Doug,
If you could, if it hasn't been brought up before, could you address the retirement benefits(amounts,%, or any other way of presenting it, and who contributes) and whether or not the teachers pay social security, or are entitled to it. If the school board pays most or some of that, it comes from yours and my taxes, which if true does not seem fair to me. My retirement comes out of my salary and not from my employers. Rather than fan the flames with what I have heard, it would be better to hear from those who might actually know.Bill
You have proven yourself to be neither a coward nor a troll, Bill :thumbsup:....my apologies for having referred to you in such an unkind manner, I should think before I speak, perhaps I would :lipsrsealed: and avoid embarrasing myself.
I'll be glad to answer your questions regarding teacher retirements and Social Security...you hit me at a rather opportune moment, as I just went to the Social Security office this past Friday to get some information. Here's what I can tell you:
The answer to whether teachers pay into a state teacher's retirement fund or S/S or both depends partly on the state in which they are employed, but in my experience not completely. I worked as a teacher in Kansas for 4 years (1976 through 1980), then I moved to Texas. By the time I left Kansas I had enough quarters in S/S to be vested (16 years). When I went to work in Texas, where teachers are not required to contribute to the S/S program, I worked for a district which did not require S/S enrollment. From 1980, until my retirement in 12/2007, I worked for three districts, none of which required me to contribute to the S/S fund. Such is not the case for all Texas school districts, though, for some of them do contribute to both the Teacher's Retirement System of Texas (required of all public schools in the state of Texas) and also to S/S. What makes the difference is the school boards. Some of them are willing to make the additional investment in their teachers' futures, some are not (you'll hear more about this later when WEP is discussed). Just FYI, while I danced a happy dance when I heard in 1980 that I would not be contributing to the S/S fund, I did aggressively pursue concessions from the school boards in each of the 3 districts for which I worked to allow (perhaps as a fringe benefit), if not require, their teachers to participate in S/S. Not one of them would do so, reportedly due to the additional financial strain that would have placed on their budgets. Why did I do so? WEP....more to follow later.
When I retired in 2007, I had a total of 4 years' experience in Kansas and 28 years' experience in Texas. My retirement would have been based on the 28 years in Texas had I not "bought back" the 4 years credit I had for the years in Kansas at a cost of over $26K. My retirement under TRS without the 4 years from Kansas would have been in the range of $41.5K per year. With the 4 years from Kansas, it is in the range of $46.5K per year.
I'm 62 years old, so when I went to S/S to find out about benefits I was told that based on my quarters of contribution (which would not have included the 28 years in Texas, but would have included 14 years of substantial earnings in Kansas) would be $412/month if I were to apply for early retirement benefits now. Should I wait until age 66, when I am eligible for full retirement benefits, my monthly S/S check would be $547/month. However, b/c I worked for all those 28 years for school districts which did NOT allow (or, require) me to contribute to S/S, my monthly S/S benefit is reduced to from $412/month to $169/month now, and would be reduced from $547/month to $222/month if I wait until I turn 66 to apply for benefits. Why is that reduction? The "Windfall Elimination Provision" applies to me and to "some" of the teachers in Georgia (not sure why only "some of them", but perhaps it is like Texas, SOME of the school districts are gracious enough to invest in their employees' futures by allowing them to participate in the S/S program). Here's the zinger--if a teacher who WOULD be subject to the WEP reduction has 30 years of "substantial earnings" in the S/S program, the reduction is waived.
I was told that the maximum S/S benefit ANYONE can receive under S/S is about $2,190 (IIRC, and that may not be so at my age :shocked: ), so I should be happy. Am I.....yes, and no. I am happy with the retirement provided me by the Texas Retirement System of Texas....it far exceeds that which I would be eligible for under the S/S system. I am NOT at all happy with S/S and their "Windfall Elimination Provision", though. I had enough contributions to be eligible for $412/month at age 62, $547 at 66, and $722/month if I waited until I am 70 to apply. Those are contributions that the government has held in their accounts for all those years since I started working in 1964, monies which the government committed to me that they would hold in a safe manner and on which they would base my retirement benefit when I became eligible to receive the moneys. Why am I being "cheated" out of those figures I mentioned (fresh off the documentation that S/S gave me last Friday)? The answer, as I see it (you'll find out they have a different rationale), is:
because I was fortunate enough to have engaged in enrollment in a different retirement plan all those 28 years I was in Texas (I did contribute to the S/S system for the 4 years I worked in Kansas, and they have given me credit for those earnings).
