627 replies to this topic

[tessieca]

Banana, you can get health benefits if you retire at age 36 with 15 years of service. Of course, the district's contribution is capped at the same rate as the others, but that much is taken care of -- oh, only until you reach age 65 and then you're tossed to Medicare.

Akmommy, thanks for the perspective from a neighboring district teacher. Chicken Little aside, this district is too good to start losing people over a disagreement that will be resolved with an increase of at least 5.25%

By the way, several neighboring, competing districts are DECREASING benefits this year. While FCUSD has admittedly fallen behind, several others swung too far in the opposite direction and are now trying to correct before bankrupting.

Re new schools: if the kids come, they must be served. Eventually that requires new schools, new textbooks and even new teachers. No bonuses to administrators or board members for putting money into that. I'd say, yes, the district's priority is simply to serve/educate the children!

[banana]

Example: 5 years, so that's 10% or 0.1 times your final salary. Let's say as a new teacher at step 5 you are around 43K...I'm just throwing that out there, you will receive about 10% of that spaced out over the year.

So that's 43K*0.1 or $4,300/12 or $358.33 a month before taxes. Enjoy that retirement banana! There are longevity bonuses, but you have to teach anywhere from 25-40 years to hit some of those. Maybe, just maybe banana, with new technologies you'll live that long to enjoy it.

WOW! $358.33 a month before taxes!!! Just for fun, I decided to pull up my previous employer's retirement plan. Here's how it's done in the private sector.

I didn't use $43k, I just took the example that they provided it was close enough. Final pay at $46k, and yet, the monthly is $279.97 a month before taxes. Feel free to run the numbers at $43k.

Come and join the private sector, you'll get rich!

Final Average Pay (FAP) Formula

Your benefit under the Company Traditional (FAP) Formula is calculated using a final average pay (FAP) formula.

The FAP formula calculates your retirement benefit based on your final average pay and your credited service.

Here's how you'd calculate a retirement benefit using the FAP formula:

This example uses hypothetical numbers. Assume you have 5 years of credited service, and covered compensation is $46,344.00. Your final average pay is $50,000.00.

Example

1. Your final average pay up to covered compensation $46,344.00

2. Multiplied by 1.1%
x 1.1% Equals Part A

= $509.78

3. Your final average pay in excess of covered compensation $3,656.00
4. Multiplied by 1.7% x

Equals Part B

= 62.15

Part A plus Part B

= $571.93

5. Multiplied by your 5 years of credited service up to 35 years

x 5

Equals Part C = $2,859.65

6. Your final average pay $50,000.00
7. Multiplied by 0.5%
8. Multiplied by your years of credited service in excess of 35 years

x2

Equals Part D = $500.00

9. Part C $2,859.65
10. Plus Part D
+$500.00


Equals your annual benefit payment at normal retirement age = $3,359.65

You'll receive a benefit payment each month. To determine your monthly benefit payable at normal retirement age, divide your annual benefit by 12.

Monthly benefit = $279.97

The form of the monthly benefit illustrated above is a life annuity with a 5-year Term Certain, if you are single, or if you are married a life annuity with a 30% Contingent Survivor annuity payable to your spouse.

Depending on when you receive your benefit, your monthly benefit may be reduced because your benefit will be paid over a longer time. Your benefit will also be adjusted for the form of payment you choose.

[banana]

Just for some more fun.

I pulled up my file from my previous employer - I worked there for 5yrs in the early '90s. My final pay was higher than $43k and here is what I can expect.

Eligible for: As of:
Early Retirement Date 02-01-2026
Normal Retirement Date 02-01-2029

On NRD, 2029, I'm eligible for monthly retirement of $168.95! Woo-hoo!

If I elect early retirement, 2026, I would be eligible for reduced retirement of $142.76! Yeehaw!

Gee, I can't wait to tap the retirement that I earned and I only had to wait 34yrs!

Oh, if you don't believe any of this to be true, we can have a little wager. Lets say, $10k - we could use the money for our retirement. If you accept the wager, I'll invite you over (bring your checkbook) and I'll not only let you log on to my old employer's plan, but I'll be happy to produce the letter from my previous Fortune 500 employer (actually it's more like a Fortune 100, but who is counting).

