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Old 08-22-2019, 01:40 PM
 
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I have the Social Security publication in a spreadsheet with all my earnings. I know to the penny what my Social Security check will be at various ages.

No pension other than that.
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Old 08-22-2019, 02:10 PM
 
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I'm surprised no one has given the answer below ;-)

What pension...…...
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Old 08-22-2019, 06:06 PM
 
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The pension I hope to retire under is based on a multiplier for each year of credit service x the best 5 of the last 10 years of employment. For employees with less than 20 years of service the multiplier is 2.5% for each year of service. for employees with 20 or more years of service, the multiplier is 2.6% for the first 20 years of service and 2.75% for each year of service thereafter.
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Old 08-22-2019, 06:50 PM
 
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Mine is a Tier 1 teacher's pension. It is basically 2% x years of service for the average of your highest 3 years of the last 10. We can retire at any age with 25 years. Accumulated sick leave is converted into service credit. We contributed 7.5% towards it so there is an underlying annuity value if you choose that option. I did instead of selecting survivor benefits for my husband. He is 76 with major heart problems. The annuity takes 10.5 years to deplete. It cost me $30 a month and goes to another beneficiary if he dies in that time frame.

It is a good pension but remember that most teachers aren't highly compensated. My pension is $2800 a month. I do get SS because we paid into it.

For several years now there has been a Tier 2 for new employees. Theirs is 1.5% x years of service for the average of the last 10 years. Accumulated sick leave is simply lost. They must wait until 62 (I think but 60 something) to begin drawing. I think they contribute 6% but it might be 6.5%. I only know the vague details.

Supposedly, the pension benefits are leading to a teacher shortage and high rates of absenteeism. So a Tier 3 has been proposed that Tier 2 can opt into. It is basically Tier1 benefits. It didn't pass the legislature.

I live in Alabama.
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Old 08-22-2019, 07:11 PM
 
12,356 posts, read 15,329,224 times
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I believe it's the average of your best 35 years, adjusted for inflation. First $800 of average monthly income paid at 90%, the next $4100 at 32%, then 15% of the amount above that. Reduced for early retirement, boosted for late, up to age 70.
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Old 08-22-2019, 09:07 PM
 
8,273 posts, read 12,021,827 times
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Quote:
Originally Posted by mgdriver74 View Post
Federal CSRS - only available to federal employees hired prior to 1984 (or so). Employed since then are part of FERS.

First off - excluded from Social Security unless had enough quarters either before or after federal service. And then SS reduced due to the Windfall Elimination Provision (WIP).

First compute time in service - Years, Months and Days
Add in accumulated sick leave - Years, Months and Days

Round to the next lowest Year/Month

For years 1-5 you get 1.5% per year of your high 3 salary
For years 6-10 you get 1.75% per year of your high 3 salary
For years 11 - whatever you get 2% of your high 3 salary

Assuming you end up with more than 10 years, it is basically 2% per year less 2.75%
That's not quite correct. It would actually be 2% per year less 3.75%.

So someone who retires with exactly 20 years of service would have a CSRS annuity of 36.25% of their high-3. The computation for someone with 25 years of service would be 46.25%. Thirty years of service would equate to 56.25%.


Quote:
Originally Posted by TheEmissary View Post
I too, am a bit foggy on the details of the FERS system. I know you get a supplement to live on after your retirement at MRA (minimum retirement age) or greater, but does one have to start taking Social Security at 62 and do you keep the supplement and collect SS, or does the supplement decrease or disappear and your SS now your "pension"? 'Tis a mystery to me!
You don't "have" to take Social Security at 62, but the supplement disappears when you turn 62 whether you apply for Social Security then or not. The purpose of the supplement is to bridge the gap in time from your date of retirement until you first become eligible for Social Security. Whether you actually apply for Social Security when you're first eligible is up to you.
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Old 08-22-2019, 10:53 PM
 
Location: Albuquerque, NM
1,442 posts, read 2,596,855 times
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My pension will be blended because I’ve worked under both the regular state plan and the state educator’s plan (New Mexico). The former has a factor of 2.5% x years of service x average of high 3, with a rule of 85 for retirement eligibility (or age 65 + 8 years). The latter has a factor of 2.35% x years of service x average of high three, with a rule of 80, or age 67 + 5 years. The years of service and high three years all work together under the two plans to reach the rule of whatever and a single average high 3. I contribute 10.7% of my gross toward my pension and also pay into Social Security.

I should note that the factors are indeed generous compared to other pension plans. However, salaries are quite low in this poor state, so it all evens out in the end.

I came to public entity work relatively late at age 48. Before that I never thought I’d have a pension, so had saved in other vehicles throughout my private sector career. I still contribute to a 403b and a Roth. If I retire at 64.5 with 16 years, the pension once it all kicks in will be 37-38% of my high 3 average. I currently live on about 40%, so when also factoring in SS and other savings, it should all work out.
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Old Yesterday, 04:37 AM
 
Location: SW Corner of CT
1,955 posts, read 1,571,366 times
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2% x years served of highest 3 years of BASE salary. Maxes out at 30 years, at 65 I'll have 23 years in, so I'm looking at 46% of my salary plus SS.
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Old Yesterday, 08:58 AM
 
36 posts, read 22,377 times
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Ours has changed over the 26 years I've been here.

Original plan was final average pay (5 highest of last 10 years) x 2% x years of service, less 50% of the estimated age-65 social security benefit. The 2% dropped to 1.7% for years after 1995.

Effective 2002, they went to an account based benefit. Each month, you get a “credit” of your eligible pay x pay credit percentage (based on age and service years – ranges from 3-8%), plus interest for the prior balance.

For people hired before 2002, actual benefit is calculated for both scenarios, and you will get the “greater of”. Original plan still calculates highest for me.

As of 2016, pension was frozen (you keep benefits, and final average pay could still grow) and it was closed to new hires.
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Old Yesterday, 10:06 AM
 
Location: RVA
2,187 posts, read 1,291,933 times
Reputation: 4540
I only posted my pension annuity, whose formula, while not bad, is not as good as many here, though salary was higher than public equivalent, & about 25% of it is COLA, and it was non contributory. I did not mention 3/6 matching on the 401k, the yearly Medicare stipend or the lump sum special retirement accounts, which we get as either an adder to our 401k 2 months after retirement, or as an increase to the annuity. (Weird rule, based on making sure all accounts are closed, bonuses up to date, etc), but basically it was 2% of base salary invested in the 20 year T bill. The stipend is based on when you started & when you retired, and your pension amount, with the formula actually not posted but described. Bottom line for us, it is an extra $2000/yr that can only be applied to Medicare and Supplemental policies. So I mentally add about $500/mo to my pension when figuring for taxes as the extras are included as income, but don’t show up on the pension stub.
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