Friday, June 05, 2009

What will you do with your "stimulus" check?

According to the AARP web site:
    "More than 52 million Social Security beneficiaries will today (May 7) begin receiving an extra $250 payment, as part of the effort to reinvigorate the American economy and boost consumer spending. The additional bonus check, which also will be sent to older veterans and railroad retirees, is part of the $787 billion American Recovery and Reinvestment Act—the so-called stimulus package—passed by Congress and signed by President Obama on Feb. 17.

    You won’t have to file any forms to get the money. Payments will show up through May as an extra check or an automatic bank deposit, depending on how you receive your benefits. Couples who are eligible will receive a total of $500.

    A spokesman for Social Security says those who usually get their benefit checks during the first week of the month will be the first to receive their additional payment, which could be as early as today.

    No one knows yet what recipients will really do with their $250, but that hasn’t stopped the Social Security Administration from asking. On April 9, the SSA posed the question on its website. So far, more than 4,000 people have responded. Their answers suggest that recipients are likely to go out and spend their windfall—exactly what the plan’s architects hoped for."
If you read my blog, you know I've been debating whether to even cash mine--I really can find no evidence in any of the government sites or government media that I am eligible. I don't receive SS, not on my own work account, and not on my husband's, because I receive a state teacher's pension. Back in the 1980s receiving both was declared double dipping--but only for teachers and state civil servants--private pensions weren't affected (but just you wait--I'm sure you too will be asked to save the system). So we called our accountant, and she didn't know either, but there was something new, that I hadn't seen. Apparently at one site, it is reported that people receiving FEDERAL pensions (but not SS) were eligible for the stimulus check. So we're extrapolating from that comment that STATE pensions also apply (civil service, teachers, etc.) Our accountant did say, however, that it is virtually impossible to give back a check from the government, even if they were wrong to send it.

OK, now what to do with it. I'd hoped to donate the entire amount to an organization that doesn't take government grants--so that wouldn't be most church run social services. So I was thinking our *local pregnancy distress center, PDHC--maybe a donation to honor the service of Pvt. William Long, whose death has been covered up by the hoopla over the murder of George Tiller, a man who killed thousands of babies through out his career. President Obama has not commented on Long's death by a Muslim terrorist, but expressed great concern over Tiller's death, which shows who his supporters are. But then last night's Channel 10 news reported that many Southern Ohio food pantries have closed, and they're sending our mobile Lutheran Food Pantry Truck once a week to help some of the smaller cities, like Ironton, which used to be a thriving town. The food banks, which depend on government surplus, warehouses, food processing plants and buy outs are stretched pretty far, and church members are taking up the slack. So I may divide my check by purchasing food for the food pantry to feed the children already here, and donating the remainder to save the children not born yet.

*Other cities in Ohio

7 comments:

Anonymous said...

The same in Canada where the military or police have their disability reduced when their CPP kicks in.

Deb said...

Norma, were you not insured for SS? I'm curious because I will get a teacher's pension but I am also insured on my on earnings record for SS. According to SSA, I can draw both, since I am insured uner SSA, but could not draw SS as a wife AND state teachers' pension. Is that the case in Ohio too?

Norma said...

It's called an offset. If you would get, let's say, $1500 in SS but only $1300 in state teachers, you could get $200 from SS--you will definitely not get the full amount. My STRS is more than my SS (either my own or my spousal), so I get nothing. It's similar to twice widowed who might qualify for two spousal benefits. You don't get both. Only certain pensions (teachers and state workers) are affected by this law. The people hurt the most are those who chose teaching as a second career, or who retired from teaching and then began a new career and are required to contribute to SS. You can get a GM pension and SS, but not a teacher's pension and SS.

Anonymous said...

Deb--some states do offer their teachers private options--possibly you have that. In Ohio I think at OSU in recent years you could choose TIAA-CREF as your pension plan, but that didn't carry health benefits the way STRS does. But it does get around the double dipping problem. Norma

Maggie Thornton said...

Norma, you are a great American!

Deb said...

Well, if that is the case, I will never be able to retire. Social Security gave me entirely different information. Why am I paying two pension plans but can only get one? I am being robbed.

Norma said...

Deb. Don't panic yet. Possibly your state has you contributing to both? SS has an "offset" and a "windfall" provision. Ohio doesn't contribute to SS for teachers. The problem is dual career people who already qualify for both. Go to the dot gov and read the fact sheet; but I've found that California has the best information.