Oh, I forgot to mention, those dollars were earned in a much higher cost of living area.

[banana]

In case you missed my last post banana, www.strs.org, enter your info and get that FAT retirement. I'll make more on my investments by a long shot compared to STRS...

I took you up on your offer and did just that. $430 a month! Woo-hoo! That's 2 1/2 times what my private sector employer will be paying me in retirement (both before taxes)!!!

Retirement Benefits Calculator

Here's the information you entered: You plan to retire in 2029
Your age at retirement will be 65 years, 0 months.
Your Years of Credited Service will be 5.000
Your Age Factor based on your birth date will be 0.02400
Your average monthly salary will be $ 3583

The unmodified monthly benefit shown below is calculated by multiplying your average salary by your years of credited service and the age factor at the time of your retirement.
Credited Service X Age Factor X Average Monthly Salary = Unmodified Monthly Benefit

YOUR ESTIMATED UNMODIFIED MONTHLY BENEFIT:
$ 430.00

This report is only an estimate and should not be your only source of information for retirement planning. You may select an option that provides a monthly benefit to a beneficiary who outlives you. CalSTRS encourages you to obtain additional information regarding your benefits by making a personal appointment with a CalSTRS telephone counselor by calling
1-800-228-5453 or with a local benefits counselor.

[banana]

Banana, you can get health benefits if you retire at age 36 with 15 years of service. Of course, the district's contribution is capped at the same rate as the others, but that much is taken care of -- oh, only until you reach age 65 and then you're tossed to Medicare.

Health Benefits? What health benefits? They get health benefits at retirement? Included? After only 15yrs?

Hold on a second, you're not seriously telling me that they can actually access that money at 36 right?

I mean, they have to wait to be eligible (65yrs old) before they can access those funds right?

So if I understand you right, a 21yr old college grad that decides to go teach can start pulling down retirement benefits at 36 WITH HEALTH BENEFITS UNTIL 65??????

They can't actually get retirement benefits at that age right? They have to wait until they're retirement eligible (65yrs old) don't they?

[TM70]

W

[banana]

No, you, amazingly, are wrong...I can't believe it...you can't pull your retirement until 55. The health benefit may extended, but as soon as you start pulling retirement it disappears. So, basically you start pulling that hefty retirement at 55 and you lose your medical or you don't pull your retirement until 65 and you keep the medical benefit. I mean, yes, after 15 years and truly I've never heard this before and I'm getting very close to that 15, you can do that. I'll check on that, no offense to other posters.

I guess you need those higher private sector salaries so you can save now and earn compound interest on your investments. Your retirement, for lack of a better word, sucks...

Come on now, it's in the back of your mind...it's creeping in...BECOME A TEACHER...

At 55? You can start drawing down on retirement at 55? Boy, I wish I had that option.

I can draw on that ex-employer retirement plan at 65 without any health benefits. Well I can actually draw $142.76 if I start early at 62.

Now you're getting the picture. That's right, maybe you'll make $5, 10, 15k more, but as all my relatives that teach or taught found out, you'll have to do several things with the higher pay.

1. Save it for retirement
2. Pay higher premiums for your own healthcare
3. Save it for the 1,000 deductible on your healthcare and to cover the remainder out of pocket as it only covers 80%
4. Since private sector jobs don't have a lot of time off - usually 2 weeks a year with a 3rd week added after 5yrs. You'll find yourself hiring caretakers for the kids on many ocassions just so that you can work.

Oh my teacher relatives all ran the numbers, over and over and over again. And the estimates ranged from one saying that you'd have to make ~$20k (more give or take $5k) in the private sector for a comparable job+benefits to as much as doubling of salary for it to be worth it.

The back of my mind? LOL More like the very front of my mind! I will definitely become a teacher. I just found out a way that I can retire from corporate America - Teach!

I always wondered why my employer has a transition program that prepares employees at my company for teaching. Now I know!

Well, would you care to take me up on the $10k bet? Ah what the heck, I'll give you a $9k discount. How about just one little $k?

