I have an option of going into the Deferred Retirement Options Program this June. Here is the layout.
I can stay in it for up to 2 years.
My current salary is $130,000.
I can now retire with 70% (and do 2 years of Drop) or I can wait and retire normally in 6/2013 with 82%.
IF I am in Drop I make my current salary plus they put my retirement (70% plus 2% Cola) in a savings account, which I draw after the 2 years.
130,000 plus 91,000 plus 2000 for each of those 2 years.
I can do that for 2 years then enter normal retirment with my normal 70% (91,000) plus 2% cola the rest of my life.
Or,
I can just continue to work regular for 2 more years and up my retirement percentage to 82%. No Drop. But my salary would be $106,6000 plus Cola's for the rest of my life.
Which seems like the better deal?
Basically it comes down to, do I want a lower retirement percentage with a large chuck of cash up front? Or, do I just want to retire with a higher retirement percentage?
There are a few other small variables, but that is the main thrust of it.
I can stay in it for up to 2 years.
My current salary is $130,000.
I can now retire with 70% (and do 2 years of Drop) or I can wait and retire normally in 6/2013 with 82%.
IF I am in Drop I make my current salary plus they put my retirement (70% plus 2% Cola) in a savings account, which I draw after the 2 years.
130,000 plus 91,000 plus 2000 for each of those 2 years.
I can do that for 2 years then enter normal retirment with my normal 70% (91,000) plus 2% cola the rest of my life.
Or,
I can just continue to work regular for 2 more years and up my retirement percentage to 82%. No Drop. But my salary would be $106,6000 plus Cola's for the rest of my life.
Which seems like the better deal?
Basically it comes down to, do I want a lower retirement percentage with a large chuck of cash up front? Or, do I just want to retire with a higher retirement percentage?
There are a few other small variables, but that is the main thrust of it.