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Old 09-23-2017, 07:07 AM
 
844 posts, read 747,958 times
Reputation: 1383

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I'm not sure if I need to vent or looking for info, but I'll take any ideas everyone has.


I retired from my job with New York State around 2005 to open a business, but had to close the business in 2010. At that time my husband had multiple surgeries which required my help, so I did not return to work.


In 2008, (at 55) I took my pension. (all of $540/ m)


A few years after that I became very sick, so even tho my husband was better, I still couldn't work. So in 2014, at age 62, I started collecting SS. ($1200/m)


Thru some good doctors, etc, I'm now doing very well and want to return to work for New York State at age 64. (I'll be 65 in January)


So I called my retirement plan to see what I need to do. I was told that I will need to PAY BACK my pension. That will equal about $50,000. I know that I will need to do the same for SS, which will equal about another $27K.


Let's face it, I'm going back to work because I NEED to, not because I have nothing else to do.


Now if I do go back to where I use to work, I will make about $56K per year. The pension pay back will come out of my pay check. So basically I'll be working the first year for free (altho they won't take the whole amount at once). The second year, I'll be making what I once had, the third and following years, will then be my salary for me.


My skills are specialized and really don't translate to other jobs outside what I use to do.


So, it seems I either slowly sink on a tiny pension and SS, or I work and pay back $77K, out of a $56K salary.


So then I wonder, what happens if I'm laid off, or I get into a car accident (or sick, have an accident, etc) and can't work any more?


I paid into my pension, with the state matching it. I can even see paying back THEIR part, but isn't that MY money?


It just shows that seniors just can't get a break. You can't live on what they pay you, but you can't work either.


Because I took SS at 62, I can only make $14K. That just won't cut it.


Any and all answers are welcome. Thanks.
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Old 09-23-2017, 07:19 AM
 
Location: Central Massachusetts
4,800 posts, read 4,850,322 times
Reputation: 6379
Quote:
Originally Posted by countrykaren View Post
I'm not sure if I need to vent or looking for info, but I'll take any ideas everyone has.


I retired from my job with New York State around 2005 to open a business, but had to close the business in 2010. At that time my husband had multiple surgeries which required my help, so I did not return to work.


In 2008, (at 55) I took my pension. (all of $540/ m)


A few years after that I became very sick, so even tho my husband was better, I still couldn't work. So in 2014, at age 62, I started collecting SS. ($1200/m)


Thru some good doctors, etc, I'm now doing very well and want to return to work for New York State at age 64. (I'll be 65 in January)


So I called my retirement plan to see what I need to do. I was told that I will need to PAY BACK my pension. That will equal about $50,000. I know that I will need to do the same for SS, which will equal about another $27K.


Let's face it, I'm going back to work because I NEED to, not because I have nothing else to do.


Now if I do go back to where I use to work, I will make about $56K per year. The pension pay back will come out of my pay check. So basically I'll be working the first year for free (altho they won't take the whole amount at once). The second year, I'll be making what I once had, the third and following years, will then be my salary for me.


My skills are specialized and really don't translate to other jobs outside what I use to do.


So, it seems I either slowly sink on a tiny pension and SS, or I work and pay back $77K, out of a $56K salary.


So then I wonder, what happens if I'm laid off, or I get into a car accident (or sick, have an accident, etc) and can't work any more?


I paid into my pension, with the state matching it. I can even see paying back THEIR part, but isn't that MY money?


It just shows that seniors just can't get a break. You can't live on what they pay you, but you can't work either.


Because I took SS at 62, I can only make $14K. That just won't cut it.


Any and all answers are welcome. Thanks.
A couple of things here I see. First going back and having them take $X.XX from your paycheck is not a bad deal. It will depend on how long you plan to work there. Second you will not be restricted once you reach 65 on your income. Oh and you will not need to pay back SS. Just continue collecting.

The first piece you will need to know is how much will they take from your paycheck. Then do some math as to how long you plan to work. You are basically buying back your previous retired years to add them to your future retired years at a presumably higher pay rate then. Do not discount that your retirement pay in the future will be increased based upon your last few years of working. Good luck. I am sure that there are a couple of other opinions here and some NYS workers and former workers here to give guidance here as well.

Last edited by oldsoldier1976; 09-23-2017 at 07:20 AM.. Reason: added SS information
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Old 09-23-2017, 07:43 AM
 
844 posts, read 747,958 times
Reputation: 1383
I would like to work until I'm 75. Maybe even a little beyond that. So that means I will be working for at least 10 years providing there are no health issues, lay offs, or something else that happens.
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Old 09-23-2017, 07:46 AM
 
Location: Central NY
4,672 posts, read 3,248,729 times
Reputation: 11956
I can only offer up what I had to do, tho I did not work for the State.

