled with non-marketable T-bills, i.e., IOUs. State government employee pensions schemes are another kettle of fish.
Alabama has exempted Military and government Retirement from taxation for years. :-)
Do you know the name of that ruling, by any chance?
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