Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I have a fed pension. Because of the retirement plan I’m on and years of service, once I retire in five years, I will get $85k a year for life. That’s just for starters. I will eventually get social security, and at some point I will start withdrawing from my TSP, which currently has 7 figures in it. And I keep my health insurance.

This is why people stick it out with the feds. Yes, you can invest yourself, but the value of my pension is something like an extra 2 million in a 401 k.

85k? Are you on a special pay grade?

Not that pp, but it sounds like they went to work for the federal government before the civil service pension plan was changed.

Someone on the old plan (CSRS) has their social security offset and didn't get government contributions to their TSP, making 7 figures harder, although certainly not impossible. Also, he would have to have a ton of years of service and, if he were on an elevated pay scale, the benefit should likely be more than $85k given the years of service, unless he was at a relatively low grade.

PP could also be under FERs special for LEO and other specific categories.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I have a fed pension. Because of the retirement plan I’m on and years of service, once I retire in five years, I will get $85k a year for life. That’s just for starters. I will eventually get social security, and at some point I will start withdrawing from my TSP, which currently has 7 figures in it. And I keep my health insurance.

This is why people stick it out with the feds. Yes, you can invest yourself, but the value of my pension is something like an extra 2 million in a 401 k.

85k? Are you on a special pay grade?

Not that pp, but it sounds like they went to work for the federal government before the civil service pension plan was changed.

Someone on the old plan (CSRS) has their social security offset and didn't get government contributions to their TSP, making 7 figures harder, although certainly not impossible. Also, he would have to have a ton of years of service and, if he were on an elevated pay scale, the benefit should likely be more than $85k given the years of service, unless he was at a relatively low grade.

I have Tier 1 pension as a teacher in VA. Lucky that I was the last year to part of that plan before Tier 2 began.

If I retire at 53 at the current highest teaching salary my monthly benefit with giving my husband 100% benefit if I die before him would be almost $4,000 a month. If I do the basic benefit without survivor option it would be $4,700 a month.

We have other retirement accounts and don't believe this will cover all of our expenses but it is very nice. I plan on retiring at 53 from VA but I think I will still work for at least a few more years at which point I am receiving retirement while also getting another salary.

I hope OP got her question answered

My fil retired from govt after 40 years under the old plan. He gets $150.k a year in retirement not iimcluding his own 401k investments.

States and municipalities have started to shift away from the defined benefit plan (pensions) for a number of reasons - to limit financial liability. People are living much much longer these days and pensions have become a financial burden. New employees are being offered hybrid and or watered down traditional pensions. I expect new pensions will fully disappear, even at state and municipalities within the next ten years or so. The reduced financial burden into the future will permit existing pensions to be fully funded. If you have a pension, and particularly a govt pension consider yourself extremely fortunate.

Anonymous wrote:Private employee pensions are guaranteed by the Fed Pension Benefit Corp (you can google exactly name) white all public (Fed,?state, local) pensions are backed by the taxpayers. While public pensions for future workers are also going the way of the dodo bird, .if you currently have any form of pension it is likely guaranteed by some entity. I have a state pension...never worry about it. They will raise taxes to uphold their obligation.

Are you in Illinois, California or New Jersey? If so, you should worry. And I wouldn't be so sure about a tax increase, either.

Anonymous wrote:Private employee pensions are guaranteed by the Fed Pension Benefit Corp (you can google exactly name) white all public (Fed,?state, local) pensions are backed by the taxpayers. While public pensions for future workers are also going the way of the dodo bird, .if you currently have any form of pension it is likely guaranteed by some entity. I have a state pension...never worry about it. They will raise taxes to uphold their obligation.

It's called the Pension Benefit Guaranty Corporation (PBGC), and if you believe there is a guarantee of full benefits in all circumstances, I have a bridge I'd like to sell you. In addition, the guarantee can, and should be changed by amending the law.

The government pension I'm entitled to has allowed me to max out my TSP in all equities. The pension is my bond diversification, so no need to diversify my TSP into bonds, which would lower my overall long-term TSP return.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP here. Thanks for the info. Nobody I know has or had I pension so why would I know (or care to know) about them? I asked my SIL and she has the defined contribution plan which is not guaranteed income for life. Doesn't sound like such a great deal. It sounds like any other 401k.

If it is not guaranteed income for life then she has a contribution plan.

'Defined' means income for life.

No. Defined contribution means the contributions are determined but the payout is uncertain. Defined benefit means the payouts are predetermined.

This.

Private employee pensions are guaranteed by the Fed Pension Benefit Corp (you can google exactly name) white all public (Fed,?state, local) pensions are backed by the taxpayers. While public pensions for future workers are also going the way of the dodo bird, .if you currently have any form of pension it is likely guaranteed by some entity. I have a state pension...never worry about it. They will raise taxes to uphold their obligation.

Anonymous wrote:

Anonymous wrote:OP here. Thanks for the info. Nobody I know has or had I pension so why would I know (or care to know) about them? I asked my SIL and she has the defined contribution plan which is not guaranteed income for life. Doesn't sound like such a great deal. It sounds like any other 401k.

If it is not guaranteed income for life then she has a contribution plan.

'Defined' means income for life.

No. Defined contribution means the contributions are determined but the payout is uncertain. Defined benefit means the payouts are predetermined.

Anonymous wrote:
Pensions are guaranteed income, but I don't trust them companies are getting rid of them

Don't rely on a company or government they will drop these as quickly as possible


Not even the federal government pension?

If the federal government drops its pensions, we will ALL have a lot more to worry about than our retirements.

Anonymous wrote:Pensions are guaranteed income, but I don't trust them companies are getting rid of them

Don't rely on a company or government they will drop these as quickly as possible

Not even the federal government pension?