Showing posts with label finances. Show all posts
Showing posts with label finances. Show all posts

Fraudulent unemployment claims

Friday, May 15, 2020

The Seattle Times reports:

Washington state officials said Thursday they’re stopping unemployment payments for two days while they attempt to block a gush of fraudulent claims aimed at stealing some of the billions of dollars that Congress directed to workers left jobless amid the coronavirus pandemic. 
Between March and April, the number of fraudulent claims for unemployment benefits jumped 27-fold to 700, the state Employment Security Department (ESD) told The Seattle Times. During that same period, the amount of money bled off by suspected fraudsters jumped from about $40,000 to nearly $1.6 million.

The Employment Security department advises you to go to their website and make a report HERE

The King County Sheriff's Office is seeing the rise in fraud reports related to unemployment claims:

Reports of fraudulent unemployment claims continue to come in at an alarming rate. In the past 24 hours, 135 reports of ID theft have been filed on our online system and that does not include reports forwarded to other agencies.
So here is a reminder: If someone uses your identity to file a fraudulent unemployment claim, and you live in the King County Sheriff's Office jurisdiction or any of our contract cities, make a report online at reporttosheriff.org. Select "Identity Theft" as the crime you are reporting.



Read more...

Tips for accessing unemployment benefits

Monday, May 11, 2020



From 46th District Reps. Javier Valdez and Gerry Pollet


The state’s Employment Security Department (ESD) is experiencing historically high volumes of people desperately applying for unemployment benefits. ESD is working hard to improve capacity and update technology, but their web pages are loading slowly, and call wait times are long. Here are some tips for minimizing delays and successfully applying for benefits.

First, be assured that everyone who is eligible will get their money. It is not going to run out, and it will be paid retroactive to the date of eligibility.

Prepare: Carefully read the instructions,watch ESD’s training videos, and use ESD’s checklist to help gather all the necessary documents to avoid delays.

Try the website first: If you have a problem that can only be solved over the phone, please keep trying. Thousands of people are getting through to ESD by phone every day.

Timing: Apply during off-peak hours, generally 9:00pm to 7:00am. Use a laptop or desktop if you can, and only try reloading twice in 10 minutes. If you don’t get through after that, wait two hours before trying again.

Keep in touch: Subscribe to receive email updates from ESD about their COVID-19 response.

Find answers to frequently asked questions here. 



Read more...

Budget briefing from LFP City Administrator

Friday, May 1, 2020

Lake Forest Park Town Center
Photo by Steven H. Robinson


From City Administrator Phillip Hill

While the Administration continues working to understand the full impact of the COVID-19 pandemic on City finances, the following steps were taken early on to keep the City in the best financial position possible:
  • Any vacant positions will not be filled until further notice.
  • All travel and training are suspended until further notice, unless this would impact critical services or required certifications.
  • All discretionary spending is suspended until further notice.
  • Seasonal workers will not be hired until further notice.
  • Contracted work will be evaluated and may be suspended as appropriate.

Additionally, the Administration is continually monitoring revenue sources and evaluating the impacts to the City budget. It is anticipated that the City could realize as much as a 12% impact to General Fund revenues and we will be working with the Budget and Finance Committee to identify opportunities to offset these losses while continuing to provide exemplary services to the community.

This summer, the City will begin work on the 2021-2022 biennial budget. Many challenges lay ahead, with the loss of road maintenance funds resulting from the passage of Initiative 976 and an economic future heavily impacted by current events. The Council and Administration are dedicated to delivering a budget balanced within these constraints during these uncertain times.

--Phillip Hill, City Administrator

There are several ways to stay informed about City meetings, events, and news. Click here for subscription options from the City of Lake Forest Park



Read more...

KCSO: Want your stimulus check? Scammers do too!

Saturday, April 11, 2020



The government is sending out relief checks as part of the federal response to Coronavirus. And scammers and thieves are chomping at the bit to get their hands on your check before you do.

Here are some tips to from the Federal Trade Commission to avoid falling prey:

1. To get your check, you don’t need to do anything. As long as you filed taxes for 2018 and/or 2019, the federal government likely has the information it needs to send you your money. Social Security recipients and railroad retirees who are not required to file a tax return also do not need to do anything to receive their money.

2. Do not give anyone your personal information to “sign-up” for your relief check. There is nothing to sign up for. Anyone calling to ask for your personal information, like your Social Security number, PayPal account, or bank information is a scammer, plain and simple.

