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I went into a career with a pension in 1976, straight out of highschool. I decided that I did not like it, so got out of it in 1983. After four years of college I was brought to realize the importance of a pension. So I went back to the same company, where they continued my career. I qualified for my pension in 2001. Which was also when I was forced out of that pension due to my advanced age [company policy is that you can only stay in one pay-grade level for so long before they boot you].
For this 1970's teen, working for a pension was worth it.
This is one of the secrets of pension reform in the pubic sector. If you make the vesting period a minimum of 10 years you will have a number of younger job changers who will never qualify. They will get back the money they put in but not the ROI from that money.
I had a pension back then, but was only partially vested because I went back to school. Sometime in the 90's, they cashed me out because the pension would have been just under $100/mo., which was their cut-off point.
I agree that most didn't know the value of a pension then. I stumbled into a state pension job and even then I just thought it was nice. Now I know how lucky I was to have done so as it will be a large part of my retirement income and provide retirement health benefits.
And so those who did are now resented by those who didn't. This thread is so good to help understand the resentment to public employees. Not that the posters here are resentful by the underlying ideas they are sharing.
My brother in law worked for a company for over 29 years, still there technically till September when he is being laid off, but the thing is he was in the pension plan as well as having 401K and when he turned 70, the company started paying him his pension,'even though' he was still working for them.
He said he wanted to wait till he retired and they said the plan starts paying at 70 period.
So this year he is being laid off and getting severance, plus what he has earned this year plus pension, plus my sisters salary and now they are into alternative minimum tax.
I just had never heard of a company paying a pension to someone who was still on the full time payroll.
My brother in law worked for a company for over 29 years, still there technically till September when he is being laid off, but the thing is he was in the pension plan as well as having 401K and when he turned 70, the company started paying him his pension,'even though' he was still working for them.
He said he wanted to wait till he retired and they said the plan starts paying at 70 period.
So this year he is being laid off and getting severance, plus what he has earned this year plus pension, plus my sisters salary and now they are into alternative minimum tax.
I just had never heard of a company paying a pension to someone who was still on the full time payroll.
Had he retired prior to 70 would he had been able to collect?
I'm one of the lucky ones who has two pensions. The first job at which I worked for 17 years was pure luck -- I was married at the time and young enough not to understand the value of a pension. However, as a single mom, when I accepted the second job, the pension was a big deal. I retired from that job after 10 years. I know that neither of my children will have pensions. One is a saver and has been socking away the max into his 401K since he started work. The other -- in her late 30s -- will probably always struggle. It seems that we're the last generation to have widespread non-government pension options available and given the state of the market, that's a worry.
And so those who did are now resented by those who didn't. This thread is so good to help understand the resentment to public employees. Not that the posters here are resentful by the underlying ideas they are sharing.
I think most of the outrage is at pensions where the employees contribute little or nothing to their pension (0-2%), and have inflated their pay to get the biggest benefit. Unfortunately, those of us who pay a good portion of our salary into the system (>5%), are lumped together. As other posters have said, the younger generations won't have the same opportunities of a pension. Even our state moved to a defined contribution plan and reduced retirement heath benefits for new employees.
I was fortunate, worked at two companies that offered pensions and 401k plans, both matched 401k dollars up to xxxx. The last pre-retirement company I worked for offered an early retirement package which I took, left with paid medical/dental until age 65 and a substantial cash payout in lieu of a monthly pension distribution.
Today, very few companies offer any pension plans and the match for 401K's is low. Recently,I was bored, so I went back to work stayed for 5 years, retired yet again in March, it was just a job, however, I contributed 20% of my salary to a 401k and the company added 5%, I also put the max that I could into an IRA.
The only reason I was so agressive with my investments was because of my father, he drummed it in my head, pay yourself first, have $$ taken directly out of your paycheck and so on...over and over again...I didn't know any better...today, I say "Thank You Dad!"
I believe that many boomers were different than their parents, they did not stay at one company for 40 years and build a retirement, they did more job hopping, chasing the pay, not thinking about the future and their retirement. Actually, my dad considered me a job hopper, although I stayed at each company for more than 20 years. He spent 46 years at one company, and the company paid him a retirement of $3,500 a month for 26 years.... he also had free medical insurance (after age 65, it was supplementary). And, he received a cash payout at retirement, he enjoyed a stable retirement.
Today, few companies offer any type of a pension, the next generations of people who want to retire are going to have it rough, unless they have stuck to a good personal investment program, in preparation for retirement.
Silly us. We both worked in the public sector and both retired with defined benefit pensions, to which we contributed liberally, as well as Social Security. We also have paid for, full medical benefits and excellent dental benefits.
It's a rough life but someone has to live it. Did I mention that both the retirement benefits and medical coverage were major draws as we were raising our families? In the end, it all comes down to personal choice.
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