Oh that's a good question. You are probably right, but it didn't come up in our interview. I'll make note to ask next time I have someone with a pension. Thanks for reading!
it's just interesting because 1) unions have a cost obviously (dues) but 2) give so much to workers, especially women, I'm curious to hear peoples relationship to them
I’m fortunate to have a pension but am not part of a union. I work for an integrated health system.
I was intrigued by the MA law referenced in the article about pension recipients potentially not being eligible for their full Social Security benefits (boo)!
I'm not 100 percent on the details, but i believe this only applies to state pensions (teachers, state employees, etc) - in those jobs in MA you pay into those pensions via a mandatory contribution but do NOT pay social security contributions on your taxes, which means you don't get SS credits.
Definitely taking notes on some of this diarist’s smart financial choices and calculus on spending vs saving. Also, I live in Texas and can confirm the rough math on IVF- my husband and I did spend approximately $30,000 out of pocket in the last two years because of infertility issues and I’m now finally pregnant for the first time ever! I hope I live long enough to see every state mandate insurance coverage for something so essentially basic to human existence.
I admire your commitment to both the environment and your bank account by buying used, home improvements, and avoiding takeout. I am the same way, but I also know that individual improvements do little compared to the impact we could have by government imposed regulations on corporate polluters.
I love reading these, even though I'm later in my life and career, and have no kids - Married, Childfree Cat Lady here. I spent 25 years working for schools, and anticipated pension payments are the safety net for my future retirement, but haven't slowed our desire for a very comfortable retirement. Love to hear the investments in the climate and their health as drivers and benefits for savings as well - it isn't often we think about shifting eating habits as a pathway to climate, health, and fiscal impact!
The union dues were always a little source of frustration while I worked, but the end result, after leaving public service with 25 years in, if I wait until 62 to draw my pension I should get about 50% of my final salary, which will be enhanced by our other investments and planning.
I am in CA - and I thought the pension rule was a Federal rule? There is both the GPO - Government Pension Offset and the WEP - Windfall Elimination Provision (WEP)
If you receive a pension from an employer who didn't withhold Social Security taxes, your Social Security benefit is often reduced under WEP. However, you won't be subject to the WEP if you paid Social Security taxes for 30 years on enough work outside of your pension-earning job(s) (which most educators don't meet).
GPO impacts spousal/survivor benefits as well. If you receive a retirement or disability pension from a federal, state, or local government based on work for which you didn’t pay Social Security taxes, your Social Security benefits are reduced. And if you claim spousal or survivor benefits, your amount claimed is directly reduced 2/3 by the amount of your pension, preventing a pension earner from receiving both full social security and pension.
My spouse is a high earner, and can claim social security once he qualifies, but in an eventuality that I outlive him, I would likely receive $0 from his social security as a spouse due to my pension. I think lots of teacher and educator unions have been fighting since its inception, but given there are already concerns SS might run out of $$ I wonder if it will ever be adjusted or ended.
Love how environmentally conscious this couple is! My takeaway is to look into my husband's pension plan and see how that impacts our retirement planning. Can't wait to hear about the in-person event :)
I am guessing because both of these people have pensions that they're both union members. I wish that was discussed more!!!
Oh that's a good question. You are probably right, but it didn't come up in our interview. I'll make note to ask next time I have someone with a pension. Thanks for reading!
it's just interesting because 1) unions have a cost obviously (dues) but 2) give so much to workers, especially women, I'm curious to hear peoples relationship to them
Yes, I agree!
I’m fortunate to have a pension but am not part of a union. I work for an integrated health system.
I was intrigued by the MA law referenced in the article about pension recipients potentially not being eligible for their full Social Security benefits (boo)!
I'm not 100 percent on the details, but i believe this only applies to state pensions (teachers, state employees, etc) - in those jobs in MA you pay into those pensions via a mandatory contribution but do NOT pay social security contributions on your taxes, which means you don't get SS credits.
Definitely taking notes on some of this diarist’s smart financial choices and calculus on spending vs saving. Also, I live in Texas and can confirm the rough math on IVF- my husband and I did spend approximately $30,000 out of pocket in the last two years because of infertility issues and I’m now finally pregnant for the first time ever! I hope I live long enough to see every state mandate insurance coverage for something so essentially basic to human existence.
Congratulations! The financial toll on families who need IVF is immense. We need nationwide coverage.
I admire your commitment to both the environment and your bank account by buying used, home improvements, and avoiding takeout. I am the same way, but I also know that individual improvements do little compared to the impact we could have by government imposed regulations on corporate polluters.
Loved this one! I thought: “Wow—is this lifestyle doable for me??”
“We don’t go to restaurants or get takeout.”
“….Nope!”
I love reading these, even though I'm later in my life and career, and have no kids - Married, Childfree Cat Lady here. I spent 25 years working for schools, and anticipated pension payments are the safety net for my future retirement, but haven't slowed our desire for a very comfortable retirement. Love to hear the investments in the climate and their health as drivers and benefits for savings as well - it isn't often we think about shifting eating habits as a pathway to climate, health, and fiscal impact!
The union dues were always a little source of frustration while I worked, but the end result, after leaving public service with 25 years in, if I wait until 62 to draw my pension I should get about 50% of my final salary, which will be enhanced by our other investments and planning.
I am in CA - and I thought the pension rule was a Federal rule? There is both the GPO - Government Pension Offset and the WEP - Windfall Elimination Provision (WEP)
If you receive a pension from an employer who didn't withhold Social Security taxes, your Social Security benefit is often reduced under WEP. However, you won't be subject to the WEP if you paid Social Security taxes for 30 years on enough work outside of your pension-earning job(s) (which most educators don't meet).
GPO impacts spousal/survivor benefits as well. If you receive a retirement or disability pension from a federal, state, or local government based on work for which you didn’t pay Social Security taxes, your Social Security benefits are reduced. And if you claim spousal or survivor benefits, your amount claimed is directly reduced 2/3 by the amount of your pension, preventing a pension earner from receiving both full social security and pension.
My spouse is a high earner, and can claim social security once he qualifies, but in an eventuality that I outlive him, I would likely receive $0 from his social security as a spouse due to my pension. I think lots of teacher and educator unions have been fighting since its inception, but given there are already concerns SS might run out of $$ I wonder if it will ever be adjusted or ended.
Love how environmentally conscious this couple is! My takeaway is to look into my husband's pension plan and see how that impacts our retirement planning. Can't wait to hear about the in-person event :)
I had no idea IVF is covered in MA. That’s so wonderful. I’m so happy for this financially minded and kind author!
Thank you for the introduction to Fruitful — such a cool tool!!
I love reading this – and hope to submit one soon once my busy work season is over!
And WHEW that WSJ article...I almost feel like they wrote it just to be click-baity, especially given how short it was.