3. To set up direct deposit of your check, communicate only with the IRS at irs.gov/coronavirus. And you only need to do this if you didn’t give the IRS your bank information on your 2018 or 2019 return.

--King County Sheriff's Office



Read more...

Grace period for payment of workers' comp premiums

Wednesday, April 8, 2020

The Department of Labor and Industries (L/I) is providing emergency relief through the Employer Assistance Program to help employers struggling to pay their workers’ compensation premiums during the coronavirus outbreak.
 
L/I is now offering a grace period for premium payments, along with payment plans for employers facing financial difficulties during the pandemic.



Read more...

Financial Aid support for current students and for next year

Monday, March 30, 2020

Rep. Pollet is vice-chair of the House
Higher Education Committee

 
By Rep. Gerry Pollet, 46th District
Lake Forest Park, Kenmore, North and Northeast Seattle 

Question and Answers for students at UW, other schools, including concerns for next year:
This is reposting an extensive explanation I shared in response to questions and concerns on another FB page over UW financial aid and enrollment.

As one of our legislative higher ed leaders, I've been trying to assist in ensuring that aid continues and to ensure people know that is the case. My thanks extend to numerous leaders at the UW, all our higher ed institutions in Washington and WSAC (WA Student Achievement Council, which administers our state student financial aid programs).

First concern: We are hearing concerns over students not enrolling for Spring quarter or not completing the semester. There are many faculty, parents, students wondering about the financial ability of students to enroll and learn online, and how that affects their financial aid.

State Need Grants remain in effect and will be distributed if a student enrolls in classes for the quarter. 
It does NOT change if the UW or any other institutions' classes are online. If students enroll in fewer than normal credits, they should check on the UW website, the institution they attend or the WSAC website, to be sure they enroll in enough credits to avoid a pro rata reduction, or to know what the pro rata reduction will be.

The UW is being very proactive in allowing students to get full UW grants with fewer credits than normal. (I'm continuing to see if State Need Grants can get more flexibility beyond giving full aid for enrolling with 12 credits).

Your Need Grant or Pell Grant is NOT REDUCED just because you are now living at home (including in another state), not in a dorm, etc. (Federal Pell grants do not appear to have been adjusted in the federal aid bill).

Re: Work Study: Early after the campuses closed, I received several disconcerting communications from student employees who were losing their work study employment and, on the other side of the coin, grad students told they would lose their job if they didn't show up for work in labs or for research where they were not essential. 

For the latter, this seems cleared up with the order about only essential workers allowed and guidance from UW to faculty and on-campus employers in this regard.

For the loss of work, WSAC acted and told institutions that work study funds should be converted to financial aid awards. 

UW has informed employers they should first try to keep employees on their payroll. Students should know if they lose work study employment, the UW will work to convert the state portion of the award to financial aid. 

I asked on a call with representatives from all our higher ed institutions the other day and was assured that they were all working to ensure that Work Study awards would be used as aid even if the job is not available this quarter or remainder of the semester.

RE: Next year: For students applying to college (something we are following in my household) and students who were counting on our State's unprecedented investment to change the State Need Grant to the WA College Grant with a guarantee of a full award to every student whose family income is up to 70% of median family income, we have a serious State financial challenge that no one has yet had time to plan for.

Students really need to fill out the FAFSA and WAFSA and apply for aid!!!

Being at home should provide plenty of time to make sure you apply for aid. Ask your parent(s) to gather up last year’s IRS form to help you. The WAFSA is Washington State’s own form to provide Need Grants / College Grants to students without legal immigration status. 

And, also remember to fill out applications for aid specific to the colleges or universities you are applying to. 

Want to stay close to home? Apply early to go to one of the Seattle Colleges. Remember, the Seattle Promise program will make attendance tuition free for most Seattle HS graduates.

Financial aid offers are being made based on last year's income and median. But, obviously the number of students whose family incomes have crashed will be far higher than the projected number of students who we expected to qualify. 

State revenue has also cratered to pay for the expansion and for the increased number of students who will need aid. We funded the expansion with a progressive tax on large businesses in tech that rely on higher ed investments and a business and occupation tax surcharge. 

The Legislature needs to examine additional progressive revenues when we come out of the immediate crisis so a generation of students doesn't lose their opportunity for postsecondary education.



Read more...

Student loan advocate weighs in on federal COVID-19 changes for borrowers

Friday, March 27, 2020


Olympia—Washington’s student loan advocate has guidance to help borrowers navigate federal changes related to COVID-19. 

