Pension question

[retdetsgt]

What the OP seems to be failing to understand, or maybe he/she does not know, is that many of these retirement systems require a contribution each paycheck from the employee. Ours was nearly 8% of our gross, including OT and Holiday pay.

We are fortunate in that we negotiated a contract many moons ago that gave up a couple of years of pay increases and in return, the city would pay our part of the pension contribution. That worked well for us because we got a benefit and didn't have to pay taxes on it and the city also got a break. Worked well for everyone.

[BP348]

I'm amazed at some of there agencies retirement plans. I though Uncle Sam offered a pretty good plan but it's not like any of these.

We get 1.7% for each year up to 20 years (34%) After that it is 1% per year. I've heard that you can max out on the % but I don't know if thats true. That's why it's important for us to put money into our TSP.

[retdetsgt]

We get 1.7% for each year up to 20 years (34%) After that it is 1% per year. I've heard that you can max out on the % but I don't know if thats true. That's why it's important for us to put money into our TSP.

+1

When I worked assignments with lotsa overtime, I put at least half of it away, more usually. I also had a 451 (gov't 401), but I also invested as I went along. I live more comfortably financially than I did when I was working. Of course my kids are all grown and out of school. Now I put extra money into college savings plans for my grandkids.

My pension is a bit over $60K, which in this part of the country is pretty good. My other income from investments, etc. more than allows me to pay cash for a new car or pickup every few years.

I'm really glad I tighten my belt a little years ago so that I didn't have to pickup a new lunch bucket somewhere when I retired.

[Cat_Doc]

We are fortunate in that we negotiated a contract many moons ago that gave up a couple of years of pay increases and in return, the city would pay our part of the pension contribution. That worked well for us because we got a benefit and didn't have to pay taxes on it and the city also got a break. Worked well for everyone.

We do get a bit of a tax break, at least from the state, on a recognized state pension fund. The feds nail us just like they do everyone else.

Our system works fairly well. I have been getting regular COLA increases since retiring from the city in 1998 and now make over $10,000 more a year than when I first retired.

I am in a second and separate retirement system with the county, again with employee and matching employer contributions. I am hoping I can last out another 10 years and receive a second full pension on top of my 457K and SS benefits. I would not starve if I walked off now, but if I can make it I will actually have more buying power in retirement than I ever did working. (Fingers crossed)

It irritates me, though, that others complain when they hear about the great pension plans public service personnel have in Arizona. It is not our fault they don't plan their future by contributing to a sound retirement fund, predominately worrying about net pay in the present instead of thinking of the future.

It may not have been the OP's intent, but some of his comments about "...pension is unmerited" really pisses me off. But then again, maybe he did not know we contributed to our account throughout the years.

I forgot to mention that if you do not have other medical insurance after retiring from the Arizona Public Safety Retirement System, you are eligible for a supplemental insurance payment, above and beyond your normal retirement benefit. Arizona takes fairly good care of its police and fire. They also have a separate retirement system for corrections officers which are almost identical to public safety. Dispatchers can retire under the corrections system with 25 years on, every one else is 20.

I am now under the State Employee plan, which goes off a point system based on a combination of age and years of service added together to obtain benefits based on the average pay of your three highest paid consecutive years. Normal retirement would be 50% of your pay, Holiday and OT included since you contribute off your gross. No double dipping, either; two seperate retirement systems. That also irks some. ;)

[retdetsgt]

It irritates me, though, that others complain when they hear about the great pension plans public service personnel have in Arizona. It is not our fault they don't plan their future by contributing to a sound retirement fund, predominately worrying about net pay in the present instead of thinking of the future.

We have the same thing here.... There's a horse's *** named Tom Sizemore that works for a couple of old rich right wingers. Every year he gets initiatives put on the ballot to screw with public employees. This year, it's one that would prohibit government entities from collecting union dues, etc from employees' paychecks. One year he did get one passed that eliminated the government paying our retirement contribution, but it got tossed in court because it was a contract issue.

