Pensions? Who has one?

[matt267 PE]

I started with the state 10 years ago with the promise of a pension. The system has been hacked up pretty bad. I'm now in a hybrid system. Folks that have been around for 20+ years are still full pension people. I will have a small defined payout, but I'm mostly going to get payments from a 401K type savings plan.

 

[Ramnares P.E.]

I have one at the moment. II've heard that the Union folks are now being offered 401k only. That means at some point we'll be transitioned to 401k only also. I hope by the time we get to that point I'll have enough time to be offered pension only.

 

[Ramnares P.E.]

Coincidentally good timing for this article:

http://nypost.com/2015/10/11/when-pensions-implode-silicon-valleys-lesson-for-new-york/

 

[akwooly]

I do. But folks hired after 2006 are in a 401k type retirement.

 

[csb]

I have one. For us, people hired after 2012 (I think) are on a lesser plan and they have to pay more in.

 

[matt267 PE]

Didn't realize you all were government workers.

 

[csb]

Because we're so awesome?

 

[Dexman PE PMP]

Isn't it obvious, we have a ton of available time.

 

[matt267 PE]

Because we're so awesome?

While this true.....

Isn't it obvious, we have a ton of available time.

This is more likely.

 

[Dexman PE PMP]

Here, anyone hired before 2005 has a pension, but the rest of us have a 403(b). It's like a 401k but I cannot contribute to it. The agency puts in a 9% equivalent into the account every paycheck, and I can determine how aggressive I want to invest it. 0% vested until you hit the 5 yr anniversary (which I did in June). If I leave, I will have to roll it over into another retirement plan of some sort.

Last I checked, it was worth just over $55k.

 

[matt267 PE]

I have a 401A as part of my hybrid system.

I also have a 457 plan that is optional that I contribute to.

 

[csb]

I also have a 457 that I have money in.

 

[zelgar]

Indiana still has a pension (after 10 years of service) and the optional 457 plan.

 

[GoldfishJack]

Whoa I am late to the game here, just got access. I have a pension also, luckily I got into the retirement system a couple of years before they switched it to hybrid. They also offer a 457 and 401a that I opted in. Another 5 more months and I will be vested so yay. The hybrid plan here is half pension half 401k so similar to most of ya'lls.

 

[snickerd3]

pension bound...they tired to make a switch to 401k sort of set up and change some rules but the state court systems found the change unconstitutional  We do have a defered comp option if we choose to use it but they do not match anything and we have to pick from what they have available.  

 

[Dleg]

When I worked for state government (territory, actually), I had a pension but opted into a 401k when they transitioned into that in 2006.  I was worried the pension plan would go broke.  My wife made the same decision, but now that she is "retired" I think it was a bad one.  The pension plan, even though it is hurting badly and has been restructured in federal court, is still giving out money and is worth more than the paltry amount she took away when we left a few months ago.  So my advice to anyone would be to strongly consider staying in the pension system if given an alternative - chances are they'll always find a way to pay out the benefits, due to the massive political pressure to do so.  The 401k payouts are scary small. 

I'm now in the military pension system, but I understand we will be given options soon on whether to stay in or to go with a proposed new system, which is more 401k like but supposedly quite generous.  The old system is tough - you do 20 years or you get nothing, but if you make it to 20 it's a really good deal (except maybe for VA health care  ) The new one provides some retirement benefit for people who can't or don't want to do 20 years.  Given that I entered so late in life, and would be 63 at a minimum when I can retire, I have some thinking to do. 

 

[ptatohed]

I am on CalPERS (California Public Employees' Retirement System).  I am grandfathered in to the pre-recession plan which is 2.7% at 55.  I think the latest plan is 2.0% at 62.  Meaning, if I retire no sooner than age 55, I'll get 2.7% per each year of service, of my highest annual salary.  I started at 31 so I have about 9 years in.  So, let's say I have 25 years of service when I retire and my highest annual salary was $100,000, my pension will be .027 x 25 x $100,000 = $67,500/year.  Is this similar to other states? 

 

[matt267 PE]

My minimum retirement age is 62. I think I get 1% of my pay per year of service of the average of the 5 highest salary years. I will also be able to draw from the 401k style fund I'm forced to be in. I contribute 8.25% percent of my pay. 3.75% goes to the pension fund and the rest goes into the 401k fund. I also electively contribute to a 457 plan.

 

[snickerd3]

ours is a percentage per year with a cap somewhere in the 60% range based on the avg of the last 4 yrs of salary

we follow the rule of 85 for retirement here

 

[ptatohed]

I'm the first to admit my benefits are way too generous.