It doesn't come out of your gross and it isn't taxed...but what it is doing is this was part of the collective bargaining agreement so their actual yearly salary would be 47,500. Instead of getting that 2500 as part of their gross pay, it goes to the pension fund. That is how everyone is explaining it. Read the comments by the blogger in the comments section and he explains it several times...
-----Original Message----- From: C. Hatton Humphrey [mailto:[email protected]] Sent: Saturday, February 26, 2011 08:45 To: cf-community Subject: Re: Walker, Wisconson Lier See, working for an HR firm that handles benefits all the time I have a completely different read on that. My interpretation of that line is this: You get a fixed salary based on the contract. Let's say that salary is $50,000 per year. Based on the text of the Retirement Benefits section, the state contributes 5% of your base salary, or $2,500 per year, to your retirement fund. This does *not* come out of your salary and does *not* impact your taxable wages. Additionally, you do *not* have to contribute *one dime* to the retirement plan to qualify for this 5%. Now, I'll say that my wife agrees with your interpretation. The only way to really see who is right is to analyze the check stub of a Wisconsin state employee. Until Later! C. Hatton Humphrey http://www.eastcoastconservative.com No trees were killed in the sending of this message, but a large number of electrons were terribly inconvenienced. On Sat, Feb 26, 2011 at 4:46 AM, Eric Roberts <[email protected]> wrote: > > Right...5% of your earnings go into the pension fund instead of being > paid directly to you. That is different than how a 401k works, for > instance, were you may have 5% of you wages going in plus your > employer also matches it with 5%. So this is in lieu of getting paid > 5% more. It's essentially a forced savings plan. > > -----Original Message----- > From: C. Hatton Humphrey [mailto:[email protected]] > Sent: Friday, February 25, 2011 20:04 > To: cf-community > Subject: Re: Walker, Wisconson Lier > > > Let me break down my understanding of that line and tell me where you > disagree: > For the duration of this Agreement, the Employer <- That would be the > State shall contribute on behalf of the employee five percent (5%) of > the employee's earnings paid by the State. > > That means that the State pays 5% of your gross wages into the pension fund. > Do you have a different interpretation of that? > > Until Later! > C. Hatton Humphrey > http://www.eastcoastconservative.com > > No trees were killed in the sending of this message, but a large > number of electrons were terribly inconvenienced. > > > > On Fri, Feb 25, 2011 at 7:59 PM, Eric Roberts > <[email protected]> wrote: >> >> by the State." > > > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Order the Adobe Coldfusion Anthology now! http://www.amazon.com/Adobe-Coldfusion-Anthology/dp/1430272155/?tag=houseoffusion Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:334739 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm
