Friday, February 24, 2006
So no matter what option I take, I see my take home pay dropping
Feb. 17, 2006
Total compensation plan options
So, here I am thinking that with the change to Los Alamos National Security, LLC, and with the number of years with the Lab (33+), I would be sitting in the catbird seat and everything would be great. Now I find out that no matter what option I take I will be penalized.
Option 1. Retire early - If I take this option then I would have to take a significant reduction in salary. Seventy-three percent is nothing to sneeze at, but with one kid in college and another in ninth grade this is not an option.
Option 2. Straight transfer to TCP1 - Not a bad way to go except now I am one of the 400+ that do not pay in to Social Security. With Option 2 I would have to, so I would again, have to take a significant hit to my salary.
Option 3. Go inactive and become a new employee of LANS LLC, retire within 120 days, retain my health insurance and yes, double dip for several years. With the way it is set up now, even if I retired June 1, 2006, I would have to pay all my health care premiums and that would be a significant portion of my take home pay.
So no matter what option I take, I see my take home pay dropping. I know that I am not the only one in this boat, and I know several people who pay into Social Security were going to try to double dip. I feel that I have been slam dunked. Everyone who felt that going inactive and transferring to LANS LLC and hoped to keep their health insurance needs to send their comments by e-mail to email@example.com.
(You all made too much money before, but we've fixed that now.)
First you made a choice not to pay Social Security. Choices have consequences.. some good and some bad. You have had higher take home pay for a while because of no Social Security payments and now that choice has consequences that should have been obvious when you made it.
Second, you and pretty much everyone else at LANL are seeing what a lot of other people are seeing in this country. Know that you are not alone and (I think) 40 million other Americans will be not having health insurance because they retired.
You are also going to see that all the promised retirement benefits are going to fizzle one by one as people realize that the government can't borrow anymore from next year to pay this years bills. This one has been the choise of everyone in this country.. we have believed it when our politicians said "dont worry about it." and we voted them in again and again because we didnt want to worry about it.
As far as SS, welcome to America. If you analyze what you will get for putting in the minimum 40 qtrs (10 yrs) for retirement benefits under SS, you will find that your return is far, far greater than those of us who have paid in for 40 years. All those quarters you worked as kid before coming to LANL count by the way.
The conclusion among my colleagues would be for you to retire and try to get rehired.
So - someone please explain again to me. What is the 120 days (or 90 days?) all about if I go inactive vested and then stay with LLC w/TCP2? I assume, because I can't find it anywhere, that once you go inactive vested you can't take lumpsum. Annuity is only choice. Is this true? Again - I wouldn't need medical, but I do want lumpsum, if possible and I'd stay with LLC in a new employee status for a bit to get my bearings and to buy me a little more time to steer a new future.
SOMEONE PLEASE ENLIGHTEN ME MORE.
If you are inactive vested and you die while inactive, what is the status of your monies. To me - since you are inactive your beneficiery pretty well loses everything. Is that how anyone else sees it?
This statement is misleading. If you have a pension from salary where you didn't pay SS, any SS benefits are subject to the "windfall elimination provision" and will be getting quite a bit less that the default shown on your SS statement. Check it out!
My God, man, you're going to get 73% of your current salary
with retirement, the UC pension, plus cheap health care!
Most of the remaining staff would kill to be in your lucky
position. Retire, and enjoy the rest of your life! If
you later feel to need to keep working, try to come back
as a retiree. If you can't survive on 73% of your current
salary at this late point in your life, then you need to
re-evaluate your current life style and pare down on the
Everyone now wants some discussion. We all feel betrayed and abandoned. We are all looking for some fellowship and some advice. Advice sure isn't forthcoming from DOE/NNSA/UC/LANS/LANL. We need to be helping each other not calling each other morons or idiots. We all made decisions based on promises. Given what I now know would I have done thing different from 30 years ago when I came here - hell yes. But I can't undo the decisions I made based on promises. Time to help each other. I ask for help at decifering all the BS we've been fed. Let's work together here....
No one is a moron.. we all know when we've made mistakes... let's get through this together.
Anyone hear anything collaborating?
The 120 days he is mentioning I think is particular to his case. I am guessing that he could in his case go inactive and 120 days later retire. However I do not think this is a general case.
I would strongly urge you to find a good retirement specialist before you make your decision. Anyone from H&R block, Fidelity, to the specialists who have noted on this list can help you much more than ANY advice you see here. Some will give you the advice for free and others will do it under a fee. However you should do this for better piece of mind than going to HR without any knowledge.
There is lots of life worth living outside of paradise.
Let’s take a look at Option 3
Retire at 73% pay with employer medical benefits paid for family of 4
Transfer to LANS TCP2 at 92.35% pay (loss due to paying SS and Medicare tax)
Get 3.5% employer non-matching contribution to 401K
Get 100% match on first 6% of member voluntary pre-tax contribution to 401K
Result = total of 174.85% pay!
I wish I could do as well! It looks like a pretty simple choice Allen.
"inactive vested" = separation
If you do not retire within 120 days you lose: medical benefits & sick leave service credit.
You can choose at some future date to take the lump sum or annuity.
> If you do not retire within 120 days you lose: medical benefits & sick leave service credit.
> You can choose at some future date to take the lump sum or annuity.
Could you pls point me to where this is spelled out?
I must have missed it. If it's spelled out then good, if not then it should be clarified whether this equivalence exists or not.