Posted on 01/17/2011 5:10:03 PM PST by Libloather
Retirees Shocked By Lower Pension Payments
PERF: Shortage Tied To Expiration Of Tax Cut
UPDATED: 6:19 pm EST January 17, 2011
INDIANAPOLIS -- Thousands of retired state and local government workers were shocked on Friday when they discovered that their monthly pension checks were substantially reduced.
Workers were especially unhappy that they got no advance warning they would be receiving less money, 6News' Norman Cox reported.
The Public Employees Retirement Fund said the shortage happened because one of the tax cuts in the federal stimulus package expired. A notification sent to retirees didn't get to them until after payments had arrived.
**SNIP**
One of the elements in the stimulus package passed under President Barack Obama expired, which raised retirees' federal income tax withholding.
"Basically, the Make Work Pay tax credit that was adopted by the federal government last year expired at the end of the year, and for some folks, that resulted in an increase in the amount of taxes withheld," said Jeff Hutson, PERF spokesman.
Normally, retirees such as Zerbo who have direct deposit don't get monthly statements unless the amount changes. Because it changed this month, a notice was sent, but it arrived late.
(Excerpt) Read more at theindychannel.com ...
Civility.
For most working people, the expiration of the tax break is made up by the cut in the Social Security withholding tax. Because retirees don't pay Social Security, they've lost money because of the expiration.
Ain’t it just grand that there are thousands of little things like that? So easy to keep track of.
We have to pass the bill to find out what is in it.
state and public retirees?
couldn’t happen to a better group of parasites.
Retirees, eh? Something tells me that as a voting block they didn’t come through for the RATs last November so Nancy engaged in a little payback politics. Forgot? I don’t think so.
Up Yours!
this is yet another Dem fiasco.0dumbo thought it was a good idea to reduce the amount of withholding.
BUT all anyone has to do now is change the number of dependents and less will be withheld. No one verifies the number of dependents you put on a W4. NOT to be confused with the actual number you can claim whem you file your taxes.
The tax rate they pay, which has nothing to do with whether they are retired or not but is based on their income did not change under 0dumbo.
All that changed is how much was deducted every pay period. Most idiots don’t realize you should have the least amount deducted you can and pay if you have to April 15
Why give the gov’t money to use all year ?
Do you believe in anarchy? Isn’t some government necessary?
“We have to pass the bill to find out what is in it.”
FK Pelosi et al!
You and my dad would get along well together.
I’m sure I’m old enough to be your dad,, he and I remember when the USA was a great country,, not the sewer it has become.. I pray for you.......
Racist much?
Wow, what an intelligent person you are. Using your logic, anyone looking at you could assume that all Freepers are idiotic racists & bigots—because after all, you only need to see one to judge an entire group.
Racist,, no,,, affirmative action racist... yes. Black man works as hard as I do,, he/she is equal.. when they are given special treatment due to skin color,, yes I am bias against people give special treatment due to race. They deserve no respect.
It’s racist to have endured the bullshit of affirmative action?
It’s racist to make the statement he made, which no doubt applies to a good number of Freepers, a good number of black political commentators (Sowell, Keyes), and a whole bunch of black professionals who worked their butts off to prove to assholes like Mr. Piper that worth is determined by the content of our character, not by the color of our skin. So, yes, it was an ignorant racist comment that does not belong on this forum and if you don’t agree with me, well then you sir are worse than Hitler.
Of course, if you go back in history far enough,, everyone's ancestors have been slaves,, but only the last 200 yrs matter to liberals.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.