Understanding the Social Security Earnings Test
Not everyone understands how the Social Security earnings test works and how it may impact your retirement income. Here is an explanation.
Federal employee retirement news: news about retirement-related topics as it pertains to employees of the federal government. Topics include FERS, CSRS, the latest TSP performance, annual COLA updates, and more.
Not everyone understands how the Social Security earnings test works and how it may impact your retirement income. Here is an explanation.
Employees and retirees live in the same environments and are subject to the same increases in the cost of living, but the general, annual raise they get is different. The author outlines sample annual raises for three hypothetical employees.
The COLA percentage amount for both FERS and CSRS was announced on October 19. OPM has issued official guidelines on how to calculate your COLA increase.
Lost in the interest over the 3.6% COLA announced by Social Security (and reported in FedSmith) on Wednesday, October 19th, are several other Social Security changes for 2012.
After two years without any increase in the cost of living adjustment (COLA), there will be an increase of 3.6% for those who receive the full amount of the annual adjustment.
The Social Security Amendments of 1983 included a hefty payroll tax hike that was designed to generate large Social Security surpluses for about 30 years. These surpluses were supposed to be saved and invested in marketable U.S. Treasury bonds, which could later be resold to finance benefits for the baby boomers. The author says this has not happened and points to some examples.
Many FedSmith readers have commented on the excessive time it takes OPM to process the paperwork for full annuity payments. It is likely to get worse instead of better. Here’s why.
Inflation has been very low for the past two years and federal retirees and those receiving Social Security payments have not had an increase. That is likely to change in 2012. Here’s why and how much.
Senator Mike Crapo (R-ID) and Representative Peter Roskam (R-IL) have proposed legislation to permanently cap the dividends and capital gains tax rate at the current 15% level.
On April 20, 1983, one of the most significant developments in the history of Social Security legislation took place with great fanfare. It was the signing ceremony for the Social Security Amendments of 1983, which President Ronald Reagan called landmark legislation. The author says it laid the foundation for what was to become one of the greatest frauds ever perpetrated against Americans by the government.