Wednesday, August 1, 2012

IRS scrutiny on public pensions

The following is just one more reason all public pensions should be abolished--we just need one public pension program (which we already have)--it's called "Social Security."

Capitol Weekly: New scrutiny from IRS on public pensions: " . . . If the IRS determines charter school employees are ineligible, CalSTRS requested guidance on whether current members should continue unchanged, continue but accrue no new benefits, or be denied pensions and repaid for contributions. CalSTRS mentioned the legal problem of impairing the “contractual relationship” with members. Because CalSTRS members are not in Social Security, denying pensions for prior years may mean workers were not in any retirement system, a federal violation. At a town hall meeting in Oakland last March, said CalSTRS, the advance notice of new eligibility rules was called a “blueprint” by IRS employees. CalSTRS said the final version should be unambiguous and clear that the IRS makes final decisions."


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