Sunday, January 29, 2023

Pension Unguaranteed

 I started drawing a pension from IBM late in 2009 in the form of a single life annuity.  That is I will receive a fixed monthly payment for the rest of my life.  Initially less than half the monthly payment was guaranteed by the government through the PBGC.  However as I explained here over time this gradually increased until in 2017 the entire amount became guaranteed.  I had thought this meant I had nothing left to worry about (with respect to a default) however this was not quite correct.

Effective January 1, 2023 IBM paid the two largest insurance companies in the United States, MetLife and Prudential, to assume this pension obligation.  Each will be responsible for half presumably to spread the risk.  In the process the PBGC guarantee disappeared which I had not realized could happen.  There are state insurance guarantee funds which will provide some protection for these annuities but it appears that at least in some cases not for the full amount.  Although the risk of a default appears quite small it is a little disconcerting to be in any danger when I had thought I was totally safe in this regard.

Realistically the biggest risk to the pension value has been and remains inflation.  As of the end 2022 the value of my monthly pension payments as measured by the consumer price index (CPI) has decreased by 27%.  So the value has been slowly eroding.  Or over the last two years not so slowly as the decrease in value at the end of 2020 was only 17%.  Fortunately I have other financial resources.  However someone solely supported by a fixed income in retirement is quite vulnerable to inflation over time. 

Sunday, July 17, 2022

Thunderbird

As well as the hardware problems mentioned in my last post I also recently had a software problem.  Starting on Tuesday June 7, 2022 the default Windows 10 email program (Version 16005.14326.20970.0) starting displaying some of my received emails as unreadable markup language gibberish. Strangely my oldest machine using the default Windows Vista email program was still able to display these emails in a human readable format. Some internet research provided no clue as to what was going wrong or how to fix it.  So I decided to try the free email program Thunderbird.

Downloading Thunderbird was easy but getting it to communicate correctly with my Aol email server was a bit aggravating. If you make a mistake you can get into an unfixable state which requires erasing the Thunderbird folder in an obscure Windows directory and starting over. However with the help of considerable internet research and trial and error I eventually got things working.  Once set up correctly Thunderbird seems to work fine. The problematic emails are now readable.

So this problem ultimately wasn't a big deal. However it left me a bit annoyed with Microsoft. It is not to their credit that the Windows Vista email program seems to be superior to the Windows 10 one.  As well displaying emails correctly I prefer the whole user interface.  I much prefer the Windows Vista photo gallery program as well.  It seems like Microsoft figures that it doesn't pay to spend too much money on these sorts of basic functions. 

Sunday, July 10, 2022

Lenovo Chromebook 3

Early in 2020 I complained about a cracked screen on my HP notebook computer (model 15-b0015dx) which HP refused to fix under their warranty.  However I continued to use the machine for web browsing.  Besides the cracked screen the computer was prone to overheating and shutting down.  Perhaps this was causing long term damage as recently the disc drive appears to have progressively failed making the machine unusable.  The symptoms were as follows.  First the computer started closing some windows immediately after opening them.  This made some programs like Microsoft Solitaire unusable but others like the web browser continued to work normally.  Various purported remedies found on the internet failed to fix the problem but I didn't suspect a hardware issue at the time.  Then a few weeks later I noticed some of the icons normally on my desktop were missing.  I tried to reboot the computer to fix this but I ended up in the Windows Recovery Environment instead after some messages about automatic repair failing.  The recovery environment provides a MS-DOS window.  MS-DOS commands seemed to be working normally and I was able to save a couple files by copying them from the C: drive to a memory stick.  Then perhaps unwisely I tried running chkdsk.  This ran for over a day reported numerous errors and seems to have damaged my hard drive further.  When it finally finished MS-DOS could no longer find the C: drive making it hard to do much of anything.  Fortunately I had already saved the file I cared about most.       

