The page below is a calculation of how a demographically determined Private Sector worker in West Warwick Rhode Island pensions compare the average active Public Employee in West Warwick.
http://www.sptimes.com/2007/02/27/Lifetimes/How_to_calculate_your.shtml
so above is a link to figure out the value of the pension
employees are expecting to receive
...this is real data as issued Jan 13 2014
and using current annuity quotes.
test it for yourself..
demographic of
active West Warwick public Employee
|
|
Age
|
Income
|
Retirement Contributions by employee
career until age 65 *
|
Value of Pension
At retirement
1.8 factor
6.7% rate
|
Annual Pension Income Replacement
|
|
West Warwick Public Employee
|
Age 45
with 11.8 years of service
|
$46,991
|
$192,865
|
$67,667
($84,583*80%)
Annuity value
$ 1,048,608
|
80 % +cola
|
|
Private Sector Worker S.Sec only
|
age 40
assume working since 28
|
$20,250
|
$ 61,742
|
(($42,399+$20,250)/2) age 65 input to SSA
$ 1037*12
$12,444
Annuity Value
$ 192,871
|
$12,444/$42,399=
29%
|
Conclusion: Public employees in West Warwick 1) earn more than twice the median income of other residents in that town. 2) Public employees contribute 3 times as many dollars in their Career for
pension and receive 5 times as much value in retirement. 3) Social Security private
sector workers replace only 29% of pre-retirement income while Public Sector
workers replace up to 80% of highest salary
inputs monthly income
raised 3% annually until age 65 final
payout 80% highest salary did not include colas
http://www.ssa.gov/retire2/AnypiaApplet.html inputs
current income raised 3% annually until retirement produces monthly benefit $ 1037
http://en.wikipedia.org/wiki/Rhode_Island_locations_by_per_capita_income
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