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.
You're right. So I'll fess up. I actually have a 20 year retirement in LE. But I was only with my department for 15 years. I bought five years military time, which was the maximum I could buy, so I get paid a 20 year retirement But during that 15 years, I was called up for military service in Afghanistan for 14 months. So I was only on the job for 13 years and 10 months, although I was credited with 15 years of service. And since I worked a week on/week off schedule, I was only on the job half the time, or six years, eleven months. So I say half jokingly that I only worked six years, eleven months to get a 20 year retirement.
Ah, ok. I wasn't willing to call you a "liar" but having worked as an administrator for a public pension fund, I knew there was more to your original story.
File under "Yet another straw (or bale of hay) of the tax burden/deficit being piled on the back of the working public".
That's ridiculous.
No it's not. Public employees have a percentage deducted from their pay towards their pension every month for all their years of employment. That is invested and earns returns and then is paid out a little at a time, like an annuity, so the bulk of the contributions are still in the market earning returns throughout the retiree's lifetime as he withdraws a set percentage for life. It's not like they just give it to you and charge the taxpayer. It's based upon historical market returns and actuarial data.
You do know that public employee's pay the exact same taxes that you do right?
File under "Yet another straw (or bale of hay) of the tax burden/deficit being piled on the back of the working public".
That's ridiculous.
This is the viewpoint of an uninformed few. Anybody that works 30 years of public service at (generally) below private sector salaries deserve a pension rate of 60% of salary.
You're right. So I'll fess up. I actually have a 20 year retirement in LE. But I was only with my department for 15 years. I bought five years military time, which was the maximum I could buy, so I get paid a 20 year retirement But during that 15 years, I was called up for military service in Afghanistan for 14 months. So I was only on the job for 13 years and 10 months, although I was credited with 15 years of service. And since I worked a week on/week off schedule, I was only on the job half the time, or six years, eleven months. So I say half jokingly that I only worked six years, eleven months to get a 20 year retirement.
Yeah that's what I thought. I knew there had to be some BS in there about the 7 years.
Last edited by TheShadow; 08-12-2016 at 11:09 AM..
No it's not. Public employees have a percentage deducted from their pay towards their pension every month for all their years of employment. That is invested and earns returns and then is paid out a little at a time, like an annuity, so the bulk of the contributions are still in the market earning returns throughout the retiree's lifetime as he withdraws a set percentage for life. It's not like they just give it to you and charge the taxpayer. It's based upon historical market returns and actuarial data.
You do know that public employee's pay the exact same taxes that you do right?
Every since the Fed has held interest rates to artificial lows, pension funds are not earning the expected returns as they did in the past. Public employees are guaranteed a certain return regardless of the markets and that's where the problem lies. You can't go on "historical market returns" anymore. Also, people are living much longer than in the past and these pension calculations were never intended for those who draw 30+ years as many do now.
And it's amusing how CalPERS loves to point out that the average pension paid out is only around $30k a year. What many do not understand is that the minimum time you need to pay in in order to draw out is 5 years. If you look at the CalSTRS pension there are some who draw a few thousand a year. That low amount skews the statistics since most in the system stay until retirement of at least 25-35 years and get huge payouts for life (including cost of living increases).
My wife teaches at a private school. She has been there for 30 years. When she retires next year her pension will be $800 a month. This is about 30% of her last salary amount. Is this common? Typical?
If you are getting a pension, how much is it in comparison to your previous earnings?
It is not bad.
I retired from the US Navy. I have a "50% pension", but that 50% of Base-pay, not take-home pay. Overall it is around 25% of my old paychecks.
^news flash, pension plans don't just invest in cds and stocks
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.
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.