This guidance is likely to change as a result of the federal response to this rapidly evolving situation.

The Department of Education's (ED) recent changes offer an opportunity for borrowers to get out of default for as little as $5 a month for a total of $45 over nine months.

Borrowers can work with collection agencies to enter a nine-month rehabilitation plan.

ED’s changes

As of 3pm on March 26, the U.S. Department of Education (ED) has made four changes that apply retroactively to March 13, 2020. They only apply to federally held student loans.

  1. Waive interest.
  2. Suspend payments.
  3. Stop collections on loans in default.
  4. Refund offsets to tax returns that were in process.
Learn more

The student loan advocate has published guidance for borrowers on the Washington Student Achievement Council’s (WSAC) webpage for COVID-19 resources. To get help from the advocate, borrowers that live in Washington can submit their request online via the state’s student complaint portal

Details on ED’s changes

Interest waiver

ED is waiving interest automatically, but it may take loan servicers up to a week to operationalize the federal government’s change. The waiver will apply retroactively.

Suspend payments

Student loan borrowers who can’t make payments because of decreased income have two options to lower or stop their monthly payments. They can contact their servicers and sign up for an Income Driven Repayment (IDR) plan, or they can ask for a deferment or forbearance on their loans.

Federal legislation may result in more changes. But for now, if borrowers can afford to make their payments, they should continue doing so.

Stop collections

For all defaulted student loans, ED will stop collections, wage and Social Security garnishment, and offsets to tax returns. ED has also instructed its contracted private agencies to halt all proactive collection measures—including phone calls and sending collection letters or billing statements.

Refund offsets to tax returns

Although ED has stated that it will refund any offsets that were in process as of March 13, it has not given a timeline for returning these funds to borrowers. ED is also relying on employers to comply with this new policy. Borrowers should contact their employers’ human resources contact and inform them this garnishment was lifted as of March 13, 2020.

About

The Office of the Student Loan Advocate is housed in the Washington Student Achievement Council. Student loan borrowers in Washington State can visit the Student Complaint Portal to submit a request for information or help. The Washington Student Achievement Council is committed to increasing educational opportunities and attainment in Washington.



Read more...

Don’t let coronavirus infect your investment strategy

Thursday, March 19, 2020

Suzan M. Shayler
EdwardJones - Shoreline

By Suzan M. Shayler

As you know, the coronavirus has become a major health concern, not just in China, but in other parts of the world, too – and it’s also shaken up the financial markets. As an individual investor, how concerned should you be?

The impact of the coronavirus on the markets isn’t surprising. China is the world’s second-largest economy, and when it experiences factory closures, supply chain disruptions and city lockdowns, the ripple effect on the world’s other economies is considerable. Plus, the financial markets simply don’t like uncertainty – and there’s a lot of that associated with this outbreak and the efforts to contain it.

Nonetheless, instead of worrying over events you can’t control, try to focus on what you can do in this investment climate. Here are a few suggestions:

  • Don’t panic. The coronavirus may well cause continued market volatility over the next several weeks, or even months. But it’s important for investors to take a long-term view. Market corrections – typically defined as a drop in investment prices of 10% or more – are a fairly common occurrence, and we may have been overdue for one even before the coronavirus scare. In any case, it’s generally a good idea not to radically revamp your investment strategy unless you experience a major change in your personal life – a significant career move, medical condition, change in family situation, etc.
  • Be aware of history. The coronavirus is certainly serious, but it’s not the only viral outbreak we’ve seen in recent decades. During these earlier pandemics, the financial markets also took a hit, but they bounced back. For example, from late April 2003, in the midst of SARS (severe acute respiratory syndrome) until late April 2004, the S&P 500 rose about 21 percent.* And other large gains were recorded following the outbreak and decline of the Ebola and Zika viruses. Of course, the past performance of the markets in pandemic situations can’t necessarily predict future market developments; every situation is different, and over the next year, returns might be modest, as prices have already soared in the 11 years since they bottomed out during the financial crisis of 2008-09.
  • Don’t try to time the market. We may well see coronavirus-based volatility in the near future – but volatility implies “ups” as well as “downs.” If you try to time the market by guessing at highs and lows, and then “buying high and selling low,” you might get lucky once in a while, but you could just as easily miss the mark.
  • Keep a diversified portfolio. In addition to avoiding efforts to time the market, you should also stay away from trying to pick “winners” and “losers” among individual investments in the marketplace of viruses. Instead, try to build and maintain a diversified portfolio, consisting of an array of different asset classes, with the allocation of these assets based on your risk tolerance and time horizon. Diversification doesn’t prevent losses or guarantee profits in a declining market, but it may help reduce the impact of volatility on your portfolio.

