Planning for the Pension HIT?

It's been a while since we have heard from our Pension on the increase that is anticipated this coming September. Has there been any discussion on whats coming.

Rumor has it we are looking at a 12% increase. If your paying $200.00 a month now, it's gonna jump to $600.00 a month. Planning is important but without a contract, no cola increase and no raise......how can we afford this?

I would appreciate some straight talk and some help.

Thanks,
Just a cop

Yep, if you really need that extra 400-500 a month that you are going to be paying, I strongly suggest that you don't make any major purchases (i.e. new car, higher mortgage, etc.). Start saving a little extra in the bank, work some extra duty if you can and save the money, tell your wife to get a part time job for a while and save that money.

Bottom line, save, save, save!!!

Some people are going to hate the increase, but will survive without making any changes to their lifestyle, but many are going to have to make some/major changes to their lifestyle.

Hey, but if you voted for Obama, you won't mind CHANGE! :devil:

Maybe its time you think about going to a 25 year retirement instead of a 20 year retirement. Save thousands

If it goes to 12% that would equate to an 8% pay cut from what your currently make(we pay 4% now.). Calculate the money you will save on income taxes its really like a 6-7% decrease in take home pay. Does anyone want to pay it, no! But if your are so tight in your budget that a 6-7% pay cut is going to devistate you, perhaps you should look where your money is going. I'm not happy about it, but when I think 12% of my pay for 20 years equals 63% of my salary, with cost of living increases and a possible 13th check until the day I die, it seems like the best investment of my life. Then there is the cherry, most years I pay less than 5% for that and don't pay a penny to social security, which is around 7% of pay for the rest of the world. Suck it up, we have been down this road before back in 2003 and 2004. You will survive, if not you can opt out of the pension and join the cities general employee pension fund. Its free and if you work 46 years you get 50% of your salary.

There are a few things that you can do to help off set the cost.

You may have to cut back on what you are putting into your 457 plan, Aka deferred comp.

Instead of banking your holidays, take them out in pay.

Shoot master and don't crash your car this year. Don't burn the days and take the cash just around Christmas time.

Write more traffic tickets and even parking tickets. The more you write the more chance for court time.

Lock up more people, V.O.P. hearings are easy money.

Join the FTO Squad. They receive an extra $230 a month as long as someone on their squad is training.

Look into becoming a 600 unit, they end up making bank off of the D.L. hearings.

There are a few things that you can do to help off set the cost.

You may have to cut back on what you are putting into your 457 plan, Aka deferred comp.

Instead of banking your holidays, take them out in pay.

Shoot master and don't crash your car this year. Don't burn the days and take the cash just around Christmas time.

Write more traffic tickets and even parking tickets. The more you write the more chance for court time.

Lock up more people, V.O.P. hearings are easy money.

Join the FTO Squad. They receive an extra $230 a month as long as someone on their squad is training.

Look into becoming a 600 unit, they end up making bank off of the D.L. hearings.

Great ideas. Also look at your tax withholdings (W2). A change in your withholdings will increase your monthly income. If you are getting back thousands of dollars on your tax return you are paying Uncle SAM way too much each paycheck. You can increase your take home pay without having to work extra duty. There is an electronic worksheet on IRS.gov website that can help you determine your ideal number of withholdings. If you do not feel comfortable doing it yourself contact a tax advisor (not a tax preparer).

[Pat Lynch]

The Pension Board is waiting on the 2008 Actuarial Valuation which will indicate the recommended contribution rate. It will not be completed until May. The Board will then likely set the rate at the May 28th meeting. The newly established rate will take effect the first pay period for FY2010 (October 2009) and will last until the new rate for FY2011 is set (May 2010) based on the 2009 Actuarial Valuation. Notice that everything lags behind one year.

Everyone will receive a letter at their last known address when the rate is set for FY2010.

I encourage everyone to check out the Fire & Police Pension web page on the City website. Just go to the City's home page and choose "Fire & Police Pension" from the department drop-down list. You will find agendas, minutes and all sorts of information about our pension plan.

Pat Lynch
Chairman

Go to a 25 year retirement? Save thousands? Thats why a lot of us are at TPD because there isn't a 25 year retirement. Not gonna happen. I will suck it up with a higher contribution rate before agreeing to that. I used to work at an agency that had 25 yr. retirement and it stinks. That little joke called FRS that the state tries to pass as pension isn't the answer either. Been there done that.

That little joke called FRS that the state tries to pass as pension isn't the answer either.

You must be kidding. No contributions from the officers. 3% multiplier. Yes, you pay Soc Sec but then you get both, that and the pension, with no BS WEP that we would have. The major difference is the disability part and getting it. You also have the opportunity to take it as a lump sum when you retire. Many have well over 1 million when they leave. When they die, the entire amount goes to the living spouse. But I guess you know it all, it's a crappy pension.

The increase this October 2009 will be marginal as compared to the increase coming in October 2010, that will be the one that will bankrupt everyone. Keep in mind that the increase is always for the previous fiscal year. Fiscal year 2009 will most likely be the worst in decades. You could be looking at contributions @ 18% and higher based on past trends. The only way to protect yourself is to enter drop or retire. The increased multiplier, 20 and out has put an additional economic strain on the pension fund in these economical hard times.

