mangodance
Dryer sheet aficionado
- Joined
- Mar 22, 2005
- Messages
- 26
Anyone here have experience with the annuity-side from an education institution?
I like the low fees and ease of getting to a person with TIAA-CREF as well as the long-term view. However, another circumstance has me considering a slight shift.
In KY, a state worker (or teacher, or county govt worker, or police) needs to work a total of 27 years within one or all of the govt retirement systems w/in the state (each system reciprocates w/the others). At 27 years, regardless of whether or not you've reached 59.5, you start collecting your monthly pension the month after you retire.
They currently have a benefit which will likely not be renewed when it expires in 2008. At 15 years, you can buy up to 5 years worth of "ghost-time" or "air-time". This would give one 20 years if you bought all five years. However it does not count towards your insurance elgibility (100% eligible for state kick-in at 20 years of WORKED time).
Anyhoo... I've been saving in a 401(k) to transfer funds to the retirement system when eligible. The legislature in its infinite wisdom decided too many people were taking advantage of it and raised SUBSTANTIALLY the cost of purchasing time. It was already substantial enough, but the latest increase will cost me another $18,000. However, the good side is that it would start a 7-year clock ticking that would allow me to collect a check for the rest of my life...and before 50! Not huge, but more than SS!!! And the first $41,000 and change from annual retirement monies is exempt from state tax.
So... in order to make it happen now that they jacked-up the rates, I'll need to dip into my small retirement pool I have from my university days...the TIAA-CREF. We like them, and would consider new Roths with them as soon as this payout is made. I'm afraid if I wait, the politicians will take the thing away, or increase it ever more. My monies under the university retirement have an annuity option. Our Roths would not. Is anyone currently using the T-C annuity side from retirement accounts from an educational field? I'm wondering what I'd really be missing.
Also, any thoughts by others on any aspect?
I like the low fees and ease of getting to a person with TIAA-CREF as well as the long-term view. However, another circumstance has me considering a slight shift.
In KY, a state worker (or teacher, or county govt worker, or police) needs to work a total of 27 years within one or all of the govt retirement systems w/in the state (each system reciprocates w/the others). At 27 years, regardless of whether or not you've reached 59.5, you start collecting your monthly pension the month after you retire.
They currently have a benefit which will likely not be renewed when it expires in 2008. At 15 years, you can buy up to 5 years worth of "ghost-time" or "air-time". This would give one 20 years if you bought all five years. However it does not count towards your insurance elgibility (100% eligible for state kick-in at 20 years of WORKED time).
Anyhoo... I've been saving in a 401(k) to transfer funds to the retirement system when eligible. The legislature in its infinite wisdom decided too many people were taking advantage of it and raised SUBSTANTIALLY the cost of purchasing time. It was already substantial enough, but the latest increase will cost me another $18,000. However, the good side is that it would start a 7-year clock ticking that would allow me to collect a check for the rest of my life...and before 50! Not huge, but more than SS!!! And the first $41,000 and change from annual retirement monies is exempt from state tax.
So... in order to make it happen now that they jacked-up the rates, I'll need to dip into my small retirement pool I have from my university days...the TIAA-CREF. We like them, and would consider new Roths with them as soon as this payout is made. I'm afraid if I wait, the politicians will take the thing away, or increase it ever more. My monies under the university retirement have an annuity option. Our Roths would not. Is anyone currently using the T-C annuity side from retirement accounts from an educational field? I'm wondering what I'd really be missing.
Also, any thoughts by others on any aspect?