Q) So as long as I stay until January of the year that I turn 55 (50 for public safety), then I can retire that year and start drawing my DC?
A) Regarding The DC, yes. You're eligible to withdraw immediately, given that you leave in or after January of the year you turn 55 (50 for public safety). If you leave before you turn 55 (50 for public safety), you must wait til age 59 1/2 to draw. With that said, research IRS rule 72T which, if I read it correctly, gives you the opportunity to start receiving DC payments before age 55.
Q) Should I wait until the January that I turn 55 (50 for public safety) in that year, I can start to draw both DB & DC?
A) Yes, assuming that you'll have 25 yrs of service in January of the year you turn 55 (50 for public safety).
Q) Should I leave at my 25 years, I can draw my DB no matter my age?
A) Yes. DB is still 25 and out regardless of age, or age 60 if you leave before 25 yrs of service. If you stay 25 yrs, you'll draw on day 1 of retirement.
Q) I was under the impression that we would be receiving the 15% from the start of the agreement not in yearly increments. How much does that effect the outcome for some of the people closer to retirement then I am?
A) I'm not an investment guy so I couldn't tell you what impact this may have in retirement, but it is what we agreed to in the Tentative Agreement. This whole thing was never going to be an across-the-board win for all members. Those close to retirement lose a little, the new members gain a little, and those in the middle will have likely have to invest their raises more aggressively to catch up to what the pension would have offered. But for those with lower seniority, and for all those who come on-board in the future, this is a win. In the end it's all about jumping off the S.S. Pension before, as I expect will happen, the County lets her sink. If I had to guess, that likely won't happen for several years, but I'm confident that it will happen and I don't want us to go down with it.
Q) I also have a concern over why admin has to wait until 59 ½ to pull from retirement if we choose to? Why the difference?
A) The difference for admin is due to the rules IRS has for 401a plans. Public safety (LE, Fire, Dispatch, etc) are given a break, where other enrollees are not. If you (admin) leave before January of the year you turn 55, you must wait until you're 59 1/2. There is an IRS rule 72T that allows for periodic withdrawals if you leave before that date, but I'm also not a tax lawyer, so you'll have to do your own research on that.
Q) You mentioned the county gets some perks too. What do you mean by this?
A) I received a copy of a proposed 2022-2025 contract that included changes that, for the most part, benefit the County. I was asked to hurry up and rubber stamp it but, after going through it line by line compared to the Tentative Agreement and the old contract, I have a few concerns that will need to be addressed before I bring it to you all for ratification.
Q) Is there an opt-out option to put the funds towards our actual retirement? My spouse and I have medical coverage in place and wouldn’t need to stock pile a “medical fund” for after retirement.
A) This is something I plan to address directly. Keep in mind that they may tell us to pound sand, but I will push the issue as hard as I can.
Q) I'm hearing rumors from those that have met with MERS, and the fear that was being pushed through about the county going bankrupt seems to be over amplified.
A) I don't believe anything the County tells us, and MERS has a vested interest in keeping the County happy. FOP has access to years of the County's financials, and I will be speaking with them very soon to get some clarification on that rumor.