Federal Retirees Getting Hosed by Bureaucracy

Steve Pearce

By Steve Pearce - My offices have been contacted by an overwhelming number of constituents who have seen their federal retirement annuity withholdings increase for the 2011 tax year. The reason for the increase is that the Office of Personnel Management did not adjust their withholdings to reflect the extension of the Bush tax cuts. Because the tax cuts were extended so late in the year, the IRS was unable to take the extensions into account as they planned withholding amounts for this year. But instead of fixing the problem once the extensions took effect, they decided to leave the withholding amounts as they had planned, thereby increasing withholdings even though taxes have not increased. Federal retirees will get their money back, but not until their tax returns next April. Essentially, the federal government is demanding an interest-free loan from federal retirees on fixed incomes—those who can afford it the least. As an added injustice, if federal retirees can’t afford to wait over a year to get their money back, they must contact the Office of Personnel Management themselves. In short, the federal government has placed the responsibility on citizens to take back what is rightfully theirs. These men and women are veterans, retirees, grandparents—everyday people who have worked hard, and now rely on a fixed income to survive. They have already seen inflation drive their buying power down. A disastrous healthcare law has driven their insurance and medical costs higher. And now, the government has arrogantly assumed that it can simply take an interest-free loan from these individuals until next April. This is a truly startling development. The money was never the property of the government to begin with.

That they took it wrongfully is unfortunate; that they expect individuals to spend their time and energy to correct this error is shocking. This is simply the latest step in a trend toward the false idea that the government somehow has an idea to regulate and control our lives and our property. Still, I am committed to rectifying this problem that has inconvenienced so many of my constituents. I am fighting in Washington against this destructive expansion of government, and I want to fight in New Mexico to help you get the money that is rightfully yours.

If you are a federal retiree and you believe that you have wrongfully had your retirement dollars withheld, you can contact customer service at the Office of Personnel Management at 202-606-1800. Also, my staff is helping federal retirees get the money that is rightfully theirs, and is standing by to help more. Please do not hesitate to contact my office at 855-4-PEARCE (855-473-2723) with any questions or concerns. I am happy to help you in any way I can.

Federal Retirees Getting Hosed by Bureaucracy