Value of teacher pension

[Anonymous]

I’m 48 single F trying ti catch up on 401k and taxable savings. Currently on Cobra after the job loss. I live on rental income which covers my living expenses but not able to save much. Ideally, I want to create a $2m 401k as an extra cushion or need to earn a pension somewhere.

I read about teachers pensions and health benefits but is it worth it from financial standpoint ? I do have a grad degree and could get a job in my sector for $120k or try teaching path for the pension and health benefits.

What could be my starting salary as a teacher and when my pension would become vested ? Is it really worth it vs just seeking a job in my own sector if I plan to work for 7 more years max ?

Thanks all for your suggestions !

[Anonymous]

If you teach in Baltimore City, you are tenured on the first day of your fourth year. You’re vested after ten years in the MD state pension system.

I believe starting teachers make $60k now. I’m in my 13th year and I make $108,000. Good benefits. The main issue is can you survive Baltimore City schools (or any public school these days)? It isn’t a job for the weak. If you’re super stubborn and persistent, it may be a good choice. Most new teachers don’t make it past a year or two. Shadow in the grade level/content you’re interested in before committing . GL!

[Anonymous]

I don’t think it will be worth it. The pension after 7 years will not be that large.

[Anonymous]

Let’s say you work 17 years in Maryland as a teacher and retire at age 65.

I’ll assume you are making $100k in your last five years. The Maryland teacher pension calculator says you can collect $2125 a month in pension starting at age 65.

https://marylandeducators.org/career-resources/pensions/pension-calculator/


That pension will likely not be taxed by Maryland at all since it is below the ~$30k pension exclusion. If you stay on the school insurance that might mean $300-$400 a month subtracted from your monthly pension.

I am not sure it is worth the risk that you might leave before 10 years. That’s quite a commitment to what can be a tough job as a beginner.

[Anonymous]

In Arlington Public Schools they have seriously cut back on benefits and when you qualify. I believe you can see how long you need to work to be vested on the web site. Honestly I retired after 30+ years and couldn't handle the kids, parents or the technology which ran everything.

[Anonymous]

Anonymous wrote:If you teach in Baltimore City, you are tenured on the first day of your fourth year. You’re vested after ten years in the MD state pension system.

I believe starting teachers make $60k now. I’m in my 13th year and I make $108,000. Good benefits. The main issue is can you survive Baltimore City schools (or any public school these days)? It isn’t a job for the weak. If you’re super stubborn and persistent, it may be a good choice. Most new teachers don’t make it past a year or two. Shadow in the grade level/content you’re interested in before committing . GL!

This. I taught math for 5 years in the Bronx NYC before quitting to work as an actuary. No regrets. I loved the kids but I hated teaching math. Math teachers unfortunately can be very condescending and get frustrated if others fail to understand what they perceive as being obvious. I was one of of those teachers. And that's not good so I had to quit.

I find it strange that we recommend teaching to every unemployed soul as if teaching is easy. It's f**g hard and most can't do it. People should try to remain in their industry relocate etc before venturing into teaching.

[Anonymous]

Anonymous wrote:Let’s say you work 17 years in Maryland as a teacher and retire at age 65.

I’ll assume you are making $100k in your last five years. The Maryland teacher pension calculator says you can collect $2125 a month in pension starting at age 65.

https://marylandeducators.org/career-resources/pensions/pension-calculator/


That pension will likely not be taxed by Maryland at all since it is below the ~$30k pension exclusion. If you stay on the school insurance that might mean $300-$400 a month subtracted from your monthly pension.

I am not sure it is worth the risk that you might leave before 10 years. That’s quite a commitment to what can be a tough job as a beginner.

When would I be eligible to retain the insurance (the earliest I can quit and yet have the employer insurance )?

[Anonymous]

Anonymous wrote:I’m 48 single F trying ti catch up on 401k and taxable savings. Currently on Cobra after the job loss. I live on rental income which covers my living expenses but not able to save much. Ideally, I want to create a $2m 401k as an extra cushion or need to earn a pension somewhere.

I read about teachers pensions and health benefits but is it worth it from financial standpoint ? I do have a grad degree and could get a job in my sector for $120k or try teaching path for the pension and health benefits.