My older Dell laptop which I had not been using much had failed more abruptly (probably also with a bad disc drive) a few months earlier so I needed a new machine for web browsing.  I ended up ordering a Lenovo Chromebook 3 - Model 82BA001FUS (11.6" HD Laptop - Celeron N4020 - 4GB Memory - 64GB eMMC - Onyx Black)  on sale from Best Buy for $79.  It was delivered a few days ago and I have been trying it out.

Chromebooks use Google's Chrome OS instead of  Microsoft Windows.  Together with a somewhat different keyboard layout this took a little getting used to.  It seems to work okay for web browsing the primary intended use.  However I don't (at least so far) find it as pleasant to use as the HP notebook (even with its problems).  The screen is noticeably smaller and displays less of a typical web page making for more paging up and down.  And I find the keyboard a bit awkward.  Although this is in part lack of familiarity.  It takes a little time to get used to using the alt key to emulate some of the missing keys (so for example delate is alt + backspace, page up is alt + up arrow and so on).  On the plus side the machine seems sturdier than the HP notebook and hopefully will hold up better over time.  The solid state drive is faster and may be more reliable than a mechanical disk drive but it offers considerably less storage and won't last forever as each memory cell can only be written to a limited number of times before becoming unreliable.

Bottom line I was attracted to this machine because of the cheap price and it seems functional.  However it is clearly low end, many people will prefer to pay more for a better machine.

Sunday, June 26, 2022

Gas Pains

Last Sunday (June 19) I filled up my gas tank.  This has been becoming more expensive recently and this time the bill was particularly steep, $69.41.  I suspected this might be the most I had ever paid for a fill up and as best I can tell this is correct.  I did pay over $65 four times in a row during the summer of 2008 but the most was $67.38 on July 26.  This was my previous record.  Of course adjusted for inflation the 2008 amounts would still be higher.  Somehow I suspect it won't take 14 years to beat the new record. 

2021 Taxes

 A rather belated report on my 2021 taxes.  As usual I was a little lazy about getting them done but ended up submitting the federal forms electronically early Monday morning April 11.  As I recall I mailed the New Jersey state forms on Tuesday.  My federal refund was deposited in my bank account April 27 which seems like a fairly normal delay.  Unlike last year it was for the expected amount.  A little annoyingly I owed New Jersey money, for some reason I had increased my federal estimated tax payments but not New Jersey's.  However my underpayment wasn't enough to trigger a penalty.  I continue to use TurboTax and had no notable issues with the software this time.

Sunday, February 13, 2022

South Brunswick Saker ShopRite Rant

Another rant this time about the South Brunswick Saker ShopRite supermarket.  Bottom line, their checkers should ring up sale prices correctly.  If they don't and this is later called to their attention they should cheerfully issue a refund for the difference.  Fortunately if they don't and you paid by credit card you may still have recourse.

After a long permitting and construction process a new Saker ShopRite supermarket opened a couple of years ago in Heritage Plaza (adjacent to Heritage Square) along Route 1.  ShopRite is a cooperative supermarket chain with stores in New Jersey and some nearby states.  Saker is their biggest operator with 39 stores many in central New Jersey.

The pandemic has made me reluctant to eat out and the new store is fairly convenient for me to get to so I have been shopping there sometimes.  Just before Christmas I bought a prime rib roast on sale for $4.79 per pound as advertised in their weekly mailed circular.  The shelf markings were not clear so I showed the ad to the checker to make sure I would get the sales price.  I was assured that I would.  I checked the receipt and saw I had received a discount but didn't notice until I got home that it wasn't sufficient to bring the price down to $4.79 per pound.  Apparently the checker should have scanned the ad in to get the full discount.  As it was I was overcharged by $14.83.    

When I returned to the store a week or two later I complained to the service desk about being overcharged.  I expected them to refund me the difference but they somewhat rudely refused to do so.  Although they accepted my version of events they claimed it was my responsibility to see that the sales price was rung up correctly.  Needless to say I disagree.