You may not be able to totally quarantine your portfolio from this serious virus in the short term, but by following a consistent, long-term investment strategy that’s appropriate for your individual needs, you’ll be doing what you can to help yourself move toward your financial goals.

*The S/P 500 is unmanaged, not available for direct investment and is not meant to depict an actual investment.

----
Information submitted by Shoreline resident, PTA Mom and Financial Advisor, Suzan M. Shayler
EdwardJones, 19270 Aurora Ave N, Suite #1,Shoreline, WA 98133. 206-542-2599



Read more...

Seattle and Washington state increase minimum wage

Thursday, January 9, 2020

Seattle and Washington state have both raised their minimum wages starting January 202. 

The state minimum wage will increase from $12 per hour to $13.50 per hour.

Seattle’s minimum wage will increase to $16.39 per hour for companies with more than 500 employees and $15.75 per hour for smaller companies where employees don’t earn $2.25 per hour in tips or medical benefits.

If employees do earn those benefits, they will earn $13.50 per hour.



Read more...

New law makes changes to retirement plans

Sunday, January 5, 2020

H.R. 1994 enacted by Congress
effective 2020

It might not have made the headlines, but a recently passed piece of legislation could affect the IRAs and 401(k)s of millions of Americans beginning in 2020. 

So, if you have either of these accounts, or if you run a business, you’ll want to learn more.

The new laws, collectively called the Setting Every Community Up for Retirement Enhancement (SECURE) Act, include these noteworthy changes:

Higher age for RMDs – Under current law, you must start taking withdrawals – known as required minimum distributions, or RMDs – from your traditional IRA and 401(k) or similar employer-sponsored plan once you turn 70 ½. The new law pushes the date to start RMDs to 72, which means you can hold on to your retirement savings a bit longer.

No age limit for traditional IRA contributions – Previously, you could only contribute to your traditional IRA until you were 70 ½, but under the SECURE Act, you can now fund your traditional IRA for as long as you have taxable earned income.

Limitation of “Stretch IRA” provisions – Under the old rules, beneficiaries were able to stretch taxable RMDs from a retirement account over his or her lifetime. Under the SECURE Act while spouse beneficiaries can still take advantage of this "stretch" distribution, most non-spouse beneficiaries will have to take all the RMDs by the end of the tenth year after the account owner passes away. Consequently, non-spouse beneficiaries who inherit an IRA or other retirement plan could have tax implications due to the need to take larger distributions in a shorter timeframe.

No early withdrawal penalty for IRAs and 401(k)s when new child arrives. Typically, you must pay a 10% penalty when you withdraw funds from your IRA or 401(k) before you reach 59 ½. But now, with the new rules, you can withdraw up to $5,000 from your retirement plan without paying the early withdrawal penalty, as long as you take the money within one year of a child being born or an adoption becoming final.

Some provisions of the SECURE Act primarily affect business owners:

Multi-employer retirement plans – Unrelated companies can now work together to offer employees a 401(k) plan with less administrative work, lower costs and fewer fiduciary responsibilities than individual employers now encounter when offering their own retirement plans.

Tax credit for automatic enrollment – The new law provides a tax credit of $500 for some smaller employers who set up automatic enrollment in their retirement plans. And a tax credit for establishing a retirement plan has been increased from $500 to $5,000.

Use of annuities in 401(k) plans – It will now be easier for employers to consider including annuities as an investment option within 401(k) plans. Previously, many businesses avoided offering annuities in these plans due to liability concerns related to the annuity provider, but the new rules should help reduce these concerns.

The SECURE Act is the most significant change to our retirement savings system in over a decade. 

You may want to contact your financial advisor, tax professional and estate planning attorney to assess the potential impact on your investment strategies and determine any possible tax and estate planning implications of the SECURE Act.

--Edward Jones article submitted by Micah K Blair CFP®, AAMS®, Edward Jones Financial Advisor, 621 B NW Richmond Beach Rd, Shoreline 98177. 206-542-4930



Read more...

Financial aid for college - completing the FAFSA

Sunday, December 8, 2019

High school student with FAFSA forms.
Photo courtesy Partnership for Learning

Completing the FAFSA (the federal financial aid application) is a key step toward earning a credential after high school. 

