Friday, September 6, 2013
A different interpretation
Regarding employee contributions to TCP-1 being after-tax dollars: why is that? Correct me if I'm wrong, but I don't think it makes any difference to the retirement system whether the contributions are pre- or post-tax. There must be some law somewhere that forces it to be after-tax money for LLNS, but lets it be before-tax money for UC. Can anybody out there provide an explanation (other than that Bechtel, Mother of All Evil, wants to screw us)? A pointer to the law would be especially nice.
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8 comments:
This distinction you can blame on the IRS. They are from the government, and they are here to help you.
http://www.taxpolicycenter.org/taxtopics/encyclopedia/pensions.cfm
That being said, LLNS should use great caution when taking money - its double what they take.
Not all employees get 200K paychecks or multiple K bonuses.
The after tax TCP-1 confiscation of salaries for the pension is just one of many haircuts. More benefit cuts are hitting retirees in the corporate world as shown by today's WSJ article. How long until the same cuts hit the current retirees of the NNSA labs?
Citing costs, IBM to move retirees off health plan
(Wall Street Journal, Sept 7, 2013)
International Business Machines Corp. plans to move about 110,000 retirees off its company-sponsored health plan and instead give them a payment to buy coverage on a health-insurance exchange, in a sign that even big, well-capitalized employers aren't likely to keep providing the once-common benefits as medical costs continue to rise.
The IBM article talks about those who have reached medi-care age, 65 or older. They will be given an annual amount in a bank account to cover individual costs for medi-care. LLNS already does this.
LLNS already does this. (11:13 AM)
Yes, the for-profit LLCs running the NNSA labs are "ahead of the curve" on benefit reductions and salary capping, are they not?
Time Warner to move U.S. retirees to healthcare exchanges (Reuters - Sept 8, 2013)
Et tu, Time Warner?
Don't worry about it TCP-1'er UC just jacked their employee contributions to 8% so I suspect LLNS should follow UC lead as they have always done so standby for the announcement in 2014. Next will be 9% to 15% just as it was called out during the transition's 1000 questions.
We're already docked about 15% for our post tax contribution (vs. UC pre tax), oh wait, I thought someone actually cared or was being fair.
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