Portland police pension system broke IRS rules
According to this document, Portland's unfunded police and fire pension system overpaid its beneficiaries for years when it "grossed up" benefits to cover state income taxes on those benefits. Now the system is kneeling before the IRS with hat in hand, to see how it can correct the mistakes and get the overpayments back from the recipients. If the IRS doesn't go along with the city's proposal, the city will have to go back to the drawing board, because if the correction isn't made, the pension accounts will be taxed like a simple bank account, which would be a major disaster.
| Posted at 8:45 AM | Permalink |
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Comments (9)
Sniff, Sniff... I smell a lawsuit!
Posted by dman | October 6, 2010 9:44 AM
Bureaucratic incompetence, or worse, is now supposed to be rectified by demanding the overpaid money back from the recipients?
Posted by none | October 6, 2010 10:19 AM
Why do I have this feeling that my property tax bill is about to increase ... ?
Posted by Garage Wine | October 6, 2010 10:32 AM
OMG! Udder stupidity!
Posted by Lawrence | October 6, 2010 10:44 AM
Move along, nothing to see here. It's just business as usual!
Posted by Lothar | October 6, 2010 12:20 PM
Oh so many targets... where was the city auditor while this was being done? Where was the independent auditor while this was being done? Where was the city's attorney while this was being done? Who made this decision? Can they be held accountable? Who went along with this decision? Can they be held accountable?
Posted by LucsAdvo | October 6, 2010 1:15 PM
OK, so not only is it easy to get a disability (they only need their own doctor to say OK and no one can contest it), but we also pay for the OR tax on their benefits.
Dear god, no wonder Hurley was afraid to sue for having to work a desk job after we paid for his re-education as a chef.
This is the financial version of a perpetual motion machine.
Posted by Steve | October 6, 2010 2:04 PM
"Seek a retroactive Charter amendment
from the voters that would
permit the overpayments."
This sounds tantalizing.
Posted by Steve | October 6, 2010 2:22 PM
Lots of benefits that these guys get and they are laughing all the way to the bank. Kinda reminds me of robbery.
Posted by Bluecollar Libertarian | October 6, 2010 5:13 PM