Pension question

[blueblazer]

Hi, I recently found out that cops in SDPD make 3%, times the number of years they've been working, of the amount they made in their highest paid year.

So, for example, if you work 30 years, and the most you got paid in one of the years, was 100K, then you multiply 30 yrs X 3%, which equals to 90%. And so you make 90% of 100K, every year, following retirement. That's 90K a year for not doing anything...

This was spoken to me, by an actual cop, by the way. I've been an aspiring cop for a while, myself, and I didn't know the pension was that good. Personally, I think it's a little too good to be true.

I asked around, to people who weren't actual cops, and they all said that it sounded funny, and they told me that I should probably ask a retired cop to see if the promises were true. Otherwise, they said it might just be recruitment hype.

So... is this true? Do cops really make that much money, once they retire? Or is there a huge catch that I don't know about?

Thanks a million!

[phantasm]

NYPD, and other NY police officers get 50% after 20 years. Other areas have different required years of service and different benefits. Some are 50% after 25 years, 2/3 after 25 years, 75% after 30 year.

[retdetsgt]

It varies from state to state and sometimes dept to dept. Mine is 2.8% per year served of your highest (up to 30 years), not counting overtime though. That's 80%. You can take a reduced amount to allow your spouse to get more when you die. If you take the max, they get 25% of your pension. If you take 2.6%, they get 50% etc. But only premium or hazardous duty pay counts on top of base pay. The rest of the state has some strange formula that I've yet to figure out.

The revamped the state system a few years ago because it was too generous, I guess. People could invest their contributions in a variable and for a while some were cutting a fat hog. An Oregon State Police Sgt who's a friend of mine retired with 103% of his highest pay. Enough people retired with that kind of money that the taxpayers revolted and they changed it. As I said, I still don't understand it and I doubt few people do.

[blueblazer]

It varies from state to state and sometimes dept to dept. Mine is 2.8% per year served of your highest (up to 30 years), not counting overtime though. That's 80%. You can take a reduced amount to allow your spouse to get more when you die. If you take the max, they get 25% of your pension. If you take 2.6%, they get 50% etc. But only premium or hazardous duty pay counts on top of base pay. The rest of the state has some strange formula that I've yet to figure out.

The revamped the state system a few years ago because it was too generous, I guess. People could invest their contributions in a variable and for a while some were cutting a fat hog. An Oregon State Police Sgt who's a friend of mine retired with 103% of his highest pay. Enough people retired with that kind of money that the taxpayers revolted and they changed it. As I said, I still don't understand it and I doubt few people do.

Ah, I see. So there is a catch. 30 years is the limit, and it doesn't count overtime. That would probably make it hard to ever earn 100K a year, without overtime, unless you're a Sergeant or Lieutenant.

Another question was, I understand that cops are basically a union. So they get raises, occasionally. That said, I'm pretty sure that 75 or 90% of what we're making today, will not be the same value, as say, 30 years from now.

My question is, if the union raises the percentage from 3% to 4%, ten years from now, do all cops benefit? Do retired cops benefit, as well? Or, does this merely affect the new applicants, AFTER the law is passed?

Thanks guys, I really appreciate that you're taking the time to answer my questions!

[blueblazer]

NYPD, and other NY police officers get 50% after 20 years. Other areas have different required years of service and different benefits. Some are 50% after 25 years, 2/3 after 25 years, 75% after 30 year.

Do you know what the base salary for a cop is, in NYPD? 'Cause I heard that SDPD has one of the lowest in California. I think it's 52K a year for PO1 with no college education.

[phantasm]

Do you know what the base salary for a cop is, in NYPD? 'Cause I heard that SDPD has one of the lowest in California. I think it's 52K a year for PO1 with no college education.

Based on the recently passed contract, starting salary is currently 40,361, top pay 73,546, with top starting/top pay increasing to 41,975 and 76,488 respectively effective 8/1/09 for the contract ending 7/31/10. That is base salary, not including longevity, holiday pay, overtime, uniform allowance, night dif.

all amounts are for 8/1/09.
Longevity for 5 years = 5,619, holiday pay = 3,227, uniform allowance = 1,000. OT & night dif vary from officer to officer. At top pay NYPD you're looking at a minimum of 86,334. A midnight cop will get 5,627 in night dif, a 4x12 5,208, bringing the totals just for showing up to work over 90,000. That is now. 20 years down the road the salary should be expected to rise. Possible to get 90k 20 years from now as a pension? Maybe.

[mcsap]

Hi, I recently found out that cops in SDPD make 3%, times the number of years they've been working, of the amount they made in their highest paid year.

So, for example, if you work 30 years, and the most you got paid in one of the years, was 100K, then you multiply 30 yrs X 3%, which equals to 90%. And so you make 90% of 100K, every year, following retirement. That's 90K a year for not doing anything...

So... is this true? Do cops really make that much money, once they retire? Or is there a huge catch that I don't know about?

You seem to quite casually brush over the fact that you have to work ( or perhaps endure is better) thirty years of being a police officer to qualifiy. If a person can last 30 years in this business , they have earned ( note I didn't say deserved) the pension they get.

After 25 years , I 'll make about 44 K a year from my pension. And if I choose to stay for 2 more years , I'll collect two years worth of pension while I am still working. So when I FINALLY walk out the door, I'll get a check for 88K plus interest and than continue receiving my pension.

[blueblazer]

You seem to quite casually brush over the fact that you have to work ( or perhaps endure is better) thirty years of being a police officer to qualifiy. If a person can last 30 years in this business , they have earned ( note I didn't say deserved) the pension they get.