What could be my starting salary as a teacher and when my pension would become vested ? Is it really worth it vs just seeking a job in my own sector if I plan to work for 7 more years max ?

Thanks all for your suggestions !

No, it isn’t worth it, especially if you only plan to work for another 7 years.

Starting salary, depending on district, may be around $65K. In my district, you’re vested at 8 years. And typically you can expect to work A LOT more than 40 hours a week, especially at the start of our career. So from a cost/benefit analysis, I say don’t do it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Let’s say you work 17 years in Maryland as a teacher and retire at age 65.

I’ll assume you are making $100k in your last five years. The Maryland teacher pension calculator says you can collect $2125 a month in pension starting at age 65.

https://marylandeducators.org/career-resources/pensions/pension-calculator/


That pension will likely not be taxed by Maryland at all since it is below the ~$30k pension exclusion. If you stay on the school insurance that might mean $300-$400 a month subtracted from your monthly pension.

I am not sure it is worth the risk that you might leave before 10 years. That’s quite a commitment to what can be a tough job as a beginner.

When would I be eligible to retain the insurance (the earliest I can quit and yet have the employer insurance )?

In MD for anyone hired after July 2011 it is age plus years of service equals 90 OR age 65. So you would not be eligible for retirement benefits until age 65. I work for MCPS and you can keep MCPS health care (along with Medicare), but you do have to pay for it when I retire. For me it is like to be $300-400 per adults. When you hit age 65 you have sign up for Medicare as well.

[Anonymous]

Not a chance it's worth it. You'll make twice as much in your sector. In FCPS you would be hired at step 1 on the masters scale, making $68k

https://www.fcps.edu/sites/default/files/media/pdf/fy26-teacher-195-day.pdf

IF you got a step RAISE each year (you won't, we have historically gotten them around 2/3 of the years), you'd end making $85k. Your pension would be based on the average of your last 5 years working, so around $79k. You aren't eligible to collect that pension until age + years of service = 90, so if you are only working 7 years you wouldn't be able to collect it until 83 years old, and it would be $460/month.

The pension is valuable if you start by 25 and work for 35 years. Otherwise is makes way more sense to go into industry.

[Anonymous]

Anonymous wrote:Not a chance it's worth it. You'll make twice as much in your sector. In FCPS you would be hired at step 1 on the masters scale, making $68k

https://www.fcps.edu/sites/default/files/media/pdf/fy26-teacher-195-day.pdf

IF you got a step RAISE each year (you won't, we have historically gotten them around 2/3 of the years), you'd end making $85k. Your pension would be based on the average of your last 5 years working, so around $79k. You aren't eligible to collect that pension until age + years of service = 90, so if you are only working 7 years you wouldn't be able to collect it until 83 years old, and it would be $460/month.

The pension is valuable if you start by 25 and work for 35 years. Otherwise is makes way more sense to go into industry.

I lied, you can collect it at age 65...I forgot (I'll get to age + service = 90 first). It would still only be ~$450/month though.

[Anonymous]

Thanks all !

[Anonymous]

Anonymous wrote:
When would I be eligible to retain the insurance (the earliest I can quit and yet have the employer insurance )?

In my school district, PGCPS, you need to have worked for 12 continuous years to qualify for employer health insurance in retirement. The school district continues to pay 80% of your premium in retirement.

MCPS I think it is 10 continuous years, but I believe the district will only pay 39% of your premium with just ten years of employment. At 15 years they will pay 49% of the premium.

[Anonymous]

Anonymous wrote:

I read about teachers pensions and health benefits but is it worth it from financial standpoint ? I do have a grad degree and could get a job in my sector for $120k or try teaching path for the pension and health benefits.

What could be my starting salary as a teacher and when my pension would become vested ? Is it really worth it vs just seeking a job in my own sector if I plan to work for 7 more years max ?

Starting salary for a teacher is around $60,000, a little more with a MA. If you can get a job for $120,000 now, and feel you could live on a $60K salary, I'd just take the higher paying job and save 50% of your income. There's nothing terrible attractive about teacher pensions nowadays.

[Anonymous]

Will people still sign up to be teachers if pensions are gone? Just curious