Tuesday, August 28, 2007

GPO - BS....Government Pension Offset B.S.

The Government Pension Offset is an arcane provision of Social Security that unfairly punishes those who work for the government and earn a pension.

A client of mine is a teacher and her husband died a few years ago. He paid into Social Security his whole life, however his wife, my client, will never see a dime of it. The culprit: she will receive a pension from CalSTRS (California State Teachers Retirement System)....of which she contributed to and earned on her own account. My client is punished for working and will have a harder time in retirement because she will not receive income that her husband worked very hard for and for which he gave up 12.4% of his income during his lifetime.

Had my client's husband had a large life insurance policy that allowed my client to no longer work (after her husbands death) she COULD collect social security survivor benefits, but because she works for a government institution...nothing. Does this make any sense?

In my opinion this is flat out thievery. There is no other way to describe it.

I understand the Windfall Elimination Provision, however the Government Pension Offset is just ridiculous and should be repealed retroactively. We need to restore some sense of honor to our citizens who work hard and pay into a system that they are promised to get something out of.

Thanks for listening - call or e-mail your congressman and senator about this issue.

Scott Dauenhauer

Monday, August 27, 2007

90-24 Today, Tomorrow, and Beyond

McKay Hochman - Commentary

This is a link to a quick primer on what we can expect with the new 90-24 rule and timeframes, every school district needs to read this (as well as participants). It is vital that school districts have a plan for dealing with this issue, the risks are too great to wait.

Scott Dauenhauer CFP, MSFP, AIF

Monday, August 13, 2007

Mistakes We See - 403(b) - Reish

Mistakes We See (August 2007)

A good, short article about the mistakes Reish sees in 403(b) plans, districts should take note.

Scott Dauenhauer CFP, MSFP, AIF

Monday, August 06, 2007

New 403(b) Transfer Rules

403(b)wise : Features : New 403(b) Transfer Rules

Dan Otter of 403bwise.com and author of Teach and Retire Rich has put together a great piece on 90-24 transfers and how they will change come the end of September 2007. This is a must read.

Scott Dauenhauer CFP, MSFP, AIF