Cypen & Cypen
DECEMBER 21, 2006
Stephen H. Cypen, Esq., Editor
1. FAA MAY CHANGE “AGE 60 RULE” ANYWAY:
The Wall Street Journal reports that Federal aviation officials are developing a new policy to allow United States airline pilots to remain on the job for up to five years past the current retirement age of 60. FAA Administrator Marion Blakely is developing this position, despite the fact that an FAA panel could not agree on whether to raise the age from 60 to 65 (see C&C Newsletter for December 7, 2006, Item 2 and C&C Newsletter for October 19, 2006, Item 2). The FAA’s apparent change of direction is influenced by the current tight global market for pilots, as well as lack of scientific data demonstrating any safety reason for not extending pilots’ careers. One compromise may be to mandate more extensive physicals and an increased level of scrutiny when a pilot turns 60. Foreign airlines and regulators are adopting similar changes.
2. IRS ISSUES FALL 2006 STATISTICS OF INCOME BULLETIN:
Internal Revenue Service’s Fall 2006 Issue of Statistics of Income Bulletin contains a detailed look at the 132.2 million individual tax returns filed for the year 2004, an increase from the 130.4 million returns filed for tax year 2003. The adjusted gross income less deficit reported on these returns totaled $6.8 Trillion, while taxable income totaled $4.7 Trillion. The Bulletin also contains six other articles, one of which shows that:
The Bulletin includes historical data on income, deductions and tax reported on returns filed by individuals, corporations and unincorporated businesses, with selected data presented for estates. Statistics are also presented on tax collections, including excise taxes by type, and refunds for recent years. (IR-2006-191, December 13, 2006).
3. ONE IN FOUR BOOMERS WILL NOT BE ABLE TO RETIRE:
The Baby Boom generation is now on the cusp of retirement, with the oldest Boomers 60 years old. According to a new Issue in Brief from the Center for Retirement Research at Boston College, as this huge generation makes its way out of the labor force, it will do so on much different terms than those offered workers over the past quarter century. The share of earnings replaced at any given age by Social Security and employer plans will be less. And that income stream will also be less secure. Many observers are thus concerned that Boomers will be unprepared for retirement. However, if Boomers can delay retirement, they can raise their retirement income far more than could workers in the past. Working longer has thus emerged as an important option for improving retirement income security. Employers have a unique perspective on whether workers are prepared for retirement and on when they will retire. Employer-sponsored defined benefit pension and 401(k) plans are the most important source of retirement income for the nation’s workforce, aside from Social Security. Moreover, employers must be able to predict when their older workers will retire in order to make effective staffing, training and promotion decisions. And if continued employment is to emerge as a viable response to retirement income shortfalls, employers must be willing to create opportunities for work at older ages. To gain the employer perspective on these issues, the Center conducted a nationally representative survey of 400 employers. The Brief reports on employer estimates of how many workers, currently in their 50s, will have the resources needed to retire at the organization’s traditional age and how many unprepared workers will respond by opting to extend their careers.
4. PUT YOUR HANDS WHERE I CAN SEE THEM; DROP TROU:
After wandering around a market for about a half hour, a young lady finally went to the register with her purchase, a 59¢ candy necklace, for which she offered 40¢. The store owner had been watching the girl, and knew that she had been shoplifting. He confronted her as she tried to leave the store, but she broke away from his grip just as police pulled up. At this point, the girl’s pants dropped to her ankles, weighted down by a potato peeler, ice cream scoop, set of measuring spoons, two cake decorating gel tubes and six Rollo candy bars. As usual, this piece comes form NewsDash’s “Friday Files.” [NewsDash, December 15, 2006]
5. QUOTE OF THE WEEK:
“Not everything that can be counted counts, and not everything that counts can be counted.” Albert Einstein
6. NOTICE OF VACATION:
Your editor will be on vacation, and so will the Newsletter. We will return with the January 11, 2007 edition.
We wish you and yours a very happy, healthy and prosperous New Year!!!!
Copyright, 1996-2006, all rights reserved.
Items in this Newsletter may be excerpts or summaries of original or secondary source material, and may have been reorganized for clarity and brevity. This Newsletter is general in nature and is not intended to provide specific legal or other advice.