SOURCE: www.www.narfe.org
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National Active and Retired Federal Employees Association (NARFE) President Joseph A. Beaudoin today urged the House of Representatives to include retired public service employees in H.R. 5987, legislation to be considered this week that would provide a one-time $250 payment to Social Security beneficiaries in lieu of a cost-of-living adjustment (COLA) in 2011.
“It is inequitable for more than one million public service retirees who are not eligible to receive Social Security benefits to be denied relief equivalent to what other older Americans are provided,” said Beaudoin.
These public-sector employees who did not contribute to Social Security instead contributed to a public pension fund that partially operates as their social insurance. While some retired public employees are eligible for Social Security benefits through other Social Security-covered employment or through marriage, many of them remain ineligible for ANY Social Security benefits.
“Like Social Security beneficiaries, federal, state and local government retirees will go without a COLA this year. But unlike Social Security beneficiaries, these public service retirees who are not eligible to receive Social Security will be required for a second year to pay a Medicare Part B premium increase in January and fork over an additional amount to subsidize the cost of protecting most Social Security beneficiaries from the rate hike,” he added.
According to Beaudoin, most Medicare beneficiaries will continue to pay the same $96.40 premium they have paid since 2008. However, public service retirees not eligible for Social Security benefits will pay $115.40 a month in 2011.
By way of precedent, during consideration of the American Recovery and Reinvestment Act of 2009, retired public service employees were initially excluded from a $250 payment to Social Security recipients. But later – with the assistance of Sens. John Kerry, D-MA, and Max Baucus, D-MT, and through NARFE’s efforts – a $250 refundable tax credit for public service retirees was included in the legislation, which became law.
In addition, Sen. Bernard Sanders, I-VT, has introduced S. 3985, to be considered in the Senate this week, that would provide a $250 refundable tax credit for public service retirees. NARFE and several other organizations representing federal, state and local government retirees have endorsed S. 3985.
“We are grateful to Sen. Sanders for adding language to his legislation to ensure that all federal, state and local government retirees would receive help this year to pay for mounting living costs without a COLA,” Beaudoin said. “We urge the Senate to pass S. 3985 this week and implore the House to follow its example.”