Summary
Would you trade a tax-free payment equal to 25 percent of your salary this year and every year you work in return for a bigger pension down the road?
That may be about to happen to 32,000 federal workers in Alaska and Hawaii. Congress is working on a proposal that would wean those civil servants from the tax-free, 25 percent cost-of-living allowance they now get in favor of offsetting pay increases that would be taxed like the rest of their salaries.See the full content of this document
Extract
Possible Pension Boost for Some
Right now that tax-free payment looks good to workers. But since it isn't included in their salary-service retirement computation, it reduces their final annuity by 25 percent. Many people who lived well in Alaska and Hawaii whil...
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