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Working What is your organization's retirement package?

SlaveToTheGrind

Cyburbian
Messages
1,458
Points
27
Earlier thread of paiste13 led me to post this discussion. I am a Tier 1 employee under the state retirement system - all municipalities in my state are part of the state system. Tier 1 can take full retirement at 30 years of service with public safety at 20 years. Tier 2 (since 2011?) are 35 years and 25 years. I will get 2% per year of my highest three years averaged out. Would love to hit the $100k for three years which would then mean $60K per year as retirement. Pension does adjust for inflation but typically 1% or less per year. I do have a 401k in which I and my employer contribute and a 457 (which no active contributions as this was carry over from a previous employer). What is your organizations retirement package.?
 
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Faust_Motel

Cyburbian
Messages
674
Points
29
Full retirement at 30 years, 1.7% per year of your high three years of service, maxes at 60%. Pension adjusts for inflation. I contribute to a 457, no employer contribution.
 

Hink

OH....IO
Staff member
Moderator
Messages
15,934
Points
53
OPERS -
I am in group C, which is not as good as those who were retiring in B or A.
Full retirement at 32 years or at age 55 whichever comes last. We pay 10% of our salary into it. Employer covers 14% additional.
72% of your 5 highest years average salary.

If I wait until 62 that moves up to 89%.
If I wait until 65 that moves up to 97%.
If I wait until 67 that moves up to 100%.

Healthcare is part of the retirement package, although it is being gutted and likely won't be great by the time I get to retire in 18 years.

Ohio Deferred Compensation (457) plan through my employer, but they provide no contribution.
 

mendelman

Unfrozen Caveman Planner
Staff member
Moderator
Messages
14,027
Points
58
OPERS -
I am in group C, which is not as good as those who were retiring in B or A.
Full retirement at 32 years or at age 55 whichever comes last. We pay 10% of our salary into it. Employer covers 14% additional.
72% of your 5 highest years average salary.

If I wait until 62 that moves up to 89%.
If I wait until 65 that moves up to 97%.
If I wait until 67 that moves up to 100%.

Healthcare is part of the retirement package, although it is being gutted and likely won't be great by the time I get to retire in 18 years.
Same for me, but I've got ~5 years less in the system, but I was 8 months shy of vesting in IL's IMRF (the OPERS equivalent in IL).
 

JNA

Cyburbian Plus
Messages
25,874
Points
62
For Indiana PERF - you are vested at 10 years.
Like SlaveToTheGrind & hink posted Indiana as a schedule based on age & service time.

I will have 28 years of service in November.

The 457 plan is voluntary participation & no match.

The Man will pay out up to 60 days of sick bank - 3 months salary - sweet.
 

HomerJ

Cyburbian
Messages
1,102
Points
17
401a plan with employer matching at 6% and 457 plan with no match. I also barely met the minimum 5 years of service threshold to qualify for a defined benefit pension with my previous employer, so my retirement income will be coming from a few different places.
 

bureaucrat#3

Member
Messages
64
Points
6
Alabama Retirement System

Vested at 10 years

Tier 1 - Retirement after 25 years or age 60 and 10 years
Employee contributes 7.5 %, Employer 8.5%
2.0125% per year of service
Tier 2 - Retirement at age 62 with at least 10 years service
Employee contributes 6.0%, Employers 7%
1.65% per year of service

COLA's are not guaranteed and health insurance is available, but you have to pay both employee and employer portions.

Tier 2 started in 2010, I think. It rode a huge slash in budgets and a tea party push to force government employees to have bad retirement plans like everyone else. Last year the legislature gave municipalities the ability to transition Tier 2 employees to Tier 1 by paying extra. Most of the cities that could afford it have done so because they realized it was a huge recruiting tool. I was already Tier 1 (9 years to 25, but at least 20 more working years), but its great for some of the newer employees.
 

kjel

Super Moderator
Staff member
Moderator
Messages
12,527
Points
42
Pension, Tier 5 (thanks Christie). I have to work until 65 to get the full benefit which should be about $2,500/month assuming no salary raise ever (we receive COLAs). You're vested after 10 years of service so even if you leave, you can collect a small benefit when you turn 65.
 

