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To: knarf
Do teachers collect their union pensions PLUS Social Security at retirement? What's their average yearly take??
4 posted on 04/22/2015 7:29:02 AM PDT by CivilWarBrewing
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To: CivilWarBrewing
Do teachers collect their union pensions PLUS Social Security at retirement?

Depends on when they started teaching. Starting in the 80's, new teachers had to join Social Security. The ones starting before that had the option to stay in the pension system.

If they stayed in the pension system, they don't get credit for Social Security contributions, unless they work another job that contributes to Social Security. But, the Government Pension Offset (GPO) reduces any Social Security benefit by 2/3rds of their pension benefit.

What's their average yearly take??

It depends on the state. In Texas, after full vesting, I think it's 64% of the average of their 5 highest years of earning. That's for single lifetime: joint lifetime reduces it somewhat, depending on the option chosen and the age of the joint beneficiary.

But, once the amount is calculated, it's a fixed amount. It doesn't increase unless the Texas Legislature enacts legislation to do so. They haven't done so for about 10 years.

12 posted on 04/22/2015 7:43:42 AM PDT by justlurking (tagline removed, as demanded by Admin Moderator)
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To: CivilWarBrewing
Do teachers collect their union pensions PLUS Social Security at retirement?

Public school teacher pensions have nothing to do with their unions. Almost every teacher pension plan is tied to their respective states, with the pension formula set by the state. It is not something that is negotiated by their union. But it certainly is a political thing.

As to the question itself, most teachers do contribute into both a pension plan and social security, and so do collect from both.

What's their average yearly take?

It varies widely, depending on the formula for the pension. The formulas take into account the teacher's salary and years of service. Then there is some multiplier. For example:

Yearly pension = final salary x number of years x 0.02

So a teacher making $50,000 a year would have a pension of $30,000 after 30 years. But that normally wouldn't be collectible until age 55 or 60.

Now here's the problem. These formulas are a bit too generous. And many folks take advantage of the "final salary" factor by doing all sorts of extra work in that final year. So that teacher in the above example could end up with a pension of $40,000.

I always felt that a pension plan (unless it's incredibly well-funded) should be paying out half-pay, at best.

16 posted on 04/22/2015 7:47:23 AM PDT by Leaning Right (Why am I holding this lantern? I am looking for the next Reagan.)
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To: CivilWarBrewing
Permit me to add something to my post #16.

Teacher pensions are different from the traditional company pensions. If you worked for a company, say General Electric, you got a pension without having to contribute anything towards it. The pension was just another negotiated company benefit. It would be fair to call that a union pension.

Teachers are required to contribute towards their pensions. In my neck of the woods, it's around 6% of their salary.

20 posted on 04/22/2015 7:55:10 AM PDT by Leaning Right (Why am I holding this lantern? I am looking for the next Reagan.)
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To: CivilWarBrewing

In Los Angeles they get an average of $75,000
The union has agreed to a 10.36% increase! Gee only 10%
50% of the students drop out. The others are barely literate.
The union gets angry when they have to pay anything for medical like the rest of us.
They get a nice fat pension with the rest of us paying it.

This is about Illinois.
http://www.heritage.org/research/commentary/2013/2/teacher-pensions-sweeter-than-they-would-like-you-to-think


34 posted on 04/22/2015 10:16:30 AM PDT by minnesota_bound
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