Emeritus
Full time employment: Posting here.
- Joined
- Feb 27, 2009
- Messages
- 886
"I suppose my MegaCorp pension is pretty typical, let's see. My pension calculation on 28.x years of service provides for ~ 38% of my Final Average Earnings if I take it at 65. Cut it in half to take it at 55YO (19%). Multiply by .77 for 100% Survivor benefits, that gets us to 15%. No COLA at all. "
Something is not right or Mega Corp is simply vicious. The actuarial calculation, (supported by lots of studies) for a spousal pension at age 55 is closer to 10 %.
The early retirement reduction already compensates mega corp for any added spousal costs due to early retirement. Also a multiplier of 1.3 is fairly low even at megacorp, unless it is a non contributory pension.
If its not contributory you have to allow for the difference. I contributed 7% of salary to my pension for 30 years. I would also point out the obvious, that salaries are typically higher at Mega Corp than at Ohio Counties
My wife is in FERS. The multiplier is one percent of salary with a match of 5% on the 401 k equivalent (TSP) with a cap based on the IRS limit. If you work the math, after 28 years of service at age 60 her whole package is worth 39% of her high three, without providing for survivor benefits. She also contributes to the system
Something is not right or Mega Corp is simply vicious. The actuarial calculation, (supported by lots of studies) for a spousal pension at age 55 is closer to 10 %.
The early retirement reduction already compensates mega corp for any added spousal costs due to early retirement. Also a multiplier of 1.3 is fairly low even at megacorp, unless it is a non contributory pension.
If its not contributory you have to allow for the difference. I contributed 7% of salary to my pension for 30 years. I would also point out the obvious, that salaries are typically higher at Mega Corp than at Ohio Counties
My wife is in FERS. The multiplier is one percent of salary with a match of 5% on the 401 k equivalent (TSP) with a cap based on the IRS limit. If you work the math, after 28 years of service at age 60 her whole package is worth 39% of her high three, without providing for survivor benefits. She also contributes to the system