New Online Class Being Launched to Help Federal Employees Understand Impact of 2010 Alaska Locality Pay Transition

The 2010 transition to Locality Pay will have serious impact on taxes and retirement plans for more than 12,000 federal employees in Alaska. Overwhelming demand has prompted Plan-Your-Federal-Retirement.com to create a special new online class to help federal employees understand what this change means to their current pay and federal retirement.

Anchorage, AK (PRWEB) November 9, 2009 -- A new online class will help separate myth from fact for Alaska's federal employees. Plan-Your-Federal-Retirement.com will be launching a special online class to help federal employees in Alaska understand the impact of the transition to Alaska Locality Pay.

A new law that takes affect on January 1, 2010 will have a huge impact on the take home pay and retirement plans of more than 12,000 of Alaska's federal employees.

The law mandates the transition from a special Cost of Living Allowance (COLA) to Locality Pay. While both COLA and Locality Pay are designed to supplement the salaries of federal employees - the supplements are treated differently when it comes to taxes and federal retirement.

Currently, federal employees get a tax-free COLA to supplement their salaries. This COLA is not included in the calculation of their federal retirement pension. Locality Pay is included in the retirement pension formula, but it is subject to income taxes.

Bottom line: Locality Pay means higher pensions and higher taxes for federal employees in Alaska.

In the bill, Congress stated that it was their intent that this change not result in a reduction of take home pay for federal employees. However, they confirmed that the "the legislation does not take into account each individual employee’s tax situation. "

"Federal Employees in Alaska can expect major changes to their pay and retirement benefits." said Micah Shilanski.

Micah Shilanski is a financial planner who specializes in federal employees. Earlier this year, Shilanski founded http://www.Plan-Your-Federal-Retirement.com as a national website to help federal employees understand their retirement benefits.

"I've received so many questions from federal employees on Locality Pay. And I was shocked to find how much mis-information was out there on this topic. So much of what they have heard about this transition was just not true." said Shilanski.

"We're talking with our clients one-on-one about this issue. But because of the individual attention we give our clients - we can only take on a select few. And this bill affects so many."

"This issue is so important to so many federal employees in Alaska, and I've gotten such an overwhelming amount of questions on this bill that I'm putting together a special online class on COLA to Locality Pay."

Shilanski has been interviewing key federal employees in Alaska to get a list of their concerns on the transition to Locality Pay.

The special online class will focus on helping federal employees in Alaska understand the facts behind Alaska Locality Pay. The class will cover how the transition from COLA to Locality Pay will affect their financial situation now, and in retirement.

Micah Shilanski is uniquely qualified to help federal employees. Shilanski teaches classes on federal retirement benefits. He also works as a financial planner for federal employees. "I know the federal retirement system, and I know how to help my clients make the best choices for their personal situation." said Shilanski.

"At the end of this special class, I want federal employees to feel good about understanding how Alaska Locality Pay will affect them." added Shilanski.

The class is expected to be available in the coming weeks. Federal employees in Alaska are encouraged to visit the COLA to Locality Pay section of http://www.Plan-Your-Federal-Retirement.com. They can reach this section directly by following the link to http://www.plan-your-federal-retirement.com/alaska-locality-pay.html

About Plan-Your-Federal-Retirement.com:

http://www.Plan-Your-Federal-Retirement.com is a nation-wide website providing information that every federal employee needs to know about their retirement. Their goal is to help federal employees understand their retirement benefits and avoid mistakes when planning for their retirement.

About Micah Shilanski:

Micah is a CERTIFIED FINANCIAL PLANNER™ who specializes in helping Federal Employees get the most out of their retirement benefits. More information about Micah's experience is available at www.Plan-Your-Federal-Retirement.com/financial-planner-for-federal-employees.html.

Shilanski & Associates, Inc. is an independent financial planning firm in Anchorage, Alaska, that has been in business for nearly 30 years. Securities offered through Summit Brokerage Services, Inc., 980 N. Federal Hwy., BocaRaton, FL 33432, Member FINRA/SIPC. Shilanski & Associates, Inc. is not affiliated with Summit Brokerage Services, Inc.

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