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Started By
Message
re: BRPD has a great retirement benefit.
Posted on 11/22/14 at 8:47 pm to McVick
Posted on 11/22/14 at 8:47 pm to McVick
DROP has nothing to do with this situation. DROP has nothing to do with the amount of retirement you get. When you elect into it, you stop earning years. Your retirement is calculated and paid into a DROP account(this is like a savings account). Once you are out of it(you can stay in it for up to 5 years), you receive the money from the account and start receiving your monthly retirement. DROP actually saves money due to number of years not increasing(this keeps your retirement amount from going up, unless maxed), and less money the government has to put into retirement. Also, most of these retirement systems have a penalty for drawing before a certain age. I'm not looking up this one though.
2
Posted on 11/22/14 at 8:48 pm to iwasthere
quote:
these retirement systems have a penalty for drawing before a certain age.
see IRA, 401K, etc.
Posted on 11/22/14 at 9:13 pm to iwasthere
Except that when person who has elected to take DROP comes back to work they block someone else from working in the system. I am not a fan of DROP for that reason. Sure, it is only for up to five years, but that is five years where investment in the employee does not happen. The people taking DROP are lame ducks in the government workforce.
I only envision the extremes where either too many people will take DROP over an extended period of time and not save the money it is intended to save, or too many people will take it too early in their careers and be screwed 30 years down the road due to piss poor money management. Too many people in the second scenario will lead to a change in how the program operates and screw over the future generations.
Plus, in many cases earned but unused sick time can be used in the calculations towards DROP.
Disclosure- I am young and am not counting on Social Security to exist when I reach retirement age. Yes, I realize that SS and government pensions are not the same but I believe that the younger generations will get screwed over one way or another.
I only envision the extremes where either too many people will take DROP over an extended period of time and not save the money it is intended to save, or too many people will take it too early in their careers and be screwed 30 years down the road due to piss poor money management. Too many people in the second scenario will lead to a change in how the program operates and screw over the future generations.
Plus, in many cases earned but unused sick time can be used in the calculations towards DROP.
Disclosure- I am young and am not counting on Social Security to exist when I reach retirement age. Yes, I realize that SS and government pensions are not the same but I believe that the younger generations will get screwed over one way or another.
This post was edited on 11/22/14 at 9:21 pm
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