Poll:How many here have a defined benefit pension?

[target2019]

This isn't the case. Here is the link for the COLA calculation for military pensions. Regular pay increases certainly depend on congress each year. However the cola is just arithmetic.

https://militarypay.defense.gov/Pay/Retirement/cola/

Thank you for posting this and correcting my mindset.

 

[skyking1]

So I'll will say we are SIRE, Pension is more than my former take home by about 10%.
Defined state pension with 100% survivors benefit. No set COLA but does get some (5% is currently in the works), DW is under the same retirement system in about 5 years. Both will have SS in the future. Both have 401K and Roth that currently equal 7 years of expenses.

I've been following along, medic, and yours is one of those cases where you don't have a big nest egg but you'll be fine. Our nest egg is a little light too, but I'm unconcerned. Your pension is a lot better off than mine!

 

[Irishgirlyc58]

I have a COLA’d pension from 35 years in California local government.
Pension continues on to my sons after I die.
Yes, I did take a big reduction in pension for that benefit but I’m happy with my choice.
My pension plus SS net pay is still more than my work net pay.

 

[Ian S]

In late 1988, I decided to leave my megacorp position to take a University position in Arizona. However, starting January 1989, vesting rules for defined pensions were changing and for my megacorp, vesting was changing from 10 years to 5. Since I'd joined megacorp in mid-1979, leaving at the end of 1988 would mean no pension benefit whatsoever but if I could clock even a little work time at megacorp in January 1989, I would get some pension when I turned 65. So we moved in late December, with me taking some vacation time through the end of the year and I returned to megacorp to work for a week in January 1989 before starting my new university position. I wondered at the time if it was worth the hassle but now I'm glad I did even if my monthly pension benefit is a meager $450. After experiencing the inflation of the 1970's to 1980's, I assumed that amount would be lucky to cover my phone bill 30 years later but it actually covers a lot more even without a COLA!

 

[old medic]

I've been following along, medic, and yours is one of those cases where you don't have a big nest egg but you'll be fine.

We can hope... Part of our success is with us both working public service... we learned how to get by on little money... and do most of our own work.

 

[Accidental Retiree]

Yes, not a good choice IMO. My DFIL is a type 1 diabetic and will be 89 in August. He doesn’t even take very good care of himself!

Three Type 1 women I was close to lived into their 90s.

 

[almost there]

I have a COLA’d pension from 35 years in California local government.
Pension continues on to my sons after I die.
Yes, I did take a big reduction in pension for that benefit but I’m happy with my choice.
My pension plus SS net pay is still more than my work net pay.

"I have a COLA’d pension from 35 years in California local government.
Pension continues on to my sons after I die."

Asking as a Ca. tax payer, how that is possible? Passing on a state pension to ones son's?
Lifetime for them as well?
Thanks

 

[latexman]

^^^^^

 

[skyking1]

We can hope... Part of our success is with us both working public service... we learned how to get by on little money... and do most of our own work.

That, and a huge ++++++ for a government COLA pension or two!

 

[Vacation4us]

"I have a COLA’d pension from 35 years in California local government.
Pension continues on to my sons after I die."

Asking as a Ca. tax payer, how that is possible? Passing on a state pension to ones son's?
Lifetime for them as well?
Thanks

I am not the original poster, but DH has a calpers pension too so I have an idea how it could be. Poster probably wasn’t married and could choose a beneficiary like all married pensioners.

You did catch the part that she had to take a huge reduction in her pension to pay for that benefit right?

Just like all annuities they use actuarial stats to determine the cost.

Hope that helps.

 

[skyking1]

Mine is about a 16% hit for 100% for the spouse.
11% hit for 75%.
As you said it's on the actuarial tables and my wife is 4 years younger.

 

[Mulligan]

I am not the original poster, but DH has a calpers pension too so I have an idea how it could be. Poster probably wasn’t married and could choose a beneficiary like all married pensioners.



You did catch the part that she had to take a huge reduction in her pension to pay for that benefit right?



Just like all annuities they use actuarial stats to determine the cost.



Hope that helps.

Good explanation. I had that option also for my daughter, but the reduction was too great on my end to do. Plus these things sometimes dont work out. If offspring doesnt live as long as expected or even with spousal reduction. My neighbor in 1986 took spousal reduction and she died in 1988. So he had to deal with a reduced pension the rest of his life until when he passed 3 years ago. This wasnt a government pension either.

 

[copyright1997reloaded]

"I have a COLA’d pension from 35 years in California local government.
Pension continues on to my sons after I die."

Asking as a Ca. tax payer, how that is possible? Passing on a state pension to ones son's?
Lifetime for them as well?
Thanks

Many DB pension (both public and private) offer this kind of option. The payments are adjusted to be actuarily the same. (Thus there is no additional expected cost to the issuer.) I did this w/my mega-corp pension. It was limited to a 50% J&S option for a non-spousal beneficiary. In my case, my ex is a few years older and my child (at the time) only seven. The amount my payments were reduced (from single life) to 50% J&S w/my child was approximately the same as having 100% J&S w/my ex.

