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With 20-years of AD, your pension today is 50% of your base-pay, figured from the highest three years of base pay that you received.
I am not following how that is selling the DOD short.
If your AD base-pay formed a majority of your Gross Income; then the relationship between your AD pay and your retirement pay would be a closer relationship.
If your AD Gross Income was mostly the other pays and allowances; then the relationship between your AD pay and your retirement pay would be less.
yeah..it's something like that..the best 3 years out of the last 5...something as such....
With 20-years of AD, your pension today is 50% of your base-pay, figured from the highest three years of base pay that you received.
I am not following how that is selling the DOD short.
If your AD base-pay formed a majority of your Gross Income; then the relationship between your AD pay and your retirement pay would be a closer relationship.
If your AD Gross Income was mostly the other pays and allowances; then the relationship between your AD pay and your retirement pay would be less.
You're statement from an earlier post that you recieve a pension that is 1/6 of your AD pay is misleading. Retirement pay (under the High-3 system) is based on base pay from the highest 3 years (for most folks that is the last three years of AD). Housing and any special pay (flight pay, jump pay, dive pay, bonuses,etc) is not calculated into retirement pay.
Of course your retirement pay is not going to be 50 percent (at 20 years)of your AD pay (it was never advertised as such), only 50 percent of your base pay. It is still a pretty good deal.
Plus for most people thier AD base pay will probably be a majority of thier Gross pay by the time they reach 20 years.
You're statement from an earlier post that you recieve a pension that is 1/6 of your AD pay is misleading.
It is factual.
Facts can mislead, I do understand. But facts are still facts.
Quote:
... Retirement pay (under the High-3 system) is based on base pay from the highest 3 years (for most folks that is the last three years of AD). Housing and any special pay (flight pay, jump pay, dive pay, bonuses,etc) is not calculated into retirement pay.
Yes, I stated that.
Quote:
... Of course your retirement pay is not going to be 50 percent (at 20 years) of your AD pay (it was never advertised as such), only 50 percent of your base pay. It is still a pretty good deal.
Plus for most people thier AD base pay will probably be a majority of thier Gross pay by the time they reach 20 years.
Each community is different. Within my community what I experienced is the norm.
Because we have such small communities like this, we have entirely separate bases, so folks from different communities rarely mingle.
So your saying that within your community after 20 years of service base pay would generally be the majority of their income?
Okay I could see that possibility, in some communities.
During my twilight tour in Naples I worked alongside folks from the Air force and Army. I was amazed at the differences in our pays. A group of E6s each with 18+ years, stationed on the same base, our families living in the same government provided gated-community apartment complex.
Interesting reading all of this. I was lucky to work for a foreign company, participated in their private pension, which they totally controlled, none of our money went in the plan. I took an early out at 55 and receive 59% of my former pay. Employees hired after 2002 are on their own having to depend on their savings, and a 401K plan, where the company does match funds.
I moved from Illinois to Wisconsin and my private pension (which gets reduced this year as I'm taking social security) is taxed but Wisconsin passed a law recently they will no longer tax social security. I think future generations are going to have a tough time when it comes to retiring. Days of working
for one place 40 yrs. to secure your future are becoming a thing of the past.
I am 50 years old and I am planning to join with Fed. Gov. If I work 10 years, howmuch will be my pention?
Koruth
Without going into detail, you will receive a defined benefit pension of approximately 10% of the average of your last three years salary, plus whatever money you have in your Thrift Savings Plan, which is similar to a 401(k) account. The Government will match whatever you put into your TSP account on a dollar-for-dollar basis up to 3% of your salary, and 50 cents on the dollar over and above that amount up to 5% of your salary. The Government will also put in 1% even if you don't contribute a dime. In essence, if you put in 5%, they'll put in 5%. You will also be covered by Social Security while working.
Here is a link to further information on your retirement benefits:
In this state fire, police and and prison guards can retire as young as age 50 and collect nearly 100 % of their salaries.
California pensions facts:
Twelve percent of all California public safety members are subject to the 3 percent at age 55 formula. They would need 37.5 years of service at age 50 to get 90 percent, and would have had to start working at age 12.5 to earn 37.5 years.
Seven percent of all California public agency safety members are subject to the 2 percent at age 50 formula. They would need to have 45 years of service at age 50 to get 90 percent, and would have had to start working at age 5 to earn 45 years.
California public agency safety members who retired at age 50 with 30 years of service represented 1 percent of all those retired. The reason very few ever would receive this level pension is that they would have had to start working age 20 to earn 30 years. Most start their safety careers at age 27, 28, or 29.
The average CalPERS member receives 50 percent or less of their pay in retirement.
The average CalPERS pension is about $25,000 per year.
Half of CalPERS retirees receive $16,000 per year or less in benefits. Personally, mine will be less than this.
Many CalPERS members do not receive Social Security, making their CalPERS pension their sole source of pension income, other than savings.
Only 1 percent of the nearly half million CalPERS retirees receive annual pensions of $100,000 or more. Many are retired non-unionized or specialized skilled employees or other high wage earners who worked 30 years or more.
All California government workers contribute to their CalPERS pensions. For state employees, the range is five to eight percent of their monthly earnings; for public agencies it is five to nine percent. While the vast majority pay five percent, firefighters, peace officers, and the CHP pay eight percent. Just like a 401K - except CalPERS is mandatory. You have no choice but to contribute, and you have no say whatsoever where it will be invested.
Last edited by Gandalara; 04-30-2010 at 11:33 PM..
Well, we could look at Social Security as an interesting comparison. I have been paying the maximum in for over 30 years. When I retire at the age of 66 my SS retirement will be 11% of my income.
PS Did I mention that as a sole proprietorship for the last 25 years I have paid in BOTH the employer and employee share, approximately 15% of my income?
Are you starting to feel better about your pension yet?
Are you starting to feel better about your pension yet?
LOL - that's like the question When did you stop beating your spouse.
For me, it came down to higher salary and riskier retirement or lower salary and safer retirement. I'm an accountant - I could have made a lot larger monthly salary on "the outside".
The point of my post was to try and stop the fiction of the previous poster's claim of "can retire as young as age 50 and collect nearly 100 % of their salaries."
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LOL - that's like the question When did you stop beating your spouse.
