your pension situation

Discussion in 'General Education' started by FourSquare, Aug 9, 2017.

  1. FourSquare

    FourSquare Fanatic

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    What retirement benefits (if any) do you receive as a teacher? We are not able to receive Social Security benefits, so I purposely chose to work in a district with a decent pension plan. I keep reading about how our pension fund is going to go broke or be completely nonexistent by the time I retire. This is horrifying to me, as I'm so afraid of being old and broke. My only other funding source is a very small Roth that I'm building on my own. Is your district doing any better?
     
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  3. novaguy1968

    novaguy1968 MS English Educator

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    Why aren't you getting social security?
     
  4. vickilyn

    vickilyn Maven

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    The only other person I knew who said something like that had been working for the federal government.
     
  5. FourSquare

    FourSquare Fanatic

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    Some states don't pay teachers SS. I'm in one of those states. I don't fully understand it enough to tell you why that is. :confused:
     
  6. Teacherhere

    Teacherhere Companion

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    Those states you don't pay into SS either. So you can always put into a Roth. Those plans in your state are very generous. Just be glad you get a pension in the first place. You are right the state will be broke, (CA correct?) All the money is unfunded liabilities. However, you will get your pension, they may be squeezing their boot on taxpayers neck to get it, but they promised it and will just tax to get it. So I wouldn't worry, but yes CA has very poor economic policy.
     
  7. gr3teacher

    gr3teacher Phenom

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    Assuming I make it 30 years in my district, I'll get 24% of my final pay through a county retirement fund (or if I leave before 30 years, I'll get 0.8% x years of service once I hit age 60), plus somewhere in the neighborhood of 50% of my final pay from the fund fund. I'm basically relying on those two funds plus Social Security, I don't have any other retirement accounts at the moment.

    (EDIT: I need 90 years combined age+service for the state fund, so to go directly from working to sitting on the front porch yelling at kids to get off my lawn with the casual assurance of a man getting a full retirement check, I'll need 32 years of service in-state)
     
    Last edited: Aug 9, 2017
  8. FourSquare

    FourSquare Fanatic

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    I'm in IL, actually.
     
  9. Teacherhere

    Teacherhere Companion

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    Similar political and economic policy.
     
  10. Upsadaisy

    Upsadaisy Moderator

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    My pension is non-existant. I worked in private schools. Sigh. Seemed fine when I was young. It's not so fine now.
     
  11. janlee

    janlee Devotee

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    I am retired for 3 years and am very happy with my pension. Almost half of what I made my final year of teaching. I waited 3 years to take SS so my benefit would be higher. I also have a 403B, IRA, and a Roth. Have no worries about my pension. I actually get a COLA every year after 5 years.
     
  12. Ima Teacher

    Ima Teacher Phenom

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    Teachers don't get social security here. We do pay into Medicare, though. I pay into the state teacher retirement plan. DH and I have been to the state retirement office to get personalized information about retiring at 27 years vs. retiring at age 55. We both plan on working to age 55, but when we ran the numbers we would be okay if we retired after 27 years. I'll have to see how I feel when the time comes.

    If we retire at 27 years, it would be a percentage of my top 5 highest salary years. If I wait until age 55, it changes to the top three years. It won't make much difference to me with base salary because I'm at the top of the salary scale now, and we aren't likely to get significant raises between my 27th year and age 55. My sick days are where I'll see the difference waiting until 55. I'll get paid for my sick days, and that adds to my last year's salary. I have 102.5 sick days now, and I have the potential for 91 more before age 55.
     
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  13. agdamity

    agdamity Enthusiast

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    We have a strong pension in addition to social security. My state has one of the strongest pension systems in the country. After 28 years, you get the average of your three highest years each year until you die. If you want to leave your pension to your spouse should you precede them in death, you get a smaller percentage (I think somewhere between 60-65%), each year until you die, then your spouse continues to get that amount for life. There is also an option to T-DROP for 10 years once you hit 28 years, where they freeze your salary as far as what counts towards your pension, but assuming you work the next ten years, the amount taken from your checks goes into a separate retirement account which could accrue $500,000 in that time. So, assuming you teach 38 years, you retire with $500,000 plus average salary pension, plus SS.

    My state may not have a ton of perks for teachers, but the retirement ROCKS!!!
     
  14. waterfall

    waterfall Maven

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    No SS in my state for teachers either. Right now, the best you can get is 87% of the average of your last 3 years of salary. That's after putting 35 years in. I definitely worry that it will no longer be around/be significantly less by the time I qualify. I'm only 8 years in.
     
  15. bella84

    bella84 Enthusiast

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    This sounds very similar to my state. Truthfully, the stability of the pension system in my state is one of the top - if not the top - reason I returned after a single year in IL. My current state has a fully funded pension system. I pay a large percentage of my salary into it (14.5%), but that's how they keep it fully funded. I should have a pretty decent pension when I'm ready to retire. That said, I've also started an IRA by rolling over funds from four other pension systems (three of which were in IL), so hopefully that'll help me out as well.
     
  16. AlwaysAttend

    AlwaysAttend Groupie

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    State Supreme court in NJ already ruled once that the State cannot be compelled to make a payment into the pension system that would hurt the state budget significantly. I can't remember the exact ruling but that was the gist.
     
  17. Teacherhere

    Teacherhere Companion

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    Well I don't live in any those states. I believe state governments should make sound decisions on pay for employees paid by taxpayers: teachers, police, firefighters, etc. It is not fair to promise one thing and receive something else. These are jobs of service, but the state needs to allocate the funds responsibly so it is feasibly to the state and taxpayers.
     
  18. bella84

    bella84 Enthusiast

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    I find it interesting how different states choose to fund their pension systems differently. In my state, the state government contributes nothing. Our system is fully funded simply through employee and employer contributions (each are mandated to pay 14.5% of the teacher's salary), plus the investment returns that those contributions bring in.
     
    Last edited: Aug 9, 2017
  19. AlwaysAttend

    AlwaysAttend Groupie

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    Native Americans were promised their land until it was no longer their land. Being together is a promise made at the beginning of every marriage yet they often end in divorce. Promises are broken all the time. It's not possible to pay out any of the unfunded liabilities. That includes Social Security. They can't just print more money. Ask Venezuela. We can stick our heads in the sand or plan accordingly.

    You state pension is only as strong as the stocks supporting it. Is there another Maddof scandle out there? Is the pension heavily invested? You can't guarantee anything in life.
     
  20. AlwaysAttend

    AlwaysAttend Groupie

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    It is fascinating. In NJ, teachers and police/fire are actually handled differently. For police and fire, municipalities pay in directly and as a result, their pension is in much better shape. They seem scared they will merge both pensions together.
     
  21. Teacherhere

    Teacherhere Companion

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    Yes I agree, but there should be laws that ensure these services are funded. If we as society want these services then we should fund them sufficiently. I'm actually only in favor with the services we want. I say to privatize everything, police fire, education, etc. However, that won't happen. I hate the political realm of our taxpayer money. The most staunch liberatian probably doesn't want to pay for their child's education because we have been conditioned to it being free. I think America needs to make a clear decision on the socialist policies they want and don't.
     

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