Retirement Soon

[micro911]

I have been working at my agency for 28 years. Plan to retire next year at age 55 1/2.

I went to the retirement office today and gotten some numbers. They said I will retire with 75%..The number looked okay. I will probably take home about the same amount that I take home now.

Thing is, if I retire in March I retire with slightly less money than retiring in June. But, the benefit is, on April 1, there will be 1 or 2% increase for the cost of living adjustment. That will give me slightly more money than retiring in June. It was kind of funny when I was told that. I will have to call them in late January to confirm the actual number.

Anyways, Mr. Retired and Ron-Solo... What do you think? I also applied for a medical retirement.

Decisions and decisions... So many things to think about.. But good thing is.. I survived all this time, and a few more months to go.

[echoThreeOneSix]

congrats brother! enjoy your retirement, I'm sure it was well earned!

[55chevypost]

Not sure where you work brother, but I thought most dept were 3 at 50, so 28 yrs is 84% not 75%.

[P5Ret]

How much sick vacation and comp time do you have on the books that you won't get paid out on? I know when I went out it gave me 4 extra months that got me out under the then new contract. It may be worthwhile if you can, not to burn that all before your planed separation date to add in the additional time you need to bump you up a few bucks on the retirement.

[chris_m90731]

Has to be a great feeling.

[x-007]

I had planned on retiring after 30 years with my department, but there was a "rumor" of a new contract AND a new retirement plan was going to be approved, so I held off. Well, the rumor was true, and the new retirement plan, which was set up to attract applicants was put in place. I had to change over from the old retirement plan to the new, but that was a snap, and well worth it! I would have been 54 years old with 30 years on, so I stayed an extra year, until I was 55.

What sold me was when I spoke with one of our retirement counselors, who did some computer research. At 55, with 31 years of service, I would be taking in MORE money in retirement than I was making while working....about $57 more per month! Sure glad that I didn't pull the pin too soon!

[Ron-Solo]

LASD does not have 3% at 50. It is a sliding scale based on age and years of service. We are not part of CalPers. We are LACERA, Los Angeles County Retirement Association. It is fiscally sound. We all paid into it from day 1.

Micro, they say that anything above 75% is usually good to go. If they approve your disability retirement, it will be better. It took them two years to approve mine, but it made a big difference in how much I keep because of the lower tax liability.

A big thing is when you cash out your accrued sick, vacation, holiday, and saved overtime, if you use it to pay off debt you will be much better off. That's what I did. We operate on one VISA card and my AmEx card. We pay cash for most things.

You should be good. If the COLA is 2% in April, you would be better off to go at the end of March. That's what I did. I was planning on staying until August for my birthday and anniversary date but the difference was about $80 a month and it was costing more than that to go to work. Since I was medically unable to go back to work, I would have used all my benefit time just staying on six months more, so I went in March and cashed out my benefit time and paid off most of our debts.

I don't regret my decision one bit.

Ron

[AdiosKali]

Last week was my official last day after doing 28 years. I chose not to cash out a ton of vacation/ETO and used that time to move to Montana. Don't regret it one bit. Been up here since May. Miss some of the people and the excitement every now and then but it was time to go.

If you have PERS, jump on the website and crunch the numbers yourself. Look for the retirement calculator tab. I researched everything starting a few years ago and by the time it got close, the only person I really needed to consult was Mrs. AdiosKali.

[Gawernator]

Thanks for your service

[TrailerparkTrash]

LASD does not have 3% at 50. It is a sliding scale based on age and years of service. We are not part of CalPers. We are LACERA, Los Angeles County Retirement Association. It is fiscally sound. We all paid into it from day 1.

Micro, they say that anything above 75% is usually good to go....

Ron

All good points, but Ron you forgot to tell about the "good stuff..." Many 3%@50 agencies do not pay lifetime full medical benefits for the retiree and spouse. LACERA retires get FULL medical benefits after they retire. That's a HUGE difference between many CalPERS and LACERA retriees.

I have so many friends in CalPERS that always talk about getting "another job" when they retire at age 50, just to cover medical insurance. I've also had a buddy or two poke fun at the fact that us LACERA peeps maximize our retirements at age 55, thus working 5 years longer than the 3@50 crowd. Yet I always wonder why those guys are looking for "another" job when I'll be in Alaska fishing and never ever working again after I retire.

