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Seems that they have just made me make the move
Old 08-23-2006, 06:44 AM   #1
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Seems that they have just made me make the move

Article this morning in the Star Ledger...


Lawmakers consider pension benefit changes
One of the four joint legislative committees on tax reform will hear testimony today on what steps the state can legally take to reform the state pension system.

The Joint Legislative Committee on Public Employee Benefits Reform will hear a presentation from the non-partisan Office of Legislative Services (OLS) on the legal issues involved in reducing retirement benefits to current members in the various state-administered public employee retirement systems.

The committee also will hear testimony on the same topic from the Governor's legal advisory team.

"At this stage, we have a responsibility to look at every aspect of New Jersey's pension and benefits systems before we even begin discussing specific reform proposals," said Nellie Pou (D-Passaic), a committee co-chair. "We need clarity on the legal parameters so this committee has the ability to make meaningful reforms with the full support of the law."

The committee is scheduled to meet at 10 a.m. in the Statehouse Annex in Trenton.




I HAVE MY LETTER all ready to be sent TODAY to my employer. My retirement date IS JANUARY 1 2007!

Not gonna stay the full year, these situations look like at some time bennies will be reduced, like the way they calculate early retirements.

Plus I LIKE IT DOWN HERE IN NC!

So my finances will look something like 33,000 a year with a COLA and medical bennies for my wife and myself, she gets 27,000 with a COLA if I DIE .

In addition the mortgage will be paid down to only a balance of about 35,000. Payment of 322 a month taxes 270 a month.

Fixed costs look like 16,000 a year.

I have part time work lined up for feb 07 already, track coach position at a private high school.

It really is all good!

I am really excited that it has crystalized into a solid decision.

Thanks for everyones support on my ramblings over the past year.

I really have had enough with the city of newark nj.
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Re: Seems that they have just made me make the move
Old 08-23-2006, 06:54 AM   #2
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Re: Seems that they have just made me make the move

Newguy,
I wonder if your boss knew this retirement proposal change was coming and tried to lock you in before you found out. The timing seems awfulling suspicious to me or maybe I'm paranoid.
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Re: Seems that they have just made me make the move
Old 08-23-2006, 07:06 AM   #3
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Re: Seems that they have just made me make the move

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Originally Posted by Arif
Newguy,
I wonder if your boss knew this retirement proposal change was coming and tried to lock you in before you found out. The timing seems awfulling suspicious to me or maybe I'm paranoid.
Nah

They have been talking about changes for a while.

The democratic gov will not screw us that bad however I do see the formula for early retirements being changed back to age 60 from 55 age wise.

So if I were to stay and they changed the formula the additional year put in would be wiped out by the increase of age requirement and loss of percentage. I could work the entire year and be at the same pension as if I leave today.

My 50% of salary could become 46% of salary. It is time to go.

I am so darn fired up today and its what 8am! I read that article at 5am!
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Re: Seems that they have just made me make the move
Old 08-23-2006, 07:30 AM   #4
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Re: Seems that they have just made me make the move

Well Merry Christmas! How many times in life do we get a definite answer on what to do with our lives. Take the misses out and celebrate.
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Re: Seems that they have just made me make the move
Old 08-23-2006, 07:43 AM   #5
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Re: Seems that they have just made me make the move

Newguy, as a fellow NJ sheeptaxpayer, I think that you would be wise to wind things up as quickly as possible. The political climate is getting ugly on taxes here, and I think that public employee pensions and benefits are headed for the chopping block in some fashion.
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Re: Seems that they have just made me make the move
Old 08-23-2006, 08:56 AM   #6
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Re: Seems that they have just made me make the move

Quote:
Originally Posted by newguy888
I am really excited that it has crystalized into a solid decision.

I really have had enough with the city of newark nj.
Newguy, I found myself in a very similar situation. Nothing like reading in the paper how they are going after pension reductions to motivate one to put in the paperwork to leave. I remember holding the telephone receiver just before I called HR and thinking Man, if this isn't the sign that it is time for me to go, I don't know what is. Congratulations and good luck!
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Re: Seems that they have just made me make the move
Old 08-23-2006, 09:39 AM   #7
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Re: Seems that they have just made me make the move

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Originally Posted by brewer12345
Newguy, as a fellow NJ sheeptaxpayer, I think that you would be wise to wind things up as quickly as possible. The political climate is getting ugly on taxes here, and I think that public employee pensions and benefits are headed for the chopping block in some fashion.
I have had that feeling for sometime. So glad we were able to cash out and sell the house when the market was at close to peak.

