Texas Teacher Retirement/other options?

[Joseph.Silas]

Before I pose this question- I'm not looking for criticism. None of that actually helps anyone. I am looking for "If this was your situation what would you do?" answers. I don't want any "Well, if you had...." whatever the rest of that statement would be is essentially not helpful, because if I had done whatever you're about to suggest--maybe I would not be asking anything. That said.... what I am looking for here is pure impartial advice to a question and it's a bit complicated in terms of the choices in front of me from people who know education and maybe will understand all of these deep questions more than the average person will ?

To some-- the answer will seem easy. To others.... you may understand my conflict and as a result will instantly understand why I am asking. There are some related factors that I won't go into here--just because of some of the privacy related to it--but, yes those factors are the underlying issue that creates this whole scenario-

That said.... here is my question:

As a teacher in Texas, we pay into Texas Teacher Retirement. The system is NOT a good one. For me, normal age retirement is 65. I am 52. So, I certainly have more time to pay in. I also pay a little into a Roth IRA. Not a lot, but I do what I can after rent, and all the things.

That said, I don't love Texas. Less and less these days. The political climate and how it's affecting me personally is a lot. Maybe others can just ignore it. And I can too to a degree, but it is also getting dragged into teaching and schools and that bothers me.

As it stands now, my Texas Teacher retirement will give me about $2200 a month when I retire. Yes, I'll also have some income from the Roth IRA too. Even tho with other jobs I have paid into Social Security too, teachers can't really draw from it. If we do, it will be reduced due to the WEP. My TX teacher retirement was affected by me having to withdraw some funds in 2010 due to a massive personal issue. I can't really talk about it--but, yea it will definitely drag on my teacher retirement to which I can't do much about at this pont.

I have a home in Louisiana. It is my late parents home. No mortgage, no rent..etc. But, if I do that when I retire at 65, my Texas retirement will be reduced by about $900 since I will have stopped paying into the system. I will be paying into Louisiana--but, it takes 5 years to vest into the Louisiana Teacher Retirement. So, by the time I am vested it, it seems I won't have earned much in the way of retirement. I'm not sure if it would be enough to offset what I'd be getting reduced by in Texas by having left.

Also, in Louisiana, I am going to face the same exact type of political climates infiltrating into our schools. Also, currently the legislature there is reducing teacher pay stipends that have been used to increase teacher pay there. So, I'd definitely be getting a major pay reduction from what I currently make.

Those are all negatives. To throw another idea in- what if I move to Colorado ? I am certified there. The political climate in the way it affects me as a person is very different there. My target district pays much more than here. I'd have same normal age retirement at 65, but with PERA I would not have to vest in. I'd qualify for PERA from day one of work. If I pay in the whole time, I'd definitely make up the difference I'd lose with Texas plus, they have an additional state plan that I could qualify to pay into.

The negative- rent is super high there. The cost of living would hurt. There is the option to get a roommate OR rent a basement out from someone. Not an idea thought, but an option.

That said-- and yes I know I haven't gone into super detail- but given what I have shared ?

Would you just stay in Texas ?

Would you move to Louisiana?

OR would you scratch it all and head to Colorado and maybe have 2 systems to draw from plus a state sponsored system as well ? Knowing that you'd have to rent a basement

Signed-

Teacher in Texas.......

 

[Toast]

Have you considered moving to a state where teachers pay into social security as well as the teacher pension system?

 

[Joseph.Silas]

Yes. I’d consider that. Depends I guess on the difficulty to get certified there and that process plus maybe how far away from my family home it may be ?

 

[Gumby]

Yes. I’d consider that. Depends I guess on the difficulty to get certified there and that process plus maybe how far away from my family home it may be ?

The map at this site may help with deciding where you might like to go.

