Quote:
Originally Posted by CachacoF80
Quote:
Originally Posted by hatepotholez
Quote:
Originally Posted by TommyLights
You can always go in for 5 years, vest, and get out. Then you'll have a city pension when you hit 62.
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Interesting how does this work? Any 5 years? I thought minimum was 10. |
It depends where. Formulas nowadays are 2pct of your highest salary (averaged over a couple of years) multiplied by years of service. Depends on the city/state, 5y is the minimum. Before formulas were 2.5pct at age 55-57 and now 2pct at 62. Salaries (for
Retirement purposes) are also capped. I know people that worked for 30-40y and retired with 100pct of their salary (3-400k)! Now it's capped (again, depends where) at around 120-150. Even if you make one million, you are subject to the cap. So you have to work much longer AND have caps... |
Worth mentioning counterparty risk. Not all defined benefits plans are fully funded, many are 20-30pct
Underfunded. Is the expectation that a government will backstop an obligation? Yes. Is there a risk? Yes - Detroit, etc.
In summary, benefits are lower than before. On the health front they are still good. Many will cover 50pct of your health upon reaching 10y of service.