March 4th is the deadline for Congress and the President to agree on funding for the government. There has been much talk about a shutdown.
I don’t believe a shutdown will happen, but should a shutdown occur, I believe your Annuity payments would continue. Essential services will continue even with a shutdown.
Retirees: Now Is the Time to Fight Back!
On Tuesday, March 8, some 300 NARFE officers and activists are scheduled to descend on Capitol Hill.
Add your voice to theirs. Call your lawmakers on March 8.
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Just follow these steps:
Call 866-220-0044 (toll-free) to reach the U.S. Capitol switchboard and ask for your representative and senators by name or supply your ZIP code.
(See Names and direct phone numbers below. You may contact your representatives both by the switchboard or their direct phone numbers.)
Once connected to your lawmaker’s office, NARFE members should say:
• Federal workers and retirees have already sacrificed pay and benefits.
• Don’t single us out by making more cuts to the retirement and health benefits we earned through years of serving the public.
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Whether you leave a recorded message or speak to a staff person, request that your lawmaker respond in writing to your phone call. For that reason, be sure to leave your mailing address.
Only contact your own representative and two senators. Lawmakers will disregard your message if you are not a voting constituent.
Federal workers and retirees have already sacrificed so much. Don’t let Congress slash the retirement and health benefits you have earned! Pick up your phone on March 8.
Rep. John Mica
202-225-4035
Sen. Marco Rubio
rubio.senate.gov/contact.form.cfm
202-224-3041
Sen. Bill Nelson
billnelson.senate.gov/contact.index.cfm
202-224-5274
All the officers of the NARFE Ormond Chapter 2247 wish to thank the MEMBERS for their support, and in particular those members who attended the February 21 Chapter meeting. The attendance was the highest we have had to date.
I was pleased when we reach 50 members for an attendance. Unofficially I was told we had 62 people sign in with Mary Araya. Plus, two aging members who arrived late and seeing no empty chairs turned and headed for the door. Mary chased them as far as the parking lot, but they were too fast for her. They got away clean.
I have a great deal for you, $89 FOR THREE YEAR’S NARFE dues. Here it comes, if you pay your dues by check or credit card, then continue reading. Also your dues should be up some time this year (2011). You can call 800-456-8410 (Member Records), and pay the $89 by supplying your credit information. Be sure to identify yourself as member of Chapter 2247. Easy right?
If you prefer the postal service, an alternate choice and a very good one, then write on your check “$89 for three years dues”. Mail your check with a note including your Chapter 2247 to:
NARFE National,
606 North Washington St.
Alexandria Virginia 22314-1914
If your expiration date is beyond December 2011, then I might still be able to give you a deal. Call Bob at 441-9250
At least six inquires have come to me within the last two days, some almost
in tears and others in anger. The one thing in common was the question, “why
have my Taxes for 2011 increased?”
The reason is simple. You are lending money to the federal government each
month. The IRS has changed the withholding tables for 2011. This gives the
IRS the Legal right to deduct more money from your monthly annuity payment
each month. You are paying for the tax breaks that have been given to
others.
The solution is contact OPM by calling OPM at 1-888-767-6738, or e-mail
www.opm.gov/retire and request a change in your federal tax being withheld
each month.
However, if you use the net you might want to use the OPM on-line tax
withholding calculator to prevent under paying your tax.
The long explanation for why you have less money in these hard times is as
follows:
By: Dave Snell, Retirement Benefits Service Department
While all of the attention recently was on Congress extending the Bush era
tax cuts – which happened – a lesser known federal tax credit for employees
and retirees that was part of the 2009 Stimulus law was allowed to expire.
The “Making Work Pay” credit expired December 31, 2010, which could mean
higher federal tax withholding amounts in monthly annuities/pensions for
public and private sector retirees, including federal annuitants. The
Internal Revenue Service (IRS) issued a notice in December saying
withholding tables for 2011 would no longer be adjusted for the Making Work
Pay tax credit and there is no longer an optional additional withholding
adjustment for pensions.
The Making Work Pay credit was created with the passage of the American
Recovery and Reinvestment Act, Public Law 111-5, signed into law February
17, 2009 (also known as the Stimulus law). The credit equaled 6.2% of a
taxpayer’s earned income up to a total credit of $400 for individuals and
$800 for joint filers. Last year the IRS asked employers to use the new
withholding tables to adjust workers’ take-home pay to account for the new
credit as soon as possible emphasizing that employees did not have to fill
out a new W-4 withholding form, and that the adjustments would
automatically be made based on the 2010 withholding tables. Those
withholding tables also affected federal retirement payments. With the
expiration of the temporary credit, IRS tax withholding tables have changed
for 2011, and many retirees may see an increase in the amount of federal tax
being withheld from their monthly annuity payments as a result.
It is important to keep in mind that, like all employers, OPM uses tax
withholding tables that are provided by the IRS, and questions about changes
to those tables must be referred to the IRS, not OPM.
As a reminder, federal annuitants receiving payments from OPM can change
their tax withholding amounts for both federal and state taxes by contacting
OPM. Retirees can call OPM at 1-888-767-6738, or make changes using Service
Online at www.opm.gov/retire. We would also suggest retirees use the OPM
on-line tax withholding calculator at the same site before making a change
to their monthly tax withholding to make sure they do not under withhold
which could result in paying out of pocket additional federal tax that may
be due at the end of the year.
NARFE members who are unhappy about the expiration of the Make Work Pay tax
credit should direct their complaints to their own representative and
senators. NARFE is consulting with our coalition partners in the Leadership
Council of Aging Organizations regarding congressional action on this issue.
While retirees’ and survivors’ anger about the expiring tax provisions is
justified, NARFE members need to stay focused on the more critical and
immediate threat of the unprecedented spending cuts Congress is considering,
particularly proposals to reduce the earned retirement, pay and health
benefits of federal employees and annuitants.
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