If you quit public school teaching in good standing after 20 years you get $55,000/year pension right? (career, alternatives)
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That’s really not a bad deal at all. So then you can pursue another career and say you earn $50K in that new field you love doing, combined with defined benefit pension you earn 6 figures plus if your spouse is like an MBA or financial analyst you have $250K safety net a year
So why don’t teachers consider this option more? It’s usually 10 years I think a vested defined benefit pension. In NYC I think it’s $60K a year for life right ?
There are MINIMUM AGE REQUIREMENTS in order to draw a full pension (e.g., 55 with 30 years or 62 with 20 years). If you pull the plug prior before the minimum age requirement, your pension is going to suffer a huge hit due to the age factor. $55,000? I think it would be more like $10,000 if you pulled the plug with just 20 years at say age 45.
That’s really not a bad deal at all. So then you can pursue another career and say you earn $50K in that new field you love doing, combined with defined benefit pension you earn 6 figures plus if your spouse is like an MBA or financial analyst you have $250K safety net a year
So why don’t teachers consider this option more? It’s usually 10 years I think a vested defined benefit pension. In NYC I think it’s $60K a year for life right ?
It helps if you know what you're talking about before postulating a theory. Review the following numbers and then come back:
And every state (sometimes it's by county or district) has a different retirement pension plan, with different provisions. Unless you can identify the exact retirement plan you're talking about, it's just a bunch of hot air.
The big question for retirees is not just what the pension is, BUT can they collect Social Security AND their pension in the state that they're in? Then throw in this little nugget. Does my state tax my pension and/or my social security payments? Here's one more variable. What about the costs of health insurance for the retired teacher? The type of coverage made available changes dramatically from state to state as well.
It's untruthful to make an a blanket statement like the OP did. MASSIVE differences between what a retired teacher can get by simply crossing state lines.
That’s really not a bad deal at all. So then you can pursue another career and say you earn $50K in that new field you love doing, combined with defined benefit pension you earn 6 figures plus if your spouse is like an MBA or financial analyst you have $250K safety net a year
So why don’t teachers consider this option more? It’s usually 10 years I think a vested defined benefit pension. In NYC I think it’s $60K a year for life right ?
Uh, no. That's not how it works. It's different for every district, so I suggest that you check in with your specific HR person to determine retirement eligibility and benefits.
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Originally Posted by rabbit33
And every state (sometimes it's by county or district) has a different retirement pension plan, with different provisions. Unless you can identify the exact retirement plan you're talking about, it's just a bunch of hot air.
That's right, and I doubt any pay that much. In our state the teacher's pension plan offers two alternatives, based on years of service, salary and salary at retirement.
One example: for a teacher working 30 years retiring at age 55, making $55,000 the last year, the yearly retirement pension would be $16,500.
In the other, if you worked for 35 years, age 65, and earned a final average salary of $60,000, your yearly retirement pension would be $42,000.
As I was approaching my 20th year of teaching, I had a few people ask me if I was going to do the "20 and done" route. I never quite understood where they were coming from. At 20 years of service I would have only been 42 years old and not eligible for retirement. Next year will be my 30th year, after which I will eligible for unreduced state retirement (VRS here in Virginia). I believe the VRS provides ~50% of your highest three years' salary.
I am one who falls under an older plan that has a "rule of 80", (years of service and age have to equal at least 80). I believe new teachers now have a "rule of 90". So a 22 year old who started this year will be eligible for unreduced retirement after 34 years of service.
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