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Article: Lump-Sum Option Lives
- Article from:
- The Washington Post
- Article date:
- February 16, 1989
- Author:
CopyrightThis material is published under license from the Washington Post. All inquiries regarding rights should be directed to the Washington Post. (Hide copyright information)
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Many of the 300,000 to 400,000 retirement-age federal workers
will pull the plug this year if Congress abolishes the popular
lump-sum pension payment option.
In 1987, more than 48,000 retirees took $1 billion in lump-sum
payments. Although they were identical to the retirees' previously
taxed pension plan contributions, the government said only a tiny
portion of each lump sum represents the retiree contribution. As a
consequence, retirees in 1987 paid more than $300 million in taxes on
their lump-sum checks.
Many budget cutters see the lump-sum option as a drain on the
federal retirement program. They would like to plug it up this year.
The option has been available since mid-1986. ...