Briefing to House Minority Whip Steny Hoyer

Yesterday, I provided a briefing about financial literacy initiatives to House Minority Whip Leader Steny Hoyer at the Maryland’s 5th Congressional District Women’s Network Advisory Committee (WNAC,) “Women Surviving in Challenging Times,” meeting on Tuesday, Feb. 21 at the Clarion hotel in Waldorf, Maryland.

The purpose of the briefing was to provide an overview of the committee’s annual activities and outcomes related to community assessments, job readiness, financial literacy, food assistance, social services, community collaborations, young professionals and federal dollars at work.

As a member of WNAC, I summarized that the eight women who provided a first-hand account of challenges women face during the WNAC “Breakfast with Women” on Feb. 18, 2011, shared how their current financial challenges affected financial security and independence, credit, and ability to make ends meet. Women seek to expand their financial literacy to learn skills that will help them set goals, manage money, budget and make wise decisions for their families.

Additionally, I highlighted an innovative financial literacy project in Calvert County, called the Financial Stability Community Impact Council, formed by the United Way of Calvert County which partners with business leaders, citizens, and agencies with the 10 year goal to reduce the number of lower income working families who are financially unstable from 36% to 18%. I along with other members of WNAC serve on this council. One of the impact partners is Northern High School’s Future Business Leaders of American (FBLA) and the program is called ‘Dollars and Sense,’ which teaches FBLA students the fundamentals of financial literacy and partnering with Chesapeake Cares Food Pantry at the free tax clinics to assist individuals in setting goals toward debt reduction.

Only six counties in the state of Maryland and two counties in Southern Maryland require a financial literacy credit to graduate high school, including Charles and Calvert.

Pictured left to right: (front row) Christine Parker, Karen Smith-Hupp, Sue Apple, Annette Funn, Kim Carrington, and Delores Datcher; (back row) Gladys Jones, Betty Richardson, Kathleen O’Brien, Congressman Steny Hoyer, Jennifer Mooreland, Ella May Russell, Nikeshi Free, and Patricia Morris.

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Saturday Catch of the Day – Retirement News for Women

Catch of the Day - 2LIVEWELL Blog

Future Federal Employees On the Hook. A deal was struck in congress on Friday to keep certain tax cuts and benefits from expiring at the end of this month. They included extending a 2 percent social security payroll tax cut for employees from the normal 6.2 percent, extending the unemployment extended benefits program and keeping the Medicare reimbursement rates for doctors.

Richard Rubin and Kathleen Hunter writes that Senator Ben Cardin (D-MD) struck a last minute agreement with President Obama that the increased pension payments would come from future federal government employees, not existing ones. Bloomberg. 17 Feb. 2012.

Jolie Lee writes that federal workers hired next year, after December 31, 2012, will pay a higher pension contribution rate of 3.1 percent to subsidize the 2 percent social security payroll tax cut for employees. This higher rate is 2.3 percent above the current .08 percent contribution rate for federal workers. Federal News Radio. 17 Feb. 2012.

It’s a little refreshing to see congress actually compromise and cut a deal in lieu of letting these provisions expire. However, the benefits will cost the federal government now and the off-set won’t be realized until 2013. Additionally, the 2011 Budget Control Act, signed into law in August to address the budget deficit crises, includes automatic federal work force reductions in 2013. How many new federal workers will actually be hired next year to help pay for this extended social security payroll tax cut?

If you are a lucky employee and do receive the 2 percent social security payroll tax cut, the tax savings is as much as $2,202 this year because the maximum taxable earnings in 2012 is $110,100. The formal at the normal employee social security payroll tax rate is: [$110,000 x 6.2% = $6,826.20.] The formal at the reduced 2% employee social security payroll tax rate is: [$110,000 x 4.2% = $4,624.20]

If you are an unlucky federal employee, under the Civil Service Retirement System (CSRS,) which was replaced in 1987 with the Federal Employees Retirement System FERS, you may not pay into social security and therefore are not eligible for the 2 percent social security payroll tax break.

We all know the long-term sustainability of the federal government entitlement programs must be addressed, like Social Security and Medicare. By congress extending the social security payroll tax cuts (less money paid into social security,) it makes me wonder how serious they are about fixing the bigger problem.

Content Catch of the Day is a fresh summary of essential retirement planning news about how to retire and when to retire, hand-picked by personal finance expert for women Christine Parker, CERTIFIED FINANCIAL PLANNER ™ for women of Southern Maryland.

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Prince George’s opposes financial literacy graduation requirement – Maryland Schools Insider – The Washington Post

Prince George’s County School Board cannot afford to fund a financial literacy program in the high schools to ensure every student learns basis money management skills that are essential to live-learning. Have we not learned anything from the greatest recession of our lifetime? Our children and grandchildren cannot afford to be deprived of these basic everyday life skills.

Maryland State Comptroller Peter Franchot has initiated efforts state wide, encouraging school boards to adopt a program that would require high school students to take financial literacy course as part of their graduation requirement.

It was three years ago, Feb. 10, 2009 that the late Charles County Board member Charles Carrington asked his fellow Board members at the time to explore making financial literacy a requirement for high school seniors. Beginning in 2011-2012, financial literacy is now a graduation requirement for Charles County public high school students, previously the classes were offered as an elective.

Young adults need financial literacy to develop good personal finance skills to make informed decisions and achieve financial success. When students are engaged early on in learning; particularly about earning an income, budgeting, saving and investing, charitable giving, and managing debt — they gain powerful skills to shape their own lives and make a difference in their local community. That’s why Parker Financial, LLC is dedicated to rewarding local students who have successfully advance their financial literacy through the Charles County Scholarship Fund – Parker Financial Literacy Scholarship.

Prince George’s opposes financial literacy graduation requirement – Maryland Schools Insider – The Washington Post 9 Feb. 2012.

Do you like this post? Subscribe to the 2LIVEWELL blog to receive advice and tips about how to retire and when to retire, hand-picked by personal finance expert for women Christine Parker, CERTIFIED FINANCIAL PLANNER ™ for women of Southern Maryland.

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