Archive for January, 2012
Exactly how is your retirement income taxed for federal income tax purposes? The author breaks it down piece by piece.
The Congressional Budget Office has released a study comparing pay and benefits of federal workers to workers in the private sector across wages, benefits and total compensation (wages plus benefits). On average, federal employees came out ahead in each case.
In a very recent case before the DC Circuit, the court slammed the Federal Labor Relations Authority again for interpreting law other than its own. In what appears a sweeping decision that may reverse the effect of many years of FLRA Negotiability determinations, the Court found that absent specific appropriations language, an Agency would violate the legal prohibition against use of appropriated funds for employees’ personal expenses. Pay attention to this decision.
In Kennington v. Merit Systems Protection Board, CAFC No. 2011-3192 (nonprecedential), 12/13/11, the court recounts what many would view as odd behavior, including claims from the employee that he “previously worked as a psychic” and “could communicate with angels, God, and Jesus.”
The author illustrates a hypothetical scenario of two FERS employees with identical salary histories to show the dramatic impact the recently proposed pension reduction bill, as currently written, would have on future federal retirees.
Rep. Dennis Ross (R-FL) has introduced legislation that would increase the amount federal employees would be required to pay towards their retirement plans and eliminate the FERS annuity supplement after 2012.
17 Democrats in Congress sent a letter urging the conference committee considering legislation to extend the payroll tax cut through 2012 to oppose any additional cuts to the pay or benefits of Federal employees as part of the deal.
Congressman Jason Chaffetz (R-UT) expressed his disappointment in a recent statement about the 3% increase in the amount of tax delinquent debt incurred by federal employees and reiterated the need to pass his proposed legislation that would terminate federal employees with serious delinquent tax debt.
Readers have been complaining about how long it takes OPM to process their retirement applications. In a “back to the future” moment, OPM has announced a new effort to get rid of the backlog. How? By hiring more people and creating higher production standards.