Alabama Living June 2013

Page 10

Power Pack

Rural electric leaders attend national, state meetings Electric cooperative leaders from across the country, including some 100 from Alabama, gathered in Washington, D.C., April 29-May 1 for the National Rural Electric Cooperative Association’s 2013 Legislative Conference to learn the latest developments on many issues, including the Rural Utilities Service loan program, coal ash and water heater efficiency. Rural electric leaders from Alabama met with congressional staff during the week to discuss issues pertaining to the state. The 66th Annual Meeting and Trade Show of the Alabama Rural Electric Association (AREA), April 10 and 11 in Montgomery, drew more than 400 electric cooperative leaders and supporters from around the state. AREA’s board of directors named new officers to its board including the board’s first female chairman, Patsy Holmes, a director from Central Alabama Electric Cooperative; vicechairman, Randy Brannon, manager of Pea River Electric Cooperative; and secretary-treasurer, David Hembree, a director from Cullman Electric Cooperative. During the meeting, 39 co-op directors from ten Alabama cooperatives were recognized for completing Advanced Board Leadership Certificates. Speakers included Bill Johnson, president and CEO of the Tennessee Valley Authority; Agriculture Commissioner John McMillan; Jeremy Oden of the Alabama Public Service Commission; Mike Bird of Federated; Spencer Collier,

More than 400 electric cooperative leaders and supporters from across the state attended AREA’s annual meeting.

director of the Alabama Department of Homeland Security; and Alabama Director of Transportation John R. Cooper. Sen. Clay Scofield was named State Senator of the Year by the association for his contributions to the rural electric program. Rep. Mac McCutcheon was named State Representative of the Year. Cary Hatcher of Wiregrass Electric Cooperative was awarded the 2013 Darryl Gates Communicator of the Year Award. WTVY-TV and WDHN-TV of Dothan each received the 2013 Award for Media Excellence for their well-rounded, balanced and unbiased coverage of electric cooperative activities. The Alabama Rural Electric Association of Cooperatives is a federation of not-for-profit electric cooperatives, which provide dependable electricity to more than 1 million Alabamians in 64 counties.

Public employees: Know your benefits By Kylle’ McKinney

We have important information that should be of interest to public employees. If you work for an employer who does not withhold Social Security taxes from your salary, such as a government agency, the p ­ ension you get based on that work may reduce your Social Security benefits under the “Windfall Elimination Provision.” This provision affects how the amount of your retirement or disability benefit is calculated if you receive a pension from work where Social Security taxes were not taken out of your pay. We use a modified formula to calculate your benefit amount, resulting in a lower Social Security b ­ enefit than you otherwise would receive. Why a modified formula? The law requires we determine Social Security 10  JUNE 2013

benefit amounts with a formula that gives proportionately higher benefits to workers with low lifetime earnings. Before 1983, people who worked mainly McKinney in a job not covered by Social Security had their Social Security benefits calculated as if they were long-term, low-wage workers. They had the advantage of receiving a Social Security benefit representing a higher percentage of their earnings, plus a pension from a job where they did not pay Social Security taxes. Congress passed the Windfall Elimination Provision to remove that advantage. In addition to the Windfall Elimination Provision, there is another reduction that could make a difference in benefits a spouse, widow, or widower

can receive. If you pay into another pension plan and do not pay into Social Security, any spouse, widow, or widower benefits available through Social Security may be subject to a Government Pension Offset. Generally, if government employment was not covered by Social Security, any Social Security benefits must be reduced by two-thirds of the government pension amount. To learn more about the Windfall Elimination Provision, please read this fact sheet: www.socialsecurity.gov/ pubs/10045.html. To learn more about the Government Pension Offset, please read this one: www.socialsecurity.gov/ pubs/10007.html. Kylle’ McKinney, SSA Public Affairs specialist, can be reached in Montgomery at 866-593-0914, ext. 26265, or by e-mail at kylle.mckinney@ssa.gov. www.alabamaliving.coop


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