Then I point out that those of us that could, bought back "ARC" time and can retire earlier if we want. At 55, I'll have 32 + 3 years ARC. I bought back three years ARC time and it will give me 92.5% + full lifetime medical for me and the misses. Technically, I could go at 52 and still be ahead of the game.

Plus like you said Ron, LACERA has always been in the "black" with their books. In fact, one year, the State of California borrowed money from LACERA because they're "that good." The county has borrowed funding from LACERA once or twice as well since I've been on IIRC. Can't say that about CalPERS who's board frequently has mentioned the big "BK" and "bailout" about every other year, since I can remember. ?

I'm so glad we never got the 3@50% deal, because we would have kissed off our medical benefits. My brother and his wife are retired from a 3@50% agency and they pay $2,100. per month out of pocket for medical!!!! Screw that.

I'm sure there are a few 3@50 depts that pay 100% medical benefits for you AND your spouse, but I'm not sure which ones exactly.

***There's also a little known secret that after the age of 65, LACERA members DO NOT have to give up their county medical insurance for Medicare. LACERA doesn't advertise this fact, but it's true. At 65 they send you a form stating it's time to change over to Medicare, but a LACERA member can decline it for the much better county insurance plan they're already on. It's what my dad, aunt and uncle all did, without any problems. LACERA just likes to get old retirees off of their medical accounts, if possible. Don't be duped!

[WyattandDoc]

I've heard that 75-76% in the magic number for bringing home what you currently make since you won't be paying into retirement, union dues etc. etc.

Congrats and enjoy!!!!

[micro911]

I have Kaiser as my primary medical insurance. Now I have $10 copay along with other copays. The retirement office told me that my copay, if I stay with Kaiser when I retire, will be $5. I guess it is a good thing. :-)

At least, after 25 years of service, I don't have to pay medical insurance premium myself.

[micro911]

All good points, but Ron you forgot to tell about the "good stuff..." Many 3%@50 agencies do not pay lifetime full medical benefits for the retiree and spouse. LACERA retires get FULL medical benefits after they retire. That's a HUGE difference between many CalPERS and LACERA retriees.

I have so many friends in CalPERS that always talk about getting "another job" when they retire at age 50, just to cover medical insurance. I've also had a buddy or two poke fun at the fact that us LACERA peeps maximize our retirements at age 55, thus working 5 years longer than the 3@50 crowd. Yet I always wonder why those guys are looking for "another" job when I'll be in Alaska fishing and never ever working again after I retire.

Then I point out that those of us that could, bought back "ARC" time and can retire earlier if we want. At 55, I'll have 32 + 3 years ARC. I bought back three years ARC time and it will give me 92.5% + full lifetime medical for me and the misses. Technically, I could go at 52 and still be ahead of the game.

Plus like you said Ron, LACERA has always been in the "black" with their books. In fact, one year, the State of California borrowed money from LACERA because they're "that good." The county has borrowed funding from LACERA once or twice as well since I've been on IIRC. Can't say that about CalPERS who's board frequently has mentioned the big "BK" and "bailout" about every other year, since I can remember. ?

I'm so glad we never got the 3@50% deal, because we would have kissed off our medical benefits. My brother and his wife are retired from a 3@50% agency and they pay $2,100. per month out of pocket for medical!!!! Screw that.

I'm sure there are a few 3@50 depts that pay 100% medical benefits for you AND your spouse, but I'm not sure which ones exactly.

***There's also a little known secret that after the age of 65, LACERA members DO NOT have to give up their county medical insurance for Medicare. LACERA doesn't advertise this fact, but it's true. At 65 they send you a form stating it's time to change over to Medicare, but a LACERA member can decline it for the much better county insurance plan they're already on. It's what my dad, aunt and uncle all did, without any problems. LACERA just likes to get old retirees off of their medical accounts, if possible. Don't be duped!

I need to remember the bold part..

[Doheny]

No a LEO, but a retired FF.

I'm guessing you'd want to set your date so you get the COLA. That way future COLA's are compounded on that amount. Not taking the COLA would deprive you of the compounding on that 1 or 2% for the rest of your life.

At least that's how I based my decision.

[Ron-Solo]

Yep. TrailerParkTrash summed it up. My brother retired from a 3% at 50 County and went to work for Mono County just for the medical benefits.

Very satisfied with my retirement benefits.