Wednesday, May 23, 2012

SB1040 on Fast Track in House

Call your representative now. House committee republicans do not seem to care about the financial harm they will do to retirees, current teachers, and future teachers.  When former teachers gave examples of how raising the copay from 10% to 20% would devastate their monthly income, Phil Stoddard of the Office of Retirement Services (ORS) reminded the committee that low income subsidies existed for those finding it hard to make ends meet. 

Really!?  The answer to pulling the plug on someones monthly pension is to say go get a bridge card?  Better start doing something or we will be working for poverty wages.

Current teachers can expect to cough up 4-7% of their annual salary just to keep the 1.5% multiplier.  But if you don't want to pay out that much, you can take a lower 1.25% multiplier.  Not sure what that translates into lost money at retirement, but I bet it is a significant chunk of change.  But wait, you have a third option!  You can be your own financial advisor and put your money into a 401K style retirement fund.  I seem to remember a little something call the Recession of '08.  Ask a retiree how they fared with their 401k after 2008.

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