I am amazed at how many of the same houses that were on the market back in april are still there and prices down 30 grand on average, and that is just the listing price!

Now I have been watching the BS that is going on in Trenton and this morning was the kicker. I am sitting here online reading that article and a light goes off in my head. All I have to do is give these guys 90 day notice. I have already given the state of NJ my retirement application a few weeks back, all I was doing was holding my papers that must go to my employer until I got back to school in 2 weeks. But I mailed them 30 mins ago to Human resouces. Now when I show up for the first day of work after labor day my dates are set. Last day of school before Xmas break is dec 22. That IS my last day of teaching in NJ!
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Re: Seems that they have just made me make the move
Old 08-23-2006, 10:02 AM   #8
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Re: Seems that they have just made me make the move

Not to say your decision wasn't right for you....

BUT, knownig how gvmt works.... and how slow they are... I doubt very seriously there will have been ANY reform within the next year...

And, let's say there actually WAS some reform... I doubt it would have affected you anyhow.. they usually do not change the people that are about to retire.. it is the younger folks that get screwed...

But then again, I have alway thought the gvmt pension system was way to generous and then they kept making it better...
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Re: Seems that they have just made me make the move
Old 08-23-2006, 10:07 AM   #9
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Re: Seems that they have just made me make the move

Congrats and good luck NewGuy. Clarity is a wonderful thing
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Re: Seems that they have just made me make the move
Old 08-23-2006, 10:10 AM   #10
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Re: Seems that they have just made me make the move

Quote:
Originally Posted by Texas Proud
Not to say your decision wasn't right for you....

BUT, knownig how gvmt works.... and how slow they are... I doubt very seriously there will have been ANY reform within the next year...

And, let's say there actually WAS some reform... I doubt it would have affected you anyhow.. they usually do not change the people that are about to retire.. it is the younger folks that get screwed...

But then again, I have alway thought the gvmt pension system was way to generous and then they kept making it better...

Oh yes slow

However the formula withh age 55 was only changed 6 years ago which increased our pension about 4 %

They are and have been talking heck there is a bill in the senate that would raise that BACK to 60 years of age which if it did occur for this year my year spent here would not increase my pension in fact would drop it by about 125 dollars a month.

HELLO Jan1!
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Re: Seems that they have just made me make the move
Old 08-23-2006, 10:19 AM   #11
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Re: Seems that they have just made me make the move

"my wife gets 27,000 with a COLA if I die"

I don't tell my wife about this sort of stuff or what my life insurance is worth-Don't want to give her to much incentive !

Congrats and Good Luck !!!

Mudd
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Re: Seems that they have just made me make the move
Old 08-23-2006, 10:43 AM   #12
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Re: Seems that they have just made me make the move

congrat on your decision newguy

I am also in NJ and I am following what is going on very carefully.
My situation is a bit different though.

I am a consultant, I am renting, DS is a homeschooler and DW is not working.

I have been waiting for some changes to make some decisions wrt where I will live in the future. We kind of like where we are but staying here is difficult due to:
- High cost of housing (maybe 40% overvalued ?) we tried to buy a home about 2 years back when it might still have made sense. Combined with the highest property tax rate in the country. Doesn't make sense to buy here right now
>> Waiting for property tax reform
>> Waiting for a real decrease in housing price
- Combined with highest cost of health insurance in the country. It doesn't make any sense to buy it! $1,200/month for $10,000 deductible. (There is no mistake about the numbers of zeros!).

Now 40 yo with about $1M of assets and no debt to speak of I have been making computations about moving to a place with lower housing and health insurance cost that would allow me to be pre-retired or at least reduce significantly the expense budget. This is difficult with current costs in NorthNJ (but not totally impossible).