Doing so helps students understand the types and amount of financial aid available to them. 

However, only 54% of Washington state seniors completed the FAFSA in 2017 — among the lowest completion rates in all 50 states, according to the Washington Student Achievement Council. 

In this article from Partnership for Learning published in The Seattle Times, read more about the importance of the FAFSA (and the WASFA — the Washington Application for State Financial Aid), how it opens the door to credentials after high school, and what schools are doing to support students to complete the form.

Read the article




Read more...

Sustainable investing can pay off – in several ways

Sunday, November 10, 2019

By Desiree Hajek 
Financial Advisor, Edward Jones

Today, more and more people want their investment dollars to do some good in the world. Should you, too, consider sustainable investing? And if you do, must you accept weaker returns from your investments?

To answer these questions, you may want to have some background on sustainable investing. Sustainable investing is generally understood to include any investment process that uses environmental, social, and governance (ESG) criteria to evaluate investment merit or to assess the societal or environmental impact of investments. Below are four ways to differentiate sustainable investing funds.

ESG Aware – ESG criteria is one of many factors considered when selecting the individual stocks and bonds that make up a fund’s portfolio. In these strategies, investments that are poor performers on ESG criteria may still make it into the portfolio if other criteria, such as profitability or growth prospects, outweigh the risks associated with the poor ESG scores.

ESG Integration – These funds fully integrate ESG criteria into the investment selection process, favoring companies that are addressing the sustainability challenges facing their businesses and industries and/or avoiding companies that are not. There are many ways ESG integration can be implemented, from investing only in ESG best-in-class companies to companies that are making the greatest improvements in their ESG profiles.

Impact Investing – As the name suggests, impact funds are those that seek to deliver societal or environmental impact as a primary objective alongside financial return. So, for example, an impact fund may focus on investing in companies making measurable progress in key areas of impact, such as those outlined by the UN’s Sustainable Development Goals, which include clean water or reduced inequality.

Thematic Investing – Strategies in this category invest in companies involved in green industries, such as water, renewable energy and environmental services. These funds are more niche because of the thematic focus and typically have narrowly defined investment guidelines, which can reduce diversification and may not fit neatly into a traditional asset allocation framework.

Given the above categories, you can probably find many investment options that align with your own values and interests. But what about the performance? Should you be prepared to accept lower returns in exchange for exercising your preference?

Studies have shown that sustainable investments can perform just as well as their peers in the general investment arena. Of course, each investment is different, and when you invest, you can expect that prices will fluctuate, and you could lose some of the value of your investment. But this is true of all investments, regardless of whether they are considered sustainable.

Furthermore, you don’t have to operate in the dark about how well sustainable investments are doing, as several indexes track the performance of securities considered by the index provider to be sustainable. A financial professional can help you evaluate these types of investments to determine which ones might be suitable for your needs.

So, there you have it – you can do well by doing good. Whether you choose to follow a sustainable investment approach or not, it’s important to note that if you do, you won’t be putting a roadblock on the path toward your financial goals.



Read more...

Enrollment is open for Washington’s GET program

Sunday, November 3, 2019

Olympia—Washington State’s GET program is now open for a new enrollment period, providing families a fresh opportunity to start saving for future college costs while their children are young. The 2019-2020 enrollment period runs through May 31, 2020, with a unit purchase price of $121.

As a 529 prepaid tuition program, the state of Washington guarantees that a family’s GET savings will keep pace with in-state tuition and state-mandated fees. While GET account values keep pace with in-state tuition, beneficiaries have the freedom to follow their ambitions wherever they choose, as GET can be used at nearly any public or private university, community college, or technical school in the country.

The Guaranteed Education Tuition (GET) program opened in 1998, and since then, thousands of Washington families have saved billions of dollars to go towards their students’ future higher education expenses. To date, GET has distributed over $1.2 billion to more than 55,000 students who have used their GET accounts to attend college in all 50 states and 15 countries worldwide.

The GET program is one of two college savings options offered by Washington College Savings Plans (WA529). WA529 also opened the DreamAhead College Investment Plan in 2018 to offer additional flexibility for families as they plan for the costs of college. Families who want to start their college savings today may want to compare the features of these two plans to decide which savings approach, or mix of approaches, best fits their situation, timeline, and goals.

“Families often ask us when they should start saving for future college costs,” says Washington College Savings Plans director, Luke Minor. “Our response is simple: ‘It’s never too early to get started.’”