I'm getting my class credits lined up.... photography class, a couple of technology classes, oh I love philosophy put me down for a couple of those, anthropology, psychology, literature, science, physics, oh astronomy, some language classes. Basically, all the stuff that I ever wanted to take that doesn't pay a dime in the real world. Now I can increase my pay by taking classes. Wow, I am so looking forward to retiring from corporate America now.

[tessieca]

Yes, if you were motivated to retire at 36 after working 15 years in the district, you would have health benefits paid (up to district's cap) up until age 65. The retirement thing is formula driven and is a CalSTRS deal. You acquire benefits (some who know how to do it right can make more than 100% of salary) but I don't think you can actually take it out at age 36.

Bottom line, FCUSD is a good place to work.

[TM70]

N

[Robert Giacometti]

Where to begin...I doubt that the superintendent or board gets a bonus. It's not about the money to them. Part of it is the new high school, new schools like Russell Ranch and the possibility of the annexation south of 50. All of that cost money. Money that can be taken in part from the general fund. The same fund that pays everyone in the district. Yes, there are bonds and construction funds to pay for the buildings, but then you have to pay for books, supplies, etc...General fund money doesn't have as many strings attached to it.

Also, I'm sorry, not to ruffle too many feathers, but the negotiations have come to a standstill. Basically, and this is the wording from the lead negotiator from the district, the superintendent has given them a set amount of 5.24% and that's it. No room to negotiate, which implies that his hands are tied. Even if he wanted to, he can't. Maybe ego on the part of the superintendent? I don't know?

TM70, I appreciate your attempts to respond to all these posts.

You stated above that, " its not about the money to them". I'm curious what do you think it is then, if its not about the money?

I thought you gave a good explanation on where the district would be spending the money they are NOT offering to the teachers. Those other areas seem important to me, so where would you propose cutting in those areas to come up with the additional amount for the raise?

[TM70]

G

[Robert Giacometti]

TM70, Just so you are clear I'm NOT taking sides on this issue, because I don't have the facts, this is why I keep asking questions trying to figure what is the right thing to do. Also, I'm not going to get involved in the discussions about who works harder or the benefits/negativities of anyone's job...the only job I can do anything about is my own...so that is the one I need to focus on.

If indeed the COLA from the State funds everything then I agree that the full amount of the COLA should be passed on to the teachers. Seems pretty logical. However if the COLA from the State funds only a percenatge of all the programs that teachers teach, then it would also seem logical that the teachers would have to share in that percentage and NOT get the full amount.

Its seems the impass is over how much these other programs truly cost. If I was a teacher I would be asking for a list of each program the District is claiming where the funding is going and most importantly a spreadsheet showing what the true costs are and how they are appropriated into the budget.

Its hard to quantify your comment about being "lame" without the numbers.

Lastly, your last sentence from above, What is that about?

[banana]

It is a great place to work, but when you start mandating and not negotiating salaries/benefits, you just make people mad. Maybe a little budge here or there, at least show us you're interested and then this wrangling can all end and we move on...

Same thing happened six years ago. They didn't take us seriously and we almost went on strike. Within a day...in fact the vote came in to strike and a deal was made. I sure as heck didn't want to go on strike, but I would have to show solidarity and unity with my fellow teachers. I hope this is not the same road.

That's interesting. My current employer decided it would no longer fund an employee pension. The message to the employees was simple, if you don't like that, leave.

If you're mad, and private sector pay is so much higher, why don't you leave? I keep asking that question and you've never really addressed it. I'm very curious why you don't leave.

[TM70]

C

[Doolin]

A point of clarification...

When comparing a public school teacher pension to private sector employees, you must remember that in the private sector the employer has a mandatory 6.2% contribution of the employee's gross pay to fund Social Security benefits for that employee. Most public school districts DO NOT contribute anything to Social Security on the teachers behalf. In effect, the majority of what a public school teacher will receive in a retirement pension from a school district is a substitute for what they would otherwise receive in Social Security benefits had the district participated in the Social Security program.

I point this out only for the sake of keeping this an apples to apples comparison.