I have been refusing good out of state job opportunities for the sake of stability for my family and because being an employee... well you know that. Also the consulting business brings good money right now.

I am guessing the positive changes in Trenton - if they happen - will not take place right away (I am talking about property tax and health insurance reforms).

As for the pension system Gov Corzine had said no change to long term state employee, only recent hires would be affected.
How good is this state pension calculation that everyone in NJ is talking about?

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Re: Seems that they have just made me make the move
Old 08-23-2006, 10:48 AM   #13
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Re: Seems that they have just made me make the move

Quote:
Originally Posted by Mudd
"my wife gets 27,000 with a COLA if I die"

I don't tell my wife about this sort of stuff or what my life insurance is worth-Don't want to give her to much incentive !

Congrats and Good Luck !!!

Mudd
Funny, I am taking out a term 10 year policy for an additional 250K for about 300 bucks a year and when they came for my blood work the wife was there watching then waited for the past three weeks for the results. Me heck I was only interested in my cholesterol numbers as That I have to see my cardiologist in september and heck, This life ins company PAID for a full lab workup! No need for me to spend a penny for blood work that my doc ordered for him to see before I go for my 6 month check up next month.

Anyway the results come back and SHE opens the mail up to see. HIV NEG, HEP B and C NEG she was an ICU nurse for 20 years and was worried I guess from her needle sticks and exposure to patients with all kinds of BUGS!!

Heck they even did cocaine marijauna and alcohol checks. Glad I kept the tequilla bottle locked away the night before my test!!

By the way cholesterol down 30 pts, LDL down 20 points HDL up 10 points.

No drugs just running 10 miles a day and eating close to a veg diet!
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Re: Seems that they have just made me make the move
Old 08-23-2006, 10:55 AM   #14
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Re: Seems that they have just made me make the move

Quote:
Originally Posted by perinova
congrat on your decision newguy

I am also in NJ and I am following what is goind on very carefully.
My situation is a bit different though.

I am a consultant, I am renting, DS is a homeschooler and DW is not working.

I have been waiting for some changes to make some decisions wrt where I will live in the future. We kind of like where we are but staying here is difficult due to:
- High cost of housing (maybe 40% overvalued ?) we tried to buy a home about 2 years back when it might still have made sense. Combined with the highest property tax rate in the country. Doesn't make sense to buy here right now
>> Waiting for property tax reform
>> Waiting for a real decrease in housing price
- Combined with highest cost of health insurance in the country. It doesn't make any sense to buy it! $1,200/month for $10,000 deductible. (There is no mistake about the numbers of zeros!).

Now 40 yo with about $1M of assets and no debt to speak of I have been making computations about moving to a place with lower housing and health insurance cost that would allow me to be pre-retired or at least reduce significantly the expense budget. This is difficult with current costs in NorthNJ (but not totally impossible).

I have been refusing good out of state job opportunities for the sake of stability for my family and because being an employee... well you know that. Also the consulting business brings good money right now.

I am guessing the positive changes in Trenton - if they happen - will not take place right away (I am talking about property tax and health insurance reforms).

As for the pension system Gov Corzine had said no change to long term state employee, only recent hires would be affected.
How good is this state pension calculation that everyone in NJ is talking about?

How good, well with our higher salary yes we get a decent pension, NOTHING Super though as the media hype would have you think. I will have taught for 28 years and contributed 5% of my salary each year.

Now because I am leaving before the age of 55 ,I will be just shy of 51 I lose 11% for the life of the pension, So my yearly pension after all the computations is about 33K a year with a COLA , Now we do get health bennies for life which IS the BIG number!

Americans MUST DEMAND that the GOVERNMENT pick up health care FOR ALL americans! Now that is a topic we should leave alone.

So in my case my pension is worth abot 40K with the health benifits.

