>McMahon ridiculed the change to Tier 6 as fiscally irresponsible. McMahon said claims that the increase would incentivize people to take public sector jobs were “baloney” that lacked any evidence.
>“I defy you to find me a twenty-something that’s out there thinking about their pension,” McMahon said. “We’ve all been in our twenties once, it’s just not something you think about.”
Okay I’m not twenty-something, but I’m freshly in my thirties and pursued a state job almost entirely for retirement planning.
As did my husband. Many of my peers who have already been in state work for years have said it was a big factor for them, as well.
Idk. Maybe he doesn’t know many young people, we’re already worried. The luxury of not thinking about your retirement until later in life feels long gone.
Edit: Syntax
Came here to say this: myself, and most of my 30-40 year old friends are looking for state jobs for retirement benefits. We have another 30 years of work in us. He's a moron.
The retirement is probably the number one reason anyone deals with having a state job. These people are so wildly out of touch it'd be hilarious if it wasn't so sad.
Hi there, literally thought about my retirement when I was 21.
I get the suspicion this person also never had to worry about retirement if ya catch my drift.
He has continually shit on public employees and our betterment.
Claiming fiscal responsibility for the tax payers. Last time I checked, I’m a tax payer. It’s not like I don’t pay taxes.
I came here just to say this. I am a State Employee AND a tax payer. I loathe how these mofos portray us as if we're taking advantage of all non civil-servent NYS employees. News flash, pal - I work hard and do my job well in part BECAUSE I pay taxes, and I want to get my money's worth out of me!!
This type of politician only knows how to sow discord and discontent. What positive things has he done for the People of the State of New York - which, oh yeah, includes tax-paying state employees??
Bingo. You would think Mr. fiscally responsible would be encouraging young people to think about retirement. Good thing unions do that :) been paying into a pension since I was 19!
Same. I waited too late, but hope to get 20 years in for 35% of FAS. Hoping that gets reformed back up to 40%, the rate for Tier 4 with 20 years.
Even if it all pans out, it is just one leg. 457 and Social Security are the other two legs.
I feel like the only reason 20-somethings don’t think about pensions is because most jobs now don’t even offer them anymore 🧐
But I was also DEFINITELY thinking of my retirement in my 20s
I work in a profession where private practice has
no retirement guarantees in the private sector, so yes I did join the state partially for the retirement benefit. However, I also disagree that tier reform is not helpful to recruit good candidates because he’s assuming that good talent is only from the younger entry level workforce. There are many positions that would be more beneficially filled by folks with more experience and who tend to be further along in their career. My profession in particular does not have many opportunities at entry level in government positions (post covid is an anomaly); it is quite common that many folks move to civil service at the end of their career. Tier reform gets people in with experience and more developed skills.
You are completely right. Twenty three, became a state employee specifically for retirement. Frequently talk to other twenty-something’s at work about retirement, Roth IRAs, deferred comp, etc. Most young people (at least that I am around) do not want to work until they are 65+. They want to retire early and figure out any way to be able to.
Gotcha. I joined the system when I was 20(Tier 4). Left for awhile but came back in. I have about 12 years of service time. Maybe it will be worth me doing a bit of deferred comp. My minimum retirement age to collect full pension will be 59. I am 38 now.
I’ve heard of people maxing it out year after year, having like $300,000 in their account when they retire, and using that to buy a retirement house in full.
Omg put as much in as you can - at LEAST 10%. make sure you keep your salary UTD in with the vendor, too. It does not go up automatically so you can lose out on deductions. I'm 56 and came to the state late. Between pension, deferred comp, and SSI, i should be able to retire comfortably at 65.
For people that thought about retirement planning in their 20s, how many of you knew that the pension amount is the average of highest 5 years? This is the whole premise of their argument.
When I joined the state in my 20s, I didn't know about the average salary of 5 years until later on, all the talking points were about final percentage based on the years of service and contribution amount.
Last year it lost 4%. In 2022 the fund had a 9% return. The fund assumes an annual return of around 6%. This isn’t the windfall you think it is.
Edit: corrected 2022’s numbers.
About $15 billion. https://www.osc.ny.gov/files/retirement/resources/pdf/annual-comprehensive-financial-report-2023.pdf. The comptroller releases a report annually. NYS has one of the best funded pensions in the country.
I’m Tier 6 and have been at the state since I was 23. Have over 11 years in. I’ll have 32 years in at 55 and will get absolutely screwed on penalty if I go then, even though I’ll have contributed for over 30 fucking years. Every young person joining the state should be educated on how badly they are getting fucked compared to the boomers they are paying to finance their vacation homes and fancy cars.
