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View Diary: Federal workers out-earn private sector ones ... at the low end. At the high end, they earn less. (66 comments)

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  •  OK. (0+ / 0-)

    Guess it's just some states and counties that give workers a pension instead of SS.

    Seems like I hear it mostly about teachers, but I've heard of some city workers who weren't in SS either.

    never understood that.

    If Obama doesn't deserve credit for getting Bin Laden because he didn't pull the trigger, Bin Laden doesn't deserve the blame for 9-11 because he didn't fly the planes.

    by Bush Bites on Tue Jan 31, 2012 at 01:48:09 PM PST

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    •  People with state pensions take a reduction in SS (2+ / 0-)
      Recommended by:
      JeffW, Bush Bites

      They have what's called a "windfall" provision that reduces what you get in SS benefits by a certain proportion. This is true even if you paid into SS at other jobs: if you collect a state pension from a job for which you did not pay into SS, your SS is reduced even if your payments into SS in other jobs would normally bring higher benefits. I, for instance, have a state pension that reduces my SS to about 2/3 of what my earned SS credit would otherwise merit. In this sense public employees do in fact subsidize other people's SS.

      Note to NSA: You can have my Constitution when you pry it from my cold dead hands. Nyah Nyah Nyah

      by smith on Tue Jan 31, 2012 at 02:04:13 PM PST

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      •  Interesting. (0+ / 0-)

        Sounds like the opposite of my situation, I guess.

        SS will be kind of my baseline, and my pension (which isn't much) and 401k will more or less be extra income.

        If Obama doesn't deserve credit for getting Bin Laden because he didn't pull the trigger, Bin Laden doesn't deserve the blame for 9-11 because he didn't fly the planes.

        by Bush Bites on Tue Jan 31, 2012 at 02:19:54 PM PST

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      •  Not all states have pension plans that exempt (0+ / 0-)

        employees from paying FICA tax.   State employees in my state pay FICA tax in addition to contributing to the state pension plan.

    •  It's how the system was structured... (1+ / 0-)
      Recommended by:
      Bush Bites

      ...I was told when I started with the City of Chicago in 1983. After 1986, new hires paid into Medicare, but not me. And my first job out of engineering school, as an environmental engineer working for the Lake County Health Department, I paid into the Illinois Municipal Retirement Fund and Social Security. Since I worked for them only 9 months, it wasn't worth my while to leave the money in IMRF, as I would have had to put in a year's contribution to transfer it to my City pension. At the time I was unemployed, so I took out the money from IMRF. My mother always bugged me about that (she helped me get the job, having been a supervisor of the their Health Clinic Lab), but I would have had to add the money at the time I actually drew it out, and had no idea I'd be working for the City five years later.

      As for my Social Security, I'd need 5 more quarters for the minimum, and I'd get very little due to windfall.

      Float like a manhole cover, sting like a sash weight! Clean Coal Is A Clinker!

      by JeffW on Tue Jan 31, 2012 at 02:06:13 PM PST

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