Police officers contribute to the pension system at an 8% rate, slightly higher then the social security rate. Their employers pay into the pension system at a rate slightly higher then social security as well, but I'm not positive of the rate.
Retirement pay is based on years of service, with the minimum amount of service being 20 years and the maximum being 30 (for determining benefits - you can stay longer, but your benefits do not increase).
No, I do not pay into social security, nor, will I draw any benefits. I guess those contributions I made as a teenager are just that, free contributions. Everyone is welcome!
Because I am a pension employee, my wife, who does pay into social security, is penalized and will only be allowed to draw up to a maximum of 50% of HER benefits (could be as low as zero), even though she has been paying at the same rate as everyone else. Because her spouse is a pension employee, she is penalized. Go figure that one out.
A police officer's average life expectancy is 58-years. The average police officer lives 5-years after retirement. Not sure how that other 20-year job plays into those figures. That's probably a good reason most police pension systems are always so fiscally sound.
I find it a little strange you say it's okay for someone in the military to retire and go work someplace else, but other government employees (working for the same 'employer') can't. Many military people make more then other government employees. Their housing and many other essentials are paid for, yet.... Weird.
And, what prevents a fiscally sound person to retire early from their private sector job, draw from their own retirement funds and going out and starting a new job? Not a darn thing. But that is okay?
You and your employer pay at a slightly higher rate than SS and can retire (min service 20 yrs) and draw benefits at age mid 40s as compared to min age 62 for SS. At age 62, I will be entitled to reduced benefits. Full benefits at age 66 for me, later for those younger. If I were to die at 58, I would get zero benefit from nearly 40 years of contributions.
As you present it, I agree that the 50% on your wife's SS appears unfair. When my dad died, my mom gave up
all of her SS benefits to get my dad's SS benefits. Mom was a stay at home mom so dad's benefits were better. Mom's benefits from dad's private sector retirement were also reduced after dad died from the level my dad got while he was still alive.
I just checked my SS benefits statement and saw:
Benefits:
"To qualify for benefits you earn "credits" through your work - up to four each year. This year for example, you earn one credit for each $1,090 of wages or self-employment income. When you've earned $4360, you've earned your four credits for the year. Most people need 40 credits, earned over their working lifetime, to receive retirement benefits. For disability and survivors benefits, young people need fewer credits to be eligible." So, most workers will be eligible for benefits after 10 years of working (but have to wait until age 62 to get them). Since most SS beneficiaries work more like 40 years, the fine folks in Congress (another story) have determined that your benefits will most likely be reduced for contributing for only a few years instead of your entire career.
"Windfall Elimination Provision (WEP)". "If you receive a pension from employment in which you did not pay Social Security taxes and you also qualify for your own Social Security retirement or disability benefit, your Social Security benefit may be reduced, but not eliminated, by WEP. The amount of the reduction, if any, depends on your earnings and the number of years in jobs in which you paid Social Security taxes, and the year you are age 62 or are disabled."
"Government Pension Offset (GPO)" "If you receive a pension based on federal, state or local government work in which you did not pay Social Security taxes and you qualify, now or in the future, for Social Security benefits as a current or former spouse, widow or widower, you are likely to be affected by GPO. If GPO applies, your Social Security benefit will be reduced by an amount equal to two-thirds of your government pension, and could be reduced to zero. Even if your benefit is reduced to zero, you will be eligible for Medicare at age 65 on your spouse's record.
It sounds as though if you are still alive, your wife should be eligible for her SS benefits. When/if you die before her and she elects to take your TPD retirement, her SS benefits would be reduced then.
I was not aware that retired police officers lived an average of nearly 20 years less than the general populace. I guess my friend who is retired from the TPD is due to die soon. He appears to be in good health. I'll miss him. I got the 20 yr figure based on graduating from college at 21 or 22, another year or so to become an officer. Add 20 and you get 40 something. Retire from the force and get a "good paying job" in the private sector, pay into SS and if you live long enough you get SS too or your wife should be able to collect if she outlives you.
I don't understand your statement that you cannot work somewhere after retirement. My (retired from TPD) friend is working in the private sector and I respect his integrity enough to believe he is not violating any provisions of his retirement. I haven't kept up with military allowances or pay but when I was in (1972-76) the allowance for living off base wouldn't cover living off base without a roomie or two. Married living quarters were provided in base housing. OK but nothing special. I don't know if the allowance for married personnel would cover living off base. I got drafted and was enlisted. I believe Officer (O-1 through maybe O-3) pay at the time was still on the order of about 1/2 of what I could have earned as a beginning engineer (4 year degree). My cousin works for the US Post Office. He has indicated that he will retire after 20 yrs of Civil Service (not all at the USPS) and get another job. If the retired military can get a civil service job, then that's a benefit I am willing to pay a career military person. FWIW, I paid into SS when I was in the Navy. I don't know if that has changed.
The "thing" that prevents a fiscally sound person in the private sector from drawing from their "retirement funds" is minimum age requirements. I cannot draw on my 401K or IRA funds without penalties until age 59-1/2. Even though I have contributed 12% or more of my salary to a 401K Plan for close to 20 yrs, the present return on that would not put me above the poverty level. The only place I've worked with a legacy retirement program terminated the program after a few years when IRAs became available. I will get about $100/mo from that program but have to wait until 60+ to collect anything. A couple of employers did not match any of my 401 contributions. My present employer matches up to about 4%. If I had enough money in my savings independent of official "retirement accounts", you are correct. I could draw on them just like I could from my checking account. I am not that fortunate.
