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Thread: Paying for health care insurance has another side to it

  1. #10

    Default Re: Paying for health care insurance has another side to it

    I'm looking at my pension as a bonus, that I might or might not ever see. Given the rate of underfunded and disappearing pensions, I try not to think of it as my money.
    "All my life I have tried to pluck a thistle and plant a flower wherever the flower would grow in thought and mind." -- Abraham Lincoln

  2. #11
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    Default Re: Paying for health care insurance has another side to it

    Quote Originally Posted by BonnieJ2 View Post
    I'm looking at my pension as a bonus, that I might or might not ever see. Given the rate of underfunded and disappearing pensions, I try not to think of it as my money.
    If true, do you think we will see many less provident than you old folks on the street in the future?

  3. #12

    Default Re: Paying for health care insurance has another side to it

    I hope not. It's hard to say.
    "All my life I have tried to pluck a thistle and plant a flower wherever the flower would grow in thought and mind." -- Abraham Lincoln

  4. #13

    Default Re: Paying for health care insurance has another side to it

    I sort of like the idea of looking at your pension as a bonus. Unless you're under contract, a company-provided pension is merely a gift from your employer. it is their way of being nice. They don't HAVE to provide a pension for you (unless your contract stipulates, or you have paid into a system, in which case its a 401(k) or IRA, etc.). Pensions are kind of odd when you get down to their essentials. They are essentially paying you for not doing whatever that company does. When GM ran into problems with pensions a few years back, they found that they were paying more money to people who were retired than they were to people who actually worked there. They were spending more on retirees than they were on people makign cars. They paid people who weren't even making cars anymore!!!

    Just a thought.

  5. #14

    Default Re: Paying for health care insurance has another side to it

    Yeah, Skip, If that money is still there when I retire, I'm definitely taking it as a lump sum! I'm not trusting them to manage it.

    But actually, it shouldn't cost the company money for retirees, should it? I know that if I leave my accountafter I retire, it will only accrue interest. My company will not be contributing anymore.
    "All my life I have tried to pluck a thistle and plant a flower wherever the flower would grow in thought and mind." -- Abraham Lincoln

  6. #15
    Olympic Champ RYou's Avatar
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    Default Re: Paying for health care insurance has another side to it

    Big, since when are your taxes calculated after the healthcare deduction ? I have never met an emplyer that is allowed to deduct healthcare costs before taxes with the exception of a flexible healthcare spending account. That account is different than your healthcare / dental costs. Certain state disability tax costs can be deducted before taxes, but that is only against your state tax.

  7. #16
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    Default Re: Paying for health care insurance has another side to it

    If you have a flex account, that amount is lopped off your taxable wages, no? I assumed that's what Big is talking about.

  8. #17
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    Default Re: Paying for health care insurance has another side to it

    Quote Originally Posted by matclone View Post
    If you have a flex account, that amount is lopped off your taxable wages, no? I assumed that's what Big is talking about.
    The company I work for takes 2% of your pay for health care. That amount gets taken out before taxes. And by pension I meant social security money.

  9. #18
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    Default Re: Paying for health care insurance has another side to it

    I know you know this Big, but you're saving a lot of money up front by not having income or FICA taxes taken out of that 2%. And I don't know exactly how Soc Sec is calculated (so I could be wrong), but I'm guessing the reduced income won't have much of an effect on your pension.

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