It should pay to stay on the job
An interesting aspect of public employee pension plans is that some encourage workers to retire in their early 50s, while others offer incentives to keep members on the job into their 60s.
For example, many public safety personnel, including about 100 Brea police officers, work under a “three percent at 50” plan—allowing retirement at 75 percent of final pay after 25 years or 90 percent after 30 years.
By contrast, normal retirement for public school teachers, counselors and administrators, including 1,272 Placentia-Yorba Linda school district certificated employees, is two percent at age 60 with final pay determined by averaging the last three years’ salary.
But the teachers’ plan offers inducements to stay on the job longer, including basing benefits on final-year pay after 25 years.
And, under an “age factor” formula, teachers who work until they’re 63 can retire at 2.4 percent of final pay per year worked, with a “career factor” allowing teachers with 30 or more years to top out at 2.4 percent at age 61 ½.
Set to expire for new retirees in 2010 is a “longevity bonus” of $200 per month after 30 years, $300 after 31 years and $400 after 32 years. Age 50 retirees earn 1.3 per cent of final pay—if they worked 30 years.
Of course, other factors affect retirement pay for government workers, including annual cost-of-living allowances, health insurance payments, unused sick pay credit and the per cent of pay employees are required to contribute toward future benefits.
With fewer pensions and more 401Ks in the private sector, public employees can expect greater scrutiny of their retirement plans. Maybe developing incentives to keep workers on the job longer would help preserve the benefits they expect to receive.
(Disclosure: I retired from teaching in 2003, gratified I chose a rewarding 36-year career and content with my monthly check.)
Substitute teachers don’t earn retirement benefits, but PYLUSD will increase their $100 daily pay to $102 in January and to $105 in January 2009. Orange County’s highest rate is $125 in the Anaheim Union High School District.
(Another disclosure: I work three weeks each May and will enjoy spending an extra $30 next year.)
A FINAL NOTE
Most residents know Yorba Linda celebrates its 40th anniversary next month. Cityhood was approved 1,963 to 638 Oct. 24, 1967, incorporation became official by a filing with California’s Secretary of State Oct. 30 and the City Council first met Nov. 2.
Another anniversary of note is the Yorba Linda Star’s 90th year of publication. March Butz’s “Yorba Linda: Its History” cites “about 1915” as the birth, but other evidence, including volume numbers on early issues, indicates the paper first published in 1917.
For example, many public safety personnel, including about 100 Brea police officers, work under a “three percent at 50” plan—allowing retirement at 75 percent of final pay after 25 years or 90 percent after 30 years.
By contrast, normal retirement for public school teachers, counselors and administrators, including 1,272 Placentia-Yorba Linda school district certificated employees, is two percent at age 60 with final pay determined by averaging the last three years’ salary.
But the teachers’ plan offers inducements to stay on the job longer, including basing benefits on final-year pay after 25 years.
And, under an “age factor” formula, teachers who work until they’re 63 can retire at 2.4 percent of final pay per year worked, with a “career factor” allowing teachers with 30 or more years to top out at 2.4 percent at age 61 ½.
Set to expire for new retirees in 2010 is a “longevity bonus” of $200 per month after 30 years, $300 after 31 years and $400 after 32 years. Age 50 retirees earn 1.3 per cent of final pay—if they worked 30 years.
Of course, other factors affect retirement pay for government workers, including annual cost-of-living allowances, health insurance payments, unused sick pay credit and the per cent of pay employees are required to contribute toward future benefits.
With fewer pensions and more 401Ks in the private sector, public employees can expect greater scrutiny of their retirement plans. Maybe developing incentives to keep workers on the job longer would help preserve the benefits they expect to receive.
(Disclosure: I retired from teaching in 2003, gratified I chose a rewarding 36-year career and content with my monthly check.)
Substitute teachers don’t earn retirement benefits, but PYLUSD will increase their $100 daily pay to $102 in January and to $105 in January 2009. Orange County’s highest rate is $125 in the Anaheim Union High School District.
(Another disclosure: I work three weeks each May and will enjoy spending an extra $30 next year.)
A FINAL NOTE
Most residents know Yorba Linda celebrates its 40th anniversary next month. Cityhood was approved 1,963 to 638 Oct. 24, 1967, incorporation became official by a filing with California’s Secretary of State Oct. 30 and the City Council first met Nov. 2.
Another anniversary of note is the Yorba Linda Star’s 90th year of publication. March Butz’s “Yorba Linda: Its History” cites “about 1915” as the birth, but other evidence, including volume numbers on early issues, indicates the paper first published in 1917.
posted by Jim Drummond at 12:00 AM
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