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Government Retirement: Democrats have obliquely admitted they covet Americans' pensions. Last week, congressional Republicans told them to stay away. The shame is that they had to do anything at all.
The two links you post discuss the potential for converting some retirement accounts to annuities. Not even close to what IBD claims. This is the reason I dumped IBD as a news source - waaay too much political BS slopping over from editorial into the news pages. Even the WSJ has better balance and their editorial board is nuts.
Last edited by PNW-type-gal; 05-12-2010 at 06:55 PM..
Government Retirement: Democrats have obliquely admitted they covet Americans' pensions. Last week, congressional Republicans told them to stay away. The shame is that they had to do anything at all.
The two links you post discuss the potential for converting some retirement accounts to annuities. Not even close to what IBD claims. This is the reason I dumped IBD as a news source - waaay too much political BS slopping over from editorial into the news pages. Even the WSJ has better balance and their editorial board is nuts.
You got it and where does the Business Week article talk about taxing?
In reading the Investor Business Daily article, I don't see the tax grab issue. It seems to me the discussion had to do with potentially making a savings vehicle available for all to use.
In the Federal Government today, workers can put money in an IRA type of account, with the employer matching the first 5% of the employee contribution.
In the Federal Government today, workers can put money in an IRA type of account, with the employer matching the first 5% of the employee contribution.
It's actually a 401(k) type of account, not an IRA.
The employer opens it automatically for the employee and puts in the equivalent of 1% of the employee's salary whether the employee puts in anything or not. If the employee chooses to participate, then the government matches it dollar-for-dollar up to 3% of salary. IOW, if the employee puts in 3%, then the government contribution is 4%, for a total 7% contribution.
If the employee puts in any more, then the government matches 50 cents on the dollar up to 5% of salary. So that if the employee puts in a total of 5%, the government contribution is 5% (4% match & 1% automatic contribution).
The employee can, of course, contribute more (up to the IRS limit), but there is no further government contribution.
One further clarification, the government contributions to an employee's 401(k) account applies to those employees covered by the Federal Employees Retirement System (FERS), but does not apply to employees covered by the old Civil Service Retirement System (CSRS). CSRS however, has a much more generous defined benefit pension plan than FERS does.
On a somewhat related matter, FERS employees are covered by SS, whereas CSRS employees are not. (Although both are covered by Medicare.)
I was having lunch with a friend who is going to retire soon and she mentioned the windfall tax....since Pelosi is now in power and she was backing this from what I understand, is this now a strong possibility?
well she isn't living in America today ! shes in San Fransisco!!!!!!
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