Register a SA Forums Account here!
JOINING THE SA FORUMS WILL REMOVE THIS BIG AD, THE ANNOYING UNDERLINED ADS, AND STUPID INTERSTITIAL ADS!!!

You can: log in, read the tech support FAQ, or request your lost password. This dumb message (and those ads) will appear on every screen until you register! Get rid of this crap by registering your own SA Forums Account and joining roughly 150,000 Goons, for the one-time price of $9.95! We charge money because it costs us money per month for bills, and since we don't believe in showing ads to our users, we try to make the money back through forum registrations.
The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > Bad With Money 2018: When I die, bury me in the blockchain.
 
  • Post
  • Reply
McDougirl
Jun 22, 2006
this title is custom-made!

Leon Trotsky 2012 posted:

We had somebody quit today because they were moving in a couple of months with their husband.

Why did they quit now instead of in a couple months when they move?

Because they have been here for 9 years and 10 months. You become vested in the pension plan at 10 years (50% of your average salary for your 3 highest earning years of service until death, starting at age 62 unless you do at least 20 years) and if you quit before you become vested you get your pension contributions back with no interest.

She took a payout of about $8,000 instead of the pension and even had the HR Office and Pension Office repeatedly try to tell her not to quit just for this reason.

If she lives to be 80, then she got that 8k in exchange for 270k over 18 years.

I've got a similar one: same thing, public employee with a state pension plan. Same 3 highest earning years, but we're vested after 5 years. Payout is a percentage based on years of service credit. Regardless, you are owed the amount you put in, so even if you die 2 years into retirement, your beneficiary gets the remainder that you contributed plus interest. Otherwise, you'll get paid for life, even if you outlive your contribution. We are able to start collecting a reduced benefit at 60, and the full benefit at 65. This employee is 59.5, and would like a full refund right now.

In other words, definitely wants money NOW, rather than waiting 4 months to be able to collect a small percentage for life or 5 years and 4 months for a significantly larger payout for life - with the same minimum payout with any option. Plus this way there are early withdrawal penalties and additional taxes up front. And to clarify, you don't have to work that 4 months, it's vested, so it just needs to sit there.

For an extra cherry on top, it'll take at least 1.5 months to process since it's an early payout, so really it's down to a 2.5 month wait. BUT IT'S MY MONEY AND I WANT IT NOW!

* # ¿ May 3, 2017 14:06
  • Quote
Adbot
ADBOT LOVES YOU

# ¿ May 8, 2024 16:26
  • Quote
  • 1
  • 2
  • 3
  • 4
  • 5
  • Post
  • Reply
The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > Bad With Money 2018: When I die, bury me in the blockchain.