U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 05-21-2015, 07:56 PM
 
Location: MMU->ABE->ATL->ASH
9,135 posts, read 17,190,620 times
Reputation: 9987

Advertisements

Would be interested in knowing how you get 10%

My 401K is 3% per year

My Defined Pension "Points" are 1.45% per year, work for 30 year you get a 43.5% pension of your (Highest 12 months out of last 60 months),

(Use to be 2% dropped down to 1.65% then to 1.45% with changes to the plan over the years)

If I die before I start to draw my Pension they pay nothing.

Not counting any growth they make in the market investing the corporate pension fund. The amount I get is Defined, regardless of the Ups and Downs of the General Corporate Pension Fund (one of the reason, of many that Defined Pension are getting phased out. )

All "new" Hires (All new hires, and un-vested people as of 1/1/2000) get the beefed up 401K program, so the market risk is now the employees, not the companies)

Last edited by flyonpa; 05-21-2015 at 08:14 PM..
Reply With Quote Quick reply to this message

 
Old 05-21-2015, 08:17 PM
 
2,394 posts, read 2,069,252 times
Reputation: 1653
My pension pays 1.81 per year and uses the average of your highest 3 years. The required contribution is 11.5% with an assumed roi of 8.5% per year.

That is how I ball parked yours at about 10%
Reply With Quote Quick reply to this message
 
Old 05-21-2015, 08:39 PM
 
Location: MMU->ABE->ATL->ASH
9,135 posts, read 17,190,620 times
Reputation: 9987
Still not sure how you get 10%.

Don't forget to discount for the Dead bodies who they put money into the pension fund, who will never collect, or the
Un-Vested (In the grandfathered plan) you needed to work for 10 years before you became vested.

If you left the company before 10 years you got nothing. If you left after 10 year, you can not draw on the pension until you are 65, there is not discounted early draw available (More dead bodies from 55 to 65 who will not draw) You can "Retire" at age 55, and take a discounted pension, or delay taking and pick it up at at point, 70yo you are required to start taking it.

Any growth in the fund over the years (ROI) also reduces the "cash" need to be deposited, each year they recalculate, how much money they need to put into the fund to keep it actuarial sound. Annual reports have to filed with the Federal Government to show that the fund is sound.

Last edited by flyonpa; 05-21-2015 at 08:48 PM..
Reply With Quote Quick reply to this message
 
Old 05-22-2015, 05:13 AM
 
2,394 posts, read 2,069,252 times
Reputation: 1653
Okay with those factors it could be less than 10%. What do you think they need to contribute to fund it for you?

The reports should have the number
Reply With Quote Quick reply to this message
 
Old 05-22-2015, 07:31 AM
 
Location: Albuquerque, NM
1,431 posts, read 2,578,353 times
Reputation: 2551
My employer doesn't offer a match in the 457 plan (a 401K for government workers), but there is a fairly generous pension (2.5% x number of years of service x average of high 5 + COLA) if one makes it to full retirement age/years of service. The rub is that there is no early retirement -- you have to make it to FRA/years or there is no pension. Nada. You get your contributions back, plus interest, but there is no such thing as a "reduced pension for early retirement".
Reply With Quote Quick reply to this message
 
Old 05-22-2015, 07:40 AM
 
2,394 posts, read 2,069,252 times
Reputation: 1653
Wow- what government agency is that? 2.5 per year is very high though. That would require about a 16% of salary funding formula.
Reply With Quote Quick reply to this message
 
Old 05-22-2015, 10:35 AM
 
Location: Albuquerque NM
1,666 posts, read 1,534,612 times
Reputation: 3657
Quote:
Originally Posted by tom1944 View Post
Wow- what government agency is that? 2.5 per year is very high though. That would require about a 16% of salary funding formula.
A friend retired from State of Oregon at 2.5 percent and another from State of New Mexico with 2.35. Of course their salaries in those states were not so high.
Reply With Quote Quick reply to this message
 
Old 05-22-2015, 10:58 AM
 
2,394 posts, read 2,069,252 times
Reputation: 1653
Whatever your salary is the percentage to fund the formula to replace it does not change
Reply With Quote Quick reply to this message
 
Old 05-22-2015, 11:29 AM
 
6,637 posts, read 4,615,614 times
Reputation: 13351
100% match up to 5% on 401K.

No pension.
Reply With Quote Quick reply to this message
 
Old 05-22-2015, 01:40 PM
 
Location: Los Angeles area
14,018 posts, read 17,779,038 times
Reputation: 32309
I paid 8% via payroll deduction, employer also paid 8%. State of California kicked in about 2%. Employer's percentage has gone up some since I retired ten years ago, but don't remember the figures.

Edited to add for clarity: The payments went into the California State Teachers' Retirement System in order to fund my pension.

Last edited by Escort Rider; 05-22-2015 at 03:03 PM..
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top