STRS Retirees...you may very well have an additional $250 "stimulus" coming your way!

From John Curry, February 12, 2009

Lawmakers Add $250 Tax Credit For Retired Public Employees

February 12, 2009
By Martin Vaughan
Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)-
EasyBourse.com

Retired public employees in states including Massachusetts, Ohio, Colorado and California won't miss out on a $250 stimulus payment, thanks to a last-minute change to economic recovery legislation Congress is expected to approve by the weekend.

"This is teachers, firemen, police and cafeteria workers," said Rep. Richard Neal, D-Mass. "There would have been at least a million people in state and local retirement funds that would not have derived a benefit from this bill."

Thanks to the last-minute addition, retired public servants that aren't covered by Social Security will be able to claim a $250 credit on their 2009 tax returns.

The stimulus legislation that the Senate passed this week included a one-time payment to seniors who receive Social Security, certain veterans and recipients of disability benefits. In House-Senate conference negotiations this week, lawmakers reduced the amount of the payment to $250, from $300 in the original Senate bill.

But under the original Senate language, certain public employees who receive benefits from state and local pension plans wouldn't qualify. That's because many localities didn't opt into Social Security, instead setting up other retirement options for their retirees.

Ohio is the state with the lowest percentage of retired public servants covered by Social Security, at 3%. It is followed by Massachusetts at 6%. California, Maine, Nevada and Texas all have less than half of retired public workers covered by Social Security.

The change would cover about one million retirees, and would add about $250 million to the cost of the stimulus bill, according to a congressional aide.

Under the stimulus agreement, seniors that are covered by Social Security, retired railroad workers, and recipients of veterans and disability benefits that don't have other income would receive a $250 one-time payment in the mail.

By contrast, retired public employees not covered by Social Security will not get a check in the mail, but will be able to claim their $250 tax credit when they file their 2009 tax returns next year.

By Martin Vaughan, Dow Jones Newswires