Sunday, April 10, 2011

Pension Costs and Fiance's Retirement

Come July 1st, I should probably expect to pay more of my salary to my pension. It looks like the goal of our council is to have the employees pay the full contribution level of 8%. Right now we pay 3% of it, so it seems like 1% to 2% increases over the next 4 years. Whether that will be offset by salary adjustments we just don’t know at this point… Raises and COLA have been frozen for 3 years across the board. (In may I’ll have my second review without compensation increase, so one more to go after that and hopefully salary adjustments will come back.)

Because of the increase, I won’t open that 457 account I had been planning to open if my fiance did have a job… instead, we will open on for South County boy once he’s eligible to participate. (6% employer match… we aren’t going to leave free money sitting on the table). But I think it takes 6 months to a year to be eligible so he'll open a Roth IRA instead.

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