Clinton Committed To Older Boomers

The Clinton Administration is renewing its commitment to an early Medicare buy-in for older Baby Boomers who otherwise would be unable to secure health insurance.

In a telephone roundtable last Tuesday, U.S. Labor Secretary Alexis Herman fielded questions from a dozen newspaper editors across the nation.

I asked her what the chances are that Congress next year will make Medicare coverage available to Boomers who are getting up in years and to other older workers downsized or forced into early retirement. Many such senior workers can’t find new jobs that offer group health care benefits. Often they also are unable, at that age, to buy affordable individual insurance policies in the open market.

“A proposal of the type you describe was included in the president’s budget last year,” Herman said in answer to my question. “It was defeated.

“This administration feels very strongly about the need, and we remain committed to the issue. I am not at liberty to say at this time what will be in the president’s budget proposal in February, but I can assure you that we want to work with Congress on addressing this major concern.”

You can increase your retirement contribution

Want to put more money into your employer-sponsored retirement plan this year?

There are just three days left to do so, reminds the Institute of Certified Financial Planners.

Some companies allow employees to kick in a lump-sum amount at the end of the year if the individual is still under the maximum limit allowed by law and the plan, be it a 401(k), 403(b) or similar retirement vehicle.

Another thing you might want to review, planning professionals advise, is how well your account is performing.

“You shouldn’t normally make changes just because the market is going up or down,” counsels the institute. “But you might want to change some of the investment vehicles you are using, such as a particular stock mutual fund, if it seems to be consistently underperforming its peers.”

Also, you may want to talk to your employer if you feel the number and variety of investment choices are too limited.

Veterans will receive cost-of-living raise

More than 3 million war veterans are receiving a hike of 1.3 percent in their benefit checks this month.

With this annual cost-of-living adjustment, 2.3 million beneficiaries of the Veterans Affairs Department will receive disability payments ranging from $96 for a single veteran with 10 percent disability to $1,989 for full disability.

Veterans with service-connected disabilities of 30 percent or more may also receive additional allowances for dependents, the VA says.

Another 357,000 wartime veterans with permanent and total disabilities not connected to military service will receive an increase in their income supplement pensions.

In addition, about 331,000 survivors of veterans who died of service-connected disabilities will receive the increase. These are parents, spouses and children who receive compensation under the VA’s dependency and indemnity program.

Some 195,000 surviving spouses of wartime veterans whose deaths were unrelated to service or a service-connected condition and whose incomes are below an established threshold will benefit as well from the increase in death pension benefits.