Poll:How many here have a defined benefit pension?
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googily
Full time employment: Posting here.
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I know people with the Graham Holdings pension. I also know people who were still employed by the Post when Jeff Bezos bought it--and then he froze the pension (which had already been closed to new employees by Graham Holdings well before the sale). This even though Graham Holdings actually paid Bezos a couple hundred million to help fund the pension for existing employees as part of the sale.
Bezos is just completely opposed on principle to old fashioned pensions. There is a cash balance plan, but it was a sweet, sweet pension for the people who got out before the sale.
Or so I've been told.
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FANOFJESUS
Thinks s/he gets paid by the post
Pretty close.$3382
Plus, any money I decide to take from my taxable portfolio, but I haven't taken any in several years.
That is good money in the middle of the country.
FANOFJESUS
Thinks s/he gets paid by the post
I am amazed at couples and singles that get above 80k all in.
Luvtoride
Thinks s/he gets paid by the post
Athena, hopefully they made up for the “no pension” with better pay or other benefits.
I’m very fortunate to be with a company for 33 years that I will be retiring from soon (within the year) that has had and still maintains a DB pension plan for every employee, including new ones hired today.
My DW retired from her job working for NYC about 7 years ago after 18 years of service. She has been collecting her DB (COLA) NYCERS pension since then while working for another company and now retired doing consulting.
We do consider ourselves blessed to have worked hard for these now rare DB pension benefits at this stage of our lives. I’m not sure what retirement will bring (or need to be cobbled together) for our adult kids and spouses who barely know what a pension is.
I had a DB pension until 2015 when I took a cash buyout from my former company. The money has been in a rollover IRA ever since. The pension had no COLA so it had been losing money relative to inflation.
The biggest advantage has been the ability to control payouts. Most months we have not needed to take any money out of the rollover IRA so that allows me to manage our taxes and cash flow. When I turn 72 in four years I will have to start taking RMDs from it, but that's OK.
The biggest advantage has been the ability to control payouts. Most months we have not needed to take any money out of the rollover IRA so that allows me to manage our taxes and cash flow. When I turn 72 in four years I will have to start taking RMDs from it, but that's OK.
athena53
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Yes, they did. The company that acquired us was a class act. If you weren't eligible for the pension they put an extra 6% of salary in your 401(k) every year, regardless of whether you contributed or not. They also matched 100% of your first 6%. So- you put in 6% of your salary but were getting 18% added to the 401(k). Investment options were also far superior.
I've seen it go differently in other companies: they terminated the pension plan and rolled out a 401(k) with no match or a stingy one, pocketing a lot of savings in addition to putting investment and longevity risks on the shoulders of their employees.
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I never had a 401k match the whole time I was working. It can make a big difference.
I think teachers with 30+ years of service get approx $80K if hired before 2011 in Illinois. No wonder this state is going broke.
Freedom56
Thinks s/he gets paid by the post
Our corporation had a pretty generous DB pension plan along with a 401K with 100% matching. I also received annual stock grants that I always cashed when vested. With our pension plan, you are eligible to collect from the pension plan starting at age 55 or if your age plus the number of years of service is 80. So technically, you could start receiving benefits at age 45 if you worked from age 20 for the corporation. The actual benefit depends on the number of years of service. Starting in 2006, new employees were no longer eligible for the pension plan. In 2009, the 401K matching dropped to 50%. Then in 2016, just one year after I retired, pension benefit accruals/credits stopped so the increase in benefits from the number of years of service was effectively capped. There is no COLA adjustment with my level income pension and the benefits drop by the social security amount at age 62. So there is no incentive to delay SS for us and in fact we add a COLA adjusted component by taking SS at age 62.
Like others here, our pension more than covers our living expenses and our investments continue to grow. With zero debt in retirement, we have been saving more in retirement than ever before. Other than covering excess income taxes on interest income from taxable accounts, there have been no withdrawals. Our investment accounts are now just insurance in the unlikely event that our pension is no longer solvent and the corporation decides to terminate benefits completely and the PBGC benefits fall short. Private corporation pensions were great while they lasted.
Like others here, our pension more than covers our living expenses and our investments continue to grow. With zero debt in retirement, we have been saving more in retirement than ever before. Other than covering excess income taxes on interest income from taxable accounts, there have been no withdrawals. Our investment accounts are now just insurance in the unlikely event that our pension is no longer solvent and the corporation decides to terminate benefits completely and the PBGC benefits fall short. Private corporation pensions were great while they lasted.
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TheWizard
Thinks s/he gets paid by the post
Correct.
