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Old 02-10-2014, 08:23 AM   #21
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Oh, forgot to add. The pension is based on 2.5% per year of service of your high three year's pay, normal retirement is now 20 years (law enforcement, you really don't want 60-year-olds doing that) but was 25 years at 2% per year. They also credited unused sick leave which for me was almost two years so I went out with a bit over 30 year's service credited, or a bit over 70% of the high three years.

I feel very, very lucky. How many 22-year-olds are thinking about retirement when they start a job? I sure wasn't.
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Old 02-10-2014, 08:26 AM   #22
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Actually have two. One low five figures annually at age 65, one mid five figures annually which I can start collecting on at any time although I'm probably going to wait a few more years. Both non cola'd.

Also have retiree health where I pay the same premium as employees for health. Company plan backstops Medicaid when I get to 65. No dental or vision included.
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Old 02-10-2014, 08:26 AM   #23
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Yes, albeit a small, long-frozen one representing my first 11 years working in industry. It will amount to less than $700 a month at age 65 in 2030, at least at the 100% joint and survivor level. No COLA, so if inflation rages in the next 15+ years this pension will be even punier.

Still beats a sharp stick in the eye, though.
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Old 02-10-2014, 08:45 AM   #24
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Another dinosaur here with a pension and health care, though no COLA. DW also has a pension with health care and some COLA.

I was sure that my Mega Corp would go bust, so I saved and invested to retire at 55 in any case, thus belt and suspenders, now.

Current workers at Mega just get some 401(k) matching as economic conditions warrant.
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Old 02-10-2014, 08:47 AM   #25
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Had one at Megaconglomocorp, frozen in 1998 when I was outsized; cashed out for $23k.

Have one coming from current j*b, will likely be in the $500-600/mo. range when I take it (62?). Non-cola.
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Old 02-10-2014, 09:01 AM   #26
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Yes, Civil Service Retirement System with COLA and health benefits.
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Old 02-10-2014, 09:10 AM   #27
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One legged pension retirement stool here. WEP essentially takes away my SS scraps. They reduced our COLA from CPI to fixed 2% a couple years ago. I might not get the last laugh but the first two years this has increased my COLA, not decreased it. It is significantly above my monthly living expenditures so if it ever gets reduced down the road, I should be fine.
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Old 02-10-2014, 09:27 AM   #28
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Originally Posted by PERSonalTime View Post
Hey, does your organization offer any kind of pension program? If so, do you have one and what is it like? Also, do you also have any other source of retirement income?
Actually, the question is framed a little twisted. I'm probably not alone in that my organization does not (currently) offer a pension program. But I have a pension, from when they did offer one. It was modified several times since I was hired (but you always kept what you had 'earned' to date).

Since my pension is not Cola'd, and the $ amount was locked in when I retired, and I can't take that amount until 65 (payments would be cut in half if I took it at 55), I'd estimate that the value to me is significantly less than the value of my SS. DW will get smaller SS and a small pension (but that does have a 3% COLA-Lite).

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Old 02-10-2014, 10:08 AM   #29
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We have a defined contribution pension and it is non-cola. It is currently in critical status (and has been for a number of years) but is expected to emerge this year.

We took a significant hit on the percentage due to funding. For now at least, we get a check which is about 22% of DH gross earnings when he was working. Chose the 100% survivor benefit in case he goes first, which reduced the monthly amount as well.

But it is nice to get a deposit each month when not working!
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Old 02-10-2014, 10:14 AM   #30
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I have CSRS (Federal pension) and a very small, $65 per month pension, of my late husband's coming when I reach 65.
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Old 02-10-2014, 10:29 AM   #31
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I have a small one, about 10% of what I was earning when I retired. The cash flow was 8% annual return of the value if I cashed it in, with a 3% COLA. I decided that was a no-brainer. I'm expecting an even smaller one when I turn 65, with little or no COLA. I'm reserving my decision on that one (TIAA).