 

[Chuckanut]

I like that term 'diet-cola' as a way of referring to pensions.

Mine is also a diet-cola plan. It's yearly COLA is capped. Since retiring the nationwide COL has been under the cap, but given the past six months, it looks like inflation will take a nice 5%-6% bite out of my real pension benefit adjusted for inflation.

I am still amazed that people are so quiet about this. I would think that certain senior organizations would be screaming from the roof tops about this. Sure, the SS increase is nice, but it isn't much compared to the value lost in retirement accounts and for those with fixed or diet-COLA pensions.

 

[marinauser]

Defined pension (no cola) from first 12 years of employment in the 70s and 80s so only worth about $600 a month when I turned 65 with surviving spouse option.

 

[jazz4cash]

I am still amazed that people are so quiet about this. I would think that certain senior organizations would be screaming from the roof tops about this. Sure, the SS increase is nice, but it isn't much compared to the value lost in retirement accounts and for those with fixed or diet-COLA pensions.

What exactly would they be screaming about. The pension formulas either include a COLA or they don’t. How would a pension fund pay for a COLA benefit if it is not already included in the formula. Pensions are already endangered species and this would hasten their demise. Most Gov’t pensions already have a COLA of some sort I believe.

 

[Vacation4us]

Good explanation. I had that option also for my daughter, but the reduction was too great on my end to do. Plus these things sometimes dont work out. If offspring doesnt live as long as expected or even with spousal reduction. My neighbor in 1986 took spousal reduction and she died in 1988. So he had to deal with a reduced pension the rest of his life until when he passed 3 years ago. This wasnt a government pension either.

DH had multiple options for his pension. 50% survivor was free, 75% and 100% decreased his pension by a dollar amount based on his spouses age.

There was also a guaranteed return of all the money he paid in.

What he chose was 100% survivor with a pop up option. If I, his spouse die before him he gets his original pension amount. The cost to cover me at 100% was much less than the 10% reduction he thought it would be. Ended up being about $500/month. I am about 8 months older than DH. He had at least 5 different options to choose from. None was a lump sum pay out.

He looks forward to the first of the month every month. I have peace of mind that if something happens to him I will only have to worry about a broken heart not $$.

 

[Magus]

Interesting that a strong majority here have pensions while only about 20% of retirees in the US as a whole have a pension at all. Perhaps the key to early retirement for most is really a pension. If that is the case, bodes poorly for folks in the future being able to retire early as pension accessibility continues to decline.

 

[punkinhead]

Interesting that a strong majority here have pensions while only about 20% of retirees in the US as a whole have a pension at all.

The majority of people responding to a thread asking about pensions have pensions. That's not a surprise.

 

[Magus]

The majority of people responding to a thread asking about pensions have pensions. That's not a surprise.

It’s a thread asking if people have a pension, not a thread about pension. Nuanced but important difference. Why would folks without a pension like myself be less likely to respond in your mind? At any rate, from other links posted to earlier threads here, not the only time with similar results.

 

[punkinhead]

It’s a thread asking if people have a pension, not a thread about pension. Nuanced but important difference. Why would folks without a pension like myself be less likely to respond in your mind? At any rate, from other links posted to earlier threads here, not the only time with similar results.

It would be like having a poll asking people if they have a sailboat. People with sailboats will reply because they want to talk about their sailboats. Most people without sailboats are just going to scroll past. The discussion is interesting but the poll is meaningless because the participants self-select.

 

[Magus]

It would be like having a poll asking people if they have a sailboat. People with sailboats will reply because they want to talk about their sailboats. Most people without sailboats are just going to scroll past. The discussion is interesting but the poll is meaningless because the participants self-select.

I think this is quite a bit different than a sailboat which would have little interest and relevance for most folks unless it was a boat forum we were on, but agree there is still some self selection bias. I think most early and potentially early retirees even without pensions like myself are still interest in pensions to some degree, if nothing else to consider the upside or not of buying one (annuity) or just to have a degree of self pity for not having one. That said, from what I've seen on this forum for people's comments on pensions even in threads not related to pensions, it does seem this forum has a disproportional amount of pension holders.

 

[ncbill]

Interesting that a strong majority here have pensions while only about 20% of retirees in the US as a whole have a pension at all. Perhaps the key to early retirement for most is really a pension. If that is the case, bodes poorly for folks in the future being able to retire early as pension accessibility continues to decline.

COLA pension plus free retiree health care (they both complained when they turned 65 and had to start paying Part B premiums) allowed my in-laws to retire nearly 30 years ago with a paid-off home but total savings i'd guess under $50,000 at the time.

They took SS at age 62 so they could spend it on travel while still able...now with both in their 80s they aren't traveling out of town anymore.

 

[wrigley]

This isn't the case. Here is the link for the COLA calculation for military pensions. Regular pay increases certainly depend on congress each year. However the cola is just arithmetic.

https://militarypay.defense.gov/Pay/Retirement/cola/

Thanks for the info. I never realized it existed.

Mike

 

[G-Man]

Non-cola pension for my wife and I starting at age 62 (wife) and 60 (me).