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Old 08-18-2014, 10:29 AM
 
29,809 posts, read 34,894,042 times
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Quote:
Originally Posted by Larry Siegel View Post
Nobody. Their buddies get them promoted to chief so they can enjoy a year or so of high income at the end of their career, and the final pay is used as the basis for calculating the pension. In other words, it's a scam to take advantage of the pension formula.
I understand pension spiking but it is limited to a few at the top of the pyramid.
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Old 08-18-2014, 10:32 AM
 
29,809 posts, read 34,894,042 times
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The reality is that pensioners with a few exceptions wake up every day and put their shoes on the same as everyone else. Once a month they wake up with a smile knowing that money has been deposited in their account. Allow them that one day as they made the decisions that got them there.
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Old 08-18-2014, 10:48 AM
 
Location: SoCal desert
8,093 posts, read 13,244,051 times
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Quote:
Originally Posted by TuborgP View Post
I understand pension spiking but it is limited to a few at the top of the pyramid.
From March 3, 2014, Los Angeles Times:
"Such "salary spiking" was banned in 1993 by CalPERS, the state's largest public employee retirement system, to help control spiraling costs. But 20 of California's 58 counties including Los Angeles, Ventura, Orange and San Diego do not participate in CalPERS and their employees may legally continue to spike their salaries."

Hell, I'm in CalPERS and I think it stinks.

Full article here.
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Old 08-18-2014, 11:51 AM
mlb
 
Location: North Monterey County
3,194 posts, read 2,862,863 times
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Quote:
Originally Posted by TuborgP View Post
I understand pension spiking but it is limited to a few at the top of the pyramid.
We've had "double dippers" and spikers here for years..... During the reform - circa 2011 - that practice was ended.
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Old 08-18-2014, 12:54 PM
 
29,809 posts, read 34,894,042 times
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Quote:
Originally Posted by mlb View Post
We've had "double dippers" and spikers here for years..... During the reform - circa 2011 - that practice was ended.
Until we hit a boom period and critical shortages come up and they need to coax people out of retirement. Math teachers are a classic example. So much of this is cyclical. NC is starting to have problems with critical needs teacher shortages and restrictions on how much retiree's can work.
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Old 08-18-2014, 05:50 PM
 
6,353 posts, read 5,168,799 times
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Quote:
Originally Posted by NewToCA View Post
What 12% California state income tax??? You mean the rate that kicks in at $508K in taxable income for single filers, and $1,017,000 in taxable income for married filrers?

Tossing stuff like that in your posting really hurts credibility. A married couple in California with $100K in taxable income, after deductions and exemptions, pays about $4,500 in income tax.
I didn't realize I was under oath. I am in the 9.3% bracket and if I were single, I would be in the 11.3% bracket since my wife didn't earn any income. Rounding up to 12% doesn't seem like a big error. The decision makers who decide whether my clients etc. stay in California or move to some other, lower-tax state almost uniformly pay 13.3%. These are marginal, not average, rates, but the marginal rate is the deciding variable. One of my biggest clients moved to Texas.
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Old 08-18-2014, 07:01 PM
 
29,809 posts, read 34,894,042 times
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Quote:
Originally Posted by Larry Siegel View Post
I didn't realize I was under oath. I am in the 9.3% bracket and if I were single, I would be in the 11.3% bracket since my wife didn't earn any income. Rounding up to 12% doesn't seem like a big error. The decision makers who decide whether my clients etc. stay in California or move to some other, lower-tax state almost uniformly pay 13.3%. These are marginal, not average, rates, but the marginal rate is the deciding variable. One of my biggest clients moved to Texas.
Interestingly Texas has one of the very best pension funding levels in the country. Governor Perry us collecting both a pension and his governors salary.
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Old 08-18-2014, 08:24 PM
 
Location: Los Angeles area
14,018 posts, read 17,756,785 times
Reputation: 32309
Quote:
Originally Posted by Gandalara View Post
From March 3, 2014, Los Angeles Times:
"Such "salary spiking" was banned in 1993 by CalPERS, the state's largest public employee retirement system, to help control spiraling costs. But 20 of California's 58 counties including Los Angeles, Ventura, Orange and San Diego do not participate in CalPERS and their employees may legally continue to spike their salaries."

Hell, I'm in CalPERS and I think it stinks.

Full article here.
I am retired in the CalSTRS system and I know very little about CalPERS, which as you certainly know is a completely separate system. I am curious to know what about CalPERS "stinks", in your opinion. Is the basic pension computation formula not generous enough? Is your contribution amount withheld from your salary too onerous? Too many years required before vesting? Or perhaps some other factor(s)?
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Old 08-18-2014, 08:37 PM
 
Location: Long Island, NY
1,693 posts, read 2,062,032 times
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I saw on the news tonight that 36% of adults, and 26% of those aged 50-64 haven't started saving for retirement. Amazing!

36% of adults lack retirement savings, including many 65 or older - LA Times

I have a pension and had been maxing out my 401K contributions for the last 15 years. I can't imagine going into retirement without any savings.
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Old 08-18-2014, 08:54 PM
 
29,809 posts, read 34,894,042 times
Reputation: 11730
Quote:
Originally Posted by Chaser199 View Post
I saw on the news tonight that 36% of adults, and 26% of those aged 50-64 haven't started saving for retirement. Amazing!

36% of adults lack retirement savings, including many 65 or older - LA Times

I have a pension and had been maxing out my 401K contributions for the last 15 years. I can't imagine going into retirement without any savings.
Bada Bing!
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