GET's website offers details, charts, planning tools and answers for questions that families may have about the program. Washington residents who want to help a student save for future education costs can open a GET account online with no enrollment fee. The GET Contact Center staff is ready to help at (800) 955-2318 or GETInfo@wsac.wa.gov.

About the GET Program

The Guaranteed Education Tuition (GET) program is Washington’s 529 prepaid tuition program that helps families save today for future college costs. The program offers a guarantee that is tied to in-state tuition prices and is backed by state law. It also offers tax benefits, flexible payments and a nationwide choice of colleges. 

GET, along with the DreamAhead College Investment Plan, a market-based 529 plan, represent Washington College Savings Plans (WA529). The Washington Student Achievement Council administers GET while the Washington State Investment Board oversees its investments. The Committee on Advanced Tuition Payment and College Savings governs the program.

Find out more about both plans at WaState529.wa.gov.



Read more...

Apply for financial aid to access Washington College Grant and other state, federal aid

Tuesday, October 1, 2019

October 1 marks the first day students can apply for financial aid to go to college in the 2020-21 school year.

Next school year is also when the Washington College Grant will be fully funded. The grant will give more money to more students for more kinds of education and training after high school.

Touted as one of the most generous and flexible programs in the country, it will help low- and middle-income people of all ages take their next step. 

The grant currently supports students pursuing certificates and degree programs. Beginning in 2020-21 it will also support people in registered apprenticeships.
Keep reading on our website.

About the Washington Student Achievement Council (WSAC)
The Washington Student Achievement Council is committed to increasing educational opportunities and attainment in Washington.



Read more...

LFP receives Distinguished Budget Presentation Award - their second

Wednesday, September 4, 2019

The Government Finance Officers Association (GFOA) awarded the Distinguished Budget Presentation Award to the City of Lake Forest Park for its 2019-2020 biennial budget. The City also received a Distinguished Budget Award for the 2017-2018 biennial budget.

The budget awards represent a significant achievement. They reflect the commitment of the City to meeting the highest principles in governmental budgeting. 

In order to receive the budget award, the City must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. A completely new budget document was created by the Finance Department for the 2017-2018 biennial budget to provide the additional transparency to the citizens of Lake Forest Park.

The two budget awards, along with 2016’s Stewardship Award from the Washington State Auditor’s Office, highlights the City’s continuous commitment to be on the leading edge of financial transparency.

Read more...

The Social Security Program’s Future -- and Yours May 30 at The Commons

Sunday, May 5, 2019

For more information on Social Security and what we can do to strengthen it for future generations, you are invited to attend a presentation by Puget Sound Advocates for Retirement Action. "Making Retirement Security Real for Everyone" will be held Thursday, May 30 at 7:00pm at the Third Place Commons at the Town Center at Lake Forest Park, 17171 Bothell Way NE, Lake Forest Park. For more information, call 206-261-8110.

Are you worried you're not saving a nest egg for retirement? Most likely your work doesn't provide a traditional pension, so you know you should be putting money into your IRA or your 401(k), but all your paycheck is being eaten up by housing, childcare, or student loan repayments. You have nearly zilch for your old age.

You are not alone. For many of us, Social Security -- our national old age and disability insurance program -- is our only backstop to prevent an impoverished old age.

On average, Social Security will replace 40% of annual pre-retirement income -- for those who can afford to wait till their full retirement age to begin collecting. But 2/3 of all Social Security recipients have not been able to wait -- meaning they have accepted much lower benefits for the rest of their lives.

Even those of us who currently expect to continue working well into our late 60’s and 70’s may well find that we can’t. We may have to drop out of the labor force due to disability or to care for a sick or disabled family member. Or we may get laid off.

A recent longitudinal study tracking people 50 and older found that over half of those who had been in stable employment ended up being laid off or “pushed out” before their planned retirement age. Only 1 in 10 ever found comparably paid employment again. Tech workers in particular may find that they have “aged out” at an even younger age.

The stability of the Social Security Program is becoming ever more critical.

It is no secret that the surplus in the Social Security Trust Fund is projected to be spent down by 2034, after which the program will have to operate on a strict money in/money out basis. Note that this does not mean the program is going broke! It only means that Social Security payments going out would have to be based on the amount of Social Security payroll taxes coming in, which could lead to a 21% reduction in benefits.

Congress can fix this! They have tweaked the program in the past and can do so again. Realistically, there are two broad directions Congress could take to address the issue. Either 1) reduce the benefits being paid out of the trust fund, or 2) increase the funds being paid into the trust fund.