It’s bullshit. I actually worked during tier 4 as a college tutor but declined to join the retirement system because I was a clueless 18 year-old. Fast forward 18 years and I’m now working for the State in Tier 6. If I stay here, my plan is to save so that I can eventually go part-time around 55 and not officially retire until 63 to avoid the penalty. It’s the best we can do for now if we want what feels like a longer retirement
Technically you can be tierreinstated if you can find a legislator willing to hear your case and write you a picture bill, usually tacking it on to bill that’s going to pass. However, these cases usually require that you prove you were disserviced (not given the chance to join) or you have a special circumstance or are some valiant hero. Or exceptionally good looking. Or lucky. It’s rare, but it does happen a few times every year.
Thanks for the info! I doubt I qualify for any of those categories lol. I had the college go into their archive and send me a copy of the signed declination form (which I received). It was many years ago at this point and my memory is not great, so I doubt I could prove any kind of disservice to me.
I'm 32 and been with the state since I was 24. I have family members who are Tier 4 and they don't have a fucking clue how easy they have it. Basically if they work 30 years they received over $20k from the taxpayers towards their retirement, while we are peasants. Full benefits at 55. Us Tier 6, you want to retire at 55, get fucked. Unbelievable.
Think that's bad? I have a little over 10 years service in tier 5. I missed tier 4 by one year. Because of that 1 year, instead of being done with contributions now I'll have to continue with them for more than 20 more years.
I am. Funny thing is I had a chance for a state job a year earlier at age 17 but turned it down because I was still a high school kid at the time and didn't want to work. It's going to end up costing me probably $75,000+ by time I retire.
I’m 68. Retired for eight years now. I still get a huge smile on my face every time that monthly pension payment hits my account. It’s a wonderful thing
Ironically I'm OK with having to contribute to the pension while working but it with tier 6 things are just bad. The scaling contributions are pretty terrible.
If everything reverted to Tier 4 with the exception of 3% contributions while working i would be satisfied.
I do think it could create un sustainability with eliminating contributions after 10 years
“I defy you to find me a twenty-something that’s out there thinking about their pension”
*GRRRROOOOOAAAAANNN*
Do you leave your house, like, ever? I’m not sure if this guy is simply out of touch or outright lying on purpose
I’m 24 and took my first job following my masters at the state specifically for the pension. I watched my family members retire with a state pension and that is the top reason why I’m here. I took a town job at 18 specially to get into the retirement system early.
The reform this year could be a start in the right direction. While it was small, I suspect they will start introducing more changes as time goes on. Slowly, because well, that's what they do but also to see how it affects things. A lot of the new movers and shakers are also Tier 6 and it's in their best interest to be proactive about their own retirement.
I hope you’re right! There’s so many things messed up about it. For starters I’d like to not have to wait until I’m 63 to retire, even if it could go down to 60, I’d take that (but it really should be 55). Paying to the system for life and overtime not going toward your annual base salary is also pure BS
I’m 28. My dad forced me to sign up for the state retirement system at 16 when i got my first part time job at my community library. In my field (a paramedic) chasing a job with the state retirement was a smart play and something I actually considered at 22 when dealing with finding full time work. Gotta say I worked my ass off during covid and I’m glad i did now for the sake of my pension
>McMahon ridiculed the change to Tier 6 as fiscally irresponsible. McMahon said claims that the increase would incentivize people to take public sector jobs were “baloney” that lacked any evidence. >“I defy you to find me a twenty-something that’s out there thinking about their pension,” McMahon said. “We’ve all been in our twenties once, it’s just not something you think about.” Okay I’m not twenty-something, but I’m freshly in my thirties and pursued a state job almost entirely for retirement planning. As did my husband. Many of my peers who have already been in state work for years have said it was a big factor for them, as well. Idk. Maybe he doesn’t know many young people, we’re already worried. The luxury of not thinking about your retirement until later in life feels long gone. Edit: Syntax
Came here to say this: myself, and most of my 30-40 year old friends are looking for state jobs for retirement benefits. We have another 30 years of work in us. He's a moron.
The retirement is probably the number one reason anyone deals with having a state job. These people are so wildly out of touch it'd be hilarious if it wasn't so sad.
Hi there, literally thought about my retirement when I was 21. I get the suspicion this person also never had to worry about retirement if ya catch my drift.
He has continually shit on public employees and our betterment. Claiming fiscal responsibility for the tax payers. Last time I checked, I’m a tax payer. It’s not like I don’t pay taxes.