Deductables are increasing though. Who knows . But I am out of NJ sold my big center hall OVERPRICED colonial for a crazy number just before the slow down. In the neighborhood we sold in april the same houses are still on the markey with much lower prices and still unsold.
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Re: Seems that they have just made me make the move
Old 08-23-2006, 11:01 AM   #15
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Re: Seems that they have just made me make the move

Quote:
Originally Posted by Texas Proud
BUT, knownig how gvmt works.... and how slow they are... I doubt very seriously there will have been ANY reform within the next year...
And, let's say there actually WAS some reform... I doubt it would have affected you anyhow.. *they usually do not change the people that are about to retire.. it is the younger folks that get screwed...
You have a charming faith in large soulless bureaucracies. *While I was reading this thread, I was just thinking that Newguy will be darn lucky the upcoming changes aren't made retroactive to 1 Jan!

When I was in the middle of a transfer to my final duty station, the Bureau of Personnel sent out form letters informing us unpromotable O-4s that we would shortly be discharged unless we could individually prove to their satisfaction that the Navy would benefit from our presence. *Because they knew I was transferring they sent it to my new duty station, where I received the notification three days after my response deadline had expired.

Luckily they were too incompetent backlogged with enthusiastic responses to notice that I was late with mine. *But whenever I read about events like Newguy's, I have no faith that any system will take care of us.
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Re: Seems that they have just made me make the move
Old 08-23-2006, 11:06 AM   #16
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Re: Seems that they have just made me make the move

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Originally Posted by Nords
You have a charming faith in large soulless bureaucracies. While I was reading this thread, I was just thinking that Newguy will be darn lucky the upcoming changes aren't made retroactive to 1 Jan!

When I was in the middle of a transfer to my final duty station, the Bureau of Personnel sent out form letters informing us unpromotable O-4s that we would shortly be discharged unless we could individually prove to their satisfaction that the Navy would benefit from our presence. Because they knew I was transferring they sent it to my new duty station, where I received the notification three days after my response deadline had expired.

Luckily they were too incompetent backlogged with enthusiastic responses to notice that I was late with mine. But whenever I read about events like Newguy's, I have no faith that any system will take care of us.
Nords I gotta say I have been thinking of that very fact. I COULD quit as of Dec 1, my 90 days takes me to Nov 30.

But I have a district that has a pay situation that gives me 10K of my 4 month salary in DECEMBER!

Jan 1 Is it. I am darn happy with my decision, in fact when my wife gets home she does not know I sent the letter today we are goin out !
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Re: Seems that they have just made me make the move
Old 08-23-2006, 03:32 PM   #17
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Re: Seems that they have just made me make the move

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Originally Posted by newguy888

Oh yes slow

However the formula withh age 55 was only changed 6 years ago which increased our pension about 4 %

They are and have been talking heck there is a bill in the senate that would raise that BACK to 60 years of age which if it did occur for this year my year spent here would not increase my pension in fact would drop it by about 125 dollars a month.

HELLO Jan1!
Then great... glad you got it in in time...

Yes, things can change.. my sister got out in the middle of the year because of the ability to get spouse SS of her husband... they have closed that loophole, but 6 or 9 months after she retired... but I had pushed her to do it when she did... there are sometime that they backdate legislation if they had put the bill in for consideration... (ie, the date the bill is submitted can be the effective date, not when it becomes law)..
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Re: Seems that they have just made me make the move
Old 08-23-2006, 04:37 PM   #18
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Re: Seems that they have just made me make the move

My feeling is that I played by their rules for 28 years. I have already submitted my state retirement papers as of the end of july. So as far as I am concerned the rules are set for me. If they change them during this period I will sue the bast@rds!!

Anyway the wife just got home I must show here my postal ticket showing the letter was sent to my employers human resource department return receipt certified mail!

Man it feels right.
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Re: Seems that they have just made me make the move
Old 08-23-2006, 11:27 PM   #19
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Re: Seems that they have just made me make the move

Congtats newguy. You're better off being in NC in Jan 07 instead of being up in NJ.
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Re: Seems that they have just made me make the move
Old 08-24-2006, 08:28 AM   #20
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Re: Seems that they have just made me make the move

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The democratic gov will not screw us that bad however I do see the formula for early retirements being changed back to age 60 from 55 age wise.

So if I were to stay and they changed the formula the additional year put in would be wiped out by the increase of age requirement and loss of percentage. I could work the entire year and be at the same pension as if I leave today.
good luck...even if the proposal doesnt go through....you will be happier for the decision
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