• We’re currently investigating an issue related to the forum theme and styling that is impacting page layout and visual formatting. The problem has been identified, and we are actively working on a resolution. There is no impact to user data or functionality, this is strictly a front-end display issue. We’ll post an update once the fix has been deployed. Thanks for your patience while we get this sorted.

What Taxes Do Public Workers Not Have to Pay?

Some govt employees have pension plans separate from SS, so they pay into those plans rather than SS. Other than that, they pay the same taxes as everybody else, AFAIK.
 
As far as i know they aren't exempt from any taxes....... they are paid WITH our taxes.... but other than that i can't see where you're coming from
 
Jhhnn said:
Some govt employees have pension plans separate from SS, so they pay into those plans rather than SS. Other than that, they pay the same taxes as everybody else, AFAIK.
Click to expand...


So public workers would have a pension instead of social security? Or would they have a pension in addition to social security?
 
Fenixgoon said:
i pay social security

<--- federal employee
Click to expand...

Right, it all depends on if there is a retirement/pension plan in place. It's more common for state employees than fed.

I may also be mistaken as I remember the fed retirement plan is essentially SS, so they all pay? But I'm positive about state.
 
Public workers aren't exempted from taxes because two public workers earning exactly the same amount may end up paying different amounts of taxes due to exemptions, deductions, and credits.
 
TalonStrike said:
So public workers would have a pension instead of social security? Or would they have a pension in addition to social security?
Click to expand...

They didn't contribute, so they can't collect. However their pensions are incredible and far and beyond SS. Collecting 65-80% of your salary for life with all benefits included is the norm.
 
State workers on a PERS plan can still get SS if they work enough qualifying quarters in non-PERS jobs. It's not uncommon for people to get a PERS job in their 20's, work 30 years, retire with full PERS, then work private sector for several years.

The problem is that SS reduces benefit if you get a pension so oftentimes PERS employees who contribute to SS before or after their PERS job get absolutely nothing from SS.
 
Jhhnn said:
Some govt employees have pension plans separate from SS, so they pay into those plans rather than SS. Other than that, they pay the same taxes as everybody else, AFAIK.
Click to expand...

For Federal civil service, the old CSRS (civil service retirement system), was replaced in the mid-80's with the present-day FERS (federal employee retirement system). CSRS employees didn't have to pay into Social Security, but they also cannot collect from it until they pay into it (used to be 20 quarters, or 5 years......now it's 40 quarters, or 10 years, minimum).

FERS employees have to pay the same taxes as anyone else. Their retirement systems also isn't as generous as the old CSRS, but they had the opportunity to pay into a 401K style plan, called Thrift Savings Plan, aka TSP (and get matching contributions from Uncle Sam). CSRS employees (of which there aren't that many around anymore) eventually got to contribute to TSP, but do not get matching funds from Uncle.

Oh, and no matter how many studies they make, that allegedly show that federal civil service employees make twice as much as private company employees, try to remember that a large percentage of federal civil service employees live around high cost of living areas, like Washington DC, San Diego, Seattle, etc. Especially around DC, many of them are VERY high ranking executive-rank employees (think Secretary of Defense, Commerce, State, etc, and their direct deputies, down 3 or 4 levels of management). Executive series employees do make pretty good bank, but it's because of the level of responsibility (think CEO, COO, company presidents and vp's, etc). Many more of them are managerial and supervisory GS pay grades, who also make pretty good money, especially as the GS pay scale pays cost of living allowance in high cost of living areas.

Take away all those people, and just count the working men and women, doing their day to day jobs, and you'll find that the vast majority of them could make much better money "on the outside".
 
TalonStrike said:
So public workers would have a pension instead of social security? Or would they have a pension in addition to social security?
Click to expand...

Some of both- it depends. Colorado state employees have a pension plan but no SS, other govt employees have SS, some have both, but you can't have neither...
 
1) There are social security tax breaks here and there. For example, as a grad student doing government grant work, I didn't pay social security tax. I didn't get credits for it either, so I may get lower payouts when I retire.

2) There are military tax breaks. See the Military Family Tax Relief Act of 2003 as one example.

3) Then there are random deductions for certain public workers. For example, see public safety employees here (police for example) http://www.irs.gov/publications/p575/ar02.html#en_US_2010_publink1000226714
 
Some private sector employees, railroaders, also have pensions that are separate from but linked to SS, as dullard's link reminded me.
 
Teachers here, the last I knew, have the luxury of the school system paying their share of SS. The school system foots the entire bill. Not sure if they fall under the guise of "public workers" though.
 
spidey07 said:
They didn't contribute, so they can't collect. However their pensions are incredible and far and beyond SS. Collecting 65-80% of your salary for life with all benefits included is the norm.
Click to expand...

Mere assertion of hogwash as fact, which never stopped Spidey before- why would it now?
 
boomerang said:
Teachers here, the last I knew, have the luxury of the school system paying their share of SS. The school system foots the entire bill. Not sure if they fall under the guise of "public workers" though.
Click to expand...
Doesn't really matter if the employee pays or the employer pays; it is all factored into the cost of employment, just different lines on the pay stub.
 
TalonStrike said:
So public workers would have a pension instead of social security? Or would they have a pension in addition to social security?
Click to expand...

I work for a city government and do not pay ss since we have our own pension plan. It really all depends on what type of retirement they have though. This also does not mean that I will not get ss payments either, since I have paid in for many years before I got this job. My ss, if it even exists when I retire, might be reduced though.....
 
spidey07 said:
They didn't contribute, so they can't collect. However their pensions are incredible and far and beyond SS. Collecting 65-80&#37; of your salary for life with all benefits included is the norm.
Click to expand...

Uhhhhh what pension plan are you talking about? It certainly isn't FERS.

http://www.opm.gov/retire/pre/fers/computation.asp

FERS Basic Annuity Formula

Under Age 62 at Separation for Retirement Or Age 62 or Older With Less Than 20 Years of Service: 1 percent of your high-3 average salary for each year of service.

Age 62 or Older at Separation With 20 or More Years of Service: 1.1 percent of your high-3 average salary for each year of service

I know there are a lot of career feds, but I don't 'the norm' is for them to have 60 years of service.
 
You must log in or register to reply here.

TRENDING THREADS

Back
Top