Six-figure salary and a buyout create quite a pension [CT]

The New London Day ^ | January 12th, 2014 | Johanna Somers

[poinq]

If you compare 200K with a 4K/mth payout with SocSec. You need to consider that that SS now requires you are 66 years old to get the full benefit. And that it pays some number in the 30k range for someone who has paid in 6% for their whole life. If that’s 40 years and the final salary is $100k you likely paid $130k and you get $2500 a month, starting at 66.

[pieceofthepuzzle]

“His final average salary for pension calculation purposes was $361,293 annually.”

I don’t begrudge people their success, unless they are hypocrites. The media do not go after the salaries of academics, because they are a sacred cow. They have no problem, however, characterizing physicians as greedy and overpaid. That said, that salary is much more than the average physician’s salary (yes, I know some make significantly more, but the average is significantly less). I just find it hypocritical.

[Eska]

They take 9% in our state for teachers, not including ssn, but it's not taxed so a bonus. The wife gets a note every year, how much she has contributed, over 150k and she likes teaching and all, so she might teach 6-7 more years, got to get our kids outta school which is nuts, $$$$. She'll have over 200K plus can get ssn someday. My point is I honestly believe inflation or pension fraud will kill most pensions and I don't think the govt will bail them out.

One teacher I know gets $4400/month, taught 36 years, but 8 years was as Marine Captain that he bought in.

People are scared to retire nowadays, work till they die I guess; ain't so bad though.

[Blood of Tyrants]

The problem comes when the government relies on future income to fully fund pensions instead of paygo.

[poinq]

I am in Illinois. Its much different here. Your wife would neither get nor pay into SS. That works well for Illinois teachers because their pensions pay so much higher than SS. Average Illinois teacher makes $100K at retirement. That’s 100K. They can retire at 55 and make 75% of last three years pay plus medical. That income is state tax free as well. They also get a 401b, sometimes with a match. Each year of retirement they get a 3% raise. Its crushing Illinois. Their are more retirees than teachers now. And the retirees make far far more than the teachers do.

In my school district a teacher can tell the district that she is retiring in three years. They give her a 25% raise that year. And then she gets no other raise. But that puts here at an affective 100% retirement. Stealing? I think so.

Buy the way our school district gets hundreds of resumes per job opening. Most go to friends of the school’s staff.