Posts Tagged: IRS

California eyes federal ‘Super PACs’

Money in the halls of power. (Illustration: Kentoh)

by J.T. Stepleton posted 01.08.2018

FollowTheMoney: California established a separate classification for federal Super PACs to better facilitate disclosure of activities in state elections. Once a Super PAC raises $2,000 or more to influence a race for state office, it must file reports with the state that clearly identify both the funding behind the activity as well as detailed information about the specific political activity.

Ask Emily: Health and taxes

Tax form image via California Healthline

by EMILY BAZAR posted 02.24.2017

K.A. Curtis gave up her career in the nonprofit world in 2008 to care for her ailing parents in Fresno, which also meant giving up her income. She wasn’t able to afford health insurance as a result, and for each tax year since 2014, Curtis has applied for – and received – an exemption from Obamacare’s coverage requirement and the related tax penalty, she says

Calpensions: President Obama said he has directed his labor department to propose rules showing states how to create what in California could be an “automatic IRA,” a payroll deduction that puts money into a tax-deferred savings plan unless workers opt out. The rules are expected to answer a key question: Is Secure Choice exempt from a federal retirement law, ERISA, that not only has employer administrative costs but may also expose employers to liability for failed investments and other problems?

Pensions have role in UC’s competitive edge

The campus of the University of California, Berkeley. Photo: LAgirl5252

by ED MENDEL posted 05.21.2015

Calpensions: In the competition for top talent, the University of California has been able to offer something increasingly rare among leading private universities: a generous lifetime pension. Now a much lower cap on pensions for new UC employees is part of an agreement to freeze UC resident tuition for two years announced last week by Gov. Brown and UC President Janet Napolitano.

CalPERS has denied membership to nine charter schools, saying a proposed IRS rule could end crucial tax advantages if “even a single non-governmental entity” is allowed into the giant pension system. The association said the California Public Employees Retirement System is the only public pension system in the nation to deny membership on the basis of an IRS rule. (Photo: Coolcaesar, Wikipedia)

It had a name, Secure Choice, and now an attempt to create the first state-run “automatic IRA” for workers with no retirement plan has its first donors, authorization to hire consultants and a favorable response from a wide range of groups asked for advice. The author of the program, Sen. Kevin de Leon, D-Los Angeles, may become the next leader of the state Senate. So the plan being developed by a nine-member board could have a strong advocate when it comes back to the Legislature for approval.

But a series of state court rulings are widely believed to mean that the pension offered current workers on the date of hire becomes a vested right, protected by contract law, that can only be cut if offset by a new benefit of comparable value. Santa Clara County Superior Court Judge Patricia Lucas said in her ruling the question before her court is “one of law, not of policy,” referring to a state Supreme Court response to city and county briefs on an Orange County attempt to cut retirement costs.