More guys leaving California

[AzInv]

About a week or two ago I was at AZPOST dropping off some training records and they were administering the AZPOST Waiver test...The fifteen guys out of twenty that were taking the Waiver were from California....That is truly amazing....When I took mine three years ago, there were only three from Cali.....I know the Cost of Living is terrible there, but how can you leave that 3%@ 50 pension...that is the best in the country....If I had 3%@50, I think would attempt to stick it out...

[pkagel]

Well, right now I'm in Cali trying to get back into LE. I live in a 1200 sq ft house on a 50x100 ft lot. I'm buying a 3000 sq ft house in TX in a much better school district and the house is 49 years newer and on 1/2 acre. The pay in the area runs about 10-15k less and the commute is non-existant in comparison. Add all this to the politics of CA and that is why everyone is leaving. Retirement is great, if you bought your house 10 years ago and can afford to live here and you know the weather doesn't get any better than sunny SoCal but everything else is awful. My commute has gone from 1 hour to 1.5 to 2 hours in just the last 2 years. I am making 38/hr and can barely afford to live since my wife stays home to take care of our daughter. We make it and have no bills other than house payment and essentials but we sure aren't living the high life.

[retired]

About a week or two ago I was at AZPOST dropping off some training records and they were administering the AZPOST Waiver test...The fifteen guys out of twenty that were taking the Waiver were from California....That is truly amazing....When I took mine three years ago, there were only three from Cali.....I know the Cost of Living is terrible there, but how can you leave that 3%@ 50 pension...that is the best in the country....If I had 3%@50, I think would attempt to stick it out...

With the existing financial conditions in California, I will be surprised to see the 3% at 50 survive.

[Stan Switek]

With the existing financial conditions in California, I will be surprised to see the 3% at 50 survive.

You are such a ray of sunshine..

[AzInv]

Wow 3%@50 not survive, that is radical,, they better detail more people to Arnolds Protection detail...Plus I thought once they put a benefit in..no one can ever take it away.....So if you are retired your paycheck just stops coming? If you have 10 yrs on the job, they just say you are now not gonna get the 3%@50.. take a 401K, I think that would be illegal

[Frank Booth]

Tell me more about the AZ POST waiver test.....

As far as the pension, don't be surprised if they lose it. That's the trend. More and more places are losing (for new hires) a defined benefit pension and getting a defined contribution pension. Look to pay ever increasing medical costs too. And when the Big 3 lose their defined benefit pensions, just about everywhere else will fall like dominos.

[Stan Switek]

Wow 3%@50 not survive, that is radical,, they better detail more people to Arnolds Protection detail...Plus I thought once they put a benefit in..no one can ever take it away.....So if you are retired your paycheck just stops coming? If you have 10 yrs on the job, they just say you are now not gonna get the 3%@50.. take a 401K, I think that would be illegal

Before 3% at 50 I think it was 2.5% at 50. The change most often mentioned is 3% at 55. It does not mean those retired would stop being payed. It would just be a change in the retirement formula. Ive head not even a rumor of the current pension plan being under funded.

[Ballen0351]

What does that mean 3% at 50.
Are retirement is 50% of your base pay after 20 years and 2% more for every year after until 30 years
Or at 20 you go into the drop They retire you but you still work and get paid but you also gat your retirement at 50% your base pay. They put that money into a special account and after 5 years you have to retire and they give you a lump sum of the money in the account and you still get your 50% every month. So depending on you rank that lump sum is like $500,000

[Frank Booth]

You get 3% of whatever your pension is based on, and you have to be at least 50 years old to start collecting.

[Ballen0351]

You get 3% of whatever your pension is based on, and you have to be at least 50 years old to start collecting.

Thats in addition to the pension you already get?
where does that money come from did you have to pay into it or is it just a bonus?

[Stan Switek]

Here is an example. You work 30 years & at age 50 you decide to retire. Here is where the 3% at 50 comes in: 3% x 30 years of service = 90% of your highest years pay. Of course there are al sorts of variations depending on yor years of service. You & your employer pay into the public employees retirment system which funds the retirement.

Here is another example. You work 27 years, decide to retire at 53 years of age, your wage is $6000 a month at retirement. 3% x 27 years of service = 81% of $6000 = $ 4680 monthly as your retirment compenstaion. Depending on your contract with your employer, you may ahve to pay medical insurance out of that compensation. Now, of you have a nice 457 plan you have paid into, that gravy.

[Stan Switek]

Thats in addition to the pension you already get?
where does that money come from did you have to pay into it or is it just a bonus?

Noooooooooooo.... THat is the pension. See my example above.

[Ballen0351]

Got it I have never heard of a system like that is pretty nice. Got to work along time however 30 yrs or til your 50

[pkagel]

Only 20 yrs or 50 yo for most Cali depts.

[Stan Switek]

Someone correct me if Im wron here but under the CA system, you cant collect till you are 50 years old. Some cities who have their own system you may very well be able to retire after 20 years but it will not be very much. For example, you hire on at 30, work 20 years till 50 & retire. You get 60% of your pay. Say you are making $5000 monthly at retirment. Your retirerment would be $3000 monthly. Better than nothing but not a pot of gold.