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TRSL (teacher) retirement question.
Posted on 7/8/14 at 4:15 pm
Posted on 7/8/14 at 4:15 pm
Can someone please explain exactly what UAL is? I understand that I will contribute 8% of my income to retirement, but my employer contributes 28 percent??? There's no way. How does this work?
By law, the employer contribution rate is made up of two components: the normal cost of funding retirement benefits and payment to the System’s unfunded accrued liability. In years past, the employer rate has been the same for all employers. However, since Act 716 of the 2012 legislative session, employer rates are individually determined for each of the retirement system’s sub-plans.
The normal cost portion of each plan's employer contribution rate varies based upon that plan's benefits, member demographics, and the rate contributed by employees. The result is that employer contributions vary slightly from year to year. The shared UAL contribution rate is determined in aggregate for all plans.
The proposed employer contribution rates for Fiscal Year 2014-15 are as follows:
K-12 Regular Plan
Employee Normal Cost Rate = 8.0%
Employer Normal Cost = 5.2454%
Employer Shared UAL = 22.7%
Total Employer Contribution = 28.0%
By law, the employer contribution rate is made up of two components: the normal cost of funding retirement benefits and payment to the System’s unfunded accrued liability. In years past, the employer rate has been the same for all employers. However, since Act 716 of the 2012 legislative session, employer rates are individually determined for each of the retirement system’s sub-plans.
The normal cost portion of each plan's employer contribution rate varies based upon that plan's benefits, member demographics, and the rate contributed by employees. The result is that employer contributions vary slightly from year to year. The shared UAL contribution rate is determined in aggregate for all plans.
The proposed employer contribution rates for Fiscal Year 2014-15 are as follows:
K-12 Regular Plan
Employee Normal Cost Rate = 8.0%
Employer Normal Cost = 5.2454%
Employer Shared UAL = 22.7%
Total Employer Contribution = 28.0%
Posted on 7/8/14 at 4:31 pm to bayoubengals88
quote:It's the total amount of excessive retirement benefits teachers are promised to get.
Can someone please explain exactly what UAL is?
Posted on 7/8/14 at 4:55 pm to LSURussian
quote:
LSURussian
quote:
teachers
Chances of jimmy-rustling: 100%
Posted on 7/8/14 at 5:34 pm to LSURussian
quote:lump sum post retirement?
It's the total amount of excessive retirement benefits teachers are promised to get.
Is it put into a mutual fund like the 8 percent that I will contribute? I'm guessing no...
Posted on 7/8/14 at 11:05 pm to bayoubengals88
quote:
Is it put into a mutual fund like the 8 percent that I will contribute? I'm guessing no
it is a pension plan
Posted on 7/9/14 at 10:02 am to bayoubengals88
The UAL (unfunded account liability) occurs because your predecessor teachers and their employers did not contribute enough money to the retirement plan in earlier years. So now, more money needs to be put into the plan. Making a dramatic increase to the employee share isn't politically feasible, so they hit the employer share with the cost.
And yes, they are paying that much in. Why do you think the school systems are broke?
And yes, they are paying that much in. Why do you think the school systems are broke?
Posted on 7/9/14 at 11:25 am to LSUFanHouston
Thanks.
It just sounds like an unbelievable amount. Therefore, in the even that such a contribution becomes unsustainable I will be prepared.
quote:
And yes, they are paying that much in.
It just sounds like an unbelievable amount. Therefore, in the even that such a contribution becomes unsustainable I will be prepared.
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