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The other thread got me thinking about how everyone lumps all the plans together without understanding the different terms that exist. I thought it might be interesting if people posted about the pension they have so that people could see what is out there.
NJ- in 1980 my pension was going to be based on a calculation of 1 year over 60 (1/60) 0r 1.67 for every year worked multiplied by your final 3 year average salary (overtime would not count). For that I was to contribute 3.2% of my pay. In 2001 the plan was granted a 9% increase so the calculation became 1/55 or 1.8%. My contribution was increased to 5% and then to 5.5%. In 2011 the contribution was increased up to 7.5% which was phased in over several years.
New hires do not get the 1/55 they get 1/60 with the formula using the last 5 year average salary. They contribute 7.5%.
Under my plan you could retire at 55 without penalty if you have worked 25 years. If you retired before 55 the pension was reduced 3% a year. If you want to leave your spouse the pension there is a reduction based on the spouses age and what % of the pension you select to continue.
The average retiree is 61.9 years old and the average pension is $31,000.
Alaska pension (PRS & TRS) has undergone major changes in the last 8 years or so. The old system that many employees still fall under, grants you a defined benefit after 20 years of service based on the average of your three highest years of earnings. Say you averaged $100k in those three years, then after 20 years you would be eligible to retire on 40% of that or $40,000 per year. If you put in 25 years, it would be about $55,000 plus then you would get free health care thrown in as well.
Now the new system is in place for workers who hired on in the last 8 years and it is simply a matching 401k defined contribution plan type of savings account for retirement. The employee also is on the hook for all health care costs in retirement. It's a much less favorable plan for the worker.
In Florida right now employee contributes 3% and earns 1.6 per year. You can retire after 30 years or age 62. Early retirement from those two conditions is a 5% loss per year.
After 30 years you would get 48% of the average of your five highest earning years.
Ours (Utah) is non-contributory....altho my employer pays into the state retirement fund for me. We do not pay into Social Security (they opted out in the 80's). My employer as of this year does not match nor contribute to our 401K.
I'm a Tier I employee (hired before 2011) so my pension is years of service x 2% of the average of my three highest earning years - which hopefully will be in the next 4.75 years.
In Florida right now employee contributes 3% and earns 1.6 per year. You can retire after 30 years or age 62. Early retirement from those two conditions is a 5% loss per year.
After 30 years you would get 48% of the average of your five highest earning years.
I think new hires after July 1, 2011 are vested in the defined pension plan after 8 years ( up from 5, although when I first started working for the state it was 10 years), and their earliest age for retirement under the FRS is 65.
Contributed 7.5% of my salary. Retirement calculation was based on years worked in state x 2.5 and years credited (purchased) from out of state @ 2.0. My total was 22 in state + 10 out of state. (22 x 2.5) + (10 x 2) = 75 That percentage (.75) was multiplied by average of 3 highest years of salary, minus a 9% hit because I left earlier than 35 years total. All I know is that it's enough to live on comfortably and I'm no longer tied to the trenches of the job, which I loved at the time and up until retirement.
No matter what the pension system must pay the cost which is getting like SS; hard to do has boomers retire. Quite easy when massive numbers of boomers where paying in like SS. That is why we are seeing reforms as most do not allow other funding if they run short; just like SS. There isn't even any fund to cover if they go under like private pensions;sadly.
Retired under the old federal government Civil Service Retirement System, which was replaced in the mid 1980's.
Our plan withheld 7% from our paychecks, with matching employer contributions. It has been awhile since I looked at it, but I believe the benefits were calculated as 1.5% for each of the first 5 years of work, 1.75% for the next 5 years of work, and then 2% after the 10th year. Full retirement was granted at age 55.
I'm glad you started this thread, and hope it has decent participation. I find it rather strange and annoying that I can't find any type of website (so far) that shows a comparison of governmental pension plans.
No matter what the pension system must pay the cost which is getting like SS; hard to do has boomers retire. Quite easy when massive numbers of boomers where paying in like SS. That is why we are seeing reforms as most do not allow other funding if they run short; just like SS. There isn't even any fund to cover if they go under like private pensions;sadly.
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