Lakewood90712
Thinks s/he gets paid by the post
- Joined
- Jul 21, 2005
- Messages
- 2,223
I worked for a very large city from 2001 to 2015. Was over 40 when hired. The city has thier own retirement system, not connected with the state. I draw a modest cola pension and medical subsidy. Formula is 2.16% at 30 yrs of service and 62 yrs age. Early retirement has signifigant reductions. Do 30 years , at age 62 draw about 2/3 of base pay.
A good 457 plan is optional.
During that 15 years, the employee contribution went from 6 % of base annual salary to 9.5 % . an increase of over 50% on the employee end. Largely due to truly crazy investments the pension system got into in the 2003-2007 era, and the 3rd actuary telling the truth that 7% return is a fantasy.
There is no spiking allowed in this system.
Those hired after 2009 have a lower benefit, but same contrubution, it is a 2 tier system.
I would absolutly do it again, but it's no free lunch. Realize that the original terms can inded change prior to retirement.
A good 457 plan is optional.
During that 15 years, the employee contribution went from 6 % of base annual salary to 9.5 % . an increase of over 50% on the employee end. Largely due to truly crazy investments the pension system got into in the 2003-2007 era, and the 3rd actuary telling the truth that 7% return is a fantasy.
There is no spiking allowed in this system.
Those hired after 2009 have a lower benefit, but same contrubution, it is a 2 tier system.
I would absolutly do it again, but it's no free lunch. Realize that the original terms can inded change prior to retirement.
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