NEA looks out for retirees in advocacy efforts for economic stimulus package

Originally, the American Recovery and Reinvestment Act, known as the stimulus package, provided a stimulus credit to those who have an earned income but not to those who are retired and receive a pension in the form of Social Security payments or a PSRS pension. The NEA active and retired associations brought this to the attention of Congress, and as a direct result of NEA’s advocacy efforts, a provision was added that provides the following benefits to retirees.

State government and federal retirees who get Social Security benefits are in line to automatically receive a $250 payment in June. This is called the Economic Recovery Payment.

State government retirees who worked under a non-Social-Security-covered pension system, such as PSRS, and who do not otherwise receive Social Security, Veterans Administration retirement or railroad retirement benefits and who therefore will not receive the $250 payment, are eligible to apply for a $250 refundable tax credit on their 1040 for tax year 2009. This is called the Economic Recovery Credit.

State government retirees who worked under the PSRS pension system and also receive Social Security benefits are in line to automatically get the $250 payment in June. Again, the Economic Recovery Payment and the Economic Recovery Credit are items that are a direct result of the action of NEA active and retired leadership in Washington DC. This is a distinct advantage of a national association. Teacher groups without a national affiliation have little chance to influence federal legislation.

Urge your retired friends who do not belong to a retired association with a national affiliation to join MNEA-R, part of the 300,000 member NEA-R. And if you have not yet joined the MNEA-R, make that investment in your retirement future and join today.

By C.T. Sharp
MNEA-Retired president

sb, summer '09