State Universities Annuitants Association
It’s another Mini Briefing
December 23, 2009
Couldn’t leave for
Christmas without sending these informational pieces to you –
Medicare – According
to the National Medicare website and conversation with a Medicare
representative, the increase in the premiums ($96.40 to $110.50) is due to possible
increases in Part B costs. The “new Part
B beneficiaries will pay $110.50 because they did not have the premium withheld
from their Social Security benefit in the previous year). Also, beneficiaries who do not currently have
the Part B premium withheld from their Social Security benefit will pay
$110.50.” There was still no mention of the Windfall
Elimination from the Medicare representative even though it was prompted. WF is purely SS. The increase is because no
payments were made to Social Security (it was prohibited). Windfall Elimination occurs when a person
qualifies for Social Security and will also receive a pension from SURS; Social
Security is usually reduced. Medicare
qualification is not reduced. Medicare
recipients are not subject to the Windfall Elimination.
So are you better off
than those who are receiving Social Security? Let’s break
the information down and provide an example.
People receiving Social Security will not receive a Cost of Living
Adjustment in 2010; their Medicare premium will stay the same for 2010.
People receiving a pension from SURS will receive a 3% Cost of Living
Adjustment in 2010. But, those without
40 quarters of Social Security will pay an increase of $14.10 or $110.50.
The example compares two
people; one receiving a SURS pension and one receiving Social Security; both
receiving $2,600 per month.
SURS Social Security
$2,600.00 $2,600.00
x
3% COLA = $78.00 increase x 0%
COLA = $00.00 increase
or $2,678.00
or $2,600.00
( 110.50) includes $14.10 increase ( 96.40) includes no increase
$2,567.50
$2,503.60
$63.90+
More about Medicare . . . . .
Your Medicare Part B premium is the standard Medicare
premium, plus any surcharges (or penalties) for late enrollment or
reenrollment, plus a possible income-related monthly adjustment amount. You
must pay your Medicare Part B premium to get Part B benefits.
Most Medicare beneficiaries will continue to pay the same $96.40 premium amount
in 2010. Beneficiaries who currently have the Social Security Administration
(SSA) withhold their Part B premium will not have an increase in their Part B
premium for 2010.
For all others, the standard Medicare Part B monthly premium will be $110.50 in
2010, which is a 15% increase over the 2009 premium. The Medicare Part B
premium is increasing in 2010 due to possible increases in Part B costs.
In 2010, new Part B beneficiaries will pay $110.50 (because they did not have
the premium withheld from their Social Security benefit in the previous year).
Also, beneficiaries who do not currently have the Part B premium withheld from
their Social Security benefit will pay $110.50.
Higher-income beneficiaries pay $110.50 plus an additional amount, based on the
income-related monthly adjustment amount (IRMAA). Each year the Social Security
Administration (SSA) decides if you must pay an income-related monthly
adjustment amount (IRMAA). SSA will use your Federal income tax information for
the most recent tax year that is available. SSA does not use any information
that is more than three years old. The Internal Revenue Service (IRS) supplies
your tax filing status, your adjusted gross income, and your tax-exempt
interest income. SSA will then add your adjusted gross income together with
your tax-exempt interest income to get an amount that we call modified adjusted
gross income (MAGI).
The IRMAA will vary based on your filing status and MAGI. The IRMAA is
effective from January 1 thru December 31 each calendar year. SSA will refigure
your Medicare Part B premium amount again next year when the IRS updates the
information. Please contact the Social Security Administration if you have
questions about your specific situation.
If your yearly income is $85,000 or less as a single person or $170,000 or less
for a married couple, the 2010 Part B monthly premium is $96.40 if the
beneficiary has SSA withhold in 2009, $110.50 for all others.
If your yearly income is $85,001 - $107,000 for an individual or $170,001 -
$214,000 for a married couple, the 2010 Part B monthly premium is $154.70.
If your yearly income is $107,001 - $160,000 for an individual or $214,001 -
$320,000 for a married couple, the 2010 Part B monthly premium is $221.00.
If your yearly income is $160,001 - $214,000 for an individual or $320,001 -
$428,000 for a married couple, the 2010 Part B monthly premium is $287.30.
If your yearly income is above $214,000 for an individual or above $428,000 for
a married couple, the 2010 Part B monthly premium is $353.60.
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Watch and listen to Governor Quinn as he does plan to create a two-tiered
retirement system for teachers,
prison guards, and other state workers.
This does not eliminate the obligation to pay $5.8 billon to the pension
systems in 2010.
The candidates for governor are not addressing the pension debt.
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House Bill 4720 was filed by Representative Jack Franks, (D-Marengo) on
December 16th. This bill
would not allow new legislators to qualify for pensions. Current pensions would not be revoked.
Synopsis As Introduced
Amends the General Assembly Article of the Illinois Pension
Code. Restricts participation in the General Assembly Retirement System by
members of the General Assembly to persons who become participants before
January 1, 2011 and that, beginning on that date, the System shall not accept
any new participants who are members of the General Assembly. Makes related
changes. Effective immediately.
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HB 4706 - Representative Winters has been receiving quite a bit of
communication because of his introduction of HB 4706. An interview was aired on NPR Monday
morning. It seems he is willing to amend his
bill to include grandfathering in those students who are already seeking their
4-year degree and to resend the legislators ability to handout tuition
scholarships.
Illinois General Assembly Scholarship - Every year, each of the
state's 177 legislators are permitted to issue up to eight years' worth of full
tuition waivers to students wishing to attend any of the state's universities.
The only prerequisite is that the student lives in the legislator's district.
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Keep Scrooge from knocking on your door!