There was a benefit that I haven't mentioned....when you retire from the TRS, you have a number of options, one of which is to take your full annuity until you die, then it's over. However, the other 3 or 4 (depending on how many years of age are between you and your beneficiairy), allow you to leave all or part of your retirement to your beneficiary when you die, either for a limited (5 year or 10 year) period or for the remainder of their life. I was quite frankly suspicious when I became eligible under TRS for retirement and the 5 options were explained to me....it appeared that I could, for about a 20% reduction in my monthly annuity amount, elect for a retirement plan that would allow my beneficiary (which is my 27 year old daughter) to receive my REDUCED monthly annuity amount for the REST OF HER LIFE once I die. You'd
never get that from S/S.
So, in MY CASE, the TRS gave me a retirement amount of about 150% what I would have gotten from S/S, AND that was at the reduced amount b/c I did choose to suffer the 20% reduction and ensure that my daughter would (hopefully) not have to ever worry about where her next meal would come from. I can't speak for the teachers from the other states, as I don't know what options are offered by their retirement plans, nor do I know how their retirement plans stack up to that of the TRS (although, we TRS members are constantly impressed with the financial gains the fund makes under the current team of TRS investors).
My concern is two-fold, though, in this issue in WI....if the teachers were promised something at the time they started their employment as a teacher, and used that promise to make a decision to endure the financial inequities that go with the limited amount of annual employment (never mind the demands of the job, that's something that can't be calculated), then to suddenly deprive them of the benefits (or, as in the case of the WI teachers, require substantially higher contributions that they were required to pay at first) at a late date in their career, seems like the equivalent of what Social Security has done to me. For those teachers in WI who
may not (keep in mind I do not know about the WI retirement provisions) participate in S/S, it is a double whammy....they will be forced to contribute at a much higher rate than they were "promised" at the time they made the choice and started teaching
PLUS they may well suffer further financial indignities forced upon them by the S/S Administration's "Windfall Elimination Provision".
They deserve better, plain and simple.
You may ask why I have such a bone to pick with Republicans....well, during the time when Tom Delay (who, sadly, represented the very same Texas district in which I reside) was Speaker of the House there was a bipartisan bill introduced to eliminate the WEP law. There were over 350 co-sponsors of the bill, both Republican and Democrat. That is about 77% of the House of Representatives. It looked like the unfair (IMHO) law might be overturned, but Tom Delay used the powers of the SOTH to keep the bill from ever coming out of committee to a vote on the floor, where it most assuredly would have passed. Yep, a highly placed Republican was single-handedly responsible for depriving me of a good part of my rightful entitlement under the S/S system in which I was FORCED to participate for a large part of my life. The current GOP seems to be so severely polarized to the far right that the entire party seems to be interested in tactics similar to those employed by "The Hammer" Tom Delay (a nickname he earned while keeping fellow Republicans in the party line as party whip).
So, there's good news and bad news for me, and unfortunately for the public employees of the state of WI and for other states with Governors and legislatures made up of predominantly far-right wing Republicans. The cat-fight in WI was strictly along party lines, the cat-fights in the U.S. Senate and House of Representatives seem to be pretty much striclty along party lines. Nobody seems to be interested in the welfare of ALL of the constituents they represent, only in quashing the other party.
Here's the information on Social Security's "Windfall Elimination Provision":
http://www.ssa.gov/pubs/10045.pdf
A sad state of affairs, indeed :thumbsdown: !
Cheers to you, Bill, for returning to the "scene of the crime" and not :furious: me!
Doug