Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 10-16-2016, 07:01 PM   #41
Thinks s/he gets paid by the post
JoeWras's Avatar
 
Join Date: Sep 2012
Posts: 1,755
When you fund your own pension, you understand just how much it takes.
__________________

__________________
JoeWras is online now   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-16-2016, 08:19 PM   #42
Thinks s/he gets paid by the post
gauss's Avatar
 
Join Date: Aug 2011
Posts: 1,516
@Running_Man
Thanks for filling in the legal details on how this can occur.

-gauss
__________________

__________________
gauss is offline   Reply With Quote
Old 10-16-2016, 08:24 PM   #43
Thinks s/he gets paid by the post
RobbieB's Avatar
 
Join Date: Mar 2016
Location: Central CA
Posts: 1,462
CALPERS is huge and until now I didn't know they were in trouble.

My girlfriend has an interest and me thinks I will advise her to transfer to an IRA.

I do not trust pension plans.
__________________
Retired at 59 in 2014. Should have done it sooner but I worried too much.
RobbieB is offline   Reply With Quote
Old 10-16-2016, 08:32 PM   #44
Thinks s/he gets paid by the post
Senator's Avatar
 
Join Date: Feb 2014
Location: Eagan, MN
Posts: 2,309
I think that is the risk the employees took. Just as she would have said before the issue arose that anyone could have gotten a government job and received a great pension too.

No pension is 100% safe. Public or private. It's not right, but unless there is some sort of claw-back provision, it is what it is.

The reality is, Governments receive plenty of money; they just prefer to spend it on other things than a pension program.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
Senator is offline   Reply With Quote
Old 10-16-2016, 08:50 PM   #45
Thinks s/he gets paid by the post
RobbieB's Avatar
 
Join Date: Mar 2016
Location: Central CA
Posts: 1,462
I saw some paperwork they sent her, she asked for my advice.

She is divorced from her husband who is a CA Fireman.

CALPERS gave her some choices, take the dough (10% penalty, not 59.5), transfer to IRA or just leave it here for 6% forever. Six percent forever sounded good to me...

Now it doesn't sound good anymore.
__________________
Retired at 59 in 2014. Should have done it sooner but I worried too much.
RobbieB is offline   Reply With Quote
Old 10-16-2016, 08:52 PM   #46
Full time employment: Posting here.
 
Join Date: Jan 2013
Posts: 612
Quote:
Originally Posted by RobbieB View Post
CALPERS is huge and until now I didn't know they were in trouble.

My girlfriend has an interest and me thinks I will advise her to transfer to an IRA.

I do not trust pension plans.
As a local agency, miscellaneous member of CalPERS, I have been collecting a small pension from CalPERS for around 10 years. I worked for a large local government in the 80's and easly 90's that has always paid its contributions to CalPERS and is in no financial danger of not doing so.

The crediting rate for contributions is high, around 7 percent when I was accruing, before I retired. Over time, that crediting rate may not be sustainable, and agency and member contributions may increase. That does not mean the system will fail.

I would NOT advise someone to pull their money out of CalPERS based on a headline story. Dire predictions for CalPERS' future have been circulating for many years, even decades. If you are nearing retirement age and you do/did not work for a small, broke member entity, you are likely better off leaving your contributions in the system and collecting the pension.

Do the math, and then keep a close eye on the health of the system. And, of course, save and invest in other vehicles as part of your multiple streams of income approach to retirement security.
__________________
Another Reader is online now   Reply With Quote
Old 10-16-2016, 08:59 PM   #47
Full time employment: Posting here.
 
Join Date: Jan 2013
Posts: 612
Quote:
Originally Posted by RobbieB View Post
I saw some paperwork they sent her, she asked for my advice.

She is divorced from her husband who is a CA Fireman.

CALPERS gave her some choices, take the dough (10% penalty, not 59.5), transfer to IRA or just leave it here for 6% forever. Six percent forever sounded good to me...

Now it doesn't sound good anymore.
Sorry, I missed this. If she is close to retiring or at least to taking the CalPERS annuity, have her make an appointment with CalPERS to get them to do the annuity calculation. Then do the math. In general, most people are better off with the monthly retirement check.
__________________
Another Reader is online now   Reply With Quote
Old 10-16-2016, 09:04 PM   #48
Thinks s/he gets paid by the post
RobbieB's Avatar
 
Join Date: Mar 2016
Location: Central CA
Posts: 1,462
Thanks.

She is 51 and a half and has a split (divorce decree) of her husband's pension and I have no idea how this works. She is working as a sub in the CA public school system now.

I'm going to have to research this some me thinks.
__________________
Retired at 59 in 2014. Should have done it sooner but I worried too much.
RobbieB is offline   Reply With Quote
Old 10-16-2016, 09:16 PM   #49
Full time employment: Posting here.
 
Join Date: Jan 2013
Posts: 612
Did/does he work for a local agency or did/does he work for the state? Employees of local agencies are "miscellaneous members." Miscellaneous members are not eligible for CalPERS health insurance and some other benefits. Retirement ages and percentages also vary by agency.

I'm not sure what divorced spouses are entitled to, so my suggestion is to get as much information as you can about her account on-line. If she is entitled to an annuity at 50, go with her to a CalPERS retirement appointment and have them run the calculations.

ETA: Make sure CalPERS has a copy of the divorce decree. They need that to make the allocation.
__________________
Another Reader is online now   Reply With Quote
Old 10-16-2016, 09:34 PM   #50
Thinks s/he gets paid by the post
RobbieB's Avatar
 
Join Date: Mar 2016
Location: Central CA
Posts: 1,462
I'm sure they have it, that's why they sent her the paperwork. As I remember an annuity was not an option. She could cash out, transfer to IRA or leave it in the system at 6%.

He is a city/county fireman, she was a stay at home Mom after the first child and has not worked in the 15 years from first child to divorce.

I'll look at it again to be sure.
__________________
Retired at 59 in 2014. Should have done it sooner but I worried too much.
RobbieB is offline   Reply With Quote
Old 10-16-2016, 09:59 PM   #51
Full time employment: Posting here.
 
Join Date: Jan 2013
Posts: 612
There may not have been an annuity option when this came up if she was too young. It's worth looking into to see what the options are now. However, at a guaranteed crediting rate of 6 percent, I would be inclined to leave the money in until I had strong evidence that the pension system was failing. CalPERS is NOT Illinois.
__________________

__________________
Another Reader is online now   Reply With Quote
Reply

Tags
ponzi pension


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Noticed more people holding signs "need work or food" rayinpenn Other topics 3 05-03-2015 03:51 PM
Now even girls are playing the Ponzi game mickeyd FIRE and Money 4 09-03-2010 04:28 PM
Millenium Bank is a Ponzi Scheme....... FinanceDude FIRE and Money 9 03-27-2009 09:20 PM
What if Vanguard is just a giant ponzi scheme? soupcxan FIRE and Money 62 12-28-2008 08:12 PM

 

 
All times are GMT -6. The time now is 01:48 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.