Got a pension? What is it in comparison to your last paycheck? (raise, school)
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Yes, I live in CA, too, so same thing. But according to some posters on here, I'm supposed to be too stupid to see that I would get much less pay (not to mention benefits) in an equivalent job in the private sector. Or I guess I'm supposed to think my job is the rare exception...but it isn't. In my observation, most public sector jobs pay about market rate (better on the low end, lower only on the high end), but the pension and other benefits are well above the private sector market rate.
You are exactly correct. I worked as a Ca public sector retirement plan administrator and am also aware of exactly what public sector job classes are paid vs CA private sector workers having done classification and compensation studies also.
Years ago before the strength of the unions in CA this wasn't so. But w the increasing of union influence, and having the democrats in their back pocket it's more the opposite now.
What will happen is that the people in California will be on the hook for the pension shortfall that will definitely occur down the line. It will be virtually impossible to lower existing retiree pensions and even those formulas in existence for current employees. This will result in taxpayers funding the shortfall and services will suffer. Meanwhile, people like me will move out of California while still taking advantage of their generous California pensions.
Will you please help me understand -- I am confused about the whole windfall elimination thing - my husband has only had jobs that paid into social security for his entire life -- more than forty years. He also has a state pension that will eventually pay him 69% of the highest three years of his base salary.
Is he in danger of having his social security reduced because he has a government pension? Or would it only be reduced if he had a "non-social security" job? When he retires, he will have over 30 years of state government service and he will have paid into the state system and into social security.
To the original question, my husband worked for 32 years for a private company. His pension is about 30% of his final salary and there are no COL adjustments. We feel fortunate to have the pension. It's no longer offered by the company.
Read everything you can about it. Social Security will not give appointments to people who are just asking questions about their retirement down the road. They only want to help people apply.
In NJ low level government jobs like custodians pay more that the private sector but professional and managerial positions pay much less.
I doubt it if you consider they won't get fired and will get a big, worry-free pension in addition to what the can invest in top of that.
How much would someone have to have as a nest egg in order to receive maybe 70,000-100,000 forever in a guaranteed annual pension for maybe 30 years of work, for example. Some also receive freeeee or subsidized medical. Am I looking in the mirror? Yes.
Actually, I only worked 27. Thank you California.,I still got so muc vacation I could never use it all and was able to invest in three different deferred comp plans in a self-directed brokerage account. Lol
Will you please help me understand -- I am confused about the whole windfall elimination thing - my husband has only had jobs that paid into social security for his entire life -- more than forty years. He also has a state pension that will eventually pay him 69% of the highest three years of his base salary.
Is he in danger of having his social security reduced because he has a government pension? Or would it only be reduced if he had a "non-social security" job? When he retires, he will have over 30 years of state government service and he will have paid into the state system and into social security.
Thank you.
It depends on whether the 40+ years of paid into SS included 30 years of paid in substantial earnings. If this is so, then there will be no reduction due to WEP. Here's a link that includes a table of what is considered substantial:
Not that I am not on your side but where does your public sector employer get the money from to pay your salary. Most of us get ours from tax revenues of one sort or the other. Just curious if yours is from grant money which some are etc. Which is a great point if so. Numerous public employees have positions funded by grants etc.
Even if he is contributing 100% of the retirement contributions ( which is HIGHLY unlikely) the money will come from taxpayers, rate payers, etc. Plus they are almost ALL very underfunded. These pension fund funding levels need to be dealt with!!
Will you please help me understand -- I am confused about the whole windfall elimination thing - my husband has only had jobs that paid into social security for his entire life -- more than forty years. He also has a state pension that will eventually pay him 69% of the highest three years of his base salary.
Is he in danger of having his social security reduced because he has a government pension? Or would it only be reduced if he had a "non-social security" job? When he retires, he will have over 30 years of state government service and he will have paid into the state system and into social security.
Thank you.
mlb has it right read into the link he posted. On first glance though I think you will be okay if as you say your husband has been paying into SS even though he worked for the state. Not every state worker has the windfall happen to them. It entirely depends on a couple of factors. Read the material in that link. It should answer your questions. If not you might need to give us what state your husband worked for. Not knowing that limits our response.
I just re-did the online WEP calculator - inputting ALL of my earnings on the SS statement. Last time I did this was 2 years ago. I also have a better indication of what my monthly statement from the state retirement will be taking into account my current salary.
The calculation was well above what the SS people have been indicating to me (50%) I should estimate. But not the number as indicated on my statement.
Perhaps because I've worked for well over 40 years...only the last 15 have been not contributing to SS.
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