Coloradans Will Get Even Larger TABOR Refund Checks Next Year | The Colorado Sun
Higher-than-expected tax revenues mean Coloradans will receive TABOR refund checks again next year. The payments, which will go out after taxpayers file their 2023 tax returns, will likely be even higher than the $750 per person the state sent out in 2022.
Drug Prices: Drugmakers Aim to Fight Medicare Negotiations at SCOTUS | CNBC
Manufacturers of prescription drugs are filing lawsuits aiming to stop Medicare from implementing its new drug price negotiation program. The government argues that directly negotiating prices will lower costs for Medicare enrollees, while the drug makers say the program will cut into their revenues and limit future drug development.
Median Age in America Hits Record High | 401K Specialist
The median age in the United States—the age at which half the population is younger and half is older—reached a record high of 38.9 last year. Another milestone in America’s aging population is right around the corner: The point in time known as Peak 65, when more Americans turn 65 than any other point in history, is expected to happen in 2024.
Women Have Significantly Less Saved in 401(k)s Than Men | Kiplinger
Women have historically earned less than men in the workplace, and that gender gap continues into retirement. According to a recent report, men’s average 401(k) balance is about 50% higher than women’s. The report also finds that 52% of women participate in a 401(k) compared to 61% of men.
News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.
The amount of TABOR Refunds could be smaller if Prop. HH passes this November by diverting TABOR money to backfill counties and school districts for a property tax decrease some legislators want; but is a reduced tax rebate actually a tax increase; and thus why the issue is subject to a vote of the electorate? Where does PERA Board & Staff stand on Prop HH? Surely, it would help school and local government pension funds? It’s obvious excess general fund reserves, create TABOR refunds, and are due to the state not paying the full share of the employers’ contributions into pension funds. Unfortunately, shortchanging pension funds to avoid raising taxes has resulted in solvency issues that increase active members’ payroll deductions and reduce retirees’ benefits. Isn’t it about time for legislators to stop raiding the state pension fund, begin making up for shortchanging employer contributions, and stop using what they withhold from the pension fund to finance TABOR rebates! Oh, and contributions to pension funds, from the general fund, do NOT require a vote of the electorate.
Just Tuned-in to the Town Hall dog & pony show…And making comments as they come to mind during the Town Hall… Wow, is it the worst ever! So far we’re gonna get to waste money looking for a new chief thief, and the reason we’re not getting a COLA (in answer to the first question) is because that’s the legislature’s call, so sorry – 1% (be grateful for that). Naturally, since this is a “retiree’s meeting,” they were quick to point out that SB-200 “fairly” distributed the necessary actions across all members and it wouldn’t be fair to impose greater contribution rates on working members??? I suspect, in the evening version of this dog & pony show, they’ll assuage concerns about rising contribution rates by saying it wouldn’t be fair to reduce retirees’ benefits more. NOT A PEEP ABOUT THE EMPLOYER CONTRIBUTING MORE OF WHAT THEY OWE AND ARE IN ARREARS … Now some off-hand remark about the Social Security WEP is something you need to contact Washington about… now some drivel about they have a new phone system (boy does that sound like a government procurement scam, contractor field day, and waste of money). OH …. STOP PRESS now they’re doing a little survey, “Do You Want More Town Halls?” Let me guess – The Survey Says, “Yes Sir, May I Have Another!” Now the Financial lady is trying to tell everyone to be patient, until 2048 for full funding status…and a decent annual increase… Ha! Now they’re pulling the “Shared Sacrifice” card again… How many retirees will be dead long before they get an annual increase that remotely keeps up with inflation… “patience, they say.” What a farce … Now they’re taking quasi-active member questions, retired teachers, about how their return to work retirement (non-)reduction impacts the fund (different than other retirees who return to work, because they don’t have a bunch of kids to hide behind) or why did PERA oppose it… PERA opposed it because it costs the fund money (again they don’t say that the real issue is that educational employers wouldn’t make the actuarially required contribution to hold the fund harmless)… Now someone named Ed is asking about insufficient fund solvency possibly resulting in no benefits and once again the financial lady’s response is, “Wait until SB-200’s shared sacrifice works it way through to 2048, to make everything good.” … Although you’ll be dead by then. This is a ridiculous waste of everyone’s time and PERA member’s money! The poll question results … Just as I suspected an overwhelming majority said YES! Now more about firing the last “Chief Thief.” I’ve heard enough … I don’t want to miss the “Price Is Right.” In closing, these board and staff members should all resign for violating their statutorily required fiduciary duty to lobby for a COLA! COLA NOW!
So many retirees feel the way Joseph Brandon Smith does! I’ve been retired since 2009. The amount of money reduced from my monthly check is obnoxious, following the WEP reduction hoisted on all of PERA members! And what has the leadership of PERA done to help us, their members? As far as I can tell, nothing! No lobbying in DC, no complaints to The House, you are supposed to be on our side! Only reports about how nothing is done, year after year! It’s disgusting. Inflation has increased my monthly outflow by $500.00! How much did the PERA checks DECREASE in the time since i retired? Too much is the answer.
CONTACT PENSION REVIEW SUBCOMMITTEE CHAIR REP. HAMRICK!
PERA’s Town Hall was regurgitated to legislators Monday July 17th., touting the 1% Automatic Adjustment Provision (AAP), i.e., “the Un-COLA” based on PERA’s 2048 estimated funding level to be at 105% (which if between 100% and 120%, results in no change to the AAP). However, retirees need to contact the subcommittee’s Chair and politely inquire if legislation will be forthcoming to provide a real COLA (and if not, then seek a fair COLA, even if it means making an appropriation in conjunction therewith). Retiree’s ought to also contact other statehouse representatives in their districts to urge they provide a fair COLA (and not circumvent or confuse the real issue of a COLA by offering a refundable tax credit to poorer PERA retirees).
The online subcommittee had no video and failed to display PERA’s visual materials, so very little comment can be provided, but the state still hasn’t paid all of the annual direct payment (of $225 million) since the pandemic! Equally disturbing, PERA can neither account for secret private equity deal costs nor take advantage of changing market conditions, in order to deviate from their standard mantra of, “be patient, wait until 2048.” Some legislators expressed concerns over PERA’s performance, but mostly for the state (employers) to pay less in contributions. Therefore most retirees today will die before they see an increase indexed to inflation to any degree! At least Sen. Kolker questioned the declining value of pensions due to inflation and the lack of a COLA, but he also got the shared sacrifice line (what else can PERA say?).
It is important to note that some members did express the committee ought to realize a COLA is important to attract and retain a competent workforce, is a matter of fairness, and perhaps the subcommittee should recommend the General Assembly pony-up (legislate) to pay what it takes to keep promises made to public servants.
The subcommittee is charged with promulgating any proposed legislation by September… so contact your representatives by then.
Rep. Hamrick’s contact details can be found at https://leg.colorado.gov/legislators/eliza-hamrick