Question about how to enter California teachers' pension
Posted: Wed Aug 11, 2010 7:12 pm
Hello,
I have been trying to figure out how to enter my future pension in the Additions section. It is a California State Teachers pension, and it doesn’t have a standard COLA, but a 2% simple (non-compounded) incremental raise every year, based on the initial benefit amount. 2% of the first year amount is added every year. So I averaged the raises for 10-year segments, and input those amounts as no-cola pensions in 3 or 4 batches. The outcome was not good.
Adding to the complexity is that legislation requires CalStrs to send supplemental payments to bring the benefit up to 85% of the purchasing power of the initial benefit. So there is a built-in floor that won’t allow the benefit to get way out of line with regard to inflation, but it doesn’t really keep up.
So in effect, I SORT OF have a cola pension, and sort of not. Is there a way I can figure it out for a realistic outcome?
I have been trying to figure out how to enter my future pension in the Additions section. It is a California State Teachers pension, and it doesn’t have a standard COLA, but a 2% simple (non-compounded) incremental raise every year, based on the initial benefit amount. 2% of the first year amount is added every year. So I averaged the raises for 10-year segments, and input those amounts as no-cola pensions in 3 or 4 batches. The outcome was not good.
Adding to the complexity is that legislation requires CalStrs to send supplemental payments to bring the benefit up to 85% of the purchasing power of the initial benefit. So there is a built-in floor that won’t allow the benefit to get way out of line with regard to inflation, but it doesn’t really keep up.
So in effect, I SORT OF have a cola pension, and sort of not. Is there a way I can figure it out for a realistic outcome?