Submitted by [deleted] t3_yih97g in personalfinance
skarletlightning t1_iuj26go wrote
Make sure you fully understand the conditions of the pension.
For example if you work under CALPERS making $100k, leave right after being vested, then decide to retire at 52, your pension would be as low as $400/month:
Service Credit (5 Years worked) x Benefit Factor (1% at 52) x Final Compensation (100k for the last 3/5 years worked) = $5k/year
adjusted for 26 years of the historic inflation average and thats more like $200/mo and $2.5k/yr in today's dollars
Bezdbefazed t1_iujq8jm wrote
Yeah, I have not vested yet so currently I would not be eligible for anything. It really only benefits me significantly if I stay with my current employer until retirement age of 63 to maximize the potential benefits.
Edit* at 5 years it would amount to just a few hundred bucks here and there as you stated.
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