To me what you have to pay back to your pension is astronomical (but then I never made the kind of money you did). I tend to wonder what if this happens or that happens? Life is full of surprises, not all of them good.

Right now you know what you have. Many people have had to make the adjustment of living on a lot less in retirement for one reason or another.

It would feel (to me) like a huge gamble. I personally would hate to see you lose more by going back to work and then having something bad happen. You have already experienced it and I'm sure it came as a surprise to you when it did.

Whatever you decide, I wish you the best.

I know others will have a much broader view for you on this...... I lost a lot and don't have a positive view on it. Listen to what others are telling you.
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Old 09-23-2017, 08:26 AM
 
2,215 posts, read 743,884 times
Reputation: 1376
Quote:
Originally Posted by countrykaren View Post

So I called my retirement plan to see what I need to do. I was told that I will need to PAY BACK my pension. That will equal about $50,000. I know that I will need to do the same for SS, which will equal about another $27K..

You don't pay back SS if you go back to work.
For under 65 the income limit is $16,920. After that SS deducts $1 for every $2 you earn.
Over 65 there is no limit.

Many government jobs have a waiting period if you retire and then get reemployed.
Get rehired before the waiting period is over you may have to 1) repay, 2) get pension suspended or 3) collect both pension and new salary.

A few others have an age limit..under 65 and over 65.

I think you need to do some more investigation and getting written verification of what you need to do to go back to work.
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Old 09-23-2017, 08:46 AM
 
11,135 posts, read 8,548,081 times
Reputation: 28129
Do you have to pay back the money if you work for a private company? What skills do you have that are so specialized that they can't translate to the private sector?
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Old 09-23-2017, 08:49 AM
 
674 posts, read 839,994 times
Reputation: 1191
It must be very frustrating to want/need to go back to work and now have to give back some of your pension. It does seem that you'll be getting more eventually, but that doesn't help now. I would be calling my accountant and letting him/her help to figure this out. They should be knowledgeable in this. I'd be very interested if it were me on just how much they'll be taking out each paycheck. What's the payback plan?

Best of luck.
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Old 09-23-2017, 09:05 AM
 
29,782 posts, read 34,876,173 times
Reputation: 11705
Quote:
Originally Posted by countrykaren View Post
I'm not sure if I need to vent or looking for info, but I'll take any ideas everyone has.


I retired from my job with New York State around 2005 to open a business, but had to close the business in 2010. At that time my husband had multiple surgeries which required my help, so I did not return to work.


In 2008, (at 55) I took my pension. (all of $540/ m)


A few years after that I became very sick, so even tho my husband was better, I still couldn't work. So in 2014, at age 62, I started collecting SS. ($1200/m)


Thru some good doctors, etc, I'm now doing very well and want to return to work for New York State at age 64. (I'll be 65 in January)


So I called my retirement plan to see what I need to do. I was told that I will need to PAY BACK my pension. That will equal about $50,000. I know that I will need to do the same for SS, which will equal about another $27K.


Let's face it, I'm going back to work because I NEED to, not because I have nothing else to do.


Now if I do go back to where I use to work, I will make about $56K per year. The pension pay back will come out of my pay check. So basically I'll be working the first year for free (altho they won't take the whole amount at once). The second year, I'll be making what I once had, the third and following years, will then be my salary for me.


My skills are specialized and really don't translate to other jobs outside what I use to do.


So, it seems I either slowly sink on a tiny pension and SS, or I work and pay back $77K, out of a $56K salary.


So then I wonder, what happens if I'm laid off, or I get into a car accident (or sick, have an accident, etc) and can't work any more?


I paid into my pension, with the state matching it. I can even see paying back THEIR part, but isn't that MY money?


It just shows that seniors just can't get a break. You can't live on what they pay you, but you can't work either.


Because I took SS at 62, I can only make $14K. That just won't cut it.


Any and all answers are welcome. Thanks.


There are three basic strands providing the funds for your retirement pension.
A. Employee Contributions
B. Employer Contributions
C. Return on Investments from A and B contributions

Are you being asked to payback all three or just B and C with C being calculated based on a formula?

Pension payout rules are very different from state to state. What would have happened if you had died at age 55 or at age 52 or had to leave at age 52? I assume you qualified for retirement at age 55 minimum which is common.
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Old 09-23-2017, 09:26 AM
 
Location: Central Mexico and Central Florida
7,108 posts, read 3,465,006 times
Reputation: 10183
What will your pension be after 10 more years of work, with the payback?
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Old 09-23-2017, 09:36 AM
 
488 posts, read 325,281 times
Reputation: 1139
Quote:
Originally Posted by skycaller23 View Post
You don't pay back SS if you go back to work.
For under 65 the income limit is $16,920. After that SS deducts $1 for every $2 you earn.
Actually, wouldn't that be under 66?
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