General > General info Somewhat hot tub related
Career Advice
bosco0633:
what does 10 years get you in your force? I know that some places in the united states offers early retirement packages for officers in high stress areas. I need to do 30 years before I can go. Recently many are cashing out thier pension and rolling it over into retirement savings plans. This is making them just as much with the ability of leaving 5 years early.
If that is the case for me, then I get to retire at 47 instead of 52.
LtDan:
In Ohio, if we go at out with 25 years and at least 48 years old, you get 62% of your highest three years average. If you go 30 years, you get 72%. There is talk of making the 30 year mark mandatory to support the pension fund due to the health care costs associated with retiree's.
We are not vested until we get 15 years in.
Spiderman:
We have a "20 and out" plan regardless of age, but it does not include any health benefits when you retire. You multiply your years of service by 2.75%, so at 20 years you'd get 55% of your pay, 25 years 68.75% and so on. If you leave at 10, after you vest, you'd get 27.5% of your pay, but not until another 10 years from that point. If we leave anytime before we vest, you get all the money you've put in, which is approximately 8.3% of our wage.
30 years is an unbelievable long time for this profession. One of our Sgt's retired last year with 33+ years and he was still working the road. I have no idea how he did it.
bosco0633:
Wow, here in Canada we have great health care so not an issue. Our pension is 2% a year for our service. Our service matches our yearly contribution. So we work on a factor known as an 80 factor. Your years on and age must add up to 80 to be eliigble for retirement. So when you work 30 years you will gain a 60% pension. So most guys stay an extra 5 years to get 70% pension.
Now here comes the fun part. If you leave before the 80 factor kicks in, you lose 5% for each year you leave early. So when you want to leave with 25 years of service, you lose 25% off of your pension. So now you are only clearing a 35% pension. That hurts.
The canadian government holds your pension in limbo so to speak if you try and cash out after 50 years of age. They with hold 1/3 of your pension. So now a new event has started within our service. Guys are coming up to 50 years of age and retireing early. they cash out thier pension to prevent getting the 5% a year hit and rolling it into an RRSP. RRSP's are a private pension plan from the government that you can buy into for your retirement. These guys then live off of the intrest. A friend of mine just left with 28 years of service, and rolled his pension into an RRSP. His pension buy out was just shy of a million dollars, so the interest generated on that is enough for him to live.
Oh by the way, what is vested???
Spiderman:
--- Quote ---Oh by the way, what is vested???
--- End quote ---
It means you've put in enough time to qualify for retirement benefits, so for us, once you've worked at least 10 years, you're guaranteed to get something for retirement. If I leave at 10 years, I qualify to get 27.5% of my current wage, but not until 10 years from that point. If I work until 13 years, I would get 35.75% of my wage, but not until 7 years from that point, and so on and so on. If I work for 20 years, I will get 55% of my wage at that time and I would start getting my monthly pension checks immediately. Our Sgt who retired last year with 33 years of service is getting 90.75% of his wage when he retired, not too shabby. Like I said though, 30 years is crazy for this profession.
Navigation
[0] Message Index
[#] Next page
[*] Previous page
Go to full version