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The next Iowa Retirees meeting will be held at the DMI APWU Union hall 1200 E Euclid Ave, Des Moines in May, 2008. 

RETIREE’S CORNER

I recently attended the APWU Retiree’s Conference in Las Vegas. As with many APWU conferences this one started out with controversy, conflict and confusion. But this one had an added new item as past President Bill Clinton addressed all of the delegates at the conference. While I did not agree with everything President Clinton did in office such as NAFTA, he did pass the Family Medical Leave Act, the economy was much better than it is now, no wars, and we did not have the trillion dollar deficit we now have. He did address the need for change and the support for projects that we started and seem to be leaving behind. I’m sure Lance will cover the speech elsewhere in this paper.

At the Conference the controversy that led to conflict started when "someone" (wonder who) invited the 5 regional elected retiree delegates to the conference on National expense. The invite came from Secretary-Treasurer Terry Stapleton but Stapleton said it was not him. Now who would sign his name for him? When the 5 delegates reached the hotel they found they had no rooms and even if they did the National would not be paying for them. This was after one of the delegates had previously called the National office to see exactly what the National was paying for. Of course she was assured at that time that the National would be paying for their room, airfare and meals. Supposedly the order to not pay came from the top man himself, President Burrus. Now that makes you wonder if they ever communicate with each other. Of course this led to conflict and confusion. What a way to start a conference. Eventually it was cleared up and the National did pay for the 5 delegates to be in attendance.

Then even before we could get to the agenda we were told that the Retiree’s would never meet with the All Craft Conference again. After all we were not a craft. More controversy and conflict!!!!! Even though we only had about 50 retiree delegates we got very vocal and expressed our displeasure to Secretary-Treasurer Stapleton and President Burrus. We were not so kindly informed that if we wanted that changed we would have to bring it up at the National Convention. We were told that we could have our own Retiree Conference but budget constraints would also have to be considered. Well budget constraint also has to be considered by retirees who want to attend these conferences. When it is combined with the All Craft Conference a lot of retirees can share rooms with delegates from the crafts, share travel expense and also get to have a little face to face with future retirees. The retirees also got some ideas from the crafts on things we can do to help the active employees. I later found that the retirees were not the only members slapped around by our national officers. The Support Services Department was also informed that they would not be included in the All Craft Conference. To me that is a real slap in the face to these members. They may not be designated as a "craft" per se but they certainly meet the criteria. And of course this all came right after we heard this "poor me" speech from President Burrus about all of the functions he had to attend each year and this took time away from his family. One would think combining all of these conferences into one would cut down on the time he had to take away from his family.

As retiree’s we found that our work is really cut out for us. During the conference a hearing was held by Senator John Kerry(D-MA) to examine the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP) of the Social Security Act that denies federal retirees and their spouses their earned Social Security benefits. No one from APWU was at that hearing even though there were people still in Washington capable of attending and testifying. As retiree’s who pay our dues to the National Union we need to demand that our National officers be present at hearings that affect us and will affect them if they ever plan to retire ( I think some of them plan to be there forever). It was brought out at the conference that we all need to take a more active approach to legislative issues affecting current and retired postal employees. This means from every single member to the top person, President Burrus. Some of the national officers were heard mumbling that we didn’t have a shot at eliminating GPO or WEP but that was also said of the HATCH ACT. It may have taken 30 some years but we did get it changed.

We had a lengthy agenda which was addressed by outgoing Retiree Director Doug Holbrook and newly elected Director Judy Beard. Most of the items addressed legislative issues regarding retirees. There were a few agenda items that addressed retiree chapters not receiving support from their own locals and state unions. This simply amazes me as our local and state unions are very supportive. I do not understand why locals do not support their own retiree chapter. After all hopefully every single one of them will be a retiree some day.

Also discussed at the conference were ideas of speakers, issues and things retiree chapters could do for their members in addition to the legislative issues. We will be incorporating some of these ideas for our future meetings. Our May 2008 meeting will be more for the spouses of all federal retirees. It will not be a pleasant, happy meeting but a very important one for all members and their spouses. We will be helping your spouse to know what to do if you, the federal retiree, passes away. Make sure you plan to attend. Like I said it is not a pleasant subject but it is inevitable that this will some day happen.

We will be getting minutes from the conference and once we do I will send them on to Lance and Brian, editors of the DMI New & Views, for inclusion in the paper.

In conclusion, needless to say it was a very interesting conference and I did get a lot of ideas for future meetings. Thank you for sending me.

Barb VerSteegh, President

Des Moines Iowa Retiree Chapter

Taxing Retirees: Some States Will Give You a Break (And Some Won't)

By Ralph Smith

Monday, February 11, 2008

You can have daily headlines from FedSmith.com delivered right to your desktop each business morning. The service is free and you don't get junk e-mail as the price of your subscription. Just visit our newsletter page to sign up!

If you are a federal employee who has 25 or more years of federal service, chances are you are thinking hard about becoming one member of the "retirement tsunami" predicted by the Office of Personnel Management that will be overwhelming federal agencies in the next several years.

If you are thinking hard about retirement, you face an important decision: Where do you want to live?

This can be a complex decision. When you are working, the decision about where to live is often made by where your job is located and where you can make the most money. You may decide to move to the Washington, DC area while an active federal employee to build up your retirement annuity because you are likely to make more living in the Washington metropolitan area than in many other areas of the country.

