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I've been working at the same government job for 21 yrs. I plan to retire in 3 yrs and move out of California. I want to purchase a Nevada house to retire too. Can't afford my current rent and a second mortgage. Is here my question. If I get a job in Nevada, which will allow me to purchase a primary house, what happens to my current government pension? I assume I would roll it to a private pension plan (401k) or to another governement pension plan? If I decided to retire from the new job in 3 yrs, will I get the same amount if I retire from my current job? I'm curious what happens with my pension under this scenerio. I'm aware that I can pay for my current rent and second mortgage if I have a co-buyer. This would allow me to stay in California for 3 years and then move into the house in 3 years. I think I would make up the 3 year pension contribution with the new job. I may have to work the new job longer to be considered 'retired' from the new job in order to claim my 21 year pension. Appreciate any ideas on making the scenerio work.
I've been working at the same government job for 21 yrs. I plan to retire in 3 yrs and move out of California. I want to purchase a Nevada house to retire too. Can't afford my current rent and a second mortgage. Is here my question. If I get a job in Nevada, which will allow me to purchase a primary house, what happens to my current government pension? I assume I would roll it to a private pension plan (401k) or to another governement pension plan? If I decided to retire from the new job in 3 yrs, will I get the same amount if I retire from my current job? I'm curious what happens with my pension under this scenerio. I'm aware that I can pay for my current rent and second mortgage if I have a co-buyer. This would allow me to stay in California for 3 years and then move into the house in 3 years. I think I would make up the 3 year pension contribution with the new job. I may have to work the new job longer to be considered 'retired' from the new job in order to claim my 21 year pension. Appreciate any ideas on making the scenerio work.
You have a lot of variable swirling and I would suggest you consult a professional on the subject. There are a few posters with great knowledge of federal pensions and even couple that with having retired to Vegas who might give you insight. However you might want to be very cautious about general forum advice.
I've been working at the same government job for 21 yrs. I plan to retire in 3 yrs and move out of California. I want to purchase a Nevada house to retire too. Can't afford my current rent and a second mortgage. Is here my question. If I get a job in Nevada, which will allow me to purchase a primary house, what happens to my current government pension? I assume I would roll it to a private pension plan (401k) or to another governement pension plan? If I decided to retire from the new job in 3 yrs, will I get the same amount if I retire from my current job? I'm curious what happens with my pension under this scenerio. I'm aware that I can pay for my current rent and second mortgage if I have a co-buyer. This would allow me to stay in California for 3 years and then move into the house in 3 years. I think I would make up the 3 year pension contribution with the new job. I may have to work the new job longer to be considered 'retired' from the new job in order to claim my 21 year pension. Appreciate any ideas on making the scenerio work.
If you work for the government why would your pension change if you move from California to Nevada? Unless you work specifically for the State of California and it is a State of California pension?? Isn't a Government Pension under the U.S. Government and all states answer to the U.S. Government so I am confused.
I would wait the 3 years if you are unsure how this is going to work. Either wait the 3 years or go talk to a financial advisor to see how this is going to work. I semi retired when I was 55 then fully retired when I was 63 and have been drawing my Social Security a few years early since I turned 63. Could have waited until I was 65 but the difference wasn't that much and had gone thru some health issues..was concerned 65 might not get here but it is just around the corner..thank God.
Good Luck with this. So much to figure out when you retire, right?
Thanks. I know my question is a little complex. I'm concern with drawing my government pension after I technically leave my job for another. Then retiring after a few years with the new job. I guess I lose 3 years contribution with the current pension, but will make up some of it with the new job. Anyway, my current job is a 'County' government job. I also do not have the credit to draw social security.
When you leave a job the pension (if it is offered) ends. That is, whatever benefit you have accrued at that point is all you will ever get (maybe a COLA occasionally) if it is a defined benefit type. In that case you can't go elsewhere and add anything from your new job to your old pension.
If your pension is a 401k type you can always roll it over to an IRA and contribute to that from your new job. Or just keep it where it is if you like the earnings and start a new IRA or join the 401k in your new job.
By the way, don't depend on a new job as anything to be included in your retirement plans. It is very, very difficult these days to find another job. And if you are within 3-4 years of retirement age (ie 65 or so), almost impossible.
And one more thing. If you meet the age/service requirements as far as the pension is concerned from your old job you can retire and immediately start drawing payments from your pension. What ever you do in the future (new job) doesn't affect your status with your old employer.
It's my understand that your pension benefit is defined when you leave the job. You know exactly how much you will get and when you can start collecting. The amount you get doesn't change unless you have a COLA type provision.
I live in Las Vegas. The job market is terrible here and there isn't much available. If you have to work here, I would suggest finding a job before you move. I hear unemployment has dropped to 12% or so but I have my doubts. I think there are a lot of people here who are still unemployed but have run out of benefits.
You actually have to read the pension plan to know your rights. You should be given a summary plan each year. This should answer most of your questions. I would hope that the government has a qualified employee that you are suppose to address HR questions too. I would ask this person your questions, but after you have read the summary plan. I would also think of finding a financial planner that has worked with the government retirement plan and can review your specific plan. This is probably a fee only planner as you are not looking to buy any investments, only to get advice.
I truely appreciate all the input. My original thought was to retire in 3 yrs. I'll be 55 with
25 yrs service. I do plan on working part time after retirement. I was going going to purchase
a primary house after retirement.
What has come up is the possibilty of housing costs bouncing back in 3 yrs. This is what
led to my original post. It appears if I retire now and buy a primary residence, I will lose
3 yrs of pension benefits. Its around $550. I probably wont work long enough with the new
job to make up that lost. I was told if I have a certified letter from my employer that my
work can be done on a computer, I'll be ok. Example: You cant be a cop in Chicago and claim
your primary residence is in Vegas.
I guess Im back to my original plan or find a way to pay my rent & mortgage (secondary)
and not worry about the whole residence issue.
If you meet the age/service requirements as far as the pension is concerned from your old job you can retire and immediately start drawing payments from your pension. What ever you do in the future (new job) doesn't affect your status with your old employer.
That is probably the case most of the time, but there are some exceptions. In the case of public employee pensions, there are often rules to prevent "double-dipping". For example, suppose a California public school teacher retires at age 62 after 34 years of service and starts to draw his pension. Under those conditions, it would be a pretty substantial pension. Then suppose that teacher gets a full-time job with another school district (another employer); he would be just swimming in money and the pension system was not designed to support that. Therefore, in the case of California, a public school teacher has some pretty strict limitations on how much he can earn in other public school employment within the state of California while drawing a pension. Private school employment? No limits. Move to another state and work in public schools? No limits. Get a job in private industry? No limits. So there are still opportunities to just absolutely rake in the dough outside of the limitations.
What I have cited may be an unusual, specialized, and limited case, of course.
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