After a work meeting today, It looks like I'll have to pay more money into my pension for the same benefits I'm currently receiving. It will now cost me double what I was already paying. While a 50% increase might sound HUGE, it's not much additional money. I currently pay 1% of my Salary; Come August, it will be 2% of my salary. Right now they take $13.43 out of every check. Come August 1st, they will take $26.86 a check. For some this will be a budget breaker (since a lot of people make wayyyyy more then I do), but for me, this is understandable, and I'm willing to pay the additional amount without any complaints.
Why? Because I'm glad to still be employed, and it still is better then paying into social security.
I hope my raise/merit increase from last physical year goes into effect by August 1st so I don't really notice the additional 1% loss in take home pay... but who knows.
It's ironic that after i elect to purchase some additional retirement credits ($33.06 a check for 2 years), the pension price "goes up."
With my mandatory contributions and my elected contributions, 4.46% of my pretax income is going to Retirement. Then I max out my Roth IRA ($5,000.00), and my employer puts 1% of my salary into my 401 account.
i too work in local city in the OC and our PERS ER contribution went up as well...I am appreciative i still have a job, but most of the long time employees don't seem to do so...
ReplyDeleteit's FISCAL year, not physical year.
ReplyDelete