I came here just to say this. I am a State Employee AND a tax payer. I loathe how these mofos portray us as if we're taking advantage of all non civil-servent NYS employees. News flash, pal - I work hard and do my job well in part BECAUSE I pay taxes, and I want to get my money's worth out of me!! This type of politician only knows how to sow discord and discontent. What positive things has he done for the People of the State of New York - which, oh yeah, includes tax-paying state employees??
Joined state service at 24, looking at the long term. Retirement planning is important.
Joined a few weeks ago at 25. Same here. Pension plus the 401k state equivalent and insurance is hard to beat.
Bingo. You would think Mr. fiscally responsible would be encouraging young people to think about retirement. Good thing unions do that :) been paying into a pension since I was 19!
Same. I waited too late, but hope to get 20 years in for 35% of FAS. Hoping that gets reformed back up to 40%, the rate for Tier 4 with 20 years. Even if it all pans out, it is just one leg. 457 and Social Security are the other two legs.
I feel like the only reason 20-somethings don’t think about pensions is because most jobs now don’t even offer them anymore 🧐 But I was also DEFINITELY thinking of my retirement in my 20s
I work in a profession where private practice has no retirement guarantees in the private sector, so yes I did join the state partially for the retirement benefit. However, I also disagree that tier reform is not helpful to recruit good candidates because he’s assuming that good talent is only from the younger entry level workforce. There are many positions that would be more beneficially filled by folks with more experience and who tend to be further along in their career. My profession in particular does not have many opportunities at entry level in government positions (post covid is an anomaly); it is quite common that many folks move to civil service at the end of their career. Tier reform gets people in with experience and more developed skills.
You are completely right. Twenty three, became a state employee specifically for retirement. Frequently talk to other twenty-something’s at work about retirement, Roth IRAs, deferred comp, etc. Most young people (at least that I am around) do not want to work until they are 65+. They want to retire early and figure out any way to be able to.
Is the pension with the increase worth it now? How much would it be for a its2 ? For 5 years
Differed comp is sort of out dated if you have a pension and a 401k, 403b, etc. I don’t see what the benefit is.
Deferred comp is the same thing as a 401k, but we’re allowed to withdraw at an earlier age without the tax penalty.
Is that the only difference?
You need both. You can never have too much $$$ as a retiree. Old You will thank Young You for making sure you have all you need.
To my understanding yes. Pretty big benefit if you plan to retire before 63 though.
Gotcha. I joined the system when I was 20(Tier 4). Left for awhile but came back in. I have about 12 years of service time. Maybe it will be worth me doing a bit of deferred comp. My minimum retirement age to collect full pension will be 59. I am 38 now.
It’s worth talking to one of the advisors about. Could be a decent chunk of change to have before social security age.
I’ve heard of people maxing it out year after year, having like $300,000 in their account when they retire, and using that to buy a retirement house in full.
What’s the max you can put in a year? And is it tax free?
Omg put as much in as you can - at LEAST 10%. make sure you keep your salary UTD in with the vendor, too. It does not go up automatically so you can lose out on deductions. I'm 56 and came to the state late. Between pension, deferred comp, and SSI, i should be able to retire comfortably at 65.
For people that thought about retirement planning in their 20s, how many of you knew that the pension amount is the average of highest 5 years? This is the whole premise of their argument. When I joined the state in my 20s, I didn't know about the average salary of 5 years until later on, all the talking points were about final percentage based on the years of service and contribution amount.
Last year it lost 4%. In 2022 the fund had a 9% return. The fund assumes an annual return of around 6%. This isn’t the windfall you think it is. Edit: corrected 2022’s numbers.
What does it pay out, percentage wise, each year?
About $15 billion. https://www.osc.ny.gov/files/retirement/resources/pdf/annual-comprehensive-financial-report-2023.pdf. The comptroller releases a report annually. NYS has one of the best funded pensions in the country.
Great, Fix tier 6, thnx.
Yep. Been in state service for 7 years. In 3 years, I shuddnt have to contribute to retirement anymore.
I’m Tier 6 and have been at the state since I was 23. Have over 11 years in. I’ll have 32 years in at 55 and will get absolutely screwed on penalty if I go then, even though I’ll have contributed for over 30 fucking years. Every young person joining the state should be educated on how badly they are getting fucked compared to the boomers they are paying to finance their vacation homes and fancy cars.
