Got a pension? What is it in comparison to your last paycheck? (payment, relationship)
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Again - I must tell you all - If you work for an entity that does not pay into Social Security - the statement they send you is WRONG.
I am going to be penalized for working - for a low wage - for an entity that does not contribute to Social Security.
That statement I get says I will get $1200 a month. Not gonna happen.
Why do you think you won't get $1200/mo.? That's an average benefit, and about what you would get if you spent many years not contributing to the system.
It depends on whether the 40+ years of paid into SS included 30 years of paid in substantial earnings. If this is so, then there will be no reduction due to WEP. Here's a link that includes a table of what is considered substantial:
On a second read of your post, since his state job paid into SS, his SS won't be reduced.
I thought WEP only applied to federal workers. My brother-in-law retired on 50% active duty pay after 22 years in the army. He spent the next 20 years running a successful contracting business. He put all the company earnings in my sister's name and paid SS to her account, because he knew that the system would cut his SS benefits because of his military pension. My sister was a teacher, and her teacher's pension has no effect on her SS check.
I thought WEP only applied to federal workers. My brother-in-law retired on 50% active duty pay after 22 years in the army. He spent the next 20 years running a successful contracting business. He put all the company earnings in my sister's name and paid SS to her account, because he knew that the system would cut his SS benefits because of his military pension. My sister was a teacher, and her teacher's pension has no effect on her SS check.
Nope. WEP applies to State workers and retirement also.
I'm still waiting to hear if my employer sponsored 401K (through ICMA - International City Management Association Retirement Corp.) will affect my benefit. SS was "unclear" on that as my employer has contributed a 6.5% of my salary - not a match - to that account up until 2 years ago.
I still have money in CalSTRS (California teacher pension) and have access to their calculators. So I have an old colleague who retired this year. She is 60 and worked for 35 years. Her salary this year is 110k (can see that on transparentcalifornia.com) . She will receive 78% of her final salary or $85k. There are teachers who retired a few years ago that get much more than that as they put in 30 years prior to 1/1/11. Their pensions are listed by name on that same website. Yes, California is unusual with its high payouts but they do exist. And I do think that $85k a year with cost of living increases guaranteed for life is a big deal as most people with 401k's get no guaranteed returns.
When I looked at the pension list there is one man who has been receiving a large pension since 1989. I don't think pension plans were designed for such lifetime payouts.
I agree that $85,000 per year is a huge pension pay-out.
As for your former colleague, if her current salary is $110,000, then she must have been promoted to administrator (assistant principal or principal). I would be quite surprised if any California public school teacher makes $110,000. When I retired (California) in 2005, my final year's salary was just shy of $60,000. If I were still working in the same school district, it would be only slightly higher now; they have had a few small raises in the past 11 years.
What gripes me about examples such as yours is that people read them and then assume that $110,000 is a typical Calif. public teacher's salary, while in actuality it isa true anomaly if it exists at all.
Last edited by Escort Rider; 08-14-2016 at 03:18 PM..
And that might not be the salary her pension is based on.
My brother is a teacher and makes $120,000 but only 86,000 is pension eligible. He coaches 3 sports, runs a summer program and covers certain duties before and after school which he gets paid for but does not earn pension credits for.
There was another thread where someone commented on the high salaries. I found the article being referred to and discovered the quoted number included the value of benefits. That portion doesn't count in the pension formula.
Again my experience has been that I make less than I would in the public sector. I don't get any bonuses that I used to get annually. Yes, there are some that make more than the private sector, but I can't think of many in my area (finance, data analysis) that make less than I do, that have the experience that I have in my general field...
I thought WEP only applied to federal workers. My brother-in-law retired on 50% active duty pay after 22 years in the army. He spent the next 20 years running a successful contracting business. He put all the company earnings in my sister's name and paid SS to her account, because he knew that the system would cut his SS benefits because of his military pension. My sister was a teacher, and her teacher's pension has no effect on her SS check.
It applies to any entity that opted out of Social Security. Most are state retirement systems, but there are cities that are part of the state retirement system. In my own case, I worked for a state that did not pay into SS and I worked for a city that was part of the state retirement system, but paid into SS.
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