nun
Thinks s/he gets paid by the post
- Joined
- Feb 17, 2006
- Messages
- 4,872
My state is allowing a one time transfer of contributions made to the DC state pension plan to the DB state pension plan. It was initiated by the teachers union as many of their members lost a lot of money in the 2007 recession. It's controversial because of the "moral hazard" involved and the choice between DB and DC plans was supposed to be a one time deal, but the legislators gave into lobbying. I'm against the transfer in principle, but did it anyway because I think it's a good deal......what do you think? Here are the final numbers.
I'm a 54.5 year old single male and took $279k from a TIAA-Traditional account earning 4% a year and bought a $19.6k annual pension that will start when I'm 55....in 6 months time. There is a COLA on the first $13.0k which has averaged 3% for the last 20 years with the COLAed amount also getting regular increases, the last one being in 2011 when it went from $12k to $13k. If I die early a designated beneficiary also gets a lump sum payout of the "actuarially calculated balance" of my pension account.
I'm a 54.5 year old single male and took $279k from a TIAA-Traditional account earning 4% a year and bought a $19.6k annual pension that will start when I'm 55....in 6 months time. There is a COLA on the first $13.0k which has averaged 3% for the last 20 years with the COLAed amount also getting regular increases, the last one being in 2011 when it went from $12k to $13k. If I die early a designated beneficiary also gets a lump sum payout of the "actuarially calculated balance" of my pension account.