A Government Pension - What You Should Know

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A lot of people do not understand the federal pension and this is partly because pensions have been phased out over the last 60 or 70 years and now most employees are forced to use a 401K to take more responsibility of their retirement. In this video, I discuss the basics of the federal government pension that you can earn within 5 years of service. Have you started applying to a federal government job? Let me know down below.

Thanks for watching!

#governmentjobs #governmentjob #retirement

[Mav]

People don’t understand how valuable a pension is

[AlvinLovesAnime]

This is very good information for my fellow college peers. The private sector may offer higher salaries in the beginning of your career (I'm a GS-4 at the moment), but the government has better job security and a generous pension.

[consumerdebtchitchat]

My parents are all retired teachers. I start my 19th year of teaching today in fact 😊. No one was ever laid off.
I was taught the value of a pension decades ago. At the age of 38 I chose to trade the volatility and age discrimination of corporate life and follow my parents footsteps.
I may not be a high-tech person at Google, but I'm also not crying on tik Tok that I was laid off for the third time from my six-figure job.

I stand to make more money retired than I make working between my pension, social security and what will be six-figure private savings. All three will pay out for life and to my spouse as well.

And the fact that I'm in my dream job is just an added bonus.

[oldjarhead]

25 years ago I swapped from a great paying contractor job to a GS job. I bought my military active duty time and retired at 58.

[Fatelvis]

I worked 34 years for my pension I am grateful for it BUT it was a very toxic situation and with so many coworkers dying before or shortly after retirement I question if it was worth it put me back at square 1 and I would taken more sick time and volunteer furlough as I could

[victoriayork]

My H worked 40 years at McChord AFB. He retired at 59, then he passed away at 68 and I am now receiving 55% of his pension as his survivor. This along with my personal State pension and SS, I now make $50K more per year than my highest salary. Kinda crazy….

[TonyFromSyracuse]

if I could give any young person advice its to try really really hard to get a County/State/Federal job....that is, a job with a strong union and a pension system. its not sexy like a private sector job and they wont give you tons of money or perks but if you are willing to play the long game, one day you will retire and have a forever pension...that is a pension that will keep coming till you die. the jobs there tend to be more stable also. I work for the county been there 37 years and the years just flew by. now when I retire I will get pretty much 4000 a month and then in around 5 years I will take SS and its going to get even better. had I gone out into the private sector when I was offered a job, I would have gotten layed off around 10 years later as they closed.

[gbinman]

There is a huge variety of pensions. Most municipal pensions are very different than federal. Vesting, retirement ages, pension years of service formulae and portability. I am retired from Los Angeles Fire. My pension system includes Los Angeles City Police and Fire and there was no ability to transfer to any other jobs and retain benefits. My pension was also Social Security exempt, so my SS benefits are limited by WEP. I retired with 78% of last year salary with 29 years of service applied to my pension. Federal pensions tend to pay less but provide incredible portability.

[bruintoo]

Los Angeles: highest twelve months salary rate x number of years of service x 2.16%. And with 3% COLA per year with health care coverage! They take 11% of income as contribution to pension.

[Index-o]

🙄-I have lost my focus, I don't even know why I keep showing up to work knowing that I don't need to anymore.

[wewhoareabouttodiesaluteyo]

I just had a webinar recently on my state pension.

5 fiscal year (hired in November 2022, but the fiscal year starts on June 1st of the following year, 2023) vesting or 20 years of service. But if I reach 65 and complete vesting, I get at minimum $1k per month to life. Then again, any pension is subject to change depending on legislation.

[christophersmith]

Headline should read Federal Government Pension.

[Nwakaego_]

Thanks for this breakdown, Armand. Your skillset of explaining things is wonderful. You make it all so clear and concise.

[roachtoasties]

I doubt a lot of people move to a high-cost area during their last three years of government employment to increase their pension (like from Mississippi to Washington DC). There are so many issues, including there won't magically be your same job when you arrive, the huge costs of packing up your family and moving, and the number one: Finding a place to live in your new high cost living area that won't break you. Buying a new home in Washington DC, New York, or wherever, will increase your costs of living astronomically at just the wrong time (near are at retirement). Rent is at least twice as much. Tons of other increased expenses too. If you plan on moving back to Mississippi after this three year fiasco, lets tack on those expenses too. That cheap home you had back then that you've lived in for decades, is no longer cheap. Anyway, I'll leave it at that.

[ourblazingworld]

I work for the state govt it's 2.5% yes I feel blessed.

[wewhoareabouttodiesaluteyo]

Weirdly enough, the state pension I have is calculated as 5% contribution from paycheck, 67% salary matched by the state and this goes into a balance. This balance then has the ability to get upside percentages or is set to a 4% interest. The distribution is some actuarial formula. So 5 years would mean $250k combined employee/employer match/153 (actuarial formula) = $1633/month. But then I asked, "What happens if I exhaust the $250k?" If this happens, it starts coming out from the state's general fund. I was like "O_O." Now I know the meaning of "set for life."

[colechapman]

I work in New York State and you can work in any agency, and after 20 years, you can retire with your pension. That means if you start early, you can retire in your 40s from NYS, receive the pension, and you still have ten more years to work in a private sector gig so you can earn two incomes at the same time

[hammerdown]

6 years from a 90% of income... 30 year pension. Ill be 52. If I stay another 5 years Ill have $500k lump sum to reinvest too that I can start drawing penalty free at 59 1/2. The only good thing about my job is my pension and why im still here.

[robertknight]

My municipal pension gives us 3.33% per year and we have a 5 year drop.

[interestedparty]

An exception to this that is what’s commonly known as 6c retirement. This is a special retirement provision for law enforcement, firefighters, and air traffic controllers.

This particular retirement is 1.7% a year for 20 years of service After 20 years, it’s an additional 1% a year.

The catch is that one can only retire under this system with 20 years at age 50, but you have to do 25 years if you want to retire before then.

It’s also worth mentioning that regardless of the retirement type, premium pay but not overtime are also calculated in the high three.