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Old 09-23-2017, 09:52 AM
 
Location: Saint Johns, FL
1,192 posts, read 940,820 times
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Yes, the first most obvious thing that needs repeating is you do NOT repay SS. You will have to stop it though. You will make too much. Sounds like you would make enough to wait till age 70. So it's $50K not $77K,

So even if you have to pay back the $50K, (and even in one year, which is unlikely), it's a worthwhile investment in your future.

You've been living in $21K a year, so if you got paid $56K, you could be paying off $35K in one year and be breaking even.

Go for it.
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Old 09-23-2017, 10:15 AM
 
Location: Chicago area
14,364 posts, read 7,911,249 times
Reputation: 53461
I think we're missing one other piece of the puzzle, like do you have other assets? Do you own a house with equity? Can you move to a place with a lower cost of living vs going back to work. Can you work part time in a lower cost area and make ends meet? There are other options besides going back to work full time.
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Old 09-23-2017, 10:18 AM
 
Location: Central Massachusetts
4,800 posts, read 4,842,106 times
Reputation: 6377
Quote:
Originally Posted by Newporttom View Post
Yes, the first most obvious thing that needs repeating is you do NOT repay SS. You will have to stop it though. You will make too much. Sounds like you would make enough to wait till age 70. So it's $50K not $77K,

So even if you have to pay back the $50K, (and even in one year, which is unlikely), it's a worthwhile investment in your future.

You've been living in $21K a year, so if you got paid $56K, you could be paying off $35K in one year and be breaking even.

Go for it.
no she would not have to stop taking it. In fact it is just as well she continue taking it as it would supplement the loss in payments to pay back.

I also do not think she would have to pay it off in one year. If they took out one month of what she got in pension each month that would be 8 years. If they get paid bi-weekly and paid one month per pay period that would shorten it to 4 years. Those are rough estimates but close enough to understand the financial aspects.
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Old 09-23-2017, 10:35 AM
 
4,477 posts, read 4,737,152 times
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Quote:
Originally Posted by bigdogmom13 View Post
Actually, wouldn't that be under 66?


Yes, it is my understanding that until you reached your FRA you will have to make only the limit, 16,920.
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Old 09-23-2017, 10:47 AM
 
Location: SF Bay Area
1,423 posts, read 2,429,026 times
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If you are paying it (pension pay back) in monthly installments, the balance still outstanding will most likely continue accruing interest.

When I worked, I was on a reduced pension plan and later switched to full pension plan. I owed 26K. I began making back payments....only to have the amount I owe just about remain the same due to interest accumulating during the payoff. I ended up paying it all back in one lump sum. Ouch.
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Old 09-23-2017, 11:51 AM
 
346 posts, read 255,784 times
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Unfortunately your choice of leaving your state job to start a business didn't work out. I am sorry about your health problems too. I hope that after getting all of this advice things work out for you. I wish you the best.
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Old 09-23-2017, 01:54 PM
 
Location: Wasilla, AK
7,227 posts, read 4,119,698 times
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I retired from the State of Alaska. If I ever wanted to go back to work with the state (which I definitely don't!) all that would happen is that my State of Alaska retirement checks would stop and I would once again be contributing to PERS. There would be no requirement to pay back any money. Once I retired a second time I would simply receive a larger retirement check each month. I'm surprised New York doesn't treat this type of situation similarly.
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Old 09-23-2017, 02:25 PM
 
672 posts, read 837,147 times
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Quote:
Originally Posted by AlaskaErik View Post
I retired from the State of Alaska. If I ever wanted to go back to work with the state (which I definitely don't!) all that would happen is that my State of Alaska retirement checks would stop and I would once again be contributing to PERS. There would be no requirement to pay back any money. Once I retired a second time I would simply receive a larger retirement check each month. I'm surprised New York doesn't treat this type of situation similarly.
Me too. I am clearly not versed in pensions, but this makes more sense.
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Old 09-23-2017, 02:34 PM
 
Location: Central Mexico and Central Florida
7,095 posts, read 3,455,118 times
Reputation: 10153
Quote:
Originally Posted by AlaskaErik View Post
I retired from the State of Alaska. If I ever wanted to go back to work with the state (which I definitely don't!) all that would happen is that my State of Alaska retirement checks would stop and I would once again be contributing to PERS. There would be no requirement to pay back any money. Once I retired a second time I would simply receive a larger retirement check each month. I'm surprised New York doesn't treat this type of situation similarly.
That's why I asked her what her pension would be after the payback. SOME public plans let you 'make up' (ie, payback) all the contributions you would have made had you been working and not left employment. It's normally an option and a quite generous one, as you get credit for all those years you didn't work when it's time to calculate your pension when you retire.

All is supposition until the OP clarifies.
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Old 09-23-2017, 03:14 PM
 
Location: Central NY
4,653 posts, read 3,235,973 times
Reputation: 11907
I can't give you information regarding how New York state handles pensions, etc.

But I can tell you we seem to have a heck of a lot of restrictions on things you might not even think about. A lot of people have left and are leaving this state. Besides the high taxes.

So that, in my humble opinion, could be the reason for her situation.
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