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Old 08-06-2017, 10:01 AM
 
29,794 posts, read 34,894,042 times
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Quote:
Originally Posted by mathjak107 View Post
there is more to it than just being a public employee. my wife gets both
So do the me and the wife.
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Old 08-06-2017, 10:04 AM
 
29,794 posts, read 34,894,042 times
Reputation: 11715
Quote:
Originally Posted by otowi View Post
I've had to pay into every pension fund - either through voluntary contribution or it coming right out of my paycheck. I am disappointed that I am not allowed to collect on SS even though I am vested and paid in, etc., - because I am a public employee.
Did you also pay into SS the full time?
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Old 08-06-2017, 10:43 AM
 
10,604 posts, read 14,217,570 times
Reputation: 17203
Free.

It was the phone company.

Pension
401K
Profit Sharing

and more - full benefits.

That's why I just had to eyeroll the past 10 years when the internet was laughing at and lecturing the old fogies how stupid it was to stay at one company.

Look who's laughing now.
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Old 08-06-2017, 11:52 AM
 
Location: Las Vegas
13,893 posts, read 25,347,447 times
Reputation: 26389
I don't think there is any such thing as a free pension. I didn't contribute to mine but the company included it in our benefits package and we were always being told the value of our benefits so it was part of my compensation and one of the big reasons I worked there for 30 plus years. It's an OK pension but not as good as what lots of others get. I get between 1/3 and 1/4 of what I used to make.
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Old 08-06-2017, 09:39 PM
 
Location: Wasilla, AK
7,286 posts, read 4,158,066 times
Reputation: 15745
Quote:
Originally Posted by otowi View Post
I've had to pay into every pension fund - either through voluntary contribution or it coming right out of my paycheck. I am disappointed that I am not allowed to collect on SS even though I am vested and paid in, etc., - because I am a public employee.
You need to determine how many years of substantial earnings you've had. Then the Windfall Elimination Provision will apply. Contact SSA to get a definitive answer.
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Old 08-07-2017, 08:48 AM
mlb
 
Location: North Monterey County
3,194 posts, read 2,862,863 times
Reputation: 4896
Quote:
Originally Posted by MadManofBethesda View Post
If you've paid into Social Security and have earned at least 40 quarters, then you will be eligible for Social Security. If you are a public employee who earns a pension based on work in which SS deductions were not made, then the computation of the amount you receive from Social Security will be reduced in accordance with the Windfall Elimination Provision (WEP) unless you have 30 years of Social Security coverage. But under no circumstances can WEP wipe out your SS benefit.

This. There's a WEP calculator on the SS page. I did not have 30 years of substantial earnings under the definition of what SS considers "substantial". But I did have my 40 quarters when I came to my current job which opted out of SS in 1984.

Recently did the calculator and will get over $1000 a month from SS at Full Retirement age (66)

I have worked since I was 15. That helped.

I work, however, with people who have never contributed to SS - or don't have the 30 years.... and they will probably get 40-50% of the standard monthly SS.

There also are employees who opted out of Medicare (godforbid)..... who allowed that anyway?
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Old 09-12-2017, 07:29 AM
 
290 posts, read 298,314 times
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Quote:
Originally Posted by MadManofBethesda View Post
No, I'm sorry, that is incorrect. You need 5 years of civilian service in order to qualify for a FERS annuity. Your military time can then be added to that to give you 9 years of credible service toward your annuity.
Does this calculation of civilian service include time in Peace Corps or AmeriCorps if the employee buys it back? For example, one year in AmeriCorps would then only need four years at your new civilian employer to get the deferred pension.
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Old 09-12-2017, 07:59 AM
 
Location: Albuquerque, NM
1,428 posts, read 2,573,856 times
Reputation: 2536
I'm still working. State government. My pension factor is 2.85% of my high five for every year worked. For that I pay in almost 10% of my gross income every paycheck. There is no option for a 401K with matching in lieu of pension. There are 457/403(b) options for additional retirement savings. This is not a free pension. It also involves working for pay in the first quartile compared nationally. There are always trade-offs.

I also pay into Social Security.

As for the "free" pensions, I had one of those from when I worked in insurance in the private sector. It was a company I was with about 7 years. I got a letter a few years back that they were offering to cash out the pension. It was about $24,000 cash value at that time, or something like $85 a month when I turned 65. I took it and rolled it into my IRA.
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Old 09-12-2017, 08:04 AM
 
659 posts, read 325,772 times
Reputation: 1974
I'm a boomer like many of you here. It seems to me if your career was non corporate--education, government worker , utility company, jobs with trade union--you are likely getting a nice pension. Many of those jobs you didn't even need a degree. Those who were in the corporate world, many with advanced degrees, were given traditional 401K plan and no pension. None of my companies offered a Roth 401K either, not that I would have qualified. In retrospect, many who did not get degrees still came out of it quite successfully. We are probably the last generation where you could get by without a degree.

Maybe you are like me and had a corp job for a time in the 80s or 90s that paid a pension, and now that you are at or near retirement you will get a small pension amount for the 5-10 years you had this job. In my case I will get $465/month at age 65. I can't help but wonder now if I should have had stayed longer with this company. It paid excellent wages plus the pension was free...it may have been considered part of the benefit package but there was no decrease in salary to compensate.
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Old 09-12-2017, 10:15 AM
 
6,886 posts, read 7,295,373 times
Reputation: 9791
As another person said:
"as part of our benefit package negotiated by our union, the company paid a % directly to the pension fund. So you could say the employee didn't pay into it, but in reality that % was part of our total compensation. It was sort of like why pay you the money, have it taxed, and then take it back from you and put in the fund. That didn't seem fair to the union to have the employee's contribution taxed, and to never see the money until 30 years later. So, by the employer paying it into the fund for us, it was untaxed."
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