I am in CA and am wondering about gov workers pension plans. If I were to become a county worker, I would stop paying into Social Security and get onto the gov pension plan.
Do the workers continue paying onto their own account? As in SS that employers and employees pay into?? Or is there no deduction from their wages and it is all paid by the County??
I see LA Mayor Vigaro is trying to change the LAPD and LAFD pension plans.
Don't those workers pay their own accounts now??
Just curious how the pensions are funded and if all the noise is justified or not.
I pay into a public safety pension plan and also into a voluntary deferred comp pension plan. I do not pay into SS but I do pay a health insurance tax for a service I am not elligible to receive (not by choice). Pension payments are based on years of service and age at time of retirement. Your highest salary is counted (based on last 3 years). Overtime is not factored into this, it is just base salary for retirement pension purposes. The older you are with more years of service, the higher percentage of your base pay that you will receive as a pension payment. Money that is contributed by employees into the fund is invested in portfolios for interest purposes. Some plans are well funded because they were conservatively invested while others are struggling because they were invested in risky funds for higher interest returns and the stock market collapse killed them. The plan I am in was so well funded that the County came in a few years ago and said there was to much money in there. They took 100 million out and do not have to pay it back. They have emminent domain control over the funds and can take money out if they feel it is over funded.
This is just an example of one pension plan. There are different types of plans in Cali and there are differences in the pension contributions and pay outs depending on if public safety or civilian employee.
My sister work for a water dept. and is in CALPERS. Sometime ago she took some of her 401k money she had saved and used it to BUY more time with CALPERS. So she will get to retire at 55 with 95% salary. She will not get any SS and obviously now has less in 401k. so they took her money and basicly reinvested it for her to get more time and cash with CALPERS.