Fortunately since I had paid by credit card I had some recourse.  I challenged the charge with my credit card provider and yesterday they credited me with the $14.83.  It is unclear to me if my claim was actually adjudicated in any way (I was not asked for and didn't provide any details) or if the amount was too small for ShopRite to bother disputing.  Anyway I got my money.

It is somewhat baffling to me why ShopRite refused to refund the overcharge.  This was an advertised sales price which they should have expected to attract buyers.  Why incur ill will by trying to benefit from their checker's error?  Anyway I will be even more careful in the future.

Sunday, January 30, 2022

California Tax Board Rant

Next up in the rant department is the California Franchise Tax Board which is in charge of collecting California's income tax.  Bottom line, if you have a problem with your California taxes call the taxpayer rights advocate number.  Apparently it exists because the regular process is often an ordeal.

While I live in New Jersey my employer has a location in California where I have worked several summers most recently in 2019.  This requires me to file a non-resident income tax form with California and pay the appropriate tax on my California wages.  I use TurboTax to do my income taxes.  However TurboTax only includes one state income tax return.  Additional states can be purchased but being cheap when doing my 2019 taxes I filled out the California non-residence forms myself.  Unfortunately I made a small error.

My California return included form 540NR and schedule CA.  540NR is the main form, the purpose of schedule CA is to reduce your allowed deduction based on the ratio of your California income to your total income.  After completing schedule CA you were suppose to copy two numbers back to form 540NR, your California income and your California taxable income after your allowed deduction.  Unfortunately I only copied the second number back which is the only number used going forward (and the only number schedule CA tells you to transfer back).  As a result I left line 32 of form 540NR blank but everything else including the tax owed was correct.

A few months later California sent me a refund check for my entire tax paid in 2019 and a notice that they had changed my return.  Apparently some computer program had seen the blank line 32 and ignoring everything else in the return had deduced I had no California income and therefore owed no California tax.  This was remarkably foolish as any human reviewing the return would have seen easily that it was line 32 that was wrong not everything else on the return.  And I think it would be a good idea for to have a human review computer changes rather than automatically send out a check for the entire tax paid.  I expect it is pretty rare for people to work in California, have substantial taxes withheld from their wages, submit a return with an additional payment but nevertheless actually owe no California taxes.

I didn't cash the refund check because I knew it was sent in error and starting calling the California tax help number.  This involved long periods (a hour or more) on hold.  California supposedly had a call back system but unlike Amtrak's it didn't work properly, my phone would ring once and then go to voice mail.  Eventually I got through to someone but they were not very helpful.  For some reason although what had happened should have been obvious they required I submit a written explanation.  I did this but made another error in that I didn't include an entire corrected return.

After hearing nothing for months I called again and when I eventually reached a representative they disclaimed all knowledge of my letter of explanation, apparently because I hadn't precisely followed their amended return process it had just been thrown away.  So I sent another written explanation this time including a formal amended return.       

After another long delay California sent me a letter changing my tax owed back to the amount I had originally calculated adding interest and fees and demanding payment.  After trying and failing to reach someone at the regular help number I eventually tried the taxpayer rights advocate number.   This quickly reached a representative who put a hold on my account and told me that I could resolve the situation by returning the refund check (which fortunately I still had).  I did this.

After a long vacation I tried calling back the person I had talked to.  This took several attempts (apparently they don't check their voice mail) but eventually I got through.  California had received the returned check and this had in fact resolved the situation. I requested (and eventually received) a statement showing a zero balance. 

The whole experience was infuriating.  Liberals claim to be the good government party but they often show little interest in the (no doubt boring) job of making government work well.  Democrats claim that Republicans have kept the federal IRS underfunded and perhaps that is true.  But there is no such excuse for California, the Democrats have had complete control for a long time.  Nevertheless the California Franchise Tax Board appears to be totally incompetent.  Apparently good service just isn't a liberal priority.  This is shortsighted as it creates antigovernment feelings which reduces the popularity of the overall liberal agenda.