» Union Fails Pension Math: Part Time-Teacher Set to Earn More in Retirement than She Did While Employed - Big Government:
by Ben Everard
Shortly after the Green Bay Packers turned the nation’s attention to the Midwestern state, Wisconsin once again has garnered the nation’s attention. At stake this time is not a trophy, but a prized retirement package promised to public employees. Throngs of protesters have taken to Madison, Wisconsin to either show their support or disdain for Governor Scott Walker’s plan to require public employees to pay 5.8 percent (the national average is roughly 12 percent) of their salary as a contribution to their pension."
And here's the kicker. Read the whole thing.
My mother worked as a public employee when she was a teacher’s aide in Sheboygan, Wisconsin. She was employed by the state for five years, from 1981-1986. However, she worked only part-time, so was never credited for a full year of employment by the state for each year she worked. Instead, she received only partial credit each year. Fortunately for her, Wisconsin and two other states (Minnesota and South Dakota) allow for full vesting for public teachers after only three years of employment. Using a deduction for her part-time status, Wisconsin determined her creditable service amounted to 3.07 years. Had she worked three weeks less during her last year, she would be entitled to nothing. As luck would have it, she fully vested, and is entitled to receive a monthly check from the state of Wisconsin for the rest of her life.
Like millions of fellow baby boomers, she turns 55 this year. And in Wisconsin, one can elect to draw benefits at age 55. If she retires this year and elects to take her pension, she would receive a check, once a month, for $230. She receives this check for the rest of her life, and, if she predeceases my father, he is entitled to cash the check for the rest of his life.
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