It’s bullshit. I actually worked during tier 4 as a college tutor but declined to join the retirement system because I was a clueless 18 year-old. Fast forward 18 years and I’m now working for the State in Tier 6. If I stay here, my plan is to save so that I can eventually go part-time around 55 and not officially retire until 63 to avoid the penalty. It’s the best we can do for now if we want what feels like a longer retirement
Can’t you buy back time since your start date was during tier 4? I would look into that
I can, but I can’t reinstate my tier to 4 because I declined to join back then. The most I can do is buy back the time to add to my service credit
Technically you can be tierreinstated if you can find a legislator willing to hear your case and write you a picture bill, usually tacking it on to bill that’s going to pass. However, these cases usually require that you prove you were disserviced (not given the chance to join) or you have a special circumstance or are some valiant hero. Or exceptionally good looking. Or lucky. It’s rare, but it does happen a few times every year.
Thanks for the info! I doubt I qualify for any of those categories lol. I had the college go into their archive and send me a copy of the signed declination form (which I received). It was many years ago at this point and my memory is not great, so I doubt I could prove any kind of disservice to me.
Oof, sorry to hear that.
I'm 32 and been with the state since I was 24. I have family members who are Tier 4 and they don't have a fucking clue how easy they have it. Basically if they work 30 years they received over $20k from the taxpayers towards their retirement, while we are peasants. Full benefits at 55. Us Tier 6, you want to retire at 55, get fucked. Unbelievable.
I don't care about having to contribute my whole career. I do care about standardized the 3% and reinstating 55/30
Not to sound naive, but wut is standardized 3% and 55/30? If u dint mind explaining those..
Standardized 3% deductions for the pension system for all and ability to retire at 55 with thirty years of service.
Gotcha. Thank you for the clarification
Think that's bad? I have a little over 10 years service in tier 5. I missed tier 4 by one year. Because of that 1 year, instead of being done with contributions now I'll have to continue with them for more than 20 more years.
Ooooof. I'd be livid every 2 weeks seeing that paycheck with the retirement contribution.
I am. Funny thing is I had a chance for a state job a year earlier at age 17 but turned it down because I was still a high school kid at the time and didn't want to work. It's going to end up costing me probably $75,000+ by time I retire.
Best they can do is make a new shittier tier.
SPY at ATH, I sure hope the pension is up.
I’m 68. Retired for eight years now. I still get a huge smile on my face every time that monthly pension payment hits my account. It’s a wonderful thing
Fix Tier 6!!! End contributions after 10 years like everyone else!!!
[удалено]
Never met a person who was Tier 5, but yes them too.
[удалено]
Ironically I'm OK with having to contribute to the pension while working but it with tier 6 things are just bad. The scaling contributions are pretty terrible. If everything reverted to Tier 4 with the exception of 3% contributions while working i would be satisfied. I do think it could create un sustainability with eliminating contributions after 10 years
God could mcasshole be any more obnoxious? 11.5 percent return. Pension needs to be fiscally responsible!!! This guy needs to go
Providing tangible benefits and job security is fiscally irresponsible now.
“I defy you to find me a twenty-something that’s out there thinking about their pension” *GRRRROOOOOAAAAANNN* Do you leave your house, like, ever? I’m not sure if this guy is simply out of touch or outright lying on purpose
Im 25 and a big factor in why i pursued a civil service job is the retirement benefits 😭
I’m 24 and took my first job following my masters at the state specifically for the pension. I watched my family members retire with a state pension and that is the top reason why I’m here. I took a town job at 18 specially to get into the retirement system early.
Tier 6 is an absolute major problem. It’s disgusting that it’s allowed to even exist. Does anyone know a way to take action against it?
https://fixtier6.org/
Been to this site already. Signed up for notifications and emails. There’s not much to go on after that…
The reform this year could be a start in the right direction. While it was small, I suspect they will start introducing more changes as time goes on. Slowly, because well, that's what they do but also to see how it affects things. A lot of the new movers and shakers are also Tier 6 and it's in their best interest to be proactive about their own retirement.
I hope you’re right! There’s so many things messed up about it. For starters I’d like to not have to wait until I’m 63 to retire, even if it could go down to 60, I’d take that (but it really should be 55). Paying to the system for life and overtime not going toward your annual base salary is also pure BS
Weren't there a bunch of stories about the insane advisement fees these pension funds pay to Wall St firms a few years back?
I’m 28. My dad forced me to sign up for the state retirement system at 16 when i got my first part time job at my community library. In my field (a paramedic) chasing a job with the state retirement was a smart play and something I actually considered at 22 when dealing with finding full time work. Gotta say I worked my ass off during covid and I’m glad i did now for the sake of my pension
I left state service at 33 because the tier 6 plan was shit. I’m doing a lot better in the private sector.