Changes to PERA, Social Security rates mean unfair 'pay cuts'

The recent announcement that Social Security withholding will be reduced to 4.2 percent from its previous 6.2 percent rate basically gives some CU employees a raise while others found their incomes reduced by the additional 2 percent PERA contribution.

As reported in the Staff Council story in the last newsletter (Feb. 9), the continuing budget shortfall brought up the mentioning of a possible 2 percent, across-the-board wage cut. Perhaps any wage adjustments should be focused only on those employees who pay into the Social Security system, because in actuality they would not be experiencing a "pay cut" as has already been felt by those in the PERA system.

Diane Streuer
Payroll and Benefit Services