almost there
Thinks s/he gets paid by the post
- Joined
- Sep 24, 2008
- Messages
- 1,018
That's really nice! Was your job state or federal?
I get monthly pension checks, COLA'd and 100% medical paid. I am one of those people who like the security of that monthly check. I was never a seasoned investor and so would have major anxiety every month!
Most local agencies don't pay into SS.Were you also part of the SS system?
Most local agencies don't pay into SS.
@LinCella
Ouch on retirement medical for newer hires. Medical really is a big burden on pension systems. A few years back, we started contributing an extra 4% for medical. For our system (Tier 1), those under age 65 need 25 years of service for full medical reimbursement (but only for single party premium, I think). Those retiring at 65 or older only need 20 years to get 100% reimbursement for Medicare Part B premiums (we don't pay SS but we do pay 1.45% for Medicare).
At least I was lucky enough to still be in Tier 1. Tier 2 employees have greatly reduced pension benefits. For Tier 1, as long as you have 30 years of service, you can retire at age 55 with full pension (ER starts at 45 but with reduction factor). For Tier 2, normal retirement has been pushed back to 65 years old.
Really not sure what they're going to do about the brain drain, though. Government usually pays a lot lower than private but at least before, the benefits were really nice. Now, Tier 2 pension benefits are not attractive at all. Oh well, at least employee medical is still good. For married couples, I think our health insurance is like $1000-2000 away from being considered a "Cadillac" plan.
It's not even just the retirees. Every year, we have highly skilled and trained scientific and technical professionals who leave for greener pastures because there hasn't been COLA for years and City pay is lower in comparison.The Brain Drain is a real problem in my city. Since we can retire early, people in their 50's and early 60's are gone taking with them years of great experience. However, my workplace, the public library, was more than happy to get rid of the "dinosaurs" - their term not mine! I was a fantastic librarian and these young folks - albeit not a drain on the city coffers now - still have very little experience. I go in as a customer now and cringe when I hear these young librarians try to answer questions...I want to jump in but as a "dinosaur" that would be dangerous.
Not sure they can, though. I guess that's the primary reason Tier 2 was instituted. I think for our system, previously earned medical benefits is also a contractual issue. However, if we didn't agree to pay 4% for retiree health, they would have capped the subsidy amounts at existing levels (which probably wouldn't be worth much after 20 years of rapidly rising health care costs).Mulligan - our paid medical is a contractual issue. However, my city has never changed the terms of any retiree's contract under which they retired. However, being in California there are many who want to take away my pension entirely!