After 25 years , I 'll make about 44 K a year from my pension. And if I choose to stay for 2 more years , I'll collect two years worth of pension while I am still working. So when I FINALLY walk out the door, I'll get a check for 88K plus interest and than continue receiving my pension.

Absolutely. I'm not saying that the pension has not been "earned."

However, there are so many people out there, who aren't making anywhere close to that kinda money, even while working. I just thought it was too good to be true. I'm sure once you work as a police officer for 30 years, it's gonna feel like it makes perfect sense to earn that much, if not more. But it's like the other officer in this thread mentioned, tax payers will throw a fit, as people observing from the outside, may feel like the pension is unmerited.

Thank you for answering. ;)

[blueblazer]

Based on the recently passed contract, starting salary is currently 40,361, top pay 73,546, with top starting/top pay increasing to 41,975 and 76,488 respectively effective 8/1/09 for the contract ending 7/31/10. That is base salary, not including longevity, holiday pay, overtime, uniform allowance, night dif.

all amounts are for 8/1/09.
Longevity for 5 years = 5,619, holiday pay = 3,227, uniform allowance = 1,000. OT & night dif vary from officer to officer. At top pay NYPD you're looking at a minimum of 86,334. A midnight cop will get 5,627 in night dif, a 4x12 5,208, bringing the totals just for showing up to work over 90,000. That is now. 20 years down the road the salary should be expected to rise. Possible to get 90k 20 years from now as a pension? Maybe.

Great info. Thanks for sharing. :cool:

[manahmanah]

I am in a 3% @ 50 agency. Overtime does not count. However, there are other things to consider. If you receive night shift differential, FTO pay, SWAT pay etc.....THAT goes into your retirement when considering your highest year, but not overtime. I think CA police officers have one of the best retirement plans in the country, if you are part of PERS. I now San Jose PD is not part of PERS, they have their own retirement plan.

[ispcapt]

Retirement benefits depend upon the state and which agency in that state. For my agency we only have to work 26 yr 8 mo to max our retirement at 80%. You can actually max sooner subtracting any accummulated sick time which can knock off about a year if a person hasn't used much sick time in their career. Our retirement is based on high salary which includes OT. A Troop with 25 yrs on has a base pay of a bit over $95K/yr. Working just minimal OT they'll be over $100K/yr. A Troop who works OT details could have a retirement check over $100K/yr. Because there are fewer deductions when you retire we actually clear more after retirement than when working. If Troop dies before his spouse then the spouse collects 50% for life.
Other retirement benefits include - 3% cost of living increase every year, no state income tax, free medical for life on the retiree and reduced medical cost for dependants For my wife it costs me $84/mo for full medical coverage with $15 co-pay for for doctor visits, $10 co-pay on all meds, and $100 co-pay on any hospital visit.

[retdetsgt]

Other retirement benefits include - 3% cost of living increase every year, no state income tax, free medical for life on the retiree and reduced medical cost for dependants.

No state income tax? Does Illinois have one? We lost that benefit because a bunch of federal retirees in Michigan sued that state saying that if retired state employees didn't have to pay, then they shouldn't either. We have to pay now. They give us a small additional pay to help make it up, but it covers about 2/3 of the taxes....:mad:

Your medical is awesome. No public agency in Oregon gives that kind of benefit. I buy mine through the city, but it's about $800 for my wife and I. Great insurance, but spendy.

[ispcapt]

No state income tax? Does Illinois have one?
Yup, 3.5%. No personal property tax tho as some states have.
One of the benefits is no state income tax on state retirement benefits.

Your medical is awesome. No public agency in Oregon gives that kind of benefit. I buy mine through the city, but it's about $800 for my wife and I. Great insurance, but spendy.
The medical is a big thing particularly when you retire, get older, and start having major medical problems. The yr I retired I was in the hospital 3 times with 2 surgeries for kidney stones. Total medical bills was over $125,000. It cost me out of pocket $110. Free medical for life is a great benefit. Even if I should die before my wife she still will get her medical for life at the reduced rate.
The medical is not just the ISP but for all state of IL employees. It's one of the benefits for being a state employee. The downside for the regular state employees tho is their pay is substantially less than what they could make in private business. It probably all evens out tho as while they get a lower salary they don't have to pay medical where in private business they might make more of a salary but have to pay more medical.

[Cat_Doc]

It varies from state to state and sometimes dept to dept.

Yep.

The OP needs to check into individual systems and should avoid lumping them all. Some states, municipalities, counties have vastly different retirement systems and associated benefits. Some are better than others.

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.

This hurt, especially in the early years when struggles were made; looking for change in the couch cushions and living pay check to pay check. It was not until seniority and/or rank was made that we could start realizing Maslow's Theory and building on the foundation of basic needs with desired wants such as eating out, going to movies, TV's, nice stereos and other "toys."

We earned every single penny of our retirement; working rotating shifts, missing holidays and school plays with our family, the occasional trip to the emergency room and running toward the sound of gunfire while others ran away from it. Some paid the ultimate sacrifice.

For those who made it to retirement still standing vertical with the same amount of holes in their body as when they started, they also have the right to tell any whining public to kiss their *** when it comes to complaining about the street warrior's pension.

[retdetsgt]

No state income tax? Does Illinois have one?
Yup, 3.5%. No personal property tax tho as some states have.
One of the benefits is no state income tax on state retirement benefits.

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: