Discrimination has existed toward some seniors in Indiana for 36 years. A senior who receives average annual Social Security of $16,000 pays no Indiana State or county income tax on that income. A Civil Service retiree in Indiana receiving the same amount of retirement income pays 3.4 percent State income tax and, on average, an additional 1.43 percent county tax on all but the first $2,000 (and in some cases on that, too) for a total of $676 yearly. That is $676 yearly that a Civil Service retiree doesn't have for prescriptions, groceries, utilities, property taxes and other expenses. This is a lot of money when you are living on a fixed income.
All retired federal workers want is fairness, the same treatment most Indiana seniors already receive. There is no objection to the income tax exemption received by seniors on Social Security or Railroad Retirement. Indiana lawmakers need to correct this gross unfairness in the upcoming legislative session and treat all seniors the same.
Two bills were previously introduced to begin corrective measures. If you are a Civil Service annuitant or active federal employee, please call our Indiana state legislators - 800-382-9842 (House) and 800-382-9467 (Senate). Ask these legislators to actively support these retired Indiana seniors. If you need more information, please feel free to call me 812-923-3626.
Happy Holidays to retirees and their families everywhere.
President of the Indiana Federation of Chapters (INFED)
New Albany, Indiana Chapter 1777 State Legislative Chair -
Member of the National Active & Retired Federal Employees Assn. (NARFE)