Not All Teacher Retirement is Created Equal

Many teachers are left out of the United States' Social Security System. What can we learn about state and school district variation?

nces.ed.gov

 

[Irishgirlyc58]

I'm not a teacher but I have a family full of them! Parent, sibling, offspring. I am also subject to WEP and worked in local government in California.
To answer your questions:
Would you stay in Texas-not if I didn't have to
Would I movie to LA-not unless I was really desperate.

I have a few questions-could you sell the house in LA to assist you in moving to Colorado?
Have you looked into the local school districts in CO to assess the local political climate?
I know in CA it differs greatly depending on location.

Have you gone into your Social Security account and looked at your WEP detailed calculator for an estimate of your future benefits? I had a mixture of years paid into social security and those subject to WEP. When I ran the detailed calculator for WEP on my account it actually came out to be much more that I had estimated.

Make sure you look at the detail of the CO PERS system. I've never heard of no vesting requirement in a government system - but I certainly haven't looked at each and every one!

Last-I would look at my budget and see if I could reasonably afford to move to CO. Would it be possible that if you are happier that you work past 65? My mother taught until she was 69.

13 years is a long time to be unhappy with your location.

 

[Teacher Terry]

As someone that spent 15 years in a system that didn’t pay into SS and the rest paying into SS getting WEPed is a big cut. I would want to be in a system that doesn’t pay into SS since that’s seems to be the best case for keeping more of your money.

I would sell the house in Louisiana and move to Colorado if they don’t pay into SS. I have lived in both Texas and Kansas and both are much too conservative for me. Plus I hated the weather. I liked the weather better in Wisconsin if that tells you anything).

 

[pacergal]

I agree with TT, selling the house in Louisiana and moving to Colorado seems like a better fit for what you are looking for.

 

[cathy63]

Are there other districts in CO aside from your target district that would have a lower COL and would be more tolerable than where you are, even if not as ideal as your first choice?

 

[Texas Proud]

Why do you think the Texas system is bad? It is well funded and good IMO. From memory I believe it is 2% or 2.2% of your avg salary X number of years.

IIRC, if you took money out of the system you can 'buy back' what you took out. That might be a good investment if possible. You would have to run the numbers to see, but the one person who asked me to do so it was a no brainer as the cost was so low compared to the increased pension.

Also, be aware that other locations have state taxes (Colorado) and possibly higher cost of living... if you are only moving for financial reasons make sure you factor in all costs...

 

[big-papa]

Not a teacher, so everything associated with that is outside of my personal experience.
I am, however, originally from Louisiana and most of my extended family is still there. Like you, I also live in TX, having just retired after a multi-decade career here. We're starting to think about where we want to live next because, like you, we also are less and less fond of this state. But I have to say that I'm also not fond of my home state, either (except for my relatives and, of course, the food). My wife is from MS and that's another "no" for places to live from her. And so we search.... We don't have a "short list" yet, but CO is on the list of places to explore a bit more deeply...

Cheers

 

[Mark1]

Are there other districts in CO aside from your target district that would have a lower COL and would be more tolerable than where you are, even if not as ideal as your first choice?

+1. Maybe Pueblo, CO? IMO, many of the lower COL locations in CO, will likely have the same school politics that you are experiencing now.

 

[Toast]

Why do you think the Texas system is bad? It is well funded and good IMO. From memory I believe it is 2% or 2.2% of your avg salary X number of years.

Although the system is well funded, the pensions are not cola’d.

 

[aja8888]

Although the system is well funded, the pensions are not cola’d.

Lots of pensions are not COLA'd. Nothing new.

 

[youbet]

Lots of pensions are not COLA'd. Nothing new.

Not new, but not good.

 

[Teacher Terry]

Nevada is always looking for teachers and it takes 5 years to vest into the state system. We don’t pay into SS. As a state employee we get 2.5% x number of years for our 3 highest years. We get colas. I didn’t retire as a teacher but we are in the same system. You would have to check to see if the teachers get the same as state employees.

 

[Texas Proud]

True, it is not COLAed.... but it seems that the states with COLAs are the ones with way underfunded pensions.