Coronavirus Coronavirus: In-Iowa General Discussion (Not Limited)

[Urbandale2013]

Maybe just a bad headline but I don’t think the headline here is fair. Even under stricter orders meat processing facilities and nursing homes are going to be open. We all still need food and seniors still need care. If we had all the resources we needed it would be one thing but we don’t have enough PPE.

 

[CascadeClone]

The Ipers early retirement (pre 65) changed in 2012 area. They basically doubled the pre 65 retirement penalty for the years after that versus before that.

Any defined benefit pension that allows you to retire before 65 is a gift of time, not money. That's how I would look at it, anyway. You could still work some, maybe your "dream job" even if it otherwise wouldn't pay the bills.

You aren't going to live a life of decadent pleasure on $25k per year. But if you were a teacher making $30-40k annual, you probably weren't going to do that anyway lol.

 

[BCClone]

Boy that seems low if she hits her rule of 88, years of service + age = 88. You are penalized for retiring before you hit your rule of 88. So say you only taught 25 years but want to retire at 55, the earliest you can under IPERS, then she would pay a penalty for those years that she was under 30 years. You can log on to the IPERS website and it will show you how much penalty it is for each year. I think it was around 6.0% per year under 30.
They also have a rule of 20 + 62 = a full pension.
There should be a total buyout listed on the top of the 3rd page I think it was.

My statement said if had retired in May, I would be at 89, and would receive right at $2890 a month,.If I chose option one. I have 31 years in and I am 58. The most I ever made teaching was right at 60K for a year.

https://www.ipers.org/about-us/ipers-law-legislative-information/ipers-pension-reform

That is what the paperwork says for when she retires (which she will be at 89). With the 3.5% increases that would assume she would have an average of about 72-73k for salary to be factored in. They have really busted the balls of those who are younger and younger. Those who are 30 will need to work to 62 to get what my wife would at 55-56 area most likely, if not more.

They always mention option 2 in their paperwork. I can live on a whole lot less than my wife, so I don't know what option 1 would be. She would turn 56 at the end of the school year with 33.75 years in. At the beginning of the year she would be an 87.75

 

[Rabbuk]

Any defined benefit pension that allows you to retire before 65 is a gift of time, not money. That's how I would look at it, anyway. You could still work some, maybe your "dream job" even if it otherwise wouldn't pay the bills.

You aren't going to live a life of decadent pleasure on $25k per year. But if you were a teacher making $30-40k annual, you probably weren't going to do that anyway lol.

if youre making 30-40k annually as a teacher something has gone seriously wrong with your life. I think crapids starts in the low 40s

 

[BCClone]

Any defined benefit pension that allows you to retire before 65 is a gift of time, not money. That's how I would look at it, anyway. You could still work some, maybe your "dream job" even if it otherwise wouldn't pay the bills.

You aren't going to live a life of decadent pleasure on $25k per year. But if you were a teacher making $30-40k annual, you probably weren't going to do that anyway lol.

I know, not complaining, just stating what it is. Like I had said in a prior discussion to this, I did not know that you could opt out of IPERS when my wife retired and had we married in college so I could have helped her decide. She was already in it when we married. ALL my financial data says it would have been best to forfeit the 1.60 employer factor and invest it herself.

 

[madguy30]

if youre making 30-40k annually as a teacher something has gone seriously wrong with your life. I think crapids starts in the low 40s

Bigger cities generally pay more.

When I interviewed for some rural schools about 15 years ago starting salary was $21,000 ish iirc.

 

[BCClone]

Bigger cities generally pay more.

When I interviewed for some rural schools about 15 years ago starting salary was $21,000 ish iirc.

My wife made more than that when were married in 97 and we are rural. You must have looked at one small and broke school.

 

[madguy30]

My wife made more than that when were married in 97 and we are rural. You must have looked at one small and broke school.

Yeah and starting salary just out of school is pretty low on the ladder or was there.

I'm in line to get a nice bump next year (or was) where I am but that's after getting a Master's and doing a bunch of course/credit work.

Here's to hoping the career continues next year and after. Districts are like corporations: great at adding more people at the top to make all the decisions and make it look great, but bad at knowing what's actually needed and where.

