Friday, September 25, 2009

Pension cap...

I just found out that there is a cap on the amount of service credit one can earn when it comes to the CALpers pension system. That cap is 38 years.

I have 4.05 years as of July 1st 2009, and if I work till I’m 55 I’ll have earned another 32 years for a total of 36.05… I’m also currently buying some time from before I was officially enrolled in CalPERS (service prior to membership… its about 0.8 of a year…) which means I can only purchase 1.15 years… and since they only sell them in one year increments, I can only purchase one year. I was originally planning on purchasing 5 years of service credit (the max since you can only elect to purchase one time)… but apparently I’ll only be able to buy one year of credit.

Which is A LOT cheaper… and since any extra years I put in won’t be calculated after 55, I won’t be working a day after 55… that’s for sure.

I also found out that any remaining vacation time I have is paid out when I retire or separate from my employer… Every year I seem to learn more and more about the benefit system. Apparently I have an employer paid life insurance policy that equals 2 times my annual salary too.

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