Various proposals have been put forward to reduce benefits, most of which negatively impact younger people, such as delaying the age of full retirement (currently 67 for those born in or after 1960) to 69 or even 70. Since as noted above few people are likely to remain stably employed to 69 or 70, many of them will likely end up taking early retirement.

This means they will be forced to accept a reduced Social Security benefit -- currently as little as 70% of what they would otherwise get, but perhaps even less under new rules -- for life. For them, this “solution” would be worse than the problem.

The other alternative, to increase the funds being paid into the trust fund, has been gaining support. It generally involves raising or eliminating the cap on earnings subject to the Social Security payroll tax -- Federal Insurance Contributions Act, or FICA on your pay stub. (There is currently a cap of $132,900 per year; earnings above that amount are not taxed.).

The Social Security Administration's actuary has projected that eliminating the cap would not only stabilize the trust fund but allow for an increase in benefits. 

Representative John Larson (D-CT), the new chair of the Ways and Means Social Security Subcommittee in the US House of Representatives, has introduced the Social Security 2100 Act, which would preserve and expand the program, including "scrapping the cap"

Which direction will Congress take? Reduce benefits, which would primarily impact younger people? Or scrap the cap, which would primarily impact higher earners? Look for contentious debates in the coming election cycle!




Read more...

Furloughed federal workers should stay alert to avoid shutdown scams

Saturday, January 19, 2019


From the office of the Washington State Attorney General


Resources are available for federal employees in Washington who are furloughed or working without pay, and other workers who are affected by the partial federal government shutdown, to help them make financial decisions and avoid scams associated with the shutdown.

Consumers who wish to make a complaint to the Attorney General’s Office about a business operating in Washington State may do so HERE.

Payday loans and tax refund advances

If you have missed paychecks as a result of the shutdown, you may be considering loans or tax refund advances to help make ends meet.

Consumers considering payday loans or tax refund advances should thoroughly investigate the costs of the loan or advance and consider less costly options, which may include:
  • Obtaining a small loan from a bank or credit union. Many financial institutions are offering low- or no-interest loans to furloughed federal employees
  • Considering a short-term loan from a family member or friend
  • Asking your creditors for additional time to pay your bills
  • Freezing subscription services you can do without for a short period, such as streaming services or gym memberships

A payday loan is a high-interest, short-term cash loan. In most cases, a consumer gives the lender a post-dated personal check for the amount of the loan plus a fee. The lender holds the check for an agreed period (usually one to four weeks), then deposits it.

The fees on payday loans typically represent exorbitantly high interest rates. For example, if a lender charges a fee of $100 to make a $1,000 loan for two weeks, the annual percentage rate of the loan is 260 percent. This is more than 15 times as high as the average credit card rate of approximately 17 percent.

The Washington Department of Financial Institutions has additional information for consumers considering payday loans on its website.

A tax refund advance — also called a refund anticipation loan — is a type of loan offered to advance part of an anticipated tax refund to a consumer.

Such loans may appear attractive to taxpayers who are concerned about the shutdown delaying their tax refunds. 

However, these loans often come with fees that make them more expensive than they appear. Some tax preparers promote tax refund advances as free, but charge application or credit-check fees, or charge higher fees for preparing tax returns. Loans that anticipate the arrival of the refund (and repayment of the loan) by a certain date may have penalties that kick in if the refund is delayed.

The Federal Trade Commission has useful information on its website for dealing with debt.

Student loan repayment

The partial shutdown does not affect your obligation to make timely student loan payments.

If you are struggling to make your student loan payments during the shutdown, you should carefully consider your options. 

While you may be able to temporarily postpone making your payments through deferment or forbearance, doing so will likely increase your monthly payments when the forbearance or deferral period ends. 

This is because interest will continue to accrue on unpaid amounts, and you will have to pay interest on the unpaid interest going forward.

In addition, the U.S. Department of Education has warned borrowers working toward Public Service Loan Forgiveness that periods of deferment or forbearance will not count toward the 120 payments needed to qualify for loan forgiveness.

Borrowers concerned about falling behind on their payments should contact their student loan servicers to discuss repayment options. The U.S. Department of Education has additional information for furloughed federal employees on its website.

Telemarketing calls

Consumers should be extra vigilant about unsolicited or automatic calls from telemarketers and scammers during the shutdown because many of the federal agencies that regulate these calls are unavailable.

For example, the national Do Not Call list is not operating during the shutdown, so consumers cannot add their phone numbers to that list.