MD Planner

Cyburbian
Messages
2,565
Points
39
I am vested in two systems already so I'll see some bucks from there. I have to be here 8 years to be vested in South Carolina which is my plan. I contribute 9% of my salary. I'm a big believer in the 457 as well and that gets matched at 6%. I also have an annuity with the stagehand union so I'll see a little from that which is nice. Part of every contract is that the employer pays a percentage into the annuity. I kind of like knowing that all these musical artists will be sending me a few dollars every month!

I'll probably work until I'm 60 but depending on the market I might check out at 58. Time will tell as they say.
 

DVD

Cyburbian
Messages
15,021
Points
52
I've got 6 years in the AZ state system and 6 years in the KS state system. My current city has it's own system. All the standard pension stuff. I should get about $1,600 from the two state systems. We'll see what I get from this job. My plan is to go back to an AZ state system job for the last 3 years before I retire to bump up the number a little.
 

WSU MUP Student

Cyburbian
Messages
10,649
Points
47
Matching 401(A) contributions. What are these 'retirement packages' you speak of?

^ This.

We also have a 457 and an HSA but except for a few people who have been on the staff for about 20+ years and are grandfathered in to the old system, there is no defined benefit pension or health care for "retirees".

I put retirees into quotes because what's the point of sticking around until "retirement" if there is no added benefit? We are fully vested in our 401a and 457 after 7 or 8 years so if I quit after 8 years and 1 day or 30 years, I get no added benefit (assuming that if I quite after 8 years, I rolled those accounts over to a new employer and continued making contributions).

Over the past few years, there has been a real problem with employee retention at my place of work, especially among the professional positions (public health nurses, engineers, planners (to a lesser degree), attorneys, programmers, etc.) where people would immediately leave after they become fully vested. Many would jump ship and head to the state or one of the other local communities that still have pension systems. After enough exit interviews and comments from remaining employees, the administration finally began to get the hint that the lack of any sort of defined benefit or health care plan was a major contributor to the turnover and there was some scuttlebutt that they may try to reinstate at least a health care plan for retirees. Who knows if those talks are still ongoing in this pandemic era when turnover has come to a screeching halt.

FWIW, given the choice, I'd generally prefer defined benefits over defined contributions but that's not as big of a deal to me as the lack of health care for retirees from my employer.
 

Planit

Cyburbian
Messages
13,280
Points
54
State Retirement @ 30 years (I'm currently @ 32 years of service). City & I contribute, plus I have about a year of sick leave of which I'll get 75%(?) of anything left. Retirement funds are based on the average of the 4 consecutive highest year earnings.

State 401K. No city contribution, but I keep upping mine.

I have a couple other small accounts (401k, IRA and such) as additional pieces of the puzzle. Started a little later than I should with more aggressive contributions, but growing steady now. The 529 will be used in the next couple years for The Girl.

Really the thing I worry about the most in 'retirement' is healthcare insurance.
 

arcplans

As Featured in "High Times"
Messages
6,657
Points
32
Calpers retirement classic 2.5@55, plus left over 401K and social security. Soooo.. all things considered if I stayed at my current position (which i wont) I would retire at 65 with a monthly payout of $7581. Kinda nuts when you think about it?
 

glutton

Cyburbian
Messages
481
Points
12
State public retirement system with a great match once you vest (5 years! ahh so long) + 401K option (but no matching). It's kind of best of both worlds, minus the fact that vesting takes so long. Benefits older employees much more than younger ones, but that's government.

Other aspects -
FSA is an option if you put only your own money in, HSA is not unfortunately. We get full health benefits paid for, which is amazing and unheard of, but that does reflect in our lower salaries compared to other peer agencies in town.
 
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