Go to a 25 year retirement? Save thousands? Thats why a lot of us are at TPD because there isn't a 25 year retirement. Not gonna happen. I will suck it up with a higher contribution rate before agreeing to that. I used to work at an agency that had 25 yr. retirement and it stinks. That little joke called FRS that the state tries to pass as pension isn't the answer either. Been there done that.
I'll be retired at 50 yoa after 5 years in the DROP, start off at 54,000 pension and 260,000 in DROP money. You're right it sucks, wish I had never done it. Keep paying your 4-18%, I never did, not a penny from my check for my retirement, just the usual SS that everyone else in America pays. FRS paid the rest FOR ME. :devil:

We've had it very good for the last several years. After 911 we took a hit and paid 12% and 11%. The years after that were less than 2% and now we are at 4%. FRS employees pay 6.2% into social security every year. They will receive very little if any social security when they turn 62. Yep, 62. Sorry to break the news to you guys but some of you won't make it to 62. Any pittance you do get from social security will be reduced based on your retirement pay including your drop payments. TPD cops have paid an average of 6% for the last 25 years. Since we don't pay social security our pension benefit is essentially FREE!!!!!!!! 25 years, NO THANKS!!!

1 MILLION DOLLAR LUMP SUM? At 5% return that's $50,000 a year. What happens when your lump sum loses money? By the way the average FRS employee ain't gettin no million bucks. Maybe a few senior staff members with 30 years.

Also don't forget that back in the 70's FRS special risk multiplier was reduced to 2% and did not get back to the full 3% until 1993.

How da ya like dem apples sucka!!!!!!

I'll be retired at 50 yoa after 5 years in the DROP, start off at 54,000 pension and 260,000 in DROP money. You're right it sucks, wish I had never done it. Keep paying your 4-18%, I never did, not a penny from my check for my retirement, just the usual SS that everyone else in America pays. FRS paid the rest FOR ME.

Its actually 1-12%, but I see you like to fudge the numbers. You forgot you worked 25 years for that $54,000 plus another 5 for that drop money. I will work 20 and my pension will be $57,000.00 a year. I also will get a 13th check worth $5K-10K a year if the fund is doing well. So lets take this further.You worked 5 extra hard long year for your FRS pension, assuming you make $75,000.00 a year you would have paid $375,000 for the FRS pension with five years of additional work and you are getting a lower pension than me and no 13th check, does not seem so free to me. So why you are out responding to DV calls I on the other hand have been out on my boat for the last five years collecting $57,000 a year.In regards to drop, every pension in the State has that. Its nothing new. TPD can join it and they pay nothing into the pension after the drop. If I drop at 20 years, I will make $285,000 before interest, its a wash for both pensions. So to sum this up, yes I will pay for my pension. Over a 20 year career I may invest about $40,000 in it. But I will retire 5 years before you and collect $285,000.00 in pension payments before you are ever egible to retire. Hmmm I bet you woould pay $40,000 spread over 20 years to retire 5 years earlier, get a 13th check, higher multiplier. Math can be fuzzy can't it, here is your sign.

You must be a complete idiot to get on here and brag about how much you are getting for retirement. Then you wonder why people are outraged at your pensions. Just like the take home cars out of your jurisdiction. Another outrage. You get what you deserve when the mayor takes a hard line this summer. You have had the gravy train to long on the tax payers expense. Good luck, your going to need it.

oh yea dipshit its a huge secret. There is only an article about goverment pensions and the drop every two weeks in the trib. Keep thinking its your little secret. My pension is a deal for the taxpayer not a luxury. For every $1.00 the city pays up, I pay 80 cents. Because of my contributuion to my pension the city does not pay 7.2% of my pay into federal social security, a sum that saves them ten million a year. I have no reason to hide, our pension should be a model. So go back into your cloud where you think what we have is a big secret, the onlyt secret is how much our plan has saved the tax payer over the last 20 years vs what paying social security and a 401K match would have cost the city and the federal goverment when we could have retired as a social security collector. This job takes your life and I deserve every penny of what I get. I'm not concerned about the mayor when it comes to my pension, that is the reason we have our own police and fire pension so politicians can't control it or bankrupt it. P.S. Did you really think you were getting much from the city this October.

The increase this October 2009 will be marginal as compared to the increase coming in October 2010, that will be the one that will bankrupt everyone. Keep in mind that the increase is always for the previous fiscal year. Fiscal year 2009 will most likely be the worst in decades.

Not even close. In FY2008, the fund lost about 30% of its value. Since October 2008 the fund has lost under 10%. We're halfway through with FY2009 and have lost under 10%. The market has started going back up and will most likely continue to do so. Barring something unexpected, FY2009 will not be anywhere near as bad as it was in 2008.

The increase this October 2009 will be marginal as compared to the increase coming in October 2010, that will be the one that will bankrupt everyone. Keep in mind that the increase is always for the previous fiscal year. Fiscal year 2009 will most likely be the worst in decades.

Not even close. In FY2008, the fund lost about 30% of its value. Since October 2008 the fund has lost under 10%. We're halfway through with FY2009 and have lost under 10%. The market has started going back up and will most likely continue to do so. Barring something unexpected, FY2009 will not be anywhere near as bad as it was in 2008.

I don't know where you got your numbers, but I just read the pension web page and it shows...

Minutes from meeting 10-23-2008, Page 2, Item #8:
“Investment return as of 9/30/2008 was –14.1% for
the fiscal year ended 9/30/2008.”
http://www.tampagov.net/FPAgendas/minutes/20081023.pdf


Agenda for meeting 04-23-2009, Page 2, Item #11:
“Investment return as of 03/31/2009 has been –24.5% so far this fiscal year.”
http://www.tampagov.net/FPAgendas/board_packages/20090423_Board_Package.pdf

“Investment return as of 03/31/2009 has been –24.5% so far this fiscal year.”[/url]

The only positive is that the market has been doing better recently and hopefully in the next six months we will make up for a lot of those losses. October through February were bad months for the market and that is reflected in the year to date return. If I recall correctly, the fund was already down about 30% for the 2009 fiscal year back in December.

FY10=13.5%
FY11=11%