NARFE represents all active and retired federal employees

Last week's discussion centered on the fact that having senior citizens retiring in our community and our state makes an economic impact. At present, many are going to other states to retire, because they do not have to pay income tax on their retirement. It becomes an investment to reduce their income tax and make Missouri one of the places where people want to spend their retirement years.

As a result Missouri would gain because of their disposable income, making it a win-win situation.

Much is happening in state government relating to giving retirees relief on their retirement when it comes to paying state income tax, with the proposal of different bills. One bill, if passed, will do away with state income tax on Social Security retirement. This is one of the proposals the governor has made. A big turn around in the economic climate in the state has enabled this proposal to be considered.

Another is HB 133. The summary is as follows:

Income Tax Deduction for Pensions

Currently, a public or private retiree may deduct up to $6,000 of pension allowances received each year if his or her income is not in excess of $32,000 for married taxpayers or $25,000 for single taxpayers. This bill removes the income limitation when a taxpayer reaches the age of 65, allowing the full $6,000 of retirement benefits to be deducted from state income tax regardless of income. Taxpayers younger than 65 years of age will still be allowed the $6,000 benefit deduction subject to the income limitations.

A similar bill has been introduced in the Senate -- SB 319. These bills will remove the income levels for retirees to receive the $6,000 reduction. This is for all retirees, including teachers, state retirees, military retirees, federal retirees, private pensions and others.

State Representative Barney Fisher, R. 125th District, called this week to say there is good news for the retired teachers. It is now being attached to the Social Security bill. He asked for the teachers to be notified of this proposal. It has the support of the governor.

If it flies, it will benefit the teachers and the state by keeping them from retiring elsewhere. The state will benefit, but could history repeat itself? A few years ago, this state and others exempted state retirees from being taxed. As a result a law suit in Michigan went to the Supreme Court and the ruling was that it discriminated against the federal retirees -- if state retirees were exempt from paying income tax, federal retirees should be exempt also. Missouri made the decision to require state and federal retirees to pay income tax. Other states exempt both categories from state income tax.

The decisions made by the legislature will have an effect on this community and area. Encouraging retirees to retire here will have an impact on the community.

National Active and Retired Federal Employees are the only organization active in maintaining the benefits that is received by all federal retirees. Many stereotype federal employees as being lazy and obtaining more than they deserve. The grass is usually greener on the other side of the fence. At the same time many federal employees are of the opinion that they would have done better if they had been in the private sector. There are exceptions, but generally federal employees are dedicated and work hard.

Retirees are under the opinion that they are going to receive certain benefits during retirement. It is thought of as a contract that has been made. Still there is a constant effort to remove some of the benefits. Most do not realize that by the stroke of a pen by congress there would be no more retirement payments. It most likely will not happen -- but it could.

Most federal employees do not realize what NARFE has done for them over the years and is still making efforts for protecting the benefits that active and retirees deserve. For instance the exemption of the retirement pay from state income taxes is one of the many items that NARFE has been trying to achieve each year. Maybe this is the year. Taxes have already been paid on this annuity during employment.

Like it is in many other places and groups, NARFE is consists of only a portion of those eligible to join. Still, many people are benefiting from NARFE weather they consider it or not.

The local chapter, Chapter 1843, El Dorado Springs/Nevada consists of memberships from Vernon, Cedar, Dade and Barton counties. On the average only about 16 percent of the retirees belong to NARFE, a small portion of those that benefit from what is being accomplished. Only a small number attends the chapter meetings.

The next meeting will be held at Greenfield's Harvest House in Nevada, Monday, Feb. 5. One member understood that we met at Greenfield and they went to the city of Greenfield for the meeting -- it was not being held there.

There will be a good program Monday on health of the heart.

Under consideration is changing the name of the chapter to a more inclusive name. It is more than El Dorado Springs and Nevada.

For information about NARFE call me at (417) 667-6024.