Stimulus grant comes via tax return for some retirees

Before AFSCME intervened, the $250 one-time payment for seniors contained in the American Recovery and Reinvestment Act was originally targeted for those who receive Social Security. But thanks to successful lobbying by AFSCME International, public-sector retirees who are not coordinated with Social Security will also receive those funds. The legislation, referred to as “the federal stimulus,” was changed because of AFSCME’s tenacity.

Unfortunately there is a hitch. Social Security beneficiaries didn’t have to do anything to receive their $250; it came along with their regular Social Security checks. But retirees who did not pay into Social Security while working will have to file a special form on their federal income tax return to claim the grant. Retirees in that situation must file Schedule M—Making Work Pay and Government Retiree Credits—with Form 1040A or 1040.

Cook County, City of Chicago and state university retirees are among those affected.