I had a 403(b) plan for 40 years of employment where my employer contributed 10% of my salary to my mandatory 5% contribution.
I had an additional elective contribution of around $22k per year which I eventually maxed out.
I then "pensionized" a good portion of my employer's contribution for lifetime retirement income, so that made all the difference...
jazz4cash
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Megacorp was revamping the DB pension formula every few years according to business results so the result was something like
X years at Formula A
+ Y years at Formula B
+ Z years at Formula C.
No employee contributions were required but there was a bonus contributory benefit that I took full advantage of.
They added an employee friendly 401k w/ a match very early on in 1983 and kept the DB plan.
In 2007 they shifted to a career average salary formula for the DB plan. It was a straight 1.25% of annual salary cumulative benefit. It’s the fairest of all schemes IMO since there is no way to spike the formula. If you worked 30 years as a janitor before being named CEO in your last 3 years of service your pension benefit will be heavily weighted to the lower salary rather than being spiked by 3 years of high salary. I think they eliminated the DB plan for new hires at some point and replaced it with a 401k contribution.
I feel extremely blessed to have received a modest DB pension plus a great 401k. My retirement income streams (3 legged stool)are roughly 32/33/35 pension/SS/savings@4% = >100% of my final salary which feels great.
X years at Formula A
+ Y years at Formula B
+ Z years at Formula C.
No employee contributions were required but there was a bonus contributory benefit that I took full advantage of.
They added an employee friendly 401k w/ a match very early on in 1983 and kept the DB plan.
In 2007 they shifted to a career average salary formula for the DB plan. It was a straight 1.25% of annual salary cumulative benefit. It’s the fairest of all schemes IMO since there is no way to spike the formula. If you worked 30 years as a janitor before being named CEO in your last 3 years of service your pension benefit will be heavily weighted to the lower salary rather than being spiked by 3 years of high salary. I think they eliminated the DB plan for new hires at some point and replaced it with a 401k contribution.
I feel extremely blessed to have received a modest DB pension plus a great 401k. My retirement income streams (3 legged stool)are roughly 32/33/35 pension/SS/savings@4% = >100% of my final salary which feels great.
pacergal
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Same here, no 401 offered at all.
Finally got a 457 about 10-15 years in, no match allowed.
Eucerin
Recycles dryer sheets
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No pension here. Yes to 401k
Same thing here for us both...
Winemaker
Thinks s/he gets paid by the post
In PA, teacher salaries are dependent on local school districts. DW was a teacher for 30 years and never cracked $60k until her 30th year. She did RE at 58, so her salary might have grown over the past 7 years. Her pension is less than $33k and was dinged for early retirement.
The teachers in our district don’t make very much. I believe the starting salary is around $40K. Most of DS’s teachers were very dedicated and hardworking. If they have a good pension benefit, I’m happy for them.
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My young wife was a public school teacher for 30 years here in Connecticut. She gets a decent pension (not $80k), but she had to pay 6% of her salary every year toward that. And that's all she gets. She will not get her own social security, since Connecticut teachers (like Illinois teachers) don't participate in the social security system. She also will never get a spousal benefit or survivor benefit from me, due to the GPO.
But, you know, complaining that public servants make too much money is a time-honored tradition.
But, you know, complaining that public servants make too much money is a time-honored tradition.
almost there
Thinks s/he gets paid by the post
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Thats too bad its low in your. area The average for a teacher in my area is $72k / yr. after 25.5 yrs.
Its public info. Easy to Google. I know friends / family where husband and wife is receiving over $250k per year combined. High end public servants. LOL LOL
Only way its sustainable is when its paid VIA tax. Otherwise due to longevity its no longer an option.
Its public info. Easy to Google. I know friends / family where husband and wife is receiving over $250k per year combined. High end public servants. LOL LOL
Only way its sustainable is when its paid VIA tax. Otherwise due to longevity its no longer an option.
youbet
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
+1
That is why I'm not in favor of any SS reductions, or increased payments, for the kiddo's going forward. They have enough mountains to climb without subsidizing a bunch of geezers whose SS is only "gravy" or "icing on the cake" as we like to refer to SS here on the FIRE Forum.
Unfortunately I have a "church plan" and I have nothing in my files that they have sent me anything other than the monthly notice that they have deposited the funds in my checking account. I do have a number...but I'm almost afraid to call, since "church plans" have no protection if they go under. Maybe I don't want to know!
Ah, that's a very different thing.
Doesn't appear that you have much leverage.
https://www.pensionrights.org/issue/church-pension-plans/