 

[SEIOWA CLONE]

That is what the paperwork says for when she retires (which she will be at 89). With the 3.5% increases that would assume she would have an average of about 72-73k for salary to be factored in. They have really busted the balls of those who are younger and younger. Those who are 30 will need to work to 62 to get what my wife would at 55-56 area most likely, if not more.

They always mention option 2 in their paperwork. I can live on a whole lot less than my wife, so I don't know what option 1 would be. She would turn 56 at the end of the school year with 33.75 years in. At the beginning of the year she would be an 87.75

Has your wife ever called IPERS and had them figure it? Because she is two years younger that me, made a hell of lot more money that I ever have, and according to what you are saying will bringing home about $900 a month less. By chance what year did you wife start teaching? I started in 1985 as a reference point.
I have had them figure mine a couple time and always get the same numbers, she can also do it online and make an account.

Doing simple math, her 5 year highest average is $70,000 X .60% puts her at $42,000 a year. Take $42,000 divide by 12 months and she should get $3,500 a month before taxes. That is what option 1 should be at least, now the other options will be a little less but not much.
Mine shows me 1 dollar less per month of Option 2.

 

[SEIOWA CLONE]

The Ipers early retirement (pre 65) changed in 2012 area. They basically doubled the pre 65 retirement penalty for the years after that versus before that.

What the state did was move the penalty from 3.5% to 6.0% per year for those that do not have a full 30 years. If you have 30 years in, are 55 or older, this change would have NO effect on you, as long as your age and years taught add up to 88.
It hurts those that do not get 30 years in and decide to retire, such as someone that got into teaching late in life, taught 25 years and is now 60 and wants to retire, they would have a number of 85 and would be penalized at a rate of 6.0% a year.

 

[BCClone]

Has your wife ever called IPERS and had them figure it? Because she is two years younger that me, made a hell of lot more money that I ever have, and according to what you are saying will bringing home about $900 a month less. By chance what year did you wife start teaching? I started in 1985 as a reference point.
I have had them figure mine a couple time and always get the same numbers, she can also do it online and make an account.

Doing simple math, her 5 year highest average is $70,000 X .60% puts her at $42,000 a year. Take $42,000 divide by 12 months and she should get $3,500 a month before taxes. That is what option 1 should be at least, now the other options will be a little less but not much.
Mine shows me 1 dollar less per month of Option 2.

Shes 49. Going off their projections

 

[SEIOWA CLONE]

Shes 49. Going off their projections

So the numbers are from if she retired today, below the age of 55 and would be penalized for retiring early.
That makes sense.

 

[alarson]

I know this thread is 'not limited' but maybe there might be a better thread for multiple pages of retirement discussion

 

[BCClone]

So the numbers are from if she retired today, below the age of 55 and would be penalized for retiring early.
That makes sense.

No, they are what she would get when she retires at rule of 88 with a projection of 3.50% increase every year. They say 2000/month then. But just a couple years ago, it said 2300/month. It is what IPERS says she will get if those factors continue until then.

 

[SEIOWA CLONE]

No, they are what she would get when she retires at rule of 88 with a projection of 3.50% increase every year. They say 2000/month then. But just a couple years ago, it said 2300/month. It is what IPERS says she will get if those factors continue until then.

Sorry but those numbers cannot be correct, by state law, if she teachers for 30 years, is 55 and has hit her rule of 88 she is entitled to 60% of her highest five years average, when she retires.

 

[BCClone]

Sorry but those numbers cannot be correct, by state law, if she teachers for 30 years, is 55 and has hit her rule of 88 she is entitled to 60% of her highest five years average, when she retires.

And at 55 they take 60% of that 60%. So the entitlement is 24%.


Oops it would net 40% so I adjusted the last number.

 

[aeroclone]

I know this thread is 'not limited' but maybe there might be a better thread for multiple pages of retirement discussion

Amen! Take it outside kids!

 

[BCClone]

Amen! Take it outside kids!

Ok, sorry to interrupt the shelter in place talk of the last 50 pages.

I say we dont do a SIP. Who’s up?

 

[MeowingCows]

Ok, sorry to interrupt the shelter in place talk of the last 50 pages.

I say we dont do a SIP. Who’s up?

But we already effectively are, so we should just call it that!

Now back to your regularly-schooled boomer teacher retirement talks.

 

[madguy30]

Considering how finances are part of the equation in this nightmare I'd say figuring out future finances is legit.