State Government Employee Meeting with the retirement office is tomorrow

[hmrambling]

What is the reduction for, say, a 50% surviving spouse option?

$195.70 month. I'm leaning toward this option.

 

[Al18]

One word of caution - be absolutely sure you get paid for 1/2/27 and that day marks your 30 years of employment. I have a friend who worked a few hours on his last day January 2 on a non-government job and did not get paid for the last day.

 

[stepford]

$195.70 month. I'm leaning toward this option.

So about 3.6% cost to get the 50% survivor benefit. My wife is considering a similar option in her imminent retirement, but the 50% survivor benefit would drop her pension by 5.3%. Yours is a significantly better deal.

 

[Taco]

$195.70 month. I'm leaning toward this option.

3.6% is a pretty good deal. Often it is in the 5-10% range.

So by taking 96.4% instead of 100% of the max amount, you are buying a lifetime of good steady income for your wife should something happen to you. I'm glad you are leaning toward doing this - I think it is a wonderful idea to do so.

Another thought...
For a spouse not all that interested in financial matters (not sure how much can safely be withdrawn from IRAs, etc.), the simplicity of a steady monthly pension check is bound to be very comforting.

 

[mystang52]

Following today's meeting, I have a checklist that includes providing my birth certificate, changing my email address, and adding my wife as a beneficiary, all of which are indicators that my agency has not been properly forwarding documentation on to our retirement system.

It definitely made for a frustrating meeting when the retirement rep verified that I've submitted my wife's social security card and birth certificate but that she's not listed as a beneficiary for purposes of retirement estimates. Looks like there's going to be some back and forth before we get everything straight and ready for retirement.

I don't see it as frustrating, but rather showing the benefit of you scheduling that meeting in the first place. Now you know what ducks you need to set in a row. DW was a school teacher. We had 2, maybe 3, meetings with the NJ pension department to make sure we had everything set up correctly. Like you, that first meeting helped us finish up some loose ends. It was either meeting # 2 or #3 (if there was a 3) that verified we had everything ready to go. It felt good to have her ER with no unanswered questions.

 

[FIYes]

Taco, I was just going to say what you said…a spouse who is not interested in finances is likely to have a difficult time managing a safe withdrawal rate from IRAs, etc. The option for a spouse to continue to receive a steady pension check has many advantages.

Hmrambling, you won’t miss the $195.70 and both you and your wife will have peace of mind. You mentioned that your DW won’t get social security, but with the Social Security fairness act she will be able to draw a spousal benefit.

 

[hmrambling]

@mystang52

You nailed it. The back and forth with my retirement system and HR is more frustrating (so far) than actually pulling the trigger on option 4B which leaves DW 50% of my benefit. It looks like I will be fighting an uphill battle just to get everything submitted.

Through my work email, I'm able to see that I've submitted information to HR that the retirement system didn't have (and hasn't updated). Sad.

 

[hmrambling]

One word of caution - be absolutely sure you get paid for 1/2/27 and that day marks your 30 years of employment. I have a friend who worked a few hours on his last day January 2 on a non-government job and did not get paid for the last day.

I originally thought my eligibility date was 2/15/27. The millisecond the retirement system told me 1/2/27, I thought, "who goes back to work on January 2nd?" lolol

Historically, for the last pay period HR collects the last two weeks time and enters it prior to separation. That should be the case when I retire but who knows with this HR office.

 

[old medic]

Through my work email, I'm able to see that I've submitted information to HR that the retirement system didn't have (and hasn't updated). Sad.

Forward any important E-mails to your private email

 

[hmrambling]

What is the reduction for, say, a 50% surviving spouse option?

Now that HR sent me the packet to complete, I'm seeing that our 4B option is 55% for about $197.xx, rather than 50%.

That's hard to pass up.

 

[hmrambling]

1st off congratulations.... We both spent years in NC state system. 36 for me DW is coming up on 27.
My very 1st suggestion is to go to the states retirement site and read this Member’s Guide to Retirement – LASERS then re read it. My local HR had very little working knowledge of the system. Its funny that they referred people to ask me questions even after I retired.
We went with 100% survivor's benefit. Its close to $300/month less between the 2 but worth the simplicity should something happen to one of us. Besides you seem to have plenty saved if you need an extra $300/mo...
Double check the resignation rules... Even though I had submitted my retirement paperwork 120 days before my date, I still had to write a letter of resignation and give it to the same office, as a supervisor 1 month before or they could WITHHOLD my vacation pay out.
My director knew YEARS ahead of time that I was leaving. They begged pleaded and I managed to stay... When I decided that 1/1/2022 was the date, I handed the secretary my resignation letter, she teared up and set it on fire....

I downloaded the Members Guide. HR sent me the retirement package. It includes a form for resignation. I'll need to get clarification if I'll need to type up a resignation letter in addition to completing the form. I've spoken informally with my supervisor and she knows I'm not going to be around in 2027 but I haven't given a set date yet.

 

[old medic]

I'll need to get clarification if I'll need to type up a resignation letter in addition to completing the form.

I had my director sign mine and framed it...
DW has started her paperwork too...

 

[Koolau]

I had my director sign mine and framed it...
DW has started her paperwork too...

Resignation letter? What's that? I walked into my boss' office and said "Don, Friday will be my last day."

This was on a Tuesday. Before the day was over, my Director stopped by my office to be certain I was okay and asked politely why I was leaving. I told her that my new assignment was what I did when I was first empl*yed 35+ years ago. I told her that I didn't want to do it and I didn't need to, so I was leaving instead. She gave me a hug. I swear she did.