Molly Janczyk: OEA and the 88%/35 yr enhancement backlash
From: Molly Janczyk
Sent: Monday, November 21, 2005 12:27 PM
Subject: OEA and the 88%/35 yr enhancement backlash
In recent months, the OEA endorsed speakers have brought this to the forefront and now STRS membership is more curious about this rule and demanding a study of how the rule impacts total membership.
Issues have been raised such as:
-how does it compare with OPERS who does not offer such enhancement for 35 yr workers Compare their payout for 35 yr workers who work for higher retirement on incremental steps but not an over 20pt. % difference.
-w/o the incentive to work, how many would actually go 35 yrs. ?
-what is the dollar figure of an educator going for 35 yrs paying into the system 5 yrs longer and only increasing retirement step percentages to add for those addt'l 5 yrs vs. that same educator paying into the system for 5 more yrs AND receiving the enhancement?
IF THE COMPARISON ABOVE SAVES SO MUCH, WHY WOULD OPERS NOT OFFER THIS SAME DEAL?
-how many retired at 30 yrs. pre 35 yr enhancement vs. post 35 yr. enhancement? was this created for OEA board members at a subjective level?
WHAT IS THE TRUE IMPACT ON STRS? -would more retire at 30 yrs w/o the rule? -does it save STRS to offer incentive to work for 5 add/tl yrs. vs. many of those retiring at 30 IF no incentive was offered merely paying them step increases for each addt'l yr. THEY ARE STILL PAYING IN and receiving less to do so.
THE REAL QUES IS: HOW DOES THIS COMPARE WITH:
-STRS paying those retiring at 30 yrs and STRS having to pay them pensions vs. -offering them enhancements to work 35 yrs, not paying them pensions for an addt'l 5 yrs and paying them an addt'l 20% when they do retire.
STRS says this offsets the pensions they would pay them at 30 yrs as they work 5 yrs more w/o pensions and paying into system.
SO: SOLUTION TO ALL ABOVE:
-RAISE the retirement age/yrs to retire to be more competitive in the world as with other systems where: -20 yrs IS early retirement: access to HC up thru 19 yrs. - older when do retire: (grandfather incrementally as with Soc Sec: 5 yrs out-54; 6 yrs out-55; 6 yrs out-57 up to 58 yrs for full retirement at 30 yrs.
for early retirement at 20 yrs. must be 60 yrs old.
Sent: Monday, November 21, 2005 12:27 PM
Subject: OEA and the 88%/35 yr enhancement backlash
In recent months, the OEA endorsed speakers have brought this to the forefront and now STRS membership is more curious about this rule and demanding a study of how the rule impacts total membership.
Issues have been raised such as:
-how does it compare with OPERS who does not offer such enhancement for 35 yr workers Compare their payout for 35 yr workers who work for higher retirement on incremental steps but not an over 20pt. % difference.
-w/o the incentive to work, how many would actually go 35 yrs. ?
-what is the dollar figure of an educator going for 35 yrs paying into the system 5 yrs longer and only increasing retirement step percentages to add for those addt'l 5 yrs vs. that same educator paying into the system for 5 more yrs AND receiving the enhancement?
IF THE COMPARISON ABOVE SAVES SO MUCH, WHY WOULD OPERS NOT OFFER THIS SAME DEAL?
-how many retired at 30 yrs. pre 35 yr enhancement vs. post 35 yr. enhancement? was this created for OEA board members at a subjective level?
WHAT IS THE TRUE IMPACT ON STRS? -would more retire at 30 yrs w/o the rule? -does it save STRS to offer incentive to work for 5 add/tl yrs. vs. many of those retiring at 30 IF no incentive was offered merely paying them step increases for each addt'l yr. THEY ARE STILL PAYING IN and receiving less to do so.
THE REAL QUES IS: HOW DOES THIS COMPARE WITH:
-STRS paying those retiring at 30 yrs and STRS having to pay them pensions vs. -offering them enhancements to work 35 yrs, not paying them pensions for an addt'l 5 yrs and paying them an addt'l 20% when they do retire.
STRS says this offsets the pensions they would pay them at 30 yrs as they work 5 yrs more w/o pensions and paying into system.
SO: SOLUTION TO ALL ABOVE:
-RAISE the retirement age/yrs to retire to be more competitive in the world as with other systems where: -20 yrs IS early retirement: access to HC up thru 19 yrs. - older when do retire: (grandfather incrementally as with Soc Sec: 5 yrs out-54; 6 yrs out-55; 6 yrs out-57 up to 58 yrs for full retirement at 30 yrs.
for early retirement at 20 yrs. must be 60 yrs old.
posted by Kathie Bracy at 8:06 PM
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