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Any insight into a school teacher's pension?
I looked up pension on wikipedia but i still dont understand it much. What is it? How much is it? Do i have to do anything to get it? Is it just something i get when i retire or is it something i have to make contributions to inorder to get? Thanks!
2 Answers
- Anonymous1 decade agoFavorite Answer
It could be both, depending on what state you are in.
For many states, the teacher's pension is an alternative to paying into the Social Security system. In other words, instead of paying into FICA like most of us do, a teacher in California pays into STRS. It is roughly the same amount.
When you retire, it pays you a monthly benefit, depending on how long you worked and how much you made. That is the classic definition of "pension".
Your state or district also may offer an in-house self-directed system or access to outside 403b programs, which works similar to a 401k, but probably does not have a match. If it does, this program will hand you a lump sum when you retire that you can roll over to an IRA.
Hope that helps!
Ken Clark
Certified Financial Planner
Source(s): http://www.kenclarkcfp.com/ - 1 decade ago
in general 8% of your salary is put into your strs retirement system. when you retire, yoiu will get a terrrific pension. for me, after teaching for 30 years, i will get 100% of my salary...great for a guy who is 53 years old...teachers pension is far greater than social security. contact the state retirement system of the state in which you work and they will send you the info you need
