Teacher retirement

60 percent of final year's salary. So, about $65K for recent retirees. Plus, no state income tax on the pension. And full medical with no copay, no deductible.

Villanova alum wrote:

60 percent of final year's salary. So, about $65K for recent retirees. Plus, no state income tax on the pension. And full medical with no copay, no deductible.

Are you saying K - 12 teachers that are about to retire make around $108,000 or $65,000? If it's $108,000, I need to move!

What state?

Why so concerned with retirement?

I wasn't a teacher, but a few of my friends were, and retired within the past few years. This is the basic formula, as I understand. After 20 years, yes, they were making in the low $100s. Base salary plus extra for being department heads, some summer school work. So, better than $60,000 a year pension. New York State.

Worth noting is that this is a poor, rural upstate community. Half the kids qualify for free lunch program. Houses are inexpensive. But property taxes are high. Teachers and retired teachers are the prosperous ones around here.

Virginia's retirement depends on when you were hired because of a slight change in policy.

It's 1.7% of "average final" pay (based on either highest 3 or 5 years) multiplied by number of years teaching.

60% is pretty good. Teachers in Virginia have to go 35 years to hit that.

2% × years teaching. If you work 35 years you'll get 70% of the average of your last 3 years' salary. With this option if you die your beneficiaries get nothing , the pension dies with you. However if you choose other options and get less money your beneficiaries get your pension when you die. Teachers don't live large when they're young and working but do quite well retired.

Coach wrote:

2% × years teaching. If you work 35 years you'll get 70% of the average of your last 3 years' salary. With this option if you die your beneficiaries get nothing , the pension dies with you. However if you choose other options and get less money your beneficiaries get your pension when you die. Teachers don't live large when they're young and working but do quite well retired.

Unless they are self funded pensions these type of state funded pensions are whats killing state budgets and putting city's and states into virtual bankruptcy.

Retirement? Work 8-2:30, every holiday, snow day, sick day possible and three months off, sounds like our retirement outlook for those of us in the dreaded private sector.

And, oh, you need to commit a felony to get fired.

HandWringingLiberal wrote:

Retirement? Work 8-2:30, every holiday, snow day, sick day possible and three months off, sounds like our retirement outlook for those of us in the dreaded private sector.

And, oh, you need to commit a felony to get fired.

Someone's jealous :-)

Not so now wrote:

Coach wrote:

2% × years teaching. If you work 35 years you'll get 70% of the average of your last 3 years' salary. With this option if you die your beneficiaries get nothing , the pension dies with you. However if you choose other options and get less money your beneficiaries get your pension when you die. Teachers don't live large when they're young and working but do quite well retired.

Unless they are self funded pensions these type of state funded pensions are whats killing state budgets and putting city's and states into virtual bankruptcy.

No, what's killing state budgets is the idea you can continually cut taxes and somehow come out ahead.

Chandra B wrote:

Not so now wrote:

Unless they are self funded pensions these type of state funded pensions are whats killing state budgets and putting city's and states into virtual bankruptcy.

No, what's killing state budgets is the idea you can continually cut taxes and somehow come out ahead.

Every financial analysis done in every city across the country shows their greatest debt load to be from pensions. Teachers are a part of this old philosophy that can partially be put back on unions. It took years for it all to come to the surface , but its here. Adding more taxes to pay for bad decisions is not the way to fix it.

Not so now wrote:

Chandra B wrote:

No, what's killing state budgets is the idea you can continually cut taxes and somehow come out ahead.

Every financial analysis done in every city across the country shows their greatest debt load to be from pensions. Teachers are a part of this old philosophy that can partially be put back on unions. It took years for it all to come to the surface , but its here. Adding more taxes to pay for bad decisions is not the way to fix it.

That is well said. Public sector unions should not have the collective bargaining power that they have currently. The same people will likely still go into teaching, perform the same (or better) on the job, and be forced to invest for themselves or use an employer sponsored 401 K and invest/save responsibly like the rest of us. See example: state of Wisconsin.

For bad example: see State of Illinois.

Not so now wrote:

Chandra B wrote:

No, what's killing state budgets is the idea you can continually cut taxes and somehow come out ahead.

Every financial analysis done in every city across the country shows their greatest debt load to be from pensions. Teachers are a part of this old philosophy that can partially be put back on unions. It took years for it all to come to the surface , but its here. Adding more taxes to pay for bad decisions is not the way to fix it.

Also, I don't want to fund drops in your pension's investments by increasing my taxes. Please explain to me how that is equitable. I am all ears.

masldkfjsi wrote:

Not so now wrote:

Every financial analysis done in every city across the country shows their greatest debt load to be from pensions. Teachers are a part of this old philosophy that can partially be put back on unions. It took years for it all to come to the surface , but its here. Adding more taxes to pay for bad decisions is not the way to fix it.

Also, I don't want to fund drops in your pension's investments by increasing my taxes. Please explain to me how that is equitable. I am all ears.

It is equitable because if people like you were teaching our children, we'd be screwed in 25 to 30 years when they begin to become the leaders of our society and it all implodes from their incompetance.

Yes pensions as they have been set up put an undue burden on their respective municipalities, states etc... it has been changing and needs to change more, it is unsustainable. I went into this job knowing that I'd never be rich but would have a pension. I think new teachers must go into this profession with the knowledge that they might not get a pension.

Pretty sure OP started this knowing it would turn into a teacher bash.

masldkfjsi wrote:

See example: state of Wisconsin.

For bad example: see State of Illinois.

You mean no balls Walker who said he was taking on public sector pensions but somehow missed fire and police pensions? What a sackless d-bag.

Tycobb wrote:

Pretty sure OP started this knowing it would turn into a teacher bash.

Nope. I'm a Texas teacher with 30 years in the classroom. Our basic formula is years of service X 2.3 as a percentage of our best three years. For me, going at least five more years, it's 35 x 2.3 = .805 of about $62,000.

I was genuinely curious about other states.