Consumers should not respond to unsolicited calls or texts offering loans or other solicitations related to the government shutdown, and should never give personal or financial information to such a caller. 

For example, telemarketing calls indicating to federal employees that they are pre-approved for loans that require nothing more than payment of a processing fee are likely not legitimate, as no reputable lender would offer loans without checking a borrower’s credit.

Unemployment benefits

Consumers should be wary of offers to expedite unemployment benefits for furloughed federal workers for a fee.

If you are interested in applying for or obtaining information about unemployment benefits, contact the Washington Employment Security Department (ESD) directly. ESD has a webpage that answers questions about unemployment benefits related to the shutdown, and can be reached by phone at 800-318-6022.

Fake job postings and work-from-home scams

If you are looking for temporary work during the shutdown, beware of fake job postings or work-from-home offers that require application fees or other costs.

Do some research about any company you are considering working for, and ask to speak to other employees. You can find information on any business entity in Washington on the Secretary of State’s website.

Consumers who wish to make a complaint to the Attorney General’s Office about a business operating in Washington State may do so HERE.

The Office of the Attorney General is the chief legal office for the state of Washington with attorneys and staff in 27 divisions across the state providing legal services to roughly 200 state agencies, boards and commissions.



Read more...

County Council passes budget

Wednesday, November 14, 2018

The County council completed eight weeks of deliberation on the proposed 2019-2020 King County Budget with Tuesday’s unanimous adoption of the $11.7 billion budget.

The budget includes an array of key measures:
  • The restoration of the gang unit, a vital law enforcement tool for communities affected by gang violence.
  • Increasing shelter space for the homeless while increasing oversight of funding for programs.
  • Taking steps to implement a low/no-cost transit fares for Metro’s lowest-income passengers with the goal of having the program in place by 2020.
  • Providing funds to help meet the region’s growing transit needs, including 200,000 hours in increased bus service throughout King County. There are also funds to study new transit options, including Seattle ferry services to and from Renton and Kenmore.
  • Examining the impact of the wastewater system on orcas and salmon

“This budget prioritizes investments aimed at ensuring everyone in King County has the opportunity to pursue their full potential. From housing investments, to expanding access to transit, to innovative criminal justice reform initiatives, this is a budget that puts our progressive values into action. I am honored to have participated in the budget leadership team that led the efforts to complete this work.”
  • --Councilmember Rod Dembowski
For more information, visit the budget page.



Read more...

Enrollment is open for Washington’s GET Program

Saturday, November 3, 2018

The state’s GET program is now open for a new enrollment period, providing Washington families an opportunity to start saving for future college costs while their children are young. The 2018-2019 enrollment period runs through May 31, 2019.

The Guaranteed Education Tuition (GET) program opened in 1998, and since then, thousands of Washington families have saved billions of dollars to go towards their students’ future higher education expenses. To date, GET has distributed over $1 billion to more than 50,000 students who have used their GET accounts to attend college in all 50 states and 15 foreign countries.

As a 529 prepaid tuition program, the State of Washington guarantees that a family’s GET savings will keep pace with in-state tuition and state-mandated fees. While GET account values keep pace with in-state tuition, beneficiaries have the freedom to follow their ambitions wherever they choose, as GET can be used at nearly any public or private university, community college, or technical school in the country.

The GET program is one of two college savings options offered in Washington State. Washington College Savings Plans (WA529) launched the DreamAhead College Investment Plan this summer to create additional flexibility for families as they plan for the costs of college.

“The best approach is to start early and save what you can, when you can,” says Washington College Savings Plans director, Luke Minor. “Set realistic goals and get the whole family involved.”

GET's website (get.wa.gov) offers details, charts, planning tools and answers for questions that families may have about the program. Accounts can be opened online, and the GET Contact Center staff is ready to help at (800) 955-2318 or GETInfo@wsac.wa.gov.



Read more...

LFP Residents: Take the Budget Survey through October 31, 2018

Tuesday, October 30, 2018

As the City Council continues consideration of the Mayor’s Proposed 2019-2020 Biennial Budget, there are only two more days to take the budget survey.

The survey is available online through Wednesday, October 31.

Thank you for participating in the process!

Read more...
ShorelineAreaNews.com
Facebook: Shoreline Area News
Twitter: @ShorelineArea
Daily Email edition (don't forget to respond to the Follow.it email)

  © Blogger template The Professional Template II by Ourblogtemplates.com 2009

Back to TOP