DH has a bigger one, with a partial COLA. Since he had it when we met, and he is much older than I, my RE strategy was to save enough to replace his pension if and when I survive him. Which we have done.
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Old 02-10-2014, 10:32 AM   #32
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Yep. ~$130/month starting in 2038. I'm planning on earmarking it for wine. And I'm hoping inflation doesn't go rampant or all I'll be drinking is an inflation adjusted two buck chuck.
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Old 02-10-2014, 10:43 AM   #33
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Yep. ~$130/month starting in 2038. I'm planning on earmarking it for wine. And I'm hoping inflation doesn't go rampant or all I'll be drinking is an inflation adjusted two buck chuck.
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Old 02-10-2014, 10:47 AM   #34
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I have one coming. It goes up almost 8% every year I don't take it - so I'm waiting until 65yo to start collecting. This along with SS should pretty much cover my expenses. I better take care of myself and enjoy this (future) income as long as possible.
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Old 02-10-2014, 10:55 AM   #35
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Nope, just a combination of personal savings and SS for me. I could make it without SS but am sure glad it's there.
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Old 02-10-2014, 11:04 AM   #36
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Hey, does your organization offer any kind of pension program? If so, do you have one and what is it like?
I am receiving non-COLA'ed pensions from companies who no longer offer DB pensions to their current employees. In combination the pensions provide our basic needs. In due course I will also receive UK SS, and both DW and I have US SS to look forward to.

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Also, do you also have any other source of retirement income?
We both also had 401k's which we rolled over to IRA's after we ER'ed, and DW's Megacorp had a cash balance pension plan that she also rolled over to an IRA. This and some after tax savings is providing our 'fun' money which is currently mostly spent on travel.
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Old 02-10-2014, 11:44 AM   #37
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Got two, neither of which are COLA. One from a company I worked 13 years till 92 which doesn't pay much because it was based on salary, which at that time was low compared to today's pay. The second from my current company of 10 years, but they stopped doing it in 2006 now they match new employees with .5% more into their 401K contributions.

All in all though not a bad deal and I can't complain, it is after all free money. I expect that when I retire early next year I will be taking out both pensions early at 60 to the tune of 12K a year which should just cover the essentials. Been toying with the idea of lump sum and roll into an IRA but still have to run the numbers.

Of course it all depends on the numbers, but what are the pros/cons of rolling over a lump sum vs. taking the pensions early?
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Old 02-10-2014, 12:01 PM   #38
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I have two old/frozen pensions.

The first was a traditional DB (non cola) pension - but was frozen when the company was acquired by a bigger company in 2000. I plan to draw in it when I can, when I turn 55. It will provide about $140/month. (100% joint survivorship)

The second was from the bigger company - and was frozen in 2008. It's a defined contribution plan with lump sum payout, or annuity. If I take the annuity - it will provide about $360/month, 100% joint survivorship if I start taking it age 55. Also Non-Cola.

So that's $500 month. Not enough to live on. Not cola'd... but provides a tiny third leg of my stool.

Hey - $6000/year is better than nothing.

FWIW - the co-CEO that froze the pension was one of the highest paid CEOs the year they froze it. He retired with a 38M lump sum when they sold us again, in 2011.

I'd prefer the package he got.
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Old 02-10-2014, 12:05 PM   #39
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Old 02-10-2014, 12:05 PM   #40
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DH has a state public employees pension from 26 years of employment with a county social service agency. He lost his job in 2010 but had enough years (minimum of 25) and he just squeaked by on the minimum age of 55.

It was calculated on 2.2% x FAS (3 yrs) x years of service and then reduced to 80% for being 26 years instead of 30. Then we took the 100% to survivor option so it was reduced another 12%. The first years benefit was just about 42% of his working gross pay. That may not sound like much but for us it is plenty. There is a fixed COLA of 3% based on the first year, not compounded.

While working he contributed 10% of his pay to the pension plan and his employer contributed 14%.

His retirement also includes a Health Care benefit, not guaranteed. It was very generous when he retired in 2010, benefit level options and hefty subsidies for both DH and I. Starting in 2012 they made changes to the health care benefit which started with loss of choice of lower cost levels and notification of a 3 year transition to lower subsidy amounts for DH and eventual elimination of any subsidy for spouses. The final confirmation of Obamcare has given us the option to leave the pension system health care plan. Originally we wouldn't be allowed back in later but that was changed and now DH may return at Medicare age in 2020 if the pension plan has any health care benefit left for the retiree.

So the Health Care benefit has been a disappointment but the pension itself has been marvelous. Like Walt34 we feel like the pension is a dinosaur plan that will never be seen again. The fixed yearly 3% COLA is lovely and really makes a difference. Our 29 year old son is in the same pension system and they have already changed the years of service and age requirements for retirees beyond 5 years out. The changes include a COLA based on an index with a maximum COLA of 3%.

I worked full time until 1984 and then a very part time job from 2006 to present so I will have a small SS benefit of $535 at age 62 or $740 at FRA of 66 and 2 months.
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