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I admit to being envious of those of you lucky enough to have a full pension to fund your retirement. From reading posts on C-D, seems like many of you are on Easy Street; and your SS is bonus money that you can do with what you please! And then you have your savings on top of that. I do realize you guys worked hard for your money, so enjoy!
I worked for a company for only 6 years, and left it in 1999. I left a vested pension that I did not understand. I since learned when I am 65, I will get a Single Life Annuity Pension of $465 a month for my years worked. I did not have to pay into this pension fund.
I am wondering if your pay was docked for your pension; or if it was free? Do you get other benefits and healthcare too?
Local government. 4% of gross salary was my contribution.
I retired at age 50 with 30 years of service at 70% of average of 3 highest years' salary. COLA is fixed at 1.5% a year.
Healthcare .... I pay the same 20% of premium as do current employees.
Overall it is a generous plan. Workers who started after I did, have a max. defined benefit of 50% of salary, however, they introduced a matching 401K plan when they rewrote the retirement system for newer workers.
We were not "docked" per se. Our contribution was 7% of our salary but, as part of our benefit package negotiated by our union, the company paid that 7% directly to the pension fund. So you could say the employee didn't pay into it, but in reality that 7% 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.
...I will get a Single Life Annuity Pension of $465 a month for my years worked. I did not have to pay into this pension fund.
$465 a month for only being employed six years is pretty good. That's generous.
Quote:
Originally Posted by BabyJuly
I am wondering if your pay was docked for your pension; or if it was free? Do you get other benefits and healthcare too?
I'm having a difficult time getting a handle on your phrase, "free". I did have an employer contribution to my 403(b) based on longevity and current compensation rate. Full vesting was after five years of continuous full-time, benefit-based employment, but I think it is a much shorter period now. There was no matching, but we could contribute pre-tax dollars from our paycheck. A few other retiree benefits, the biggest one being a medical insurance subsidy, again the amount based on longevity with the firm; and subject to change in future years as medical costs continue to skyrocket.
I used to contribute 6% to the pension fund, but as of last month, the contribution rate has risen to 7.38%. I'm not happy about it, but everyone at my workplace is in the same boat, except for employees who were hired before 1978. Actually, the new rate applies for everyone statewide in my public sector profession.
I won't be eligible to retire with a pension until I'm 65 years old.
Mine was non-contributory, but I could have contributed if I wanted to, and looking back, wish I would have. My retirement after 35 years along with Social Security I am barely scraping by and lucky to have $5 at the end of the month.
We were not "docked" per se. Our contribution was 7% of our salary but, as part of our benefit package negotiated by our union, the company paid that 7% directly to the pension fund. So you could say the employee didn't pay into it, but in reality that 7% 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.
Seems a bit of a misnomer. Benefits, including pensions are never "free". Even though I didn't explicitly pay into my pension I know my salary would have been higher without it, else it would not have been a competitive job.
That said, I'm very glad to have it, as well as a 401k plan I could pay into - only a 1% match but with the pension, that's expected. I'm very grateful for both.
Non-contributory - but wages are LOW. Employer (government) opted out of Social Security in 1984. The money that was to go there goes to the State Retirement Fund in our "honor".
A deduction from every single paycheck over the 31 years. The deduction more than tripled over that time. The last increase, from 5% to 7%, went to balance the State's General Fund and not the pension system.
For part of the time my employer, a school system, deducted it after taxes instead of pre-tax like it was supposed to be done.
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