TO BE OR NOT
There are leaders and I guess, some followers, who believe that actively seeking fairness and balance in our retirement benefits are bound to make government upset at us. We, 1 guess, are taking a road less traveled to address that imbalance!
We identified a series of discrepancies that cry out for attention.
- Connecticut and four other states pay income tax twice on their benefits. Once, while working we paid tax on our income and now pay it again when a major portion of our retirement check is mailed to us. We acquired the tax position of the forty-five states that do not pay Pike.
- We have spent thousands of dollars putting forth a health cost reduction for those who pay a group rate for their benefit. Greenwich retired educators group rate went from $9,000 to S10,800/year. Yes, a $150 increase per month.
- We have written and it is pan of our plan to seek the $60,000,000 our State borrowed from our health fund to pay their contribution for two years.
- It is unconscionable that the approximate 1,500 retirees without Medicare have to pay the group rate and with their increases. We have suggested that the State put them in their plan and we assist in the payment of that premium by thousands of dollars.
- We believe that the State should recognize that insurance costs have risen substantially through the years and then do something about it. Since the 1980's the States contribution for most of our group rate paying retirees have only contributed $36.70 per month and that is $440.40 per year. Use your cost against their number and see the insignificance of that amount.
- There must be a built increase to protect our retired staff so as costs go up a balance is maintained.
- Develop a plan over the next two years to provide equity.
All Alone?
Have you read that other retired teachers groups in Connecticut are pursuing plans to address these issues? The Southern Fairfield County Retired Teachers Association is and we need your help. JOIN NOW!!!
Our Association has already more than a thousand members enrolled in four months!
COST OF LIVING BENEFIT
This is a special benefit for those of us who retired after July 1, 1992. Our COLA should be returned to us, not based on Social Security but on the cost increases in our area. The money should come from our pension fund.
HELP US HELP YOU
You have worked hard a aid long, contributed to your pension and in some cases, paid into the Social Security system. Now to insure all your support benefits we need your input, financially and physically. Join us, support yourselves and write to your legislators.
Teachers' Pensions and Income Taxation
The subject of the relationship of our teachers' pension benefits generates more questions with each answer. Wanting to work with unbiased information, we turned to the NCS1.1 the National Conference of State Legislatures. They provided a Tax Year 2010 report on the tax treatment of all governmental pensions by all fifty states. As you remember, while you were employees of a Fairfield County city government, you where for many reasons considered a state employee. Pension benefits are one of those services provided by the state.
As one can imagine, there is a wide range of state approaches to the question of tax exclusions for state benefits. Seven states have no state income tax obligations. Ten states offer full exclusion from state tax liability. Unfortunately, Connecticut is in a group of states which offer no exclusions.
No exclusions could expose participant contributions to Connecticut's plan to double state and federal taxation of these contributions. While the State assures us we have no such problem at this time, we will continue our search into the records to confirm the state's position or to come up with the necessary documentation to correct any past errors. We will keep you posted on our progress to our goal to answer any concerns you may have.