Leader

Collapse

Announcement

Collapse
No announcement yet.

Contribution into PERS

Collapse

300x250 Mobile

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Contribution into PERS

    PERS. I was looking at the benefits for some of the police departments and they use PERS as their retirement system. I understand the basic concept of it, but when it says that employee will pay 8% or so into PERS, what does that mean exactly? Does it mean that you pay 8% of you salary into PERS on top of all the other taxes that you already have to pay? What is the percentage of your salary that you give up after paying taxes and PERS?

  • #2
    Originally posted by mtruong131 View Post
    PERS. I was looking at the benefits for some of the police departments and they use PERS as their retirement system. I understand the basic concept of it, but when it says that employee will pay 8% or so into PERS, what does that mean exactly? Does it mean that you pay 8% of you salary into PERS on top of all the other taxes that you already have to pay? What is the percentage of your salary that you give up after paying taxes and PERS?
    The contribution percentage usually depends on how old you are when you enter the force, and if you select refundable vs. non-refundable. With refundable, you will generally pay a higher percentage. Basically, let's say your agency just has you pay 8% of your salary into PERS, this will only be 8% of your GROSS BASE salary...not your OT.

    Yes, you will have to pay Fed, State, Medicare taxes, union dues, and depending on your agency, possibly the offset of your medical / dental / vision / other insurance monthly premiums. Since your agency has PERS, you will not have Social Security to pay into.

    Your tax base really depends on what your salary is...so this is subjective.
    On average, your net pay will be about 76 - 77% of your gross pay...this is without any OT. The percentage will increase if you do add some OT due to not having to contribute the additional monies to PERS.
    "Think about the consequences before you mess with a Deputy Sheriff."

    Comment


    • #3
      Look for agencies that pay the employee's contribution too. The best deal is if they pay all benefits into your gross pay, so they'll be considered part of your regular salary. When you retire (if you max out at 90% for 30 years service in the 3% @ 50 program) you could actually be taking home more than when you were working, provided you didn't work much OT.
      "I'm not fluent in the language of violence, but I know enough to get around in places where it's spoken."

      Comment


      • #4
        Also the employee portion of the PERS contribution comes out pre-tax so if you work for an agency that requires you to pay it reduces your tax liability for your income tax.

        We often refer to our wages as being "PERSable" meaning whether or not the wages count towards our salary for purposes of caculating retirement. Any regularly scheduled pay you receive, with the exception of overtime, has the employee contribution taken out (or paid for by your employer on your behalf). Examples of other pay that counts towards retirement is FTO pay, shift differential, and seniority or longevity pay.

        If you quit prior to retirement your employee contributions are yours and you can either leave them in PERS and draw a pension at age 50 (provided you have 5 years of service credit) or you can pull the funds out and either roll into a retirement account or pay the tax penalty and spend it.
        If you see me running try to keep up!

        Comment


        • #5
          Originally posted by LeeRoy View Post
          If you quit prior to retirement your employee contributions are yours and you can either leave them in PERS and draw a pension at age 50 (provided you have 5 years of service credit) or you can pull the funds out and either roll into a retirement account or pay the tax penalty and spend it.
          I thought you needed seven years of service credit to be vested?
          "I'm not fluent in the language of violence, but I know enough to get around in places where it's spoken."

          Comment


          • #6
            Originally posted by pulicords View Post
            I thought you needed seven years of service credit to be vested?
            With CalPers the term vesting means you have the minimum amount of service credit required to retire. Whether or not a member is vested does not affect the ability to withdraw member contributions after separation. Attached is a link to CalPers FAQ on withdrawl of contributions.

            http://www.calpers.ca.gov/index.jsp?...funds/faqs.xml
            If you see me running try to keep up!

            Comment


            • #7
              Originally posted by pulicords View Post
              I thought you needed seven years of service credit to be vested?

              It's five.

              Comment


              • #8
                Anyone know how this relates to STRS? I'll be leaving my teaching job for an LEO job in a couple weeks and I'm wondering if my STRS account can just be rolled into my PERS account. I know I'm not the only teacher to jump ship

                Comment


                • #9
                  Originally posted by JH164 View Post
                  Anyone know how this relates to STRS? I'll be leaving my teaching job for an LEO job in a couple weeks and I'm wondering if my STRS account can just be rolled into my PERS account. I know I'm not the only teacher to jump ship
                  You won't be able to roll your money over. The key is whether STRS grants you limited reciprocity with CalPERS. (i.e., you leave your money in STRS. When you later retire from CalPERS and STRS, it must be on the same date for both. STRS then computes your pension with them based on your highest rate of pay under CalPERS.) You will need to ask STRS if they do this.

                  CalPERS grants limited reciprocity if you move from a CalPERS job to an STRS job, so hopefully, STRS does the same. To get an idea how CalPERS does it, go to:

                  https://www.calpers.ca.gov/mss-publi...6-2007.7.1.pdf then read Page 6.
                  Going too far is half the pleasure of not getting anywhere

                  Comment

                  MR300x250 Tablet

                  Collapse

                  What's Going On

                  Collapse

                  There are currently 6181 users online. 218 members and 5963 guests.

                  Most users ever online was 19,482 at 11:44 AM on 09-29-2011.

                  Welcome Ad

                  Collapse
                  Working...
                  X