Here’s what the source you’ve cited (not sure about their credibility) has to say:
“A public safety employee who enters the workforce at age 22, works for 44 years, makes $65K per year, and retires on their 66th birthday – earning a 3.0% per year pension factor – will qualify for a pension equivalent to 132% of their final salary, based on 3.0% per year times 44 years worked. This equates to a monthly benefit of $7,150, or $85,800 per year, a retirement income 4.5 times better than what a social security recipient would earn after working the same number of years and earning the same amount of money.”
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Here’s the truth (mind you, the 3%@50 formula is the most generous benefit formula available to most public safety employees, many have a 3%@55, or hybrid plan):
“Estimating Retirement Allowance
Retirement allowances are estimated based upon years of service credit, a benefit factor and final compensation. Your CalPERS Annual Member Statement contains your current service credit. Additional credit can then be added depending upon a projection of your final retirement date.
The benefit factor is the percent of pay you are entitled for each year of service. Under this plan, the percentage of pay to which you are entitled cannot exceed 90 percent of your final compensation.
Final compensation is your average monthly pay rate for the last employment period of either 36 months or 12 months, depending upon your employer’s contract with CalPERS.”
FWIW, I’m not defending the 3% formula, and was opposed to it from the very beginning, but what really irks me is the constant barrage of lies, hyperbole, and misinformation that is intentionally designed to redirect public anger from the financial sector to public employees who had nothing, whatsoever, to do with the finanicial crisis.
One more thing…I’ve read through a number of articles on that site and have found numerous lies. That is not a credible source of information. “Pesky facts,” indeed.
