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Need some advice on my scenario. I've worked at a County job for 22 yrs and just turned 52 yrs old. I may have an opportunity to get hired by another County in another State. At first, I was going to transfer my current retirement fund into another retirement account. I would then retire from the new job and add the new retirement fund with my old transfered fund.
Somebody just told me that I should wait until I get hired by the new County job. I will then need to turn in my letter of resignation to the old job. Instead, of doing that I was told to retire from the old job and then work fulltime at the new job. This would allow 2 incomes. I could see problems if I was looking for a job as a retiree, but I am currently working during the hiring process and will have to leave the old job one way or another. Any thoughts on this scenario? Remember that I do not pay into Social Security, so I don't think there is a cap on what I can earn while collecting my current retirement check. Also, I would be working for another County so it would'nt be considered 'double dipping.'
I would think since you are only 52 that you would be better off with your first plan, rather than deplete your current retirement fund so soon, assuming they let you "retire" at 52. As you say you don't have SS so what you have and what you earn on what you have and what you are able to add to what you have is what you will have to live on for as long as you do live.
Since you are under 55, from what I have read, alot of these government jobs are changing these types of pension benefits for anyone under 55, so you might not get the same deal from them as you have now. States can't afford it. I would be very cautious.
Cautious on what? I was planning on retiring at 55 and work part time.
Now I have a full time job offer with a slight pay cut. Move
from southern ca to las vegas nv. Figured I'd draw the ca pension now.
If I decided to retire from vegas in 5 yrs that low vegas pension
would make up the ca pension loss difference from 51 yrs to 55 yrs.
First, I assume you'll be getting a pension from your current employer and have a retirement fund in lieu of SS. What is the retirement age for your current job? If you're "retiring early," will your pension be reduced?
What was proposed to you is commonly done. Many police and fire employees can retire after 20 years with full retirement benefits. They then go on to work another job, either private or government, and earn a second retirement benefit.
You should also consider moving your retirement fund into a rollover IRA. The main reason for doing so is that you'll have more investment choices and lower fees.
We can retire with full pay at 62. if I retire early, my check would be lower due to lower contribution and not from a penalty. I was thinkin of drawing the retirement along with my new lower salary job. Both amounts would be double the take home pay monthly. The portion I dont use I could put in the new 457 plan. If I leave it in ca, I get 2.5% interest gwice a year on the prior 6 mo balance. i would live off the new salary and use part of retirement for a house down payment savings.
Appreciate all these perspectives. My target retirement is still 55 years old in 3 years. I calculated if I left my job now for the new job, it would give me 22.19 yrs of service.
draw pension in 2014 at 53 yrs old = $145 more gross per mo
draw pension in 2015 at 54 yrs old = $290 more gross per mo
draw pension in 2016 at 55 yrs old= $435 more gross per mo
I would probably have to work 5 yrs at new job to receive a small pension that would be added to the above current pension.
Need some advice on my scenario. I've worked at a County job for 22 yrs and just turned 52 yrs old. I may have an opportunity to get hired by another County in another State. At first, I was going to transfer my current retirement fund into another retirement account. I would then retire from the new job and add the new retirement fund with my old transfered fund.
Somebody just told me that I should wait until I get hired by the new County job. I will then need to turn in my letter of resignation to the old job. Instead, of doing that I was told to retire from the old job and then work fulltime at the new job. This would allow 2 incomes. I could see problems if I was looking for a job as a retiree, but I am currently working during the hiring process and will have to leave the old job one way or another. Any thoughts on this scenario? Remember that I do not pay into Social Security, so I don't think there is a cap on what I can earn while collecting my current retirement check. Also, I would be working for another County so it would'nt be considered 'double dipping.'
My strong advice is to make sure you have considered other fringe benefits most notably health care. What are the retirement health care benefits with your current job and how long do you need to work there to become fully vested in those benefits. Likewise how long would you need to work in a new county job to become fully vested in benefits there? You could find yourself without health care benefits in either case unless you work 25-30 years in a new job. I have known many folks who switched county or state jobs to another jurisdiction and benefit system and regretted it later. Make sure if you haven't already that you have considered your current pension plan and how benefits are paid and the relationship between benefits and service years. In many systems buying service time can be extremely expensive especially as we get older. Coming into a new system now might depending of the state/local put you on a lower tier of benefits or a higher tier of contributions than those with more tenure. There are a lot of variables and you will get different advice from different people depending on their familiarity with the variables and there personal perspective. How long would you have to work in the new job to be fully vested in their pension system and would you be contributing to Social Security there which would create another layer of variables. Again I know folks my age who are still working because the switched government jobs later in their careers and now regret it. Also remember where will you be on the totem pole regarding seniority if that is factor with the public sector still being strained.
Appreciate all these perspectives. My target retirement is still 55 years old in 3 years. I calculated if I left my job now for the new job, it would give me 22.19 yrs of service.
draw pension in 2014 at 53 yrs old = $145 more gross per mo
draw pension in 2015 at 54 yrs old = $290 more gross per mo
draw pension in 2016 at 55 yrs old= $435 more gross per mo
I would probably have to work 5 yrs at new job to receive a small pension that would be added to the above current pension.
Per parts of my above post. Note the difference in monthly benefits at age 55 comapared ot 53. That may be for a couple of reasons which you would know. Having reached the full eligibility age of 55 or having 25 years of service in. Those are often public pension thresholds. The difference in pension payouts from age 53 to 55 is a jump of $290 per month or about $3480 per year. With COLA compounding over the years that can become a chunk of change down the road difference. Would you even be vested in a new retirement system with only about 3 years served? There are a number of retired former public employees from Calif in the forum. They can probably give you specific info about benefits and eligibility for in California to help you decide.
Vesting refers to the time period necessary for you to work in order to earn the right to receive a retirement benefit. For example, once you have attained 5 years of service we consider you "vested" in the system and eligible to receive retirement benefits at age 65. Vesting also occurs at other time periods such as 10, 20, 25 and 30 years, which makes you eligible to receive benefits earlier than age 65.
[quote]A34. I have accepted a position for a Nevada public employer, is it possible to transfer my service from another public retirement system into PERS?
Quote:
A38. When can I retire?
Info is in link, to spread out to post here.
If you follow the link you can go back to the Homepage for the Nevada pension system. If this isn't the appropriate one for the job you are seeking than I am sure you can find that one. I use this just to illustrate the point that if you only work 3 years in Nevad you get no pension from the way I read it and if you work 5 and become vested you have to wait until age 65 to claim it. That could do a number on your anticipated income. I hope the info is relevant and helpful.
Last edited by TuborgP; 12-22-2012 at 07:31 AM..
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