Fortunately, the teachers' union is rich and is continually harassing him. They just dug into his finances and found he was using foundation money set up by the rich guys for his own use. This foundation also hasn't ever filed a tax return. It's fun to watch, but it's always kinda scary that one of these may pass. That's the ONLY good thing about living in a liberal state, they usually vote them down.

[phantasm]

NYS pension isn't taxable in NY (and some other states) either.

http://www.rpea.org/Tax_Info/tax_info.shtm

That link is where NY pensions are taxable.

[mcsap]

Does anyone besides me have the DROP pension ?

I can go 2 years and walk away with about 88 K plus interest.

[retdetsgt]

Does anyone besides me have the DROP pension ?

I can go 2 years and walk away with about 88 K plus interest.

My dept talked about the idea, but it never materialized.

Is that on top of what you make working the two years?

I got about 50K when I left from my accured vacation and sick time. Uncle Same ate up nearly 40% of it.

[ispcapt]

Hope you can keep it that way. The feds gave the state of Oregon the option of either taxing us or refunding years and years of taxes to the federal retirees. Not hard to guess what choice they made.....:rolleyes:

Not to say they won't in the future but for those of us who are retired they can't change our retirement bennies unless they change the Constitution. Even then, our attorneys tell us we're locked in. It's not likely the legislature will change it tho. They've got the same bennie and they're not going to make themselves pay more.

[retdetsgt]

Not to say they won't in the future but for those of us who are retired they can't change our retirement bennies unless they change the Constitution. Even then, our attorneys tell us we're locked in. It's not likely the legislature will change it tho. They've got the same bennie and they're not going to make themselves pay more.

They must have let federal retirees not pay the state income tax either then. Oregon could have done that, but they want the taxes too much.

[NyPd Sgt ALU]

In the NYPD Overtime is factored into your pension as well as night differential thats why most guys on the verge of retirement decide to work the midnight tour there last 2 or so years. Also we have that beautiful thing called the Variable Supplement upon retirement, which gives us a extra check of 12,000 every December for the rest of our lives. AHHHH I cant wait for that day..

[Cat_Doc]

Does anyone besides me have the DROP pension ?

I can go 2 years and walk away with about 88 K plus interest.

Yeah, we have DROP, but it was unavailable when I was eligible for my first retirement. Had it been in effect, I probably would have stayed an extra five years using DROP and built up around 250K.

Does yours have a guaranteed return, or is the market volatility going to hurt?

[mcsap]

Our pension ( aka DROP amount) is based on the average of what we catually made the last 3 years we worked. OT, Holidays etc ALL COUNT. As I am in my last 3 years...I am not shying aay frmo any OT.

Also included is my sick leave buyback which will be worth around 14K.

During the 2 year DROP, I will still work and receive a normal salary , benefits etc. However, what I make then can not in any way be factored or refactored into my pension.

At the end of those 2 years, I walk away with 2 years of pension payments , plus interest ( if any) :confused:

We have many DROP investment options from a fixed return to mutual funds managed by the same people that do our pension , Morgan Stanley.

[kels]

Dont come to Kansas, the cheaper of the two public retirement systems
is EMBARASSING.

Unfortunately, thats the one the county is under.............:mad:

[retdetsgt]

The pension was one of the things I considered strongly when I took the job. Even at the tender age of 25, I'd seen a number of my family members (including my Dad) not plan very well. As a result, other people ended up making a lot of decisions regarding their lives because they didn't have the power to make their own. My brother and I helped our parents as much as we could while we were raising our own family, but that was limited.

That's also why I invested (although some of that has tanked:mad and planned for this time in my life. I'm satisfied that unless I get dementia, I can make my own decisions as to where I live and how well. And I trust my family to use those resources wisely if I can't make those decisions. But it will never be a state or other government worker doing that.;)