On the other hand, you may find that big-city living isn't for you when you retire. If you bought a nice house for $100,000 in Alexandria, Virginia back in 1978, that house may be worth $600,000 or more now depending on the usual real estate factors (location, location and location). You could sell the house, take the money from the sale and move.

There are advantages to living in Washington or any other big city but there is more congestion, higher taxes, and that $600,000 or more you may get from selling your house may buy a magnificent luxury condo on the ocean or in the mountains or a beautiful golf resort far away from the stresses of your former life as a hard-working federal employee (Check out the options at this one Florida beach and golf community which has advertised on the FedSmith site.). Of course, there are also more restaurants movie theaters, and other entertainment venues in a large city than you will find in areas with a smaller population. And, if you are retiring, you will want to consider where your children, relatives and friends may be living and how far away you want to move from these people important to you.

There are also considerations such as climate. If you like warm weather, you might be inclined to check out cities in Florida where the weather is warmer than most other parts of the country. In some parts of the state, housing is relatively inexpensive and there are communities that cater to retirees. Phoenix and Southern Calilfornia are other retiree hot spots and they all have some advantages. (Check out Looking for a Warm, Sunny Retirement Haven?)

When you retire, you have choices that you do not have when you are working. If you have always wanted to move to a different area, you can do so--or at least you are not restricted by your job from moving.

There are also financial considerations. One of the biggest considerations is taxes. Some states give retirees a tax break. It may not sound like much but the extra money you may find yourself handing over to state and local taxing authorities during the last few decades of your life can make a difference in how well you live.

Several readers have written in recently asking about the best states for retirees with the primary consideration being taxes. Below you will see a list of states that do not tax income from federal pensions. Before you check over the list and start packing your bags, please note these very important disclaimers because your situation may be different than that others.

First, this is a broad list. Our American tax structure is horrendous. It is complex, difficult to understand, expensive to administer and you will probably need a tax lawyer or a tax adviser to tell you about any complications you may encounter. Just because your former office mate found that a state was ideal, you may find it is a tax hell for reasons that did not apply to your colleague.

Second, there are numerous variations on state and local taxes just as there are with federal taxes. I am not a qualified tax adviser and don't make any claim to know the details of the tax structure of all states and localities--including those you may be considering as your retirement haven.

Third, tax laws change and may change quickly (even after you make the big move). What may have been accurate several years ago may no longer be accurate. Check with your tax adviser for any changes that may have occurred during the recent sessions of the legislature in a state in which you have a particular interest. I have put together a list from several sources based on relatively recent information but make no claim as to the accuracy today or next month or next year. Pay your tax adviser for the most recent advice you can get for the particular state and town you are considering before making your big move.

For example, several lists of states with no income tax do not include Florida. Florida does not have an income tax. It did have an intangible personal property tax under which a person paid a small percentage of tax based on the total value of stocks and bonds. That tax was eliminated in the past year so Florida is now a state that does not have an income tax. If you are a retiree in Florida and have substantial assets in mutual funds, bonds or stocks, your income just went up because you no longer have to pay this tax.

In fact, when you research, you will find different value and lists because of how the figures are calculated. But, to assist you in making your decision, here are some lists that may be a good starting point. (Check out this retirement housing guide as well.)

Here are ten states that exempt all federal, state and local pension income from taxes:

• Alabama
• Hawaii
• Illinois
• Kansas
• Louisiana
• Massachusetts
• Michigan
• Mississippi
• New York
• Pennsylvania

Several other states also do not tax pension income but have various restrictions. For example, some states have different tax rates depending on the years in which government service was performed, or the date on which a person retired, or the date on which the government service was first started. One example: North Carolina does not tax annuities beginning with 1998 if an individual had five years of government service as of August 12, 1989.

Perhaps you are planning to retire but work part-time. Which states offer the best deal on state income taxes?
Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming do not have a personal income tax. Tennessee and New Hampshire claim not to have a personal income tax but that isn't entirely true. They do tax income from interest and dividends.

Sales taxes can also play a role in your decision. Sometimes, a state with a low income tax rate (or no state income tax at all) will make its money from high sales taxes. Before you decide to retire, sell your house, and move to your retirement paradise and buy a new Mercedes, check out the sales tax rate. A tax of 9% on that expensive luxury car may make a difference in your decision. Check out these states with the highest tax rates (including an average for city and county tax rates) as compiled by the Retirement Living Information Center:

• Tennessee (9.4%)
• Louisiana (8.7%)
• Washington (8.5%)
• New York (8.25%)
• Arkansas (8.15%)
• Alabama (8.05%)
• Oklahoma (8.05%)
• California (8.0%)

And where is your lowest tax burden as a percentage of total income?

• Alaska (6.6%
• New Hampshire (8%)
• Tennessee (8.5%)
• Delaware (8.8%)
• Alabama (8.8%)

On the other hand, you may want to avoid Vermont (14.1%), Maine (14%), New York (13.8%) and Rhode Island (12.7%).

Are you confused now? No one said our tax structure was designed for the convenience of individual citizens. But pay close attention. The COLA you get with your federal annuity will not make you rich and you will probably want to cut down on your expenses before you make your final retirement decisions.

For Some Retirees, Health Insurance Is Tax-Free
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By Stephen Barr
Thursday, September 27, 2007; D04

EEOC Honors IRS

The Internal Revenue Service was honored yesterday by the Equal Employment Opportunity Commission for its efforts to hire persons who are blind or have visual impairments.

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