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Old 08-16-2014, 01:21 PM
mlb
 
Location: North Monterey County
3,180 posts, read 2,856,112 times
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My municipality pays into the state retirement for for us - but we do not pay into Social Security. My SS check will be reduced about 40%.

When the bottom fell out of the economy the Legislature changed the state pension to a two tier system. Those hired after July 2011 get less of a benefit 1% instead of 2% for those hired before. They are paying more into a 401K for those 1% folks - and for us we have no 401K match anymore.

The math for me is years of service x 2%. That percentage of the average of my three highest earning years is what I will get annually. COL raise is determined in the first year. You get exactly that same amount every year after.

We have a retiree health plan - but it essentially is hours not claimed in sick leave up to maybe 54 a year. It was just instituted a couple years ago - so no big windfall.

Most everyone is riding it out until Medicare these days anyway.
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Old 08-16-2014, 02:53 PM
 
Location: SoCal desert
8,093 posts, read 13,232,688 times
Reputation: 14870
Quote:
Originally Posted by mlb View Post
I have heard of California pensioners taking home 100K a year.
Only the idiots that make the news.

From CalPERS:
As of June 30, 2013:
Retirees/beneficiaries/survivors receiving a monthly allowance 574,759
Average monthly service retirement for state members $2,918 ($35,016 annual)
Average monthly service retirement for school members $1,675 ($20,100 annual)
Employee contributions $3.9 billion
Employer contributions $8.1 billion

None of the above includes teachers – that’s a different system all together.
None of the above includes police – that’s a different system all together.
None of the above includes firefighters – that’s a different system all together.

Last edited by Gandalara; 08-16-2014 at 03:41 PM..
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Old 08-16-2014, 03:30 PM
 
71,563 posts, read 71,730,589 times
Reputation: 49165
We are here on vacation in montreal now.

The locals tell us they are quite happy with both the medical and pension system here and wouldn't want any part of our system.
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Old 08-16-2014, 03:49 PM
 
Location: Gorgeous Scotland
4,123 posts, read 4,748,743 times
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Quote:
Originally Posted by mathjak107 View Post
We are here on vacation in montreal now.

The locals tell us they are quite happy with both the medical and pension system here and wouldn't want any part of our system.
Similar to the NHS in the UK. I'd never want the US system again! I love the NHS.
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Old 08-16-2014, 05:40 PM
 
Location: Forests of Maine
30,682 posts, read 49,449,101 times
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I can not complain about my pension.

It gives me nearly a minimum-wage income, and it provides very good healthcare coverage.

At least I do not pay into Income taxes.
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Old 08-16-2014, 09:06 PM
 
Location: Los Angeles area
14,018 posts, read 17,737,509 times
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Quote:
Originally Posted by mlb View Post
My brother "retired" after 20 years in the Wisconsin state pension system - he worked for UW Madison.

He gets $1000 a month.

I have heard of California pensioners taking home 100K a year.

I will hopefully have 27 years in my state pension system - 30K a year.

Not all pensions are alike.
Well, yes, there are some of those California pensioners but they are not typical, as another poster has already perceptively pointed out.

I just want to add the reason some of those pensions are that high, and that is because those people were managers and were making high salaries. In the case of teachers, the individual might have been a principal or other administrator, but they are still part of the same retirement system.

My California teacher's pension started out at $53,300 per year gross after 34 years of service. It is now more than that nine years later because of cost of living adjustments. That is plenty for me to live on and I am NOT complaining; on the contrary I feel fortunate to have it. However, it is hardly lavish or excessive, especially after 34 years.

Your final sentence sums it up nicely: "Not all pensions are alike".
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Old 08-16-2014, 11:18 PM
 
Location: SW Florida
9,756 posts, read 7,035,798 times
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Quote:
Originally Posted by Submariner View Post
I can not complain about my pension.

It gives me nearly a minimum-wage income, and it provides very good healthcare coverage
At least I do not pay into Income taxes.
I can't say the same. Because of other household income ( my husband's pension, SS income, and income from part-time contract work I do as an educational consultant), our taxes are fairly high. There's no withholding on my contract wages, so I have extra taxes withheld from my state pension ( that's the easiest way for us to do it). That's to pay for the federal income tax, ( we don't have a state income tax here), and the Social Security and Medicare deductions from my contract work- at a rate of about 14%, since there is no employer contribution to those.

But we have it, so I guess I shouldn't complain that it's taxed.
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Old 08-17-2014, 05:20 AM
 
4,189 posts, read 4,398,526 times
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Quote:
Originally Posted by TuborgP View Post
How many cities might that be period? How many outside of California? States? Federal Government?
Fed pensions don't matter since the Feds just print more money, but the states and cities are in a real bind.

Pandemic of pension woes is plaguing the nation.

There is a lot of abuse and just plain fraud in the many pensions.

Westchester, Rockland officers claim disability pensions but rack up overtime

The cities and states are not dealing with the reality that the private sector did years ago. We are not a wealthy nation anymore and the tax base is not there to support lavish pensions or in some cases a basic pension.

The Coming Pension Meltdown: The 10 Most Troubled City Systems


The best solution is to rid themselves of the pension system and just let the employee(s) fund their own pension.
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Old 08-17-2014, 05:41 AM
 
2,394 posts, read 2,062,739 times
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How do they rid themselves of the pension system?
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Old 08-17-2014, 06:38 AM
 
Location: Forests of Maine
30,682 posts, read 49,449,101 times
Reputation: 19134
Quote:
Originally Posted by Travelassie View Post
I can't say the same. Because of other household income ( my husband's pension, SS income, and income from part-time contract work I do as an educational consultant), our taxes are fairly high. There's no withholding on my contract wages, so I have extra taxes withheld from my state pension ( that's the easiest way for us to do it). That's to pay for the federal income tax, ( we don't have a state income tax here), and the Social Security and Medicare deductions from my contract work- at a rate of about 14%, since there is no employer contribution to those.

But we have it, so I guess I shouldn't complain that it's taxed.
It sounds like your enjoying significantly higher gross income, than what I have. It is not surprising that you would be paying income taxes.

You are still working. What about when you retire?
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